[Federal Register Volume 64, Number 146 (Friday, July 30, 1999)]
[Rules and Regulations]
[Pages 41320-41333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19686]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 1, 52, 54, and 64
[FCC 99-175]
1998 Biennial Regulatory Review--Streamlined Contributor
Reporting Requirements Associated with Administration of
Telecommunications Relay Services, North American Numbering Plan, Local
Number Portability, and Universal Service Support Mechanisms
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: The Commission combined four reporting requirements so that
carriers need only file one worksheet to satisfy the contributor
reporting requirements associated with: the universal service support
mechanisms; telecommunications relay services; cost recovery mechanism
for numbering administration; and cost recovery mechanism for shared
costs of long-term local number portability. The Commission also made
other modifications designed to rationalize requirements, including
changing the revenue measure for assessing contributions to the TRS
Fund and numbering administration cost recovery so that contributions
will be based on end-user telecommunications revenues.
DATES: Effective August 30, 1999.
FOR FURTHER INFORMATION CONTACT: Scott K. Bergmann, Industry Analysis
Division, Common Carrier Bureau, at (202) 418-7102; or Jim Lande,
Industry Analysis Division, Common Carrier Bureau at (202) 418-0948.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order released July 14, 1999 (FCC 99-175). The full text of the
Report and Order is available for inspection and copying during normal
business hours in the FCC Reference Center, Room CY-A257, 445 12th
Street, S.W., Washington, D.C. 20554. The complete text also may be
purchased from the Commission's copy contractor, International
Transcription Service, Inc. (202) 857-3800, 1231 20th St., NW,
Washington, D.C. 20036.
I. Summary of the Report and Order
1. In the Report and Order summarized here, the Commission acted to
simplify its filing requirements for communications service providers
by replacing several different--but largely duplicative--forms with one
consolidated form, the Telecommunications Reporting Worksheet. At
present, telecommunications carriers and certain telecommunications
service providers must comply with separate reporting requirements for
their contributions to finance interstate Telecommunications Relay
Services Fund, federal universal service support mechanisms,
administration of the North American Numbering Plan (NANP), and the
shared costs of long-term local number portability.1 We act
here to harmonize these multiple contributor reporting requirements and
to minimize the administrative burdens for carriers and service
providers. Thus, in lieu of making four separate filings in the spring
of 2000, reporting carriers will simply file one copy of the new
worksheet on April 1, 2000.2 We emphasize that we are not
imposing new reporting requirements in this proceeding; rather, our
goal is to simplify the requirements to the greatest extent possible
while continuing to ensure the efficient administration of the support
and cost recovery mechanisms.
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\1\ See 47 U.S.C. 151, 225, 251, 254. The Communications Act of
1934, as amended, (the Communications Act or the Act) is codified at
47 U.S.C. 151 et seq.
\2\ The Common Carrier Bureau will release, by Public Notice,
the worksheet and instructions to be used for the September 1999
universal service filing. See, infra, paragraph 32.
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II. Background
2. In a series of separate proceedings, the Commission has
established procedures to finance interstate telecommunications relay
services,3 universal service support mechanisms,4
administration of the North American Numbering Plan,5 and
shared costs of local number portability.6 To
[[Page 41321]]
accomplish each of these goals, contributions are collected from
telecommunications carriers and certain other providers of
telecommunications services. As currently structured, our rules require
telecommunications carriers having interstate revenues to file, at
different times throughout the year, a number of contributor reporting
worksheets that reflect often duplicative reporting requirements. Such
carriers must file four forms (Form 431, TRS Fund Worksheet;
7 Form 457, Universal Service Worksheet; 8 Form
496, NANPA Funding Worksheet; 9 and Form 487, LNP Worksheet
10) containing revenue and other data on which contributions
to support or cost recovery mechanisms are based. For each of these
forms, with the exception of the Universal Service Worksheet, carriers
seeking confidential treatment of the data submitted in these forms
must also file separate requests for nondisclosure with the
Commission.11 In addition to these contributor reporting
requirements, all carriers must also file data concerning contact
information for an agent for service of process located in the District
of Columbia.12
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\3\ See Public Law 101-336, Sec. 401, 104 Stat. 327, 366-69
(adding section 225 to the Communications Act of 1934, as amended,
47 U.S.C. 225). See also Telecommunications Relay Services and the
Americans With Disabilities Act of 1990, Third Report and Order, FCC
93-357, CC Docket No. 90-571, 8 FCC Rcd 5300, 58 FR 39671 (July 26,
1993) (TRS Third Report and Order) (``recovering interstate relay
costs from all common carriers who provide interstate service on the
basis of their interstate revenues will accomplish this goal'').
\4\ See 47 U.S.C. 254. See also Federal-State Joint Board on
Universal Service, Report and Order, FCC 97-157, CC Docket No. 96-
45, 12 FCC Rcd 8776, 62 FR 32862 (June 17, 1997) (Universal Service
Order).
\5\ See 47 U.S.C. 251(e)(2). Administration of the North
American Numbering Plan, Toll Free Service Access Codes, Third
Report and Order and Third Report and Order, FCC 97-372, CC Docket
No. 92-237, 95-155, 12 FCC Rcd 23040, 62 FR 55179 (October 23,
1997).
\6\ See 47 U.S.C. 251(e)(2). See also Telephone Number
Portability, Third Report and Order, FCC 98-82, CC Docket 95-116, 63
FR 35150 (June 29, 1998) (LNP Cost Recovery Order). This Report and
Order is limited to the cost recovery mechanism for the shared costs
of long-term local number portability.
\7\ See 47 CFR 64.604(c)(4)(iii)(B). See also Telecommunications
Relay Services and the Americans With Disabilities Act of 1990,
Order, DA 98-2481, CC Docket No. 90-571 (rel. Dec. 2, 1998) (1999
TRS Fund Worksheet Order).
\8\ See 47 CFR 54.711. Common Carrier Bureau Announces Release
of Revised Universal Service Worksheet (FCC Form 457) To Reflect
Change in Reporting of Revenues From Inside Wiring Maintenance,
Public Notice, DA 99-432, CC Docket No. 96-45 (rel. Mar. 5, 1999)
(1999 Universal Service Worksheet Notice).
\9\ See 47 CFR 52.16. See also Common Carrier Bureau Announces
Release of 1999 North American Numbering Plan Funding Worksheet, FCC
Form 496, Public Notice, 13 FCC Rcd 17888, DA 98-1865 (rel. Sept.
15, 1998) (1999 NANP Funding Worksheet Notice).
\10\ See 47 CFR 52.32. See also All Telecommunications Carriers
Must Begin Contributing To the Regional Database Costs for Long-Term
Number Portability in 1999, Public Notice, DA 99-544, CC Docket No.
95-116 (rel. Mar. 15, 1999) (1999 LNP Worksheet Notice).
\11\ See 47 CFR 0.459.
\12\ See 47 U.S.C. 413; 47 CFR 1.47(h).
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3. On September 25, 1998, the Commission released a Notice of
Proposed Rulemaking and Notice of Inquiry, 63 FR 54090 (October 8,
1998), to initiate this proceeding.13 Twenty-eight parties
filed comments and ten parties filed reply comments to the Notice.
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\13\ Contributor Reporting Requirements Notice, 13 FCC Rcd
19295, 63 FR 54090 (October 8, 1998).
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III. Streamlining Contributor Reporting Requirements
A. Use of a Consolidated Worksheet
4. We adopt a new Telecommunications Reporting Worksheet to replace
the four existing worksheets used to collect contributor data. The new
worksheet will also be used by carriers to identify agents for service
of process, as required by section 413 of the Act. We note that
carriers and administrators were nearly unanimous in their support of
this proposal, indicating that it would result in tangible
administrative savings. We also conclude that adopting one worksheet to
satisfy these obligations will reduce confusion for carriers and should
increase compliance, particularly by smaller carriers. Finally, we
believe that adopting a consolidated worksheet and granting
administrators the ability to share revenue data will reduce the costs
for administrators and, thereby, further effect savings overall.
5. To consolidate the worksheets, we amend the corresponding
sections of the Commission's rules for universal service, TRS, local
number portability, and numbering administration, so that those rule
sections now refer to the Telecommunications Reporting
Worksheet.14 To the same end, we also amend our rules
concerning agents for service of process in section 1.47 to provide for
the use of the worksheet.15 Attached, as Appendix D to the
Report and Order, is the initial Telecommunications Reporting Worksheet
(including both the April and the streamlined September versions) that
will be used for the September 1, 1999 filing.16 The new
Telecommunications Reporting Worksheet will provide the necessary
information while reducing to the lowest possible level the burden for
carriers and service providers.
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\14\ See Attachment to this Summary (Rules Changes).
\15\ See Attachment to this Summary (Rules Changes).
\16\ See Section III. B. of this Summary (concerning Timing
Issues).
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6. We do not adopt, however, the Commission's proposal to use the
Telecommunications Reporting Worksheet to collect revenue and plant
data required under section 43.21(c) of the Commission's
rules.17
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\17\ See Contributor Reporting Requirements Notice, 13 FCC Rcd
19295, 19309, 63 FR 54090 (October 8, 1998); 47 CFR 43.21(c).
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B. Timing Issues
1. Uniform Filing Date
7. Consolidating the multiple existing filings into the
Telecommunications Reporting Worksheet will reduce the number of times
that carriers will need to assemble data and report it. We direct the
Bureau to utilize a single filing date for the Telecommunications
Reporting Worksheet for the purposes of universal service, TRS, NANP,
and local number portability.18 Our decision to adopt a
single filing date is bolstered by all of the commenters to address
this proposal. Since we adopt the first iteration of the
Telecommunications Reporting Worksheet in this order, we direct that,
for the first year's filing, the Telecommunications Reporting Worksheet
should be filed on April 1st.
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\18\ Agent for service of process data required pursuant to
section 413 of the Act is not necessarily filed at one time of the
year, but at the time the carrier changes its agent for service of
process in the District of Columbia. This requirement will remain
unchanged. See 47 CFR 1.47(h).
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8. We clarify that the new Telecommunications Reporting Worksheet
will become effective upon approval by the Office of Management and
Budget (OMB), but not less than thirty days from publication in the
Federal Register. It is our intention that contributors to the
universal service support mechanisms should use the streamlined Form
499-S version (FCC Form 499S) to satisfy the September 1, 1999
universal service filing. However, because we are required to seek
approval from the Office of Management and Budget for this revised
information collection, it is possible that the new form may not be
available for use for the September 1999 filing. We direct the Bureau
to announce by Public Notice whether contributors should file the new
September version or whether contributors should file, for a final
time, the existing Universal Service Worksheet. For the purposes of
TRS, NANP, LNP, universal service, the Form 499-A version of the
worksheet will be used to satisfy the April 1, 2000 filing. In
addition, the worksheet will be available to be used by carriers to
satisfy their section 413 obligations concerning agents for service of
process,19 as soon as it is approved by OMB, but not less
than thirty days after publication in the Federal Register. This
timeframe should give administrators sufficient time to prepare their
systems for the new worksheet and should give filers sufficient time to
become familiar with the new worksheet.
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\19\ See Section III. B. of the Order.
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2. September 1st Filing Date for Universal Service Support Mechanisms
9. We conclude that a more streamlined form is acceptable for the
September 1st filing. Accordingly, we adopt a ``short form'' for
purposes of the
[[Page 41322]]
September 1st filing that will omit data that is not essential for the
mid-year calculation of universal service contributions.
E. Filing Location(s)
10. We conclude that subject carriers and service providers need
only file one copy of their completed Telecommunications Reporting
Worksheet, rather than separate copies with each administrator. We
facilitate a single filing location by instructing the administrators
to develop procedures for collecting, validating, and distributing the
contributor data provided in the new Telecommunications Reporting
Worksheet.20
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\20\ See Section III. G. (discussing data entry of the
Telecommunications Reporting Worksheet) of the Order. The Bureau
will announce by Public Notice the location for filing the April
2000 Telecommunications Reporting Worksheet.
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F. Procedures for Future Changes to the Telecommunications Reporting
Worksheet
11. We adopt our proposal and delegate authority to make future
changes to the Telecommunications Reporting Worksheet to the Chief of
the Common Carrier Bureau.21 The Bureau already has broad
authority to waive, reduce, or eliminate the contributor reporting
requirements for universal service, and the Bureau has latitude with
respect to the administration of the NANP, LNP, and TRS contributor
reporting requirements. These delegations extend to administrative
aspects of the requirements, e.g., where and when worksheets are filed,
incorporating edits to reflect Commission changes to the substance of
the mechanisms, and other similar details.
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\21\ See Contributor Reporting Requirements Notice, 13 FCC Rcd
19295, 19319-20, 63 FR 54090 (October 8, 1998).
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12. So that these delegations are consistent, we amend the
Commission's rules to grant the Common Carrier Bureau delegated
authority, in keeping with the current delegation for universal service
purposes, to waive, reduce, modify, or eliminate the contributor
reporting requirements for the TRS, LNP, and NANP mechanisms, as
necessary to preserve the sound and efficient administration of these
support and cost recovery mechanisms.22 We specify that the
Bureau has the authority to ``modify'' these reporting requirements as
a matter of clarification, because we believe that this authority is
implied within the existing grant. We reaffirm that this delegation
extends only to making changes to the administrative aspects of the
reporting requirements, not to the substance of the underlying
programs.
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\22\ See Appendix B, Rules Amended.
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G. Information Sharing and Delegation of Data Entry Functions Between
Administrators
13. We amend our rules to allow the administrators to share
confidential contributor information with one another for the purposes
of comparing individual contributors' revenue, contact, and payment
history information. Based on our experience with the limited sharing
provisions currently allowed under our rules and on the record in this
proceeding, we conclude that the ability to share contributor data will
assist the administrators in monitoring compliance with the
contribution requirements by revealing inconsistencies between revenue
data reported to the different administrators. This sharing of
information will also enhance the administrators' performance of their
collection functions and thereby better ensure the integrity and
efficient administration of the support and cost recovery mechanisms.
Moreover, we amend our rules to ensure that such information cannot be
used for purposes unrelated to the administration of the mechanisms;
thus, ensuring proper treatment of confidential contributor
information.23
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\23\ See Section III.H. (concerning Confidentiality Issues) of
the Order.
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14. Starting with the April 2000 filing of the consolidated
worksheet, the administrators will have a practical need to share
carrier-provided information because we direct in this order that
filers need only submit one copy of their completed
worksheets.24 Rather than mandate particular data sharing
procedures, we order the administrators to develop efficient and
effective procedures for collecting, validating, and distributing the
centrally-filed contributor data amongst themselves. We expect, for
example, that it might be more cost effective to have one administrator
perform the data entry and preliminary verification functions for more
than one of the support and cost recovery mechanisms. Whatever their
decision, we direct the administrators to file with the Bureau, within
90 days after release of this order, a summary of their proposed
procedures for distributing the data from the worksheet.
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\24\ See Section III.E. (discussing the filing location for the
consolidated worksheet) of the Order. The Bureau will announce by
Public Notice the location for filing the April 2000
Telecommunications Reporting Worksheet.
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15. We conclude that the costs of collecting, validating, and
distributing the carrier-provided information--and, any savings derived
from consolidating redundant administrative tasks--should be allocated
equitably among the administrators. Accordingly, we order the
administrators to include in their filed summary a description of how
related costs will be equitably apportioned. We delegate to the Bureau
the authority to review the administrators' summary, including the
proposed cost allocation plan.
16. To preserve the integrity of the support and cost recovery
mechanisms, it is important to ensure that all contributor data is
collected. We thus expect that the summarized procedures should reflect
the administrators' commitment to ensuring that all required data is
collected and validated.
H. Additional Confidentiality Issues
17. We adopt our proposal to permit carriers filing the
Telecommunications Reporting Worksheet to certify that the revenue data
contained in their submissions are privileged or confidential
commercial or financial information and that disclosure of such
information would likely cause substantial harm to the competitive
position of the entity filing the worksheet.25 As proposed,
we amend our rules so that filers will be able to make this
certification on their Telecommunications Reporting Worksheet and
request Commission nondisclosure of information contained in the
worksheet simply by checking a box on the worksheet, in lieu of
submitting a separate request pursuant to section 0.459 of the
Commission's rules.
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\25\ See Appendix D, Telecommunications Reporting Worksheet. We
note that Blooston requests that the Commission grant confidential
treatment for other information on the worksheet, such as the
facsimile numbers and e-mail addresses of the contact persons. Any
such request for confidential treatment would have to be separately
pleaded pursuant to section 0.459. 47 CFR 0.459. We note, however,
that the Commission does not plan to routinely release this
information.
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18. We make clear, however, that simply requesting confidential
treatment by means of this check-box does not necessarily entitle the
filer to nondisclosure. Indeed, if the Commission is to receive a
request for disclosure of the information on the worksheets, or if the
Commission proposes to disclose the information, the filer would be
required to make the full showing required under our
rules.26
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For example, we expect that the Commission would be disinclined to
withhold information related to the size of an individual carrier's
contribution (information which third parties could potentially use to
estimate that carrier's revenues) in an enforcement action against a
carrier for failure to make a required contribution to one of the
support or cost recovery mechanisms.
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\26\ See 47 CFR 0.459. See also Examination of Current Policy
Concerning the Treatment of Confidential Information Submitted to
the Commission, FCC 98-184, GC Docket No. 96-55, 63 FR 44161 (August
18, 1998) (listing the showings required in a request that
information be withheld and stating that the Commission may defer
action on such requests until a formal request for public inspection
has been made).
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19. In light of our decision to allow administrators to share
contributor revenue data, we take additional measures to ensure the
nondisclosure of confidential submissions. We accordingly modify our
rules to extend each administrator's confidentiality obligations to the
data obtained from other funds. Moreover, we amend our rules to ensure
that the administrators shall only use contributor data--whether
obtained directly from contributors or from administrators--for the
purpose administering the support and cost recovery
mechanisms.27
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\27\ We note that the TRS rules enable the TRS administrator to
use data obtained from contributors to be used for calculating the
regulatory fees of interstate common carriers, and aggregating such
fee payments for submission to the Commission. We do not alter these
provisions.
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I. Electronic Filing
20. We conclude, based on our experience in other proceedings, that
making available an electronic filing system for the Telecommunications
Reporting Worksheet may allow filers and administrators to reduce costs
and improve accuracy. Accordingly, we take initial steps in this
proceeding to develop and move to an electronic filing system. We
expect, however, that the costs and benefits of an electronic filing
system can vary significantly depending on the design of the system.
Indeed, in light of the complexities raised in the record by both
carriers and administrators, we conclude that it is imperative for the
development of and the transition to an eventual electronic filing
system to be conducted with great involvement from the administrators
and carriers.28
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\28\ See, e.g., MCI Comments at 5; GTE Comments at 4; Blooston
Reply Comments at 7-9.
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21. As an initial step, we direct the administrators to assess and
report to the Bureau, within 180 days of the release of this order, on
the feasibility of implementing electronic filing. We expect the
administrators to address the potential start-up and on-going operating
costs to the administrators and carriers of an electronic system. The
administrators should also address measures and costs associated with
ensuring the accuracy and security of filed contributor data. We agree
with those commenters that state that any proposal for electronic
filing should not require expensive start-up costs for
filers.29 Moreover, we conclude that any electronic filing
proposal must satisfy a cost-benefit analysis and instruct the
administrators to conduct such an analysis. Finally, we restate our
commitment to making electronic filing and other electronic
applications accessible to persons with disabilities to the fullest
extent possible.30 Therefore, the administrators' report
should address their ability--both now and on a continuing basis--to
make electronic systems accessible to persons with disabilities.
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\29\ See, e.g., Blooston Comments at 15-16; MCI Comments at 5.
\30\ Electronic filing is subject to the program accessibility
requirements of section 1.850 of our rules. 47 CFR 1.850. See also
Workforce Investment Act of 1998, Public Law 105-220, 112 Stat. 936
(Aug. 7, 1998).
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IV. Contributions to TRS and NANPA Mechanisms
A. Overview
22. We adopt our proposals to alter the revenue bases for the TRS
and NANP mechanisms so that end-user telecommunications revenues will
be used to calculate contributions for all four mechanisms. In
addition, we also alter the current practices for assessing minimum
contributions to the TRS and NANP mechanisms to lessen regulatory
burdens on small carriers and telecommunications service providers.
23. As a preliminary matter, we reject MCI's procedural argument
that the Commission may not alter the revenue base or minimum
contributions rules because it did not give adequate notice of these
changes. Section 553(b) of the Administrative Procedures Act (APA)
requires that an agency afford interested parties adequate notice of,
and an opportunity to comment on, the provisions that appear in the
agency's final regulations. 31 Courts have interpreted this
to require that an agency provide ``sufficient factual detail and
rationale for the rule to permit interested parties to comment
meaningfully.'' 32 The Contributor Reporting Requirements
Notice, 63 FR 54090 (October 8, 1998), appeared in the Federal
Register, and it contained adequate, indeed explicit, notice of the
provisions we adopt today. We also observe that the caption to this
docket specifically references the four underlying mechanisms; a point
which we believe is not essential to satisfy the requirements of the
APA, but that further undercuts MCI's claim that it did not have
adequate notice of these proposals. Moreover, MCI cannot claim any
actual lack of notice, as it has participated fully in this proceeding,
filing both initial and reply comments. Accordingly, we believe that no
further notice is required to comply with the notice provisions of the
APA.
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\31\ 5 U.S.C. 553.
\32\ Florida Power & Light Co. v. United States, 846 F.2d 765,
771 (D.C. Cir. 1988), cert. denied, 490 U.S. 1045 (1989).
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B. Basis for Assessing Contributions
24. In light of the Commission's experience since adopting revenue
bases for TRS and NANP and in light of our efforts to streamline
contributor reporting requirements, we modify our rules for
contributions to the TRS and NANP mechanisms so that contributions will
be based on end-user telecommunications revenues. Basing contributions
to these mechanisms on end-user telecommunications revenue will
effectively carry out the statutory mandates in section 225 and 251 for
financing of TRS and NANP. 33 In addition to fulfilling the
statutory directives, moving to an end-user telecommunications revenue
basis will reduce carriers' administrative expenses associated with
these reporting requirements. Indeed, given our proposal to create a
unified contributor collection worksheet, we believe that changing the
funding basis to end-user telecommunications revenue will appreciably
reduce administrative burdens overall for carriers.
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\33\ See 47 U.S.C. 225, 251(e).
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25. Basing contributions on end-user telecommunications revenues is
consistent with the statutory language of section 225 and its
requirement that ``costs caused by interstate telecommunications relay
services shall be recovered from all subscribers for every interstate
service.'' 34 Recovering interstate relay costs from all
common carriers that provide interstate service on the basis of their
interstate revenues will accomplish this goal. End users are a
reasonable proxy for subscribers, so collecting contributions from
carriers based on revenue derived from end users satisfies section 225.
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\34\ 47 U.S.C. 225(d)(3)(B).
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26. Similarly, collecting contributions to the NANP cost recovery
on the basis of end-user telecommunications satisfies the requirements
of section 251(e). Section 251(e) of the Act directs that ``[t]he cost
of establishing
[[Page 41324]]
telecommunications numbering administration arrangements and number
portability shall be borne by all telecommunications carriers on a
competitively neutral basis as determined by the Commission.''
35 The end-user telecommunications revenue basis satisfies
the section 251 directive that contributions be assessed on a
competitively neutral basis. In particular, the Commission found this
basis to be competitively neutral because it does not give one service
provider an appreciable, incremental cost advantage when competing for
a subscriber. Further, basing contributions on end-user
telecommunications revenues will prevent contributions to the NANP
administration cost recovery from disparately affecting the ability of
carriers to earn a normal return. We affirm this analysis and conclude
that collecting contributions to the NANP administration cost recovery
based on end-user telecommunications revenues will be competitively
neutral.36
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\35\ 47 U.S.C. 251(e)(2). Even though there is no explicit
statutory requirement to do so in section 225, we conclude that the
principle of competitive neutrality is consistent with section 225
and that basing contributions to the TRS Fund on a competitively
neutral mechanism would advance the intent embodied in the
Congressional goal of ``a pro-competitive, de-regulatory national
policy framework.'' See Joint Explanatory Statement of the Committee
of Conference, S. Conf. Rep. No. 230, 104th Cong., 2d Sess. 113
(1996).
\36\ See, e.g., BellSouth Comments at 4-5; IDT Comments at 16;
Star Comments at 2-4. We note that several Bell Operating Companies
argued to the United States Court of Appeals for the 8th Circuit
that the net telecommunications revenue methodology would not be
competitively neutral if states do not permit carriers to flow
through their numbering administration costs in the prices that they
charge their competitors for telecommunications services and
facilities. California v. FCC, 124 F.3d 934 (8th Cir., 1997). The
Court of Appeals ruled that petitioners' contentions were
speculative and not ripe for review because no state had concluded
that carriers could not include numbering administration charges in
the prices for services or facilities sold to other
telecommunications service providers. Id. at 944. Adoption of an
end-user telecommunications revenue basis should moot this issue.
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27. In the case of NANP, we note that section 251(e)(2) requires
that the ``cost of establishing telecommunications numbering
administration arrangements . . . shall be borne by all
telecommunications carriers on a competitively neutral basis. . . .''
37 Given the statutory directive that contributions be
collected from ``all telecommunications carriers,'' we require carriers
that provided telecommunications service during the base year and that
have no end-user telecommunications revenue to make a fixed
contribution of twenty-five dollars ($25) to the NANP cost recovery
mechanism.38 We conclude that assessing this sum will
satisfy the statutory language of section 251(e)(2) and at the same
time will not be economically burdensome for these primarily-large
wholesale carriers. Finally, we observe that although an end-user
telecommunications revenue basis would otherwise relieve pure
wholesalers, which have no end-user revenue, from directly bearing
costs of number administration, the end-user method does not exclude
wholesale revenues from the revenue base that determines carriers'
contributions. As the Commission explained in the Universal Service
Order, 62 FR 32862 (June 17, 1997), wholesale charges are built into
retail rates, and thus the revenue basis still reflects wholesale
revenue.39
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\37\ 47 U.S.C. 251(e)(2).
\38\ While the Commission proposed in the Notice a fixed
contribution of $100 for carriers with no end-user
telecommunications revenues, we believe that the $25 contribution
will be easier to administer, since it is consistent with the $25
minimum contribution rule that we adopt for contributors with end-
user telecommunications revenues. See Section IV. C. of the Order.
\39\ See Universal Service Order, 12 FCC Rcd 8776, 9207, 62 FR
32862 (June 17, 1997).
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28. To minimize confusion for contributors and the administrators,
we wish to make the transition to contributions based on end-user
telecommunications revenues as soon as possible. For purposes of TRS,
we recognize that many contributors are still making monthly
installment payments toward their funding year 1999 contribution (which
covers the April 26, 1999 through March 26, 2000 period) and we make
clear that those contributions to the TRS Fund for the current funding
period will continue to be based on gross telecommunications revenues.
Because the contributor data needed to calculate TRS contributions for
the funding year 2000 will not be available until April 2000, we will
extend the current TRS funding period, so that contributions to the TRS
Fund will continue to be based on gross telecommunications revenues and
the current fund factor through the end of June 2000.40 As
of July 1, 2000 contributions to the TRS Fund will be based on end-user
telecommunications revenues. A new factor will be developed in time for
contributions in July 2000 and we will shift the fiscal year for TRS,
so that the funding period will run from July 1st of each year through
June 30th of the following year.
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\40\ See Telecommunications Relay Services and the Americans
with Disabilities Act of 1990, Order, DA 98-2481, CC Docket No. 90-
571 (rel. Dec. 2, 1998) (determining contribution factor for the
April 26, 1999 through March 26, 2000 period).
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29. Indeed, we will shift the fiscal years for both TRS and NANP,
so that the funding periods for these mechanisms will be more closely
timed with the receipt of annual contributor data in the April filing
of the new consolidated worksheet. We also make clear that
contributions to the NANP cost recovery will continue to be based on
net telecommunications revenues through the end of the current funding
year, which covers fund administration from March 1999 through February
2000. The NANP Billing and Collection Agent will begin collecting
contributions based on end-user telecommunications revenues for the
funding year 2000. So that we may transition the NANP funding period to
run from July 1st of each year through June 30th of the following year,
we direct that the funding year 2000 will cover the sixteen month
period from March 2000 through June 2001. We direct that, for purposes
of the NANP funding year 2000, the Billing and Collection Agent will
use contributor data filed in the September consolidated worksheet to
develop the fund factor and should use the contributor data filed in
the April consolidated worksheet to perform a ``true-up'' for the
contributions in July 2000.41 Thereafter, the NANP funding
period will return to the twelve month cycle from July to June with
contributions based on the April filing of the worksheet.
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\41\ A ``true-up'' will be necessary because the September
worksheet reports only half year revenue data and because it may not
collect data from all NANP contributors, e.g., some
telecommunications carriers that are de minimis for universal
service purposes will not file the September worksheet. We
nevertheless expect that the revisions performed in the ``true-up''
will be minor in terms of contributors added and contributions
adjusted.
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C. Minimum and Fixed Annual Contributions to TRS and NANPA Mechanisms
30. We modify our proposals and amend our rules to reduce
substantially the one hundred dollar minimum contributions to a twenty-
five dollar minimum. Our experience with the TRS and NANP mechanisms
persuades us that it is possible to lower the one hundred dollar
minimum while protecting the administrative integrity and efficiency of
the TRS and NANP mechanisms.
V. Procedural Matters
A. Final Paperwork Reduction Act Analysis
31. As required by the Paperwork Reduction Act of 1995, the
Contributor Reporting Requirements Notice, 63 FR 54090 (October 8,
1998), invited the
[[Page 41325]]
general public and the Office of Management and Budget (OMB) to comment
on the proposed information collection requirements contained in the
Notice, in particular, the Telecommunications Reporting Worksheet. On
December 9, 1998, OMB approved the proposed information collection, as
submitted to OMB.42 In this Report and Order, we adopt the
proposed Telecommunications Reporting Worksheet, but modify our
proposal to reflect comments received from OMB and other commenters.
The revised Telecommunications Reporting Worksheet is subject to
approval by OMB. The worksheet that we adopt in this Order reflects our
efforts to collect the information necessary to implement the
congressional directives, while reducing to the lowest possible level
the burden on carriers and service providers.43
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\42\ In its approval of the proposed worksheet, OMB requests
that the Commission address several issues. See Section V.A. of the
Order for a discussion of those issues.
\43\ See Sections III.B. of the Order (discussing data requested
in the worksheet); and V.A. of the Order (discussing comments on the
proposed information collections).
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B. Final Regulatory Flexibility Act Analysis
32. As required by the Regulatory Flexibility Act
(RFA),44 the Commission has prepared a Final Regulatory
Flexibility Analysis (FRFA) of the possible significant economic impact
on small entities of the policies and rules adopted in this Order. A
copy of this FRFA is set forth as part of this summary. The Office of
Public Affairs, Reference Operations Division, will send a copy of this
Order, including the FRFA, to the Chief Counsel for Advocacy of the
Small Business Administration.
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\44\ See 5 U.S.C. 604. The RFA, see 5 U.S.C. 601 et. seq., has
been amended by the Contract With America Advancement Act of 1996,
Public Law 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the
CWAAA is the Small Business Regulatory Enforcement Fairness Act of
1996 (SBREFA).
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VI. Ordering Clauses
33. Accordingly, it is ordered, pursuant to sections 1, 4(i), 4(j),
11, 201-205, 210, 214, 218, 225, 251, 254, 303(r), 332, and 403 of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j),
161, 201-205, 210, 214, 218, 225, 251, 254, 303(r), 332 and 403 that
this Order is hereby Adopted.
34. It is further ordered that the rule changes set forth in
Appendix B are hereby adopted, effective thirty (30) days from the date
of publication in the Federal Register. The information collection
adopted herein is contingent upon approval by the Office of Management
and Budget, but, in any event, will not become effective before thirty
(30) days after publication in the Federal Register.
35. It is further ordered that the Commission's Office of Public
Affairs, Reference Operations Division, shall send a copy of this
order, including the Final Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small Business Administration.
Final Regulatory Flexibility Act Analysis
36. In compliance with the Regulatory Flexibility Act
(RFA),45 an Initial Regulatory Flexibility Analysis (IRFA)
was incorporated into the Contributor Reporting Requirements Notice, 63
FR 54090 (October 8, 1998). The Commission sought written public
comment on the proposals in the Notice, including comment on the IRFA.
The comments received are discussed below. This present Final
Regulatory Flexibility Analysis (FRFA) conforms to the
RFA.46
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\45\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et. seq., has
been amended by the Contract With America Advancement Act of 1996,
Public Law 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the
CWAAA is the Small Business Regulatory Enforcement Fairness Act of
1996 (SBREFA).
\46\ See 5 U.S.C. 604.
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I. Need for, and Objectives of, the Contributor Reporting Requirements
Order:
37. The Commission undertakes this examination of its contributor
reporting requirements 47 as a part of its 1998 biennial
review of regulations as required by section 11 of the Communications
Act, as amended.48 This Order simplifies the Commission's
filing requirements by consolidating several different forms currently
filed under our existing rules associated with the Telecommunications
Relay Services (TRS) Fund,49 federal universal service
support mechanisms,50 the cost recovery mechanism for the
North American Numbering Plan (NANP) administration,51 and
the cost recovery mechanism for long-term local number portability
(LNP) administration.52 This Order also establishes end-user
telecommunications revenues as the basis for contributions to the NANP
and TRS mechanisms--making consistent the revenue bases for all four
support and cost recovery mechanisms. Our objective is to reduce or
eliminate unnecessary or duplicative regulatory requirements,
consistent with section 11 of the Act,53 and the
Telecommunications Act of 1996.54
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\47\ See 47 CFR 64.601 et seq.; 47 CFR 54.1 et seq.; 47 CFR 52.1
et seq.; 47 CFR 52.21 et seq.
\48\ 47 U.S.C. 161.
\49\ 47 CFR 64.601 et seq.
\50\ 47 CFR 54.1 et seq., 69.1 et seq.
\51\ 47 CFR 52.1 et seq.
\52\ 47 CFR 52.21 et seq.
\53\ 47 U.S.C. 161.
\54\ Telecommunications Act of 1996, Public Law 104-104, 110
Stat. 56 (1996 Act), codified at 47 U.S.C. 151 et seq. See Joint
Explanatory Statement of the Committee of Conference, S. Conf. Rep.
No. 230, 104th Cong., 2d Sess. 113 (1996) (Joint Explanatory
Statement).
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II. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
38. Only one party filed comments addressing the Commission's
compliance with the RFA,55 but many parties commented on the
Commission's proposals to streamline the Commission's reporting
requirements. As noted above, the record provided by all of these
commenting parties clearly supports the Commission's efforts to reduce
the amount of paperwork required by the current contributor reporting
requirements.56 Consistent with those comments, this Order
reduces significantly the amount of paperwork required of
telecommunications carriers.
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\55\ See GST Comments at 15.
\56\ See Section III.B. (discussing use of a consolidated
worksheet) of the Order.
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39. In comments to the Notice, GST argues that the proposed
Telecommunications Reporting Worksheet is particularly burdensome for
small carriers because it assumes that small carriers have developed
sophisticated accounting infrastructure.57 We disagree with
GST's assessment and note that the worksheet provides flexibility for
carriers that do not have sophisticated accounting systems. In contrast
to GST's portrayal, the categories of revenue sought in the worksheet
correspond to major categories of service, reflecting our expectation
that most carriers track the relative magnitudes of their major product
offerings for internal management reporting and cost accounting
purposes. GST offers no evidence to the contrary. The worksheet
collects the minimum amount of information necessary to ensure that
individual carriers and segments of the industry are contributing on a
fair and equitable basis. Further, the worksheet and its instructions
incorporate alternative, less burdensome approaches where it has been
determined that supplying certain information is particularly
burdensome for certain carriers. Thus, for example, the worksheet
permits carriers to use good
[[Page 41326]]
faith estimates to determine interstate and international revenues
where these figures cannot be directly determined from corporate books
of account or subsidiary records. Similarly, we adopt a streamlined
version of the worksheet to satisfy the September universal service
filing and to reduce costs for carriers.
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\57\ See GST Comments at 7, 9, 15.
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40. While not in direct response to the IRFA, both NECA and
Blooston encourage the Commission not to implement an electronic filing
system that would require costly investments by small
carriers.58 We agree that proposals for electronic filing of
the Telecommunications Reporting Worksheet should not require expensive
start-up costs for filers, so that all carriers, including small
entities, should be able to utilize a more efficient
system.59
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\58\ NECA Comments at 4; Blooston Reply Comments at 9.
\59\ See Section III.I. (discussing electronic filing) of the
Order.
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IV. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply:
41. The Commission's contributor reporting requirements apply to a
wide range of entities, including all telecommunications carriers and
other providers of interstate telecommunications that offer
telecommunications for a fee.60 Thus, we expect that the
rules adopted in this Order will have a positive economic impact on a
substantial number of small entities. Based on the number of carriers
that file the existing forms--and this Order does not increase the
number of entities that must comply with these requirements--we predict
that not more than 5,000 entities, total, will file the worksheet. Of
those 5,000 potential filers, we do not know how many are small
entities, but we offer below a detailed estimate of the number of small
entities within each of several major carrier-type categories. We
state, again, that the economic impact of these proposals is, of
course, a positive and beneficial impact, in the form of reduced
regulatory burdens and recordkeeping requirements, for these entities.
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\60\ 47 CFR 52.17 (applying to all telecommunications carriers),
52.32 (applying to all telecommunications carriers), 54.703
(applying to every telecommunications carrier that provides
interstate telecommunications services, every provider of interstate
telecommunications that offers telecommunications for a fee on a
non-common carrier basis, and certain payphone providers),
64.604(c)(4)(iii)(A) (applying to every carrier providing interstate
telecommunications services). We note that the Commission's rules
for universal service exempt certain small contributors, i.e.,
contributors that have revenue below a stated threshold. 47 CFR
54.705.
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42. To estimate the number of small entities that would benefit
from this positive economic impact, we first consider the statutory
definition of ``small entity'' under the RFA. The RFA generally defines
``small entity'' as having the same meaning as the term ``small
business,'' ``small organization,'' and ``small governmental
jurisdiction.'' 61 In addition, the term ``small business''
has the same meaning as the term ``small business concern'' under the
Small Business Act, unless the Commission has developed one or more
definitions that are appropriate to its activities.62 Under
the Small Business Act, a ``small business concern'' is one that: (1)
is independently owned and operated; (2) is not dominant in its field
of operation; and (3) meets any additional criteria established by the
Small Business Administration (SBA).63 The SBA has defined a
small business for Standard Industrial Classification (SIC) categories
4812 (Radiotelephone Communications) and 4813 (Telephone
Communications, Except Radiotelephone) to be small entities when they
have no more than 1,500 employees.64 We first discuss the
number of small telephone companies falling within these SIC
categories, then attempt to refine further those estimates to
correspond with the categories of telephone companies that are commonly
used under our rules.
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\61\ 5 U.S.C. 601(6).
\62\ 5 U.S.C. 601(3) (incorporating by reference the definition
of ``small business concern'' in 5 U.S.C. 632). Pursuant to 5 U.S.C.
601(3), the statutory definition of a small business applies
``unless an agency after consultation with the Office of Advocacy of
the Small Business Administration and after opportunity for public
comment, establishes one or more definitions of such term which are
appropriate to the activities of the agency and publishes such
definition in the Federal Register.''
\63\ 15 U.S.C. 632. See, e.g., Brown Transport Truckload, Inc.
v. Southern Wipers, Inc., 176 B.R. 82 (N.D. Ga. 1994).
\64\ 13 CFR 121.201.
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43. 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 Carrier Locator report,
derived from filings made in connection with the Telecommunications
Relay Service (TRS).65 According to data in the most recent
report, there are 3,604 interstate carriers.66 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.
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\65\ FCC, Carrier Locator: Interstate Service Providers, Figure
1 (Jan. 1999) (Carrier Locator). See also 47 CFR 64.601 et seq.
\66\ Carrier Locator at Fig. 1.
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44. 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.'' 67
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\67\ See 13 CFR 121.201, Standard Industrial Classification
(SIC) 4813. Since the time of the Commission's 1996 decision,
Implementation of the Local Competition Provisions in the
Telecommunications Act of 1996, First Report and Order, 11 FCC Rcd
15499, 16144-45 (1996), 61 FR 45476 (August 29, 1996), the
Commission has consistently addressed in its regulatory flexibility
analyses the impact of its rules on such ILECs.
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45. Total Number of Telephone Companies Affected. 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.68 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
incumbent LECs because they are not ``independently owned and
operated.'' 69 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
[[Page 41327]]
reasonable to conclude, therefore, that fewer than 3,497 telephone
service firms are small entity telephone service firms or small
incumbent LECs that may be affected by the decisions and rule changes
adopted in this Order.
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\68\ United States Department of Commerce, Bureau of the Census,
1992 Census of Transportation, Communications, and Utilities:
Establishment and Firm Size, at Firm Size 1-123 (1995) (``1992
Census'').
\69\ 15 U.S.C. 632(a)(1).
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46. Wireline Carriers and Service Providers. SBA has developed a
definition of small entities for telephone communications companies
other than radiotelephone companies. The Census Bureau reports that,
there were 2,321 such telephone companies in operation for at least one
year at the end of 1992.70 According to SBA's definition, a
small business telephone company other than a radiotelephone company is
one employing no more than 1,500 persons.71 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 incumbent LECs. 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 and rule changes adopted in this Order.
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\70\ 1992 Census, supra, at Firm Size 1-123.
\71\ 13 CFR 121.201, SIC Code 4813.
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47. Local Exchange Carriers, Interexchange Carriers, Competitive
Access Providers, Operator Service Providers, and Resellers. Neither
the Commission nor SBA has developed a definition of small local
exchange carriers (LECs), interexchange carriers (IXCs), competitive
access providers (CAPs), operator service providers (OSPs), or
resellers. The closest applicable definition for these carrier-types
under SBA rules is for telephone communications companies other than
radiotelephone (wireless) companies.72 The most reliable
source of information regarding the number of these carriers nationwide
of which we are aware appears to be the data that we collect annually
in connection with the Telecommunications Relay Service
(TRS).73 According to our most recent data, there are 1,410
LECs, 151 IXCs, 129 CAPs, 32 OSPs, and 351 resellers.74
Although it seems certain that some of these carriers 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 these carriers that would qualify as small business concerns under
SBA's definition. Consequently, we estimate that there are fewer than
1,410 small entity LECs or small incumbent LECs, 151 IXCs, 129 CAPs, 32
OSPs, and 351 resellers that may be affected by the decisions and rule
changes adopted in this Order.
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\72\ 13 CFR 121.210, SIC Code 4813.
\73\ See 47 CFR 64.601 et seq.; Carrier Locator at Fig. 1.
\74\ Carrier Locator at Fig. 1. The total for resellers includes
both toll resellers and local resellers.
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48. 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 1992.75
According to SBA's definition, a small business radiotelephone company
is one employing no more than 1,500 persons.76 The Census
Bureau also reported that 1,164 of those radiotelephone companies had
fewer 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 and 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 and rule changes
adopted in this Order.
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\75\ United States Department of Commerce, Bureau of the Census,
1992 Census of Transportation, Communications, and Utilities:
Establishment and Firm Size, at Firm Size 1-123 (1995) (``1992
Census'').
\76\ 13 CFR 121.201, SIC Code 4812.
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49. Cellular, PCS, SMR and Other Mobile Service Providers. In an
effort to further refine our calculation of the number of
radiotelephone companies that may be affected by the rules adopted
herein, we consider the data that we collect annually in connection
with the TRS for the subcategories Wireless Telephony (which includes
Cellular, PCS, and SMR) and Other Mobile Service Providers. Neither the
Commission nor the SBA has developed a definition of small entities
specifically applicable to these broad subcategories, so we will
utilize the closest applicable definition under SBA rules--which, for
both categories, is for telephone companies other than radiotelephone
(wireless) companies.77 To the extent that the Commission
has adopted definitions for small entities providing PCS and SMR
services, we discuss those definitions below. According to our most
recent TRS data, 732 companies reported that they are engaged in the
provision of Wireless Telephony services and 23 companies reported that
they are engaged in the provision of Other Mobile
Services.78 Although it seems certain that some of these
carriers 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 Wireless Telephony Providers and Other Mobile
Service Providers, except as described below, that would qualify as
small business concerns under SBA's definition. Consequently, we
estimate that there are fewer than 732 small entity Wireless Telephony
Providers and fewer than 23 small entity Other Mobile Service Providers
that might be affected by the decisions and rule changes adopted in
this Order.
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\77\ Id.
\78\ Carrier Locator at Fig. 1.
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50. Broadband PCS Licensees. 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.79 For Block F, an additional classification for
``very small business'' was added, and is defined as an entity that,
together with its affiliates, has average gross revenues of not more
than $15 million for the preceding three calendar years.80
These regulations defining ``small entity'' in the context of broadband
PCS auctions have been approved by SBA.81 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
[[Page 41328]]
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 estimate that the number of small broadband PCS licenses 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 PCS providers as
defined by the SBA and the Commissioner's auction rules.
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\79\ See Amendment of Parts 20 and 24 of the Commission's
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket
No. 96-59, Paras. 57-60 (June 24, 1996), 61 FR 33859 (July 1, 1996);
see also 47 CFR 24.720(b).
\80\ Id., at para. 60.
\81\ Implementation of Section 309(j) of the Communications
Act--Competitive Bidding, PP Docket No. 93-253, Fifth Report and
Order, 9 FCC Rcd 5532, 5581-84, 59 FR 63210 (December 7, 1994).
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51. 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.
The definition of a ``small entity'' in the context of 800 MHz SMR has
been approved by the SBA,\82\ and approval for the 900 MHz SMR
definition has been sought. The rules proposed in this FRFA 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 of
less than $15 million. We assume, for purposes of this FRFA, that all
of the extended implementation authorizations may be held by small
entities, that may be affected by the decisions and rule changes
adopted in this Order.
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\82\ See Amendment of Parts 2 and 90 of the Commission's Rules
to Provide for the Use of 200 Channels Outside the Designated Filing
Areas in the 896-901 MHz and the 935-940 MHz Bands Allotted to the
Specialized Mobile Radio Pool, PR Docket No. 89-583, Second Order on
Reconsideration and Seventh Report and Order, 11 FCC Rcd 2639, 2693-
702, 60 FR 48913 (September 21, 1995); Amendment of Part 90 of the
Commission's Rules to Facilitate Future Development of SMR Systems
in the 800 MHz Frequency Band, PR Docket No. 93-144, First Report
and Order, Eighth Report and Order, and Second Further Notice of
Proposed Rulemaking, 11 FCC Rcd 1463, 61 FR 06212 (February 16,
1996).
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52. 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 that may be affected by the decisions and rule changes
adopted in this Order includes these 60 small entities. No auctions
have been held for 800 MHz geographic area SMR licenses. Therefore, no
small entities currently hold these licenses. A total of 525 licenses
will be awarded for the upper 200 channels in the 800 MHz geographic
area SMR auction. The Commission, however, has not yet determined how
many licenses will be awarded for the lower 230 channels in the 800 MHz
geographic area SMR auction. There is no basis, moreover, on which to
estimate how many small entities will win these licenses. Given that
nearly all radiotelephone companies have fewer than 1,000 employees and
that no reliable estimate of the number of prospective 800 MHz
licensees can be made, we assume, for purposes of this FRFA, that all
of the licenses may be awarded to small entities who may be affected by
the decisions and rule changes adopted in this Order.
53. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service
has both Phase I and Phase II licenses. There are approximately 1,515
such non-nationwide licensees and four nationwide licensees currently
authorized to operate in the 220 MHz band. The Commission has not
developed a definition of small entities specifically applicable to
such incumbent 220 MHZ Phase I licensees. To estimate the number of
such licensees that are small businesses, we apply the definition under
the SBA rules applicable to Radiotelephone Communications
companies.\83\ According to the Bureau of the Census, only 12
radiotelephone firms out of a total of 1,178 such firms which operated
during 1992 had 1,000 or more employees.\84\ Therefore, if this general
ratio continues to 1999 in the context of Phase I 220 MHz licensees, we
estimate that nearly all such licensees are small businesses under the
SBA's definition.
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\83\ 13 CFR 121.201, SIC Code 4812. This definition provides
that a small entity is a radiotelephone company employing no more
than 1,500 persons.
\84\ U.S. Bureau of the Census, U.S. Department of Commerce,
1992 Census of Transportation, Communications, and Utilities, UC92-
S-1, Subject Series, Establishment and Firm Size, Table 5,
Employment Size of Firms; 1992, SIC code 4812 (issued May 1995).
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54. 220 MHz Radio Service--Phase II Licensees. The Phase II 220 MHz
service is a new service, and is subject to spectrum auctions. The
Commission has adopted criteria for defining small businesses and very
small businesses for purposes of determining their eligibility for
special provisions such as bidding credits and installment payments. We
have defined a small business as an entity that, together with its
affiliates and controlling principals, has average gross revenues not
exceeding $15 million for the preceding three years. Additionally, a
very small business is defined as an entity that, together with its
affiliates and controlling principals, has average gross revenues that
are not more than $3 million for the preceding three years. An auction
of Phase II licenses commenced on September 15, 1998, and closed on
October 22, 1998. 908 licenses were auctioned in 3 different-sized
geographic areas: three nationwide licenses, 30 Regional Economic Area
Group Licenses, and 875 Economic Area (EA) Licenses. Of the 908
licenses auctioned, 693 were sold. Companies claiming small business
status won: one of the Nationwide licenses, 67% of the Regional
licenses, and 54% of the EA licenses. As of January 22, 1999, the
Commission announced that it was prepared to grant 654 of the Phase II
licenses won at auction.
55. 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.\85\ 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.\86\ At present,
there are approximately 24,000 Private Paging licenses and 74,000
Common Carrier Paging licenses. According to the most recent Carrier
Locator data, 137 carriers reported that they were engaged in the
provision of either paging or messaging services, which are placed
together in the data.\87\ 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 137 small paging carriers that may
be affected by the decisions
[[Page 41329]]
and rule changes adopted in this Order. We estimate that the majority
of private and common carrier paging providers would qualify as small
entities under the SBA definition.
---------------------------------------------------------------------------
\85\ See 47 CFR 20.9(a)(1) (noting that private paging services
may be treated as common carriage services).
\86\ 13 CFR 121.201, SIC Code 4812.
\87\ Carrier Locator at Fig. 1.
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56. Narrowband PCS. The Commission has auctioned nationwide and
regional licenses for narrowband PCS. There are 11 nationwide and 30
regional licensees for narrowband PCS. The Commission does not have
sufficient information to determine whether any of these licensees are
small businesses within the SBA-approved definition for radiotelephone
companies. At present, there have been no auctions held for the major
trading area (MTA) and basic trading area (BTA) narrowband PCS
licenses. The Commission anticipates a total of 561 MTA licenses and
2,958 BTA licenses will be awarded by auction. Such auctions have not
yet been scheduled, however. Given that nearly all radiotelephone
companies have no more than 1,500 employees and that no reliable
estimate of the number of prospective MTA and BTA narrowband licensees
can be made, we assume, for purposes of this FRFA, that all of the
licenses will be awarded to small entities, as that term is defined by
the SBA.
57. Rural Radiotelephone Service. The Commission has not adopted a
definition of small entity specific to the Rural Radiotelephone
Service.\88\ A significant subset of the Rural Radiotelephone Service
is the Basic Exchange Telephone Radio Systems (BETRS).\89\ We will use
the SBA's definition applicable to radiotelephone companies, i.e., an
entity employing no more than 1,500 persons.\90\ There are
approximately 1,000 licensees in the Rural Radiotelephone Service, and
we estimate that almost all of them qualify as small entities under the
SBA's definition.
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\88\ The service is defined in section 22.99 of the Commission's
rules, 47 CFR 22.99.
\89\ BETRS is defined in sections 22.757 and 22.759 of the
Commission's rules, 47 CFR 22.757, 22.759.
\90\ 13 CFR 121.201, SIC Code 4812.
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58. Air-Ground Radiotelephone Service. The Commission has not
adopted a definition of small entity specific to the Air-Ground
Radiotelephone Service.\91\ Accordingly, we will use the SBA's
definition applicable to radiotelephone companies, i.e., an entity
employing no more than 1,500 persons.\92\ There are approximately 100
licensees in the Air-Ground Radiotelephone Service, and we estimate
that almost all of them qualify as small entities under the SBA
definition.
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\91\ The service is defined in section 22.99 of the Commission's
rules, 47 CFR 22.99.
\92\ 13 CFR 121.201, SIC Code 4812.
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59. Private Land Mobile Radio (PLMR). PLMR systems serve an
essential role in a range of industrial, business, land transportation,
and public safety activities.\93\ These radios are used by companies of
all sizes operating in all U.S. business categories. The Commission has
not developed a definition of small entity specifically applicable to
PLMR licensees due to the vast array of PLMR users. For the purpose of
determining whether a licensee is a small business as defined by the
SBA, each licensee would need to be evaluated within its own business
area.
---------------------------------------------------------------------------
\93\ See 47 CFR 20.9(a)(2) (noting that certain Industrial/
Business Pool service may be treated as common carriage service).
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60. The Commission is unable at this time to estimate the number
of, if any, small businesses which could be impacted by the rules.
However, the Commission's 1994 Annual Report on PLMRs \94\ indicates
that at the end of fiscal year 1994 there were 1,087,267 licensees
operating 12,481,989 transmitters in the PLMR bands below 512 MHz.
Because any entity engaged in a commercial activity is eligible to hold
a PLMR license, the proposed rules in this context could potentially
impact every small business in the United States.
---------------------------------------------------------------------------
\94\ Federal Communications Commission, 60th Annual Report,
Fiscal Year 1994, at 116.
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61. Fixed Microwave Services. Microwave services include common
carrier,\95\ private-operational fixed,\96\ and broadcast auxiliary
radio services.\97\ At present, there are approximately 22,015 common
carrier fixed licensees in the microwave services. The Commission has
not yet defined a small business with respect to microwave services.
For purposes of this FRFA, we will utilize the SBA's definition
applicable to radiotelephone companies--i.e., an entity with no more
than 1,500 persons.\98\ We estimate, for this purpose, that all of the
Fixed Microwave licensees (excluding broadcast auxiliary licensees)
would qualify as small entities under the SBA definition for
radiotelephone companies.
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\95\ 47 CFR 101 et seq. (formerly, Part 21 of the Commission's
rules).
\96\ Persons eligible under Parts 80 and 90 of the Commission's
rules can use Private Operational-Fixed Microwave services. See 47
CFR Parts 80 and 90. Stations in this service are called
operational-fixed to distinguish them from common carrier and public
fixed stations. Only the licensee may use the operational-fixed
station, and only for communications related to the licensee's
commercial, industrial, or safety operations.
\97\ Auxiliary Microwave Service is governed by Part 74 of Title
47 of the Commission's Rules. See 47 CFR 74 et seq. Available to
licensees of broadcast stations and to broadcast and cable network
entities, broadcast auxiliary microwave stations are used for
relaying broadcast television signals from the studio to the
transmitter, or between two points such as a main studio and an
auxiliary studio. The service also includes mobile TV pickups, which
relay signals from a remote location back to the studio.
\98\ 13 CFR 121.201, SIC Code 4812.
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62. Offshore Radiotelephone Service. This service operates on
several UHF TV broadcast channels that are not used for TV broadcasting
in the coastal area of the states bordering the Gulf of Mexico.\99\ At
present, there are approximately 55 licensees in this service. We are
unable at this time to estimate the number of licensees that would
qualify as small entities under the SBA's definition for radiotelephone
communications.
---------------------------------------------------------------------------
\99\ This service is governed by Subpart I of Part 22 of the
Commission's Rules. See 47 CFR 22.1001-22.1037.
---------------------------------------------------------------------------
63. Wireless Communications Services. This service can be used for
fixed, mobile, radio location and digital audio broadcasting satellite
uses. The Commission defined ``small business'' for the wireless
communications services (WCS) auction as an entity with average gross
revenues of $40 million for each of the three preceding years, and a
``very small business'' as an entity with average gross revenues of $15
million for each of the three preceding years. The Commission auctioned
geographic area licenses in the WCS service. In the auction, there were
seven winning bidders that qualified as very small business entities,
and one that qualified as a small business entity. We conclude that the
number of geographic area WCS licensees that may be affected by the
decisions and rule changes adopted in this Order includes these eight
entities.
IV. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements:
64. The decisions and rule changes adopted in this Order will
reduce the reporting and recordkeeping requirements on
telecommunications service providers regulated under the Communications
Act. As currently structured, telecommunications carriers and other
service providers having interstate revenues are required to file, at
different times throughout the year, a number of contributor reporting
worksheets that often reflect duplicative reporting requirements. In
this Order, the Commission reduces these regulatory burdens by
combining the multiple worksheets into one unified Telecommunications
Reporting Worksheet. In addition, the Commission
[[Page 41330]]
further reduces carrier filing burdens by allowing carriers to use the
proposed Telecommunications Reporting Worksheet to designate agents for
service of process pursuant to section 413 of the Communications Act of
1934, as amended.\100\ We expect that, by adopting these proposals,
telecommunications service providers will experience an appreciable
reduction in reporting, recordkeeping, and other compliance burdens.
---------------------------------------------------------------------------
\100\ 47 U.S.C. 413.
---------------------------------------------------------------------------
V. Steps Taken to Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered:
65. In the Contributor Reporting Requirements Notice, 63 FR 54090
(October 8, 1998), the Commission sought comment on ways to simplify
its contributor reporting requirements and, in particular, whether a
unified worksheet would reduce regulatory and administrative burden on
reporting carriers.\101\ Commenters were nearly unanimous in their
support of the Commission's proposals in the Notice. In response to
numerous proposals to modify the data collected in the worksheet, the
Commission developed the final Telecommunications Reporting Worksheet
so that it will collect the minimum information necessary to ensure the
equitable and efficient funding of the support and cost recovery
mechanisms.\102\ Accordingly, we conclude that the impact of this
proceeding should be beneficial to small businesses because the
decisions and rule changes adopted in this Order will reduce the
reporting or recordkeeping requirements on all communications common
carriers.
---------------------------------------------------------------------------
\101\ See Contributor Reporting Requirements Notice, 13 FCC Rcd
19295, 19304, 63 FR 54090 (October 8, 1998).
\102\ See Sections III. B. of the Order (discussing the use of a
consolidated worksheet), and III.D.2.b. of the Order (discussing the
September universal service filing).
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Report to Congress: The Commission will send a copy of the
Contributor Reporting Requirements Order, including this FRFA, in a
report to be sent to Congress pursuant to the Small Business Regulatory
Enforcement Fairness Act of 1996.\103\ In addition, the Commission will
send a copy of the Order, including this FRFA, to the Chief Counsel for
Advocacy of the Small Business Administration. A copy of the Order and
FRFA (or summaries thereof) will also be published in the Federal
Register.\104\
---------------------------------------------------------------------------
\103\ See 5 U.S.C. 801(a)(1)(A).
\104\ See 5 U.S.C. 604(b).
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List of Subjects
47 CFR Part 1
Communications common carriers, Reporting and recordkeeping
requirements, Telecommunications, Telephone.
47 CFR Part 52
Communications common carriers, Numbering administration, Number
portability, Reporting and recordkeeping requirements,
Telecommunications, Telephone.
47 CFR Part 54
Communications common carriers, Reporting and recordkeeping
requirements, Telecommunications, Telephone, Universal service.
Communications common carriers, Reporting and recordkeeping
requirements, Telecommunications, Telephone, Universal service.
47 CFR Part 64
Communications common carriers, Reporting and recordkeeping
requirements, Telecommunications, Telecommunications relay services,
Telephone.
Federal Communications Commission.
Shirley S. Suggs,
Chief, Publications Branch.
Rule Changes
Parts 1, 52, 54, and 64 of the Code of Federal Regulations are
amended as follows:
PART 1--PRACTICE AND PROCEDURE
1. The authority citation for part 1 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, and 303(r),
309.
2. Section 1.47(h) is revised to read as follows:
Sec. 1.47 Service of documents and proof of service.
* * * * *
(h) Every common carrier subject to the Communications Act of 1934,
as amended, shall designate an agent in the District of Columbia, and
may designate additional agents if it so chooses, upon whom service of
all notices, process, orders, decisions, and requirements of the
Commission may be made for and on behalf of said carrier in any
proceeding before the Commission. Such designation shall include, for
both the carrier and its designated agents, a name, business address,
telephone or voicemail number, facsimile number, and, if available,
Internet e-mail address. The carrier shall additionally list any other
names by which it is known or under which it does business, and, if the
carrier is an affiliated company, the parent, holding, or management
company. Within thirty (30) days of the commencement of provision of
service, each carrier shall file such information with the Formal
Complaints and Investigations Branch of the Common Carrier Bureau.
Carriers may file a hard copy of the relevant portion of the
Telecommunications Reporting Worksheet, as delineated by the Commission
in the Federal Register, to satisfy this requirement. Each
Telecommunications Reporting Worksheet filed annually by a common
carrier must contain a name, business address, telephone or voicemail
number, facsimile number, and, if available, Internet e-mail address
for its designated agents, regardless of whether such information has
been revised since the previous filing. Carriers must notify the
Commission within one week of any changes in their designation
information by filing revised portions of the Telecommunications
Reporting Worksheet with the Formal Complaints and Investigations
Branch of the Common Carrier Bureau. A paper copy of this designation
list shall be maintained in the Office of the Secretary of the
Commission. Service of any notice, process, orders, decisions or
requirements of the Commission may be made upon such carrier by leaving
a copy thereof with such designated agent at his office or usual place
of residence. If a carrier fails to designate such an agent, service of
any notice or other process in any proceeding before the Commission, or
of any order, decision, or requirement of the Commission, may be made
by posting such notice, process, order, requirement, or decision in the
Office of the Secretary of the Commission.
PART 52--NUMBERING
3. The authority citation for part 52 continues to read as follows:
Authority: Sec. 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, 201-205, 207-209, 218, 225-7, 251-2, 271 and 332, 48
Stat. 1070, as amended, 1077; 47 U.S.C. 153, 154, 201-205, 207-09,
218, 225-7, 251-2, 271 and 332 unless otherwise noted.
4. Section 52.16 is amended by revising paragraphs (b) and (c) to
read as follows:
Sec. 52.16 Billing and Collection Agent.
* * * * *
[[Page 41331]]
(b) Distribute to carriers the ``Telecommunications Reporting
Worksheet,'' described in Sec. 52.17(b).
(c) Keep confidential all data obtained from carriers and not
disclose such data in company-specific form unless authorized by the
Commission. Subject to any restrictions imposed by the Chief of the
Common Carrier Bureau, the B & C Agent may share data obtained from
carriers with the administrators of the universal service support
mechanism (See 47 CFR 54.701 of this chapter), the TRS Fund (See 47 CFR
64.604(c)(4)(iii)(H) of this chapter), and the local number portability
cost recovery (See 47 CFR 52.32). The B & C Agent shall keep
confidential all data obtained from other administrators. The B & C
Agent shall use such data, from carriers or administrators, only for
calculating, collecting and verifying payments. The Commission shall
have access to all data reported to the Administrator. Contributors may
make requests for Commission nondisclosure of company-specific revenue
information under Sec. 0.459 of this chapter by so indicating on the
Telecommunications Reporting Worksheet at the time that the subject
data are submitted. The Commission shall make all decisions regarding
nondisclosure of company-specific information.
* * * * *
5. Section 52.17 is revised to read as follows:
Sec. 52.17 Costs of number administration.
All telecommunications carriers in the United States shall
contribute on a competitively neutral basis to meet the costs of
establishing numbering administration.
(a) Contributions to support numbering administration shall be the
product of the contributors' end-user telecommunications revenues for
the prior calendar year and a contribution factor determined annually
by the Chief of the Common Carrier Bureau; such contributions to be no
less than twenty-five dollars ($25). The contribution factor shall be
based on the ratio of expected number administration expenses to end-
user telecommunications revenues. Carriers that have no end-user
telecommunications revenues shall contribute twenty-five dollars ($25).
In the event that contributions exceed or are inadequate to cover
administrative costs, the contribution factor for the following year
shall be adjusted by an appropriate amount.
(b) All telecommunications carriers in the United States shall
complete and submit a ``Telecommunications Reporting Worksheet'' (as
published by the Commission in the Federal Register), which sets forth
the information needed to calculate contributions referred to in
paragraph (a) of this section. The worksheet shall be certified to by
an officer of the contributor, and subject to verification by the
Commission or the B & C Agent at the discretion of the Commission. The
Chief of the Common Carrier Bureau may waive, reduce, modify, or
eliminate contributor reporting requirements that prove unnecessary and
require additional reporting requirements that the Bureau deems
necessary to the sound and efficient administration of the number
administration cost recovery.
6. Section 52.32 is amended by revising paragraphs (b) and (c) and
by adding paragraph (d) to read as follows:
Sec. 52.32 Allocation of the shared costs of long-term number
portability.
* * * * *
(b) All telecommunications carriers providing service in the United
States shall complete and submit a ``Telecommunications Reporting
Worksheet'' (as published by the Commission in the Federal Register),
which sets forth the information needed to calculate contributions
referred to in paragraph (a) of this section. The worksheet shall be
certified to by an officer of the contributor, and subject to
verification by the Commission or the administrator at the discretion
of the Commission. The Chief of the Common Carrier Bureau may waive,
reduce, modify, or eliminate contributor reporting requirements that
prove unnecessary and require additional reporting requirements that
the Bureau deems necessary to the sound and efficient administration of
long-term number portability.
(c) Local number portability administrators shall keep all data
obtained from contributors confidential and shall not disclose such
data in company-specific form unless directed to do so by the
Commission. Subject to any restrictions imposed by the Chief of the
Common Carrier Bureau, the local number portability administrators may
share data obtained from carriers with the administrators of the
universal service support mechanism (See 47 CFR 54.701 of this
chapter), the TRS Fund (See 47 CFR 64.604(c)(4)(iii)(H) of this
chapter), and the North American Numbering Plan cost recovery (See 47
CFR 52.16). The local number portability administrators shall keep
confidential all data obtained from other administrators. The
administrators shall use such data, from carriers or administrators,
only for purposes of administering local number portability. The
Commission shall have access to all data reported to the Administrator.
Contributors may make requests for Commission nondisclosure of company-
specific revenue information under Sec. 0.459 of this chapter by so
indicating on the Telecommunications Reporting Worksheet at the time
that the subject data are submitted. The Commission shall make all
decisions regarding nondisclosure of company-specific information.
(d) Once a telecommunications carrier has been allocated, pursuant
to paragraph (a)(1) or (a)(2) of this section, its portion of the
shared costs of long-term number portability attributable to a regional
database, the carrier shall treat that portion as a carrier-specific
cost directly related to providing number portability.
PART 54--UNIVERSAL SERVICE
7. The authority citation for part 54 continues to read as follows:
Authority: 47 U.S.C. 1, 4(i), 201, 205, 214, and 254 unless
otherwise noted.
8. Section 54.708 is revised to read as follows:
Sec. 54.708 De minimis exemption.
If a contributor's contribution to universal service in any given
year is less than $10,000 that contributor will not be required to
submit a contribution or Telecommunications Reporting Worksheet for
that year unless it is required to do so to by our rules governing
Telecommunications Relay Service (47 CFR 64.601 et seq. of this
chapter), numbering administration (47 CFR 52.1 et seq. of this
chapter), or shared costs of local number portability (47 CFR 52.21 et
seq. of this chapter). If a contributor improperly claims exemption
from the contribution requirement, it will subject to the criminal
provisions of sections 220(d) and (e) of the Act regarding willful
false submissions and will be required to pay the amounts withheld plus
interest.
9. Section 54.709 is amended by revising paragraphs (a)
introductory text, (a)(2), and (d) to read as follows:
Sec. 54.709 Computations of required contributions to universal
service support mechanisms.
(a) Contributions to the universal service support mechanisms shall
be based on contributors' end-user telecommunications revenues and
contribution factors determined quarterly by the Commission.
* * * * *
[[Page 41332]]
(2) The quarterly universal service contribution factors shall be
based on the ratio of total projected quarterly expenses of the
universal service support programs to total end-user telecommunications
revenues. The Commission shall determine two contribution factors, one
of which shall be applied to interstate and international end-user
telecommunications revenues and the other of which shall be applied to
interstate, intrastate, and international end-user telecommunications
revenues. The Commission shall approve the Administrator's quarterly
projected costs of universal service support programs, taking into
account demand for support and administrative expenses. The total
subject revenues shall be compiled by the Administrator based on
information contained in the Telecommunications Reporting Worksheets
described in Sec. 54.711(a).
* * * * *
(d) If a contributor fails to file a Telecommunications Reporting
Worksheet by the date on which it is due, the Administrator shall bill
that contributor based on whatever relevant data the Administrator has
available, including, but not limited to, the number of lines
presubscribed to the contributor and data from previous years, taking
into consideration any estimated changes in such data.
10. Section 54.711 is revised to read as follows:
Sec. 54.711 Contributor reporting requirements.
(a) Contributions shall be calculated and filed in accordance with
the Telecommunications Reporting Worksheet which shall be published in
the Federal Register. The Telecommunications Reporting Worksheet sets
forth information that the contributor must submit to the Administrator
on a semi-annual basis. The Commission shall announce by Public Notice
published in the Federal Register and on its website the manner of
payment and dates by which payments must be made. An officer of the
contributor must certify to the truth and accuracy of the
Telecommunications Reporting Worksheet, and the Commission or the
Administrator may verify any information contained in the
Telecommunications Reporting Worksheet at the discretion of the
Commission. Inaccurate or untruthful information contained in the
Telecommunications Reporting Worksheet may lead to prosecution under
the criminal provisions of Title 18 of the United States Code. The
Administrator shall advise the Commission of any enforcement issues
that arise and provide any suggested response.
(b) The Commission shall have access to all data reported to the
Administrator. Contributors may make requests for Commission
nondisclosure of company-specific revenue information under Sec. 0.459
of this chapter by so indicating on the Telecommunications Reporting
Worksheet at the time that the subject data are submitted. The
Commission shall make all decisions regarding nondisclosure of company-
specific information. The Administrator shall keep confidential all
data obtained from contributors, shall not use such data except for
purposes of administering the universal service support programs, and
shall not disclose such data in company-specific form unless directed
to do so by the Commission. Subject to any restrictions imposed by the
Chief of the Common Carrier Bureau, the Universal Service Administrator
may share data obtained from contributors with the administrators of
the North American Numbering Plan administration cost recovery (See 47
CFR 52.16 of this chapter), the local number portability cost recovery
(See 47 CFR 52.32 of this chapter), and the TRS Fund (See 47 CFR
64.604(c)(4)(iii)(H) of this chapter). The Administrator shall keep
confidential all data obtained from other administrators and shall not
use such data except for purposes of administering the universal
service support mechanisms.
(c) The Bureau may waive, reduce, modify, or eliminate contributor
reporting requirements that prove unnecessary and require additional
reporting requirements that the Bureau deems necessary to the sound and
efficient administration of the universal service support mechanisms.
11. Section 54.713 is revised to read as follows:
Sec. 54.713 Contributors' failure to report or to contribute.
A contributor that fails to file a Telecommunications Reporting
Worksheet and subsequently is billed by the Administrator shall pay the
amount for which it is billed. The Administrator may bill a contributor
a separate assessment for reasonable costs incurred because of that
contributor's filing of an untruthful or inaccurate Telecommunications
Reporting Worksheet, failure to file the Telecommunications Reporting
Worksheet, or late payment of contributions. Failure to file the
Telecommunications Reporting Worksheet or to submit required quarterly
contributions may subject the contributor to the enforcement provisions
of the Act and any other applicable law. The Administrator shall advise
the Commission of any enforcement issues that arise and provide any
suggested response. Once a contributor complies with the
Telecommunications Reporting Worksheet filing requirements, the
Administrator may refund any overpayments made by the contributor, less
any fees, interest, or costs.
PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
12. The authority citation for part 64 continues to read as
follows:
Authority: 47 U.S.C. 10, 201, 218, 226, 228, 332, unless
otherwise noted.
13. Section 64.604 is amended by revising paragraphs
(c)(4)(iii)(A), (B), and (I) to read as follows:
Sec. 64.604 Mandatory minimum standards.
* * * * *
(c) * * *
(4) * * *
(iii) * * *
(A) Contributions. Every carrier providing interstate
telecommunications services shall contribute to the TRS Fund on the
basis of its relative share of interstate end-user telecommunications
revenues as described herein. Contributions shall be made by all
carriers who provide interstate services, including, but not limited
to, cellular telephone and paging, mobile radio, operator services,
personal communications service (PCS), access (including subscriber
line charges), alternative access and special access, packet-switched,
WATS, 800, 900, message telephone service (MTS), private line, telex,
telegraph, video, satellite, intraLATA, international and resale
services.
(B) Contribution computations. Contributors' contribution to the
TRS Fund shall be the product of their subject revenues for the prior
calendar year and a contribution factor determined annually by the
Commission. The contribution factor shall be based on the ratio between
expected TRS Fund expenses to interstate end-user telecommunications
revenues. In the event that contributions exceed TRS payments and
administrative costs, the contribution factor for the following year
will be adjusted by an appropriate amount, taking into consideration
projected cost and usage changes. In the event that contributions are
inadequate, the fund administrator may request authority from the
Commission to borrow funds
[[Page 41333]]
commercially, with such debt secured by future years contributions.
Each subject carrier must contribute at least $25 per year. Carriers
whose annual contributions total less than $1,200 must pay the entire
contribution at the beginning of the contribution period. Carriers
whose contributions total $1,200 or more may divide their contributions
into equal monthly payments. Carriers shall complete and submit, and
contributions shall be based on, a ``Telecommunications Reporting
Worksheet'' (as published by the Commission in the Federal Register).
The worksheet shall be certified to by an officer of the contributor,
and subject to verification by the Commission or the administrator at
the discretion of the Commission. Contributors' statements in the
worksheet shall be subject to the provisions of section 220 of the
Communications Act of 1934, as amended. The fund administrator may bill
contributors a separate assessment for reasonable administrative
expenses and interest resulting from improper filing or overdue
contributions. The Chief of the Common Carrier Bureau may waive,
reduce, modify, or eliminate contributor reporting requirements that
prove unnecessary and require additional reporting requirements that
the Bureau deems necessary to the sound and efficient administration of
the TRS Fund.
* * * * *
(I) Information filed with the administrator. The administrator
shall keep all data obtained from contributors and TRS providers
confidential and shall not disclose such data in company-specific form
unless directed to do so by the Commission. Subject to any restrictions
imposed by the Chief of the Common Carrier Bureau, the TRS Fund
administrator may share data obtained from carriers with the
administrators of the universal service support mechanisms (See 47 CFR
54.701 of this chapter), the North American Numbering Plan
administration cost recovery (See 47 CFR 52.16 of this chapter), and
the long-term local number portability cost recovery (See 47 CFR 52.32
of this chapter). The TRS Fund Administrator shall keep confidential
all data obtained from other administrators. The administrator shall
not use such data, from carriers or administrators, except for purposes
of administering the TRS Fund, calculating the regulatory fees of
interstate common carriers, and aggregating such fee payments for
submission to the Commission. The Commission shall have access to all
data reported to the administrator, and authority to audit TRS
providers. Contributors may make requests for Commission nondisclosure
of company-specific revenue information under Sec. 0.459 of this
chapter by so indicating on the Telecommunications Reporting Worksheet
at the time that the subject data are submitted. The Commission shall
make all decisions regarding nondisclosure of company-specific
information.
* * * * *
[FR Doc. 99-19686 Filed 7-29-99; 8:45 am]
BILLING CODE 6712-01-P
