Federal Register, Volume 75, Number 98, May 21, 2010, Pages 28463-28750 Page: 28,530

Federal Register/Vol. 75, No. 98/Friday, May 21, 2010/Proposed Rules

carrier,78 private operational-fixed,79
and broadcast auxiliary radio services.80
At present, there are approximately
31,428 common carrier fixed licensees
and 79,732 private operational-fixed
licensees and broadcast auxiliary radio
licensees in the microwave services.
The Commission has not created a size
standard for a small business
specifically with respect to fixed
microwave services. For purposes of
this analysis, the Commission uses the
SBA small business size standard for the
category "Wireless Telecommunications
Carriers (except satellite)," which
provides that a small business is a
wireless company employing no more
than 1,500 persons.81 The Commission
does not have data specifying the
number of these licensees that have
more than 1,500 employees, and thus is
unable at this time to estimate with
greater precision the number of fixed
microwave service licensees that would
qualify as small business concerns
under the SBA's small business size
standard. Consequently, the
Commission estimates that there are up
to 31,428 common carrier fixed
licensees and up to 79,732 private
operational-fixed licensees and
broadcast auxiliary radio licensees in
the microwave services that may be
small and may be affected by the rules
and policies adopted herein. The
Commission notes, however, that the
common carrier microwave fixed
licensee category includes some large
entities.
79. Offshore Radiotelephone Service.
This service operates on several UHF
television broadcast channels that are
not used for television broadcasting in
the coastal areas of states bordering the
Gulf of Mexico.82 There is presently one
78 See 47 CFR 101 et seq. (formerly, part 21 of the
Commission's Rules) for common carrier fixed
microwave services (except Multipoint Distribution
Service).
79 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.
8o Auxiliary Microwave Service is governed by
part 74 of Title 47 of the Commission's rules. See
47 CFR part 74. This service is 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
television pickups, which relay signals from a
remote location back to the studio.
8113 CFR 121.201, NAICS code 517210.
82 This service is governed by Subpart I of Part
22 of the Commission's rules. See 47 CFR 22.1001

through 22.1037.

licensee in this service. The
Commission uses the SBA definition
applicable to Wireless
Telecommunications Carriers (except
satellite), i.e., an entity employing no
more than 1,500 persons.83 The
Commission is unable to estimate at this
time the number of licensees that would
qualify as small entities under the SBA
definition. The Commission assumes,
for purposes of this analysis, that the
licensee is a small entity, as that term
is defined by the SBA.
80. 39 GHz Service. The Commission
created a special small business size
standard for 39 GHz licenses-an entity
that has average gross revenues of $40
million or less in the three previous
calendar years.84 An additional size
standard for "very small business" is: an
entity that, together with affiliates, has
average gross revenues of not more than
$15 million for the preceding three
calendar years.85 The SBA has approved
these small business size standards.86
The auction of the 2,173 39 GHz
licenses began on April 12, 2000, and
closed on May 8, 2000. The 18 bidders
who claimed small business status won
849 licenses. Consequently, the
Commission estimates that 18 or fewer
39 GHz licensees are small entities that
may be affected by the rules and polices
adopted herein.
81. Broadband Radio Service and
Educational Broadband Service. The
Broadband Radio Service ("BRS"),
formerly known as the Multipoint
Distribution Service ("MDS"),87 and the
Educational Broadband Service ("EBS"),
formerly known as the Instructional
Television Fixed Service ("ITFS"),88 use
2 GHz band frequencies to transmit
video programming and provide
8313 CFR 121.201, NAICS code 517210.
84 See Amendment of the Commission's Rules
Regarding the 37.0-38.6 GHz and 38.6-40.0 GHz
Bands, ET Docket No. 95-183, Report and Order, 63
FR 6079 (Feb. 6, 1998).
85Id.
86 See Letter to Kathleen O'Brien Ham, Chief,
Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau, FCC, from Aida
Alvarez, Administrator, SBA (Feb. 4, 1998).
87 See 47 CFR part 21, subpart K; Amendment of
Parts 1, 21, 73, 74 and 101 of the Commission's
Rules to Facilitate the Provision of Fixed and
Mobile Broadband Access, Educational and Other
Advanced Services in the 2150-2162 and 2500-
2690 MHz Bands; Part 1 of the Commission's
Rules-Further Competitive Bidding Procedures;
Amendment of Parts 21 and 74 to Enable
Multipoint Distribution Service and the
Instructional Television Fixed Service Amendment
of Parts 21 and 74 to Engage in Fixed Two-Way
Transmissions; Amendment of Parts 21 and 74 of
the Commission's Rules With Regard to Licensing
in the Multipoint Distribution Service and in the
Instructional Television Fixed Service for the Gulf
of Mexico, 19 FCC Rcd 14165 (2004) ("MDS/ITFS
Orde').

88 See 47 CFR part 74, subpart I; MDS/ITFS Order,
19 FCC Rcd 14165 (2004).

broadband services to residential
subscribers.89 These services,
collectively referred to as "wireless
cable," were originally designed for the
delivery of multichannel video
programming, similar to that of
traditional cable systems, but over the
past several years licensees have
focused their operations instead on
providing two-way high-speed Internet
access services.90 The Commission
estimates that the number of wireless
cable subscribers is approximately
100,000, as of March 2005. The SBA
small business size standard for the
broad census category of Cable and
Other Program Distribution, which
consists of such entities generating
$13.5 million or less in annual receipts,
appears applicable to MDS and ITFS.91
Note that the census category of "Cable
and Other Program Distribution" is no
longer used and has been superseded by
the larger category "Wireless
Telecommunications Carriers (except
satellite)." This category provides that a
small business is a wireless company
employing no more than 1,500
persons.92 However, since currently
available data was gathered when "Cable
and Other Program Distribution" was
the relevant category, earlier Census
Bureau data collected under the
category of "Cable and Other Program
Distribution" will be used here. Other
standards also apply, as described.
82. The Commission has defined
small MDS (now BRS) entities in the
context of Commission license auctions.
In the 1996 MDS auction,93 the
Commission defined a small business as
an entity that had annual average gross
revenues of less than $40 million in the
previous three calendar years.94 This
definition of a small entity in the
context of MDS auctions has been
approved by the SBA.95 In the MDS
auction, 67 bidders won 493 licenses. Of
the 67 auction winners, 61 claimed
status as a small business. At this time,
the Commission estimates that of the 61
small business MDS auction winners, 48
remain small business licensees. In
addition to the 48 small businesses that
hold BTA authorizations, there are
hundreds of MDS licensees and wireless
cable operators that did not receive their
89 See Annual Assessment of the Status of
Competition in the Market for the Delivery of Video
Programming, Eleventh Annual Report, 20 FCC Rcd
2507, 2565 para. 131 (2006) ("2006 Cable
Competition Report").
9Old.
9113 CFR 121.201, NAICS code 515210.
9213 CFR 121.201, NAICS code 517210.
93 MDS Auction No. 6 began on November 13,
1995, and closed on March 28, 1996. (67 Bidders
won 493 licenses.)
9447 CFR 21.961(b)(1).

95 See ITFS Order, 10 FCC Rcd at 9589.

28530