83_FR_61588 83 FR 61358 - Regulation of Business Data Services for Rate-of-Return Local Exchange Carriers; Business Data Services in an Internet Protocol Environment; Special Access for Price Cap Local Exchange Carriers

83 FR 61358 - Regulation of Business Data Services for Rate-of-Return Local Exchange Carriers; Business Data Services in an Internet Protocol Environment; Special Access for Price Cap Local Exchange Carriers

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 83, Issue 230 (November 29, 2018)

Page Range61358-61365
FR Document2018-25786

The Commission seeks comment on proposals to eliminate ex ante pricing regulation for price cap incumbent LECs' provision of TDM and other transport business data services. The Commission also seeks comment on the conditions under which ex ante pricing regulations should be eliminated for lower capacity TDM transport business data services offerings by rate-of-return carriers opting in to the Commission's new light-touch regulatory framework. With these steps, the Commission continues its ongoing efforts to modernize regulations for the dynamic and evolving business data services market.

Federal Register, Volume 83 Issue 230 (Thursday, November 29, 2018)
[Federal Register Volume 83, Number 230 (Thursday, November 29, 2018)]
[Proposed Rules]
[Pages 61358-61365]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25786]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 61 and 69

[WC Docket Nos. 17-144, 16-143, 05-25; FCC 18-146]


Regulation of Business Data Services for Rate-of-Return Local 
Exchange Carriers; Business Data Services in an Internet Protocol 
Environment; Special Access for Price Cap Local Exchange Carriers

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Commission seeks comment on proposals to eliminate ex ante 
pricing regulation for price cap incumbent LECs' provision of TDM and 
other transport business data services. The Commission also seeks 
comment on the conditions under which ex ante pricing regulations 
should be eliminated for lower capacity TDM transport business data 
services offerings by rate-of-return carriers opting in to the 
Commission's new light-touch regulatory framework. With these steps, 
the Commission continues its ongoing efforts to modernize regulations 
for the dynamic and evolving business data services market.

DATES: Comments are due on or before January 14, 2019. Reply comments 
are due on or before February 12, 2019.

ADDRESSES: Federal Communications Commission, 445 12th St. SW, 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Justin Faulb, Wireline Competition 
Bureau, Pricing Policy Division, at 202-418-1589 or via email at 
justin.faulb@fcc.gov.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Further Notice of Proposed Rulemaking, and Further Notice of Proposed 
Rulemaking, released October 24, 2018. A full-text copy may be obtained 
at the following internet address: https://drupal7admin.fcc.gov/document/fcc-spurs-competition-rural-business-data-services-0.

Background

    1. In light of the Eighth Circuit Court's recent decision upholding 
the bulk of the Commission's price cap BDS Order,

[[Page 61359]]

but finding that the Commission provided insufficient notice of its 
decision to end ex ante pricing regulation of TDM transport services 
offered by price cap carriers, we now propose to eliminate ex ante 
pricing regulation of price cap incumbent LECs' provision of TDM 
transport and other transport (i.e., non-end user channel termination) 
business data services and seek comment on this proposal. We also take 
this opportunity to seek comment on the circumstances under which we 
should eliminate ex ante pricing regulation of lower capacity TDM 
transport services (at or below a DS3 bandwidth) offered by those rate-
of-return carriers that receive fixed high-cost universal service 
support and elect the lighter touch regulatory framework.

A. Eliminating Ex Ante Pricing Regulation of TDM Transport Services 
Provided by Price Cap Carriers

    2. For the better part of the last two decades, in response to 
increasing competition for TDM transport in areas of the country served 
by price cap carriers, the Commission has consistently worked to modify 
and streamline regulation of such services. Most TDM transport offered 
by price cap carriers has been subject to some form of pricing 
flexibility as a result of the Commission's 1999 Pricing Flexibility 
Order. In adopting the Pricing Flexibility Order, the Commission 
acknowledged that, because transport services encompass higher capacity 
middle-mile segments of the network, facility-based entry was more 
likely to occur for those services than for end user channel 
terminations, and therefore set lower thresholds for carriers to 
demonstrate competition and obtain pricing flexibility. Although the 
Commission suspended further grants of pricing flexibility in 2012, it 
did not revoke any pricing flexibility previously granted.
    3. In the BDS Order, the Commission evaluated the record before it 
and concluded that there was sufficient competition to justify 
nationwide pricing relief for TDM transport offered by price cap 
carriers. The record shows, for example, that some major urban areas 
have as many as 28 transport competitors while second-tier MSAs 
commonly have more than a dozen competitors. More broadly, the record 
shows that in 2013, 92.1% of buildings served with BDS demand in price 
cap territories were within a half mile of competitive fiber transport 
facilities. Further, the record shows that 89.6% of all price cap 
census blocks with BDS demand had at least one served building within a 
half mile of competitive fiber. Thus, the Commission found that ``the 
vast majority'' of locations featuring BDS demand had competitive fiber 
within close proximity. The Commission added that its data were 
conservative given the limits of the 2015 Collection, and that the data 
in that collection are from 2013, and therefore necessarily understate 
the level of current competition.
    4. On appeal, the Eighth Circuit Court largely affirmed the BDS 
Order, but found the Commission did not provide adequate notice on the 
narrow issue of ending ex ante pricing regulation of TDM transport 
services. The court vacated those portions of the BDS Order dealing 
with TDM transport and remanded them to the Commission for further 
action, which we initiate here.
    5. The current record includes ``strong evidence of substantial 
competition'' in price cap TDM transport markets. In addition to 
showing that there is ``widespread deployment of competitive transport 
networks'' in price cap areas, the record also indicates that transport 
services are ``typically higher volume services . . . which can more 
easily justify competitive investment and deployment.''
    6. In light of the current record of substantial competition and 
competitive pressure on TDM transport services in price cap areas, we 
now propose to eliminate nationwide ex ante pricing regulation of price 
cap carriers' TDM transport services and seek comment on our proposal. 
Specifically, we propose granting price cap carriers forbearance 
pursuant to section 10 of the Communications Act of 1934, as amended 
(the Act) from section 203 tariffing requirements for their TDM 
transport business data services and other transport special access 
service offerings. Consistent with the transition adopted in the BDS 
Order for packet-based and higher capacity TDM BDS, we propose 
permissive detariffing for price cap carriers' TDM transport services 
for a transition period, followed thereafter by mandatory detariffing 
of these business data services. We propose to end the transition 
period for price cap carriers' TDM transport services on the same date 
that the transition period mandated by the BDS Order for price cap 
carriers' other BDS services is scheduled to end--August 1, 2020--to 
align these transition periods and simplify their administration. In 
addition, we propose, for six (6) months following the effective date 
of an order adopting final rules, to require price cap carriers to 
freeze the tariffed rates for their TDM transport services, as long as 
those services remain tariffed. We seek comment on these proposals.
    7. We propose that during this transition, tariffing for these 
transport services will be permissive--the Commission will accept new 
tariffs and revisions to existing tariffs for the affected services. 
Apart from the rate freeze noted above, carriers will no longer be 
required to comply with price cap regulation for these services, and 
once the rules proposed in this Second Further Notice are effective, 
carriers that wish to continue filing tariffs under the permissive 
detariffing regime would be free to modify such tariffs to reflect the 
new regulatory structure outlined in this Second Further Notice for the 
affected services. We propose allowing price cap carriers to remove the 
relevant portions of their tariffs for the affected services at any 
time during the transition, and for the rate freeze to no longer apply 
to services that are not tariffed. We propose that once the transition 
ends, no price cap carrier may file or maintain any interstate tariffs 
for affected business data services. We seek comment on these 
proposals.
    8. We also seek comment on our analysis of the TDM transport market 
for price cap carriers. To what extent does the Commission's 
competitive analysis in the BDS Order continue to represent an accurate 
assessment of the competitive nature of the TDM transport market in 
price cap areas? Has the market for TDM transport in price cap areas 
changed materially since the Commission adopted the BDS Order? Is there 
evidence that competition for TDM transport has changed in these 
markets since the Commission last analyzed this market? Are there 
providers of TDM transport that were not identified by the 2015 
Collection? How has this growth in competition impacted demand for TDM 
transport? In addition to the evidence the Commission previously 
considered in finding that there is sufficient competition to justify 
nationwide pricing relief for TDM transport offered by price cap 
carriers, there are indications that cable providers' market share of 
lower speed business data services continues to grow significantly. As 
a competitor, cable operators self-provision all aspects of their BDS, 
including transport functionality, and rarely, if ever, collocate at 
incumbent LEC end offices. This increased competition from cable 
operators is in addition to competition from other providers. Given 
that cable competition does not typically rely on the TDM transport 
provided by incumbent local exchange carriers because they have built 
out their own networks, how should we factor such competition into

[[Page 61360]]

a comprehensive analysis of TDM transport competition in price cap 
areas? Additionally, to what extent has the increase in demand for 
packet-based business data services and the resulting decrease in 
demand for TDM services affected competition for TDM transport?
    9. We seek comment on whether we should consider any alternatives 
to removing ex ante pricing regulation for TDM transport offered by 
price cap carriers to better align our regulation with the dynamic and 
evolving nature of the business data services market. Should we, for 
example, adopt a competitive market test to measure the competitiveness 
of TDM transport offerings in areas served by price cap carriers? If 
so, how should such a test be structured? Should such a test assess 
competition using the counties served by price cap carriers as the 
relevant geographic market, as we do with the competitive market test 
for price cap carriers' lower capacity TDM end user channel 
terminations? Alternatively, should we use the same competitive market 
test for TDM transport offerings of price cap carriers as we do for 
lower capacity TDM end user channel terminations offered by price cap 
carriers? If we adopt a competitive market test for TDM transport 
offered by price cap carriers, how should we implement the results of 
such a test? Should we adopt similar transition provisions as those we 
adopted for the competitive market test for end user channel 
terminations in the BDS Order?
    10. We invite interested parties to submit any additional data or 
information regarding the state of competition for TDM transport 
services in price cap areas. Are there more current data available on 
the state of competition for TDM transport services that could enhance 
our analysis of this market? Are there any other ways of measuring or 
estimating competition for TDM transport in areas served by price cap 
carriers that have not already been used by the Commission? Are there 
other types of data that could represent a proxy for competition in the 
TDM transport market in areas served by price cap carriers? While the 
data in the 2015 Collection are not as current as some more recent 
sources, the collection nonetheless remains the most comprehensive 
source of data for business data services. We will therefore again make 
these data available to interested parties using the same procedures 
the Commission previously used.

B. Eliminating Ex Ante Pricing Regulation of Lower Capacity TDM 
Transport Provided by Carriers That Receive Fixed Universal Service 
Support and Elect Incentive Regulation for Their BDS Offerings

    11. We also seek comment on providing a path to eliminating ex ante 
pricing regulation of lower capacity (i.e., at or below a DS3 bandwidth 
level) TDM transport services, including other transport (i.e., non-end 
user channel termination) special access services, offered by rate-of-
return carriers that receive fixed high-cost universal service support, 
and elect our new lighter touch regulatory framework (electing 
carriers) for their BDS. In that framework, electing carriers' lower 
capacity circuit-based BDS, including their TDM transport and end user 
channel terminations, are converted to incentive regulation, and are 
offered subject to pricing flexibility that includes contract tariff 
pricing and term and volume discount plans. We also adopt a competitive 
market test for removing ex ante pricing regulation from electing 
carriers' lower capacity TDM end user channel terminations. However, 
based on the current record, we declined to adopt a competitive market 
test for electing carriers' lower capacity TDM transport, nor did we 
eliminate all ex ante pricing regulation for lower capacity TDM 
transport provided by electing carriers. As the Commission explained in 
the Notice, competition for electing carriers' lower capacity TDM 
transport may not be as robust in the less dense and more rural study 
areas that rate-of-return carriers typically serve, compared to denser 
and more populated price cap study areas.
    12. The Commission has long recognized transport is more 
competitive than end user channel terminations and required a different 
competitive showing for reduced pricing regulation. Given that we are 
proposing to eliminate ex ante pricing regulation of TDM transport 
services in price cap areas, we also seek further comment on whether, 
and under what circumstances, we should remove ex ante pricing 
regulation for electing carriers' lower capacity TDM transport. We 
previously declined to remove ex ante pricing regulation of TDM 
transport services because the record lacks data sufficient to justify 
such a step. We invite commenters to provide or identify data that 
would justify further pricing deregulation of electing carriers' lower 
capacity TDM transport.
    13. If there are such data, should we use that data to adopt a 
competitive market test for determining whether to relieve electing 
carriers' lower capacity TDM transport of ex ante pricing regulation in 
a particular study area? Were we to adopt a competitive market test for 
electing carriers' lower capacity TDM transport, how should it be 
structured? Should such a test largely mirror the structure of the 
current electing carrier competitive market test for lower capacity TDM 
end user channel terminations?
    14. If we adopt a competitive market test for lower capacity TDM 
transport offered by electing carriers, how should we implement the 
results of such a test? Should we adopt similar transition provisions 
as those we adopt for the competitive market test for electing 
carriers' lower capacity TDM end user channel terminations? Are there 
any reasons to structure the transition differently?
    15. In the alternative, we seek comment on whether we should remove 
ex ante pricing regulations for lower capacity TDM transport offered by 
electing carriers nationwide. Is there data available that would show 
nationwide competition sufficient to remove ex ante pricing regulation? 
How would we analyze the data given the variability of competition in 
areas served by electing rate-of-return carriers? Is there evidence of 
competition for lower capacity TDM transport in these areas consistent 
with the competition the Commission determined was present in price cap 
areas nationwide?
    16. We also seek comment on AT&T's recommendation that we base our 
decisions on data specific to electing carriers and their operating 
territories. We recognize that a large data collection would be a 
burden on rate-of-return carriers' limited resources, and we want to 
avoid imposing unnecessary regulatory burdens on them. We therefore 
request that commenters provide or identify additional data or other 
information relevant to the status of competition for lower capacity 
TDM transport in the study areas served by the rate-of-return carriers 
eligible to elect incentive regulation, including data on transport 
competition and competitive fiber deployment. Are there existing data 
collections that could be used as a proxy for the presence of lower 
capacity TDM transport competition in areas served by rate-of-return 
carriers eligible to elect incentive regulation? For example, in the 
BDS Order, the Commission relied in part on competitive fiber maps, 
building locations, and Census data to assess competition for TDM 
transport in price cap areas. Alternatively, Petitioners submitted a 
study in the record of this

[[Page 61361]]

proceeding that included certain types of demographic and competitive 
data that they contend are reasonable proxies for lower capacity TDM 
transport competition in their service areas. Parties should comment on 
the usefulness of these proxies and whether there are others that could 
provide a reasonable basis for Commission action.
1. Need for, and Objectives of, the Proposed Rules
    17. In the FNPRMs, we propose changes to, and seek comment on, the 
appropriate regulatory treatment of TDM transport business data 
services (BDS) offerings offered by both price cap carriers and rate-
of-return carriers that receive fixed universal service support and 
elect incentive regulation. In the FNPRMs, the Commission proposes to 
remove ex ante pricing regulation from TDM transport business data 
services offered by price cap carriers and seeks comment on doing so 
for rate-of-return carriers.
a. Legal Basis
    18. The legal basis for any action that may be taken pursuant to 
the FNPRMs is contained in sections 1, 4(i), 10, and 201(b) of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 160, and 
201(b).
2. Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules Will Apply
    19. 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 proposed rules and by the rule revisions on which the 
FNPRMs seek comment, if adopted. 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.
a. Total Small Entities
    20. Small Businesses, Small Organizations, Small Governmental 
Jurisdictions. Our actions, over time, may affect small entities that 
are not easily categorized at present. We 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% of all businesses in the United States which translates to 28.8 
million businesses.
    21. 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).
    22. Finally, the small entity described as a ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, 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 indicates 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 shows that the majority of these governments have populations 
of less than 50,000. Based on these data we estimate that at least 
49,316 local government jurisdictions fall in the category of ``small 
governmental jurisdictions.''
b. Broadband Internet Access Service Providers
    23. Internet Service Providers (Broadband). Broadband internet 
service providers include wired (e.g., cable, DSL) and VoIP service 
providers using their own operated wired telecommunications 
infrastructure fall in the category of Wired Telecommunication 
Carriers. 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 
wired telecommunications networks. Transmission facilities may be based 
on a single technology or a combination of technologies. The SBA size 
standard for this category classifies a business as small if it has 
1,500 or fewer employees. U.S. Census 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. Consequently, under this size standard 
the majority of firms in this industry can be considered small.
c. Wireline Providers
    24. Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as ``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 wired communications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services, wired (cable) audio and video programming 
distribution, and wired broadband internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry.'' The SBA has developed a small business size standard 
for Wired Telecommunications Carriers, which consists of all such 
companies having 1,500 or fewer employees. Census 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.
    25. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for incumbent LEC services. The closest applicable size 
standard under SBA rules is for the category Wired Telecommunications 
Carriers as defined above. Under that size standard, such a business is 
small if it has 1,500 or fewer employees. According to Commission data, 
3,117 firms operated in that year. Of this total, 3,083 operated with 
fewer than 1,000 employees. Consequently, the Commission estimates that 
most providers of incumbent local exchange service are small businesses 
that may be affected by the rules and policies adopted. A total of 
1,307 firms reported that they were incumbent local exchange service

[[Page 61362]]

providers. Of this total, an estimated 1,006 have 1,500 or fewer 
employees.
    26. Competitive Local Exchange Carriers (Competitive LECs), 
Competitive Access Providers (CAPs), Shared-Tenant Service Providers, 
and Other Local Service Providers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for these 
service providers. The appropriate NAICS Code category is Wired 
Telecommunications Carriers, as defined above. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
U.S. Census data for 2012 indicate that 3,117 firms operated during 
that year. Of that number, 3,083 operated with fewer than 1,000 
employees. Based on this data, the Commission concludes that the 
majority of Competitive LECS, CAPs, Shared-Tenant Service Providers, 
and Other Local Service Providers, are small entities. According to 
Commission data, 1,442 carriers reported that they were engaged in the 
provision of either competitive local exchange services or competitive 
access provider services. Of these 1,442 carriers, an estimated 1,256 
have 1,500 or fewer employees. In addition, 17 carriers have reported 
that they are Shared-Tenant Service Providers, and all 17 are estimated 
to have 1,500 or fewer employees. Also, 72 carriers have reported that 
they are Other Local Service Providers. Of this total, 70 have 1,500 or 
fewer employees. Consequently, based on internally researched FCC data, 
the Commission estimates that most providers of competitive local 
exchange service, competitive access providers, Shared-Tenant Service 
Providers, and Other Local Service Providers are small entities.
    27. We have included small incumbent LECs in this present RFA 
analysis. As noted above, a ``small business'' under the RFA is one 
that, inter alia, meets the pertinent small business size standard 
(e.g., a telephone communications business having 1,500 or fewer 
employees), and ``is not dominant in its field of operation.'' The 
SBA's Office of Advocacy contends that, for RFA purposes, small 
incumbent LECs are not dominant in their field of operation because any 
such dominance is not ``national'' in scope. We have therefore included 
small incumbent LECs in this RFA analysis, although we emphasize that 
this RFA action has no effect on Commission analyses and determinations 
in other, non-RFA contexts.
    28. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a definition for Interexchange Carriers. The closest 
NAICS Code category is Wired Telecommunications Carriers as defined 
above. The applicable size standard under SBA rules is that such a 
business is small if it has 1,500 or fewer employees. U.S. Census data 
for 2012 indicates that 3,117 firms operated during that year. Of that 
number, 3,083 operated with fewer than 1,000 employees. According to 
internally developed Commission data, 359 companies reported that their 
primary telecommunications service activity was the provision of 
interexchange services. Of this total, an estimated 317 have 1,500 or 
fewer employees. Consequently, the Commission estimates that the 
majority of IXCs are small entities that may be affected by our 
proposed rules.
    29. Local Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. The 
Telecommunications Resellers industry comprises establishments engaged 
in purchasing access and network capacity from owners and operators of 
telecommunications networks and reselling wired and wireless 
telecommunications services (except satellite) to businesses and 
households. Establishments in this industry resell telecommunications; 
they do not operate transmission facilities and infrastructure. Mobile 
virtual network operators (MVNOs) are included in this industry. Under 
that size standard, such a business is small if it has 1,500 or fewer 
employees. Census data for 2012 show that 1,341 firms provided resale 
services during that year. Of that number, all operated with fewer than 
1,000 employees. Thus, under this category and the associated small 
business size standard, the majority of these prepaid calling card 
providers can be considered small entities.
    30. Toll Resellers. The Commission has not developed a definition 
for Toll Resellers. The closest NAICS Code Category is 
Telecommunications Resellers. The Telecommunications Resellers industry 
comprises establishments engaged in purchasing access and network 
capacity from owners and operators of telecommunications networks and 
reselling wired and wireless telecommunications services (except 
satellite) to businesses and households. Establishments in this 
industry resell telecommunications; they do not operate transmission 
facilities and infrastructure. Mobile virtual network operators (MVNOs) 
are included in this industry. The SBA has developed a small business 
size standard for the category of Telecommunications Resellers. Under 
that size standard, such a business is small if it has 1,500 or fewer 
employees. Census data for 2012 show that 1,341 firms provided resale 
services during that year. Of that number, 1,341 operated with fewer 
than 1,000 employees. Thus, under this category and the associated 
small business size standard, the majority of these resellers can be 
considered small entities. According to Commission data, 881 carriers 
have reported that they are engaged in the provision of toll resale 
services. Of this total, an estimated 857 have 1,500 or fewer 
employees. Consequently, the Commission estimates that the majority of 
toll resellers are small entities.
    31. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a definition for small businesses specifically applicable to 
Other Toll Carriers. This category includes toll carriers that do not 
fall within the categories of interexchange carriers, operator service 
providers, prepaid calling card providers, satellite service carriers, 
or toll resellers. The closest applicable NAICS Code category is for 
Wired Telecommunications Carriers as defined above. Under the 
applicable SBA size standard, such a business is small if it has 1,500 
or fewer employees. Census 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 category and the associated 
small business size standard, the majority of Other Toll Carriers can 
be considered small. According to internally developed Commission data, 
284 companies reported that their primary telecommunications service 
activity was the provision of other toll carriage. Of these, an 
estimated 279 have 1,500 or fewer employees. Consequently, the 
Commission estimates that most Other Toll Carriers are small entities 
that may be affected by rules adopted pursuant to the Second Further 
Notice.
    32. Operator Service Providers (OSPs). Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
operator service providers. The appropriate size standard under SBA 
rules is for the category Wired Telecommunications Carriers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 33 carriers have reported that 
they are engaged in the provision of operator services. Of these, an 
estimated 31 have 1,500 or fewer employees and two have more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
OSPs are small entities.

[[Page 61363]]

d. Wireless Providers--Fixed and Mobile
    33. 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.
    34. The Commission's own data--available in its Universal Licensing 
System--indicate that, as of October 25, 2016, there are 280 Cellular 
licensees that will be affected by our actions today. 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 internally developed Commission data, 413 
carriers reported that they were engaged in the provision of wireless 
telephony, including cellular service, Personal Communications Service, 
and Specialized Mobile Radio 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, we estimate that the 
majority of wireless firms can be considered small.
    35. Wireless Communications Services. This service can be used for 
fixed, mobile, radiolocation, and digital audio broadcasting satellite 
uses. The Commission defined ``small business'' for the wireless 
communications services (WCS) auction as an entity with average gross 
revenues of $40 million for each of the three preceding years, and a 
``very small business'' as an entity with average gross revenues of $15 
million for each of the three preceding years. The SBA has approved 
these definitions.
    36. Wireless Telephony. Wireless telephony includes cellular, 
personal communications services, and specialized mobile radio 
telephony carriers. As noted, the SBA has developed a small business 
size standard for Wireless Telecommunications Carriers (except 
Satellite). Under the SBA small business size standard, a business is 
small if it has 1,500 or fewer employees. According to Commission data, 
413 carriers reported that they were engaged in wireless telephony. Of 
these, an estimated 261 have 1,500 or fewer employees and 152 have more 
than 1,500 employees. Therefore, a little less than one third of these 
entities can be considered small.
e. Cable Service Providers
    37. Because section 706 requires us to monitor the deployment of 
broadband using any technology, we anticipate that some broadband 
service providers may not provide telephone service. Accordingly, we 
describe below other types of firms that may provide broadband 
services, including cable companies, MDS providers, and utilities, 
among others.
    38. Cable and Other Subscription Programming. This industry 
comprises establishments primarily engaged in operating studios and 
facilities for the broadcasting of programs on a subscription or fee 
basis. The broadcast programming is typically narrowcast in nature 
(e.g. limited format, such as news, sports, education, or youth-
oriented). These establishments produce programming in their own 
facilities or acquire programming from external sources. The 
programming material is usually delivered to a third party, such as 
cable systems or direct-to-home satellite systems, for transmission to 
viewers. The SBA has established a size standard for this industry 
stating that a business in this industry is small if it has 1,500 or 
fewer employees. The 2012 Economic Census indicates that 367 firms were 
operational for that entire year. Of this total, 357 operated with less 
than 1,000 employees. Accordingly, we conclude that a substantial 
majority of firms in this industry are small under the applicable SBA 
size standard.
    39. Cable Companies and Systems (Rate Regulation). The Commission 
has developed its own small business size standards for the purpose of 
cable rate regulation. Under the Commission's rules, a ``small cable 
company'' is one serving 400,000 or fewer subscribers nationwide. 
Industry data indicate that there are currently 4,600 active cable 
systems in the United States. Of this total, all but eleven cable 
operators nationwide are small under the 400,000-subscriber size 
standard. In addition, under the Commission's rate regulation rules, a 
``small system'' is a cable system serving 15,000 or fewer subscribers. 
Current Commission records show 4,600 cable systems nationwide. Of this 
total, 3,900 cable systems have fewer than 15,000 subscribers, and 700 
systems have 15,000 or more subscribers, based on the same records. 
Thus, under this standard as well, we estimate that most cable systems 
are small entities.
    40. Cable System Operators (Telecom Act Standard). The 
Communications Act also contains a size standard for small cable system 
operators, which is ``a cable operator that, directly or through an 
affiliate, serves in the aggregate fewer than 1% of all subscribers in 
the United States and is not affiliated with any entity or entities 
whose gross annual revenues in the aggregate exceed $250,000,000.'' 
There are approximately 52,403,705 cable video subscribers in the 
United States today. Accordingly, an operator serving fewer than 
524,037 subscribers shall be deemed a small operator if its annual 
revenues, when combined with the total annual revenues of all its 
affiliates, do not exceed $250 million in the aggregate. Based on 
available data, we find that all but nine incumbent cable operators are 
small entities under this size standard. The Commission neither 
requests nor collects information on whether cable system operators are 
affiliated with entities whose gross annual revenues exceed $250 
million. Although it seems certain that some of these cable system 
operators are affiliated with entities whose gross annual revenues 
exceed $250 million, we are unable at this time to estimate with 
greater precision the number of cable system operators that would 
qualify as small cable operators under the definition in the 
Communications Act.
    41. All Other Telecommunications. ``All Other Telecommunications'' 
is defined as follows: This U.S. industry 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

[[Page 61364]]

Other Telecommunications,'' which consists of all such firms with gross 
annual receipts of $32.5 million or less. For this category, 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. Consequently, we estimate that the majority 
of All Other Telecommunications firms are small entities that might be 
affected by our action.
3. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities
    42. The FNPRMs propose changes to, and seek comment on, the 
Commission's regulatory treatment of lower capacity TDM transport 
business data services offered by price cap and certain rate-of-return 
carriers. The objective of the proposed modifications is to reduce the 
unnecessary regulatory burdens and inflexibility of BDS regulation for 
both price cap and for rate-of-return carriers, which are for the most 
part small businesses, when competition justifies reduced regulation. 
These proposed rule modifications would provide additional incentives 
for competitive entry, network investment and the migration to IP-based 
network technologies and services.
    43. Specifically, the FNPRMs propose to eliminate ex ante pricing 
regulation and tariffing requirements for price cap carriers' TDM 
transport BDS. This will eliminate reporting, recordkeeping, and other 
compliance requirements for any price cap carrier. They also seek 
comment on whether to remove ex ante pricing regulation and tariffing 
requirements of TDM transport services offered by rate-of-return 
carriers that received fixed universal service support and elect 
incentive regulation. This change would impact the reporting, 
recordkeeping, and other compliance requirements for these rate-of-
return carriers, nearly all of which are small entities.
4. Steps Taken To Minimize the Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    44. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed 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 rules 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.
    45. The rule changes proposed by the FNPRMs would reduce the 
economic impact of the Commission's rules on price cap carriers and 
rate-of-return carriers that elect incentive regulation in the 
following ways. The Second Further Notice of Proposed Rulemaking 
proposes to free price cap carriers from ex ante pricing regulation for 
their TDM transport offerings, including the requirement to tariff 
their TDM transport services. The Further Notice of Proposed Rulemaking 
seeks comment on whether the Commission should do the same for TDM 
transport offered by rate-of-return carriers that received fixed 
universal support, or if the Commission should adopt a competitive 
market test for these carriers' TDM transport services. These rule 
changes would represent alternatives to the Commission's current rules 
that would significantly minimize the economic impact of those rules on 
price cap carriers and electing rate-of-return carriers. Finally, we 
seek comment as to any additional economic burden incurred by small 
entities that may result from the rule changes proposed in the FNPRMs.
5. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules
    46. None.

II. Procedural Matters

    47. Deadlines and Filing Procedures. Pursuant to sections 1.415 and 
1.419 of the Commission's rules, 47 CFR 1.415, 1.419, interested 
parties may file comments and reply comments on or before the dates 
indicated on the first page of this document in Dockets WC 17-144, 16-
143, 05-25. Comments may be filed using the Commission's Electronic 
Comment Filing System (ECFS).
    [ssquf] Electronic Filers: Comments may be filed electronically 
using the internet by accessing the ECFS: http://apps.fcc.gov/ecfs/.
    [ssquf] Paper Filers: Parties who choose to file by paper must file 
an original and one copy of each filing. If more than one docket or 
rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number.
    Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail. All filings must be addressed to the Commission's Secretary: 
Office of the Secretary, Federal Communications Commission.
    [ssquf] All hand-delivered or messenger-delivered paper filings for 
the Commission's Secretary must be delivered to FCC Headquarters at 445 
12th St. SW, Room TW-A325, Washington, DC 20554. The filing hours are 
8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with 
rubber bands or fasteners. Any envelopes and boxes must be disposed of 
before entering the building.
    [ssquf] Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9050 Junction Drive, 
Annapolis Junction, MD 20701.
    [ssquf] U.S. Postal Service first-class, Express, and Priority mail 
must be addressed to 445 12th Street SW, Washington DC 20554.
    [ssquf] People with Disabilities: To request materials in 
accessible formats for people with disabilities (Braille, large print, 
electronic files, audio format), send an email to fcc504@fcc.gov or 
call the Consumer & Governmental Affairs Bureau at 202-418-0530 
(voice), 202-418-0432 (TTY).
    48. This proceeding shall be treated as a ``permit-but-disclose'' 
proceeding in accordance with the Commission's ex parte rules. Persons 
making ex parte presentations must file a copy of any written 
presentation or a memorandum summarizing any oral presentation within 
two business days after the presentation (unless a different deadline 
applicable to the Sunshine period applies). Persons making oral ex 
parte presentations are reminded that memoranda summarizing the 
presentation must (1) list all persons attending or otherwise 
participating in the meeting at which the ex parte presentation was 
made, and (2) summarize all data presented and arguments made during 
the presentation. If the presentation consisted in whole or in part of 
the presentation of data or arguments already reflected in the 
presenter's written comments, memoranda or other filings in the 
proceeding, the presenter may provide citations to such data or 
arguments in his or her prior comments, memoranda, or other filings 
(specifying the relevant page and/or paragraph numbers where such data 
or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with rule

[[Page 61365]]

1.1206(b). In proceedings governed by Rule 1.49(f) or for which the 
Commission has made available a method of electronic filing, written ex 
parte presentations and memoranda summarizing oral ex parte 
presentations, and all attachments thereto, must be filed through the 
electronic comment filing system available for that proceeding, and 
must be filed in their native format (e.g., .doc, .xml, .ppt, 
searchable .pdf). Participants in this proceeding should familiarize 
themselves with the Commission's ex parte rules.
    49. Paperwork Reduction Act Analysis. This document may contain 
proposed new or modified information collection requirements subject to 
the PRA. The Commission, as part of its continuing effort to reduce 
paperwork burdens, invites the general public and the Office of 
Management and Budget (OMB) to comment on the information collection 
requirements contained in this document, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. In addition, pursuant to the 
Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4), we seek specific comment on how we might further 
reduce the information collection burden for small business concerns 
with fewer than 25 employees.
    50. Initial Regulatory Flexibility Analysis. As required by the 
Regulatory Flexibility Act of 1980, as amended (RFA), the Commission 
has prepared this Initial Regulatory Flexibility Analysis (IRFA) of the 
possible significant economic impact on small entities by the policies 
and rules proposed in this Second Further Notice of Proposed Rulemaking 
and Further Notice of Proposed Rulemaking (FNPRMs). The Commission 
requests written public comments on this IRFA. Comments must be 
identified as responses to the IRFA and must be filed by the deadlines 
for comments provided on the first page of the FNPRMs. The Commission 
will send a copy of the FNPRMs, including this IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration (SBA). In 
addition, the FNPRMs and IRFA (or summaries thereof) will be published 
in the Federal Register.

III. Ordering Clauses

    51. Accordingly, it is ordered, pursuant to sections 1, 4(i), 10, 
and 201(b) of the Communication Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 160, and 201(b) that this Second Further Notice of Proposed 
Rulemaking and Further Notice of Proposed Rulemaking are adopted.
    52. It is further ordered, that the Commission's Consumer & 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Second Further Notice of Proposed Rulemaking, and Further 
Notice of Proposed Rulemaking, including the Initial Regulatory 
Flexibility Analysis, to the Chief Counsel for Advocacy of the Small 
Business Administration.

List of Subjects

47 CFR Part 61--Tariffs

    Communications common carriers, Radio, Reporting and recordkeeping 
requirements, Telegraph, Telephone.

47 CFR Part 69--Access Charges

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone.

Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer, Office of the Secretary.

Proposed Rules

    The Federal Communications Commission seeks comment on a proposal 
to amend 47 CFR parts 61 and 69, as follows:

PART 61--TARIFFS

0
1. The authority citation for part 61 continues to read as follows:

    Authority: 47 U.S.C. 151, 154(i), 154(j), 201-205, 403, unless 
otherwise noted.

0
2. Section 61.201 is amended by revising paragraph (a)(3) to read:


Sec.  61.201  Detariffing of price cap local exchange carriers.

* * * * *
    (a)(3) Transport services as defined in Sec.  69.801 of this 
chapter;
* * * * *

PART 69--ACCESS CHARGES

0
3. The authority citation for part 69 continues to read as follows:

    Authority: 47 U.S.C. 154, 201, 202, 203, 205, 218, 220, 254, 
403.

0
4. Section 69.807 paragraph (a) is revised to read as follows:


Sec.  69.807  Regulatory relief.

    (a) Price cap local exchange carrier transport and end user channel 
terminations in markets deemed competitive and in grandfathered markets 
for a price cap carrier that was granted Phase II pricing flexibility 
prior to June 2017 are granted the following regulatory relief:
    (1) Elimination of the rate structure requirements in subpart B of 
this part;
    (2) Elimination of price cap regulation; and
    (3) Elimination of tariffing requirements as specified in Sec.  
61.201 of this chapter.
* * * * *
[FR Doc. 2018-25786 Filed 11-28-18; 8:45 am]
BILLING CODE 6712-01-P



                                                 61358               Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                 sections 172(c)(3) and 182(a)(1) and 40                 October 4, 1993) and 13563 (76 FR 3821,                 Dated: November 19, 2018.
                                                 CFR 51.1115.                                            January 21, 2011);                                    Deborah Jordan,
                                                    The EPA is also proposing to approve                    • Is not an Executive Order 13771 (82              Acting Regional Administrator, Region IX.
                                                 as a revision to the California SIP the                 FR 9339, February 2, 2017) regulatory                 [FR Doc. 2018–25885 Filed 11–28–18; 8:45 am]
                                                 following portions of the 2018 SIP                      action because SIP approvals are                      BILLING CODE 6560–50–P
                                                 Update to the California State                          exempted under Executive Order 12866;
                                                 Implementation Plan, adopted by CARB
                                                                                                            • Does not impose an information
                                                 on October 25, 2018:                                                                                          FEDERAL COMMUNICATIONS
                                                                                                         collection burden under the provisions
                                                    • RFP demonstration as meeting the                                                                         COMMISSION
                                                                                                         of the Paperwork Reduction Act (44
                                                 requirements of CAA sections 172(c)(2),
                                                                                                         U.S.C. 3501 et seq.);
                                                 182(b)(1), and 182(c)(2)(B), and 40 CFR                                                                       47 CFR Parts 61 and 69
                                                 51.1110(a)(2)(ii); and                                     • Is certified as not having a
                                                                                                         significant economic impact on a                      [WC Docket Nos. 17–144, 16–143, 05–25;
                                                    • Motor vehicle emissions budgets for                                                                      FCC 18–146]
                                                 the RFP milestone years of 2020, 2023,                  substantial number of small entities
                                                 2026, 2029, and the attainment year of                  under the Regulatory Flexibility Act (5
                                                                                                                                                               Regulation of Business Data Services
                                                 2031 (see table 5, above) because they                  U.S.C. 601 et seq.);
                                                                                                                                                               for Rate-of-Return Local Exchange
                                                 are consistent with the RFP                                • Does not contain any unfunded                    Carriers; Business Data Services in an
                                                 demonstration proposed for approval                     mandate or significantly or uniquely                  Internet Protocol Environment; Special
                                                 herein and the attainment                               affect small governments, as described                Access for Price Cap Local Exchange
                                                 demonstration previously proposed for                   in the Unfunded Mandates Reform Act                   Carriers
                                                 approval and meet the other criteria in                 of 1995 (Pub. L. 104–4);
                                                                                                                                                               AGENCY:  Federal Communications
                                                 40 CFR 93.118(e).                                          • Does not have Federalism
                                                    Lastly, we are proposing to                                                                                Commission.
                                                                                                         implications as specified in Executive
                                                 conditionally approve the contingency                   Order 13132 (64 FR 43255, August 10,                  ACTION: Proposed rule.
                                                 measure element of the 2016 Ozone                       1999);                                                SUMMARY:   The Commission seeks
                                                 Plan, as modified by the 2018 SIP
                                                                                                            • Is not an economically significant               comment on proposals to eliminate ex
                                                 Update, as meeting the requirements of
                                                                                                         regulatory action based on health or                  ante pricing regulation for price cap
                                                 CAA sections 172(c)(9) and 182(c)(9)
                                                                                                         safety risks subject to Executive Order               incumbent LECs’ provision of TDM and
                                                 based on commitments by CARB and
                                                                                                         13045 (62 FR 19885, April 23, 1997);                  other transport business data services.
                                                 the District to supplement the element
                                                 through submission of a SIP revision                       • Is not a significant regulatory action           The Commission also seeks comment on
                                                                                                         subject to Executive Order 13211 (66 FR               the conditions under which ex ante
                                                 within 1 year of final conditional
                                                                                                         28355, May 22, 2001);                                 pricing regulations should be eliminated
                                                 approval action that will include a
                                                                                                                                                               for lower capacity TDM transport
                                                 revised District architectural coatings                    • Is not subject to requirements of
                                                                                                                                                               business data services offerings by rate-
                                                 rule.                                                   Section 12(d) of the National
                                                                                                                                                               of-return carriers opting in to the
                                                    The EPA is soliciting public                         Technology Transfer and Advancement
                                                                                                                                                               Commission’s new light-touch
                                                 comments on the proposed actions                        Act of 1995 (15 U.S.C. 272 note) because
                                                                                                                                                               regulatory framework. With these steps,
                                                 listed above, our rationales for the                    application of those requirements would
                                                                                                                                                               the Commission continues its ongoing
                                                 proposed actions, and any other                         be inconsistent with the Clean Air Act;
                                                                                                                                                               efforts to modernize regulations for the
                                                 pertinent matters related to the issues                 and
                                                                                                                                                               dynamic and evolving business data
                                                 discussed in this document. We will                        • Does not provide the EPA with the                services market.
                                                 accept comments from the public on                      discretionary authority to address
                                                 this proposal for the next 30 days and                                                                        DATES: Comments are due on or before
                                                                                                         disproportionate human health or                      January 14, 2019. Reply comments are
                                                 will consider comments before taking                    environmental effects with practical,
                                                 final action.                                                                                                 due on or before February 12, 2019.
                                                                                                         appropriate, and legally permissible
                                                                                                                                                               ADDRESSES: Federal Communications
                                                 VI. Statutory and Executive Order                       methods under Executive Order 12898
                                                                                                         (59 FR 7629, February 16, 1994).                      Commission, 445 12th St. SW,
                                                 Reviews                                                                                                       Washington, DC 20554.
                                                   Under the Clean Air Act, the                             In addition, the SIP is not approved
                                                                                                                                                               FOR FURTHER INFORMATION CONTACT:
                                                 Administrator is required to approve a                  to apply on any Indian reservation land
                                                                                                                                                               Justin Faulb, Wireline Competition
                                                 SIP submission that complies with the                   or in any other area where the EPA or
                                                                                                                                                               Bureau, Pricing Policy Division, at
                                                 provisions of the Act and applicable                    an Indian tribe has demonstrated that a
                                                                                                                                                               202–418–1589 or via email at
                                                 federal regulations. 42 U.S.C. 7410(k);                 tribe has jurisdiction. In those areas of
                                                                                                                                                               justin.faulb@fcc.gov.
                                                 40 CFR 52.02(a). Thus, in reviewing SIP                 Indian country, the proposed rule does
                                                                                                                                                               SUPPLEMENTARY INFORMATION: This is a
                                                 submissions, the EPA’s role is to                       not have tribal implications and will not
                                                                                                         impose substantial direct costs on tribal             summary of the Commission’s Second
                                                 approve state choices, provided that                                                                          Further Notice of Proposed Rulemaking,
                                                 they meet the criteria of the Clean Air                 governments or preempt tribal law as
                                                                                                         specified by Executive Order 13175 (65                and Further Notice of Proposed
                                                 Act. Accordingly, this proposed action                                                                        Rulemaking, released October 24, 2018.
                                                 merely proposes to approve state plans                  FR 67249, November 9, 2000).
                                                                                                                                                               A full-text copy may be obtained at the
                                                 and an air district rule as meeting                     List of Subjects in 40 CFR Part 52                    following internet address: https://
khammond on DSK30JT082PROD with PROPOSALS




                                                 federal requirements and does not                                                                             drupal7admin.fcc.gov/document/fcc-
                                                 impose additional requirements beyond                     Environmental protection, Air                       spurs-competition-rural-business-data-
                                                 those imposed by state law. For that                    pollution control, Incorporation by                   services-0.
                                                 reason, this proposed action:                           reference, Intergovernmental relations,
                                                   • Is not a ‘‘significant regulatory                   Nitrogen dioxide, Ozone, Reporting and                Background
                                                 action’’ subject to review by the Office                recordkeeping requirements, Volatile                    1. In light of the Eighth Circuit Court’s
                                                 of Management and Budget under                          organic compounds.                                    recent decision upholding the bulk of
                                                 Executive Orders 12866 (58 FR 51735,                      Authority: 42 U.S.C. 7401 et seq.                   the Commission’s price cap BDS Order,


                                            VerDate Sep<11>2014   19:18 Nov 28, 2018   Jkt 247001   PO 00000   Frm 00023   Fmt 4702   Sfmt 4702   E:\FR\FM\29NOP1.SGM   29NOP1


                                                                     Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules                                           61359

                                                 but finding that the Commission                         Thus, the Commission found that ‘‘the                    7. We propose that during this
                                                 provided insufficient notice of its                     vast majority’’ of locations featuring                transition, tariffing for these transport
                                                 decision to end ex ante pricing                         BDS demand had competitive fiber                      services will be permissive—the
                                                 regulation of TDM transport services                    within close proximity. The                           Commission will accept new tariffs and
                                                 offered by price cap carriers, we now                   Commission added that its data were                   revisions to existing tariffs for the
                                                 propose to eliminate ex ante pricing                    conservative given the limits of the 2015             affected services. Apart from the rate
                                                 regulation of price cap incumbent LECs’                 Collection, and that the data in that                 freeze noted above, carriers will no
                                                 provision of TDM transport and other                    collection are from 2013, and therefore               longer be required to comply with price
                                                 transport (i.e., non-end user channel                   necessarily understate the level of                   cap regulation for these services, and
                                                 termination) business data services and                 current competition.                                  once the rules proposed in this Second
                                                 seek comment on this proposal. We also                     4. On appeal, the Eighth Circuit Court             Further Notice are effective, carriers that
                                                 take this opportunity to seek comment                   largely affirmed the BDS Order, but                   wish to continue filing tariffs under the
                                                 on the circumstances under which we                     found the Commission did not provide                  permissive detariffing regime would be
                                                 should eliminate ex ante pricing                        adequate notice on the narrow issue of                free to modify such tariffs to reflect the
                                                 regulation of lower capacity TDM                        ending ex ante pricing regulation of                  new regulatory structure outlined in this
                                                 transport services (at or below a DS3                   TDM transport services. The court                     Second Further Notice for the affected
                                                 bandwidth) offered by those rate-of-                    vacated those portions of the BDS Order               services. We propose allowing price cap
                                                 return carriers that receive fixed high-                dealing with TDM transport and                        carriers to remove the relevant portions
                                                 cost universal service support and elect                remanded them to the Commission for                   of their tariffs for the affected services
                                                 the lighter touch regulatory framework.                 further action, which we initiate here.               at any time during the transition, and
                                                                                                            5. The current record includes ‘‘strong            for the rate freeze to no longer apply to
                                                 A. Eliminating Ex Ante Pricing                          evidence of substantial competition’’ in
                                                 Regulation of TDM Transport Services                                                                          services that are not tariffed. We
                                                                                                         price cap TDM transport markets. In                   propose that once the transition ends,
                                                 Provided by Price Cap Carriers                          addition to showing that there is                     no price cap carrier may file or maintain
                                                    2. For the better part of the last two               ‘‘widespread deployment of competitive                any interstate tariffs for affected
                                                 decades, in response to increasing                      transport networks’’ in price cap areas,              business data services. We seek
                                                 competition for TDM transport in areas                  the record also indicates that transport              comment on these proposals.
                                                 of the country served by price cap                      services are ‘‘typically higher volume
                                                 carriers, the Commission has                            services . . . which can more easily                     8. We also seek comment on our
                                                 consistently worked to modify and                       justify competitive investment and                    analysis of the TDM transport market for
                                                 streamline regulation of such services.                 deployment.’’                                         price cap carriers. To what extent does
                                                 Most TDM transport offered by price                        6. In light of the current record of               the Commission’s competitive analysis
                                                 cap carriers has been subject to some                   substantial competition and competitive               in the BDS Order continue to represent
                                                 form of pricing flexibility as a result of              pressure on TDM transport services in                 an accurate assessment of the
                                                 the Commission’s 1999 Pricing                           price cap areas, we now propose to                    competitive nature of the TDM transport
                                                 Flexibility Order. In adopting the Pricing              eliminate nationwide ex ante pricing                  market in price cap areas? Has the
                                                 Flexibility Order, the Commission                       regulation of price cap carriers’ TDM                 market for TDM transport in price cap
                                                 acknowledged that, because transport                    transport services and seek comment on                areas changed materially since the
                                                 services encompass higher capacity                      our proposal. Specifically, we propose                Commission adopted the BDS Order? Is
                                                 middle-mile segments of the network,                    granting price cap carriers forbearance               there evidence that competition for
                                                 facility-based entry was more likely to                 pursuant to section 10 of the                         TDM transport has changed in these
                                                 occur for those services than for end                   Communications Act of 1934, as                        markets since the Commission last
                                                 user channel terminations, and therefore                amended (the Act) from section 203                    analyzed this market? Are there
                                                 set lower thresholds for carriers to                    tariffing requirements for their TDM                  providers of TDM transport that were
                                                 demonstrate competition and obtain                      transport business data services and                  not identified by the 2015 Collection?
                                                 pricing flexibility. Although the                       other transport special access service                How has this growth in competition
                                                 Commission suspended further grants of                  offerings. Consistent with the transition             impacted demand for TDM transport? In
                                                 pricing flexibility in 2012, it did not                 adopted in the BDS Order for packet-                  addition to the evidence the
                                                 revoke any pricing flexibility previously               based and higher capacity TDM BDS,                    Commission previously considered in
                                                 granted.                                                we propose permissive detariffing for                 finding that there is sufficient
                                                    3. In the BDS Order, the Commission                  price cap carriers’ TDM transport                     competition to justify nationwide
                                                 evaluated the record before it and                      services for a transition period, followed            pricing relief for TDM transport offered
                                                 concluded that there was sufficient                     thereafter by mandatory detariffing of                by price cap carriers, there are
                                                 competition to justify nationwide                       these business data services. We                      indications that cable providers’ market
                                                 pricing relief for TDM transport offered                propose to end the transition period for              share of lower speed business data
                                                 by price cap carriers. The record shows,                price cap carriers’ TDM transport                     services continues to grow significantly.
                                                 for example, that some major urban                      services on the same date that the                    As a competitor, cable operators self-
                                                 areas have as many as 28 transport                      transition period mandated by the BDS                 provision all aspects of their BDS,
                                                 competitors while second-tier MSAs                      Order for price cap carriers’ other BDS               including transport functionality, and
                                                 commonly have more than a dozen                         services is scheduled to end—August 1,                rarely, if ever, collocate at incumbent
                                                 competitors. More broadly, the record                   2020—to align these transition periods                LEC end offices. This increased
khammond on DSK30JT082PROD with PROPOSALS




                                                 shows that in 2013, 92.1% of buildings                  and simplify their administration. In                 competition from cable operators is in
                                                 served with BDS demand in price cap                     addition, we propose, for six (6) months              addition to competition from other
                                                 territories were within a half mile of                  following the effective date of an order              providers. Given that cable competition
                                                 competitive fiber transport facilities.                 adopting final rules, to require price cap            does not typically rely on the TDM
                                                 Further, the record shows that 89.6% of                 carriers to freeze the tariffed rates for             transport provided by incumbent local
                                                 all price cap census blocks with BDS                    their TDM transport services, as long as              exchange carriers because they have
                                                 demand had at least one served building                 those services remain tariffed. We seek               built out their own networks, how
                                                 within a half mile of competitive fiber.                comment on these proposals.                           should we factor such competition into


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                                                 61360               Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                 a comprehensive analysis of TDM                         B. Eliminating Ex Ante Pricing                        relieve electing carriers’ lower capacity
                                                 transport competition in price cap                      Regulation of Lower Capacity TDM                      TDM transport of ex ante pricing
                                                 areas? Additionally, to what extent has                 Transport Provided by Carriers That                   regulation in a particular study area?
                                                 the increase in demand for packet-based                 Receive Fixed Universal Service Support               Were we to adopt a competitive market
                                                 business data services and the resulting                and Elect Incentive Regulation for Their              test for electing carriers’ lower capacity
                                                 decrease in demand for TDM services                     BDS Offerings                                         TDM transport, how should it be
                                                 affected competition for TDM transport?                    11. We also seek comment on                        structured? Should such a test largely
                                                                                                         providing a path to eliminating ex ante               mirror the structure of the current
                                                    9. We seek comment on whether we                                                                           electing carrier competitive market test
                                                 should consider any alternatives to                     pricing regulation of lower capacity (i.e.,
                                                                                                         at or below a DS3 bandwidth level)                    for lower capacity TDM end user
                                                 removing ex ante pricing regulation for                                                                       channel terminations?
                                                 TDM transport offered by price cap                      TDM transport services, including other
                                                                                                                                                                  14. If we adopt a competitive market
                                                 carriers to better align our regulation                 transport (i.e., non-end user channel
                                                                                                                                                               test for lower capacity TDM transport
                                                 with the dynamic and evolving nature                    termination) special access services,
                                                                                                                                                               offered by electing carriers, how should
                                                                                                         offered by rate-of-return carriers that
                                                 of the business data services market.                                                                         we implement the results of such a test?
                                                                                                         receive fixed high-cost universal service             Should we adopt similar transition
                                                 Should we, for example, adopt a
                                                                                                         support, and elect our new lighter touch              provisions as those we adopt for the
                                                 competitive market test to measure the
                                                                                                         regulatory framework (electing carriers)              competitive market test for electing
                                                 competitiveness of TDM transport                        for their BDS. In that framework,
                                                 offerings in areas served by price cap                                                                        carriers’ lower capacity TDM end user
                                                                                                         electing carriers’ lower capacity circuit-            channel terminations? Are there any
                                                 carriers? If so, how should such a test                 based BDS, including their TDM
                                                 be structured? Should such a test assess                                                                      reasons to structure the transition
                                                                                                         transport and end user channel                        differently?
                                                 competition using the counties served                   terminations, are converted to incentive                 15. In the alternative, we seek
                                                 by price cap carriers as the relevant                   regulation, and are offered subject to                comment on whether we should remove
                                                 geographic market, as we do with the                    pricing flexibility that includes contract            ex ante pricing regulations for lower
                                                 competitive market test for price cap                   tariff pricing and term and volume                    capacity TDM transport offered by
                                                 carriers’ lower capacity TDM end user                   discount plans. We also adopt a                       electing carriers nationwide. Is there
                                                 channel terminations? Alternatively,                    competitive market test for removing ex               data available that would show
                                                 should we use the same competitive                      ante pricing regulation from electing                 nationwide competition sufficient to
                                                 market test for TDM transport offerings                 carriers’ lower capacity TDM end user                 remove ex ante pricing regulation? How
                                                 of price cap carriers as we do for lower                channel terminations. However, based                  would we analyze the data given the
                                                 capacity TDM end user channel                           on the current record, we declined to                 variability of competition in areas
                                                 terminations offered by price cap                       adopt a competitive market test for                   served by electing rate-of-return
                                                 carriers? If we adopt a competitive                     electing carriers’ lower capacity TDM                 carriers? Is there evidence of
                                                 market test for TDM transport offered by                transport, nor did we eliminate all ex                competition for lower capacity TDM
                                                 price cap carriers, how should we                       ante pricing regulation for lower                     transport in these areas consistent with
                                                 implement the results of such a test?                   capacity TDM transport provided by                    the competition the Commission
                                                 Should we adopt similar transition                      electing carriers. As the Commission                  determined was present in price cap
                                                 provisions as those we adopted for the                  explained in the Notice, competition for              areas nationwide?
                                                 competitive market test for end user                    electing carriers’ lower capacity TDM                    16. We also seek comment on AT&T’s
                                                                                                         transport may not be as robust in the                 recommendation that we base our
                                                 channel terminations in the BDS Order?
                                                                                                         less dense and more rural study areas                 decisions on data specific to electing
                                                    10. We invite interested parties to                  that rate-of-return carriers typically                carriers and their operating territories.
                                                 submit any additional data or                           serve, compared to denser and more                    We recognize that a large data collection
                                                 information regarding the state of                      populated price cap study areas.                      would be a burden on rate-of-return
                                                 competition for TDM transport services                     12. The Commission has long                        carriers’ limited resources, and we want
                                                 in price cap areas. Are there more                      recognized transport is more                          to avoid imposing unnecessary
                                                 current data available on the state of                  competitive than end user channel                     regulatory burdens on them. We
                                                 competition for TDM transport services                  terminations and required a different                 therefore request that commenters
                                                 that could enhance our analysis of this                 competitive showing for reduced                       provide or identify additional data or
                                                 market? Are there any other ways of                     pricing regulation. Given that we are                 other information relevant to the status
                                                 measuring or estimating competition for                 proposing to eliminate ex ante pricing                of competition for lower capacity TDM
                                                 TDM transport in areas served by price                  regulation of TDM transport services in               transport in the study areas served by
                                                 cap carriers that have not already been                 price cap areas, we also seek further                 the rate-of-return carriers eligible to
                                                 used by the Commission? Are there                       comment on whether, and under what                    elect incentive regulation, including
                                                 other types of data that could represent                circumstances, we should remove ex                    data on transport competition and
                                                                                                         ante pricing regulation for electing                  competitive fiber deployment. Are there
                                                 a proxy for competition in the TDM
                                                                                                         carriers’ lower capacity TDM transport.               existing data collections that could be
                                                 transport market in areas served by
                                                                                                         We previously declined to remove ex                   used as a proxy for the presence of
                                                 price cap carriers? While the data in the                                                                     lower capacity TDM transport
                                                                                                         ante pricing regulation of TDM transport
                                                 2015 Collection are not as current as                                                                         competition in areas served by rate-of-
                                                                                                         services because the record lacks data
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                                                 some more recent sources, the collection                sufficient to justify such a step. We                 return carriers eligible to elect incentive
                                                 nonetheless remains the most                            invite commenters to provide or identify              regulation? For example, in the BDS
                                                 comprehensive source of data for                        data that would justify further pricing               Order, the Commission relied in part on
                                                 business data services. We will therefore               deregulation of electing carriers’ lower              competitive fiber maps, building
                                                 again make these data available to                      capacity TDM transport.                               locations, and Census data to assess
                                                 interested parties using the same                          13. If there are such data, should we              competition for TDM transport in price
                                                 procedures the Commission previously                    use that data to adopt a competitive                  cap areas. Alternatively, Petitioners
                                                 used.                                                   market test for determining whether to                submitted a study in the record of this


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                                                                     Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules                                           61361

                                                 proceeding that included certain types                  standards for small businesses that are               a single technology or a combination of
                                                 of demographic and competitive data                     used in the regulatory flexibility                    technologies. The SBA size standard for
                                                 that they contend are reasonable proxies                analysis, according to data from the                  this category classifies a business as
                                                 for lower capacity TDM transport                        SBA’s Office of Advocacy, in general a                small if it has 1,500 or fewer employees.
                                                 competition in their service areas.                     small business is an independent                      U.S. Census data for 2012 show that
                                                 Parties should comment on the                           business having fewer than 500                        there were 3,117 firms that operated that
                                                 usefulness of these proxies and whether                 employees. These types of small                       year. Of this total, 3,083 operated with
                                                 there are others that could provide a                   businesses represent 99.9% of all                     fewer than 1,000 employees.
                                                 reasonable basis for Commission action.                 businesses in the United States which                 Consequently, under this size standard
                                                                                                         translates to 28.8 million businesses.                the majority of firms in this industry can
                                                 1. Need for, and Objectives of, the                        21. Next, the type of small entity                 be considered small.
                                                 Proposed Rules                                          described as a ‘‘small organization’’ is
                                                    17. In the FNPRMs, we propose                        generally ‘‘any not-for-profit enterprise             c. Wireline Providers
                                                 changes to, and seek comment on, the                    which is independently owned and                         24. Wired Telecommunications
                                                 appropriate regulatory treatment of                     operated and is not dominant in its                   Carriers. The U.S. Census Bureau
                                                 TDM transport business data services                    field.’’ Nationwide, as of August 2016,               defines this industry as ‘‘establishments
                                                 (BDS) offerings offered by both price cap               there were approximately 356,494 small                primarily engaged in operating and/or
                                                 carriers and rate-of-return carriers that               organizations based on registration and               providing access to transmission
                                                 receive fixed universal service support                 tax data filed by nonprofits with the                 facilities and infrastructure that they
                                                 and elect incentive regulation. In the                  Internal Revenue Service (IRS).                       own and/or lease for the transmission of
                                                 FNPRMs, the Commission proposes to                         22. Finally, the small entity described            voice, data, text, sound, and video using
                                                 remove ex ante pricing regulation from                  as a ‘‘small governmental jurisdiction’’              wired communications networks.
                                                 TDM transport business data services                    is defined generally as ‘‘governments of              Transmission facilities may be based on
                                                 offered by price cap carriers and seeks                 cities, towns, townships, villages,                   a single technology or a combination of
                                                 comment on doing so for rate-of-return                  school districts, or special districts, with          technologies. Establishments in this
                                                 carriers.                                               a population of less than fifty                       industry use the wired
                                                                                                         thousand.’’ U.S. Census Bureau data                   telecommunications network facilities
                                                 a. Legal Basis                                          from the 2012 Census of Governments                   that they operate to provide a variety of
                                                    18. The legal basis for any action that              indicates that there were 90,056 local                services, such as wired telephony
                                                 may be taken pursuant to the FNPRMs                     governmental jurisdictions consisting of              services, including VoIP services, wired
                                                 is contained in sections 1, 4(i), 10, and               general purpose governments and                       (cable) audio and video programming
                                                 201(b) of the Communications Act of                     special purpose governments in the                    distribution, and wired broadband
                                                 1934, as amended, 47 U.S.C. 151, 154(i),                United States. Of this number there                   internet services. By exception,
                                                 160, and 201(b).                                        were 37,132 general purpose                           establishments providing satellite
                                                                                                         governments (county, municipal and                    television distribution services using
                                                 2. Description and Estimate of the                      town or township) with populations of                 facilities and infrastructure that they
                                                 Number of Small Entities to Which the                   less than 50,000 and 12,184 special                   operate are included in this industry.’’
                                                 Proposed Rules Will Apply                               purpose governments (independent                      The SBA has developed a small
                                                    19. The RFA directs agencies to                      school districts and special districts)               business size standard for Wired
                                                 provide a description of, and where                     with populations of less than 50,000.                 Telecommunications Carriers, which
                                                 feasible, an estimate of the number of                  The 2012 U.S. Census Bureau data for                  consists of all such companies having
                                                 small entities that may be affected by                  most types of governments in the local                1,500 or fewer employees. Census data
                                                 the proposed rules and by the rule                      government category shows that the                    for 2012 show that there were 3,117
                                                 revisions on which the FNPRMs seek                      majority of these governments have                    firms that operated that year. Of this
                                                 comment, if adopted. The RFA generally                  populations of less than 50,000. Based                total, 3,083 operated with fewer than
                                                 defines the term ‘‘small entity’’ as                    on these data we estimate that at least               1,000 employees. Thus, under this size
                                                 having the same meaning as the terms                    49,316 local government jurisdictions                 standard, the majority of firms in this
                                                 ‘‘small business,’’ ‘‘small organization,’’             fall in the category of ‘‘small                       industry can be considered small.
                                                 and ‘‘small governmental jurisdiction.’’                governmental jurisdictions.’’                            25. Incumbent Local Exchange
                                                 In addition, the term ‘‘small business’’                                                                      Carriers (Incumbent LECs). Neither the
                                                                                                         b. Broadband Internet Access Service                  Commission nor the SBA has developed
                                                 has the same meaning as the term
                                                                                                         Providers                                             a small business size standard
                                                 ‘‘small-business concern’’ under the
                                                 Small Business Act. A ‘‘small-business                     23. Internet Service Providers                     specifically for incumbent LEC services.
                                                 concern’’ is one which: (1) Is                          (Broadband). Broadband internet                       The closest applicable size standard
                                                 independently owned and operated; (2)                   service providers include wired (e.g.,                under SBA rules is for the category
                                                 is not dominant in its field of operation;              cable, DSL) and VoIP service providers                Wired Telecommunications Carriers as
                                                 and (3) satisfies any additional criteria               using their own operated wired                        defined above. Under that size standard,
                                                 established by the SBA.                                 telecommunications infrastructure fall                such a business is small if it has 1,500
                                                                                                         in the category of Wired                              or fewer employees. According to
                                                 a. Total Small Entities                                 Telecommunication Carriers. Wired                     Commission data, 3,117 firms operated
                                                    20. Small Businesses, Small                          Telecommunications Carriers are                       in that year. Of this total, 3,083 operated
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                                                 Organizations, Small Governmental                       comprised of establishments primarily                 with fewer than 1,000 employees.
                                                 Jurisdictions. Our actions, over time,                  engaged in operating and/or providing                 Consequently, the Commission
                                                 may affect small entities that are not                  access to transmission facilities and                 estimates that most providers of
                                                 easily categorized at present. We                       infrastructure that they own and/or                   incumbent local exchange service are
                                                 therefore describe here, at the outset,                 lease for the transmission of voice, data,            small businesses that may be affected by
                                                 three broad groups of small entities that               text, sound, and video using wired                    the rules and policies adopted. A total
                                                 could be directly affected herein. First,               telecommunications networks.                          of 1,307 firms reported that they were
                                                 while there are industry specific size                  Transmission facilities may be based on               incumbent local exchange service


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                                                 61362               Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                 providers. Of this total, an estimated                  NAICS Code category is Wired                          Resellers. Under that size standard, such
                                                 1,006 have 1,500 or fewer employees.                    Telecommunications Carriers as defined                a business is small if it has 1,500 or
                                                    26. Competitive Local Exchange                       above. The applicable size standard                   fewer employees. Census data for 2012
                                                 Carriers (Competitive LECs),                            under SBA rules is that such a business               show that 1,341 firms provided resale
                                                 Competitive Access Providers (CAPs),                    is small if it has 1,500 or fewer                     services during that year. Of that
                                                 Shared-Tenant Service Providers, and                    employees. U.S. Census data for 2012                  number, 1,341 operated with fewer than
                                                 Other Local Service Providers. Neither                  indicates that 3,117 firms operated                   1,000 employees. Thus, under this
                                                 the Commission nor the SBA has                          during that year. Of that number, 3,083               category and the associated small
                                                 developed a small business size                         operated with fewer than 1,000                        business size standard, the majority of
                                                 standard specifically for these service                 employees. According to internally                    these resellers can be considered small
                                                 providers. The appropriate NAICS Code                   developed Commission data, 359                        entities. According to Commission data,
                                                 category is Wired Telecommunications                    companies reported that their primary                 881 carriers have reported that they are
                                                 Carriers, as defined above. Under that                  telecommunications service activity was               engaged in the provision of toll resale
                                                 size standard, such a business is small                 the provision of interexchange services.              services. Of this total, an estimated 857
                                                 if it has 1,500 or fewer employees. U.S.                Of this total, an estimated 317 have                  have 1,500 or fewer employees.
                                                 Census data for 2012 indicate that 3,117                1,500 or fewer employees.                             Consequently, the Commission
                                                 firms operated during that year. Of that                Consequently, the Commission                          estimates that the majority of toll
                                                 number, 3,083 operated with fewer than                  estimates that the majority of IXCs are               resellers are small entities.
                                                 1,000 employees. Based on this data, the                small entities that may be affected by                   31. Other Toll Carriers. Neither the
                                                 Commission concludes that the majority                  our proposed rules.                                   Commission nor the SBA has developed
                                                 of Competitive LECS, CAPs, Shared-                         29. Local Resellers. The SBA has                   a definition for small businesses
                                                 Tenant Service Providers, and Other                     developed a small business size                       specifically applicable to Other Toll
                                                 Local Service Providers, are small                      standard for the category of                          Carriers. This category includes toll
                                                 entities. According to Commission data,                 Telecommunications Resellers. The                     carriers that do not fall within the
                                                 1,442 carriers reported that they were                  Telecommunications Resellers industry                 categories of interexchange carriers,
                                                 engaged in the provision of either                      comprises establishments engaged in                   operator service providers, prepaid
                                                 competitive local exchange services or                  purchasing access and network capacity                calling card providers, satellite service
                                                 competitive access provider services. Of                from owners and operators of                          carriers, or toll resellers. The closest
                                                 these 1,442 carriers, an estimated 1,256                telecommunications networks and                       applicable NAICS Code category is for
                                                 have 1,500 or fewer employees. In                       reselling wired and wireless                          Wired Telecommunications Carriers as
                                                 addition, 17 carriers have reported that                telecommunications services (except                   defined above. Under the applicable
                                                 they are Shared-Tenant Service                          satellite) to businesses and households.              SBA size standard, such a business is
                                                 Providers, and all 17 are estimated to                  Establishments in this industry resell                small if it has 1,500 or fewer employees.
                                                 have 1,500 or fewer employees. Also, 72                 telecommunications; they do not                       Census data for 2012 show that there
                                                 carriers have reported that they are                    operate transmission facilities and                   were 3,117 firms that operated that year.
                                                 Other Local Service Providers. Of this                  infrastructure. Mobile virtual network                Of this total, 3,083 operated with fewer
                                                 total, 70 have 1,500 or fewer employees.                operators (MVNOs) are included in this                than 1,000 employees. Thus, under this
                                                 Consequently, based on internally                       industry. Under that size standard, such              category and the associated small
                                                 researched FCC data, the Commission                     a business is small if it has 1,500 or                business size standard, the majority of
                                                 estimates that most providers of                        fewer employees. Census data for 2012                 Other Toll Carriers can be considered
                                                 competitive local exchange service,                     show that 1,341 firms provided resale                 small. According to internally
                                                 competitive access providers, Shared-                   services during that year. Of that                    developed Commission data, 284
                                                 Tenant Service Providers, and Other                     number, all operated with fewer than                  companies reported that their primary
                                                 Local Service Providers are small                       1,000 employees. Thus, under this                     telecommunications service activity was
                                                 entities.                                               category and the associated small                     the provision of other toll carriage. Of
                                                    27. We have included small                           business size standard, the majority of               these, an estimated 279 have 1,500 or
                                                 incumbent LECs in this present RFA                      these prepaid calling card providers can              fewer employees. Consequently, the
                                                 analysis. As noted above, a ‘‘small                     be considered small entities.                         Commission estimates that most Other
                                                 business’’ under the RFA is one that,                      30. Toll Resellers. The Commission                 Toll Carriers are small entities that may
                                                 inter alia, meets the pertinent small                   has not developed a definition for Toll               be affected by rules adopted pursuant to
                                                 business size standard (e.g., a telephone               Resellers. The closest NAICS Code                     the Second Further Notice.
                                                 communications business having 1,500                    Category is Telecommunications                           32. Operator Service Providers (OSPs).
                                                 or fewer employees), and ‘‘is not                       Resellers. The Telecommunications                     Neither the Commission nor the SBA
                                                 dominant in its field of operation.’’ The               Resellers industry comprises                          has developed a small business size
                                                 SBA’s Office of Advocacy contends that,                 establishments engaged in purchasing                  standard specifically for operator
                                                 for RFA purposes, small incumbent                       access and network capacity from                      service providers. The appropriate size
                                                 LECs are not dominant in their field of                 owners and operators of                               standard under SBA rules is for the
                                                 operation because any such dominance                    telecommunications networks and                       category Wired Telecommunications
                                                 is not ‘‘national’’ in scope. We have                   reselling wired and wireless                          Carriers. Under that size standard, such
                                                 therefore included small incumbent                      telecommunications services (except                   a business is small if it has 1,500 or
                                                 LECs in this RFA analysis, although we                  satellite) to businesses and households.              fewer employees. According to
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                                                 emphasize that this RFA action has no                   Establishments in this industry resell                Commission data, 33 carriers have
                                                 effect on Commission analyses and                       telecommunications; they do not                       reported that they are engaged in the
                                                 determinations in other, non-RFA                        operate transmission facilities and                   provision of operator services. Of these,
                                                 contexts.                                               infrastructure. Mobile virtual network                an estimated 31 have 1,500 or fewer
                                                    28. Interexchange Carriers (IXCs).                   operators (MVNOs) are included in this                employees and two have more than
                                                 Neither the Commission nor the SBA                      industry. The SBA has developed a                     1,500 employees. Consequently, the
                                                 has developed a definition for                          small business size standard for the                  Commission estimates that the majority
                                                 Interexchange Carriers. The closest                     category of Telecommunications                        of OSPs are small entities.


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                                                                     Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules                                          61363

                                                 d. Wireless Providers—Fixed and                         carriers. As noted, the SBA has                       serving 15,000 or fewer subscribers.
                                                 Mobile                                                  developed a small business size                       Current Commission records show 4,600
                                                    33. Wireless Telecommunications                      standard for Wireless                                 cable systems nationwide. Of this total,
                                                 Carriers (except Satellite). This industry              Telecommunications Carriers (except                   3,900 cable systems have fewer than
                                                 comprises establishments engaged in                     Satellite). Under the SBA small business              15,000 subscribers, and 700 systems
                                                 operating and maintaining switching                     size standard, a business is small if it              have 15,000 or more subscribers, based
                                                 and transmission facilities to provide                  has 1,500 or fewer employees.                         on the same records. Thus, under this
                                                 communications via the airwaves.                        According to Commission data, 413                     standard as well, we estimate that most
                                                 Establishments in this industry have                    carriers reported that they were engaged              cable systems are small entities.
                                                                                                         in wireless telephony. Of these, an                      40. Cable System Operators (Telecom
                                                 spectrum licenses and provide services
                                                                                                         estimated 261 have 1,500 or fewer                     Act Standard). The Communications
                                                 using that spectrum, such as cellular
                                                                                                         employees and 152 have more than                      Act also contains a size standard for
                                                 services, paging services, wireless
                                                                                                         1,500 employees. Therefore, a little less             small cable system operators, which is
                                                 internet access, and wireless video                                                                           ‘‘a cable operator that, directly or
                                                                                                         than one third of these entities can be
                                                 services. The appropriate size standard                                                                       through an affiliate, serves in the
                                                                                                         considered small.
                                                 under SBA rules is that such a business                                                                       aggregate fewer than 1% of all
                                                 is small if it has 1,500 or fewer                       e. Cable Service Providers                            subscribers in the United States and is
                                                 employees. For this industry, U.S.                         37. Because section 706 requires us to             not affiliated with any entity or entities
                                                 Census data for 2012 show that there                    monitor the deployment of broadband                   whose gross annual revenues in the
                                                 were 967 firms that operated for the                    using any technology, we anticipate that              aggregate exceed $250,000,000.’’ There
                                                 entire year. Of this total, 955 firms had               some broadband service providers may                  are approximately 52,403,705 cable
                                                 employment of 999 or fewer employees                    not provide telephone service.                        video subscribers in the United States
                                                 and 12 had employment of 1,000                          Accordingly, we describe below other                  today. Accordingly, an operator serving
                                                 employees or more. Thus under this                      types of firms that may provide                       fewer than 524,037 subscribers shall be
                                                 category and the associated size                        broadband services, including cable                   deemed a small operator if its annual
                                                 standard, the Commission estimates that                 companies, MDS providers, and                         revenues, when combined with the total
                                                 the majority of wireless                                utilities, among others.                              annual revenues of all its affiliates, do
                                                 telecommunications carriers (except                        38. Cable and Other Subscription                   not exceed $250 million in the
                                                 satellite) are small entities.                          Programming. This industry comprises                  aggregate. Based on available data, we
                                                    34. The Commission’s own data—                       establishments primarily engaged in                   find that all but nine incumbent cable
                                                 available in its Universal Licensing                    operating studios and facilities for the              operators are small entities under this
                                                 System—indicate that, as of October 25,                 broadcasting of programs on a                         size standard. The Commission neither
                                                 2016, there are 280 Cellular licensees                  subscription or fee basis. The broadcast              requests nor collects information on
                                                 that will be affected by our actions                    programming is typically narrowcast in                whether cable system operators are
                                                 today. The Commission does not know                     nature (e.g. limited format, such as                  affiliated with entities whose gross
                                                 how many of these licensees are small,                  news, sports, education, or youth-                    annual revenues exceed $250 million.
                                                 as the Commission does not collect that                 oriented). These establishments produce               Although it seems certain that some of
                                                 information for these types of entities.                programming in their own facilities or                these cable system operators are
                                                 Similarly, according to internally                      acquire programming from external                     affiliated with entities whose gross
                                                 developed Commission data, 413                          sources. The programming material is                  annual revenues exceed $250 million,
                                                 carriers reported that they were engaged                usually delivered to a third party, such              we are unable at this time to estimate
                                                 in the provision of wireless telephony,                 as cable systems or direct-to-home                    with greater precision the number of
                                                 including cellular service, Personal                    satellite systems, for transmission to                cable system operators that would
                                                 Communications Service, and                             viewers. The SBA has established a size               qualify as small cable operators under
                                                 Specialized Mobile Radio Telephony                      standard for this industry stating that a             the definition in the Communications
                                                 services. Of this total, an estimated 261               business in this industry is small if it              Act.
                                                 have 1,500 or fewer employees, and 152                  has 1,500 or fewer employees. The 2012                   41. All Other Telecommunications.
                                                 have more than 1,500 employees. Thus,                   Economic Census indicates that 367                    ‘‘All Other Telecommunications’’ is
                                                 using available data, we estimate that                  firms were operational for that entire                defined as follows: This U.S. industry is
                                                 the majority of wireless firms can be                   year. Of this total, 357 operated with                comprised of establishments that are
                                                 considered small.                                       less than 1,000 employees. Accordingly,               primarily engaged in providing
                                                    35. Wireless Communications                          we conclude that a substantial majority               specialized telecommunications
                                                 Services. This service can be used for                  of firms in this industry are small under             services, such as satellite tracking,
                                                 fixed, mobile, radiolocation, and digital               the applicable SBA size standard.                     communications telemetry, and radar
                                                 audio broadcasting satellite uses. The                     39. Cable Companies and Systems                    station operation. This industry also
                                                 Commission defined ‘‘small business’’                   (Rate Regulation). The Commission has                 includes establishments primarily
                                                 for the wireless communications                         developed its own small business size                 engaged in providing satellite terminal
                                                 services (WCS) auction as an entity with                standards for the purpose of cable rate               stations and associated facilities
                                                 average gross revenues of $40 million                   regulation. Under the Commission’s                    connected with one or more terrestrial
                                                 for each of the three preceding years,                  rules, a ‘‘small cable company’’ is one               systems and capable of transmitting
                                                 and a ‘‘very small business’’ as an entity              serving 400,000 or fewer subscribers                  telecommunications to, and receiving
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                                                 with average gross revenues of $15                      nationwide. Industry data indicate that               telecommunications from, satellite
                                                 million for each of the three preceding                 there are currently 4,600 active cable                systems. Establishments providing
                                                 years. The SBA has approved these                       systems in the United States. Of this                 internet services or voice over internet
                                                 definitions.                                            total, all but eleven cable operators                 protocol (VoIP) services via client-
                                                    36. Wireless Telephony. Wireless                     nationwide are small under the 400,000-               supplied telecommunications
                                                 telephony includes cellular, personal                   subscriber size standard. In addition,                connections are also included in this
                                                 communications services, and                            under the Commission’s rate regulation                industry. The SBA has developed a
                                                 specialized mobile radio telephony                      rules, a ‘‘small system’’ is a cable system           small business size standard for ‘‘All


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                                                 61364               Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                 Other Telecommunications,’’ which                       compliance and reporting requirements                 overnight U.S. Postal Service mail. All
                                                 consists of all such firms with gross                   under the rules for such small entities;              filings must be addressed to the
                                                 annual receipts of $32.5 million or less.               (3) the use of performance rather than                Commission’s Secretary: Office of the
                                                 For this category, census data for 2012                 design standards; and (4) an exemption                Secretary, Federal Communications
                                                 show that there were 1,442 firms that                   from coverage of the rule, or any part                Commission.
                                                 operated for the entire year. Of these                  thereof, for such small entities.                        D All hand-delivered or messenger-
                                                 firms, a total of 1,400 had gross annual                   45. The rule changes proposed by the               delivered paper filings for the
                                                 receipts of less than $25 million.                      FNPRMs would reduce the economic                      Commission’s Secretary must be
                                                 Consequently, we estimate that the                      impact of the Commission’s rules on                   delivered to FCC Headquarters at 445
                                                 majority of All Other                                   price cap carriers and rate-of-return                 12th St. SW, Room TW–A325,
                                                 Telecommunications firms are small                      carriers that elect incentive regulation in           Washington, DC 20554. The filing hours
                                                 entities that might be affected by our                  the following ways. The Second Further                are 8:00 a.m. to 7:00 p.m. All hand
                                                 action.                                                 Notice of Proposed Rulemaking                         deliveries must be held together with
                                                                                                         proposes to free price cap carriers from              rubber bands or fasteners. Any
                                                 3. Description of Projected Reporting,                                                                        envelopes and boxes must be disposed
                                                                                                         ex ante pricing regulation for their TDM
                                                 Recordkeeping, and Other Compliance                                                                           of before entering the building.
                                                                                                         transport offerings, including the
                                                 Requirements for Small Entities                                                                                  D Commercial overnight mail (other
                                                                                                         requirement to tariff their TDM
                                                    42. The FNPRMs propose changes to,                   transport services. The Further Notice of             than U.S. Postal Service Express Mail
                                                 and seek comment on, the                                Proposed Rulemaking seeks comment                     and Priority Mail) must be sent to 9050
                                                 Commission’s regulatory treatment of                    on whether the Commission should do                   Junction Drive, Annapolis Junction, MD
                                                 lower capacity TDM transport business                   the same for TDM transport offered by                 20701.
                                                 data services offered by price cap and                  rate-of-return carriers that received fixed              D U.S. Postal Service first-class,
                                                 certain rate-of-return carriers. The                    universal support, or if the Commission               Express, and Priority mail must be
                                                 objective of the proposed modifications                 should adopt a competitive market test                addressed to 445 12th Street SW,
                                                 is to reduce the unnecessary regulatory                 for these carriers’ TDM transport                     Washington DC 20554.
                                                 burdens and inflexibility of BDS                        services. These rule changes would                       D People with Disabilities: To request
                                                 regulation for both price cap and for                   represent alternatives to the                         materials in accessible formats for
                                                 rate-of-return carriers, which are for the              Commission’s current rules that would                 people with disabilities (Braille, large
                                                 most part small businesses, when                        significantly minimize the economic                   print, electronic files, audio format),
                                                 competition justifies reduced regulation.               impact of those rules on price cap                    send an email to fcc504@fcc.gov or call
                                                 These proposed rule modifications                       carriers and electing rate-of-return                  the Consumer & Governmental Affairs
                                                 would provide additional incentives for                 carriers. Finally, we seek comment as to              Bureau at 202–418–0530 (voice), 202–
                                                 competitive entry, network investment                   any additional economic burden                        418–0432 (TTY).
                                                 and the migration to IP-based network                                                                            48. This proceeding shall be treated as
                                                                                                         incurred by small entities that may
                                                 technologies and services.                                                                                    a ‘‘permit-but-disclose’’ proceeding in
                                                                                                         result from the rule changes proposed in
                                                    43. Specifically, the FNPRMs propose                                                                       accordance with the Commission’s ex
                                                                                                         the FNPRMs.                                           parte rules. Persons making ex parte
                                                 to eliminate ex ante pricing regulation
                                                 and tariffing requirements for price cap                5. Federal Rules That May Duplicate,                  presentations must file a copy of any
                                                 carriers’ TDM transport BDS. This will                  Overlap, or Conflict With the Proposed                written presentation or a memorandum
                                                 eliminate reporting, recordkeeping, and                 Rules                                                 summarizing any oral presentation
                                                 other compliance requirements for any                      46. None.                                          within two business days after the
                                                 price cap carrier. They also seek                                                                             presentation (unless a different deadline
                                                 comment on whether to remove ex ante                    II. Procedural Matters                                applicable to the Sunshine period
                                                 pricing regulation and tariffing                           47. Deadlines and Filing Procedures.               applies). Persons making oral ex parte
                                                 requirements of TDM transport services                  Pursuant to sections 1.415 and 1.419 of               presentations are reminded that
                                                 offered by rate-of-return carriers that                 the Commission’s rules, 47 CFR 1.415,                 memoranda summarizing the
                                                 received fixed universal service support                1.419, interested parties may file                    presentation must (1) list all persons
                                                 and elect incentive regulation. This                    comments and reply comments on or                     attending or otherwise participating in
                                                 change would impact the reporting,                      before the dates indicated on the first               the meeting at which the ex parte
                                                 recordkeeping, and other compliance                     page of this document in Dockets WC                   presentation was made, and (2)
                                                 requirements for these rate-of-return                   17–144, 16–143, 05–25. Comments may                   summarize all data presented and
                                                 carriers, nearly all of which are small                 be filed using the Commission’s                       arguments made during the
                                                 entities.                                               Electronic Comment Filing System                      presentation. If the presentation
                                                                                                         (ECFS).                                               consisted in whole or in part of the
                                                 4. Steps Taken To Minimize the
                                                                                                            D Electronic Filers: Comments may be               presentation of data or arguments
                                                 Significant Economic Impact on Small                                                                          already reflected in the presenter’s
                                                                                                         filed electronically using the internet by
                                                 Entities, and Significant Alternatives                                                                        written comments, memoranda or other
                                                                                                         accessing the ECFS: http://apps.fcc.gov/
                                                 Considered                                                                                                    filings in the proceeding, the presenter
                                                                                                         ecfs/.
                                                    44. The RFA requires an agency to                       D Paper Filers: Parties who choose to              may provide citations to such data or
                                                 describe any significant alternatives that              file by paper must file an original and               arguments in his or her prior comments,
                                                 it has considered in reaching its                       one copy of each filing. If more than one             memoranda, or other filings (specifying
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                                                 proposed approach, which may include                    docket or rulemaking number appears in                the relevant page and/or paragraph
                                                 the following four alternatives (among                  the caption of this proceeding, filers                numbers where such data or arguments
                                                 others): (1) The establishment of                       must submit two additional copies for                 can be found) in lieu of summarizing
                                                 differing compliance or reporting                       each additional docket or rulemaking                  them in the memorandum. Documents
                                                 requirements or timetables that take into               number.                                               shown or given to Commission staff
                                                 account the resources available to small                   Filings can be sent by hand or                     during ex parte meetings are deemed to
                                                 entities; (2) the clarification,                        messenger delivery, by commercial                     be written ex parte presentations and
                                                 consolidation, or simplification of                     overnight courier, or by first-class or               must be filed consistent with rule


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                                                                     Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules                                               61365

                                                 1.1206(b). In proceedings governed by                     52. It is further ordered, that the                   (2) Elimination of price cap
                                                 Rule 1.49(f) or for which the                           Commission’s Consumer &                               regulation; and
                                                 Commission has made available a                         Governmental Affairs Bureau, Reference                  (3) Elimination of tariffing
                                                 method of electronic filing, written ex                 Information Center, shall send a copy of              requirements as specified in § 61.201 of
                                                 parte presentations and memoranda                       this Second Further Notice of Proposed                this chapter.
                                                 summarizing oral ex parte                               Rulemaking, and Further Notice of                     *     *    *    *      *
                                                 presentations, and all attachments                      Proposed Rulemaking, including the                    [FR Doc. 2018–25786 Filed 11–28–18; 8:45 am]
                                                 thereto, must be filed through the                      Initial Regulatory Flexibility Analysis,              BILLING CODE 6712–01–P
                                                 electronic comment filing system                        to the Chief Counsel for Advocacy of the
                                                 available for that proceeding, and must                 Small Business Administration.
                                                 be filed in their native format (e.g., .doc,
                                                                                                         List of Subjects                                      DEPARTMENT OF VETERANS
                                                 .xml, .ppt, searchable .pdf). Participants
                                                                                                                                                               AFFAIRS
                                                 in this proceeding should familiarize                   47 CFR Part 61—Tariffs
                                                 themselves with the Commission’s ex                                                                           48 CFR Parts 801, 823, 824, 826, 836,
                                                                                                           Communications common carriers,
                                                 parte rules.                                                                                                  843, and 852
                                                   49. Paperwork Reduction Act                           Radio, Reporting and recordkeeping
                                                 Analysis. This document may contain                     requirements, Telegraph, Telephone.                   RIN 2900–AQ24
                                                 proposed new or modified information                    47 CFR Part 69—Access Charges
                                                 collection requirements subject to the                                                                        VA Acquisition Regulation:
                                                                                                           Communications common carriers,                     Environment, Energy and Water
                                                 PRA. The Commission, as part of its
                                                                                                         Reporting and recordkeeping                           Efficiency, Renewable Energy
                                                 continuing effort to reduce paperwork
                                                                                                         requirements, Telephone.                              Technologies, Occupational Safety,
                                                 burdens, invites the general public and
                                                 the Office of Management and Budget                     Federal Communications Commission.                    and Drug-Free Workplace; Protection
                                                 (OMB) to comment on the information                     Katura Jackson,                                       of Privacy and Freedom of Information;
                                                 collection requirements contained in                    Federal Register Liaison Officer, Office of the       Other Socioeconomic Programs; and
                                                 this document, as required by the                       Secretary.                                            Contract Modifications
                                                 Paperwork Reduction Act of 1995,                                                                              AGENCY:    Department of Veterans Affairs.
                                                                                                         Proposed Rules
                                                 Public Law 104–13. In addition,
                                                 pursuant to the Small Business                            The Federal Communications                          ACTION:   Proposed rule.
                                                 Paperwork Relief Act of 2002, Public                    Commission seeks comment on a
                                                                                                                                                               SUMMARY:   The Department of Veterans
                                                 Law 107–198, see 44 U.S.C. 3506(c)(4),                  proposal to amend 47 CFR parts 61 and
                                                                                                                                                               Affairs (VA) is proposing to amend and
                                                 we seek specific comment on how we                      69, as follows:
                                                                                                                                                               update its VA Acquisition Regulation
                                                 might further reduce the information                                                                          (VAAR) in phased increments to revise
                                                 collection burden for small business                    PART 61—TARIFFS
                                                                                                                                                               or remove any policy superseded by
                                                 concerns with fewer than 25 employees.                                                                        changes in the Federal Acquisition
                                                   50. Initial Regulatory Flexibility                    ■ 1. The authority citation for part 61
                                                                                                         continues to read as follows:                         Regulation (FAR), to remove procedural
                                                 Analysis. As required by the Regulatory
                                                                                                           Authority: 47 U.S.C. 151, 154(i), 154(j),           guidance that is internal to VA into the
                                                 Flexibility Act of 1980, as amended
                                                                                                         201–205, 403, unless otherwise noted.                 VA Acquisition Manual (VAAM), and to
                                                 (RFA), the Commission has prepared
                                                                                                                                                               incorporate any new agency specific
                                                 this Initial Regulatory Flexibility                     ■ 2. Section 61.201 is amended by                     regulations or policies. These changes
                                                 Analysis (IRFA) of the possible                         revising paragraph (a)(3) to read:                    seek to streamline and align the VAAR
                                                 significant economic impact on small
                                                 entities by the policies and rules                      § 61.201 Detariffing of price cap local               with the FAR and remove outdated and
                                                 proposed in this Second Further Notice                  exchange carriers.                                    duplicative requirements and reduce
                                                 of Proposed Rulemaking and Further                      *     *     *     *    *                              burden on contractors. The VAAM
                                                 Notice of Proposed Rulemaking                             (a)(3) Transport services as defined in             incorporates portions of the removed
                                                 (FNPRMs). The Commission requests                       § 69.801 of this chapter;                             VAAR as well as other internal agency
                                                 written public comments on this IRFA.                                                                         acquisition policy. VA will rewrite
                                                                                                         *     *     *     *    *
                                                 Comments must be identified as                                                                                certain parts of the VAAR and VAAM,
                                                 responses to the IRFA and must be filed                 PART 69—ACCESS CHARGES                                and as VAAR parts are rewritten, we
                                                 by the deadlines for comments provided                                                                        will publish them in the Federal
                                                                                                         ■ 3. The authority citation for part 69               Register. VA will combine related
                                                 on the first page of the FNPRMs. The
                                                                                                         continues to read as follows:                         topics, as appropriate. In particular, this
                                                 Commission will send a copy of the
                                                 FNPRMs, including this IRFA, to the                       Authority: 47 U.S.C. 154, 201, 202, 203,            rulemaking would add VAAR coverage
                                                 Chief Counsel for Advocacy of the Small                 205, 218, 220, 254, 403.                              concerning Environment, Energy and
                                                 Business Administration (SBA). In                                                                             Water Efficiency, Renewable Energy
                                                                                                         ■ 4. Section 69.807 paragraph (a) is
                                                 addition, the FNPRMs and IRFA (or                                                                             Technologies, Occupational Safety, and
                                                                                                         revised to read as follows:
                                                 summaries thereof) will be published in                                                                       Drug-Free Workplace; Other
                                                 the Federal Register.                                   § 69.807    Regulatory relief.                        Socioeconomic Programs; and Contract
                                                                                                            (a) Price cap local exchange carrier               Modifications. This rulemaking revises
                                                 III. Ordering Clauses                                   transport and end user channel                        VAAR concerning Protection of Privacy
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                                                    51. Accordingly, it is ordered,                      terminations in markets deemed                        and Freedom of Information,
                                                 pursuant to sections 1, 4(i), 10, and                   competitive and in grandfathered                      Department of Veterans Affairs
                                                 201(b) of the Communication Act of                      markets for a price cap carrier that was              Acquisition Regulation System,
                                                 1934, as amended, 47 U.S.C. 151, 154(i),                granted Phase II pricing flexibility prior            Construction and Architect-Engineer
                                                 160, and 201(b) that this Second Further                to June 2017 are granted the following                Contracts and Solicitation Provisions
                                                 Notice of Proposed Rulemaking and                       regulatory relief:                                    and Contract Clauses.
                                                 Further Notice of Proposed Rulemaking                      (1) Elimination of the rate structure              DATES: Comments must be received on
                                                 are adopted.                                            requirements in subpart B of this part;               or before January 28, 2019 to be


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Document Created: 2018-11-28 23:44:14
Document Modified: 2018-11-28 23:44:14
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments are due on or before January 14, 2019. Reply comments are due on or before February 12, 2019.
ContactJustin Faulb, Wireline Competition Bureau, Pricing Policy Division, at 202-418-1589 or via email at [email protected]
FR Citation83 FR 61358 
CFR Citation47 CFR 61
47 CFR 69
CFR AssociatedCommunications Common Carriers; Radio; Reporting and Recordkeeping Requirements; Telegraph and Telephone

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