PAGENO="0001" SURVEY OF GOVERNMENT OPERATIONS PART 6-FEDERAL COMMUNICATIONS COMMISSION `1. DOC~. i HEARING BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS HOUSE OF 1 EPRESENTATIVES NINETIETH CONGRESS SECOND SESSION APRIL~ 10, 1968 Printec~ for the use of the Committee on Government Operations 96-501 5u 1/cl U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1/968 S~L~Lk~S r'~t~C ~1Jr-L~y OF AUG PAGENO="0002" OOMMITPEE ON GOVERNMENT OPERATIONS WILLIAM U. DAWSQN, Illi~iojs, Chairman CHET HOLIFIELD, California JACK BROOKS, Texas L. H. FOUNTAIN, North Carolina PORTER HARDY, JR., Virginia JOHN A. BLATNIK, Mina~sota ROBERT E. JONES. Alabama EDWARD A. GARMATZ, Maryland JOHN B. MOS~S, California DANTE B. FASCELL Florida HENRY S. RiUSS,~1~co~sIn. JOHN S. MO~AG?Qonne~tlcut TORBERT H. MACDONALD, Massachusetts J. EDWARD ROUST~! ~nd1ana WILLIAM S. ~MOORH]~AD? Pennsylvania CORNELIUS E. GALLAGHER, New Jersey WILLIAM J. RANDALL, Missouri BENJAMIN S. ROSENTHAL, New york JIM WRIGHT, Texas FERNAND J. ST GERMAIN, Rhode Island CHRisTINE RAT DAVIS, fitaff Director JAMES A. LANIGAN, 6~eneral Counsel MILEs Q. ROMNni~, A socktteGelreral Counsel J. P. CARLSON, Minority Conn~sel WILLIAM H. COPENHA~Ea, Minority Professional $taff I FLORENCE P. DW~ER, New Jersey OGDEN R. REID, New York FRANK HORTON, New York DONALD RUMSFELD, Illinois JOHN N. ERLENIIO~IN, Illinois JOHN W. WYDLER, N~w York CLARENGE J. BROWN, JR., Ohio JACK ~DWARDS, Alabama GUY VANDER JAGT, Michigan JQ~J~ T. MYERS~ In~iai~a FLET~I~E1iJTHOMPSON, Georgia WILLIAM 0. COWGER, Kentucky MARGARET ~. ~IECK~ER, R~as~achusetts GILBERT GliDE, Mar~hind PAUL N. MeCLOSKEY, JR., California GOVERNMENT ACTIvITIES SUBCOMMITTEE JACK BROOKS, Texas, Chairman WILLIAM S. MOORflEAD, Pennsylvania OGDEN R. REID, New York WILLIAM J. RANDALL; Missouri T~'LETER~URQMPSON, Georgia DANTE B. FASCELL~ Florida MAItGARET M. HECKLER, Massachusetts ~BAYNARn, ~ttzff AdminIstrator WILLIAM RI. JONES, Counstl IRMAJtEEL, Clerk L~NNE ~IGGINBOTH~AM, Clerk (II) PAGENO="0003" CONTENTS Page Statement of Rosel H. Hyde, Chairman, Federal Communications Com- mission; accompanied by Max D. Paglin, Executive Director; Stanley E. McKinley, Deputy Executive Director; Richard F. Solan, Budget Officer; Delbert H. Flint, Personnel Director; Jack N. Hand, Chief, Data Processing Division; Alan R. McKie, Acting Chief, Management Information Division; William H. Watkins, Chief Engineer; George S. Smith, Chief, Broadcast Bureau; Bernard Strassburg, Chief, Common Carrier Bureau; James E. Barr, Chief, Safety and Special Radio Services Bureau; Sol Schildhause, Chief, CATV-Task Force; John R. Evans, Deputy Chief, Field Engineering Bureau; Richard L. Franz, Assistant Chief-Management, Broadcast Bureau; and Charles R. Cowan, Assist- ant Chief-Management, Common Carrier Bureau 2 EXHIBITS A-Combined program fact sheet 3 B-Organization chart 4 C-Program structure breakdown 5 D-Program I: Policy direction and support 11 D-1-Proposed program structure-FCC 13 E-Program II: Research and planning in communications technology.~. - 30 F-Program III: Broadcast 38 G-Program IV: Common carrier 41 H-Program V: Safety and special radio services 46 I-Program VI: Community antenna television 49 J-Program VII: Field engineering and enforcement 52 K-Program VIII: Reimbursable programs 55 TOPICAL INDEX Part 1.-Overall agency operations 2 A. General support program-Program I: Policy direction and sup- port 11 B. Budget process 13 C. Accounting system development 18 D. Management information system 19 E. Internal audit system 21 F. Automatic data processing 24 G. Personnel management 26 H. General Accounting Office reports 29 Part 2.-Program review 29 A. Program Il-Research and planning and communications tech- nology B. Program Ill-Broadcast 37 C. Program IV-Common carrier 40 D. Program V-Safety and special radio services 45 E. Program VI-Community antenna television 48 F. Program VII-Field engineering and enforcement 51 G. Program VIII-Reimbursable programs 55 APPENDIXES A.-Written responses of the Federal Communications Commission to questions submitted by the subcommittee 57 B.-"Changes in Frequency Allocations since 1946," FCC (May 1, 1968) 83 C.-Personnel activities-Federal Communications Commission 89 (UI) PAGENO="0004" / / PAGENO="0005" SURVEY OF GOVERNMENT OPERATIONS PART 6-FEDEflAL COMMUNICATIONS COMMISSION WEDNESDAY, APRIL 10, 1968 HoUSE OF REPRESENTATIVES, GOVERNMENT ACTIvITIEs SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, D.C. The subcommittee met at 10:00 a.m., in Room 2247, Bayburn House Office Building, the Honorable Jack Brooks, presiding. Present: Representatives Jack Brooks, William S. Moorhead, and Margaret M. Heckler. Also present: Ernest C. Baynard, staff administrator; William M. Jones, counsel; Irma Reel, clerk; and Lynne Higginbotham, clerk. Mr. BRooKs. The Government Activities Subcommittee, having been duly organized under the rules of the House of Representatives, is hereby called to order. Today the subcommittee is reviewing the economy and efficiency of the Federal Communications Commission. The Commission was created by the Communications Act of 1934 and administers that act as amended. It also has additional regulatory jurisdiction under provisions of the Communications Satellite Act of 1962. Under the Communications Act, the Commission has broad responsi- bilities and authorities. Fundamentally, however, the Commission is charged with regulating interstate and foreign commerce in com- munication by wire and radio so as to make available, so far as possi- ble, to all the people of the United States, a rapid, efficient, nation- wide, and worldwide wire and radio communications service. The advent of television after World War II significantly increased the responsibilities of the Commission. At present, the Commission is evaluating the impact computers will have on the communications network of our Nation. As time passes, the responsibilities of this Commission to the average American citizen will continue to increase enormously as further progress is made in perfecting the technologies inherent in our Nation's communications. At this hearing, we want to review the operations of the Commis- sion on a program-by-program basis to determine the nature of each of the Commission's programs, the extent of tax funds applied to them, and what the taxpayer is receiving for his money. The Chairman of the Federal Communications Commission, the Honorable Rosel Hyde, is with us today. Before getting into the questions the subcommittee has, Mr. Chairman, would you please introduce the officials of the FCC accompanying you. (1) PAGENO="0006" 2 Mr. HYDE. Chairman Brooks, I have with me at my immediate right Mr. Max Paglin, who is our Executive Director; and we have with us Mr. Stanley McKinley, Deputy Executive Director; Mr. Richard Solan, Budget Officer; Mr. Delbert Flint, Personnel Direc- tor; Mr. Jack Hand, Chief, Data Processing Division; Mr. Alan McKie, ~Acing ~Chief, ~[anagement Informaio~ Division; Mr. Wil- liam IT. Watkins., Chief Engineer; Mr. George S. Smith, Chief, Broad- cast Bureau; Mr. Bernard Strassburg, Chief, Common Carrier Bureau; Mr. James E. Barr, Chief, Safety and Special Radio Services Bureau; Mr. Sol Schildhause, Chief, community antenna television task force; and Mr. John R.. Evans, Deputy Chief, Field Engineering Bureau. We also have Mr. Franz, Assistailt to the Chief, Broadcast Bureau; and Mr. Cowan, Assistant Chief of the Common Carrier Bureau. Mr. BRooKs. Thank you very much, Mr. Chairman, for bringing your able staff ~with you here today. We have a number of detailed questions concerning various aspects of the management of your agency which we would like to submit to you for written responses to be placed in the record, but at this time we would like to discuss some of those management concepts in general terms. To begin, I would like to submit exhibits A, B, and C, A being a fact sheet on your combined, program, B being your organization chart, and C being the program budgeting breakdown, and ask if you do have a fact. sheet indicRting the total funds available to your agency as a whole for fiscal year 1968? Mr. HYDE. Yes; we do. It's attached under exhibit A, a document the staff has. If not, we are prepared to submit it at this moment. PART 1.-OVERALL AGENCY OPERATIONS Mr. BROOKS. That's correct. Without objection, we enter those into the record. (Whereupon, exhibits A, B, and C were entered in the record as J~ollows:) PAGENO="0007" 3 ExHIBIT A-FACTSHEEP-C0MBINED PEOGRAM-FOC DEPARTMENT OR AGENCY PROGRAM SUBPROGRAM -- 300 PTWI Comb1ne~ CODE CODE CODE 300 ANALYSIS AND CONTROL CODES 300 4 FISCAL YEASt Umbligstst Appcopcistiss or Coresat Total Total Obligated Carryorsc YcarReqocot Aenilabis crRspssdsd 355 "In house" inputs _______________ _______________ _______________ 310 Personnel: __________________ __________________ 311 Comp. __________ _____________ i5,667,21~8 312 Benefits _______________ ______________ 1,163 ~65?~ 313 Travel ______________ ______________ 218,500 320 Expenses: ________________ 521 Communications ________________ ________________ 522 Transportation ________________ ________________ 61 P000 523 Printing ______________ ______________ 225,0QQ~ 524 Supplies and Consum- able Materials ______________ ______________ 515,200 530 Capital Equipment _______________ _______________ 307,000 540 Land and Structures _____________ 541 Additional Investment _________________ 542 Rents _______________ 550 Tot~ ___ ____~~00Q -___ 9 600 Funds distributed ________________ 610 Contracts _________________ 620 Grsnts _______________ _______________ 6iQ.,QQQ.. 630 Loans _____________ 640 Benefits _________________ 650 Other __________________ 660 Total _______________ _______________ `700 ~ _____________ _____________ 19,171~,00Q_ ______________ Prior Fiscal Year 000 Inpst-output ratio _____________ 810 1. Input _____________ - _____________ ___________ - _____________ - 811 1. Output ____________ 820 2.Inpst _____________ - ____________ - _~_-_- - _____________ - 821 2. Output _____________ 830 3. Input _____________ - -----_----_- - _____________ * 831 3.Output ____________ - _L____________ - ----~----- - ____________ - 340 4. Input ____________ ___ - ___.__ - ____________ * 841 & Output ___________ - __________ - ___________ - ____________ * 850 . Input _____________ - _________ - _____________ - 851 Output ____________ ___________ - ~__.-- - ____________ - 060 Input _____ 861 Output ____________ - ~ - ________ ____________ - 870 .. Input _____________ :~4~:::t ____ ____ ____ ____ 881 8. Output _________________ .__ ________________ Printed turns, at Esgas Gucorsasat Aslielties Bsb,snntttse, Chalconfl äsukBessks as-NI-la øru PAGENO="0008" a.' I a a aPlonniog Advisory Copmtae~'~ L~.. - - - - [CATV Toa~ Force I D~R~E~ BOM!D 1 ~ 1 LEGISLATiON DIVISION I LITIGATIOIIDIVISION I ENFORCCMENT&DEPENSE' a- DIVISION I IADMNISTRATIVE LAW& OPFI~E OP I I TREATiES DIVISION. HEARIa4G EXAMINERSJ BROADCAST BUREAU OF NETWORK STUDY BROADCAST FACILITIES DIVISION HEARING DIVISION RULYSE STANDARDS DIVISION COMPLAINTS & cOMPUANcE DIVISION LCENSE DIVISION RESEARCH& EDUCATIONOIVISIOIN I~!!~WAL & TRANSFER DiVISIOn OFFICE OF~~ 4 OFFICE a ,_C}IIEE ENGINEER 1ThELSECR~ARy 1~OFFICE OF INFORMAT1O~j I fMINUTE&iULESDIVISIQN L~ I DIVISION LABORATORY DIVISION DOCKETS DIVISION RESEARCH DIVISION FREQUENCY ALLOCATIONS1 I ~1REATY DIVISION 1LIBRARY DIVISION - - - - -~-I-i______ SAFETY AND SPEClAL RADIO'I FIELD ENGINEERING BUREAU SER VICES BUREAU _________________________________ AVIAtION & MARII4EQIVISION SNDUSTRIAL & PUBLIC SAFETY RULES I ENGINEERING S FAóLITIES DIVISION LEGAL, ADVISORY&ENFORCEMENTDIVIS~ FIELD OFFICES DIVISION DIVISION AMATEUR & CITIZFNS.DIVISIQEI. JINOUSTRIAL & PIJBLICSAFET.YFACILITIESJ. ITNITORING SYSTEMS ~IVI5I~4 ~XItfl3IT B-ORGANiZATION CHART FEDERAL ~OMMUNIOATIONS cOMMISSIOM r L_~ I OFFICE OF EXECUTj4II L~ DIRECTOR PERSONNEL DIVIS1ON DAtA PROCESSING DIVISION I I ESUOGET 6 FISCAL DIVISION I .`PROPERTYMANAGEMENT `1 DIVISION * * I MANAGEMENT INFORMATIOHI GIVISION EMERGENCY COMMUNICA. TIONS DIVISION ~ADMINISTRATIVE SERVICES LP1VISION L COMMON CAR.RIER.BUREAU FIELD OPERATIONS DIVISION DOMESTIC SERVICES & FACILITIES DIVISION 100MEST1C RADIOGIVISION DOMESTIC RATES DIYISION 1ECONOMIC STUDIES DIVISION INTERNATIONAL 6 SATELLITE LCOW4UNICATIONS DIVISION - PAGENO="0009" 5 EXHIBIT C-PROGRAM STRUCTURE BREAKDOWN FEDERAL COMMUNICATIONS COMMISSION Program Structure Breakdown, April 10, 1~68 Program I: Policy direction and support A. Commissioners B. Office of Executive Director 0. Legal services D. Office of Secretary E. Office of information Program II: Research and planning in communications technology A. Spectrum planning and research B. Frequency management C. Communications technology Program III: Broadcast A. Rules and standards B. Research and education C. Complaints and compliance D. Application processing E. Hearings F. Network study G. International Program IV: Common carrier A. Domestic rate regulation B. Domestic service regulation 0. Domestic radio regulation D. Accounting regulation E. International and satellite communications Program V. Safety and special radio services A. Regulation B. Authorization of service C. Enforcement and hearings Program VI; Community antenna television A. Processing applications and petitions B. Rulemaking and research C. Hearings Program VII: Field engineering and enforcement A. Monitoring B. Inspections C. Investigations D. Application processing Mr. BROOKS. Could you tell us the total number of employees in your agency and the geographical extent of your operations, Mr. Chairman? Mr. Hmn. Yes. Mr. FLINT. The strength as of April 9 is 1,481. Mr. HmE. And Mr. Flint, what part of this is assigned to field? Mr. FLINT. 422 employees are assigned to the various field organiza- tions of the Commission. The bulk of these, 335, are assigned to the field ofi~c'~s and monitoring stations of the Field Engineering Bureau which jY~ Located throughout the country. ~ Hmn. Mr. Chairman, that is in general the total staff and its ~Sation. All those not classified as field would be here as the head- quarters. We also have small field organizations of the Common Carrier Bureau, Safety and Special Radio Services Bureau, Chief Engineer aud Executive Director. We will check those figures. Mr. BROOKS. Very fine. That will provide an accurate figure for the record. (The information to be supplied follows:) Headquarters staff 1, 059 Field staff 422 96-501-68----2 PAGENO="0010" 6 What is the Civil Service limit on your strength? Do you have that, ~ Mr. Flint? Mr. FLINT. We don't have a ceiling, per Se. Mr. SOLAN. No, we do not have a strength ceiling. We do have a ratio on the number of employees~ in the personnel office. Mr. BROOKS. Under yo'ur program budgeting breakdown, do you have a support program covering the operations of your office and other policymaking personnel not directly attributable to a program function? Mr. H1~DE. Yes, we do. Our support program includes the Chairman, the Commissioners- we are, as you know, a bipartisan agency of seven members appointed by the President, one member appointed by the President to be Chair- man. We have our top staff officers, as they might be designated, that is our Executive Director, who is responsible for coordination and administration, our General Counsel, chief legal adviser, Secretary's office-well, to complete the group, we have our Office of Information. Now, these are-this is the part of the staff which you might call general support. We have our operating bureaus, which are set up pretty much along the lines of the industries which we regulate or license. The policy direction and support arrangements or program are pretty well covered in our document exhibit D. Mr. BROOKS. Exhibit what? Mr. HYDE'. D. Mr. BROOKS. This is what you cover your support program under? Mr. HYDE. Yes. Mr. BROOKS. Yes, I understand; but I was trying to see where it fitted in exhibit B under your breakdown where you have four of your programs clearly delineated and the remainder are somewhat obscure to me. Mr. HYDE. You are referring to this chart of the Commission organization? Mr. BROOKS. Yes; that's right. Mr. HYDE. May I refer you to the very bottom tier to begin with and you will see there the operating bureaus which I mentioned. Mr. BROOKS. Those are four of your programs. I have those spotted. Mr. HYDE. What we have above that, between that and the Com- missioners, would be offices, organizational units designed to support. Mr. BROOKS. Where is your research and planning, program 2, is this under your Broadcast Bureau, or it is - Mr. HYDE. No; under the Chief Engineer. Mr. BROOKS. You have the Research Division under your Chief Ei~gineer? Mr. HYDE. Ye's. That is part of it. He's our principal scientific and technical adviser. We are undertaking to set up additional policy research capability, but as of now this function has been largely handled through the Office of the Chief Engineer. Mr. BROOKS. Under that arrangement the chart seems to deviate to some extent from the program budgeting concept shown in exhibit A, I believe. Mr. HYDE. Yes. PAGENO="0011" 7 Mr. BRooKs. That's what I'm trying to determine. Which ~ne are ~ we operating under, or which are we headed toward? Mr. ~ I'm going to ask Mr. Paglin to give you further details, We are in the process of transition. We have been working very diligently, and I think making considerable progress in the develop- merit of the program planning concept, but in the meantime, we have been operating under the kind of approach that's outlined here. I will ask Mr. Paglin to discuss it. Mr. BRooKS. One other thing. Am I right, assuming that Commu- nity Antenna Television, program 6, is covered in your CATV task force? Mr. PAGLIN. Correct. Mr. BRooKs. Headed by this gentleman? Mr. PAGLIN. Yes; that's correct. Mr. BRooKs. So that's just stuck off there at this point in your chart, but in your program planning you are conceiving of a regular pro'- gram that could cover that activity? Mr. PAGLIN. Correct. Mr. ~ Chairman Brooks, I would like to say that the Commu- nity Antenna Television task force might very well have been in this tier at the bottom, but this is a new phenomenon, or new service con- cept. Mr. BROOKS. They haven't cut that pie up, so you're waiting to see how they slice it? Mr. HYDE. That's right. It has some of the functions of broadcast service, and in some respects it's considered to be competitive with broadcast service. We found it appropriate to set up a special group to handle it, until its true character would be developed to the point-it did not fit precisely with any of the other organizational units, and we set up a special one. Mr. BROOKS. That's right. And it should be a separate program until you decide. Mr. Paglin, did you want to comment on the support program? That seems to be sort of spread out in tier two. Mr. PAGMN. The organizational chart, which is exhibit B which has been provided for the committee, derives from an actual descrip- tion of our organizational operations, Mr. Chairman, which comes as a result of an amendment of the Commtinications Act made by the Congress in 1952, when our organization was set up on the basis of bureaus as such, and the actual language of the statute when the Congress amended the act spoke in terms of-and I am aware of the fact that some of this language is not presently in vogu&-but in 1952, when the Congress ordered the structural reorganization of the Commission, it stated, and I am referring, for the record, to section 5(h) of the act-in which the Congress directed that we shall organize-the Commission shall organize its staff into (1) integrated bureaus to function on the basis of the Commission's principal work- load operations, and (2) such other division organizations ~is the Commission may deem necessary. Consequently, the Commission, which theretofore had been divided for many, many years, since 1934, on a-shall I say-a professional basis. That is to say, we had a law department, an accounting department, and an engineering depart- PAGENO="0012" 8 ment, which took care of all of the major regulatory programs in the Commission's legislative charter. Under the 1952 amendment we were directed by Congress to establish our organization in terms of ~func- tions. That is to say, we regulated broadcasting; therefore, you have a broadcasting bureau, which integrated in itself would have lawyers, engineers, accountants, and such other personnel as would be necessary. Similarly, with respect to the communications common carrier functions; similarly, with respect to the safety and special radio services functions. Then, in addition to that, Congress authorized that we have certain support personnel, such as the chief l~gal adviser, chief engineering adviser, and we have also directly attached to the Commission certain adjudicatory personnel. Mr. BROOKS. Well, we will agree that you have this set up on the basis of the 1952 legislative instructions. Have you made any changes in that or modifications in the last 16 years-I would assume that you have made some as I look at your program structure. Mr. PAGLIN. Right. Mr. BROOKS. So I'd like to find out if you are still operating on the basis of your 1952 charter, or if you are now hopefully trying to reorient this chart to a program basis so it would be a simpler matter for both you and the Commission, or for Congress to see what we are doing in each one of these areas, rather than translate between an old bureau activity and a new program budgeting system in trying to interpolate between them. Mr. PAGLIN. That, Mr. Chairman, is exactly our direction and the path we are taking in the presentation today in the exhibits we have given to the committee. These are made along the Commission's con- ventional program lines. Our program categories, such as we show them to you in this exhibit, are the same as those that are presented in our annual budget to the Congress. They have been approved by the Budget Bureau. Mr. BROOKS. You have been interpolating, that into your own structure? Mr. PAGLIN. That's correct. On a program basis. We submit break- downs on the various activities which go into a particular program. Mr. BROOKS. Have you considered the possibility of redoing your bureau breakdown to where it would more nearly conform to your budgeting of all of these activities? Mr. PAGLIN. We are proceeding-that is to say-our programs do not presently, as you correctly discern, flow completely along func- tional or organizational lines. We have certain functions, such as per- formed by data processing, and our hearing examiners, which merge in at a particula~~ program. We try to charge them in our budget to that program. Mr BROoKS But this is not in violation of a program budgeting concept. Mr. PAGLIN. No~ Mr. BROOKS. You can chargo the activity to a program but have a separate bunch of examiners. You just charge them pro rata? Mr. PAOLIN. Correct. Mr. BRooKs. This doesn't violate the program concept, but still would be a little different from this bureau outline and chart. PAGENO="0013" 9 Mr. PAGLIN. Insofar as the legal-organizational setup of the Com- mission, I hesitate to say the direction in which ~e are proceeding in terms of changing these organizational lines If I may make the ob servation, Mr Chairman, as having been the former general counsel of the Commission, and in light of the legislative history to the amend- ment of our act, I would hesitate if someone would ask my legal opinion as to whether or not the Commission could do it without the consent of Congress, at least, and certainly, the consent of the Budget Bureau would be sought in changing the basic structural organization of the Commission that is contained in the act. Mr. BRooKs. Conceding that that might be true, have you, as the executive director, considered making such a recommendation, which will be in conformance with your program budgeting system which is presented for request of money to the Bureau of Budget and through the Congressional Appropriations Committees? Mr. PAGLIN. We have not as yet considered any such recommenda- tions. Mr. BRooKs. Does it sound like a wild idea to have your organiza- tion conform to the way you are getting the money or sort of a basic philosophy? Mr. PAGLIN. It's not by any means a wild idea. I think we have not progressed as a small agency to that point. Mr. BRooKs. I wonder, Mr. Chairman, how des that strike you? Have you given him any direction? Mt HYDE We haven't given directions We are not prepared at the moment to suggest what changes should be made in the organization We ~tre taking anOther look at our mission-or our activities in terms of our mission. Mr. BROOKS. By "mission," do you mean your programs? Mr HYDE Our overall program of the agency And up to now it has seemed feasible to us to put the emphasis on executing the program of the agency without revolutionary changes in our organizational setup. Mr. BROOKS. You made all these changes in your budget activities? Mr. HYDE. That's right. Mr. BROOKS. But would it be revolutionary if you make them in your-implement them in your budget figure? Mr. HYDE. No. Mr. BROOKS. I don't think that's revolutionary. r Mr. HYDE. We can put emphasis on Commission programs, we can talk in terms of alternative methods of resolving communications policy problems without having to reorganize-4o change our organi zation. I will give you an example, Mr. Chairman, of what I am try- ing to explain. We have a group of hearing examiners, one unit, under the chief examiner. Now, there are men in that group whose back- grounds would recommend them for common carrier work. There are some that can handle hearing work from almost any- Mr. BRooKs. This is the example you gave me a minute ago-hearing examiners. You just charge each of the bureaus that portion of the work that is performed for them. We have been through that. PAGENO="0014" 10 Mr. HYDE. But I d~u't see any necessity of distributing the hearing ~. examiners through the operating bureaus. Mr. BROOKS. Yes. Mr. HYDE. The size of our `agency being what it ~ Mr. BRocu~s. it's not incompatible to charge off with a program budgeting concopt, as I said before-4o charge off that percentage of the hearing exs~miners' cost attributable to CATV, 1~or example. Mr. H~rrE. This is exactly the way we are attempting. Mr. BRooKs. Without setting up a whole set of special examiners to operate under tile (JATV task force. Mr. HYDE. T1~iat was the point I was endeavoriiig to mal~e. Mr. BRooKs. But the support program is still sort of spread out in tier two-th~n you have your research down under your engineer and you're setting up a program on that. Mr. HYDE. Yes, sir. We have entered into discussions with the Civil Service Commi~sion, and we expee9t to add some. expertise, particu- larly in the area of policy research. We would expect, according to pur present plans, tp have that-a group that would advise directly with the Commission and would support our overall program. Mr. BROOKS. Arid they would he working pretty closely with your support program? Mr. HYDE. Oh, yes, indeed. Mr. BROOKS. Which is g~ing to have some~-as you indicate, soüie policy direction? M~r. Hn~E, Tl~t's right. From the Commissioner particularly, ~r, BROOKS. ~Do you have, any in there now? ~W~here do you ~et that policy direction? I haven't lo~t~d that too cl~arly. tinder that chart `which you submitted, I just wondered where that fits in? It di~tn't seem to be indicated too c~early.~ Mr. HYDE. Well, the Commissioners first, of course, then there is the E~ecutivë I~iréctor and his staff, to help with th~ coordiii'ation of it; our chief te4inical an~d scientific adviser, the Chief Engineer; th~e General Counsel, who's the general legal adviser to the Commission. Now, this is where the general policy support comes from. Mr. BROOKS. Do they have any poliãy of working together in évolv- ing a general policy and trying to determine where communications are going and what the I~ederal, role ought to be and what your effec- tiveness is in getting some public service-fiot a whole lot, but just some public service oqt of this benefit that you bestOw on various aiid sundry folks arotmd the country? Mr. ITXDE. Yes. The principal staff officers that I mentiotied, the General Counsel and Chief Engineer, give advice to the Cornthissioñ, which cuts across all bureaus. Now, a~ a regular procedure with' the Commission, wehave the chiefs of all of the bureaus to participate `ih the discussions a~nU in the staff work, looking toward the develo~ment of general policies and also making their contributions to policy, which you might say, would relate more directly to individual bureaus. We have, as a matter of fact, adopted a practice of having a policy briefing session. The first item of business from week to week on our agenda-if ~ou ~v~re to look at our typical agenda-there's one section that's called General Agenda. ~Fhat's the one which will be of interest to the entire establishment. Following the General Agenda, we have the separate agendas for Broadcast Bureau, Safety and Special Services, and so forth. PAGENO="0015" A. GENERAL SUPPORT PROGRAM Mr. BROOKS. Thank you. Would you give us a brief justification for the size and extent of your support program? How many people will work in it, under this breakdown? Mr. HYDE. All right. Chairman Brooks, if you will refer to exhibit D- Mr. BROOKS. Yes, which we will put into the record without objec- tion at this point. (Whereupon, the document marked exhibit P was entered into the record as follows:) EXHIBIT P-FACT SHEET-POLICY DIRECTIONS AND SUPPORT PROGRAM 1. Output 2. Input 821 2, Output 830 3. Input 831 3. Outnut 500 510 511 512 513 520 521 522 523 524 530 540 541 542 550 600 610 620 630 640 650 660 `100 100 200 ~00 400 DEP4RTMENT OR AGENCY WN' I PROGRAM Policy Direction and SUBPROGRAM ~ CODE - - CODE e&Ai.vsIa AND CONTROL CODES FISCAL YEAR Uuobligate,t Cyc,uc Appcopci.tksc Cucrest Y.arRequcat Total ,tccibcblu ~ TetRi Obligated Eop~d.d "In house" inputs Personnel: Conip. Ben fits Travel Expenses: l87~155 33,000 ` Communications Transportation ~*. lo,ioo 2,230 ~______________ ~ Printinw 26.000 Supplies and Consum- 172,29B 21~ ,00 Capital Equi~ntent Land and Structures Additional Investment Rents Total - 3,073,781 Funds distributed . Contracta Grantia Loans BeneOts Other Total Total ~. 300 810 811 820 Prior Fiscal Yo 4. Output 5. Input 5. Outnut 840 841 850 851 860 861 870 871 880 881 6. Input 6. Output 7, Insist 7. Output 8. Input 8. Outsut Printed for ueesf fleece GuverecosestAct tttus5ebcommtttse, Cholrsss 3sckflrsoke PAGENO="0016" 12 PROGRAM I: POLICY DIRECTION AND SUPPORT Statutory authority Communications Act of 1934, as amended, and the Communications Satellite Act of 1962 Nature of progra'm and benefits The Commissior~ers' policy and support personnel which are not directly charge- able to specific programs are in the following areas: The Othces of the Chairman and the C~nanrissioners, Oflice of Executive Director, Office of General Counsel, Office of the Secretary, and Office of Information. The Federal Communications Commission is a bipartisan independent regula- tory agency composed of seven commissioners appointed by the President, by and with the con~cnt of the Senate, one of whom the President designates as Chairman. The normal term of appointment is 7 years. Commissioners provide policy direction for the agency in the numerous and complex issues which come before the Commission as it carries out its regulatory responsibilities in the rapidly developing field of communications. Its mission covers adminis- trative, quasi-judicial and quasi-legislative responsibilities in the regulation of interstate and foreign communications, by wire, cable, radio, and satellites, with the objective of- "making available, so far as possible, to all the people of the United States a rapid, efficient, nationwide, and worldwide wire and radio communication serVice with adequate faeilitles at reasonable charges, for the purpose of the natknal defense, for the purpose of promoting safety of life and property through the use of wire and radio communication. * * * (Sec. 1. Communications Act.) The Chairman of thO Commission, in addition to his duties as a commissiofler, torves as the chief executive officer of the agency. In this capacity, he bresic~tes at Commission meetings and represents the Commission ~t legislative and budgetary hearil~gs before the Congress and the Bureau of the Budget. He also tets as the primary manager of Commission administrative operations, including activities affeetii~g other Government agencies and congressional liaison ±unetionis. The specific description of organization, functions and responsibilities of the major staff units listed above (i.e., Executive Director, General Counsel, Office ~f the Secretary, and Office of Information) is contained In part 0 of the Com- mission's rules and regulations. The Executive Director is directly responsible to the Commissioll and works under the supervision of the Chairman, assisting him in carrying out of the Com- mission's organizational and administrative responsibilites. His principal role is to coordinate the activities of the staff units of the Commission, with the objective of prompt disposition of the matters with which they are charged. He is directly responsible for personnel management, budgetary planning and administrative services operaitions, and supervises implementation of the Public Information Act of 196~. Illustrative of work outputs in activities supervised by the Executive Director are: more than 10,000 personnel actions of all types processed annually, preparation of various budget arid planning proposals, duplicating of approximately 35 million impressions a year and the processing of more than a million pieces of mail annually. The Executive Director also super- vises the emergengy communications functions of the Commission and reports directly to the Defense Commissioner in this responsibility. The Office of General Counsel is responsible for advising the Commission on legal matters involved in setting and implementing policy. The General Counsel also represents the Commission in litigation in the courts, coordinates the prep- ~ration of the Commission's legislative program and acts in international corn- raunications mat'ters. During fiscal year 1967, the Commission participated in 99 Federal court proceedings, including actions pending before the Supreme Court, the various Courts of Appeal and U.S. District Courts. The most recent Supreme Court case involved the vital issue of the Commission's role and and authority in regulating community antenna television systems. The Office of the Secretary has the responsibility for signing and processing certain Commission correspondence and documents. He is the custodian of the Commission's seal and records and maintains minutes and records of Com- mission actions and docket proceedings. The Secretary supervises the library dnd assures that library procedures and volumes procured are responsive to the increasing Ooinraission requirements for information. PAGENO="0017" 13 The Office of Information is responsible for informing the public of Commis- sion actions, provides internal information services for the Oommission, and acts as liaison with representatives of the press. Name of the offIcial having direct responsibility over the program See FCC organization chart, exhibit B, herein, for names of Commissioners and Staff Officers. Mr. HYDE. There is an attached narrative following the tabulation, which I believe summarizes our policy direction and support. Mr. BROOKS. I didn't notice in that the number of people assigned to that support section. Mr. HYDE. I was looking for that, too, as you asked me the question. Mr. BROOKS. I don't think it's in there. That's why I asked. Mr. HYDE. We have the total cost, but we do not have the breakdown. I will supply that, if I may. (The information requested follows:) Number of employees in policy direction 45 Number of employees in support 205 B. BUDGET PROCESS Mr. BROOKS. All right. Would you outline briefly and give us a status report on the efforts of your agency in the implementation of program budgeting? We have touched on that. Mr. HYDE. We have supplied to your staff our proposed program structure, which has been developed by the Commission to respond to the request of the Budget Bureau and several Members of Congress that we convert our budgeting system to a program basis. Mr. BROOKS. Do we have any additional copies of that? Mr. HYDE. We can supply you additional ones. Mr. BROOKS. Do we have any now? We had one that was submitted. We will submit one of these as exhibit D-l. Would you proceed, sir 9 (Exhibit D-l follows:) EXHIBIT D-1-PR0P05ED PROGRAM STRUCTURE-FCC FEDERAL COMMUNICATIONS COMMISSION Proposed Program Structure, April 10, 1968 The program categories in the Commission's presentation to the Government Activities Subcommittee are those currently used by the agency for preparation of its annual budget. The Commission has developed a new program structure in accordance with guidelines promulgated by the Bureau of the Budget. A copy is attached. This new structure has been adopted by the Commission and approved by the Bureau of the Budget. It will form the basis for implementation of a planning-programing-budgeting sysitem within the Federal Communications Commission. The first steps toward implementation will be taken during the next several months with the preparation of a program and financial plan for the entire agency and one program memorandum. FCC program ~tru'cture I. Research and planning in communications technology Long-range planning and research to provide for future expansion and the equitable distribution of the radio spectrum on the basis of value to the ~ ation: and studies of communications technology. 96-501i--68----3 PAGENO="0018" 14 A. spectrum planning and research Evaltiation of present uses and delineation of future needs, formulation of plans for meeting these needs, and study of potentially useful concepts and techniques. B. Frequency management The equitable distribution of the radio spectrum on the basis of value to the Nation to insure maximum use with minimum interference. 1. International allocations and agreements.-Preparation for and participa- tion in international (including regional) conferences for effecting allocation of the radio frequency spectrum among specific radio services, and for the resolution of harmful interference. 2. National frequency usage.-Includes national allocations in accordance with international agreements, executive branch coordination and negotiation, and non-Government service allocations. 3. Frequency records.-Maintenance of the record of frequency assignments by services and forwarding to the IFRB all Government ~ind non-Government notifications for inclusion in the international publications. C. Communications technology Studies, methods, systems, techniques and equipment used in advancing the state of the communications art. 1. Technical studies-Includes investigation of the need for and conduct of research in various technical fields with a view toward improvement and advancement in the state of the art and in efficient use of the radio frequency spectrum and communications by wire and cable. 2. E~operi~rnenta~ radio services.-Administration of temporary use of portions of the radio spectrum for practical study of the feasibility of developing a science or technique. 3. Equipment ~haracteristics.-Involves anaylsis of equipment specification and evaluation o~ its technical performance to determine whether it complies with the Commission's technical standards. 4. FCC equipment standardization dud developmenf -Covers the development and standardization of measurement methods and equipments employed by the Commission in it~ type approval, type acceptance, and enforcement activities, iiicluding the necessary calibration functions. D. Emnergcsrcy comivmuuicatioas systems development and preparedness planning Planning, research, studies, and activities involved in the preparation of emer- gency operational communication systems and development of preparecIne~s plans, II. Mass communications by wire and radio Radio and wire transniissions of programs intended primarily for reception by the general public. Regulatory activities include: administration, policy arid rulemaking, authorization of service, economic and technical studies, enforce- ment, participation in and preparation for international conferences and treaty negotiations, adjudication, and litigation. A. Commercial Mass communications media transmitting commercial programs and operated for a profit. 1. Aural broadcasting-AM and FM broadcast stations, including related auxiliary stations. 2~ Television broadcasting-Television broadcast stations including related auxiliary stations, translator and booster stations. 3. Wire and cal~le transmissioa systemns.-CATV and other systems including the Community Antenna Relay Service. 4. Planning, studies, and developmental broadcast services.-General program planning activities and economic/technical or other studies associated with commercial mass communication media. Also, activities involving experimental and developmental broadcast stations of a commercial nature. B. Noncommercial Mass communications media operated by nonprofit organizations. 1. Educational radio.-FM broadcast stations operated by nonprofit organiza- tions for educational programing. PAGENO="0019" 15 2. Educational television.-TelevisiOfl broadcast stations operated by nonprofit organizations primarily for educational programing. 3. Instructional ficoed television (in-school) .-Instructional television fixed stations used exclusively for in-school instruction. 4. Planning, studies, and developmental activities.-General program planning activities and economic/technical or other studies associated with noncommercial mass communications media. Also, experimental and developmental activities intended for noncommercial applications. III. Intercommunications by wire and radio. Radio and wire transmission between and among individuals or individual entities either by private facilities or through public facilities provided by a communications common carrier. Regulatory activities include: administra- tion; policy and rulemaking; authorization of service and facilities; regulation of rates, services, and accounting practices of common carriers; economic and technical studies; enforcement; preparation for and participation in international conferences and treaty negotiations; adjudication and litigation. A. Non-Government public facilities Regulating rates, services, and practices of communications common carriers which furnish interstate or foreign telephone or telegraph service for hire to the public by wire, radio, or satellite. 1. Domestic rate regulation.-E'stablishment and maintenance of reasonable and nondiscriminatory rates for interstate communications services. 2. Domestic services and facilities-Provision and maintenance of efficient and adequate interstate voice and record communications services and facilities. 3. International rate regulation.-Establishmellt and maintenance of rea- son'aible and nondiscriminatory rates for international telephone and telegraph communications services, including communication between the continental United States and its territories and possessions, between the latter places, and between the United States, its territories and possessions and ships at sea. 4. International services and facilities.-Provision and maintenance of effi- cient and adequate international voice and record communications, services and facilities. 5. Planning and studies.-Studies and proceedings regarding formulation and revision of common carrier regulatory policies, programs and rules and special projects in furtherance of the various program objectives. B. Private facilities Regulating radio communication systems for use by persons, businesses, State and local governments, and other organizations licensed to operate their own systems as an adjunct to their primary business or other activities. 1. Protection of life and property.-Radio systems licensed for `the primary purpose of facilitating the protection of life `and public and private property. 2. Air, sea, and land transportation.-Use of radio systems to provide naviga- tional aids and safety and operational communications for air, sea, and land transportation. This program includes use of radio for safety at sea purposes and public fixed radio operations in the State of Alaska. 3. Commercial and nonbusiness operations-Use of radio to facilitate the operation's of all forms of industry and business enterprises and many non- commercial activities. 4. Amateur and personal communications.-Radio systems licensed for amateur radio operations, and for personal radio communications, radio signaling, and control of remote objects or devices. 5. Planning, studies, and developmental prograins.-Research and studies, analysis and planning including radio communications systems licensed on a developmental basis, looking `toward more effective `and new uses of radio in the public interest for priva'te intercommunications. IV. Commission and support activities Activities of the FCC which are related to or support the basic program cate- gories but are not conveniently allocable to these categories. A. Commission Activities of the seven commissioners and their staffs. PAGENO="0020" 16 B. Ea~ecutive Director Administrative supervision and coordination of agency operations, covering all the activities of `the Executive Director and his immediate office. U. Adminisirative staff and supporting services Activities `of the Office of Reports and Information, Office of the Secretary and Divisions of the Office of Executive Director. D. Legal staff services General legal services provided by the Office of General Counsel. E. Engineering staff services The overall administration of programs conducted by the Office of Chief Engineer and other special activities of this Office. F. Field engineering/enforcement activities The overall administration of the field engineering and enforcement program (Office of the Bureau Chief, Field Engineering Bureau) and special programs administered by the Field Engineering Bureau, including air hazard analyses, operator examinations, and the development and maintenance of equipment used in the field. 0. Administration of the hearing entities The overall administration of activities of the Office of Opinions and Review, Review Board, and Office of Rearing Examiners. Mr. HYDE. I was going to say that the Commission has developed a new program structure in accordance with guidelines promulgated by the Bureau of the Budget. We are supplying a copy. This new struc- ture has been adopted by the Commission and approved by the Bureau of the Budget. lit will form the basis for implementation of a planning- programing-budgeting system within the Federal Communications Commission. The first steps toward implementation will be taken during the next several months with the preparation of a program and financial plan for the entire agency and one program memorandum. Mr. BROOKS. Now, I haven't studied this carefully, but as I under- stand it, this is going to coordinate the actual implementation of your program budgeting system which you now have in effect? Mr. HmE. That's correct. It's designed for this purpose. Mr. BROOICS. This is going to be done with congressional approval? Are you going to submit this with a- Mr. HYDE. I do not believe that it will require congressional ap- proval unless it should require some changes in organizational structure, or make changes which would be inconsistent with the orga- nizational stru~ture that was prescribed by the Congress in the amend- ment that Mr. Paglin referred to. Mr. BRooKs. Mr. Paglin, as former general counsel, do you think it might be wise to get authority to substantially change the organiza- tional system recommended in 1952, some i6 years ago, if you're going to meet the new~chalienges in this industry, in this agency? Mr. PAGLIN. Mr. Chairman, may I answer the question this way? By and large, as I understand it-and I am by no means a budget expert, far from it, being a lawyer. Our budget in fact now is, as I have mentioned earlier, we feel, substantially on a program basis. Sub- stantially it comprehends our operating bureaus. That is to say, by and large the main part of our operations does cover the operating bureaus. As such, we would, even were we someday in the future to be down at the very end of the goal so far as PPBS is concerned, I think by and large we would still be within the confines of the statutory man- date to which I referred earlier. PAGENO="0021" 17 To the extent that we would have to reform our budget in order to follow what we consider to be the needs of the implementation of this PPBS, and it required some fundamental change in our organiza- tional structure, as indicated by circumstances at that stage, we might have to seek some clarification from Congress. This would be my opinion at that stage. Mr. MOORHEAD. Mr. Chairman. Mr. BRooKs. Yes, Mr. Moorhead. Mr. MOORHEAD. Would you contemplate a new organization chart if and when this program is adopted? Mr. PAGLIN. What I was trying to say, Mr. Congressman, was that by and large it would not require new organizational charts as I understand it, because the great bulk of our functions are on a pro- gram basis, if you will, and I'd like that in quotes, because our operat- ing bureaus are "programs," and we prepare our budget presently with the concurrence of the Budget Bureau, on a program basis be- cause it does, by and large, as I understand it anyway, follow program lines. If we needed a change, 1 guess we would first seek the advice of the Budget Bureau, and if it appeared that some legislative change were required in our organization, we would have to go to Congress for a basic change in our organization. Mr. BROOKS. Mr. Moorhead, you will recall that this is one of the agencies that was not on the maii~datory program budgeting list by the Bureau of the Budget, but they have the-I think-the good judgment to make a determined effort to put it on the program budget- ing system. They are apparently now, as we get this today, trying to regroup their implementation and their actual structure to correspond with that program budgeting concept which they have adopted pretty well with the approval of the Bureau of the Budget. Mr. limE. That's right. Mr. BROOKS. Is that about what you have done, and that's the stage you are in now? Is that about it? Mr. HYDE. We are in the transition stage. We couldn't honestly say that we have adopted the program. We haven't achieved it, but we are moving rapidly toward it. Mr. BROOKS. On program budgeting you are pretty well along on that? Mr. hYDE. That's right. I do believe the changes in organization are likely to be in the nature of refinement and qualification rather than changing in basic structure. I do not believe that it will be necessary to eliminate Mr. BROOKS. You'd really upset them all. These lawyers would have a running fit if you just changed all the players. They would really be upset. Mr. MOORIJEAD. Mr. Chairman. Mr. BROOKS. Yes, Mr. Moo~head. Mr. MOORHEAD. I don't think I got my point across. Is exhibit B, this chart, going to be valid, requiring no changes, just as the picture is drawn, after this is in effect? I will still be able to rely on exhibit B? Mr. HYDE. I would think you could. It may be necessary to attach some explanatory note. In the light of the discussion this morning, it might be appropriate on our chart to indicate that the hearing examiners, for example, conduct proceedings related to all of these PAGENO="0022" 18 bureaus that are down there. That's the sort of refinement that I think may be necessary. Mr. MOORHEAD. I see. Mr. PAGLIN. Mr. Chairman, just in order to avoid some miscon- ception, I would tike to emphasize again, insofar as fiscal 1970 is con- cerned, which is the budget that we are now underway on, we are beginning our scheduling on it under our new budget process system, with the concurrence of the Budget Bureau. We are preparing our budget for fiscal 1970 on a conventional basis just as we have been doing all along, just as the presentation we made heretofore to Con- gress-it is on a program basis, if we understand what this committee means `by a program basis. We are moving `toward implementation of the PPBS system in the FCC in fiscal 1970 and beyond. I am sure that this committee would agree with us when we assert that the classical outlines or requirements of PPB are not necessarily devised for small independent regulatory agencies such as the FCC. We have certain needs. We have certain legal requirements, such as, for ex- ample, in our decisionmaking process, perhaps unlike some of the Cabinet departments, where the public has a major role. Unquestion- ably, the public has a role in our decisionmaking. Mr. BRooKs. We like to think the public has a role in some of those other agencies. Mr. PAGLIN. In the resolution of some of our major policies, we have to crank in the views of the public. It isn't wholly the views of the agency, and we must substantiate that and verify it for the courts. We are trying to get the best out of the system and adapt it the best we can. Mr. BROOKS. This will make sense. Just so you are making an ef- fort to evaluate the possibilities and the changes and adapt them to your own agency. Mr. PAGLIN. That's exactly it. C. ACCOUNTING SYSTEM DEVELOPMENT Mr. BROOKS. Mr. Chairman, what is your agency doing in regard to your accounting system now? Mr. HYDE. I will ask Mr. Paglin to answer it, if I may. Mr. PAGLIN. Mr. Solan, of course, is here to answer any specific questions of the committee. Our accounting system has been approved by the General Accounting Office, and it is basically an accrual-cost system. Mr. BROOKS. When was it approved? Mr. SOLAN. 1959. Mr. BROOKS. Were you on an accrual system then? Mr. SOLAN. Essentially so. Our agency uses about 90 percent of its appropriations for salaries and benefits. Therefore, GAO has not stressed a complete accrual system. They figure that since 90 percent of our costs are recorded as they occur, we are, essentially, on a cost basis. Mr. BROOKS. Is it more essentially on an accrual system now than it was on an accrual system in 1959 when it was approved? Mr. SOLAN. Yes. We have made some other changes in the meantime that have brought it- PAGENO="0023" 19 Mr. BROOKS. Do they anticipate bringing it on pretty much a full accrual system? Mr. SOLAN. Yes. We hope to. Mr. BROOKS. What is the problem in doing it? Mr. SOLAN. Well, it's just the number of accounts-4rying to do with an electronic bookkeeping machine rather than a computer. We haven't gotten onto a computer yet, and that is our goal, `to get on a computer. Mr. BRooKs. Make a complete switchover? Mr. SOLAN. Make a complete switchover at that time. Mr. BROOKS. Mr. Paglin, was there anything you want to add on that subject? Mr. PAGLIN. Here again, in our accounting system, it is program- oriented. We attempt to program budget, for planning purposes, and provide ourselves, for management purposes, with the program costs. We have, as part of our accounting system, developed a monthly financial report, which we use quite extensively in our program manage- ment and this report shows the financial plan for personal services and the cost for personal services in the various programs, which, as Mr. Solan mentioned, represents about 90 percent of our total funds. In addition to the plan, the report shows again, as a manage- ment tool, the amount expended through the month, a projection of committed cost for the remainder of the fiscal year, and the available balances in the particular program. The same way with travel funds. We allocate them to the program, and we report them in a similar manner. D. MANAGEMENT INFORMATION SYSTEM Mr. BRooKs. Mr. Chairman, what is the status of your management information system? Mr. HYDE. We have a group of specialists organized to develop information and report it to the Commission as they do on a regular basis. Mr. BROOKS. Where do they fit into your organizational chart under your new program structure? Mr. HmE. It's part of the Office of the Executive Director, and you will find it-it's one of the items listed in the box. Mr. BRooKs. The box called Management Information Division there in the middle? Mr. H1~mE. Right, sir. Mr. BROOKS. Now, Mr. Chairman, have they considered-and I have some other questions to submit to you on that in writing-have you done anything at all on cranking these possibilities into a com- puter and trying to keep an even more up-to-date evaluation of your expenses and costs, more along the lines that you have just delineated, Mr. Paglin, but also up.dating it and projecting it-giving you a more instantaneous reading on those without any additional cost? Mr. PAGLIN. We do now have a part of our management system in terms of some application workload statistics on an automated basis, and we provide the Commission staff and the Commissioners with the latest financial plans in terms of a monthly summary of expendi- tures and the commitments and the existing balances from our existing accounting system. PAGENO="0024" 20 Mr. BROOKS. Some factual data in terms of the number of hearings and the general activities? Mr. PAGLIN. Those things we-they are not yet automated. Our Management Information Division has a whole series of management data which we provide to the staff and to the Commissioners. For example, we have a monthly report on pending applications. Mr. BROOKS. This is part of your management information so you know how many applications you have? Mr. PAGLIN. That's right. Mr. BROOKS. So you can find out how long you are taking to do this, how many people will have 14 television stations, six newspapers and 40 radio stations? Mr. PAGLIN. That is available. Mr. BRooKs. How many they control or own or exercise influence over? Mr. PAGLIN. We can pull that out easily; yes, sir. Mr. BROOKS. You can do that now? Mr. PAGLIN. We can do some of that now-we do have some data- allis not yet on the computer. Mr. HYDE. It's on- Mr. BROOKS. Does it involve the entire structure and not just the financial area? Are you contemplating putting the actual data into it so you can get this information ready and available to your hearing examiners and to the Commissioners? Mr. PAGLIN. You are referring to all kinds of information? Mr. BROOKS. That's right. Mr. PAGLIN. Or ownership information? Mr. BROOKS. Well, ownership and efficiency of operation, and cover- age and hearings, and how many people have television-all the various aspects of it. Mr. PAGLIN. Ultimately we would hope to get a great deal of this basic data-I think what you're referring to in terms of the industry- Mr. BROOKS. That's correct. Mr. PAGLIN. Data coming into computerized form. May I give you an example right now. We are working on a system-you mentioned hearing examiners and data available for them-we are working on a system whereby we will put on the computer an index system of all the Commission reports, precedents, actions, and so on, so that you can get a read-out in the digest index type of all the legal actions of the Commission and the hearing examiners. The lawyers, the Commis- sioners, the staff, and so on, can on a computerized basis, reach into and retrieve that data insofar as what has the Commission done in terms of precedents and policies. Mr. BROOKS. And ownership and impact and all the other data that you can crank in. Do you have any time schedule on that? Mr. HYDE. We have only recently put the ownership of broadcast facilities into it, and we did have some difficulty during what is called the transition period. This came up in connection with some other hearings we had, but we think we resolved those problems, and you will be able to obtain information quickly as to the ownership of broadcast facilities. PAGENO="0025" 21 Mr. BROOKS. Now, on the other facets of your basic data, have you got a schedule of implementing them? Mr. HYDE. Chairman Brooks, we have Mr. Hand who is our com- puter chief here. Mr. BROOKS. All right, ask him. What kind of s~hedule `do you have for getting the rest of the base data into capable hands? Mr. HAND. Our schedule right now calls for putting the payroll and associated payroll financial reporting on the computer. That is being programed at the present time. Mr. BROOKS. Put them on when? Mr. HAND. It will go on possibly in September or by January 1 at the latest. Mr. BROOKS. Of this year? Mr. HAND. That's correct. Mr. BROOKS. It's not on yet? Your financial data is not on there yet? Mr. HAND. Our payroll records are on conventional punchcard equipment at this time and it has been for a long time. Mr. BROOKS. What is your schedule? Mr. HAND. In addition to that, sir, property record accounting and maintenance of property record accounts-we have mentioned the ownership data, which is already on the computer-reference was also made to the, shall I say, the data of the retrieval system in connection with decisions and reports. There are certain engineering operations of many radio applications on the computer, and plans whu~h would be similar to what are already on the computer in the UHF area. There is also a very good possibility of processing the land mobile applications by computer. At the present time we have land mobile license records, but only after they have been licensed, not from the time the application is received. Mr. BROOKS. When are you planning to get those on? Mr. HAND. This is beyond fiscal year 1970. Mr. BROOKS. Fiscal year 1970; another 2 years to get those cranked in? Mr. HAND. Yes. I would visualize that to pick up all the elements that you have been mentioning in connection with an information system-and it certainly is a good potential for a computer-I would say that we would have to schedule it in 1971 and beyond. Mr. BROOKS. It takes time, apparently a lot of time. One thing, Mr. Hand, the Government has about a hundred payroll programs ~ already programed. Have you evaluated those? They might well be ~ adaptable to your own agency. Mr. HAND. We have, sir. Mr. BROOKS. With the minimum of cost to that programing? Mr. HAND. Yes, sir and we are-our long-range plan in connection with payroll would be the obvious one of integrating it with "person- nel accounting," shall I say, from the time that an employee is hired, and we pick up his record at that time and integrate it with our payroll and accounting system. E. INTERNAL AtDIT SYSTEM Mr. BROOKS. Now, on your internal auditing, Mr. Chairman, would you describe briefly your internal auditing system? 96-501-68----4 PAGENO="0026" 22 Mr. HYDE. The Commission does not have a formal internal au- diting program. We do, however, conduct some audit type functions in conjunction with our other work. Utilizing our management office under the Executive Director, we do perform many elements of an audit function. Agenda items are reviewed, proposed work procedures and forms are reviewed, and so forth. if status or work reports indi- cate there is a backlog, studies are made of ways to expedite or simplify the work process. Mr. BROOKS. Do qualified accountants make these evaluations? Mr. HYDE. These functions are done more by people who are expert in administration rather than accounting as such. If your question goes to the audit of financial records- Mr. BROOKS. It goes to the audit of financial activities as well as operations. Mr. HYDE. What I had described goes pretty much to operations. I will ask Mr. Solan, if I may, to give you a response on financial audits. Mr. BROOKS. Well, my concern is an internal audit that is across the board, both as to the general operations of everybody that works for you, every agency, every bureau, every section, plus whether they are Stealing any money or throwing any money away, or how they are spending it, and the type of decisions they are making in their activi- ties related thereto. It's a. management tool and a protection for the Chairman of the Board. We worked out some recommendations with the Comptroller General in 1963 on this, and this is what I was really referring to. I was just wondering how you are coining along on adopting those recommendations. I wouldn't be chairman without an internal audit reported directly to me. Mr. HYDE. We do have a continuing audit on the functions of the FCC, the administrative functions. This is under the direction or coordination of the Executive Director, and we also, of course, watch our financial accounts. If I may I will have Mr. Solan explain how that's done. Mr. BROOKS. All right. Mr. SOLAN. On the fiscal side, we Mr. BROOKS. Briefly on the fiscal side, because that is counting the dollars and cents and where it's spent and so forth-to whom do you report? Mr. SOLAN. We don't have a formal internal audit system as such. 90 percent of our appropriations and funds go for payroll activities and related benefits. Mr. BROOKS. So you just check those over? Mr. SOLAN. We, and GAO-there are three auditors in there now. They come in and make the audits. Mr. BROOKS. You don't have anyone assigned to a special internal audit? Mr. SOLAN. That's right. Mr. BROOKS. They are all your own people? They help make the budget, they help spend it, and they help examine it? Mr. SOLAN. Yes, ours and GAO. Mr. BROOKS. You don't have anyone assigned to you whose special PAGENO="0027" 23 job would be to examine with a critical view or examine in an objec- tive way? Mr. S0LAN. No, sir. Mr. BRooKs. You just check over your own books again? Is that essentially what they are doing? Mr. PAGLIN. I would say, Mr. Chairman, in that regard-I don't mean to correct the Chairman-but the Office of the Executive Direc- tor under the direct supervision of the Chairman has the general function such as you have described in terms of watching what is being done in the bureaus with respect to the expenditures. Mr. BROOKS. I understand the general assignment of the function. What I am trying to find out is, who does it and do you have some auditors and other people who report specifically? Mr. PAGLIN. We don't have. Mr. BROOKS. In some agencies they report to the chief keeper, you know, and sometimes they report directly to the Chairman with car- bon copies to the Executive Director or whatever the term is, and I would think that a couple of people with some real expertise out of your management team would certainly make a wise use of an objec- tive analysis of what you are doing. Let them get a little bit away from the forest and take a look at it. If they think some of your bureaus are doping off-I don't mean they are criminals, but ineffective or wasteful, or spending money for the wrong thing-they could give you and the Chairman an objective report of that without fear of recrimination. If they work for Mr. Solan, they're not likely to criticize him or he might transfer them. If they worked for me and they criticized me, I'd transfer them to Alaska, if they liked Florida. Mr. PAGLIN. Our Management Division has in fact carried on such activities in terms of examining the procedures of the bureaus and attempting, as you say, not from in amongst the trees, but looking at it from a broad objective point of view, and they have made some very useful-I believe the bureau chiefs would agree with me-some very useful suggestions as to procedural savings which have resulted in the actual saving of funds. Mr. BROOKS. And you think you have that partially covered iii your management information system, Mr. Chairman? Mr. HYDE. I would have to answer you this way. We do not have individuals designated as auditors for that purpose, but we do per- form this function to a very considerable extent. Only recently we made an examination in terms that we are using here today, we might call it an audit of the docket section. This was necessary because of the increasing backlog there. As a result of this examination or audit, changes were made. Simplifica- tions were introduced. We are getting more for our money, and we are getting our work done properly. Mr. BROOKS. That's good. You can see where my interest would lie n the general steady evaluation that was available to you without having it go through the channels and all the bureaus, because the peo- pie in the lower tiers in your accounting and management system would be a little bit reluctant to say that those directly above them had been sort of doping off. PAGENO="0028" 24 This is just normal. You'd like for them to have the opportunity to make the evaluation and report it to you, and then you and your Executive Director, if you feel that it is merited, are in a position to call the people in to examine it, to act on it without any fear of recrimination. They are not going to do anything to you. Mr. HYDE. Your point, of course, is a very good one. The inspection type of thing has been found necessary in administration in general and the idea of having a look by auditors, you might call them, to bring fresh viewpoints, is also a good management technique. Mr. BROOKS. That, as I understand it, is a protection for manage- ment. Mr. HYDE. Yes, indeed. Mr. BROOKS. Your Executive Director is a fine man, but if things go wrong, they don't blame him, they blame you. Mr. HYDE. I know. I was a disbursing officer myself once, and I know what it is to have to pay personally, reimburse the Government for charges paid without a valid claim or without proper support. Mr. BROOKS. That can happen. Mr. HYDE. Yes. F. AUTOMATIC DATA PROCESSING Mr. BROOKS. Now, in your automatic data processing do you have a central organization which is responsible for APP management in your agency? Mr. HYDE. We do. Mr. BROOKS. Will you describe the function? Mr. HYDE. Mr. Hand, who spoke a few minutes ago about the pro- graming of our computer is in charge of it, and we could ask him to explain this function a little further. Mr. BROOKS. Mr. Hand. Mr. HAND. We have a central service organization in the agency under the direction and coordination of the Executive Director. We call it Data Processing Division. We have 53 employees at the present time. We are doing work-as has come out at this hearing-across the board in the Commission. Mr. BROOKS. What are your own qualifications in ADP? Mr. HAND. Well, I presume you could say I'm a veteran in experi- ~ertce, and, off the record, agewise. I came out of college and went with IBM and was with them for about 7 years and then with another conventional punch card manufacturer. Then I went in the Navy as a systems punch card specialist, served with the Navy Comptroller after the war, and came with the FCC in 1960. So I picked up with the computer in 1951 when the first one was down there at Louisville, Ky.-the Univac. So this has been my background. Mr. BROOKS. I have just been reminded that we had a little signing ceremony-I think if you have been there since 1961- Mr. HAND. Sixty. Mr. BROOKS. You might have had a part in it. You had a sharing program you worked out? Mr. HYDE. Yes; with the Navy. Mr. BROOKS. With the Navy, which saved a half million dollars. Mr. HYDE. We were very pleased to respond to the Brooks bill. PAGENO="0029" 25 Mr. BROOKS. It saved a half million dollars? Mr. HYDE. Yes, sir. Mr. BROOKS. That's a couple of months' running money for a good television station. Mr. HAND. The Navy is using our computer 195 hours a month, third shift, and also some weekends. Mr. BROOKS. You haven't had any problems coordinating that pro- gram? It worked out pretty well? Mr. HAND. Yes. Mr. BROOKS. Well, this is certainly to your credit. Have you checked over the other programs on your payroll programing? Mr. HAND. Yes, sir. Mr. BRooKs. None of them fit, or did you find one that fit? Mr. HAND. They don't fit precisely, but the fundamentals that we saw being used in other agencies will apply to us, certainly. Mr. BROOKS. I was just thinking of saving you time in programing it if one of them fit your needs. Mr. HAND. It will, sir. Mr. BROOKS. And you have the coordinating facility to adapt it? Mr. HAND. No question but what the integrated plan we have seen can work. Mr. BROOKS. What do you consider to be the most pressing problem that you need to overcome to make a better and more efficient use of computers in your agency? Mr. HAND. I suppose I would be expected to say that programing talent shortage is always with us. It doesn't happen to be at the moment. So we have no problem there, and perhaps it's because we bring them in as trainees and move them up before they leave us to go to private industry or some other Government agency. Our real problem today is input, getting qualified card punch op- erators, and I am inclined to think it's-my personal feeling is it's because of the standards that we have in connection with this particular field, card punching. A card punch operator has no avenue for advance- ment, really, beyond a grade 3. This word has gotten around. So having no avenue for advancement, they look for other fields, such as the clerical field where they can get a grade 4 and possibly move up. This is our biggest problem, input, and maintaining a good force to meet all of our input commitments. Mr. BRooKs. What do you think would be a solution to that., Mr. Hand? I don't want to create any problem for you, but what do you think would be a method of solving your input manpower problem? Mr. HAND. We are looking for the day when our input doesn't have to be through key punching. I think everyone is. But if it's by typing, maybe there will be a shortage of typists, and I suppose there is a shortage now. I still feel that there should be a review of the standards for card punchers to try to raise them. It's very discouraging for a person who loves to punch cards, but can't get beyond a grade 3. Mr. BRooKs. You think maybe the Civil Service Commission or your own agency should evaluate the advisability of changing the maximum grade for card punch operators? PAGENO="0030" 26 Mr. HAND. We have stirred up this subject somewhat in our inter- agency ADP group. Mr. BROOKS. flow was it received when you threw that one at them? Mr. HAND. Strangely enough, there weren't many agencies that in- dicated they had this problem. Some did, and as I recall, it came out in testimony 2 years ago in this bommittee hearing. There were some problems there. Mr. MOORHEAD. Mr. Chairman. Mr. BRooKS. Mr. Moorhead. Mr. MOORHEAD. I am wondering what experience private industry has had in this situation? They must have to hire keypunch or card punch operators and pay them. Do they pay them a higher rate than grade 3, or have they solved the problem in other ways? Mr. HAND. I can't speak for private industry and what the average might be, sir, but as an example, last week I had a gentleman from one of these service organizations looking for work, card punching, programing, systems analysis and so forth, and he has over a hundred card punch operators, and I asked him what was the average grade, or what was the average rate of pay. It amounted to the top of a grade 4 in civil service. Now, perhaps another service organization wouldn't pay that much, but the only way he could provide the input services to his customers was to pay a higher wage scale. Mr. BROOKS. Well, it's an interesting problem. We have not run across this problem very often. It's primarily programing that people have felt was their greatest shortage. I have some specific questions which I'm sure you can answer as to how you acquire your equipment and what kind of evaluation you make prior to acquisition of it. You can submit those for the record. G. PERSONNEL 1~[ANAGEMENT Would you describe for the subcommittee the elements of your per- sonneA management program? Mr. HYDE. This function is carried out under the direction and supervision of Mr. Paglin. Mr. BROOKS. Very well. These general directors are busy-executive directors, general directors-they just run everything. You keep them pretty busy. Mr. HYDE. Yes. Well, I can tell you with the many communications policy problems the Chairman has at our place, the Executive Director is a necessary functionary. Mr. BRooKs. He has to be there to keep the store. Mr. H~rDE. He's got to be there to keep the store, right. Mr. PAGLIN. Mr. Chairman, we have a number of programs in our personnel managen~ent activit5~. One of the principal programs-- and I want to say parenthetically, for the particular details you need, Mr. Flint is here. He's the Chief of our Personnel Division. Mr. BRoo1~s. Pardon me. Have they considered a pretty compre- hensive-not comprehensive, but fairly extensh~e training program for people like card punch operators who are not hig~h1y skilled, but PAGENO="0031" 27 nevertheless are skilled? Mr. Fliut, have you done any recruiting on Mr. Hand~s operation along that line? Mr. FLINT. Yes, sir. We have. In the past, we have arranged for the training of programer and card punch operator trainees with com- puter equipment manufacturers such as IBM and Univac. We have also utilized available courses, both interagency and nongovernmental, to train FCC employees. As Mr. Hand has mentioned, recruitment is a problem on which we are constantly working. We try to provide both a job ladder and a steady input source for card punch operators to replace those who leave because they have essentially reached a point beyond which they cannot go and desire to start climbing a ladder in another skill area. Our job is to replace these people at the entry level and we have been working assiduously and constantly on this prob- lem. I think that at the moment, as Mr. Hand has indicated, we are in reasonably good shape. Mr. BROOKS. Go ahead, Mr. Paglin. Mr. PAGLIN. To keep the record logical, perhaps I could just ex- pound one bit in this particular aspect of our training program. We do attempt a well-rounded series of training programs, and it's done on the basis of planning-what the needs of the agency are-and conducting appropriate programs, either within the Commission or through arrangements with contractors or other agencies. We have conducted courses, for example, including orientation ses- sions, some individualized study programs in areas such as career English and shorthand and basic statistics. We have had some special activities such as a recent seminar on multichannel TV program dis- tribution by cable. We have done interagency training. We have participated, such as we could, in some of the Civil Service Commission programs such as the courses on the seminars that the Civil Service Commission con- ducts in the middle management programs, the PPBS seminars-a number of our operating people have taken those. Mr. BROOKS. You're riding them all? Mr. PAGLIN. Yes, we are trying our best in terms of training. Mr. BROOKS. And you are making a forecast for requirements and so forth? Mr. PAGLIN. Yes, we do. Mr. BROOKS. Has the Civil Service Commission had any particular comments to make about your personnel management practices? Mr. PAGLIN. I'm not aware of any direct and formal reports of the Civil Service Commission issued with respect to our program. Mr. FLINT. Shortly before I became the director of personnel there had been a Civil Service inspection. That was back in 1962. The sug- ge~tions they made for program improvement- Mr. BROOKS. First they suggested a new manager, and then they got you. Was that the first suggestion thatt they made? Mr. FLINT. I suspect that that might have been a result of it. We have been working within our resources on the weaknesses of the pro- gram that they mentioned, and we feel that since that point iii time wa have made great progress. Shortly after I arrived-in fact, I was hardly in the saddle-they came forward with a followup inspection, and, while we were not given PAGENO="0032" 28 directly the results of that followup inspection, my informal informa- tion was that they felt that things had improved and there had been something of a turn around since the 1962 inspection. We have heard nothing further since that time. Mr. BROOKS. Mr. Hyde, I'd like you to know Mrs. Heckler, from Massachusetts. Is there anything you want to add to that, Mr. Paglin? Mr. PAGLIN. Yes, very briefly, Mr. Chairman. In the interest of saving time, the particular type of preparation and activities in our personnel management can perhaps set forth if we could be afforded the opportunity when these written questions are submitted to us to fill in anything the committee wishes to have. In that connection, our personnel programs include the development of a position manage- ment system which we did in fiscal 1967, which I think this committee is familiar with, in order to provide the operating bureaus with policy guidance for the development of staffing plans and the implementation of such plans for the most effective operation of the bureaus. Mr. Flint has referred to our training program as have 1. We also have a fairly extensive program in employee-management relations. In each of these instances we follow Civil Service Commission regula- tions and the executive orders which are put out from time to time with respect to these particular activities. We have in this particular activity an employee representative's board. We have also attempted to comply with the requirements of the Civil Service Commission as to recognition of employee organizations. We do have two of the employee organizations. We have granted exclusive recognition to the Allied Reproduction & Trades Union to represent our employees in the printing and reproduction branch; the National Association of Government Employees represents our non- supervisory and nonprofessional employees at our monitoring station in Alaska; and at the present time the American Federation of Gov- ernment Employees has been permitted to conduct an organizing drive in our Washington office. We do afford the usual assistance and service in employee relations to the employees of the Commission as normally most agencies do, We have a fairly good, I think, program in the career management field. We attempt to assist in the development of a management system both on an individual and professional basis to see to it that our employees are able to advance as far as their own capabilities will permit. In the same regard, for example, our merit promotion plan is another device we have in this field. Mr. BROOKS. Mr. Paglin, give us a rundown on those activities be- cause personnel management is acquisition, training, upgrading, keep- ing them active, letting them make progress, make more money, more responsibility is an important part of every agency's work. Mr. PAGLIN. It's the people that make it tick. Mr. BROOKS. They are the ones who are running it. It's a steady problem. You know you're never going to get to the top of that one but you have to keel) working at this all the time. Mr. HYDE. We will be happy to submit that. Mr. BROOKS. If you will outline that for us we will put it in. I think it is helpful and I think it has been a little better stated than in these other hearings. PAGENO="0033" 29 Mr. HYDE. We will welcome the opportunity. (The information to b~ supplied is in app. C.) Mr. BROOKS. Good. It is a small agency and you are trying to do everything possible for them. You are trying to make the 3's-upgrade them to the 4's, and the 15's want to be 17's. Incidentally, what is the average grade level in the~- Mr. PAGLIN. The average grade as of June 30, 1967, M". Chairman, the average grade for the 1,463 classification employees was 8.19. That was the average grade for our Classification Act employees. Mr. BROOKS. That is pretty good, you just turned right to it. H. GENERAL ACCOUNTING OFFICE REPORTS Has the General Accounting Office issued any auditing reports of the overall operation of the FCC, not directed at the functional pro- gram but rather management and administration of the agency ~ Mr. HmE. No. There have been two preliminary reports but no report such as you inquired about. PART 2-PROGRAM REVIEW Mr. BROOKS. Turning now to your program breakdown, I would appreciate a brief explanation on what each of the programs is and how it is performed and I would like at this time without objection enter into the record exhibits E, F, G, H, I, J, and K, to be inserted before the discussion of each program. You may, sir, want to have the people that are directly concerned with these programs present them. If they could limit it to a-they can revise-I do not want it extended too long, but a short concise analysis of what they are doing would be helpful. Mr. HYDE. Let me give you what appears to be or what are the major programs of the agency and as I come to them if it becomes necessary to obtain more detail we will call in the specialists. A. PROGRAM Il-RESEARCH AND PLANNING IN COMMUNICATIONS TECHNOLOGY The Commission gets more notice for its broadcast function, I sup- pose, than for other matters. Equal time, section 315-off the record. (Discussion off the record.) ~6 51-68-~5 PAGENO="0034" 30 (Exhibit E follows:) EXHIBIT E-FACT SHEET-TRESEARCH ANB PLANNING IN COMMUNICATIONS TECHNOLOGY DEPARTMENT OR AGENCY PROGRAM SUBPROGRAM Research & Planning in Corn- 100 FCC munications Tec~moIo~y CODE CODE CODE 200 ANALYSIS AND CONTROL CODES 300 4 FISCAL YRAR Usobligated Appeopeistios or Cuesent Total Totol Obligated Caeeyaoer Yss~ Request Acailable or Eopoadsd 300 "In house" inputs _________________ __________ 310 Personnel: 311 Comp. _______________ _________ 93~,5~5 312 Benefits 313 Travel ________________ ~ 320 Expenses: 321 - Communications _________________ _________________ ________~~_ 322 Transportation _________________ _________________ 023 Printing _______________ _______________ 024 Supplies and Consum- able Materials 080 Capital Equipment _________________ _________________ 540 Land and Structures 241 Additional Investment - __________________ _______________ 542 Rents 850 Total - ____________ - 4100 Funds distributed _____________ ________________ 4110 Contracts _______________ ______________ 6i0,00Q 620 Grants ________________ 4130 Loans _______________ 640 Benefito __________________ 650 Other __________________ 4160 Total _____________ _____________ 100 Total Peior Fiscal Yeas 000 Input-output ratio . 810 1. Input ______________ - _____________ 811 1. Output ______________ _____________ 820 2. Input ______________ _____________ 821 2. Output ______________ - _____________ 830 3. Input ______________ - _____________ 881 3. Output ______________ _____________ 340 4.Input ______________ _____________ 841 4. Output ______________ - _____________ 850 . Input ______________ __________ 851 . Output _____________ ____________ 860 . Input ______________ - _____________ 865 - Output 870 . Input 871 . Output 880 . Input ______________ - _____________ 881 8. Output ______________ - _____________ Feinted foe on of Russo Goseenineot Aeticitie, Ssbeoneolttec, Cholenso lock Spook, PAGENO="0035" 31 PROGRAM II-RESRARCH AND PLANNING IN COMMUNICATIONS TECHNOLOGY STATUTORY OR ADMINISTRATIVE AUTHORITY The Communications Act of 1934, as amended; the Oom~mun4oations Satellite Act of 1962 and treaties and executive agreements to whi~h the United States is a party. NATURE OF PROGRAM AND BENEFITS This program has a dual purpose-nttemp'tin'g to solve today's communication problems while preparing to deal with new problems which may confront us in the fifture. The program is divided into three areas: 1. ~pectrum planning and research.-Irntndes studies aimed at optimum utili- zation of available spectrum space. ~2. Frequency management.-Involveis the equitable `dtatribu'tion of the radio spectrum to obtain optimum use with minimum interference. Phi~ is accom- plislied through international allocations and agreements effected by means of international conferences `and `meetings, suich as the World AdminiStrative Radio Conference (Geneva, 1967) to revise the Radio Regulations `of the International Tele~oanrtunioation Union applicable to the Maritime Mobile Services. The responsibility for frequency management is shared at the na'tion'si level between the President and the FCC. The President has delegated hi's authority, through the Office of Emergency Planning, to the Director of Telecommunica- tions Management (DTM). Some frequenicy hands are `designated for exclusive use by the Federal Government, others for exclusive use by FCC licensees, and a nun~ber `of bands are shared. Elaborate procedures have been established to coordinate individual assignments where this i's n6cessa'ry to minimize the prob- ability of harmful interference. In addition, this phase of the program assumes responsibility for the main- tenance of frequency assignment files. By meanS of these list's it i's possible to estimate `the degree of channel loading and to locate `staitions ~aus&ng interference. These lists also provide information concerning compatibility of new frequency assignment requests With operations of existing station's. All assignments for which international recognition is desired or which are capable `of causing in- ternational interference are notified to the International Frequency Registra- tion Board in Geneva, which, after review as appropriate, arranges for inter- national publication of the `data. Effective frequency management c'an provide the general public with improved police and fire protection, better ~ommun'ioati'on and transpurtation services at lower prices, more efficient industrial proccsses and b'u'sines's service's and the availability of a variety of broadcast services for everyone. 3. Uo~nmunications teohnology.-Covers methodology, testing, and investiga- tion of all phases of communications and equipment as well as spectrum and specialized studies. The ultima'te test of this element is the benefits it brings to the public. With the increasing reliance on expanded communications-ranging from public safety to home entertainment-communications technology must answer the demands of a growing population and an expanding economy. Faced with this multiplicity of requirements, the Commission must apply and sometimes stimulate improved technology and more efficient concepts of spectrum utiliza- tion if the people are to be assured of communications geared to the needs of today's society. Illustrative of studies conducted in this area are: Reducing channel width in the 450-470 MHz land mobile band to double the number of channels in that band; developing single Sideband standards in the Marine Radio Service to reduce redundant information and increase the number of channels; and study of interference between space communications systems and microwave relay stations. Also, a joint Government-industry group, directed by the FCC, is studying the feasibility of channel sharing `of VHF-TV channels with the Land Mobile Radio Services. Field data now are `being `analyzed, and r~1ated laboratory tests under controlled conditionis are in progress. A recently completed `staff study of the use of UHF-TV channels by the Land Mobile Radio Services will provide ba'ckground for proposed rulemaking. The problem is one of balancing equities between the land mobile `and broadcasting services. PAGENO="0036" 32 The Experimental Radio Service provides lh~enses for basic research in radii& and electronics as `well as the development of huproved radio transmitters and new radioconimunication systems not provided for on a regular basis In other parts of the Commission's rules. The Commission's type approval program, detern~ining that equipment opec- ates within prcserlbed limits, is handled by the FCC Laboratory. Our type acceptance program, based on evaluation of manufacturers' test data, deter- mines whether other types of equipment meet FCC standards. Our rules further provide that certain nonlicensed equipment must operate withoi~t generating harmfuLl interiferanqe. This requires that the manufadturer file a certificate with the Oommiss&on stating that the equipment he makes operates within prescribed limits. Some ocf the benefits of these procedures are: redixction in application processing time, minimization of complaints of interference, and eliminating the necessity of licensir~g industrial, scientific, medical equipment and certain other equipment like very low power walkie-talkies and radii~ toys. Name of the official having direct operational responsibility over the pro- gram is William H. Watkins, Ohief Engineer. Mr. HYDE. I have some suggestions for amendments to section 315. They have not done too well with them, but broadcasting is' a major interest with us. It includes all regulatory activities related to regulat- ing the broadcasting programs intended primarily for reception by the general public. This includes AM, FM, TV, educational broadcasts and so forth. In the past we have had tremendous issues to resolve, such as the matter of color standards, fairness doctrine, multiple ownership. There is no end of issues in the broadcast field. Mr. BROOKS. Mr. Chairman, much has been said in recent years about TV content, program content, the extent of FCC powers and the responsibilities in this area. Would you comment briefly on this and perhaps furnish a more detailed statement for the record? Mr. HYDE. Yes. Our main regulatory effort is expressed in such policy statements as the fairness doctrine and the statement on pro- graming which was issued in 1960. These will be of interest to you. During this past year we have gone over the application forms, tim forms submitted by an applicant who wishes to build a station or to acquire one. Mr. BROOKS. I have a limited interest in what they say before they get it. It is what they do after they get it that really `has bearing on the public interest in my judgment. Mr. HYDE. The Commission requires of an applicant that they make a study of their community and make a presentation of what they pro- pose to do to sati~fy the interests that they have discovered as a result of their survey and then at the time of renewal their performance is checked in genertd against the presentations they made to the Corn-' mission when `they applied. Mr. BRooKs. Have you ever failed to renew one of those licenses be- cause they just ran a sorry station and didn't render any public service? Mr. HYDE. No. There have been many instances where licenses have been refused or where there have been revocations. Usually these revo- cations are not based upon a finding that goes to cultural quality of the program. They usually result from violation of rules or misrepresen- tations to the Commission. This is an area where the Commission must direct attention, to the overall public interest. It must see that stations are operated in the public interest but still must no.t offend section 326, which prohibits the Commission from censoring programs. PAGENO="0037" 3.3 Mr. BROOKS. If they ran every ~ years like I do, the real opportunity to lose that licetise would upgrade, perhaps, their devotion to duty. Mr. limE. Well, they are under continuing public inspection and examination. We do try to-~-~- Mr. BRooKs. What can the public do about them actually? Turn them off like the telephone service-you get mad at the telephone company and you tell theth to take it out Where do you go from there ~ Mr. Hma. Unlike the telephone service, this is a competitive in.. dustry and as a matter of fact there are many choices of program material in most every community and this gives the public an op- portunity to tune into a different program, and their influence is felt. There are some very significant policy statements by the Commission and with your permission I would supply that to you. (The information to be supplied follows. More detailed materials have been sifbmitted for the subcommittee files.) CRITERIA USED IN EVALUATING APPLICATIONS FOR NEW STATIONS 1. Parties seeking to become licensees of broadcast stations must show that they are legally, financially and otherwise qualified to become licensees and that their proposed programing will serve the needs and interests of their service area. 2. The Commission first determines whether an applicant is legally and other- wise qualified, e.g., in the ease of an Individual, whether he is an adult citizen of the United States, whether he has been convicted of a serious crime or a violation of law which bears on his character qualifications; in the case of a partnership or corporate applicant, the applicant's ability to do ~usiness in the proposed locale, whether it has a record of law violations which bears on its qualifications to be a licensee. If the applicant is already the licensee of an existing station, the Commission examines his record to see if his operation has met Commission standards. The nature of the ownership and control of the applicant must also be examined to establish compliance with the Commission's multiple ownership rules. 47 CFR 73.35,47 CFR 73.240 and 47 CFR 73.636. 3. All applicants must establish that they have sufficient funds available to construct and operate the proposed station for 1 year without revenue. In the event they cannot show sufficient funds to absorb a year's operating costs without reliance on expected revenue, they are given the opportunity of proving that adequate revenue is available. 4. The selection of FM and TV frequencies is governed by a table of assignments which tells a~pllcants which channels can be used in a given locale. Since there is no table for AM radio, the applicant must search for a frequency on which to operate without causing or receiving interference to an extent defined by the Commission's rules.1 CRITERIA USED IN EVALUATING RENEWAL APPLICATIONS 5. An examination of the station's financial situation is made at the time Its renewal application is filed for the purpose of determining whether the applicant Is financially able to continue the operation of the station. - 6. Prior to renewal time the technical operation of a cross section of the sta- tions is inspected by the Commission's Field Engineering Bureau. Where the inspection discloses operation contrary to the requirements of the Commission's rules, notices of the violation are sent to the licensee and he is required to take the necessary corrective action without delay. In addition each licensee must sub- mit at renewal time its transmitter logs for a composite week. Where the logs reflect that the technical operation of the station Is substandard or is not in accordance with the terms of the license, the license is not renewed until com- pliance is achieved. Continued failure to meet technical standards will result in a hearing on the renewal application. ~The criteria usea in evaluating programing and commercial proposals are dis~cusse~ under the processing of renewal applications. PAGENO="0038" 34 7. The basic programing responsibility of an applicant is to show that he has made a good faith effort to determine the needs and interests of the public in his service area and to provide programing to meet those needs and interests. Applicants are required to provide full information on (1) the steps they have taken to inform themselves of the needs and interests of the area; (Ii) the sug- gestions they have received; (iii) their evaluation of those suggestions; (iv) the programing proposed to meet the community needs as they have been evaluated. Applicants are also required to list typical and illustrative programs designed to meet community needs and to set out a specific breakdown of the amount of time to be devoted to news, public affairs and other programing exclusive of entertainment and sports. Since proposed programing and com- mercial plans constitute representations on which the Commission relies in deciding whether the initial grant of an application is in the public interest, a su~bstantial departure from these representations may require a hearing on the application to renew the license of the station. 8. The past and proposed commercial practices of applicants are also reviewed. Where a licensee proposes a normally applicable commercial ceiling higher than the general industry norm and fails to make a satisfactory showing of why such a proposal is consonant with the licensee's duty to serve the public's needs and interests, the application may be set for hearing or the licensee will be asked to submit a report, after the ensuing 18 months, relating to the amount of com- mercial matter froadcast in excess of the industry norm during that period, and setting out any complaints received on `his commercial practices. 9. The complaint file for each station is examined at renewal time and no license is renewed, without further proceedings, where the file shows that there are unresolved substantial complaints outstanding against a particular licensee. Files are also checked for evidence of operation contrary to the public interest such as the use of fraudulent a~lvertising matter, fraudulent promotions and double-billing. A check is also made to ~ee that each station has filed an ac- ceptable ownership and financial report. Applications for renewal are set for hearing for a variety of reasons, e.g., for continued operation in violation of technical rules, for serious misrepresentations of fact, for failure to carry out representations as to programing and commercial service, for fraudulent contests. Mr. BROOKS. We would like to have them. And, Mr. Chairman, could we get a brief statement from the-I guess, your research and planning? Who is handling that? Would you like for him to make a brief statement on that? Mr. Hyrm. We have here Mr. William Watkins, our chief engineer and perhaps you would like `to hear from him briefly now and a further statement, if you wish, in writing. Mr. BROOKS. That's right. And then we will go through these major program areas if we could. We would like just a brief analysis of your management, how many people in that agency, et cetera. Mr. WATKINS. Thank you, Mr. Chairman. I have no `prepared state- ment. I would like to make one point in clarification of some earlier discussion. In looking at the Commission's exhibit B, the FCC organization chart, you earlier noted that the office of the chief engineer has a research division, and identified that as being perhaps equivalent to the research and planning in communications technology, which is our exhibit F, on which you just now asked for comment. In fact, Mr. Chairman, the entire office of the chief engineer and some of the planning specialists in the other bureaus are all involved in this general program. IResearch and planning in communications technology is one of the phrases we have picked in connection with working out the PPB program. Within the Office of the Chief Engineer, we have activities which deal with transmitter `type acceptance and equipment type approval in PAGENO="0039" 35 order to facilitate its licensing or use on a mass basis. We have responsibility for administration of what we call the experimental radio services. This is a group of licensees who are usually manu- facturers, large and small, engaged in research of various kinds. They need these special licenses because they are experimenting with various uses of radio, or need to use radio in experiments of other kinds. We have the Commission's laboratory activity in the Office of the Chief Engineer and we have a frequency allocation activity which is referred to in our exhibits as frequency management. Frequency management in the United States is divided between the President on the one hand and the FCC on the other under section 305 of the Communications Act. The President authorizes the executive branch operations in the radio spectrum and the FCC authorizes everything else. Mr. BROOKS. How many people are involved with you in that re- search and planning section Mr. WATKINS. Within the office of the chief engineer the figure is a total of 88, of whom I believe 49, at last count, are professional engineers. The others are support personnel or technicians, clerks, and secretaries. Mr. BRooKs. And are there some others coordinated with that activity in other bureaus? Mr. WATKINS. That's right. It depends on how one chooses to al- locate time to various activities and projects. Mr. HYDE. Mr. Chairman, I think a good example of this inter- bureau or interoffice planning is the study that is being made of use of frequencies for land mthile radio services. Since this has a possibility of using frequencies now used for broadcasting, there are broadcast engineers as well as engineers from the office of the chief engineer who have been engaged in that. Mr. BROOKS. Good. Are you doing any work on reallocation of the radio frequency spectrum? Mr. WATKINS. It is a continuing process, Mr. Chairman. Mrs. HECKLER. Mr. Chairman. Mr. BROOKS. Mrs. Heckler. Mrs. HECKLER. I am interested particularly in this frequency man- agement. I wondered what your criteria are for establishing broad- casting hours and what the procedures are for the expansion of frequency or broadcast hours, let's say, within a certain area? Mr. WATKINS. I think Chairman Hyde or the Chief of the Broad- cast Bureau, Mr. Smith - Mrs. HECKLER. If that is coming in later I will postpone the question. Mr. HYDE. You have asked a question that is basic in the adminis- tration of the Communications Act. One of the basic functions of the Commission is to allocate frequencies for the different classes of services and then to provide for the licensing of stations within those services. We have to find a-make a judgment, takinig into considera- tion such things as safety. This is one of the first and compelling- Mrs. HEOKLER. `Safety? Mr. HYDE. Safety services. This would be used where wire cannot perform the function. In any allocation proceeding the Commission PAGENO="0040" 36 is required to make a judgment as as what would be an appropriate allocation for broadcasting or safety, taking into consideration. other demands for frequencies. There will be social factors, there will be economic factors, there will be engineering factors, there will be just a cross section of all of the elements that go into a judgment as to what is needed in the public interest. Our direction from the Congress, as you know, is public interest,, convenience, and necessity. Mrs. HECKLER. Now, Mr. Hyde, does one department do this? Wh& makes the final decision on this allocation of frequency? Mr. HYDE. The Cormnissioners must make this decision. Our chief adviser on this would be the chief engineer, but we would also find rele.~ vant and necessary the advice of engineers from the other bureaus. When there is a proposal to make some change which may have con- sequences in several bureaus, there will ordinarily be a public notice,. opportunity for interested parties from the public and industry to comment. But when the moment of truth comes, the Commission must make a decision. We will have the advice of Mr. Watkins; we will also have the advice of economic experts in the Commission. It becomes~ a Commission-wide decision. Mrs. HECKLER. Do you have an actual procedure whereby a radio station would apply for a change in allocation? Mr. HYDE. Yes. We have extensive rules for each class of station.. There are rules for FM, for instance. In that area we have found it ap- propriate to have an allocation table and a person wishing to apply for a permi't~ to construct an FM station would consult that table and find out if there is an opportunity for him. There are opportunities in many cities, but in the larger cities the frequency assignments have been pretty well taken up by applicants. Mr. BROOKS.. Mr. Chairman, let me ask one question. It is my under- standing that the basic frequency allocations were made in 1946 and~ you have been studying it ever since then and there have not been a whole lot of changes. Mr. HYDE. This is a statement frequently made, that the Com-~ mission made an allocation in 1945 or 1946 and this has remained constant. There have been many changes. Mr. BROOKS. Significant changes or just minor? Mr. HYDE. Very substantial changes; and there has been an exten- sion of the frontier. Mr. BROOKS. There have been changes? Mr. HYDE. I think perhaps we ought to give you a summary of them.. Mr. BROOKS. Why don't you do that for the record, a little sum~ mary of what the situation of allocation was in 1946 and a basic' analysis of the changes made, and give us some significance of those changes. I do not want just the technological background but the number of people involved, the number of stations involved, potential customers involved, or the load-the impact it has on `the public and so on. it is a relevant thing. Mr. HYDE. It is a highly relevant one and I rather welcome the opportunity to present a statement on it `because frequently the corn- plaint is made that the Commission has not changed the allocation made in 1945. (The information requested is in Appendix B.) PAGENO="0041" 37 Mr. BRooKs. I would like to see that concisely and with relevance. We may want to talk about that later. Mrs. HECKLER. And would you include a statement of the procedures for reconsideration of allocation in an area? Mr. HYDE. A petition can be filed~ ~at~a~y time for a rulemaking proposing a change. We would be obliged, under the Administration Procedure Act of 1946 to examine it and make some judgment upon it. Mrs. HECKLER. What factors would you consider in making that decision? Mr. HYDE. One very important factor, would the proposed change be conducive toward an equitable distribution of facilities-one of the basic policy factors-equitable distribution of facilities as between States and. communities. Mrs. HECKLER. I still do not know what you mean. Mr. HYDE. Fair and equitable and still give appropriate attention to- Mrs. HECKLER. I am particularly interested because in a recent disaster area in my district the local radio station, whidh was allowed to broadcast only until a certain hour, was on the air all night. The town-city of roughly 70,000 people-was tuned in to this station, and the next night there was such a feeling of emptiness because the station was not permitted `to be on. Everyone in the city discussed this and people were saying, "Isn't it unfortunate that we are not able to get the news and be informed in the evening." This raises a question of how would a city provide for better distribution. Mr. HYDE. May I make `just one brief observation about this prob- lem. We have 1,800 or 1,900 daytime-only stations in the AM band. The reason they are limited to daytime is that engineers found they could operate during these hours without causing untoward interference with previous broadcasting stations, so the facilities would be avail- able only for daytime. We do have an allocation for FM and there are many communities where FM assignments are available and where they could provide both day and night service, and, normally, an FM channel will give better service-a more uniform signal. For instance, the nighttime service area will correspond pretty closely to the daytime one. However, interest in this area has not been nearly as great as in AM because we have the distribution of sets for AM reception, the small transistor ones and so forth. There is an increasing interest in FM now. Channels which have gone begging for a long time are `being sought now. More set's are being made for FM reception, including automobile sets; and I do believe, although I do not have in mind the details of this particular community, that the probabilities are that there would be a way to resolve this problem by FM. I would be glad to have somebody look into it. Mrs. HECKLER. It would not help in this situation but I would be glad to talk about it. B. PROGRAM 111-BROADCAST Mr. BROOKS. Could we get Mr. Smith to give us a rundown on his broadcast bureau, what he does, and how many people? 96-501-68---6 PAGENO="0042" 38 (Exhibit F follows:) EXHIBIT F-FACT SHEET-BROADCAST PROGRAM DEPARTMENT OR AGENCY PROGRAM SUBPROGRAM 200 FCC Broadcast CODE CODE CODE 200 ANALYSIS AND CONTROIJ CODES 800 455 FISCAL YEAR tloobligatscl Appropriatim cc Ow~reat ToRI I Tott~ Obligated Carryover Yecr Reqoeot Available Eopmded 000 "In house" injiuts _______________ 010 Personnel: liii Comp~ ______________ 012 Benefits ________________ .3~_____ - 018 Travel 520 Expepses: 021 Communications 522 Transportation _________________ 82~ Printing _______________ _______________ _3~5QQ _________________ 024 Supplies and Consum- able Materials ________________ ________________ 9 _____________ 014) Capital Equipment _______________ 040 Land and St)uctures 541 - Additional Investment 542 Rents 550 Total _____________ _____________ __..~.ii~iii 600 Funds distributed ________________ 610 Contracts 620 Grants 680 Loans 640 Benefits - 650 Other 660 Total 700 Total Prior Fiscal Year 800 Input-output ratio _____________ I - ________ 810 1.Input - .811 1. Output `--` - 820 2. Input _____________ 821 2. Output __________ 880 3. Input _____________ .811 3. Output _____________ 840 4. Input _____________ 841 4. Output _____________ 850 5. Input _____________ 851 5. Output - 860 6. Input ____________ 861 6. Output _____________ 870 7. Input _____________ - _____________ - _____________ 871 7. Output ____________ - ____________ - - 880 8. Input _____________ _____________ - _____________ ________ - 881 8. Output I _____________ _____________ ___________ Printed fop too of Moses tlsceenmeut Activitit, Subsonscift,,, Chaka,s lack Brook, PROGRAM III: BROADCAST statutory authority.-Communjcatjons Act of 1934, as amended. 1Va~tnre of program and benefits-The broadcast program, ~n very general terms, consists of the licensing and regulatory functions of broadcasting and associated auxiliary services. Broadcasting includes two aural services (standard or AM broadcasting and frequency modulation or FM broadcasting) and visual service (tel~°vision). Within these principal services are found the several related auxiliary services. The purposes of regulation of radio and television transmissions for reception by the general public is to make available to all people in the United States~ PAGENO="0043" 39 interference-free aural and visual service with programs intended to setve ti~ie ieeds and interests of the public. Whenever possible, more than one service is provided in order to enhance competition and permit a wider choice of programs. TELEVISION SERViCES Today there are over 1,000 authorized television stations including 824 coin- niercial stations and 185 educational stations; 594 stations are authorized to operate in the very-high-frequency portion of the spetcrum and 415 stations in the pitrahigh portion of the spectrum. Ninety-fOur percent of all homes have tele- vision sets and almost one out of every five homes has a color TV set. In the average home, television is viewed about 51/2 hours a day. Some individual tele- vision programs of major interest or importance are viewed by as many as 60 million persons. There are about 140 of the 185 authorized educational television stations on the air. These stations cover areas containing about two-thirds of of the population. About 12 to 15 million students in more than 2,000 schools receive part of their instuction through educational television stations. The edu- cational television stations also provide for home audiences a variety of pro- grams seldom available on commercial television. A new service recently au- thorized by the Commission and rapidly growing is the instructional television fixed service (ITFS), which provides for point-to-point transmission of television rather than general broadcasting to homes. This service permits school systems to transmit and receive simultaneously a number of television programs. By thus providing greater flexibility ITFS should increase the in-school use of instruc- tional television. AURAL SERVICE5 In the aural broadcast service we have authorized some 4,220 standard (AM) broadcast stations and some 2,050 frequency modulation (FM) broadcast sta- tions. Of the FM stations, 345 are authorized to operate as educational stations. With development of small portable receivers the aural broadcast service can now be received in practically every situation the public finds itself-at home, in the office, in the automobile, at the beach, and while walking. Today virtually every home has at least one radio receiver and the average family has four. Radio, together with television, has become the principal sources of news, information, and entertainment for the American public. CONTINUING BROA1)CAST ACTIVITIES Fundamental to all other functions is the continued processing of applications for AM, FM, TV, and associated auxiliary services. The latter mentioned serv~ ices include: international, relay and studio link, developmental, experimental, and remote pickup. The estimated fiscal year 1968 output for application process- ing is in excess of 19,500. Continuing efforts are made by rulemaking procedures to aid in the orderly development of the several broadcast services, especially frequency modulation stations (FM), ultra-high-frequency television stations (UHF), and noncom- mercial educational stations-both aural and television. Special emphasis has been placed on these particular classes of stations because the full potential of these services has not yet been achieved. Continuing studies are being made of developments and trends in network broadcasting. Studies and negotiations are underway at the present time in connection with international commitments and treaty obligations. The United States and Canada are presently engaged in negotiating modified agreements covering FM and television services. The United States and Mexico are presently negotiating a modified standard broadcast agreement. Preliminary discussions have been held looking toward negotiations between the United States and Mexico for an agreement on FM services. Name of the official having direct operational responsibility over the program is George S. Smith, Chief, Broadcast Bureau. Mr. IImu. We have the Chief, Mr. George Smith. Mr. BROOKS. He can do it concisely. If he is just an ordinary man it would take him 10 minutes, but as smart as he is he can take it in three. Mr. Hi'rn~. I think he can do it in three, if you say so. PAGENO="0044" 40 Mr. SMrni. I think I get the point. I have a staff approved plan of 251 people in the Broadcast Bureau but I have never reached that plateau. I am below that all the time. Mr. BROOKS. At what? Mr. SMITH. We are at 248. This is based on last year's level, not the current plan. The Bureau bassicaily is an organization that acts on applications. We receive applications renewals, transfers, assignment applications for new stations, for major changes as well as minor changes, for all of the broadcast services, which includes AM, FM, television and the si~bsidiary services. I might just drop in the record the fact that in AM we have now approximately 4~200 stations. including daytime stations. We have 2,050 FM stations of which 345 are educational. We have over 1,000 authorized television stations at the present time which may be broken down as 824 commercial, 185 educationals. I would rather use my remaining minute to answer any questions that the chairman may have. Mr. BROOKS. Well, I think you have done well. Mrs. Heckler, do you have any questions of Mr. Smith? Mrs. HECKLER. I just wondered how many renewal hearings you have a year? Mr. SMrm. I just happen to have that information with me. For this year, we will have had 110 hearings on-I would like to break it down as between AM and FM and television-93 hearings on appli-. cations for new stations and major changes, 12 on renewal of license applications, and two on assignment and transfers. On FM, in answering your question, we will have one hearing on a renewal application, and 70 hearings on applications for new and major changes. In television, we will have 59 hearings on new and major changes, with three on license renewals. Mrs. HECKLER. And how many have you turned down in the last 5 years in the renewal applications? Mr. SMITH. I just would not like to guess at that. I would like to find out for you. 0. PROGRAM IY-COMMON CARRIER Mr. BROOKS. Thank you very much. Mr. Chairma~i, who do you have in charge of your Common Carrier Division? PAGENO="0045" 41 `(Exhibit G follows:) EXHIBIT G-FACT SHEET-COMMON CARRIER PROGRAM DEPARTMENT OR AGENCY PROGRAM SUBPkOGRAM 100 FCC Common Carrier CODE CODE CODE 200 ANALYSIS AND CONTROL CODES 800 400 - _______________ - FISCAL YEAR SYsobligateil Appro5elotiso or Cucecat Tetal Total Obligated Carsyosse Ys~rRnqesat Aeoilobla oc ~spea4sd 000 "In house" inputs _________________ _________________ _________________ _________________ 010 Personnel: _________________ _________________ _________________ __________________ 511 Comp. ________________ ________________ _________________ 512 Benefits _______________ _______________ i55,38l~ 518 Travel ________________ ________________ 17, Q00 _________________ 520 Expenses: _________________ _________________ _________________ _________________ 521 Communications _______________ _______________ 23,000 ________________ 522 Transportation ________________ ________________ 500 _________________ 528 Printing _______________ _______________ 11,333 _______________ 524 Supplies and Consum- able Materials _________________ _________________ _________________ __________________ 530 Capital Equipment _________________ _________________ _________________ _________________ 540 Land and Structures _________________ 6,100 541 Additional Investment - 542 Rents _________________ _________________ _________________ __________________ 550 Total __________ ______________ 2,238,696 ______________ 600 Funds distributed ________________ ________________ ________________ _________________ G1Q Contracts _________________ _________________ _________________ __________________ 620 Grants _________________ _________________ _________________ ________________ 630 Loans _________________ _________________ _________________ _________________ 640 Benefits _________________ _________________ _________________ _________________ 650 Other -- _________________ _________________ __________________ 660 Total _________________ _________________ _________________ _________________ ~70O Total _____________ _____________ _____________ ______________ Price Fiscal Year 800 input-output ratio ______________ 81Q Input -~ __________ __________ __________ -~ 811 1,Output - _____________ - _____________ - -- 82~ 1. Input - 821. 2. Output ______________ ______________ ______________ ______________ 830 3. Input ______________ ______________ ______________ ______________ 831 3~ Output _____________ _____________ - _____________ _____________ 840 4. Input ______________ ______________ ______________ ______________ 841 4. Output ______________ ______________ ______________ ______________ 850 5. Input ______________ ______________ - ______________ - 851 5. Output ______________ ______________ ____________ ______________ 860 6. Input ______________ - ~ - * 861 6.Output ______________ ______________ ______________ 870 7. Input ______________ - ______________ - 871 7.Output _____________ - _____________ - ________ - _____________ 8808.Input -~ ______ _____ ______ - ______ 881 8.Output ____________ - ____________ - -~ - ~ - Pristsd for sse stlsosss GnyersmssS Asticitbes 5sb,stsa~lttss, C1oirssss JarkEenob, 55531-b a~g PAGENO="0046" 42 PROGRAM 1V COMMON CARRIER statutory authority-Communications Act of 1934, as amended, and the Communications Satellite Act of 19~2. Nature of program and beneflts.-Communications services furnished for hire by common carriers to the public by use of wire, radio, or satellite facilities. Regulatory activities include: regulation of rates, services, and accounting practices of common carriers prescription of depreciation rates; licensing and certification of facilities; preparation for and participation in international telecommunications conferences. The outputs of this program are basically the establishment and maintenance of (1) adequate services and facilities to meet all reasonable demands for ex- peditious and efficiept communication, and for the purpose of national defense; and (2) just, reasonable, and nondiscriminatory communication rates, classifica- tions, regulations, and practices. Specific examples of regulatory activities which have resulted or are expected to result in direct be~iefit to the public include: Completion of the first phase of the Commission's inquiry into the Bell System's interstate telephone rates resulting in total savings in long distance tolls for telephone users estimated at $120 million per year. The second phase of the proceeding is now in progress, directed toward the establishment of just, rea- sonable, and nondiscriminatory rate levels for the principal individual classes of service. Savings of $1.4 million are anticipated as a result of establishment of "after 8" rates and evening charges for station4o-station calls to Alaska from the other continental States. Recently revised rate structures for wide area telephone service (WATS) are expected to result in savings of $5.6 million. An inquiry into the regulatory and policy problems presented by the inter- dependence of computer communication services and facilities is now in progress. The growing convergence of computers and communications has given rise to a number of regulatory and policy questions within the purview of the Com- munications Act. These questions require timely and informed resolution by the Commission in order to facilitate the orderly development of the computer industry and promote the application of its technologies in such fashion as to serve the needs of the public effectively, efficiently, and economically. The Commission has initiated investigations into telephone company charges for channel service to CATV operators. This inquiry is expected to establish the legitimate role for communications common carriers in the developing CATY and related wired variety of wired communications services to the home. The Commission has before it several cases involving tariff restrictions on the subscriber's use of attachments, or devices not furnished by the carrier; inter- connection of private systems with those of communications common carriers, and the entry of competing common carriers. The rulings in these cases could significantly affect the structure of the industry and the degree of competition that is to exist in the supply of equipment and the provision of communication services. The Commission, after extensive informal inquiry and study, has advised the American Telephone & Telegraph Co. that it will entertain an application for a fifth trans-Atlantic voice cable, subject to certain conditions, including the requirement that rates shall be reduced by at least 25 percent upon placing the cable in service. Over 700 projects are authorized by the Commission annually to extend or supplement wire and microwave radio facilities. These actions lead to improved and expanded telecommunication service, and cost benefits flowing from econo- mies of scale and application of new technologies. Name of the official having direct operational responsibility over the program is Bernard Strassburg, Chief, Common Carrier Bureau. Mr. HYDE. Mr. Strassburg is the Chief of that Bureau. Mr. Chairman, may I make a brief statement while Mr. Strassburg is coming up. This is the Bureau which regulates the rates and prac- tice~ of the carriers. It includes international and interstate. It iii- eludes such matters as satellite communications. PAGENO="0047" 43 Some of the major activities in this Bureau which are underway and have been underway are the comprehensive study of A.T. & T. We have made a decision as to the first phase, establishing a range of return and a rate base or defining such a rate base. It i~ this Bureau which is in charge of the study of the relationship between com- puters and communications. The Bureau has only recently completed a study of the telegraph industry. It is a bureau in which there are tremendous new policy issues under consideration. Mr. Bernard Strassburg can give you more detailed information about it if you would be interested in hearing it. Mr. BRooKs. Briefly. And while you are covering this, have you made any study of the kind of services out of the telegraph com- panies? I have found that the service has deteriorated severely in my area and other Members of Congress have had the same experience. I don't think there are too many telegrams, but you have trouble getting them delivered to a newspaper office or a radio station or a television station. The quality of transmission is so bad-names, figures. If you write them four times they still get it wrong and I do not know what their problem is. Have you looked into that? Mr. STRASSBIJRG. There are a number of factors that enter the problem. Yes, we have looked into it. We follow it very closely be- cause we know that the message telegraph service has been deteriorat- ing and declining in this country. It is in part an economic problem, a financial problem. Mr. BRooKs. If you send a telegram in a business transaction, the market could change considerably by the time it is received or they might buy something else due to misinterpretation. Mr. STRASSBTTRG. We are well aware of those concerns. As I say, the problem from Western Union's standpoint is a financial one. The de- mand for public message service has been declining for many years. There was just a report in the London press recently that the British Post Office is considering eliminating the public message telegraph service because of the problems of putting it on a paying basis in that country. Well, the economics of public message telegraph service apparent- ly are not very favorable. Nevertheless, Western Union realizes and we impress upon them constantly that they have an affirmative ~bliga- tion to the public to maintain an adequate standard of service. We do get monthly speed-of-service reports which are based on studies made pursuant to rules and regulations of the CommissiOn which give us a barometer of how service is improving or deteriorating. Last year, because of the extent to which service had been degenerat- ing, the Commission did bring the matter to Western Union's atten- tion in some rather firm and specific terms, and Western Union, as a result of that, has embarked upon a conscientious and real effort to rehabilitate and restore the general level and speed and accuracy of service to the standards which it has set as its own service objec- tive. So you can say that the Commission is living with the probi~m and it is working with the problem and so is the telegraph compan~. Mr. BRooKs. How many people are iTt your Bureau, Mr. Strassbuig ~ Mr. STRASSBURG. The Bureau is presently staffed with 156 personnel. PAGENO="0048" 44 I happen to have a breakdown of that personnel by professional category. Of that 156, 31 are attorneys, 23 are engineers, 38 are accountants, five economists, 10 public utility specialists, and the rest are clerical and secretarial and some technicians. This makes 15~ people which are doing a job of regulating an industry that produces services measured by revenues of a magnitude of $31/2 billion a year, just from services subject to our regulatory jurisdiction. The Bureau is-we have it organized principally along industry lines. We have-I will have to retract that. We used to. We now are organized into a domestic rates division which handles all of the domestic rate and tariff questions which arise principally in the area of the Bell System and Western Union. We have a Domestic Services and Facilities Division that handles the certification of new construc- tion by carriers, mergers, and consolidations. Mr. BRooKs. Mr. Strassburg, pardon me. Would you elaborate on that later and cover that concisely. Let me ask you just one question. Have you considered, or has the Commission considered, printing the record on your computer study including the responses from the interested parties so that it would be available both to students of the communicatiofls media and students of Government regulations ~ Mr. STRASSBURU. Mr. Chairman, unfortunately, the Commission does not have the wherewithal to print this. Mr. BROOKS. How long-what would it cost the Commission to do it ~ Mr. STRASSBURG. It is something over 3,000 pages, sir. There were 55 respondents and the responses were made up of something between 3,000 and 3,500 pages. Mr. BROOKS. Was it your feeling that it would be desirable to have it printed when you brought the subject up? Mr. STRASSBURO. Yes, indeed. As a matter of tact, I chatted with Mr. Baynard about this from time to time and it would be a definite service to the students in this field, the academic world, and the industry itself is very much concerned with directions this industry is taking. This is a landmark proceeding and there are going to be some landmark decisions coming out of it. Mr. BROOKS. And there is going to be some more material? Mr. STRASSBtTRG. There will be more material; yes. Mr. BRooKs. What would it cost, Mr. Chairman? Did you consider that? Mr. HnE. I will tell you this. Just looking at the sheer volume of' it we know that the printing of it is beyond our resources. But I am PAGENO="0049" 45 very much interested in your inquiry as to how this might be printed. I think it would be a tremendous service to the public and industry. As Mr. Strassburg has mentioned, this is the first significant inc~uiry in the field. If you were to see our notice of inquiry, I am sure you will appreciate that it is a very significant undertaking. Mr. BROOKS. We might consider the possibilities there. Mr. }{rr~. Other agencies have indicated substantial interest in the proceeding, and if ways and means could be provided for the printing of it, it would be helpful to the study of it. We would get the benefit of a lot of people who I think might not have an opportunity to examine the file at our premises. Mr. BROOKS. Mr. Strassburg, did you `hire some consultants to aid in this computer study or `did you use in-house people? Mr. STRASSEURO. We are using in-house people but we do not have all of the disciplines which are properly oriented in the computer field to do the job that has to be done, and the Commission is now about to undertake a contractual program which will `bring in some addi- tional outside experts. Mr. BROOKS. Whom are you planning to employ in that? Mr. STRASSBTJRG. It has not yet been selected. They have not been selected. Mr. BROOKS. Do you know what the capabilities are that they must hav~e? Mr. HYDE. We know the capabilities of several possible contractors. We are discussing this matter with the Bureau of the Budget. We know several research firms which are interested. We expect to enter into appropriate arrangements but we are working out the details with the Budget Bureau right now. Mr. BROOKS. Mr. Strassburg, sir, thank you for your courtesy and heip and for contributing to the industry and to the knowledge in this field particularly. Mr. STRASSBURG. I am very grateful for the interest that the com- mittee has shown in the computer study because it is of great import- ance and significance to us. D. PROGRAM V-SAFETY AND SPECIAL RADIO SERVICES Mr. BROOKS. I wonder if we can concisely get the next program-the number of people, essentially what they do, from the safety and special radio services man? PAGENO="0050" 46 (Exhibit H follows:) J~XrnBIT H-~FAoP SKEET-SAFEP~ AND SPECIAL RADIO SmwIcEs PRQGEAM DEPARIMEiST oR AGENdY PROGRAM SUBPROGRAM 100 Fcc ~~zid Special Radio CODE CODE CODE 200 ~tNALYSIS AND CONTROL.CODES 300 4O0 FISCAL YEAR Usobligsted Csoeyxnen Appoopoistixoan ~ Yese Reqxext t Totsi Ansilable Ystal Obligated ep Expended 500 "In house" inputs 510 Personnel: 511 Comp. 512 Benefits 513 Travel 52C Expenses: 521 Communicatibnn 522 Transportation i,r98~862 135,118 10,000 k5~90O 1,750 . 523 Printing 22,3311. ` 524 Supplies and Consum- able Materials sse Capital Equipment 540 Land and Structures 541 Additional Investment 542 Rents 550 Total 600 Funds distributed 610 Contracts 620 Grants 630 Loans 640 Benefits 650 Other 660 Total 700 TotEl . 81~,0T8 12,000 2,110,01~2~ . False Fiseal Yes p 800 Input-output ratio ______________ ______________ ______________ 810 1. Input ______________ - ______________ - ______________ 811 1. Output ______________ ______________ - ______________ 820 2. Input ______________ ______________ ______________ 821 2. Output ______________ ______________ ______________ 830 3. input _______________ - _______________ - _______________ 831 3. Output ______________ ______________ ______________ 840 4. Input - 841 4. Output - 850 5. Input _____________ _____________ _____________ 851 5. Output ______________ - - 860 6. Input ______________ ______________ ______________ 861 6. Output - 870 7. Input ______________ ______________ - 871 7. Output / - 880 8. Input - 881 8. Output ______________ : - Ppistud fop osu sf Rsnus Gse~up~uoust Activities ssacsn,ultteu, Chslcssus Jack Brosku us-so-a sea PISOGRAM V: SAFETY AND SPECIAL RAnlo SERvICES ,Statutory aitttkority Communications Act of 1934, as amended. Nature of program and benefits The Safety and Special Radio Services embrace the use of radio by ships and aircraft; by rail and motor carriers; by local governments; by amateurs; by industry, manufacturers, public utilities and other business; by individuals; by agencies concerned with polie~ and fire protection; and for national defense PAGENO="0051" 47 and other emergency services, In brief, these services anibrace practically all radio usage which js neither broadcasting nor, for the most part, open for hire to the general public. Licenses in these services as of April 4, lOGS, total approxi- mately 1,700,000. These services include some of radio's o~de5t functions. Marine disasters proved radioteiegra~hY to be an effective aid to ocean reseues~ as well as for speedy sbip-to~ship and ship-to-shore communication. The early use of radio direction- finders further established the value of radio for navigation and safety at sea. Two world wars have accelerated the growth of radiocominunleation and radio- location. Present-day uses, both in nutaber and variety, are far in excess of anything envisioned 10 or 15 years ago. Aviation radio serviccs.-~Aeronautical radio is vital to the protection of life and property in the air, and to an adequate system of navigational aids on the ground and aloft. The necessity of radio for aircraft operation is shown not only because it is legally required for airlines and for aircraft flying into certain eontroliLed airports, but also by the large number of voluntary installations by private aircraft operators. T1~e Aviation Services license and regulate non- governmental aircraft radio stations and more than a dozen distinct categories of related land-radio operations. Marine radio se'rvices.-Tbe Maritime Mobile Service employs ~adiotelepbone and radiotelegraph. Broadly speaking, maritime radio uses may be divided into those (a) required by law for safety purposes, (b) voluntary on the part of ship owners (combining safety with other purpose's, s'u~b as navigation and commerce), and (c) available for public correspondence. All radio stations on ships of U.S. registry (other than most Government stations) are licensed by the Oo,nuuission. Radio stations on vessels communicate with other ships and with coast stations to transmit and receive s~gnals and messiages relating to safety of life and property and to assist navigation. In turn, coast stations trans- mit reports on weather and hazards to navigation. Ships may also communicate with aircraft. Many shipboard stations transmit and receive massages for for passengers and crew. Public safety radio services,-These services are available, primarily, to governmental agencies directly concerned with the public welfare. The Police Radio Service, the oldest of these services, serves municipal, county, and State police departments. It furnishes communication between police land stations and mobile units, including police aircraft and police ships. Even the foot patrol- man is part of this network when provided with a portable transmitter-receiver combination. The Fire Radio Service plays an important role in the prevention and control of fires by maintaining contact between fire headquarters and fire- fighters. The Local Government Radio Service permits municipalities to trans- mit communications essential to their official activities, including civil defense. The Highway Maintenance Radio Service provides communication primarily between base stations and mobile units, `and between the latter. Base stations may communicate with each other on a secondary basis. Special Emergency Radio Service authorizations are issued to hospitals; ambulance or rescue squad operations; medical schools and doctors, including veterinarians; disaster relief organizations, such as the Red Oresls; school buses, and beach life-saving patrols. Industrial radio services.-Thë industrial radio group represents a new tool in the national economy. Savings are made in time spent by employees on cer- tain projects land in the ability to summon assistance to trouble spots before they become serious, Radical changes in operating procedure have been brought about by the utilization of radiocommunication. For example, a radiocommuni- Y cation system eliminates the* need for holding a fleet of repair trucks at base for emergency use. With radio, trucks can be dispatched on routine assignments, and in an emergency they can be rerouted to the scene more rapidly than other- wise possible. Land transportation radio se~viees.-The5e services provide radiocommifflica- tion for railroads, motor carriers, taxicabs, and automobile emergency usage. Radio increases railroad efficiency and economy. The Motor Carrier Radio Service is employed for contact between `terminals and buses and trucks' oper- ating on the streets or highways. The Taxicab Radio Service is used to direct the movement of vehicles (not for communication by passengers) which increases the efficiency of taxicab operations. The Automobile Emergency Radio Service is used by automobile associations and garages to enable the rapid dispatch of tow trucks and other service vehicles. PAGENO="0052" 48 Private miorowave.-Users in many of the radio services described herein are also eligible for point-to-point operations. The use of such facilities is grow- ing in the Public `Safety; Industrial and Land Transportation Services. Typical systems include those used by police agencies, petroleum plpelines~ turnpikes~ railroads, and electric power companies. Amateur radio service.-The Amateur Radio Service is one of the largest radio services in aumberof licenses and, a~leo is one of the oldest and most active radio groups. It provides interested and qualified citizens with a means of ob- taining technical training and experience in the field of radio. An amateur sta- tion may n~t be used to transmit or receive mes~ages for hire, or for any coin- inercial enterprise. Radio amateur civil emergency 8ervice.-An important part of the amateur's public service is Ills participation in this nervier. This `is a service which makes use of the amatear, hi's equipment and portions of his frequency `bands in time of war or other national emergency. Citizenc radio ecrvioe.-The Citizens Radio Service has become the fastest growing service and is now the largest single radio service administered by the Commission. It Is intended for essential personnel or business short-range radio. communication, signaling, and radio control of objects and devices. In addi- tion to private individuals, business firms, organizations, and local govemme~ts can qualify for licenses in this service. Name of the official having direct operacional responsibility over the program: James Fl. Barr, Chief, Safety and Special Radio Services Bureau. Mr. Hyne. Mr. Barr, the Chief of the Bureau is here. Mr. BROOKS. You can revise and extend your re' rks-don't extend them too much, but revise them in a summary, because we are going to have to leave. They have some legislation on the floor. Mr. BARR. The safety and special radio services are a term that we use for essentially all of those that are licensed by the Commission with the exception of the broadcast and the auxiliary broadcast services and those that are associated with the operation of common carriers. To run very quickly down these services, they are used, of course,, by practically every individual and company with a requirement for radio communication. They are, of course, indispensable to aviation, land transportation, and the marine services and we have those as three of the seven general categories. I might run down those seven categories quickly. The aviation Services, the marine radio services, the public safety radio services, industrial radio services, land transportation, and then too, you might say, minor ones, except in terms of numbers, a citizen's service, and the amateur's service. All of these `authorizations that are existing in `these now total something in the order of 1.64 million. We process applications at the rate of about 500,000 a year in all those services. We do this with a complement in the Safety and Special Radio Service Bureau, which carries the principal responsibility `for the administration of this program, of about 160 people. L PROGRAM VI-COMMuNI~y ANTENNA TELEVISION Mr. BROOKS. Thank you, sir. That is very helpful. Could we hear from CATV? PAGENO="0053" C 0C0 ii -~ I a z C C C C M ~ CD *1 M a C V ~1~L PAGENO="0054" PsoonaM V1 COMMUNITY ANTENNA T1~LEVISION. $tatutory authorqv ~ ~ * : Communications Act of 1934, as amended, sections 1,2(a), 4(1), 303(b), 303(f)~ 303(r) and 307(bj. Nature of proyram and benefits The program is designed to bring about an orderly integration of CATV into the broadcast television structure. The need for regulation arose as follows: As long as OATV systems served areas where viewers were unable to re- ceive satisfactory signals from TV stations, they presented few problems. Now~ however, OATV systems have expanded into areas where TV reception is satis- factory. This may result in situations in which the local station is faced with new competitive pressures. A television station transmits only on on channel, while a CAPV system can provide it~ subscribers with a choice of network and local services on up to 12 channels. In some areas, CATV operators brought new signals into established TV markets resulting in complaints to the Commission. TV station operators charged that some CATV systems were not carrying local signals and that other systems duplicated programing of the local TV station on other channels so that viewers no longer tuned to their local stations. These factors threatened the continued effective operation of local TV stations. In essence, the rules adopted by `the Commission in March, 1966 reguLate and limit CATV in three major respects: (1) "Compulsory carriage" rules require OATV to carry the signals of loeail and nearby TV statitns if requested; (2) "ExciusiPity" `ruleS provide that a TV station with a stronger signal over the OATV com'mun'ity may prevent the system from carrying on the same day those programs `of another station with a weaker signal which du~tlica~te its programs; and (3) "top 100 market" rules provide that in the markets so designated CATV systems may not, without Commission authorization after hearing, carry the signals of a TV station unless that station `places `a signal of at least grade B strength `over the community serviced by the C'ATV system. All of these rules are subject to petitions for waiver. Additionally, special provisibns in the rules permit station's to ask `for spbcial relief over and above the ordinary requirements. Since the adoption of the rules m~ore than 300 petition's to waive top 100 market hearing requirements and n~ore than 550 petitions for special relief have been received. These include such things as requests to waive carriage and exclusivity rbqui're'ments, requests to initiate enfo'rc~ment proceedings against noncomplying sys'tep~s, petitions to impose longer periods of program exclusivity, etc. In Septeuiber, 1963 the `Commission by recruitment from its established offices and bureaus created a CATV `task `force. This group advises and makes recom- mendations to the `C'o'mm'i'Ssion with respect to t'he pending backlog `of c'onfiict~ and with respect to `the `devclopmen't of a regulatory program for community antenna television `system's and relate'd private and common carrier `microwave radio facilities. In connection with the processing of thklividu,al requests for waiver or other special relief, the Commission has disposed of 106 top 100 `market petitions f or waiver and 263 petitions for speclal relief. Flowing from this activity there are now 51 separate hearing proceedings go'in~g on in the Oommissio'n. In the ever eontinuin'g development of a regulatory program, the Co'mm'ission has initiated rule makings an'd inquiries to `Look `into such question's a's: Whether educational television signals `should be exempt from `the top 100 market rules (decke't 17597); to determine wheithpr the top 100 market `rules `should be modified to permit carriage of UHF slgn'als from markets whose VHF signal's must be carried (`docket 17438); to find out ~bether OATV development has reached a point where its ownership might be cousidered incompatible with other types of corn- munlcaitlon's `ownership (docket 17371); and an inqui'ry sen't to CATV `operators and to TV broadcasters in an effort `to `cle'termi'ne the effectiveness and practical difficulties in existing `carriage an'd program exclusivity rules. Name of the offidial having direct `operational responsibility over the program: S'ol Schil'dbause, chief, OA'TV task force. Mr. SCHILDHAUSn. The Commission's program in community an- tenna television is to try to introduce in an orderly fashion this new phenomenon into the existing structure of television broadcasting. The Commission has a program of restricting entry into the big markets PAGENO="0055" 51 at this point, restricting it in this sense-ito insist that before new systems be authorized in the largest markets of the country there be a hearing before the Commission to determine what the impact will be upon existing television and upon the prospects of additional new stations. And secondly, the other facet to the problem-I am running through it quite quickly-is that in places outside the top markets of the country where the Commission's rules on entry are not quite so re- strictive there are all kinds of disputes that arise between cable oper- ators and station operators and they are brought to the Commission and the Commission, through the CATV Task Force and other groups, is in the process of taking care of the problems on entry into the top 100 markets and settling disputes between the operators of the stations in the other markets. The problems are very severe and the Commission is trying its best to find the answers and I think it has a worthwhile program going for it. One other thing; there are some very important matters now pend- ing outside the Commission that will have a substantial bearing on the future direction of the Commission's effort in regulating this in- dustry and also on the development of the industry itself. There is a challenge to the jurisdiction of the FCC over CATV that was argued in the Supreme Court last month-4 think it was March 13, as a matter of fact-and it is expected that there will be a decision in that case before the Court adjourns for the summer and that should be some- time in June. That will supply a lot of answers as to whether the Com- mission can go forward with the kind of program it has in mind or will have to go to Congress and seek some legislative help or what- have-you. Additionally, one of the bases for the Commission's interest in this whole business is that cable operators do stand outside the ordinary channels of program distribution. They pick up signals and don't pay for them and the people they pick nip signals from do pay for them and there is an element of unfair competition. And there is a question of copyright liability that is now wide open that has been tried or heard in lower courts. It is up to the Su- preme Court now. The decisions in the lower courts were against cable operators. That is, it was decided that the carriage of these signals was a performance for which copyright was due and the appeal was taken to the Supreme Court and that argument was held the day the argument on jurisdiction was held, and it is expected there will be a decision on that, too, sometime in June. When these answers are forthcoming from the Supreme Oourt, the Commission will get addi- tional information and so will the industry. Mr. BROOKS. We thank you. Your world is in limbo until you get these two decisions. Mr. HYDE. We are trying to provide an orderly- F. PROGRAM vu-FIELD ENGINEERING AND ENFOROEMENT Mr. BROOKS. The field engineering and enforcement- PAGENO="0056" 52 (Exhibit J follows:) EXHIBIT J-FAOP ~HBET-FIELJ) ENGINEERING AND ENFORCEMENT PROGRAM PROGRAM VII: FIELD ENGINEERING AND ENFOROEMRNT Stat t~tory Authority Communications Act of 1934, as amended; Communications Satellite Act of 1962; treaties and executive agreements to whkth the United States is a party. Nature of ProgramS and Benefits The FCC Field Engineering Bureau has among its responsibilities the enforce- ment of laws and regulations, including inspections, investigations, monitoring, engineering, examination, licensing, processing of applications pertaining to PAGENO="0057" 5.3 painting, marking, and placement of antenna towers, and furnishing direction finding aid to aircraft and ships in distress. It has 24 dIstrict offices, four sub- offices, two marine offices, 18 monitoring stations and three mobile television enforcement units. Within the previously stated broad responsibilities: (a) The Field Engineering Bureau administers commercial and amateur radio operator examinations; issues commOrcial operator licenses to those found qualified by examination; issues interim ship station licenses to provide for immediate use of ship radio stations while regular authorization is being proc- essed; imposes forfeitures against radio operators found in violation of radio regulations; processes transmitting radio antenua proposals for compliance with regulations governing the construction of such structures in the interest of safety to air navigation. Painting and/or illumination specifications are assigned for towers exceeding established height criteria. Durng fiscal 1967 the following related work items were performed: Com- mercial radio operator examinations, 93,1(38; amateu't operator examinations, 15,234; restricted radiotelephone permits issued, 18,093; licenses, permits, and special endorsements issued, 118,242; antenna proposals processed for obstruction marking, 29,199. Performance of the above work resulted in: (1) Providing a means of liveli- hood for individuals who successfully completed examinations as commercial radio operators (91,951) ; (2) served to provide the communications industry with a source of qualified radio operators; (3) provided for immediate use of small-boat communications, generally for safety purposes, by issuance of interim ship station licenses; (4) the collection of $566,626 in application fees, which amount was turned into miscellaneous receipts of the Treasury, and (5) promo- tion of safety of life and property in the air. (b) The Field Engineering Bureau investigates the operation of unlicensed, unauthorized, or interfering radio stations or devices. During fiscal 1967 the following investigative work was performed: Interfer- ence complaints received (including 27,828 complaints to reception of television), 39,986; major eases involving unlicensed operation, 338; major cases involving use of obscene, indecent, or profane language, 54. The above work, among other benefits, resulted in: (1) The protection of lives and property in the air. A number of cases of interference, successfully resolved, involved barmftl interference to aircraft communications and radio navigational aids; (2) improved efficiency of public safety operations. A number of the sources of interference that were located were causing disruption to communi- cations of police and fire services; (8) restoration of normal television reception to thousands of people by locating, `and removing, sources of interference; and (4) improved public awareness of and compliance with communication laws by detecting, locating, and suppressing the activities of unlicensed or unauthorized stations and curtailing use of obscene, Indecent, or profane language on the airways. (c) The Field Engineering Bureau inspects all classes of radio stations licensed by `the Commission to determine compliance ~vith the Commission's rules and, international agreements. During fiscal 1967 inspections were made as follows: Broadcast stations, 2,149; other than broadcast and ship stations, 9,390; compulsorily equipped vessels, 4,199; voluntarily equipped vessels, 3,110. Total inspections, 18,848. The above inspections resulted in, among other things, enhancement of the safety of lives and property at sea, improved and more efficient use of the radio spectrum utilized by the land mobile service `and a continuing high caliber of the technical phase of both `aural and visual broadcasting. (d) The Field Enigneering Bureau performs surveillance of the entire usable radio spectrum to enforce laws and treaties; intercepts, locates, and identifies sources of radio emissions causing harmful interference; makes engineering measurements and collects associated data on radio spectrum usage for regulatory and rulemaking purposes, to meet our Government's responsibilities to interna- tional organizations, and to provide critically important aid in solving inter- ference cases through up-to-date data on currently active radio emissions and through improved equipment; provides intercept and direction findings assistance on distressd sea and air craft. During fiscal 1967 the monitoring/direction finding network responded to 3,200 major interference complaints, issued 40,000 officials notices dealing with PAGENO="0058" 54 on-the~air violations, produced 27,000 radio bearings (includIng 500 bearings on 60 search and rescue emergency alerts), and identified and indexed 36,000 radio signals. Phis work was an effective aid toward orderly and efficient usage of `the radio spectrum's streets and highways resulting in more efficiently operated industries contributing to the Nation's economy, a smoothly operating communication media that daily, advantageously affects the life of every citizen, and promotion of safety of life and property `through radio direction finding assistance to air and sea craft search and rescue operations. Name of the official having direct operational responsibility over the program: Curtis B. Plummer, Chief, Field Engineering Bureau. Mr. IJIThE. This is our largest bureau in terms of personnel. It is our enforcement and compliance arm and Mr. John Evans can give you an idea of what they do. Mr. EVANS. The Field Engineering Bureau has among its responsi- bilities the enforcement of the laws and regulations, including in- spections, investigations, monitoring, engineering, examinations, licensing, processing `applications pertaining to the painting and marking and placement of antenna towers, and furnishing direction finding aid to aircraft and ships in distress. It has 24 district offices, four suboffices, two marine offices, 18 monitoring stations, and three television enforcement units. These work in a coordinated effort to accomodate the situation which might be at hand, I don't know whether it would be purposeful `to give you an example of how it works or if you would like to ask questions. Mr. BROOKS. Put an example in the record. Mr. EVANS. We might get a complaint of interference from another Government agency or from any source, an unknown interference. We would first have to place our directional finding network in operation to find generally the area of interference. This is a rather broad gage type of thing. After we localize it to a broad area, we send out the investigative units which have what you might call micro- direction finding capabilities to pinpoint the interference source to a particular building, and finally to a particular room in a building. Then we enter, make the appropriate investigation and determine the reason for the interference. If it is inadvertent or unintentional, it is voluntarily discontinued upon being brought to the attention of the responsible party. If it is deliberate, legal steps are taken to shut it down. Mrs. HECKLER. Is the monitoring directly connected to interfer- ence? Do you monitor only for interference? Mr. EVANS. No, we monitor for ships in distress and lost aircraft. We monitor for many other types of requests that are made of us. Collection of frequency utilization data is among a number of activities that fall in the monitoring area. Mrs. HECKLER. Do you monitor commercial broadcasting stations? Mr. EVANS. We monitor everything licensed by the FCC. Mr. BROOKS. How many employees are assigned to' monitoring? Mr. EVANS. To the bureau's monitoring itself, around 170. Mr. BROOKS. 170 for the whole country? Mr. EVANS. That is for the whole country. That is in the Monitoring Systems Division. Mr. BROOKS. Thank you, Mr. Evans. We appreciate your help and I wonder- PAGENO="0059" 55 Mr. EVANS. Mr. Chairman, I think a point of clarification. The Field Engineering Bureau encompasses more than just monitoring. That figure at the moment is 408, but your question was how many were specifically monitoring and that is the lesser figure. 0. PROGRAM VIll-REIMBURSABLE PROGRAMS Mr. BROOKS. The only remaining program would be under exhibit K, reimbursement programs. (Exhibit K follows:) ExHrr~iP K-FACT SHEEP-REIMBURSABLE PROGRAMS P.1.~t.d ~ f H~**.~ ~ A~t.~'iti~ ~ Ch~fr~~ i~k B~ks PAGENO="0060" 56 RmMBuas~&BLE PROGRAM$ Program No. 2, Navy Depathñent: Ilaidlo direftion finding and intercepting telemetry transmissions on atomle~powered buoy in Gulf of Mexico for Navy, $30,000. Program No. 3, RTOM: Government and 1 n~ustry Advisory Committee on Maritime Telecommuniea'tions_iooking towards improvthg telecommunications and utilization of new scientific discoveries in the field, $34,000. Program No. 5, Office of Civil Defense: Emergency communications planning, $320,000. Program No. 6, Office of Civil Defense: Preparation and printing of "A Guide to Civil Defense Management in the Communications Industry" $7,000. Program No. 7, AID: Programing ITU fellowships and other foreign visitors in the United States for State Department, $17,000. Program No. 8, Air Force: Long range direction finding and intercepting tele~ metry transmissions on high~aItitude. scientific baloons for Air Force, $50,000. Program No. 10, Navy Department: Reimbursement for use of our computer, $50,000. Mr. HYDE. I believe the exhibit covers our activities there. Mr. BROOKS. Is there anything you would want to add to that, Mr. Chairman, or possibly Mr. Paglin, let us know. I think this `is probably adequate because it is a rather routine operation. Mr. Chairman, we have no further questions. We want to thank you very much for your courtesy in coming down and wish that you would convey to your fellow Commissioners my best wishes. Mr. HYDE. We welcome the opportunity to present information here regarding the FCC and we also appreciate the expertise of the questions that have been addressed to us. I hope we have been helpful toyou. Mr. BROOKS. I do hereby as chairman, adjourn the committee. (Whereupon at 12p.m., the subcommittee was adjourned.) PAGENO="0061" APPENDIXES APPENDIX A.~-WRrrrI~N RESPONSES TO QUESTIONS SUBMITTED BY Sui~coMMIrr~ FEDBEAL COMMUNIOATIONE QOMMISSION GENEflAL QUESTIONS A. Jnstiflcation of personnel not chargeable to specific programs 1. What are the total funds available to your agency as a whole for fiscal 1968? $19,170,000 is available tothe FCC in fiscal year 1968. 2. How many employees does your agency employ? Average employment for fiscal year 1968, Including FOO headquarters and field personnel, will be appuoximately 1,469 man-years. 3. What is the geographical extent of your operations? The FCC, through its field offices and monitoring stations, operates in all of the 50 States and territories. In addition, the agency participates in numerous international conferences and meetings concerning all aspects of telecommunica- tion; assists in the radio location of aircraft and vessels In distress under the U.S. Government's search and rescue plan; and regulates the overseas services (wire, ocean cable, radio, and satellite) provided by communications common carriers, including the Communications Satellite Corp. 4. Under your program budgeting breakdown, do you have a support program covering the operations of your office as well as other policymaking personnel? The FCC has a program category entitled "Policy Direction and Support." This category covers both key policymaking personnel and administrative or support type activities. It includes the Offices of the Chairman and the Commissioners, Office of Executive Director, Office of General Counsel, Office of the Secretary, and Office of Information. Certain activities of the Executive Director and Secre- tary, such as data processing and dockets, `are allocated directly to the sub- stantive programs which they support. 5. How much money is available in fiscal 1968 for expenditures under this support program? $3,073,781 is available for policy direction ai~d support in fiscal year 1968. 6. Briefly justify expenditures for the support program in terms of the nature and extent of your operations and responsibilities. The Federal Communications Commission is a bipartisan independent regula- ~ tory agency composed of seven commissioners appointed by the President, by and with the consent of the Senate, one of whom the President designates as Chair- man. Commissioners provide policy direction for the agency in the numerous and complex issues which come before the Commission ~s it carries out its regulatory responsibilities in the rapidly developing field of communications. Its mission covers administrative, quasi-jUdicial and quasi-legislative responsibilities in the regulation of interstate and foreign communications, by wire, cable, radio, and satellite, with the objective of "mgk[ing] available, so far as possible, to all the people of the United States a rapid, efficient, nationwide, and worldwide wire and radio communication service with adequate facilities at reasonable charges, for the purpose of national defense, for the purpose of promoting safety of life and property through the use of wire and radio communica- tion. * * "."- ( Sec. 1, Communications Act.) The Chairman of the Commission, in addition to his duties as a commissioner, serves as the Chief Executive Officer of the agency. In this capacity, he presides at Commission meetings and represents the Commission at legislative and budgetary hearings before the Congress and the Bureau of the Budget. He also (57) PAGENO="0062" 58 acts as the primary manager of Commission administrative operations, includ- ing activities affecting other Government agencies and congressional liaison functions. The Executive Director is directly responsible to the Commission and works under the supervision of the Chairman, assisting him in carrying out the Com- mission's organizational and administrative responsibilities. His principal role is to coordinate the activities of staff units of the Commission, with the objective of prompt disposition of the matters with which they are charged. He is directly responsible for personnel management, budgetary planning, and administrative services operations, and supervises implementation of the Public Information Act of 1966. The Office of General Counsel is responsible for advising the Comniission on legal matters involved in setting, and implementiug policy. The General Counsel also represents the Commission in litigation in the courts, coordinates the preparation of the Commission's legislative program, and acts in international communications matters. The Office of the Secretary has the responsibility for signing and processing certain Commission correspondence and documents. He is the custodian of the Commission's seal ~and records and maintains minutes and records of Commis- sion actions and docket proceedings. The Secretary supervises the library and assures that library proceUures and volumes procured are responsive to the increasing Commission requirements for information. The Office of Information is responsible for informing the public of Commission actions, provides internal information services for the Commission, and acts as liaison with representatives of the press. B. B'u4get processes 7. Has your program breakdown been approved by the Bureau of the Budget? The program catgories in the Commission's presentation to the Government Activities Subcommittee are those presently used by the agency for the prepara- tion of its annual budget. The FCC has also developed a' new program structure in accordance with guidelines promulgated by the Bureau of the Budget. This new structure has been adopted by the Commission and approved by the Bureau of the Budget. It will form the basis for implementation of a planning, program- ing, budgeting system within the FCC, specifically for the preparation of a pro- gram and financial plan and program memorandums. At this time, no changes are planned in the format of the conventional budget. 8. Does your program structure flow generally along functional lines of the agency? The present program structure used in the FCC budget flows partly along organizational lines and partly along functional lines, with certain support activities allocated to the basic programs which they support. For example, all of the activities of the Broadcast Bureau are included in the broadcast program. In addition, certain staff and support activities such as data processing and examiners conducting broadcast hearings are also charged to this program. Categories in the new FCC program structure are more directly related to agency missions and objectives rather than `to organizational elements or functions and, wherever feasible, staff and support activities will be allocated to the substan- tive program categories which they support. For example, with this new struc- ture, field enforcement activities of the Field Engineering Bureau will be charged to the sevei~al substantive program elements rather than appear as a separate program category. 9. Has the program budgeting concept been fully implemented within your agency as yet in operational terms? The program budgeting concept has not been fully implemented within the FCC. However, several significant steps have been taken thus far. (a) A Plan- ning Advisory Committee has been established. Composed of the Executive Director as chairman, bureau chiefs, Chief Engineer and General Counsel, this group is responsible for advising the Commission on program and budgeting matters. (b) As mentioned above, the Commission has adopted a new program structure to be used in implementing the program-budgeting system. (C) The FCC is currently preparing its first program and financial plan covering the operations of the entire agency and one program memorandum. 10. To what extent do you believe that your new budget concept will improve the efficiency of agency operations? PAGENO="0063" 59 It is anticipated that the program~budgeting system will facilitate the dcci- sionmaking processes within the FCC by providing additional relevant informa- tion on major policy and program issues. It will place greater emphasis on the definition of program objectives, the systematic analysis of alternative courses of action in terms of costs and benefits, and the identification of the future implications of current decisions. The Commission recognizes that this sytem must be fully integrated with present decisionmaking procedures, taking into consideration the quasi-legisla- tive and quasi-judicial as well as administrative functions of the FCC. This will require an imaginative application of the basic program planning concepts to the regulatory functions of the Commission. C. Accounting systems development 11. Has the GAO given its approval of your accounting system? The Commission's accounting system has been approved by the GAO. 12. Is the accounting system basically established in terms of accrual costs as the GAO' and this subcommittee have recommended? The Commission's accounting system is basically an accrual cost system. Because approximately 90 percent of the agency's funds are used to pay salaries and related personnel benefits, and these costs are recorded as they occur, the GAO has agreed that a 100-percent accrual system is not absolutely essential. However, the Commission plans to convert to a full accrual system in accordance with Government practice. 13. What is the target date for completely implementing an accrual accounting system throughout the agency? Conversion to a full accrual system will be accomplished when the agency accounts are computerized. In view of other priority data processing projects, this is not scheduled for at least 2 years. 14. Is your accounting system output-oriented so that it will be on the same basis as budgeting and planning? The FCC accounting system is oriented to the program structure currently used in the FCC budget and provides financial data both for planning and man- agement purposes. The costs of personnel service (representing 90 percent of FCC funds), travel and major "Other objects" expenditures are charged directly to the appropriate program. Separate accounts are not maintained for the remaining "Other objects" expenditures, however, the chargeable program is recorded on each obligating document and an analysis is made at the end of the year to obtain detailed program costs. A cross-reference between the present accounting system and the new program structure is being developed so that cost data can be derived for the program and financial plan. 15. What basis do you use for establishing the charges for products or services provided to other agencies, and how are these handled in your accounting system? Separate accounts are set up for services provided to other agencies. Oharges are made for personnel co~pensatiofl, benefits, travel, or any other expenses incurred in behalf of the work program to be accomplished. All of these charges are made to the `special account that has been set up and the other agency is billed quarterly. Memorandums of understanding or work order agreements are entered into for each such reimbursable program. 16~ Are capital assets, such as building and equipment items, formally recorded in the accounting system, and upon what basis are they depreciated? Capital assets are recorded into the accounting system as they occur. Entries and deletions are now made at original cost, if purchased, or at estimated value, if received without cost, this entire system is i~ow under review with the objective of improving the processes, including the establishment of depreciation procedures. 17. Are the costs of the agency's physical assets considered in establishing the charges for services to other agencies? We have not included the cost of physical assets unless it was necessary to procure the capitalized items in order to perform the requested services. 18. Are agency accounting reports used regularly in program management? Accounting reports are used in the management of the Commission's pro- grams. They are issued monthly and show the financial plan as well as obliga- tions to date and remaining balances. Allotments for personnel compensation and travel are made at the bureau level. Other obligation allotments are centrally controlled. PAGENO="0064" 60 19. Are agency a~eounting policies summarized in an `accounting manual with which your staff accountants must comply? Yes, we do have an accoun~ing manual which is followed by our accounting personnel. D. Management information system 20. Do you have an `automated management information system for your agency? The Conimission does not have an automated management information system that is structured to provide information for all management functions. How- ever, certain eo~mptuer~based files of information that have been developed for operating levels of the Commission are extremely use~ui for management planning and control. For example, a data base containing radio license informa- tion for certain safety and special radio services is nted by management to analyze radio station activity for regulatory planning Jyur~poses. Another data base contains radiofrequency assignment information which Is used for frequency allocation planning. 21. In general, what functional areas are included in the management ififorma- tion system? (Examples: financial, planning, ~nd program bndgeting, inventory, personnel, etc.) Computer systems under development In the Commission will provide data banks for use in personnel management, program planning, payroll accounting, and financial and property management. 22. BrIefly describe the state o~f development `of your system and how it operates. The management information systeth will consist `of levels of information according to needs, and will have more than one data base as opposed to a single standard data `base. It will provide information appropriate to the various Oommlssion programs. The developmeni[t of these systems will take place over an extended period as work processes are converted to the computer. 23. Did you perform a "requirements" analysis of the entire agency, or just selected areas? Only selected fun4~tional areas have been considered thus far for automated management cofitrol purposes. 24. To what extent have you considered `the need of other agencies for exchanging information with your agency in the development of your system? Where applicable, consideration has been given t'o the need of other `agencies for exchanging information. For example, our system for collecting and storing data in connection w~ith radiofrequency assignments i's coordinated with require- ments of the Director, Telecommunications Management Office, in order that we may furnish that office with current frequency data in a compatible format. 25. Are you developing a standard data base of information for the entire agency? `The Oommission does not `have plan's to develop an agencywide standard data base. However, experience gained with the Individual data base concept may indicate that this course should be considered. 26. In reporting `statistical information, what standards for coding are you using? The Oommi's'sion has made comments and recommendationis on the various data element standards that have been proposed or adopted for use by the `Federal Government. We anticipate using the standard codes for countries, and State and city in reporting statistical information. There may be other forthcoming standard codes that can be used in our reporting processes. 27. Have you explored all of the information requirements common to your agency which might exist within the data base of other agencies? No, we have not explored all of the information requirements common to our agency which might exist within the data `base of other agencies. However, we recognize that this common requirement could exist and intend to investigate this at a latter time. 28. Are you performing the work in~house, or are you utilizing contractor persfri~nnel? All work in connection with the Commission's management information system is performed in-thouse. 29. What main benefits do you feel your management information system will provide in the management of your agency's activities? We feel that a management information system, if it can be fully automated, will permit a timely response by management to changing conditions. We PAGENO="0065" 61 can see that the computer could have a profound impact on our management control systems, but people are still the key ingredient. To have an effective system, much will depend on the timely transmittal of accurate information as well as the use of the computer to maintain data on the status of operations. Based on the little experience we have bad thus far in utilizing computer-based data files for management decisionmaking, we expect that further mechanization of functions will provide the summarized data that is needed to identify happenings against basic objectives and goals. 30. What is your estimated dollar cost for the completion and operation of the basic parts of your management information system? Due to the long-range implementation of automating various processes ir~ the Commission, we do not have estimated dollar costs for the completion and operation of the basic parts of our management information systems~ 31. At what level is the determination made concerning what is needed in the management information system? Determination as to the needs of a management information system is made~ by the Commission based on the recommendations of the executive director and,~ the heads of operating bureaus and staff offices. B. Internal auditing 32. Do you have a centrally organized internal audit system within your~ agency which operates independently of department and agency operations? The commission does not have a formal internal audit system. However, the Commission performs certain elements of the audit function, utilizing' the management staff of the Office of Executive Director. This staff conductIi~ independent management surveys of agency organization, operatio~iS, and pro~ cedures to determine ways to improve efficiency. The FCC works closely with the GAO auditing staff in the payroll areas. A GAO team has just completed an audit of our payroll records and a GAO representative i~ npw auditing~ our agency audit records and procedures. Other expenditures are carefully controlled and bills are audited prior to payment. The CommIss~0fl recognizes, the benefits of a permanent audit staff but has not establishe~l such a group, due to resource limitations. 33. Is your internal audit staff made up of persons witil experience in accounting and auditing? See answer to 32 above. 34. Is the scope of review by the internal audit staff limited ip any way?~ See answer to 32 above. 35. Are all reports and recommendations of the internal audit s~ff submitted~ in full directly to the head of the agency? See,auswer to 32 above. 36. Is the audit staff responsible to or subject to direction by any officia1~ who is also primarily responsible for an activity which might be audited?~ See answer to 32 above. 37. Are the personnel assigned to the internal audit funct1~n adequately~ protected from recriminations and arbitrary personnel action that might resu1t~ from adverse effect of their reports upon other agency employees? See answer to 32 above. 38. Are all reports and recommendations of the internal audit staff available, to the Comptroller General and to appropriate congressional committees? See answer to 32 above. F. Automatic data processing 39. Do you have a central organization in your agency which is responsible for ADP management? Yes. The Commission has a central data processing facility under the direction amid coordination of the Executive Director. The Executive Director reviews plans. for the use of the Commission's computer to ascertain that end objectives con-, form with Commission policy, and when necessary establishes priorities of use based on program urgency, fund resources, and probability of cost sayings. 40. Will you describe its functions~ The Data Processing Division is responsible for identifying areas of potential ADP applications throughout the Commission, conducting syste~s ttm~dieS, an~ designing, programing and implementing data procesising systems to improve quality of service and to reduce operating costs. These systems are cjeveloped and installed in collaboration with the operating bureaus and staff offices. The Data, PAGENO="0066" 62 Processing Division conducts a continuing review of the Commission's computer systems with the view of making further economies and improvements. 41. Who has the responsibility for deciding whether or not the use of a com- puter for a particular function within your agency is justified? The responsibility for decision to use a computer for a particular function resides with the operating bureau's management and the Executive Director who ascertains that the end objectives conform with Commission policy. 42. On what basis is the decision made? Are there documented systems studies available for review in all cases? The basis used for deciding whether to use a computer for a particular func- tion varies. The considerations are: monetary and manpower savings, improved service to the public, increased efficiency, availability of computer time and manpower resources, and priority of the functions. In all cases, proposed com- puter systems are documented for review and approval by management. 43. Can you cite instances in which a request for a computer system was disapproved for lack of adequate justification? Inasmuch as the Commission has acquired only one computer system to serve various organizational elements, there has been no occasion to evaluate proposals f or additional systems. 44. Assuming the use of a computer has been fully justified by a proper study, are there procedures for determining whether the requirement can be satisfied by using (sharing) equipment already installed in your agency? Will you describe the procedure? Since the Commission has one computer and all systems are run in-house, it is a rare occasion When work cannot be produced by the central facility. Certain research engineering proble~ns requiring an unusually large memory facility for faster solution and turn-around time have been processed on a National Bureau of Standards computer. In these cases, the use of the Commission's computer was first considered, and it was determined that a more powerful computer configu- ration would produce results faster at an economical rate. 45. To what extent have you been successful in getting the users to share equipment instead of acquiring their own? With the exception noted above, the large-scale computer system in the Com- mission has been able to satisfy the systems requirements of users. 46. Do you review the GSA lists of available excess equipment before going to the open market to acquire equipment? Yes. By this means we have acquired a valuable computer clock device and two card punch machines. 47. Who makes the determination that excess equipment can or cannot do the job? The Executive Director on the recommendation of the Chief, Data Processing Division. 48. What has been your experience in making use of excess equipment The computer clock which sells for about $10,000 installed was in good con- dition and immediately useful. Tn the case of two excess card punch machines acquired through the excess list, the total cost to re~eon'dition and maintain them on contract will nWke the transaction `somewhat legs than economichi. 49. Assuming it is necessary to acquire equipment from the commercial market, do you normally invite all qimliffiod sup~1iiers to submit proposals? What are the exceptions? It is a firm pra'dtiice of the Commission to Solicit all qualified suppliers when ADP equipment is ricqulired. We solicited proposals from 18 manufacturers when we acquired our computer system in 1962. `50. Who makes the final selection of equipment, and on what basis is the deisio'n made? The final selection of equipment is made by the Executive Director with the approval of the Commission. The basis used for the selection of the equipment we purchased were as follows: (1) Cost of equipment and firm delivery date; (2) Time required for each computer run; (3) Availability of cOmpatible standby equipment; (4) Programing and system's assistance, and installation planning; (5) Availability and location of equipm'etit for program testing; (6) Availability of software; and (7) Ability to expand equipment configuration to handle increased work- load. I PAGENO="0067" 63 51. Desonibe your program ~or evaluating the actual results of compruter ~ ~ ruse agaiin~t the results anticipated when the use o~f the dc~iruputer was aj~proved. PertodicaHy, the Executive Director reports to the Commission on the restvlts o~f the computer program against the benefits that were antict~pated. Also, the budget process provides a vehicle which is used to review the results of com- puter achievements and plans for future mechanization. Detailed time and use data are recorded and tabulated for management's evaluation of system performa'n'ce against work scheduled. 52. In general, have your computers produced the benefits that were expected? Our computer ha's produced many of the benefits that were expected, such as: the elimination of `backlogs `of radio application's; making available up-to-date information on all licensed conuuunica'tions facilities; reciuting personnel re- quirements in `some areas; and `providing data and answers to pro'blems which were impossible of attainment previously. 53. How many computers do you now have, and how many of these are purchased? The Commission has one Univac III computer, purchased and installed in December 19fi~. 54. Who makes the decision on whether computers are purchased or leased? The decision whether a computer is purchased or leased is made by the Oom- mission upon the recommendation of the Executive Director. The decision to purchase our computer was based on the fact that it would be adequate for our needs for 10 years; and `the `cost to lease the configuration for ten 10 years would be $2,235,000 versus $946,500 to purchase. 55. Is your agency now using any leased ADP equipment? If so, how much longer do you expect to use `it? The only ADP equipment leased by the Commission is conventionhi punched card equipment. This equipment will be phased out by 1970 except for card punching machines which will be used on a continuing basis fo'r produding input to the computer system. 56. Have you made use of thir&party leasing agreements? If so, what has been ~our experienre with theise agreements? The Oommiss'Lon has n'ot entered into third-party leasing agreements. 57. To what e~ten,t ba've you developed `standard systems or application's which are used by your eompu'ter installations? Since we have only one computer installation, standardization of systems or applicati9nis across multiple in'sitallations is not a consideration. ~8. Will you de~crihe the steps you have taken for the development of standard data elements for use by your department under the program recently estab- lished by Bureau of the Budget Circular A-86? The Commission has commen'ted on the various proposed standards that have been submitted for our reviiew. We will utilize those standards that are adopted for the Federal Government when appliiJc'ahle to our systems. 59. What do yiou consider to be the most pressing problems that need to be overOome for you to make better an'd more efficient use's of comcpuite'rs in your agency? Our most pressing problem is recruiting and retaining capable card punch operators bdcause of higher salaries for clerical ~ositions such as elerk-ty~p'ists or ifie clerks. The problem stems primarily from the present classification stand- ards for this occupation which make advancement above the GS-3 level extremely difficult. The requirements for GS-3 card punch operator positions seem too severe in comparison with `clerical positions. G. Personnel management (~0. `Where is the responsibility placed for manpower plaiining hi your agency? The Executive Director has responsibility for manpower p1 aiming. In a CcOm- ,>ljr:l1iii~' this respousthility lie obtains staff su1)port from the Chief. Budget 011(1 l'isc-al Division, Chief. Management In forma tinim Division., a ad the Director of Peronnel. The prill(1p01 meehnnism by which manpower planning is ac- (0mph shed is through the P1 inning Advisory Comnil ttee which consists of Iiiirenii hcads a ad the Executive I)ireetor as chairman. The p1 ans. a s a pprove(l by the (`ommi~sion, arc translated iifto program terms and priced hi the budget (10(11- rmient. The prngram~r and budgets approved for the bureaus then i)CCOfflO the basis 1ev the Director of Persomwl, using siwb informathm as turnover data. projected retiremoiits. a nil manpower utilization considerations, to devOl op long-range i'e- ruhtnient objectives to meet the manpower staffing. Plans are currently under- PAGENO="0068" 64 Way to develop an improved planning structure which will make it possible' for longer range and improved manpower planning. 61. What manpower requirements are forecast for your agency and how are' / these determined? The staffing plans for each organizational element are analyzed in relation- ship to current staff, attrition, retirements, and changes in program emphasis.~ Based on such analysis, recruitment objectives are established. Since the two~ largest groups utilized by the Commission are engineers and attorneys, require- ments must be forecast in terms of the times when individuals in these occupa- tions will become available; namely, at the point they are completing their college work. Plans are set up a year and sometimes 2 years in advance to- visit `specific colleges and other recruitment sources to obtain the necessary individuals. Recruitment quotas take into consideration turnover and other' loss factors in an attempt to assure that the desired numbers and kinds of' people are available at the right times. 62. Is the work in your agency organized with some consideration of the effect on position classification so that the mission can be `accomplished with `the' minimum number and cost of positions? In accordance with `the position management system of the Commission, posi- tion cla~sificatiom consi'dera'tions are given very careful `consideration to assure that the organization reflects good classification practice. Organizations are examined to be certain that there are no unnecessary and uneconomical prolifera- tions of duties, particularly with respect to su'pervisory positions. Organizations~ are also examined to assure a balanced proportion of senior level staff, journey-~ man trainees, technicians, and supportive skills in the position structure of all organizational units. An attempt is made `to hold the number o'f separate organi- zational units to the absolute minimum consistent with (1) requirements for' logical grouping of like functions and (2) `the provision of a minimum super- visory structure to plan, give guidance to, and check the `performance of a competent staff. 63. Is the classification of positions in your agency in accord with applicable- Civil Service Commission standards? Yes. It is the established pol'icy of this Commission to clas'sify positions in~ `accordance with applicable CSC classification standards and guides. This policy~ is expressly stated in `the FCC Personnel Manual, Chapter I: Position Classiflca-~ tion. We are confident that our Gener~J Schedule positions are evaluated in accordance wi'th approved standards and guides issued by the ~Civil Service Commission `and with the principles and grade levels established in the Classifi- cation Act of 1949, as amended. - Wage Board positions in this Commission are evaluated and classified in ac- cordance with the requirements of appropriate standards issued by the Army/Air Force Wage Board and by the Interdepartmental Lithographic Wage Board~. ~These positions will, in the future, be graded in accordance with guides of the' coordinated Federal wage `system `to be administered by the Civil Service Commission. 64. Has the~-~ and advancement This Commissb ment and advanc include provisions of employee skills ally oriented and are being ~velo] ~-~ied career possibilities to assist 1 development ;eof~, career p~erns fc ment of an au'ton as an integral] ployees for conr `and (4) an appra: of individual care ~development rer~ 65. Would y personnel? - ~ression means your PAGENO="0069" 65 We conduct a full~scale college recruiting program for electronic engineers, attorneys, stenographers, and typists. In addition to our internal promotion program whereby promotional Opportunities are publicized to all employees, we insure a broad range of applicants by considering eligibles certified by the Civil Service Commission, as well as those available in our applicant supply file. The latter category consists of present or former Federal employees who are eligible for reinstatement or transfer and applicants outside Government service in scarce category occupations. The largest single occupational category utilized by the Commission is the ~1eetronic engineer, which is an occupation in critical short supply. All appli- ~cants must complete a full 4-year or longer professional curriculum in an accredited college or university leading to a bachelor's degree or higher with specific study in electrical engineering. Also, applicants must demonstrate a pro- fessional knowledge comparable to that which would have been acquired through the successful completion of `the required 4-year college course. In addition, special recognition is given to applicants who meet the criteria for superior academic achievement. The second largest occupational category utilized is that of attorney. All appli- cants must be admitted to practice before the bar of the highest court of the State in which they reside or the bar of the Federal courts of the United States. There are further qualifications for the various grade levels. Applicants above the entry level must have had a specified time of progressively responsible pro- fessional legal experience. Further, the required amount of experience or train- ing must show `that he has the ability to perform completely the duties of the position. In summary, the applicants are rated `based on an evaluation `of educa- tional background, special achievements, experience, and a personal interview. When recruiting personnel *in `other disciplines such as accountant's, econo- mists, administrative, stenographer-typists, etc., we use the basic quality require- ments established by the Civil Service Commission. 66. Does your agency emphasize promotion of employees on the basis of merit? The Federal Communications Commission emphasizes promotion of employees on the basis of merit through implementation of our FCC merit promotion pro- gram. This plan, which conforms with Civil Service Commission regulations, standards, and guidelines for `promotion plans `and selection of employees for promotion, was referred for comment and concurred in by all bureau and staff oThce chiefs and employee groups prior to its adoption by this Commission. `The plan is published for `the guidance of supervisors and employees in our FCC personnel manual. The key provisions of this plan assure `that all qualified employees are considered for `promotion on the basis of merit. 67. How does your agency consider employee complaints, grievances, and appeals? The Federal Communications Commission grievance procedures for the ad- ,justment of complaints an'd grievances provide for an employee `to first take up his grievance with his immediate supervisor. In the event a mutually satisfactory adjustment is not worked out, the matter may be referred, in writing, to `the next higher supervisor whose decision will be given the employee in writing. If ni-i employee believes `there are valid reasons for not following `these initial steps he may refer his difficulty to the Director of Personnel for investigation and an advisory recommendation. An employee has the right to select a `representative to present his grievance to supervisors at all levels, to the Director of Personnel, or to a committee desigaa'ted to hear grievances. This ad hoc grievance committee shall be composed of Commission employees: one named by the employee's super- visor, one selected by the employee, and a third sele'cted by the other `two. The Director of Personnel, or `his representative, will serve in an advisory capacity as a fourth, but nonvoting, member `and act as chairman. The commit'tee will investigate the facts `and hold informal hearings and receive such evidence as necessary. The committee will submit in writing to the `responsible bureau head -or staff officer for his written `decision a report of the facts in the matter together with a statement of its recommended action. If the aggrieved employee is dis- satisfied with the decision be may, if he desire's, `address an appeal in writing to the Commission for a final decision. Our adverse action procedures are in accordance with `the Civil Service regu- la'tion's on appeals from adverse actions. Briefly, employees under our appeal system have the right to have representation of their own choosing and to have a hearing, if they so request, on their appeal by an ad hoc three-man hearing committee. The employees are entitled to name one member of the committee. PAGENO="0070" 66 The committee holds hearings, hears witnesses, and prepares a report of findings and recommendations to the Executive Director. 68. Is personnel management considered to be an integral part of the mission of your agency? Good personnel management is emphasized throughout all elements of the Commission. The bureau heads are considered to be the personnel managers of the organization and the primary responsibility to follow the proper principles and practices in the management of their subordinates falls on these officials. Each bureau has assistants to the bureau heads who are knowledgeable and well trained in personnel matters who give supervisory services to the bureau head and day~to~day assistance on personnel management matters to the operat- ing officials. Within this context the Personnel Division is considered to be responsible for personnel administration and provide the necessary technical advice and assistance to operating officials. 69. How does your agency treat equal employment opportunity and employ- ment of the handicapped? The Federal Communications Commission has eetahli'shed an affirmative equal employment opportunity prqgram which is designed to promote equal oppor- tunities in every aspect of the Commission's personnel management program. Some of the specific actions that are being carried out to accomplish thia objective are as follows: 1. As a part of the Commission's recruiting program a vigorous effort is made to search out qualified minlority group personnel in professional, subprofes- sional, and clerical professions. In addition to the normal recruiting activities in this respect, recruiting visits have be.en made to a number of predominantly Negro schools to acquaint both the faculty and the students of those schools concerning employment opportunities with the Federal Communications Com- mission. 2. The Oomm'iss,ion's training program is designed to provide both upgrading of skills and developmental opportunities. Some of the courses in which minority group employees have received training include: planning-programing~budge~~ ing; electronic data processing; effective letter writing; career English; and shorthand. 3. A continuing effort is being made to examine the job structure within the Commission to redesign jobs so as to increase the dpp~ortuni'ties for minority group employees, as well as all other employees, to enter and progress in jo~ areas where previously this would not have been possible. A particular accomp- lishment has been the redesign of engineering duties wihich has provided for a greater utilization of s'ubpro'fessional technicians thus opening job opportunities for minority group employees. The personnel program of the Commission has always stressed employing handicapped personnel. The Oommission ha's employed mentally retarded, mentally restored, the blind, and persons with other physical afflictions, includ- ing n'onam'b'ulatory. We have also taken `a number of constructive steps to further enhance the capabilities of these individuals to function effectively in their position's such as the employment of a reader for a blind attorney, and the sponsored attendance at `a special speech therapy training course by a handi- capped engineer. H. GAO ai~tdit reports 70. Has the General Accounting Office issued any audit reports on the overall operations of your agency, that is, reports not directed at a functional program of `the agency, but rather at the management and administration of the agency?' The Commission does not have any formal reports on hand from the General Accounting Office. 71. If so, to what extent have `the recommendations contained in these reports: been carried out? Not applicable. PROGRAM II. RESEARCH AND PLANNING IN COMMUNICATIONS TECHNOl OGY 1. What is the nature and authority for this program? This program has a dual Purpose-attempting to solve today's problems in radio communication while preparing to deal with new problems which may confront us in the future. The program is divided into three area's: A. Spectr'u,m planning and resea4-ch.-Includes studies aimed at optimum utilization of available spectrum s~ace. PAGENO="0071" 67 B. Frequency mandgement.-Involves the equitable distribution of the radio spectrum among the various radio services under the Commission's jurisdiction to obtain optimum use of available resources with minimum interference. This involves also the maintenance of accurate frequency assignment files to deter- mine the impact of new assignments upon existing users and for use in the resolution of interference cases. C. Communications technology.-Covers testing and investigation of all phases of communications and equipment as well as specialized studies. The experi- mental radio service provides licenses for basic research in radio and electronics and the development of improved radio transmitters and new radio communica- tion systems not provided for on a regular basis in other parts of the Commis- sion's rules. The Commission's type approval program, determining that equip- ment operates within prescribed limits, is handled by the FCC laboratory. Our type acceptance program, based on manufacturers' test data, determines whether other types of equipment meet FCC standards. This program is conducted pursuant to the Communications Act of 1934, as amended; the Communications Satellite Act of 1962 and treaties and executive agreements to which the United States is a party. 2. Who is the person primarily in charge of this program at the operative level? Mr. William H. Watkins, chief engineer. 3. How much money and capital equipment is available under this program for fiscal 1968? Capital equipment: $31,000 annual. Research division: $3,000 desk computer. Laboratory division: Unknown precisely, possibly only $100,000 value at present. Annual funds: Amount Total personnel compensation $1, 193,515 Total personnel benefits 87,~ 690 Total other obligations 718, 578 Total 1, 990, 783 4. Would you describe the output generated by this program? The output of this program is a conglomerate of improved technical standards generally reflected in our rules; new frequenc~y assignments to stations achieved through coordination with other agencies or countries; the resolution of inter- ference cases; changes in frequency allocations to accommodate new or expand- ing radio services; international registration of certain U.S. frequency assign- ments; encouragement of research and experimentation; improved equipment in the hands of the public through type approval and type acceptance programs; competent technical reaction to technical proposals, computation of difficult technical problems, technical advice as appropriate; and preparation of radio propagation material in convenient format, 5. Can you quantify this output in any way? Only limited portions of the total program can ~e quantified. Among these would be (during fiscal year 1968): (a) Experimental licenses granted: 874. (b) International interference cases: Opened, 931; resolved, 609. ~ (c) Frequency coordination actions with Canada: 4,471. (d) Type acceptance grants: 547. (e) T~ype approval grants: 118. (f) International monitoring observations to Geneva: 52,000. (g) International registrations of assignments: 10,113. (hi) Licenses handled for entry in assignment lists: 103,335. (1) Interagency frequency coordination actions: 35,500. (j) Technical reports issued for public distribution: four. (Ic) International infraction reports: 12,000 (estimated). 6. Would you describe the principal operations that are involved in producing this output? (a) Evaluation of proposed developmental or research program, engineer- ing determinations as to potential intereference, specification of technical param- eter for licenses, and specification of roquired information to be furnished by licensees in their progress reports to FCC on their experimental work. (b) International interference cases: Complaints from licensees undergo technical examination to determine cause of interference and relative inter- national legal rights of stations involved. Monitoring assistance is obtained, PAGENO="0072" 68 if necessary, to provide additional technical information and positive identi- fication of interfering station. Direct communication between Commission and foreign administrittion is used to obtain elimination or reduction of interference. (c) Frequency coordination, `Canadian: Canadian coordination requests are analyzed to determine which U.S. office should make technical examination and provide comments. Comments `of various offices are correlated and checked for adherence to agreed procedures before being forwarded to the Canadian Department of Transport. Canadian comments on Commission coordination requests receive technical examination and are checked for adherence to agreed procedures. Disagi~eements resolved by Treaty Branch which also arranges for field tests when necessary. (d) Engineering evaluation of descriptive and measurement data furnished by manufacturers in support of their transmitter type acceptance applications, comparison of these data against technical standards in applicable FCC rules, granting of type acceptance after determination of compliance with applica~ble rules. (e) Laboratory testing and evaluation of performance of prototype equipment relative to applicable technical standards in FCC rutes, granting of type approval after determination of compliance. (f) Internationi~l monitoring observations: Arrange for appropriate monitor- ing coverage to fulfill outstanding and special requests of the International Tele- communication Union. Monitoring observations are prepared by Commission and private monitoring stations, processed for elimination of errors and for adherence to agreed procedures. Automatic data processing facilities used for tabulation and recordkeeping purposes. Final product forwarded to the Interna- tional Frequency Registration Board in keeping with outstanding instructions and timetable arrangements. (g) International registration of assignments: Notification forms are prepared by each Government agency and non-Government communications common car- rier for each frequency `assignment to be registered internationally. Similar forms are prepared by the FCC staff for international registration of other frequency as'signm~nts. All notices are checked, corrected if necessary, and forwarded ito Geneva. Correspondence `related to the notifications is coordinated by an international notification group representing both Government and non- `Government users of the spectrum. (h) International infraction reports: Repo'rts prepared by Commission an~1 TI. S. Government monitoring `and radi'o stations. Given technical examination for `accuracy of ob'seevation and for adherence to appropriate convention or radio regulations. Forwarded `to administrations responsible for stations shown by the reports to be in violation. (i) Licenses handled for entry in assignment lists: After an application for frequency `assignmept authority is granted, a copy of the authorization is coded and processed by data processing staff for entry into the master computer data base of licensed stations. At periodic intervals, lists of authorized statiGns by major service categories are printed an'd m'ade available to Commission staff members and the general public. (I) Technical reports are the distilled result of investigation of technical material, extensive `computational and analytical effort, data collection, literature review, et cetera. Answer really depends upon the subject `of the needed report. (Ic) Interagency frequency coordination actions: Coordination between Gov- ernment and non-Government users of the spectrum is accomplished by the Frequency Assignment Subcommittee of th'e Inter'department Radio Advisory Committee which meets for 3 days each month. All Government applications for frequency assignment authority and those non-Government applications which require coordination with Government agencies are considered at these meetings. Potentially incompatible assignments are either modified or withdrawn. Coordi~ nation `of potential problems is carried out, primarily by `telephone, between meetings. Unresolved cases may be referred `to higher authority for policy determinations. 7. How many employees are involved in `the program and in what general type of employment categories do they fall? A total of 88 employees are involved, 49 of whom `are engineers. The remaining 39 are snbprofessional and clericaL 8. What is `the grade structure and how many super grades-quota and non~ quo'ta-are involved? PAGENO="0073" 69 There are four super-grade positions in the Office of the Chief Engineer (one GS-18, and three GS-16). Of these, one is quota and three are nonquota. The grade structure for the remainder of the officer (83 positions varying in grade from time to time) is as follows: GS-45 6 GS-9 6 GS-4 4 GS-14 13 GS-8 1 GS-3 1 GS-13 10 GS-7 5 GS-2 - 2 GS-12 6 GS-6 5 WB-3 2 GS-1l 10 GS-5 12 9. What capital equipment, such as ADP, if any, do you rely upon to fulfill this program? (~) Laboratory electronic equipment presently valued at approximately $100,000_depending upon method of depreciation employed. (b) ADP costs of approximately $69,000 are allocated to the program for the processing of frequency assignment records. (c) Technical computations requiring speical computer capability are per- formed under contract with other Government agencies at an annual expense of approximately $4,000. 10. Do you expect the expenditures or the benefits of the program to grow appreciably in the future? If expenditures are allowed to grow, the benefits would grow commensurately or more. We have been budget limited to the degree that efforts must be confined to day-to-day problems at the expense of effective long-range planning. At this time, we don't know what to expect for the agency, but the program should grow somewhere in the Government. 11. At what level are the personnel responsible for the various parts of the program coordinated to determine if the program as a whole is being efficiently carried out? Weekly staff meetings are held with division heads or their representatives, as a minimum, with more frequent meetings on specialized topics. 12. Is there a continual program review within the agency, other than the an- nual budgetary review, to determine n~ore effective and efficient ways to achieve these program objectives? Ye's. Immediately preceding each weekly meeting of the Commission a dif- ferent Bureau reviews its programs and progress and discusses its problems with the Commissioners. 13. To your knowledge, does this program duplicate or parallel work being done by another agency? Duplicate, no. Parallel, yes. The responsibility for frequency management is shared at the naional level between the President and the FCC. The President has delegated his authority, through the Office of Emergency Planning, to the Director of Telecommunications Management (DTM). The DTM performs for Federal users of radio functions similar to those performed by the FCC for non-Federal users. Some frequency hands are designated exclusively for use by the Federal Government, others for the exclusive use of FCC licensees and others are shared. Procedures have been established to coordinate individual assignment's where this is necessary to minimtze the probabl'itiy of harmful interference. 14. Is your organizational structure such that the program is being carried out most efficiently and effectively? Yes. 15. Are there any outstanding GAO rep~rts on this program? If so, wthat is the status of the GAO recommendation's the report contains? No. 16. What significant problems, if any, are you facing In accomplishing the program objectives? None, other than budgetary limitations and the concomitant shortage of qualified technical personnel. 17. Do you administer any grants, loan's, or other di~bui~s~d funds related to this program? If so, is the size of sour administrative staff commens~rate with the magnitude of the outlays? No. 18. If your appropriations were reduced, how would you absorb the cut-by an overall reduction, or by cutting or curtailing certain activities? PAGENO="0074" 70 A combination of both. Treaty obligations in certain areas must be continued- ulthough perhaps With less emphasis. Resolution of interference eases would necessarily continue. Type acceptance of equipment must be handled within 30 days or is granted `automatically by default by operation of rule. 19. If ad1dltional funds were available, wimt would you do with the new money? Depending upon the amount of additional funds-reduice existing backlogs, expand existing ~ograms as appropriate, activate program~s that should have been carried out, replace obsolete or inadequate laboratory equipment, etc. Over- all objective would be to make the agency and telecommunications regulation more responsive tO technological change and more quick to adjust inequities in access to a valuable national resource in increasingly short supply. PEOGEAM Iii: BROADCAsT 1. What is the nature of and authority for this program? The broadcast program i's regulatory in nature and deals with radio and television transmissions intended primarily for reception by the general public. Broadcasting inOludes standard or AM radio, frequency modulation or FM radio, television, and several related auxiliary services. Regulatory activities include spectrum allocations, policy and rulemaking, authorization of service, enforce- ment, and litigation. The statutory authority for regulation of broadcasting and related activities is provided for in the Communications Act or 1934, as amended. 2. Who is the `person primarily in charge of this program at the operative level (name and title): Mr. George S. Smith, Chief, Broadcast Bureau. 3. How much money `and capital equipment is available under this program for fiscal 1PG8? It is $4,107,617 with $17,000 allocated for capital equipment. 4. Would you describe the output generated by this `program? The purpose of regulation of ra~di'o and television transmissions intended primarily for reception by the general public is to make available to all people in the United States interferen'ce.free `aural and visual radio service with pro- graming intended to serve `the needs ai~d interests of the public. The service priorities the C'ommission follows are to provide one service to all the population, multiple service to as much o'f `the p'op'u'lation as possible, and a local outlet for c'ommunity expression where possible. 5. Can you quantify this output in any way? (a) Today there are over 1,000 authorized television stations including 824 `commercial stations `and 185 educational stations. Ninety-four percent of all homes have `tOlevision sets `an'd almost one out of every five homes `has a color TV set. In the average home tele'vi'sion i's viewed abou't 51/~ hours a day. So'me Individual televisions programs of major interest or im'portan'ce `are viewed by as many as 60 million persox~s. (b) There are about 140 of the 185 authorized educ'ati'onal television station's `on the air. These stations cover areas containing about two-thirds of the popu- lation. About 12 to 15 million students in more than 2,000 sc'hools receive part of their instruction throu'g~h educational `television stations. The e'du~cational television stations also provide for home auldi'enrce,s a var'iety of program,s seldom available on commercial television. A new service recently authorized by the `Oom~uission and rapidly growing `is the In's'tr.ubt,ion'al Television Fixed Service (ITFS), which provides for poinIt~to-po'int transmission of television rather than general broadcasting to homes. This serrice p'ermits school systems to transmit and receive simultaneously a num,be'r of television programs. By thus prortding greater flexibility IPFS should increase the in-school use of instruc- tional `television. (c) In the aural broadcast service we ha've authorized some 4,220 standard (AM) broadcast `stations and some 2,050 frequency modulation (FM) b'r'o'adc'as't station's; 345 of the FM stations `are authorized to operate as educational sta- tion's. With development of small `portable receivers the aural broadcast service nan now be received in practically every situation the public find's itself-at home, in the office, in the `automobile, at the beach, and while walking. Today virtually every home has `at `least one radio receiver and the ave'rage family ha's four. Radio, together with television, has become the principal source of newis, in- formation `and entertainment for the American public. PAGENO="0075" 71 6. Would you describe the principal operations that are involved in pro- ducing this output? Applications for new, or modifications in existing stations in the AM, FM, TV, and auxiliary services are processed to determine technical, legal, and financial qualifications of the applicants. Applications for renewals, transfers, and assignments of existing authorizations are also processed in accordance with appropriate rules and policies of the Commission. Bureau personnel also participate in adjudicatory proceedings and enforcement activities. Other activi- ties include: international conferences, treaty negotiations, defense activities, studies of frequency requirements, allocation plans, studies of technical re- quirements and developments, coordination with other bureaus and offices of the Commission and other Government agencies relative to broadcast activities. Continuing efforts are also made by rulemaking procedures to aid in the orderly development of the several broadcast services, especially frequency modulation stations (FM), ultrahigh frequency television stations (UHF), and noncom- inercial educational stations-both aural and television. Special emphasis has been placed on these particular classes of stations because the full potential of these services has not yet been achieved. 7. How many employees are `involved in the program and in what general type of employment ca'tegories do they fall? Approximately 246. The personnel employed are electronic engineers, tech- nicians, lawyers, accountants, economists, secretaries, typists, and clerks. 8. What is the grade structure and how many super grades-quota and non- quota-are involved? The grade structure of the Broadcast Bureau is as follows: 4~S-18 1 GS-12 10 GS-~6 20 ~lS-17 1 GS-41 11 GS-5 37 CS-16 3 GS-10 1 GS-4 11 GS-15 27 GS-9 19 GS-3 21 OS-14 2~ GS-8 0 GS-2 2 GS-13 32 GS-7 24 GS-1 I There are five super grade positions: one GS-18; one GS-47; and three GS-16. They are all quota positions. 9. What capital equipment, such as ADP, if any, do you rely upon to fulfill this program? The Commission's computer is used in compiling ownership data, developing allocation plans for the TV and FM services, together with assignment of in- dividual proposals. The computer is also used in several technical studies related to the processing of AM applications. 10. Do you expect the expenditures or the `benefits of the program to grow appreciably in the future? The number of authorized stations (AM, FM, TV) has increased from 4,721 In 1957 to 9,841 in 1967, with an estimated increase to 10,894 at the end of fiscal year 1969. This represents a doubling of the service in 10 years. It is expected that this rate of increase will continue for the future with the added growth concentrated in the FM and TV services. Additional personnel will be needed as the workload increases due to the growth of the service. 11. At what level are the personnel responsible for the various parts of the ~ program coordinated to determine if the program as a whole is being efficiently carried out? Coordination of the broadcast program is handled in the Office of the Bureau 4II~hief, Deputy Bureau Chief, and the Assistant Bureau Chiefs. 12. Is there a continual program review within the agency, other than the annual budgetary review, to determine more effective and efficient ways to achieve these program objectives? There is a continuing review by the Office of the Bureau Chief and by the division chiefs within the Bureau to determine the most efficient and effective ways to achieve program objectives. In addition there is a semiannual cost reduction review and a quarterly review of the improvements in services to the public. Also the Commission on a regular basis reviews the objectives and problems of each operating bureau. 13. To your knowledge. does this program duplicate or parallel work being done by any other agency? No. 14. Is your organizational structure such that the program is bei'ng carried out most efficiently and effectively? PAGENO="0076" 72 The last detailed review of the organizational structure of the Bureau was made by the Commission in the latter part of 1965 and the early part of 1966 with- `out any organizational changes being made in the Bureau. It is believed that the present organization does result in the broadcast program being carried out effec- tively and efficiently. Internal reviews are also made by supervisory personnel at various levels to determine if organizational or other changes could possibly result in `a more efl~ective or efficient operation. 15. Are there `any outstanding GAO reports on this program? If so, what is the status of the GAO recommendations the report contains? There are no outstanding GAO reports on the broadcast program. 16. What significant problems, if any, are you facing in accomplishing the pro- gram objectives? One of the maii~ problems is that there are not enough employees to process applioations at a rate sufficient to assure a reasonable period of time for final action. The broadcast enforcement program and rulemaking activities also need to be strengthened to provide a more effective program in these areas. 17. Do you administer any grants, loans, or other disbursed funds related to this program? If so, is the size of your administrative staff commensurate with the magnitude of the outlays? No. 18. If your appropriations were reduced, how would you absorb the cut-by an overall reduction, or by cutting or curtailing certain activities? For years the Broadcast Bureau has operated with a minimum staff to handle its varied activities. If appropriations were reduced serious consideration would be given to suspending further grants for new stations or major modifications in the standard broadcast band, since this is the most mature of the several services administered by the Bureau. 19. If additional funds were available, what would you do with the new money? At the present time the Broadcast Bureau's Complaints and Compliance Divi- sion is seriously understaffed for conducting investigations of violations by broadcast licensees and for preparing investigative reports and agenda items based upon such investigations, so additional funds would be used to strengthen this activity. It would also be desirable to add additional personnel to application processing which would result in more expeditious action on the various types of applica- tions and in the hearing process in response to the increased workload expected. Some additional manpower would also be added in rulemaking in order to assure the orderly development of the various broadcast services in light of technical advances anticipated such as laser beams, satellites, and wire transmission. PROGRAM Iv: COMMON CARRIER 1. What is the nature~of and authority for this program? This program covers the regulation of the portion of the communications in- dustry which furnishes interstate and foreign communications services for hire to the public by use of wire, radio, or satellite facilites. The program includes: regulation of rates, services, accounting practices, and prescription of deprecia- tion rates of communications common carriers; licensing and certification of communications common carrier facilities including the licensing of all radio used in common carrier communications, intrastate as well as interstate, and prep- aration for `and participation in international telecommunication conferences. Authority for the program is contained in the Communications Act of 1934, as amended, `and the Communcations Satellite Act of 1962. 2. Who is the perSon primarily in charge of this program `at the operative level (`name and title)? Mr. Bernard Strassburg, Chief, Common Carrier Bureau. 3. How much money and capital equipment is available under thi's program for fiscal 1968? A total of $2,238,6l~6 is available under this program for fiscal 1968. There is no amount included for capital equipment. 4. Would you deseribe the output generated by this program? The output of this program comes under two broad categories, which are basically the establishment and maintenance of (1) adequate interstate and foreign services and facilities to meet all reasonable demands for expeditious I PAGENO="0077" 73 and efficient communications services, and for the purpose of national defense; and (2) just, `reasonable, and nondiscriminatory interstate and foreign communi- cations rates, classifications, regulations, and practices. These include reductions in domestic and international rates for communications services, certification of facilities for interstate and foreign communications use, and licensing of radio for all communications common carrier use, prescription of accounting practices and depreciation rates. 5. Can you quantify this output in any way? It is difficult to quantify the output of this program. However, some examples of the output of this program are (a) the recent reduction of interstate telephone rates estimated at $120 million per year, resulting from the first phase of the Commission's inquiry into the Bell System interstate telephone rates; (b) estab- lishment of "after 8" rateis and evening charges for station-to-station calls to Alaska from other continental States are expected to result in savings to the public of an estireated $1.4 million annually; (c) recently revised rate structures for wide area telephone service (WATS) are expected to re'sult in savings to the public of $5.6 million per year; (d) reduction of over $1 million annually in over- seas rates; (e) processing of approximately 15,000 radio applications for com- inunications common carrier use; (f) handling of petitions for rulemaking and requests for rule waviers; (g) excess of 1,600 letters to the domestic communica- tion carriers and `the public in connection with tariff inquiries or informal com- plaints; and (h) authorination by the Commisson `of over 700 projects annually to extend or supplement wire and microwave radio facilities. Other examples of regulatory activities which have resulted or are expected to result in direct benefit to the public are: An inquiry into the Regul'aitbry and Policy Problems Presented by `the Inter- dependence of Computer an'd Communication Services an'd Facilities is no'w in progress. The growing convergence `of computers anid communications has given rise to a number of regulatory and policy questions within the purview of the CommuniCations Act. These questions require `timely and informed resolution by `the Commission in order to facilitate the orderly development of the computer industry and promote the application `o'f `its technologies in such fashion as to serve the needs of the public effectively, efficiently and economically. `investigations into telephone company charges for channel service to CATY operators. T'his inquiry is expected to establish the legitimate role for communi- cations common Carriers in `the developing `CIATV and related wide variety o'f Wired communication services to the ho'me. The Commission ban before it several cases involving tariff rCstrictions on the subsCriber's use of attachments, or devices not furnished by the carrier; inter- connection of private systems wi'th those o'f communications Common carriers, and the entry of competing common carriers. The rulings in these cases could significantly affect the structure of the industry and the degree of competition that `is to exist in the `supply of equipment and `the provision of co'm~munication services. 6. Would you dCScri'be the `principal operations that are involved in producing this output? The principal operations involved are (a) hearings, which include the analy'ses of any data and testimony furnished by the parties, the cross-examination o'f ~ the wi'tnes's'es, and finally the preparation `and issuance of decisions in e'ach case; (5) negCtilations with the carriers with respect to rates or other matters; (c) analyses of t'he carrier's operating and f1n~nciai `data; (d) participation in inter- national `telecommunication's conferences; (e) rulemaking proceedings `and ac- tions on requests fo'r waivers of rules; (1) review of `applications for common carrier radio facilities and issuance of denial of permits; (g) review of `applica- tions to extend or supplement common carrier wire and microwave facilities and issuanCe or denial of certificates; (h) collaboration with regulatory or other Federal and State government `agencies on matters of mutual concern; and (i) prescription of depreciation rates and accounting regulations. 7. `How many employees are involved in the program and in wh'a't general type of employment eatego'r'ies do they fail? The average man-yCars `devoted to this progrfim'in the Common Carrier Bureau will be about 160 for fi~ca'l 1968. These employees are in `the following general employment categories: Attorneys, engineers, accountants, economists, publIc utilities ~pecialists, statis- ticians, application examiners, technicians, secretaries, elerk~sten'ograpbere, clerk-typists, `and file clerks. PAGENO="0078" 74 8. What is the grade structure arid how many supergrades-quota and non- quota-are involved? There are four supergra'des in the Common Carrier Bureau: One GS-18, one GS-17, and two GS-46's. The grade structrue for the remainder of the Bureau (about 16T quolta posi- tions) i~.5 as fellows: GS-15 20 GS-9 11 GS-4 1i~ GS-14 19 GS-8 2 GS-3 S 05-43 21 GS-7 12 GS-2 05-12 18 OS-El 10 OS-li 19 05-5 8 9, What capital equipment, such as ADP, if any, do you rely upon to fulfill this program? Limited use has been made of Commission computer facilities in studies for prescribing `depreciation rates for communications common carriers. Als'o several. computer programs have been written in `connection with the examination of evi- dence in major rate proceedings. Programs have been written for, and we expee~ to begin on July 1, 1968, the processing of `an estimated 4,000 renewal cei~tific~ates per year of radio for communications common carrier use. S'tu'dies are being undertaken directed toward use of electronic `data processing in compiling and publishing of statistical information related to the `communications common car- rier industry. 10. Do you ex'pect t'he expenditures or the benefi'ts o'f the program to grow appreciably in the future? Yes. Both `the expenditures and benefits of the program are expected to grow appreciably in `the future. 11. At what level are the personnel responsible for the various parts of the program coordinated to determine if the program `as a whole is being efficiently carried out? The common carrier program is coordinated at the Division Chief level with overall surveillance by the Bureau Chief. 12. Is there a continual program review within the agency, other than the annual `budgetary review, to determine more effective and efficient ways `to achieve these program objectives? The offices of Bureau Chief and the Division Chiefs have a continuing review to determine more effective and efficient ways to achieve the program Objectives. There are periodic reviews with the Commissioners and key Common Carrier Bureau personnel to discus's `the program objectives and bow they are being met. 13. To your knowledge, doe~s this program duplicate or parallel `work being done by any other agency? The primary responsibility of the FCC is for the establishment of reasonable and nondiscriminatory interst~te and foreign communications rates and services, the licensing and certification of domestic `and international carriers, and for the provision of communications services for emergency use and for the purpose of national defense. This program does not `duplicate or parallel work done by any other `agency. ~There is w'ork of an intrastate nature carried on `by certain State agencies, 14. Is your organizational structure such that the program is being carried out most efficiently and effectively? Yes, subject to the limitations of the resources available to us. There have been limited reorganizations of the Common Carrier Bureau to more effectively utilize our personnel. 15. Are there any outstanding GAO reports on this program? If so, what is the status of the GAO recommendations the report contains? No. 16. What significant problems, if any, are you facing in accomplishing the program objectives? The most significant problem we are facing in accomplishing the program ob- jectives is lack of sufficient resources to effectively regulate the rapidly expand- ing communications comipon carrier industry and to deal with the many and varied problems arising from this expansion, changing user needs and revolu- tionary advances in technology. A major factor affecting the size of staff required for effective common carrier regulation is the growth that is taking place in all areas of the industry. The domestic common carrier communication industry has been growing at a rate PAGENO="0079" 75 about three times as fast as the economy as a whole and this rate of growtlk is expected to continue. Revenues from domestic interstate communication serv- ices are running at a level in excess of $3 billion annually with a yearly increase of around 10 percent. The industry as a whole contributes 2 percent of the gross national product, employs more than 1 million people, increases plant invest- ment by more than $3.5 billion yearly and makes substantial and continuing improvements in communication technology. This expansion to meet the growth in demand for existing and new communica- tion services is attended by new and revised price structures, changes in cost of service characteristics which underlie the different services, increased com- petition between carriers and a high rate of construction of wire and radio fa- cilities which must be authorized by the Commission. Moreover, dynamic changes in communication technology and methods are creating new policy, ratemaking, licensing, and other regulatory problems in both the domestic and international fields. Because of budgetary limitations, the size of our staff has not kept pace with the increased tempo of activity and complexity of problems to be resolved. 17. Do you administer any grants, loans, or other disbursed funds related to this program? If so, is the size of your administrative staff commensurate with the magnitude of the outlays? No. 18. If your appropriations were reduced, how would you absorb the cut-by an overall reduction, or by cutting or curtailing certain activities? A reduction in appropriations would seriously impair our ability to meet the minimum common carrier regulatory obligations imposed by the Communications Act. Many of our individual programs are generated by outside activity over which we have little or no control. For this reason it would be impossible to meet a reduction in personnel through elimination or curtailment of one or two specific projects. The impact of any substantial reduction would be felt by all of our activties, resulting in serious delays in application processing and formal pro- ceedings and in less effective regulation generally of the communications industry. Over and above the impairment of our capacity and ability to complete the Com- mission's statutory obligations within reasonable periods of time, any cutbac1~ from present staffing would foreclose our capability to anticipate problems. We would be required to concentrate solely on urgent matters to the detriment of more important long range problems. 19. If additional funds were available, what would you do with the money? Increase size and expertise of staff to more effectively regulate the commfini- cations common carrier industry in the public interest. There is need to modernize regulatory processes through use of recent develop~ meats in economic and computational techniques, includi~ng use of econometrics, linear programing and electronic computers as an aid and support for rational rate and service regulation. There is also need for an organized, systematic program for the implementation of the essential requirement in section 218 of the Communications Act that the Commission keep itself informed as to technical developments ln wire and radio transmission of energy to the end that the bene- fits of new inventions and developments may be made available to the people of the United States. Absent our ability to conduct such a program, we are in m~ position to determine whether the public is gaining the economic and service p benefits from technological advances or whether the application of new tech- nology is being unduly withheld. Greater surveillance of the industry generally is needed to assure that the basic objectives of common carrier regulation are achieved. _______ PROGRAM v: SAFETY AND SPECIAL RADIO SERvICES 1. What is the nature of and authority for this program? This program covers the licensing, administration, and regulation of a wide variety of national and international uses of radio by persons, businesses, State and local government, and other organizations licensed to operate their own communications systems as an adjunct to their primary business or other activity~ The program also includes the compulsory use of radio for safety at sea purposes~ and certain classes of maritime radio stations which render communication serv- ice to others for hire. Authority under the Communications Act of 1t~34 as~ amended. PAGENO="0080" 76 2. Who is the person primarily in charge of this program at the operative level (name and title)? Mr. James E. Bt~rr, Chief, Safety and Special Radio Services Bureau. 3. How much money and capital equipment is available under this program for fiscal 1968? The total funds available for this program for fiscal 1968 is $2,110,042. Of this total sum, $12,000 is for capital equipment. 4. Would you describe the output generated by this program? The output of this program can be categorized into four general areas as fol- lows: (a) rulemaking proceedings which usually result in changes and additions to the Commission's rules and policies; (b) the issuance of radio station licenses; (c) enforcement proceedings against station licensees and operator permittees usually resulting in the revocation of a license or impositon of monetary for- feiture; (d) responding to Inquiries from the general public, applicants and station licensees, user groups and manufacturers, and from Congressmen con- cerning these radio services. 5. Can you quantify this output in any way? The most precise quantification concerns station applications processed. This figure has grown consistently over the past 20 years; in fiscal year 1967, 503,711 applications in these services were processed. Every year several dozen petitions for rulemaking and rulemaking proceedings, as well as requests for rule waivers, are handled. Enforcement cases handled each year exceed 1,000. The myriad of inquiries answered by letters and preprinted explanatory notices and bulletins are in the range of thousands, but we have no precise count thereof. At the close of fiscal 1967, there were over 1,640,000 radio stations licensed in these services. 6. Would you describe the principal operations that are involved in producing this output? The principal Operations are as follows: Rulemaking, waivers of rules, actions on applications for radio station licenses and operator permits, adjudicative hearings, enforcement activities, legislative and defense activities, international conferences and participation in treaty work, studies of frequency requirements, allocation of frequencies and the development of frequency assignment plans, studies of technical requirements for equipment, collaboration and coordination with Federal and State government agencies concerning these serVices, and advising and assisting industry and user groups interested in these services. 7. How many employees are involved in the program and in what general type of employment categories do they fall? The average man-years devoted to this program in the Safety and Special Radio Services Bureau will be about 162 for fiscal year 1968. These employees are in the following general employment categories: Electronic engineers, attor- neys, regulatory spcialists, application examiners, clerical assistants, secretaries, clerk-stenographers, clerk-typists, file clerks, and clerks. 8. What is the grade structure and how many super grades-quota and non- quota-are involved? There are two super grades in the Safety and Special Radio Services Bureau; namely, one GS-17 and one GS-16. The grade structure for the remainder of the Bureau (about 165 quota positions, varying numerically in grades, from time to time as personnel come and go) is as follows: GS-15 9 GS-9 16 GS-3 15 GS-14 ~__ 13 GS-7 20 GS-2 3 GS-13 18 GS-6 24 GS-1 1 G8-12 7 GS-5 14 GS-11 6 GS-4 19 9; What capital equipment, such as ADP, if any, do you rely upon to fulfill this program? Applications in the aircraft, ship, citizens, and amateur radio services are processed in part and recordkeeping thereon is maintained by a computer. Also some application records are maintained by microfilming methods. 10. Do you expedt the expenditures or the benefits of the program to grow appreciably in the future? Nearly all of the safety and special radio services have grown steadily for approximately the past 20 years. The most notable growth services have been the aviation, mari~ie, public safety, industrial, citizens, and amateur radio services. It is expected that these growth patterns will continue indefinitely and more personnel will be needed to administer these services. The land mobile PAGENO="0081" 77 services (covering public safety, industrial, and land transportation radio sérv-~ ices) have grown so rapidly that a frequency congestion problem and a frequency shortage problem exist. The resolution of these problems will require more expenditures. 11. At what level are the personnel responsible for the various parts of the program coordinated to determine if the program as a whole is being efficiently carried out? Coordination for the entire safety and special program is handled in the Office of the Bureau Chief. The coordination is handled by the Bureau Chief, the Deputy Bureau Chief, and the Assistant Bureau Chief. 12. Is there a continual program review within the agency, other than the annual budgetary review, to determine more effective and efficient ways to achieve these program objectives? There is a continuing review by the Office of the Bureau Chief and by the five division chiefs within the Bureau to determine more effective and efficient ways to achieve these program objectives. In addition, there is a semiannual cost reduction review and a quarterly review of improvements in services to the public. 13. To your knowledge, does this program duplicate or parallel work being done by any other agency? No. 14. Is your organizational structure suCh that the program is being carried out most efficiently and effectively? In May of 1966, the Safety and Special Radio Services Bureau was reorganized for the precise purpose of achieving efficiency andeffectiveness. It is believed that the reorganization has proved beneficial. 15. Are there any outstanding GAO reports on this program? If so, what is the status of the GAO recommendations the report contains? There are no outstanding GAO reports on this specific program. 16. What significant problems, if any, are you facing in accomplishing the program objectives? The major problems in achieving the program objectives are the frequency~ congestion and frequency shortage problem for the land mobile services and the high level of violations by station licensees which interferes with efficient use of the radio spectrum. A resolution of both of these major proJ~ems would require significant increment in qualified manpower. 17. Do you administer any grants, loans, or other disbursed funds related to this program? If so, is the size of your administrative staff commensurate with. the magnitude of the outlays? No. 18. If your appropriations were reduced, how would you absorb the cut-by an overall reduction, or by cutting or curtailing certain activities? For a number of years, the Safety and Special Radio Services Bureau has been functioning with a very minimum staff, attempting to handle urgent problems as they develop. It would be most difficult to function with any reduction in this staff. If, however, a reduction were required we would feel forced to make the cuts in those areas which would n~t create an immediate detriment to the public service we render, especially the many radio services used for the safety of life and property. Thus, we could not reduce processing radio station applications ~ nor could we fail to respond to inquiries from the public. We would be forced to cut our rulemaking and enforcement activities even though this would adversely affect the program in its 1ong~range objectives. 19. If additional funds were available, what would you do with the new money? The new money would be used to resolve the land mobile frequency problems and any remaining funds would be used to increase the level of enforcement activity. ________ PROGRAM vi: COMMUNITY ANTENNA TELEVISiON 1. What is the nature of and authority for this program? This program is designed to effect a careful integration of CATV into the structure of free, broadcast television. CATV, with its capacity for picking up television signals off the air and for originating its own programing, permits a wide diversity of television offerings. The Commission has made the judgment PAGENO="0082" 78 that this new te4hnology should supplement the existing structure of local broad- cast television stations. This decision is implemented by a number of regulations which limit CATV entry with distant signals into the more populous television markets and which require that CATY systems in all marke~ts protect existing stations by carrying the programs of local stations and by not duplicating their programs with signals imported from distant sources. The authority fo~ this pro~ gram is the Communications A~t of 1934, as amended. 2. Who is the person primarily in charge of this program at the operative level (name and title)? Mr. Sol Schildhause, chief, CATV task force. 3. How much money and capital equipment is available under this program for fiscal 1968? The total funds available for this program for fiscal year 1968 are $528,005. Of this amount, $5,000 represents capital equipment. 4. Would you describe the output generated by this program~ Generally, the funds spent for the CAPV program yield: (a) an orderly resolution of conflicts between cable television and broadcast television, and (b) a program designed to accommodate the new technology of cable into the existing TV broadcast framework so as to provide the most efficient, comprehensive, and varied communications service possible. 5. Can you quantify this output in any way? In quantifying this outpet, the folilowing Will serve. With respect to (a), the following statistics reflect the numbers of cases processed: Top 100 mairket petitions- for waiver Number filed Number processe&~.. 125 Number pending -.. Petitions for special relief Number filed Number processed Number pending.. 340 Uommuni4~y a~ittenna relay station ~ppli~ütio~s Number filed Number processed 47 Number pe~iding 46 Additionally, 55 hearing proceedings flowing from CATV Task Force activity are now pending. With respect to (b), the following rulemaking proposals and inquiries have been inaugurated: Docket 17957.-~A study to determine whether educational television signals should be exempted from the top-100-market rule. Docket 17438-A study to determine whether the top-100-market rule should be modified to insure carriage of UHF signals from markets whose VHF signals must be carried. Docket 17371.-A study to determine w~hether CATV development has reached a point where a question is raised as to whether its ownership is consistent with other types of communications ownership. Docket 17505,-A questionnaire sent `to CATV operators and television broad- casters in an effort to determine the effectiveness of the present carriage and program exclusivity rules, as well as any practical difficulties which may have developed. 6. Would you describe the principal operations that are involved in producing this output? The principal operations are as follows: the processing of application~ for CAR' stations, the working up of petitions for Waivers of rules, action upon requests for special relief, the institution of ~nforcement proceedings, adjudicative hear- ings,, rulemaking and the shaping of long-range policy and planning, the framing ~ antenna relay. PAGENO="0083" 79 of legislative programs, studtas of technical and equipment advances, inquiries into the growth and development of the industry, advising and assisting industry and user groups involved in the CATV industry, collaboration and coordination with state and other local agencies and with other federal instrumentalities concerned with the development of CATY services. 7. How many employees are involved in the progran~ and in what general type of employment categories do they fall? The average man-years devoted to the CATV `program during fiscal year 1968 will have been about 41. These employees are in the following general employment categories: attorneys, electronic engineers, regulatory specialists, application examiners, clerical assistants, secretaries, clerk-stenographers, clerk-typists', file clerks. 8. What is the grade structure and how many supergrades-quota and non- quota-are involved? Only one supergrade-tbe grade GS-16 Chief of the CATV Task Force-is specifically earmarked for the CA'TV program. The Broadcast Bureau, the Office of Hearing Examiners, the Review Board, and the Office of Opinions and Review contribute substantially to this program and these offices have supergrade employees. In this response, however, it is assumed that only the Chief of the CATV Task Force is actively engaged. The response on grade structure for this activity is confined to the CATV Task Force and is as follows: 08-16 1 08-11 1 GS-4 1 408-9 3GS-3 1 GS-13 2 GS-7 1 OS-12 2 GS-6 9. What capital equipment, such as APP, if any, do you rely upon to fulfill this program? In December 1966 the Commission made a questionnaire survey of CATV activity, signals carried, and ownership'and cross ownership. The collation of the responses was accomplished by means of AD?. But that is the only reliance upon capital equipment that the CATV program has had. 10. Do you expect the expenditures or the benefits of the program to grow appreciably in the future? Yes. QA~TV, which was for a decade or more a service business involved with brit~ging television signals to the small towns and rural areas remote from adequate, off-the-air television service, has discovered its potential for service to the larger and biggest cities in the country. It has also discovered the potential of its technology for service other than the relaying of television programing created by others. Nearly all forecasts expect that OAT'V will grow dynamically and that the expenditures and the benefits from a regulatory program will grow at a very accelerated pace in the future. 11. At what level are the personnel responsible for the various parts of the program coordinated to determine if the program as a whole is being efficiently carried out? Coordination for the Commission's CAT'V programs iS handled in the office of the (~thief of the CA?J~V Task Force `but this office cooperates, `and coordinates its activities, with the Chief of the Broadcast Bureau, the General Counsel, and the Chief Engineer, and the Chief of the Common Carrier Bureau. ` 12. Is there a continual program review within the agency, other than the annual budgetary review, `to determine more effective and efficient ways to achieve these program objectives? There is a continuing review by the Chief of the CATV Task Force and by his subordinates and associates `t'o determine more effective means for achieving program objectives. There `are periodic meetings with the Oom,miss,i~oners and with the Commission's other principal staff offices. Additionally, there is a semiannual cost reditc'ti'on review and `a quarterly review of improvements' in service to the public. 13. To your knowledge, does this program duplicate or parallel work being done by any other agency? No, but other agencies of Government-such as the President's Task Force o~ ~ommiinica'tion's, `the Department of Oom'm'erce, HEW, `and others-have an interest in the development of the technology and of its' impact upo'n their programs. 14. Is your organizational structure such that the program i's being carried out most efficiently and effectively? PAGENO="0084" 80 The OATV Task Force was created in September 19(E6 for the specific purposes of administering the Commission's OATV regulatory program. Although the office, the regulatory program, and the industry itself, are in the early stages of the evolution of a substantial new force in communications it Is believed that the OAPV Task Force for this initial phase has proved out its effectiveness. 15. Are there any outstanding GAO reports on this program? If so, what Is the status of the GAO recommendations the report contains? There are no ez~lsting GAO reports on this specific program. 16. What signiflcant problems, if any, are you facing in accomplishing the program. objectives? Official information on the dimensions an'd composition of the industry is skimpy. It is believed that it will be necessary to initiate a permanent program of industry reporting and information gathering. Additionally, the backlogs in unresolved conflicts between OATV systems and broadcasters remain uncom- forta~bly large. Inéreasing effort must be devoted to reducing these inventories to manageable levels. Also, current regulations are an interim measure designed to maintain a rea~onable status quo until reliable information is developed on the interaction between CATV and broadcast TV. The Commission must begin now to plan for the next phase. 17. Do you administer any grant, loans, or other disbursed funds related to this programii? If so, is the size of your administrative staff commensurate with the magnitude of the outlays? The CATV Task Force does not dIsburse funds and the size of the administra- tive staff is not related to this circumstance. 18. If your appropriations were reduced, how would you absorb the cut-by an overall reduction, or by cutting or curtailing certain activities? The OATV Task Force has been functioning with a skeleton staff. M~st aSpects of the program are being operated at the bare minimum level of activity. A cut in fund~, as a resnit, would have to be comp~nsated for not by at~ across-the- board equivalent reduction in pace but by the elimination of ~*tlre phases. It wotild be expected, for example, that rulemaking and enfor~emënt activties. would have to be dispensed with completely. 19~ If additional funds were available, what Would you do with the new money? New funds would be put to work in the development of a long-range ~rogram and, for the near term, in the elimination of processing backlogs. PROGRAM VII. FIELD ENGINEERING AND RNFORQEMENT 1. What is the nature of and authority for this p~ogram? Authority for th~e program is contained in the Communications Act of 1934, as amended; Communications Satellite Act of 1962; treaties and Executive agreements to which the United States is a party. The nature of the program administered by the Field Engineering Bureau concerns the enforcement of telecommunications laws and regulations, includjng inspections; investigations; monitoring and direction finding; engineering; commercial radio operator examination, licensing and sanctions; processing of applications pertaining to painting, marking, and place~ent o~ antenna towers; and furpishing direc- tion finding aid to a~rcraft and ships in distress. 2. Who is the person primarily in charge of this program at the operative level (name and title)? Mr. Curtis B. Plummer, Chief~ Field Engineering Bureau. 3. How much money and capital equipment is available under this program for fiscal year 1968? Expressed in dollars the total is $5,116,076, with $218,000 allocated for capital equipment. 4. Would you describe the output generated by this program? The output of the program ma~ be generally described as follows: (a) The enforcement of treaties, laws, and regulations pertaining to tele... communications through inspections, investigation, and monitoring. (b) Rulemaking proceedings and administration pertaining to the marking, lighting, and placement of antenna structures. (c) Rulemaking and administration pertaining to commercial radio operator matters including e~amination and licensing. PAGENO="0085" 81 (d) Enforcement pertaining to commercial operator licensees involving pos- sible revocation of a license or imposition of monetary forfeitures. (e) Responding to inquires from the public, applicants, station licensees, user groups, manufacturers, and from congressional level concerning all radio services authorized by the Commission. 5. Can you quantify this output in any way? The output of this program may be quantified in terms of service to the user puhlic. In 1967 there were 39,986 interference complaints received; 1343,335 corn- mercial operator licenses issued; 29,199 antenna marking and lighting applica- tions processed; and thousands of telephone inquiries answered. With res~pect to enforcement of the Commisison's rules and regulations, extensive written statistical infotmation has been supplied in the material previously submitted. 6. Would you describe the principal operations that are involved in producing this output? The Field Engineering Bureau performs all Commission engineering activi- ties in the field relating to radio stations including: station inspections, surveys, monitoring, direction finding, signal measurement and investigations; enforce- ment activities performed in the field dealing with the suppression of interference and the inspection of devices possessing electromagnetic radiation character- istics; and such other field inspections or investigations related to the perform- ance of radio stations as might be required by the Commission,, or the bureaus and staff offi~es. The Bureau also performs the following 1~unctions: (a) Develops rules and regulations related to such classes of commercial operators as may be required in the various radio services. (b) Prepares and conducts commercial radio operator examinations and issues commercial operator licenses. (c) Conducts amateur examinations, and upgrades amateur licenses in situa- tions where the upgrading can be accomplished by endorsements. (d) Develops rules to govern the painting, lighting, and placement of antenna structures and processes data with respect to proposed new or modified antenna structures to determine whether such proposed construction will create hazards to air navigation. (e) Represents the Commission and participates in interagency committees and in international conferences with respect to matters for which the Bureau is responsible. (1) Enforces and administers the Commission's rules relative to equipment interference and related problems involving Industrial, scientific, and medical service devices and incidental and restricted radiation devices which emit radio- frequency energy and are potential sources of interference in the radio spectrum. (g) Participates in telecommunication activities related to the national de- fense as directed by the Commission. 7. How many employees are involved in the program and in what general types of employment categories do they fall? On an annual basis (average) there are 400 personnel, including engineering, legal, administrative, technical, stenographic, clerical, and custodial employees. 8. What is the grade structure and how many supergrades-quota and non- quota-are involved? Field Engineering Bureau has two supergrade positions i~ of June 21, 1968, one GS-17 and one GS-16. Its remaining staff is comprised of the following grade structures, totaling about 400 positions: GS-15, four; GS-44, eight; GS-13, 53; GS-12, 26; GS-11, 66; GS-10, four; GS-9, 50; GS-8, four; GS-7, 53; GS-6, 17; GS-5, 64; GS-4, 19; GS-3, 19; GS-2, four; WB-13, one; WB-6, one; WB-5, three; and WB-4, four. The Field Engineering Bureau has no nonquota positions. 9. What capital equipment, such as ADP, if any, do you rely upon to fulfill this program? In fulfilling the FEB program the bureau uses the Commission's APP equipment for printouts of license data. In addition the field offices and monitor- ing stations employ radio receivers, direction finders, and a wide variety of spe- cialized instrumentation for measuring the technical characteristics of radio transmitters and their emissions. Included are a number of highly specialized mobile installations necessary for making measurements and observations in connection with mobile enforcement operations. 10. Do you expect the expenditures or the benefits of the program to grow appreciably in the future? PAGENO="0086" 82 It is expected that additional funds will be required for equipment, personnel, and travel due to the continuing growth in the number of licensed radio stations and electronic devices. As the radio spectrum becomes more densely populated radio interference will increase. Such an increase must be accompanied by a proportionate increase in the FEB's investigatory and monitoring functions in order to give corresponding benefits of good radio communications to the users. 11. At what le~e1 are the personnel responsible for the various parts of the program coordinated to determine if the program as a whole is being efficiently carried out? The Bureau Chief and Deputy Bureau Chiefs, grades GS-17 and GS-16, respectively. 12. Is there a continual program review within the agency, other than the annual budgetary review, to determine more effective and efficient ways to achieve these program objectives? There is a continual review program within the agency, other than annual budgetary review, to determine more effective and efficient ways to achieve program objectives of the Field Engineering Bureau. 13. To your knowledge, does this program duplicate or parallel work being done by any other agency? No. 14. Is your orgnnizatior~a1 structure such that the program is being carried out most efficiently and effectively? Yes. 15. Are there any outstanding GAO reports on this program? If so, what is the status of the GAO ~recommendations the report contains? There are no outstanding GAO reports to Congress on the Field Engineering Bureau program. 16. What signil~cant problems, if any, are you facing in accomplishing the program objectives? Sufficient funds are not available to do the necessary enforcement. An example is our inability to devote sufficient manpower to the Citizens Radio Service which has brought about misuse of the frequencies and operation on frequencies not authorized to citizens radio stations. 17. Do you administer any gra~nts, loans, or other disbursed funds related to this program? If so, is the size of your administrative staff commensurate with the magnitude of the outlays? The Field Engineering Bureau does not administer any grants, loans, or other disbursed funds related to its program. 18. If your appropriations were reduced, how would you absorb the cut-by an overall reduction, or by cutting or curtailing certain activities? If our appropriations were reduced we would propose to absorb the cut by (a) reducing overall service to the public by reduction of investigations of interfej-ence complaints to home television receivers; (b) reducing administra- tion of operator liCense examinations; and (e) possible reduction in inspections consistent with circumstances at the time. 19. If additional funds were available, what would you do with the new money? If additional funds were available the Field Engineering Bureau would in- crease enforcement of the Citizens Radio Service, increase service to the public, and speed up our service in monitoring stations in search and rescue operations. PAGENO="0087" APPENDIX B.-CIIANGES TO FREQUENCY ALLOCATIONS SINCE 1946, FEDERAL COMMUNICATIONS COMMISSION, MAY 1, 1968 Prior to World War II, international agreement bad been reached as to the allocation of frequencies between 10 kllz and 30 Mhz. This range of frequencies was referred to as the "usable" spectrum and as early as 1945 some services in the United States were already encountering congestion in the bands to which they were assigned. Technology advanced rapidly as a result of the war, enabling the upper limit to be extended from 30 MHz to 10,500 MHz (10.5 GHz) at the International- Radio Conference held by member governments of the International Telecom- munication Union in Atlantic City in 1947. This extension of the frontier was accomplished with two major purposes in mind, that is, to enable those services. already established to expand still further a.nd to accommodate new services that might develop. Services were encouraged to go to these higher frequencies. A listing of the major allocation proceedings taking advantage of this and later extensions follows: Docket Date adopted Description or caption 6651 May 1945 Some changes in existing land mobile allocations made however, greatest impact was in. the higher regions of the spectrum. Provision made ior the land mobile radio services. in the bands 25-50 Mhz, 104-108 MHz, and 152-162 MHz. The band 460-470 MHz was set aside for the new Citizens Radio Service. Other land mobile radio services were given frequencies for the first time including the Railroad Radio Service, the Limited Private Radiotelephone Service, a~d the General Mobile Radio Service (bus truck, taxi- cab, and common carrier). In a 3d report in this proceeding the Commission decided to permanently locate FM broadcasting in the band 88 to 108 MHz. This action necessitated a shift in the land mobile allocation between 104 and 108 MHz to the alternative band 72-76 MHz. Note: In this proceeding the Commission first enumerated the basic allocation principles, still applied today, to be certain the public receives the maximum benefit from the electromagnq~c spectrum. These principles are: To examine each request to determine whether the service really requires the use of radio or whether wire lines are a practicable substitute. With an acute shortage of frequencies, it is not in the public interest to assign a portion of the spectrum to a service which can adequately and feasibly use wire lines instead of radio. The Com- mission's determination is not limited to technical considerations, but also takes into account economic and social factors as well as considerations of national policy. All radio services should not be evaluated alike. Radio services which are neces- sary for the safety of life and property deserve more consideration than those services. which are more in the nature of convenience or luxury. To take into consideration the total number of people who will probably receive benefits from a particular service. Other factors being equal,the Commission attempts to meetthe requests of those services which propose to render benefits to large group of the population rather than to those services which aid relatively small groups. To take into consideration the proper place in the spectrum for the service, based upon engineering considerations of the propagation characteristics in different por- tions of the spectrum. Certain frequencies can be used more effectively by services requiring comparatively long range communications, while others are better suited for short range communications. In determining competing requests of 2 or more services for the same frequencies~ where 1 or more of the services involved has already been assigned frequencies on a re~utar basis, the Commission gives careful consideration to the number of trans- mitters and receivers already in use, the investment of the industry and the public~ in equipment, and the cost and feasibility of converting the equipment for operation~ on different frequencies. (88) PAGENO="0088" 84 Docket Date adopted Description or caption No. 8487 May 1948 Shared use of television channels for fixed, mobile, and Government operation was pro- hibited; land mobile use of frequencies between 72 and 76 MHz abolished; and TV channel 1(44-50 MHz) was reallocated to the land mobile radio services to compensate for losses under (1) and (2) above. 8558 April 1949 "General mobile radio service." 8965 - -- do "Allocation of frequencies between 25 and 30 MHz." 8972 _.~do "Allocation of frequencies between 44 and 50 MHz and between 152 and 162 MHz." 8973 ___do "Allocation of frequencies between 72 and 76 MHz." 8974 ....__do "Allocation of frequencies between 450 and 460 MHz." 10323 May 1953 Amendment of the rules and regulations with respect to the allocation of frequencies between 450-460 MHz to make possible greater flexibility in their assignment and use by a majority of the services involved. This was achieved by providing greater separation between the frequencies assignable to a particular service. 11253 September 1957..... Amendment of the rules and regulations to reduce separations between assignable fre- quencies in the 25-50 MHz and 152-162 MHz bands and establish narrow baud technical standards. Thus from a practical viewpoint, the number of channels available to the land mobile radio services was doubled. 11993 February 1958 Amendment of the rules and regulations governing the Land Transportation Radio Services, to make additional frequencies in the bands 27.23-27.28 MHz and 450-460 MHz available for assignment. 11994 - -- do Complete revision of the rules and regulations governing the Citizens Radio Service, and reallocation of frequencies in the range 26.96-27.23 MHz from the Amateur Radio Service to the Citizens Radio Service. This proceeding established the Class "D" Citizens Rajio Service. 11991 July 1958 Amendment of the rules and regulations governing the Industrial Radio Services, to delete, modify, and create services, and to effect changes in the availability of frequencies (split-channel rulemaking). The Business, Manufacturers, and Telephone Maintenance Radio Services was created. 11992 do Amendment of the rules and regulations governing the Land Transportation Radio Services, to implement "channel splitting" in the frequency range 152-162 MHz, and to suballo- cate the new frequencies thus made available. 11990 October 1958 Amendment of the rules and regulations governing the Public Safety Radio Services to modify existing services, create new services, and effect changes in the availability of frequencies (split-channel rulemaking). 14139 November 1961.... Amendment of the rules and regulations to make available certain frequencies in the Fire Radio Service for coordinated operation with a district, county, or State; and to make available additional "intersysteni" frequencies for coordinated operations in an inter- district, intercounty, or interstate level. 14502 May 1963 Amenfiment of rules and regulations of the Power, Petroleum, and Forest Products Radio Services to allocate additional 152-162 MHz band frequencies to the Power Radio Service. 14503 October 1963 Amendment of rules and regulations regarding the allocation of assignable frequencies in the 25-42 MHz band. 12169 March 1964 Amendment of rules and regulations tp reduce separation between assignable frequencies in the 42-SO Mlix band and to exchange spectrum space between Government and Non-Government which was necessary fer ionospheric forward scatter. 11997 May 1964 Statutory inquiry and hearing into the allocation of frequencies to the various nongovern. mental services in the radio spectrum'between 25 and 890 MHz. 14990 July 1964 Amendment of rules and regulations governing the Special Industrial Radio Service to make available, for assignment in Alaska, Hawaii, Puerto Rico and the Virgin Islands, certain Land Mobile Service frequencies above 152 MHz. 15534 November 1964~~ Amendment of rules and regulations to provide additional frequencies for the Business Radio Service In Puerto Rico and the Virgin Islands. 16182 February 1966 Amendment of industrial radio services rules and regulations to reflect the availability of frequencies in the 150.8-152 MHz band for assignment to operational fixed stations outside the continental limits of the United States and its adjacent waters. 16776 August 1967 Amendment of rules and regulations with respect to the 150.8-162 MHz band to allocate presently unassignable spectrum to the land mobile services by adjustment of certain of the band edges. 16777 do Amendment of rules and regulations to allocate certain unassigned band-edge frequen- des in the 150.8-162 MHz band. 13847 February 1968 Amendment of rules and regulations to reduce the separation between the assignable frequencies in the 450-470 MHz band, and to prohibit the use of such frequencies by fixed stations other than control stations used for the secondary control of mobile relay stations. Sl~rce a fence can~wt be erected to confine radio signals within the geographical boundaries of any given country, the allocation of frequencies to the several services must be coordinated internationally. This is accomplished by means of radio conferences held under the aegis of the International Telecommunication Union, an instrument of the United Nations. Much effort has been put forth by the U.S. delegations to these international conferences and we have been successful, for the most part, in our negotiations. Much of the makeup of the international table of allocations is the result of proposals we have made and their subsequent acceptance by `the international community. The preparation and the presentation of our position papers at these confer- e~ces are only a part of the total effort expended. Upon ratification of the agreements reached by the member nations of ITU at these conferences, rule- PAGENO="0089" 85 making proceedings, such as those just enumerated, must be instituted to bring our national table of allocations into accord. The following is a listing of land- mark international conferences held since 1947 which have bad considerable impact on the table of allocations: International Radio Co~,ference, AtlantLc City, N.J., 1947~-The main results of the Conference were: (1) adoption of a new frequency allocation table (de- tails below) ; (2) the formation of the Provisional Frequency Board to prepare a new and engineered international frequency list; (3) the establishment of the International Frequency Registration Board; (4) the reorganization of the International Radio Consultative Committee; and (5) the revision and strength- ening of the many International regulatory provisions regarding radio. Revision of table of frequency allocations between 10 and 2850 kiloHertz 2850 and 30,000 kiloHertz (30 megaHertz), and 30 and 10,500 megaHertz. Specifically, the selection of 90-110 kiloHertz for long-distance navigational aid, recognition of medium-frequency loran, selection of allocations for the marine-beacon band on a worldwide basis, widening of the medium-frequency broadcasting band in the American region, designation of 2182 kiloHertz for distress and calling purposes in the maritime mobile service provision for both ship and coast station telegraphy in the 2 megaHertz band in American region, allocation of frequencies in the 2850-30,000 kiloHertz band to: aeronautical mobile, amateur, broadcasting, fixed and maritime mobile with provision for industrial, scientific, and medical pur- poses. Allocations in the frequency range 30-10,500 megaHertz were accorded the broadcasting, fixed, mobile, meteorological, amateur, aeronautical navigation services and industrial, scientific, and medical service. The conference agreed not to bind the nations to any allocations above 10,500 megaHOrtz. Ecetraordinary Administrative Radio Conference, Geneva, switzerland, 151 The major accomplishments of this Conference follow: (1) Provision made for the approval of assignment lists for the bands between 14 and 4,000 kiloHertz; (2) provision made for a voluntary movement into the Atlantic City bands of assignments for those services approved: (3) approval given to plans for the aeronautical mobile services; (4) an allotment plan for the coastal telephone service approved, and an assignment plan for the coastal telegraph service perfected and approved; and (5) provision made for the move- ment of assignments and fixing of effective dates for bands between 55 and 2,000 kiloHertz in ITU region 2. Provision was made for the preparation of draft plans for the high-frequency broadcasting service by the International Frequency Registration Board. In addition, the International Frequency Registration Board was charged with new duties, including (1) assisting administrations in the transfer of their frequency assignment plans; (2) compilation and maintenance of a new master radio frequency record; (3) preparation of a draft international frequency list based upon in-band assignments made during the voluntary adjustment period for the Fixed, Land Mobile, and Tropical Broadcast Services; and (4) prepara- tion of reports and reviews of progress toward implementation for the formation of national administrations and the Administrative Council. The International Radio Conference, Geneva, ~wit~erland, 1959 Among the important actions of. the Conference was the revision of the table of frequency allocations o~ radio spectrum space to various radio communica- tions services. These include both domestic and international radio telegraph and telephone services, aeronautical and maritime services, aids to navigation ~ both for air and sea, meteorological aids, broadcasting, amateurs, standard fre4uency transmissions and standard time signals, radio astronomy and space research. The allocation of radio frequencies for space research and radio astronomy is the first in the history of international radio treaties. The Conference also recognized the most recent developmentS in radio spec- trum usage. The allocation of radio spectrum space was extended to 40,00~ MHz. `The previous limit was 10,500 MHz. This means the Conference decided that the useful radio spectrum space covered by international agreement should be increased by three times the amount p~evionsly agreed to. Another important accomplishment of the Conference was the agreement to accept new administrative procedures to enhance the e~ciency of operation of stations using frequencies within the radio spectrum space allocated to each service. These new procedures were designed to facilitate the `accommoda- tion of the increasing demands for additional radio service. These portions of PAGENO="0090" 86 the radio specti~um which are most useful for long-distance international corn- Inunications, in~luding transoceanic telegraph and telephone service, overseas aeronautical se~vlce and maritime telephone and telegraph as well as Interna- tional radio broadcasting, are heavily overloaded. The new procedures were agreed upon to Improve the efficiency of these long-distance uses of radio. Another impdrtant provision designed to improve the efficiency of radio service was the agreement to use modern techniques. This was accomplished by worldwide adoption of more strict minimum technical performance require- ment~ for `radiO equipment. These more modern requirements have been of assistance in ~ecommodating the ever-increasing demands for radio `spectrum usage. .Ewtraordinary 4clministrative Radio Conference, Geneva, ~wit~erland, 1963 The main task~ of the Conference was the allocation of radio frequencies for outer space activities and tl~e consequent revision of *the table of frequency allocations. Since the Geneva Radio Conference of 1959, the allocation of an ~adequate number of frequencies for Quter space had become an urgent task, due to the rapid growth of activity in space. The Conference allocated, on a shared or exclusive basis, frequencies totaling 6076.402 MHz for the various kinds of space services `and for radio astronomy, 2800 MHz of which are for communication satellites on a shared `basis with other services. Thus, while at the 1959 Conference only about 1 percent of the table of frequency allocations was made available for outer space, about 15 percent has now been made available. The Conference also adopted a number of revisions and additions to other parts of the radio regulations, mainly concerned with general rules for the assignment and use of frequencies; notificatbSn and recording of frequencies in the Master International Frequency Register `which is maintained by the International Frequency Registration Board (IFRB); the identification of stations; service `documents; terms and definitions; and `special rul'e's relating to particular services. These revisions and additions were necessitated to make provision for the `space services. In addition, the Conference adopted a number of important resolutions and recommendations One of these deals wit'h the future `action to be taken by the ITU in the light of future developments in space radio communications. It recom- mends th'at members and `associate members of the Union make data available to the appropriate permanent organs of the IT'U; that `th'e administrative coun- `ci'l should annually review the progress o'f administrations in space radio `communication's an'd should, in the light of this review, recommend the con- vening of an Extraordinary Administrative Conference `at `a future `dat'e to work out further agreements for the international regulation of the use of the frequency `bands allocated by the present `Conference; and `that notification and registration of frequency assignments to space service'si shall, until revised by a future Conference, `be effected `in `accordance with the procedures a'dopted by the present Conference'. One of the most important resolutions' deals wi'th space vehicles in distress `or emergency, noting that the frequency of 20,007 kHz had been set aside by `the Conference for `this purpose and resolving that for the time `being the "distress signal used `by ships or aircraft (`SOS in radio telegraphy and MAYDAY In radio `telephony) should also be used by spacecraft. `The Eatraordinary Administrative Radio Conference for the Aeronautioal Mobile Radio ~ervicer-Geneva, ~w'itzerland, 1964 `and 1966 The `purpose of the Conference w'as to drit,w up a new world plan for high frequency radio communications for the use of aircraft flying on regional, na- tional and international civil air routes. The first seSsion `determined the tech- nical and operating principles which were `to serve as a `basis fo'r th'e prepara- tion of the plan. In the period between the two sessions, the Telecommunica- ~tions Administrations of the Member Countries of the ITU had submitted sta- `ti~tical data on aircraft operation to the union for analysis. Radio channel's were redistributed to meet `the new conditions pose'd `by civil aviatIon. In addition, the plan included rules for the use of new transmitting techniques (for example single sideband emission) while the boundaries of the areas to which the frequencies are allotted have been brought up to date. The conference adopted a certain `number `of recommendations and `resolutions, -one of them concerning the protection' against harmful interference `of the high :frequency band allocated exclusively to the aeronautical mobile service. Two PAGENO="0091" 87 TesolutiOn~ relate to the use of VHF for the aeronautical service and the broad- ~casting of meteorological information for aircraft in ~light. Another resolution relates to the gradual replacement by ,admipistrati'onS, as soon as possible, of ~double sideband by single sideband techniqi*e., ~inally, the conference, taking note of the possibilities offered by space radio communications, recommended that administrations, taking into account the relevant economic and operating factors, consider the possibility of meeting the requirements of the aeronautical mobile services on the main world air routes by means of space communication techniques. World Adnv~n/istratiVe Radio Conference for the Maritime Mobile $ervice- Geneva ~S'witzerlctnd, 1967 The conference made substantial amendments to those parts of the 1959 radio regulations and the additional radio regulations which apply to the maritime mobile service, which included: The gradual introduction of single sideband radiotelephony in the bands allocated to the maritime mobile service-up to January 1, 1ti82, between 1605 and 4000 kiloHertz and up to January 1, 1978, between 4000 and 23,000 kiloHertz; reduced channel spacing; assignment of frequencies for the transmission of oceanographic data and the allocation of irequencies for narrow-band di,reet~pri'nting telegraph systems and data trans- mission systems; the `reduction from 50 kiloHertz to 25 kiloHertz separation between channels used by the radiotelephone maritime mobile service in the 156-174 MegaHertz band; introduction of a radiocommunication operator's gen- `eral certificate for the maritime mobile service and measures to increase safety at sea. The conference recommended that a World Administrative Radio Con- ference be convened in 1973 to establish a new frequency allotment plan for such ~coast stations operating on high frequencies. Let us now examine the impact these various allocation proceedings, both national and international, have had `on the growth of radio. A brief look at the situation as it existed in 1946 shows that the Commission regulated a total of `20 radio services. This has grown to 69 services at present, or an increase of 245 percent. To illustrate, the first experimental mobile radiotelephone authoriza- tion was granted in 1946, out of which developed the `domestic public mobile radio- `telephone common carrier service. Another example of new uses and services `was the issuance of experimental `licenses for shipboard radar at `that tim'e. Still another is the citizens service. The growth in station authorizations is even more impressive. A listing of total authorizations in some of -the more familiar serv- Jces in existence at `that time compared to 1967 appears in table I, following: AUTHORIZATIONS-TABLE I Service 1946 1967 Percent increase Aviation 6,205 122, 568 2, 000 Police 2,868 19,493 580 ~Fire 25 11,238 45,000 Forestry 1,018 4,866 380 Special emergency 821 7,219 780 Railroad 156 6,871 4,300 :Ship(marine) 8,028 143,612 1,700 Amateur 69 300 266,584 385 Table II lists some additional authorizations in services created since 1946. Authorizations-Table II $ervice 1967 Point-to~poin't microwave 5,423 Domestic public land mobile radiotelephone 5, 172 Rural radio 716 Satellite `conimun'ieatlon'S Ground Space 14 Citizens 842, 317 Authorizations (or licenses) do not tell the whole story. This is especially true in the case `of the land mobile services, where one authoriza~tiO'fl may cove'r a system consisting of a ba'se station `an'd several hundred mobiles. And since it PAGENO="0092" 88 is transmitters that actually occupy the spectrum, those figures are more perti-~ nent to show the remarkable growth of radio than are authorizations. Table lit lists transmitter population in two services and clearly demonstrates the magui-~ tude of the problem facing the Commission. TRANSMITTERS-TABLE III Service 1946 1967 AM FM TV Miscellaneous 961 55 6 770 4,135 2,026 758 2,026 Total broadcast 1,792 8,945 Aviation Marine Public safety Industrial Land transportation Amateur Citizens Total safety and special (1) (1) (1) (1) (1) (1) (1) 196,723 174, 454 639, 555 1,551,410 489~ 835 283,412 2, 718, 505 6, 053, 894~ I Figures not available for 1946. Note: Transmitter figures not available for Common Carrier Service. I PAGENO="0093" APPENDIX 0.-PERSONNEL AoTIvrrIEs, FEDERAL CoMMUNICATIoNS CoMMISsIoN, M~ 1, 1968 1. Position and pay management This function is accomplished within the policy and procedural guides outlined in the position management system for the Federal Communications Commission (developed and implemented during fiscal year 1965). The position management system defines the objectives and provides a system and procedures for positive position management which will best serve the Commission's needs. The require- ments for carrying out a continuing review of position structure at all levels and for reviewing all positions at least once annually for need and for proper classification are basic features of the system. Vacant positions may not be filled until a thorough analysis has been made to determine whether the duties should be redistributed among other positions or the position can be abolished without seriously affecting accomplishment of essential functions. During fiscal year 1967 the position management system was revised to add the requirement and prescribe procedures for the establishment and administration of official staffing plans. The principal features of this system are as follows: (a) Each bureau and office is required to develop staffing plans which must follow certain prescribed criteria designed to attain organizational soundness, ceonomy in utilizatiOn of manpower resources, and effective personnel manage- ment. Tbes~ plans are approved only after they have undergone comprehensive review by the Bxecutive Director with the assistance of the Chiefs of the Manage- ment Information and Budget and Fiscal Divisions and the Director of PersonneL Changes in the plans must undergo the same type of review procedures. (b) All proposed personnel actions must be in accordance with approved staffing plans. Any proposed personnel action that is in variance with the ap- proved staffing pattern must be validated, within the context of the total staffing plan, before it can be approved. (c) Position ela~sification and other personnel maziagement conaide~rahiops are an integral part of the development and continuing administration of the staffing plans. Such considerations include: supervisor-worker ratios; balance among senior level, journeymen, trainees, and clerical personnel; balance and work di~tikibution among professionals and supportive subpvofessionals; career progressiôfi patterns; average grade; relatiouship between number o~ personnel and workload reguirements; and opportunity the organization provides for self- responsibility on1he part of alleniployees. Phe average grade of positions in FC~ has remained relatively stable. As ~f Ju~ne 30, 1967, the average grade for the 1,463 Classification Act emplQyees was 8.79. This is an increase of only 0.09 over fiscal year 1q66, and an increase of only 0.20 over tlie average grade for June 30, 1968. In view of the large number of posi- tions of a professional or specialized nature, this slight increase Is considered valid and reasonable. The Commission utilizes about 80 occupational series-65 Classification Act and 15 Wage Board. The largest single occupation utilized by tbe P00 is that of the electronic engineer, who constitutes approximately 28 percent of. Cla~sif1ca- tion Act positions. Attorneys, who represent the next largest occupational group, constitute approximately 14 percent. Professional workers of all categories com- prise almost 50 percent of the total Commission strength. 2~ Train%ag and development Training activities of the FCC involve developing and obtaining approval of needed training agreements, planning and conducting appropriate programs within the Commission, arranging for contract instructors to present needed courses, and reviewing other requests for both governmental and nongovern- mental training. To be responsive to general training needs engendered by Exeçu- tiv~ Order ]~o. 11348 of April 20, 1967, and to keep our employees current with technological changes, it i~ ~ltally important that tlte Conunissio~i maintain a (89) PAGENO="0094" 90 progressive training program including agency, interagency, and nongovern- mental training courses. The Commission-conducted courses include orientation sessions ; a series of individualized study programs in areas such as career English, shorthand, and basic statistics; special activities such as the recent seminar on wired TV dis- tribution signals: and supervisory training courses. Contract instructors present courses where the number of Commission em~1oyees warrants it in such are~s as shorthand, supervision, and reading improvement. Interagency training is used as much as possible to meet our other training needs in such courses as the executive seminars for midlevel managerial training; effective Writing; planning, programing, budgeting sewinars; supervisory institutes; and so forth. When necessary, we use non-Government facilitjes such as the Department of Agri-. culture Graduate School and universities. These non-Government courses are especially import~ant in maintaining current technological knowledge. To foster and encourage employee self-development, the FCC training program~ is putting increased emphasis on individualized training within the Commission.. Programed instruction materials which allow empJoyee~ to progress at their own rate are used, along with a teaching machine when appropri~tte, Many minority group employees are participating in these activities. These ~ development pro~rams ~appear to be an effective way of enhancing peomotion potential, especially for our employees at the lower grades. In fiscal year 1q67 we trained a total of 139 employees in courses of 8 hours'~ duration or longer. Of these, 78 were trained in interagnecy programs and 431. were trainedin nongovernmental programs. 3. Emp~oyee-man&gement reIat~osU Evety e1~fort is ~nade to keep the lines of communication open between en~, plo~ees atid management ofi an informal basis to the greatest extept p~sslble.. Last June a memOrandum was issued to the behd's of bureaus and sibaft offices to which was attathed for issii'ance to all supei~visory and management ofi1cial~ a copy of OSO's ~PM letterS No. 771-~ on the~ 5ub~ie'ct df (a) employee access to the persoiTnel okflce and mttnngement per~om~el~an4 (~) filing of gr~evanees. All sup~rviairs and ~OaiTag~ént officials were re~juent~tto eom~ly wiTh the lettei~ and s~nri~t of the priuci~je enunciated in the FP1~f le<er ~uperviisory and administrative officials are rëqu~red to discuss frqhiems~ and complaints courteously n~iith employees oi~ matters affertink their sta~usand wel- fare and to clarify inisthidersitanding aud t~ mahe any reasonable a~justrnents found warranted. If the c~thpl1aint~ andgrievanceseanno~ be w~th~e~l eüt, to the mutual satisfaction of the employee ahd the supervisor, the ernpl~yep has the right to sitbthlit ~ written grievance to the next higher level of ~u~I~vt~on. The. employee may, if be so requests have `the grievance beard by an ~d liQ~e 3-man grievance cOmmittee one member of which is nail~ed by the employee ~I~he cam mittee holds hearings and `makes a re~ort of fiodings and veeomniendátiops to the head of the bureau and staff office. I~ the emplbyee is not satislhsi with the decision of the head of .the'bureau or staff o~1ce, be has the right ,to~ appeal that~ decision to the full 7-man Commission. Dlsoiplii~äry and adverse actions are taken in the Federal comluuuiöa~ticni5 Commission only after ~Il efforts to resolve the problems have failed. ~Vhei~ ne~- essary, such actions are t~kén only in accordance with chapter 77~: A~dter~e Ac- tion Appeals,. of the FCC Personnel Manual. ` ` We furnish information to all employees on their right to jolh pr not tç .ialn employee organizatiOns ahd on other rights and res!ponsibillties `undarE±e~iT- tive Order 1O~8S. ` 4. Merit, promotion ` ` ~. A revised merit promotion plan for the FCC was adopted and fmt ihtO eff~t~ on September t3, 19114. The plan `is structured to insure that all employees will compete for promotion on the same basis. Safeguards or checks and balances have been 1built Into the Plan in `an effOrt to achieve maximum equity and to attempt to avoid Out-of~bali~n~e sitiTaticars, as well as dead-end jobs, ~for all em- ployees. The followiz~g provisions ar~ cited as cheeks and balances under merit promotion to assure ~that all quallf1~d peo~ile are being considerOd~ (a) Whei~ supervisors propoSe' any essential ~r desirable job reqtiireineiTts in `addition to applie*le Civil Service Oot~miission standards to be a.~iplldd, tbe~e requirements must b~ submitted to the Personnel Thvls'ion fer~ review `aiTd dl~- cussion With appropriate officials. Requirements are approved by Personnel Division only if the requirements are realistic and will faeil'ittmtecom~etitive~ evaluation. PAGENO="0095" 91 (b) Each request for personnel action is carefuUy ~vie~ed by the personnet division to insure the propriety o1~ the proposed method for filling t~e position. This review includes a determination that the criteria contained in the plan are met if the position is to be filled by a. method other than prçmotion or if the promotion is to be processed as a career promotion or exception to the procedurea of the plan. (c) For all vacancies to be filled by promotion, job vacancy announcements are posted and circulated to employees who might qualify. (d) Employees outside the minimum areas of consideration outlined in the plan, including those who occupy positions from which no reasonable promo' tional opportunity exists and who desire merit promotion consideration at othei'~ locations, may file an application with the personnel division. (e) The personnel division, based on a review of the records of skills of employees, will recommend consideration of other qualified employees including those who are significantly underutilized in their present assignment. (f) The plan specifies that supervisors are responsible for informing the personnel division regarding employees who are underutilised. (g) To insure the greatest possible objectivity, evaluation methods provided for in the plan include the use of ad hoc committees to provide multiple judg~ ment in ranking candidates into categories of qualified andbest qualified for all supervisOry positions and for positions US-il and above~ Ranking for non~ supervisory positions US-tO and below also involves multiple judgment by staff~ members of the personnel division. Ranking factors and methods are specified in the plan and are documented ineach ease. (h) Supervisors may `seleet only from among candidates placed On the list of best qualified and they are required to provide the reason for their selectiom (i) All candidates for a promotion are advised' in writing Of their eligibility or noneligibility; whether they have beeu ranked as qualified or best qualifk~d; and `if ranked as best qualified and not selected they are advised of `the name of the successful candidate and the reason for hisseleetiOn.. (5) Provision is made for inquiry by7 employee~ to personnel division; in addition representatives of that division will counsel employees where necessary" steps for personal development may be. taken to improve their oppOrtunities for promoti~n consideration in the tuture~ . (J~s) ~in addition to the postibg system under this `formaL merit promution~pro~~ gram for employees In the competitive sOrvice, aII'.exeeptedservice attorney posi~ tions above US-il are advertised and all interested' apd el1~ible attorneys are7' invited to apply for thevacancies. ` ` ` `.. 5. Computerized personnel iaventary . , . , 7 ` .7 , " A project :°fl which significant progress has been ma~te in recent months is the FCC, personnel inventory. This system has been established to be responsive. to the needs of the Commissioners and all St .manage~s for an~1y~e~ of personal and other data for use in effective manpower p1aa~ii.ng and utiiiz~tion. It will also he used as a basis for the , development of career management programs,. occupationally oriented, and established on an FOC~wkte basis, to prQvide an orderly and foreseeable system for the planned development and career progres~ sion of employees. The system will also provide an employee skills inventory which will be utilized as an integral part of the meni~ promQtion-career referral, system to refer emj~iloyees for coiisideration for.promotiç~ and to identify unçler- utilized employees. Collection qf, data has been completed and computer prograni ing initiated for thIs system. , The FCC has long recognized the critical necessity of an effective manpower planning and utilization system which will provide a. flow of necessary qualb. tative and quantitative' information regarding manpower resources to, top. man-. agement as accurately and rapidly as other types of inforinatiop, which are required in decisionmaking.. ` , ` . ` Through the availability of an automated personnel data bank on all em- ployees, the Commission will have increased tremendously its capability for ~" analyses and studies of sach matters as: numbers, idnds, and grades of jobs; projections of turnover and replacegLent needs ~,y oCcupation, grade, or orga~ nization; comparisons of higl!iest educational levels among various occupations, by grade or organizational level; readiness for an4 ,~apidity of advancement; potential vacancies resulting from retir~tnent, by ~rganjzatiop, ~ecupatIón, gra~~, or f~r the Commission as a whole; st~fl1Cieacy qf en1~y leve~ recruitment; pro- jections of training needs; occupational and skills analyses; comparisops if em- ployee age by occupation, grade, or organization; selected organizational coin- PAGENO="0096" 92 parisons re1atin~ to personnel ; em~Ioyee characteristics, work skills, and e~pe- rience ; location o~ employees having specific desired or rare skills or qualifica- tions ; grade strticture studies within organizations or by profession ; organiza- tion-to-organization comparisons by' grade ; statistical and detailed studies of employee losses ~ by grade, occupation, organization, reason for leaving ; and other studies. 6. Employineat The objectives of the FCC employment program are : To identify, evaluate, and refer to operating ofilcials the best qualified talent available both inside and outside the Federal Communications Commission, to liii manpower needs ; to take official personnel actions effecting the appointment and placement of se- lected candidates ; to administer a continuing program for the management of employees on the. rolls ; and. to maintain personnel records. The manner in which these functions are accomplished by the Personnel Division must be responsive to management needs, represent sound and effective personnel administration, and be consistent with legal and regulatory requirements governing personnel administration. Within this context, special attention is given to such categories of personnel as the disadvantaged, physically handicapped, mentally retarded, mentally restored minority groups women and older workers The means by which the employment services function is carried out are summarized as follows: (a) lilecr t'nie~vt and p~acein~ent -The principal techniques utilized for meeting staffing needs include the internal merit promotion program, selection of indi- viduals from registers of eligibles maintained by the Civil Service Commission college recruitment applicants with prior Federal service and other individuals appiy1~g directly to the Comm~~ lss~lon~ Since almost 50 percent of the personnel of this Commission fall in the professional categories the FCC s Quest for quality personnel has given rise to . an extensive on-campus program aimed primarily at electronic engineers and attorneys While the planning responsibility for the programS resides with the Personnel Division, the on-campus interviews are earr1ed~ out primarily by professional engineers and attorneys employed by the Commission During the past recruiting season recruitment visits were made to 27 college campuses in the search for promising young engineers while 26 èampuses were visited for the recruitment of attorneys. Also, in an attempt to capitalize on the burgeoning.junior college developrnent~ our recruitment pro- gram was expanddd tins p~ist year to include a number of these schools in search of the suhpröfesslolial ele~tronics tethniCians and `other graduates of these institutions. (b) Continuing personnei management.-~ubsequen't to the recruitment and placement of employees, the' PersonnOl DivIsion carries out a continuing pro- gram of personnel management in cooperation with supervisors and management officials. This `activity includes: providing the necessary toOls to supervisors for the measuremthit and evaluation of the performance of employees; helping supervIsors motivate employee.s to make their best efforts thrqugh such means as incentive prografms, quality within-grade pay increases, and promotional op.1 portunities insurl~ig appropriate consideration is given to the rights benefits privileges, and responsibilities of FCC employees; and assisting in the mainte- nance of effective supervision at all echelons. Particular attention is given to employees during the probationary, period to Identify weak or marginal perform- ance and to be sure that each umployee is given an opportunity to improve before any `adverse `action is Initiated. (c) PersonneZ records a~v reports.-In addition to the above, the Personnel Division is responsible for the origination of all official personnel actions, and maintenance of thO `official personnel fOlder which Incorporates all documents affecting the career and employment history of each employee. information as required is provided to the individual employee, the supervisor, the payroll office, and the Civil Sers~ice CommissiOn. The personnel processing determinations which precede each action must necessarily comply with all requirements of law `and regulations. ThO data maintained in the personnel folders are used for all reports required by external sources, as well as those prepared for internal management purposes. This information Is used for such purposes as minority group statistics, strength reports, reduction-in-force registers, retirement studies, work-force composition, and manpower planning. The personnel inventory in the computer data bank is automatically updated at the time each personnel transac- tion Is effected. 0