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Federal Register / Vol. 86, No. 52 / Friday, March 19, 2021 / Rules and Regulations
estimated 1,006 have 1,500 or fewer employees.281 Thus, using the SBAs size standard the majority of incumbent LECs can be considered small entities.
14. Competitive Local Exchange Carriers Competitive LECs, Competitive Access Providers CAPs, Shared-Tenant Service Providers, and Other Local Service Providers. Neither the Commission nor the SBA has developed a small business size standard specifically for these service providers. The appropriate NAICS Code category is Wired Telecommunications Carriers and under that size standard, such a business is small if it has 1,500
or fewer employees.282 U.S. Census Bureau data for 2012 indicate that 3,117
firms operated during that year.283 Of that number, 3,083 operated with fewer than 1,000 employees.284 Based on these data, the Commission concludes that the majority of Competitive LECS, CAPs, Shared-Tenant Service Providers, and Other Local Service Providers, are small entities. According to Commission data, 1,442 carriers reported that they were engaged in the provision of either competitive local exchange services or competitive access provider services.285
Of these 1,442 carriers, an estimated 1,256 have 1,500 or fewer employees.286
In addition, 17 carriers have reported that they are Shared-Tenant Service Providers, and all 17 are estimated to have 1,500 or fewer employees.287 Also, 72 carriers have reported that they are Other Local Service Providers.288 Of this total, 70 have 1,500 or fewer employees.289 Consequently, based on internally researched FCC data, the Commission estimates that most providers of competitive local exchange service, competitive access providers, Shared-Tenant Service Providers, and 281 Id.
282 See
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13 CFR 121.201. The Wired Telecommunications Carrier category formerly used the NAICS code of 517110. As of 2017 the U.S.
Census Bureau definition shows the NAICs code as 517311 for Wired Telecommunications Carriers.
See, https www.census.gov/cgi-bin/sssd/naics/
naicsrch?code=517311&search=2017.
283 See U.S. Census Bureau, 2012 Economic Census of the United States, Table No.
EC1251SSSZ5, Information: Subject SeriesEstab & Firm Size: Employment Size of Firms: 2012
517110 Wired Telecommunications Carriers.
https factfinder.census.gov/bkmk/table/1.0/en/
ECN/2012_US/51SSSZ5//naics517110.s.
284 Id.
285 See Federal Communications Commission, Wireline Competition Bureau, Industry Analysis and Technology Division, Trends in Telephone Service at Table 5.3 Sept. 2010 Trends in Telephone Service, https apps.fcc.gov/edocs_
public/attachmatch/DOC-301823A1.pdf.
286 Id.
287 Id.
288 Id.
289 Id.

Other Local Service Providers are small entities.
15. Interexchange Carriers IXCs.
Neither the Commission nor the SBA
has developed a small business size standard specifically for Interexchange Carriers. The closest applicable NAICS
Code category is Wired Telecommunications Carriers.290 The applicable size standard under SBA
rules is that such a business is small if it has 1,500 or fewer employees.291 U.S.
Census Bureau data for 2012 indicate that 3,117 firms operated for the entire year.292 Of that number, 3,083 operated with fewer than 1,000 employees.293
According to internally developed Commission data, 359 companies reported that their primary telecommunications service activity was the provision of interexchange services.294 Of this total, an estimated 317 have 1,500 or fewer employees.295
Consequently, the Commission estimates that the majority of interexchange service providers are small entities.
16. Prepaid Calling Card Providers.
Neither the Commission nor the SBA
has developed a small business size standard specifically for prepaid calling card providers. The appropriate NAICS
code category for prepaid calling card providers is Telecommunications Resellers. This industry comprises establishments engaged in purchasing access and network capacity from owners and operators of telecommunications networks and reselling wired and wireless telecommunications services except satellite to businesses and households.
Establishments in this industry resell telecommunications; they do not operate transmission facilities and infrastructure. Mobile virtual network operators MVNOs are included in this
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290 See 13 CFR 121.201. The Wired Telecommunications Carrier category formerly used the NAICS code of 517110. As of 2017 the U.S.
Census Bureau definition shows the NAICs code as 517311 for Wired Telecommunications Carriers. See U.S. Census Bureau, 2017 NAICS Definition, https www.census.gov/cgi-bin/sssd/naics/
naicsrch?code=517311&search=2017.
291 Id.
292 See U.S. Census Bureau, 2012 Economic Census of the United States, Table No.
EC1251SSSZ5, Information: Subject SeriesEstab & Firm Size: Employment Size of Firms: 2012
517110 Wired Telecommunications Carriers.
https factfinder.census.gov/bkmk/table/1.0/en/
ECN/2012_US/51SSSZ5//naics517110.
293 Id.
294 See Trends in Telephone Service, Federal Communications Commission, Wireline Competition Bureau, Industry Analysis and Technology Division at Table 5.3 Sept. 2010
Trends in Telephone Service. https apps.fcc.gov/
edocs_public/attachmatch/DOC-301823A1.pdf.
295 Id.

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industry.296 The SBA has developed a small business size standard for the category of Telecommunications Resellers.297 Under that size standard, such a business is small if it has 1,500
or fewer employees.298 U.S. Census Bureau data for 2012 show that 1,341
firms provided resale services during that year.299 Of that number, 1,341
operated with fewer than 1,000
employees.300 Thus, under this category and the associated small business size standard, the majority of these resellers can be considered small entities.
According to Commission data, 193
carriers have reported that they are engaged in the provision of prepaid calling cards.301 All 193 carriers have 1,500 or fewer employees.302
Consequently, the Commission estimates that the majority of prepaid calling card providers are small.
17. Local Resellers. The SBA has not developed a small business size standard specifically for Local Resellers.
The SBA category of Telecommunications Resellers is the closest NAICs code category for local resellers. The Telecommunications Resellers industry comprises establishments engaged in purchasing access and network capacity from owners and operators of telecommunications networks and reselling wired and wireless telecommunications services except satellite to businesses and households.
Establishments in this industry resell telecommunications; they do not operate transmission facilities and infrastructure. Mobile virtual network operators MVNOs are included in this industry.303 Under the SBAs size standard, such a business is small if it has 1,500 or fewer employees.304 U.S.
Census Bureau data from 2012 show 296 U.S. Census Bureau, 2017 NAICS Definition, NAICS Code 517911 Telecommunications Resellers, https www.census.gov/cgi-bin/sssd/
naics/naicsrch?code=517911&search=
2017%20NAICS%20Search.
297 13 CFR 121.201 NAICS code 517911.
298 Id.
299 See U.S. Census Bureau, 2012 Economic Census of the United States, Table No.
EC1251SSSZ5, Information: Subject SeriesEstab & Firm Size: Employment Size of Firms: 2012
NAICS Code 517911, https factfinder.census.gov/
bkmk/table/1.0/en/ECN/2012_US/51SSSZ5//
naics517911.
300 Id. Available census data does not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is for firms with 1000
employees or more.
301 See Trends in Telephone Service, at Table 5.3.
302 Id.
303 U.S. Census Bureau, 2017 NAICS Definition, 517911 Telecommunications Resellers, https
www.census.gov/cgi-bin/sssd/naics/naicsrch?
code=517911&search=2017%20NAICS%20Search.
304 13 CFR 121.201, NAICS code 517911.

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