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À ?        ? ? ?      ?    8?       ? ? ~  ?  ? ?  ? ?  ?    ?  ? ??  ?   ?   ? ??  ?   ?  ? ? ? ? ? ? ? ? ?  ? ?   ?   ?   ?  ?  ? ?? ? ? ??? ~?   ? ? ? ?? ? ??  ? ? ??  ?  ?  ?À? ? ?? ?? ?? ? ? ? ?? ?? ??? ? ?? ?? ? ? ?? ? ?? ??  ??  ???  ?  ?  ? ?? ??  ?  ?  >?  ?  ?? - ?: 9 4ǀ? ?4 4 4? 4 4 4 4 5? 5 4 ?4 ?4 5 5 5 ?1? ?1 ?1 ?1 ?0 1x 1 / /? ?/π / / / .? ??.? ?. <. - - - --,,?,,-?----?+?* ??* ?+,>,,,?,?,?,--.?.?.?.%?À%%%%%%?%%?%?%?%&&'''?'?'?''?'())))x)?)?)?))*+++ǀX? π? ? ??? ##?&#&#? %#0%#x?%#?x%#?|%#?%#?%#?%#?%#%#%#%# ?%# $# ?$#?$# $# ?$# $#$#$#$#$#$#$#$###??####?##?##?#$ ?#$'$?'$'*'*'+'++XC q*   1  1 y!88H@Uddfcclogo.wpgy# Q74 #`(#PUBLIC NOTICE#"bp7>&#у  O:-DD(#҇3#&tp?7&#FEDERAL COMMUNICATIONS COMMISSION 1919 M STREET, N.W.  O@-WASHINGTON, D.C. 20554#"bp7>&#X@0*0*0*53LpH!8?'$X  }K:-n3#xxPʖQ+P#News Media Information: (202) 4180500 FaxOnDemand: (202) 4182830 ]Internet: http://www.fcc.gov  }K-Jftp.fcc.gov#J2PQ|tP#~0*0*0*D$::I0*0*3LpH!8?'$~ԯ Z(#Uyx dddhy  yOr-#C\  P6QP#  xP:-R  #D PE3Q MP# FCC 992  Released: January 13, 1999  X -(#U# J2PQ|tP# #2p NQ Sv# # ^\  P6Q 5P# # Xj\  P6G;9XP# PR Docket No. 9361 #|\  P6G; 5P#  X - # Xj\  P6G;9XP#GN Docket No. 96228 #|\  P6G; 5P#ѐl  a <kH COMMENT SOUGHT ON SMALL BUSINESS SIZE STANDARDS  a <l  a<l# ]\  P6Q 5P#U  X-# XP\  P6Q9XP# In accordance with a recent ruling by the Small Business Administration (SBA), the  X-Commission is seeking further comment on small business size standards adopted for the auction of Location and Monitoring Service (LMS) and Wireless Communications Service (WCS) spectrum. This ruling is detailed in the attached letter from the Administrator of the Small Business Administration. We seek comment on these issues for purposes of obtaining SBA approval of the LMS and WCS size standards. This action will not affect the outcome  X:-of the WCS auction or the payment obligations of WCS licensees.    X -The LMS auction is scheduled to begin on February 23, 1999.; 7( {O-#X\  P6G;P#э See Wireless Telecommunications Bureau Postpones December 15, 1998 Auction Date for 528 Multilateration  {OO-Location and Monitoring Service Licenses, Public Notice, DA 98-2246 (November 10, 1998).; In our rules for that  X-auction, we adopted small business size standards and associated bidding credits for LMS to remove entry barriers and ensure the participation of small businesses in the LMS auction and  X-in the provision of service.$7( yO-#X\  P6G;P#э Amendment of the Commission's Rules to Adopt Regulations for Automatic Vehicle Monitoring Systems,  {O-Second Report and Order, FCC 98157,  20 (rel. July 14, 1998), 63 Fed. Reg. 40,659 (July 30, 1998) ("LMS  {O -Second Report and Order"). See also Amendment of Part 90 of the Commission's Rules to Adopt Regulations  {O\!-for Automatic Vehicle Monitoring Systems, Memorandum Opinion and Order and Further Notice of Proposed  {O&"-Rule Making, PR Docket No. 9361, 12 FCC Rcd 13942,  75 (1997) ("LMS Further Notice").  X We sought comment, in general, on small business size standards for LMS, and one party commented on this issue. This commenter, Comtrak, recommended that the Commission adopt two small business categories in the LMS auction: (1) a "small business" category, for businesses with average gross revenues not to exceed $10 million; and (2) a "very small business" category, for businesses with average gross revenues not to exceed  XT-$3 million.qT@7( yO(-#X\  P6G;P#э Comtrak Comments at 4.q Comtrak also recommended that the Commission rely solely on gross revenues,T4 0*0*0*eLpH!8?'$ '#! * h'+' and not the number of employees, for the purpose of determining an entity's eligibility for  X-small business incentives, as it has done in previous auctions.q5 yOb-#X\  P6G;P#э Comtrak Comments at 5.q None of the commenters addressed capital requirements supporting the suggested small business thresholds.  X-The rules we adopted for LMS define a "small business" as an entity with average  X-annual gross revenues for the preceding three years not to exceed $15 million.X5 {O-#X\  P6G;P#э LMS Second Report and Order at  20. They define a "very small business" as an entity with average annual gross revenues for the preceding three  X_-years not to exceed $3 million.d_N5 {O -#X\  P6G;P#э Id.d Thus, in accordance with the Part 1 rules concerning competitive bidding, small businesses will receive a 25 percent bidding credit and very small  X1-businesses will receive a 35 percent bidding credit.1D5 {O-#X\  P6G;P#э Id. See also 47 C.F.R. 1.2110(e).  X -The WCS auction closed on April 25, 1997. :5 yOR-#X\  P6G;P#э WCS Auction Closes; Winning Bidders in the Auction of 128 Wireless Communications Services Licenses,  {O-Public Notice, DA 97-886 (April 28, 1997). In the expedited rulemaking proceeding for this service, the Commission adopted tiered small business size standards and associated  X -bidding credits./ ( 5 {O-#X\  P6G;P#э Amendment of the Commission's Rules to Establish Part 27, the Wireless Communications Service, Report  {O-and Order, 12 FCC Rcd 10785 (1997) at  193, 194 ("WCS Report and Order"). See also Amendment of the  {Ov-Commission's Rules to Establish Part 27, the Wireless Communications Service, Notice of Proposed Rulemaking  {O@-11 FCC Rcd 21713 (1996) at  62, 63 ("WCS Notice"). / The Commission took this action to ensure that small businesses have the  X -opportunity to participate in the provision of spectrumbased services, as required by Section  X -309(j) of the Communications Act. L5 {O-#X\  P6G;P#э 47 U.S.C.  309(j)(4)(D). See also 47 U.S.C.  309(j)(3)(B) and (j)(4)(A). The record in the WCS proceeding supported the establishment of small business provisions. Several commenters urged the Commission to use  Xy-tiered definitions, with levels similar to those employed for broadband PCS.Y yB5 {O"-#X\  P6G;P#э See Comments filed by Rural Telecommunications Group and Cook Inlet Region, Inc., and Reply Comments filed by Total Telecommunications Services, Inc. For broadband PCS, a "small business" is defined as an entity with average annual gross revenues of not more than $40 million for the preceding three years; a "very small business" is defined as an entity with average annual gross revenues of not more than $15 million for the  {O%-preceding three years. See 47 C.F.R.  24.720.Y As was the case with LMS, none of the commenters discussed capital requirements supporting the  XK-suggested small business thresholds. "KZ 0*(("ԌThe Commission adopted the same small business definitions for WCS as it did for  X-broadband PCS. 5 {Ob-#X\  P6G;P#э WCS Report and Order at  194. Thus, it defined a "small business" as an entity with average annual gross  X-revenues for the preceding three years not to exceed $40 million.j Z5 yOA-#X\  P6G;P#э 47 C.F.R.  27.210(b).j The Commission defined  X-a "very small business" as an entity with average annual gross revenues for the preceding  X-three years not to exceed $15 million.ZN5 {O -#X\  P6G;P#э  Id.Z The Commission established bidding credits of 25  X-percent for small businesses and 35 percent for very small businesses.gD5 yO -#X\  P6G;P#э 47 C.F.R.  27.209.g  X_- The SBA recently informed the Commission that the SBA is unable to approve the  XH-LMS and WCS definitions because the Commission did not seek comment on specific small  X1-business proposals in the LMS Further Notice and the WCS Notice.>Z185 {O~-#X\  P6G;P#э See Letters to Amy J. Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, from Aida Alvarez, Administrator, Small Business Administration (December 2, 1998), at Attachments A and B.> See Section 3(a)(2)(C) of the Small Business Act. Herein, we take this opportunity to solicit comments on the specific small business size standards that we adopted for LMS and WCS. Comments are due on or before January 20, 1999. To file formally, parties must submit an original and four copies to the Office of the Secretary, Federal Communications Commission, Federal Communications Commission, 445 Twelfth Street, S.W., TW-A325, Washington, D.C. 20554. In addition, parties must submit one copy to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, Room 5202, 2025 M Street N.W., Washington, D.C. 20554. Comments will be available for public inspection during regular business hours in the Wireless Telecommunications Bureau Public Reference Room, Room 5608, 2025 M Street N.W., Washington, D.C. 20554.  -&,} Action by the Commission on January 12, 1999. -&,}  For further information concerning this proceeding, contact Ken Burnley or Arthur Lechtman, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, at (202) 4180660.  -&,}  X - FCC -