Federal Communications Commission fcc 13-50 Before the Federal Communications Commission

Other Issues

139. 
     Intelsat and SIA ask that we relieve non-common carrier space station applicants from the requirement to respond to the section 310(b)-related questions in FCC Form 312 because section 310(b) does not apply to non-common carrier radio station licenses.³⁰⁵ The rules applicable to non-common carrier space station applicants are outside the scope of this proceeding. Thus, we do not address Intelsat’s and SIA’s requests to amend FCC Form 312 in the context of this Second Report and Order.
     

5. CONCLUSION

140. 
     We adopt rules that apply to foreign ownership of common carrier radio station licensees and the controlling U.S. parents of common carrier radio station licensees. We also adopt rules that apply to foreign ownership of the controlling U.S. parents of aeronautical radio station licensees. We find that today’s actions will continue to protect important interests related to national security, law enforcement, foreign policy and trade policy, while reducing regulatory burdens and costs, providing greater transparency and predictability, and facilitating investment U.S. telecommunications carriers and our nation’s telecommunications infrastructure.
     

6. PROCEDURAL ISSUES

   1. Final Regulatory Flexibility Certification

141. 
     The Regulatory Flexibility Act of 1980, as amended (RFA),¹ requires that a final regulatory flexibility analysis be prepared for notice-and-comment rule making proceedings, unless the agency certifies that “the rule will not, if promulgated, have a significant economic impact on a substantial number of small entities.”² The RFA generally defines the term “small entity” as having the same meaning as the terms “small business,” “small organization,” and “small governmental jurisdiction.”³ In addition, the term “small business” has the same meaning as the term “small business concern” under the Small Business Act.⁴ A “small business concern” is one which: (1) is independently owned and operated; (2) is not dominant in its field of operation; and (3) satisfies any additional criteria established by the Small Business Administration (SBA).⁵
     
142. 
     In this Second Report and Order, the Commission adopts rules that will apply to foreign ownership of common carrier and certain aeronautical radio station applicants, licensees and spectrum lessees (hereinafter referred to collectively as “licensees”). These rules will simplify the policies and procedures the Commission currently applies in reviewing foreign ownership of these licensees’ controlling U.S. parent companies under the discretionary provisions in section 310(b)(4) of the Act, 47 U.S.C. §§ 310(b)(4), while continuing to ensure that we have the information we need to carry out our statutory duties. The new rules will simplify to the same extent the policies and procedures that currently apply to Commission review of foreign ownership in common carrier licensees pursuant to the section 310(b)(3) forbearance policy that the Commission adopted in the First Report and Order in this proceeding.⁶ The rules are designed to reduce to the extent possible the regulatory costs and burdens that our current foreign ownership policies and procedures impose on common carrier and aeronautical licensees, including those that are small entities; provide greater transparency and more predictability with respect to the Commission’s filing requirements and review process; and facilitate investment in U.S carriers from new sources of capital, while continuing to protect important interests related to national security, law enforcement, foreign policy, and trade policy.
     
143. 
     We estimate that the rule changes we are adopting will reduce the number of section 310(b) petitions for declaratory ruling filed with the Commission annually in the range of 40 to 70 percent as compared to the current regulatory framework.⁷ We also anticipate a significant reduction in the time and expense associated with filing petitions. For example, licensees filing petitions for declaratory ruling under our section 310(b)(3) forbearance approach or under section 310(b)(4) will no longer be required to demonstrate the percentage of their equity and voting interests that are, or may be, held by investors from non-WTO Member countries.⁸ As another example, under the new rules licensees filing petitions will no longer be required to include requests for specific approval of named foreign investors unless a foreign investor would hold, in the licensee (in the case of a petition filed under section 310(b)(3) forbearance) or in the U.S. parent (in the case of a petition filed under section 310(b)(4)), an interest exceeding five percent, subject to an exception for certain ten percent interests.⁹
     
144. 
     Although the commenters in this proceeding did not quantify the extent to which current costs and burdens would be reduced by the proposals and other options raised in the NPRM, the qualitative descriptions they provided in the record, and the sheer volume of information that petitioners have had to produce in particular proceedings (and which the Commission has had to analyze in its decisions), leave no doubt that the current requirements impose significant costs and burdens that the new rules will reduce.
     
145. 
     In summary, we believe that the new rules will reduce costs and burdens currently imposed on licensees, including those licensees that are small entities, and accelerate the foreign ownership review process, while continuing to ensure that we have the information we need to carry out our statutory duties. Therefore, we certify that the rules adopted in this Second Report and Order will not have a significant economic impact on a substantial number of small entities. The Commission will send a copy of this Order, including a copy of this Final Regulatory Flexibility Certification, to the Chief Counsel for Advocacy of the SBA.¹⁰ This final certification will also be published in the Federal Register.¹¹
     

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