FCC Record, Volume 27, No. 5, Pages 3728 to 4696, April 9 - April 27, 2012 Page: 3,758
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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")).s' 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.82 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."
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 standard or the Commission's rules. In 2009, the Commission
conducted Auction 86, the sale of 78 licenses in the BRS areas." The Commission offered three levels of
bidding credits: (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) received 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) received 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) received a 35 percent discount on its winning bid."S
Auction 86 concluded in 2009 with the sale of 61 licenses.6 Of the ten winning bidders, two bidders that
claimed small business status won four licenses; one bidder that claimed very small business status won
three licenses; and two bidders that claimed entrepreneur status won six licenses.
26. In addition, the SBA's Cable Television Distribution Services small business size
standard is applicable to EBS. There are presently 2,032 EBS licensees. All but 100 of these licenses are
held by educational institutions. Educational institutions are included in this analysis as small entities.7
Thus, we estimate that at least 1,932 licensees are small businesses. Since 2007, Cable Television
st 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) ("MDS Auction R&O").
82 47 C.F.R. 21.961(b)(1).
83 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.
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 Red 8277 (2009).
8s Id. at 8296.
86 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 Red 13572 (2009).
7 The term "small entity" within SBREFA applies to small organizations (nonprofits) and to small governmental
jurisdictions (cities, counties, towns, townships, villages, school districts, and special districts with populations of
less than 50,000). 5 U.S.C. 601(4H-(6). We do not collect annual revenue data on EBS licensees.
Federal Communications Commission
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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.. (digital.library.unt.edu/ark:/67531/metadc102307/m1/47/: accessed July 20, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.