FR 2021-01304

The recent rule update by the Federal Communications Commission (FCC) signifies a noteworthy shift in the landscape of broadband internet services, specifically focusing on the technological aspect known as over-the-air reception devices (OTARD). This adjustment broadens the scope of OTARD rules to also cover hub and relay antennas utilized in distributing broadband-only wireless services.

General Summary

The document outlines how the FCC has advanced its regulations to extend protections previously exclusive to certain antennas. By doing so, the FCC aims to support and expedite the deployment of high-speed internet services, particularly benefiting rural and underserved regions. The new rule maintains certain restrictions, such as requirements for property ownership and antenna size limitations. This effort is designed to ensure that visual and environmental impacts remain minimal, aligning with ongoing safety and historical preservation considerations.

Significant Issues and Concerns

While the document endeavors to capture the comprehensive nature of the rule change, it contains technical jargon and regulatory nuances that might not be easily understood by those outside the legal or telecommunications fields. Furthermore, the document doesn't fully elucidate the economic ramifications of these changes on small businesses. While citing examples like Starry's increased efficiency by 25-30%, the broader financial impact remains vaguely described.

Another concern lies with radio frequency (RF) safety, a topic of public interest. The document states that the rule maintains existing RF emission standards, but additional clarification could reassure citizens about safety levels.

The potential effects upon property rights and existing lease agreements also demand a clearer explanation. Though the FCC reassures that property owners' rights under the OTARD rule remain recognized, the blend of technical language and regulatory references may hinder full comprehension for those directly impacted.

Public and Stakeholder Impact

For the general public, this rule change could mean improved internet services, especially in remote or less dense areas. The enhanced accessibility aligns with the FCC's broader objective to narrow the digital divide, paving the way for better access to telehealth, online education, and other internet-driven services.

Specific stakeholders, such as small fixed wireless service providers, stand to gain significantly from reduced barriers to market entry and expansion. By easing regulatory constraints, these entities can potentially site and operate their equipment more rapidly and at lower costs, thus fostering competition and innovation within the market.

Conversely, local governments have voiced concerns about the implications for zoning laws and possible diminishment of their jurisdiction. The document acknowledges opposition from municipal bodies but does not comprehensively address these concerns, leaving them potentially exposed to conflicts over local regulatory authority.

Conclusion

This FCC ruling represents a meaningful endeavor to modernize infrastructure regulations conducive to improved broadband access. While it holds promise for enhanced services and competitive fairness, the effectiveness of its implementation could benefit from simplified explanations and more substantial assurances addressing financial, technical, and jurisdictional apprehensions. To ensure smooth adoption of these changes, a clarifying dialogue with affected communities and stakeholders will be crucial. This would not only improve understanding and cooperation but also optimize the positive impacts envisioned by the rule change.

The document makes several references to financial benchmarks and size standards used by the Small Business Administration (SBA) and the Internal Revenue Service (IRS) to categorize small entities. These references to money are important for understanding the scale and impact of the new rules on different types of organizations.

Revenue Benchmarks for Small Entities

The IRS establishes a revenue benchmark of $50,000 or less for small exempt organizations to meet their annual electronic filing requirements. This figure illustrates the IRS's criteria for what constitutes a small exempt organization in terms of revenue. In the 2018 tax year, there were approximately 571,709 small exempt organizations in the United States reporting revenues of $50,000 or less, highlighting a significant number of organizations that could potentially be impacted by changes in regulatory requirements.

SBA Size Standards

The closest applicable SBA category referenced in the document is "All Other Telecommunications," which defines a small business as any entity with gross annual receipts of $3 million or less. This size standard is crucial for determining which firms qualify as small entities, which in turn influences the expected economic impact of the FCC's regulatory changes on these businesses.

The document also provides data on the distribution of firms by their annual receipts in the "All Other Telecommunications" category. Of these firms, 1,400 reported gross annual receipts of less than $25 million, with an additional 15 firms having annual receipts between $25 million and $49,999,999. These figures help to put into context the scale of businesses that might be small according to the SBA's standards and thus need consideration when assessing the rule changes.

In another category, "Lessors of Residential Buildings and Dwellings," a business is classified as small if it grosses $27.5 million or less annually. The data shows that a vast majority of these firms operated with annual receipts of less than $25 million, suggesting most in this sector would be considered small entities.

Financial Impact on Small Entities

The RFA requires that the FCC consider the economic impact of its rules on small entities. In this context, the financial metrics provided are vital for evaluating the impact of the expanded OTARD rule on small businesses. However, the document does not provide a comprehensive analysis of how the financial benchmarks relate to the potential financial implications of the new rules on these entities. This lack of detailed economic assessment corresponds to one of the identified issues — the need for more clarity on the financial impact on small businesses.

While the document acknowledges potential benefits such as reduced construction timelines and significant cost savings for wireless providers by allowing easier installation of fixed wireless antennas, it does not quantify these impacts. Therefore, while the financial size standards help frame which entities might be affected, the financial impact remains somewhat vague without specific cost-benefit data to show the actual savings or economic changes these rules may engender.

Conclusion

In summary, the financial references in the document serve to delineate the characteristics that define small entities and provide context for assessing the potential impact of regulatory changes. However, more insight and specificity on financial implications would enhance understanding, particularly concerning how changes directly affect local businesses and small organizations in monetary terms. This aligns with the broader issue of needing a fuller exploration of both the potential costs and benefits of the rule changes.