Mr. William F. Caton
Secretary
Federal Communications Commission
1919 M Street, NW Suite 222
Washington, DC 20554
RE: Nominations for the Federal-State Joint Board on Universal Service Rural Task Force, CC Dkt. No. 96-45
Dear Mr. Caton:
The Office of Advocacy of the United States Small Business Administration (SBA) hereby submits nominations for the Federal-State Joint Board on Universal Service Rural Task Force (RTF).(1) The Office of Advocacy was established by Congress in 1976 under Pub. L. No. 94-305 to represent the views of small business before federal agencies and Congress. Advocacy's statutory duties include, inter alia, serving as a focal point for concerns regarding the government's policies as they affect small business; measuring the direct costs and other effects of government regulation on small business; and developing proposals for changes in federal agencies' policies and communicating these proposals to the agencies. 15 U.S.C. §§ 634b, 634c(1)-(4).
The Office of Advocacy nominates Betty Jo Toccoli, President of the Small Business Coalition for Fair Utility Deregulation (Coalition) for Category 3 "Consumer Advocate" or Category 7 "Other Non-ILEC Participants."(2) Ms. Toccoli, a founding member of the Coalition, is an entrepreneur and a nationally renowned small business advocate who has served as the Chair of the Southern California delegation to the 1995 White House Conference on Small Business and is currently Regional Implementation Chair for Region IX, WHCSB. Ms. Toccoli is also the President of the California Small Business Association, which has 187,000 members located in urban, rural, and suburban areas. Moreover, Ms. Toccoli has been very active in the FCC's Universal Service proceeding and is well acquainted with the economic and policy concerns of a local exchange network, in addition to the impact of universal service reform on small business.
The Office of Advocacy also supports the Small Business Coalition for Fair Utility Deregulation's nominations of Andres (Andy) Lagueruela and Gwen Moore. Ms. Moore and Mr. Lagueruela have extensive experience in the telecommunications industry and are also very knowledgeable about the engineering, economic, and policy concerns of the local exchange network.
The importance and need for small business representation on the RTF is three-fold. First, small businesses are "consumers" of telecommunications and information services. Therefore, the statutory mandate that "[c]onsumers in all regions of the Nation, including . . . those in rural, insular, and high cost areas, should have access to telecommunications and information services . . . that are reasonably comparable to those services provided in urban areas and that are available at rates that are reasonably comparable to rates charged for similar services in urban areas" also applies to small businesses. 47 U.S.C. § 254(b)(3) emphasis added.
Universal service reform has a direct and an indirect impact on a small business in rural and high cost areas. The direct impact is in a small business' use of multiple telephone lines(3)and the increasing application of telecommunications and information services in the operation of small businesses. The indirect impact is caused by changes in the cost of residential service, which affects the overall rural economy because it is an influence on the available spendable income of a small business' customers.
Second, the majority of businesses in the country are small businesses with annual gross revenues under $5.0 million dollars, 94.9% of 4, 677,075 firms.(4) Significantly, these firms only garner 17.1% of total business receipts,(5) yet they pay a disproportionate share of the cost of the local loop. Although exact numbers on the number of small businesses located in rural, insular, high cost areas are not available, we are confident that mostly all the businesses in such areas are small, numbering in the tens of thousands, and will be economically impacted by the Joint-Board's recommendations.
Finally, any notice and comment rulemaking as a result of the Joint Board and FCC's implementation of Section 254 of the Telecommunications Act of 1996 is subject to the requirements of the Regulatory Flexibility Act, as amended by the Small Business Regulatory Enforcement Fairness Act of 1996. 15 U.S.C. § 601. The RFA requires that the FCC complete an analysis on the significant economic impact of its regulations on a substantial number of small entities. 5 U.S.C. § 601 et seq. Furthermore, the RFA requires that small businesses have an opportunity to participate in the rulemaking.
5 U.S.C. § 609. The FCC's compliance with these provisions of the RFA are also judicially reviewable. 5 U.S.C. § 611.
There is no better way to identify and take into consideration the economic impact of the Joint Board's recommendation on small businesses than by having small business representatives - both small business telecommunications providers and small businesses consumers - serving on the RTF. Inclusion of small business consumer representatives will help ensure that the Task Force is well-balanced in its representation of a "variety of economic, social, and geographic interests."(6)
The Office of Advocacy appreciates the Joint Board's consideration of the nominations of Ms. Toccoli, Ms. Moore, and Mr. Lagueruela. If there are additional questions or comments regarding our nominations, please do not hesitate to call S. Jenell Trigg at 202-205-6533.
Very truly yours,
Jere W. Glover
Chief Counsel for Advocacy
S. Jenell Trigg
Assistant Chief Counsel for
Telecommunications
cc: Attached Service List
Endnotes
1. FCC Public Notice, Federal State Joint Board on Universal Service Announces the Creation of a Rural Task Force: Solicits Nominations for Members on Rural Task Force, CC Dkt. No. 96-45, FCC 97J-1 ( rel. Sept. 18, 1997) [FCC Public Notice].
2. The Coalition is a new national, bi-partisan, non-profit organization formed to ensure fair treatment of small businesses in telecommunications, electric, and gas utility regulations. The Coalition networks with other organizations, individuals, and trade associations in the small business community to assemble and deliver information on how utility deregulation impacts on small business. In addition, the Coalition serves as an advocate in the legislative and regulatory arenas at both the state and federal government levels.
3. FCC Press Release, Commission Reforms Interstate Access Charge System, CC Dkt. No. 96-262, Rpt. No. 97-23 (small business chart citing results from PNR Associations study), see also Exparte Comments of the Office of Advocacy, SBA, Apr. 4, 1997 at 2-3 (citing CSBA Telephone Use Poll).
4. Exparte Comments of the Office of Advocacy, at 11 (citing U.S. Census Bureau Data).
5. Id.
6. FCC Public Notice, at 2.