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Federal Register / Vol. 86, No. 111 / Friday, June 11, 2021 / Proposed Rules
States, which translates to 30.7 million businesses.
6. Next, the type of small entity described as a small organization is generally any not-for-profit enterprise which is independently owned and operated and is not dominant in its field. The Internal Revenue Service IRS uses a revenue benchmark of $50,000 or less to delineate its annual electronic filing requirements for small exempt organizations. Nationwide, for tax year 2018, there were approximately 571,709 small exempt organizations in the U.S. reporting revenues of $50,000
or less according to the registration and tax data for exempt organizations available from the IRS.
7. Finally, the small entity described as a small governmental jurisdiction is defined generally as governments of cities, counties, towns, townships, villages, school districts, or special districts, with a population of less than fifty thousand. U.S. Census Bureau data from the 2017 Census of Governments indicate that there were 90,075 local governmental jurisdictions consisting of general purpose governments and special purpose governments in the United States. Of this number there were 36,931 general purpose governments county, municipal and town or township with populations of less than 50,000 and 12,040 special purpose governments independent school districts with enrollment populations of less than 50,000. Accordingly, based on the 2017
U.S. Census of Governments data, we estimate that at least 48,971 entities fall into the category of small governmental jurisdictions.
8. Wired Telecommunications Carriers. The U.S. Census Bureau defines this industry as establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired communications networks.
Transmission facilities may be based on a single technology or a combination of technologies. Establishments in this industry use the wired telecommunications network facilities that they operate to provide a variety of services, such as wired telephony services, including VoIP services, wired cable audio and video programming distribution, and wired broadband internet services. By exception, establishments providing satellite television distribution services using facilities and infrastructure that they operate are included in this industry.
The SBA has developed a small business size standard for Wired
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Telecommunications Carriers, which consists of all such companies having 1,500 or fewer employees. U.S. Census Bureau data for 2012 show that there were 3,117 firms that operated that year.
Of this total, 3,083 operated with fewer than 1,000 employees. Thus, under this size standard, the majority of firms in this industry can be considered small.
9. Local Exchange Carriers LECs.
Neither the Commission nor the SBA
has developed a size standard for small businesses specifically applicable to local exchange services. The closest applicable NAICS Code category is Wired Telecommunications Carriers.
Under the applicable SBA size standard, such a business is small if it has 1,500
or fewer employees. U.S. Census Bureau data for 2012 show that there were 3,117
firms that operated for the entire year.
Of that total, 3,083 operated with fewer than 1,000 employees. Thus under this category and the associated size standard, the Commission estimates that the majority of local exchange carriers are small entities.
10. Incumbent LECs. Neither the Commission nor the SBA has developed a small business size standard specifically for incumbent local exchange services. The closest applicable NAICS Code category is Wired Telecommunications Carriers.
Under the applicable SBA size standard, such a business is small if it has 1,500
or fewer employees. U.S. Census Bureau data for 2012 indicate that 3,117 firms operated the entire year. Of this total, 3,083 operated with fewer than 1,000
employees. Consequently, the Commission estimates that most providers of incumbent local exchange service are small businesses that may be affected by our actions. According to Commission data, one thousand three hundred and seven 1,307 Incumbent Local Exchange Carriers reported that they were incumbent local exchange service providers. Of this total, an estimated 1,006 have 1,500 or fewer employees. Thus, using the SBAs size standard the majority of incumbent LECs can be considered small entities.
11. 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. U.S. Census Bureau data for 2012 indicate that 3,117 firms operated during that year. Of that
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number, 3,083 operated with fewer than 1,000 employees. 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. Of these 1,442 carriers, an estimated 1,256
have 1,500 or fewer employees. 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. Also, 72
carriers have reported that they are Other Local Service Providers. Of this total, 70 have 1,500 or fewer employees.
Consequently, based on internally researched FCC data, the Commission estimates that most providers of competitive local exchange service, competitive access providers, SharedTenant Service Providers, and Other Local Service Providers are small entities.
12. We have included small incumbent LECs in this present RFA
analysis. As noted above, a small business under the RFA is one that, inter alia, meets the pertinent small business size standard e.g., a telephone communications business having 1,500
or fewer employees, and is not dominant in its field of operation. The SBAs Office of Advocacy contends that, for RFA purposes, small incumbent LECs are not dominant in their field of operation because any such dominance is not national in scope. We have therefore included small incumbent LECs in this RFA analysis, although we emphasize that this RFA action has no effect on Commission analyses and determinations in other, non-RFA
contexts.
13. 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. The applicable size standard under SBA
rules is that such a business is small if it has 1,500 or fewer employees. U.S.
Census Bureau data for 2012 indicate that 3,117 firms operated for the entire year. Of that number, 3,083 operated with fewer than 1,000 employees.
According to internally developed Commission data, 359 companies reported that their primary telecommunications service activity was the provision of interexchange services.
Of this total, an estimated 317 have 1,500 or fewer employees.

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