Assessment and Collection of Regulatory Fees for Fiscal Year 2017, 44322-44346 [2017-19386]
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Authority: 42 U.S.C. 7401 et seq.
Subpart SS—Texas
2. In § 52.2270(e) the table titled ‘‘EPA
approved nonregulatory provisions and
■
quasi-regulatory measures in the Texas
SIP’’ is amended by adding three new
entries at the end.
The additions read as follows:
§ 52.2270
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(e) * * *
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EPA APPROVED NONREGULATORY PROVISIONS AND QUASI-REGULATORY MEASURES IN THE TEXAS SIP
Name of SIP provision
Applicable geographic or
non-attainment area
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Conditional approval of NOX RACT finding for the Martin Marietta (formerly
Texas Industries, Inc., or TXI) cement
manufacturing plant under the 2008 8Hour ozone NAAQS.
NOX RACT finding under the 2008 8Hour ozone NAAQS.
*
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Ellis County, TX .....................................
NOX RACT finding of negative declarations for nitric acid and adipic acid operations under the 2008 8-Hour ozone
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09/22/17, [Insert FR
page number
where document
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letter of July 29,
2016.
Collin, Dallas, Denton, Tarrant, Ellis,
Johnson, Kaufman, Parker, Rockwall,
and Wise Counties, TX.
07/10/15
DFW as Moderate
and Serious.
Collin, Dallas, Denton, Tarrant, Ellis,
Johnson, Kaufman, Parker, Rockwall,
and Wise Counties, TX.
07/10/15
09/22/17, [Insert FR
page number
where document
begins].
09/22/17, [Insert FR
page number
where document
begins].
17–134, adopted on September 1, 2017
and released on September 5, 2017. The
full text of this document is available for
public inspection and copying during
normal business hours in the FCC
Reference Center (Room CY–A257), 445
12th Street SW., Washington, DC 20554,
or by downloading the text from the
Commission’s Web site at https://
transition.fcc.gov/Daily_Releases/Daily_
Business/2017/db0906/FCC-17111A1.pdf.
*
[FR Doc. 2017–20131 Filed 9–21–17; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 1
[MD Docket No. 17–134; FCC 17–111]
Assessment and Collection of
Regulatory Fees for Fiscal Year 2017
I. Administrative Matters
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
In this document, the
Commission revises its Schedule of
Regulatory Fees to recover an amount of
$356,710,992 that Congress has required
the Commission to collect for fiscal year
2017. Section 9 of the Communications
Act of 1934, as amended, provides for
the annual assessment and collection of
regulatory fees under sections 9(b)(2)
and 9(b)(3), respectively, for annual
‘‘Mandatory Adjustments’’ and
‘‘Permitted Amendments’’ to the
Schedule of Regulatory Fees.
DATES: Effective September 22, 2017. To
avoid penalties and interest, regulatory
fees should be paid by the due date of
September 26, 2017.
FOR FURTHER INFORMATION CONTACT:
Roland Helvajian, Office of Managing
Director at (202) 418–0444.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Report
and Order, FCC 17–111, MD Docket No.
SUMMARY:
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A. Final Regulatory Flexibility Analysis
1. As required by the Regulatory
Flexibility Act of 1980 (RFA),1 the
Commission has prepared a Final
Regulatory Flexibility Analysis (FRFA)
relating to this Report and Order. The
FRFA is located towards the end of this
document.
B. Final Paperwork Reduction Act of
1995 Analysis
2. This document does not contain
new or modified 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
1 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).
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DFW as Moderate
and Serious.
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 44 U.S.C.
3506(c)(4).
C. Congressional Review Act.
3. The Commission will send a copy
of the Report and Order to Congress and
the Government Accountability Office
pursuant to the Congressional Review
Act, 5 U.S.C. 801(a)(1)(A).
II. Introduction
4. The Report and Order adopts a
schedule of regulatory fees to assess and
collect $356,710,992 in regulatory fees
for fiscal year (FY) 2017, pursuant to
section 9 of the Communications Act of
1934, as amended (Communications Act
or Act) and the Commission’s FY 2017
Appropriation.2 The schedule of
regulatory fees for FY 2017 adopted here
is listed in Table 4. These regulatory
fees are due in September 2017. The FY
2017 regulatory fees are based on the
proposals in the FY 2017 NPRM,3
considered in light of the comments
received and Commission analysis.
III. Background
5. Congress adopted a regulatory fee
schedule in 1993 4 and authorized the
2 47 U.S.C. 159. Consolidated Appropriations Act,
2017, Division E—Financial Services and General
Government Appropriations Act, 2017, Title V—
Independent Agencies, Public Law 115–31 (May 5,
2017), available at https://www.congress.gov/bill/
115th-congress/house-bill/244/text.
3 Assessment and Collection of Regulatory Fees
for Fiscal Year 2017, Notice of Proposed
Rulemaking, 32 FCC Rcd 4526 (FY 2017 NPRM); 82
FR 26019, June 6, 2017.
4 47 U.S.C. 159(g) (showing original fee schedule
prior to Commission amendment).
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Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations
Commission to assess and collect
annual regulatory fees pursuant to the
schedule, as amended by the
Commission.5 The Commission
annually reviews the regulatory fee
schedule, proposes changes to the
schedule to reflect changes in the
amount of its appropriation, and
proposes increases or decreases to the
schedule of regulatory fees.6 The
Commission makes changes to the
regulatory fee schedule ‘‘if the
Commission determines that the
schedule requires amendment to
comply with the requirements’’ 7 of
section 9(b)(1)(A) of the Act.8 The
Commission may also add, delete, or
reclassify services in the fee schedule to
reflect additions, deletions, or changes
in the nature of its services ‘‘as a
consequence of Commission rulemaking
proceedings or changes in law.’’
Regulatory fees must also cover the
costs the Commission incurs in
regulating entities that are statutorily
exempt from paying regulatory fees,9
entities whose regulatory fees are
waived,10 and entities that provide
nonregulated services. Thus, for each
fiscal year, the Commission proposes a
fee schedule in the annual Notice of
Proposed Rulemaking that reflects
changes in the amount appropriated for
the performance of the Commission’s
regulatory activities, changes in the
industries represented by the regulatory
fee payors, changes in FTE 11 levels, and
any other issues of relevance to the
proposed fee schedule.12 After
reviewing the comments, the
Commission issues a Report and Order
adopting the fee schedule for the fiscal
year and sets out the procedures for
payment of fees.
6. The Commission calculates the fees
by first determining the number of FTEs
performing the regulatory activities
5 47
U.S.C. 159.
U.S.C. 159(b)(1)(B).
7 47 U.S.C. 159(b)(2).
8 47 U.S.C. 159(b)(1)(A).
9 Assessment and Collection of Regulatory Fees
for Fiscal Year 2004, Report and Order, 19 FCC Rcd
11662, 11666, para 11 (FY 2004 Report and Order);
69 FR 41028, July 7, 2004. For example,
governmental and nonprofit entities are exempt
from regulatory fees under section 9(h) of the Act.
47 U.S.C. 159(h); 47 CFR 1.1162.
10 47 CFR 1.1166.
11 One FTE, a ‘‘Full Time Equivalent’’ or ‘‘Full
Time Employee,’’ is a unit of measure equal to the
work performed annually by a full-time person
(working a 40 hour workweek for a full year)
assigned to the particular job, and subject to agency
personnel staffing limitations established by the
U.S. Office of Management and Budget.
12 Section 9(b)(2) discusses mandatory
amendments to the fee schedule and Section 9(b)(3)
discusses permissive amendments to the fee
schedule. Both mandatory and permissive
amendments are not subject to judicial review. 47
U.S.C. 159(b)(2) and (3).
6 47
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specified in section 9(a), ‘‘adjusted to
take into account factors that are
reasonably related to the benefits
provided to the payor of the fee by the
Commission’s activities . . . .’’ 13 FTEs
are categorized as ‘‘direct’’ if they are
performing regulatory activities in one
of the ‘‘core’’ bureaus, i.e., the Wireless
Telecommunications Bureau, Media
Bureau, Wireline Competition Bureau,
and part of the International Bureau. All
other FTEs are considered ‘‘indirect.’’ 14
The total FTEs for each fee category is
calculated by counting the number of
direct FTEs in the core bureau that
regulates that category, plus a
proportional allocation of indirect FTEs.
Next, the Commission allocates the total
amount to be collected among the
various regulatory fee categories. This
allocation is based on the number of
FTEs assigned to work in each
regulatory fee category. Each regulatee
within a fee category pays its
proportionate share based on an
objective measure, e.g., revenues,
number of subscribers, or licenses.15
7. As part of its annual review, the
Commission seeks to improve its
regulatory fee analysis.16 For example,
in the FY 2013 Report and Order, the
Commission updated FTE allocations to
more accurately reflect the number of
FTEs working on regulation and
oversight of the regulatees in the various
13 47 U.S.C. 159(b)(1)(A). When section 9 was
adopted, the total FTEs were to be calculated based
on the number of FTEs in the Private Radio Bureau,
Mass Media Bureau, and Common Carrier Bureau.
(The names of these bureaus were subsequently
changed.) Satellites, earth stations, and
international bearer circuits were regulated through
the Common Carrier Bureau before the International
Bureau was created.
14 As of September 2016, for regulatory fee
purposes, excluding auctions-funded FTEs, the
direct FTEs are Wireline Bureau (167); Media
Bureau (141); Wireless Bureau (92); and
International Bureau (24), for a total of 424 direct
FTEs. The indirect FTEs, for regulatory fee
purposes, non-auctions-funded, are from the
International Bureau (81), Enforcement Bureau
(237), Consumer & Governmental Affairs Bureau
(148), Public Safety & Homeland Security Bureau
(101), Chairman and Commissioners’ offices (21),
Office of the Managing Director (159), Office of
General Counsel (77), Office of the Inspector
General (43), Office of Communications Business
Opportunities (9), Office of Engineering and
Technology (78), Office of Legislative Affairs (11),
Office of Strategic Planning and Policy Analysis
(19), Office of Workplace Diversity (3), Office of
Media Relations (16), and Office of Administrative
Law Judges (4), totaling 1,007 indirect FTEs. The
total direct and indirect FTEs number 1,431.
15 See Procedures for Assessment and Collection
of Regulatory Fees, Notice of Proposed Rulemaking,
27 FCC Rcd 8458, 8461–62, paras. 8–11 (2012) (FY
2012 NPRM); 77 FR 49749, 49752–54, August 17,
2012.
16 See Assessment and Collection of Regulatory
Fees for Fiscal Year 2008, MD Docket No. 08–65,
Report and Order and Further Notice of Proposed
Rulemaking, 24 FCC Rcd 6388 (2008) (FY 2008
Further Notice); 73 FR 50285, August 26, 2008.
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fee categories; 17 reallocated some FTEs
from the International Bureau as
indirect; 18 combined the UHF and VHF
television stations into one regulatory
fee category; 19 and added Internet
Protocol Television (IPTV) to the cable
television fee category.20 In the FY 2014
Report and Order, the Commission
adopted a new fee subcategory for toll
free numbers in the Interstate
Telecommunications Service Provider
(ITSP) 21 fee category; 22 increased the
de minimis threshold to $500 for annual
regulatory fee payors; 23 and eliminated
several categories from the regulatory
fee schedule.24 In the FY 2015 Report
and Order, the Commission reduced the
regulatory fee for submarine cable,
terrestrial, and satellite international
bearer circuits.25 The Commission also
adopted a regulatory fee for DBS, as a
subcategory of the cable television and
IPTV fee category,26 and for toll-free
numbers 27 and reallocated four
International Bureau FTEs from direct to
indirect.28 In the FY 2016 Report and
Order, the Commission adjusted
regulatory fees for radio and television
17 Assessment and Collection of Regulatory Fees
for Fiscal Year 2013, Report and Order, 28 FCC Rcd
12351, 12354–58, paras. 10–20 (2013) (FY 2013
Report and Order); 78 FR 52433, August 23, 2013.
The Commission now updates the FTE allocations
annually. This was recommended in a report issued
by the Government Accountability Office (GAO) in
2012. See GAO ‘‘Federal Communications
Commission Regulatory Fee Process Needs to be
Updated,’’ GAO–12–686 (Aug. 2012) (GAO Report)
at 36 (available at https://www.gao.gov/products/
GAO-12-686).
18 FY 2013 Report and Order, 28 FCC Rcd at
12355–58, paras. 13–20; 78 FR 52433.
19 Id., 28 FCC Rcd at 12361–62, paras. 29–31; 78
FR 52433.
20 Id., 28 FCC Rcd at 12362–63, paras. 32–33; 78
FR 52433.
21 The ITSP category includes interexchange
carriers (IXCs), incumbent local exchange carriers,
toll resellers, and other IXC service providers.
22 Assessment and Collection of Regulatory Fees
for Fiscal Year 2014, Report and Order and Further
Notice of Proposed Rulemaking, 29 FCC Rcd 10767,
10777–79, paras. 25–28 (2014) (FY 2014 Report and
Order); 79 FR 54190, September 11, 2014.
23 FY 2014 Report and Order, 29 FCC Rcd at
10774–76, paras. 18–21; 79 FR 54190.
24 Id., 29 FCC Rcd at 10776–77, paras. 22–24; 79
FR 54190.
25 Assessment and Collection of Regulatory Fees
for Fiscal Year 2015, Report and Order and Further
Notice of Proposed Rulemaking, 30 FCC Rcd 10268,
10273, para. 12 (2015) (FY 2015 Report and Order);
80 FR 55775, September 17, 2015.
26 FY 2015 Report and Order, 30 FCC Rcd at
10276–77, paras. 19–20; 80 FR 55775.
27 Id., 30 FCC Rcd at 10271–72, para. 9; 80 FR
55775.
28 Id., 30 FCC Rcd at 10278, para. 24; 80 FR
55775. The Commission also, in the FY 2015 NPRM
and Report and Order, eliminated two fee
categories. See Assessment and Collection of
Regulatory Fees for Fiscal Year 2015, Notice of
Proposed Rulemaking, Report and Order, and
Order, 30 FCC Rcd 5354, 5361–62, paras. 19–22
(2015) (FY 2015 NPRM and Report and Order); 80
FR 43019, July 21, 2015.
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broadcasters, based on the type and
class of service and on the population
served; 29 adopted an increase in the
regulatory fee for DBS providers within
the cable television and IPTV regulatory
fee category; 30 and adopted an across
the board fee increase for the
Commission’s moving expenses.31 In
this proceeding, the Commission
continues to improve and reform the
regulatory fee process.
8. In our FY 2017 NPRM, we proposed
to collect $356,710,992 in regulatory
fees and included a detailed, proposed
fee schedule. We received 17 comments
and six reply comments.32
IV. Report and Order
9. In this FY 2017 Report and Order,
we adopt a regulatory fee schedule for
FY 2017, pursuant to section 9 of the
Communications Act and the 2017
Consolidated Appropriations Act 33 in
order to collect $356,710,992 in
regulatory fees.34 Of this amount, we
project approximately $22.17 million
(6.22 percent of the total FTE allocation)
in fees from the International Bureau
regulatees; 35 $88.69 million (24.86
percent of the total FTE allocation) in
fees from the Wireless
Telecommunications Bureau
regulatees; 36 $115.58 million (32.40
percent of the total FTE allocation) from
Wireline Competition Bureau
regulatees; 37 and $130.27 million (36.52
percent of the total FTE allocation) from
the Media Bureau regulatees.38 These
29 Assessment and Collection of Regulatory Fees
for Fiscal Year 2016, Report and Order, 31 FCC Rcd
10339, 10350–51, paras. 31–33 (2016) (FY 2016
Report and Order); 81 FR 65926, September 26,
2016.
30 FY 2016 Report and Order, 31 FCC Rcd at
10347–350, paras. 25–30; 81 FR 65926.
31 Id., 31 FCC Rcd at 10341, para. 7; 81 FR 65926.
32 Commenters to the FY 2017 NPRM are listed
in Table 2.
33 47 U.S.C. 159. Consolidated Appropriations
Act, 2017, Division E—Financial Services and
General Government Appropriations Act, 2017,
Title V—Independent Agencies, Public Law 115–31
(May 5, 2017), available at https://
www.congress.gov/bill/115th-congress/house-bill/
244/text.
34 Section 9 regulatory fees are mandated by
Congress and collected to recover the regulatory
costs associated with the Commission’s
enforcement, policy and rulemaking, user
information, and international activities. 47 U.S.C.
159(a).
35 Includes satellites, earth stations, and
international bearer circuits (submarine cable
systems and satellite and terrestrial bearer circuits).
36 Includes Commercial Mobile Radio Service
(CMRS), CMRS messaging, Broadband Radio
Service/Local Multipoint Distribution Service (BRS/
LMDS), and multi-year wireless licensees.
37 Includes ITSP and toll free numbers.
38 Includes AM radio, FM radio, television
(including low power and Class A), TV/FM
translators and boosters, cable television and IPTV,
DBS, and Cable Television Relaty Service (CARS)
licenses.
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regulatory fees are due in September
2017. The schedule of regulatory fees for
FY 2017 adopted here is listed in Table
4.
A. Allocating FTEs for Regulatory Fee
Purposes
10. Under section 9 of the Act,
regulatory fees are to ‘‘be derived by
determining the full-time equivalent
number of employees performing’’ these
activities, ‘‘adjusted to take into account
factors that are reasonably related to the
benefits provided to the payor of the fee
by the Commission’s activities . . . ’’ 39
As a general matter, we reasonably
expect that the work of the FTEs in the
core bureaus should remain focused on
the industry segment regulated by each
of those bureaus. The work of the FTEs
in the indirect bureaus and offices
benefits the Commission and the
telecommunications industry and is not
specifically focused on the regulatees
and licensees of a core bureau. Given
the significant implications of
reassignment of FTEs in our fee
calculation, we make changes to FTE
classifications only after performing
considerable analysis and finding the
clearest case for reassignment.40
11. In the FY 2017 NPRM, we
proposed to reallocate 38 FTEs in the
Wireline Competition Bureau associated
with Universal Service Fund work as
indirect and to reallocate four FTEs
from the Wireline Competition Bureau
that work on wireless numbering issues
to the Wireless Telecommunications
Bureau due to the changes to the
Universal Service regulatory landscape
that no longer affect only ITSPs and the
fact that approximately half the benefit
of the work done by FTEs on numbering
issues accrue to the CMRS industry.
1. FTEs Associated With the Universal
Service Fund
12. In the FY 2017 NPRM, the
Commission explained that changes to
the Universal Service Fund regulatory
landscape require us to reexamine the
treatment of Universal Service Fund
FTEs as direct FTEs. There are currently
approximately 51 FTEs in the Wireline
Competition Bureau, including the
bureau front office, working on
Universal Service Fund issues, with 13
of those FTEs focused on the High-Cost
program. Currently, there are
approximately three FTEs in the
39 47
U.S.C. 159(b)(1)(A).
2013 Report and Order, 28 FCC Rcd at
12357, para. 19; 78 FR 52433. The Commission
observed that the International Bureau was a
‘‘singular case’’ because the work of those FTEs
‘‘primarily benefits licensees regulated by other
bureaus.’’ Id., 28 FCC Rcd at 12355, para. 14; 78 FR
52433.
40 FY
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Wireless Telecommunications Bureau,
including the bureau front office,
implementing the Mobility Fund, a
universal service High-Cost support
mechanism devoted exclusively to
mobile services.41 These Wireline
Competition Bureau and Wireless
Telecommunications Bureau FTEs are
considered direct FTEs for regulatory
fee purposes. Other FTEs throughout the
Commission working on universal
service issues are indirect FTEs,
including the FTEs working on
universal service issues in the
Enforcement Bureau, the Office of the
Managing Director, the Office of the
Inspector General, and the Office of the
General Counsel.
13. In the FY 2017 NPRM, we
proposed to reallocate the 38 FTEs in
the Wireline Competition Bureau
assigned to work on the non-high-cost
programs of the Universal Service Fund
as indirect for regulatory fee purposes,
for several reasons.42 The 38 FTE count
is based on coordination between the
Office of Managing Director and
Wireline Competition Bureau staff
which analyzed how many FTEs work
on each of the USF programs.43 In doing
so, we noted that contributions to the
Universal Service Fund are required
from service providers using any
technology that has end-user interstate
telecommunications.44 As we discussed
in the FY 2017 NPRM, continuing
changes in the universal service fund
regulatory landscape requires us to
reexamine the appropriateness of
treating the FTEs working on universal
service issues as Wireline Competition
Bureau direct FTEs.45 Initially,
universal service programs were focused
on wireline services, but now wireless
carriers, and more recently broadband
providers, are involved in the E-Rate,46
41 See Connect America Fund, et al., Report and
Order and Further Notice of Proposed Rulemaking,
26 FCC Rcd 17663 (2011); 76 FR 78384, December
16, 2011.
42 FY 2017 NPRM, 32 FCC Rcd at 4529–4530,
para. 10; 82 FR 26019.
43 The FCC Time and Attendance system does not
provide a breakdown of USF work by technology
or bureau.
44 47 CFR 54.706(a).
45 FY 2017 NPRM, 32 FCC Rcd at 4529, para. 9;
82 FR 26019.
46 ‘‘The schools and libraries universal service
support program, commonly known as the E-rate
program, helps schools and libraries to obtain
affordable broadband . . . . Eligible schools, school
districts and libraries may apply individually or as
part of a consortium [for] . . . category one services
to a school or library (telecommunications,
telecommunications services and Internet access),
and category two services that deliver Internet
access within schools and libraries (internal
connections, basic maintenance of internal
connections, and managed internal broadband
services).’’ See FCC Web site, ‘‘E-Rate—Schools &
Libraries USF Program,’’ available at https://
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Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations
Lifeline,47 and Rural Healthcare 48
programs.
In addition, three of the universal
service fund programs—E-Rate, Lifeline,
and Rural Healthcare—tie funding
eligibility to the beneficiary, i.e., a
school, a library, a low-income
individual or family, or a rural
healthcare provider, and not to
Commission regulatees.49 Wireless
carriers now serve a substantial, if not
majority, of Lifeline subscribers.50 Also,
satellite operators, Wi-Fi network
installers, and fiber builders may all
receive funding through the E-Rate and
Rural Healthcare universal service
programs.51 Similarly, multichannel
video programming distributors
(MVPDs), who also provide supported
services, receive universal service
funding through participation in both
the E-rate and Rural Healthcare
programs because they provide
telecommunications and Internet access
services that are eligible for support in
those programs.52 And given that the
applicants in these programs are not
even regulatees—instead, they are the
schools and libraries and healthcare
providers—the bulk of the
Commission’s oversight of these
programs (i.e., the costs incurred that
www.fcc.gov/general/e-rate-schools-libraries-usfprogram#block-menu-block-4 (last visited July 17,
2017).
47 ‘‘Since 1985, the Lifeline program has provided
a discount on phone service for qualifying lowincome consumers . . . . The Lifeline program is
available to eligible low-income consumers in every
state, territory, commonwealth, and on Tribal lands
. . . . In . . . 2016 . . . the Commission included
broadband as a support service in the Lifeline
program.’’ See FCC Web site, ‘‘Lifeline Program for
Low-Income Consumers,’’ available at https://
www.fcc.gov/general/lifeline-program-low-incomeconsumers#block-menu-block-4 (last visited July 17,
2017).
48 ‘‘The Rural Health Care Program, which
includes the new Healthcare Connect Fund,
provides funding to eligible health care providers
(HCPs) for telecommunications and broadband
services necessary for the provision of health care.
The goal of the program is to improve the quality
of health care available to patients in rural
communities by ensuring that eligible HCPs have
access to telecommunications and broadband
services.’’ See FCC Web site, ‘‘Rural Health Care
Program,’’ available at https://www.fcc.gov/general/
rural-health-care-program#block-menu-block-4 (last
visited July 17, 2017).
49 FY 2017 NPRM, 32 FCC Rcd at 4530, para. 10;
82 FR 26019.
50 Id.
51 Id.
52 See USAC Web site, 2017 E-Rate Eligible
Services List, available at https://www.usac.org/sl/
applicants/beforeyoubegin/eligible-serviceslist.aspx (last visited July 28, 2017); USAC Web site
Rural Healthcare Eligible Services, available at
https://www.usac.org/rhc/telecommunications/
health-care-providers/step01/eligible-services.aspx
(last visited July 28, 2017). See also Universal
Service Administrative Company Third Quarter
2017 FCC Filings (E-rate and Rural Healthcare),
available at https://www.usac.org/about/tools/fcc/
filings/2017/q3.aspx (last visited July 28, 2017).
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create a need for regulatory fees) are not
generated by regulatees. Indeed, seven
of the ten E-Rate forms that make up the
bulk of the Commission’s oversight of
the program are filed by schools and
libraries, not service providers.
Similarly, seven of the nine rural
healthcare program forms are filed by
healthcare providers, not service
providers. In other words, ITSPs are not
the sole or even majority contributors or
beneficiaries of these three programs.
Reallocating these Wireline Competition
Bureau FTEs as indirect FTEs would be
more consistent with how FTEs working
on universal service issues are treated
elsewhere in the Commission, e.g.,
similar to the 10 FTEs working on USF
matters in the Enforcement Bureau, the
5 FTEs in the Office of the Managing
Director, the 10 FTEs in the Office of the
Inspector General, and the 5 FTEs in the
Office of the General Counsel.53
14. ITTA and Frontier support the
proposal in the FY 2017 NPRM to
reallocate 38 Wireline Competition
Bureau FTEs as indirect, and CTIA
argues that if the Commission
reclassifies any of these FTEs, they
should be reallocated as indirect.54
CenturyLink also agrees with this
proposal and observes that the concern
that the reallocation would impose a
burden on broadcasters which do not
participate in the universal service
program is misplaced ‘‘as there is no
completely pure way to precisely
allocate every Commission FTE.’’ 55
After consideration of the record on this
issue and for the reasons discussed in
the FY 2017 NPRM, i.e., that ITSPs are
no longer the sole contributors or
beneficiaries of the E-Rate, Lifeline, and
Rural Healthcare programs and
allocating these Wireline Competition
Bureau FTEs as indirect FTEs would be
more consistent with how FTEs working
on universal service issues are treated
elsewhere in the Commission, we adopt
the proposal to reallocate 38 FTEs in the
Wireline Competition Bureau assigned
to work on the non-high-cost programs
of the Universal Service Fund as
indirect. The regulatory fee rates set
forth in Appendix C reflect this
reallocation of FTEs for regulatory fee
purposes.
15. We disagree with SIA’s argument
that such a reallocation of FTEs from
direct to indirect is ‘‘premature’’
because satellite operators do not yet
benefit from the contributions of the
FTEs working on universal service fund
53 Id.
54 ITTA Comments at 5; Frontier Comments at 3;
CTIA Reply Comments at 4–5.
55 CenturyLink Comments at 4.
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issues.56 The FTEs working on these
universal service issues have already
devoted substantial time to making sure
that satellite operators are eligible to
participate in these programs, such as
by becoming ETCs or being eligible for
funding under the Rural Healthcare
program or E-Rate. Permitting satellite
operators into the USF programs uses
FTE resources at the beginning of a
satellite operators’ participation. And
some satellite providers have begun to
take advantage of that eligibility in, for
example, the Rural Healthcare program.
Thus, these FTEs are both overseeing
satellite operators and benefiting
satellite operators, making reallocation
appropriate.
16. ITTA and Frontier suggest that we
also reallocate to the Wireless
Telecommunications Bureau and/or
Media Bureau direct FTEs working on
universal service high cost issues.57
Frontier argues that we should
reallocate FTEs working on High-Cost
Fund issues as indirect FTEs because all
universal service programs, including
the High-Cost Fund, ‘‘benefit the public
and all members of the Internet
ecosystem, not specifically or uniquely
wireline companies.’’ 58 CTIA opposes
the proposal to reallocate FTEs working
on High-Cost issues, and observes that
ITTA and Frontier have failed to show
a clear case for reclassification of the
Wireline Competition Bureau FTEs.59
We agree with CTIA that the case for
reallocation has not been made at this
time.
17. Several parties also ask that we go
farther. For example, ITTA argues that
the Wireline Competition Bureau FTEs
are ‘‘no longer focused exclusively on
ITSPs’’ 60 and the Commission ‘‘must
make adjustments to ensure that its
regulatory fees reflect its actual costs by
industry sector.’’ 61 Similarly, ITTA,
Frontier, and CenturyLink also argue
that we should combine CMRS into the
ITSP category.62 We do not believe the
case has been made for such large
changes at this time, because (among
56 SIA Comments at 2–3; SIA Comments at 2
(observing that no satellite operator has yet been
designated an eligible telecommunications carrier,
or ETC, which is required for Lifeline funding).
57 ITTA Comments at 6. CenturyLink also
supports allocating four Wireline Competition
Bureau FTEs as Wireless Telecommunications
Bureau FTEs for regulatory fee purposes because
‘‘wireless carriers now serve over 90% of Lifeline
subscribers.’’ CenturyLink Reply Comments at 4.
58 Frontier Comments at 3–4. CenturyLink agrees
with this proposal. See CenturyLink Reply
Comments at 3–4.
59 CTIA Reply Comments at 6.
60 ITTA Comments at 2.
61 ITTA Comments at 3 (emphasis added).
62 See ITTA Comments at 10–11; Frontier
Comments at 6–7; CenturyLink Reply Comments at
4–5.
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Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations
other things) advocates of such changes
have not fully accounted for the
substantial differences in regulatory
oversight between different groups of
regulatees nor the fact that allocating
regulatory fees is not and cannot be an
exact science. On the last point, it
would be nigh impossible to determine
the precise costs attributable to FTEs
and the precise benefits flowing from
Commission regulation to any one
regulatee, let alone a particular crosssection of regulatees or even an entire
industry—not to mention the
complications associated with
regulatees statutorily exempt from
paying regulatory fees (such as
governmental licensees) and with
beneficiaries (such as schools and
libraries) that are not regulatees, all of
whom nonetheless create costs that
must be recovered. As such the
Commission has long taken an
incrementalist approach, requiring
substantial and specific evidence about
regulatory burdens and benefits before
making changes to the allocation of fees.
And those seeking to change our
allocations even further have not yet
made the case for doing so.
18. After reviewing the record, we
conclude that our proposal in the FY
2017 NPRM to reallocate 38 FTEs in the
Wireline Competition Bureau assigned
to work on the non-high cost programs
of the Universal Service Fund as
indirect for regulatory fee purposes is
warranted and consistent with section 9
of the Act. We therefore adopt the
proposal in the FY 2017 NPRM. The
regulatory fee rates set forth in Table 4
reflect this reallocation of FTEs.
2. FTEs Associated With Numbering
Issues
19. In the FY 2017 NPRM, we
estimated that seven to eight FTEs in the
Wireline Competition Bureau work on
numbering issues.63 We proposed to
reallocate for regulatory fee purposes
four of these direct FTEs from the
Wireline Competition Bureau to the
Wireless Telecommunications Bureau
‘‘to take into account factors that are
reasonably related to the benefits
provided to the payor of the fee by the
Commission’s activities . . . .’’ 64
Specifically, we estimated
approximately half of the benefit of the
work of these FTEs accrue to Wireless
Telecommunications Bureau
regulatees.65 Commenters agree with
63 FY 2017 NPRM, 32 FCC Rcd at 4530, para. 13;
82 FR 26019.
64 47 U.S.C. 159(b)(1)(A).
65 See Industry Analysis and Technology
Division, Wireline Competition Bureau, FCC, Voice
Telephone Services: Status as of December 31,
2015, at 2 Figure 1 (2016).
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our proposal to reallocate four of the
Wireline Competition Bureau FTEs that
work on numbering issues to the
Wireless Telecommunications Bureau as
direct FTEs for regulatory fee
purposes.66
20. After reviewing the record, we
conclude that reallocating four FTEs in
the Wireline Competition Bureau
assigned to work on numbering issues to
the Wireless Telecommunications
Bureau for regulatory fee purposes is
warranted and consistent with section 9
of the Act. Reallocating four direct FTEs
from the Wireline Competition Bureau
to the Wireless Telecommunications
Bureau will ‘‘take into account factors
that are reasonably related to the
benefits provided to the payor of the fee
by the Commission’s activities’’ 67
because approximately half of the
benefit of the work of these FTEs accrue
to Wireless Telecommunications Bureau
regulatees.68 We therefore adopt our
proposal to reallocate for regulatory fee
purposes four direct FTEs from the
Wireline Competition Bureau to the
Wireless Telecommunications Bureau.
The regulatory fee rates set forth in
Appendix C reflect this reallocation of
FTEs.
B. Direct Broadcast Satellite (DBS)
Regulatory Fees
21. DBS service is a nationally
distributed subscription service that
delivers video and audio programming
via satellite to a small parabolic dish
antenna at the subscriber’s location. The
two DBS providers, AT&T 69 and DISH
Network, are MVPDs.70 Following the
2012 GAO Report, in which the GAO
observed that an evaluation of Media
Bureau FTEs was long overdue,71 the
Commission concluded that the Media
Bureau FTEs regulate the DBS industry
together with the other MVPDs.72
66 ITTA Comments at 9–10; CenturyLink
Comments at 5 & Reply Comments at 5; Frontier
Comments at 5–6.
67 47 U.S.C. 159(b)(1)(A).
68 See Industry Analysis and Technology
Division, Wireline Competition Bureau, FCC, Voice
Telephone Services: Status as of December 31,
2015, at 2 Figure 1 (2016).
69 AT&T and DIRECTV merged in 2015. See
Applications of AT&T and DIRECTV for Consent to
Assign or Transfer Control of Licenses and
Authorizations, Memorandum Opinion and Order,
30 FCC Rcd 9131 (2015).
70 MVPD is defined in section 602(13) of the Act,
47 U.S.C. 522(13). DBS subscribers were 33.2
percent of all MVPD subscribers at the end of 2015.
See Annual Assessment of the Status of
Competition in the Market for the Delivery of Video
Programming, Eighteenth Report, 32 FCC Rcd 568,
575, para. 19 (2017) (Eighteenth Competition
Report) (citing SNL Kagan, U.S. Multichannel
Industry Benchmarks).
71 GAO Report at 17–20.
72 FY 2015 NPRM, 30 FCC Rcd at 5368, para. 32;
80 FR 37206.
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Fmt 4700
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Subsequently, the Commission adopted
a regulatory fee for DBS as a subcategory
in the cable television and IPTV
category, of 12 cents per year per
subscriber.73 This regulatory fee
subcategory was based on Media Bureau
FTE activity involving regulation and
oversight of all MVPDs, which included
DBS providers.74
22. As the Commission discussed in
the FY 2015 NPRM, the DBS providers
were established as large MVPDs by
2015 and significant Media Bureau FTE
resources were used in regulation and
oversight of all MVPDs, including
DBS.75 The Commission concluded
there was no reasonable basis to
continue to exclude DBS providers from
sharing in the cost of MVPD oversight
and regulation with cable television and
IPTV. In lieu of directly including DBS
providers in the cable television/IPTV
category at the same regulatory fee rate,
the Commission elected to phase in the
new Media Bureau-based regulatory fee
for DBS, starting at 12 cents per
subscriber, per year. Since then, the
Commission has increased the DBS
regulatory fee each year, to bring it
closer to the per-subscriber rate paid by
cable television and IPTV. In the FY
2016 regulatory fee proceeding, the
Commission increased the regulatory fee
for DBS providers to 24 cents, plus an
across-the-board increase of three cents
for the Commission’s moving expenses,
for a total of 27 cents per subscriber, per
year.76 In the FY 2017 NPRM, the
Commission noted that the Media
Bureau resources focused on MVPD
proceedings (including DBS) supported
continuing to bring the DBS rate closer
to the cable television/IPTV per
subscriber rate.77 At that time, we
proposed a regulatory fee rate of 36
cents per subscriber per year, plus two
cents due to the increase in the
Commission’s budget for moving
expenses, for a total of 38 cents per
subscriber per year for FY 2017.78 As we
discuss below, we are adopting the
proposed rate of 38 cents per subscriber,
per year in this Report and Order, in our
effort to bring the DBS rate closer to the
cable television/IPTV per subscriber
rate.
23. We agree with the commenters
representing the cable television
73 FY 2015 Report and Order, 30 FCC Rcd at
10276–77, paras. 19–20; 80 FR 55775.
74 FY 2015 NPRM, 30 FCC Rcd at 5367–68, para.
31; 80 FR 37206.
75 Id., 30 FCC Rcd at 5368, para. 32; 80 FR 37206.
76 FY 2016 Report and Order, 31 FCC Rcd at
10348–49, para. 26; 81 FR 65926.
77 FY 2017 NPRM, 32 FCC Rcd at 4531–32, paras.
15–17; 82 FR 26019.
78 FY 2017 NPRM, 32 FCC Rcd at 4532, para. 17;
82 FR 26019.
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industry that the Media Bureau
resources utilized by the DBS providers
are similar to those used by the cable
television and IPTV industry,79 and for
this reason we have been phasing in the
regulatory fee for DBS providers each
year. Commenters representing the cable
television industry observe that despite
the Commission’s prior commitment to
ensuring ‘‘an appropriate level of
regulatory parity with cable television
and IPTV’’ the proposed rate is far
below the 96 cents proposed rate for
cable television and IPTV.80 These
commenters argue that there is no
justification for this disparity, due to the
fact that DBS operators impose
regulatory costs and receive benefits
from the Media Bureau that affect all
MVPDs; 81 that the proposed fees
impose competitive and technological
disparities, favoring DBS over cable
television and IPTV; 82 and that there is
no evidence in the record to support the
disparity in fees.83 The Media Bureau
FTEs regulate the DBS industry together
79 For example, as ACA observes, DBS providers
have been actively involved in the Media Bureau’s
proceeding implementing the Satellite Television
Extension and Localism Act Reauthorization Act of
2014 (STELAR) and in the market modification
proceedings that STELAR directed the Commission
to expand to satellite DBS carriage. The STELA
Reauthorization Act of 2014 (STELAR), Pub. L.
113–200, 128 Stat. 2059 (2014); Amendment to the
Commission’s Rules Concerning Market
Modification, Implementation of Section 102 of the
STELA Reauthorization Act of 2014, Report and
Order, 30 FCC Rcd 10406 (80 FR 59635, October 2,
2015) (adopting satellite television market
modification rules). See, e.g., Gray Television
Licensee, LLC, Petition for Modification of the
Satellite Televisions Market for WSAW–TV,
Wausau, Wisconsin, MB Docket No. 16–293,
DirecTV, LLC Response to Petition for Special
Relief (filed Oct. 6, 2016); Amendment to the
Commission’s Rules Concerning Market
Modification, Implementation of Section 102 of the
STELA Reauthorization Act of 2014, MB Docket No.
15–71, DISH Network LLC Market Modification PreFiling Coordination Letter for Monongalia County,
West Virginia (filed May 23, 2017).
AT&T and DISH have also been involved in the
Commission’s ATSC 3.0 rulemaking. See, e.g.,
Authorizing Permissive Use of the ‘‘Next
Generation’’ Broadcast Television Standard, GN
Docket No. 16–142, Comments of DISH Network
LLC (filed May 9, 2017); Reply Comments of AT&T
(filed June 8, 2017). AT&T and DISH Network were
also active participants in the Media Bureau’s 2016
public notice proceeding. See, e.g., Media Bureau
Seeks Comment on Joint Petition for Rulemaking of
America’s Public Television Stations, the AWARN
Alliance, the Consumer Technology Association,
and the National Association of Broadcasters
Seeking to Authorize Permissive Use of the ‘‘Next
Generation TV’’ Broadcast Television Standard, GN
Docket No. 16–142, Comments of DISH Network,
LLC (filed May 26, 2016); Comments of AT&T (filed
May 26, 2016).
80 ACA Comments at 2 (quoting FY 2017 NPRM,
32 FCC Rcd at 4531, para. 15; 82 FR 26019); NCTA
Comments at 3.
81 ACA Comments at 3–6; NCTA Comments at 3–
5.
82 NCTA Comments at 5–7.
83 NCTA Comments at 7–8.
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with the other MVPDs and the burden
that DBS imposes on Media Bureau
FTEs is roughly the same. For example,
since October 1, 2016, the Media Bureau
has opened 17 proceedings that affect
MVPDs; seven of those proceedings are
focused on cable operators, six are
focused on DBS, and four cover all
MVPDs (with three of those also
covering other media services like
broadcasters). Thus, these regulatees—
MVPDs—are a group that includes DBS.
In order to continue to bring the DBS fee
closer to the cable television/IPTV fee,
we are adopting the proposed rate of 38
cents per subscriber, which still remains
substantially below the cable television/
IPTV fee we adopt today.
24. We reject the argument raised by
DISH and AT&T, the two DBS
providers, who contend that a fee
increase would ‘‘harm DBS
customers.’’ 84 We do not accept the
DISH and AT&T unsupported
contention that a regulatory fee increase
of several cents per subscriber, per
month would ‘‘harm’’ their customers,
as such an increase is a negligible
fraction of a monthly bill.85
25. AT&T and DISH also argue that
several recent proceedings involving
MVPDs do not justify an increase in
regulatory fees.86 We disagree. The
examples of recent proceedings
involving MVPDs illustrate that Media
Bureau FTEs work on significant MVPD
issues that include DBS. DBS, cable
television, and IPTV all receive
oversight and regulation as a result of
the work of Media Bureau FTEs on
MVPD issues. This regulatory fee is not
based on specific recent proceedings,
but that a significant number of Media
Bureau FTEs work on MVPD issues that
include DBS.87 We listed examples of
several recent proceedings to illustrate
that the Media Bureau is involved in
numerous MVPD issues.88 The fee
84 DISH
and AT&T Comments at 3.
current least expensive promotional rate
for new DBS subscribers is approximately $50 per
month for 12 months (not including taxes or leasing
charges). Even if the regulatory fee were 72 cents
per subscriber per year, approximately what it
would be at parity with cable television/IPTV, it
would equal 0.12% of the lowest introductory
monthly fee for DBS ($600 × .0012 = $0.72). See
https://www.directv.com/DTVAPP/pepod/
configure.jsp#package-section (last visited June 29,
2017); https://www.dish.com/programming/
packages/ (last visited June 29, 2017). ACA
observes that DISH’s reported average revenue per
unit was $86.79 per month and AT&T’s was
$118.00 per month. ACA Reply Comments at 2–3.
86 DISH and AT&T Comments at 4–5; AT&T Reply
Comments at 6–7.
87 FY 2015 Report and Order, 30 FCC Rcd at 5369,
para. 33; 80 FR 43019.
88 See, e.g., Video Description: Implementation of
the Twenty-First Century Communications and
Video Accessibility Act of 2010, Notice of Proposed
Rulemaking, 31 FCC Rcd 2463 (81 FR 33642, May
85 The
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44327
increase we adopt today is not based on
particular Media Bureau proceedings,
but is an effort to bring the regulatory
fee closer to the cable television/IPTV
per subscriber fee.
26. AT&T and DISH contend that
there is no evidence that DBS providers
‘‘usurped the work of such a significant
amount of Media Bureau FTEs sufficient
to justify this increase.’’ 89 The DBS
commenters are misunderstanding the
basis for including DBS in the cable
television/IPTV regulatory fee.90 The
Commission has never said that the DBS
industry ‘‘usurped the work’’ of the
Media Bureau staff. The regulatory fee is
based on the fact that Media Bureau
staff work on significant issues
involving MVPDs, including DBS. The
DBS regulatory fee is based on the
Media Bureau’s regulation and oversight
of the MVPD industry (including DBS),
not on a particular number of FTEs
focused solely on DBS. The Commission
has specifically rejected the argument
that section 9 of the Act requires us to
‘‘show that DBS and cable occupy a
comparable number of FTEs.’’ 91
27. Finally, AT&T and DISH contend
that there is no legal basis to charge DBS
providers the same regulatory fees as
cable television and IPTV operators.92
We disagree. We recognize that DBS is
not identical to cable television and
IPTV. Services that are not
technologically identical nevertheless
warrant placement in the same
regulatory fee category, e.g., ITSP
includes a range of carriers that may not
be regulated identically but must pay
27, 2016); Expanding Consumers’ Video Navigation
Choices, Commercial Availability of Navigation
Devices, Notice of Proposed Rulemaking and
Memorandum Opinion and Order, 31 FCC Rcd 1544
(81 FR 14033, March 16, 2016); Promoting the
Availability of Diverse and Independent Sources of
Video Programming, Notice of Inquiry, 31 FCC Rcd
1610 (2016); Expansion of Online Public File
Obligations to Cable and Satellite TV Operators and
Broadcast and Satellite Radio Licensees, Report and
Order, 31 FCC Rcd 526 (2016); Amendment to the
Commission’s Rules Concerning Market
Modification, Implementation of Section 102 of the
STELA Reauthorization Act of 2014, Report and
Order, 30 FCC Rcd 10406 (2015).
89 DISH and AT&T Comments at 5–6. We also do
not agree with AT&T’s argument that we have
ignored the other regulatory fees paid by the DBS
providers. AT&T Reply Comments at 7. The
regulatory fee based on the Media Bureau FTEs is
not related to the regulatory fee based on
International Bureau FTEs. While there is no other
industry in the same situation as DBS, we note that
the cable television industry pays regulatory fees for
CARs licenses.
90 ACA observes, ‘‘the DBS providers misconceive
the nature of the Commission’s fee setting exercise,
as it is not required to calculate fee levels with
scientific precision.’’ See ACA Reply Comments at
6.
91 FY 2015 Report and Order, 30 FCC Rcd at 5369,
para. 33; 80 FR 43019.
92 DISH and AT&T Comments at 7–8.
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fees on the same basis.93 When
interconnected Voice over Internet
Protocol (VoIP) providers were added to
the ITSP category in a permitted
amendment the Commission observed
that ‘‘the costs and benefits associated
with our regulation of interconnected
VoIP providers are not identical as those
associated with regulating interstate
telecommunications service and
CMRS.’’ 94 Indeed, IPTV is not regulated
in all the same ways as cable television,
and yet the Commission requires them
to pay fees on the same basis.95 We
recognize that DBS is not identical to
cable, but the Media Bureau FTEs work
on MVPD issues that include DBS.
Although DBS is not identical to cable
television and IPTV, the services all
receive oversight and regulation as a
result of the work of Media Bureau FTEs
on MVPD issues, and the burden
imposed on the Commission is similar.
28. After considering the comments
filed in this proceeding, we conclude
that moving the DBS rate is supported
by the data and analysis, and therefore
adopt a regulatory fee rate of 38 cents,
per subscriber, per year for FY 2017.
C. Radio Broadcaster Regulatory Fees
29. In the FY 2017 NPRM, the
Commission proposed to revise the table
for AM and FM broadcasters.96 The
proposed table had revised ratios so that
the difference between each tier would
be proportional. We also sought
comment on whether the regulatory fees
should be reduced further for the AM
and FM broadcasters in the two lowest
tiers.
30. We received two comments on
this issue. CRC, an AM station licensee,
contends that the proposed fees for AM
stations are too high.97 CRC observes
that small AM stations must compete
against FM stations and other media and
they generate significantly less revenue
than FM stations.98 CRC argues that the
economic disparities between AM and
FM facilities should be reflected in the
regulatory fee schedules, particularly in
the top tiers where the disparity in
revenues is much greater than in the
smaller markets.99 Arso contends that
the FY 2017 NPRM does not go far
enough in alleviating the hardship
imposed on small broadcasters and
urges the Commission to adopt a fast
track waiver process for stations in
economically depressed areas, such as
Puerto Rico.100
31. We agree with the commenters
that small independent broadcasters
face hardship today. As the Commission
explained in the FY 2016 Report and
Order, ‘‘[e]xtending some relief to these
small radio broadcasters may facilitate
their continued ability to stay in
business and serve their small and rural
communities.’’ 101 After reviewing the
record, and due to the economic
hardship faced by many small rural
independent radio stations, we are
adopting a revised version of the
proposed table in the FY 2017 NPRM
and reducing the regulatory fees in the
two lowest population tiers for AM and
FM broadcasters from the amounts
proposed. In FY 2018, we will again
review the status of these small radio
broadcast stations to see if further relief
is warranted. Below is the table we
adopt today:
TABLE 1—FY 2017 RADIO STATION REGULATORY FEES
FY 2017 Radio Station Regulatory Fees
AM Class
A
Population served
<=25,000 ..................................................
25,001–75,000 .........................................
75,001–150,000 .......................................
150,001–500,000 .....................................
500,001–1,200,000 ..................................
1,200,001–3,000,00 .................................
3,000,001–6,000,00 .................................
>6,000,000 ...............................................
$895
1,350
2,375
3,550
5,325
7,975
11,950
17,950
D. Broadcast Television Satellite
32. Broadcast television satellite
stations pay a lower regulatory fee than
standalone full service broadcast
television stations, and some of these
stations are designated as such pursuant
to note 5 to § 73.3555 of the
Commission’s rules.102 For purposes of
regulatory fees, we historically have
identified as satellite stations those so
listed in the Media Bureau’s
Consolidated Data Base System (CDBS),
93 ITSP, regulated by the Wireline Competition
Bureau, includes interexchange carriers (IXCs),
incumbent local exchange carriers (LECs), toll
resellers, Voice over Internet Providers (VoIP), and
other service providers, all of which involve
different degrees of regulatory oversight.
94 See Assessment and Collection of Regulatory
Fees for Fiscal Year 2007, Report and Order and
Further Notice of Proposed Rulemaking, 22 FCC
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Jkt 241001
AM Class
B
AM Class
C
$640
955
1,700
2,525
3,800
5,700
8,550
12,825
$555
830
1,475
2,200
3,300
4,950
7,400
11,100
the Television and Cable Factbook, or
BIA/Kelsey MEDIA Access Pro.103 In the
FY 2017 NPRM, the Commission sought
comment on basing the categorization of
television satellite stations for
regulatory fee payments on
authorization under note 5 of § 73.3555
of the Commission’s rules, and noted
that the Television and Cable Factbook
may identify some stations as satellite
stations that are not listed in the Media
Bureau’s records.104 We received
limited comments on the issue and do
Rcd 15712, 15719, para. 19 (2007) (FY 2007 Report
and Order); 72 FR 45908, August 16, 2007.
95 FY 2013 Report and Order, 28 FCC Rcd at
12362, para. 32 (‘‘IPTV providers should be subject
to the same regulatory fee as cable providers.’’); 78
FR 52433.
96 FY 2017 NPRM, 32 FCC Rcd at 4533, para. 19;
82 FR 26019.
97 CRC Comments at 1.
98 CRC Comments at 1.
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Fmt 4700
Sfmt 4700
AM Class
D
$610
915
1,600
2,425
3,625
5,425
8,150
12,225
FM Classes
A, B1 & C3
$980
1,475
2,600
3,875
5,825
8,750
13,100
19,650
FM Classes
B, C, C0, C1
& C2
$1,100
1,650
2,925
4,400
6,575
9,875
14,800
22,225
not have adequate support to change the
methodology for determining which
stations are satellites at this time. We
recognize that regulatees rely on
consistency of treatment. Therefore, for
FY 2017 regulatory fees we treat
broadcast television satellite stations as
satellite stations that are listed as such
in CDBS, the 2017 Television and Cable
Factbook, or BIA/Kelsey MEDIA Access
Pro, or paid regulatory fees as a satellite
99 CRC
Comments at 2.
Comments at 1–2.
101 FY 2016 Report and Order, 31 FCC Rcd at
10351, para. 33; 81 FR 65926.
102 FY 2017 NPRM, 31 FCC Rcd at 4534, para. 20;
82 FR 26019.
103 Id., FY 2017 NPRM, 31 FCC Rcd at 4535, para.
21; 82 FR 26019.
104 Id., FY 2017 NPRM, 31 FCC Rcd at 4535, para.
20; 82 FR 26019.
100 Arso
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station in FY 2016.105 In the future, we
intend to continue examining the
appropriate methodology for
categorizing when a station should only
be assessed regulatory fees at the
satellite station level. In doing so, as
with other fee reforms, the Commission
will work to ensure that any proposed
changes to our fee structure are
equitable, administrable, and
sustainable.106
E. Submarine Cable Regulatory Fees
33. The Coalition, a group of
submarine cable operators, objects to the
proposed FY 2017 regulatory fees for the
submarine cable industry, observing
that the total amount the Commission is
collecting for FY 2017 ($356,710,992) is
less than the amount collected for FY
2016 ($384,012,497, of which
$44,168,497 was to offset facilities
reduction costs), yet the regulatory fee
for the highest tier submarine cable
system was $133,200 for FY 2016 and
the rate proposed for FY 2017, for the
highest tier, is $135,700.107 The
Coalition states that the FY 2017 NPRM
does not adequately justify the proposed
increase in fees for submarine cable
systems.108 The Coalition argues that
the FY 2016 rate included a one-time
facilities reduction charge and the FY
2017 rate should be less than the FY
2016 rate because the number of
payment units are the same.109 The
Coalition contends that the Commission
is subsidizing unrelated activities to the
detriment of the submarine cable
operators.110
34. We disagree with the Coalition’s
argument. The increase in regulatory fee
rates for the International Bureau
regulatees is due to the reallocation of
38 Wireline Competition Bureau direct
FTEs as indirect in FY 2017, as
discussed above. Although the amount
collected overall is less in FY 2017 than
in FY 2016, the allocation percentage of
regulatory fees for the International
Bureau increased from 5.6 percent in FY
2016 111 to 6.22 percent for FY 2017,112
due to the increase in indirect FTEs. We
also note that the regulatory fees paid by
the submarine cable operators cover, in
addition to the services that the
105 For purposes of determining whether a
licensee qualifies as a satellite station for regulatory
fee purposes, it must be so characterized in one of
these sources as of the date of the Report and Order.
106 See FY 2013 NPRM, 28 FCC Rcd at 7798–7807,
paras. 17–40; 78 FR 34612.
107 Coalition Comments at 3.
108 Coalition Comments at 3.
109 Coalition Comments at 5–6.
110 Coalition Comments at 8.
111 FY 2016 Report and Order, 31 FCC Rcd at
10347–350, para. 6; 81 FR 65926.
112 FY 2017 NPRM, 32 FCC Rcd at 4529, para. 8;
82 FR 26019.
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International Bureau provides to
submarine cable operators, the services
provided to common carriers using
submarine cable circuits.113 The
International Bureau provides many
services on behalf of common carriers
using submarine cable circuits, such as
benchmarks enforcement,114 protection
from anticompetitive actions by foreign
carriers, section 310(b) foreign
ownership rulings, international section
214 authorizations, and representation
of U.S. interests at bilateral and
multilateral negotiations and
international organizations.115 After
reviewing the record, including the
comments from the submarine cable
industry, we are adopting the fee
proposed in the FY 2017 NPRM for
submarine cable systems.
F. International Bearer Circuits
35. In 2009,116 the Commission
adopted a new methodology for
calculating submarine cable
international bearer circuits regulatory
fees by: (i) Eliminating the distinction
between common carriers and noncommon carriers 117 and (ii) assessing a
flat per cable landing license fee 118 for
all submarine cable systems with higher
fees for larger submarine cable systems
and lower fees for smaller systems.119
The Commission concluded that the
new methodology would be more
equitable and would encourage better
compliance with the regulatory fee
requirements.120 The Commission did
not revise the terrestrial and satellite
IBC regulatory fee methodology at that
time because of the ‘‘complexity of the
legal, policy and equity issues
involved.’’ 121
36. In the FY 2016 NPRM, the
Commission revisited the disparate
113 See FY 2015 Report and Order, 30 FCC Rcd
10273, para. 12; 80 FR 55775.
114 See, e.g., International Settlement Rates, IB
Docket No. 96–261, Report and Order, 12 FCC Rcd
19806 (62 FR 45758, August 29, 1997), Report and
Order on Reconsideration and Order Lifting Stay,
14 FCC Rcd 9256 (64 FR 47699, September 1, 1999),
aff’d sub nom. Cable & Wireless, 166 F.3d 1224.
115 See FY 2015 Report and Order, 30 FCC Rcd
10273, para. 12; 80 FR 55775.
116 Assessment and Collection of Regulatory Fees
for Fiscal Year 2008, Second Report and Order, 24
FCC Rcd 4208, 4214–16, paras. 13–17 (2009)
(Submarine Cable Order); 74 FR 22104, (May 12,
2009).
117 Submarine Cable Order, 24 FCC Rcd at 4213,
para. 9; 74 FR 22104, 22106.
118 The prior rule assessed regulatory fees based
on the number of active circuits on the previous
December 31.
119 Submarine Cable Order, 24 FCC Rcd at 4214–
16, paras. 13–17; 74 FR 22104, 22107–8.
120 Id., Submarine Cable Order, 24 FCC Rcd at
4208–4209, para. 1; 74 FR 22104.
121 Assessment and Collection of Regulatory Fees
for Fiscal Year 2009, Report and Order, 24 FCC Rcd
10301, 10306–07, paras. 16–17 (2009); 74 FR 40089.
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44329
treatment of terrestrial and satellite IBCs
`
vis-a-vis submarine IBCs,122 but
subsequently decided that the record
was insufficient to change the fee
methodology.123 In the FY 2017 NPRM,
the Commission again sought comment
on how to update and improve the
regulatory fee assessment for terrestrial
and satellite IBCs. Specifically, the
Commission sought comment on several
issues raised by Level 3:124 Adopting a
flat, per-provider fee, similar to the
submarine cable regulatory fee
methodology, based on capacity 125 and
including all terrestrial IBCs, i.e., both
common carrier and non-common
carrier, for regulatory fee purposes.126
We also sought comment on eliminating
the IBC regulatory fee for satellite IBCs
and whether we should continue to
assess regulatory fees based on IBCs that
were active as of December 31 of the
prior year.127
1. Including Non-Common Carrier IBCs
37. We agree with the commenters,
Level 3 and AT&T, that a methodology
for terrestrial and satellite IBC
regulatory fees based on circuits should
be consistent with the submarine cable
methodology and include common
carrier and non-common carrier
terrestrial IBCs. Level 3 explains that
including non-common carrier IBCs will
‘‘eliminate a major incentive and
opportunity providers currently have to
underreport the number of IBCs they
have in service.’’ 128 As AT&T observes,
such an approach treats all terrestrial
IBC providers equitably and reduces
fees by increasing the payment units.129
For these reasons, we find no reason to
continue excluding non-common carrier
terrestrial IBCs from regulatory fees and
adopt our proposal to include both
common carrier and non-common
carrier terrestrial IBCs, consistent with
122 FY 2016 NPRM, 31 FCC Rcd at 5764–65, paras.
15–16; 81 FR 35680.
123 FY 2016 Report and Order, 31 FCC Rcd at
10343, para. 11; 81 FR 65926. Level 3 had initially
proposed the flat fee methodology, for common
carrier and non-common carrier providers, assessed
based on the total capacity in Gbps. See Level 3
Comments, filed in MD Docket No. 16–166 (filed
June 23, 2016), at 3–5.
124 Level 3 Comments, filed in MD Docket No.
16–166 (filed June 23, 2016).
125 The submarine cable fee is based on capacity
per system; the proposed terrestrial and satellite fee
would be based on overall capacity, but not on a
per system basis.
126 FY 2017 NPRM, 32 FCC Rcd at 4536–38, paras.
23–27; 82 FR 26019.
127 47 CFR 43.62(a)(1). Commenters support
continuing to assess regulatory fees based on IBCs
that were active as of December 31 of the prior year
and we see no reason to change this methodology
at this time.
128 Level 3 June 29, 2017 ex parte at 1.
129 AT&T Comments at 2 & Reply Comments at
1.
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the submarine cable regulatory fee
methodology.
38. Adding non-common carrier
terrestrial IBCs to the regulatory fee
schedule is a permitted amendment, as
defined in section 9(b)(3) of the Act,130
and pursuant to section 9(b)(4)(B),131
must be submitted to Congress at least
90 days before it will be effective. For
that reason, this new fee will be
included in the regulatory fee
proceeding for FY 2018.
2. Satellite IBCs
39. In the FY 2017 NPRM, we sought
comment on whether to eliminate the
IBC regulatory fee for satellite providers
of IBCs.132 SIA contends that the fee
should be eliminated because it does
not correspond with substantive work
by the Commission and is overly
burdensome for satellite operators to
calculate.133 According to SIA,
calculating the number of circuits takes
at least ten hours for in-house counsel
and additional personnel in other
departments are responsible for
collecting data for this calculation.134
The flat fee methodology for terrestrial
and satellite IBCs should significantly
reduce any burden of collecting data
described by SIA. After reviewing the
record, we do not see any reason to
eliminate this fee category. Instead, we
are moving toward a more consistent
regulatory fee methodology for all IBCs
and a less burdensome process for all
regulatees.
3. Fee Based on Circuits as of December
31
40. In the FY 2017 NPRM, we sought
comment on whether to assess the
number of active circuits on systems
active as of December 31 of the prior
year or assess fees on IBCs that were
active at any point during the preceding
calendar year.135 Level 3 and AT&T
argue that the Commission should
continue to assess regulatory fees based
on IBCs that were active as of December
31 of the prior year because it is
significantly less burdensome for
carriers to identify circuits that are
active at a fixed point in time as
opposed to at any point during the
preceding year.136 We agree that the
burdens associated with requiring
providers to count the number of active
130 47
U.S.C. 159(b)(3).
U.S.C. 159(b)(4)(B).
132 FY 2017 NPRM, 32 FCC Rcd at 4537–38, para.
26; 82 FR 26019.
133 SIA Comments at 4–5.
134 SIA Comments at 5, note 18.
135 FY 2017 NPRM, 32 FCC Rcd at 4538, para. 26;
82 FR 26019.
136 Level 3 Comments at 2; AT&T Reply
Comments at 5–6.
131 47
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circuits at any point during the
preceding year does not outweigh the
benefits. Therefore, we will retain the
current requirement of assessing fees on
systems active as of December 31 of the
prior year.
G. Increasing the De Minimis Threshold
41. Under the Commission’s current
de minimis rule for regulatory fee
payments, a regulatee is exempt from
paying regulatory fees if the sum total of
all of its regulatory fee liabilities for
annual regulatory fees is $500 or less for
the fiscal year.137 The Commission
increased the de minimis threshold
from $10 to $500 in the FY 2014 Report
and Order.138 The higher threshold
reflected the estimated costs of
collecting an unpaid regulatory fee, i.e.,
at least $350 in direct costs. The
Commission’s estimate of approximately
$350 per unpaid fee excluded overhead
or other costs involved in regulatory fee
collection.139 In addition, the
Commission observed that setting the de
minimis threshold at $500 was unlikely
to reduce fee collections to an amount
below the full amount of the
Commission’s annual appropriation.140
42. In the FY 2014 regulatory fee
proceeding, commenters had argued the
threshold should be increased to $750
or $1,000.141 In response, the
Commission adopted a new threshold of
$500 for annual regulatory fee and
committed to further monitor the de
minimis threshold and consider
whether to increase the threshold or
revise on some other basis.142 In the FY
2017 NPRM, we sought comment on
increasing the de minimis threshold to
$1,000 to improve the cost effectiveness
of the Commission’s collection of
regulatory fees.143 Commenters support
an increase in the de minimis
threshold.144
43. In general, we believe the
Commission’s operational costs
associated with processing and
collecting these smaller fees, outweigh
the benefits of such payments. For
example, payors between $500 and
$1,000 account for less than one percent
137 FY 2014 Report and Order, 29 FCC Rcd at
10774–76, para. 18–21; 79 FR 54190.
138 Id.
139 Id., FY 2014 Report and Order, 29 FCC Rcd
at 10775, para. 20 & n. 62; 79 FR 54190.
140 Id.
141 Id.
142 Id., FY 2014 Report and Order, 29 FCC Rcd
at 10775, para. 20; 79 FR 54190.
143 Id. (observing that many small entities ‘‘are
subject to little Commission oversight and
regulation which serves to further exacerbate this
inequity [of the administrative burden].’’).
144 ACA Comments at 7–10; CMA Comments at 4;
EWA Comments at 2; NAB Comments at 1–2;
Romar Reply Comments at 2–3.
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of all regulatory fee payments. And yet
processing and collecting these fees
generates a disproportionate amount of
work for Commission staff. Specifically,
the cost of researching, creating a bill to
send to a non-payor, and completing all
follow-up discussion and
correspondence has increased since
2014’s $350 estimate, and that does not
even include the cost of overhead and
administering the regulatory fee
program.145 The Commission has found
that smaller entities with regulatory fees
that fall within this range are less likely
to pay on a timely basis and
consequently use more Commission
resources for fee collection.146
Nonpayment by these small entities
then often results in the escalation of
the Commission’s administrative costs
and a disproportionate use of FTE
resources. As such, the marginal benefit
to Commission operations of assessing,
billing, and collecting regulatory fees on
regulatees that would owe less than
$1,000 is minute. In addition, setting the
threshold at $1,000 is unlikely to reduce
fee collections to an amount below the
full amount of the Commission’s annual
appropriation because the additional
amount that would no longer be
collected is relatively small. We
conclude that raising the de minimis
threshold to $1,000 is justified by
reducing the Commission’s cost in
collection of regulatory fees, thus
allowing a more efficient allocation of
Commission resources.
44. We also sought comment on
whether we should include multi-year
wireless licenses in the de minimis
threshold. EWA explains, and we agree,
that it would be difficult to administer
a de minimis threshold for multi-year
licenses.147 ACA proposes that we adopt
a de minimis threshold for small cable
and IPTV operators of 1000 or fewer
subscribers.148 After analyzing this issue
we conclude that it would be
administratively difficult to have both a
per subscriber de minimis threshold and
a $1000 de minimis threshold at the
same time. Many cable operators also
have CARS licenses and offer other
services, such as VoIP, and it would be
difficult to calculate if they exceed the
de minimis threshold with two different
thresholds.
45. Accordingly, the de minimis
threshold we adopt today applies only
to filers of annual regulatory fees for FY
145 Id.
146 Id.
147 EWA
Comments at 2–4.
Comments at 9 (explaining that the small
operators may also provide VoIP services and may
not be de minimis under the $1000 threshold
proposed).
148 ACA
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2017 and not multi-year filings.149 This
de minimis exemption from the
payment of regulatory fees applies to the
sum of all annual regulatory fee
obligations that a regulatee has for all
applicable fee categories; not to
individual payments for each category
separately. The Commission will
implement the de minimis threshold of
$1,000 beginning immediately. The de
minimis status is not a permanent
exemption from regulatory fees. Rather,
each regulatee will need to reevaluate
annually to determine whether its total
liability for annual regulatory fees falls
at or below the threshold given any
changes that the Commission may make
in its regulatory fees from year to year.
V. Procedural Matters
A. Payment of Regulatory Fees
1. Checks Will Not Be Accepted for
Payment of Annual Regulatory Fees
46. Pursuant to an Office of
Management and Budget (OMB)
directive,150 the Commission is moving
towards a paperless environment,
extending to disbursement and
collection of select federal government
payments and receipts.151 In 2015, the
Commission stopped accepting checks
(including cashier’s checks and money
orders) and the accompanying hardcopy
forms (e.g., Forms 159, 159–B, 159–E,
159–W) for the payment of regulatory
fees.152 All regulatory fee payments
must be made by online Automated
Clearing House (ACH) payment, online
credit card, or wire transfer. Any other
form of payment (e.g., checks, cashier’s
checks, or money orders) will be
rejected. For payments by wire, a Form
159–E should still be transmitted via fax
so that the Commission can associate
the wire payment with the correct
regulatory fee information.
2. Credit Card Transaction Levels
47. Since June 1, 2015, in accordance
with U.S. Treasury Announcement No.
A–2014–04 (July 2014), the amount that
can be charged on a credit card for
transactions with federal agencies has
been limited to $24,999.99.153
149 See FY 2014 Report and Order, 29 FCC Rcd
at 10775, para. 21 (explaining how to calculate the
regulatory fee total to determine if it is below the
de minimis threshold); 79 FR 54190.
150 Office of Management and Budget (OMB)
Memorandum M–10–06, Open Government
Directive, Dec. 8, 2009; see also https://
www.whitehouse.gov/the-press-office/2011/06/13/
executive-order-13576-delivering-efficient-effectiveand-accountable-gov.
151 See U.S. Department of the Treasury, Open
Government Plan 2.1, Sept. 2012.
152 FY 2015 Report and Order, 30 FCC Rcd at
10282–83, para. 35; 80 FR 55775.
153 Customers who owe an amount on a bill, debt,
or other obligation due to the federal government
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Transactions greater than $24,999.99
will be rejected. This limit applies to
single payments or bundled payments of
more than one bill. Multiple
transactions to a single agency in one
day may be aggregated and treated as a
single transaction subject to the
$24,999.99 limit. Customers who wish
to pay an amount greater than
$24,999.99 should consider available
electronic alternatives such as Visa or
MasterCard debit cards, ACH debits
from a bank account, and wire transfers.
Each of these payment options is
available after filing regulatory fee
information in Fee Filer.
3. Payment Methods
48. During the fee season for
collecting FY 2017 regulatory fees,
regulatees can pay their fees by credit
card through Pay.gov,154 ACH, debit
card,155 or by wire transfer. Additional
payment instructions are posted at
https://transition.fcc.gov/fees/
regfees.html. The receiving bank for all
wire payments is the U.S. Treasury,
New York, New York. When making a
wire transfer, regulatees must fax a copy
of their Fee Filer generated Form 159–
E to the Federal Communications
Commission at (202) 418–2843 at least
one hour before initiating the wire
transfer (but on the same business day)
so as not to 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 https://transition.fcc.gov/
fees/wiretran.html.
4. De Minimis Regulatory Fees
49. Regulatees whose total FY 2017
annual regulatory fee liability, including
are prohibited from splitting the total amount due
into multiple payments. Splitting an amount owed
into several payment transactions violates the credit
card network and Fiscal Service rules. An amount
owed that exceeds the Fiscal Service maximum
dollar amount, $24,999.99, may not be split into
two or more payment transactions in the same day
by using one or multiple cards. Also, an amount
owed that exceeds the Fiscal Service maximum
dollar amount may not be split into two or more
transactions over multiple days by using one or
more cards.
154 In accordance with U.S. Treasury Financial
Manual Announcement No. A–2014–04 (July 2014),
the amount that may be charged on a credit card
for transactions with federal agencies has been
reduced to $24,999.99.
155 In accordance with U.S. Treasury Financial
Manual Announcement No. A–2012–02, the
maximum dollar-value limit for debit card
transactions is eliminated. Only Visa and
MasterCard branded debit cards are accepted by
Pay.gov.
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44331
all categories of fees for which payment
is due, is $1,000 or less are exempt from
payment of FY 2017 regulatory fees. The
de minimis threshold applies only to
filers of annual regulatory fees (not
regulatory fees paid through multi-year
filings), and is not a permanent
exemption. Regulatees will need to
reevaluate their total fee liability each
fiscal year to determine whether they
meet the de minimis exemption.
5. Standard Fee Calculations and
Payment Dates
50. 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 that were granted on or before
October 1, 2016 for AM/FM radio
stations, VHF/UHF full service
television stations, and satellite
television stations. Regulatory fees must
be paid for all broadcast facility licenses
granted on or before October 1, 2016.
• Wireline (Common Carrier)
Services: Regulatory fees must be paid
for authorizations that were granted on
or before October 1, 2016. In instances
where a permit or license is transferred
or assigned after October 1, 2016,
responsibility for payment rests with the
holder of the permit or license as of the
fee due date. Audio bridging service
providers are included in this
category.156 For Responsible
Organizations (RespOrgs) that manage
Toll Free Numbers (TFN), regulatory
fees should be paid on all working,
assigned, and reserved toll free
numbers, as well as toll free numbers
that are in any other status as defined
in § 52.103 of the Commission’s
rules.157 The unit count should be based
on toll free numbers managed by
RespOrgs on or about December 31,
2016.
• 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,
2016. The number of subscribers, units,
or telephone numbers on December 31,
2016 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,
2016, responsibility for payment rests
with the holder of the permit or license
as of the fee due date.
156 Audio bridging services are toll
teleconferencing services.
157 47 CFR 52.103.
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• Wireless Services, Multi-year fees:
The first eight regulatory fee categories
in our Schedule of Regulatory Fees in
Table 4 pay ‘‘small multi-year wireless
regulatory fees.’’ Entities pay these
regulatory fees in advance for the entire
amount period covered by the five-year
or ten-year terms of their initial licenses,
and pay regulatory fees again only when
the license is renewed or a new license
is obtained. We include these fee
categories in our rulemaking to
publicize our estimates of the number of
‘‘small multi-year wireless’’ licenses
that will be renewed or newly obtained
in FY 2017.
• Multichannel Video Programming
Distributor Services (cable television
operators, CARS licensees, DBS, and
IPTV): Regulatory fees must be paid for
the number of basic cable television
subscribers as of December 31, 2016.158
Regulatory fees also must be paid for
CARS licenses that were granted on or
before October 1, 2016. In instances
where a permit or license is transferred
or assigned after October 1, 2016,
responsibility for payment rests with the
holder of the permit or license as of the
fee due date. For providers of DBS
service and IPTV-based MVPDs,
regulatory fees should be paid based on
a subscriber count on or about
December 31, 2016. In instances where
a permit or license is transferred or
assigned after October 31, 2016,
responsibility for payment rests with the
holder of the permit or license as of the
due date.
• International Services: Regulatory
fees must be paid for (1) earth stations
and (2) geostationary orbit space
stations and non-geostationary orbit
satellite systems that were licensed and
operational on or before October 1,
2016. In instances where a permit or
license is transferred or assigned after
October 1, 2016, 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, 2016. In instances where a license is
transferred or assigned after October 1,
158 Cable television system operators should
compute their number of 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 2016, rather than on a count as of
December 31, 2016.
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2016, responsibility for payment rests
with the holder of the license as of the
fee due date. For regulatory fee
purposes, the allocation in FY 2017 will
remain at 87.6 percent for submarine
cable and 12.4 percent for satellite/
terrestrial facilities.
• International Services: (Terrestrial
and Satellite Services): Regulatory fees
for Terrestrial and Satellite 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, 2016 in any terrestrial or
satellite transmission facility for the
provision of service to an end user or
resale carrier. When calculating the
number of such active circuits, the
facilities-based common carriers must
include circuits used by themselves or
their affiliates. In addition, noncommon carrier satellite operators must
pay a fee for each circuit they and their
affiliates hold and each circuit sold or
leased to any customer, other than an
international common carrier
authorized by the Commission to
provide U.S. international common
carrier services. For these purposes,
‘‘active circuits’’ include backup and
redundant circuits as of December 31,
2016. Whether circuits are used
specifically for voice or data is not
relevant for purposes of determining
that they are active circuits.159 In
instances where a permit or license is
transferred or assigned after October 1,
2016, responsibility for payment rests
with the holder of the permit or license
as of the fee due date. For regulatory fee
purposes, the allocation in FY 2017 will
remain at 87.6 percent for submarine
cable and 12.4 percent for satellite/
terrestrial facilities.160
B. Commercial Mobile Radio Service
(CMRS) Cellular and Mobile Services
Assessments
51. The Commission will compile
data from the Numbering Resource
Utilization Forecast (NRUF) report that
is based on ‘‘assigned’’ telephone
number (subscriber) counts that have
been adjusted for porting to net Type 0
ports (‘‘in’’ and ‘‘out’’).161 This
information of telephone numbers
(subscriber count) will be posted on the
Commission’s electronic filing and
159 We encourage terrestrial and satellite service
providers to seek guidance from the International
Bureau’s Telecommunications and Analysis
Division to verify their IBC reporting processes to
ensure that their calculation methods comply with
our rules.
160 We remind facilities-based common carriers to
review their reporting processes to ensure that they
accurately calculate and report IBCs.
161 See FY 2005 Report and Order, 20 FCC Rcd
at 12264, paras. 38–44; 70 FR 41967.
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payment system (Fee Filer) along with
the carrier’s Operating Company
Numbers (OCNs).
52. A carrier wishing to revise its
telephone number (subscriber) count
can do so by accessing Fee Filer and
follow the prompts to revise their
telephone number counts. Any revisions
to the telephone number counts should
be accompanied by an explanation or
supporting documentation.162 The
Commission will then review the
revised count and supporting
documentation and either approve or
disapprove the submission in Fee Filer.
If the submission is disapproved, the
Commission will contact the provider to
afford the provider an opportunity to
discuss its revised subscriber count and/
or provide additional supporting
documentation. If we receive no
response from the provider, or we do
not reverse our initial disapproval of the
provider’s revised count submission, the
fee payment must be based on the
number of subscribers listed initially in
Fee Filer. Once the timeframe for
revision has passed, the telephone
number counts are final and are the
basis upon which CMRS regulatory fees
are to be paid. Providers can view their
final telephone counts online in Fee
Filer. A final CMRS assessment letter
will not be mailed out.
53. Because some carriers do not file
the NRUF report, they may not see their
telephone number counts in Fee Filer.
In these instances, the carriers should
compute their fee payment using the
standard methodology that is currently
in place for CMRS Wireless services
(i.e., compute their telephone number
counts as of December 31, 2016), and
submit their fee payment accordingly.
Whether a carrier reviews its telephone
number counts in Fee Filer or not, the
Commission reserves the right to audit
the number of telephone numbers for
which regulatory fees are paid. In the
event that the Commission determines
that the number of telephone numbers
that are paid is inaccurate, the
Commission will bill the carrier for the
difference between what was paid and
what should have been paid.
C. Enforcement
54. To be considered timely,
regulatory fee payments must be made
electronically by the payment due date
for regulatory fees. Section 9(c) of the
Act requires us to impose a late
payment penalty of 25 percent of the
unpaid amount to be assessed on the
162 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 a reason for the change.
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first day following the deadline for
filing these fees.163 Failure to pay
regulatory fees and/or any late penalty
will subject regulatees to sanctions,
including those set forth in § 1.1910 of
the Commission’s rules,164 which
generally requires the Commission to
withhold action on ‘‘applications,
including on a petition for
reconsideration or any application for
review of a fee determination, or
requests for authorization by any entity
found to be delinquent in its debt to the
Commission’’ and in the DCIA.165 We
also assess administrative processing
charges on delinquent debts to recover
additional costs incurred in processing
and handling the debt pursuant to the
DCIA and § 1.1940(d) of the
Commission’s rules.166 These
administrative processing charges will
be assessed on any delinquent
regulatory fee, in addition to the 25
percent late charge penalty. In the case
of partial payments (underpayments) of
regulatory fees, the payor 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.
55. Pursuant to the ‘‘red light rule,’’
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.167 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).168 Pursuant to a pilot program,
we have initiated procedures to transfer
debt to the Centralized Receivables
Service at the U.S. Treasury, as
described below.
D. Transfers of Unpaid Debt to
Centralized Receivables Service (CRS),
U.S. Treasury
56. Under section 9 of the Act,
Commission rules, and federal debt
collection laws, a licensee’s regulatory
fee is due on the first day of the fiscal
year and payable at a date established in
the Commission’s annual regulatory fee
Report and Order. In October 2015, the
Commission, under revised procedures,
began transferring unpaid regulatory fee
receivables directly to the CRS at the
U.S. Treasury rather than trying to
collect the debt itself and then
transferring the remaining unpaid debts
to Treasury. Under revised procedures,
44333
the Commission can transfer delinquent
debt to Treasury for further collection
action within 120 days after the date of
delinquency.169 However, regulatees
will not likely see any substantial
change in the current procedures of how
past due debts are to be paid, except
that the debts will be handled by CRS
(U.S. Treasury) rather than by the
Commission.
E. Effective Date
57. Providing a 30-day period after
Federal Register publication before this
Report and Order becomes effective as
required by 5 U.S.C. 553(d) will not
allow sufficient time to collect the FY
2017 fees before FY 2017 ends on
September 30, 2017. For this reason,
pursuant to 5 U.S.C. 553(d)(3), we find
there is good cause to waive the
requirements of section 553(d), and this
Report and Order will become effective
upon publication in the Federal
Register. Because payments of the
regulatory fees will not actually be due
until late September, persons affected
by this Report and Order will still have
a reasonable period in which to make
their payments and thereby comply
with the rules established herein.
VI. Additional Tables
Table 2—Commenters—Initial
Comments
Commenter
Abbreviation
American Cable Association ...........................................................................................................................................
Arso Radio Corporation ..................................................................................................................................................
AT&T Services, Inc. ........................................................................................................................................................
CenturyLink, Inc. .............................................................................................................................................................
CRC Broadcasting Company, Inc ..................................................................................................................................
Critical Messaging Association .......................................................................................................................................
DISH Network, L.L.C. and AT&T Services, Inc ..............................................................................................................
Enterprise Wireless Alliance ...........................................................................................................................................
Frontier Communications Corporation ............................................................................................................................
ITTA—The Voice of America’s Broadband Providers ....................................................................................................
Level 3 Communications, LLC .......................................................................................................................................
National Association of Broadcasters .............................................................................................................................
NCTA—The Internet and Television Association ...........................................................................................................
Quincy Media, Inc. ..........................................................................................................................................................
Ramar Communications, Inc. .........................................................................................................................................
Satellite Industry Association ..........................................................................................................................................
Submarine Cable Coalition .............................................................................................................................................
ACA.
Arso.
AT&T.
CenturyLink.
CRC.
CMA.
DISH and AT&T.
EWA.
Frontier.
ITTA.
Level 3.
NAB.
NCTA.
QMI.
Ramar.
SIA.
Coalition.
Commenters—Reply Comments
American Cable Association ...........................................................................................................................................
AT&T Services, Inc. ........................................................................................................................................................
CenturyLink, Inc. .............................................................................................................................................................
CTIA® ..............................................................................................................................................................................
Level 3 Communications, LLC .......................................................................................................................................
163 47
U.S.C. 159(c).
47 CFR 1.1910.
165 Delinquent debt owed to the Commission
triggers the ‘‘red light rule,’’ which places a hold on
the processing of pending applications, fee offsets,
and pending disbursement payments. 47 CFR
164 See
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1.1910, 1.1911, 1.1912. 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 (69 FR 27843, May 17,
2004); 47 CFR part 1, subpart O, Collection of
Claims Owed the United States.
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166 47
ACA.
AT&T.
CenturyLink.
CTIA.
Level 3.
CFR 1.1940(d).
47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
168 47 U.S.C. 159.
169 See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR
1.1917.
167 See
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Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations
Commenter
Abbreviation
Romar Communications, Inc. .........................................................................................................................................
Romar.
Commenter and date filed
Abbreviation
Ex Parte Filings
American Cable Association (Aug. 30, 2017) ................................................................................................................
AT&T Services, Inc. (July 27, 2017) ..............................................................................................................................
DISH Network, L.L.C. (Aug. 22, 2017) ...........................................................................................................................
Level 3 Communications, LLC (June 29, July 24, 2017) ...............................................................................................
Ramar Communications, Inc. (July 21, Aug. 15, 21, 22, 2017) .....................................................................................
Regulatory fees in the top seven fee
categories are collected by the
Commission in advance to cover the
term of the license and are submitted at
the time the application is filed.
Fee category
Pro-rated
FY 2017
revenue requirement
10
10
10
10
10
10
10
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
625,000
3,110,000
3,125,000
1,035,000
470,000
192,500
220,000
313,500
3,875,875
1,400,175
4,587,900
9,678,200
11,849,725
9,300
192,425
224,000
8,433,825
6,348,825
5,525,025
4,301,600
1,825,000
15,000
1,785,420
220,875
64,200,000
9,180,000
142,722,000
4,745,000
73,200,000
184,000
645,250
286,375
325,000
1,600,000
2,950,000
1,215,000
420,000
60,000
220,000
305,500
3,807,500
1,348,500
4,476,000
9,371,250
11,521,800
5,550
110,740
217,350
8,305,250
5,898,275
5,439,050
4,289,250
1,807,475
14,775
1,741,930
215,050
58,900,000
12,350,000
111,740,000
3,924,000
82,530,000
168,000
558,050
454,250
25
10
25
15
10
40
20
4,699
2,488
1,559
3,004
2,987
3,703
555
980
1,722
59,748
45,013
30,049
14,976
4,924
4,925
428
935
.9529
.3800
0.00302
0.1174
0.210
0.0800
800
800
25
10
25
15
10
40
20
4,700
2,500
1,550
3,000
2,975
3,700
555
980
1,725
59,750
45,025
30,050
14,975
4,925
4,925
430
935
.95
.38
0.00302
0.12
0.21
0.080
800
800
325,000
1,600,000
2,950,000
1,215,000
420,000
60,000
220,000
305,500
3,807,500
1,348,500
4,476,000
9,371,250
11,521,800
5,550
110,740
217,350
8,305,250
5,898,275
5,439,050
4,267,875
1,807,475
14,775
1,741,930
215,050
58,900,000
12,350,000
111,740,000
3,924,000
82,530,000
168,000
696,000
316,000
1
1
1
1
1
....................
....................
....................
638,000
5,486,242
1,173,000
13,155,125
911,700
384,890,362
384,012,497
877,865
801,295
5,660,765
1,224,000
13,669,725
947,450
358,571,405
356,710,992
1,860,413
.0267
137,437
360
140,924
135,343
....................
....................
....................
.03
137,425
360
140,925
135,350
....................
....................
....................
901,680
5,660,261
1,224,000
13,669,725
947,450
358,670,986
356,710,992
1,959,994
1,300
16,000
11,800
8,100
4,200
150
1,100
65
1,523
870
1,492
3,150
3,114
10
113
126
139
131
181
285
367
3
4,051
230
62,000,000
32,500,000
$37,000,000,000
32,700,000
393,000,000
2,100,000
870
395
30,056,000
41.19
3,400
97
7
............................
............................
............................
Table 3—Calculation of FY 2017
Revenue Requirements and Pro-Rata
Fees
FY 2016
revenue
estimate
FY 2017
payment units
PLMRS (Exclusive Use) ....................................................
PLMRS (Shared use) ........................................................
Microwave .........................................................................
Marine (Ship) .....................................................................
Aviation (Aircraft) ...............................................................
Marine (Coast) ..................................................................
Aviation (Ground) ..............................................................
AM Class A 4 .....................................................................
AM Class B 4 .....................................................................
AM Class C 4 .....................................................................
AM Class D 4 .....................................................................
FM Classes A, B1 & C3 4 .................................................
FM Classes B, C, C0, C1 & C2 4 ......................................
AM Construction Permits 1 ................................................
FM Construction Permits 1 ................................................
Satellite TV ........................................................................
Digital TV Markets 1–10 ...................................................
Digital TV Markets 11–25 .................................................
Digital TV Markets 26–50 .................................................
Digital TV Markets 51–100 ...............................................
Digital TV Remaining Markets ..........................................
Digital TV Construction Permits1 ......................................
LPTV/Translators/Boosters/Class A TV ............................
CARS Stations ..................................................................
Cable TV Systems, including IPTV ...................................
Direct Broadcast Satellite (DBS) .......................................
Interstate Telecommunication Service Providers .............
Toll Free Numbers ............................................................
CMRS Mobile Services (Cellular/Public Mobile) ...............
CMRS Messag. Services ..................................................
BRS 2 .................................................................................
LMDS ................................................................................
Per 64 kbps Int’l Bearer Circuits Terrestrial (Common) &
Satellite (Common & Non-Common) .............................
Submarine Cable Providers (see chart in Appendix C) 3
Earth Stations ....................................................................
Space Stations (Geostationary) ........................................
Space Stations (Non-Geostationary) ................................
****** Total Estimated Revenue to be Collected ..............
****** Total Revenue Requirement ...................................
Difference ..........................................................................
ACA.
AT&T.
DISH.
Level 3.
Ramar.
Yrs
Computed
FY 2017
regulatory
fee
Rounded
FY 2017
Reg. fee
Expected
FY 2017
revenue
Notes on Table 3
1 The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set the regulatory fee to
an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction Permit revenues, and in the AM and FM
Construction Permit revenues, were offset by increases in the revenue totals for Digital television stations by market size, and in the AM and FM radio stations by
class size and population served, 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 (69 FR 72048, December 10, 2004).
3 The chart at the end of Table 4 lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from the adoption of
the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Report and Order and Further Notice of Proposed Rulemaking, 24 FCC Rcd 6388 (73 FR
50285, August 26, 2008) and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd 4208 (74 FR 22104, May
12, 2009).
4 The fee amounts listed in the column entitled ‘‘Rounded New FY 2017 Regulatory Fee’’ constitute a weighted average broadcast regulatory fee by class of service. The actual FY 2017 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4.
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Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations
Table 4—FY 2017 Schedule of
Regulatory Fees
Regulatory fees in the top eight fee
categories are collected by the
44335
Commission in advance to cover the
term of the license and are submitted at
the time the application is filed.
Annual
regulatory fee
(U.S. $s)
Fee category
PLMRS (per license) (Exclusive Use) (47 CFR part 90) ....................................................................................................................
Microwave (per license) (47 CFR part 101) ........................................................................................................................................
Marine (Ship) (per station) (47 CFR part 80) ......................................................................................................................................
Marine (Coast) (per license) (47 CFR part 80) ...................................................................................................................................
Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) ...........................................................................
PLMRS (Shared Use) (per license) (47 CFR part 90) ........................................................................................................................
Aviation (Aircraft) (per station) (47 CFR part 87) ................................................................................................................................
Aviation (Ground) (per license) (47 CFR part 87) ...............................................................................................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) .......................................................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) ..........................................................................................
Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27) ............................................................................
Local Multipoint Distribution Service (per call sign) (47 CFR part 101) .............................................................................................
AM Radio Construction Permits ..........................................................................................................................................................
FM Radio Construction Permits ..........................................................................................................................................................
Digital TV (47 CFR part 73) VHF and UHF Commercial:
Markets 1–10 ................................................................................................................................................................................
Markets 11–25 ..............................................................................................................................................................................
Markets 26–50 ..............................................................................................................................................................................
Markets 51–100 ............................................................................................................................................................................
Remaining Markets .......................................................................................................................................................................
Construction Permits ....................................................................................................................................................................
Satellite Television Stations (All Markets) ...........................................................................................................................................
Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74) .................................................................................
CARS (47 CFR part 78) ......................................................................................................................................................................
Cable Television Systems (per subscriber) (47 CFR part 76), Including IPTV ..................................................................................
Direct Broadcast Service (DBS) (per subscriber) (as defined by section 602(13) of the Act) ...........................................................
Interstate Telecommunication Service Providers (per revenue dollar) ...............................................................................................
Toll Free (per toll free subscriber) (47 CFR 52.101(f)) .......................................................................................................................
Earth Stations (47 CFR part 25) .........................................................................................................................................................
Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational station) (47 CFR part 100) ....................................................................................................................................................................
Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) .....................................................................
International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) ...............................................................................................
Submarine Cable Landing Licenses Fee (per cable system) .............................................................................................................
25
25
15
40
10
10
10
20
.21
.08
800
800
555
980
59,750
45,025
30,050
14,975
4,925
4,925
1,725
430
935
.95
.38
.00302
.12
360
140,925
135,350
.03
See Table
Below
FY 2017 RADIO STATION REGULATORY FEES
Population
served
AM Class A
<=25,000 ..................................................
25,001–75,000 .........................................
75,001–150,000 .......................................
150,001–500,000 .....................................
500,001–1,200,000 ..................................
1,200,001–3,000,00 .................................
3,000,001–6,000,00 .................................
>6,000,000 ...............................................
AM Class B
$895
1,350
2,375
3,550
5,325
7,975
11,950
17,950
AM Class C
$640
955
1,700
2,525
3,800
5,700
8,550
12,825
$555
830
1,475
2,200
3,300
4,950
7,400
11,100
AM Class D
$610
915
1,600
2,425
3,625
5,425
8,150
12,225
FM Classes
A, B1 & C3
$980
1,475
2,600
3,875
5,825
8,750
13,100
19,650
FM Classes
B, C, C0, C1
& C2
$1,100
1,650
2,925
4,400
6,575
9,875
14,800
22,225
INTERNATIONAL BEARER CIRCUITS—SUBMARINE CABLE
Submarine cable systems
(capacity as of December 31, 2016)
Fee amount
< 2.5 Gbps ...........................................................................................................................................................................................
2.5 Gbps or greater, but less than 5 Gbps .........................................................................................................................................
5 Gbps or greater, but less than 10 Gbps ..........................................................................................................................................
10 Gbps or greater, but less than 20 Gbps ........................................................................................................................................
20 Gbps or greater ..............................................................................................................................................................................
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$8,600
17,175
34,350
68,725
137,425
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Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations
Table 5—Sources of Payment Unit
Estimates for FY 2017
In order to calculate individual
service fees for FY 2017, we adjusted FY
2016 payment units for each service to
more accurately reflect expected FY
2017 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 Wireless
Telecommunications Bureau’s
Numbering Resource Utilization
Forecast.
We sought verification for these
estimates from multiple sources and, in
all cases, we compared FY 2017
estimates with actual FY 2016 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 2017
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 2017 payment
units are based on FY 2016 actual
payment units, it does not necessarily
mean that our FY 2017 projection is the
same number as in FY 2016. We have
either rounded the FY 2017 number or
adjusted it slightly to account for these
variables.
Fee category
Sources of payment unit estimates
Land Mobile (All), Microwave, Marine (Ship &
Coast), Aviation (Aircraft & Ground), Domestic Public Fixed.
Based on Wireless Telecommunications Bureau (WTB) projections of new applications and renewals taking into consideration existing Commission licensee data bases. Aviation (Aircraft)
and Marine (Ship) estimates have been adjusted to take into consideration the licensing of
portions of these services on a voluntary basis.
Based on WTB projection reports, and FY 16 payment data.
Based on WTB reports, and FY 16 payment data.
Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units.
Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units.
CMRS Cellular/Mobile Services .........................
CMRS Messaging Services ................................
AM/FM Radio Stations ........................................
Digital TV Stations ..............................................
(Combined VHF/UHF units) ................................
AM/FM/TV Construction Permits ........................
LPTV, Translators and Boosters, Class A Television.
BRS (formerly MDS/MMDS) ...............................
LMDS ..................................................................
Cable Television Relay Service (CARS) Stations.
Cable Television System Subscribers, Including
IPTV Subscribers.
Interstate Telecommunication Service Providers
Earth Stations .....................................................
Space Stations (GSOs & NGSOs) .....................
International Bearer Circuits ...............................
Submarine Cable Licenses .................................
Table 6—Factors, Measurements, and
Calculations That Determine 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, phase,
spacing, and orientation was retrieved,
as well as the theoretical pattern rootmean-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 augmented 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.
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Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units.
Based on CDBS data, adjusted for exemptions, and actual FY 2016 payment units.
Based on WTB reports and actual FY 2016 payment units.
Based on WTB reports and actual FY 2016 payment units.
Based on data from Media Bureau’s COALS database and actual FY 2016 payment units.
Based on publicly available data sources for estimated subscriber counts and actual FY 2016
payment units.
Based on FCC Form 499–Q data for the four quarters of calendar year 2016, the Wireline
Competition Bureau projected the amount of calendar year 2016 revenue that will be reported on 2017 FCC Form 499–A worksheets due in April, 2017.
Based on International Bureau (‘‘IB’’) licensing data and actual FY 2016 payment units.
Based on IB data reports and actual FY 2016 payment units.
Based on IB reports and submissions by licensees, adjusted as necessary.
Based on IB license information.
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. 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 2010 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
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for the predicted principal community
coverage area.
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 radialspecific ERP figure. The HAAT and ERP
figures were used in conjunction with
the Field Strength (50–50) propagation
curves specified in 47 CFR 73.313 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. The
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resulting distance to principal
community contours were used to form
a geographical polygon. Population
counting was accomplished by
determining which 2010 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.
Table 7—FY 2016 Schedule of
Regulatory Fees
Regulatory fees in the top eight fee
categories are collected by the
Commission in advance to cover the
term of the license and are submitted at
the time the application is filed.
Annual
regulatory fee
(U.S. $s)
Fee Category
PLMRS (per license) (Exclusive Use) (47 CFR part 90) ....................................................................................................................
Microwave (per license) (47 CFR part 101) ........................................................................................................................................
Marine (Ship) (per station) (47 CFR part 80) ......................................................................................................................................
Marine (Coast) (per license) (47 CFR part 80) ...................................................................................................................................
Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) ...........................................................................
PLMRS (Shared Use) (per license) (47 CFR part 90) ........................................................................................................................
Aviation (Aircraft) (per station) (47 CFR part 87) ................................................................................................................................
Aviation (Ground) (per license) (47 CFR part 87) ...............................................................................................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) .......................................................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) ..........................................................................................
Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27) ............................................................................
Local Multipoint Distribution Service (per call sign) (47 CFR part 101) .............................................................................................
AM Radio Construction Permits ..........................................................................................................................................................
FM Radio Construction Permits ..........................................................................................................................................................
Digital TV (47 CFR part 73) VHF and UHF Commercial:
Markets 1–10 ................................................................................................................................................................................
Markets 11–25 ..............................................................................................................................................................................
Markets 26–50 ..............................................................................................................................................................................
Markets 51–100 ............................................................................................................................................................................
Remaining Markets .......................................................................................................................................................................
Construction Permits ....................................................................................................................................................................
Satellite Television Stations (All Markets) ...........................................................................................................................................
Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74) .................................................................................
CARS (47 CFR part 78) ......................................................................................................................................................................
Cable Television Systems (per subscriber) (47 CFR part 76), Including IPTV ..................................................................................
Direct Broadcast Service (DBS) (per subscriber) (as defined by section 602(13) of the Act) ...........................................................
Interstate Telecommunication Service Providers (per revenue dollar) ...............................................................................................
Toll Free (per toll free subscriber) (47 CFR 52.101(f)) .......................................................................................................................
Earth Stations (47 CFR part 25) .........................................................................................................................................................
Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational station) (47 CFR part 100) ....................................................................................................................................................................
Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) .....................................................................
International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) ...............................................................................................
Submarine Cable Landing Licenses Fee (per cable system) .............................................................................................................
25
25
15
40
10
10
10
20
.20
.08
725
725
620
1,075
60,675
45,675
30,525
15,200
5,000
5,000
1,750
455
775
1.00
.27
.00371
.13
345
138,475
151,950
.02
See Table
Below
FY 2016 Schedule of Regulatory Fees:
(continued)
FY 2016 RADIO STATION REGULATORY FEES
Population
served
AM Class A
<=25,000 ..................................................
25,001–75,000 .........................................
75,001–150,000 .......................................
150,001–500,000 .....................................
500,001–1,200,000 ..................................
1,200,001–3,000,00 .................................
3,000,001–6,000,00 .................................
>6,000,000 ...............................................
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AM Class B
$990
$1,475
$2,200
$3,300
$5,500
$8,250
$11,000
$13,750
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AM Class C
$715
$1,075
$1,600
$2,375
$3,975
$5,950
$7,950
$9,950
Fmt 4700
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$620
$925
$1,375
$2,075
$3,450
$5,175
$6,900
$8,625
AM Class D
$685
$1,025
$1,525
$2,275
$3,800
$5,700
$7,600
$9,500
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FM Classes
A, B1 & C3
$1,075
$1,625
$2,400
$3,600
$6,000
$9,000
$12,000
$15,000
FM Classes
B, C, C0, C1
& C2
$1,250
$1,850
$2,750
$4,125
$6,875
$10,300
$13,750
$17,175
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Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations
FY 2016 SCHEDULE OF REGULATORY FEES
International Bearer Circuits—Submarine Cable
Submarine cable systems
(capacity as of December 31, 2015)
Fee amount
< 2.5 Gbps ...........................................................................................................................................................................................
2.5 Gbps or greater, but less than 5 Gbps .........................................................................................................................................
5 Gbps or greater, but less than 10 Gbps ..........................................................................................................................................
10 Gbps or greater, but less than 20 Gbps ........................................................................................................................................
20 Gbps or greater ..............................................................................................................................................................................
VII. Final Regulatory Flexibility
Analysis
58. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA),170 an Initial Regulatory
Flexibility Analysis (IRFA) was
included in the Notice of Proposed
Rulemaking.171 The Commission sought
written public comment on these
proposals including comment on the
IRFA. This Final Regulatory Flexibility
Analysis (FRFA) conforms to the
IRFA.172
A. Need for, and Objectives of, the
Report and Order
59. In this Report and Order, we
conclude the Assessment and Collection
of Regulatory Fees for Fiscal Year (FY)
2017 proceeding to collect $356,710,992
in regulatory fees for FY 2017, pursuant
to section 9 of the Communications Act
of 1934, as amended (Communications
Act or Act).173 These regulatory fees
will be due in September 2017. Under
section 9 of the Communications Act,
regulatory fees are mandated by
Congress and collected to recover the
regulatory costs associated with the
Commission’s enforcement, policy and
rulemaking, user information, and
international activities in an amount
that can be reasonably expected to equal
the amount of the Commission’s annual
appropriation.174
60. This FY 2017 Report and Order
adopts a regulatory fee schedule that
includes the following noteworthy
changes from prior years: (1) A
reallocation of 38 FTEs in the Wireline
Competition Bureau from direct to
indirect; (2) a reallocation of four FTEs
from the Wireline Competition Bureau
to the Wireless Telecommunications
Bureau; (3) an updated regulatory fee for
Direct Broadcast Satellite (DBS)
providers, a subcategory in the cable
television and Internet Protocol
Television (IPTV) category; (4)
adjustments to the regulatory fees on
radio and television broadcasters; (5) an
increase in the de minimis threshold for
annual regulatory fee payments from
$500 to $1,000; and (6) the elimination
of the distinction between non-common
carrier and common carrier terrestrial
International Bearer Circuits (IBCs).
B. Summary of the Significant Issues
Raised by the Public Comments in
Response to the IRFA
61. None.
C. Description and Estimate of the
Number of Small Entities to Which the
Rules Will Apply
62. 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.175 The RFA generally defines
the term ‘‘small entity’’ as having the
same meaning as the terms ‘‘small
business,’’ ‘‘small organization,’’ and
‘‘small governmental jurisdiction.’’ 176
In addition, the term ‘‘small business’’
has the same meaning as the term
‘‘small business concern’’ under the
Small Business Act.177 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.178 Nationwide,
there are a total of approximately 27.9
175 5
U.S.C. 603(b)(3).
U.S.C. 601(6).
177 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.’’
178 15 U.S.C. 632.
176 5
170 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has
been amended by the Small Business Regulatory
Enforcement Fairness Act of 1996 (SBREFA), Public
Law Number 104–121, Title II, 110 Stat. 847 (1996).
171 Assessment and Collection of Regulatory Fees
for Fiscal Year 2017, Notice of Proposed
Rulemaking, MD Docket No. 17–134, 32 FCC Rcd
4526 (2017) (FY 2017 NPRM); 80 FR 26019, June 6,
2017.
172 5 U.S.C. 604.
173 47 U.S.C. 159.
174 47 U.S.C. 159(a).
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$8,325
16,650
33,300
66,600
133,200
million small businesses, according to
the SBA.179
63. Wired Telecommunications
Carriers. The U.S. Census Bureau
defines this industry as ‘‘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 communications networks.
Transmission facilities may be based on
a single technology or a combination of
technologies. Establishments in this
industry use the wired
telecommunications network facilities
that they operate to provide a variety of
services, such as wired telephony
services, including VoIP services, wired
(cable) audio and video programming
distribution, and wired broadband
internet services. By exception,
establishments providing satellite
television distribution services using
facilities and infrastructure that they
operate are included in this
industry.’’ 180 The SBA has developed a
small business size standard for Wired
Telecommunications Carriers, which
consists of all such companies having
1,500 or fewer employees.181 Census
data for 2012 shows that there were
3,117 firms that operated that year. Of
this total, 3,083 operated with fewer
than 1,000 employees.182 Thus, under
this size standard, most firms in this
industry can be considered small.
64. Local Exchange Carriers (LECs).
Neither the Commission nor the SBA
has developed a size standard for small
businesses specifically applicable to
local exchange services. The closest
applicable NAICS code category is
Wired Telecommunications Carriers as
defined in paragraph 6 of this FRFA.
Under the applicable SBA size standard,
such a business is small if it has 1,500
179 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ https://www.sba.gov/sites/
default/files/advocacy/SB-FAQ-2016_WEB.pdf.
180 https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
181 See 13 CFR 120.201, NAICS code 517110.
182 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid=
ECN_2012_US_51SSSZ5&prodType=table.
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Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations
or fewer employees.183 According to
Commission data, census data for 2012
shows that there were 3,117 firms that
operated that year. Of this total, 3,083
operated with fewer than 1,000
employees.184 The Commission
therefore estimates that most providers
of local exchange carrier service are
small entities that may be affected by
the rules adopted.
65. Incumbent LECs. Neither the
Commission nor the SBA has developed
a small business size standard
specifically for incumbent local
exchange services. The closest
applicable NAICS code category is
Wired Telecommunications Carriers as
defined in paragraph 6 of this FRFA.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.185 According to
Commission data, 3,117 firms operated
in that year. Of this total, 3,083 operated
with fewer than 1,000 employees.186
Consequently, the Commission
estimates that most providers of
incumbent local exchange service are
small businesses that may be affected by
the rules and policies adopted. Three
hundred and seven (307) Incumbent
Local Exchange Carriers reported that
they were incumbent local exchange
service providers.187 Of this total, an
estimated 1,006 have 1,500 or fewer
employees.188
66. Competitive Local Exchange
Carriers (Competitive LECs),
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 NAICS code
category is Wired Telecommunications
Carriers, as defined in paragraph 6 of
this FRFA. Under that size standard,
such a business is small if it has 1,500
or fewer employees.189 U.S. Census data
for 2012 indicate that 3,117 firms
operated during that year. Of that
number, 3,083 operated with fewer than
1,000 employees.190 Based on this data,
183 13
CFR 121.201, NAICS code 517110.
184 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
185 13 CFR 121.201, NAICS code 517110.
186 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
187 See Trends in Telephone Service, Federal
Communications Commission, Wireline
Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (September 2010)
(Trends in Telephone Service).
188 Id.
189 13 CFR 121.201, NAICS code 517110.
190 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid=
ECN_2012_US_51SSSZ5&prodType=table.
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the Commission concludes that most
Competitive LECS, CAPs, SharedTenant Service Providers, and Other
Local Service Providers, are small
entities. According to Commission data,
1,442 carriers reported that they were
engaged in the provision of either
competitive local exchange services or
competitive access provider services.191
Of these 1,442 carriers, an estimated
1,256 have 1,500 or fewer employees.192
In addition, 17 carriers have reported
that they are Shared-Tenant Service
Providers, and all 17 are estimated to
have 1,500 or fewer employees.193 Also,
72 carriers have reported that they are
Other Local Service Providers.194 Of this
total, 70 have 1,500 or fewer
employees.195 Consequently, based on
internally researched FCC data, 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.
67. Interexchange Carriers (IXCs).
Neither the Commission nor the SBA
has developed a definition for
Interexchange Carriers. The closest
NAICS code category is Wired
Telecommunications Carriers as defined
in paragraph 6 of this FRFA. The
applicable size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.196 U.S.
Census data for 2012 indicates that
3,117 firms operated during that year.
Of that number, 3,083 operated with
fewer than 1,000 employees.197
According to internally developed
Commission data, 359 companies
reported that their primary
telecommunications service activity was
the provision of interexchange
services.198 Of this total, an estimated
317 have 1,500 or fewer employees.199
Consequently, the Commission
estimates that most interexchange
service providers are small entities that
may be affected by the rules adopted.
68. Prepaid Calling Card Providers.
Neither the Commission nor the SBA
has developed a small business
definition specifically for prepaid
calling card providers. The most
appropriate NAICS code-based category
for defining prepaid calling card
191 See
Trends in Telephone Service, at Table 5.3.
192 Id.
193 Id.
194 Id.
195 Id.
196 13
CFR 121.201, NAICS code 517110.
197 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
198 See Trends in Telephone Service, at Table 5.3.
199 Id.
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44339
providers is Telecommunications
Resellers. This industry comprises
establishments engaged in purchasing
access and network capacity from
owners and operators of
telecommunications networks and
reselling wired and wireless
telecommunications services (except
satellite) to businesses and households.
Establishments in this industry resell
telecommunications; they do not
operate transmission facilities and
infrastructure. Mobile virtual networks
operators (MVNOs) are included in this
industry.200 Under the applicable SBA
size standard, such a business is small
if it has 1,500 or fewer employees.201
U.S. Census data for 2012 show that
1,341 firms provided resale services
during that year. Of that number, 1,341
operated with fewer than 1,000
employees.202 Thus, under this category
and the associated small business size
standard, the majority of these prepaid
calling card providers can be considered
small entities. According to Commission
data, 193 carriers have reported that
they are engaged in the provision of
prepaid calling cards.203 All 193 carriers
have 1,500 or fewer employees.204
Consequently, the Commission
estimates that the majority of prepaid
calling card providers are small entities
that may be affected by the rules
adopted.
69. Local Resellers. Neither the
Commission nor the SBA has developed
a small business size standard
specifically for 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.205 Census data for 2012
show that 1,341 firms provided resale
services during that year. Of that
number, 1,341 operated with fewer than
1,000 employees.206 Under this category
and the associated small business size
standard, the majority of these local
resellers can be considered small
entities. According to Commission data,
213 carriers have reported that they are
engaged in the provision of local resale
200 https://www.census.gov/cgi-bin/ssd/naics/
naicsrch.
201 13 CFR 121.201, NAICS code 517911.
202 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ5&prodType=table.
203 See Trends in Telephone Service, at Table 5.3.
204 Id.
205 13 CFR 121.201, NAICS code 517911.
206 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_51SSSZ5&
prodType=table.
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services.207 Of this total, an estimated
211 have 1,500 or fewer employees.208
Consequently, the Commission
estimates that the majority of local
resellers are small entities that may be
affected by the rules adopted.
70. Toll Resellers. The Commission
has not developed a definition for Toll
Resellers. The closest NAICS code
Category is Telecommunications
Resellers, and the SBA has developed a
small business size standard for the
category of Telecommunications
Resellers.209 Under that size standard,
such a business is small if it has 1,500
or fewer employees.210 Census data for
2012 show that 1,341 firms provided
resale services during that year. Of that
number, 1,341 operated with fewer than
1,000 employees.211 Thus, under this
category and the associated small
business size standard, the majority of
these resellers can be considered small
entities. According to Commission data,
881 carriers have reported that they are
engaged in the provision of toll resale
services.212 Of this total, an estimated
857 have 1,500 or fewer employees.213
Consequently, the Commission
estimates that the majority of toll
resellers are small entities.
71. Other Toll Carriers. Neither the
Commission nor the SBA has developed
a definition for small businesses
specifically applicable to Other Toll
Carriers. This category includes toll
carriers that do not fall within the
categories of interexchange carriers,
operator service providers, prepaid
calling card providers, satellite service
carriers, or toll resellers. The closest
applicable NAICS code category is for
Wired Telecommunications Carriers as
defined in paragraph 6 of this FRFA.
Under the applicable SBA size standard,
such a business is small if it has 1,500
or fewer employees.214 Census data for
2012 shows that there were 3,117 firms
that operated that year. Of this total,
3,083 operated with fewer than 1,000
employees.215 Thus, under this category
and the associated small business size
standard, most Other Toll Carriers can
be considered small. According to
internally developed Commission data,
284 companies reported that their
207 See
Trends in Telephone Service, at Table 5.3.
208 Id.
209 13
CFR 121.201, NAICS code 517911.
primary telecommunications service
activity was the provision of other toll
carriage.216 Of these, an estimated 279
have 1,500 or fewer employees.217
Consequently, the Commission
estimates that most Other Toll Carriers
are small entities.
72. Wireless Telecommunications
Carriers (except Satellite). This industry
comprises establishments engaged in
operating and maintaining switching
and transmission facilities to provide
communications via the airwaves.
Establishments in this industry have
spectrum licenses and provide services
using that spectrum, such as cellular
services, paging services, wireless
internet access, and wireless video
services.218 The appropriate size
standard under SBA rules is that such
a business is small if it has 1,500 or
fewer employees. For this industry,
Census data for 2012 show that there
were 967 firms that operated for the
entire year. Of this total, 955 firms had
fewer than 1,000 employees. Thus,
under this category and the associated
size standard, the Commission estimates
that the majority of wireless
telecommunications carriers (except
satellite) are small entities. Similarly,
according to internally developed
Commission data, 413 carriers reported
that they were engaged in the provision
of wireless telephony, including cellular
service, Personal Communications
Service (PCS), and Specialized Mobile
Radio (SMR) services.219 Of this total,
an estimated 261 have 1,500 or fewer
employees.220 Thus, using available
data, we estimate that the majority of
wireless firms can be considered small.
73. 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.’’ 221 These establishments also
produce or transmit visual programming
to affiliated broadcast television
stations, which in turn broadcast the
programs to the public on a
predetermined schedule. Programming
may originate in their own studio, from
an affiliated network, or from external
sources. The SBA has created the
following small business size standard
210 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ5&prodType=table.
211 Id.
212 Trends in Telephone Service, at Table 5.3.
213 Id.
214 13 CFR 121.201, NAICS code 517110.
215 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ5&prodType=table.
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216 Trends
in Telephone Service, at Table 5.3.
217 Id.
218 NAICS code 517210. See https://
www.census.gov/cgi-bin/ssd/naics/naiscsrch.
219 Trends in Telephone Service, at Table 5.3.
220 Id.
221 U.S. Census Bureau, 2012 NAICS code
Economic Census Definitions, https://
www.census.gov.cgi-bin/sssd/naics/naicsrch.
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for Television Broadcasting firms: those
having $38.5 million or less in annual
receipts.222 The 2012 Economic Census
reports that 751 television broadcasting
firms operated during that year. Of that
number, 656 had annual receipts of less
than $25 million per year. Based on that
Census data we conclude that most
firms that operate television stations are
small. The Commission has estimated
the number of licensed commercial
television stations to be 1,383.223 In
addition, according to Commission staff
review of the BIA Advisory Services,
LLC’s Media Access Pro Television
Database, on March 28, 2012, about 950
of an estimated 1,300 commercial
television stations (or approximately 73
percent) had revenues of $14 million or
less.224 We therefore estimate that the
majority of commercial television
broadcasters are small entities.
74. In assessing whether a business
concern qualifies as small under the
above definition, business (control)
affiliations 225 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.
75. In addition, the Commission has
estimated the number of licensed
noncommercial educational television
stations to be 394.226 These stations are
non-profit, and therefore considered to
be small entities.227 There are also 2,382
low power television stations, including
222 13
CFR 121.201, NAICS code 515120.
FCC News Release, ‘‘Broadcast Station
Totals as of March 31, 2017,’’ April 11, 2017;
https://apps.fcc.gov/edocs_public/attachmatch/
DOC-344256A1.pdf.
224 We recognize that BIA’s estimate differs
slightly from the FCC total.
225 ‘‘[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 to power to control both.’’ 13 CFR
21.103(a)(1).
226 See FCC News Release, ‘‘Broadcast Station
Totals as of March 31, 2017,’’ April 11, 2017;
https://apps.fcc.gov/edocs_public/attachmatch/
DOC-344256A1.pdf.
227 See generally 5 U.S.C. 601(4), (6).
223 See
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Class A stations.228 Given the nature of
these services, we will presume that all
LPTV licensees qualify as small entities
under the above SBA small business
size standard.
76. Radio Stations. 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.’’ 229
The SBA has established a small
business size standard for this category,
which is: Such firms having $38.5
million or less in annual receipts.230
Census data for 2012 show that 2,849
radio station firms operated during that
year. Of that number, 2,806 operated
with annual receipts of less than $25
million per year. 231 According to
Commission staff review of BIA
Advisory Services, LLC’s Media Access
Pro Radio Database, on March 28, 2012,
about 10,759 (97 percent) of 11,102
commercial radio stations had revenues
of $38.5 million or less. Therefore, most
such entities are small entities.
77. In assessing whether a business
concern qualifies as small under the
above size standard, business
affiliations must be included.232 In
addition, to be determined to be a
‘‘small business,’’ the entity may not be
dominant in its field of operation.233 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 overinclusive.
78. Cable Television and Other
Subscription Programming. This
industry comprises establishments
primarily engaged in operating studios
and facilities for the broadcasting of
programs on a subscription or fee basis.
The broadcast programming is typically
narrowcast in nature (e.g., limited
format, such as news, sports, education,
or youth-oriented). These
establishments produce programming in
their own facilities or acquire
programming from external sources. The
228 See
FCC News Release, ‘‘Broadcast Station
Totals as of March 31, 2017,’’ April 11, 2017;
https://apps.fcc.gov/edocs_public/attachmatch/
DOC-344256A1.pdf.
229 https://www.census.gov.cgi-bin/sssd/naics/
naicsrch.
230 13 CFR 121.201, NAICS code 515112.
231 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
232 ‘‘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).
233 13 CFR 121.102(b) (an SBA regulation).
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programming material is usually
delivered to a third party, such as cable
systems or direct-to-home satellite
systems, for transmission to viewers.234
The SBA has established a size standard
for this industry of $38.5 million or less.
Census data for 2012 shows that there
were 367 firms that operated that year.
Of this total, 319 operated with annual
receipts of less than $25 million.235
Thus under this size standard, most
firms offering cable and other program
distribution services can be considered
small and may be affected by rules
adopted.
79. Cable Companies and Systems.
The Commission has 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.236
Industry data indicate that there are
currently 4,413 active cable systems in
the United States.237 Of this total, all but
ten cable operators nationwide are small
under the 400,000-subscriber size
standard.238 In addition, under the
Commission’s rate regulation rules, a
‘‘small system’’ is a cable system serving
15,000 or fewer subscribers.239 Current
Commission records show 4,413 cable
systems nationwide.240 Of this total,
3,900 cable systems have fewer than
15,000 subscribers, and 700 systems
have 15,000 or more subscribers, based
on the same records.241 Thus, under this
standard as well, we estimate that most
cable systems are small entities.
80. Cable System Operators (Telecom
Act Standard). The Communications
Act 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.’’ 242
There are approximately 53 million
cable video subscribers in the United
234 https://www.census.gov.cgi-bin/sssd/naics/
naicsrch.
235 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US–51SSSZ5&prodType=Table.
236 47 CFR 76.901(e).
237 See Eighteenth Competition Report, 32 FCC
Rcd at 584, para. 39 (citing the Commission’s Cable
Operations and Licensing Systems (COALS)
database).
238 See https://www.snl.com/web/client?auth=
inherit#industry/topCableMSOs (last visited July
18, 2017).
239 47 CFR 76.901(c)
240 See footnote 2, supra.
241 August 5, 2015 report from the Media Bureau
based on its research in COALS. See www.fcc.gov/
coals.
242 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
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44341
States today.243 Accordingly, an
operator serving fewer than 524,037
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.244
Based on available data, we find that all
but nine incumbent cable operators are
small entities under this size
standard.245 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.246 Although it
seems certain that some of these cable
system operators are affiliated with
entities whose gross annual revenues
exceed $250 million, we are unable at
this time to estimate with greater
precision the number of cable system
operators that would qualify as small
cable operators under the definition in
the Communications Act.
81. Direct Broadcast Satellite (DBS)
Service. DBS Service is a nationally
distributed subscription service that
delivers video and audio programming
via satellite to a small parabolic dish
antenna at the subscriber’s location.
DBS is now included in SBA’s
economic census category ‘‘Wired
Telecommunications Carriers.’’ The
Wired Telecommunications Carriers
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 combination of
technologies. Establishments in this
industry use the wired
telecommunications network facilities
that they operate to provide a variety of
services, such as wired telephony
services, including VoIP services, wired
(cable) audio and video programming
distribution; and wired broadband
internet services. By exception,
establishments providing satellite
television distribution services using
facilities and infrastructure that they
243 See NCTA Industry Data, Cable’s Customer
Base, available at https://www.ncta.com/industrydata (last visited July 6, 2017).
244 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
245 See https://www.snl.com/web/client?auth=
inherit#industry/topCableMSOs (last visited July
18, 2018).
246 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 76.901(f).
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operate are included in this industry.247
The SBA determines that a wireline
business is small if it has fewer than
1500 employees.248 Census data for
2012 indicate that 3,117 wireline
companies were operational during that
year. Of that number, 3,083 operated
with fewer than 1,000 employees.249
Based on that data, we conclude that
most wireline firms are small under the
applicable standard. However, currently
only two entities provide DBS service,
AT&T and DISH Network. AT&T and
DISH Network each report annual
revenues that are in excess of the
threshold for a small business.
Accordingly, we conclude that DBS
service is provided only by large firms.
82. All Other Telecommunications.
‘‘All Other Telecommunications’’ is
defined as follows: This U.S. industry is
comprised of establishments that are
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. Establishments providing
Internet services or voice over Internet
protocol (VoIP) services via clientsupplied telecommunications
connections are also included in this
industry.250 The SBA has developed a
small business size standard for ‘‘All
Other Telecommunications,’’ which
consists of all such firms with gross
annual receipts of $32.5 million or
less.251 For this category, census data for
2012 show that there were 1,442 firms
that operated for the entire year. Of
these firms, a total of 1,400 had gross
annual receipts of less than $25
million.252 Thus, most ‘‘All Other
Telecommunications’’ firms potentially
affected by the rules adopted can be
considered small.
83. RespOrgs. RespOrgs, i.e.,
Responsible Organizations, are entities
chosen by toll-free subscribers to
manage and administer the appropriate
247 https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
248 NAICS code 517110; 13 CFR 121.201.
249 https://factfinder.census.gov/faces/
tableservices.jasf/pages/productview.xhtml?
pid+ECN_2012_US.51SSSZ4&prodType=table.
250 https://www.census.gov/cgi-bin/ssssd/naics/
naicsrch.
251 13 CFR 121.201; NAICS code 517919.
252 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_51SSSZ4&
prodType=table.
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records in the toll-free Service
Management System for the toll-free
subscriber.253 Although RespOrgs are
often wireline carriers, they can also
include non-carrier entities. Therefore,
in the definition herein of RespOrgs,
two categories are presented, i.e., Carrier
RespOrgs and Non-Carrier RespOrgs.
84. Carrier RespOrgs. Neither the
Commission, the U.S. Census, nor the
SBA have developed a definition for
Carrier RespOrgs. Accordingly, the
Commission believes that the closest
NAICS code-based definitional
categories for Carrier RespOrgs are
Wired Telecommunications Carriers 254
and Wireless Telecommunications
Carriers (except satellite).255
85. The U.S. Census Bureau defines
Wired Telecommunications Carriers as
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 communications
networks. Transmission facilities may
be based on a single technology or a
combination of technologies.
Establishments in this industry use the
wired telecommunications network
facilities that they operate to provide a
variety of services, such as wired
telephony services, including VoIP
services, wired (cable) audio and video
programming distribution, and wired
broadband internet services. By
exception, establishments providing
satellite television distribution services
using facilities and infrastructure that
they operate are included in this
industry.256 The SBA has developed a
small business size standard for Wired
Telecommunications Carriers, which
consists of all such companies having
1,500 or fewer employees.257 Census
data for 2012 show that there were 3,117
Wired Telecommunications Carrier
firms that operated for that entire year.
Of that number, 3,083 operated with
less than 1,000 employees.258 Based on
that data, we conclude that most Carrier
RespOrgs that operated with wirelinebased technology are small.
86. The U.S. Census Bureau defines
Wireless Telecommunications Carriers
(except satellite) as establishments
engaged in operating and maintaining
switching and transmission facilities to
provide communications via the
253 See
47 CFR 52.101(b)
CFR 121.201, NAICS code 517110
255 13 CFR 121.201, NAICS code 517210.
256 https://www.census.gov/cgi-bin/sssd/
naics.naicsrch.
257 13 CFR 120.201, NAICS code 517110.
258 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ4&prodType=table.
254 13
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airwaves, such as cellular services,
paging services, wireless internet access,
and wireless video services.259 The
appropriate size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.260
Census data for 2012 show that 967
Wireless Telecommunications Carriers
operated in that year. Of that number,
955 operated with less than 1,000
employees.261 Based on that data, we
conclude that most Carrier RespOrgs
that operated with wireless-based
technology are small.
87. Non-Carrier RespOrgs. Neither the
Commission, the Census, nor the SBA
have developed a definition of NonCarrier RespOrgs. Accordingly, the
Commission believes that the closest
NAICS code-based definitional
categories for Non-Carrier RespOrgs are
‘‘Other Services Related To
Advertising’’ 262 and ‘‘Other
Management Consulting Services.’’ 263
88. The U.S. Census defines Other
Services Related to Advertising as
comprising establishments primarily
engaged in providing advertising
services (except advertising agency
services, public relations agency
services, media buying agency services,
media representative services, display
advertising services, direct mail
advertising services, advertising
material distribution services, and
marketing consulting services.264 The
SBA has established a size standard for
this industry as annual receipts of $15
million dollars or less.265 Census data
for 2012 show that 5,804 firms operated
in this industry for the entire year. Of
that number, 5,249 operated with
annual receipts of less than $10
million.266 Based on that data we
conclude that most Non-Carrier
RespOrgs who provide TFN-related
advertising services are small.
89. The U.S. Census defines Other
Management Consulting Services as
establishments primarily engaged in
providing management consulting
services (except administrative and
general management consulting; human
resources consulting; marketing
consulting; or process, physical
distribution, and logistics consulting).
259 https://www.census.gov/cgi-bin/sssd/
naics.naicsrch.
260 13 CFR 120.201, NAICS code 517120.
261 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ4&prodType=table.
262 13 CFR 120.201, NAICS code 541890.
263 13 CFR 120.201, NAICS code 541618.
264 https://www.census.gov/cgi-bin/sssd/
naics.naicsrch.
265 13 CFR 120.201, NAICS code 541890.
266 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ4&prodType=table.
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Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations
Establishments providing
telecommunications or utilities
management consulting services are
included in this industry.267 The SBA
has established a size standard for this
industry of $15 million dollars or
less.268 Census data for 2012 show that
3,683 firms operated in this industry for
that entire year. Of that number, 3,632
operated with less than $10 million in
annual receipts. 269 Based on this data,
we conclude that most non-carrier
RespOrgs who provide TFN-related
management consulting services are
small.270
90. In addition to the data contained
in the four (see above) U.S. Census
NAICS code categories that provide
definitions of what services and
functions the Carrier and Non-Carrier
RespOrgs provide, Somos, the trade
association that monitors RespOrg
activities, compiled data showing that
as of July 1, 2016, there were 23
RespOrgs operational in Canada and 436
RespOrgs operational in the United
States, for a total of 459 RespOrgs
currently registered with Somos.271
D. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
91. This Report and Order does not
adopt any new reporting, recordkeeping,
or other compliance requirements.
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.272
93. This Report and Order does not
adopt any new reporting requirements.
Therefore, no adverse economic impact
on small entities will be sustained based
on reporting requirements.
94. In keeping with the requirements
of the Regulatory Flexibility Act, we
have considered certain alternative
means of mitigating the effects of fee
increases to a particular industry
segment. For example, the Commission
increased the de minimis threshold
from $500 to $1,000, which will impact
many small entities that pay regulatory
fees. Historically, many of these small
entities have been late in making their
fee payments to the Commission by the
due date. This increase in the de
minimis threshold to $1,000 will relieve
regulatees both financially and
administratively. This Report and Order
also adopts regulatory fees for the
smaller market AM and FM broadcast
radio stations at a lower amount than
had been proposed. Finally, regulatees
may also seek waivers or other relief on
the basis of financial hardship. See 47
CFR 1.1166.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
F. Federal Rules That May Duplicate,
Overlap, or Conflict
95. None.
92. 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,
VIII. Ordering Clauses
96. 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.
97. It is further ordered that this
Report and Order shall be effective upon
publication in the Federal Register.
98. It is further ordered that the
Commission’s Consumer &
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Report and Order, including the
Final Regulatory Flexibility Analysis, 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, Civil rights, Claims,
Communications common carriers,
Cuba, Drug abuse, Environmental
impact statements, Equal access to
justice, Equal employment opportunity,
Federal buildings and facilities,
Government employees, Income taxes,
Indemnity payments, Individuals with
disabilities, Investigations, Lawyers,
Metric system, Penalties, Radio,
Reporting and recordkeeping
requirements, Telecommunications,
Television, Wages.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Final Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 1 as
follows:
PART 1—PRACTICE AND
PROCEDURE
1. The authority citation for part 1
continues to read as follows:
■
Authority: 47 U.S.C. 151, 154(i), 154(j),
155, 157, 160, 201, 225, 227, 303, 309, 332,
1403, 1404, 1451, 1452, and 1455.
2. Section 1.1152 is revised to read as
follows:
■
§ 1.1152 Schedule of annual regulatory
fees for wireless radio services.
Exclusive use services
(per license)
Fee amount 1
1. Land Mobile (Above 470 MHz and 220 MHz Local, Base Station & SMRS) (47 CFR part 90).
(a) New, Renew/Mod (FCC 601 & 159) .......................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .........................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...............................................................................................................
220 MHz Nationwide:
(a) New, Renew/Mod (FCC 601 & 159) .......................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .........................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...............................................................................................................
267 https://www.census.gov/cgi-bin/sssd/
naics.naicsrch.
268 13 CFR 120.201, NAICS code 514618.
269 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ4&prodType=table.
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270 The four NAICS code-based categories
selected above to provide definitions for Carrier and
Non-Carrier RespOrgs were selected because as a
group they refer generically and comprehensively to
all RespOrgs. Therefore, all RespOrgs, including
those not identified specifically or individually,
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$25.00
25.00
25.00
25.00
25.00
25.00
25.00
25.00
must comply with the rules adopted in the
Regulatory Fees Report and Order associated with
this Final Regulatory Flexibility Analysis.
271 Email from Jennifer Blanchard of SOMOS
dated July 1, 2016.
272 5 U.S.C. 603(c)(1)–(c)(4).
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Exclusive use services
(per license)
Fee amount 1
2. Microwave (47 CFR Pt. 101) (Private).
(a) New, Renew/Mod (FCC 601 & 159) .......................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .........................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...............................................................................................................
3. Shared Use Services Land Mobile (Frequencies Below 470 MHz—except 220 MHz).
(a) New, Renew/Mod (FCC 601 & 159) .......................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .........................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...............................................................................................................
Rural Radio (Part 22):
(a) New, Additional Facility, Major Renew/Mod (Electronic Filing) (FCC 601 & 159) .................................................................
(b) Renewal, Minor Renew/Mod (Electronic Filing) (FCC 601 & 159) Marine Coast ..................................................................
Marine Coast (per license) (47 CFR part 80):
(a) New Renewal/Mod (FCC 601 & 159) .....................................................................................................................................
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159) .......................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...............................................................................................................
Aviation Ground:
(a) New, Renewal/Mod (FCC 601 & 159) ....................................................................................................................................
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159) .......................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Only) (FCC 601 & 159) .................................................................................................................
Marine Ship:
(a) New, Renewal/Mod (FCC 605 & 159) ....................................................................................................................................
(b) New, Renewal/Mod (Electronic Filing) (FCC 605 & 159) .......................................................................................................
(c) Renewal Only (FCC 605 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 605 & 159) ...............................................................................................................
Aviation Aircraft:
(a) New, Renew/Mod (FCC 605 & 159) .......................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159) .........................................................................................................
(c) Renewal Only (FCC 605 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 605 & 159) ...............................................................................................................
4. CMRS Cellular/Mobile Services (per unit) (FCC 159) ....................................................................................................................
5. CMRS Messaging Services (per unit) (FCC 159) ...........................................................................................................................
6. Broadband Radio Service (formerly MMDS and MDS) ..................................................................................................................
7. Local Multipoint Distribution Service ...............................................................................................................................................
25.00
25.00
25.00
25.00
10.00
10.00
10.00
10.00
10.00
10.00
40.00
40.00
40.00
40.00
20.00
20.00
20.00
20.00
15.00
15.00
15.00
15.00
10.00
10.00
10.00
10.00
2 .21
3 .08
800
800
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 10-year license term to arrive at the total amount of regulatory fees owed. Also, application fees may 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).
3. Section 1.1153 is revised to read as
follows:
■
§ 1.1153 Schedule of annual regulatory
fees and filing locations for mass media
services.
Radio [AM and FM]
(47 CFR part 73)
Fee amount
1. AM Class A:
≤25,000 population .......................................................................................................................................................................
25,001–75,000 population ............................................................................................................................................................
75,001–150,000 population ..........................................................................................................................................................
150,001–500,000 population ........................................................................................................................................................
500,001–1,200,000 population .....................................................................................................................................................
1,200,001–3,000,000 population ..................................................................................................................................................
3,000,001–6,000,000 population ..................................................................................................................................................
>6,000,000 population ..................................................................................................................................................................
2. AM Class B:
≤25,000 population .......................................................................................................................................................................
25,001–75,000 population ............................................................................................................................................................
75,001–150,000 population ..........................................................................................................................................................
150,001–500,000 population ........................................................................................................................................................
500,001–1,200,000 population .....................................................................................................................................................
1,200,001–3,000,000 population ..................................................................................................................................................
3,000,001–6,000,000 population ..................................................................................................................................................
>6,000,000 population ..................................................................................................................................................................
3. AM Class C:
≤25,000 population .......................................................................................................................................................................
25,001–75,000 population ............................................................................................................................................................
75,001–150,000 population ..........................................................................................................................................................
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$895
1,350
2,375
3,550
5,325
7,975
11,950
17,950
640
955
1,700
2,525
3,800
5,700
8,550
12,825
555
830
1,475
44345
Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Rules and Regulations
Radio [AM and FM]
(47 CFR part 73)
4.
5.
6.
7.
8.
Fee amount
150,001–500,000 population ........................................................................................................................................................
500,001–1,200,000 population .....................................................................................................................................................
1,200,001–3,000,000 population ..................................................................................................................................................
3,000,001–6,000,000 population ..................................................................................................................................................
>6,000,000 population ..................................................................................................................................................................
AM Class D:
≤25,000 population .......................................................................................................................................................................
25,001–75,000 population ............................................................................................................................................................
75,001–150,000 population ..........................................................................................................................................................
150,001–500,000 population ........................................................................................................................................................
500,001–1,200,000 population .....................................................................................................................................................
1,200,001–3,000,000 population ..................................................................................................................................................
3,000,001–6,000,000 population ..................................................................................................................................................
>6,000,000 population ..................................................................................................................................................................
AM Construction Permit
FM Classes A, B1 and C3:
≤25,000 population .......................................................................................................................................................................
25,001–75,000 population ............................................................................................................................................................
75,001–150,000 population ..........................................................................................................................................................
150,001–500,000 population ........................................................................................................................................................
500,001–1,200,000 population .....................................................................................................................................................
1,200,001–3,000,000 population ..................................................................................................................................................
3,000,001–6,000,000 population ..................................................................................................................................................
>6,000,000 population ..................................................................................................................................................................
FM Classes B, C, C0, C1 and C2:
≤25,000 population .......................................................................................................................................................................
25,001–75,000 population ............................................................................................................................................................
75,001–150,000 population ..........................................................................................................................................................
150,001–500,000 population ........................................................................................................................................................
500,001–1,200,000 population .....................................................................................................................................................
1,200,001–3,000,000 population ..................................................................................................................................................
3,000,001–6,000,000 population ..................................................................................................................................................
>6,000,000 population ..................................................................................................................................................................
FM Construction Permits .................................................................................................................................................................
2,200
3,300
4,950
7,400
11,100
610
915
1,600
2,425
3,625
5,425
8,150
12,225
555
980
1,475
2,600
3,875
5,825
8,750
13,100
19,650
1,100
1,650
2,925
4,400
6,575
9,875
14,800
22,225
980
TV (47 CFR part 73)
Digital TV (UHF and VHF Commercial Stations):
1. Markets 1 thru 10 .....................................................................................................................................................................
2. Markets 11 thru 25 ...................................................................................................................................................................
3. Markets 26 thru 50 ...................................................................................................................................................................
4. Markets 51 thru 100 .................................................................................................................................................................
5. Remaining Markets ..................................................................................................................................................................
6. Construction Permits ................................................................................................................................................................
Satellite UHF/VHF Commercial:
1. All Markets .......................................................................................................................................................................................
Low Power TV, Class A TV, TV/FM Translator, & TV/FM Booster (47 CFR part 74) .......................................................................
4. Section 1.1154 is revised to read as
follows:
■
$59,750
45,025
30,050
14,975
4,925
4,925
1,725
430
§ 1.1154 Schedule of annual regulatory
charges for common carrier services.
Radio facilities
Fee amount
1. Microwave (Domestic Public Fixed) (Electronic Filing) (FCC Form 601 & 159) .......................................................................
$25.00.
Carriers
1. Interstate Telephone Service Providers (per interstate and international end-user revenues (see FCC Form 499–A) ...........
2. Toll Free Number Fee ................................................................................................................................................................
5. Section 1.1155 is revised to read as
follows:
■
.00302.
.12 per Toll Free
Number.
§ 1.1155 Schedule of regulatory fees for
cable television services.
Fee amount
1. Cable Television Relay Service .................................................................................................................................................
2. Cable TV System, Including IPTV (per subscriber) ...................................................................................................................
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$935.
.95.
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Fee amount
3. Direct Broadcast Satellite (DBS) ................................................................................................................................................
6. Section 1.1156 is revised to read as
follows:
■
§ 1.1156 Schedule of regulatory fees for
international services.
(a) Geostationary Orbit (GSO) and
Non-Geostationary Orbit (NGSO) Space
Stations. Regulatory fees are to be paid
for GSO and NGSO Space Stations that
are licensed and operational as of
October 1, 2016. The following schedule
applies for the listed services:
Fee category
Fee amount
Space Stations (Geostationary Orbit) ............................................................................................................................................
Space Stations (Non-Geostationary Orbit) ....................................................................................................................................
Earth Stations: Transmit/Receive & Transmit only (per authorization or registration) ..................................................................
(b) International Terrestrial and
Satellite. (1) 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, noncommon 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
Fee amount
Terrestrial Common Carrier ...........................................................................................................................................................
Satellite Common Carrier
Satellite Non-Common Carrier
for all submarine cable systems
operating as of December 31 of the prior
Fee amount
<2.5 Gbps .......................................................................................................................................................................................
2.5 Gbps or greater, but less than 5 Gbps ....................................................................................................................................
5 Gbps or greater, but less than 10 Gbps .....................................................................................................................................
10 Gbps or greater, but less than 20 Gbps ...................................................................................................................................
20 Gbps or greater .........................................................................................................................................................................
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$0.03 per 64 KB
Circuit
year. The fee amount will be determined
by the Commission for each fiscal year.
Submarine Cable Systems
(capacity as of Dec. 31, 2016)
VerDate Sep<11>2014
$140,925
135,350
360
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.
International Terrestrial and Satellite
(capacity as of December 31, 2016)
(c) Submarine cable. Regulatory fees
for submarine cable systems will be
paid annually, per cable landing license,
.38 per subscriber.
E:\FR\FM\22SER1.SGM
22SER1
$8,600
17,175
34,350
68,725
137,425
]]>Agencies
[Federal Register Volume 82, Number 183 (Friday, September 22, 2017)]
[Rules and Regulations]
[Pages 44322-44346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19386]
=======================================================================
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 17-134; FCC 17-111]
Assessment and Collection of Regulatory Fees for Fiscal Year 2017
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Commission revises its Schedule of
Regulatory Fees to recover an amount of $356,710,992 that Congress has
required the Commission to collect for fiscal year 2017. Section 9 of
the Communications Act of 1934, as amended, provides for the annual
assessment and collection of regulatory fees under sections 9(b)(2) and
9(b)(3), respectively, for annual ``Mandatory Adjustments'' and
``Permitted Amendments'' to the Schedule of Regulatory Fees.
DATES: Effective September 22, 2017. To avoid penalties and interest,
regulatory fees should be paid by the due date of September 26, 2017.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, FCC 17-111, MD Docket No. 17-134, adopted on September 1,
2017 and released on September 5, 2017. The full text of this document
is available for public inspection and copying during normal business
hours in the FCC Reference Center (Room CY-A257), 445 12th Street SW.,
Washington, DC 20554, or by downloading the text from the Commission's
Web site at https://transition.fcc.gov/Daily_Releases/Daily_Business/2017/db0906/FCC-17-111A1.pdf.
I. Administrative Matters
A. Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980 (RFA),\1\
the Commission has prepared a Final Regulatory Flexibility Analysis
(FRFA) relating to this Report and Order. The FRFA is located towards
the end of this document.
---------------------------------------------------------------------------
\1\ 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).
---------------------------------------------------------------------------
B. Final Paperwork Reduction Act of 1995 Analysis
2. This document does not contain new or modified 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).
C. Congressional Review Act.
3. The Commission will send a copy of the Report and Order to
Congress and the Government Accountability Office pursuant to the
Congressional Review Act, 5 U.S.C. 801(a)(1)(A).
II. Introduction
4. The Report and Order adopts a schedule of regulatory fees to
assess and collect $356,710,992 in regulatory fees for fiscal year (FY)
2017, pursuant to section 9 of the Communications Act of 1934, as
amended (Communications Act or Act) and the Commission's FY 2017
Appropriation.\2\ The schedule of regulatory fees for FY 2017 adopted
here is listed in Table 4. These regulatory fees are due in September
2017. The FY 2017 regulatory fees are based on the proposals in the FY
2017 NPRM,\3\ considered in light of the comments received and
Commission analysis.
---------------------------------------------------------------------------
\2\ 47 U.S.C. 159. Consolidated Appropriations Act, 2017,
Division E--Financial Services and General Government Appropriations
Act, 2017, Title V--Independent Agencies, Public Law 115-31 (May 5,
2017), available at https://www.congress.gov/bill/115th-congress/house-bill/244/text.
\3\ Assessment and Collection of Regulatory Fees for Fiscal Year
2017, Notice of Proposed Rulemaking, 32 FCC Rcd 4526 (FY 2017 NPRM);
82 FR 26019, June 6, 2017.
---------------------------------------------------------------------------
III. Background
5. Congress adopted a regulatory fee schedule in 1993 \4\ and
authorized the
[[Page 44323]]
Commission to assess and collect annual regulatory fees pursuant to the
schedule, as amended by the Commission.\5\ The Commission annually
reviews the regulatory fee schedule, proposes changes to the schedule
to reflect changes in the amount of its appropriation, and proposes
increases or decreases to the schedule of regulatory fees.\6\ The
Commission makes changes to the regulatory fee schedule ``if the
Commission determines that the schedule requires amendment to comply
with the requirements'' \7\ of section 9(b)(1)(A) of the Act.\8\ The
Commission may also add, delete, or reclassify services in the fee
schedule to reflect additions, deletions, or changes in the nature of
its services ``as a consequence of Commission rulemaking proceedings or
changes in law.'' Regulatory fees must also cover the costs the
Commission incurs in regulating entities that are statutorily exempt
from paying regulatory fees,\9\ entities whose regulatory fees are
waived,\10\ and entities that provide nonregulated services. Thus, for
each fiscal year, the Commission proposes a fee schedule in the annual
Notice of Proposed Rulemaking that reflects changes in the amount
appropriated for the performance of the Commission's regulatory
activities, changes in the industries represented by the regulatory fee
payors, changes in FTE \11\ levels, and any other issues of relevance
to the proposed fee schedule.\12\ After reviewing the comments, the
Commission issues a Report and Order adopting the fee schedule for the
fiscal year and sets out the procedures for payment of fees.
---------------------------------------------------------------------------
\4\ 47 U.S.C. 159(g) (showing original fee schedule prior to
Commission amendment).
\5\ 47 U.S.C. 159.
\6\ 47 U.S.C. 159(b)(1)(B).
\7\ 47 U.S.C. 159(b)(2).
\8\ 47 U.S.C. 159(b)(1)(A).
\9\ Assessment and Collection of Regulatory Fees for Fiscal Year
2004, Report and Order, 19 FCC Rcd 11662, 11666, para 11 (FY 2004
Report and Order); 69 FR 41028, July 7, 2004. For example,
governmental and nonprofit entities are exempt from regulatory fees
under section 9(h) of the Act. 47 U.S.C. 159(h); 47 CFR 1.1162.
\10\ 47 CFR 1.1166.
\11\ One FTE, a ``Full Time Equivalent'' or ``Full Time
Employee,'' is a unit of measure equal to the work performed
annually by a full-time person (working a 40 hour workweek for a
full year) assigned to the particular job, and subject to agency
personnel staffing limitations established by the U.S. Office of
Management and Budget.
\12\ Section 9(b)(2) discusses mandatory amendments to the fee
schedule and Section 9(b)(3) discusses permissive amendments to the
fee schedule. Both mandatory and permissive amendments are not
subject to judicial review. 47 U.S.C. 159(b)(2) and (3).
---------------------------------------------------------------------------
6. The Commission calculates the fees by first determining the
number of FTEs performing the regulatory activities specified in
section 9(a), ``adjusted to take into account factors that are
reasonably related to the benefits provided to the payor of the fee by
the Commission's activities . . . .'' \13\ FTEs are categorized as
``direct'' if they are performing regulatory activities in one of the
``core'' bureaus, i.e., the Wireless Telecommunications Bureau, Media
Bureau, Wireline Competition Bureau, and part of the International
Bureau. All other FTEs are considered ``indirect.'' \14\ The total FTEs
for each fee category is calculated by counting the number of direct
FTEs in the core bureau that regulates that category, plus a
proportional allocation of indirect FTEs. Next, the Commission
allocates the total amount to be collected among the various regulatory
fee categories. This allocation is based on the number of FTEs assigned
to work in each regulatory fee category. Each regulatee within a fee
category pays its proportionate share based on an objective measure,
e.g., revenues, number of subscribers, or licenses.\15\
---------------------------------------------------------------------------
\13\ 47 U.S.C. 159(b)(1)(A). When section 9 was adopted, the
total FTEs were to be calculated based on the number of FTEs in the
Private Radio Bureau, Mass Media Bureau, and Common Carrier Bureau.
(The names of these bureaus were subsequently changed.) Satellites,
earth stations, and international bearer circuits were regulated
through the Common Carrier Bureau before the International Bureau
was created.
\14\ As of September 2016, for regulatory fee purposes,
excluding auctions-funded FTEs, the direct FTEs are Wireline Bureau
(167); Media Bureau (141); Wireless Bureau (92); and International
Bureau (24), for a total of 424 direct FTEs. The indirect FTEs, for
regulatory fee purposes, non-auctions-funded, are from the
International Bureau (81), Enforcement Bureau (237), Consumer &
Governmental Affairs Bureau (148), Public Safety & Homeland Security
Bureau (101), Chairman and Commissioners' offices (21), Office of
the Managing Director (159), Office of General Counsel (77), Office
of the Inspector General (43), Office of Communications Business
Opportunities (9), Office of Engineering and Technology (78), Office
of Legislative Affairs (11), Office of Strategic Planning and Policy
Analysis (19), Office of Workplace Diversity (3), Office of Media
Relations (16), and Office of Administrative Law Judges (4),
totaling 1,007 indirect FTEs. The total direct and indirect FTEs
number 1,431.
\15\ See Procedures for Assessment and Collection of Regulatory
Fees, Notice of Proposed Rulemaking, 27 FCC Rcd 8458, 8461-62,
paras. 8-11 (2012) (FY 2012 NPRM); 77 FR 49749, 49752-54, August 17,
2012.
---------------------------------------------------------------------------
7. As part of its annual review, the Commission seeks to improve
its regulatory fee analysis.\16\ For example, in the FY 2013 Report and
Order, the Commission updated FTE allocations to more accurately
reflect the number of FTEs working on regulation and oversight of the
regulatees in the various fee categories; \17\ reallocated some FTEs
from the International Bureau as indirect; \18\ combined the UHF and
VHF television stations into one regulatory fee category; \19\ and
added Internet Protocol Television (IPTV) to the cable television fee
category.\20\ In the FY 2014 Report and Order, the Commission adopted a
new fee subcategory for toll free numbers in the Interstate
Telecommunications Service Provider (ITSP) \21\ fee category; \22\
increased the de minimis threshold to $500 for annual regulatory fee
payors; \23\ and eliminated several categories from the regulatory fee
schedule.\24\ In the FY 2015 Report and Order, the Commission reduced
the regulatory fee for submarine cable, terrestrial, and satellite
international bearer circuits.\25\ The Commission also adopted a
regulatory fee for DBS, as a subcategory of the cable television and
IPTV fee category,\26\ and for toll-free numbers \27\ and reallocated
four International Bureau FTEs from direct to indirect.\28\ In the FY
2016 Report and Order, the Commission adjusted regulatory fees for
radio and television
[[Page 44324]]
broadcasters, based on the type and class of service and on the
population served; \29\ adopted an increase in the regulatory fee for
DBS providers within the cable television and IPTV regulatory fee
category; \30\ and adopted an across the board fee increase for the
Commission's moving expenses.\31\ In this proceeding, the Commission
continues to improve and reform the regulatory fee process.
---------------------------------------------------------------------------
\16\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, MD Docket No. 08-65, Report and Order and Further Notice
of Proposed Rulemaking, 24 FCC Rcd 6388 (2008) (FY 2008 Further
Notice); 73 FR 50285, August 26, 2008.
\17\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2013, Report and Order, 28 FCC Rcd 12351, 12354-58, paras. 10-
20 (2013) (FY 2013 Report and Order); 78 FR 52433, August 23, 2013.
The Commission now updates the FTE allocations annually. This was
recommended in a report issued by the Government Accountability
Office (GAO) in 2012. See GAO ``Federal Communications Commission
Regulatory Fee Process Needs to be Updated,'' GAO-12-686 (Aug. 2012)
(GAO Report) at 36 (available at https://www.gao.gov/products/GAO-12-686).
\18\ FY 2013 Report and Order, 28 FCC Rcd at 12355-58, paras.
13-20; 78 FR 52433.
\19\ Id., 28 FCC Rcd at 12361-62, paras. 29-31; 78 FR 52433.
\20\ Id., 28 FCC Rcd at 12362-63, paras. 32-33; 78 FR 52433.
\21\ The ITSP category includes interexchange carriers (IXCs),
incumbent local exchange carriers, toll resellers, and other IXC
service providers.
\22\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2014, Report and Order and Further Notice of Proposed
Rulemaking, 29 FCC Rcd 10767, 10777-79, paras. 25-28 (2014) (FY 2014
Report and Order); 79 FR 54190, September 11, 2014.
\23\ FY 2014 Report and Order, 29 FCC Rcd at 10774-76, paras.
18-21; 79 FR 54190.
\24\ Id., 29 FCC Rcd at 10776-77, paras. 22-24; 79 FR 54190.
\25\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2015, Report and Order and Further Notice of Proposed
Rulemaking, 30 FCC Rcd 10268, 10273, para. 12 (2015) (FY 2015 Report
and Order); 80 FR 55775, September 17, 2015.
\26\ FY 2015 Report and Order, 30 FCC Rcd at 10276-77, paras.
19-20; 80 FR 55775.
\27\ Id., 30 FCC Rcd at 10271-72, para. 9; 80 FR 55775.
\28\ Id., 30 FCC Rcd at 10278, para. 24; 80 FR 55775. The
Commission also, in the FY 2015 NPRM and Report and Order,
eliminated two fee categories. See Assessment and Collection of
Regulatory Fees for Fiscal Year 2015, Notice of Proposed Rulemaking,
Report and Order, and Order, 30 FCC Rcd 5354, 5361-62, paras. 19-22
(2015) (FY 2015 NPRM and Report and Order); 80 FR 43019, July 21,
2015.
\29\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2016, Report and Order, 31 FCC Rcd 10339, 10350-51, paras. 31-
33 (2016) (FY 2016 Report and Order); 81 FR 65926, September 26,
2016.
\30\ FY 2016 Report and Order, 31 FCC Rcd at 10347-350, paras.
25-30; 81 FR 65926.
\31\ Id., 31 FCC Rcd at 10341, para. 7; 81 FR 65926.
---------------------------------------------------------------------------
8. In our FY 2017 NPRM, we proposed to collect $356,710,992 in
regulatory fees and included a detailed, proposed fee schedule. We
received 17 comments and six reply comments.\32\
---------------------------------------------------------------------------
\32\ Commenters to the FY 2017 NPRM are listed in Table 2.
---------------------------------------------------------------------------
IV. Report and Order
9. In this FY 2017 Report and Order, we adopt a regulatory fee
schedule for FY 2017, pursuant to section 9 of the Communications Act
and the 2017 Consolidated Appropriations Act \33\ in order to collect
$356,710,992 in regulatory fees.\34\ Of this amount, we project
approximately $22.17 million (6.22 percent of the total FTE allocation)
in fees from the International Bureau regulatees; \35\ $88.69 million
(24.86 percent of the total FTE allocation) in fees from the Wireless
Telecommunications Bureau regulatees; \36\ $115.58 million (32.40
percent of the total FTE allocation) from Wireline Competition Bureau
regulatees; \37\ and $130.27 million (36.52 percent of the total FTE
allocation) from the Media Bureau regulatees.\38\ These regulatory fees
are due in September 2017. The schedule of regulatory fees for FY 2017
adopted here is listed in Table 4.
---------------------------------------------------------------------------
\33\ 47 U.S.C. 159. Consolidated Appropriations Act, 2017,
Division E--Financial Services and General Government Appropriations
Act, 2017, Title V--Independent Agencies, Public Law 115-31 (May 5,
2017), available at https://www.congress.gov/bill/115th-congress/house-bill/244/text.
\34\ Section 9 regulatory fees are mandated by Congress and
collected to recover the regulatory costs associated with the
Commission's enforcement, policy and rulemaking, user information,
and international activities. 47 U.S.C. 159(a).
\35\ Includes satellites, earth stations, and international
bearer circuits (submarine cable systems and satellite and
terrestrial bearer circuits).
\36\ Includes Commercial Mobile Radio Service (CMRS), CMRS
messaging, Broadband Radio Service/Local Multipoint Distribution
Service (BRS/LMDS), and multi-year wireless licensees.
\37\ Includes ITSP and toll free numbers.
\38\ Includes AM radio, FM radio, television (including low
power and Class A), TV/FM translators and boosters, cable television
and IPTV, DBS, and Cable Television Relaty Service (CARS) licenses.
---------------------------------------------------------------------------
A. Allocating FTEs for Regulatory Fee Purposes
10. Under section 9 of the Act, regulatory fees are to ``be derived
by determining the full-time equivalent number of employees
performing'' these activities, ``adjusted to take into account factors
that are reasonably related to the benefits provided to the payor of
the fee by the Commission's activities . . . '' \39\ As a general
matter, we reasonably expect that the work of the FTEs in the core
bureaus should remain focused on the industry segment regulated by each
of those bureaus. The work of the FTEs in the indirect bureaus and
offices benefits the Commission and the telecommunications industry and
is not specifically focused on the regulatees and licensees of a core
bureau. Given the significant implications of reassignment of FTEs in
our fee calculation, we make changes to FTE classifications only after
performing considerable analysis and finding the clearest case for
reassignment.\40\
---------------------------------------------------------------------------
\39\ 47 U.S.C. 159(b)(1)(A).
\40\ FY 2013 Report and Order, 28 FCC Rcd at 12357, para. 19; 78
FR 52433. The Commission observed that the International Bureau was
a ``singular case'' because the work of those FTEs ``primarily
benefits licensees regulated by other bureaus.'' Id., 28 FCC Rcd at
12355, para. 14; 78 FR 52433.
---------------------------------------------------------------------------
11. In the FY 2017 NPRM, we proposed to reallocate 38 FTEs in the
Wireline Competition Bureau associated with Universal Service Fund work
as indirect and to reallocate four FTEs from the Wireline Competition
Bureau that work on wireless numbering issues to the Wireless
Telecommunications Bureau due to the changes to the Universal Service
regulatory landscape that no longer affect only ITSPs and the fact that
approximately half the benefit of the work done by FTEs on numbering
issues accrue to the CMRS industry.
1. FTEs Associated With the Universal Service Fund
12. In the FY 2017 NPRM, the Commission explained that changes to
the Universal Service Fund regulatory landscape require us to reexamine
the treatment of Universal Service Fund FTEs as direct FTEs. There are
currently approximately 51 FTEs in the Wireline Competition Bureau,
including the bureau front office, working on Universal Service Fund
issues, with 13 of those FTEs focused on the High-Cost program.
Currently, there are approximately three FTEs in the Wireless
Telecommunications Bureau, including the bureau front office,
implementing the Mobility Fund, a universal service High-Cost support
mechanism devoted exclusively to mobile services.\41\ These Wireline
Competition Bureau and Wireless Telecommunications Bureau FTEs are
considered direct FTEs for regulatory fee purposes. Other FTEs
throughout the Commission working on universal service issues are
indirect FTEs, including the FTEs working on universal service issues
in the Enforcement Bureau, the Office of the Managing Director, the
Office of the Inspector General, and the Office of the General Counsel.
---------------------------------------------------------------------------
\41\ See Connect America Fund, et al., Report and Order and
Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663 (2011); 76
FR 78384, December 16, 2011.
---------------------------------------------------------------------------
13. In the FY 2017 NPRM, we proposed to reallocate the 38 FTEs in
the Wireline Competition Bureau assigned to work on the non-high-cost
programs of the Universal Service Fund as indirect for regulatory fee
purposes, for several reasons.\42\ The 38 FTE count is based on
coordination between the Office of Managing Director and Wireline
Competition Bureau staff which analyzed how many FTEs work on each of
the USF programs.\43\ In doing so, we noted that contributions to the
Universal Service Fund are required from service providers using any
technology that has end-user interstate telecommunications.\44\ As we
discussed in the FY 2017 NPRM, continuing changes in the universal
service fund regulatory landscape requires us to reexamine the
appropriateness of treating the FTEs working on universal service
issues as Wireline Competition Bureau direct FTEs.\45\ Initially,
universal service programs were focused on wireline services, but now
wireless carriers, and more recently broadband providers, are involved
in the E-Rate,\46\
[[Page 44325]]
Lifeline,\47\ and Rural Healthcare \48\ programs.
In addition, three of the universal service fund programs--E-Rate,
Lifeline, and Rural Healthcare--tie funding eligibility to the
beneficiary, i.e., a school, a library, a low-income individual or
family, or a rural healthcare provider, and not to Commission
regulatees.\49\ Wireless carriers now serve a substantial, if not
majority, of Lifeline subscribers.\50\ Also, satellite operators, Wi-Fi
network installers, and fiber builders may all receive funding through
the E-Rate and Rural Healthcare universal service programs.\51\
Similarly, multichannel video programming distributors (MVPDs), who
also provide supported services, receive universal service funding
through participation in both the E-rate and Rural Healthcare programs
because they provide telecommunications and Internet access services
that are eligible for support in those programs.\52\ And given that the
applicants in these programs are not even regulatees--instead, they are
the schools and libraries and healthcare providers--the bulk of the
Commission's oversight of these programs (i.e., the costs incurred that
create a need for regulatory fees) are not generated by regulatees.
Indeed, seven of the ten E-Rate forms that make up the bulk of the
Commission's oversight of the program are filed by schools and
libraries, not service providers. Similarly, seven of the nine rural
healthcare program forms are filed by healthcare providers, not service
providers. In other words, ITSPs are not the sole or even majority
contributors or beneficiaries of these three programs. Reallocating
these Wireline Competition Bureau FTEs as indirect FTEs would be more
consistent with how FTEs working on universal service issues are
treated elsewhere in the Commission, e.g., similar to the 10 FTEs
working on USF matters in the Enforcement Bureau, the 5 FTEs in the
Office of the Managing Director, the 10 FTEs in the Office of the
Inspector General, and the 5 FTEs in the Office of the General
Counsel.\53\
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\42\ FY 2017 NPRM, 32 FCC Rcd at 4529-4530, para. 10; 82 FR
26019.
\43\ The FCC Time and Attendance system does not provide a
breakdown of USF work by technology or bureau.
\44\ 47 CFR 54.706(a).
\45\ FY 2017 NPRM, 32 FCC Rcd at 4529, para. 9; 82 FR 26019.
\46\ ``The schools and libraries universal service support
program, commonly known as the E-rate program, helps schools and
libraries to obtain affordable broadband . . . . Eligible schools,
school districts and libraries may apply individually or as part of
a consortium [for] . . . category one services to a school or
library (telecommunications, telecommunications services and
Internet access), and category two services that deliver Internet
access within schools and libraries (internal connections, basic
maintenance of internal connections, and managed internal broadband
services).'' See FCC Web site, ``E-Rate--Schools & Libraries USF
Program,'' available at https://www.fcc.gov/general/e-rate-schools-libraries-usf-program#block-menu-block-4 (last visited July 17,
2017).
\47\ ``Since 1985, the Lifeline program has provided a discount
on phone service for qualifying low-income consumers . . . . The
Lifeline program is available to eligible low-income consumers in
every state, territory, commonwealth, and on Tribal lands . . . . In
. . . 2016 . . . the Commission included broadband as a support
service in the Lifeline program.'' See FCC Web site, ``Lifeline
Program for Low-Income Consumers,'' available at https://www.fcc.gov/general/lifeline-program-low-income-consumers#block-menu-block-4 (last visited July 17, 2017).
\48\ ``The Rural Health Care Program, which includes the new
Healthcare Connect Fund, provides funding to eligible health care
providers (HCPs) for telecommunications and broadband services
necessary for the provision of health care. The goal of the program
is to improve the quality of health care available to patients in
rural communities by ensuring that eligible HCPs have access to
telecommunications and broadband services.'' See FCC Web site,
``Rural Health Care Program,'' available at https://www.fcc.gov/general/rural-health-care-program#block-menu-block-4 (last visited
July 17, 2017).
\49\ FY 2017 NPRM, 32 FCC Rcd at 4530, para. 10; 82 FR 26019.
\50\ Id.
\51\ Id.
\52\ See USAC Web site, 2017 E-Rate Eligible Services List,
available at https://www.usac.org/sl/applicants/beforeyoubegin/eligible-services-list.aspx (last visited July 28, 2017); USAC Web
site Rural Healthcare Eligible Services, available at https://www.usac.org/rhc/telecommunications/health-care-providers/step01/eligible-services.aspx (last visited July 28, 2017). See also
Universal Service Administrative Company Third Quarter 2017 FCC
Filings (E-rate and Rural Healthcare), available at https://www.usac.org/about/tools/fcc/filings/2017/q3.aspx (last visited July
28, 2017).
\53\ Id.
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14. ITTA and Frontier support the proposal in the FY 2017 NPRM to
reallocate 38 Wireline Competition Bureau FTEs as indirect, and CTIA
argues that if the Commission reclassifies any of these FTEs, they
should be reallocated as indirect.\54\ CenturyLink also agrees with
this proposal and observes that the concern that the reallocation would
impose a burden on broadcasters which do not participate in the
universal service program is misplaced ``as there is no completely pure
way to precisely allocate every Commission FTE.'' \55\ After
consideration of the record on this issue and for the reasons discussed
in the FY 2017 NPRM, i.e., that ITSPs are no longer the sole
contributors or beneficiaries of the E-Rate, Lifeline, and Rural
Healthcare programs and allocating these Wireline Competition Bureau
FTEs as indirect FTEs would be more consistent with how FTEs working on
universal service issues are treated elsewhere in the Commission, we
adopt the proposal to reallocate 38 FTEs in the Wireline Competition
Bureau assigned to work on the non-high-cost programs of the Universal
Service Fund as indirect. The regulatory fee rates set forth in
Appendix C reflect this reallocation of FTEs for regulatory fee
purposes.
---------------------------------------------------------------------------
\54\ ITTA Comments at 5; Frontier Comments at 3; CTIA Reply
Comments at 4-5.
\55\ CenturyLink Comments at 4.
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15. We disagree with SIA's argument that such a reallocation of
FTEs from direct to indirect is ``premature'' because satellite
operators do not yet benefit from the contributions of the FTEs working
on universal service fund issues.\56\ The FTEs working on these
universal service issues have already devoted substantial time to
making sure that satellite operators are eligible to participate in
these programs, such as by becoming ETCs or being eligible for funding
under the Rural Healthcare program or E-Rate. Permitting satellite
operators into the USF programs uses FTE resources at the beginning of
a satellite operators' participation. And some satellite providers have
begun to take advantage of that eligibility in, for example, the Rural
Healthcare program. Thus, these FTEs are both overseeing satellite
operators and benefiting satellite operators, making reallocation
appropriate.
---------------------------------------------------------------------------
\56\ SIA Comments at 2-3; SIA Comments at 2 (observing that no
satellite operator has yet been designated an eligible
telecommunications carrier, or ETC, which is required for Lifeline
funding).
---------------------------------------------------------------------------
16. ITTA and Frontier suggest that we also reallocate to the
Wireless Telecommunications Bureau and/or Media Bureau direct FTEs
working on universal service high cost issues.\57\ Frontier argues that
we should reallocate FTEs working on High-Cost Fund issues as indirect
FTEs because all universal service programs, including the High-Cost
Fund, ``benefit the public and all members of the Internet ecosystem,
not specifically or uniquely wireline companies.'' \58\ CTIA opposes
the proposal to reallocate FTEs working on High-Cost issues, and
observes that ITTA and Frontier have failed to show a clear case for
reclassification of the Wireline Competition Bureau FTEs.\59\ We agree
with CTIA that the case for reallocation has not been made at this
time.
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\57\ ITTA Comments at 6. CenturyLink also supports allocating
four Wireline Competition Bureau FTEs as Wireless Telecommunications
Bureau FTEs for regulatory fee purposes because ``wireless carriers
now serve over 90% of Lifeline subscribers.'' CenturyLink Reply
Comments at 4.
\58\ Frontier Comments at 3-4. CenturyLink agrees with this
proposal. See CenturyLink Reply Comments at 3-4.
\59\ CTIA Reply Comments at 6.
---------------------------------------------------------------------------
17. Several parties also ask that we go farther. For example, ITTA
argues that the Wireline Competition Bureau FTEs are ``no longer
focused exclusively on ITSPs'' \60\ and the Commission ``must make
adjustments to ensure that its regulatory fees reflect its actual costs
by industry sector.'' \61\ Similarly, ITTA, Frontier, and CenturyLink
also argue that we should combine CMRS into the ITSP category.\62\ We
do not believe the case has been made for such large changes at this
time, because (among
[[Page 44326]]
other things) advocates of such changes have not fully accounted for
the substantial differences in regulatory oversight between different
groups of regulatees nor the fact that allocating regulatory fees is
not and cannot be an exact science. On the last point, it would be nigh
impossible to determine the precise costs attributable to FTEs and the
precise benefits flowing from Commission regulation to any one
regulatee, let alone a particular cross-section of regulatees or even
an entire industry--not to mention the complications associated with
regulatees statutorily exempt from paying regulatory fees (such as
governmental licensees) and with beneficiaries (such as schools and
libraries) that are not regulatees, all of whom nonetheless create
costs that must be recovered. As such the Commission has long taken an
incrementalist approach, requiring substantial and specific evidence
about regulatory burdens and benefits before making changes to the
allocation of fees. And those seeking to change our allocations even
further have not yet made the case for doing so.
---------------------------------------------------------------------------
\60\ ITTA Comments at 2.
\61\ ITTA Comments at 3 (emphasis added).
\62\ See ITTA Comments at 10-11; Frontier Comments at 6-7;
CenturyLink Reply Comments at 4-5.
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18. After reviewing the record, we conclude that our proposal in
the FY 2017 NPRM to reallocate 38 FTEs in the Wireline Competition
Bureau assigned to work on the non-high cost programs of the Universal
Service Fund as indirect for regulatory fee purposes is warranted and
consistent with section 9 of the Act. We therefore adopt the proposal
in the FY 2017 NPRM. The regulatory fee rates set forth in Table 4
reflect this reallocation of FTEs.
2. FTEs Associated With Numbering Issues
19. In the FY 2017 NPRM, we estimated that seven to eight FTEs in
the Wireline Competition Bureau work on numbering issues.\63\ We
proposed to reallocate for regulatory fee purposes four of these direct
FTEs from the Wireline Competition Bureau to the Wireless
Telecommunications Bureau ``to take into account factors that are
reasonably related to the benefits provided to the payor of the fee by
the Commission's activities . . . .'' \64\ Specifically, we estimated
approximately half of the benefit of the work of these FTEs accrue to
Wireless Telecommunications Bureau regulatees.\65\ Commenters agree
with our proposal to reallocate four of the Wireline Competition Bureau
FTEs that work on numbering issues to the Wireless Telecommunications
Bureau as direct FTEs for regulatory fee purposes.\66\
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\63\ FY 2017 NPRM, 32 FCC Rcd at 4530, para. 13; 82 FR 26019.
\64\ 47 U.S.C. 159(b)(1)(A).
\65\ See Industry Analysis and Technology Division, Wireline
Competition Bureau, FCC, Voice Telephone Services: Status as of
December 31, 2015, at 2 Figure 1 (2016).
\66\ ITTA Comments at 9-10; CenturyLink Comments at 5 & Reply
Comments at 5; Frontier Comments at 5-6.
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20. After reviewing the record, we conclude that reallocating four
FTEs in the Wireline Competition Bureau assigned to work on numbering
issues to the Wireless Telecommunications Bureau for regulatory fee
purposes is warranted and consistent with section 9 of the Act.
Reallocating four direct FTEs from the Wireline Competition Bureau to
the Wireless Telecommunications Bureau will ``take into account factors
that are reasonably related to the benefits provided to the payor of
the fee by the Commission's activities'' \67\ because approximately
half of the benefit of the work of these FTEs accrue to Wireless
Telecommunications Bureau regulatees.\68\ We therefore adopt our
proposal to reallocate for regulatory fee purposes four direct FTEs
from the Wireline Competition Bureau to the Wireless Telecommunications
Bureau. The regulatory fee rates set forth in Appendix C reflect this
reallocation of FTEs.
---------------------------------------------------------------------------
\67\ 47 U.S.C. 159(b)(1)(A).
\68\ See Industry Analysis and Technology Division, Wireline
Competition Bureau, FCC, Voice Telephone Services: Status as of
December 31, 2015, at 2 Figure 1 (2016).
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B. Direct Broadcast Satellite (DBS) Regulatory Fees
21. DBS service is a nationally distributed subscription service
that delivers video and audio programming via satellite to a small
parabolic dish antenna at the subscriber's location. The two DBS
providers, AT&T \69\ and DISH Network, are MVPDs.\70\ Following the
2012 GAO Report, in which the GAO observed that an evaluation of Media
Bureau FTEs was long overdue,\71\ the Commission concluded that the
Media Bureau FTEs regulate the DBS industry together with the other
MVPDs.\72\ Subsequently, the Commission adopted a regulatory fee for
DBS as a subcategory in the cable television and IPTV category, of 12
cents per year per subscriber.\73\ This regulatory fee subcategory was
based on Media Bureau FTE activity involving regulation and oversight
of all MVPDs, which included DBS providers.\74\
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\69\ AT&T and DIRECTV merged in 2015. See Applications of AT&T
and DIRECTV for Consent to Assign or Transfer Control of Licenses
and Authorizations, Memorandum Opinion and Order, 30 FCC Rcd 9131
(2015).
\70\ MVPD is defined in section 602(13) of the Act, 47 U.S.C.
522(13). DBS subscribers were 33.2 percent of all MVPD subscribers
at the end of 2015. See Annual Assessment of the Status of
Competition in the Market for the Delivery of Video Programming,
Eighteenth Report, 32 FCC Rcd 568, 575, para. 19 (2017) (Eighteenth
Competition Report) (citing SNL Kagan, U.S. Multichannel Industry
Benchmarks).
\71\ GAO Report at 17-20.
\72\ FY 2015 NPRM, 30 FCC Rcd at 5368, para. 32; 80 FR 37206.
\73\ FY 2015 Report and Order, 30 FCC Rcd at 10276-77, paras.
19-20; 80 FR 55775.
\74\ FY 2015 NPRM, 30 FCC Rcd at 5367-68, para. 31; 80 FR 37206.
---------------------------------------------------------------------------
22. As the Commission discussed in the FY 2015 NPRM, the DBS
providers were established as large MVPDs by 2015 and significant Media
Bureau FTE resources were used in regulation and oversight of all
MVPDs, including DBS.\75\ The Commission concluded there was no
reasonable basis to continue to exclude DBS providers from sharing in
the cost of MVPD oversight and regulation with cable television and
IPTV. In lieu of directly including DBS providers in the cable
television/IPTV category at the same regulatory fee rate, the
Commission elected to phase in the new Media Bureau-based regulatory
fee for DBS, starting at 12 cents per subscriber, per year. Since then,
the Commission has increased the DBS regulatory fee each year, to bring
it closer to the per-subscriber rate paid by cable television and IPTV.
In the FY 2016 regulatory fee proceeding, the Commission increased the
regulatory fee for DBS providers to 24 cents, plus an across-the-board
increase of three cents for the Commission's moving expenses, for a
total of 27 cents per subscriber, per year.\76\ In the FY 2017 NPRM,
the Commission noted that the Media Bureau resources focused on MVPD
proceedings (including DBS) supported continuing to bring the DBS rate
closer to the cable television/IPTV per subscriber rate.\77\ At that
time, we proposed a regulatory fee rate of 36 cents per subscriber per
year, plus two cents due to the increase in the Commission's budget for
moving expenses, for a total of 38 cents per subscriber per year for FY
2017.\78\ As we discuss below, we are adopting the proposed rate of 38
cents per subscriber, per year in this Report and Order, in our effort
to bring the DBS rate closer to the cable television/IPTV per
subscriber rate.
---------------------------------------------------------------------------
\75\ Id., 30 FCC Rcd at 5368, para. 32; 80 FR 37206.
\76\ FY 2016 Report and Order, 31 FCC Rcd at 10348-49, para. 26;
81 FR 65926.
\77\ FY 2017 NPRM, 32 FCC Rcd at 4531-32, paras. 15-17; 82 FR
26019.
\78\ FY 2017 NPRM, 32 FCC Rcd at 4532, para. 17; 82 FR 26019.
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23. We agree with the commenters representing the cable television
[[Page 44327]]
industry that the Media Bureau resources utilized by the DBS providers
are similar to those used by the cable television and IPTV
industry,\79\ and for this reason we have been phasing in the
regulatory fee for DBS providers each year. Commenters representing the
cable television industry observe that despite the Commission's prior
commitment to ensuring ``an appropriate level of regulatory parity with
cable television and IPTV'' the proposed rate is far below the 96 cents
proposed rate for cable television and IPTV.\80\ These commenters argue
that there is no justification for this disparity, due to the fact that
DBS operators impose regulatory costs and receive benefits from the
Media Bureau that affect all MVPDs; \81\ that the proposed fees impose
competitive and technological disparities, favoring DBS over cable
television and IPTV; \82\ and that there is no evidence in the record
to support the disparity in fees.\83\ The Media Bureau FTEs regulate
the DBS industry together with the other MVPDs and the burden that DBS
imposes on Media Bureau FTEs is roughly the same. For example, since
October 1, 2016, the Media Bureau has opened 17 proceedings that affect
MVPDs; seven of those proceedings are focused on cable operators, six
are focused on DBS, and four cover all MVPDs (with three of those also
covering other media services like broadcasters). Thus, these
regulatees--MVPDs--are a group that includes DBS. In order to continue
to bring the DBS fee closer to the cable television/IPTV fee, we are
adopting the proposed rate of 38 cents per subscriber, which still
remains substantially below the cable television/IPTV fee we adopt
today.
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\79\ For example, as ACA observes, DBS providers have been
actively involved in the Media Bureau's proceeding implementing the
Satellite Television Extension and Localism Act Reauthorization Act
of 2014 (STELAR) and in the market modification proceedings that
STELAR directed the Commission to expand to satellite DBS carriage.
The STELA Reauthorization Act of 2014 (STELAR), Pub. L. 113-200, 128
Stat. 2059 (2014); Amendment to the Commission's Rules Concerning
Market Modification, Implementation of Section 102 of the STELA
Reauthorization Act of 2014, Report and Order, 30 FCC Rcd 10406 (80
FR 59635, October 2, 2015) (adopting satellite television market
modification rules). See, e.g., Gray Television Licensee, LLC,
Petition for Modification of the Satellite Televisions Market for
WSAW-TV, Wausau, Wisconsin, MB Docket No. 16-293, DirecTV, LLC
Response to Petition for Special Relief (filed Oct. 6, 2016);
Amendment to the Commission's Rules Concerning Market Modification,
Implementation of Section 102 of the STELA Reauthorization Act of
2014, MB Docket No. 15-71, DISH Network LLC Market Modification Pre-
Filing Coordination Letter for Monongalia County, West Virginia
(filed May 23, 2017).
AT&T and DISH have also been involved in the Commission's ATSC
3.0 rulemaking. See, e.g., Authorizing Permissive Use of the ``Next
Generation'' Broadcast Television Standard, GN Docket No. 16-142,
Comments of DISH Network LLC (filed May 9, 2017); Reply Comments of
AT&T (filed June 8, 2017). AT&T and DISH Network were also active
participants in the Media Bureau's 2016 public notice proceeding.
See, e.g., Media Bureau Seeks Comment on Joint Petition for
Rulemaking of America's Public Television Stations, the AWARN
Alliance, the Consumer Technology Association, and the National
Association of Broadcasters Seeking to Authorize Permissive Use of
the ``Next Generation TV'' Broadcast Television Standard, GN Docket
No. 16-142, Comments of DISH Network, LLC (filed May 26, 2016);
Comments of AT&T (filed May 26, 2016).
\80\ ACA Comments at 2 (quoting FY 2017 NPRM, 32 FCC Rcd at
4531, para. 15; 82 FR 26019); NCTA Comments at 3.
\81\ ACA Comments at 3-6; NCTA Comments at 3-5.
\82\ NCTA Comments at 5-7.
\83\ NCTA Comments at 7-8.
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24. We reject the argument raised by DISH and AT&T, the two DBS
providers, who contend that a fee increase would ``harm DBS
customers.'' \84\ We do not accept the DISH and AT&T unsupported
contention that a regulatory fee increase of several cents per
subscriber, per month would ``harm'' their customers, as such an
increase is a negligible fraction of a monthly bill.\85\
---------------------------------------------------------------------------
\84\ DISH and AT&T Comments at 3.
\85\ The current least expensive promotional rate for new DBS
subscribers is approximately $50 per month for 12 months (not
including taxes or leasing charges). Even if the regulatory fee were
72 cents per subscriber per year, approximately what it would be at
parity with cable television/IPTV, it would equal 0.12% of the
lowest introductory monthly fee for DBS ($600 x .0012 = $0.72). See
https://www.directv.com/DTVAPP/pepod/configure.jsp#package-section
(last visited June 29, 2017); https://www.dish.com/programming/packages/ (last visited June 29, 2017). ACA observes that DISH's
reported average revenue per unit was $86.79 per month and AT&T's
was $118.00 per month. ACA Reply Comments at 2-3.
---------------------------------------------------------------------------
25. AT&T and DISH also argue that several recent proceedings
involving MVPDs do not justify an increase in regulatory fees.\86\ We
disagree. The examples of recent proceedings involving MVPDs illustrate
that Media Bureau FTEs work on significant MVPD issues that include
DBS. DBS, cable television, and IPTV all receive oversight and
regulation as a result of the work of Media Bureau FTEs on MVPD issues.
This regulatory fee is not based on specific recent proceedings, but
that a significant number of Media Bureau FTEs work on MVPD issues that
include DBS.\87\ We listed examples of several recent proceedings to
illustrate that the Media Bureau is involved in numerous MVPD
issues.\88\ The fee increase we adopt today is not based on particular
Media Bureau proceedings, but is an effort to bring the regulatory fee
closer to the cable television/IPTV per subscriber fee.
---------------------------------------------------------------------------
\86\ DISH and AT&T Comments at 4-5; AT&T Reply Comments at 6-7.
\87\ FY 2015 Report and Order, 30 FCC Rcd at 5369, para. 33; 80
FR 43019.
\88\ See, e.g., Video Description: Implementation of the Twenty-
First Century Communications and Video Accessibility Act of 2010,
Notice of Proposed Rulemaking, 31 FCC Rcd 2463 (81 FR 33642, May 27,
2016); Expanding Consumers' Video Navigation Choices, Commercial
Availability of Navigation Devices, Notice of Proposed Rulemaking
and Memorandum Opinion and Order, 31 FCC Rcd 1544 (81 FR 14033,
March 16, 2016); Promoting the Availability of Diverse and
Independent Sources of Video Programming, Notice of Inquiry, 31 FCC
Rcd 1610 (2016); Expansion of Online Public File Obligations to
Cable and Satellite TV Operators and Broadcast and Satellite Radio
Licensees, Report and Order, 31 FCC Rcd 526 (2016); Amendment to the
Commission's Rules Concerning Market Modification, Implementation of
Section 102 of the STELA Reauthorization Act of 2014, Report and
Order, 30 FCC Rcd 10406 (2015).
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26. AT&T and DISH contend that there is no evidence that DBS
providers ``usurped the work of such a significant amount of Media
Bureau FTEs sufficient to justify this increase.'' \89\ The DBS
commenters are misunderstanding the basis for including DBS in the
cable television/IPTV regulatory fee.\90\ The Commission has never said
that the DBS industry ``usurped the work'' of the Media Bureau staff.
The regulatory fee is based on the fact that Media Bureau staff work on
significant issues involving MVPDs, including DBS. The DBS regulatory
fee is based on the Media Bureau's regulation and oversight of the MVPD
industry (including DBS), not on a particular number of FTEs focused
solely on DBS. The Commission has specifically rejected the argument
that section 9 of the Act requires us to ``show that DBS and cable
occupy a comparable number of FTEs.'' \91\
---------------------------------------------------------------------------
\89\ DISH and AT&T Comments at 5-6. We also do not agree with
AT&T's argument that we have ignored the other regulatory fees paid
by the DBS providers. AT&T Reply Comments at 7. The regulatory fee
based on the Media Bureau FTEs is not related to the regulatory fee
based on International Bureau FTEs. While there is no other industry
in the same situation as DBS, we note that the cable television
industry pays regulatory fees for CARs licenses.
\90\ ACA observes, ``the DBS providers misconceive the nature of
the Commission's fee setting exercise, as it is not required to
calculate fee levels with scientific precision.'' See ACA Reply
Comments at 6.
\91\ FY 2015 Report and Order, 30 FCC Rcd at 5369, para. 33; 80
FR 43019.
---------------------------------------------------------------------------
27. Finally, AT&T and DISH contend that there is no legal basis to
charge DBS providers the same regulatory fees as cable television and
IPTV operators.\92\ We disagree. We recognize that DBS is not identical
to cable television and IPTV. Services that are not technologically
identical nevertheless warrant placement in the same regulatory fee
category, e.g., ITSP includes a range of carriers that may not be
regulated identically but must pay
[[Page 44328]]
fees on the same basis.\93\ When interconnected Voice over Internet
Protocol (VoIP) providers were added to the ITSP category in a
permitted amendment the Commission observed that ``the costs and
benefits associated with our regulation of interconnected VoIP
providers are not identical as those associated with regulating
interstate telecommunications service and CMRS.'' \94\ Indeed, IPTV is
not regulated in all the same ways as cable television, and yet the
Commission requires them to pay fees on the same basis.\95\ We
recognize that DBS is not identical to cable, but the Media Bureau FTEs
work on MVPD issues that include DBS. Although DBS is not identical to
cable television and IPTV, the services all receive oversight and
regulation as a result of the work of Media Bureau FTEs on MVPD issues,
and the burden imposed on the Commission is similar.
---------------------------------------------------------------------------
\92\ DISH and AT&T Comments at 7-8.
\93\ ITSP, regulated by the Wireline Competition Bureau,
includes interexchange carriers (IXCs), incumbent local exchange
carriers (LECs), toll resellers, Voice over Internet Providers
(VoIP), and other service providers, all of which involve different
degrees of regulatory oversight.
\94\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2007, Report and Order and Further Notice of Proposed
Rulemaking, 22 FCC Rcd 15712, 15719, para. 19 (2007) (FY 2007 Report
and Order); 72 FR 45908, August 16, 2007.
\95\ FY 2013 Report and Order, 28 FCC Rcd at 12362, para. 32
(``IPTV providers should be subject to the same regulatory fee as
cable providers.''); 78 FR 52433.
---------------------------------------------------------------------------
28. After considering the comments filed in this proceeding, we
conclude that moving the DBS rate is supported by the data and
analysis, and therefore adopt a regulatory fee rate of 38 cents, per
subscriber, per year for FY 2017.
C. Radio Broadcaster Regulatory Fees
29. In the FY 2017 NPRM, the Commission proposed to revise the
table for AM and FM broadcasters.\96\ The proposed table had revised
ratios so that the difference between each tier would be proportional.
We also sought comment on whether the regulatory fees should be reduced
further for the AM and FM broadcasters in the two lowest tiers.
---------------------------------------------------------------------------
\96\ FY 2017 NPRM, 32 FCC Rcd at 4533, para. 19; 82 FR 26019.
---------------------------------------------------------------------------
30. We received two comments on this issue. CRC, an AM station
licensee, contends that the proposed fees for AM stations are too
high.\97\ CRC observes that small AM stations must compete against FM
stations and other media and they generate significantly less revenue
than FM stations.\98\ CRC argues that the economic disparities between
AM and FM facilities should be reflected in the regulatory fee
schedules, particularly in the top tiers where the disparity in
revenues is much greater than in the smaller markets.\99\ Arso contends
that the FY 2017 NPRM does not go far enough in alleviating the
hardship imposed on small broadcasters and urges the Commission to
adopt a fast track waiver process for stations in economically
depressed areas, such as Puerto Rico.\100\
---------------------------------------------------------------------------
\97\ CRC Comments at 1.
\98\ CRC Comments at 1.
\99\ CRC Comments at 2.
\100\ Arso Comments at 1-2.
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31. We agree with the commenters that small independent
broadcasters face hardship today. As the Commission explained in the FY
2016 Report and Order, ``[e]xtending some relief to these small radio
broadcasters may facilitate their continued ability to stay in business
and serve their small and rural communities.'' \101\ After reviewing
the record, and due to the economic hardship faced by many small rural
independent radio stations, we are adopting a revised version of the
proposed table in the FY 2017 NPRM and reducing the regulatory fees in
the two lowest population tiers for AM and FM broadcasters from the
amounts proposed. In FY 2018, we will again review the status of these
small radio broadcast stations to see if further relief is warranted.
Below is the table we adopt today:
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\101\ FY 2016 Report and Order, 31 FCC Rcd at 10351, para. 33;
81 FR 65926.
Table 1--FY 2017 Radio Station Regulatory Fees
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FY 2017 Radio Station Regulatory Fees
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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
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<=25,000................................................ $895 $640 $555 $610 $980 $1,100
25,001-75,000........................................... 1,350 955 830 915 1,475 1,650
75,001-150,000.......................................... 2,375 1,700 1,475 1,600 2,600 2,925
150,001-500,000......................................... 3,550 2,525 2,200 2,425 3,875 4,400
500,001-1,200,000....................................... 5,325 3,800 3,300 3,625 5,825 6,575
1,200,001-3,000,00...................................... 7,975 5,700 4,950 5,425 8,750 9,875
3,000,001-6,000,00...................................... 11,950 8,550 7,400 8,150 13,100 14,800
>6,000,000.............................................. 17,950 12,825 11,100 12,225 19,650 22,225
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D. Broadcast Television Satellite
32. Broadcast television satellite stations pay a lower regulatory
fee than standalone full service broadcast television stations, and
some of these stations are designated as such pursuant to note 5 to
Sec. 73.3555 of the Commission's rules.\102\ For purposes of
regulatory fees, we historically have identified as satellite stations
those so listed in the Media Bureau's Consolidated Data Base System
(CDBS), the Television and Cable Factbook, or BIA/Kelsey MEDIA Access
Pro.\103\ In the FY 2017 NPRM, the Commission sought comment on basing
the categorization of television satellite stations for regulatory fee
payments on authorization under note 5 of Sec. 73.3555 of the
Commission's rules, and noted that the Television and Cable Factbook
may identify some stations as satellite stations that are not listed in
the Media Bureau's records.\104\ We received limited comments on the
issue and do not have adequate support to change the methodology for
determining which stations are satellites at this time. We recognize
that regulatees rely on consistency of treatment. Therefore, for FY
2017 regulatory fees we treat broadcast television satellite stations
as satellite stations that are listed as such in CDBS, the 2017
Television and Cable Factbook, or BIA/Kelsey MEDIA Access Pro, or paid
regulatory fees as a satellite
[[Page 44329]]
station in FY 2016.\105\ In the future, we intend to continue examining
the appropriate methodology for categorizing when a station should only
be assessed regulatory fees at the satellite station level. In doing
so, as with other fee reforms, the Commission will work to ensure that
any proposed changes to our fee structure are equitable, administrable,
and sustainable.\106\
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\102\ FY 2017 NPRM, 31 FCC Rcd at 4534, para. 20; 82 FR 26019.
\103\ Id., FY 2017 NPRM, 31 FCC Rcd at 4535, para. 21; 82 FR
26019.
\104\ Id., FY 2017 NPRM, 31 FCC Rcd at 4535, para. 20; 82 FR
26019.
\105\ For purposes of determining whether a licensee qualifies
as a satellite station for regulatory fee purposes, it must be so
characterized in one of these sources as of the date of the Report
and Order.
\106\ See FY 2013 NPRM, 28 FCC Rcd at 7798-7807, paras. 17-40;
78 FR 34612.
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E. Submarine Cable Regulatory Fees
33. The Coalition, a group of submarine cable operators, objects to
the proposed FY 2017 regulatory fees for the submarine cable industry,
observing that the total amount the Commission is collecting for FY
2017 ($356,710,992) is less than the amount collected for FY 2016
($384,012,497, of which $44,168,497 was to offset facilities reduction
costs), yet the regulatory fee for the highest tier submarine cable
system was $133,200 for FY 2016 and the rate proposed for FY 2017, for
the highest tier, is $135,700.\107\ The Coalition states that the FY
2017 NPRM does not adequately justify the proposed increase in fees for
submarine cable systems.\108\ The Coalition argues that the FY 2016
rate included a one-time facilities reduction charge and the FY 2017
rate should be less than the FY 2016 rate because the number of payment
units are the same.\109\ The Coalition contends that the Commission is
subsidizing unrelated activities to the detriment of the submarine
cable operators.\110\
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\107\ Coalition Comments at 3.
\108\ Coalition Comments at 3.
\109\ Coalition Comments at 5-6.
\110\ Coalition Comments at 8.
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34. We disagree with the Coalition's argument. The increase in
regulatory fee rates for the International Bureau regulatees is due to
the reallocation of 38 Wireline Competition Bureau direct FTEs as
indirect in FY 2017, as discussed above. Although the amount collected
overall is less in FY 2017 than in FY 2016, the allocation percentage
of regulatory fees for the International Bureau increased from 5.6
percent in FY 2016 \111\ to 6.22 percent for FY 2017,\112\ due to the
increase in indirect FTEs. We also note that the regulatory fees paid
by the submarine cable operators cover, in addition to the services
that the International Bureau provides to submarine cable operators,
the services provided to common carriers using submarine cable
circuits.\113\ The International Bureau provides many services on
behalf of common carriers using submarine cable circuits, such as
benchmarks enforcement,\114\ protection from anticompetitive actions by
foreign carriers, section 310(b) foreign ownership rulings,
international section 214 authorizations, and representation of U.S.
interests at bilateral and multilateral negotiations and international
organizations.\115\ After reviewing the record, including the comments
from the submarine cable industry, we are adopting the fee proposed in
the FY 2017 NPRM for submarine cable systems.
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\111\ FY 2016 Report and Order, 31 FCC Rcd at 10347-350, para.
6; 81 FR 65926.
\112\ FY 2017 NPRM, 32 FCC Rcd at 4529, para. 8; 82 FR 26019.
\113\ See FY 2015 Report and Order, 30 FCC Rcd 10273, para. 12;
80 FR 55775.
\114\ See, e.g., International Settlement Rates, IB Docket No.
96-261, Report and Order, 12 FCC Rcd 19806 (62 FR 45758, August 29,
1997), Report and Order on Reconsideration and Order Lifting Stay,
14 FCC Rcd 9256 (64 FR 47699, September 1, 1999), aff'd sub nom.
Cable & Wireless, 166 F.3d 1224.
\115\ See FY 2015 Report and Order, 30 FCC Rcd 10273, para. 12;
80 FR 55775.
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F. International Bearer Circuits
35. In 2009,\116\ the Commission adopted a new methodology for
calculating submarine cable international bearer circuits regulatory
fees by: (i) Eliminating the distinction between common carriers and
non-common carriers \117\ and (ii) assessing a flat per cable landing
license fee \118\ for all submarine cable systems with higher fees for
larger submarine cable systems and lower fees for smaller systems.\119\
The Commission concluded that the new methodology would be more
equitable and would encourage better compliance with the regulatory fee
requirements.\120\ The Commission did not revise the terrestrial and
satellite IBC regulatory fee methodology at that time because of the
``complexity of the legal, policy and equity issues involve
