[Federal Register Volume 73, Number 103 (Wednesday, May 28, 2008)]
[Proposed Rules]
[Pages 30563-30591]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-11891]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 08-65; FCC 08-126]
Assessment and Collection of Regulatory Fees For Fiscal Year 2008
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Commission will revise its Schedule of Regulatory Fees in
order to recover the amount of regulatory fees that Congress has
required it to collect for fiscal year 2008. Section 9 of the
Communications Act of 1934, as amended, provides for the annual
assessment and collection of regulatory fees under sections 9(b)(2) and
9(b)(3), respectively, for annual ``Mandatory Adjustments'' and
``Permitted Amendments'' to the Schedule of Regulatory Fees.
DATES: Comments are due May 30, 2008, and reply comments are due June
6, 2008.
ADDRESSES: You may submit comments, identified by MD Docket No. 08-65,
by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web Site: http://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
E-mail: [email protected]. Include MD Docket No. 08-65 in the
subject line of the message.
Mail: Commercial overnight mail (other than U.S. Postal
Service Express Mail, and Priority Mail, must be sent to 9300 East
Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th
Street, SW., Washington DC 20554.
FOR FURTHER INFORMATION CONTACT: Mika Savir, Office of Managing
Director at (202) 418-0384.
SUPPLEMENTARY INFORMATION:
Adopted: May 7, 2008.
Released: May 8, 2008.
By the Commission:
Table of Contents
Paragraph
No.
I. Introduction............................................. 1
II. Discussion.............................................. 2
A. FY 2008 Regulatory Fee Assessment Methodology-- 4
Development of FY 2008 Regulatory Fees.................
1. Calculation of Revenue and Fee Requirements...... 4
2. Additional Adjustments to Payment Units.......... 5
a. Commercial Mobile Radio Service (``CMRS'') 5
Messaging Service..............................
b. Regulatory Fee Obligations for AM Expanded 6
Band Broadcasters..............................
B. International Bearer Circuits........................ 8
C. Administrative and Operational Issues................ 9
1. Use of Fee Filer................................. 10
2. New Lock Box Bank................................ 12
3. New Receiving Bank for Wire Payments............. 13
4. Proposals for Notification and Collection of 14
Regulatory Fees....................................
a. Interstate Telecommunications Service 17
Providers (``ITSPs'')..........................
b. Satellite Space Station Licensees............ 19
c. Media Services Licensees..................... 21
d. CMRS Cellular and Mobile Services Assessments 24
e. Cable Television Subscribers................. 28
5. Streamlined Regulatory Fee Payment Process for 30
CMRS Cellular and Mobile Providers.................
6. Future Streamlining of the Regulatory Fee 31
Assessment and Collection Process..................
III. Procedural Matters..................................... 32
A. Payment of Regulatory Fees........................... 32
1. De Minimis Fee Payment Liability................. 32
2. Standard Fee Calculations and Payment Dates...... 33
B. Enforcement.......................................... 34
C. Initial Regulatory Flexibility Analysis.............. 36
[[Page 30564]]
D. Initial Paperwork Reduction Act Analysis............. 37
E. Ex Parte Rules....................................... 38
F. Filing Requirements.................................. 39
IV. Order................................................... 44
V. Ordering Clauses......................................... 50
Attachments
Attachment A Initial Regulatory Flexibility Analysis
Attachment B Sources of Payment Unit Estimates for FY 2008
Attachment C Calculation of Revenue Requirements and Pro-
Rata Fees
Attachment D Proposed FY 2008 Schedule of Regulatory Fees
Attachment E Factors, Measurements, and Calculations that
Determine Station Contours and Population Coverages
Attachment F FY 2007 Schedule of Regulatory Fees
I. Introduction
1. Section 9 of the Communications Act of 1934, as amended (``the
Act''), requires the Commission to assess fees to recover the
regulatory costs associated with the Commission's enforcement, policy
and rulemaking, user information, and international activities.\1\ In
this Notice of Proposed Rulemaking (``Notice''), we propose to collect
$312,000,000 in regulatory fees for Fiscal Year (``FY'') 2008. In this
proceeding we seek comment on several regulatory fee issues for FY 2008
and also announce the new lock box address for payments to the
Commission.
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\1\ 47 U.S.C. 159.
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II. Discussion
2. In this Notice, we seek comment on the development of FY 2008
regulatory fees collected pursuant to section 9 of the Act. For FY
2008, we propose to retain the established methods and policies that
the Commission has used to collect regulatory fees in the past except
as discussed below. For the FY 2008 regulatory fee cycle, we propose to
retain most of the administrative measures used for notification,
assessment, and pre-billing of regulatory fees of previous years. As we
have in previous years, we seek comment on ways to improve the
Commission's administrative processes for notifying entities of their
regulatory fee obligations and collecting their payments.
3. The Commission is obligated to collect $312,000,000 in
regulatory fees during FY 2008 to fund the Commission's operations.
Consistent with our established practice, we intend to collect these
fees in the August-September 2008 time frame in order to collect the
required amount by the end of the fiscal year.
A. FY 2008 Regulatory Fee Assessment Methodology--Development of FY
2008 Regulatory Fees
1. Calculation of Revenue and Fee Requirements
4. For our FY 2008 regulatory fee assessment, we propose to use
essentially the same section 9 regulatory fee assessment methodology
adopted for FY 2007, except as discussed below. Each fiscal year, the
Commission proportionally allocates to fee categories the total amount
that must be collected through our section 9 regulatory fees.\2\
Consistent with past practice, we propose to divide the FY 2008 payment
amount by the number of payment units in each fee category to calculate
the unit fee. For cases involving small fees, we propose to divide the
resulting unit fee by the term of the license. We propose to round
these fees consistent with the requirements of section 9(b)(2) of the
Act. We seek comment on these proposals.
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\2\ See Appendix C for the proposed FY 2008 regulatory fee
assessment methodology, including a comparison to the FY 2007
results.
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2. Additional Adjustments to Payment Units
a. Commercial Mobile Radio Service (``CMRS'') Messaging Service
5. CMRS Messaging Services, which replaced the CMRS One-Way Paging
fee category in FY 1997, includes all narrowband services.\3\ Since FY
2002, we have proposed to continue our policy of maintaining the CMRS
Messaging Service regulatory fee at the rate that was first established
in FY 2002 \4\ (i.e., $0.08 per subscriber), noting that the subscriber
base in this industry has declined significantly.\5\ We found that
maintaining the CMRS Messaging regulatory fee rate at $0.08 per
subscriber, rather than allowing it to increase, was the appropriate
level of relief to be afforded to the messaging industry.\6\ In this
NPRM we propose to maintain the messaging service regulatory fee at
$0.08 per subscriber. We seek comment on this proposal. Commenters
suggesting a different approach, i.e., a proposal other than keeping
the fee at $0.08 per subscriber, should provide industry data to
support their position.
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\3\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 1997, MD Docket No. 96-186, Report and Order, 12 FCC Rcd 17161,
17184-85, para. 60 (1997) (``FY 1997 Report and Order'').
\4\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2003, MD Docket No. 03-83, Report and Order, 18 FCC Rcd 15985,
15992, para. 21 (2003) (``FY 2003 Report and Order'').
\5\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2007, MD Docket No. 07-81, Notice of Proposed Rulemaking, 22
FCC Rcd 7975, 7978, para. 7 (2007) (``FY 2007 NPRM''). The
subscriber base in the paging industry declined 83 percent from 40.8
million to 7.1 million, from FY 1997 to FY 2007, according to FY
2007 collection data, as of September 30, 2007.
\6\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2007, MD Docket No. 07-81, Report and Order and Further Notice
of Proposed Rulemaking, 22 FCC Rcd 15712, 15715, para. 9 (2007)
(``FY 2007 Report and Order'').
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b. Regulatory Fee Obligations for AM Expanded Band Broadcasters
6. The Commission initiated the migration of existing standard band
AM stations to the expanded band to reduce interference and congestion
in the existing standard band.\7\ AM expanded band radio stations, in
the 1610-1700 kHz range, are currently exempt from payment of
regulatory fees as a matter of policy. Standard band AM stations, in
the 540-1600 kHz range, are subject to regulatory fees. Our decision
several years ago not to require section 9 regulatory fee payments for
AM expanded band stations was not a permanent exemption from regulatory
[[Page 30565]]
fees for AM expanded band radio service.\8\
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\7\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2005 and Assessment and Collection of Regulatory Fees for
Fiscal Year 2004, MD Docket Nos. 05-59 and 04-73, Report and Order
and Order on Reconsideration, 20 FCC Rcd 12259, 12267, para. 25
(2005) (``FY 2005 Report and Order'').
\8\ FY 2005 Report and Order, 20 FCC Rcd at 12267, para. 25.
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7. We now seek comment on the most efficient methods of assessing a
regulatory fee on expanded band AM licenses. We seek comment
particularly regarding those instances where the licensee chooses to
retain the expanded band service while giving up the standard band
station.\9\ We also seek comment on whether we should impose a separate
regulatory fee on an expanded band licensee that holds a standard band
license and continues to operate both stations (i.e., the licensee is
not migrating to the expanded band but is keeping two licenses).
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\9\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2005, MD Docket No. 05-59, Notice of Proposed Rulemaking, 20
FCC Rcd 3885, 3896, para. 36 (2005).
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B. International Bearer Circuits
8. In our FY 2006 NPRM,\10\ we noted that VSNL Telecommunications
(US) Inc. (``VSNL'') had filed a Petition for Rulemaking urging the
Commission to revise its regulatory fee methodology for bearer
circuits;\11\ and that we issued a public notice designating the
proceeding as RM-11312 and requesting comment on the petition.\12\ We
stated in our FY 2006 Report and Order that the issues presented in the
Petition warrant consideration separately from the Commission's annual
regulatory fee proceeding.\13\ In our FY 2007 NPRM, we received a set
of joint comments filed by seven submarine cable landing licensees
urging the Commission to take similar action.\14\ We grant VSNL's
petition and seek comment herein on the methodology used to calculate
regulatory fees for providers of international bearer circuits. We seek
comment on whether the Commission should retain the current methodology
used to these regulatory fees, or change or modify the methodology (and
if so, how?).
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\10\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2006, MD Docket No. 06-68, Notice of Proposed Rulemaking, 21
FCC Rcd 3708, 3718, n.20 (2006) (``FY 2006 NPRM'').
\11\ See Petition for Rulemaking of VSNL Telecommunications (US)
Inc., RM-11312 (filed Feb. 6, 2006) (``VSNL Petition'').
\12\ See Consumer and Governmental Affairs Bureau, Reference
Information Center, Public Notice, Report No. 2759 (rel. Feb. 15,
2006).
\13\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092,
8098-99, para. 18 (2006) (``FY 2006 Report and Order'').
\14\ See Joint Comments at 1.
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C. Administrative and Operational Issues
9. We seek comment on the administrative and operational processes
used to collect the annual section 9 regulatory fees. These issues do
not affect the amount of regulatory fees parties are obligated to
submit; however, the administrative and operational issues affect the
process of submitting payment. We invite comment on ways to improve
these processes.
1. Use of Fee Filer
10. We continue to encourage regulatees to use the Commission's
online electronic Fee Filer application. Using the Commission's Fee
Filer application reduces paperwork burdens on payors because it
eliminates the need to file a paper FCC Form 159. It also allows payors
to make a single payment for pre-billed and non-billed regulatory fees.
Regulatees submitting more than ten (10) Form 159-Cs are strongly
encouraged to use Fee Filer when sending their regulatory fee payment.
11. Regulatees who file their FCC Form 159 information online via
Fee Filer may choose to pay by online ACH debit from a bank account, by
online credit card, by check or money order, by wire, or by credit card
on paper. Payors wishing to remit payment via check, money order, wire,
or credit card on paper must print a Fee Filer-generated Form 159-E
Remittance Voucher to accompany payment, in lieu of Form 159. We note
that Fee Filer will accept credit card payments of up to $99,999.99;
the FCC accepts ACH debits (via Fee Filer) from a bank account in any
denomination. All online payments are considered received by the FCC at
the time that the FCC accepts the payor's bank account information or
authorizes the payor's credit card.
2. New Lock Box Bank
12. We advise all regulatees that the Commission has a new lock box
bank. All lock box payments to the Commission for FY 2008 will be
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC.
For all regulatory fees, the address is: Federal Communications
Commission, Regulatory Fees, P.O. Box 979084, St. Louis, MO 63197-9000.
3. New Receiving Bank for Wire Payments
13. We also advise all regulatees that the Commission has a new
receiving bank for wire payments. The new receiving bank is the Federal
Reserve Bank, New York, New York (TREAS NYC). When making a wire
transfer, regulatees must fax a copy of their completed remittance
instrument to U.S. Bank, St. Louis, Missouri at (314) 418-4232 at least
one hour before initiating the wire transfer (but on the same business
day), so as to not delay crediting their account. Wire transfers
initiated after 6:00 p.m. (EDT) will be credited the next business day.
Complete instructions for making wire payments are posted at http://www.fcc.gov/fees/wiretrans.html.
4. Proposals for Notification and Collection of Regulatory Fees
14. Public Notices and fact sheets. In this section, we seek
comment on the administrative processes that the Commission uses to
notify regulatees and collect regulatory fees. Each year we post public
notices and fact sheets pertaining to regulatory fees on our Web site.
These documents contain information about the payment due date and the
regulatory fee payment procedures. We will continue to post this
information on http://www.fcc.gov/fees/regfees.html. We seek comment on
ways to improve our regulatory fee public notices and fact sheets.
15. Regulatees are expected to pay their yearly regulatory fees by
filing FCC Form 159 or by accessing the Commission's online Fee Filer
application.\15\ As a general practice, we will not send regulatory fee
material to regulatees via surface mail. However, in the event that
regulatees do not have access to the Internet, we will mail public
notices and other relevant material upon request. Regulatees and the
general public may request such information by contacting the FCC
Financial Operations Help Desk at (877) 480-3201, Option 4. We seek
comment on ways to improve our administrative processes.
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\15\ http://www.fcc.gov/fees/feefiler.html.
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16. Pre-bills. We will not send public notices and fact sheets to
regulatees en masse; however, we propose to continue to send specific
regulatory fee pre-bills or assessment notifications via surface mail
to the select fee categories discussed below.\16\ Pre-bills are
hardcopy billing statements that the Commission mails to certain
regulatees. The Commission currently sends pre-bills to interstate
telecommunications service providers (``ITSPs''), satellite space
station licensees (both geostationary and non-geostationary), to
[[Page 30566]]
holders of Cable Television Relay Service (``CARS'') licenses, and
earth station licensees. The remaining regulatees do not receive pre-
bills. We seek comment on ways to improve this practice. Commenters
should discuss whether we should add other regulatory fee categories to
our pre-bill procedures.
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\16\ An assessment is a proposed statement of the amount of
regulatory fees owed by an entity to the Commission (or proposed
subscriber count to be ascribed for purposes of setting the entity's
regulatory fee) but it is not entered into the Commission's
accounting system as a current debt. A pre-bill is considered an
account receivable in the Commission's accounting system. Pre-bills
reflect the amount owed and have a payment due date of the last day
of the regulatory fee payment window. Consequently, if a pre-bill is
not paid by the due date, it becomes delinquent and is subject to
our debt collection procedures. See also 47 CFR 1.1161(c),
1.1164(f)(5), and 1.1910.
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a. Interstate Telecommunications Service Providers (``ITSPs'')
17. In FY 2001, we began mailing pre-completed FCC Form 159-W
assessments to carriers in an effort to assist them in paying their
ITSP regulatory fee. The fee amount on FCC Form 159-W was calculated
from the FCC Form 499-A worksheet. Beginning in FY 2004, we mailed the
completed FCC Form 159-W as a pre-bill, rather than as an assessment of
amount due. Other than the manner in which Form 159- payments were
entered into our financial system, carriers experienced no procedural
changes regarding the use of the FCC Form 159-W when submitting payment
of their ITSP regulatory fees. We seek comment on whether we should
continue this pre-billing process for ITSPs in FY 2008.
18. In FY 2007, we adopted a proposal to round lines 14 (total
subject revenues) and 16 (total regulatory fee owed) on FCC Form 159-W
to the nearest dollar. This revision enabled the Commission to process
the ITSP regulatory fee payments more quickly because rounding was no
longer a hindrance that slowed the processing of payments. In FY 2008,
we will continue to round lines 14 and 16 on FCC Form 159-W to the
nearest dollar. We seek comment on other ways that we can improve our
pre-billing initiative for ITSPs.
b. Satellite Space Station Licensees
19. Beginning in FY 2004, we mailed regulatory fee pre-bills via
surface mail to licensees in our two satellite space station service
categories. Specifically, geostationary orbit space station (``GSO'')
licensees received bills requesting regulatory fee payment for
satellites that (1) were licensed by the Commission and operational on
or before October 1 of the respective fiscal year; and (2) were not co-
located with and technically identical to another operational satellite
on that date (i.e., were not functioning as a spare satellite). Non-
geostationary orbit space station (``NGSO'') licensees received pre-
bills requesting regulatory fee payment for systems that were licensed
by the Commission and operational on or before October 1 of the
respective fiscal year.
20. For FY 2008, we propose to continue mailing pre-bills for our
GSO and NGSO satellite space station categories. We seek comment on
this proposal. We emphasize that the pre-bills that we propose to
generate for our GSO and NGSO licensees will only be for the satellite
or system aspects of their respective operations. GSO and NGSO
licensees typically have regulatory fee obligations in other service
categories (e.g., earth stations, broadcast facilities), and we expect
satellite operators to meet their full fee payment obligation for all
of their FCC holdings. We seek comment on our proposal to generate
regulatory fee pre-bills for our two satellite space station service
categories.
c. Media Services Licensees
21. Beginning in FY 2003, we sent fee assessment notifications via
surface mail to media services entities on a per-facility basis. The
notifications provided the assessed fee amount for the facility in
question, as well as the data attributes that determined the fee
amount. We have since refined this initiative with improved
results.\17\ We propose to continue our assessment initiative for media
services licensees in FY 2008.\18\ We seek comment on this proposal.
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\17\ Some of those refinements have been to provide licensees
with a Commission-authorized Web site to update or correct any
information concerning their facilities, and to amend their fee-
exempt status, if need be. Also, our notifications now provide
licensees with a telephone number to call in the event that they
need customer assistance. The notifications themselves have been
refined so that licensees of fewer than four facilities receive
individual fee assessment postcards for their facilities; whereas
licensees of four or more facilities now receive a single assessment
letter that lists all of their facilities and the associated
regulatory fee obligation for each facility.
\18\ We again propose to issue fee assessments for AM and FM
Radio Stations, AM and FM Construction Permits, FM Translators/
Boosters, VHF and UHF Television Stations, VHF and UHF Television
Construction Permits, Satellite Television Stations, Low Power
Television (``LPTV'') Stations and LPTV Translators/Boosters, to the
extent that applicants, permittees and licensees of such facilities
do not qualify as government entities or non-profit entities. Fee
assessments have not been issued for broadcast auxiliary stations in
prior years, nor will they be issued in FY 2008.
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22. Consistent with procedures used last year, we propose to mail
assessment notifications to licensees to their primary record of
contact populated in our Consolidated Database System (``CDBS'') and to
their secondary record of contact, if available. We seek comment on
this proposal. We will continue to make the Commission-authorized Web
site available to licensees to update or correct any information
concerning their facilities and to amend their fee-exempt status, if
need be.\19\ If there is a change of address for the facility, it is
the licensee's responsibility to make the address change in the Media
Bureau's CDBS system, as well as in the Commission's Registration
System (``CORES'').
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\19\ The Commission-authorized Web site for media services
licensees is http://www.fccfees.com.
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23. Under our proposal, licensees must still submit a completed FCC
Form 159 Remittance Advice with their fee payments. The assessment
notifications, whether in the form of a letter or postcard, cannot be
used as a substitute for a completed Form 159.
d. CMRS Cellular and Mobile Services Assessments
24. As we have done in prior years, we propose to mail an
assessment letter to Commercial Mobile Radio Service (``CMRS'')
providers using data from the Numbering Resource Utilization Forecast
(``NRUF'') report that is based on ``assigned'' number counts that have
been adjusted for porting to net Type 0 ports (``in'' and ``out'').\20\
This letter will include a listing of the carrier's Operating Company
Numbers (``OCNs'') upon which the assessment is based.\21\ Consistent
with existing practice, the letters will not include OCNs with their
respective assigned number counts, but rather, an aggregate total of
assigned numbers for each carrier. We also propose to continue our
procedure of giving entities an opportunity to revise their subscriber
counts by sending two rounds of assessment letters--an initial
assessment and a final assessment letter. We seek comment on this
proposal.
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\20\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2005 and Assessment and Collection of Regulatory Fees for
Fiscal Year 2004, MD Docket Nos. 05-59 and 04-73, Report and Order
and Order on Reconsideration, 20 FCC Rcd 12259, 12264, para. 38-44
(2005).
\21\ Id.
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25. If the number of subscribers on the initial assessment letter
differs from the subscriber count the service provider provided on its
NRUF form, the carrier can correct its subscriber count by returning
the assessment letter or by contacting the Commission and stating a
reason for the change, such as the purchase or the sale of a
subsidiary, including the date of the transaction, and any other
information that will help to justify a reason for the change. If we
receive no response or correction to our initial assessment letter, we
will expect the fee payment to be based on the number of subscribers
listed on the initial assessment. We will review all responses to
initial assessment letters and determine whether a change in the number
of subscribers is warranted. We
[[Page 30567]]
will then generate and mail a final assessment letter. The final
assessment letter will inform carriers as to whether or not we accept
the changed number of subscribers. As in previous years, operators will
certify their subscriber counts in Block 30 of the FCC Form 159
Remittance Advice when making their regulatory fee payments. We seek
comment on our current procedures of assessing CMRS subscriber counts
(for NRUF filers) and other ways to improve the process.
26. Some carriers may not be sent a letter of assessment because
they had not filed the NRUF form. We propose that these carriers
compute their fee payment using the standard methodology \22\ that is
currently in place for CMRS Wireless services (e.g., compute their
subscriber counts as of December 31, 2007), and submit their payment
accordingly on FCC Form 159. The Commission may audit the number of
subscribers for which regulatory fees are paid, whether a carrier
receives an assessment letter or computes the subscriber count itself.
In the event that the Commission determines that the number of
subscribers is inaccurate or that an insufficient reason is given for
making a correction on the initial assessment letter, the Commission
will assess the carrier for the difference between what was paid and
what should have been paid.
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\22\ Federal Communications Commission, Regulatory Fees Fact
Sheet: What You Owe--Commercial Wireless Services for FY 2005 at 1
(rel. Jul. 2005).
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27. We, therefore, propose to (1) derive the subscriber count from
NRUF data based on ``assigned'' number counts that have been adjusted
for porting to net Type 0 ports (``in'' and ``out''); (2) provide
carriers with an opportunity to revise their subscriber counts at the
time when the initial assessment letter is mailed; and (3) require
carriers to confirm their subscriber counts at the aggregate level
using data in the NRUF report. We seek comment on these proposals.
e. Cable Television Subscribers
28. We propose to continue to permit cable television operators to
base their regulatory fee payment on their company's aggregate year-end
subscriber count, rather than requiring them to sub-report subscriber
counts on a per community unit identifier (``CUID'') basis on the FCC
Form 159 Remittance Advice. We seek comment on this proposal.
Operators, after providing their company's aggregate subscriber count
in Block 25A of the FCC Form 159, will still be required to certify the
accuracy of the subscriber count in Block 30. This practice has worked
well for the Commission the past three fiscal years and has eased
administrative burdens for the cable television industry.
29. Beginning in FY 2006, we sent an electronic message to e-mail
addresses populated in the Media Bureau's Cable Operations and
Licensing System (``COALS'') to notify them of the amount and due date
of regulatory fees for basic cable television subscribers. We propose
to continue this effort for FY 2008, but we are not sure if this
notification practice is effective. We seek comment on whether this
practice of sending electronic e-mail notification to cable operators
should be continued.
5. Streamlined Regulatory Fee Payment Process for CMRS Cellular and
Mobile Providers
30. In FY 2006, we streamlined the CMRS payment process by
eliminating the requirement for CMRS providers to identify their
individual calls signs when making their regulatory fee payment,
requiring instead for CMRS providers to pay their regulatory fees only
at the aggregate subscriber level without having to identify their
various call signs.\23\ We propose to continue this practice in FY
2008. We seek comment on this proposal. In addition, to lessen the
administrative burden on licensees, we proposed in FY 2007 to
consolidate the CMRS cellular and CMRS mobile fee categories into one
fee category and as one fee code, thereby eliminating the requirement
for CMRS providers to separate their subscriber counts into CMRS
cellular and CMRS mobile fee categories during the regulatory fee
payment process. This consolidation of fee categories enabled the
Commission to process payments more quickly and accurately. For FY
2008, we propose to continue this practice of combining the CMRS
cellular and CMRS mobile fee categories into one regulatory fee
category. We seek comment on this proposal.
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\23\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092,
8105, para. 48 (2006).
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6. Future Streamlining of the Regulatory Fee Assessment and Collection
Process
31. We continue to welcome comments concerning our commitment to
reviewing, streamlining, and modernizing our statutorily required fee
assessment and collection procedures. Our areas of particular interest
include: (1) The process for notifying licensees about changes in the
annual Schedule of Regulatory Fees and how it can be improved; (2) the
most effective way to disseminate regulatory fee assessments and bills,
e.g., through surface mail, e-mail, list server using Listserv, online
Web site, or some other mechanism; (3) the fee payment process,
including how the agency's online regulatory fee filing system (Fee
Filer) can be enhanced; (4) the timing of fee payments, including
whether we should alter the existing section 9 regulatory fee payment
window in any way; and (5) the timing of fee assessments and pre-bills.
III. Procedural Matters
A. Payment of Regulatory Fees
1. De Minimis Fee Payment Liability
32. Consistent with past practice, regulatees whose total FY 2008
regulatory fee liability, including all categories of fees for which
payment is due, amounts to less than $10 will be exempted from payment
of FY 2008 regulatory fees.
2. Standard Fee Calculations and Payment Dates
33. The Commission will, for the convenience of payers, accept fee
payments made in advance of the window for the payment of regulatory
fees. Licensees are reminded that, under our current rules, the
responsibility for payment of fees by service category is as follows:
\24\
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\24\ As we noted earlier in our request for comments in possible
adjustments to payment units, e.g., para. 6-12, we seek comment
addressing several areas in our regulatory fees. Such comments may
result in modification of the fee calculations discussed above and
the methodology stated below. See, e.g., note 24.
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Media Services: Regulatory fees must be paid for initial
construction permits that were granted on or before October 1, 2007 for
AM/FM radio stations, VHF/UHF television stations and satellite
television stations. Regulatory fees must be paid for all broadcast
facility licenses granted on or before October 1, 2007. In instances
where a permit or license is transferred or assigned after October 1,
2007, responsibility for payment rests with the holder of the permit or
license as of the fee due date.
Wireline (Common Carrier) Services: Regulatory fees must
be paid for authorizations that were granted on or before October 1,
2007. In instances where a permit or license is transferred or assigned
after October 1, 2007, responsibility for payment rests with the holder
of the permit or license as of the fee due date.
Wireless Services: CMRS cellular, mobile, and messaging
services (fees based upon a subscriber, unit or circuit
[[Page 30568]]
count): Regulatory fees must be paid for authorizations that were
granted on or before October 1, 2007. The number of subscribers, units
or circuits on December 31, 2007 will be used as the basis from which
to calculate the fee payment.
The first eleven regulatory fee categories in our Schedule
of Regulatory Fees (see Attachment D) pay what we refer to as ``small
multi-year wireless regulatory fees.'' Entities pay these regulatory
fees in advance for the entire amount of their five-year or ten-year
term of initial license, and only pay regulatory fees again when the
license is renewed or a new license is obtained. We include these
eleven categories in our Schedule of Regulatory Fees to publicize our
estimates of the number of ``small multi-year wireless'' licenses that
will be renewed or newly obtained in FY 2008.
Multichannel Video Programming Distributor Services (cable
television operators and CARS licensees): Regulatory fees must be paid
for the number of basic cable television subscribers as of December 31,
2007.\25\ Regulatory fees also must be paid for CARS licenses that were
granted on or before October 1, 2007. In instances where a CARS license
is transferred or assigned after October 1, 2007, responsibility for
payment rests with the holder of the license as of the fee due date.
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\25\ Cable television system operators should compute their
basic subscribers as follows: Number of single family dwellings +
number of individual households in multiple dwelling unit
(apartments, condominiums, mobile home parks, etc.) paying at the
basic subscriber rate + bulk rate customers + courtesy and free
service. Note: Bulk-Rate Customers = Total annual bulk-rate charge
divided by basic annual subscription rate for individual households.
Operators may base their count on ``a typical day in the last full
week'' of December 2007, rather than on a count as of December 31,
2007. But see para. 8-12 above.
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International Services: Regulatory fees must be paid for
earth stations, geostationary orbit space stations and non-
geostationary orbit satellite systems that were licensed and
operational on or before October 1, 2007. In instances where a license
is transferred or assigned after October 1, 2007, responsibility for
payment rests with the holder of the license as of the fee due date.
Regulatory fees must be paid for international bearer circuits based on
the number of active circuits as of December 31, 2007.\26\
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\26\ Regulatory fees for International Bearer Circuits are to be
paid by facilities-based common carriers that have active
international bearer circuits in any transmission facility for the
provision of service to an end user or resale carrier, which
includes active circuits to themselves or to their affiliates. In
addition, non-common carrier satellite operators must pay a fee for
each circuit sold or leased to any customer, including themselves or
their affiliates, other than an international common carrier
authorized by the Commission to provide U.S. international common
carrier services. Non-common carrier submarine cable operators are
also to pay fees for any and all international bearer circuits sold
on an indefeasible right of use (``IRU'') basis or leased to any
customer, including themselves or their affiliates, other than an
international common carrier authorized by the Commission to provide
U.S. international common carrier services. Non-common carrier
submarine cable operators are also to pay fees for any and all
international bearer circuits provided as a private line service to
an international common carrier authorized by the Commission to
provide U.S. international common carrier services. See Assessment
and Collection of Regulatory Fees for Fiscal Year 2001, MD Docket
No. 01-76, Report and Order, 16 FCC Rcd 13525, 13593 (2001);
Regulatory Fees Fact Sheet: What You Owe--International and
Satellite Services Licensees for FY 2004 at 3 (rel. July 2004) (the
fact sheet is available on the FCC Web site at: (http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-249904A4.pdf).
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B. Enforcement
34. Regulatory fee payment must be received and stamped at the
lockbox bank by the last day of the regulatory fee filing window, and
not merely postmarked by the last day of the window. As a reminder to
all licensees, section 9(c) of the Act requires us to impose an
additional charge as a penalty for late payment of any regulatory
fee.\27\ A late payment penalty of 25 percent of the amount of the
required regulatory fee will be assessed on the first day following the
deadline date for filing of these fees. Failure to pay regulatory fees
and/or any late penalty will subject regulatees to sanctions, including
the Commission's Red Light Rule \28\ and the provisions set forth in
the Debt Collection Improvement Act of 1996 (``DCIA'').\29\ We also
assess administrative processing charges on delinquent debts to recover
additional costs incurred in processing and handling the related debt
pursuant to the DCIA and section 1.1940(d) of the Commission's
rules.\30\ These administrative processing charges will be assessed on
any delinquent regulatory fee, in addition to the 25 percent late
charge penalty. In case of partial payments (underpayments) of
regulatory fees, the licensee will be given credit for the amount paid,
but if it is later determined that the fee paid is incorrect or not
timely paid, then the 25 percent late charge penalty (and other charges
and/or sanctions, as appropriate) will be assessed on the portion that
is not paid in a timely manner.
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\27\ 47 U.S.C. 159(c).
\28\ See 47 CFR 1.1910.
\29\ Delinquent debt owed to the Commission triggers application
of the ``red light rule'' which requires offsets or holds on pending
disbursements. 47 CFR 1.1910. In 2004, the Commission adopted rules
implementing the requirements of the DCIA. See Amendment of Parts 0
and 1 of the Commission's Rules, MD Docket No. 02-339, Report and
Order, 19 FCC Rcd 6540 (2004); 47 CFR part 1, subpart O, Collection
of Claims Owed the United States.
\30\ 47 CFR 1.1940(d).
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35. We will withhold action on any applications or other requests
for benefits filed by anyone who is delinquent in any non-tax debts
owed to the Commission (including regulatory fees) and will ultimately
dismiss those applications or other requests if payment of the
delinquent debt or other satisfactory arrangement for payment is not
made.\31\ Failure to pay regulatory fees can also result in the
initiation of a proceeding to revoke any and all authorizations held by
the entity responsible for paying the delinquent fee(s).\32\
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\31\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
\32\ See also para. 122, below.
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C. Initial Regulatory Flexibility Analysis
36. An initial regulatory flexibility analysis (``IRFA'') is
contained in Attachment A of the Appendix. Comments to the IRFA must be
identified as responses to the IRFA and filed by the deadlines for
comments on the Notice. The Commission will send a copy of the Notice,
including the IRFA, to the Chief Counsel for Advocacy of the Small
Business Administration.
D. Initial Paperwork Reduction Act Analysis
37. This Notice does not contain proposed or modified information
collections subject to the Paperwork Reduction Act of 1995 (``PRA''),
Public Law 104-13. This Notice does not contain any new or modified
``information collection burden for small business concerns with fewer
than 25 employees,'' pursuant to the Small Business Paperwork Relief
Act of 2002, Public Law 107-198.\33\ The forms already required by the
Commission's regulatory fee process have been approved by the Office of
Management and Budget under information collection 3060-0589.
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\33\ See 44 U.S.C. 3506(c)(4).
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E. Ex Parte Rules
38. This is as a ``permit-but-disclose'' proceeding subject to the
requirements under section 1.1206(b) of the Commission's rules.\34\ Ex
parte presentations are permissible if disclosed in accordance with
Commission rules, except during the Sunshine Agenda period when
presentations, ex parte or otherwise, are generally prohibited. Persons
making oral ex parte presentations are reminded
[[Page 30569]]
that a memorandum summarizing a presentation must contain a summary of
the substance of the presentation and not merely a listing of the
subjects discussed. More than a one- or two-sentence description of the
views and arguments presented is generally required.\35\ Additional
rules pertaining to oral and written presentations are set forth in
section 1.1206(b).
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\34\ See 47 CFR 1.1206(b); see also 47 CFR 1.1202, 1.1203.
\35\ See 47 CFR 1.1206(b)(2).
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F. Filing Requirements
39. Comments and Replies. Pursuant to sections 1.415 and 1.419 of
the Commission's rules,\36\ interested parties may file comments on or
before the dates indicated on the first page of this document. Comments
may be filed using: (1) The Commission's Electronic Comment Filing
System (``ECFS''), (2) the Federal Government's eRulemaking Portal, or
(3) procedures for filing paper copies.\37\
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\36\ See id. section 1.415, 1.419.
\37\ See Electronic Filing of Documents in Rulemaking
Proceedings, 13 FCC Rcd 11322 (1998).
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40. Electronic Filers: Comments may be filed electronically using
the Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs or the
Federal eRulemaking Portal: http://www.regulations.gov. Filers should
follow the instructions provided on the Web site for submitting
comments. For ECFS filers, if multiple docket or rulemaking numbers
appear in the caption of this proceeding, filers must transmit one
electronic copy of the comments for each docket or rulemaking number
referenced in the caption. In completing the transmittal screen, filers
should include their full name, U.S. Postal Service mailing address,
and the applicable docket or rulemaking number. Parties may also submit
an electronic comment by Internet e-mail. To get filing instructions,
filers should send an e-mail to [email protected], and include the following
words in the body of the message, ``get form.'' A sample form and
directions will be sent in response.
41. Paper Filers: Parties who choose to file by paper must file an
original and four copies of each filing. If more than one docket or
rulemaking number appears in the caption of this proceeding, filers
must submit two additional copies for each additional docket or
rulemaking number. Filings can be sent by hand or messenger delivery,
by commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail (although we continue to experience delays in
receiving U.S. Postal Service mail). All filings must be addressed to
the Commission's Secretary, Office of the Secretary, Federal
Communications Commission.
The Commission's contractor will receive hand-delivered or
messenger-delivered paper filings for the Commission's Secretary at 236
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be
held together with rubber bands or fasteners. Any envelopes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail should be addressed to 445 12th Street, SW., Washington, DC 20554.
42. Availability of Documents. Comments, reply comments, and ex
parte submissions will be available for public inspection during
regular business hours in the FCC Reference Center, Federal
Communications Commission, 445 12th Street, SW., CY-A257, Washington,
DC 20554. These documents will also be available free online, via ECFS.
Documents will be available electronically in ASCII, Word, and/or Adobe
Acrobat.
43. Accessibility Information. To request information in accessible
formats (computer diskettes, large print, audio recording, and
Braille), send an e-mail to [email protected] or call the FCC's Consumer
and Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-
0432 (TTY). This document can also be downloaded in Word and Portable
Document Format (``PDF'') at http://www.fcc.gov.
IV. Order
44. In WT Docket No. 03-66 (the ``BRS/EBS Proceeding''), the
Commission sought comment on proposed changes to the regulatory fee
structure for BRS.\38\ In 2006, the Commission adopted a new regulatory
fee structure for BRS (the ``2006 Decision'').\39\ Specifically, as
noted in the FY 2007 NPRM, the Commission adopted a megahertz-based
approach for BRS regulatory fees and, using a concept similar to the
Commission's annual scale of regulatory fees for broadcast television
stations, established in the 2006 Decision three rate tiers based on
the BTA ranking of each license.\40\ Under the 2006 Decision, BRS
regulatory fees will use a MHz-based formula with three tiers of fees
by markets. Instead of a flat fee amount per BRS license, BRS licensees
will pay a fee in one of three fee categories based on Basic Trading
Areas (``BTA'') ranked by population size.\41\ The highest fee will be
assessed to licenses in BTAs ranked 1-60, licenses in BTAs ranked 61-
200 will have a lesser fee, and licenses for BTAs ranked 201-493 will
pay the lowest fee.\42\
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\38\ See Amendment of Parts 1, 21, 73, 74 and 101 of the
Commission's Rules to Facilitate the Provision of Fixed and Mobile
Broadband Access, Educational and Other Advanced Services in the
2150-2162 and 2500-2690 MHz Bands, WT Docket No. 03-66, Report and
Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165,
14296, para. 357 (2004) (``BRS/EBS Report and Order and FNPRM'').
\39\ See Amendment of Parts 1, 21, 73, 74 and 101 of the
Commission's Rules to Facilitate the Provision of Fixed and Mobile
Broadband Access, Educational and Other Advanced Services in the
2150-2162 and 2500-2690 MHz Bands, WT Docket No. 03-66, Order on
Reconsideration and Fifth Memorandum Opinion and Order and Third
Memorandum Opinion and Order and Second Report and Order, 21 FCC Rcd
5606, 5756-59, para. 367-376 (2006) (``2006 Decision'').
\40\ See FY 2007 NPRM, 22 FCC Rcd at 7978, para. 8 n.8, citing
the 2006 Decision. The three tiers are based on three categories of
Basic Trading Areas (``BTA'') population rankings: BTAs 1-60, BTAs
61-200, and BTAs 201-493. For BRS licensees that are licensed by
geographic licensed service area (``GSA''), the BTA is the
geographic center point of where its GSA is located. See 2006
Decision, 21 FCC Rcd at 5759, para. 376.
\41\ See 2006 Decision, 21 FCC Rcd at 5759, para. 376.
\42\ Id.
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45. In the FY 2007 NPRM, we sought comment on the implementation of
the new BRS fee structure. Specifically, we invited commenters to
suggest a simple method of calculating BRS regulatory fees that
incorporates the complexity of using both elements of the 2006
Decision, namely, the three rate tiers, to be based on the BTA ranking
of each license, and the per megahertz fee.\43\ In particular, we
invited comment on a formula or method for calculating regulatory fees
that incorporates the 2006 Decision in a manner ``sensitive to rural
operators in less densely populated areas.\44\
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\43\ FY 2007 NPRM, 22 FCC Rcd at 7978, para. 8.
\44\ Id.
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46. In a Further Notice of Proposed Rulemaking, we proposed to use
a weighted average approach based on the 2006 Decision to establish
three tiers of regulatory fees using a 3:2:1 ratio, i.e., 3x for Tier
1, 2x for Tier 2, and 1x for Tier 3, where x equals the base fee amount
(Pro-rated FY Revenue Requirement for BRS divided by the weighted total
number of BRS payment units).\45\ In adopting three fee tiers for
[[Page 30570]]
BRS, the Commission considered that BTAs ranked 1-60 generally have a
population of greater than one million, BTAs ranked 61-200 generally
have population of 250,000 to one million, and BTAs ranked 201-493 have
a population of less than 250,000.\46\
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\45\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2007, MD Docket No. 07-81, Report and Order and Further Notice
of Proposed Rulemaking, 22 FCC Rcd 15712, 15726-15727, para. 46-50
(2007) (``2007 FNPRM'').
\46\ Id., 22 FCC Rcd at 15724-15725, para. 49.
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47. The second element of the 2006 Decision involved setting a fee
per megahertz of licensed BRS spectrum. However, throughout the nation,
BTA-by-BTA, the BRS radio service and its licensees are in the midst of
a multi-year transition to a new band plan that, among other things, is
modifying the amount of spectrum designated and licensed for BRS.\47\
Given the complexities associated with this ``moving target,'' we
tentatively concluded that the public interest would be best served by
implementing the fee per megahertz approach after the BRS transition
concludes nationwide.\48\
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\47\ The transition plan creates a process for relocating
Educational Broadband Service (``EBS'') licensees and BRS licensees
from their current channel locations to their new spectrum blocks in
the Lower Band Segment (``LBS''), Middle band Segment (``MBS''), or
Upper Band Segment (``UBS''). The transition occurs by BTA and is
undertaken by a proponent or multiple proponents. A proponent(s)
must pay the cost of transitioning EBS licensees. The transition
occurs in the following three phases: the Initiation Phase, the
Transition Planning Phase, and the Transition Completion Phase.
\48\ FY 2007 FNPRM, 22 FCC Rcd at 15727, para. 50.
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48. Comments on the 2007 FNPRM were filed by WCA \49\ and by the
law firm of Blooston, Mordkofsky, Dickens, Duffy, & Prendergast, LLP
(``BloostonLaw'').\50\ WCA continues to advocate basing regulatory fees
on a licensee's MHz/population, which the Commission has previously
rejected.\51\ WCA also advocates making no changes until the transition
is complete.\52\ BloostonLaw argues that there is insufficient
information in the record to conclude that this proposal would benefit
rural operators.\53\ BloostonLaw also contends that the fee should be
based on the population within the licensee's geographic service
area.\54\
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\49\ Comments of the Wireless Communications Association
International, Inc., MD Docket No. 07-81 (filed Sep. 17, 2007)
(``WCA Comments'').
\50\ Comments, Blooston, Mordkofsky, Dickens, Duffy, &
Prendergast, LLP, MD Docket No. 07-81 (filed Sep. 17, 2007)
(``BloostonLaw Comments'').
\51\ WCA Comments at 3-5.
\52\ WCA Comments at 1.
\53\ BloostonLaw Comments at 1-3.
\54\ Id. at 3-4.
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49. After reviewing the record, we now conclude that we will
continue the current practice of charging a flat fee per license until
the BRS/EBS transition to the new band plan. Neither of the commenters
supported the proposal contained in the 2007 FNPRM. Furthermore, WCA
urges that no changes be made until the transition is complete. We also
note that the transition is proceeding quickly. Transition initiation
plans have been filed in 355 out of 493 BTAs, and the transition has
been completed in 207 BTAs.\55\ Any changes we adopt could not take
effect until we adopt the changes, the Commission sends a report to
Congress, and 90 days passes. If the transition is complete in 2009 or
2010, which seems possible, the interim system proposed in the 2007
FNPRM could only be in place for one year. This effort would risk
confusing licensees, and we believe that devoting Commission resources
to implementing this interim system would be difficult to justify.
Accordingly, we conclude that we will maintain the current system of
charging a flat, per-license fee until the transition to the new band
plan is complete.
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\55\ As of 2/1/08.
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V. Ordering Clauses
50. Accordingly, It is Ordered that, pursuant to sections 4(i) and
(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47
U.S.C. 154(i), 154(j), 159, and 303(r), this Notice of Proposed
Rulemaking and Order is hereby adopted.
51. It is Further Ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, Shall Send a
copy of this Notice of Proposed Rulemaking, including the Initial
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of
the U.S. Small Business Administration.
Federal Communications Commission.
Gloria J. Miles,
Federal Register Liaison.
Attachment A--Initial Regulatory Flexibility Analysis
52. As required by the Regulatory Flexibility Act (``RFA''),\56\
the Commission has prepared this Initial Regulatory Flexibility
Analysis (``IRFA'') of the possible significant economic impact on
small entities by the policies and rules in the present NPRM. Written
public comments are requested on this IRFA. Comments must be identified
as responses to the IRFA and must be filed on or before the dates
indicated on the first page of this NPRM. The Commission will send a
copy of the NPRM, including the IRFA, to the Chief Counsel for Advocacy
of the Small Business Administration.\57\ In addition, the NPRM and
IRFA (or summaries thereof) will be published in the Federal
Register.\58\
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\56\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by
the Contract With America Advancement Act of 1996, Public Law 104-
121, 110 Stat. 847 (1996) (``CWAAA''). Title II of the CWAAA is the
Small Business Regulatory Enforcement Fairness Act of 1996
(``SBREFA'').
\57\ 5 U.S.C. 603(a).
\58\ Id.
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I. Need for, and Objectives of, the Proposed Rules
53. This rulemaking proceeding is initiated to obtain comments
concerning the Commission's proposed amendment of its Schedule of
Regulatory Fees in the amount of $312,000,000, the amount that Congress
has required the Commission to recover. The Commission seeks to collect
the necessary amount through its proposed Schedule of Regulatory Fees
in the most efficient manner possible and without undue public burden.
II. Legal Basis
54. This action, including publication of proposed rules, is
authorized under sections (4)(i) and (j), 9, and 303(r) of the
Communications Act of 1934, as amended.\59\
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\59\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
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III. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply
55. The RFA directs agencies to provide a description of, and where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules and policies, if adopted.\60\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \61\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\62\ A ``small business concern'' is one
which: (1) Is independently owned and operated; (2) is not dominant in
its field of operation; and (3) satisfies any additional criteria
established by the SBA.\63\
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\60\ 5 U.S.C. 603(b)(3).
\61\ 5 U.S.C. 601(6).
\62\ 5 U.S.C. 601(3) (incorporating by reference the definition
of ``small-business concern'' in the Small Business Act, 15 U.S.C.
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a
small business applies ``unless an agency, after consultation with
the Office of Advocacy of the Small Business Administration and
after opportunity for public comment, establishes one or more
definitions of such term which are appropriate to the activities of
the agency and publishes such definition(s) in the Federal
Register.''
\63\ 15 U.S.C. 632.
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[[Page 30571]]
56. Small Businesses. Nationwide, there are a total of 22.4 million
small businesses, according to SBA data.\64\
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\64\ See SBA, Programs and Services, SBA Pamphlet No. CO-0028,
at p. 40 (July 2002).
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57. Small Organizations. Nationwide, there are approximately 1.6
million small organizations.\65\
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\65\ Independent Sector, The New Nonprofit Almanac & Desk
Reference (2002).
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58. Small Governmental Jurisdictions. The term ``small governmental
jurisdiction'' is defined generally as ``governments of cities, towns,
townships, villages, school districts, or special districts, with a
population of less than fifty thousand.'' \66\ Census Bureau data for
2002 indicate that there were 87,525 local governmental jurisdictions
in the United States.\67\ We estimate that, of this total, 84,377
entities were ``small governmental jurisdictions.'' \68\ Thus, we
estimate that most governmental jurisdictions are small.
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\66\ 5 U.S.C. 601(5).
\67\ U.S. Census Bureau, Statistical Abstract of the United
States: 2006, Section 8, p. 272, Table 415.
\68\ We assume that the villages, school districts, and special
districts are small, and total 48,558. See U.S. Census Bureau,
Statistical Abstract of the United States: 2006, section 8, p. 273,
Table 417. For 2002, Census Bureau data indicate that the total
number of county, municipal, and township governments nationwide was
38,967, of which 35,819 were small. Id.
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59. We have included small incumbent local exchange carriers in
this present RFA analysis. As noted above, a ``small business'' under
the RFA is one that, inter alia, meets the pertinent small business
size standard (e.g., a telephone communications business having 1,500
or fewer employees), and ``is not dominant in its field of operation.''
\69\ The SBA's Office of Advocacy contends that, for RFA purposes,
small incumbent local exchange carriers are not dominant in their field
of operation because any such dominance is not ``national'' in
scope.\70\ We have therefore included small incumbent local exchange
carriers in this RFA analysis, although we emphasize that this RFA
action has no effect on Commission analyses and determinations in
other, non-RFA contexts.
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\69\ 15 U.S.C. 632.
\70\ Letter from Jere W. Glover, Chief Counsel for Advocacy,
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small
Business Act contains a definition of ``small-business concern,''
which the RFA incorporates into its own definition of ``small
business.'' See 15 U.S.C. 632(a) (``Small Business Act''); 5 U.S.C.
601(3) (``RFA''). SBA regulations interpret ``small business
concern'' to include the concept of dominance on a national basis.
See 13 CFR 121.102(b).
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60. Incumbent Local Exchange Carriers (``ILECs''). Neither the
Commission nor the SBA has developed a small business size standard
specifically for incumbent local exchange services. The appropriate
size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or fewer employees.\71\ According to
Commission data,\72\ 1,303 carriers have reported that they are engaged
in the provision of incumbent local exchange services. Of these 1,303
carriers, an estimated 1,020 have 1,500 or fewer employees and 283 have
more than 1,500 employees. Consequently, the Commission estimates that
most providers of incumbent local exchange service are small businesses
that may be affected by our proposed action.
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\71\ 13 CFR 121.201, North American Industry Classification
System (NAICS) code 517110.
\72\ FCC, Wireline Competition Bureau, Industry Analysis and
Technology Division, ``Trends in Telephone Service'' at Table 5.3,
Page 5-5 (June 2005) (``Trends in Telephone Service''). This source
uses data that are current as of October 1, 2004.
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61. Competitive Local Exchange Carriers (``CLECs''), Competitive
Access Providers (``CAPs''), ``Shared-Tenant Service Providers,'' and
``Other Local Service Providers.'' Neither the Commission nor the SBA
has developed a small business size standard specifically for these
service providers. The appropriate size standard under SBA rules is for
the category Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer
employees.\73\ According to Commission data,\74\ 769 carriers have
reported that they are engaged in the provision of either competitive
access provider services or competitive local exchange carrier
services. Of these 769 carriers, an estimated 676 have 1,500 or fewer
employees and 94 have more than 1,500 employees. In addition, 12
carriers have reported that they are ``Shared-Tenant Service
Providers,'' and all 12 are estimated to have 1,500 or fewer employees.
In addition, 39 carriers have reported that they are ``Other Local
Service Providers.'' Of the 39, an estimated 38 have 1,500 or fewer
employees and one has more than 1,500 employees. Consequently, the
Commission estimates that most providers of competitive local exchange
service, competitive access providers, ``Shared-Tenant Service
Providers,'' and ``Other Local Service Providers'' are small entities
that may be affected by our proposed action.
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\73\ 13 CFR 121.201, NAICS code 517110.
\74\ ``Trends in Telephone Service'' at Table 5.3.
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62. Local Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees.\75\ According to Commission data,\76\ 143 carriers have
reported that they are engaged in the provision of local resale
services. Of these, an estimated 141 have 1,500 or fewer employees and
two have more than 1,500 employees. Consequently, the Commission
estimates that the majority of local resellers are small entities that
may be affected by our proposed action.
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\75\ 13 CFR 121.201, NAICS code 517310.
\76\ ``Trends in Telephone Service'' at Table 5.3.
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63. Toll Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees.\77\ According to Commission data,\78\ 770 carriers have
reported that they are engaged in the provision of toll resale
services. Of these, an estimated 747 have 1,500 or fewer employees and
23 have more than 1,500 employees. Consequently, the Commission
estimates that the majority of toll resellers are small entities that
may be affected by our proposed action.
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\77\ 13 CFR 121.201, NAICS code 517310.
\78\ ``Trends in Telephone Service'' at Table 5.3.
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64. Payphone Service Providers (``PSPs''). Neither the Commission
nor the SBA has developed a small business size standard specifically
for payphone services providers. The appropriate size standard under
SBA rules is for the category Wired Telecommunications Carriers. Under
that size standard, such a business is small if it has 1,500 or fewer
employees.\79\ According to Commission data,\80\ 654 carriers have
reported that they are engaged in the provision of payphone services.
Of these, an estimated 652 have 1,500 or fewer employees and two have
more than 1,500 employees. Consequently, the Commission estimates that
the majority of payphone service providers are small entities that may
be affected by our proposed action.
---------------------------------------------------------------------------
\79\ 3 CFR 121.201, NAICS code 517110.
\80\ ``Trends in Telephone Service'' at Table 5.3.
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65. Interexchange Carriers (``IXCs''). Neither the Commission nor
the SBA has developed a small business size standard specifically for
providers of interexchange services. The appropriate size standard
under SBA rules is for the category Wired Telecommunications Carriers.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\81\ According to Commission data,\82\ 316 carriers
have
[[Page 30572]]
reported that they are engaged in the provision of interexchange
service. Of these, an estimated 292 have 1,500 or fewer employees and
24 have more than 1,500 employees. Consequently, the Commission
estimates that the majority of IXCs are small entities that may be
affected by our proposed action.
---------------------------------------------------------------------------
\81\ 13 CFR 121.201, NAICS code 517110.
\82\ ``Trends in Telephone Service'' at Table 5.3.
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66. Operator Service Providers (``OSPs''). Neither the Commission
nor the SBA has developed a small business size standard specifically
for operator service providers. The appropriate size standard under SBA
rules is for the category Wired Telecommunications Carriers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees.\83\ According to Commission data,\84\ 23 carriers have
reported that they are engaged in the provision of operator services.
Of these, an estimated 20 have 1,500 or fewer employees and three have
more than 1,500 employees. Consequently, the Commission estimates that
the majority of OSPs are small entities that may be affected by our
proposed action.
---------------------------------------------------------------------------
\83\ 13 CFR 121.201, NAICS code 517110.
\84\ ``Trends in Telephone Service'' at Table 5.3.
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67. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business size standard specifically for
prepaid calling card providers. The appropriate size standard under SBA
rules is for the category Telecommunications Resellers. Under that size
standard, such a business is small if it has 1,500 or fewer
employees.\85\ According to Commission data,\86\ 89 carriers have
reported that they are engaged in the provision of prepaid calling
cards. Of these, an estimated 88 have 1,500 or fewer employees and one
has more than 1,500 employees. Consequently, the Commission estimates
that the majority of prepaid calling card providers are small entities
that may be affected by our proposed action.
---------------------------------------------------------------------------
\85\ 13 CFR 121.201, NAICS code 517310.
\86\ ``Trends in Telephone Service'' at Table 5.3.
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68. 800 and 800-Like Service Subscribers.\87\ Neither the
Commission nor the SBA has developed a small business size standard
specifically for 800 and 800-like service (``toll free'') subscribers.
The appropriate size standard under SBA rules is for the category
Telecommunications Resellers. Under that size standard, such a business
is small if it has 1,500 or fewer employees.\88\ The most reliable
source of information regarding the number of these service subscribers
appears to be data the Commission receives from Database Service
Management on the 800, 866, 877, and 888 numbers in use.\89\ According
to our data, at the end of December 2004, the number of 800 numbers
assigned was 7,540,453; the number of 888 numbers assigned was
5,947,789; the number of 877 numbers assigned was 4,805,568; and the
number of 866 numbers assigned was 5,011,291. We do not have data
specifying the number of these subscribers that are independently owned
and operated or have 1,500 or fewer employees, and thus are unable at
this time to estimate with greater precision the number of toll free
subscribers that would qualify as small businesses under the SBA size
standard. Consequently, we estimate that there are 7,540,453 or fewer
small entity 800 subscribers; 5,947,789 or fewer small entity 888
subscribers; 4,805,568 or fewer small entity 877 subscribers, and
5,011,291 or fewer entity 866 subscribers.
---------------------------------------------------------------------------
\87\ We include all toll-free number subscribers in this
category.
\88\ 13 CFR 121.201, NAICS code 517310.
\89\ ``Trends in Telephone Service'' at Tables 18.4, 18.5, 18.6,
and 18.7.
---------------------------------------------------------------------------
69. International Service Providers. There is no small business
size standard developed specifically for providers of international
service. The appropriate size standards under SBA rules are for the two
broad census categories of ``Satellite Telecommunications'' and ``Other
Telecommunications.'' Under both categories, such a business is small
if it has $13.5 million or less in average annual receipts.\90\
---------------------------------------------------------------------------
\90\ 13 CFR 121.201, NAICS codes 517410 and 517910.
---------------------------------------------------------------------------
70. The first category of Satellite Telecommunications ``comprises
establishments primarily engaged in providing point-to-point
telecommunications services to other establishments in the
telecommunications and broadcasting industries by forwarding and
receiving communications signals via a system of satellites or
reselling satellite telecommunications.'' \91\ For this category,
Census Bureau data for 2002 show that there were a total of 371 firms
that operated for the entire year.\92\ Of this total, 307 firms had
annual receipts of under $10 million, and 26 firms had receipts of $10
million to $24,999,999.\93\ Consequently, we estimate that the majority
of Satellite Telecommunications firms are small entities that might be
affected by our action.
---------------------------------------------------------------------------
\91\ U.S. Census Bureau, 2002 NAICS Definitions, ``517410
Satellite Telecommunications''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
\92\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 517410.
\93\ Id. An additional 38 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------
71. The second category of Other Telecommunications ``comprises
establishments primarily engaged in (1) providing specialized
telecommunications applications, such as satellite tracking,
communications telemetry, and radar station operations; or (2)
providing satellite terminal stations and associated facilities
operationally connected with one or more terrestrial communications
systems and capable of transmitting telecommunications to or receiving
telecommunications from satellite systems.'' \94\ For this category,
Census Bureau data for 2002 show that there were a total of 332 firms
that operated for the entire year.\95\ Of this total, 259 firms had
annual receipts of under $10 million and 15 firms had annual receipts
of $10 million to $24,999,999.\96\ Consequently, we estimate that the
majority of Other Telecommunications firms are small entities that
might be affected by our action.
---------------------------------------------------------------------------
\94\ U.S. Census Bureau, 2002 NAICS Definitions, ``517910 Other
Telecommunications''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
\95\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 517910.
\96\ Id. An additional 14 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------
72. Wireless Service Providers. The SBA has developed a small
business size standard for wireless firms within the two broad economic
census categories of ``Paging'' \97\ and ``Cellular and Other Wireless
Telecommunications.'' \98\ Under both categories, the SBA deems a
wireless business to be small if it has 1,500 or fewer employees. For
the census category of Paging, Census Bureau data for 2002 show that
there were 807 firms in this category that operated for the entire
year.\99\ Of this total, 804 firms had employment of 999 or fewer
employees, and three firms had employment of 1,000 employees or
more.\100\ Thus, under this category and associated small business size
standard, the majority of firms can be considered small. For the census
category of Cellular and Other Wireless Telecommunications, Census
Bureau data for 2002 show that there were 1,397 firms in this category
that
[[Page 30573]]
operated for the entire year.\101\ Of this total, 1,378 firms had
employment of 999 or fewer employees, and 19 firms had employment of
1,000 employees or more.\102\ Thus, under this second category and size
standard, the majority of firms can, again, be considered small.
---------------------------------------------------------------------------
\97\ 13 CFR 121.201, NAICS code 517211.
\98\ 13 CFR 121.201, NAICS code 517212.
\99\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517211.
\100\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is for firms with ``1000
employees or more.''
\101\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 5, NAICS code 517212.
\102\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is for firms with ``1000
employees or more.''
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73. Internet Service Providers. The SBA has developed a small
business size standard for Internet Service Providers. This category
comprises establishments ``primarily engaged in providing direct access
through telecommunications networks to computer-held information
compiled or published by others.'' \103\ Under the SBA size standard,
such a business is small if it has average annual receipts of $21
million or less.\104\ According to Census Bureau data for 1997, there
were 2,751 firms in this category that operated for the entire
year.\105\ Of these, 2,659 firms had annual receipts of under $10
million, and an additional 67 firms had receipts of between $10 million
and $24,999,999.\106\ Thus, under this size standard, the great
majority of firms can be considered small entities.
---------------------------------------------------------------------------
\103\ Office of Management and Budget, North American Industry
Classification System, p. 515 (1997). NAICS code 518111, ``On-Line
Information Services.''
\104\ 13 CFR 121.201, NAICS code 518111.
\105\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 4, Receipts Size of Firms Subject to Federal
Income Tax: 1997, NAICS code 514191.
\106\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 4, Receipts Size of Firms Subject to Federal
Income Tax: 1997, NAICS code 514191.
---------------------------------------------------------------------------
74. Cellular Licensees. The SBA has developed a small business size
standard for wireless firms within the two broad economic census
categories of ``Paging'' \107\ and ``Cellular and Other Wireless
Telecommunications.'' \108\ Under both categories, the SBA deems a
wireless business to be small if it has 1,500 or fewer employees. For
the census category of Paging, Census Bureau data for 2002 show that
there were 807 firms in this category that operated for the entire
year.\109\ Of this total, 804 firms had employment of 999 or fewer
employees, and three firms had employment of 1,000 employees or
more.\110\ Thus, under this category and associated small business size
standard, the majority of firms can be considered small. For the census
category of Cellular and Other Wireless Telecommunications, Census
Bureau data for 2002 show that there were 1,397 firms in this category
that operated for the entire year.\111\ Of this total, 1,378 firms had
employment of 999 or fewer employees, and 19 firms had employment of
1,000 employees or more.\112\ Thus, under this second category and size
standard, the majority of firms can, again, be considered small.
---------------------------------------------------------------------------
\107\ 13 CFR 121.201, NAICS code 517211.
\108\ 13 CFR 121.201, NAICS code 517212.
\109\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517211.
\110\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is for firms with ``1000
employees or more.''
\111\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517212.
\112\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is for firms with ``1000
employees or more.''
---------------------------------------------------------------------------
75. Common Carrier Paging. As noted, the SBA has developed a small
business size standard for wireless firms within the broad economic
census categories of ``Cellular and Other Wireless
Telecommunications.'' \113\ Under this SBA category, a wireless
business is small if it has 1,500 or fewer employees. For the census
category of Paging, U.S. Census Bureau data for 1997 show that there
were 1,320 firms in this category, total, that operated for the entire
year.\114\ Of this total, 1,303 firms had employment of 999 or fewer
employees, and an additional 17 firms had employment of 1,000 employees
or more.\115\ Thus, under this category and associated small business
size standard, the great majority of firms can be considered small.
---------------------------------------------------------------------------
\113\ 13 CFR 121.201, NAICS code 517212.
\114\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 5, Employment Size of Firms Subject to
Federal Income Tax: 1997, NAICS code 513321.
\115\ U.S. Census Bureau, 1997 Economic Census, Subject Series:
``Information,'' Table 5, Employment Size of Firms Subject to
Federal Income Tax: 1997, NAICS code 513321. The census data do not
provide a more precise estimate of the number of firms that have
employment of 1,500 or fewer employees; the largest category
provided is ``Firms with 1000 employees or more.''
---------------------------------------------------------------------------
76. In addition, in the Paging Second Report and Order, the
Commission adopted a size standard for ``small businesses'' for
purposes of determining their eligibility for special provisions such
as bidding credits and installment payments.\116\ A small business is
an entity that, together with its affiliates and controlling
principals, has average gross revenues not exceeding $15 million for
the preceding three years.\117\ The SBA has approved this
definition.\118\ An auction of Metropolitan Economic Area (``MEA'')
licenses commenced on February 24, 2000, and closed on March 2, 2000.
Of the 2,499 licenses auctioned, 985 were sold.\119\ Fifty-seven
companies claiming small business status won 440 licenses.\120\ An
auction of MEA and Economic Area (``EA'') licenses commenced on October
30, 2001, and closed on December 5, 2001. Of the 15,514 licenses
auctioned, 5,323 were sold.\121\ One hundred thirty-two companies
claiming small business status purchased 3,724 licenses. A third
auction, consisting of 8,874 licenses in each of 175 EAs and 1,328
licenses in all but three of the 51 MEAs commenced on May 13, 2003, and
closed on May 28, 2003. Seventy-seven bidders claiming small or very
small business status won 2,093 licenses.\122\ Currently, there are
approximately 74,000 Common Carrier Paging licenses. According to the
most recent Trends in Telephone Service, 408 private and common
carriers reported that they were engaged in the provision of either
paging or ``other mobile'' services.\123\ Of these, we estimate that
589 are small, under the SBA-approved small business size
standard.\124\ We estimate that the majority of common carrier paging
providers would qualify as small entities under the SBA definition.
---------------------------------------------------------------------------
\116\ Revision of Part 22 and Part 90 of the Commission's Rules
to Facilitate Future Development of Paging Systems, Second Report
and Order, 12 FCC Rcd 2732, 2811-2812, paras. 178-181 (``Paging
Second Report and Order''); see also Revision of Part 22 and Part 90
of the Commission's Rules to Facilitate Future Development of Paging
Systems, Memorandum Opinion and Order on Reconsideration, 14 FCC Rcd
10030, 10085-10088, paras. 98-107 (1999).
\117\ Paging Second Report and Order, 12 FCC Rcd at 2811, para.
179.
\118\ See Letter from Aida Alvarez, Administrator, SBA, to Amy
Zoslov, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau (``WTB''), FCC (Dec. 2, 1998) (``Alvarez
Letter 1998'').
\119\ See ``929 and 931 MHz Paging Auction Closes,'' Public
Notice, 15 FCC Rcd 4858 (WTB 2000).
\120\ See id.
\121\ See ``Lower and Upper Paging Band Auction Closes,'' Public
Notice, 16 FCC Rcd 21821 (WTB 2002).
\122\ See ``Lower and Upper Paging Bands Auction Closes,''
Public Notice, 18 FCC Rcd 11154 (WTB 2003).
\123\ ``Trends in Telephone Service'' at Table 5.3.
\124\ 13 CFR 121.201, NAICS code 517211.
---------------------------------------------------------------------------
77. Wireless Communications Services. This service can be used for
fixed, mobile, radiolocation, and digital audio broadcasting satellite
uses. The Commission defined ``small business'' for the wireless
communications services (``WCS'') auction as an entity
[[Page 30574]]
with average gross revenues of $40 million for each of the three
preceding years, and a ``very small business'' as an entity with
average gross revenues of $15 million for each of the three preceding
years.\125\ The SBA has approved these definitions.\126\ The Commission
auctioned geographic area licenses in the WCS service. In the auction,
which commenced on April 15, 1997 and closed on April 25, 1997, there
were seven bidders that won 31 licenses that qualified as very small
business entities, and one bidder that won one license that qualified
as a small business entity.
---------------------------------------------------------------------------
\125\ Amendment of the Commission's Rules to Establish Part 27,
the Wireless Communications Service (WCS), Report and Order, 12 FCC
Rcd 10785, 10879, para. 194 (1997).
\126\ See Alvarez Letter 1998.
---------------------------------------------------------------------------
78. 1670-1675 MHz Services. An auction for one license in the 1670-
1675 MHz band commenced on April 30, 2003 and closed the same day. One
license was awarded. The winning bidder was not a small entity.
79. Wireless Telephony. Wireless telephony includes cellular,
personal communications services, and specialized mobile radio
telephony carriers. The SBA has developed a small business size
standard for ``Cellular and Other Wireless Telecommunications''
services.\127\ Under the SBA small business size standard, a business
is small if it has 1,500 or fewer employees.\128\ According to Trends
in Telephone Service data, 437 carriers reported that they were engaged
in wireless telephony.\129\ We have estimated that 260 of these are
small under the SBA small business size standard.
---------------------------------------------------------------------------
\127\ 13 CFR 121.201, NAICS code 517212.
\128\ 13 CFR 121.201, NAICS code 517212.
\129\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------
80. Broadband Personal Communications Service. The broadband
personal communications services (``PCS'') spectrum is divided into six
frequency blocks designated A through F, and the Commission has held
auctions for each block. The Commission has created a small business
size standard for Blocks C and F as an entity that has average gross
revenues of less than $40 million in the three previous calendar
years.\130\ For Block F, an additional small business size standard for
``very small business'' was added and is defined as an entity that,
together with its affiliates, has average gross revenues of not more
than $15 million for the preceding three calendar years.\131\ These
small business size standards, in the context of broadband PCS
auctions, have been approved by the SBA.\132\ No small businesses
within the SBA-approved small business size standards bid successfully
for licenses in Blocks A and B. There were 90 winning bidders that
qualified as small entities in the Block C auctions. A total of 93
``small'' and ``very small'' business bidders won approximately 40
percent of the 1,479 licenses for Blocks D, E, and F.\133\ On March 23,
1999, the Commission reauctioned 155 C, D, E, and F Block licenses;
there were 113 small business winning bidders.\134\
---------------------------------------------------------------------------
\130\ See Amendment of Parts 20 and 24 of the Commission's
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7850-
7852, paras. 57-60 (1996) (``PCS Report and Order''); see also 47
CFR 24.720(b).
\131\ See PCS Report and Order, 11 FCC Rcd at 7852, para. 60.
\132\ See Alvarez Letter 1998.
\133\ FCC News, ``Broadband PCS, D, E and F Block Auction
Closes,'' No. 71744 (rel. Jan. 14, 1997).
\134\ See ``C, D, E, and F Block Broadband PCS Auction Closes,''
Public Notice, 14 FCC Rcd 6688 (WTB 1999).
---------------------------------------------------------------------------
81. On January 26, 2001, the Commission completed the auction of
422 C and F Broadband PCS licenses in Auction No. 35. Of the 35 winning
bidders in this auction, 29 qualified as ``small'' or ``very small''
businesses.\135\ Subsequent events, concerning Auction 35, including
judicial and agency determinations, resulted in a total of 163 C and F
Block licenses being available for grant. On February 15, 2005, the
Commission completed an auction of 188 C block licenses and 21 F block
licenses in Auction No. 58. There were 24 winning bidders for 217
licenses.\136\ Of the 24 winning bidders, 16 claimed small business
status and won 156 licenses. On May 21, 2007, the Commission completed
an auction of 33 licenses in the A, C, and F Blocks in Auction No.
71.\137\ Of the 14 winning bidders, six were designated entities.\138\
---------------------------------------------------------------------------
\135\ See ``C and F Block Broadband PCS Auction Closes; Winning
Bidders Announced,'' Public Notice, 16 FCC Rcd 2339 (2001).
\136\ See ``Broadband PCS Spectrum Auction Closes; Winning
Bidders Announced for Auction No. 58,'' Public Notice, 20 FCC Rcd
3703 (2005).
\137\ See ``Auction of Broadband PCS Spectrum Licenses Closes;
Winning Bidders Announced for Auction No. 71,'' Public Notice, 22
FCC Rcd 9247 (2007).
\138\ Id.
---------------------------------------------------------------------------
82. Narrowband Personal Communications Services. The Commission
held an auction for Narrowband PCS licenses that commenced on July 25,
1994, and closed on July 29, 1994. A second auction commenced on
October 26, 1994 and closed on November 8, 1994. For purposes of the
first two Narrowband PCS auctions, ``small businesses'' were entities
with average gross revenues for the prior three calendar years of $40
million or less.\139\ Through these auctions, the Commission awarded a
total of 41 licenses, 11 of which were obtained by four small
businesses.\140\ To ensure meaningful participation by small business
entities in future auctions, the Commission adopted a two-tiered small
business size standard in the Narrowband PCS Second Report and
Order.\141\ A ``small business'' is an entity that, together with
affiliates and controlling interests, has average gross revenues for
the three preceding years of not more than $40 million.\142\ A ``very
small business'' is an entity that, together with affiliates and
controlling interests, has average gross revenues for the three
preceding years of not more than $15 million.\143\ The SBA has approved
these small business size standards.\144\ A third auction commenced on
October 3, 2001 and closed on October 16, 2001. Here, five bidders won
317 (Metropolitan Trading Areas and nationwide) licenses.\145\ Three of
these claimed status as a small or very small entity and won 311
licenses.
---------------------------------------------------------------------------
\139\ Implementation of Section 309(j) of the Communications
Act--Competitive Bidding Narrowband PCS, Third Memorandum Opinion
and Order and Further Notice of Proposed Rulemaking, 10 FCC Rcd 175,
196, para. 46 (1994).
\140\ See ``Announcing the High Bidders in the Auction of ten
Nationwide Narrowband PCS Licenses, Winning Bids Total
$617,006,674,'' Public Notice, PNWL 94-004 (rel. Aug. 2, 1994);
``Announcing the High Bidders in the Auction of 30 Regional
Narrowband PCS Licenses; Winning Bids Total $490,901,787,'' Public
Notice, PNWL 94-27 (rel. Nov. 9, 1994).
\141\ Amendment of the Commission's Rules to Establish New
Personal Communications Services, Narrowband PCS, Second Report and
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd
10456, 10476, para. 40 (2000) (``Narrowband PCS Second Report and
Order'').
\142\ Narrowband PCS Second Report and Order, 15 FCC Rcd at
10476, para. 40.
\143\ Id.
\144\ See Alvarez Letter 1998.
\145\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16
FCC Rcd 18663 (WTB 2001).
---------------------------------------------------------------------------
83. Lower 700 MHz Band Licenses. The Commission previously adopted
criteria for defining three groups of small businesses for purposes of
determining their eligibility for special provisions such as bidding
credits.\146\ The Commission defined a ``small business'' as an entity
that, together with its affiliates and controlling principals, has
average gross revenues not exceeding $40 million for the preceding
three years.\147\ A ``very small business'' is defined as an entity
that,
[[Page 30575]]
together with its affiliates and controlling principals, has average
gross revenues that are not more than $15 million for the preceding
three years.\148\ Additionally, the lower 700 MHz Service had a third
category of small business status for Metropolitan/Rural Service Area
(``MSA/RSA'') licenses. The third category is ``entrepreneur,'' which
is defined as an entity that, together with its affiliates and
controlling principals, has average gross revenues that are not more
than $3 million for the preceding three years.\149\ The SBA approved
these small size standards.\150\ An auction of 740 licenses (one
license in each of the 734 MSAs/RSAs and one license in each of the six
Economic Area Groupings (EAGs)) commenced on August 27, 2002, and
closed on September 18, 2002. Of the 740 licenses available for
auction, 484 licenses were sold to 102 winning bidders. Seventy-two of
the winning bidders claimed small business, very small business or
entrepreneur status and won a total of 329 licenses.\151\ A second
auction commenced on May 28, 2003, and closed on June 13, 2003, and
included 256 licenses: 5 EAG licenses and 476 Cellular Market Area
licenses.\152\ Seventeen winning bidders claimed small or very small
business status and won 60 licenses, and nine winning bidders claimed
entrepreneur status and won 154 licenses.\153\ On July 26, 2005, the
Commission completed an auction of 5 licenses in the Lower 700 MHz band
(Auction No. 60). There were three winning bidders for five licenses.
All three winning bidders claimed small business status.
---------------------------------------------------------------------------
\146\ See Reallocation and Service Rules for the 698-746 MHz
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC
Rcd 1022 (2002) (``Channels 52-59 Report and Order'').
\147\ See Channels 52-59 Report and Order, 17 FCC Rcd at 1087-
88, para. 172.
\148\ See id.
\149\ See id, 17 FCC Rcd at 1088, para. 173.
\150\ See Letter from Aida Alvarez, Administrator, SBA, to
Thomas Sugrue, Chief, WTB, FCC (Aug. 10, 1999) (``Alvarez Letter
1999'').
\151\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
17 FCC Rcd 17272 (WTB 2002).
\152\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
18 FCC Rcd 11873 (WTB 2003).
\153\ See id.
---------------------------------------------------------------------------
84. The Commission recently reexamined its rules governing the 700
MHz band in the 700 MHz Second Report and Order.\154\ An auction of 700
MHz licenses commenced January 24, 2008. For the Lower 700 MHz band,
176 licenses over Economic Areas in the A Block, 734 licenses over
Cellular Market Areas in the B Block, and 176 licenses over EAs in the
E Block are available for licensing.\155\ Winning bidders may be
eligible for small business status (those with attributable average
annual gross revenues that exceed $15 million and do not exceed $40
million for the preceding three years), or very small business status
(those with attributable average annual gross revenues that do not
exceed $15 million for the preceding three years).
---------------------------------------------------------------------------
\154\ Service Rules for the 698-746, 747-762 and 777-792 MHz
Bands, WT Docket No. 06-150, Revision of the Commission's Rules to
Ensure Compatibility with Enhanced 911 Emergency Calling Systems, CC
Docket No. 94-102, Section 68.4(a) of the Commission's Rules
Governing Hearing Aid-Compatible Telephones, WT Docket No. 01-309,
Biennial Regulatory Review--Amendment of Parts 1, 22, 24, 27, and 90
to Streamline and Harmonize Various Rules Affecting Wireless Radio
Services, WT Docket 03-264, Former Nextel Communications, Inc. Upper
700 MHz Guard Band Licenses and Revisions to Part 27 of the
Commission's Rules, WT Docket No. 06-169, Implementing a Nationwide,
Broadband, Interoperable Public Safety Network in the 700 MHz Band,
PS Docket No. 06-229, Development of Operational, Technical and
Spectrum Requirements for Meeting Federal, State and Local Public
Safety Communications Requirements Through the Year 2010, WT Docket
No. 96-86, Second Report and Order, FCC 07-132 (2007) (``700 MHz
Second Report and Order'').
\155\ See ``Auction of 700 MHz Band Licenses Scheduled for
January 16, 2008; Comment Sought on Competitive Bidding Procedures
For Auction 73,'' Public Notice, FCC Rcd 15004 (WTB 2007).
---------------------------------------------------------------------------
85. Upper 700 MHz Band Licenses. In the 700 MHz Second Report and
Order, the Commission revised its rules regarding Upper 700 MHz
licenses. On January 24, 2008, the Commission commenced Auction 73 in
which several licenses in the Upper 700 MHz band are available for
licensing: 12 licenses over Regional Economic Area Groupings
(``REAGs'') in the C Block, and one nationwide license in the D
Block.\156\ Winning bidders may be eligible for small business status
(those with attributable average annual gross revenues that exceed $15
million and do not exceed $40 million for the preceding three years),
or very small business status (those with attributable average annual
gross revenues that do not exceed $15 million for the preceding three
years).
---------------------------------------------------------------------------
\156\ See id.
---------------------------------------------------------------------------
86. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order,
the Commission adopted size standards for ``small businesses'' and
``very small businesses'' for purposes of determining their eligibility
for special provisions such as bidding credits and installment
payments.\157\ A small business in this service is an entity that,
together with its affiliates and controlling principals, has average
gross revenues not exceeding $40 million for the preceding three
years.\158\ Additionally, a very small business is an entity that,
together with its affiliates and controlling principals, has average
gross revenues that are not more than $15 million for the preceding
three years.\159\ SBA approval of these definitions is not
required.\160\ An auction of 52 Major Economic Area (``MEA'') licenses
commenced on September 6, 2000, and closed on September 21, 2000.\161\
Of the 104 licenses auctioned, 96 licenses were sold to nine bidders.
Five of these bidders were small businesses that won a total of 26
licenses. A second auction of 700 MHz Guard Band licenses commenced on
February 13, 2001, and closed on February 21, 2001. All eight of the
licenses auctioned were sold to three bidders. One of these bidders was
a small business that won a total of two licenses.\162\
---------------------------------------------------------------------------
\157\ See Service Rules for the 746-764 MHz Bands, and Revisions
to Part 27 of the Commission's Rules, Second Report and Order, 15
FCC Rcd 5299 (2000) (``746-764 MHz Band Second Report and Order'').
\158\ See 746-764 MHz Band Second Report and Order, 15 FCC Rcd
at 5343, para. 108.
\159\ See id.
\160\ See id., 15 FCC Rcd 5299, 5343, para. 108 n.246 (for the
746-764 MHz and 776-794 MHz bands, the Commission is exempt from 15
U.S.C. 632, which requires Federal agencies to obtain SBA approval
before adopting small business size standards).
\161\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
\162\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------
87. Specialized Mobile Radio. The Commission awards ``small
entity'' bidding credits in auctions for Specialized Mobile Radio (SMR)
geographic area licenses in the 800 MHz and 900 MHz bands to firms that
had revenues of no more than $15 million in each of the three previous
calendar years.\163\ The Commission awards ``very small entity''
bidding credits to firms that had revenues of no more than $3 million
in each of the three previous calendar years.\164\ The SBA has approved
these small business size standards for the 900 MHz Service.\165\ The
Commission has held auctions for geographic area licenses in the 800
MHz and 900 MHz bands. The 900 MHz SMR auction began on December 5,
1995, and closed on April 15, 1996. Sixty bidders claiming that they
qualified as small businesses under the $15 million size standard won
263 geographic area licenses in the 900 MHz SMR band. The 800 MHz SMR
auction for the upper 200 channels began on October 28, 1997, and was
completed on December 8, 1997. Ten bidders claiming that they qualified
as small businesses under the $15 million size standard won 38
geographic area licenses for the upper 200 channels in the 800 MHz SMR
band.\166\ A second auction for the 800
[[Page 30576]]
MHz band was held on January 10, 2002 and closed on January 17, 2002
and included 23 BEA licenses. One bidder claiming small business status
won five licenses.\167\
---------------------------------------------------------------------------
\163\ 47 CFR 90.814(b)(1).
\164\ 47 CFR 90.814(b)(1).
\165\ See Alvarez Letter 1999.
\166\ See ``Correction to Public Notice DA 96-586 `FCC Announces
Winning Bidders in the Auction of 1020 Licenses to Provide 900 MHz
SMR in Major Trading Areas,' '' Public Notice, 18 FCC Rcd 18367 (WTB
1996).
\167\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------
88. The auction of the 1,053 800 MHz SMR geographic area licenses
for the General Category channels began on August 16, 2000, and was
completed on September 1, 2000. Eleven bidders won 108 geographic area
licenses for the General Category channels in the 800 MHz SMR band
qualified as small businesses under the $15 million size standard.\168\
In an auction completed on December 5, 2000, a total of 2,800 Economic
Area licenses in the lower 80 channels of the 800 MHz SMR service were
awarded.\169\ Of the 22 winning bidders, 19 claimed small business
status and won 129 licenses. Thus, combining all three auctions, 40
winning bidders for geographic licenses in the 800 MHz SMR band claimed
status as small business.
---------------------------------------------------------------------------
\168\ See ``800 MHz Specialized Mobile Radio (SMR) Service
General Category (851-854 MHz) and Upper Band (861-865 MHz) Auction
Closes; Winning Bidders Announced,'' Public Notice, 15 FCC Rcd 17162
(2000).
\169\ See ``800 MHz SMR Service Lower 80 Channels Auction
Closes; Winning Bidders Announced,'' Public Notice, 16 FCC Rcd 1736
(2000).
---------------------------------------------------------------------------
89. In addition, there are numerous incumbent site-by-site SMR
licensees and licensees with extended implementation authorizations in
the 800 and 900 MHz bands. We do not know how many firms provide 800
MHz or 900 MHz geographic area SMR pursuant to extended implementation
authorizations, nor how many of these providers have annual revenues of
no more than $15 million. One firm has over $15 million in revenues. We
assume, for purposes of this analysis, that all of the remaining
existing extended implementation authorizations are held by small
entities, as that small business size standard is approved by the SBA.
90. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service
has both Phase I and Phase II licenses. Phase I licensing was conducted
by lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized
to operate in the 220 MHz band. The Commission has not developed a
definition of small entities specifically applicable to such incumbent
220 MHz Phase I licensees. To estimate the number of such licensees
that are small businesses, we apply the small business size standard
under the SBA rules applicable to ``Cellular and Other Wireless
Telecommunications'' companies. This category provides that a small
business is a wireless company employing no more than 1,500
persons.\170\ The Commission estimates that most such licensees are
small businesses under the SBA's small business standard.
---------------------------------------------------------------------------
\170\ 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------
91. 220 MHz Radio Service--Phase II Licensees. The 220 MHz service
has both Phase I and Phase II licenses. The Phase II 220 MHz service is
a new service, and is subject to spectrum auctions. In the 220 MHz
Third Report and Order, the Commission adopted a small business size
standard for defining ``small'' and ``very small'' businesses for
purposes of determining their eligibility for special provisions such
as bidding credits and installment payments.\171\ This small business
standard indicates that a ``small business'' is an entity that,
together with its affiliates and controlling principals, has average
gross revenues not exceeding $15 million for the preceding three
years.\172\ A ``very small business'' is defined as an entity that,
together with its affiliates and controlling principals, has average
gross revenues that do not exceed $3 million for the preceding three
years.\173\ The SBA has approved these small size standards.\174\
Auctions of Phase II licenses commenced on September 15, 1998, and
closed on October 22, 1998.\175\ In the first auction, 908 licenses
were auctioned in three different-sized geographic areas: three
nationwide licenses, 30 Regional Economic Area Group (``EAG'')
Licenses, and 875 Economic Area (EA) Licenses. Of the 908 licenses
auctioned, 693 were sold.\176\ Thirty-nine small businesses won 373
licenses in the first 220 MHz auction. A second auction included 225
licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies
claiming small business status won 158 licenses.\177\ A third auction
included four licenses: 2 BEA licenses and 2 EAG licenses in the 220
MHz Service. No small or very small business won any of these
licenses.\178\ The Commission conducted a fourth auction in 2007 with
three of the five winning bidders claiming small or very small business
status.\179\
---------------------------------------------------------------------------
\171\ Amendment of Part 90 of the Commission's Rules To Provide
for the Use of the 220-222 MHz Band by the Private Land Mobile Radio
Service, Third Report and Order, 12 FCC Rcd 10943, 11068-70, paras.
291-295 (1997).
\172\ Id. at 11068, para. 291.
\173\ Id.
\174\ See Letter from Aida Alvarez, Administrator, SBA, to
Daniel Phythyon, Chief, WTB, FCC (Jan. 6, 1998) (``Alvarez to
Phythyon Letter 1998'').
\175\ See generally ``220 MHz Service Auction Closes,'' Public
Notice, 14 FCC Rcd 605 (1998).
\176\ See ``FCC Announces It Is Prepared To Grant 654 Phase II
220 MHz Licenses After Final Payment Is Made,'' Public Notice, 14
FCC Rcd 1085 (1999).
\177\ See ``Phase II 220 MHz Service Spectrum Auction Closes,''
Public Notice, 14 FCC Rcd 11218 (1999).
\178\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (2002).
\179\ See ``Auction of Phase II 220 MHz Service Spectrum
Licenses Closes,'' Public Notice, 22 FCC Rcd 11573 (WTB 2007).
---------------------------------------------------------------------------
92. Private Land Mobile Radio (``PLMR''). PLMR systems serve an
essential role in a range of industrial, business, land transportation,
and public safety activities. These radios are used by companies of all
sizes operating in all U.S. business categories, and are often used in
support of the licensee's primary (non-telecommunications) business
operations. For the purpose of determining whether a licensee of a PLMR
system is a small business as defined by the SBA, we use the broad
census category, ``Cellular and Other Wireless Telecommunications.''
This definition provides that a small entity is any such entity
employing no more than 1,500 persons.\180\ The Commission does not
require PLMR licensees to disclose information about number of
employees, so the Commission does not have information that could be
used to determine how many PLMR licensees constitute small entities
under this definition. We note that PLMR licensees generally use the
licensed facilities in support of other business activities, and
therefore, it would also be helpful to assess PLMR licensees under the
standards applied to the particular industry subsector to which the
licensee belongs.\181\
---------------------------------------------------------------------------
\180\ See 13 CFR 121.201, NAICS code 517212.
\181\ See generally 13 CFR 121.201.
---------------------------------------------------------------------------
93. The Commission's 1994 Annual Report on PLMRs \182\ indicates
that at the end of fiscal year 1994, there were 1,087,267 licensees
operating 12,481,989 transmitters in the PLMR bands below 512 MHz. We
note that any entity engaged in a commercial activity is eligible to
hold a PLMR license, and that the revised rules in this context could
therefore potentially impact small entities covering a great variety of
industries.
---------------------------------------------------------------------------
\182\ Federal Communications Commission, 60th Annual Report,
Fiscal Year 1994, at para. 116.
---------------------------------------------------------------------------
94. Fixed Microwave Services. Fixed microwave services include
common carrier,\183\ private operational-fixed,\184\
[[Page 30577]]
and broadcast auxiliary radio services.\185\ At present, there are
approximately 22,015 common carrier fixed licensees and 61,670 private
operational-fixed licensees and broadcast auxiliary radio licensees in
the microwave services. The Commission has not created a size standard
for a small business specifically with respect to fixed microwave
services. For purposes of this analysis, the Commission uses the SBA
small business size standard for the category ``Cellular and Other
Telecommunications,'' which is 1,500 or fewer employees.\186\ The
Commission does not have data specifying the number of these licensees
that have no more than 1,500 employees, and thus are unable at this
time to estimate with greater precision the number of fixed microwave
service licensees that would qualify as small business concerns under
the SBA's small business size standard. Consequently, the Commission
estimates that there are 22,015 or fewer common carrier fixed licensees
and 61,670 or fewer private operational-fixed licensees and broadcast
auxiliary radio licensees in the microwave services that may be small
and may be affected by the rules and policies proposed herein. We note,
however, that the common carrier microwave fixed licensee category
includes some large entities.
---------------------------------------------------------------------------
\183\ See 47 CFR 101 et seq. (formerly, Part 21 of the
Commission's Rules) for common carrier fixed microwave services
(except Multipoint Distribution Service).
\184\ Persons eligible under parts 80 and 90 of the Commission's
Rules can use Private Operational-Fixed Microwave services. See 47
CFR Parts 80 and 90. Stations in this service are called
operational-fixed to distinguish them from common carrier and public
fixed stations. Only the licensee may use the operational-fixed
station, and only for communications related to the licensee's
commercial, industrial, or safety operations.
\185\ Auxiliary Microwave Service is governed by Part 74 of
Title 47 of the Commission's Rules. See 47 CFR Part 74. This service
is available to licensees of broadcast stations and to broadcast and
cable network entities. Broadcast auxiliary microwave stations are
used for relaying broadcast television signals from the studio to
the transmitter, or between two points such as a main studio and an
auxiliary studio. The service also includes mobile television
pickups, which relay signals from a remote location back to the
studio.
\186\ 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------
95. 39 GHz Service. The Commission created a special small business
size standard for 39 GHz licenses--an entity that has average gross
revenues of $40 million or less in the three previous calendar
years.\187\ An additional size standard for ``very small business'' is:
An entity that, together with affiliates, has average gross revenues of
not more than $15 million for the preceding three calendar years.\188\
The SBA has approved these small business size standards.\189\ The
auction of the 2,173 39 GHz licenses began on April 12, 2000 and closed
on May 8, 2000. The 18 bidders who claimed small business status won
849 licenses.
---------------------------------------------------------------------------
\187\ See Amendment of the Commission's Rules Regarding the
37.0-38.6 GHz and 38.6-40.0 GHz Bands, ET Docket No. 95-183, Report
and Order, 12 FCC Rcd 18600 (1997).
\188\ Id.
\189\ See Letter from Aida Alvarez, Administrator, SBA, to
Kathleen O'Brien Ham, Chief, Auctions and Industry Analysis
Division, WTB, FCC (Feb. 4, 1998); See Letter from Hector Barreto,
Administrator, SBA, to Margaret Wiener, Chief, Auctions and Industry
Analysis Division, WTB, FCC (Jan. 18, 2002).
---------------------------------------------------------------------------
96. Local Multipoint Distribution Service. Local Multipoint
Distribution Service (``LMDS'') is a fixed broadband point-to-
multipoint microwave service that provides for two-way video
telecommunications.\190\ The auction of the 986 LMDS licenses began on
February 18, 1998 and closed on March 25, 1998. The Commission
established a small business size standard for LMDS licenses as an
entity that has average gross revenues of less than $40 million in the
three previous calendar years.\191\ An additional small business size
standard for ``very small business'' was added as an entity that,
together with its affiliates, has average gross revenues of not more
than $15 million for the preceding three calendar years.\192\ The SBA
has approved these small business size standards in the context of LMDS
auctions.\193\ There were 93 winning bidders that qualified as small
entities in the LMDS auctions. A total of 93 small and very small
business bidders won approximately 277 A Block licenses and 387 B Block
licenses. On March 27, 1999, the Commission re-auctioned 161 licenses;
there were 32 small and very small businesses winning that won 119
licenses.
---------------------------------------------------------------------------
\190\ See Rulemaking to Amend Parts 1, 2, 21, 25, of the
Commission's Rules to Redesignate the 27.5-29.5 GHz Frequency Band,
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and
Policies for Local Multipoint Distribution Service and for Fixed
Satellite Services, Second Report and Order, Order on
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC
Rcd 12545, 12689-90, para. 348 (1997) (``LMDS Second Report and
Order'').
\191\ See LMDS Second Report and Order, 12 FCC Rcd at 12689-90,
para. 348.
\192\ See id.
\193\ See Alvarez to Phythyon Letter 1998.
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97. 218-219 MHz Service. The first auction of 218-219 MHz
(previously referred to as the Interactive and Video Data Service or
IVDS) spectrum resulted in 178 entities winning licenses for 594
Metropolitan Statistical Areas (``MSAs'').\194\ Of the 594 licenses,
567 were won by 167 entities qualifying as a small business. For that
auction, the Commission defined a small business as an entity that,
together with its affiliates, has no more than a $6 million net worth
and, after federal income taxes (excluding any carry over losses), has
no more than $2 million in annual profits each year for the previous
two years.\195\ In the 218-219 MHz Report and Order and Memorandum
Opinion and Order, we defined a small business as an entity that,
together with its affiliates and persons or entities that hold
interests in such an entity and their affiliates, has average annual
gross revenues not exceeding $15 million for the preceding three
years.\196\ A very small business is defined as an entity that,
together with its affiliates and persons or entities that hold
interests in such an entity and its affiliates, has average annual
gross revenues not exceeding $3 million for the preceding three
years.\197\ The SBA has approved of these definitions.\198\ A
subsequent auction is not yet scheduled. Given the success of small
businesses in the previous auction, and the prevalence of small
businesses in the subscription television services and message
communications industries, we assume for purposes of this analysis that
in future auctions, many, and perhaps most, of the licenses may be
awarded to small businesses.
---------------------------------------------------------------------------
\194\ See ``Interactive Video and Data Service (IVDS)
Applications Accepted for Filing,'' Public Notice, 9 FCC Rcd 6227
(1994).
\195\ Implementation of Section 309(j) of the Communications
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330
(1994).
\196\ Amendment of Part 95 of the Commission's Rules to Provide
Regulatory Flexibility in the 218-219 MHz Service, Report and Order
and Memorandum Opinion and Order, 15 FCC Rcd 1497 (1999).
\197\ Id.
\198\ See Alvarez to Phythyon Letter 1998.
---------------------------------------------------------------------------
98. Location and Monitoring Service (``LMS''). Multilateration LMS
systems use non-voice radio techniques to determine the location and
status of mobile radio units. For purposes of auctioning LMS licenses,
the Commission has defined ``small business'' as an entity that,
together with controlling interests and affiliates, has average annual
gross revenues for the preceding three years not exceeding $15
million.\199\ A ``very small business'' is defined as an entity that,
together with controlling interests and affiliates, has average annual
gross revenues for the preceding three years not exceeding $3
million.\200\ These definitions have been approved by the SBA.\201\ An
auction for LMS licenses commenced on February 23, 1999, and closed on
March 5, 1999. Of the 528 licenses auctioned,
[[Page 30578]]
289 licenses were sold to four small businesses.
---------------------------------------------------------------------------
\199\ Amendment of Part 90 of the Commission's Rules to Adopt
Regulations for Automatic Vehicle Monitoring Systems, Second Report
and Order, 13 FCC Rcd 15182, 15192, para. 20 (1998) (``Automatic
Vehicle Monitoring Systems Second Report and Order''); see also 47
CFR 90.1103.
\200\ Automatic Vehicle Monitoring Systems Second Report and
Order, 13 FCC Rcd at 15192, para. 20; see also 47 CFR 90.1103.
\201\ See Alvarez Letter 1998.
---------------------------------------------------------------------------
99. Rural Radiotelephone Service. The Commission has not adopted a
size standard for small businesses specific to the Rural Radiotelephone
Service.\202\ A significant subset of the Rural Radiotelephone Service
is the Basic Exchange Telephone Radio System (``BETRS'').\203\ In the
present context, we will use the SBA's small business size standard
applicable to ``Cellular and Other Wireless Telecommunications,'' i.e.,
an entity employing no more than 1,500 persons.\204\ There are
approximately 1,000 licensees in the Rural Radiotelephone Service, and
the Commission estimates that there are 1,000 or fewer small entity
licensees in the Rural Radiotelephone Service that may be affected by
the rules and policies proposed herein.
---------------------------------------------------------------------------
\202\ The service is defined in section 22.99 of the
Commission's Rules, 47 CFR 22.99.
\203\ BETRS is defined in section 22.757 and 22.759 of the
Commission's Rules, 47 CFR 22.757 and 22.759.
\204\ 13 CFR 121.201, NAICS code 517212.
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100. Air-Ground Radiotelephone Service.\205\ The Commission has
previously used the SBA's small business definition applicable to
``Cellular and Other Wireless Telecommunications,'' i.e., an entity
employing no more than 1,500 persons.\206\ There are approximately 100
licensees in the Air-Ground Radiotelephone Service, and under that
definition, we estimate that almost all of them qualify as small
entities under the SBA definition. For purposes of assigning Air-Ground
Radiotelephone Service licenses through competitive bidding, the
Commission has defined ``small business'' as an entity that, together
with controlling interests and affiliates, has average annual gross
revenues for the preceding three years not exceeding $40 million.\207\
A ``very small business'' is defined as an entity that, together with
controlling interests and affiliates, has average annual gross revenues
for the preceding three years not exceeding $15 million.\208\ These
definitions were approved by the SBA.\209\ In May 2006, the Commission
completed an auction of nationwide commercial Air-Ground Radiotelephone
Service licenses in the 800 MHz band (Auction No. 65). On June 2, 2006,
the auction closed with two winning bidders winning two Air-Ground
Radiotelephone Services licenses. Neither of the winning bidders
claimed small business status.
---------------------------------------------------------------------------
\205\ The service is defined in section 22.99 of the
Commission's Rules, 47 CFR 22.99.
\206\ 13 CFR 121.201, NAICS codes 517212.
\207\ Amendment of Part 22 of the Commission's Rules to Benefit
the Consumers of Air-Ground Telecommunications Services, Biennial
Regulatory Review--Amendment of Parts 1, 22, and 90 of the
Commission's Rules, Amendment of Parts 1 and 22 of the Commission's
Rules to Adopt Competitive Bidding Rules for Commercial and General
Aviation Air-Ground Radiotelephone Service, WT Docket Nos. 03-103
and 05-42, Order on Reconsideration and Report and Order, 20 FCC Rcd
19663, para. 28-42 (2005).
\208\ Id.
\209\ See Letter from Hector V. Barreto, Administrator, SBA, to
Gary D. Michaels, Deputy Chief, Auctions and Spectrum Access
Division, WTB, FCC (Sept. 19, 2005).
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101. Aviation and Marine Radio Services. There are approximately
26,162 aviation, 34,555 marine (ship), and 3,296 marine (coast)
licensees.\210\ The Commission has not developed a small business size
standard specifically applicable to all licensees. For purposes of this
analysis, we will use the SBA small business size standard for the
category ``Cellular and Other Telecommunications,'' which is 1,500 or
fewer employees.\211\ We are unable to determine how many of those
licensed fall under this standard. For purposes of our evaluations in
this analysis, we estimate that there are up to approximately 62,969
licensees that are small businesses under the SBA standard.\212\ In
December 1998, the Commission held an auction of 42 VHF Public Coast
licenses in the 157.1875-157.4500 MHz (ship transmit) and 161.775-
162.0125 MHz (coast transmit) bands. For this auction, the Commission
defined a ``small'' business as an entity that, together with
controlling interests and affiliates, has average gross revenues for
the preceding three years not to exceed $15 million. In addition, a
``very small'' business is one that, together with controlling
interests and affiliates, has average gross revenues for the preceding
three years not to exceed $3 million.\213\ Further, the Commission made
available Automated Maritime Telecommunications System (``AMTS'')
licenses in Auctions 57 and 61.\214\ Winning bidders could claim status
as a very small business or a very small business. A very small
business for this service is defined as an entity with attributed
average annual gross revenues that do not exceed $3 million for the
preceding three years, and a small business is defined as an entity
with attributed average annual gross revenues of more than $3 million
but less than $15 million for the preceding three years.\215\ Three of
the winning bidders in Auction 57 qualified as small or very small
businesses, while three winning entities in Auction 61 qualified as
very small businesses.
---------------------------------------------------------------------------
\210\ Vessels that are not required by law to carry a radio and
do not make international voyages or communications are not required
to obtain an individual license. See Amendment of Parts 80 and 87 of
the Commission's Rules to Permit Operation of Certain Domestic Ship
and Aircraft Radio Stations Without Individual Licenses, Report and
Order, WT Docket No. 96-82, 11 FCC Rcd 14849 (1996).
\211\ 13 CFR 121.201, NAICS code 517212.
\212\ A licensee may have a license in more than one category.
\213\ Amendment of the Commission's Rules Concerning Maritime
Communications, PR Docket No. 92-257, Third Report and Order and
Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998).
\214\ See ``Automated Maritime Telecommunications System
Spectrum Auction Scheduled for September 15, 2004, Notice and Filing
Requirements, Minimum Opening Bids, Upfront Payments and Other
Auction Procedures,'' Public Notice, 19 FCC Rcd 9518 (WTB 2004);
``Auction of Automated Maritime Telecommunications System Licenses
Scheduled for August 3, 2005, Notice and Filing Requirements,
Minimum Opening Bids, Upfront Payments and Other Auction Procedures
for Auction No. 61,'' Public Notice, 20 FCC Rcd 7811 (WTB 2005).
\215\ 47 CFR 80.1252.
---------------------------------------------------------------------------
102. Offshore Radiotelephone Service. This service operates on
several ultra high frequencies (``UHF'') television broadcast channels
that are not used for television broadcasting in the coastal areas of
states bordering the Gulf of Mexico.\216\ There is presently 1 licensee
in this service. We do not have information whether that licensee would
qualify as small under the SBA's small business size standard for
``Cellular and Other Wireless Telecommunications'' services.\217\ Under
that SBA small business size standard, a business is small if it has
1,500 or fewer employees.\218\
---------------------------------------------------------------------------
\216\ This service is governed by Subpart I of Part 22 of the
Commission's Rules. See 47 CFR 22.1001-22.1037.
\217\ 13 CFR 121.201, NAICS code 517212.
\218\ Id.
---------------------------------------------------------------------------
103. Multiple Address Systems (``MAS''). Entities using MAS
spectrum, in general, fall into two categories: (1) Those using the
spectrum for profit-based uses, and (2) those using the spectrum for
private internal uses. With respect to the first category, the
Commission defines ``small entity'' for MAS licenses as an entity that
has average gross revenues of less than $15 million in the three
previous calendar years.\219\ ``Very small business'' is defined as an
entity that, together with its affiliates, has average gross revenues
of not more than $3 million for the preceding three calendar
years.\220\ The SBA has approved of these definitions.\221\ The
majority of these entities will most likely be licensed in bands where
the Commission has
[[Page 30579]]
implemented a geographic area licensing approach that would require the
use of competitive bidding procedures to resolve mutually exclusive
applications. The Commission's licensing database indicates that, as of
January 20, 1999, there were a total of 8,670 MAS station
authorizations. Of these, 260 authorizations were associated with
common carrier service. In addition, an auction for 5,104 MAS licenses
in 176 EAs began November 14, 2001, and closed on November 27,
2001.\222\ Seven winning bidders claimed status as small or very small
businesses and won 611 licenses. On May 18, 2005, the Commission
completed an auction (Auction No. 59) of 4,226 MAS licenses in the
Fixed Microwave Services from the 928/959 and 932/941 MHz bands.
Twenty-six winning bidders won a total of 2,323 licenses. Of the 26
winning bidders in this auction, five claimed small business status and
won 1,891 licenses.
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\219\ See Amendment of the Commission's Rules Regarding Multiple
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, para.
123 (2000).
\220\ Id.
\221\ See Alvarez Letter 1999.
\222\ See ``Multiple Address Systems Spectrum Auction Closes,''
Public Notice, 16 FCC Rcd 21011 (2001).
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104. With respect to the second category, which consists of
entities that use, or seek to use, MAS spectrum to accommodate internal
communications needs, we note that MAS serves an essential role in a
range of industrial, safety, business, and land transportation
activities. MAS radios are used by companies of all sizes, operating in
virtually all U.S. business categories, and by all types of public
safety entities. For the majority of private internal users, the small
business size standard developed by the SBA would be more appropriate.
The applicable size standard in this instance appears to be that of
``Cellular and Other Wireless Telecommunications''. This definition
provides that a small entity is any such entity employing no more than
1,500 persons.\223\ The Commission's licensing database indicates that,
as of January 20, 1999, of the 8,670 total MAS station authorizations,
8,410 authorizations were for private radio service, and of these,
1,433 were for private land mobile radio service.
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\223\ See 13 CFR 121.201, NAICS code 517212.
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105. 1.4 GHz Band Licensees. The Commission conducted an auction of
64 1.4 GHz band licenses, beginning on February 7, 2007,\224\ and
closing on March 8, 2007.\225\ In that auction, the Commission defined
``small business'' as an entity that, together with its affiliates and
controlling interests, had average gross revenues that exceed $15
million but do not exceed $40 million for the preceding three years,
and a ``very small business'' as an entity that, together with its
affiliates and controlling interests, has had average annual gross
revenues not exceeding $15 million for the preceding three years.\226\
Neither of the two winning bidders sought designated entity
status.\227\
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\224\ See ``Auction of 1.4 GHz Bands Licenses Scheduled for
February 7, 2007,'' Public Notice, 21 FCC Rcd 12393 (WTB 2006).
\225\ See ``Auction of 1.4 GHz Band Licenses Closes; Winning
Bidders Announced for Auction No. 69,'' Public Notice, 22 FCC Rcd
4714 (2007) (``Auction No. 69 Closing PN'').
\226\ Id., Attachment C.
\227\ See Auction No. 69 Closing PN.
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106. Incumbent 24 GHz Licensees. This analysis may affect incumbent
licensees who were relocated to the 24 GHz band from the 18 GHz band,
and applicants who wish to provide services in the 24 GHz band. The
applicable SBA small business size standard is that of ``Cellular and
Other Wireless Telecommunications'' companies. This category provides
that such a company is small if it employs no more than 1,500
persons.\228\ For the census category of Paging, Census Bureau data for
2002 show that there were 807 firms in this category that operated for
the entire year.\229\ Of this total, 804 firms had employment of 999 or
fewer employees, and three firms had employment of 1,000 employees or
more.\230\ Thus, under this category and associated small business size
standard, the majority of firms can be considered small. For the census
category of Cellular and Other Wireless Telecommunications, Census
Bureau data for 2002 show that there were 1,397 firms in this category
that operated for the entire year.\231\ Of this total, 1,378 firms had
employment of 999 or fewer employees, and 19 firms had employment of
1,000 employees or more.\232\ Thus, under this second category and size
standard, the majority of firms can, again, be considered small. These
broader census data notwithstanding, we believe that there are only two
licensees in the 24 GHz band that were relocated from the 18 GHz band,
Teligent \233\ and TRW, Inc. It is our understanding that Teligent and
its related companies have fewer than 1,500 employees, though this may
change in the future. TRW is not a small entity. There are
approximately 122 licensees in the Rural Radiotelephone Service, and
the Commission estimates that there are 122 or fewer small entity
licensees in the Rural Radiotelephone Service that may be affected by
the rules and policies proposed herein.
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\228\ 13 CFR 121.201, NAICS code 517212.
\229\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517211.
\230\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is for firms with ``1000
employees or more.''
\231\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517212.
\232\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is for firms with ``1000
employees or more.''
\233\ Teligent acquired the DEMS licenses of FirstMark, the only
licensee other than TRW in the 24 GHz band whose license has been
modified to require relocation to the 24 GHz band.
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107. Future 24 GHz Licensees. With respect to new applicants in the
24 GHz band, we have defined ``small business'' as an entity that,
together with controlling interests and affiliates, has average annual
gross revenues for the three preceding years not exceeding $15
million.\234\ ``Very small business'' in the 24 GHz band is defined as
an entity that, together with controlling interests and affiliates, has
average gross revenues not exceeding $3 million for the preceding three
years.\235\ The SBA has approved these definitions.\236\ The Commission
will not know how many licensees will be small or very small businesses
until the auction, if required, is held.
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\234\ Amendments to Parts 1, 2, 87 and 101 of the Commission's
Rules To License Fixed Services at 24 GHz, Report and Order, 15 FCC
Rcd 16934, 16967, para. 77 (2000) (``24 GHz Report and Order''); see
also 47 CFR 101.538(a)(2).
\235\ 24 GHz Report and Order, 15 FCC Rcd at 16967, para. 77;
see also 47 CFR 101.538(a)(1).
\236\ See Letter from Gary M. Jackson, Assistant Administrator,
SBA, to Margaret W. Wiener, Deputy Chief, Auctions and Industry
Analysis Division, WTB, FCC (July 28, 2000).
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108. Broadband Radio Service. Broadband Radio Service systems,
previously referred to as Multipoint Distribution Service (``MDS'') and
Multichannel Multipoint Distribution Service (``MMDS'') systems, and
``wireless cable,'' transmit video programming to subscribers and
provide two-way high speed data operations using the microwave
frequencies of the Broadband Radio Service (``BRS'') and Educational
Broadband Service (``EBS'') (previously referred to as the
Instructional Television Fixed Service (``ITFS'')).\237\ In connection
with the 1996 BRS auction, the Commission established a small business
size
[[Page 30580]]
standard as an entity that had annual average gross revenues of no more
than $40 million in the previous three calendar years.\238\ The BRS
auctions resulted in 67 successful bidders obtaining licensing
opportunities for 493 Basic Trading Areas (``BTAs''). Of the 67 auction
winners, 61 met the definition of a small business. BRS also includes
licensees of stations authorized prior to the auction. At this time, we
estimate that of the 61 small business BRS auction winners, 48 remain
small business licensees. In addition to the 48 small businesses that
hold BTA authorizations, there are approximately 392 incumbent BRS
licensees that are considered small entities.\239\ After adding the
number of small business auction licensees to the number of incumbent
licensees not already counted, we find that there are currently
approximately 440 BRS licensees that are defined as small businesses
under either the SBA or the Commission's rules.
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\237\ Amendment of Parts 21 and 74 of the Commission's Rules
with Regard to Filing Procedures in the Multipoint Distribution
Service and in the Instructional Television Fixed Service and
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, MM Docket No. 94-131 and PP Docket No. 93-253,
Report and Order, 10 FCC Rcd 9589, 9593, para. 7 (1995) (``MDS
Auction R&O'').
\238\ 47 CFR 21.961(b)(1).
\239\ 47 U.S.C. 309(j). Hundreds of stations were licensed to
incumbent MDS licensees prior to implementation of Section 309(j) of
the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business
size standard.
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109. In addition, the SBA has developed a small business size
standard for Cable and Other Program Distribution, which includes all
such companies generating $13.5 million or less in annual
receipts.\240\ According to Census Bureau data for 2002, there were a
total of 1,191 firms in this category that operated for the entire
year.\241\ Of this total, 1,087 firms had annual receipts of under $10
million, and 43 firms had receipts of $10 million or more but less than
$25 million.\242\ Consequently, we estimate that the majority of
providers in this service category are small businesses that may be
affected by the rules and policies adopted herein. This SBA small
business size standard is applicable to EBS. There are presently 2,032
EBS licensees. All but 100 of these licenses are held by educational
institutions. Educational institutions are included in this analysis as
small entities.\243\ Thus, we estimate that at least 1,932 licensees
are small businesses.
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\240\ 13 CFR 121.201, NAICS code 517510.
\241\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510.
\242\ Id. An additional 61 firms had annual receipts of $25
million or more.
\243\ The term ``small entity'' within SBREFA applies to small
organizations (nonprofits) and to small governmental jurisdictions
(cities, counties, towns, townships, villages, school districts, and
special districts with populations of less than 50,000). 5 U.S.C.
601(4)-(6). We do not collect annual revenue data on EBS licensees.
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110. Television Broadcasting. The Census Bureau defines this
category as follows: ``This industry comprises establishments primarily
engaged in broadcasting images together with sound. These
establishments operate television broadcasting studios and facilities
for the programming and transmission of programs to the public.'' \244\
The SBA has created a small business size standard for Television
Broadcasting entities, which is: such firms having $13 million or less
in annual receipts.\245\ According to Commission staff review of the
BIA Financial Network, Inc., Media Access Pro Television Database as of
December 7, 2007, about 825 (66 percent) of the 1,250 commercial
television stations in the United States have revenues of $13 million
or less. However, in assessing whether a business entity qualifies as
small under the above definition, business controlaffiliations \246\
must be included. Our estimate, therefore, likely overstates the number
of small entities that might be affected by our action, because the
revenue figure on which it is based does not include or aggregate
revenues from affiliated companies.
---------------------------------------------------------------------------
\244\ U.S. Census Bureau, 2002 NAICS Definitions, ``515120
Television Broadcasting'' (partial definition); http://www.census.gov/epcd/naics02/def/NDEF515.HTM.
\245\ 13 CFR 121.201, NAICS code 515120.
\246\ ``Concerns are affiliates of each other when one concern
controls or has the power to control the other or a third party or
parties controls or has to power to control both.'' 13 CFR
21.103(a)(1).
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111. In addition, an element of the definition of ``small
business'' is that the entity not be dominant in its field of
operation. We are unable at this time to define or quantify the
criteria that would establish whether a specific television station is
dominant in its field of operation. Accordingly, the estimate of small
businesses to which rules may apply do not exclude any television
station from the definition of a small business on this basis and are
therefore over-inclusive to that extent. Also as noted, an additional
element of the definition of ``small business'' is that the entity must
be independently owned and operated. We note that it is difficult at
times to assess these criteria in the context of media entities and our
estimates of small businesses to which they apply may be over-inclusive
to this extent.
112. There are also 2,117 low power television stations
(``LPTV'').\247\ Given the nature of this service, we will presume that
all LPTV licensees qualify as small entities under the above SBA small
business size standard.
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\247\ FCC News Release, ``Broadcast Station Totals as of
September 30, 2007.''
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113. Radio Broadcasting. The SBA defines a radio broadcast entity
that has $6 million or less in annual receipts as a small
business.\248\ Business concerns included in this industry are those
``primarily engaged in broadcasting aural programs by radio to the
public.\249\ According to Commission staff review of the BIA
Publications, Inc., Master Access Radio Analyzer Database, as of May
16, 2003, about 10,427 of the 10,945 commercial radio stations in the
United States have revenue of $6 million or less. We note, however,
that many radio stations are affiliated with much larger corporations
with much higher revenue, and that in assessing whether a business
concern qualifies as small under the above definition, such business
(control) affiliations \250\ are included.\251\ Our estimate, therefore
likely overstates the number of small businesses that might be affected
by our action.
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\248\ See OMB, North American Industry Classification System:
United States, 1997, at 509 (1997) (Radio Stations) (NAICS code
515112).
\249\ Id.
\250\ ``Concerns are affiliates of each other when one concern
controls or has the power to control the other, or a third party or
parties controls or has the power to control both.'' 13 CFR
121.103(a)(1).
\251\ ``SBA counts the receipts or employees of the concern
whose size is at issue and those of all its domestic and foreign
affiliates, regardless of whether the affiliates are organized for
profit, in determining the concern's size.'' 13 CFR 121(a)(4).
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114. Auxiliary, Special Broadcast and Other Program Distribution
Services. This service involves a variety of transmitters, generally
used to relay broadcast programming to the public (through translator
and booster stations) or within the program distribution chain (from a
remote news gathering unit back to the station). The Commission has not
developed a definition of small entities applicable to broadcast
auxiliary licensees. The applicable definitions of small entities are
those, noted previously, under the SBA rules applicable to radio
broadcasting stations and television broadcasting stations.\252\
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\252\ 13 CFR 121.201, NAICS codes 513111 and 513112.
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115. The Commission estimates that there are approximately 5,618 FM
translators and boosters.\253\ The Commission does not collect
financial information on any broadcast facility, and the Department of
Commerce does not collect financial information on these auxiliary
broadcast facilities. We believe that most, if not all, of these
auxiliary facilities could be classified as small businesses by
themselves. We also recognize that most commercial
[[Page 30581]]
translators and boosters are owned by a parent station which, in some
cases, would be covered by the revenue definition of small business
entity discussed above. These stations would likely have annual
revenues that exceed the SBA maximum to be designated as a small
business ($6.5 million for a radio station or $13.0 million for a TV
station). Furthermore, they do not meet the Small Business Act's
definition of a ``small business concern'' because they are not
independently owned and operated.\254\
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\253\ See supra note 242.
\254\ 15 U.S.C. 632.
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116. Cable and Other Program Distribution. The Census Bureau
defines this category as follows: ``This industry comprises
establishments primarily engaged as third-party distribution systems
for broadcast programming. The establishments of this industry deliver
visual, aural, or textual programming received from cable networks,
local television stations, or radio networks to consumers via cable or
direct-to-home satellite systems on a subscription or fee basis. These
establishments do not generally originate programming material.'' \255\
The SBA has developed a small business size standard for Cable and
Other Program Distribution, which is: All such firms having $13.5
million or less in annual receipts.\256\ According to Census Bureau
data for 2002, there were a total of 1,191 firms in this category that
operated for the entire year.\257\ Of this total, 1,087 firms had
annual receipts of under $10 million, and 43 firms had receipts of $10
million or more but less than $25 million.\258\ Thus, under this size
standard, the majority of firms can be considered small.
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\255\ U.S. Census Bureau, 2002 NAICS Definitions, ``517510 Cable
and Other Program Distribution''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
\256\ 256 13 CFR 121.201, NAICS code 517510.
\257\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510.
\258\ Id. An additional 61 firms had annual receipts of $25
million or more.
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117. Cable Companies and Systems. The Commission has also developed
its own small business size standards, for the purpose of cable rate
regulation. Under the Commission's rules, a ``small cable company'' is
one serving 400,000 or fewer subscribers, nationwide.\259\ Industry
data indicate that, of 1,076 cable operators nationwide, all but eleven
are small under this size standard.\260\ In addition, under the
Commission's rules, a ``small system'' is a cable system serving 15,000
or fewer subscribers.\261\ Industry data indicate that, of 7,208
systems nationwide, 6,139 systems have under 10,000 subscribers, and an
additional 379 systems have 10,000-19,999 subscribers.\262\ Thus, under
this second size standard, most cable systems are small.
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\259\ 47 CFR 76.901(e). The Commission determined that this size
standard equates approximately to a size standard of $100 million or
less in annual revenues. Implementation of Sections of the 1992
Cable Act: Rate Regulation, Sixth Report and Order and Eleventh
Order on Reconsideration, 10 FCC Rcd 7393, 7408 (1995).
\260\ These data are derived from: R.R. Bowker, Broadcasting &
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8
& C-2; Warren Communications News, Television & Cable Factbook 2006,
``Ownership of Cable Systems in the United States,'' pages D-1805 to
D-1857.
\261\ 47 CFR 76.901(c).
\262\ Warren Communications News, Television & Cable Factbook
2006, ``U.S. Cable Systems by Subscriber Size,'' page F-2. The data
do not include 718 systems for which classifying data were not
available.
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118. Cable System Operators. The Communications Act of 1934, as
amended, also contains a size standard for small cable system
operators, which is ``a cable operator that, directly or through an
affiliate, serves in the aggregate fewer than 1 percent of all
subscribers in the United States and is not affiliated with any entity
or entities whose gross annual revenues in the aggregate exceed
$250,000,000.'' \263\ The Commission has determined that an operator
serving fewer than 677,000 subscribers shall be deemed a small
operator, if its annual revenues, when combined with the total annual
revenues of all its affiliates, do not exceed $250 million in the
aggregate.\264\ Industry data indicate that, of 1,076 cable operators
nationwide, all but ten are small under this size standard.\265\ We
note that the Commission neither requests nor collects information on
whether cable system operators are affiliated with entities whose gross
annual revenues exceed $250 million,\266\ and therefore we are unable
to estimate more accurately the number of cable system operators that
would qualify as small under this size standard.
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\263\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
\264\ 47 CFR 76.901(f); see Public Notice, FCC Announces New
Subscriber Count for the Definition of Small Cable Operator, 16 FCC
Rcd 2225 (Cable Services Bureau, 2001).
\265\ These data are derived from: R.R. Bowker, Broadcasting &
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8
& C-2 (data current as of June 30, 2005); Warren Communications
News, Television & Cable Factbook 2006, ``Ownership of Cable Systems
in the United States,'' pages D-1805 to D-1857.
\266\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's
finding that the operator does not qualify as a small cable operator
pursuant to section 76.901(f) of the Commission's rules. See 47 CFR
76.909(b).
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119. Open Video Services. Open Video Service (``OVS'') systems
provide subscription services.\267\ The SBA has created a small
business size standard for Cable and Other Program Distribution.\268\
This standard provides that a small entity is one with $13.5 million or
less in annual receipts. The Commission has certified approximately 25
OVS operators to serve 75 areas, and some of these are currently
providing service.\269\ Affiliates of Residential Communications
Network, Inc. (``RCN'') received approval to operate OVS systems in New
York City, Boston, Washington, DC, and other areas. RCN has sufficient
revenues to assure that they do not qualify as a small business entity.
Little financial information is available for the other entities that
are authorized to provide OVS and are not yet operational. Given that
some entities authorized to provide OVS service have not yet begun to
generate revenues, the Commission concludes that up to 24 OVS operators
(those remaining) might qualify as small businesses that may be
affected by the rules and policies proposed herein.
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\267\ See 47 U.S.C. 573.
\268\ 13 CFR 121.201, NAICS code 517510.
\269\ See http://www.fcc.gov/csb/ovs/csovscer.html.
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120. Cable Television Relay Service. This service includes
transmitters generally used to relay cable programming within cable
television system distribution systems. The SBA has developed a small
business size standard for Cable and Other Program Distribution, which
is: All such firms having $13.5 million or less in annual
receipts.\270\ According to Census Bureau data for 2002, there were a
total of 1,191 firms in this category that operated for the entire
year.\271\ Of this total, 1,087 firms had annual receipts of under $10
million, and 43 firms had receipts of $10 million or more but less than
$25 million.\272\ Thus, under this size standard, the majority of firms
can be considered small.
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\270\ 13 CFR 121.201, NAICS code 517510.
\271\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510.
\272\ Id. An additional 61 firms had annual receipts of $25
million or more.
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121. Multichannel Video Distribution and Data Service. MVDDS is a
terrestrial fixed microwave service operating in the 12.2-12.7 GHz
band. The Commission adopted criteria for defining three groups of
small businesses for purposes of determining their eligibility for
special provisions such as bidding credits. It defined a very
[[Page 30582]]
small business as an entity with average annual gross revenues not
exceeding $3 million for the preceding three years; a small business as
an entity with average annual gross revenues not exceeding $15 million
for the preceding three years; and an entrepreneur as an entity with
average annual gross revenues not exceeding $40 million for the
preceding three years.\273\ These definitions were approved by the
SBA.\274\ On January 27, 2004, the Commission completed an auction of
214 MVDDS licenses (Auction No. 53). In this auction, ten winning
bidders won a total of 192 MVDDS licenses.\275\ Eight of the ten
winning bidders claimed small business status and won 144 of the
licenses. The Commission also held an auction of MVDDS licenses on
December 7, 2005 (Auction 63). Of the three winning bidders who won 22
licenses, two winning bidders, winning 21 of the licenses, claimed
small business status.\276\
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\273\ Amendment of Parts 2 and 25 of the Commission's Rules to
Permit Operation of NGSO FSS Systems Co-Frequency with GSO and
Terrestrial Systems in the Ku-Band Frequency Range; Amendment of the
Commission's Rules to Authorize Subsidiary Terrestrial Use of the
12.2-12.7 GHz Band by Direct Broadcast Satellite Licenses and their
Affiliates; and Applications of Broadwave USA, PDC Broadband
Corporation, and Satellite Receivers, Ltd. to provide A Fixed
Service in the 12.2-12.7 GHz Band, ET Docket No. 98-206, Memorandum
Opinion and Order and Second Report and Order, 17 FCC Rcd 9614,
9711, para. 252 (2002).
\274\ See Letter from Hector V. Barreto, Administrator, U.S.
Small Business Administration, to Margaret W. Wiener, Chief,
Auctions and Industry Analysis Division, WTB, FCC (Feb.13, 2002).
\275\ See ``Multichannel Video Distribution and Data Service
Auction Closes,'' Public Notice, 19 FCC Rcd 1834 (2004).
\276\ See ``Auction of Multichannel Video Distribution and Data
Service Licenses Closes; Winning Bidders Announced for Auction No.
63,'' Public Notice, 20 FCC Rcd 19807 (2005).
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122. Amateur Radio Service. These licensees are held by individuals
in a noncommercial capacity; these licensees are not small entities.
123. Aviation and Marine Services. Small businesses in the aviation
and marine radio services use a very high frequency (``VHF'') marine or
aircraft radio and, as appropriate, an emergency position-indicating
radio beacon (and/or radar) or an emergency locator transmitter. The
Commission has not developed a small business size standard
specifically applicable to these small businesses. For purposes of this
analysis, the Commission uses the SBA small business size standard for
the category ``Cellular and Other Telecommunications,'' which is 1,500
or fewer employees.\277\ Most applicants for recreational licenses are
individuals. Approximately 581,000 ship station licensees and 131,000
aircraft station licensees operate domestically and are not subject to
the radio carriage requirements of any statute or treaty. For purposes
of our evaluations in this analysis, we estimate that there are up to
approximately 712,000 licensees that are small businesses (or
individuals) under the SBA standard. In addition, between December 3,
1998 and December 14, 1998, the Commission held an auction of 42 VHF
Public Coast licenses in the 157.1875-157.4500 MHz (ship transmit) and
161.775-162.0125 MHz (coast transmit) bands. For purposes of the
auction, the Commission defined a ``small'' business as an entity that,
together with controlling interests and affiliates, has average gross
revenues for the preceding three years not to exceed $15 million
dollars. In addition, a ``very small'' business is one that, together
with controlling interests and affiliates, has average gross revenues
for the preceding three years not to exceed $3 million dollars.\278\
There are approximately 10,672 licensees in the Marine Coast Service,
and the Commission estimates that almost all of them qualify as
``small'' businesses under the above special small business size
standards.
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\277\ 13 CFR 121.201, NAICS code 517212.
\278\ Amendment of the Commission's Rules Concerning Maritime
Communications, Third Report and Order and Memorandum Opinion and
Order, 13 FCC Rcd 19853 (1998).
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124. Personal Radio Services. Personal radio services provide
short-range, low power radio for personal communications, radio
signaling, and business communications not provided for in other
services. The Personal Radio Services include spectrum licensed under
Part 95 of our rules.\279\ These services include Citizen Band Radio
Service (``CB''), General Mobile Radio Service (``GMRS''), Radio
Control Radio Service (``R/C''), Family Radio Service (``FRS''),
Wireless Medical Telemetry Service (``WMTS''), Medical Implant
Communications Service (``MICS''), Low Power Radio Service (``LPRS''),
and Multi-Use Radio Service (``MURS'').\280\ There are a variety of
methods used to license the spectrum in these rule parts, from
licensing by rule, to conditioning operation on successful completion
of a required test, to site-based licensing, to geographic area
licensing. Under the RFA, the Commission is required to make a
determination of which small entities are directly affected by the
rules being proposed. Since all such entities are wireless, we apply
the definition of cellular and other wireless telecommunications,
pursuant to which a small entity is defined as employing 1,500 or fewer
persons.\281\ Many of the licensees in these services are individuals,
and thus are not small entities. In addition, due to the mostly
unlicensed and shared nature of the spectrum utilized in many of these
services, the Commission lacks direct information upon which to base an
estimation of the number of small entities under an SBA definition that
might be directly affected by the proposed rules.
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\279\ 47 CFR Part 90.
\280\ The Citizens Band Radio Service, General Mobile Radio
Service, Radio Control Radio Service, Family Radio Service, Wireless
Medical Telemetry Service, Medical Implant Communications Service,
Low Power Radio Service, and Multi-Use Radio Service are governed by
Subpart D, Subpart A, Subpart C, Subpart B, Subpart H, Subpart I,
Subpart G, and Subpart J, respectively, of Part 95 of the
Commission's rules. See generally 47 CFR Part 95.
\281\ 13 CFR 121.201, NAICS Code 517212.
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125. Public Safety Radio Services. Public Safety radio services
include police, fire, local government, forestry conservation, highway
maintenance, and emergency medical services.\282\ There are a total of
approximately 127,540 licensees in these services. Governmental
entities \283\ as well as private businesses comprise the licensees for
these services. All governmental entities with populations of less than
50,000 fall within the definition of a small entity.\284\
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\282\ With the exception of the special emergency service, these
services are governed by Subpart B of part 90 of the Commission's
Rules, 47 CFR 90.15-90.27. The police service includes approximately
27,000 licensees that serve state, county, and municipal enforcement
through telephony (voice), telegraphy (code) and teletype and
facsimile (printed material). The fire radio service includes
approximately 23,000 licensees comprised of private volunteer or
professional fire companies as well as units under governmental
control. The local government service that is presently comprised of
approximately 41,000 licensees that are state, county, or municipal
entities that use the radio for official purposes not covered by
other public safety services. There are approximately 7,000
licensees within the forestry service which is comprised of
licensees from state departments of conservation and private forest
organizations who set up communications networks among fire lookout
towers and ground crews. The approximately 9,000 state and local
governments are licensed to highway maintenance service provide
emergency and routine communications to aid other public safety
services to keep main roads safe for vehicular traffic. The
approximately 1,000 licensees in the Emergency Medical Radio Service
(``EMRS'') use the 39 channels allocated to this service for
emergency medical service communications related to the delivery of
emergency medical treatment. 47 CFR 90.15-90.27. The approximately
20,000 licensees in the special emergency service include medical
services, rescue organizations, veterinarians, handicapped persons,
disaster relief organizations, school buses, beach patrols,
establishments in isolated areas, communications standby facilities,
and emergency repair of public communications facilities. 47 CFR
90.33-90.55.
\283\ 47 CFR 1.1162.
\284\ 5 U.S.C. 601(5).
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[[Page 30583]]
IV. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
126. With certain exceptions, the Commission's Schedule of
Regulatory Fees applies to all Commission licensees and regulatees.
Most licensees will be required to count the number of licenses or call
signs authorized, complete and submit an FCC Form 159 Remittance
Advice, and pay a regulatory fee based on the number of licenses or
call signs.\285\ Interstate telephone service providers must compute
their annual regulatory fee based on their interstate and international
end-user revenue using information they already supply to the
Commission in compliance with the Form 499-A, Telecommunications
Reporting Worksheet, and they must complete and submit the FCC Form
159. Compliance with the fee schedule will require some licensees to
tabulate the number of units (e.g., cellular telephones, pagers, cable
TV subscribers) they have in service, and complete and submit an FCC
Form 159. Licensees ordinarily will keep a list of the number of units
they have in service as part of their normal business practices. No
additional outside professional skills are required to complete the FCC
Form 159, and it can be completed by the employees responsible for an
entity's business records.
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\285\ See 47 CFR 1.1162 for the general exemptions from
regulatory fees. E.g., Amateur radio licensees (except applicants
for vanity call signs) and operators in other non-licensed services
(e.g., Personal Radio, part 15, ship and aircraft). Governments and
non-profit (exempt under section 501(c) of the Internal Revenue
Code) entities are exempt from payment of regulatory fees and need
not submit payment. Non-commercial educational broadcast licensees
are exempt from regulatory fees as are licensees of auxiliary
broadcast services such as low power auxiliary stations, television
auxiliary service stations, remote pickup stations and aural
broadcast auxiliary stations where such licenses are used in
conjunction with commonly owned non-commercial educational stations.
Emergency Alert System licenses for auxiliary service facilities are
also exempt as are instructional television fixed service licensees.
Regulatory fees are automatically waived for the licensee of any
translator station that: (1) Is not licensed to, in whole or in
part, and does not have common ownership with, the licensee of a
commercial broadcast station; (2) does not derive income from
advertising; and (3) is dependent on subscriptions or contributions
from members of the community served for support. Receive only earth
station permittees are exempt from payment of regulatory fees. A
regulatee will be relieved of its fee payment requirement if its
total fee due, including all categories of fees for which payment is
due by the entity, amounts to less than $10.
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127. Each licensee must submit the FCC Form 159 to the Commission's
lockbox bank after computing the number of units subject to the fee.
Licensees may also file electronically to minimize the burden of
submitting multiple copies of the FCC Form 159. Applicants who pay
small fees in advance and provide fee information as part of their
application must use FCC Form 159.
128. Licensees and regulatees are advised that failure to submit
the required regulatory fee in a timely manner will subject the
licensee or regulatee to a late payment penalty of 25 percent in
addition to the required fee.\286\ If payment is not received, new or
pending applications may be dismissed, and existing authorizations may
be subject to rescission.\287\ Further, in accordance with the DCIA,
federal agencies may bar a person or entity from obtaining a federal
loan or loan insurance guarantee if that person or entity fails to pay
a delinquent debt owed to any federal agency.\288\ Nonpayment of
regulatory fees is a debt owed the United States pursuant to 31 U.S.C.
3711 et seq. and the DCIA. Appropriate enforcement measures as well as
administrative and judicial remedies, may be exercised by the
Commission. Debts owed to the Commission may result in a person or
entity being denied a federal loan or loan guarantee pending before
another federal agency until such obligations are paid.\289\
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\286\ 47 CFR 1.1164.
\287\ 47 CFR 1.1164(c).
\288\ Public Law 104-134, 110 Stat. 1321 (1996).
\289\ 31 U.S.C. 7701(c)(2)(B).
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129. The Commission's rules currently provide for relief in
exceptional circumstances. Persons or entities may request a waiver,
reduction or deferment of payment of the regulatory fee.\290\ However,
timely submission of the required regulatory fee must accompany
requests for waivers or reductions. This will avoid any late payment
penalty if the request is denied. The fee will be refunded if the
request is granted. In exceptional and compelling instances (where
payment of the regulatory fee along with the waiver or reduction
request could result in reduction of service to a community or other
financial hardship to the licensee), the Commission will defer payment
in response to a request filed with the appropriate supporting
documentation.
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\290\ 47 CFR 1.1166.
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V. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
130. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its proposed approach,
which may include the following four alternatives: (1) The
establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities;
(3) the use of performance, rather than design, standards; and (4) an
exemption from coverage of the rule, or any part thereof, for small
entities.\291\ In the NPRM, we have sought comment on alternatives that
might simplify our fee procedures or otherwise benefit filers,
including small entities, while remaining consistent with our statutory
responsibilities in this proceeding.
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\291\ 5 U.S.C. 603.
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131. Several categories of licensees and regulatees are exempt from
payment of regulatory fees. Also, waiver procedures provide regulatees,
including small entity regulatees, relief in exceptional circumstances.
VI. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
132. None.
Attachment B--Sources of Payment Unit Estimates for FY 2008
In order to calculate individual service fees for FY 2008, we
adjusted FY 2007 payment units for each service to more accurately
reflect expected FY 2008 payment liabilities. We obtained our updated
estimates through a variety of means. For example, we used Commission
licensee data bases, actual prior year payment records and industry and
trade association projections when available. The databases we
consulted include our Universal Licensing System (``ULS''),
International Bureau Filing System (``IBFS''), Consolidated Database
System (``CDBS'') and Cable Operations and Licensing System
(``COALS''), as well as reports generated within the Commission such as
the Wireline Competition Bureau's Trends in Telephone Service and the
Wireless Telecommunications Bureau's Numbering Resource Utilization
Forecast.
We tried to obtain verification for these estimates from multiple
sources and, in all cases; we compared FY 2008 estimates with actual FY
2007 payment units to ensure that our revised estimates were
reasonable. Where appropriate, we adjusted and/or rounded our final
estimates to take into consideration the fact that certain variables
that impact on the number of payment units cannot yet be estimated
exactly. These include an unknown
[[Page 30584]]
number of waivers and/or exemptions that may occur in FY 2008 and the
fact that, in many services, the number of actual licensees or station
operators fluctuates from time to time due to economic, technical, or
other reasons. When we note, for example, that our estimated FY 2008
payment units are based on FY 2007 actual payment units, it does not
necessarily mean that our FY 2008 projection is exactly the same number
as FY 2007. We have either rounded the FY 2008 number or adjusted it
slightly to account for these variables.
------------------------------------------------------------------------
Fee category Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, 218-219 Based on Wireless
MHz, Marine (Ship & Coast), Aviation Telecommunications Bureau
(Aircraft & Ground), GMRS, Amateur (``WTB'') projections of new
Vanity Call Signs, Domestic Public applications and renewals taking
Fixed. into consideration existing
Commission licensee data bases.
Aviation (Aircraft) and Marine
(Ship) estimates have been
adjusted to take into
consideration the licensing of
portions of these services on a
voluntary basis.
CMRS Cellular/Mobile Services........ Based on WTB projection reports,
and FY 07 payment data.
CMRS Messaging Services.............. Based on WTB reports, and FY 07
payment data.
AM/FM Radio Stations................. Based on CDBS data, adjusted for
exemptions, and actual FY 2007
payment units.
UHF/VHF Television Stations.......... Based on CDBS data, adjusted for
exemptions, and actual FY 2007
payment units.
AM/FM/TV Construction Permits........ Based on CDBS data, adjusted for
exemptions, and actual FY 2007
payment units.
LPTV, Translators and Boosters, Class Based on CDBS data, adjusted for
A Television. exemptions, and actual FY 2007
payment units.
Broadcast Auxiliaries................ Based on actual FY 2007 payment
units.
BRS (formerly MDS/MMDS).............. Based on WTB reports and actual
FY 2007 payment units.
Cable Television Relay Service Based on data from Media Bureau's
(``CARS'') Stations. COALS database and actual FY
2007 payment units.
Cable Television System Subscribers.. Based on publicly available data
sources for estimated subscriber
counts and actual FY 2007
payment units.
Interstate Telecommunication Service Based on FCC Form 499-Q data for
Providers. the four quarters of calendar
year 2007, the Wireline
Competition Bureau projected the
amount of calendar year 2007
revenue that will be reported on
2008 FCC Form 499-A worksheets
in April, 2008.
Earth Stations....................... Based on International Bureau
(``IB'') licensing data and
actual FY 2007 payment units.
Space Stations (GSOs & NGSOs)........ Based on IB data reports and
actual FY 2007 payment units.
International Bearer Circuits........ Based on IB reports and actual FY
2007 payment units.
International HF Broadcast Stations, Based on IB reports and actual FY
International Public Fixed Radio 2007 payment units.
Service.
------------------------------------------------------------------------
Attachment C--Calculation of FY2008 Revenue Requirements and Pro-Rata
Fees
Regulatory fees for the categories shaded in gray are collected by
the Commission in advance to cover the term of the license and are
submitted along with the application at the time the application is
filed.
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Attachment D--Proposed FY 2008 Schedule of Regulatory Fees
Regulatory fees for the categories shaded in gray are collected by
the Commission in advance to cover the term of the license and are
submitted along with the application at the time the application is
filed.
[[Page 30588]]
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[[Page 30590]]
FY 2008 Schedule of Regulatory Fees (continued)
FY 2008 Radio Station Regulatory Fees
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FM classes
Population served AM class A AM class B AM class C AM class D FM classes B, C, C0,
A, B1 & C3 C1 & C2
----------------------------------------------------------------------------------------------------------------
<=25,000.......................... $650 $500 $450 $525 $600 $775
25,001-75,000..................... 1,325 1,025 650 775 1,225 1,375
75,001-150,000.................... 1,975 1,275 875 1,300 1,675 2,550
150,001-500,000................... 2,975 2,175 1,325 1,550 2,600 3,325
500,001-1,200,000................. 4,300 3,325 2,200 2,575 4,125 4,900
1,200,001-3,000,00................ 6,600 5,100 3,300 4,125 6,700 7,850
>3,000,000........................ 7,925 6,125 4,175 5,150 8,550 10,200
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Attachment E--Factors, Measurements, and Calculations that go into
Determining Station Signal Contours and Associated Population Coverages
AM Stations
For stations with nondirectional daytime antennas, the theoretical
radiation was used at all azimuths. For stations with directional
daytime antennas, specific information on each day tower, including
field ratio, phasing, spacing and orientation was retrieved, as well as
the theoretical pattern root-mean-square of the radiation in all
directions in the horizontal plane (``RMS'') figure milliVolt per meter
(mV/m) @ 1 km) for the antenna system. The standard, or modified
standard if pertinent, horizontal plane radiation pattern was
calculated using techniques and methods specified in section73.150 and
73.152 of the Commission's rules.\292\ Radiation values were calculated
for each of 360 radials around the transmitter site. Next, estimated
soil conductivity data was retrieved from a database representing the
information in FCC Figure R3 \293\. Using the calculated horizontal
radiation values, and the retrieved soil conductivity data, the
distance to the principal community (5 mV/m) contour was predicted for
each of the 360 radials. The resulting distance to principal community
contours were used to form a geographical polygon. Population counting
was accomplished by determining which 2000 block centroids were
contained in the polygon. (A block centroid is the center point of a
small area containing population as computed by the U.S. Census
Bureau.) The sum of the population figures for all enclosed blocks
represents the total population for the predicted principal community
coverage area.
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\292\ 47 CFR 73.150 and 73.152.
\293\ See Map of Estimated Effective Ground Conductivity in the
United States, 47 CFR 73.190 Figure R3.
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FM Stations
The greater of the horizontal or vertical effective radiated power
(``ERP'') (kW) and respective height above average terrain (``HAAT'')
(m) combination was used. Where the antenna height above mean sea level
(``HAMSL'') was available, it was used in lieu of the average HAAT
figure to calculate specific HAAT figures for each of 360 radials under
study. Any available directional pattern information was applied as
well, to produce a radial-specific ERP figure. The HAAT and ERP figures
were used in conjunction with the Field Strength (50-50) propagation
curves specified in 47 CFR 73.313 of the Commission's rules to predict
the distance to the principal community (70 dBu (decibel above 1
microVolt per meter) or 3.17 mV/m) contour for each of the 360
radials.\294\ The resulting distance to principal community contours
were used to form a geographical polygon. Population counting was
accomplished by determining which 2000 block centroids were contained
in the polygon. The sum of the population figures for all enclosed
blocks represents the total population for the predicted principal
community coverage area.
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\294\ 294 47 CFR 73.313.
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Attachment F--FY 2007 Schedule of Regulatory Fees
------------------------------------------------------------------------
Annual
Fee category regulatory fee
(U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).. 35
Microwave (per license) (47 CFR part 101)............. 40
218-219 MHz (Formerly Interactive Video Data Service) 55
(per license) (47 CFR part 95).......................
Marine (Ship) (per station) (47 CFR part 80).......... 10
Marine (Coast) (per license) (47 CFR part 80)......... 30
General Mobile Radio Service (per license) (47 CFR 5
part 95).............................................
Rural Radio (47 CFR part 22) (previously listed under 15
the Land Mobile category)............................
PLMRS (Shared Use) (per license) (47 CFR part 90)..... 15
Aviation (Aircraft) (per station) (47 CFR part 87).... 5
Aviation (Ground) (per license) (47 CFR part 87)...... 10
Amateur Vanity Call Signs (per call sign) (47 CFR part 1.17
97)..................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts .18
20, 22, 24, 27, 80 and 90)...........................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90).......................................
Broadband Radio Service (formerly MMDS/MDS) (per 325
license sign) (47 CFR part 21).......................
Local Multipoint Distribution Service (per call sign) 325
(47 CFR part 101)....................................
AM Radio Construction Permits......................... 400
FM Radio Construction Permits......................... 575
TV (47 CFR part 73) VHF Commercial....................
[[Page 30591]]
Markets 1-10...................................... 64,300
Markets 11-25..................................... 46,350
Markets 26-50..................................... 31,075
Markets 51-100.................................... 20,000
Remaining Markets................................. 5,125
Construction Permits.............................. 5,125
TV (47 CFR part 73) UHF Commercial....................
Markets 1-10...................................... 19,650
Markets 11-25..................................... 19,450
Markets 26-50..................................... 10,800
Markets 51-100.................................... 6,300
Remaining Markets................................. 1,750
Construction Permits.............................. 1,750
Satellite Television Stations (All Markets)........... 1,100
Construction Permits--Satellite Television Stations... 550
Low Power TV, TV/FM Translators & Boosters (47 CFR 345
part 74).............................................
Broadcast Auxiliary (47 CFR part 74).................. 10
CARS (47 CFR part 78)................................. 185
Cable Television Systems (per subscriber) (47 CFR part .75
76)..................................................
Interstate Telecommunication Service Providers (per .00266
revenue dollar)......................................
Earth Stations (47 CFR part 25)....................... 185
Space Stations (per operational station in 109,200
geostationary orbit) (47 CFR part 25) also includes
Direct Broadcast Satellite Service (per operational
station) (47 CFR part 100)...........................
Space Stations (per operational system in non- 116,475
geostationary orbit) (47 CFR part 25)................
International Bearer Circuits (per active 64KB 1.05
circuit).............................................
International Public Fixed (per call sign) (47 CFR 1,875
part 23).............................................
International (HF) Broadcast (47 CFR part 73)......... 795
------------------------------------------------------------------------
FY 2007 Schedule of Regulatory Fees (continued)
FY 2007 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
FM classes
Population served AM class A AM class B AM class C AM class D FM classes B, C, C0,
A, B1 & C3 C1 & C2
----------------------------------------------------------------------------------------------------------------
<=25,000.......................... $625 $475 $400 $475 $575 $725
25,001-75,000..................... 1,225 925 600 725 1,150 1,250
75,001-150,000.................... 1,825 1,150 800 1,200 1,600 2,300
150,001-500,000................... 2,750 1,950 1,200 1,425 2,475 3,000
500,001-1,200,000................. 3,950 2,975 2,000 2,375 3,900 4,400
1,200,001-3,000,00................ 6,075 4,575 3,000 3,800 6,350 7,025
>3,000,000........................ 7,275 5,475 3,800 4,750 8,075 9,125
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[FR Doc. E8-11891 Filed 5-27-08; 8:45 am]
BILLING CODE 6712-01-P