[Federal Register Volume 63, Number 64 (Friday, April 3, 1998)]
[Rules and Regulations]
[Pages 16440-16445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8754]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 52
[CC Docket No. 95-155; FCC 98-48]
Toll Free Service Access Codes
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: On March 30, 1998, the Commission released a Fourth Report and
Order and Memorandum Opinion and Order in CC Docket No. 95-155 adopting
an assignment method for toll free vanity numbers. The Fourth Report
and Order is intended to ensure the efficient, orderly, and fair
allocation of toll free numbers.
EFFECTIVE DATE: April 3, 1998.
FOR FURTHER INFORMATION CONTACT: Robin Smolen, Network Services
Division, Common Carrier Bureau, (202) 418-2320.
SUPPLEMENTARY INFORMATION: This summarizes the Commission's Fourth
Report and Order in CC Docket No. 95-155, In the Matter of Toll Free
Service Access Codes, FCC 98-48, adopted March 27, 1998, and released
March 30, 1998. The file is available for inspection and copying during
the weekday hours of 9 a.m. to 4:30 p.m. in the Commission's Reference
Center, room 239, 1919 M St., N.W., Washington D.C., or copies may be
purchased from the Commission's duplicating contractor, ITS, Inc. 1231
20th St., N.W., Washington, D.C. 20036, phone (202) 857-3800.
Analysis of Proceeding
1. In the Fourth Report and Order in CC Docket No. 95-155, the
Commission resolves how vanity numbers should be assigned. The
Commission delegated authority to the Common Carrier Bureau to resolve
those issues necessary for the assignment of the 888 set-aside vanity
numbers and implementation of 877, including conservation plans, if
needed, on any or all toll free codes in use to prevent exhaust of toll
free numbers before deployment of the next toll free code. The
Commission concludes that vanity numbers in the 877 toll free code, and
toll free codes beyond 877, shall be released and made available on a
first-come, first-served basis as each toll free code is deployed. The
Commission further concludes that a right of first refusal shall be
offered to current 800 subscribers holding 800 vanity numbers that
correspond to the 888 vanity numbers that were initially set aside. If
the 800 subscriber refrains from exercising its option to reserve the
corresponding 888 vanity number, that number shall be released and made
available on a first-come, first-served basis. The 888 set-aside
numbers are to be made available for assignment 90 days after the 877
code is deployed.
2. With respect to this Fourth Report and Order, a Final Regulatory
Flexibility Analysis is contained in the Attachment.
3. It is ordered, pursuant to sections 1, 4(i), 201-205, 18, and
251 of the Communications Act of 1934, as amended, 47 U.S.C. 151,
154(i), 201-205, 218, and 251, that the Fourth Report and Order in CC
Docket 95-155 is hereby adopted.
4. It is further ordered, pursuant to section 5(c)(1) of the
Communications Act, as amended, 47 U.S.C. 155(c)(1), and Sec. 0.201(d)
of the Commission's rules, 47 CFR 0.201(d), that authority is delegated
to the Chief, Common Carrier Bureau to resolve those issues necessary
for the assignment of the 888 set-aside vanity numbers and
implementation of 877, including conservation plans, if needed on any
or all toll free codes in use to prevent exhaust of toll free numbers
before deployment of the next toll free code.
5. It is further ordered that all policies, rules, and requirements
of this document are effective April 3, 1998.
List of Subjects
47 CFR Part 52
Local exchange carrier, Numbering, Telecommunications.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
Rule Changes
Part 52 of Title 47 of the Code of Federal Regulations is amended
as follows:
PART 52--NUMBERING
1. The authority citation for part 52 continues to read as follows:
Authority: Sections 1, 2, 4, 5, 48 Stat. 1066, as amended; 47
U.S.C. 151, 152, 154, 155 unless otherwise noted. Interpret or apply
secs. 3, 4, 201-05, 207-09, 218, 225-7, 251-2, 271 and 332, 48 Stat.
1070, as amended, 1077; 47 U.S.C. 153, 154, 201-05, 207-09, 218,
225-7, 271 and 332 unless otherwise noted.
[[Page 16441]]
2. Add Sec. 52.111 to subpart D to read as follows:
Sec. 52.111 Toll Free Number Assignment.
Toll free numbers shall be made available on a first-come, first-
served basis unless otherwise directed by the Commission.
Note: This attachment will not appear in the Code of Federal
Regulations.
Attachment--Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act (``RFA''), an
Initial Regulatory Flexibility Analysis (``IRFA'') was incorporated in
the Toll Free Service Access Codes, Notice of Proposed Rulemaking
(``Notice''). The Commission sought written public comment on the
proposals in the Notice, including comments on the IRFA. This present
Final Regulatory Flexibility Analysis (``FRFA'') in this Fourth Report
and Order (``Order'') conforms to the RFA.
2. To the extent that any statement contained in this FRFA is
perceived as creating ambiguity with respect to our statements made in
preceding sections of this Fourth Report and Order, the statements set
forth in those preceding sections shall be controlling.
Need for, and Objectives of, the Order
3. The Commission, pursuant Sections 1, 4(i), 201-205, 218, and 251
of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i),
201-205, 218, and 251, adopts this Fourth Report and Order to ensure
the efficient, fair, and orderly allocation of toll free numbers.
Summary of Significant Issues Raised by the Public Comments in Response
to the IRFA
4. In the Notice, the Commission included an IRFA of the possible
impact on small entities of the proposals suggested in the Notice. The
Commission noted that the proposals set forth in the Notice may have a
significant economic impact on a substantial number of small entities,
because toll free numbers are essential to many businesses both in
terms of marketing and advertising products. Further, the Commission
noted that toll free numbers may also have an intrinsic value to many
businesses. The Commission sought written public comments on the IRFA.
Although no comments were submitted in direct response to the IRFA, the
Commission has addressed the issues raised in the general comments that
pertain to small entities, and has considered the possible economic
impact on small entities.
Description and Estimate of the Number of Small Entities to Which the
Rules Will Apply
5. The RFA directs agencies to provide a description of and, where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules, if adopted. The RFA generally defines
the term ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. A small business concern is one which: (1) is independently owned
and operated; (2) is not dominant in its field of operation; and (3)
satisfies any additional criteria established by the Small Business
Administration (``SBA''). A small organization is generally ``any not-
for-profit enterprise which is independently owned and operated and is
not dominant in its field.'' Nationwide, as of 1992, there were
approximately 275,801 small organizations. Small governmental
jurisdiction generally means ``governments of cities, counties, towns,
townships, villages, school districts, or special districts, with a
population of less than 50,000.'' As of 1992, there were approximately
85,006 such jurisdictions in the United States. This number includes
38,978 counties, cities, and towns; of these, 37,566, or 96 percent,
have populations of fewer than 50,000. The Census Bureau estimates that
this ratio is approximately accurate for all governmental entities.
Thus, of the 85,006 governmental entities, we estimate that 81,600 (91
percent) are small entities. Below, we further describe and estimate
the number of small entity licensees and regulates that may be affected
by the proposed rules, if adopted.
6. The most reliable source of information regarding the total
numbers of certain common carrier and related providers nationwide, as
well as the numbers of commercial wireless entities, appears to be data
the Commission publishes annually in its Telecommunications Industry
Revenue report, regarding the Telecommunications Relay Service
(``TRS''). According to data in the most recent report, there are 3,459
interstate carriers. These carriers include, inter alia, local exchange
carriers, wireline carriers and service providers, interexchange
carriers, competitive access providers, operator service providers, pay
telephone operators, providers of telephone toll service, providers of
telephone exchange service, and resellers.
7. The SBA has defined establishments engaged in providing
``Radiotelephone Communications'' and ``Telephone Communications,
Except Radiotelephone'' to be small businesses when they have no more
than 1,500 employees. Below, we discuss the total estimated number of
telephone companies falling within the two categories and the number of
small businesses in each, and we then attempt to refine further those
estimates to correspond with the categories of telephone companies that
are commonly used under our rules.
8. Although some affected incumbent local exchange carriers
(``ILECs'') may have 1,500 or fewer employees, we do not believe that
such entities should be considered small entities within the meaning of
the RFA because they are either dominant in their field of operations
or are not independently owned and operated, and therefore by
definition not ``small entities'' or ``small business concerns'' under
the RFA. Accordingly, our use of the terms ``small entities'' and
``small businesses'' does not encompass small ILECs. Out of an
abundance of caution, however, for regulatory flexibility analysis
purposes, we will separately consider small ILECs within this analysis
and use the term ``small ILECs'' to refer to any ILECs that arguably
might be defined by the SBA as ``small business concerns.''
1. Responsible Organizations
9. This Order applies to all Responsible Organizations
(''RespOrgs''), which may be small business entities. Any entity that
meets certain eligibility criteria may serve as a RespOrg. Neither the
Commission nor the SBA has developed a definition of small entities
that would apply specifically to RespOrgs. The most reliable source of
information regarding the number of RespOrgs appears to be data
collected by Database Service Management, Inc. (``DSMI''), the
organization that administers the toll free allotment database.
According to a May 8, 1996, report obtained from DSMI, 168 companies
reported that they were RespOrgs. Although it seems certain that some
of these RespOrgs are not independently owned and operated, or have
more than 1,500 employees, we are unable at this time to estimate with
greater precision the number of RespOrgs that would qualify as small
business concerns under SBA's definition. Consequently, we estimate
that there are fewer than 168 small entity RespOrgs that may be
affected by
[[Page 16442]]
the decisions adopted in this Fourth Report and Order.
2. Toll Free Subscribers
10. This Order also applies to all toll free subscribers, which
also may be small business entities. ``As noted and discussed supra,
the RFA generally defines the term ``small entity'' as having the same
meaning as the terms ``small business,'' ``small organization,'' and
``small governmental jurisdiction.'' We note here that toll free
subscribers may include entities from all three of these categories of
small entities.'' Neither the Commission nor the SBA has developed a
definition of small entities specifically applicable to toll free
subscribers. The most reliable source of information regarding the
number of 800 subscribers of which we are aware appears to be the data
we collect on the 800 numbers in use. According to our most recent
data, at the end of 1995, the number of 800 numbers in use was
6,987,063. Similarly, the most reliable source of information regarding
the number of 888 subscribers appears to be the data we collect on the
888 numbers in use. According to our most recent data, as of March 23,
1998, a total of 6,115,550 888 numbers were in use. Although it seems
certain that some of these subscribers either are not independently
owned and operated businesses, or do not have more than 1,500
employees, we are unable at this time to estimate with greater
precision the number of toll free subscribers that would qualify as
small business concerns under SBA's definition. Consequently, we
estimate that there are fewer than 6,987,063 small entity 800
subscribers and fewer than 6,115,550 888 subscribers that may be
affected by the decisions adopted in this Fourth Report and Order.
3. Telephone and Wireless Entities
11. Total Number of Telephone Companies Affected. The provisions
adopted herein may have a significant effect on a substantial number of
the small telephone companies identified by SBA. The United States
Bureau of the Census (``the Census Bureau'') reports that, at the end
of 1992, there were 3,497 firms engaged in providing telephone
services, as defined therein, for at least one year. This number
contains a variety of different categories of carriers, including local
exchange carriers, interexchange carriers, competitive access
providers, cellular carriers, mobile service carriers, operator service
providers, pay telephone operators, PCS providers, covered SMR
providers, and resellers. It seems certain that some of those 3,497
telephone service firms may not qualify as small entities or small
ILECs because they are not ``independently owned and operated.'' For
example, a PCS provider that is affiliated with an interexchange
carrier having more than 1,500 employees would not meet the definition
of a small business. It seems reasonable to conclude, therefore, that
fewer than 3,497 telephone service firms are small entity telephone
service firms or small ILECs that may be affected by the decisions
adopted in this Fourth Report and Order.
12. Wireline Carriers and Service Providers. SBA has developed a
definition of small entities for telephone communications companies
other than radiotelephone (wireless) companies. The Census Bureau
reports that, there were 2,321 such telephone companies in operation
for at least one year at the end of 1992. According to SBA's
definition, a small business telephone company other than a
radiotelephone company is one employing no more than 1,500 persons. All
but 26 of the 2,321 non-radiotelephone companies listed by the Census
Bureau were reported to have fewer than 1,000 employees. Thus, even if
all 26 of those companies had more than 1,500 employees, there would
still be 2,295 non-radiotelephone companies that might qualify as small
entities or small ILECs. Although it seems certain that some of these
carriers are not independently owned and operated, we are unable at
this time to estimate with greater precision the number of wireline
carriers and service providers that would qualify as small business
concerns under SBA's definition. Consequently, we estimate that there
are fewer than 2,295 small entity telephone communications companies
other than radiotelephone companies that may be affected by the
decisions adopted in this Fourth Report and Order.
13. Local Exchange Carriers. Neither the Commission nor the SBA has
developed a definition for small providers of local exchange services
(``LECs''). The closest applicable definition under the SBA rules is
for telephone communications companies other than radiotelephone
(wireless) companies. According to the most recent Telecommunications
Industry Revenue data, 1,371 carriers reported that they were engaged
in the provision of local exchange services. We do not have data
specifying the number of these carriers that are either dominant in
their field of operations, are not independently owned and operated, or
have more than 1,500 employees, and thus are unable at this time to
estimate with greater precision the number of LECs that would qualify
as small business concerns under the SBA's definition. Consequently, we
estimate that fewer than 1,371 providers of local exchange service are
small entities or small ILECs that may be affected by the proposed
rules, if adopted.
14. Interexchange Carriers. Neither the Commission nor the SBA has
developed a definition of small entities specifically applicable to
providers of interexchange services (``IXCs''). The closest applicable
definition under the SBA rules is for telephone communications
companies other than radiotelephone (wireless) companies. According to
the most recent Telecommunications Industry Revenue data, 143 carriers
reported that they were engaged in the provision of interexchange
services. We do not have data specifying the number of these carriers
that are not independently owned and operated or have more than 1,500
employees, and thus are unable at this time to estimate with greater
precision the number of IXCs that would qualify as small business
concerns under the SBA's definition. Consequently, we estimate that
there are fewer than 143 small entity IXCs that may be affected by the
proposed rules, if adopted.
15. Competitive Access Providers. Neither the Commission nor the
SBA has developed a definition of small entities specifically
applicable to competitive access services providers (``CAPs''). The
closest applicable definition under the SBA rules is for telephone
communications companies other than except radiotelephone (wireless)
companies. According to the most recent Telecommunications Industry
Revenue data, 109 carriers reported that they were engaged in the
provision of competitive access services. We do not have data
specifying the number of these carriers that are not independently
owned and operated, or have more than 1,500 employees, and thus are
unable at this time to estimate with greater precision the number of
CAPs that would qualify as small business concerns under the SBA's
definition. Consequently, we estimate that there are fewer than 109
small entity CAPs that may be affected by the proposed rules, if
adopted..
16. Operator Service Providers. Neither the Commission nor the SBA
has developed a definition of small entities specifically applicable to
providers of operator services. The closest applicable definition under
the SBA rules is for telephone communications companies other than
radiotelephone (wireless) companies. According to the most recent
[[Page 16443]]
Telecommunications Industry Revenue data, 27 carriers reported that
they were engaged in the provision of operator services. We do not have
data specifying the number of these carriers that are not independently
owned and operated or have more than 1,500 employees, and thus are
unable at this time to estimate with greater precision the number of
operator service providers that would qualify as small business
concerns under the SBA's definition. Consequently, we estimate that
there are fewer than 27 small entity operator service providers that
may be affected by the proposed rules, if adopted.
17. Pay Telephone Operators. Neither the Commission nor the SBA has
developed a definition of small entities specifically applicable to pay
telephone operators. The closest applicable definition under SBA rules
is for telephone communications companies other than radiotelephone
(wireless) companies. According to the most recent Telecommunications
Industry Revenue data, 441 carriers reported that they were engaged in
the provision of pay telephone services. We do not have data specifying
the number of these carriers that are not independently owned and
operated or have more than 1,500 employees, and thus are unable at this
time to estimate with greater precision the number of pay telephone
operators that would qualify as small business concerns under the SBA's
definition. Consequently, we estimate that there are fewer than 441
small entity pay telephone operators that may be affected by the
proposed rules, if adopted.
18. Resellers (including debit card providers). Neither the
Commission nor the SBA has developed a definition of small entities
specifically applicable to resellers. The closest applicable SBA
definition for a reseller is a telephone communications company other
than radiotelephone (wireless) companies. According to the most recent
Telecommunications Industry Revenue data, 339 reported that they were
engaged in the resale of telephone service. We do not have data
specifying the number of these carriers that are not independently
owned and operated or have more than 1,500 employees, and thus are
unable at this time to estimate with greater precision the number of
resellers that would qualify as small business concerns under the SBA's
definition. Consequently, we estimate that there are fewer than 339
small entity resellers that may be affected by the proposed rules, if
adopted.
19. Wireless (Radiotelephone) Carriers. SBA has developed a
definition of small entities for radiotelephone (wireless) companies.
The Census Bureau reports that there were 1,176 such companies in
operation for at least one year at the end of 1992. According to SBA's
definition, a small business radiotelephone company is one employing
fewer than 1,500 persons. The Census Bureau also reported that 1,164 of
those radiotelephone companies had no more than 1,000 employees. Thus,
even if all of the remaining 12 companies had more than 1,500
employees, there would still be 1,164 radiotelephone companies that
might qualify as small entities if they are independently owned or
operated. Although it seems certain that some of these carriers are not
independently owned and operated, we are unable at this time to
estimate with greater precision the number of radiotelephone carriers
and service providers that would qualify as small business concerns
under SBA's definition. Consequently, we estimate that there are fewer
than 1,164 small entity radiotelephone companies that may be affected
by the decisions adopted in this Fourth Report and Order.
20. Cellular Licensees. Neither the Commission nor the SBA has
developed a definition of small entities applicable to cellular
licensees. Therefore, the applicable definition of small entity is the
definition under the SBA rules applicable to radiotelephone (wireless)
companies. This provides that a small entity is a radiotelephone
company employing no more than 1,500 persons. According to the Bureau
of the Census, only twelve radiotelephone firms out of a total of 1,178
such firms which operated during 1992 had 1,000 or more employees.
Therefore, even if all twelve of these firms were cellular telephone
companies, nearly all cellular carriers were small businesses under the
SBA's definition. In addition, we note that there are 1,758 cellular
licenses; however, a cellular licensee may own several licenses. In
addition, according to the most recent Telecommunications Industry
Revenue data, 804 carriers reported that they were engaged in the
provision of either cellular service or Personal Communications Service
(``PCS'') services, which are placed together in the data. We do not
have data specifying the number of these carriers that are not
independently owned and operated or have more than 1,500 employees, and
thus are unable at this time to estimate with greater precision the
number of cellular service carriers that would qualify as small
business concerns under the SBA's definition. Consequently, we estimate
that there are fewer than 804 small cellular service carriers that may
be affected by the proposed rules, if adopted.
21. Private and Common Carrier Paging. The Commission has proposed
a two-tier definition of small businesses in the context of auctioning
licenses in the Common Carrier Paging and exclusive Private Carrier
Paging services. Under the proposal, a small business will be defined
as either (1) an entity that, together with its affiliates and
controlling principals, has average gross revenues for the three
preceding years of not more than $3 million, or (2) an entity that,
together with affiliates and controlling principals, has average gross
revenues for the three preceding calendar years of not more than $15
million. Because the SBA has not yet approved this definition for
paging services, we will utilize the SBA's definition applicable to
radiotelephone companies, i.e., an entity employing no more than 1,500
persons. At present, there are approximately 24,000 Private Paging
licenses and 74,000 Common Carrier Paging licenses. According to the
most recent Telecommunications Industry Revenue data, 172 carriers
reported that they were engaged in the provision of either paging or
``other mobile'' services, which are placed together in the data. We do
not have data specifying the number of these carriers that are not
independently owned and operated or have more than 1,500 employees, and
thus are unable at this time to estimate with greater precision the
number of paging carriers that would qualify as small business concerns
under the SBA's definition. Consequently, we estimate that there are
fewer than 172 small paging carriers that may be affected by the
proposed rules, if adopted. We estimate that the majority of private
and common carrier paging providers would qualify as small entities
under the SBA definition.
22. Mobile Service Carriers. Neither the Commission nor the SBA has
developed a definition of small entities specifically applicable to
mobile service carriers, such as paging companies. As noted above in
the section concerning paging service carriers, the closest applicable
definition under the SBA rules is that for radiotelephone (wireless)
companies, and the most recent Telecommunications Industry Revenue data
shows that 172 carriers reported that they were engaged in the
provision of either paging or ``other mobile'' services. Consequently,
we estimate that there are fewer than 172 small mobile service carriers
that may be affected by the proposed rules, if adopted.
[[Page 16444]]
23. Broadband Personal Communications Service (PCS). The broadband
PCS spectrum is divided into six frequency blocks designated A through
F, and the Commission has held auctions for each block. The Commission
defined ``small entity'' for Blocks C and F as an entity that has
average gross revenues of less than $40 million in the three previous
calendar years. For Block F, an additional classification for ``very
small business'' was added and is defined as an entity that, together
with their affiliates, has average gross revenues of not more than $15
million for the preceding three calendar years. These regulations
defining ``small entity'' in the context of broadband PCS auctions have
been approved by the SBA. No small businesses within the SBA-approved
definition bid successfully for licenses in Blocks A and B. There were
90 winning bidders that qualified as small entities in the Block C
auctions. A total of 93 small and very small business bidders won
approximately 40% of the 1,479 licenses for Blocks D, E, and F.
However, licenses for blocks C through F have not been awarded fully,
therefore there are few, if any, small businesses currently providing
PCS services. Based on this information, we conclude that the number of
small broadband PCS licensees will include the 90 winning C Block
bidders and the 93 qualifying bidders in the D, E, and F blocks, for a
total of 183 small entity PCS providers as defined by the SBA and the
Commission's auction rules.
24. SMR Licensees. Pursuant to 47 CFR 90.814(b)(1), the Commission
has defined ``small entity'' in auctions for geographic area 800 MHz
and 900 MHz SMR licenses as a firm that had average annual gross
revenues of less than $15 million in the three previous calendar years.
This definition of a ``small entity'' in the context of 800 MHz and 900
MHz SMR has been approved by the SBA. The decisions adopted in this
Fourth Report and Order may apply to SMR providers in the 800 MHz and
900 MHz bands that either hold geographic area licenses or have
obtained extended implementation authorizations. We do not know how
many firms provide 800 MHz or 900 MHz geographic area SMR service
pursuant to extended implementation authorizations, nor how many of
these providers have annual revenues no more than $15 million. We
assume, for purposes of this FRFA, that all of the extended
implementation authorizations may be held by small entities, which may
be affected by the decisions adopted in this Fourth Report and Order.
25. The Commission recently held auctions for geographic area
licenses in the 900 MHz SMR band. There were 60 winning bidders who
qualified as small entities in the 900 MHz auction. Based on this
information, we conclude that the number of geographic area SMR
licensees affected by the decisions adopted in this Fourth Report and
Order includes these 60 small entities. In the recently concluded 800
MHz SMR auction there were 524 licenses awarded to winning bidders, of
which 38 were won by small or very small entities. We assume that all
38 may be affected by the decisions adopted in this Fourth Report and
Order.
4. Cable System Operators (SIC 4841)
26. SBA has developed a definition of small entities for cable and
other pay television services, which includes all such companies
generating less than $11 million in revenue annually. This definition
includes cable systems operators, closed circuit television services,
direct broadcast satellite services, multipoint distribution systems,
satellite master antenna systems and subscription television services.
According to the Census Bureau data from 1992, there were 1,788 total
cable and other pay television services and 1,423 had less than $11
million in revenue.
27. The Commission has developed its own definition of a small
cable system operator for the purposes of rate regulation. Under the
Commission's rules, a ``small cable company,'' is one serving fewer
than 400,000 subscribers nationwide. Based on our most recent
information, we estimate that there were 1,439 cable operators that
qualified as small cable system operators at the end of 1995. Since
then, some of those companies may have grown to serve over 400,000
subscribers, and others may have been involved in transactions that
caused them to be combined with other cable operators. Consequently, we
estimate that there are fewer than 1,439 small entity cable system
operators that may be affected by the decisions adopted in this Fourth
Report and Order.
28. The Communications Act also contains a definition of a small
cable system 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.'' The Commission has determined that there are 66,000,000
subscribers in the United States. Therefore, we found that an operator
serving fewer than 660,000 subscribers shall be deemed a small
operator, if its annual revenues, when combined with the total annual
revenues of all of its affiliates, do not exceed $250 million in the
aggregate. Based on available data, we find that the number of cable
operators serving 660,000 subscribers or less totals 1,450. We do not
request nor do we collect information concerning whether cable system
operators are affiliated with entities whose gross annual revenues
exceed $250,000,000, and thus are unable at this time to estimate with
greater precision the number of cable system operators that would
qualify as small cable operators under the definition in the
Communications Act.
Description of Projected Reporting, Recordkeeping and Other Compliance
Requirements
29. In this Fourth Report and Order, we adopt a requirement that
DSMI release vanity numbers in the 877 toll free code and in toll free
codes beyond 877 at the same time as each code is deployed, to be made
available on a first-come, first-served basis. In addition, we adopt a
requirement that RespOrgs assign the 888 vanity numbers that were
initially set aside, to their 800 customers holding the corresponding
800 vanity number, provided these 800 subscribers exercise an option to
reserve the 888 set-aside number. Finally, we adopt a requirement that
DSMI release the 888 set-aside vanity numbers, to be made available on
a first-come, first-served basis if the 800 subscriber chooses to
refrain from exercising its option to reserve the number. We conclude
that these requirements are consistent with our obligation under
section 251(e) of the Act to ensure that numbers are made available on
an equitable basis. We believe that these requirements will not unduly
burden DSMI because the act of releasing numbers is part of DSMI's
responsibility as administrator of the toll free database and will not
require any additional recordkeeping. Furthermore, these requirements
will reduce DSMI's burden by no longer requiring DSMI to ensure that
these numbers remain unavailable. We also believe that these
requirements will not unduly burden RespOrgs, including small business
entities, because the act of assigning numbers to subscribers and
releasing numbers to the spare pool is part of RespOrgs'
responsibilities as managers of toll free subscribers' database
records. We further believe that these requirements will not unduly
burden subscribers, including small business entities, because the
subscribers may
[[Page 16445]]
decline to exercise the option. If however, the subscriber chooses to
exercise the option, the necessary steps involved in reserving these
numbers do not exceed the necessary steps involved in reserving any
other toll free numbers. We anticipate that no new skills are necessary
to comply with this requirement, and that no additional staff or other
resources should be necessary to comply with this requirement.
Furthermore, we adopt no new reporting or recordkeeping requirements
for toll free subscribers, including small business entities.
Significant Alternatives and Steps Taken by Agency To Minimize
Significant Economic Impact on a Substantial Number of Small Entities
Consistent With Stated Objectives
30. As stated, we conclude that releasing vanity numbers in the 877
code and codes beyond 877 as each code is deployed to be made available
on a first-come, first-served basis, is consistent with our obligation
under section 251(e) of the Act to ensure that numbers are made
available on an equitable basis. This conclusion is in the public
interest, and will not have an adverse impact on toll free subscribers,
including small business entities, because it will open the toll free
market to all toll free subscribers on an equal basis. Small toll free
subscribers will be affected in the same manner as non-small business
entities. We also conclude that allowing current 800 subscribers a
right of first refusal to the corresponding 888 vanity numbers
initially set aside is consistent with our obligation under Section
251(e) of the Act to ensure that numbers are made available on an
equitable basis. This conclusion is also in the public interest, and
will not have an adverse impact on toll free subscribers, including
small business entities, because all toll free subscribers, including
small business entities, with an 800 number corresponding to an 888
set-aside number will have a right of first refusal.
31. We considered providing a right of first refusal to subscribers
that expressed interest in replicating their toll free numbers beyond
the 888 toll free code. We declined to accept various proposals
associated with a right of first refusal for future codes. We concluded
that such a requirement would have conflicted with our goal to allocate
toll free numbers efficiently, fairly, and on an orderly basis. We
found that a right of first refusal for future codes would have been
discriminatory against new subscribers because it would have precluded
them from obtaining certain desirable numbers. If incumbent subscribers
were allowed to exercise a right of first refusal in future codes, they
would have a decided advantage over entities by precluding them from
obtaining these numbers to represent their businesses. The entities
that would be placed at a disadvantage by such an approach would
probably have included small business entities. New business entities
are often small, and the new entities would have been the entities
precluded from obtaining those desirable vanity numbers. By allowing a
right of first refusal for the 888 set-aside only, new subscribers,
including small business entities, will have the opportunity to reserve
desirable numbers in 877 and codes beyond 877.
32. We also considered providing a right of first refusal with a
fee. We declined to accept various proposals associated with a fee-
based right of first refusal. We concluded that such a requirement
would not solve the problems associated with discriminatory access to
toll free numbers. In addition, such a requirement could place an undue
financial burden on small business entities that may not have the
financial resources to comply with such a fee requirement.
33. We also considered imposing a Standard Industrial
Classification (``SIC'') code requirement. Under this option, an
incumbent toll free subscriber with commercial concerns related to
assignment of the corresponding vanity number in a subsequent toll free
code would have reported its code to its toll free service provider or
RespOrg, that in turn would have reported the code to DSMI. DSMI would
have incorporated this SIC code into the subscriber's record and
queried the database when applicants requested a corresponding number
in another code to determine if their SIC code is the same as the
current holder of the corresponding number in the previous toll free
code. If the two parties shared the same SIC code and were, therefore,
considered competitors, the applicant for the new number would have
been prohibited from obtaining that number. We concluded that this
option is inconsistent with our goal to allocate toll free numbers on
an efficient, fair, and orderly basis. We determined that such a
requirement would be administratively burdensome, difficult to apply
because of a rapidly changing market, and subject to manipulation.
Moreover, as with a right of first refusal, this option would have
provided incumbent subscribers with a decided advantage over entities
in the same line of business by precluding them from obtaining certain
desirable numbers. The entities that would have been placed at a
disadvantage by such an approach would have probably included small
business entities. New business entities are often small, and the new
entities would have been the entities precluded form obtaining those
888 numbers.
34. The Office of Advocacy, U.S. Small Business Administration
(''SBA''), filed a Written Ex Parte Presentation on March 17, 1998
requesting a delay in the opening of the 877 toll free code until the
Commission has resolved the issue of vanity-number treatment and has
analyzed alternatives that can ease the burden on small entities.
This Fourth Report and Order addresses the issue of vanity-number
assignment and in doing so considers the effects on small businesses.
Furthermore, delaying 877 deployment would have adverse consequences on
new RespOrgs planning their businesses around the April 5, 1998 date.
New business entities are often small, and these entities would have
been placed at a disadvantage by delaying 877 deployment.
Report to Congress
35. The Commission will send a copy of the Toll Free Service Access
Codes, Fourth Report and Order, including this Final Regulatory
Flexibility Analysis, in a report to be sent to Congress pursuant to
the Small Business Regulatory Enforcement Fairness Act of 1996, see 5
U.S.C. 801(a)(1)(A). In addition, the Commission will send a copy of
the Toll Free Service Access Codes, Fourth Report and Order, including
FRFA, to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the Toll Free Service Access Codes, Fourth
Report and Order and FRFA (or summaries thereof) will also be published
in the Federal Register. See 5 U.S.C. 604(b).
[FR Doc. 98-8754 Filed 4-2-98; 8:45 am]
BILLING CODE 6712-01-P
