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50064 Federal Register / Vol. 72, No.

168 / Thursday, August 30, 2007 / Rules and Regulations

FEDERAL COMMUNICATIONS Synopsis network in order to communicate


COMMISSION 1. In this Report and Order, the messages of their own choosing, as
Commission finds that automatic previously determined in CC Docket No.
47 CFR Part 20 roaming is a common carrier obligation 94–54, published at 61 FR 44026,
pursuant to Sections 201 and 202 of the August 27, 1996.1 In finding that
[WT Docket No. 05–265; FCC No. 07–143] Communications Act, and discusses the roaming is a common carrier service, the
scope of the automatic roaming Commission noted the contrast between
Reexamination of Roaming Obligations obligation for commercial mobile radio roaming and services such as billing and
of Commercial Mobile Radio Service service (CMRS) carriers. The collection offered by local exchange
Providers Commission also declines to regulate carriers (LECs) and interexchange
the automatic roaming rates and carriers (IXCs), which are not common
AGENCY: Federal Communications carriage because they do ‘‘not allow
Commission. addresses other issues raised by
commenters in the record, including a customers of the service * * * to
ACTION: Final rule. communicate or transmit intelligence of
request for ‘‘most favored’’ roaming
partner rates for Tier IV CMRS carriers, their own design and choosing,’’ and
SUMMARY: In this document, the Federal because they can be offered by non-
Communications Commission (FCC) in-market or home roaming issues,
access to non-interconnected features communications entities such as credit
clarifies by final rule that automatic card companies. The Commission also
roaming is a common carrier obligation and enhanced digital networks, and
public filing of roaming rates. Finally, found that roaming satisfies all the
for commercial mobile radio service statutory elements of commercial
(CMRS) carriers, requiring them to the Commission codifies the automatic
roaming obligations into a rule, mobile radio service, and ‘‘is thus a
provide roaming services to other common carrier service, because it is (1)
carriers upon reasonable request and on imposing an affirmative obligation to
provide automatic roaming on CMRS an interconnected mobile service (2)
a just, reasonable, and non- offered for profit (3) in such a manner
discriminatory basis. carriers under certain conditions, denies
the petition for investigation pursuant to as to be available to a substantial
DATES: This rule is effective October 29, portion of the public.’’ There are two
Section 403 of the Act, and declines to
2007. sunset the existing manual roaming rule forms of roaming—manual and
FOR FURTHER INFORMATION CONTACT: at this time. automatic. The Commission finds that
Christina Clearwater at (202) 418–1893, 2. The Commission believes its both forms of roaming are common
Christina.Clearwater@fcc.gov, Spectrum findings and clarifications in this Report carrier services because both forms of
and Competition Policy Division, and Order with respect to CMRS roaming capability give end users access
Wireless Telecommunications Bureau; providers’ obligations regarding roaming to a foreign network in order to
Won Kim at (202) 418–1368, services serve the public interest and communicate messages of their own
Won.Kim@fcc.gov, Spectrum and safeguard wireless consumers’ choosing.
Competition Policy Division, Wireless reasonable expectations of receiving 5. Further, under Section 332 of the
Telecommunications Bureau. seamless nationwide commercial mobile Communications Act, CMRS providers
telephony services through roaming. are subject to common carrier
SUPPLEMENTARY INFORMATION: This is a regulations. Section 332(c)(1)(A)
summary of the Commission’s Report A. Automatic Roaming Obligations provides that a ‘‘person engaged in the
and Order, WT Docket No. 05–265, FCC provision of a service that is a
No. 07–143, adopted August 7, 2007 and 1. Automatic Roaming
commercial mobile service shall, insofar
released August 16, 2007. The full text 3. The Commission clarifies that as such person is engaged, be treated as
of the Report and Order is available for automatic roaming is a common carrier a common carrier,’’ and Subsection
public inspection on the Commission’s service, subject to the protections (c)(1)(B) states that, ‘‘[u]pon reasonable
Internet site at http://www.fcc.gov. It is outlined in Sections 201 and 202 of the request of any person providing
also available for inspection and Communications Act. If a CMRS carrier commercial mobile service, the
copying during regular business hours receives a reasonable request for Commission shall order a common
in the FCC Reference Center (CY–A257), automatic roaming, pursuant to Section carrier to establish physical connections
445 12th Street, SW., Washington, DC 332(c)(1)(B) and Section 201(a), it is with such service pursuant to the
20554. The full text of this document desirable and serves the public interest provisions of Section 201 of this Title.’’
also may be purchased from the for that CMRS carrier to provide Like any other common carrier service
Commission’s duplication contractor, automatic roaming service on offering, if a CMRS provider offers
Best Copy and Printing Inc., Portals II, reasonable and non-discriminatory automatic roaming, it triggers its
445 12th Street, SW., Room CY–B402, terms and conditions. Services that are common carrier obligations with respect
Washington, DC 20554; telephone (202) covered by the automatic roaming to the provisioning of that service under
488–5300; fax (202) 488–5563; e-mail obligation are limited to real-time, two- the Communications Act. The
FCC@BCPIWEB.COM. way switched voice or data services, Commission determines that, if a CMRS
provided by CMRS carriers, that are carrier receives a reasonable request for
Final Paperwork Reduction Act of 1995
interconnected with the public switched automatic roaming, pursuant to Section
Analysis
network and utilize an in-network 332(c)(1)(B) and Section 201(a), it is
The Report and Order does not switching facility that enables the desirable and necessary to serve the
contain an information collection provider to reuse frequencies and
subject to the Paperwork Reduction Act accomplish seamless hand-offs of 1 See Interconnection and Resale Obligations
of 1995, and therefore does not contain subscriber calls. These findings are Pertaining to Commercial Mobile Radio Services,
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any new or modified ‘‘information consistent with the Commission’s CC Docket No. 94–54, Second Report and Order and
collection burden for small business previous determinations. Third Notice of Proposed Rulemaking, 11 FCC Rcd
9462, 9468–69 Para. 10 (1996) (‘‘Interconnection
concerns with fewer than 25 4. Roaming is a common carrier and Resale Obligations Second Report and Order’’
employees,’’ pursuant to the Small service, because roaming capability and ‘‘Interconnection and Resale Obligations Third
Business Paperwork Relief Act of 2002. gives end users access to a foreign NPRM,’’ respectively).

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Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Rules and Regulations 50065

public interest for that CMRS carrier to including pre-complaint mediation, is 2. Determination Not to Impose Rate
provide automatic roaming service on available to roaming complaints. Several Regulation on Roaming Agreements
reasonable and non-discriminatory commenters—including parties both 11. The Commission declines to
terms and conditions. supporting and opposing adoption of an impose a price cap or any other form of
6. Additionally, the Commission automatic roaming rule—requested use rate regulation on the fees carriers pay
determines that a reasonable request for of the Commission’s Accelerated Docket each other when one carrier’s customer
automatic roaming will be limited to procedures to resolve roaming roams on another carrier’s network. In
real-time, two-way switched voice or complaints. Although all roaming particular, the Commission is not
data services, provided by CMRS complaints will not automatically be persuaded that consumers would be
carriers, that are interconnected with placed on the Accelerated Docket, an harmed in the absence of a price cap or
the public switched network and utilize affected carrier can seek consideration some other form of rate regulation. The
an in-network switching facility that of its complaint under the Commission’s Commission believes that the better
enables the provider to reuse Accelerated Docket rules and course, as established in this Report and
frequencies and accomplish seamless procedures where appropriate.
hand-offs of subscriber calls. This Order, is that the rates individual
9. Reasonableness of Automatic carriers pay for automatic roaming
ensures that all CMRS providers Roaming Requests. In order to provide
competing in the mass market for real- services be determined in the
some guidance as to the reasonableness marketplace through negotiations
time, two-way voice and data services of automatic roaming requests under
are similarly obligated to provide between the carriers, subject to the
Sections 201(b) and 202(a), the statutory requirement that any rates
automatic roaming services, thereby Commission also establishes several
equally benefiting all subscribers of charged be reasonable and non-
rebuttable presumptions with respect to discriminatory.
mobile telephony services who seek to requests for automatic roaming and the
roam seamlessly over CMRS networks. 12. The Commission finds that there
would-be host carriers’ response. The is insufficient evidence to justify
The Commission also concludes, as it Commission will presume a request for
has in prior proceedings, that an regulating the roaming rates of carriers,
automatic roaming to be reasonable, in and that any harm to consumers in the
important indicator of a provider’s the first instance, if the requesting
ability to compete with other CMRS absence of affirmative regulation in this
CMRS carriers’ network is regard is speculative. Moreover, with
providers is whether the provider’s technologically compatible and the
system has ‘‘in-network’’ switching the clarifications it makes herein with
roaming request is for areas outside of respect to automatic roaming, the
capability. In-network switching
the requesting carrier’s home market. As Commission finds that consumers are
facilities accommodate the reuse of
noted above, to be deemed reasonable, protected from being harmed by the
frequencies in different portions of the
a request for automatic roaming may level and structure of roaming rates
same service area, thus enabling any
involve only those real-time, two-way negotiated between carriers. Absent a
CMRS provider to offer interconnected
switched voice or data services that are finding that the existing level and
service to a larger group of customers
interconnected with the public switched structure of roaming rates harm
and compete directly with other CMRS
network and utilize an in-network consumers, regulation of rates for
providers in the mass consumer market.
7. Complaint Procedures. Based on its switching facility that enables the automatic roaming service is not
finding that automatic roaming is a provider to reuse frequencies and warranted.
common carrier service, the accomplish seamless hand-offs of 13. Because it is not persuaded that
Commission determines that the subscriber calls. When a presumptively the existing level and structure of
provisioning of automatic roaming reasonable automatic roaming request is roaming rates negotiated between
service is subject to Section 208 which made, a would-be host CMRS carrier has carriers harm consumers of mobile
provides that complaints may be filed a duty to respond to the request and telephony services, the Commission
with the Commission against common avoid actions that unduly delay or does not need to address the argument
carriers subject to the Communications stonewall the course of negotiations that the state of competition in the
Act. There has been some confusion regarding that request. For example, intermediate product market is such as
regarding whether the provisioning of following receipt of a reasonable to warrant rate regulation.
automatic roaming services is subject to automatic roaming request, evidence of 14. Based on the foregoing
the requirements of Section 208. Given a would-be host carrier’s refusal to considerations, the Commission
the fact-specific nature of the roaming respond at all or a persistent pattern of concludes that regulation of roaming
issues that have come to light during stonewalling behavior will likely rates is not warranted on economic
this proceeding and several merger support a finding of a breach of the grounds. In addition, however, the
proceedings, the Commission concludes would-be host carrier’s automatic Commission agrees with concerns raised
that many disputes involving automatic roaming obligations. in the record that rate regulation has the
roaming services would be best resolved 10. The presumptions and examples potential to distort carriers’ incentives
through an adjudicatory process. In of reasonableness cited above are not and behavior with regard to pricing and
deciding roaming complaints, the exhaustive, but rather are intended to investment in network buildout.
Commission will consider whether a provide some guidance to parties that Capping roaming rates by tying them to
request is reasonable or whether the may be participating in a Section 208 a benchmark based on larger carriers’
activity complained of is unjust and complaint proceeding involving retail rates may diminish larger carriers’
unreasonable based on the totality of the roaming services. CMRS carriers may incentives to lower retail prices paid by
circumstances of the case. When argue that the Commission should their customers, and perhaps even give
roaming-related complaints are filed, consider other relevant factors in them an incentive to raise retail rates. At
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the Commission intends to address determining whether there is a violation the same time, by requiring larger
them expeditiously on a case-by-case of the automatic roaming obligations, carriers to offer national roaming
basis. based on the totality of the coverage to their competitors’ customers
8. Further, the Commission notes that circumstances present in a particular at nearly the same rates offered to their
the Accelerated Docket procedure, case. own customers, this form of rate

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50066 Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Rules and Regulations

regulation may also give smaller competitive market conditions, resulting seeking to negotiate a roaming
regional carriers an incentive to reduce, in unjust and unreasonable practices agreement including such terms if
or even eliminate, the discounts they and discriminatory treatments. desired, or a host carrier from providing
offer on regional calling plans, thereby 18. Accordingly, the Commission a requesting CMRS carrier with in-
driving up the prices regional declines to mandate that a subcategory market or home roaming should it chose
subscribers pay for calls within their of CMRS carriers (i.e., Tier IV providers) to do so. The Commission continues to
plan’s calling area. be entitled to the same rates as ‘‘most encourage all CMRS carriers to negotiate
15. Similarly, regulation to reduce favored’’ roaming partners. The desired terms and conditions of
roaming rates has the potential to deter Commission similarly declines to automatic roaming agreements,
investment in network deployment by impose such an obligation on only including automatic roaming in
impairing buildout incentives facing certain larger CMRS carriers. Instead, overlapping geographic markets.
both small and large carriers. By the Commission believes that its finding 21. For purposes of this exclusion
enabling smaller regional carriers to that automatic roaming rule is a from automatic roaming obligations, in-
offer their customers national roaming common carrier service subject to market or home roaming is defined as
coverage at more favorable rates without provisions of Sections 201, 202 and 208 any geographic location where the
having to build a nationwide network, of the Communications Act and would-be host carrier and the requesting
rate regulation would tend to diminish guidance as to rebuttable presumptions CMRS carrier have wireless licenses or
smaller carriers’ incentives to expand establishing the reasonableness of an spectrum usage rights that could be
the geographic coverage of their automatic roaming request provide used to provide CMRS that cover or
networks. In addition, by reducing or small CMRS carriers with an effective overlap the same geographic location(s).
eliminating any competitive advantage mechanism for recourse against unjust Within these overlapping geographic
gained as a result of building out and unreasonable practices. areas, the would-be host carrier is not
nationwide or large regional networks, 2. In-Market or Home Roaming required to comply with an automatic
rate regulation would impair larger roaming request. This in-market or
carriers’ incentives to expand, maintain, 19. The Commission determines that home roaming exclusion does not
and upgrade their existing networks. the automatic roaming obligation does depend on the level of service the
not include an in-market or home
requesting CMRS carrier is providing in
B. Other Issues roaming requirement. The Commission
the overlapping geographic area. The
is not requiring a CMRS carrier to
1. ‘‘Most Favored’’ Roaming Partner exclusion applies regardless of whether
provide automatic roaming to a
Rates for Tier IV CMRS Providers the requesting CMRS carrier is
requesting CMRS carrier in a market
16. Since the Commission’s providing no service, limited service, or
where the CMRS carrier directly
determination that automatic roaming is state-of-the-art service.
competes with the requesting CMRS
common carrier service applies to all 22. Finally, the Commission also
carrier. Specifically, a CMRS carrier is
CMRS providers regardless of size, it determines that the automatic roaming
not required to provide automatic
declines to create a special Tier IV obligation under Sections 201 and 202
roaming to a requesting CMRS carrier
category for roaming services. The and the home roaming exclusion are not
where the requesting CMRS carrier
Commission also declines to adopt a intended to resurrect CMRS resale
holds a wireless license or spectrum
rule requiring that large nationwide obligations. CMRS resale entails a
usage rights (e.g., spectrum leases) in
carriers offer the same roaming the same geographic location as the reseller’s purchase of CMRS service
arrangements to Tier IV providers as would-be host CMRS carrier. In provided by a facilities-based CMRS
they offer to their ‘‘most favored’’ geographic areas outside of these carrier in order to provide resold service
roaming partners. overlapping areas or markets, however, within the same geographic market as
17. Because the need for automatic a host carrier must comply with the the facilities-based CMRS provider. The
roaming services may not always be the Commission’s automatic roaming Commission notes that its mandatory
same, and the value of roaming services requirement and provide this service in resale rule was sunset in 2002, and
may vary across different geographic a manner consistent with the common automatic roaming obligations can not
markets due to differences in population carrier obligations of Sections 201 and be used as a backdoor way to create de
and other factors affecting the supply 202 of the Communications Act. facto mandatory resale obligations or
and demand for roaming services, it is 20. The Commission finds that an virtual reseller networks.
likely that automatic roaming rates will automatic roaming request in the home 3. Access to Certain Data Features and
reasonably vary. Mobile services in the area of a requesting CMRS carrier, the Enhanced Digital Networks
United States are differentiated based on area where the requesting CMRS carrier
price, as well as non-price attributes, has the spectrum to compete directly (a) Access to Push-to-Talk, Text
including geographic coverage. with the would-be host carrier, does not Messaging (SMS) and Non-
Competition between mobile telephone serve the Commission’s public interest Interconnected Data Features
pricing plans that are differentiated in goals of encouraging facilities-based 23. As discussed above, the scope of
these ways benefits consumers by service and supporting consumer automatic roaming services includes
allowing them to choose pricing plans expectations of seamless coverage when only services offered by CMRS carriers
that offer the best deal on the types of traveling outside the home area. The that are real-time, two-way switched
services they use most frequently. Commission finds that if a carrier is voice or data services that are
Mandating that a subcategory of CMRS allowed to ‘‘piggy-back’’ on the network interconnected with the public switched
carriers (i.e., Tier IV providers) are coverage of a competing carrier in the network and utilize an in-network
entitled to the same rates as ‘‘most same market, then both carriers lose the switching facility that enables providers
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favored’’ roaming partners and imposing incentive to build out into high cost to reuse frequencies and accomplish
this obligation on certain large CMRS areas in order to achieve superior seamless hand-offs of subscriber calls.
carriers, without a clear demonstration network coverage. This conclusion, The Commission finds that it would
of why such a requirement would serve however, should not be construed as serve the public interest to extend
the public interest, would distort prohibiting a requesting carrier from automatic roaming obligations to push-

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Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Rules and Regulations 50067

to-talk and SMS. The Commission means such as initial spectrum licensing way switched voice or data service over
declines at this time, however, to adopt or secondary markets. In light of these digital network that is interconnected
a rule extending the automatic roaming diverse views, the Commission believes with the public switched network and
obligation beyond that to offerings that it is in the public interest, however, to utilize an in-network switching facility
do not fall within the scope of the examine the issue of automatic roaming that enables the provider to reuse
automatic roaming services’ definition, for non-interconnected features or frequencies and accomplish seamless
such as non-interconnected services or services through a Further Notice of hand-offs of subscriber calls. The
features. Proposed Rulemaking (FNPRM). Commission also notes that codification
24. With respect to push-to-talk and of an automatic roaming obligation gives
SMS, the Commission notes that such (b) Access to Enhanced Digital Networks
CMRS carriers another avenue to redress
offerings are typically bundled as a 26. As previously explained, the roaming disputes, benefiting mobile
feature on the handset with other CMRS automatic roaming obligation applies to telephony subscribers.
services, such as real-time, two-way real-time, two-way switched voice or 30. Finally, the Commission clarifies
switched mobile voice or data, that are data services that are interconnected that automatic roaming, pursuant to
interconnected with the public switched with the public switched network and Sections 201 and 202, as a common
network. Provision of these features utilize an in-network switching facility carrier obligation applies to CMRS
differs from one carrier to another, i.e., that enables providers to reuse carriers’ analog networks. The
push-to-talk and SMS are frequencies and accomplish seamless Commission does not find, however,
interconnected features or services in hand-offs of subscriber calls. As that it is necessary to codify this
some instances, but non-interconnected discussed above with respect to non- obligation into a specific rule. With the
in others, depending on the technology interconnected services, the sunset of the analog service requirement
and network configuration chosen by Commission similarly declines at this on February 18, 2008, there would be
the carriers. The Commission is also time to extend the scope of the little benefit to a codified automatic
aware that consumers consider push-to- automatic roaming services definition to roaming rule for analog networks that
talk and SMS as features that are include non-interconnected services might potentially apply between now
typically offered as adjuncts to basic provided over enhanced digital and that date. Individual carriers may,
voice services, and expect the same networks, such as wireless broadband of course, enter into automatic roaming
seamless connectivity with respect to Internet access. The Commission finds agreements for their analog networks,
these features and capabilities as they that automatic roaming, as a common and any allegations that particular
travel outside their home network carrier obligation, does not extend to practices on analog networks are unjust,
service areas. For these reasons, the services that are classified as unreasonable or otherwise in violation
Commission finds that it is in the public information services or to other wireless of Sections 201 and 202 of the
interest to impose an automatic roaming services that are not CMRS. Communications Act would be subject
obligation on push-to-talk and SMS 27. While the Commission finds that, to the complaint process of Section 208
offerings, subject to several provisos. based on the current record, it is of the Communications Act.
Namely, the requesting carrier must premature to impose any roaming
D. Petition for Investigation Pursuant to
offer push-to-talk and SMS to its obligation regarding enhanced data
Section 403 of the Act
subscribers on its own home network; services that are not CMRS and not
push-to-talk and SMS roaming must be interconnected to the public switched 31. Because the Commission finds
technically feasible; and any changes to network, the Commission will examine that the record is sufficient to codify
the would-be host carrier’s network that this matter further in the FNPRM. automatic roaming obligations of CMRS
are necessary to accommodate push-to- carriers, the Commission denies the
talk and SMS roaming requests must be 4. Public Filing of Roaming Rates Joint Petition for Investigation Pursuant
economically reasonable. 28. The Commission declines to to Section 403, which petitioners
25. With respect to non- impose an affirmative obligation on contend will assist the Commission in
interconnected features or services, the CMRS carriers to post their roaming gathering necessary information to
Commission finds that the record in this rates. As is generally the case with support the adoption of an automatic
proceeding lacks a clear showing that it commercial agreements, roaming roaming rule.
is in the public interest at this time to agreements are confidential and filing
E. Manual Roaming
impose an automatic roaming them would impose administrative costs
obligation. While proponents of on the carriers. In light of its adoption 32. The Commission declines to
unrestricted data roaming have argued of an automatic roaming rule as sunset its existing manual roaming rule
that requiring roaming access to the discussed below, the Commission finds and, instead, retains it as a safety net for
non-interconnected features of a that the available remedies for redress consumers. The Commission is aware
competitor’s network would benefit are sufficient to address disputes that that as automatic roaming becomes
consumers by providing greater may arise. increasingly ubiquitous, it will render
availability for data features that are the need for manual roaming obsolete.
increasingly used by consumers, C. Codification of Automatic Roaming The Commission notes, however, that
opponents are concerned that that it Obligations the record demonstrates that automatic
might undercut incentives to 29. The Commission codifies the roaming is not available in certain
differentiate products and could chill automatic roaming obligations of CMRS instances today and, therefore, the
innovation. These opponents claim that carriers into a rule requiring that they continuing utility of the manual
extending roaming to non- provide automatic roaming to any roaming rule in the immediate future is
interconnected features of a requesting technologically compatible not completely obviated. For this
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competitors’ network may also CMRS carrier outside of the requesting reason, the Commission retains the
adversely affect business decisions to CMRS carrier’s home market on manual roaming rule as a safety net to
build out facilities for facilities-based reasonable and nondiscriminatory terms ensure that subscribers can initiate a
competition and reduce the incentives and conditions. This rule applies to wireless call when they are outside of
to access the spectrum through other CMRS carriers that offer real-time, two- their service area through manual

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50068 Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Rules and Regulations

roaming if there is no automatic 35. The Commission also finds that ‘‘small business concern’’ is one which:
roaming agreement in place. the common carrier obligation to (1) Is independently owned and
provide roaming extends to services that operated; (2) is not dominant in its field
Final Regulatory Flexibility Analysis
are real-time, two-way switched voice or of operation; and (3) satisfies any
33. As required by the Regulatory data service that are interconnected additional criteria established by the
Flexibility Act of 1980, as amended with the public switched network and Small Business Administration (SBA).10
(RFA),2 an Initial Regulatory Flexibility utilize an in-network switching facility 39. In the following paragraphs, the
Analysis (IRFA) was incorporated in the that enables the provider to reuse Commission further describes and
NPRM in WT Docket No. 05–265, frequencies and accomplish seamless estimates the number of small entity
published at 70 FR 56612, September hand-offs of subscriber calls. The licensees that may be affected by the
28, 2005.3 The Commission sought Commission notes that roaming, as a rules the Commission adopts in this
written public comment on the common carrier obligation, does not Report and Order. The Commission’s
proposals in the NPRM, including extend to services that are classified as finding that automatic roaming is a
comment on the IRFA. This present information services or to services that common carrier service subject to
Final Regulatory Flexibility Analysis are not CMRS.6 protections outlined in Sections 201,
(FRFA) conforms to the RFA.4 36. The Commission recognizes that 202 and 208 of the Act affects all CMRS
A. Need for, and Objectives of, the today CMRS consumers increasingly carriers that provide real-time, two-way
Report and Order rely on mobile telephony services and switched voice or data service that are
they reasonably expect to continue their interconnected with the public switched
34. In the Report and Order, with wireless communications even when network and utilize an in-network
regard to commercial services, the they are out of their home network area. switching facility that enables the
Commission takes an affirmative step to Thus, the findings in this Report and provider to reuse frequencies and
facilitate the provision of wireless Order with respect to CMRS providers’ accomplish seamless hand-offs of
services to consumers, especially those obligations regarding roaming services subscriber calls. Such carriers are
in rural areas, and to clarify its rules serve the public interest and safeguard obligated to provide automatic roaming.
related to roaming. The Commission wireless consumers’ reasonable As a common carrier obligation, the
clarifies that automatic roaming is a expectations of seamless continuous automatic roaming rule does not extend
common carrier obligation for CMRS nationwide commercial mobile to non-interconnected services/features
carriers, requiring them to provide telephony services through roaming. or services that are classified as
roaming services to other carriers upon The Commission also declines to sunset information services or to services that
reasonable request and on a just, the existing manual roaming are not CMRS.
reasonable, and non-discriminatory requirement at this time to provide 40. Since this Report and Order
basis pursuant to Sections 201 and 202 additional flexibility for consumers. applies to multiple services, this FRFA
of the Communications Act. The analyzes the number of small entities
Commission reiterates its earlier B. Summary of Significant Issues Raised
by Public Comments in Response to the affected on a service-by-service basis.
determination that roaming is a When identifying small entities that
common carrier service because IRFA
could be affected by the Commission’s
roaming capability gives end users 37. There were no comments filed new rules, this FRFA provides
access to a foreign network in order to specifically in response to the IRFA. information that describes auctions
communicate messages of their own results, including the number of small
choosing. Thus, the provision of C. Description and Estimate of the
Number of Small Entities to Which entities that were winning bidders.
roaming is subject to the requirements However, the number of winning
of Section 201, 202, and 208 of the Rules Will Apply
bidders that qualify as small businesses
Communications Act.5 38. The RFA directs agencies to
at the close of an auction does not
provide a description of, and, where
necessarily reflect the total number of
2 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601– feasible, an estimate of, the number of
612, has been amended by the Small Business small entities currently in a particular
small entities that may be affected by
Regulatory Enforcement Fairness Act of 1996 service. The Commission does not
the proposed rules, if adopted.7 The
(SBREFA), Pub. L. 104–121, Title II, 110 Stat. 857 generally require that licensees later
(1996). RFA generally defines the term ‘‘small
provide business size information,
3 See In the Matter of Reexamination of Roaming entity’’ as having the same meaning as
except in the context of an assignment
Obligations of Commercial Mobile Radio Service the terms ‘‘small business,’’ ‘‘small
Providers, Automatic and Manual Roaming or a transfer of control application that
organization,’’ and ‘‘small governmental
Obligations Pertaining to Commercial Mobile Radio involves unjust enrichment issues.
Services, Memorandum Opinion & Order and jurisdiction.’’ 8 In addition, the term
41. Wireless Service Providers. The
Notice of Proposed Rulemaking, WT Docket No. 05– ‘‘small business’’ has the same meaning
SBA has developed a small business
265, 20 FCC Rcd 15047, 15068 App. (2005) as the term ‘‘small business concern’’
(‘‘MO&O’’ and ‘‘NPRM,’’ respectively). size standard for wireless firms within
under the Small Business Act.9 A
4 See 5 U.S.C. 604. the two broad economic census
5 See Reexamination of Roaming Obligations of
Section 332(c)(1) of the Act provides that a person
categories of ‘‘Paging’’11 and ‘‘Cellular
Commercial Mobile Radio Service Providers, and Other Wireless
engaged in the provision of a service that is a
Automatic and Manual Roaming Obligations
commercial mobile service shall be treated as a
Pertaining to Commercial Mobile Radio Services,
common carrier for purposes of the Act. See 47 Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C.
WT Docket No. 05–265, Memorandum Opinion &
U.S.C. 332(c)(1). 601(3), the statutory definition of a small business
Order and Notice of Proposed Rulemaking, 20 FCC 6 Appropriate Regulatory Treatment for
Rcd 15047, 15048 para. 2 (2005) (‘‘Reexamination applies ‘‘unless an agency, after consultation with
NPRM’’); Interconnection and Resale Obligations Broadband Access to the Internet Over Wireless the Office of Advocacy of the Small Business
Pertaining to Commercial Mobile Radio Services, Networks, Declaratory Ruling, FCC No. 07–30, Administration and after opportunity for public
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CC Docket No. 94–54, Second Report and Order and paras. 11–12 (rel. Mar. 23, 2007) (‘‘Wireless comment, establishes one or more definitions of
Third Notice of Proposed Rulemaking, 11 FCC Rcd Broadband Internet Access Declaratory Ruling’’). such term which are appropriate to the activities of
7 5 U.S.C. 604(a)(3). the agency and publishes such definition(s) in the
9462, 9463–71 paras. 1–14 (1996) (‘‘Interconnection
and Resale Obligations Second Report and Order’’ 8 5 U.S.C. 601(6). Federal Register.’’
10 15 U.S.C. 632.
and ‘‘Interconnection and Resale Obligations Third 9 5 U.S.C. 601(3) (incorporating by reference the

NPRM,’’ respectively). See also 47 CFR 20.15. definition of ‘‘small-business concern’’ in the Small 11 13 CFR 121.201, NAICS code 517211.

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Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Rules and Regulations 50069

Telecommunications.’’ 12 Under both size standard, the majority of firms can 44. Narrowband Personal
categories, the SBA deems a wireless be considered small. Communications Service. The
business to be small if it has 1,500 or 43. Broadband Personal Commission held an auction for
fewer employees. For the census Communications Service. The Narrowband Personal Communications
category of Paging, Census Bureau data broadband Personal Communications Service (PCS) licenses that commenced
for 2002 show that there were 807 firms Service (PCS) spectrum is divided into on July 25, 1994, and closed on July 29,
in this category that operated for the six frequency blocks designated A 1994. A second commenced on October
entire year.13 Of this total, 804 firms had through F, and the Commission has held 26, 1994 and closed on November 8,
employment of 999 or fewer employees, 1994. For purposes of the first two
auctions for each block. The
and three firms had employment of Narrowband PCS auctions, ‘‘small
Commission has created a small
1,000 employees or more.14 Thus, under businesses’’ were entities with average
business size standard for Blocks C and
this category and associated small gross revenues for the prior three
F as an entity that has average gross
business size standard, the majority of calendar years of $40 million or less.27
revenues of less than $40 million in the
firms can be considered small. For the Through these auctions, the
three previous calendar years.21 For
census category of Cellular and Other Commission awarded a total of forty-one
Block F, an additional small business
Wireless Telecommunications, Census licenses, 11 of which were obtained by
size standard for ‘‘very small business’’ four small businesses.28 To ensure
Bureau data for 2002 show that there was added and is defined as an entity
were 1,397 firms in this category that meaningful participation by small
that, together with its affiliates, has business entities in future auctions, the
operated for the entire year.15 Of this average gross revenues of not more than
total, 1,378 firms had employment of Commission adopted a two-tiered small
$15 million for the preceding three business size standard in the
999 or fewer employees, and 19 firms calendar years.22 These small business
had employment of 1,000 employees or Narrowband PCS Second Report and
size standards, in the context of Order.29 A ‘‘small business’’ is an entity
more.16 Thus, under this second broadband PCS auctions, have been
category and size standard, the majority that, together with affiliates and
approved by the SBA.23 No small controlling interests, has average gross
of firms can, again, be considered small. businesses within the SBA-approved revenues for the three preceding years of
42. Cellular Licensees. The SBA has small business size standards bid not more than $40 million.30 A ‘‘very
developed a small business size successfully for licenses in Blocks A small business’’ is an entity that,
standard for small businesses in the and B. There were 90 winning bidders together with affiliates and controlling
category ‘‘Cellular and Other Wireless that qualified as small entities in the C interests, has average gross revenues for
Telecommunications.’’ 17 Under that Block auctions. A total of 93 ‘‘small’’ the three preceding years of not more
SBA category, a business is small if it and ‘‘very small’’ business bidders won than $15 million.31 The SBA has
has 1,500 or fewer employees.18 For the approximately 40 percent of the 1,479 approved these small business size
census category of ‘‘Cellular and Other licenses for Blocks D, E, and F.24 On standards.32 A third auction
Wireless Telecommunications,’’ Census March 23, 1999, the Commission commenced on October 3, 2001 and
Bureau data for 2002 show that there reauctioned 155 C, D, E, and F Block closed on October 16, 2001. Here, five
were 1,397 firms in this category that licenses; there were 113 small business bidders won 317 (MTA and nationwide)
operated for the entire year.19 Of this winning bidders.25 On January 26, 2001, licenses.33 Three of these claimed status
total, 1,378 firms had employment of the Commission completed the auction as a small or very small entity and won
999 or fewer employees, and 19 firms of 422 C and F PCS licenses in Auction 311 licenses.
had employment of 1,000 employees or 35.26 Of the 35 winning bidders in this 45. Specialized Mobile Radio. The
more.20 Thus, under this category and auction, 29 qualified as ‘‘small’’ or ‘‘very Commission awards ‘‘small entity’’
small’’ businesses. Subsequent events bidding credits in auctions for
12 13 CFR 121.201, NAICS code 517212. concerning Auction 35, including Specialized Mobile Radio (SMR)
13 U.S. Census Bureau, 2002 Economic Census, judicial and agency determinations, geographic area licenses in the 800 MHz
Subject Series: Information, ‘‘Establishment and resulted in a total of 163 C and F Block
Firm Size (Including Legal Form of Organization,’’
Table 5, NAICS code 517211 (issued Nov. 2005). licenses being available for grant. 27 Implementation of Section 309(j) of the

14 Id. The census data do not provide a more Communications Act—Competitive Bidding
Narrowband PCS, Third Memorandum Opinion and
precise estimate of the number of firms that have 21 See Amendment of Parts 20 and 24 of the
Order and Further Notice of Proposed Rulemaking,
employment of 1,500 or fewer employees; the Commission’s Rules—Broadband PCS Competitive 10 FCC Rcd 175, 196 para. 46 (1994).
largest category provided is for firms with ‘‘1000 Bidding and the Commercial Mobile Radio Service 28 See ‘‘Announcing the High Bidders in the
employees or more.’’ Spectrum Cap, Report and Order, 11 FCC Rcd 7824,
15 U.S. Census Bureau, 2002 Economic Census,
Auction of ten Nationwide Narrowband PCS
7850–7852 paras. 57–60 (1996); see also 47 CFR Licenses, Winning Bids Total $617,006,674,’’ public
Subject Series: Information, ‘‘Establishment and 24.720(b). notice, PNWL 94–004 (rel. Aug. 2, 1994);
Firm Size (Including Legal Form of Organization,’’ 22 See Amendment of Parts 20 and 24 of the
‘‘Announcing the High Bidders in the Auction of 30
Table 5, NAICS code 517212 (issued Nov. 2005). Commission’s Rules—Broadband PCS Competitive Regional Narrowband PCS Licenses; Winning Bids
16 Id. The census data do not provide a more Bidding and the Commercial Mobile Radio Service Total $490,901,787,’’ public notice, PNWL 94–27
precise estimate of the number of firms that have Spectrum Cap, Report and Order, 11 FCC Rcd 7824, (rel. Nov. 9, 1994).
employment of 1,500 or fewer employees; the 7852 para. 60. 29 Amendment of the Commission’s Rules to
largest category provided is for firms with ‘‘1000 23 See Letter to Amy Zoslov, Chief, Auctions and
Establish New Personal Communications Services,
employees or more.’’ Industry Analysis Division, Wireless Narrowband PCS, Second Report and Order and
17 13 CFR 121.201, North American Industry Telecommunications Bureau, Federal Second Further Notice of Proposed Rule Making, 15
Classification System (NAICS) code 517212. Communications Commission, from Aida Alvarez, FCC Rcd 10456, 10476 para. 40 (2000).
18 Id. Administrator, Small Business Administration, 30 Id.
19 U.S. Census Bureau, 2002 Economic Census, dated December 2, 1998. 31 Id.
24 FCC News, ‘‘Broadband PCS, D, E and F Block
Subject Series: Information, ‘‘Establishment and 32 See Letter to Amy Zoslov, Chief, Auctions and

Firm Size (Including Legal Form of Organization,’’ Auction Closes,’’ No. 71744 (rel. January 14, 1997). Industry Analysis Division, Wireless
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Table 5, NAICS code 517212 (issued Nov. 2005). 25 See ‘‘C, D, E, and F Block Broadband PCS
Telecommunications Bureau, Federal
20 Id. The census data do not provide a more Auction Closes,’’ public notice, 14 FCC Rcd 6688 Communications Commission, from Aida Alvarez,
precise estimate of the number of firms that have (WTB 1999). Administrator, Small Business Administration,
employment of 1,500 or fewer employees; the 26 See ‘‘C and F Block Broadband PCS Auction dated December 2, 1998.
largest category provided is for firms with ‘‘1000 Closes; Winning Bidders Announced,’’ public 33 See ‘‘Narrowband PCS Auction Closes,’’ public

employees or more.’’ notice, 16 FCC Rcd 2339 (2001). notice, 16 FCC Rcd 18663 (WTB 2001).

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50070 Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Rules and Regulations

and 900 MHz bands to firms that had implementation authorizations in the gross revenues of $15 million for each
revenues of no more than $15 million in 800 and 900 MHz bands. The of the three preceding years.41 The SBA
each of the three previous calendar Commission does not know how many has approved these definitions.42 The
years.34 The Commission awards ‘‘very firms provide 800 MHz or 900 MHz Commission auctioned geographic area
small entity’’ bidding credits to firms geographic area SMR pursuant to licenses in the WCS service. In the
that had revenues of no more than $3 extended implementation auction, which commenced on April 15,
million in each of the three previous authorizations, nor how many of these 1997 and closed on April 25, 1997, there
calendar years.35 The SBA has approved providers have annual revenues of no were seven bidders that won 31 licenses
these small business size standards for more than $3 million or $15 million (the that qualified as very small business
the 900 MHz Service.36 The special small business size standards), entities, and one bidder that won one
Commission has held auctions for or have no more than 1,500 employees license that qualified as a small business
geographic area licenses in the 800 MHz (the generic SBA standard for wireless entity.
and 900 MHz bands. The 900 MHz SMR entities, discussed, supra). One firm has 51. 220 MHz Radio Service—Phase I
auction began on December 5, 1995, and over $15 million in revenues. The Licensees. The 220 MHz service has
closed on April 15, 1996. Sixty bidders Commission assumes, for purposes of both Phase I and Phase II licenses. Phase
claiming that they qualified as small this analysis, that all of the remaining I licensing was conducted by lotteries in
businesses under the $15 million size existing extended implementation 1992 and 1993. There are approximately
standard won 263 geographic area authorizations are held by small 1,515 such non-nationwide licensees
licenses in the 900 MHz SMR band. The entities. and four nationwide licensees currently
800 MHz SMR auction for the upper 200 48. Advanced Wireless Services. In authorized to operate in the 220 MHz
channels began on October 28, 1997, the AWS–1 Report and Order, the Band. The Commission has not
and was completed on December 8, Commission adopted rules that affect developed a definition of small entities
1997. Ten bidders claiming that they applicants who wish to provide service specifically applicable to such
qualified as small businesses under the in the 1710–1755 MHz and 2110–2155 incumbent 220 MHz Phase I licensees.
$15 million size standard won 38 MHz bands.39 The AWS–1 Report and To estimate the number of such
geographic area licenses for the upper Order defines a ‘‘small business’’ as an licensees that are small businesses, the
200 channels in the 800 MHz SMR entity with average annual gross Commission applies the small business
band.37 A second auction for the 800 revenues for the preceding three years size standard under the SBA rules
MHz band was held on January 10, 2002 not exceeding $40 million, and a ‘‘very applicable to ‘‘Cellular and Other
and closed on January 17, 2002 and small business’’ as an entity with Wireless Telecommunications’’
included 23 BEA licenses. One bidder average annual gross revenues for the companies. This category provides that
claiming small business status won five preceding three years not exceeding $15 a small business is a wireless company
licenses.38 million. The AWS–1 Report and Order employing no more than 1,500
46. The auction of the 1,050 800 MHz also provides small businesses with a persons.43 For the census category of
SMR geographic area licenses for the bidding credit of 15 percent and very ‘‘Cellular and Other Wireless
General Category channels began on small businesses with a bidding credit Telecommunications,’’ Census Bureau
August 16, 2000, and was completed on of 25 percent. data for 2002 show that there were 1,397
September 1, 2000. Eleven bidders won 49. Rural Radiotelephone Service. The firms in this category that operated for
108 geographic area licenses for the Commission uses the SBA small the entire year.44 Of this total, 1,378
General Category channels in the 800 firms had employment of 999 or fewer
business size standard applicable to
MHz SMR band qualified as small employees, and 19 firms had
cellular and other wireless
businesses under the $15 million size employment of 1,000 employees or
telecommunication companies, i.e., an
standard. In an auction completed on more.45 Thus, under this category and
entity employing no more than 1,500
December 5, 2000, a total of 2,800 size standard, the majority of firms can
persons.40 There are approximately
Economic Area licenses in the lower 80 be considered small.
1,000 licensees in the Rural
channels of the 800 MHz SMR service 52. 220 MHz Radio Service—Phase II
Radiotelephone Service, and the
were sold. Of the 22 winning bidders, Licensees. The 220 MHz service has
Commission estimates that there are
19 claimed ‘‘small business’’ status and both Phase I and Phase II licenses. The
1,000 or fewer small entity licensees in
won 129 licenses. Thus, combining all Phase II 220 MHz service is subject to
the Rural Radiotelephone Service that
three auctions, 40 winning bidders for spectrum auctions. In the 220 MHz
may be affected by the rules and
geographic licenses in the 800 MHz Third Report and Order, the
policies adopted herein.
SMR band claimed status as small
50. Wireless Communications
business. 41 Amendment of the Commission’s Rules to

47. In addition, there are numerous Services. This service can be used for Establish Part 27, the Wireless Communications
incumbent site-by-site SMR licensees fixed, mobile, radiolocation, and digital Service (WCS), Report and Order, 12 FCC Rcd
and licensees with extended audio broadcasting satellite uses in the 10785, 10879 para. 194 (1997).
2305–2320 MHz and 2345–2360 MHz 42 See Letter to Amy Zoslov, Chief, Auctions and

bands. The Commission defined ‘‘small Industry Analysis Division, Wireless


34 47 CFR 90.814(b)(1). Telecommunications Bureau, Federal
35 Id. business’’ for the wireless Communications Commission, from Aida Alvarez,
36 See Letter to Thomas Sugrue, Chief, Wireless communications services (WCS) auction Administrator, Small Business Administration,
Telecommunications Bureau, Federal as an entity with average gross revenues dated December 2, 1998.
Communications Commission, from Aida Alvarez, of $40 million for each of the three 43 13 CFR 121.201, NAICS code 517212.

Administrator, Small Business Administration, 44 U.S. Census Bureau, 2002 Economic Census,
dated August 10, 1999.
preceding years, and a ‘‘very small
Subject Series: Information, ‘‘Establishment and
37 See ‘‘Correction to Public Notice DA 96–586 business’’ as an entity with average Firm Size (Including Legal Form of Organization,’’
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‘FCC Announces Winning Bidders in the Auction Table 5, NAICS code 517212 (issued Nov. 2005).
of 1020 Licenses to Provide 900 MHz SMR in Major 39 Service Rules for Advanced Wireless Services 45 Id. The census data do not provide a more
Trading Areas,’’’ public notice, 18 FCC Rcd 18367 in the 1.7 GHz and 2.1 GHz Bands, WT Docket No. precise estimate of the number of firms that have
(WTB 1996). 02–353, Report and Order, 18 FCC Rcd 25162 employment of 1,500 or fewer employees; the
38 See ‘‘Multi-Radio Service Auction Closes,’’ (2003) (AWS–1 Report and Order). largest category provided is for firms with ‘‘1000
public notice, 17 FCC Rcd 1446 (WTB 2002). 40 13 CFR 121.201, NAICS code 517212. employees or more.’’

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Commission adopted a small business payments.54 A small business in this licenses, previously scheduled for
size standard for defining ‘‘small’’ and service is an entity that, together with January 13, 2003, was postponed.61
‘‘very small’’ businesses for purposes of its affiliates and controlling principals, 55. Lower 700 MHz Band Licenses.
determining their eligibility for special has average gross revenues not The Commission adopted criteria for
provisions such as bidding credits and exceeding $40 million for the preceding defining three groups of small
installment payments.46 This small three years.55 Additionally, a ‘‘very businesses for purposes of determining
business standard indicates that a small business’’ is an entity that, their eligibility for special provisions
‘‘small business’’ is an entity that, together with its affiliates and such as bidding credits.62 The
together with its affiliates and controlling principals, has average gross Commission has defined a small
controlling principals, has average gross revenues that are not more than $15 business as an entity that, together with
revenues not exceeding $15 million for million for the preceding three years.56 its affiliates and controlling principals,
the preceding three years.47 A ‘‘very SBA approval of these definitions is not has average gross revenues not
small business’’ is defined as an entity required.57 An auction of 52 Major exceeding $40 million for the preceding
Economic Area (MEA) licenses three years.63 A very small business is
that, together with its affiliates and
commenced on September 6, 2000, and defined as an entity that, together with
controlling principals, has average gross
closed on September 21, 2000.58 Of the its affiliates and controlling principals,
revenues that do not exceed $3 million
104 licenses auctioned, 96 licenses were has average gross revenues that are not
for the preceding three years.48 The SBA more than $15 million for the preceding
sold to nine bidders. Five of these
has approved these small size three years.64 Additionally, the Lower
bidders were small businesses that won
standards.49 Auctions of Phase II 700 MHz Band has a third category of
a total of 26 licenses. A second auction
licenses commenced on September 15, of 700 MHz Guard Band licenses small business status that may be
1998, and closed on October 22, 1998.50 commenced on February 13, 2001, and claimed for Metropolitan/Rural Service
In the first auction, 908 licenses were closed on February 21, 2001. All eight Area (MSA/RSA) licenses. The third
auctioned in three different-sized of the licenses auctioned were sold to category is entrepreneur, which is
geographic areas: Three nationwide three bidders. One of these bidders was defined as an entity that, together with
licenses, 30 Regional Economic Area a small business that won a total of two its affiliates and controlling principals,
Group (EAG) Licenses, and 875 licenses.59 has average gross revenues that are not
Economic Area (EA) Licenses. Of the 54. Upper 700 MHz Band Licenses. more than $3 million for the preceding
908 licenses auctioned, 693 were sold.51 The Commission released a Report and three years.65 The SBA has approved
Thirty-nine small businesses won 373 Order authorizing service in the Upper these small size standards.66 An auction
licenses in the first 220 MHz auction. A 700 MHz band.60 An auction for these of 740 licenses (one license in each of
second auction included 225 licenses: the 734 MSAs/RSAs and one license in
216 EA licenses and 9 EAG licenses. 54 Service Rules for the 746–764 MHz Bands, and each of the six Economic Area
Fourteen companies claiming small Revisions to Part 27 of the Commission’s Rules, Groupings (EAGs)) commenced on
Second Report and Order, 15 FCC Rcd 5299 (2000).
business status won 158 licenses.52 A Service rules were amended in 2007, but no
August 27, 2002, and closed on
third auction included four licenses: 2 changes were made to small business size
BEA licenses and 2 EAG licenses in the categories. See Service Rules for the 698–746, 747– Opinion and Order, 16 FCC Rcd 1239 (2001).
220 MHz Service. No small or very 762 and 777–792 MHz Bands, WT Docket No. 06– Service rules were amended in 2007, but no
150, Revision of the Commission’s Rules to Ensure changes were made to small business size
small business won any of these Compatibility with Enhanced 911 Emergency categories. See Service Rules for the 698–746, 747–
licenses.53 Calling Systems, CC Docket No. 94–102, Section 762 and 777–792 MHz Bands, WT Docket No. 06–
68.4(a) of the Commission’s Rules Governing 150, Revision of the Commission’s Rules to Ensure
53. 700 MHz Guard Band Licenses. In Hearing Aid-Compatible Telephones, WT Docket Compatibility with Enhanced 911 Emergency
the 700 MHz Guard Band Order, the No. 01–309, Biennial Regulatory Review— Calling Systems, CC Docket No. 94–102, Section
Commission adopted size standards for Amendment of Parts 1, 22, 24, 27, and 90 to 68.4(a) of the Commission’s Rules Governing
‘‘small businesses’’ and ‘‘very small Streamline and Harmonize Various Rules Affecting Hearing Aid-Compatible Telephones, WT Docket
Wireless Radio Services, WT Docket 03–264, No. 01–309, Biennial Regulatory Review—
businesses’’ for purposes of determining Former Nextel Communications, Inc. Upper 700 Amendment of Parts 1, 22, 24, 27, and 90 to
their eligibility for special provisions MHz Guard Band Licenses and Revisions to Part 27 Streamline and Harmonize Various Rules Affecting
such as bidding credits and installment of the Commission’s Rules, WT Docket No. 06–169, Wireless Radio Services, WT Docket 03–264,
Implementing a Nationwide, Broadband, Former Nextel Communications, Inc. Upper 700
Interoperable Public Safety Network in the 700 MHz Guard Band Licenses and Revisions to Part 27
46 Amendment of Part 90 of the Commission’s
MHz Band, PS Docket No. 06–229, Development of of the Commission’s Rules, WT Docket No. 06–169,
Rules to Provide For the Use of the 220–222 MHz Operational, Technical and Spectrum Requirements Implementing a Nationwide, Broadband,
Band by the Private Land Mobile Radio Service, for Meeting Federal, State and Local Public Safety Interoperable Public Safety Network in the 700
Third Report and Order, 12 FCC Rcd 10943, 11068– Communications Requirements Through the Year MHz Band, PS Docket No. 06–229, Development of
70 paras. 291–295 (1997). 2010, WT Docket No. 96–86, Report and Order and Operational, Technical and Spectrum Requirements
47 Id. at 11068 para. 291. Further Notice of Proposed Rulemaking, 22 FCC for Meeting Federal, State and Local Public Safety
48 Id. Rcd 8064 (2007). Communications Requirements Through the Year
49 See Letter to Daniel Phythyon, Chief, Wireless 55 Id. at 5343 para. 108. 2010, WT Docket No. 96–86, Report and Order and
Telecommunications Bureau, Federal 56 Id. Further Notice of Proposed Rulemaking, 22 FCC
Communications Commission, from Aida Alvarez, 57 Id. At 5343 para. 108 n.246 (for the 746–764 Rcd 8064 (2007).
61 See ‘‘Auction of Licenses for 747–762 and 777–
Administrator, Small Business Administration, MHz and 776–704 MHz bands, the Commission is
dated January 6, 1998. exempt from 15 U.S.C. 632, which requires Federal 792 MHz Bands (Auction No. 31) Is Rescheduled,’’
50 See generally ‘‘220 MHz Service Auction agencies to obtain Small Business Administration public notice, 16 FCC Rcd 13079 (WTB 2003).
62 See Reallocation and Service Rules for the 698–
Closes,’’ public notice, 14 FCC Rcd 605 (WTB approval before adopting small business size
1998). standards). 746 MHz Spectrum Band (Television Channels 52–
51 See ‘‘FCC Announces It is Prepared to Grant 58 See ‘‘700 MHz Guard Bands Auction Closes: 59), Report and Order, 17 FCC Rcd 1022 (2002).
63 Id. at 1087–88 para. 172.
654 Phase II 220 MHz Licenses After Final Payment Winning Bidders Announced,’’ public notice, 15
is Made,’’ public notice, 14 FCC Rcd 1085 (WTB FCC Rcd 18026 (2000). 64 Id.
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1999). 59 See ‘‘700 MHz Guard Bands Auctions Closes: 65 Id. at 1088 para. 173.
52 See ‘‘Phase II 220 MHz Service Spectrum Winning Bidders Announced,’’ public notice, 16 66 See Letter to Thomas Sugrue, Chief, Wireless
Auction Closes,’’ public notice, 14 FCC Rcd 11218 FCC Rcd 4590 (WTB 2001). Telecommunications Bureau, Federal
(WTB 1999). 60 Service Rules for the 746–764 and 776–794 Communications Commission, from Aida Alvarez,
53 See ‘‘Multi-Radio Service Auction Closes,’’ MHz Bands, and Revisions to Part 27 of the Administrator, Small Business Administration,
public notice, 17 FCC Rcd 1446 (WTB 2002). Commission’s Rules, Second Memorandum dated August 10, 1999.

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50072 Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Rules and Regulations

September 18, 2002. Of the 740 licenses 58. In this Report and Order, the support of their proposals.74 Other
available for auction, 484 licenses were Commission clarifies that automatic commenters oppose any rate regulation
sold to 102 winning bidders. Seventy- roaming is a common carrier obligation and, in turn, have submitted their own
two of the winning bidders claimed for CMRS carriers, requiring them to economic analyses disputing the theory
small business, very small business or provide roaming services to other and evidence used to justify the
entrepreneur status and won a total of carriers upon reasonable request and on imposition of rate regulation.75 In the
329 licenses.67 A second auction a just, reasonable, and non- Report and Order, the Commission
commenced on May 28, 2003, and discriminatory basis pursuant to declines to impose a price cap or any
closed on June 13, 2003, and included Sections 201 and 202 of the other form of rate regulation on the fees
256 licenses: 5 EAG licenses and 476 Communications Act. In adopting this carriers pay each other when one
CMA licenses.68 Seventeen winning rule, the Commission determined that carrier’s customer roams on another
bidders claimed small or very small when a reasonable request is made by a carrier’s network. The Commission
business status and won sixty licenses, technologically compatible CMRS believes that the rates individual
and nine winning bidders claimed carrier, a host CMRS carrier must carriers pay for automatic roaming
entrepreneur status and won 154 provide automatic roaming to the services should be determined in the
licenses.69 requesting carrier outside of the marketplace through negotiations
requesting carrier’s home market, between the carriers, subject to the
D. Description of Projected Reporting,
consistent with the protections of statutory requirement that any rates
Recordkeeping, and Other Compliance
Sections 201 and 202 of the charged be reasonable and non-
Requirements for Small Entities
Communications Act. discriminatory.
56. The only reporting or 59. In the Report and Order, the 61. The Commission reiterates that
recordkeeping costs to be incurred are Commission finds that the scope of the general policy regarding CMRS
administrative costs to ensure that an automatic roaming services includes services is to allow competitive market
entity’s practices are in compliance with only services offered by CMRS carriers forces, rather than regulations, to
the rule. The only compliance that are real-time, two-way switched promote the development of wireless
requirement is that CMRS carriers must voice or data services that are services. On balance, taking into
provide automatic roaming to any interconnected with the public switched consideration the concerns raised in the
requesting technologically compatible network and utilize an in-network record by certain CMRS carriers 76 and
CMRS carrier outside of the requesting switching facility that enables the its preference for allowing competitive
CMRS carrier’s home market on provider to reuse frequencies and market forces to govern rate and rate
reasonable and non-discriminatory accomplish seamless hand-offs of structures for wireless services, the
terms and conditions. This rule applies subscriber calls. In addition, the Commission expressly declines to
to CMRS carriers that offer real-time, Commission determines that it would impose any corresponding rate
two-way switched voice or data service serve the public interest to extend regulation of automatic roaming
over digital network that is automatic roaming obligation to push- services.
interconnected with the public switched to-talk and text messaging (SMS). 62. In the Reexamination NPRM, the
network and utilize an in-network However, the Commission declines to Commission sought comment on
switching facility that enables the adopt a rule extending the automatic whether a carrier should be required to
provider to reuse frequencies and roaming obligation beyond that to enter into an automatic roaming
accomplish seamless hand-offs of offerings that do not fall within the arrangement on a nondiscriminatory
subscriber calls.70 scope of the automatic roaming services’ basis with a facilities-based-competitor
definition, such as non-interconnected in the same market. In the Report and
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities and services or features or services that are Order, the Commission determines that
Significant Alternatives Considered classified as information services or to the automatic roaming obligation does
services that are not CMRS.72 not include an in-market or home
57. The RFA requires an agency to 60. In response to the Reexamination roaming requirement. The Commission
describe any significant alternatives that NPRM, some of the commenters finds that an automatic roaming request
it has considered in reaching its requested that the Commission cap the in the home area of a requesting CMRS
proposed approach, which may include rates that a carrier may charge other carrier, the area where the requesting
the following four alternatives (among carriers for automatic roaming service
others): (1) The establishment of based on some benchmark of retail 74 See, e.g., Leap Comments, Attachment A (ERS

differing compliance or reporting rates.73 Some of these commenters have Group, Wholesale Pricing Methods of Nationwide
requirements or timetables that take into also submitted economic analyses in
Carriers Providing Commercial Mobile Radio
account the resources available to small Services: An Economic Analysis); SouthernLINC
Comments, Attachment B (R. Preston McAfee, The
entities; (2) the clarification, 72 Appropriate Regulatory Treatment for Economics of Wholesale Roaming in CMRS
consolidation, or simplification of Broadband Access to the Internet Over Wireless Markets); SouthernLINC Reply Comments,
compliance or reporting requirements Networks, Declaratory Ruling, FCC No. 07–30, Attachment B (R. Preston McAfee, The Economics
under the rule for small entities; (3) the paras. 11–12 (rel. Mar. 23, 2007) (‘‘Wireless of Wholesale Roaming in CMRS Markets: Reply
Broadband Internet Access Declaratory Ruling’’). Comments); Leap Reply Comments, Attachment A
use of performance, rather than design, 73 See Leap Comments at 17, 19–20 (David S. Sibley, The Existence of Regional,
standards; and (4) an exemption from (recommending that, in geographic areas where Technology-Specific Wholesale Antitrust Markets
coverage of the rule, or any part thereof, there are three or fewer facilities-based carriers from for Roaming Services); Leap Reply Comments,
for small entities.71 which the carrier seeking automatic roaming service Attachment B (ERS Group, A Further Analysis of
could obtain such service, the Commission prohibit the Wholesale Pricing Methods of Nationwide
a facilities-based carrier from charging rates for Carriers Providing Commercial Mobile Radio
67 See ‘‘Lower 700 MHz Band Auction Closes,’’
automatic roaming that exceed the carrier’s average Service).
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public notice, 17 FCC Rcd 17272 (WTB 2002). 75 See, e.g., Rosston/Sprint Nextel Comments;
68 See ‘‘Lower 700 MHz Band Auction Closes,’’
retail revenue per minute for that area). See also
SouthernLINC Comments at 49 (proposing that the Rosston/Sprint Nextel Reply Comments; Hazlett/
public notice, 18 FCC Rcd 11873 (WTB 2003). Commission establish a presumption that a carrier’s Cingular Reply Comments; Furchtgott-Roth/T-
69 Id.
roaming rates in a region are unreasonable if they Mobile Reply Comments.
70 See Report and Order, supra, paras. 28–29.
exceed the lowest prevailing per-minute retail rates 76 See, e.g., Cingular Comments at i, 18–30; NDNC
71 See 5 U.S.C. 603(c). that it charges its own subscribers in that region). Comments at 3; Nextel Partners Comments at 5–6.

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Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Rules and Regulations 50073

CMRS carrier has the spectrum to 65. In the Report and Order, the Governmental Affairs Bureau, Reference
compete directly with the would-be host Commission also declines to impose an Information Center, shall send a copy of
carrier, does not serve public interest affirmative obligation on CMRS carriers this Report and Order and the FNPRM,
goals of encouraging facilities-based to post their roaming rates. The including the Final Regulatory
service and supporting consumer Commission notes that roaming Flexibility Analysis and the Initial
expectations of seamless coverage when agreements are generally confidential Regulatory Flexibility Analysis, to the
traveling outside the home area. and filing them would impose Chief Counsel for Advocacy of the Small
63. In the Reexamination NPRM, the administrative costs on the carriers. In Business Administration.
Commission sought comment on access light of the adoption of an automatic
to push-to-talk, dispatch, or other data List of Subjects in 47 CFR Part 20
roaming rule, the Commission finds that
roaming. Some carriers advocate that the available remedies for redress are Communications common carriers,
the Commission should adopt an sufficient to address disputes that may Communications equipment, Radio.
automatic roaming rule that requires arise. Therefore, the Commission finds Federal Communications Commission.
carriers to permit roaming access to all it unnecessary to burden CMRS carriers William F. Caton,
technical features of their systems, and/ by requiring them to file roaming Deputy Secretary.
or require carriers to make the same agreements.
features accessible to all of their Final Rules
roaming partners (e.g., push-to-talk, F. Report to Congress
dispatch, text messaging (SMS) or other 66. The Commission will send a copy ■ For the reasons discussed in the
data roaming services). Based on the of the Report and Order, including this preamble, the Federal Communications
record, in the Report and Order, the FRFA, in a report to be sent to Congress Commission amends 47 CFR part 20 as
Commission finds that it would serve and the Government Accountability follows:
public interest to extend automatic Office pursuant to the Congressional PART 20—COMMERCIAL MOBILE
roaming obligations to push-to-talk and Review Act.77 In addition, the RADIO SERVICES
SMS. However, the Commission Commission will send a copy of the
declines to adopt a rule extending the Report and Order, including the FRFA, ■ 1. The authority citation for part 20
automatic roaming obligation beyond to the Chief Counsel for Advocacy of the continues to read as follows:
that to offerings that do not fall within SBA. A copy of the Report and Order Authority: 47 U.S.C. 154, 160, 251–254,
the scope of the automatic roaming and the FRFA (or summaries thereof) 303 and 332 unless otherwise noted.
services’ definition, such as non- will also be published in the Federal
interconnected services or features. Register.78 ■ 2. Section 20.3 is amended by adding
With respect to push-to-talk and SMS, the following terms alphabetically to
the Commission finds that such Ordering Clauses read as follows:
offerings are typically bundled as a 67. Accordingly, it is ordered that, § 20.3 Definitions.
feature on the handset with other CMRS pursuant to the authority contained in
services, such as real-time, two-way Sections 1, 4(i), 201, 202, 251(a), 253, * * * * *
Automatic Roaming. With automatic
switched mobile voice or data, which 303(r), and 332(c)(1)(B) of the
roaming, under a pre-existing
are interconnected with the public Communications Act of 1934, as
contractual agreement between a
switched network. Thus, consumers amended, 47 U.S.C. 151, 154(i), 201,
consider push-to-talk and SMS as subscriber’s home carrier and a host
202, 251(a), 253, 303(r), and
features that are typically offered as carrier, a roaming subscriber is able to
332(c)(1)(B), and Section 1.425 of the
adjuncts to basic voice services, and originate or terminate a call in the host
Commission’s rules, 47 CFR 1.425, this
expect the same seamless connectivity carrier’s service area without taking any
Report and Order and FNPRM is hereby
with respect to these features and special actions.
adopted.
capabilities as they travel outside their 68. It is further ordered that Sections * * * * *
home network service areas. 20.3 and 20.12 of the Commission’s Home Carrier. For automatic roaming,
64. With respect to non- rules are amended as specified in a home carrier is the facilities-based
interconnected data service, the Appendix A, and such rule amendments CMRS carrier with which a subscriber
Commission finds that it is not in the shall be effective 60 days after the date has a direct contractual relationship. A
public interest at this time to impose an of publication of the text thereof in the home carrier may request automatic
automatic roaming obligation. In the Federal Register. roaming service from a host carrier on
absence of a clear showing in the record 69. It is further ordered that the Joint behalf of its subscribers.
that it would serve the public interest, Petition for Commission Inquiry Home Market. For automatic roaming,
the Commission believes that open Pursuant to Section 403 of the a CMRS carrier’s home market is
access to the non-interconnected Communications Act filed by AIRPEAK defined as any geographic location
features of a competitor’s network might Communications, LLC, Airtel Wireless where the home carrier has a wireless
undercut incentives to differentiate LLC, Cleveland Unlimited, Inc., Leap license or spectrum usage rights that
products and could chill innovation. It Wireless International, Inc., MetroPCS could be used to provide CMRS.
may also adversely affect business Communications, Inc., Punxsutawney Host Carrier. For automatic roaming,
decisions to build out facilities for Communications, Rural the host carrier is a facilities-based
facilities-based competition and reduce Telecommunications Group, Inc., and CMRS carrier on whose system a
the incentives to access the spectrum Southern Communications Services, subscriber roams when outside its home
through other means such as initial Inc. d/b/a SouthernLINC Wireless, on carrier’s home market.
spectrum licensing or secondary April 25, 2006 is hereby denied. * * * * *
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markets. For these reasons, the 70. It is further ordered that the Manual Roaming. With manual
Commission declines to impose an Commission’s Consumer and roaming, a subscriber must establish a
automatic roaming requirement on non- relationship with the host carrier on
interconnected features, such as stand 77 See 5 U.S.C. 801(a)(1)(A). whose system he or she wants to roam
alone dispatch, at this time. 78 See 5 U.S.C. 604(b). in order to make a call. Typically, the

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50074 Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Rules and Regulations

roaming subscriber accomplishes this in (d) Automatic Roaming. Upon a 12th Street, SW., Room CY–B402,
the course of attempting to originate a reasonable request, it shall be the duty Washington, DC 20554, telephone 1–
call by giving a valid credit card number of each host carrier subject to paragraph 800–378–3160 or http://
to the carrier providing the roaming (a)(2) of this section to provide www.BCPIWEB.com.
service. automatic roaming to any Finger Lakes Radio Group, Inc.’s
* * * * * technologically compatible home proposal was formerly a rule change to
■ 3. Section 20.12 is amended by
carrier, outside of the requesting home Section 73.202(b), the FM Table of
revising paragraphs (a) and (c) and carrier’s home market, on reasonable Allotments. See 71 FR 30856 (May 31,
adding paragraph (d) as follows: and nondiscriminatory terms and 2006). As a result of changes to the
conditions. Commission’s processing rules,
§ 20.12 Resale and roaming. [FR Doc. E7–17122 Filed 8–29–07; 8:45 am] modifications of FM channels for
(a)(1) Scope of Manual Roaming and BILLING CODE 6712–01–P existing stations are no longer listed in
Resale. Paragraph (c) of this section is Section 73.202(b) and are instead
applicable to providers of Broadband reflected in the Media Bureau’s
Personal Communications Services (part FEDERAL COMMUNICATIONS Consolidated Data Base System (CDBS).
24, subpart E of this chapter), Cellular COMMISSION See Revision of Procedures Governing
Radio Telephone Service (part 22, Amendments to FM Table of Allotments
subpart H of this chapter), and 47 CFR Part 73 and Changes of Community of License
specialized Mobile Radio Services in the [DA 07–3425; MB Docket No. 06–97; RM– in the Radio Broadcast Services, Report
800 MHz and 900 MHz bands (included 11254] and Order, 21 FCC Rcd 14212
in part 90, subpart S of this chapter) if (December 20, 2006). Nevertheless, a
such providers offer real-time, two-way Radio Broadcasting Services; Dundee summary of the Report and Order in the
switched voice or data service that is and Odessa, NY instant proceeding is being published in
interconnected with the public switched the Federal Register because the
AGENCY: Federal Communications counterproposal involved a proposed
network and utilizes an in-network
Commission. amendment to Section 73.202(b).
switching facility that enables the
provider to re-use frequencies and ACTION: Final rule; dismissal. Although the Report and Order set forth
accomplish seamless hand-offs of SUMMARY: The staff dismisses a
an effective date of September 10, 2007,
subscriber calls. The scope of paragraph counterproposal filed by Bible Station WFLR–FM’s license and
(b) of this section, concerning the resale Broadcasting Network, Inc. to allot construction permit will be modified
rule, is further limited so as to exclude Channel 238A to Savona, New York, as effective 30 days after publication of
from the requirements of that paragraph a first local aural service. The Media this summary in the Federal Register in
those Broadband Personal Bureau also modifies its Consolidated compliance with Sections 1.427 and
Communications Services C, D, E, and Data Base System to reflect Channel 1.429 of the Commission’s rules.
F block licensees that do not own and 238A at Odessa, New York, as the This document is not subject to the
control and are not owned and reserved assignment for Station WFLR– Congressional Review Act. (The
controlled by firms also holding cellular FM in lieu of Channel 238A at Dundee, Commission is, therefore, not required
A or B block licenses. New York in response to a proposal to submit a copy of this Report and
(2) Scope of Automatic Roaming. filed by Finger Lakes Radio Group, Inc., Order to GAO, pursuant to the
Paragraph (d) of this section is and modifies Station WFLR–FM’s Congressional Review Act, see 5 U.S.C.
applicable to CMRS carriers if such license and construction permit 801(a)(1)(A) because the
carriers offer real-time, two-way accordingly. The reference coordinates counterproposal was dismissed.)
switched voice or data service that is for Channel 238A at Odessa, NY, are List of Subjects in 47 CFR Part 73
interconnected with the public switched 42–20–38 NL and 76–53–03 WL. With
network and utilizes an in-network Radio, Radio broadcasting.
this action, the proceeding is
switching facility that enables the terminated. See SUPPLEMENTARY Federal Communications Commission.
carrier to re-use frequencies and INFORMATION. John A. Karousos,
accomplish seamless hand-offs of Assistant Chief, Audio Division, Media
subscriber calls. Paragraph (d) of this ADDRESSES: Federal Communications
Bureau.
section is also applicable to the Commission, 445 12th Street, SW.,
[FR Doc. E7–17021 Filed 8–29–07; 8:45 am]
provision of push-to-talk and text- Washington, DC 20554.
BILLING CODE 6712–01–P
messaging service by CMRS carriers. FOR FURTHER INFORMATION CONTACT:
* * * * * Andrew J. Rhodes, Media Bureau, (202)
(c) Manual Roaming. Each carrier 418–2180. FEDERAL COMMUNICATIONS
subject to paragraph (a)(1) of this section SUPPLEMENTARY INFORMATION: This is a COMMISSION
must provide mobile radio service upon synopsis of the Commission’s Report
request to all subscribers in good and Order, MB Docket No. 06–97, 47 CFR Part 76
standing to the services of any carrier adopted July 25, 2007, and released July
subject to paragraph (a)(1) of this 27, 2007. The full text of this [CS Docket No. 95–184; MM Docket No. 92–
section, including roamers, while such Commission decision is available for 260; FCC 07–111]
subscribers are located within any inspection and copying during normal Telecommunications Services Inside
portion of the licensee’s licensed service business hours in the FCC Reference Wiring Customer Premises Equipment,
area where facilities have been Information Center (Room CY–A257), Implementation of the Cable Television
rfrederick on PROD1PC67 with RULES

constructed and service to subscribers 445 12th Street, SW., Washington, DC Consumer Protection and Competition
has commenced, if such subscribers are 20554. The complete text of this Act of 1992: Cable Home Wiring
using mobile equipment that is decision may also be purchased from
technically compatible with the the Commission’s copy contractor, Best AGENCY:Federal Communications
licensee’s base stations. Copy and Printing, Inc., Portals II, 445 Commission.

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