William F. Caton, Acting Secretary
Federal Communications Commission
Washington, DC 20554
RE: Notice of Ex Parte Presentation in a Non-Restricted Proceeding
In re Federal-State Joint Board on Universal Service Recommended Decision
CC Docket No. 96-45
Dear Mr. Caton:
Pursuant to Section 1.1206 of the Commission's Rules, the Office of Advocacy, U.S. Small Business Administration (SBA) submits an original and one copy of this ex parte notification. To the extent that a waiver is necessary for the one-day filing requirement, we request the Commission's approval of this late filing.
S. Jenell Trigg, Assistant Advocate for Telecommunications, spoke to Tom Boasberg, Legal Advisor, Office of the Chairman, Tuesday, April 1, 1997, via telephone regarding the SBA's concerns about the significant economic impact of the Recommended Decision on small businesses with multiple connections in rural and high cost areas. These remarks were regarding issues previously addressed in the SBA's official comments in the record. Ms. Trigg also met with Catherine J.K. Sandoval, Director, Office of Communications Business Opportunities, on Tuesday, April 8, and spoke via telephone to Dan Gonzalez, Legal Advisor, Office of Commissioner Rachelle B. Chong on Wednesday, April 9, regarding the Office of Advocacy's ex parte filing dated April 4, 1997.
Specifically, the SBA proposal sets forth an appropriate definition of small business for the Commission to use exclusively in this proceeding if the Commission deems it necessary to impose limitations on the level of universal service support in rural and high cost areas. The Office of Advocacy recommends that small businesses be defined by annual gross receipts as opposed to the number of lines. The national size standard for small businesses proposed by the Office of Advocacy is $5.0 million or less in annual gross receipts. The SBA also recommends that the Commission provide unrestricted support to small businesses meeting this definition. Furthermore, since a majority of businesses in the country have $10.0 million or less in gross receipts, the SBA also proposes that businesses exceeding $5.0 million receive support for up to five lines. Five lines provides minimal support for essential business tools: voice communication, computer modem and fax, credit card and check approval verification.
The Recommended Decision's restriction on residential lines, as well as institutional users, also has a significant economic impact on small businesses. The SBA proposes that residential consumers receive support for at least two lines to include support for a computer modem, and for institutional users (e.g., police and fire departments, schools districts, churches, health departments) to also have support for whatever number of lines that they deem necessary.
The aggregate economic impact on small businesses, residents, and institutional users in rural and high cost areas will be tremendous if there is a reduction in universal service support and/or an increase in the cost of telephone service due to other regulatory factors. This cumulative effect disproportionately raises the cost of living in rural America.
The SBA recognizes that there is a cost associated with its ex parte proposal, however we assert that the continuation of support to rural and high cost areas is in the public interest. Consistent with Congressional intent that the burden of this cost is best shared nationally, the cost of telecommunications and information services should not be disproportionately borne by small business consumers located in rural and high cost areas.
Very truly yours,
S. Jenell Trigg
Assistant Advocate for Telecommunications
Office of Advocacy
U..S. Small Business Administration
409 Third Street, S.W. Suite 7800
Washington, D.C. 20416
(202) 205-6950
cc:Chairman Reed E. Hundt
Commissioner Susan Ness
Commissioner James H. Quello
Commissioner Rachelle B. Chong
Mr. Thomas Boasberg
Mr. James Casserly
Mr. James Colthorp
Mr. Daniel Gonzalez
Ms. Regina M. Keeney
Mr. A. Richard Metzger Jr.
Ms. Kathleen B. Levitz
Mr. John Nakahata
Ms. Catherine J.K.Sandoval
Mr. Jere Glover