[Federal Register Volume 75, Number 137 (Monday, July 19, 2010)]
[Rules and Regulations]
[Pages 41932-41962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-17331]
[[Page 41931]]
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Part II
Federal Communications Commission
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47 CFR Part 1
Assessment and Collection of Regulatory Fees for Fiscal Year 2010;
Final Rule
Federal Register / Vol. 75, No. 137 / Monday, July 19, 2010 / Rules
and Regulations
[[Page 41932]]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 10-87; FCC 10-123]
Assessment and Collection of Regulatory Fees for Fiscal Year 2010
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, we amend our Schedule of Regulatory Fees to
collect $335,794,000 in regulatory fees for Fiscal Year (FY) 2010,
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: August 18, 2010.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.
SUPPLEMENTARY INFORMATION:
Adopted: July 8, 2010.
Released: July 9, 2010.
By the Commission.
Table of Contents
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Paragraph
Heading No.
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I. Introduction 1
II. Report and Order 2
A. FY 2010 Regulatory Fee Assessment Methodology 3
1. AM and FM Radio Stations 5
2. Submarine Cable Methodology 11
B. Regulatory Fee Obligations for Digital Full Service 16
Television Broadcasters
C. Regulatory Fee Obligations for Digital Low Power, 21
Class A, and TV Translators/Boosters
D. Commercial Mobile Radio Service Messaging Service 22
E. Interstate Telecommunications Service Provider Fees 25
F. Administrative and Operational Issues 32
1. Mandatory Use of Fee Filer 33
2. Notification and Collection of Regulatory Fees 35
a. Pre-Bills 35
III. Procedural Matters 39
A. Public Notices and Fact Sheets 40
B. Assessment Notifications 41
1. Media Services Licensees 41
2. CMRS Cellular and Mobile Services Assessments 44
C. Streamlined Regulatory Fee Payment Process 47
1. Cable Television Subscribers 47
2. CMRS Cellular and Mobile Providers 48
3. Interstate Telecommunications Service Providers 49
(``ITSP'')
D. Payment of Regulatory Fees 50
1. Lock Box Bank 50
2. Receiving Bank for Wire Payments 51
3. De Minimis Regulatory Fees 52
4. Standard Fee Calculations and Payment Dates 53
E. Enforcement 54
F. Final Regulatory Flexibility Analysis 56
G. Final Paperwork Reduction Act of 1995 Analysis 57
H. Congressional Review Act Analysis 58
IV. Ordering Clauses 59
Appendix A--List of Commenters and Reply Commenters
Appendix B--Calculation of FY 2010 Revenue Requirements and
Pro-Rata Fees
Appendix C--FY 2010 Schedule of Regulatory Fees
Appendix D--Sources of Payment Unit Estimates for FY 2010
Appendix E--Factors, Measurements, and Calculations That Go
Into Determining Station Signal Contours and Associated
Population Coverages
Appendix F--Final Regulatory Flexibility Analysis
Appendix G--Rule Changes
Appendix H--FY 2009 Schedule of Regulatory Fees
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I. Introduction
1. In this Report and Order, we conclude the Assessment and
Collection of Regulatory Fees for Fiscal Year (``FY'') 2010
proceeding to collect $335,794,000 in regulatory fees for FY 2010,
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.\1\ 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.\2\ 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 an August 2010 filing window.
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\1\ 47 U.S.C. 159(a).
\2\ See Consolidated Appropriations Act, 2010, Public Law 111-
117 for the FY 2010 appropriations act language for the Commission
establishing the amount of $335,794,000 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 April 13, 2010, we released a Notice of Proposed
Rulemaking (``FY 2010 NPRM'') (75 FR 21536, April 26, 2010) seeking
comment on regulatory fee issues for FY
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2010.\3\ The section 9 regulatory fee proceeding is an annual
rulemaking process to ensure the Commission collects the required
fee amount each year. In the FY 2010 NPRM, we proposed to retain the
section 9 regulatory fee methodology used in the prior fiscal year
except as discussed below. We received nine comments and five reply
comments.\4\ We address the issues raised in our FY 2010 NPRM and
these comments below.
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\3\ See FY 2010 NPRM.
\4\ See Appendix A for the list of commenters and abbreviated
names.
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A. FY 2010 Regulatory Fee Assessment Methodology
3. In our FY 2010 regulatory fee assessment, we will use the
same section 9 regulatory fee assessment methodology adopted in FY
2009. Each fiscal year, the Commission proportionally allocates the
total amount that must be collected via section 9 regulatory fees.
The results of our FY 2010 regulatory fee assessment methodology
(including a comparison to the prior year's results) are contained
in Appendix B. To collect the $335,794,000 required by Congress, we
adjust the FY 2009 amount downward by 1.8 percent and allocate this
amount across the various fee categories. Consistent with past
practice, we then divide the FY 2010 amount by the number of
estimated payment units in each fee category to determine the unit
fee.\5\ 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 rounded these
unit fees consistent with the requirements of section 9(b)(2) of the
Act.
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\5\ 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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4. In calculating the FY 2010 regulatory fees listed in Appendix
C, we further adjusted the FY 2009 list of payment units (see
Appendix D) based upon licensee databases, industry and trade group
projections, as well as prior year payment information. 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.\6\ 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 2010, and fluctuations in the
number of licenses or station operators due to economic, technical,
or other reasons. Our estimated FY 2010 payment units, therefore,
are based on several variable factors that are relevant to each fee
category. The fee rate also may be rounded or adjusted slightly to
account for these variables.
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\6\ 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 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, as well as industry
sources including, but not limited to, Television & Cable Factbook
by Warren Publishing, Inc. and the Broadcasting and Cable Yearbook
by Reed Elsevier, Inc.
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1. AM and FM Radio Stations
5. As in previous years, we consider the additional factors of
facility attributes and the population served by each radio station
in determining regulatory fees for AM and FM radio stations. 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 amount of regulatory fee to be paid.\7\
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\7\ 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 for a licensed station in
that respective service category. For example, in FY 2009 the
regulatory fee for an AM radio station Construction Permit was no
higher than the regulatory fee for an AM Class C radio station
serving a population of less than 25,000.
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6. In response to our FY 2010 Notice of Proposed Rulemaking, we
received two comments and one reply comment regarding regulatory
fees applicable to radio stations. In his comment, Robert Bittner
states that the regulatory fee structure unfairly favors the largest
AM, FM, and television stations, which have much higher revenues.\8\
Mr. Bittner compares the greater revenues earned by large AM, FM,
and TV stations and the proportion of regulatory fees that they pay
with the revenues and regulatory fees of smaller markets.\9\ Mr.
Bittner proposes the Commission use a flat percentage of a station's
income as a more equitable methodology for assessing regulatory
fees.\10\ As an alternative approach, Mr. Bittner suggests that the
Commission assess regulatory fees on a per-person basis based on the
station's city-grade contour, taking into consideration reductions
for AM stations and those stations that have to reduce power at
night.\11\ Finally, Mr. Bittner argues that the population
thresholds currently in use are too narrow, thereby favoring the
larger stations, which are well beyond the 750,000 population
threshold. In his reply comment, Mr. Alex Goldman agrees with Mr.
Bittner's recommendations.\12\
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\8\ See comments of Robert Bittner at page 1.
\9\ Id. at page 1.
\10\ Id.
\11\ Id.
\12\ See comments of Alex Goldman at page 1.
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7. Mr. Edward A. Schober, representing Radiotechniques
Engineering, also submitted a comment regarding radio station
regulatory fees. Mr. Schober recommends that the Commission review
the regulatory fee structure for AM radio stations in which fees,
from highest to lowest, are currently assessed according to class:
Class A, B, D, and C. Mr. Schober argues that Class D AM radio
stations should be assessed the lowest AM regulatory fee as a class
of service.\13\ In addition, Mr. Schober also recommends that the AM
and FM radio station regulatory fees be related to the amount of
spectrum occupied by the stations, which is 100 kHz for FM stations
and 10 kHz for AM stations; hence, he asserts that AM stations
should be assessed 10 percent of the FM station fee covering the
same population.\14\
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\13\ See comments from Edward A. Schober, representing
Radiotechniques Engineering, at page 2.
\14\ Id. at pages 1-2.
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8. Although Mr. Bittner and Mr. Schober provide interesting
recommendations, the Commission is required to comply with the
language and intent of 47 U.S.C. 159, which governs the assessment
of regulatory fees. Any changes in fee methodology must be
consistent with the governing statute, including the prior
notification to Congress required therein. Mr. Bittner's
recommendation to assess a fee based on revenue income is not
without precedent; we currently consider revenues in assessing
regulatory fees for the Interstate Telecommunications Service
Provider (ITSP) fee. However, there are two significant obstacles to
the use of revenues in assessing radio and TV station fees: (1) In
contrast to ITSPs, radio stations are not required to submit income
or revenue information, which means that radio and television
stations would be left to the honor system in determining their
regulatory fee obligation (and since revenues on a per station basis
can fluctuate from year to year, it would be difficult for the
Commission to project the total revenue base upon which regulatory
fees would be calculated for future collections), and (2) there are
over 12,000 radio and television facilities for which income data
would have to be gathered and maintained from year to year.
9. Mr. Bittner also recommends using a fee per person regulatory
fee methodology for radio stations based on a station's city-grade
contour, rather than the current flat fee per station.\15\ According
to Mr. Bittner, the advantage here would be for radio stations to
account for every person within the station's contour. Implementing
such a regulatory fee methodology would be very burdensome for both
the Commission and the licensees, with more than 10,600 radio
stations having to calculate the per person fee each year. Moreover,
if the Commission were to change to a fee per person methodology,
there would actually be double-counting of persons that are served
by many radio stations in the same community. For example, in a city
such as Los Angeles, there are many radio stations that serve the
same listening public, and if we assessed a fee on a per person
basis, many of these radio stations would be paying a regulatory fee
for the same person many times over. Thus, this proposed ``per
person'' fee would not improve upon the current
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assessment methodology, under which regulatory fees are assessed on
a per license per station basis based on the population reach of the
signal. For all of these reasons, implementing a fee structure based
on a per person basis would be impractical as well as unmanageable.
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\15\ Comments by Robert Bittner, at page 1.
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10. Finally, Mr. Schober recommends that the Commission use
spectrum occupancy as the basis of assessing AM and FM regulatory
fees. The Commission's current system uses population as the basis
for differentiating between higher and lower regulatory fees. There
is a dearth of data in the record to support a correlation between
the amount of bandwidth occupied and the appropriate amount of
regulatory fees to be assessed. Furthermore, the correlation between
spectrum use and regulatory fees may not be consistent with the
intent of the original Section 9 legislation. The original Section 9
legislation only differentiates radio station regulatory fees by
class and by type of service (AM or FM).\16\ We do not dismiss Mr.
Schober's points about the need to review the current AM fee
structure based on class, and find that this fee structure should be
reviewed further for future funding years. Although the original AM
and FM fee grid was submitted as a comment by the National
Association of Broadcasters (NAB) and supported by 19 State
Broadcaster Associations, it should be noted that the Commission
adopted this grid in its FY 1998 Report & Order,\17\ (63 FR 35847,
July 1, 1998) more than a decade ago.
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\16\ 47 U.S.C. 159(g).
\17\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 1998, Report and Order, FCC 98-115, 13 FCC Rcd 19820, para. 37
(adopted June 16, 1998).
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2. Submarine Cable Methodology
11. In the NPRM, we proposed to continue to use an 87.6/12.4
percent revenue allocation between submarine cable and satellite/
terrestrial for the bearer circuit regulatory fees for 2010.\18\
This allocation was established by the Commission in the FY 2009
Regulatory Fees Report and Order,\19\ (74 FR 40089, August 11, 2009)
and was based on a ``Consensus Proposal'' from a large group of
submarine cable operators that was the basis for Commission revising
the methodology for the bearer circuit regulatory fee in the
Submarine Cable Order.\20\ In that Order, the Commission acted on
the Consensus Proposal and adopted a new submarine cable bearer
circuit methodology that assesses 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 carrier cables.\21\ In the
NPRM we stated that since we do not have any additional information
that would lead us to change the allocation, we would use the 87.6/
12.4 percent allocation to calculate the FY 2010 bearer circuit
regulatory fees.\22\
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\18\ NPRM at para. 6.
\19\ See FY 2009 Report and Order at para 8.
\20\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, Second Report and Order, 24 FCC Rcd 4208 (2009)
(``Submarine Cable Order'').
\21\ Id.
\22\ NPRM at para. 6.
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12. In response to the NPRM, Global Crossing North America, Inc.
(``GCNA'') filed comments seeking changes to the regulatory fee
methodology for bearer circuits adopted by the Commission in the
Submarine Cable Order.\23\ GCNA urges the Commission to place a
limit on the aggregate fee that a submarine cable operator (or group
of affiliated operators) should be required to pay in any given
fiscal year to prevent the total regulatory fee from reaching an
inequitable level.\24\ GSNC suggests several changes that the
Commission could make to the regulatory fee methodology to address
its concerns: (1) Imposing a fee on no more than two cable landing
licenses held by a single licensee or group of affiliated licensees,
(2) limiting the aggregate fee that any licensee or group of
affiliated licensees must pay, (3) defining the ``system'' subject
to a regulatory fee as an integrated network of cables, rather than
presuming that each license represents a separate system, or (4)
changing from the 87.6/12.4 percent allocation to a different one,
such as a 50/50 percent allocation.\25\ Verizon and Qwest
Communications International, Inc (``Qwest'') filed reply comments
opposing GCNA's proposals.\26\ GCNA filed reply comments noting that
the Office of the Managing Director (``OMD'') had denied its
petition to have its 2009 regulatory fees reduced.\27\
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\23\ GCNA comments. GCNA was not part of the group of submarine
cable operators that supported the Consensus Proposal, but GCNA also
did not file comments opposing the Consensus Proposal. See Submarine
Cable Order at n. 3, para. 11. See also GCNA comments at n. 22.
\24\ GCNA comments at 1.
\25\ GCNA comments at pages 6-7.
\26\ Qwest reply comments; Verizon reply comments.
\27\ GCNA reply comments.
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13. We will not make any changes to the methodology for the
bearer circuit regulatory fees and will use the 87.6/12.4 percent
revenue allocation for 2010. The Commission adopted the current
methodology in 2009 in the Submarine Cable Order, and it has only
been in place since that time. In the Submarine Cable Order the
Commission found that this methodology allocates bearer circuit
regulatory fees in an equitable and competitively neutral
manner.\28\ As Qwest and Verizon point out, the proposals from GCNA
would shift the payment of the regulatory fees to the benefit of a
few payers, such as GCNA, and to the detriment of most. The
Commission must collect a certain amount of revenue from the bearer
circuit regulatory fee category each year. Reducing the regulatory
fees that certain submarine cable operators pay by either limiting
the number of cable landing licenses for which a fee must be paid,
limiting the aggregate fee a submarine cable operator must pay or
changing the basis for the fees to a ``system'' fee that may include
multiple cable landing licenses, will mean that other submarine
cable operators will have to pay higher regulatory fees. We agree
with Qwest that these changes would disadvantage cable operators
with only one or two cables by increasing the proportion of the
bearer circuit fee that they must pay.\29\ Thus, we find that these
proposals would not be as equitable as the methodology adopted in
the Submarine Cable Order.
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\28\ Submarine Cable Order at paras. 1, 7, 9.
\29\ Qwest reply comments at 1-2.
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14. We also decline to change the basis for the assessment of
the regulatory fee on submarine cable operators. In the Submarine
Cable Order the Commission adopted a methodology for submarine
cables based on a per cable landing license fee consistent with the
Consensus Proposal.\30\ GCNA proposes that the Commission change the
basis for the fee to be a ``system,'' which may include multiple
cable landing licenses.\31\ This proposal, in addition to shifting
the regulatory fees from operators with multiple submarine cable
licenses to other submarine cable operators, would add complexity to
the administration of the regulatory fees. In addition to being
equitable and competitively neutral, the current methodology is easy
to administer.\32\ As Qwest notes, using a ``system'' as the basis
for the submarine cable fees will require the Commission to
establish a new process to determine which submarine cable licenses
comprise a ``system'' and to maintain an updated list of
systems.\33\ This would be complex and controversial because
different submarine cable operators may have different criteria for
what comprises a system and indeed may argue that all of their
submarine cables comprise a ``system'' regardless of any difference
in technology or geography between the submarine cables.\34\ In
addition, changing what is meant by a cable system will affect the
Commission's submarine cable licensing procedures. As the Commission
noted in the Submarine Cable Order, adoption of the new regulatory
fee methodology did not amend the rules for licensing submarine
cables,\35\ and we should not interpret our licensing rules for the
purpose of achieving a particular result in connection with the
application of the regulatory fee methodology.
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\30\ Submarine Cable Order at para. 1.
\31\ GCNA comments at 7.
\32\ Submarine Cable Order at paras. 7, 10.
\33\ Qwest reply comments at 2.
\34\ We note that most U.S. international service providers
state that they provide seamless global services over their global
networks which integrate subcable, terrestrial and satellite
facilities.
\35\ Submarine Cable Order at para. 12.
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15. Finally, we will not change the revenue allocation between
submarine cable operators and terrestrial/satellite operators for
the 2010 regulatory fees. For the 2009 regulatory fees the
Commission used the 87.4/12.6 percent allocation proposed in the
Consensus Proposal.\36\ The Commission noted in the Submarine Cable
Order that this apportionment would be determined on an annual basis
in the annual regulatory fee proceeding.\37\ In the NPRM we proposed
to continue to use the 87.4/12.6 percent revenue allocation because
we did not have any information on which to base a change in that
allocation.\38\ We do not find that there is any basis in the record
of this proceeding to alter that allocation. GCNA proposes that we
change the allocation and suggests a 50/50 allocation.\39\ We agree
with Qwest and
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Verizon that GCNA has not provided any basis for a change in the
allocation.\40\ GCNA questions the appropriateness of the current
allocation, but provides no basis for a 50/50 allocation other than
that it was included in a 2008 proposal by certain cable operators,
including GCNA, as part of the process that lead to the Consensus
Proposal.\41\ We will continue to review this allocation as part of
our annual regulatory fee proceeding, but do not find any basis to
alter the 87.4/12.6 percent revenue allocation for the 2010
regulatory fees.
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\36\ FY 2009 Report and Order at para. 8.
\37\ Submarine Cable Order at n. 35.
\38\ NPRM at 6.
\39\ GCNA comments at 7-8.
\40\ Qwest reply comments at 2; Verizon reply comments at 2-3.
\41\ GCNA comments at 7, n. 21.
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B. Regulatory Fee Obligations for Digital Full Service Television
Broadcasters
16. The digital transition on June 12, 2009 eliminated the
distinction between digital and analog full-service television
stations. As a result, beginning in FY 2010, the Commission will
collect annual regulatory fees from all digital full-service
television stations, and the ``digital-only'' exemption will no
longer be applicable. Also, it is possible that because this is the
first year following the Commission's transition to digital full
service television, some facilities may be operating under a Special
Temporary Authority (STA) beginning on October 1, 2009 until the
digital license is issued. For FY 2010 regulatory fee purposes,
facilities operating under an STA will be considered to be fully
operational licensed facilities and will be obligated to pay the
same regulatory fee as a licensed full-service television station.
17. Although we did not seek comment on this issue, we received
two comments regarding the assessment of regulatory fees for VHF
television stations in the wake of the digital conversion. Fireweed
Communications (``Fireweed'') states that VHF television station
channels come in two ranges: Channels 2-6 (Low VHF and less
desirable) and Channels 7-13 (High VHF and more desirable).\42\
Fireweed states that historically VHF television stations have been
considered to be ``superior to UHF'', and as a result, VHF stations
were assessed a much higher regulatory fee than UHF stations.
Fireweed further asserts that, with the transition to digital TV,
UHF channel assignments have become more advantageous, both in terms
of lower interference and greater desirability.\43\ Therefore,
Fireweed contends, it should not be surprising to see VHF licensees
transitioning not only to UHF channels, but also between VHF
Channels 2-6 and VHF Channels 7-13.\44\ Because of this
transitioning within VHF and to UHF channels, Fireweed argues, the
Commission should base its regulatory fee structure on three tiers
of bands, VHF Channels 2-6, VHF Channels 7-13, and all UHF Channels
(channels 14 and greater).\45\
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\42\ See comments of Fireweed Communications, LLC at page 2.
\43\ Id. at pages 1-2.
\44\ Id. at page 2.
\45\ Id. at page 3.
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18. Sky Television LLC, Spanish Broadcasting System, Inc., and
Sarkes Tarzian, together known as VHF Digital Stations (``VHF
Digital Stations''), also filed comments relating to VHF and UHF
television stations. VHF Digital Stations urge the Commission to
combine VHF and UHF television stations into one fee category by
market size.\46\ VHF Digital Stations recommend that, instead of
having six separate VHF and six separate UHF regulatory fee
categories, the Commission should combine VHF and UHF station fees
into six categories according to market size and identify them
simply as full service digital television stations.\47\ By combining
the VHF and UHF fee categories into one as VHF recommends, the
resulting fee category would in effect eliminate the historical
distinction between the higher VHF fees and the lower UHF fees. VHF
Digital Stations also argue that the current regulatory fee
methodology structure is inconsistent with the spirit of regulatory
fees in which higher fees are assessed for more desirable spectrum;
in the digital world, VHF argues, the UHF channels are the desirable
spectrum.\48\
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\46\ See comments of VHF Digital Stations at page 1.
\47\ Id.
\48\ Id. at pages 3-4.
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19. We acknowledge that in the digital transition some stations
moved from VHF to UHF channels. In fact, over the past several
months, the number of entities changing channels from VHF to UHF has
totaled over 38 percent.\49\ This will impact the regulatory fees
paid by those VHF television stations still operating on VHF
channels. In many of the Nielsen Designated Market Areas (DMA), the
number of VHF stations decreased almost 50 percent and this in turn
will increase the regulatory fee for these categories twofold. While
this potential fee escalation underscores the need for more
fundamental, long term reform of our regulatory fee process, it is
imperative that we take steps under our current fee structure to
mitigate the impact of this shift on television stations still
operating on VHF channels and, at the same time, take at least a
partial step toward more fairly apportioning fees across all
television markets.
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\49\ Data from the Media Bureau's Consolidated Database System
(CDBS) shows that prior to the digital conversion, there were 600
full service analog VHF stations; after the digital conversion,
there were 370 VHF digital television stations, a reduction of 230
VHF stations.
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20. A number of commenters have urged us to either combine all
VHF and UHF full-service television stations into one fee category,
or else to establish a three-tiered regulatory fee system for full-
service televisions.\50\ Rather than ``flash cut'' to one fee
category, which would result in a large fee increase to many UHF
licensees for FY2010, today we use the shift in stations discussed
to move toward a combined fee category by including in the UHF
category the units and their corresponding dollar amounts of the VHF
stations that changed channels during or after the digital
conversion. Thus, we use the VHF fee amount in the proposed FY 2010
NPRM as a starting point in calculating the final FY 2010 VHF
regulatory fee rate. Then, in order to calculate the VHF and UHF FY
2010 regulatory fees, we move the number of ``shifting'' units
(units of the stations that changed channels from VHF to UHF) and
their corresponding dollar amounts from the VHF fee category by
market size to the UHF fee category within the same market size.
Thus, within each UHF fee category by market size, the projected
revenue amount is increased along with the number of units in that
fee category. The resulting larger projected revenue amount and the
higher number of units is then used to calculate each UHF fee
category by market size. It is important to note that, by moving
only the dollar amounts and their corresponding units from the VHF
to the UHF fee category by market size, the impact of the resulting
fee increase on the UHF fee category is approximately 18%-20% less
than the fee increase that would have resulted from combining all
VHF and all UHF television stations into one digital category by
market size. We find this to be in the public interest because it is
a more equitable result for all entities involved.
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\50\ For comments regarding a combined VHF/UHF television fee
category, see comments of VHF Digital Stations at pages 1-2; for
recommendations on a three-tiered regulatory fees system for
television stations, see comments of Fireweed Communications at page
3.
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C. Regulatory Fee Obligations for Digital Low Power, Class A, and
TV Translators/Boosters
21. Although the digital transition of full-service television
stations was completed on June 12, 2009, the digital transition for
Low Power, Class A, and TV Translators/Boosters is still voluntary,
and there is currently no set date for the completion of this
transition. Historically, the discussion of the digital transition
conversion with respect to regulatory fees has centered on full-
service television stations, and therefore, the elimination of the
``digital only'' exemption described in paragraph 20 has no impact
on this class of regulatees. Because the digital transition in the
Low Power, Class A, and TV Translators/Booster facilities is
voluntary and the transition will occur over a period of time, it is
possible that some facilities will convert from analog to digital
more quickly than others. During this interim transition period,
licensees of Low Power, Class A, and TV Translator/Booster
facilities could be operating in analog mode, in digital mode, or in
an analog and digital simulcast mode. For regulatory fee purposes, a
fee will be assessed for each facility operating either in an analog
or digital mode. In instances in which a licensee is operating in
both an analog and digital mode as a simulcast, a single regulatory
fee will be assessed for this analog facility that has a digital
companion channel. As greater numbers of facilities convert to
digital mode, the Commission will provide revised instructions on
how regulatory fees will be assessed.
D. Commercial Mobile Radio Service Messaging Service
22. Commercial Mobile Radio Service (``CMRS'') Messaging
Service, which replaced the CMRS One-Way Paging fee category in
[[Page 41936]]
1997, includes all narrowband services.\51\ Since 1997, the number
of subscribers has declined from 40.8 million to 6.5 million, and
there does not appear to be any sign of recovery to the subscriber
levels of 1997-1999. Because of this declining subscribership, since
FY 2003 the Commission has maintained the CMRS Messaging fee rate at
$0.08 per subscriber, the rate that was established in FY 2002.\52\
We therefore sought comment in the FY 2010 Notice of Proposed
Rulemaking to continue maintaining the regulatory fee rate at $0.08
per subscriber due to the declining subscriber base in this
industry.\53\
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\51\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 1997, MD Docket No. 96-186, Report and Order, 12 FCC Rcd 17161,
17184-85, para. 60 (1997) (``FY 1997 Report and Order'').
\52\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2003, MD Docket No. 03-83, Report and Order, 18 FCC Rcd 15985,
paras. 21-22 (2003) (``FY 2003 Report and Order'').
\53\ Between FY 1997 and FY 2009, the subscriber base in the
paging industry declined 84 percent from 40.8 million to 6.5 million
subscribers, according to FY 2009 collections data as of September
30, 2009.
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23. We received one comment. The American Association of Paging
Carriers (``AAPC'') filed a comment urging the Commission to either
maintain the FY 2010 CMRS Messaging Service fee at $0.08 per unit or
prescribe a lower fee.\54\ AAPC asserts that the industry
circumstances of 2003 of declining subscribership continue
today.\55\ AAPC also contends that a review of the regulatory fee
methodology would reveal that further reduction in the paging
regulatory fee is warranted.\56\
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\54\ See comments of American Association of Paging Carriers, at
page 1.
\55\ Id. at page 3.
\56\ Id. at page 2.
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24. We agree with AAPC that the circumstances prevailing in 2003
still exist today, and conclude that the FY 2010 CMRS Messaging
regulatory fee should remain at a rate of $0.08 per subscriber.
E. Interstate Telecommunications Service Provider Fees
25. As we noted in Fiscal Year 2009 Regulatory Fee Report and
Order,\57\ the comprehensive regulatory fee revision issues raised
in the FY 2008 Further Notice of Proposed Rulemaking (FNPRM) \58\
(73 FR 50201, August 26, 2008) remain outstanding. In part, we
invited the Interstate Telecommunications Service Providers (ITSPs)
to comment on several specific regulatory fee issues.\59\ We note
that in addition to our request for comment, we released specific
data to assist commenters.\60\ The responses were not as detailed as
we had hoped. Indeed, we received two comments and one reply comment
on the subject of regulatory fees applicable to ITSPs. STi Prepaid
LLC (``STi Prepaid'') argues that since its inception in 1994, the
Commission's regulatory fee methodology has not changed
significantly,\61\ and as a result, the regulatory fee structure may
not accurately reflect significant changes that have occurred in the
interstate and international telecommunications marketplace since
that time.\62\ Because the marketplace has changed while the
regulatory fee structure has not, STi Prepaid asserts that ITSP
providers bear by far the largest burden of total regulatory fees,
and further increases in ITSP regulatory fees borne by interstate
and international providers are no longer tenable.\63\ STi Prepaid
urges the Commission to re-evaluate the allocation and methodology
that is used to calculate ITSP regulatory fees.\64\
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\57\ Assessment and Collection Of Regulatory Fees For Fiscal
Year 2009, Assessment And Collection Of Regulatory Fees For Fiscal
Year 2008, Report and Order, 24 FCC Rcd. 10301 (2009).
\58\ Assessment and Collection Of Regulatory Fees For Fiscal
Year 2008, Report and Order and Further Notice of Proposed
Rulemaking, 24 FCC Rcd. 6388 (2008) (2008 Regulatory Fee R&O and
FNPRM).
\59\ Id., at 6402-05. We sought comments on ways to improve our
regulatory fee process regarding any and all categories of service
(see paras. 31-36), and we specifically invited ITSPs to respond to
the following:
41. Relative to other services that pay regulatory fees, we
recognize that the ITSP market has changed since the Commission
calculated the cost of ITSP regulation in FY 1997. We agree that it
is appropriate to review our methodology for assessing regulatory
fees on ITSPs. We seek comment on whether ITSPs current share of
regulatory fees, which has not been revised significantly since
1997, is appropriate. Commenters should discuss the ITSP market and
how it has changed since 1997 relative to the other services that
pay regulatory fees such as wireless and broadcast services.
Commenters suggesting a change in the proportionate share for ITSPs
should propose a methodology. For example, would it be more
appropriate to return to the original Schedule of Regulatory Fees
and assess fees per 1,000 access lines? We note that we have
experienced significant success and accuracy with a number-based
approach for CMRS. Would number of access lines be most appropriate?
\60\ The Office of Managing Director Releases Data to Assist
Commenters on Issues Presented in Further Notice Of Proposed
Rulemaking Adopted on August 1, 2008, Public Notice, 23 FCC Rcd.
14581 (2008).
\61\ STi Prepaid's view of the antecedent regulatory fee events
is a generalized overstatement. Indeed, the Commission has opened a
number of proceedings to adjust the fee methodology, see e.g.,
Assessment and Collection of Regulatory Fees for Fiscal Year 2004,
Report and Order, 19 FCC Rcd. 11662, 11667, para. 12 (2004).
\62\ See comments of STi Prepaid LLC at page 1.
\63\ Id.
\64\ Id.
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26. Unlike most other regulatory fees that are based on a flat
fee per license, or on some multiplier based on the regulatee's
market size, ITSP regulatory fees are based on revenues, with ITSP
providers paying a regulatory fee on each dollar of revenue
generated from both interstate and international revenues. STi
contends that, since ITSPs compete with entities paying regulatory
fees based on a flat fee, the current regulatory fee methodology
applicable to ITSPs puts them at a competitive disadvantage.\65\
Further, STi Prepaid urges the Commission to consider the size and
scope of the carrier's resources, as well as the type of customer
base, as grounds for regulatory fee relief.\66\
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\65\ Id. at page 4.
\66\ Id. at page 8.
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27. In its comments, The United States Telecom Association
(USTelecom) argues that ITSP providers pay a disproportionate share
of the regulatory fee burden based on a methodology that was
established in 1994, and that this burden is passed on to
consumers.\67\ USTelecom also argues that the methodology currently
used to calculate regulatory fees does not take into consideration
the changes that have occurred in the communications marketplace
since 1994 that directly impact the ITSP industry.\68\ Updating FTEs
and proportionally allocating the cost of support bureaus, USTA
contends, would be the first step in rectifying an otherwise
inequitable regulatory fee methodology that disproportionally
burdens ITSP providers.\69\ In its reply comments, STi Prepaid again
stresses that there have been few reforms in the regulatory fee
methodology since 1994,\70\ and argues that, consistent with similar
arguments for reforming the regulatory fee methodology made by
paging, submarine cable, and VHF television service licensees during
the past several years, \71\ the Commission should ``look for ways
to ensure that [its] regulatory fee methodologies continue to
reflect the industries [it] regulates.\72\
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\67\ See comments of The United States Telecom Association, at
page 1.
\68\ Id. at pages 1-2.
\69\ Id. at pages 1, 4-5.
\70\ See STi Prepaid reply comments at page 1.
\71\ Id. at pages 2-3.
\72\ Id. at page 4.
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28. Section 9 of the Act permits the Commission to ``add,
delete, or reclassify services in the [regulatory fee] Schedule to
reflect * * * changes in the nature of * * * services as a
consequence of Commission rulemaking proceedings or changes in
law,'' \73\ and significant changes in telecommunications services
and markets have unquestionably occurred as a result, inter alia, of
the implementation of the Telecommunications Act of 1996. Our
current fee methodology is based in part on a macro-level FTE data
model that we instituted in FY 1999 after we discontinued attempts
to base our fee schedule on the available cost data first used in
1997.\74\ Since the inception of that last change to our model, both
the industry and the Commission have undergone significant change.
Accordingly, we agree with the notion that the proportion of
regulatory fees paid by ITSP providers as a whole should be re-
examined. We further believe that we should consider whether and how
our methodology for assessing regulatory fees should be changed to
reflect other changes in the communications landscape.
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\73\ 47 U.S.C. 159(b)(3).
\74\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2004, Report and Order, 19 FCC Rcd. 11662, 11667, para. 12
(2004)
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29. With respect to the specific issue of rebalancing the fees
paid by ITSPs, we note that for a number of years, the regulatory
fees collected from ITSP service providers have accounted for a
significant percentage of all regulatory fees collected.\75\ In
recent years
[[Page 41937]]
the ITSP industry has experienced a decline in revenues but, because
ITSPs do not pay a flat regulatory fee but instead pay fees based on
a percentage of their revenues, the regulatory fees paid by ITSP
service providers has risen substantially.\76\ Because the comments
to our question did not provide sufficient detail, we are unable to
ascertain exactly how the collection of fees from end users has
affected the operation of the ITSP service providers or to what
extent a shift in the amount of the payment would be warranted to
address the alleged competitive disadvantage or provide warranted
relief to ITSP service providers.
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\75\ See e.g., Assessment and Collection of Regulatory Fees for
Fiscal Year 1997, Report and Order, 12 FCC Rcd 17161, Attachment C
(1997). The pro-rated revenue requirement was $64,960.438 of a total
revenue requirement of $152,523,000.
\76\ Between FY 2007 and FY 2009, the ITSP fee rate increased
from $0.00266 to $0.00342 per revenue dollar. Because of further
declines in revenue, the FY 2010 ITSP fee rate is slated to increase
further from $.00351 (the rate set forth in the FY 2010 Notice of
Proposed Rulemaking) to $0.00364 per revenue dollar based on more
accurate revenue projections available at the time of this Report
and Order.
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30. Moreover, we are aware that reducing the fees paid by ITSP
providers will increase the fees paid by licensees in other service
categories (some of which are not able to pass the cost of the fee
to the end user), and this could potentially impact the regulatory
fees paid by all other entities regulated by the Commission. Unless
we revisit the fee schedule in light of all the shifts that have
occurred in the market for telecommunications services, and consider
carefully what further changes may occur in the foreseeable future,
we may succeed in addressing one anomaly while unintentionally
creating others.
31. In light of these considerations and consistent with the
comments received in response to the FY 2008 Further Notice of
Proposed Rulemaking, we acknowledge that the revenue base upon which
the ITSP fee is calculated has been decreasing for several
years.\77\ Therefore, we believe it would best serve the public
interest for the Commission in FY 2010 to set the ITSP regulatory
fee rate at $0.00349 per revenue dollar. In future years, we will
further examine the nature and extent of all changes that need to be
made to our regulatory fee schedule and calculations. In a separate
and forthcoming action, we will call for comment on issues
including, but not limited to, how changes in the telecommunications
marketplace may warrant rebalancing of regulatory fees among
existing service providers, and how further changes to the schedule
of fees may be anticipated in light of new changes to the
telecommunications landscape resulting from implementation of the
National Broadband Plan and the introduction of other new wired and
wireless services. This FNPRM will therefore serve two purposes: it
will update, to the extent necessary, the record on regulatory fee
rebalancing that we had already been contemplating for existing
services, \78\ and it will expand this inquiry to new issues and
services not covered by the 2008 Further Notice of Proposed
Rulemaking.
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\77\ The projected FY 2010 ITSP fee factor in the FY 2010 NPRM
of $.00351 was based on December 2009 ITSP revenue data. April 2010
ITSP revenue data, however, reflected revenues 3.4 percent lower
than projections. This revenue decrease would have resulted in an
increase in the resulting fee factor from the projected $.00351 to a
fee factor of $.00364. Thus, based on the proposed methodology of
the FY 2010 NPRM and the revised revenue numbers, the ITSP fee
factor would have increased from $.00342 (FY 2009 ITSP fee rate) to
$.00364. The concerns of these providers, which collectively
represent 46.82 percent of all regulatory fees paid in any given
year, resulted in the adoption, as an interim measure, an ITSP fee
rate at $.00349, which is a 2.1% increase from FY 2009. We find this
to be a reasonable interim measure pending our review of whether
part of that 46.82 percent of the regulatory fee burden might be
moved from ITSP in the context of fundamental reform.
\78\ The Commission has acted on several of the issues raised in
the FY 2008 Report and Order and Further Notice of Proposed
Rulemaking, including implementation of (1) a change in the bearer
circuit methodology for calculating regulatory fees, and (2) the
elimination of two regulatory fee categories, the International
Public Fixed Radio and International High Frequency Broadcast
Stations.
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F. Administrative and Operational Issues
32. In FY 2009, the Commission implemented several changes in
procedures which simplified the payment and reconciliation processes
of FY 2009 regulatory fees. These changes proved to be very helpful
to both licensees and to the Commission, and we propose in the
following paragraphs to expand upon these improvements. In FY 2010,
the Commission will promote greater use of technology (and less use
of paper) to improve the regulatory fee notification and collection
process.
1. Mandatory Use of Fee Filer
33. In FY 2009, we required that all regulatees use the
Commission's electronic filing and payment system (also known as
``Fee Filer'').\79\ Licensees filing their annual regulatory fee
payments were required to begin the process by entering the
Commission's Fee Filer system with a valid FRN and password. This
change was beneficial to both licensees and to the Commission. For
licensees, the mandatory use of Fee Filer eliminated the need to
manually complete and submit a hardcopy Form 159, and for the
Commission, having the data in electronic format made it much easier
to process payments more efficiently and effectively. Because of the
success of this process change, we proposed in the FY 2010 NPRM to
continue to make the use of Fee Filer mandatory as the starting
point for filing annual regulatory fees. We sought comment on this
proposal, but received no comments or reply comments on this
specific issue.
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\79\ FY 2009 Report and Order at paras. 20 and 21.
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34. The mandatory use of Fee Filer does not mean that licensees
are expected to pay only through Fee Filer--it is only mandatory for
licensees to begin the process of filing their annual regulatory
fees using Fee Filer. This is one reason it is very important for
licensees to have a current and valid FRN address on file in the
Commission's Registration System (CORES). 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. These Form 159-E's
not only will reduce errors resulting from illegible handwriting on
hardcopy Form 159's, but, because they are generated from Fee Filer,
these forms also will create an electronic record of licensee
payment attributes that are more easily tracked and searched than
hardcopy Form 159's completed manually and mailed to the Commission.
Hence, in FY 2010, we conclude that regulatees must start the FY
2010 regulatory fee payment process using the Commission's
electronic filing and payment system (``Fee Filer'').
2. Notification and Collection of Regulatory Fees
a. Pre-Bills
35. 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,\80\ holders of Cable Television Relay Service (``CARS'')
licenses, and Earth Station licensees.\81\ The remaining regulatees
did not receive pre-bills. In our FY 2009 Report and Order, the
Commission decided to have the attributes of these pre-bills viewed
in Fee Filer, rather than mailing pre-bills out to licensees via
surface mail.\82\ Overall, the response to this procedural change
was positive. In our FY 2010 NPRM, the Commission again proposed to
continue the practice of not mailing out annual regulatory fee
bills. We sought comment on this issue, and received one comment
from the American Cable Association (ACA).
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\80\ 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.
\81\ 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.
\82\ See FY 2009 Report and Order at paras. 24, 26.
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36. ACA urges the Commission to send e-mails to CARS and Earth
Station licensees to notify them when pre-bills are loaded into Fee
Filer for viewing, and to mail a final hardcopy notice to these
licensees on how to log-in to Fee Filer and access the pre-bill.\83\
As an association of small and medium-sized cable companies, ACA
believes that many of its member entities are not able to keep up
with the Commission's rules and regulations, and therefore the
Commission should make more of an effort to reach out to these
entities regarding regulatory fees.\84\
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\83\ See comments of the American Cable Association (ACA) at
page 1.
\84\ Id. at pages 2-3.
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[[Page 41938]]
37. We agree with ACA that many small and medium-sized
regulatees do not have the same resources as large regulatees to
monitor Commission rulings on a regular basis. However, we are not
imposing any significant burden on these small to medium-sized
regulatees. Historically, regulatory fees have always been due in an
August or September timeframe, and the due date is generally posted
on the Commission-wide Web site weeks before the fee deadline.
Hence, by checking the Commission's Web site periodically beginning
in July, regulatees will be able to ascertain the fee due date, and
receive instructions on how to access Fee Filer, view their bill,
and make a fee payment.
38. With respect to ACA's recommendation to send e-mails to CARS
and Earth Station licensees as a form of notification, the
Commission does not maintain a systematic listing of e-mail
addresses for individual CARS and Earth Station licensees, and
sending out e-mails that are not necessarily current in the
Commission's licensing systems may not result in adequate
notification. However, once Fee Filer is open to licensees, a public
notice will be placed on the Commission's Web site, which will
provide the signal for licensees to begin viewing their pre-bill
information online. Until the Commission is able to maintain a
current, systematic listing of licensee e-mails, the use of
Commission e-mails would provide less than adequate notification.
III. Procedural Matters
39. Included below are procedural items as well as our current
payment and collection methods, which 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 of reminding regulatory fee payers and the public about these
aspects of the annual regulatory fee collection process.
A. Public Notices and Fact Sheets
40. Each year we post public notices and fact sheets pertaining
to regulatory fees on our Web site. These documents contain
information about the payment due date and the regulatory fee
payment procedures. We will continue to post this information on
http://www.fcc.gov/fees/regfees.html, but as in previous years we
will not send public notices and fact sheets to regulatees.
B. Assessment Notifications
1. Media Services Licensees
41. Beginning in FY 2003, we sent fee assessment notifications
via surface mail to media services entities on a per-facility
basis.\85\ 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.\86\ Consistent with procedures used last
year, we will mail media assessment notifications to licensees in FY
2010 at their primary record of contact in our Consolidated Database
System (``CDBS''), and to a secondary record of contact, if
available.\87\ However, after FY 2010, as part of the Commission's
initiative to emphasize electronic filing and reduce paper usage,
the Commission will stop mailing out media notification assessments
to media licensees. Instead the Commission will rely more on its
various Web sites, including the Commission-authorized Web site at
www.fccfees.com, to notify licensees of pending annual regulatory
fees and to update or correct any information regarding their
facilities and their fee-exempt status.\88\
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\85\ As stated previously at footnote 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.
\86\ 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.
\87\ We 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. As in prior
years, fee assessments will not be issued for broadcast auxiliary
stations.
\88\ 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''). There is also a Commission-authorized Web site
that media services licensees can use to view and update their
exempt status (http://www.fccfees.com).
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42. The decision to discontinue mailing media notifications
beginning in FY 2011 is consistent with the Commission's effort to
become more electronic and less paper-oriented. However, the
Commission understands that not all media licensees are able to
access the Commission's various electronic Web sites once the
hardcopy notification letters are discontinued in FY 2011.
Therefore, to be receptive to the needs of these licensees, the
Commission will allow more time for comment by leaving the comment
and reply comment period open until September 30, 2010 on the
specific issue of whether the media notification letters should be
discontinued in FY 2011. Because this decision does not impact FY
2010 regulatory fees, we will be addressing this issue in the
Commission's FY 2011 Notice of Proposed Rulemaking after we have
reviewed the various comments and reply comments submitted. The
Commission will also remind media licensees of this proposed change
in notification procedures for next year when it sends out letters
to media licensees regarding their FY 2010 regulatory fee
obligations. To ensure that the comments of all potentially affected
persons are properly included in the record, media licensees should
submit their comments and reply comments on this issue as follows:
Comments and Replies. Pursuant to sections 1.415 and
1.419 of the Commission's rules, 47 CFR 1.415, 1.419, interested
parties may file comments and reply comments on or before the dates
indicated on the first page of this document. Comments may be filed
using: (1) The Commission's Electronic Comment Filing System (ECFS),
(2) the Federal Government's eRulemaking Portal, or (3) by filing
paper copies. See Electronic Filing of Documents in Rulemaking
Proceedings, 63 FR 24121 (1998).
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/ or the Federal eRulemaking Portal: http://www.regulations.gov.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. If more than one
docket or rulemaking number appears in the caption of this
proceeding, filers must submit two additional copies for each
additional docket or rulemaking number.
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters
at 445 12th St., SW., Room TW-A325, Washington, DC 20554. All hand
deliveries must be held together with rubber bands or fasteners. Any
envelopes must be disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal
Service Express Mail and Priority Mail) must be sent to 9300 East
Hampton Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 445 12th Street, SW., Washington DC 20554.
People with Disabilities. To request materials in
accessible formats for people with disabilities (braille, large
print, electronic files, audio format), send an e-mail to
[email protected] or call the Consumer and Governmental Affairs Bureau
at 202-418-0530 (voice), 202-418-0432 (TTY).
Availability of Documents. Comments, reply comments,
and ex parte submissions will be available for public inspection
during regular business hours in the FCC Reference Center, Federal
Communications Commission, 445 12th Street, SW., CY-A257,
Washington, DC 20554. These documents will also be available free
online, via ECFS. Documents will be available electronically in
ASCII, Word, and/or Adobe Acrobat.
Accessibility Information. To request information in
accessible formats (computer diskettes, large print, audio
recording, and braille), send an e-mail to [email protected] or call
the Commission's Consumer and Governmental Affairs Bureau at (202)
418-0530 (voice), (202) 418-0432 (TTY). This document can also be
downloaded in Word and Portable Document Format (``PDF'') at: http://www.fcc.gov.
43. Although the Commission will mail media assessment
notifications to licensees in FY 2010, all licensees (including
media services) will be required to use Fee Filer as the first step
in paying their regulatory fee obligations. The notification
assessments
[[Page 41939]]
provide licensees with the same media data attributes found in Fee
Filer. However, we caution licensees not to send in these
notification assessments as a substitute for using Fee Filer as the
first step in filing and paying annual regulatory fees. As explained
previously, 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, or wire transfer. A Form 159-E generated from
Fee Filer is required when mailing in the annual regulatory fee
payment.
2. CMRS Cellular and Mobile Services Assessments
44. As we have done in prior years, we will mail an initial
assessment letter to Commercial Mobile Radio Service (CMRS)
providers using data from the Numbering Resource Utilization
Forecast (``NRUF'') report that is based on ``assigned'' number
counts that have been adjusted for porting to net Type 0 ports
(``in'' and ``out'').\89\ The letter will include a listing of the
carrier's Operating Company Numbers (``OCNs'') upon which the
assessment is based.\90\ The letters will not include OCNs with
their respective assigned number counts, but rather, an aggregate
total of assigned numbers for each carrier.
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\89\ 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, paras. 38-44
(2005).
\90\ Id.
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45. If the carrier does not agree with the number of subscribers
listed on the initial assessment letter, the carrier will have an
opportunity within a specific timeframe to revise the subscriber
count by submitting supporting documentation to substantiate the
change. However, instead of mailing the revised figures, providers
will be asked to access Fee Filer and follow the instructions
provided in order to submit their revised subscriber count along
with any supporting documentation.\91\ The Commission will then
review the revised count and supporting documentation and either
approve or disapprove the submission in Fee Filer. The provider will
be able to review the decision online in Fee Filer. If the
submission is disapproved, the Commission will attempt to contact
the provider so that the provider will have an opportunity to
discuss its revised subscriber count and/or provide additional
supporting documentation. If we receive no response or correction to
the initial assessment letter, or we do not reverse the disapproval
of the provider's revised count submission, we will expect the fee
payment to be based on the number of subscribers listed on the
initial assessment. Once the timeframe for revision has passed, the
subscriber counts will be finalized. These subscriber counts will
then be the basis upon which CMRS regulatory fees will be assessed.
Providers will be able to view their final subscriber counts online
in Fee Filer. A final CMRS assessment letter will not be mailed out.
---------------------------------------------------------------------------
\91\ In the supporting documentation, the provider will need to
state a reason for the change, such as a purchase or sale of a
subsidiary, the date of the transaction, and any other pertinent
information that will help to justify the change.
---------------------------------------------------------------------------
46. Because some carriers do not file the NRUF report, they may
not receive an initial letter of assessment. In these instances, the
carriers should compute their fee payment using the standard
methodology \92\ that is currently in place for CMRS Wireless
services (e.g., compute their subscriber counts as of December 31,
2009), 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. If the Commission determines that the number of
subscribers paid is inaccurate, the Commission will bill the carrier
for the difference between what was paid and what should have been
paid.
---------------------------------------------------------------------------
\92\ See, e.g., Federal Communications Commission, Regulatory
Fees Fact Sheet: What You Owe--Commercial Wireless Services for FY
2009 at 1 (released September 2009).
---------------------------------------------------------------------------
C. Streamlined Regulatory Fee Payment Process
1. Cable Television Subscribers
47. 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
48. In FY 2006, we streamlined the CMRS payment process by
eliminating the requirement for CMRS providers to identify their
individual call signs when making their regulatory fee payment,
instead allowing CMRS providers to pay their regulatory fees only at
the aggregate subscriber level without having to identify their
various call signs.\93\ We will continue this practice in FY 2010.
In FY 2007, we consolidated the CMRS cellular and CMRS mobile fee
categories into one fee category with a single fee code, thereby
eliminating the requirement for CMRS providers to separate their
subscriber counts into CMRS cellular and CMRS mobile fee categories
during the regulatory fee payment process. This consolidation of fee
categories enabled the Commission to process payments more quickly
and accurately. For FY 2010, we will continue this practice of
combining the CMRS cellular and CMRS mobile fee categories into one
regulatory fee category.
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\93\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092,
8105, para. 48 (2006).
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3. Interstate Telecommunications Service Providers (``ITSP'')
49. 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 2010, we will
continue rounding lines 14 and 16 when calculating the FY 2010 ITSP
fee obligation. In addition, as in FY 2009, we will continue the
practice of not mailing out Form 159-W via surface mail.
D. Payment of Regulatory Fees
1. Lock Box Bank
50. All lock box payments to the Commission for FY 2010 will be
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC.
During the regulatory fee season, for those licensees paying by
check, money order, or by credit card using Form 159-E remittance
advice, the fee payment and Form 159-E remittance advice should be
mailed to the following address: Federal Communications Commission,
Regulatory Fees, P.O. Box 979084, St. Louis, MO 63197-9000.
Additional payment options and instructions are posted at http://www.fcc.gov/fees/regfees.html.
2. Receiving Bank for Wire Payments
51. 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.
Regulatees should discuss arrangements (including bank closing
schedules) with their bankers several days before they plan to make
the wire transfer to allow sufficient time for the transfer to be
initiated and completed before the deadline. Complete instructions
for making wire payments are posted at http://www.fcc.gov/fees/wiretran.html.
3. De Minimis Regulatory Fees
52. Regulatees whose total FY 2010 regulatory fee liability,
including all categories of fees for which payment is due, is less
than $10 are exempted from payment of FY 2010 regulatory fees.
4. Standard Fee Calculations and Payment Dates
53. 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, 2009 for AM/FM radio stations, VHF/UHF full service television
stations, and satellite television stations. Beginning in FY 2010,
the digital-only exemption for full service VHF and UHF television
stations is no longer applicable; with respect to other media
services, such as Low Power Television, and TV Translators and
Boosters, there is no exemption for having digital service.
Regulatory fees must be paid for all broadcast facility licenses
granted on or before October 1, 2009. In instances where a permit or
license is transferred or assigned after October 1, 2009,
responsibility for payment rests with the
[[Page 41940]]
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, 2009. In instances where a permit or license is
transferred or assigned after October 1, 2009, 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.\94\
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\94\ 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, 2009. The number of subscribers,
units, or telephone numbers on December 31, 2009 will be used as the
basis from which to calculate the fee payment. In instances where a
permit or license is transferred or assigned after October 1, 2009,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
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 2010.
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, 2009.\95\ Regulatory fees also must be paid for CARS
licenses that were granted on or before October 1, 2009. In
instances where a permit or license is transferred or assigned after
October 1, 2009, responsibility for payment rests with the holder of
the permit or license as of the fee due date.
---------------------------------------------------------------------------
\95\ 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 2009, rather than on a count as of December 31,
2009.
---------------------------------------------------------------------------
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, 2009. In instances where a
permit or license is transferred or assigned after October 1, 2009,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
International Services: Submarine Cable Systems:
Regulatory fees for submarine cable systems are to be paid on a per
cable landing license basis based on circuit capacity as of December
31, 2009. In instances where a license is transferred or assigned
after October 1, 2009, responsibility for payment rests with the
holder of the license as of the fee due date.
International Services: Terestrial and Satellite
Services: Finally, 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,
2009 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 as of December 31, 2009. Whether
circuits are used specifically for voice or data is not relevant for
these purposes in determining that they are active circuits. In
instances where a permit or license is transferred or assigned after
October 1, 2009, responsibility for payment rests with the holder of
the permit or license as of the fee due date.
E. Enforcement
54. To be considered timely, regulatory fee payments must be
received and stamped at the lockbox bank by the last day of the
regulatory fee filing window. Section 9(c) of the Act requires us to
impose an additional charge as a penalty for late payment of any
regulatory fee.\96\ 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 section 1.1910
of the Commission's Rules \97\ and in the Debt Collection
Improvement Act of 1996 (``DCIA'').\98\ We also assess
administrative processing charges on delinquent debts to recover
additional costs incurred in processing and handling the related
debt pursuant to the DCIA and section 1.1940(d) of the Commission's
rules.\99\ 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.
---------------------------------------------------------------------------
\96\ 47 U.S.C. 159(c).
\97\ See 47 CFR 1.1910.
\98\ 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.
\99\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------
55. 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.\100\ 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).
---------------------------------------------------------------------------
\100\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
---------------------------------------------------------------------------
F. Final Regulatory Flexibility Analysis
56. As required by the Regulatory Flexibility Act of 1980
(``RFA''),\101\ the Commission has prepared a Final Regulatory
Flexibility Analysis (``FRFA'') relating to this Report and Order.
The FRFA is set for in Appendix F.
---------------------------------------------------------------------------
\101\ 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. Final Paperwork Reduction Act of 1995 Analysis
57. This Report and Order does not contain proposed information
collection requirements subject to the Paperwork Reduction Act of
1995 (``PRA''), Public Law 104-13. In addition, therefore, it does
not contain any new or modified information collection burden for
small business concerns with fewer than 25 employees, pursuant to
the Small Business Paperwork Relief Act of 2002, Public Law 107-198,
see 44 U.S.C. 3506 (c) (4). Completion of the 159 family of forms
required by the Commission's regulatory fee payment process is
already approved by the Office of Management and Budget under
information collections 3060-0589 and 3060-0949.
H. Congressional Review Act Analysis
58. 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.\102\
---------------------------------------------------------------------------
\102\ 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.
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[[Page 41941]]
IV. Ordering Clauses
59. 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.
60. 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.
List of Subjects in 47 CFR Part 1 Administrative Practice and
Procedure
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
APPENDIX A
List of Commenters
------------------------------------------------------------------------
Commenter Abbreviated name
------------------------------------------------------------------------
American Association of ``AAPC.''
Paging Carriers.
American Cable Association.. ``ACA.''
Robert Bittner.............. ``Robert Bittner.''
Fireweed Communications, LLC ``Fireweed.''
Global Crossing North ``GCNA.''
America, Inc.
Edward A. Schober, ``Radiotechniques Engineering.''
Radiotechniques
Engineering, LLC.
STi Prepaid, LLC............ ``STi Prepaid.''
The United States Telecom ``USTelecom.''
Association.
VHF Digital Stations........ ``VHF Digital Stations.''
------------------------------------------------------------------------
List of Reply Commenters
------------------------------------------------------------------------
Commenter Abbreviated name
------------------------------------------------------------------------
Global Crossing North ``GCNA.''
America, Inc.
Alex Goldman................ ``Alex Goldman.''
Qwest Communications ``Qwest.''
International, Inc.
STi Prepaid, LLC............ ``STi Prepaid.''
Verizon..................... ``Verizon.''
------------------------------------------------------------------------
APPENDIX B
Calculation of FY 2010 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 new Rounded new
FY 2010 Payment FY 2009 Pro-Rated FY FY 2010 FY 2010 Expected
Fee category units Years Revenue 2010 revenue regulatory regulatory FY 2010
estimate requirement fee fee revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use).............................. 1,200 10 480,000 469,912 39 40 480,000
PLMRS (Shared use)................................. 11,500 10 2,300,000 2,251,662 20 20 2,300,000
Microwave.......................................... 9,500 10 2,250,000 2,202,713 23 25 2,375,000
218-219 MHz (Formerly IVDS)........................ 3 10 1,950 1,909 64 65 1,950
Marine (Ship)...................................... 8,000 10 750,000 734,238 9 10 800,000
GMRS............................................... 9,700 5 275,000 269,220 6 5 242,500
Aviation (Aircraft)................................ 4,600 10 350,000 342,644 7 5 230,000
Marine (Coast)..................................... 265 10 123,750 121,149 46 45 119,250
Aviation (Ground).................................. 1,500 10 150,000 146,848 10 10 150,000
Amateur Vanity Call Signs.......................... 14,800 10 201,000 196,776 1.33 1.33 196,840
AM Class A \4a\.................................... 68 1 248,625 253,752 3,732 3,725 253,300
AM Class B \4b\.................................... 1,566 1 2,977,300 3,038,695 1,940 1,950 3,053,700
AM Class C \4c\.................................... 918 1 1,055,250 1,077,010 1,173 1,175 1,078,650
AM Class D \4d\.................................... 1,689 1 3,515,750 3,588,249 2,124 2,125 3,589,125
FM Classes A, B1 & C3 \4e\......................... 3,104 1 7,384,125 7,374,954 2,376 2,375 7,372,000
FM Classes B, C, C0, C1 & C2 \4f\.................. 3,129 1 9,076,725 9,285,549 2,968 2,975 9,308,775
AM Construction Permits............................ 112 1 42,800 43,683 390 390 43,680
FM Construction Permits \1\........................ 156 1 145,600 105,300 675 675 105,300
Satellite TV....................................... 126 1 161,925 165,264 1,312 1,300 163,800
Satellite TV Construction Permit................... 3 1 1,950 1,990 663 675 2,025
VHF Markets 1-10................................... 20 1 3,258,150 1,631,100 81,555 81,550 1,631,000
VHF Markets 11-25.................................. 27 1 3,330,250 1,708,429 63,275 63,275 1,708,425
VHF Markets 26-50.................................. 33 1 2,818,125 1,404,112 42,549 42,550 1,404,150
VHF Markets 51-100................................. 48 1 2,708,100 1,140,215 23,754 23,750 1,140,000
VHF Remaining Markets.............................. 122 1 1,190,000 747,235 6,125 6,125 747,250
VHF Construction Permits \1\....................... 3 1 17,850 18,375 6,125 6,125 18,375
[[Page 41942]]
UHF Markets 1-10................................... 117 1 2,109,750 3,776,478 32,278 32,275 3,775,175
UHF Markets 11-25.................................. 113 1 1,743,525 3,399,110 30,081 30,075 3,398,475
UHF Markets 26-50.................................. 154 1 1,468,500 2,908,952 18,889 18,900 2,910,600
UHF Markets 51-100................................. 245 1 1,246,400 2,828,382 11,544 11,550 2,829,750
UHF Remaining Markets.............................. 274 1 380,250 836,331 3,052 3,050 835,700
UHF Construction Permits \1\....................... 12 1 29,250 36,600 3,050 3,050 36,600
Broadcast Auxiliaries.............................. 27,500 1 275,000 280,671 10 10 275,000
LPTV/Translators/Boosters/Class A TV............... 3,400 1 1,380,000 1,408,457 414 415 1,411,000
CARS Stations...................................... 550 1 169,000 172,485 314 315 173,250
Cable TV Systems................................... 64,500,000 1 56,760,000 57,545,458 0.89218 0.89 57,405,000
Interstate Telecommunication Service Providers..... $43,300,000,000 1 160,056,000 151,290,200 0.00349400 0.00349 151,117,000
CMRS Mobile Services (Cellular/Public Mobile)...... 283,000,000 1 49,680,000 50,796,008 0.1795 0.18 50,940,000
CMRS Messag. Services.............................. 6,000,000 1 560,000 480,000 0.0800 0.080 480,000
BRS \2\ LMDS....................................... 1,660 1 552,000 514,600 310 310 514,600
510 1 107,200 158,100 310 310 158,100
Per 64 kbps Int'l Bearer Circuits Terrestrial 2,898,033 1 1,111,779 1,130,306 .390 .39 1,130,233
(Common) & Satellite (Common & Non-Common)........
Submarine Cable Providers (see chart in Appendix C) 34.13 1 7,818,040 7,983,656 233,919 233,925 7,983,860
\3\...............................................
Earth Stations..................................... 3,600 1 850,500 868,038 241 240 864,000
Space Stations (Geostationary)..................... 87 1 11,064,225 11,130,522 127,937 127,925 11,129,475
Space Stations (Non-Geostationary)................. 6 1 823,350 828,283 138,047 138,050 828,300
----------------------------------------------------------------------------------------------------
Total Estimated Revenue to be Collected........ ................. ........... 342,998,994 336,693,623 ............ ............ 336,712,213
----------------------------------------------------------------------------------------------------
Total Revenue Requirement...................... ................. ........... 341,875,000 335,794,000 ............ ............ 335,794,000
----------------------------------------------------------------------------------------------------
Difference..................................... ................. ........... 1,123,994 899,623 ............ ............ 918,213
--------------------------------------------------------------------------------------------------------------------------------------------------------
\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, para. 6 (2004).
\3\ The chart at the end of Appendix B 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.
\4\ The fee amounts listed in the column entitled ``Rounded New FY 2010 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
service. The actual FY 2010 regulatory fees for AM/FM radio station are listed on a grid located in Appendix B.
APPENDIX C
FY 2010 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)........... 25
218-219 MHz (Formerly Interactive Video Data 65
Service) (per 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 5
part 95)...........................................
Rural Radio (47 CFR part 22) (previously listed 20
under 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
[[Page 41943]]
Amateur Vanity Call Signs (per call sign) (47 CFR 1.33
part 97)...........................................
CMRS Mobile/Cellular Services (per unit) (47 CFR .18
parts 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 310
license) (47 CFR part 21)..........................
Local Multipoint Distribution Service (per call 310
sign) (47 CFR part 101)............................
AM Radio Construction Permits....................... 390
FM Radio Construction Permits....................... 675
TV (47 CFR part 73) VHF Commercial:
Markets 1-10.................................... 81,550
Markets 11-25................................... 63,275
Markets 26-50................................... 42,550
Markets 51-100.................................. 23,750
Remaining Markets............................... 6,125
Construction Permits............................ 6,125
TV (47 CFR part 73) UHF Commercial:
Markets 1-10.................................... 32,275
Markets 11-25................................... 30,075
Markets 26-50................................... 18,900
Markets 51-100.................................. 11,550
Remaining Markets............................... 3,050
Construction Permits............................ 3,050
Satellite Television Stations (All Markets)......... 1,300
Construction Permits--Satellite Television Stations. 675
Low Power TV, Class A TV, TV/FM Translators & 415
Boosters (47 CFR part 74)..........................
Broadcast Auxiliaries (47 CFR part 74).............. 10
CARS (47 CFR part 78)............................... 315
Cable Television Systems (per subscriber) (47 CFR .89
part 76)...........................................
Interstate Telecommunication Service Providers (per .00349
revenue dollar)....................................
Earth Stations (47 CFR part 25)..................... 240
Space Stations (per operational station in 127,925
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100)...............................................
Space Stations (per operational system in non- 138,050
geostationary orbit) (47 CFR part 25)..............
International Bearer Circuits--Terrestrial/ .39
Satellites (per 64 KB circuit).....................
International Bearer Circuits--Submarine Cable...... See Table Below
------------------------------------------------------------------------
FY 2010 Schedule of Regulatory Fees (continued)
FY 2010 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
FM Classes A, FM Classes B,
Population served AM Class A AM Class B AM Class C AM Class D B1 & C3 C, C0, 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
1,200,001-3,000,000..................................... 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 2010 Schedule of Regulatory Fees
International Bearer Circuits--Submarine Cable
------------------------------------------------------------------------
Submarine cable systems
(capacity as of December 31, Fee amount Address
2009)
------------------------------------------------------------------------
<2.5 Gbps...................... $14,625 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-9000
2.5 Gbps or greater, but less 29,250 FCC, International,
than 5 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000
5 Gbps or greater, but less 58,500 FCC, International,
than 10 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000
10 Gbps or greater, but less 116,975 FCC, International,
than 20 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000
[[Page 41944]]
20 Gbps or greater............. 233,950 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-9000
------------------------------------------------------------------------
APPENDIX D
Sources of Payment Unit Estimates for FY 2010
In order to calculate individual service fees for FY 2010, we
adjusted FY 2009 payment units for each service to more accurately
reflect expected FY 2010 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 sought verification for these estimates from multiple sources
and, in all cases; we compared FY 2010 estimates with actual FY 2009
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 with
sufficient accuracy. These include an unknown number of waivers and/
or exemptions that may occur in FY 2010 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 2010
payment units are based on FY 2009 actual payment units, it does not
necessarily mean that our FY 2010 projection is exactly the same
number as FY 2009. We have either rounded the FY 2010 number or
adjusted it slightly to account for these variables.
------------------------------------------------------------------------
Fee category Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, Based on Wireless Telecommunications
218-219 MHz, Marine (Ship & Bureau (``WTB'') projections of new
Coast), Aviation (Aircraft & applications and renewals taking into
Ground), GMRS, Amateur consideration existing Commission
Vanity Call Signs, Domestic licensee data bases. Aviation (Aircraft)
Public Fixed. 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
09 payment data.
CMRS Messaging Services...... Based on WTB reports, and FY 09 payment
data.
AM/FM Radio Stations......... Based on CDBS data, adjusted for
exemptions, and actual FY 2009 payment
units.
UHF/VHF Television Stations.. Based on CDBS data, adjusted for
exemptions, and actual FY 2009 payment
units.
AM/FM/TV Construction Permits Based on CDBS data, adjusted for
exemptions, and actual FY 2009 payment
units.
LPTV, Translators and Based on CDBS data, adjusted for
Boosters, Class A Television. exemptions, and actual FY 2009 payment
units.
Broadcast Auxiliaries........ Based on actual FY 2009 payment units.
BRS (formerly MDS/MMDS) LMDS. Based on WTB reports and actual FY 2009
payment units. Based on WTB reports and
actual FY 2009 payment units.
Cable Television Relay Based on data from Media Bureau's COALS
Service (``CARS'') Stations. database and actual FY 2009 payment
units.
Cable Television System Based on publicly available data sources
Subscribers. for estimated subscriber counts and
actual FY 2009 payment units.
Interstate Telecommunication Based on FCC Form 499-Q data for the four
Service Providers. quarters of calendar year 2009, the
Wireline Competition Bureau projected
the amount of calendar year 2009 revenue
that will be reported on 2010 FCC Form
499-A worksheets in April, 2010.
Earth Stations............... Based on International Bureau (``IB'')
licensing data and actual FY 2009
payment units.
Space Stations (GSOs & NGSOs) Based on IB data reports and actual FY
2009 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 database 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 2000 block centroids were
contained in the polygon. (A block centroid is the center point of a
small area containing population as computed by the U.S. Census
Bureau.) The sum of the population figures for all enclosed blocks
represents the total population for the predicted principal
community coverage area.
---------------------------------------------------------------------------
\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
[[Page 41945]]
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 2000 block centroids were
contained in the polygon. The sum of the population figures for all
enclosed blocks represents the total population for the predicted
principal community coverage area.
---------------------------------------------------------------------------
\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 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. Written public comments were sought on the FY
2010 fees proposal, including comments on the IRFA. This present
Final Regulatory Flexibility Analysis (``FRFA'') conforms to the
RFA.\2\
---------------------------------------------------------------------------
\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\ 5 U.S.C. 604.
---------------------------------------------------------------------------
I. Need for, and Objectives of, the Notice
2. This rulemaking proceeding was initiated for the Commission
to amend its Schedule of Regulatory Fees in the amount of
$335,794,000, 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.\3\ The
RFA generally defines the term ``small entity'' as having the same
meaning as the terms ``small business,'' ``small organization,'' and
``small governmental jurisdiction.''\4\ In addition, the term
``small business'' has the same meaning as the term ``small business
concern'' under the Small Business Act.\5\ 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.\6\
---------------------------------------------------------------------------
\3\ 5 U.S.C. 603(b)(3).
\4\ 5 U.S.C. 601(6).
\5\ 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.''
\6\ 15 U.S.C. 632.
---------------------------------------------------------------------------
5. Small Businesses. Nationwide, there are a total of
approximately 29.6 million small businesses, according to the
SBA.\7\
---------------------------------------------------------------------------
\7\ See SBA, Office of Advocacy, ``Frequently Asked Questions,''
http://web.sba.gov/faqs (accessed Jan. 2009).
---------------------------------------------------------------------------
6. Small Organizations. Nationwide, as of 2002, there are
approximately 1.6 million small organizations.\8\ A ``small
organization'' is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
\9\
---------------------------------------------------------------------------
\8\ Independent Sector, The New Nonprofit Almanac & Desk
Reference (2002).
\9\ 5 U.S.C. 601(4).
---------------------------------------------------------------------------
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 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
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
[[Page 41946]]
local resellers are small entities that may be affected by our
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 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 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 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
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
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 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).
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
[[Page 41947]]
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 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 ``1000
employees or more.''
---------------------------------------------------------------------------
22. Auctions. Initially, we note that, as a general matter, the
number of winning bidders that qualify as small businesses at the
close of an auction does not necessarily represent the number of
small businesses currently in service. Also, the Commission does not
generally track subsequent business size unless, in the context of
assignments or transfers, unjust enrichment issues are implicated.
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.''
\50\ Since 2007, the Census Bureau has placed wireless firms within
this new, broad, economic census category.\51\ Prior to that time,
such firms were within the now-superseded categories of ``Paging''
and ``Cellular and Other Wireless Telecommunications.'' \52\ Under
the present and prior categories, the SBA has deemed a wireless
business to be small if it has 1,500 or fewer employees.\53\ 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.\54\ Of
this total, 804 firms had employment of 999 or fewer employees, and
three firms had employment of 1,000 employees or more.\55\ 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.\56\ Of this total, 1,378 firms had employment of 999 or fewer
employees, and 19 firms had employment of 1,000 employees or
more.\57\ Thus, we estimate that the majority of wireless firms are
small.
---------------------------------------------------------------------------
\50\ 13 CFR 121.201, NAICS code 517212.
\51\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210
Wireless Telecommunications Categories (Except Satellite)''; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
\52\ 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.
\53\ 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).
\54\ 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).
\55\ 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.''
\56\ 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).
\57\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is for firms with ``1000
employees or more.''
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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.\58\ 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.\59\ The SBA has approved this
definition.\60\ An initial auction of Metropolitan Economic Area
(``MEA'') licenses was conducted in the year 2000. Of the 2,499
licenses auctioned, 985 were sold.\61\ Fifty-seven companies
claiming small business status won 440 licenses.\62\ A subsequent
auction of MEA and Economic Area (``EA'') licenses was held in the
year 2001. Of the 15,514 licenses auctioned, 5,323 were sold.\63\
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, was held in 2003. Seventy-seven bidders claiming small
or very small business status won 2,093 licenses.\64\
---------------------------------------------------------------------------
\58\ Revision of Part 22 and Part 90 of the Commission's Rules
to Facilitate Future Development of Paging Systems, Second Report
and Order, 12 FCC Rcd 2732, 2811-2812, paras. 178-181 (``Paging
Second Report and Order''); see also Revision of Part 22 and Part 90
of the Commission's Rules to Facilitate Future Development of Paging
Systems, Memorandum Opinion and Order on Reconsideration, 14 FCC Rcd
10030, 10085-10088, paras. 98-107 (1999).
\59\ Paging Second Report and Order, 12 FCC Rcd at 2811, para.
179.
\60\ 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'').
\61\ See ``929 and 931 MHz Paging Auction Closes,'' Public
Notice, 15 FCC Rcd 4858 (WTB 2000).
\62\ See id.
\63\ See ``Lower and Upper Paging Band Auction Closes,'' Public
Notice, 16 FCC Rcd 21821 (WTB 2002).
\64\ See ``Lower and Upper Paging Bands Auction Closes,'' Public
Notice, 18 FCC Rcd 11154 (WTB 2003). The current number of small or
very small business entities that hold wireless licenses may differ
significantly from the number of such entities that won in spectrum
auctions due to assignments and transfers of licenses in the
secondary market over time. In addition, some of the same small
business entities may have won licenses in more than one auction.
---------------------------------------------------------------------------
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.\65\ Of these, an
estimated 279 have 1,500 or fewer employees and two have more than
1,500 employees.\66\ We estimate that the majority of common carrier
paging providers would qualify as small entities under the SBA
definition.
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\65\ ``Trends in Telephone Service'' at Table 5.3.
\66\ ``Trends in Telephone Service'' at Table 5.3.
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26. 2.3 GHz 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.\67\ The SBA has approved these
definitions.\68\ The Commission auctioned geographic area licenses
in the WCS service. In the auction, which was conducted in 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.
---------------------------------------------------------------------------
\67\ 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).
\68\ See Alvarez Letter 1998.
---------------------------------------------------------------------------
27. 1670-1675 MHz Services. An auction for one license in the
1670-1675 MHz band was conducted in 2003. 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,
[[Page 41948]]
the SBA has developed a small business size standard for Wireless
Telecommunications Carriers (except Satellite).\69\ Under the SBA
small business size standard, a business is small if it has 1,500 or
fewer employees.\70\ According to Trends in Telephone Service data,
434 carriers reported that they were engaged in wireless
telephony.\71\ Of these, an estimated 222 have 1,500 or fewer
employees and 212 have more than 1,500 employees.\72\ We have
estimated that 222 of these are small under the SBA small business
size standard.
---------------------------------------------------------------------------
\69\ 13 CFR 121.201, NAICS code 517210.
\70\ Id.
\71\ ``Trends in Telephone Service'' at Table 5.3.
\72\ ``Trends in Telephone Service'' at Table 5.3.
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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.\73\ 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.\74\ These small business size standards, in the
context of broadband PCS auctions, have been approved by the
SBA.\75\ 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.\76\ In 1999, the Commission reauctioned 155
C, D, E, and F Block licenses; there were 113 small business winning
bidders.\77\
---------------------------------------------------------------------------
\73\ 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).
\74\ See PCS Report and Order, 11 FCC Rcd at 7852, para. 60.
\75\ See Alvarez Letter 1998.
\76\ FCC News, ``Broadband PCS, D, E and F Block Auction
Closes,'' No. 71744 (rel. Jan. 14, 1997).
\77\ See ``C, D, E, and F Block Broadband PCS Auction Closes,''
Public Notice, 14 FCC Rcd 6688 (WTB 1999).
---------------------------------------------------------------------------
30. In 2001, the Commission completed the auction of 422 C and F
Broadband PCS licenses in Auction 35. Of the 35 winning bidders in
this auction, 29 qualified as ``small'' or ``very small''
businesses.\78\ 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. In 2005, the Commission
completed an auction of 188 C block licenses and 21 F block licenses
in Auction 58. There were 24 winning bidders for 217 licenses.\79\
Of the 24 winning bidders, 16 claimed small business status and won
156 licenses. In 2007, the Commission completed an auction of 33
licenses in the A, C, and F Blocks in Auction 71.\80\ Of the 14
winning bidders, six were designated entities.\81\ In 2008, the
Commission completed an auction of 20 Broadband PCS licenses in the
C, D, E and F block licenses in Auction 78.\82\
---------------------------------------------------------------------------
\78\ See ``C and F Block Broadband PCS Auction Closes; Winning
Bidders Announced,'' Public Notice, 16 FCC Rcd 2339 (2001).
\79\ See ``Broadband PCS Spectrum Auction Closes; Winning
Bidders Announced for Auction No. 58,'' Public Notice, 20 FCC Rcd
3703 (2005).
\80\ See ``Auction of Broadband PCS Spectrum Licenses Closes;
Winning Bidders Announced for Auction No. 71,'' Public Notice, 22
FCC Rcd 9247 (2007).
\81\ Id.
\82\ See Auction of AWS-1 and Broadband PCS Licenses Rescheduled
For August 13, 2008, Notice of Filing Requirements, Minimum Opening
Bids, Upfront Payments and Other Procedures For Auction 78, Public
Notice, 23 FCC Rcd 7496 (2008) (``AWS-1 and Broadband PCS Procedures
Public Notice'').
---------------------------------------------------------------------------
31. Advanced Wireless Services. In 2006, the Commission
conducted its first auction of Advanced Wireless Services licenses
in the 1710-1755 MHz and 2110-2155 MHz bands (``AWS-1''), designated
as Auction 66.\83\ The Commission defined ``small business'' as an
entity with attributed average annual gross revenues that exceeded
$15 million and did not exceed $40 million for the preceding three
years.\84\ A small business received a 15 percent discount on its
winning bid.\85\ A ``very small business'' is defined as an entity
with attributed average annual gross revenues that did not exceed
$15 million for the preceding three years.\86\ A very small business
received a 25 percent discount on its winning bid.\87\ In Auction
66, thirty-one winning bidders identified themselves as very small
businesses and won 142 licenses.\88\ Twenty-six of the winning
bidders identified themselves as small businesses and won 73
licenses.\89\ In 2008, the Commission conducted an auction of AWS-1
licenses, designated as Auction 78, which offered 35 licenses for
which there were no winning bids in Auction 66.\90\ Four winning
bidders that identified themselves as very small businesses won 17
AWS-1 licenses.\91\ Three of the winning bidders that identified
themselves as a small business won five AWS-1 licenses.
---------------------------------------------------------------------------
\83\ See Auction of Advanced Wireless Services Licenses
Scheduled for June 29, 2006; Notice and Filing Requirements, Minimum
Opening Bids, Upfront Payments and Other Procedures for Auction No.
66, AU Docket No. 06-30, Public Notice, 21 FCC Rcd 4562 (2006)
(``Auction 66 Procedures Public Notice'');
\84\ 47 CFR 27.1102(a)(1).
\85\ See 47 CFR 1.2110(f)(2).
\86\ 47 CFR 27.1102(a)(2)
\87\ See 47 CFR 1.2110(f)(2).
\88\ See Auction of Advanced Wireless Services Licenses Closes;
Winning Bidders Announced for Auction No. 66, Public Notice, 21 FCC
Rcd 10,521 (2006) (``Auction 66 Closing Public Notice'')
\89\ See id.
\90\ See AWS-1 and Broadband PCS Procedures Public Notice, 23
FCC Rcd 7496. Auction 78 also included an auction of Broadband PCS
licenses.
\91\ See ``Auction of AWS-1 and Broadband PCS Licenses Closes,
Winning Bidders Announced for Auction 78, Down Payments Due
September 9, 2008, FCC Forms 601 and 602 Due September 9, 2008,
Final Payments Due September 23, 2008, Ten-Day Petition to Deny
Period'', Public Notice, 23 FCC Rcd 12749-65 (2008).
---------------------------------------------------------------------------
32. Narrowband Personal Communications Services. In 1994, the
Commission conducted an auction for Narrowband PCS licenses. A
second auction was also conducted later in 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.\92\ Through these auctions, the
Commission awarded a total of 41 licenses, 11 of which were obtained
by four small businesses.\93\ 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.\94\ 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.\95\ 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.\96\ The SBA has approved these small business size
standards.\97\ A third auction was conducted in 2001. Here, five
bidders won 317 (Metropolitan Trading Areas and nationwide)
licenses.\98\ Three of these claimed status as a small or very small
entity and won 311 licenses.
---------------------------------------------------------------------------
\92\ 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).
\93\ 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 (released 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 (released Nov. 9, 1994).
\94\ 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'').
\95\ Narrowband PCS Second Report and Order, 15 FCC Rcd at
10476, para. 40.
\96\ Id.
\97\ See Alvarez Letter 1998.
\98\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16
FCC Rcd 18663 (WTB 2001).
---------------------------------------------------------------------------
33. 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.\99\ 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.\100\ A ``very small business'' is defined
as an entity that, together with its affiliates and controlling
[[Page 41949]]
principals, has average gross revenues that are not more than $15
million for the preceding three years.\101\ 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.\102\ The SBA approved these small size standards.\103\
The Commission conducted an auction in 2002 of 740 licenses (one
license in each of the 734 MSAs/RSAs and one license in each of the
six Economic Area Groupings (EAGs)). 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.\104\ The Commission conducted a second auction in 2003
that included 256 licenses: 5 EAG licenses and 476 Cellular Market
Area licenses.\105\ 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.\106\ In 2005, the
Commission completed an auction of 5 licenses in the lower 700 MHz
band (Auction 60). There were three winning bidders for five
licenses. All three winning bidders claimed small business status.
---------------------------------------------------------------------------
\99\ 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'').
\100\ See Channels 52-59 Report and Order, 17 FCC Rcd at 1087-
88, para. 172.
\101\ See id.
\102\ See id, 17 FCC Rcd at 1088, para. 173.
\103\ See Letter from Aida Alvarez, Administrator, SBA, to
Thomas Sugrue, Chief, WTB, FCC (Aug. 10, 1999) (``Alvarez Letter
1999'').
\104\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
17 FCC Rcd 17272 (WTB 2002).
\105\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
18 FCC Rcd 11873 (WTB 2003).
\106\ See id.
---------------------------------------------------------------------------
34. In 2007, the Commission adopted the 700 MHz Second Report
and Order.\107\ The Order revised the band plan for the commercial
(including Guard Band) and public safety spectrum, adopted services
rules, including stringent build-out requirements, an open platform
requirement on the C Block, and a requirement on the D Block
licensee to construct and operate a nationwide, interoperable
wireless broadband network for public safety users. In 2008, the
Commission conducted Auction 73 which offered all available,
commercial 700 MHz Band licenses (1,099 licenses) for bidding using
the Commission's standard simultaneous multiple-round (``SMR'')
auction format for the A, B, D, and E block licenses and an SMR
auction design with hierarchical package bidding (``HPB'') for the C
Block licenses. A bidder with attributed average annual gross
revenues that did not exceed $15 million for the preceding three
years (very small business) qualified for a 25 percent discount on
its winning bids. A bidder with attributed average annual gross
revenues that exceeded $15 million, but did not exceed $40 million
for the preceding three years, qualified for a 15 percent discount
on its winning bids. At the conclusion of Auction 73, there were 36
winning bidders (who won 330 of the 1,090 licenses won) that
identified themselves as very small businesses.\108\ There were 20
winning bidders that identified themselves as a small business that
won 49 of the 1,090 licenses won.\109\ The provisionally winning
bids for the A, B, C, and E Block licenses exceeded the aggregate
reserve prices for those blocks. However, the provisionally winning
bid for the D Block license did not meet the applicable reserve
price and thus did not become a winning bid.\110\
---------------------------------------------------------------------------
\107\ Service Rules for the 698-746, 747-762 and 777-792 MHz
Band, 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 Telephone, 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 No. 03-264, Former Nextel Communications, Inc.
Upper700 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''), 22 FCC Rcd 15289 (2007).
\108\ See Auction of 700 MHz Band Licenses Closes, Winning
Bidders Announced for Auction 73, Down Payments Due April 3, 2008,
FCC Forms 601 and 602 April 3, 2008, Final Payment Due April 17,
2008, Ten-Day Petition to Deny Period, Public Notice, 23 FCC Rcd
4572 (2008).
\109\ Id. 23 FCC Rcd at 4572-73.
\110\ 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.\111\ 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.\112\ 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.\113\ SBA approval of
these definitions is not required.\114\ In 2000, the Commission
conducted an auction of 52 Major Economic Area (``MEA'')
licenses.\115\ 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 eight 700 MHz Guard
Band licenses commenced and closed in 2001. Of the three winning
bidders, one was a small business that won two of the eight
licenses.\116\
---------------------------------------------------------------------------
\111\ 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'').
\112\ See 746-764 MHz Band Second Report and Order, 15 FCC Rcd
at 5343, para. 108.
\113\ See id.
\114\ 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).
\115\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
\116\ 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
business bidding credits in auctions for Specialized Mobile Radio
(SMR) geographic area licenses in the 800 MHz and 900 MHz bands to
entities that had revenues of no more than $15 million in each of
the three previous calendar years.\117\ The Commission awards very
small business bidding credits to entities that had revenues of no
more than $3 million in each of the three previous calendar
years.\118\ The SBA has approved these small business size standards
for the 800 MHz and 900 MHz SMR Service.\119\ The Commission has
held auctions for geographic area licenses in the 800 MHz and 900
MHz bands. The 900 MHz SMR auction was completed in 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
was conducted in 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.\120\ A second auction for the 800 MHz band was conducted
in 2002 and included 23 BEA licenses. One bidder claiming small
business status won five licenses.\121\
---------------------------------------------------------------------------
\117\ 47 CFR 90.814(b)(1).
\118\ 47 CFR 90.814(b)(1).
\119\ See Alvarez Letter 1999.
\120\ 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).
\121\ 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 was conducted in 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.\122\ In an auction
completed in 2000, a total of 2,800 Economic Area licenses in the
lower 80 channels of the 800 MHz SMR service were awarded.\123\ Of
the 22 winning bidders, 19 claimed small business status and won 129
licenses. Thus, combining all three auctions, 40 winning bidders for
geographic
[[Page 41950]]
licenses in the 800 MHz SMR band claimed status as small business.
---------------------------------------------------------------------------
\122\ 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).
\123\ 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 1,500 or fewer employees.\124\ 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.
---------------------------------------------------------------------------
\124\ 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).\125\ This
category provides that a small business is a wireless company
employing no more than 1,500 persons.\126\ The Commission estimates
that most such licensees are small businesses under the SBA's small
business standard.
---------------------------------------------------------------------------
\125\ Id.
\126\ 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 licenses are assigned by auction, where mutually exclusive
applications are accepted. 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.\127\ This small business standard indicates
that a ``small business'' is an entity that, together with its
affiliates and controlling principals, has average gross revenues
not exceeding $15 million for the preceding three years.\128\ 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.\129\ The SBA has approved these small size standards.\130\ A
small business is eligible for a 25 percent discount on its winning
bid. A very small business is eligible for a 35 percent discount on
its winning bid. The first auction of Phase II licenses was
conducted in 1998.\131\ In the first auction, 908 licenses were
offered 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.\132\ Thirty-nine small businesses won 373 licenses in the
first 220 MHz auction. A second auction in 1999 included 225
licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies
claiming small business status won 158 licenses.\133\ 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.\134\ In 2007, the Commission conducted a fourth
auction of the 220 MHz licenses, designated as Auction 72.\135\
Auction 72 offered 94 Phase II 220 MHz Service licenses.\136\ In
this auction, five winning bidders won a total of 76 licenses.\137\
Two winning bidders identified themselves as very small businesses
won 56 of the 76 licenses. One of the winning bidders that
identified itself as a small business won 5 of the 76 licenses won.
---------------------------------------------------------------------------
\127\ 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).
\128\ Id. at 11068, para. 291.
\129\ Id.
\130\ See Letter from Aida Alvarez, Administrator, SBA, to
Daniel Phythyon, Chief, WTB, FCC (Jan. 6, 1998) (``Alvarez to
Phythyon Letter 1998'').
\131\ See generally ``220 MHz Service Auction Closes,'' Public
Notice, 14 FCC Rcd 605 (1998).
\132\ 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).
\133\ See ``Phase II 220 MHz Service Spectrum Auction Closes,''
Public Notice, 14 FCC Rcd 11218 (1999).
\134\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (2002).
\135\ See ``Auction of Phase II 220 MHz Service Spectrum
Scheduled for June 20, 2007, Notice and Filing Requirements, Minimum
Opening Bids, Upfront Payments and Other Procedures for Auction 72,
Public Notice, 22 FCC Rcd 3404 (2007).
\136\ Id.
\137\ See ``Auction of Phase II 220 MHz Service Spectrum
Licenses Closes, Winning Bidders Announced for Auction 72, Down
Payments due July 18, 2007, FCC Forms 601 and 602 due July 18, 2007,
Final Payments due August 1, 2007, Ten-Day Petition to Deny Period,
Public Notice, 22 FCC Rcd 11573 (2007).
---------------------------------------------------------------------------
41. Cellular Radiotelephone Service. Auction 77 was held to
resolve one group of mutually exclusive applications for Cellular
Radiotelephone Service licenses for unserved areas in New
Mexico.\138\ Bidding credits for designated entities were not
available in Auction 77.\139\ In 2008, the Commission completed the
closed auction of one unserved service area in the Cellular
Radiotelephone Service, designated as Auction 77. Auction 77
concluded with one provisionally winning bid for the unserved area
totaling $25,002.\140\
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\138\ See Closed Auction of Licenses for Cellular Unserved
Service Area Scheduled for June 17, 2008, Notice and Filing
Requirements, Minimum Opening Bids, Upfront Payments, and Other
Procedures for Auction 77, Public Notice, 23 FCC Rcd 6670 (2008).
\139\ Id. at 6685.
\140\ See Auction of Cellular Unserved Service Area License
Closes, Winning Bidder Announced for Auction 77, Down Payment due
July 2, 2008, Final Payment due July 17, 2008, Public Notice, 23 FCC
Rcd 9501 (2008).
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42. 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.\141\ 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.\142\
---------------------------------------------------------------------------
\141\ See 13 CFR 121.201, NAICS code 517210.
\142\ See generally 13 CFR 121.201.
---------------------------------------------------------------------------
43. As of March 2010, there were 424,162 PLMR licensees
operating 921,909 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 any revised rules in this context
could therefore potentially impact small entities covering a great
variety of industries.
44. Fixed Microwave Services. Fixed microwave services include
common carrier,\143\ private operational-fixed,\144\ and broadcast
auxiliary radio services.\145\ 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
[[Page 41951]]
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.\146\ 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.
---------------------------------------------------------------------------
\143\ See 47 CFR 101 et seq. for common carrier fixed microwave
services (except Multipoint Distribution Service).
\144\ 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.
\145\ 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.
\146\ 13 CFR 121.201, NAICS code 517210.
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45. 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.\147\ 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.\148\ The SBA has approved these small business size
standards.\149\ The auction of the 2,173, 39 GHz licenses was
conducted in 2000. The 18 bidders who claimed small business status
won 849 licenses.
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\147\ 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).
\148\ Id.
\149\ 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).
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46. 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.\150\ The auction of the 986 LMDS licenses began
and closed in 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.\151\ 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.\152\ The SBA has approved
these small business size standards in the context of LMDS
auctions.\153\ 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. In 1999, the Commission re-auctioned 161 licenses;
there were 32 small and very small businesses that won 119 licenses.
---------------------------------------------------------------------------
\150\ See Rulemaking to Amend Parts 1, 2, 21, 25, of the
Commission's Rules to Redesignate the 27.5-29.5 GHz Frequency Band,
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and
Policies for Local Multipoint Distribution Service and for Fixed
Satellite Services, Second Report and Order, Order on
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC
Rcd 12545, 12689-90, para. 348 (1997) (``LMDS Second Report and
Order'').
\151\ See LMDS Second Report and Order, 12 FCC Rcd at 12689-90,
para. 348.
\152\ See id.
\153\ See Alvarez to Phythyon Letter 1998.
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47. 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'').\154\ Of the 594 licenses,
567 were won by 167 entities qualifying as a small business. For
that auction, the Commission defined a small business as an entity
that, together with its affiliates, has no more than a $6 million
net worth and, after federal income taxes (excluding any carry over
losses), has no more than $2 million in annual profits each year for
the previous two years.\155\ 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.\156\ 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.\157\ The SBA has approved of these
definitions.\158\
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\154\ See ``Interactive Video and Data Service (IVDS)
Applications Accepted for Filing,'' Public Notice, 9 FCC Rcd 6227
(1994).
\155\ Implementation of Section 309(j) of the Communications
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330
(1994).
\156\ 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).
\157\ Id.
\158\ See Alvarez to Phythyon Letter 1998.
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48. 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.\159\ 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.\160\ These definitions have been approved by
the SBA.\161\ An auction for LMS licenses was conducted in 1999. Of
the 528 licenses auctioned, 289 licenses were sold to four small
businesses.
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\159\ Amendment of Part 90 of the Commission's Rules to Adopt
Regulations for Automatic Vehicle Monitoring Systems, Second Report
and Order, 13 FCC Rcd 15182, 15192, para 20 (1998) (``Automatic
Vehicle Monitoring Systems Second Report and Order''); see also 47
CFR 90.1103.
\160\ Automatic Vehicle Monitoring Systems Second Report and
Order, 13 FCC Rcd at 15192, para. 20; see also 47 CFR 90.1103.
\161\ See Alvarez Letter 1998.
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49. Rural Radiotelephone Service. The Commission has not adopted
a size standard for small businesses specific to the Rural
Radiotelephone Service.\162\ A significant subset of the Rural
Radiotelephone Service is the Basic Exchange Telephone Radio System
(``BETRS'').\163\ 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.\164\ 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 our action.
---------------------------------------------------------------------------
\162\ The service is defined in 22.99 of the Commission's rules,
47 CFR 22.99.
\163\ BETRS is defined in 22.757 and 22.759 of the Commission's
rules, 47 CFR 22.757 and 22.759.
\164\ 13 CFR 121.201, NAICS code 517210.
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50. Air-Ground Radiotelephone Service.\165\ 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.\166\ 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.\167\ 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.\168\ These
definitions were approved by the SBA.\169\ In 2006, the
[[Page 41952]]
Commission completed an auction of nationwide commercial Air-Ground
Radiotelephone Service licenses in the 800 MHz band (Auction 65).
The auction closed with two winning bidders winning two Air-Ground
Radiotelephone Services licenses. Neither of the winning bidders
claimed small business status.
---------------------------------------------------------------------------
\165\ The service is defined in 22.99 of the Commission's rules,
47 CFR 22.99.
\166\ 13 CFR 121.201, NAICS codes 517210.
\167\ 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, paras. 28-42 (2005).
\168\ Id.
\169\ 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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51. Aviation and Marine Radio Services. There are approximately
26,162 aviation, 34,555 marine (ship), and 3,296 marine (coast)
licensees.\170\ 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.\171\ 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.\172\ In 1998, the Commission held an auction
of 42 VHF Public Coast licenses in the 157.1875-157.4500 MHz (ship
transmit) and 161.775-162.0125 MHz (coast transmit) bands. For this
auction, the Commission defined a ``small'' business as an entity
that, together with controlling interests and affiliates, has
average gross revenues for the preceding three years not to exceed
$15 million. In addition, a ``very small'' business is one that,
together with controlling interests and affiliates, has average
gross revenues for the preceding three years not to exceed $3
million.\173\ Further, the Commission made available Automated
Maritime Telecommunications System (``AMTS'') licenses in Auctions
57 and 61.\174\ Winning bidders could claim status as a 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.\175\ 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.
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\170\ 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).
\171\ 13 CFR 121.201, NAICS code 517210.
\172\ A licensee may have a license in more than one category.
\173\ 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).
\174\ 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).
\175\ 47 CFR 80.1252.
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52. 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.\176\ There is
presently 1 licensee in this service. We do not have information
whether that licensee would qualify as small under the SBA's small
business size standard for Wireless Telecommunications Carriers
(except Satellite) services.\177\ Under that SBA small business size
standard, a business is small if it has 1,500 or fewer
employees.\178\
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\176\ This service is governed by Subpart I of Part 22 of the
Commission's rules. See 47 CFR 22.1001-22.1037.
\177\ 13 CFR 121.201, NAICS code 517210.
\178\ Id.
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53. 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. The Commission defines a small business for
MAS licenses as an entity that has average gross revenues of less
than $15 million in the three previous calendar years.\179\ A 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.\180\ The SBA has approved
these definitions.\181\ 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 March 5, 2010, there were over 11,500 MAS station authorizations.
In addition, an auction for 5,104 MAS licenses in 176 EAs was
conducted in 2001.\182\ Seven winning bidders claimed status as
small or very small businesses and won 611 licenses. In 2005, the
Commission completed an auction (Auction 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.
---------------------------------------------------------------------------
\179\ See Amendment of the Commission's Rules Regarding Multiple
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, para.
123 (2000).
\180\ Id.
\181\ See Alvarez Letter 1999.
\182\ See ``Multiple Address Systems Spectrum Auction Closes,''
Public Notice, 16 FCC Rcd 21011 (2001).
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54. With respect to 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.\183\ 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.
---------------------------------------------------------------------------
\183\ See 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------
55. 1.4 GHz Band Licensees. The Commission conducted an auction
of 64 1.4 GHz band licenses \184\ in 2007.\185\ 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.\186\ Neither of the two winning bidders
sought designated entity status.\187\
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\184\ See ``Auction of 1.4 GHz Bands Licenses Scheduled for
February 7, 2007,'' Public Notice, 21 FCC Rcd 12393 (WTB 2006).
\185\ 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'').
\186\ Auction No. 69 Closing PN, Attachment C.
\187\ See Auction No. 69 Closing PN.
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56. 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.\188\ 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 \189\ 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 our action.
---------------------------------------------------------------------------
\188\ 13 CFR 121.201, NAICS code 517210.
\189\ 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.
---------------------------------------------------------------------------
57. 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
[[Page 41953]]
$15 million.\190\ ``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.\191\ The SBA has approved these
definitions.\192\ In a 2004 auction of 24 GHz licenses, three
winning bidders won seven licenses. Two of the winning bidders were
very small businesses that won five licenses.
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\190\ Amendments to Parts 1, 2, 87 and 101 of the Commission's
Rules To License Fixed Services at 24 GHz, Report and Order, 15 FCC
Rcd 16934, 16967, para. 77 (2000) (``24 GHz Report and Order''); see
also 47 CFR 101.538(a)(2).
\191\ 24 GHz Report and Order, 15 FCC Rcd at 16967, para. 77;
see also 47 CFR 101.538(a)(1).
\192\ See Letter from Gary M. Jackson, Assistant Administrator,
SBA, to Margaret W. Wiener, Deputy Chief, Auctions and Industry
Analysis Division, WTB, FCC (July 28, 2000).
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58. Broadband Radio Service and Educational Broadband 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'')).\193\ 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.\194\ 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.\195\ 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. The Commission has adopted three levels of
bidding credits for BRS: (i) a bidder with attributed average annual
gross revenues that exceed $15 million and do not exceed $40 million
for the preceding three years (small business) will receive a 15
percent discount on its winning bid; (ii) a bidder with attributed
average annual gross revenues that exceed $3 million and do not
exceed $15 million for the preceding three years (very small
business) will receive a 25 percent discount on its winning bid; and
(iii) a bidder with attributed average annual gross revenues that do
not exceed $3 million for the preceding three years (entrepreneur)
will receive a 35 percent discount on its winning bid.\196\ In 2009,
the Commission conducted Auction 86, which offered 78 BRS
licenses.\197\ Auction 86 concluded with the sale of 61
licenses.\198\ Of the ten winning bidders, three bidders that
claimed small business status won 7 licenses, and two bidders that
claimed entrepreneur status won six licenses.
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\193\ Amendment of Parts 21 and 74 of the Commission's Rules
with Regard to Filing Procedures in the Multipoint Distribution
Service and in the Instructional Television Fixed Service and
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, MM Docket No. 94-131 and PP Docket No. 93-253,
Report and Order, 10 FCC Rcd 9589, 9593, para. 7 (1995) (``MDS
Auction R&O'').
\194\ 47 CFR 21.961(b)(1).
\195\ 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.
\196\ Id. at 8296.
\197\ Auction of Broadband Radio Service (BRS) Licenses,
Scheduled for October 27, 2009, Notice and Filing Requirements,
Minimum Opening Bids, Upfront Payments, and Other Procedures for
Auction 86, Public Notice, 24 FCC Rcd 8277 (2009).
\198\ Auction of Broadband Radio Service Licenses Closes,
Winning Bidders Announced for Auction 86, Down Payments Due November
23, 2009, Final Payments Due December 8, 2009, Ten-Day Petition to
Deny Period, Public Notice, 24 FCC Rcd 13572 (2009).
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59. 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.\199\ 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 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.'' \200\ 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.\201\ 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.\202\ 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.\203\ Thus, the majority of these firms can be considered
small.
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\199\ 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.
\200\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\201\ 13 CFR 121.201, NAICS code 517110.
\202\ 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).
\203\ Id. An additional 61 firms had annual receipts of $25
million or more.
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60. 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.'' \204\ The SBA has created
the following small business size standard for Television
Broadcasting firms: Those having $14 million or less in annual
receipts.\205\ The Commission has estimated the number of licensed
commercial television stations to be 1,395.\206\ 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 1,395 commercial television stations (or
approximately 72 percent) had revenues of $13 million or less.\207\
We therefore estimate that the majority of commercial television
broadcasters are small entities.
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\204\ U.S. Census Bureau, 2007 NAICS Definitions, ``515120
Television Broadcasting'' (partial definition); http://www.census.gov/naics/2007/def/ND515120.HTM#N515120.
\205\ 13 CFR 121.201, NAICS code 515120 (updated for inflation
in 2008).
\206\ See FCC News Release, ``Broadcast Station Totals as of
June 30, 2009,'' dated September 4, 2009; http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
\207\ We recognize that BIA's estimate differs slightly from the
FCC total given supra.
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61. We note, however, that in assessing whether a business
concern qualifies as small under the above definition, business
(control) affiliations \208\ 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.
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\208\ ``[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).
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62. In addition, the Commission has estimated the number of
licensed
[[Page 41954]]
noncommercial educational (NCE) television stations to be 390.\209\
These stations are non-profit, and therefore considered to be small
entities.\210\
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\209\ See FCC News Release, ``Broadcast Station Totals as of
June 30, 2009,'' dated September 4, 2009; http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
\210\ See generally 5 U.S.C. 601(4), (6).
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63. In addition, there are also 2,386 low power television
stations (LPTV).\211\ Given the nature of this service, we will
presume that all LPTV licensees qualify as small entities under the
above SBA small business size standard.
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\211\ See FCC News Release, ``Broadcast Station Totals as of
June 30, 2009,'' dated September 4, 2009; http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
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64. 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.''
\212\ The SBA has established a small business size standard for
this category, which is: Such firms having $7 million or less in
annual receipts.\213\ 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.
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\212\ U.S. Census Bureau, 2007 NAICS Definitions, ``515112 Radio
Stations''; http://www.census.gov/naics/2007/def/ND515112.HTM#N515112.
\213\ 13 CFR 121.201, NAICS code 515112 (updated for inflation
in 2008).
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65. We note, however, that in assessing whether a business
concern qualifies as small under the above size standard, business
affiliations must be included.\214\ In addition, to be determined to
be a ``small business,'' the entity may not be dominant in its field
of operation.\215\ 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.
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\214\ ``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).
\215\ 13 CFR 121.102(b) (an SBA regulation).
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66. 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.\216\
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\216\ 13 CFR 121.201, NAICS codes 515112 and 515120.
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67. The Commission estimates that there are approximately 5,618
FM translators and boosters.\217\ 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.\218\
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\217\ See supra note 242.
\218\ See 15 U.S.C. 632.
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68. 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.'' \219\ 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.\220\ 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.\221\ 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.\222\ Thus, the
majority of these firms can be considered small.
---------------------------------------------------------------------------
\219\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\220\ 13 CFR 121.201, NAICS code 517110.
\221\ 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).
\222\ Id. An additional 61 firms had annual receipts of $25
million or more.
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69. 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.\223\ Industry data indicate that, of 1,076 cable
operators nationwide, all but eleven are small under this size
standard.\224\ In addition, under the Commission's rules, a ``small
system'' is a cable system serving 15,000 or fewer subscribers.\225\
Industry data indicate that, of 6,635 systems nationwide, 5,802
systems have under 10,000 subscribers, and an additional 302 systems
have 10,000-19,999 subscribers.\226\ Thus, under this second size
standard, most cable systems are small.
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\223\ 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).
\224\ 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.
\225\ 47 CFR 76.901(c).
\226\ Warren Communications News, Television & Cable Factbook
2008, ``U.S. Cable Systems by Subscriber Size,'' page F-2 (data
current as of Oct. 2007). The data do not include 851 systems for
which classifying data were not available.
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70. 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.'' \227\ 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.\228\ Industry data indicate that, of 1,076 cable
operators nationwide, all but ten are small under this size
standard.\229\ 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,\230\ and therefore we are unable to estimate more
accurately the number of cable system operators that would qualify
as small under this size standard.
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\227\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
\228\ 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).
\229\ 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.
\230\ 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 76.901(f) of the Commission's rules. See 47 CFR
76.909(b).
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71. 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
[[Page 41955]]
carriers.\231\ The OVS framework provides opportunities for the
distribution of video programming other than through cable systems.
Because OVS operators provide subscription services,\232\ OVS falls
within the SBA small business size standard covering cable services,
which is ``Wired Telecommunications Carriers.'' \233\ 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.\234\ 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.\235\ 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.\236\ 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.\237\ Broadband service providers (``BSPs'')
are currently the only significant holders of OVS certifications or
local OVS franchises.\238\ 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.
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\231\ 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 para. 135
(2009) (``Thirteenth Annual Cable Competition Report'').
\232\ See 47 U.S.C. 573.
\233\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers''; http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\234\ 13 CFR 121.201, NAICS code 517110.
\235\ 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).
\236\ Id. An additional 61 firms had annual receipts of $25
million or more.
\237\ A list of OVS certifications may be found at http://www.fcc.gov/mb/ovs/csovscer.html.
\238\ See Thirteenth Annual Cable Competition Report, 24 FCC Rcd
at 606-07 para. 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.
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72. 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.'' \239\ 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.\240\ 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.\241\ Of this total, 1,087 firms had
annual receipts of under $10 million, and 43 firms had receipts of
$10 million or more but less than $25 million.\242\ Thus, the
majority of these firms can be considered small.
---------------------------------------------------------------------------
\239\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\240\ 13 CFR 121.201, NAICS code 517110.
\241\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510 (issued November 2005).
\242\ Id. An additional 61 firms had annual receipts of $25
million or more.
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73. 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.\243\ These definitions were approved
by the SBA.\244\ 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.\245\ 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.\246\
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\243\ Amendment of Parts 2 and 25 of the Commission's Rules to
Permit Operation of NGSO FSS Systems Co-Frequency with GSO and
Terrestrial Systems in the Ku-Band Frequency Range; Amendment of the
Commission's Rules to Authorize Subsidiary Terrestrial Use of the
12.2-12.7 GHz Band by Direct Broadcast Satellite Licenses and their
Affiliates; and Applications of Broadwave USA, PDC Broadband
Corporation, and Satellite Receivers, Ltd. to provide A Fixed
Service in the 12.2-12.7 GHz Band, ET Docket No. 98-206, Memorandum
Opinion and Order and Second Report and Order, 17 FCC Rcd 9614,
9711, para. 252 (2002).
\244\ 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).
\245\ See ``Multichannel Video Distribution and Data Service
Auction Closes,'' Public Notice, 19 FCC Rcd 1834 (2004).
\246\ See ``Auction of Multichannel Video Distribution and Data
Service Licenses Closes; Winning Bidders Announced for Auction No.
63,'' Public Notice, 20 FCC Rcd 19807 (2005).
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74. Amateur Radio Service. These licensees are held by
individuals in a noncommercial capacity; these licensees are not
small entities.
75. 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.\247\ 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.\248\ 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.
---------------------------------------------------------------------------
\247\ 13 CFR 121.201, NAICS code 517210.
\248\ Amendment of the Commission's Rules Concerning Maritime
Communications, Third Report and Order and Memorandum Opinion and
Order, 13 FCC Rcd 19853 (1998).
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76. 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.\249\ 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''),
[[Page 41956]]
Low Power Radio Service (``LPRS''), and Multi-Use Radio Service
(``MURS'').\250\ 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.\251\ 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 our action.
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\249\ 47 CFR Part 90.
\250\ 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.
\251\ 13 CFR 121.201, NAICS Code 517210.
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77. Public Safety Radio Services. Public Safety radio services
include police, fire, local government, forestry conservation,
highway maintenance, and emergency medical services.\252\ There are
a total of approximately 127,540 licensees in these services.
Governmental entities \253\ 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.\254\
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\252\ With the exception of the special emergency service, these
services are governed by Subpart B of part 90 of the Commission's
rules, 47 CFR 90.15-90.27. The police service includes approximately
27,000 licensees that serve state, county, and municipal enforcement
through telephony (voice), telegraphy (code) and teletype and
facsimile (printed material). The fire radio service includes
approximately 23,000 licensees comprised of private volunteer or
professional fire companies as well as units under governmental
control. The local government service that is presently comprised of
approximately 41,000 licensees that are state, county, or municipal
entities that use the radio for official purposes not covered by
other public safety services. There are approximately 7,000
licensees within the forestry service which is comprised of
licensees from state departments of conservation and private forest
organizations who set up communications networks among fire lookout
towers and ground crews. The approximately 9,000 state and local
governments are licensed to highway maintenance service provide
emergency and routine communications to aid other public safety
services to keep main roads safe for vehicular traffic. The
approximately 1,000 licensees in the Emergency Medical Radio Service
(``EMRS'') use the 39 channels allocated to this service for
emergency medical service communications related to the delivery of
emergency medical treatment. 47 CFR 90.15-90.27. The approximately
20,000 licensees in the special emergency service include medical
services, rescue organizations, veterinarians, handicapped persons,
disaster relief organizations, school buses, beach patrols,
establishments in isolated areas, communications standby facilities,
and emergency repair of public communications facilities. 47 CFR
90.33-90.55.
\253\ 47 CFR 1.1162.
\254\ 5 U.S.C. 601(5).
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78. Internet Service Providers. The 2007 Economic Census places
these firms, whose services might include voice over Internet
protocol (VoIP), in either of two categories, depending on whether
the service is provided over the provider's own telecommunications
connections (e.g. cable and DSL, ISPs), or over client-supplied
telecommunications connections (e.g. dial-up ISPs). The former are
within the category of Wired Telecommunications Carriers,\255\ which
has an SBA small business size standard of 1,500 or fewer
employees.\256\ The latter are within the category of All Other
Telecommunications,\257\ which has a size standard of annual
receipts of $25 million or less.\258\ The most current Census Bureau
data for all such firms, however, are the 2002 data for the previous
census category called Internet Service Providers.\259\ That
category had a small business size standard of $21 million or less
in annual receipts, which was revised in late 2005 to $23 million.
The 2002 data show that there were 2,529 such firms that operated
for the entire year.\260\ 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.\261\ Consequently, we estimate
that the majority of ISP firms are small entities.
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\255\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'', http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\256\ 13 CFR 121.201, NAICS code 517110 (updated for inflation
in 2008).
\257\ U.S. Census Bureau, 2007 NAICS Definitions, ``517919 All
Other Telecommunications''; http://www.census.gov/naics/2007/def/ND517919.HTM#N517919.
\258\ 13 CFR 121.201, NAICS code 517919 (updated for inflation
in 2008).
\259\ U.S. Census Bureau, ``2002 NAICS Definitions, ``518111
Internet Service Providers''; http://www.census.gov/eped/naics02/def/NDEF518.HTM.
\260\ 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).
\261\ An additional 45 firms had receipts of $25 million or
more.
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79. The ISP industry has changed dramatically since 2002. The
2002 data cited above may therefore include entities that no longer
provide Internet access service and may exclude entities that now
provide such service. To ensure that this (IRFA/FRFA) describes the
universe of small entities that our action might affect, we discuss
in turn several different types of entities that might be providing
Internet access service.
80. We note that, although we have no specific information on
the number of small entities that provide Internet access service
over unlicensed spectrum, we include these entities in our IRFA/
FRFA.
IV. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
81. 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 electronically an FCC
Form 159 Remittance Advice, and pay a regulatory fee based on the
number of licenses or call signs.\262\ Interstate telephone service
providers must compute their annual regulatory fee based on their
interstate and international end-user revenue using information they
already supply to the Commission in compliance with the Form 499-A,
Telecommunications Reporting Worksheet, and they must complete and
submit electronically 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 when they complete electronically and submit the 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
electronic FCC Form 159, and it can be completed by the employees
responsible for an entity's business records.
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\262\ 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.
---------------------------------------------------------------------------
82. As discussed previously in this Order, the Commission
concluded in its FY 2009 regulatory fee cycle that 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 during the
regulatory fee cycle. 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
[[Page 41957]]
those payments that are simply mailed in with a hardcopy Form 159.
83. 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.\263\ If payment is not received, new
or pending applications may be dismissed, and existing
authorizations may be subject to rescission.\264\ 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.\265\ Nonpayment of regulatory fees is a debt owed to
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.\266\
---------------------------------------------------------------------------
\263\ 47 CFR 1.1164.
\264\ 47 CFR 1.1164(c).
\265\ Public Law 104-134, 110 Stat. 1321 (1996).
\266\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------
84. 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.\267\
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 (e.g. 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.
---------------------------------------------------------------------------
\267\ 47 CFR 1.1166.
---------------------------------------------------------------------------
V. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
85. 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, among others: (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.\268\ In our 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.
---------------------------------------------------------------------------
\268\ 5 U.S.C. 603.
---------------------------------------------------------------------------
86. 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
87. 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.\269\ 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.\270\
---------------------------------------------------------------------------
\269\ 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.
\270\ See 5 U.S.C. 604(b).
---------------------------------------------------------------------------
APPENDIX G
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 (U.S.
Fee category $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) 40.
(47 CFR part 90).
Microwave (per license) (47 CFR part 30.
101).
218-219 MHz (Formerly Interactive 65.
Video Data Service) (per license) (47
CFR part 95).
Marine (Ship) (per station) (47 CFR 10.
part 80).
Marine (Coast) (per license) (47 CFR 45.
part 80).
General Mobile Radio Service (per 5.
license) (47 CFR part 95).
Rural Radio (47 CFR part 22) 20.
(previously listed under the Land
Mobile category).
PLMRS (Shared Use) (per license) (47 20.
CFR part 90).
Aviation (Aircraft) (per station) (47 5.
CFR part 87).
Aviation (Ground) (per license) (47 10.
CFR part 87).
Amateur Vanity Call Signs (per call 1.34.
sign) (47 CFR part 97).
CMRS Mobile/Cellular Services (per .18.
unit) (47 CFR parts 20, 22, 24, 27,
80 and 90).
CMRS Messaging Services (per unit) (47 .08.
CFR parts 20, 22, 24 and 90).
Broadband Radio Service (formerly MMDS/ 320.
MDS) (per license) (47 CFR part 21).
Local Multipoint Distribution Service 320.
(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 1,275.
Markets).
[[Page 41958]]
Construction Permits--Satellite 650.
Television Stations.
Low Power TV, Class A TV, TV/FM 400.
Translators & Boosters (47 CFR part
74).
Broadcast Auxiliaries (47 CFR part 74) 10.
CARS (47 CFR part 78)................. 260.
Cable Television Systems (per .88.
subscriber) (47 CFR part 76).
Interstate Telecommunication Service .00342.
Providers (per revenue dollar).
Earth Stations (47 CFR part 25)....... 210.
Space Stations (per operational 127,175.
station in geostationary orbit) (47
CFR part 25) also includes DBS
Service (per operational station) (47
CFR part 100).
Space Stations (per operational system 137,225.
in non-geostationary orbit) (47 CFR
part 25).
International Bearer Circuits-- .75.
Terrestrial/Satellites (per 64KB
circuit).
International Bearer Circuits-- See Table Below.
Submarine Cable.
------------------------------------------------------------------------
FY 2009 Schedule of Regulatory Fees (continued)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FM Classes A, FM Classes B,
Population served AM Class A AM Class B AM Class C AM Class D B1 & C3 C, C0, 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.
------------------------------------------------------------------------
APPENDIX H
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), 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.
----------------------------------------------------------------------------------------------------------------
Exclusive use services (per
license) Fee amount \1\ Address
----------------------------------------------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz
and 220 MHz Local, Base
Station & SMRS) (47 CFR, Part
90)
(a) New, Renew/Mod (FCC $40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
601 & 159).
(b) New, Renew/Mod 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
(c) Renewal Only (FCC 601 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
& 159).
(d) Renewal Only 40.00 FCC; P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
220 MHz Nationwide
(a) New, Renew/Mod (FCC 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
601 & 159).
(b) New, Renew/Mod 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
(c) Renewal Only (FCC 601 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
& 159).
(d) Renewal Only 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
2. Microwave (47 CFR Pt. 101)
(Private)
(a) New, Renew/Mod (FCC 25.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
601 & 159).
(b) New, Renew/Mod 25.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
(c) Renewal Only (FCC 601 25.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
& 159).
[[Page 41959]]
(d) Renewal Only 25.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
3. 218-219 MHz Service
(a) New, Renew/Mod (FCC 65.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
601 & 159).
(b) New, Renew/Mod 65.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
(c) Renewal Only (FCC 601 65.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
& 159).
(d) Renewal Only 65.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
4. Shared Use Services
Land Mobile (Frequencies Below
470 MHz--except 220 MHz)
(a) New, Renew/Mod (FCC 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
601 & 159).
(b) New, Renew/Mod 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
(c) Renewal Only (FCC 601 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
& 159).
(d) Renewal Only 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
General Mobile Radio Service
(a) New, Renew/Mod (FCC 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
605 & 159).
(b) New, Renew/Mod 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
605 & 159).
(c) Renewal Only (FCC 605 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
& 159).
(d) Renewal Only 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
605 & 159).
Rural Radio (Part 22)
(a) New, Additional 20.00 FCC, P.O. Box 979097, St. Louis, MO, 63197-9000.
Facility, Major Renew/Mod
(Electronic Filing) (FCC
601 & 159).
(b) Renewal, Minor Renew/ 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Mod (Electronic Filing)
(FCC 601 & 159).
Marine Coast
(a) New Renewal/Mod (FCC 45.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
601 & 159).
(b) New, Renewal/Mod 45.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
(c) Renewal Only (FCC 601 45.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
& 159).
(d) Renewal Only 45.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
Aviation Ground
(a) New, Renewal/Mod (FCC 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
601 & 159).
(b) New, Renewal/Mod 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
601 & 159).
(c) Renewal Only (FCC 601 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
& 159).
(d) Renewal Only 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Only) (FCC
601 & 159).
Marine Ship
(a) New, Renewal/Mod (FCC 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
605 & 159).
(b) New, Renewal/Mod 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
605 & 159).
(c) Renewal Only (FCC 605 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
& 159).
(d) Renewal Only 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
605 & 159).
Aviation Aircraft
(a) New, Renew/Mod (FCC 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
605 & 159).
(b) New, Renew/Mod 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
605 & 159).
(c) Renewal Only (FCC 605 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
& 159).
(d) Renewal Only 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
605 & 159).
5. Amateur Vanity Call Signs
(a) Initial or Renew (FCC 1.33 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
605 & 159).
(b) Initial or Renew 1.33 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC
605 & 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 310 FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
(formerly MMDS and MDS).
9. Local Multipoint 310 FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
Distribution Service.
----------------------------------------------------------------------------------------------------------------
\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 1.1102.
\2\ These are standard fees that are to be paid in accordance with 1.1157(b).
\3\ These are standard fees that are to be paid in accordance with 1.1157(b).
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.
------------------------------------------------------------------------
Radio [AM and FM] (47 CFR, Part
73) Fee amount Address
------------------------------------------------------------------------
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 4,400
population.
1,200,001-3,000,000 6,750
population.
>3,000,000 population...... 8,100
2. AM Class B:
[[Page 41960]]
<=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 3,500
population.
1,200,001-3,000,000 5,400
population.
>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 2,500
population.
1,200,001-3,000,000 3,750
population.
>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 2,875
population.
1,200,001-3,000,000 4,600
population.
>3,000,000 population...... 5,750
5. AM Construction Permit...... 390 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 4,450
population.
1,200,001-3,000,000 7,250
population.
>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 5,225
population.
1,200,001-3,000,000 8,350
population.
>3,000,000 population...... 10,850
8. FM Construction Permits..... 675 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
TV (47 CFR, Part 73)
VHF Commercial:
1. Markets 1 thru 10....... 81,550 FCC, TV Branch, P.O.
Box 979084, St. Louis,
MO 63197-9000.
2. Markets 11 thru 25...... 63,275
3. Markets 26 thru 50...... 42,550
4. Markets 51 thru 100..... 23,750
5. Remaining Markets....... 6,125
6. Construction Permits.... 6,125
UHF Commercial:
1. Markets 1 thru 10....... 32,275 FCC, UHF Commercial,
P.O. Box 979084, St.
Louis, MO 63197-9000.
2. Markets 11 thru 25...... 30,075
3. Markets 26 thru 50...... 18,900
4. Markets 51 thru 100..... 11,550
5. Remaining Markets....... 3,050
6. Construction Permits.... 3,050
Satellite UHF/VHF Commercial:
1. All Markets............. 1,300 FCC Satellite TV, P.O.
Box 979084, St. Louis,
MO 63197-9000.
2. Construction Permits.... 675
Low Power TV, Class A TV, TV/FM 415 FCC, Low Power, P.O.
Translator, & TV/FM Booster Box 979084, St. Louis,
(47 CFR Part 74). MO 63197-9000.
Broadcast Auxiliary............ 10 FCC, Auxiliary, P.O.
Box 979084, St. Louis,
MO 63197-9000.
------------------------------------------------------------------------
[[Page 41961]]
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.
------------------------------------------------------------------------
Radio facilities Fee amount Address
------------------------------------------------------------------------
1. Microwave (Domestic $25.00 FCC, P.O. Box 979097,
Public Fixed) (Electronic St. Louis, MO 63197-
Filing) (FCC Form 601 & 9000
159).
Carriers
1. Interstate Telephone .00349 FCC, Carriers, P.O. Box
Service Providers (per 979084, St. Louis, MO
interstate and 63197-9000
international 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 $315 FCC, Cable, P.O. Box
Service. 979084, St. Louis, MO
63197-9000
2. Cable TV System (per .89
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 category Fee amount Address
------------------------------------------------------------------------
Space Stations (Geostationary $127,925 FCC, International,
Orbit). P.O. Box 979084, St.
Louis, MO 63197-9000
Space Stations (Non- 138,050 FCC, International,
Geostationary Orbit). P.O. Box 979084, St.
Louis, MO 63197-9000
Earth Stations: Transmit/ 240 FCC, International,
Receive & Transmit only (per P.O. Box 979084, St.
authorization or registration). Louis, 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 Fee amount Address
of December 31, 2009)
------------------------------------------------------------------------
Terrestrial Common Carrier.. $0.39 per 64 KB FCC, International,
Satellite Common Carrier.... Circuit. P.O. Box 979084,
Satellite Non-Common Carrier St. 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 as of Dec. 31, 2009) Fee amount Address
------------------------------------------------------------------------
<2.5 Gbps...................... $14,625 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-9000.
2.5 Gbps or greater, but less $29,250 FCC, International,
than 5 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
5 Gbps or greater, but less $58,500 FCC, International,
than 10 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
[[Page 41962]]
10 Gbps or greater, but less $116,975 FCC, International,
than 20 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
20 Gbps or greater............. $233,950 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-9000.
------------------------------------------------------------------------
[FR Doc. 2010-17331 Filed 7-16-10; 8:45 am]
BILLING CODE 6712-01-P