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November 19,2015
The Honorable Thomas Wheeler
Chairman
Federal Communications Commission
445 12thStreet, SW
Washington, DC 20554
Dear Chairman Wheeler:
During the Open Internet proceeding, the FCC heard from small businesses regarding the
impact of the FCC's enhanced transparency requirements.' In its Order, the Commission rightly
recognized that small businesses are uniquely situated and granted small businesses a temporary
exemption from the requirements.i We applaud the Commission's action in granting this
temporary exemption and urge you to make it permanent.
Small businesses serve as the backbone of the United States economy. In fact, small
businesses represent 99.7 percent of all employers in the United States.' create 63 percent of net
new private-sector jobs, 4 and create more than half of private, non-farm gross domestic product. 5
These companies are the true "job creators," consistently responsible for 60% to 80% of net new
jobs in each of the past 10 years."
As the Chief Counsel for Advocacy at the Small Business Administration (SBA) has
pointed out, "[s]mall business participation in the service of broadband is vitally important for
achieving the goal of greater consumer access and choice.,,7 As the Commission learned from
the record leading up to its issuance of the Open Internet Order, the enhanced transparency
requirements jeopardize the ability of small Internet Service Providers (ISPs) to offer broadband
services to our constituents, and to deploy faster and more sophisticated broadband networks."
Smaller ISPs, particularly in rural areas, provide service to fellow small businesses. It is
1 Protecting and Promoting the Open Internet, Report and Order on Remand, Declaratory Ruling, and Order, 30
FCC Red 5601, ~ 172 (2015) (Open Internet Order) ("[t]he record reflects the concerns of some commenters that
enhanced transparency requirements will be particularly burdensome for small providers.").
2Id.~173.
3 UNITED STATES SMALL BUSINESS ADMINISTRATION, Frequently Asked Questions, available at
https://www.sba.gov/sites/defaultlfiles/FAO March 2014 O.pdf (last visited Nov. 2, 2015).
4Id.
s http://www.nfih.com/advocacy/economy/ (last visited Nov 2,2015).
6/d.
7 Letter from Winslow Sargeant, Chief Counsel for Advocacy, and Jamie Saloom, Assistant Chief Counsel for
Telecommunications, U.S. Small Business Administration to Marlene Dortch, Secretary, FCC, GN Docket No. 14-
28 at 3 (filed Sept. 25, 2014).
8 2015 Open Internet Order at para. 172.
1193
Letter to the Honorable Thomas Wheeler
Page 2
critically important to these rural communities that the ability of ISPs to offer state-of-the-art
broadband services not be diminished.
Given the stakes for America's small businesses, the FCC was right to exercise caution
and grant the temporary exemption. Now is the time to recognize the disproportionate impact
that the requirements would have on these ISPs and their customers and make the exemption
permanent. Additionally, the Commission should grant the exemption to all small businesses
that meet the definitions previously set by the SBA.
In the Open Internet Order, the FCC temporarily exempted small ISPs with 100,000 or
fewer subscribers from the enhanced transparency requirements; however, the Order indicated
that the Commission would continue to consider the appropriate threshold for the exemption.
The interim standard adopted in the Order deviates from the definitions set by the SBA for small
telecommunications carriers (1,500 employees) and other small business definitions adopted by
the FCC and approved by the SBA. We urge the Commission to extend this to ISPs that meet the
SBA's definition of small telecommunications carrier, or the FCC's SBA-approved definition of
a small wireless carrier (500,000 or fewer subscribers).
Small ISPs do not have the resources necessary for compliance with the enhanced
transparency requirements, and the FCC should provide a permanent exemption from such
requirements for any ISP that comports with the SBA definition of small telecommunications
carrier or utilize the definition of a small carrier adopted by the FCC and approved by the SBA.
Thank you for your consideration of our views on this important issue. We look forward
to your response.
Sincerely,
~S -~----------
Chairman
Committee on Small Business
Chairman
Committee on Energy and Commerce
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GregWald:) •
Chairman
Subcommittee on Communications
and Technology
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Vice Chairman
Subcommittee on Communications
and Technology
Letter to the Honorable Thomas Wheeler
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