Federal Communications Commission FCC 08-148
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Development of Nationwide Broadband Data to 
Evaluate Reasonable and Timely Deployment of 
Advanced Services to All Americans, Improvement 
of Wireless Broadband Subscribership Data, and 
Development of Data on Interconnected Voice over 
Internet Protocol (VoIP) Subscribership
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WC Docket No. 07-38
ORDER ON RECONSIDERATION
Adopted:  June 11, 2008 Released:  June 12, 2008
By the Commission:  Commissioners Copps and Adelstein issuing separate statements.
I. INTRODUCTION
1. In this sua sponte Order on Reconsideration, we revise one of the reporting requirements 
of Form 477 adopted in the 2008 Form 477 Order.1 Specifically, as set forth in more detail below, we 
expand the collection of broadband connections data as adopted in the Form 477 Order to collect, in 
addition, the percentage of such connections that are residential.
II. BACKGROUND
2. The Commission began collecting data from broadband Internet service providers using 
Form 477 in May 2000 as a means to help the Commission and the public understand the extent of 
broadband deployment nationwide.  Broadband service providers and local telephone service providers 
have reported data numerous times since then.2 The reporting entities include incumbent and competitive 
local exchange carriers (LECs), operators of terrestrial and satellite wireless facilities, cable companies, 
municipalities, and any other facilities-based providers of broadband connections to end users.3
3. In April of 2007, we issued a Notice of Proposed Rulemaking in which we questioned 
whether the information collected by Form 477 provides a sufficiently complete and accurate picture of 
broadband deployment, particularly with regard to deployment and adoption in rural areas, and the 
increasing use of wireless broadband and VoIP applications.4 In the Data Gathering Notice, we proposed 
  
1 Development of Nationwide Broadband Data to Evaluate Reasonable and Timely Deployment of Advanced 
Services to All Americans, Improvement of Wireless Broadband Subscribership Data, and Development of Data on 
Interconnected Voice over Internet Protocol (VoIP) Subscribership, WC Docket No. 07-38, Report and Order and 
Further Notice of Proposed Rulemaking, FCC 08-89 (rel. June 12, 2008) (Form 477 Order).
2 Service providers filed Form 477 data for the first time on May 15, 2000, to report connections as of December 31, 
1999.  Since then, providers have filed mid-year data each September 1 and year-end data each March 1.
3 Local Telephone Competition and Broadband Reporting, Report and Order, WC Docket No. 04-141, 19 FCC Rcd 
22340, 22384 (2004) (2004 Order).
4 Development of Nationwide Broadband Data to Evaluate Reasonable and Timely Deployment of Advanced 
Services to All Americans, Improvement of Wireless Broadband Subscribership Data, and Development of Data on 
Interconnected Voice over Internet Protocol (VoIP) Subscribership, WC Docket No. 07-38, Notice of Proposed 
(continued….)
Federal Communications Commission FCC 08-148
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modifying Form 477 in several respects to improve the quality of the data collected.  Information about 
broadband availability and deployment throughout the nation, in all its forms, is essential to the 
Commission to assess the success of our broadband policies, and to fulfill our obligations under section 
706 of the Telecommunications Act of 1996.5 Accordingly, in the Data Gathering Notice, we solicited 
comment about options for collecting broadband deployment information in finer geographic detail.6 The 
Data Gathering Notice sought comment on ways to improve the quality of data collected concerning 
wireless broadband Internet access service,7 asked if alternative speed tier information should be 
collected,8 and asked how best to collect information about subscribership to interconnected VoIP 
service.9 Generally, the Data Gathering Notice solicited comment about the balance between the benefits 
of these additional data collections and any burdens such collections may impose.
4. In March of 2008, we adopted a Report and Order and Further Notice of Proposed 
Rulemaking in which we modified the information collected by Form 477 to increase the precision and 
quality of broadband subscribership data collected by the Commission to track broadband deployment 
nationwide.10 The Form 477 Order, among other refinements, increased the granularity of reporting to 
the level of Census Tracts,11 increased the number of speed tiers used to report subscriber counts and 
required reporting of both download and upload transfer rates,12 and amended the reporting requirements 
of mobile wireless broadband providers to create a separate category of reporting for subscribers whose 
data plans allow them to browse the Internet and access the Internet content of their choice.13
III. DISCUSSION
5. Pursuant to section 1.108 of the Commission’s rules,14 we reconsider on our own motion 
the reporting requirements of Form 477 as adopted by the Form 477 Order.  In particular, we expand the 
(Continued from previous page)    
Rulemaking, 22 FCC Rcd 7760, 7765-66, paras. 10-12, 22 (2007) (Data Gathering Notice).  Also, the United States 
Government Accountability Office (GAO) has reviewed the strengths and weaknesses of data about broadband 
availability, including data collected using FCC Form 477, and has concluded that, while broadband deployment is 
extensive nationwide, it remains very difficult to assess the extent of deployment gaps in rural areas.  Id. at 7764, 
para. 6 n.22 (citing United States Government Accountability Office, Broadband Deployment Is Extensive 
throughout the United States, but It Is Difficult to Assess the Extent of Deployment Gaps in Rural Areas, GAO-06-
426 (May 2006)).
5 47 U.S.C. § 157 nt (incorporating section 706 of the Telecommunications Act of 1996, Pub. Law No. 104-104, 110 
Stat. 56 (1996)).
6 Data Gathering Notice, 22 FCC Rcd at 7774, para. 31.
7 Id. at 7766-69, paras. 11-17.
8 Id. at 7769-70, paras. 18-21.
9 Id. at 7770, para. 22.
10 See Form 477 Order.
11 Form 477 Order, paras. 10-16.
12 Id. at paras. 19-22.
13 Id. at paras. 23-24.
14 47 C.F.R. § 1.108 (“The Commission may, on its own motion, set aside any action made or taken by it within 30 
days from the date of public notice of such action, as that date is defined in § 1.4(b) of these rules.”); see also Sprint 
Corp. v. FCC, 315 F.3d 369, 373 (D.C. Cir. 2003) (stating that notice and comment is not required before an agency 
may take action on reconsideration in certain contexts, such as informal adjudications and policy statements).
Federal Communications Commission FCC 08-148
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Form 477 Order’s broadband connection reporting requirement to also require reporting of the percentage 
of residential broadband connections.15  
6. While comments in the record for the Form 477 Order show support for distinguishing 
residential services from business services,16 the Commission simply maintained the pre-existing 
requirement to report the percentage of residential broadband connections at the state level.17 On May 13, 
2008, after the Commission adopted the Form 477 Order, representatives from AT&T and Free Press met 
with the Commission to discuss the feasibility of extending the existing requirement that providers report 
state-wide percentages of residential lines to the Census Tract level.18 These parties proposed an 
approach that, subject to certain assumptions, would enable reporting of the percentage of residential 
broadband connections at the Census Tract level.19 We find that proposed approach reasonable, and 
therefore adopt such a requirement, as discussed below.  
7. On reconsideration, we conclude that extending the existing residential percentage 
reporting requirement will improve our understanding of the scope of broadband deployment and will 
assist the Commission’s ongoing efforts to foster increased deployment of broadband services to 
residential customers in accordance with the Commission’s obligation under section 706 of the 
Telecommunications Act of 1996,20 to an extent that outweighs the cost to providers.  We therefore 
require wired, terrestrial fixed wireless, and satellite broadband service providers to report, for each 
Census Tract and each speed tier in which the provider offers service, the number of subscribers and the 
percentage of subscribers that are residential.21 For terrestrial mobile wireless broadband service 
providers, which only report broadband connection at the state level under the Form 477 Order as 
adopted, we do not modify the obligation for such providers to report percentage of residential broadband 
connections at the state level.22 As in the Form 477 Order, we find that granting a blanket exemption to 
  
15 See Form 477 Order, paras 10-16.
16 See, e.g., Letter from Christopher J. White, Deputy Public Advocate, New Jersey Division of Rate Counsel, to 
Marlene H. Dortch, Secretary, FCC, WC Docket No. 07-38, at 5 (filed July 16, 2007) (recommending that data for 
residential customers be reported separately from business customers, because residential customers face different 
pricing systems and have different needs than business customers, and thus adopt broadband services at different 
rates, and demonstrate preferences for different speeds and technologies).
17 Form 477 Order, para. 14 n.47.
18 Letter from Frank Simone, AT&T Services Inc., to Marlene H. Dortch, Secretary, FCC, WC Docket No. 07-38, at 
1, filed May 13, 2008 (AT&T and Free Press May 13, 2008 Ex Parte).  The pre-existing FCC Form 477 data 
collection likewise recognized that good faith estimates may be necessary to provide residential percentages of 
broadband connections even at the state level.  FCC Form 477 Instructions at 5.
19 Id. at 1-2.
20 Section 706 of the Telecommunications Act of 1996 requires the Commission to “encourage the deployment on a 
reasonable and timely basis of advanced telecommunications capability to all Americans.”  47 U.S.C. § 157 nt 
(incorporating section 706 of the Telecommunications Act of 1996, Pub. Law No. 104-104, 110 Stat. 56 (1996))
21 The Form 477 Order created an alternative form of reporting this information which we retain but modify slightly 
here.  See Form 477 Order, paras. 15, 32.  Upon a showing of significant hardship, reporting entities may report a 
list of service addresses or GIS coordinates of service, along with the speed and technology of service offered at 
each address and whether the subscriber at that service address is a residential or business subscriber, in lieu of the 
requirement to report subscriber counts and percentage residential by Census Tract and speed tier.
22 Mobile wireless service providers are required to report the number of connections they provide in each state in 
which they offer service, along with the percentage of connections by speed tier within that state that are residential.  
See Form 477 Order, paras. 16, 23-24.  Mobile wireless service providers are also required to report the Census 
(continued….)
Federal Communications Commission FCC 08-148
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small carriers would undercut the benefits of our revised information collection by depriving the 
Commission and other parties of adequate information on broadband deployment and adoption in rural, 
unserved, and underserved areas of the nation, the areas where additional information is most needed and 
would be likely to have the greatest impact.23 Additionally, we note that all Form 477 filers must 
currently submit, for each state in which they provide service, the percentage of their broadband 
subscribers that are residential.  We conclude that any incremental burden associated with providing this 
information on the Census Tract basis is outweighed by the utility of the data we will obtain.  We thus 
apply the revised requirement to all broadband service providers, regardless of size.24  
IV. PROCEDURAL MATTERS
A. Final Regulatory Flexibility Analysis
8. Pursuant to the Regulatory Flexibility Act (RFA),25 the Commission has prepared a 
Supplemental Final Regulatory Flexibility Analysis (Supplemental FRFA) for the Order on 
Reconsideration concerning the possible significant economic impact on small entities by the policies and 
actions considered in the Order on Reconsideration.  The text of the Supplemental FRFA is included in 
the Appendix.
B. Paperwork Reduction Act
9. Paperwork Reduction Act.  The Order on Reconsideration contains new and modified 
information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 
No. 104-13.  It will be submitted to the Office of Management and Budget (OMB) for review under 
Section 3507(d) of the PRA.  The OMB, the general public, and other Federal agencies are invited to 
comment on the new and modified information collection requirements contained in this proceeding.  In 
addition, we note that, pursuant to the Small Business Paperwork Relief Act of 2005, Public Law No. 
107-198, see 44 U.S.C. § 3506(c)(4) (SBPRA), we have considered how the Commission might “further 
reduce the information collection burden for small business concerns with fewer than 25 employees.” We 
find that the new and modified requirements must apply fully to small entities (as well as to others) to 
protect consumers and further other goals, as described in the Order on Reconsideration.  Pursuant to the 
SBPRA, we will seek specific comment on how we might “further reduce the information collection 
burden for small business concerns with fewer than 25 employees.”
C. Congressional Review Act
10. The Commission will include a copy of this Order on Reconsideration and Further Notice 
in a report to be sent to Congress and the Government Accountability Office pursuant to the 
Congressional Review Act.  See 5 U.S.C. § 801(a)(1)(A). 
(Continued from previous page)    
Tracts that best represent their broadband service footprint for each of the speed tiers in which they offer service.  
See Form 477 Order, para. 16.
23 See Form 477 Order, para. 32.
24 However, as noted above, we retain the alternative reporting mechanism adopted in the Form 477 Order, 
expanded, consistent with this Order on Reconsideration, to require that service addresses be identified as either 
business or residential. See supra note 23.
25 See 5 U.S.C. § 603. The RFA, see U.S.C. §601 et seq., has been amended by the Contract with America 
Advancement Act of 1996, Pub. L. No. 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the 
Small Business Regulatory Enforcement Fairness Act of 1996 (Small Business Act).
Federal Communications Commission FCC 08-148
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V. ORDERING CLAUSES
11. Accordingly, IT IS ORDERED that, pursuant to sections 1-5, 11, 201-205, 211, 215, 218-
220, 251-271, 303(r), 332, 403, 502, and 503 of the Communications Act of 1934, as amended, 47 U.S.C. 
§§ 151-155, 161, 201-205, 211, 215, 218-220, 251-271, 303(r), 332, 403, 502, and 503, and section 706 
of the Telecommunications Act of 1996, 47 U.S.C. § 157 nt, this Order on Reconsideration, with all 
attachments, IS ADOPTED.
12. IT IS FURTHER ORDERED, pursuant to sections 1.103(a) and 1.427(b) of the 
Commission’s rules, 47 C.F.R. §§ 1.103(a), 1.427(b), that this Order on Reconsideration SHALL BE 
EFFECTIVE 30 days after publication of notice of the Order on Reconsideration in the FEDERAL 
REGISTER, subject to Office of Management and Budget (OMB) approval for new or modified 
information collection requirements.
13. IT IS FURTHER ORDERED that the Commission’s Consumer and Governmental 
Affairs Bureau, Reference Information Center, SHALL SEND a copy of this Order on Reconsideration, 
including the Supplemental Final Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the Small Business Administration.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
Federal Communications Commission FCC 08-148
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APPENDIX
Supplemental Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980, as amended (RFA),26 an Initial 
Regulatory Flexibility Analysis (IRFA) was incorporated in the April 2007 Data Gathering Notice.27 The 
Commission sought written public comment on the proposals in the Data Gathering Notice, including 
comment on the IRFA.  A Final Regulatory Flexibility Analysis (FRFA) was adopted in conjunction with 
the Commission’s Form 477 Order.28 This present Supplemental FRFA conforms to the RFA, and 
addresses the new requirements adopted in this Order on Reconsideration.29
A. Need for, and Objectives of, the Order on Reconsideration
2. In today’s Order on Reconsideration, we adopt certain changes to Form 477 to collect 
additional, improved data on broadband availability and use.  We expand the FCC Form 477 data 
collection adopted in the Form 477 Order to collect additional data on the percentage of residential 
broadband service subscriptions.  These changes will greatly improve the ability of the Commission to 
understand the extent of broadband deployment, and will enable the Commission to continue to develop 
and maintain appropriate broadband policies, in particular to carry out its obligation under section 706 of 
the Telecommunications Act of 1996 to “determine whether advanced telecommunications capability is 
being deployed to all Americans in a reasonable and timely fashion.”30
B. Summary of Significant Issues Raised by Public Comments in 
Response to the IRFA
3. In the Form 477 Order, and accompanying FRFA, we discussed the significant issues 
raised in response to public comments on the IRFA.31 We received no filings in response to that IRFA.
C. Description and Estimate of the Number of Small Entities to Which the Rules Will 
Apply
4. The RFA directs agencies to provide a description of, and, where feasible, an estimate of, 
the number of small entities that may be affected by the rules adopted herein.32 The RFA generally 
defines the term “small entity” as having the same meaning as the terms “small business,” “small 
  
26 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, 110 Stat. 857 (1996).
27 Development of Nationwide Broadband Data to Evaluate Reasonable and Timely Deployment of Advanced 
Services to All Americans, Improvement of Wireless Broadband Subscribership Data, and Development of Data on 
Interconnected Voice over Internet Protocol (VoIP) Subscribership, WC Docket No. 07-38, Notice of Proposed 
Rulemaking, 22 FCC Rcd 7760, 7765-66, paras. 10-12 (2007) (Data Gathering Notice).  
28 Form 477 Order Development of Nationwide Broadband Data to Evaluate Reasonable and Timely Deployment of 
Advanced Services to All Americans, Improvement of Wireless Broadband Subscribership Data, and Development of 
Data on Interconnected Voice over Internet Protocol (VoIP) Subscribership, WC Docket No. 07-38, Report and 
Order and Further Notice of Proposed Rulemaking, FCC 08-89 (rel. Jun 12, 2008) (Form 477 Order).
29 See 5 U.S.C. § 604.
30 47 U.S.C. § 157 nt (incorporating section 706 of the Telecommunications Act of 1996, Pub. Law No. 104-104, 
110 Stat. 56 (1996)).
31 See generally Form 477 Order, App. D.
32 5 U.S.C. § 604(a)(3).
Federal Communications Commission FCC 08-148
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organization,” and “small governmental jurisdiction.”33 In addition, the term “small business” has the 
same meaning as the term “small business concern” under the Small Business Act.34 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).35  
5. Incumbent Local Exchange Carriers (ILECs).  Neither the Commission nor the SBA has 
developed a size standard for small businesses specifically applicable to incumbent local exchange 
services.  The closest applicable size standard under SBA rules is for 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 1,307 carriers reported that they were engaged in the provision of local 
exchange services.  Of these 1,307 carriers, an estimated 1,019 have 1,500 or fewer employees and 288 
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.
6. Competitive Local Exchange Carriers (CLECs), Competitive Access Providers (CAPs), 
“Shared-Tenant Service Providers,” and “Other Local Service Providers.”  Neither the Commission nor 
the SBA has developed a small business size standard specifically for these service providers.  The 
appropriate 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,39 859 carriers reported that they were engaged in the provision of either competitive 
local exchange carrier or competitive access provider services.  Of these 859 carriers, an estimated 741 
have 1,500 or fewer employees and 118 have more than 1,500 employees.40 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, 44 carriers have reported that they are “Other Local Service Providers.”  Of the 
44, an estimated 43 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. 
7. We have included small incumbent local exchange carriers (LECs) in this present RFA 
analysis. As noted above, a “small business” under the RFA is one that, inter alia, meets the pertinent 
small business size standard (e.g., a telephone communications business having 1,500 or fewer 
employees), and “is not dominant in its field of operation.”41 The SBA’s Office of Advocacy contends 
  
33 5 U.S.C. § 601(6).
34 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.”
35 15 U.S.C. § 632.
36 13 C.F.R. § 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 Id.
41 5 U.S.C. § 601(3).
Federal Communications Commission FCC 08-148
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that, for RFA purposes, small incumbent LECs are not dominant in their field of operation because any 
such dominance is not “national” in scope.42 We have therefore included small incumbent LECs in this 
RFA analysis, although we emphasize that this RFA action has no effect on Commission analyses and 
determinations in other, non-RFA contexts.
8. 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.43 According to Commission data,44 184 carriers have reported that they are engaged in 
the provision of local resale services.  Of these, an estimated 181 have 1,500 or fewer employees and 
three 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.  
9. Toll 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.45 According to Commission data,46 881 carriers have reported that they are engaged in the 
provision of toll resale services.  Of these, an estimated 853 have 1,500 or fewer employees and 28 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.  
10. Payphone Service Providers (PSPs). 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.47 According to Commission data,48
657 carriers have reported that they are engaged in the provision of payphone services.  Of these, an 
estimated 653 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.
11. Interexchange Carriers (IXCs).  Neither the Commission nor the SBA has developed a 
size standard for small businesses specifically applicable to interexchange services.  The closest 
applicable size standard under SBA rules is for Wired Telecommunications Carriers.  Under that size 
standard, such a business is small if it has 1,500 or fewer employees.49 According to Commission data,50
330 companies reported that their primary telecommunications service activity was the provision of 
interexchange services.  Of these 330 companies, an estimated 309 have 1,500 or fewer employees and 21 
  
42 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 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. 13 C.F.R. § 121.102(b).
43 13 C.F.R. § 121.201, NAICS code 517911.
44 Trends in Telephone Service at Table 5.3.  
45 13 C.F.R. § 121.201, NAICS code 517911.
46 Trends in Telephone Service at Table 5.3.
47 13 C.F.R. § 121.201, NAICS code 517110.
48 Trends in Telephone Service at Table 5.3.
49 13 C.F.R. § 121.201, NAICS code 517110.
50 Trends in Telephone Service at Table 5.3.
Federal Communications Commission FCC 08-148
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have more than 1,500 employees.51 Consequently, the Commission estimates that the majority of 
interexchange service providers are small entities that may be affected by our action. 
12. Operator Service Providers (OSPs).  Neither the Commission nor the SBA has developed 
a small business size standard specifically for operator service providers.  The appropriate size standard 
under SBA rules is for the category Wired Telecommunications Carriers.  Under that size standard, such a 
business is small if it has 1,500 or fewer employees.52 According to Commission data,53 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.  
13. 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.54 According to Commission data,55 104 carriers have 
reported that they are engaged in the provision of prepaid calling cards.  Of these, an estimated 102 have 
1,500 or fewer employees and two have 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.
14. 800 and 800-Like Service Subscribers.56 Neither the Commission nor the SBA has 
developed a small business size standard specifically for 800 and 800-like service (“toll free”) 
subscribers.  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.57 The 
most reliable source of information regarding the number of these service subscribers appears to be data 
the Commission collects on the 800, 888, 877, and 866 numbers in use.58 According to our data, at the 
beginning of July 2006, the number of 800 numbers assigned was 7,647,941; the number of 888 numbers 
assigned was 5,318,667; the number of 877 numbers assigned was 4,431,162; and the number of 866 
numbers assigned was 6,008,976.  We do not have data specifying the number of these subscribers that 
are not independently owned and operated or have more than 1,500 employees, and thus are unable at this 
time to estimate with greater precision the number of toll free subscribers that would qualify as small 
businesses under the SBA size standard.  Consequently, we estimate that there are 7,647,941 or fewer 
small entity 800 subscribers; 5,318,667 or fewer small entity 888 subscribers; 4,431,162 or fewer small 
entity 877 subscribers; and 5,318,667 or fewer small entity 866 subscribers.
1. Wireless Carriers and Service Providers
15. Below, for those services subject to auctions, 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 
  
51 Id.
52 13 C.F.R. § 121.201, NAICS code 517110.
53 Trends in Telephone Service at Table 5.3.
54 13 C.F.R. § 121.201, NAICS code 517911.
55 Trends in Telephone Service at Table 5.3.
56 We include all toll-free number subscribers in this category, including those for 888 numbers.
57 13 C.F.R. § 121.201, NAICS code 517911.
58 Trends in Telephone Service at Tables 18.4, 18.5, 18.6, 18.7. 
Federal Communications Commission FCC 08-148
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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.
16. Wireless Telecommunications Carriers (except Satellite).  Since 2007, the SBA has 
recognized wireless firms within this new, broad, economic census category.59 Prior to that time, the 
SBA had developed a small business size standard for wireless firms within the now-superseded census 
categories of “Paging” and “Cellular and Other Wireless Telecommunications.”60 Under the present and 
prior categories, the SBA has deemed a wireless business to be small if it has 1,500 or fewer employees.  
Because Census Bureau data are not yet available for the new category, we will estimate small business 
prevalence using the prior categories and associated data.  For the first category of Paging, data for 2002 
show that there were 807 firms that operated for the entire year.61 Of this total, 804 firms had 
employment of 999 or fewer employees, and three firms had employment of 1,000 employees or more.62  
For the second category of Cellular and Other Wireless Telecommunications, data for 2002 show that 
there were 1,397 firms that operated for the entire year.63 Of this total, 1,378 firms had employment of 
999 or fewer employees, and 19 firms had employment of 1,000 employees or more.64 Thus, using the 
prior categories and the available data, we estimate that the majority of wireless firms can be considered 
small.  According to Commission data, 432 carriers reported that they were engaged in the provision of 
cellular service, Personal Communications Service (PCS), or Specialized Mobile Radio (SMR) 
Telephony services, which are placed together in the data.65 We have estimated that 221 of these are 
small, under the SBA small business size standard.66 Thus, under this category and size standard, about 
half of firms can be considered small.  This information is also included in paragraph 23.
17. Common Carrier Paging. The SBA has developed a small business size standard for 
Paging, under which a business is small if it has 1,500 or fewer employees.67 According to Commission 
data,68 365 carriers have reported that they are engaged in Paging or Messaging Service.  Of these, an 
estimated 360 have 1,500 or fewer employees, and 5 have more than 1,500 employees.  Consequently, the 
Commission estimates that the majority of paging providers are small entities that may be affected by our 
action.  In addition, 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 
  
59 13 C.F.R. § 121.201, NAICS code 517210.
60 13 C.F.R. § 121.201, NAICS codes 517211, 517212.
61 U.S. Census Bureau, 2002 Economic Census, Subject Series:  Information, “Establishment and Firm Size 
(Including Legal Form of Organization,” Table 5, NAICS code 517211 (issued Nov. 2005).
62  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 for firms with “1000 employees or more.”
63 U.S. Census Bureau, 2002 Economic Census, Subject Series:  Information, “Establishment and Firm Size 
(Including Legal Form of Organization,” Table 5, NAICS code 517212 (issued Nov. 2005).
64  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 for firms with “1000 employees or more.”
65 Trends in Telephone Service at Table 5.3.
66 Id.
67 13 C.F.R. § 121.201, NAICS code 517211 (This category will be changed for purposes of the 2007 Census to 
“Wireless Telecommunications Carriers (except Satellite),” NAICS code 517210.).
68 Trends in Telephone Service at Table 5.3.
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provisions such as bidding credits and installment payments.69 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.70 The SBA has approved these small business size standards.71 An auction of 
Metropolitan Economic Area licenses commenced on February 24, 2000, and closed on March 2, 2000.72  
Of the 985 licenses auctioned, 440 were sold.  Fifty-seven companies claiming small business status won.
18. 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 (WCS) 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.73 The Commission auctioned geographic area 
licenses in the WCS service.  In the auction, held in April 1997, there were seven winning bidders that 
qualified as “very small business” entities, and one that qualified as a “small business” entity.  
19. Wireless Telephony.  Wireless telephony includes cellular, personal communications 
services (PCS), and specialized mobile radio (SMR) telephony carriers.  As noted earlier, the SBA has 
developed a small business size standard for “Cellular and Other Wireless Telecommunications” 
services.74 Under that SBA small business size standard, a business is small if it has 1,500 or fewer 
employees.75 According to Commission data, 432 carriers reported that they were engaged in the 
provision of wireless telephony.76 We have estimated that 221 of these are small under the SBA small 
business size standard.  
20. 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 
  
69 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, GN Docket No. 93-252, PP Docket No. 93-253, Third Report 
and Order and Fifth Notice of Proposed Rulemaking, 12 FCC Rcd 10943, 11068-70, paras. 291-295 (1997) (220 
MHz Third Report and Order).
70 See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications 
Bureau, FCC, from A. Alvarez, Administrator, SBA (Dec. 2, 1998).
71 Revision of Part 22 and Part 90 of the Commission’s Rules to Facilitate Future Development of Paging Systems, 
WT Docket No. 96-18, PR Docket No. 93-253, Memorandum Opinion and Order on Reconsideration and Third 
Report and Order, 14 FCC Rcd 10030, paras. 98-107 (1999).  
72 Id. at 10085, para. 98.
73 See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications 
Bureau, FCC, from Aida Alvarez, Administrator, SBA (Dec. 2, 1998).
74 13 C.F.R. § 121.201, NAICS code 517212.
75 Id.
76 Trends in Telephone Service at Table 5.3.
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years.77 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.”78 These standards defining “small entity” in the context of broadband 
PCS auctions have been approved by the SBA.79 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 approximately 40 percent of the 1,479 licenses for Blocks D, E, and F.80 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.  
21. Narrowband Personal Communications Services.  To date, two auctions of narrowband 
personal communications services (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.81 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.82 In the future, the Commission will 
auction 459 licenses to serve Metropolitan Trading Areas (MTAs) 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 under the Commission’s Rules.  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.
  
77 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, GN Docket No. 90-314, Report and 
Order, 61 FR 33859 (July 1, 1996); see also 47 C.F.R. § 24.720(b).
78 Id.
79 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 5532 (1994).
80 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).
81 Amendment of the Commission’s Rules to Establish New Personal Communications Services, Narrowband PCS, 
GEN Docket No. 90-314, ET Docket No. 92-100, PP Docket No. 93-253, Second Report and Order and Second 
Further Notice of Proposed Rulemaking, 15 FCC Rcd 10456 (2000).
82 See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications 
Bureau, FCC, from Aida Alvarez, Administrator, SBA (Dec. 2, 1998).
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22. 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.  Under this 
category, the SBA deems a wireless business to be small if it has 1,500 or fewer employees. 83 The 
Commission estimates that nearly all such licensees are small businesses under the SBA’s small business 
size standard.
23. 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.84 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.85 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.86  
Auctions of Phase II licenses commenced on September 15, 1998, and closed on October 22, 1998.87 In 
the first auction, 908 licenses were auctioned in three different-sized geographic areas: three nationwide 
licenses, 30 Regional Economic Area Group (EAG) Licenses, and 875 Economic Area (EA) Licenses.  Of 
the 908 licenses auctioned, 693 were sold.  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.88  
24. 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.89 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 
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 
  
83 13 C.F.R. § 121.201, NAICS code 517212.
84 220 MHz Third Report and Order, 12 FCC Rcd at 11068-70, at paras. 291-95.
85 Id. at 11068-70, para. 291.
86 See letter to D. Phythyon, Chief, Wireless Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, 
SBA (Jan. 6, 1998).
87 See generally 220 MHz Service Auction Closes, Public Notice, 14 FCC Rcd 605 (1998).
88 Phase II 220 MHz Service Spectrum Auction Closes, Public Notice, 14 FCC Rcd 11218 (1999).
89 47 C.F.R. § 90.814(b)(1).
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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.  
25. 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.90 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 (MEA)
licenses commenced on September 6, 2000, and closed on September 21, 2000.91 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.92
26. Rural Radiotelephone Service. The Commission has not adopted a size standard for 
small businesses specific to the Rural Radiotelephone Service.93 A significant subset of the Rural 
Radiotelephone Service is the Basic Exchange Telephone Radio System (BETRS).94 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.95 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.
27. Air-Ground Radiotelephone Service. The Commission has not adopted a small business 
size standard specific to the Air-Ground Radiotelephone Service.96 We will use SBA’s small business 
size standard applicable to “Cellular and Other Wireless Telecommunications,” i.e., an entity employing 
no more than 1,500 persons.97 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.
28. Aviation and Marine Radio Services. Small businesses in the aviation and marine radio 
services use a very high frequency (VHF) marine or aircraft radio and, as appropriate, an emergency 
position-indicating radio beacon (and/or radar) or an emergency locator transmitter.  The Commission has 
  
90 See Service Rules for the 746-764 and 776-794 MHz Bands, and Revisions to part 27 of the Commission’s Rules, 
WT Docket No. 99-168, Second Report and Order, 15 FCC Rcd 5299 (2000).
91 See generally 220 MHz Service Auction Closes, Public Notice, 14 FCC Rcd 605 (1998).
92 700 MHz Guard Band Auction Closes, Public Notice, 16 FCC Rcd 4590 (2001).
93 The service is defined in section 22.99 of the Commission’s Rules, 47 C.F.R. § 22.99.
94 BETRS is defined in sections 22.757 and 22.759 of the Commission’s Rules, 47 C.F.R. §§ 22.757 and 22.759.
95 13 C.F.R. § 121.201, NAICS code 517210.
96 The service is defined in section 22.99 of the Commission’s Rules, 47 C.F.R. § 22.99.
97 13 C.F.R. § 121.201, NAICS code 517212 (This category will be changed for purposes of the 2007 Census to 
“Wireless Telecommunications Carriers (except Satellite),” NAICS code 517210.).
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not developed a small business size standard specifically applicable to these small businesses.  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.98 Most applicants for 
recreational licenses are individuals.  Approximately 581,000 ship station licensees and 131,000 aircraft 
station licensees operate domestically and are not subject to the radio carriage requirements of any statute 
or treaty.  For purposes of our evaluations in this analysis, we estimate that there are up to approximately 
712,000 licensees that are small businesses (or individuals) under the SBA standard.  In addition, between 
December 3, 1998 and December 14, 1998, the Commission held an auction of 42 VHF Public Coast 
licenses in the 157.1875-157.4500 MHz (ship transmit) and 161.775-162.0125 MHz (coast transmit) 
bands.  For purposes of the auction, the Commission defined a “small” business as an entity that, together 
with controlling interests and affiliates, has average gross revenues for the preceding three years not to 
exceed $15 million dollars.  In addition, a “very small” business is one that, together with controlling 
interests and affiliates, has average gross revenues for the preceding three years not to exceed $3 million 
dollars.99 There are approximately 10,672 licensees in the Marine Coast Service, and the Commission 
estimates that almost all of them qualify as “small” businesses under the above special small business size 
standards.  
29. Fixed Microwave Services. Fixed microwave services include common carrier,100
private operational-fixed,101 and broadcast auxiliary radio services.102 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.103 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 
  
98 13 C.F.R. § 121.201, NAICS code 517212 (This category will be changed for purposes of the 2007 Census to 
“Wireless Telecommunications Carriers (except Satellite),” NAICS code 517210.).
99 Amendment of the Commission’s Rules Concerning Maritime Communications, PR Docket No. 92-257, Third 
Report and Order and Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998).
100 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).
101 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.
102 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.
103 13 C.F.R. § 121.201, NAICS code 517212 (This category will be changed for purposes of the 2007 Census to 
“Wireless Telecommunications Carriers (except Satellite),” NAICS code 517210.).
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carrier microwave fixed licensee category includes some large entities.
30. 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.104 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.105 Under that SBA small 
business size standard, a business is small if it has 1,500 or fewer employees.106  
31. 39 GHz Service. The Commission created a special small business size standard for 39 
GHz licenses – an entity that has average gross revenues of $40 million or less in the three previous 
calendar years.107 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.108 The SBA has approved these small business size standards.109 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 our action.
32. Wireless Cable Systems. Wireless cable systems use 2 GHz band frequencies of the 
Broadband Radio Service (“BRS”), formerly Multipoint Distribution Service (“MDS”),110 and the 
Educational Broadband Service (“EBS”), formerly Instructional Television Fixed Service (“ITFS”),111 to 
transmit video programming and provide broadband services to residential subscribers.112 These services 
were originally designed for the delivery of multichannel video programming, similar to that of traditional 
cable systems, but over the past several years licensees have focused their operations instead on providing 
  
104 This service is governed by Subpart I of Part 22 of the Commission’s Rules.  See 47 C.F.R. §§ 22.1001-22.1037.
105 13 C.F.R. § 121.201, NAICS code 517212 (This category will be changed for purposes of the 2007 Census to 
“Wireless Telecommunications Carriers (except Satellite),” NAICS code 517210.).
106 Id. 
107 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, PP Docket No. 93-253, Report and Order, 12 FCC Rcd 18600 (1998).
108 Id.
109 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).
110 MDS, also known as Multichannel Multipoint Distribution Service (“MMDS”), is regulated by Part 21 of the 
Commission’s rules; see 47 C.F.R. Part 21, subpart K; and has been renamed the Broadband Radio Service (BRS); 
see Amendment of Parts 1, 21, 73, 74 and 101 of the Commission’s Rules to Facilitate the Provision of Fixed and 
Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands; 
Part 1 of the Commission's Rules - Further Competitive Bidding Procedures; Amendment of Parts 21 and 74 to 
Enable Multipoint Distribution Service and the Instructional Television Fixed Service Amendment of Parts 21 and 
74 to Engage in Fixed Two-Way Transmissions; Amendment of Parts 21 and 74 of the Commission's Rules With 
Regard to Licensing in the Multipoint Distribution Service and in the Instructional Television Fixed Service for the 
Gulf of Mexico, 19 FCC Rcd 14165 (2004) (“MDS/ITFS Order”).
111 ITFS systems are regulated by Part 74 of the Commission’s rules; see 47 C.F.R. Part 74, subpart I.  ITFS, an 
educational service, has been renamed the Educational Broadband Service (EBS); see MDS/ITFS Order, 19 FCC 
Rcd 14165.  ITFS licensees, however, are permitted to lease spectrum for MDS operation.
112  See Annual Assessment of the Status of Competition in the Market for the Delivery of Video Programming, 
Eleventh Annual Report, 20 FCC Rcd 2507, 2565 ¶ 131 (2006) (“2006 Cable Competition Report”).
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two-way high-speed Internet access services.113 We estimate that the number of wireless cable 
subscribers is approximately 100,000, as of March 2005.  Local Multipoint Distribution Service 
(“LMDS”) is a fixed broadband point-to-multipoint microwave service that provides for two-way video 
telecommunications.114 As described below, the SBA small business size standard for the broad census 
category of Cable and Other Program Distribution, which consists of such entities generating $13.5 
million or less in annual receipts, appears applicable to MDS, ITFS and LMDS.115 Other standards also 
apply, as described.
33. The Commission has defined small MDS (now BRS) and LMDS entities in the context of 
Commission license auctions.  In the 1996 MDS auction,116 the Commission defined a small business as 
an entity that had annual average gross revenues of less than $40 million in the previous three calendar 
years.117 This definition of a small entity in the context of MDS auctions has been approved by the 
SBA.118 In the MDS auction, 67 bidders won 493 licenses.  Of the 67 auction winners, 61 claimed status 
as a small business.  At this time, the Commission estimates that of the 61 small business MDS auction 
winners, 48 remain small business licensees.  In addition to the 48 small businesses that hold BTA 
authorizations, there are approximately 392 incumbent MDS licensees that have gross revenues that are 
not more than $40 million and are thus considered small entities.119 MDS licensees and wireless cable 
operators that did not receive their licenses as a result of the MDS auction fall under the SBA small 
business size standard for Cable and Other Program Distribution.  Information available to us indicates 
that there are approximately 850 of these licensees and operators that do not generate revenue in excess of 
$13.5 million annually.  Therefore, we estimate that there are approximately 850 small entity MDS (or 
BRS) providers, as defined by the SBA and the Commission’s auction rules.
34. Educational institutions are included in this analysis as small entities; however, the 
Commission has not created a specific small business size standard for ITFS (now EBS).120 We estimate 
that there are currently 2,032 ITFS (or EBS) licensees, and all but 100 of the licenses are held by 
educational institutions.  Thus, we estimate that at least 1,932 ITFS licensees are small entities. 
35. In the 1998 and 1999 LMDS auctions,121 the Commission defined a small business as an 
entity that has annual average gross revenues of less than $40 million in the previous three calendar 
  
113  Id.
114  See Local Multipoint Distribution Service, 12 FCC Rcd 12545 (1997). 
115 13 C.F.R. § 121.201, NAICS code 517510.
116 MDS Auction No. 6 began on November 13, 1995, and closed on March 28, 1996.  (67 bidders won 493 
licenses.)
117 47 C.F.R. § 21.961(b)(1).
118  See ITFS Order, 10 FCC Rcd at 9589.
119 47 U.S.C. § 309(j).  Hundreds of stations were licensed to incumbent MDS licensees prior to implementation of 
Section 309(j) of the Communications Act of 1934, 47 U.S.C. § 309(j).  For these pre-auction licenses, the 
applicable standard is SBA’s small business size standards for “other telecommunications” (annual receipts of $13.5 
million or less).  See 13 C.F.R. § 121.201, NAICS code 517910.
120 In addition, the term “small entity” under 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.
121 The Commission has held two LMDS auctions:  Auction 17 and Auction 23.  Auction No. 17, the first LMDS 
auction, began on February 18, 1998, and closed on March 25, 1998.  (104 bidders won 864 licenses.)  Auction No. 
23, the LMDS re-auction, began on April 27, 1999, and closed on May 12, 1999.  (40 bidders won 161 licenses.)
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years.122 Moreover, the Commission added an additional classification for a “very small business,” which 
was defined as an entity that had annual average gross revenues of less than $15 million in the previous 
three calendar years.123 These definitions of “small business” and “very small business” in the context of 
the LMDS auctions have been approved by the SBA.124 In the first LMDS auction, 104 bidders won 864 
licenses.  Of the 104 auction winners, 93 claimed status as small or very small businesses.  In the LMDS 
re-auction, 40 bidders won 161 licenses.  Based on this information, we believe that the number of small 
LMDS licenses will include 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 as defined by the SBA and the Commission’s 
auction rules.
36. 218-219 MHz Service. The first auction of 218-219 MHz spectrum resulted in 170 
entities winning licenses for 594 Metropolitan Statistical Area (MSA) 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.125 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.126 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.127 These size standards will be used in future auctions of 218-219 MHz spectrum.
37. 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 
more than 1,500 persons.128 We believe that there are only two licensees in the 24 GHz band that were 
relocated from the 18 GHz band, Teligent129 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.
38. 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 
  
122  See LMDS Order, 12 FCC Rcd at 12545.
123 Id.
124 See Letter to Daniel Phythyon, Chief, Wireless Telecommunications Bureau (FCC) from A. Alvarez, 
Administrator, SBA (January 6, 1998).
125 Implementation of Section 309(j) of the Communications Act – Competitive Bidding, PP Docket No. 93-253, 
Fourth Report and Order, 9 FCC Rcd 2330 (1994).
126 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, 15 FCC Rcd 1497 (1999).
127 Id.
128 13 C.F.R. § 121.201, NAICS code 517212 (This category will be changed for purposes of the 2007 Census to 
“Wireless Telecommunications Carriers (except Satellite),” NAICS code 517210.).
129 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.
Federal Communications Commission FCC 08-148
19
affiliates, has average annual gross revenues for the three preceding years not in excess of $15 million.130  
“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.131 The SBA 
has approved these small business size standards.132 These size standards will apply to the future auction, 
if held. 
2. Satellite Service Providers
39. Satellite Telecommunications.  Since 2007, the SBA has recognized satellite firms within 
this revised category, with a small business size standard of $13.5 million.133 The most current Census 
Bureau data, however, are from the (last) economic census of 2002, and we will use those figures to 
gauge the prevalence of small businesses in this category.  Those size standards are for the two census 
categories of “Satellite Telecommunications” and “Other Telecommunications.”  Under both prior 
categories, such a business was considered small if it had, as now, $13.5 million or less in average annual 
receipts.134
40. The first category of Satellite Telecommunications “comprises establishments primarily 
engaged in providing point-to-point telecommunications services to other establishments in the 
telecommunications and broadcasting industries by forwarding and receiving communications signals via 
a system of satellites or reselling satellite telecommunications.”135 For this category, Census Bureau data 
for 2002 show that there were a total of 371 firms that operated for the entire year.136 Of this total, 307 
firms had annual receipts of under $10 million, and 26 firms had receipts of $10 million to 
$24,999,999.137 Consequently, we estimate that the majority of Satellite Telecommunications firms are 
small entities that might be affected by our action.
41. The second category of Other Telecommunications “comprises establishments primarily 
engaged in (1) providing specialized telecommunications applications, such as satellite tracking, 
communications telemetry, and radar station operations; or (2) providing satellite terminal stations and 
associated facilities operationally connected with one or more terrestrial communications systems and 
capable of transmitting telecommunications to or receiving telecommunications from satellite systems.”138  
For this category, Census Bureau data for 2002 show that there were a total of 332 firms that operated for 
  
130 Amendments to Parts 1, 2, 87 and 101 of the Commission’s Rules to License Fixed Services at 24 GHz, WT 
Docket No. 99-327, Report and Order, 15 FCC Rcd 16934, 16967 at para. 77 (2000); see also 47 C.F.R. § 
101.538(a)(2).
131 Amendments to Parts 1, 2, 87 and 101 of the Commission’s Rules to License Fixed Services at 24 GHz, WT 
Docket No. 99-327, Report and Order, 15 FCC Rcd 16934, 16967 at para. 77 (2000); see also 47 C.F.R. § 
101.538(a)(1).
132 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).
133 13 C.F.R. § 121.201, NAICS code 517410 (2007).
134 13 C.F.R. § 121.201, NAICS codes 517410 and 517910 (2002).  
135 U.S. Census Bureau, 2002 NAICS Definitions, “517410 Satellite Telecommunications”; 
http://www.census.gov/epcd/naics02/def/NDEF517.HTM. 
136 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, “Establishment and Firm Size 
(Including Legal Form of Organization),” Table 4, NAICS code 517410 (issued Nov. 2005).
137  Id.  An additional 38 firms had annual receipts of $25 million or more.
138 U.S. Census Bureau, 2002 NAICS Definitions, “517910 Other Telecommunications”;  
http://www.census.gov/epcd/naics02/def/NDEF517.HTM. 
Federal Communications Commission FCC 08-148
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the entire year.139 Of this total, 303 firms had annual receipts of under $10 million and 15 firms had 
annual receipts of $10 million to $24,999,999.140 Consequently, we estimate that the majority of Other 
Telecommunications firms are small entities that might be affected by our action.
3. Cable and OVS Operators
42. In 2007, the SBA recognized new census categories for small cable entities.141 However, 
there is no census data yet in existence that may be used to calculate the number of small entities that fit 
these definitions.  Therefore, we will use prior definitions of these types of entities in order to estimate 
numbers of potentially-affected small business entities.  In addition to the estimates provided above, we 
consider certain additional entities that may be affected by the data collection from broadband service 
providers.  Because section 706 requires us to monitor the deployment of broadband regardless of 
technology or transmission media employed, we anticipate that some broadband service providers will not 
provide telephone service.  Accordingly, we describe below other types of firms that may provide 
broadband services, including cable companies, MDS providers, and utilities, among others.
43. Cable and Other Program Distribution.  The Census Bureau defines this category as 
follows:  “This industry comprises establishments primarily engaged as third-party distribution systems 
for broadcast programming. The establishments of this industry deliver visual, aural, or textual 
programming received from cable networks, local television stations, or radio networks to consumers via 
cable or direct-to-home satellite systems on a subscription or fee basis. These establishments do not 
generally originate programming material.”142 The SBA has developed a small business size standard for 
Cable and Other Program Distribution, which is:  all such firms having $13.5 million or less in annual 
receipts.143 According to Census Bureau data for 2002, there were a total of 1,191 firms in this category 
that operated for the entire year.144 Of this total, 1,087 firms had annual receipts of under $10 million, 
and 43 firms had receipts of $10 million or more but less than $25 million.145 Thus, under this size 
standard, the majority of firms can be considered small.
44. Cable Companies and Systems. The Commission has also developed its own small 
business size standards, for the purpose of cable rate regulation.  Under the Commission’s rules, a “small 
cable company” is one serving 400,000 or fewer subscribers, nationwide.146 Industry data indicate that, of 
  
139 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, “Establishment and Firm Size 
(Including Legal Form of Organization),” Table 4, NAICS code 517910 (issued Nov. 2005).
140  Id.  An additional 14 firms had annual receipts of $25 million or more.
141 13 C.F.R. § 121.201.
142 U.S. Census Bureau, 2002 NAICS Definitions, “517510 Cable and Other Program Distribution”; 
http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
143 13 C.F.R. § 121.201, NAICS code 517510 (This category will be changed for purposes of the 2007 Census to 
“Wired Telecommunications Carriers,” NAICS code 517110.).
144 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, Table 4, Receipts Size of Firms for the 
United States:  2002, NAICS code 517510 (issued November 2005).
145 Id.  An additional 61 firms had annual receipts of $25 million or more.
146 47 C.F.R. § 76.901(e).  The Commission determined that this size standard equates approximately to a size 
standard of $100 million or less in annual revenues.  Implementation of Sections of the 1992 Cable Act: Rate 
Regulation, Sixth Report and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393, 7408 (1995).
Federal Communications Commission FCC 08-148
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1,076 cable operators nationwide, all but eleven are small under this size standard.147 In addition, under 
the Commission’s rules, a “small system” is a cable system serving 15,000 or fewer subscribers.148  
Industry data indicate that, of 7,208 systems nationwide, 6,139 systems have under 10,000 subscribers, 
and an additional 379 systems have 10,000-19,999 subscribers.149 Thus, under this second size standard, 
most cable systems are small.    
45. Cable System Operators.  The Communications Act of 1934, as amended, also contains a 
size standard for small cable system operators, which is “a cable operator that, directly or through an 
affiliate, serves in the aggregate fewer than 1 percent of all subscribers in the United States and is not 
affiliated with any entity or entities whose gross annual revenues in the aggregate exceed 
$250,000,000.”150 The Commission has determined that an operator serving fewer than 677,000 
subscribers shall be deemed a small operator, if its annual revenues, when combined with the total annual 
revenues of all its affiliates, do not exceed $250 million in the aggregate.151 Industry data indicate that, of 
1,076 cable operators nationwide, all but ten are small under this size standard.152 We note that the 
Commission neither requests nor collects information on whether cable system operators are affiliated 
with entities whose gross annual revenues exceed $250 million,153 and therefore we are unable to estimate 
more accurately the number of cable system operators that would qualify as small under this size 
standard.  
46. Open Video Services. Open Video Service (OVS) systems provide subscription 
services.154 As noted above, the SBA has created a small business size standard for Cable and Other 
Program Distribution.155 This standard provides that a small entity is one with $13.5 million or less in 
annual receipts.  The Commission has certified approximately 45 OVS operators to serve 75 areas, and 
some of these are currently providing service.156 Affiliates of Residential Communications Network, Inc. 
(RCN) received approval to operate OVS systems in New York City, Boston, Washington, D.C., and 
other areas.  RCN has sufficient revenues to assure that they do not qualify as a small business entity.  
Little financial information is available for the other entities that are authorized to provide OVS and are 
  
147 These data are derived from  R.R. Bowker, Broadcasting & Cable Yearbook 2006, “Top 25 Cable/Satellite 
Operators,” pages A-8 & C-2 (data current as of June 30, 2005);  Warren Communications News, Television & 
Cable Factbook 2006, “Ownership of Cable Systems in the United States,” pages D-1805 to D-1857.
148 47 C.F.R. § 76.901(c).  
149 Warren Communications News, Television & Cable Factbook 2006, “U.S. Cable Systems by Subscriber Size,” 
page F-2 (data current as of Oct. 2005). The data do not include 718 systems for which classifying data were not 
available.
150 47 U.S.C. § 543(m)(2); see 47 C.F.R. § 76.901(f) & nn. 1-3.
151 47 C.F.R. § 76.901(f); see FCC Announces New Subscriber Count for the Definition of Small Cable Operator, 
Public Notice, 16 FCC Rcd 2225 (Cable Services Bureau 2001).
152 These data are derived from:  R.R. Bowker, Broadcasting & Cable Yearbook 2006, “Top 25 Cable/Satellite 
Operators,” pages A-8 & C-2 (data current as of June 30, 2005); Warren Communications News, Television & 
Cable Factbook 2006, “Ownership of Cable Systems in the United States,” pages D-1805 to D-1857.
153 The Commission does receive such information on a case-by-case basis if a cable operator appeals a local 
franchise authority’s finding that the operator does not qualify as a small cable operator pursuant to § 76.901(f) of 
the Commission’s rules.  See 47 C.F.R. § 76.909(b).
154 See 47 U.S.C. § 573.
155 13 C.F.R. § 121.201, NAICS code 517110.
156 See http://www.fcc.gov/mb/ovs/csovscer.html (current as of February 2007).
Federal Communications Commission FCC 08-148
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not yet operational.  Given that some entities authorized to provide OVS service have not yet begun to 
generate revenues, the Commission concludes that up to 44 OVS operators (those remaining) might 
qualify as small businesses that may be affected by the rules and policies adopted herein.
4. Electric Power Generation, Transmission and Distribution
47. Electric Power Generation, Transmission and Distribution. The Census Bureau defines 
this category as follows:  “This industry group comprises establishments primarily engaged in generating, 
transmitting, and/or distributing electric power. Establishments in this industry group may perform one or 
more of the following activities: (1) operate generation facilities that produce electric energy; (2) operate 
transmission systems that convey the electricity from the generation facility to the distribution system; 
and (3) operate distribution systems that convey electric power received from the generation facility or 
the transmission system to the final consumer.”157 The SBA has developed a small business size standard 
for firms in this category:  “A firm is small if, including its affiliates, it is primarily engaged in the 
generation, transmission, and/or distribution of electric energy for sale and its total electric output for the 
preceding fiscal year did not exceed 4 million megawatt hours.”158 According to Census Bureau data for 
2002, there were 1,644 firms in this category that operated for the entire year.159 Census data do not track 
electric output and we have not determined how many of these firms fit the SBA size standard for small, 
with no more than 4 million megawatt hours of electric output.  Consequently, we estimate that 1,644 or 
fewer firms may be considered small under the SBA small business size standard.   
5. Internet Service Providers, Web Portals and Other Information Services
48. In 2007, the SBA recognized two new small business, economic census categories.  They 
are (1) Internet Publishing and Broadcasting and Web Search Portals,160 and (2) All Other Information 
Services.161 However, there is no census data yet in existence that may be used to calculate the number of 
small entities that fit these definitions.  Therefore, we will use prior definitions of these types of entities in 
order to estimate numbers of potentially-affected small business entities.
49. Internet Service Providers.  The SBA has developed a small business size standard for 
Internet Service Providers (ISPs).  ISPs “provide clients access to the Internet and generally provide 
related services such as web hosting, web page designing, and hardware or software consulting related to 
Internet connectivity.”162 Under the SBA size standard, such a business is small if it has average annual 
receipts of $23 million or less.163 According to Census Bureau data for 2002, there were 2,529 firms in 
this category that operated for the entire year. 164 Of these, 2,437 firms had annual receipts of under $10 
  
157 U.S. Census Bureau, 2002 NAICS Definitions, “2211 Electric Power Generation, Transmission and 
Distribution”; http://www.census.gov/epcd/naics02/def/NDEF221.HTM.
158 13 C.F.R. § 121.201, NAICS codes 221111, 221112, 221113, 221119, 221121, 221122, footnote 1.
159 U S. Census Bureau, 2002 Economic Census, Subject Series:  Utilities, “Establishment and Firm Size (Including 
Legal Form of Organization),” Table 4, NAICS codes 221111, 221112, 221113, 221119, 221121, 221122 (issued 
Nov. 2005).
160 13 C.F.R. § 121.201, NAICS code 519130 (establishing a $500,000 revenue ceiling).
161 13 C.F.R. § 121.201, NAICS code 519190 (establishing a $6.5 million revenue ceiling).
162 U.S. Census Bureau, “2002 NAICS Definitions: 518111 Internet Service Providers”;  
http://www.census.gov/epcd/naics02/def/NDEF518.HTM. 
163 13 C.F.R. § 121.201, NAICS code 518111.
164 U.S. Census Bureau, 2002 Economic Census, Subject Series:  Information, “Establishment and Firm Size 
(Including Legal Form of Organization),” Table 4, NAICS code 518111 (issued Nov. 2005).
Federal Communications Commission FCC 08-148
23
million, and an additional 47 firms had receipts of between $10 million and $24,999,999.  Consequently, 
we estimate that the majority of these firms are small entities that may be affected by our action.  
50. Web Search Portals.  Our action pertains to interconnected VoIP services, which could 
be provided by entities that provide other services such as email, online gaming, web browsing, video 
conferencing, instant messaging, and other, similar IP-enabled services.  The Commission has not 
adopted a size standard for entities that create or provide these types of services or applications.  
However, the Census Bureau has identified firms that “operate web sites that use a search engine to 
generate and maintain extensive databases of Internet addresses and content in an easily searchable 
format.  Web search portals often provide additional Internet services, such as e-mail, connections to 
other web sites, auctions, news, and other limited content, and serve as a home base for Internet users.”165  
The SBA has developed a small business size standard for this category; that size standard is $6.5 million 
or less in average annual receipts.166 According to Census Bureau data for 2002, there were 342 firms in 
this category that operated for the entire year.167 Of these, 303 had annual receipts of under $5 million, 
and an additional 15 firms had receipts of between $5 million and $9,999,999.  Consequently, we 
estimate that the majority of these firms are small entities that may be affected by our action.  
51. Data Processing, Hosting, and Related Services. Entities in this category “primarily … 
provid[e] infrastructure for hosting or data processing services.”168 The SBA has developed a small 
business size standard for this category; that size standard is $23 million or less in average annual 
receipts.169 According to Census Bureau data for 2002, there were 6,877 firms in this category that 
operated for the entire year.170 Of these, 6,418 had annual receipts of under $10 million, and an additional 
251 firms had receipts of between $10 million and $24,999,999.  Consequently, we estimate that the 
majority of these firms are small entities that may be affected by our action.
52. All Other Information Services.  “This industry comprises establishments primarily 
engaged in providing other information services (except new syndicates and libraries and archives).”171  
Our action pertains to interconnected VoIP services, which could be provided by entities that provide 
other services such as email, online gaming, web browsing, video conferencing, instant messaging, and 
other, similar IP-enabled services.  The SBA has developed a small business size standard for this 
category; that size standard is $6.5 million or less in average annual receipts.172 According to Census 
Bureau data for 2002, there were 155 firms in this category that operated for the entire year.173 Of these, 
  
165 U.S. Census Bureau, “2002 NAICS Definitions:  518112 Web Search Portals”; 
http://www.census.gov/epcd/naics02/def/NDEF518.HTM.
166 13 C.F.R. § 121.201, NAICS code 518112.
167 U.S. Census Bureau, 2002 Economic Census, Subject Series:  Information, “Establishment and Firm Size 
(Including Legal Form of Organization),” Table 4, NAICS code 518112 (issued Nov. 2005).
168 U.S. Census Bureau, “2002 NAICS Definitions:  518210 Data Processing, Hosting, and Related Services”; 
http://www.census.gov/epcd/naics02/def/NDEF518.HTM. 
169 13 C.F.R. § 121.201, NAICS code 518210.
170 U.S. Census Bureau, 2002 Economic Census, Subject Series:  Information, “Establishment and Firm Size 
(Including Legal Form of Organization),” Table 4, NAICS code 518210 (issued Nov. 2005). 
171 U.S. Census Bureau, “2002 NAICS Definitions:  519190 All Other Information Services”; 
http://www.census.gov/epcd/naics02/def/NDEF519.HTM.
172 13 C.F.R. § 121.201, NAICS code 519190.
173 U.S. Census Bureau, 1997 Economic Census, Subject Series:  Information, “Establishment and Firm Size 
(Including Legal Form of Organization),” Table 4, NAICS code 519190 (issued Nov. 2005).
Federal Communications Commission FCC 08-148
24
138 had annual receipts of under $5 million, and an additional four firms had receipts of between $5 
million and $9,999,999.  Consequently, we estimate that the majority of these firms are small entities that 
may be affected by our action.  
53. Internet Publishing and Broadcasting.  “This industry comprises establishments engaged 
in publishing and/or broadcasting content on the Internet exclusively.  These establishments do not 
provide traditional (non-Internet) versions of the content that they publish or broadcast.”174 The SBA has 
developed a small business size standard for this census category; that size standard is 500 or fewer 
employees.175 According to Census Bureau data for 2002, there were 1,362 firms in this category that 
operated for the entire year.176 Of these, 1,351 had employment of 499 or fewer employees, and six firms 
had employment of between 500 and 999.  Consequently, we estimate that the majority of these firms 
small entities that may be affected by our action. 
D. Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements for Small Entities
54. In today’s Order on Reconsideration, we expand the requirements adopted in the Form 
477 Order to require wired, terrestrial fixed wireless, and satellite broadband providers to report the 
percentage of residential broadband connections they have in service in individual Census Tracts.  While 
both large and small entities will be subject to these reporting requirements, the task is comparably easier 
for smaller entities that provide service to fewer customers and in more concentrated geographic areas, as 
the reporting procedures are broken down by geographic region and type of service.  Few skills beyond 
the basic accounting skills already required of Form 477 filers, including small entities, are required to 
comply with the new and modified reporting and recordkeeping requirements adopted in this Order on 
Reconsideration.
E. Steps Taken to Minimize Significant Economic Impact on Small Entities, and
Significant Alternatives Considered
55. The RFA requires an agency to describe any significant alternatives that it has considered 
in developing its approach, which may include (among others) the following four alternatives:  (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.177
56. In the Data Gathering Notice, we invited comment on a variety of proposals that would 
impose further reporting and recordkeeping requirements, including alternatives to the measures taken in 
this Order on Reconsideration.178 We sought comment whether there are any alternatives to the proposals 
in the order that would also serve the objective of improving broadband data collection,179 and we invited 
  
174 U.S. Census Bureau, “2002 NAICS Definitions:  516110 Internet Publishing and Broadcasting”; 
http://www.census.gov/epcd/naics02/def/NDEF516.HTM. 
175 13 C.F.R. § 121.201, NAICS code 516110. 
176 U.S. Census Bureau, 2002 Economic Census, Subject Series:  Information, “Establishment and Firm Size 
(Including Legal Form of Organization),” Table 5, NAICS code 516110 (issued Nov. 2005).
177 5 U.S.C. § 603(c).
178 See Data Gathering Notice at section III.B.
179 See id. at para. 38.
Federal Communications Commission FCC 08-148
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comment on ways to mitigate the burden that might be imposed on small entities.180 We sought comment 
on how the proposals might be tailored to mitigate the burden on smaller entities but nevertheless obtain 
data that would enable the Commission to determine whether subscribers in those territories have access 
to broadband services.181 To analyze the impact on small entities, the Data Gathering Notice asked 
whether entities maintain the required information in billing or marketing databases, and asked 
commenters to demonstrate the burden for the entities to collect and report this type of information.182
57. We find that the approach adopted in today’s Order on Reconsideration best balances the 
costs of information collection and the public interest benefits of more detailed information on broadband 
deployment.  As in the Form 477 Order, we find that granting a blanket exemption to small carriers 
would undercut the benefits of our revised information collection by depriving the Commission and other 
parties of adequate information on broadband deployment and adoption in rural, unserved, and 
underserved areas of the nation, the areas where additional information is most needed and would be 
likely to have the greatest impact.  Additionally, we note that all Form 477 filers must currently submit, 
for each state in which they provide service, the percentage of their broadband subscribers that are 
residential.  We conclude that any incremental burden associated with providing this information on the 
Census Tract basis is outweighed by the utility of the data we will obtain.  We thus apply the revised 
requirement to all broadband service providers, regardless of size.
58. Report to Congress: The Commission will send a copy of the Order on 
Reconsideration, including this Supplemental FRFA, in a report to be sent to Congress pursuant to the 
Congressional Review Act.183 In addition, the Commission will send a copy of the Order on 
Reconsideration, including this Supplemental FRFA, to the Chief Counsel for Advocacy of the SBA.  A 
copy of the Order on Reconsideration and Supplemental FRFA (or summaries thereof) will also be 
published in the Federal Register.184
  
180 See id. at para. 24; see id. at section III.
181 See id. at para. 24.
182 See, e.g., id. at Appendix, para. 59; id. at para. 31.
183 See 5 U.S.C. § 801(a)(1)(A).
184 See 5 U.S.C. § 604(b).
Federal Communications Commission FCC 08-148
STATEMENT OF 
COMMISSIONER MICHAEL J. COPPS
Re: Development of Nationwide Broadband Data to Evaluate Reasonable and Timely Deployment of 
Advanced Services to All Americans, Improvement of Wireless Broadband Subscribership Data 
on Interconnected Voice over Internet Protocol (VoIP) Subscribership, Order on 
Reconsideration WC Docket No. 07-38
The Commission is finally launching an effort to collect more granular data on broadband 
deployment in this country. As I said in March when we approved the broadband data collection Order, it 
is essential that the Commission be able to distinguish between residential and business broadband 
connections.  Unfortunately, the Commission declined at that time to do so.  I’m pleased that the 
Commission has reconsidered its position and will now require that the data provided identify the extent 
to which the broadband service is residential rather than business.
Federal Communications Commission FCC 08-148
STATEMENT OF 
COMMISSIONER JONATHAN S. ADELSTEIN
Re:  Development of Nationwide Broadband Data to Evaluate Reasonable and Timely 
Deployment of Advanced Services to All Americans, Improvement of Wireless Broadband 
Subscribership Data, and Development of Data on Interconnected Voice over Internet 
Protocol (VoIP) Subscribership, Order on Reconsideration WC Docket No. 07-38
Earlier this year, the Commission took an important step by responding to the chorus of voices 
asking us to collect more accurate and reliable data about broadband deployment.  This Commission’s 
new data gathering effort will lay the foundation for developing effective broadband policies.  I’ve long 
said that a key component of this new broadband data program must include collecting more granular data 
that enables us to determine who is participating in the broadband revolution and who is not.  Though we 
made important strides toward a more localized understanding of broadband deployment in our March 
2008 Order, this Reconsideration Order takes a critical additional step.  In fact, without this fundamental 
change, the usefulness of the improvements we made in March would have been severely compromised.  
By now distinguishing between residential and business customers at a more granular level, we will be 
much better positioned to understand the factors that affect broadband adoption.  So, I thank the Chairman 
and my fellow Commissioners for their willingness to address this concern and look forward to the swift 
implementation of the new data collection program.