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Size Standards of the Small Business Administration

For FCC purposes, the following are the nine primary telecommunications small business size standards. The U.S. Small Business Administration (SBA) established the size standards. See generally 13 C.F.R. § 121.201 (list of size standards). The paragraphs also contain data on the prevalence of small businesses.

SBA Size Standards

For FCC purposes, the following are the nine primary telecommunications small business size standards. The U.S. Small Business Administration (SBA) established the size standards. See generally 13 C.F.R. § 121.201 (list of size standards). The paragraphs also contain data on the prevalence of small businesses.

The categories (or "codes") for the size standards are from the North American Industry Classification System (NAICS), and are rather broad in scope. For more information about NAICS categories, please visit http://www.census.gov/epcd/www/naics.html. The U.S. Office of Management and Budget oversees the NAICS.

The FCC, in coordination with SBA, also creates "special," narrower small business size standards when appropriate.

515112—Radio Stations

The SBA has developed a small business size standard for Radio Stations, which consists of all such firms having $6 million or less in annual receipts.FN1 Business concerns included in this industry are those "primarily engaged in broadcasting aural programs by radio to the public."FN2 According to Commission staff review of BIA Publications, Inc., Master Access Radio Analyzer Database, as of May 16, 2003, about 10,427 of the 10,945 commercial radio stations in the United States had revenue of $6 million or less. We note, however, that many radio stations are affiliated with much larger corporations with much higher revenue, and, that in assessing whether a business concern qualifies as small under the above definition, such business (control) affiliationsFN3 are included.FN4 Our estimate, therefore, likely overstates the number of small businesses that might be affected by our action.

FN1: 13 C.F.R. § 121.201, NAICS code 515112 (changed from 513112 in October 2002).

FN2: Id.

FN3: "Concerns are affiliates of each other when one concern controls or has the power to control the other, or a third party or parties controls or has the power to control both." 13 C.F.R. § 121.103(a)(1).

FN4: "SBA counts the receipts or employees of the concern whose size is at issue and those of all its domestic and foreign affiliates, regardless of whether the affiliates are organized for profit, in determining the concern's size." 13 C.F.R. § 121.103(a)(4).

515120—Television Broadcasting

The SBA has developed a small business sized standard for television broadcasting, which consists of all such firms having $12 million or less in annual receipts.FN1 Business concerns included in this industry are those "primarily engaged in broadcasting images together with sound."FN2 According to Commission staff review of BIA Publications, Inc. Master Access Television Analyzer Database as of May 16, 2003, about 814 of the 1,220 commercial television stations in the United States had revenues of $12 million or less. We note, however, that, in assessing whether a business concern qualifies as small under the above definition, business (control) affiliationsFN3 must be included.FN4 Our estimate, therefore, likely overstates the number of small entities that might be affected by our action, because the revenue figure on which it is based does not include or aggregate revenues from affiliated companies. There are also 2,127 low power television stations (LPTV).FN5 Given the nature of this service, we will presume that all LPTV licensees qualify as small entities under the SBA size standard.

FN1: 13 C.F.R. § 121.201, NAICS code 515120 (changed from 513120 in October 2002).

FN2: OMB, North American Industry Classification System: United States, 1997, at 509 (1997). This category description continues, "These establishments operate television broadcasting studios and facilities for the programming and transmission of programs to the public. These establishments also produce or transmit visual programming to affiliated broadcast television stations, which in turn broadcast the programs to the public on a predetermined schedule. Programming may originate in their own studios, from an affiliated network, or from external sources." Separate census categories pertain to businesses primarily engaged in producing programming. See id. at 502-05, NAICS code 512120, Motion Picture and Video Production; code 512120, Motion Picture and Video Distribution; code 512191, Teleproduction and Other Post-Production Services; and code 512199, Other Motion Picture and Video Industries.

FN3: "Concerns are affiliates of each other when one concern controls or has the power to control the other or a third party or parties controls or has to power to control both." 13 C.F.R. § 121.103(a)(1).

FN4: "SBA counts the receipts or employees of the concern whose size is at issue and those of all its domestic concern's size." 13 C.F.R. § 121.103(a)(4).

FN5: FCC News Release, "Broadcast Station Totals as of September 30, 2002" (Nov. 6, 2002).

517110—Wired Telecommunications Carriers

The SBA has developed a small business size standard for Wired Telecommunications Carriers, which consists of all such firms having 1,500 or fewer employees.FN1 According to Census Bureau data for 1997, there were 2,225 firms in this category, total, that operated for the entire year.FN2 Of this total, 2,201 firms had employment of 999 or fewer employees, and an additional 24 firms had employment of 1,000 employees or more.FN3 Thus, under this size standard, the majority of firms can be considered small.

FN1: 13 C.F.R. § 121.201, NAICS code 517110 (changed from 513310 in October 2002).

FN2: U.S. Census Bureau, 1997 Economic Census, Subject Series: Information, "Establishment and Firm Size (Including Legal Form of Organization)," Table 5, NAICS code 513310 (issued Oct. 2000).

FN3: Id. The census data do 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 "Firms with 1,000 employees or more."

517211—Paging

The SBA has developed small business size standard for Paging, which consists of all such firms having 1,500 or fewer employees.FN1 According to Census Bureau data for 1997, in this category there was a total of 1,320 firms that operated for the entire year.FN2 Of this total, 1,303 firms had employment of 999 or fewer employees, and an additional seventeen firms had employment of 1,000 employees or more.FN3 Thus, under this size standard, the majority of firms can be considered small.

FN1: 13 C.F.R. § 121.201, NAICS code 517211 (changed from 513321 in October 2002).

FN2: U.S. Census Bureau, 1997 Economic Census, Subject Series: Information, "Establishment and Firm Size (Including Legal Form of Organization)," Table 5, NAICS code 513321 (issued October 2000).

FN3: Id. The census data do 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 "Firms with 1,000 employees or more."

517212—Cellular and Other Wireless Telecommunications

The SBA has developed a small business size standard for Cellular and Other Wireless Telecommunication, which consists of all such firms having 1,500 or fewer employees.FN1 According to Census Bureau data for 1997, in this category there was a total of 977 firms that operated for the entire year.FN2 Of this total, 965 firms had employment of 999 or fewer employees, and an additional twelve firms had employment of 1,000 employees or more.FN3 Thus, under this size standard, the majority of firms can be considered small.

FN1: 13 C.F.R. § 121.201, NAICS code 517212 (changed from 513322 in October 2002).

FN2: U.S. Census Bureau, 1997 Economic Census, Subject Series: Information, "Establishment and Firm Size (Including Legal Form of Organization)," Table 5, NAICS code 513322 (issued October 2000).

FN3: Id. The census data do not provide a more precise estimate of the number of firms that have 1,500 or fewer employees; the largest category provided is "Firms with 1,000 employees or more."

517410—Satellite Telecommunications

The SBA has developed a small business size standard for Satellite Telecommunications, which consists of all such firms having $12.5 million or less in annual receipts.FN1 According to Census Bureau data for 1997, in this category there was a total of 324 firms that operated for the entire year.FN2 Of this total, 273 firms had annual receipts of under $10 million, and an additional twenty-four firms had receipts of $10 million to $24,999,999.FN3 Thus, under this size standard, the majority of firms can be considered small.

FN1: 13 C.F.R. § 121.201, NAICS code 517410 (changed from 513340 in October 2002).

FN2: U.S. Census Bureau, 1997 Economic Census, Subject Series: Information, "Establishment and Firm Size (Including Legal Form of Organization)," Table 4, NAICS code 513340 (issued October 2000).

FN3: Id.

517310—Telecommunications Resellers

The SBA has developed a small business size standard for Telecommunications Resellers, which consists of all such companies having 1,500 or fewer employees.FN1 According to Census Bureau data for 1997, in this category there was a total of 1,071 firms that operated for the entire year.FN2 Of this total, 1,069 firms had employment of 999 or fewer employees, and an additional two had employment of 1,000 employees or more.FN3 Thus, under this size standard, the majority of firms can be considered small.

FN1: 13 C.F.R. § 121.201, NAICS code 517310 (changed from 513330 in October 2002).

FN2: U.S. Census Bureau, 1997 Economic Census, Subject Series: Information, "Establishment and Firm Size (Including Legal form of Organization)," Table 4, NAICS code 513330 (issued October 2000).

FN3: Id. The census data do 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 "Firms with 1,000 employees or more."

517510—Cable and Other Program Distribution

The SBA has developed a small business size standard for Cable and Other Program Distribution, which consists of all such firms having $12.5 million or less in annual receipts.FN1 According to Census Bureau data for 1997, in this category there was a total of 1,311 firms that operated for the entire year.FN2 Of this total, 1,180 firms had annual receipts of under $10 million, and an additional fifty-two firms had receipts of $10 million to $24,999,999.FN3 Thus, under this size standard, the majority of firms can be considered small.

FN1: 13 C.F.R. § 121.201, NAICS code 517510 (changed from 513220 in October 2002).

FN2: U.S. Census Bureau, 1997 Economic Census, Subject Series: Information, "Establishment and Firm Size (Including Legal Form of Organization)," Table 4, NAICS code 513220 (issued October 2000).

FN3: Id.

517910—Other Telecommunications

The SBA has developed a small business size standard for Other Telecommunications, which consists of all such firms having $12.5 million or less in annual receipts.FN1 According to Census Bureau data for 1997, in this category there was a total of 439 firms that operated for the entire year.FN2 Of this total, 424 firms had receipts of $10 million or less, and an additional six firms had receipts of $10 million to $24,999,999.FN3 Thus, under this size standard, the majority of firms can be considered small.

FN1: 13 C.F.R. § 121.201, NAICS code 517910 (changed from 513390 in October 2002).

FN2: U.S. Census Bureau, 1997 Economic Census, Subject Series: Information, "Establishment and Firm Size (Including Legal form of Organization)," Table 4, NAICS code 513390 (issued October 2000).

FN3: Id.

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