83_FR_52066 83 FR 51867 - Accelerating Wireless and Wireline Broadband Deployment by Removing Barriers to Infrastructure Investment

83 FR 51867 - Accelerating Wireless and Wireline Broadband Deployment by Removing Barriers to Infrastructure Investment

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 83, Issue 199 (October 15, 2018)

Page Range51867-51886
FR Document2018-22234

In this document, the Federal Communications Commission (``Commission'' or ``FCC'') issues guidance and adopts rules to streamline the wireless infrastructure siting review process to facilitate the deployment of next-generation wireless facilities. Specifically, in the Declaratory Ruling, the Commission identifies specific fee levels for the deployment of Small Wireless Facilities, and it addresses state and local consideration of aesthetic concerns that effect the deployment of Small Wireless Facilities. In the Order, the Commission addresses the ``shot clocks'' governing the review of wireless infrastructure deployments and establishes two new shot clocks for Small Wireless Facilities.

Federal Register, Volume 83 Issue 199 (Monday, October 15, 2018)
[Federal Register Volume 83, Number 199 (Monday, October 15, 2018)]
[Rules and Regulations]
[Pages 51867-51886]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-22234]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[WT Docket No. 17-79, WC Docket No. 17-84; FCC 18-133]


Accelerating Wireless and Wireline Broadband Deployment by 
Removing Barriers to Infrastructure Investment

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(``Commission'' or ``FCC'') issues guidance and adopts rules to 
streamline the wireless infrastructure siting review process to 
facilitate the deployment of next-generation wireless facilities. 
Specifically, in the Declaratory Ruling, the Commission identifies 
specific fee levels for the deployment of Small Wireless Facilities, 
and it addresses state and local consideration of aesthetic concerns 
that effect the deployment of Small Wireless Facilities. In the Order, 
the Commission addresses the ``shot clocks'' governing the review of 
wireless infrastructure deployments and establishes two new shot clocks 
for Small Wireless Facilities.

DATES: Effective January 14, 2019.

FOR FURTHER INFORMATION CONTACT: Jiaming Shang, Deputy Chief (Acting) 
Competition and Infrastructure Policy Division, Wireless 
Telecommunications Bureau, (202) 418-1303, email Jiaming.shang@fcc.gov.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Declaratory Ruling and Third Report and Order (Declaratory Ruling and 
Order), WT Docket No. 17-79 and WC Docket No. 17-84; FCC 18-133, 
adopted September 26, 2018 and released September 27, 2018. The full 
text of this document is available for inspection and copying during 
business hours in the FCC Reference Information Center, Portals II, 445 
12th Street SW, Room CY-A257, Washington, DC 20554. Also, it may be 
purchased from the Commission's duplicating contractor at

[[Page 51868]]

Portals II, 445 12th Street SW, Room CY-B402, Washington, DC 20554; the 
contractor's website, http://www.bcpiweb.com; or by calling (800) 378-
3160, facsimile (202) 488-5563, or email FCC@BCPIWEB.com. Copies of the 
Declaratory Ruling and Order also may be obtained via the Commission's 
Electronic Comment Filing System (ECFS) by entering the docket number 
WT Docket 17-79 and WC Docket No. 17-84. Additionally, the complete 
item is available on the Federal Communications Commission's website at 
http://www.fcc.gov.

Synopsis

I. Declaratory Ruling

    1. In the Declaratory Ruling, the Commission notes that a number of 
appellate courts have articulated different and often conflicting views 
regarding the scope and nature of the limits Congress imposed on state 
and local governments through Sections 253 and 332. In light of these 
diverging views, Congress's vision for a consistent, national policy 
framework, and the need to ensure that the Commission's approach 
continues to make sense in light of the relatively new trend towards 
the large-scale deployment of Small Wireless Facilities, the Commission 
takes the opportunity to clarify and update the FCC's reading of the 
limits Congress imposed. The Commission does so in three main respects.
    2. First, the Commission expresses its agreement with the views 
already stated by the First, Second, and Tenth Circuits that the 
``materially inhibit'' standard articulated in 1997 by the Clinton-era 
FCC's California Payphone decision is the appropriate standard for 
determining whether a state or local law operates as a prohibition or 
effective prohibition within the meaning of Sections 253 and 332.
    3. Second, the Commission notes, as numerous courts have 
recognized, that state and local fees and other charges associated with 
the deployment of wireless infrastructure can effectively prohibit the 
provision of service. At the same time, courts have articulated various 
approaches to determining the types of fees that run afoul of 
Congress's limits in Sections 253 and 332. The Commission thus 
clarifies the particular standard that governs the fees and charges 
that violate Sections 253 and 332 when it comes to the Small Wireless 
Facilities at issue in this decision. Namely, fees are only permitted 
to the extent that they represent a reasonable approximation of the 
local government's objectively reasonable costs and are non-
discriminatory. In this section, the Commission also identifies 
specific fee levels for the deployment of Small Wireless Facilities 
that presumptively comply with this standard. The Commission does so to 
help avoid unnecessary litigation, while recognizing that it is the 
standard itself, not the particular, presumptive fee levels the 
Commission articulates, that ultimately will govern whether a 
particular fee is allowed under Sections 253 and 332. So, fees above 
those levels would be permissible under Sections 253 and 332 to the 
extent a locality's actual, reasonable costs (as measured by the 
standard above) are higher.
    4. Finally, the Commission focuses on a subset of other, non-fee 
provisions of state and local law that could also operate as 
prohibitions on service. The Commission does so in particular by 
addressing state and local consideration of aesthetic concerns in the 
deployment of Small Wireless Facilities. The Commission notes that the 
Small Wireless Facilities that are the subject of this Declaratory 
Ruling remain subject to the Commission's rules governing Radio 
Frequency (RF) emissions exposure.

A. Overview of the Section 253 and Section 332(c)(7) Framework Relevant 
to Small Wireless Facilities Deployment

    5. As an initial matter, the Commission notes that its Declaratory 
Ruling applies with equal measure to the effective prohibition standard 
that appears in both Sections 253(a) and 332(c)(7). This ruling is 
consistent with the basic canon of statutory interpretation that 
identical words appearing in neighboring provisions of the same statute 
should be interpreted to have the same meaning. Moreover, both of these 
provisions apply to wireless telecommunications services as well as to 
commingled services and facilities.
    6. As explained in California Payphone and reaffirmed here, a state 
or local legal requirement will have the effect of prohibiting wireless 
telecommunications services if it materially inhibits the provision of 
such services. California Payphone Ass'n, 12 FCC Rcd 14191 (1997). The 
Commission clarifies that an effective prohibition occurs where a state 
or local legal requirement materially inhibits a provider's ability to 
engage in any of a variety of activities related to its provision of a 
covered service. This test is met not only when filling a coverage gap 
but also when densifying a wireless network, introducing new services 
or otherwise improving service capabilities. Under the California 
Payphone standard, a state or local legal requirement could materially 
inhibit service in numerous ways--not only by rendering a service 
provider unable to provide an existing service in a new geographic area 
or by restricting the entry of a new provider in providing service in a 
particular area, but also by materially inhibiting the introduction of 
new services or the improvement of existing services. Thus, an 
effective prohibition includes materially inhibiting additional 
services or improving existing services.
    7. The Commission's reading of Section 253(a) and Section 
332(c)(7)(B)(i)(II) reflects and supports a marketplace in which 
services can be offered in a multitude of ways with varied capabilities 
and performance characteristics consistent with the policy goals in the 
1996 Act and the Communications Act. To limit Sections 253(a) and 
332(c)(7)(B)(i)(II) to protecting only against coverage gaps or the 
like would be to ignore Congress's contemporaneously-expressed goals of 
``promot[ing] competition[,] . . . secur[ing] . . . higher quality 
services for American telecommunications consumers and encourage[ing] 
the rapid deployment of new telecommunications technologies.'' In 
addition, as the Commission recently explained, the implementation of 
the Act ``must factor in the fundamental objectives of the Act, 
including the deployment of a ``rapid, efficient . . . wire and radio 
communication service with adequate facilities at reasonable charges' 
and `the development and rapid deployment of new technologies, products 
and services for the benefit of the public . . . without administrative 
or judicial delays[, and] efficient and intensive use of the 
electromagnetic spectrum.' '' These provisions demonstrate that the 
Commission's interpretation of Section 253 and Section 
332(c)(7)(B)(i)(II) is in accordance with the broader goals of the 
various statutes that the Commission is entrusted to administer.
    8. California Payphone further concluded that providers must be 
allowed to compete in a ``fair and balanced regulatory environment.'' 
As reflected in decisions such as the Commission's Texas PUC Order, a 
state or local legal requirement can function as an effective 
prohibition either because of the resulting ``financial burden'' in an 
absolute sense, or, independently, because of a resulting competitive 
disparity. Public Utility Comm'n of Texas, et al., Pet. for Decl. 
Ruling and/or Preemption of Certain Provisions of the Texas Pub. Util. 
Reg. Act of 1995, 13 FCC Rcd 3460 (1997). The Commission clarifies that 
``[a]

[[Page 51869]]

regulatory structure that gives an advantage to particular services or 
facilities has a prohibitory effect, even if there are no express 
barriers to entry in the state or local code; the greater the 
discriminatory effect, the more certain it is that entities providing 
service using the disfavored facilities will experience prohibition.'' 
This conclusion is consistent with both Commission and judicial 
precedent recognizing the prohibitory effect that results from a 
competitor being treated materially differently than similarly-situated 
providers. The Commission provides its authoritative interpretation 
below of the circumstances in which a ``financial burden,'' as 
described in the Texas PUC Order, constitutes an effective prohibition 
in the context of certain state and local fees.

B. State and Local Fees

    9. Cognizant of the changing technology and its interaction with 
regulations created for a previous generation of service, the 
Commission sought comment on the scope of Sections 253 and 332(c)(7) 
and on any new or updated guidance the Commission should provide, 
potentially through a Declaratory Ruling. In particular, the Commission 
sought comment on whether it should provide further guidance on how to 
interpret and apply the phrase ``prohibit or have the effect of 
prohibiting.''
    10. The Commission concludes that ROW access fees, and fees for the 
use of government property in the ROW, such as light poles, traffic 
lights, utility poles, and other similar property suitable for hosting 
Small Wireless Facilities, as well as application or review fees and 
similar fees imposed by a state or local government as part of their 
regulation of the deployment of Small Wireless Facilities inside and 
outside the ROW, violate Sections 253 or 332(c)(7) unless these 
conditions are met: (1) The fees are a reasonable approximation of the 
state or local government's costs, (2) only objectively reasonable 
costs are factored into those fees, and (3) the fees are no higher than 
the fees charged to similarly-situated competitors in similar 
situations.
    11. Capital Expenditures. Apart from the text, structure, and 
legislative history of the 1996 Act, an additional, independent 
justification for the Commission's interpretation follows from the 
simple, logical premise, supported by the record, that state and local 
fees in one place of deployment necessarily have the effect of reducing 
the amount of capital that providers can use to deploy infrastructure 
elsewhere, whether the reduction takes place on a local, regional or 
national level. The Commission is persuaded that providers and 
infrastructure builders, like all economic actors, have a finite 
(though perhaps fluid) amount of resources to use for the deployment of 
infrastructure. This does not mean that these resources are limitless, 
however. The Commission concludes that fees imposed by localities, 
above and beyond the recovery of localities' reasonable costs, 
materially and improperly inhibit deployment that could have occurred 
elsewhere. This and regulatory uncertainty created by such effectively 
prohibitive conduct creates an appreciable impact on resources that 
materially limits plans to deploy service. This record evidence 
emphasizes the importance of evaluating the effect of fees on Small 
Wireless Facility deployment on an aggregate basis. The record 
persuades the Commission that fees associated with Small Wireless 
Facility deployment lead to ``a substantial increase in costs''--
particularly when considered in the aggregate--thereby ``plac[ing] a 
significant burden'' on carriers and materially inhibiting their 
provision of service contrary to Section 253 of the Act.
    12. The record reveals that fees above a reasonable approximation 
of cost, even when they may not be perceived as excessive or likely to 
prohibit service in isolation, will have the effect of prohibiting 
wireless service when the aggregate effects are considered, 
particularly given the nature and volume of anticipated Small Wireless 
Facility deployment. The record reveals that these effects can take 
several forms. In some cases, the fees in a particular jurisdiction 
will lead to reduced or entirely forgone deployment of Small Wireless 
Facilities in the near term for that jurisdiction. In other cases, 
where it is essential for a provider to deploy in a given area, the 
fees charged in that geographic area can deprive providers of capital 
needed to deploy elsewhere, and lead to reduced or forgone near-term 
deployment of Small Wireless Facilities in other geographic areas. In 
both of those scenarios the bottom-line outcome on the national 
development of 5G networks is the same--diminished deployment of Small 
Wireless Facilities critical for wireless service and building out 5G 
networks.
    13. Relationship to Section 332. The Commission clarifies that the 
statutory phrase ``prohibit or have the effect of prohibiting'' in 
Section 332(c)(7)(B)(i)(II) has the same meaning as the phrase 
``prohibits or has the effect of prohibiting'' in Section 253(a). There 
is no evidence to suggest that Congress intended for virtually 
identical language to have different meanings in the two provisions. 
Instead, the Commission finds it more reasonable to conclude that the 
language in both sections should be interpreted to have the same 
meaning and to reflect the same standard, including with respect to 
preemption of fees that could ``prohibit'' or have ``the effect of 
prohibiting'' the provision of covered service. Both sections were 
enacted to address concerns about state and local government practices 
that undermined providers' ability to provide covered services, and 
both bar state or local conduct that prohibits or has the effect of 
prohibiting service.
    14. To be sure, Sections 253 and 332(c)(7) may relate to different 
categories of state and local fees. Ultimately, the Commission needs 
not resolve here the precise interplay between Sections 253 and 
332(c)(7). It is enough for it to conclude that, collectively, Congress 
intended for the two provisions to cover the universe of fees charged 
by state and local governments in connection with the deployment of 
telecommunications infrastructure. Given the analogous purposes of both 
sections and the consistent language used by Congress, the Commission 
finds the phrase ``prohibit or have the effect of prohibiting'' in 
Section 332(c)(7)(B)(i)(II) should be construed as having the same 
meaning and governed by the same preemption standard as the nearly 
identical language in Section 253(a).
    15. Application of the Interpretations and Principles Established 
Here. Consistent with the interpretations above, the requirement that 
compensation be limited to a reasonable approximation of objectively 
reasonable costs and be non-discriminatory applies to all state and 
local government fees paid in connection with a provider's use of the 
ROW to deploy Small Wireless Facilities including, but not limited to, 
fees for access to the ROW itself, and fees for the attachment to or 
use of property within the ROW owned or controlled by the government 
(e.g., street lights, traffic lights, utility poles, and other 
infrastructure within the ROW suitable for the placement of Small 
Wireless Facilities). This interpretation applies with equal force to 
any fees reasonably related to the placement, construction, 
maintenance, repair, movement, modification, upgrade, replacement, or 
removal of Small Wireless Facilities within the ROW, including, but not 
limited to, application or permit fees such as siting applications, 
zoning variance applications, building permits, electrical

[[Page 51870]]

permits, parking permits, or excavation permits.
    16. Applying the principles established in this Declaratory Ruling, 
a variety of fees not reasonably tethered to costs appear to violate 
Sections 253(a) or 332(c)(7) in the context of Small Wireless Facility 
deployments. For example, the Commission agrees with courts that have 
recognized that gross revenue fees generally are not based on the costs 
associated with an entity's use of the ROW, and where that is the case, 
are preempted under Section 253(a). In addition, although the 
Commission rejects calls to preclude a state or locality's use of third 
party contractors or consultants, or to find all associated 
compensation preempted, the Commission makes clear that the principles 
discussed herein regarding the reasonableness of cost remain 
applicable. Thus, fees must not only be limited to a reasonable 
approximation of costs, but in order to be reflected in fees the costs 
themselves must also be reasonable. Accordingly, any unreasonably high 
costs, such as excessive charges by third party contractors or 
consultants, may not be passed on through fees even though they are an 
actual ``cost'' to the government. If a locality opts to incur 
unreasonable costs, Sections 253 and 332(c)(7) do not permit it to pass 
those costs on to providers. Fees that depart from these principles are 
not saved by Section 253(c), as the Commission discusses below.
    17. Interpretation of Section 253(c) in the Context of Fees. In 
this section, the Commission turns to the interpretation of several 
provisions in Section 253(c), which provides that state or local action 
that otherwise would be subject to preemption under Section 253(a) may 
be permissible if it meets specified criteria. Section 253(c) expressly 
provides that state or local governments may require telecommunications 
providers to pay ``fair and reasonable compensation'' for use of public 
ROWs but requires that the amounts of any such compensation be 
``competitively neutral and nondiscriminatory'' and ``publicly 
disclosed.''
    18. The Commission interprets the ambiguous phrase ``fair and 
reasonable compensation,'' within the statutory framework it outlined 
for Section 253, to allow state or local governments to charge fees 
that recover a reasonable approximation of the state or local 
governments' actual and reasonable costs. The Commission concludes that 
an appropriate yardstick for ``fair and reasonable compensation,'' and 
therefore an indicator of whether a fee violates Section 253(c), is 
whether it recovers a reasonable approximation of a state or local 
government's objectively reasonable costs of, respectively, maintaining 
the ROW, maintaining a structure within the ROW, or processing an 
application or permit.
    19. The existence of Section 253(c) makes clear that Congress 
anticipated that ``effective prohibitions'' could result from state or 
local government fees, and intended through that clause to provide 
protections in that respect, as discussed in greater detail herein. 
Against that backdrop, the Commission finds it unlikely that Congress 
would have left providers entirely at the mercy of effectively 
unconstrained requirements of state or local governments. The 
Commission's interpretation of Section 253(c), in fact, is consistent 
with the views of many municipal commenters, at least with respect to 
one-time permit or application fees, and the members of the BDAC Ad Hoc 
Committee on Rates and Fees who unanimously concurred that one-time 
fees for municipal applications and permits, such as an electrical 
inspection or a building permit, should be based on the cost to the 
government of processing that application. The Ad Hoc Committee noted 
that ``[the] cost-based fee structure [for one-time fees] unanimously 
approved by the committee accommodates the different siting related 
costs that different localities may incur to review, and process permit 
applications, while precluding excessive fees that impede deployment.'' 
The Commission finds that the same reasoning should apply to other 
state and local government fees such as ROW access fees or fees for the 
use of government property within the ROW.
    20. The Commission recognizes that state and local governments 
incur a variety of direct and actual costs in connection with Small 
Wireless Facilities, such as the cost for staff to review the 
provider's siting application, costs associated with a provider's use 
of the ROW, and costs associated with maintaining the ROW itself or 
structures within the ROW to which Small Wireless Facilities are 
attached. The Commission also recognizes that direct and actual costs 
may vary by location, scope, and extent of providers' planned 
deployments, such that different localities will have different fees 
under the interpretation set forth in this Declaratory Ruling.
    21. Because the Commission interprets fair and reasonable 
compensation as a reasonable approximation of costs, it does not 
suggest that localities must use any specific accounting method to 
document the costs they may incur when determining the fees they charge 
for Small Wireless Facilities within the ROW. Moreover, in order to 
simplify compliance, when a locality charges both types of recurring 
fees identified above (i.e., for access to the ROW and for use of or 
attachment to property in the ROW), the Commission sees no reason for 
concern with how it has allocated costs between those two types of 
fees. It is sufficient under the statute that the total of the two 
recurring fees reflects the total costs involved. Fees that cannot 
ultimately be shown by a state or locality to be a reasonable 
approximation of their costs, such as high fees designed to subsidize 
local government costs in another geographic area or accomplish some 
public policy objective beyond the providers' use of the ROW, are not 
``fair and reasonable compensation . . . for use of the public rights-
of-way'' under Section 253(c). Likewise, the Commission agrees with 
both industry and municipal commenters that excessive and arbitrary 
consulting fees or other costs should not be recoverable as ``fair and 
reasonable compensation,'' because they are not a function of the 
provider's ``use'' of the public ROW.
    22. In addition to requiring that compensation be ``fair and 
reasonable,'' Section 253(c) requires that it be ``competitively 
neutral and nondiscriminatory.'' The Commission has previously 
interpreted this language to prohibit states and localities from 
charging fees on new entrants and not on incumbents. Courts have 
similarly found that states and localities may not impose a range of 
fees on one provider but not on another and even some municipal 
commenters acknowledge that governments should not discriminate on the 
fees charged to different providers. The record reflects continuing 
concerns from providers, however, that they face discriminatory 
charges. The Commission reiterates its previous determination that 
state and local governments may not impose fees on some providers that 
they do not impose on others. The Commission would also be concerned 
about fees, whether one-time or recurring, related to Small Wireless 
Facilities, that exceed the fees for other wireless telecommunications 
infrastructure in similar situations, and to the extent that different 
fees are charged for similar use of the public ROW.
    23. Fee Levels Likely to Comply with Section 253. The Commission's 
interpretations of Section 253(a) and ``fair and reasonable 
compensation'' under Section 253(c) provides guidance for local and 
state fees charged with

[[Page 51871]]

respect to one-time fees generally, and recurring fees for deployments 
in the ROW. Following suggestions for the Commission to ``establish a 
presumptively reasonable `safe harbor' for certain ROW and use fees,'' 
and to facilitate the deployment of specific types of infrastructure 
critical to the rollout of 5G in coming years, the Commission 
identifies in this section three particular types of fee scenarios and 
supply specific guidance on amounts that are presumptively not 
prohibited by Section 253. Informed by the its review of information 
from a range of sources, the Commission concludes that fees at or below 
these amounts presumptively do not constitute an effective prohibition 
under Section 253(a) or Section 332(c)(7) and are presumed to be ``fair 
and reasonable compensation'' under Section 253(c).
    24. Based on its review of the Commission's pole attachment rate 
formula, which would require fees below the levels described in this 
paragraph, as well as small cell legislation in twenty states, local 
legislation from certain municipalities in states that have not passed 
small cell legislation, and comments in the record, the Commission 
presumes that the following fees would not be prohibited by Section 253 
or Section 332(c)(7): (a) $500 for non-recurring fees, including a 
single up-front application that includes up to five Small Wireless 
Facilities, with an additional $100 for each Small Wireless Facility 
beyond five, or $1,000 for non-recurring fees for a new pole (i.e., not 
a collocation) intended to support one or more Small Wireless 
Facilities, and (b) $270 per Small Wireless Facility per year for all 
recurring fees, including any possible ROW access fee or fee for 
attachment to municipally-owned structures in the ROW.
    25. By presuming that fees at or below the levels above comply with 
Section 253, the Commission assumes that there would be almost no 
litigation by providers over fees set at or below these levels. 
Likewise, the Commission's review of the record, including the many 
state small cell bills passed to date, indicate that there should be 
only very limited circumstances in which localities can charge higher 
fees consistent with the requirements of Section 253. In those limited 
circumstances, a locality could prevail in charging fees that are above 
this level by showing that such fees nonetheless comply with the limits 
imposed by Section 253--that is, that they are (1) a reasonable 
approximation of costs, (2) those costs themselves are reasonable, and 
(3) are non-discriminatory. Allowing localities to charge fees above 
these levels upon this showing recognizes local variances in costs.

C. Other State and Local Requirements That Govern Small Facilities 
Deployment

    26. There are also other types of state and local land-use or 
zoning requirements that may restrict Small Wireless Facility 
deployments to the degree that they have the effect of prohibiting 
service in violation of Sections 253 and 332. In this section, the 
Commission discusses how those statutory provisions apply to 
requirements outside the fee context both generally, and with 
particular focus on aesthetic and undergrounding requirements.
    27. As discussed above, a state or local legal requirement 
constitutes an effective prohibition if it ``materially limits or 
inhibits the ability of any competitor or potential competitor to 
compete in a fair and balanced legal and regulatory environment.'' The 
Commission's interpretation of that standard, as set forth above, 
applies equally to fees and to non-fee legal requirements. And as with 
fees, Section 253 contains certain safe harbors that permit some legal 
requirements that might otherwise be preempted by Section 253(a). 
Section 253(b) saves ``requirements necessary to preserve and advance 
universal service, protect the public safety and welfare, ensure the 
continued quality of telecommunications services, and safeguard the 
rights of consumers. And Section 253(c) preserves state and local 
authority to manage the public rights-of-way.
    28. Given the wide variety of possible legal requirements, the 
Commission does not attempt here to determine which of every possible 
non-fee legal requirements are preempted for having the effect of 
prohibiting service, although the Commission's discussion of fees above 
should prove instructive in evaluating specific requirements. Instead, 
the Commission focuses on some specific types of requirements raised in 
the record and provide guidance on when those particular types of 
requirements are preempted by the statute.
    29. Aesthetics. The Commission sought comment on whether deployment 
restrictions based on aesthetic or similar factors are widespread and, 
if so, how Sections 253 and 332(c)(7) should be applied to them. The 
Commission provides guidance on whether and in what circumstances 
aesthetic requirements violate the Act. This will help localities 
develop and implement lawful rules, enable providers to comply with 
these requirements, and facilitate the resolution of disputes. The 
Commission concludes that aesthetics requirements are not preempted if 
they are (1) reasonable, (2) no more burdensome than those applied to 
other types of infrastructure deployments, and (3) objective and 
published in advance.
    30. Like fees, compliance with aesthetic requirements imposes costs 
on providers, and the impact on their ability to provide service is 
just the same as the impact of fees. The Commission therefore draws on 
its analysis of fees to address aesthetic requirements. The Commission 
explained above that fees that merely require providers to bear the 
direct and reasonable costs that their deployments impose on states and 
localities should not be viewed as having the effect of prohibiting 
service and are permissible. Analogously, aesthetic requirements that 
are reasonable in that they are technically feasible and reasonably 
directed to avoiding or remedying the intangible public harm of 
unsightly or out-of-character deployments are also permissible. In 
assessing whether this standard has been met, aesthetic requirements 
that are more burdensome than those the state or locality applies to 
similar infrastructure deployments are not permissible, because such 
discriminatory application evidences that the requirements are not, in 
fact, reasonable and directed at remedying the impact of the wireless 
infrastructure deployment. For example, a minimum spacing requirement 
that has the effect of materially inhibiting wireless service would be 
considered an effective prohibition of service.
    31. Finally, in order to establish that they are reasonable and 
reasonably directed to avoiding aesthetic harms, aesthetic requirements 
must be objective--i.e., they must incorporate clearly-defined and 
ascertainable standards, applied in a principled manner--and must be 
published in advance. ``Secret'' rules that require applicants to guess 
at what types of deployments will pass aesthetic muster substantially 
increase providers' costs without providing any public benefit or 
addressing any public harm. Providers cannot design or implement 
rational plans for deploying Small Wireless Facilities if they cannot 
predict in advance what aesthetic requirements they will be obligated 
to satisfy to obtain permission to deploy a facility at any given site.
    32. The Commission appreciates that at least some localities will 
require some time to establish and publish aesthetics

[[Page 51872]]

standards that are consistent with this Declaratory Ruling. Based on 
its review and evaluation of commenters' concerns, the Commission 
anticipates that such publication should take no longer than 180 days 
after publication of this decision in the Federal Register.
    33. Undergrounding requirements. The Commission understands that 
some local jurisdictions have adopted undergrounding provisions that 
require infrastructure to be deployed below ground based, at least in 
some circumstances, on the locality's aesthetic concerns. A number of 
providers have complained that these types of requirements amount to an 
effective prohibition. In addressing this issue, the Commission first 
reiterates that while undergrounding requirements may well be 
permissible under state law as a general matter, any local authority to 
impose undergrounding requirements under state law does not remove the 
imposition of such undergrounding requirements from the provisions of 
Section 253. In this sense, the Commission notes that a requirement 
that all wireless facilities be deployed underground would amount to an 
effective prohibition given the propagation characteristics of wireless 
signals. Thus, undergrounding requirements can amount to effective 
prohibitions by materially inhibiting the deployment of wireless 
service.
    34. Minimum spacing requirements. Some parties complain of 
municipal requirements regarding the spacing of wireless 
installations--i.e., mandating that facilities be sited at least 100, 
500, or 1,000 feet, or some other minimum distance, away from other 
facilities, ostensibly to avoid excessive overhead ``clutter'' that 
would be visible from public areas. The Commission acknowledges that 
while some such requirements may violate 253(a), others may be 
reasonable aesthetic requirements. For example, under the principle 
that any such requirements be reasonable and publicly available in 
advance, it is difficult to envision any circumstances in which a 
municipality could reasonably promulgate a new minimum spacing 
requirement that, in effect, prevents a provider from replacing its 
preexisting facilities or collocating new equipment on a structure 
already in use. Such a rule change with retroactive effect would almost 
certainly have the effect of prohibiting service under the standards 
the Commission articulate here. Therefore, such requirements should be 
evaluated under the same standards as other aesthetic requirements.

D. States and Localities Act in Their Regulatory Capacities When 
Authorizing and Setting Terms for Wireless Infrastructure Deployment in 
Public Rights of Way

    35. The Commission confirms that it interpretations today extend to 
state and local governments' terms for access to public ROW that they 
own or control, including areas on, below, or above public roadways, 
highways, streets, sidewalks, or similar property, as well as their 
terms for use of or attachment to government-owned property within such 
ROW, such as light poles, traffic lights, and similar property suitable 
for hosting Small Wireless Facilities. As explained below, for two 
alternative and independent reasons, the Commission disagrees with 
state and local government commenters who assert that, in providing or 
denying access to government-owned structures, these governmental 
entities function solely as ``market participants'' whose rights cannot 
be subject to federal preemption under Section 253(a) or Section 
332(c)(7).
    36. First, this effort to differentiate between such governmental 
entities' ``regulatory'' and ``proprietary'' capacities in order to 
insulate the latter from preemption ignores a fundamental feature of 
the market participant doctrine. Specifically, Section 253(a) expressly 
preempts certain state and local ``legal requirements'' and makes no 
distinction between a state or locality's regulatory and proprietary 
conduct. Indeed, as the Commission has long recognized, Section 
253(a)'s sweeping reference to ``state [and] local statute[s] [and] 
regulation[s]'' and ``other State [and] local legal requirement[s]'' 
demonstrates Congress's intent ``to capture a broad range of state and 
local actions that prohibit or have the effect of prohibiting entities 
from providing telecommunications services.'' Section 253(b) mentions 
``requirement[s],'' a phrase that is even broader than that used in 
Section 253(a) but covers ``universal service,'' ``public safety and 
welfare,'' ``continued quality of telecommunications,'' and 
``safeguard[s for the] rights of consumers.'' The subsection does not 
recognize a distinction between regulatory and proprietary. Section 
253(c), which expressly insulates from preemption certain state and 
local government activities, refers in relevant part to ``manag[ing] 
the public rights-of-way'' and ``requir[ing] fair and reasonable 
compensation,'' while eliding any distinction between regulatory and 
proprietary action in either context. The Commission has previously 
observed that Section 253(c) ``makes explicit a local government's 
continuing authority to issue construction permits regulating how and 
when construction is conducted on roads and other public rights-of-
way;'' the Commission concludes here that, as a general matter, 
``manage[ment]'' of the ROW includes any conduct that bears on access 
to and use of those ROW, notwithstanding any attempts to characterize 
such conduct as proprietary. This reading, coupled with Section 
253(c)'s narrow scope, suggests that Congress's omission of a blanket 
proprietary exception to preemption was intentional and thus that such 
conduct can be preempted under Section 253(a). The Commission therefore 
construes Section 253(c)'s requirements, including the requirement that 
compensation be ``fair and reasonable,'' as applying equally to charges 
imposed via contracts and other arrangements between a state or local 
government and a party engaged in wireless facility deployment. This 
interpretation is consistent with Section 253(a)'s reference to ``State 
or local legal requirement[s],'' which the Commission has consistently 
construed to include such agreements. In light of the foregoing, 
whatever the force of the market participant doctrine in other 
contexts, the Commission believes the language, legislative history, 
and purpose of Sections 253(a) and (c) are incompatible with the 
application of this doctrine in this context. The Commission observes 
once more that ``[o]ur conclusion that Congress intended this language 
to be interpreted broadly is reinforced by the scope of section 
253(d),'' which ``directs the Commission to preempt any statute, 
regulation, or legal requirement permitted or imposed by a state or 
local government if it contravenes sections 253(a) or (b). A more 
restrictive interpretation of the term `other legal requirements' 
easily could permit state and local restrictions on competition to 
escape preemption based solely on the way in which [State] action [is] 
structured. The Commission does not believe that Congress intended this 
result.''
    37. Similarly, the Commission interprets Section 332(c)(7)(B)(ii)'s 
references to ``any request[s] for authorization to place, construct, 
or modify personal wireless service facilities'' broadly, consistent 
with Congressional intent. As described below, the Commission finds 
that ``any'' is unqualifiedly broad, and that ``request'' encompasses 
anything required to secure all authorizations necessary for the 
deployment of

[[Page 51873]]

personal wireless services infrastructure. In particular, the 
Commission finds that Section 332(c)(7) includes authorizations 
relating to access to a ROW, including but not limited to the 
``place[ment], construct[ion], or modif[ication]'' of facilities on 
government-owned property, for the purpose of providing ``personal 
wireless service.'' The Commission observes that this result, too, is 
consistent with Commission precedent, which involved a contract that 
provided exclusive access to a ROW. As but one example, to have limited 
that holding to exclude government-owned property within the ROW even 
if the carrier needed access to that property would have the effect of 
diluting or completely defeating the purpose of Section 332(c)(7).
    38. Second, and in the alternative, even if Section 253(a) and 
Section 332(c)(7) were to permit leeway for states and localities 
acting in their proprietary role, the examples in the record would be 
excepted because they involve states and localities fulfilling 
regulatory objectives. In the proprietary context, ``a State acts as a 
`market participant with no interest in setting policy.' '' The 
Commission contrasts state and local governments' purely proprietary 
actions with states and localities acting with respect to managing or 
controlling access to property within public ROW, or to decisions about 
where facilities that will provide personal wireless service to the 
public may be sited. As several commenters point out, courts have 
recognized that states and localities ``hold the public streets and 
sidewalks in trust for the public'' and ``manage public ROW in their 
regulatory capacities.'' These decisions could be based on a number of 
regulatory objectives, such as aesthetics or public safety and welfare, 
some of which, as the Commission notes elsewhere, would fall within the 
preemption scheme envisioned by Congress. In these situations, the 
State or locality's role seems to be indistinguishable from its 
function and objectives as a regulator. To the extent that there is 
some distinction, the temptation to blend the two roles for purposes of 
insulating conduct from federal preemption cannot be underestimated in 
light of the overarching statutory objective that telecommunications 
service and personal wireless services be deployed without material 
impediments.
    39. The Commission believes that Section 253(c) is properly 
construed to suggest that Congress did not intend to permit states and 
localities to rely on their ownership of property within a ROW as a 
pretext to advance regulatory objectives that prohibit or have the 
effect of prohibiting the provision of covered services, and thus that 
such conduct is preempted. The Commission's interpretations here are 
intended to facilitate the implementation of the scheme Congress 
intended and to provide greater regulatory certainty to states, 
municipalities, and regulated parties about what conduct is preempted 
under Section 253(a). Should factual questions arise about whether a 
state or locality is engaged in such behavior, Section 253(d) affords 
state and local governments and private parties an avenue for specific 
preemption challenges.

E. Responses to Challenges to the Commission's Interpretive Authority 
and Other Arguments

    40. The Commission rejects claims that it lacks authority to issue 
authoritative interpretations of Sections 253 and 332(c)(7) in this 
Declaratory Ruling. The Commission acts here pursuant to its broad 
authority to interpret key provisions of the Communications Act, 
consistent with the Commission's exercise of that interpretive 
authority in the past. In this instance, the Commission finds that 
issuing a Declaratory Ruling is necessary to remove what the record 
reveals is substantial uncertainty and to reduce the number and 
complexity of legal controversies regarding certain fee and non-fee 
state and local legal requirements in connection with Small Wireless 
Facility infrastructure. The Commission thus exercise its authority in 
this Declaratory Ruling to interpret Section 253 and Section 332(c)(7) 
and explain how those provisions apply in the specific scenarios at 
issue here.
    41. Nothing in Sections 253 or 332(c)(7) purports to limit the 
exercise of the Commission's general interpretive authority. Congress's 
inclusion of preemption provisions in Section 253(d) and Section 
332(c)(7)(B)(v) does not limit the Commission's ability pursuant to 
other sections of the Act to construe and provide its authoritative 
interpretation as to the meaning of those provisions. Any preemption 
under Section 253 and/or Section 332(c)(7)(B) that subsequently occurs 
will proceed in accordance with the enforcement mechanisms available in 
each context. But whatever enforcement mechanisms may be available to 
preempt specific state and local requirements, nothing in Section 253 
or Section 332(c)(7) prevents the Commission from declaring that a 
category of state or local laws is inconsistent with Section 253(a) or 
Section 332(c)(7)(B)(i)(II) because it prohibits or has the effect of 
prohibiting the relevant covered service.
    42. The Commission's interpretations of Sections 253 and Section 
332(c)(7) are likewise not at odds with the Tenth Amendment and 
constitutional precedent, as some commenters contend. In particular, 
the Commission's interpretations do not directly ``compel the states to 
administer federal regulatory programs or pass legislation.'' The 
outcome of violations of Section 253(a) or Section 332(c)(7)(B) of the 
Act are no more than a consequence of ``the limits Congress already 
imposed on State and local governments'' through its enactment of 
Section 332(c)(7).
    43. The Commission also reject the suggestion that the limits 
Section 253 places on state and local rights-of-way fees and management 
will unconstitutionally interfere with the relationship between a state 
and its political subdivisions. As relevant to its interpretations 
here, it is not clear, at first blush, that such concerns would be 
implicated. Because state and local legal requirements can be written 
and structured in myriad ways, and challenges to such state or local 
activities could be framed in broad or narrow terms, the Commission 
declines to resolve such questions here, divorced from any specific 
context.

II. Third Report and Order

    44. In this Third Report and Order, the Commission addresses the 
application of shot clocks to state and local review of wireless 
infrastructure deployments. The Commission does so by taking action in 
three main areas. First, the Commission adopts a new set of shot clocks 
tailored to support the deployment Small Wireless Facilities. Second, 
the Commission adopts a specific remedy that applies to violations of 
these new Small Wireless Facility shot clocks, which the Commission 
expects will operate to significantly reduce the need for litigation 
over missed shot clocks. Third, the Commission clarifies a number of 
issues that are relevant to all of the FCC's shot clocks, including the 
types of authorizations subject to these time periods.

A. New Shot Clocks for Small Wireless Facility Deployments

    45. In 2009, the Commission concluded that it should use shot 
clocks to define a presumptive ``reasonable period of time'' beyond 
which state or local inaction on wireless infrastructure siting 
applications would constitute a ``failure to act'' within the meaning 
of

[[Page 51874]]

Section 332. The Commission adopted a 90-day clock for reviewing 
collocation applications and a 150-day clock for reviewing siting 
applications other than collocations. The record here suggests that the 
two existing Section 332 shot clocks have increased the efficiency of 
deploying wireless infrastructure. Many localities already process 
wireless siting applications in less time than required by those shot 
clocks and a number of states have enacted laws requiring that 
collocation applications be processed in 60 days or less. Some siting 
agencies acknowledge that they have worked to gain efficiencies in 
processing siting applications and welcome the addition of new shot 
clocks tailored to the deployment of small scale facilities. Given 
siting agencies' increased experience with existing shot clocks, the 
greater need for rapid siting of Small Wireless Facilities nationwide, 
and the lower burden siting of these facilities places on siting 
agencies in many cases, the Commission takes this opportunity to update 
its approach to speed the deployment of Small Wireless Facilities.
1. Two New Section 332 Shot Clocks for Deployment of Small Wireless 
Facilities
    46. In this section, the Commission adopts two new Section 332 shot 
clocks for Small Wireless Facilities--60 days for review of an 
application for collocation of Small Wireless Facilities using a 
preexisting structure and 90 days for review of an application for 
attachment of Small Wireless Facilities using a new structure. These 
new Section 332 shot clocks carefully balance the well-established 
authority that states and local authorities have over review of 
wireless siting applications with the requirements of Section 
332(c)(7)(ii) to exercise that authority ``within a reasonable period 
of time . . . taking into account the nature and scope of the 
request.'' Further, the Commission's decision is consistent with the 
BDAC's Model Code for Municipalities' recommended timeframes, which 
utilize this same 60-day and 90-day framework for collocation of Small 
Wireless Facilities and new structures and are similar to shot clocks 
enacted in state level small cell bills and the real world experience 
of many municipalities which further supports the reasonableness of its 
approach. The Commission's actions will modernize the framework for 
wireless facility siting by taking into consideration that states and 
localities should be able to address the siting of Small Wireless 
Facilities in a more expedited review period than needed for larger 
facilities.
    47. The Commission finds compelling reasons to establish a new 
presumptively reasonable Section 332 shot clock of 60 days for 
collocations of Small Wireless Facilities on existing structures. The 
record demonstrates the need for, and reasonableness of, expediting the 
siting review of these collocations. Notwithstanding the implementation 
of the current shot clocks, more streamlined procedures are both 
reasonable and necessary to provide greater predictability for siting 
applications nationwide for the deployment of Small Wireless 
Facilities. The two current Section 332 shot clocks do not reflect the 
evolution of the application review process and evidence that 
localities can complete reviews more quickly than was the case when the 
existing Section 332 shot clocks were adopted nine years ago. Since 
2009, localities have gained significant experience processing wireless 
siting applications. Indeed, many localities already process wireless 
siting applications in less than the required time and several 
jurisdictions require by law that collocation applications be processed 
in 60 days or less. With the passage of time, siting agencies have 
become more efficient in processing siting applications. These facts 
demonstrate that a shorter, 60-day shot clock for processing 
collocation applications for Small Wireless Facilities is reasonable.
    48. As the Commission found in 2009, collocation applications are 
generally easier to process than new construction because the community 
impact is likely to be smaller. In particular, the addition of an 
antenna to an existing tower or other structure is unlikely to have a 
significant visual impact on the community. The size of Small Wireless 
Facilities poses little or no risk of adverse effects on the 
environment or historic preservation. Indeed, many jurisdictions do not 
require public hearings for approval of such attachments, underscoring 
their belief that such attachments do not implicate complex issues 
requiring a more searching review.
    49. Further, the Commission finds no reason to believe that 
applying a 60-day time frame for Small Wireless Facility collocations 
under Section 332 creates confusion with collocations that fall within 
the scope of ``eligible facilities requests'' under Section 6409 of the 
Spectrum Act, which are also subject to a 60-day review. The type of 
facilities at issue here are distinctly different and the definition of 
a Small Wireless Facility is clear. Further, siting authorities are 
required to process Section 6409 applications involving the swap out of 
certain equipment in 60 days, and the Commission sees no meaningful 
difference in processing these applications than processing Section 332 
collocation applications in 60 days. There is no reason to apply 
different time periods (60 vs. 90 days) to what is essentially the same 
review: Modification of an existing structure to accommodate new 
equipment. Finally, adopting a 60-day shot clock will encourage service 
providers to collocate rather than opting to build new siting 
structures which has numerous advantages.
    50. For similar reasons, the Commission also finds it reasonable to 
establish a new 90-day Section 332 shot clock for new construction of 
Small Wireless Facilities. Ninety days is a presumptively reasonable 
period of time for localities to review such siting applications. Small 
Wireless Facilities have far less visual and other impact than the 
facilities the Commission considered in 2009 and should accordingly 
require less time to review. Indeed, some state and local governments 
have already adopted 60-day maximum reasonable periods of time for 
review of all small cell siting applications, and, even in the absence 
of such maximum requirements, several are already reviewing and 
approving small-cell siting applications within 60 days or less after 
filing. Numerous industry commenters advocated a 90-day shot clock for 
all non-collocation deployments. Based on this record, the Commission 
finds review of an application to deploy a Small Wireless Facility 
using a new structure warrants more review time than a mere 
collocation, but less than the construction of a macro tower. For the 
reasons explained below, the Commission also specifies today a 
provision that will initially reset these two new shot clocks in the 
event that a locality receives a materially incomplete application.
2. Batched Applications for Small Wireless Facilities
    51. Given the way in which Small Wireless Facilities are likely to 
be deployed, in large numbers as part of a system meant to cover a 
particular area, the Commission anticipates that some applicants will 
submit ``batched'' applications: Multiple separate applications filed 
at the same time, each for one or more sites or a single application 
covering multiple sites. The Commission sought comment on whether 
batched applications should be subject to either longer or shorter shot 
clocks than would apply if each component of the batch were submitted

[[Page 51875]]

separately. The Commission sees no reason why the shot clocks for 
batched applications to deploy Small Wireless Facilities should be 
longer than those that apply to individual applications because, in 
many cases, the batching of such applications has advantages in terms 
of administrative efficiency that could actually make review easier. 
The Commission's decision flows from its current Section 332 shot clock 
policy. Under the two existing Section 332 shot clocks, if an applicant 
files multiple siting applications on the same day for the same type of 
facilities, each application is subject to the same number of review 
days by the siting agency. These multiple siting applications are 
equivalent to a batched application and therefore the shot clocks for 
batching should follow the same rules as if the applications were filed 
separately. Accordingly, when applications to deploy Small Wireless 
Facilities are filed in batches, the shot clock that applies to the 
batch is the same one that would apply had the applicant submitted 
individual applications. Should an applicant file a single application 
for a batch that includes both collocated and new construction of Small 
Wireless Facilities, the longer 90-day shot clock will apply, to ensure 
that the siting authority has adequate time to review the new 
construction sites.
    52. The Commission recognizes the concerns raised by parties 
arguing for a longer time period for at least some batched applications 
but concludes that a separate rule is not necessary to address these 
concerns. Under the Commission's approach, in extraordinary cases, a 
siting authority, as discussed below, can rebut the presumption of 
reasonableness of the applicable shot clock period where a batch 
application causes legitimate overload on the siting authority's 
resources. Thus, contrary to some localities' arguments, the 
Commission's approach provides for a certain degree of flexibility to 
account for exceptional circumstances. In addition, consistent with, 
and for the same reasons as the Commission's conclusion below that 
Section 332 does not permit states and localities to prohibit 
applicants from requesting multiple types of approvals simultaneously, 
the Commission finds that Section 332(c)(7)(B)(ii) similarly does not 
allow states and localities to refuse to accept batches of applications 
to deploy Small Wireless Facilities.

B. New Remedy for Violations of the Small Wireless Facilities Shot 
Clocks

    53. In adopting these new shot clocks for Small Wireless Facility 
applications, the Commission also provides an additional remedy that it 
expects will substantially reduce the likelihood that applicants will 
need to pursue additional and costly relief in court at the expiration 
of those time periods.
    54. The Commission determines that the failure of a state or local 
government to issue a decision on a Small Wireless Facility siting 
application within the presumptively reasonable time periods above will 
constitute a ``failure to act'' within the meaning of Section 
332(c)(7)(B)(v). Therefore, a provider is, at a minimum, entitled to 
the same process and remedies available for a failure to act within the 
new Small Wireless Facility shot clocks as they have been under the 
FCC's 2009 shot clocks. But the Commission also adds an additional 
remedy for the new Small Wireless Facility shot clocks.
    55. State or local inaction by the end of the Small Wireless 
Facility shot clock will function not only as a Section 332(c)(7)(B)(v) 
failure to act but also amount to a presumptive prohibition on the 
provision of personal wireless services within the meaning of Section 
332(c)(7)(B)(i)(II). Accordingly, the Commission would expect the state 
or local government to issue all necessary permits without further 
delay. In cases where such action is not taken, the Commission assumes, 
for the reasons discussed below, that the applicant would have a 
straightforward case for obtaining expedited relief in court.
    56. As discussed in the Declaratory Ruling, a regulation under 
Section 332(c)(7)(B)(i)(II) constitutes an effective prohibition if it 
materially limits or inhibits the ability of any competitor or 
potential competitor to compete in a fair and balanced legal and 
regulatory environment. Missing shot clock deadlines would thus 
presumptively have the effect of unlawfully prohibiting service in that 
such failure to act can be expected to materially limit or inhibit the 
introduction of new services or the improvement of existing services. 
Thus, when a siting authority misses the applicable shot clock 
deadline, the applicant may commence suit in a court of competent 
jurisdiction alleging a violation of Section 332(c)(7)(B)(i)(II), in 
addition to a violation of Section 332(c)(7)(B)(ii), as discussed 
above. The siting authority then will have an opportunity to rebut the 
presumption of effective prohibition by demonstrating that the failure 
to act was reasonable under the circumstances and, therefore, did not 
materially limit or inhibit the applicant from introducing new services 
or improving existing services.
    57. Given the seriousness of failure to act within a reasonable 
period of time, the Commission expects, as noted above, siting 
authorities to issue without any further delay all necessary 
authorizations when notified by the applicant that they have missed the 
shot clock deadline, absent extraordinary circumstances. Where the 
siting authority nevertheless fails to issue all necessary 
authorizations and litigation is commenced based on violations of 
Sections 332(c)(7)(B)(i)(II) and/or 332(c)(7)(B)(ii), the Commission 
expects that applicants and other aggrieved parties will likely pursue 
equitable judicial remedies. Given the relatively low burden on state 
and local authorities of simply acting--one way or the other--within 
the Small Wireless Facility shot clocks, the Commission thinks that 
applicants would have a relatively low hurdle to clear in establishing 
a right to expedited judicial relief.
    58. The Commission expects that courts will typically find 
expedited and permanent injunctive relief warranted for violations of 
Sections 332(c)(7)(B)(i)(II) and 332(c)(7)(B)(ii) of the Act when 
addressing the circumstances discussed in this Order. The Commission 
believes that this approach is sensible because guarding against 
barriers to the deployment of personal wireless facilities not only 
advances the goal of Section 332(c)(7)(B) but also policies set out 
elsewhere in the Communications Act and 1996 Act, as the Commission 
recently has recognized in the case of Small Wireless Facilities. This 
is so whether or not these barriers stem from bad faith. Nor does the 
Commission anticipate that there would be unresolved issues implicating 
the siting authority's expertise and therefore requiring remand in most 
instances.
    59. The guidance provided here should reduce the need for, and 
complexity of, case-by-case litigation and reduce the likelihood of 
vastly different timing across various jurisdictions for the same type 
of deployment. This clarification, along with the other actions the 
Commission takes in this Third Report and Order, should streamline the 
courts' decision-making process and reduce the possibility of 
inconsistent rulings. Consequently, the Commission believes that its 
approach helps facilitate courts' ability to ``hear and decide such 
[lawsuits] on an expedited basis,'' as the statute requires.
    60. The Commission's updated interpretation of Section 332(c)(7) 
for Small Wireless Facilities effectively balances the interest of 
wireless service providers to have siting applications granted in a 
timely and streamlined manner and the interest of localities to

[[Page 51876]]

protect public safety and welfare and preserve their authority over the 
permitting process. The Commission's specialized deployment categories, 
in conjunction with the acknowledgement that in rare instances, it may 
legitimately take longer to act, recognize that the siting process is 
complex and handled in many different ways under various states' and 
localities' long-established codes. Further, the Commission's approach 
tempers localities' concerns about the inflexibility of a deemed 
granted proposal because the new remedy the Commission adopts here 
accounts for the breadth of potentially unforeseen circumstances that 
individual localities may face and the possibility that additional 
review time may be needed in truly exceptional circumstances. The 
Commission further finds that its interpretive framework will not be 
unduly burdensome on localities because a number of states have already 
adopted even more stringent deemed granted remedies

C. Clarification of Issues Related to All Section 332 Shot Clocks

1. Authorizations Subject to the ``Reasonable Period of Time'' 
Provision of Section 332(c)(7)(B)(ii)
    61. Section 332(c)(7)(B)(ii) requires state and local governments 
to act ``within a reasonable period of time'' on ``any request for 
authorization to place, construct, or modify personal wireless service 
facilities.'' The Commission has not addressed the specific types of 
authorizations subject to this requirement. After carefully considering 
these arguments, the Commission finds that ``any request for 
authorization to place, construct, or modify personal wireless service 
facilities'' under Section 332(c)(7)(B)(ii) means all authorizations 
necessary for the deployment of personal wireless services 
infrastructure. This interpretation finds support in the record and is 
consistent with the courts' interpretation of this provision and the 
text and purpose of the Act.
    62. The Commission's interpretation remains faithful to the purpose 
of Section 332(c)(7) to balance Congress's competing desires to 
preserve the traditional role of state and local governments in 
regulating land use and zoning, while encouraging the rapid development 
of new telecommunications technologies. Under the Commission's 
interpretation, states and localities retain their authority over 
personal wireless facilities deployment. At the same time, deployment 
will be kept on track by ensuring that the entire approval process 
necessary for deployment is completed within a reasonable period of 
time, as defined by the shot clocks addressed in this Third Report and 
Order.
2. Codification of Section 332 Shot Clocks
    63. In addition to establishing two new Section 332 shot clocks for 
Small Wireless Facilities, the Commission takes this opportunity to 
codify its two existing Section 332 shot clocks for siting applications 
that do not involve Small Wireless Facilities. In 2009 the Commission 
found that 90 days is a reasonable time frame for processing 
collocation applications and 150 days is a reasonable time frame to 
process applications other than collocations. Since these Section 332 
shot clocks were adopted as part of a declaratory ruling, they were not 
codified in the Commission's rules. The Commission sought comment on 
whether to modify these shot clocks. The Commission finds no need to 
modify them here and will continue to use these shot clocks for 
processing Section 332 siting applications that do not involve Small 
Wireless Facilities. The Commission does, though, codify these two 
existing shot clocks in its rules alongside the two newly-adopted shot 
clocks so that all interested parties can readily find the shot clock 
requirements in one place.
3. Collocations on Structures Not Previously Zoned for Wireless Use
    64. The Commission takes this opportunity to clarify that for 
purposes of the Section 332 shot clocks, attachment of facilities to 
existing structures constitutes collocation, regardless of whether the 
structure or the location has previously been zoned for wireless 
facilities. As the Commission stated in 2009, ``an application is a 
request for collocation if it does not involve a `substantial increase 
in the size of a tower' as defined in the Nationwide Programmatic 
Agreement (NPA) for the Collocation of Wireless Antennas.'' The 
definition of ``[c]ollocation'' in the NPA provides for the ``mounting 
or installation of an antenna on an existing tower, building or 
structure for the purpose of transmitting and/or receiving radio 
frequency signals for communications purposes, whether or not there is 
an existing antenna on the structure.'' The NPA's definition of 
collocation explicitly encompasses collocations on structures and 
buildings that have not yet been zoned for wireless use. To interpret 
the NPA any other way would be unduly narrow and there is no persuasive 
reason to accept a narrower interpretation. This is particularly true 
given that the NPA definition of collocation stands in direct contrast 
with the definition of collocation in the Spectrum Act, pursuant to 
which facilities only fall within the scope of an ``eligible facilities 
request'' if they are attached to towers or base stations that have 
already been zoned for wireless use.
4. When Shot Clocks Start and Incomplete Applications
    65. In 2014 the Commission clarified that a shot clock begins to 
run when an application is first submitted, not when the application is 
deemed complete. The clock can be paused, however, if the locality 
notifies the applicant within 30 days that the application is 
incomplete. The locality may pause the clock again if it provides 
written notice within 10 days that the supplemental submission did not 
provide the information identified in the original notice delineating 
missing information. The Commission sought comment on these 
determinations.
    66. Based on the record, the Commission finds no cause to alter the 
Commission's prior determinations and now codifies them in its rules. 
Codified rules, easily accessible to applicants and localities alike, 
should provide helpful clarity. The complaints by states and localities 
about the sufficiency of some of the applications they receive are 
adequately addressed by the Commission's current policy, which 
preserves the states' and localities' ability to pause review when they 
find an application to be incomplete. The Commission does not find it 
necessary at this point to shorten the 30-day initial review period for 
completeness because, as was the case when this review period was 
adopted in the 2009, it remains consistent with review periods for 
completeness under existing state wireless infrastructure deployment 
statutes and still ``gives State and local governments sufficient time 
for reviewing applications for completeness, while protecting 
applicants from a last minute decision that an application should be 
denied as incomplete.''
    67. However, for applications to deploy Small Wireless Facilities, 
the Commission implements a modified tolling system designed to help 
ensure that providers are submitting complete applications on day one. 
This step accounts for the fact that the shot clocks applicable to such 
applications are shorter than those established in 2009 and, because of 
which, there may instances where the prevailing tolling

[[Page 51877]]

rules would further shorten the shot clocks to such an extent that it 
might be impossible for siting authorities to act on the application. 
For Small Wireless Facilities applications, the siting authority has 10 
days from the submission of the application to determine whether the 
application is incomplete. The shot clock then resets once the 
applicant submits the supplemental information requested by the siting 
authority. Thus, for example, for an application to collocate Small 
Wireless Facilities, once the applicant submits the supplemental 
information in response to a siting authority's timely request, the 
shot clock resets, effectively giving the siting authority an 
additional 60 days to act on the Small Wireless Facilities collocation 
application. For subsequent determinations of incompleteness, the 
tolling rules that apply to non-Small Wireless Facilities would apply--
that is, the shot clock would toll if the siting authority provides 
written notice within 10 days that the supplemental submission did not 
provide the information identified in the original notice delineating 
missing information.
    68. As noted above, multiple authorizations may be required before 
a deployment is allowed to move forward. For instance, a locality may 
require a zoning permit, a building permit, an electrical permit, a 
road closure permit, and an architectural or engineering permit for an 
applicant to place, construct, or modify its proposed personal wireless 
service facilities. All of these permits are subject to Section 332's 
requirement to act within a reasonable period of time, and thus all are 
subject to the shot clocks the Commission adopts or codifies here.
    69. The Commission also finds that mandatory pre-application 
procedures and requirements do not toll the shot clocks. The Commission 
concludes that the ability to toll a shot clock when an application is 
found incomplete or by mutual agreement by the applicant and the siting 
authority should be adequate to address these concerns. Much like a 
requirement to file applications one after another, requiring pre-
application review would allow for a complete circumvention of the shot 
clocks by significantly delaying their start date. An application is 
not ruled on within ``a reasonable period of time after the request is 
duly filed'' if the state or locality takes the full ordinary review 
period after having delayed the filing in the first instance due to 
required pre-application review. Indeed, requiring a pre-application 
review before an application may be filed is similar to imposing a 
moratorium, which the Commission has made clear does not stop the shot 
clocks from running. Therefore, the Commission concludes that if an 
applicant proffers an application, but a state or locality refuses to 
accept it until a pre-application review has been completed, the shot 
clock begins to run when the application is proffered.
    70. That said, the Commission encourages voluntary pre-application 
discussions, which may well be useful to both parties. The record 
indicates that such meetings can clarify key aspects of the application 
review process, especially with respect to large submissions or 
applicants new to a particular locality's processes and may speed the 
pace of review. To the extent that an applicant voluntarily engages in 
a pre-application review to smooth the way for its filing, the shot 
clock will begin when an application is filed, presumably after the 
pre-application review has concluded.
    71. The Commission also reiterates that the remedies granted under 
Section 332(c)(7)(B)(v) are independent of, and in addition to, any 
remedies that may be available under state or local law. Thus, where a 
state or locality has established its own shot clocks, an applicant may 
pursue any remedies granted under state or local law in cases where the 
siting authority fails to act within those shot clocks. However, the 
applicant must wait until the Commission shot clock period has expired 
to bring suit for a ``failure to act'' under Section 332(c)(7)(B)(v).

III. Procedural Matters

A. Final Regulatory Flexibility Analysis

    72. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Notice of Proposed Rulemaking (NPRM), released in 
April 2017 (82 FR 22453, May 16, 2017). The Commission sought written 
public comment on the proposals in the NPRM, including comment on the 
IRFA. The comments received are addressed below in Section 2. This 
present Final Regulatory Flexibility Analysis (FRFA) conforms to the 
RFA.
1. Need for and Objectives of the Rules
    73. In the Third Report and Order, the Commission continues its 
efforts to promote the timely buildout of wireless infrastructure 
across the country by eliminating regulatory impediments that 
unnecessarily delay bringing personal wireless services to consumers. 
The record shows that lengthy delays in approving siting applications 
by siting agencies has been a persistent problem. With this in mind, 
the Third Report and Order establishes and codifies specific rules 
concerning the amount of time siting agencies may take to review and 
approve certain categories of wireless infrastructure siting 
applications. More specifically, the Commission addresses its Section 
332 shot clock rules for infrastructure applications which will be 
presumed reasonable under the Communications Act. As an initial matter, 
the Commission establishes two new shot clocks for Small Wireless 
Facilities applications. For collocation of Small Wireless Facilities 
on preexisting structures, the Commission adopts a 60-day shot clock 
which applies to both individual and batched applications. For 
applications associated with Small Wireless Facilities new construction 
the Commission adopts a 90-day shot clock for both individual and 
batched applications. The Commission also codifies two existing Section 
332 shot clocks for all other Non-Small Wireless Facilities that were 
established in 2009 without codification. These existing shot clocks 
require 90-days for processing of all other Non-Small Wireless 
Facilities collocation applications, and 150-days for processing of all 
other Non-Small Wireless Facilities applications other than 
collocations.
    74. The Third Report and Order addresses other issues related to 
both the existing and new shot clocks. In particular the Commission 
addresses the specific types of authorizations subject to the 
``Reasonable Period of Time'' provisions of Section 332(c)(7)(B)(ii), 
finding that ``any request for authorization to place, construct, or 
modify personal wireless service facilities'' under Section 
332(c)(7)(B)(ii) means all authorizations a locality may require, and 
to all aspects of and steps in the siting process, including license or 
franchise agreements to access ROW, building permits, public notices 
and meetings, lease negotiations, electric permits, road closure 
permits, aesthetic approvals, and other authorizations needed for 
deployment of personal wireless services infrastructure. The Commission 
also addresses collocation on structures not previously zoned for 
wireless use, when the four Section 332 shot clocks begin to run, the 
impact of incomplete applications on the Commission's Section 332 shot 
clocks, and how state imposed shot clocks remedies effect the 
Commission's Section 332 shot clocks remedies.
    75. The Commission discusses the appropriate judicial remedy that 
applicants may pursue in cases where a

[[Page 51878]]

siting authority fails to act within the applicable shot clock period. 
In those situations, applicants may commence an action in a court of 
competent jurisdiction alleging a violation of Section 
332(c)(7)(B)(i)(II) and seek injunctive relief granting the 
application. Notwithstanding the availability of a judicial remedy if a 
shot clock deadline is missed, the Commission recognizes that the 
Section 332 time frames might not be met in exceptional circumstances 
and has refined its interpretation of the circumstances when a period 
of time longer than the relevant shot clock would nonetheless be a 
reasonable period of time for action by a siting agency. In addition, a 
siting authority that is subject to a court action for missing an 
applicable shot clock deadline has the opportunity to demonstrate that 
the failure to act was reasonable under the circumstances and, 
therefore, did not materially limit or inhibit the applicant from 
introducing new services or improving existing services thereby 
rebutting the effective prohibition presumption.
    76. The rules adopted in the Third Report and Order will accelerate 
the deployment of wireless infrastructure needed for the mobile 
wireless services of the future, while preserving the fundamental role 
of localities in this process. Under the Commission's new rules, 
localities will maintain control over the placement, construction and 
modification of personal wireless facilities, while at the same time 
the Commission's new process will streamline the review of wireless 
siting applications.
2. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA
    77. Only one party--the Smart Cities and Special Districts 
Coalition--filed comments specifically addressing the rules and 
policies proposed in the IRFA. They argue that any shortening or 
alteration of the Commission's existing shot clocks or the adoption of 
a deemed granted remedy will adversely affect small local governments, 
special districts, property owners, small developers, and others by 
placing their siting applications behind wireless provider siting 
applications. Subsequently, NATOA filed comments concerning the draft 
FRFA. NATOA argues that the new shot clocks impose burdens on local 
governments and particularly those with limited resources. NATOA 
asserts that the new shot clocks will spur more deployment applications 
than localities currently process.
    78. These arguments, however, fail to acknowledge that Section 332 
shot clocks have been in place for years and reflect Congressional 
intent as seen in the statutory language of Section 332. The record in 
this proceeding demonstrates the need for, and reasonableness of, 
expediting the siting review of certain facility deployments. More 
streamlined procedures are both reasonable and necessary to provide 
greater predictability. The current shot clocks do not reflect the 
evolution of the application review process and evidence that 
localities can complete reviews more quickly than was the case when the 
original shot clocks were adopted nine years ago. Localities have 
gained significant experience processing wireless siting applications 
and several jurisdictions already have in place laws that require 
applications to be processed in less time than the Commission's new 
shot clocks. With the passage of time, sitting agencies have become 
more efficient in processing siting applications and this, in turn, 
should reduce any economic burden the Commission's new shot clock 
provisions have on them.
    79. The Commission has carefully considered the impact of its new 
shot clocks on siting authorities and has established shot clocks that 
take into consideration the nature and scope of siting requests by 
establishing shot clocks of different lengths of time that depend on 
the nature of the siting request at issue. The length of these shot 
clocks is based in part on the need to ensure that local governments 
have ample time to take any steps needed to protect public safety and 
welfare and to process other pending utility applications. Since local 
siting authorities have gained experience in processing siting requests 
in an expedited fashion, they should be able to comply with the 
Commission's new shot clocks.
    80. The Commission has taken into consideration the concerns of the 
Smart Cities and Special Districts Coalition and NATOA. It has 
established shot clocks that will not favor wireless providers over 
other applicants with pending siting applications. Further, instead of 
adopting a deemed granted remedy that would grant a siting application 
when a shot clock lapses without a decision on the merits, the 
Commission provides guidance as to the appropriate judicial remedy that 
applicants may pursue and examples of exceptional circumstance where a 
siting authority may be justified in needing additional time to review 
a siting application then the applicable shot clock allows. Under this 
approach, the applicant may seek injunctive relief as long as several 
minimum requirements are met. The siting authority, however, can rebut 
the presumptive reasonableness of the applicable shot clock under 
certain circumstances. The circumstances under which a sitting 
authority might have to do this will be rare. Under this carefully 
crafted approach, the interests of siting applicants, siting 
authorities, and citizens are protected.
3. Response to Comments by the Chief Counsel for Advocacy of the Small 
Business Administration
    81. Pursuant to the Small Business Jobs Act of 2010, which amended 
the RFA, the Commission is required to respond to any comments filed by 
the Chief Counsel for Advocacy of the Small Business Administration 
(SBA), and to provide a detailed statement of any change made to the 
proposed rules as a result of those comments.
    82. The Chief Counsel did not file any comments in response to the 
proposed rules in this proceeding.
4. Description and Estimate of the Number of Small Entities to Which 
the Rules Will Apply
    83. The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the rules adopted herein. The RFA generally defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one which: (1) Is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the SBA.
    84. Small Businesses, Small Organizations, Small Governmental 
Jurisdictions. The Commission's actions, over time, may affect small 
entities that are not easily categorized at present. The Commission 
therefore describe here, at the outset, three broad groups of small 
entities that could be directly affected herein. First, while there are 
industry specific size standards for small businesses that are used in 
the regulatory flexibility analysis, according to data from the SBA's 
Office of Advocacy, in general a small business is an independent 
business having fewer than 500 employees. These types of small 
businesses represent 99.9 percent of all businesses in the United 
States

[[Page 51879]]

which translates to 28.8 million businesses.
    85. Next, the type of small entity described as a ``small 
organization'' is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
Nationwide, as of August 2016, there were approximately 356,494 small 
organizations based on registration and tax data filed by nonprofits 
with the Internal Revenue Service (IRS).
    86. Finally, the small entity described as a ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' U.S. Census 
Bureau data from the 2012 Census of Governments indicate that there 
were 90,056 local governmental jurisdictions consisting of general 
purpose governments and special purpose governments in the United 
States. Of this number there were 37,132 General purpose governments 
(county, municipal and town or township) with populations of less than 
50,000 and 12,184 Special purpose governments (independent school 
districts and special districts) with populations of less than 50,000. 
The 2012 U.S. Census Bureau data for most types of governments in the 
local government category show that the majority of these governments 
have populations of less than 50,000. Based on this data the Commission 
estimates that at least 49,316 local government jurisdictions fall in 
the category of ``small governmental jurisdictions.''
    87. Wireless Telecommunications Carriers (except Satellite). This 
industry comprises establishments engaged in operating and maintaining 
switching and transmission facilities to provide communications via the 
airwaves. Establishments in this industry have spectrum licenses and 
provide services using that spectrum, such as cellular services, paging 
services, wireless internet access, and wireless video services. The 
appropriate size standard under SBA rules is that such a business is 
small if it has 1,500 or fewer employees. For this industry, U.S. 
Census data for 2012 show that there were 967 firms that operated for 
the entire year. Of this total, 955 firms had employment of 999 or 
fewer employees and 12 had employment of 1,000 employees or more. Thus 
under this category and the associated size standard, the Commission 
estimates that the majority of wireless telecommunications carriers 
(except satellite) are small entities.
    88. The Commission's own data--available in its Universal Licensing 
System--indicate that, as of May 17, 2018, there are 264 Cellular 
licensees that will be affected by the Commission's actions. The 
Commission does not know how many of these licensees are small, as the 
Commission does not collect that information for these types of 
entities. Similarly, according to Commission data, 413 carriers 
reported that they were engaged in the provision of wireless telephony, 
including cellular service, Personal Communications Service (PCS), and 
Specialized Mobile Radio (SMR) Telephony services. Of this total, an 
estimated 261 have 1,500 or fewer employees and 152 have more than 
1,500 employees. Thus, using available data, the Commission estimates 
that the majority of wireless firms can be considered small.
    89. Personal Radio Services. Personal radio services provide short-
range, low-power radio for personal communications, radio signaling, 
and business communications not provided for in other services. 
Personal radio services include services operating in spectrum licensed 
under part 95 of the Commission's rules. These services include Citizen 
Band Radio Service, General Mobile Radio Service, Radio Control Radio 
Service, Family Radio Service, Wireless Medical Telemetry Service, 
Medical Implant Communications Service, Low Power Radio Service, and 
Multi-Use Radio Service. There are a variety of methods used to license 
the spectrum in these rule parts, from licensing by rule, to 
conditioning operation on successful completion of a required test, to 
site-based licensing, to geographic area licensing. All such entities 
in this category are wireless, therefore the Commission applies the 
definition of Wireless Telecommunications Carriers (except Satellite), 
pursuant to which the SBA's small entity size standard is defined as 
those entities employing 1,500 or fewer persons. For this industry, 
U.S. Census data for 2012 show that there were 967 firms that operated 
for the entire year. Of this total, 955 firms had employment of 999 or 
fewer employees and 12 had employment of 1,000 employees or more. Thus, 
under this category and the associated size standard, the Commission 
estimates that the majority of firms can be considered small. The 
Commission notes however that many of the licensees in this category 
are individuals and not small entities. In addition, due to the mostly 
unlicensed and shared nature of the spectrum utilized in many of these 
services, the Commission lacks direct information upon which to base an 
estimation of the number of small entities that may be affected by the 
Commission's actions in this proceeding.
    90. Public Safety Radio Licensees. Public Safety Radio Pool 
licensees as a general matter, include police, fire, local government, 
forestry conservation, highway maintenance, and emergency medical 
services. Because of the vast array of public safety licensees, the 
Commission has not developed a small business size standard 
specifically applicable to public safety licensees. The closest 
applicable SBA category is Wireless Telecommunications Carriers (except 
Satellite) which encompasses business entities engaged in 
radiotelephone communications. The appropriate size standard for this 
category under SBA rules is that such a business is small if it has 
1,500 or fewer employees. For this industry, U.S. Census data for 2012 
show that there were 967 firms that operated for the entire year. Of 
this total, 955 firms had employment of 999 or fewer employees and 12 
had employment of 1,000 employees or more. Thus under this category and 
the associated size standard, the Commission estimates that the 
majority of firms can be considered small. With respect to local 
governments, in particular, since many governmental entities comprise 
the licensees for these services, the Commission includes under public 
safety services the number of government entities affected. According 
to Commission records, there are a total of approximately 133,870 
licenses within these services. There are 3,121 licenses in the 4.9 GHz 
band, based on an FCC Universal Licensing System search of March 29, 
2017. The Commission estimates that fewer than 2,442 public safety 
radio licensees hold these licenses because certain entities may have 
multiple licenses.
    91. Private Land Mobile Radio Licensees. Private land mobile radio 
(PLMR) systems serve an essential role in a vast range of industrial, 
business, land transportation, and public safety activities. These 
radios are used by companies of all sizes operating in all U.S. 
business categories. Because of the vast array of PLMR users, the 
Commission has not developed a small business size standard 
specifically applicable to PLMR users. The closest applicable SBA 
category is Wireless Telecommunications Carriers (except Satellite) 
which encompasses business entities engaged in radiotelephone 
communications. The appropriate size standard for this category under 
SBA

[[Page 51880]]

rules is that such a business is small if it has 1,500 or fewer 
employees. For this industry, U.S. Census data for 2012 show that there 
were 967 firms that operated for the entire year. Of this total, 955 
firms had employment of 999 or fewer employees and 12 had employment of 
1,000 employees or more. Thus, under this category and the associated 
size standard, the Commission estimates that the majority of PLMR 
Licensees are small entities.
    92. According to the Commission's records, a total of approximately 
400,622 licenses comprise PLMR users. Of this number there are a total 
of 3,374 licenses in the frequencies range 173.225 MHz to 173.375 MHz, 
which is the range affected by the Third Report and Order. The 
Commission does not require PLMR licensees to disclose information 
about number of employees and does not have information that could be 
used to determine how many PLMR licensees constitute small entities 
under this definition. The Commission however believes that a 
substantial number of PLMR licensees may be small entities despite the 
lack of specific information.
    93. Multiple Address Systems. Entities using Multiple Address 
Systems (MAS) spectrum, in general, fall into two categories: (1) Those 
using the spectrum for profit-based uses, and (2) those using the 
spectrum for private internal uses. With respect to the first category, 
Profit-based Spectrum use, the size standards established by the 
Commission define ``small entity'' for MAS licensees as an entity that 
has average annual gross revenues of less than $15 million over the 
three previous calendar years. A ``Very small business'' is defined as 
an entity that, together with its affiliates, has average annual gross 
revenues of not more than $3 million over the preceding three calendar 
years. The SBA has approved these definitions. The majority of MAS 
operators are licensed in bands where the Commission has implemented a 
geographic area licensing approach that requires the use of competitive 
bidding procedures to resolve mutually exclusive applications.
    94. The Commission's licensing database indicates that, as of April 
16, 2010, there were a total of 11,653 site-based MAS station 
authorizations. Of these, 58 authorizations were associated with common 
carrier service. In addition, the Commission's licensing database 
indicates that, as of April 16, 2010, there were a total of 3,330 
Economic Area market area MAS authorizations. The Commission's 
licensing database also indicates that, as of April 16, 2010, of the 
11,653 total MAS station authorizations, 10,773 authorizations were for 
private radio service. In 2001, an auction for 5,104 MAS licenses in 
176 EAs was conducted. Seven winning bidders claimed status as small or 
very small businesses and won 611 licenses. In 2005, the Commission 
completed an auction (Auction 59) of 4,226 MAS licenses in the Fixed 
Microwave Services from the 928/959 and 932/941 MHz bands. Twenty-six 
winning bidders won a total of 2,323 licenses. Of the 26 winning 
bidders in this auction, five claimed small business status and won 
1,891 licenses.
    95. With respect to the second category, Internal Private Spectrum 
use consists of entities that use, or seek to use, MAS spectrum to 
accommodate their own internal communications needs, MAS serves an 
essential role in a range of industrial, safety, business, and land 
transportation activities. MAS radios are used by companies of all 
sizes, operating in virtually all U.S. business categories, and by all 
types of public safety entities. For the majority of private internal 
users, the definition developed by the SBA would be more appropriate 
than the Commission's definition. The closest applicable definition of 
a small entity is the ``Wireless Telecommunications Carriers (except 
Satellite)'' definition under the SBA rules. The appropriate size 
standard under SBA rules is that such a business is small if it has 
1,500 or fewer employees. For this category, U.S. Census data for 2012 
show that there were 967 firms that operated for the entire year. Of 
this total, 955 firms had employment of 999 or fewer employees and 12 
had employment of 1,000 employees or more. Thus, under this category 
and the associated small business size standard, the Commission 
estimates that the majority of firms that may be affected by the 
Commission's action can be considered small.
    96. 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)).
    97. BRS--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. 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, the Commission estimates 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 there are approximately 86 incumbent BRS 
licensees that are considered small entities (18 incumbent BRS 
licensees do not meet the small business size standard). After adding 
the number of small business auction licensees to the number of 
incumbent licensees not already counted, the Commission finds that 
there are currently approximately 133 BRS licensees that are defined as 
small businesses under either the SBA or the Commission's rules.
    98. 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. Auction 86 concluded in 2009 with the sale of 61 licenses. 
Of the ten winning bidders, two bidders that claimed small business 
status won 4 licenses; one bidder that claimed very small business 
status won three licenses; and two bidders that claimed entrepreneur 
status won six licenses.
    99. EBS--The Educational Broadband Service has been included within 
the broad economic census category and SBA size standard for Wired 
Telecommunications Carriers since 2007. Wired Telecommunications 
Carriers are comprised of establishments primarily engaged in operating 
and/or providing access to transmission facilities and infrastructure 
that they own and/or lease for the transmission of voice, data, text, 
sound, and video using

[[Page 51881]]

wired telecommunications networks. Transmission facilities may be based 
on a single technology or a combination of technologies. The SBA's 
small business size standard for this category is all such firms having 
1,500 or fewer employees. U.S. Census Bureau data for 2012 show that 
there were 3,117 firms that operated that year. Of this total, 3,083 
operated with fewer than 1,000 employees. Thus, under this size 
standard, the majority of firms in this industry can be considered 
small. In addition to Census Bureau data, the Commission's Universal 
Licensing System indicates that as of October 2014, there are 2,206 
active EBS licenses. The Commission estimates that of these 2,206 
licenses, the majority are held by non-profit educational institutions 
and school districts, which are by statute defined as small businesses.
    100. Location and Monitoring Service (LMS). LMS systems use non-
voice radio techniques to determine the location and status of mobile 
radio units. For purposes of auctioning LMS licenses, the Commission 
has defined a ``small business'' as an entity that, together with 
controlling interests and affiliates, has average annual gross revenues 
for the preceding three years not to exceed $15 million. A ``very small 
business'' is defined as an entity that, together with controlling 
interests and affiliates, has average annual gross revenues for the 
preceding three years not to exceed $3 million. These definitions have 
been approved by the SBA. An auction for LMS licenses commenced on 
February 23, 1999 and closed on March 5, 1999. Of the 528 licenses 
auctioned, 289 licenses were sold to four small businesses.
    101. Television Broadcasting. This Economic Census category 
``comprises establishments primarily engaged in broadcasting images 
together with sound.'' These establishments operate television 
broadcast studios and facilities for the programming and transmission 
of programs to the public. These establishments also produce or 
transmit visual programming to affiliated broadcast television 
stations, which in turn broadcast the programs to the public on a 
predetermined schedule. Programming may originate in their own studio, 
from an affiliated network, or from external sources. The SBA has 
created the following small business size standard for such businesses: 
Those having $38.5 million or less in annual receipts. The 2012 
Economic Census reports that 751 firms in this category operated in 
that year. Of that number, 656 had annual receipts of $25,000,000 or 
less, 25 had annual receipts between $25,000,000 and $49,999,999 and 70 
had annual receipts of $50,000,000 or more. Based on this data the 
Commission therefore estimates that the majority of commercial 
television broadcasters are small entities under the applicable SBA 
size standard.
    102. The Commission has estimated the number of licensed commercial 
television stations to be 1,377. Of this total, 1,258 stations (or 
about 91 percent) had revenues of $38.5 million or less, according to 
Commission staff review of the BIA Kelsey Inc. Media Access Pro 
Television Database (BIA) on November 16, 2017, and therefore these 
licensees qualify as small entities under the SBA definition. In 
addition, the Commission has estimated the number of licensed 
noncommercial educational (NCE) television stations to be 384. 
Notwithstanding, the Commission does not compile and otherwise does not 
have access to information on the revenue of NCE stations that would 
permit it to determine how many such stations would qualify as small 
entities. There are also 2,300 low power television stations, including 
Class A stations (LPTV) and 3,681 TV translator stations. Given the 
nature of these services, the Commission will presume that all of these 
entities qualify as small entities under the above SBA small business 
size standard.
    103. The Commission notes, however, that in assessing whether a 
business concern qualifies as ``small'' under the above definition, 
business (control) affiliations must be included. The Commission 
estimates, therefore likely overstates the number of small entities 
that might be affected by its action, because the revenue figure on 
which it is based does not include or aggregate revenues from 
affiliated companies. In addition, another element of the definition of 
``small business'' requires that an entity not be dominant in its field 
of operation. The Commission is unable at this time to define or 
quantify the criteria that would establish whether a specific 
television broadcast station is dominant in its field of operation. 
Accordingly, the estimate of small businesses to which rules may apply 
does not exclude any television station from the definition of a small 
business on this basis and is therefore possibly over-inclusive. Also, 
as noted above, an additional element of the definition of ``small 
business'' is that the entity must be independently owned and operated. 
The Commission notes that it is difficult at times to assess these 
criteria in the context of media entities and its estimates of small 
businesses to which they apply may be over-inclusive to this extent.
    104. Radio Stations. This Economic Census category ``comprises 
establishments primarily engaged in broadcasting aural programs by 
radio to the public. Programming may originate in their own studio, 
from an affiliated network, or from external sources.'' The SBA has 
established a small business size standard for this category as firms 
having $38.5 million or less in annual receipts. Economic Census data 
for 2012 show that 2,849 radio station firms operated during that year. 
Of that number, 2,806 operated with annual receipts of less than $25 
million per year, 17 with annual receipts between $25 million and 
$49,999,999 million and 26 with annual receipts of $50 million or more. 
Therefore, based on the SBA's size standard the majority of such 
entities are small entities.
    105. According to Commission staff review of the BIA/Kelsey, LLC's 
Publications, Inc. Media Access Pro Radio Database (BIA) as of January 
2018, about 11,261 (or about 99.92 percent) of 11,270 commercial radio 
stations had revenues of $38.5 million or less and thus qualify as 
small entities under the SBA definition. The Commission has estimated 
the number of licensed commercial AM radio stations to be 4,633 
stations and the number of commercial FM radio stations to be 6,738, 
for a total number of 11,371. The Commission notes, that the Commission 
has also estimated the number of licensed NCE radio stations to be 
4,128. Nevertheless, the Commission does not compile and otherwise does 
not have access to information on the revenue of NCE stations that 
would permit it to determine how many such stations would qualify as 
small entities.
    106. The Commission also notes, that in assessing whether a 
business entity qualifies as small under the above definition, business 
control affiliations must be included. The Commission's estimate 
therefore likely overstates the number of small entities that might be 
affected by its action, because the revenue figure on which it is based 
does not include or aggregate revenues from affiliated companies. In 
addition, to be determined a ``small business,'' an entity may not be 
dominant in its field of operation. The Commission further notes, that 
it is difficult at times to assess these criteria in the context of 
media entities, and the estimate of small businesses to which these 
rules may apply does not exclude any radio station from the definition 
of a small business on these basis, thus the Commission's estimate of 
small businesses may therefore be over-inclusive. Also, as noted above, 
an additional element of the definition of ``small business'' is that

[[Page 51882]]

the entity must be independently owned and operated. The Commission 
notes that it is difficult at times to assess these criteria in the 
context of media entities and the estimates of small businesses to 
which they apply may be over-inclusive to this extent.
    107. FM Translator Stations and Low Power FM Stations. FM 
translators and Low Power FM Stations are classified in the category of 
Radio Stations and are assigned the same NAICS Code as licensees of 
radio stations. This U.S. industry, Radio Stations, comprises 
establishments primarily engaged in broadcasting aural programs by 
radio to the public. Programming may originate in their own studio, 
from an affiliated network, or from external sources. The SBA has 
established a small business size standard which consists of all radio 
stations whose annual receipts are $38.5 million dollars or less. U.S. 
Census Bureau data for 2012 indicate that 2,849 radio station firms 
operated during that year. Of that number, 2,806 operated with annual 
receipts of less than $25 million per year, 17 with annual receipts 
between $25 million and $49,999,999 million and 26 with annual receipts 
of $50 million or more. Therefore, based on the SBA's size standard, 
the Commission concludes that the majority of FM Translator Stations 
and Low Power FM Stations are small.
    108. Multichannel Video Distribution and Data Service (MVDDS). 
MVDDS is a terrestrial fixed microwave service operating in the 12.2-
12.7 GHz band. The Commission adopted criteria for defining three 
groups of small businesses for purposes of determining their 
eligibility for special provisions such as bidding credits. It defined 
a very small business as an entity with average annual gross revenues 
not exceeding $3 million for the preceding three years; a small 
business as an entity with average annual gross revenues not exceeding 
$15 million for the preceding three years; and an entrepreneur as an 
entity with average annual gross revenues not exceeding $40 million for 
the preceding three years. These definitions were approved by the SBA. 
On January 27, 2004, the Commission completed an auction of 214 MVDDS 
licenses (Auction No. 53). In this auction, ten winning bidders won a 
total of 192 MVDDS licenses. Eight of the ten winning bidders claimed 
small business status and won 144 of the licenses. The Commission also 
held an auction of MVDDS licenses on December 7, 2005 (Auction 63). Of 
the three winning bidders who won 22 licenses, two winning bidders, 
winning 21 of the licenses, claimed small business status.
    109. Satellite Telecommunications. This category comprises firms 
``primarily engaged in providing telecommunications services to other 
establishments in the telecommunications and broadcasting industries by 
forwarding and receiving communications signals via a system of 
satellites or reselling satellite telecommunications.'' Satellite 
telecommunications service providers include satellite and earth 
station operators. The category has a small business size standard of 
$32.5 million or less in average annual receipts, under SBA rules. For 
this category, U.S. Census Bureau data for 2012 show that there were a 
total of 333 firms that operated for the entire year. Of this total, 
299 firms had annual receipts of less than $25 million. Consequently, 
the Commission estimates that the majority of satellite 
telecommunications providers are small entities.
    110. All Other Telecommunications. The ``All Other 
Telecommunications'' category is comprised of establishments that are 
primarily engaged in providing specialized telecommunications services, 
such as satellite tracking, communications telemetry, and radar station 
operation. This industry also includes establishments primarily engaged 
in providing satellite terminal stations and associated facilities 
connected with one or more terrestrial systems and capable of 
transmitting telecommunications to, and receiving telecommunications 
from, satellite systems. Establishments providing internet services or 
voice over internet protocol (VoIP) services via client-supplied 
telecommunications connections are also included in this industry. The 
SBA has developed a small business size standard for ``All Other 
Telecommunications,'' which consists of all such firms with gross 
annual receipts of $32.5 million or less. For this category, U.S. 
Census data for 2012 show that there were 1,442 firms that operated for 
the entire year. Of these firms, a total of 1,400 had gross annual 
receipts of less than $25 million and 42 firms had annual receipts of 
$25 million to $49,999,999. Thus, a majority of ``All Other 
Telecommunications'' firms potentially affected by the Commission's 
action can be considered small.
    111. Fixed Microwave Services. Microwave services include common 
carrier, private-operational fixed, and broadcast auxiliary radio 
services. They also include the Local Multipoint Distribution Service 
(LMDS), the Digital Electronic Message Service (DEMS), the 39 GHz 
Service (39 GHz), the 24 GHz Service, and the Millimeter Wave Service 
where licensees can choose between common carrier and non-common 
carrier status. At present, there are approximately 66,680 common 
carrier fixed licensees, 69,360 private and public safety operational-
fixed licensees, 20,150 broadcast auxiliary radio licensees, 411 LMDS 
licenses, 33 24 GHz DEMS licenses, 777 39 GHz licenses, and five 24 GHz 
licenses, and 467 Millimeter Wave licenses in the microwave services. 
The Commission has not yet defined a small business size standard for 
microwave services. The closest applicable SBA category is Wireless 
Telecommunications Carriers (except Satellite) and the appropriate size 
standard for this category under SBA rules is that such a business is 
small if it has 1,500 or fewer employees. U.S. Census Bureau data for 
2012, show that there were 967 firms in this category that operated for 
the entire year. Of this total, 955 had employment of 999 or fewer, and 
12 firms had employment of 1,000 employees or more. Thus, under this 
category and the associated small business size standard, the 
Commission estimates that a majority of fixed microwave service 
licensees can be considered small.
    112. The Commission notes that the number of firms does not 
necessarily track the number of licensees. The Commission also notes 
that it 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. The Commission estimates however, that 
virtually all of the Fixed Microwave licensees (excluding broadcast 
auxiliary licensees) would qualify as small entities under the SBA 
definition.
    113. Non-Licensee Owners of Towers and Other Infrastructure. 
Although at one time most communications towers were owned by the 
licensee using the tower to provide communications service, many towers 
are now owned by third-party businesses that do not provide 
communications services themselves but lease space on their towers to 
other companies that provide communications services. The Commission's 
rules require that any entity, including a non-licensee, proposing to 
construct a tower over 200 feet in height or within the glide slope of 
an airport must register the tower with the Commission's Antenna 
Structure Registration (``ASR'') system and comply with applicable 
rules

[[Page 51883]]

regarding review for impact on the environment and historic properties.
    114. As of March 1, 2017, the ASR database includes approximately 
122,157 registration records reflecting a ``Constructed'' status and 
13,987 registration records reflecting a ``Granted, Not Constructed'' 
status. These figures include both towers registered to licensees and 
towers registered to non-licensee tower owners. The Commission does not 
keep information from which we can easily determine how many of these 
towers are registered to non-licensees or how many non-licensees have 
registered towers. Regarding towers that do not require ASR 
registration, we do not collect information as to the number of such 
towers in use and therefore cannot estimate the number of tower owners 
that would be subject to the rules on which the Commission seeks 
comment. Moreover, the SBA has not developed a size standard for small 
businesses in the category ``Tower Owners.'' Therefore, the Commission 
is unable to determine the number of non-licensee tower owners that are 
small entities. The Commission believes, however, that when all 
entities owning 10 or fewer towers and leasing space for collocation 
are included, non-licensee tower owners number in the thousands. In 
addition, there may be other non-licensee owners of other wireless 
infrastructure, including Distributed Antenna Systems (DAS) and small 
cells that might be affected by the measures on which the Commission 
seeks comment. The Commission does not have any basis for estimating 
the number of such non-licensee owners that are small entities.
    115. The closest applicable SBA category is All Other 
Telecommunications, and the appropriate size standard consists of all 
such firms with gross annual receipts of $32.5 million or less. For 
this category, U.S. Census data for 2012 show that there were 1,442 
firms that operated for the entire year. Of these firms, a total of 
1,400 had gross annual receipts of less than $25 million and 15 firms 
had annual receipts of $25 million to $49,999,999. Thus, under this SBA 
size standard a majority of the firms potentially affected by the 
Commission's action can be considered small.
5. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities
    116. The Third Report and Order does not establish any reporting, 
recordkeeping, or other compliance requirements for companies involved 
in wireless infrastructure deployment. In addition to not adopting any 
reporting, recordkeeping or other compliance requirements, the 
Commission takes significant steps to reduce regulatory impediments to 
infrastructure deployment and, therefore, to spur the growth of 
personal wireless services. Under the Commission's approach, small 
entities as well as large companies will be assured that their 
deployment requests will be acted upon within a reasonable period of 
time and, if their applications are not addressed within the 
established time frames, applicants may seek injunctive relief granting 
their siting applications. The Commission, therefore, has taken 
concrete steps to relieve companies of all sizes of uncertainly and has 
eliminated unnecessary delays.
    117. The Third Report and Order also does not impose any reporting 
or recordkeeping requirements on state and local governments. While 
some commenters argue that additional shot clock classifications would 
make the siting process needlessly complex without any proven benefits, 
the Commission concludes that any additional administrative burden from 
increasing the number of Section 332 shot clocks from two to four is 
outweighed by the likely significant benefit of regulatory certainty 
and the resulting streamlined deployment process. The Commission's 
actions are consistent with the statutory language of Section 332 and 
therefore reflect Congressional intent. Further, siting agencies have 
become more efficient in processing siting applications and will be 
able to take advantage of these efficiencies in meeting the new shot 
clocks. As a result, the additional shot clocks that the Commission 
adopts will foster the deployment of the latest wireless technology and 
serve consumer interests.
6. Steps Taken To Minimize the Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    118. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its approach, which may 
include the following four alternatives (among others): ``(1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance and reporting requirements under the rule for such small 
entities; (3) the use of performance rather than design standards; and 
(4) an exemption from coverage of the rule, or any part thereof, for 
such small entities.''
    119. The steps taken by the Commission in the Third Report and 
Order eliminate regulatory burdens for small entities as well as large 
companies that are involved with the deployment of person wireless 
services infrastructure. By establishing shot clocks and guidance on 
injunctive relief for personal wireless services infrastructure 
deployments, the Commission has standardized and streamlined the 
permitting process. These changes will significantly minimize the 
economic burden of the siting process on all entities, including small 
entities, involved in deploying personal wireless services 
infrastructure. The record shows that permitting delays imposes 
significant economic and financial burdens on companies with pending 
wireless infrastructure permits. Eliminating permitting delays will 
remove the associated cost burdens and enabling significant public 
interest benefits by speeding up the deployment of personal wireless 
services and infrastructure. In addition, siting agencies will be able 
to utilize the efficiencies that they have gained over the years 
processing siting applications to minimize financial impacts.
    120. The Commission considered but did not adopt proposals by 
commenters to issue ``Best Practices'' or ``Recommended Practices,'' 
and to develop an informal dispute resolution process and mediation 
program, noting that the steps taken in the Third Report and Order 
address the concerns underlying these proposals to facilitate 
cooperation between parties to reach mutually agreed upon solutions. 
The Commission anticipates that the changes it has made to the 
permitting process will provide significant efficiencies in the 
deployment of personal wireless services facilities and this in turn 
will benefit all companies, but particularly small entities, that may 
not have the resources and economies of scale of larger entities to 
navigate the permitting process. By adopting these changes, the 
Commission will continue to fulfill its statutory responsibilities, 
while reducing the burden on small entities by removing unnecessary 
impediments to the rapid deployment of personal wireless services 
facilities and infrastructure across the country.
7. Report to Congress
    121. The Commission will send a copy of the Third Report and Order, 
including this FRFA, in a report to Congress pursuant to the 
Congressional Review Act. In addition, the

[[Page 51884]]

Commission will send a copy of the Third Report and Order, including 
this FRFA, to the Chief Counsel for Advocacy of the SBA. A copy of the 
Third Report and Order and FRFA (or summaries thereof) also will be 
published in the Federal Register.

B. Paperwork Reduction Act

    122. This Third Report and Order does not contain new or revised 
information collection requirements subject to the Paperwork Reduction 
Act of 1995 (PRA), Public Law 104-13.

C. Congressional Review Act

    123. The Commission will send a copy of this Declaratory Ruling and 
Third Report and Order in a report to be sent to Congress and the 
Government Accountability Office pursuant to the Congressional Review 
Act (CRA), see 5 U.S.C. 801(a)(1)(A).

IV. Ordering Clauses

    124. Accordingly, it is ordered, pursuant to sections 1, 4(i)-(j), 
7, 201, 253, 301, 303, 309, 319, and 332 of the Communications Act of 
1934, as amended, 47 U.S.C. 151, 154(i)-(j), 157, 201, 253, 301, 303, 
309, 319, 332, that this Declaratory Ruling and Third Report and Order 
in WT Docket No. 17-79 is hereby adopted.
    125. It is further ordered that part 1 of the Commission's rules is 
amended as set forth in the final rules of this Declaratory Ruling and 
Third Report and Order, and that these changes shall be effective 
January 14, 2019.
    126. It is further ordered that this Third Report and Order shall 
be effective January 14, 2019. The Declaratory Ruling and the 
obligations set forth therein are effective on the same day that this 
Third Report and Order becomes effective. It is our intention in 
adopting the foregoing Declaratory Ruling and these rule changes that, 
if any provision of the Declaratory Ruling or the rules, or the 
application thereof to any person or circumstance, is held to be 
unlawful, the remaining portions of such Declaratory Ruling and the 
rules not deemed unlawful, and the application of such Declaratory 
Ruling and the rules to other person or circumstances, shall remain in 
effect to the fullest extent permitted by law.
    127. It is further ordered that, pursuant to 47 CFR 1.4(b)(1), the 
period for filing petitions for reconsideration or petitions for 
judicial review of this Declaratory Ruling and Third Report and Order 
will commence on the date that a summary of this Declaratory Ruling and 
Third Report and Order is published in the Federal Register.
    128. It is further ordered that the Commission's Consumer & 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Declaratory Ruling and Third Report and Order, including 
the Final Regulatory Flexibility Analysis, to the Chief Counsel for 
Advocacy of the Small Business Administration.
    129. It is further ordered that this Declaratory Ruling and Third 
Report and Order shall be sent to Congress and the Government 
Accountability Office pursuant to the Congressional Review Act, see 5 
U.S.C. 801(a)(1)(A).

List of Subjects in 47 CFR Part 1

    Communications common carriers, Communications equipment, 
Environmental protection, Historic preservation, Radio, 
Telecommunications.

Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer, Office of the Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

    Authority: 47 U.S.C. chs. 2, 5, 9, 13; Sec. 102(c), Div. P, 
Public Law 115-141, 132 Stat. 1084; 28 U.S.C. 2461, unless otherwise 
noted.


0
2. Add subpart U, consisting of Sec. Sec.  1.6001 through 1.6003, to 
read as follows:

Subpart U--State and Local Government Regulation of the Placement, 
Construction, and Modification of Personal Wireless Service 
Facilities

Sec.
1.6001 Purpose.
1.6002 Definitions.
1.6003 Reasonable periods of time to act on siting applications.


Sec.  1.6001   Purpose.

    This subpart implements 47 U.S.C. 332(c)(7) and 1455.


Sec.  1.6002  Definitions.

    Terms not specifically defined in this section or elsewhere in this 
subpart have the meanings defined in this part and the Communications 
Act of 1934, 47 U.S.C. 151 et seq. Terms used in this subpart have the 
following meanings:
    (a) Action or to act on a siting application means a siting 
authority's grant of a siting application or issuance of a written 
decision denying a siting application.
    (b) Antenna, consistent with Sec.  1.1320(d), means an apparatus 
designed for the purpose of emitting radiofrequency (RF) radiation, to 
be operated or operating from a fixed location pursuant to Commission 
authorization, for the provision of personal wireless service and any 
commingled information services. For purposes of this definition, the 
term antenna does not include an unintentional radiator, mobile 
station, or device authorized under part 15 of this chapter.
    (c) Antenna equipment, consistent with Sec.  1.1320(d), means 
equipment, switches, wiring, cabling, power sources, shelters or 
cabinets associated with an antenna, located at the same fixed location 
as the antenna, and, when collocated on a structure, is mounted or 
installed at the same time as such antenna.
    (d) Antenna facility means an antenna and associated antenna 
equipment.
    (e) Applicant means a person or entity that submits a siting 
application and the agents, employees, and contractors of such person 
or entity.
    (f) Authorization means any approval that a siting authority must 
issue under applicable law prior to the deployment of personal wireless 
service facilities, including, but not limited to, zoning approval and 
building permit.
    (g) Collocation, consistent with Sec.  1.1320(d) and the Nationwide 
Programmatic Agreement (NPA) for the Collocation of Wireless Antennas, 
appendix B of this part, section I.B, means--
    (1) Mounting or installing an antenna facility on a pre-existing 
structure; and/or
    (2) Modifying a structure for the purpose of mounting or installing 
an antenna facility on that structure.
    (3) The definition of ``collocation'' in Sec.  1.6100(b)(2) applies 
to the term as used in that section.
    (h) Deployment means placement, construction, or modification of a 
personal wireless service facility.
    (i) Facility or personal wireless service facility means an antenna 
facility or a structure that is used for the provision of personal 
wireless service, whether such service is provided on a stand-alone 
basis or commingled with other wireless communications services.
    (j) Siting application or application means a written submission to 
a siting authority requesting authorization for the deployment of a 
personal wireless service facility at a specified location.

[[Page 51885]]

    (k) Siting authority means a State government, local government, or 
instrumentality of a State government or local government, including 
any official or organizational unit thereof, whose authorization is 
necessary prior to the deployment of personal wireless service 
facilities.
    (l) Small wireless facilities, consistent with Sec.  1.1312(e)(2), 
are facilities that meet each of the following conditions:
    (1) The facilities--
    (i) Are mounted on structures 50 feet or less in height including 
their antennas as defined in Sec.  1.1320(d); or
    (ii) Are mounted on structures no more than 10 percent taller than 
other adjacent structures; or
    (iii) Do not extend existing structures on which they are located 
to a height of more than 50 feet or by more than 10 percent, whichever 
is greater;
    (2) Each antenna associated with the deployment, excluding 
associated antenna equipment (as defined in the definition of 
``antenna'' in Sec.  1.1320(d)), is no more than three cubic feet in 
volume;
    (3) All other wireless equipment associated with the structure, 
including the wireless equipment associated with the antenna and any 
pre-existing associated equipment on the structure, is no more than 28 
cubic feet in volume;
    (4) The facilities do not require antenna structure registration 
under part 17 of this chapter;
    (5) The facilities are not located on Tribal lands, as defined 
under 36 CFR 800.16(x); and
    (6) The facilities do not result in human exposure to 
radiofrequency radiation in excess of the applicable safety standards 
specified in Sec.  1.1307(b).
    (m) Structure means a pole, tower, base station, or other building, 
whether or not it has an existing antenna facility, that is used or to 
be used for the provision of personal wireless service (whether on its 
own or comingled with other types of services).


Sec.  1.6003   Reasonable periods of time to act on siting 
applications.

    (a) Timely action required. A siting authority that fails to act on 
a siting application on or before the shot clock date for the 
application, as defined in paragraph (e) of this section, is presumed 
not to have acted within a reasonable period of time.
    (b) Shot clock period. The shot clock period for a siting 
application is the sum of--
    (1) The number of days of the presumptively reasonable period of 
time for the pertinent type of application, pursuant to paragraph (c) 
of this section; plus
    (2) The number of days of the tolling period, if any, pursuant to 
paragraph (d) of this section.
    (c) Presumptively reasonable periods of time--(1) Review periods 
for individual applications. The following are the presumptively 
reasonable periods of time for action on applications seeking 
authorization for deployments in the categories set forth in paragraphs 
(c)(1)(i) through (iv) of this section:
    (i) Review of an application to collocate a Small Wireless Facility 
using an existing structure: 60 days.
    (ii) Review of an application to collocate a facility other than a 
Small Wireless Facility using an existing structure: 90 days.
    (iii) Review of an application to deploy a Small Wireless Facility 
using a new structure: 90 days.
    (iv) Review of an application to deploy a facility other than a 
Small Wireless Facility using a new structure: 150 days.
    (2) Batching. (i) If a single application seeks authorization for 
multiple deployments, all of which fall within a category set forth in 
either paragraph (c)(1)(i) or (iii) of this section, then the 
presumptively reasonable period of time for the application as a whole 
is equal to that for a single deployment within that category.
    (ii) If a single application seeks authorization for multiple 
deployments, the components of which are a mix of deployments that fall 
within paragraph (c)(1)(i) of this section and deployments that fall 
within paragraph (c)(1)(iii) of this section, then the presumptively 
reasonable period of time for the application as a whole is 90 days.
    (iii) Siting authorities may not refuse to accept applications 
under paragraphs (c)(2)(i) and (ii) of this section.
    (d) Tolling period. Unless a written agreement between the 
applicant and the siting authority provides otherwise, the tolling 
period for an application (if any) is as set forth in paragraphs (d)(1) 
through (3) of this section.
    (1) For an initial application to deploy Small Wireless Facilities, 
if the siting authority notifies the applicant on or before the 10th 
day after submission that the application is materially incomplete, and 
clearly and specifically identifies the missing documents or 
information and the specific rule or regulation creating the obligation 
to submit such documents or information, the shot clock date 
calculation shall restart at zero on the date on which the applicant 
submits all the documents and information identified by the siting 
authority to render the application complete.
    (2) For all other initial applications, the tolling period shall be 
the number of days from--
    (i) The day after the date when the siting authority notifies the 
applicant in writing that the application is materially incomplete and 
clearly and specifically identifies the missing documents or 
information that the applicant must submit to render the application 
complete and the specific rule or regulation creating this obligation; 
until
    (ii) The date when the applicant submits all the documents and 
information identified by the siting authority to render the 
application complete;
    (iii) But only if the notice pursuant to paragraph (d)(2)(i) of 
this section is effectuated on or before the 30th day after the date 
when the application was submitted; or
    (3) For resubmitted applications following a notice of deficiency, 
the tolling period shall be the number of days from--
    (i) The day after the date when the siting authority notifies the 
applicant in writing that the applicant's supplemental submission was 
not sufficient to render the application complete and clearly and 
specifically identifies the missing documents or information that need 
to be submitted based on the siting authority's original request under 
paragraph (d)(1) or (2) of this section; until
    (ii) The date when the applicant submits all the documents and 
information identified by the siting authority to render the 
application complete;
    (iii) But only if the notice pursuant to paragraph (d)(3)(i) of 
this section is effectuated on or before the 10th day after the date 
when the applicant makes a supplemental submission in response to the 
siting authority's request under paragraph (d)(1) or (2) of this 
section.
    (e) Shot clock date. The shot clock date for a siting application 
is determined by counting forward, beginning on the day after the date 
when the application was submitted, by the number of calendar days of 
the shot clock period identified pursuant to paragraph (b) of this 
section and including any pre-application period asserted by the siting 
authority; provided, that if the date calculated in this manner is a 
``holiday'' as defined in Sec.  1.4(e)(1) or a legal holiday within the 
relevant State or local jurisdiction, the shot clock date is the next 
business day after such date. The term ``business day'' means any day 
as defined in Sec.  1.4(e)(2) and any day that is not a legal holiday 
as defined by the State or local jurisdiction.

[[Page 51886]]

Sec.  1.40001  [Redesignated as Sec.  1.6100 and Amended]

0
3. Redesignate Sec.  1.40001 as Sec.  1.6100 and, in newly redesignated 
Sec.  1.6100, remove and reserve paragraph (a).

Subpart CC--[Removed]

0
4. Remove subpart CC.

[FR Doc. 2018-22234 Filed 10-12-18; 8:45 am]
BILLING CODE 6712-01-P



                                                              Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations                                                     51867

                                             Energy Supply, Distribution, or Use’’ (66               submit a report containing this rule and                                                           Parts per
                                                                                                                                                                              Commodity
                                             FR 28355, May 22, 2001) or Executive                    other required information to the U.S.                                                              million
                                             Order 13045, entitled ‘‘Protection of                   Senate, the U.S. House of
                                             Children from Environmental Health                      Representatives, and the Comptroller                            *       *        *             *            *
                                             Risks and Safety Risks’’ (62 FR 19885,                  General of the United States prior to                        Plum subgroup 12–12C ..............            0.15
                                             April 23, 1997); or Executive Order                     publication of the rule in the Federal                           *        *           *        *            *
                                             13771, entitled ‘‘Reducing Regulations                  Register. This action is not a ‘‘major
                                             and Controlling Regulatory Costs’’ (82                  rule’’ as defined by 5 U.S.C. 804(2).                        *       *    *     *         *
                                             FR 9339, February 3, 2017). This action                                                                              [FR Doc. 2018–22279 Filed 10–12–18; 8:45 am]
                                             does not contain any information                        List of Subjects in 40 CFR Part 180
                                                                                                                                                                  BILLING CODE 6560–50–P
                                             collections subject to OMB approval                       Environmental protection,
                                             under the Paperwork Reduction Act                       Administrative practice and procedure,
                                             (PRA) (44 U.S.C. 3501 et seq.), nor does                Agricultural commodities, Pesticides
                                             it require any special considerations                   and pests, Reporting and recordkeeping                       FEDERAL COMMUNICATIONS
                                             under Executive Order 12898, entitled                   requirements.                                                COMMISSION
                                             ‘‘Federal Actions to Address                              Dated: October 2, 2018.                                    47 CFR Part 1
                                             Environmental Justice in Minority                       Michael L. Goodis,
                                             Populations and Low-Income                                                                                           [WT Docket No. 17–79, WC Docket No. 17–
                                                                                                     Director, Registration Division, Office of                   84; FCC 18–133]
                                             Populations’’ (59 FR 7629, February 16,                 Pesticide Programs.
                                             1994).                                                    Therefore, 40 CFR chapter I is
                                                Since tolerances and exemptions that                                                                              Accelerating Wireless and Wireline
                                                                                                     amended as follows:                                          Broadband Deployment by Removing
                                             are established on the basis of a petition
                                             under FFDCA section 408(d), such as                                                                                  Barriers to Infrastructure Investment
                                                                                                     PART 180—[AMENDED]
                                             the tolerance in this final rule, do not                                                                             AGENCY:  Federal Communications
                                             require the issuance of a proposed rule,                ■ 1. The authority citation for part 180                     Commission.
                                             the requirements of the Regulatory                      continues to read as follows:                                ACTION: Final rule.
                                             Flexibility Act (RFA) (5 U.S.C. 601 et                      Authority: 21 U.S.C. 321(q), 346a and 371.
                                             seq.), do not apply.                                                                                                 SUMMARY:    In this document, the Federal
                                                This action directly regulates growers,              ■  2. Amend the table in § 180.593(a) as
                                                                                                     follows:                                                     Communications Commission
                                             food processors, food handlers, and food                                                                             (‘‘Commission’’ or ‘‘FCC’’) issues
                                                                                                     ■ a. Add alphabetically the entries for
                                             retailers, not States or tribes, nor does                                                                            guidance and adopts rules to streamline
                                             this action alter the relationships or                  ‘‘Cherry subgroup 12–12A’’; ‘‘Corn,
                                                                                                     sweet, forage’’; ‘‘Corn, sweet, kernel                       the wireless infrastructure siting review
                                             distribution of power and                                                                                            process to facilitate the deployment of
                                             responsibilities established by Congress                plus cob with husks removed’’; ‘‘Corn,
                                                                                                     sweet, stover’’; ‘‘Cottonseed subgroup                       next-generation wireless facilities.
                                             in the preemption provisions of FFDCA                                                                                Specifically, in the Declaratory Ruling,
                                             section 408(n)(4). As such, the Agency                  20C’’; ‘‘Fruit, pome, group 11–10’’;
                                                                                                     ‘‘Nut, tree group 14–12’’; Peach                             the Commission identifies specific fee
                                             has determined that this action will not                                                                             levels for the deployment of Small
                                             have a substantial direct effect on States              subgroup 12–12B’’; and ‘‘Plum subgroup
                                                                                                     12–12C’’.                                                    Wireless Facilities, and it addresses
                                             or tribal governments, on the                                                                                        state and local consideration of aesthetic
                                                                                                     ■ b. Remove the entries for ‘‘Cotton,
                                             relationship between the national                                                                                    concerns that effect the deployment of
                                                                                                     undelinted seed’’; ‘‘Fruit, pome, group
                                             government and the States or tribal                                                                                  Small Wireless Facilities. In the Order,
                                                                                                     11’’; ‘‘Fruit, stone, group 12, except
                                             governments, or on the distribution of                                                                               the Commission addresses the ‘‘shot
                                                                                                     plum’’; ‘‘Nut, tree, group 14’’;
                                             power and responsibilities among the                                                                                 clocks’’ governing the review of wireless
                                                                                                     ‘‘Pistachio’’; and ‘‘Plum.’’
                                             various levels of government or between                                                                              infrastructure deployments and
                                             the Federal Government and Indian                       § 180.593 Etoxazole; tolerances for                          establishes two new shot clocks for
                                             tribes. Thus, the Agency has determined                 residues.                                                    Small Wireless Facilities.
                                             that Executive Order 13132, entitled                          (a) * * *                                              DATES: Effective January 14, 2019.
                                             ‘‘Federalism’’ (64 FR 43255, August 10,
                                                                                                                                                                  FOR FURTHER INFORMATION CONTACT:
                                             1999) and Executive Order 13175,                                     Commodity                       Parts per
                                                                                                                                                   million        Jiaming Shang, Deputy Chief (Acting)
                                             entitled ‘‘Consultation and Coordination
                                                                                                                                                                  Competition and Infrastructure Policy
                                             with Indian Tribal Governments’’ (65 FR
                                                                                                                                                                  Division, Wireless Telecommunications
                                             67249, November 9, 2000) do not apply
                                                                                                       *         *       *            *                 *         Bureau, (202) 418–1303, email
                                             to this action. In addition, this action                Cherry subgroup 12–12A ...........                     1.0   Jiaming.shang@fcc.gov.
                                             does not impose any enforceable duty or
                                             contain any unfunded mandate as                                                                                      SUPPLEMENTARY INFORMATION: This is a
                                                                                                        *         *          *               *          *
                                             described under Title II of the Unfunded                Corn, sweet, forage ....................               1.5
                                                                                                                                                                  summary of the Commission’s
                                             Mandates Reform Act (UMRA) (2 U.S.C.                    Corn, sweet, kernel plus cob                                 Declaratory Ruling and Third Report
                                             1501 et seq.).                                            with husks removed ................              0.01      and Order (Declaratory Ruling and
                                                This action does not involve any                     Corn, sweet, stover .....................           5.0      Order), WT Docket No. 17–79 and WC
                                             technical standards that would require                                                                               Docket No. 17–84; FCC 18–133, adopted
                                             Agency consideration of voluntary                          *         *        *            *               *         September 26, 2018 and released
                                                                                                     Cottonseed subgroup 20C .........                  0.05      September 27, 2018. The full text of this
                                             consensus standards pursuant to section
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                                                                                                     Fruit, pome, group 11–10 ...........               0.20      document is available for inspection
                                             12(d) of the National Technology
                                             Transfer and Advancement Act                                                                                         and copying during business hours in
                                                                                                        *         *        *              *             *
                                             (NTTAA) (15 U.S.C. 272 note).                           Nut, tree group 14–12 ................             0.01
                                                                                                                                                                  the FCC Reference Information Center,
                                                                                                                                                                  Portals II, 445 12th Street SW, Room
                                             VII. Congressional Review Act                                                                                        CY–A257, Washington, DC 20554. Also,
                                                                                                       *        *        *            *                 *
                                               Pursuant to the Congressional Review                  Peach subgroup 12–12B ............                     1.0   it may be purchased from the
                                             Act (5 U.S.C. 801 et seq.), EPA will                                                                                 Commission’s duplicating contractor at


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                                             51868            Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations

                                             Portals II, 445 12th Street SW, Room                    non-discriminatory. In this section, the              Payphone standard, a state or local legal
                                             CY–B402, Washington, DC 20554; the                      Commission also identifies specific fee               requirement could materially inhibit
                                             contractor’s website, http://                           levels for the deployment of Small                    service in numerous ways—not only by
                                             www.bcpiweb.com; or by calling (800)                    Wireless Facilities that presumptively                rendering a service provider unable to
                                             378–3160, facsimile (202) 488–5563, or                  comply with this standard. The                        provide an existing service in a new
                                             email FCC@BCPIWEB.com. Copies of                        Commission does so to help avoid                      geographic area or by restricting the
                                             the Declaratory Ruling and Order also                   unnecessary litigation, while                         entry of a new provider in providing
                                             may be obtained via the Commission’s                    recognizing that it is the standard itself,           service in a particular area, but also by
                                             Electronic Comment Filing System                        not the particular, presumptive fee                   materially inhibiting the introduction of
                                             (ECFS) by entering the docket number                    levels the Commission articulates, that               new services or the improvement of
                                             WT Docket 17–79 and WC Docket No.                       ultimately will govern whether a                      existing services. Thus, an effective
                                             17–84. Additionally, the complete item                  particular fee is allowed under Sections              prohibition includes materially
                                             is available on the Federal                             253 and 332. So, fees above those levels              inhibiting additional services or
                                             Communications Commission’s website                     would be permissible under Sections                   improving existing services.
                                             at http://www.fcc.gov.                                  253 and 332 to the extent a locality’s                   7. The Commission’s reading of
                                                                                                     actual, reasonable costs (as measured by              Section 253(a) and Section
                                             Synopsis                                                the standard above) are higher.                       332(c)(7)(B)(i)(II) reflects and supports a
                                             I. Declaratory Ruling                                      4. Finally, the Commission focuses on              marketplace in which services can be
                                                                                                     a subset of other, non-fee provisions of              offered in a multitude of ways with
                                                1. In the Declaratory Ruling, the
                                                                                                     state and local law that could also                   varied capabilities and performance
                                             Commission notes that a number of
                                                                                                     operate as prohibitions on service. The               characteristics consistent with the
                                             appellate courts have articulated
                                                                                                     Commission does so in particular by                   policy goals in the 1996 Act and the
                                             different and often conflicting views                   addressing state and local consideration              Communications Act. To limit Sections
                                             regarding the scope and nature of the                   of aesthetic concerns in the deployment               253(a) and 332(c)(7)(B)(i)(II) to
                                             limits Congress imposed on state and                    of Small Wireless Facilities. The                     protecting only against coverage gaps or
                                             local governments through Sections 253                  Commission notes that the Small                       the like would be to ignore Congress’s
                                             and 332. In light of these diverging                    Wireless Facilities that are the subject of           contemporaneously-expressed goals of
                                             views, Congress’s vision for a                          this Declaratory Ruling remain subject                ‘‘promot[ing] competition[,] . . .
                                             consistent, national policy framework,                  to the Commission’s rules governing                   secur[ing] . . . higher quality services
                                             and the need to ensure that the                         Radio Frequency (RF) emissions                        for American telecommunications
                                             Commission’s approach continues to                      exposure.                                             consumers and encourage[ing] the rapid
                                             make sense in light of the relatively new                                                                     deployment of new telecommunications
                                             trend towards the large-scale                           A. Overview of the Section 253 and
                                                                                                                                                           technologies.’’ In addition, as the
                                             deployment of Small Wireless Facilities,                Section 332(c)(7) Framework Relevant to
                                                                                                                                                           Commission recently explained, the
                                             the Commission takes the opportunity                    Small Wireless Facilities Deployment
                                                                                                                                                           implementation of the Act ‘‘must factor
                                             to clarify and update the FCC’s reading                    5. As an initial matter, the                       in the fundamental objectives of the Act,
                                             of the limits Congress imposed. The                     Commission notes that its Declaratory                 including the deployment of a ‘‘rapid,
                                             Commission does so in three main                        Ruling applies with equal measure to                  efficient . . . wire and radio
                                             respects.                                               the effective prohibition standard that               communication service with adequate
                                                2. First, the Commission expresses its               appears in both Sections 253(a) and                   facilities at reasonable charges’ and ‘the
                                             agreement with the views already stated                 332(c)(7). This ruling is consistent with             development and rapid deployment of
                                             by the First, Second, and Tenth Circuits                the basic canon of statutory                          new technologies, products and services
                                             that the ‘‘materially inhibit’’ standard                interpretation that identical words                   for the benefit of the public . . . without
                                             articulated in 1997 by the Clinton-era                  appearing in neighboring provisions of                administrative or judicial delays[, and]
                                             FCC’s California Payphone decision is                   the same statute should be interpreted                efficient and intensive use of the
                                             the appropriate standard for                            to have the same meaning. Moreover,                   electromagnetic spectrum.’ ’’ These
                                             determining whether a state or local law                both of these provisions apply to                     provisions demonstrate that the
                                             operates as a prohibition or effective                  wireless telecommunications services as               Commission’s interpretation of Section
                                             prohibition within the meaning of                       well as to commingled services and                    253 and Section 332(c)(7)(B)(i)(II) is in
                                             Sections 253 and 332.                                   facilities.                                           accordance with the broader goals of the
                                                3. Second, the Commission notes, as                     6. As explained in California                      various statutes that the Commission is
                                             numerous courts have recognized, that                   Payphone and reaffirmed here, a state or              entrusted to administer.
                                             state and local fees and other charges                  local legal requirement will have the                    8. California Payphone further
                                             associated with the deployment of                       effect of prohibiting wireless                        concluded that providers must be
                                             wireless infrastructure can effectively                 telecommunications services if it                     allowed to compete in a ‘‘fair and
                                             prohibit the provision of service. At the               materially inhibits the provision of such             balanced regulatory environment.’’ As
                                             same time, courts have articulated                      services. California Payphone Ass’n, 12               reflected in decisions such as the
                                             various approaches to determining the                   FCC Rcd 14191 (1997). The Commission                  Commission’s Texas PUC Order, a state
                                             types of fees that run afoul of Congress’s              clarifies that an effective prohibition               or local legal requirement can function
                                             limits in Sections 253 and 332. The                     occurs where a state or local legal                   as an effective prohibition either
                                             Commission thus clarifies the particular                requirement materially inhibits a                     because of the resulting ‘‘financial
                                             standard that governs the fees and                      provider’s ability to engage in any of a              burden’’ in an absolute sense, or,
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                                             charges that violate Sections 253 and                   variety of activities related to its                  independently, because of a resulting
                                             332 when it comes to the Small Wireless                 provision of a covered service. This test             competitive disparity. Public Utility
                                             Facilities at issue in this decision.                   is met not only when filling a coverage               Comm’n of Texas, et al., Pet. for Decl.
                                             Namely, fees are only permitted to the                  gap but also when densifying a wireless               Ruling and/or Preemption of Certain
                                             extent that they represent a reasonable                 network, introducing new services or                  Provisions of the Texas Pub. Util. Reg.
                                             approximation of the local government’s                 otherwise improving service                           Act of 1995, 13 FCC Rcd 3460 (1997).
                                             objectively reasonable costs and are                    capabilities. Under the California                    The Commission clarifies that ‘‘[a]


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                                                              Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations                                           51869

                                             regulatory structure that gives an                      local, regional or national level. The                intended for virtually identical language
                                             advantage to particular services or                     Commission is persuaded that providers                to have different meanings in the two
                                             facilities has a prohibitory effect, even if            and infrastructure builders, like all                 provisions. Instead, the Commission
                                             there are no express barriers to entry in               economic actors, have a finite (though                finds it more reasonable to conclude
                                             the state or local code; the greater the                perhaps fluid) amount of resources to                 that the language in both sections
                                             discriminatory effect, the more certain it              use for the deployment of infrastructure.             should be interpreted to have the same
                                             is that entities providing service using                This does not mean that these resources               meaning and to reflect the same
                                             the disfavored facilities will experience               are limitless, however. The Commission                standard, including with respect to
                                             prohibition.’’ This conclusion is                       concludes that fees imposed by                        preemption of fees that could ‘‘prohibit’’
                                             consistent with both Commission and                     localities, above and beyond the                      or have ‘‘the effect of prohibiting’’ the
                                             judicial precedent recognizing the                      recovery of localities’ reasonable costs,             provision of covered service. Both
                                             prohibitory effect that results from a                  materially and improperly inhibit                     sections were enacted to address
                                             competitor being treated materially                     deployment that could have occurred                   concerns about state and local
                                             differently than similarly-situated                     elsewhere. This and regulatory                        government practices that undermined
                                             providers. The Commission provides its                  uncertainty created by such effectively               providers’ ability to provide covered
                                             authoritative interpretation below of the               prohibitive conduct creates an                        services, and both bar state or local
                                             circumstances in which a ‘‘financial                    appreciable impact on resources that                  conduct that prohibits or has the effect
                                             burden,’’ as described in the Texas PUC                 materially limits plans to deploy                     of prohibiting service.
                                             Order, constitutes an effective                         service. This record evidence                            14. To be sure, Sections 253 and
                                             prohibition in the context of certain                   emphasizes the importance of                          332(c)(7) may relate to different
                                             state and local fees.                                   evaluating the effect of fees on Small                categories of state and local fees.
                                                                                                     Wireless Facility deployment on an                    Ultimately, the Commission needs not
                                             B. State and Local Fees                                                                                       resolve here the precise interplay
                                                                                                     aggregate basis. The record persuades
                                                9. Cognizant of the changing                         the Commission that fees associated                   between Sections 253 and 332(c)(7). It is
                                             technology and its interaction with                     with Small Wireless Facility                          enough for it to conclude that,
                                             regulations created for a previous                      deployment lead to ‘‘a substantial                    collectively, Congress intended for the
                                             generation of service, the Commission                   increase in costs’’—particularly when                 two provisions to cover the universe of
                                             sought comment on the scope of                          considered in the aggregate—thereby                   fees charged by state and local
                                             Sections 253 and 332(c)(7) and on any                   ‘‘plac[ing] a significant burden’’ on                 governments in connection with the
                                             new or updated guidance the                             carriers and materially inhibiting their              deployment of telecommunications
                                             Commission should provide, potentially                  provision of service contrary to Section              infrastructure. Given the analogous
                                             through a Declaratory Ruling. In                        253 of the Act.                                       purposes of both sections and the
                                             particular, the Commission sought                          12. The record reveals that fees above             consistent language used by Congress,
                                             comment on whether it should provide                    a reasonable approximation of cost,                   the Commission finds the phrase
                                             further guidance on how to interpret                    even when they may not be perceived                   ‘‘prohibit or have the effect of
                                             and apply the phrase ‘‘prohibit or have                 as excessive or likely to prohibit service            prohibiting’’ in Section 332(c)(7)(B)(i)(II)
                                             the effect of prohibiting.’’                            in isolation, will have the effect of                 should be construed as having the same
                                                10. The Commission concludes that                    prohibiting wireless service when the                 meaning and governed by the same
                                             ROW access fees, and fees for the use of                aggregate effects are considered,                     preemption standard as the nearly
                                             government property in the ROW, such                    particularly given the nature and                     identical language in Section 253(a).
                                             as light poles, traffic lights, utility poles,          volume of anticipated Small Wireless                     15. Application of the Interpretations
                                             and other similar property suitable for                 Facility deployment. The record reveals               and Principles Established Here.
                                             hosting Small Wireless Facilities, as                   that these effects can take several forms.            Consistent with the interpretations
                                             well as application or review fees and                  In some cases, the fees in a particular               above, the requirement that
                                             similar fees imposed by a state or local                jurisdiction will lead to reduced or                  compensation be limited to a reasonable
                                             government as part of their regulation of               entirely forgone deployment of Small                  approximation of objectively reasonable
                                             the deployment of Small Wireless                        Wireless Facilities in the near term for              costs and be non-discriminatory applies
                                             Facilities inside and outside the ROW,                  that jurisdiction. In other cases, where              to all state and local government fees
                                             violate Sections 253 or 332(c)(7) unless                it is essential for a provider to deploy              paid in connection with a provider’s use
                                             these conditions are met: (1) The fees                  in a given area, the fees charged in that             of the ROW to deploy Small Wireless
                                             are a reasonable approximation of the                   geographic area can deprive providers of              Facilities including, but not limited to,
                                             state or local government’s costs, (2)                  capital needed to deploy elsewhere, and               fees for access to the ROW itself, and
                                             only objectively reasonable costs are                   lead to reduced or forgone near-term                  fees for the attachment to or use of
                                             factored into those fees, and (3) the fees              deployment of Small Wireless Facilities               property within the ROW owned or
                                             are no higher than the fees charged to                  in other geographic areas. In both of                 controlled by the government (e.g.,
                                             similarly-situated competitors in similar               those scenarios the bottom-line outcome               street lights, traffic lights, utility poles,
                                             situations.                                             on the national development of 5G                     and other infrastructure within the
                                                11. Capital Expenditures. Apart from                 networks is the same—diminished                       ROW suitable for the placement of
                                             the text, structure, and legislative                    deployment of Small Wireless Facilities               Small Wireless Facilities). This
                                             history of the 1996 Act, an additional,                 critical for wireless service and building            interpretation applies with equal force
                                             independent justification for the                       out 5G networks.                                      to any fees reasonably related to the
                                             Commission’s interpretation follows                        13. Relationship to Section 332. The               placement, construction, maintenance,
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                                             from the simple, logical premise,                       Commission clarifies that the statutory               repair, movement, modification,
                                             supported by the record, that state and                 phrase ‘‘prohibit or have the effect of               upgrade, replacement, or removal of
                                             local fees in one place of deployment                   prohibiting’’ in Section 332(c)(7)(B)(i)(II)          Small Wireless Facilities within the
                                             necessarily have the effect of reducing                 has the same meaning as the phrase                    ROW, including, but not limited to,
                                             the amount of capital that providers can                ‘‘prohibits or has the effect of                      application or permit fees such as siting
                                             use to deploy infrastructure elsewhere,                 prohibiting’’ in Section 253(a). There is             applications, zoning variance
                                             whether the reduction takes place on a                  no evidence to suggest that Congress                  applications, building permits, electrical


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                                             51870            Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations

                                             permits, parking permits, or excavation                 recovers a reasonable approximation of                document the costs they may incur
                                             permits.                                                a state or local government’s objectively             when determining the fees they charge
                                                16. Applying the principles                          reasonable costs of, respectively,                    for Small Wireless Facilities within the
                                             established in this Declaratory Ruling, a               maintaining the ROW, maintaining a                    ROW. Moreover, in order to simplify
                                             variety of fees not reasonably tethered to              structure within the ROW, or processing               compliance, when a locality charges
                                             costs appear to violate Sections 253(a)                 an application or permit.                             both types of recurring fees identified
                                             or 332(c)(7) in the context of Small                       19. The existence of Section 253(c)                above (i.e., for access to the ROW and
                                             Wireless Facility deployments. For                      makes clear that Congress anticipated                 for use of or attachment to property in
                                             example, the Commission agrees with                     that ‘‘effective prohibitions’’ could                 the ROW), the Commission sees no
                                             courts that have recognized that gross                  result from state or local government                 reason for concern with how it has
                                             revenue fees generally are not based on                 fees, and intended through that clause                allocated costs between those two types
                                             the costs associated with an entity’s use               to provide protections in that respect, as            of fees. It is sufficient under the statute
                                             of the ROW, and where that is the case,                 discussed in greater detail herein.                   that the total of the two recurring fees
                                             are preempted under Section 253(a). In                  Against that backdrop, the Commission                 reflects the total costs involved. Fees
                                             addition, although the Commission                       finds it unlikely that Congress would                 that cannot ultimately be shown by a
                                             rejects calls to preclude a state or                    have left providers entirely at the mercy             state or locality to be a reasonable
                                             locality’s use of third party contractors               of effectively unconstrained                          approximation of their costs, such as
                                             or consultants, or to find all associated               requirements of state or local                        high fees designed to subsidize local
                                             compensation preempted, the                             governments. The Commission’s                         government costs in another geographic
                                             Commission makes clear that the                         interpretation of Section 253(c), in fact,            area or accomplish some public policy
                                             principles discussed herein regarding                   is consistent with the views of many                  objective beyond the providers’ use of
                                             the reasonableness of cost remain                       municipal commenters, at least with                   the ROW, are not ‘‘fair and reasonable
                                             applicable. Thus, fees must not only be                 respect to one-time permit or                         compensation . . . for use of the public
                                             limited to a reasonable approximation of                application fees, and the members of the              rights-of-way’’ under Section 253(c).
                                             costs, but in order to be reflected in fees             BDAC Ad Hoc Committee on Rates and                    Likewise, the Commission agrees with
                                             the costs themselves must also be                       Fees who unanimously concurred that                   both industry and municipal
                                             reasonable. Accordingly, any                            one-time fees for municipal applications              commenters that excessive and arbitrary
                                             unreasonably high costs, such as                        and permits, such as an electrical                    consulting fees or other costs should not
                                             excessive charges by third party                        inspection or a building permit, should               be recoverable as ‘‘fair and reasonable
                                             contractors or consultants, may not be                  be based on the cost to the government                compensation,’’ because they are not a
                                             passed on through fees even though                      of processing that application. The Ad                function of the provider’s ‘‘use’’ of the
                                             they are an actual ‘‘cost’’ to the                      Hoc Committee noted that ‘‘[the] cost-                public ROW.
                                             government. If a locality opts to incur                 based fee structure [for one-time fees]                  22. In addition to requiring that
                                             unreasonable costs, Sections 253 and                    unanimously approved by the                           compensation be ‘‘fair and reasonable,’’
                                             332(c)(7) do not permit it to pass those                committee accommodates the different                  Section 253(c) requires that it be
                                             costs on to providers. Fees that depart                 siting related costs that different                   ‘‘competitively neutral and
                                             from these principles are not saved by                  localities may incur to review, and                   nondiscriminatory.’’ The Commission
                                             Section 253(c), as the Commission                       process permit applications, while                    has previously interpreted this language
                                             discusses below.                                        precluding excessive fees that impede                 to prohibit states and localities from
                                                17. Interpretation of Section 253(c) in              deployment.’’ The Commission finds                    charging fees on new entrants and not
                                             the Context of Fees. In this section, the               that the same reasoning should apply to               on incumbents. Courts have similarly
                                             Commission turns to the interpretation                  other state and local government fees                 found that states and localities may not
                                             of several provisions in Section 253(c),                such as ROW access fees or fees for the               impose a range of fees on one provider
                                             which provides that state or local action               use of government property within the                 but not on another and even some
                                             that otherwise would be subject to                      ROW.                                                  municipal commenters acknowledge
                                             preemption under Section 253(a) may                        20. The Commission recognizes that                 that governments should not
                                             be permissible if it meets specified                    state and local governments incur a                   discriminate on the fees charged to
                                             criteria. Section 253(c) expressly                      variety of direct and actual costs in                 different providers. The record reflects
                                             provides that state or local governments                connection with Small Wireless                        continuing concerns from providers,
                                             may require telecommunications                          Facilities, such as the cost for staff to             however, that they face discriminatory
                                             providers to pay ‘‘fair and reasonable                  review the provider’s siting application,             charges. The Commission reiterates its
                                             compensation’’ for use of public ROWs                   costs associated with a provider’s use of             previous determination that state and
                                             but requires that the amounts of any                    the ROW, and costs associated with                    local governments may not impose fees
                                             such compensation be ‘‘competitively                    maintaining the ROW itself or structures              on some providers that they do not
                                             neutral and nondiscriminatory’’ and                     within the ROW to which Small                         impose on others. The Commission
                                             ‘‘publicly disclosed.’’                                 Wireless Facilities are attached. The                 would also be concerned about fees,
                                                18. The Commission interprets the                    Commission also recognizes that direct                whether one-time or recurring, related
                                             ambiguous phrase ‘‘fair and reasonable                  and actual costs may vary by location,                to Small Wireless Facilities, that exceed
                                             compensation,’’ within the statutory                    scope, and extent of providers’ planned               the fees for other wireless
                                             framework it outlined for Section 253,                  deployments, such that different                      telecommunications infrastructure in
                                             to allow state or local governments to                  localities will have different fees under             similar situations, and to the extent that
                                             charge fees that recover a reasonable                   the interpretation set forth in this                  different fees are charged for similar use
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                                             approximation of the state or local                     Declaratory Ruling.                                   of the public ROW.
                                             governments’ actual and reasonable                         21. Because the Commission                            23. Fee Levels Likely to Comply with
                                             costs. The Commission concludes that                    interprets fair and reasonable                        Section 253. The Commission’s
                                             an appropriate yardstick for ‘‘fair and                 compensation as a reasonable                          interpretations of Section 253(a) and
                                             reasonable compensation,’’ and                          approximation of costs, it does not                   ‘‘fair and reasonable compensation’’
                                             therefore an indicator of whether a fee                 suggest that localities must use any                  under Section 253(c) provides guidance
                                             violates Section 253(c), is whether it                  specific accounting method to                         for local and state fees charged with


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                                                              Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations                                          51871

                                             respect to one-time fees generally, and                 Allowing localities to charge fees above              implement lawful rules, enable
                                             recurring fees for deployments in the                   these levels upon this showing                        providers to comply with these
                                             ROW. Following suggestions for the                      recognizes local variances in costs.                  requirements, and facilitate the
                                             Commission to ‘‘establish a                                                                                   resolution of disputes. The Commission
                                                                                                     C. Other State and Local Requirements
                                             presumptively reasonable ‘safe harbor’                                                                        concludes that aesthetics requirements
                                                                                                     That Govern Small Facilities
                                             for certain ROW and use fees,’’ and to                                                                        are not preempted if they are (1)
                                                                                                     Deployment
                                             facilitate the deployment of specific                                                                         reasonable, (2) no more burdensome
                                             types of infrastructure critical to the                    26. There are also other types of state            than those applied to other types of
                                             rollout of 5G in coming years, the                      and local land-use or zoning                          infrastructure deployments, and (3)
                                             Commission identifies in this section                   requirements that may restrict Small                  objective and published in advance.
                                             three particular types of fee scenarios                 Wireless Facility deployments to the                     30. Like fees, compliance with
                                             and supply specific guidance on                         degree that they have the effect of                   aesthetic requirements imposes costs on
                                             amounts that are presumptively not                      prohibiting service in violation of                   providers, and the impact on their
                                             prohibited by Section 253. Informed by                  Sections 253 and 332. In this section,                ability to provide service is just the
                                             the its review of information from a                    the Commission discusses how those                    same as the impact of fees. The
                                             range of sources, the Commission                        statutory provisions apply to                         Commission therefore draws on its
                                             concludes that fees at or below these                   requirements outside the fee context                  analysis of fees to address aesthetic
                                             amounts presumptively do not                            both generally, and with particular                   requirements. The Commission
                                             constitute an effective prohibition under               focus on aesthetic and undergrounding                 explained above that fees that merely
                                             Section 253(a) or Section 332(c)(7) and                 requirements.                                         require providers to bear the direct and
                                             are presumed to be ‘‘fair and reasonable                   27. As discussed above, a state or                 reasonable costs that their deployments
                                             compensation’’ under Section 253(c).                    local legal requirement constitutes an                impose on states and localities should
                                                24. Based on its review of the                       effective prohibition if it ‘‘materially              not be viewed as having the effect of
                                             Commission’s pole attachment rate                       limits or inhibits the ability of any                 prohibiting service and are permissible.
                                             formula, which would require fees                       competitor or potential competitor to                 Analogously, aesthetic requirements
                                             below the levels described in this                      compete in a fair and balanced legal and              that are reasonable in that they are
                                             paragraph, as well as small cell                        regulatory environment.’’ The                         technically feasible and reasonably
                                             legislation in twenty states, local                     Commission’s interpretation of that                   directed to avoiding or remedying the
                                             legislation from certain municipalities                 standard, as set forth above, applies                 intangible public harm of unsightly or
                                             in states that have not passed small cell               equally to fees and to non-fee legal                  out-of-character deployments are also
                                             legislation, and comments in the record,                requirements. And as with fees, Section               permissible. In assessing whether this
                                             the Commission presumes that the                        253 contains certain safe harbors that                standard has been met, aesthetic
                                             following fees would not be prohibited                  permit some legal requirements that                   requirements that are more burdensome
                                             by Section 253 or Section 332(c)(7): (a)                might otherwise be preempted by                       than those the state or locality applies
                                             $500 for non-recurring fees, including a                Section 253(a). Section 253(b) saves                  to similar infrastructure deployments
                                             single up-front application that includes               ‘‘requirements necessary to preserve and              are not permissible, because such
                                             up to five Small Wireless Facilities,                   advance universal service, protect the                discriminatory application evidences
                                             with an additional $100 for each Small                  public safety and welfare, ensure the                 that the requirements are not, in fact,
                                             Wireless Facility beyond five, or $1,000                continued quality of                                  reasonable and directed at remedying
                                             for non-recurring fees for a new pole                   telecommunications services, and                      the impact of the wireless infrastructure
                                             (i.e., not a collocation) intended to                   safeguard the rights of consumers. And                deployment. For example, a minimum
                                             support one or more Small Wireless                      Section 253(c) preserves state and local              spacing requirement that has the effect
                                             Facilities, and (b) $270 per Small                      authority to manage the public rights-of-             of materially inhibiting wireless service
                                             Wireless Facility per year for all                      way.                                                  would be considered an effective
                                             recurring fees, including any possible                     28. Given the wide variety of possible             prohibition of service.
                                             ROW access fee or fee for attachment to                 legal requirements, the Commission                       31. Finally, in order to establish that
                                             municipally-owned structures in the                     does not attempt here to determine                    they are reasonable and reasonably
                                             ROW.                                                    which of every possible non-fee legal                 directed to avoiding aesthetic harms,
                                                25. By presuming that fees at or below               requirements are preempted for having                 aesthetic requirements must be
                                             the levels above comply with Section                    the effect of prohibiting service,                    objective—i.e., they must incorporate
                                             253, the Commission assumes that there                  although the Commission’s discussion                  clearly-defined and ascertainable
                                             would be almost no litigation by                        of fees above should prove instructive in             standards, applied in a principled
                                             providers over fees set at or below these               evaluating specific requirements.                     manner—and must be published in
                                             levels. Likewise, the Commission’s                      Instead, the Commission focuses on                    advance. ‘‘Secret’’ rules that require
                                             review of the record, including the                     some specific types of requirements                   applicants to guess at what types of
                                             many state small cell bills passed to                   raised in the record and provide                      deployments will pass aesthetic muster
                                             date, indicate that there should be only                guidance on when those particular types               substantially increase providers’ costs
                                             very limited circumstances in which                     of requirements are preempted by the                  without providing any public benefit or
                                             localities can charge higher fees                       statute.                                              addressing any public harm. Providers
                                             consistent with the requirements of                        29. Aesthetics. The Commission                     cannot design or implement rational
                                             Section 253. In those limited                           sought comment on whether                             plans for deploying Small Wireless
                                             circumstances, a locality could prevail                 deployment restrictions based on                      Facilities if they cannot predict in
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                                             in charging fees that are above this level              aesthetic or similar factors are                      advance what aesthetic requirements
                                             by showing that such fees nonetheless                   widespread and, if so, how Sections 253               they will be obligated to satisfy to obtain
                                             comply with the limits imposed by                       and 332(c)(7) should be applied to them.              permission to deploy a facility at any
                                             Section 253—that is, that they are (1) a                The Commission provides guidance on                   given site.
                                             reasonable approximation of costs, (2)                  whether and in what circumstances                        32. The Commission appreciates that
                                             those costs themselves are reasonable,                  aesthetic requirements violate the Act.               at least some localities will require some
                                             and (3) are non-discriminatory.                         This will help localities develop and                 time to establish and publish aesthetics


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                                             51872            Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations

                                             standards that are consistent with this                 D. States and Localities Act in Their                 that Section 253(c) ‘‘makes explicit a
                                             Declaratory Ruling. Based on its review                 Regulatory Capacities When                            local government’s continuing authority
                                             and evaluation of commenters’                           Authorizing and Setting Terms for                     to issue construction permits regulating
                                             concerns, the Commission anticipates                    Wireless Infrastructure Deployment in                 how and when construction is
                                             that such publication should take no                    Public Rights of Way                                  conducted on roads and other public
                                             longer than 180 days after publication of                  35. The Commission confirms that it                rights-of-way;’’ the Commission
                                             this decision in the Federal Register.                  interpretations today extend to state and             concludes here that, as a general matter,
                                                33. Undergrounding requirements.                     local governments’ terms for access to                ‘‘manage[ment]’’ of the ROW includes
                                             The Commission understands that some                    public ROW that they own or control,                  any conduct that bears on access to and
                                             local jurisdictions have adopted                        including areas on, below, or above                   use of those ROW, notwithstanding any
                                             undergrounding provisions that require                  public roadways, highways, streets,                   attempts to characterize such conduct as
                                             infrastructure to be deployed below                     sidewalks, or similar property, as well               proprietary. This reading, coupled with
                                             ground based, at least in some                          as their terms for use of or attachment               Section 253(c)’s narrow scope, suggests
                                             circumstances, on the locality’s                        to government-owned property within                   that Congress’s omission of a blanket
                                             aesthetic concerns. A number of                         such ROW, such as light poles, traffic                proprietary exception to preemption
                                             providers have complained that these                    lights, and similar property suitable for             was intentional and thus that such
                                             types of requirements amount to an                      hosting Small Wireless Facilities. As                 conduct can be preempted under
                                             effective prohibition. In addressing this               explained below, for two alternative and              Section 253(a). The Commission
                                             issue, the Commission first reiterates                  independent reasons, the Commission                   therefore construes Section 253(c)’s
                                             that while undergrounding                               disagrees with state and local                        requirements, including the requirement
                                             requirements may well be permissible                    government commenters who assert                      that compensation be ‘‘fair and
                                             under state law as a general matter, any                that, in providing or denying access to               reasonable,’’ as applying equally to
                                             local authority to impose                               government-owned structures, these                    charges imposed via contracts and other
                                             undergrounding requirements under                       governmental entities function solely as              arrangements between a state or local
                                             state law does not remove the                           ‘‘market participants’’ whose rights                  government and a party engaged in
                                             imposition of such undergrounding                       cannot be subject to federal preemption               wireless facility deployment. This
                                             requirements from the provisions of                     under Section 253(a) or Section                       interpretation is consistent with Section
                                             Section 253. In this sense, the                         332(c)(7).                                            253(a)’s reference to ‘‘State or local legal
                                             Commission notes that a requirement                        36. First, this effort to differentiate            requirement[s],’’ which the Commission
                                             that all wireless facilities be deployed                between such governmental entities’                   has consistently construed to include
                                             underground would amount to an                          ‘‘regulatory’’ and ‘‘proprietary’’                    such agreements. In light of the
                                             effective prohibition given the                         capacities in order to insulate the latter            foregoing, whatever the force of the
                                             propagation characteristics of wireless                 from preemption ignores a fundamental                 market participant doctrine in other
                                             signals. Thus, undergrounding                           feature of the market participant                     contexts, the Commission believes the
                                             requirements can amount to effective                    doctrine. Specifically, Section 253(a)                language, legislative history, and
                                             prohibitions by materially inhibiting the               expressly preempts certain state and                  purpose of Sections 253(a) and (c) are
                                             deployment of wireless service.                         local ‘‘legal requirements’’ and makes                incompatible with the application of
                                                34. Minimum spacing requirements.                    no distinction between a state or                     this doctrine in this context. The
                                             Some parties complain of municipal                      locality’s regulatory and proprietary                 Commission observes once more that
                                             requirements regarding the spacing of                   conduct. Indeed, as the Commission has                ‘‘[o]ur conclusion that Congress
                                             wireless installations—i.e., mandating                  long recognized, Section 253(a)’s                     intended this language to be interpreted
                                             that facilities be sited at least 100, 500,             sweeping reference to ‘‘state [and] local             broadly is reinforced by the scope of
                                             or 1,000 feet, or some other minimum                    statute[s] [and] regulation[s]’’ and ‘‘other          section 253(d),’’ which ‘‘directs the
                                             distance, away from other facilities,                   State [and] local legal requirement[s]’’              Commission to preempt any statute,
                                             ostensibly to avoid excessive overhead                  demonstrates Congress’s intent ‘‘to                   regulation, or legal requirement
                                             ‘‘clutter’’ that would be visible from                  capture a broad range of state and local              permitted or imposed by a state or local
                                             public areas. The Commission                            actions that prohibit or have the effect              government if it contravenes sections
                                             acknowledges that while some such                       of prohibiting entities from providing                253(a) or (b). A more restrictive
                                             requirements may violate 253(a), others                 telecommunications services.’’ Section                interpretation of the term ‘other legal
                                             may be reasonable aesthetic                             253(b) mentions ‘‘requirement[s],’’ a                 requirements’ easily could permit state
                                             requirements. For example, under the                    phrase that is even broader than that                 and local restrictions on competition to
                                             principle that any such requirements be                 used in Section 253(a) but covers                     escape preemption based solely on the
                                             reasonable and publicly available in                    ‘‘universal service,’’ ‘‘public safety and            way in which [State] action [is]
                                             advance, it is difficult to envision any                welfare,’’ ‘‘continued quality of                     structured. The Commission does not
                                             circumstances in which a municipality                   telecommunications,’’ and ‘‘safeguard[s               believe that Congress intended this
                                             could reasonably promulgate a new                       for the] rights of consumers.’’ The                   result.’’
                                             minimum spacing requirement that, in                    subsection does not recognize a                          37. Similarly, the Commission
                                             effect, prevents a provider from                        distinction between regulatory and                    interprets Section 332(c)(7)(B)(ii)’s
                                             replacing its preexisting facilities or                 proprietary. Section 253(c), which                    references to ‘‘any request[s] for
                                             collocating new equipment on a                          expressly insulates from preemption                   authorization to place, construct, or
                                             structure already in use. Such a rule                   certain state and local government                    modify personal wireless service
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                                             change with retroactive effect would                    activities, refers in relevant part to                facilities’’ broadly, consistent with
                                             almost certainly have the effect of                     ‘‘manag[ing] the public rights-of-way’’               Congressional intent. As described
                                             prohibiting service under the standards                 and ‘‘requir[ing] fair and reasonable                 below, the Commission finds that ‘‘any’’
                                             the Commission articulate here.                         compensation,’’ while eliding any                     is unqualifiedly broad, and that
                                             Therefore, such requirements should be                  distinction between regulatory and                    ‘‘request’’ encompasses anything
                                             evaluated under the same standards as                   proprietary action in either context. The             required to secure all authorizations
                                             other aesthetic requirements.                           Commission has previously observed                    necessary for the deployment of


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                                                              Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations                                         51873

                                             personal wireless services                              ROW as a pretext to advance regulatory                Section 332(c)(7)(B)(i)(II) because it
                                             infrastructure. In particular, the                      objectives that prohibit or have the                  prohibits or has the effect of prohibiting
                                             Commission finds that Section 332(c)(7)                 effect of prohibiting the provision of                the relevant covered service.
                                             includes authorizations relating to                     covered services, and thus that such                     42. The Commission’s interpretations
                                             access to a ROW, including but not                      conduct is preempted. The                             of Sections 253 and Section 332(c)(7)
                                             limited to the ‘‘place[ment],                           Commission’s interpretations here are                 are likewise not at odds with the Tenth
                                             construct[ion], or modif[ication]’’ of                  intended to facilitate the                            Amendment and constitutional
                                             facilities on government-owned                          implementation of the scheme Congress                 precedent, as some commenters
                                             property, for the purpose of providing                  intended and to provide greater                       contend. In particular, the
                                             ‘‘personal wireless service.’’ The                      regulatory certainty to states,                       Commission’s interpretations do not
                                             Commission observes that this result,                   municipalities, and regulated parties                 directly ‘‘compel the states to
                                             too, is consistent with Commission                      about what conduct is preempted under                 administer federal regulatory programs
                                             precedent, which involved a contract                    Section 253(a). Should factual questions              or pass legislation.’’ The outcome of
                                             that provided exclusive access to a                     arise about whether a state or locality is            violations of Section 253(a) or Section
                                             ROW. As but one example, to have                        engaged in such behavior, Section                     332(c)(7)(B) of the Act are no more than
                                             limited that holding to exclude                         253(d) affords state and local                        a consequence of ‘‘the limits Congress
                                             government-owned property within the                    governments and private parties an                    already imposed on State and local
                                             ROW even if the carrier needed access                   avenue for specific preemption                        governments’’ through its enactment of
                                             to that property would have the effect of               challenges.                                           Section 332(c)(7).
                                             diluting or completely defeating the                                                                             43. The Commission also reject the
                                                                                                     E. Responses to Challenges to the                     suggestion that the limits Section 253
                                             purpose of Section 332(c)(7).
                                                38. Second, and in the alternative,                  Commission’s Interpretive Authority                   places on state and local rights-of-way
                                             even if Section 253(a) and Section                      and Other Arguments                                   fees and management will
                                             332(c)(7) were to permit leeway for                        40. The Commission rejects claims                  unconstitutionally interfere with the
                                             states and localities acting in their                   that it lacks authority to issue                      relationship between a state and its
                                             proprietary role, the examples in the                   authoritative interpretations of Sections             political subdivisions. As relevant to its
                                             record would be excepted because they                   253 and 332(c)(7) in this Declaratory                 interpretations here, it is not clear, at
                                             involve states and localities fulfilling                Ruling. The Commission acts here                      first blush, that such concerns would be
                                             regulatory objectives. In the proprietary               pursuant to its broad authority to                    implicated. Because state and local legal
                                             context, ‘‘a State acts as a ‘market                    interpret key provisions of the                       requirements can be written and
                                             participant with no interest in setting                 Communications Act, consistent with                   structured in myriad ways, and
                                             policy.’ ’’ The Commission contrasts                    the Commission’s exercise of that                     challenges to such state or local
                                             state and local governments’ purely                     interpretive authority in the past. In this           activities could be framed in broad or
                                             proprietary actions with states and                     instance, the Commission finds that                   narrow terms, the Commission declines
                                             localities acting with respect to                       issuing a Declaratory Ruling is                       to resolve such questions here, divorced
                                             managing or controlling access to                       necessary to remove what the record                   from any specific context.
                                             property within public ROW, or to                       reveals is substantial uncertainty and to
                                                                                                     reduce the number and complexity of                   II. Third Report and Order
                                             decisions about where facilities that will
                                             provide personal wireless service to the                legal controversies regarding certain fee                44. In this Third Report and Order,
                                             public may be sited. As several                         and non-fee state and local legal                     the Commission addresses the
                                             commenters point out, courts have                       requirements in connection with Small                 application of shot clocks to state and
                                             recognized that states and localities                   Wireless Facility infrastructure. The                 local review of wireless infrastructure
                                             ‘‘hold the public streets and sidewalks                 Commission thus exercise its authority                deployments. The Commission does so
                                             in trust for the public’’ and ‘‘manage                  in this Declaratory Ruling to interpret               by taking action in three main areas.
                                             public ROW in their regulatory                          Section 253 and Section 332(c)(7) and                 First, the Commission adopts a new set
                                             capacities.’’ These decisions could be                  explain how those provisions apply in                 of shot clocks tailored to support the
                                             based on a number of regulatory                         the specific scenarios at issue here.                 deployment Small Wireless Facilities.
                                             objectives, such as aesthetics or public                   41. Nothing in Sections 253 or                     Second, the Commission adopts a
                                             safety and welfare, some of which, as                   332(c)(7) purports to limit the exercise              specific remedy that applies to
                                             the Commission notes elsewhere, would                   of the Commission’s general interpretive              violations of these new Small Wireless
                                             fall within the preemption scheme                       authority. Congress’s inclusion of                    Facility shot clocks, which the
                                             envisioned by Congress. In these                        preemption provisions in Section 253(d)               Commission expects will operate to
                                             situations, the State or locality’s role                and Section 332(c)(7)(B)(v) does not                  significantly reduce the need for
                                             seems to be indistinguishable from its                  limit the Commission’s ability pursuant               litigation over missed shot clocks.
                                             function and objectives as a regulator.                 to other sections of the Act to construe              Third, the Commission clarifies a
                                             To the extent that there is some                        and provide its authoritative                         number of issues that are relevant to all
                                             distinction, the temptation to blend the                interpretation as to the meaning of those             of the FCC’s shot clocks, including the
                                             two roles for purposes of insulating                    provisions. Any preemption under                      types of authorizations subject to these
                                             conduct from federal preemption cannot                  Section 253 and/or Section 332(c)(7)(B)               time periods.
                                             be underestimated in light of the                       that subsequently occurs will proceed in
                                                                                                     accordance with the enforcement                       A. New Shot Clocks for Small Wireless
                                             overarching statutory objective that
                                             telecommunications service and                          mechanisms available in each context.                 Facility Deployments
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                                             personal wireless services be deployed                  But whatever enforcement mechanisms                      45. In 2009, the Commission
                                             without material impediments.                           may be available to preempt specific                  concluded that it should use shot clocks
                                                39. The Commission believes that                     state and local requirements, nothing in              to define a presumptive ‘‘reasonable
                                             Section 253(c) is properly construed to                 Section 253 or Section 332(c)(7)                      period of time’’ beyond which state or
                                             suggest that Congress did not intend to                 prevents the Commission from declaring                local inaction on wireless infrastructure
                                             permit states and localities to rely on                 that a category of state or local laws is             siting applications would constitute a
                                             their ownership of property within a                    inconsistent with Section 253(a) or                   ‘‘failure to act’’ within the meaning of


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                                             51874            Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations

                                             Section 332. The Commission adopted a                      47. The Commission finds compelling                swap out of certain equipment in 60
                                             90-day clock for reviewing collocation                  reasons to establish a new                            days, and the Commission sees no
                                             applications and a 150-day clock for                    presumptively reasonable Section 332                  meaningful difference in processing
                                             reviewing siting applications other than                shot clock of 60 days for collocations of             these applications than processing
                                             collocations. The record here suggests                  Small Wireless Facilities on existing                 Section 332 collocation applications in
                                             that the two existing Section 332 shot                  structures. The record demonstrates the               60 days. There is no reason to apply
                                             clocks have increased the efficiency of                 need for, and reasonableness of,                      different time periods (60 vs. 90 days)
                                             deploying wireless infrastructure. Many                 expediting the siting review of these                 to what is essentially the same review:
                                             localities already process wireless siting              collocations. Notwithstanding the                     Modification of an existing structure to
                                             applications in less time than required                 implementation of the current shot                    accommodate new equipment. Finally,
                                             by those shot clocks and a number of                    clocks, more streamlined procedures are               adopting a 60-day shot clock will
                                             states have enacted laws requiring that                 both reasonable and necessary to                      encourage service providers to collocate
                                             collocation applications be processed in                provide greater predictability for siting             rather than opting to build new siting
                                             60 days or less. Some siting agencies                   applications nationwide for the                       structures which has numerous
                                             acknowledge that they have worked to                    deployment of Small Wireless Facilities.              advantages.
                                             gain efficiencies in processing siting                  The two current Section 332 shot clocks                  50. For similar reasons, the
                                             applications and welcome the addition                   do not reflect the evolution of the                   Commission also finds it reasonable to
                                             of new shot clocks tailored to the                      application review process and                        establish a new 90-day Section 332 shot
                                             deployment of small scale facilities.                   evidence that localities can complete                 clock for new construction of Small
                                             Given siting agencies’ increased                        reviews more quickly than was the case                Wireless Facilities. Ninety days is a
                                             experience with existing shot clocks, the               when the existing Section 332 shot                    presumptively reasonable period of time
                                             greater need for rapid siting of Small                  clocks were adopted nine years ago.                   for localities to review such siting
                                             Wireless Facilities nationwide, and the                 Since 2009, localities have gained                    applications. Small Wireless Facilities
                                             lower burden siting of these facilities                 significant experience processing                     have far less visual and other impact
                                             places on siting agencies in many cases,                wireless siting applications. Indeed,                 than the facilities the Commission
                                             the Commission takes this opportunity                   many localities already process wireless              considered in 2009 and should
                                             to update its approach to speed the                     siting applications in less than the                  accordingly require less time to review.
                                             deployment of Small Wireless Facilities.                required time and several jurisdictions               Indeed, some state and local
                                                                                                     require by law that collocation                       governments have already adopted 60-
                                             1. Two New Section 332 Shot Clocks for                  applications be processed in 60 days or               day maximum reasonable periods of
                                             Deployment of Small Wireless Facilities                 less. With the passage of time, siting                time for review of all small cell siting
                                                                                                     agencies have become more efficient in                applications, and, even in the absence of
                                                46. In this section, the Commission                                                                        such maximum requirements, several
                                                                                                     processing siting applications. These
                                             adopts two new Section 332 shot clocks                                                                        are already reviewing and approving
                                                                                                     facts demonstrate that a shorter, 60-day
                                             for Small Wireless Facilities—60 days                                                                         small-cell siting applications within 60
                                                                                                     shot clock for processing collocation
                                             for review of an application for                        applications for Small Wireless                       days or less after filing. Numerous
                                             collocation of Small Wireless Facilities                Facilities is reasonable.                             industry commenters advocated a 90-
                                             using a preexisting structure and 90                       48. As the Commission found in 2009,               day shot clock for all non-collocation
                                             days for review of an application for                   collocation applications are generally                deployments. Based on this record, the
                                             attachment of Small Wireless Facilities                 easier to process than new construction               Commission finds review of an
                                             using a new structure. These new                        because the community impact is likely                application to deploy a Small Wireless
                                             Section 332 shot clocks carefully                       to be smaller. In particular, the addition            Facility using a new structure warrants
                                             balance the well-established authority                  of an antenna to an existing tower or                 more review time than a mere
                                             that states and local authorities have                  other structure is unlikely to have a                 collocation, but less than the
                                             over review of wireless siting                          significant visual impact on the                      construction of a macro tower. For the
                                             applications with the requirements of                   community. The size of Small Wireless                 reasons explained below, the
                                             Section 332(c)(7)(ii) to exercise that                  Facilities poses little or no risk of                 Commission also specifies today a
                                             authority ‘‘within a reasonable period of               adverse effects on the environment or                 provision that will initially reset these
                                             time . . . taking into account the nature               historic preservation. Indeed, many                   two new shot clocks in the event that a
                                             and scope of the request.’’ Further, the                jurisdictions do not require public                   locality receives a materially incomplete
                                             Commission’s decision is consistent                     hearings for approval of such                         application.
                                             with the BDAC’s Model Code for                          attachments, underscoring their belief
                                             Municipalities’ recommended                                                                                   2. Batched Applications for Small
                                                                                                     that such attachments do not implicate
                                             timeframes, which utilize this same 60-                                                                       Wireless Facilities
                                                                                                     complex issues requiring a more
                                             day and 90-day framework for                            searching review.                                        51. Given the way in which Small
                                             collocation of Small Wireless Facilities                   49. Further, the Commission finds no               Wireless Facilities are likely to be
                                             and new structures and are similar to                   reason to believe that applying a 60-day              deployed, in large numbers as part of a
                                             shot clocks enacted in state level small                time frame for Small Wireless Facility                system meant to cover a particular area,
                                             cell bills and the real world experience                collocations under Section 332 creates                the Commission anticipates that some
                                             of many municipalities which further                    confusion with collocations that fall                 applicants will submit ‘‘batched’’
                                             supports the reasonableness of its                      within the scope of ‘‘eligible facilities             applications: Multiple separate
                                             approach. The Commission’s actions                      requests’’ under Section 6409 of the                  applications filed at the same time, each
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                                             will modernize the framework for                        Spectrum Act, which are also subject to               for one or more sites or a single
                                             wireless facility siting by taking into                 a 60-day review. The type of facilities at            application covering multiple sites. The
                                             consideration that states and localities                issue here are distinctly different and               Commission sought comment on
                                             should be able to address the siting of                 the definition of a Small Wireless                    whether batched applications should be
                                             Small Wireless Facilities in a more                     Facility is clear. Further, siting                    subject to either longer or shorter shot
                                             expedited review period than needed                     authorities are required to process                   clocks than would apply if each
                                             for larger facilities.                                  Section 6409 applications involving the               component of the batch were submitted


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                                                              Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations                                          51875

                                             separately. The Commission sees no                      the Commission also provides an                       the Commission expects, as noted
                                             reason why the shot clocks for batched                  additional remedy that it expects will                above, siting authorities to issue without
                                             applications to deploy Small Wireless                   substantially reduce the likelihood that              any further delay all necessary
                                             Facilities should be longer than those                  applicants will need to pursue                        authorizations when notified by the
                                             that apply to individual applications                   additional and costly relief in court at              applicant that they have missed the shot
                                             because, in many cases, the batching of                 the expiration of those time periods.                 clock deadline, absent extraordinary
                                             such applications has advantages in                        54. The Commission determines that                 circumstances. Where the siting
                                             terms of administrative efficiency that                 the failure of a state or local government            authority nevertheless fails to issue all
                                             could actually make review easier. The                  to issue a decision on a Small Wireless               necessary authorizations and litigation
                                             Commission’s decision flows from its                    Facility siting application within the                is commenced based on violations of
                                             current Section 332 shot clock policy.                  presumptively reasonable time periods                 Sections 332(c)(7)(B)(i)(II) and/or
                                             Under the two existing Section 332 shot                 above will constitute a ‘‘failure to act’’            332(c)(7)(B)(ii), the Commission expects
                                             clocks, if an applicant files multiple                  within the meaning of Section                         that applicants and other aggrieved
                                             siting applications on the same day for                 332(c)(7)(B)(v). Therefore, a provider is,            parties will likely pursue equitable
                                             the same type of facilities, each                       at a minimum, entitled to the same                    judicial remedies. Given the relatively
                                             application is subject to the same                      process and remedies available for a                  low burden on state and local
                                             number of review days by the siting                     failure to act within the new Small                   authorities of simply acting—one way or
                                             agency. These multiple siting                           Wireless Facility shot clocks as they                 the other—within the Small Wireless
                                             applications are equivalent to a batched                have been under the FCC’s 2009 shot                   Facility shot clocks, the Commission
                                             application and therefore the shot                      clocks. But the Commission also adds                  thinks that applicants would have a
                                             clocks for batching should follow the                   an additional remedy for the new Small                relatively low hurdle to clear in
                                             same rules as if the applications were                  Wireless Facility shot clocks.                        establishing a right to expedited judicial
                                             filed separately. Accordingly, when                        55. State or local inaction by the end             relief.
                                             applications to deploy Small Wireless                   of the Small Wireless Facility shot clock                58. The Commission expects that
                                             Facilities are filed in batches, the shot               will function not only as a Section                   courts will typically find expedited and
                                             clock that applies to the batch is the                  332(c)(7)(B)(v) failure to act but also               permanent injunctive relief warranted
                                             same one that would apply had the                       amount to a presumptive prohibition on                for violations of Sections
                                             applicant submitted individual                          the provision of personal wireless                    332(c)(7)(B)(i)(II) and 332(c)(7)(B)(ii) of
                                             applications. Should an applicant file a                services within the meaning of Section                the Act when addressing the
                                             single application for a batch that                     332(c)(7)(B)(i)(II). Accordingly, the                 circumstances discussed in this Order.
                                             includes both collocated and new                        Commission would expect the state or                  The Commission believes that this
                                             construction of Small Wireless                          local government to issue all necessary               approach is sensible because guarding
                                             Facilities, the longer 90-day shot clock                permits without further delay. In cases               against barriers to the deployment of
                                             will apply, to ensure that the siting                   where such action is not taken, the                   personal wireless facilities not only
                                             authority has adequate time to review                   Commission assumes, for the reasons                   advances the goal of Section 332(c)(7)(B)
                                             the new construction sites.                             discussed below, that the applicant                   but also policies set out elsewhere in the
                                                52. The Commission recognizes the                    would have a straightforward case for                 Communications Act and 1996 Act, as
                                             concerns raised by parties arguing for a                obtaining expedited relief in court.                  the Commission recently has recognized
                                             longer time period for at least some                       56. As discussed in the Declaratory                in the case of Small Wireless Facilities.
                                             batched applications but concludes that                 Ruling, a regulation under Section                    This is so whether or not these barriers
                                             a separate rule is not necessary to                     332(c)(7)(B)(i)(II) constitutes an effective          stem from bad faith. Nor does the
                                             address these concerns. Under the                       prohibition if it materially limits or                Commission anticipate that there would
                                             Commission’s approach, in                               inhibits the ability of any competitor or             be unresolved issues implicating the
                                             extraordinary cases, a siting authority,                potential competitor to compete in a fair             siting authority’s expertise and therefore
                                             as discussed below, can rebut the                       and balanced legal and regulatory                     requiring remand in most instances.
                                             presumption of reasonableness of the                    environment. Missing shot clock                          59. The guidance provided here
                                             applicable shot clock period where a                    deadlines would thus presumptively                    should reduce the need for, and
                                             batch application causes legitimate                     have the effect of unlawfully prohibiting             complexity of, case-by-case litigation
                                             overload on the siting authority’s                      service in that such failure to act can be            and reduce the likelihood of vastly
                                             resources. Thus, contrary to some                       expected to materially limit or inhibit               different timing across various
                                             localities’ arguments, the Commission’s                 the introduction of new services or the               jurisdictions for the same type of
                                             approach provides for a certain degree                  improvement of existing services. Thus,               deployment. This clarification, along
                                             of flexibility to account for exceptional               when a siting authority misses the                    with the other actions the Commission
                                             circumstances. In addition, consistent                  applicable shot clock deadline, the                   takes in this Third Report and Order,
                                             with, and for the same reasons as the                   applicant may commence suit in a court                should streamline the courts’ decision-
                                             Commission’s conclusion below that                      of competent jurisdiction alleging a                  making process and reduce the
                                             Section 332 does not permit states and                  violation of Section 332(c)(7)(B)(i)(II), in          possibility of inconsistent rulings.
                                             localities to prohibit applicants from                  addition to a violation of Section                    Consequently, the Commission believes
                                             requesting multiple types of approvals                  332(c)(7)(B)(ii), as discussed above. The             that its approach helps facilitate courts’
                                             simultaneously, the Commission finds                    siting authority then will have an                    ability to ‘‘hear and decide such
                                             that Section 332(c)(7)(B)(ii) similarly                 opportunity to rebut the presumption of               [lawsuits] on an expedited basis,’’ as the
                                             does not allow states and localities to                 effective prohibition by demonstrating                statute requires.
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                                             refuse to accept batches of applications                that the failure to act was reasonable                   60. The Commission’s updated
                                             to deploy Small Wireless Facilities.                    under the circumstances and, therefore,               interpretation of Section 332(c)(7) for
                                                                                                     did not materially limit or inhibit the               Small Wireless Facilities effectively
                                             B. New Remedy for Violations of the                     applicant from introducing new services               balances the interest of wireless service
                                             Small Wireless Facilities Shot Clocks                   or improving existing services.                       providers to have siting applications
                                               53. In adopting these new shot clocks                    57. Given the seriousness of failure to            granted in a timely and streamlined
                                             for Small Wireless Facility applications,               act within a reasonable period of time,               manner and the interest of localities to


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                                             51876            Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations

                                             protect public safety and welfare and                   ensuring that the entire approval                     there is no persuasive reason to accept
                                             preserve their authority over the                       process necessary for deployment is                   a narrower interpretation. This is
                                             permitting process. The Commission’s                    completed within a reasonable period of               particularly true given that the NPA
                                             specialized deployment categories, in                   time, as defined by the shot clocks                   definition of collocation stands in direct
                                             conjunction with the acknowledgement                    addressed in this Third Report and                    contrast with the definition of
                                             that in rare instances, it may                          Order.                                                collocation in the Spectrum Act,
                                             legitimately take longer to act, recognize                                                                    pursuant to which facilities only fall
                                                                                                     2. Codification of Section 332 Shot
                                             that the siting process is complex and                                                                        within the scope of an ‘‘eligible facilities
                                                                                                     Clocks
                                             handled in many different ways under                                                                          request’’ if they are attached to towers
                                             various states’ and localities’ long-                      63. In addition to establishing two                or base stations that have already been
                                             established codes. Further, the                         new Section 332 shot clocks for Small                 zoned for wireless use.
                                             Commission’s approach tempers                           Wireless Facilities, the Commission
                                                                                                     takes this opportunity to codify its two              4. When Shot Clocks Start and
                                             localities’ concerns about the                                                                                Incomplete Applications
                                             inflexibility of a deemed granted                       existing Section 332 shot clocks for
                                             proposal because the new remedy the                     siting applications that do not involve                  65. In 2014 the Commission clarified
                                             Commission adopts here accounts for                     Small Wireless Facilities. In 2009 the                that a shot clock begins to run when an
                                             the breadth of potentially unforeseen                   Commission found that 90 days is a                    application is first submitted, not when
                                             circumstances that individual localities                reasonable time frame for processing                  the application is deemed complete.
                                             may face and the possibility that                       collocation applications and 150 days is              The clock can be paused, however, if
                                             additional review time may be needed                    a reasonable time frame to process                    the locality notifies the applicant within
                                             in truly exceptional circumstances. The                 applications other than collocations.                 30 days that the application is
                                             Commission further finds that its                       Since these Section 332 shot clocks                   incomplete. The locality may pause the
                                             interpretive framework will not be                      were adopted as part of a declaratory                 clock again if it provides written notice
                                             unduly burdensome on localities                         ruling, they were not codified in the                 within 10 days that the supplemental
                                             because a number of states have already                 Commission’s rules. The Commission                    submission did not provide the
                                             adopted even more stringent deemed                      sought comment on whether to modify                   information identified in the original
                                             granted remedies                                        these shot clocks. The Commission                     notice delineating missing information.
                                                                                                     finds no need to modify them here and                 The Commission sought comment on
                                             C. Clarification of Issues Related to All               will continue to use these shot clocks                these determinations.
                                             Section 332 Shot Clocks                                 for processing Section 332 siting                        66. Based on the record, the
                                                                                                     applications that do not involve Small                Commission finds no cause to alter the
                                             1. Authorizations Subject to the
                                                                                                     Wireless Facilities. The Commission                   Commission’s prior determinations and
                                             ‘‘Reasonable Period of Time’’ Provision
                                                                                                     does, though, codify these two existing               now codifies them in its rules. Codified
                                             of Section 332(c)(7)(B)(ii)
                                                                                                     shot clocks in its rules alongside the two            rules, easily accessible to applicants and
                                                61. Section 332(c)(7)(B)(ii) requires                newly-adopted shot clocks so that all                 localities alike, should provide helpful
                                             state and local governments to act                      interested parties can readily find the               clarity. The complaints by states and
                                             ‘‘within a reasonable period of time’’ on               shot clock requirements in one place.                 localities about the sufficiency of some
                                             ‘‘any request for authorization to place,                                                                     of the applications they receive are
                                             construct, or modify personal wireless                  3. Collocations on Structures Not                     adequately addressed by the
                                             service facilities.’’ The Commission has                Previously Zoned for Wireless Use                     Commission’s current policy, which
                                             not addressed the specific types of                        64. The Commission takes this                      preserves the states’ and localities’
                                             authorizations subject to this                          opportunity to clarify that for purposes              ability to pause review when they find
                                             requirement. After carefully considering                of the Section 332 shot clocks,                       an application to be incomplete. The
                                             these arguments, the Commission finds                   attachment of facilities to existing                  Commission does not find it necessary
                                             that ‘‘any request for authorization to                 structures constitutes collocation,                   at this point to shorten the 30-day initial
                                             place, construct, or modify personal                    regardless of whether the structure or                review period for completeness because,
                                             wireless service facilities’’ under                     the location has previously been zoned                as was the case when this review period
                                             Section 332(c)(7)(B)(ii) means all                      for wireless facilities. As the                       was adopted in the 2009, it remains
                                             authorizations necessary for the                        Commission stated in 2009, ‘‘an                       consistent with review periods for
                                             deployment of personal wireless                         application is a request for collocation              completeness under existing state
                                             services infrastructure. This                           if it does not involve a ‘substantial                 wireless infrastructure deployment
                                             interpretation finds support in the                     increase in the size of a tower’ as                   statutes and still ‘‘gives State and local
                                             record and is consistent with the courts’               defined in the Nationwide                             governments sufficient time for
                                             interpretation of this provision and the                Programmatic Agreement (NPA) for the                  reviewing applications for
                                             text and purpose of the Act.                            Collocation of Wireless Antennas.’’ The               completeness, while protecting
                                                62. The Commission’s interpretation                  definition of ‘‘[c]ollocation’’ in the NPA            applicants from a last minute decision
                                             remains faithful to the purpose of                      provides for the ‘‘mounting or                        that an application should be denied as
                                             Section 332(c)(7) to balance Congress’s                 installation of an antenna on an existing             incomplete.’’
                                             competing desires to preserve the                       tower, building or structure for the                     67. However, for applications to
                                             traditional role of state and local                     purpose of transmitting and/or receiving              deploy Small Wireless Facilities, the
                                             governments in regulating land use and                  radio frequency signals for                           Commission implements a modified
                                             zoning, while encouraging the rapid                     communications purposes, whether or                   tolling system designed to help ensure
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                                             development of new                                      not there is an existing antenna on the               that providers are submitting complete
                                             telecommunications technologies.                        structure.’’ The NPA’s definition of                  applications on day one. This step
                                             Under the Commission’s interpretation,                  collocation explicitly encompasses                    accounts for the fact that the shot clocks
                                             states and localities retain their                      collocations on structures and buildings              applicable to such applications are
                                             authority over personal wireless                        that have not yet been zoned for                      shorter than those established in 2009
                                             facilities deployment. At the same time,                wireless use. To interpret the NPA any                and, because of which, there may
                                             deployment will be kept on track by                     other way would be unduly narrow and                  instances where the prevailing tolling


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                                                              Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations                                          51877

                                             rules would further shorten the shot                    Commission has made clear does not                    agencies has been a persistent problem.
                                             clocks to such an extent that it might be               stop the shot clocks from running.                    With this in mind, the Third Report and
                                             impossible for siting authorities to act                Therefore, the Commission concludes                   Order establishes and codifies specific
                                             on the application. For Small Wireless                  that if an applicant proffers an                      rules concerning the amount of time
                                             Facilities applications, the siting                     application, but a state or locality                  siting agencies may take to review and
                                             authority has 10 days from the                          refuses to accept it until a pre-                     approve certain categories of wireless
                                             submission of the application to                        application review has been completed,                infrastructure siting applications. More
                                             determine whether the application is                    the shot clock begins to run when the                 specifically, the Commission addresses
                                             incomplete. The shot clock then resets                  application is proffered.                             its Section 332 shot clock rules for
                                             once the applicant submits the                             70. That said, the Commission                      infrastructure applications which will
                                             supplemental information requested by                   encourages voluntary pre-application                  be presumed reasonable under the
                                             the siting authority. Thus, for example,                discussions, which may well be useful                 Communications Act. As an initial
                                             for an application to collocate Small                   to both parties. The record indicates that            matter, the Commission establishes two
                                             Wireless Facilities, once the applicant                 such meetings can clarify key aspects of              new shot clocks for Small Wireless
                                             submits the supplemental information                    the application review process,                       Facilities applications. For collocation
                                             in response to a siting authority’s timely              especially with respect to large                      of Small Wireless Facilities on
                                             request, the shot clock resets, effectively             submissions or applicants new to a                    preexisting structures, the Commission
                                             giving the siting authority an additional               particular locality’s processes and may               adopts a 60-day shot clock which
                                             60 days to act on the Small Wireless                    speed the pace of review. To the extent               applies to both individual and batched
                                             Facilities collocation application. For                 that an applicant voluntarily engages in              applications. For applications
                                             subsequent determinations of                            a pre-application review to smooth the                associated with Small Wireless
                                             incompleteness, the tolling rules that                  way for its filing, the shot clock will               Facilities new construction the
                                             apply to non-Small Wireless Facilities                  begin when an application is filed,                   Commission adopts a 90-day shot clock
                                             would apply—that is, the shot clock                     presumably after the pre-application                  for both individual and batched
                                             would toll if the siting authority                      review has concluded.                                 applications. The Commission also
                                             provides written notice within 10 days                     71. The Commission also reiterates                 codifies two existing Section 332 shot
                                             that the supplemental submission did                    that the remedies granted under Section               clocks for all other Non-Small Wireless
                                             not provide the information identified                  332(c)(7)(B)(v) are independent of, and               Facilities that were established in 2009
                                             in the original notice delineating                      in addition to, any remedies that may be              without codification. These existing
                                             missing information.                                    available under state or local law. Thus,             shot clocks require 90-days for
                                                68. As noted above, multiple                         where a state or locality has established             processing of all other Non-Small
                                             authorizations may be required before a                 its own shot clocks, an applicant may                 Wireless Facilities collocation
                                             deployment is allowed to move forward.                  pursue any remedies granted under state               applications, and 150-days for
                                             For instance, a locality may require a                  or local law in cases where the siting                processing of all other Non-Small
                                             zoning permit, a building permit, an                    authority fails to act within those shot              Wireless Facilities applications other
                                             electrical permit, a road closure permit,               clocks. However, the applicant must                   than collocations.
                                             and an architectural or engineering                     wait until the Commission shot clock                     74. The Third Report and Order
                                             permit for an applicant to place,                       period has expired to bring suit for a                addresses other issues related to both
                                             construct, or modify its proposed                       ‘‘failure to act’’ under Section                      the existing and new shot clocks. In
                                             personal wireless service facilities. All               332(c)(7)(B)(v).                                      particular the Commission addresses the
                                             of these permits are subject to Section                                                                       specific types of authorizations subject
                                             332’s requirement to act within a                       III. Procedural Matters                               to the ‘‘Reasonable Period of Time’’
                                             reasonable period of time, and thus all                 A. Final Regulatory Flexibility Analysis              provisions of Section 332(c)(7)(B)(ii),
                                             are subject to the shot clocks the                                                                            finding that ‘‘any request for
                                             Commission adopts or codifies here.                        72. As required by the Regulatory                  authorization to place, construct, or
                                                69. The Commission also finds that                   Flexibility Act of 1980, as amended                   modify personal wireless service
                                             mandatory pre-application procedures                    (RFA), an Initial Regulatory Flexibility              facilities’’ under Section 332(c)(7)(B)(ii)
                                             and requirements do not toll the shot                   Analysis (IRFA) was incorporated in the               means all authorizations a locality may
                                             clocks. The Commission concludes that                   Notice of Proposed Rulemaking                         require, and to all aspects of and steps
                                             the ability to toll a shot clock when an                (NPRM), released in April 2017 (82 FR                 in the siting process, including license
                                             application is found incomplete or by                   22453, May 16, 2017). The Commission                  or franchise agreements to access ROW,
                                             mutual agreement by the applicant and                   sought written public comment on the                  building permits, public notices and
                                             the siting authority should be adequate                 proposals in the NPRM, including                      meetings, lease negotiations, electric
                                             to address these concerns. Much like a                  comment on the IRFA. The comments                     permits, road closure permits, aesthetic
                                             requirement to file applications one                    received are addressed below in Section               approvals, and other authorizations
                                             after another, requiring pre-application                2. This present Final Regulatory                      needed for deployment of personal
                                             review would allow for a complete                       Flexibility Analysis (FRFA) conforms to               wireless services infrastructure. The
                                             circumvention of the shot clocks by                     the RFA.                                              Commission also addresses collocation
                                             significantly delaying their start date.                                                                      on structures not previously zoned for
                                                                                                     1. Need for and Objectives of the Rules
                                             An application is not ruled on within ‘‘a                                                                     wireless use, when the four Section 332
                                             reasonable period of time after the                        73. In the Third Report and Order, the             shot clocks begin to run, the impact of
                                             request is duly filed’’ if the state or                 Commission continues its efforts to                   incomplete applications on the
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                                             locality takes the full ordinary review                 promote the timely buildout of wireless               Commission’s Section 332 shot clocks,
                                             period after having delayed the filing in               infrastructure across the country by                  and how state imposed shot clocks
                                             the first instance due to required pre-                 eliminating regulatory impediments that               remedies effect the Commission’s
                                             application review. Indeed, requiring a                 unnecessarily delay bringing personal                 Section 332 shot clocks remedies.
                                             pre-application review before an                        wireless services to consumers. The                      75. The Commission discusses the
                                             application may be filed is similar to                  record shows that lengthy delays in                   appropriate judicial remedy that
                                             imposing a moratorium, which the                        approving siting applications by siting               applicants may pursue in cases where a


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                                             51878            Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations

                                             siting authority fails to act within the                   78. These arguments, however, fail to              applicant may seek injunctive relief as
                                             applicable shot clock period. In those                  acknowledge that Section 332 shot                     long as several minimum requirements
                                             situations, applicants may commence an                  clocks have been in place for years and               are met. The siting authority, however,
                                             action in a court of competent                          reflect Congressional intent as seen in               can rebut the presumptive
                                             jurisdiction alleging a violation of                    the statutory language of Section 332.                reasonableness of the applicable shot
                                             Section 332(c)(7)(B)(i)(II) and seek                    The record in this proceeding                         clock under certain circumstances. The
                                             injunctive relief granting the                          demonstrates the need for, and                        circumstances under which a sitting
                                             application. Notwithstanding the                        reasonableness of, expediting the siting              authority might have to do this will be
                                             availability of a judicial remedy if a shot             review of certain facility deployments.               rare. Under this carefully crafted
                                             clock deadline is missed, the                           More streamlined procedures are both                  approach, the interests of siting
                                             Commission recognizes that the Section                  reasonable and necessary to provide                   applicants, siting authorities, and
                                             332 time frames might not be met in                     greater predictability. The current shot              citizens are protected.
                                             exceptional circumstances and has                       clocks do not reflect the evolution of the
                                             refined its interpretation of the                       application review process and                        3. Response to Comments by the Chief
                                             circumstances when a period of time                     evidence that localities can complete                 Counsel for Advocacy of the Small
                                             longer than the relevant shot clock                     reviews more quickly than was the case                Business Administration
                                             would nonetheless be a reasonable                       when the original shot clocks were                      81. Pursuant to the Small Business
                                             period of time for action by a siting                   adopted nine years ago. Localities have               Jobs Act of 2010, which amended the
                                             agency. In addition, a siting authority                 gained significant experience processing              RFA, the Commission is required to
                                             that is subject to a court action for                   wireless siting applications and several              respond to any comments filed by the
                                             missing an applicable shot clock                        jurisdictions already have in place laws              Chief Counsel for Advocacy of the Small
                                             deadline has the opportunity to                         that require applications to be processed             Business Administration (SBA), and to
                                             demonstrate that the failure to act was                 in less time than the Commission’s new                provide a detailed statement of any
                                             reasonable under the circumstances                      shot clocks. With the passage of time,                change made to the proposed rules as a
                                             and, therefore, did not materially limit                sitting agencies have become more                     result of those comments.
                                             or inhibit the applicant from                           efficient in processing siting                          82. The Chief Counsel did not file any
                                             introducing new services or improving                   applications and this, in turn, should                comments in response to the proposed
                                             existing services thereby rebutting the                 reduce any economic burden the                        rules in this proceeding.
                                             effective prohibition presumption.                      Commission’s new shot clock
                                                76. The rules adopted in the Third                   provisions have on them.                              4. Description and Estimate of the
                                             Report and Order will accelerate the                       79. The Commission has carefully                   Number of Small Entities to Which the
                                             deployment of wireless infrastructure                   considered the impact of its new shot                 Rules Will Apply
                                             needed for the mobile wireless services                 clocks on siting authorities and has
                                                                                                                                                              83. The RFA directs agencies to
                                             of the future, while preserving the                     established shot clocks that take into
                                                                                                                                                           provide a description of, and where
                                             fundamental role of localities in this                  consideration the nature and scope of
                                                                                                                                                           feasible, an estimate of the number of
                                             process. Under the Commission’s new                     siting requests by establishing shot
                                                                                                                                                           small entities that may be affected by
                                             rules, localities will maintain control                 clocks of different lengths of time that
                                                                                                                                                           the rules adopted herein. The RFA
                                             over the placement, construction and                    depend on the nature of the siting
                                                                                                                                                           generally defines the term ‘‘small
                                             modification of personal wireless                       request at issue. The length of these shot
                                             facilities, while at the same time the                  clocks is based in part on the need to                entity’’ as having the same meaning as
                                             Commission’s new process will                           ensure that local governments have                    the terms ‘‘small business,’’ ‘‘small
                                             streamline the review of wireless siting                ample time to take any steps needed to                organization,’’ and ‘‘small governmental
                                             applications.                                           protect public safety and welfare and to              jurisdiction.’’ In addition, the term
                                                                                                     process other pending utility                         ‘‘small business’’ has the same meaning
                                             2. Summary of Significant Issues Raised                                                                       as the term ‘‘small business concern’’
                                                                                                     applications. Since local siting
                                             by Public Comments in Response to the                                                                         under the Small Business Act. A ‘‘small
                                                                                                     authorities have gained experience in
                                             IRFA                                                                                                          business concern’’ is one which: (1) Is
                                                                                                     processing siting requests in an
                                                77. Only one party—the Smart Cities                  expedited fashion, they should be able                independently owned and operated; (2)
                                             and Special Districts Coalition—filed                   to comply with the Commission’s new                   is not dominant in its field of operation;
                                             comments specifically addressing the                    shot clocks.                                          and (3) satisfies any additional criteria
                                             rules and policies proposed in the IRFA.                   80. The Commission has taken into                  established by the SBA.
                                             They argue that any shortening or                       consideration the concerns of the Smart                  84. Small Businesses, Small
                                             alteration of the Commission’s existing                 Cities and Special Districts Coalition                Organizations, Small Governmental
                                             shot clocks or the adoption of a deemed                 and NATOA. It has established shot                    Jurisdictions. The Commission’s actions,
                                             granted remedy will adversely affect                    clocks that will not favor wireless                   over time, may affect small entities that
                                             small local governments, special                        providers over other applicants with                  are not easily categorized at present.
                                             districts, property owners, small                       pending siting applications. Further,                 The Commission therefore describe
                                             developers, and others by placing their                 instead of adopting a deemed granted                  here, at the outset, three broad groups of
                                             siting applications behind wireless                     remedy that would grant a siting                      small entities that could be directly
                                             provider siting applications.                           application when a shot clock lapses                  affected herein. First, while there are
                                             Subsequently, NATOA filed comments                      without a decision on the merits, the                 industry specific size standards for
                                             concerning the draft FRFA. NATOA                        Commission provides guidance as to the                small businesses that are used in the
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                                             argues that the new shot clocks impose                  appropriate judicial remedy that                      regulatory flexibility analysis, according
                                             burdens on local governments and                        applicants may pursue and examples of                 to data from the SBA’s Office of
                                             particularly those with limited                         exceptional circumstance where a siting               Advocacy, in general a small business is
                                             resources. NATOA asserts that the new                   authority may be justified in needing                 an independent business having fewer
                                             shot clocks will spur more deployment                   additional time to review a siting                    than 500 employees. These types of
                                             applications than localities currently                  application then the applicable shot                  small businesses represent 99.9 percent
                                             process.                                                clock allows. Under this approach, the                of all businesses in the United States


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                                                              Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations                                          51879

                                             which translates to 28.8 million                           88. The Commission’s own data—                     utilized in many of these services, the
                                             businesses.                                             available in its Universal Licensing                  Commission lacks direct information
                                                85. Next, the type of small entity                   System—indicate that, as of May 17,                   upon which to base an estimation of the
                                             described as a ‘‘small organization’’ is                2018, there are 264 Cellular licensees                number of small entities that may be
                                             generally ‘‘any not-for-profit enterprise               that will be affected by the                          affected by the Commission’s actions in
                                             which is independently owned and                        Commission’s actions. The Commission                  this proceeding.
                                             operated and is not dominant in its                     does not know how many of these                          90. Public Safety Radio Licensees.
                                             field.’’ Nationwide, as of August 2016,                 licensees are small, as the Commission                Public Safety Radio Pool licensees as a
                                             there were approximately 356,494 small                  does not collect that information for                 general matter, include police, fire, local
                                             organizations based on registration and                 these types of entities. Similarly,                   government, forestry conservation,
                                             tax data filed by nonprofits with the                   according to Commission data, 413                     highway maintenance, and emergency
                                             Internal Revenue Service (IRS).                         carriers reported that they were engaged              medical services. Because of the vast
                                                86. Finally, the small entity described              in the provision of wireless telephony,               array of public safety licensees, the
                                             as a ‘‘small governmental jurisdiction’’                including cellular service, Personal                  Commission has not developed a small
                                             is defined generally as ‘‘governments of                Communications Service (PCS), and                     business size standard specifically
                                             cities, counties, towns, townships,                     Specialized Mobile Radio (SMR)                        applicable to public safety licensees.
                                             villages, school districts, or special                  Telephony services. Of this total, an                 The closest applicable SBA category is
                                             districts, with a population of less than               estimated 261 have 1,500 or fewer                     Wireless Telecommunications Carriers
                                             fifty thousand.’’ U.S. Census Bureau                    employees and 152 have more than                      (except Satellite) which encompasses
                                             data from the 2012 Census of                            1,500 employees. Thus, using available                business entities engaged in
                                             Governments indicate that there were                    data, the Commission estimates that the               radiotelephone communications. The
                                             90,056 local governmental jurisdictions                 majority of wireless firms can be                     appropriate size standard for this
                                             consisting of general purpose                           considered small.                                     category under SBA rules is that such a
                                                                                                                                                           business is small if it has 1,500 or fewer
                                             governments and special purpose                            89. Personal Radio Services. Personal
                                                                                                                                                           employees. For this industry, U.S.
                                             governments in the United States. Of                    radio services provide short-range, low-
                                                                                                                                                           Census data for 2012 show that there
                                             this number there were 37,132 General                   power radio for personal
                                                                                                                                                           were 967 firms that operated for the
                                             purpose governments (county,                            communications, radio signaling, and
                                                                                                                                                           entire year. Of this total, 955 firms had
                                             municipal and town or township) with                    business communications not provided                  employment of 999 or fewer employees
                                             populations of less than 50,000 and                     for in other services. Personal radio                 and 12 had employment of 1,000
                                             12,184 Special purpose governments                      services include services operating in                employees or more. Thus under this
                                             (independent school districts and                       spectrum licensed under part 95 of the                category and the associated size
                                             special districts) with populations of                  Commission’s rules. These services                    standard, the Commission estimates that
                                             less than 50,000. The 2012 U.S. Census                  include Citizen Band Radio Service,                   the majority of firms can be considered
                                             Bureau data for most types of                           General Mobile Radio Service, Radio                   small. With respect to local
                                             governments in the local government                     Control Radio Service, Family Radio                   governments, in particular, since many
                                             category show that the majority of these                Service, Wireless Medical Telemetry                   governmental entities comprise the
                                             governments have populations of less                    Service, Medical Implant                              licensees for these services, the
                                             than 50,000. Based on this data the                     Communications Service, Low Power                     Commission includes under public
                                             Commission estimates that at least                      Radio Service, and Multi-Use Radio                    safety services the number of
                                             49,316 local government jurisdictions                   Service. There are a variety of methods               government entities affected. According
                                             fall in the category of ‘‘small                         used to license the spectrum in these                 to Commission records, there are a total
                                             governmental jurisdictions.’’                           rule parts, from licensing by rule, to                of approximately 133,870 licenses
                                                87. Wireless Telecommunications                      conditioning operation on successful                  within these services. There are 3,121
                                             Carriers (except Satellite). This industry              completion of a required test, to site-               licenses in the 4.9 GHz band, based on
                                             comprises establishments engaged in                     based licensing, to geographic area                   an FCC Universal Licensing System
                                             operating and maintaining switching                     licensing. All such entities in this                  search of March 29, 2017. The
                                             and transmission facilities to provide                  category are wireless, therefore the                  Commission estimates that fewer than
                                             communications via the airwaves.                        Commission applies the definition of                  2,442 public safety radio licensees hold
                                             Establishments in this industry have                    Wireless Telecommunications Carriers                  these licenses because certain entities
                                             spectrum licenses and provide services                  (except Satellite), pursuant to which the             may have multiple licenses.
                                             using that spectrum, such as cellular                   SBA’s small entity size standard is                      91. Private Land Mobile Radio
                                             services, paging services, wireless                     defined as those entities employing                   Licensees. Private land mobile radio
                                             internet access, and wireless video                     1,500 or fewer persons. For this                      (PLMR) systems serve an essential role
                                             services. The appropriate size standard                 industry, U.S. Census data for 2012                   in a vast range of industrial, business,
                                             under SBA rules is that such a business                 show that there were 967 firms that                   land transportation, and public safety
                                             is small if it has 1,500 or fewer                       operated for the entire year. Of this                 activities. These radios are used by
                                             employees. For this industry, U.S.                      total, 955 firms had employment of 999                companies of all sizes operating in all
                                             Census data for 2012 show that there                    or fewer employees and 12 had                         U.S. business categories. Because of the
                                             were 967 firms that operated for the                    employment of 1,000 employees or                      vast array of PLMR users, the
                                             entire year. Of this total, 955 firms had               more. Thus, under this category and the               Commission has not developed a small
                                             employment of 999 or fewer employees                    associated size standard, the                         business size standard specifically
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                                             and 12 had employment of 1,000                          Commission estimates that the majority                applicable to PLMR users. The closest
                                             employees or more. Thus under this                      of firms can be considered small. The                 applicable SBA category is Wireless
                                             category and the associated size                        Commission notes however that many                    Telecommunications Carriers (except
                                             standard, the Commission estimates that                 of the licensees in this category are                 Satellite) which encompasses business
                                             the majority of wireless                                individuals and not small entities. In                entities engaged in radiotelephone
                                             telecommunications carriers (except                     addition, due to the mostly unlicensed                communications. The appropriate size
                                             satellite) are small entities.                          and shared nature of the spectrum                     standard for this category under SBA


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                                             51880            Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations

                                             rules is that such a business is small if               authorizations were for private radio                 average gross revenues of no more than
                                             it has 1,500 or fewer employees. For this               service. In 2001, an auction for 5,104                $40 million in the previous three
                                             industry, U.S. Census data for 2012                     MAS licenses in 176 EAs was                           calendar years. The BRS auctions
                                             show that there were 967 firms that                     conducted. Seven winning bidders                      resulted in 67 successful bidders
                                             operated for the entire year. Of this                   claimed status as small or very small                 obtaining licensing opportunities for
                                             total, 955 firms had employment of 999                  businesses and won 611 licenses. In                   493 Basic Trading Areas (BTAs). Of the
                                             or fewer employees and 12 had                           2005, the Commission completed an                     67 auction winners, 61 met the
                                             employment of 1,000 employees or                        auction (Auction 59) of 4,226 MAS                     definition of a small business. BRS also
                                             more. Thus, under this category and the                 licenses in the Fixed Microwave                       includes licensees of stations authorized
                                             associated size standard, the                           Services from the 928/959 and 932/941                 prior to the auction. At this time, the
                                             Commission estimates that the majority                  MHz bands. Twenty-six winning                         Commission estimates that of the 61
                                             of PLMR Licensees are small entities.                   bidders won a total of 2,323 licenses. Of             small business BRS auction winners, 48
                                                92. According to the Commission’s                    the 26 winning bidders in this auction,               remain small business licensees. In
                                             records, a total of approximately                       five claimed small business status and                addition to the 48 small businesses that
                                             400,622 licenses comprise PLMR users.                   won 1,891 licenses.                                   hold BTA authorizations, there are
                                             Of this number there are a total of 3,374                  95. With respect to the second                     approximately there are approximately
                                             licenses in the frequencies range                       category, Internal Private Spectrum use               86 incumbent BRS licensees that are
                                             173.225 MHz to 173.375 MHz, which is                    consists of entities that use, or seek to             considered small entities (18 incumbent
                                             the range affected by the Third Report                  use, MAS spectrum to accommodate                      BRS licensees do not meet the small
                                             and Order. The Commission does not                      their own internal communications                     business size standard). After adding the
                                             require PLMR licensees to disclose                      needs, MAS serves an essential role in                number of small business auction
                                             information about number of employees                   a range of industrial, safety, business,              licensees to the number of incumbent
                                             and does not have information that                      and land transportation activities. MAS               licensees not already counted, the
                                             could be used to determine how many                     radios are used by companies of all                   Commission finds that there are
                                             PLMR licensees constitute small entities                sizes, operating in virtually all U.S.                currently approximately 133 BRS
                                             under this definition. The Commission                   business categories, and by all types of              licensees that are defined as small
                                             however believes that a substantial                     public safety entities. For the majority of           businesses under either the SBA or the
                                             number of PLMR licensees may be small                   private internal users, the definition                Commission’s rules.
                                             entities despite the lack of specific                   developed by the SBA would be more                       98. In 2009, the Commission
                                             information.                                            appropriate than the Commission’s                     conducted Auction 86, the sale of 78
                                                93. Multiple Address Systems. Entities               definition. The closest applicable                    licenses in the BRS areas. The
                                             using Multiple Address Systems (MAS)                    definition of a small entity is the                   Commission offered three levels of
                                             spectrum, in general, fall into two                     ‘‘Wireless Telecommunications Carriers                bidding credits: (i) A bidder with
                                             categories: (1) Those using the spectrum                (except Satellite)’’ definition under the             attributed average annual gross revenues
                                             for profit-based uses, and (2) those using              SBA rules. The appropriate size                       that exceed $15 million and do not
                                             the spectrum for private internal uses.                 standard under SBA rules is that such                 exceed $40 million for the preceding
                                             With respect to the first category, Profit-             a business is small if it has 1,500 or                three years (small business) received a
                                             based Spectrum use, the size standards                  fewer employees. For this category, U.S.              15 percent discount on its winning bid;
                                             established by the Commission define                    Census data for 2012 show that there                  (ii) a bidder with attributed average
                                             ‘‘small entity’’ for MAS licensees as an                were 967 firms that operated for the                  annual gross revenues that exceed $3
                                             entity that has average annual gross                    entire year. Of this total, 955 firms had             million and do not exceed $15 million
                                             revenues of less than $15 million over                  employment of 999 or fewer employees                  for the preceding three years (very small
                                             the three previous calendar years. A                    and 12 had employment of 1,000                        business) received a 25 percent discount
                                             ‘‘Very small business’’ is defined as an                employees or more. Thus, under this                   on its winning bid; and (iii) a bidder
                                             entity that, together with its affiliates,              category and the associated small                     with attributed average annual gross
                                             has average annual gross revenues of not                business size standard, the Commission                revenues that do not exceed $3 million
                                             more than $3 million over the preceding                 estimates that the majority of firms that             for the preceding three years
                                             three calendar years. The SBA has                       may be affected by the Commission’s                   (entrepreneur) received a 35 percent
                                             approved these definitions. The                         action can be considered small.                       discount on its winning bid. Auction 86
                                             majority of MAS operators are licensed                     96. Broadband Radio Service and                    concluded in 2009 with the sale of 61
                                             in bands where the Commission has                       Educational Broadband Service.                        licenses. Of the ten winning bidders,
                                             implemented a geographic area                           Broadband Radio Service systems,                      two bidders that claimed small business
                                             licensing approach that requires the use                previously referred to as Multipoint                  status won 4 licenses; one bidder that
                                             of competitive bidding procedures to                    Distribution Service (MDS) and                        claimed very small business status won
                                             resolve mutually exclusive applications.                Multichannel Multipoint Distribution                  three licenses; and two bidders that
                                                94. The Commission’s licensing                       Service (MMDS) systems, and ‘‘wireless                claimed entrepreneur status won six
                                             database indicates that, as of April 16,                cable,’’ transmit video programming to                licenses.
                                             2010, there were a total of 11,653 site-                subscribers and provide two-way high-                    99. EBS—The Educational Broadband
                                             based MAS station authorizations. Of                    speed data operations using the                       Service has been included within the
                                             these, 58 authorizations were associated                microwave frequencies of the                          broad economic census category and
                                             with common carrier service. In                         Broadband Radio Service (BRS) and                     SBA size standard for Wired
                                             addition, the Commission’s licensing                    Educational Broadband Service (EBS)                   Telecommunications Carriers since
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                                             database indicates that, as of April 16,                (previously referred to as the                        2007. Wired Telecommunications
                                             2010, there were a total of 3,330                       Instructional Television Fixed Service                Carriers are comprised of establishments
                                             Economic Area market area MAS                           (ITFS)).                                              primarily engaged in operating and/or
                                             authorizations. The Commission’s                           97. BRS—In connection with the 1996                providing access to transmission
                                             licensing database also indicates that, as              BRS auction, the Commission                           facilities and infrastructure that they
                                             of April 16, 2010, of the 11,653 total                  established a small business size                     own and/or lease for the transmission of
                                             MAS station authorizations, 10,773                      standard as an entity that had annual                 voice, data, text, sound, and video using


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                                                              Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations                                           51881

                                             wired telecommunications networks.                      had annual receipts of $50,000,000 or                    104. Radio Stations. This Economic
                                             Transmission facilities may be based on                 more. Based on this data the                          Census category ‘‘comprises
                                             a single technology or a combination of                 Commission therefore estimates that the               establishments primarily engaged in
                                             technologies. The SBA’s small business                  majority of commercial television                     broadcasting aural programs by radio to
                                             size standard for this category is all such             broadcasters are small entities under the             the public. Programming may originate
                                             firms having 1,500 or fewer employees.                  applicable SBA size standard.                         in their own studio, from an affiliated
                                             U.S. Census Bureau data for 2012 show                      102. The Commission has estimated                  network, or from external sources.’’ The
                                             that there were 3,117 firms that operated               the number of licensed commercial                     SBA has established a small business
                                             that year. Of this total, 3,083 operated                television stations to be 1,377. Of this              size standard for this category as firms
                                             with fewer than 1,000 employees. Thus,                  total, 1,258 stations (or about 91                    having $38.5 million or less in annual
                                             under this size standard, the majority of               percent) had revenues of $38.5 million                receipts. Economic Census data for 2012
                                             firms in this industry can be considered                or less, according to Commission staff                show that 2,849 radio station firms
                                             small. In addition to Census Bureau                     review of the BIA Kelsey Inc. Media                   operated during that year. Of that
                                             data, the Commission’s Universal                        Access Pro Television Database (BIA) on               number, 2,806 operated with annual
                                             Licensing System indicates that as of                   November 16, 2017, and therefore these                receipts of less than $25 million per
                                             October 2014, there are 2,206 active EBS                licensees qualify as small entities under             year, 17 with annual receipts between
                                             licenses. The Commission estimates that                 the SBA definition. In addition, the                  $25 million and $49,999,999 million
                                             of these 2,206 licenses, the majority are               Commission has estimated the number                   and 26 with annual receipts of $50
                                             held by non-profit educational                          of licensed noncommercial educational                 million or more. Therefore, based on the
                                             institutions and school districts, which                (NCE) television stations to be 384.                  SBA’s size standard the majority of such
                                             are by statute defined as small                         Notwithstanding, the Commission does                  entities are small entities.
                                             businesses.                                             not compile and otherwise does not                       105. According to Commission staff
                                                100. Location and Monitoring Service                 have access to information on the                     review of the BIA/Kelsey, LLC’s
                                             (LMS). LMS systems use non-voice radio                  revenue of NCE stations that would                    Publications, Inc. Media Access Pro
                                             techniques to determine the location                    permit it to determine how many such                  Radio Database (BIA) as of January 2018,
                                             and status of mobile radio units. For                   stations would qualify as small entities.             about 11,261 (or about 99.92 percent) of
                                             purposes of auctioning LMS licenses,                    There are also 2,300 low power                        11,270 commercial radio stations had
                                             the Commission has defined a ‘‘small                    television stations, including Class A                revenues of $38.5 million or less and
                                             business’’ as an entity that, together                                                                        thus qualify as small entities under the
                                                                                                     stations (LPTV) and 3,681 TV translator
                                             with controlling interests and affiliates,                                                                    SBA definition. The Commission has
                                                                                                     stations. Given the nature of these
                                             has average annual gross revenues for                                                                         estimated the number of licensed
                                                                                                     services, the Commission will presume
                                             the preceding three years not to exceed                                                                       commercial AM radio stations to be
                                                                                                     that all of these entities qualify as small
                                             $15 million. A ‘‘very small business’’ is                                                                     4,633 stations and the number of
                                                                                                     entities under the above SBA small
                                             defined as an entity that, together with                                                                      commercial FM radio stations to be
                                                                                                     business size standard.
                                             controlling interests and affiliates, has                                                                     6,738, for a total number of 11,371. The
                                             average annual gross revenues for the                      103. The Commission notes, however,                Commission notes, that the Commission
                                             preceding three years not to exceed $3                  that in assessing whether a business                  has also estimated the number of
                                             million. These definitions have been                    concern qualifies as ‘‘small’’ under the              licensed NCE radio stations to be 4,128.
                                             approved by the SBA. An auction for                     above definition, business (control)                  Nevertheless, the Commission does not
                                             LMS licenses commenced on February                      affiliations must be included. The                    compile and otherwise does not have
                                             23, 1999 and closed on March 5, 1999.                   Commission estimates, therefore likely                access to information on the revenue of
                                             Of the 528 licenses auctioned, 289                      overstates the number of small entities               NCE stations that would permit it to
                                             licenses were sold to four small                        that might be affected by its action,                 determine how many such stations
                                             businesses.                                             because the revenue figure on which it                would qualify as small entities.
                                                101. Television Broadcasting. This                   is based does not include or aggregate                   106. The Commission also notes, that
                                             Economic Census category ‘‘comprises                    revenues from affiliated companies. In                in assessing whether a business entity
                                             establishments primarily engaged in                     addition, another element of the                      qualifies as small under the above
                                             broadcasting images together with                       definition of ‘‘small business’’ requires             definition, business control affiliations
                                             sound.’’ These establishments operate                   that an entity not be dominant in its                 must be included. The Commission’s
                                             television broadcast studios and                        field of operation. The Commission is                 estimate therefore likely overstates the
                                             facilities for the programming and                      unable at this time to define or quantify             number of small entities that might be
                                             transmission of programs to the public.                 the criteria that would establish whether             affected by its action, because the
                                             These establishments also produce or                    a specific television broadcast station is            revenue figure on which it is based does
                                             transmit visual programming to                          dominant in its field of operation.                   not include or aggregate revenues from
                                             affiliated broadcast television stations,               Accordingly, the estimate of small                    affiliated companies. In addition, to be
                                             which in turn broadcast the programs to                 businesses to which rules may apply                   determined a ‘‘small business,’’ an
                                             the public on a predetermined schedule.                 does not exclude any television station               entity may not be dominant in its field
                                             Programming may originate in their own                  from the definition of a small business               of operation. The Commission further
                                             studio, from an affiliated network, or                  on this basis and is therefore possibly               notes, that it is difficult at times to
                                             from external sources. The SBA has                      over-inclusive. Also, as noted above, an              assess these criteria in the context of
                                             created the following small business                    additional element of the definition of               media entities, and the estimate of small
                                             size standard for such businesses: Those                ‘‘small business’’ is that the entity must            businesses to which these rules may
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                                             having $38.5 million or less in annual                  be independently owned and operated.                  apply does not exclude any radio station
                                             receipts. The 2012 Economic Census                      The Commission notes that it is difficult             from the definition of a small business
                                             reports that 751 firms in this category                 at times to assess these criteria in the              on these basis, thus the Commission’s
                                             operated in that year. Of that number,                  context of media entities and its                     estimate of small businesses may
                                             656 had annual receipts of $25,000,000                  estimates of small businesses to which                therefore be over-inclusive. Also, as
                                             or less, 25 had annual receipts between                 they apply may be over-inclusive to this              noted above, an additional element of
                                             $25,000,000 and $49,999,999 and 70                      extent.                                               the definition of ‘‘small business’’ is that


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                                             51882            Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations

                                             the entity must be independently owned                     109. Satellite Telecommunications.                 Service where licensees can choose
                                             and operated. The Commission notes                      This category comprises firms                         between common carrier and non-
                                             that it is difficult at times to assess these           ‘‘primarily engaged in providing                      common carrier status. At present, there
                                             criteria in the context of media entities               telecommunications services to other                  are approximately 66,680 common
                                             and the estimates of small businesses to                establishments in the                                 carrier fixed licensees, 69,360 private
                                             which they apply may be over-inclusive                  telecommunications and broadcasting                   and public safety operational-fixed
                                             to this extent.                                         industries by forwarding and receiving                licensees, 20,150 broadcast auxiliary
                                                107. FM Translator Stations and Low                  communications signals via a system of                radio licensees, 411 LMDS licenses, 33
                                             Power FM Stations. FM translators and                   satellites or reselling satellite                     24 GHz DEMS licenses, 777 39 GHz
                                             Low Power FM Stations are classified in                 telecommunications.’’ Satellite                       licenses, and five 24 GHz licenses, and
                                             the category of Radio Stations and are                  telecommunications service providers                  467 Millimeter Wave licenses in the
                                             assigned the same NAICS Code as                         include satellite and earth station                   microwave services. The Commission
                                             licensees of radio stations. This U.S.                  operators. The category has a small                   has not yet defined a small business size
                                             industry, Radio Stations, comprises                     business size standard of $32.5 million               standard for microwave services. The
                                             establishments primarily engaged in                     or less in average annual receipts, under             closest applicable SBA category is
                                             broadcasting aural programs by radio to                 SBA rules. For this category, U.S.                    Wireless Telecommunications Carriers
                                             the public. Programming may originate                   Census Bureau data for 2012 show that                 (except Satellite) and the appropriate
                                             in their own studio, from an affiliated                 there were a total of 333 firms that                  size standard for this category under
                                             network, or from external sources. The                  operated for the entire year. Of this                 SBA rules is that such a business is
                                             SBA has established a small business                    total, 299 firms had annual receipts of               small if it has 1,500 or fewer employees.
                                             size standard which consists of all radio               less than $25 million. Consequently, the              U.S. Census Bureau data for 2012, show
                                             stations whose annual receipts are $38.5                Commission estimates that the majority                that there were 967 firms in this
                                             million dollars or less. U.S. Census                    of satellite telecommunications                       category that operated for the entire
                                             Bureau data for 2012 indicate that 2,849                providers are small entities.                         year. Of this total, 955 had employment
                                             radio station firms operated during that                   110. All Other Telecommunications.                 of 999 or fewer, and 12 firms had
                                             year. Of that number, 2,806 operated                    The ‘‘All Other Telecommunications’’                  employment of 1,000 employees or
                                             with annual receipts of less than $25                   category is comprised of establishments               more. Thus, under this category and the
                                             million per year, 17 with annual                        that are primarily engaged in providing               associated small business size standard,
                                             receipts between $25 million and                        specialized telecommunications                        the Commission estimates that a
                                             $49,999,999 million and 26 with annual                  services, such as satellite tracking,                 majority of fixed microwave service
                                             receipts of $50 million or more.                        communications telemetry, and radar                   licensees can be considered small.
                                             Therefore, based on the SBA’s size                      station operation. This industry also
                                                                                                                                                              112. The Commission notes that the
                                             standard, the Commission concludes                      includes establishments primarily
                                                                                                                                                           number of firms does not necessarily
                                             that the majority of FM Translator                      engaged in providing satellite terminal
                                                                                                                                                           track the number of licensees. The
                                             Stations and Low Power FM Stations are                  stations and associated facilities
                                                                                                                                                           Commission also notes that it does not
                                             small.                                                  connected with one or more terrestrial
                                                108. Multichannel Video Distribution                                                                       have data specifying the number of
                                                                                                     systems and capable of transmitting
                                             and Data Service (MVDDS). MVDDS is                                                                            these licensees that have more than
                                                                                                     telecommunications to, and receiving
                                             a terrestrial fixed microwave service                                                                         1,500 employees, and thus is unable at
                                                                                                     telecommunications from, satellite
                                             operating in the 12.2–12.7 GHz band.                    systems. Establishments providing                     this time to estimate with greater
                                             The Commission adopted criteria for                     internet services or voice over internet              precision the number of fixed
                                             defining three groups of small                          protocol (VoIP) services via client-                  microwave service licensees that would
                                             businesses for purposes of determining                  supplied telecommunications                           qualify as small business concerns
                                             their eligibility for special provisions                connections are also included in this                 under the SBA’s small business size
                                             such as bidding credits. It defined a very              industry. The SBA has developed a                     standard. The Commission estimates
                                             small business as an entity with average                small business size standard for ‘‘All                however, that virtually all of the Fixed
                                             annual gross revenues not exceeding $3                  Other Telecommunications,’’ which                     Microwave licensees (excluding
                                             million for the preceding three years; a                consists of all such firms with gross                 broadcast auxiliary licensees) would
                                             small business as an entity with average                annual receipts of $32.5 million or less.             qualify as small entities under the SBA
                                             annual gross revenues not exceeding                     For this category, U.S. Census data for               definition.
                                             $15 million for the preceding three                     2012 show that there were 1,442 firms                    113. Non-Licensee Owners of Towers
                                             years; and an entrepreneur as an entity                 that operated for the entire year. Of                 and Other Infrastructure. Although at
                                             with average annual gross revenues not                  these firms, a total of 1,400 had gross               one time most communications towers
                                             exceeding $40 million for the preceding                 annual receipts of less than $25 million              were owned by the licensee using the
                                             three years. These definitions were                     and 42 firms had annual receipts of $25               tower to provide communications
                                             approved by the SBA. On January 27,                     million to $49,999,999. Thus, a majority              service, many towers are now owned by
                                             2004, the Commission completed an                       of ‘‘All Other Telecommunications’’                   third-party businesses that do not
                                             auction of 214 MVDDS licenses                           firms potentially affected by the                     provide communications services
                                             (Auction No. 53). In this auction, ten                  Commission’s action can be considered                 themselves but lease space on their
                                             winning bidders won a total of 192                      small.                                                towers to other companies that provide
                                             MVDDS licenses. Eight of the ten                           111. Fixed Microwave Services.                     communications services. The
                                             winning bidders claimed small business                  Microwave services include common                     Commission’s rules require that any
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                                             status and won 144 of the licenses. The                 carrier, private-operational fixed, and               entity, including a non-licensee,
                                             Commission also held an auction of                      broadcast auxiliary radio services. They              proposing to construct a tower over 200
                                             MVDDS licenses on December 7, 2005                      also include the Local Multipoint                     feet in height or within the glide slope
                                             (Auction 63). Of the three winning                      Distribution Service (LMDS), the Digital              of an airport must register the tower
                                             bidders who won 22 licenses, two                        Electronic Message Service (DEMS), the                with the Commission’s Antenna
                                             winning bidders, winning 21 of the                      39 GHz Service (39 GHz), the 24 GHz                   Structure Registration (‘‘ASR’’) system
                                             licenses, claimed small business status.                Service, and the Millimeter Wave                      and comply with applicable rules


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                                                              Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations                                         51883

                                             regarding review for impact on the                      addition to not adopting any reporting,               from coverage of the rule, or any part
                                             environment and historic properties.                    recordkeeping or other compliance                     thereof, for such small entities.’’
                                                114. As of March 1, 2017, the ASR                    requirements, the Commission takes                       119. The steps taken by the
                                             database includes approximately                         significant steps to reduce regulatory                Commission in the Third Report and
                                             122,157 registration records reflecting a               impediments to infrastructure                         Order eliminate regulatory burdens for
                                             ‘‘Constructed’’ status and 13,987                       deployment and, therefore, to spur the                small entities as well as large companies
                                             registration records reflecting a                       growth of personal wireless services.                 that are involved with the deployment
                                             ‘‘Granted, Not Constructed’’ status.                    Under the Commission’s approach,                      of person wireless services
                                             These figures include both towers                       small entities as well as large companies             infrastructure. By establishing shot
                                             registered to licensees and towers                      will be assured that their deployment                 clocks and guidance on injunctive relief
                                             registered to non-licensee tower owners.                requests will be acted upon within a                  for personal wireless services
                                             The Commission does not keep                            reasonable period of time and, if their               infrastructure deployments, the
                                             information from which we can easily                    applications are not addressed within                 Commission has standardized and
                                             determine how many of these towers are                  the established time frames, applicants               streamlined the permitting process.
                                             registered to non-licensees or how many                 may seek injunctive relief granting their             These changes will significantly
                                             non-licensees have registered towers.                   siting applications. The Commission,                  minimize the economic burden of the
                                             Regarding towers that do not require                    therefore, has taken concrete steps to                siting process on all entities, including
                                             ASR registration, we do not collect                     relieve companies of all sizes of                     small entities, involved in deploying
                                             information as to the number of such                    uncertainly and has eliminated                        personal wireless services
                                             towers in use and therefore cannot                      unnecessary delays.                                   infrastructure. The record shows that
                                             estimate the number of tower owners                        117. The Third Report and Order also               permitting delays imposes significant
                                             that would be subject to the rules on                   does not impose any reporting or                      economic and financial burdens on
                                             which the Commission seeks comment.                     recordkeeping requirements on state                   companies with pending wireless
                                             Moreover, the SBA has not developed a                                                                         infrastructure permits. Eliminating
                                                                                                     and local governments. While some
                                             size standard for small businesses in the                                                                     permitting delays will remove the
                                                                                                     commenters argue that additional shot
                                             category ‘‘Tower Owners.’’ Therefore,                                                                         associated cost burdens and enabling
                                                                                                     clock classifications would make the
                                             the Commission is unable to determine                                                                         significant public interest benefits by
                                                                                                     siting process needlessly complex
                                             the number of non-licensee tower                                                                              speeding up the deployment of personal
                                                                                                     without any proven benefits, the
                                             owners that are small entities. The                                                                           wireless services and infrastructure. In
                                                                                                     Commission concludes that any
                                             Commission believes, however, that                                                                            addition, siting agencies will be able to
                                                                                                     additional administrative burden from
                                             when all entities owning 10 or fewer                                                                          utilize the efficiencies that they have
                                                                                                     increasing the number of Section 332
                                             towers and leasing space for collocation                                                                      gained over the years processing siting
                                                                                                     shot clocks from two to four is
                                             are included, non-licensee tower owners                                                                       applications to minimize financial
                                                                                                     outweighed by the likely significant                  impacts.
                                             number in the thousands. In addition,
                                             there may be other non-licensee owners                  benefit of regulatory certainty and the                  120. The Commission considered but
                                             of other wireless infrastructure,                       resulting streamlined deployment                      did not adopt proposals by commenters
                                             including Distributed Antenna Systems                   process. The Commission’s actions are                 to issue ‘‘Best Practices’’ or
                                             (DAS) and small cells that might be                     consistent with the statutory language of             ‘‘Recommended Practices,’’ and to
                                             affected by the measures on which the                   Section 332 and therefore reflect                     develop an informal dispute resolution
                                             Commission seeks comment. The                           Congressional intent. Further, siting                 process and mediation program, noting
                                             Commission does not have any basis for                  agencies have become more efficient in                that the steps taken in the Third Report
                                             estimating the number of such non-                      processing siting applications and will               and Order address the concerns
                                             licensee owners that are small entities.                be able to take advantage of these                    underlying these proposals to facilitate
                                                115. The closest applicable SBA                      efficiencies in meeting the new shot                  cooperation between parties to reach
                                             category is All Other                                   clocks. As a result, the additional shot              mutually agreed upon solutions. The
                                             Telecommunications, and the                             clocks that the Commission adopts will                Commission anticipates that the
                                             appropriate size standard consists of all               foster the deployment of the latest                   changes it has made to the permitting
                                             such firms with gross annual receipts of                wireless technology and serve consumer                process will provide significant
                                             $32.5 million or less. For this category,               interests.                                            efficiencies in the deployment of
                                             U.S. Census data for 2012 show that                     6. Steps Taken To Minimize the                        personal wireless services facilities and
                                             there were 1,442 firms that operated for                Significant Economic Impact on Small                  this in turn will benefit all companies,
                                             the entire year. Of these firms, a total of             Entities, and Significant Alternatives                but particularly small entities, that may
                                             1,400 had gross annual receipts of less                 Considered                                            not have the resources and economies of
                                             than $25 million and 15 firms had                                                                             scale of larger entities to navigate the
                                             annual receipts of $25 million to                          118. The RFA requires an agency to                 permitting process. By adopting these
                                             $49,999,999. Thus, under this SBA size                  describe any significant alternatives that            changes, the Commission will continue
                                             standard a majority of the firms                        it has considered in reaching its                     to fulfill its statutory responsibilities,
                                             potentially affected by the                             approach, which may include the                       while reducing the burden on small
                                             Commission’s action can be considered                   following four alternatives (among                    entities by removing unnecessary
                                             small.                                                  others): ‘‘(1) The establishment of                   impediments to the rapid deployment of
                                                                                                     differing compliance or reporting                     personal wireless services facilities and
                                             5. Description of Projected Reporting,                  requirements or timetables that take into             infrastructure across the country.
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                                             Recordkeeping, and Other Compliance                     account the resources available to small
                                             Requirements for Small Entities                         entities; (2) the clarification,                      7. Report to Congress
                                                116. The Third Report and Order does                 consolidation, or simplification of                      121. The Commission will send a
                                             not establish any reporting,                            compliance and reporting requirements                 copy of the Third Report and Order,
                                             recordkeeping, or other compliance                      under the rule for such small entities;               including this FRFA, in a report to
                                             requirements for companies involved in                  (3) the use of performance rather than                Congress pursuant to the Congressional
                                             wireless infrastructure deployment. In                  design standards; and (4) an exemption                Review Act. In addition, the


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                                             51884            Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations

                                             Commission will send a copy of the                        128. It is further ordered that the                 grant of a siting application or issuance
                                             Third Report and Order, including this                  Commission’s Consumer &                               of a written decision denying a siting
                                             FRFA, to the Chief Counsel for                          Governmental Affairs Bureau, Reference                application.
                                             Advocacy of the SBA. A copy of the                      Information Center, shall send a copy of                 (b) Antenna, consistent with
                                             Third Report and Order and FRFA (or                     this Declaratory Ruling and Third                     § 1.1320(d), means an apparatus
                                             summaries thereof) also will be                         Report and Order, including the Final                 designed for the purpose of emitting
                                             published in the Federal Register.                      Regulatory Flexibility Analysis, to the               radiofrequency (RF) radiation, to be
                                                                                                     Chief Counsel for Advocacy of the Small               operated or operating from a fixed
                                             B. Paperwork Reduction Act
                                                                                                     Business Administration.                              location pursuant to Commission
                                               122. This Third Report and Order                        129. It is further ordered that this                authorization, for the provision of
                                             does not contain new or revised                         Declaratory Ruling and Third Report                   personal wireless service and any
                                             information collection requirements                     and Order shall be sent to Congress and               commingled information services. For
                                             subject to the Paperwork Reduction Act                  the Government Accountability Office                  purposes of this definition, the term
                                             of 1995 (PRA), Public Law 104–13.                       pursuant to the Congressional Review                  antenna does not include an
                                             C. Congressional Review Act                             Act, see 5 U.S.C. 801(a)(1)(A).                       unintentional radiator, mobile station,
                                                                                                     List of Subjects in 47 CFR Part 1                     or device authorized under part 15 of
                                               123. The Commission will send a                                                                             this chapter.
                                             copy of this Declaratory Ruling and                       Communications common carriers,                        (c) Antenna equipment, consistent
                                             Third Report and Order in a report to be                Communications equipment,                             with § 1.1320(d), means equipment,
                                             sent to Congress and the Government                     Environmental protection, Historic                    switches, wiring, cabling, power
                                             Accountability Office pursuant to the                   preservation, Radio,                                  sources, shelters or cabinets associated
                                             Congressional Review Act (CRA), see 5                   Telecommunications.                                   with an antenna, located at the same
                                             U.S.C. 801(a)(1)(A).                                    Federal Communications Commission.                    fixed location as the antenna, and, when
                                             IV. Ordering Clauses                                    Cecilia Sigmund,                                      collocated on a structure, is mounted or
                                               124. Accordingly, it is ordered,                      Federal Register Liaison Officer, Office of the       installed at the same time as such
                                             pursuant to sections 1, 4(i)–(j), 7, 201,               Secretary.                                            antenna.
                                             253, 301, 303, 309, 319, and 332 of the                                                                          (d) Antenna facility means an antenna
                                                                                                     Final Rules
                                             Communications Act of 1934, as                                                                                and associated antenna equipment.
                                                                                                       For the reasons discussed in the                       (e) Applicant means a person or entity
                                             amended, 47 U.S.C. 151, 154(i)–(j), 157,
                                                                                                     preamble, the Federal Communications                  that submits a siting application and the
                                             201, 253, 301, 303, 309, 319, 332, that
                                                                                                     Commission amends 47 CFR part 1 as                    agents, employees, and contractors of
                                             this Declaratory Ruling and Third
                                                                                                     follows:                                              such person or entity.
                                             Report and Order in WT Docket No. 17–
                                             79 is hereby adopted.                                                                                            (f) Authorization means any approval
                                                                                                     PART 1—PRACTICE AND                                   that a siting authority must issue under
                                                125. It is further ordered that part 1               PROCEDURE
                                             of the Commission’s rules is amended                                                                          applicable law prior to the deployment
                                             as set forth in the final rules of this                 ■ 1. The authority citation for part 1                of personal wireless service facilities,
                                             Declaratory Ruling and Third Report                     continues to read as follows:                         including, but not limited to, zoning
                                             and Order, and that these changes shall                                                                       approval and building permit.
                                                                                                       Authority: 47 U.S.C. chs. 2, 5, 9, 13; Sec.            (g) Collocation, consistent with
                                             be effective January 14, 2019.                          102(c), Div. P, Public Law 115–141, 132 Stat.
                                                126. It is further ordered that this                 1084; 28 U.S.C. 2461, unless otherwise noted.
                                                                                                                                                           § 1.1320(d) and the Nationwide
                                             Third Report and Order shall be                                                                               Programmatic Agreement (NPA) for the
                                             effective January 14, 2019. The                         ■ 2. Add subpart U, consisting of                     Collocation of Wireless Antennas,
                                             Declaratory Ruling and the obligations                  §§ 1.6001 through 1.6003, to read as                  appendix B of this part, section I.B,
                                             set forth therein are effective on the                  follows:                                              means—
                                             same day that this Third Report and                                                                              (1) Mounting or installing an antenna
                                                                                                     Subpart U—State and Local
                                             Order becomes effective. It is our                                                                            facility on a pre-existing structure; and/
                                                                                                     Government Regulation of the
                                             intention in adopting the foregoing                                                                           or
                                                                                                     Placement, Construction, and
                                             Declaratory Ruling and these rule                                                                                (2) Modifying a structure for the
                                                                                                     Modification of Personal Wireless
                                             changes that, if any provision of the                                                                         purpose of mounting or installing an
                                                                                                     Service Facilities
                                             Declaratory Ruling or the rules, or the                                                                       antenna facility on that structure.
                                             application thereof to any person or                    Sec.                                                     (3) The definition of ‘‘collocation’’ in
                                             circumstance, is held to be unlawful,                   1.6001 Purpose.                                       § 1.6100(b)(2) applies to the term as
                                             the remaining portions of such                          1.6002 Definitions.                                   used in that section.
                                             Declaratory Ruling and the rules not                    1.6003 Reasonable periods of time to act on              (h) Deployment means placement,
                                                                                                          siting applications.                             construction, or modification of a
                                             deemed unlawful, and the application
                                             of such Declaratory Ruling and the rules                § 1.6001    Purpose.                                  personal wireless service facility.
                                             to other person or circumstances, shall                   This subpart implements 47 U.S.C.                      (i) Facility or personal wireless service
                                             remain in effect to the fullest extent                  332(c)(7) and 1455.                                   facility means an antenna facility or a
                                             permitted by law.                                                                                             structure that is used for the provision
                                                127. It is further ordered that,                     § 1.6002    Definitions.                              of personal wireless service, whether
                                             pursuant to 47 CFR 1.4(b)(1), the period                  Terms not specifically defined in this              such service is provided on a stand-
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                                             for filing petitions for reconsideration or             section or elsewhere in this subpart                  alone basis or commingled with other
                                             petitions for judicial review of this                   have the meanings defined in this part                wireless communications services.
                                             Declaratory Ruling and Third Report                     and the Communications Act of 1934,                      (j) Siting application or application
                                             and Order will commence on the date                     47 U.S.C. 151 et seq. Terms used in this              means a written submission to a siting
                                             that a summary of this Declaratory                      subpart have the following meanings:                  authority requesting authorization for
                                             Ruling and Third Report and Order is                      (a) Action or to act on a siting                    the deployment of a personal wireless
                                             published in the Federal Register.                      application means a siting authority’s                service facility at a specified location.


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                                                              Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations                                          51885

                                                (k) Siting authority means a State                      (2) The number of days of the tolling                 (2) For all other initial applications,
                                             government, local government, or                        period, if any, pursuant to paragraph (d)             the tolling period shall be the number
                                             instrumentality of a State government or                of this section.                                      of days from—
                                             local government, including any official                   (c) Presumptively reasonable periods                  (i) The day after the date when the
                                             or organizational unit thereof, whose                   of time—(1) Review periods for                        siting authority notifies the applicant in
                                             authorization is necessary prior to the                 individual applications. The following                writing that the application is materially
                                             deployment of personal wireless service                 are the presumptively reasonable                      incomplete and clearly and specifically
                                             facilities.                                             periods of time for action on                         identifies the missing documents or
                                                (l) Small wireless facilities, consistent            applications seeking authorization for                information that the applicant must
                                             with § 1.1312(e)(2), are facilities that                deployments in the categories set forth               submit to render the application
                                             meet each of the following conditions:                  in paragraphs (c)(1)(i) through (iv) of               complete and the specific rule or
                                                (1) The facilities—                                  this section:                                         regulation creating this obligation; until
                                                (i) Are mounted on structures 50 feet                   (i) Review of an application to                       (ii) The date when the applicant
                                             or less in height including their                       collocate a Small Wireless Facility using             submits all the documents and
                                             antennas as defined in § 1.1320(d); or                  an existing structure: 60 days.                       information identified by the siting
                                                (ii) Are mounted on structures no                       (ii) Review of an application to                   authority to render the application
                                             more than 10 percent taller than other                  collocate a facility other than a Small               complete;
                                             adjacent structures; or                                 Wireless Facility using an existing                      (iii) But only if the notice pursuant to
                                                (iii) Do not extend existing structures              structure: 90 days.                                   paragraph (d)(2)(i) of this section is
                                             on which they are located to a height of                   (iii) Review of an application to                  effectuated on or before the 30th day
                                             more than 50 feet or by more than 10                    deploy a Small Wireless Facility using                after the date when the application was
                                             percent, whichever is greater;                          a new structure: 90 days.                             submitted; or
                                                (2) Each antenna associated with the                    (iv) Review of an application to                      (3) For resubmitted applications
                                             deployment, excluding associated                        deploy a facility other than a Small                  following a notice of deficiency, the
                                             antenna equipment (as defined in the                    Wireless Facility using a new structure:              tolling period shall be the number of
                                             definition of ‘‘antenna’’ in § 1.1320(d)),              150 days.                                             days from—
                                             is no more than three cubic feet in                        (2) Batching. (i) If a single application             (i) The day after the date when the
                                             volume;                                                 seeks authorization for multiple                      siting authority notifies the applicant in
                                                (3) All other wireless equipment                     deployments, all of which fall within a               writing that the applicant’s
                                             associated with the structure, including                category set forth in either paragraph                supplemental submission was not
                                             the wireless equipment associated with                  (c)(1)(i) or (iii) of this section, then the          sufficient to render the application
                                             the antenna and any pre-existing                        presumptively reasonable period of time               complete and clearly and specifically
                                             associated equipment on the structure,                  for the application as a whole is equal               identifies the missing documents or
                                             is no more than 28 cubic feet in volume;                to that for a single deployment within                information that need to be submitted
                                                (4) The facilities do not require                    that category.                                        based on the siting authority’s original
                                             antenna structure registration under part                  (ii) If a single application seeks                 request under paragraph (d)(1) or (2) of
                                             17 of this chapter;                                     authorization for multiple deployments,               this section; until
                                                (5) The facilities are not located on                the components of which are a mix of                     (ii) The date when the applicant
                                             Tribal lands, as defined under 36 CFR                   deployments that fall within paragraph                submits all the documents and
                                             800.16(x); and                                          (c)(1)(i) of this section and deployments             information identified by the siting
                                                (6) The facilities do not result in                  that fall within paragraph (c)(1)(iii) of             authority to render the application
                                             human exposure to radiofrequency                        this section, then the presumptively                  complete;
                                             radiation in excess of the applicable                   reasonable period of time for the                        (iii) But only if the notice pursuant to
                                             safety standards specified in § 1.1307(b).              application as a whole is 90 days.                    paragraph (d)(3)(i) of this section is
                                                (m) Structure means a pole, tower,                      (iii) Siting authorities may not refuse            effectuated on or before the 10th day
                                             base station, or other building, whether                to accept applications under paragraphs               after the date when the applicant makes
                                             or not it has an existing antenna facility,             (c)(2)(i) and (ii) of this section.                   a supplemental submission in response
                                             that is used or to be used for the                         (d) Tolling period. Unless a written               to the siting authority’s request under
                                             provision of personal wireless service                  agreement between the applicant and                   paragraph (d)(1) or (2) of this section.
                                             (whether on its own or comingled with                   the siting authority provides otherwise,                 (e) Shot clock date. The shot clock
                                             other types of services).                               the tolling period for an application (if             date for a siting application is
                                                                                                     any) is as set forth in paragraphs (d)(1)             determined by counting forward,
                                             § 1.6003 Reasonable periods of time to act              through (3) of this section.                          beginning on the day after the date
                                             on siting applications.                                    (1) For an initial application to deploy           when the application was submitted, by
                                               (a) Timely action required. A siting                  Small Wireless Facilities, if the siting              the number of calendar days of the shot
                                             authority that fails to act on a siting                 authority notifies the applicant on or                clock period identified pursuant to
                                             application on or before the shot clock                 before the 10th day after submission                  paragraph (b) of this section and
                                             date for the application, as defined in                 that the application is materially                    including any pre-application period
                                             paragraph (e) of this section, is                       incomplete, and clearly and specifically              asserted by the siting authority;
                                             presumed not to have acted within a                     identifies the missing documents or                   provided, that if the date calculated in
                                             reasonable period of time.                              information and the specific rule or                  this manner is a ‘‘holiday’’ as defined in
                                               (b) Shot clock period. The shot clock                 regulation creating the obligation to                 § 1.4(e)(1) or a legal holiday within the
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                                             period for a siting application is the sum              submit such documents or information,                 relevant State or local jurisdiction, the
                                             of—                                                     the shot clock date calculation shall                 shot clock date is the next business day
                                               (1) The number of days of the                         restart at zero on the date on which the              after such date. The term ‘‘business
                                             presumptively reasonable period of time                 applicant submits all the documents                   day’’ means any day as defined in
                                             for the pertinent type of application,                  and information identified by the siting              § 1.4(e)(2) and any day that is not a legal
                                             pursuant to paragraph (c) of this section;              authority to render the application                   holiday as defined by the State or local
                                             plus                                                    complete.                                             jurisdiction.


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                                             51886            Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Rules and Regulations

                                             § 1.40001 [Redesignated as § 1.6100 and                 Subpart CC—[Removed]
                                             Amended]
                                             ■ 3. Redesignate § 1.40001 as § 1.6100                  ■   4. Remove subpart CC.
                                             and, in newly redesignated § 1.6100,                    [FR Doc. 2018–22234 Filed 10–12–18; 8:45 am]
                                             remove and reserve paragraph (a).                       BILLING CODE 6712–01–P
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Document Created: 2018-10-13 10:03:59
Document Modified: 2018-10-13 10:03:59
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective January 14, 2019.
ContactJiaming Shang, Deputy Chief (Acting) Competition and Infrastructure Policy Division, Wireless Telecommunications Bureau, (202) 418-1303, email [email protected]
FR Citation83 FR 51867 
CFR AssociatedCommunications Common Carriers; Communications Equipment; Environmental Protection; Historic Preservation; Radio and Telecommunications

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