FCC Record, Volume 27, No. 5, Pages 3728 to 4696, April 9 - April 27, 2012 Page: 4,683
ix, 3728-4696 p. ; 28 cm.View a full description of this book.
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authorizations, nor how many of these providers have annual revenues of no more than $15 million. One
firm has over $15 million in revenues. In addition, we do not know how many of these firms have 1,500
or fewer employees.2 We assume, for purposes of this analysis, that all of the remaining existing
extended implementation authorizations are held by small entities, as that small business size standard is
approved by the SBA.
28. Broadband Radio Service and Educational Broadband Service. Broadband Radio
Service systems, previously referred to as Multipoint Distribution Service ("MDS") and Multichannel
Multipoint Distribution Service ("MMDS") systems, and "wireless cable," transmit video programming
to subscribers and provide two-way high speed data operations using the microwave frequencies of the
Broadband Radio Service ("BRS") and Educational Broadband Service ("EBS") (previously referred to as
the Instructional Television Fixed Service ("ITFS")).i03 in connection with the 1996 BRS auction, the
Commission established a small business size standard as an entity that had annual average gross
revenues of no more than $40 million in the previous three calendar years."4 The BRS auctions resulted
in 67 successful bidders obtaining licensing opportunities for 493 Basic Trading Areas ("BTAs"). Of the
67 auction winners, 61 met the definition of a small business. BRS also includes licensees of stations
authorized prior to the auction. At this time, we estimate that of the 61 small business BRS auction
winners, 48 remain small business licensees. In addition to the 48 small businesses that hold BTA
authorizations, there are approximately 392 incumbent BRS licensees that are considered small entities.'Os
After adding the number of small business auction licensees to the number of incumbent licensees not
already counted, we find that there are currently approximately 440 BRS licensees that are defined as
small businesses under either the SBA or the Commission's rules. The Commission has adopted three
levels of bidding credits for BRS: (i) a bidder with attributed average annual gross revenues that exceed
$15 million and do not exceed $40 million for the preceding three years (small business) is eligible to
receive a 15 percent discount on its winning bid; (ii) a bidder with attributed average annual gross
revenues that exceed $3 million and do not exceed $15 million for the preceding three years (very small
business) is eligible to receive a 25 percent discount on its winning bid; and (iii) a bidder with attributed
average annual gross revenues that do not exceed $3 million for the preceding three years (entrepreneur)
is eligible to receive a 35 percent discount on its winning bid.l6 In 2009, the Commission conducted
Auction 86, which offered 78 BRS licenses.'07 Auction 86 concluded with ten bidders winning 61
licenses.'" Of the ten, two bidders claimed small business status and won 4 licenses; one bidder claimed
very small business status and won three licenses; and two bidders claimed entrepreneur status and won
six licenses.
102 See generally 13 C.F.R. 121.201, NAICS code 517210.
103 Amendment of Parts 21 and 74 of the Commission s Rules with Regard to Filing Procedures in the Multipoint
Distribution Service and in the Instructional Television Fixed Service and Implementation of Section 309(j) of the
Communications Act - Competitive Bidding, MM Docket No. 94-131 and PP Docket No. 93-253, Report and Order,
10 FCC Rcd 9589, 9593 para. 7 (1995).
'4 47 C.F.R. 21.961(b)(1).
105 47 U.S.C. 309(j). Hundreds of stations were licensed to incumbent MDS licensees prior to implementation of
Section 309(j) of the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-auction licenses, the
applicable standard is SBA's small business size standard.
106 47 C.F.R. 27.1218. See also "Auction of Broadband Radio Service (BRS) Licenses, Scheduled for October 27,
2009, Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for
Auction 86," Public Notice, 24 FCC Rcd 8277, 8296 (WTB 2009) (Auction 86 Procedures Public Notice).
1o Auction 86 Procedures Public Notice, 24 FCC Rcd at 8280.
08 "Auction of Broadband Radio Service Licenses Closes, Winning Bidders Announced for Auction 86, Down
Payments Due November 23, 2009, Final Payments Due December 8, 2009, Ten-Day Petition to Deny Period,"
Public Notice, 24 FCC Rcd 13572 (WTB 2009).4683
Federal Communications Commission
FCC 12-47
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United States. Federal Communications Commission. FCC Record, Volume 27, No. 5, Pages 3728 to 4696, April 9 - April 27, 2012, book, April 2012; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc102307/m1/972/: accessed April 24, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.