Comment Sought on Small Business Size Standards for Auctions of Licenses in the 2.5 GHz Band

Published date19 December 2019
Citation84 FR 69696
Record Number2019-27425
SectionProposed rules
CourtFederal Communications Commission
Federal Register, Volume 84 Issue 244 (Thursday, December 19, 2019)
[Federal Register Volume 84, Number 244 (Thursday, December 19, 2019)]
                [Proposed Rules]
                [Pages 69696-69697]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-27425]
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                FEDERAL COMMUNICATIONS COMMISSION
                47 CFR Parts 1, 27
                [WT Docket No. 18-120; DA 19-1184; FRS 1685]
                Comment Sought on Small Business Size Standards for Auctions of
                Licenses in the 2.5 GHz Band
                AGENCY: Federal Communications Commission.
                ACTION: Comments invited on small business size standards.
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                SUMMARY: In this document, the Wireless Telecommunications Bureau (WTB)
                and the Office of Economics and Analytics (OEA) seek comment on the
                small business size standards to be used to determine an entity's
                eligibility for small business bidding credits in an auction of
                unassigned Educational Broadband Service (EBS) spectrum in the 2.5 GHz
                band.
                DATES: Comments are due on or before January 21, 2020, and reply
                comments are due on or before February 3, 2020.
                ADDRESSES: Comments may be filed using the Commission's Electronic
                Comment Filing System (ECFS) or by filing paper copies. Electronic
                Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (May 1,
                1998). All filings in response to the 2.5 GHz Small Business Size
                Standards Public Notice must refer to WT Docket No. 18-120. The
                Commission strongly encourages interested parties to file comments
                electronically.
                 Electronic Filers: Comments may be filed electronically using the
                internet by accessing the ECFS: https://www.fcc.gov/ecfs/. Filers
                should follow the instructions provided on the website for submitting
                comments. In completing the transmittal screen, filers should include
                their full name, U.S. Postal Service mailing address, and the
                applicable docket number, WT Docket No. 18-120.
                 Paper Filers: Parties who choose to file by paper must file an
                original and one copy of each filing. If more than one docket or
                rulemaking number appears in the caption of this proceeding, filers
                must submit two additional copies for each additional docket or
                rulemaking number. Filings can be sent by hand or messenger delivery,
                by commercial overnight courier, or by first-class or overnight U.S.
                Postal Service mail. All filings must be addressed to the Commission's
                Secretary, Office of the Secretary, Federal Communications Commission.
                 All hand-delivered or messenger-delivered paper filings for the
                Commission's Secretary must be delivered to FCC Headquarters at 445
                12th St. SW, Room TW-A325, Washington, DC 20554. The filing hours are
                8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with
                rubber bands or fasteners. Any envelopes and boxes must be disposed of
                before entering the building.
                 Commercial overnight mail (other than U.S. Postal Service Express
                Mail and Priority Mail) must be sent to 9050 Junction Drive, Annapolis
                Junction, MD 20701.
                 U.S. Postal Service first-class, Express, and Priority mail must be
                addressed to 445 12th Street SW, Washington, DC 20554.
                FOR FURTHER INFORMATION CONTACT: Mary Lovejoy in the Auctions Division
                of the Office of Economics and Analytics at (202) 418-0660.
                SUPPLEMENTARY INFORMATION: This is a summary of the Public Notice (2.5
                GHz Small Business Size Standards Public Notice), WT Docket No. 18-120,
                DA 19-1184, released on November 15, 2019. The complete text of the 2.5
                GHz Small Business Size Standards Public Notice is available for public
                inspection and copying from 8:00 a.m. to 4:30 p.m. Eastern Time (ET)
                Monday through Thursday or from 8:00 a.m. to 11:30 a.m. ET on Fridays
                in the FCC Reference Information Center, 445 12th Street SW, Room CY-
                A257, Washington, DC 20554. The complete text is also available on the
                Commission's website at www.fcc.gov/auctions or by using the search
                function for WT Docket No. 18-120 on the Commission's ECFS web page at
                www.fcc.gov/ecfs. Alternative formats are available to persons with
                disabilities by sending an email to [email protected] or by calling the
                Consumer & Governmental Affairs Bureau at (202) 418-0530 (voice), (202)
                418-0432 (TTY). Pursuant to Sections 1.415 and 1.419 of the
                Commission's rules, 47 CFR 1.415, 1.419, interested parties may file
                comments and reply comments on or before the dates indicated on the
                first page of this document.
                 1. In the 2.5 GHz Small Business Size Standards Public Notice, the
                WTB and OEA seek comment on the small business size standards to be
                used to determine an entity's eligibility for small business bidding
                credits in an auction of unassigned Educational Broadband Service (EBS)
                spectrum in the 2.5 GHz band. In the 2.5. GHz Report and Order, 84 FR
                57343, October 25, 2019, the Commission modernized the regulatory
                framework for the 2.5 GHz band to make this swath of vital mid-band
                spectrum available for
                [[Page 69697]]
                advanced wireless services, including 5G, with unassigned spectrum to
                be made available for commercial use via competitive bidding following
                the completion of a Rural Tribal priority filing window. In so doing,
                the Commission adopted small business size standards and associated
                bidding credits for new EBS licenses to improve the ability of small
                businesses to attract the capital necessary to participate meaningfully
                in the auction of 2.5 GHz spectrum.
                 2. The Notice of Proposed Rulemaking (NPRM) in this proceeding, 83
                FR 26396, June 7, 2018, proposed to conduct any auction of EBS licenses
                in conformity with the Commission's Part 1 competitive bidding rules.
                The NPRM also proposed not to apply designated entity preferences in
                such auctions, and accordingly did not propose any small business size
                standards under which qualifying small businesses would receive bidding
                credits. In comments and ex parte letters submitted in response to the
                NPRM, several parties supported the adoption of bidding credits in an
                EBS auction to encourage the participation of small service providers.
                Upon consideration of the record in this proceeding, the Commission
                concluded that using bidding credits in competitive bidding for EBS
                licenses in the 2.5 GHz band would be an effective tool to achieve the
                statutory objective of promoting the participation of designated
                entities in the provision of spectrum-based services. Noting that the
                removal of the eligibility restriction and educational use requirements
                will attract more commercial operators to the 2.5 GHz band, the
                Commission found that bidding credits should help facilitate greater
                participation in any auction of EBS licenses and that offering bidding
                credits to designated entities should improve the ability of small
                businesses to attract the capital necessary to meaningfully participate
                in such an auction. Thus, the 2.5 GHz Report and Order adopted small
                business size standards and associated bidding credits for new EBS
                licenses.
                 3. A Federal department or agency that adopts a size standard for
                categorizing a business concern as a small business is required to
                consult with the Small Business Administration (SBA) prior to proposing
                the size standard for public comment and subsequently, it is required
                to obtain the SBA Administrator's approval of the size standard. In
                this proceeding, because the NPRM did not propose to apply designated
                entity preferences in auctions of new EBS licenses in the 2.5 GHz band,
                the NPRM did not propose any size standards under which qualifying
                small businesses would receive bidding credits. Therefore, the
                Commission did not consult with the SBA regarding proposed size
                standards for new EBS licenses in the 2.5 GHz band. However, in the 2.5
                GHz Report and Order, the Commission directed the WTB, in conjunction
                with OEA, to seek further comment on the two adopted small business
                size standards and to consult with the SBA and obtain its approval of
                the adopted size standards in advance of any auction of 2.5 GHz EBS
                overlay licenses, as required by law.
                 4. Accordingly, we seek comment on the definitions of a ``small
                business'' as an entity that, together with its affiliates, its
                controlling interests, and the affiliates of its controlling interests,
                has average gross revenues that are not more than $55 million for the
                preceding five years, and a ``very small business'' as an entity that,
                together with its affiliates, its controlling interests, and the
                affiliates of its controlling interests, has average gross revenues
                that are not more than $20 million for the preceding five years.
                Pursuant to the 2.5 GHz Report and Order, a winning bidder in an
                auction of EBS licenses that qualifies as a ``small business'' would be
                eligible for a 15% bidding credit, and a winning bidder qualifying as a
                ``very small business'' would be eligible for a 25% bidding credit.
                 5. Copies of the comments and replies filed in response to the 2.5
                GHz Small Business Size Standards Public Notice will be provided to the
                SBA consistent with SBA procedures for approval of size standards
                prescribed by Federal departments and agencies.
                 6. Ex Parte Rules. This proceeding has been designated as a
                ``permit-but-disclose'' proceeding in accordance with the Commission's
                ex parte rules. Persons making ex parte presentations must file a copy
                of any written presentation or a memorandum summarizing any oral
                presentation within two business days after the presentation (unless a
                different deadline applicable to the Sunshine period applies). Persons
                making oral ex parte presentations are reminded that memoranda
                summarizing the presentation must (1) list all persons attending or
                otherwise participating in the meeting at which the ex parte
                presentation was made, and (2) summarize all data presented and
                arguments made during the presentation. If the presentation consisted
                in whole or in part of the presentation of data or arguments already
                reflected in the presenter's written comments, memoranda or other
                filings in the proceeding, the presenter may provide citations to such
                data or arguments in his or her prior comments, memoranda, or other
                filings (specifying the relevant page and/or paragraph numbers where
                such data or arguments can be found) in lieu of summarizing them in the
                memorandum. Documents shown or given to Commission staff during ex
                parte meetings are deemed to be written ex parte presentations and must
                be filed consistent with rule 1.1206(b). In proceedings governed by
                rule 1.49(f) or for which the Commission has made available a method of
                electronic filing, written ex parte presentations and memoranda
                summarizing oral ex parte presentations, and all attachments thereto,
                must be filed through the electronic comment filing system available
                for that proceeding, and must be filed in their native format (e.g.,
                .doc, .xml, .ppt, searchable .pdf). Participants in this proceeding
                should familiarize themselves with the Commission's ex parte rules.
                Federal Communications Commission.
                William Huber,
                Associate Chief, Auctions Division, Office of Economics and Analytics.
                [FR Doc. 2019-27425 Filed 12-18-19; 8:45 am]
                 BILLING CODE 6712-01-P
                

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