џWPC†: ћџ2E ZB…œе!OіHP LaserJet IIPXNє\  PXP џџааб#XNє\  PXP#бв ШX0УУФФУУФФШX0УУФФУУФФ вHeader ћћааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАРа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ ААааб#XNє\  PXP#б ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ,X„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџААааб#XNє\  PXP#бћџ2Ч йwГPuOxHeading 1 @ 7ааб#XNє\  PXP#бУ УУУзззз ааФ ФФФб#XNє\  P XP#бTOC 1 --б#єAє\  P єP#бУ УУУ б#XNє\  P XP#бФ ФФФTOC 2 а ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PєP#бУУ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  PXP#бФФFooter ћ  ћааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАРа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ ААааб#XNє\  P3XP#б ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ,X„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџААааб#XNє\  P4XP#бћџ2Г Іљ ЌŸ СK Ї Page Number ' 'б#єAє\  P6єP#бб#єAє\  P7єP#бFootnote Ref* *б#єAє\  P}єP#бУУб#XNє\  P~XP#бФФFootnote Tex4'г ‚, гб#єAє\  P‚єP#бг ‚, г б#XNє\  PƒXP#бPara#  ''б#XNє\  PЄXP#б б#XNє\  PЅXP#бћџ2Ш №х Пе Х” oYHyperlink  LLб#єAє\  P єP#бггггУУб Ћ бФФб бггггб#єAє\  P єP#бHeading 2  3 *б#XNє\  P}XP#бУ Узззз Ф Фб#XNє\  P}XP#бHeading 3  6 -б#XNє\  P}XP#бУ УУУзззз Ф ФФФб#XNє\  P}XP#бBody Text In  а xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааб#XNє\  P}XP#б а ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бћџ2@oњПi(‰ЗBlock Text   а xА` ` аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааб#XNє\  P}XP#б а ` ` АА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бHeading 4 3 *б#XNє\  P}XP#бУ Узззз Ф Фб#XNє\  P}XP#бTitle  а ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Уг ‚јј г а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааФ Фб#XNє\  P}XP#б1!" а ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааг ‚Ј§ гб#XNє\  P}XP#бг ‚Ј§ г а ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бћџ2ѓQrШУЇ‹С2Body Text ќ#$ќ‹ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#б ŠааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бFollowedHype8%&8б#єAє\  P}єP#бУУб  бФФб бб#єAє\  P}єP#бStyle0 ''('б#XZф2МP}XP#б б#XNє\  P}XP#бSubtitle 4)*4ааб#XNє\  P}XP#бУ У ааФ Фб#XNє\  P}XP#бћџ2с)o% o”"o%or'TOC 9  +, а АА№ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ№ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА№ ааб#Т:є\  P}ТP#б а № ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бTOC 8  -. а АА( А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ( Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА( ааб#Т:є\  P}ТP#б а ( ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бTOC 7  /0 а АА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааб#Т:є\  P}ТP#б а ` ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бTOC 6  12 а АА˜А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ˜` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА˜ааб#Т:є\  P}ТP#б а ˜ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бћџ2№2o*o‚,uё.Šf1TOC 5  34 а ААаА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџа4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАаааб#Т:є\  P}ТP#б а аААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бTOC 4  56 а ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааб#Т:є\  P}ТP#б а ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бTOC 3 78а АА@А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ@4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџА@ааб#єAє\  P}єP#бУУ а @ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бФФDocument MapЌ9:…ўўL§Dd!!!!D§Lўўб# x}X#бб џџџ бб# x}X#б ўўL§D!!!!D§Lўўб#XNє\  P}XP#бб бћџ28"3X76 Х6!ПT7Comments ^;<^а АА4 аўўL§Dџџdџџ!!!!D§Lўўааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4ааб#XNє\  P}XP#бУУ а 4АА аўўL§D!!!!D§LўўааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааФФб#XNє\  P}XP#бDefault Para=>Heading 9  6? @-б#ТCф2МP}ТP#бУ УУУзззз б#XNє\  P}XP#бФ ФФФHeading 8 !3A B*б#єKф2МP}єP#бУУзззз б#XNє\  P}XP#бФФћџ2;"ЙE8#Пў8$ХН9%€‚:Heading 7 "0C D'б#єKф2МP}єP#бзззз б#XNє\  P}XP#бHeading 6 #3E F*б#&Gє\  P}&P#бУУзззз б#XNє\  P}XP#бФФHeading 5 $6G H-б#XNє\  P}XP#бУ УУУзззз Ф ФФФб#XNє\  P}XP#бSYS_HYPERTEXTSYS_HYPERTEXT%IJб Њ бУ УУУФФФ Фб бћџ2Е90ў4;џџџџџџЋXNє\  PXP(жУ9 Z‹6Times New Roman RegularXXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXXNє\  P XPє\  `&Times New RomanXXNє\  P XPє\  `&Times New RomanXXNє\  P XPє\  `&Times New RomanXєAє\  P єPє\  `&Times New RomanєXNє\  P XPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  P єPє\  `&Times New RomanєєAє\  P!єPє\  `&Times New RomanєєAє\  P"єPє\  `&Times New RomanєєAє\  P#єPє\  `&Times New RomanєєAє\  P$єPє\  `&Times New RomanєєAє\  P%єPє\  `&Times New RomanєєAє\  P&єPє\  `&Times New RomanєєAє\  P'єPє\  `&Times New RomanєXNє\  P(XPє\  `&Times New RomanXXNє\  P)XPє\  `&Times New RomanXєAє\  P*єPє\  `&Times New RomanєєAє\  P+єPє\  `&Times New RomanєєAє\  P,єPє\  `&Times New Romanє4є\  P-Pє\  `&Times New Roman4є\  P.Pє\  `&Times New RomanXNє\  P/XPє\  `&Times New RomanXXNє\  P0XPє\  `&Times New RomanXXNє\  P1XPє\  `&Times New RomanXєAє\  P2єPє\  `&Times New RomanєXNє\  P3XPє\  `&Times New RomanXXNє\  P4XPє\  `&Times New RomanXєAє\  P5єPє\  `&Times New RomanєєAє\  P6єP(жУ9 Z‹6Times New Roman RegularєєAє\  P7єP(жУ9 Z‹6Times New Roman RegularєєAє\  P8єPє\  `&Times New RomanєєAє\  P9єPє\  `&Times New RomanєXNє\  P:XPє\  `&Times New RomanXєAє\  P;єPє\  `&Times New RomanєєAє\  P<єPє\  `&Times New RomanєєAє\  P=єPє\  `&Times New RomanєєAє\  P>єPє\  `&Times New RomanєєAє\  P?єPє\  `&Times New RomanєєAє\  P@єPє\  `&Times New RomanєєAє\  PAєPє\  `&Times New RomanєєAє\  PBєPє\  `&Times New RomanєєAє\  PCєPє\  `&Times New RomanєєAє\  PDєPє\  `&Times New RomanєєAє\  PEєPє\  `&Times New RomanєєAє\  PFєPє\  `&Times New RomanєєAє\  PGєPє\  `&Times New RomanєєAє\  PHєPє\  `&Times New RomanєєAє\  PIєPє\  `&Times New RomanєєAє\  PJєPє\  `&Times New RomanєєAє\  PKєPє\  `&Times New RomanєєAє\  PLєPє\  `&Times New RomanєєAє\  PMєPє\  `&Times New RomanєєAє\  PNєPє\  `&Times New RomanєєAє\  POєPє\  `&Times New RomanєєAє\  PPєPє\  `&Times New RomanєєAє\  PQєPє\  `&Times New RomanєєAє\  PRєPє\  `&Times New RomanєєAє\  PSєPє\  `&Times New RomanєєAє\  PTєPє\  `&Times New RomanєєAє\  PUєPє\  `&Times New RomanєєAє\  PVєPє\  `&Times New RomanєєAє\  PWєPє\  `&Times New RomanєєAє\  PXєPє\  `&Times New RomanєєAє\  PYєPє\  `&Times New RomanєєAє\  PZєPє\  `&Times New RomanєєAє\  P[єPє\  `&Times New RomanєєAє\  P\єPє\  `&Times New RomanєєAє\  P]єPє\  `&Times New RomanєєAє\  P^єPє\  `&Times New RomanєєAє\  P_єPє\  `&Times New RomanєєAє\  P`єPє\  `&Times New RomanєєAє\  PaєPє\  `&Times New RomanєєAє\  PbєPє\  `&Times New RomanєєAє\  PcєPє\  `&Times New RomanєєAє\  PdєPє\  `&Times New RomanєєAє\  PeєPє\  `&Times New RomanєєAє\  PfєPє\  `&Times New RomanєєAє\  PgєPє\  `&Times New RomanєєAє\  PhєPє\  `&Times New RomanєєAє\  PiєPє\  `&Times New RomanєєAє\  PjєPє\  `&Times New RomanєєAє\  PkєPє\  `&Times New RomanєєAє\  PlєPє\  `&Times New Romanєє_є\  PmQєP(є\ Y`SymbolєєAє\  PnєPє\  `&Times New RomanєєAє\  PoєPє\  `&Times New RomanєєAє\  PpєPє\  `&Times New RomanєєAє\  PqєPє\  `&Times New RomanєєAє\  PrєPє\  `&Times New RomanєєAє\  PsєPє\  `&Times New RomanєєAє\  PtєPє\  `&Times New RomanєєAє\  PuєPє\  `&Times New RomanєєAє\  PvєPє\  `&Times New RomanєєAє\  PwєPє\  `&Times New RomanєєAє\  PxєPє\  `&Times New RomanєєAє\  PyєPє\  `&Times New RomanєXNє\  PzXPє\  `&Times New RomanXєAє\  P{єPє\  `&Times New RomanєXNє\  P|XPє\  `&Times New RomanXєAє\  P}єPє\  `&Times New RomanєXNє\  P~XPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєXNє\  P€XPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXєAє\  P‚єPє\  `&Times New RomanєXNє\  PƒXPє\  `&Times New RomanXєAє\  P„єPє\  `&Times New RomanєєAє\  P…єPє\  `&Times New RomanєєAє\  P†єPє\  `&Times New RomanєXNє\  P‡XPє\  `&Times New RomanXєAє\  PˆєPє\  `&Times New RomanєXNє\  P‰XPє\  `&Times New RomanXXNє\  PŠXPє\  `&Times New RomanXєAє\  P‹єPє\  `&Times New RomanєєAє\  PŒєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєXNє\  PŽXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXXNє\  P‘XPє\  `&Times New RomanXєAє\  P’єPє\  `&Times New RomanєєAє\  P“єPє\  `&Times New RomanєєAє\  P”єPє\  `&Times New RomanєXNє\  P•XPє\  `&Times New RomanXєAє\  P–єPє\  `&Times New RomanєXNє\  P—XPє\  `&Times New RomanXXNє\  P˜XPє\  `&Times New RomanXєAє\  P™єPє\  `&Times New RomanєєAє\  PšєPє\  `&Times New RomanєєAє\  P›єPє\  `&Times New RomanєXNє\  PœXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєXNє\  PžXPє\  `&Times New RomanXXNє\  PŸXPє\  `&Times New RomanXєAє\  P єPє\  `&Times New RomanєєAє\  PЁєPє\  `&Times New RomanєєAє\  PЂєPє\  `&Times New RomanєXNє\  PЃXPє\  `&Times New RomanXXNє\  PЄXPє\  `&Times New RomanXXNє\  PЅXPє\  `&Times New RomanXXNє\  PІXPє\  `&Times New RomanXXNє\  PЇXPє\  `&Times New RomanXXNє\  PЈXPє\  `&Times New RomanXєAє\  PЉєPє\  `&Times New RomanєXNє\  PЊXPє\  `&Times New RomanXXNє\  PЋXPє\  `&Times New RomanXєAє\  PЌєPє\  `&Times New RomanєєAє\  P­єPє\  `&Times New RomanєєAє\  PЎєPє\  `&Times New RomanєXNє\  PЏXPє\  `&Times New RomanXєAє\  PАєPє\  `&Times New RomanєXNє\  PБXPє\  `&Times New RomanXXNє\  PВXPє\  `&Times New RomanXєAє\  PГєPє\  `&Times New RomanєєAє\  PДєPє\  `&Times New RomanєєAє\  PЕєPє\  `&Times New RomanєXNє\  PЖXPє\  `&Times New RomanXXNє\  PЗXPє\  `&Times New RomanXXNє\  PИXPє\  `&Times New RomanXєAє\  PЙєPє\  `&Times New RomanєXNє\  PКXPє\  `&Times New RomanXXNє\  PЛXPє\  `&Times New RomanXєAє\  PМєPє\  `&Times New RomanєєAє\  PНєPє\  `&Times New RomanєєAє\  PОєPє\  `&Times New RomanєXNє\  PПXPє\  `&Times New RomanXєAє\  PРєPє\  `&Times New RomanєXNє\  PСXPє\  `&Times New RomanXXNє\  PТXPє\  `&Times New RomanXєAє\  PУєPє\  `&Times New RomanєєAє\  PФєPє\  `&Times New RomanєєAє\  PХєPє\  `&Times New RomanєXNє\  PЦXPє\  `&Times New RomanXєAє\  PЧєPє\  `&Times New RomanєXNє\  PШXPє\  `&Times New RomanXXNє\  PЩXPє\  `&Times New RomanXєAє\  PЪєPє\  `&Times New RomanєєAє\  PЫєPє\  `&Times New RomanєєAє\  PЬєPє\  `&Times New RomanєXNє\  PЭXPє\  `&Times New RomanXєAє\  PЮєPє\  `&Times New RomanєXNє\  PЯXPє\  `&Times New RomanXєAє\  PаєPє\  `&Times New RomanєXNє\  PбXPє\  `&Times New RomanXєAє\  PвєPє\  `&Times New RomanєXNє\  PгXPє\  `&Times New RomanXєAє\  PдєPє\  `&Times New RomanєXNє\  PеXPє\  `&Times New RomanXєAє\  PжєPє\  `&Times New RomanєXNє\  PзXPє\  `&Times New RomanXєAє\  PиєPє\  `&Times New RomanєXNє\  PйXPє\  `&Times New RomanXєAє\  PкєPє\  `&Times New RomanєXNє\  PлXPє\  `&Times New RomanXXNє\  PмXPє\  `&Times New RomanXєAє\  PнєPє\  `&Times New RomanєєAє\  PоєPє\  `&Times New RomanєєAє\  PпєPє\  `&Times New RomanєXNє\  PрXPє\  `&Times New RomanXєAє\  PсєPє\  `&Times New RomanєXNє\  PтXPє\  `&Times New RomanXXNє\  PуXPє\  `&Times New RomanXєAє\  PфєPє\  `&Times New RomanєєAє\  PхєPє\  `&Times New RomanєєAє\  PцєPє\  `&Times New RomanєXNє\  PчXPє\  `&Times New RomanXXNє\  PшXPє\  `&Times New RomanXXNє\  PщXPє\  `&Times New RomanXєAє\  PъєPє\  `&Times New RomanєXNє\  PыXPє\  `&Times New RomanXXNє\  PьXPє\  `&Times New RomanXєAє\  PэєPє\  `&Times New RomanєєAє\  PюєPє\  `&Times New RomanєєAє\  PяєPє\  `&Times New RomanєXNє\  P№XPє\  `&Times New RomanXєAє\  PёєPє\  `&Times New RomanєXNє\  PђXPє\  `&Times New RomanXXNє\  PѓXPє\  `&Times New RomanXєAє\  PєєPє\  `&Times New RomanєєAє\  PѕєPє\  `&Times New RomanєєAє\  PієPє\  `&Times New RomanєXNє\  PїXPє\  `&Times New RomanXєAє\  PјєPє\  `&Times New RomanєXNє\  PљXPє\  `&Times New RomanXXNє\  PњXPє\  `&Times New RomanXєAє\  PћєPє\  `&Times New RomanєєAє\  PќєPє\  `&Times New RomanєєAє\  P§єPє\  `&Times New RomanєXNє\  PўXPє\  `&Times New RomanXєAє\  PџєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXєAє\  P єPє\  `&Times New RomanєєAє\  P єPє\  `&Times New RomanєєAє\  P єPє\  `&Times New RomanєєAє\  P єP(жУ9 Z‹6Times New Roman RegularєєAє\  P єP(жУ9 Z‹6Times New Roman RegularєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXXNє\  PXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєєAє\  PєPє\  `&Times New RomanєXNє\  PXPє\  `&Times New RomanXєAє\  PєPє\  `&Times New RomanєXNє\  P XPє\  `&Times New RomanXXNє\  P!XPє\  `&Times New RomanXєAє\  P"єPє\  `&Times New RomanєєAє\  P#єPє\  `&Times New RomanєєAє\  P$єPє\  `&Times New RomanєXNє\  P%XPє\  `&Times New RomanXєAє\  P&єPє\  `&Times New RomanєXNє\  P'XPє\  `&Times New RomanXXNє\  P(XPє\  `&Times New RomanXєAє\  P)єPє\  `&Times New RomanєєAє\  P*єPє\  `&Times New RomanєєAє\  P+єPє\  `&Times New RomanєXNє\  P,XPє\  `&Times New RomanXєAє\  P-єPє\  `&Times New RomanєXNє\  P.XPє\  `&Times New RomanXXNє\  P/XPє\  `&Times New RomanXєAє\  P0єPє\  `&Times New RomanєєAє\  P1єPє\  `&Times New RomanєєAє\  P2єPє\  `&Times New RomanєXNє\  P3XPє\  `&Times New RomanXєAє\  P4єPє\  `&Times New RomanєXNє\  P5XPє\  `&Times New RomanXXNє\  P6XPє\  `&Times New RomanXєAє\  P7єPє\  `&Times New RomanєєAє\  P8єPє\  `&Times New RomanєєAє\  P9єPє\  `&Times New RomanєXNє\  P:XPє\  `&Times New RomanXXNє\  P;XPє\  `&Times New RomanXXNє\  P<XPє\  `&Times New RomanXєAє\  P=єPє\  `&Times New RomanєXNє\  P>XPє\  `&Times New RomanXXNє\  P?XPє\  `&Times New RomanXєAє\  P@єPє\  `&Times New RomanєєAє\  PAєPє\  `&Times New RomanєєAє\  PBєPє\  `&Times New RomanєXNє\  PCXPє\  `&Times New RomanXєAє\  PDєPє\  `&Times New RomanєXNє\  PEXPє\  `&Times New RomanXXNє\  PFXPє\  `&Times New RomanXєAє\  PGєPє\  `&Times New RomanєєAє\  PHєPє\  `&Times New RomanєєAє\  PIєPє\  `&Times New RomanєXNє\  PJXPє\  `&Times New RomanXєAє\  PKєPє\  `&Times New RomanєXNє\  PLXPє\  `&Times New RomanXXNє\  PMXPє\  `&Times New RomanXєAє\  PNєPє\  `&Times New RomanєєAє\  POєPє\  `&Times New RomanєєAє\  PPєPє\  `&Times New RomanєєAє\  PQєPє\  `&Times New RomanєєAє\  PRєPє\  `&Times New RomanєXNє\  PSXPє\  `&Times New RomanXXNє\  PTXPє\  `&Times New RomanXXNє\  PUXPє\  `&Times New RomanXєAє\  PVєPє\  `&Times New RomanєXNє\  PWXPє\  `&Times New RomanXXNє\  PXXPє\  `&Times New RomanXєAє\  PYєPє\  `&Times New RomanєєAє\  PZєPє\  `&Times New RomanєєAє\  P[єPє\  `&Times New RomanєXNє\  P\XPє\  `&Times New RomanXєAє\  P]єPє\  `&Times New RomanєXNє\  P^XPє\  `&Times New RomanXXNє\  P_XPє\  `&Times New RomanXєAє\  P`єPє\  `&Times New RomanєєAє\  PaєPє\  `&Times New RomanєєAє\  PbєPє\  `&Times New RomanєXNє\  PcXPє\  `&Times New RomanXєAє\  PdєPє\  `&Times New RomanєXNє\  PeXPє\  `&Times New RomanXXNє\  PfXPє\  `&Times New RomanXєAє\  PgєPє\  `&Times New RomanєєAє\  PhєPє\  `&Times New RomanєєAє\  PiєPє\  `&Times New RomanєXNє\  PjXPє\  `&Times New RomanXєAє\  PkєPє\  `&Times New RomanєXNє\  PlXPє\  `&Times New RomanXXNє\  PmXPє\  `&Times New RomanXєAє\  PnєPє\  `&Times New RomanєєAє\  PoєPє\  `&Times New RomanєєAє\  PpєPє\  `&Times New RomanєєAє\  PqєPє\  `&Times New RomanєєAє\  PrєPє\  `&Times New RomanєXNє\  PsXPє\  `&Times New RomanXXNє\  PtXPє\  `&Times New RomanXXNє\  PuXPє\  `&Times New RomanXXNє\  PvXPє\  `&Times New RomanXєAє\  PwєPє\  `&Times New RomanєєAє\  PxєPє\  `&Times New RomanєXNє\  PyXPє\  `&Times New RomanXєAє\  PzєPє\  `&Times New RomanєXNє\  P{XPє\  `&Times New RomanXXNє\  P|XPє\  `&Times New RomanXћџ2ч9я9#|x‘СKџ€d ЊЊЊЊЊЊЊЊUЊЊЊUUUUUџUџUUџџџUUџUџџџUџџџ ,,,888EEEQQQaaaqqq‚‚‚’’’ЂЂЂЖЖЖЫЫЫуууџџџ џ ›%%%Šа ААLL ае{вааб#XNє\  PXP#блHeader лааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАРа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ ААааб#XNє\  PXP#бллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАь’"(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ ААааСЪ” ьСУ УFederal Communications CommissionƒСJŽ’"AСFCC 99Љ204лHeader лƒ ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРpШ xа (#€%и'0*ˆ,р.813ш5@8˜:№єP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааA.ССOverviewСZw"#IС38лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  P?єP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  P@єP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааB.ССDefining Р РUnserved AreaРРСZw"#IС39лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PAєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PBєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааC.ССDetermining When a Community is UnservedСZw"#IС40лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PCєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PDєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааD.ССDetermining When No Common Carrier Will Provide ServiceСZw"#IС40лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PEєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PFєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааE.ССIdentifying Carrier or Carriers Best Able to Serve Unserved AreasСZw"#IС40лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PGєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PHєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааF.ССOrdering Carriers to Provide ServiceСZw"#IС48лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PIєP#бФФлллTOC 1 лб#єAє\  PJєP#бУ УУУллг d гй d йVI.ССUnderserved AreasСZw"#IС49лTOC 1 лƒ б#єAє\  PKєP#бФ ФФФллй йлTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PLєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааA.ССDefining Р РUnderserved AreaРРСZw"#IС49лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PMєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PNєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааB.ССExpanding LinkUp to Include FacilitiesЉBased ChargesСZw"#IС49лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  POєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PPєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааC.ССSupport for Intrastate Toll CallingСZw"#IС51лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PQєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PRєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааD.ССExpanded Availability of Toll Limitation DevicesСZw"#IС51лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PSєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PTєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааE.ССPublicizing Availability of LowЉIncome SupportСZw"#IС52лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PUєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PVєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааF.ССSupport for Rural Health Care InfrastructureСZw"#IС53лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PWєP#бФФлллTOC 1 лб#єAє\  PXєP#бУ УУУллг d гй d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааVII.ССInsular AreasСZw"#IС56лTOC 1 лƒ б#єAє\  PYєP#бФ ФФФллй йлTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PZєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааA.ССDefining Р РInsular AreaРРСZw"#IС56лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  P[єP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  P\єP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааB.ССRural Health Care SupportСZw"#IС58лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  P]єP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  P^єP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааC.ССAccess to TollЉFree Services in Insular AreasСZw"#IС60лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  P_єP#бФФлллTOC 1 лб#єAє\  P`єP#бУ УУУллг d гй d йVIII.ССProcedural MattersСZw"#IС62лTOC 1 лƒ б#єAє\  PaєP#бФ ФФФллй йлTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PbєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааA.ССEx Parte ProceduresСZw"#IС62лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PcєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PdєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааB.ССComment Filing ProceduresСZw"#IС62лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PeєP#бФФлллTOC 2 ла ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџxм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџАxааб#єAє\  PfєP#бУУллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџx#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`АxааC.ССInitial Regulatory Flexibility Act AnalysisСZw"#IС63лTOC 2 лƒ а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааб#єAє\  PgєP#бФФлллTOC 1 лб#єAє\  PhєP#бУ УУУллг d гй d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА@#(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааIX.ССOrdering clausesСZw"#IС63лTOC 1 лƒ б#єAє\  PiєP#бФ ФФФллй йлTOC 1 лб#єAє\  PjєP#бУ УУУллг d гй d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` #(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааAPPENDIX A:ССCOMMISSION MEETINGS ON INDIAN TELECOMMUNICATIONS ISSUES Р!Р LIST OF ATTENDEESСС65лTOC 1 л б#єAє\  PkєP#бФ ФФФллй йлTOC 1 лб#єAє\  PlєP#бУ УУУллг d гй d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА( #(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааAPPENDIX B: ССOVERCOMING OBSTACLES TO TELEPHONE SERVICE TO INDIANS ON RESERVATIONS б#є_є\  PmQєP#бР- Рб#єAє\  PnєP#бCOMMISSION HEARINGSСZw"#IС67лTOC 1 лƒ б#єAє\  PoєP#бФ ФФФллй йлTOC 1 лб#єAє\  PpєP#бУ УУУллг d гй d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` #(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааAPPENDIX C:ССOVERCOMING OBSTACLES TO TELEPHONE SERVICE TO INDIANS ON RESERVATIONS Р!Р PARTIES FILING COMMENTSСZw"#IС69лTOC 1 лƒ б#єAє\  PqєP#бФ ФФФллй йлTOC 1 лб#єAє\  PrєP#бУ УУУллг d гй d йAPPENDIX D:ССCOMPETITIVE BIDDING PROPOSALS AND EXAMPLESСZw"#IС71лTOC 1 лƒ б#єAє\  PsєP#бФ ФФФллй йлTOC 1 лб#єAє\  PtєP#бУ УУУллг d гй d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА( #(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааAPPENDIX E: ССARIZONA PROPOSAL CONCERNING UNIVERSAL SERVICE SUPPORT FOR INITIAL CONNECTION CHARGESСZw"#IС83лTOC 1 лƒ б#єAє\  PuєP#бФ ФФФллй йлTOC 1 лб#єAє\  PvєP#бУ УУУллг d гй d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` #(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ`ААааAPPENDIX F:ССINITIAL REGULATORY FLEXIBILITY ACT ANALYSISСZw"#IС84лTOC 1 лƒ б#єAє\  PwєP#бФ ФФФллй йлTOC 1 лб#єAє\  PxєP#бУ УУУллг d гй d й›лTOC 1 л б#єAє\  PyєP#бФ ФФФллй йлHeading 1 лааб#XNє\  PzXP#бУ УУУззллг Ш гй : йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒвййи€иўўЏ§Ї_Toc453402578Ї§ЏўўўўЏ§Ї_Toc453402578Ї§ЏўўўўЏ§Ї_Toc453402562Ї§ЏўўўўЏ§Ї_Toc453402562Ї§ЏўўўўЏ§Ї_Toc453729673Ї§ЏўўўўЏ§Ї_Toc453729673Ї§ЏўўўўЏ§Ї_Toc454240640Ї§ЏўўўўЏ§Ї_Toc454240640Ї§ЏўўўўЏ§Ї_Toc454357522Ї§ЏўўўўЏ§Ї_Toc454357522Ї§ЏўўўўЏ§Ї_Toc456170641Ї§ЏўўўўЏ§Ї_Toc456170641Ї§ЏўўўўЏ§Ї_Toc456674452Ї§ЏўўўўЏ§Ї_Toc456674452Ї§ЏўўўўЏ§Ї_Toc458418505Ї§ЏўўўўЏ§Ї_Toc458418505Ї§ЏўўўўЏ§Ї_Toc458419286Ї§ЏўўўўЏ§Ї_Toc458419286Ї§ЏўўўўЏ§Ї_Toc460144389Ї§ЏўўINTRODUCTIONўўЏ§Ї_Toc460144389Ї§Џўўл!Heading 1 !лззŒааФ ФФФб#єAє\  P{єP#бллб#XNє\  P|XP#бй d йвŒ 1. 1 1 1 1 1 1 1 ŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAn important goal of the Telecommunications Act of 1996лFootnote Refлб#єAє\  PєP#бУУллўўЏ§Ї_Ref454601670Ї§Џўўл#Footnote Ref#лб#XNє\  P€XP#бФФллўўЏ§Ї_Ref454601670Ї§Џўўв X0УУФФУУФФX0УУФФУУФФ вв X0УУФФX0УУФФ вж+џџааб#XNє\  PXP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P„єP#бллй V йлFootnote Refлб#єAє\  P…єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P†єP#блл ССУУSeeФФ Pub. L. No. 104Љ104, 110 Stat. 56 (1996) (1996 Act), amending the Communications Act of 1934, 47 U.S.C. РР 151, УУet seq., ФФ(the Act).б#XNє\  P‡XP#бй d й+ж is to preserve and advance universal service in a competitive telecommunications environment.лFootnote Refлб#єAє\  PˆєP#бУУллл#Footnote Ref#лб#XNє\  P‰XP#бФФллв X0УУФФX0УУФФ вжЌџџааб#XNє\  PŠXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P‹єP#бллй V йлFootnote Refлб#єAє\  PŒєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PєP#блл СС47 U.S.C. РР 254(b).б#XNє\  PŽXP#бй d йЌж The 1996 Act mandates that Р Рconsumers in all regions of the Nation, including lowЉincome consumers and those in rural, insular, and high[Љ] cost areas, should have access to telecommunications and information services . . . .РРлFootnote Refлб#єAє\  PєP#бУУллл#Footnote Ref#лб#XNє\  PXP#бФФллв X0УУФФX0УУФФ вжЏџџааб#XNє\  P‘XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P’єP#бллй V йлFootnote Refлб#єAє\  P“єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P”єP#блл СС47 U.S.C. РР 254(b)(3).б#XNє\  P•XP#бй d йЏж Congress also directed that the support mechanisms employed by the Commission for this task should be Р Рspecific, predictable and sufficient.РРлFootnote Refлб#єAє\  P–єP#бУУллл#Footnote Ref#лб#XNє\  P—XP#бФФллв X0УУФФX0УУФФ вжѕџџааб#XNє\  P˜XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P™єP#бллй V йлFootnote Refлб#єAє\  PšєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P›єP#бллг bb гСС47 U.S.C. РР 254(b)(5). УУSee alsoФФ 47 U.S.C. РР 254(d).б#XNє\  PœXP#бй d йг dd гѕж ўўЏ§Ї_Ref454018158Ї§ЏўўThrough decisions adopted over the past two years, the Commission has been striving to ensure that federal universal service support mechanisms for highЉcost areas, lowЉincome consumers, schools and libraries, and rural health care providers, enable consumers to obtain telecommunications services that would otherwise be prohibitively expensive.лFootnote Refлб#єAє\  PєP#бУУллўўЏ§Ї_Ref454018158Ї§ЏўўўўЏ§Ї_Ref454016995Ї§Џўўл#Footnote Ref#лб#XNє\  PžXP#бФФллв X0УУФФX0УУФФ вжwџџааб#XNє\  PŸXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P єP#бллй V йлFootnote Refлб#єAє\  PЁєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PЂєP#бллг bb гССУУFederalЉState Joint Board on Universal ServiceФФ, Notice of Proposed Rulemaking and Order Establishing a Joint Board, 11 FCC Rcd 18092 (1996) (УУMay 1996 NoticeФФ); Recommended Decision, 12 FCC Rcd 87 (Jt. Bd. 1996) (УУFirst Recommended Decision); ФФReport and Order, CC Docket No. 96Љ45, 12 FCC Rcd 8776 (1997), as corrected by Errata, CC Docket No. 96Љ45 (rel. June 4, 1997) (УУFirst Report and OrderФФ); Order on Reconsideration, 12 FCC Rcd 10095 (1997); Second Order on Reconsideration, 12 FCC Rcd 18400 (1997); Third Order on Reconsideration, 12 FCC Rcd 22801 (1997); Fourth Order on Reconsideration, 13 FCC Rcd 2372 (1997); Fifth Order on Reconsideration, 13 FCC Rcd 14915 (1998); Order and Order on Reconsideration, 13 FCC Rcd 13749 (1997); Second Recommended Decision, 13 FCC Rcd 24744 (1998); Sixth Order on Reconsideration, 13 FCC Rcd 22908 (1998); Seventh Order on Reconsideration, 13 FCC Rcd 19397 (1998); Eighth Order on Reconsideration, 13 FCC Rcd 25058 (1998); Ninth Order on Reconsideration, 14 FCC Rcd 377 (1998); Tenth Order on Reconsideration, FCC 99Љ46 (rel. Apr. 2, 1999); Eleventh Order on Reconsideration, FCC 99Љ49 (rel. May 28, 1999); Twelfth Order on Reconsideration, FCC 99Љ121 (rel. May 28, 1999); Thirteenth Order on Reconsideration, FCC 99Љ119 (rel. May 28, 1999); УУaffirmed in part, remanded in part and reversed in part, Texas Office of Public Utility Counsel v. FCCФФ, No. 97Љ60421 (5th Cir. Jul. 30, 1999).УУб#XNє\  PЃXP#бй d йФФг dd гwж й йл Para# лб#XNє\  PІXP#бллг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe absence of telecommunications service in a home puts its occupants at a tremendous disadvantage in todayРРs society. Parents cannot be reached when urgent situations arise at school. Job seekers cannot offer prospective employers a quick and convenient means of communication. People in immediate need of emergency services cannot contact police departments, fire departments, or medical providers. In short, telephone service provides a vital link between individuals and society as a whole. Given the importance of telephone service in modern society, it is imperative that the Commission take swift and decisive action to promote the deployment of facilities to unserved and underserved areas and to provide the support necessary to increase subscribership in these areas.л Para# л б#XNє\  PЇXP#бллл Para# лб#XNє\  PЈXP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Commission took additional steps in the Thirteenth Order on Reconsideration toward realizing CongressРРs goal of bringing telecommunications services to all regions of the nation.лFootnote Refлб#єAє\  PЉєP#бУУллўўЏ§Ї_Ref454016995Ї§ЏўўўўЏ§Ї_Ref454198789Ї§Џўўл#Footnote Ref#лб#XNє\  PЊXP#бФФллв X0УУФФX0УУФФ вжьџџааб#XNє\  PЋXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PЌєP#бллй V йлFootnote Refлб#єAє\  P­єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PЎєP#блл ССУУг bb гThirteenth Order on Reconsideration, supra ФФn. 5.г dd гб#XNє\  PЏXP#бй d йьж Specifically, in consultation with the FederalЉState Joint Board on Universal Service (Joint Board), we adopted the framework for a new, forwardЉlooking highЉcost support mechanism for nonЉrural carriers.лFootnote Refлб#єAє\  PАєP#бУУллл#Footnote Ref#лб#XNє\  PБXP#бФФллв X0УУФФX0УУФФ вжWџџааб#XNє\  PВXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PГєP#бллй V йлFootnote Refлб#єAє\  PДєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PЕєP#блл ССThis new support mechanism has a twoЉpart methodology that considers both the relative costs of providing supported services and the states' ability to support those costs using their own resources. УУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at paras. 47Љ78. г dd гIn the first step of the methodology, the costs incurred by a nonЉrural carrier to provide supported services are estimated using a single national model based on forwardЉlooking costs. УУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at paras. 49Љ54. г dd гThose costs are then compared to a national cost benchmark to determine which areas have costs that exceed the benchmark, and are therefore in need of support. УУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at paras. 61Љ62. г dd гIn the second step of the methodology, the state's ability to achieve reasonably comparable rates using its own resources is estimated by multiplying a fixed dollar amount by the number of lines served by nonЉrural carriers in the state. УУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at paras. 63Љ66. г dd гThe federal support mechanism will provide support for costs that exceed both the national benchmark and the individual state's resources to support those costs. УУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at paras. 11, 65Љ66.г dd гб#XNє\  PЖXP#бй d йWж This new highЉcost support mechanism is intended to ensure that highЉcost areas receive support that is specific, predictable, and sufficient, even as local competition develops. Moreover, we believe that the forwardЉlooking methodology, as opposed to a methodology based on book costs, will encourage efficient entry and investment in highЉcost areas because forwardЉlooking costs drive market decisions. л Para# л б#XNє\  PЗXP#бллл Para# лб#XNє\  PИXP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn addition to adopting the methodology for the new highЉcost support mechanism for nonЉrural carriers, the Thirteenth Order on Reconsideration also sought comment on certain issues regarding the implementation of the new mechanism.лFootnote Refлб#єAє\  PЙєP#бУУллл#Footnote Ref#лб#XNє\  PКXP#бФФллв X0УУФФX0УУФФ вжїџџааб#XNє\  PЛXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PМєP#бллй V йлFootnote Refлб#єAє\  PНєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PОєP#бллССУУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at para. 95.г dd гб#XNє\  PПXP#бй d йїж The Commission intends to resolve these implementation issues in the fall of 1999, so that the new highЉcost support mechanism will begin providing support to nonЉrural carriers beginning on January 1, 2000.лFootnote Refлб#єAє\  PРєP#бУУллл#Footnote Ref#лб#XNє\  PСXP#бФФллв X0УУФФX0УУФФ вжј џџааб#XNє\  PТXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PУєP#бллй V йлFootnote Refлб#єAє\  PФєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PХєP#блл ССУУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at para. 19.г dd гб#XNє\  PЦXP#бй d йјж In addition, the Commission reaffirmed its intention that rural carriersлFootnote Refлб#єAє\  PЧєP#бУУллўўЏ§Ї_Ref454198789Ї§ЏўўўўЏ§Ї_Ref460150690Ї§Џўўл#Footnote Ref#лб#XNє\  PШXP#бФФллв X0УУФФX0УУФФ вжЮ џџааб#XNє\  PЩXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PЪєP#бллй V йлFootnote Refлб#єAє\  PЫєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PЬєP#блл ССУУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at para. 3. г dd гSection 3(37) of the 1996 Act defines a Rural Telephone Company as a local exchange carrier operating entity to the extent that such entity Р!Р л#Footnote Tex#л б#XNє\  PЭXP#бллй йлFootnote Texлг ‚, гб#єAє\  PЮєP#бллй d йа xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАаа(A) provides common carrier service to any local exchange study area that does not include either Р!Р л#Footnote Tex#л б#XNє\  PЯXP#бллй йлFootnote Texлг ‚, гб#єAє\  PаєP#бллй d йа А` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` аа(i) any incorporated place of 10,000 inhabitants or more, or any part thereof, based on the most recently available population statistics of the Bureau of the Census; orл#Footnote Tex#л б#XNє\  PбXP#бллй йлFootnote Texлг ‚, гб#єAє\  PвєP#бллй d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` аа(ii) any territory, incorporated or unincorporated, included in an urbanized area, as defined by the Bureau of the Census as of August 10, 1993;л#Footnote Tex#л б#XNє\  PгXP#бллй йлFootnote Texлг ‚, гб#єAє\  PдєP#бллй d йа ` АА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАаа(B) provides telephone exchange service, including exchange access, to fewer than 50,000 access lines;л#Footnote Tex#л б#XNє\  PеXP#бллй йлFootnote Texлг ‚, гб#єAє\  PжєP#бллй d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАаа(C) provides telephone exchange service to any local exchange carrier study area with fewer than 100,000 access lines; orл#Footnote Tex#л б#XNє\  PзXP#бллй йлFootnote Texлг ‚, гб#єAє\  PиєP#бллй d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАаа(D) has less than 15 percent of its access lines in communities of more than 50,000 on the date of enactment of the Telecommunications Act of 1996.б#XNє\  PйXP#бй d йЮж will receive support based on the forwardЉlooking costs of providing supported services, but not before January 1, 2001, and only after further review by the Commission, the Joint Board, and a Rural Task Force appointed by the Joint Board.лFootnote Refлб#єAє\  PкєP#бУУллл#Footnote Ref#лб#XNє\  PлXP#бФФллв X0УУФФX0УУФФ вж џџааб#XNє\  PмXP#ба АxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PнєP#бллй V йлFootnote Refлб#єAє\  PоєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PпєP#блл ССУУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at paras. 21, 129. УУSee alsoФФ УУFirst Report and OrderФФ, 12 FCC Rcd at 8889, 8910, 8917Љ18; УУFederalЉState Joint Board on Universal Service Announces the Creation of a Rural Task Force, Solicits Nominations for Membership on Rural Task ForceФФ, Public Notice, FCC 97JЉ1 (rel. Sept. 17, 1997).г dd гб#XNє\  PрXP#бй d йж In the meantime, rural carriers will continue to receive highЉcost support based on the existing mechanism until the Commission adopts an appropriate forwardЉlooking mechanism for determining rural support.лFootnote Refлб#єAє\  PсєP#бУУлл л#Footnote Ref#лб#XNє\  PтXP#бФФллв X0УУФФX0УУФФ вж* џџааб#XNє\  PуXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PфєP#бллй V йлFootnote Refлб#єAє\  PхєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PцєP#блл ССThe existing highЉcost support mechanism provides increasing amounts of support based on the percentage by which a carrierРРs loop costs exceed the national average cost per loop, beginning with loop costs greater than 115 percent of the national average cost per loop. УУSeeФФ 47 C.F.R. РРРР 36.631(c), (d); УУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at para. 98. The existing mechanism provides support only for loop costs, while the new forwardЉlooking mechanism for nonЉrural carriers provides support based on the estimated cost of all components of the network necessary to provide supported services.г dd гб#XNє\  PчXP#бй d й*ж л Para# л б#XNє\  PшXP#бллл Para# лб#XNє\  PщXP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Commission has also recognized that, despite the steps it had taken to achieve the universal service goals of the 1996 Act, some areas of the nation remain unserved or inadequately served.лFootnote Refлб#єAє\  PъєP#бУУллл#Footnote Ref#лб#XNє\  PыXP#бФФллв X0УУФФX0УУФФ вжќ џџааб#XNє\  PьXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PэєP#бллй V йлFootnote Refлб#єAє\  PюєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PяєP#блл ССУУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at paras. 91Љ92.г dd гб#XNє\  P№XP#бй d йќж In the УУFirst Report and Order,ФФ the Commission stated that it would revisit certain issues pertaining to the availability of service in unserved areasлFootnote Refлб#єAє\  PёєP#бУУллл#Footnote Ref#лб#XNє\  PђXP#бФФллв X0УУФФX0УУФФ вжЭџџааб#XNє\  PѓXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PєєP#бллй V йлFootnote Refлб#єAє\  PѕєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PієP#блл ССУУFirst Report and Order, ФФ12 FCC Rcd at 8885Љ8886. б#XNє\  PїXP#бй d йЭж and universal service support in insular areas.лFootnote Refлб#єAє\  PјєP#бУУллл#Footnote Ref#лб#XNє\  PљXP#бФФллв X0УУФФX0УУФФ вжзџџааб#XNє\  PњXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PћєP#бллй V йлFootnote Refлб#єAє\  PќєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P§єP#блл ССУУFirst Report and OrderФФ, 12 FCC Rcd at 8897, 9109, and 9137.б#XNє\  PўXP#бй d йзж In its УУSecond Recommended Decision, ФФthe Joint Board recommended that the special needs of unserved areas be investigated and subjected to a more comprehensive evaluation in a separate proceeding.лFootnote Refлб#єAє\  PџєP#бУУллл#Footnote Ref#лб#XNє\  PXP#бФФллв X0УУФФX0УУФФ вжЭџџааб#XNє\  PXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PєP#бллй V йлFootnote Refлб#єAє\  PєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PєP#блл ССУУSecond Recommended DecisionФФ, 13 FCC Rcd at 24764.б#XNє\  PXP#бй d йЭж Telephone penetration rates among lowЉincome consumers, and in insular, highЉcost, and tribal lands lag behind the penetration rates in the rest of the country.лFootnote Refлб#єAє\  PєP#бУУллл#Footnote Ref#лб#XNє\  PXP#бФФллв X0УУФФX0УУФФ вж3 џџааб#XNє\  PXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P єP#бллй V йлFootnote Refлб#єAє\  P єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P єP#блл ССFor recent data concerning which American households have access to wireline telephones, computers and the Internet, see УУFalling Through the Net: Definining the Digital Divide,ФФ National Telecommunications and Information Administration (NTIA), U.S. Department of Commerce (July 1999) (concluding, among other things, that where a person lives can greatly influence the liklihood of telephone ownership). The full report, additional charts, and links to the original Census data and survey instruments are available on NTIAРРs website: ўўВ§Њhttp://www.ntia.doc.govЊ§Вўўл Hyperlink лб#єAє\  PєP#бггггб Ћ бллhttp://www.ntia.doc.govл! Hyperlink !лб Њ бггггб#єAє\  PєP#бллб бўўВ§Њ€Њ§Вўў. б#XNє\  PXP#бй d й3 ж Indeed, while approximately 94.2 percent of all households in the United States have telephone service today,лFootnote Refлб#єAє\  PєP#бУУллл#Footnote Ref#лб#XNє\  PXP#бФФллв X0УУФФX0УУФФ вжџџааб#XNє\  PXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PєP#бллй V йлFootnote Refлб#єAє\  PєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PєP#блл ССУУTelephone Subscribership in the United StatesФФ, Report, Table 1 (Com. Car. Bur., rel. Feb 18, 1999).б#XNє\  PXP#бй d йж subscribership levels for very low income households (78.3 percent),лFootnote Refлб#єAє\  PєP#бУУллл#Footnote Ref#лб#XNє\  PXP#бФФллв X0УУФФX0УУФФ вжџџааб#XNє\  PXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PєP#бллй V йлFootnote Refлб#єAє\  PєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PєP#бллССУУTelephone Subscribership in the United StatesФФ, Report, Table 4 (households with annual income under $5,000).б#XNє\  PXP#бй d йж insular areas,лFootnote Refлб#єAє\  PєP#бУУллл#Footnote Ref#лб#XNє\  P XP#бФФллв X0УУФФX0УУФФ вжџџааб#XNє\  P!XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P"єP#бллй V йлFootnote Refлб#єAє\  P#єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P$єP#блл ССTelephone subscribership in Puerto Rico, for example, is 72 percent. УУFirst Report and OrderФФ, 12 FCC Rcd at 8843, n.281.б#XNє\  P%XP#бй d йж certain highЉcost areas,лFootnote Refлб#єAє\  P&єP#бУУллл#Footnote Ref#лб#XNє\  P'XP#бФФллв X0УУФФX0УУФФ вжМџџааб#XNє\  P(XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P)єP#бллй V йлFootnote Refлб#єAє\  P*єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P+єP#блл ССTelephone subscribership in the territory served by the Dell Telephone Cooperative in Texas, for example, is only about 82.8 percent. The penetration rate derived from the 1990 census. At that time, the Dell Telephone Cooperative was the company with the highest perЉloop costs in the nation.б#XNє\  P,XP#бй d йМж and tribal lands (46.6 percent),лFootnote Refлб#єAє\  P-єP#бУУллл#Footnote Ref#лб#XNє\  P.XP#бФФллв X0УУФФX0УУФФ вжHџџааб#XNє\  P/XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P0єP#бллй V йлFootnote Refлб#єAє\  P1єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P2єP#блл ССУУSeeФФ УУHousing of American Indians on Reservations Р!Р Equipment and FuelsФФ, Statistical Brief, Bureau of the Census, SB/95, April 1995 at 2 (based on 1990 Census data).б#XNє\  P3XP#бй d йHж are significantly lower than the national average. The Commission has stated that these low penetration rates are largely the result of Р Рincome disparity, compounded by the unique challenges these areas face by virtue of their location.РРлFootnote Refлб#єAє\  P4єP#бУУллл#Footnote Ref#лб#XNє\  P5XP#бФФллв X0УУФФX0УУФФ вжЧџџааб#XNє\  P6XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P7єP#бллй V йлFootnote Refлб#єAє\  P8єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P9єP#блл ССУУFirst Report and OrderФФ, 12 FCC Rcd at 8839.б#XNє\  P:XP#бй d йЧж л Para# лŒб#XNє\  P;XP#бллл Para# лб#XNє\  P<XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Commission has been particularly concerned that ўўЏ§Ї_Ref460150690Ї§ЏўўўўЏ§Ї_Ref456687240Ї§ЏўўIndiansлFootnote Refлб#єAє\  P=єP#бУУллл#Footnote Ref#лб#XNє\  P>XP#бФФллв X0УУФФX0УУФФ вж&џџааб#XNє\  P?XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P@єP#бллй V йлFootnote Refлб#єAє\  PAєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PBєP#блл ССIn this Notice, we refer to "Indians" and "Indian tribes." УУSee ФФThe Federally Recognized Indian Tribe List Act of 1994 (Indian Tribe Act), Pub. L. 103Љ454, 108 Stat. 4791 (1994). The term "Indian" shall include "all persons of Indian descent who are members of any recognized Indian tribe now under Federal jurisdiction, and all persons who are descendants of such members who were, on June 1, 1934, residing within the present boundaries of any Indian reservation, and shall further include all other persons of oneЉhalf or more Indian blood. . . . Eskimos and other aboriginal peoples of Alaska shall be considered Indians." 25 U.S.C. РР 479. The term "Indian tribe" means "any Indian or Alaska Native tribe, band, nation, pueblo, village or community that the Secretary of the Interior acknowledges to exist as an Indian tribe." 25 U.S.C. РР 479a(2). The Secretary of the Interior is required to publish in the Federal Register an annual list of all Indian tribes which the Secretary recognizes to be eligible for the special programs and services provided by the United States to Indians because of their status as Indians. 25 U.S.C. РР 479aЉ1.б#XNє\  PCXP#бй d й&ж on reservations, in comparison to other Americans, have less access even to basic telecommunications services. In 1998, the Commission began formally examining its relationship with Indian tribes and the unique issues involved in providing access to telephone service for Indians on reservations. As a first step, Commissioners and staff met with many tribal leaders and other Indian representatives to obtain their input. In meetings on April 30, 1998, and July 7, 1998, Commissioners and staff heard from a variety of tribal leaders, tribal telephone company representatives, academics, government personnel, and others with experience and expertise in the deployment of telecommunications services on reservations.лFootnote Refлб#єAє\  PDєP#бУУлл л#Footnote Ref#лб#XNє\  PEXP#бФФллв X0УУФФX0УУФФ вжСџџааб#XNє\  PFXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PGєP#бллй V йлFootnote Refлб#єAє\  PHєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PIєP#блл ССFor a list of participants, see Appendix A.б#XNє\  PJXP#бй d йСж Experts discussed problems ranging from geographic isolation to lack of information to economic barriers. These meetings provided an unprecedented opportunity for the Commission to hear about the variety of interrelated obstacles that have resulted in the lowest penetration rates in the country.лFootnote Refлб#єAє\  PKєP#бУУллл#Footnote Ref#лб#XNє\  PLXP#бФФллв X0УУФФX0УУФФ вжyџџааб#XNє\  PMXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PNєP#бллй V йлFootnote Refлб#єAє\  POєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PPєP#блл ССIn addition, in July 1998, Commissioner Gloria Tristani and Amy Zoslov, Chief, Auctions Division, Wireless Telecommunications Bureau, spoke at a three day National Native American Telecommunications Workshop in Albuquerque, New Mexico (УУNNAT Workshop)ФФ. The transcript of the workshop is available via the Internet: ўўВ§Њhttp://aises.uthscsa.edu/~yawakie/Proceedings/Proceedings.htmlЊ§Вўўл Hyperlink лб#єAє\  PQєP#бггггб Ћ бллhttp://aises.uthscsa.edu/~yawakie/Proceedings/Proceedings.htmlл! Hyperlink !лб Њ бггггб#єAє\  PRєP#бллб бўўВ§Њ€Њ§Вўў. б#XNє\  PSXP#бй d йyж Following these meetings, several of the experts returned in the fall of 1998, to provide a tutorial on Indian law for Commission staff.л Para# л б#XNє\  PTXP#бллл Para# лб#XNє\  PUXP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССBased on this informal dialogue with experts, the Commission determined that it would conduct public hearings to explore further the reasons for the lack of telephone service and to determine what specific actions the Commission could take that would improve access to telephone service on Indian reservations. The hearings, entitled Р РOvercoming Obstacles to Telephone Service for Indians on Reservations,РР BO Docket No. 99Љ11, provided an opportunity to obtain formal testimony and comments on the range of problems the Commission had begun to identify. The first field hearing was held on January 29, 1999 at the Indian Pueblo Cultural Center in Albuquerque, New Mexico.лFootnote Refлб#єAє\  PVєP#бУУллл#Footnote Ref#лб#XNє\  PWXP#бФФллв X0УУФФX0УУФФ вжћџџааб#XNє\  PXXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PYєP#бллй V йлFootnote Refлб#єAє\  PZєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P[єP#блл ССFederal Communications Commission Will Hold a Series of Public Hearings on Telephone Service for Indians on Reservations and Seeks Comment from the General Public on All Testimony and Other Evidence Presented Therein; УУPublic Notice, ФФBO Docket No. 99Љ11, DA 99Љ201 (OCBO rel. Jan. 21, 1999УУ) (Overcoming Obstacles Proceeding: Albuquerque HearingФФ).б#XNє\  P\XP#бй d йћж The second field hearing was held on March 23, 1999 at the Gila River Indian Community in Chandler, Arizona.лFootnote Refлб#єAє\  P]єP#бУУллл#Footnote Ref#лб#XNє\  P^XP#бФФллв X0УУФФX0УУФФ вж–џџааб#XNє\  P_XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P`єP#бллй V йлFootnote Refлб#єAє\  PaєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PbєP#блл ССFCC to Hold Second Public Hearing in Series on Telephone Service for Indians on Reservations; Set for March 23 in Chandler, Arizona, УУPublic NoticeФФ, BO Docket No. 99Љ11, DA 99Љ430 (OCBO rel. Mar. 2, 1999) (УУOvercoming Obstacles Proceeding: Arizona HearingФФ); Deadline Extended Until June 28, 1999 for Comments on Overcoming Obstacles to Telephone Service for Indians on Reservations, УУPublic Notice,ФФ BO Docket No. 99Љ11, DA 99Љ1010 (OCBO rel. May 27, 1999) (УУOvercoming Obstacles Proceeding)ФФ.б#XNє\  PcXP#бй d й–ж Each hearing consisted of three panels representing tribal authorities and tribal telephone companies, industry, and government and consumer groups.лFootnote Refлб#єAє\  PdєP#бУУллл#Footnote Ref#лб#XNє\  PeXP#бФФллв X0УУФФX0УУФФ вжСџџааб#XNє\  PfXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PgєP#бллй V йлFootnote Refлб#єAє\  PhєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PiєP#блл ССFor a list of participants, see Appendix B.б#XNє\  PjXP#бй d йСж The Commission heard extensive testimony on issues including the costs of delivering services to remote areas having very low population densities; the impact of the size and extent of local calling areas on affordability of service; the quality of telephone service on reservations; the complexities of governmental jurisdiction and sovereignty issues; and the effects on telephone service of low incomes and high unemployment on reservations. Transcripts of the hearings and comments filed by interested parties are available on the CommissionРРs website.лFootnote Refлб#єAє\  PkєP#бУУллл#Footnote Ref#лб#XNє\  PlXP#бФФллв X0УУФФX0УУФФ вжˆџџааб#XNє\  PmXP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  PnєP#бллй V йлFootnote Refлб#єAє\  PoєP#бУУллй d йФФл#Footnote Ref#лб#єAє\  PpєP#блл ССўўВ§Њhttp://www.fcc.gov/Panel_Discussions/Teleservice_reservations/Њ§Вўўл Hyperlink лб#єAє\  PqєP#бггггб Ћ бллHttp://www.fcc.gov/Panel_Discussions/Teleservice_reservations/л! Hyperlink !лб Њ бггггб#єAє\  PrєP#бллб бўўВ§Њ€Њ§Вўў. УУSeeФФ Appendix C for a list of parties filing comments BO Docket No. 99Љ11.б#XNє\  PsXP#бй d йˆж Comments filed in BO Docket Number 99Љ11 will be incorporated, where relevant, into the record of this proceeding.л Para# л б#XNє\  PtXP#бллл Para# лб#XNє\  PuXP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССFurther, in connection with each of the field hearings, Commissioners and staff made site visits to Indian reservations and triballyЉowned telephone companies. These included visits to the Rosebud Reservation, the Santa Domingo, Jemez, and Picuris Pueblos, and to Saddleback Communications, the Gila River Telephone Company, the Salt River PimaЉMaricopa Reservation, the Navajo Nation, the Hopi Reservation, and the Havasupai Reservation. These site visits provided an opportunity for Commissioners and staff to observe firsthand the state of telephone service in these reservations and pueblos and to hear directly from tribal members about their experiences. For example, Commissioners and staff visited the home of an elderly couple who could not afford the cost of installing a telephone in their home. The husband of the couple explained that he was suffering from a chronic illness, but was unable to reach the hospital or his doctor by telephone to schedule medical appointments and discuss his treatment. During another site visit, a tribal member stated that a relative had died during a medical emergency when his family was unable to call an ambulance in time when critical medical attention was needed. In addition, the trips to Saddleback Communications and the Gila River Telephone Company enabled Commission staff to view the successful operations of some triballyЉowned telephone companies.л Para# л б#XNє\  PvXP#бллб#єAє\  PwєP#бл Para# лб#єAє\  PxєP#бллг d гб#XNє\  PyXP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn this Further Notice of Proposed Rulemaking (Further Notice), the Commission addresses the unique issues that may limit telecommunications deployment and subscribership in the unserved or underserved regions of our Nation, including on tribal lands and in insular areas. In particular, the Commission seeks comment on current levels of deployment and subscribership in unserved, tribal and insular areas, including penetration rates, availability of telecommunications services, and possible impediments to increased deployment and penetration. With respect to tribal areas, the Commission seeks comment on issues that may be affecting the availability of universal service in tribal areas, including the assignment of jurisdiction, designation of eligible telecommunications carriers, and possible modifications to federal highЉcost and lowЉincome support mechanisms that may be necessary to promote deployment and subscribership in these areas. In particular, the Commission seeks comment on the possibility of allowing carriers to establish separate tribal study areas, raising the cap on the highЉcost fund to allow for growth based on separate tribal study areas, and revisions to its Lifeline rules. In a companion Notice of Proposed Rulemaking we are adopting today, we seek comment on the potential of wireless technology to provide basic telephone service to tribal lands.лFootnote Refлб#єAє\  PzєP#бУУллл#Footnote Ref#лб#XNє\  P{XP#бФФллв X0УУФФX0УУФФ вжџџааб#XNє\  P|XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#блллFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУExtending Wireless Service to Tribal Lands, ФФNotice of Proposed Rulemaking, WT Docket No. 99Љ266, FCC 99Љ205, (adopted Aug. 5, 1999).б#XNє\  P}XP#бй d йжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWith respect to unserved areas, the Commission seeks further comment regarding the implementation of section 214(e)(3) of the Act, which permits the Commission or state commissions to order a carrier to provide service to an unserved community, including the possibility of adopting a competitive bidding mechanism to identify the carrier or carriers best able to serve an unserved area. The Commission also seeks comment on possible modifications to the federal lowЉincome and rural health care support mechanisms in underserved areas, including tribal and insular areas, including the possibility of expanding LinkUp to include facilities based charges, and providing support for intrastate tollЉcalling and rural health care infrastructure. The Commission seeks comment on rule changes designed to enhance the availability of support for rural health care providers in insular areas, including determining the urban rate and the nearest large city. ўўЏ§Ї_Ref456687240Ї§ЏўўўўЏ§Ї_Toc454357523Ї§Џўў Through these efforts, we seek to ensure that unserved and underserved areas have access to telecommunications services. With respect to tribal lands, we also seek to ensure that our efforts are consistent with principles of tribal sovereignty, the federal trust relationship, and support for tribal selfЉdetermination.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#блHeading 1 лааб#XNє\  P}XP#бУ УУУззллг Ш гй : йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒви€иўўЏ§Ї_Toc454357523Ї§ЏўўўўЏ§Ї_Toc453729674Ї§ЏўўўўЏ§Ї_Toc453729674Ї§ЏўўўўЏ§Ї_Toc454357533Ї§ЏўўўўЏ§Ї_Toc454357533Ї§ЏўўўўЏ§Ї_Toc456170655Ї§ЏўўўўЏ§Ї_Toc456170655Ї§ЏўўўўЏ§Ї_Toc456674453Ї§ЏўўўўЏ§Ї_Toc456674453Ї§ЏўўўўЏ§Ї_Toc458418506Ї§ЏўўўўЏ§Ї_Toc458418506Ї§ЏўўўўЏ§Ї_Toc458419287Ї§ЏўўўўЏ§Ї_Toc458419287Ї§ЏўўўўЏ§Ї_Toc460144390Ї§ЏўўCurrent Levels of Deployment and SubscribershipўўЏ§Ї_Toc460144390Ї§Џўўл!Heading 1 !лзз ааФ ФФФб#єAє\  P}єP#бллй йл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn this section, we seek to gain a better understanding of the characteristics of unserved and underserved areas, including insular and tribal lands, which by their very nature are difficult to assess. We also seek comment on specific factors preventing deployment of telecommunications services in unserved areas and causing unusually low subscribership rates in underserved areas. We seek to determine which of these factors are common among rural, insular, highЉcost, and tribal lands, and which are unique to specific types of areas. We ask commenters to support their comments with empirical evidence, in addition to anecdotal evidence, to the extent possible.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 2 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc453922446Ї§ЏўўўўЏ§Ї_Toc453922446Ї§ЏўўўўЏ§Ї_Toc453922595Ї§ЏўўўўЏ§Ї_Toc453922595Ї§ЏўўўўЏ§Ї_Toc454003620Ї§ЏўўўўЏ§Ї_Toc454003620Ї§ЏўўўўЏ§Ї_Toc454026916Ї§ЏўўўўЏ§Ї_Toc454026916Ї§ЏўўўўЏ§Ї_Ref454029012Ї§ЏўўўўЏ§Ї_Ref454029012Ї§ЏўўўўЏ§Ї_Hlt454029043Ї§ЏўўўўЏ§Ї_Hlt454029043Ї§ЏўўўўЏ§Ї_Ref454029086Ї§ЏўўўўЏ§Ї_Ref454029086Ї§ЏўўўўЏ§Ї_Toc454087440Ї§ЏўўўўЏ§Ї_Toc454087440Ї§ЏўўўўЏ§Ї_Toc454240684Ї§ЏўўўўЏ§Ї_Toc454240684Ї§ЏўўўўЏ§Ї_Toc454357534Ї§ЏўўўўЏ§Ї_Toc454357534Ї§ЏўўўўЏ§Ї_Ref455545644Ї§ЏўўўўЏ§Ї_Ref455545644Ї§ЏўўўўЏ§Ї_Toc456170656Ї§ЏўўўўЏ§Ї_Toc456170656Ї§ЏўўўўЏ§Ї_Toc456674454Ї§ЏўўўўЏ§Ї_Toc456674454Ї§ЏўўўўЏ§Ї_Toc458418507Ї§ЏўўўўЏ§Ї_Toc458418507Ї§ЏўўўўЏ§Ї_Toc458419288Ї§ЏўўўўЏ§Ї_Toc458419288Ї§ЏўўўўЏ§Ї_Ref460048181Ї§ЏўўўўЏ§Ї_Ref460048181Ї§ЏўўўўЏ§Ї_Toc460144391Ї§ЏўўPenetration RatesўўЏ§Ї_Toc460144391Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Industry Analysis Division of the Common Carrier Bureau publishes a Subscribership Report three times per year.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУTelephone Subscribership in the United StatesФФ, Report, Table 1 (Com. Car. Bur., rel. Feb 18, 1999).б#XNє\  P}XP#бй d йж The data in this report is based on the Current Population Survey (CPS), conducted monthly by the Census Bureau to keep track of the unemployment rate and other socioЉeconomic conditions. The survey, however, is based on information from only 50,000 households nationwide and does not identify geographic areas with fewer than 100,000 people. Because many unserved, tribal and insular areas fall below this population threshold, the CPS cannot be used to estimate penetration rates for these areas. In addition, this data does not include areas of the United States that are not states, including Puerto Rico and the Virgin Islands. The long form of the decennial census, which is delivered to millions of households, contains a question about telephone subscribership. As a result, the census data can be used to estimate telephone penetration for smaller geographic areas. This data, however, is collected only every ten years and it takes the Census Bureau one year to compile results. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Toc453922447Ї§ЏўўўўЏ§Ї_Toc453922447Ї§ЏўўўўЏ§Ї_Toc453922596Ї§ЏўўўўЏ§Ї_Toc453922596Ї§ЏўўўўЏ§Ї_Toc454003621Ї§ЏўўўўЏ§Ї_Toc454003621Ї§ЏўўўўЏ§Ї_Toc454026917Ї§ЏўўўўЏ§Ї_Toc454026917Ї§ЏўўўўЏ§Ї_Toc454087441Ї§ЏўўўўЏ§Ї_Toc454087441Ї§ЏўўўўЏ§Ї_Toc454240685Ї§ЏўўўўЏ§Ї_Toc454240685Ї§ЏўўўўЏ§Ї_Toc454357535Ї§ЏўўўўЏ§Ї_Toc454357535Ї§ЏўўўўЏ§Ї_Toc456170657Ї§ЏўўўўЏ§Ї_Toc456170657Ї§ЏўўўўЏ§Ї_Toc456674455Ї§ЏўўWe seek detailed information, to the extent that it is available, on penetration rates in highЉcost areas, insular areas, tribal lands, and any other areas considered to be underserved. By the term penetration rate, we mean the percentage of households within a specified area that have telephone service in the housing unit.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЭ!џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССA housing unit is a place in which a household resides.б#XNє\  P}XP#бй d йЭж We seek this information on a national level, on a stateЉbyЉstate or territoryЉbyЉterritory level, and on an areaЉbyЉarea level. To the extent possible, we encourage commenters to provide the following additional information in each of the areas, and on each of the levels, where they measure penetration rates: (1) total population; (2) population density; (3) average annual income; and (4) average unemployment rate. We also ask that commenters briefly explain the methods by which they gather their data (УУe.g.ФФ, census data, statistical sampling, etc.). We also seek comment on the difficulty of getting such information, such as the difficulty of mapping a telephone service territory onto the census territories (such as census block groups) because the boundaries may not always coincide, and questions concerning the definitions of the terms Р РhouseholdРР and Р Рtelephone service.РРл Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc456674455Ї§ЏўўўўЏ§Ї_Toc458418508Ї§ЏўўўўЏ§Ї_Toc458418508Ї§ЏўўўўЏ§Ї_Toc458419289Ї§ЏўўўўЏ§Ї_Toc458419289Ї§ЏўўўўЏ§Ї_Toc460144392Ї§ЏўўAvailability and Cost of Telecommunications ServicesўўЏ§Ї_Toc460144392Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Toc453735462Ї§ЏўўIn each of the areas, and on each of the levels described above in sectionўўЏ§Ї_Toc453735462Ї§Џўў II.A above, we seek to determine the nature of the telecommunications services available and the costs of such services. In particular, we seek comment on the extent to which these areas receive the following service, if any: basic telephone service, services included within the definition of universal service,лFootnote Refлб#єAє\  P}єP#бУУллўўЏ§Ї_Ref457798520Ї§Џўўл#Footnote Ref#лб#XNє\  P}XP#бФФллўўЏ§Ї_Ref457798520Ї§Џўўв X0УУФФX0УУФФ вж…"џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССThe following services or functionalities are supported by federal universal service support mechanisms: singleЉparty service; voice grade access to the public switched network; DTMF signaling or its functional equivalent; access to emergency services; access to operator services; access to interexchange service; access to directory assistance; and toll limitation services for qualifying lowЉincome consumers. 47 C.F.R. РР 54.101(a). УУSee First Report and Order, ФФ12 FCC Rcd at 8809.б#XNє\  P}XP#бй d й…ж and/or advanced telecommunications services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж#џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССSection 706(b) of the Act defines Р Рadvanced telecommunications capabilityРР as Р РhighЉspeed, switched, broadband telecommunications capability that enables users to originate and receive highЉquality voice, data, graphics, and video telecommunications using any technology.РР 47 U.S.C. РР706(b). The Commission defined Р РbroadbandРР as having the capability of supporting a bandwidth in excess of 200 kbps in the last mile, both from the provider to the consumer and from the consumer to the provider. УУSeeФФ УУAn Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, and Possible Steps to Accelerate Such Deployment Pursuant to Section 706 of the Telecommunications Act of 1998ФФ, Report on Advanced Telecommunications Capability, CC Docket No. 98Љ146, FCC 99Љ5 (rel. Feb. 2, 1999) at para. 20. б#XNє\  P}XP#бй d йж We also seek comment on whether any carrier is providing the following services and the approximate number of households served by each service: wireline, wireless, Basic Exchange Telecommunications Radio Systems (BETRS),лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЙ$џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССBETRS is a twoЉway channel wireless service used to provide basic exchange service to remote rural areas of the country. УУBasic Exchange Telecommunications Radio Service,ФФ Report and Order, CC Docket No. 86Љ495, 3 FCC Rcd 214 (1988). УУSee ФФ47 C.F.R. РРРР 22.99, 22.725, 22.727.б#XNє\  P}XP#бй d йЙж or other telecommunications services; cable television; direct broadcast satellite service; other satellite services that provide voice and data, such as those provided through VSAT networks; Internet service; and electric service. In addition, we seek comment on the monthly rate for each of these services. With specific regard to basic telephone service, we seek comment on the average monthly bill for local service, local toll service, and longЉdistance service.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTo the extent that underserved, highЉcost, insular, and/or tribal lands have basic telephone service, we seek comment on whether the local calling area includes the nearest metropolitan area or other area where the nearest medical, government, cultural or entertainment facilities exist, УУi.eФФ., the Р Рcommunity of interest.РР For unserved areas, and in particular tribal lands, we also seek comment to determine whether these areas fall within the designated service area of existing carriers, regardless of whether such carriers are providing service to the area.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Toc453922448Ї§ЏўўўўЏ§Ї_Toc453922448Ї§ЏўўўўЏ§Ї_Toc453922597Ї§ЏўўўўЏ§Ї_Toc453922597Ї§ЏўўўўЏ§Ї_Toc454003622Ї§ЏўўўўЏ§Ї_Toc454003622Ї§ЏўўўўЏ§Ї_Toc454026918Ї§ЏўўўўЏ§Ї_Toc454026918Ї§ЏўўўўЏ§Ї_Toc454087442Ї§ЏўўўўЏ§Ї_Toc454087442Ї§ЏўўўўЏ§Ї_Toc454240686Ї§Џўў We seek comment on the extent to which existing facilities currently used to provide other services (УУe.gФФ., radio broadcast towers, cable television plant, electrical poles and satellite infrastructure) could be adapted to provide the services included within the definition of universal service.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЖ%џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee ФФn. 34, УУsupraФФ. б#XNє\  P}XP#бй d йЖж We also seek comment on whether specific services included within the definition of universal service could not be provided via these facilities. We seek comment on the extent to which facilities used to provide telecommunications service to customers outside the unserved or underserved areas exist adjacent to or nearby the unserved or underserved areas. In particular, we seek comment on whether railroad tracks, or towers used for the placement of antennas, are found in these adjacent areas. We seek comment on what role the Commission might play in encouraging the use of these other facilities to provide service in underserved areas. For example, we seek comment on whether the Commission, or some other entity, should develop a database to maintain information about facilities that could be used to provide service in currently unserved or underserved areas, including tribal lands and insular areas.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe also seek comment on the possible shared use of existing federal telecommunications infrastructure, facilities or other resources, including government rightsЉofЉway, to provide service in unserved or underserved areas, including tribal and insular areas. We seek comment on whether federal telecommunications resources could be made available in the short term to serve as connecting backbone infrastructure for health and safety telecommunications in unserved areas. We encourage federal entities with government owned telecommunications resources, particularly the Bureau of Indian Affairs, to comment on this issue. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIndividuals from Indian communities, state agencies and the telecommunications industry have commented that satellite and terrestrial wireless systems may represent practical and costЉeffective alternatives for providing service in unserved areas, including tribal lands.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж:&џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee e. g.ФФ, УУOvercoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of Gene DeJordy, Executive Director, Western Wireless, p. 94 (currently serves 23 Indian reservations); УУOvercoming Obstacles Proceeding: Arizona Hearing, ФФTestimony of Carl Artman, Airadigm Communications, Inc., p. 100 (Oneida tribe invested in its own wireless communications because of its lower cost of deployment and maintenance when compared to wireline); УУOvercoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of Francis Mike, Navajo Communications Company, p. 84Љ89 (discussing the use of satellite services as a solution to meet Indian telecommunications needs)б#XNє\  P}XP#бй d й:ж In the pending 2 GHz proceeding, which proposes policies and rules for licensing and operation of the 2 GHz mobile satellite service (MSS) systems in the United States,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжƒ'џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл In the Matter of The Establishment of Policies and Service Rules for The Mobile Satellite Service in The 2 GHz Band, IB Docket No. 99Љ81, RMЉ9328, Notice of Proposed Rulemaking, FCC 99Љ50, para. 95 (rel. March 25, 1999) (УУ2 GHz Proceeding)ФФ.б#XNє\  P}XP#бй d йƒж the Commission sought comment on incentives and policies to encourage provision of satellite services to unserved, rural, insular or economically isolated areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЄ(џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУIdФФ. at para. 95.б#XNє\  P}XP#бй d йЄж The commenters generally support the CommissionРРs tentative conclusion that satellites represent an excellent technology for providing basic and advanced telecommunications services to unserved areas, including tribal lands.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж‘)џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУSee 2 GHz Proceeding: ФФComments of Boeing at 16Љ18, Celsat at 28Љ29, Constellation at 27Љ28, Globalstar at 44Љ46, ICO at 19Љ21, ICO at 19Љ21, ICO USA Service Group (BT NA, Hughes, Telmex, and TRW) at 44Љ46, Iridium at 41Љ43, MCHI at 26, and SIA at 2Љ3.б#XNє\  P}XP#бй d й‘ж Several commenters stated that the Commission should take positive steps to encourage access to Universal Service Funds by satellite operators or service providers. Several commenters also requested that the Commission should identify express and implicit regulatory provisions that may prevent satellite providers from seeking universal support subsidies and reform those provisions, or forbear from imposing these provision, so that MSS providers can fully participate in the Universal Service Support initiative.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж *џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУSee 2 GHz Proceeding: ФФComments of Globalstar at 44Љ46 and MCHI at 26; reply comments of ICO USA Service Group 44Љ46.б#XNє\  P}XP#бй d й жл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССSatellite networks, used either on a stand alone basis or in combination with a terrestrial wireless network, may offer a cost advantage over wireline or other alternatives in remote areas where a limited population may not provide the economies of scale to support the deployment of wireline or other networks for each community.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжГ+џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФССл#Footnote Ref#лб#єAє\  P}єP#бллУУSee, e.g., Overcoming Obstacles Proceeding: ФФComments of Skybridge L.L.C., at p. 4 (Р Р[t]he geographic and economic considerations that make service to reservations unattractive to terrestrial networksР8Рare not an issue for providers of satellite telecommunications. . . .РР)б#XNє\  P}XP#бй d йГж Because satellites have large coverage areas, and in many cases, can reach an entire nation, satellite providers may achieve greater economies of scale in serving isolated areas since the costs of deployment could be spread across a number of communities.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж†,џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSee, e.g.,ФФ УУOvercoming Obstacles Proceeding: ФФComments of ICO Global Communications (Holding) Limited, at p. 3 (suggesting that with satellite service, incremental costs of adding additional subscribers in highЉcost areas is low).б#XNє\  P}XP#бй d й†ж The basic buildЉout required to obtain satellite service is for earth stations to transmit and receive satellite signals.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж-џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй Ќ йлFootnote Refлб#єAє\  P}єP#бУУллй Ш йФФл#Footnote Ref#лб#єAє\  P}єP#бллг aa гССWe note that American Mobile Satellite Corporation, a GSO MSS licensee, is providing service to a police force in the Navajo Nation and to the remote community of Tortilla Flat, Arizona, and that General Communications, Inc., an earth station operator, provides voice and private line services to fifty rural Alaskan Bush communities.б#XNє\  P}XP#бй Ш йг dd гж We seek comment on why satellite or terrestrial wireless systems have not been used more extensively to serve these areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж..џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g., ФФ УУOvercoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of George Arthur, Council Delegate, Navajo Nation, p. 43 (satellite services are too expensive for use in resolving Indian telecommunication needs). We note that in a companion Notice of Proposed Rulemaking adopted today, we are seeking comment on: (1) whether certain changes to Commission rules would provide greater incentives for existing wireless and satellite licensees to extend service to tribal lands and other unserved areas; and (2) ways the Commisison might encourage deployment of wireless and satelliteЉbased telecommunications service to tribal lands and other unserved areas through the Commission's development and licensing of new wireless and satellite services. УУSee Extending Wireless Service to Tribal Lands, ФФNotice of Proposed Rulemaking, WT Docket No. 99Љ266, FCC 99Љ205, (adopted Aug. 5, 1999).УУб#XNє\  P}XP#бй d йФФ.ж Specifically, we seek comments regarding the particular characteristics of satellite or terrestrial wireless systems that render these technologies suited for serving unserved areas, the costs associated with deployment, the availability of federal universal service support, and any other impediments to deployment. To the extent that costs deter satellite and terrestrial wireless deployment, we seek comment on what actions the Commission should take to support the establishment and maintenance of satellite and terrestrial wireless services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжБ/џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССSeveral commenters to the УУOvercoming Obstacles ProceedingФФ expressed concern over lack of access to universal service funds. УУSee, e.g.,ФФ Comments of the Cellular Telecommunications Industry Association (June 28, 1999) at p. 1 (Р РFor wireless carriers, the most significant obstacle to offering basic telecommunications service is the CommissionРРs present implementation of Universal Service support mechanismsРР); УУOvercoming Obstacles Proceeding: Arizona Hearing, ФФTestimony of Richard Watkins, Smith Bagley, Inc., p. 111 (Р Р[U]niversal service support [must be] made available to wireless carriersРР). УУSee alsoФФ, УУOvercoming Obstacles Proceeding: Arizona Hearing, ФФTestimony of Jim Irvin, Commissioner Chairman, Arizona Corporation Commission, p. 143Љ151.б#XNє\  P}XP#бй d йБж We ask parties to comment on whether specific aspect of our universal service rules may deter both current and future satellite services providers from providing service to rural, insular, and other unserved communities, and what specific steps the Commission can undertake to encourage the use of universal service support by satellite service providers. We also seek comment on any other actions the Commission should take to encourage the deployment of the most costЉeffective, practical solution in these geographically extreme areas.л Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc454240686Ї§ЏўўўўЏ§Ї_Toc454357536Ї§ЏўўўўЏ§Ї_Toc454357536Ї§ЏўўўўЏ§Ї_Ref455545423Ї§ЏўўўўЏ§Ї_Ref455545423Ї§ЏўўўўЏ§Ї_Ref455545427Ї§ЏўўўўЏ§Ї_Ref455545427Ї§ЏўўўўЏ§Ї_Hlt455545458Ї§ЏўўўўЏ§Ї_Hlt455545458Ї§ЏўўўўЏ§Ї_Ref455545629Ї§ЏўўўўЏ§Ї_Ref455545629Ї§ЏўўўўЏ§Ї_Ref455545788Ї§ЏўўўўЏ§Ї_Ref455545788Ї§ЏўўўўЏ§Ї_Toc456170658Ї§ЏўўўўЏ§Ї_Toc456170658Ї§ЏўўўўЏ§Ї_Toc456674456Ї§ЏўўўўЏ§Ї_Toc456674456Ї§ЏўўўўЏ§Ї_Toc458418509Ї§ЏўўўўЏ§Ї_Toc458418509Ї§ЏўўўўЏ§Ї_Toc458419290Ї§ЏўўўўЏ§Ї_Toc458419290Ї§ЏўўўўЏ§Ї_Toc460144393Ї§ЏўўImpediments to Increased PenetrationўўЏ§Ї_Toc460144393Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAn important step in increasing low penetration in unserved or underserved highЉcost, insular, and tribal lands is understanding the impediments to higher penetration rates. Accordingly, in this section, we seek comment on the nature of such impediments. To facilitate discussion, we have divided this issue into the categories described below. These categories are not intended to be exhaustive, however, and we encourage commenters to discuss any additional impediments to increased penetration that they are able to identify. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Toc453402586Ї§ЏўўўўЏ§Ї_Toc453402586Ї§ЏўўўўЏ§Ї_Toc453729685Ї§ЏўўўўЏ§Ї_Toc453729685Ї§ЏўўўўЏ§Ї_Toc453735463Ї§ЏўўўўЏ§Ї_Toc453735463Ї§ЏўўўўЏ§Ї_Toc453922449Ї§ЏўўўўЏ§Ї_Toc453922449Ї§ЏўўўўЏ§Ї_Toc453922598Ї§ЏўўўўЏ§Ї_Toc453922598Ї§ЏўўўўЏ§Ї_Toc454003623Ї§ЏўўўўЏ§Ї_Toc454003623Ї§ЏўўўўЏ§Ї_Toc454026919Ї§ЏўўўўЏ§Ї_Toc454026919Ї§ЏўўўўЏ§Ї_Toc454087443Ї§ЏўўўўЏ§Ї_Toc454087443Ї§ЏўўўўЏ§Ї_Toc454240687Ї§ЏўўIn addition to identifying impediments to increased penetration rates, we also ask commenters to discuss potential solutions for overcoming those impediments. We do not reach tentative conclusions on any of the proposals discussed below. Instead, we seek comment on the need for the Commission to address the specific concerns set forth below and the costs and benefits of the proposals discussed. We seek comment on how the Commission should measure its success in satisfying the mandate in the 1996 Act that consumers in all regions of the nation have access to telecommunications services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЙ0џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ 47 U.S.C. РР 254(b)(3).б#XNє\  P}XP#бй d йЙж We seek comment on what measure we could use, other than penetration rates, to evaluate our success in achieving this goal.л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc454240687Ї§ЏўўўўЏ§Ї_Toc454357537Ї§ЏўўўўЏ§Ї_Toc454357537Ї§ЏўўўўЏ§Ї_Ref455545744Ї§ЏўўўўЏ§Ї_Ref455545744Ї§ЏўўўўЏ§Ї_Toc456674457Ї§ЏўўўўЏ§Ї_Toc456674457Ї§ЏўўўўЏ§Ї_Toc458418510Ї§ЏўўDemographic FactorsўўЏ§Ї_Toc458418510Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn section II.A above, we ask commenters to supply data for highЉcost, insular, and tribal lands regarding: (1) total population; (2) population density; (3) average annual income; and (4) average unemployment rate. Bureau of Census data indicates that income and education levels greatly affect telephone penetration rates and that geographic location can also make a difference.лFootnote Refлб#єAє\  P}єP#бУУллўўЏ§Ї_Ref457724661Ї§ЏўўўўЏ§Ї_Ref457724661Ї§ЏўўўўЏ§ЇfixЇ§ЏўўўўЏ§ЇfixЇ§Џўўл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжI 1џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССFalling Through the Net II: New Data on the Digital Divide, National Telecommunications and Information, U.S. Department of Commerce (July 1998) at 2Љ3. This report may be found at ўўВ§Њhttp://www.ntia.doc.gov/ntiahome/net2/falling.htmlЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.ntia.doc.gov/ntiahome/net2/falliўўЏ§Ї_Hlt460397095Ї§ЏўўnўўЏ§Ї_Hlt460397095Ї§Џўўg.htmlл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў. б#XNє\  P}XP#бй d йI ж In this section, we seek specific comments on how these demographic factors affect penetration rates. For example, do income levels have a greater effect on penetration rates than population density? Do the combined effects of low income and low population density have an exponential effect on penetration rates? We seek comment on whether other demographic factors significantly affect penetration rates in highЉcost, insular, and tribal lands, УУe.g.ФФ, education levels.л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453402587Ї§ЏўўўўЏ§Ї_Toc453402587Ї§ЏўўўўЏ§Ї_Toc453729686Ї§ЏўўўўЏ§Ї_Toc453729686Ї§ЏўўўўЏ§Ї_Toc453735464Ї§ЏўўўўЏ§Ї_Toc453735464Ї§ЏўўўўЏ§Ї_Toc453922450Ї§ЏўўўўЏ§Ї_Toc453922450Ї§ЏўўўўЏ§Ї_Toc453922599Ї§ЏўўўўЏ§Ї_Toc453922599Ї§ЏўўўўЏ§Ї_Toc454003624Ї§ЏўўўўЏ§Ї_Toc454003624Ї§ЏўўўўЏ§Ї_Toc454026920Ї§ЏўўўўЏ§Ї_Toc454026920Ї§ЏўўўўЏ§Ї_Toc454087444Ї§ЏўўўўЏ§Ї_Toc454087444Ї§ЏўўўўЏ§Ї_Toc454240688Ї§ЏўўўўЏ§Ї_Toc454240688Ї§ЏўўўўЏ§Ї_Toc454357538Ї§ЏўўўўЏ§Ї_Toc454357538Ї§ЏўўўўЏ§Ї_Toc456674458Ї§ЏўўўўЏ§Ї_Toc456674458Ї§ЏўўўўЏ§Ї_Toc458418511Ї§ЏўўGeographic FactorsўўЏ§Ї_Toc458418511Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССOne of the more obvious explanations for low penetration rates in highЉcost, insular, and tribal lands is that these areas are unusually expensive to serve. Distance appears to be one reason line extension charges are so high. During the New Mexico and Arizona Field Hearings, several tribes testified about the remoteness of their locations and the challenges that remote locations presented in terms of telecommunications services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж„2џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ УУOvercoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of Arnold Cassador, President Jicarilla Apache Tribe, p. 49 (because of remote location many people are without access to telephone service); Testimony of Anthony Lucio, Councilman, Zuni Pueblo, p. 62 (Zuni is the farthest of the 19 pueblos); Testimony of George Arthur, Council Delegate, Navajo Nation, at p. 1 (implementing a telecommunications network on a remote and expansive reservation presents challenges).б#XNє\  P}XP#бй d й„ж For example, in 1997, the Navajo Communications Company issued 72 line extension charge estimates that averaged more than $40,000, including eight over $100,000 and one over $157,000.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж3џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССУУSeeФФ Navajo Communications Company, response to Arizona Corporation Commission Data Request, ACC Docket No. TЉ2115Љ97Љ640 (Unserved Areas), Jun. 19, 1998 at attachment B (placed on the record of CC Docket No. 96Љ45); УУOvercoming Obstacles Proceeding: Arizona Hearing, ФФTestimony of James Irvin, Commissioner Chairman, Arizona Corporation Commission, p. 147. б#XNє\  P}XP#бй d йж The cost for installation of a line on the Salt River PimaЉMaricopa Indian Community (located in the heart of metropolitan Phoenix) is $5,000.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж^4џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУOvercoming Obstacles Proceeding, ФФTestimony of Ivan Makil, President, Salt River PimaЉMaricopa Indian Community, p. 1. For a discussion of Rural Utility Services programs, УУseeФФ УУOvercoming Obstacles Proceeding: Arizona Hearing, ФФTestimony of Christopher McLean, Deputy Administrator, Rural Utility Service, p. 18Љ26; УУsee also ФФTestimony of Madonna Peltier Yawakie, Minnesota American Indian Science and Engineering Society, p. 154Љ157.б#XNє\  P}XP#бй d й^ж We seek comment on the general terrain, including the existence of mountains, plains, swamps, water, plateaus, canyons, etc., that create challenges in providing telecommunications services. We also seek comment on the extent to which the absence of necessary infrastructure, for example roads or electrical capacity, constitutes a barrier to deployment in rural, insular, highЉcost, and tribal landsлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжы5џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee Assessment of Technology Infrastructure in Native Communities, Final Report, July 1999ФФ, College of Engineering, New Mexico State University, Research sponsored by the Economic Development Administration, U.S. Department of Commerce, at p. 20 (УУAssessment of InfrastructureФФ) (placed on the record of CC Docket No. 96Љ45).УУб#XNє\  P}XP#бй d йФФыж. л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453402588Ї§ЏўўўўЏ§Ї_Toc453402588Ї§ЏўўўўЏ§Ї_Toc453729687Ї§ЏўўўўЏ§Ї_Toc453729687Ї§ЏўўўўЏ§Ї_Toc453735465Ї§ЏўўўўЏ§Ї_Toc453735465Ї§ЏўўўўЏ§Ї_Toc453922451Ї§ЏўўўўЏ§Ї_Toc453922451Ї§ЏўўўўЏ§Ї_Toc453922600Ї§ЏўўўўЏ§Ї_Toc453922600Ї§ЏўўўўЏ§Ї_Toc454003625Ї§ЏўўўўЏ§Ї_Toc454003625Ї§ЏўўўўЏ§Ї_Toc454026921Ї§ЏўўўўЏ§Ї_Toc454026921Ї§ЏўўўўЏ§Ї_Toc454087445Ї§ЏўўўўЏ§Ї_Toc454087445Ї§ЏўўўўЏ§Ї_Toc454240689Ї§ЏўўўўЏ§Ї_Toc454240689Ї§ЏўўўўЏ§Ї_Toc454357539Ї§ЏўўўўЏ§Ї_Toc454357539Ї§ЏўўўўЏ§Ї_Toc456674459Ї§ЏўўўўЏ§Ї_Toc456674459Ї§ЏўўўўЏ§Ї_Toc458418512Ї§ЏўўFinancial FactorsўўЏ§Ї_Toc458418512Ї§Џўў л! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether difficulties in obtaining access to financing limits the ability of carriers to provide service in unserved or underserved rural, insular, highЉcost, and tribal lands. We seek comment on any specific provisions in loan agreements that serve to deter deployment in these areas. We also seek comment on any measures the Commission could take that would diminish the risks faced by investors and would enhance the ability of carriers to attract financing necessary to provide service in unserved or underserved rural, insular, highЉcost, and tribal lands. We also seek comment on the availability and utility of existing programs that may provide funding and assistance to carriers seeking to provide telecommunications service in unserved areas and underserved areas, including tribal and insular areas,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжн6џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССУУSeeФФ Native Networking: Telecommunications and Information Technology and Indian Country; Benton Foundation (April 1999) at pages 20Љ39. This Report is available on the Internet at ўўВ§Њhttp://www.benton.org/Library/Native/*Њ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.benton.org/Library/Native/*л! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў. б#XNє\  P}XP#бй d йнж including whether the availability of existing sources of funding and assistance is adequately publicized.лFootnote Refлб#єAє\  P}єP#бУУлл л#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж7џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ УУOvercoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of Anthony Lucio, Councilman, Zuni Pueblo, p. 63.б#XNє\  P}XP#бй d йж л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453402590Ї§ЏўўўўЏ§Ї_Toc453402590Ї§ЏўўўўЏ§Ї_Toc453729689Ї§ЏўўўўЏ§Ї_Toc453729689Ї§ЏўўўўЏ§Ї_Toc453735467Ї§ЏўўўўЏ§Ї_Toc453735467Ї§ЏўўўўЏ§Ї_Toc453922452Ї§ЏўўўўЏ§Ї_Toc453922452Ї§ЏўўўўЏ§Ї_Toc453922601Ї§ЏўўўўЏ§Ї_Toc453922601Ї§ЏўўўўЏ§Ї_Toc454003626Ї§ЏўўўўЏ§Ї_Toc454003626Ї§ЏўўўўЏ§Ї_Toc454026922Ї§ЏўўўўЏ§Ї_Toc454026922Ї§ЏўўўўЏ§Ї_Toc454087446Ї§ЏўўўўЏ§Ї_Toc454087446Ї§ЏўўўўЏ§Ї_Toc454240690Ї§ЏўўўўЏ§Ї_Toc454240690Ї§ЏўўўўЏ§Ї_Toc454357540Ї§ЏўўўўЏ§Ї_Toc454357540Ї§ЏўўўўЏ§Ї_Toc456674460Ї§ЏўўўўЏ§Ї_Toc456674460Ї§ЏўўўўЏ§Ї_Toc458418513Ї§ЏўўCultural FactorsўўЏ§Ї_Toc458418513Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on the extent to which cultural values or lifestyle preferences deter consumer interest in subscribing to telecommunications services in unserved or underserved areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж№8џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee Overcoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of Stanley Pino, All Indians Pueblo Council; Office of Technology Assessment,УУ ФФUnited States Congress, УУTelecommunication Technology and Native Americans: Opportunities and ChallengesФФ, OTAЉITCЉ621 (Washington, DC: U.S. Government Printing Office, August, 1995).б#XNє\  P}XP#бй d й№ж For example, we seek comment on whether concerns about cultural preservation, religion, identity, and values may affect the willingness of tribal authorities to allow or promote the availability of telecommunications services in their communities.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжh9џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g.,ФФ УУOvercoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of Eagle Rael, Governor, Picuris Pueblo, p. 58 (describing reluctance to bury telephone cables near ceremonial sites). Madonna Peltier Yawakie specifically refutes the position that Indians, because of cultural concerns, fail to use telephones or are communal in their use of telephones. УУSee Overcoming Obstacles Proceeding, ФФTestimony of Madonna Peltier Yawakie, at p. 1.б#XNє\  P}XP#бй d йhж Similarly, we seek comment on whether there are a significant number of individuals that simply do not want telecommunications services because of personal lifestyle choices. We also seek comment on the extent to which carriers justify the lack of deployment in unserved or underserved rural, insular, highЉcost, and tribal lands based on concerns for cultural preservation and whether these concerns are legitimate. In addition, we seek comment on whether the CommissionРРs efforts to promote deployment and subscribership in unserved and underserved areas should be constrained by the cultural choices expressed by tribal authorities or other local leadership.л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453402589Ї§ЏўўўўЏ§Ї_Toc453402589Ї§ЏўўўўЏ§Ї_Toc453729688Ї§ЏўўўўЏ§Ї_Toc453729688Ї§ЏўўўўЏ§Ї_Toc453735466Ї§ЏўўўўЏ§Ї_Toc453735466Ї§ЏўўўўЏ§Ї_Toc453922453Ї§ЏўўўўЏ§Ї_Toc453922453Ї§ЏўўўўЏ§Ї_Toc453922602Ї§ЏўўўўЏ§Ї_Toc453922602Ї§ЏўўўўЏ§Ї_Toc454003627Ї§ЏўўўўЏ§Ї_Toc454003627Ї§ЏўўўўЏ§Ї_Toc454026923Ї§ЏўўўўЏ§Ї_Toc454026923Ї§ЏўўўўЏ§Ї_Toc454087447Ї§ЏўўўўЏ§Ї_Toc454087447Ї§ЏўўўўЏ§Ї_Toc454240691Ї§ЏўўўўЏ§Ї_Toc454240691Ї§ЏўўўўЏ§Ї_Toc454357542Ї§ЏўўўўЏ§Ї_Toc454357542Ї§ЏўўўўЏ§Ї_Toc456674461Ї§ЏўўўўЏ§Ї_Toc456674461Ї§ЏўўўўЏ§Ї_Toc458418514Ї§ЏўўRegulatory FactorsўўЏ§Ї_Toc458418514Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn this section, we seek comment on impediments imposed by various laws, regulations or practices that may deter carriers from providing service to unserved or underserved areas, including federal, state, tribal or insular authorities.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССFederal Regulatory Impediments. ФФWe seek comment on the current process for obtaining access to rightsЉofЉway on tribal lands and to what extent this process deters carriers from providing service on tribal lands.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжо:џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g., Overcoming Obstacles Proceeding, ФФTestimony of George Arthur, Navajo Nation; Parker Sando, Р РRight of Way and Easement Practices,РР presented at AISES National Native American Telecommunications Workshop, July 28Љ30, 1998, Albuquerque, New Mexico, workshop transcript at 5Љ4 (УУNNAT Workshop Transcript).ФФб#XNє\  P}XP#бй d йож Under the RightЉofЉWay Act of 1948, there are three critical components for obtaining rightsЉofЉway over tribal land: (1) the Secretary of the Interior through the Bureau of Indian Affairs must grant the easement for the rightЉofЉway;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЇ;џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл 25 U.S.C. РР 323 (1998).б#XNє\  P}XP#бй d йЇж (2) compensation of not less than fair market value, as determined by the Secretary, plus severance damages must be paid to the property owner;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЇ<џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл 25 U.S.C. РР 325 (1998).б#XNє\  P}XP#бй d йЇж and (3) tribal consent must be obtained.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЇ=џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл 25 U.S.C. РР 324 (1998).б#XNє\  P}XP#бй d йЇж The first of these requires a service provider to undergo environmental assessments and secure cultural and archaeological clearances from the Bureau of Indian Affairs.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжђ>џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл Raymond Etcitty, Р РRight of Way and Easement Practices,РР УУNNAT Workshop TranscriptФФ, p. 5Љ1.б#XNє\  P}XP#бй d йђж The second component requires the service provider to obtain the standard appraisal it would for any easement but under standards set by Bureau of Indian Affairs.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжѓ?џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл Steve Campbell, Р РRight of Way and Easement Practices,РР УУNNAT Workshop TranscriptФФ , p. 5Љ4. б#XNє\  P}XP#бй d йѓж Finally, the service provider must also meet any conditions imposed by the particular tribe because the tribe has the ultimate authority to accept or reject the rightЉofЉway. Carriers have indicated that this process is a significant barrier to entry.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж7@џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУSee, e.gФФ., УУOvercoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of Francis Mike, Navajo Communications, p. 87 (Р Рvery long, difficult, and expensive Bureau of Indian Affairs and Navajo Nation rightЉofЉway processesРР); Testimony of Arthur Martinez, Western New Mexico Telephone Company, p. 92 (Р Рpermit process is tedious and in many cases can take up to a year to completeРР); Testimony of Gene DeJordy, Western Wireless, p. 96; Testimony of Aloa Stevens, Citizens Communications, p. 94; Testimony of Richard Watkins, Smith Bagley, p. 115; УУsee also Overcoming Obstacles Proceeding: ФФComments ofУУ ФФUS West Communications, Inc. at p. 5б#XNє\  P}XP#бй d й. 7ж Tribal authorities have expressed concern about the ability of carriers to use existing rightsЉofЉway to establish new terrestrial networks without obtaining the consent of the tribal authority.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжAџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g, Overcoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of George Arthur, Navajo Nation, p. 43.б#XNє\  P}XP#бй d йж In addition, carriers and tribal authorities appear to have concerns concerning appropriate compensation for use of rightsЉofЉway in tribal lands.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжўBџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССУУSee Overcoming Obstacles Proceeding: Albuquerque HearingФФ, Testimony of Francis Mike, Navajo Communications, p. 87 ("exorbitant fees for rightЉofЉway acquisition"); Testimony of George Arthur, Navajo Nation, p. 43 ("[the carrier] ... utilized the New Mexico transportation highway right of ways ... [to] avoid having to deal with the Navajo Nation."); Testimony of Gene DeJordy, Western Wireless, p. 96 ("An additional problem ... is the placement and operation of antenna towers."); Testimony of Linda Lovejoy, New Mexico Public Regulations Commission, p. 115 ("[T]here are many obstacles ... [o]ne of these is ... rightЉofЉway from the tribal authorities and federal agencies.") УУSee alsoФФ УУOvercoming Obstacles Proceeding: ФФComments of US West Communications, Inc., at p. 5 ("tribes resisted requests ... and quoted exorbitant fees for [rightsЉofЉway].")б#XNє\  P}XP#бй d йўж To the extent rightsЉofЉway management issues pose a barrier to entry on tribal lands,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж2Cџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee generallyФФ, УУOvercoming Obstacles Proceeding: ФФResponse to Questionnaire filed by Governor Mary Thomas, Gila River Indian Community, pp. 4, 6.б#XNє\  P}XP#бй d й2ж we seek comment on what role, if any, the Commission could play in addressing these issues.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжXDџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g., Promotion of Competitive Networks in Local Telecommunications MarketsФФ, Notice of Proposed Rulemaking and Notice of Inquiry, WT Docket No. 99Љ217, FCC 99Љ141 (rel. July 7, 1999).б#XNє\  P}XP#бй d йXж л Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe also seek comment on whether any aspect of our universal service rules deters carriers from providing service to unserved and underserved areas. For example, does the definition of supported services deter terrestrial wireless or satellite service providers from providing services in these areas? In our ongoing proceeding to reform the highЉcost universal service support mechanism for nonЉrural carriers, several parties representing rural carriers have filed comments asking that we adjust or eliminate the cap on the highЉcost loop fund to coincide with the anticipated transition of nonЉrural carriers to a new forwardЉlooking support mechanism on January 1, 2000.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЪEџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#блллFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССIn our ongoing proceeding to reform the highЉcost universal service support mechanism for nonЉrural carriers, several parties representing rural carriers have filed comments asking that we adjust or eliminate the cap on the highЉcost loop fund to coincide with the anticipated transition of nonЉrural carriers to a new forwardЉlooking support mechanism on January 1, 2000. УУSee FederalЉState Joint Board on Universal ServiceФФ, CC Docket No 96Љ45, УУAccess Charge ReformФФ, CC Docket No. 96Љ262, Seventh Report & Order and Thirteenth Order on Reconsideration in CC Docket No. 96Љ45, Fourth Report and Order in CC Docket No. 96Љ262, and Further Notice of Proposed Rulemaking, FCC 99Љ119 (rel. May 28, 1999); Rural Telephone Coalition comments at 16Љ21 (filed July 23, 1999); Western Alliance comments at 4Љ7 (filed July 23, 1999).б#XNє\  P}XP#бй d йЪж We observe that the cap on the existing highЉcost fund properly allows for growth based on the rate of growth in the total number of working loops nationwide. We also observe that carriers do invest in facilities in an amount greater than that which is supported through federal universal service support mechanisms.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжCFџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSeeФФ, УУe.g.ФФ, Letter from John Ricker, National Exchange Carrier Association (NECA), to Magalie Roman Salas (dated October 1, 1998) (Р РNECA estimates that the cap will be $864.2 million for 1999 payments. The individual study area expense adjustments for 1999 total $926.9 million based on yearЉend 1997 data, hence payments of expense adjustments will be limited [$62.7 million] as a result of the indexed cap.РР) б#XNє\  P}XP#бй d йCж We seek comment regarding the extent to which the interim cap on the highЉcost fund is a factor contributing to the lack of deployment in unserved areas, including tribal and insular areas. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe comment on whether existing LATAлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжкGџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР 3(25) (defining Р РLocal Access and Transport Area.)б#XNє\  P}XP#бй d йкж boundaries prevent calls from unserved or underserved areas, including tribal lands, to the nearest metropolitan area or community of interest from being included in local service. We seek comment on any other federal rules or Commission regulations which may deter carriers from providing service to unserved or underserved areas. We also observe that issues specific to wireless providers will be addressed in a separate proceeding.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжHџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#блллFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУExtending Wireless Service to Tribal Lands, ФФNotice of Proposed Rulemaking, WT Docket No. 99Љ266, FCC 99Љ205, (adopted Aug. 5, 1999).б#XNє\  P}XP#бй d йжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Ref457804893Ї§ЏўўState Regulations. ФФWe also seek comment on regulations or actions at the state level that may impact deployment and subscribership in unserved and underserved areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжRIџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g.ФФ, Testimony of Aloa Stevens, УУOvercoming Obstacles Proceeding: ўўЏ§Ї_Hlt457726668Ї§ЏўўўўЏ§Ї_Hlt457726668Ї§ЏўўArizona HearingФФ, at 1 (Р РIn some states the regulatory agencies even oppose construction to remote areas, when such line extensions will have the effect of eroding the earnings level, or will eventually raise the cost of service to all other customers.РР)б#XNє\  P}XP#бй d йRж We seek comment on the extent to which statewide rateЉaveraging requirements or limited local calling areas may make the costs of telecommunications service unaffordable to lowЉincome consumers living in unserved or underserved areas.ўўЏ§Ї_Ref457804893Ї§ЏўўўўЏ§Ї_Hlt457804846Ї§Џўў We also seek comment on existing state programs designed to ensure that rates in remote and tribal lands are affordable.л Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTribal / Insular Regulatory Impediments. ФФWe seek comment on any regulations or requirements imposed by tribal or insular authorities that may deter entry in tribal lands or in insular areas. For example, we seek comment on whether local governments own or operate the local exchange carrier in their areas and what impact this may have on competitive entry from other costЉeffective wireline, terrestrial wireless, or satellite service providers. We seek comment on whether government ownership or operation affects the provision of services supported by universal service mechanisms in these areas. We seek comment on any ownership or employment requirements imposed by tribal authorities that may impair the ability of carriers to provide service and/or compete with triballyЉowned carriers. For example, we seek comment on the extent to which tribes require an ownership interest in a carrier as a prerequisite to allowing the carrier to provide service on tribal lands. We seek comment on the impact such requirements may have on the deployment of telecommunications facilities and services on tribal lands.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#блHeading 1 лааб#XNє\  P}XP#бУ УУУззллг Ш гй : йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒви€иўўЏ§Ї_Hlt457804846Ї§ЏўўўўЏ§Ї_Toc454357543Ї§ЏўўўўЏ§Ї_Toc454357543Ї§ЏўўўўЏ§Ї_Toc454163250Ї§ЏўўўўЏ§Ї_Toc454163250Ї§ЏўўўўЏ§Ї_Toc454240665Ї§ЏўўўўЏ§Ї_Toc454240665Ї§ЏўўўўЏ§Ї_Toc454357551Ї§ЏўўўўЏ§Ї_Toc454357551Ї§ЏўўўўЏ§Ї_Ref454537094Ї§ЏўўўўЏ§Ї_Ref454537094Ї§ЏўўўўЏ§Ї_Ref455568015Ї§ЏўўўўЏ§Ї_Ref455568015Ї§ЏўўўўЏ§Ї_Ref455568023Ї§ЏўўўўЏ§Ї_Ref455568023Ї§ЏўўўўЏ§Ї_Toc456170659Ї§Џўў ўўЏ§Ї_Toc456170659Ї§ЏўўўўЏ§Ї_Toc456674462Ї§ЏўўўўЏ§Ї_Toc456674462Ї§ЏўўўўЏ§Ї_Toc458418515Ї§ЏўўўўЏ§Ї_Toc458418515Ї§ЏўўўўЏ§Ї_Toc458419291Ї§ЏўўўўЏ§Ї_Toc458419291Ї§ЏўўўўЏ§Ї_Toc460144394Ї§ЏўўTribal LandsўўЏ§Ї_Toc460144394Ї§Џўўл!Heading 1 !лзз ааФ ФФФб#єAє\  P}єP#бллй йл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССFor our universal service support mechanisms to be effective on tribal lands, we seek to promote active involvement and collaboration between the Commission and tribal authorities. As a general matter, we seek comment on how we can increase Indian participation in the CommissionРРs decisionЉmaking process.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж<Jџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g, FederalЉState Joint Board on Universal Service Announces Rural Task ForceФФ, Public Notice, CC Docket No. 96Љ45, FCC 98JЉ1 (Jt. Bd. rel. Jul. 1, 1998) (appointing Elstun Lausen II, Tanana Chiefs Conference, Inc. in category for Р Рother appropriate representatives, including those of groups with special interest concerns, such as individuals or groups representing the concerns of Native Americans.РР) б#XNє\  P}XP#бй d й<ж At a more specific level, we seek comment throughout this section on issues unique to tribal lands that may affect the goals and incentives of federal universal service support mechanisms and consider additional, targeted assistance the Commission may want to provide to promote deployment and subscribership on tribal lands. As described below, the trust relationship between the federal government and Indians as well as principles of tribal sovereignty suggest that the federal government may have the authority to implement particularized measures to address the factors causing the unusually low subscribership on tribal lands. We emphasize that these proposals are not meant to imply that the states have not, or will not, do their share in promoting the availability of universal service on tribal lands. In fact, many states have made significant efforts in this area. We commend them for doing so and we encourage them to continue. In this proceeding, however, we consider measures the Commission may take to fulfill its obligation to address telecommunications needs on tribal lands.л Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc453402568Ї§ЏўўўўЏ§Ї_Toc453402568Ї§ЏўўўўЏ§Ї_Toc453402576Ї§ЏўўўўЏ§Ї_Toc453402576Ї§ЏўўўўЏ§Ї_Toc453729675Ї§ЏўўўўЏ§Ї_Toc453729675Ї§ЏўўўўЏ§Ї_Toc453735453Ї§ЏўўўўЏ§Ї_Toc453735453Ї§ЏўўўўЏ§Ї_Toc454357544Ї§ЏўўўўЏ§Ї_Toc454357544Ї§ЏўўўўЏ§Ї_Toc456170660Ї§ЏўўўўЏ§Ї_Toc456170660Ї§ЏўўўўЏ§Ї_Ref455979358Ї§ЏўўўўЏ§Ї_Ref455979358Ї§ЏўўўўЏ§Ї_Ref455979363Ї§ЏўўўўЏ§Ї_Ref455979363Ї§ЏўўўўЏ§Ї_Ref455979380Ї§ЏўўўўЏ§Ї_Ref455979380Ї§ЏўўўўЏ§Ї_Toc456170653Ї§ЏўўўўЏ§Ї_Toc456170653Ї§ЏўўўўЏ§Ї_Toc454003599Ї§ЏўўўўЏ§Ї_Toc454003599Ї§ЏўўўўЏ§Ї_Toc454026895Ї§ЏўўўўЏ§Ї_Toc454026895Ї§ЏўўўўЏ§Ї_Toc454087418Ї§ЏўўўўЏ§Ї_Toc454087418Ї§ЏўўўўЏ§Ї_Toc454240659Ї§ЏўўўўЏ§Ї_Toc454240659Ї§ЏўўўўЏ§Ї_Toc454357531Ї§ЏўўўўЏ§Ї_Toc454357531Ї§ЏўўўўЏ§Ї_Toc456170652Ї§ЏўўўўЏ§Ї_Toc456170652Ї§ЏўўўўЏ§Ї_Toc456674463Ї§ЏўўўўЏ§Ї_Toc456674463Ї§ЏўўўўЏ§Ї_Ref456686642Ї§ЏўўўўЏ§Ї_Ref456686642Ї§ЏўўўўЏ§Ї_Ref457800686Ї§ЏўўўўЏ§Ї_Ref457800686Ї§ЏўўўўЏ§Ї_Toc458418516Ї§ЏўўўўЏ§Ї_Toc458418516Ї§ЏўўўўЏ§Ї_Toc458419292Ї§ЏўўўўЏ§Ї_Toc458419292Ї§ЏўўўўЏ§Ї_Hlt458581018Ї§ЏўўўўЏ§Ї_Hlt458581018Ї§ЏўўўўЏ§Ї_Toc460144395Ї§ЏўўJurisdictionл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Heading 3 лб#XNє\  P}XP#бУ УУУззлла ААА аг Ш гй 2 йФФа АА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc460144395Ї§ЏўўўўЏ§Ї_Toc456674464Ї§ЏўўўўЏ§Ї_Toc456674464Ї§ЏўўўўЏ§Ї_Toc458418517Ї§ЏўўBackgroundўўЏ§Ї_Toc458418517Ї§Џўўл! Heading 3 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAs noted above, one of our goals in this proceeding is to identify and address the unique issues that may limit telecommunications deployment and subscribership in unserved or underserved regions of our Nation, including insular areas and tribal lands and to consider what changes in our universal service rules would best address these issues. Our jurisdiction to make these changes springs from our obligation under section 254 of the Act to develop policies and rules for the preservation and advancement of universal service. With respect to tribal lands, our exercise of this section 254 authority must be informed by our exploration of the jurisdiction of states and Indian tribes to regulate and provide telecommunications. Our jurisdiction to alter our universal service rules in ways targeted to benefit unserved tribal lands must also be informed by the principles of Indian law that stem from the unique relationship of the federal government with Indian tribes.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжнKџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ note 24, above, for definitions of Indians and Indian tribes.б#XNє\  P}XP#бй d йнжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThis relationship is set forth in the Constitution of the United States, treaties, statutes, Executive Orders and court decisions. Historically, the United States has recognized the special trust relationship between the federal government and tribal authorities, the unique sovereign status of Indian tribes, and the federal obligation to guarantee the right of Indian tribes to selfЉgovernment. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTrust RelationshipФФ. Federal courts have long recognized a Р Рdistinctive obligation of trust incumbent upon the Government in its dealings withўўЏ§Ї_Ref454017946Ї§Џўў these dependent and sometimes exploited people.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжбLџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeminole Nation v. United StatesФФ, 316 U.S. 286, 296 (1942) (citing УУCherokee Nation v. State of GeorgiaФФ, 30 U.S. 1 (1831); УУUnited States v. KagamaФФ, 118 U.S. 375 (1886); УУChoctaw Nation v. United StatesФФ, 119 U.S. 1 (1886); УУUnited States v. PelicanФФ, 232 U.S. 442 (1914); УУUnited States v. Creek NationФФ, 295 U.S. 103 (1935); УУTulee v. State of WashingtonФФ, 315 U.S. 681 (1942). УУSee also Ramah Navajo Chapter v. LujanФФ, 112 F.3d 1455, 1462 (10УУthФФ Cir. 1997) (federal government has a unique trust relationship with Indians.) б#XNє\  P}XP#бй d йбж The formation of a trust relationship evolved out of a recognition of the unequal bargaining power of Indian tribes in the formation of the treaties governing their rights and obligations. Over 150 years ago, Chief Justice Marshall acknowledged the special status of Indian tribes in the seminal case of УУCherokee Nation v. State of GeorgiaФФ, describing them as Р Рdomestic dependent nations.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжиMџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУCherokee Nation v. State of GeorgiaФФ, 30 U.S. 1 at 17 (1831).б#XNє\  P}XP#бй d йиж Since that time, the courts have routinely observed the federal governmentРРs unique relationship with Indian tribes,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжNџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССУУSee e.g., Nance v. EPAФФ, 645 F.2d 701, 710 (9УУthФФ Cir.) (cert. denied sub nom, УУCrow Tribe of Indians Montana v. EPA, ФФ454 U.S. 1081 (1981); УУInterЉTribal Council of Arizona, Inc. v. Babbit, ФФ51 F.3d 199, 203 (9УУthФФ Cir. 1995).б#XNє\  P}XP#бй d йж and as recently as June 14, 1999, the Supreme Court again recognized the Р Рspecial federal interest in protecting the welfare of Native Americans.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжOџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУGreater New Orleans Broadcasting Association v. United StatesФФ, __ U.S. __, 1999 WL 380810, 380812 (June 14, 1999).б#XNє\  P}XP#бй d йж The Supreme Court has stated that, through this special trust relationship, the federal government Р Рhas charged itself with moral obligations of the highest responsibility and trust. Its conduct, as disclosed in the acts of those who represent it in dealings with the Indians, should therefore be judged by the most exacting fiduciary standards.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЋ Pџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeminole NationФФ, 316 U.S. at 297. Since 1970, Presidential policy has reaffirmed the unique sovereign status of Indian tribes, the tribalЉfederal trust relationship, and the federal obligation to promote tribal selfЉsufficiency. УУSee, e.g., ФФPresident Richard Nixon, УУStatement to the Congress of the United States, ФФThe White House, July 9, 1970; President Ronald Reagan, УУStatement by the President on Indian Policy, ФФThe White House, Jan. 24, 1983; President George Bush, УУIndian Policy Statement, ФФThe White House, June 14,1991; President William Clinton, УУGovernmentЉtoЉGovernment Relations with Native American Tribal Governments, ФФMemorandum of Apr. 29, 1994, Federal Register vol. 59, No. 85, May 4, 1994, pp. 22951Љ22952 (УУPresident ClintonРРs April 1994 MemorandumФФ); President William Clinton, УУExecutive Order on Indian Tribal Governments, ФФThe White House, May 14, 1998 (УУPresident ClintonРРs May 1998 Executive OrderФФ.) УУPresident ClintonРРs April 1994 MemorandumФФ requires executive agencies to deal with Indian tribes on a government to government basis, carefully consider the implications of proposed actions on tribes and provide tribes with the opportunity to participate in agency activities. Several federal agencies have issued policy statements that recognize the status of tribal governments and support tribal selfЉdetermination. УУSee, e.g., ФФU.S. Department of the Interior, Memorandum from Ada E. Deer , Assistant Secretary for Indian Affairs to the Assistant Secretary for Fish and Wildlife and ParksУУ, Indian Fish and Wildlife PolicyФФ, June 23, 1994; U.S. Department of Energy, УУAmerican Indian Policy, ФФJuly/August 1994; U.S. Department of Agriculture, Departmental Regulation No. 1020Љ6, УУPolicies on American Indians and Alaska Natives,ФФ Oct. 22, 1992; U.S. Department of Commerce, УУAmerican Indians and Alaska Native Policy of the U.S. Department of Commerce, ФФMar. 30, 1995; U.S. Department of Justice, Office of the Attorney General, УУDepartment of Justice Policy on Indian Sovereignty and GovernmentЉtoЉGovernment Relations with Indian Tribes,ФФ June 1, 1995; U.S. Environmental Protection Agency, Memorandum from Carol M. Browner, Administrator, to All EmployeesУУ, EPA Indian Policy, ФФMar. 14, 1994. УУ ФФб#XNє\  P}XP#бй d йЋ ж л Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTribal SovereigntyФФ. The Constitution of the United States recognizes the sovereign status of Indian tribes by classing Indian treaties as among the Р РSupreme Law of the landРР and establishes Indian affairs as a unique area of federal concern. Indian tribes retain important sovereign powers over Р Рtheir members and their territoryРР subject to the plenary power vested in Congress by the Constitution of the United States. Under the tribal sovereignty doctrine, "Indian tribes are unique aggregations possessing attributes of sovereignty over both their members and their territory."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжQџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУWhite Mountain Apache Tribe v. BrackerФФ, 448 U.S. 136, 140 (1980), quoting УУUnited States v. MazurieФФ, 419 U.S. 544, 557 (1975).б#XNє\  P}XP#бй d йж Under this doctrine, tribes have retained "a semiЉindependent position . . . not as States, not as nations, . . . but as a separate people with the power of regulating their internal and social relations . . .."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж"Rџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУMcClanahan v. Arizona State Tax Comm'nФФ, 441 U.S. 164, 173 (1973), quoting УУUnited States v. KagamaФФ, 118 U.S. 375, 381Љ382 (1886).б#XNє\  P}XP#бй d й"ж The foundation of Indian sovereignty over the reservation and tribal members was first recognized by Chief Justice John Marshall, who described the Indian tribes as "distinct political communities, having territorial boundaries within which their authority is exclusive, and having a right to all lands within those boundaries, which is not only acknowledged but guaranteed by the United States."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЩSџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУWorcester v. Georgia,ФФ 6 Pet. 515, 557 (1832).б#XNє\  P}XP#бй d йЩж The tradition of tribal sovereignty has persisted since Chief Justice Marshall's early decisions construing the status of Indian tribes. As the Supreme Court has acknowledged "traditional notions of Indian selfЉgovernment are so deeply ingrained in our jurisprudence that they have provided an important 'backdrop' against which vague or ambiguous federal enactment must always be measured."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжTџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллб#єxЯОІ P}7ћєP#бг bb гССб#єAє\  P}єP#бг aa гУУг dd гWhite Mountain Apache Tribe v. Bracker, ФФ448 U.S. at 143 (internal cites omitted). УУSee also, McClanahan V. Arizona State Tax Comm'n, ФФ411 U.S. 172 (1973) ("It must always be remembered that the various Indian tribes were once independent and sovereign nations, and that their claim to sovereignty long predates that of our own Government.") г aa гTribal sovereignty, however, remains subordinate to Congress' plenary power. УУSee Washington v. Confederated Tribes of Coleville Indian ReservationФФ, 447 U.S. 134, 154 (1980) (recognizing that "tribal sovereignty is dependent on, and subordinate to, only the Federal Government").б#єxЯОІ P}7ћєP#бг bb гб#XЯОІ P}7ћXP#бй d йб#XNє\  P}XP#бг aa гг dd гж Congress recently declared that the trust relationship Р Рincludes the protection of the sovereignty of each tribal government.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЊUџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС25 U.S.C. РР 3601.б#XNє\  P}XP#бй d йЊжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTribal SelfЉdeterminationФФ. Through the enactment of various statutes, Congress has demonstrated an Р Рoverriding goal of encouraging tribal selfЉsufficiency and economic development.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжJVџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУNew Mexico v. Mescalero Apache TribeФФ, 462 U.S. 324, 334Љ35 (1983) (internal quotations omitted) (referencing the Indian Financing Act of 1974, 25 U.S.C. РР 1451, УУet seqФФ.; the Indian SelfЉDetermination and Education Assistance Act of 1975, 25 U.S.C. РР 450, УУet seqФФ.; the Indian Reorganization Act of 1934, 25 U.S.C. РР 461, УУet seqФФ.; the Indian Civil Rights Act of 1968, 25 U.S.C. РР 1301, УУet seqФФ.).б#XNє\  P}XP#бй d йJж For example, the Indian Financing Act of 1974 provides in pertinent part that: Р Р[i]t is hereby declared to be the policy of Congress . . . to help develop and utilize Indian resources, both physical and human, to a point where the Indians will fully exercise responsibility for the utilization and management of their own resources and where they will enjoy a standard of living from their own productive efforts comparable to that enjoyed by nonЉIndians in neighboring communities.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж|Wџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС25 U.S.C. РР 1451. УУSee Mescalero, ФФ42 U.S. at 334 (citing 25 U.S.C. РР1451). УУSee also The Indian SelfЉDetermination and Education Assistance Act of 1975,ФФ 25 U.S.C. РР 450; УУThe Indian Reorganization Act of 1934,ФФ 25 U.S.C. РР 461; УУThe Indian Civil Rights Act of 1968, ФФ25 U.S.C. РР 1301; УУThe Indian Gaming Regulatory Act of 1988, ФФ25 U.S.C. РР 2701 УУet seq.ФФ; and УУThe Indian Tribal Justice Act of 1993, ФФ25 U.S.C. РР 3601 УУet seq.б#XNє\  P}XP#бй d йФФ|ж л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Ref454017946Ї§ЏўўўўЏ§Ї_Toc456170644Ї§ЏўўўўЏ§Ї_Toc456170644Ї§ЏўўўўЏ§Ї_Ref456627046Ї§ЏўўўўЏ§Ї_Ref456627046Ї§ЏўўўўЏ§Ї_Toc456674465Ї§ЏўўўўЏ§Ї_Toc456674465Ї§ЏўўўўЏ§Ї_Hlt456675742Ї§ЏўўўўЏ§Ї_Hlt456675742Ї§ЏўўўўЏ§Ї_Ref456686729Ї§ЏўўўўЏ§Ї_Ref456686729Ї§ЏўўўўЏ§Ї_Ref458334834Ї§ЏўўўўЏ§Ї_Ref458334834Ї§ЏўўўўЏ§Ї_Toc458418518Ї§ЏўўIssues for Commentл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe recognize that principles of Indian law, including the trust relationship between the federal government and Indian tribes, tribal sovereignty, and tribal selfЉdetermination, must apply with equal force in the area of telecommunications.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжпXџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at para. 92, n.252.б#XNє\  P}XP#бй d йпж With respect to telecommunications services provided by tribal carriers on or off the reservation or by nonЉtribal carriers within tribal lands (all of which are referred to jointly as Р Рtribal telecommunicationsРР) the parameters of federal, state and tribal authority, however, are not always clear. The Supreme Court, itself, has acknowledged that Р Рgeneralizations on this subject have become treacherous.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжжYџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУMescalero Apache Tribe v. Jones,ФФ 411 U.S. 145, 148 (1973).б#XNє\  P}XP#бй d йжж Nonetheless, some of the proposals presented in this Further Notice necessitate an effort to evaluate these jurisdictional relationships. In this Further Notice, we seek comment to determine how best to give effect to principles of Indian law in the context of rule changes intended to benefit unserved and underserved tribal lands.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССState Jurisdiction. ФФThree of the proposals detailed later in this Further Notice deal with provisions of sections 254 and 214 of the Act, and of our existing rules that are triggered when the state lacks jurisdiction over a carrier providing telephone exchange or access service in a particular area. First, as described in section IV, the determination of whether a state has jurisdiction over a common carrier providing telephone exchange service and exchange access is key in determining whether the Commission is required to designate telecommunications carriers as eligible to receive federal universal service support in highЉcost areas. Second, as detailed in section V, in unserved areas where the state lacks jurisdiction the Commission, pursuant to section 214(e)(3) shall determine which common carrier or carriers are best able to provide service. Third, in section III.D.1, we propose that revisions to our Lifeline rules to address the situation faced by carriers not subject to state jurisdiction.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Toc458418518Ї§ЏўўўўЏ§Ї_Hlt454600471Ї§ЏўўThe issue of the extent to which tribal authorities or state governments have authority to regulate activities occurring on tribal lands, whether by tribal members or not, has a long and complex legal history, involving considerations of whether state regulation is preempted by federal regulation, whether state regulation is consistent with tribal sovereignty and selfЉdetermination, and whether tribes have consented to state jurisdiction, either in treaties or pursuant to the Indian Civil Rights Act of 1968.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжПZџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС18 U.S.C. РРРР 1321, 1322, 1326 (1976). Among other things, the Indian Civil Rights Act provides for the Constitutional rights of Indians (including the provisions contained in the Bill of Rights of the United States Constitution) and establishes jurisdiction over criminal and civil actions.б#XNє\  P}XP#бй d йПж In addition, Indian law jurisprudence finds state law generally inapplicable when states attempt to regulate the conduct of Indians directly within reservation boundaries.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжч[џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ УУWhite Mountain Apache Tribe v. Bracker,ФФ 448 U.S. 136, 144 (1980).б#XNє\  P}XP#бй d йчж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe recognize that some state commissions have asserted jurisdiction over carriers seeking to provide service on tribal lands and regulate certain aspects of the provision of telecommunications service on tribal lands. We seek comment, in particular from state commissions as well as any other interested parties, concerning the extent of state and tribal regulation of telecommunications provided on tribal lands and by triballyЉowned or operated carriers. In particular, we seek comment on the appropriate jurisdictional authority in the following situations: (1) triballyЉowned or operated carriers providing service within the reservation (a) to tribal members, (b) to nonЉtribal members, and (c) to nonЉtribal members living on nonЉnative fee lands (within the reservation); (2) nonЉtribally owned or operated carriers offering service both inside and outside of the reservation; and (3) triballyЉowned or operated carriers offering service outside of the reservation. We refer parties commenting on these issues to the various ways in which tribal lands could be defined, as discussed below, and seek comment on how these definitions inform the jurisdictional analysis requested in this section.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЎ\џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ section III.B.б#XNє\  P}XP#бй d йЎжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Hlt454600471Ї§ЏўўўўЏ§Ї_Ref460050036Ї§ЏўўIn addition, we seek comment on the jurisdictional treatment of the following geographic entities, as classified by the Bureau of the Census:лFootnote Refлб#єAє\  P}єP#бУУлл ўўЏ§Ї_Ref460050036Ї§ЏўўўўЏ§Ї_Ref458334694Ї§Џўўл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжu]џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССThe Geographic Areas Reference Manual describes in great detail the basic geographic entities the Census Bureau uses in its various data tabulations and documents the purposes, definitions, standards, criteria, and procedures used to select, define, delineate, and revise these geographic entities. УУSeeФФ ўўВ§Њhttp://www.census.gov/geo/www/garm.htmlЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.census.gov/geo/www/garm.htmlл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў. To view or download the Census BureauРРs listing of the American Indian and Alaska Native Areas by State in 1990, go to ўўВ§Њhttp://www.census.gov/ftp/pub/geo/www/GARM/Ch5GARM.pdfЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.census.gov/ftp/pub/geo/www/GARM/Ch5GARM.pdfл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў. Land Area and Poverty Data for American Indian and Alaska Native Areas can be viewed at: УУб Ћ бўўВ§Њhttp://www.census.gov/geo/www/ezstate/aianapov.htmlЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.census.gov/geo/www/ezstate/aianapov.htmlл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб Ћ бўўВ§Њ€Њ§Вўўб б. For more recent information, УУsee ФФVeronica E. Velarde Tiller, Tiller Research, Inc., УУAmerican Indian Reservations and Trust Areas ФФ(prepared under an award from the Economic Development Administration, U.S. Department of Commerce, 1996).б#XNє\  P}XP#бй d йuж (1) American Indian Reservations, which are areas with boundaries established by treaty, statute and /or executive or court order; (2) Trust Lands, which are real property held in trust by the federal government that is associated with a specific American Indian reservation or tribe and which may be located within or outside the reservation; (3) Tribal Jurisdiction Statistical Areas, which are delineated by those FederallyЉrecognized tribes in Oklahoma that no longer have a reservation; (3) Tribal Designated Statistical Areas, which encompasses federally and stateЉrecognized tribes without reservation or trust lands; (4) Alaska Native Regional Corporations, which are corporate entities established under the Alaska Native Claims Settlement Act of 1972 (ANCSA) to conduct the commercial and nonprofit business of Alaska Natives;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЩ^џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССPublic Law 92Љ203, as amended by Public Law 94Љ204.б#XNє\  P}XP#бй d йЩж and (5) Alaska Village Statistical Areas, which are tribes, bands, clans, groups, villages, communities, or associations in Alaska that are recognized pursuant to the ANCSA. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether there are any other kinds of tribal relationships that would inform our jurisdictional analysis. We seek comment on whether the state commission has jurisdiction over telecommunications in the situations described above, the legal authority for such jurisdiction (УУe.g.ФФ the state constitution, state statute, Indian treaty, etc.); and the extent to which the particular state commission exercises that jurisdiction. We also seek comment on the existence of any concurrent jurisdiction.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn addition, we observe that wireline telephone calls between Indian tribal lands and the state in which tribal land is located are currently treated as intrastate calls, subject to state jurisdiction. We seek comment on whether this treatment is consistent with principles of tribal sovereignty and the Indian law jurisprudence regarding the limits of state authority, referenced above. We also seek comment on whether the treatment of these calls as intrastate is consistent with the division of jurisdiction between the Commission and the states under section 2 of the Act. We seek comment as well on the need, impact, and CommissionРРs authority to reclassify these calls as interstate for the purpose of giving effect to principles of tribal sovereignty.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe observe further that state jurisdiction may be preempted by the operation of federal law Р Рif it interferes with or is incompatible with federal and tribal interests reflected in federal law, unless the state interests at stake are sufficient to justify the assertion of state authority.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж2_џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУNew Mexico v. Mescalero Apache TribeФФ, 462 U.S. 324, 334 (1983), УУcitingФФ УУWhite Mountain Apache Tribe v. Bracker,ФФ 448 U.S. 136, 144 (1980). б#XNє\  P}XP#бй d й2ж An express Congressional statement of preemption is not required.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжŸ`џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУId.б#XNє\  P}XP#бй d йФФŸж Instead, a preemption analysis Р Рrequires a particularized examination of the relevant state, federal and tribal interests.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж7aџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУCotton Petroleum Corp. v. New Mexico,ФФ 490 U.S. 163, 176 (1989), УУciting Ramah Navajo School Bd., Inc. v. Bureau of RevenueФФ, 458 U.S. 832, 838 (1982). б#XNє\  P}XP#бй d й7ж We seek comment on state interests in regulating telecommunications on tribal lands, including the ability to ensure reasonable rates, quality service, and the continued viability of local exchange carriers (LECs). We also seek comment from each tribal government, and any other interested parties, on the extent to which the stateРРs exercise of jurisdiction over telecommunications on tribal lands and over tribal carriers that serve areas both inside and outside Indian sovereign territory is warranted.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTribal Regulation. ФФWe seek comment from each tribal government, and any other interested parties, on the extent of tribal authority over regulation of telecommunications on tribal lands. As a threshold matter, we note that the Commission has previously spoken to some aspects of this issue in the УУA.B. Fillins OrderФФ, in which the Commission considered the extent of tribal regulatory authority over the provision of cellular service within a tribal reservation.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжиbџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССAB Fillins: Petition for a Declaratory Ruling Preempting the Authority of the Tohono OРРodham Legislative Council to Regulate the Entry of Commercial Mobile Radio Service to the Sells Reservation Within the Tucson MSA, Market No. 77, УУMemorandum Opinion and OrderФФ, 12 FCC Rcd 11755 (1997) (УУAB Fillins OrderФФ). б#XNє\  P}XP#бй d йиж In that order, the Commission held that under wellЉsettled case law, the Communications Act applies with equal force to tribal reservations as to other areas, and that the Commission has sole authority under Title III of the Act with respect to management and licensing of radio spectrum in tribal areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжEcџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУId.ФФ at paras. 30Љ32 (УУciting United States v. FarrisФФ, 624 F.2d 890 (9УУthФФ Cir. 1980), УУcert. denied sub nom. Baker v. United StatesФФ, 449 U.S. 1111 (1981)).б#XNє\  P}XP#бй d йEж The Commission also concluded, however, that the Communications Act does not preempt tribal authority over access by telecommunications carriers to tribal lands, because the provisions of the Act that preempt state and local impediments to entry do not apply to tribal authorities.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжГdџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУAB FillinsФФ at paras. 16Љ18 (finding that the tribal legislative councilРРs decision to prevent the location of cell sites on reservation lands is within its authority over the occupation and use of tribal lands and is not preempted by Section 253 or Section 332(c) of the Act).б#XNє\  P}XP#бй d йГж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Ref458334694Ї§ЏўўўўЏ§Ї_Toc453922418Ї§ЏўўўўЏ§Ї_Toc453922418Ї§ЏўўўўЏ§Ї_Toc453922567Ї§ЏўўўўЏ§Ї_Toc453922567Ї§ЏўўўўЏ§Ї_Toc454003584Ї§ЏўўўўЏ§Ї_Toc454003584Ї§ЏўўўўЏ§Ї_Toc454026878Ї§ЏўўўўЏ§Ї_Toc454026878Ї§ЏўўўўЏ§Ї_Toc454087400Ї§ЏўўўўЏ§Ї_Toc454087400Ї§ЏўўўўЏ§Ї_Toc454240641Ї§ЏўўўўЏ§Ї_Toc454240641Ї§ЏўўўўЏ§Ї_Toc454357524Ї§ЏўўIn light of this statutory framework, we seek comment on the current extent to which tribal authorities have engaged in telecommunications regulation and on any future plans of tribal authorities to regulate telecommunications in tribal areas. We seek comment on the extent to which tribal authorities consider regulation of tribal telecommunications important to the right to selfЉgovernment and selfЉdetermination. We also seek comment on whether tribal authorities should be considered as comparable to state authorities for purposes of regulating telecommunications services, and the degree to which the federalЉtribal relationship on communications matters is similar or dissimilar to the federalЉstate relationship. Finally, while we have determined in the УУA.B. Fillins OrderФФ that tribal authorities are not subject to preemption under provisions of the Act applicable to state and local governments, we seek comment on what authority, if any, the Commission has to preempt tribal regulations that may be inconsistent with our federal regulatory scheme. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTribal SelfЉdetermination and Universal Service Goals. ФФWe seek comment to determine how principles of Indian law and federal support for tribal selfЉdetermination affect the CommissionРРs statutory mandate to ensure that consumers in all regions of the nation have access to the services supported by federal universal service support mechanisms. Pursuant to the Act, the Commission is bound by its statutory mandate to promote the availability of the services supported by federal universal service support mechanisms in all regions of the Nation.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЎeџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС47 U.S.C. РР 254(b)(3).б#XNє\  P}XP#бй d йЎж We seek comment on whether this statutory obligation is affected or constrained by any contrary interests, for cultural or other reasons, of certain tribal authorities. We seek comment, in particular from tribal authorities, to ascertain whether tribal authorities share the goals established by the 1996 Act, which the Commission is bound to implement. We seek comment on the extent to which tribal authorities seek to promote the availability of telecommunications services and competition among telecommunications providers.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe also seek comment on whether the services supported by federal universal service support mechanisms are consistent with the interests of tribal authorities in promoting service in tribal lands.лFootnote Refлб#єAє\  P}єP#бУУллв X0УУФФX0УУФФ вжГfџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ n. 34, УУsupra.ФФб#XNє\  P}XP#бй d йГж л#Footnote Ref#лб#XNє\  P}XP#бФФлл We recognize that some tribal authorities may prefer a different mix of services to be supported. For example, some tribes may prefer support for terrestrial wireless or satelliteб Ћ б б бservices, rather than wireline services. Other tribes may want to prioritize the ability for each member to receive basic telecommunications service, rather than the entire package of services included in the definition of universal service. We seek comment on whether the Commission has the authority to and whether it should develop a procedure by which the Commission, the Joint Board and the sovereign Indian tribes could identify a single alternative definition of the services supported by federal universal service support mechanisms in tribal lands. We seek comment on additional administrative burdens that would be associated with implementing this procedure. л Para# лŒб#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc454357524Ї§ЏўўўўЏ§Ї_Toc456674466Ї§ЏўўўўЏ§Ї_Toc456674466Ї§ЏўўўўЏ§Ї_Ref458407091Ї§ЏўўўўЏ§Ї_Ref458407091Ї§ЏўўўўЏ§Ї_Toc458418519Ї§ЏўўўўЏ§Ї_Toc458418519Ї§ЏўўўўЏ§Ї_Toc458419293Ї§ЏўўўўЏ§Ї_Toc458419293Ї§ЏўўўўЏ§Ї_Toc460144396Ї§ЏўўDefining Р РTribal LandsРРл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Toc460144396Ї§ЏўўўўЏ§Ї_Ref455558624Ї§ЏўўThe definition we adopt of Р Рtribal landsРР will be used to identify those areas in which, for reasons based on principles of Indian sovereignty, the Commission seeks comment to determine whether possible modifications to our federal universal service policies and rules may be warranted. In defining tribal lands, we seek to ensure that we limit the reach of these proposals to those areas in which principles of tribal sovereignty and tribal selfЉdetermination apply. We also seek to balance the reasonable exercise of federal jurisdiction with appropriate deference to state sovereignty and jurisdiction. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on defining tribal lands as all land within the limits of any Indian reservation under the jurisdiction of the United States Government, notwithstanding the issuance of any patent, and, including rightsЉofЉway running through the reservation. Alternatively, we seek comment on defining tribal lands to have the same meaning as the term Р РIndian country,РР as that term is defined by the Bureau of Indian Affairs. Р РIndian countryРР means (a) all land within the limits of any Indian reservation under the jurisdiction of the United States Government, notwithstanding the issuance of any patent, and, including rightsЉofЉway running through the reservation, (b) all dependent Indian communities within the borders of the United States whether within the original or subsequently acquired territory thereof, and whether within or without the limits of a state, and (c) all Indian allotments, the Indian titles to which have not been extinguished, including rightsЉofЉway running through the same.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжзgџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС18 U.S.C. РР 1151. The term Р Рdependent Indian communitiesРР refers to a limited category of Indian lands that are neither reservations nor allotments, that have been set aside by the federal government for the use of Indians as Indian land, and that are under federal superintendence. УУAlaska v. Native Village of Venetie Tribal GovernmentФФ, 118 S.Ct. 948, 953 (1998). Although Congress initially defined the term Р РIndian countryРР for purposes of federal criminal jurisdiction, the Supreme Court has recognized that the term also applies to questions of civil jurisdiction. УУAlaska v. Native Village of Venetie Tribal GovernmentФФ, 118 S.Ct. at 952, n.1; УУCalifornia v. Cabazon Band of Mission IndiansФФ, 480 U.S. 202, 208, n.5 (1987); УУDeCoteau v. District County CourtФФ, 420 U.S. 425, 427, n.2 (1975).б#XNє\  P}XP#бй d йзж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn addition, we seek comment on whether the geographic entities, as classified by the Bureau of the Census, should be included in the definition of tribal lands:лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж hџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ n. 93 for references to information identifying the specific tribes included within these classifications.б#XNє\  P}XP#бй d й ж (1) American Indian Reservations, which are areas with boundaries established by treaty, statute and / or executive or court order; (2) Trust Lands, which are real property held in trust by the federal government that is associated with a specific American Indian reservation or tribe and which may be located within or outside the reservation; (3) Tribal Jurisdiction Statistical Areas, which are delineated by those FederallyЉrecognized tribes in Oklahoma that no longer have a reservation; (3) Tribal Designated Statistical Areas, which encompasses federally and stateЉrecognized tribes without reservation or trust lands; (4) Alaska Native Regional Corporations, which are corporate entities established under the ANCSAлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЉiџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee ФФpara. 21.б#XNє\  P}XP#бй d йЉж to conduct the commercial and nonprofit business of Alaksa Natives;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЩjџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССPublic Law 92Љ203, as amended by Public Law 94Љ204.б#XNє\  P}XP#бй d йЩж and (5) Alaska Village Statistical Areas, which are tribes, bands, clans, groups, villages, communities, or associations in Alaska that are recognized pursuant to the ANCSA. л Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe observe that, with the exception of the first category, American Indian Reservations, the above listed classifications used by the Bureau of the Census would not be encompassed in a definition of tribal lands that is limited to Р Рall land within the limits of any Indian reservation under the jurisdiction of the United States Government,РР as set forth above. We recognize that tribes encompassed by these classifications may face obstacles in obtaining telecommunications services that are similar to those faced by tribes in living in American Indian Reservations. Commenters supporting the inclusion of any of these categories should explain the source of the CommissionРРs authority to implement the additional measures proposed in this item with respect to these areas, including noting any jurisdictional arguments provided in response to questions raised in section III.A.2. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 2 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Ref455558624Ї§ЏўўўўЏ§Ї_Toc456674467Ї§ЏўўўўЏ§Ї_Toc456674467Ї§ЏўўўўЏ§Ї_Toc458418520Ї§ЏўўўўЏ§Ї_Toc458418520Ї§ЏўўўўЏ§Ї_Toc458419294Ї§ЏўўўўЏ§Ї_Toc458419294Ї§ЏўўўўЏ§Ї_Toc460144397Ї§ЏўўHighЉCost Support Mechanismsл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Heading 3 лб#XNє\  P}XP#бУ УУУззлла ААА аг Ш гй 2 йа АА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc460144397Ї§ЏўўўўЏ§Ї_Toc456674468Ї§ЏўўўўЏ§Ї_Toc456674468Ї§ЏўўўўЏ§Ї_Toc458418521Ї§ЏўўBackgroundл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn 1984, the Commission established highЉcost support mechanisms to promote the nationwide availability of telephone service at reasonable rates.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжt kџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSee generally Amendment of Part 67 of the Commission's Rules and Establishment of a Joint BoardФФ, CC Docket No. 80Љ286, 96 FCC 2d 781 (1984). Pursuant to the CommissionРРs directive, the local exchange carriers formed NECA to administer the highЉcost support mechanisms. The support mechanisms include the highЉcost loop fund, Dial Equipment Minutes (DEM) weighting assistance support and Long Term Support. The CommissionРРs DEM weighting assistance mechanism provides support for local switching costs to telephone companies with 50,000 or fewer access lines. Initially, support was provided by allowing carriers to allocate a greater portion of their switching costs to the interstate jurisdiction. These costs were recovered through interstate access charges. In the УУFirst Report and Order,ФФ the Commission modified the program to provide that support attributable to DEM weighting would be recovered through the new universal service support mechanism. УУSee First Report and Order,ФФ 12 FCC Rcd at 8940Љ4; 47 C.F.R. РР 54.301. Long Term Support (LTS) refers to the support given to some carriers to supplement the part of the interstate portion of their local loop costs recovered through the Carrier Common Line (CCL) charge. LTS allows LECs with higherЉthanЉaverage loop costs to charge only an average CCL rate. In the УУFirst Report and Order,ФФ the Commission determined that until carriers begin to receive support based on the new highЉcost mechanism, LTS would be computed for each incumbent LEC using a baseline level of LTS derived from 1997 historical cost data but adjusted each year to reflect the annual percentage change in the nationwide average cost per loop and inflation. УУSeeФФ 47 C.F.R. РР 54.303.б#XNє\  P}XP#бй d йt ж The highЉcost loop fund provides support by allowing incumbent LECs with higher than average local loop costs to allocate an additional portion of those costs to the interstate jurisdiction to be recovered from interstate revenues.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЖlџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ 47 C.F.R. РР 36.611.б#XNє\  P}XP#бй d йЖж This enables the state jurisdictions to establish lower local exchange rates in study areas receiving such assistance.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжžmџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССУУIdФФ.б#XNє\  P}XP#бй d йžж In general, a study area corresponds to an incumbent LECРРs entire service territory within a state.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжжnџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССг bb г47 C.F.R. РР 36 app. (defining "study area"); 47 U.S.C. РР 251(h) (defining incumbent local exchange carrier). УУSeeФФ MTS and WATS Market Structure, Amendment of Part 67 of the Commission's Rules and Establishment of a Joint Board, УУRecommended Decision and OrderФФ, 49 Fed. Reg. 48325 (Dec. 12, 1984); УУDecision and OrderФФ, 50 Fed. Reg. 939 (Jan. 8, 1985); УУsee alsoФФ Amendment of Part 36 of the Commission's Rules and Establishment of a Joint Board, УУNotice of Proposed RulemakingФФ, 5 FCC Rcd 5974 (Oct. 10, 1990). г dd гб#XNє\  P}XP#бй d йжж Typically for incumbent LECs operating in more than one state, each state represents a study area. л Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССPursuant to existing support mechanisms, highЉcost loop support for most incumbent LECs is calculated using data provided by incumbent LECs pursuant to the Commission's cost accounting and jurisdictional separations rules.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжКoџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSee ФФ47 C.F.R. Parts 36 and 69. б#XNє\  P}XP#бй d йКж NonЉrural carriers are scheduled to make the transition on January 1, 2000 to a new support mechanism based on forwardЉlooking costs, while rural carriers will continue to receive support based on the existing mechanisms until at least January 1, 2001. Under the existing mechanisms, the amount of an incumbent LECРРs highЉcost loop support is based on the relationship of its historical loop cost for a particular study area to the national average loop cost. In order to determine this relationship, approximately half of all incumbent LECs submit their historical loop cost data to NECA each year pursuant to sections 36.611 and 36.612 of the Commission's rules.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжpџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССIncumbent LECs must submit account data to the Administrator for each of its study areas. УУSeeФФ 47 C.F.R. РР 36.611, 36.612.б#XNє\  P}XP#бй d йж Because the cost data is not submitted by carriers until seven months after the end of a calendar year, and because NECA requires time to analyze the data and make the necessary nationwide calculations of support, carriers generally do not receive highЉcost support based on these data until the beginning of the second calendar year after costs are incurred. The impact of this rule is mitigated, however, by section 36.612 of the rules, which allows carriers to update on a quarterly basis the calendar year data that they submit to NECA on July 31 of each year.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж–qџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#блллFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССУУSeeФФ 47 C.F.R. РР 36.612. If a carrier files a quarterly update, NECA recalculates the carrier's highЉcost support for the remainder of the year based on the updated data (УУe.g.ФФ, data covering the last nine months of the previous calendar year and the first three months of the current calendar year), rather than the calendar year data submitted on July 31. Thus, the quarterly update provision allows carriers to receive support earlier than the beginning of the second calendar year after costs are incurred. б#XNє\  P}XP#бй d й–жл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe remainder of incumbent LECs, known as "average schedule companies," are not required to perform jurisdictionallyЉseparated cost studies.лFootnote Refлб#єAє\  P}єP#бУУллўўЏ§Ї_Toc458418521Ї§ЏўўўўЏ§Ї_Ref454196085Ї§Џўўл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжrџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССSection 69.605(c) of the Commission's rules defines an average schedule company as "a telephone company that was participating in average schedule settlements on December 1, 1982." 47 C.F.R. РР 69.605(c). Prior to the adoption of the Commission's access charge rules in 1984, incumbent LEC compensation arrangements were handled through private contractual agreements within the telephone industry. The industry's settlement mechanism based the amount of incumbent LEC compensation either on cost studies or average schedule formulas that were used to estimate an incumbent LEC's cost of service. To facilitate implementation of its access charge rules, the Commission incorporated a modified version of the industry's existing average schedule arrangement. УУSee Proposed MTS and WATS Market StructureФФ, Third Report and Order, CC Docket No. 78-72, Phase I, 93 FCC 2d 241 (1983) (УУAverage Schedule Order)ФФ. УУSee also National Exchange Carrier Association, Inc. Proposed Modifications to the 1997 Interstate Average Schedule FormulasФФ, Order on Reconsideration and Order, AAD 97Љ2, DA 97Љ2710 at para. 3 (Comm. Carr. Bur. rel. Dec. 24, 1997).б#XNє\  P}XP#бй d йж Average schedule treatment historically has been available to companies that are presumed, because of their small size, to lack the resources to justify a requirementУ У Ф Фthat they perform separations and access charge cost studies to determine their compensation from interstate services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжФsџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССУУSee Average Schedule Order, supraФФ n. 114.б#XNє\  P}XP#бй d йФж NECA develops a schedule based on generalized industry data to reflect the costs of a typical small incumbent LEC. Subject to Commission approval, NECAРРs average schedule formula is used to provide support to average schedule companies.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжžtџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССThese average schedule companies may convert to "cost companies" and receive compensation from NECA based on their company-specific costs. Once they make this election, however, they cannot later resume average schedule status. УУSeeФФ 47 C.F.R. РР 69.605(c).б#XNє\  P}XP#бй d йžжл Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССStudy Area Freeze. ФФThe Commission froze all study area boundaries effective November 15, 1984 to curtail the ability of incumbent LECs to place highЉcost exchanges within their existing service territories in separate study areas to maximize the payments from the universal service support mechanisms.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжŸuџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУId.ФФб#XNє\  P}XP#бй d йŸж As a result, an incumbent LEC must apply to the Commission for a waiver of the study area boundary if it wishes to sell or purchase an exchange.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжm vџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССThe Commission requires carriers to petition for a waiver whenever a company seeks to create or reconfigure study areas except under three conditions: (a) a separately incorporated company is establishing a study area for a previously unserved area; (b) a company is combining previously unserved territory with one of its existing study areas in the same state; and (c) a holding company is consolidating existing study areas in the same state. УУAmerican Samoa Government and the American Samoa Telecommunications Authority: Petitions for Waivers and Declaratory Rulings to Enable American Samoa to Participate in the Universal Service High Cost Support Program and the National Exchange Carrier Association Pools and TariffsФФ, Order, CC Docket No. 96Љ45, AAD/USB File No. 98Љ41, DA 99Љ1131 (Acct. Pol. Div., Com. Car. Bur. Rel. June 9, 1999) (American Samoa); УУGuam Telephone Authority, Petition for Declaratory RulingФФ, Report and Order, AAD 97Љ27,УУ ФФDA 97Љ595 (Acct. Aud. Div. rel. March 21, 1997) (УУGuam Study Area Waiver OrderФФ). In evaluating petitions seeking a study area waiver, the Commission uses a threeЉpronged standard: (1) the change in study area boundaries must not adversely affect the highЉcost loop fund; (2) the state commission(s) having regulatory authority over the exchange(s) to be transferred must not object to the change; and (3) the public interest must support such a change. УУGuam Study Area Waiver OrderФФ at para. 3. With respect to not adversely affecting the highЉcost loop fund, we have required that study area waivers for a single carrier shall not increase total universal service support by more than one percent. УУ See US West Communications, Inc. and Eagle Telecommunications, Inc, Joint Petition for Waiver of the Definition of Р РStudy AreaРР Contained in Part 36, AppendixЉGlossary of the CommissionРРs Rules,ФФ Memorandum Opinion and Order, 10 FCC Rcd 1771, 1774 at para. 14 (1995), affРРd on recon, 12 FCC Rcd 4644 (1997).б#XNє\  P}XP#бй d йm жл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССInterim Cap on HighЉCost Fund. ФФIn 1993, the Commission became concerned about the rapid and erratic pattern of growth in the size of the highЉcost loop fund and initiated an inquiry to reevaluate its universal service support mechanism and to consider permanent changes in the manner in which highЉcost support would be provided.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж%wџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУAmendment of Part 36 of the CommissionРРs Rules and Establishment of a Joint Board, ФФNotice of Inquiry, FCC 93Љ435 (rel. Sep. 14, 1993).б#XNє\  P}XP#бй d й%ж At that time, the Commission established an interim cap to the universal service fund.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжŸxџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУId.б#XNє\  P}XP#бй d йФФŸж The cap was designed to moderate the growth of the fund while the Commission conducted a rulemaking proceeding and to allow for an orderly transition to the new universal service support mechanisms that would be adopted.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж?yџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee Amendment of Part 36 of the CommissionРРs Rules and Establishment of a Joint Board, ФФRecommended Decision, 9 FCC Rcd 334 (1993); Report and Order, 9 FCC Rcd 303 (1993) (establishing interim cap); Report and Order, 11 FCC Rcd 1077 (1995) (extending cap through July 1, 1996); Report and Order, 11 FCC Rcd 7920 (1996) (extending the cap until the final rules implementing the 1996 Act provisions become effective). б#XNє\  P}XP#бй d й?ж Under the cap, the total fund for a given year may increase by no more than a percentage equal to the percentage growth nationwide in the number of loops for that year.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЏzџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 C.F.R. РР 36.601(c).б#XNє\  P}XP#бй d йЏжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССMay 8, 1997 First Report and Order. ФФIn 1997, the Commission adopted broad revisions to its universal service support mechanisms consistent with the directive of the 1996 Act to ensure that universal service support mechanisms be explicit, sufficient, and sustainable as local competition develops. The Commission established a plan for providing highЉcost support through the explicit federal universal service support mechanism rather than the interstate access charge rate structureлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЯ{џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee First Report and OrderФФ, 12 FCC Rcd at 8926Љ47.б#XNє\  P}XP#бй d йЯж and a methodology for determining highЉcost support based on the forwardЉlooking economic cost of providing the supported services to a particular service area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжб|џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССFirst Report and OrderФФ, 12 FCC Rcd at 8898Љ8926г bb г. In using the term "forwardЉlooking economic cost," we mean the cost of producing services using the least cost, most efficient, and reasonable technology currently available for purchase with all inputs valued at current prices.г dd гб#XNє\  P}XP#бй d йбж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССCurrently, all carriers receive highЉcost support based upon the highЉcost support mechanisms which preЉdate the 1996 Act. As discussed above, nonЉrural carriers will begin receiving highЉcost support based on forwardЉlooking costs on January 1, 2000.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжз}џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУ УССФ ФУУFederalЉState Joint Board on Universal Service, Access Charge ReformФФ, Seventh Report and Order and Thirteenth Order on Reconsideration in CC Docket 96Љ45; Fourth Report and Order in CC Docket No. 96Љ262; and Further Notice of Proposed Rulemaking in CC Docket Nos. 96Љ45, 96Љ262, FCC 99Љ119 (rel. May 28, 1999).б#XNє\  P}XP#бй d йзж The Commission intends that rural carriers also will receive support based on forwardЉlooking costs, but only after further review by the Commission, the Joint Board, and the Rural Task Force appointed by the Joint Board, and in no event before January 1, 2001.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж@~џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУг bb гThirteenth Order on ReconsiderationФФ, FCC 99Љ119 at paras. 21, 129. УУSee alsoФФ УУFirst Report and OrderФФ, 12 FCC Rcd at 8889, para. 204, 8910, para. 245, 8917Љ18, paras. 252Љ56; УУFederalЉState Joint Board on Universal Service Announces the Creation of a Rural Task Force, Solicits Nominations for Membership on Rural Task ForceФФ, Public Notice, FCC 97JЉ1 (rel. Sept. 17, 1997).г dd гб#XNє\  P}XP#бй d й@жл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССUntil a carrier receives highЉcost support based upon forwardЉlooking costs, that carrierРРs support will be determined on the basis of whether the carrier is an incumbent LECлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж|џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССFor purposes of its universal service rules, the Commission adopted the ActРРs statutory definition of incumbent LEC. УУSee ФФ47 C.F.R. РР 54.5; 47 C.F.R. РР 51.5; 47 U.S.C. РР 251(h)(1). An incumbent LEC is defined in the Act as a LEC that, with respect to an area: (1) provided telephone exchange service in such area on February 8, 1996, the date of enactment of the 1996 Act, and (2) was a member of NECA on February 8, 1996, or became such member's successor or assign. б#XNє\  P}XP#бй d й|ж or a competitive eligible telecommunications carrier.ўўЏ§Ї_Ref454196085Ї§ЏўўўўЏ§Ї_Toc453922423Ї§ЏўўўўЏ§Ї_Toc453922423Ї§ЏўўўўЏ§Ї_Toc453922572Ї§ЏўўўўЏ§Ї_Toc453922572Ї§ЏўўўўЏ§Ї_Toc454003589Ї§ЏўўўўЏ§Ї_Toc454003589Ї§ЏўўўўЏ§Ї_Toc454026883Ї§ЏўўўўЏ§Ї_Toc454026883Ї§ЏўўўўЏ§Ї_Toc454163232Ї§ЏўўўўЏ§Ї_Toc454163232Ї§ЏўўўўЏ§Ї_Toc454240647Ї§ЏўўўўЏ§Ї_Toc454240647Ї§ЏўўўўЏ§Ї_Toc454240664Ї§ЏўўўўЏ§Ї_Toc454240664Ї§ЏўўўўЏ§Ї_Toc454003601Ї§ЏўўўўЏ§Ї_Toc454003601Ї§ЏўўўўЏ§Ї_Toc454026897Ї§ЏўўўўЏ§Ї_Toc454026897Ї§ЏўўўўЏ§Ї_Toc454087420Ї§ЏўўўўЏ§Ї_Toc454087420Ї§ЏўўўўЏ§Ї_Toc454240660Ї§ЏўўўўЏ§Ї_Toc454240660Ї§ЏўўўўЏ§Ї_Ref454528275Ї§Џўў A competitive eligible telecommunications carrier is defined in our rules as an eligible telecommunications carrier that does not meet the definition of incumbent LEC. A competitive eligible telecommunications carrier receives the same amount of support per customer that the incumbent LEC previously serving that customer received.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЌ€џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 C.F.R. РР 54.307.б#XNє\  P}XP#бй d йЌжл Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Ref454528275Ї§ЏўўўўЏ§Ї_Toc454357548Ї§ЏўўўўЏ§Ї_Toc454357548Ї§ЏўўўўЏ§Ї_Toc456170662Ї§ЏўўўўЏ§Ї_Toc456170662Ї§ЏўўўўЏ§Ї_Toc456674469Ї§ЏўўўўЏ§Ї_Toc456674469Ї§ЏўўўўЏ§Ї_Toc458418522Ї§ЏўўFederal Share of HighЉCost Supportл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAs discussed above, because the trust relationship creates a unique relationship between the federal government and Indian tribes, the federal government may have authority to undertake additional measures to promote deployment and subscribership on tribal lands and to provide universal service support necessary to offset the particular challenges facing these areas. With respect to highЉcost support on tribal lands, we seek comment on the extent to which states currently support the costs of universal service in tribal lands and whether the Commission should provide an additional portion of the universal service support calculated by the federal support methodology in highЉcost, tribal lands. For instance, with regard to the forwardЉlooking highЉcost support mechanism for nonЉrural carriers, we seek comment on whether, rather than providing support for costs that exceed both a national cost benchmark and the individual state's resources to support those costs, the mechanism should provide support for all costs in unserved tribal lands that exceed the national benchmark.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 3 лб#єAє\  P}єP#бУ УУУззллг Ш гб#XNє\  P}XP#бй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва АА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc458418522Ї§ЏўўўўЏ§Ї_Toc454357549Ї§ЏўўўўЏ§Ї_Toc454357549Ї§ЏўўўўЏ§Ї_Toc456170663Ї§ЏўўўўЏ§Ї_Toc456170663Ї§ЏўўўўЏ§Ї_Toc456674470Ї§ЏўўўўЏ§Ї_Toc456674470Ї§ЏўўўўЏ§Ї_Toc458418523Ї§ЏўўSeparate Study Areas Option for Tribal Landsл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn order to provide additional highЉcost support to tribal lands, we seek comment on modifications to our study area rules. Our study area rules provide a mechanism through which the Commission has controlled the growth of the highЉcost universal service support mechanism. Universal service support for highЉcost areas is determined on the basis of average loop costs throughout a study area. Averaging costs on a studyЉarea wide basis spreads the burden of serving highЉcost areas among all of the telecommunications subscribers in that study area. As a result, however, carriers with relatively low average loop costs in a particular study area receive no support for serving additional customers in a highЉcost portion of that study area if the loop costs in the highЉcost portion do not raise the overall average loop costs for the study area above a specific national benchmark, currently 115% of the national average cost per loop.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжаџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee Thirteenth Order on ReconsiderationФФ at para. 98.б#XNє\  P}XP#бй d йаж By freezing study area boundaries, the Commission sought to eliminate incentives for carriers to place highЉcost exchanges in separate study areas in order to receive additional support for providing service to those study areas. As a result of these two policies, however, certain carriers may experience strong financial disincentives to serving unprofitable highЉcost customers in their study areas and other carriers may lack incentives to purchase those unserved exchanges.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn order to promote the deployment of universal services on tribal lands, we seek comment on modifying our rules to permit carriers to treat tribal landsлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжє‚џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССFor a discussion of the possible definitions of Р Рtribal landРР, УУseeФФ para. 50, above.б#XNє\  P}XP#бй d йєж as a distinct study area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж‚ƒџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССThis exception would not affect the requirement that, for a rural carrier, its service area is defined to mean their study area. УУSeeФФ 47 U.S.C. РР 214(e)(5). Rural carriers, like other carriers, may have study areas in multiple states. As a result of the rule change, they now may have study areas in multiple states and on tribal lands. For rural carriers, the service area for purposes of determining universal service obligations and support, continues to be their study areas. б#XNє\  P}XP#бй d й‚ж We seek comment on whether, by providing an exception to our study area rules, we can eliminate regulatory requirements that may deter carriers from serving highЉcost, tribal lands. For example, one option may be that the tribal study area for a carrier will consist of all of the tribal lands served by the carrier within the borders of a single state. This means that carriers may have a tribal study area in each state in which it provides service on tribal lands. We seek comment on whether the tribal study area should include all of the tribal lands in a state (rather than, for example, a single nationwide tribal study area) because states use study areas for purposes of determining intrastate revenue requirements. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe emphasize that the proposal to allow tribal study areas is not related to the issue of the area over which costs are averaged to determine support using the new highЉcost mechanisms, which is pending in the highЉcost proceeding.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЭ„џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee Thirteenth Order on ReconsiderationФФ at V.B.2.б#XNє\  P}XP#бй d йЭж We seek comment on how allowing a separate tribal study area could affect whether the carrier serving that area falls within the statutory definition of a rural carrier for providing service to that area. If a carrier designates the tribal lands within a state as a separate study area, the number of access lines or inhabitants in that newly created study area may qualify the carrier as a rural carrier with respect to that study area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вже…џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ 47 U.S.C. РР 153(37) (УУcited ФФin n. 10, above).б#XNє\  P}XP#бй d йеж We seek comment on whether this may result in some carriers, currently designated as nonЉrural, being considered rural for purposes of receiving universal service support in certain tribal study areas. л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc458418523Ї§ЏўўўўЏ§Ї_Toc453922425Ї§ЏўўўўЏ§Ї_Toc453922425Ї§ЏўўўўЏ§Ї_Toc453922574Ї§ЏўўўўЏ§Ї_Toc453922574Ї§ЏўўўўЏ§Ї_Toc454003591Ї§ЏўўўўЏ§Ї_Toc454003591Ї§ЏўўўўЏ§Ї_Toc454026885Ї§ЏўўўўЏ§Ї_Toc454026885Ї§ЏўўўўЏ§Ї_Toc454163234Ї§ЏўўўўЏ§Ї_Toc454163234Ї§ЏўўўўЏ§Ї_Toc454240649Ї§ЏўўўўЏ§Ї_Toc454240649Ї§ЏўўўўЏ§Ї_Toc454003600Ї§ЏўўўўЏ§Ї_Toc454003600Ї§ЏўўўўЏ§Ї_Toc454026896Ї§ЏўўўўЏ§Ї_Toc454026896Ї§ЏўўўўЏ§Ї_Toc454087419Ї§ЏўўўўЏ§Ї_Toc454087419Ї§ЏўўўўЏ§Ї_Toc454240662Ї§ЏўўўўЏ§Ї_Toc454240662Ї§ЏўўўўЏ§Ї_Toc454003590Ї§ЏўўўўЏ§Ї_Toc454003590Ї§ЏўўўўЏ§Ї_Toc454026884Ї§ЏўўўўЏ§Ї_Toc454026884Ї§ЏўўўўЏ§Ї_Toc454163233Ї§ЏўўўўЏ§Ї_Toc454163233Ї§ЏўўўўЏ§Ї_Toc454240648Ї§ЏўўўўЏ§Ї_Toc454240648Ї§ЏўўўўЏ§Ї_Toc454357550Ї§ЏўўўўЏ§Ї_Toc454357550Ї§ЏўўўўЏ§Ї_Toc456170664Ї§ЏўўўўЏ§Ї_Toc456170664Ї§ЏўўўўЏ§Ї_Toc456674471Ї§ЏўўўўЏ§Ї_Toc456674471Ї§ЏўўўўЏ§Ї_Toc458418524Ї§ЏўўInterim Cap on the HighЉCost Fundл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn the УУFirst Report and Order,ФФ the Commission concluded that it would maintain the cap on the existing highЉcost loop support mechanism until all carriers receive support based on the new highЉcost funding mechanism.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЬ†џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУFirst Report and Order, ФФ12 FCC Rcd at 8929Љ8930.б#XNє\  P}XP#бй d йЬж The cap on the highЉcost loop fund was initially intended as an interim measure.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж‡џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУAmendment of Part 36 of the CommissionРРs Rules and Establishment of a Joint BoardФФ, Report and Order, 9 FCC Rcd 303 (1993).б#XNє\  P}XP#бй d йж Commission rules require that if total support, based on each carrierРРs actual costs, is above the total allowed capped amount, each recipient of highЉcost loop support will receive a reduced amount of support to keep the total fund at the capped amount.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжŠˆџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССCommission rules require that the national average cost per loop be increased by an amount that reduces each carrierРРs highЉcost fund payment in order that the total fund equal the capped amount. УУSeeФФ 47 C.F.R. РР 36.622 (c) and (d).б#XNє\  P}XP#бй d йŠж The cap has served its purpose in controlling excessive growth in the size of the fund during the past six years as the Commission has reformed its universal service support mechanisms. We have stated that the rural carriers will receive support based on the new highЉcost funding mechanism no earlier than January 1, 2001. The Commission has not established a timetable for moving rural carriers to a forwardЉlooking highЉcost support mechanism. Rather, this undertaking is on hold pending the Rural Task Force making its recommendation to the Joint Board; the Joint Board may recommend that the Commission conduct further proceedings on certain issues. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAllowing carriers to designate separate tribal study areas, as proposed above, could mean that additional carriers may be entitled to a portion of the highЉcost support fund. We seek comment on the need for the Commission to provide additional highЉcost support under the existing mechanisms to tribal lands. In order to do so, the Commission may either lift the cap on the highЉcost fund to allow for growth in the size of the fund attributable to the separate study area proposal or reallocate the existing funds among the expanded category of recipients. We seek comment on these options. We also seek comment on any other options that may assist the Commission in achieving the goal of targeting additional federal highЉcost support to tribal lands.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 2 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc458418524Ї§ЏўўўўЏ§Ї_Toc456170666Ї§ЏўўўўЏ§Ї_Toc456170666Ї§ЏўўўўЏ§Ї_Toc456674473Ї§ЏўўўўЏ§Ї_Toc456674473Ї§ЏўўўўЏ§Ї_Toc458418525Ї§ЏўўўўЏ§Ї_Toc458418525Ї§ЏўўўўЏ§Ї_Toc458419295Ї§ЏўўўўЏ§Ї_Toc458419295Ї§ЏўўўўЏ§Ї_Toc460144398Ї§ЏўўRevisions to Lifelineл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe CommissionРРs Lifeline support program for lowЉincome consumers is designed to reduce the monthly billed cost of basic service for lowЉincome consumers, which we anticipate will increase telephone penetration. Lifeline provides carriers with three elements of universal service support.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжU‰џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССFederal universal service support for lowЉincome consumers is available only where eligibility is based solely on income or factors directly related to income. 47 C.F.R. РР 54.409. УУб#XNє\  P}XP#бй d йФФUж The support must be passed through to each qualifying lowЉincome consumer by an equivalent reduction in his or her monthly bill for telephone service. All carriers receive a baseline amount of $3.50 per month per Lifeline customer in the form of a waiver of the federal subscriber line charge (SLC).лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЎŠџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 C.F.R. РР 54.403(a)б#XNє\  P}XP#бй d йЎж An additional $1.75 per month is available per Lifeline customer if Р Рthe state commission approves an additional reduction of $1.75 in the amount paid by consumers. . . .РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЎ‹џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 C.F.R. РР 54.403(a)б#XNє\  P}XP#бй d йЎж Finally, carriers can receive federal matching funds of fifty percent of the amount of state Lifeline support, up to a maximum of an additional $1.75 per month, as long as the entire amount is passed on to subscribers.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЎŒџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 C.F.R. РР 54.403(a)б#XNє\  P}XP#бй d йЎж Federal Lifeline support per qualifying lowЉincome consumer is capped at $7.00 per month.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЎџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 C.F.R. РР 54.403(a)б#XNє\  P}XP#бй d йЎж л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc460144398Ї§ЏўўўўЏ§Ї_Toc456674474Ї§ЏўўўўЏ§Ї_Toc456674474Ї§ЏўўўўЏ§Ї_Ref456681890Ї§ЏўўўўЏ§Ї_Ref456681890Ї§ЏўўўўЏ§Ї_Toc458418526Ї§ЏўўState Commission Approvalл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Commission has received petitions for waiver of our Lifeline rules to allow carriers not subject to the jurisdiction of a state commission to receive the second tier of federal support where no regulations issued by local authorities (including state commissions and tribal authorities) exist that would prevent an equivalent reduction in the monthly telephone bills of qualifying lowЉincome consumers.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжОŽџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ Petitions for Waiver of Section 54.403(a) filed by Gila River Telecommunications, Inc. (January 22, 1999), Tohono OРРodham Utility Authority (January 26, 1999),УУ ФФSan Carlos Telecommunications, Inc. (February 12, 1999) and Fort Mojave Telecommunications, Inc. (February 17, 1999).б#XNє\  P}XP#бй d йОж In drafting our rule, we did not consider the situation faced by carriers not subject to the jurisdiction of a state commission. Based on these waiver petitions, it appears that our rule has given rise to certain situations that we did not anticipate. The requirement of state consent prior to making available the second tier of federal Lifeline support was intended to reflect deference to the states in such areas of traditional state expertise and authority.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЦџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУFirst Report and OrderФФ 12 FCC Rcd at 8963.б#XNє\  P}XP#бй d йЦж We did not intend to require carriers not subject to state commission jurisdiction to seek either state commission action or a Commission waiver in order to receive the additional $1.75 available under federal support mechanisms, where that additional support would be passed through to consumers. For these reasons, we propose to modify our rule to state that an additional $1.75 per qualifying lowЉincome consumer will be provided to the carrier where the additional support will result in an equivalent reduction in the monthly bill of each qualifying lowЉincome consumer. This proposed revision maintains deference to the state commission because the additional support will not be provided where a state commission with jurisdiction to do so has not permitted an equivalent reduction in the consumerРРs bill. The proposed revision is intended to eliminate the need for carriers not subject to the jurisdiction of a state commission to seek state commission action or a Commission waiver. We seek comment on the proposed revision. л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc458418526Ї§ЏўўўўЏ§Ї_Toc456674475Ї§ЏўўўўЏ§Ї_Toc456674475Ї§ЏўўўўЏ§Ї_Toc458418527Ї§ЏўўFederal Support on Tribal Landsл! Heading 3 !лззŒФ ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn addition, in keeping with principles of tribal sovereignty, we seek comment on modifying our rule to provide that the third tier of federal support, a maximum of $1.75 per month per lowЉincome consumer, is available to customers on tribal lands. As described above, the federal government has a special trust relationship with Indian tribes, and this entails special responsibilities, particularly where tribal reservations appear to be particularly disadvantaged by a lack of important resources, like telecommunications.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ УУsupra ФФnote ўў§ џџd §ўўўў§ џџd §ўў76ўў§ џџd §ўўУУўў§ џџd §ўў.ФФб#XNє\  P}XP#бй d йж With respect to tribal lands, we seek comment on the extent to which states currently provide the support necessary to qualify for matching funds for the third tier of Lifeline support.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж’‘џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#блллFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee Monitoring Report,ФФ June 1999, CC Docket No. 98Љ202, (rel. Jul. 12, 1999). Section 2, LowЉIncome Support, contained information about the Lifeline and Link Up support mechanisms. Table 2.1 Lifeline Monthly Support by State or Jurisdiction provides information about the amount of support in each stateРРs programs. УУSee alsoФФ National Exchange Carrier Association, Federal Universal Service Programs Fund Size Projections & Contribution Base for the Third Quarter 1999, appendix 5. (filed April 30, 1999).б#XNє\  P}XP#бй d й’ж We also seek comment on whether the federal government, in light of its trust relationship with Indian tribes, should provide carriers serving tribal lands the third tier of Lifeline support, $1.75 per qualifying Lifeline customer, as long as all such Lifeline customers receive an equivalent reduction in their bills. Unlike in other areas, this federal support amount would not be contingent upon the state in which the tribal lands are located providing support. ўўЏ§Ї_Toc458418527Ї§ЏўўўўЏ§Ї_Toc456674476Ї§Џўўл Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc456674476Ї§ЏўўўўЏ§Ї_Toc458418528Ї§ЏўўAmendments to Consumer Qualification Criteriaл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether the Commission should expand the consumer qualifications for Lifeline assistance to ensure that low income consumers on tribal lands are able to participate fully in the Lifeline assistance program. Under our current rules, in states that provide intrastate matching funds, a consumer must meet the criteria established by the state commission to receive federal Lifeline support.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЯ’џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г СС47 C.F.R. РР 54.409(a).б#XNє\  P}XP#бй d йг dd гЯж In most states, a consumer can meet the criteria by demonstrating or certifying that he or she participates in one of several narrowly targeted low income assistance programs.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжь“џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУССSee Universal Service OrderФФ, 12 FCC Rcd at 8973.б#XNє\  P}XP#бй d йг dd гьж We are concerned that some state commissions have established Lifeline criteria that may inadvertently exclude low income consumers on tribal lands because the criteria do not include low income assistance programs that are specifically targeted toward Indians living on tribal lands.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжž”џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g., Overcoming Obstacles Proceeding, ФФComments of Larry Wetsit, Nemont Telephone Cooperative, Inc.; УУOvercoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of Jerome Block, Commissioner, New Mexico Public Regulation Commission, at p. 136.б#XNє\  P}XP#бй d йžж Similarly, in those states that do not provide intrastate matching funds (and thus do not establish the consumer qualifications for Lifeline participation), a consumer seeking Lifeline support must certify his or her participation in one of the following CommissionЉdesignated low income assistance programs: Medicaid; food stamps; Supplemental Security Income; federal public housing assistance; or LowЉIncome Home Energy Assistance Program.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЯ•џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г СС47 C.F.R. РР 54.409(b).б#XNє\  P}XP#бй d йг dd гЯжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on how the Commission might expand the consumer qualifications for Lifeline support to enable low income consumers on tribal lands to participate in the Lifeline assistance program. In particular, we seek comment about whether we should amend our rules to allow low income consumers on tribal lands to qualify for Lifeline support by certifying their participation in additional means tested assistance programs, such as the programs administered by the Bureau of Indian AffairsлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжш–џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУССSee, e.g.,ФФ 25 C.F.R. РР 20.1 УУet seq.ФФб#XNє\  P}XP#бй d йг dd гшж or Indian Health Services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж„—џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee ФФ42 U.S.C. 2002. УУSee also Overcoming Obstacles Proceeding, ФФComments of Nemont Telephone Cooperative at p. 2 (Indians utilize the services of the Indian Health Services ... which is an entitlement and not health insurance).б#XNє\  P}XP#бй d й„ж We encourage commenters to indicate whether there might be other suitable criteria ЉЉ based solely on income or factors related to income ЉЉ that should be used to determine qualification for low income members of tribal lands. We ask commenters to indicate whether providing Indians living on tribal lands with greater access to Lifeline assistance might increase incentives for eligible telecommunications carriers to serve these tribal lands. Finally, we seek comment on whether the Commission could apply any new criteria specifically targeted to low income Indians living on tribal lands both to states that do not provide matching funds and states that do provide such funds.л Para# л б#XNє\  P}XP#блллHeading 1 лааб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йФФвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒви€иўўЏ§Ї_Toc458418528Ї§ЏўўўўЏ§Ї_Toc456674477Ї§ЏўўўўЏ§Ї_Toc456674477Ї§ЏўўўўЏ§Ї_Toc456674472Ї§ЏўўўўЏ§Ї_Toc456674472Ї§ЏўўўўЏ§Ї_Ref456681847Ї§ЏўўўўЏ§Ї_Ref456681847Ї§ЏўўўўЏ§Ї_Toc458418529Ї§ЏўўўўЏ§Ї_Toc458418529Ї§ЏўўўўЏ§Ї_Toc458419296Ї§ЏўўўўЏ§Ї_Toc458419296Ї§ЏўўўўЏ§Ї_Hlt460056417Ї§ЏўўўўЏ§Ї_Hlt460056417Ї§ЏўўўўЏ§Ї_Toc460144399Ї§ЏўўDESIGNATING УУEligible Telecommunications Carriers Pursuant to Section 214(ФФeУУ)(6)л!Heading 1 !лзз ааФ ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#бллг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Toc460144399Ї§ЏўўўўЏ§Ї_Ref454016240Ї§ЏўўPursuant to section 254(e) of the 1996 Act, not all telecommunications providers are eligible for federal universal service support. For purposes of the universal service support mechanisms for highЉcost areas and low income consumers Р Рonly an eligible telecommunications carrier designated under section 214(e) shall be eligibleРР to receive federal universal service support.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЫ˜џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb гСС47 U.S.C. РР 254(e).б#XNє\  P}XP#бй d йг dd гЫж To be designated as an eligible telecommunications carrier, a carrier must:лFootnote Refлб#єAє\  P}єP#бУУлл л#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжо™џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йг cc гФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb гСС47 U.S.C. РР 214(e)(1).б#XNє\  P}XP#бй d йг dd гожл Para# л б#XNє\  P}XP#блла xА`  аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXАм4` Œ И ф <h”РьDpœШє LxЄа џџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааг ‚Ј§ г а `  ай d йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXАм4` Œ И ф <h”РьDpœШє LxЄа џџџџџџџџџџџџџџџџџџџџџџџџџџџџАааСС(A) offer the services that are supported by Federal universal service support mechanisms under section 254(c), either using its own facilities or a combination of its own facilities and resale of another carrier's services (including the services offered by another eligible telecommunications carrier); and й йа А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааг ‚X г(B) advertise the availability of such services and the charges therefor using media of general distribution. л Para# лб#XNє\  P}XP#блла ААА аг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССUnder section 214(e), the primary responsibility for designating a prospective carrier as an eligible telecommunications carrier lies with the state commission.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжОšџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 г bb гU.S.C. РР 214(e)(2) (Р РA State Commission shall upon its own motion or upon request designate a common carrier that meets the requirements of paragraph (1) as an eligible telecommunications carrier for a service area designated by the State Commission.РР)г dd гб#XNє\  P}XP#бй d йОж In a situation where there is no common carrier willing to provide supported services to an unserved community that requests such services, section 214(e)(3) states that:лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЯ›џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. г bb гРР 214(e)(3).г dd гб#XNє\  P}XP#бй d йЯжл Para# л г ‚X гб#XNє\  P}XP#бллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААаа л Body Text Inла ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааб#XNє\  P}XP#блла А` ` аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` аа[T]he Commission, with respect to interstate services . . . or a State commission, with respect to intrastate services, shall determine which common carrier or carriers are best able to provide such service to the requesting unserved community or portion thereof and shall order such carrier or carriers to provide such service for that unserved community or portion thereof.л# Body Text In#л а ` ` А` аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллл Body Text Inла А` ` аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааб#XNє\  P}XP#блла ` А аУУл# Body Text In#л а ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллл Body Text Inла ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааб#XNє\  P}XP#блла ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааФФIn the event that a common carrier is not subject to the jurisdiction of a state commission, section 214(e)(6) authorizes the Commission, upon request, to designate the carrier as an eligible telecommunications carrier, for a service area designated by the Commission, if the carrier meets the qualifications for eligible telecommunications carrier status.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЮœџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС47 U.S.C. г bb гРР 214(e)(6).г dd гб#XNє\  P}XP#бй d йЮж л# Body Text In#л а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССSection 214(e) of the Act states that only an Р Рeligible telecommunications carrierРР designated under section 214(e) shall be eligible to receive federal universal service support.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЌџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР 214(e).б#XNє\  P}XP#бй d йЌж Pursuant to section 214(e)(2) and (e)(5) of the Act, state commissions are generally responsible for designating eligible telecommunications carriers and for designating service areas for such carriers.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЛžџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 USC РРРР 214(e)(2) and (e)(5).б#XNє\  P}XP#бй d йЛж Initially, section 214(e) did not include a provision for designating carriers not subject to the jurisdiction of a state commission. The Act was amended in 1997 to address this Р Рoversight.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжшŸџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССStatement of Senator McCain, 143 Cong. Rec. S115545Љ04, S115546 (Oct. 31, 1997). б#XNє\  P}XP#бй d йшж Section 214(e)(6) authorizes the Commission to designate as an eligible telecommunications carrier Р Рa common carrier providing telephone exchange service and exchange access that is not subject to the jurisdiction of a State Commission.РР We tentatively conclude that, by adding section 214(e)(6), Congress sought to ensure that carriers serving all regions of the United States have access to a mechanism that will allow them to be designated as eligible telecommunications carriers, if they meet the statutory requirements. Recognizing that the designation of eligible telecommunications carriers is primarily a state commission function, Congress granted this Commission the authority for this task in the event that a carrier is not subject to the jurisdiction of a state commission.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж  џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ Procedures for FCC Designation of Eligible Telecommunications Carriers Pursuant to Section 214(e)(6) of the Communications Act, Public Notice, FCC 97Љ419 (rel. Dec. 29, 1997). Until recently, carriers seeking eligible telecommunications carrier designation from the Commission have been tribally owned or tribal cooperatives. УУSeeФФ УУDesignation of Fort Mojave Telecommunications, Inc., Gila River Telecommunications, Inc., San Carlos Telecommunications, Inc., and Tohono OРРodham Utility Authority as Eligible Telecommunications Carriers Pursuant to Section 214(e)(6) of the Communications ActФФ, Memorandum Opinion and Order, AAD/USB File. No. 98028, DA 98Љ392, (rel. Feb. 27, 1998); УУPetition of Saddleback Communications for Designation as an Eligible Telecommunications Carrier Pursuant to Section 214(e)(6) of the Communications ActФФ, Memorandum Opinion and Order, CC Docket No. 96Љ45, DA 98Љ2237 (rel. Nov. 4, 1998); УУCheyenne River Sioux Tribe Telephone Authority Seeks FCC Designation as an Eligible Telecommunications Carrier Pursuant to Section 214(e)(6) of the Communications Act,ФФ Public Notice, AAD/USB File No. 98Љ21, DA 98Љ150 (rel. Jan. 28, 1998). л#Footnote Tex#л б#XNє\  P}XP#бллй йлFootnote Texлг ‚, гб#єAє\  P}єP#бллй d йб#єxж*ф0 x}7ћє˜#бOn June 2, 1999, however, we received a petition from a carrier that is not affiliated with a tribe to serve a tribal area. УУPetition of Smith Bagley, Inc., for Designation as an Eligible Telecommunications Carrier: Pleading Cycle EstablishedФФ, Public Notice, DA 99Љ1331 (rel. Jul. 7, 1999). We do not intend to delay this application pending the adoption of final rules in this proceeding. We will consult with the tribal authorities and relevant state commission prior to making a designation on how best to consider any input we may receive. The example is merely illustrative of the challenges we face in coordinating our federal universal service policies with tribal interests.б#Xж*ф0 x}7ћX˜#бй d йб#XNє\  P}XP#б ж б#Xж*ф0 x}7ћX˜#бл Para# лŒб#XNє\  P}XP#бллб#єxж*ф0 x}7ћє˜#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAlthough some of the legislative history of section 214(e)(6) focuses on the ability of triballyЉowned carriers to be designated as eligible telecommunications carriers,лFootnote Refлб#єAє\  P}єP#бУУлл л#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжіЁџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ, УУe.g., ФФStatement of Senator McCain, 143 Cong. Rec. S115545Љ04, 115546 (Oct. 31, 1997) (Р Р[t]ypically, States also have no jurisdiction over tribally owned companies which may or may not be regulated by a tribal authority that is not a State commission per se.РР); Statement of Representative Bliley, 143 Cong. Rec. H10807Љ02 (Nov. 13, 1997) (Р Рsome common carriers providing service today are not subject to the jurisdiction of a State commission; most notably, some carriers owned or controlled by native AmericansРР); Statement of Representative Markey, 143 Cong. Rec. H10807Љ02, H10808 (Nov. 13, 1997) (Р Р[t]he bill before us today allows a common carrier that is not subject to the jurisdiction of a State commission, including those telephone companies owned by certain federallyЉrecognized Indian tribes, to be designated. . .РР).б#XNє\  P}XP#бй d йіж the statutory language and other legislative history is not so limited. The other legislative history states that Р Рthe intent of this bill is to cover such situations where a State commission lacks jurisdiction over a carrier, in which case the FCC determines who is eligible to receive federal universal service support.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжыЂџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССStatement of Representative Bliley, 143 Cong. Rec. H10807Љ02, H10809 (Nov. 13, 1997).б#XNє\  P}XP#бй d йыж The legislative history also makes clear that Р Рnothing in this bill is intended to impact litigation regarding jurisdiction between State and federally recognized tribal entitiesРР or to Р Рexpand or restrict the existing jurisdiction of State commissions over any common carrier or provider in any particular situation."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЃџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ Colloquy between Representatives Thune and Bliley, 143 Cong. Rec. H10807Љ02, H10809 (Nov. 13, 1997). б#XNє\  P}XP#бй d йж In the following paragraphs, we seek comment on how section 214(e)(6) should be interpreted and implemented with respect to carriers (whether tribally owned or otherwise) that provide telecommunications services to tribal areas. л Para# л б#Xж*ф0 x}7ћX˜#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССFirst, however, we seek comment identifying other situations in which carriers providing telephone exchange and exchange access services to areas other than tribal lands are not subject to state commission jurisdiction and thus must seek designation as eligible telecommunications carriers from the Commission. In this context, we seek comment on whether the Commission, rather than state commissions, has the jurisdiction to designate terrestrial wireless or satellite carriers as eligible telecommunications carriers. If such carriers submit applications for designation pursuant to section 214(e)(6) during the pendency of this proceeding, we will consider them on a case by case basis in light of the statutory language and the showings made by the affected parties. We also note that our analysis of the scope of the designation provision of section 214(e)(6) is not intended to affect any other decision with respect to the authority of state commissions or tribal authorities to regulate telecommunications on tribal lands or over terrestrial wireless or satellite carriers.л Para# л б#Xж*ф0 x}7ћX˜#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe statutory language of section 214(e)(6) is ambiguous with respect to when the CommissionРРs authority to designate eligible telecommunications carriers is triggered. It is not clear whether the CommissionРРs authority is triggered when a carrier is not subject to the jurisdiction of a state commission or when the service or access the carrier provides is not subject to the jurisdiction of a state commission. Thus, the initial question in interpreting section 214(e)(6) with respect to the provision of telecommunications service in tribal lands is under what circumstances the Commission may designate carriers as eligible telecommunications carriers. The title of section 214(e)(6), Р РCommon Carriers not Subject to State Commission Jurisdiction,РР suggests that the triggering inquiry is whether the carrier is subject to state commission jurisdiction. We tentatively conclude, however, that the better interpretation of section 214(e)(6) is that the determination of whether a carrier is subject to the jurisdiction of a state commission depends in turn on the nature of the service provided (УУe.g. ФФtelephone exchange or access service provided by wire, satellite or terrestrial wireless) or the geographic area in which the service is being provided (УУe.g.ФФ tribal lands). This interpretation is supported by the legislative history of section 214(e)(6). Representative Tauzin stated that Р РS.1354 makes a technical correction to the Act that will make it possible for telephone companies serving УУareasФФ not subject to the jurisdiction of a State Commission, to be eligible to receive federal Universal Service support.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж:Єџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССStatement of Representative Tauzin, 143 Cong. Rec. H10807Љ02, H10809 (Nov. 13, 1997) (emphasis added). УУSee alsoФФ Statement of Representative Bliley at H10809.б#XNє\  P}XP#бй d й:ж Our tentative conclusion that the nature of the service or the geographic area in which the carrier provides it should be the basis for distinguishing between the designation authority of the Commission and state commission under section 214(e)(6), is consistent with other provisions of the Act. Section 2 of the Act similarly distinguishes between federal and state jurisdiction over telecommunications services based on the geographic area in which the service is provided. Section 332(3) of the Act limits state authority on the basis of the service provided (УУi.e.ФФ commercial and private mobile service). We seek comment on this analysis and on any other factors which may be relevant to this determination.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССOur next question then is under what circumstances are telecommunications carriers providing telecommunications services on tribal lands subject to state commission authority? In section III.A.2, above, we seek comment on the extent to which a state commission has jurisdiction over triballyЉowned carriers seeking to provide telecommunications service on tribal lands and over nonЉtriballyЉowned carriers seeking to provide such service on tribal lands. The answer to these questions will determine whether the Commission may designate carriers seeking to provide service on tribal lands as eligible telecommunications carriers. With respect to triballyЉowned carriers seeking to provide telecommunications service on tribal lands, we note that state law is generally inapplicable when states attempt to regulate the conduct of tribal members directly within reservation boundaries,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжьЅџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй Ќ йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааУУФФССлFootnote Refлб#єAє\  P}єP#бУУллй Ш йб#XNє\  P}XP#бй Ш йб#Xж*ф0 x}7ћX˜#бг bb гл#Footnote Ref#лб#єAє\  P}єP#бФФллй Ш йб#єxж*ф0 x}7ћє˜#б УУSee White Mountain Apache Tribe v. BrackerФФ, 448 U.S. 136, 144 (1980); УУNew Mexico v. Mesclaero Apache TribeФФ, 462 U.S. 324, 331Љ332.б#Xж*ф0 x}7ћX˜#бй Ш йб#XNє\  P}XP#бг aa гг dd гьж except in "exceptional circumstances."лFootnote Refлб#єAє\  P}єP#бУУллв X0УУФФX0УУФФ вжеІџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССУУNew Mexico v. Mesclaero Apache TribeФФ, 462 U.S. at 331Љ32. б#XNє\  P}XP#бй d йеж л#Footnote Ref#лб#XNє\  P}XP#бФФлл We seek comment on whether, for the purpose of eligible telecommunications carrier designation, triballyЉowned carriers providing telecommunications services within tribal reservations would be subject to state regulatory authority. б#XЯОІ P}7ћXP#бл Para# л б#XNє\  P}XP#бллб#єxЯОІ P}7ћєP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe further recognize that when states seek to regulate nonЉtribal members and their activities conducted within a reservation, the appropriateness of the state's assertion of regulatory authority is determined by a "particularized inquiry" into the nature of the state, federal, and tribal interests at stake. Specifically, the analysis turns "on whether state authority is preЉempted by the operation of federal law; and '[s]tate jurisdiction is preЉempted . . . if it interferes or is incompatible with federal and tribal interests reflected in federal law, unless the state interests at stake are sufficient to justify the assertion of state authority.' The inquiry is to proceed in light of traditional notions of Indian sovereignty and the congressional goal of Indian selfЉgovernment, including its 'overriding goal' of encouraging tribal selfЉsufficiency and economic development."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжOЇџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУCalifornia v. Cabazon Band of Mission IndiansФФ, 480 U.S. 202, 216 quoting УУNew Mexico v. MescaleroФФ УУApache TribeФФ, 462 U.S. 324, 334Љ5 (1983) (internal citations omitted).б#XNє\  P}XP#бй d йOж We recognize that this inquiry is a particularized one, and thus specific to each state and the facts and circumstances surrounding the provision of telecommunications services by nonЉtribal members within those tribal lands. However, we seek comment on whether there are any general federal, state and tribal interests at stake which might inform the inquiry and help provide general guidance on the proper boundaries of state authority in this case. Specifically, we seek comment on the federal government's interest in assuming authority over the designation of eligible telecommunications services, and the extent to which state authority would be preempted by the operation of federal law ЉЉ namely section 214 or other relevant provisions or other federal or tribal interests reflected in federal law. л Para# л б#XЯОІ P}7ћXP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe also seek comment on the states' interests in designating eligible telecommunications carriers, as well as the implications of state designation on Indian sovereignty, selfЉgovernment and Р Рtribal selfЉsufficiency and economic development.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЦЈџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУCalbazon Band of Mission IndiansФФ, 480 U.S. at 216. б#XNє\  P}XP#бй d йЦж We recognize, however, that some state commissions have asserted jurisdiction over carriers seeking to provide service on tribal lands, and that these commissions regulate certain aspects of a carrierРРs provisions of service on tribal lands.лFootnote Refлб#єAє\  P}єP#бУУллв X0УУФФX0УУФФ вж7Љџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУSee, e.gФФ. The Cheyenne River Sioux Tribe Telephone Authority and U S West Communications, Inc., Joint Petition for Preemption Pursuant to section 253, CC Docket No. 98Љ6 (Jan. 22, 1998); УУCheyenne River Sioux Tribe Telephone Authority and U S West v. PUC of South Dakota,ФФ 1999 WL 314108 (S.D. May 19, 1999) (affirming South Dakota PUCРРs decision to deny U S WestРРs proposed sale of three exchanges to the Cheyenne River Sioux Tribe Telephone Authority.) In section III.A, we seek comment on the nature and extent of state and tribal regulation of telecommunications services provided by tribal carriers on tribal lands. We also seek comment on the extent to which, and on what basis, states have previously designated tribal and nonЉtribal carriers as eligible telecommunications carriers eligible to receive universal service support.б#єxж*ф0 x}7ћє˜#бУУб#Xж*ф0 x}7ћX˜#бй d йб#XNє\  P}XP#бФФ7ж л#Footnote Ref#лб#XNє\  P}XP#бФФлл л Para# л б#XЯОІ P}7ћXP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn implementing section 214(e)(6), we are concerned that the fact intensiveness and the legal complexity of determining whether a state has jurisdiction over carriers seeking designation as an eligible telecommunications carrier may lead to confusion, duplication of efforts and needless controversy among carriers, tribal authorities, state commissions and this Commission, which could undermine efforts to achieve our universal service goals. For these reasons, we propose the following process to treat applications for the CommissionРРs designation of eligible telecommunications companies eligible to receive universal service support for serving tribal land. Carriers seeking designation as an eligible telecommunications carrier from this Commission, whether to serve tribal lands or on the basis of other jurisdictional arguments,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЂЊџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g., Petition of Smith Bagley, Inc., for Designation as an Eligible Telecommunications Carrier: Pleading Cycle EstablishedФФ, Public Notice, DA 99Љ1331 (rel. Jul. 7, 1999). УУSeeФФ 47 U.S.C. РР 332 (Р Рno state or local government shall have any authority to regulate the entry of or the rates charged by any commercial mobile service or any private mobile service, except that this paragraph shall not prohibit a state from regulating the other terms and conditions of commercial mobile services . . .РР).б#XNє\  P}XP#бй d йЂж should consult with the relevant tribal authority, where appropriate, and the state commission on the issue of whether the state commission has jurisdiction to designate the carrier. In situations where the tribal authority and the state commission agree that the state has jurisdiction, we anticipate that the state would conduct the designation proceeding. In instances where the tribal authority challenges the stateРРs exercise of jurisdiction, we encourage the carriers, with the support of the tribal authority, to apply to this Commission for designation. In the public comment period subsequent to a carrierРРs application for designation as an eligible telecommunications carrier, the carriers and tribal authorities would be expected to demonstrate why Commission designation is appropriate. Interested parties, including the state commission, that disagree with the CommissionРРs exercise of jurisdiction would also be expected to raise their challenges in that proceeding. We seek comment on this proposal and suggestions for other ways in which the determination of whether the designation must be performed by the Commission or a state commission could be simplified or streamlined.л Para# л б#XЯОІ P}7ћXP#блллHeading 1 лааб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒви€иўўЏ§Ї_Ref454016240Ї§ЏўўўўЏ§Ї_Ref456681867Ї§ЏўўўўЏ§Ї_Ref456681867Ї§ЏўўўўЏ§Ї_Toc458418530Ї§ЏўўўўЏ§Ї_Toc458418530Ї§ЏўўўўЏ§Ї_Toc458419297Ї§ЏўўўўЏ§Ї_Toc458419297Ї§ЏўўўўЏ§Ї_Toc460144400Ї§ЏўўUnserved Areas ЉЉ Implementation of Section 214ФФ(e)(УУ3)л!Heading 1 !лзз ааФ ФФФб#XЯОІ P}7ћXP#бллй йл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йа xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc460144400Ї§ЏўўўўЏ§Ї_Toc453922432Ї§ЏўўўўЏ§Ї_Toc453922432Ї§ЏўўўўЏ§Ї_Toc453922581Ї§ЏўўўўЏ§Ї_Toc453922581Ї§ЏўўўўЏ§Ї_Toc454003605Ї§ЏўўўўЏ§Ї_Toc454003605Ї§ЏўўўўЏ§Ї_Toc454026901Ї§ЏўўўўЏ§Ї_Toc454026901Ї§ЏўўўўЏ§Ї_Toc454163251Ї§ЏўўўўЏ§Ї_Toc454163251Ї§ЏўўўўЏ§Ї_Toc454240666Ї§ЏўўўўЏ§Ї_Toc454240666Ї§ЏўўўўЏ§Ї_Toc454357552Ї§ЏўўўўЏ§Ї_Toc454357552Ї§ЏўўўўЏ§Ї_Toc456170667Ї§ЏўўўўЏ§Ї_Toc456170667Ї§ЏўўўўЏ§Ї_Toc456674478Ї§ЏўўўўЏ§Ї_Toc456674478Ї§ЏўўўўЏ§Ї_Toc458418531Ї§ЏўўўўЏ§Ї_Toc458418531Ї§ЏўўўўЏ§Ї_Toc458419298Ї§ЏўўўўЏ§Ї_Toc458419298Ї§ЏўўўўЏ§Ї_Toc460144401Ї§ЏўўOverviewўўЏ§Ї_Toc460144401Ї§Џўўл! Heading 2 !лзз Ф Фб#XЯОІ P}7ћXP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe federal universal service support mechanisms are designed to provide appropriate incentives for the deployment of facilities capable of providing the supported services and the promotion of increased subscribership. This system depends upon the complex interrelationship between federal mechanisms and state actions. For these reasons, we rely on the input of the Joint Board in making our decisions. In general, we are confident that the new forwardЉlooking highЉcost support mechanism described in the УУThirteenth Order on ReconsiderationФФ will provide appropriate incentives for carriers to provide supported services to all Americans who need them. Nonetheless, we are concerned that certain areas of the nation remain unserved because of extraordinarily highЉcosts, lowЉincomes, or any other factors identified above in section II.C above, that would inhibit service. In this section, we discuss a specific statutory provision, section 214(e)(3) of the Act, that may allow the Commission to accelerate the deployment of facilities and the provision of service in unserved areas by ordering carriers to serve those areas. ўўЏ§Ї_Toc453922433Ї§ЏўўўўЏ§Ї_Toc453922433Ї§ЏўўўўЏ§Ї_Toc453922582Ї§ЏўўўўЏ§Ї_Toc453922582Ї§ЏўўўўЏ§Ї_Toc454003606Ї§ЏўўўўЏ§Ї_Toc454003606Ї§ЏўўўўЏ§Ї_Toc454026902Ї§ЏўўўўЏ§Ї_Toc454026902Ї§ЏўўўўЏ§Ї_Toc454163252Ї§ЏўўўўЏ§Ї_Toc454163252Ї§ЏўўўўЏ§Ї_Toc454240667Ї§ЏўўўўЏ§Ї_Toc454240667Ї§ЏўўўўЏ§Ї_Toc454357553Ї§ЏўўўўЏ§Ї_Toc454357553Ї§ЏўўўўЏ§Ї_Ref455545568Ї§Џўўл Para# л б#XЯОІ P}7ћXP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССSection 214(e)(3) of the Act establishes that, in certain instances, the Commission or state commissions may order a common carrier to provide the services supported by universal service in unserved areas. Due to the lack of information in the record, and at the Joint BoardРРs recommendation, the Commission decided in the May 8, 1997 УУFirst Report and OrderФФ not to adopt particular rules to implement this provision at that time.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЪЋџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССУУFirst Report and Order,ФФ 12 FCC Rcd at 8885Љ8886. The Commission encouraged state commissions to file with the Common Carrier Bureau reports detailing the status of unserved areas in their states. УУSee, e.g, ФФLetter from Diane Wells, Minnesota Public Utilities Commission, to Valerie Yates, FCC (dated June 18, 1999) (enclosing information regarding a petition that the Minnesota Public Utilities Commission is currently processing concerning Р Рunassigned territoryРР in Minnesota). УУSee alsoФФ УУFirst Recommended DecisionФФ, 12 FCC Rcd at 184.б#XNє\  P}XP#бй d йЪж As part of our current efforts to promote the deployment of service in unserved areas, insular and tribal lands, we conclude that it is time to establish a framework for conducting proceedings pursuant to section 214(e)(3). Accordingly, we seek comment, as described below, regarding the implementation of this provision. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССSection 214(e)(3) provides that:л Para# л б#XNє\  P}XP#блллBlock Text ла АА` ` аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааб#XNє\  P}XP#бллл"Block Text "л а ` ` АА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блллBlock Text ла АА` ` аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааб#XNє\  P}XP#бллif no common carrier will provide the services that are supported by Federal universal service support mechanisms under section 254(c) to an unserved community or any portion thereof that requests such service, the Commission, with respect to interstate services or an area served by a common carrier to which paragraph (6) applies,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжœЌџџааб#XNє\  P}XP#ба ` ` xА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` аалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йа xААА алFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ 47 U.S.C. РР214(e)(6) (authorizing the Commission to designate a common carrier that is not subject to the jurisdiction of a state commission as an eligible telecommunications carrier). УУSee alsoФФ discussion at section IV, above.б#XNє\  P}XP#бй d йœж or a State commission, with respect to intrastate services, shall determine which common carrier or carriers are best able to provide such service for that unserved community or portion thereof. Any carrier or carriers ordered to provide such service shall meet the requirements of paragraph (1) and shall be designated as an eligible telecommunications carrier for that community or portion thereof.л"Block Text "л а АААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блллBlock Text ла АА` ` аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааб#XNє\  P}XP#бллл"Block Text "л а ` ` АА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блллBlock Text ла АА` ` аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааб#XNє\  P}XP#блла ` ` АА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааThe legislative history for this provision states that section 214(e)(3) Р Рmakes explicit the implicit authority of the CommissionРР to order a common carrier to provide services supported by the universal service support mechanisms.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжю­џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССS. Rep. No. 230, 104th Cong., 2d Sess. 131, at 141 (1996) (Joint Explanatory Statement).б#XNє\  P}XP#бй d йюж л"Block Text "л а xААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Ref455545568Ї§ЏўўўўЏ§Ї_Toc456674481Ї§ЏўўўўЏ§Ї_Toc456674481Ї§ЏўўўўЏ§Ї_Toc454240671Ї§ЏўўўўЏ§Ї_Toc454240671Ї§ЏўўўўЏ§Ї_Toc454357529Ї§ЏўўўўЏ§Ї_Toc454357529Ї§ЏўўўўЏ§Ї_Ref454536362Ї§ЏўўўўЏ§Ї_Ref454536362Ї§ЏўўўўЏ§Ї_Ref455545972Ї§ЏўўўўЏ§Ї_Ref455545972Ї§ЏўўўўЏ§Ї_Toc456170650Ї§ЏўўўўЏ§Ї_Toc456170650Ї§ЏўўўўЏ§Ї_Toc456674479Ї§ЏўўўўЏ§Ї_Toc456674479Ї§ЏўўўўЏ§Ї_Toc458418532Ї§ЏўўўўЏ§Ї_Toc458418532Ї§ЏўўўўЏ§Ї_Toc458419299Ї§ЏўўўўЏ§Ї_Toc458419299Ї§ЏўўўўЏ§Ї_Toc460144402Ї§ЏўўDefining Р РUnserved AreaРРўўЏ§Ї_Toc460144402Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Ref455546166Ї§ЏўўIn order to determine whether an allegedly unserved community is eligible for relief pursuant to section 214(e)(3),лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЏЎџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР 214(e)(3).б#XNє\  P}XP#бй d йЏж we must first decide whether the area at issue is unserved. Only after making this initial determination can we proceed with the rest of the analysis required by section 214(e)(3). We propose defining an unserved area ўўЏ§Ї_Ref455546166Ї§ЏўўўўЏ§Ї_Hlt454536384Ї§Џўўas Р Рany area in which facilities would need to be deployed in order for its residents to receive each of the services designated for support by the universal service support mechanisms.РР In the УУFirst Report and Order,ФФ we identified the services that would be supported by universal service support mechanisms as: singleЉparty service; voice grade access to the public switched network; DTMF signaling or its functional equivalent; access to emergency services; access to operator services; access to interexchange service; access to directory assistance; and toll limitation services for qualifying lowЉincome consumers.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжШЏџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУFirst Report and Order, ФФ12 FCC Rcd. at 8809.б#XNє\  P}XP#бй d йШж These services were identified based on the statutory directive embodied in section 254(c)(1)(A)Љ(D), requiring the Joint Board and the Commission to "consider the extent to which ... telecommunications services" included in the definition of universal service: (1) are essential to education, public health, or public safety; (2) have, through the operation of market choices by customers, been subscribed to by a substantial majority of residential customers; (3) are being deployed in public telecommunications networks by telecommunications carriers; and (4) are consistent with the public interest, convenience and necessity.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЖАџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР 254(c)(1)(A)Љ(D).б#XNє\  P}XP#бй d йЖжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe proposed definition is based on whether facilities would need to be deployed to provide the supported services to distinguish unserved areas from areas in which a large percentage of the population does not subscribe to available services. This definition is intended to help further our statutory mandate to promote the availability of services supported by federal universal service support mechanisms.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллўўЏ§Ї_Hlt454536384Ї§ЏўўўўЏ§Ї_Ref456170028Ї§ЏўўўўЏ§Ї_Ref456170028Ї§ЏўўўўЏ§Ї_Hlt457723690Ї§Џўўв X0УУФФX0УУФФ вжЈБџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР254.б#XNє\  P}XP#бй d йЈж ўўЏ§Ї_Hlt457723690Ї§ЏўўўўЏ§Ї_Ref456170028Ї§ЏўўўўЏ§Ї_Ref456170028Ї§ЏўўўўЏ§Ї_Hlt457723690Ї§Џўў We recognize that this definition may result in certain areas being deemed unserved, even though those areas are receiving some level of service that includes less than all of the services designated for support by the universal service support mechanisms. We also recognize that this definition may result in the existence of relatively small unserved areas within larger areas that are currently receiving service. We seek comment on whether this definition will enable us to appropriately target our efforts to those areas that do not receive all of the services supported by federal universal service support mechanisms. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe emphasize, however, that determining whether a particular area meets the definition of unserved area is only the beginning of the analysis under section 214(e)(3). To obtain relief pursuant to section 214(e)(3), each of the steps discussed below must be followed. We seek comment on this analysis and we invite commenters to propose alternative definitions. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 2 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Hlt457723690Ї§ЏўўўўЏ§Ї_Toc458418533Ї§ЏўўўўЏ§Ї_Toc458418533Ї§ЏўўўўЏ§Ї_Toc458419300Ї§ЏўўўўЏ§Ї_Toc458419300Ї§ЏўўўўЏ§Ї_Toc460144403Ї§ЏўўDetermining When a Community is Unservedл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe language Р Рor any portion thereofРР in section 214(e)(3) suggests that we are not meant to impose minimum size requirements on the number of potential subscribers needed to invoke the authority of section 214(e)(3). We seek comment on whether the language should be interpreted differently or suggests a particular definition. ўўЏ§Ї_Toc460144403Ї§ЏўўўўЏ§Ї_Toc454240672Ї§Џўўл Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 2 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc454240672Ї§ЏўўўўЏ§Ї_Toc456674482Ї§ЏўўўўЏ§Ї_Toc456674482Ї§ЏўўўўЏ§Ї_Toc458418534Ї§ЏўўўўЏ§Ї_Toc458418534Ї§ЏўўўўЏ§Ї_Toc458419301Ї§ЏўўўўЏ§Ї_Toc458419301Ї§ЏўўўўЏ§Ї_Toc460144404Ї§ЏўўDetermining When No Common Carrier Will Provide ServiceўўЏ§Ї_Toc460144404Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССBy its terms, the relief afforded in section 214(e)(3) is not triggered until a determination is made that Р Рno common carrier will provideРР the services supported by the federal universal service support mechanisms. Therefore, we seek comment on the meaning of the phrase Р Рno common carrier will provideРР the supported services.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAs an initial matter, section 214(e)(3) does not specify whether the request for service must be received from members of the unserved community or whether state, local, or tribal authorities must make an official request for service from the carrier on behalf of the unserved members of the community. We tentatively conclude that limitations on who may issue the request are not warranted by the terms of the statute or the goals it seeks to achieve. We seek comment on this tentative conclusion.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe tentatively conclude that the language Р Рno common carrier will provideРР the services supported by the federal universal service support mechanisms means something more than no common carrier is actually providing the supported services. We seek comment on how we can determine that no common carrier is willing to provide the supported services. We seek comment on which common carriers must be asked in order to reach the conclusion that no common carrier will provide the service. We seek comment on how a satellite services provider should be treated for this issue, given that they can potentially provide service to these unserved areas. We also seek comment on whether the reasons for the common carrierРРs refusal to provide service are relevant to a determination that the area is unserved. For example, what if the refusal to provide service is based on the poor credit histories of the individuals requesting service or an existing overdue debt? Given the extremely low annual incomes, on average, on tribal lands, it seems possible that inadequate credit histories of the potential customers may cause a carrier to bўўЏ§Ї_Toc454240673Ї§Џўўe unwilling to provide service.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 2 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc454240673Ї§ЏўўўўЏ§Ї_Toc456674483Ї§ЏўўўўЏ§Ї_Toc456674483Ї§ЏўўўўЏ§Ї_Toc458418535Ї§ЏўўўўЏ§Ї_Toc458418535Ї§ЏўўўўЏ§Ї_Toc458419302Ї§ЏўўўўЏ§Ї_Toc458419302Ї§ЏўўўўЏ§Ї_Toc460144405Ї§ЏўўIdentifying Carrier or Carriers Best Able to Serve Unserved AreasўўЏ§Ї_Toc460144405Ї§Џўўл! Heading 2 !лззŒФ Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССSection 214(e)(3) authorizes the Commission, with respect to interstate service or an areas served by a carrier to which section 214(e)(6) applies, and state commissions, with respect to intrastate service, to determine which carrier or carriers are best able to provide service to the requesting, unserved community and order that carrier or carriers to provide service. We seek comment on the relative roles that the Commission and the states should play in determining which carriers are best able to provide the supported services in unserved areas, including any coordination that should occur in making this determination.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether the Commission is authorized to and whether it should establish national guidelines by which states may or must make this determination, when they have jurisdiction to do so. We recognize that the selection of the carrier to serve some unserved areas pursuant to section (e)(3) of the Act is to be made by state commissions. We seek comment on whether a consistent, national approach is necessary to further the universal service goals of the Act or to provide certainty to carriers regarding the possible application of this important provision. We seek comment on whether, in situations where the state has jurisdiction to designate eligible telecommunications carriers, all aspects of this decision should be left to the states because states have more familiarity with the areas in question. We also seek comment on the role of tribal authorities with respect to the CommissionРРs determination of the carrier or carriers best able to serve unserved, tribal lands. We also seek comment to determine whether the CommissionРРs obligation to identify and order a carrier to provide service in tribal lands should be affected by the interests of the tribal authorities.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССOne approach for making a determination pursuant to section 214(e)(3) would be to conduct a factЉintensive inquiry, polling common carriers serving nearby or surrounding areas to determine where existing facilities are deployed, to estimate the costs for each carrier to provide the supported services, and to consider other possible factors that may be relevant to the conclusion that a carrier is Р Рbest able.РР We tentatively conclude, however, that our preferred approach would be to adopt a competitive bidding mechanism for identifying the carrier or carriers best able to provide service in unserved areas for which the Commission has authority to order carriers to provide service. We seek comment on the use of a competitive bidding mechanism in section V.E.2, below. We seek comment on whether it is within our authority to require states to adopt a competitive bidding mechanism to determine which carrier or carriers will be ordered to provide intrastate service in unserved areas to which section 214(e)(6) does not apply. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Ref454545863Ї§ЏўўIf the competitive bidding mechanism does not give rise to a carrier willing and able to provide the supported services in the unserved area at a reasonable cost, we seek comment on whether the Commission should then initiate an inquiry to determine the carrier or carriers bestЉable to provide service to the area. We seek comment on whether the following factors would be relevant in making that determination: (1) whether the area falls within the designated service area of an existing carrier; (2) the extent to which a carrier has deployed facilities capable of providing supported services in the surrounding area; (3) the cost for that carrier to build facilities capable of providing the supported services; (4) the quality of services that would be provided; (5) the financial strength of the carrier; (6) the proportionate impact serving the area would have on the number of lines and the geographic area served by the carrier; (7) the amount of time required for the carrier to deploy facilities; and (8) a carrierРРs status as either an incumbent LEC or a competitive eligible telecommunications carrier. We seek comment on any other factors that may be relevant. We also seek comment on whether our inquiry must be limited to incumbent LECs and competitive eligible telecommunications carriers or whether we may also include other competitive LECs, interexchange carriers, terrestrial wireless or satellite service providers, or providers of cable or electric services that would be capable of providing the supported services to the unserved area. We seek comment on whether to exclude certain carriers from consideration, for example, carriers that are considered small entities for purposes of the Regulatory Flexibility Act.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжкВџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС5 U.S.C. РР 601 УУet. seq., ФФamended by the Contract with America Advancement Act of 1996, Pub. L. No. 104Љ121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA). УУSeeФФ section VIII.C for the Initial Regulatory Flexibility Act Analysis.б#XNє\  P}XP#бй d йкж Finally, we seek comment on whether the preferences of the unserved community for a particular carrier or technology should be considered in making a determination of which carrier is best able to provide service to the area.л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Ref454545863Ї§ЏўўўўЏ§Ї_Toc453922442Ї§ЏўўўўЏ§Ї_Toc453922442Ї§ЏўўўўЏ§Ї_Toc453922591Ї§ЏўўўўЏ§Ї_Toc453922591Ї§ЏўўўўЏ§Ї_Toc454003615Ї§ЏўўўўЏ§Ї_Toc454003615Ї§ЏўўўўЏ§Ї_Toc454026911Ї§ЏўўўўЏ§Ї_Toc454026911Ї§ЏўўўўЏ§Ї_Toc454163261Ї§ЏўўўўЏ§Ї_Toc454163261Ї§ЏўўўўЏ§Ї_Toc454240679Ї§ЏўўўўЏ§Ї_Toc454240679Ї§ЏўўўўЏ§Ї_Toc456674486Ї§ЏўўўўЏ§Ї_Toc456674486Ї§ЏўўўўЏ§Ї_Toc458418536Ї§ЏўўBackground on Competitive BiddingўўЏ§Ї_Toc458418536Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn the Notice of Proposed Rulemaking issued to implement the universal service provisions of the 1996 Act,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжmГџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г FederalЉState Joint Board on Universal Service, УУNotice of Proposed Rulemaking and Order Establishing a Joint BoardФФ, CC Docket No. 96Љ45, 11 FCC Rcd 18092 (1996) (УУMay 1996 NoticeФФ).б#XNє\  P}XP#бй d йг dd гmж the Commission sought comment on how to provide universal service support to rural, insular, and highЉcost areas, generally,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжпДџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУMay 1996 NoticeФФ, 11 FCC Rcd at 18101Љ18116.б#XNє\  P}XP#бй d йг dd гпж and asked whether competitive bidding could be used to set the level of support.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжйЕџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУMay 1996 NoticeФФ, 11 FCC Rcd at 18111.б#XNє\  P}XP#бй d йг dd гйж The Commission sought comment on the use of a competitive bidding system in which eligible carriers offering all of the services supported by universal service mechanisms would bid on the level of assistance per line that they would need to provide such services at affordable rates, consistent with the Act. The Commission explained that such an approach would attempt to harness competitive forces to minimize the cost of universal service. In a July 1996 Public Notice, the Common Carrier Bureau sought further comment on a competitive bidding system.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжtЖџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Public Notice, Common Carrier Bureau Seeks Further Comment on Specific Questions in Universal Service Notice of Proposed Rulemaking, DA 96Љ1078 (rel. July 3, 1996) (Further Comment Public Notice). б#XNє\  P}XP#бй d йг dd гtж In addition, Commission staff conducted УУex parteФФ meetings relating to competitive bidding, including a March 19, 1997 forum on universal service auctions.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжXЗџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г We also note that the California Public Utilities Commission conducted a workshop on May 8Љ9, 1997, to develop auction mechanism rules for the California HighЉcost fund. б#XNє\  P}XP#бй d йг dd гXжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Joint Board focused its recommendations regarding support for rural, insular, and highЉcost areas on a mechanism for estimating the forwardЉlooking economic cost of service for such areas. The Joint Board concluded that:л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#блла xА` ` аг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааб#XNє\  P}XP#б[w]hile the record in this proceeding persuades us that a properly structured competitive bidding system could have significant advantages over other mechanisms used to determine the level of universal service support for high cost areas, we find that the information contained in the record does not support adoption of any particular competitive bidding proposal at this time.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжђИџџааб#XNє\  P}XP#ба ` ` xА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` аалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йа xААА алFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Recommended DecisionФФ, 12 FCC Rcd at 265.б#XNє\  P}XP#бй d йг dd гђжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#блла АААА аг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Joint Board cited the potential advantages of competitive bidding including the use of marketplace dynamics to establish the level of universal service support for any given area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжтЙџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Recommended DecisionФФ, 12 FCC Rcd at 266.б#XNє\  P}XP#бй d йг dd гтж The Joint Board noted that "[a] properly designed competitive bidding system would reduce the role of regulators in determining the costs of providing universal service once an area becomes subject to bidding."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжтКџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Recommended DecisionФФ, 12 FCC Rcd at 266.б#XNє\  P}XP#бй d йг dd гтж The Joint Board also recognized that a properly structured competitive bidding system could reduce the amount of support needed for universal service by reflecting the lower costs of more efficient carriers and new technologies that would be used to set the level of universal service support for the entire area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжтЛџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Recommended DecisionФФ, 12 FCC Rcd at 266.б#XNє\  P}XP#бй d йг dd гтжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Joint Board found that sections 254 and 214(e) of the ActлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжДМџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РРРР 214(e), 254б#XNє\  P}XP#бй d йДж and the record developed in this proceeding provide some guidance as to how a competitive bidding system should be structured.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжтНџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Recommended DecisionФФ, 12 FCC Rcd at 267.б#XNє\  P}XP#бй d йг dd гтж The Joint Board recommended that any carrier that meets the eligibility criteria for universal service support should be permitted to participate in the auction and that any competitive bidding system should be competitively neutral, favoring neither incumbents nor new entrants.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжтОџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Recommended DecisionФФ, 12 FCC Rcd at 267.б#XNє\  P}XP#бй d йг dd гтж It also recommended that the system adopted should minimize the ability of bidders to collude,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжтПџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Recommended DecisionФФ, 12 FCC Rcd at 267.б#XNє\  P}XP#бй d йг dd гтж and suggested that the system should either prescribe a minimum number of bidders or be designed to be effective for any number of bidders.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжтРџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Recommended DecisionФФ, 12 FCC Rcd at 268.б#XNє\  P}XP#бй d йг dd гтж Finally, the Joint Board recommended that, in determining the geographic area that carriers would bid to serve, any final proposed bidding plan use areas sized to promote competition and target universal service support efficiently.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжтСџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Recommended DecisionФФ, 12 FCC Rcd at 268.б#XNє\  P}XP#бй d йг dd гтжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССOn May 8, 1997, the Commission released its УУFirst Report and OrderФФ. In the УУFirst Report and OrderФФ, the Commission adopted most of the recommendations of the Joint Board including "a specific timetable for implementation of federal universal service support to rural, insular, and high cost areas."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжПТџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУFirst Report and Order,ФФ 12 FCC Rcd at 8888.б#XNє\  P}XP#бй d йПж In the УУFirst Report and OrderФФ, the Commission found that "a compelling reason to use competitive bidding is its potential as a marketЉbased approach to determining universal service support. . . ."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжрУџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Report and Order, ФФ12 FCC Rcd at 8948. б#XNє\  P}XP#бй d йг dd грж The Commission also found that "a properly structured competitive bidding system would . . . reduce the amount of support needed for universal service."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжпФџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Report and OrderФФ, 12 FCC Rcd at 8948.б#XNє\  P}XP#бй d йг dd гпж By reducing the amount of support provided for universal service, the Commission found that competitive bidding may advance the goal of affordable rates because carriers would be able to passЉthrough any reductions to their subscribers. The Commission concluded, however, that further proceedings were needed to examine issues related to the use of competitive bidding to set universal service support levels for rural, insular, and highЉcost areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжцХџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb гССУУFirst Report and OrderФФ, 12 FCC Rcd at 8951.б#XNє\  P}XP#бй d йг dd гцж Specifically, the Commission found that the record did not contain adequate discussion or analysis to enable us either to define a competitive bidding mechanism that would be consistent with the requirements of sections 214(e) and 254, or to adopt specific procedures for implementing a lawful competitive bidding system.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжыЦџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb гССУУFirst Report and OrderФФ, 12 FCC Rcd at 8949Љ8951.б#XNє\  P}XP#бй d йг dd гыж л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Ref457803866Ї§ЏўўўўЏ§Ї_Ref457803866Ї§ЏўўўўЏ§Ї_Toc458418537Ї§ЏўўCompetitive Bidding Proposalл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe tentatively conclude that we should adopt a competitive bidding mechanism to identify the carrier or carriers best able to provide the supported services in unserved tribal lands and to set the level of support provided for serving the area. We are hopeful that we may be able to design a competitive bidding mechanism that will generate public awareness of the needs of a particular area for service and elicit proposals from one or more carriers that could be compared before determining which carrier or carriers should be designated as an eligible telecommunications carrier for the area. We seek comment on this proposal. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether the possibility that a carrier will be ordered to provide service pursuant to section 214(e)(3) will provide incentives for carriers to participate in the competitive bidding mechanism in order to be able to set the terms on which they will provide service. We seek comment on whether the competitive bidding mechanism could bring unserved areas to the attention of carriers previously unaware of the need for telecommunications services in those areas and thus identify carriers that would be willing to provide service to the area for a support amount equal to or lower than the amount that would be provided under existing federal universal service support mechanisms. In addition, we seek comment on possible negative incentives and distortions that may be created by using a competitive bidding mechanism. For example, we seek comment on whether a competitive bidding approach will likely lead carriers to provide the lowestЉcost, lowestЉquality service that meets the definition of supported services, unfairly depriving residents of higher quality or advanced services.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe also seek comment on whether the Commission should conduct a trial to determine whether a competitive bidding mechanism is the most efficient means of identifying the carrier or carriers best able to provide the supported services in unserved areas. We seek comment on how large a service area would be appropriate for such a trial. We seek comment on whether the Commission should solicit volunteers from Indian tribes that currently have large unserved areas. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#блHeading 4 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџИ ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАИ ааиƒиССParticipantsл!Heading 4 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла И ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on the possible participants in a competitive bidding proceeding. Section 214(e)(3) states that any carrier ordered to provide service pursuant to this section shall meet the requirements necessary and be designated an eligible telecommunications carrier for the unserved area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЇЧџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ 47 U.S.C. РР214(e)(1). To be designated as an eligible telecommunications carrier, a carrier must: (A) offer the services that are supported by Federal universal service support mechanisms under section 254(c), either using its own facilities or a combination of its own facilities and resale of another carrier's services (including the services offered by another eligible telecommunications carrier); and (B) advertise the availability of such services and the charges therefor using media of general distribution.б#XNє\  P}XP#бй d йЇж We seek comment on whether a carrier must first be designated an eligible telecommunications carrier for the area prior to participating in the competitive bidding mechanism. We seek comment on whether any carrier that can demonstrate that it can meet the requirements of section 214(e)(1) may participate in the competitive bidding mechanism. We seek comment on what kind of showing is necessary to demonstrate that a carrier can meet the requirements of section 214(e)(1). We seek comment on whether terrestrial wireless or satellite providers will be able to participate in the competitive bidding mechanism. We also seek comment on the number of bidders we should anticipate for auctions in the universal service context, and the extent to which we should consider that number in deciding the type of auction that should be used, as discussed below.л Para# л б#XNє\  P}XP#блллHeading 4 лб#XNє\  P}XP#бУ Уззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџИ ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАИ ааиƒиССўўЏ§Ї_Toc458418537Ї§ЏўўўўЏ§Ї_Hlt454545922Ї§ЏўўNumber of Winnersл!Heading 4 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла И ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whetherлFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФ the characteristics of the unserved л#Footnote Ref#лб#XNє\  P}XP#бллtribal lands лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФmay be such that л#Footnote Ref#лб#XNє\  P}XP#бллit is not economically practical to support more thanлFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФ one provider л#Footnote Ref#лб#XNє\  P}XP#бллto лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФserveл#Footnote Ref#лб#XNє\  P}XP#блл unserved, tribal lands. To the extent that supporting a single provider is more economical, permitting лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФmultiple providers to receive л#Footnote Ref#лб#XNє\  P}XP#бллfederalлFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФ universal service supportл#Footnote Ref#лб#XNє\  P}XP#блл may not be in the public interest. лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФIn addition, л#Footnote Ref#лб#XNє\  P}XP#бллif all carriers were entitled to receive support at the level determined in the competitive bidding auctions, bidders would have no incentive to bid below the opening level; that is, competitive bidding would not reveal the minimum amount of support necessary to provide service to the area. For these reasons, wлFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФe propose that qualified л#Footnote Ref#лб#XNє\  P}XP#бллeligible telecommunications carriers лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФbid to secure an exclusive right to л#Footnote Ref#лб#XNє\  P}XP#бллreceive universal service support forлFootnote Refлб#єAє\  P}єP#бУУллФФ л#Footnote Ref#лб#XNє\  P}XP#бллserving лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФthe unserved tribal areaл#Footnote Ref#лб#XNє\  P}XP#блл. That is, the winning bidder would be the only carrier designated as an eligible telecommunications carrier for providing the supported services to the unserved, tribal lands subject to competitive bidding.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether the Commission has the authority to and whether we should try to attract carriers by agreeing to designate only one carrier to serve the unserved, tribal land or permitting only one carrier to receive federal universal service support for serving the area. We seek comment on whether a decision to limit support to a single carrier is consistent with the universal service provisions and proЉcompetitive goals of the Act. We observe that, in the case of an area served by a rural carrier, the Commission Р РmayРР designate more than one eligible telecommunications carrier but must make a specific showing that an additional eligible telecommunications carrier would serve the public interest.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжGШџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР 214(e)(6). This discussion is limited to situations where the Commission has authority to designate eligible telecommunications carriers, including tribal lands.б#XNє\  P}XP#бй d йGж With respect to all other carriers, the Commission Р РshallРР designate more than one common carrier as an eligible telecommunications carrier. We seek comment on whether these provisions apply with respect to an unserved area. We seek comment on whether the statutory language that the Commission Р Рshall determine which carrier or carriers are best able to provide such serviceРР indicates that the Commission may determine that a single carrier shall be designated. Finally, we seek comment concerning the ability of bidders to accurately estimate the possible future challenges from other carriers for the more profitable customers in the previously unserved, tribal lands.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAs an alternative to a single winner, we consider the possibility of supporting two or more winning bidders. We generally believe that customers benefit most when multiple providers are available, because competition leads to lower prices and provides an alternative where service quality is unsatisfactory. Supporting two winning bidders means that a second carrier would be able to compete vigorously with the lowest bidder. We seek comment on whether to use the competitive bidding mechanism to identify a level of support which would be provided for serving the area and to allow any carrier with a bid within a specific range of the winning bidder,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжлЩџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССGTE proposes such a plan for multiple winners. УУSeeФФ Appendix D.б#XNє\  P}XP#бй d йлж who also satisfies the requirements of section 214(e)(1) of the Act, to receive that level of support for providing service to the area. We seek comment on whether the possibility of having multiple carriers receive support for these previously unserved areas would substantially diminish or even eliminate any incentives carrier might have to participate in competitive bidding. We seek comment on whether providing support sufficient to allow competing carriers to build the necessary infrastructure would generate customer benefits over the longЉterm that would offset the additional cost associated with supporting two carriers. In making this determination, we must consider the duration of the service term and the rate of change in network technology. For example, if technological change were so rapid that both the new entrant and incumbent carrier would need to install and recover the cost of new facilities for each contract term, the benefits of creating competing carriers would be significantly reduced. We seek comment on these issues. л Para# л б#XNє\  P}XP#блллHeading 4 лб#XNє\  P}XP#бУ Уззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџИ ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАИ ааиƒиССTerm of Exclusivity Periodл!Heading 4 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла И ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIf the Commission determines that a bidder should win the exclusive right to federal universal service support, we would seek to establish an exclusivity period that is of an adequate length to provide incentives for carriers to deploy facilities yet does not result in unnecessary support being provided. We seek comment on the appropriate duration of any exclusivity period. AлFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФfter л#Footnote Ref#лб#XNє\  P}XP#бллthe exclusivity period has ended, лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФwe л#Footnote Ref#лб#XNє\  P}XP#бллcouлFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФldл#Footnote Ref#лб#XNє\  P}XP#блл choose toлFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФ reЉauction the service obligation and consider multiple providers if л#Footnote Ref#лб#XNє\  P}XP#бллthe costs of providing service decreased or лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФmarket conditions improved so that multiple providers became practical. л#Footnote Ref#лб#XNє\  P}XP#бллWe anticipate that that the length of the exclusivity period will affect the bids for monthly support levels. In addition, the length of the exclusivity period will affect the average administrative and transaction costs for conducting the auction. Granting exclusivity periods that are too short could be harmful because the winning carrier is likely to need time to establish its network, and to amortize its investments. In addition, more frequent auctions entail increased administrative costs. Granting periods that are too long, however, also could be harmful. Technological advances over time can create more efficient means of providing communications, which would enable firms to offer service at a lower cost. To the extent that the winning bidder is shielded from competition during the exclusivity period, the benefits of adopting a more efficient technology will accrue to the carrier, rather than the customer.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЪџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССAllowing the benefits to accrue to the carrier may actually provide valuable incentives that encourage participation in the auction.б#XNє\  P}XP#бй d йж In addition, with longer contract terms, the carriersРР prediction of their costs at later stages in the contract becomes more speculative, which could translate into higher bids in the auction. We seek comment on this analysis and the appropriate length of the exclusivity period. We suggest that commenters review the competitive bidding proposals and mechanisms summarized in Appendix D for examples that may assist in determining the length of the exclusivity requirement.л Para# л б#XNє\  P}XP#блллHeading 4 лб#XNє\  P}XP#бУ Уззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџИ ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАИ ааиƒиССBidding Processл!Heading 4 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла И ААА аг d глFootnote Refлб#єAє\  P}єP#бУУллФФвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X гб#XNє\  P}XP#би€иССWe л#Footnote Ref#лб#XNє\  P}XP#бллseek comment on whether to use лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФa singleЉround, sealed bid processл#Footnote Ref#лб#XNє\  P}XP#блл or a descending, multiЉround auction.лFootnote Refлб#єAє\  P}єP#бУУлл л#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжH Ыџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССFor examples of procurement auctions where the low bid wins, sУУeeФФ ўўВ§Њhttp://www.netbidding.com/netbidding/html/netbidding.htmlЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.netbidding.com/netbidding/html/netbidding.htmlл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў (businessЉtoЉbusiness procurement) and ўўВ§Њhttp://www.econ.ag.gov/epubs/pdf/aer766/index.htmЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.econ.ag.gov/epubs/pdf/aer766/index.htmл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў (USDA procurements).б#XNє\  P}XP#бй d йH ж лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФEach bidder would submit an amount of support л#Footnote Ref#лб#XNє\  P}XP#бллnecessary лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФper line given our universal service technical specifications. л#Footnote Ref#лб#XNє\  P}XP#бллWe observe that the Commission has successfully implemented multiЉround auctions in other contexts.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжвЬџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССTo date, the Commission has conducted 23 multiЉround auctions for spectrum licenses in a variety of wireless services. For information on past Commission spectrum auctions, УУseeФФ ўўВ§Њhttp://www.fcc.gov/wtb/auctionsЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.fcc.gov/wtb/auctionsл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў. б#XNє\  P}XP#бй d йвж We seek comment on whether a descending multiЉround bidding system would be preferable to a singleЉround sealed bid auction.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжгЭџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee ФФKellyЉSteinberg proposal, summarized in Appendix D.б#XNє\  P}XP#бй d йгжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe also seek comment on how to establish the reservation price Р!Р the highest bid that would qualify for support Р!Р for the competitive bidding mechanism. One option would be to use the new highЉcost mechanism лFootnote Refлб#єAє\  P}єP#бУУллб#XNє\  P}XP#бФФto л#Footnote Ref#лб#XNє\  P}XP#бллestimate the amount of support that would be available for providing the supported services in the unserved, tribal area and set that as the reservation price. We seek comment on what incentives carriers would have, if any, to bid an amount lower than the reservation price determined by the model. Alternatively, we seek comment on whether we should set a reservation price that is some percentage above the support amount determined under the new highЉcost mechanisms. We seek comment on whether a rational percentage can be identified. We also seek comment on whether to conduct an auction without establishing a particular reservation price or specifically identifying the amount that would be provided under the new highЉcost mechanism in an effort to determine the amount of support each carrier believes is necessary. We seek comment on whether, if we were to proceed in this manner, the Commission should reserve the right to conclude that the competitive bidding mechanism was not successful and to proceed to the factЉbased inquiry, described in paragraph 96 above.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#блHeading 4 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџИ ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАИ ааиƒиССSupport Amountл!Heading 4 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла И ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССA wellЉdesigned auction should provide incentives for carriers to disclose the minimum amount of support they require, even though this information may be competitively sensitive. We seek comment on how to provide incentives for carriers to reveal the minimum amount of support necessary to provide service to the unserved area. We seek comment on whether we should employ a Р РSecond PriceРР or Р РVickreyРР auction, in which the successful bidder gets support at the level of the lowest bid made by a nonЉsuccessful bidder. In theory, this style of auction appears to induce bidders to reveal their actual costs and would thereby generate the same total support requirements as a first price, sealed bid auction.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжDЮџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССIn a standard, sealedЉbid procurement auction, where the successful bidder receives the amount of the bid, a firm typically shades its bid by not revealing the minimum that it would require to supply the good or service. The firm weighs the benefits of a higher payment if it wins against the reduced probability of winning. For general information about different types of auctions, УУseeФФ Vernon Smith, Р РAuctions,РР in УУThe New Palgrave: Allocation, Information and Markets,ФФ edited by J. Eatwell, M. Milgate, and P. Newman, The MacMillan Press Limited: Hong Kong, 1989. УУSee alsoФФ Paul Milgrom, УУAuctions and Bidding: A Primer,ФФ 3 J. Econ. Persp. 10 (1989). б#XNє\  P}XP#бй d йDж Another factor relevant in setting the support level is whether the federal support provided constitutes the entire amount of subsidy available to the carrier. We tentatively conclude that we would need to establish that the competitive bidding mechanism for unserved areas would be used to determine the entire amount of support to be divided and the relevant share of support would be allocated to the federal and state authorities, in whatever proportion is established for the highЉcost support mechanism in general. We seek comment on this analysis.л Para# л б#XNє\  P}XP#блллHeading 4 лб#XNє\  P}XP#бУ Уззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџИ ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАИ ааиƒиССObligations Assumed by Winning Bidderл!Heading 4 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла И ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe tentatively conclude that, pursuant to section 214(e), a successful bidder must provide the services supported by the universal service support mechanisms to all customers requesting service in the designated area and advertise the availability of such service throughout the service area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжВЯџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР 214(e)(1)(B).б#XNє\  P}XP#бй d йВж We seek comment on this tentative conclusion.л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Hlt454545922Ї§ЏўўўўЏ§Ї_Toc453922444Ї§ЏўўўўЏ§Ї_Toc453922444Ї§ЏўўўўЏ§Ї_Toc453922593Ї§ЏўўўўЏ§Ї_Toc453922593Ї§ЏўўўўЏ§Ї_Toc454003617Ї§ЏўўўўЏ§Ї_Toc454003617Ї§ЏўўўўЏ§Ї_Toc454026913Ї§ЏўўўўЏ§Ї_Toc454026913Ї§ЏўўўўЏ§Ї_Toc454163263Ї§ЏўўўўЏ§Ї_Toc454163263Ї§ЏўўўўЏ§Ї_Toc454240681Ї§ЏўўўўЏ§Ї_Toc454240681Ї§ЏўўўўЏ§Ї_Toc456674488Ї§ЏўўўўЏ§Ї_Toc456674488Ї§ЏўўўўЏ§Ї_Toc458418538Ї§ЏўўOther Proposals and Examples of Competitive BiddingўўЏ§Ї_Toc458418538Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССA number of parties submitted competitive bidding proposals in the universal service docket, the most detailed of which were submitted by GTE,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжКаџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССWe note that there had been a continuing dialogue between GTEРРs economic consultant, Stanford Professor Paul Milgrom, and AmeritechРРs economic consultants, Yale Professors Jeremy Bulow and Barry Nalebuff that led to modifications in the proposals submitted. УУSee, e.g., ex parteФФ summary from Charon Harris, GTE, to William Caton, FCC dated March 31, 1997 (УУGTE March 31 ex parte)ФФ. The most detailed and current description of the GTE proposal is probably the summary submitted by GTE on June 21, 1997 (УУGTE June 21 ex parte)ФФ.б#XNє\  P}XP#бй d йКж consultants to Ameritech,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжќбџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g., ФФLetter from Celia Nogales, Ameritech, to William Caton, FCC, dated May 2, 1997.УУб#XNє\  P}XP#бй d йФФќж and Frank Kelly and Richard Steinberg of Cambridge University, Great Britain.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжювџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССLetter from Richard Steinberg, University of Cambridge, to Evan Kwerel, FCC, dated June 23, 1997 (A Combinatorial Auction with Multiple Winners for COLR, June 9, 1997) (KellyЉSteinberg). УУSee ўўВ§Њhttp://www.statslab.cam.ac.uk/~frank/AUCTION/Њ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.statslab.cam.ac.uk/~frank/AUCTION/л! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў. б#XNє\  P}XP#бй d йФФюж These proposals were designed to determine the carrier or carriers entitled to receive universal service support and the level of support to be provided. In addition, other government agencies have used competitive bidding systems that may have features relevant to the market at issue here. We seek comment on these other competitive bidding proposals, summarized in Appendix D, because aspects of these proposals may be preferable to the competitive bidding approach proposed above. л Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc456674484Ї§ЏўўўўЏ§Ї_Toc456674484Ї§ЏўўўўЏ§Ї_Toc458418539Ї§ЏўўўўЏ§Ї_Toc458418539Ї§ЏўўўўЏ§Ї_Toc458419303Ї§ЏўўўўЏ§Ї_Toc458419303Ї§ЏўўўўЏ§Ї_Toc460144406Ї§ЏўўOrdering Carriers to Provide Serviceл! Heading 2 !лззŒФ Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иСС We seek comment on the ramifications of ordering a carrier to provide service in an unserved area. We tentatively conclude that this requirement entails an obligation to deploy the facilities necessary to provide the services supported by federal universal service support mechanisms, to offer the services to all customers requesting service in the designated area, and to advertise the availability of such service throughout the service area. These requirements are consistent with the language in section 214(e)(3) of the Act, stating that the carrier ordered to provide service shall meet the requirements of section 214(e)(1) of the Act.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжбгџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РРРР 214(e)(3) and 214 (e)(1). Pursuant to section 214(e)(1), to be designated as an eligible telecommunications carrier, a carrier must: (A) offer the services that are supported by Federal universal service support mechanisms under section 254(c), either using its own facilities or a combination of its own facilities and resale of another carrier's services (including the services offered by another eligible telecommunications carrier); and (B) advertise the availability of such services and the charges therefor using media of general distribution.б#XNє\  P}XP#бй d йбж We seek comment on this tentative conclusion.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe also seek comment whether additional measures may be necessary to ensure that the carrier ordered to provide service is able to earn an appropriate return on its investment. For example, a carrier may deploy facilities, advertise the availability of services and offer service to all customers and yet an inadequate number of customers may subscribe to the service, rendering the operation unprofitable. This result may occur due to faulty estimations by the carrier, but it may also be the result of unpredictable demand. Similarly, it is possible that carriers may provide services to all requesting customers, yet the customers might default on their bills. If the carrier is ordered to provide service, to what extent must it retain customers who cannot pay overdue debts or with poor credit records? How will the carrier recover its investment on the facilities deployed to provide service to subscribers who do not pay their bills? We seek comment on these issues, including the appropriate role for the Commission and state commissions to play in addressing these issues.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#блHeading 1 лааб#XNє\  P}XP#бУ УУУззллг Ш гй : йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒви€иўўЏ§Ї_Toc460144406Ї§ЏўўўўЏ§Ї_Toc454357558Ї§ЏўўўўЏ§Ї_Toc454357558Ї§ЏўўўўЏ§Ї_Toc456674489Ї§ЏўўўўЏ§Ї_Toc456674489Ї§ЏўўўўЏ§Ї_Toc458418540Ї§ЏўўўўЏ§Ї_Toc458418540Ї§ЏўўўўЏ§Ї_Toc458419304Ї§ЏўўўўЏ§Ї_Toc458419304Ї§ЏўўўўЏ§Ї_Toc460144407Ї§ЏўўUnderserved AreasўўЏ§Ї_Toc460144407Ї§Џўўл!Heading 1 !лзз ааФ ФФФб#єAє\  P}єP#бллй йл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn this section of the Further Notice, the Commission considers whether additional support for lowЉincome consumers is necessary to promote subscribership in unserved and underserved areas, including tribal and insular areas. ўўЏ§Ї_Toc456170671Ї§Џўўл Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 2 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc456170671Ї§ЏўўўўЏ§Ї_Toc456170672Ї§ЏўўўўЏ§Ї_Toc456170672Ї§ЏўўўўЏ§Ї_Toc454003619Ї§ЏўўўўЏ§Ї_Toc454003619Ї§ЏўўўўЏ§Ї_Toc454026915Ї§ЏўўўўЏ§Ї_Toc454026915Ї§ЏўўўўЏ§Ї_Toc454087439Ї§ЏўўўўЏ§Ї_Toc454087439Ї§ЏўўўўЏ§Ї_Toc454240683Ї§ЏўўўўЏ§Ї_Toc454240683Ї§ЏўўўўЏ§Ї_Toc454357530Ї§ЏўўўўЏ§Ї_Toc454357530Ї§ЏўўўўЏ§Ї_Toc456170651Ї§ЏўўўўЏ§Ї_Toc456170651Ї§ЏўўўўЏ§Ї_Toc456674490Ї§ЏўўўўЏ§Ї_Toc456674490Ї§ЏўўўўЏ§Ї_Toc458418541Ї§ЏўўўўЏ§Ї_Toc458418541Ї§ЏўўўўЏ§Ї_Toc458419305Ї§ЏўўўўЏ§Ї_Toc458419305Ї§ЏўўўўЏ§Ї_Toc460144408Ї§ЏўўDefining Р РUnderserved AreaРРўўЏ§Ї_Toc460144408Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn the УУThirteenth Order on ReconsiderationФФ, the Commission observed that there may be inadequately served areas that are characterized by extremely low penetration, low population density, and high costs.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЬдџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУThirteenth Order on Reconsideration ФФat para. 92.б#XNє\  P}XP#бй d йЬж We seek comment on the need for the Commission to establish a definition of Р Рunderserved areaРР that would be used in targeting supplemental universal service support to those areas. For example, a community may be considered underserved if the penetration rate of the community is significantly below the national average. In addition to the number of supported services available, and the percentage of the population receiving those supported services, there may be other identifying characteristics that describe an underserved area. We seek comment on an appropriate definition for underserved area. For example, we could define underserved area as a geographic area that meets certain statistical benchmarks, УУi.e.ФФ, a penetration rate below a certain percentage, a population density below a certain level, costs of providing supported services above a certain level, etc. We also seek comment on whether there is sufficient, readily available statistical data to make such a definitional approach viable. л Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc456674491Ї§ЏўўўўЏ§Ї_Toc456674491Ї§ЏўўўўЏ§Ї_Toc458418542Ї§ЏўўўўЏ§Ї_Toc458418542Ї§ЏўўўўЏ§Ї_Toc458419306Ї§ЏўўўўЏ§Ї_Toc458419306Ї§ЏўўўўЏ§Ї_Toc460144409Ї§ЏўўExpanding LinkUp to Include FacilitiesЉBased ChargesўўЏ§Ї_Toc460144409Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether increasing federal support to offset initial connection charges may be necessary to increase the success of our universal service support mechanisms in underserved areas, including insular and tribal lands. In the proceeding leading up to the УУSecond Recommended DecisionФФ, the Arizona Corporation Commission (Arizona Commission) submitted a proposal to use a portion of federal support to address the problem of unserved areas and the inability of lowЉincome residents to obtain telecommunications service because they cannot afford to pay the required line extension or construction costs.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжs еџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Proposal of the Arizona Corporation Commission For Distribution of Federal USF Funds to Establish Service to LowЉIncome Customers in Unserved Areas, or in the Alternative, for Amendment of the May 8, 1997 Report and Order to Provide for Federal USF Distribution for This Purpose; (УУreceived ФФApril 28, 1998) (Arizona Proposal). This document is attached as an Appendix to paper copies of this Further Notice (Appendix E). Electronic copies of the Arizona Proposal can be obtained through the CommissionРРs Electronic Comment Filing System: ўўВ§Њhttps://gullfoss.fcc.gov/cgi-bin/ws.exe/prod/ecfs/comsrch.htsЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttps://gullfoss.fcc.gov/cgiЉbin/ws.exe/prod/ecfs/comsrch.htsл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў. г dd гб#XNє\  P}XP#бй d йs ж The Arizona Commission's proposal was not intended to be a comprehensive alternative to the highЉcost fund distribution model, but rather to address a discrete concern related to lowЉincome residents in remote areas. We seek comment on the Arizona Commission's proposal and the extent to which the problem identified by the Arizona Commission is widespread. In particular, we seek further data on the cost of line extensions in rural areas and regarding the number of residents that are deprived of telecommunications services because of high line extension or construction costs and areas in which this problem is acute. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Joint Board recognized that investments in line extensions historically have been an issue addressed by the states through intrastate proceedings that establish reasonable rates for line extension agreements and encourage carriers to minimize unserved regions of the states.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжгжџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSecond Recommended DecisionФФ, 13 FCC Rcd at 24764Љ24765.б#XNє\  P}XP#бй d йгж The Joint Board suggested that these issues should continue to be dealt with by states, to the extent that the states are able to do so.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЭзџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSecond Recommended Decision. ФФ13 FCC Rcd at 24765.б#XNє\  P}XP#бй d йЭж We note that regulators generally require carriers to use rate averaging to reduce the rates for their highestЉcost customers in rural and insular areas, but those regulators often still permit carriers to charge particularly isolated customers a supplementary "initial connection" charge for installing a new line. Moreover, while regulators also generally require carriers to amortize the cost of installing new lines, if there is a reasonable chance that those lines will not be used over their full lifeЉspan, regulators often permit carriers to charge most, if not all, of the initial connection charge up front. These charges can be prohibitive.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжŽиџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУSeeФФ Navajo Communications Company, response to Arizona Corporation Commission Data Request, ACC Docket No. TЉ2115Љ97Љ640 (Unserved Areas), Jun. 19, 1998 at attachment B. This document was placed on the record in CC Docket No. 96Љ45 and is available through the CommissionРРs Electronic Comment Filing System: г bb гўўВ§Њhttps://gullfoss.fcc.gov/cgi-bin/ws.exe/prod/ecfs/comsrch.htsЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttps://gullfoss.fcc.gov/cgiЉbin/ws.exe/prod/ecfs/comsrch.htsл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў. г dd гб#XNє\  P}XP#бй d йŽж We seek comment on whether states have the ability to address this problem, or, in the alternative, whether federal assistance, in some instances, may be necessary.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on what role the Commission might play in trying to alleviate this problem. We seek comment on whether we might provide additional support through the LinkUp America program ЉЉ which provides federal support to reduce the price of initial connection charges ЉЉ at least for locations with significantly lower than average telecommunications penetration rates, УУe.g.ФФ, below 75 percent.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж5йџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССLinkUp support is currently limited to a 50Љpercent discount on initial connection charges, up to a maximum of a $30 discount. УУSee ФФ47 C.F.R. РР 54.411.б#XNє\  P}XP#бй d й5ж Commenters supporting such an approach should also explain whether support would be provided as a oneЉtime payment or over a number of years. We also seek comment on what we might do to encourage carriers to offer installment loans for such extensions over a practical time frame. We seek comment on these and any other alternatives that might be more effective ways of addressing this problem. For example, we seek comment on whether the provision of telecommunication service to remote areas using terrestrial wireless or satellite technologies might allow service at lower cost compared to the cost of line extension or construction of wireline facilities. Commenters offering proposals should also explain how their proposals would avoid encouraging uneconomic investments in relatively highЉcost technologies. л Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc456170673Ї§ЏўўўўЏ§Ї_Toc456170673Ї§ЏўўўўЏ§Ї_Toc456674492Ї§ЏўўўўЏ§Ї_Toc456674492Ї§ЏўўўўЏ§Ї_Toc458418543Ї§ЏўўўўЏ§Ї_Toc458418543Ї§ЏўўўўЏ§Ї_Toc458419307Ї§ЏўўўўЏ§Ї_Toc458419307Ї§ЏўўўўЏ§Ї_Toc460144410Ї§ЏўўSupport for Intrastate Toll CallingўўЏ§Ї_Toc460144410Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn paragraph 30 above, we seek comment on the extent to which limited local calling areas impose a barrier to increased penetration in certain underserved areas. For example, the local calling area for the Jemez Pueblo in New Mexico includes only about half a dozen other towns. It does not include any other Pueblos or hospitals nor the cities of Albuquerque or Santa Fe, where most residents work.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжікџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSee Overcoming Obstacles Proceeding: Arizona Hearing,ФФ Testimony of Gov. Raymond Gachupin, Jemez Pueblo, p. 34; Testimony of Gov. Eagle Rael, Picuris Pueblo, p. 60; and Testimony of Anthony Lucio, Zuni Pueblo, at p. 63. УУSee alsoФФ УУOvercoming Obstacles Proceeding: Albuquerque HearingФФ, Testimony of Nora Helton, Fort Mojave Tribe, p. 43.б#XNє\  P}XP#бй d йіж Similarly, the calling area for the Picuris Pueblo does not even include 911 calls.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжлџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУSee Overcoming Obstacles Proceeding: Albuquerque HearingФФ, Testimony of Gov. Eagle Rael, Picuris Pueblo, at p. 60.б#XNє\  P}XP#бй d йж To the extent that limited local calling areas impose a barrier to increased penetration, we seek comment on how to remove this barrier. For example, expanding the local calling area to include the unserved or underserved area and the nearest metropolitan area or community of interest may entice more consumers to request service. Expanding local calling areas, however, would likely cause upward pressure on local rates. We seek comment on how expanded local calling areas would impact local rates, including rates for consumers living in communities outside of tribal lands. We seek comment on what role, if any, the Commission is authorized to and should play in seeking to address impediments caused by limited local calling areas. л Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether federal universal service support mechanisms should provide additional support for lowЉincome consumers living in remote areas or lowЉincome consumers living on tribal lands. For example, the Commission could provide support for calls outside of the local calling area that fall within specified federallyЉdesignated support areas. Similarly, federal universal service support could be provided to pay for a foreign exchange (FX) line service from the remote or tribal area to the nearest metropolitan area or community of interest. We seek comment on whether such proposals would eliminate incentives for states to ensure affordable local rates. We also seek comment on whether the provision of service by terrestrial wireless or satellite providers would alleviate any problems associated with limited local calling areas.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 2 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc456170674Ї§ЏўўўўЏ§Ї_Toc456170674Ї§ЏўўўўЏ§Ї_Toc456674493Ї§ЏўўўўЏ§Ї_Toc456674493Ї§ЏўўўўЏ§Ї_Toc458418544Ї§ЏўўўўЏ§Ї_Toc458418544Ї§ЏўўўўЏ§Ї_Toc458419308Ї§ЏўўўўЏ§Ї_Toc458419308Ї§ЏўўўўЏ§Ї_Toc460144411Ї§ЏўўExpanded Availability of Toll Limitation DevicesўўЏ§Ї_Toc460144411Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССMany households may forgo telecommunications service because of past or anticipated future problems with high telephone bills.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжѓмџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл Prof. Arturo Gandara, UC Davis Law School, July 7, 1998 Meeting on Indian Telecommunications Issues.б#XNє\  P}XP#бй d йѓж The general prevalence of this bill management problem was documented in a GTEЉPacific Bell commissioned survey done in 1993 by the Field Research Corp. for the California PUC.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжнџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл Field Research Corp., УУAffordability of Telephone Service: A Survey of Customers and NonЉCustomersФФ (funded jointly by GTE and Pacific Bell for the California Public Utilities Commission). This document was placed on the record of CC Docket No. 96Љ45 on July 28, 1999 and is available through the CommissionРРs Electronic Comment Filing System: ўўВ§Њhttps://gullfoss.fcc.gov/cgi-bin/ws.exe/prod/ecfs/comsrch.htsЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttps://gullfoss.fcc.gov/cgiЉbin/ws.exe/prod/ecfs/comsrch.htsл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў. б#XNє\  P}XP#бй d йж The Commission sought to address the problem, however, by requiring carriers offering lowЉincome subscribers "Lifeline" service, to permit those subscribers to secure a "toll limitation" service ЉЉ either toll blocking or toll control.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжРоџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУSeeФФ 47 C.F.R. РРРР 54.401(a)(3), 54.400.б#XNє\  P}XP#бй d йРж We believe that our actions in this regard should alleviate this bill management problem.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжМпџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл We are aware that at least three carriers serving Indian reservations in Arizona were able to offer toll blocking, but not toll control, and a fourth did not expect to offer either until the summer of 1998, but believe that that difficulty was only temporary. УУSeeФФ УУFort Mojave Order, supra.ФФб#XNє\  P}XP#бй d йМж We seek comment on whether expanded options for tollЉcontrol or tollЉblocking would make telecommunications service more desirable in unserved and underserved areas, including tribal lands. We ask that commenters identify any specific tollЉcontrol or tollЉblocking features that would be useful, including, for example, the ability to require the use of a Personal Identification Number (PIN) in order to restrict access to toll calls.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжрџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g, Overcoming Obstacles Proceeding, ФФTestimony of Karen Buller, National Indian Telecommunications Institute at p. 2.б#XNє\  P}XP#бй d йж We also recognize that the benefits of these options are minimal if consumers are not aware of them. We seek comment on what additional measures, if any, the Commission should undertake to ensure consumers are educated about the availability of tollЉlimitation devices.ўўЏ§Ї_Toc456170675Ї§ЏўўўўЏ§Ї_Toc456170675Ї§ЏўўўўЏ§Ї_Toc456674494Ї§Џўўл Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc456674494Ї§ЏўўўўЏ§Ї_Toc458418545Ї§ЏўўўўЏ§Ї_Toc458418545Ї§ЏўўўўЏ§Ї_Toc458419309Ї§ЏўўўўЏ§Ї_Toc458419309Ї§ЏўўўўЏ§Ї_Toc460144412Ї§ЏўўPublicizing Availability of LowЉIncome SupportўўЏ§Ї_Toc460144412Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe observe that customers may fail to subscribe to telecommunications service because they are unaware of the Commission's Lifeline and LinkUp programs, which are intended to make service more affordable, and the availability of tollЉcontrol and tollЉblocking, which are intended to help lowЉincome consumers control the amount of their monthly bills. Although the Commission's Lifeline and LinkUp programs have been providing universal service support to eligible customers for more than a decade, we are concerned that carriers may have failed to publicize the programs in some areas, particularly on Indian reservations. Unfortunately, it appears that in markets where carriers find it unprofitable to provide service, they have no particular incentive to publicize the availability of Lifeline and LinkUp. Thus, the Commission found that none of the representatives of the pueblos testifying in the January, 1999 Albuquerque field hearings were aware of the Lifeline and LinkUp programs.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж.сџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУSee, e.g., Overcoming Obstacles Proceeding: Albuquerque Hearing, ФФTestimony of Anthony Lucio, Zuni Pueblo, pp. 63. УУSee also id. ФФat pp. 72Љ75, 106Љ08.б#XNє\  P}XP#бй d й.ж Furthermore, despite the 60Љpercent unemployment rate in the Cheyenne River Sioux Telephone Authority area, only about 10Љpercent of the subscribers there receive Lifeline service.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж-тџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУSee, Overcoming Obstacles Proceeding: Arizona Hearing, ФФTestimony of J.D. Williams, Cheyenne River Sioux Telephone Authority, Transcript at 71Љ72 (draft).б#XNє\  P}XP#бй d й-жл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether the Commission should play a role in ensuring the spread of information on tribal lands, or in other lowЉincome, underserved areas, about the availability of lowЉincome support that may make telecommunications service affordable. We recognize that carriers already have an incentive to convince potential customers of the value of their service ЉЉ assuming the customers will be profitable to serve. We are concerned about those consumers whom carriers may consider unprofitable to serve. We tentatively conclude that a lack of information may contribute to the significantly low penetration rates on tribal lands.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on what options the Commission may have to promote awareness of lowЉincome support mechanisms on tribal lands. Section 214(e)(1)(B) of the Act requires an eligible telecommunications carrier to Р Рadvertise the availability ofРР the services supported by federal universal service support mechanisms Р Рand the charges therefor using media of general distribution.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжБуџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР214(e)(1)(B).б#XNє\  P}XP#бй d йБж We seek comment on the possibility of amending our current universal service rules to require carriers to publicize the availability of Lifeline and LinkUp and tollЉlimitation options. For example, we could revise section 54.405 of our rulesлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЋфџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 C.F.R. РР54.405.б#XNє\  P}XP#бй d йЋж by adding the following italicized language:л Para# л б#XNє\  P}XP#бллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААаа а xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџАааг ‚Ј§ гССAll telecommunications carriers shallУУ (a)ФФ make available Lifeline service, as defined in РР 54.401, to qualifying lowЉincome consumersУУ, and (b) publicize the availability of Lifeline service in a manner reasonably designed to reach those likely to qualify for the services.ФФ л Para# лб#XNє\  P}XP#блла ААА аг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on the costs and benefits of requiring carriers to publicize the availability of Lifeline, LinkUp and tollЉcontrol devices. Alternatively, the Commission could encourage and participate in other marketing and information dissemination efforts, such as preparing consumer information factЉsheets that would be distributed in local communities. We seek comment on whether there is, or should be, some entity that would collect and verify the accuracy of data on Lifeline rates for each reservation, the eligibility standards for Lifeline in the relevant state, and how individuals who desired Lifeline service could confirm their eligibility and how they could sign up for service. We also seek comment on the best ways to disseminate this information to the relevant audience of potential Lifeline subscribers. We seek comment on any research or other data that indicates the most effective way of marketing to this population, whether via broadcast, print, wireline, or other media; whether separately or in combination with the marketing efforts of other social programs seeking to reach this audience; and whether on a federal, state or tribal level. Commenters aware of a particularly effective program are requested to provide us with sufficient information to enable us to contact that program administrator.л Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc458418546Ї§ЏўўўўЏ§Ї_Toc458418546Ї§ЏўўўўЏ§Ї_Toc458419310Ї§ЏўўўўЏ§Ї_Toc458419310Ї§ЏўўўўЏ§Ї_Toc460144413Ї§ЏўўSupport for Rural Health Care InfrastructureўўЏ§Ї_Toc460144413Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn the 1996 Act, Congress ordered the Commission to provide universal service support for Р Рany public or nonprofit healthcare provider that serves persons who reside in rural areas.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЪхџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г 47 U.S.C. РР 254(h)(1)(A).г dd гб#XNє\  P}XP#бй d йЪж It also directed the agency Р Рto enhance, to the extent technically feasible and economically reasonable, access to advanced telecommunications and information services for all public and nonprofit . . . health care providers.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЪцџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г 47 C.F.R. РР 254(h)(2)(A).г dd гб#XNє\  P}XP#бй d йЪж In the УУFirst Report and OrderФФ, the Commission implemented these instructions by adopting rules to provide public or nonprofit Rural Health Care Providers (RHCPs) with discounts on one 1.544 bandwidth link or the equivalent over the distance generally necessary to reach the nearest urban hospital.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжФчџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г 47 C.F.R. РР 54.613.г dd гб#XNє\  P}XP#бй d йФж That discount generally enables an RHCP to pay no more than it would pay if it were located in the nearest urban area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжФшџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г 47 C.F.R. РР 54.613.г dd гб#XNє\  P}XP#бй d йФж In addition eligible public and nonЉprofit health care providers without local access to Internet service providers may also receive support for tollЉfree access to an Internet service provider.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж›щџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г 47 C.F.R. РР 54.621 grants health care providers support of up to $180 per month for up to 30 hours per month for toll charges for links to Internet service providers if the health care provider cannot obtain tollЉfree Internet access.г dd гб#XNє\  P}XP#бй d й›жл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССBoth the Joint Board and the Commission considered whether improvements to the public switched telephone network should be supported if such improvements are necessary to provide telemedicine and telehealth services in rural areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж]ъџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Report and OrderФФ, 12 FCC Rcd at 9108Љ10; УУFirst Recommended DecisionФФ, 12 FCC Rcd at 432; УУsee alsoФФ УУFirst Report and OrderФФ, 12 FCC Rcd at 9098Љ9107.г dd гб#XNє\  P}XP#бй d й]ж In the УУFirst Report and Order, ФФthe Commission discussed the need to improve telecommunications infrastructure in Alaska, particularly so that rural health care providers can use telemedicine and telehealth services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжцыџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSee First Report and Order, ФФ12 FCC Rcd at 9138Љ39.г dd гб#XNє\  P}XP#бй d йцж The State of Alaska asserted that "the major obstacle to providing telemedicine services in Alaska is that the public switched network is not currently capable of providing services in rural locations where there is significant need."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжјьџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУ Id.ФФ (quoting Alaska Mar. 7 УУex parte, ФФattachmentУУ ФФat 2Љ3).г dd гб#XNє\  P}XP#бй d йјж The Alaska Public Utilities Commission (PUC) asserted that Alaska is "heavily dependent on satellite communications to provide links between the majority of remote, rural health care providers and the few regional hospitals" and that affordable satellite connectivity is often limited to bandwidth of 9.6 kbps.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжэџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Alaska PUC universal service comments at 5. Under 1999 state law, the Alaska PUC ceased to exist as of June 30, 1999. Its responsibilities, including all open cases, were transferred to the new Alaska Regulatory Commission.г dd гб#XNє\  P}XP#бй d йж Because satellite signals must be "hopped" through multiple earth stations, including antiquated analog earth stations, residents of Alaska are often prevented from using fax machines or computer modems.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжюџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУг bb г First Report and OrderФФ, 12 FCC Rcd at 9138Љ39 (citing Alaska Mar. 7 УУex parte, ФФattachmentУУ ФФat 3).г dd гб#XNє\  P}XP#бй d йжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAlthough the Commission's Advisory Committee on Telecommunications and Health CareлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжPяџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г The Advisory Committee was established on June 12, 1996 to advise the Commission and the Joint Board on telemedicine, and particularly the provisions of the Telecommunications Act of 1996 relating to rural health care providers. The Advisory Committee, composed of 38 individuals with expertise and experience in the fields of health care, telecommunications, and telemedicine, issued its report on October 15, 1996. г dd гб#XNє\  P}XP#бй d йPж recommended that universal service support be available to build, improve, or extend telecommunications infrastructure in such areas,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжI№џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г FCC УУAdvisory Committee on Telecommunications and Health Care,ФФ УУFindings and RecommendationsФФ (October 15, 1996) at 8 (Advisory Committee Report).г dd гб#XNє\  P}XP#бй d йIж the Commission concluded that "the existing record contains insufficient information to determine the level of need for such infrastructure development or to estimate reliably the costs to support such development."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжтёџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУ First Report and OrderФФ, 12 FCC Rcd at 9109Љ10.г dd гб#XNє\  P}XP#бй d йтж In addition, the Commission concluded that it had insufficient information about existing federal and state programs already supporting infrastructure development and their success in meeting existing needs.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗђџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФг dd гб#XNє\  P}XP#бй d йЗж The Commission found that it has authority, under section 254(h)(2)(A), to implement a program of universal service support for infrastructure development as a method of enhancing access to advanced telecommunications and information services as long as such a program is competitively neutral, technically feasible, and economically reasonable.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжщѓџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 9109 УУcitingФФ 47 U.S.C. РР 254(h)(2)(A).г dd гб#XNє\  P}XP#бй d йщж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on the technical limitations of the telecommunications services available to rural health care providers throughout the United States, including Alaska and insular areas. We ask commenters to provide as much detail as possible regarding the extensions or improvements needed in areas lacking adequate infrastructure. We ask that commenters identify the most urgent needs, such as those that would address threats to the health and safety of residents. We particularly encourage providers of fixed satellite services, geoЉstationary satellites, and emerging technologies, to describe the capability of these technologies to serve Alaska and insular areas,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжщєџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г In the УУFirst Report and OrderФФ, the Commission recognized that nonЉwireline technologies may provide the most costЉeffective manner of providing services to areas currently underserved or receiving unsatisfactory service from the use of wireline technologies. УУFirst Report and OrderФФ, 12 FCC Rcd at 9108.г dd гб#XNє\  P}XP#бй d йщж and ask these providers to estimate the costs, provide a timetable for deploying particular technologies, and provide information regarding the capability of different technologies to support telehealth and telemedicine applications. We ask providers of other technologies, such as fixed wireless technology, to describe whether these technologies could effectively supplement the apparently inadequate infrastructure in the rural areas of Alaska, insular areas, and the mainland United States.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether and to what extent improvements to the telecommunications network required to meet the telecommunications needs of rural health care providers should be supported by federal universal service mechanisms and whether other mechanisms exist that would provide support for improving infrastructure. We ask parties to submit detailed descriptions of any programs supporting infrastructure development that would assist rural health care providers. We specifically ask the sponsors of programs cited in the State Health Care ReportлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжВѕџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSee id.ФФ at 9109Љ10 n.1668 (noting Office of Rural Health Policy's Rural Telemedicine Network Grant Program and Rural Health Outreach Grant Program; the Telecommunications and Information Infrastructure Program administered by NTIA; and the Internet Connections Grant Program and the High Performance Computing and Communications Program administered by the National Institutes of Health, Department of Health and Human Services and recent federal legislation that requires the Rural Utility Service to increase the capabilities of the telecommunications infrastructure installed pursuant to its program, which provides longЉterm loans to improve rural telecommunications infrastructure.) УУSee ФФ7 U.S.C. РР 935(d)(3)(B)(iv); 7 C.F.R. РР 1751.106 УУet seqФФ.г dd гб#XNє\  P}XP#бй d йВж and other commenters familiar with these programs to detail their scope, identify any needs that are unmet by existing programs, and explain why.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe invite commenters to submit specific proposals that they have already prepared for expanding the federal universal service support for rural health care providers to include infrastructure improvement costs of telecommunications carriers. Any commenter submitting a proposal should analyze the extent to which the proposal is competitively neutral, technically feasible, and economically reasonable, as required pursuant to section 254(h)(2).лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЧіџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г 47 U.S.C. РР 254(h)(2).г dd гб#XNє\  P}XP#бй d йЧж Commenters should also file detailed cost information for any proposal submitted. We recognize that some improvements to the telecommunications network made to provide service to rural health care providers may also be used to provide commercial services. We seek comment on whether and to what extent we should take account of such additional revenue sources in the event that support is provided to extend or improve telecommunications networks.лFootnote Refлб#єAє\  P}єP#бУУлл л#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжГїџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йг cc гФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSeeФФ Advisory Committee Report at 6 (recommending adoption of a mechanism to allow an eligible telecommunications carrier to repay, from its profits, universal service support for using infrastructure financed by universal service support).г dd гб#XNє\  P}XP#бй d йГжл Para# л б#XNє\  P}XP#блллHeading 1 лааб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒви€иўўЏ§Ї_Toc456170676Ї§ЏўўўўЏ§Ї_Toc456170676Ї§ЏўўўўЏ§Ї_Toc456674495Ї§ЏўўўўЏ§Ї_Toc456674495Ї§ЏўўўўЏ§Ї_Toc458418547Ї§ЏўўўўЏ§Ї_Toc458418547Ї§ЏўўўўЏ§Ї_Toc458419311Ї§ЏўўўўЏ§Ї_Toc458419311Ї§ЏўўўўЏ§Ї_Toc460144414Ї§ЏўўInsular AreasўўЏ§Ї_Toc460144414Ї§Џўўл!Heading 1 !лзз ааФ ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#бллг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn the УУFirst Report and OrderФФ, the Commission stated it would seek further comment in a subsequent proceeding on universal service issues affecting insular areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж јџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Report and OrderФФ, 12 FCC Rcd at 8997, 9109Љ10, 9137. УУSeeФФ Letter from David L. Sieradski, Counsel for the American Samoa Telecommunications Authority, to Valerie Yates, FCC (dated July 9, 1999) (encouraging the Commission to seek comment on providing support for telemedicine in insular areas, such as American Samoa) (ASTCA Letter).г dd гб#XNє\  P}XP#бй d й ж The Commission recognized that, while insular areas will benefit from the federal universal service support mechanisms, insular areas may face unique problems that could limit their ability to participate in and benefit from all of the universal service programs.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжХљџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 8995Љ9001.г dd гб#XNє\  P}XP#бй d йХж In particular, the Commission expressed concern about the low subscribership levels in insular areas, including Puerto Rico, and the potential need to tailor universal service support for both rural health care providers and telecommunications carriers in insular areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЬњџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 8843Љ44, 9136Љ38.г dd гб#XNє\  P}XP#бй d йЬж The Commission also concluded that it would consider in a later proceeding whether and how to support infrastructure development needed to enhance public and notЉforЉprofit health care providers' access to advanced telecommunications and information services, for both insular and nonЉinsular rural areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжРћџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 9109.г dd гб#XNє\  P}XP#бй d йРж We initiate that discussion in this section of the Further Notice. л Para# лŒб#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc456170677Ї§ЏўўўўЏ§Ї_Toc456170677Ї§ЏўўўўЏ§Ї_Toc454003596Ї§ЏўўўўЏ§Ї_Toc454003596Ї§ЏўўўўЏ§Ї_Toc454026892Ї§ЏўўўўЏ§Ї_Toc454026892Ї§ЏўўўўЏ§Ї_Toc454087415Ї§ЏўўўўЏ§Ї_Toc454087415Ї§ЏўўўўЏ§Ї_Toc454240656Ї§ЏўўўўЏ§Ї_Toc454240656Ї§ЏўўўўЏ§Ї_Toc454357532Ї§ЏўўўўЏ§Ї_Toc454357532Ї§ЏўўўўЏ§Ї_Toc456170654Ї§ЏўўўўЏ§Ї_Toc456170654Ї§ЏўўўўЏ§Ї_Toc456674496Ї§ЏўўўўЏ§Ї_Toc456674496Ї§ЏўўўўЏ§Ї_Toc458418548Ї§ЏўўўўЏ§Ї_Toc458418548Ї§ЏўўўўЏ§Ї_Toc458419312Ї§ЏўўўўЏ§Ї_Toc458419312Ї§ЏўўўўЏ§Ї_Toc460144415Ї§ЏўўDefining Р РInsular AreaРРўўЏ§Ї_Toc460144415Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn articulating the principle that consumers in all regions of the nation should have access to telecommunications services, Congress explicitly included insular areas within this mandate.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЧќџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г 47 U.S.C. РР 254(b)(3).г dd гб#XNє\  P}XP#бй d йЧж As the Joint Board noted in the УУRecommended DecisionФФ, however, the Act does not define the phrase insular areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжш§џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Recommended DecisionФФ, 12 FCC Rcd 87 at 93 n.8.г dd гб#XNє\  P}XP#бй d йшж We tentatively conclude that we should adopt a definition of insular areas to provide clarity regarding the availability of universal service support in those areas. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe observe that, in other statutes, the term insular area generally refers to the island portions of the United States that are not states or portions of states.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЛ ўџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУSee, e.g.,ФФ 16 U.S.C. РР 1802(30) (providing for conservation and management of the United States' fishery resources and defining "Pacific Insular Area" as American Samoa, Guam, the Northern Mariana Islands, Baker Island, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Island, Wake Island, or Palmyra Atoll, and including all islands and reefs appurtenant to such islands, reefs, or atolls); 16 U.S.C. РР 2503(k) (defining, for the purposes of the urban park and recreation recovery program, "insular areas" as Guam, the Virgin Islands, American Samoa, and the Northern Mariana Islands); 42 U.S.C. РР 5204 (providing for disaster relief for insular areas and defining them as American Samoa, the Federated States of Micronesia, Guam, the Marshall Islands, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and the Virgin Islands as insular areas); 48 U.S.C. РР 1469a (congressional declaration of policy regarding insular areas for certain grantЉinЉaid programs and defining them as the U.S. Virgin Islands, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Government of the Northern Mariana Islands); 48 U.S.C. РР 1492 (congressional declaration of energy policy with respect to insular areas and defining them as Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, the Federated States of Micronesia, the Marshall Islands, and Palau). УУSee alsoФФ 47 C.F.R. РР 2.105 (stating that the Caribbean insular areas comprise the Commonwealth of Puerto Rico, the unincorporated territory of the United States Virgin Islands; and Navassa Island, Quita Sueno Bank, Roncador Bank, Serrana Bank and Serranilla Bank; listing the Pacific insular areas in International Telecommunication Union Regions 2 and 3 as Johnston Island, Midway Island, the Commonwealth of the Northern Mariana Islands; the unincorporated territory of American Samoa; the unincorporated territory of Guam; and Baker Island, Howland Island, Jarvis Island, Kingman Reef, Palmyra Island, and Wake Island).б#XNє\  P}XP#бй d йЛ ж In addition, we observe that in common usage, the term insular area means "of, or having the form of an island."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжџџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг aa г УУ Id.ФФ at 2 (citing Webster's New World Dictionary 731 (2d. College ed. 1982)).б#XNє\  P}XP#бй d йг dd гж Accordingly, we propose the following definition of insular areas: Р Рislands that are territories or commonwealths of the United States.РР By including the phrase "territories or commonwealths," we intend to restrict the definition to areas that are populated islands that have a local government.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг aa г УУId.ФФб#XNє\  P}XP#бй d йг dd гЗж We also observe that the proposed definition comports with publications of the Department of Interior's Office of Insular Affairs (OIA)лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЌџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг aa г УУId.ФФ at 2, 3 (citing OIA's home page on the world wide web at http://www.doi.gov/territor.html and УУU.S. Department of Interior, Office of Insular Affairs, A Report on the State of the IslandsФФ (1996) (УУReport on the State of the IslandsФФ)).б#XNє\  P}XP#бй d йг dd гЌж and various provisions of the United States Code.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж№џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг aa г УУIdФФ. at 3 (citing 48 U.S.C. РРРР 1469a, 1492(a)(1), (3)).б#XNє\  P}XP#бй d йг dd г№ж We seek comment on this proposal.л Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether the definition of insular areas should include only those areas that are subject to the laws of the United States, and for which carriers serving those areas would be required to contribute to our universal service support mechanisms,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЩџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССThe Universal Service Worksheet states at page 3: Р Р[a]ll telecommunications carriers providing interstate telecommunications within the United States, with very limited exceptions, must file an FCC Form 457 Universal Service Worksheet. For this purpose, the United States is defined as the contiguous United States, Alaska, Hawaii, American Samoa, Baker Island, Guam, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Island, Navassa Island, the Northern Mariana Islands, Palmyra, Puerto Rico, the U.S. Virgin Islands, and Wake Island.РР б#XNє\  P}XP#бй d йЩж and, if so, we seek comment on whether the proposed definition satisfies this goal. We seek comment on whether the definition of insular areas should exclude sovereign states that are not subject to the laws of the United StatesлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжvџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССг bb гWe note that some sovereign states, such as the Marshall Islands, have signed Compacts of Free Association with the United States. УУSeeФФ УУReport on the State of the IslandsФФ at 110. г dd гб#XNє\  P}XP#бй d йvж nor eligible to receive universal service support under the Act,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллг bb гв X0УУФФX0УУФФ вжhџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССSection 254(b)(3) states the goal of providing access to those in insular areas, but it qualifies its coverage to Р Р[c]onsumers in all regions of the Nation,РР thereby excluding consumers in other nations. б#XNє\  P}XP#бй d йhж г dd гunpopulated islands,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж; џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССThe following islands are possessions or territories of the United States without population: Baker Island, Howland Island, Jarvis Island, Kingman Reef, and Navassa Island. УУSeeФФ http://www.doi.gov/oia/oiafacts.html; УУsee alsoФФ Policy and Rules Concerning the Interstate, Interexchange Marketplace, Implementation of Section 254(g) of the Communications Act of 1934, as amended, CC Docket No. 96Љ61, УУMemorandum Opinion and OrderФФ, 12 FCC Rcd 11548, 11559 (Com. Car. Bur. 1997) (УУ1997 Bureau Rate Integration and Averaging OrderФФ) (presenting results of Common Carrier Bureau's informal investigation of insular areas). Palmyra Island has a permanent population of fewer than four persons and is privately owned. УУSeeФФ ўўВ§Њhttp://www.doi.gov/oia/oiafacts.htmlЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.doi.gov/oia/oiafacts.htmlл! Hyperlink !лб Њ бггггб#єAє\  P}єP#бллб бўўВ§Њ€Њ§Вўў; УУ1997 Bureau Rate Integration and Averaging OrderФФ.б#XNє\  P}XP#бй d й; ж and insular areas subject to the jurisdiction of, and receiving telecommunications service from, the United States military.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж,џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССг bb гFor example, Wake Island and Johnston Atoll are military installations to which physical access is strictly regulated.г dd гб#XNє\  P}XP#бй d й,ж We tentatively conclude that Puerto Rico, American Samoa, CNMI, Guam, and the U.S. Virgin Islands are properly included in the definition of insular areas and seek comment on this tentative conclusion.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether the Freely Associated States (FAS), including the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau, should be included in the definition of insular areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж3џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ Letter from Robert A. Underwood, УУet al, ФФUnited States Congress, to William E. Kennard, Federal Communications Commission (dated May 8, 1998.)б#XNє\  P}XP#бй d й3ж These islands are associated with the United States through the terms of a Compact of Free Association, which gives the Commission authority and jurisdiction over various telecommunications services in the FAS, but carriers are not subject to universal service contribution requirements for the services they provide on these islands. We also observe that Midway Atoll is being transferred from the jurisdiction of the United States Navy to the U.S. Fish & Wildlife Service of the Department of Interior and has a population of 450 persons. We seek comment on whether Midway Atoll should be included in the definition of insular areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж) џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г None of these 450 residents are indigenous persons. In addition, Midway Atoll does not have a local government. УУ Id.ФФб#XNє\  P}XP#бй d йг dd г)ж We invite commenters to provide alternative definitions of Р Рinsular areasРР and to describe which areas would and would not be included with any alternative definition.л Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe seek comment on whether similarities between the historical experience of Indians and persons living in insular areas warrant the extension of federal trustЉtype principles, including supplemental measures to promote the availability of universal service, to insular areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж^ џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ Letter from David Sieradski, on behalf of the American Samoa Telecommunications Authority, to Valerie Yates, FCC (dated July 9, 1999) and discussion of tribal lands, at section III.A, above.б#XNє\  P}XP#бй d й^жл Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc456674497Ї§ЏўўўўЏ§Ї_Toc456674497Ї§ЏўўўўЏ§Ї_Toc458418549Ї§ЏўўўўЏ§Ї_Toc458418549Ї§ЏўўўўЏ§Ї_Toc458419313Ї§ЏўўўўЏ§Ї_Toc458419313Ї§ЏўўўўЏ§Ї_Toc460144416Ї§ЏўўRural Health Care SupportўўЏ§Ї_Toc460144416Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССParties have already submitted information to us demonstrating that insular areas may have few hospitals and substantial undeveloped terrain and that travel between insular areas and more developed states or countries nearest to them may be very expensive. For these reasons, we anticipate that telehealth and telemedicine initiatives may be particularly important in insular areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжv џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г The Joint Working Group on Telemedicine defines "telemedicine" as "the use of telecommunications and information [service] technologies for the provision and support of clinical care to individuals at a distance and the transmission of information needed to provide that care." It defines "telehealth" as including clinical care, but additionally encompassing the related areas of "health professionals' education, consumer health education, public health, research and administration of health services." УУFirst Report and OrderФФ, 12 FCC Rcd at 9094, n.1557УУ citing ФФУУJoint Working Group on Telemedicine,УУФФ ФФУУTelemedicine Report to the CongressФФ at 90, U.S. Department of Commerce (1997).г dd гб#XNє\  P}XP#бй d йvж We encourage interested parties to highlight previous comments they have made on this issue or present any relevant new information to us. We are particularly interested in the differences between the needs and opportunities of rural health care providers in insular areas and those located in the remainder of the United States.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССUrban Rates.ФФ In the УУFirst Report and Order,ФФ the Commission adopted rules requiring carriers to provide rural health care providers with access to telecommunications services permitting speeds up to 1 Mbps at rates comparable to those offered in urban areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжф џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г ССУУSeeФФ 47 C.F.R. 54.601 et seq (subpart G).г dd гб#XNє\  P}XP#бй d йфж Consistent with the statute, the CommissionРРs rules for rural health care providers calculate support amounts on the basis of the difference between the Р Рurban rateРР and the Р Рrural rateРР for the supported service.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжб џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР 254(h)(1)(A); 47 C.F.R. РРРР 54.605Љ609.б#XNє\  P}XP#бй d йбж The urban rate is determined with reference to the rates charged other commercial customers of a similar service in the nearest large city in the state.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЩџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР 254(h)(1)(A); 47 C.F.R. РР 54.605.б#XNє\  P}XP#бй d йЩж The nearest large city is defined as having a population of at least 50,000 people.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЌџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 C.F.R. РР 54.607.б#XNє\  P}XP#бй d йЌж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn the УУFirst Report and Order,ФФ the Commission found that the mechanism of using urban rates as a benchmark for reasonable rates may be illЉsuited to certain insular areas that are relatively rural all over.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжПџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУг bb гССFirst Report and OrderФФ, 12 FCC Rcd at 9136 (discussing this issue and then designating as "urban areas" for the purposes of the universal service support for rural health care providers: the island of Tutuila for American Samoa, the island of Saipan for CNMI, the town of Agana for Guam, and the town of Charlotte Amalie for the U.S. Virgin Islands). Based on the record, we concluded that Puerto Rico, like the remainder of the United States, did not require these additional measures. УУId.ФФ at 9138, para. 699 (finding that Puerto Rico has wellЉdefined metropolitan and nonЉmetropolitan areas and that the San Juan Regional Hospital and Main Medical Center is an advanced health care center offering sophisticated and advanced health care technology and services).г dd гб#XNє\  P}XP#бй d йПж The Commission concluded that it required additional information about whether telecommunications rates differ in urban and nonЉurban areas or insular areas, including areas of the Pacific Islands лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжuџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йг cc гФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г We note that American Samoa did not participate in the universal service proceeding. УУBut see,ФФ American Samoa Government and American Samoa Telecommunications Authority Petition for Waivers and Declaratory Rulings to Enable American Samoa to Participate in the Universal Service High Cost Support Program and the National Exchange Carriers Association Pools and Tariffs, CC Docket No. 96Љ45, AAD/USB File No. 98Љ41 (filed Feb. 1998).г dd гб#XNє\  P}XP#бй d йuж and the U.S. Virgin Islands.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжхџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Report and OrderФФ, 12 FCC Rcd at 9136, 9137.г dd гб#XNє\  P}XP#бй d йхж Accordingly, we seek comment on whether the rules concerning calculation of rural health care support need modifications to address the geographic or demographic situation in insular areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж}џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee, e.g., ФФASTCA Letter (Р Рbecause ASTCA maintains a single set of rates that apply throughout the territory, there is no difference in between the rates in Р РurbanРР and Р РruralРР [areas] within the Territory.РР)б#XNє\  P}XP#бй d й}ж We invite commenters to propose specific revisions in this regard. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССNearest Large City. ФФConsistent with the statute, the CommissionРРs rules for providing universal service support to rural health care providers limit the length of the supported service to the distance between the health care provider and the point farthest from that provider on the jurisdictional boundary of the nearest large city in the state.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЯџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР 254(h)(1)(A); 47 C.F.R. РР 54.601(c)(1).б#XNє\  P}XP#бй d йЯж The Governor of Guam proposed that we modify this rule to provide support for telecommunications services between an insular area's medical facilities and a supporting medical center in an urban area outside the insular area, such as in Hawaii or on the west coast of the continental United States.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЭџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSeeФФ Governor of Guam universal service comments at 2, 13. УУSee alsoФФ ASTCA Letter (Р Рthe rural telemedicine that American Samoa needs support for is access to the nearest U.S. УУurbanФФ area with advanced health care facilities Р!Р Honolulu.РР) (emphasis in original). г dd гб#XNє\  P}XP#бй d йЭж We seek comment on this proposal. We encourage commenters supporting this proposal to present detailed estimates of the cost of such a proposal and steps that must be taken to implement it. Commenters favoring this proposal should also provide legal analysis explaining whether it would be consistent with section 254 to treat insular areas differently from the remainder of the United States, where support is only provided based on intrastate distances, as section 254(h)(1)(A) appears to require.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжБџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР254(h)(1)(A).б#XNє\  P}XP#бй d йБж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССFinally, we seek comment on whether health care providers and telecommunications carriers that serve insular areas face unique challenges that have not been documented previously in the record of this proceeding, and, if so, how we should tailor additional support mechanisms to address those problems, consistent with the statute.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжцџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSee First Report and OrderФФ, 12 FCC Rcd at 9136Љ37.г dd гб#XNє\  P}XP#бй d йцж We encourage commenters to present proposals for additional support mechanisms through which rural health care providers located in insular areas could have access to the telecommunications services available in urban areas of the nation at affordable rates.л Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc454357563Ї§ЏўўўўЏ§Ї_Toc454357563Ї§ЏўўўўЏ§Ї_Toc456170678Ї§ЏўўўўЏ§Ї_Toc456170678Ї§ЏўўўўЏ§Ї_Toc456674498Ї§ЏўўўўЏ§Ї_Toc456674498Ї§ЏўўўўЏ§Ї_Toc458418550Ї§ЏўўўўЏ§Ї_Toc458418550Ї§ЏўўўўЏ§Ї_Toc458419314Ї§ЏўўўўЏ§Ї_Toc458419314Ї§ЏўўўўЏ§Ї_Toc460144417Ї§ЏўўAccess to TollЉFree Services in Insular AreasўўЏ§Ї_Toc460144417Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССBecause of their traditional treatment as international destinations, the Pacific Island areas have faced high rates for interexchange service and have had limited ability to obtain access to tollЉfree and advanced services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжoџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSeeФФ УУid.ФФ at 8995Љ900. Hawaii, Puerto Rico, and the U.S. Virgin Islands became rate integrated in 1976. УУSeeФФ Policy and Rules Concerning the Interstate, Interexchange Marketplace, Implementation of Section 254(g) of the Communications Act of 1934, as amended, CC Docket No. 96Љ61, УУReport and OrderФФ, 11 FCC Rcd 9564, 9586 (УУ1996 Rate Integration and Averaging OrderФФ) УУcitingФФ Integration of Rates and Services for the Provision of Communications by Authorized Common Carriers between the United States Mainland and the Offshore Points of Hawaii, Alaska, and Puerto Rico/Virgin Islands, УУMemorandum Opinion, Order, and AuthorizationФФ, 61 FCC 2d 380 (Com. Car. Bur. 1976).г dd гб#XNє\  P}XP#бй d йoж Calls between these insular areas and the remainder of the United States also required callers to use the "011" international access code.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжцџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSee First Report and OrderФФ, 12 FCC Rcd at 8995Љ96.г dd гб#XNє\  P}XP#бй d йцж Recent changes have begun to address these problems. Specifically, the 1996 Act requires that insular areas become subject to rate integration and averaging, which means that interexchange carriers are required to offer domestic interstate service using a uniform rate structure throughout the United States. лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж‹џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йг cc гФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Section 254(g) requires the Commission to "adopt rules to require that the rates charged by providers of interexchange telecommunications services to subscribers in rural and high cost areas shall be no higher than the rates charged by each such provider to its subscribers in urban areas . . . [and] require that a provider of interstate interexchange telecommunications services shall provide such services to its subscribers in each State at rates no higher than the rates charged to its subscribers in any other State." 47 U.S.C. РР 254(g). УУSee 1996 Rate Integration and Averaging OrderФФ, 11 FCC Rcd at 9596Љ99 (г dd гCommon Carrier Bureau approved, subject to certain amendments, rate integration plans for CNMI and Guam). American Samoa did not file its plan to comply with section 254(g) of the Act until October 1, 1997. УУSee ФФг bb г American Samoa Government's Proposed Rate Integration Plan for American Samoa, CC Docket 96-61, filed Oct. 1, 1997. УУSee also 1997 Bureau Rate Integration and Averaging OrderФФ, 12 FCC Rcd at 11557Љ59; Policy and Rules Concerning the Interstate, Interexchange Marketplace, Implementation of Section 254(g) of the Communications Act of 1934, as amended, УУOrderФФ, CC Docket No. 96Љ61, 13 FCC Rcd 1953 (Com. Car. Bur., Comp. Pric. Div. 1997) (granting American Samoa until Oct. 1, 1997 to file its plan and granting parties until Oct. 16, 1997 to submit comments on the plan); 47 U.S.C. РР 254(g).УУг dd гб#XNє\  P}XP#бй d йФФ‹ж In addition, many insular areas have been integrated into the North American Numbering Plan (NANP). лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йг cc гФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Report and OrderФФ, 12 FCC Rcd at 8995Љ96 (г dd гCNMI and Guam were integrated into the NANP on July 1, 1997)г bb г. г dd гAmerican Samoa, unlike CNMI and Guam, is not yet part of the NANPУУг bb г. See 1997 Bureau Rate Integration and Averaging OrderФФ, 12 FCC Rcd at 11557Љ59. г dd гб#XNє\  P}XP#бй d й ж In the УУFirst Report and OrderФФ, the Commission permitted residents of CNMI and Guam to access tollЉfree (УУe.g.ФФ, 800) services by using 880 and 881 codes and paying the cost of reaching Hawaii where the calls could be connected thereafter tollЉfree to the called party until July 1, 1998,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжHџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Report and OrderФФ, 12 FCC Rcd at 8999Љ9001. This period was established to allow time for telecommunications users to adjust to inclusion in the NANP. УУ See id.ФФ at 8999Љ9000. Because many tollЉfree access customers in the United States do not purchase tollЉfree access service that includes insular areas, some incumbent LECs in insular areas offer "paid access" to many toll free numbers using an 880 or 881 number. Under this arrangement, the calling party pays a charge that covers the cost of the portion of the call from the insular area to Hawaii, where the call is linked to the domestic tollЉfree access service. УУSee id.ФФ at 8996Љ97.г dd гб#XNє\  P}XP#бй d йHж and that date was subsequently extended indefinitely.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжНџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г FederalЉState Joint Board on Universal Service, Requests for Extension of 880/881 Transitional Dialing Plan by the Commonwealth of the Northern Mariana Islands and the Territory of Guam, УУOrderФФ, CC Docket No. 96Љ45, APD No. 98Љ2, DA 98Љ1299 (released June 30, 1998).г dd гб#XNє\  P}XP#бй d йНж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn the УУFirst Report and OrderФФ, the Commission determined that "these changes will have a significant impact on how residents of the[se] islands place interexchange calls and the rates that they, and tollЉfree access customers, will pay for the calls they place."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжпџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Report and Order, ФФ12 FCC Rcd at 8998.г dd гб#XNє\  P}XP#бй d йпж Based upon the recommendation of the Joint Board, the Commission concluded that it should delay, until after July 1, 1998, consideration of whether the Commission should provide additional support for tollЉfree access and access to advanced and information services for insular areas so that the impact of rate integration and averaging and incorporation into the NANP could be evaluated.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж‘џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУFirst Report and Order,ФФ 12 FCC Rcd at 8998Љ99, 9001 (stating that this additional time will allow the Commission to evaluate business decisions regarding the geographic scope of the tollЉfree services that they purchase).г dd гб#XNє\  P}XP#бй d й‘ж We seek comment on whether rate integration, rateЉaveraging, and incorporating insular areas into the NANP are leading toll-free customers to include insular areas in their toll-free calling areas. We seek comment on whether additional universal service support is needed to support tollЉfree calling from insular areas. We ask commenters to present any evidence that the marketplace will not fully solve this problem. л Para# л б#XNє\  P}XP#блллHeading 1 лааб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒви€иўўЏ§Ї_Toc453402625Ї§ЏўўўўЏ§Ї_Toc453402625Ї§ЏўўўўЏ§Ї_Toc453729705Ї§ЏўўўўЏ§Ї_Toc453729705Ї§ЏўўўўЏ§Ї_Toc453735484Ї§ЏўўўўЏ§Ї_Toc453735484Ї§ЏўўўўЏ§Ї_Toc453922468Ї§ЏўўўўЏ§Ї_Toc453922468Ї§ЏўўўўЏ§Ї_Toc453922617Ї§ЏўўўўЏ§Ї_Toc453922617Ї§ЏўўўўЏ§Ї_Toc454003630Ї§ЏўўўўЏ§Ї_Toc454003630Ї§ЏўўўўЏ§Ї_Toc454026926Ї§ЏўўўўЏ§Ї_Toc454026926Ї§ЏўўўўЏ§Ї_Toc454163276Ї§ЏўўўўЏ§Ї_Toc454163276Ї§ЏўўўўЏ§Ї_Toc454240700Ї§ЏўўўўЏ§Ї_Toc454240700Ї§ЏўўўўЏ§Ї_Toc454357566Ї§ЏўўўўЏ§Ї_Toc454357566Ї§ЏўўўўЏ§Ї_Toc456170679Ї§ЏўўўўЏ§Ї_Toc456170679Ї§ЏўўўўЏ§Ї_Toc456674499Ї§ЏўўўўЏ§Ї_Toc456674499Ї§ЏўўўўЏ§Ї_Toc458418551Ї§ЏўўўўЏ§Ї_Toc458418551Ї§ЏўўўўЏ§Ї_Toc458419315Ї§ЏўўўўЏ§Ї_Toc458419315Ї§ЏўўўўЏ§Ї_Toc460144418Ї§ЏўўProcedural MattersўўЏ§Ї_Toc460144418Ї§Џўўл!Heading 1 !лзз ааФ ФФФб#XNє\  P}XP#бллй йл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йа xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc453729708Ї§ЏўўўўЏ§Ї_Toc453729708Ї§ЏўўўўЏ§Ї_Toc453735485Ї§ЏўўўўЏ§Ї_Toc453735485Ї§ЏўўўўЏ§Ї_Toc453922469Ї§ЏўўўўЏ§Ї_Toc453922469Ї§ЏўўўўЏ§Ї_Toc453922618Ї§ЏўўўўЏ§Ї_Toc453922618Ї§ЏўўўўЏ§Ї_Toc454003631Ї§ЏўўўўЏ§Ї_Toc454003631Ї§ЏўўўўЏ§Ї_Toc454026927Ї§ЏўўўўЏ§Ї_Toc454026927Ї§ЏўўўўЏ§Ї_Toc454163277Ї§ЏўўўўЏ§Ї_Toc454163277Ї§ЏўўўўЏ§Ї_Toc454240701Ї§ЏўўўўЏ§Ї_Toc454240701Ї§ЏўўўўЏ§Ї_Toc454357567Ї§ЏўўўўЏ§Ї_Toc454357567Ї§ЏўўўўЏ§Ї_Toc456170680Ї§ЏўўўўЏ§Ї_Toc456170680Ї§ЏўўўўЏ§Ї_Toc456674500Ї§ЏўўўўЏ§Ї_Toc456674500Ї§ЏўўўўЏ§Ї_Toc458418552Ї§ЏўўўўЏ§Ї_Toc458418552Ї§ЏўўўўЏ§Ї_Toc458419316Ї§ЏўўўўЏ§Ї_Toc458419316Ї§ЏўўўўЏ§Ї_Toc460144419Ї§ЏўўEx Parte ProceduresўўЏ§Ї_Toc460144419Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Further Notice is a nonЉrestricted notice and comment rulemaking proceeding. УУEx parteФФ presentations are permitted, except during the Sunshine Agenda period, provided they are disclosed as provided in the CommissionРРs rules.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжл џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee generally ФФ47 C.F.R. РРРР 1.1202, 1.1203, and 1.1206(a).б#XNє\  P}XP#бй d йлжл Para# л б#XNє\  P}XP#бллл Heading 2 лб#XNє\  P}XP#бУ Уззллг Ш гй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Toc456170681Ї§ЏўўўўЏ§Ї_Toc456170681Ї§ЏўўўўЏ§Ї_Toc456674501Ї§ЏўўўўЏ§Ї_Toc456674501Ї§ЏўўўўЏ§Ї_Toc458418553Ї§ЏўўўўЏ§Ї_Toc458418553Ї§ЏўўўўЏ§Ї_Toc458419317Ї§ЏўўўўЏ§Ї_Toc458419317Ї§ЏўўўўЏ§Ї_Toc460144420Ї§ЏўўComment Filing ProceduresўўЏ§Ї_Toc460144420Ї§ЏўўўўЏ§Ї_Toc453402627Ї§ЏўўўўЏ§Ї_Toc453402627Ї§ЏўўўўЏ§Ї_Toc453729707Ї§ЏўўўўЏ§Ї_Toc453729707Ї§ЏўўўўЏ§Ї_Toc453735486Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССўўЏ§Ї_Toc453735486Ї§ЏўўўўЏ§Ї_Ref459536972Ї§ЏўўPursuant to sections 1.415 and 1.419 of the CommissionРРs rules,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЙ!џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 C.F.R. РРРР 1.415 and 1.419.б#XNє\  P}XP#бй d йЙж interested parties may file comments as follows: comments are due 60 days after publication of the Further Notice in the Federal Register and reply comments are due 90 days after publication of the Further Notice in the Federal Register. Comments may filed using the CommissionРРs Electronic Comment Filing System (ECFS)лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжѕ"џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee Electronic Filing of Documents in Rulemaking Proceedings, ФФ63 Fed. Reg. 24,121 (1998).б#XNє\  P}XP#бй d йѕж or by filing paper copies. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССComments filed through the ECFS can be sent as an electronic file via the Internet to ўўВ§Њhttp://www.fcc.gov/e-file/ecfs.htmlЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллhttp://www.fcc.gov/eЉfile/ecfs.htmlл! Hyperlink !лб Њ бггггб#XNє\  P}XP#бллўўВ§Њ€Њ§Вўў. Generally, only one copy of an electronic submission must be filed. If multiple docket or rulemaking numbers appear in the caption of this proceeding, however, commenters must transmit one electronic copy of the comments to each docket or rulemaking number referenced in the caption. In completing the transmittal screen, commenters should include their full name, Postal Service mailing address, and the applicable docket or rulemaking number. Parties may also submit an electronic copy by Internet eЉmail. To get filing instructions for eЉmail comments, commenters should send an eЉmail to ўўВ§Њmailto:ecfs@fcc.govЊ§Вўўл Hyperlink лб#єAє\  P}єP#бггггб Ћ бллecfs@fcc.govл! Hyperlink !лб Њ бггггб#XNє\  P}XP#бллўўВ§Њ€Њ§Вўў, and should include the following words in the body of the message: Р Рget form .РР A sample form and directions will be sent in reply.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССParties who choose to file by paper must file an original and four copies of each filing. If more than one docket or rulemaking number appears in the caption of this proceeding, commenters must submit two additional copies for each additional docket or rulemaking number. All paper filings must be sent to the CommissionРРs Secretary, Magalie Roman Salas, Office of the Secretary, Federal Communications Commission, 445 Twelfth Street S.W., Room TWЉA325, Washington, DC 20554. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССParties who choose to file by paper should also submit their comments on diskette to Sheryl Todd, Accounting Policy Division, Common Carrier Bureau, Federal Communications Commission, 445 Twelfth Street SW, Room 5ЉA523, Washington, DC 20554. Such a submission should be on a 3.5 inch diskette formatted in an IBMЉcompatible format using WordPerfect 5.1 for Windows or a compatible software. The diskette should be accompanied by a cover letter and should be submitted in Р РreadЉonlyРР mode. The diskette should be clearly labeled with the commenterРРs name, proceeding, including the lead docket number in the proceeding (CC Docket No. 96Љ45), type of pleading (comment or reply comment), date of submission, and the name of the electronic file on the diskette. The label should also include the following phrase (Disk Copy Р!Р Not an Original.РР) Each diskette should contain only one partyРРs pleadings, preferably in a single electronic file. In addition, commenters should sent diskette copies to the CommissionРРs copy contractor, International Transcription Service, Inc., 1231 20УУthФФ St. NW, Washington DC 20037.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 2 лб#єAє\  P}єP#бУ Уззллг Ш гб#XNє\  P}XP#бй d йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xАА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааииССўўЏ§Ї_Ref459536972Ї§ЏўўўўЏ§Ї_Toc453922470Ї§ЏўўўўЏ§Ї_Toc453922470Ї§ЏўўўўЏ§Ї_Toc453922619Ї§ЏўўўўЏ§Ї_Toc453922619Ї§ЏўўўўЏ§Ї_Toc454003632Ї§ЏўўўўЏ§Ї_Toc454003632Ї§ЏўўўўЏ§Ї_Toc454026928Ї§ЏўўўўЏ§Ї_Toc454026928Ї§ЏўўўўЏ§Ї_Toc454163278Ї§ЏўўўўЏ§Ї_Toc454163278Ї§ЏўўўўЏ§Ї_Toc454240702Ї§ЏўўўўЏ§Ї_Toc454240702Ї§ЏўўўўЏ§Ї_Toc454357568Ї§ЏўўўўЏ§Ї_Toc454357568Ї§ЏўўўўЏ§Ї_Toc456170682Ї§ЏўўўўЏ§Ї_Toc456170682Ї§ЏўўўўЏ§Ї_Toc456674502Ї§ЏўўўўЏ§Ї_Toc456674502Ї§ЏўўўўЏ§Ї_Ref458413366Ї§ЏўўўўЏ§Ї_Ref458413366Ї§ЏўўўўЏ§Ї_Toc458418554Ї§ЏўўўўЏ§Ї_Toc458418554Ї§ЏўўўўЏ§Ї_Toc458419318Ї§ЏўўўўЏ§Ї_Toc458419318Ї§ЏўўўўЏ§Ї_Toc460144421Ї§ЏўўInitial Regulatory Flexibility Act AnalysisўўЏ§Ї_Toc460144421Ї§Џўўл! Heading 2 !лзз Ф Фб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Regulatory Flexibility Act (RFA) requires a Regulatory Flexibility Act analysis whenever an agency publishes a notice of proposed rulemaking or promulgates a final rule, unless the agency certifies that the proposed or final rule will not have Р Рa significant economic impact on a substantial number of small entities,РР and includes the factual basis for such certification.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж#џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС5 U.S.C. РР 601 УУet. seq., ФФamended by the Contract with America Advancement Act of 1996, Pub. L. No. 104Љ121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA). б#XNє\  P}XP#бй d йж Pursuant to section 603 of the RFA, the Commission has prepared an Initial Regulatory Flexibility Analysis (IRFA) of the possible significant economic impact on small entities by the policies and actions considered in this Further Notice. The text of the IRFA is set forth in Appendix F. Written public comments are requested on this IRFA. Comments must be identified as responses to the IRFA and must be filed by the deadlines for comments on the Further Notice provided above in paragraph 149. The Commission will send a copy of the Further Notice, including the IRFA, to the Chief Counsel for Advocacy of the Small Business Administration.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЕ$џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ 5 U.S.C. РР 603(a).б#XNє\  P}XP#бй d йЕж In addition, summaries of the Further Notice and IRFA will be published in the Federal Register.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЃ%џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee id.ФФб#XNє\  P}XP#бй d йЃжл Para# л б#XNє\  P}XP#блллHeading 1 лааб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒви€иўўЏ§Ї_Toc453735487Ї§ЏўўўўЏ§Ї_Toc453735487Ї§ЏўўўўЏ§Ї_Toc453922471Ї§ЏўўўўЏ§Ї_Toc453922471Ї§ЏўўўўЏ§Ї_Toc453922620Ї§ЏўўўўЏ§Ї_Toc453922620Ї§ЏўўўўЏ§Ї_Toc454003633Ї§ЏўўўўЏ§Ї_Toc454003633Ї§ЏўўўўЏ§Ї_Toc454026929Ї§ЏўўўўЏ§Ї_Toc454026929Ї§ЏўўўўЏ§Ї_Toc454163279Ї§ЏўўўўЏ§Ї_Toc454163279Ї§ЏўўўўЏ§Ї_Toc454240703Ї§ЏўўўўЏ§Ї_Toc454240703Ї§ЏўўўўЏ§Ї_Toc454357569Ї§ЏўўўўЏ§Ї_Toc454357569Ї§ЏўўўўЏ§Ї_Toc456170683Ї§ЏўўўўЏ§Ї_Toc456170683Ї§ЏўўўўЏ§Ї_Toc456674503Ї§ЏўўўўЏ§Ї_Toc456674503Ї§ЏўўўўЏ§Ї_Toc458418555Ї§ЏўўўўЏ§Ї_Toc458418555Ї§ЏўўўўЏ§Ї_Toc458419319Ї§ЏўўўўЏ§Ї_Toc458419319Ї§ЏўўўўЏ§Ї_Toc460144422Ї§ЏўўOrdering clausesўўЏ§Ї_Toc460144422Ї§ЏўўўўЏ§Ї_Toc453735488Ї§Џўўл!Heading 1 !лзз ааФ ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#бллг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAccordingly, IT IS ORDERED that, pursuant to the authority contained in sections 1Љ4, 201Љ205, 214(e), and 254 of the Communications Act of 1934, as amended, 47 U.S.C. РРРР 151Љ154, 201Љ205, 214(e), and 254, this FURTHER NOTICE OF PROPOSED RULEMAKING IS HEREBY ADOPTED and COMMENTS ARE REQUESTED as described above.л Para# лŒб#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гХХб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIT IS FURTHER ORDERED that the CommissionРРs Office of Public Affairs, Reference Operations Division, SHALL SEND a copy of this FURTHER NOTICE OF PROPOSED RULEMAKING, including the Initial Regulatory Flexibility Act Analysis, to the Chief Counsel for Advocacy of the Small Business Administration.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гг ‚X гб#XNє\  P}XP#бл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#блла xАРА аг d гааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџРьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАРааFEDERAL COMMUNICATIONS COMMISSIONл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#блла РААА аг d гаал Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааССССССССССССССССССССССССMagalie Roman Salasл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гССССССССССССССССССССССССSecretaryл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гХХл Para# л б#XNє\  P}XP#блл лTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Уллй Ш йўўЏ§Ї_Toc453735488Ї§ЏўўўўЏ§Ї_Toc456170684Ї§ЏўўўўЏ§Ї_Toc456170684Ї§ЏўўўўЏ§Ї_Toc458418556Ї§ЏўўўўЏ§Ї_Toc458418556Ї§ЏўўўўЏ§Ї_Toc460144423Ї§ЏўўAPPENDIX A:ССCOMMISSION MEETINGS ON INDIAN TELECOMMUNICATIONS ISSUES Р!Р LIST OF ATTENDEESўўЏ§Ї_Toc460144423Ї§ЏўўлTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџРьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАРааФ Фб#XNє\  P}XP#бллй йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааУ УУУ April 30, 1998 Ф ФФФ У УOutside Parties: Ф ФCharles Blackwell, Ambassador from the Chickasaw Nation Jack Brown, Golden West, SD James Casey, Morrison & Forester Audrey Choi, Office of Vice President Gore Darrell Gerlaugh, Gila River Telephone Inc., AZ Steve Gigamough, Salt River Pima, AZ Robert Gough, Intertribal Council on Utility Policy, Rosebud SD L. Marie Guillory, NTCA Larry Irving, NTIA Alex Lookingelk, Standing Rock Sioux Tribe, ND Chris McLean, Rural Utilities Service Bill Quinn, Salt River PimaЉMaricopa Indian Community Pat Spears, Intertribal Council on Utility Policy, SD Tony Thompson, Oneida Nation Alice Walker, Cheyenne River Sioux Tribal Telephone Authority, CO JD Williams, Cheyenne River Sioux, SD У УCommission Participants: Ф ФChairman William E. Kennard Commissioner Susan Ness Commissioner Gloria Tristani John Nakahata, Chief of Staff Ruth Milkman, Deputy Chief, Common Carrier Bureau Catherine Sandoval, Director, Office of Communications Business Opportunities Staff from the Common Carrier Bureau, Wireless Telecommunications Bureau, International Bureau, Office of Legislative and Intergovermental Affairs, Office of Communications Business Opportunities and the Office of General Counsel У УУУJuly 7, 1998 Ф ФФФ У УOutside Parties: Ф ФCharles Blackwell, Ambassador from the Chickasaw Nation James Casey, Morrison and Forester Prof. Arturo Gandara, University of California Davis Law School Robert Gough, Intertribal Council on Utility Policy, Rosebud SD Dr. James May, Cal. St. Univ. at Monterey Bay, CA Roanne Robinson, NTIA Randy Ross, SDŒPat Spears, Intertribal Council on Utility Policy, SD У УCommission Participants Ф ФChairman William E. Kennard Commissioner Gloria Tristani Rick Chessen, Senior Legal Advisor, Office of Commissioner Tristani Paul Gallant, Legal Advisor, Office of Commissioner Tristani Michele Ellison, Deputy General Counsel, Office of General Counsel Catherine Sandoval, Director, Office of Communications Business Opportunities Staff from the Common Carrier Bureau, Wireless Telecommunications Bureau, Mass Media Bureau, Cable Services Bureau, Office of Communications Business Opportunities, the Office of Workplace Diversity, and the Office of General Counsel лTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Уллй Ш йўўЏ§Ї_Toc458418557Ї§ЏўўўўЏ§Ї_Toc458418557Ї§ЏўўўўЏ§Ї_Toc460144424Ї§ЏўўAPPENDIX B: ССOVERCOMING OBSTACLES TO TELEPHONE SERVICE TO INDIANS ON RESERўўЏ§Ї_Toc460144424Ї§ЏўўўўЏ§Ї_Hlt457724388Ї§ЏўўўўЏ§Ї_Hlt457724388Ї§ЏўўVATIONS б#Xrє\  P}QXP#бР- Рб#XNє\  P}XP#бCOMMISSION HEARINGSлTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааФ Фб#XNє\  P}XP#бллй йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааУ УУУ Albuquerque Hearing Ф ФФФ Chairman William E. Kennard, Federal Communications Commission Commissioner Gloria Tristani, Federal Communications Commission The Honorable Tom Udall, United States House of Representatives The Honorable Heather Wilson, United States House of Representatives The Honorable Leonard Tsosie, State of New Mexico House of Representatives The Honorable Lynda Lovejoy, Chairwoman, State of New Mexico Public Regulation Commission The Honorable Eagle Rael, Governor, Picuris Pueblo The Honorable Steve Beffort, Secretary, New Mexico General Services Department The Honorable Anthony O. Lucio, Councilman, Zuni Pueblo The Honorable Raymond Gachupin, Governor, Jemez Pueblo The Honorable Jerome Block, State of New Mexico Public Regulation Commission The Honorable Herb Hughes, State of New Mexico Public Regulation Commission The Honorable Bill Pope, State of New Mexico Public Regulation Commission The Honorable Arnold Cassador, President, Jicarilla Apache Tribe Jean Whitehorse, Native American Library Project, Crownpoint, NM The Honorable Tony Anaya, former Governor of New Mexico Arthur Martinez, Western New Mexico Telephone Company, Inc. Edward Lopez, New Mexico Vice President, U S West Francis Mike, Navajo Communications Company, Inc. Gene DeJordy, Esq., Executive Director Р!Р Regulatory Affairs, Western Wireless Corporation George Arthur, Council Delegate, Navajo Nation Godfrey Enjady, General Manager, Mescalero Apache Telephone and Utilities Company Karen Buller, President, National Indian Telecommunications Institute Peter Carson, ViceЉPresident, Business Development, ArrayComm, Inc. Richard Weiner, Esq., State of New Mexico Office of the Attorney General Stanley Pino, Chairman, All Indian Pueblo Council Mr. Scholten Henry Dodge, Ramah Navajo Chapter, NM Mary Alice Tsosie, Native American Librarian and Special Interest Group, NM У УУУ Arizona Hearing Ф ФФФ Chairman William E. Kennard, Federal Communications Commission Commissioner Susan Ness, Federal Communications Commission Commissioner Harold FurchtgottЉRoth, Federal Communications Commission Jim Irvin, Commissioner Chairman, Arizona Corporation Commission The Honorable Charles Blackwell, Ambassador for the Chickasaw NationŒJames Casey, Morrison and Forester David Motycka, Utilities Division, Arizona Corporation Commission Mark DiNunzia, Utilities Division, Arizona Corporation Commission Maureen Scott, Arizona Corporation Commission Patrick Black, Chief of Staff, Arizona Corporation Commission David Redick, CA Ed Groenhout, Northern Arizona University, AZ Laura Lo Bianco, Iridium North America Herman Laffoon, Jr., Colorado Indian Tribes, Parker, AZ Alison Hughes, Associate Director, Arizona Telemedicine Program, Rural Health Office, University of Arizona, College of Medicine Aloa Stevens, Director, External Affairs Р!Р West, Citizens Communications Carl Artman, Oneida Nation, Airadigm Communications, Inc. Charles W. Wiese, General Manager, Tohono O'odham Utility Authority Christopher McLean, Deputy Administrator, Rural Utility Service, U. S. Department of Agriculture David Siddall, Esq., Verner, Liipfert, Bernhard, McPherson and Hand, Chartered Ivan Makil, President, Salt River PimaЉMaricopa Indian Community J. D. Williams, General Manager, Cheyenne River Telephone Authority Jeff Olson, Director, Regulatory Planning and Policy for Issues Integration/Planning and Strategy, GTE Service Corporation Madonna Peltier Yawakie, President, NATec, Inc. Nora Helton, Chairperson, Fort Mojave Indian Tribe Rhonda McKenzie, President and Chief Executive Officer, Aircom Consultants, LLC d/b/a InAirNet Richard Watkins, General Manager, Smith Bagley, Inc. operating as Cellular One of Northeast Arizona The Honorable Mary Thomas, Governor, Gila River Indian Community Vernon James, President, San Carlos Apache Telecommunications Utility, Inc. Walter Purnell, President and Chief Executive Officer, American Mobile Satellite Corporation лTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Уллй Ш йлTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааФ Фб#XNє\  P}XP#блллTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ УлллTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааФ Фб#XNє\  P}XP#бллй йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааУ У лTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бллй Ш йўўЏ§Ї_Toc458418558Ї§ЏўўўўЏ§Ї_Toc458418558Ї§ЏўўўўЏ§Ї_Toc460144425Ї§ЏўўAPPENDIX C:ССOVERCOMING OBSTACLES TO TELEPHONE SERVICE TO INDIANS ON RESERVATIONS Р!Р PARTIES FILING COMMENTSўўЏ§Ї_Toc460144425Ї§Џўў ўўЏ§Ї_Hlt457725609Ї§ЏўўўўЏ§Ї_Hlt457725609Ї§Џўў лTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллФ Фй йлHeader лааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАРа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ ААааб#XNє\  P}XP#бллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААаалHeader л ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллУ УУУCOMMENTS Ф ФФФAMSC Subsidiary Corporation Bell Atlantic Mobile Cellular Telecommunications Industry Association Gila River Telecommunications, Inc. ICO Global Communications (Holding) Limited Motorola, Inc. National Telephone Cooperative Association National Tribal Telecommunications Alliance Nemont Telephone Cooperative, Inc. North Dakota Public Service Commission Salt River PimaЉMaricopa Indian Community SkyBridge, LLC Southwestco Wireless, L.P. TCA, Inc. Љ Telcom Consulting Associates The Hopi Tribe US West Communications, Inc. Western Wireless Corporation У УУУLETTERS Ф ФФФColorado River Indian Tribes Daryl Towenk, Concerned People, Lewiston, NY Eastern Nebraska Telephone Company Ernest and Carol E. Patterson, Concerned People, Lewiston, NY Frank L. Williams, Tuscarora Indian Reservation, NY Mark F. Williams, Sr., Tuscarora Indian Reservation, NY Stefan J. Levine, Red Bank, NJ United Native American Telecommunications, Inc. William Martin, Tuscarora Indian Reservation, NY У УУУTESTIMONY Ф ФФФAlison Hughes, Arizona Telemedicine Program Aloa J. Stevens, Citizens Communications and Navajo Communications Company Arthur Martinez, Western New Mexico Telephone Company, Inc. Carl Artman, Airadigm Communications, Inc. Charles W. Wiese, Tohono OРРodham Utility Authority л1ла ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАааг ‚Ј§ гб#XNє\  P}XP#бллChristopher A. McLean, Deputy Administrator, Rural Utilities Service, United States Department of Agricultureл1л а ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллCommissioner Chairman James Irvin, Arizona Corporation Commission Councilman Anthony Lucio, Zuni Pueblo David R. Siddall, Esq.ŒEdward J. Lopez, Jr., US West Francis Mike, New Mexico Telephone Association and Navajo Communications Company, Inc. George Arthur, Navajo Nation Godfrey Enjady, Mescalero Apache Telephone and Utilities Company Governor Eagle Rael, Picuris Pueblo Governor Mary Thomas, Gila River Indian Community Governor Raymond Gachupin, Pueblo of Jemez Ivan Makil, Salt River PimaЉMaricopa Indian Community J.D. Williams, Cheyenne River Sioux Telephone Authority Jeff Olson, GTE Service Corporation Karen Buller, National Indian Telecommunications Institute Madonna Peltier Yawakie, NAtec, Inc. Nora Helton, Fort Mojave Telecommunications, Inc. Peter Carson, ArrayComm, Inc. President Arnold Cassador, Jicarilla Apache Tribe Rhonda G. McKenzie, MTG, Inc. and Aircom Consultants, LLC Richard Watkins, Smith Bagley, Inc. (operating as Cellular One) Stanley Pino, All Indian Pueblo Council Steven R. Beffort, State of New Mexico, General Services Department Walter Purnell, American Mobile Satellite Company лTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Уллй Ш йлTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааФ Фб#XNє\  P}XP#бллй й лTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Уллй Ш йўўЏ§Ї_Hlt454238236Ї§ЏўўўўЏ§Ї_Hlt454238236Ї§ЏўўўўЏ§Ї_Toc456170686Ї§ЏўўўўЏ§Ї_Toc456170686Ї§ЏўўўўЏ§Ї_Toc457815199Ї§ЏўўўўЏ§Ї_Toc457815199Ї§ЏўўўўЏ§Ї_Toc460144426Ї§ЏўўAPPENDIX D:ССCOMPETITIVE BIDDING PROPOSALS AND EXAMPLESўўЏ§Ї_Toc460144426Ї§ЏўўлTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааФ Фб#XNє\  P}XP#бллй йл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва АА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453922472Ї§ЏўўўўЏ§Ї_Toc453922472Ї§ЏўўўўЏ§Ї_Toc453922625Ї§ЏўўўўЏ§Ї_Toc453922625Ї§ЏўўўўЏ§Ї_Toc454003638Ї§ЏўўўўЏ§Ї_Toc454003638Ї§ЏўўўўЏ§Ї_Toc454026934Ї§ЏўўўўЏ§Ї_Toc454026934Ї§ЏўўўўЏ§Ї_Toc454163284Ї§ЏўўўўЏ§Ї_Toc454163284Ї§ЏўўўўЏ§Ї_Toc454240708Ї§ЏўўўўЏ§Ї_Toc454240708Ї§ЏўўўўЏ§Ї_Toc454357574Ї§ЏўўўўЏ§Ї_Toc454357574Ї§ЏўўўўЏ§Ї_Toc456170687Ї§ЏўўўўЏ§Ї_Toc456170687Ї§ЏўўўўЏ§Ї_Toc456674504Ї§ЏўўўўЏ§Ї_Toc456674504Ї§ЏўўўўЏ§Ї_Toc457815200Ї§ЏўўGTE ProposalўўЏ§Ї_Toc457815200Ї§Џўў л! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССGTE proposes that there be bidding for support in geographic areas called Census Block Groups (CBGs).лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж­&џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Letter from W. Scott Randolph, GTE, to Mark Nadel, FCC, CC Docket 96Љ45, dated June 20, 1997 (GTE June 20 УУex parteФФ) at 14. A census block group is a geographic area defined by the Bureau of the Census, which contains approximately 400 households. б#XNє\  P}XP#бй d йг dd г­ж Every six months, carriers desiring to serve a CBG could notify the state commission with jurisdiction over that CBG, that they wanted to initiate an auction for the rights and duties of carrier of last resort (COLR)лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжŽ'џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г GTE defines a COLR as a carrier eligible for universal service support that undertakes the obligations established by a state agency, within federal guidelines, as a condition of receipt of federal universal service support.б#XNє\  P}XP#бй d йг dd гŽж in that CBG.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжв(џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г GTE June 20 УУex parteФФ at 19Љ20.б#XNє\  P}XP#бй d йг dd гвж Assuming there were enough qualified bidders, the state would employ a single round, sealedЉbid auction to set the perЉcustomer support in that CBG.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжТ)џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId. ФФat 18, 20.б#XNє\  P}XP#бй d йг dd гТж Bids could be no higher than the "reservation" price for each CBG. That reservation price would be based on the current level of support an incumbent LEC was receiving for that CBG, although each incumbent LEC would be permitted to make a oneЉtime set of adjustments to the support levels for the CBGs they served as long as the total support received by the incumbent LEC from all the CBGs it served remained the same.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж]*џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Thus a LEC could increase the level of support it received for serving some CBGs and decrease it for others as long as the net effect on support was zero. УУId.ФФ at 16Љ17.б#XNє\  P}XP#бй d йг dd г]ж The adjusted support levels, increased by a prescribed percentage, would then become the reservation prices for each CBG.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжО+џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 21.б#XNє\  P}XP#бй d йг dd гОжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССUnder the GTE proposal, after submitting bids, every bidder that was within 15% of the low bid would be a successful bidder in the auction. If there were no other bidders within 15% of the low bid, the low bidder and next lowest bidder within 25% of the low bid would be a successful bidder. If no other bid was within 25% of the low bid, only the low bidder would be a successful bidder. Each successful bidder would then assume COLR obligations and receive perЉcustomer support equal to the highest level of support sought by a carrier with a successful bid. If there were only one winner, the new support would be set at the reservation price, УУi.e.ФФ, the current support increased by the prescribed percentage.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжХ,џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 21Љ22, 25.б#XNє\  P}XP#бй d йг dd гХж Starting with the lowest bidder, GTE would also allow bidders to withdraw from the auction after an initial set of the successful bidders was determined. If a bidder withdrew, there would be a new selection of successful bidders, treating the withdrawn bid as if it had never been made.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжО-џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 26.б#XNє\  P}XP#бй d йг dd гОж If the auction resulted in a new COLR for the area, either in addition to the incumbent or in place of the incumbent, the support levels and obligations for that area would be frozen for three years. No new entrants could receive universal service support during this time, although they could enter and provide service without such support. After the threeЉyear period, carriers could bid on the area again.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжО.џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 28.б#XNє\  P}XP#бй d йг dd гОжл Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССGTE's proposal would allow a COLR to transfer or sell its rights and obligations to any qualified carrier, as long as the number of COLRs in the CBG would not decrease.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжС/џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId. ФФat 28Љ29.б#XNє\  P}XP#бй d йг dd гСж The GTE proposal also requires penalties for any carrier that defaults on its COLR obligations. GTE also proposes that, when the incumbent LEC desires to exit the market at the current level of support and no other carrier volunteers to serve the market with a bid at or below the reservation price for the service area, the level of support would be raised by some designated percentage. GTE also recognizes that contingent bids may be appropriate if there are substantial economies of density and proposes that this could be addressed by requiring each bidder to submit a twoЉpart bid. The first element would reveal the amount of support it would require if it were the only bidder to receive support for serving the market. The second element would reveal what the bidder would require if it were one of multiple carriers receiving support for serving the market.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжХ0џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 29Љ30. б#XNє\  P}XP#бй d йг dd гХжл Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453922473Ї§ЏўўўўЏ§Ї_Toc453922473Ї§ЏўўўўЏ§Ї_Toc453922626Ї§ЏўўўўЏ§Ї_Toc453922626Ї§ЏўўўўЏ§Ї_Toc454003639Ї§ЏўўўўЏ§Ї_Toc454003639Ї§ЏўўўўЏ§Ї_Toc454026935Ї§ЏўўўўЏ§Ї_Toc454026935Ї§ЏўўўўЏ§Ї_Toc454163285Ї§ЏўўўўЏ§Ї_Toc454163285Ї§ЏўўўўЏ§Ї_Toc454240709Ї§ЏўўўўЏ§Ї_Toc454240709Ї§ЏўўўўЏ§Ї_Toc454357575Ї§ЏўўўўЏ§Ї_Toc454357575Ї§ЏўўўўЏ§Ї_Toc456170688Ї§ЏўўўўЏ§Ї_Toc456170688Ї§ЏўўўўЏ§Ї_Toc456674505Ї§ЏўўўўЏ§Ї_Toc456674505Ї§ЏўўўўЏ§Ї_Toc457815201Ї§ЏўўProposal of Ameritech ConsultantsўўЏ§Ї_Toc457815201Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССJeremy Bulow and Barry Nalebuff, consultants for Ameritech, propose that carriers be asked to compete for a portion of a lumpЉsum of supportлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжT1џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г These lumpЉsum payments to carriers are very different from the block grants that Congress rejected in this area. As the Joint Board observed, in quoting the Senate Working Group "[s]uch grants would be incompatible with the statute's architecture of discounts. . .[a]ffordability cannot be determined under a block grant approach." УУFirst Recommended DecisionФФ 12 FCC Rcd at 366Љ367 (УУcitingФФ Senate Working Group further comments at 2). Thus, both we and the Joint Board have rejected them as contrary to Congressional intent. Lump sum payments here would merely serve to pay carriers a fixed amount for providing the universal service specified by the Commission.б#XNє\  P}XP#бй d йг dd гTж in return for assuming COLR obligations over a subset of customers in a particular area. Under their proposal, all carriers, both COLR and nonЉCOLR, in a particular area would assign customers that they did not find profitable to serve to a COLR pool. After the bidding (for support and associated COLR obligation), the "unprofitable" customers (those no carrier found it profitable to serve) would be randomly assigned to the successful bidders. Bulow and Nalebuff advocate a sealedЉbid auction, in which a carrier's bid is the amount it would require to take 100 percent of the COLR pool in a particular area. The lowest bid wins and the carrier making that bid is awarded a preЉdesignated substantial fraction of the COLR pool, УУe.g.ФФ, 70%, along with an equal fraction of the total support. The second lowest bidder may choose to accept the remaining, smaller fraction of the COLR pool, along with a share of the total support equal to that smaller fraction.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж2џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Workshop on Competitve Bidding for Universal Service Support, March 13, 1997, FCC, Washington, DC.б#XNє\  P}XP#бй d йг dd гж If the second lowest bidder declines, the third lowest bidder would be offered the same choice. If all other bidders decline the opportunity, the lowest bidder would be assigned 100 percent of the COLR pool and 100 percent of the successful bid (УУi.e.ФФ, support). Under this proposal, the total support amount would equal the amount of the lowest bid. Bulow and Nalebuff would allow a COLR to trade its COLRЉpool customers to other carriers for cash or other service obligations. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССBulow and Nalebuff contend that if there is only one LEC in a region, then support should be set on a perЉsubscriber basis to provide an incentive for that carrier to serve the entire market.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗ3џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФб#XNє\  P}XP#бй d йг dd гЗж If, however, nonЉCOLRs without subsidies compete for individual customers against a COLR with a perЉsubscriber subsidy, the COLR will have an unfair advantage. Because of the perЉsubscriber subsidy the COLR will be able to win certain customers that an unsubsidized firm could serve at lower cost. Bulow and Nalebuff contend that fixedЉfee support avoids this distortion. As discussed above, a fixedЉfee subsidy could be applied to multiple COLRs by splitting the total award among the winning bidders in proportion to their COLR obligations. They also argue that, in the presence of economies of density, competitive bidding could lead to unnecessarily high support, because the most efficient bidder would tend to bid higher than necessary to protect against the possibility that it would be forced to share the COLR customers rather than bidding lower based on the assumption that it would serve 100 percent of the COLR pool. Bulow and Nalebuff thus suggest that the lowest bidder should be awarded a large fraction ЉЉ perhaps 70Љ75 percent ЉЉ of the COLR pool.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССBulow and Nalebuff argue, as well, that their suggested approach removes the problem that a competitor to the incumbent LEC will try to "cherry pick" the most profitable customers, which could occur under the GTE competitive bidding proposal. For the GTE proposal, the "cherry picking" problem prompts the suggestion that competitive bidding be conducted for areas that are small enough to have homogeneous costs of service (УУe.g.ФФ, Census Block Groups). Bulow and Nalebuff argue that their approach would allow competitive bidding over larger and more diverse areas than the GTE proposal would allow, which may be administratively simpler or less costly. They also argue that competitive bidding over larger areas would be preferable if there are cost synergies among small markets.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Heading 3 лб#єAє\  P}єP#бУ УУУззллг Ш гб#XNє\  P}XP#бй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССThe Kelly & Steinberg Auction Proposalл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССFrank Kelly and Richard Steinberg propose that perЉsubscriber support be given to carriers serving Р РblocksРР of customers. Under their proposal, a twoЉstage auction would set the amount of support over all blocks at the same time. They would base the initial support level for each block on either the historical cost of serving residential customers in the block or on a forwardЉlooking economic cost mechanism's prediction of such service costs, whichever is lower.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn the first stage of the auction, bidders would submit a sealed set of "contingent" bids on any blocks in which they were interested.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжє4џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Letter from Richard Steinberg, University of Cambridge, England to Evan Kwerel, FCC, June 23, 1997 (УУA Combinatorial Auction with Multiple Winners for COLR ФФ(June 9, 1997)) (hereinafter KellyЉSteinberg) at 4. Note: KellyЉSteinberg are posting the current version of their proposal at www.statslab.cam.ac.uk/~frank/AUCTIONб#XNє\  P}XP#бй d йг dd гєж The contingent bids would ask for different levels of support depending upon the number of carriers that were chosen to serve the block. For example, they might ask for $10 in support if they were the sole provider, $6 if they were to share the block with one other carrier, and $4.50 if they were to share the block with two bidders. Each bid would equal the lumpЉsum payment that the carrier sought for serving its share of customers in that block. The auctioneer would then determine the lowest total support payout for each possible number of successful bidders, УУe.g.ФФ, the lowest bid to be sole provider, the sum of the two lowest of those bids contingent on sharing the block with one other carrier, the sum of the three lowest of those bids contingent on sharing the block with two other carriers, eligible telecommunications carrier.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗ5џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФб#XNє\  P}XP#бй d йг dd гЗж The auctioneer would then adjust these levels of support by a preferential weighting factor that attempted to quantify the societal benefit of increasing the number of firms competing in a market.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗ6џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФб#XNє\  P}XP#бй d йг dd гЗж The auctioneer would then select the lowest adjusted support level and the associated successful bidder or bidders. The bidders with the lowest bids for the contingency of that number of successful bidders would be the first stage winners. For example, if the lowest payout was for two carriers then support would be available to the carriers with lowest bids for sharing support with one other carrier. If there were multiple winners in a block, each successful bidder would be assigned a proportional share of the block, УУi.e.ФФ, a "subЉblock."л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe second stage of the auction would consist of multiple rounds of open combinatorial bidding in which bidders offered to serve some combination of blocks and subЉblocks for less support than the successful bidders from the first or any previous round.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжН7џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 5.б#XNє\  P}XP#бй d йг dd гНж A valid combinatorial bid would consist of a list of requested support amounts, one support amount for each subЉblock in the combination. The total value of the combinatorial bid would be the sum of these support amounts. A valid combinatorial bid would need to seek less total support (УУi.e.ФФ, have a lower total value of the bid) than previous bids by an exact amount, УУi.e.ФФ, "bid increment." Initially it would need to improve on the combined bids of the first stage successful bidders. The rounds of the second stage would start by considering combinations across two blocks, and then progressively consider larger combinations. Bidders would not be allowed to make combinatorial bids over subЉblocks within a block. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTo be eligible to bid, bidders would need to remain Р РactiveРР in the auction, by either holding the low bid in the previous round or submitting an acceptable bid in the present round.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж—8џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУId.ФФб#XNє\  P}XP#бй d й—ж How active a bidder was in the present round would determine how many bids it could place in the next round.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжK9џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУId.ФФ at 5 (suggesting bidders initially should be required to remain active on subЉblocks covering 60 percent of the number of customers for which they wish to remain eligible to bid).б#XNє\  P}XP#бй d йKж The level of activity needed to be allowed to make bids in the next round would also change as the auction continued.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжR:џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУId.ФФ at 5Љ6 (suggesting that the activity requirement increase, as the second stage progresses, to 80 percent of the number of desired customers, and finally to 95 percent of such customers).б#XNє\  P}XP#бй d йRжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWhen secondЉstage bidding activity stopped, the auction would end and final successful bidders would be declared.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж;џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУId.ФФ at 6.б#XNє\  P}XP#бй d йж The successful bidders would receive perЉcustomer support base on their bid, for serving customers up to their designated proportion of a block, (УУe.g.ФФ, oneЉthird of the customers in a block if there had been three successful bidders of the block at the end of the first stage). Multiple successful bidders within the block would then compete for customers within a block. Unserved customers would be assigned to a successful bidder not serving its full share of customer is the block. A successful bidder would be free to attract the business of all the customer in a block, but would only receive support for its share, УУe.g.ФФ, oneЉthird, of the marked that it was assigned in the auction. Throughout the auction process, no bid waivers or bid withdrawals would be allowed.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж<џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл УУId.ФФ at 7.б#XNє\  P}XP#бй d йжл Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453922475Ї§ЏўўўўЏ§Ї_Toc453922475Ї§ЏўўўўЏ§Ї_Toc453922628Ї§ЏўўўўЏ§Ї_Toc453922628Ї§ЏўўўўЏ§Ї_Toc454003641Ї§ЏўўўўЏ§Ї_Toc454003641Ї§ЏўўўўЏ§Ї_Toc454026937Ї§ЏўўўўЏ§Ї_Toc454026937Ї§ЏўўўўЏ§Ї_Toc454163287Ї§ЏўўўўЏ§Ї_Toc454163287Ї§ЏўўўўЏ§Ї_Toc454240711Ї§ЏўўўўЏ§Ї_Toc454240711Ї§ЏўўўўЏ§Ї_Toc454357577Ї§ЏўўўўЏ§Ї_Toc454357577Ї§ЏўўўўЏ§Ї_Toc456170690Ї§ЏўўўўЏ§Ї_Toc456170690Ї§ЏўўўўЏ§Ї_Toc456674507Ї§ЏўўўўЏ§Ї_Toc456674507Ї§ЏўўўўЏ§Ї_Toc457815203Ї§ЏўўOther Competitive Bidding ProposalsўўЏ§Ї_Toc457815203Ї§Џўўл! Heading 3 !лззŒФ ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTime Warner notes that the Act appears to preclude the grant to any single carrier of exclusive rights to receive universal service support for serving a highЉcost area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжы=џџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Time Warner comments, CC Docket 96Љ45, Apr. 12, 1996 at 9Љ11.б#XNє\  P}XP#бй d йг dd гыж Therefore, Time Warner proposes that to encourage low bids, we reward the successful bidder by granting it 100% of the highЉcost support that it bids while all other bidders would receive a smaller percentage.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжО>џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 11.б#XNє\  P}XP#бй d йг dd гОж Time Warner also asserts that a competitive system cannot work unless all participants have equal access to relevant information about the market including costs and revenues.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжз?џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Time Warner comments, Aug. 2, 1996 at 42.б#XNє\  P}XP#бй d йг dd гзж Time Warner thus proposes to require incumbent LECs to disclose fully information about the market, including cost and revenues. Finally, Time Warner recommends periodic rebidding of areas to ensure that support levels reflect current costs and competitive conditions.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжС@џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 42Љ43.б#XNє\  P}XP#бй d йг dd гСж л Para# л б#XNє\  P}XP#бллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААаа л Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССMCI proposes a bidding system only for those few areas that are not served or areas where a carrier becomes unwilling to serve at the established universal service support level.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжгAџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г MCI comments, Apr. 12, 1996 at 18Љ19.б#XNє\  P}XP#бй d йг dd ггж MCI suggests that the Commission should join with the state to conduct the auction that will determine the level of support available in the area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗBџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФб#XNє\  P}XP#бй d йг dd гЗж The state would certify the carriers eligible to participate in the auction, and the eligible carriers would bid the amount of support they require to serve the area.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжОCџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 19.б#XNє\  P}XP#бй d йг dd гОж Any carrier willing to provide service in that area would then be eligible to receive support at the level submitted by the lowest bidder. If the incumbent was not a successful bidder, it would have to make its network available for resale at net book value to the successful bidder.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжвDџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г MCI comments, Aug. 2, 1996 at 21Љ22.б#XNє\  P}XP#бй d йг dd гвжл Para# л б#XNє\  P}XP#бллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААаа л Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССCitizens for a Sound Economy Foundation (CSE Foundation) suggests an open, multipleЉround auction that would allow bidders to gain information about the costs of providing service to different areas as they learn what other carriers have bid on those areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжѓEџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Citizens for a Sound Economy Foundation comments, May 7, 1996 at 8Љ9.б#XNє\  P}XP#бй d йг dd гѓж It suggests that higher bidders obtain reduced universal service support.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжОFџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId. ФФat 11.б#XNє\  P}XP#бй d йг dd гОж Finally, because the need to finance an investment over many years is particularly important when largeЉscale, capitalЉintensive projects are involved, CSE Foundation contends that it is important that the universal service support be guaranteed over some period of time, perhaps five years. It expresses concern, however, over GTE's proposal to exclude from support any new provider during the period of time the support level is guaranteed. As a solution, CSE Foundation tentatively suggests that the right to receive support for a particular market be made transferable.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжСGџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 13Љ14.б#XNє\  P}XP#бй d йг dd гСж л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453922476Ї§ЏўўўўЏ§Ї_Toc453922476Ї§ЏўўўўЏ§Ї_Toc453922629Ї§ЏўўўўЏ§Ї_Toc453922629Ї§ЏўўўўЏ§Ї_Toc454003642Ї§ЏўўўўЏ§Ї_Toc454003642Ї§ЏўўўўЏ§Ї_Toc454026938Ї§ЏўўўўЏ§Ї_Toc454026938Ї§ЏўўўўЏ§Ї_Toc454163288Ї§ЏўўўўЏ§Ї_Toc454163288Ї§ЏўўўўЏ§Ї_Toc454240712Ї§ЏўўўўЏ§Ї_Toc454240712Ї§ЏўўўўЏ§Ї_Toc454357578Ї§ЏўўўўЏ§Ї_Toc454357578Ї§ЏўўўўЏ§Ї_Toc456170691Ї§ЏўўўўЏ§Ї_Toc456170691Ї§ЏўўўўЏ§Ї_Toc456674508Ї§ЏўўўўЏ§Ї_Toc456674508Ї§ЏўўўўЏ§Ї_Toc457815204Ї§ЏўўHawaii Competitive Bidding MechanismўўЏ§Ї_Toc457815204Ї§Џўўл! Heading 3 !лззŒФ ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn 1995, the Hawaii legislature enacted a statute authorizing its PUC to select, via a competitive bidding process, single carriers of last resort to receive universal service funds for serving designated local exchange service areas.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжгHџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Haw. Rev. Stat. РР 269Љ43(a) & (b).б#XNє\  P}XP#бй d йг dd ггж Under the statute, once the PUC determines the level of support that is appropriate for each local exchange area, it must invite telecommunications providers to bid on these areas for providing service.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЭIџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Haw. Rev. Stat. РР 269Љ43(b).б#XNє\  P}XP#бй d йг dd гЭж The successful bidder becomes the COLR for the local exchange service area for "a period of time and upon conditions set by the commission."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗJџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФб#XNє\  P}XP#бй d йг dd гЗж In choosing the successful bidder, the PUC is required to take into account "the level of service to be provided, the investment commitment, and the length of the agreement, in addition to the other qualifications of the bidder."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗKџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФб#XNє\  P}XP#бй d йг dd гЗж The PUC requires that bidders' proposals contain projected rates for the initial tenЉyear period and expected subsidies and loans that will lower the rates for consumers, but selection of the new provider need not be made entirely on the basis of who submits the lowest bid; rather it may reflect a weighing of multiple factors, УУi.e.ФФ, "internal and external strengths."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжђLџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Hawaii PUC Decision & Order No. 14415, released December 13, 1995. б#XNє\  P}XP#бй d йг dd гђжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe first rural area in which the PUC authorized carriers to compete with the incumbent LEC, GTE Hawaiian Tel, was the Ka'u area on the island of Hawaii.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗMџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФб#XNє\  P}XP#бй d йг dd гЗж In April 1996, the PUC issued a Request for Proposal (RFP), specifying the technical, engineering, financial, and other requirements for bidders.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж"Nџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Hawaii PUC, Request for a Proposal to Provide Telecommunications Service for Ka'u, Island of Hawaii, April 30, 1996.б#XNє\  P}XP#бй d йг dd г"ж The RFP also articulated specific "internal strengths," "external strengths," and "miscellaneous indicia of fitness and ability" on which bidders would be evaluated.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЮOџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 12. Internal strengths include organization, financial backing, technical facilities, operations expertise, and management and administrative experience. External strengths include proposed rates and rate design, track record, alertness to consumer needs and desires, consumer preferences, impact on entities other than competing applicants, and local ownership control. Miscellaneous indicia include firstЉinЉfield status, firstЉinЉproposal process, quality of proposal, ongoing regulatory control, and overall general fitness.б#XNє\  P}XP#бй d йг dd гЮж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe PUC selected TelHawaii, Inc. to be the COLR for the Ka'u area,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжьPџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Hawaii PUC Decision & Order No. 14789, released July 15, 1996.б#XNє\  P}XP#бй d йг dd гьж but TelHawaii and GTE Hawaiian Tel thus far have been unable to conclude an agreement for the transfer or lease of GTE Hawaiian Tel's assets to TelHawaii for serving this area. GTE Hawaiian Tel sought reconsideration of the decision selecting TelHawaii as COLR, but the PUC subsequently held that it was necessary and in the public interest to condemn GTE Hawaiian Tel's assets and to allow TelHawaii to use these condemned assets in its operations as a public utility.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжлQџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Hawaii PUC Decision & Order No. 15602 (1997).б#XNє\  P}XP#бй d йг dd глж GTE Hawaiian Tel's appeal of this decision is now pending in the Hawaii Supreme Court.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжКRџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г We also note that, in response to an August 16, 1996 petition by TelHawaii, the Accounting and Audits Division of the FCC's Common Carrier Bureau issued an order creating a new study area containing a rural telephone exchange serving approximately 2,447 access lines in the Ka'u area and allowing TelHawaii to operate under rateЉofЉreturn regulation. In the Matter of Petition for Waivers filed by TelAlaska, inc. and TelHawaii, Inc., УУMemorandum Opinion and OrderФФ, DA 97Љ1508 (CCB, Acct'g & Audits Div.), released July 16, 1997. In this order, the Division denied TelHawaii's request for a waiver of Sections 36.611 and 36.612 of the Commission's rules to enable it to receive universal service support immediately upon transfer of GTE Hawaiian Tel's assets to TelHawaii.б#XNє\  P}XP#бй d йг dd гКжл Para# лŒб#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453922477Ї§ЏўўўўЏ§Ї_Toc453922477Ї§ЏўўўўЏ§Ї_Toc453922630Ї§ЏўўўўЏ§Ї_Toc453922630Ї§ЏўўўўЏ§Ї_Toc454003643Ї§ЏўўўўЏ§Ї_Toc454003643Ї§ЏўўўўЏ§Ї_Toc454026939Ї§ЏўўўўЏ§Ї_Toc454026939Ї§ЏўўўўЏ§Ї_Toc454163289Ї§ЏўўўўЏ§Ї_Toc454163289Ї§ЏўўўўЏ§Ї_Toc454240713Ї§ЏўўўўЏ§Ї_Toc454240713Ї§ЏўўўўЏ§Ї_Toc454357579Ї§ЏўўўўЏ§Ї_Toc454357579Ї§ЏўўўўЏ§Ї_Toc456170692Ї§ЏўўўўЏ§Ї_Toc456170692Ї§ЏўўўўЏ§Ї_Toc456674509Ї§ЏўўўўЏ§Ї_Toc456674509Ї§ЏўўўўЏ§Ї_Toc457815205Ї§ЏўўExamples From Foreign Countries: Chile & PeruўўЏ§Ї_Toc457815205Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn 1994, Chile's legislature passed a telecommunications law that established the Rural Telecommunications Development (RTD) Fund. Since 1995, Subsecretaria de Telecommunicaciones (SUBTEL), Chile's regulatory body, has allocated RTD fundsлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжtSџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г RTD funds come from the annual government budget and are allocated to SUBTEL. Ley General de Telecommunicaciones, No. 18.168, Title IV, Article 28A, "Del Fondo de Desarollo de Telecommunicaciones".б#XNє\  P}XP#бй d йг dd гtж to companies through an annual competitive bidding process. The competitive bidding process is initiated when SUBTEL, after consulting with local and regional governmental entities, issues an annual prioritized list of RTD projects. SUBTEL assigns an "RTD maximum subsidy" for each project and issues a public notice calling for technically qualified companies to submit bids for one or more RTD projects.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вждTџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSeeФФ Bjorn Wellenius, Extending Telecommunications Service to Rural Areas Р!Р The Chilean Experience, Viewpoint, The World Bank Group Note No. 105, Feb. 1997; SUBTEL de Chile. УУFuncionamientoФФ УУdel Fondo de Desarollo de las TelecommunicationsФФ. SUBTEL document, February, 1997.б#XNє\  P}XP#бй d йг dd гдж RTD funds can be used by the selected companies to subsidize between 1/4 and 1/3 of the initial investment costs of rural projects. Bids are submitted in a singleЉround format and opened during a public meeting, and the bid that has the lowest RTD support wins. If two or more of the competing companies submit the same low bid, the RTD project and support are assigned by lottery. Companies that receive RTD funds are not given any exclusive market rights to profitable customers in the areas they serve.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn Peru, in 1994, the Organismo Supervisor de la Inversion Privada de TelecommunicacionesУ У (Ф ФOSIPTEL), the Peruvian regulator that administers the Fund for Investment in Telecommunications (FITEL), stated that it would allocate FITEL funds through a competitive bidding process similar to Chile's.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЙUџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г FITEL funds come from a one percent tax on the gross revenues of all telecommunications companies. Texto Unico Ordenado de la Ley de Telecommunicaciones. Decreto No. 013Љ93ЉTCC. Articulo 12. УУMarco Legal de las TelecommunicacionesФФ, at 13, OSIPTEL, Nov. 1994.б#XNє\  P}XP#бй d йг dd гЙж Also that year, OSIPTEL was designing the selection parameters for the projects.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжfVџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г The FITEL program is intended to expand universal service by bringing telephone service to areas not currently served by Telefonica de Peru, the monopoly provider of telephone service.б#XNє\  P}XP#бй d йг dd гfжССССл Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453922478Ї§ЏўўўўЏ§Ї_Toc453922478Ї§ЏўўўўЏ§Ї_Toc453922631Ї§ЏўўўўЏ§Ї_Toc453922631Ї§ЏўўўўЏ§Ї_Toc454003644Ї§ЏўўўўЏ§Ї_Toc454003644Ї§ЏўўўўЏ§Ї_Toc454026940Ї§ЏўўўўЏ§Ї_Toc454026940Ї§ЏўўўўЏ§Ї_Toc454163290Ї§ЏўўўўЏ§Ї_Toc454163290Ї§ЏўўўўЏ§Ї_Toc454240714Ї§ЏўўўўЏ§Ї_Toc454240714Ї§ЏўўўўЏ§Ї_Toc454357580Ї§ЏўўўўЏ§Ї_Toc454357580Ї§ЏўўўўЏ§Ї_Toc456170693Ї§ЏўўўўЏ§Ї_Toc456170693Ї§ЏўўўўЏ§Ї_Toc456674510Ї§ЏўўўўЏ§Ї_Toc456674510Ї§ЏўўўўЏ§Ї_Toc457815206Ї§ЏўўSpectrum AuctionsўўЏ§Ї_Toc457815206Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn the Omnibus Budget Reconciliation Act of 1993, Congress amended the Communications Act of 1934 by adding Section 309(j), which granted the Commission authority, under certain circumstances, to employ competitive bidding to assign licenses to use portions of the electromagnetic spectrum. After adopting rules to govern this process,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжІWџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSee, e.g.,ФФ УУImplementation of Section 309(j) of the Communications ActЉCompetitive BiddingФФ,УУ ФФSecond Report and Order, PP Docket No. 93Љ253, 9 FCC Rcd 2348 (1994); УУImplementation of Section 309(j) of the Communications ActЉCompetitive BiddingФФ, ThirdУУ ФФReport and Order, PP Docket No. 93Љ253, 9 FCC Rcd 2941 (1994); and УУImplementation of Section 309(j) of the Communications ActЉCompetitive BiddingФФ,УУ ФФFifth Report and Order, PP Docket No. 93Љ253, 9 FCC Rcd 5532 (1994).б#XNє\  P}XP#бй d йг dd гІж the Commission began its spectrum auctions in 1994.л Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe first set of licenses to be auctioned authorized licensees to provide narrowband Personal Communications Services (PCS). Because of the likelihood that the values of these licenses were interdependent (УУi.e.ФФ, the value placed by a bidder on one license depends upon whether it also holds another license), the Commission chose to employ simultaneous, multipleЉround auctions to assign these licenses. The Commission began by auctioning a relatively small number of licenses, 10 nationwide narrowband PCS licenses, in July 1994. As the Commission gained experience, it gradually expanded the number of licenses included in each auction.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжCXџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г The largest auction conducted so far has been the D, E and F block broadband PCS auction, in which 1,479 licenses were put up for bid simultaneously.б#XNє\  P}XP#бй d йг dd гCж Thus far, the Commission has held twentyЉthree spectrum auctions, employing both simultaneous and sequential auction designs, and both oral outcry and electronic methods for bidding.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжOYџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Most of the Commission's spectrum auctions have been conducted electronically, using computer software developed by the Commission specifically for this purpose.б#XNє\  P}XP#бй d йг dd гOж Licenses for terrestrialЉbased mobile and fixed services (including the narrowband and broadband PCS services, the Specialized Mobile Radio Services, and the Wireless Communications Service), as well as for satellite broadcasting services (including the Direct Broadcast Satellite service and the Digital Audio Radio Service), have been assigned using competitive bidding. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTo fulfill the requirements of Section 309(j), we have adopted general rules and procedures governing the types of auction designs that may be employed for spectrum auctions.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжbZџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSee ФФSubpart Q of Part 1 of our rules, 47 C.F.R. РРРР 1.2101 УУet seq.ФФ In addition, the Commission has adopted serviceЉspecific rules that govern auctions of licenses in particular services. УУSee, e.g.,ФФ 47 C.F.R. РРРР 24.701 УУet seq.ФФ (rules for broadband PCS auctions), and 90 C.F.R. РРРР 90.801 УУet seq.ФФ (rules for 900 MHz SMR auctions). Since the competitive bidding for universal service support contemplated in the instant proceeding does not involve choosing from among mutually exclusive applications for licenses to use the electromagnetic spectrum, Section 309(j) of the Act, and the Commission's rules adopted pursuant thereto, would not apply.б#XNє\  P}XP#бй d йг dd гbж We have set eligibility rules, requiring that prospective bidders make preЉauction upfront payments,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжь[џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г In Section 1.2106 of the Commission's rules, 47 C.F.R. РР 1.2106, the Commission authorized the collection of upfront payments and set forth general rules concerning them. ServiceЉspecific rules require upfront payments in particular auctions. УУSee, e.g.,ФФ 47 C.F.R. РР 24.706 (upfront payment rule for broadband PCS auctions). УУPublic NoticeФФ, Report No. AUCЉ94Љ04, released September 19, 1994 (setting forth auction procedures, including activity requirements, bid increments and stopping rules, for the FCC's auction of A & B block broadband PCS licenses).б#XNє\  P}XP#бй d йг dd гьж and allowed alteration of competitive bidding mechanism details for each auction, including minimum levels of required bidding activity, minimum bid increments and stopping rules for ending the auction.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжG\џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSeeФФ 47 C.F.R. РР 1.2104. Specific bidding procedures for each auction are usually announced by way of a public notice issued prior to the auction. УУSee, e.g.ФФ, УУPublic NoticeФФ, Report No. AUCЉ94Љ04, released September 19, 1994 (setting forth auction procedures, including activity requirements, bid increments and stopping rules, for the FCC's auction of A & B block broadband PCS licenses).б#XNє\  P}XP#бй d йг dd гGж These rules are intended to ensure that in simultaneous multiple round auctions only sincere bidders participate and that auctions proceed at a reasonable pace and can be brought to a close in a rational manner.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe also have adopted rules that require payments in the event of bid withdrawal or default, so that bidders understand that they will be held to the amounts of their bids.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжR]џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSee, e.g.,ФФ 47 C.F.R. РР 1.2104(g) (general competitive bidding rules), and 47 C.F.R. РР 24.704 (bid withdrawal rule applicable to broadband PCS auctions).б#XNє\  P}XP#бй d йг dd гRж In general, a bidder who withdraws a high bid during the course of an auction will be subject to a payment calculated as the difference between the amount of the withdrawn bid and the amount of the successful bid the next time the license is offered by the Commission. Thus, no payment is required if the subsequent successful bid exceeds the withdrawn bid. If a successful bidder defaults or is disqualified after the close of an auction, that bidder must pay the amount already described and an additional three percent of the lesser of the defaulted bid amount and the subsequent successful bid. This additional payment is intended to encourage a bidder who has any doubt about its ability to make payment on a license to withdraw its bid before the auction closes, thereby giving others an opportunity to bid on that license.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССOur rules concerning spectrum auctions also include antiЉcollusion provisions that were designed to work in conjunction with existing antitrust laws and to ensure that each bidder in a spectrum auction has access to the same information about all joint arrangements into which other bidders may have entered. These rules prohibit bidders from cooperating, collaborating, discussing, or disclosing the substance of their bids or bidding strategies with other bidders unless they are members of a bidding consortium or joint bidding arrangement that has been identified on the preЉauction application.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЧ^џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г 47 C.F.R. РР 1.2105(c).б#XNє\  P}XP#бй d йг dd гЧж In addition, consistent with objectives for competitive bidding detailed in Section 309(j), there are rules to enable small businesses and businesses owned by members of minority groups and women, to overcome historical difficulties in gaining access to capital, thereby promoting opportunities for these groups to participate in the provision of spectrumЉbased services. These provisions included limiting eligibility to bid on licenses in "Entrepreneurs' Blocks" to companies below a certain size and making available bidding credits on certain licenses and installment payment plans that allow a successful bidder to spread out payment for a license over the license term.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжђ_џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSee generally ФФ47 C.F.R. РР 1.2110. Special provisions also have been adopted to aid "designated entities" in connection with spectrum auctions for particular services. УУSee, e.g.,ФФ 47 C.F.R. РР 24.309 (narrowband PCS); 47 C.F.R. РР 24.709 (broadband PCS); 47 C.F.R. РР 90.810УУ et seq.ФФ (900 MHz SMR).б#XNє\  P}XP#бй d йг dd гђжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Commission recently initiated a proceeding in which we will comprehensively examine our general competitive bidding rules for all auctionable services to identify how they can be changed to make our licensing processes more efficient.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжj`џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSeeФФ Amendment of Part 1 of the Commission's Rules, УУOrder, Memorandum Opinion and Order, and Notice of Proposed Rule MakingФФ, WT Docket No. 97Љ82, FCC 97Љ60 (rel. Feb. 28, 1997).б#XNє\  P}XP#бй d йг dd гjжл Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453922479Ї§ЏўўўўЏ§Ї_Toc453922479Ї§ЏўўўўЏ§Ї_Toc453922632Ї§ЏўўўўЏ§Ї_Toc453922632Ї§ЏўўўўЏ§Ї_Toc454003645Ї§ЏўўўўЏ§Ї_Toc454003645Ї§ЏўўўўЏ§Ї_Toc454026941Ї§ЏўўўўЏ§Ї_Toc454026941Ї§ЏўўўўЏ§Ї_Toc454163291Ї§ЏўўўўЏ§Ї_Toc454163291Ї§ЏўўўўЏ§Ї_Toc454240715Ї§ЏўўўўЏ§Ї_Toc454240715Ї§ЏўўўўЏ§Ї_Toc454357581Ї§ЏўўўўЏ§Ї_Toc454357581Ї§ЏўўўўЏ§Ї_Toc456170694Ї§ЏўўўўЏ§Ї_Toc456170694Ї§ЏўўўўЏ§Ї_Toc456674511Ї§ЏўўўўЏ§Ї_Toc456674511Ї§ЏўўўўЏ§Ї_Toc457815207Ї§ЏўўFTS2000ўўЏ§Ї_Toc457815207Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe contract for providing telecommunications services to the United States government ЉЉ called FTS2000 ЉЉ was awarded by the General Services Administration (GSA) in 1988 to two different firms: 60% to AT&T and 40% to US Sprint. The decision to divide the contract between the two lowest bidders and to divide it 60%Љ40% was suggested by Congressman Jack Brooks and GSA agreed to do so. GSA then asked Coleman Research Corporation (CRC), an engineering firm, to quantify and suggest how to minimize the deleterious effects of splitting the contract. CRC estimated that the employment of a second carrier would raise actual costs by about eight percent, but that varying the allocation percentages would not have any significant effect on total costs. CRC was unable to estimate the likely benefits. The RFP was released in January 1988.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж…aџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Mitretek УУex parteФФ meeting at the Federal Communications Commission, Washington, DC, Aug. 12, 1997, discussion with Robert R. Menna and David A. Garbin (dgarbin@mitretek.org). (Mitretek Aug. 12 УУex parteФФ).б#XNє\  P}XP#бй d йг dd г…жл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAlthough the contract was for ten years, there were two points in time where the two successful firms (AT&T and Sprint) had an opportunity to rebid to secure a larger share of the total contract. Under this price redetermination/service reallocation (PR/SR) provision, 40% of the market shares of the two firms, УУi.e.ФФ, 24% from AT&T and 16% from Sprint, were made subject to the rebidding with three possible results. If the two firms made similar bids then each firm would retain its current market share, but if one firm bid significantly less than the other, than that firm would capture the 40% of the contract that was now available. AT&T and Sprint both originally bid $.18 per minute. After the first rebidding both lowered their bids to $.14 per minute. After the second rebidding AT&T lowered its bid to $.07 per minute. Thus, when AT&T significantly underbid Sprint for the final three year period, AT&T captured 40% of the 40% Sprint market share leaving AT&T with 76% of the revenues and Sprint with only 24% of the revenues.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗbџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.б#XNє\  P}XP#бй d йФФг dd гЗжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССGSA's analysis of the contract found that splitting the contract was not as costly as they had expected because the size of the contract was large enough to permit multiple firms to operate at their minimum efficient scale. Furthermore, GSA found that one of the most significant reasons that AT&T had for bidding aggressively was to avoid the danger that it would be underbid in subsequent rounds and that the news of such a significant loss would be heavily publicized by the successful bidder, suggesting that the federal government no longer regarded AT&T as the best choice.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗcџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФб#XNє\  P}XP#бй d йг dd гЗжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССGSA is now considering how to implement the successor to FTS2000, so called FTS2001. GSA is considering whether it might permit as many as three firms to gain shares of federal revenues but, the number of successful bidders will depend on the differences between their bids.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗdџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФб#XNє\  P}XP#бй d йг dd гЗжл Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССўўЏ§Ї_Toc453922480Ї§ЏўўўўЏ§Ї_Toc453922480Ї§ЏўўўўЏ§Ї_Toc453922633Ї§ЏўўўўЏ§Ї_Toc453922633Ї§ЏўўўўЏ§Ї_Toc454003646Ї§ЏўўўўЏ§Ї_Toc454003646Ї§ЏўўўўЏ§Ї_Toc454026942Ї§ЏўўўўЏ§Ї_Toc454026942Ї§ЏўўўўЏ§Ї_Toc454163292Ї§ЏўўўўЏ§Ї_Toc454163292Ї§ЏўўўўЏ§Ї_Toc454240716Ї§ЏўўўўЏ§Ї_Toc454240716Ї§ЏўўўўЏ§Ї_Toc454357582Ї§ЏўўўўЏ§Ї_Toc454357582Ї§ЏўўўўЏ§Ї_Toc456170695Ї§ЏўўўўЏ§Ї_Toc456170695Ї§ЏўўўўЏ§Ї_Toc456674512Ї§ЏўўўўЏ§Ї_Toc456674512Ї§ЏўўўўЏ§Ї_Toc457815208Ї§ЏўўCable Franchise BiddingўўЏ§Ї_Toc457815208Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССLocal cable television franchising authorities in the United States have generally awarded cable television franchises by issuing RFPs which solicit competitive bids. A municipality establishes a cable franchise once it grants a company permission to string wires above or below the public streets within a set area for a set timeЉperiod.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжeџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г John Thorne, Peter Huber, УУFederal Broadband LawФФ РР4.5, at 229 (Boston: Little, Brown, 1995). б#XNє\  P}XP#бй d йг dd гж The RFP generally contains the area's minimum requirements for the municipality's desired cable service. It is published in a local newspaper and at least one national trade publication, after which companies have at least three months to prepare and submit their applications.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж=fџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Mark A. Zupan, УУNonЉPrice Concessions and the Effect of Franchise Bidding Schemes on Cable Company CostsФФ, 20 Applied Economics 305 (1989).б#XNє\  P}XP#бй d йг dd г=ж An average of four to five companies initially submit bids. Once the bidding period is over, local policymakers select the most promising few bids and then conduct hearings on them. Remaining bidders are given the opportunity to amend their proposals. The competition among remaining bidders ensures that the quality of service is high. A single successful bidder is usually awarded an exclusive, renewable contract, usually 15 years in duration.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжХgџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУId.ФФ at 305, 306.б#XNє\  P}XP#бй d йг dd гХж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССOnce the contract is awarded, the successful bidders and the municipality commence negotiations for the unresolved issues in the contract. Many view this franchising relationship as akin to direct regulation.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжHhџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Mark A. Zupan, УУThe Efficacy of Franchise Bidding Schemes in the Case of Cable Television: Some Systematic EvidenceФФ, 32 J.L. & Econ. 401, 403 (1989).б#XNє\  P}XP#бй d йг dd гHж Critics of the cable franchising system argue that the selection process is political and subjective.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЪiџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУSeeФФ Mark Nadel, УУCOMCAR: A Marketplace Cable Television Franchise StructureФФ, 20 Harv. J. On Legis. 541, 547 (1983) (commenting that selection procedure requires political maneuvering by applicants, in addition to the making of unrealistic promises for service by bidder). б#XNє\  P}XP#бй d йг dd гЪж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTo guarantee a cable franchisee's obligations to the municipality under a franchise agreement, the municipality generally collects a form of collateral. It may require performance bonds or security deposits, partially in the form of cash or municipal bonds, the remainder in a letter of credit. The collateral acts as a security for damages, losses, or expenditures that the municipality incurs as a result of the successful bidder's failure to comply with the contract, or pay all the funds due to the municipality.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжHjџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г Daniel L. Brenner, Monroe E. Price, and Michael I. Meyerson, УУCable Television and Other Nonbroadcast Video, Law and PolicyФФ, РР 3.07[8][c], (1997).б#XNє\  P}XP#бй d йг dd гHж л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иСССС ССўўЏ§Ї_Toc453922481Ї§ЏўўўўЏ§Ї_Toc453922481Ї§ЏўўўўЏ§Ї_Toc453922634Ї§ЏўўўўЏ§Ї_Toc453922634Ї§ЏўўўўЏ§Ї_Toc454003647Ї§ЏўўўўЏ§Ї_Toc454003647Ї§ЏўўўўЏ§Ї_Toc454026943Ї§ЏўўўўЏ§Ї_Toc454026943Ї§ЏўўўўЏ§Ї_Toc454163293Ї§ЏўўўўЏ§Ї_Toc454163293Ї§ЏўўўўЏ§Ї_Toc454240717Ї§ЏўўўўЏ§Ї_Toc454240717Ї§ЏўўўўЏ§Ї_Toc454357583Ї§ЏўўўўЏ§Ї_Toc454357583Ї§ЏўўўўЏ§Ї_Toc456170696Ї§ЏўўўўЏ§Ї_Toc456170696Ї§ЏўўўўЏ§Ї_Toc456674513Ї§ЏўўўўЏ§Ї_Toc456674513Ї§ЏўўўўЏ§Ї_Toc457815209Ї§ЏўўEssential Airline ServiceўўЏ§Ї_Toc457815209Ї§Џўўл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTo ensure that smaller communities always remain linked to the national transportation system after the passage of the Airline Deregulation Act of 1978, Congress established the Essential Air Service Program, which is administered by the Department of Transportation (Department).лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЭkџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г 49 U.S.C. РРРР 41731Љ41742.б#XNє\  P}XP#бй d йг dd гЭж Under the Program, if an airline wishes to terminate, suspend, or reduce its service to a particular area, the airline must file a 90Љday notice with the appropriate state aviation agency, officials in the affected community, and the Department. Before the 90Љday notice period ends, other carriers have the opportunity to propose to replace without support the incumbent carrier. If no carrier expresses interest in serving the area without support before the 90Љday notice period ends, the Department must solicit proposals for subsidized service.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССCarriers submitting proposals must carefully detail the calculations of their support need. The Department reviews all proposals, meets with each applicant to finalize their proposals, and then solicits the opinions of the affected community's members. The Department selects a new carrier after weighing factors that include the following: the community preferences; the amount of support required; the quality of proposed service; the applicant's financial stability; the applicant's reputation for reliability; and the applicant's marketing relationships with major carriers. The Department usually chooses a carrier that is then eligible to provide supported service for a twoЉyear period. As the end of the twoЉyear period approaches, the Department will either renegotiate the support rate with the incumbent and publish this tentative rate in an order to show cause, or solicit new proposals in the same manner used for replacing an incumbent as previously described.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллўўЏ§Ї_Toc457815210Ї§Џўўв X0УУФФX0УУФФ вжKlџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йУУФФ31лFootnote Refлб#єAє\  P}єP#бУУллй d йг cc гл#Footnote Ref#лб#єAє\  P}єP#бФФллг bb г Department of Transportation, Essential Air Service and Domestic Analysis Division, УУWhat is Essential Air Service? ФФ(May, 1997).б#XNє\  P}XP#бй d йг dd гKжл Para# л б#XNє\  P}XP#блллTitle ла xАИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Уллй Ш йўўЏ§Ї_Toc457815210Ї§ЏўўўўЏ§Ї_Toc457815210Ї§ЏўўлTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааФ Фб#XNє\  P}XP#бллй й лTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Уллй Ш йAPPENDIX E: ССARIZONA PROPOSAL CONCERNING UNIVERSAL SERVICE SUPPORT FOR INITIAL CONNECTION CHARGESўўЏ§Ї_Toc457815210Ї§ЏўўлTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааФ Фб#XNє\  P}XP#бллй йааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААаа лTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Уллй Ш йAPPENDIX F:ССINITIAL REGULATORY FLEXIBILITY ACT ANALYSISлTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааФ Фб#XNє\  P}XP#бллй йл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ 1 1 1 1 1 1 1 1 Œви‚иССObjectivesл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#бллг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССIn the 1996 Act, Congress directed the Commission to take steps to reform our existing universal service support mechanisms.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЈmџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС47 U.S.C. РР 254.б#XNє\  P}XP#бй d йЈж Specifically, Congress directed the Commission to devise methods to ensure that consumers in "all regions of the Nation,РР including Р РlowЉincome consumers and those in rural, insular and high cost areasРР have access to Р Рtelecommunications and information services.РРлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЎnџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РР254(b)(3).б#XNє\  P}XP#бй d йЎж Through decisions adopted over the past two years, the Commission has been striving to ensure that federal universal service support mechanisms for highЉcost areas, lowЉincome consumers, schools and libraries, and rural health care providers, enable consumers to obtain telecommunications services that would otherwise be prohibitively expensive.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжqoџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb гССУУFederalЉState Joint Board on Universal ServiceФФ, Notice of Proposed Rulemaking and Order Establishing a Joint Board, 12 FCC Rcd 18092 (1996) (УУMay 1996 NoticeФФ); Recommended Decision, 12 FCC Rcd 87 (Jt. Bd. 1996) (УУFirst Recommended Decision); ФФReport and Order, CC Docket No. 96Љ45, 12 FCC Rcd 8776 (1997) (УУFirst Report and OrderФФ), as corrected by Errata, CC Docket No. 96Љ45 (rel. June 4, 1997); Order on Reconsideration, 12 FCC Rcd 10095 (1997); Second Order on Reconsideration, 12 FCC Rcd 18400 (1997); Third Order on Reconsideration, 12 FCC Rcd 22801 (1997); Fourth Order on Reconsideration, 13 FCC Rcd 2372 (1997); Fifth Order on Reconsideration, 13 FCC Rcd 14915 (1998); Order and Order on Reconsideration, 13 FCC Rcd 13749 (1997); Second Recommended Decision, 13 FCC Rcd 24744 (1998); Sixth Order on Reconsideration, 13 FCC Rcd 22908 (1998); Seventh Order on Reconsideration, 13 FCC Rcd 19397 (1998); Eighth Order on Reconsideration, 13 FCC Rcd 25058 (1998); Ninth Order on Reconsideration, 14 FCC Rcd 377 (1998); Tenth Order on Reconsideration, FCC 99Љ46 (rel. Apr. 2, 1999); Eleventh Order on Reconsideration, FCC 99Љ49 (rel. May 28, 1999); Twelfth Order on Reconsideration, FCC 99Љ121 (rel. May 28, 1999); Thirteenth Order on Reconsideration; FCC 99Љ119 (rel. May 28, 1999); УУaffirmed in part, remanded in part and reversed in part, Texas Office of Public Utility Counsel v. FCCФФ, No. 97Љ60421 (5th Cir. Jul. 30, 1999).б#XNє\  P}XP#бй d йг dd гqж Notwithstanding these efforts, certain areas of the nation remain unserved or underserved, particularly insular and Indian tribal lands. Telephone penetration rates and facilities deployment in certain highЉcost areas, including tribal and insular areas, lag behind the penetration rates in the rest of the country.ўўЏ§ЇlastЇ§ЏўўўўЏ§ЇlastЇ§Џўў In this Further Notice, the Commission seeks comment on proposals designed to increase deployment of facilities necessary to provide the services supported by federal universal service support mechanisms in unserved and underserved areas and to increase subscribership among lowЉincome consumers in certain highЉcost areas. л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССLegal Basisл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Commission, in compliance with sections 1, 4, 214, 254, and 403 of the Act,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЪpџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС47 U.S.C. РРРР 151, 154, 214, 254, 403, and 410.б#XNє\  P}XP#бй d йЪж issues this Further Notice to examine mechanisms to promote deployment and subscribership in unserved and underserved areas, including tribal and insular areas. л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССDescription and Estimate of the Number of Small Entities To Which the Proposed Action May Applyл! Heading 3 !лззŒФ ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe RFA directs agencies to provide a description of and, where feasible, an estimate of the number of small entities that may be affected by the proposed rules, if adopted.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЎqџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС5 U.S.C. РР 603(b)(3). б#XNє\  P}XP#бй d йЎж The RFA generally defines the term "small entity" as having the same meaning as the terms "small business," "small organization," and "small governmental jurisdiction."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжВrџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССId.ФФ РР 601(6). б#XNє\  P}XP#бй d йВж In addition, the term "small business" has the same meaning as the term "small business concern" under the Small Business Act.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжsџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС5 U.S.C. РР 601(3) (incorporating by reference the definition of "small business concern" in 15 U.S.C. РР 632). Pursuant to the RFA, 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." 5 U.S.C. РР 601(3).б#XNє\  P}XP#бй d йж A small business concern is one that: (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).лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжМtџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССSmall Business Act, 15 U.S.C. РР 632.б#XNє\  P}XP#бй d йМж A small organization is generally "any notЉforЉprofit enterprise which is independently owned and operated and is not dominant in its field."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЎuџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС5 U.S.C. РР 601(4). б#XNє\  P}XP#бй d йЎж Nationwide, as of 1992, there were approximately 275,801 small organizations.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж:vџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС1992 Economic Census, U.S. Bureau of the Census, Table 6 (special tabulation of data under contract to Office of Advocacy of the U.S. Small Business Administration).б#XNє\  P}XP#бй d й:ж And finally, "Small governmental jurisdiction" generally means "governments of cities, counties, towns, townships, villages, school districts, or special districts, with a population of less than 50,000."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЋwџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС5 U.S.C. РР 601(5). б#XNє\  P}XP#бй d йЋж As of 1992, there were approximately 85,006 such jurisdictions in the United States.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжтxџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССU.S. Dept. of Commerce, Bureau of the Census, "1992 Census of Governments." б#XNє\  P}XP#бй d йтж This number includes 38,978 counties, cities, and towns; of these, 37,566, or 96 percent, have populations of fewer than 50,000.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжžyџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССIdФФ.б#XNє\  P}XP#бй d йžж The Census Bureau estimates that this ratio is approximately accurate for all governmental entities. Thus, of the 85,006 governmental entities, we estimate that 81,600 (91 percent) are small entities. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAs noted, under the Small Business Act, a "small business concern" is one that: (1) is independently owned and operated; (2) is not dominant in its field of operation; and (3) meets any additional criteria established by the Small Business Administration (SBA).лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжzџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС15 U.S.C. РР 632. УУSeeФФ, УУe.g.ФФ, УУBrown Transport Truckload, Inc. v. Southern Wipers, Inc.ФФ, 176 B.R. 82 (N.D. Ga. 1994).б#XNє\  P}XP#бй d йж The SBA has defined a small business for Standard Industrial Classification (SIC) categories 4812 (Radiotelephone Communications) and 4813 (Telephone Communications, Except Radiotelephone) to be small entities when they have no more than 1,500 employees.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЌ{џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС13 C.F.R. РР 121.201.б#XNє\  P}XP#бй d йЌж We first discuss the number of small telephone companies falling within these SIC categories, then attempt to refine further those estimates to correspond with the categories of telecommunications companies that are commonly used under our rules.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe most reliable source of information regarding the total numbers of common carrier and related providers nationwide, including the numbers of commercial wireless entities, appears to be data the Commission publishes annually in its УУCarrier LocatorФФ report, derived from filings made in connection with the Telecommunications Relay Service (TRS).лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж7|џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССFCC, УУCarrier Locator: Interstate Service ProvidersФФ, Figure 1 (Jan. 1999) (УУCarrier LocatorФФ). УУSee alsoФФ 47 C.F.R. РР 64.601 УУet seq.ФФ (TRS).б#XNє\  P}XP#бй d й7ж According to data in the most recent report, there are 3,604 interstate carriers.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЕ}џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССУУCarrier LocatorФФ at Fig. 1.б#XNє\  P}XP#бй d йЕж These carriers include, УУinter aliaФФ, local exchange carriers, wireline carriers and service providers, interexchange carriers, competitive access providers, operator service providers, pay telephone operators, providers of telephone toll service, providers of telephone exchange service, and resellers. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWe have included small incumbent LECs in this present RFA analysis. As noted above, a "small business" under the RFA is one that, УУinter aliaФФ, meets the pertinent small business size standard (УУe.g.ФФ, a telephone communications business having 1,500 or fewer employees), and "is not dominant in its field of operation."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЋ~џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл СС5 U.S.C. РР 601(3).б#XNє\  P}XP#бй d йЋж The SBA's Office of Advocacy contends that, for RFA purposes, small incumbent LECs are not dominant in their field of operation because any such dominance is not "national" in scope.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЗџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССLetter УУfromФФ Jere W. Glover, Chief Counsel for Advocacy, SBA, УУtoФФ 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." УУSeeФФ 15 U.S.C. РР 632(a) (Small Business Act); 5 U.S.C. РР 601(3) (RFA). SBA regulations interpret "small business concern" to include the concept of dominance on a national basis. 13 C.F.R. РР 121.102(b). Since 1996, out of an abundance of caution, the Commission has included small incumbent LECs in its regulatory flexibility analyses. УУImplementation of the Local Competition Provisions of the Telecommunications Act of 1996ФФ, CC Docket, 96Љ98, First Report and Order, 11 FCC Rcd 15499, 16144-45 (1996).б#XNє\  P}XP#бй d йЗж We have therefore included small incumbent LECs in this RFA analysis, although we emphasize that this RFA action has no effect on FCC analyses and determinations in other, nonЉRFA contexts. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССTotal Number of Telephone Companies Affected. ФФ The United States Bureau of the Census ("the Census Bureau") reports that, at the end of 1992, there were 3,497 firms engaged in providing telephone services, as defined therein, for at least one year.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж\€џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССUnited States Department of Commerce, Bureau of the Census, УУ1992 Census of TransportationФФ, Communications, and Utilities: Establishment and Firm Size, at Firm Size 1-123 (1995) ("1992 Census").б#XNє\  P}XP#бй d й\ж This number contains a variety of different categories of carriers, including local exchange carriers, interexchange carriers, competitive access providers, cellular carriers, mobile service carriers, operator service providers, pay telephone operators, PCS providers, covered SMR providers, and resellers. It seems certain that some of those 3,497 telephone service firms may not qualify as small entities or small incumbent LECs because they are not "independently owned and operated."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЎџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС15 U.S.C. РР 632(a)(1).б#XNє\  P}XP#бй d йЎж For example, a PCS provider that is affiliated with an interexchange carrier having more than 1,500 employees would not meet the definition of a small business. It seems reasonable to conclude, therefore, that fewer than 3,497 telephone service firms are small entity telephone service firms or small incumbent LECs that may be affected by the decisions and actions considered in the Further Notice.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWireline Carriers and Service Providers.ФФ SBA has developed a definition of small entities for telephone communications companies other than radiotelephone companies. The Census Bureau reports that, there were 2,321 such telephone companies in operation for at least one year at the end of 1992.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжТ‚џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС1992 Census, УУsupraФФ, at Firm Size 1-123.б#XNє\  P}XP#бй d йТж According to SBA's definition, a small business telephone company other than a radiotelephone company is one employing no more than 1,500 persons.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжНƒџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС13 C.F.R. РР 121.201, SIC Code 4813. б#XNє\  P}XP#бй d йНж All but 26 of the 2,321 nonЉradiotelephone companies listed by the Census Bureau were reported to have fewer than 1,000 employees. Thus, even if all 26 of those companies had more than 1,500 employees, there would still be 2,295 nonЉradiotelephone companies that might qualify as small entities or small incumbent LECs. Although it seems certain that some of these carriers are not independently owned and operated, we are unable at this time to estimate with greater precision the number of wireline carriers and service providers that would qualify as small business concerns under SBA's definition. Consequently, we estimate that there are fewer than 2,295 small entity telephone communications companies other than radiotelephone companies that may be affected by the decisions and actions considered in the Further Notice.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССLocal Exchange CarriersФФ, УУInterexchange Carriers, Competitive Access Providers, Operator Service Providers, and ResellersФФ. Neither the Commission nor SBA has developed a definition of small local exchange carriers (LECs), interexchange carriers (IXCs), competitive access providers (CAPs), operator service providers (OSPs), or resellers. The closest applicable definition for these carrierЉtypes under SBA rules is for telephone communications companies other than radiotelephone (wireless) companies.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЛ„џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС13 C.F.R. РР 121.210, SIC Code 4813.б#XNє\  P}XP#бй d йЛж The most reliable source of information regarding the number of these carriers nationwide of which we are aware appears to be the data that we collect annually in connection with the Telecommunications Relay Service (TRS).лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжф…џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSeeФФ 47 C.F.R. РР 64.601 УУet seq.ФФ; УУCarrier LocatorФФ at Fig. 1.б#XNє\  P}XP#бй d йфж According to our most recent data, there are 1,410 LECs, 151 IXCs, 129 CAPs, 32 OSPs, and 351 resellers.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжn†џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССCarrier LocatorФФ at Fig. 1. The total for resellers includes both toll resellers and local resellers. The TRS category for CAPs also includes competitive local exchange carriers (CLECs) (total of 129 for both).б#XNє\  P}XP#бй d йnж Although it seems certain that some of these carriers are not independently owned and operated, or have more than 1,500 employees, we are unable at this time to estimate with greater precision the number of these carriers that would qualify as small business concerns under SBA's definition. Consequently, we estimate that there are fewer than 1,410 small entity LECs or small incumbent LECs, 151 IXCs, 129 CAPs, 32 OSPs, and 351 resellers that may be affected by the decisions and actions considered in the Further Notice.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWireless (Radiotelephone) Carriers.ФФ SBA has developed a definition of small entities for radiotelephone (wireless) companies. The Census Bureau reports that there were 1,176 such companies in operation for at least one year at the end of 1992.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж\‡џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССUnited States Department of Commerce, Bureau of the Census, УУ1992 Census of TransportationФФ, Communications, and Utilities: Establishment and Firm Size, at Firm Size 1-123 (1995) ("1992 Census").б#XNє\  P}XP#бй d й\ж According to SBA's definition, a small business radiotelephone company is one employing no more than 1,500 persons.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжНˆџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС13 C.F.R. РР 121.201, SIC Code 4812. б#XNє\  P}XP#бй d йНж The Census Bureau also reported that 1,164 of those radiotelephone companies had fewer than 1,000 employees. Thus, even if all of the remaining 12 companies had more than 1,500 employees, there would still be 1,164 radiotelephone companies that might qualify as small entities if they are independently owned are operated. Although it seems certain that some of these carriers are not independently owned and operated, we are unable at this time to estimate with greater precision the number of radiotelephone carriers and service providers that would qualify as small business concerns under SBA's definition. Consequently, we estimate that there are fewer than 1,164 small entity radiotelephone companies that may be affected by the decisions and actions considered in the Further Notice.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССCellular, PCS, SMR and Other Mobile Service Providers.ФФ In an effort to further refine our calculation of the number of radiotelephone companies that may be affected by the rules adopted herein, we consider the data that we collect annually in connection with the TRS for the subcategories Wireless Telephony (which includes Cellular, PCS, and SMR) and Other Mobile Service Providers. Neither the Commission nor the SBA has developed a definition of small entities specifically applicable to these broad subcategories, so we will utilize the closest applicable definition under SBA rules ЉЉ which, for both categories, is for telephone companies other than radiotelephone (wireless) companies.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжž‰џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССId.ФФб#XNє\  P}XP#бй d йžж To the extent that the Commission has adopted definitions for small entities providing PCS and SMR services, we discuss those definitions below. According to our most recent TRS data, 732 companies reported that they are engaged in the provision of Wireless Telephony services and 23 companies reported that they are engaged in the provision of Other Mobile Services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЕŠџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССCarrier LocatorФФ at Fig. 1.б#XNє\  P}XP#бй d йЕж Although it seems certain that some of these carriers are not independently owned and operated, or have more than 1,500 employees, we are unable at this time to estimate with greater precision the number of Wireless Telephony Providers and Other Mobile Service Providers, except as described below, that would qualify as small business concerns under SBA's definition. Consequently, we estimate that there are fewer than 732 small entity Wireless Telephony Providers and fewer than 23 small entity Other Mobile Service Providers that might be affected by the decisions and actions considered in the Further Notice.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССBroadband PCS Licensees.ФФ The broadband 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 less than $40 million in the three previous calendar years.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЮ‹џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSeeФФ УУAmendment of Parts 20 and 24 of the Commission's Rules ЉЉ Broadband PCS Competitive Bidding and the Commercial Mobile Radio Service Spectrum CapФФ, Report and Order, FCC 96Љ278, WT Docket No. 96Љ59, РРРР 57Љ60 (June 24, 1996), 61 FR 33859 (July 1, 1996); УУsee alsoФФ 47 C.F.R. РР 24.720(b).б#XNє\  P}XP#бй d йЮж 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.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЋŒџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССId.ФФ, at РР 60.б#XNє\  P}XP#бй d йЋж These regulations defining "small entity" in the context of broadband PCS auctions have been approved by SBA.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж;џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССImplementation of Section 309(j) of the Communications Act ЉЉ Competitive BiddingФФ, PP Docket No. 93Љ253, Fifth Report and Order, 9 FCC Rcd 5532, 5581Љ84 (1994).б#XNє\  P}XP#бй d й;ж No small businesses within the SBAЉapproved definition 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% of the 1,479 licenses for Blocks D, E, and F. However, licenses for Blocks C through F have not been awarded fully, therefore there are few, if any, small businesses currently providing PCS services. Based on this information, we estimate that the number of small broadband PCS licenses will include the 90 winning C Block bidders and the 93 qualifying bidders in the D, E, and F blocks, for a total of 183 small PCS providers as defined by SBA and the Commissioner's auction rules.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССSMR Licensees. ФФ Pursuant to 47 C.F.R. РР 90.814(b)(1), the Commission has defined "small entity" in auctions for geographic area 800 MHz and 900 MHz SMR licenses as a firm that had average annual gross revenues of less than $15 million in the three previous calendar years. The definition of a "small entity" in the context of 800 MHz SMR has been approved by the SBA,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжŽџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSee Amendment of Parts 2 and 90 of the Commission's Rules to Provide for the Use of 200 Channels Outside the Designated Filing Areas in the 896Љ901 MHz and the 935Љ940 MHz Bands Allotted to the Specialized Mobile Radio PoolФФ, PR Docket No. 89Љ583, Second Order on Reconsideration and Seventh Report and Order, 11 FCC Rcd 2639, 2693Љ702 (1995); УУAmendment of Part 90 of the Commission's Rules to Facilitate Future Development of SMR Systems in the 800 MHz Frequency BandФФ, PR Docket No. 93Љ144, First Report and Order, Eighth Report and Order, and Second Further Notice of Proposed Rulemaking, 11 FCC Rcd 1463 (1995).б#XNє\  P}XP#бй d йж and approval for the 900 MHz SMR definition has been sought. The proposed rules may apply to SMR providers in the 800 MHz and 900 MHz bands that either hold geographic area licenses or have obtained extended implementation authorizations. We do 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 less than $15 million. Consequently, we estimate, for purposes of this IRFA, that all of the extended implementation authorizations may be held by small entities, some of which may be affected by the decisions and actions considered in the Further Notice.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe Commission recently held auctions for geographic area licenses in the 900 MHz SMR band. There were 60 winning bidders who qualified as small entities in the 900 MHz auction. Based on this information, we estimate that the number of geographic area SMR licensees that may be affected by the decisions and actions considered in the Notice includes these 60 small entities. No auctions have been held for 800 MHz geographic area SMR licenses. Therefore, no small entities currently hold these licenses. A total of 525 licenses will be awarded for the upper 200 channels in the 800 MHz geographic area SMR auction. The Commission, however, has not yet determined how many licenses will be awarded for the lower 230 channels in the 800 MHz geographic area SMR auction. There is no basis, moreover, on which to estimate how many small entities will win these licenses. Given that nearly all radiotelephone companies have fewer than 1,000 employees and that no reliable estimate of the number of prospective 800 MHz licensees can be made, we estimate, for purposes of this IRFA, that all of the licenses may be awarded to small entities, some of which may be affected by the decisions and actions considered in the Further Notice.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иСС220 MHz Radio Service ЉЉ Phase I LicenseesФФ. The 220 MHz service has both Phase I and Phase II licenses. 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 definition of 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 definition under the SBA rules applicable to Radiotelephone Communications companies.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж+џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС13 C.F.R. РР 121.201, SIC Code 4812. This definition provides that a small entity is a radiotelephone company employing no more than 1,500 persons.б#XNє\  P}XP#бй d й+ж According to the Bureau of the Census, only 12 radiotelephone firms out of a total of 1,178 such firms which operated during 1992 had 1,000 or more employees.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжŒџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССU.S. Bureau of the Census, U.S. Department of Commerce, 1992 Census of Transportation, Communications, and Utilities, UC92-S-1, Subject Series, Establishment and Firm Size, Table 5, Employment Size of Firms; 1992, SIC code 4812 (issued May 1995).б#XNє\  P}XP#бй d йŒж Therefore, if this general ratio continues to 1999 in the context of Phase I 220 MHz licensees, we estimate that nearly all such licensees are small businesses under the SBA's definition.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иСС220 MHz Radio Service ЉЉ Phase II LicenseesФФ. The Phase II 220 MHz service is a new service, and is subject to spectrum auctions. In the 220 MHz УУThird Report and OrderФФ we adopted criteria for defining small businesses and very small businesses for purposes of determining their eligibility for special provisions such as bidding credits and installment payments.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжš‘џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-70, at paras. 291- 295 (1997). The SBA has approved these definitions. УУSeeФФ Letter from A. Alvarez, Administrator, SBA, to D. Phythyon, Chief, Wireless Telecommunications Bureau, FCC (Jan. 6, 1998).б#XNє\  P}XP#бй d йšж We have defined 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 defined as 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.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжз’џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС220 MHz Third Report and Order, 12 FCC Rcd at 11068-69, para. 291.б#XNє\  P}XP#бй d йзж An auction of Phase II licenses commenced on September 15, 1998, and closed on October 22, 1998.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж“џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSee generallyФФ Public Notice, "220 MHz Service Auction Closes," Report No. WT 98-36 (Wireless Telecom. Bur. Oct. 23, 1998).б#XNє\  P}XP#бй d йж 908 licenses were auctioned in 3 different-sized geographic areas: three nationwide licenses, 30 Regional Economic Area Group Licenses, and 875 Economic Area (EA) Licenses. Of the 908 licenses auctioned, 693 were sold. Companies claiming small business status won: one of the Nationwide licenses, 67% of the Regional licenses, and 54% of the EA licenses. As of January 22, 1999, the Commission announced that it was prepared to grant 654 of the Phase II licenses won at auction.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжR”џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССPublic Notice, "FCC Announces It is Prepared to Grant 654 Phase II 220 MHz Licenses After final Payment is Made," Report No. AUCЉ18ЉH, DA No. 99Љ229 (Wireless Telecom. Bur. Jan. 22, 1999). б#XNє\  P}XP#бй d йRж A reauction of the remaining, unsold licenses was completed on June 30, 1999, with 16 bidders winning 222 of the Phase II licenses.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж'•џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССPublic Notice, "Phase II 220 MHz Service Spectrum Auction Closes," Report No. AUCЉ99Љ24ЉE, DA No. 99Љ1287 (Wireless Telecom. Bur. July 1, 1999). б#XNє\  P}XP#бй d й'ж As a result, we estimate that 16 or fewer of these final winning bidders are small or very small businesses. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССPagingФФ. On June 7, 1999, the Wireless Telecommunications Bureau announced the first in a series of auctions of paging licenses, the first to commence on December 7, 1999.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж;–џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССPublic Notice, "First Paging Service Spectrum Auction Scheduled for December 7, 1999," Report No. AUCЉ99Љ26ЉA, DA No. 99Љ1103 (Wireless Telecom. Bur. June 7, 1999). б#XNє\  P}XP#бй d й;ж The Bureau has proposed that the first auction be composed of 2,499 licenses.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжž—џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССId.ФФб#XNє\  P}XP#бй d йžж The Commission utilizes a twoЉtiered definition of small businesses in the context of auctioning licenses in the Common Carrier Paging and exclusive Private Carrier Paging services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж ˜џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSeeФФ 47 C.F.R. РР 20.9(a)(1) (noting that private paging services may be treated as common carriage services).б#XNє\  P}XP#бй d й ж A small business is defined as either (1) an entity that, together with its affiliates and controlling principals, has average gross revenues for the three preceding years of not more than $3 million, or (2) an entity that, together with affiliates and controlling principals, has average gross revenues for the three preceding calendar years of not more than $15 million. The SBA has approved this definition.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж.™џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSeeФФ Letter from A. Alvarez, Administrator, SBA, to A.J. Zoslov, Chief, Auctions Division, Wireless Telecommunications Bureau, FCC (Dec. 2, 1998). б#XNє\  P}XP#бй d й.ж At present, there are approximately 24,000 Private Paging licenses and 74,000 Common Carrier Paging licenses. In addition, according to the most recent УУCarrier LocatorФФ data, 137 carriers reported that they were engaged in the provision of either paging or messaging services, which are placed together in the data.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЕšџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССCarrier LocatorФФ at Fig. 1.б#XNє\  P}XP#бй d йЕж Because the auction has yet to occur, we do not have data specifying the number of winning bidders that will meet the above small business definition. Also, we will assume that there currently are 137 or fewer small business paging carriers.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССNarrowband PCSФФ. The Commission has auctioned nationwide and regional licenses for narrowband PCS. There are 11 nationwide and 30 regional licensees for narrowband PCS. The Commission does not have sufficient information to determine whether any of these licensees are small businesses within the SBAЉapproved definition for radiotelephone companies. At present, there have been no auctions held for the major trading area (MTA) and basic trading area (BTA) narrowband PCS licenses. The Commission anticipates a total of 561 MTA licenses and 2,958 BTA licenses will be awarded by auction. Such auctions have not yet been scheduled, however. Given that nearly all radiotelephone companies have no more than 1,500 employees and that no reliable estimate of the number of prospective MTA and BTA narrowband licensees can be made, we assume, for purposes of this IRFA, that all of the licenses will be awarded to small entities, as that term is defined by the SBA.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССRural Radiotelephone ServiceФФ. The Commission has not adopted a definition of small entity specific to the Rural Radiotelephone Service.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжэ›џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССThe service is defined in section 22.99 of the Commission's rules, 47 C.F.R. РР 22.99.б#XNє\  P}XP#бй d йэж A significant subset of the Rural Radiotelephone Service is the Basic Exchange Telephone Radio Systems (BETRS).лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжœџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССBETRS is defined in sections 22.757 and 22.759 of the Commission's rules, 47 C.F.R. РРРР 22.757, 22.759.б#XNє\  P}XP#бй d йж We will use the SBA's definition applicable to radiotelephone companies, УУi.e.ФФ, an entity employing no more than 1,500 persons.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжНџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС13 C.F.R. РР 121.201, SIC Code 4812. б#XNє\  P}XP#бй d йНж There are approximately 1,000 licensees in the Rural Radiotelephone Service, and we estimate that almost all of them qualify as small entities under the SBA's definition.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССAirЉGround Radiotelephone ServiceФФ. The Commission has not adopted a definition of small entity specific to the AirЉGround Radiotelephone Service.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжэžџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССThe service is defined in section 22.99 of the Commission's rules, 47 C.F.R. РР 22.99.б#XNє\  P}XP#бй d йэж Accordingly, we will use the SBA's definition applicable to radiotelephone companies, УУi.e.ФФ, an entity employing no more than 1,500 persons.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЛŸџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС13 C.F.R. РР 121.201, SIC Code 4812.б#XNє\  P}XP#бй d йЛж There are approximately 100 licensees in the AirЉGround Radiotelephone Service, and we estimate that almost all of them qualify as small entities under the SBA definition. л Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССPrivate Land Mobile Radio (PLMR)ФФ. PLMR systems, also known as Private Mobile Radio Service (PMRS) systems, serve an essential role in a range of industrial, business, land transportation, and public safety activities.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSeeФФ 47 C.F.R. РР 20.9(a)(2) (noting that certain Industrial/Business Pool service may be treated as common carriage service).б#XNє\  P}XP#бй d йж These radios are used by companies of all sizes operating in all U.S. business categories. The Commission has not developed a definition of small entity specifically applicable to PLMR licensees due to the vast array of PLMR users. For the purpose of determining whether a licensee is a small business as defined by the SBA, each licensee would need to be evaluated within its own business area. The Commission is unable at this time to estimate the number of, if any, small businesses that could be impacted by the proposed rules. However, the Commission's 1994 Annual Report on PLMRsлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжьЁџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССFederal Communications Commission, УУ60th Annual Report, Fiscal Year 1994ФФ, at 116. б#XNє\  P}XP#бй d йьж indicates that at the end of fiscal year 1994 there were 1,087,267 licensees operating 12,481,989 transmitters in the PLMR bands below 512 MHz. Because any entity engaged in a commercial activity is eligible to hold a PLMR license, the proposed rules in this context could potentially impact any small U.S. business that chooses to become licensed in this service. On July 21, 1999, the Wireless Telecommunications Bureau requested public comment on whether the licensing of PMRS frequencies in the 800 MHz band for commercial SMR use would serve the public interest.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжВЂџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССPublic Notice, "Wireless Telecommunications Bureau Incorporates Nextel Communications, Inc. Waiver Record into WT Docket No. 99Љ87: Seeks Comment on Licensing of PMRS Channels in the 800 MHz Band for Use in Commercial SMR Systems," DA 99Љ1431 (Wireless Telecom. Bureau July 21, 1999).б#XNє\  P}XP#бй d йВж л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССFixed Microwave ServicesФФ. Microwave services include common carrier,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжхЃџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС47 C.F.R. РР 101 УУet seq.ФФ (formerly, Part 21 of the Commission's rules). б#XNє\  P}XP#бй d йхж private-operational fixed,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж;Єџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#блллFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССPersons eligible under Parts 80 and 90 of the Commission's rules can use Private OperationalЉFixed Microwave services. УУSeeФФ 47 C.F.R. Parts 80 and 90. Stations in this service are called operationalЉfixed to distinguish them from common carrier and public fixed stations. Only the licensee may use the operationalЉfixed station, and only for communications related to the licensee's commercial, industrial, or safety operations.б#XNє\  P}XP#бй d й;ж and broadcast auxiliary radio services.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжšЅџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССAuxiliary Microwave Service is governed by Part 74 of the Commission's Rules. УУSeeФФ 47 C.F.R. РР 74 УУet seq.ФФ 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 TV pickups, which relay signals from a remote location back to the studio. б#XNє\  P}XP#бй d йšж At present, there are approximately 22,015 common carrier fixed licensees in the microwave services. The Commission has not yet defined a small business with respect to microwave services. For purposes of this IRFA, we will utilize the SBA's definition applicable to radiotelephone companies ЉЉ УУi.e.ФФ, an entity with no more than 1,500 persons.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЛІџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС13 C.F.R. РР 121.201, SIC Code 4812.б#XNє\  P}XP#бй d йЛж We estimate, for this purpose, that all of the Fixed Microwave licensees (excluding broadcast auxiliary licensees) would qualify as small entities under the SBA definition for radiotelephone companies.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССOffshore Radiotelephone ServiceФФ. This service operates on several UHF TV broadcast channels that are not used for TV broadcasting in the coastal area of the states bordering the Gulf of Mexico.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЇџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССThis service is governed by Subpart I of Part 22 of the Commission's Rules. УУSeeФФ 47 C.F.R. РРРР 22.1001 - 22.1037.б#XNє\  P}XP#бй d йж At present, there areУ У Ф Фapproximately 55 licensees in this service. We are unable at this time to estimate the number of licensees that would qualify as small entities under the SBA's definition for radiotelephone communications.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWireless Communications ServicesФФ. This service can be used for fixed, mobile, radio location and digital audio broadcasting satellite uses. The Commission defined "small business" for the wireless communications services (WCS) auction as an entity with average gross revenues of $40 million for each of the three preceding years, and a "very small business" as an entity with average gross revenues of $15 million for each of the three preceding years. The Commission auctioned geographic area licenses in the WCS service. In the auction, there were seven winning bidders that qualified as very small business entities, and one that qualified as a small business entity. We conclude that the number of geographic area WCS licensees that may be affected by the decisions and actions considered in the Further Notice includes these eight entities.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бУУааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССRural Health Care ProvidersФФ. Neither the Commission nor the SBA has developed a definition of small, rural health care providers. Section 254(h)(5)(B) defines the term "health care provider" and sets forth the seven categories of health care providers eligible to receive universal service support.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЛЈџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллУУССSeeФФ 47 U.S.C. РР 254(h)(5)(B).б#XNє\  P}XP#бй d йЛж We estimate that there are: (1) 625 "post-secondary educational institutions offering health care instruction, teaching hospitals, and medical schools," including 403 rural community colleges,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж&Љџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССLetter from Kent A. Phillippe, American Association of Community Colleges to John Clark, FCC, dated March 31, 1997 (AACC March 31 ex parte at 2).б#XNє\  P}XP#бй d й&ж 124 medical schools with rural programs,лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж Њџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССLetter from Donna J. Williams, Ass'n of American Medical Colleges, to John Clark, FCC, dated September 9, 1996 (AAMC September 9 ex parte).б#XNє\  P}XP#бй d й ж and 98 rural teaching hospitals;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЋџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССLetter from Kevin G. Serrin, Ass'n of American Medical Colleges, to John Clark, FCC, dated September 5, 1996 (AAMC September 5 ex parte).б#XNє\  P}XP#бй d йж (2) 1,200 "community health centers or health centers providing health care to migrants";лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж)Ќџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССLetter from Richard C. Bohrer, Division of Community and Migrant Health, HHS, to John Clark, FCC, dated March 31, 1997 (HHS March 31 ex parte at 2).б#XNє\  P}XP#бй d й)ж (3) 3,093 "local health departments or agencies" including 1,271 local health departmentsлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж ­џџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССTelephone contact by John Clark, FCC, with Carol Brown, National Association of County Health Officials, May 2, 1997.б#XNє\  P}XP#бй d й ж and 1,822 local boards of health;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж4Ўџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССLetter from Ned Baker, Nat'l Ass'n of Local Boards of Health, to John Clark, FCC, dated April 2, 1997 (Nat'l Ass'n of Local Boards of Health April 2 ex parte).б#XNє\  P}XP#бй d й4ж (4) 2,000 "community mental health centers";лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЏџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССTelephone contact by John Clark, FCC, with Mike Weakin, Center for Mental Health Services, HHS, on May 2, 1997.б#XNє\  P}XP#бй d йж (5) 2,049 "not-for-profit hospitals";лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжАџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССAmerican Hospital Association Center for Health Care Leadership, A Profile of Nonmetropolitan Hospitals 1991-95 at 5 (1997).б#XNє\  P}XP#бй d йж and (6) 3,329 "rural health clinics."лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжќБџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллССLetter from Patricia Taylor, ORHP/HHS, to John Clark, FCC, dated May 2, 1997 (ORHP/HHS May 2 ex parte).б#XNє\  P}XP#бй d йќж We do not have sufficient information to make an estimate of the number of consortia of health care providers at this time. The total of these categorical numbers is 12,296. Consequently, we estimate that there are fewer than 12,296 health care providers potentially affected by the actions proposed in this Further Notice. According to the SBA definition, hospitals must have annual gross receipts of $5 million or less to qualify as a small business concern.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЕВџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#бллСС13 C.F.R.РР 121.201, SIC 8060.б#XNє\  P}XP#бй d йЕж There are approximately 3,856 hospital firms, of which 294 have gross annual receipts of $5 million or less. Although some of these small hospital firms may not qualify as rural health care providers, we are unable at this time to estimate with greater precision the number of small hospital firms which might be affected by the proposals, if adopted. Consequently, we estimate that there are fewer than 294 hospital firms that might ultimately be affected by this Further NPRM.л Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССDescription of Projected Reporting, RecordЉkeeping, and Other Compliance Requirementsл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССThe measures under consideration in this Further Notice may, if adopted, result in additional reporting or other compliance requirements for telecommunications carriers, including small entities, as described below. л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#бл Para# лб#єAє\  P}єP#бллг d гб#XNє\  P}XP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССCertain measures under consideration in this Further Notice may, if adopted, result in increased federal universal service support obligations for telecommunications carriers required to contribute to federal universal service support mechanisms. Specifically, in this Further Notice, the Commission seeks comment on the possibility of allowing carriers to form separate tribal study areas;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЌГџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ paras. 63Љ65б#XNє\  P}XP#бй d йЌж lifting the cap on the highЉcost fund to allow for growth resulting from the use of tribal study areas;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж­Дџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ paras. 66Љ67.б#XNє\  P}XP#бй d й­ж amending the consumer qualification criteria for determining eligibility for Lifeline;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вж­Еџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ paras. 71Љ72.б#XNє\  P}XP#бй d й­ж expanding LinkUp to include facilities based lineЉextension charges or other construction costs;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЏЖџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ paras. 118Љ120.б#XNє\  P}XP#бй d йЏж providing support for intrastate tollЉcalling;лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЏЗџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee ФФparas. 121Љ122.б#XNє\  P}XP#бй d йЏж and providing support for the deployment of infrastructure necessary to provide rural health care providers with access to telehealth and telemedicine initiatives.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЏИџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ paras. 128Љ133.б#XNє\  P}XP#бй d йЏжл Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССCertain measures under consideration in this Further Notice may, if adopted, result in additional obligations for carriers filing petitions pursuant to section 214(e)(6) of the Act or subject to proceedings conducted pursuant to section 214(e)(6) of the Act. Section 214(e)(3) of the Act authorizes the Commission to designate carriers not subject to the jurisdiction of a state commission as an eligible telecommunications carriers. Specifically, carriers may be required to provide an analysis of the CommissionРРs jurisdiction in conjunction with filing petitions under this provision. Section 214(e)(3) of the Act authorizes the Commission to identify the carrier or carriers best able to provide the services supported by federal universal service support mechanisms in unserved areas, and to order that carrier or carriers to provide such service. One option under consideration is for the Commission to conduct a factЉbased inquiry of the common carriers serving areas near the unserved area to determine where existing facilities are deployed, to estimate the costs for each carrier to provide the supported services, and to consider other factors that may be relevant to the determination. This proposal could result in rules requiring carrier to submit information to the Commission that is needed in making this determination.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЉЙџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ para. 95.б#XNє\  P}XP#бй d йЉжл Para# лŒб#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССFinally, certain measures raised in this Further Notice could result in additional compliance requirements for carriers designated as eligible telecommunications carriers. Specifically, the Commission seeks comment on the possibility of expanding the provision of toll limitation offeringsлFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЊКџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee ФФpara. 123.б#XNє\  P}XP#бй d йЊж and on requiring additional publicity for the availability of lowЉincome support.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЏЛџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ paras. 124Љ127.б#XNє\  P}XP#бй d йЏжл Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССSignificant Alternatives To Proposed Rule Which Minimize Significant Economic Impact on Small Entities and Accomplish Stated Objectivesл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWith respect to the possibility of increased universal service contribution requirements, the primary alternative to the proposals contained in the Further Notice which would minimize the economic impact on small entities would be to determine not to provide an increased amount of support. In this proceeding, the Commission will consider whether the alternative Р!Р not to provide the additional support ЉЉ would nevertheless accomplish its stated objectives. We observe that section 254(d) of the Act requires that all telecommunications carriers contribute to the federal universal service support mechanisms on Р Рan equitable and nondiscriminatory basis.РР As a result, the Commission may not propose alternatives specifically designed to minimize the economic impact on small entities. We note, however, that the Commission has established a УУde minimisФФ exception from universal service contribution obligations for carriers whose interstate endЉuser telecommunications revenues in a given is less than $10,000.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЕМџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ 47 C.F.R. РР54.705.б#XNє\  P}XP#бй d йЕж This exception should lessen the burden on telecommunications carriers that meet the definition of small entities.л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССWith respect to the information that may need to be submitted in conjunction with petitions filed pursuant to section 214(e)(6) and proceedings conducted pursuant to section 214(e)(3), the primary alternative would be for the Commission to determine that the information is not required or to conclude that it could obtain the information from alternative sources. In seeking comment on this issue, the Commission intends to develop a record to determine whether the information is necessary and the appropriate source for obtaining it. In addition, with respect to proceedings conducted pursuant to section 214(e)(6), the Commission seeks comment on the possibility of providing an exception for carriers that meet the definition of small entities.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжЉНџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSeeФФ para. 95.б#XNє\  P}XP#бй d йЉж Moreover, the Commission seeks comment on the possibility of using a voluntary competitive bidding mechanism instead of the more cumbersome, factЉbased inquiry. If the competitive bidding proposal adopted, the compliance requirements for all carriers, including carriers that meet the definition of small entities, could be avoided. л Para# л б#XNє\  P}XP#бллл Para# лб#XNє\  P}XP#бллг d гааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССFinally, with respect to the additional compliance requirements for carriers designated eligible telecommunications carriers, the Commission does not seek comment on whether an exception for carriers meeting the definition of small entities is appropriate. In setting the standard for what services carriers designated as eligible telecommunications carriers must provide, the Commission has established a uniform, nationwide standard for the services to which all Americans should have access. Individual carriers, however, may obtain a waiver of the CommissionРРs rules if good cause is shown therefor.лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжБОџџааб#XNє\  P}XP#ба xАxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй V йлFootnote Refлб#єAє\  P}єP#бУУллй d йФФл#Footnote Ref#лб#єAє\  P}єP#блл ССУУSee ФФ47 C.F.R. РР1.3б#XNє\  P}XP#бй d йБжл Para# л б#XNє\  P}XP#бллл Heading 3 лб#XNє\  P}XP#бУ УУУззллг Ш гй 2 йвŒ I. A. 1.(a)(1)(a)(i)(a)џџџџџџџџџџџџџџџџŒва xА` А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА` ааи‚иССFederal Rules that May Duplicate, Overlap, or Conflict With the Noticeл! Heading 3 !лзз Ф ФФФб#XNє\  P}XP#бллй йл Para# лб#XNє\  P}XP#блла ` ААА аг d гвŒ 1. 1 1 1 1 1 1 1 џџџџџџџџџџџџџџџџŒвааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџА4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааг ‚X ги€иССNone.л Para# л б#XNє\  P}XP#бллб#єAє\  P}єP#б ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#б СССССССС ааУ УSEPARATE STATEMENT OF COMMISSIONER HAROLD FURCHTGOTT-ROTH DISSENTING IN PART аа а ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџАааг ‚Ј§ гФ ФУУ Re:ССFederalЉState Joint Board on Universal Service: Promoting Deployment and Subscribership in Unserved and Underserved Areas, Including Tribal and Insular AreasФФ, CC Docket 96Љ45. а ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААаа ССI support many of the worthwhile goals of today's Order. Although I write separately to express limited concerns about this item, I commend my colleagues and the members of the Commission staff who have worked so diligently on this important action. ССFirst, I object to the item's apparent invention of a new classification described as "underserved areas." This classification does not appear in the Communications Act. In fact, the Act specifically refers to a category of "unserved areas" for which Congress directed the Commission and the States to take specific action. УУSeeФФ Section 214(e)(3). Congress, however, did not create a category of "underserved areas," and the Commission has no authority to create one on its own motion. I believe the Commission can achieve the goals set forth in this item without inventing new terms and, as a result, placing at risk the goals we seek to serve in this item. ССSection 214(e)(6) directs the Commission to designate a common carrier as an eligible telecommunications carrier for purposes of receiving universal service support when, УУinter aliaФФ, the common carrier is not subject to the jurisdiction of a State commission. Although the goals of today's Order are worthwhile, meeting these goals should not result in overbroad results. I thus object to the tentative conclusion that this section should be interpreted such that the determination of whether a carrier is subject to the jurisdiction of a State commission depends on the geographic area in which the service is being provided (e.g. tribal lands) УУor ФФthe nature of the service provided (e.g. satellite or terrestrial wireless). УУSupra. ФФat par. 78. I am concerned that such a conclusion will ultimately lead to the federal government designating satellite and terrestrial wireless carriers as eligible telecommunications carriers outside of tribal areas. I dissent from this tentative conclusion, because I do not believe that this outcome is supported by section 214(e)(6). ССFinally, I question the decision to solicit comment regarding whether the Commission should establish national guidelines by which states must make the determination of which carriers are best able to provide services to unserved areas. УУSupra. ФФat par. 93. The Fifth Circuit only last month reversed a Commission order interpreting a very similar statutory provision in which the Commission attempted to prohibit States from developing their own requirements when designating carriers as eligible for federal universal service support pursuant to section 214(e)(2).лFootnote Refлб#єAє\  P}єP#бУУллл#Footnote Ref#лб#XNє\  P}XP#бФФллв X0УУФФX0УУФФ вжKПџџааб#XNє\  P}XP#ба ААxА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААаалFootnote Texлг ‚, гб#єAє\  P}єP#бллй Ќ йлFootnote Refлб#єAє\  P}єP#бУУллй Ш йФФл#Footnote Ref#лб#єAє\  P}єP#бллг bb г УУССTexas Office of Public Utility Counsel, et al., v. FCC, ФФUnited States Court of Appeals for the Fifth Circuit, No. 97Љ60421, rel. July 30, 1999.б#XNє\  P}XP#бй Ш йг dd гKж When the Commission solicits comment on a topic, it encourages members of the public to expend resources responding to that solicitation. I believe it is irresponsible to encourage such a use of resources when Commission action is unlikely because a federal appeals court has called into significant doubt the legality of the proposal at issue. ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААаа лBody Text л‹ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллаа л!Body Text !л ŠааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блллBody Text л‹ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллл!Body Text !л ŠааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блллBody Text л‹ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллааб#М[є\  P}МP#бУ УSeparate Statement ofл!Body Text !л ŠааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#М[є\  P}МP#блллBody Text л‹ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааб#М[є\  P}МP#бллCommissioner Gloria TristaniФ Фл!Body Text !л ŠааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#М[є\  P}МP#блллBody Text л‹ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааб#М[є\  P}МP#бллб#XNє\  P}XP#бл!Body Text !л ŠааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блллBody Text л‹ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блла xАА аааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАааг ‚Ј§ гУУRe:ССFederalЉState Joint Board on Universal Service: Promoting Deployment and Subscribership in Unserved and Underserved Areas, CC Docket No. 96Љ45; Extending Wireless Telecommunications Services, WT Docket No. 99Љ266.ФФл!Body Text !л ŠааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блллBody Text л‹ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блла ААА ааал!Body Text !л ŠааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блллBody Text л‹ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллССI write separately to underscore my support for these items. Both Notices of Proposed Rulemaking are intended to address and remedy the dearth of telecommunications in Indian country and other unserved and underserved areas. The facts are not in dispute. While Americans on average enjoy a telephone subscribership rate of 94%, many communities and areas throughout the land are not so fortunate. And Indians living on tribal lands are the least fortunate of all. Telephone subscribership rates on tribal lands fall under 50% in many instances and even under 30%, as in the case of the Navajo reservation.л!Body Text !л ŠааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААаа ССThese woeful statistics are not new, and this is not the first time that the federal government and others have taken notice. What is new, is that the Federal Communications Commission has not only taken notice, but is now embarked in taking concrete action to change these statistics. The items ask thoughtful, appropriate and insightful questions, including questions about the scope of the problem, the nature of the federal relationship with tribal sovereign governments, and the extent to which the FCC should act to remedy the problem. ССBut, more importantly, the items posit concrete suggestions Р!Р targeting universal service support, bolstering and/or tailoring the Lifeline and Linkup programs, using alternative technologies Р!РЉ on how to provide telecommunication services to Indian country and other unserved and underserved communities. These suggestions are good first steps but I hope commentors will not hesitate to suggest any other appropriate and innovative measures. лBody Text л‹ааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#бллССFinally, while I am proud to support these items, I believe it is our statutory and moral obligation to bring telecommunications to Indian country. Section 254 of the Telecommunications Act mandates that we assure that all Americans have access to telecommunications services. The federal trust relationship between tribal sovereign governments and the federal government suggests that we have an obligation to do even more. But history, notions of equality, and the principles on which this Nation was founded tell us that is unconscionable that Indians, the first Americans, remain the last Americans to enjoy the wonders and benefits of the Information Age. I trust that the small steps we take today will go a long way in changing this picture.л!Body Text !л ŠааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааб#XNє\  P}XP#блллTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Уллй d йлTitle л а И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААааФ Фб#XNє\  P}XP#блллTitle ла ААИ А аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџX„Ам4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџАИ ааг ‚јј гб#XNє\  P}XP#бУ Улла И ААА аааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџАм4` Œ И ф <h”РьDpœШє LxЄа ќ!(#џџџџџџџџџџџџџџџџџџџџџџџџџџААаа