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                         NOTICE
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APPENDIX C
                                
            Initial Regulatory Flexibility Analysis

     As required by the Regulatory Flexibility Act (RFA), the Commission has prepared this present
Initial Regulatory Flexibility Analysis (IRFA) of the possible significant economic impact on small entities
by the policies and rules proposed in this Notice of Proposed Rulemaking (Notice).  Written public
comments are requested on the IRFA.  Comments must be identified as responses to the IRFA and must be
filed by the deadlines for comments on the Notice provided above in paragraphs 34 - 38.  The Commission
will send a copy of the Notice, including this IRFA, to the Chief Counsel for Advocacy of the Small
Business Administration.  5 U.S.C.  603(a).  In addition, the Notice and IRFA (or summaries thereof) will
be published in the Federal Register.

I.   Need for, and Objectives of, the Proposed Rules

     The purpose of the Notice is to comply with the Orbit Act requirement that the Commission initiate
a notice and comment proceeding to determine whether sufficient opportunity exists for users and service
providers to access INTELSAT space segment capacity directly to meet their service or capacity
requirements.  If commenters believe that the proposals discussed in the Notice require additional RFA
analysis, they should include a discussion of this in their comments.

II.  Legal Basis

     The authority for the Notice is pursuant to the authority contained in sections 1, 4(i), 4(j), 201,
202, 214 and Title III and 403 of the Communications Act of 1934, as amended, 47 U.S.C.  151, 154(i)
and (j), 201, 202, 214, 301 et seq. and 403, and sections 102(c), 201(c)(2), and c(11), of the
Communications Satellite Act of 1962, as amended, 47 U.S.C.  721(c), 741(c)(12) and (11), section 641
of the Open-Market Reorganization for the Betterment of International Telecommunications Act, Pub. L.
106-180, 114 Stat. 48 (2000)  641, the applicable procedures set forth in sections 1.415 and 1.419 of the
Commission's rules, 47 C.F.R.  1.415 and 1.419, and 5 USC 553 of the Administrative Procedures Act.

     III. Description and Estimate of the Number of Small Entities to Which Proposed Rule Will
     Apply  

     The RFA directs agencies to provide a description of, and, where feasible, an estimate of the
number of small entities that may be affected by the proposed rules, if adopted.  5 U.S.C.  603(b)(3).  The
RFA defines the term "small entity" as having the same meaning as the terms "small business," "small
organization" and "small business concern" under Section 3 of the Small Business Act.  A "small business
concern" is one which is (1) independently owned and operated; (2) not dominant in its field of operation;
(3) satisfies any additional criteria established by the Small Business Administration ("SBA").  15 U.S.C.
 632. 

     The Commission has not developed a definition of small entities applicable to satellite service
licensees.  Therefore, the applicable definition of small entity is the definition under the Small Business
Administration ("SBA") rules applicable to Communications Services "Not Elsewhere Classified."  This
definition provides that a small entity is one with $11 million or less in annual receipts.  13 C.F.R. 
121.201, Standard Industrial Classification (SIC) Code 4899.  According to the SBA, the Census Bureau
estimates that there are approximately 631 entities providing communications services, not elsewhere
classified.  Of those, between 401-631 reported annual receipts of less than $9.999 million or less and
would qualify as small entities subject to the proposed rules.  More precise data is not available.

     The proposed Notice requires Comsat Corporation ("Comsat") to provide information
concerning existing and future capacity in the INTELSAT system necessary for us to make the
determination required by the ORBIT Act.  The Commission also may seek information directly
from INTELSAT if necessary and appropriate.  Comsat's 1999 revenues were in excess of $11
million.  Thus, Comsat does not qualify as a small entity under the SBA's definition.  U.S. carriers
and users, including any small entities, that may be affected indirectly, would likely benefit from
the proposed action.

     IV.  Description of Projected Reporting, Recordkeeping or Other Compliance Requirements

     The proposals in the Notice are not expected to result in any additional reporting, recordkeeping
and other compliance.

     V.   Steps Taken to Minimize Significant Economic Burden on Small Entities, and Significant
     Alternatives Considered 
     
     The RFA requires an agency to describe any significant alternatives that it has considered in
reaching its proposed approach, which may include the following four alternatives:  (1) The establishment
of differing compliance or reporting requirements or timetables that take into account the resources
available to small entities; (2) the clarification, consolidation, or simplification of compliance or reporting
requirements under the rule for small entities; (3) the use of performance, rather than design, standards; and
(4) an exemption from coverage of the rule, or any part thereof, for small entities.  

     Without prejudgment as to whether it will determine that "sufficient opportunity" exists, the
Commission is seeking comment on alternatives for "appropriate action" should it determine that sufficient
opportunity does not exist for users and service providers to access INTELSAT directly.  The Commission
tentatively concludes that the first option for resolving this problem should be commercial solutions
between Comsat and users and service providers.  It also seeks comment on possible regulatory action
should commercial negotiations fail to yield a solution.  The intent of any regulatory action would be to
permit users and service providers, including small entities, to benefit from the availability of direct access
to INTELSAT space segment capacity to meet service or capacity requirements.  We do not expect the
proposals to cause any economic burden to small entities, and seek comment on any issues pertinent to this. 

     VI.  Federal Rules That Overlap, Duplicate, or Conflict with These Proposed Rules
     
     None.  

List of Subjects in 47 CFR Part 25
Satellites
Federal Communications Commission