Small Business Agency Asks FCC to Review Telecom Size Standards

WASHINGTON, March 11, 2010 –The Small Business Administration is requesting that the Federal Communications Commission look into redefining or revising size standards governing telecommunication services firms to better reflect current market conditions.

In a letter sent last week, the SBA’s Office of Advocacy asked the FCC to consider changes “needed mainly to reflect the financial and technological changes that have occurred in the market.”

The SBA points out to the FCC that there currently are three North American Industry Classification System codes defining telecommunications and related services, but additional classifications “may be needed to account for small broadband and telecommunications providers” as they are currently lumped in with one of the broader categories and not explicitly accounted for.

A NAICS code is the standard used by federal statistical agencies to classify businesses for collecting and analyzing data related to the U.S. business economy. Any firm wishing to do business with the federal government is required to know and use its NAICS code.

The current NAICS categories in the telecom field are:

1. Telecommunications, which includes firms like wireless carriers and satellite firms;
2. Data Processing, Hosting and Related Services
3. Other Information Services, which includes news syndicates, libraries, Internet portals and Web search portals