Assessment and Collection of Regulatory Fees for Fiscal Year 2005; Assessment and Collection of Regulatory Fees for Fiscal Year 2004, 41967-41995 [05-14267]
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
3. Section 52.1627 is amended by
FEDERAL COMMUNICATIONS
designating the existing text as paragraph COMMISSION
(a) and by adding paragraph (b) to read
47 CFR Part 1
as follows:
I
§ 52.1627 Control strategy and
regulations: Carbon monoxide.
[MD Docket Nos. 05–59 and 04–73; FCC
05–137]
*
Assessment and Collection of
Regulatory Fees for Fiscal Year 2005;
Assessment and Collection of
Regulatory Fees for Fiscal Year 2004
*
*
*
*
(b) Approval—The Albuquerque/
Bernalillo County carbon monoxide
limited maintenance plan revision dated
September 7, 2004, meets the
requirements of section 172 of the Clean
Air Act, and is therefore approved.
[FR Doc. 05–14388 Filed 7–20–05; 8:45 am]
BILLING CODE 6560–50–P
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
SUMMARY: In this document, we
conclude a proceeding to collect
$280,098,000 in regulatory fees for
Fiscal Year (FY) 2005. These fees are
mandated by Congress and are collected
to recover the regulatory costs
41967
associated with the Commission’s
enforcement, policy and rulemaking,
user information, and international
activities. We also deny the petition for
reconsideration filed by Cingular
Wireless LLC of the Commission’s FY
2004 Report and Order.
DATES: Effective August 22, 2005.
FOR FURTHER INFORMATION CONTACT:
Roland Helvajian, Office of Managing
Director at (202) 418–0444 or Rob
Fream, Office of Managing Director at
(202) 418–0408.
SUPPLEMENTARY INFORMATION:
Adopted: July 1, 2005.
Released: July 7, 2005.
By the Commission: Commissioner
Copps concurring and issuing a
statement; Commissioner Adelstein
approving in part, concurring in part,
and issuing a statement.
TABLE OF CONTENTS
Paragraph
No.
Heading
I. Introduction .........................................................................................................................................................................................
II. Discussion .........................................................................................................................................................................................
A. Development of FY 2005 Fees ..................................................................................................................................................
1. Calculation of Revenue and Fee Requirements .................................................................................................................
2. Additional Adjustments to Payment Units ...........................................................................................................................
3. Commercial Mobile Radio Service (CMRS) Messaging Service ........................................................................................
4. Local Multipoint Distribution Service (LMDS) .....................................................................................................................
5. International Bearer Circuits ...............................................................................................................................................
6. Regulatory Fees for Direct Broadcast Service (DBS) Providers and Cable Television Operators ...................................
7. Multichannel Video Distribution and Data Service (MVDDS) .............................................................................................
8. Broadband Radio Service (BRS) / Educational Broadband Service (EBS), (formerly MDS/MMDS and ITFS) ................
9. Regulatory Fees for AM and FM Construction Permits .....................................................................................................
10. Clarification of Policies and Procedures ...........................................................................................................................
a. Ad Hoc Issues Concerning Our Regulatory Fee Exemption Policies .........................................................................
b. Regulatory Fee Obligations for Digital Broadcasters ..................................................................................................
c. Regulatory Fee Obligations for AM Expanded Band Broadcasters ............................................................................
d. Effective Date of Payment of Multi-Year Wireless Fees .............................................................................................
11. Notification, Assessment and Collection of Regulatory Fees ...........................................................................................
a. Interstate Telecommunications Service Providers (ITSPs) .........................................................................................
b. Satellite Space Station Licensees ...............................................................................................................................
c. Media Services Licensees ...........................................................................................................................................
d. Cable Television Subscribers ......................................................................................................................................
B. FY 2005 Fee Determination and FY 2004 Reconsideration .....................................................................................................
12. Commercial Mobile Radio Service (CMRS) Providers .....................................................................................................
III. Procedural Matters ...........................................................................................................................................................................
A. Payment of Regulatory Fees .....................................................................................................................................................
1. De Minimis Fee Payment Liability ......................................................................................................................................
2. Standard Fee Calculations and Payment Dates for Annual Regulatory Fees ...................................................................
3. Limitations on Credit Card Transactions ............................................................................................................................
B. Enforcement ...............................................................................................................................................................................
C. Congressional Review Act Analysis ..........................................................................................................................................
IV. Ordering Clauses .............................................................................................................................................................................
Attachments:
Attachment A Final Regulatory Flexibility Analysis
Attachment B Sources of Payment Unit Estimates for FY2005
Attachment C Calculation of Revenue Requirements and Pro-Rata Fees
Attachment D FY 2005 Schedule of Regulatory Fees
Attachment E Factors, Measurements, and Calculations that Determine Station Contours and Population Coverages
Attachment F List of Commenters
Attachment G FY 2004 Schedule of Regulatory Fees
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
I. Introduction
1. In this Order, we conclude a
proceeding to collect $280,098,000 in
regulatory fees for Fiscal Year (FY)
2005. These fees are mandated by
Congress and are collected to recover
the regulatory costs associated with the
Commission’s enforcement, policy and
rulemaking, user information, and
international activities.2 We also deny
the petition for reconsideration filed by
Cingular Wireless LLC of the
Commission’s FY 2004 Report and
Order.3
as licenses that are renewed for a
multiyear term, the resulting unit fee
was also divided by the term of the
license. These unit fees were then
rounded to the nearest $5 or $25 in
accordance with 47 U.S.C. 159(b)(2).
2. Additional Adjustments to Payment
Units
3. In calculating the FY 2005
regulatory fees in Attachment D, we
further adjusted the FY 2004 list of
payment units (Attachment B) based
upon licensee databases and industry
and trade group projections. Whenever
II. Discussion
possible, we verified these estimates
from multiple sources to ensure the
A. Development of FY 2005 Fees
accuracy of these estimates. In some
1. Calculation of Revenue and Fee
instances, Commission licensee
Requirements
databases were used, while in other
instances, actual prior year payment
2. As explained below, we adjust our
records and/or industry and trade
section 9 regulatory fees to reflect the
association projections were used in
requirement to collect $280,098,000 in
determining the payment unit counts.7
regulatory fees during FY 2005. As
4 this
Where appropriate, we adjusted and/or
described in the FY 2005 NPRM,
rounded our final estimates to take into
adjusted amount is $7,140,000, or
consideration variables that may impact
approximately 2.6 percent greater than
the number of payment units, such as
the $272,958,000 we were required to
waivers and/or exemptions that may be
collect during the previous fiscal year.
filed in FY 2005, and fluctuations in the
Each fiscal year, the Commission
number of licensees or station operators
proportionally allocates the total
due to economic, technical or other
amount that must be collected via
reasons. Therefore, when we note that
regulatory fees. The results of this
calculation are contained in Attachment our estimated FY 2005 payment units
are based on FY 2004 actual payment
C.5 For FY 2005, this allocation was
units, we may have rounded the number
done using FY 2004 revenues as a base.
for FY 2005 or adjusted it slightly to
From this base, a revenue amount for
account for these variables.
each fee category was calculated. Each
4. We consider additional factors to
fee category was then adjusted upward
determine regulatory fees for AM and
by 2.6 percent to reflect the increase in
FM radio stations. These factors are
regulatory fees from FY 2004 to FY
2005. These FY 2005 amounts were then facility attributes (class of service and
divided by the number of payment units type (AM or FM) of service), as well as
the population served by the radio
in each fee category to determine the
unit fee.6 In instances of small fees, such station. Calculating the population
served for each radio station is
2 47 U.S.C. 159(a).
determined by coupling current U.S.
3 Assessment and Collection of Regulatory Fees
Census Bureau data with technical and
for Fiscal Year 2004, Report and Order, 19 FCC Rcd
engineering data, as detailed in
11,662 (2004) (FY 2004 Report and Order); see infra
Attachment E. Consequently, the class
paras. 38–41.
and type of service, as well as the
4 See Assessment and Collection of Regulatory
Fees for Fiscal Year 2005, Notice of Proposed
Rulemaking, 70 FR at 9575, 9576, para. 5, (2005)
(FY 2005 NPRM).
5 It is important to note that the required increase
in regulatory fee payments of approximately 2.6
percent in FY 2005 is reflected in the revenue that
is expected to be collected from each service
category. Because this expected revenue is adjusted
each year by the number of estimated payment
units in a service category, the actual fee itself is
sometimes increased by a number other than 2.6
percent. For example, in industries where the
number of units is declining and the expected
revenue is increasing, the impact of the fee increase
may be greater.
6 In most instances, the fee amount is a flat fee
per licensee or regulatee. However, in some
instances the fee amount represents a unit
subscriber fee (such as for Cable, Commercial
Mobile Radio Service (CMRS) Cellular/Mobile and
CMRS Messaging), a per unit fee (such as for
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International Bearer Circuits), or a fee factor per
revenue dollar (Interstate Telecommunications
Service Provider fee). The payment unit is the
measure upon which the fee is based, such as a
licensee, regulatee, subscriber, etc.
7 The databases we consulted include, but are not
limited to, the Commission’s Universal Licensing
System (ULS), International Bureau Filing System
(IBFS), and Consolidated Database System (CDBS).
We also consulted industry sources including but
not limited to Television & Cable Factbook by
Warren Publishing, Inc. and the Broadcasting and
Cable Yearbook by Reed Elsevier, Inc., as well as
reports generated within the Commission such as
the Wireline Competition Bureau’s Trends in
Telephone Service and the Wireless
Telecommunications Bureau’s Numbering Resource
Utilization Forecast and Annual CMRS Competition
Report. For additional information on source
material, see Attachment B.
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population served, determine the
regulatory fee amount to be paid.
3. Commercial Mobile Radio Service
(CMRS) Messaging Service
5. In the FY 2005 NPRM, the
Commission proposed to continue its
policy of maintaining the CMRS
Messaging Service regulatory fee at the
rate calculated in FY 2003 and FY 2004
to avoid further contributing to the
financial hardships associated with a
declining subscriber base.8 We received
no comments or reply comments on this
matter. Consequently, we will maintain
the CMRS Messaging Service regulatory
fee at $0.08 per subscriber.
4. Local Multipoint Distribution Service
(LMDS)
6. In the FY 2004 proceeding, the
Commission identified a difference in
treatment between LMDS Block A and
Block B licensees for the purposes of
assessing section 9 regulatory fees. This
difference resulted in a
disproportionately higher fee obligation
on LMDS Block B licenses when
compared on a per-megahertz (MHz)
basis.9 As a result, in the FY 2005
NPRM, we proposed to amend the fee
schedule and assess LMDS regulatory
fees on a flat MHz basis.10 We received
two comments on this proposal. These
commenters oppose the proposal to
collect LMDS regulatory fees on a perMHz basis, arguing that the Commission
cannot use a per-MHz regulatory fee for
LMDS without using the same fee
methodology for the 24 GHz and 39 GHz
services.11 We decline to adopt a perMHz fee methodology for LMDS at this
8 See
FY 2005 NPRM, 70 FR at 9576, para. 5.
2004 Report and Order, 19 FCC Rcd 11,662,
11,669, para. 16. Block A licenses are authorized for
1150 MHz of spectrum, while Block B licenses are
authorized for 150 MHz of spectrum. Using the
authorized bandwidth for each license as the basis
for comparison, the Commission noted that the
regulatory fee for Block B licenses in FY 2004 was
significantly higher on a per-MHz basis than the fee
for Block A licenses. On a per-MHz basis, Block B
licensees, which are authorized for 150 MHz in the
31,000–31,075/31,225–31,300 MHz bands, paid
regulatory fees equivalent to $1.80 per MHz ($270
divided by 150 MHz) in FY 2004, while Block A
licensees, which are authorized for 1150 MHz of
spectrum, paid the equivalent $0.24 per MHz ($270
divided by 1150 MHz).
10 FY 2005 NPRM, 70 FR at 9577, para. 7. The
Commission proposed to set a per-MHz per unit fee
of $0.44 for LMDS licensees, and then multiply the
unit fee by the amount of bandwidth authorized for
Block A and Block B licenses. As proposed, in FY
2005 the regulatory fee amount for Block A
licensees would have been $0.44 multiplied times
1150 MHz = $506, rounded to $505; while the
amount for Block B licensees would have been
$0.44 multiplied times 150 MHz = $66, rounded to
$65.
11 Comments of XO Communications (XO), at 2–
7; Comments of the Law Firm of Blooston,
Mordkofsky, Dickens, Duffy & Prendergast
(BMDDP), at 2–4.
9 FY
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
time, and we will therefore retain our
existing methodology for assessing
LMDS fees for FY 2005.12
7. The commenters also argued that
LMDS should be reclassified for fee
assessment purposes as a microwave
service.13 The Commission determined
in its FY 2003 fee proceeding that LMDS
was developing on a separate track from
microwave services and that it should
be moved into a separate fee category.14
The Commission subsequently rejected
arguments to place LMDS in the
microwave fee category in the FY 2004
Report and Order.15 XO and BMDDP
have presented no new evidence or
arguments that would cause us to
reconsider that decision. We find no
compelling reason to reclassify LMDS as
a microwave service, which would
reduce the LMDS annual fee by more
than 80 percent, and thereby impose a
disproportionate financial burden on fee
payers in other service categories. We
therefore will maintain the existing
regulatory fee classification for LMDS
for FY 2005.
5. International Bearer Circuits
8. We decline to change or modify the
methodology for assessing regulatory
fees for international carriers at this
time. In the FY 2005 NPRM, we sought
comment on possible changes to the
regulatory fees assessed on international
carriers.16 Only three parties filed
comments and/or reply comments on
this matter.17 The Commission currently
assesses regulatory fees on international
carriers based on the number of active
international bearer circuits the carrier
had the previous year.18
12 However, we may revisit the per-MHz and
other fee methodologies in the future.
13 XO Comments at 2–5; BMDDP Comments at 4–
5.
14 Assessment and Collection of Regulatory Fees
for Fiscal Year 2003, Report and Order, 18 FCC Rcd
15,985, 15,989, at para. 9 (2003) (FY 2003 Report
and Order).
15 FY 2004 Report and Order, 19 FCC Rcd at
11,669, para. 16.
16 FY 2005 NPRM, 70 FR at 9577, 9578, paras. 11–
17.
17 Tyco filed comments and reply comments, SIA
filed comments and Level 3 filed reply comments
that addressed the international bearer circuit issue.
The parties generally argued that the current
methodology for assessing regulatory fees on the
number of active circuits favors older, lower
capacity systems, and a fee system based on cable
landing licenses and international section 214
authorizations would be administratively simpler
and provide an incentive for carriers to initiate new
services.
18 Regulatory fees for International Bearer Circuits
are to be paid by facilities-based common carriers
that have active international bearer circuits in any
transmission facility for the provision of service to
an end user or resale carrier, which includes active
circuits to themselves or to their affiliates. In
addition, non-common carrier satellite operators
must pay a fee for each circuit sold or leased to any
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9. We are not persuaded by these
commenters that a significant change to
our section 9 regulatory fee assessment
methodology for international bearer
circuits is warranted at this time, or that
the benefits of changing our assessment
methodology outweigh the costs of
modifying our systems and processes at
this time. We decline to adopt the Tyco
proposal to create a new, separate fee
category for non-common carrier cable
landing licensees at this time.19 As a
practical matter, we note that we have
at present no acceptable methodology
for allocating fee requirement between
categories of payers.20 Even if we had an
acceptable methodology, we would not
be able to undertake the required
analysis in time for FY 2005 fee
payments and still comply with the
section 9(b)(3) notification requirement.
Moreover, because creating a new
section 9 regulatory fee category would
impact other international carriers, we
would want to address the issue of
regulatory fee payments by international
carriers as a whole and not make
discrete changes for one category of
payers at this time. In addition, we
conclude that Tyco’s main concern is
addressed by modifying the section 9
regulatory fee for international bearer
circuits rather than creating an entirely
new category of section 9 regulatory
fees. To that end, we note that these fees
have declined substantially, due to
increased capacity in the active circuit
market: The FY 2005 section 9 fee
assessment of $1.37 per 64 kbps circuit
is just over half the $2.52 per 64 kbps
circuit fee adopted for FY 2004, and is
32% below the $2.01 per 64 kbps circuit
proposed in the FY 2005 NPRM. For
these reasons, we find that it would not
be appropriate to change the fee
customer, including themselves or their affiliates,
other than an international common carrier
authorized by the Commission to provide U.S.
international common carrier services. Noncommon carrier submarine cable operators are also
to pay fees for any and all international bearer
circuits sold on an indefeasible right of use (IRU)
basis or leased to any customer, including
themselves or their affiliates, other than an
international common carrier authorized by the
Commission to provide U.S. international common
carrier services. See Assessment and Collection of
Regulatory Fees for Fiscal Year 2001, MD Docket
No. 01–76, Report and Order, 16 FCC Rcd 13525,
13593 (2001); Regulatory Fees Fact Sheet: What You
Owe—International and Satellite Services Licensees
for FY 2004 at 3 (rel. July 2004) (the fact sheet is
available on the FCC Web site at: https://
hraunfoss.fcc.gov/edocs_public/attachmatch/DOC249904A4.pdf).
19 Tyco Comments at 7–8. We may revisit this
determination in the regulatory fee proceeding for
FY 2006.
20 Tyco proposes that the Commission use either
employee or employee-hour equivalents to establish
the regulatory fee requirements for non-common
carrier cable landing licensees. Tyco Comments at
23–25.
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41969
assessment for international carriers for
FY 2005. We note that in the FY 2005
NPRM, we stated that we would not
implement any changes to the bearer
circuit fee assessment methodology for
this FY 2005 collection cycle.21
6. Regulatory Fees for Direct Broadcast
Service (DBS) Providers and Cable
Television Operators
10. We decline to modify the FY 2005
regulatory fee assessment methodology
for DBS providers in response to the
comments of the National Cable and
Telecommunications Association
(NCTA) and American Cable
Association (ACA). NCTA argues that
cable operators pay a disproportionately
larger amount of the Commission’s
regulatory fees as compared to DBS
providers, despite the fact that they are
similarly situated competitors.22 NCTA
proposes that the Commission adopt the
same per-subscriber assessment for DBS
operators that applies to cable television
operators. DirecTV, Inc. and Echostar
Satellite L.L.C. (DirecTV & Echostar), in
joint reply comments, argue that the
cable operators have failed to make the
required showing to satisfy the legal
standard in section 9 of the Act for
changes to the Commission’s regulatory
fee structure.23 DirecTV and Echostar
further argue that the costs to the
Commission of regulating cable exceed
those associated with DBS.24
11. We agree that the cable
commenters have not made a
compelling argument, consistent with
the standard set forth in section 9(b)(3)
for ‘‘permitted amendments’’, to justify
a change to the section 9 regulatory fees
for DBS operators. Moreover, the
Commission has not provided notice for
a change to the fee methodology for DBS
operators. However, the Commission
may seek further information on this
issue during FY 2006 in order to fully
explore whether there is a legal basis for
such a change and to analyze the impact
of any change in the methodology used
to assess fees both for DBS providers
and cable television operators.
Therefore, for FY 2005, we will
continue to use our current
methodology for assessing regulatory
fees for cable television operators and
DBS operators.
21 FY
2005 NPRM, 70 FR at 9578, para. 16.
of NCTA at 4–8. See also ACA
Comments at 2–3 (arguing that the difference in
regulatory fee treatment increases the burden on
cable operators in small markets).
23 Reply Comments of DirectTV and Echostar at
3.
24 Id. at 5.
22 Comments
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
7. Multichannel Video Distribution and
Data Service (MVDDS)
12. We decline to establish a MVDDS
regulatory fee category at this time. In
our FY 2005 NPRM, we proposed that,
since MVDDS licenses were first
awarded in 2004 and equipment is still
under development, we would not
establish MVDDS as a new regulatory
fee category in FY 2005.25 We received
no comments or reply comments on this
matter. We therefore adopt our proposal
and will not establish a MVDDS
regulatory fee category for FY 2005.
8. Broadband Radio Service (BRS)/
Educational Broadband Service (EBS)
(Formerly MDS/MMDS and ITFS)
13. We note that the BRS/EBS
proceeding is currently pending.26 As
we stated in the FY 2005 NPRM, we are
exploring regulatory fee assessment
issues for BRS/EBS in that proceeding.27
To the extent we adopt any changes to
our regulatory fee rules in that
proceeding, such changes will not be
effective in time for the FY 2005
regulatory fee assessments. We expect to
make any appropriate adjustments in
the FY 2006 regulatory fee cycle or later.
9. Regulatory Fees for AM and FM
Construction Permits
14. At the inception of our regulatory
fee program in FY 1994, the regulatory
fee amount for construction permits was
set at an amount that, when compared
to licensed stations, was commensurate
to the limited nature of station
operations under the terms of a
construction permit. However, since
1994, the amount of fees that we have
been directed to collect each year has
steadily increased, while the number of
estimated payment units for these
construction permits has steadily
decreased. This combination of
increasing expected revenue and
decreasing payment units for these
construction permits has resulted in a
regulatory unit fee that is higher than
that of some licensed stations.
15. To rectify this situation, we
proposed to set the AM, FM, VHF, and
UHF construction permit fee to be no
higher than the regulatory fee associated
with the lowest licensed station for that
fee category, noting that because there
are unit and revenue variables in
25 FY
2005 NPRM, 70 FR at 9579, para. 21.
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 et al.,
Report & Order and Further Notice of Proposed
Rulemaking, 19 FCC Rcd 14165, 14293–97 (2004)
(R&O and FNPRM).
27 FY 2005 NPRM, 70 FR at 9579, paras. 22–23.
26 See
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assessing the per-unit regulatory fee, it
may be necessary to make revenue
adjustments each fiscal year to keep the
per unit regulatory fee for construction
permits at the level of the lowest
licensed fee for AM, FM, VHF, and UHF
stations. We did not receive any
comments or reply comments on this
matter. Therefore, beginning in FY 2005,
we will hold fee amounts for
construction permits in each respective
fee category (e.g., AM, FM, VHF and
UHF stations) to levels no higher than
the lowest fee amounts for licensed
facilities in each respective fee category,
and if necessary, will make adjustments
across only a narrow group of media fee
categories, such as AM, FM, VHF and
UHF stations, to keep the level of the
lowest respective licensed fee.
10. Clarification of Policies and
Procedures
a. Ad Hoc Issues Concerning Our
Regulatory Fee Exemption Policies
16. Pursuant to 47 CFR 1.1162, the
Commission does not establish
regulatory fees for applicants,
permittees, and licensees who qualify as
government entities or non-profit
entities. Despite the language of 47 CFR
1.1162, we still frequently encounter
uncertainty and comments from parties
with respect to our fee exemption
policies. In our FY 2005 NPRM, we
proposed certain clarifications to our
exemption policies.28 We received no
comments or reply comments regarding
our fee exemption policies. Therefore,
we will be incorporating these
clarifications into the text of the
regulatory fee public notices that are
generated each year prior to the
collection of regulatory fees.
17. Terminology: In the ensuing
discussion, ‘‘facility’’ includes ‘‘station’’
and ‘‘licensee’’ includes ‘‘permittee.’’
‘‘October 1’’ means the close of business
on October 1, the first day of the
government fiscal year. ‘‘Fee Due Date’’
means the close of business on the day
determined to be the final date by which
regulatory fees must be paid. The Fee
Due Date usually occurs in August or
September. An ‘‘Exempt Entity’’ is a
legal entity that is relieved of the burden
of paying annual regulatory fees.
18. Determination of Fee Code for a
Facility: The fee code is determined by
the operational status of the facility as
of October 1 of each year. This involves
factors such as whether the facility is in
a Construction Permit (CP) or Licensed
status and a variety of other factors.
Every facility has a fee code.
28 FY
2005 NPRM, 70 FR at 9579, 9580, paras. 26–
30.
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19. Facility Changes During the Year:
There is no prorating of regulatory fees.
For example, if a facility is in
construction permit status as of the
close of business October 1, but a
license is granted on or after October 2,
that facility is considered to be in
construction permit status for the entire
year. Other facility changes during the
course of the year, such as technical
changes, are treated in the same manner.
20. Establishment of Exempt Status:
State, local, and Federal government
agencies and IRS-certified not-for-profit
entities are generally exempt from
payment of regulatory fees. The
Commission requires that each exempt
entity have on file a valid IRS
Determination Letter or certification
from a government authority
documenting its exempt status. In
instances where there is a question
regarding the exempt status of an entity,
the FCC may request, at any time, for
the entity to submit an IRS
Determination Letter or certification
from a government authority that
documents its exempt status.
21. Subsidiaries of Exempt Entities:
The licensee of a facility may be distinct
from the ultimate owner. Exempt
entities may hold one or more licenses
for media facilities directly and/or
through subsidiaries. Facilities licensed
directly to an exempt entity and its
exempt subsidiaries are excused from
the regulatory fee obligation. However,
licensees that are for-profit subsidiaries
of exempt entities are subject to
regulatory fees regardless of the exempt
status of the ultimate owner.
Examples
A University owns a commercial
facility whose profits are used to
support the University and/or its
programs. If the facility is licensed to
the University directly, or to an exempt
subsidiary of the University, it is
exempt from regulatory fees. If,
however, the license is held by a forprofit subsidiary, regulatory fees are
owed, even though the University is an
exempt entity.
A state pension fund is the majority
owner of a for-profit commercial
broadcasting firm. The facilities
licensed to the for-profit broadcasting
firm would be subject to regulatory fees,
even though it is owned by an exempt
agency.
22. Responsible Party, and the Effects
of Transfers of Control: The entity
holding the license for a facility as of
the Fee Due Date is responsible for the
regulatory fee for that facility. Eligibility
for a regulatory fee exemption is
determined by the status of the licensee
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as of the Fee Due Date, regardless of the
status of any previous licensee(s).
b. Regulatory Fee Obligations for Digital
Broadcasters
23. In our FY 2005 NPRM, we noted
that our current schedule of regulatory
fees does not include service categories
for digital broadcasters.29 Licensees in
the broadcast industry pay regulatory
fees based on their analog facilities. For
licensees that broadcast in both the
analog and digital formats, the only
regulatory fee obligation at the present
time is for their analog facility.
Moreover, a licensee that has fully
transitioned to digital broadcasting and
has surrendered its analog spectrum
would have no regulatory fee obligation
under the current fee regime. We sought
comment on whether to establish a
regulatory fee category for digital
broadcasters, but received no comments
or reply comments on this matter.30 At
this time, we will maintain the
regulatory fee obligation that applies
only for the analog facility.
c. Regulatory Fee Obligations for AM
Expanded Band Broadcasters
24. We do not require AM Expanded
Band radio stations to pay section 9
regulatory fees for their expanded band
AM station at this time. In the FY 2005
NPRM, we proposed to clarify this point
and to explain that licensees that
operate a standard band AM station
(540–1600 kHz) that is linked to an AM
Expanded Band station are subject to
regulatory fees for their standard band
station only.31 We recognized
uncertainty about the regulatory fee
status in the industry that resulted from
the fact that AM Expanded Band radio
service is not among the Commission’s
categories of general exemptions from
regulatory fees specified in the
Commission’s rules.32 We received no
comments or reply comments on this
matter.
25. We will continue to refrain from
requiring AM Expanded Band radio
stations to pay section 9 regulatory fees
for their stations. However, we note that
our decision not to require section 9
regulatory fee payments for AM
Expanded Band stations is not a
permanent exemption from regulatory
fees for AM Expanded Band Radio
Service. Because the movement to the
expanded band is voluntary and helps
to reduce interference in the standard
bandwidth, we will continue our policy
of not subjecting this relatively small
29 Id.
at 9580, para. 31.
para. 33.
31 Id., para. 34–36.
32 47 CFR 1.1162.
30 Id.,
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group of stations to regulatory fees.
However, at some future point when the
migration of standard band broadcasters
to the Expanded Band has advanced, we
may consider establishing § 9 regulatory
fee requirements for AM Expanded
Band stations.
d. Effective Date of Payment of MultiYear Wireless Fees
26. The first eleven fee categories in
our Attachment D, Schedule of
Regulatory Fees, constitute a general fee
category known as multi-year wireless
fees. Regulatory fees for this category are
generally paid in advance, and for the
amount of the entire 5-year or 10-year
term of the license. Because regulatory
fees are paid at the time of license
renewal (or at the time of a new
application), these fees can be paid at
any time during the fiscal year. As a
result, there has been some confusion as
to the regulatory fee rate that should
apply at the time of license renewal.
Current fiscal year regulatory fees
generally become effective 30 or 60 days
after publication of the fees Order in the
Federal Register, or in some instances,
90 days after delivery of the Order to
Congress. Current procedures regarding
the renewal of multi-year wireless fees
stipulate that licensees may submit their
fee payments no more than 90 calendar
days prior to the expiration of their
licenses. The regulatory fee rate that
applies at the time of renewal (or at the
time of an application for a new license)
depends on the date that payment is
physically received within the 90 day
period, and how this date relates to the
‘‘effective date’’ of the current fiscal year
regulatory fees. Generally, the ‘‘effective
date’’ of the current fiscal year
regulatory fees is published in our fee
public notices soon after the Order is
released. If the renewal payment (or
application of a new license) is
physically received before the ‘‘effective
date,’’ the prior fiscal year regulatory fee
rate applies. If the renewal payment (or
application of a new license) is
physically received on or after the
‘‘effective date’’, the current fiscal year
regulatory fee rate applies.
11. Notification, Assessment and
Collection of Regulatory Fees
27. Each year, we generate public
notices and fact sheets that notify
regulatees of the fee payment due date
and provide additional information
regarding regulatory fee payment
procedures. Accordingly, in FY 2005, as
in prior years, we will make available to
all regulatees these public notices, fact
sheets and other relevant fee payment
information on our Web site at https://
www.fcc.gov/fees/regfees.html. In the
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event that regulatees do not have access
to the Internet, we will mail public
notices and other relevant materials
upon request. Regulatees and the
general public may request such
information by contacting the FCC
CORES HelpDesk at (877) 480–3201,
Option 4.
28. In addition to making the above
information available on-line for all of
our regulatees, we proposed in our FY
2005 NPRM to send specific regulatory
fee assessments or bills by surface mail
to regulatees in a select group of fee
categories.33 We are pursuing our billing
initiatives as part of our effort to
modernize our financial practices.
Eventually, we may expand our billing
initiatives to include all regulatory fee
service categories. For now, based on
the results of our assessment and billing
initiatives from last year, and the
resources currently available to us, we
will proceed with our various FY 2005
initiatives as described below.
a. Interstate Telecommunications
Service Providers (ITSPs)
29. In FY 2001, we began sending precompleted FCC Form 159–W
assessments to carriers in an effort to
assist them in paying the Interstate
Telecommunications Service Provider
(ITSP) regulatory fee.34 The fee amount
on FCC Form 159–W was calculated
from the FCC Form 499–A report, which
carriers are required to submit by April
1st of each year. Throughout FY 2002
and FY 2003, we refined the FCC Form
159–W to simplify the regulatory fee
payment process.35 In FY 2004, we
generated and mailed the same precompleted FCC Form 159–W’s to
carriers under the same dissemination
procedures, but we informed them that
we will be treating the amount due on
Form 159–W as a bill, rather than as an
33 FY 2005 NPRM, 70 FR at 9575, paras. 38–61.
We clarify the distinction between an assessment
and a bill. An ‘‘assessment’’ is a proposed statement
of the amount of regulatory fees owed by an entity
to the Commission (or proposed subscriber count to
be ascribed for purposes of setting the entity’s
regulatory fee). An assessment is not entered into
the Commission’s accounts receivable system as a
current debt. A ‘‘bill’’ is automatically entered into
our financial records as a debt owed to the
Commission. Bills reflect the amount owed and
have a due date of the last day of the fee payment
window. Consequently, if a bill is not paid by the
due date, it becomes delinquent and is subject to
our debt collection procedures. See also 47 CFR
1.1161(c), 1.1164(f)(5), 1.1910.
34 See Assessment and Collection of Regulatory
Fees for Fiscal Year 2001, Report and Order, 16 FCC
Rcd 13525, at 13590, para. 67 (2001) (FY 2001
Report and Order). See also FCC Public Notice—
Common Carrier Regulatory Fees (August 3, 2001)
at 4.
35 Beginning in FY 2002, the Form 159–W
included a payment section that allowed carriers
the opportunity to send in Form 159–W in lieu of
completing Form 159 Remittance Advice Form.
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assessment. Other than the manner in
which Form 159–W payments were
entered into our financial system,
carriers experienced no procedural
changes regarding the use of the FCC
Form 159–W when submitting payment
of their FY 2004 ITSP regulatory fees. In
our FY 2005 NPRM, we sought comment
on this billing initiative and on ways to
improve it.
30. We received no comments or reply
comments on our ITSP billing initiative
for FY 2005. We will continue our ITSP,
Form 159–W, billing initiative in FY
2005.
b. Satellite Space Station Licensees
31. In FY 2004, for the first time, we
mailed regulatory fee bills through
surface mail to all licensees in our two
satellite space station service categories.
Specifically, geostationary orbit space
station (‘‘GSO’’) licensees received bills
for their operational satellites; 36 and
non-geostationary orbit space station
(‘‘NGSO’’) licensees received bills for
their systems.37 In our FY 2005 NPRM,
we proposed to continue our billing
initiative for our GSO and NGSO
satellite space station categories. We
sought comment on this proposal and
received comments from the Satellite
Industry Association (‘‘SIA’’).
32. SIA states that its members
experienced a wide range of problems
with our billing system in FY 2004. For
example, in some cases licensees did
not receive a pre-printed bill for all of
their space stations.38 Several satellite
operators report that they received bills
that substantially undercounted the
number of space stations for which they
owed fees. However, the bills that were
issued in FY 2004 lacked call sign
information, making it impossible for
most operators to determine which
satellites were missing from their bills.
SIA offered suggestions for improving
the process.39
36 ‘‘Satellites’’ are in operation on the first day of
the fiscal year and not co-located with and
technically identical to another operational satellite
(i.e., not functioning as a spare satellite) on the first
day of the fiscal year.
37 ‘‘Systems’’ are licensed by the Commission and
operational on the first day of the fiscal year.
38 SIA Comments at 11.
39 Id. Specifically, SIA suggests: (1) Licensees
should be issued a single bill that lists all the space
stations for which the Commission believes the
licensee owes fees; (2) call signs should be included
on bills so that licensees can verify the accuracy of
the billing information; (3) procedures should be in
place to permit a bill to be modified or
supplemented if it is incorrect; (4) bills should be
mailed well in advance of the payment deadline so
that licensees have a reasonable period to review
the bill, seek additional information, if needed, and
correct any errors prior to the payment due date;
and (5) the Commission staff members who are
knowledgeable about satellite licensing should be
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33. We have modified our Fee Filer
online payment system so that it will
address most of SIA’s suggested
corrective measures.40 We will address
SIA’s other suggestions by generating
and mailing the bills at the earliest
allowable date after this FY 2005 Order
becomes effective. We will also ensure
that we will have knowledgeable staff
available to assist licensees with their
billing questions and to resolve any bill
disputes.
c. Media Services Licensees
34. In our FY 2005 NPRM, we
proposed that we would continue to
generate regulatory fee assessment
postcards for media services following
the same procedures we used in FY
2004. We noted that we mail the
postcards on a per-facility basis and that
they serve to provide parties with the
fee payment due date and the assessed
fee amount for the facility (as well as the
data attributes that were used to
determine the amount).41 We received
no comments or reply comments on our
proposal. We will continue our
assessment initiative for media services
entities as we originally proposed.
Specifically, we will mail a single round
of postcards to licensees and their other
known points of contact in our
Consolidated Database System (CDBS)
and Commission Registration System
(CORES)—our two official databases for
media services. By doing so, licensees
and their points of contact will all be
furnished with the same fee information
for the facility in question. The
postcards will direct parties to a
Commission-authorized Web site to
update or correct fee information
regarding the facility, or to certify their
available to assist licensees by answering questions
and resolving problems.
40 Although the process of mailing one bill per
space station will continue unchanged, Fee Filer
will automatically find and consolidate all
regulatory fees which have been billed, based upon
FCC Registration Number (FRN) and password
entered. Information that describes each individual
fee will include FRN, call sign, and the fee amount.
This information will be subject to review by the
Fee Filer user, who can then make modifications,
deletions or additions online. After the user
confirms the details of each fee, he/she may print
a one-page Remittance Voucher which is to
accompany the payment. The one-page Remittance
Voucher will reflect the total payment and the
detail applicable to that summary payment.
41 Fee assessments were issued for AM and FM
Radio Stations, AM and FM Construction Permits,
FM Translators/Boosters, VHF and UHF Television
Stations, VHF and UHF Television Construction
Permits, Satellite Television Stations, Low Power
Television (LPTV) Stations, and LPTV Translators/
Boosters. Fee assessments were not issued for
broadcast auxiliary stations, nor will they be issued
for them in FY 2005.
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fee-exempt status if need be.42 The
postcards will also provide the
telephone number of our FCC CORES
Help Desk at (877) 480–3201, Option 4,
in the event that parties need additional
assistance.
35. We emphasize that parties must
still submit a completed Form 159 with
their fee payment, despite having
received an assessment postcard. The
postcards are not to be used as a
substitute for completing a Form 159.
We cannot guarantee that a party’s
regulatory fees will be posted accurately
against its account if a completed Form
159 is not returned with the fee
payment. We also emphasize that the
facility ID is the most important data
element that parties need to include on
their completed Form 159. The facility
ID is a unique identifier that never
changes over the course of a facility’s
existence (unlike its call sign). We
prominently display each facility’s
facility ID on its assessment postcard,
and our Form 159 filing instructions
require that each facility’s facility ID
(and call sign) needs to be provided.
However, each year we typically receive
many incomplete Form 159s that do not
provide the facility ID of the facility
whose fee is being paid.
d. Cable Television Subscribers
36. We adopt our proposal to generate
fee assessment letters for cable operators
who are on file as having paid FY 2004
regulatory fees for their basic cable
subscribers.43 We received no
comments or reply comments on this
issue. Under our proposal, our
assessment letter to each operator would
announce the due date for payment of
FY 2005 regulatory fees; reflect the
subscriber count for which the operator
paid FY 2004 regulatory fees; and
request that the operator access a
Commission-authorized Web site to
provide its aggregate count of basic
cable subscribers as of December 31,
2004—the date that cable operators are
to use as the basis for determining their
regulatory fee obligations for basic cable
subscribers. If the number of subscribers
as of December 31, 2004 differs from the
number paid for FY 2004, operators
would be required to provide a brief
explanation for the differing subscriber
counts and indicate when the difference
occurred. Cable operators who do not
have access to the Internet would be
able to contact the FCC CORES Help
Desk at (877) 480–3201, Option 4, to
provide their subscriber count as of
42 The Commission-authorized Web site will be
available on-line throughout this summer. The site’s
Web address is https://www.fccfees.com.
43 FY 2005 NPRM, 70 FR at 9583, para. 57.
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December 31, 2004. Payment procedures
for FY 2005 regulatory fees are the same
as they were in previous years. For
example, cable operators are to
complete the FCC Form 159 Remittance
Advice when making their payment,
and are to certify their December 31,
2004 subscriber count in Block 30 of the
Form 159.
37. We also sought comment on a
proposal to require the cable television
operators to annually report their basic
subscriber counts to the Commission
prior to paying regulatory fees for the
fiscal year in question.44 The
Commission proposed to use the
reported subscriber counts to audit
regulatory fee payments that are
collected later in the fiscal year. NCTA
was the only commenter on this
proposal. NCTA agreed that a June 1st
reporting requirement could be met
with accurate subscriber information
from the previous year and would not
be unduly burdensome for operators to
file.45 We do not adopt a subscriber
reporting requirement at this time. We
will continue to assess our need for
information to manage the regulatory fee
assessment program and may revisit this
issue in the future.
B. FY 2005 Fee Determination and FY
2004 Reconsideration
12. Commercial Mobile Radio Service
(CMRS) Providers
38. In this section, we address the
arguments presented by Cingular and
CTIA in their comments to the FY 2005
NPRM. In addition, we address
Cingular’s petition for reconsideration
of the Commission’s FY 2004 Report
and Order and the comments filed in
response to Cingular’s petition.46
39. Prior to FY 2004, the Commission
relied on Cellular, PCS, and SMR
providers to compute and submit the
regulatory fee applicable to them based
on the number of their subscribers.
Beginning in fiscal year 2004, the
Commission decided to take an
alternative approach and adopted a
system of mailing assessments to
Cellular, PCS, and SMR providers based
on subscriber data contained in their
44 Id.,
paras. 60–61.
Comments at 2.
46 See Cingular Wireless LLC Petition for
Reconsideration, MD Docket No. 04–73, filed Aug.
6, 2004 (Cingular Petition). We received comments
in support of the Cingular Petition from CTIA—The
Wireless AssociationTM (CTIA) and joint comments
from seven wireless carriers (American Cellular
Corporation, AT&T Wireless Services, Inc., Dobson
Cellular Systems, Inc., Nextel Communications,
Inc., Sprint Corporation, T-Mobile USA, Inc., and
Western Wireless Corporation) (Wireless Carriers).
We also received reply comments in support of the
petition from the Rural Telecommunications Group,
Inc. (RTG).
45 NCTA
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Numbering Resource Utilization
Forecast (NRUF) reports.47 NRUF data is
collected by the North American
Numbering Plan Administrator
(NANPA) to monitor the utilization of
telephone numbers by carriers. For
purposes of assessing regulatory fees,
the Commission uses the count of
‘‘assigned’’ telephone numbers (TN’s) 48
stated by carriers in their NRUF reports
(adjusted for porting).49 For carriers not
required to file NRUF reports, the selfcomputation method still applies.50
40. We disagree with the arguments of
Cingular, CTIA, and others that the
NRUF data are not sufficiently accurate
for the purpose of assessing regulatory
fees for the three classes of Commercial
Mobile Radio Service (CMRS)
providers—the Cellular Radiotelephone
Service, the Personal Communications
Service (PCS), and the Specialized
Mobile Radio (SMR) Service. Evidence
of the accuracy and reliability of the
NRUF data can be found in the fact that
while the initial FY 2004 assessment
letters calculated regulatory fees based
on approximately 162.36 million
numbers, the reconciliation process,
based on provider responses, revised the
regulatory fee assessment by only 1.4
percent (to 160.02 million numbers).
Further evidence of the reliability of the
NRUF data is that in FY 2004, we issued
127 initial assessment letters to CMRS
providers. Only 3.2 percent of the
respondents had adjustments of greater
than 5,000 subscribers but less than
20,000; and only 5.5 percent had
adjustments of greater than 20,000
subscribers. This experience indicates
that NRUF data is sufficiently reliable
and accurate for the purposes of
assessing section 9 regulatory fees. We
therefore reject Cingular’s request to
reconsider the use of NRUF data in
calculating FY 2004 fees for these three
classes of CMRS carriers. We will also
continue to rely on the NRUF data for
the FY 2005 regulatory fee assessments
for these carriers.
41. Further, we find no basis for the
assertion in Cingular’s petition that a
lack of clarity in the NRUF definition of
‘‘intermediate’’ TN’s (number made
47 FY 2004 Report and Order, 19 FCC Rcd at
11,675–76 para. 45.
48 ‘‘Assigned’’ numbers are ‘‘numbers working in
the Public Switched Telephone Network under an
agreement such as a contract or tariff at the request
of specific end users or customers for their use, or
numbers not yet working but having a customer
service order pending.’’ Instructions for Utilization
and Forecast Forms, FCC Form 502 (Jun. 2003).
49 The porting information is developed from the
telephone number porting database managed by the
Local Number Portability Administrator, NeuStar,
Inc.
50 FY 2004 Report and Order, 19 FCC Rcd at
11,677 para. 49.
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available for use by another
telecommunications carrier or noncarrier entity) unduly complicates the
correction process and makes the NRUF
data unreliable.51 The Commission’s fee
assessment is based only on the number
of ‘‘assigned’’ TN’s stated in the NRUF
report. Thus, to the extent that a carrier
categorizes TN’s as ‘‘intermediate,’’ it
has no need to make a correction.
42. These facts suggest that using
NRUF data has not led to inaccurate or
unfair assessments for CMRS providers.
They also demonstrate that the
Commission has a method to address
and correct for potential anomalies that
the NRUF data may implicate. We
therefore disagree with Cingular and
others that using NRUF data, combined
with the reconciliation process, may
result in overpayment of regulatory
fees.52 In fact, using NRUF data, which
is subject to verification, will likely
produce more accurate assessments than
the self-assessment method the
Commission previously used. Our
experience in FY 2004 indicates that—
far from being overly burdensome—this
process offers CMRS providers an
opportunity to correct potential errors in
their data for section 9 regulatory fee
assessment purposes.53
43. We also reject the arguments of
Cingular and others that the two-step
process that we established in the FY
2004 Report and Order—sending an
initial assessment letter, which a CMRS
provider may correct, followed by a
final assessment letter—is unduly
burdensome.54 Cingular maintains that
the correction process contemplates a
burdensome number-by-number
reconciliation of the NRUF data and a
carrier’s actual subscriber count. We
clarify that carriers are not required to
perform number-by-number
reconciliations when making
corrections. Carriers may make
corrections on an aggregate basis. We
will review the letters, and decide
whether to accept the revised totals.
Based upon this feedback, we will send
out a second assessment letter that will
coincide with the payment period of
regulatory fees. This second assessment
letter with aggregate totals will
constitute the basis upon which FY
2005 regulatory fees will be paid. If we
receive no response to our initial
assessment letter within 21 days, we
will assume that no corrections are
required and the final assessment letter,
which is mailed approximately 30 days
51 Cingular
Petition at 4–5.
Petition at 3, 5–6.
53 Cingular Petition at 5–6. See also CTIA
Comments at 3.
54 Cingular Petition at 5–6.
52 Cingular
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after the initial letter, will base the fee
payment due on the number of
subscribers listed on the initial
assessment. In response to Cingular’s
questions as to whether the Commission
intends to allow carriers to correct socalled ‘‘contaminated numbers’’
(numbers used by a thousands-block
carrier before donating the remainder of
the block to the pool),55 we clarify that
carriers are permitted to address
‘‘contaminated numbers.’’ Paragraph 46
of the FY 2004 Report and Order
specifically links the correction process
with the problem of ‘‘contaminated
numbers.’’ To the extent that paragraph
46 of the FY 2004 Report and Order
does not unequivocally provide that
carriers may correct the initial
assessment letter to account for
‘‘contaminated numbers,’’ we hereby
clarify that they may do so.
44. We will continue to use the twostep process for assessing section 9
regulatory fees on CMRS providers as
proposed in the FY 2005 NPRM.56
Specifically, we will continue to mail an
initial regulatory fee assessment to
CMRS providers based on information
they submit on their NRUF forms. The
initial assessment letter will include a
list of the carriers’ Operating Company
Numbers (OCNs), and an aggregate total
of assigned numbers (adjusted for
porting) upon which the assessment is
based.57 If the number of subscribers on
the initial assessment letter differs from
the data included on their NRUF forms,
CMRS providers may amend their initial
assessment letter to identify their
subscriber count as of December 31,
2004.
III. Procedural Matters
A. Payment of Regulatory Fees
1. De Minimis Fee Payment Liability
45. As in the past, regulatees whose
total FY 2005 regulatory fee liability,
including all categories of fees for which
payment is due, amounts to less than
$10 will be exempted from payment of
FY 2005 regulatory fees.
55 Cingular
56 See
Petition at 3.
FY 2005 NPRM, 70 FR at 9579, para. 51–
52.
57 Additionally, paragraph 48 of the FY 2004
Report and Order indicates that ‘‘[i]f some
subscribers are no longer customers, but have been
assigned to another company, please indicate the
company which has acquired these subscribers.’’
Cingular suggests that it is unnecessary to report
numbers because the Commission already takes
ported numbers into account using the LNP
database. Cingular Petition at 3. We agree with
Cingular that it is generally unnecessary to correct
ported numbers.
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2. Standard Fee Calculations and
Payment Dates for Annual Regulatory
Fees
46. The responsibility for payment of
annual regulatory fees by service
category is as follows: 58
(a) Media Services: The responsibility
for the payment of regulatory fees rests
with the holder of the permit or license
as of October 1, 2004. However, in
instances where a license or permit is
transferred or assigned after October 1,
2004, responsibility for payment rests
with the holder of the license or permit
at the time payment is due.
(b) Wireline (Common Carrier)
Services: Fees must be paid for any
authorization issued on or before
October 1, 2004. However, where a
license or permit is transferred or
assigned after October 1, 2004,
responsibility for payment rests with the
holder of the license or permit at the
time payment is due.
(c) Wireless Services: Commercial
Mobile Radio Service (CMRS) cellular,
mobile, and messaging services (fees
based upon a subscriber, unit or circuit
count): Fees must be paid for any
authorization issued on or before
October 1, 2004. The number of
subscribers, units or circuits on
December 31, 2004 will be used as the
basis from which to calculate the fee
payment.
(d) Multichannel Video Programming
Distributor Services (basic cable
television subscribers and CARS
licenses): The number of subscribers on
December 31, 2004 will be used as the
basis from which to calculate the fee
payment.59 For CARS licensees, fees
must be paid for any authorization
issued on or before October 1, 2004. The
responsibility for the payment of
regulatory fees for CARS licenses rests
with the holder of the permit or license
on October 1, 2004. However, in
instances where a CARS license or
permit is transferred or assigned after
October 1, 2004, responsibility for
58 Note that regulatees in the service categories
that are shaded in grey in Attachment D do not pay
annual regulatory fees. We collect regulatory fees
from these entities in advance to cover the term of
license. Fee payments from these entities are
submitted along with their initial authorization or
renewal application when that application is filed.
59 Cable television system operators should
compute their basic subscribers as follows: Number
of single family dwellings + number of individual
households in multiple dwelling unit (apartments,
condominiums, mobile home parks, etc.) paying at
the basic subscriber rate + bulk rate customers +
courtesy and free service customers. Note: BulkRate 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 2004, rather than on a count as of
December 31, 2004.
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payment rests with the holder of the
license or permit at the time payment is
due.
(e) International Services: For earth
stations and geostationary orbit space
stations, payment is calculated on a per
operational station basis. For nongeostationary orbit satellite systems,
payment is calculated on a per
operational system basis. The
responsibility for the payment of
regulatory fees rests with the holder of
the permit or license on October 1,
2004. However, in instances where a
license or permit is transferred or
assigned after October 1, 2004,
responsibility for payment rests with the
holder of the license or permit at the
time payment is due. For international
bearer circuits, payment is calculated on
a per active circuit basis as of December
31, 2004.
47. We strongly recommend that
entities who will be submitting more
than twenty-five (25) Form 159–C’s use
the electronic Fee Filer program when
sending their regulatory fee payment.
We will, for the convenience of payers,
accept fee payments made in advance of
the normal formal window for the
payment of regulatory fees.
3. Limitations on Credit Card
Transactions
48. The U.S. Treasury has advised the
Commission that it may begin rejecting
Credit Card transactions greater than
$99,999.99 from a single credit card in
a single day. The U.S. Treasury has
published Bulletin No. 2005–03 in
which Federal Agencies are directed to
limit credit card collections per these
rules. The Commission will institute
policies to conform to the U.S. Treasury
policy. Entities needing to remit
amounts of $100,000.00 or greater
should use check, ACH or Fed Wire
payment methods. Additional
information can be found at https://
www.fcc.gov/fees.
B. Enforcement
49. As a reminder to all licensees,
section 159(c) of the Communications
Act requires us to impose an additional
charge as a penalty for late payment of
any regulatory fee. As in years past,
Failure to pay regulatory fees and/or any
late payment penalty will subject
regulatees to sanctions, including the
provisions set forth in the Debt
Collection Improvement Act of 1996
(‘‘DCIA’’). We also assess administrative
processing charges on delinquent debts
to recover additional costs incurred in
processing and handling the related
debt pursuant to the DCIA and section
1.1940(d) of the Commission’s rules.
These administrative processing charges
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will be assessed on any delinquent
regulatory fee, in addition to the 25
percent late charge penalty. Partial
underpayments of regulatory fees are
treated in the following manner. The
licensee will be given credit for the
amount paid, but if it is later
determined that the fee paid is incorrect
or was submitted after the deadline
date, the 25 percent late charge penalty
will be assessed on the portion that is
submitted after the filing window.
50. Furthermore, we amended our
regulatory fee rules effective November
1, 2004, to provide that we will
withhold action on any applications or
other requests for benefits filed by
anyone who is delinquent in any nontax 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.
See 47 CFR 1.1161(c), 1.1164(f)(5), and
1.1910. Failure to pay regulatory fees
can also result in the initiation of a
proceeding to revoke any and all
authorizations held by the delinquent
payer.
C. Congressional Review Act Analysis
51. The Commission will send a copy
of this Order in MD Docket No. 05–59
and Order on Reconsideration in MD
Docket No. 04–73 in a report to be sent
to Congress and the General Accounting
Office pursuant to the Congressional
Review Act, see 5 U.S.C. 801(a)(1)(A).
IV. Ordering Clauses
52. Accordingly, it is ordered
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) that the FY 2005
9 regulatory fee assessment
requirements are adopted as specified
herein.
53. It is further ordered, pursuant to
sections 4(i) and (j), 9, 303(r), and 405
of the Communications Act of 1934, 47
U.S.C. 154(i), 154(j), 159, 303(r), and
405, 47 U.S.C. 405 and 47 CFR 1.106
that the Petition for Reconsideration,
filed August 6, 2004, by Cingular
Wireless LLC is denied.
54. It is further ordered that part 1 of
the Commission’s rules are amended as
set forth in Attachment G, and that these
rules shall become effective August 22,
2005.
55. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Order in MD Docket No. 05–59 and
Order on Reconsideration in MD Docket
No. 04–73, including the Final
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Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the U.S.
Small Business Administration.
56. It is further ordered that this
proceeding is terminated.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Attachment A—Final Regulatory
Flexibility Analysis
57. As required by the Regulatory
Flexibility Act (RFA),60 the Commission
prepared an Initial Regulatory
Flexibility Analysis (IRFA) of the
possible significant economic impact on
small entities by the policies and rules
in its Notice of Proposed Rulemaking, In
the Matter of Assessment and Collection
of Regulatory Fees for Fiscal Year 2005.
Written public comments were sought
on the FY 2005 fees proposal, including
comments on the IRFA. This present
Final Regulatory Flexibility Analysis
(FRFA) conforms to the RFA.61
I. Need for, and Objectives of, the
Proposed Rules
58. This rulemaking proceeding is
initiated to amend the Schedule of
Regulatory Fees in the amount of
$280,098,000, the amount that Congress
has required the Commission to recover.
The Commission seeks to collect the
necessary amount through its revised
Schedule of Regulatory Fees in the most
efficient manner possible and without
undue public burden.
II. Summary of Significant Issues
Raised by Public Comments in
Response to the IRFA
59. None.
III. Description and Estimate of the
Number of Small Entities to Which the
Proposed Rules Will Apply
60. 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.62 The RFA generally defines
the term ‘‘small entity’’ as having the
same meaning as the terms ‘‘small
business,’’ ‘‘small organization,’’ and
‘‘small governmental jurisdiction.’’ 63 In
addition, the term ‘‘small business’’ has
the same meaning as the term ‘‘small
business concern’’ under the Small
60 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has
been amended by the Contract With America
Advancement Act of 1996, Public Law 104–121,
110 Stat. 847 (1996) (CWAAA). Title II of the
CWAAA is the Small Business Regulatory
Enforcement Fairness Act of 1996 (SBREFA).
61 5 U.S.C. 604
62 5 U.S.C. 603(b)(3).
63 5 U.S.C. 601(6).
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Business Act.64 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.65
61. Small Businesses. Nationwide,
there are a total of 22.4 million small
businesses, according to SBA data.66
62. Small Organizations. Nationwide,
there are approximately 1.6 million
small organizations.67
63. Small Governmental Jurisdictions.
The term ‘‘small governmental
jurisdiction’’ is defined as ‘‘governments
of cities, towns, townships, villages,
school districts, or special districts, with
a population of less than fifty
thousand.’’ 68 As of 1997, there were
approximately 87,453 governmental
jurisdictions in the United States.69 This
number includes 39,044 county
governments, municipalities, and
townships, of which 37,546
(approximately 96.2%) have
populations of fewer than 50,000, and of
which 1,498 have populations of 50,000
or more. Thus, we estimate the number
of small governmental jurisdictions
overall to be 84,098 or fewer.
64. We have included small
incumbent local exchange carriers in
this present RFA analysis. As noted
above, a ‘‘small business’’ under the
RFA is one that, inter alia, meets the
pertinent small business size standard
(e.g., a telephone communications
business having 1,500 or fewer
employees), and ‘‘is not dominant in its
field of operation.’’ 70 The SBA’s Office
of Advocacy contends that, for RFA
purposes, small incumbent local
exchange carriers are not dominant in
their field of operation because any such
dominance is not ‘‘national’’ in scope.71
64 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.’’
65 15 U.S.C. 632.
66 See SBA, Programs and Services, SBA
Pamphlet No. CO–0028, at page 40 (July 2002).
67 Independent Sector, The New Nonprofit
Almanac & Desk Reference (2002).
68 5 U.S.C. 601(5).
69 U.S. Census Bureau, Statistical Abstract of the
United States: 2000, Section 9, pages 299–300,
Tables 490 and 492.
70 15 U.S.C. 632.
71 Letter from Jere W. Glover, Chief Counsel for
Advocacy, SBA, to William E. Kennard, Chairman,
FCC (May 27, 1999). The Small Business Act
contains a definition of ‘‘small-business concern,’’
which the RFA incorporates into its own definition
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We have therefore included small
incumbent local exchange carriers in
this RFA analysis, although we
emphasize that this RFA action has no
effect on Commission analyses and
determinations in other, non-RFA
contexts.
65. Incumbent Local Exchange
Carriers (LECs). Neither the Commission
nor the SBA has developed a small
business size standard specifically for
incumbent local exchange services. The
appropriate size standard under SBA
rules is for the category Wired
Telecommunications Carriers. Under
that size standard, such a business is
small if it has 1,500 or fewer
employees.72 According to Commission
data,73 1,337 carriers have reported that
they are engaged in the provision of
incumbent local exchange services. Of
these 1,337 carriers, an estimated 1,032
have 1,500 or fewer employees and 305
have more than 1,500 employees.
Consequently, the Commission
estimates that most providers of
incumbent local exchange service are
small businesses that may be affected by
these rules.
66. Competitive Local Exchange
Carriers (CLECs), Competitive Access
Providers (CAPs), ‘‘Shared-Tenant
Service Providers,’’ and ‘‘Other Local
Service Providers.’’ Neither the
Commission nor the SBA has developed
a small business size standard
specifically for these service providers.
The appropriate size standard under
SBA rules is for the category Wired
Telecommunications Carriers. Under
that size standard, such a business is
small if it has 1,500 or fewer
employees.74 According to Commission
data,75 609 carriers have reported that
they are engaged in the provision of
either competitive access provider
services or competitive local exchange
carrier services. Of these 609 carriers, an
estimated 458 have 1,500 or fewer
employees and 151 have more than
1,500 employees. In addition, 16
carriers have reported that they are
‘‘Shared-Tenant Service Providers,’’ and
all 16 are estimated to have 1,500 or
of ‘‘small business.’’ See 15 U.S.C. 632(a) (Small
Business Act); 5 U.S.C. 601(3) (RFA). SBA
regulations interpret ‘‘small business concern’’ to
include the concept of dominance on a national
basis. See 13 CFR 121.102(b).
72 13 CFR 121.201, North American Industry
Classification System (NAICS) code 517110
(changed from 13310 in October 2002).
73 FCC, Wireline Competition Bureau, Industry
Analysis and Technology Division, ‘‘Trends in
Telephone Service’’ at Table 5.3, Page 5–5 (Aug.
2003) (hereinafter ‘‘Trends in Telephone Service’’).
This source uses data that are current as of
December 31, 2001.
74 13 CFR 121.201, NAICS code 517110 (changed
from 513310 in October 2002).
75 ‘‘Trends in Telephone Service’’ at Table 5.3.
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fewer employees. In addition, 35
carriers have reported that they are
‘‘Other Local Service Providers.’’ Of the
35, an estimated 34 have 1,500 or fewer
employees and one has more than 1,500
employees. Consequently, the
Commission estimates that most
providers of competitive local exchange
service, competitive access providers,
‘‘Shared-Tenant Service Providers,’’ and
‘‘Other Local Service Providers’’ are
small entities that may be affected by
these rules.
67. 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.76 According to Commission
data,77 133 carriers have reported that
they are engaged in the provision of
local resale services. Of these, an
estimated 127 have 1,500 or fewer
employees and six have more than 1,500
employees. Consequently, the
Commission estimates that the majority
of local resellers are small entities that
may be affected by these rules.
68. Toll Resellers. The SBA has
developed a small business size
standard for the category of
Telecommunications Resellers. Under
that size standard, such a business is
small if it has 1,500 or fewer
employees.78 According to Commission
data,79 625 carriers have reported that
they are engaged in the provision of toll
resale services. Of these, an estimated
590 have 1,500 or fewer employees and
35 have more than 1,500 employees.
Consequently, the Commission
estimates that the majority of toll
resellers are small entities that may be
affected by these rules.
69. Payphone Service Providers
(PSPs). Neither the Commission nor the
SBA has developed a small business
size standard specifically for payphone
services providers. The appropriate size
standard under SBA rules is for the
category Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees.80 According to
Commission data,81 761 carriers have
reported that they are engaged in the
provision of payphone services. Of
these, an estimated 757 have 1,500 or
fewer employees and four have more
than 1,500 employees. Consequently,
the Commission estimates that the
majority of payphone service providers
are small entities that may be affected
by these rules.
70. Interexchange Carriers (IXCs).
Neither the Commission nor the SBA
has developed a small business size
standard specifically for providers of
interexchange services. The appropriate
size standard under SBA rules is for the
category Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees.82 According to
Commission data,83 261 carriers have
reported that they are engaged in the
provision of interexchange service. Of
these, an estimated 223 have 1,500 or
fewer employees and 38 have more than
1,500 employees. Consequently, the
Commission estimates that the majority
of IXCs are small entities that may be
affected by these rules.
71. Operator Service Providers
(OSPs). Neither the Commission nor the
SBA has developed a small business
size standard specifically for operator
service providers. The appropriate size
standard under SBA rules is for the
category Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees.84 According to
Commission data,85 23 carriers have
reported that they are engaged in the
provision of operator services. Of these,
an estimated 22 have 1,500 or fewer
employees and one has more than 1,500
employees. Consequently, the
Commission estimates that the majority
of OSPs are small entities that may be
affected by these rules.
72. Prepaid Calling Card Providers.
Neither the Commission nor the SBA
has developed a small business size
standard specifically for prepaid calling
card providers. The appropriate size
standard under SBA rules is for the
category Telecommunications Resellers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.86 According to Commission
data,87 37 carriers have reported that
they are engaged in the provision of
prepaid calling cards. Of these, an
estimated 36 have 1,500 or fewer
employees and one has more than 1,500
employees. Consequently, the
Commission estimates that the majority
76 13 CFR 121.201, NAICS code 517310 (changed
from 513330 in October 2002).
77 ‘‘Trends in Telephone Service’’ at Table 5.3.
78 13 CFR 121.201, NAICS code 517310 (changed
to 513330 in October 2002).
79 ‘‘Trends in Telephone Service’’ at Table 5.3.
80 13 CFR 121.201, NAICS code 517110 (changed
from 513310 in October 2002).
81 ‘‘Trends in Telephone Service’’ at Table 5.3.
82 13 CFR 121.201, NAICS code 517110 (changed
from 513310 in October 2002).
83 ‘‘Trends in Telephone Service’’ at Table 5.3.
84 13 CFR 121.201, NAICS code 517110 (changed
from 513310 in October 2002).
85 ‘‘Trends in Telephone Service’’ at Table 5.3.
86 13 CFR 121.201, NAICS code 517310 (changed
from 513330 in October 2002).
87 ‘‘Trends in Telephone Service’’ at Table 5.3.
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of prepaid calling card providers are
small entities that may be affected by
these rules.
73. 800 and 800-Like Service
Subscribers.88 Neither the Commission
nor the SBA has developed a small
business size standard specifically for
800 and 800-like service (‘‘toll free’’)
subscribers. The appropriate size
standard under SBA rules is for the
category Telecommunications Resellers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.89 The most reliable source
of information regarding the number of
these service subscribers appears to be
data the Commission collects on the
800, 888, and 877 numbers in use.90
According to our data, at the end of
January, 1999, the number of 800
numbers assigned was 7,692,955; the
number of 888 numbers assigned was
7,706,393; and the number of 877
numbers assigned was 1,946,538. We do
not have data specifying the number of
these subscribers that are not
independently owned and operated or
have more than 1,500 employees, and
thus are unable at this time to estimate
with greater precision the number of toll
free subscribers that would qualify as
small businesses under the SBA size
standard. Consequently, we estimate
that there are 7,692,955 or fewer small
entity 800 subscribers; 7,706,393 or
fewer small entity 888 subscribers; and
1,946,538 or fewer small entity 877
subscribers.
74. International Service Providers.
The Commission has not developed a
small business size standard specifically
for providers of international service.
The appropriate size standards under
SBA rules are for the two broad
categories of Satellite
Telecommunications and Other
Telecommunications. Under both
categories, such a business is small if it
has $12.5 million or less in average
annual receipts.91 For the first category
of Satellite Telecommunications,
Census Bureau data for 1997 show that
there were a total of 324 firms that
operated for the entire year.92 Of this
total, 273 firms had annual receipts of
under $10 million, and an additional 24
88 We include all toll-free number subscribers in
this category, including those for 888 numbers.
89 13 CFR 121.201, NAICS code 517310 (changed
from 513330 in October 2002).
90 FCC, Common Carrier Bureau, Industry
Analysis Division, Study on Telephone Trends,
Tables 21.2, 21.3, and 21.4 (Feb. 19, 1999).
91 13 CFR 121.201, NAICS codes 517410 and
517910 (changed from 513340 and 513390 in
October 2002).
92 U.S. Census Bureau, 1997 Economic Census,
Subject Series: Information, ‘‘Establishment and
Firm Size (Including Legal Form of Organization),’’
Table 4, NAICS code 513340 (issued October 2000).
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firms had receipts of $10 million to
$24,999,999. Thus, the majority of
Satellite Telecommunications firms can
be considered small.
75. The second category—Other
Telecommunications—includes
‘‘establishments primarily engaged in
* * * providing satellite terminal
stations and associated facilities
operationally connected with one or
more terrestrial communications
systems and capable of transmitting
telecommunications to or receiving
telecommunications from satellite
systems.’’ 93 According to Census
Bureau data for 1997, there were 439
firms in this category that operated for
the entire year.94 Of this total, 424 firms
had annual receipts of $5 million to
$9,999,999 and an additional six firms
had annual receipts of $10 million to
$24,999,990. Thus, under this second
size standard, the majority of firms can
be considered small.
76. Wireless Service Providers. The
SBA has developed a small business
size standard for wireless firms within
the two broad economic census
categories of ‘‘Paging’’ 95 and ‘‘Cellular
and Other Wireless
Telecommunications.’’ 96 Under both
SBA categories, a wireless business is
small if it has 1,500 or fewer employees.
For the census category of Paging,
Census Bureau data for 1997 show that
there were 1,320 firms in this category,
total, that operated for the entire year.97
Of this total, 1,303 firms had
employment of 999 or fewer employees,
and an additional 17 firms had
employment of 1,000 employees or
more.98 Thus, under this category and
associated small business size standard,
the great majority of firms can be
considered small. For the census
category Cellular and Other Wireless
Telecommunications, Census Bureau
data for 1997 show that there were 977
93 Office of Management and Budget, North
American Industry Classification System, page 513
(1997) (NAICS code 513390, changed to 517910 in
October 2002).
94 U.S. Census Bureau, 1997 Economic Census,
Subject Series: Information, ‘‘Establishment and
Firm Size (Including Legal Form of Organization),’’
Table 4, NAICS code 513390 (issued October 2000).
95 13 CFR 121.201, NAICS code 513321 (changed
to 517211 in October 2002).
96 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
97 U.S. Census Bureau, 1997 Economic Census,
Subject Series: ‘‘Information,’’ Table 5, Employment
Size of Firms Subject to Federal Income Tax: 1997,
NAICS code 513321 (issued October 2000).
98 U.S. Census Bureau, 1997 Economic Census,
Subject Series: ‘‘Information,’’ Table 5, Employment
Size of Firms Subject to Federal Income Tax: 1997,
NAICS code 513321 (issued October 2000). The
census data do not provide a more precise estimate
of the number of firms that have employment of
1,500 or fewer employees; the largest category
provided is ‘‘Firms with 1000 employees or more.’’
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41977
firms in this category, total, that
operated for the entire year.99 Of this
total, 965 firms had employment of 999
or fewer employees, and an additional
12 firms had employment of 1,000
employees or more.100 Thus, under this
second category and size standard, the
great majority of firms can, again, be
considered small.
77. Internet Service Providers. The
SBA has developed a small business
size standard for Internet Service
Providers. This category comprises
establishments ‘‘primarily engaged in
providing direct access through
telecommunications networks to
computer-held information compiled or
published by others.’’ 101 Under the SBA
size standard, such a business is small
if it has average annual receipts of $21
million or less.102 According to Census
Bureau data for 1997, there were 2,751
firms in this category that operated for
the entire year.103 Of these, 2,659 firms
had annual receipts of under $10
million, and an additional 67 firms had
receipts of between $10 million and
$24,999,999.104 Thus, under this size
standard, the great majority of firms can
be considered small entities.
78. Cellular Licensees. The SBA has
developed a small business size
standard for wireless firms within the
broad economic census category
‘‘Cellular and Other Wireless
Telecommunications.’’ 105 Under this
SBA category, a wireless business is
small if it has 1,500 or fewer employees.
For the census category Cellular and
Other Wireless Telecommunications
firms, Census Bureau data for 1997
show that there were 977 firms in this
category, total, that operated for the
99 U.S. Census Bureau, 1997 Economic Census,
Subject Series: ‘‘Information,’’ Table 5, Employment
Size of Firms Subject to Federal Income Tax: 1997,
NAICS code 513322 (issued October 2000).
100 U.S. Census Bureau, 1997 Economic Census,
Subject Series: ‘‘Information,’’ Table 5, Employment
Size of Firms Subject to Federal Income Tax: 1997,
NAICS code 513322 (issued October 2000). The
census data do not provide a more precise estimate
of the number of firms that have employment of
1,500 or fewer employees; the largest category
provided is ‘‘Firms with 1000 employees or more.’’
101 Office of Management and Budget, North
American Industry Classification System, page 515
(1997). NAICS code 514191, ‘‘On-Line Information
Services’’ (changed to current name and to code
518111 in October 2002).
102 13 CFR 121.201, NAICS code 518111.
103 U.S. Census Bureau, 1997 Economic Census,
Subject Series: ‘‘Information,’’ Table 4, Receipts
Size of Firms Subject to Federal Income Tax: 1997,
NAICS code 514191 (issued October 2000).
104 U.S. Census Bureau, 1997 Economic Census,
Subject Series: ‘‘Information,’’ Table 4, Receipts
Size of Firms Subject to Federal Income Tax: 1997,
NAICS code 514191 (issued October 2000).
105 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
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entire year.106 Of this total, 965 firms
had employment of 999 or fewer
employees, and an additional 12 firms
had employment of 1,000 employees or
more.107 Thus, under this category and
size standard, the great majority of firms
can be considered small. According to
the most recent Trends in Telephone
Service data, 719 carriers reported that
they were engaged in the provision of
cellular service, personal
communications service, or specialized
mobile radio telephony services, which
are placed together in the data.108 We
have estimated that 294 of these are
small, under the SBA small business
size standard.109
79. Common Carrier Paging. The SBA
has developed a small business size
standard for wireless firms within the
broad economic census categories of
‘‘Cellular and Other Wireless
Telecommunications.’’ 110 Under this
SBA category, a wireless business is
small if it has 1,500 or fewer employees.
For the census category of Paging,
Census Bureau data for 1997 show that
there were 1,320 firms in this category,
total, that operated for the entire year.111
Of this total, 1,303 firms had
employment of 999 or fewer employees,
and an additional 17 firms had
employment of 1,000 employees or
more.112 Thus, under this category and
associated small business size standard,
the great majority of firms can be
considered small.
106 U.S. Census Bureau, 1997 Economic Census,
Subject Series: ‘‘Information,’’ Table 5, Employment
Size of Firms Subject to Federal Income Tax: 1997,
NAICS code 513322 (issued October 2000).
107 U.S. Census Bureau, 1997 Economic Census,
Subject Series: ‘‘Information,’’ Table 5, Employment
Size of Firms Subject to Federal Income Tax: 1997,
NAICS code 513322 (issued October 2000). The
census data do not provide a more precise estimate
of the number of firms that have employment of
1,500 or fewer employees; the largest category
provided is ‘‘Firms with 1000 employees or more.’’
108 FCC, Wireline Competition Bureau, Industry
Analysis and Technology Division, ‘‘Trends in
Telephone Service’’ at Table 5.3, page 5–5 (August
2003). This source uses data that are current as of
December 31, 2001.
109 FCC, Wireline Competition Bureau, Industry
Analysis and Technology Division, ‘‘Trends in
Telephone Service’’ at Table 5.3, page 5–5 (August
2003). This source uses data that are current as of
December 31, 2001.
110 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
111 U.S. Census Bureau, 1997 Economic Census,
Subject Series: ‘‘Information,’’ Table 5, Employment
Size of Firms Subject to Federal Income Tax: 1997,
NAICS code 513321 (issued October 2000).
112 U.S. Census Bureau, 1997 Economic Census,
Subject Series: ‘‘Information,’’ Table 5, Employment
Size of Firms Subject to Federal Income Tax: 1997,
NAICS code 513321 (issued October 2000). The
census data do not provide a more precise estimate
of the number of firms that have employment of
1,500 or fewer employees; the largest category
provided is ‘‘Firms with 1000 employees or more.’’
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80. In the Paging Second Report and
Order, the Commission adopted a size
standard for ‘‘small businesses’’ for
purposes of determining their eligibility
for special provisions such as bidding
credits and installment payments.113 A
small business is an entity that, together
with its affiliates and controlling
principals, has average gross revenues
not exceeding $15 million for the
preceding three years.114 The SBA has
approved this definition.115 An auction
of Metropolitan Economic Area (MEA)
licenses commenced on February 24,
2000, and closed on March 2, 2000. Of
the 2,499 licenses auctioned, 985 were
sold.116 Fifty-seven companies claiming
small business status won 440
licenses.117 An auction of MEA and
Economic Area (EA) licenses
commenced on October 30, 2001, and
closed on December 5, 2001. Of the
15,514 licenses auctioned, 5,323 were
sold.118 One hundred thirty-two
companies claiming small business
status purchased 3,724 licenses. A third
auction, consisting of 8,874 licenses in
each of 175 EAs and 1,328 licenses in
all but three of the 51 MEAs
commenced on May 13, 2003, and
closed on May 28, 2003. Seventy-seven
bidders claiming small or very small
business status won 2,093 licenses.119
Currently, there are approximately
74,000 Common Carrier Paging licenses.
According to the most recent Trends in
Telephone Service, 608 private and
common carriers reported that they
were engaged in the provision of either
paging or ‘‘other mobile’’ services.120 Of
these, we estimate that 589 are small,
113 Revision of Part 22 and Part 90 of the
Commission’s Rules to Facilitate Future
Development of Paging Systems, Second Report and
Order, 12 FCC Rcd 2732, 2811–2812, paras. 178–
181 (Paging Second Report and Order); see also
Revision of Part 22 and Part 90 of the Commission’s
Rules to Facilitate Future Development of Paging
Systems, Memorandum Opinion and Order on
Reconsideration, 14 FCC Rcd 10030, 10085–10088,
paras. 98–107 (1999).
114 Paging Second Report and Order, 12 FCC Rcd
at 2811, para. 179.
115 See Letter to Amy Zoslov, Chief, Auctions and
Industry Analysis Division, Wireless
Telecommunications Bureau, from Aida Alvarez,
Administrator, Small Business Administration,
dated December 2, 1998.
116 See ‘‘929 and 931 MHz Paging Auction
Closes,’’ Public Notice, 15 FCC Rcd 4858 (WTB
2000).
117 See ‘‘929 and 931 MHz Paging Auction
Closes,’’ Public Notice, 15 FCC Rcd 4858 (WTB
2000).
118 See ‘‘Lower and Upper Paging Band Auction
Closes,’’ Public Notice, 16 FCC Rcd 21821 (WTB
2002).
119 See ‘‘Lower and Upper Paging Bands Auction
Closes,’’ Public Notice, 18 FCC Rcd 11154 (WTB
2003).
120 See Trends in Telephone Service, Industry
Analysis Division, Wireline Competition Bureau,
Table 5.3 (Number of Telecommunications Service
Providers that are Small Businesses) (May 2002).
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under the SBA-approved small business
size standard.121 We estimate that the
majority of common carrier paging
providers would qualify as small
entities under the SBA definition.
81. Wireless Communications
Services. This service can be used for
fixed, mobile, radiolocation, and digital
audio broadcasting satellite uses. The
Commission defined ‘‘small business’’
for the wireless communications
services (WCS) auction as an entity with
average gross revenues of $40 million
for each of the three preceding years,
and a ‘‘very small business’’ as an entity
with average gross revenues of $15
million for each of the three preceding
years.122 The SBA has approved these
definitions.123 The Commission
auctioned geographic area licenses in
the WCS service. In the auction, which
commenced on April 15, 1997 and
closed on April 25, 1997, there were
seven bidders that won 31 licenses that
qualified as very small business entities,
and one bidder that won one license
that qualified as a small business entity.
An auction for one license in the 1670–
1674 MHz band commenced on April
30, 2003 and closed the same day. One
license was awarded. The winning
bidder was not a small entity.
82. Wireless Telephony. Wireless
telephony includes cellular, personal
communications services, and
specialized mobile radio telephony
carriers. The SBA has developed a small
business size standard for ‘‘Cellular and
Other Wireless Telecommunications’’
services.124 Under the SBA small
business size standard, a business is
small if it has 1,500 or fewer
employees.125 According to the most
recent Trends in Telephone Service
data, 719 carriers reported that they
were engaged in wireless telephony.126
We have estimated that 294 of these are
small under the SBA small business size
standard.
83. Broadband Personal
Communications Service. The
121 13
CFR 121.201, NAICS code 517211.
of the Commission’s Rules to
Establish Part 27, the Wireless Communications
Service (WCS), Report and Order, 12 FCC Rcd
10785, 10879, para. 194 (1997).
123 See Letter to Amy Zoslov, Chief, Auctions and
Industry Analysis Division, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez,
Administrator, Small Business Administration,
dated December 2, 1998.
124 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
125 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
126 FCC, Wireline Competition Bureau, Industry
Analysis and Technology Division, ‘‘Trends in
Telephone Service’’ at Table 5.3, page 5–5 (August
2003). This source uses data that are current as of
December 31, 2001.
122 Amendment
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
broadband personal communications
services (PCS) spectrum is divided into
six frequency blocks designated A
through F, and the Commission has held
auctions for each block. The
Commission has created a small
business size standard for Blocks C and
F as an entity that has average gross
revenues of less than $40 million in the
three previous calendar years.127 For
Block F, an additional small business
size standard for ‘‘very small business’’
was added and is defined as an entity
that, together with its affiliates, has
average gross revenues of not more than
$15 million for the preceding three
calendar years.128 These small business
size standards, in the context of
broadband PCS auctions, have been
approved by the SBA.129 No small
businesses within the SBA-approved
small business size standards bid
successfully for licenses in Blocks A
and B. There were 90 winning bidders
that qualified as small entities in the
Block C auctions. A total of 93 ‘‘small’’
and ‘‘very small’’ business bidders won
approximately 40 percent of the 1,479
licenses for Blocks D, E, and F.130 On
March 23, 1999, the Commission
reauctioned 155 C, D, E, and F Block
licenses; there were 113 small business
winning bidders.131
84. On January 26, 2001, the
Commission completed the auction of
422 C and F Broadband PCS licenses in
Auction No. 35. Of the 35 winning
bidders in this auction, 29 qualified as
‘‘small’’ or ‘‘very small’’ businesses.132
Subsequent events, concerning Auction
35, including judicial and agency
determinations, resulted in a total of 163
C and F Block licenses being available
for grant.
85. Narrowband Personal
Communications Services. The
127 See Amendment of Parts 20 and 24 of the
Commission’s Rules—Broadband PCS Competitive
Bidding and the Commercial Mobile Radio Service
Spectrum Cap, Report and Order, 11 FCC Rcd 7824,
7850–7852, paras. 57–60 (1996); see also 47 CFR
24.720(b).
128 See Amendment of Parts 20 and 24 of the
Commission’s Rules—Broadband PCS Competitive
Bidding and the Commercial Mobile Radio Service
Spectrum Cap, Report and Order, 11 FCC Rcd 7824,
7852, para. 60.
129 See Letter to Amy Zoslov, Chief, Auctions and
Industry Analysis Division, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez,
Administrator, Small Business Administration,
dated December 2, 1998.
130 FCC News, ‘‘Broadband PCS, D, E and F Block
Auction Closes,’’ No. 71744 (released January 14,
1997).
131 See ‘‘C, D, E, and F Block Broadband PCS
Auction Closes,’’ Public Notice, 14 FCC Rcd 6688
(WTB 1999).
132 See ‘‘C and F Block Broadband PCS Auction
Closes; Winning Bidders Announced,’’ Public
Notice, 16 FCC Rcd 2339 (2001).
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Commission held an auction for
Narrowband PCS licenses that
commenced on July 25, 1994, and
closed on July 29, 1994. A second
auction commenced on October 26,
1994 and closed on November 8, 1994.
For purposes of the first two
Narrowband PCS auctions, ‘‘small
businesses’’ were entities with average
gross revenues for the prior three
calendar years of $40 million or less.133
Through these auctions, the
Commission awarded a total of 41
licenses, 11 of which were obtained by
four small businesses.134 To ensure
meaningful participation by small
business entities in future auctions, the
Commission adopted a two-tiered small
business size standard in the
Narrowband PCS Second Report and
Order.135 A ‘‘small business’’ is an
entity that, together with affiliates and
controlling interests, has average gross
revenues for the three preceding years of
not more than $40 million.136 A ‘‘very
small business’’ is an entity that,
together with affiliates and controlling
interests, has average gross revenues for
the three preceding years of not more
than $15 million.137 The SBA has
approved these small business size
standards.138 A third auction
commenced on October 3, 2001 and
closed on October 16, 2001. Here, five
bidders won 317 (Metropolitan Trading
Areas and nationwide) licenses.139
Three of these claimed status as a small
133 Implementation of Section 309(j) of the
Communications Act—Competitive Bidding
Narrowband PCS, Third Memorandum Opinion and
Order and Further Notice of Proposed Rulemaking,
10 FCC Rcd 175, 196, para. 46 (1994).
134 See ‘‘Announcing the High Bidders in the
Auction of ten Nationwide Narrowband PCS
Licenses, Winning Bids Total $617,006,674,’’ Public
Notice, PNWL 94–004 (released Aug. 2, 1994);
‘‘Announcing the High Bidders in the Auction of 30
Regional Narrowband PCS Licenses; Winning Bids
Total $490,901,787,’’ Public Notice, PNWL 94–27
(released Nov. 9, 1994).
135 Amendment of the Commission’s Rules to
Establish New Personal Communications Services,
Narrowband PCS, Second Report and Order and
Second Further Notice of Proposed Rule Making, 15
FCC Rcd 10456, 10476, para. 40 (2000).
136 Amendment of the Commission’s Rules to
Establish New Personal Communications Services,
Narrowband PCS, Second Report and Order and
Second Further Notice of Proposed Rule Making, 15
FCC Rcd 10456, 10476, para. 40 (2000).
137 Amendment of the Commission’s Rules to
Establish New Personal Communications Services,
Narrowband PCS, Second Report and Order and
Second Further Notice of Proposed Rule Making, 15
FCC Rcd 10456, 10476, para. 40 (2000).
138 See Letter to Amy Zoslov, Chief, Auctions and
Industry Analysis Division, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez,
Administrator, Small Business Administration,
dated December 2, 1998.
139 See ‘‘Narrowband PCS Auction Closes,’’
Public Notice, 16 FCC Rcd 18663 (WTB 2001).
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41979
or very small entity and won 311
licenses.
86. Lower 700 MHz Band Licenses.
We adopted criteria for defining three
groups of small businesses for purposes
of determining their eligibility for
special provisions such as bidding
credits.140 We have defined a ‘‘small
business’’ as an entity that, together
with its affiliates and controlling
principals, has average gross revenues
not exceeding $40 million for the
preceding three years.141 A ‘‘very small
business’’ is defined as an entity that,
together with its affiliates and
controlling principals, has average gross
revenues that are not more than $15
million for the preceding three years.142
Additionally, the lower 700 MHz
Service has a third category of small
business status that may be claimed for
Metropolitan/Rural Service Area (MSA/
RSA) licenses. The third category is
‘‘entrepreneur,’’ which is defined as an
entity that, together with its affiliates
and controlling principals, has average
gross revenues that are not more than $3
million for the preceding three years.143
The SBA has approved these small size
standards.144 An auction of 740 licenses
(one license in each of the 734 MSAs/
RSAs and one license in each of the six
Economic Area Groupings (EAGs))
commenced on August 27, 2002, and
closed on September 18, 2002. Of the
740 licenses available for auction, 484
licenses were sold to 102 winning
bidders. Seventy-two of the winning
bidders claimed small business, very
small business or entrepreneur status
and won a total of 329 licenses.145 A
second auction commenced on May 28,
2003, and closed on June 13, 2003, and
included 256 licenses: 5 EAG licenses
and 476 Cellular Market Area
licenses.146 Seventeen winning bidders
140 See Reallocation and Service Rules for the
698–746 MHz Spectrum Band (Television Channels
52–59), Report and Order, 17 FCC Rcd 1022 (2002).
141 See Reallocation and Service Rules for the
698–746 MHz Spectrum Band (Television Channels
52–59), Report and Order, 17 FCC Rcd 1022, 1087–
88, para. 172 (2002).
142 See Reallocation and Service Rules for the
698–746 MHz Spectrum Band (Television Channels
52–59), Report and Order, 17 FCC Rcd 1022, 1087–
88, para. 172 (2002).
143 See Reallocation and Service Rules for the
698–746 MHz Spectrum Band (Television Channels
52–59), Report and Order, 17 FCC Rcd 1022, 1088,
para. 173 (2002).
144 See Letter to Thomas Sugrue, Chief, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez,
Administrator, Small Business Administration,
dated August 10, 1999.
145 See ‘‘Lower 700 MHz Band Auction Closes,’’
Public Notice, 17 FCC Rcd 17272 (WTB 2002).
146 See ‘‘Lower 700 MHz Band Auction Closes,’’
Public Notice, 18 FCC Rcd 11873 (WTB 2003).
147 See ‘‘Lower 700 MHz Band Auction Closes,’’
Public Notice, 18 FCC Rcd 11873 (WTB 2003).
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claimed small or very small business
status and won 60 licenses, and nine
winning bidders claimed entrepreneur
status and won 154 licenses.147
87. Upper 700 MHz Band Licenses.
The Commission released a Report and
Order, authorizing service in the upper
700 MHz band.148 This auction,
previously scheduled for January 13,
2003, has been postponed.149
88. 700 MHz Guard Band Licenses. In
the 700 MHz Guard Band Order, we
adopted size standards for ‘‘small
businesses’’ and ‘‘very small
businesses’’ for purposes of determining
their eligibility for special provisions
such as bidding credits and installment
payments.150 A small business in this
service is an entity that, together with
its affiliates and controlling principals,
has average gross revenues not
exceeding $40 million for the preceding
three years.151 Additionally, a very
small business is an entity that, together
with its affiliates and controlling
principals, has average gross revenues
that are not more than $15 million for
the preceding three years.152 SBA
approval of these definitions is not
required.153 An auction of 52 Major
Economic Area (MEA) licenses
commenced on September 6, 2000, and
closed on September 21, 2000.154 Of the
104 licenses auctioned, 96 licenses were
sold to nine bidders. Five of these
bidders were small businesses that won
a total of 26 licenses. A second auction
of 700 MHz Guard Band licenses
commenced on February 13, 2001, and
closed on February 21, 2001. All eight
148 Service Rules for the 746–764 and 776–794
MHz Bands, and Revisions to Part 27 of the
Commission’s Rules, Second Memorandum
Opinion and Order, 16 FCC Rcd 1239 (2001).
149 See ‘‘Auction of Licenses for 747–762 and
777–792 MHz Bands (Auction No. 31) Is
Rescheduled,’’ Public Notice, 16 FCC Rcd 13079
(WTB 2003).
150 See Service Rules for the 746–764 MHz Bands,
and Revisions to Part 27 of the Commission’s Rules,
Second Report and Order, 15 FCC Rcd 5299 (2000).
151 See Service Rules for the 746–764 MHz Bands,
and Revisions to Part 27 of the Commission’s Rules,
Second Report and Order, 15 FCC Rcd 5299, 5343,
para. 108 (2000).
152 See Service Rules for the 746–764 MHz Bands,
and Revisions to Part 27 of the Commission’s Rules,
Second Report and Order, 15 FCC Rcd 5299, 5343,
para. 108 (2000).
153 See Service Rules for the 746–764 MHz Bands,
and Revisions to Part 27 of the Commission’s Rules,
Second Report and Order, 15 FCC Rcd 5299, 5343,
para. 108 n.246 (for the 746–764 MHz and 776–794
MHz bands, the Commission is exempt from 15
U.S.C. 632, which requires Federal agencies to
obtain SBA approval before adopting small business
size standards).
154 See ‘‘700 MHz Guard Bands Auction Closes:
Winning Bidders Announced,’’ Public Notice, 15
FCC Rcd 18026 (2000).
155 See ‘‘700 MHz Guard Bands Auction Closes:
Winning Bidders Announced,’’ Public Notice, 16
FCC Rcd 4590 (WTB 2001).
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of the licenses auctioned were sold to
three bidders. One of these bidders was
a small business that won a total of two
licenses.155
89. Specialized Mobile Radio. The
Commission awards ‘‘small entity’’
bidding credits in auctions for
Specialized Mobile Radio (SMR)
geographic area licenses in the 800 MHz
and 900 MHz bands to firms that had
revenues of no more than $15 million in
each of the three previous calendar
years.156 The Commission awards ‘‘very
small entity’’ bidding credits to firms
that had revenues of no more than $3
million in each of the three previous
calendar years.157 The SBA has
approved these small business size
standards for the 900 MHz Service.158
The Commission has held auctions for
geographic area licenses in the 800 MHz
and 900 MHz bands. The 900 MHz SMR
auction began on December 5, 1995, and
closed on April 15, 1996. Sixty bidders
claiming that they qualified as small
businesses under the $15 million size
standard won 263 geographic area
licenses in the 900 MHz SMR band. The
800 MHz SMR auction for the upper 200
channels began on October 28, 1997,
and was completed on December 8,
1997. Ten bidders claiming that they
qualified as small businesses under the
$15 million size standard won 38
geographic area licenses for the upper
200 channels in the 800 MHz SMR
band.159 A second auction for the 800
MHz band was held on January 10, 2002
and closed on January 17, 2002 and
included 23 BEA licenses. One bidder
claiming small business status won five
licenses.160
90. The auction of the 1,053 800 MHz
SMR geographic area licenses for the
General Category channels began on
August 16, 2000, and was completed on
September 1, 2000. Eleven bidders won
108 geographic area licenses for the
General Category channels in the 800
MHz SMR band qualified as small
businesses under the $15 million size
standard.161 In an auction completed on
CFR 90.814(b)(1).
CFR 90.814(b)(1).
158 See Letter to Thomas Sugrue, Chief, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez,
Administrator, Small Business Administration,
dated August 10, 1999. We note that, although a
request was also sent to the SBA requesting
approval for the small business size standard for
800 MHz, approval is still pending.
159 See ‘‘Correction to Public Notice DA 96–586
‘FCC Announces Winning Bidders in the Auction
of 1020 Licenses to Provide 900 MHz SMR in Major
Trading Areas,’ ’’ Public Notice, 18 FCC Rcd 18367
(WTB 1996).
160 See ‘‘Multi-Radio Service Auction Closes,’’
Public Notice, 17 FCC Rcd 1446 (WTB 2002).
161 See, ‘‘800 MHz Specialized Mobile Radio
(SMR) Service General Category (851–854 MHz) and
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156 47
157 47
Frm 00044
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December 5, 2000, a total of 2,800
Economic Area licenses in the lower 80
channels of the 800 MHz SMR service
were sold.162 Of the 22 winning bidders,
19 claimed small business status and
won 129 licenses. Thus, combining all
three auctions, 40 winning bidders for
geographic licenses in the 800 MHz
SMR band claimed status as small
business.
91. In addition, there are numerous
incumbent site-by-site SMR licensees
and licensees with extended
implementation authorizations in the
800 and 900 MHz bands. We do not
know how many firms provide 800 MHz
or 900 MHz geographic area SMR
pursuant to extended implementation
authorizations, nor how many of these
providers have annual revenues of no
more than $15 million. One firm has
over $15 million in revenues. We
assume, for purposes of this analysis,
that all of the remaining existing
extended implementation
authorizations are held by small
entities, as that small business size
standard is approved by the SBA.
92. 220 MHz Radio Service—Phase I
Licensees. The 220 MHz service has
both Phase I and Phase II licenses. Phase
I licensing was conducted by lotteries in
1992 and 1993. There are approximately
1,515 such non-nationwide licensees
and four nationwide licensees currently
authorized to operate in the 220 MHz
band. The Commission has not
developed a definition of small entities
specifically applicable to such
incumbent 220 MHz Phase I licensees.
To estimate the number of such
licensees that are small businesses, we
apply the small business size standard
under the SBA rules applicable to
‘‘Cellular and Other Wireless
Telecommunications’’ companies. This
category provides that a small business
is a wireless company employing no
more than 1,500 persons.163 According
to the Census Bureau data for 1997, only
twelve firms out of a total of 1,238 such
firms that operated for the entire year in
1997, had 1,000 or more employees.164
If this general ratio continues in the
context of Phase I 220 MHz licensees,
the Commission estimates that nearly all
such licensees are small businesses
Upper Band (861–865 MHz) Auction Closes;
Winning Bidders Announced,’’ Public Notice, 15
FCC Rcd 17162 (2000).
162 See, ‘‘800 MHz SMR Service Lower 80
Channels Auction Closes; Winning Bidders
Announced,’’ Public Notice, 16 FCC Rcd 1736
(2000).
163 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
164 U.S. Census Bureau, 1997 Economic Census,
Subject Series: Information, ‘‘Establishment and
Firm Size (Including Legal Form of Organization),’’
Table 5, NAICS code 513322 (October 2000).
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under the SBA’s small business
standard.
93. 220 MHz Radio Service—Phase II
Licensees. The 220 MHz service has
both Phase I and Phase II licenses. The
Phase II 220 MHz service is a new
service, and is subject to spectrum
auctions. In the 220 MHz Third Report
and Order, we adopted a small business
size standard for defining ‘‘small’’ and
‘‘very small’’ businesses for purposes of
determining their eligibility for special
provisions such as bidding credits and
installment payments.165 This small
business standard indicates that a
‘‘small business’’ is an entity that,
together with its affiliates and
controlling principals, has average gross
revenues not exceeding $15 million for
the preceding three years.166 A ‘‘very
small business’’ is defined as an entity
that, together with its affiliates and
controlling principals, has average gross
revenues that do not exceed $3 million
for the preceding three years.167 The
SBA has approved these small size
standards.168 Auctions of Phase II
licenses commenced on September 15,
1998, and closed on October 22,
1998.169 In the first auction, 908
licenses were auctioned in three
different-sized geographic areas: Three
nationwide licenses, 30 Regional
Economic Area Group (EAG) Licenses,
and 875 Economic Area (EA) Licenses.
Of the 908 licenses auctioned, 693 were
sold.170 Thirty-nine small businesses
won 373 licenses in the first 220 MHz
auction. A second auction included 225
licenses: 216 EA licenses and 9 EAG
licenses. Fourteen companies claiming
small business status won 158
licenses.171 A third auction included
four licenses: 2 BEA licenses and 2 EAG
licenses in the 220 MHz Service. No
small or very small business won any of
these licenses.172
165 Amendment of Part 90 of the Commission’s
Rules to Provide For the Use of the 220–222 MHz
Band by the Private Land Mobile Radio Service,
Third Report and Order, 12 FCC Rcd 10943, 11068–
70, paras. 291–295 (1997).
166 Id. at 11068, paras. 291.
167 Id.
168 See Letter to Daniel Phythyon, Chief, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez,
Administrator, Small Business Administration,
dated January 6, 1998.
169 See generally ‘‘220 MHz Service Auction
Closes,’’ Public Notice, 14 FCC Rcd 605 (WTB
1998).
170 See ‘‘FCC Announces It is Prepared to Grant
654 Phase II 220 MHz Licenses After Final Payment
is Made,’’ Public Notice, 14 FCC Rcd 1085 (WTB
1999).
171 See ‘‘Phase II 220 MHz Service Spectrum
Auction Closes,’’ Public Notice, 14 FCC Rcd 11218
(WTB 1999).
172 See ‘‘Multi-Radio Service Auction Closes,’’
Public Notice, 17 FCC Rcd 1446 (WTB 2002).
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94. Private Land Mobile Radio
(PLMR). PLMR systems serve an
essential role in a range of industrial,
business, land transportation, and
public safety activities. These radios are
used by companies of all sizes operating
in all U.S. business categories, and are
often used in support of the licensee’s
primary (non-telecommunications)
business operations. For the purpose of
determining whether a licensee of a
PLMR system is a small business as
defined by the SBA, we could use the
definition for ‘‘Cellular and Other
Wireless Telecommunications.’’ This
definition provides that a small entity is
any such entity employing no more than
1,500 persons.173 The Commission does
not require PLMR licensees to disclose
information about number of
employees, so the Commission does not
have information that could be used to
determine how many PLMR licensees
constitute small entities under this
definition. Moreover, because PMLR
licensees generally are not in the
business of providing cellular or other
wireless telecommunications services
but instead use the licensed facilities in
support of other business activities, we
are not certain that the Cellular and
Other Wireless Telecommunications
category is appropriate for determining
how many PLMR licensees are small
entities for this analysis. Rather, it may
be more appropriate to assess PLMR
licensees under the standards applied to
the particular industry subsector to
which the licensee belongs.174
95. The Commission’s 1994 Annual
Report on PLMRs 175 indicates that at
the end of fiscal year 1994, there were
1,087,267 licensees operating
12,481,989 transmitters in the PLMR
bands below 512 MHz. Because any
entity engaged in a commercial activity
is eligible to hold a PLMR license, the
revised rules in this context could
potentially impact every small business
in the United States.
96. Fixed Microwave Services. Fixed
microwave services include common
carrier,176 private operational-fixed,177
and broadcast auxiliary radio
13 CFR 121.201, NAICS code 517212.
generally 13 CFR 121.201.
175 Federal Communications Commission, 60th
Annual Report, Fiscal Year 1994, at para. 116.
176 See 47 CFR 101 et seq. (formerly, part 21 of
the Commission’s rules) for common carrier fixed
microwave services (except Multipoint Distribution
Service).
177 Persons eligible under parts 80 and 90 of the
Commission’s rules can use Private OperationalFixed Microwave services. See 47 CFR parts 80 and
90. Stations in this service are called operationalfixed to distinguish them from common carrier and
public fixed stations. Only the licensee may use the
operational-fixed station, and only for
communications related to the licensee’s
commercial, industrial, or safety operations.
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173 See
174 See
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services.178 At present, there are
approximately 22,015 common carrier
fixed licensees and 61,670 private
operational-fixed licensees and
broadcast auxiliary radio licensees in
the microwave services. The
Commission has not created a size
standard for a small business
specifically with respect to fixed
microwave services. For purposes of
this analysis, the Commission uses the
SBA small business size standard for the
category ‘‘Cellular and Other
Telecommunications,’’ which is 1,500
or fewer employees.179 The Commission
does not have data specifying the
number of these licensees that have
more than 1,500 employees, and thus
are unable at this time to estimate with
greater precision the number of fixed
microwave service licensees that would
qualify as small business concerns
under the SBA’s small business size
standard. Consequently, the
Commission estimates that there are up
to 22,015 common carrier fixed
licensees and up to 61,670 private
operational-fixed licensees and
broadcast auxiliary radio licensees in
the microwave services that may be
small and may be affected by the rules
and policies proposed herein. We noted,
however, that the common carrier
microwave fixed licensee category
includes some large entities.
97. 39 GHz Service. The Commission
created a special small business size
standard for 39 GHz licenses—an entity
that has average gross revenues of $40
million or less in the three previous
calendar years.180 An additional size
standard for ‘‘very small business’’ is:
An entity that, together with affiliates,
has average gross revenues of not more
than $15 million for the preceding three
calendar years.181 The SBA has
approved these small business size
standards.182 The auction of the 2,173
178 Auxiliary Microwave Service is governed by
part 74 of Title 47 of the Commission’s rules. See
47 CFR part 74. This service is available to licensees
of broadcast stations and to broadcast and cable
network entities. Broadcast auxiliary microwave
stations are used for relaying broadcast television
signals from the studio to the transmitter, or
between two points such as a main studio and an
auxiliary studio. The service also includes mobile
television pickups, which relay signals from a
remote location back to the studio.
179 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
180 See Amendment of the Commission’s Rules
Regarding the 37.0–38.6 GHz and 38.6–40.0 GHz
Bands, ET Docket No. 95–183, Report and Order,
12 FCC Rcd 18600 (1997), 63 FR 6079 (Feb. 6,
1998).
182 Id.
182 See Letter to Kathleen O’Brien Ham, Chief,
Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau, FCC, from Aida
Alvarez, Administrator, SBA (Feb. 4, 1998) (VoIP);
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39 GHz licenses began on April 12, 2000
and closed on May 8, 2000. The 18
bidders who claimed small business
status won 849 licenses. Consequently,
the Commission estimates that 18 or
fewer 39 GHz licensees are small
entities that may be affected by the rules
and polices herein.
98. Local Multipoint Distribution
Service. Local Multipoint Distribution
Service (LMDS) is a fixed broadband
point-to-multipoint microwave service
that provides for two-way video
telecommunications.183 The auction of
the 986 Local Multipoint Distribution
Service (LMDS) licenses began on
February 18, 1998 and closed on March
25, 1998. The Commission established a
small business size standard for LMDS
licenses as an entity that has average
gross revenues of less than $40 million
in the three previous calendar years.184
An additional small business size
standard for ‘‘very small business’’ was
added as an entity that, together with its
affiliates, has average gross revenues of
not more than $15 million for the
preceding three calendar years.185 The
SBA has approved these small business
size standards in the context of LMDS
auctions.186 There were 93 winning
bidders that qualified as small entities
in the LMDS auctions. A total of 93
small and very small business bidders
won approximately 277 A Block
licenses and 387 B Block licenses. On
March 27, 1999, the Commission reauctioned 161 licenses; there were 32
See Letter to Margaret Wiener, Chief, Auctions and
Industry Analysis Division, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Hector Barreto,
Administrator, Small Business Administration,
dated January 18, 2002 (WTB).
183 See Rulemaking to Amend Parts 1, 2, 21, 25,
of the Commission’s Rules to Redesignate the 27.5–
29.5 GHz Frequency Band, Reallocate the 29.5–30.5
Frequency Band, to Establish Rules and Policies for
Local Multipoint Distribution Service and for Fixed
Satellite Services, Second Report and Order, Order
on Reconsideration, and Fifth Notice of Proposed
Rule Making, 12 FCC Rcd 12545, 12689–90, para.
348 (1997).
184 See Rulemaking to Amend Parts 1, 2, 21, 25,
of the Commission’s Rules to Redesignate the 27.5–
29.5 GHz Frequency Band, Reallocate the 29.5–30.5
Frequency Band, to Establish Rules and Policies for
Local Multipoint Distribution Service and for Fixed
Satellite Services, Second Report and Order, Order
on Reconsideration, and Fifth Notice of Proposed
Rule Making, 12 FCC Rcd 12545, 12689–90, para.
348 (1997).
185 See Rulemaking to Amend Parts 1, 2, 21, 25,
of the Commission’s Rules to Redesignate the 27.5–
29.5 GHz Frequency Band, Reallocate the 29.5–30.5
Frequency Band, to Establish Rules and Policies for
Local Multipoint Distribution Service and for Fixed
Satellite Services, Second Report and Order, Order
on Reconsideration, and Fifth Notice of Proposed
Rule Making, 12 FCC Rcd 12545, 12689–90, para.
348 (1997).
186 See Letter to Dan Phythyon, Chief, Wireless
Telecommunications Bureau, FCC, from Aida
Alvarez, Administrator, SBA (Jan. 6, 1998).
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small and very small business winning
that won 119 licenses.
99. 218–219 MHz Service. The first
auction of 218–219 MHz (previously
referred to as the Interactive and Video
Data Service or IVDS) spectrum resulted
in 178 entities winning licenses for 594
Metropolitan Statistical Areas
(MSAs).187 Of the 594 licenses, 567
were won by 167 entities qualifying as
a small business. For that auction, we
defined a small business as an entity
that, together with its affiliates, has no
more than a $6 million net worth and,
after federal income taxes (excluding
any carry over losses), has no more than
$2 million in annual profits each year
for the previous two years.188 In the
218–219 MHz Report and Order and
Memorandum Opinion and Order, we
defined a small business as an entity
that, together with its affiliates and
persons or entities that hold interests in
such an entity and their affiliates, has
average annual gross revenues not
exceeding $15 million for the preceding
three years.189 A very small business is
defined as an entity that, together with
its affiliates and persons or entities that
hold interests in such an entity and its
affiliates, has average annual gross
revenues not exceeding $3 million for
the preceding three years.190 The SBA
has approved of these definitions.191 At
this time, we cannot estimate the
number of licenses that will be won by
entities qualifying as small or very small
businesses under our rules in future
auctions of 218–219 MHz spectrum.
Given the success of small businesses in
previous auction, and the prevalence of
small businesses in the subscription
television services and message
communications industries, we assume
for purposes of this analysis that in
future auctions, many, and perhaps all,
of the licenses may be awarded to small
businesses.
100. Location and Monitoring Service
(LMS). Multilateration LMS systems use
non-voice radio techniques to determine
the location and status of mobile radio
units. For purposes of auctioning LMS
licenses, the Commission has defined
187 See ‘‘Interactive Video and Data Service
(IVDS) Applications Accepted for Filing,’’ Public
Notice, 9 FCC Rcd 6227 (1994).
188 Implementation of Section 309(j) of the
Communications Act—Competitive Bidding, Fourth
Report and Order, 9 FCC Rcd 2330 (1994).
189 Amendment of Part 95 of the Commission’s
Rules to Provide Regulatory Flexibility in the 218–
219 MHz Service, Report and Order and
Memorandum Opinion and Order, 15 FCC Rcd 1497
(1999).
190 Id.
191 See Letter to Daniel Phythyon, Chief, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez,
Administrator, Small Business Administration,
dated January 6, 1998.
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‘‘small business’’ as an entity that,
together with controlling interests and
affiliates, has average annual gross
revenues for the preceding three years
not exceeding $15 million.192 A ‘‘very
small business’’ is defined as an entity
that, together with controlling interests
and affiliates, has average annual gross
revenues for the preceding three years
not exceeding $3 million.193 These
definitions have been approved by the
SBA.194 An auction for LMS licenses
commenced on February 23, 1999, and
closed on March 5, 1999. Of the 528
licenses auctioned, 289 licenses were
sold to four small businesses. We cannot
accurately predict the number of
remaining licenses that could be
awarded to small entities in future LMS
auctions.
101. Rural Radiotelephone Service.
The Commission has not adopted a size
standard for small businesses specific to
the Rural Radiotelephone Service.195 A
significant subset of the Rural
Radiotelephone Service is the Basic
Exchange Telephone Radio System
(BETRS).196 The Commission uses the
SBA’s small business size standard
applicable to ‘‘Cellular and Other
Wireless Telecommunications,’’ i.e., an
entity employing no more than 1,500
persons.197 There are approximately
1,000 licensees in the Rural
Radiotelephone Service, and the
Commission estimates that there are
1,000 or fewer small entity licensees in
the Rural Radiotelephone Service that
may be affected by the rules and
policies proposed herein.
102. Air-Ground Radiotelephone
Service. The Commission has not
adopted a small business size standard
specific to the Air-Ground
Radiotelephone Service.198 We will use
SBA’s small business size standard
applicable to ‘‘Cellular and Other
Wireless Telecommunications,’’ i.e., an
192 Amendment of Part 90 of the Commission’s
Rules to Adopt Regulations for Automatic Vehicle
Monitoring Systems, Second Report and Order, 13
FCC Rcd 15182, 15192 para. 20 (1998); see also 47
CFR 90.1103.
193 Amendment of Part 90 of the Commission’s
Rules to Adopt Regulations for Automatic Vehicle
Monitoring Systems, Second Report and Order, 13
FCC Rcd at 15192, para. 20; see also 47 CFR
90.1103.
194 See Letter to Thomas Sugrue, Chief, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez,
Administrator, Small Business Administration,
dated February 22, 1999.
195 The service is defined in section 22.99 of the
Commission’s Rules, 47 CFR 22.99.
196 BETRS is defined in sections 22.757 and
22.759 of the Commission’s Rules, 47 CFR 22.757
and 22.759.
197 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
198 The service is defined in section 22.99 of the
Commission’s Rules, 47 CFR 22.99.
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entity employing no more than 1,500
persons.199 There are approximately 100
licensees in the Air-Ground
Radiotelephone Service, and we
estimate that almost all of them qualify
as small under the SBA small business
size standard.
103. Aviation and Marine Radio
Services. Small businesses in the
aviation and marine radio services use
a very high frequency (VHF) marine or
aircraft radio and, as appropriate, an
emergency position-indicating radio
beacon (and/or radar) or an emergency
locator transmitter. The Commission has
not developed a small business size
standard specifically applicable to these
small businesses. For purposes of this
analysis, the Commission uses the SBA
small business size standard for the
category ‘‘Cellular and Other
Telecommunications,’’ which is 1,500
or fewer employees.200 Most applicants
for recreational licenses are individuals.
Approximately 581,000 ship station
licensees and 131,000 aircraft station
licensees operate domestically and are
not subject to the radio carriage
requirements of any statute or treaty.
For purposes of our evaluations in this
analysis, we estimate that there are up
to approximately 712,000 licensees that
are small businesses (or individuals)
under the SBA standard. In addition,
between December 3, 1998 and
December 14, 1998, the Commission
held an auction of 42 VHF Public Coast
licenses in the 157.1875–157.4500 MHz
(ship transmit) and 161.775–162.0125
MHz (coast transmit) bands. For
purposes of the auction, the
Commission defined a ‘‘small’’ business
as an entity that, together with
controlling interests and affiliates, has
average gross revenues for the preceding
three years not to exceed $15 million
dollars. In addition, a ‘‘very small’’
business is one that, together with
controlling interests and affiliates, has
average gross revenues for the preceding
three years not to exceed $3 million
dollars.201 There are approximately
10,672 licensees in the Marine Coast
Service, and the Commission estimates
that almost all of them qualify as
‘‘small’’ businesses under the above
special small business size standards.
104. Offshore Radiotelephone Service.
This service operates on several ultra
high frequencies (UHF) television
199 13 CFR 121.201, NAICS codes 513322
(changed to 517212 in October 2002).
200 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
201 Amendment of the Commission’s Rules
Concerning Maritime Communications, PR Docket
No. 92–257, Third Report and Order and
Memorandum Opinion and Order, 13 FCC Rcd
19853 (1998).
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broadcast channels that are not used for
television broadcasting in the coastal
areas of states bordering the Gulf of
Mexico.202 There are presently
approximately 55 licensees in this
service. We are unable to estimate at
this time the number of licensees that
would qualify as small under the SBA’s
small business size standard for
‘‘Cellular and Other Wireless
Telecommunications’’ services.203
Under that SBA small business size
standard, a business is small if it has
1,500 or fewer employees.204
105. Multiple Address Systems
(MAS). Entities using MAS spectrum, in
general, fall into two categories: (1)
Those using the spectrum for profitbased uses, and (2) those using the
spectrum for private internal uses. With
respect to the first category, the
Commission defines ‘‘small entity’’ for
MAS licenses as an entity that has
average gross revenues of less than $15
million in the three previous calendar
years.205 ‘‘Very small business’’ is
defined as an entity that, together with
its affiliates, has average gross revenues
of not more than $3 million for the
preceding three calendar years.206 The
SBA has approved of these
definitions.207 The majority of these
entities will most likely be licensed in
bands where the Commission has
implemented a geographic area
licensing approach that would require
the use of competitive bidding
procedures to resolve mutually
exclusive applications. The
Commission’s licensing database
indicates that, as of January 20, 1999,
there were a total of 8,670 MAS station
authorizations. Of these, 260
authorizations were associated with
common carrier service. In addition, an
auction for 5,104 MAS licenses in 176
EAs began November 14, 2001, and
closed on November 27, 2001.208 Seven
winning bidders claimed status as small
or very small businesses and won 611
licenses.
106. With respect to the second
category, which consists of entities that
202 This service is governed by Subpart I of Part
22 of the Commission’s Rules. See 47 CFR 22.1001–
22.1037.
203 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
204 Id.
205 See Amendment of the Commission’s Rules
Regarding Multiple Address Systems, Report and
Order, 15 FCC Rcd 11956, 12008, para. 123 (2000).
206 Id.
207 See Letter to Thomas Sugrue, Chief, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez,
Administrator, Small Business Administration,
dated June 4, 1999.
208 See ‘‘Multiple Address Systems Spectrum
Auction Closes,’’ Public Notice, 16 FCC Rcd 21011
(2001).
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41983
use, or seek to use, MAS spectrum to
accommodate internal communications
needs, we note that MAS serves an
essential role in a range of industrial,
safety, business, and land transportation
activities. MAS radios are used by
companies of all sizes, operating in
virtually all U.S. business categories,
and by all types of public safety entities.
For the majority of private internal
users, the definitions developed by the
SBA would be more appropriate. The
applicable definition of small entity in
this instance appears to be the ‘‘Cellular
and Other Wireless
Telecommunications’’ definition under
the SBA rules. This definition provides
that a small entity is any entity
employing no more than 1,500
persons.209 The Commission’s licensing
database indicates that, as of January 20,
1999, of the 8,670 total MAS station
authorizations, 8,410 authorizations
were for private radio service, and of
these, 1,433 were for private land
mobile radio service.
107. Incumbent 24 GHz Licensees.
This analysis may affect incumbent
licensees who were relocated to the 24
GHz band from the 18 GHz band, and
applicants who wish to provide services
in the 24 GHz band. The applicable SBA
small business size standard is that of
‘‘Cellular and Other Wireless
Telecommunications’’ companies. This
category provides that such a company
is small if it employs no more than
1,500 persons.210 According to Census
Bureau data for 1997, there were 977
firms in this category, total, that
operated for the entire year.211 Of this
total, 965 firms had employment of 999
or fewer employees, and an additional
12 firms had employment of 1,000
employees or more.212 Thus, under this
size standard, the great majority of firms
can be considered small. These broader
census data notwithstanding, we believe
that there are only two licensees in the
24 GHz band that were relocated from
the 18 GHz band, Teligent 213 and TRW,
Inc. It is our understanding that Teligent
and its related companies have less than
1,500 employees, though this may
209 See
13 CFR 121.201, NAICS code 517212.
CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
211 U.S. Census Bureau, 1997 Economic Census,
Subject Series: Information, ‘‘Employment Size of
Firms Subject to Federal Income Tax: 1997,’’ Table
5, NAICS code 513322 (issued October 2000).
212 Id. The census data do not provide a more
precise estimate of the number of firms that have
employment of 1,500 or fewer employees; the
largest category provided is ‘‘Firms with 1,000
employees or more.’’
213 Teligent acquired the DEMS licenses of
FirstMark, the only licensee other than TRW in the
24 GHz band whose license has been modified to
require relocation to the 24 GHz band.
210 13
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change in the future. TRW is not a small
entity. Thus, only one incumbent
licensee in the 24 GHz band is a small
business entity.
108. Future 24 GHz Licensees. With
respect to new applicants in the 24 GHz
band, we have defined ‘‘small business’’
as an entity that, together with
controlling interests and affiliates, has
average annual gross revenues for the
three preceding years not exceeding $15
million.214 ‘‘Very small business’’ in the
24 GHz band is defined as an entity that,
together with controlling interests and
affiliates, has average gross revenues not
exceeding $3 million for the preceding
three years.215 The SBA has approved
these definitions.216 The Commission
will not know how many licensees will
be small or very small businesses until
the auction, if required, is held.
109. Multipoint Distribution Service,
Multichannel Multipoint Distribution
Service, and Instructional Television
Fixed Service. Multichannel Multipoint
Distribution Service (MMDS) systems,
often referred to as ‘‘wireless cable,’’
transmit video programming to
subscribers using the microwave
frequencies of the Multipoint
Distribution Service (MDS) and
Instructional Television Fixed Service
(ITFS).217 In connection with the 1996
MDS auction, the Commission
defined—small business’’ as an entity
that, together with its affiliates, has
average gross annual revenues that are
not more than $40 million for the
preceding three calendar years.218 The
SBA has approved of this standard.219
The MDS auction resulted in 67
successful bidders obtaining licensing
opportunities for 493 Basic Trading
214 Amendments
to Parts 1, 2, 87 and 101 of the
Commission’s Rules To License Fixed Services at
24 GHz, Report and Order, 15 FCC Rcd 16934,
16967, para. 77 (2000) (24 GHz Report and Order);
see also 47 CFR 101.538(a)(2).
215 24 GHz Report and Order, 15 FCC Rcd at
16967, para. 77; see also 47 CFR 101.538(a)(1).
216 See Letter to Margaret W. Wiener, Deputy
Chief, Auctions and Industry Analysis Division,
Wireless Telecommunications Bureau, Federal
Communications Commission, from Gary M.
Jackson, Assistant Administrator, Small Business
Administration, dated July 28, 2000.
217 Amendment of Parts 21 and 74 of the
Commission’s Rules with Regard to Filing
Procedures in the Multipoint Distribution Service
and in the Instructional Television Fixed Service
and Implementation of Section 309(j) of the
Communications Act—Competitive Bidding, Report
and Order, 10 FCC Rcd 9589, 9593, para. 7 (1995)
(MDS Auction R&O).
218 47 CFR 21.961(b)(1).
219 See Letter to Margaret Wiener, Chief, Auctions
and Industry Analysis Division, Wireless
Telecommunications Bureau, Federal
Communications Bureau, from Gary Jackson,
Assistant Administrator for Size Standards, Small
Business Administration, dated March 20, 2003
(noting approval of $40 million size standard for
MDS auction).
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Areas (BTAs).220 Of the 67 auction
winners, 61 claimed status as a small
business. At this time, we estimate that
of the 61 small business MDS auction
winners, 48 remain small business
licensees. In addition to the 48 small
businesses that hold BTA
authorizations, there are approximately
392 incumbent MDS licensees that have
gross revenues that are not more than
$40 million and are thus considered
small entities.221
110. In addition, the SBA has
developed a small business size
standard for Cable and Other Program
Distribution,222 which includes all such
companies generating $12.5 million or
less in annual receipts.223 According to
Census Bureau data for 1997, there were
a total of 1,311 firms in this category,
total, that had operated for the entire
year.224 Of this total, 1,180 firms had
annual receipts of under $10 million,
and an additional 52 firms had receipts
of $10 million or more but less than $25
million.225 Consequently, we estimate
that the majority of providers in this
service category are small businesses
that may be affected by the proposed
rules and policies.
111. Finally, while SBA approval for
a Commission-defined small business
size standard applicable to ITFS is
pending, educational institutions are
included in this analysis as small
entities.226 There are currently 2,032
ITFS licensees, and all but 100 of these
licenses are held by educational
institutions. Thus, we tentatively
conclude that at least 1,932 ITFS
licensees are small businesses.
112. Television Broadcasting. The
Small Business Administration defines
a television broadcasting station that has
no more than $12 million in annual
220 Basic Trading Areas (BTAs) were designed by
Rand McNally and are the geographic areas by
which MDS was auctioned and authorized. See
MDS Auction R&O, 10 FCC Rcd at 9608, paragraph
34.
221 47 U.S.C. 309(j). Hundreds of stations were
licensed to incumbent MDS licensees prior to
implementation of Section 309(j) of the
Communications Act of 1934, 47 U.S.C. 309(j). For
these pre-auction licenses, the applicable standard
is SBA’s small business size standard for ‘‘other
telecommunications’’ (annual receipts of $12.5
million or less). See 13 CFR 121.201, NAICS code
517910.
222 13 CFR 121.201, NAICS code 517510.
223 Id.
224 U.S. Census Bureau, 1997 Economic Census,
Subject Series: Information, ‘‘Establishment and
Firm Size (Including Legal Form of Organization),’’
Table 4 (issued October 2000).
225 Id.
226 In addition, the term ‘‘small entity’’ under
SBREFA applies to small organizations (nonprofits)
and to small governmental jurisdictions (cities,
counties, towns, townships, villages, school
districts, and special districts with populations of
less than 50,000). 5 U.S.C. 601(4)–(6). We do not
collect annual revenue data on ITFS licensees.
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receipts as a small business.227 Business
concerns included in this industry are
those ‘‘primarily engaged in
broadcasting images together with
sound.’’ 228 According to Commission
staff review of the BIA Publications, Inc.
Master Access Television Analyzer
Database as of May 16, 2003, about 814
of the 1,220 commercial television
stations in the United States have
revenues of $12 million or less. We
note, however, that, in assessing
whether a business concern qualifies as
small under the above definition,
business (control) affiliations 229 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. There are also 2,053 low
power television stations (LPTV).230
Given the nature of this service, we will
presume that all LPTV licensees qualify
as small entities under the SBA
definition.
113. In addition, an element of the
definition of ‘‘small business’’ is that the
entity not be dominant in its field of
operation. We are unable at this time to
define or quantify the criteria that
would establish whether a specific
television station is dominant in its field
of operation. Accordingly, the estimate
of small businesses to which rules may
apply do not exclude any television
station from the definition of a small
business on this basis and are therefore
over-inclusive to that extent. Also as
noted, an additional element of the
definition of ‘‘small business’’ is that the
227 See OMB, North American Industry
Classification System: United States, 1997 at 509
(1997) (NAICS code 513120, which was changed to
code 515120 in October 2002).
228 OMB, North American Industry Classification
System: United States, 1997, at 509 (1997) (NAICS
code 513120, which was changed to code 51520 in
October 2002). This category description continues,
‘‘These establishments operate television
broadcasting studios and facilities for the
programming and transmission of programs to the
public. 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
studios, from an affiliated network, or from external
sources.’’ Separate census categories pertain to
businesses primarily engaged in producing
programming. See id. at 502–05, NAICS code
51210. Motion Picture and Video Production: code
512120, Motion Picture and Video Distribution,
code 512191, Teleproduction and Other PostProduction Services, and code 512199, Other
Motion Picture and Video Industries.
229 ‘‘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 121.103(a)(1).
230 FCC News Release, ‘‘Broadcast Station Totals
as of September 30, 2004.’’
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entity must be independently owned
and operated. We note that it is difficult
at times to assess these criteria in the
context of media entities and our
estimates of small businesses to which
they apply may be over-inclusive to this
extent.
114. Radio Broadcasting. The SBA
defines a radio broadcast entity that has
$6 million or less in annual receipts as
a small business.231 Business concerns
included in this industry are those
‘‘primarily engaged in broadcasting
aural programs by radio to the public.232
According to Commission staff review
of the BIA Publications, Inc., Master
Access Radio Analyzer Database, as of
May 16, 2003, about 10,427 of the
10,945 commercial radio stations in the
United States have revenue of $6
million or less. We note, however, that
many radio stations are affiliated with
much larger corporations with much
higher revenue, and that in assessing
whether a business concern qualifies as
small under the above definition, such
business (control) affiliations 233 are
included.234 Our estimate, therefore
likely overstates the number of small
businesses that might be affected by our
action.
115. Auxiliary, Special Broadcast and
Other Program Distribution Services.
This service involves a variety of
transmitters, generally used to relay
broadcast programming to the public
(through translator and booster stations)
or within the program distribution chain
(from a remote news gathering unit back
to the station). The Commission has not
developed a definition of small entities
applicable to broadcast auxiliary
licensees. The applicable definitions of
small entities are those, noted
previously, under the SBA rules
applicable to radio broadcasting stations
and television broadcasting stations.235
116. The Commission estimates that
there are approximately 3,868 FM
translators and boosters.236 The
Commission does not collect financial
information on any broadcast facility,
and the Department of Commerce does
231 See OMB, North American Industry
Classification System: United States, 1997, at 509
(1997) (Radio Stations) (NAICS code 513111, which
was changed to code 515112 in October 2002).
232 Id.
233 ‘‘Concerns are affiliates of each other when
one concern controls or has the power to control
the other, or a third party or parties controls or has
the power to control both.’’ 13 CFR 121.103(a)(1).
234 ‘‘SBA counts the receipts or employees of the
concern whose size is at issue and those of all its
domestic and foreign affiliates, regardless of
whether the affiliates are organized for profit, in
determining the concern’s size.’’ 13 CFR 121(a)(4).
235 13 CFR 121.201, NAICS codes 513111 and
513112.
236 FCC News Release, ‘‘Broadcast Station Totals
as of September 30, 2004.’’
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not collect financial information on
these auxiliary broadcast facilities. We
believe that most, if not all, of these
auxiliary facilities could be classified as
small businesses by themselves. We also
recognize that most commercial
translators and boosters are owned by a
parent station which, in some cases,
would be covered by the revenue
definition of small business entity
discussed above. These stations would
likely have annual revenues that exceed
the SBA maximum to be designated as
a small business ($5 million for a radio
station or $10.5 million for a TV
station). Furthermore, they do not meet
the Small Business Act’s definition of a
‘‘small business concern’’ because they
are not independently owned and
operated.237
117. Cable and Other Program
Distribution. This category includes
cable systems operators, closed circuit
television services, direct broadcast
satellite services, multipoint
distribution systems, satellite master
antenna systems, and subscription
television services. The SBA has
developed small business size standard
for this census category, which includes
all such companies generating $12.5
million or less in revenue annually.238
According to Census Bureau data for
1997, there were a total of 1,311 firms
in this category, total, that had operated
for the entire year.239 Of this total, 1,180
firms had annual receipts of under $10
million and an additional 52 firms had
receipts of $10 million or more but less
than $25 million. Consequently, the
Commission estimates that the majority
of providers in this service category are
small businesses that may be affected by
the rules and policies herein.
118. Cable System Operators (Rate
Regulation Standard). The Commission
has developed its own small business
size standard for cable system operators,
for purposes of rate regulation. Under
the Commission’s rules, a ‘‘small cable
company’’ is one serving fewer than
400,000 subscribers nationwide.240 The
most recent estimates indicate that there
were 1,439 cable operators who
qualified as small cable system
U.S.C. 632.
CFR 121.201, NAICS code 513220 (changed
to 517510 in October 2002).
239 U.S. Census Bureau, 1997 Economic Census,
Subject Series: Information, ‘‘Establishment and
Firm Size (Including Legal Form of Organization)’’,
Table 4, NAICS code 513220 (issued October 2000).
240 47 CFR 76.901(e). The Commission developed
this definition based on its determination that a
small cable system operator is one with annual
revenues of $100 million or less. Implementation of
Sections of the 1992 Cable Act: Rate Regulation,
Sixth Report and Order and Eleventh Order on
Reconsideration, 10 FCC Rcd 7393 (1995), 60 FR
10534 (February 27, 1995).
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237 15
238 13
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41985
operators at the end of 1995.241 Since
then, some of those companies may
have grown to serve over 400,000
subscribers, and others may have been
involved in transactions that caused
them to be combined with other cable
operators. Consequently, the
Commission estimates that there are
now fewer than 1,439 small entity cable
system operators that may be affected by
the rules and policies herein.
119. Cable System Operators
(Telecom Act Standard). The
Communications Act of 1934, as
amended, also contains a size standard
for small cable system operators, which
is ‘‘a cable operator that, directly or
through an affiliate, serves in the
aggregate fewer than 1 percent of all
subscribers in the United States and is
not affiliated with any entity or entities
whose gross annual revenues in the
aggregate exceed $250,000,000.’’ 242 The
Commission has determined that there
are 65,000,000 subscribers in the United
States.243 Therefore, an operator serving
fewer than 650,000 subscribers shall be
deemed a small operator, if its annual
revenues, when combined with the total
annual revenues of all its affiliates, do
not exceed $250 million in the
aggregate.244 Based on available data,
the Commission estimates that the
number of cable operators serving
650,000 subscribers or fewer, totals
1,450.245 The Commission neither
requests nor collects information on
whether cable system operators are
affiliated with entities whose gross
annual revenues exceed $250
million,246 and therefore are unable, at
this time, to estimate more accurately
the number of cable system operators
that would qualify as small cable
operators under the size standard
contained in the Communications Act of
1934.
120. Open Video Services. Open
Video Service (OVS) systems provide
subscription services.247 The SBA has
created a small business size standard
for Cable and Other Program
241 Paul Kagan Associates, Inc., Cable TV
Investor, February 29, 1996 (based on figures for
December 30, 1995).
242 47 U.S.C. 543(m)(2).
243 See FCC Announces New Subscriber Count for
the Definition of Small Cable Operator, Public
Notice, DA 01–158 (January 24, 2001).
244 47 CFR 76.901(f).
245 See FCC Announces New Subscriber Count for
the Definition of Small Cable Operators, Public
Notice, DA–01–0158 (released January 24, 2001).
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 section 76.901(f) of the
Commission’s rules. See 47 CFR 76.909(b).
247 See 47 U.S.C. 573.
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Distribution.248 This standard provides
that a small entity is one with $12.5
million or less in annual receipts. The
Commission has certified approximately
25 OVS operators to serve 75 areas, and
some of these are currently providing
service.249 Affiliates of Residential
Communications Network, Inc. (RCN)
received approval to operate OVS
systems in New York City, Boston,
Washington, DC, and other areas. RCN
has sufficient revenues to assure that
they do not qualify as a small business
entity. Little financial information is
available for the other entities that are
authorized to provide OVS and are not
yet operational. Given that some entities
authorized to provide OVS service have
not yet begun to generate revenues, the
Commission concludes that up to 24
OVS operators (those remaining) might
qualify as small businesses that may be
affected by the rules and policies herein.
121. Cable Television Relay Service.
This service includes transmitters
generally used to relay cable
programming within cable television
system distribution systems. The SBA
has defined a small business size
standard for Cable and other Program
Distribution, consisting of all such
companies having annual receipts of no
more than $12.5 million.250 According
to Census Bureau data for 1997, there
were 1,311 firms in the industry
category Cable and Other Program
Distribution, total, that operated for the
entire year.251 Of this total, 1,180 firms
had annual receipts of $10 million or
less, and an additional 52 firms had
receipts of $10 million or more but less
than $25 million.252 Thus, under this
standard, we estimate that the majority
of providers in this service category are
small businesses that may be affected by
the rules and policies herein.
122. Multichannel Video Distribution
and Data Service. MVDDS is a terrestrial
fixed microwave service operating in
the 12.2–12.7 GHz band. No auction has
yet been held in this service, although
an action has been scheduled for
January 14, 2004.253 Accordingly, there
are no licensees in this service.
248 13 CFR 121.201, NAICS code 513220 (changed
to 517510 in October 2002).
249 See https://www.fcc.gov/csb/ovs/csovscer.html
(current as of March 2002).
250 13 CFR 121.201, NAICS code 517510.
251 U.S. Census Bureau, 1997 Economic Census,
Subject Series: Information, ‘‘Establishment and
Firm Size (Including Legal Form of Organization),’’
Table 4 (issued October 2000).
252 Id.
253 ‘‘Auctions of Licenses in the Multichannel
Video Distribution and Data Service Rescheduled
for January 14, 2004,’’ Public Notice, DA 03–2354
(August 28, 2003).
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123. Amateur Radio Service. These
licensees are believed to be individuals,
and therefore are not small entities.
124. Aviation and Marine Services.
Small businesses in the aviation and
marine radio services use a very high
frequency (VHF) marine or aircraft radio
and, as appropriate, an emergency
position-indicating radio beacon (and/or
radar) or an emergency locator
transmitter. The Commission has not
developed a small business size
standard specifically applicable to these
small businesses. For purposes of this
analysis, the Commission uses the SBA
small business size standard for the
category ‘‘Cellular and Other
Telecommunications,’’ which is 1,500
or fewer employees.254 Most applicants
for recreational licenses are individuals.
Approximately 581,000 ship station
licensees and 131,000 aircraft station
licensees operate domestically and are
not subject to the radio carriage
requirements of any statute or treaty.
For purposes of our evaluations in this
analysis, we estimate that there are up
to approximately 712,000 licensees that
are small businesses (or individuals)
under the SBA standard. In addition,
between December 3, 1998 and
December 14, 1998, the Commission
held an auction of 42 VHF Public Coast
licenses in the 157.1875–157.4500 MHz
(ship transmit) and 161.775–162.0125
MHz (coast transmit) bands. For
purposes of the auction, the
Commission defined a ‘‘small’’ business
as an entity that, together with
controlling interests and affiliates, has
average gross revenues for the preceding
three years not to exceed $15 million
dollars. In addition, a ‘‘very small’’
business is one that, together with
controlling interests and affiliates, has
average gross revenues for the preceding
three years not to exceed $3 million
dollars.255 There are approximately
10,672 licensees in the Marine Coast
Service, and the Commission estimates
that almost all of them qualify as
‘‘small’’ businesses under the above
special small business size standards.
125. Personal Radio Services.
Personal radio services provide shortrange, low power radio for personal
communications, radio signaling, and
business communications not provided
for in other services. The Personal Radio
Services include spectrum licensed
under Part 95 of our rules.256 These
services include Citizen Band Radio
254 13 CFR 121.201, NAICS code 513322 (changed
to 517212 in October 2002).
255 Amendment of the Commission’s Rules
Concerning Maritime Communications, Third
Report and Order and Memorandum Opinion and
Order, 13 FCC Rcd 19853 (1998).
256 47 CFR part 90.
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Service (CB), General Mobile Radio
Service (GMRS), Radio Control Radio
Service (R/C), Family Radio Service
(FRS), Wireless Medical Telemetry
Service (WMTS), Medical Implant
Communications Service (MICS), Low
Power Radio Service (LPRS), and MultiUse Radio Service (MURS).257 There are
a variety of methods used to license the
spectrum in these rule parts, from
licensing by rule, to conditioning
operation on successful completion of a
required test, to site-based licensing, to
geographic area licensing. Under the
RFA, the Commission is required to
make a determination of which small
entities are directly affected by these
rules. Since all such entities are
wireless, we apply the definition of
cellular and other wireless
telecommunications, pursuant to which
a small entity is defined as employing
1,500 or fewer persons.258 Many of the
licensees in these services are
individuals, and thus are not small
entities. In addition, due to the mostly
unlicensed and shared nature of the
spectrum utilized in many of these
services, the Commission lacks direct
information upon which to base an
estimation of the number of small
entities under an SBA definition that
might be directly affected by these rules.
126. Public Safety Radio Services.
Public Safety radio services include
police, fire, local government, forestry
conservation, highway maintenance,
and emergency medical services.259
257 The Citizens Band Radio Service, General
Mobile Radio Service, Radio Control Radio Service,
Family Radio Service, Wireless Medical Telemetry
Service, Medical Implant Communications Service,
Low Power Radio Service, and Multi-Use Radio
Service are governed by Subpart D, Subpart A,
Subpart C, Subpart B, Subpart H, Subpart I, Subpart
G, and Subpart J, respectively, of Part 95 of the
Commission’s rules. See generally 47 CFR part 95.
258 13 CFR 121.201, NAICS Code 517212.
259 With the exception of the special emergency
service, these services are governed by Subpart B
of part 90 of the Commission’s Rules, 47 CFR
90.15–90.27. The police service includes
approximately 27,000 licensees that serve state,
county, and municipal enforcement through
telephony (voice), telegraphy (code) and teletype
and facsimile (printed material). The fire radio
service includes approximately 23,000 licensees
comprised of private volunteer or professional fire
companies as well as units under governmental
control. The local government service that is
presently comprised of approximately 41,000
licensees that are state, county, or municipal
entities that use the radio for official purposes not
covered by other public safety services. There are
approximately 7,000 licensees within the forestry
service which is comprised of licensees from state
departments of conservation and private forest
organizations who set up communications networks
among fire lookout towers and ground crews. The
approximately 9,000 state and local governments
are licensed to highway maintenance service
provide emergency and routine communications to
aid other public safety services to keep main roads
safe for vehicular traffic. The approximately 1,000
licensees in the Emergency Medical Radio Service
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
There are a total of approximately
127,540 licensees in these services.
Governmental entities 260 as well as
private businesses comprise the
licensees for these services. All
governmental entities with populations
of less than 50,000 fall within the
definition of a small entity.261
IV. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
127. With certain exceptions, the
Commission’s Schedule of Regulatory
Fees applies to all Commission
licensees and regulatees. Most licensees
will be required to count the number of
licenses or call signs authorized,
complete and submit an FCC Form 159
(‘‘FCC Remittance Advice’’), and pay a
regulatory fee based on the number of
licenses or call signs.262 Interstate
telephone service providers must
compute their annual regulatory fee
based on their interstate and
international end-user revenue using
information they already supply to the
Commission in compliance with the
Form 499–A, Telecommunications
Reporting Worksheet, and they must
complete and submit the FCC Form 159.
(EMRS) use the 39 channels allocated to this service
for emergency medical service communications
related to the delivery of emergency medical
treatment. 47 CFR 90.15–90.27. The approximately
20,000 licensees in the special emergency service
include medical services, rescue organizations,
veterinarians, handicapped persons, disaster relief
organizations, school buses, beach patrols,
establishments in isolated areas, communications
standby facilities, and emergency repair of public
communications facilities. 47 CFR 90.33–90.55.
260 47 CFR 1.1162.
261 5 U.S.C. 601(5).
262 The following categories are exempt from the
Commission’s Schedule of Regulatory Fees:
Amateur radio licensees (except applicants for
vanity call signs) and operators in other nonlicensed services (e.g., Personal Radio, part 15, ship
and aircraft). Governments and non-profit (exempt
under section 501(c) of the Internal Revenue Code)
entities are exempt from payment of regulatory fees
and need not submit payment. Non-commercial
educational broadcast licensees are exempt from
regulatory fees as are licensees of auxiliary
broadcast services such as low power auxiliary
stations, television auxiliary service stations,
remote pickup stations and aural broadcast
auxiliary stations where such licenses are used in
conjunction with commonly owned noncommercial educational stations. Emergency Alert
System licenses for auxiliary service facilities are
also exempt as are instructional television fixed
service licensees. Regulatory fees are automatically
waived for the licensee of any translator station
that: (1) Is not licensed to, in whole or in part, and
does not have common ownership with, the
licensee of a commercial broadcast station; (2) does
not derive income from advertising; and (3) is
dependent on subscriptions or contributions from
members of the community served for support.
Receive only earth station permittees are exempt
from payment of regulatory fees. A regulatee will
be relieved of its fee payment requirement if its
total fee due, including all categories of fees for
which payment is due by the entity, amounts to less
than $10.
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Compliance with the fee schedule will
require some licensees to tabulate the
number of units (e.g., cellular
telephones, pagers, cable TV
subscribers) they have in service, and
complete and submit an FCC Form 159.
Licensees ordinarily will keep a list of
the number of units they have in service
as part of their normal business
practices. No additional outside
professional skills are required to
complete the FCC Form 159, and it can
be completed by the employees
responsible for an entity’s business
records.
128. Each licensee must submit the
FCC Form 159 to the Commission’s
lockbox bank after computing the
number of units subject to the fee.
Licensees may also file electronically to
minimize the burden of submitting
multiple copies of the FCC Form 159.
Applicants who pay small fees in
advance and provide fee information as
part of their application must use FCC
Form 159.
129. Licensees and regulatees are
advised that failure to submit the
required regulatory fee in a timely
manner will subject the licensee or
regulatee to a late payment penalty of 25
percent in addition to the required
fee.263 If payment is not received, new
or pending applications may be
dismissed, and existing authorizations
may be subject to rescission.264 Further,
in accordance with the Debt Collection
Improvement Act of 1996, federal
agencies may bar a person or entity from
obtaining a Federal loan or loan
insurance guarantee if that person or
entity fails to pay a delinquent debt
owed to any federal agency.265
Nonpayment of regulatory fees is a debt
owed the United States pursuant to 31
U.S.C. 3711 et seq., and the Debt
Collection Improvement Act of 1996,
Public Law 194–134. Appropriate
enforcement measures as well as
administrative and judicial remedies,
may be exercised by the Commission.
Debts owed to the Commission may
result in a person or entity being denied
a federal loan or loan guarantee pending
before another federal agency until such
obligations are paid.266
130. The Commission’s rules
currently provide for relief in
exceptional circumstances. Persons or
entities may request a waiver, reduction
or deferment of payment of the
regulatory fee.267 However, timely
submission of the required regulatory
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263 47
CFR 1.1164.
CFR 1.1164(c).
265 Public Law 104–134, 110 Stat. 1321 (1996).
266 31 U.S.C. 7701(c)(2)(B).
267 47 CFR 1.1166.
264 47
Frm 00051
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41987
fee must accompany requests for
waivers or reductions. This will avoid
any late payment penalty if the request
is denied. The fee will be refunded if
the request is granted. In exceptional
and compelling instances (where
payment of the regulatory fee along with
the waiver or reduction request could
result in reduction of service to a
community or other financial hardship
to the licensee), the Commission will
defer payment in response to a request
filed with the appropriate supporting
documentation.
V. Steps Taken to Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
131. The RFA requires an agency to
describe any significant alternatives that
it has considered in reaching its
proposed approach, which may include
the following four alternatives: (1) The
establishment of differing compliance or
reporting requirements or timetables
that take into account the resources
available to small entities; (2) the
clarification, consolidation, or
simplification of compliance or
reporting requirements under the rule
for small entities; (3) the use of
performance, rather than design,
standards; and (4) an exemption from
coverage of the rule, or any part thereof,
for small entities. As described in
Section III of this FRFA, supra, we have
created procedures in which all feefiling licensees and regulatees use a
single form, FCC Form 159, and have
described in plain language the general
filing requirements. We have sought
comment on other alternatives that
might simplify our fee procedures or
otherwise benefit small entities, while
remaining consistent with our statutory
responsibilities in this proceeding.
132. The Omnibus Appropriations Act
for FY 2005, Public Law 108–447,
requires the Commission to revise its
Schedule of Regulatory Fees in order to
recover the amount of regulatory fees
that Congress, pursuant to section 9(a)
of the Communications Act, as
amended, has required the Commission
to collect for Fiscal Year (FY) 2005.268
As noted, we sought comment on the
proposed methodology for
implementing these statutory
requirements and any other potential
impact of these proposals on small
entities.
133. We have previously used cost
accounting data for computation of
regulatory fees, but found that some fees
which were very small in previous years
would have increased dramatically and
would have a disproportionate impact
268 47
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U.S.C. 159(a).
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
on smaller entities. The methodology
we are using in this Report and Order
minimizes this impact by limiting the
amount of increase and shifting costs to
other services which, for the most part,
are larger entities.
134. Several categories of licensees
and regulatees are exempt from payment
of regulatory fees. See, e.g., footnote
261, supra.
135. Report to Small Business
Administration: The Commission will
send a copy of this Report and Order,
including a copy of the FRFA to the
Chief Counsel for Advocacy of the Small
Business Administration. The Report
and Order and FRFA (or summaries
thereof) will also be published in the
Federal Register.
136. Report to Congress: The
Commission will send a copy of this
Final Regulatory Flexibility Analysis
(FRFA), along with this Report and
Order, in a report to Congress pursuant
to the Congressional Review Act, 5
U.S.C. 801(a)(1)(A).
Attachment B—Sources of Payment
Unit Estimates for FY 2005
In order to calculate individual
service fees for FY 2005, we adjusted FY
2004 payment units for each service to
more accurately reflect expected FY
2005 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 the Commission’s Universal
Licensing System (ULS), International
Bureau Filing System (IBFS), and
Consolidated Database System (CDBS).
The industry sources we consulted
include, but are not limited to,
Television & Cable Factbook by Warren
Publishing, Inc. and the Broadcasting
and Cable Yearbook by Reed Elsevier,
Inc, as well as reports generated within
the Commission such as the Wireline
Competition Bureau’s Trends in
Telephone Service and the Wireless
Telecommunications Bureau’s
Numbering Resource Utilization
Forecast.
We tried to obtain verification for
these estimates from multiple sources
and, in all cases, we compared FY 2005
estimates with actual FY 2004 payment
units to ensure that our revised
estimates were reasonable. Where
appropriate, we adjusted and/or
rounded our final estimates to take into
consideration the fact that certain
variables that impact on the number of
payment units cannot yet be estimated
exactly. These include an unknown
number of waivers and/or exemptions
that may occur in FY 2005 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.
Therefore, when we note, for example,
that our estimated FY 2005 payment
units are based on FY 2004 actual
payment units, it does not necessarily
mean that our FY 2005 projection is
exactly the same number as FY 2004. It
means that we have either rounded the
FY 2005 number or adjusted it slightly
to account for these variables.
Fee category
Sources of payment unit estimates
Land Mobile (All), Microwave, 218–219 MHz,
Marine (Ship & Coast), Aviation (Aircraft &
Ground), GMRS, Amateur Vanity Call Signs,
Domestic Public Fixed.
CMRS Cellular/Mobile Services .........................
CMRS Messaging Services ................................
AM/FM Radio Stations ........................................
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 Wireless Telecommunications Bureau estimates.
Based on Wireless Telecommunications Bureau Competition Report estimates.
Based on estimates from Media Services Bureau estimates, adjusted for exemptions, and actual FY 2004 payment units.
Based on Media Services Bureau estimates and actual FY 2004 payment units.
Based on Media Services Bureau estimates and actual FY 2004 payment units.
Based on actual FY 2004 payment units.
Based on actual FY 2004 payment units.
Based on Wireless Telecommunications Bureau estimates and actual FY 2004 payment units.
Based on actual FY 2004 payment units.
UHF/VHF Television Stations .............................
AM/FM/TV Construction Permits ........................
LPTV, Translators and Boosters ........................
Broadcast Auxiliaries ..........................................
BRS (formerly MDS/MMDS) ...............................
Cable Television Relay Service (CARS) Stations.
Cable Television System Subscribers ................
Interstate Telecommunication Service Providers
Earth Stations .....................................................
Space Stations (GSOs & NGSOs) .....................
International Bearer Circuits ...............................
International HF Broadcast Stations, International Public Fixed Radio Service.
Based on Media Services Bureau industry estimates of subscribership, and actual FY 2004
payment units.
Based on actual FY 2004 interstate revenues reported on Telecommunications Reporting
Worksheet, adjusted for FY 2005 revenue growth/decline for industry, and projections by the
Wireline Competition Bureau.
Based on actual FY 2004 payment estimates and projected FY 2005 units.
Based on International Bureau licensee data base estimates.
Based on FY 2004 actual paid units, and adjusted for growth.
Based on International Bureau estimates.
ATTACHMENT C.—CALCULATION OF FY 2005 REVENUE REQUIREMENTS AND PRO-RATA FEES
[Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the term of the license and are
submitted along with the application at the time the application is filed.]
FY 2005
payment units
Fee category
PLMRS (Exclusive use) ............................
PLMRS (Shared use) ...............................
Microwave .................................................
218–219 MHz (Formerly IVDS) ................
Marine (Ship) ............................................
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3,700
46,000
2,600
3
7,000
Frm 00052
Years
FY 2004
revenue estimate
Pro-rated FY
2005 revenue
requirement *
Computed
new FY
2005 regulatory fee
Rounded
new FY
2005 regulatory fee
Expected FY
2005 revenue
10
10
10
10
10
340,000
2,300,000
1,500,000
1,500
585,000
349,068
2,361,342
1,540,006
1,540
600,602
9
5
59
51
9
10
5
60
50
10
370,000
2,300,000
1,560,000
1,500
700,000
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41989
ATTACHMENT C.—CALCULATION OF FY 2005 REVENUE REQUIREMENTS AND PRO-RATA FEES—Continued
[Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the term of the license and are
submitted along with the application at the time the application is filed.]
Years
FY 2004
revenue estimate
Pro-rated FY
2005 revenue
requirement *
Computed
new FY
2005 regulatory fee
Rounded
new FY
2005 regulatory fee
Expected FY
2005 revenue
21,000
7,400
1,000
1,600
7,600
66
1,592
956
1,769
3,045
2,963
113
98
123
3
43
61
72
118
211
9
84
79
115
162
181
31
25,000
2,900
900
65,000,000
5
10
10
5
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
1
375,000
155,000
96,200
120,000
162,119
198,375
2,421,075
841,500
2,784,800
5,715,500
7,026,150
33,945
267,300
128,100
1,560
2,596,125
2,654,400
2,246,475
2,161,725
951,750
27,900
1,599,750
1,310,175
1,088,100
943,500
301,950
192,950
250,000
1,116,500
135,000
45,500,000
385,001
159,134
98,766
123,200
166,443
203,666
2,485,646
863,943
2,859,072
5,980,390
7,321,585
34,850
53,929
131,516
1,602
2,665,365
2,725,194
2,306,389
2,219,379
977,134
28,644
1,682,187
1,384,889
1,156,891
993,971
310,003
53,475
256,668
1,146,277
138,001
46,713,502
4
2
10
15
2.19
3,086
1,561
904
1,616
1,964
2,471
308
550
1,069
534
61,985
44,675
32,033
18,808
4,631
3,183
20,026
17,530
10,060
6,136
1,713
1,725
10
395
154
0.719
5
5
10
15
2.19
3,075
1,550
900
1,625
1,975
2,475
310
550
1,075
535
61,975
44,675
32,025
18,800
4,625
3,175
20,025
17,525
10,050
6,125
1,725
1,725
10
395
154
0.72
525,000
370,000
100,000
120,000
166,443
202,950
2,467,600
860,400
2,874,625
6,013,875
7,333,425
35,030
53,900
132,225
1,605
2,664,925
2,725,175
2,305,800
2,218,400
975,875
28,575
1,682,100
1,384,475
1,155,750
992,250
312,225
53,475
250,000
1,145,500
139,500
46,800,000
54,000,000,000
1
127,530,000
130,931,273
0.002425
0.00243
131,220,000
179,000,000
11,200,000
1,800
330
5,300,000
1
3,400
5
81
6
1
1
1
1
1
1
1
1
1
1
38,250,000
1,160,000
432,000
91,800
7,056,000
1,750
680,000
3,725
8,829,975
657,000
39,565,080
896,000
455,400
83,490
7,244,186
1,797
698,136
3,824
9,065,474
674,522
0.221
0.08
253
253
1.37
1,797
205
765
111,919
112,420
0.22
0.08
255
255
1.37
1,800
205
765
111,925
112,425
39,380,000
896,000
459,000
84,150
7,261,000
1,800
697,000
3,825
9,065,925
674,550
Total Estimated Revenue to be Collected .............................................
............................
.........
272,821,674
280,099,050
..................
..................
280,765,853
Total Revenue Requirement .............
............................
.........
272,958,000
280,098,000
..................
..................
280,098,000
Difference .................................................
............................
.........
(136,326)
1,050
..................
..................
667,853
FY 2005
payment units
Fee category
GMRS .......................................................
Aviation (Aircraft) ......................................
Marine (Coast) ..........................................
Aviation (Ground) .....................................
Amateur Vanity Call Signs .......................
AM Class A ...............................................
AM Class B ...............................................
AM Class C ..............................................
AM Class D ..............................................
FM Classes A, B1 & C3 ...........................
FM Classes B, C, C0, C1 & C2 ...............
AM Construction Permits ..........................
FM Construction Permits 1 ........................
Satellite TV ...............................................
Satellite TV Construction Permit ..............
VHF Markets 1–10 ...................................
VHF Markets 11–25 .................................
VHF Markets 26–50 .................................
VHF Markets 51–100 ...............................
VHF Remaining Markets ..........................
UHF Construction Permits ........................
UHF Markets 1–10 ...................................
UHF Markets 11–25 .................................
UHF Markets 26–50 .................................
UHF Markets 51–100 ...............................
UHF Remaining Markets ..........................
UHF Construction Permits 1 .....................
Broadcast Auxiliaries ................................
LPTV/Translators/Boosters .......................
CARS Stations ..........................................
Cable TV Systems ....................................
Interstate Telecommunication Service
Providers ...............................................
CMRS Mobile Services (Cellular/Public
Mobile) ..................................................
CMRS Messaging Services ......................
BRS 2 ........................................................
LMDS 3 ......................................................
International Bearer Circuits .....................
International Public Fixed .........................
Earth Stations ...........................................
International HF Broadcast .......................
Space Stations (Geostationary) ...............
Space Stations (Non-Geostationary .........
*1,02615787 factor applied based on the amount Congress designated for recovery through regulatory fees (Public Law 108–7 and 47 U.S.C.
159(a)(2)).
1 The FM Construction Permit and UHF Construction Permit revenues were adjusted so that the construction permit fee is no higher than the
level of the lowest licensed fee for that class of service.
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 et al., Report & Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165 (2004).
3 Although we are tracking BRS (formerly MDS/MMDS) and LMDS separately in terms of payment units, the FY 2005 regulatory fee for BRS
and LMDS is calculated by combining the units and the ‘‘Pro-Rated Revenue Requirements’’ of both BRS and LMDS.
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
ATTACHMENT D.—FY 2005 SCHEDULE OF REGULATORY FEES
[Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the term of the license and are
submitted along with the application at the time the application is filed]
Annual
regulatory fee
(U.S. $’s)
Fee category
PLMRS (per license) (Exclusive Use) (47 CFR part 90) ..................................................................................................................
Microwave (per license) (47 CFR part 101) ......................................................................................................................................
218–219 MHz (Formerly Interactive Video Data Service) (per license) (47 CFR part 95) ..............................................................
Marine (Ship) (per station) (47 CFR part 80) ....................................................................................................................................
Marine (Coast) (per license) (47 CFR part 80) .................................................................................................................................
General Mobile Radio Service (per license) (47 CFR part 95) .........................................................................................................
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) .............................................................................................................................
Amateur Vanity Call Signs (per call sign) (47 CFR part 97) .............................................................................................................
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 21) .........................................................................
Local Multipoint Distribution Service (47 CFR, part 101) ..................................................................................................................
AM Radio Construction Permits ........................................................................................................................................................
FM Radio Construction Permits ........................................................................................................................................................
TV (47 CFR part 73) VHF Commercial:
Markets 1–10 ..............................................................................................................................................................................
Markets 11–25 ............................................................................................................................................................................
Markets 26–50 ............................................................................................................................................................................
Markets 51–100 ..........................................................................................................................................................................
Remaining Markets .....................................................................................................................................................................
Construction Permits ..................................................................................................................................................................
TV (47 CFR part 73) UHF Commercial:
Markets 1–10 ..............................................................................................................................................................................
Markets 11–25 ............................................................................................................................................................................
Markets 26–50 ............................................................................................................................................................................
Markets 51–100 ..........................................................................................................................................................................
Remaining Markets .....................................................................................................................................................................
Construction Permits ..................................................................................................................................................................
Satellite Television Stations (All Markets) .........................................................................................................................................
Construction Permits—Satellite Television Stations .........................................................................................................................
Low Power TV, TV/FM Translators & Boosters (47 CFR part 74) ...................................................................................................
Broadcast Auxiliaries (47 CFR part 74) ............................................................................................................................................
CARS (47 CFR part 78) ....................................................................................................................................................................
Cable Television Systems (per subscriber) (47 CFR part 76) ..........................................................................................................
Interstate Telecommunication Service Providers (per revenue dollar) .............................................................................................
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 (per active 64KB circuit) ......................................................................................................................
International Public Fixed (per call sign) (47 CFR part 23) ..............................................................................................................
International (HF) Broadcast (47 CFR part 73) .................................................................................................................................
10
60
50
10
10
5
5
5
5
15
2.19
.22
.08
255
255
310
550
61,975
44,675
32,025
18,800
4,625
3,175
20,025
17,525
10,050
6,125
1,725
1,725
1,075
535
395
10
155
.72
.00243
205
111,925
112,425
1.37
1,800
765
FY 2005 SCHEDULE OF REGULATORY FEES (CONTINUED)
FY 2005 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 .............................................
>3,000,000 ...........................................................
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AM class B
625
1,225
1,825
2,750
3,950
6,075
7,275
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475
925
1,150
1,950
2,975
4,575
5,475
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AM class C
AM class D
375
550
750
1,125
1,875
2,825
3,575
E:\FR\FM\21JYR1.SGM
450
675
1,125
1,350
2,250
3,600
4,500
21JYR1
FM
classes A,
B1 and C3
550
1,125
1,550
2,375
3,750
6,100
7,750
FM
classes B,
C, C0, C1
and C2
725
1,250
2,300
3,000
4,400
7,025
9,125
41991
Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
Attachment E—Factors, Measurements
and Calculations That Go Into
Determining Station Signal Contours
and Associated Population Coverages
AM Stations
For stations with nondirectional
daytime antennas, the theoretical
radiation was used at all azimuths. For
stations with directional daytime
antennas, specific information on each
day tower, including field ratio,
phasing, spacing and orientation was
retrieved, as well as the theoretical
pattern root-mean-square of the
radiation in all directions in the
horizontal plane (RMS) figure milliVolt
per meter (mV/m) @ 1 km) for the
antenna system. The standard, or
modified standard if pertinent,
horizontal plane radiation pattern was
calculated using techniques and
methods specified in sections 73.150
and 73.152 of the Commission’s
rules.269 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 270.
Using the calculated horizontal
radiation values, and the retrieved soil
conductivity data, the distance to the
city grade (5 mV/m) contour was
predicted for each of the 360 radials.
The resulting distance to city grade
contours were used to form a
geographical polygon. Population
counting was accomplished by
determining which 2000 block centroids
were contained in the polygon. (A block
centroid is the center point of a small
area containing population as computed
by the U.S. Census Bureau.) The sum of
the population figures for all enclosed
blocks represents the total population
for the predicted city grade 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 section
73.313 of the Commission’s rules to
predict the distance to the city grade (70
dBu (decibel above 1 microVolt per
meter) or 3.17 mV/m) contour for each
of the 360 radials.271 The resulting
distance to city grade contours were
used to form a geographical polygon.
Population counting was accomplished
by determining which 2000 block
centroids were contained in the
polygon. The sum of the population
figures for all enclosed blocks represents
the total population for the predicted
city grade coverage area.
Attachment F
Parties Filing Comments on the Notice
of Proposed Rulemaking
Blooston, Mordkofsky, Dickens, Duffy
& Prendergast (‘‘BMDDP’’).
Cingular Wireless LLC (‘‘Cingular’’).
National Cable & Telecommunications
Association (‘‘NCTA’’).
Satellite Industry Association (‘‘SIA’’).
Tyco Communications (US) Inc.
(‘‘Tyco’’).
XO Communications, Inc. (‘‘XO’’).
Parties Filing Reply Comments
American Cable Association (‘‘ACA’’).
Cellular Telecommunications and
Internet Association (‘‘CTIA’’).
DIRECTV, Inc. and EchoStar Satellite
(‘‘DirecTV & Echostar’’).
Level 3 Communications (‘‘Level 3’’).
Tyco Communications (US) Inc.
(‘‘Tyco’’).
Parties Filing a Notice of Oral Ex Parte
Presentation
Tyco Telecommunications (‘‘Tyco
Telecom’’), filed by Harris, Wiltshire &
Grannis, LLP.
Satellite company representatives
from Intelsat, PanAmSat, and SES
Americom, Filed by Hogan & Hartson,
LLP.
XO Communications (‘‘XO’’), Filed by
Mintz, Levin, Cohn, Ferris, Glovsky, and
Popeo, PC.
ATTACHMENT G.—FY 2004 SCHEDULE OF REGULATORY FEES
Annual regulatory fee
(U.S. $’s)
Fee category
PLMRS (per license) (Exclusive Use) (47 CFR part 90) ..................................................................................................................
Microwave (per license) (47 CFR part 101) ......................................................................................................................................
218–219 MHz (Formerly Interactive Video Data Service) (per license) (47 CFR part 95) ..............................................................
Marine (Ship) (per station) (47 CFR part 80) ....................................................................................................................................
Marine (Coast) (per license) (47 CFR part 80) .................................................................................................................................
General Mobile Radio Service (per license) (47 CFR part 95) .........................................................................................................
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) .............................................................................................................................
Amateur Vanity Call Signs (per call sign) (47 CFR part 97) .............................................................................................................
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) ........................................................................................
Multipoint Distribution Services (MMDS/ MDS) (per call sign) (47 CFR part 21) .............................................................................
Local Multipoint Distribution Service (per call sign) (47 CFR, part 101) ..........................................................................................
AM Radio Construction Permits ........................................................................................................................................................
FM Radio Construction Permits ........................................................................................................................................................
TV (47 CFR part 73) VHF Commercial:
Markets 1–10 ..............................................................................................................................................................................
Markets 11–25 ............................................................................................................................................................................
Markets 26–50 ............................................................................................................................................................................
Markets 51–100 ..........................................................................................................................................................................
271 47
269 47
CFR 73.150 and 73.152.
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CFR 73.313.
270 See
Map of Estimated Effective Ground
Conductivity in the United States, 47 CFR 73.190
Figure R3.
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10
50
50
15
10
5
5
5
5
15
2.08
.25
.08
270
270
465
1,650
60,375
41,475
29,175
17,575
41992
Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
ATTACHMENT G.—FY 2004 SCHEDULE OF REGULATORY FEES—Continued
Annual regulatory fee
(U.S. $’s)
Fee category
Remaining Markets .....................................................................................................................................................................
Construction Permits
TV (47 CFR part 73) UHF Commercial:
Markets 1–10 ..............................................................................................................................................................................
Markets 11–25 ............................................................................................................................................................................
Markets 26–50 ............................................................................................................................................................................
Markets 51–100 ..........................................................................................................................................................................
Remaining Markets .....................................................................................................................................................................
Construction Permits ..................................................................................................................................................................
Satellite Television Stations (All Markets) .........................................................................................................................................
Construction Permits—Satellite Television Stations .........................................................................................................................
Low Power TV, TV/FM Translators & Boosters (47 CFR part 74) ...................................................................................................
Broadcast Auxiliary (47 CFR part 74) ...............................................................................................................................................
CARS (47 CFR part 78) ....................................................................................................................................................................
Cable Television Systems (per subscriber) (47 CFR part 76) ..........................................................................................................
Interstate Telecommunication Service Providers (per revenue dollar) .............................................................................................
Earth Stations (47 CFR part 25) .......................................................................................................................................................
Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes Direct Broadcast Satellite Service (per operational station) (47 CFR part 100) ............................................................................................................................
Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) ...................................................................
International Bearer Circuits (per active 64KB circuit) ......................................................................................................................
International Public Fixed (per call sign) (47 CFR part 23) ..............................................................................................................
International (HF) Broadcast (47 CFR part 73) .................................................................................................................................
4,050
4,650
17,775
16,175
9,300
5,550
1,650
5,675
1,050
520
385
10
135
.70
.00218
200
114,675
131,400
2.52
1,750
745
FY 2004 SCHEDULE OF REGULATORY FEES (CONTINUED)
FY 2004 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 .............................................
>3,000,000 ...........................................................
AM class B
600
1,200
1,800
2,700
3,900
6,000
7,200
AM class C
450
900
1,125
1,925
2,925
4,500
5,400
AM class D
350
525
700
1,050
1,750
2,625
3,325
425
625
1,075
1,275
2,125
3,400
4,250
FM classes
A, B1 & C3
FM classes
B, C, C0, C1
& C2
525
1,050
1,450
2,225
3,550
5,775
7,350
Statement of Commissioner Michael
Copps, Concurring; Re: Assessment and
Collection of Regulatory Fees for Fiscal
Year 2005
Statement of Commissioner Jonathan
Adelstein Approving in Part,
Concurring in Part; Re: Assessment and
Collection of Regulatory Fees for Fiscal
Year 2005; MD Docket No. 05–59
I
As in past years, I concur to
emphasize that the Commission should
consider initiating a proceeding to
address when or how it would adjust
the regulatory fees pursuant to section
9(b)(3) of the Act. As technology
advances and our regulatory activities
change, we must continue to look for
ways to improve our regulatory fee
methodology to ensure that we continue
to comply fully with the Act’s
requirements.
As in years past, I must concur to
portions of our Regulatory Fee Order
because I remain troubled with the
Commission’s inability to consider
changes that undoubtedly occur from
time to time in the costs of regulatory
fees for individual services. I encourage
the Commission to continue to improve
its regulatory fee assessment processes
so that in the future we are more able
to make these adjustments as
appropriate.
675
1,175
2,200
2,875
4,225
6,750
8,775
PART 1—PRACTICE AND
PROCEDURE
List of Subjects in 47 CFR Part 1
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 1 as
follows:
1. The authority citation for part 1
continues to read as follows:
I
Authority: 47 U.S.C. 151, 154(i), 154(j),
155, 225, 303, 309.
2. Section 1.1152 is revised to read as
follows:
I
§ 1.1152 Schedule of annual regulatory
fees and filing locations for wireless radio
services.
Administrative practice and
procedure.
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
Fee amount 1
Exclusive use services (per license)
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) ........
2. Microwave (47 CFR 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. 218–219 MHz Service:
(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) ........
4. 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) ........
General Mobile Radio Service:
(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) ........
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:
(a) New Renewal/Mod (FCC 601 & 159) .............................
(b) Renewal Only (FCC 601 & 159) .....................................
(c) Renewal Only (Electronic Filing) (FCC 601 & 159) ........
Aviation Ground:
(a) New, Renewal/Mod (FCC 601 & 159) ............................
(b) Renewal Only (FCC 601 & 159) .....................................
(c) Renewal Only (Electronic Filing) (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) ........
5. Amateur Vanity Call Signs
(a) Initial or Renew (FCC 605 & 159) ..................................
(b) Initial or Renew (Electronic Filing) (FCC 605 & 159) .....
6. CMRS Mobile Services (per unit) (FCC 159) ...................
7. CMRS Messaging Services (per unit) (FCC 159) ............
8. Multipoint Distribution (Includes MMDS and MDS) ..........
9. Local Multipoint Distribution Service ................................
41993
Address
$10.00
10.00
10.00
10.00
FCC,
FCC,
FCC,
FCC,
P.O.
P.O.
P.O.
P.O.
Box
Box
Box
Box
358130,
358994,
358245,
358994,
Pittsburgh,
Pittsburgh,
Pittsburgh,
Pittsburgh,
PA
PA
PA
PA
15251–5130.
15251–5994.
15251–5245.
15251–5994.
10.00
10.00
10.00
10.00
FCC,
FCC,
FCC,
FCC,
P.O.
P.O.
P.O.
P.O.
Box
Box
Box
Box
358130,
358994,
358245,
358994,
Pittsburgh,
Pittsburgh,
Pittsburgh,
Pittsburgh,
PA
PA
PA
PA
15251–5130.
15251–5994.
15251–5245.
15251–5994.
60.00
60.00
60.00
60.00
FCC,
FCC,
FCC,
FCC,
P.O.
P.O.
P.O.
P.O.
Box
Box
Box
Box
358130,
358994,
358245,
358994,
Pittsburgh,
Pittsburgh,
Pittsburgh,
Pittsburgh,
PA
PA
PA
PA
15251–5130.
15251–5994.
15251–5245.
15251–5994.
50.00
50.00
50.00
50.00
FCC,
FCC,
FCC,
FCC,
P.O.
P.O.
P.O.
P.O.
Box
Box
Box
Box
358130,
358994,
358245,
358994,
Pittsburgh,
Pittsburgh,
Pittsburgh,
Pittsburgh,
PA
PA
PA
PA
15251–5130.
15251–5994.
15251–5245.
15251–5994.
5.00
5.00
5.00
5.00
FCC,
FCC,
FCC,
FCC,
P.O.
P.O.
P.O.
P.O.
Box
Box
Box
Box
358130,
358994,
358245,
358994,
Pittsburgh,
Pittsburgh,
Pittsburgh,
Pittsburgh,
PA
PA
PA
PA
15251–5130.
15251–5994.
15251–5245.
15251–5994.
5.00
5.00
5.00
5.00
FCC,
FCC,
FCC,
FCC,
P.O.
P.O.
P.O.
P.O.
Box
Box
Box
Box
358130,
358994,
358245,
358994,
Pittsburgh,
Pittsburgh,
Pittsburgh,
Pittsburgh,
PA
PA
PA
PA
15251–5130.
15251–5994.
15251–5245.
15251–5994.
5.00
FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994.
5.00
FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994.
10.00
10.00
10.00
FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130.
FCC, P.O. Box 358245, Pittsburgh, PA 15251–5245.
FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994.
15.00
15.00
15.00
FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130.
FCC, P.O. Box 358245, Pittsburgh, PA 15251–5245.
FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994.
10.00
10.00
10.00
10.00
FCC,
FCC,
FCC,
FCC,
P.O.
P.O.
P.O.
P.O.
Box
Box
Box
Box
358130,
358994,
358245,
358994,
Pittsburgh,
Pittsburgh,
Pittsburgh,
Pittsburgh,
PA
PA
PA
PA
15251–5130.
15251–5994.
15251–5245.
15251–5994.
5.00
5.00
5.00
5.00
FCC,
FCC,
FCC,
FCC,
P.O.
P.O.
P.O.
P.O.
Box
Box
Box
Box
358130,
358994,
358245,
358994,
Pittsburgh,
Pittsburgh,
Pittsburgh,
Pittsburgh,
PA
PA
PA
PA
15251–5130.
15251–5994.
15251–5245.
15251–5994.
2.19
2.19
2 .22 &
3 .08
255
255
FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130.
FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994.
FCC, P.O. Box 358835, Pittsburgh, PA 15251–5835.
FCC, P.O. Box 358835, Pittsburgh, PA 15251–5835.
FCC, Multipoint, P.O. Box 358835, Pittsburgh, PA 15251–
5835.
FCC, Multipoint, P.O. Box 358835, Pittsburgh, PA 15251–
5835.
1 Note that ‘‘small fees’’ are collected in advance for the entire license term. Therefore, the annual fee amount shown in this table that is a
small fee (categories 1 through 5) must be multiplied by the 5- or 10-year license term, as appropriate, to arrive at the total amount of regulatory
fees owed. It should be further noted that application fees may also apply as detailed in § 1.1102.
2 These are standard fees that are to be paid in accordance with § 1.1157(b).
3 These are standard fees that are to be paid in accordance with § 1.1157(b).
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Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
3. Section 1.1153 is revised to read as
follows:
I
§ 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 ..........................................
>3,000,000 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 ..........................................
>3,000,000 population ..........................................................
3. AM Class C
>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 ..........................................
>3,000,000 population ..........................................................
4. 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 ..........................................
>3,000,000 population ..........................................................
5. AM Construction Permit ...........................................................
6. 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 ..........................................
>3,000,000 population ..........................................................
7. 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 ..........................................
>3,000,000 population ..........................................................
8. FM Construction Permits .........................................................
TV (47 CFR part 73), VHF Commercial:
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 ........................................................
UHF Commercial:
1. Markets 1 thru 10 .............................................................
$625
1,225
1,825
2,750
3,950
6,075
7,275
Address
FCC, Radio, P.O. Box 358835, Pittsburgh, PA 15251–5835.
475
925
1,150
1,950
2,975
4,575
5,475
375
550
750
1,125
1,875
2,825
3,575
450
675
1,125
1,350
2,250
3,600
4,500
310
550
1,125
1,550
2,375
3,750
6,100
7,750
725
1,250
2,300
3,000
4,400
7,025
9,125
550
61,975
FCC, TV Branch, P.O. Box 358835, Pittsburgh, PA 15251–
5835.
44,675
32,025
18,800
4,625
3,175
20,025
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 ........................................................................
17,525
10,050
6,125
1,725
1,725
2. Construction Permits ........................................................
FCC, UHFCommercial, P.O. Box 358835, Pittsburgh, PA
15251–5835.
535
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5835.
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21JYR1
Federal Register / Vol. 70, No. 139 / Thursday, July 21, 2005 / Rules and Regulations
Radio [AM and FM] (47 CFR part 73)
Fee amount
Low Power TV, TV/FM Translator, & TV/FM Booster (47 CFR
part 74)
Broadcast Auxiliary ......................................................................
4. Section 1.1154 is revised to read as
follows:
I
395
10
Address
FCC, Low Power, P.O. Box 358835, Pittsbugh, PA 15251–
5835.
FCC, Auxiliary, P.O. Box 358835, Pittsburgh, PA 15251–5835.
§ 1.1154 Schedule of annual regulatory
charges and filing locations for common
carrier services.
Fee amount
Radio facilities:
1. Microwave (Domestic Public Fixed) (Electronic Filing)
(FCC Form 601 & 159).
Carriers:
1. Interstate Telephone Service Providers (per interstate
and international end-user revenues (see FCC Form
499–A).
5. Section 1.1155 is revised to read as
follows:
I
Address
$60.00
FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994.
.00243
FCC, Carriers, P.O. Box 358835, Pittsburgh, PA 15251–5835.
§ 1.1155 Schedule of regulatory fees and
filing locations for cable television services.
Fee amount
1. Cable Television Relay Service ...............................................
2. Cable TV System (per subscriber) ..........................................
6. Section 1.1156 is revised to read as
follows:
I
$155
.72
Address
FCC, Cable, P.O. Box 358835, Pittsburgh, PA 15251–5835.
§ 1.1156 Schedule of regulatory fees and
filing locations for international services.
Fee amount
Radio Facilities:
1. International (HF) Broadcast ............................................
$765
2. International Public Fixed .................................................
1,800
Space Stations (Geostationary Orbit) ..........................................
111,925
Space Stations (Non-Geostationary Orbit) ..................................
112,425
Earth Stations, Transmit/Receive & Transmit Only (per authorization or registration).
Carriers, International Bearer Circuits (per active 64KB circuit
or equivalent.
205
[FR Doc. 05–14267 Filed 7–20–05; 8:45 am]
ACTION:
1.37
Address
FCC, International, P.O.
5835.
FCC, International, P.O.
5835.
FCC, Space Stations,
15251–5835.
FCC, Space Stations,
15251–5835.
FCC, Space Stations,
15251–5835.
FCC, Space Stations,
15251–5835.
Final rule.
BILLING CODE 6712–01–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
49 CFR Part 230
[Docket No. FRA 2005–20044, Notice No.
2]
RIN 2130–AB64
Inspection and Maintenance Standards
for Steam Locomotives
Federal Railroad
Administration (FRA), Department of
Transportation (DOT).
AGENCY:
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41995
SUMMARY: On April 19, 2005, FRA
published a notice of proposed
rulemaking (NPRM) proposing to correct
an inadvertent, small omission from
FRA Form 4 (Boiler Specification Card)
in the Steam Locomotive Inspection and
Maintenance Standards. The form is
used to record information about
inspections of steam locomotive boilers.
FRA received two comments supporting
the adoption of the proposed rule.
Therefore, FRA adopts the proposed
rule as a final rule.
Effective Date: This rule is
effective August 22, 2005.
DATES:
FOR FURTHER INFORMATION CONTACT:
George Scerbo, Motive Power and
PO 00000
Frm 00059
Fmt 4700
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Box 358835, Pittsburgh, PA 15251–
Box 358835, Pittsburgh, PA 15251–
P.O. Box 358835, Pittsburgh, PA
P.O. Box 358835, Pittsburgh, PA
P.O. Box 358835, Pittsburgh, PA
P.O. Box 358835, Pittsburgh, PA
Equipment Safety Specialist, 1120
Vermont Avenue, NW., Mail Stop 25,
Washington, DC 20590, (202) 493–6249,
George.Scerbo@fra.dot.gov; or Melissa L.
Porter, Trial Attorney, 1120 Vermont
Avenue, NW., Mail Stop 10,
Washington, DC 20590, (202) 493–6034,
Melissa.Porter@fra.dot.gov.
On
November 17, 1999, FRA published a
final rule revising the agency’s
inspection and maintenance standards
for steam locomotives (49 CFR part 230)
(64 FR 62828). Appendix C to part 230
contains forms that railroads subject to
the rule are required to complete. On
FRA Form 4 entitled ‘‘Boiler
Specification Card,’’ FRA inadvertently
omitted three lines in the
SUPPLEMENTARY INFORMATION:
E:\FR\FM\21JYR1.SGM
21JYR1
]]>Agencies
[Federal Register Volume 70, Number 139 (Thursday, July 21, 2005)]
[Rules and Regulations]
[Pages 41967-41995]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-14267]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket Nos. 05-59 and 04-73; FCC 05-137]
Assessment and Collection of Regulatory Fees for Fiscal Year
2005; Assessment and Collection of Regulatory Fees for Fiscal Year 2004
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this document, we conclude a proceeding to collect
$280,098,000 in regulatory fees for Fiscal Year (FY) 2005. These fees
are mandated by Congress and are collected to recover the regulatory
costs associated with the Commission's enforcement, policy and
rulemaking, user information, and international activities. We also
deny the petition for reconsideration filed by Cingular Wireless LLC of
the Commission's FY 2004 Report and Order.
DATES: Effective August 22, 2005.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444 or Rob Fream, Office of Managing Director at
(202) 418-0408.
SUPPLEMENTARY INFORMATION:
Adopted: July 1, 2005.
Released: July 7, 2005.
By the Commission: Commissioner Copps concurring and issuing a
statement; Commissioner Adelstein approving in part, concurring in
part, and issuing a statement.
Table of Contents
------------------------------------------------------------------------
Paragraph
Heading No.
------------------------------------------------------------------------
I. Introduction........................................... 1
II. Discussion............................................ 2
A. Development of FY 2005 Fees........................ 2
1. Calculation of Revenue and Fee Requirements.... 2
2. Additional Adjustments to Payment Units........ 3
3. Commercial Mobile Radio Service (CMRS) 5
Messaging Service................................
4. Local Multipoint Distribution Service (LMDS)... 6
5. International Bearer Circuits.................. 8
6. Regulatory Fees for Direct Broadcast Service 10
(DBS) Providers and Cable Television Operators...
7. Multichannel Video Distribution and Data 12
Service (MVDDS)..................................
8. Broadband Radio Service (BRS) / Educational 13
Broadband Service (EBS), (formerly MDS/MMDS and
ITFS)............................................
9. Regulatory Fees for AM and FM Construction 14
Permits..........................................
10. Clarification of Policies and Procedures...... 16
a. Ad Hoc Issues Concerning Our Regulatory Fee 16
Exemption Policies...........................
b. Regulatory Fee Obligations for Digital 23
Broadcasters.................................
c. Regulatory Fee Obligations for AM Expanded 24
Band Broadcasters............................
d. Effective Date of Payment of Multi-Year 26
Wireless Fees................................
11. Notification, Assessment and Collection of 27
Regulatory Fees..................................
a. Interstate Telecommunications Service 29
Providers (ITSPs)............................
b. Satellite Space Station Licensees.......... 31
c. Media Services Licensees................... 34
d. Cable Television Subscribers............... 36
B. FY 2005 Fee Determination and FY 2004 38
Reconsideration......................................
12. Commercial Mobile Radio Service (CMRS) 38
Providers........................................
III. Procedural Matters................................... 45
A. Payment of Regulatory Fees......................... 45
1. De Minimis Fee Payment Liability............... 45
2. Standard Fee Calculations and Payment Dates for 46
Annual Regulatory Fees...........................
3. Limitations on Credit Card Transactions........ 48
B. Enforcement........................................ 49
C. Congressional Review Act Analysis.................. 51
IV. Ordering Clauses...................................... 52
Attachments:
Attachment A Final Regulatory Flexibility Analysis
Attachment B Sources of Payment Unit Estimates for
FY2005
Attachment C Calculation of Revenue Requirements and
Pro-Rata Fees
Attachment D FY 2005 Schedule of Regulatory Fees
Attachment E Factors, Measurements, and Calculations
that Determine Station Contours and Population
Coverages
Attachment F List of Commenters
Attachment G FY 2004 Schedule of Regulatory Fees
------------------------------------------------------------------------
[[Page 41968]]
I. Introduction
1. In this Order, we conclude a proceeding to collect $280,098,000
in regulatory fees for Fiscal Year (FY) 2005. These fees are mandated
by Congress and are collected to recover the regulatory costs
associated with the Commission's enforcement, policy and rulemaking,
user information, and international activities.\2\ We also deny the
petition for reconsideration filed by Cingular Wireless LLC of the
Commission's FY 2004 Report and Order.\3\
---------------------------------------------------------------------------
\2\ 47 U.S.C. 159(a).
\3\ Assessment and Collection of Regulatory Fees for Fiscal Year
2004, Report and Order, 19 FCC Rcd 11,662 (2004) (FY 2004 Report and
Order); see infra paras. 38-41.
---------------------------------------------------------------------------
II. Discussion
A. Development of FY 2005 Fees
1. Calculation of Revenue and Fee Requirements
2. As explained below, we adjust our section 9 regulatory fees to
reflect the requirement to collect $280,098,000 in regulatory fees
during FY 2005. As described in the FY 2005 NPRM,\4\ this adjusted
amount is $7,140,000, or approximately 2.6 percent greater than the
$272,958,000 we were required to collect during the previous fiscal
year. Each fiscal year, the Commission proportionally allocates the
total amount that must be collected via regulatory fees. The results of
this calculation are contained in Attachment C.\5\ For FY 2005, this
allocation was done using FY 2004 revenues as a base. From this base, a
revenue amount for each fee category was calculated. Each fee category
was then adjusted upward by 2.6 percent to reflect the increase in
regulatory fees from FY 2004 to FY 2005. These FY 2005 amounts were
then divided by the number of payment units in each fee category to
determine the unit fee.\6\ In instances of small fees, such as licenses
that are renewed for a multiyear term, the resulting unit fee was also
divided by the term of the license. These unit fees were then rounded
to the nearest $5 or $25 in accordance with 47 U.S.C. 159(b)(2).
---------------------------------------------------------------------------
\4\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2005, Notice of Proposed Rulemaking, 70 FR at 9575, 9576, para.
5, (2005) (FY 2005 NPRM).
\5\ It is important to note that the required increase in
regulatory fee payments of approximately 2.6 percent in FY 2005 is
reflected in the revenue that is expected to be collected from each
service category. Because this expected revenue is adjusted each
year by the number of estimated payment units in a service category,
the actual fee itself is sometimes increased by a number other than
2.6 percent. For example, in industries where the number of units is
declining and the expected revenue is increasing, the impact of the
fee increase may be greater.
\6\ In most instances, the fee amount is a flat fee per licensee
or regulatee. However, in some instances the fee amount represents a
unit subscriber fee (such as for Cable, Commercial Mobile Radio
Service (CMRS) Cellular/Mobile and CMRS Messaging), a per unit fee
(such as for International Bearer Circuits), or a fee factor per
revenue dollar (Interstate Telecommunications Service Provider fee).
The payment unit is the measure upon which the fee is based, such as
a licensee, regulatee, subscriber, etc.
---------------------------------------------------------------------------
2. Additional Adjustments to Payment Units
3. In calculating the FY 2005 regulatory fees in Attachment D, we
further adjusted the FY 2004 list of payment units (Attachment B) based
upon licensee databases and industry and trade group projections.
Whenever possible, we verified these estimates from multiple sources to
ensure the accuracy of these estimates. In some instances, Commission
licensee databases were used, while in other instances, actual prior
year payment records and/or industry and trade association projections
were used in determining the payment unit counts.\7\ Where appropriate,
we adjusted and/or rounded our final estimates to take into
consideration variables that may impact the number of payment units,
such as waivers and/or exemptions that may be filed in FY 2005, and
fluctuations in the number of licensees or station operators due to
economic, technical or other reasons. Therefore, when we note that our
estimated FY 2005 payment units are based on FY 2004 actual payment
units, we may have rounded the number for FY 2005 or adjusted it
slightly to account for these variables.
---------------------------------------------------------------------------
\7\ The databases we consulted include, but are not limited to,
the Commission's Universal Licensing System (ULS), International
Bureau Filing System (IBFS), and Consolidated Database System
(CDBS). We also consulted industry sources including but not limited
to Television & Cable Factbook by Warren Publishing, Inc. and the
Broadcasting and Cable Yearbook by Reed Elsevier, Inc., as well as
reports generated within the Commission such as the Wireline
Competition Bureau's Trends in Telephone Service and the Wireless
Telecommunications Bureau's Numbering Resource Utilization Forecast
and Annual CMRS Competition Report. For additional information on
source material, see Attachment B.
---------------------------------------------------------------------------
4. We consider additional factors to determine regulatory fees for
AM and FM radio stations. These factors are facility attributes (class
of service and type (AM or FM) of service), as well as the population
served by the radio station. Calculating the population served for each
radio station is determined by coupling current U.S. Census Bureau data
with technical and engineering data, as detailed in Attachment E.
Consequently, the class and type of service, as well as the population
served, determine the regulatory fee amount to be paid.
3. Commercial Mobile Radio Service (CMRS) Messaging Service
5. In the FY 2005 NPRM, the Commission proposed to continue its
policy of maintaining the CMRS Messaging Service regulatory fee at the
rate calculated in FY 2003 and FY 2004 to avoid further contributing to
the financial hardships associated with a declining subscriber base.\8\
We received no comments or reply comments on this matter. Consequently,
we will maintain the CMRS Messaging Service regulatory fee at $0.08 per
subscriber.
---------------------------------------------------------------------------
\8\ See FY 2005 NPRM, 70 FR at 9576, para. 5.
---------------------------------------------------------------------------
4. Local Multipoint Distribution Service (LMDS)
6. In the FY 2004 proceeding, the Commission identified a
difference in treatment between LMDS Block A and Block B licensees for
the purposes of assessing section 9 regulatory fees. This difference
resulted in a disproportionately higher fee obligation on LMDS Block B
licenses when compared on a per-megahertz (MHz) basis.\9\ As a result,
in the FY 2005 NPRM, we proposed to amend the fee schedule and assess
LMDS regulatory fees on a flat MHz basis.\10\ We received two comments
on this proposal. These commenters oppose the proposal to collect LMDS
regulatory fees on a per-MHz basis, arguing that the Commission cannot
use a per-MHz regulatory fee for LMDS without using the same fee
methodology for the 24 GHz and 39 GHz services.\11\ We decline to adopt
a per-MHz fee methodology for LMDS at this
[[Page 41969]]
time, and we will therefore retain our existing methodology for
assessing LMDS fees for FY 2005.\12\
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\9\ FY 2004 Report and Order, 19 FCC Rcd 11,662, 11,669, para.
16. Block A licenses are authorized for 1150 MHz of spectrum, while
Block B licenses are authorized for 150 MHz of spectrum. Using the
authorized bandwidth for each license as the basis for comparison,
the Commission noted that the regulatory fee for Block B licenses in
FY 2004 was significantly higher on a per-MHz basis than the fee for
Block A licenses. On a per-MHz basis, Block B licensees, which are
authorized for 150 MHz in the 31,000-31,075/31,225-31,300 MHz bands,
paid regulatory fees equivalent to $1.80 per MHz ($270 divided by
150 MHz) in FY 2004, while Block A licensees, which are authorized
for 1150 MHz of spectrum, paid the equivalent $0.24 per MHz ($270
divided by 1150 MHz).
\10\ FY 2005 NPRM, 70 FR at 9577, para. 7. The Commission
proposed to set a per-MHz per unit fee of $0.44 for LMDS licensees,
and then multiply the unit fee by the amount of bandwidth authorized
for Block A and Block B licenses. As proposed, in FY 2005 the
regulatory fee amount for Block A licensees would have been $0.44
multiplied times 1150 MHz = $506, rounded to $505; while the amount
for Block B licensees would have been $0.44 multiplied times 150 MHz
= $66, rounded to $65.
\11\ Comments of XO Communications (XO), at 2-7; Comments of the
Law Firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast
(BMDDP), at 2-4.
\12\ However, we may revisit the per-MHz and other fee
methodologies in the future.
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7. The commenters also argued that LMDS should be reclassified for
fee assessment purposes as a microwave service.\13\ The Commission
determined in its FY 2003 fee proceeding that LMDS was developing on a
separate track from microwave services and that it should be moved into
a separate fee category.\14\ The Commission subsequently rejected
arguments to place LMDS in the microwave fee category in the FY 2004
Report and Order.\15\ XO and BMDDP have presented no new evidence or
arguments that would cause us to reconsider that decision. We find no
compelling reason to reclassify LMDS as a microwave service, which
would reduce the LMDS annual fee by more than 80 percent, and thereby
impose a disproportionate financial burden on fee payers in other
service categories. We therefore will maintain the existing regulatory
fee classification for LMDS for FY 2005.
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\13\ XO Comments at 2-5; BMDDP Comments at 4-5.
\14\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2003, Report and Order, 18 FCC Rcd 15,985, 15,989, at para. 9
(2003) (FY 2003 Report and Order).
\15\ FY 2004 Report and Order, 19 FCC Rcd at 11,669, para. 16.
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5. International Bearer Circuits
8. We decline to change or modify the methodology for assessing
regulatory fees for international carriers at this time. In the FY 2005
NPRM, we sought comment on possible changes to the regulatory fees
assessed on international carriers.\16\ Only three parties filed
comments and/or reply comments on this matter.\17\ The Commission
currently assesses regulatory fees on international carriers based on
the number of active international bearer circuits the carrier had the
previous year.\18\
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\16\ FY 2005 NPRM, 70 FR at 9577, 9578, paras. 11-17.
\17\ Tyco filed comments and reply comments, SIA filed comments
and Level 3 filed reply comments that addressed the international
bearer circuit issue. The parties generally argued that the current
methodology for assessing regulatory fees on the number of active
circuits favors older, lower capacity systems, and a fee system
based on cable landing licenses and international section 214
authorizations would be administratively simpler and provide an
incentive for carriers to initiate new services.
\18\ Regulatory fees for International Bearer Circuits are to be
paid by facilities-based common carriers that have active
international bearer circuits in any transmission facility for the
provision of service to an end user or resale carrier, which
includes active circuits to themselves or to their affiliates. In
addition, non-common carrier satellite operators must pay a fee for
each circuit sold or leased to any customer, including themselves or
their affiliates, other than an international common carrier
authorized by the Commission to provide U.S. international common
carrier services. Non-common carrier submarine cable operators are
also to pay fees for any and all international bearer circuits sold
on an indefeasible right of use (IRU) basis or leased to any
customer, including themselves or their affiliates, other than an
international common carrier authorized by the Commission to provide
U.S. international common carrier services. See Assessment and
Collection of Regulatory Fees for Fiscal Year 2001, MD Docket No.
01-76, Report and Order, 16 FCC Rcd 13525, 13593 (2001); Regulatory
Fees Fact Sheet: What You Owe--International and Satellite Services
Licensees for FY 2004 at 3 (rel. July 2004) (the fact sheet is
available on the FCC Web site at: https://hraunfoss.fcc.gov/edocs_
public/attachmatch/DOC-249904A4.pdf).
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9. We are not persuaded by these commenters that a significant
change to our section 9 regulatory fee assessment methodology for
international bearer circuits is warranted at this time, or that the
benefits of changing our assessment methodology outweigh the costs of
modifying our systems and processes at this time. We decline to adopt
the Tyco proposal to create a new, separate fee category for non-common
carrier cable landing licensees at this time.\19\ As a practical
matter, we note that we have at present no acceptable methodology for
allocating fee requirement between categories of payers.\20\ Even if we
had an acceptable methodology, we would not be able to undertake the
required analysis in time for FY 2005 fee payments and still comply
with the section 9(b)(3) notification requirement. Moreover, because
creating a new section 9 regulatory fee category would impact other
international carriers, we would want to address the issue of
regulatory fee payments by international carriers as a whole and not
make discrete changes for one category of payers at this time. In
addition, we conclude that Tyco's main concern is addressed by
modifying the section 9 regulatory fee for international bearer
circuits rather than creating an entirely new category of section 9
regulatory fees. To that end, we note that these fees have declined
substantially, due to increased capacity in the active circuit market:
The FY 2005 section 9 fee assessment of $1.37 per 64 kbps circuit is
just over half the $2.52 per 64 kbps circuit fee adopted for FY 2004,
and is 32% below the $2.01 per 64 kbps circuit proposed in the FY 2005
NPRM. For these reasons, we find that it would not be appropriate to
change the fee assessment for international carriers for FY 2005. We
note that in the FY 2005 NPRM, we stated that we would not implement
any changes to the bearer circuit fee assessment methodology for this
FY 2005 collection cycle.\21\
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\19\ Tyco Comments at 7-8. We may revisit this determination in
the regulatory fee proceeding for FY 2006.
\20\ Tyco proposes that the Commission use either employee or
employee-hour equivalents to establish the regulatory fee
requirements for non-common carrier cable landing licensees. Tyco
Comments at 23-25.
\21\ FY 2005 NPRM, 70 FR at 9578, para. 16.
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6. Regulatory Fees for Direct Broadcast Service (DBS) Providers and
Cable Television Operators
10. We decline to modify the FY 2005 regulatory fee assessment
methodology for DBS providers in response to the comments of the
National Cable and Telecommunications Association (NCTA) and American
Cable Association (ACA). NCTA argues that cable operators pay a
disproportionately larger amount of the Commission's regulatory fees as
compared to DBS providers, despite the fact that they are similarly
situated competitors.\22\ NCTA proposes that the Commission adopt the
same per-subscriber assessment for DBS operators that applies to cable
television operators. DirecTV, Inc. and Echostar Satellite L.L.C.
(DirecTV & Echostar), in joint reply comments, argue that the cable
operators have failed to make the required showing to satisfy the legal
standard in section 9 of the Act for changes to the Commission's
regulatory fee structure.\23\ DirecTV and Echostar further argue that
the costs to the Commission of regulating cable exceed those associated
with DBS.\24\
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\22\ Comments of NCTA at 4-8. See also ACA Comments at 2-3
(arguing that the difference in regulatory fee treatment increases
the burden on cable operators in small markets).
\23\ Reply Comments of DirectTV and Echostar at 3.
\24\ Id. at 5.
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11. We agree that the cable commenters have not made a compelling
argument, consistent with the standard set forth in section 9(b)(3) for
``permitted amendments'', to justify a change to the section 9
regulatory fees for DBS operators. Moreover, the Commission has not
provided notice for a change to the fee methodology for DBS operators.
However, the Commission may seek further information on this issue
during FY 2006 in order to fully explore whether there is a legal basis
for such a change and to analyze the impact of any change in the
methodology used to assess fees both for DBS providers and cable
television operators. Therefore, for FY 2005, we will continue to use
our current methodology for assessing regulatory fees for cable
television operators and DBS operators.
[[Page 41970]]
7. Multichannel Video Distribution and Data Service (MVDDS)
12. We decline to establish a MVDDS regulatory fee category at this
time. In our FY 2005 NPRM, we proposed that, since MVDDS licenses were
first awarded in 2004 and equipment is still under development, we
would not establish MVDDS as a new regulatory fee category in FY
2005.\25\ We received no comments or reply comments on this matter. We
therefore adopt our proposal and will not establish a MVDDS regulatory
fee category for FY 2005.
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\25\ FY 2005 NPRM, 70 FR at 9579, para. 21.
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8. Broadband Radio Service (BRS)/Educational Broadband Service (EBS)
(Formerly MDS/MMDS and ITFS)
13. We note that the BRS/EBS proceeding is currently pending.\26\
As we stated in the FY 2005 NPRM, we are exploring regulatory fee
assessment issues for BRS/EBS in that proceeding.\27\ To the extent we
adopt any changes to our regulatory fee rules in that proceeding, such
changes will not be effective in time for the FY 2005 regulatory fee
assessments. We expect to make any appropriate adjustments in the FY
2006 regulatory fee cycle or later.
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\26\ 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 et al., Report & Order and Further
Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14293-97 (2004)
(R&O and FNPRM).
\27\ FY 2005 NPRM, 70 FR at 9579, paras. 22-23.
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9. Regulatory Fees for AM and FM Construction Permits
14. At the inception of our regulatory fee program in FY 1994, the
regulatory fee amount for construction permits was set at an amount
that, when compared to licensed stations, was commensurate to the
limited nature of station operations under the terms of a construction
permit. However, since 1994, the amount of fees that we have been
directed to collect each year has steadily increased, while the number
of estimated payment units for these construction permits has steadily
decreased. This combination of increasing expected revenue and
decreasing payment units for these construction permits has resulted in
a regulatory unit fee that is higher than that of some licensed
stations.
15. To rectify this situation, we proposed to set the AM, FM, VHF,
and UHF construction permit fee to be no higher than the regulatory fee
associated with the lowest licensed station for that fee category,
noting that because there are unit and revenue variables in assessing
the per-unit regulatory fee, it may be necessary to make revenue
adjustments each fiscal year to keep the per unit regulatory fee for
construction permits at the level of the lowest licensed fee for AM,
FM, VHF, and UHF stations. We did not receive any comments or reply
comments on this matter. Therefore, beginning in FY 2005, we will hold
fee amounts for construction permits in each respective fee category
(e.g., AM, FM, VHF and UHF stations) to levels no higher than the
lowest fee amounts for licensed facilities in each respective fee
category, and if necessary, will make adjustments across only a narrow
group of media fee categories, such as AM, FM, VHF and UHF stations, to
keep the level of the lowest respective licensed fee.
10. Clarification of Policies and Procedures
a. Ad Hoc Issues Concerning Our Regulatory Fee Exemption Policies
16. Pursuant to 47 CFR 1.1162, the Commission does not establish
regulatory fees for applicants, permittees, and licensees who qualify
as government entities or non-profit entities. Despite the language of
47 CFR 1.1162, we still frequently encounter uncertainty and comments
from parties with respect to our fee exemption policies. In our FY 2005
NPRM, we proposed certain clarifications to our exemption policies.\28\
We received no comments or reply comments regarding our fee exemption
policies. Therefore, we will be incorporating these clarifications into
the text of the regulatory fee public notices that are generated each
year prior to the collection of regulatory fees.
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\28\ FY 2005 NPRM, 70 FR at 9579, 9580, paras. 26-30.
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17. Terminology: In the ensuing discussion, ``facility'' includes
``station'' and ``licensee'' includes ``permittee.'' ``October 1''
means the close of business on October 1, the first day of the
government fiscal year. ``Fee Due Date'' means the close of business on
the day determined to be the final date by which regulatory fees must
be paid. The Fee Due Date usually occurs in August or September. An
``Exempt Entity'' is a legal entity that is relieved of the burden of
paying annual regulatory fees.
18. Determination of Fee Code for a Facility: The fee code is
determined by the operational status of the facility as of October 1 of
each year. This involves factors such as whether the facility is in a
Construction Permit (CP) or Licensed status and a variety of other
factors. Every facility has a fee code.
19. Facility Changes During the Year: There is no prorating of
regulatory fees. For example, if a facility is in construction permit
status as of the close of business October 1, but a license is granted
on or after October 2, that facility is considered to be in
construction permit status for the entire year. Other facility changes
during the course of the year, such as technical changes, are treated
in the same manner.
20. Establishment of Exempt Status: State, local, and Federal
government agencies and IRS-certified not-for-profit entities are
generally exempt from payment of regulatory fees. The Commission
requires that each exempt entity have on file a valid IRS Determination
Letter or certification from a government authority documenting its
exempt status. In instances where there is a question regarding the
exempt status of an entity, the FCC may request, at any time, for the
entity to submit an IRS Determination Letter or certification from a
government authority that documents its exempt status.
21. Subsidiaries of Exempt Entities: The licensee of a facility may
be distinct from the ultimate owner. Exempt entities may hold one or
more licenses for media facilities directly and/or through
subsidiaries. Facilities licensed directly to an exempt entity and its
exempt subsidiaries are excused from the regulatory fee obligation.
However, licensees that are for-profit subsidiaries of exempt entities
are subject to regulatory fees regardless of the exempt status of the
ultimate owner.
Examples
A University owns a commercial facility whose profits are used to
support the University and/or its programs. If the facility is licensed
to the University directly, or to an exempt subsidiary of the
University, it is exempt from regulatory fees. If, however, the license
is held by a for-profit subsidiary, regulatory fees are owed, even
though the University is an exempt entity.
A state pension fund is the majority owner of a for-profit
commercial broadcasting firm. The facilities licensed to the for-profit
broadcasting firm would be subject to regulatory fees, even though it
is owned by an exempt agency.
22. Responsible Party, and the Effects of Transfers of Control: The
entity holding the license for a facility as of the Fee Due Date is
responsible for the regulatory fee for that facility. Eligibility for a
regulatory fee exemption is determined by the status of the licensee
[[Page 41971]]
as of the Fee Due Date, regardless of the status of any previous
licensee(s).
b. Regulatory Fee Obligations for Digital Broadcasters
23. In our FY 2005 NPRM, we noted that our current schedule of
regulatory fees does not include service categories for digital
broadcasters.\29\ Licensees in the broadcast industry pay regulatory
fees based on their analog facilities. For licensees that broadcast in
both the analog and digital formats, the only regulatory fee obligation
at the present time is for their analog facility. Moreover, a licensee
that has fully transitioned to digital broadcasting and has surrendered
its analog spectrum would have no regulatory fee obligation under the
current fee regime. We sought comment on whether to establish a
regulatory fee category for digital broadcasters, but received no
comments or reply comments on this matter.\30\ At this time, we will
maintain the regulatory fee obligation that applies only for the analog
facility.
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\29\ Id. at 9580, para. 31.
\30\ Id., para. 33.
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c. Regulatory Fee Obligations for AM Expanded Band Broadcasters
24. We do not require AM Expanded Band radio stations to pay
section 9 regulatory fees for their expanded band AM station at this
time. In the FY 2005 NPRM, we proposed to clarify this point and to
explain that licensees that operate a standard band AM station (540-
1600 kHz) that is linked to an AM Expanded Band station are subject to
regulatory fees for their standard band station only.\31\ We recognized
uncertainty about the regulatory fee status in the industry that
resulted from the fact that AM Expanded Band radio service is not among
the Commission's categories of general exemptions from regulatory fees
specified in the Commission's rules.\32\ We received no comments or
reply comments on this matter.
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\31\ Id., para. 34-36.
\32\ 47 CFR 1.1162.
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25. We will continue to refrain from requiring AM Expanded Band
radio stations to pay section 9 regulatory fees for their stations.
However, we note that our decision not to require section 9 regulatory
fee payments for AM Expanded Band stations is not a permanent exemption
from regulatory fees for AM Expanded Band Radio Service. Because the
movement to the expanded band is voluntary and helps to reduce
interference in the standard bandwidth, we will continue our policy of
not subjecting this relatively small group of stations to regulatory
fees. However, at some future point when the migration of standard band
broadcasters to the Expanded Band has advanced, we may consider
establishing Sec. 9 regulatory fee requirements for AM Expanded Band
stations.
d. Effective Date of Payment of Multi-Year Wireless Fees
26. The first eleven fee categories in our Attachment D, Schedule
of Regulatory Fees, constitute a general fee category known as multi-
year wireless fees. Regulatory fees for this category are generally
paid in advance, and for the amount of the entire 5-year or 10-year
term of the license. Because regulatory fees are paid at the time of
license renewal (or at the time of a new application), these fees can
be paid at any time during the fiscal year. As a result, there has been
some confusion as to the regulatory fee rate that should apply at the
time of license renewal. Current fiscal year regulatory fees generally
become effective 30 or 60 days after publication of the fees Order in
the Federal Register, or in some instances, 90 days after delivery of
the Order to Congress. Current procedures regarding the renewal of
multi-year wireless fees stipulate that licensees may submit their fee
payments no more than 90 calendar days prior to the expiration of their
licenses. The regulatory fee rate that applies at the time of renewal
(or at the time of an application for a new license) depends on the
date that payment is physically received within the 90 day period, and
how this date relates to the ``effective date'' of the current fiscal
year regulatory fees. Generally, the ``effective date'' of the current
fiscal year regulatory fees is published in our fee public notices soon
after the Order is released. If the renewal payment (or application of
a new license) is physically received before the ``effective date,''
the prior fiscal year regulatory fee rate applies. If the renewal
payment (or application of a new license) is physically received on or
after the ``effective date'', the current fiscal year regulatory fee
rate applies.
11. Notification, Assessment and Collection of Regulatory Fees
27. Each year, we generate public notices and fact sheets that
notify regulatees of the fee payment due date and provide additional
information regarding regulatory fee payment procedures. Accordingly,
in FY 2005, as in prior years, we will make available to all regulatees
these public notices, fact sheets and other relevant fee payment
information on our Web site at https://www.fcc.gov/fees/regfees.html. In
the event that regulatees do not have access to the Internet, we will
mail public notices and other relevant materials upon request.
Regulatees and the general public may request such information by
contacting the FCC CORES HelpDesk at (877) 480-3201, Option 4.
28. In addition to making the above information available on-line
for all of our regulatees, we proposed in our FY 2005 NPRM to send
specific regulatory fee assessments or bills by surface mail to
regulatees in a select group of fee categories.\33\ We are pursuing our
billing initiatives as part of our effort to modernize our financial
practices. Eventually, we may expand our billing initiatives to include
all regulatory fee service categories. For now, based on the results of
our assessment and billing initiatives from last year, and the
resources currently available to us, we will proceed with our various
FY 2005 initiatives as described below.
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\33\ FY 2005 NPRM, 70 FR at 9575, paras. 38-61. We clarify the
distinction between an assessment and a bill. An ``assessment'' is a
proposed statement of the amount of regulatory fees owed by an
entity to the Commission (or proposed subscriber count to be
ascribed for purposes of setting the entity's regulatory fee). An
assessment is not entered into the Commission's accounts receivable
system as a current debt. A ``bill'' is automatically entered into
our financial records as a debt owed to the Commission. Bills
reflect the amount owed and have a due date of the last day of the
fee payment window. Consequently, if a bill is not paid by the due
date, it becomes delinquent and is subject to our debt collection
procedures. See also 47 CFR 1.1161(c), 1.1164(f)(5), 1.1910.
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a. Interstate Telecommunications Service Providers (ITSPs)
29. In FY 2001, we began sending pre-completed FCC Form 159-W
assessments to carriers in an effort to assist them in paying the
Interstate Telecommunications Service Provider (ITSP) regulatory
fee.\34\ The fee amount on FCC Form 159-W was calculated from the FCC
Form 499-A report, which carriers are required to submit by April 1st
of each year. Throughout FY 2002 and FY 2003, we refined the FCC Form
159-W to simplify the regulatory fee payment process.\35\ In FY 2004,
we generated and mailed the same pre-completed FCC Form 159-W's to
carriers under the same dissemination procedures, but we informed them
that we will be treating the amount due on Form 159-W as a bill, rather
than as an
[[Page 41972]]
assessment. Other than the manner in which Form 159-W payments were
entered into our financial system, carriers experienced no procedural
changes regarding the use of the FCC Form 159-W when submitting payment
of their FY 2004 ITSP regulatory fees. In our FY 2005 NPRM, we sought
comment on this billing initiative and on ways to improve it.
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\34\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2001, Report and Order, 16 FCC Rcd 13525, at 13590, para. 67
(2001) (FY 2001 Report and Order). See also FCC Public Notice--
Common Carrier Regulatory Fees (August 3, 2001) at 4.
\35\ Beginning in FY 2002, the Form 159-W included a payment
section that allowed carriers the opportunity to send in Form 159-W
in lieu of completing Form 159 Remittance Advice Form.
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30. We received no comments or reply comments on our ITSP billing
initiative for FY 2005. We will continue our ITSP, Form 159-W, billing
initiative in FY 2005.
b. Satellite Space Station Licensees
31. In FY 2004, for the first time, we mailed regulatory fee bills
through surface mail to all licensees in our two satellite space
station service categories. Specifically, geostationary orbit space
station (``GSO'') licensees received bills for their operational
satellites; \36\ and non-geostationary orbit space station (``NGSO'')
licensees received bills for their systems.\37\ In our FY 2005 NPRM, we
proposed to continue our billing initiative for our GSO and NGSO
satellite space station categories. We sought comment on this proposal
and received comments from the Satellite Industry Association
(``SIA'').
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\36\ ``Satellites'' are in operation on the first day of the
fiscal year and not co-located with and technically identical to
another operational satellite (i.e., not functioning as a spare
satellite) on the first day of the fiscal year.
\37\ ``Systems'' are licensed by the Commission and operational
on the first day of the fiscal year.
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32. SIA states that its members experienced a wide range of
problems with our billing system in FY 2004. For example, in some cases
licensees did not receive a pre-printed bill for all of their space
stations.\38\ Several satellite operators report that they received
bills that substantially undercounted the number of space stations for
which they owed fees. However, the bills that were issued in FY 2004
lacked call sign information, making it impossible for most operators
to determine which satellites were missing from their bills. SIA
offered suggestions for improving the process.\39\
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\38\ SIA Comments at 11.
\39\ Id. Specifically, SIA suggests: (1) Licensees should be
issued a single bill that lists all the space stations for which the
Commission believes the licensee owes fees; (2) call signs should be
included on bills so that licensees can verify the accuracy of the
billing information; (3) procedures should be in place to permit a
bill to be modified or supplemented if it is incorrect; (4) bills
should be mailed well in advance of the payment deadline so that
licensees have a reasonable period to review the bill, seek
additional information, if needed, and correct any errors prior to
the payment due date; and (5) the Commission staff members who are
knowledgeable about satellite licensing should be available to
assist licensees by answering questions and resolving problems.
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33. We have modified our Fee Filer online payment system so that it
will address most of SIA's suggested corrective measures.\40\ We will
address SIA's other suggestions by generating and mailing the bills at
the earliest allowable date after this FY 2005 Order becomes effective.
We will also ensure that we will have knowledgeable staff available to
assist licensees with their billing questions and to resolve any bill
disputes.
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\40\ Although the process of mailing one bill per space station
will continue unchanged, Fee Filer will automatically find and
consolidate all regulatory fees which have been billed, based upon
FCC Registration Number (FRN) and password entered. Information that
describes each individual fee will include FRN, call sign, and the
fee amount. This information will be subject to review by the Fee
Filer user, who can then make modifications, deletions or additions
online. After the user confirms the details of each fee, he/she may
print a one-page Remittance Voucher which is to accompany the
payment. The one-page Remittance Voucher will reflect the total
payment and the detail applicable to that summary payment.
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c. Media Services Licensees
34. In our FY 2005 NPRM, we proposed that we would continue to
generate regulatory fee assessment postcards for media services
following the same procedures we used in FY 2004. We noted that we mail
the postcards on a per-facility basis and that they serve to provide
parties with the fee payment due date and the assessed fee amount for
the facility (as well as the data attributes that were used to
determine the amount).\41\ We received no comments or reply comments on
our proposal. We will continue our assessment initiative for media
services entities as we originally proposed. Specifically, we will mail
a single round of postcards to licensees and their other known points
of contact in our Consolidated Database System (CDBS) and Commission
Registration System (CORES)--our two official databases for media
services. By doing so, licensees and their points of contact will all
be furnished with the same fee information for the facility in
question. The postcards will direct parties to a Commission-authorized
Web site to update or correct fee information regarding the facility,
or to certify their fee-exempt status if need be.\42\ The postcards
will also provide the telephone number of our FCC CORES Help Desk at
(877) 480-3201, Option 4, in the event that parties need additional
assistance.
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\41\ Fee assessments were issued for AM and FM Radio Stations,
AM and FM Construction Permits, FM Translators/Boosters, VHF and UHF
Television Stations, VHF and UHF Television Construction Permits,
Satellite Television Stations, Low Power Television (LPTV) Stations,
and LPTV Translators/Boosters. Fee assessments were not issued for
broadcast auxiliary stations, nor will they be issued for them in FY
2005.
\42\ The Commission-authorized Web site will be available on-
line throughout this summer. The site's Web address is https://
www.fccfees.com.
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35. We emphasize that parties must still submit a completed Form
159 with their fee payment, despite having received an assessment
postcard. The postcards are not to be used as a substitute for
completing a Form 159. We cannot guarantee that a party's regulatory
fees will be posted accurately against its account if a completed Form
159 is not returned with the fee payment. We also emphasize that the
facility ID is the most important data element that parties need to
include on their completed Form 159. The facility ID is a unique
identifier that never changes over the course of a facility's existence
(unlike its call sign). We prominently display each facility's facility
ID on its assessment postcard, and our Form 159 filing instructions
require that each facility's facility ID (and call sign) needs to be
provided. However, each year we typically receive many incomplete Form
159s that do not provide the facility ID of the facility whose fee is
being paid.
d. Cable Television Subscribers
36. We adopt our proposal to generate fee assessment letters for
cable operators who are on file as having paid FY 2004 regulatory fees
for their basic cable subscribers.\43\ We received no comments or reply
comments on this issue. Under our proposal, our assessment letter to
each operator would announce the due date for payment of FY 2005
regulatory fees; reflect the subscriber count for which the operator
paid FY 2004 regulatory fees; and request that the operator access a
Commission-authorized Web site to provide its aggregate count of basic
cable subscribers as of December 31, 2004--the date that cable
operators are to use as the basis for determining their regulatory fee
obligations for basic cable subscribers. If the number of subscribers
as of December 31, 2004 differs from the number paid for FY 2004,
operators would be required to provide a brief explanation for the
differing subscriber counts and indicate when the difference occurred.
Cable operators who do not have access to the Internet would be able to
contact the FCC CORES Help Desk at (877) 480-3201, Option 4, to provide
their subscriber count as of
[[Page 41973]]
December 31, 2004. Payment procedures for FY 2005 regulatory fees are
the same as they were in previous years. For example, cable operators
are to complete the FCC Form 159 Remittance Advice when making their
payment, and are to certify their December 31, 2004 subscriber count in
Block 30 of the Form 159.
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\43\ FY 2005 NPRM, 70 FR at 9583, para. 57.
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37. We also sought comment on a proposal to require the cable
television operators to annually report their basic subscriber counts
to the Commission prior to paying regulatory fees for the fiscal year
in question.\44\ The Commission proposed to use the reported subscriber
counts to audit regulatory fee payments that are collected later in the
fiscal year. NCTA was the only commenter on this proposal. NCTA agreed
that a June 1st reporting requirement could be met with accurate
subscriber information from the previous year and would not be unduly
burdensome for operators to file.\45\ We do not adopt a subscriber
reporting requirement at this time. We will continue to assess our need
for information to manage the regulatory fee assessment program and may
revisit this issue in the future.
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\44\ Id., paras. 60-61.
\45\ NCTA Comments at 2.
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B. FY 2005 Fee Determination and FY 2004 Reconsideration
12. Commercial Mobile Radio Service (CMRS) Providers
38. In this section, we address the arguments presented by Cingular
and CTIA in their comments to the FY 2005 NPRM. In addition, we address
Cingular's petition for reconsideration of the Commission's FY 2004
Report and Order and the comments filed in response to Cingular's
petition.\46\
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\46\ See Cingular Wireless LLC Petition for Reconsideration, MD
Docket No. 04-73, filed Aug. 6, 2004 (Cingular Petition). We
received comments in support of the Cingular Petition from CTIA--The
Wireless AssociationTM (CTIA) and joint comments from
seven wireless carriers (American Cellular Corporation, AT&T
Wireless Services, Inc., Dobson Cellular Systems, Inc., Nextel
Communications, Inc., Sprint Corporation, T-Mobile USA, Inc., and
Western Wireless Corporation) (Wireless Carriers). We also received
reply comments in support of the petition from the Rural
Telecommunications Group, Inc. (RTG).
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39. Prior to FY 2004, the Commission relied on Cellular, PCS, and
SMR providers to compute and submit the regulatory fee applicable to
them based on the number of their subscribers. Beginning in fiscal year
2004, the Commission decided to take an alternative approach and
adopted a system of mailing assessments to Cellular, PCS, and SMR
providers based on subscriber data contained in their Numbering
Resource Utilization Forecast (NRUF) reports.\47\ NRUF data is
collected by the North American Numbering Plan Administrator (NANPA) to
monitor the utilization of telephone numbers by carriers. For purposes
of assessing regulatory fees, the Commission uses the count of
``assigned'' telephone numbers (TN's) \48\ stated by carriers in their
NRUF reports (adjusted for porting).\49\ For carriers not required to
file NRUF reports, the self-computation method still applies.\50\
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\47\ FY 2004 Report and Order, 19 FCC Rcd at 11,675-76 para. 45.
\48\ ``Assigned'' numbers are ``numbers working in the Public
Switched Telephone Network under an agreement such as a contract or
tariff at the request of specific end users or customers for their
use, or numbers not yet working but having a customer service order
pending.'' Instructions for Utilization and Forecast Forms, FCC Form
502 (Jun. 2003).
\49\ The porting information is developed from the telephone
number porting database managed by the Local Number Portability
Administrator, NeuStar, Inc.
\50\ FY 2004 Report and Order, 19 FCC Rcd at 11,677 para. 49.
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40. We disagree with the arguments of Cingular, CTIA, and others
that the NRUF data are not sufficiently accurate for the purpose of
assessing regulatory fees for the three classes of Commercial Mobile
Radio Service (CMRS) providers--the Cellular Radiotelephone Service,
the Personal Communications Service (PCS), and the Specialized Mobile
Radio (SMR) Service. Evidence of the accuracy and reliability of the
NRUF data can be found in the fact that while the initial FY 2004
assessment letters calculated regulatory fees based on approximately
162.36 million numbers, the reconciliation process, based on provider
responses, revised the regulatory fee assessment by only 1.4 percent
(to 160.02 million numbers). Further evidence of the reliability of the
NRUF data is that in FY 2004, we issued 127 initial assessment letters
to CMRS providers. Only 3.2 percent of the respondents had adjustments
of greater than 5,000 subscribers but less than 20,000; and only 5.5
percent had adjustments of greater than 20,000 subscribers. This
experience indicates that NRUF data is sufficiently reliable and
accurate for the purposes of assessing section 9 regulatory fees. We
therefore reject Cingular's request to reconsider the use of NRUF data
in calculating FY 2004 fees for these three classes of CMRS carriers.
We will also continue to rely on the NRUF data for the FY 2005
regulatory fee assessments for these carriers.
41. Further, we find no basis for the assertion in Cingular's
petition that a lack of clarity in the NRUF definition of
``intermediate'' TN's (number made available for use by another
telecommunications carrier or non-carrier entity) unduly complicates
the correction process and makes the NRUF data unreliable.\51\ The
Commission's fee assessment is based only on the number of ``assigned''
TN's stated in the NRUF report. Thus, to the extent that a carrier
categorizes TN's as ``intermediate,'' it has no need to make a
correction.
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\51\ Cingular Petition at 4-5.
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42. These facts suggest that using NRUF data has not led to
inaccurate or unfair assessments for CMRS providers. They also
demonstrate that the Commission has a method to address and correct for
potential anomalies that the NRUF data may implicate. We therefore
disagree with Cingular and others that using NRUF data, combined with
the reconciliation process, may result in overpayment of regulatory
fees.\52\ In fact, using NRUF data, which is subject to verification,
will likely produce more accurate assessments than the self-assessment
method the Commission previously used. Our experience in FY 2004
indicates that--far from being overly burdensome--this process offers
CMRS providers an opportunity to correct potential errors in their data
for section 9 regulatory fee assessment purposes.\53\
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\52\ Cingular Petition at 3, 5-6.
\53\ Cingular Petition at 5-6. See also CTIA Comments at 3.
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43. We also reject the arguments of Cingular and others that the
two-step process that we established in the FY 2004 Report and Order--
sending an initial assessment letter, which a CMRS provider may
correct, followed by a final assessment letter--is unduly
burdensome.\54\ Cingular maintains that the correction process
contemplates a burdensome number-by-number reconciliation of the NRUF
data and a carrier's actual subscriber count. We clarify that carriers
are not required to perform number-by-number reconciliations when
making corrections. Carriers may make corrections on an aggregate
basis. We will review the letters, and decide whether to accept the
revised totals. Based upon this feedback, we will send out a second
assessment letter that will coincide with the payment period of
regulatory fees. This second assessment letter with aggregate totals
will constitute the basis upon which FY 2005 regulatory fees will be
paid. If we receive no response to our initial assessment letter within
21 days, we will assume that no corrections are required and the final
assessment letter, which is mailed approximately 30 days
[[Page 41974]]
after the initial letter, will base the fee payment due on the number
of subscribers listed on the initial assessment. In response to
Cingular's questions as to whether the Commission intends to allow
carriers to correct so-called ``contaminated numbers'' (numbers used by
a thousands-block carrier before donating the remainder of the block to
the pool),\55\ we clarify that carriers are permitted to address
``contaminated numbers.'' Paragraph 46 of the FY 2004 Report and Order
specifically links the correction process with the problem of
``contaminated numbers.'' To the extent that paragraph 46 of the FY
2004 Report and Order does not unequivocally provide that carriers may
correct the initial assessment letter to account for ``contaminated
numbers,'' we hereby clarify that they may do so.
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\54\ Cingular Petition at 5-6.
\55\ Cingular Petition at 3.
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44. We will continue to use the two-step process for assessing
section 9 regulatory fees on CMRS providers as proposed in the FY 2005
NPRM.\56\ Specifically, we will continue to mail an initial regulatory
fee assessment to CMRS providers based on information they submit on
their NRUF forms. The initial assessment letter will include a list of
the carriers' Operating Company Numbers (OCNs), and an aggregate total
of assigned numbers (adjusted for porting) upon which the assessment is
based.\57\ If the number of subscribers on the initial assessment
letter differs from the data included on their NRUF forms, CMRS
providers may amend their initial assessment letter to identify their
subscriber count as of December 31, 2004.
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\56\ See FY 2005 NPRM, 70 FR at 9579, para. 51-52.
\57\ Additionally, paragraph 48 of the FY 2004 Report and Order
indicates that ``[i]f some subscribers are no longer customers, but
have been assigned to another company, please indicate the company
which has acquired these subscribers.'' Cingular suggests that it is
unnecessary to report numbers because the Commission already takes
ported numbers into account using the LNP database. Cingular
Petition at 3. We agree with Cingular that it is generally
unnecessary to correct ported numbers.
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III. Procedural Matters
A. Payment of Regulatory Fees
1. De Minimis Fee Payment Liability
45. As in the past, regulatees whose total FY 2005 regulatory fee
liability, including all categories of fees for which payment is due,
amounts to less than $10 will be exempted from payment of FY 2005
regulatory fees.
2. Standard Fee Calculations and Payment Dates for Annual Regulatory
Fees
46. The responsibility for payment of annual regulatory fees by
service category is as follows: \58\
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\58\ Note that regulatees in the service categories that are
shaded in grey in Attachment D do not pay annual regulatory fees. We
collect regulatory fees from these entities in advance to cover the
term of license. Fee payments from these entities are submitted
along with their initial authorization or renewal application when
that application is filed.
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(a) Media Services: The responsibility for the payment of
regulatory fees rests with the holder of the permit or license as of
October 1, 2004. However, in instances where a license or permit is
transferred or assigned after October 1, 2004, responsibility for
payment rests with the holder of the license or permit at the time
payment is due.
(b) Wireline (Common Carrier) Services: Fees must be paid for any
authorization issued on or before October 1, 2004. However, where a
license or permit is transferred or assigned after October 1, 2004,
responsibility for payment rests with the holder of the license or
permit at the time payment is due.
(c) Wireless Services: Commercial Mobile Radio Service (CMRS)
cellular, mobile, and messaging services (fees based upon a subscriber,
unit or circuit count): Fees must be paid for any authorization issued
on or before October 1, 2004. The number of subscribers, units or
circuits on December 31, 2004 will be used as the basis from which to
calculate the fee payment.
(d) Multichannel Video Programming Distributor Services (basic
cable television subscribers and CARS licenses): The number of
subscribers on December 31, 2004 will be used as the basis from which
to calculate the fee payment.\59\ For CARS licensees, fees must be paid
for any authorization issued on or before October 1, 2004. The
responsibility for the payment of regulatory fees for CARS licenses
rests with the holder of the permit or license on October 1, 2004.
However, in instances where a CARS license or permit is transferred or
assigned after October 1, 2004, responsibility for payment rests with
the holder of the license or permit at the time payment is due.
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\59\ Cable television system operators should compute their
basic subscribers as follows: Number of single family dwellings +
number of individual households in multiple dwelling unit
(apartments, condominiums, mobile home parks, etc.) paying at the
basic subscriber rate + bulk rate customers + courtesy and free
service customers. 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 2004, rather than on a count as of
December 31, 2004.
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(e) International Services: For earth stations and geostationary
orbit space stations, payment is calculated on a per operational
station basis. For non-geostationary orbit satellite systems, payment
is calculated on a per operational system basis. The responsibility for
the payment of regulatory fees rests with the holder of the permit or
license on October 1, 2004. However, in instances where a license or
permit is transferred or assigned after October 1, 2004, responsibility
for payment rests with the holder of the license or permit at the time
payment is due. For international bearer circuits, payment is
calculated on a per active circuit basis as of December 31, 2004.
47. We strongly recommend that entities who will be submitting more
than twenty-five (25) Form 159-C's use the electronic Fee Filer program
when sending their regulatory fee payment. We will, for the convenience
of payers, accept fee payments made in advance of the normal formal
window for the payment of regulatory fees.
3. Limitations on Credit Card Tran
