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76414 Federal Register / Vol. 70, No.

247 / Tuesday, December 27, 2005 / Rules and Regulations

Federal Communications Commission. 20554, telephone 202–488–5300, bidding credits. In addition, the
Marlene H. Dortch, facsimile 202–488–5563, or you may Commission continues to believe that
Secretary. contact BCPI at its Web site: http:// the operation of a commercial air-
[FR Doc. 05–24485 Filed 12–23–05; 8:45 am] www.BCPIWEB.com. When ordering ground service may require lower
BILLING CODE 6712–01–P
documents from BCPI please provide capital expenditures than other
the appropriate FCC document number nationwide services. Therefore, the
(for example, FCC 05–202, Report and Commission finds that bidding credits
FEDERAL COMMUNICATIONS Order). The full text may also be should be made available to small
COMMISSION downloaded at: http://www.fcc.gov. businesses to assist them with attracting
Alternative formats are available to capital.
47 CFR Part 22 persons with disabilities by sending an 4. The Commission adopts its
[WT Docket Nos. 03–103, 05–42; FCC 05– e-mail to fcc504@fcc.gov or call the proposed small business definitions for
202] Consumer & Governmental Affairs the 800 MHz commercial air-ground
Bureau at 202–418–0530 (voice), or service. Thus, for this service the
Air-Ground Telecommunications 202–418–0432 (tty). Commission will define a small
Services business as an entity with average
Synopsis of the Report and Order
annual gross revenues for the three
AGENCY: Federal Communications A. Incorporation of the Part 1 preceding years not exceeding $40
Commission. Standardized Auction Rules million, and the Commission will define
ACTION: Final rule. a very small business as an entity with
1. On December 15, 2004, the
Commission adopted a Report and average annual gross revenues for the
SUMMARY: In this document the Federal
Order and Notice of Proposed three preceding years not exceeding $15
Communications Commission
Rulemaking, WT Docket Nos. 03–103 million. The Commission will offer a 15
(‘‘Commission’’) adopts competitive
and 05–42, 70 FR 19293 (April 13, 2005) percent bidding credit for small
bidding rules for the 800 MHz
and 70 FR 19377 (April 13, 2005). In the businesses and a 25 percent bidding
commercial Air-Ground Radiotelephone
Notice of Proposed Rulemaking, the credit for very small businesses, as set
Service and the 400 MHz general
Commission proposed to conduct forth in the standardized schedule of
aviation Air-Ground Radiotelephone
auctions of both commercial and general bidding credits at 47 CFR 1.2110(f)(2).
Service. The Commission will auction
aviation air-ground licenses in The Commission rejects the arguments
licenses in both of these services in
conformity with the general competitive of Space Data Corporation and AirCell,
conformity with the general competitive
bidding rules in part 1, subpart Q, of the Inc., in favor of higher bidding credit
bidding rules. The Commission adopts
Commission’s rules, and substantially levels than those provided for in 47 CFR
small business definitions and bidding
consistent with the bidding procedures 1.2110(f)(2). The Commission concludes
credits for the 800 MHz air-ground
that have been employed in previous that neither Space Data nor AirCell has
service and concludes that bidding
Commission auctions. provided sufficient support for
credits are unnecessary for the 400 MHz
2. In this Report and Order, the departing from the part 1 bidding credit
air-ground service.
Commission adopts this proposal. schedule in the 800 MHz air-ground
DATES: Effective February 27, 2006. service.
Because alternative band plans are being
FOR FURTHER INFORMATION CONTACT: 5. The Commission concludes that
made available in the 800 MHz air-
Lynne Milne, Auctions and Spectrum bidding credits are unnecessary in the
ground service, with the selection of the
Access Division, Wireless auction of licenses in the 400 MHz
final band configuration to be
Telecommunications Bureau, at 202– general aviation Air-Ground
determined by applicants’ bids in the
418–7055 or via e-mail at Radiotelephone Service. If in the future
auction, the determination of whether
Lynne.Milne@fcc.gov. the Commission is presented with
individual applications are mutually
SUPPLEMENTARY INFORMATION: This is a exclusive for purposes of section 309(j) evidence of a need for bidding credits in
summary of the Report and Order of the Communications Act will be the 400 MHz air-ground service, the
portion of the Order on Reconsideration based on whether different applicants Commission will reconsider this issue.
and Report and Order, FCC 05–202, in have applied for licenses in different Procedural Matters
WT Docket Nos. 03–103 and 05–42, band configurations as well as on
adopted on December 8, 2005, and whether different applicants have A. Congressional Review Act
released on December 9, 2005. The applied for the same licenses. The 6. The Commission will send a copy
Commission is concurrently publishing Commission finds, however, that there of the Order on Reconsideration and
a summary of the Order on is no need to change the part 1 Report and Order in a report to Congress
Reconsideration in the Federal Register. competitive bidding rules for the air- and the Government Accountability
The complete text of the Report and ground services. These rules will be Office pursuant to the Congressional
Order is available for public inspection subject to any modifications to them Review Act.
and copying from 8 a.m. to 4:30 p.m. that the Commission may adopt for
Monday through Thursday or from 8 B. Final Regulatory Flexibility Analysis
auctionable services generally.
a.m. to 11:30 p.m. on Friday at the FCC 7. As required by the Regulatory
Reference Information Center, Portals II, B. Provisions for Designated Entities Flexibility Act of 1980, as amended
445 12th Street, SW., Room CY–A257, 3. The Commission concludes that it (RFA), an Initial Regulatory Flexibility
Washington, DC 20554. The Report and is appropriate to offer bidding credits in Analysis (IRFA) of the possible
Order and related Commission the 800 MHz commercial air-ground significant economic impact on a
documents may also be purchased from service. No commercial air-ground substantial number of small entities by
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the Commission’s duplicating license will authorize the use of as the policies and rules proposed in the
contractor, Best Copy and Printing, Inc. much spectrum as other nationwide Notice of Proposed Rulemaking (NPRM)
(BCPI), Portals II, 445 12th Street, SW., services for which the Commission has was incorporated therein. The
Room CY–B402, Washington, DC, declined to adopt small business Commission sought written public

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Federal Register / Vol. 70, No. 247 / Tuesday, December 27, 2005 / Rules and Regulations 76415

comment on the proposals in the NPRM, entity’’ as having the same meaning as 632(a)(2)(c), and 13 CFR 121.901–903.
including comment on the IRFA. No the terms ‘‘small business,’’ ‘‘small On January 26, 2005, the SBA indicated
comments were submitted specifically organization,’’ and ‘‘small governmental that these size standards appeared
in response to the IRFA. The jurisdiction.’’ In addition, the term reasonable and that it had no specific
Commission nonetheless discusses ‘‘small business’’ has the same meaning comments. See Letter from Gary M.
certain comments below. This present as the term ‘‘small business concern’’ Jackson, Assistant Administrator for
Final Regulatory Flexibility Analysis under the Small Business Act. A ‘‘small Size Standards, U.S. Small Business
(FRFA) conforms to the RFA. business concern’’ is one which: (1) Is Administration, to Gary D. Michaels,
independently owned and operated; (2) Deputy Chief, Auctions and Spectrum
Need for, and Objectives of, the Report
is not dominant in its field of operation; Access Division, Wireless
and Order
and (3) satisfies any additional criteria Telecommunications Bureau, Federal
8. In this Report and Order (R&O) the established by the Small Business Communications Commission, dated
Commission adopts competitive bidding Administration (SBA). January 26, 2005. No parties filed
rules for the 800 MHz commercial Air- 11. The SBA has not developed a comments opposing these size
Ground Radiotelephone Service and the specific small business size standard for standards. On September 19, 2005, the
400 MHz general aviation Air-Ground the Air-Ground Radiotelephone Service. SBA approved the Commission’s
Radiotelephone Service. Such rules are The SBA has, however, developed a request to adopt these small business
necessary because, under section 309(j) small business size standard for wireless size standards for the commercial air-
of the Communications Act, 47 U.S.C. firms within the two broad economic ground service. See Letter from Hector
309(j), the Commission is required to census categories of ‘‘Paging’’ and V. Barreto, Administrator, U.S. Small
choose among mutually exclusive ‘‘Cellular and Other Wireless Business Administration, to Gary D.
applications for spectrum licenses using Telecommunications.’’ Under both SBA Michaels, Deputy Chief, Auctions and
competitive bidding, except in certain categories, a wireless business is small Spectrum Access Division, Wireless
cases not applicable here. The if it has 1,500 or fewer employees. For Telecommunications Bureau, Federal
Commission has revised its rules the census category Cellular and Other Communications Commission, dated
governing the four megahertz of Wireless Telecommunications, Census September 19, 2005.
dedicated spectrum in the 800 MHz Bureau data for 1997 show that there
commercial Air-Ground Radiotelephone 13. The Commission does not know
were 977 firms in this category that
Service and intends to make new how many entities interested in
operated for the entire year. Of this
licenses available in this service. If total, 965 firms had employment of 999 providing commercial air-ground
mutually exclusive applications are or fewer employees, and an additional service fall within these definitions. For
filed for these licenses, the Commission 12 firms had employment of 1,000 purposes of this FRFA, the Commission
will be required to resolve such employees or more. Thus, under this assumes that a significant percentage of
applications by competitive bidding. second category and size standard, the such entities will be small businesses or
The Commission also has pending majority of firms can be considered very small businesses under these
before it nine groups of mutually small. In addition, annual FCC data definitions. The Commission has not
exclusive applications for licenses in show that 437 carriers have reported adopted small business size standards
the 400 MHz general aviation Air- that they are engaged in the provision of specific to the 400 MHz general aviation
Ground Radiotelephone Service, and it ‘‘wireless telephony,’’ which includes Air-Ground Radiotelephone Service.
will schedule an auction to resolve cellular service, personal The Commission therefore will use
these applications. In addition to communications service, and SBA’s small business size standard
adopting its proposal in the Notice of specialized mobile radio telephony. The applicable to ‘‘Cellular and Other
Proposed Rulemaking to apply its Commission has estimated that 260 of Wireless Telecommunications,’’ i.e., an
general part 1 competitive bidding rules these are small, under the SBA small entity employing no more than 1,500
to both the 800 MHz commercial air- business size standard. Finally and persons, for the 400 MHz general
ground service and the 400 MHz general more specifically, the Commission has aviation air-ground service. As noted
aviation air-ground service, the determined that currently there are 11 above, there are 11 licensees in the Air-
Commission adopts bidding credits for licensees in the Air-Ground Ground Radiotelephone Service. Ten of
small businesses in the 800 MHz Radiotelephone Service, and it estimates these operate in the general aviation
commercial air-ground service in order that almost all of them qualify as small Air-Ground Radiotelephone Service,
to help small entities attract capital to under the SBA small business size and the Commission estimates that all
participate in the 800 MHz air-ground standard for ‘‘Cellular and Other or almost all of them qualify as small
auction. Wireless Telecommunications.’’ under the SBA small business size
12. As the Commission proposed in standard. In addition, as noted above,
Summary of Significant Issues Raised by the NPRM, it adopts small business size the Commission has pending before it
Public Comments in Response to the standards specific to the 800 MHz nine groups of mutually exclusive
IRFA commercial Air-Ground Radiotelephone applications for licenses in the 400 MHz
9. No comments were submitted Service. Thus, the Commission defines general aviation Air-Ground
specifically in response to the IRFA. a small business as an entity with Radiotelephone Service; these nine
average annual gross revenues for the groups include six applicants that are
Description and Estimate of the Number three preceding years not exceeding $40 not already licensees in the general
of Small Entities to Which the Rules million, and it defines a very small aviation Air-Ground Radiotelephone
Will Apply business as an entity with average Service. As with the licensees in this
10. The RFA directs agencies to annual gross revenues for the three service, the Commission estimates that
provide a description of, and, where all or almost all of these six applicants
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preceding years not exceeding $15


feasible, an estimate of, the number of million. The Commission sought qualify as small under the SBA small
small entities that may be affected by consultation regarding these size business size standard. The Commission
the rules adopted herein. The RFA standards with the SBA, as required by also estimates that all or almost all of
generally defines the term ‘‘small the Small Business Act, 15 U.S.C. any future applicants in the 400 MHz

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76416 Federal Register / Vol. 70, No. 247 / Tuesday, December 27, 2005 / Rules and Regulations

general aviation Air-Ground gross revenues for the three preceding offered to such entities. The
Radiotelephone Service will be small years not exceeding $40 million) and Commission has reduced the burden of
under the SBA small business size very small businesses (entities with the application process wherever
standard. average annual gross revenues for the possible by requiring limited
three preceding years not exceeding $15 information on FCC Form 175 and
Description of Projected Reporting,
million). The bidding credits adopted requiring more complete information
Recordkeeping, and Other Compliance
are 15 percent for small businesses and only from auction winners on FCC Form
Requirements
25 percent for very small businesses. 601.
14. The R&O does not establish new These bidding credits are consistent
reporting, recordkeeping, or other with the Commission’s standardized Report to Congress
compliance requirements but extends schedule of bidding credits at 47 CFR 20. The Commission will send a copy
the Commission’s existing part 1 1.2110(f)(2). One party, Verizon Airfone of this R&O, including this FRFA, in a
competitive bidding rules to the Air- Inc., filed comments opposing the report to be sent to Congress pursuant
Ground Radiotelephone Service. adoption of bidding credits in the 800 to the Congressional Review Act. In
Applicants for air-ground licenses will MHz commercial air-ground auction. addition, the Commission will send a
therefore be required to file a short-form Two parties, AirCell, Inc., and Space copy of this R&O, including this FRFA,
application on FCC Form 175 to Data Corporation, filed comments to the Chief Counsel for Advocacy of the
participate in auctions, and auction requesting higher bidding credits than Small Business Administration. A copy
winners will be required to file a long- those the Commission adopts. The of this R&O and FRFA (or summaries
form application on FCC Form 601. Commission concludes that bidding thereof) will be published in the Federal
While these application requirements credits are appropriate for the 800 MHz Register.
are new with respect to applicants in commercial air-ground service and that
the air-ground services, they are the AirCell, Inc., and Space Data C. Paperwork Reduction Act of 1995
same application requirements the Corporation have not provided
Commission has applied to other sufficient support for departing from the 21. The Order on Reconsideration and
auctionable services for a number of Commission’s part 1 bidding credit Report and Order does not contain
years. schedule, which the Commission has either new or modified information
used effectively since 1997 to promote collection requirements subject to the
Steps Taken To Minimize Significant Paperwork Reduction Act of 1995
Economic Impact on Small Entities, and the participation of small businesses in
auctions and whose predictability is (PRA), Public Law 104–13. In addition,
Significant Alternatives Considered therefore, it does not contain any new
helpful to small businesses in the
15. The RFA requires an agency to business planning and capital or modified ‘‘information collection
describe any significant alternatives that fundraising process. burden for small business concerns with
it has considered in developing its 18. No parties filed comments on the fewer than 25 employees,’’ pursuant to
approach, which may include the issue of whether small business bidding the Small Business Paperwork Relief
following four alternatives (among credits would be appropriate for the 400 Act of 2002, Public Law 107–198, 44
others): ‘‘(1) The establishment of MHz general aviation Air-Ground U.S.C. 3506(c)(4).
differing compliance or reporting Radiotelephone Service. As discussed in Ordering Clauses
requirements or timetables that take into the R&O, general aviation air-ground
account the resources available to small licenses are generally held by relatively 22. Pursuant to the authority
entities; (2) the clarification, small businesses, and larger contained in sections 1, 4(i), 11, 303(r)
consolidation, or simplification of telecommunications providers do not and (y), 308, 309, and 332 of the
compliance and reporting requirements routinely apply for them. Moreover, the Communications Act of 1934, as
under the rule for such small entities; initial auction for the nine general amended, 47 U.S.C. 151, 154(i), 161,
(3) the use of performance rather than aviation licenses for which the 303(r), 303(y), 308, 309, and 332, this
design standards; and (4) an exemption Commission has received applications Order on Reconsideration and Report
from coverage of the rule, or any part will be limited to those parties with and Order is hereby adopted.
thereof, for such small entities.’’ applications already on file. Given these 23. Pursuant to sections 4(i), 303(c),
16. The Commission has taken circumstances, the Commission 303(r), and 309(j) of the
significant steps to assist small entities. concludes that bidding credits are Communications Act of 1934, as
For instance, the Commission has unnecessary in the auction of these amended, 47 U.S.C. 154(i), 303(c), 303(r)
adopted its proposal to auction both 800 licenses. If in the future the Commission and 309(j), part 22 of the Commission’s
MHz commercial and 400 MHz general is presented with evidence of a need for Rules is amended as specified in
aviation air-ground licenses in bidding credits in the 400 MHz air- Appendix B of the Report and Order,
conformity with the general competitive ground service, it will reconsider this effective 60 days after publication in the
bidding rules set forth in part 1, subpart issue, but it finds no need for bidding Federal Register.
Q, of the Commission’s Rules. The credits in this service under current
Commission believes that use of these circumstances. 24. The Commission’s Consumer and
well-established rules provides 19. Concerning compliance burdens, Governmental Affairs Bureau, Reference
consistent guidance, reduces burdens on the Commission notes that the Information Center, shall send a copy of
bidders and the Commission, and requirement of filing applications on this Order On Reconsideration and
avoids undue delay in the provision of appropriate forms is necessary in order Report and Order, including the Final
services. to ensure that applicants are qualified to Regulatory Flexibility Analysis, to the
17. In addition, to provide participate in auctions and hold Chief Counsel for Advocacy of the Small
opportunities for small entities to Business Administration.
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licenses. Certain information required


participate in the 800 MHz commercial on FCC Form 175 is also necessary to List of Subjects in 47 CFR Part 22
air-ground auction, the Commission ensure that only applicants that qualify
offers bidding credits to small as small businesses or very small Communications common carriers,
businesses (entities with average annual businesses receive the bidding credits Radio.

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Federal Register / Vol. 70, No. 247 / Tuesday, December 27, 2005 / Rules and Regulations 76417

Federal Communications Commission. commercial Air-Ground Radiotelephone Procurement Executive pursuant to 49


Marlene H. Dortch, Service license. CFR 1.50a(a)(1).
Secretary. [FR Doc. 05–24484 Filed 12–23–05; 8:45 am] Issued this 16th day of December 2005 at
Washington, DC.
Rule Changes BILLING CODE 6712–01–P
David J. Litman,
■ For the reasons discussed in the Senior Procurement Executive.
preamble, the Federal Communications DEPARTMENT OF TRANSPORTATION
Commission amends 47 CFR part 22 as ■ Interim Final Rule Adopted as Final
follows: With Changes. Accordingly, DOT adopts
Office of the Secretary the interim final rule which was
PART 22—PUBLIC MOBILE SERVICES published in the Federal Register at 70
48 CFR Chapter 12 FR 6506, February 7, 2005, as a final
■ 1. The authority citation for part 22 [Docket No. OST–2004–19899] rule with the following changes:
continues to read as follows: ■ 1. The authority citation for 48 CFR
RIN 2105–AD28
Authority: 47 U.S.C. 154, 222, 303, 309 and parts 1201, 1202, 1217, 1228, and 1252
332. Re-issuance of the Department of continues to read as follows:
■ 2. Add § 22.881 to read as follows: Transportation Acquisition Regulation Authority: 5 U.S.C. 301; 41 U.S.C. 418(b);
(FAR) 48 CFR 1.3.
§ 22.881 Air-Ground Radiotelephone AGENCY: Office of the Secretary, DOT.
Service subject to competitive bidding. ACTION: Final rule. PART 1201—FEDERAL ACQUISITION
Mutually exclusive initial REGULATIONS SYSTEM
applications for general aviation Air- SUMMARY: The Department of
Ground Radiotelephone Service licenses Transportation is converting the interim ■ 2. In 48 CFR 1201.105–2, paragraph
and mutually exclusive initial final rule published in the Federal (a) is amended by:
applications for commercial Air-Ground Register at 70 FR 6506, on February 7, ■ A. Adding ‘‘PHMSA’’ and ‘‘RITA’’ in
Radiotelephone Service licenses are 2005 to a final rule with changes to alphabetic order to the list of acronyms;
subject to competitive bidding. The amend the Transportation Acquisition and
general competitive bidding procedures Regulation (TAR) due to internal ■ B. Removing ‘‘RSPA’’ from the list of
set forth in part 1, subpart Q, of this organization changes and the need for acronyms. The additions read as
chapter will apply unless otherwise minor editorial changes. No comments follows:
provided in this subpart. were received on this rule. This final
rule replaces the 1994 edition of the § 1201.105–2 Arrangement of regulations.
■ 3. Add § 22.882 to read as follows:
Transportation Acquisition Regulation * * * * *
§ 22.882 Designated entities. (TAR) with the 2004 edition. (a) General. * * *
(a) Eligibility for small business DATES: This rule is effective January 26, PHMSA—Pipeline and Hazardous
provisions in the commercial Air- 2006. Materials Safety Administration
Ground Radiotelephone Service. FOR FURTHER INFORMATION CONTACT: RITA—Research and Innovative
(1) A small business is an entity that, Elaine Wheeler, Office of the Senior Technology Administration
together with its affiliates, its Procurement Executive, M–60, 400 * * * * *
controlling interests and the affiliates of Seventh Street, SW., Washington, DC
its controlling interests, has average 20590: (202) 366–4272. PART 1202—DEFINITIONS
gross revenues that are not more than SUPPLEMENTARY INFORMATION:
$40 million for the preceding three ■ 3. In 48 CFR 1202.1, the definition for
years. I. Background Operating Administration (OA) is
(2) A very small business is an entity The Department did not receive any amended by revising paragraphs (9) and
that, together with its affiliates, its comments to its interim final rule on (10) and adding a new paragraph (11) to
controlling interests and the affiliates of this subject. Accordingly, the interim read as follows:
its controlling interests, has average final rule amending 48 CFR Chapter 12
gross revenues that are not more than § 1202.1 Definitions.
which was published at 70 FR 6505 on
$15 million for the preceding three February 7, 2005, is adopted as a final * * * * *
years. rule without substantive change. Operating Administration (OA) means
(b) Bidding credits in the commercial On February 21, 2005, the Department the following components of DOT:
Air-Ground Radiotelephone Service. of Transportation was reorganized by, * * *
(1) A winning bidder that qualifies as among other changes, establishing two (9) Pipeline and Hazardous Materials
a small business, as defined in this new operating administrations. This is Safety Administration (PHMSA).
section, or a consortium of small an internal organizational change to the (10) Research and Innovative
businesses may use a bidding credit of Department not requiring public Technology Administration (RITA).
15 percent, as specified in comment. This final rule includes a (11) Saint Lawrence Seaway
§ 1.2110(f)(2)(iii) of this chapter, to change in nomenclature to ensure that Development Corporation (SLSDC).
lower the cost of its winning bid on a the rule includes the present names of * * * * *
commercial Air-Ground Radiotelephone DOT operating administrations. In
Service license. addition, there are few minor editorial PART 1217—SPECIAL CONTRACTING
(2) A winning bidder that qualifies as corrections. METHODS
a very small business, as defined in this
section, or a consortium of very small List of Subjects in 48 CFR Parts 1201, § 1217.7001 [Amended]
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businesses may use a bidding credit of 1202, 1217, 1228, 1252 ■ 4. Amend § 1217.7001(e) by deleting
25 percent, as specified in Government procurement. the words ‘‘(TAR) 48 CFR 1252.217’’—
§ 1.2110(f)(2)(ii) of this chapter, to lower This final rule is issued under the and adding in their place the words
the cost of its winning bid on a delegated authority of the Senior ‘‘(TAR) 48 CFR 1252.217–75.’’

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