*Pages 1--37 from Microsoft Word - 46979.doc* Federal Communications Commission FCC 05- 59 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of The Use of N11 Codes and Other Abbreviated Dialing Arrangements ) ) ) ) ) ) ) ) ) CC Docket No. 92- 105 SIXTH REPORT AND ORDER Adopted: March 10, 2005 Released: March 14, 2005 By the Commission: Chairman Powell issuing a separate statement. TABLE OF CONTENTS Paragraph I. INTRODUCTION.................................................................................................................................. 1 II. BACKGROUND.................................................................................................................................... 5 A. Pipeline Safety Initiatives ................................................................................................................ 5 B. North American Numbering Council Recommendation.................................................................. 8 C. Notice of Proposed Rulemaking ...................................................................................................... 9 III. DISCUSSION ...................................................................................................................................... 10 A. Abbreviated Dialing Arrangements ............................................................................................... 10 1. Designation of 811 as a National Abbreviated Dialing Code ................................................. 10 2. Other Abbreviated Dialing Arrangements Considered in the Notice ...................................... 15 a. Rejection of 344 as the Abbreviated Dialing Code for One Call Notification................... 15 b. Rejection of Codes Using a Leading Star or Number Sign for One Call Notification….. 18 B. Implementation Issues ................................................................................................................... 24 1. Integration of Existing One Call Center Numbers .................................................................. 24 2. Originating Switch Location ................................................................................................... 27 3. Implementation Period ............................................................................................................ 30 IV. PROCEDURAL MATTERS................................................................................................................ 36 A. Regulatory Flexibility Analysis ..................................................................................................... 36 B. Paperwork Reduction Act Analysis ............................................................................................... 37 C. Further Information........................................................................................................................ 38 1 Federal Communications Commission FCC 05- 59 3 Designation of 811 as the abbreviated dialing code for providing advanced notice of excavation activities to underground facility operators will eliminate the need for each state One Call notification system to utilize different numbers, and therefore increase the public awareness and use of One Call services. Nationwide use of 811 will serve the public interest by minimizing confusion over which number to call before engaging in excavation activities. 4. The 811 abbreviated dialing code shall be deployed ubiquitously by carriers throughout the United States for use by all telecommunications carriers, including wireline, wireless, and payphone service providers that provide access to state One Call Centers. This designation shall be effective thirty days after publication of this Order in the Federal Register. II. BACKGROUND A. Pipeline Safety Initiatives 5. In 1998, pursuant to the Transportation Equity Act for the 21st Century, the United States Department of Transportation (DOT) established the One Call notification program to enhance public safety, protect the environment, minimize risks to excavators, and prevent disruption of the nation’s vital underground public services by reducing the occurrence of damage to these underground facilities during excavation. 7 States and localities have used, as part of the One Call system, numbers that contractors or property owners call to access the local One Call Center to notify the center of their intent to excavate. 8 Upon receipt of such notice, the One Call Center transmits this information to the underground facility operators that participate in the One Call program in that area. 9 The facility operators that have underground facilities in the area of the proposed excavation site then arrange for the identification and marking of their facilities. 10 6. On December 17, 2002, President Bush signed the Pipeline Safety Act into law. 11 The Act, among other things, is designed to strengthen the federal government’s support for the One Call program by requiring the DOT, in consultation with the Commission, to “provide for the establishment of a 3- digit nationwide toll- free telephone number system to be used by State one- call notification systems.” 12 7 Transportation Equity Act for the 21st Century, Pub. L. No. 105- 178, § 6105, 112 Stat. 107 (1998). Under this program, grants are made to states to establish or improve One Call notification systems. Id. at § 6105( c). See generally Petition for Rulemaking of the United States Department of Transportation for the Allocation of a Three- Digit Telephone Number to Access Excavation Damage Prevention (One Call) Services Nationwide, CC Docket No. 92- 105, Petition for Rulemaking, at 2- 6 (filed Aug. 28, 2003) (“ DOT Petition”). 8 These numbers, as well as a national referral number that callers dial to locate the appropriate One Call number for their local area, are generally toll- free. 9 DOT Petition at 8. There are seventy One Call Centers in the United States. Id. at 4, n. 5. Their areas of geographic coverage and telephone numbers are available online at www. digsafely. com/ contactlist. htm. Id. 10 DOT Petition at 8. 11 Pipeline Safety Act, Pub. L. No. 107- 355, 116 Stat. 2985. 12 Pipeline Safety Act § 17. Although a “three- digit” nationwide toll- free number does not exist within the North American Numbering Plan (NANP), we are interpreting the statute to require an abbreviated dialing code to give the Pipeline Safety Act its intended effect. See Use of N11 Codes and Other Abbreviated Dialing Arrangements, Third Report and Order and Order on Reconsideration, CC Docket No. 92- 105, 15 FCC Rcd 16753, 16755, para. 1 (2000) (“ N11 Third Report and Order”). The NANP numbers are ten digits in length, and they are in the format NXX- NXX- XXXX, where N is any digit 2- 9 and X is any digit 0- 9. The first three digits are referred to either as NPAs or area codes. The second three digits are called central office codes. The central office code is used for (continued….) 3 Federal Communications Commission FCC 05- 59 4 7. To initiate implementation of the Pipeline Safety Act, the DOT filed a Petition for Rulemaking (“ Petition”) with the Commission on August 28, 2003, requesting the assignment of a three-digit toll- free telephone number to access One Call centers throughout the country. 13 In its Petition, the DOT specifically requested that the digits “344” (which corresponds to the word “DIG” on telephone keypads/ dials) be established as an abbreviated dialing arrangement for this purpose. 14 Alternatively, the DOT requested a substitute mnemonic three- digit number. 15 Subsequently, the DOT indicated that it supports the North American Numbering Council (NANC) ’s recommendation to use an N11 code, specifically 811, for access to state One Call Centers. 16 B. North American Numbering Council Recommendation 8. In January 2003, the NANC formed the Abbreviated Dialing for One Call Notification Issue Management Group (DIG IMG) to identify and analyze the impact of employing the various abbreviated dialing arrangements to implement the Pipeline Safety Act. 17 The DIG IMG considered three possible alternatives for a three- digit code to access One Call Centers -- N11 codes, codes using a leading star or number sign, and easily recognizable codes. 18 The DIG IMG provided these recommendations to the NANC on October 29, 2003. 19 Upon reviewing the report, the NANC concluded that the best solution, within the framework of the existing statute, would be to assign an N11 code, specifically 811, to access One Call Centers. 20 The NANC noted that “absent the statutory requirement for a three- digit code, many of [its] members would have recommended use of a single ten- digit toll- free number to implement uniform access to individual state One Call Centers.” 21 (Continued from previous page) routing and rating calls. The final four digits are called the line number. NANP numbers typically are dialed on a seven- digit (without the area code) or ten- digit basis. When an abbreviated dialing code, such as 811, is used, the abbreviated dialing code is translated into a ten- digit number. 13 DOT Petition at 2, 15. 14 Id. 15 Id. at n. 1, 15. 16 See DOT Reply at 1- 2. 17 See Letter to William Maher, Chief, Wireline Competition Bureau, from Robert C. Atkinson, Chair, North American Numbering Council, dated December 4, 2003, at 1 (“ NANC Recommendation”) (adopting the Report and Recommendation of the Abbreviated Dialing for One Call Notification Issue Management Group, dated October 29, 2003 (“ DIG IMG Report”)). The NANC is the Commission’s federal advisory committee on numbering issues. The Communications Act of 1934, as amended by the 1996 Act, gave the Commission plenary jurisdiction over the NANP within the United States. 47 U. S. C. § 251( e)( 1). In general, however, the Commission has worked cooperatively with the NANC, state commissions, and industry to manage numbering resources. 18 See DIG IMG Report. 19 See id. 20 NANC Recommendation at 1- 2; Letter to William Maher, Chief, Wireline Competition Bureau, from Robert C. Atkinson, Chair, North American Numbering Council, dated May 27, 2004 (“ NANC Letter”). The NANC indicated, however, that its preferred solution would be for Congress to amend the statute to provide for the establishment of a toll- free number rather than an abbreviated dialing code to access One Call Centers. The NANC considered the three- digit codes in the alternative. See NANC Recommendation at 1- 2; NANC Letter. 21 NANC Recommendation at 2; NANC Letter. 4 Federal Communications Commission FCC 05- 59 5 C. Notice of Proposed Rulemaking 9. On May 14, 2004, the Commission released a Notice of Proposed Rulemaking (Notice) seeking comment on various abbreviated dialing arrangements, including those considered and recommended by the NANC, that could be used by state One Call notification systems in compliance with the Pipeline Safety Act. 22 In particular, we sought comment on whether an N11 code, a code using a leading star or number sign, or another three- digit number should be assigned to comply with the Pipeline Safety Act. 23 We also sought comment on implementation issues such as the integration of existing One Call Center numbers, an appropriate implementation timeframe for each proposed abbreviated dialing arrangement, and whether we should delegate authority to the state commissions to address implementation issues. 24 Our objective in initiating this proceeding was to assess possible abbreviated dialing arrangements to use to access state One Call Centers, while at the same time, seeking to minimize any adverse impact on numbering resources. 25 In this Order, we address the comments filed in response to the Notice. 26 III. DISCUSSION A. Abbreviated Dialing Arrangements 1. Designation of 811 as a National Abbreviated Dialing Code 10. Background. In the Notice, we sought comment on whether to use an N11 code for access to One Call Centers. 27 Specifically, we sought comment on the NANC’s recommendation to assign 811 for 22 Abbreviated dialing arrangements are arrangements other than the conventional seven and ten- digit sequences that allow callers to dial fewer digits. See supra at n. 11. Use of N11 Codes and Other Abbreviated Dialing Arrangements, Notice of Proposed Rulemaking, CC Docket No. 92- 105, 19 FCC Rcd 9173 (2004) (“ Notice”). 23 See Notice, 19 FCC Rcd at 9177- 81, paras. 8- 22. 24 Id. at 9181- 83, paras. 23- 37. 25 Id. at 9174, para. 1. 26 We received twenty- nine comments and three reply comments in response to the Notice. Appendix A provides the full and abbreviated names of the parties. See Appendix A. 27 Notice, 19 FCC Rcd at 9177- 78, paras. 9- 10. N11 codes are service codes that enable callers to access special services by dialing only three digits. Thus, the network must be pre- programmed to translate the three- digit code into the appropriate seven or ten- digit dialing sequence and route the call accordingly. Because there are eight possible N11 codes (211, 311, 411, 511, 611, 711, 811, 911), N11 codes are among the scarcest of numbering resources under the Commission’s jurisdiction. To date, the Commission has assigned five N11 codes (211, 311, 511, 711, and 911). See The Use of N11 Codes and Other Abbreviated Dialing Arrangements, First Report and Order and Further Notice of Proposed Rulemaking, 12 FCC Rcd 5572 (1997) (N11 First Report and Order) (assigned 311 for non- emergency police and other governmental services); The Use of N11 Codes and Other Abbreviated Dialing Arrangements, Second Report and Order, 15 FCC Rcd 15188 (2000) (assigned 711 for telephone relay services for the hearing impaired); N11 Third Report and Order, 15 FCC Rcd at 16753 (assigned 211 for information and referral services and 511 for travel and information services); The Use of N11 Codes and Other Abbreviated Dialing Arrangements, Fourth Report and Order and Third Notice of Proposed Rulemaking, 15 FCC Rcd 17079 (2000) (assigned 911 as the national emergency number). In addition, 411, 611 and 811 are widely used by carriers, but have not been assigned by the Commission for nationwide use. See www. nanpa. com. 5 Federal Communications Commission FCC 05- 59 6 this purpose. 28 We also asked commenters to address whether we should incorporate the One Call access service into an existing N11 code, such as 311 or 511, to preserve the remaining unassigned N11 codes. 29 The NANC expressed concern that shared use could cause caller confusion, misrouted calls, and deployment delay. 30 We requested commenters that advocated shared use of an existing N11 code to propose solutions to mitigate the concerns expressed by the NANC. 31 11. The majority of commenters agree with the NANC’s recommendation that the best solution, within the framework of the existing statute, would be to assign an N11 code, specifically 811, for access to One Call Centers. 32 These commenters assert that 811 will have little impact on customer dialing patterns and is less costly to implement compared to the other alternatives. 33 Certain commenters also specifically opposed the shared use of an existing N11 code. 34 They assert that shared use of an existing N11 code could discourage consumers from calling the One Call Center and cause caller confusion, thus, reducing the effectiveness of the centers. 35 12. Discussion. In this Order, we conclude that an N11 code is the best solution, within the framework of the statute, for access to One Call Centers. Thus, consistent with the statutory mandate, we designate 811 as the national abbreviated dialing code to be used by state One Call notification systems for providing advanced notice of excavation activities to underground facility operators in compliance with the Pipeline Safety Improvement Act. 36 In so doing, we reject the other options considered by the NANC and posed in the Notice. 37 We agree with commenters that other alternatives - codes using a leading star or number sign, e. g. *344 or #344 and an Easily Recognizable Code (ERC), such as 344 - are impractical, costly to implement, and could delay the availability of a national One Call number for 28 Id. As noted above, the NANC indicated, however, that its preferred solution would be for Congress to amend the statute to provide for the establishment of a toll- free number rather than an abbreviated dialing code to access One Call Centers. The NANC considered the three- digit codes in the alternative. See supra n. 20. 29 Notice, 19 FCC Rcd at 9178, para. 10. 30 DIG IMG Report at 16. 31 Notice, 19 FCC Rcd at 9178, para. 10. 32 See AGA Comments at 2; AOPL at1; BellSouth Comments at 6; Cingular Comments at 4- 6; CTIA Comments at 1- 3; MCI Comments at 1- 3; Qwest Comments at 2- 3; SBC Comments at 1- 2; Sunoco Comments at 1; Verizon Comments at 3; SBC Reply at 1- 2; DOT Reply at 1- 2 (changing its position to support the use of an N11 code, specifically 811, rather than 344 (“ DIG”)). But see APCC at 1- 3 (requesting that payphone service providers be excluded from the mandate to assign a three- digit code to the One Call notification system.); CPUC Comments at 2- 4; City Comments at 2- 6. 33 See AGA Comments at 2; AOPL at 1; BellSouth Comments at 6; Cingular Comments at 4- 6; CTIA Comments at 1- 3; MCI Comments at 1- 3; Qwest Comments at 2- 3; SBC Comments at 1- 2; Sunoco Comments at 1; Verizon Comments at 3; SBC Reply at 1- 2. 34 See AOPL at 2; Cingular Comments at 6; City Comments at 2; CGA Comments at 2; NGA Comments at 2. But see CPUC at 5- 6 (recommending use of the 311 code as an alternative to 811); DOT Reply at 3. 35 See generally AOPL at 2; Cingular Comments at 6; City Comments at 2; CGA Comments at 2; NGA Comments at 2; Sunoco Comments at 2. 36 See Pipeline Safety Act § 17. 37 See DIG IMG Report; Notice, 19 FCC Rcd 9173. We also conclude that a ten- digit toll- free number does not comply with the Pipeline Safety Act’s mandate to use a “three- digit” telephone number. See Pipeline Safety Act § 17. 6 Federal Communications Commission FCC 05- 59 7 years. 38 Moreover, dialing arrangements in the format of *XXX or #XXX, in as much as these codes include three digits following the leading star or number sign, do not comply with the statute’s requirement to utilize a nationwide “three- digit number” to access One Call Centers. 39 We believe that 811 will have less impact on customer dialing patterns and can be implemented without the substantial cost and delay of switch development required with the other proposed alternatives. 40 We also agree with the DOT that the special nature of an N11 code makes the 811 code amenable to a public education campaign linking it to One Call Centers. 41 We reject APCC’s request to exempt payphone service providers from this requirement. 42 In contrast to the Act’s clear mandate of a nationwide toll- free three-digit code for access to One Call Centers, APCC provides no credible argument for an exemption. 43 The Act does not provide any exemptions from this requirement, and we decline to do so here. 44 13. Although we recognize that using 811 depletes the quantity of remaining N11 codes assignable for other purposes, using an N11 code to access One Call Centers will consume fewer numbering resources than certain other alternative abbreviated dialing arrangements. 45 Additionally, the use of an N11 code to access One Call services follows the existing conventions for abbreviated dialing already familiar to customers. 46 The N11 architecture is an established abbreviated dialing plan that is recognized by switch manufacturers and the public at large. 47 Most significantly, using an N11 code such as 811 satisfies the legislative mandate for a three- digit nationwide number. 48 14. We share the concerns of commenters regarding the shared use of an existing N11 code, such as 511 (which is currently used for travel and information services) or 311 (which is currently used for non- emergency police and other governmental services). 49 In this instance, due to the volume of calls 38 See supra n. 33. ERCs are Numbering Plan Areas (NPAs) or area codes designating special services, e. g., 888 for toll- free service. They are three digits in length. The second and third digits of an ERC are the same (e. g., 344). The NANPA has assigned certain area codes as ERCs. A list of all available and assigned Area Codes is found at www. nanpa. com. Although the 344 NPA has not yet been allocated, there are NPAs in which 344 is assigned as a central office code (NXX). DIG IMG Report at 8. 39 See Pipeline Safety Act § 17. 40 See supra n. 33. 41 See DOT Reply at 1- 2 42 See APCC Comments at 2- 4. 43 Id.; Pipeline Safety Act § 17 (emphasis added). 44 See Pipeline Safety Act § 17. We agree with APCC that Section 276 of the 1996 Act does not exempt payphone calls made to One Call Centers from that statute’s requirement that payphone service providers be “fairly compensated.” See 47 U. S. C. § 276( b)( 1). Therefore, coin calls made from a payphone to a One Call Center should be paid in accordance with that payphone’s established coin rate, and coinless calls made from a payphone to a One Call Center should be compensated in accordance with the Commission’s payphone compensation rules. See 47 C. F. R. §§ 64. 1300 et seq.; see also FRFA, infra, at Section D. 45 See supra n. 33. 46 Id. 47 Id. 48 See Pipeline Safety Act § 17. 49 See supra n. 35. 7 Federal Communications Commission FCC 05- 59 8 received by state One Call Centers, shared use of an existing N11 code could result in customer confusion and misrouting when dialing a shared N11 code. 50 Thus, excavators could be deterred from using the notification system, thereby reducing the effectiveness of the One Call Centers. 51 The Common Ground Alliance (CGA) estimates that the One Call Centers currently receive approximately 15 million calls annually. 52 It also estimates that 40 percent of the incidents where underground facilities are damaged were caused by those who did not call before digging. 53 CGA contends that the incoming call volume to One Call Centers over the next few years may well exceed 20 million calls. 54 Thus, integration of state One Call Centers with existing N11 systems may also increase implementation costs while adding unnecessary complexity to the One Call notification program. Further, shared use of an existing N11 code for access to state One Call Centers could also delay deployment due to the need to reach agreement with the existing users of the N11 code to be integrated and national advertising efforts to educate users on the shared use of the N11 code. For these reasons, we reject the use of an existing N11 code as opposed to the approach adopted in this Order. 2. Other Abbreviated Dialing Arrangements Considered in the Notice a. Rejection of 344 as the Abbreviated Dialing Code for One Call Notification 15. Background. In the Notice, we sought comment on the DOT’s initial proposal to establish the digits “344” or any other mnemonic three- digit dialing arrangement for access to One Call Centers. 55 We tentatively concluded that because 344 corresponds to an ERC, an abbreviated dialing code in the format of an ERC or other area code would be inconsistent with our numbering resource optimization policies by potentially rendering eight million North American Numbering Plan (NANP) telephone numbers unusable. 56 We specifically sought comment on the technical and operational issues raised by the NANC and whether there are existing measures that can address these issues. 57 We also sought comment as to the extent switch development or replacement may be needed and the impact this will have on nationwide implementation. 58 16. The majority of commenters argue that the use of an ERC for access to state One Call Centers is not a viable option to comply with the statute. 59 These commenters contend that implementation of an 50 Id. 51 Id. 52 The Common Ground Alliance is a non- profit organization formed in 1999 by DOT’s Office of Research and Special Programs Administration and industry stakeholders to identify measures to protect the underground infrastructure during excavation activity, and to promote the use of industry best practices. See DOT Petition at 11- 12.; see also www. commongroundalliance. com; CGA Comments at 2; AOPL at 2; Sunoco at 2. 53 CGA Comments at 2. 54 Id. 55 Notice, 19 FCC Rcd at 9180- 81, paras. 18- 20; DOT Petition at 2, 15. We note that, subsequently, in its reply comments filed on DOT indicated that it supports the NANC’s recommendation to use an N11 code, specifically 811, for access to state One Call Centers. DOT Reply at 1- 2. 56 Notice, 19 FCC Rcd at 9180, para. 18; see supra n. 38. 57 Notice, 19 FCC Rcd at 9181, para. 19. 58 Id. at para. 20. 59 See BellSouth at 6- 7; Bench Comments at 3- 4; CPUC Comments at 6- 7; Cingular at 5; Qwest Comments at 3; (continued….) 8 Federal Communications Commission FCC 05- 59 9 ERC would be extremely complicated and expensive because 344 is a working central office code in many area codes in the nation. 60 They also assert that using an ERC would not be in the public interest because assignment of an NPA as an abbreviated dialing code would further accelerate NANP exhaust. 61 17. Discussion. We conclude that an abbreviated dialing code in the format of an ERC or other area code would be inconsistent with our numbering resource optimization policies by rendering approximately eight million NANP telephone numbers unusable. 62 We agree with commenters that the selection of an ERC for this purpose would not be in the public interest because it would accelerate NANP exhaust. 63 Further, the establishment of 344 as an abbreviated dialing code may cause customer confusion and frustration for customers by misrouting callers to the One Call Center where 344 is a working NXX code. 64 Additionally, from a technical perspective, some switches would require either replacement or development work that could delay the capability of using the 344 code as a three- digit number for a number of years. 65 For example, Verizon comments that vendor development for the affected switches would require new technical specifications, code preparation, installation, testing, and release of generic software release prior to distribution. 66 In light of these technical and practical challenges, we do not establish 344 as the One Call abbreviated dialing code. b. Rejection of Codes Using a Leading Star or Number Sign for One Call Notification 18. Background. In the Notice, we sought comment on whether a code with a leading star or number sign, in the format of either *XXX or #XXX, should be used to access One Call Centers. 67 We sought comment on the extent to which using a code with a leading star or number sign will either promote or discourage exhaust of the NANP numbers. 68 We asked parties to discuss any existing (Continued from previous page) Verizon Comments at 4; Qwest Comments at 3- 5; Verizon Reply at 1. But see AT& T at 7- 9 (supports assigning 344 for One Call access rather than depleting a scarce and essential N11 resource); NUCA Comments at 1- 2; City Comments at 1. 60 See BellSouth at 6- 7; Bench Comments at 3- 4; CPUC Comments at 6- 7; Cingular at 5; Qwest Comments at 3; Verizon Comments at 4; Qwest Comments at 3- 5; Verizon Reply at 1. 61 Id. 62 Notice, 19 FCC Rcd at 9179, para. 15. 63 See supra n. 60. 64 See id. 65 DIG IMG Report at 11. 66 Verizon Comments at 4- 5. 67 Notice, 19 FCC Rcd at 9179- 80, paras. 14- 16. The leading star and number signs serve as network control characters to speed up connections. DIG IMG Report at 6. Vertical Service Codes (VSCs) are codes that use a leading star. Id. Specifically, VSCs are customer- dialed codes that allow customers to access features and services provided by telecommunications service providers. Services that rely on VSCs include call forwarding, automatic callback, and customer- originated trace. The number key has generally been used to stop any switch timing protocol so that the call is immediately processed and for control in telephone systems, such as voicemail. The number key is also used by Operator Services switching systems to re- originate a credit card call with the same billing information used in the proceeding call. It is also used for control in telephone systems, such as voicemail. There is no dialed equivalent to the number sign character since, unlike the star character, the number sign is not used in the dialing sequence. 68 Notice, 19 FCC Rcd at 9179, para. 14. 9 Federal Communications Commission FCC 05- 59 10 measures that can mitigate or alleviate the limitations with using a leading star or number sign. 69 We also sought comment on whether calls from wireless customers to One Call Centers should continue to be permitted because of the effort that has gone into wireless implementation of #344 (# DIG). 70 19. All commenters opposing the use of a code with a leading star or number sign cite the same reasons raised by the NANC in its report. 71 Specifically, commenters and the NANC assert that using a code with a leading star or number sign for access to One Call Centers will involve considerable customer expense and may delay implementation due to the necessary switch development and reprogramming of the systems. 72 20. While commenters are not in favor of using a code with a leading star or number sign for access to One Call Centers, most commenters support continued use of #344 (# DIG) in the wireless sector. 73 They acknowledge the efforts of wireless service providers and are concerned that discontinuing the use of #344 for wireless calls will negate such efforts. 74 For example, AT& T asserts that discontinuing the use of #344 will require a re- education process for users who have been using #344 and additional expense for the participating carriers. 75 CTIA contends that #344 provides a valuable alternative for those excavators who are already familiar with #344. 76 However, DOT opposes the continued use of #344. 77 DOT argues that it is essential that a single national number is used for access to One Call Centers because it provides a nationwide identity that will provide certainty and reliability required for maximum usage and benefits. 78 21. Discussion. We agree with commenters that the use of a code with a leading star or number sign, in the format of either *XXX or #XXX, for access to One Call Centers would be too difficult and costly to implement. 79 Most significantly, as indicated above, such a dialing arrangement does not 69 Id. at 9179- 80, para. 16. 70 Id. at 9192, para. 15. In 1999, the National Telecommunications Damage Prevention Council, concluding that there was a need for an abbreviated dialing arrangement for contacting local One Call Centers, particularly for mobile phone users, selected #344 as the abbreviated dialing arrangement. See Letter to Members of the Abbreviated Dialing for One- Call Notification Issue Management Group from Michael D. McCrary, Chair, NTDPC, dated July 18, 2003 (NTDPC Letter). See www. ntdpc. com. Since that time, some wireless carriers have begun implementation of #344. 71 See AOPL at 1; BellSouth at 7- 8; Bench Comments at 3; Cingular Comments at 6- 7; CPUC Comments at 5; CTIA Comments at 2- 3; Gainey Comments at 1; Peterson Comments at 1; Qwest Comments at 5- 6; Sunoco Comments at 1; DIG IMG Report at 6- 8. 72 See id. 73 See AOPL at 1; BellSouth at 7- 8; Cingular Comments at 6- 7; CTIA Comments at 2- 3; Gainey Comments at 1; Peterson Comments at 1; Sunoco Comments at 1; see also AT& T at 7- 8. But see DOT Reply at 3. 74 See generally AOPL at 1; BellSouth at 7- 8; Cingular Comments at 6- 7; CTIA Comments at 2- 3; Gainey Comments at 1; Peterson Comments at 1; Sunoco Comments at 1; see also AT& T at 7- 8. 75 AT& T Comments at 7- 8. 76 CTIA Comments at 2- 3. 77 DOT Reply at 3. 78 Id. 79 See supra n. 71. 10 Federal Communications Commission FCC 05- 59 11 comply with the statute’s requirement to utilize a nationwide “three- digit number” to access One Call Centers. 80 Moreover, this abbreviated dialing arrangement would not achieve the uniformity mandated by the Pipeline Safety Act since all users would not be dialing the same sequence if the code selected includes a star or number sign. 81 A single nationwide abbreviated dialing code for access to One Call Centers will provide the certainty and reliability required for maximum usage and benefits of One Call services. 82 Additionally, many telephone systems use the star and number signs for feature access. 83 Thus, reprogramming these systems may not always be feasible and will involve considerable customer expense. 84 Further, some switching systems may not be capable of processing access codes using a leading star or number sign in the dialing sequences; and the necessary switch development would delay the full implementation of the One Call functionality. 85 Based on the record before us, we conclude that *XXX and #XXX are impractical for use as the national One Call access code and we will not assign a code using a leading star or number sign for access to One Call Centers. 22. Although we recognize the efforts undertaken in the implementation of #344 by some wireless carriers, we disagree with those commenters who advocate the continued and indefinite use of #344 for access to One Call Centers. 86 We agree with DOT that a single nationwide abbreviated dialing code for access to One Call Centers will provide the certainty and reliability required for maximum usage and benefits of One Call services as intended by Congress. 87 As discussed above, the #344 abbreviated dialing arrangement does not comply with the statute’s requirement to utilize a nationwide “three- digit number” to access One Call Centers and the statutory mandate that dialing be uniform across the nation. 88 The use of different abbreviated dialing codes for access to state One Call Centers, even if such codes are made available in addition to 811, likely will result in customer confusion as the public use both wireless and wireline telephones. 89 Wireless carriers that currently use #344 shall transition to 811 pursuant to the implementation requirements discussed below. 23. We also reject CTIA’s claim that we lack the authority to prohibit wireless carriers from continuing to use #344 as an alternative to 811. 90 As indicated above, the Communications Act of 1934, as amended by the 1996 Act, gave the Commission exclusive jurisdiction over the NANP within the United States. 91 This jurisdiction over the NANP extends to administration of the NANP to ensure that numbering resources of the NANP are administered in a fair and efficient manner. The establishment of 80 See infra para. 12; Pipeline Safety Act § 17. 81 See supra n. 71; DIG IMG Report at 7- 8. 82 See id. 83 DIG IMG Report at 8. 84 Id. 85 Id. 86 See supra n. 73. 87 See DOT Reply at 3. 88 See Pipeline Safety Act § 17. 89 See DOT Reply at 3. 90 See CTIA Ex Parte at 2. 91 See supra n. 17; 47 U. S. C. § 251( e). 11 Federal Communications Commission FCC 05- 59 12 all dialing patterns is included as part of numbering administration over the NANP. 92 Thus, the Commission has the authority to prohibit the continued use of #344. 93 B. Implementation Issues 1. Integration of Existing One Call Center Numbers 24. Background. The Pipeline Safety Act expressly mandates use of a three- digit toll- free number to access State One Call Centers. 94 In the Notice, we sought comment on methods to ensure that calls to One Call Centers are toll- free. 95 We specifically sought comment on the NANC’s recommendation that each One Call Center provide a toll- free number, which can be an 8YY number or any number that is not an IntraLATA toll call from the area to be served, so that callers do not incur toll charges. 96 We also sought comment on whether the dialing sequence should be the same for all providers or whether existing abbreviated dialing sequences should be allowed to continue. 97 25. All commenters that filed comments on this issue support the integration of an abbreviated dialing arrangement into an existing One Call Center toll- free or local number. 98 They assert that this will not only save time and money invested in advertising the existing One Call Center numbers but will also ensure that such calls are toll- free. 99 26. Discussion. To ensure that calls to One Call Centers are toll- free, we conclude that One Call Centers shall provide to carriers its toll- free number, which can be an 8YY number, or any number that is not an IntraLATA 100 toll call, from the area to be served for use in implementing 811. 101 Thus, when a caller dials 811, the carriers will translate 811 into the appropriate number to reach the One Call Center. This requirement will both simplify call routing and ensure that callers do not incur toll charges, as mandated by the statute. 102 As discussed above, other existing abbreviated dialing sequences shall be discontinued, because the use of other existing abbreviated dialing sequences in addition to 811 does not 92 See also People of the State of New York & Public Service Commission of the State of New York v. Federal Communications Commission, 267 F. 3d 91, 104- 106 (2d Cir. 2001) (holding that the Federal Communications Commission had jurisdiction to promulgate a rule pertaining to local telephone dialing patterns for the City of New York under the Communications Act of 1934). 93 See id.; 47 U. S. C. § 251( e). 94 Pipeline Safety Act § 17 (emphasis added). 95 Notice, 19 FCC Rcd at 9181- 82, para. 21. 96 Id.; DIG IMG Report at 10. 97 Notice, 19 FCC Rcd at 9181- 82, para. 21. For example, currently, wireless customers may dial 611 or *611 for repair while wireline users may dial 611 for customer service. 98 AGA Comments at 2; NGA Comments at 2; CTIA Comments at 4; SBC Reply at 3- 4. 99 See AGA Comments at 2; see also NGA Comments at 2; CTIA Comments at 4; SBC Reply at 3- 4. 100 IntraLATA refers to telecommunications services that originate and terminate in the same Local Access and Transport Area (LATA). 101 See DIG IMG Report 10; AGA Comments at 2; NGA Comments at 2; CTIA Comments at 4; SBC Reply at 3- 4. 102 See Pipeline Safety Act § 17. 12 Federal Communications Commission FCC 05- 59 13 comply with the statutory mandate that dialing be uniform across the nation. 103 2. Originating Switch Location 27. Background. In establishing a framework for its evaluation of various abbreviated dialing arrangements to implement the Pipeline Safety Act, the NANC proposed that for wireline- originated calls, the originating NPA- NXX would determine the One Call Center to which the call is sent. 104 For wireless- originated calls, the NANC proposed that the originating Mobile Switch Center would determine the One Call Center to which the call is sent. 105 In the Notice, we sought comment on these proposals. 106 28. All commenters that filed comments on this issue support the NANC’s recommendation to allow carriers to use either the NPA- NXX or the originating switch to determine the appropriate One Call Center to which a call should be routed. 107 They contend that providing carriers flexibility to select which method best suits their needs will help to ensure that calls will be routed to the appropriate One Call Center. 108 29. Discussion. We direct carriers to use either the NPA- NXX or the originating switch to determine the appropriate One Call Center to which a call should be routed. For wireline- originated calls, the originating switch location or the NPA- NXX will determine the One Call Center to which the call is sent. 109 For wireless- originated calls, the originating Mobile Switch Center will determine the One Call Center to which the call is sent. 110 This approach allows all carriers the flexibility to utilize the most efficient and cost- effective method for routing calls to appropriate state One Call Center and is competitively neutral. 3. Implementation Period 30. Background. In the Notice, we sought comment on several issues relating to how much time carriers should be given to implement a new national abbreviated dialing code. 111 Specifically, we sought comment on how long the implementation period for each proposed abbreviated dialing arrangement should be. 112 We asked parties to comment on all of the steps that carriers must undertake to prepare the network for use of the three abbreviated dialing arrangements proposed in the Notice to route properly 103 See supra. paras. 22- 23. 104 DIG IMG Report at 5. 105 Id. 106 Notice, 19 FCC Rcd at 9182, para. 22. 107 See AGA Comments at 2; BellSouth Comments at 10- 11; NGA Comments at 2; CTIA Comments at 4; SBC Reply at 2- 3. 108 SBC Reply at 2- 3; see also AGA Comments at 2; BellSouth Comments at 10- 11; NGA Comments at 2; CTIA Comments at 4. 109 See DIG IMG Report at 5. 110 Id. 111 Notice, 19 FCC Rcd at 9182, para. 23. 112 Id. 13 Federal Communications Commission FCC 05- 59 14 such calls to the One Call Centers. 113 We also sought comment on what time limit should be given to carriers to vacate any existing uses, if an unassigned N11 code, such as 811, were selected to access One Call Centers. 114 Further, we specifically sought comment on the technical and operational issues that should be considered when determining the time period for implementation that would allow carriers to prepare for use of the proposed abbreviated dialing arrangement that was adopted. 115 We also sought comment on the NANC’s recommendation that we allow carriers one to two years to prepare the network to support One Call notification to existing One Call Centers. 116 Additionally, we sought comment on whether the period for implementation should be uniform or variable and based on local conditions and whether, pursuant to section 251( e), we should delegate authority to the states to establish the timeframe for implementation and how best to engage states in the implementation process. 117 32. Discussion. With regard to how much time carriers will need to implement 811, we find that, based on the record before us, two years from publication of this Order in the Federal Register is a reasonable time period for implementing 811. 118 Most commenters generally agree that two years is a sufficient period for implementing an N11 code, specifically 811, for access to One Call Centers. 119 Thus, we conclude that calls to One Call Centers using an abbreviated dialing code must use 811 as the national abbreviated dialing code for providing advanced notice of excavation activities to underground facility operators on or before two years from publication of this Order in the Federal Register. 120 We defer to the expertise of the carriers, in cooperation with the individual states, to develop and determine the most appropriate technological means of implementing 811 access to One Call services, as dictated by their particular network architectures. 33. Although the Commission has allowed the local use of unassigned N11 codes, it has recognized that this use must be discontinued on short notice. 121 Accordingly, we reject THG’s argument to allow the continued use of 811 for commercial purposes until a qualified entity applies for and 113 Id. 114 Id. 115 Id. 116 Id. at para. 24. 117 Id. at 9183, para 25. 118 See infra n. 119. 119 See AGA Comments at 3; CPUC Comments at 8; CTIA Comments at 5- 6; MCI Comments at 2; SBC Reply at 2- 4; Verizon Comments at 4; Verizon Reply at 1. Some commenters propose a one to three year timeframe (See AGA Comments at 3; Verizon Reply at 1), while others propose one or two years (See MCI Comments at 2; CPUC at 8; CTIA Comments at 5- 6; SBC Comments at 2- 4). 120 We will not, as BellSouth suggests, delay beginning the implementation clock until there has been an official request to use the designated code for One Call access. BellSouth Comments at 9- 10. The Act mandates that a nationwide toll- free three- digit code is established for access to state One Call Centers. Pipeline Safety Act § 17 (emphasis added). Thus, such requirement applies to all carriers on a nationwide basis and is not dependent upon whether there has been a request for such service. As indicated above, most commenters suggest an implementation period of no more than two years. See supra n. 119. In the event carriers need additional time to implement 811, they should seek appropriate relief. 121 See N11 First Report and Order, 12 FCC Rcd at 5597, para 41. 14 Federal Communications Commission FCC 05- 59 15 develops the capability to put the code into use for One Call access. 122 The record indicates that the 811 code, while not formally allocated by a Commission order, is being used in several jurisdictions for other purposes. For example, 811 is used in some areas to allow customers to make free repair calls and as a 911 test code. 123 Specifically, in some of its states, SBC uses 811 as a test code for 911 prior to “turning up” new 911 trunk groups. 124 SBC asserts therefore that designing a new code for testing will take some time because SBC must be able to test new 911 trunk groups to ensure they operate correctly. 125 SBC also currently uses 811 in Connecticut for its business offices. 126 Thus, in certain states, implementing the 811 solution will require time and effort. 34. APCC also notes that many independent payphone service providers currently use 811 to allow the general public to make free repair calls from payphones. 127 APCC argues that it would be costly to implement 811 because it would require payphones to be reprogrammed and a change of signage informing payphone users of the new repair code. 128 We agree with SBC that where 811 has been used by customers for other purposes, changing the use of that number will require more robust customer education . 129 Additionally, changes to phone books, methods and procedures, and systems will require significantly more time where 811 was previously used for other purposes. 130 For the foregoing reasons, we believe two years provides a reasonable transition period to clear the 811 abbreviated dialing code of any other existing uses, provide customer education, and ensure that there is no unreasonably abrupt disruption of the existing uses. 35. We recognize that states have unique knowledge that will assist in implementing the transition to the One Call Center access set forth in this Order. We therefore delegate authority to the state commissions, pursuant to section 251( e), to address the technical and operational issues associated with the implementation of 811. 131 In delegating authority to the state commissions to address the technical and operational issues, state commissions should also consider whether a carrier may need additional time to implement 811 due to such technical and/ or operational difficulties. We agree with MPSC that state commissions are in the best position to address issues associated with implementing the abbreviated dialing arrangement because many of the One Call Centers were developed by, or under the auspices of, the state commissions. 132 For example, Qwest suggests that states be involved in mediating 122 See THG Comments at 2- 4; see also NTCA Comments at 2- 3. THG offers consulting services to communications companies and other companies that use their services. THG Comments at 1. Specifically, THG’s clients are commercial entities that use N11 codes to provide information services to the public on a commercial basis. Id. We further address THG’s concerns regarding the possible economic impact of our policies adopted herein on small entities in the Final Regulatory Flexibility Analysis (FRFA). See Appendix B. 123 See APCC Comments at 3; SBC Comments at 2- 4. 124 SBC Comments at 3. 125 Id. 126 Id. 127 APCC Comments at 3. 128 Id. 129 See SBC Comments at 3. 130 Id. 131 47 U. S. C. § 251( e); see supra n. 17. 132 MPSC Comments at 5- 6. 15 Federal Communications Commission FCC 05- 59 16 issues associated with customer contention in areas where multiple call centers request service in the same geographical area and be delegated authority to assess the qualifications of One Call Centers. 133 We agree. We defer to the expertise of the states to address and resolve such issues. However, we decline to delegate authority to the state commissions, as suggested by CPUC, to establish the implementation period. 134 We agree with SBC that the statute calls for a nationwide solution and that allowing states to establish the implementation period would not meet this mandate. 135 Therefore, as discussed above, we have established a two year period for implementing 811 as the national abbreviated dialing code for access to state One Call Centers. 136 IV. PROCEDURAL MATTERS A. Regulatory Flexibility Analysis 36. As required by the Regulatory Flexibility Act of 1980, as amended (RFA), 137 an Initial Regulatory Flexibility Analysis (IRFA) was incorporated in the Notice. 138 The Commission sought written public comment on the proposals in the Notice, including comment on the IRFA. 139 The Commission has prepared a Final Regulatory Flexibility Analysis (FRFA) for this Order, set forth at Appendix B. B. Paperwork Reduction Act Analysis 37. This Order does not contain new or modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104- 13. In addition, therefore, it does not contain any new or modified “information collection burden for small businesses with fewer than 25 employees,” pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107- 198, see 44 U. S. C. 3506( c)( 4). C. Further Information 38. Alternative formats (computer diskette, large print, audio recording, and Braille) are available to persons with disabilities by contacting Brian Millin at (202) 418- 7426 voice, (202) 418- 7365 TTY, or bmillin@ fcc. gov. This Order can also be downloaded in Microsoft Word and ASCII formats at . 39. For further information, contact Regina Brown at (202) 418- 0792 in the Telecommunications Access Policy Division, Wireline Competition Bureau. 133 Qwest Comments at 9. 134 See CPUC Comments at 8. 135 SBC Comments 6- 7. 136 See supra paras. 32- 34. 137 See 5 U. S. C. § 603. The RFA, see 5 U. S. C. §§ 601- 12, has been amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), Pub. L. No. 104- 121, Title II, 110 Stat. 857 (1996). 138 Notice, 19 FCC Rcd at 9187- 9202. 139 Id. at 9187, para. 2. 16 Federal Communications Commission FCC 05- 59 17 V. ORDERING CLAUSES 40. Accordingly, IT IS ORDERED that, pursuant to the authority contained in sections 1, 4( i), 4( j), 201- 205, 214, 254, and 403 of the Communications Act of 1934, as amended, this Order IS ADOPTED. 41. IT IS FURTHER ORDERED that, pursuant to section 251( e)( 3) of the Communications Act of 1934, as amended, 47 U. S. C. § 251( e)( 3), 811 IS ASSIGNED as the national abbreviated dialing code to be used exclusively for access to Once Call Centers, effective thirty days after publication of this Order in the Federal Register. 42. IT IS FURTHER ORDERED that the Commission’s Consumer and Governmental Affairs Bureau, Reference Information Center, SHALL SEND a copy of this Order, including the Final Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration. FEDERAL COMMUNICATIONS COMMISSION Marlene H. Dortch Secretary 17 Federal Communications Commission FCC 05- 59 A- 1 APPENDIX A List of Parties Filing Comments in Response to the Notice of Proposed Rulemaking Comments 1. American Gas Association (AGA) 2. American Petroleum Institute and the Association of Oil Pipe Lines (AOPL) 3. American Public Communications Council (APCC) 4. AT& T Corp. (AT& T) 5. BellSouth Corporation (BellSouth) 6. Bench, David H. (Bench) 7. California Public Utilities Commission and the People of the State of California (CPUC) 8. Cingular Wireless LLC (Cingular) 9. City of New York ( City) 10. Common Ground Alliance (CGA) 11. Explorer Pipeline Company (Explorer) 12. Gainey, Vernon (Gainey) 13. KeySpan Energy (KeySpan) 14. MCI, Inc. (MCI) 15. Michigan Public Service Commission (MPSC) 16. National Telecommunications Cooperative Association (NTCA) 17. National Utility Contractors Association (NUCA) 18. North American Numbering Council (NANC) 19. Northeast Gas Association (NGA) 20. Peterson, Ron (Peterson) 21. Qwest Communications, Inc. (Qwest) 22. SBC Communications (SBC) 23. Sunoco Pipeline L. P. (Sunoco) 24. THG Consultants LLP (THG) 25. United States Department of Transportation (DOT) 26. Utility Notification Center of Colorado (UNCC) 27. Verizon telephone companies (Verizon) 28. Wireless Association (CTIA) 29. Wright, Stephen H. (Wright) Reply Comments 1. SBC Communications (SBC) 2. United States Department of Transportation (DOT) 3. Verizon telephone companies (Verizon) Ex Partes 1. Wireless Association (CTIA) 2. Verizon telephone companies (Verizon) 18 Federal Communications Commission FCC 05- 59 B- 1 APPENDIX B FINAL REGULATORY FLEXIBILITY ANALYSIS (REPORT AND ORDER) 1. As required by the Regulatory Flexibility Act of 1980, as amended (RFA), 1 an Initial Regulatory Flexibility Analysis (IRFA) was incorporated in the Notice of Proposed Rulemaking (Notice). 2 The Commission sought public comments on the proposals in the Notice, including comment on the IRFA. 3 The comments received are discussed below. 4 This present Final Regulatory Flexibility Analysis (FRFA) conforms to the RFA. 5 A. Need for, and Objectives of, the Proposed Rules 2. In this Order, we designate 811 as the national abbreviated dialing code to be used by state One Call notification systems for providing advanced notice of excavation activities to underground facility operators in compliance with the Pipeline Safety Improvement Act of 2002 (the “Pipeline Safety Act”). 6 This Order implements the Pipeline Safety Act, which provides for the establishment of a nationwide toll- free abbreviated dialing arrangement to be used by state One Call notification systems. 7 3. A One Call notification system is a communication system established by operators of underground facilities and/ or state governments in order to provide a means for excavators and the general public to notify facility operators in advance of their intent to engage in excavation activities. We also address various implementation issues. Specifically, we require One Call Centers 8 to notify carriers of the toll- free or local number the One Call Center uses in order to ensure that callers do not incur toll charges, as mandated by the statute. 9 We also allow carriers to use either the Numbering Plan Area (NPA) NXX or the originating switch to determine the appropriate One Call Center to which a call should be routed. 10 Further, we require the use of 811 as the national abbreviated dialing code for providing 1 See 5 U. S. C. § 603. The RFA, see 5 U. S. C. §§ 601- 612, has been amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), Pub. L. No. 104- 121, Title II, 110 Stat. 857 (1996). 2 See Use of N11 Codes and Other Abbreviated Dialing Arrangements, Notice of Proposed Rulemaking, CC Docket No. 92- 105, 19 FCC Rcd 9173, 9187 (2004) (“ Notice”). 3 The Commission received twenty- nine comments and three reply comments in response to the Notice. Appendix A provides the full and abbreviated names of the parties. See Appendix A. 4 See Order, infra para. 41. 5 See 5 U. S. C. § 604. 6 Pipeline Safety Act, Pub. L. No. 107- 355, § 17, 116 Stat. 2985, 3008. 7 Id. 8 See Order, supra n. 3. 9 See Order, supra para. 26. 10 See Order, supra para. 29. 19 Federal Communications Commission FCC 05- 59 B- 2 advanced notice of excavation activities to underground facility operators within two years after publication of this Order in the Federal Register. 11 We also delegate authority to the states, pursuant to section 251( e), to address the technical and operational issues associated with the implementation of the 811 code. 12 4. We believe that adopting a nationwide abbreviated dialing code for this purpose will enhance public safety, and strengthen homeland security by streamlining the advance notification of excavation activities. The measures adopted in this Order will reduce disruptions to underground facilities during excavation. Designating 811 as the abbreviated dialing code for providing advanced notice of excavation activities to underground facility operators will eliminate the need for each state One Call notification system to utilize different numbers, and therefore increase the public awareness and use of One Call services. Nationwide use of 811 will also serve the public interest by minimizing confusion over which number to call before engaging in excavation activities. 5. The 811 abbreviated dialing code shall be deployed ubiquitously by carriers throughout the United States for use by all telecommunications carriers, including wireline, wireless, and payphone service providers that provide access to state One Call Centers. 13 The designation of 811 for access to state One Call Centers shall be effective thirty days after publication of this Order in the Federal Register. 14 B. Summary of Significant Issues Raised by Public Comments in Response to the IRFA 6. In the IRFA, we indicated that we would consider any proposals made to minimize any significant economic impact on small entities. 15 We received no comments directly in response to the IRFA. However, NTCA and THG filed general comments regarding the possible impact of the implementation of an N11 code on small business entities. 16 Specifically, NTCA asserted that, although implementing 811 as the abbreviated dialing code for accessing the state One Call notification system will not cause its member companies any technical hardships; it will involve some costs and difficulties due to the need to modify switches. 17 While NTCA did not provide detailed information on implementation costs, NTCA contended that the burdens associated with implementation of the 811 code would have a greater impact on smaller companies with limited staffing and a smaller subscriber base. 18 11 See Order, supra paras. 32- 34. 12 See Order, supra para. 35; 47 U. S. C. § 251( e)( 1). 13 See Order, supra para. 4. 14 Id. 15 Notice, 19 FCC Rcd at 9203, para. 37. 16 See NTCA Comments; THG Comments. 17 See NTCA Comments at 1- 3. NTCA is the industry association representing rural telecommunications providers. NTCA represents more than 560 rural rate- of- return regulated telecommunications providers. All of NTCA’s members are full service incumbent local exchange carriers and many of its members provide wireless, cable, Internet, satellite and long distance services to their communities. Each member is a “rural telephone company” as defined in the Communications Act of 1934, as amended. NTCA’s members are dedicated to providing competitive modern telecommunications services and ensuring the economic future of their rural communities. NTCA Comments at n. 1. 18 Id. at 2. 20 Federal Communications Commission FCC 05- 59 B- 3 THG argued that if an unassigned N11 code is selected to access One Call Centers, then existing commercial uses of this code should continue for commercial purposes until a qualified entity applies for develops the capability to put the code into use for One Call access. 19 THG is concerned that, where an unassigned N11 code is selected for One Call access, small businesses engaged in commercial activities may be adversely affected and the public deprived of an existing service. 20 The steps taken to minimize economic impact on small entities are discussed below. 21 C. Description and Estimate of the Number of Small Entities to which the Rules Will Apply 7. The RFA directs agencies to provide a description of, and where feasible, an estimate of the number of small entities that may be affected by the rules. 22 The RFA generally defines the term “small entity” as having the same meaning as the terms “small business,” “small organization,” and “small governmental jurisdiction.” 23 In addition, the term “small business” has the same meaning as the term “small business concern” under the Small Business Act. 24 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 Small Business Administration (SBA). 25 a. Telecommunications Service Entities (i) Wireline Carriers and Service Providers 8. We have included small incumbent local exchange carriers 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.” 26 The SBA’s Office of Advocacy contends that, for RFA purposes, small incumbent local exchange carriers are not dominant in their field of operation because any such dominance is not “national” in scope. 27 We have therefore included small incumbent local exchange 19 See Order, infra para. 33; THG Comments at 2- 3. THG offers consulting services to communications companies and companies that use such services of such companies. THG Comments at 1. THG clients are commercial entities that have used N11 codes to provide information services to the public on a commercial basis. Id. 20 Id. at 4. 21 See infra paras. 40- 44. 22 5 U. S. C. § 603( b)( 3). 23 5 U. S. C. § 601( 6). 24 5 U. S. C. § 601( 3) (incorporating by reference the definition of “small- business concern” in the Small Business Act, 15 U. S. C. § 632). Pursuant to 5 U. S. C. § 601( 3), the statutory definition of a small business applies “unless an agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity for public comment, establishes one or more definitions of such term which are appropriate to the activities of the agency and publishes such definition( s) in the Federal Register.” 25 15 U. S. C. § 632. 26 Id. 27 Letter from Jere W. Glover, Chief Counsel for Advocacy, SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small Business Act contains a definition of “small- business concern,” which the RFA incorporates (continued….) 21 Federal Communications Commission FCC 05- 59 B- 4 carriers in this RFA analysis, although we emphasize that this RFA action has no effect on Commission analyses and determinations in other, non- RFA contexts. 9. Incumbent Local Exchange Carriers. Neither the Commission nor the SBA has developed a small business size standard specifically for incumbent local exchange services. 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. 28 According to Commission data, 29 1,337 carriers have reported that they are engaged in the provision of incumbent local exchange services. Of these 1,337 carriers, an estimated 1,032 have 1,500 or fewer employees and 305 have more than 1,500 employees. Consequently, the Commission estimates that most providers of incumbent local exchange service are small businesses that may be affected by our action. 10. Competitive Local Exchange Carriers, Competitive Access Providers, “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 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. 30 According to Commission data, 31 609 carriers have reported that they are engaged in the provision of either competitive access provider services or competitive local exchange carrier services. Of these 609 carriers, an estimated 458 have 1,500 or fewer employees and 151 have more than 1,500 employees. In addition, 16 carriers have reported that they are “Shared- Tenant Service Providers,” and all 16 are estimated to have 1.500 or fewer employees. In addition, 35 carriers have reported that they are “Other Local Service Providers.” Of the 35, an estimated 34 have 1,500 or fewer employees and one has more than 1,500 employees. Consequently, 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 that may be affected by our action. 11. Local Resellers. 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. 32 According to Commission data, 33 133 carriers have reported that they are engaged in the provision of local resale services. Of these, an estimated 127 have 1,500 or fewer employees and six have more than 1,500 employees. Consequently, the Commission estimates that the majority of local resellers are small entities that may be affected by our action. 12. Toll Resellers. The SBA has developed a small business size standard for the category of (Continued from previous page) into its own definition of “small business.” See 15 U. S. C. § 632( a); 5 U. S. C. § 601( 3). SBA regulations interpret “small business concern” to include the concept of dominance on a national basis. See 13 C. F. R. § 121.102( b). 28 13 C. F. R. § 121.201, NAICS code 517110. 29 FCC, Wireline Competition Bureau, Industry Analysis and Technology Division, “Trends in Telephone Service” at Table 5.3, Page 5- 5 (May 2004) (hereinafter “Trends in Telephone Service”). This source uses data that are current as of October 22, 2003. 30 13 C. F. R. § 121.201, NAICS code 517110. 31 “Trends in Telephone Service” at Table 5.3. 32 13 CFR § 121.201, NAICS code 517310. 33 “Trends in Telephone Service” at Table 5.3. 22 Federal Communications Commission FCC 05- 59 B- 5 Telecommunications Resellers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 34 According to Commission data, 35 625 carriers have reported that they are engaged in the provision of toll resale services. Of these, an estimated 590 have 1,500 or fewer employees and 35 have more than 1,500 employees. Consequently, the Commission estimates that the majority of toll resellers are small entities that may be affected by our action. 13. Payphone Service Providers. Neither the Commission nor the SBA has developed a small business size standard specifically for payphone services 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. 36 According to Commission data, 37 761 carriers have reported that they are engaged in the provision of payphone services. Of these, an estimated 757 have 1,500 or fewer employees and four have more than 1,500 employees. Consequently, the Commission estimates that the majority of payphone service providers are small entities that may be affected by our action. 14. Interexchange Carriers. Neither the Commission nor the SBA has developed a small business size standard specifically for providers of interexchange services. 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. 38 According to Commission data, 39 261 carriers have reported that they are engaged in the provision of interexchange service. Of these, an estimated 223 have 1,500 or fewer employees and 38 have more than 1,500 employees. Consequently, the Commission estimates that the majority of IXCs are small entities that may be affected by our action. 15. Operator Service Providers. 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. 40 According to Commission data, 41 23 carriers have reported that they are engaged in the provision of operator services. Of these, an estimated 22 have 1,500 or fewer employees and one has more than 1,500 employees. Consequently, the Commission estimates that the majority of OSPs are small entities that may be affected by our action. 16. Prepaid Calling Card Providers. Neither the Commission nor the SBA has developed a small business size standard specifically for prepaid calling card providers. The appropriate size standard under SBA rules is for the category Telecommunications Resellers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 42 According to Commission data, 43 37 carriers have 34 13 CFR § 121.201, NAICS code 517310. 35 “Trends in Telephone Service” at Table 5.3. 36 13 CFR § 121.201, NAICS code 517110. 37 “Trends in Telephone Service” at Table 5.3. 38 13 C. F. R. § 121.201, NAICS code 517110. 39 “Trends in Telephone Service” at Table 5.3. 40 13 C. F. R. § 121.201, NAICS code 517110. 41 “Trends in Telephone Service” at Table 5.3. 42 13 C. F. R. § 121.201, NAICS code 517310. 23 Federal Communications Commission FCC 05- 59 B- 6 reported that they are engaged in the provision of prepaid calling cards. Of these, an estimated 36 have 1,500 or fewer employees and one has more than 1,500 employees. Consequently, the Commission estimates that the majority of prepaid calling card providers are small entities that may be affected by our action. (ii) Wireless Telecommunications Service Providers 17. Wireless Service Providers. The SBA has developed a small business size standard for wireless firms within the two broad economic census categories of “Paging” 44 and “Cellular and Other Wireless Telecommunications.” 45 Under both SBA categories, a wireless business is small if it has 1,500 or fewer employees. For the census category of Paging, Census Bureau data for 1997 show that there were 1,320 firms in this category, total, that operated for the entire year. 46 Of this total, 1,303 firms had employment of 999 or fewer employees, and an additional 17 firms had employment of 1,000 employees or more. 47 Thus, under this category and associated small business size standard, the majority of firms can be considered small. For the census category Cellular and Other Wireless Telecommunications, Census Bureau data for 1997 show that there were 977 firms in this category, total, that operated for the entire year. 48 Of this total, 965 firms had employment of 999 or fewer employees, and an additional 12 firms had employment of 1,000 employees or more. 49 Thus, under this second category and size standard, the majority of firms can, again, be considered small. 18. Cellular Licensees. The SBA has developed a small business size standard for wireless firms within the broad economic census category “Cellular and Other Wireless Telecommunications.” 50 Under this SBA category, a wireless business is small if it has 1,500 or fewer employees. For the census category Cellular and Other Wireless Telecommunications firms, Census Bureau data for 1997 show that there were 977 firms in this category, total, that operated for the entire year. 51 Of this total, 965 firms had employment of 999 or fewer employees, and an additional 12 firms had employment of 1,000 employees or more. 52 Thus, under this category and size standard, the great majority of firms can be considered (Continued from previous page) 43 “Trends in Telephone Service” at Table 5.3. 44 13 C. F. R. § 121.201, NAICS code 513321. 45 13 C. F. R. § 121.201, NAICS code 513322. 46 U. S. Census Bureau, 1997 Economic Census, Subject Series: “Information,” Table 5, Employment Size of Firms Subject to Federal Income Tax: 1997, NAICS code 513321 (issued October 2000). 47 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is “Firms with 1000 employees or more.” 48 U. S. Census Bureau, 1997 Economic Census, Subject Series: “Information,” Table 5, Employment Size of Firms Subject to Federal Income Tax: 1997, NAICS code 513322 (issued October 2000). 49 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is “Firms with 1000 employees or more.” 50 13 C. F. R. § 121.201, NAICS code 513322. 51 U. S. Census Bureau, 1997 Economic Census, Subject Series: “Information,” Table 5, Employment Size of Firms Subject to Federal Income Tax: 1997, NAICS code 513322 (issued October 2000). 52 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is “Firms with 1000 employees or more.” 24 Federal Communications Commission FCC 05- 59 B- 7 small. According to the most recent Trends in Telephone Service data, 719 carriers reported that they were engaged in the provision of cellular service, Personal Communications Service, or Specialized Mobile Radio Telephony services, which are placed together in the data. 53 We have estimated that 294 of these are small, under the SBA small business size standard. 54 19. Common Carrier Paging. The SBA has developed a small business size standard for wireless firms within the broad economic census categories of “Cellular and Other Wireless Telecommunications.” 55 Under this SBA category, a wireless business is small if it has 1,500 or fewer employees. For the census category of Paging, Census Bureau data for 1997 show that there were 1,320 firms in this category, total, that operated for the entire year. 56 Of this total, 1,303 firms had employment of 999 or fewer employees, and an additional 17 firms had employment of 1,000 employees or more. 57 Thus, under this category and associated small business size standard, the great majority of firms can be considered small. In the Paging Third Report and Order, we developed a small business size standard for “small businesses” and “very small businesses” for purposes of determining their eligibility for special provisions such as bidding credits and installment payments. 58 A “small business” is an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $15 million for the preceding three years. Additionally, a “very small business” is an entity that, together with its affiliates and controlling principals, has average gross revenues that are not more than $3 million for the preceding three years. 59 The SBA has approved these small business size standards. 60 An auction of Metropolitan Economic Area licenses commenced on February 24, 2000, and closed on March 2, 2000. 61 Of the 985 licenses auctioned, 440 were sold. Fifty- seven companies claiming small business status won. According to the most recent Trends in Telephone Service, 433 carriers reported that they were engaged in the provision of paging and messaging services. 62 Of those, we estimate that 423 are small, under the 53 FCC, Wireline Competition Bureau, Industry Analysis and Technology Division, “Trends in Telephone Service” at Table 5.3, page 5- 5 (August 2003). 54 Id. 55 13 C. F. R. § 121.201, NAICS code 513322. 56 U. S. Census Bureau, 1997 Economic Census, Subject Series: “Information,” Table 5, Employment Size of Firms Subject to Federal Income Tax: 1997, NAICS code 513321 (issued October 2000). 57 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is “Firms with 1000 employees or more.” 58 Amendment of Part 90 of the Commission’s Rules to Provide for the Use of the 220- 222 MHz Band by the Private Land Mobile Radio Service, PR Docket No. 89- 552, Third Report and Order and Fifth Notice of Proposed Rulemaking, 12 FCC Rcd 10943, 11068- 70, paras. 291- 295 (1997). 59 See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, from A. Alvarez, Administrator, SBA (Dec. 2, 1998). 60 Revision of Part 22 and Part 90 of the Commission’s Rules to Facilitate Future Development of Paging Systems, Memorandum Opinion and Order on Reconsideration and Third Report and Order, 14 FCC Rcd 10030, paras. 98-107 (1999). 61 Id. at 10085, para. 98. 62 “Trends in Telephone Service” at Table 5.3. 25 Federal Communications Commission FCC 05- 59 B- 8 SBA approved small business size standard. 63 20. Wireless Communications Services. This service can be used for fixed, mobile, radiolocation, and digital audio broadcasting satellite uses. The Commission established small business size standards for the wireless communications services auction. A “small business” is an entity with average gross revenues of $40 million for each of the three preceding years, and a “very small business” is an entity with average gross revenues of $15 million for each of the three preceding years. The SBA has approved these small business size standards. 64 The Commission auctioned geographic area licenses in the wireless communications services. In the auction, there were seven winning bidders that qualified as “very small business” entities, and one that qualified as a “small business” entity. 21. Wireless Telephony. Wireless telephony includes cellular, personal communications services, and specialized mobile radio telephony carriers. As noted earlier, the SBA has developed a small business size standard for “Cellular and Other Wireless Telecommunications” services. 65 Under that SBA small business size standard, a business is small if it has 1,500 or fewer employees. 66 According to the most recent Trends in Telephone Service data, 719 carriers reported that they were engaged in the provision of wireless telephony. 67 We have estimated that 294 of these are small under the SBA small business size standard. 22. Broadband Personal Communications Service. The broadband Personal Communications Service (PCS) spectrum is divided into six frequency blocks designated A through F, and the Commission has held auctions for each block. The Commission defined “small entity” for Blocks C and F as an entity that has average gross revenues of $40 million or less in the three previous calendar years. 68 For Block F, an additional classification for “very small business” was added and is defined as an entity that, together with its affiliates, has average gross revenues of not more than $15 million for the preceding three calendar years.” 69 These standards defining “small entity” in the context of broadband PCS auctions have been approved by the SBA. 70 No small businesses, within the SBA- approved small business size standards bid successfully for licenses in Blocks A and B. There were 90 winning bidders that qualified as small entities in the Block C auctions. A total of 93 small and very small business bidders won 63 Id. 64 See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, from A. Alvarez, Administrator, Small Business Administration (December 2, 1998). 65 13 C. F. R. § 121.201, NAICS code 513322. 66 Id. 67 “Trends in Telephone Service” at Table 5.3. 68 See Amendment of Parts 20 and 24 of the Commission’s Rules – Broadband PCS Competitive Bidding and the Commercial Mobile Radio Service Spectrum Cap, WT Docket No. 96- 59, Report and Order, 11 FCC Rcd 7824 (1996); see also 47 C. F. R. § 24. 720( b). 69 See Amendment of Parts 20 and 24 of the Commission’s Rules – Broadband PCS Competitive Bidding and the Commercial Mobile Radio Service Spectrum Cap, WT Docket No. 96- 59, Report and Order, 11 FCC Rcd 7824 (1996). 70 See. e. g., Implementation of Section 309( j) of the Communications Act – Competitive Bidding, PP Docket No. 93- 253, Fifth Report and Order, 9 FCC Rcd 5332 (1994). 26 Federal Communications Commission FCC 05- 59 B- 9 approximately 40 percent of the 1,479 licenses for Blocks D, E, and F. 71 On March 23, 1999, the Commission re- auctioned 347 C, D, E, and F Block licenses. There were 48 small business winning bidders. On January 26, 2001, the Commission completed the auction of 422 C and F Broadband PCS licenses in Auction No. 35. Of the 35 winning bidders in this auction, 29 qualified as “small” or “very small” businesses. Subsequent events, concerning Auction 35, including judicial and agency determinations, resulted in a total of 163 C and F Block licenses being available for grant. In addition, we note that, as a general matter, the number of winning bidders that qualify as small businesses at the close of an auction does not necessarily represent the number of small businesses currently in service. Also, the Commission does not generally track subsequent business size unless, in the context of assignments or transfers, unjust enrichment issues are implicated. 23. Narrowband Personal Communications Services. To date, two auctions of narrowband PCS licenses have been conducted. For purposes of the two auctions that have already been held, “small businesses” were entities with average gross revenues for the prior three calendar years of $40 million or less. Through these auctions, the Commission has awarded a total of 41 licenses, out of which 11 were obtained by small businesses. To ensure meaningful participation of small business entities in future auctions, the Commission has adopted a two- tiered small business size standard in the Narrowband PCS Second Report and Order. 72 A “small business” is an entity that, together with affiliates and controlling interests, has average gross revenues for the three preceding years of not more than $40 million. A “very small business” is an entity that, together with affiliates and controlling interests, has average gross revenues for the three preceding years of not more than $15 million. The SBA has approved these small business size standards. 73 In the future, the Commission will auction 459 licenses to serve Metropolitan Trading Areas and 408 response channel licenses. There is also one megahertz of narrowband PCS spectrum that has been held in reserve and that the Commission has not yet decided to release for licensing. The Commission cannot predict accurately the number of licenses that will be awarded to small entities in future actions. However, four of the 16 winning bidders in the two previous narrowband PCS auctions were small businesses, as that term was defined. The Commission assumes, for purposes of this analysis, that a large portion of the remaining narrowband PCS licenses will be awarded to small entities. The Commission also assumes that at least some small businesses will acquire narrowband PCS licenses by means of the Commission’s partitioning and disaggregation rules. 24. 220 MHz Radio Service – Phase I Licensees. The 220 MHz service has both Phase I and Phase II licenses. Phase I licensing was conducted by lotteries in 1992 and 1993. There are approximately 1,515 such non- nationwide licensees and four nationwide licensees currently authorized to operate in the 220 MHz band. The Commission has not developed a small business size standard for small entities specifically applicable to such incumbent 220 MHz Phase I licensees. To estimate the number of such licensees that are small businesses, we apply the small business size standard under the SBA rules applicable to “Cellular and Other Wireless Telecommunications” companies. This category 71 FCC News, Broadband PCS, D, E and F Block Auction Closes, No. 71744 (released January 14, 1997). See also Amendment of the Commission’s Rules Regarding Installment Payment Financing for Personal Communications Services (PCS) Licenses, WT Docket No. 97- 82, Second Report and Order, 12 FCC Rcd 16436 (1997). 72 Amendment of the Commission’s Rules to Establish New Personal Communications Services, Narrowband PCS, Docket No. ET 92- 100, Docket No. PP 93- 253, Second Report and Order and Second Further Notice of Proposed Rulemaking, 15 FCC Rcd 10456 (2000). 73 See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, from A. Alvarez, Administrator, Small Business Administration (December 2, 1998). 27 Federal Communications Commission FCC 05- 59 B- 10 provides that a small business is a wireless company employing no more than 1,500 persons. 74 According to the Census Bureau data for 1997, only 12 wireless firms out of a total of 1,238 such firms that operated for the entire year, had 1,000 or more employees. 75 If this general ratio continues in the context of Phase I 220 MHz licensees, the Commission estimates that nearly all such licensees are small businesses under the SBA’s small business size standard. 25. 220 MHz Radio Service – Phase II Licensees. The 220 MHz service has both Phase I and Phase II licenses. The Phase II 220 MHz service is a new service, and is subject to spectrum auctions. In the 220 MHz Third Report and Order, we adopted a small business size standard for “small” and “very small” businesses for purposes of determining their eligibility for special provisions such as bidding credits and installment payments. 76 This small business size standard indicates that a “small business” is an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $15 million for the preceding three years. 77 A “very small business” is an entity that, together with its affiliates and controlling principals, has average gross revenues that do not exceed $3 million for the preceding three years. The SBA has approved these small business size standards. 78 Auctions of Phase II licenses commenced on September 15, 1998, and closed on October 22, 1998. 79 In the first auction, 908 licenses were auctioned in three different- sized geographic areas: three nationwide licenses, 30 Regional Economic Area Group Licenses, and 875 Economic Area Licenses. Of the 908 licenses auctioned, 693 were sold. 80 Thirty- nine small businesses won licenses in the first 220 MHz auction. The second auction included 225 licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies claiming small business status won 158 licenses. 81 26. 800 MHz and 900 MHz Specialized Mobile Radio Licenses. The Commission awards “small entity” and “very small entity” bidding credits in auctions for Specialized Mobile Radio (SMR) geographic area licenses in the 800 MHz and 900 MHz bands to firms that had revenues of no more than $15 million in each of the three previous calendar years, or that had revenues of no more than $3 million in each of the previous calendar years, respectively. 82 These bidding credits apply to SMR providers in the 800 MHz and 900 MHz bands that either hold geographic area licenses or have obtained extended implementation authorizations. The Commission does not know how many firms provide 800 MHz or 900 MHz geographic area SMR service pursuant to extended implementation authorizations, nor how many of these providers have annual revenues of no more than $15 million. One firm has over $15 74 13 CFR § 121.201, NAICS code 513322. 75 U. S. Census Bureau, 1997 Economic Census, Subject Series: Information, “Establishment and Firm Size (Including Legal Form of Organization), Table 5, NAICS code 513322 (issued October 2000).” 76 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068- 70, paras. 291- 295 (1997). 77 Id. at 11068- 70, para. 291. 78 See letter to D. Phythyon, Chief, Wireless Telecommunications Bureau, Federal Communications Commission, from A. Alvarez, Administrator, Small Business Administration (January 6, 1998). 79 See generally Public Notice, “220 MHz Service Auction Closes,” Public Notice, 14 FCC Rcd 605 (1998). 80 See, e. g., Public Notice, “FCC Announces It is Prepared to Grant 654 Phase II 220 MHz Licenses After Final Payment is Made,” 14 FCC Rcd 1085 (1999). 81 Public Notice, “Phase II 220 MHz Service Spectrum Auction Closes,” 14 FCC Rcd 11218 (1999). 82 47 CFR § 90. 814( b)( 1). 28 Federal Communications Commission FCC 05- 59 B- 11 million in revenues. The Commission assumes, for purposes here, that all of the remaining existing extended implementation authorizations are held by small entities, as that term is defined by the SBA. The Commission has held auctions for geographic area licenses in the 800 MHz and 900 MHz SMR bands. There were 60 winning bidders that qualified as small or very small entities in the 900 MHz SMR auctions. Of the 1,020 licenses won in the 900 MHz auction, bidders qualifying as small or very small entities won 263 licenses. In the 800 MHz auction, 38 of the 524 licenses won were won by small and very small entities. Consequently, the Commission estimates that there are 301 or fewer small entity SMR licensees in the 800 MHz and 900 MHz bands that may be affected by the rules and policies adopted herein. 27. 700 MHz Guard Band Licensees. In the 700 MHz Guard Band Order, we adopted a small business size standard for “small businesses” and “very small businesses” for purposes of determining their eligibility for special provisions such as bidding credits and installment payments. 83 A “small business” as an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $15 million for the preceding three years. Additionally, a “very small business” is an entity that, together with its affiliates and controlling principals, has average gross revenues that are not more than $3 million for the preceding three years. An auction of 52 Major Economic Area licenses commenced on September 6, 2000, and closed on September 21, 2000. 84 Of the 104 licenses auctioned, 96 licenses were sold to nine bidders. Five of these bidders were small businesses that won a total of 26 licenses. A second auction of 700 MHz Guard Band licenses commenced on February 13, 2001 and closed on February 21, 2001. All eight of the licenses auctioned were sold to three bidders. One of these bidders was a small business that won a total of two licenses. 85 28. Rural Radiotelephone Service. The Commission has not adopted a size standard for small businesses specific to the Rural Radiotelephone Service. 86 A significant subset of the Rural Radiotelephone Service is the Basic Exchange Telephone Radio System. 87 The Commission uses the SBA’s small business size standard applicable to “Cellular and Other Wireless Telecommunications,” i. e., an entity employing no more than 1,500 persons. 88 There are approximately 1,000 licensees in the Rural Radiotelephone Service, and the Commission estimates that there are 1,000 or fewer small entity licensees in the Rural Radiotelephone Service that may be affected by the rules and policies adopted herein. 29. Air- Ground Radiotelephone Service. The Commission has not adopted a small business size standard specific to the Air- Ground Radiotelephone Service. 89 We will use SBA’s small business size standard applicable to “Cellular and Other Wireless Telecommunications,” i. e., an entity employing no 83 See Service Rules for the 746- 764 MHz Bands, and Revisions to Part 27 of the Commission’s Rules, WT Docket No. 99- 168, Second Report and Order, 65 FR 17599 (2000). 84 See generally Public Notice, “220 MHz Service Auction Closes,” Report No. WT 98- 36 (Wireless Telecommunications Bureau, Oct. 23, 1998). 85 Public Notice, “700 MHz Guard Band Auction Closes,” DA 01- 478 (released Feb. 22, 2001). 86 The service is defined in § 22. 99 of the Commission’s Rules, 47 C. F. R. § 22. 99. 87 BETRS is defined in §§ 22. 757 and 22. 759 of the Commission’s Rules, 47 C. F. R. §§ 22. 757 and 22. 759. 88 13 C. F. R. § 121.201, NAICS code 513322. 89 The service is defined in § 22. 99 of the Commission’s Rules, 47 C. F. R. § 22. 99. 29 Federal Communications Commission FCC 05- 59 B- 12 more than 1,500 persons. 90 There are approximately 100 licensees in the Air- Ground Radiotelephone Service, and we estimate that almost all of them qualify as small under the SBA small business size standard. 30. Fixed Microwave Services. Fixed microwave services include common carrier, 91 private operational- fixed, 92 and broadcast auxiliary radio services. 93 At present, there are approximately 22,015 common carrier fixed licensees and 61,670 private operational- fixed licensees and broadcast auxiliary radio licensees in the microwave services. The Commission has not created a size standard for a small business specifically with respect to fixed microwave services. For purposes of this analysis, the Commission uses the SBA small business size standard for the category “Cellular and Other Telecommunications,” which is 1,500 or fewer employees. 94 The Commission does not have data specifying the number of these licensees that have more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of fixed microwave service licensees that would qualify as small business concerns under the SBA’s small business size standard. Consequently, the Commission estimates that there are up to 22,015 common carrier fixed licensees and up to 61,670 private operational- fixed licensees and broadcast auxiliary radio licensees in the microwave services that may be small and may be affected by the rules and policies adopted herein. We noted, however, that the common carrier microwave fixed licensee category includes some large entities. 31. Offshore Radiotelephone Service. This service operates on several UHF television broadcast channels that are not used for television broadcasting in the coastal areas of states bordering the Gulf of Mexico. 95 There are presently approximately 55 licensees in this service. We are unable to estimate at this time the number of licensees that would qualify as small under the SBA’s small business size standard for “Cellular and Other Wireless Telecommunications” services. 96 Under that SBA small business size standard, a business is small if it has 1,500 or fewer employees. 97 32. 39 GHz Service. The Commission created a special small business size standard for 39 GHz licenses – an entity that has average gross revenues of $40 million or less in the three previous calendar 90 13 CFR § 121.201, NAICS codes 513322. 91 See 47 C. F. R. §§ 101 et seq. (formerly, Part 21 of the Commission’s Rules) for common carrier fixed microwave services (except Multipoint Distribution Service). 92 Persons eligible under parts 80 and 90 of the Commission’s Rules can use Private Operational- Fixed Microwave services. See 47 C. F. R. Parts 80 and 90. Stations in this service are called operational- fixed to distinguish them from common carrier and public fixed stations. Only the licensee may use the operational- fixed station, and only for communications related to the licensee’s commercial, industrial, or safety operations. 93 Auxiliary Microwave Service is governed by Part 74 of Title 47 of the Commission’s Rules. See 47 C. F. R. Part 74. This service is available to licensees of broadcast stations and to broadcast and cable network entities. Broadcast auxiliary microwave stations are used for relaying broadcast television signals from the studio to the transmitter, or between two points such as a main studio and an auxiliary studio. The service also includes mobile television pickups, which relay signals from a remote location back to the studio. 94 13 CFR § 121.201, NAICS code 513322. 95 This service is governed by Subpart I of Part 22 of the Commission’s Rules. See 47 C. F. R. §§ 22. 1001- 22.1037. 96 13 C. F. R. § 121.201, NAICS code 513322. 97 Id. 30 Federal Communications Commission FCC 05- 59 B- 13 years. 98 An additional size standard for “very small business” is: an entity that, together with affiliates, has average gross revenues of not more than $15 million for the preceding three calendar years. 99 The SBA has approved these small business size standards. 100 The auction of the 2,173 39 GHz licenses began on April 12, 2000 and closed on May 8, 2000. The 18 bidders who claimed small business status won 849 licenses. Consequently, the Commission estimates that 18 or fewer 39 GHz licensees are small entities that may be affected by the rules and polices adopted herein. 33. Multipoint Distribution Service, Multichannel Multipoint Distribution Service, and ITFS. Multichannel Multipoint Distribution Service systems, often referred to as “wireless cable,” transmit video programming to subscribers using the microwave frequencies of the Multipoint Distribution Service (MDS) and Instructional Television Fixed Service (ITFS). 101 In connection with the 1996 MDS auction, the Commission established a small business size standard as an entity that had annual average gross revenues of less than $40 million in the previous three calendar years. 102 The MDS auctions resulted in 67 successful bidders obtaining licensing opportunities for 493 Basic Trading Areas. Of the 67 auction winners, 61 met the definition of a small business. MDS also includes licensees of stations authorized prior to the auction. In addition, the SBA has developed a small business size standard for Cable and Other Program Distribution, which includes all such companies generating $12.5 million or less in annual receipts. 103 According to Census Bureau data for 1997, there were a total of 1,311 firms in this category, total, that had operated for the entire year. 104 Of this total, 1,180 firms had annual receipts of under $10 million and an additional 52 firms had receipts of $10 million or more but less than $25 million. Consequently, we estimate that the majority of providers in this service category are small businesses that may be affected by the rules and policies adopted herein. This SBA small business size standard also appears applicable to ITFS. There are presently 2,032 ITFS licensees. All but 100 of these licenses are held by educational institutions. Educational institutions are included in this analysis as small entities. 105 Thus, we tentatively conclude that at least 1,932 licensees are small businesses. 34. Local Multipoint Distribution Service. Local Multipoint Distribution Service (LMDS) is a 98 See Amendment of the Commission’s Rules Regarding the 37. 0- 38.6 GHz and 38. 6- 40.0 GHz Bands, ET Docket No. 95- 183, Report and Order, 63 Fed. Reg. 6079 (Feb. 6, 1998). 99 Id. 100 See Letter to Kathleen O’Brien Ham, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, SBA (Feb. 4, 1998). 101 Amendment of Parts 21 and 74 of the Commission’s Rules with Regard to Filing Procedures in the Multipoint Distribution Service and in the Instructional Television Fixed Service and Implementation of Section 309( j) of the Communications Act – Competitive Bidding, MM Docket No. 94- 131 and PP Docket No. 93- 253, Report and Order, 10 FCC Rcd 9589, 9593, para. 7 (1995). 102 47 C. F. R. § 21. 961( b)( 1). 103 13 C. F. R. § 121.201, NAICS code 513220. 104 U. S. Census Bureau, 1997 Economic Census, Subject Series: Information, “Establishment and Firm Size (Including Legal Form of Organization)”, Table 4, NAICS code 513220 (issued October 2000). 105 In addition, the term “small entity” within SBREFA applies to small organizations (nonprofits) and to small governmental jurisdictions (cities, counties, towns, townships, villages, school districts, and special districts with populations of less than 50, 000). 5 U. S. C. §§ 601( 4)-( 6). We do not collect annual revenue data on ITFS licensees. 31 Federal Communications Commission FCC 05- 59 B- 14 fixed broadband point- to- multipoint microwave service that provides for two- way video telecommunications. 106 The auction of the 1,030 LMDS licenses began on February 18, 1998 and closed on March 25, 1998. The Commission established a small business size standard for LMDS licenses as an entity that has average gross revenues of less than $40 million in the three previous calendar years. 107 An additional small business size standard for “very small business” was added as an entity that, together with its affiliates, has average gross revenues of not more than $15 million for the preceding three calendar years. 108 The SBA has approved these small business size standards in the context of LMDS auctions. 109 There were 93 winning bidders that qualified as small entities in the LMDS auctions. A total of 93 small and very small business bidders won approximately 277 A Block licenses and 387 B Block licenses. On March 27, 1999, the Commission re- auctioned 161 licenses; there were 40 winning bidders. Based on this information, we conclude that the number of small LMDS licenses consists of the 93 winning bidders in the first auction and the 40 winning bidders in the re- auction, for a total of 133 small entity LMDS providers. 35. 218- 219 MHz Service. The first auction of 218- 219 MHz spectrum resulted in 170 entities winning licenses for 594 Metropolitan Statistical Area licenses. Of the 594 licenses, 557 were won by entities qualifying as a small business. For that auction, the small business size standard was an entity that, together with its affiliates, has no more than a $6 million net worth and, after federal income taxes (excluding any carry over losses), has no more than $2 million in annual profits each year for the previous two years. 110 In the 218- 219 MHz Report and Order and Memorandum Opinion and Order, we established a small business size standard for a “small business” as an entity that, together with its affiliates and persons or entities that hold interests in such an entity and their affiliates, has average annual gross revenues not to exceed $15 million for the preceding three years. 111 A “very small business” is defined as an entity that, together with its affiliates and persons or entities that hold interests in such an entity and its affiliates, has average annual gross revenues not to exceed $3 million for the preceding three years. 112 We cannot estimate, however, the number of licenses that will be won by entities qualifying as small or very small businesses under our rules in future auctions of 218- 219 MHz spectrum. 36. 24 GHz – Incumbent Licensees. This analysis may affect incumbent licensees who were relocated to the 24 GHz band from the 18 GHz band, and applicants who wish to provide services in the 24 GHz band. The applicable SBA small business size standard is that of “Cellular and Other Wireless Telecommunications” companies. This category provides that such a company is small if it employs no 106 See Local Multipoint Distribution Service, Second Report and Order, 12 FCC Rcd 12545 (1997). 107 Id. 108 Id. 109 See Letter to Dan Phythyon, Chief, Wireless Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, SBA (Jan. 6, 1998). 110 Implementation of Section 309( j) of the Communications Act – Competitive Bidding, PP Docket No. 93- 253, Fourth Report and Order, 59 Fed. Reg. 24947 (May 13, 1994). 111 In the Matter of Amendment of Part 95 of the Commission’s Rules to Provide Regulatory Flexibility in the 218- 219 MHz Service, WT Docket No. 98- 169, Report and Order and Memorandum Opinion and Order, 64 Fed. Reg. 59656 (Nov. 3, 1999). 112 Id. 32 Federal Communications Commission FCC 05- 59 B- 15 more than 1,500 persons. 113 According to Census Bureau data for 1997, there were 977 firms in this category, total, that operated for the entire year. 114 Of this total, 965 firms had employment of 999 or fewer employees, and an additional 12 firms had employment of 1,000 employees or more. 115 Thus, under this size standard, the great majority of firms can be considered small. These broader census data notwithstanding, we believe that there are only two licensees in the 24 GHz band that were relocated from the 18 GHz band, Teligent 116 and TRW, Inc. It is our understanding that Teligent and its related companies have less than 1,500 employees, though this may change in the future. TRW is not a small entity. Thus, only one incumbent licensee in the 24 GHz band is a small business entity. 37. 24 GHz – Future Licensees. With respect to new applicants in the 24 GHz band, the small business size standard for “small business” is an entity that, together with controlling interests and affiliates, has average annual gross revenues for the three preceding years not in excess of $15 million. 117 “Very small business” in the 24 GHz band is an entity that, together with controlling interests and affiliates, has average gross revenues not exceeding $3 million for the preceding three years. 118 The SBA has approved these small business size standards. 119 These size standards will apply to the future auction, if held. D. Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements 38. In the IRFA, we invited comment on any possible costs associated with the abbreviated dialing arrangement ultimately chosen to comply with the Pipeline Safety Act. 120 We received five general, non- IRFA comments in response to this issue. Commenters support the NANC’s recommendation that the cost of implementing a One Call service should not be an unfunded mandate. 121 Qwest asserts that, although past N11 deployments have not typically involved federal cost recovery, state 113 13 C. F. R. § 121.201, NAICS code 513322. 114 U. S. Census Bureau, 1997 Economic Census, Subject Series: Information, “Employment Size of Firms Subject to Federal Income Tax: 1997,” Table 5, NAICS code 513322 (issued Oct. 2000). 115 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is “Firms with 1,000 employees or more.” 116 Teligent acquired the DEMS licenses of FirstMark, the only licensee other than TRW in the 24 GHz band whose license has been modified to require relocation to the 24 GHz band. 117 In the Matter of Amendments to Parts 1,2, 87 and 101 of the Commission’s Rules to License Fixed Services at 24 GHz, Report and Order, 15 FCC Rcd 16934, 16967 (2000); see also 47 C. F. R. § 101.538( a)( 2). 118 In the Matter of Amendments to Parts 1,2, 87 and 101 of the Commission’s Rules to License Fixed Services at 24 GHz, Report and Order, 15 FCC Rcd 16934, 16967 (2000); see also 47 C. F. R. § 101.538( a)( 1). 119 See Letter to Margaret W. Wiener, Deputy Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, FCC, from Gary M. Jackson, Assistant Administrator, SBA (July 28, 2000). 120 See Notice, 19 FCC Rcd at 9202, para. 35. 121 See DIG IMG Report at 11; APCC Comments at 3- 4; NTCA Comments at 1- 3; Qwest Comments at 10- 11; SBC Comments at 6; Verizon Reply at 2; Verizon Ex Parte. For example, SBC estimates that the implementation of the 811 code will cost SBC approximately $1. 5 million dollars for switch translations, network testing, and other network- related costs. The information technology work required will cost approximately $750, 000 to $1 million dollars, and customer education will cost approximately $500, 000 to $750, 000. SBC Comments at 6. 33 Federal Communications Commission FCC 05- 59 B- 16 regulatory commissions are not uniform in the way in which they resolve cost recovery matters associated with N11 deployments. 122 Specifically, APCC contends that if payphone service providers are not excluded from the statutory mandate, then they should also be compensated for such calls. 123 39. While we recognize that there may be some costs associated with implementation of the 811 code, we have not specified parameters for cost recovery in this Order. The Pipeline Safety Act did not provide for federal financial support as part of the mandate for a nationwide abbreviated dialing arrangement for access to One Call Centers. 124 Therefore, we find that the Congressional mandate and benefits of a national N11 code assignment, specifically 811, outweigh any concerns regarding cost recovery on the federal level. These issues are most appropriately addressed by the state and local governments. As indicated above, we believe that state commissions are in the best position to address issues associated with implementing 811 because many of the One Call Centers were developed by, or under the auspices of, the state commissions. 125 E. Steps Taken to Minimize Significant Economic Impact on Small Entities, and Significant Alternatives Considered 40. The RFA requires an agency to describe any significant, specifically small business, 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 or reporting requirements under the rule for 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 small entities. 126 41. In adopting 811 as the national abbreviated dialing code for access to One Call Centers, we have taken steps to minimize the impact on small entities. The overall objective of this proceeding was to assess possible abbreviated dialing arrangements to use to access state One Call Centers as mandated by the Pipeline Safety Act, while at the same time, seeking to minimize any adverse impact on numbering resources. 127 We, therefore, sought comment on various abbreviated dialing arrangements, including those considered and recommended by the NANC, that could be used by state One Call notification systems in compliance with the Pipeline Safety Act while at the same time minimizing, to the extent 122 See Qwest Comments at 10- 11. 123 See APCC Comments at 3- 4. 124 See Pipeline Safety Act § 17. We agree with APCC that Section 276 of the 1996 Act does not exempt payphone calls made to One Call Centers from that statute’s requirement that payphone service providers be “fairly compensated.” See 47 U. S. C. § 276( b)( 1). Therefore, coin calls made from a payphone to a One Call Center should be paid in accordance with that payphone’s established coin rate, and coinless calls made from a payphone to a One Call Center should be compensated in accordance with the Commission’s payphone compensation rules. See 47 C. F. R. §§ 64. 1300 et seq. 125 See Order, supra para. 35. 126 5 U. S. C. § 603( c). 127 See Order, supra para. 9. 34 Federal Communications Commission FCC 05- 59 B- 17 possible, any adverse impact on numbering resources, including any impact on small entities. 128 42. After reviewing the comments and considering the possible abbreviated dialing arrangements that could be used by state One Call notification systems in compliance with the Pipeline Safety Act, we conclude that an N11 code is the best solution, within the framework of the statute, for access to One Call Centers. 129 Thus, consistent with the statutory mandate, we designate 811 as the national abbreviated dialing code to be used by state One Call notification systems for providing advanced notice of excavation activities to underground facility operators in compliance with the Pipeline Safety Act. 130 We agree with commenters that the other proposed alternatives - codes using a leading star or number sign, e. g. *344 or #344, and the establishment of an ERC, such as 344, as an abbreviated dialing code are impractical, costly to implement, and could delay the availability of a national One Call number for years. 131 Moreover, this abbreviated dialing arrangement would not achieve the uniformity mandated by the Pipeline Safety Act since all users would not be dialing the same sequence if the code selected includes a star or number sign. 132 We believe that 811 will have less impact on customer dialing patterns and can be implemented without the substantial cost and delay of switch development required with other proposed alternatives. 133 43. Although we recognize that using 811 depletes the quantity of remaining N11 codes assignable for other purposes, using an N11 code to access One Call Centers will consume fewer numbering resources than certain other alternative abbreviated dialing arrangements. 134 Additionally, the use of an N11 code to access One Call services follows the existing conventions for abbreviated dialing already familiar to customers. 135 The N11 architecture is an established abbreviated dialing plan that is recognized by switch manufacturers and the public at large. 136 Most significantly, using an N11 code such as 811 satisfies the legislative mandate for a three- digit nationwide number. 137 44. Further, although the Commission has allowed the local use of unassigned N11 codes, it has recognized that this use must be discontinued on short notice. 138 Accordingly, in this Order, we reject THG’s proposed alternative that would have allowed the continued use of 811 for commercial purposes until a qualified entity applies for and develops the capability to put the code into use for One Call 128 Id. 129 See Order, supra para. 12. 130 Id. 131 Id. 132 Id. 133 Id. 134 See Order, supra para. 13. 135 Id. 136 Id. 137 Id.; see Pipeline Safety Act § 17. 138 See N11 First Report and Order, 12 FCC Rcd at 5597, para 41. 35 Federal Communications Commission FCC 05- 59 B- 18 access. 139 In order to minimize the impact of our action, including the impact on small business entities, we provide a two year period, from publication of this Order in the Federal Register, for implementing the 811 code. 140 Based on the record before us, we believe two years from publication of this Order in the Federal Register is a reasonable time period for implementation of 811. 141 The alternative of not providing for a transition period was considered but rejected because we believe a transition period is necessary to provide all telecommunications carriers, including wireline, wireless, and payphone service providers, sufficient time to make the necessary network modifications or upgrades, as well as integrate existing One Call notification systems, thus minimizing any adverse or unfair impact on smaller entities. 142 In addition, this transition period will give carriers time to clear this number of any other existing uses, provide customer education, and ensure that there is no unreasonably abrupt disruption of the existing uses. 143 F. Publication of FRFA 45. The Commission will send a copy of the Order, including this FRFA, to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the Order and FRFA (or summaries thereof) will also be published in the Federal Register. 144 139 See Order, supra para. 33; THG Comments at 2- 4. 140 See Order, supra paras. 32- 34. 141 See id. at para. 32. 142 Id. at paras. 32- 34. 143 Id. at para. 34. 144 See 5 U. S. C. § 604( b). 36 Federal Communications Commission FCC 05- 59 SEPARATE STATEMENT OF CHAIRMAN MICHAEL K. POWELL Re: The Use of N11 Codes and Other Abbreviated Dialing Arrangements, Sixth Report and Order Damage from excavation activities can cause crippling outages to the nation’s energy supply, communications networks, law enforcement agencies, hospitals, air traffic control operations, emergency response providers, and military bases. The “One Call” system was instituted as a means by which contractors and the public can alert the proper authorities to imminent excavation work, thereby avoiding potential service interruptions and safety hazards. The Congress found One Call notifications so integral to public safety that it directed the Commission and the Department of Transportation to establish a single One Call number to enhance the system’s effectiveness. Today’s action carries out this Congressional mandate. Better, more efficient communication regarding excavations means saved lives and dollars as well as a more secure homeland, and 811 makes that a reality. I call on industry stakeholders to increase public awareness of the One Call notification system and promote the use of the new nationwide 811 One Call number. 37