[Federal Register: January 19, 1999 (Volume 64, Number 11)] [Notices] [Page 2901-2902] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr19ja99-68] ======================================================================= ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION [PR Docket Nos. 93-61 and GN 96-228; FCC 99-2] Small Business Size Standards AGENCY: Federal Communications Commission. ACTION: Notice; seeking comment. ----------------------------------------------------------------------- SUMMARY: In this Notice, the Commission is seeking further comment on the small business size standard definitions adopted for the auction of Location Monitoring Service and Wireless Communication Service spectrum. DATES: Comment deadline: January 20, 1999. ADDRESSES: To file formally, parties must submit an original and four copies to the Office of the Secretary, Federal Communications Commission, 445 Twelfth Street, SW., TW-A325, Washington, D.C. 20554. In addition, parties must submit one copy to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, Room 5202, 2025 M Street N.W., Washington, D.C. 20554. FOR FURTHER INFORMATION CONTACT: Ken Burnley or Arthur Lechtman, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, at (202) 418-0660. SUPPLEMENTARY INFORMATION: This Public Notice was released on January 13, 1999, and is available in its entirety, including all attachments, for inspection and copying during normal business hours in the Wireless Telecommunications Bureau's Public Reference Room, Room 5608, 2025 M Street, N.W., Washington, D.C., and also may be purchased from the Commission's copy contractor, International Transcription Services, (202) 857-3800, fax (202) 857-3805, 1231 20th Street, N.W., Washington, D.C. 20036. It is also available on the Commission's website at http:// www.fcc.gov. Synopsis of Public Notice In accordance with a recent ruling by the Small Business Administration (SBA), the Commission is seeking further comment on small business size standards adopted for the auction of Location and Monitoring Service (LMS) and Wireless Communications Service (WCS) spectrum. This ruling is detailed in the attached letter from the Administrator of the Small Business Administration. The Commission seeks comment on these issues for purposes of obtaining SBA approval of the LMS and WCS size standards. This action will not affect the outcome of the WCS auction or the payment obligations of WCS licensees. The LMS auction is scheduled to begin on February 23, 1999. In our rules for that auction, the Commission adopted small business size standards and associated bidding credits for LMS to remove entry barriers and ensure the participation of small businesses in the LMS auction and in the provision of service. The Commission sought comment, in general, on small business size standards for LMS, and one party commented on this issue. This commenter, Comtrak, recommended that the Commission adopt two small business categories in the LMS auction: (1) a ``small business'' category, for businesses with average gross revenues not to exceed $10 million; and (2) a ``very small business'' category, for businesses with average gross revenues not to exceed $3 million. Comtrak also recommended that the Commission rely solely on gross revenues, and not the number of employees, for the purpose of determining an entity's eligibility for small business incentives, as it has done in previous auctions. None of the commenters addressed capital requirements supporting the suggested small business thresholds. The rules the Commission adopted for LMS define a ``small business'' as an entity with average annual gross revenues for the preceding three years not to exceed $15 million. They define a ``very small business'' as an entity with average annual gross revenues for the preceding three years not to exceed $3 million. Thus, in accordance with the Part 1 rules concerning competitive bidding, small businesses will receive a 25 percent bidding credit and very small businesses will receive a 35 percent bidding credit. [[Page 2902]] The WCS auction closed on April 25, 1997. In the expedited rulemaking proceeding for this service, the Commission adopted tiered small business size standards and associated bidding credits. The Commission took this action to ensure that small businesses have the opportunity to participate in the provision of spectrum-based services, as required by Section 309(j) of the Communications Act. The record in the WCS proceeding supported the establishment of small business provisions. Several commenters urged the Commission to use tiered definitions, with levels similar to those employed for broadband PCS. As was the case with LMS, none of the commenters discussed capital requirements supporting the suggested small business thresholds. The Commission adopted the same small business definitions for WCS as it did for broadband PCS. Thus, it defined a ``small business'' as an entity with average annual gross revenues for the preceding three years not to exceed $40 million. The Commission defined a ``very small business'' as an entity with average annual gross revenues for the preceding three years not to exceed $15 million. The Commission established bidding credits of 25 percent for small businesses and 35 percent for very small businesses. The SBA recently informed the Commission that the SBA is unable to approve the LMS and WCS definitions because the Commission did not seek comment on specific small business proposals in the LMS Further Notice and the WCS Notice. Herein, the Commission takes this opportunity to solicit comments on the specific small business size standards that it adopted for LMS and WCS. Comments are due on or before January 13, 1999. To file formally, parties must submit an original and four copies to the Office of the Secretary, Federal Communications Commission, Federal Communications Commission, 445 Twelfth Street, SW., TW-A325, Washington, DC 20554. In addition, parties must submit one copy to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, Room 5202, 2025 M Street NW., Washington, DC 20554. Comments will be available for public inspection during regular business hours in the Wireless Telecommunications Bureau Public Reference Room, Room 5608, 2025 M Street NW., Washington, DC 20554. Federal Communications Commission. Shirley S. Suggs, Chief, Publications Branch. [FR Doc. 99-1141 Filed 1-13-99; 4:56 pm] BILLING CODE 6712-01-P