FR Doc E9-19104

[Federal Register: August 11, 2009 (Volume 74, Number 153)]
[Rules and Regulations]
[Page 40089-40116]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au09-15]

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 09-65; MD Docket No. 08-65; FCC 09-62]

Assessment and Collection of Regulatory Fees for Fiscal Year 2009

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, we amend our Schedule of Regulatory Fees to
collect $341,875,000 in regulatory fees for Fiscal Year (FY) 2009,
pursuant to section 9 of the Communications Act of 1934, as amended
(the Act). These fees are mandated by Congress and are collected to
recover the regulatory costs associated with the Commission's
enforcement, policy and rulemaking, user information, and international
activities.

DATES: Effective September 10, 2009.

FOR FURTHER INFORMATION CONTACT: Daniel Daly, Office of Managing
Director at (202) 418-1832, or Roland Helvajian, Office of Managing
Director at (202) 418-0444.

SUPPLEMENTARY INFORMATION:

I. Introduction

1. In this Report and Order we conclude the Assessment and
Collection of Regulatory Fees for Fiscal Year (FY) 2009 proceeding \1\
to collect $341,875,000 in regulatory fees for FY 2009, pursuant to
section 9 of the Communications Act of 1934, as amended (the Act).
Section 9 regulatory fees are mandated by Congress and are collected to
recover the regulatory costs associated with the Commission's
enforcement, policy and rulemaking, user information, and international
activities.\2\ The annual regulatory fee amount to be collected is
established each year in the Commission's annual appropriations act
which is adopted by Congress and signed by the President and which
funds the Commission.\3\ In this annual regulatory fee proceeding, we
retain many of the established methods, policies, and procedures for
collecting section 9 regulatory fees adopted by the Commission in prior
years. Consistent with our established practice, we intend to collect
these regulatory fees during a filing window in September 2009 in order
to collect the required amount by the end of our fiscal year.
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\1\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2009, MD Docket No. 09-65, Notice of Proposed Rulemaking and
Order, 24 FCC Rcd 5966 (2009) (FY 2009 NPRM and Order).
\2\ 47 U.S.C. 159(a).
\3\ See Omnibus Appropriations Act, 2009, P.L. 111-8, for the FY
2009 appropriations act language for the Commission establishing the
amount of $341,875,000 of offsetting collections to be assessed and
collected by the Commission pursuant to section 9 of the
Communications Act.
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II. Report and Order

2. On May 14, 2009, we released a Notice of Proposed Rulemaking and
Order (FY 2009 NPRM and Order, 74 FR 26329, June 2, 2009) seeking
comment on regulatory fee issues for FY 2009.\4\ The section 9
regulatory fee proceeding is an annual rulemaking process to ensure the
Commission collects the fee amount required by Congress each year. In
the FY 2009 NPRM and Order, we proposed to largely retain the section 9
regulatory fee methodology used in the prior fiscal year except as
discussed below. We received nine comments and two reply comments.\5\
We address the issues raised in our FY 2009 NPRM and Order below.
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\4\ See FY 2009 NPRM and Order.
\5\ See Appendix A for the list of commenters and abbreviated
names.
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A. FY 2009 Regulatory Fee Assessment Methodology--Development of FY
2009 Regulatory Fees

3. We note at the outset that in the context of their comments on
the FY 2009 regulatory fee proceeding, commenters \6\ discussed the
Commission's Further Notice of Proposed Rulemaking, which accompanied
the FY 2008 regulatory fee Report and Order (FY 2008 Report and Order,
73 FR 50285, August 26, 2008).\7\ Through that proceeding the

[[Page 40090]]

Commission sought comment on how it could comprehensively make the
Commission's regulatory fee process more equitable.\8\ In the FY 2009
NPRM and Order, we adopted two proposals raised in the Further Notice
of Proposed Rulemaking in the FY 2008 Report and Order.\9\ The other
outstanding matters stemming from the Further Notice of Proposed
Rulemaking in the FY 2008 Report and Order will be decided at a later
time in a separate Report and Order.\10\
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\6\ See comments from American Association of Paging Carriers
(AAPC); Coalition of Canadian-Based Service Providers (Coalition);
Independent Telephone and Telecommunications Alliance (ITTA); and
United States Telecom Association (USTelecom).
\7\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, MD Docket No. 08-65, Report and Order and Further Notice
of Proposed Rulemaking, 24 FCC Rcd 6389 (2008) (FY 2008 Report and
Order).
\8\ FY 2008 Report and Order at paragraph 2.
\9\ FY 2009 NPRM and Order at paragraphs 2-5; FY 2008 Report and
Order at paragraphs 55 and 56.
\10\ In an effort to explore how the Commission could
comprehensively make the regulatory fee process more equitable, the
Commission sought and received comments during FY 2008 about the
regulatory fee process, the calculation of regulatory fees, and
issues relating to specific categories of fees. FY 2008 Report and
Order at paragraphs 25-58. The comprehensive regulatory fee revision
issues raised in the FY 2008 Further Notice of Proposed Rulemaking
remain outstanding at this time.
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4. In our FY 2009 regulatory fee assessment, we will use the same
section 9 regulatory fee assessment methodology adopted for FY 2008.
Each fiscal year, the Commission proportionally allocates the total
amount that must be collected via section 9 regulatory fees. The
results of our FY 2009 regulatory fee assessment methodology (including
a comparison to the prior year's results) are contained in Appendix B.
To collect the $341,875,000 required by Congress, we adjust the FY 2008
amount upward by approximately 9.6 percent and allocate this amount
across the various fee categories. Consistent with past practice, we
then divide the FY 2009 amount by the number of payment units in each
fee category to determine the unit fee.\11\ As in prior years, for
cases involving small fees, e.g., licenses that are renewed over a
multiyear term, we divide the resulting unit fee by the term of the
license and then round these unit fees consistent with the requirements
of section 9(b)(2) of the Act.
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\11\ In many instances, the regulatory fee amount is a flat fee
per licensee or regulatee. In some instances, the fee amount
represents a per-unit fee (such as for International Bearer
Circuits), a per-unit subscriber fee (such as for Cable, Commercial
Mobile Radio Service (CMRS) Cellular/Mobile and CMRS Messaging), or
a fee factor per revenue dollar (Interstate Telecommunications
Service Provider (ITSP) fee). The payment unit is the measure upon
which the fee is based, such as a licensee, regulatee, or subscriber
fee.
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5. In calculating the FY 2009 regulatory fees listed in Appendix C,
we further adjusted the FY 2008 list of payment units (see Appendix D)
based upon licensee databases and industry and trade group projections.
In some instances, Commission licensee databases were used; in other
instances, actual prior year payment records and/or industry and trade
association projections were used in determining the payment unit
counts.\12\ Where appropriate, we adjusted and rounded our final
estimates to take into consideration events that may impact the number
of units for which regulatees submit payment, such as waivers and
exemptions that may be filed in FY 2009, and fluctuations in the number
of licensees or station operators due to economic, technical, or other
reasons. Therefore, our estimated FY 2009 payment units are based on FY
2008 actual payment units, but the number may have been rounded or
adjusted slightly to account for these variables.
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\12\ The databases we consulted are the following: the
Commission's Universal Licensing System (ULS), International Bureau
Filing System (IBFS), Consolidated Database System (CDBS) and Cable
Operations and Licensing System (COALS). We also consulted industry
sources including, but not limited to, Television & Cable Factbook
by Warren Publishing, Inc. and the Broadcasting and Cable Yearbook
by Reed Elsevier, Inc., 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 and Annual CMRS Competition
Report.
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1. AM and FM Radio Stations
6. As in previous years, we consider additional factors in
determining regulatory fees for AM and FM radio stations. We did not
receive any comments on the use of these factors. These factors are
facility attributes and the population served by the radio station. The
calculation of the population served is determined by coupling current
U.S. Census Bureau data with technical and engineering data, as
detailed in Appendix E. Consequently, the population served, as well as
the class and type of service (AM or FM), will continue to determine
the regulatory fee amount to be paid.\13\
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\13\ In addition, beginning in FY 2005, we established a
procedure by which we set regulatory fees for AM and FM radio and
VHF and UHF television Construction Permits each year at an amount
no higher than the lowest regulatory fee in that respective service
category. For example, the regulatory fee for a Construction Permit
for an AM radio station will never be more than the regulatory fee
for an AM Class C radio station serving a population of less than
25,000.
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2. Submarine Cable Methodology
7. In a Second Report and Order (Submarine Cable Order, 24 FCC Rcd)
released on March 24, 2009, the Commission adopted a new submarine
cable bearer circuit methodology that assessed regulatory fees on a per
cable landing license basis, with higher fees for larger submarine
cable systems and lower fees for smaller systems, without
distinguishing between common carriers and non-common carriers.\14\ For
the other categories of international bearer circuits--common carrier
and non-common carrier satellite facilities and common carrier
terrestrial facilities--the Submarine Cable Order retained the existing
regulatory fee methodology of assessing fees on a per 64 kbps circuit
basis.
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\14\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, Second Report and Order, 24 FCC Rcd 4208, paragraph 1
(May 12, 2009) (Submarine Cable Order).
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8. By way of brief background, in the proposed fee rates for
submarine cable systems in the FY 2009 NPRM and Order,\15\ the
Commission allocated the total FY 2009 bearer circuit expected revenue
into two revenue components: a submarine cable revenue component (87.6
percent) and a satellite/terrestrial revenue component (12.4 percent)
using the Consensus Proposal allocation adopted by the Commission in
the Submarine Cable Order.\16\ According to the Consensus Proposal,
this allocation of 87.6 percent (submarine cable) and 12.4 percent
(satellite/terrestrial) was calculated by determining the revenue
obligations of submarine cable systems with the revenue obligations of
the satellite and terrestrial facilities using the FY 2008 revenue
requirement as its basis.\17\ For calculating these new bearer circuit
fees, we will use these allocation percentages of 87.6 percent
(submarine cable) and 12.4 percent (satellite and terrestrial) as a
starting point. Consistent with the Commission's annual process of
updating its schedule of regulatory fees based on the most recent data,
we will re-examine the allocation percentages described above on an
annual basis as the starting point for applying the new submarine cable
methodology.
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\15\ See FY 2009 NPRM and Order at Appendix A.
\16\ See Submarine Cable Order at paragraphs 1 and 6.
\17\ Id. at 6.
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9. After the adoption of the Submarine Cable Order, the Commission
notified Congress on April 15, 2009 per section 9(b)(4)(B) of the
Communications Act of the methodology change.\18\ The pending 90-day
congressional notification period expired on July 15, 2009. The new
bearer circuit methodology is effective.

[[Page 40091]]

The FY 2009 regulatory fee rates for submarine cable systems included
in the FY 2009 Schedule of Regulatory Fees in Appendix C reflect the
Commission's adoption of the methodology in the Submarine Cable Order.
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\18\ 47 U.S.C. 159(b)(4)(B); Letter concerning permitted
amendment from Office of Managing Director, Federal Communications
Commission to Chair and Ranking Members of U.S. House of
Representatives' Committees on Energy and Commerce and
Appropriations and applicable Subcommittees and to Chair and Ranking
Members of the United States Senate Committees on Commerce, Science,
and Transportation and Appropriations and applicable Subcommittees
(sent April 15, 2009).
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3. Elimination of Regulatory Fee Categories for International Public
Fixed Radio and International High Frequency Broadcast Stations
10. In our FY 2008 Report and Order, we sought comment on
eliminating several categories of services from our schedule of
regulatory fees.\19\ The Commission received no comments on those
proposals. In the FY 2009 NPRM and Order, the Commission adopted an
Order which eliminated the regulatory fee categories for International
Public Fixed Radio and International High Frequency Broadcast
Stations.\20\
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\19\ FY 2008 Report and Order at paragraphs 55 and 56.
\20\ FY 2009 NPRM and Order at paragraph 5.
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11. After the adoption of the FY 2009 NPRM and Order, the
Commission notified Congress on May 20, 2009 per section 9(b)(4)(B) of
the Communications Act of the methodology change.\21\ After the pending
90-day congressional notification period expires, i.e., after August
18, 2009, the elimination of these two regulatory fee categories will
become effective. The FY 2009 Schedule of Regulatory Fees in Appendix C
reflects the elimination of these two categories based on the
Commission's action in the FY 2009 NPRM and Order.
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\21\ 47 U.S.C. 159(b)(4)(B); Letter concerning permitted
amendment from Office of Managing Director, Federal Communications
Commission to Chair and Ranking Members of U.S. House of
Representatives' Committees on Energy and Commerce and
Appropriations and applicable Subcommittees and to Chair and Ranking
Members of the United States Senate Committees on Commerce, Science,
and Transportation and Appropriations and applicable Subcommittees
(sent May 20, 2009).
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B. Regulatory Fee Obligations for Digital Broadcasters

12. In our FY 2009 NPRM and Order, we reiterated that consistent
with past years, we would not assess FY 2009 regulatory fees for both
digital and analog licenses from a licensee in the process of
transitioning from analog to digital.\22\ Furthermore, we stated that
stations that were broadcasting in both analog and digital on October
1, 2008 would be assessed FY 2009 regulatory fees for their analog
license only.\23\ Also consistent with our past practice, we noted that
stations that were broadcasting in digital only on October 1, 2008
would not be assessed regulatory fees for their digital license for FY
2009.\24\
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\22\ FY 2009 NPRM and Order at paragraph 10.
\23\ Id.
\24\ Id.
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13. In our FY 2009 NPRM and Order, we proposed that beginning in FY
2010, we plan to collect regulatory fees from digital broadcasters, and
we sought comment on this plan to collect regulatory fees on full-power
digital broadcast stations beginning with FY 2010, i.e., the fiscal
year after the nation-wide transition date on June 12, 2009.\25\ We
received no comments on this issue. Our goal is to ensure that digital
broadcasters will pay their share of regulatory fees in the years after
the nation-wide transition is complete. Therefore, in FY 2010, we will
collect regulatory fees from digital broadcasters. During the FY 2010
regulatory fee process, we will again remind digital broadcasters of
their regulatory fee obligations.
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\25\ Id. at paragraph 11.
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C. Commercial Mobile Radio Service Messaging Service

14. Commercial Mobile Radio Service (CMRS) Messaging Service, which
replaced the CMRS One-Way Paging fee category in 1997, includes all
narrowband services.\26\ In the FY 2009 NPRM and Order, we proposed
maintaining the messaging service regulatory fee at $0.08 per
subscriber, the rate first established for this service in FY 2002.\27\
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\26\ 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, paragraph 60 (1997) (FY 1997 Report and Order).
\27\ FY 2009 NPRM and Order at paragraph 12.
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15. One commenter, AAPC, addressed this issue.\28\ AAPC submits
that maintaining the fee at the existing level is the minimum
reasonable and appropriate action under the prevailing circumstances in
the paging industry.\29\ We conclude that for FY 2009 we should
continue this regulatory fee rate at $0.08 per subscriber due to the
declining subscriber base in this industry.\30\
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\28\ AAPC Comments at 1-4.
\29\ Id. at 2.
\30\ The subscriber base in the paging industry declined 83
percent from 40.8 million to 6.95 million, from FY 1997 to FY 2008,
according to FY 2008 collection data as of September 30, 2008.
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D. International Bearer Circuits

1. Terrestrial Non-Common Carrier Circuits
16. As part of our comprehensive effort to review our regulatory
fees process for possible ways to make the process more equitable, we
sought comment in our FY 2009 NPRM and Order on whether, beginning in
FY 2010, carriers providing international service over terrestrial
circuits should also pay international bearer circuit (IBC) fees on
non-common carrier circuits.\31\ Five parties filed comments or reply
comments. In joint comments, Bestel USA Inc., Hibernia Atlantic US LLC,
and Level 3 Communications LLC (Joint Commenters) argue that carriers
should not be assessed regulatory fees on their non-common carrier
circuits, in part, because the Commission does not authorize those
services or collect data on them, and thus there is no burden on the
Commission to regulate these services.\32\ The Coalition of Canadian-
Based Service Providers (Coalition) echoes these arguments, contending
that international terrestrial fiber-based non-common carriers are not
regulated by the Commission, they do not hold 214 licenses, and are not
subject to enforcement and policymaking activities.\33\ Sprint Nextel
(Sprint) opposes the imposition of regulatory fees on terrestrial non-
common carrier bearer circuits that are used exclusively for providing
Internet/IP services.\34\ AT&T, on the other hand, argues that in the
interest of providing equitable treatment of all providers, per circuit
fees should be levied on non-common carrier terrestrial circuits.\35\
Verizon and Verizon Wireless agree with Joint Commenters, the Coalition
and Sprint, that non-common carrier services over terrestrial
international circuits is inherently different from such services over
satellite circuits and submarine cable systems.\36\ In its reply
comments, AT&T argues that non-common carrier terrestrial circuits
currently receive an unfair cost advantage because they are not
assessed a regulatory fee, and it is possible that common carriers will
increasingly market capacity on a non-common carrier basis to avoid
paying these fees, thereby increasing the fees for the smaller pool of
remaining common carrier circuits.\37\
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\31\ FY 2009 NPRM and Order at paragraph 13-14.
\32\ Bestel USA, Hibernia Atlantic US, and Level 3
Communications comments at 3-4.
\33\ Coalition comments at 3, 8-9.
\34\ Sprint comments at 1.
\35\ AT&T comments at 1.
\36\ Verizon and Verizon Wireless comments at 2-3.
\37\ AT&T reply comments at 1-2.
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17. The commenters present a number of competing arguments on
whether carriers should be assessed regulatory fees for their
terrestrial non-common carrier circuits. In the FY 2009 NRPM and Order,
we sought comment on whether we should make such an assessment starting
in FY 2010, at the earliest. Given the complexity of the

[[Page 40092]]

legal, policy and equity issues involved, we decline to make a
determination at this time. We may further consider this issue in the
future.

E. Administrative and Operational Issues

18. In our FY 2009 NPRM and Order, we sought general comment on
ways to improve our procedures in collecting annual section 9
regulatory fees.\38\ We received comments from the American Cable
Association (ACA) regarding the fee notification of CARS (Cable
Television Relay Service) and Earth Station licensees, and one specific
comment from AT&T to send annual notification assessments to licensees
of submarine cable systems. We received no reply comments relating to
our collection procedures and processes. We will address these comments
in the appropriate paragraphs below.
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\38\ FY 2009 NPRM and Order at paragraph 15.
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1. Mandatory Use of Fee Filer
19. In our FY 2009 NPRM and Order, we proposed to institute a
mandatory filing requirement using the Commission's electronic filing
and payment system (also known as Fee Filer).\39\ Fee Filer is not a
new system at the Commission, and although we have strongly encouraged
its use for many years for the filing and payment of annual regulatory
fees, we proposed this year to make its use mandatory. We received no
comments and no reply comments regarding this matter.
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\39\ FY 2009 NPRM and Order at paragraph 16.
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20. For the reasons discussed in the FY 2009 NPRM and Order, we
conclude that beginning in the FY 2009 regulatory fee cycle, licensees
filing their annual regulatory fee payments must begin the process by
entering the Commission's Fee Filer system with a valid FRN and
password. Therefore, it is very important for licensees to have a
current and valid FRN address on file in the Commission's Registration
System (CORES). Licensees will also need to have their FRN passwords
available when entering the Commission's CORES registration system. In
some instances, it will be necessary to use a specific FRN and password
that is linked to a particular regulatory fee bill. Going forward, only
Form 159-E documents generated from Fee Filer will be permitted when
sending in a regulatory fee payment to U.S. Bank. By requiring
licensees to use Fee Filer to begin the regulatory fee payment process,
errors resulting from illegible handwriting on hardcopy Form 159's will
be greatly reduced, and we will be able to create an electronic record
of licensee payment attributes that are more easily traced than those
payments that are simply mailed in with a hardcopy Form 159.
21. There are many benefits to licensees for using the Commission's
electronic filing and payment system: (1) Expeditious submission of
payment; (2) no postage or courier costs (when paid through Fee Filer);
(3) fewer errors caused by illegible handwriting or payments submitted
without an FRN number or the appropriate data attributes (e.g., payers
will avoid receiving delinquency notices because of payment submission
errors); (4) improved recordkeeping and payment reconciliation; (5)
reduced administrative burden on both licensees and on Commission staff
in processing regulatory fee payments; (6) less expensive than a wire
transfer; and (7) a reduced burden of preparing, mailing, and storing
paper documents.
22. We realize that not all licensees are able to pay their
regulatory fees using Fee Filer. In some instances, the regulatory fee
payment may be greater than $99,999, in which case, the use of a credit
card will be limited by restrictions placed on it by the U.S. Treasury.
For those licensees who choose to pay by check or money order or pay
via wire transfer, a voucher Form 159-E will be needed before mailing
the check to the Commission's lockbox bank, or in the case of a wire
transfer, faxing the Form 159-E to the lockbox bank. For those
licensees choosing to make a payment using their bank account (also
known as an Automated Clearing House (``ACH'') payment), the submission
of Form 159-E to the lockbox bank will not be necessary. In such
situations, regardless of whether a payment is made online or submitted
with a check or money order along with a Form 159-E, the Commission's
requirement now is to begin the process of paying regulatory fees by
starting with Fee Filer. The primary difference is that by starting the
payment process using Fee Filer, even if the payment is then mailed to
the Commission's lockbox bank, a voucher Form 159-E will be generated
that will have important electronic attributes associated with this
regulatory fee payment.
23. The mandatory use of Fee Filer to begin the regulatory fee
payment process is an important step forward in providing our licensees
with a paperless, electronic environment to use when conducting
business with the Commission. This practice of using Fee Filer will not
only enable the Commission to process regulatory fee payments more
efficiently and accurately, it will also benefit licensees by reducing
the administrative burden of filing and paying annual regulatory fees.
Because no comments or reply comments were submitted to the contrary
regarding this issue, we will institute a mandatory use of Fee Filer to
begin the process of filing to pay annual regulatory fees. Beginning in
the FY 2009 regulatory fee cycle, only Form 159-E documents generated
from Fee Filer will be permitted when sending in a regulatory fee
payment to U.S. Bank.
2. Notification and Collection of Regulatory Fees
a. Pre-Bills
24. In prior years, the Commission mailed pre-bills via surface
mail to licensees in select regulatory fee categories: Interstate
telecommunications service providers (ITSPs), Geostationary (GSO) and
Non-Geostationary (NGSO) satellite space station licensees,\40\ holders
of Cable Television Relay Service (CARS) licenses, and Earth Station
licensees.\41\ The remaining regulatees did not receive pre-bills. In
our FY 2009 NPRM and Order, we proposed to show the attributes of these
pre-bills on Fee Filer, but not actually mail them out to licensees via
surface mail.\42\ We received one general comment from the American
Cable Association (ACA), and one specific comment from AT&T. We
received no reply comments.
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\40\ Geostationary orbit space station (GSO) licensees received
regulatory fee pre-bills 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 regulatory fee pre-
bills for systems that were licensed by the Commission and
operational on or before October 1 of the respective fiscal year.
\41\ 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.
\42\ See FY 2009 NPRM and Order at paragraph 20.
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25. The ACA contends that because there are many small cable
operators and independent earth station licensees, the Commission
should provide notice to each licensee via e-mail when the pre-bill
information for CARS and Earth Stations is available for viewing in Fee
Filer.\43\ ACA understands why the

[[Page 40093]]

Commission has decided to discontinue mailing these pre-bills, but
contends that the Commission should consider e-mail as an alternate way
of notifying small operators that their bill information is available
in Fee Filer.\44\ ACA also contends that if the Commission decides to
cease mailing pre-bill notices, it is likely that many small operators
will be unaware of this change, and as a result, some operators may
inadvertently miss the filing deadline while waiting for receipt of the
pre-bill.\45\ For this reason, ACA suggests that cable operators with
5,000 or fewer subscribers should receive a 180-day grace period for FY
2009 CARS and Earth Station regulatory fee payments.\46\ In its
comments, AT&T recommends that the Commission send a separate annual
fee assessment notification to each submarine cable licensee informing
them of their obligation to pay submarine cable regulatory fees.\47\
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\43\ American Cable Association (ACA) comments at 4.
\44\ Id. at 4.
\45\ Id. at 5.
\46\ Id.
\47\ AT&T comments at 3.
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26. The Commission does not maintain a systematic listing of e-mail
addresses for individual CARS and Earth Station licensees, and so,
attempting to use such a listing to contact small cable operators and
independent earth station licensees may not prove useful. However,
because all pre-bills will be loaded into Fee Filer, once Fee Filer
becomes operational, this will be the signal by which licensees can
view their pre-bill information online. As we have for many years, the
Commission will post a Public Notice online announcing the date Fee
Filer will become operational, and once this Notice is published,
licensees will know that they can view their pre-bill information in
Fee Filer. Having provided this Notice to licensees and having urged
licensees to use Fee Filer for several years, the Commission will not
provide a 180-day grace period for regulatory fee payments as ACA
suggests.
27. In its comments, AT&T suggests that the Commission notify
licensees of their obligation to pay submarine cable system regulatory
fees. AT&T contends that because there is a new regulatory fee
methodology for submarine cable fees, and there can be multiple license
holders for each submarine cable system, the Commission should try to
contact the license holders of submarine cable systems to inform them
of their obligation to pay submarine cable regulatory fees.\48\ In the
Submarine Cable Order,\49\ the Commission did implement a regulatory
fee methodology change for submarine cable systems. Although there may
be multiple license holders for each submarine cable system, the total
number of license holders is small and information available for each
license holder is relatively accurate. However, rather than sending
individual notification assessments to each submarine cable licensee,
as AT&T suggests, the Commission in FY 2009 will publish a Public
Notice that identifies the license holders of each submarine cable
system. This Public Notice will serve as notice to all submarine cable
license holders of their FY 2009 obligation to pay regulatory fees
under the new methodology.
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\48\ Id. at 3.
\49\ See Submarine Cable Order at paragraph 1.
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III. Procedural Matters

28. Included below are procedural items as well as our current
payment and collection methods that we have revised over the past
several years to expedite the processing of regulatory fee payments. We
include these payments and collection procedures here as a useful way
to remind regulatory fee payers and the public about these aspects of
the annual regulatory fee collection process. For FY 2009, we have not
changed our procedures with the exception of Pre-Bills, which as
discussed above the Commission will no longer be sending out via
surface mail. We also discuss at the outset a procedural matter about
waivers raised by a commenter.
29. In its comments, the Named State Broadcasters Associations
(State Associations) suggested that the Commission's standard for
deciding whether to grant a waiver for financial hardship should be
revised to allow greater flexibility.\50\ The State Associations
commented that the current recession is crippling stations
nationwide.\51\ Furthermore, the State Associations commented that:
``Especially during this period of deep recession, if a station shows
the Commission (i) that its revenues are down substantially and that it
has had to cut expenses, including employee layoffs, furloughs, and
salary reductions in order to keep the station operating, or (ii) that
it has broken, or is close to breaking, loan covenants or is otherwise
in default of its financing, or (iii) that it is on the brink of some
form of foreclosure or bankruptcy, a waiver of the FY 2009 regulatory
fee payment requirement should be granted.'' \52\
---------------------------------------------------------------------------

\50\ State Associations at 6-7.
\51\ Id. at 7.
\52\ Id.
---------------------------------------------------------------------------

30. We decline to adopt the State Associations' proposals. In
establishing the regulatory fee program, the Commission recognized that
in certain instances payment of a regulatory fee may impose an undue
financial hardship upon a licensee. The Commission therefore decided to
grant waivers or reductions of its regulatory fees in those instances
where a ``petitioner presents a compelling case of financial
hardship.'' \53\ Under the current standard employed by the Commission,
regulatees can establish financial hardship by submitting:
``Information such as a balance sheet and profit and loss statement
(audited, if available), a cash flow projection * * * (with an
explanation of how calculated), a list of their officers and their
individual compensation, together with a list of their highest paid
employees, other than officers, and the amount of their compensation,
or similar information.'' \54\ The Commission also accepts as evidence
of financial hardship that licensees' stations are bankrupt, undergoing
Chapter 11 reorganization, or in receivership.\55\ Furthermore, the
Commission will accept evidence that a broadcast station is not
broadcasting (dark) as evidence of financial hardship.\56\ The current
financial hardship standards have proven useful as bright line tests
that can be administered predictably. The Commission does not intend to
change these standards at this time and notes that various groups of
licensees are impacted by the broader economy from year to year.
Modifying our financial hardship waiver standards to accommodate
fluctuating economic changes and a potentially limitless variety of
different financial showings would not assure that waivers are granted
predictably, fairly, and efficiently, and would therefore not be in the
public interest.
---------------------------------------------------------------------------

\53\ See Implementation of Section 9 of the Communications Act,
9 FCC Rcd 5333, 5346 (1994), recon. granted, 10 FCC Rcd 12759 (1995)
(Implementation of Section 9 Order).
\54\ Implementation of Section 9 Order, 10 FCC Rcd at 12762,
paragraph 13.
\55\ Id. at 12762, paragraph 14.
\56\ Id. at 12762, paragraph 15.
---------------------------------------------------------------------------

A. Public Notices and Fact Sheets

31. 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

[[Page 40094]]

this information on http://www.fcc.gov/fees/regfees.html, but as in
previous years we will not send out public notices and fact sheets to
regulatees en masse.

B. Assessment Notifications

1. Media Services Licensees
32. Beginning in FY 2003, we sent fee assessment notifications via
surface mail to media services entities on a per-facility basis.\57\
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.\58\ Consistent with procedures used last year, we will
continue our notification assessment initiative in FY 2009 and mail
media assessment notifications to licensees at their primary record of
contact populated in our Consolidated Database System (CDBS), and to a
secondary record of contact, if available. We again will 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 2009. We will also continue
to make the Commission-authorized web site available to licensees so
that they can update or correct any information regarding their
facilities and their fee-exempt status.\59\
---------------------------------------------------------------------------

\57\ As stated previously at footnote 42, 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.
\58\ 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.
\59\ 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). The Commission-authorized web site for media
services licensees is http://www.fccfees.com.
---------------------------------------------------------------------------

33. Although the Commission will continue to mail media assessment
notifications, licensees (including media services) will be required to
use Fee Filer as the first step to paying their regulatory fee
obligations. The notification assessments are primarily intended to
provide licensees with media data attributes and should not be
considered a substitute to using Fee Filer as the first step in filing
and paying regulatory fees. As explained previously in paragraphs 19
through 23, licensees must first log onto the Commission's Fee Filer
system to begin the process of filing and paying their regulatory fees,
but once in Fee Filer, licensees may pay by check or money order,
credit card, wire transfer, or by ACH. To pay by check, money order, or
wire transfer, licensees must log onto Fee Filer and generate a Form
159-E before mailing in their payment along with Form 159-E.
2. CMRS Cellular and Mobile Services Assessments
34. As we have done in prior years, we will continue to mail an
assessment letter to 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'').\60\ This letter will include a
listing of the carrier's Operating Company Numbers (OCNs) upon which
the assessment is based.\61\ The letters will not include OCNs with
their respective assigned number counts, but rather, an aggregate total
of assigned numbers for each carrier.
---------------------------------------------------------------------------

\60\ 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, paragraphs
38-44 (2005).
\61\ Id.
---------------------------------------------------------------------------

35. We will also continue our procedure of giving entities an
opportunity to revise their subscriber counts by sending an initial and
a final assessment letter. If the carrier does not agree with the
number of subscribers listed on the initial assessment letter, the
carrier can correct its subscriber count on the letter and return it by
the date specified in the assessment letter or by contacting the
Commission and stating a reason for the change (e.g., a purchase or
sale of a subsidiary), the date of the transaction, and any other
pertinent 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 the initial assessment letters and determine whether a
change in the number of subscribers is warranted. The final assessment
letter will inform carriers as to whether we have accepted their
revision in the number of subscribers.
36. Because some carriers do not file the NRUF report, they may not
receive a letter of assessment. In these instances, the carriers should
compute their fee payment using the standard methodology \62\ that is
currently in place for CMRS Wireless services (e.g., compute their
subscriber counts as of December 31, 2008), and submit their fee
payment accordingly. Whether a carrier receives an assessment letter or
not, the Commission reserves the right to audit the number of
subscribers for which regulatory fees are paid. 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.
---------------------------------------------------------------------------

\62\ See, e.g., Federal Communications Commission, Regulatory
Fees Fact Sheet: What You Owe--Commercial Wireless Services for FY
2008 at 1 (rel. Aug. 2008).
---------------------------------------------------------------------------

C. Streamlined Regulatory Fee Payment Process

1. Cable Television Subscribers
37. We will 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.
2. CMRS Cellular and Mobile Providers
38. 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.\63\ We will continue this practice in FY 2009. In
FY 2007, we consolidated the CMRS cellular and CMRS mobile fee
categories into one fee category and as one fee code, thereby
eliminating the requirement for CMRS

[[Page 40095]]

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 2009, we will continue
this practice of combining the CMRS cellular and CMRS mobile fee
categories into one regulatory fee category.
---------------------------------------------------------------------------

\63\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092,
8105, paragraph 48 (2006).
---------------------------------------------------------------------------

3. Interstate Telecommunications Service Providers (ITSP)
39. 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
performed in a consistent manner and eliminated processing issues that
occurred in prior years. In FY 2009, we will continue rounding lines 14
and 16 when calculating the FY 2009 ITSP fee obligation, but as
indicated earlier, we will not be mailing out Form 159-W via surface
mail.

D. Payment of Regulatory Fees

1. Lock Box Bank
40. All lock box payments to the Commission for FY 2009 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.
2. Receiving Bank for Wire Payments
41. The receiving bank for all wire payments is the Federal Reserve
Bank, New York, New York (TREAS NYC). When making a wire transfer,
regulatees must fax a copy of their Fee Filer generated Form 159-E 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/wiretran.html.
3. De Minimis Regulatory Fees
42. Regulatees whose total FY 2009 regulatory fee liability,
including all categories of fees for which payment is due, is less than
$10 are exempted from payment of FY 2009 regulatory fees.
4. Standard Fee Calculations and Payment Dates
43. The Commission will accept fee payments made in advance of the
window for the payment of regulatory fees. The responsibility for
payment of fees by service category is as follows:
Media Services: Regulatory fees must be paid for initial
construction permits (including construction permits for digital
television stations) that were granted on or before October 1, 2008 for
AM/FM radio stations, analog VHF/UHF full service television stations,
and satellite television stations. Regulatory fees must be paid for all
broadcast facility licenses granted on or before October 1, 2008. In
instances where a permit or license is transferred or assigned after
October 1, 2008, 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,
2008. In instances where a permit or license is transferred or assigned
after October 1, 2008, responsibility for payment rests with the holder
of the permit or license as of the fee due date. We note that audio
bridging service providers are included in this category.\64\
---------------------------------------------------------------------------

\64\ Audio bridging services are toll teleconferencing services,
and audio bridging service providers are required to contribute
directly to the universal service fund based on revenues from these
services. On June 30, 2008, the Commission released the InterCall
Order, in which the Commission stated that InterCall, Inc. and all
similarly situated audio bridging service providers are required to
contribute directly to the universal service fund. See Request for
Review by InterCall, Inc. of Decision of Universal Service
Administrator, CC Docket No. 96-45, Order, 23 FCC Rcd 10731 (2008)
(``InterCall Order'').
---------------------------------------------------------------------------

Wireless Services: CMRS cellular, mobile, and messaging
services (fees based on number of subscribers or telephone number
count): Regulatory fees must be paid for authorizations that were
granted on or before October 1, 2008. The number of subscribers, units,
or telephone numbers on December 31, 2008 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 Appendix C) pay ``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 fee 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 2009.
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,
2008.\65\ Regulatory fees also must be paid for CARS licenses that were
granted on or before October 1, 2008. In instances where a CARS license
is transferred or assigned after October 1, 2008, responsibility for
payment rests with the holder of the license as of the fee due date.
---------------------------------------------------------------------------

\65\ 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 2008, rather than on a count as of December 31,
2008.
---------------------------------------------------------------------------

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, 2008. In instances where a license
is transferred or assigned after October 1, 2008, responsibility for
payment rests with the holder of the license as of the fee due date.
Regulatory fees will be paid for international bearer circuits under
our newly adopted methodology pending a 90-day Congressional
notification for this permitted amendment; \66\ if for any reason the
methodology change is not instituted in FY 2009, the pre-FY 2009
methodology will be used to calculate FY 2009 bearer circuit regulatory
fees.
---------------------------------------------------------------------------

\66\ See Submarine Cable Order.
---------------------------------------------------------------------------

E. Enforcement

44. Regulatory fee payments must be received and stamped at the
lockbox bank by the last day of the regulatory fee filing window to be
considered timely. Section 9(c) of the Act requires us to impose an
additional charge as a penalty for late payment of any regulatory
fee.\67\ A late payment penalty of 25 percent of the unpaid 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 those set forth in Sec. 1.1910 of the Commission's rules
\68\ and in the Debt Collection Improvement

[[Page 40096]]

Act of 1996 (DCIA).\69\ 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 Sec.
1.1940(d) of the Commission's rules.\70\ 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.
---------------------------------------------------------------------------

\67\ 47 U.S.C. 159(c).
\68\ See 47 CFR 1.1910.
\69\ 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.
\70\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------

45. 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.\71\ 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).
---------------------------------------------------------------------------

\71\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
---------------------------------------------------------------------------

F. Final Regulatory Flexibility Analysis

46. As required by the Regulatory Flexibility Act of 1980
(RFA),\72\ the Commission has prepared a Final Regulatory Flexibility
Analysis (FRFA) relating to this Report and Order. The FRFA is set
forth in Appendix F.
---------------------------------------------------------------------------

\72\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (``SBREFA''), Public Law 104-121, Title II, 110 Stat. 847
(1996). The SBREFA was enacted as Title II of the Contract With
America Advancement Act of 1996 (CWAAA).
---------------------------------------------------------------------------

G. Congressional Review Act Analysis

47. The Commission will send a copy of this Report and Order in a
report to be sent to Congress and the Government Accountability Office,
pursuant to the Congressional Review Act.\73\
---------------------------------------------------------------------------

\73\ See 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is
contained in Title II, 251, of the CWAAA; see Public Law 104-121,
Title II, 251, 110 Stat. 868.
---------------------------------------------------------------------------

H. Final Paperwork Reduction Act Analysis

48. This Report and Order contains modified information collection
requirements subject to the Paperwork Reduction Act of 1995 (PRA),
Public Law 104-13. It will be submitted to the Office of Management and
Budget (OMB) for review under section 3507(d) of the PRA.\74\ Our
proposed new form for submarine cable operators is attached as Appendix
G. OMB and the general public will be afforded an opportunity to
comment on the modified information collection requirements contained
in this proceeding. In addition, we note that pursuant to the Small
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44
U.S.C. 3506(c)(4), we previously sought specific comment on how the
Commission might ``further reduce the information collection burden for
small business concerns with fewer than 25 employees.'' We received no
comment regarding such potential small business burdens.
---------------------------------------------------------------------------

\74\ 44 U.S.C. 3507(d).
---------------------------------------------------------------------------

IV. Ordering Clauses

49. 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 Report and Order is hereby
adopted.
50. It is further ordered that the FY 2009 section 9 regulatory fee
assessment requirements are adopted as specified herein.
51. It is further ordered that part 1 of the Commission's rules is
amended as set forth in the Rule Changes, and these rules shall become
effective September 10, 2009.
52. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Report and Order, including the Final Regulatory
Flexibility Analysis in Appendix F, to the Chief Counsel for Advocacy
of the U.S. Small Business Administration.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

List of Subjects in 47 CFR Part 1

Administrative practice and procedure.

Rule Changes

0
For the reasons discussed in the preamble, the Federal Communications
Commission amends 47 CFR part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j),
155, 157, 225, 303(r), and 309.

0
2. Section 1.1152 is revised to read as follows:

Sec. 1.1152 Schedule of annual regulatory fees and filing locations
for wireless radio services.

------------------------------------------------------------------------
Fee
Exclusive use services (per amount Address
license) \1\
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz and
220 MHz Local, Base Station &
SMRS) (47 CFR, Part 90)
(a) New, Renew/Mod (FCC 601 & $40.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 40.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 & 40.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(d) Renewal Only (Electronic 40.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.
220 MHz Nationwide
(a) New, Renew/Mod (FCC 601 & 40.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 40.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 & 40.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(d) Renewal Only (Electronic 40.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.
2. Microwave (47 CFR Pt. 101)
(Private)
(a) New, Renew/Mod (FCC 601 & 30.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 30.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.

[[Page 40097]]

(c) Renewal Only (FCC 601 & 30.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(d) Renewal Only (Electronic 30.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.
3. 218-219 MHz Service
(a) New, Renew/Mod (FCC 601 & 65.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 65.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 & 65.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000
(d) Renewal Only (Electronic 65.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.
4. Shared Use Services
Land Mobile (Frequencies Below
470 MHz--except 220 MHz)
(a) New, Renew/Mod (FCC 601 & 20.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 20.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 & 20.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(d) Renewal Only (Electronic 20.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.
General Mobile Radio Service
(a) New, Renew/Mod (FCC 605 & 5.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 5.00 FCC, P.O. Box 979097, St.
Filing) (FCC 605 & 159). Louis, MO 63197-9000.
(c) Renewal Only (FCC 605 & 5.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(d) Renewal Only (Electronic 5.00 FCC, P.O. Box 979097, St.
Filing) (FCC 605 & 159). Louis, MO 63197-9000.
Rural Radio (Part 22)
(a) New, Additional Facility, 20.00 FCC, P.O. Box 979097, St.
Major Renew/Mod (Electronic Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
(b) Renewal, Minor Renew/Mod 20.00 FCC, P.O. Box 979097, St.
(Electronic Filing) (FCC 601 Louis, MO 63197-9000.
& 159).
Marine Coast
(a) New, Renewal/Mod (FCC 601 45.00 FCC, P.O. Box 979097, St.
& 159). Louis, MO 63197-9000.
(b) New, Renewal/Mod 45.00 FCC, P.O. Box 979097, St.
(Electronic Filing) (FCC 601 Louis, MO 63197-9000.
& 159).
(c) Renewal Only (FCC 601 & 45.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(d) Renewal Only (Electronic 45.00 FCC, P.O. Box 979097, St.
Filing) (FCC 601 & 159). Louis, MO 63197-9000.
Aviation Ground
(a) New, Renewal/Mod (FCC 601 10.00 FCC, P.O. Box 979097, St.
& 159). Louis, MO 63197-9000.
(b) New, Renewal/Mod 10.00 FCC, P.O. Box 979097, St.
(Electronic Filing) (FCC 601 Louis, MO 63197-9000.
& 159).
(c) Renewal Only (FCC 601 & 10.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(d) Renewal Only (Electronic 10.00 FCC, P.O. Box 979097, St.
Only) (FCC 601 & 159). Louis, MO 63197-9000.
Marine Ship
(a) New, Renewal/Mod (FCC 605 10.00 FCC, P.O. Box 979097, St.
& 159). Louis, MO 63197-9000.
(b) New, Renewal/Mod 10.00 FCC, P.O. Box 979097, St.
(Electronic Filing) (FCC 605 Louis, MO 63197-9000.
& 159).
(c) Renewal Only (FCC 605 & 10.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(d) Renewal Only (Electronic 10.00 FCC, P.O. Box 979097, St.
Filing) (FCC 605 & 159). Louis, MO 63197-9000.
Aviation Aircraft
(a) New, Renew/Mod (FCC 605 & 5.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 5.00 FCC, P.O. Box 979097, St.
Filing) (FCC 605 & 159). Louis, MO 63197-9000.
(c) Renewal Only (FCC 605 & 5.00 FCC, P.O. Box 979097, St.
159). Louis, MO 63197-9000.
(d) Renewal Only (Electronic 5.00 FCC, P.O. Box 979097, St.
Filing) (FCC 605 & 159). Louis, MO 63197-9000.
5. Amateur Vanity Call Signs
(a) Initial or Renew (FCC 605 1.34 FCC, P.O. Box 979097, St.
& 159). Louis, MO 63197-9000.
(b) Initial or Renew 1.34 FCC, P.O. Box 979097, St.
(Electronic Filing) (FCC 605 Louis, MO 63197-9000.
& 159).
6. CMRS Cellular/Mobile Services
(per unit)
(FCC 159)..................... .18\2\ FCC, P.O. Box 979084, St.
Louis, MO 63197-9000.
7. CMRS Messaging Services (per
unit)
(FCC 159)..................... .08\3\ FCC, P.O. Box 979084, St.
Louis, MO 63197-9000.
8. Broadband Radio Service
(formerly MMDS and MDS)....... 320 FCC, P.O. Box 979084, St.
Louis, MO 63197-9000.
9. Local Multipoint Distribution 320 FCC, P.O. Box 979084, St.
Service Louis, MO 63197-9000.
------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire
license term. Therefore, the annual fee amount shown in this table
that is a small fee (categories 1 through 5) must be multiplied by the
5- or 10-year license term, as appropriate, to arrive at the total
amount of regulatory fees owed. It should be further noted that
application fees may also apply as detailed in Sec. 1.1102 of this
chapter.
\2\ These are standard fees that are to be paid in accordance with Sec.
1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with Sec.
1.1157(b) of this chapter.

0
3. Section 1.1153 is revised to read as follows:

Sec. 1.1153 Schedule of annual regulatory fees and filing locations
for mass media services.

------------------------------------------------------------------------

------------------------------------------------------------------------
1. AM Class A
<=25,000 population........... $675 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
25,001-75,000 population...... 1,350
75,001-150,000 population..... 2,025
150,001-500,000 population.... 3,050
500,001-1,200,000 population.. 4,400
1,200,001-3,000,000 population 6,750

[[Page 40098]]

>3,000,000 population......... 8,100
2. AM Class B
<=25,000 population........... 550 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
25,001-75,000 population...... 1,075
75,001-150,000 population..... 1,350
150,001-500,000 population.... 2,300
500,001-1,200,000 population.. 3,500
1,200,001-3,000,000 population 5,400
>3,000,000 population......... 6,475
3. AM Class C
<=25,000 population........... 500 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
25,001-75,000 population...... 750
75,001-150,000 population..... 1,000
150,001-500,000 population.... 1,500
500,001-1,200,000 population.. 2,500
1,200,001-3,000,000 population 3,750
>3,000,000 population......... 4,750
4. AM Class D
<=25,000 population........... 575 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
25,001-75,000 population...... 875
75,001-150,000 population..... 1,450
150,001-500,000 population.... 1,725
500,001-1,200,000 population.. 2,875
1,200,001-3,000,000 population 4,600
>3,000,000 population......... 5,750
5. AM Construction Permit......... 400 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
6. FM Classes A, B1 and C3
<=25,000 population........... 650 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
25,001-75,000 population...... 1,325
75,001-150,000 population..... 1,825
150,001-500,000 population.... 2,800
500,001-1,200,000 population.. 4,450
1,200,001-3,000,000 population 7,250
>3,000,000 population......... 9,250
7. FM Classes B, C, C0, C1 and C2
<=25,000 population........... 825 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
25,001-75,000 population...... 1,450
75,001-150,000 population..... 2,725
150,001-500,000 population.... 3,550
500,001-1,200,000 population.. 5,225
1,200,001-3,000,000 population 8,350
>3,000,000 population......... 10,850
8. FM Construction Permits........ 650 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
TV (47 CFR, Part 73) VHF
Commercial
1. Markets 1 thru 10.............. 77,575 FCC, TV Branch, P.O. Box
979084, St. Louis, MO
63197-9000.
2. Markets 11 thru 25............. 60,550
3. Markets 26 thru 50............. 37,575
4. Markets 51 thru 100............ 22,950
5. Remaining Markets.............. 5,950
6. Construction Permits........... 5,950
UHF Commercial
1. Markets 1 thru 10.............. 24,250 FCC, UHF Commercial, P.O.
Box 979084, St. Louis,
MO, 63197-9000.
2. Markets 11 thru 25............. 21,525
3. Markets 26 thru 50............. 13,350
4. Markets 51 thru 100............ 7,600
5. Remaining Markets.............. 1,950
6. Construction Permits........... 1,950
Satellite UHF/VHF Commercial
1. All Markets.................... 1,275 FCC Satellite TV P.O. Box
979084, St. Louis, MO
63197-9000.
2. Construction Permits........... 650
Low Power TV, Class A TV, TV/FM 400 FCC, Low Power, P.O. Box
Translator, & TV/FM Booster (47 979084, St. Louis, MO
CFR Part 74). 63197-9000.
Broadcast Auxiliary............... 10 FCC, Auxiliary, P.O. Box
979084, St. Louis, MO
63197-9000.
------------------------------------------------------------------------

0
4. Section 1.1154 is revised to read as follows:

Sec. 1.1154 Schedule of annual regulatory charges and filing
locations for common carrier services.

------------------------------------------------------------------------
Fee
amount Address
------------------------------------------------------------------------
Radio Facilities:

[[Page 40099]]

1. Microwave (Domestic Public $30.00 FCC, P.O. Box 979097, St.
Fixed) (Electronic Filing) Louis, MO 63197-9000.
(FCC Form 601 & 159).
Carriers:
1. Interstate Telephone .00342 FCC, Carriers, P.O. Box
Service Providers (per 979084, St. Louis, MO
interstate and international 63197-9000.
end-user revenues (see FCC
Form 499-A).
------------------------------------------------------------------------

0
5. Section 1.1155 is revised to read as follows:

Sec. 1.1155 Schedule of regulatory fees and filing locations for
cable television services.

------------------------------------------------------------------------
Fee
amount Address
------------------------------------------------------------------------
1. Cable Television Relay Service. $260 FCC, Cable, P.O. Box
979084, St. Louis, MO
63197-9000.
2. Cable TV System (per .88
subscriber).
------------------------------------------------------------------------

0
6. Section 1.1156 is revised to read as follows:

Sec. 1.1156 Schedule of regulatory fees and filing locations for
international services.

(a) The following schedule applies for the listed services:

------------------------------------------------------------------------
Fee
Fee category amount Address
------------------------------------------------------------------------
(1) Space Stations (Geostationary $127,175 FCC, International, P.O.
Orbit). Box 979084, St. Louis,
MO 63197-9000.
(2) Space Stations (Non- 137,225 FCC, International, P.O.
Geostationary Orbit). Box 979084, St. Louis,
MO 63197-9000.
(3) Earth Stations: Transmit/ 210 FCC, International, P.O.
Receive & Transmit only (per Box 979084, St. Louis,
authorization or registration). MO 63197-9000.
------------------------------------------------------------------------

(b) (1) International Terrestrial and Satellite. Regulatory fees
for International Bearer Circuits are to be paid by facilities-based
common carriers that have active (used or leased) international bearer
circuits as of December 31, of the prior year in any terrestrial or
satellite 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. ``Active circuits'' for
these purposes include backup and redundant circuits. In addition,
whether circuits are used specifically for voice or data is not
relevant in determining that they are active circuits.
(2) The fee amount, per active 64 KB circuit or equivalent will be
determined for each fiscal year. Payment, if mailed, shall be sent to:
FCC, International, P.O. Box 979084, St. Louis, MO 63197-9000.

------------------------------------------------------------------------
International terrestrial and
satellite (capacity as of Fee amount Address
December 31, 2008)
------------------------------------------------------------------------
Terrestrial Common Carrier, $0.75 per 64 KB FCC, International,
Satellite Common Carrier, Circuit. P.O. Box 979084, St.
Satellite Non-Common Carrier. Louis, MO 63197-
9000.
------------------------------------------------------------------------

(c) Submarine cable: Regulatory fees for submarine cable systems
will be paid annually, per cable landing license, for all submarine
cable systems operating as of December 31 of the prior year. The fee
amount will be determined by the Commission for each fiscal year.
Payment, if mailed, shall be sent to: FCC, International, P.O. Box
979084, St. Louis, MO 63197-9000.

------------------------------------------------------------------------
Submarine cable systems (capacity Fee
as of December 31) amount Address
------------------------------------------------------------------------
< 2.5 Gbps........................ $15,075 FCC, International, P.O.
Box 979084, St. Louis,
MO 63197-9000.
2.5 Gbps or greater, but less than 30,125 FCC, International, P.O.
5 Gbps. Box 979084, St. Louis,
MO 63197-9000.
5 Gbps or greater, but less than 60,250 FCC, International, P.O.
10 Gbps. Box 979084, St. Louis,
MO 63197-9000.
10 Gbps or greater, but less than 120,525 FCC, International, P.O.
20 Gbps. Box 979084, St. Louis,
MO 63197-9000.

[[Page 40100]]

20 Gbps or greater................ 241,025 FCC, International, P.O.
Box 979084, St. Louis,
MO 63197-9000.
------------------------------------------------------------------------

Note: The following appendixes will not appear in the Code of
Federal Regulations.

Appendix A

List of Commenters
------------------------------------------------------------------------
Commenter Abbreviated name
------------------------------------------------------------------------
American Association of Paging AAPC.
Carriers.
American Cable Association....... ACA.
AT&T, Inc........................ AT&T.
Bestel USA Inc., Hibernia Joint Commenters.
Atlantic US LLC, and Level 3
Communications, LLC.
Coalition of Canadian-Based Coalition.
Service Providers.
Independent Telephone and ITTA.
Telecommunications Alliance.
Sprint Nextel.................... Sprint.
Named State Broadcasters State Associations.
Associations.
United States Telecom Association USTelecom.
------------------------------------------------------------------------

List of Commenters--Reply Comments
------------------------------------------------------------------------
Commenter Abbreviated name
------------------------------------------------------------------------
AT&T, Inc........................ AT&T.
Verizon and Verizon Wireless..... Verizon.
------------------------------------------------------------------------

Appendix B

Calculation of FY 2009 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]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Computed
FY 2008 Pro-rated new FY Rounded new Expected FY
Fee category FY 2009 Years revenue FY 2009 2009 FY 2009 2009
payment units estimate revenue regulatory regulatory revenue
requirement fee fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)..................................... 1,200 10 460,000 501,932 42 40 480,000
PLMRS (Shared use)........................................ 11,500 10 2,300,000 2,509,659 22 20 2,300,000
Microwave................................................. 7,500 10 1,960,000 2,138,666 29 30 2,250,000
218-219 MHz (Formerly IVDS)............................... 3 10 1,800 1,964 65 65 1,950
Marine (Ship)............................................. 7,500 10 840,000 916,571 12 10 750,000
GMRS...................................................... 11,000 5 350,000 381,905 7 5 275,000
Aviation (Aircraft)....................................... 7,000 10 375,000 409,183 6 5 350,000
Marine (Coast)............................................ 275 10 108,500 118,390 43 45 123,750
Aviation (Ground)......................................... 1,500 10 170,000 185,497 12 10 150,000
Amateur Vanity Call Signs................................. 15,000 10 184,500 201,318 1.34 1.34 201,000
AM Class A................................................ 65 1 227,500 248,238 3,819 3,825 248,625
AM Class B................................................ 1,567 1 2,737,000 2,986,494 1,906 1,900 2,977,300
AM Class C................................................ 938 1 958,375 1,045,737 1,115 1,125 1,055,250
AM Class D................................................ 1,715 1 3,241,400 3,536,873 2,062 2,050 3,515,750
FM Classes A, B1 & C3..................................... 3,045 1 6,764,000 7,405,656 2,432 2,425 7,384,125
FM Classes B, C, C0, C1 & C2.............................. 3,051 1 8,292,175 9,073,132 2,974 2,975 9,076,725
AM Construction Permits................................... 107 1 39,425 43,019 402 400 42,800
FM Construction Permits \1\............................... 224 1 179,400 145,600 650 650 145,600
Satellite TV.............................................. 127 1 149,225 162,828 1,282 1,275 161,925
Satellite TV Construction Permit.......................... 3 1 1,785 1,948 649 650 1,950
VHF Markets 1-10.......................................... 42 1 2,984,100 3,257,932 77,570 77,575 3,258,150
VHF Markets 11-25......................................... 55 1 3,050,925 3,330,848 60,561 60,550 3,330,250
VHF Markets 26-50......................................... 75 1 2,581,425 2,818,550 37,581 37,575 2,818,125
VHF Markets 51-100........................................ 118 1 2,480,950 2,708,256 22,951 22,950 2,708,100
VHF Remaining Markets..................................... 200 1 1,092,000 1,191,542 5,958 5,950 1,190,000
VHF Construction Permits \1\.............................. 3 1 22,400 17,850 5,950 5,950 17,850
UHF Markets 1-10.......................................... 87 1 1,931,475 2,109,219 24,244 24,250 2,109,750
UHF Markets 11-25......................................... 81 1 1,596,950 1,744,200 21,533 21,525 1,743,525
UHF Markets 26-50......................................... 110 1 1,344,700 1,468,956 13,354 13,350 1,468,500
UHF Markets 51-100........................................ 164 1 1,142,400 1,247,604 7,607 7,600 1,246,400

[[Page 40101]]

UHF Remaining Markets..................................... 195 1 347,400 379,068 1,944 1,950 380,250
UHF Construction Permits \1\.............................. 15 1 32,400 29,250 1,950 1,950 29,250
Broadcast Auxiliaries..................................... 27,500 1 276,000 301,159 11 10 275,000
LPTV/Translators/Boosters/Class A TV...................... 3,450 1 1,277,500 1,393,952 404 400 1,380,000
CARS Stations............................................. 650 1 153,750 167,765 258 260 169,000
Cable TV Systems.......................................... 64,500,000 1 51,840,000 56,565,522 0.8769 0.88 56,760,000
Interstate Telecommunication Service Providers............ 46,800,000,000 1 146,638,000 160,004,920 0.0034189 0.00342 160,056,000
CMRS Mobile Services (Cellular/Public Mobile)............. 276,000,000 1 44,200,000 48,280,138 0.1749 0.180 49,680,000
CMRS Messag. Services..................................... 7,000,000 1 560,000 560,000 0.080 0.080 560,000
BRS \2\................................................... 1,725 1 501,500 552,000 320 320 552,000
LMDS...................................................... 335 1 98,825 107,200 320 320 107,200
Per 64 kbps Int'l Bearer Circuits Terrestrial (Common) & 1,482,372 1 8,137,500 1,106,700 0.747 0.75 1,111,779
Satellite (Common & Non-Common)
Submarine Cable Providers (see chart in Appendix C) \3\... 32.44 1 ............ 7,818,300 241,008 241,000 7,818,040
Earth Stations............................................ 4,050 1 780,000 851,102 210 210 850,500
Space Stations (Geostationary)............................ 87 1 10,140,500 11,064,866 127,182 127,175 11,064,225
Space Stations (Non-Geostationary......................... 6 1 754,500 823,277 137,213 137,225 823,350
---------------------------------------------------------------------------------------------
* * * Total Estimated Revenue to be Collected........ ............... ....... 313,305,285 341,814,783 ........... ........... 342,998,994
---------------------------------------------------------------------------------------------
* * * Total Revenue Requirement...................... ............... ....... 312,000,000 341,875,000 ........... ........... 341,875,000
---------------------------------------------------------------------------------------------
Difference............................................ ............... ....... 1,305,285 39,783 ........... ........... 1,123,994
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The FM Construction Permit revenues and the VHF and UHF Construction Permit revenues were adjusted to set the regulatory fee to an amount no higher
than the lowest licensed fee for that class of service. The reductions in the FM Construction Permit revenues are offset by increases in the revenue
totals for FM radio stations. Similarly, reductions in the VHF and UHF Construction Permit revenues are offset by increases in the revenue totals for
VHF and UHF television stations, respectively.
\2\ MDS/MMDS category was renamed Broadband Radio Service (BRS). 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, Report & Order
and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, paragraph 6 (2004).
\3\ The chart at the end of Appendix C lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from
the adoption of the following proceedings: Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order (MD Docket No.
08-65, RM-11312), released March 24, 2009; and Assessment and Collection of Regulatory Fees for Fiscal Year 2009 and Assessment and Collection of
Regulatory Fees for Fiscal Year 2008, Notice of Proposed Rulemaking and Order (MD Docket No. 09-65, MD Docket No. 08-65), released on May 14, 2009.

Appendix C

FY 2009 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]
------------------------------------------------------------------------
Annual
regulatory
Fee category fee (U.S.
$'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)....... 40
Microwave (per license) (47 CFR part 101).................. 30
218-219 MHz (Formerly Interactive Video Data Service) (per 65
license) (47 CFR part 95).................................
Marine (Ship) (per station) (47 CFR part 80)............... 10
Marine (Coast) (per license) (47 CFR part 80).............. 45
General Mobile Radio Service (per license) (47 CFR part 95) 5
Rural Radio (47 CFR part 22) (previously listed under the 20
Land Mobile category).....................................
PLMRS (Shared Use) (per license) (47 CFR part 90).......... 20
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 97). 1.34
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, .18
22, 24, 27, 80 and 90)....................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 .08
and 90)................................................... 320

[[Page 40102]]

Broadband Radio Service (formerly MMDS/MDS) (per license) 320
(47 CFR part 21)..........................................
Local Multipoint Distribution Service (per call sign) (47
CFR, part 101)............................................
AM Radio Construction Permits.............................. 400
FM Radio Construction Permits.............................. 650
TV (47 CFR part 73) VHF Commercial:
Markets 1-10........................................... 77,575
Markets 11-25.......................................... 60,550
Markets 26-50.......................................... 37,575
Markets 51-100......................................... 22,950
Remaining Markets...................................... 5,950
Construction Permits................................... 5,950
TV (47 CFR part 73) UHF Commercial:
Markets 1-10........................................... 24,250
Markets 11-25.......................................... 21,525
Markets 26-50.......................................... 13,350
Markets 51-100......................................... 7,600
Remaining Markets...................................... 1,950
Construction Permits................................... 1,950
Satellite Television Stations (All Markets)................ 1,275
Construction Permits--Satellite Television Stations........ 650
Low Power TV, Class A TV, TV/FM Translators & Boosters (47 400
CFR part 74)..............................................
Broadcast Auxiliaries (47 CFR part 74)..................... 10
CARS (47 CFR part 78)...................................... 260
Cable Television Systems (per subscriber) (47 CFR part 76). .88
Interstate Telecommunication Service Providers (per revenue .00342
dollar)...................................................
Earth Stations (47 CFR part 25)............................ 210
Space Stations (per operational station in geostationary 127,175
orbit) (47 CFR part 25) also includes DBS Service (per
operational station) (47 CFR part 100)....................
Space Stations (per operational system in non-geostationary 137,225
orbit) (47 CFR part 25)...................................
International Bearer Circuits--Terrestrial/Satellites (per .75
64KB circuit).............................................
International Bearer Circuits--Submarine Cable............. (\1\)
------------------------------------------------------------------------
\1\ See table below.

FY 2009 Schedule of Regulatory Fees (Continued)
----------------------------------------------------------------------------------------------------------------
FY 2009 Radio Station Regulatory Fees
-----------------------------------------------------------------------------------------------------------------
FM FM
AM class AM class AM class AM class classes classes
Population served A B C D A, B1 & B, C, C0,
C3 C1 & C2
----------------------------------------------------------------------------------------------------------------
<= 25,000..................................... $675 $550 $500 $575 $650 $825
25,001-75,000................................. 1,350 1,075 750 875 1,325 1,450
75,001-150,000................................ 2,025 1,350 1,000 1,450 1,825 2,725
150,001-500,000............................... 3,050 2,300 1,500 1,725 2,800 3,550
500,001-1,200,000............................. 4,400 3,500 2,500 2,875 4,450 5,225
1,200,001-3,000,00............................ 6,750 5,400 3,750 4,600 7,250 8,350
> 3,000,000................................... 8,100 6,475 4,750 5,750 9,250 10,850
----------------------------------------------------------------------------------------------------------------

FY 2009 Schedule of Regulatory Fees--International Bearer Circuits--
Submarine Cable
------------------------------------------------------------------------
Submarine cable systems
(capacity as of December 31, Fee amount Address
2008)
------------------------------------------------------------------------
< 2.5 Gbps..................... $15,075 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-9000.
2.5 Gbps or greater, but less 30,125 FCC, International,
than 5 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
5 Gbps or greater, but less 60,250 FCC, International,
than 10 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
10 Gbps or greater, but less 120,525 FCC, International,
than 20 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
20 Gbps or greater............. 241,025 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-9000.
------------------------------------------------------------------------

[[Page 40103]]

Appendix D

Sources of Payment Unit Estimates for FY 2009

In order to calculate individual service fees for FY 2009, we
adjusted FY 2008 payment units for each service to more accurately
reflect expected FY 2009 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 2009 estimates
with actual FY 2008 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 number of waivers
and/or exemptions that may occur in FY 2009 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 2009
payment units are based on FY 2008 actual payment units, it does not
necessarily mean that our FY 2009 projection is exactly the same
number as FY 2008. We have either rounded the FY 2009 number or
adjusted it slightly to account for these variables.

------------------------------------------------------------------------
Fee category Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, 218- Based on Wireless Telecommunications
219 MHz, Marine (Ship & Coast), Bureau (WTB) projections of new
Aviation (Aircraft & Ground), applications and renewals taking
GMRS, Amateur Vanity Call Signs, into consideration existing
Domestic Public Fixed. 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 08 payment data.
CMRS Messaging Services........... Based on WTB reports, and FY 08
payment data.
AM/FM Radio Stations.............. Based on CDBS data, adjusted for
exemptions, and actual FY 2008
payment units.
UHF/VHF Television Stations....... Based on CDBS data, adjusted for
exemptions, and actual FY 2008
payment units.
AM/FM/TV Construction Permits..... Based on CDBS data, adjusted for
exemptions, and actual FY 2008
payment units.
LPTV, Translators and Boosters, Based on CDBS data, adjusted for
Class A Television. exemptions, and actual FY 2008
payment units.
Broadcast Auxiliaries............. Based on actual FY 2008 payment
units.
BRS (formerly MDS/MMDS)........... Based on WTB reports and actual FY
LMDS.............................. 2008 payment units.
Based on WTB reports and actual FY
2008 payment units.
Cable Television Relay Service Based on data from Media Bureau's
(CARS) Stations. COALS data base and actual FY 2008
payment units.
Cable Television System Based on publicly available data
Subscribers. sources for estimated subscriber
counts and actual FY 2008 payment
units.
Interstate Telecommunication Based on FCC Form 499-Q data for the
Service Providers. four quarters of calendar year
2008, the Wireline Competition
Bureau projected the amount of
calendar year 2008 revenue that
will be reported on 2008 FCC Form
499-A worksheets in April 2009.
Earth Stations.................... Based on International Bureau (IB)
licensing data and actual FY 2008
payment units.
Space Stations (GSOs & NGSOs)..... Based on IB data reports and actual
FY 2008 payment units.
International Bearer Circuits..... Based on IB reports and submissions
by licensees.
Submarine Cable Licenses.......... Based on IB license information.
------------------------------------------------------------------------

Appendix 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 73.150 and 73.152 of the Commission's rules.\1\
Radiation values were calculated for each of 360 radials around the
transmitter site. Next, estimated soil conductivity data was
retrieved from a data base representing the information in FCC
Figure R3.\2\ 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 2,000 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.
---------------------------------------------------------------------------

\1\ 47 CFR 73.150 and 73.152.
\2\ See Map of Estimated Effective Ground Conductivity in the
United States, 47 CFR 73.190 Figure R3.
---------------------------------------------------------------------------

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.\3\ The resulting distance to
principal community contours were used to form a geographical
polygon. Population counting was accomplished by determining which
2,000 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.
---------------------------------------------------------------------------

\3\ 47 CFR 73.313.
---------------------------------------------------------------------------

Appendix F

Final Regulatory Flexibility Analysis

1. As required by the Regulatory Flexibility Act (RFA),\1\ the
Commission prepared an

[[Page 40104]]

Initial Regulatory Flexibility Analysis (IRFA) of the possible
significant economic impact on small entities by the policies and
rules proposed in its Notice of Proposed Rulemaking.\2\ Written
public comments were sought on the FY 2009 fees proposal, including
comments on the IRFA. This present Final Regulatory Flexibility
Analysis (FRFA) conforms to the RFA.\3\
---------------------------------------------------------------------------

\1\ 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).
\2\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2009, MD Docket No. 09-65, Notice of Proposed Rulemaking and
Order, (rel. May 14, 2009) (FY 2009 NPRM and Order).
\3\ 5 U.S.C. 604.
---------------------------------------------------------------------------

I. Need for, and Objectives of, the Report and Order

2. This rulemaking proceeding was initiated for the Commission
to amend its Schedule of Regulatory Fees in the amount of
$341,875,000, which is the amount that Congress has required the
Commission to recover. The Commission seeks to collect the necessary
amount through its revised Schedule of Regulatory Fees in the most
efficient manner possible and without undue public burden.

II. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA

3. No parties have raised issues in response to the IRFA.

III. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply

4. 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.\4\ The
RFA generally defines the term ``small entity'' as having the same
meaning as the terms ``small business,'' ``small organization,'' and
``small governmental jurisdiction.'' \5\ In addition, the term
``small business'' has the same meaning as the term ``small business
concern'' under the Small Business Act.\6\ 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.\7\
---------------------------------------------------------------------------

\4\ 5 U.S.C. 603(b)(3).
\5\ 5 U.S.C. 601(6).
\6\ 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.''
\7\ 15 U.S.C. 632.
---------------------------------------------------------------------------

5. Small Businesses. Nationwide, there are a total of
approximately 27.2 million small businesses, according to the
SBA.\8\
---------------------------------------------------------------------------

\8\ See SBA, Office of Advocacy, ``Frequently Asked Questions,''
http://web.sba.gov/faqs (accessed Jan. 2009).
---------------------------------------------------------------------------

6. Small Organizations. Nationwide, there are approximately 1.6
million small organizations.\9\
---------------------------------------------------------------------------

\9\ Independent Sector, The New Nonprofit Almanac & Desk
Reference (2002).
---------------------------------------------------------------------------

7. 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.'' \10\
Census Bureau data for 2002 indicate that there were 87,525 local
governmental jurisdictions in the United States.\11\ We estimate
that, of this total, 84,377 entities were ``small governmental
jurisdictions.'' \12\ Thus, we estimate that most governmental
jurisdictions are small.
---------------------------------------------------------------------------

\10\ 5 U.S.C. 601(5).
\11\ U.S. Census Bureau, Statistical Abstract of the United
States: 2006, Section 8, p. 272, Table 415.
\12\ 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.
---------------------------------------------------------------------------

8. 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.'' \13\ 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.\14\ 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.
---------------------------------------------------------------------------

\13\ 15 U.S.C. 632.
\14\ 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).
---------------------------------------------------------------------------

9. 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.\15\ According
to Commission data,\16\ 1,311 carriers have reported that they are
engaged in the provision of incumbent local exchange services. Of
these 1,311 carriers, an estimated 1,024 have 1,500 or fewer
employees and 287 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.
---------------------------------------------------------------------------

\15\ 13 CFR 121.201, North American Industry Classification
System (NAICS) code 517110.
\16\ FCC, Wireline Competition Bureau, Industry Analysis and
Technology Division, ``Trends in Telephone Service'' at Table 5.3,
Page 5-5 (Aug. 2008) (Trends in Telephone Service). This source uses
data that are current as of November 1, 2006.
---------------------------------------------------------------------------

10. 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.\17\ According to Commission data,\18\ 1005 carriers
have reported that they are engaged in the provision of either
competitive access provider services or competitive local exchange
carrier services. Of these 1005 carriers, an estimated 918 have
1,500 or fewer employees and 87 have more than 1,500 employees. In
addition, 16 carriers have reported that they are ``Shared-Tenant
Service Providers,'' and all 16 are estimated to have 1,500 or fewer
employees. In addition, 89 carriers have reported that they are
``Other Local Service Providers.'' Of the 89, all have 1,500 or
fewer 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.
---------------------------------------------------------------------------

\17\ 13 CFR 121.201, NAICS code 517110.
\18\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

11. 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.\19\ According to Commission data,\20\ 151 carriers
have reported that they are engaged in the provision of local resale
services. Of these, an estimated 149 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.
---------------------------------------------------------------------------

\19\ 13 CFR 121.201, NAICS code 517310.
\20\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

12. 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.\21\ According to Commission data,\22\ 815 carriers
have reported that they are engaged in the provision of toll resale
services. Of these, an estimated 787 have 1,500 or fewer employees
and 28 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.
---------------------------------------------------------------------------

\21\ 13 CFR 121.201, NAICS code 517310.
\22\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

13. 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

[[Page 40105]]

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.\23\ According to Commission data,\24\ 526 carriers
have reported that they are engaged in the provision of payphone
services. Of these, an estimated 524 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.
---------------------------------------------------------------------------

\23\ 3 CFR 121.201, NAICS code 517110.
\24\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

14. 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.\25\ According
to Commission data,\26\ 300 carriers have reported that they are
engaged in the provision of interexchange service. Of these, an
estimated 268 have 1,500 or fewer employees and 32 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.
---------------------------------------------------------------------------

\25\ 13 CFR 121.201, NAICS code 517110.
\26\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

15. 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.\27\ According
to Commission data,\28\ 28 carriers have reported that they are
engaged in the provision of operator services. Of these, an
estimated 27 have 1,500 or fewer employees and one has 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.
---------------------------------------------------------------------------

\27\ 13 CFR 121.201, NAICS code 517110.
\28\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

16. 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.\29\ According to Commission data,\30\ 88
carriers have reported that they are engaged in the provision of
prepaid calling cards. Of these, an estimated 85 have 1,500 or fewer
employees and three have 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.
---------------------------------------------------------------------------

\29\ 13 CFR 121.201, NAICS code 517310.
\30\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

17. 800 and 800-Like Service Subscribers.\31\ 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.\32\ 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.\33\
According to our data, at the end of December 2007, the number of
800 numbers assigned was 7,860,000; the number of 888 numbers
assigned was 5,210,184; the number of 877 numbers assigned was
4,388,682; and the number of 866 numbers assigned was 7,029,116. 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 7,860,000 or fewer small entity 800 subscribers;
5,210,184 or fewer small entity 888 subscribers; 4,388,682 or fewer
small entity 877 subscribers, and 7,029,116 or fewer entity 866
subscribers.
---------------------------------------------------------------------------

\31\ We include all toll-free number subscribers in this
category.
\32\ 13 CFR 121.201, NAICS code 517310.
\33\ ``Trends in Telephone Service'' at Tables 18.4, 18.5, 18.6,
and 18.7.
---------------------------------------------------------------------------

18. Satellite Telecommunications and All Other
Telecommunications. These two economic census categories address the
satellite industry. The first category has a small business size
standard of $15 million or less in average annual receipts, under
SBA rules.\34\ The second has a size standard of $25 million or less
in annual receipts.\35\ The most current Census Bureau data in this
context, however, are from the (last) economic census of 2002, and
we will use those figures to gauge the prevalence of small
businesses in these categories.\36\
---------------------------------------------------------------------------

\34\ 13 CFR 121.201, NAICS code 517410.
\35\ 13 CFR 121.201, NAICS code 517919.
\36\ 13 CFR 121.201, NAICS codes 517410 and 517910 (2002).
---------------------------------------------------------------------------

19. The category of Satellite Telecommunications ``comprises
establishments primarily engaged in providing 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.'' \37\ For this category, Census Bureau data for
2002 show that there were a total of 371 firms that operated for the
entire year.\38\ Of this total, 307 firms had annual receipts of
under $10 million, and 26 firms had receipts of $10 million to
$24,999,999.\39\ Consequently, we estimate that the majority of
Satellite Telecommunications firms are small entities that might be
affected by our action.
---------------------------------------------------------------------------

\37\ U.S. Census Bureau, 2007 NAICS Definitions, ``517410
Satellite Telecommunications''; http://www.census.gov/naics/2007/
def/ND517410.HTM.
\38\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 517410 (issued Nov. 2005).
\39\ Id. An additional 38 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------

20. The second category of All Other Telecommunications
comprises, inter alia, ``establishments primarily engaged in
providing specialized telecommunications services, such as satellite
tracking, communications telemetry, and radar station operation.
This industry also includes establishments primarily engaged in
providing satellite terminal stations and associated facilities
connected with one or more terrestrial systems and capable of
transmitting telecommunications to, and receiving telecommunications
from, satellite systems.'' \40\ For this category, Census Bureau
data for 2002 show that there were a total of 332 firms that
operated for the entire year.\41\ Of this total, 303 firms had
annual receipts of under $10 million and 15 firms had annual
receipts of $10 million to $24,999,999.\42\ Consequently, we
estimate that the majority of All Other Telecommunications firms are
small entities that might be affected by our action.
---------------------------------------------------------------------------

\40\ U.S. Census Bureau, 2007 NAICS Definitions, ``517919 All
Other Telecommunications''; http://www.census.gov/naics/2007/def/
ND517919.HTM#N517919.
\41\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 517910 (issued Nov. 2005).
\42\ Id. An additional 14 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------

21. Wireless Telecommunications Carriers (except Satellite).
This category includes cellular, PCS, and certain SMR. Since 2007,
the Census Bureau has placed wireless firms within this new, broad,
economic census category.\43\ Prior to that time, such firms were
within the now-superseded categories of ``Paging'' and ``Cellular
and Other Wireless Telecommunications.'' \44\ Under the present and
prior categories, the SBA has deemed a wireless business to be small
if it has 1,500 or fewer employees.\45\ Because Census Bureau data
are not yet available for the new category, we will estimate small
business prevalence using the prior categories and associated data.
For the category of Paging, data for 2002 show that there were 807
firms that operated for the entire year.\46\ Of this

[[Page 40106]]

total, 804 firms had employment of 999 or fewer employees, and three
firms had employment of 1,000 employees or more.\47\ For the
category of Cellular and Other Wireless Telecommunications, data for
2002 show that there were 1,397 firms that operated for the entire
year.\48\ Of this total, 1,378 firms had employment of 999 or fewer
employees, and 19 firms had employment of 1,000 employees or
more.\49\ Thus, we estimate that the majority of wireless firms are
small.
---------------------------------------------------------------------------

\43\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210
Wireless Telecommunications Categories (Except Satellite)''; http://
www.census.gov/naics/2007/def/ND517210.HTM#N517210.
\44\ U.S. Census Bureau, 2002 NAICS Definitions, ``517211
Paging''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.; U.S.
Census Bureau, 2002 NAICS Definitions, ``517212 Cellular and Other
Wireless Telecommunications''; http://www.census.gov/epcd/naics02/
def/NDEF517.HTM.
\45\ 13 CFR 121.201, NAICS code 517210 (2007 NAICS). The now-
superseded, pre-2007 CFR citations were 13 CFR 121.201, NAICS codes
517211 and 517212 (referring to the 2002 NAICS).
\46\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517211 (issued Nov. 2005).
\47\ 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.''
\48\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517212 (issued Nov. 2005).
\49\ 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 ``1,000
employees or more.''
---------------------------------------------------------------------------

22. Internet Service Providers. The 2007 Economic Census places
these providers, which includes voice over Internet protocol (VoIP)
providers, in the category of All Other Telecommunications.\50\ The
SBA small business size standard for such firms is: Those having
annual average receipts of $25 million or less.\51\ The most current
Census Bureau data on such entities, however, are the 2002 data for
the previous census category \52\ called Internet Service Providers.
The 2002 data show that there were 2,529 such firms that operated
for the entire year.\53\ Of those, 2,437 firms had annual receipts
of under $10 million, and an additional 47 firms had receipts of
between $10 million and $24,999,999.\54\ Consequently, we estimate
that the majority of ISP firms are small entities that may be
affected by our action.
---------------------------------------------------------------------------

\50\ U.S. Census Bureau, 2007 NAICS Definitions, ``517919 All
Other Telecommunications''; http://www.census.gov/naics/2007/def/
ND517919.HTM#N517919.
\51\ 13 CFR 121.201, NAICS code 517919 (updated for inflation in
2008).
\52\ U.S. Census Bureau, ``2002 NAICS Definitions: 518111
Internet Service Providers''; http://www.census.gov/epcd/naics02/
def/NDEF518.HTM.
\53\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 518111 (issued Nov. 2005).
\54\ An additional 45 firms had receipts of $25 million or more.
---------------------------------------------------------------------------

23. Common Carrier Paging. As noted, the SBA has developed a
small business size standard for Wireless Telecommunications
Carriers (except Satellite) firms within the broad economic census
categories of ``Cellular and Other Wireless Telecommunications.''
\55\ Since 2007, the Census Bureau has placed wireless firms within
this new, broad, economic census category.\56\ Prior to that time,
such firms were within the now-superseded categories of ``Paging''
and ``Cellular and Other Wireless Telecommunications.'' \57\ Under
the present and prior categories, the SBA has deemed a wireless
business to be small if it has 1,500 or fewer employees.\58\ Because
Census Bureau data are not yet available for the new category, we
will estimate small business prevalence using the prior categories
and associated data. For the category of Paging, data for 2002 show
that there were 807 firms that operated for the entire year.\59\ Of
this total, 804 firms had employment of 999 or fewer employees, and
three firms had employment of 1,000 employees or more.\60\ For the
category of Cellular and Other Wireless Telecommunications, data for
2002 show that there were 1,397 firms that operated for the entire
year.\61\ Of this total, 1,378 firms had employment of 999 or fewer
employees, and 19 firms had employment of 1,000 employees or
more.\62\ Thus, we estimate that the majority of wireless firms are
small.
---------------------------------------------------------------------------

\55\ 13 CFR 121.201, NAICS code 517212.
\56\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210
Wireless Telecommunications Categories (Except Satellite)''; http://
www.census.gov/naics/2007/def/ND517210.HTM#N517210.
\57\ U.S. Census Bureau, 2002 NAICS Definitions, ``517211
Paging''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM; U.S.
Census Bureau, 2002 NAICS Definitions, ``517212 Cellular and Other
Wireless Telecommunications''; http://www.census.gov/epcd/naics02/
def/NDEF517.HTM.
\58\ 13 CFR 121.201, NAICS code 517210 (2007 NAICS). The now-
superseded, pre-2007 CFR citations were 13 CFR 121.201, NAICS codes
517211 and 517212 (referring to the 2002 NAICS).
\59\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517211 (issued Nov. 2005).
\60\ 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 ``1,000
employees or more.''
\61\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517212 (issued Nov. 2005).
\62\ 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 ``1,000
employees or more.''
---------------------------------------------------------------------------

24. 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.\63\ 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.\64\ The SBA has approved this
definition.\65\ 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.\66\ Fifty-
seven companies claiming small business status won 440 licenses.\67\
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.\68\ 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.\69\
---------------------------------------------------------------------------

\63\ 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, paragraphs 98-107 (1999).
\64\ Paging Second Report and Order, 12 FCC Rcd at 2811,
paragraph 179.
\65\ 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).
\66\ See ``929 and 931 MHz Paging Auction Closes,'' Public
Notice, 15 FCC Rcd 4858 (WTB 2000).
\67\ See id.
\68\ See ``Lower and Upper Paging Band Auction Closes,'' Public
Notice, 16 FCC Rcd 21821 (WTB 2002).
\69\ See ``Lower and Upper Paging Bands Auction Closes,'' Public
Notice, 18 FCC Rcd 11154 (WTB 2003).
---------------------------------------------------------------------------

25. Currently, there are approximately 74,000 Common Carrier
Paging licenses. According to the most recent Trends in Telephone
Service, 281 carriers reported that they were engaged in the
provision of ``paging and messaging'' services.\70\ Of these, an
estimated 279 have 1,500 or fewer employees and two have more than
1,500 employees.\71\ We estimate that the majority of common carrier
paging providers would qualify as small entities under the SBA
definition.
---------------------------------------------------------------------------

\70\ ``Trends in Telephone Service'' at Table 5.3.
\71\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

26. 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 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.\72\ The SBA has approved these definitions.\73\ 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.
---------------------------------------------------------------------------

\72\ 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).
\73\ See Alvarez Letter 1998.
---------------------------------------------------------------------------

27. 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.
28. Wireless Telephony. Wireless telephony includes cellular,
personal communications services, and specialized mobile radio
telephony carriers. As noted, the SBA has developed a small business
size

[[Page 40107]]

standard for Wireless Telecommunications Carriers (except
Satellite).\74\ Under the SBA small business size standard, a
business is small if it has 1,500 or fewer employees.\75\ According
to Trends in Telephone Service data, 434 carriers reported that they
were engaged in wireless telephony.\76\ Of these, an estimated 222
have 1,500 or fewer employees and 212 have more than 1,500
employees.\77\ We have estimated that 222 of these are small under
the SBA small business size standard.
---------------------------------------------------------------------------

\74\ 13 CFR 121.201, NAICS code 517210.
\75\ Id.
\76\ ``Trends in Telephone Service'' at Table 5.3.
\77\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

29. 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.\78\ 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.\79\ These small business size standards, in the context of
broadband PCS auctions, have been approved by the SBA.\80\ 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.\81\ On March 23, 1999, the Commission reauctioned 155 C, D, E,
and F Block licenses; there were 113 small business winning
bidders.\82\
---------------------------------------------------------------------------

\78\ 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).
\79\ See PCS Report and Order, 11 FCC Rcd at 7852, para. 60.
\80\ See Alvarez Letter 1998.
\81\ FCC News, ``Broadband PCS, D, E and F Block Auction
Closes,'' No. 71744 (rel. Jan. 14, 1997).
\82\ See ``C, D, E, and F Block Broadband PCS Auction Closes,''
Public Notice, 14 FCC Rcd 6688 (WTB 1999).
---------------------------------------------------------------------------

30. 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.\83\ 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.\84\ 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.\85\ Of the 14 winning bidders, six were
designated entities.\86\
---------------------------------------------------------------------------

\83\ See ``C and F Block Broadband PCS Auction Closes; Winning
Bidders Announced,'' Public Notice, 16 FCC Rcd 2339 (2001).
\84\ See ``Broadband PCS Spectrum Auction Closes; Winning
Bidders Announced for Auction No. 58,'' Public Notice, 20 FCC Rcd
3703 (2005).
\85\ See ``Auction of Broadband PCS Spectrum Licenses Closes;
Winning Bidders Announced for Auction No. 71,'' Public Notice, 22
FCC Rcd 9247 (2007).
\86\ Id.
---------------------------------------------------------------------------

31. 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.\87\ Through these auctions, the
Commission awarded a total of 41 licenses, 11 of which were obtained
by four small businesses.\88\ 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.\89\ 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.\90\ 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.\91\ The SBA has approved these small business size
standards.\92\ 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.\93\ Three of these claimed
status as a small or very small entity and won 311 licenses.
---------------------------------------------------------------------------

\87\ 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).
\88\ 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).
\89\ 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).
\90\ Narrowband PCS Second Report and Order, 15 FCC Rcd at
10476, para. 40.
\91\ Id.
\92\ See Alvarez Letter 1998.
\93\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16
FCC Rcd 18663 (WTB 2001).
---------------------------------------------------------------------------

32. 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.\94\ 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.\95\ A ``very small business''
is defined as 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.\96\ 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.\97\ The SBA approved these
small size standards.\98\ 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.\99\ 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.\100\ 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.\101\ 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.
---------------------------------------------------------------------------

\94\ 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).
\95\ See Channels 52-59 Report and Order, 17 FCC Rcd at 1087-88,
paragraph 172.
\96\ See id.
\97\ See id., 17 FCC Rcd at 1088, paragraph 173.
\98\ See Letter from Aida Alvarez, Administrator, SBA, to
Thomas Sugrue, Chief, WTB, FCC (Aug. 10, 1999) (Alvarez Letter
1999).
\99\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
17 FCC Rcd 17272 (WTB 2002).
\100\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
18 FCC Rcd 11873 (WTB 2003).
\101\ See id.
---------------------------------------------------------------------------

33. The Commission recently reexamined its rules governing the
700 MHz band in the 700 MHz Second Report and Order.\102\ An

[[Page 40108]]

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.\103\
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).
---------------------------------------------------------------------------

\102\ 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).
\103\ 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).
---------------------------------------------------------------------------

34. 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.\104\ 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.
---------------------------------------------------------------------------

\104\ See id.
---------------------------------------------------------------------------

35. 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.\105\ 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.\106\ 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.\107\ SBA approval of
these definitions is not required.\108\ An auction of 52 Major
Economic Area (MEA) licenses commenced on September 6, 2000, and
closed on September 21, 2000.\109\ 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.\110\
---------------------------------------------------------------------------

\105\ 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).
\106\ See 746-764 MHz Band Second Report and Order, 15 FCC Rcd
at 5343, para. 108.
\107\ See id.
\108\ 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).
\109\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
\110\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------

36. 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.\111\ 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.\112\
The SBA has approved these small business size standards for the 900
MHz Service.\113\ 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.\114\ A second
auction for the 800 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.\115\
---------------------------------------------------------------------------

\111\ 47 CFR 90.814(b)(1).
\112\ 47 CFR 90.814(b)(1).
\113\ See Alvarez Letter 1999.
\114\ 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).
\115\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------

37. 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.\116\ 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.\117\ 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.
---------------------------------------------------------------------------

\116\ 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).
\117\ See, ``800 MHz SMR Service Lower 80 Channels Auction
Closes; Winning Bidders Announced,'' Public Notice, 16 FCC Rcd 1736
(2000).
---------------------------------------------------------------------------

38. 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. In addition, we do not know how many of these
firms have 1500 or fewer employees.\118\ 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.
---------------------------------------------------------------------------

\118\ See generally 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

39. 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
Wireless Telecommunications Carriers (except Satellite).\119\ This
category provides that a small business is a wireless company
employing no more than 1,500 persons.\120\ The Commission estimates
that most such licensees are small businesses under the SBA's small
business standard.
---------------------------------------------------------------------------

\119\ Id.
\120\ Id.
---------------------------------------------------------------------------

40. 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.\121\
This small business standard indicates that a ``small business'' is
an entity that, together

[[Page 40109]]

with its affiliates and controlling principals, has average gross
revenues not exceeding $15 million for the preceding three
years.\122\ 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.\123\ The SBA has approved these small size standards.\124\
Auctions of Phase II licenses commenced on September 15, 1998, and
closed on October 22, 1998.\125\ 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.\126\ 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.\127\ 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.\128\ The Commission conducted a fourth auction in 2007
with three of the five winning bidders claiming small or very small
business status.\129\
---------------------------------------------------------------------------

\121\ 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).
\122\ Id. at 11068, para. 291.
\123\ Id.
\124\ See Letter from Aida Alvarez, Administrator, SBA, to
Daniel Phythyon, Chief, WTB, FCC (Jan. 6, 1998) (Alvarez to Phythyon
Letter 1998).
\125\ See generally ``220 MHz Service Auction Closes,'' Public
Notice, 14 FCC Rcd 605 (1998).
\126\ 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).
\127\ See ``Phase II 220 MHz Service Spectrum Auction Closes,''
Public Notice, 14 FCC Rcd 11218 (1999).
\128\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (2002).
\129\ See ``Auction of Phase II 220 MHz Service Spectrum
Licenses Closes,'' Public Notice, 22 FCC Rcd 11573 (WTB 2007).
---------------------------------------------------------------------------

41. 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, Wireless
Telecommunications Carriers (except Satellite). This definition
provides that a small entity is any such entity employing no more
than 1,500 persons.\130\ 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.\131\
---------------------------------------------------------------------------

\130\ See 13 CFR 121.201, NAICS code 517210.
\131\ See generally 13 CFR 121.201.
---------------------------------------------------------------------------

42. The Commission's 1994 Annual Report on PLMRs \132\ 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.
---------------------------------------------------------------------------

\132\ Federal Communications Commission, 60th Annual Report,
Fiscal Year 1994, at paragraph 116.
---------------------------------------------------------------------------

43. Fixed Microwave Services. Fixed microwave services include
common carrier,\133\ private operational-fixed,\134\ and broadcast
auxiliary radio services.\135\ 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 Wireless
Telecommunications Carriers (except Satellite), which is 1,500 or
fewer employees.\136\ 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.
---------------------------------------------------------------------------

\133\ See 47 CFR 101 et seq. for common carrier fixed microwave
services (except Multipoint Distribution Service).
\134\ 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.
\135\ 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.
\136\ 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

44. 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.\137\ 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.\138\ The SBA has approved these small business size
standards.\139\ 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.
---------------------------------------------------------------------------

\137\ 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).
\138\ Id.
\139\ 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).
---------------------------------------------------------------------------

45. 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.\140\ 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.\141\ 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.\142\ The SBA has approved these small business size standards
in the context of LMDS auctions.\143\ 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.
---------------------------------------------------------------------------

\140\ 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, paragraph 348 (1997) (LMDS Second Report and
Order).
\141\ See LMDS Second Report and Order, 12 FCC Rcd at 12689-90,
paragraph 348.
\142\ See id.
\143\ See Alvarez to Phythyon Letter 1998.
---------------------------------------------------------------------------

46. 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).\144\ Of the 594 licenses, 567
were won by 167 entities qualifying as a small business. For that
auction, the Commission defined a small

[[Page 40110]]

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.\145\ 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.\146\ 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.\147\ The SBA has
approved of these definitions.\148\ 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.
---------------------------------------------------------------------------

\144\ See ``Interactive Video and Data Service (IVDS)
Applications Accepted for Filing,'' Public Notice, 9 FCC Rcd 6227
(1994).
\145\ Implementation of Section 309(j) of the Communications
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330
(1994).
\146\ 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).
\147\ Id.
\148\ See Alvarez to Phythyon Letter 1998.
---------------------------------------------------------------------------

47. 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.\149\ 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.\150\ These definitions have been approved by
the SBA.\151\ An auction for LMS licenses commenced on February 23,
1999, and closed on March 5, 1999. Of the 528 licenses auctioned,
289 licenses were sold to four small businesses.
---------------------------------------------------------------------------

\149\ 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, paragraph 20 (1998) (Automatic
Vehicle Monitoring Systems Second Report and Order); see also 47 CFR
90.1103.
\150\ Automatic Vehicle Monitoring Systems Second Report and
Order, 13 FCC Rcd at 15192, para. 20; see also 47 CFR 90.1103.
\151\ See Alvarez Letter 1998.
---------------------------------------------------------------------------

48. Rural Radiotelephone Service. The Commission has not adopted
a size standard for small businesses specific to the Rural
Radiotelephone Service.\152\ A significant subset of the Rural
Radiotelephone Service is the Basic Exchange Telephone Radio System
(BETRS).\153\ In the present context, we will use the SBA's small
business size standard applicable to Wireless Telecommunications
Carriers (except Satellite), i.e., an entity employing no more than
1,500 persons.\154\ 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.
---------------------------------------------------------------------------

\152\ The service is defined in section 22.99 of the
Commission's rules, 47 CFR 22.99.
\153\ BETRS is defined in 22.757 and 22.759 of the Commission's
rules, 47 CFR 22.757 and 22.759.
\154\ 13 CFR 121.201, NAICS code 517210.
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49. Air-Ground Radiotelephone Service.\155\ The Commission has
previously used the SBA's small business definition applicable to
Wireless Telecommunications Carriers (except Satellite), i.e., an
entity employing no more than 1,500 persons.\156\ 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.\157\ 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.\158\ These
definitions were approved by the SBA.\159\ 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.
---------------------------------------------------------------------------

\155\ The service is defined in section 22.99 of the
Commission's rules, 47 CFR 22.99.
\156\ 13 CFR 121.201, NAICS codes 517210.
\157\ 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, paragraphs 28-42 (2005).
\158\ Id.
\159\ 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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50. Aviation and Marine Radio Services. There are approximately
26,162 aviation, 34,555 marine (ship), and 3,296 marine (coast)
licensees.\160\ 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 Wireless Telecommunications Carriers (except
Satellite), which is 1,500 or fewer employees.\161\ 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.\162\ 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 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.\163\ Further, the Commission made available
Automated Maritime Telecommunications System (AMTS) licenses in
Auctions 57 and 61.\164\ 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.\165\ 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.
---------------------------------------------------------------------------

\160\ 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).
\161\ 13 CFR 121.201, NAICS code 517210.
\162\ A licensee may have a license in more than one category.
\163\ 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).
\164\ 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).
\165\ 47 CFR 80.1252.
---------------------------------------------------------------------------

51. 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.\166\ 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

[[Page 40111]]

business size standard for Wireless Telecommunications Carriers
(except Satellite) services.\167\ Under that SBA small business size
standard, a business is small if it has 1,500 or fewer
employees.\168\
---------------------------------------------------------------------------

\166\ This service is governed by Subpart I of Part 22 of the
Commission's rules. See 47 CFR 22.1001-22.1037.
\167\ 13 CFR 121.201, NAICS code 517210.
\168\ Id.
---------------------------------------------------------------------------

52. 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.\169\ ``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.\170\ The SBA has approved of these definitions.\171\
The majority of these entities will most likely be licensed in bands
where the Commission has 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.\172\ 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.
---------------------------------------------------------------------------

\169\ See Amendment of the Commission's Rules Regarding Multiple
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008,
paragraph 123 (2000).
\170\ Id.
\171\ See Alvarez Letter 1999.
\172\ See ``Multiple Address Systems Spectrum Auction Closes,''
Public Notice, 16 FCC Rcd 21011 (2001).
---------------------------------------------------------------------------

53. 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 Wireless Telecommunications Carriers
(except Satellite). This definition provides that a small entity is
any such entity employing no more than 1,500 persons.\173\ 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.
---------------------------------------------------------------------------

\173\ See 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

54. 1.4 GHz Band Licensees. The Commission conducted an auction
of 64 1.4 GHz band licenses, beginning on February 7, 2007,\174\ and
closing on March 8, 2007.\175\ 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.\176\ Neither of the two winning bidders
sought designated entity status.\177\
---------------------------------------------------------------------------

\174\ See ``Auction of 1.4 GHz Bands Licenses Scheduled for
February 7, 2007,'' Public Notice, 21 FCC Rcd 12393 (WTB 2006).
\175\ 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).
\176\ Auction No. 69 Closing PN, Attachment C.
\177\ See Auction No. 69 Closing PN.
---------------------------------------------------------------------------

55. 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
Wireless Telecommunications Carriers (except Satellite). This
category provides that such a company is small if it employs no more
than 1,500 persons.\178\ The 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 \179\ 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.
---------------------------------------------------------------------------

\178\ 13 CFR 121.201, NAICS code 517210.
\179\ 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.
---------------------------------------------------------------------------

56. 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.\180\ ``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.\181\ The SBA has approved
these definitions.\182\ The Commission will not know how many
licensees will be small or very small businesses until the auction,
if required, is held.
---------------------------------------------------------------------------

\180\ 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, paragraph 77 (2000) (24 GHz Report and Order); see
also 47 CFR 101.538(a)(2).
\181\ 24 GHz Report and Order, 15 FCC Rcd at 16967, para. 77;
see also 47 CFR 101.538(a)(1).
\182\ 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).
---------------------------------------------------------------------------

57. 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)).\183\ In connection with the 1996
BRS auction, the Commission established a small business size
standard as an entity that had annual average gross revenues of no
more than $40 million in the previous three calendar years.\184\ 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.\185\ 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.
---------------------------------------------------------------------------

\183\ 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, paragraph 7 (1995) (MDS
Auction R&O).
\184\ 47 CFR 21.961(b)(1).
\185\ 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.
---------------------------------------------------------------------------

58. In addition, the SBA's Cable Television Distribution
Services 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.\186\ Thus, we estimate
that at least 1,932 licensees are small businesses. Since 2007,
Cable Television Distribution Services have been defined within the
broad economic

[[Page 40112]]

census category of Wired Telecommunications Carriers; that category
is defined as follows: ``This industry comprises establishments
primarily engaged in operating and/or providing access to
transmission facilities and infrastructure that they own and/or
lease for the transmission of voice, data, text, sound, and video
using wired telecommunications networks. Transmission facilities may
be based on a single technology or a combination of technologies.''
\187\ The SBA has developed a small business size standard for this
category, which is: all such firms having 1,500 or fewer employees.
To gauge small business prevalence for these cable services we must,
however, use current census data that are based on the previous
category of Cable and Other Program Distribution and its associated
size standard; that size standard was: All such firms having $13.5
million or less in annual receipts.\188\ According to Census Bureau
data for 2002, there were a total of 1,191 firms in this previous
category that operated for the entire year.\189\ 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.\190\
Thus, the majority of these firms can be considered small.
---------------------------------------------------------------------------

\186\ 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.
\187\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition); http://
www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\188\ 13 CFR 121.201, NAICS code 517110.
\189\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510 (issued November 2005).
\190\ Id. An additional 61 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------

59. Television Broadcasting. This Economic Census category
``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.'' \191\ The SBA has created
the following small business size standard for Television
Broadcasting firms: those having $14 million or less in annual
receipts.\192\ The Commission has estimated the number of licensed
commercial television stations to be 1,379.\193\ In addition,
according to Commission staff review of the BIA Publications, Inc.,
Master Access Television Analyzer Database (BIA) on March 30, 2007,
about 986 of an estimated 1,374 commercial television stations (or
approximately 72 percent) had revenues of $13 million or less.\194\
We therefore estimate that the majority of commercial television
broadcasters are small entities.
---------------------------------------------------------------------------

\191\ U.S. Census Bureau, 2007 NAICS Definitions, ``515120
Television Broadcasting'' (partial definition); http://
www.census.gov/naics/2007/def/ND515120.HTM#N515120.
\192\ 13 CFR 121.201, NAICS code 515120 (updated for inflation
in 2008).
\193\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2007,'' dated March 18, 2008; http://www.fcc.gov/
Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
\194\ We recognize that BIA's estimate differs slightly from the
FCC total given supra.
---------------------------------------------------------------------------

60. We note, however, that in assessing whether a business
concern qualifies as small under the above definition, business
(control) affiliations \195\ 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. 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 does not exclude any
television station from the definition of a small business on this
basis and is therefore possibly over-inclusive to that extent.
---------------------------------------------------------------------------

\195\ ``[Business 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 21.103(a)(1).
---------------------------------------------------------------------------

61. In addition, the Commission has estimated the number of
licensed noncommercial educational (NCE) television stations to be
380.\196\ These stations are nonprofit, and therefore considered to
be small entities.\197\
---------------------------------------------------------------------------

\196\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2007,'' dated March 18, 2008; http://www.fcc.gov/
Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
\197\ See generally 5 U.S.C. 601(4), (6).
---------------------------------------------------------------------------

62. In addition, there are also 2,295 low power television
stations (LPTV).\198\ 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.
---------------------------------------------------------------------------

\198\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2007,'' dated March 18, 2008; http://www.fcc.gov/
Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
---------------------------------------------------------------------------

63. Radio Broadcasting. This Economic Census category
``comprises establishments primarily engaged in broadcasting aural
programs by radio to the public. Programming may originate in their
own studio, from an affiliated network, or from external sources.''
\199\ The SBA has established a small business size standard for
this category, which is: Such firms having $7 million or less in
annual receipts.\200\ According to Commission staff review of BIA
Publications, Inc.'s Master Access Radio Analyzer Database on March
31, 2005, about 10,840 (95%) of 11,410 commercial radio stations had
revenues of $6 million or less. Therefore, the majority of such
entities are small entities.
---------------------------------------------------------------------------

\199\ U.S. Census Bureau, 2007 NAICS Definitions, ``515112 Radio
Stations''; http://www.census.gov/naics/2007/def/
ND515112.HTM#N515112.
\200\ 13 CFR 121.201, NAICS code 515112 (updated for inflation
in 2008).
---------------------------------------------------------------------------

64. We note, however, that in assessing whether a business
concern qualifies as small under the above size standard, business
affiliations must be included.\201\ In addition, to be determined to
be a ``small business,'' the entity may not be dominant in its field
of operation.\202\ We note that it is difficult at times to assess
these criteria in the context of media entities, and our estimate of
small businesses may therefore be over-inclusive.
---------------------------------------------------------------------------

\201\ ``Concerns and entities are affiliates of each other when
one controls or has the power to control the other, or a third party
or parties controls or has the power to control both. It does not
matter whether control is exercised, so long as the power to control
exists.'' 13 CFR 121.103(a)(1) (an SBA regulation).
\202\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------

65. 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.\203\
---------------------------------------------------------------------------

\203\ 13 CFR 121.201, NAICS codes 515112 and 515120.
---------------------------------------------------------------------------

66. The Commission estimates that there are approximately 5,618
FM translators and boosters.\204\ 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 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
($7.0 million for a radio station or $14.0 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.\205\
---------------------------------------------------------------------------

\204\ See supra note 242.
\205\ See 15 U.S.C. 632.
---------------------------------------------------------------------------

67. Cable Television Distribution Services. Since 2007, these
services have been defined within the broad economic census category
of Wired Telecommunications Carriers; that category is defined as
follows: ``This industry comprises establishments primarily engaged
in operating and/or providing access to transmission facilities and
infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired telecommunications
networks. Transmission facilities may be based on a single
technology or a combination of technologies.'' \206\ The SBA has
developed a small business size standard for this category, which
is: All such firms having 1,500 or fewer employees. To gauge small
business prevalence for these cable services we must, however, use
current census data that are based on the previous category of Cable
and Other Program Distribution and its associated size standard;
that size standard was: All such firms having $13.5 million or less
in

[[Page 40113]]

annual receipts.\207\ According to Census Bureau data for 2002,
there were a total of 1,191 firms in this previous category that
operated for the entire year.\208\ 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.\209\ Thus, the
majority of these firms can be considered small.
---------------------------------------------------------------------------

\206\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition); http://
www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\207\ 13 CFR 121.201, NAICS code 517110.
\208\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510 (issued November 2005).
\209\ Id. An additional 61 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------

68. 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.\210\ Industry data indicate that, of 1,076 cable
operators nationwide, all but eleven are small under this size
standard.\211\ In addition, under the Commission's rules, a ``small
system'' is a cable system serving 15,000 or fewer subscribers.\212\
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.\213\ Thus, under this second size
standard, most cable systems are small.
---------------------------------------------------------------------------

\210\ 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).
\211\ 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.
\212\ 47 CFR 76.901(c).
\213\ Warren Communications News, Television & Cable Factbook
2006, ``U.S. Cable Systems by Subscriber Size,'' page F-2 (data
current as of Oct. 2005). The data do not include 718 systems for
which classifying data were not available.
---------------------------------------------------------------------------

69. 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.'' \214\ 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.\215\ Industry data indicate that, of 1,076 cable
operators nationwide, all but ten are small under this size
standard.\216\ 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,\217\ and therefore we are unable to estimate more
accurately the number of cable system operators that would qualify
as small under this size standard.
---------------------------------------------------------------------------

\214\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
\215\ 47 CFR 76.901(f); see Public Notice, FCC Announces New
Subscriber Count for the Definition of Small Cable Operator, DA 01-
158 (Cable Services Bureau, Jan. 24, 2001).
\216\ 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.
\217\ 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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70. Open Video Systems. The open video system (OVS) framework
was established in 1996, and is one of four statutorily recognized
options for the provision of video programming services by local
exchange carriers.\218\ The OVS framework provides opportunities for
the distribution of video programming other than through cable
systems. Because OVS operators provide subscription services,\219\
OVS falls within the SBA small business size standard covering cable
services, which is ``Wired Telecommunications Carriers.'' \220\ The
SBA has developed a small business size standard for this category,
which is: All such firms having 1,500 or fewer employees. To gauge
small business prevalence for such services we must, however, use
current census data that are based on the previous category of Cable
and Other Program Distribution and its associated size standard;
that size standard was: All such firms having $13.5 million or less
in annual receipts.\221\ According to Census Bureau data for 2002,
there were a total of 1,191 firms in this previous category that
operated for the entire year.\222\ 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.\223\ Thus, the
majority of cable firms can be considered small. In addition, we
note that the Commission has certified some OVS operators, with some
now providing service.\224\ Broadband service providers (BSPs) are
currently the only significant holders of OVS certifications or
local OVS franchises.\225\ The Commission does not have financial or
employment information regarding the entities authorized to provide
OVS, some of which may not yet be operational. Thus, again, at least
some of the OVS operators may qualify as small entities.
---------------------------------------------------------------------------

\218\ 47 U.S.C. 571(a)(3)-(4). See Annual Assessment of the
Status of Competition in the Market for the Delivery of Video
Programming, Thirteenth Annual Report, 24 FCC Rcd 542, 606 paragraph
135 (2009) (``Thirteenth Annual Cable Competition Report'').
\219\ See 47 U.S.C. 573.
\220\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers''; http://www.census.gov/naics/2007/def/
ND517110.HTM#N517110.
\221\ 13 CFR 121.201, NAICS code 517110.
\222\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510 (issued November 2005).
\223\ Id. An additional 61 firms had annual receipts of $25
million or more.
\224\ A list of OVS certifications may be found at http://
www.fcc.gov/mb/ovs/csovscer.html.
\225\ See Thirteenth Annual Cable Competition Report, 24 FCC Rcd
at 606-07 paragraph 135. BSPs are newer firms that are building
state-of-the-art, facilities-based networks to provide video, voice,
and data services over a single network.
---------------------------------------------------------------------------

71. Cable Television Relay Service. This service includes
transmitters generally used to relay cable programming within cable
television system distribution systems. This cable service is
defined within the broad economic census category of Wired
Telecommunications Carriers; that category is defined as follows:
``This industry comprises establishments primarily engaged in
operating and/or providing access to transmission facilities and
infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired telecommunications
networks. Transmission facilities may be based on a single
technology or a combination of technologies.'' \226\ The SBA has
developed a small business size standard for this category, which
is: All such firms having 1,500 or fewer employees. To gauge small
business prevalence for cable services we must, however, use current
census data that are based on the previous category of Cable and
Other Program Distribution and its associated size standard; that
size standard was: All such firms having $13.5 million or less in
annual receipts.\227\ According to Census Bureau data for 2002,
there were a total of 1,191 firms in this previous category that
operated for the entire year.\228\ 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.\229\ Thus, the
majority of these firms can be considered small.
---------------------------------------------------------------------------

\226\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition); http://
www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\227\ 13 CFR 121.201, NAICS code 517110.
\228\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510 (issued November 2005).
\229\ Id. An additional 61 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------

72. 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 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.\230\

[[Page 40114]]

These definitions were approved by the SBA.\231\ 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.\232\ 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.\233\
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\230\ 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 Licensees 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, paragraph 252 (2002).
\231\ 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).
\232\ See ``Multichannel Video Distribution and Data Service
Auction Closes,'' Public Notice, 19 FCC Rcd 1834 (2004).
\233\ 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).
---------------------------------------------------------------------------

73. Amateur Radio Service. These licensees are held by
individuals in a noncommercial capacity; these licensees are not
small entities.
74. 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 Wireless Telecommunications
Carriers (except Satellite), which is 1,500 or fewer employees.\234\
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.\235\ 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.
---------------------------------------------------------------------------

\234\ 13 CFR 121.201, NAICS code 517210.
\235\ Amendment of the Commission's Rules Concerning Maritime
Communications, Third Report and Order and Memorandum Opinion and
Order, 13 FCC Rcd 19853 (1998).
---------------------------------------------------------------------------

75. 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.\236\ 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).\237\ 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
Wireless Telecommunications Carriers (except Satellite), pursuant to
which a small entity is defined as employing 1,500 or fewer
persons.\238\ 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.
---------------------------------------------------------------------------

\236\ 47 CFR Part 90.
\237\ 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.
\238\ 13 CFR 121.201, NAICS Code 517210.
---------------------------------------------------------------------------

76. Public Safety Radio Services. Public Safety radio services
include police, fire, local government, forestry conservation,
highway maintenance, and emergency medical services.\239\ There are
a total of approximately 127,540 licensees in these services.
Governmental entities \240\ 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.\241\
---------------------------------------------------------------------------

\239\ 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 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 provide highway maintenance service and
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.
\240\ 47 CFR 1.1162.
\241\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

IV. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements

77. 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.\242\ Interstate telephone

[[Page 40115]]

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.
---------------------------------------------------------------------------

\242\ 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.
---------------------------------------------------------------------------

78. As discussed previously in the accompanying Order at
paragraphs 19 through 23, the Commission has concluded that
beginning in the FY 2009 regulatory fee cycle, licensees filing
their annual regulatory fee payments must begin the process by
entering the Commission's Fee Filer system with a valid FRN and
password. In some instances, it will be necessary to use a specific
FRN and password that is linked to a particular regulatory fee bill.
Going forward, the submission of hardcopy Form 159 documents will
not be permitted for making a regulatory fee payment. By requiring
licensees to use Fee Filer to begin the regulatory fee payment
process, errors resulting from illegible handwriting on hardcopy
Form 159's will be reduced, and we will create an electronic record
of licensee payment attributes that are more easily traced than
those payments that are simply mailed in with a hardcopy Form 159.
79. 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.\243\ If payment is not received, new
or pending applications may be dismissed, and existing
authorizations may be subject to rescission.\244\ 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.\245\ 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.\246\
---------------------------------------------------------------------------

\243\ 47 CFR 1.1164.
\244\ 47 CFR 1.1164(c).
\245\ Public Law 104-134, 110 Stat. 1321 (1996).
\246\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

80. 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.\247\
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.
---------------------------------------------------------------------------

\247\ 47 CFR 1.1166.
---------------------------------------------------------------------------

V. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered

81. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its 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.\248\ In the NPRM, we 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. We received no
comments specifically in response to the IRFA.
---------------------------------------------------------------------------

\248\ 5 U.S.C. 603.
---------------------------------------------------------------------------

82. 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. We note that small entities should be assisted by our
implementation of the Fee Filer program, and that we have continued
our practice of exempting fees whose total sum owed is less than
$10.00.

VI. Report to Congress

83. The Commission will send a copy of this Report and Order,
including this FRFA, in a report to be sent to Congress and the
Government Accountability Office pursuant to the Congressional
Review Act.\249\. In addition, the Commission will send a copy of
this Report and Order, including the FRFA, to the Chief Counsel for
Advocacy of the Small Business Administration. A copy of this Report
and Order and FRFA (or summaries thereof) will also be published in
the Federal Register.\250\
---------------------------------------------------------------------------

\249\ See 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is
contained in Title II, section 251, of the CWAAA; see Public Law
104-121, Title II, section 251, 110 Stat. 868.
\250\ See 5 U.S.C. 604(b).
---------------------------------------------------------------------------

Appendix G

Proposed Letter to Submarine Cable Operators

[insert address of submarine cable operator]

Re:/Regulatory Fees for Fiscal Year [insert year]

Our annual regulatory fee assessment for submarine cable
operators is based on the total capacity for the submarine cable
system. For this reason, we require submarine cable operators to
advise us of the appropriate category for determining regulatory
fees. Please indicate below the correct category and return this
letter to us by February 15, 20------.

------------------------------------------------------------------------
Submarine cable systems (capacity as of Please check the appropriate
December 31) category
------------------------------------------------------------------------
<2.5 Gbps. .............................
2.5 Gbps or greater, but less than 5 .............................
Gbps.
5 Gbps or greater, but less than 10 Gbps. .............................
10 Gbps or greater, but less than 20 .............................
Gbps.
20 Gbps or greater. .............................
------------------------------------------------------------------------

Thank you for your assistance in this matter.

Certification Statement

I ---------- certify under penalty of perjury that the foregoing
and supporting information is true and correct to the best of my
knowledge, information and belief.

Signature ---------- Date ----------

Appendix H

FY 2008 Schedule of Regulatory Fees
------------------------------------------------------------------------
Annual
Fee category regulatory fee
(U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).. 40
Microwave (per license) (47 CFR part 101)............. 40
218-219 MHz (Formerly Interactive Video Data Service) 60
(per license) (47 CFR part 95).......................
Marine (Ship) (per station) (47 CFR part 80).......... 10

[[Page 40116]]

Marine (Coast) (per license) (47 CFR part 80)......... 35
General Mobile Radio Service (per license) (47 CFR 5
part 95).............................................
Rural Radio (47 CFR part 22) (previously listed under 20
the Land Mobile category)............................
PLMRS (Shared Use) (per license) (47 CFR part 90)..... 20
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 1.23
97)..................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts .17
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 295
license sign) (47 CFR part 21).......................
Local Multipoint Distribution Service (per call sign) 295
(47 CFR, part 101)...................................
AM Radio Construction Permits......................... 415
FM Radio Construction Permits......................... 600
TV (47 CFR part 73) VHF Commercial:
Markets 1-10...................................... 71,050
Markets 11-25..................................... 53,525
Markets 26-50..................................... 33,525
Markets 51-100.................................... 21,025
Remaining Markets................................. 5,600
Construction Permits.............................. 5,600
TV (47 CFR part 73) UHF Commercial:
Markets 1-10...................................... 21,225
Markets 11-25..................................... 19,475
Markets 26-50..................................... 11,900
Markets 51-100.................................... 6,800
Remaining Markets................................. 1,800
Construction Permits.............................. 1,800
Satellite Television Stations (All Markets)........... 1,175
Construction Permits--Satellite Television Stations... 595
Low Power TV, TV/FM Translators & Boosters (47 CFR 365
part 74).............................................
Broadcast Auxiliary (47 CFR part 74).................. 10
CARS (47 CFR part 78)................................. 205
Cable Television Systems (per subscriber) (47 CFR part .80
76)..................................................
Interstate Telecommunication Service Providers (per .00314
revenue dollar)......................................
Earth Stations (47 CFR part 25)....................... 195
Space Stations (per operational station in 119,300
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- 125,750
geostationary orbit) (47 CFR part 25)................
International Bearer Circuits (per active 64KB .93
circuit).............................................
International Public Fixed (per call sign) (47 CFR 2,025
part 23).............................................
International (HF) Broadcast (47 CFR part 73)......... 860
------------------------------------------------------------------------

FY 2008 Schedule of Regulatory Fees (Continued)
----------------------------------------------------------------------------------------------------------------
FY 2008 Radio Station Regulatory Fees
-----------------------------------------------------------------------------------------------------------------
FM FM
AM Class AM Class AM Class AM Class Classes Classes
Population served A B C D A, B1 & B, C, C0,
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
1,200,001-3,000,000........................... 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
----------------------------------------------------------------------------------------------------------------

[FR Doc. E9-19104 Filed 8-10-09; 8:45 am]

BILLING CODE 6712-01-P