Assessment and Collection of Regulatory Fees for Fiscal Year 2007, 45908-45937 [E7-15607]

Download as PDF 45908 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. As required by section 3 of Executive Order 12988 (61 FR 4729, February 7, 1996), in issuing this rule, the EPA has taken the necessary steps to eliminate drafting errors and ambiguity, minimize potential litigation, and provide a clear legal standard for affected conduct. The EPA has complied with Executive Order 12630 (53 FR 8859, March 15, 1988) by examining the takings implications of the rule in accordance with the ‘‘Attorney General’s Supplemental Guidelines for the Evaluation of Risk and Avoidance of Unanticipated Takings’’ issued under the Executive Order. This rule does not impose an information collection burden under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. The EPA will submit a report containing this document and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication in the Federal Register. A major rule cannot take effect until 60 days after it is published in the Federal Register. This action is not a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). This action will be effective October 15, 2007. List of Subjects in 40 CFR Part 271 Environmental protection, Administrative practice and procedure, Confidential business information, Hazardous materials transportation, Hazardous waste, Indians—lands, Intergovernmental relations, Penalties, Reporting and recordkeeping requirements. Authority: This action is issued under the authority of sections 2002(a), 3006, and 7004(b) of the Solid Waste Disposal Act as amended 42 U.S.C. 6912(a), 6926, 6974(b). Dated: July 25, 2007. Lawrence E. Starfield, Acting Regional Administrator, Region 6. [FR Doc. 07–4001 Filed 8–15–07; 8:45 am] BILLING CODE 6560–50–M FEDERAL COMMUNICATIONS COMMISSION SUMMARY: In this document, we amend our Schedule of Regulatory Fees to collect $290,295,160 in regulatory fees for Fiscal Year (FY) 2007, pursuant to section 9 of the Communications Act of 1934, as amended (the Act). These fees are mandated by Congress and are collected to recover the regulatory costs associated with the Commission’s enforcement, policy and rulemaking, user information, and international activities. Effective September 17, 2007, except that changes to the Schedule of Regulatory Fees made pursuant to section 9(b)(3) of the Communications Act, and incorporating regulatory fee payment obligations for interconnected VoIP service providers, shall become effective November 15, 2007, which is 90 days from date of notification to Congress. DATES: 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: 47 CFR Part 1 [MD Docket No. 07–81; FCC 07–140] Assessment and Collection of Regulatory Fees for Fiscal Year 2007 Federal Communications Commission. ACTION: Final rule. AGENCY: Adopted: August 2, 2007. Released: August 6, 2007. By the Commission: Commissioner Copps approving in part, concurring in part and issuing a statement; Commissioner Adelstein concurring and issuing a statement. Table of Contents mstockstill on PROD1PC66 with RULES Heading I. Introduction ......................................................................................................................................................................................... II. Report and Order ............................................................................................................................................................................... A. FY 2007 Regulatory Fee Assessment Methodology ................................................................................................................. 1. Development of FY 2007 Regulatory Fees ......................................................................................................................... a. Calculation of Revenue and Fee Requirements .......................................................................................................... b. Additional Adjustments to Payment Units ................................................................................................................. 2. Commercial Mobile Radio Service Messaging Service ...................................................................................................... 3. International Bearer Circuits ............................................................................................................................................... 4. Interconnected Voice over Internet Protocol Service Providers ....................................................................................... 5. Private Land Mobile Radio Service .................................................................................................................................... B. Administrative and Operational Issues ..................................................................................................................................... 1. Use of Fee Filer .................................................................................................................................................................... 2. Proposals for Notification and Collection of Regulatory Fees .......................................................................................... a. Interstate Telecommunications Service Providers ...................................................................................................... b. Satellite Space Station Licensees ................................................................................................................................. c. Media Services Licensees ............................................................................................................................................. d. Commercial Mobile Radio Service Cellular and Mobile Services Assessments ...................................................... e. Cable Television Subscribers ....................................................................................................................................... III. Procedural Matters ............................................................................................................................................................................ A. Payment of Regulatory Fees ...................................................................................................................................................... 1. De Minimis Fee Payment Liability ..................................................................................................................................... 2. Standard Fee Calculations and Payment Dates .................................................................................................................. B. Enforcement ................................................................................................................................................................................ C. Final Paperwork Reduction Act of 1995 Analysis ................................................................................................................... D. Congressional Review Act Analysis .......................................................................................................................................... IV. Ordering Clauses .............................................................................................................................................................................. Attachments Attachment A—Final Regulatory Flexibility Analysis Attachment B—Sources of Payment Unit Estimates for FY 2007 Attachment C—Calculation of Revenue Requirements and Pro-Rata Fees VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\16AUR1.SGM 16AUR1 Paragraph number 1 4 4 5 5 6 8 10 11 21 24 25 28 31 33 35 37 43 46 46 46 47 48 50 51 52 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations Attachment Attachment Attachment Attachment Attachment D—FY 2007 Schedule of Regulatory Fees E—Factors, Measurements, and Calculations that Determine Station Contours and Population Coverages F—FY 2006 Schedule of Regulatory Fees G—List of Commenters H—Rule Changes I. Introduction 1. In this Report and Order and Further Notice of Proposed Rulemaking, we conclude a proceeding to collect $290,295,160 in regulatory fees for Fiscal Year (‘‘FY’’) 2007, pursuant to section 9 of the Communications Act of 1934, as amended (the ‘‘Act’’). Section 9 regulatory fees are mandated by Congress and are collected to recover the regulatory costs associated with the Commission’s enforcement, policy and rulemaking, user information, and international activities.1 The Further Notice of Proposed Rulemaking (‘‘FNPRM’’) seeks comment on the appropriate fee structure for Broadband Radio Service (‘‘BRS’’). 2. We retain the established methods, policies, and procedures for collecting section 9 regulatory fees adopted by the Commission in prior years. We have found that the assessment methodology adopted in prior regulatory fee cycles has provided a satisfactory means for collecting the Commission’s annual appropriations. In addition to the assessment methodology, we retain and enhance our administrative measures used for notification and assessment of regulatory fees as in previous years, such as generating bills and precompleted assessment notifications for certain regulatees. Beginning this year, we expand our billing efforts to include licensees of earth stations and cable television relay service (‘‘CARS’’) stations. We will also apply regulatory fee obligations to interconnected Voice over Internet Protocol (‘‘VoIP’’) providers. Finally, we wish to take this opportunity to strongly encourage regulatees to electronically file their FY 2007 regulatory fee payments via Fee Filer. 3. The Commission is obligated to collect $290,295,160 in regulatory fees during FY 2007 to fund the Commission’s operations. Consistent with our established practice, we intend to collect these regulatory fees during a filing window in September 2007 in order to collect the required amount by the end of our fiscal year. mstockstill on PROD1PC66 with RULES II. Report and Order A. FY 2007 Regulatory Fee Assessment Methodology 4. On April 18, 2007, we released a Notice of Proposed Rulemaking seeking 1 47 45909 U.S.C. 159(a). VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 comment on regulatory fee issues.2 As noted in the FY 2007 NPRM, the section 9 regulatory fee proceeding is an annual rulemaking process intended to ensure the Commission collects the fee amount required by Congress each year. In the FY 2007 NPRM, we proposed to largely retain the section 9 regulatory fee methodology used in the prior fiscal year. We received ten comments and six reply comments.3 We address the issues raised in our FY 2007 NPRM below. 1. Development of FY 2007 Regulatory Fees a. Calculation of Revenue and Fee Requirements 5. In our FY 2007 regulatory fee assessment, we use essentially the same section 9 regulatory fee assessment methodology adopted for FY 2006. Each fiscal year, the Commission proportionally allocates the total amount that must be collected via section 9 regulatory fees. The results of our FY 2007 regulatory fee assessment methodology (including a comparison to the prior year’s results) are contained in Attachment C. For FY 2007, we will use the FY 2006 congressionally mandated amount as the basis for calculating the unit fees for each fee category. To collect the $290,295,160 required by law, we adjust the FY 2006 amount downward by approximately 2.84 percent.4 Consistent with past practice, we then divide the FY 2007 amount by the number of payment units in each fee 2 See Assessment and Collection of Regulatory Fees for Fiscal Year 2007, Notice of Proposed Rulemaking, 22 FCC Rcd 7975 (2007) (‘‘FY 2007 NPRM’’). 3 See Attachment G for the list of commenters and abbreviated names. 4 The percentage decrease of approximately 2.84 percent is based on the total amount of regulatory fees that was mandated by Congress to be collected in FY 2006, which included an amount of $288,771,000 in regulatory fees pursuant to section 9 of the Act and an additional $10,000,000 as required by section 3013 of the Deficit Reduction Act (Pub. L. 109–171). Together, the total amount of regulatory fees mandated by Congress to be collected in FY 2006 was $298,771,000. Also, the decrease in regulatory fee payments of approximately 2.84 percent in FY 2007 is reflected in the revenue that is expected to be collected from each service category. Because this expected revenue is adjusted for each individual service category each year by the number of estimated payment units in a service category, and then adjusted for rounding, the actual fee will likely differ by an amount more or less than 2.84 percent. For example, in industries where the number of payment units is declining, the per-unit regulatory fee amount for FY 2007 may actually be more than the amount for FY 2006. PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 category to determine the unit fee.5 As in prior years, for cases involving small fees (e.g., licenses that are renewed over a multiyear term), we divide the resulting unit fee by the term of the license, and then round these unit fees consistent with the requirements of section 9(b)(2). b. Additional Adjustments to Payment Units 6. In calculating the FY 2007 regulatory fees listed in Attachment D, we further adjusted the FY 2006 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.6 Where appropriate, we adjusted and rounded our final estimates to take into consideration events that may impact the number of units for which regulatees submit payment, such as waivers and exemptions that may be filed in FY 2007, and fluctuations in the number of licensees or station operators due to economic, technical, or other reasons. Therefore, when we state that our estimated FY 2007 payment units are based on FY 2006 actual payment units, the number may have been rounded or 5 In many instances, the regulatory fee amount is a flat fee per licensee or regulatee. However, in some instances the fee amount represents a per-unit fee (such as for International Bearer Circuits), a perunit subscriber fee (such as for Cable, Commercial Mobile Radio Service (‘‘CMRS’’) Cellular/Mobile and CMRS Messaging), or a fee factor per revenue dollar (Interstate Telecommunications Service Provider fee). The payment unit is the measure upon which the fee is based, such as a licensee, regulatee, subscriber fee, etc. 6 The databases we consulted include, but are not limited to, the Commission’s Universal Licensing System (ULS), International Bureau Filing System (‘‘IBFS’’), Consolidated Database System (‘‘CDBS’’) and Cable Operations and Licensing System (‘‘COALS’’). We also consulted industry sources including, but not limited to, Television & Cable Factbook by Warren Publishing, Inc. and the Broadcasting and Cable Yearbook by Reed Elsevier, Inc., as well as reports generated within the Commission such as the Wireline Competition Bureau’s Trends in Telephone Service and the Wireless Telecommunications Bureau’s Numbering Resource Utilization Forecast and Annual CMRS Competition Report. For additional information on source material, see Attachment B. E:\FR\FM\16AUR1.SGM 16AUR1 45910 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations adjusted slightly to account for these variables. 7. We consider additional factors in determining regulatory fees for AM and FM radio stations. These factors are facility attributes and the population served by the radio station. The calculation of the population served is determined by coupling current U.S. Census Bureau data with technical and engineering data, as detailed in Attachment E. Consequently, the population served, as well as the class and type of service (AM or FM), determines the regulatory fee amount to be paid.7 2. Commercial Mobile Radio Service Messaging Service 8. In the FY 2007 NPRM, we proposed to continue our policy of maintaining the CMRS Messaging Service regulatory fee at the rate that was established in FY 2002 (i.e., $0.08 per subscriber), noting that the subscriber base in this industry has declined 79 percent from 40.8 million to 8.3 million from FY 1997 to FY 2006.8 The only commenters addressing this issue, AAPC and USA Mobility, state that maintaining the fee amount at $0.08 per subscriber is the minimum action to take and that the Commission should consider reducing the fee amount.9 9. We continue to believe that maintaining the CMRS Messaging regulatory fee at the rate established in FY 2002, rather than allowing it to increase, is the appropriate level of relief to be afforded to the messaging industry. We are cognizant of the financial hardship that could be caused by increasing the fee (shrinking profit margins, additional loss of subscribers, reduced revenue, etc.) for this service category. Therefore, we adopt our proposal to maintain the CMRS Messaging Service regulatory fee for FY 2007 at $0.08 per subscriber. mstockstill on PROD1PC66 with RULES 3. International Bearer Circuits 10. In our FY 2006 NPRM,10 we noted that VSNL Telecommunications (US) 7 In addition, beginning in FY 2005, we established a procedure by which we set regulatory fees for AM and FM radio and VHF and UHF television Construction Permits each year at an amount no higher than the lowest regulatory fee in that respective service category. For example, the regulatory fee for a Construction Permit for an AM radio station will never be more than the regulatory fee for an AM Class C radio station serving a population of less than 25,000. 8 See FY 2007 NPRM, 22 FCC Rcd at 7978, para 7. 9 AAPC Comments at 1; USA Mobility Comments at 3. No commenters opposed our proposal. 10 See Assessment and Collection of Regulatory Fees for Fiscal Year 2006, MD Docket No. 06–68, Notice of Proposed Rulemaking, 21 FCC Rcd 3708, 3718, n.20 (2006) (‘‘FY 2006 NPRM’’). VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 Inc. (‘‘VSNL’’) had filed a Petition for Rulemaking urging the Commission to revise its regulatory fee methodology for bearer circuits; 11 and that we issued a Public Notice designating the proceeding as RM–11312 and requesting comment on the Petition.12 We stated in our FY 2006 Report and Order that the issues presented in the Petition warrant consideration separately from the Commission’s annual regulatory fee proceeding.13 In our FY 2007 NPRM, we received a set of joint comments filed by seven submarine cable landing licensees urging the Commission to take similar action.14 We reiterate that the issues presented in the Petition warrant consideration separately from the Commission’s annual regulatory fee proceeding.15 4. Interconnected Voice Over Internet Protocol Service Providers 11. In the FY 2007 NPRM, we observed that providers of interconnected VoIP 16 services are now required to contribute to the Universal Service Fund (‘‘USF’’) 17 and we tentatively concluded that the interconnected VoIP providers should also pay regulatory fees.18 Our tentative conclusion was based on the mandate in section 9 of the Act that the Commission ‘‘assess and collect regulatory fees to recover the costs’’ of regulatory activities 19 as well as our analysis in the 2006 Interim Contribution Methodology Order. In this Report and Order we adopt our tentative conclusion in the FY 2007 NPRM and require interconnected VoIP providers to pay FY 2007 11 See Petition for Rulemaking of VSNL Telecommunications (US) Inc., RM–11312 (filed Feb. 6, 2006) (‘‘VSNL Petition’’). 12 See Consumer and Governmental Affairs Bureau, Reference Information Center, Public Notice, Report No. 2759 (rel. Feb. 15, 2006). 13 See Assessment and Collection of Regulatory Fees for Fiscal Year 2006, MD Docket No. 06–68, Report and Order, 21 FCC Rcd 8092, 8098–99, para 18 (2006) (‘‘FY 2006 Report and Order’’). 14 See Joint Comments at 1. 15 We incorporate the instant comments of the seven cable landing licensees into the VSNL Petition proceeding, RM–11312. 16 See 47 CFR 9.3 for the definition of interconnected VoIP service. 17 See Universal Service Contribution Methodology, Report and Order and Notice of Proposed Rulemaking, WC Docket No. 06–122, 21 FCC Rcd 7518, 7536–543, paras. 34–49 (2006) (‘‘2006 Interim Contribution Methodology Order’’) (finding that interconnected VoIP service providers are ‘‘providers of interstate telecommunications’’ under section 254(d) and asserting the Commission’s permissive authority to require interconnected VoIP service providers to contribute to the preservation and advancement of universal service), aff’d in relevant part, Vonage Holdings Corp., v. FCC, No. 06–1276 (D.C. Cir. 2007) (‘‘Vonage’’). 18 FY 2007 NPRM, 22 FCC Rcd at 7979, para. 10. 19 47 U.S.C. 159(a)(1). PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 regulatory fees based on revenues reported on the FCC Form 499–A at the same rate as interstate telecommunications service providers (‘‘ITSPs’’).20 a. Jurisdiction 12. By way of recent background, in the 2006 Interim Contribution Methodology Order, the Commission, among other things, established universal service contribution obligations for providers of interconnected VoIP service based on its permissive authority under section 254(d) of the Act and its ancillary jurisdiction under Title I of the Act.21 The Commission noted that significant growth in the number of VoIP subscribers in recent years is expected to continue.22 In addition, the Commission observed that the USF revenue base had been diminishing and the contribution factor used to determine contributor payments into the fund has risen considerably as a result.23 Interconnected VoIP service is increasingly used to replace traditional telephone service and, as the interconnected VoIP service industry continues to grow and to attract customers who previously relied on traditional voice service, it was inappropriate to exclude interconnected VoIP service from universal service contribution requirements.24 In its Vonage decision, the DC Circuit upheld the Commission’s decision to impose USF fees on interconnected VoIP providers.25 Prior to the 2006 Interim Contribution Methodology Order, the Commission asserted its ancillary jurisdiction under Title I of the Act to require providers of interconnected VoIP services to supply 911 emergency calling capabilities to their customers.26 20 Interconnected VoIP providers will pay FY 2007 regulatory fees during a separate filing window (to be determined later), most likely in 2008. For FY 2008, interconnected VoIP providers will be required to pay regulatory fees in the same filing window as other entities. 21 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 7538–543, paras. 38–49. 22 Id., 21 FCC Rcd at 7528–29, para. 19. 23 Id. 24 Id., 21 FCC Rcd at 7541, para. 44. 25 Vonage at 15. Because it found that the Commission has authority under section 254(d) of the Act to impose USF contribution obligations on interconnected VoIP providers, the court did not decide whether the Commission also could have imposed this obligation pursuant to its Title I ancillary jurisdiction. Id. at 15–16. 26 See E911 Requirements for IP-Enabled Service Providers, First Report and Order and Notice of Proposed Rulemaking, 20 FCC Rcd 10245 (2005) (‘‘VoIP 911 Order’’); 47 CFR Part 9. The Commission also concluded that providers of interconnected VoIP services are subject to the Communications Assistance for Law Enforcement Act (‘‘CALEA’’). See Communications Assistance E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES More recently, the Commission also extended the section 222 customer proprietary network information (‘‘CPNI’’) obligations, disability access obligations, and telecommunications relay services (‘‘TRS’’) requirements to providers of interconnected VoIP services using its Title I authority.27 13. Consistent with our previous orders, we conclude that Title I of the Act gives us direct authority to impose regulatory fees on providers of interconnected VoIP services. In particular, we have previously found, based on sections 1 and 2(a) of the Act, coupled with the definitions set forth in section 3(33) (‘‘radio communication’’) and section 3(52) (‘‘wire communication’’), that interconnected VoIP services are covered by the Commission’s general jurisdictional grant.28 Section 1 of the Act states that the Commission is created ‘‘[f]or the purpose of regulating interstate and foreign commerce in communication by wire and radio so as to make available, so far as possible, to all the people of the United States * * * a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges,’’ and that the agency ‘‘shall execute and enforce the provisions of th[e] Act.’’ 29 Section 2(a), in turn, confers on the Commission regulatory authority over all interstate communication by wire or radio.30 As we have previously observed, interconnected VoIP services are covered by the statutory definitions of for Law Enforcement Act and Broadband Access and Services, ET Docket No. 04–295, RM–10865, First Report and Order and Further Notice of Proposed Rulemaking, 20 FCC Rcd 14989, 14991– 92, para. 8 (2002) (‘‘CALEA First Report and Order’’), aff’d, American Council on Education v. FCC, 451 F.3d 226 (D.C. Cir. 2006). 27 Implementation of the Telecommunications Act of 1996, Telecommunications Carriers’ Use of Customer Proprietary Network Information and Other Customer Information, IP-Enabled Services, CC Docket No. 96–115, WC Docket No. 04–36, Report and Order and Further Notice of Proposed Rulemaking, 22 FCC Rcd 6927 (2007) (‘‘EPIC CPNI Order’’); IP-Enabled Services, Implementation of Sections 255 and 251(a)(2) of the Communications Act of 1934, as Enacted by the Telecommunications Act of 1996: Access to Telecommunications Service, Telecommunications Equipment and Customer Premises Equipment by Persons with Disabilities, WC Docket No. 04–36, WT Docket No. 96–198, Report and Order, FCC 07–110 (rel. June 15, 2007) (‘‘VoIP TRS Order’’). 28 See, e.g., VoIP 911 Order, 20 FCC Rcd at 10261–62, para. 28. 29 47 U.S.C. 151. 30 See 47 U.S.C. 152(a) (stating that the provisions of the Act ‘‘shall apply to all interstate and foreign communication by wire or radio and all interstate and foreign transmission of energy by radio, which originates and/or is received within the United States, and to all persons engaged within the United States in such communication or such transmission of energy by radio * * *’’). VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 ‘‘wire communication’’ and/or ‘‘radio communication’’ because they involve ‘‘transmission of [voice] by aid of wire, cable, or other like connection * * *’’ and/or ‘‘transmission by radio * * *’’ of voice.31 Therefore, these services come within the scope of the Commission’s subject matter jurisdiction under section 2(a) of the Act. Accordingly, section 9 of the Act gives the Commission direct authority to impose regulatory fees on interconnected VoIP providers. Specifically, section 9 states that the Commission ‘‘shall assess and collect regulatory fees to recover the costs of the following regulatory activities of the Commission: Enforcement activities, policy and rulemaking activities, user information services, and international activities.’’ 32 In light of the many and increasing resources the Commission now dedicates to VoIP, the Commission should recover costs from interconnected VoIP providers.33 14. We disagree with the VON Coalition’s argument that we do not have jurisdiction to extend regulatory fees to interconnected VoIP providers because regulatory fees can only be assessed on entities subject to licensing or certification requirements.34 On the contrary, section 9 gives the Commission broad authority to impose regulatory fees. Section 9 does not limit the regulatory fee requirement to licensees. Moreover, the Commission has not, in the annual regulatory fee orders or otherwise, specifically limited the implementation of section 9 to ‘‘licensees.’’ To construe section 9 as narrowly as the VON Coalition proposes would prohibit the Commission from recovering costs from providers that impose costs on the Commission, simply because they were not licensees and would unreasonably lighten regulatory costs on certain industry segments at the cost of others. b. Basis and Rate 15. Having concluded that the Commission has authority to assess regulatory fees on interconnected VoIP providers, we must determine how to assess those fees. Specifically, we must 31 VoIP 911 Order, 20 FCC Rcd at 10261–62, para. 28. 32 47 U.S.C. 159(a)(1). e.g., nn.26–27 supra. Although we find that section 9 by its terms allows us to impose regulatory fees on providers of interconnected VoIP services, we also find, consistent with our prior orders, that we have ancillary authority under Title I to impose these fees. See, e.g., VoIP 911 Order, 20 FCC Rcd at 10261–63, paras. 26–29. Interconnected VoIP providers fall within our Title I jurisdictional grant and the assessment of regulatory fees to fund Commission operations is critical to the effective performance of the Commission’s responsibilities. 34 VON Coalition Comments at 6–7; WCA Comments at 3–5 & Reply Comments at 2–3. 33 See, PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 45911 determine whether to base fees on revenues or subscribers, or some other basis, and at what rate. We conclude that interconnected VoIP providers should pay regulatory fees based on their interstate and international revenue at the same rate as ITSPs. 16. In the FY 2007 NPRM, we sought comment on whether interconnected VoIP providers should be assessed regulatory fees based on revenues, which would be consistent with the regulatory fee methodology used for interstate telecommunications service providers, or if we should use a numbers-based approach, which would be consistent with the methodology used for CMRS.35 Most commenters addressing this issue favor a numbersbased or subscriber-based approach, as opposed to a revenue-based approach.36 We instead adopt a revenue-based approach as adopted in the 2006 Interim Contribution Methodology Order for USF contributions. The Commission’s conclusion that interconnected VoIP service is more closely analogous to wireline toll service than to CMRS guides us here.37 As a result, we will use revenue as the basis for imposing regulatory fees on interconnected VoIP providers instead of a subscriber-based approach, which is the basis for wireless providers.38 17. Commenters contend that broadband providers often offer a bundle of services to consumers and it may be difficult to separate the telecommunications service revenues from the other revenues.39 Consistent with our decision in the 2006 Interim Contribution Methodology Order, however, interconnected VoIP providers may avoid separating revenue types by using a safe-harbor level of 64.9 percent interstate or international revenues for purposes of calculating regulatory fee 35 FY 2007 NPRM, 22 FCC Rcd at 7979, para. 10. e.g., Nuvio Comments at 4; IUB Comments at 2–4; Comcast Comments at 1–2; WCA Comments at 3; NCTA Reply Comments at 2; VON Coalition Reply Comments at 6. Nuvio and VON Coalition suggest that if the Commission adopts a numbersbased assessment, the assessment should be on active numbers and not the inventory of numbers. Nuvio Comments at 4; VON Coalition Reply Comments at n. 16. 37 The D.C. Circuit rejected Vonage’s challenge to that conclusion because Vonage was unable to show why usage patterns for VoIP are more like those for wireless than for wireline toll. Vonage at 18. 38 See NTCA Comments at 2. 39 Nuvio Comments at 4; Iowa Utilities Board Comments at 2–4; Comcast Comments at 1–2; WCA Comments at 3; NCTA Reply Comments at 2. Nuvio suggests that if the Commission adopts a numbersbased assessment, the assessment should be on active numbers and not the inventory of numbers. Nuvio Comments at 4. 36 See, E:\FR\FM\16AUR1.SGM 16AUR1 45912 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES obligations.40 Interconnected VoIP providers may contribute based on a lesser percentage if they provide supporting traffic studies.41 18. We also conclude that interconnected VoIP providers will pay regulatory fees on their interstate and international revenues at the same rate as ITSPs. As we stated in the 2006 Interim Contribution Methodology Order, interconnected VoIP providers offer a service that is almost indistinguishable, from the consumers’ point of view, from the service offered by interstate telecommunications service providers.42 Further, the explosive growth of the VoIP industry in recent years has resulted in recent Commission actions addressing the service.43 The growth of the VoIP industry and the extent to which VoIP service is used as a substitute for analog voice service have necessitated a number of Commission rulemaking proceedings pertaining to interconnected VoIP services. 19. We recognize that the costs and benefits associated with our regulation of interconnected VoIP providers are not identical as those associated with regulating interstate telecommunications service and CMRS.44 For example, at this time interconnected VoIP providers are not subject to the Commission’s enforcement authority in most instances and only recently have the Commission’s rulemaking activities involved interconnected VoIP providers.45 The Commission does not maintain a database system pertaining to interconnected VoIP providers similar to the registration and filing systems for CMRS and wireline carriers.46 In addition, interconnected VoIP providers do not receive certain benefits, such as universal service support payments and interconnection 40 See 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 7544–45, para. 53; Vonage, slip op. at 7, 17–19. 41 Consistent with the Vonage decision, interconnected VoIP providers need not at this time obtain pre-approval of their traffic studies. Rather, they must submit any studies upon which they rely no later than the deadline for submitting the FCC Form 499–Q for the same time period. Vonage, slip op. at 19–20; 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 7535, para. 32. 42 The Commission has determined that interconnected VoIP service is increasingly used to replace analog voice service. See 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 7542, para. 48. 43 See, e.g., 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 7541–43, paras. 46–49; VoIP 911 Order, 20 FCC Rcd at 10261–266, paras. 26–35; EPIC CPNI Order at para. 55. 44 See WCA Comments at 6; VON Coalition Comments at 15–17 & n.42. 45 VON Coalition Comments at 16. 46 Id. VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 rights, as Title II carriers do.47 Section 9 is clear, however, that regulatory fee assessments are based on the burden imposed on the Commission, not benefits realized by regulatees.48 Interconnected VoIP providers create costs at the Commission by participating in rulemaking proceedings, waiver petitions, and other matters in the wake of our assertion of ancillary jurisdiction under Title I of the Act to require providers of interconnected VoIP services to contribute to the universal service fund, supply 911 emergency calling capabilities to their customers, comply with section 222 CPNI obligations, and comply with our disability access and TRS requirements.49 The provision of interconnected VoIP service is a growing industry 50 and we can reasonably assume that this regulatory burden on the Commission will continue to increase.51 Thus, this category of service providers should share in the costs of the Commission’s regulatory activities in the same manner as ITSPs. Section 9 does not require the Commission to engage in a company-bycompany assessment of relative regulatory costs. In any given year, companies grouped in the ITSP category, or other regulatory fee categories, might be the subject of more regulation than others, e.g., merger proceedings. As a result, our responsibility here is to identify the category of regulatory fee payees with which interconnected VoIP providers most closely relate. On this note, we also observe that interconnected VoIP 47 VON Coalition Comments at 17; WCA Comments at 6. We note that interconnected VoIP service is currently an eligible service for purposes of the schools and libraries program. In addition, the Commission recently clarified that wholesale telecommunications carriers have interconnection rights under sections 251(a) and (b) of the Act, including when providing wholesale services to interconnected VoIP providers. See Time Warner Cable Request for Declaratory Ruling that Competitive Local Exchange Carriers May Obtain Interconnection Under Section 251 of the Communications Act of 1934, as Amended, to Provide Wholesale Telecommunications Services to VoIP Providers, WC Docket No. 06–55, Memorandum Opinion and Order, DA 07–709 (WCB rel. Mar. 1, 2007). 48 Commenters have not attempted to quantify the relative burden imposed on the Commission by interconnected VoIP providers. 49 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 7541–43, paras. 46–49; VoIP 911 Order, 20 FCC Rcd at 10261–266, paras. 26–35; EPIC CPNI Order at para. 55; VoIP TRS Order at para. 16. 50 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 7528–29, para. 19. 51 We recognize that including interconnected VoIP providers in our regulatory fee schedule at this time will have a minimal impact on the fees assessed other carriers, but this may change as the industry grows and their share of regulatory fees increases. PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 providers are able to offer their services because they interconnect with the PSTN, and they thereby benefit from our substantial regulation of telecommunications service providers.52 20. Because we are adding interconnected VoIP services to our regulatory fee assessments, we conclude that this is a permitted amendment under section 9(b)(3) of the Act. Section 9(b)(4)(B) of the Act in turn requires us to notify Congress 90 days before the change may take effect. We will provide Congress notification upon publication of this order, and will release a public notice once the amendment takes effect, if there is no Congressional objection. 5. Private Land Mobile Radio Service 21. EWA argues that the fee for Private Land Mobile Radio Service (‘‘PLMRS’’) exclusive use licenses has increased from $5 per year in 2001 to $20 per year in 2006, and for PLMRS shared use licenses, the fee has increased from $5 to $10 during the same time period.53 EWA further contends that this increase in fee rates is not associated with a corresponding increase in the cost of regulating the PLMRS industry, and as a result, the Commission’s FY 2007 proposed Part 90 PLMRS regulatory fee of $35 (PLMRS Exclusive Use) and $15 (PLMRS Shared Use) is unjustified. 22. We disagree. In our FY 2004 Report and Order, the Commission stated that regulatory fees need not be precisely calibrated on a service-byservice basis to the actual costs of the Commission’s regulatory activities for that service.54 The Commission stated that, ‘‘the initial Schedule of Regulatory Fees that Congress enacted in section 9(g) reflects a ‘costs adjusted for benefits’ approach permitted under section 9.’’ 55 Procedurally, the Commission calculates regulatory fees by proportionally allocating the total amount that must be collected in section 9 regulatory fees (known as ‘‘Expected Revenue’’), and dividing this allocated amount by the estimated number of units in its respective fee category. In the case of PLMRS (Shared Use and Exclusive Use), the resulting figure is also divided by 10, the length of the 52 In addition, those companies that currently offer their customers both Title II services and interconnected VoIP services may choose to shift customers from the traditional landline service to the interconnected VoIP service in order to reduce the regulatory fee burden. 53 EWA Comments at 2–3. 54 See Assessment and Collection of Regulatory Fees for Fiscal Year 2004, MD Docket No. 04–73, Report and Order, 19 FCC Rcd 11662, 11665–67, paras. 6–12 (2004) (‘‘FY 2004 Report and Order’’). 55 See FY 2004 Report and Order, 19 FCC Rcd at 11666, para. 8. E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations 1. Use of Fee Filer 25. We did not seek specific comment on the use of our online Fee Filer application in the FY 2007 NPRM. We take this opportunity, however, to strongly encourage regulatees to electronically file their FY 2007 regulatory fee payments via Fee Filer,57 rather than submitting payment with a completed hardcopy Form 159, Form 159–B, and/or Form 159–W. The benefits of electronically filing via Fee Filer are expeditious payment submissions that are less expensive (no U.S. postage if paying online) and less prone to error. It also results in improved record keeping and payment reconciliation efforts, and reduces paperwork burdens on payers and Commission staff alike. 26. Traditionally, we have received hardcopy Form 159–Cs (Continuation Sheets) from our regulatees needing to make voluminous payment transactions. Our ‘‘voluminous payers’’ will benefit even more so by using Fee Filer. Having expanded our pre-billing initiatives in FY 2007, some regulatees will receive more than one Form 159–B; and some will be obligated to pay for fees that were pre-billed and other fees that were not pre-billed. Fee Filer relieves regulatees of the need to mail several different pre-bills or to follow different filing instructions for different fees; and enables all fee obligations to be paid simply either online or by following pre-printed instructions on a Fee Filerproduced voucher. 27. We note that Fee Filer accepts electronic credit card transactions of up to $99,999.99 and ACH payment transactions from a bank account of an unlimited dollar amount. Fee Filer also facilitates payment by check or wire transfer by producing a one-page Remittance Voucher Form 159–E which can be mailed to our lockbox bank. regfees.html for the FY 2007 regulatory fee cycle. As a general practice, we will not send regulatory fee material to regulatees via surface mail. However, in the event that regulatees do not have access to the Internet, we will mail public notices and other relevant material upon request. Regulatees and the general public may request such information by contacting the FCC Financial Operations HelpDesk at (877) 480–3201, Option 4. 29. As discussed above, we do not send public notices and fact sheets to regulatees en masse. However, we will continue to send specific regulatory fee pre-bills or assessment notifications via surface mail to the select fee categories discussed below.58 Pre-bills are hardcopy billing statements that the Commission mails to certain regulatees. In prior years, the Commission only sent pre-bills to ITSPs and satellite space station licensees. The remaining regulatees did not receive pre-bills. 30. In our FY 2007 NPRM, we sought comment on expanding our section 9 regulatory fee pre-billing initiatives to include our service categories for earth stations and CARS stations, beginning in FY 2007. We stated that we could accomplish pre-billing for these categories because they are comprised of relatively few payment units (relative to many other categories in our Schedule of Regulatory Fees), and because we maintain licensing databases for both categories.59 The ACA supports our proposal to pre-bill earth stations and CARS stations, noting that it can promote timely filings and payments, and further reduce administrative burdens and costs for small cable operators.60 We received no comments regarding our proposal. Effective this fiscal year, we will pre-bill our earth station and CARS station service categories. a. Interstate Telecommunications Service Providers 31. In FY 2001, we began mailing precompleted FCC Form 159–W assessments to carriers in an effort to 24. In our FY 2007 NPRM, we sought comment on the administrative and operational processes used to collect the annual section 9 regulatory fees. Although these issues do not affect the amount of regulatory fees parties are obligated to submit, the administrative and operational issues affect the process of submitting payment. 2. Proposals for Notification and Collection of Regulatory Fees 28. In our FY 2007 NPRM, we sought comment on the administrative processes that the Commission uses to notify regulatees and collect regulatory fees. We received no comment on these general processes. 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. Consistent with our established practice, we will provide public notices, fact sheets and all other relevant material on our Web site at http://www.fcc.gov/fees/ 56 Data derived from regulatory fee Report and Orders for fiscal years 2001–2006. 57 Fee Filer can be accessed at http:// www.fcc.gov/fees/feefiler.html. term of a PLMRS license. Because PLMRS licenses have a ten-year term, and regulatory fees are not collected again from these licenses until after 10 years have passed, it is possible that in any given year, there may be fewer units that are either renewing their PLMRS licenses or applying for new ones. For example, between FY 2001 and FY 2006, the unit estimates for PLMRS Exclusive Use decreased from 5,500 units (FY 2001) to 2,200 units (FY 2006), a 60 percent reduction, while PLMRS Shared Use unit estimates decreased from 58,000 units (FY 2001) to 25,000 units (FY 2006), a 57 percent reduction.56 At the same time that PLMRS (Shared Use and Exclusive Use) unit estimates were decreasing by nearly 60 percent, our congressionally mandated regulatory fees collections amount increased from $200.1 million (FY 2001) to $298.8 million (FY 2006), an increase of 49 percent. The combination of an increasing collections amount mandated by Congress combined with a decrease in the number of units resulted in a higher unit fee between FY 2001 and FY 2006 for PLMRS Shared Use and PLMRS Exclusive Use fee categories. 23. We also note that the unit fee increase has been gradual over time. For example, between FY 2001 and FY 2006, the PLMRS Shared Use unit fee remained steady at $5 per year between FY 2001 and FY 2005, and increased only to $10 per year beginning in FY 2006. During the same time period, the PLMRS Exclusive Use unit fee remained at $5 per year in FY 2001 and FY 2002, increased to the level of $10 per year in FY 2003, FY 2004, and FY 2005, and then increased to $20 per year in FY 2006. Because these fee increases are based primarily on a declining unit base and an increasing congressional mandate to collect more annual regulatory fees, common factors that contribute to unit fee changes each year, we decline to modify or reduce the PLMRS (Shared Use and Exclusive Use) unit fee as EWA suggests. B. Administrative and Operational Issues mstockstill on PROD1PC66 with RULES 45913 VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 PO 00000 Frm 00035 Fmt 4700 Sfmt 4700 58 An assessment is a proposed statement of the amount of regulatory fees owed by an entity to the Commission (or proposed subscriber count to be ascribed for purposes of setting the entity’s regulatory fee) but it is not entered into the Commission’s accounting system as a current debt. A pre-bill is considered an account receivable in the Commission’s accounting system. Pre-bills reflect the amount owed and have a payment due date of the last day of the regulatory fee payment window. Consequently, if a pre-bill is not paid by the due date, it becomes delinquent and is subject to our debt collection procedures. See also 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910. 59 See FY 2007 NPRM, 22 FCC Rcd at 7981, para. 19. 60 ACA Comments at 4. E:\FR\FM\16AUR1.SGM 16AUR1 45914 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations assist them in paying their ITSP regulatory fee. The fee amount on FCC Form 159–W was calculated from the FCC Form 499–A worksheet. Beginning in FY 2004, we converted our usage of the FCC Form 159–W from an ‘‘assessment of amount due’’ to a prebill. We have successfully used the Form 159–W as a pre-billing instrument in the fiscal years following, and we proposed to continue our ITSP prebilling initiative in FY 2007 in our FY 2007 NPRM. We received no comment on this proposal, and will continue to mail pre-bills ITSPs in FY 2007. 32. This fiscal year, we will round lines 14 (total subject revenues) and 16 (total regulatory fee owed) on FCC Form 159–W to the nearest dollar. Line 14 must be rounded to a whole dollar amount because this data field is linked to the FCC Form 159 Remittance Advice Block 25A (quantity), which can only accept whole numbers. It logically follows that if line 14 must be rounded, then the form’s final line that calculates the total fee owed (line 16) should be rounded to the nearest dollar as well. Also, rounding lines 14 and 16 will nominally ease the filing and payment burdens of our Form 159–W filers. We received no comment on this administrative change as proposed in our FY 2007 NPRM, and will therefore implement the change for FY 2007. mstockstill on PROD1PC66 with RULES b. Satellite Space Station Licensees 33. Beginning in FY 2004, we mailed regulatory fee pre-bills via surface mail to licensees in our two satellite space station service categories. Specifically, geostationary orbit space station (‘‘GSO’’) licensees received bills requesting regulatory fee payment for satellites that (1) were licensed by the Commission and operational on or before October 1 of the respective fiscal year; and (2) were not co-located with and technically identical to another operational satellite on that date (i.e., were not functioning as a spare satellite). Non-geostationary orbit space station (‘‘NGSO’’) licensees received pre-bills requesting regulatory fee payment for systems that were licensed by the Commission and operational on or before October 1 of the respective fiscal year. 34. For FY 2007, we proposed to continue mailing pre-bills for our GSO and NGSO satellite space station categories.61 We received no comment on this matter, and will continue to mail pre-bills to our GSO and NGSO satellite space station categories. 61 See FY 2007 NPRM, 22 FCC Rcd at 7980–81, para. 17. VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 c. Media Services Licensees 35. Beginning in FY 2003, we sent fee assessment notifications via surface mail to media services entities on a perfacility basis. The notifications provided the assessed fee amount for the facility in question, as well as the data attributes that determined the fee amount. We have since refined this initiative with improved results.62 In our FY 2007 NPRM, we proposed to continue our assessment initiative for media services licensees this year.63 We received no comment on the proposal. 36. Consistent with procedures used last year, we will mail assessment notifications to licensees to their primary record of contact populated in CDBS (Consolidated Database System) and to their secondary record of contact, if available. We will continue to make the Commission-authorized web site available to licensees to update or correct any information concerning their facilities and to amend their fee-exempt status, if need be.64 Licensees opting not to file their fee payment electronically through Fee Filer must submit a completed hardcopy FCC Form 159 with their fee payment; i.e., the assessment notifications cannot be used as a substitute for a completed Form 159. d. Commercial Mobile Radio Service Cellular and Mobile Services Assessments 37. As we have done in prior years, we will send assessment letters to CMRS providers using Numbering Resource Utilization Forecast (‘‘NRUF’’) data that is based on ‘‘assigned’’ number counts that have been adjusted for porting to net Type 0 ports (‘‘in’’ and 62 Some of those refinements have been to provide licensees with a Commission-authorized Web site to update or correct any information concerning their facilities, and to amend their feeexempt status, if need be. Also, our notifications now provide licensees with a telephone number to call in the event that they need customer assistance. The notifications themselves have been refined so that licensees of fewer than four facilities receive individual fee assessment postcards for their facilities; whereas licensees of four or more facilities now receive a single assessment letter that lists all of their facilities and the associated regulatory fee obligation for each facility. 63 Fee assessments were proposed again to be 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, Class A Television Stations, and LPTV Translators/Boosters, to the extent that applicants, permittees and licensees of such facilities do not qualify as government entities or non-profit entities. Fee assessments have not been issued for broadcast auxiliary stations in prior years, nor will they be issued in FY 2007. 64 The Commission-authorized Web site for media services licensees is http://www.fccfees.com. PO 00000 Frm 00036 Fmt 4700 Sfmt 4700 ‘‘out’’).65 The letters will not include Operating Company Numbers (‘‘OCNs’’) with their respective assigned number counts, but rather, OCNs with an aggregate total of assigned numbers for each carrier. As in prior years, carriers will be given an opportunity to amend their subscriber counts listed on the assessment letter. 38. If the number of subscribers on the assessment letter differs from the subscriber count the service provider provided on its NRUF form, the provider may correct its subscriber count by returning the assessment letter or by contacting the Commission and stating a reason for the change, such as the purchase or the sale of a subsidiary, including the date of the transaction, and any other information that will help to justify a reason for the change. 39. If we receive no response or correction to our initial assessment letter, we will expect the provider’s section 9 fee payment to be based on the number of subscribers listed on that letter. We will review all amendments to assessment letters and determine whether a change in the number of subscribers is warranted. We will then generate and mail a final assessment letter. The final assessment letter will inform carriers as to whether or not we accept the amended subscriber count. 40. Although an initial and a final assessment letter will be mailed to CMRS providers that have filed an NRUF form, some providers may not be sent assessment letters if they did not file the NRUF form. These providers shall compute their section 9 fee payment using the standard methodology 66 that is currently in place for CMRS Wireless services (e.g., compute their subscriber counts as of December 31, 2006), and submit their payment accordingly, either via Fee Filer, or attached to a completed hardcopy FCC Form 159. However, regardless of whether a provider receives an assessment letter or calculates its subscriber count independently, the Commission may audit the number of subscribers for which section 9 fees are paid. In the event that the Commission determines that the number of subscribers is inaccurate or that an insufficient reason is given for making a correction on the 65 See Assessment and Collection of Regulatory Fees for Fiscal Year 2005 and Assessment and Collection of Regulatory Fees for Fiscal Year 2004, MD Docket Nos. 05–59 and 04–73, Report and Order and Order on Reconsideration, 20 FCC Rcd 12259, 12264, paras. 38–44 (2005). 66 Federal Communications Commission, Regulatory Fees Fact Sheet: What You Owe— Commercial Wireless Services for FY 2005 at 1 (rel. Jul. 2005). E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES initial assessment letter, the Commission will assess the carrier for the difference between what was paid and what should have been paid. 41. Aggregate Subscriber Levels. Also in our FY 2007 NPRM, we noted that last year we eliminated the requirement for CMRS providers to identify their individual call signs when making their section 9 fee payment. This simplified the payment process for all CMRS providers by enabling them to pay their section 9 fees at the aggregate level.67 In our FY 2007 NPRM, we proposed to continue this practice and we received no comment. We shall therefore continue to allow CMRS providers to pay their section 9 fees at the aggregate subscriber level. 42. Consolidated CMRS Section 9 Fee Categories. Finally, in our FY 2007 NPRM, we proposed to consolidate the CMRS cellular and CMRS mobile fee categories into one CMRS fee category. This action would eliminate the need for CMRS providers to separate their subscriber counts into CMRS cellular and CMRS mobile fee categories during the fee payment process. At one time, the Commission perceived a need to monitor the CMRS cellular and CMRS mobile fee categories separately.68 However, we deem this no longer necessary and therefore proposed to reduce administrative burdens on CMRS providers by consolidating the two categories into one. We received no specific comment on this proposal. We will therefore consolidate our CMRS mobile category (which would have been payment type code 0712 in FY 2007) into the CMRS cellular category (payment type code 0711 in FY 2007). On a going forward basis, all CMRS cellular and mobile providers shall make their section 9 fee payments using the Commission’s payment type code l11. This procedural change does not affect CMRS Messaging (Paging) providers, who will continue to make their section 9 fee payment using fee code 0713 in FY 2007 and l13 in the outyears. 67 See Assessment and Collection of Regulatory Fees for Fiscal Year 2006, MD Docket No. 06–68, Report and Order, 21 FCC Rcd 8092, 8105, para. 48 (2006). 68 In our FY 1998 Report and Order, the Commission classified Wireless Communications Service (‘‘WCS’’), which included Personal Communications Services (Part 24), as a CMRS Mobile Service, stating that CMRS is ‘‘an ‘umbrella’ descriptive term attributed to various existing broadband services authorized to provide interconnected mobile radio services’’ 68 However, beginning in FY 1998, a separate fee code was provided for Personal Communications Service (‘‘PCS’’) to monitor the number of units in this service category. VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 e. Cable Television Subscribers 43. In our FY 2007 NRPM, we proposed to continue to permit cable television operators to base their regulatory fee payment on their company’s aggregate year-end subscriber count, rather than requiring them to sub-report subscriber counts on a per community unit identifier (CUID) basis.69 This practice has worked well for the Commission the past three fiscal years and has eased administrative burdens for the cable television industry. One commenter supports this proposal.70 We received no opposing comments, and will thereby continue to employ this payment procedure this fiscal year. 44. We also proposed to send an email reminder to addresses populated in the Media Bureau’s Cable Operations and Licensing System (‘‘COALS’’), as we did last year, to notify recipients of the FY 2007 regulatory fee payment due date and the fee amount for basic cable television subscribers. Cable television operators are required to file their cablerelated forms at the Commission via the COALS Web site. To date, more than 98 percent of all cable operators have their email addresses recorded in the database. One commenter supports this proposal.71 We received no opposing comments, and will therefore send an email reminder to cable operators again this fiscal year. 45. Sending reminders via e-mail has proven to be an effective practice and we therefore proposed to discontinue our other practice of sending fee assessment letters via surface mail to cable television operators who are on file as having paid regulatory fees the previous fiscal year. One commenter asks the Commission to continue sending fee assessment letters via surface mail to cable operators that serve fewer than 5,000 subscribers, stating that these operators rely exclusively on the U.S. postal service for their day-to-day operations.72 We decline the commenter’s request. After conducting this assessment initiative for three years, we have concluded that it is inadequate for accurate assessment purposes and we will instead direct the Commission’s resources towards more useful fee collection activities. In addition, we note that we make available all relevant regulatory fee material on our Web site. If regulatees cannot access the Internet to obtain the necessary information for paying their 69 See FY 2007 NPRM, 22 FCC Rcd at 7983, para. 28. 70 ACA Comments at 2. Comments at 2. 72 ACA Comments at 3. 71 ACA PO 00000 Frm 00037 Fmt 4700 Sfmt 4700 45915 regulatory fees, they may request such information to be sent via surface mail by contacting the FCC Financial Operations HelpDesk at (877) 480–3201, Option 4. III. Procedural Matters A. Payment of Regulatory Fees 1. De Minimis Fee Payment Liability 46. Consistent with past practice, regulatees whose total FY 2007 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 2007 regulatory fees. 2. Standard Fee Calculations and Payment Dates 47. The Commission will, for the convenience of payers, accept fee payments made in advance of the window for the payment of regulatory fees. Licensees are reminded that, under our current rules, the responsibility for payment of fees by service category is as follows: (a) Media Services: Regulatory fees must be paid for initial construction permits that were granted on or before October 1, 2006 for AM/FM radio stations, VHF/UHF television stations and satellite television stations. Regulatory fees must be paid for all broadcast facility licenses granted on or before October 1, 2006. In instances where a permit or license is transferred or assigned after October 1, 2006, responsibility for payment rests with the holder of the permit or license as of the fee due date. (b) Wireline (Common Carrier) Services: Regulatory fees must be paid for authorizations that were granted on or before October 1, 2006. In instances where a permit or license is transferred or assigned after October 1, 2006, responsibility for payment rests with the holder of the permit or license as of the fee due date. (c) Wireless Services: CMRS cellular, mobile, and messaging services (fees based upon a subscriber, unit or circuit count): Regulatory fees must be paid for authorizations that were granted on or before October 1, 2006. The number of subscribers, units or circuits on December 31, 2006 will be used as the basis from which to calculate the fee payment. The first eleven regulatory fee categories in our Schedule of Regulatory Fees (see Attachment D) pay what we refer to as ‘‘small multi-year wireless regulatory fees.’’ Entities pay these regulatory fees in advance for the entire amount of their 5-year or 10-year term of initial license, and only pay E:\FR\FM\16AUR1.SGM 16AUR1 45916 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES regulatory fees again for the license at the time its next renewal. So while we include these eleven categories in our Schedule of Regulatory Fees to publicize the fee amounts, we do not actually collect these fees on an annual basis. (d) Multichannel Video Programming Distributor Services (cable television operators and CARS licensees): Regulatory fees must be paid for the number of basic cable television subscribers as of December 31, 2006.73 Regulatory fees also must be paid for CARS licenses that were granted on or before October 1, 2006. In instances where a CARS license is transferred or assigned after October 1, 2006, responsibility for payment rests with the holder of the license as of the fee due date. (e) International Services: Regulatory fees must be paid for earth stations, geostationary orbit space stations and non-geostationary orbit satellite systems that were licensed and operational on or before October 1, 2006. In instances where a license is transferred or assigned after October 1, 2006, responsibility for payment rests with the holder of the license as of the fee due date. Regulatory fees must be paid for international bearer circuits, the payments of which are determined by the number of active circuits as of December 31, 2006.74 73 Cable television system operators should compute their basic subscribers as follows: Number of single family dwellings + number of individual households in multiple dwelling unit (apartments, condominiums, mobile home parks, etc.) paying at the basic subscriber rate + bulk rate customers + courtesy and free service. Note: Bulk-Rate Customers = Total annual bulk-rate change 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 2006, rather than on a count as of December 31, 2006. 74 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. 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: http:// hraunfoss.fcc.gov/edocs_public/attachmatch/DOC- VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 B. Enforcement 48. As a reminder to all licensees, section 159(c) of the Act requires us to impose an additional charge as a penalty for late payment of any regulatory fee. As in years past, a late payment penalty of 25 percent of the amount of the required regulatory fee will be assessed on the first day following the deadline date for filing of these fees. Regulatory fee payment must be received and stamped at the lockbox bank by the last day of the regulatory fee filing window, and not merely postmarked by the last day of the window. Failure to pay regulatory fees and/or any late penalty will subject regulatees to sanctions, including the Commission’s Red Light Rule (see 47 CFR 1.1910) and 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 47 CFR 1.1940(d) of the Commission’s rules. These administrative processing charges will be assessed on any delinquent regulatory fee, in addition to the 25 percent late charge penalty. In case of partial payments (underpayments) of regulatory fees, the licensee will be given credit for the amount paid, but if it is later determined that the fee paid is incorrect or not timely paid, then the 25 percent late charge penalty (and other charges and/or sanctions, as appropriate) will be assessed on the portion that is not paid in a timely manner. 49. Furthermore, our regulatory fee rules provide that we will withhold action on any applications or other requests for benefits filed by anyone who is delinquent in any non-tax debts owed to the Commission (including regulatory fees) and will ultimately dismiss those applications or other requests if payment of the delinquent debt or other satisfactory arrangement 249904A4.pdf). On February 6, 2006, VSNL Telecommunications (US) Inc. filed a Petition for Rulemaking urging the Commission to reform the current International Bearer Circuit Fee rules and policies as applied to non-common carrier submarine cable operators. See Petition for Rulemaking of VSNL Telecommunications (US) Inc., RM–11312 (filed Feb. 6, 2006). This Petition remains pending before the Commission, which has issued a Public Notice requesting comment on the petition. See Consumer and Governmental Affairs Bureau, Reference Information Center, Public Notice, Report No. 2759 (rel. Feb. 15, 2006). The Commission intends to resolve the complex issues presented by this Petition separately, and any comments on these issues filed in the instant proceeding will be incorporated into, and addressed, with those filed on the Petition for Rulemaking. PO 00000 Frm 00038 Fmt 4700 Sfmt 4700 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 entity responsible for paying the delinquent fee(s). C. Final Paperwork Reduction Act of 1995 Analysis 50. This Report and Order contains modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104–13. It will be submitted to the Office of Management and Budget (OMB) for review under Section 3507(d) of the PRA. OMB, the general public, and other Federal agencies are invited to comment on the new or modified information collection requirements contained in this proceeding. In addition, we note that pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107–198, see 44 U.S.C. 3506(c)(4), we previously sought specific comment on how the Commission might ‘‘further reduce the information collection burden for small business concerns with fewer than 25 employees.’’ D. Congressional Review Act Analysis 51. The Commission will send a copy of this Report and Order and Further Notice of Proposed Rulemaking in a report to be sent to Congress and the General Accountability 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 2007 section 9 regulatory fee assessment requirements are adopted as specified herein. 53. It is further ordered that Part 1 of the Commission’s Rules are amended as set forth in Attachment H, and the these Rules shall become effective 30 days after publication in the Federal Register, except that changes to the Schedule of Regulatory Fees made pursuant to section 9(b)(3) of the Communications Act, and incorporating regulatory fee payment obligations for interconnected VoIP service providers, shall become effective 90 days after notification to Congress. 54. It is further ordered that the Commission’s Consumer and Governmental Affairs Bureau, Reference Information Center, shall send a copy of this Report and Order and Further Notice of Proposed Rulemaking, E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations including the Final Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the U.S. Small Business Administration. Federal Communications Commission. Marlene H. Dortch, Secretary. Attachment A—Final Regulatory Flexibility Analysis 55. As required by the Regulatory Flexibility Act (‘‘RFA’’),75 the Commission prepared an Initial Regulatory Flexibility Analysis (‘‘IRFA’’) of the possible significant economic impact on small entities by the policies and rules proposed in its Notice of Proposed Rulemaking, In the Matter of Assessment and Collection of Regulatory Fees for Fiscal Year 2007.76 Written public comments were sought on the FY 2007 fees proposal, including comments on the IRFA. This present Final Regulatory Flexibility Analysis (‘‘FRFA’’) conforms to the RFA.77 I. Need for, and Objectives of, the Proposed Rules 56. This rulemaking proceeding is initiated to amend the Schedule of Regulatory Fees in the amount of $290,295,160, 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 57. None. mstockstill on PROD1PC66 with RULES III. Description and Estimate of the Number of Small Entities to Which the Proposed Rules Will Apply 58. 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.78 The RFA generally defines the term ‘‘small entity’’ as having the same meaning as the terms ‘‘small business,’’ ‘‘small organization,’’ and ‘‘small governmental jurisdiction.’’ 79 In 75 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’’). 76 See Assessment and Collection of Regulatory Fees for Fiscal Year 2007, Notice of Proposed Rulemaking, 22 FCC Rcd 7975 (2007) (‘‘FY 2007 NPRM’’). 77 5 U.S.C. 604. 78 5 U.S.C. 603(b)(3). 79 5 U.S.C. 601(6). VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 addition, the term ‘‘small business’’ has the same meaning as the term ‘‘small business concern’’ under the Small Business Act.80 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.81 59. Small Businesses. Nationwide, there are a total of 22.4 million small businesses, according to SBA data.82 60. Small Organizations. Nationwide, there are approximately 1.6 million small organizations.83 61. Small Governmental Jurisdictions. The term ‘‘small governmental jurisdiction’’ is defined generally as ‘‘governments of cities, towns, townships, villages, school districts, or special districts, with a population of less than fifty thousand.’’ 84 Census Bureau data for 2002 indicate that there were 87,525 local governmental jurisdictions in the United States.85 We estimate that, of this total, 84,377 entities were ‘‘small governmental jurisdictions.’’ 86 Thus, we estimate that most governmental jurisdictions are small. 62. 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.’’ 87 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 80 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.’’ 81 15 U.S.C. 632. 82 See SBA, Programs and Services, SBA Pamphlet No. CO–0028, at page 40 (July 2002). 83 Independent Sector, The New Nonprofit Almanac & Desk Reference (2002). 84 5 U.S.C. 601(5). 85 U.S. Census Bureau, Statistical Abstract of the United States: 2006, Section 8, page 272, Table 415. 86 We assume that the villages, school districts, and special districts are small, and total 48,558. See U.S. Census Bureau, Statistical Abstract of the United States: 2006, section 8, page 273, Table 417. For 2002, Census Bureau data indicate that the total number of county, municipal, and township governments nationwide was 38,967, of which 35,819 were small. Id. 87 15 U.S. C. 632. PO 00000 Frm 00039 Fmt 4700 Sfmt 4700 45917 dominance is not ‘‘national’’ in scope.88 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. 63. Incumbent Local Exchange Carriers (‘‘ILECs’’). Neither the Commission nor the SBA has developed a small business size standard specifically for incumbent local exchange services. The appropriate size standard under SBA rules is for the category Wired Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer employees.89 According to Commission data,90 1,303 carriers have reported that they are engaged in the provision of incumbent local exchange services. Of these 1,303 carriers, an estimated 1,020 have 1,500 or fewer employees and 283 have more than 1,500 employees. Consequently, the Commission estimates that most providers of incumbent local exchange service are small businesses that may be affected by these rules. 64. 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.91 According to Commission data,92 769 carriers have reported that they are engaged in the provision of either competitive access provider services or competitive local exchange carrier services. Of these 769 carriers, an estimated 676 have 1,500 or fewer employees and 94 have more than 1,500 88 Letter from Jere W. Glover, Chief Counsel for Advocacy, SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small Business Act contains a definition of ‘‘small-business concern,’’ which the RFA incorporates into its own definition of ‘‘small business.’’ See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 601(3) (RFA). SBA regulations interpret ‘‘small business concern’’ to include the concept of dominance on a national basis. See 13 CFR 121.102(b). 89 13 CFR 121.201, North American Industry Classification System (NAICS) code 517110. 90 FCC, Wireline Competition Bureau, Industry Analysis and Technology Division, ‘‘Trends in Telephone Service’’ at Table 5.3, Page 5–5 (June 2005) (hereinafter ‘‘Trends in Telephone Service’’). This source uses data that are current as of October 1, 2004. 91 13 CFR 121.201, NAICS code 517110. 92 ‘‘Trends in Telephone Service’’ at Table 5.3. E:\FR\FM\16AUR1.SGM 16AUR1 45918 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES employees. In addition, 12 carriers have reported that they are ‘‘Shared-Tenant Service Providers,’’ and all 12 are estimated to have 1,500 or fewer employees. In addition, 39 carriers have reported that they are ‘‘Other Local Service Providers.’’ Of the 39, an estimated 38 have 1,500 or fewer employees and one has more than 1,500 employees. Consequently, the Commission estimates that most providers of competitive local exchange service, competitive access providers, ‘‘Shared-Tenant Service Providers,’’ and ‘‘Other Local Service Providers’’ are small entities that may be affected by these rules. 65. 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.93 According to Commission data,94 143 carriers have reported that they are engaged in the provision of local resale services. Of these, an estimated 141 have 1,500 or fewer employees and two have more than 1,500 employees. Consequently, the Commission estimates that the majority of local resellers are small entities that may be affected by these rules. 66. 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.95 According to Commission data,96 770 carriers have reported that they are engaged in the provision of toll resale services. Of these, an estimated 747 have 1,500 or fewer employees and 23 have more than 1,500 employees. Consequently, the Commission estimates that the majority of toll resellers are small entities that may be affected by these rules. 67. 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.97 According to Commission data,98 654 carriers have reported that they are engaged in the provision of payphone services. Of 93 13 CFR 121.201, NAICS code 517310. 94 ‘‘Trends in Telephone Service’’ at Table 5.3. 95 13 CFR 121.201, NAICS code 517310. 96 ‘‘Trends in Telepone Service’’ at Table 5.3. 97 3 CFR 121.201, NAICS code 517110. 98 ‘‘Trends in Telephone Service’’ at Table 5.3. VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 these, an estimated 652 have 1,500 or fewer employees and two have more than 1,500 employees. Consequently, the Commission estimates that the majority of payphone service providers are small entities that may be affected by these rules. 68. 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.99 According to Commission data,100 316 carriers have reported that they are engaged in the provision of interexchange service. Of these, an estimated 292 have 1,500 or fewer employees and 24 have more than 1,500 employees. Consequently, the Commission estimates that the majority of IXCs are small entities that may be affected by these rules. 69. 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.101 According to Commission data,102 23 carriers have reported that they are engaged in the provision of operator services. Of these, an estimated 20 have 1,500 or fewer employees and three have more than 1,500 employees. Consequently, the Commission estimates that the majority of OSPs are small entities that may be affected by these rules. 70. 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.103 According to Commission data,104 89 carriers have reported that they are engaged in the provision of prepaid calling cards. Of these, an estimated 88 have 1,500 or fewer employees and one has more than 1,500 employees. Consequently, the Commission estimates that the majority 99 13 CFR 121.201, NAICS code 517110. 100 ‘‘Trends in Telephone Service’’ at Table 5.3. 101 13 CFR 121.201, NAICS code 517110. 102 ‘‘Trends in Telephone Service’’ at Table 5.3. 103 13 CFR 121.201, NAICS code 517310. 104 ‘‘Trends in Telephone Service’’ at Table 5.3. PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 of prepaid calling card providers are small entities that may be affected by these rules. 71. 800 and 800-Like Service Subscribers.105 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.106 The most reliable source of information regarding the number of these service subscribers appears to be data the Commission receives from Database Service Management on the 800, 866, 877, and 888 numbers in use.107 According to our data, at the end of December 2004, the number of 800 numbers assigned was 7,540,453; the number of 888 numbers assigned was 5,947,789; the number of 877 numbers assigned was 4,805,568; and the number of 866 numbers assigned was 5,011,291. We do not have data specifying the number of these subscribers that are independently owned and operated or have 1,500 or fewer employees, and thus are unable at this time to estimate with greater precision the number of toll free subscribers that would qualify as small businesses under the SBA size standard. Consequently, we estimate that there are 7,540,453 or fewer small entity 800 subscribers; 5,947,789 or fewer small entity 888 subscribers; 4,805,568 or fewer small entity 877 subscribers, and 5,011,291 or fewer entity 866 subscribers. 72. International Service Providers. There is no small business size standard developed specifically for providers of international service. The appropriate size standards under SBA rules are for the two broad census categories of ‘‘Satellite Telecommunications’’ and ‘‘Other Telecommunications.’’ Under both categories, such a business is small if it has $13.5 million or less in average annual receipts.108 73. The first category of Satellite Telecommunications ‘‘comprises establishments primarily engaged in providing point-to-point telecommunications services to other establishments in the telecommunications and broadcasting industries by forwarding and receiving communications signals via a system of satellites or reselling satellite 105 We include all toll-free number subscribers in this category, including those for 888 numbers. 106 13 CFR 121.201, NAICS code 517310. 107 ‘‘Trends in Telephone Service’’ at Tables 18.4, 18.5, 18.6, and 18.7. 108 13 CFR 121.201 , NAICS codes 517410 and 517910. E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES telecommunications.’’ 109 For this category, Census Bureau data for 2002 show that there were a total of 371 firms that operated for the entire year.110 Of this total, 307 firms had annual receipts of under $10 million, and 26 firms had receipts of $10 million to $24,999,999.111 Consequently, we estimate that the majority of Satellite Telecommunications firms are small entities that might be affected by our action. 74. The second category of Other Telecommunications ‘‘comprises establishments primarily engaged in (1) providing specialized telecommunications applications, such as satellite tracking, communications telemetry, and radar station operations; or (2) providing satellite terminal stations and associated facilities operationally connected with one or more terrestrial communications systems and capable of transmitting telecommunications to or receiving telecommunications from satellite systems.’’ 112 For this category, Census Bureau data for 2002 show that there were a total of 332 firms that operated for the entire year.113 Of this total, 259 firms had annual receipts of under $10 million and 15 firms had annual receipts of $10 million to $24,999,999.114 Consequently, we estimate that the majority of Other Telecommunications firms are small entities that might be affected by our action. 75. Wireless Service Providers. The SBA has developed a small business size standard for wireless firms within the two broad economic census categories of ‘‘Paging’’ 115 and ‘‘Cellular and Other Wireless Telecommunications.’’ 116 Under both categories, the SBA deems a wireless business to be small if it has 1,500 or fewer employees. For the census category of Paging, Census Bureau data for 2002 show that there were 807 firms in this category that operated for the 109 U.S. Census Bureau, 2002 NAICS Definitions, ‘‘517410 Satellite Telecommunications’’; http:// www.census.gov/epcd/naics02/def/NDEF517.HTM. 110 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, ‘‘Establishment and Firm Size (Including Legal Form of Organization),’’ Table 4, NAICS code 517410 (issued Nov. 2005). 111 Id. An additional 38 firms had annual receipts of $25 million or more. 112 U.S. Census Bureau, 2002 NAICS Definitions, ‘‘517910 Other Telecommunications’’; http:// www.census.gov/epcd/naics02/def/NDEF517.HTM. 113 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, ‘‘Establishment and Firm Size (Including Legal Form of Organization),’’ Table 4, NAICS code 517910 (issued Nov. 2005). 114 Id. An additional 14 firms had annual receipts of $25 million or more. 115 13 CFR 121.201, NAICS code 517211. 116 13 CFR 121.201, NAICS code 517212. VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 entire year.117 Of this total, 804 firms had employment of 999 or fewer employees, and three firms had employment of 1,000 employees or more.118 Thus, under this category and associated small business size standard, the majority of firms can be considered small. For the census category of Cellular and Other Wireless Telecommunications, Census Bureau data for 2002 show that there were 1,397 firms in this category that operated for the entire year.119 Of this total, 1,378 firms had employment of 999 or fewer employees, and 19 firms had employment of 1,000 employees or more.120 Thus, under this second category and size standard, the majority of firms can, again, be considered small. 76. 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.’’ 121 Under the SBA size standard, such a business is small if it has average annual receipts of $21 million or less.122 According to Census Bureau data for 1997, there were 2,751 firms in this category that operated for the entire year.123 Of these, 2,659 firms had annual receipts of under $10 million, and an additional 67 firms had receipts of between $10 million and $24,999,999.124 Thus, under this size standard, the great majority of firms can be considered small entities. 77. Cellular Licensees. The SBA has developed a small business size standard for wireless firms within the two broad economic census categories 117 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, ‘‘Establishment and Firm Size (Including Legal Form of Organization),’’ Table 5, NAICS code 517211 (issued Nov. 2005). 118 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is for firms with ‘‘1000 employees or more.’’ 119 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, ‘‘Establishment and Firm Size (Including Legal Form of Organization),’’ Table 5, NAICS code 517212 (issued Nov. 2005). 120 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is for firms with ‘‘1000 employees or more.’’ 121 Office of Management and Budget, North American Industry Classification System, page 515 (1997). NAICS code 518111, ‘‘On-Line Information Services.’’ 122 13 CFR 121.201, NAICS code 518111. 123 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 Oct. 2000). 124 Id. PO 00000 Frm 00041 Fmt 4700 Sfmt 4700 45919 of ‘‘Paging’’ 125 and ‘‘Cellular and Other Wireless Telecommunications.’’ 126 Under both categories, the SBA deems a wireless business to be small if it has 1,500 or fewer employees. For the census category of Paging, Census Bureau data for 2002 show that there were 807 firms in this category that operated for the entire year.127 Of this total, 804 firms had employment of 999 or fewer employees, and three firms had employment of 1,000 employees or more.128 Thus, under this category and associated small business size standard, the majority of firms can be considered small. For the census category of Cellular and Other Wireless Telecommunications, Census Bureau data for 2002 show that there were 1,397 firms in this category that operated for the entire year.129 Of this total, 1,378 firms had employment of 999 or fewer employees, and 19 firms had employment of 1,000 employees or more.130 Thus, under this second category and size standard, the majority of firms can, again, be considered small. 78. Common Carrier Paging. As noted, the SBA has developed a small business size standard for wireless firms within the broad economic census categories of ‘‘Cellular and Other Wireless Telecommunications.’’ 131 Under this SBA category, a wireless business is small if it has 1,500 or fewer employees. For the census category of Paging, U.S. Census Bureau data for 1997 show that there were 1,320 firms in this category, total, that operated for the entire year.132 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.133 Thus, under this category and 125 13 CFR 121.201, NAICS code 517211. CFR 121.201, NAICS code 517212. 127 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, ‘‘Establishment and Firm Size (Including Legal Form of Organization,’’ Table 5, NAICS code 517211 (issued Nov. 2005). 128 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is for firms with ‘‘1000 employees or more.’’ 129 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, ‘‘Establishment and Firm Size (Including Legal Form of Organization,’’ Table 5, NAICS code 517212 (issued Nov. 2005). 130 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is for firms with ‘‘1000 employees or more.’’ 131 13 CFR 121.201, NAICS code 517212. 132 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 Oct. 2000). 133 U.S. Census Bureau, 1997 Economic Census, Subject Series: ‘‘Information,’’ Table 5, Employment 126 13 E:\FR\FM\16AUR1.SGM Continued 16AUR1 45920 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES associated small business size standard, the great majority of firms can be considered small. 79. In addition, in the Paging Second Report and Order, the Commission adopted a size standard for ‘‘small businesses’’ for purposes of determining their eligibility for special provisions such as bidding credits and installment payments.134 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.135 The SBA has approved this definition.136 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.137 Fifty-seven companies claiming small business status won 440 licenses.138 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.139 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.140 Currently, there are approximately 74,000 Common Carrier Paging licenses. According to the most recent Trends in Size of Firms Subject to Federal Income Tax: 1997, NAICS code 513321 (issued Oct. 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.’’ 134 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). 135 Paging Second Report and Order, 12 FCC Rcd at 2811, para. 179. 136 See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, from Aida Alvarez, Administrator, Small Business Administration, dated Dec. 2, 1998. 137 See ‘‘929 and 931 MHz Paging Auction Closes,’’ Public Notice, 15 FCC Rcd 4858 (WTB 2000). 138 Id. 139 See ‘‘Lower and Upper Paging Band Auction Closes,’’ Public Notice, 16 FCC Rcd 21821 (WTB 2002). 140 See ‘‘Lower and Upper Paging Bands Auction Closes,’’ Public Notice, 18 FCC Rcd 11154 (WTB 2003). VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 Telephone Service, 408 private and common carriers reported that they were engaged in the provision of either paging or ‘‘other mobile’’ services.141 Of these, we estimate that 589 are small, under the SBA-approved small business size standard.142 We estimate that the majority of common carrier paging providers would qualify as small entities under the SBA definition. 80. 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.143 The SBA has approved these definitions.144 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. 81. 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.145 Under the SBA small business size standard, a business is small if it has 1,500 or fewer employees.146 According to Trends in Telephone Service data, 437 carriers reported that they were engaged in wireless telephony.147 We have estimated that 260 of these are small under the SBA small business size standard. 82. Broadband Personal Communications Service. The broadband personal communications 141 ‘‘Trends in Telephone Service’’ at Table 5.3. CFR 121.201, NAICS code 517211. 143 Amendment of the Commission’s Rules to Establish Part 27, the Wireless Communications Service (WCS), Report and Order, 12 FCC Rcd 10785, 10879, para. 194 (1997). 144 See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, SBA (Dec. 2, 1998). 145 13 CFR 121.201, NAICS code 517212. 146 Id. 147 ‘‘Trends in Telephone Service’’ at Table 5.3. 142 13 PO 00000 Frm 00042 Fmt 4700 Sfmt 4700 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.148 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.149 These small business size standards, in the context of broadband PCS auctions, have been approved by the SBA.150 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.151 On March 23, 1999, the Commission reauctioned 155 C, D, E, and F Block licenses; there were 113 small business winning bidders.152 83. 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.153 Subsequent events, concerning Auction 35, including judicial and agency determinations, resulted in a total of 163 C and F Block licenses being available for grant. On February 15, 2005, the Commission completed an auction of 188 C block licenses and 21 F block licenses in Auction No. 58. There were 148 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). 149 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. 150 See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, SBA (Dec. 2, 1998). 151 FCC News, ‘‘Broadband PCS, D, E and F Block Auction Closes,’’ No. 71744 (rel. Jan. 14, 1997). 152 See ‘‘C, D, E, and F Block Broadband PCS Auction Closes,’’ Public Notice, 14 FCC Rcd 6688 (WTB 1999). 153 See ‘‘C and F Block Broadband PCS Auction Closes; Winning Bidders Announced,’’ Public Notice, 16 FCC Rcd 2339 (2001). E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations 24 winning bidders for 217 licenses.154 Of the 24 winning bidders, 16 claimed small business status and won 156 licenses. On May 21, 2007, the Commission completed an auction of 38 Broadband PCS licenses in Auction No. 71, of which 26 were C block licenses and 6 were F block licenses. There were 12 winning bidders for the 33 C and F block licenses. Of the 12 winning bidders, four claimed small business status and won 16 licenses. 84. Narrowband Personal Communications Services. The Commission held an auction for Narrowband PCS licenses that commenced on July 25, 1994, and closed on July 29, 1994. A second auction commenced on October 26, 1994 and closed on November 8, 1994. For purposes of the first two Narrowband PCS auctions, ‘‘small businesses’’ were entities with average gross revenues for the prior three calendar years of $40 million or less.155 Through these auctions, the Commission awarded a total of 41 licenses, 11 of which were obtained by four small businesses.156 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.157 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.158 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.159 The SBA has approved these small business size standards.160 A third auction mstockstill on PROD1PC66 with RULES 154 See ‘‘Broadband PCS Spectrum Auction Closes; Winning Bidders Announced for Auction No. 58,’’ Public Notice, 20 FCC Rcd 3703 (2005). 155 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). 156 See ‘‘Announcing the High Bidders in the Auction of Ten Nationwide Narrowband PCS Licenses, Winning Bids Total $617,006,674,’’ Public Notice, PNWL 94–004 (rel. Aug. 2, 1994); ‘‘Announcing the High Bidders in the Auction of 30 Regional Narrowband PCS Licenses; Winning Bids Total $490,901,787,’’ Public Notice, PNWL 94–27 (rel. Nov. 9, 1994). 157 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). 158 Id. 159 Id. 160 See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 commenced on October 3, 2001 and closed on October 16, 2001. Here, five bidders won 317 (Metropolitan Trading Areas and nationwide) licenses.161 Three of these claimed status as a small or very small entity and won 311 licenses. 85. 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.162 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.163 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.164 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.165 The SBA has approved these small size standards.166 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.167 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 Communications Commission, from Aida Alvarez, Administrator, Small Business Administration, dated Dec. 2, 1998. 161 See ‘‘Narrowband PCS Auction Closes,’’ Public Notice, 16 FCC Rcd 18663 (WTB 2001). 162 See Reallocation and Service Rules for the 698–746 MHz Spectrum Band (Television Channels 52–59), Report and Order, 17 FCC Rcd 1022 (2002). 163 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). 164 Id. 165 See id. at 1088, para. 173. 166 See Letter to Thomas Sugrue, Chief, Wireless Telecommunications Bureau, Federal Communications Commission, from Aida Alvarez, Administrator, Small Business Administration, dated Aug. 10, 1999. 167 See ‘‘Lower 700 MHz Band Auction Closes,’’ Public Notice, 17 FCC Rcd 17272 (WTB 2002). PO 00000 Frm 00043 Fmt 4700 Sfmt 4700 45921 licenses.168 Seventeen winning bidders claimed small or very small business status and won 60 licenses, and nine winning bidders claimed entrepreneur status and won 154 licenses.169 On July 26, 2005, the Commission completed an auction of 5 licenses in the Lower 700 MHz band (Auction No. 60). There were three winning bidders for five licenses. All three winning bidders claimed small business status. 86. Upper 700 MHz Band Licenses. The Commission released a Report and Order, authorizing service in the upper 700 MHz band.170 This auction, previously scheduled for January 13, 2003, has been postponed.171 87. 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.172 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.173 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.174 SBA approval of these definitions is not required.175 An auction of 52 Major Economic Area (MEA) licenses commenced on September 6, 2000, and closed on September 21, 2000.176 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 168 See ‘‘Lower 700 MHz Band Auction Closes,’’ Public Notice, 18 FCC Rcd 11873 (WTB 2003). 169 See id. 170 See 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). 171 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). 172 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). 173 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). 174 See id. 175 See id. at 5343, 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). 176 See ‘‘700 MHz Guard Bands Auction Closes: Winning Bidders Announced,’’ Public Notice, 15 FCC Rcd 18026 (2000). E:\FR\FM\16AUR1.SGM 16AUR1 45922 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES commenced on February 13, 2001, and closed on February 21, 2001. All eight of the licenses auctioned were sold to three bidders. One of these bidders was a small business that won a total of two licenses.177 88. 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.178 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.179 The SBA has approved these small business size standards for the 900 MHz Service.180 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.181 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.182 89. 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 800 177 See ‘‘700 MHz Guard Bands Auction Closes: Winning Bidders Announced,’’ Public Notice, 16 FCC Rcd 4590 (WTB 2001). 178 47 CFR 90.814(b)(1). 179 47 CFR 90.814(b)(1). 180 See Letter to Thomas Sugrue, Chief, Wireless Telecommunications Bureau, Federal Communications Commission, from Aida Alvarez, Administrator, Small Business Administration, dated Aug. 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. 181 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). 182 See ‘‘Multi-Radio Service Auction Closes,’’ Public Notice, 17 FCC Rcd 1446 (WTB 2002). VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 MHz SMR band qualified as small businesses under the $15 million size standard.183 In an auction completed on December 5, 2000, a total of 2,800 Economic Area licenses in the lower 80 channels of the 800 MHz SMR service were sold.184 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. 90. 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. 91. 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.185 The Commission estimates that most such licensees are small businesses under the SBA’s small business standard. 92. 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 183 See ‘‘800 MHz Specialized Mobile Radio (SMR) Service General Category (851–854 MHz) and Upper Band (861–865 MHz) Auction Closes; Winning Bidders Announced,’’ Public Notice, 15 FCC Rcd 17162 (2000). 184 See ‘‘800 MHz SMR Service Lower 80 Channels Auction Closes; Winning Bidders Announced,’’ Public Notice, 16 FCC Rcd 1736 (2000). 185 13 CFR 121.201, NAICS code 517212. PO 00000 Frm 00044 Fmt 4700 Sfmt 4700 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.186 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.187 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.188 The SBA has approved these small size standards.189 Auctions of Phase II licenses commenced on September 15, 1998, and closed on October 22, 1998.190 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.191 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.192 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.193 93. 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 186 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). 187 Id. at 11068, para. 291. 188 Id. 189 See Letter to Daniel Phythyon, Chief, Wireless Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, SBA, (Jan. 6, 1998). 190 See generally ‘‘220 MHz Service Auction Closes,’’ Public Notice, 14 FCC Rcd 605 (1998). 191 See ‘‘FCC Announces It is Prepared to Grant 654 Phase II 220 MHz Licenses After Final Payment is Made,’’ Public Notice, 14 FCC Rcd 1085 (1999). 192 See ‘‘Phase II 220 MHz Service Spectrum Auction Closes,’’ Public Notice, 14 FCC Rcd 11218 (1999). 193 See ‘‘Multi-Radio Service Auction Closes,’’ Public Notice, 17 FCC Rcd 1446 (2002). E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations determining whether a licensee of a PLMR system is a small business as defined by the SBA, we use the broad census category, ‘‘Cellular and Other Wireless Telecommunications.’’ This definition provides that a small entity is any such entity employing no more than 1,500 persons.194 The Commission does not require PLMR licensees to disclose information about number of employees, so the Commission does not have information that could be used to determine how many PLMR licensees constitute small entities under this definition. We note that PLMR licensees generally use the licensed facilities in support of other business activities, and therefore, it would also be helpful to assess PLMR licensees under the standards applied to the particular industry subsector to which the licensee belongs.195 94. The Commission’s 1994 Annual Report on PLMRs 196 indicates that at the end of fiscal year 1994, there were 1,087,267 licensees operating 12,481,989 transmitters in the PLMR bands below 512 MHz. We note that any entity engaged in a commercial activity is eligible to hold a PLMR license, and that the revised rules in this context could therefore potentially impact small entities covering a great variety of industries. 95. Fixed Microwave Services. Fixed microwave services include common carrier,197 private operational-fixed,198 and broadcast auxiliary radio services.199 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 194 See 13 CFR 121.201, NAICS code 517212. generally 13 CFR 121.201. 196 Federal Communications Commission, 60th Annual Report, Fiscal Year 1994, at para. 116. 197 See 47 CFR 101 et seq. (formerly, Part 21 of the Commission’s Rules) for common carrier fixed microwave services (except Multipoint Distribution Service). 198 Persons eligible under parts 80 and 90 of the Commission’s Rules can use Private OperationalFixed Microwave services. See 47 C.F.R. Parts 80 and 90. Stations in this service are called operational-fixed to distinguish them from common carrier and public fixed stations. Only the licensee may use the operational-fixed station, and only for communications related to the licensee’s commercial, industrial, or safety operations. 199 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. mstockstill on PROD1PC66 with RULES 195 See VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 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.200 The Commission does not have data specifying the number of these licensees that have no more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of fixed microwave service licensees that would qualify as small business concerns under the SBA’s small business size standard. Consequently, the Commission estimates that there are 22,015 or fewer common carrier fixed licensees and 61,670 or fewer private operational-fixed licensees and broadcast auxiliary radio licensees in the microwave services that may be small and may be affected by the rules and policies proposed herein. We note, however, that the common carrier microwave fixed licensee category includes some large entities. 96. 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.201 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.202 The SBA has approved these small business size standards.203 The auction of the 2,173 39 GHz licenses began on April 12, 2000 and closed on May 8, 2000. The 18 bidders who claimed small business status won 849 licenses. 97. 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.204 The auction of CFR 121.201, NAICS code 517212. 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). 202 Id. 203 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); See Letter to Margaret Wiener, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, FCC, from Hector Barreto, Administrator, SBA, (Jan. 18, 2002). 204 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 45923 the 986 LMDS licenses began on February 18, 1998 and closed on March 25, 1998. The Commission established a small business size standard for LMDS licenses as an entity that has average gross revenues of less than $40 million in the three previous calendar years.205 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.206 The SBA has approved these small business size standards in the context of LMDS auctions.207 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 small and very small businesses winning that won 119 licenses. 98. 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’’).208 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.209 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.210 A very small business is defined as an entity that, together with its affiliates and persons or entities that 200 13 201 See PO 00000 Frm 00045 Fmt 4700 Sfmt 4700 on Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC Rcd 12545, 12689–90, para. 348 (1997). 205 See id. 206 See id. 207 See Letter to Dan Phythyon, Chief, Wireless Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, SBA (Jan. 6, 1998). 208 See ‘‘Interactive Video and Data Service (IVDS) Applications Accepted for Filing,’’ Public Notice, 9 FCC Rcd 6227 (1994). 209 Implementation of Section 309(j) of the Communications Act—Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330 (1994). 210 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). E:\FR\FM\16AUR1.SGM 16AUR1 45924 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations hold interests in such an entity and its affiliates, has average annual gross revenues not exceeding $3 million for the preceding three years.211 The SBA has approved of these definitions.212 A subsequent auction is not yet scheduled. Given the success of small businesses in the previous auction, and the prevalence of small businesses in the subscription television services and message communications industries, we assume for purposes of this analysis that in future auctions, many, and perhaps most, of the licenses may be awarded to small businesses. 99. Location and Monitoring Service (‘‘LMS’’). Multilateration LMS systems use non-voice radio techniques to determine the location and status of mobile radio units. For purposes of auctioning LMS licenses, the Commission has defined ‘‘small business’’ as an entity that, together with controlling interests and affiliates, has average annual gross revenues for the preceding three years not exceeding $15 million.213 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.214 These definitions have been approved by the SBA.215 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. 100. Rural Radiotelephone Service. The Commission has not adopted a size standard for small businesses specific to the Rural Radiotelephone Service.216 A significant subset of the Rural Radiotelephone Service is the Basic Exchange Telephone Radio System (‘‘BETRS’’).217 In the present context, we will use the SBA’s small business size standard applicable to ‘‘Cellular and Other Wireless Telecommunications,’’ i.e., an entity employing no more than 1,500 mstockstill on PROD1PC66 with RULES 218 13 CFR 121.201, NAICS code 517212. service is defined in section 22.99 of the Commission’s rules, 47 CFR 22.99. 220 13 CFR 121.201, NAICS codes 517212. 221 Amendment of Part 22 of the Commission’s Rules to Benefit the Consumers of Air-Ground Telecommunications Services, Biennial Regulatory Review—Amendment of Parts 1, 22, and 90 of the Commission’s Rules, Amendment of Parts 1 and 22 of the Commission’s Rules to Adopt Competitive Bidding Rules for Commercial and General Aviation Air-Ground Radiotelephone Service, WT Docket Nos. 03–103 and 05–42, Order on Reconsideration and Report and Order, 20 FCC Rcd 19663, paras. 28–42 (2005). 222 Id. 223 See Letter from Hector V. Barreto, Administrator, U.S. Small Business Administration, to Gary D. Michaels, Deputy Chief, Auctions and Spectrum Access Division, Wireless Telecommunications Bureau, Federal Communications Commission, dated Sept. 19, 2005. 219 The 211 Id. 212 See Letter to Daniel Phythyon, Chief, Wireless Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, SBA, (Jan. 6, 1998). 213 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. 214 Id. 215 See Letter to Thomas Sugrue, Chief, Wireless Telecommunications Bureau, Federal Communications Commission, from Aida Alvarez, Administrator, Small Business Administration, dated Feb. 22, 1999. 216 The service is defined in section 22.99 of the Commission’s rules, 47 CFR 22.99. 217 BETRS is defined in section 22.757 and 22.759 of the Commission’s rules, 47 CFR 22.757 and 22.759. VerDate Aug<31>2005 persons.218 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 adopted herein. 101. Air-Ground Radiotelephone Service.219 We have previously used the SBA’s small business definition applicable to ‘‘Cellular and Other Wireless Telecommunications,’’ i.e., an entity employing no more than 1,500 persons.220 There are approximately 100 licensees in the Air-Ground Radiotelephone Service, and under that definition, we estimate that almost all of them qualify as small entities under the SBA definition. For purposes of assigning Air-Ground Radiotelephone Service licenses through competitive bidding, the Commission has defined ‘‘small business’’ as an entity that, together with controlling interests and affiliates, has average annual gross revenues for the preceding three years not exceeding $40 million.221 A ‘‘very small business’’ is defined as an entity that, together with controlling interests and affiliates, has average annual gross revenues for the preceding three years not exceeding $15 million.222 These definitions were approved by the SBA.223 In May 2006, the Commission completed an auction of nationwide commercial Air-Ground Radiotelephone Service licenses in the 800 MHz band (Auction No. 65). On June 2, 2006, the auction closed with two winning bidders winning two Air-Ground Radiotelephone Services licenses. Neither of the winning bidders claimed small business status. 102. 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 16:47 Aug 15, 2007 Jkt 211001 PO 00000 Frm 00046 Fmt 4700 Sfmt 4700 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, we will use the SBA small business size standard for the category ‘‘Cellular and Other Telecommunications,’’ which is 1,500 or fewer employees.224 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.225 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. 103. Offshore Radiotelephone Service. This service operates on several ultra high frequencies (‘‘UHF’’) television broadcast channels that are not used for television broadcasting in the coastal areas of states bordering the Gulf of Mexico.226 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.227 224 13 CFR 121.201, NAICS code 517212. 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). 226 This service is governed by Subpart I of Part 22 of the Commission’s rules. See 47 CFR 22.1001– 22.1037. 227 13 CFR 121.201, NAICS code 517212. 225 Amendment E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations Under that SBA small business size standard, a business is small if it has 1,500 or fewer employees.228 104. 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.229 ‘‘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.230 The SBA has approved of these definitions.231 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, 2001.232 Seven winning bidders claimed status as small or very small businesses and won 611 licenses. On May 18, 2005, the Commission completed an auction (Auction No. 59) of 4,226 MAS licenses in the Fixed Microwave Services from the 928/959 and 932/941 MHz bands. Twenty-six winning bidders won a total of 2,323 licenses. Of the 26 winning bidders in this auction, five claimed small business status and won 1,891 licenses. 105. With respect to the second category, which consists of entities that use, or seek to use, MAS spectrum to accommodate internal communications needs, we note that MAS serves an essential role in a range of industrial, safety, business, and land transportation activities. MAS radios are used by companies of all sizes, operating in mstockstill on PROD1PC66 with RULES 228 Id. 229 See Amendment of the Commission’s Rules Regarding Multiple Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, para. 123 (2000). 230 Id. 231 See Letter to Thomas Sugrue, Chief, Wireless Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, SBA, (Jun. 4, 1999). 232 See ‘‘Multiple Address Systems Spectrum Auction Closes,’’ Public Notice, 16 FCC Rcd 21011 (2001). VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 virtually all U.S. business categories, and by all types of public safety entities. For the majority of private internal users, the small business size standard developed by the SBA would be more appropriate. The applicable size standard in this instance appears to be that of ‘‘Cellular and Other Wireless Telecommunications.’’ This definition provides that a small entity is any such entity employing no more than 1,500 persons.233 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. 106. Incumbent 24 GHz Licensees. This analysis may affect incumbent licensees who were relocated to the 24 GHz band from the 18 GHz band, and applicants who wish to provide services in the 24 GHz band. The applicable SBA small business size standard is that of ‘‘Cellular and Other Wireless Telecommunications’’ companies. This category provides that such a company is small if it employs no more than 1,500 persons.234 For the census category of Paging, Census Bureau data for 2002 show that there were 807 firms in this category that operated for the entire year.235 Of this total, 804 firms had employment of 999 or fewer employees, and three firms had employment of 1,000 employees or more.236 Thus, under this category and associated small business size standard, the majority of firms can be considered small. For the census category of Cellular and Other Wireless Telecommunications, Census Bureau data for 2002 show that there were 1,397 firms in this category that operated for the entire year.237 Of this total, 1,378 firms had employment of 999 or fewer employees, and 19 firms had employment of 1,000 employees or more.238 Thus, under this second category and size standard, the majority 233 See 13 CFR 121.201, NAICS code 517212. CFR 121.201, NAICS code 517212. 235 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, ‘‘Establishment and Firm Size (Including Legal Form of Organization),’’ Table 5, NAICS code 517211 (issued Nov. 2005). 236 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is for firms with ‘‘1000 employees or more.’’ 237 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, ‘‘Establishment and Firm Size (Including Legal Form of Organization),’’ Table 5, NAICS code 517212 (issued Nov. 2005). 238 Id. The census data do not provide a more precise estimate of the number of firms that have employment of 1,500 or fewer employees; the largest category provided is for firms with ‘‘1000 employees or more.’’ 234 13 PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 45925 of firms can, again, be considered small. These broader census data notwithstanding, we believe that there are only two licensees in the 24 GHz band that were relocated from the 18 GHz band, Teligent 239 and TRW, Inc. It is our understanding that Teligent and its related companies have fewer than 1,500 employees, though this may change in the future. TRW is not a small entity. Thus, only one incumbent licensee in the 24 GHz band is a small business entity. 107. New 24 GHz Licensees. With respect to new applicants in the 24 GHz band, we have defined an ‘‘entrepreneur’’ as an entity that, together with controlling interests and affiliates, has average annual gross revenues for the three preceding years not exceeding $40 million. ‘‘Small business’’ in the 24 GHz band is defined as an entity that, together with controlling interests and affiliates, has average annual gross revenues for the three preceding years not exceeding $15 million.240 ‘‘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.241 The SBA has approved these definitions.242 On July 28, 2004, the Commission completed an auction of 880 licenses. There were three winning bidders that won seven licenses. Of the three winning bidders, two claimed small business status and won five licenses. 108. Broadband Radio Service (‘‘BRS’’) and Educational Broadband Service (‘‘EBS’’). Broadband Radio Service systems, previously referred to as Multipoint Distribution Service (‘‘MDS’’) and Multichannel Multipoint Distribution Service (‘‘MMDS’’) systems, and ‘‘wireless cable,’’ transmit video programming to subscribers and provide two-way high speed data operations using the microwave frequencies of the Broadband Radio Service and Educational Broadband Service (previously referred to as the Instructional Television Fixed Service 239 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. 240 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). 241 24 GHz Report and Order, 15 FCC Rcd at 16967, para. 77; see also 47 CFR 101.538(a)(1). 242 See Letter to Margaret W. Wiener, Deputy Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, FCC, from Gary M. Jackson, Assistant Administrator, SBA, (Jul. 28, 2000). E:\FR\FM\16AUR1.SGM 16AUR1 45926 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES (‘‘ITFS’’).243 In connection with the 1996 BRS 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.244 The SBA has approved of this standard.245 The BRS auction resulted in 67 successful bidders obtaining licensing opportunities for 493 Basic Trading Areas (‘‘BTAs’’).246 Of the 67 auction winners, 61 claimed status as a small business. At this time, we estimate that of the 61 small business BRS auction winners, 48 remain small business licensees. BRS also includes licensees of stations authorized prior to the auction. In addition to the 48 small businesses that hold BTA authorizations, there are approximately 392 incumbent BRS licensees that are considered small entities.247 After adding the number of small business auction licensees to the number of incumbent licensees not already counted, we find that there are currently approximately 440 BRS licenses that are defined as small businesses under either the SBA or the Commission’s rules. 109. In addition, the SBA has developed a small business size standard for Cable and Other Program Distribution,248 which includes all such companies generating $13.5 million or less in annual receipts.249 According to the Census Bureau data for 2002, there were a total of 1,191 firms in this category that operated for the entire year.250 Of this total, 1,087 firms had annual receipts of under $10 million, and 43 firms had receipts of $10 million 243 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’’). 244 47 CFR 21.961(b)(1). 245 See Letter to Margaret Wiener, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, FCC, from Gary Jackson, Assistant Administrator for Size Standards, SBA, (Mar. 20, 2003) (noting approval of $40 million size standard for MDS auction). 246 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, para. 34. 247 For the incumbent BRS licensees who are granted licenses prior to implementation of Section 309(j) of the Communications Act of 1934, 47 U.S.C. 309(j), the applicable standard is SBA’s small business size standard. 248 13 CFR 121.201, NAICS code 517510. 249 Id. 250 U.S. Census Bureau 202 Economic Census, Subject Series: Information, Table 4, Receipts Size of Firms for the Untied States: 2002, NAICS code 517510 (issued Nov. 2005). VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 or more, but less than $25 million.251 Consequently, we estimate that the majority of providers in this service category are small businesses that may be affected by the rules and policies adopted herein. This SBA small business size standard is applicable to EBS. There are presently 2,032 EBS licensees. All but 100 of these licenses are held by educational institutions. Educational institutions are included in this analysis as small entities.252 Thus, we estimate that at least 1,932 licensees are small entities. EBS is a non-profit non-broadcast service. We do not collect, nor are we aware of other collections of, annual revenue data for EBS licensees. 110. Television Broadcasting. The Census Bureau defines this category as follows: ‘‘This industry comprises establishments primarily engaged in broadcasting images together with sound. These establishments operate television broadcasting studios and facilities for the programming and transmission of programs to the public.’’ 253 The SBA has created a small business size standard for Television Broadcasting entities, which is: such firms having $13 million or less in annual receipts.254 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 had revenues of $12 (twelve) million or less. We note, however, that in assessing whether a business concern qualifies as small under the above definition, business (control) affiliations 255 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. 111. In addition, an element of the definition of ‘‘small business’’ is that the entity not be dominant in its field of operation. We are unable at this time to 251 Id. An additional 61 firms had annual receipts of $25 million or more. 252 The term ‘‘small entity’’ within SBREFA applies to small organizations (nonprofits) and to small governmental jurisdictions (cities, counties, towns, townships, villages, school districts, and special districts with populations of less than 50,000). 5 U.S.C. 601(4)–(6). We do not collect annual revenue data on EBS licensees. 253 U.S. Census Bureau, 2002 NAICS Definitions, ‘‘515120 Television Broadcasting’’ (partial definition); http://www.census.gov/epcd/naics02/ def/NDEF515.HTM. 254 13 CFR 121.201, NAICS code 515120. 255 ‘‘Concerns are affiliates of each other when one concern controls or has the power to control the other or a third party or parties controls or has to power to control both.’’ 13 CFR 21.103(a)(1). PO 00000 Frm 00048 Fmt 4700 Sfmt 4700 define or quantify the criteria that would establish whether a specific television station is dominant in its field of operation. Accordingly, the estimate of small businesses to which rules may apply do not exclude any television station from the definition of a small business on this basis and are therefore over-inclusive to that extent. Also as noted, an additional element of the definition of ‘‘small business’’ is that the entity must be independently owned and operated. We note that it is difficult at times to assess these criteria in the context of media entities and our estimates of small businesses to which they apply may be over-inclusive to this extent. 112. There are also 2,117 low power television stations (LPTV).256 Given the nature of this service, we will presume that all LPTV licensees qualify as small entities under the above SBA small business size standard. 113. Radio Broadcasting. The SBA defines a radio broadcast entity that has $6 million or less in annual receipts as a small business.257 Business concerns included in this industry are those ‘‘primarily engaged in broadcasting aural programs by radio to the public.’’ 258 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 259 are included.260 Our estimate, therefore likely overstates the number of small businesses that might be affected by the rules adopted herein. 114. Auxiliary, Special Broadcast and Other Program Distribution Services. This service involves a variety of transmitters, generally used to relay broadcast programming to the public (through translator and booster stations) or within the program distribution chain 256 FCC News Release, ‘‘Broadcast Station Totals as of September 30, 2005.’’ 257 See OMB, North American Industry Classification System: United States, 1997, at 509 (1997) (Radio Stations) NAICS code 515112. 258 Id. 259 ‘‘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). 260 ‘‘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). E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations mstockstill on PROD1PC66 with RULES (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.261 115. The Commission estimates that there are approximately 3,868 FM translators and boosters.262 The Commission does not collect financial information on any broadcast facility, and the Department of Commerce does not collect financial information on these auxiliary broadcast facilities. We believe that most, if not all, of these auxiliary facilities could be classified as small businesses by themselves. We also recognize that most commercial translators and boosters are owned by a parent station which, in some cases, would be covered by the revenue definition of small business entity discussed above. These stations would likely have annual revenues that exceed the SBA maximum to be designated as a small business ($6.5 million for a radio station or $13.0 million for a TV station). Furthermore, they do not meet the Small Business Act’s definition of a ‘‘small business concern’’ because they are not independently owned and operated.263 116. Cable and Other Program Distribution. The Census Bureau defines this category as follows: ‘‘This industry comprises establishments primarily engaged as third-party distribution systems for broadcast programming. The establishments of this industry deliver visual, aural, or textual programming received from cable networks, local television stations, or radio networks to consumers via cable or direct-to-home satellite systems on a subscription or fee basis. These establishments do not generally originate programming material.’’ 264 The SBA has developed a small business size standard for Cable and Other Program Distribution, which is: all such firms having $13.5 million or less in annual receipts.265 According to Census Bureau data for 2002, there were a total of 1,191 firms in this category that operated for the entire 261 13 CFR 121.201, NAICS codes 513111 and 513112. 262 FCC News Release, ‘‘Broadcast Station Totals as of September 30, 2004.’’ 263 15 U.S.C. 632. 264 U.S. Census Bureau, 2002 NAICS Definitions, ‘‘517510 Cable and Other Program Distribution;’’ http://www.census.gov/epcd/naics02/def/ NDEF517.HTM. 265 13 CFR 121.201, NAICS code 517510. VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 year.266 Of this total, 1,087 firms had annual receipts of under $10 million, and 43 firms had receipts of $10 million or more but less than $25 million.267 Thus, under this size standard, the majority of firms can be considered small. 117. Cable Companies and Systems. The Commission has also developed its own small business size standards, for the purpose of cable rate regulation. Under the Commission’s rules, a ‘‘small cable company’’ is one serving 400,000 or fewer subscribers, nationwide.268 Industry data indicate that, of 1,076 cable operators nationwide, all but eleven are small under this size standard.269 In addition, under the Commission’s rules, a ‘‘small system’’ is a cable system serving 15,000 or fewer subscribers.270 Industry data indicate that, of 7,208 systems nationwide, 6,139 systems have less than 10,000 subscribers, and an additional 379 systems have 10,000–19,999 subscribers.271 Thus, under this second size standard, most cable systems are small. 118. Cable System Operators. The Communications Act of 1934, as amended, also contains a size standard for small cable system operators, which is ‘‘a cable operator that, directly or through an affiliate, serves in the aggregate fewer than 1 percent of all subscribers in the United States and is not affiliated with any entity or entities whose gross annual revenues in the aggregate exceed $250,000,000.’’272 The Commission has determined that an operator serving fewer than 645,000 subscribers shall be deemed a small operator, if its annual revenues, when combined with the total annual revenues of all its affiliates, do not 266 U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, Table 4, Receipts Size of Firms for the United States: 2002, NAICS code 517510 (issued Nov. 2005). 267 Id. An additional 61 firms had annual receipts of $25 million or more. 268 47 CFR 76.901(e). The Commission determined that this size standard equates approximately to a size standard of $100 million or less in annual revenues. Implementation of Sections of the 1992 Cable Act: Rate Regulation, Sixth Report and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393, 7408 (1995). 269 These data are derived from: R.R. Bowker, Broadcasting & Cable Yearbook 2006, ‘‘Top 25 Cable/Satellite Operators,’’ pages A–8 & C–2 (data current as of June 30, 2005); Warren Communications News, Television & Cable Factbook 2006, ‘‘Ownership of Cable Systems in the United States,’’ pages D–1805 to D–1857. 270 47 CFR 76.901(c). 271 Warren Communications News, Television & Cable Factbook 2006, ‘‘U.S. Cable Systems by Subscriber Size,’’ page F–2 (data current as of Oct. 2005). The data do not include 718 systems for which classifying data were not available. 272 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1–3. PO 00000 Frm 00049 Fmt 4700 Sfmt 4700 45927 exceed $250 million in the aggregate.273 Industry data indicate that, of 1,076 cable operators nationwide, all but ten are small under this size standard.274 We note that the Commission neither requests nor collects information on whether cable system operators are affiliated with entities whose gross annual revenues exceed $250 million,275 and therefore we are unable to estimate more accurately the number of cable system operators that would qualify as small under this size standard. 119. Open Video Services. Open Video Service (‘‘OVS’’) systems provide subscription services.276 The SBA has created a small business size standard for Cable and Other Program Distribution.277 This standard provides that a small entity is one with $13.5 million or less in annual receipts. The Commission has certified approximately 25 OVS operators to serve 75 areas, and some of these are currently providing service.278 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 adopted herein. 120. Cable Television Relay Service. This service includes transmitters generally used to relay cable programming within cable television system distribution systems. The SBA has developed a small business size standard for Cable and Other Program 273 47 CFR 76.901(f); see Public Notice, FCC Announces New Subscriber Count for the Definition of Small Cable Operator, DA 01–158 (Cable Services Bureau, Jan. 24, 2001). 274 These data are derived from: R.R. Bowker, Broadcasting & Cable Yearbook 2006, ‘‘Top 25 Cable/Satellite Operators,’’ pages A–8 & C–2 (data current as of June 30, 2005); Warren Communications News, Television & Cable Factbook 2006, ‘‘Ownership of Cable Systems in the United States,’’ pages D–1805 to D–1857. 275 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). 276 See 47 U.S.C. 573. 277 13 CFR 121.201, NAICS code 517510. 278 See http://www.fcc.gov/csb/ovs/csovscer.html (current as of March 2002). E:\FR\FM\16AUR1.SGM 16AUR1 45928 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations Distribution, which is: all such firms having $13.5 million or less in annual receipts.279 According to Census Bureau data for 2002, there were a total of 1,191 firms in this category that operated for the entire year.280 Of this total, 1,087 firms had annual receipts of under $10 million, and 43 firms had receipts of $10 million or more but less than $25 million.281 Thus, under this size standard, the majority of firms can be considered small. 121. Multichannel Video Distribution and Data Service. MVDDS is a terrestrial fixed microwave service operating in the 12.2–12.7 GHz band. The Commission adopted criteria for defining three groups of small businesses for purposes of determining their eligibility for special provisions such as bidding credits. It defined a very small business as an entity with average annual gross revenues not exceeding $3 million for the preceding three years; a small business as an entity with average annual gross revenues not exceeding $15 million for the preceding three years; and an entrepreneur as an entity with average annual gross revenues not exceeding $40 million for the preceding three years.282 These definitions were approved by the SBA.283 On January 27, 2004, the Commission completed an auction of 214 MVDDS licenses (Auction No. 53). In this auction, ten winning bidders won a total of 192 MVDDS licenses.284 Eight of the ten winning bidders claimed small business status and won 144 of the licenses. The Commission also held an auction of MVDDS licenses on December 7, 2005 (Auction 63). Of the three winning bidders who won 22 licenses, two 279 13 CFR 121.201, NAICS code 517510. Census Bureau, 2002 Economic Census, Subject Series: Information, Table 4, Receipts Size of Firms for the United States: 2002, NAICS code 517510 (issued Nov. 2005). 281 Id. An additional 61 firms had annual receipts of $25 million or more. 282 Amendment of Parts 2 and 25 of the Commission’s Rules to Permit Operation of NGSO FSS Systems Co-Frequency with GSO and Terrestrial Systems in the Ku-Band Frequency Range; Amendment of the Commission’s Rules to Authorize Subsidiary Terrestrial Use of the 12.2– 12.7 GHz Band by Direct Broadcast Satellite Licenses and their Affiliates; and Applications of Broadwave USA, PDC Broadband Corporation, and Satellite Receivers, Ltd. to provide A Fixed Service in the 12.2–12.7 GHz Band, ET Docket No. 98–206, Memorandum Opinion and Order and Second Report and Order, 17 FCC Rcd 9614, 9711, para. 252 (2002). 283 See Letter from Hector V. Barreto, Administrator, U.S. Small Business Administration, to Margaret W. Wiener, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, dated Feb. 13, 2002. 284 See ‘‘Multichannel Video Distribution and Data Service Auction Closes,’’ Public Notice, 19 FCC Rcd 1834 (2004). mstockstill on PROD1PC66 with RULES 280 U.S. VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 winning bidders, winning 21 of the licenses, claimed small business status.285 122. Amateur Radio Service. These licensees are held by individuals in a noncommercial capacity; these licensees are not small entities. 123. Aviation and Marine Services. Small businesses in the aviation and marine radio services use a very high frequency (‘‘VHF’’) marine or aircraft radio and, as appropriate, an emergency position-indicating radio beacon (and/or radar) or an emergency locator transmitter. The Commission has not developed a small business size standard specifically applicable to these small businesses. For purposes of this analysis, the Commission uses the SBA small business size standard for the category ‘‘Cellular and Other Telecommunications,’’ which is 1,500 or fewer employees.286 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.287 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. 124. Personal Radio Services. Personal radio services provide shortrange, low power radio for personal 285 See ‘‘Auction of Multichannel Video Distribution and Data Service Licenses Closes; Winning Bidders Announced for Auction No. 63,’’ Public Notice, 20 FCC Rcd 19807 (2005). 286 13 CFR 121.201, NAICS code 517212. 287 Amendment of the Commission’s Rules Concerning Maritime Communications, Third Report and Order and Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998). PO 00000 Frm 00050 Fmt 4700 Sfmt 4700 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.288 These services include Citizen Band Radio Service (‘‘CB’’), General Mobile Radio Service (‘‘GMRS’’), Radio Control Radio Service (‘‘R/C’’), Family Radio Service (‘‘FRS’’), Wireless Medical Telemetry Service (‘‘WMTS’’), Medical Implant Communications Service (‘‘MICS’’), Low Power Radio Service (‘‘LPRS’’), and Multi-Use Radio Service (‘‘MURS’’).289 There are a variety of methods used to license the spectrum in these rule parts, from licensing by rule, to conditioning operation on successful completion of a required test, to site-based licensing, to geographic area licensing. Under the RFA, the Commission is required to make a determination of which small entities are directly affected by the rules being adopted. 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.290 Many of the licensees in these services are individuals, and thus are not small entities. In addition, due to the mostly unlicensed and shared nature of the spectrum utilized in many of these services, the Commission lacks direct information upon which to base an estimation of the number of small entities under an SBA definition that might be directly affected by the rules adopted herein. 125. Public Safety Radio Services. Public Safety radio services include police, fire, local government, forestry conservation, highway maintenance, and emergency medical services.291 288 47 CFR part 90. 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. 290 13 CFR 121.201, NAICS Code 517212. 291 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 289 The E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations There are a total of approximately 127,540 licensees in these services. Governmental entities 292 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.293 mstockstill on PROD1PC66 with RULES IV. Description of Projected Reporting, Recordkeeping and Other Compliance Requirements 126. With certain exceptions, the Commission’s Schedule of Regulatory Fees applies to all Commission licensees and regulatees. Most licensees will be required to count the number of licenses or call signs authorized, complete and submit an FCC Form 159 Remittance Advice, and pay a regulatory fee based on the number of licenses or call signs.294 Interstate telephone service providers must compute their licensees from state departments of conservation and private forest organizations who set up communications networks among fire lookout towers and ground crews. The approximately 9,000 state and local governments are licensed to highway maintenance service provide emergency and routine communications to aid other public safety services to keep main roads safe for vehicular traffic. The approximately 1,000 licensees in the Emergency Medical Radio Service (‘‘EMRS’’) use the 39 channels allocated to this service for emergency medical service communications related to the delivery of emergency medical treatment. 47 CFR 90.15–90.27. The approximately 20,000 licensees in the special emergency service include medical services, rescue organizations, veterinarians, handicapped persons, disaster relief organizations, school buses, beach patrols, establishments in isolated areas, communications standby facilities, and emergency repair of public communications facilities. 47 CFR 90.33–90.55. 292 47 CFR 1.1162. 293 5 U.S.C. 601(5). 294 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. VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 annual regulatory fee based on their interstate and international end-user revenue using information they already supply to the Commission in compliance with the Form 499–A, Telecommunications Reporting Worksheet, and they must complete and submit the FCC Form 159. Compliance with the fee schedule will require some licensees to tabulate the number of units (e.g., cellular telephones, pagers, cable TV subscribers) they have in service, and complete and submit an FCC Form 159. Licensees ordinarily will keep a list of the number of units they have in service as part of their normal business practices. No additional outside professional skills are required to complete the FCC Form 159, and it can be completed by the employees responsible for an entity’s business records. 127. Each licensee must submit the FCC Form 159 to the Commission’s lockbox bank after computing the number of units subject to the fee. Licensees may also file electronically to minimize the burden of submitting multiple copies of the FCC Form 159. Applicants who pay small fees in advance and provide fee information as part of their application must use FCC Form 159. 128. Licensees and regulatees are advised that failure to submit the required regulatory fee in a timely manner will subject the licensee or regulatee to a late payment penalty of 25 percent in addition to the required fee.295 If payment is not received, new or pending applications may be dismissed, and existing authorizations may be subject to rescission.296 Further, in accordance with the Debt Collection Improvement Act of 1996 (DCIA), Public Law 194–134, 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.297 Nonpayment of regulatory fees is a debt owed the United States pursuant to 31 U.S.C. 3711 et seq., and the DCIA. Appropriate enforcement measures as well as administrative and judicial remedies, may be exercised by the Commission. Debts owed to the Commission may result in a person or entity being denied a federal loan or loan guarantee pending before another federal agency until such obligations are paid.298 129. The Commission’s rules currently provide for relief in CFR 1.1164. CFR 1.1164(c). 297 Public Law 104–134, 110 Stat. 1321 (1996). 298 31 U.S.C. 7701(c)(2)(B). exceptional circumstances. Persons or entities may request a waiver, reduction or deferment of payment of the regulatory fee.299 However, timely submission of the required regulatory fee must accompany requests for waivers or reductions. This will avoid any late payment penalty if the request is denied. The fee will be refunded if the request is granted. In exceptional and compelling instances (where payment of the regulatory fee along with the waiver or reduction request could result in reduction of service to a community or other financial hardship to the licensee), the Commission will defer payment in response to a request filed with the appropriate supporting documentation. V. Steps Taken To Minimize Significant Economic Impact on Small Entities, and Significant Alternatives Considered 130. The RFA requires an agency to describe any significant alternatives that it has considered in reaching its proposed approach, which may include the following four alternatives: (1) The establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; (2) the clarification, consolidation, or simplification of compliance or reporting requirements under the rule for small entities; (3) the use of performance, rather than design, standards; and (4) an exemption from coverage of the rule, or any part thereof, for small entities.300 In the NPRM, we sought comment on alternatives that might simplify our fee procedures or otherwise benefit filers, including small entities, while remaining consistent with our statutory responsibilities in this proceeding. 131. The Omnibus Appropriations Act for FY 2007, Public Law 109–383, 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 FY 2007.301 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. 132. Several categories of licensees and regulatees are exempt from payment of regulatory fees. See, e.g., footnote 294, supra. Also, waiver procedures provide regulatees, including small 295 47 296 47 PO 00000 Frm 00051 Fmt 4700 Sfmt 4700 45929 299 47 CFR 1.1166. U.S.C. 603. 301 47 U.S.C. 159(a). 300 5 E:\FR\FM\16AUR1.SGM 16AUR1 45930 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations entity regulatees, relief in exceptional circumstances. See Section IV, supra. 133. 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. 134. Report to Congress: The Commission will send a copy of this 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 2007 In order to calculate individual service fees for FY 2007, we adjusted FY 2006 payment units for each service to more accurately reflect expected FY 2007 payment liabilities. We obtained our updated estimates through a variety of means. For example, we used Commission licensee data bases, actual prior year payment records and industry and trade association projections when available. The databases we consulted include our Universal Licensing System (ULS), International Bureau Filing System (IBFS), Consolidated Database System (CDBS) and Cable Operations and Licensing System (COALS), as well as reports generated within the Commission such as the Wireline Competition Bureau’s Trends in Telephone Service and the Wireless Telecommunications Bureau’s Numbering Resource Utilization Forecast. We tried to obtain verification for these estimates from multiple sources and in all cases; we compared FY 2007 estimates with actual FY 2006 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 2007 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 2007 payment units are based on FY 2006 actual payment units, it does not necessarily mean that our FY 2007 projection is exactly the same number as FY 2006. It means that we have either rounded the FY 2007 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 Mobile Services ....................................... CMRS Messaging Services ................................ AM/FM Radio Stations ........................................ UHF/VHF Television Stations ............................. AM/FM/TV Construction Permits ........................ LPTV, Translators and Boosters, Class A Television. Broadcast Auxiliaries .......................................... BRS (formerly MDS/MMDS) ............................... Cable Television Relay Service (CARS) Stations. Cable Television System Subscribers ................ 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 reports. Based on Wireless Telecommunications Bureau Competition Report findings. Based on CDBS data, adjusted for exemptions, and actual FY 2006 payment units. Based on CDBS data, adjusted for exemptions, and actual FY 2006 payment units. Based on CDBS data, adjusted for exemptions, and actual FY 2006 payment units. Based on CDBS data, adjusted for exemptions, and actual FY 2006 payment units. Interstate Telecommunication Service Providers Earth Stations ..................................................... Space Stations (GSOs & NGSOs) ..................... International Bearer Circuits ............................... International HF Broadcast Stations, International Public Fixed Radio Service. Attachment C—Calculation of FY 2007 Revenue Requirements and Pro-Rata Fees Regulatory fees for the categories shaded in gray are collected by the mstockstill on PROD1PC66 with RULES PLMRS (Exclusive Use) ............................ PLMRS (Shared use) ................................ Microwave ................................................. 218–219 MHz (Formerly IVDS) ................ Marine (Ship) ............................................. GMRS ........................................................ Aviation (Aircraft) ....................................... Marine (Coast) .......................................... Aviation (Ground) ...................................... Amateur Vanity Call Signs ........................ 16:47 Aug 15, 2007 Based on publicly available data sources for estimated subscriber counts and actual FY 2006 payment units. Based on actual FY 2006 interstate revenues reported on Telecommunications Reporting Worksheet, adjusted for FY 2007 revenue growth/decline for industry, and projections by the Wireline Competition Bureau. Based on International Bureau reports and actual FY 2006 payment units. Based on International Bureau reports and actual FY 2006 payment units. Based on International Bureau reports and actual FY 2006 payment units. Based on International Bureau reports and actual FY 2006 payment units. 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 2007 payment units Fee category VerDate Aug<31>2005 Based on actual FY 2006 payment units. Based on Wireless Telecommunications Bureau reports and actual FY 2006 payment units. Based on data from Media Bureau’s COALS database and actual FY 2006 payment units. Jkt 211001 1,250 15,500 4,350 3 8,000 16,000 8,800 360 1,650 14,700 PO 00000 FY 2006 revenue estimate Years Frm 00052 Pro-rated FY 2007 revenue requirement * Computed new FY 2007 regulatory fee Rounded new FY 2007 regulatory fee Expected FY 2007 revenue 440,000 2,500,000 1,700,000 1,650 800,000 425,000 300,000 120,000 150,000 177,116 426,300 2,422,162 1,647,070 1,599 775,092 411,768 290,659 116,264 145,330 171,601 34 16 38 53 10 5 3 32 9 1.17 35 15 40 55 10 5 5 30 10 1.17 437,500 2,325,000 1,740,000 1,650 800,000 400,000 440,000 108,000 165,000 171,990 10 10 10 10 10 5 10 10 10 10 Fmt 4700 Sfmt 4700 E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations FY 2007 payment units Fee category 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 ........................... VHF 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/Class A TV .... CARS Stations .......................................... Cable TV Systems .................................... Interstate Tele-communication Service Providers ................................................ CMRS Mobile Services (Cellular/Public Mobile) ................................................... CMRS Messag. Services .......................... BRS 2 ......................................................... LMDS ........................................................ International Bearer Circuits ..................... International Public Fixed .......................... Earth Stations ............................................ International HF Broadcast ....................... Space Stations (Geostationary) ................ Space Stations (Non-Geostationary) ........ ****** Total Estimated Revenue to be Collected ......................................... ****** Total Revenue Requirement ..... Difference .................................... 45931 FY 2006 revenue estimate Years Pro-rated FY 2007 revenue requirement * Computed new FY 2007 regulatory fee Rounded new FY 2007 regulatory fee Expected FY 2007 revenue 68 1,567 937 1,705 3,027 3,002 65 205 125 3 43 61 77 115 198 3 91 76 115 168 183 22 27,000 3,400 780 64,500,000 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 1 217,350 2,619,500 921,500 3,095,750 6,519,500 7,924,300 37,525 115,000 141,450 1,710 2,850,100 2,914,275 2,465,625 2,372,200 1,045,200 30,600 1,846,750 1,528,000 1,284,075 1,092,000 331,925 33,725 240,000 1,218,000 148,750 49,770,000 210,428 2,534,141 890,541 2,994,982 6,311,615 7,675,996 26,003 117,898 137,046 1,657 2,765,285 2,827,462 2,392,781 2,300,839 1,012,657 15,377 1,787,645 1,478,819 1,242,489 1,056,977 321,590 38,517 232,528 1,180,077 144,119 48,220,399 3,095 1,617 950 1,757 2,085 2,557 400 575 1,096 552 64,309 46,352 31,075 20,007 5,114 5,126 19,644 19,458 10,804 6,292 1,757 1,751 9 347 185 0.74760 3,100 1,625 950 1,750 2,075 2,550 400 575 1,100 550 64,300 46,350 31,075 20,000 5,125 5,125 19,650 19,450 10,800 6,300 1,750 1,750 10 345 185 0.75 210,800 2,546,375 890,150 2,983,750 6,281,025 7,655,100 26,000 117,875 137,500 1,650 2,764,900 2,827,350 2,392,775 2,300,000 1,014,750 15,375 1,788,150 1,478,200 1,242,000 1,058,400 320,250 38,500 270,000 1,173,000 144,300 48,375,000 51,000,000,000 1 140,184,000 135,819,336 0.00266312 0.00266 135,660,000 229,000,000 7,500,000 1,300 410 7,200,000 1 3,900 5 86 6 1 1 1 1 1 1 1 1 1 1 42,000,000 520,000 485,925 90,750 7,791,000 1,925 752,500 4,100 9,693,975 721,350 40,596,052 600,077 425,139 134,077 7,548,425 1,865 729,071 3,972 9,392,151 698,891 0.177 0.08 327 327 1.05 1,865 187 794 109,211 116,482 0.18 0.08 325 325 1.05 1,875 185 795 109,200 116,475 41,220,000 600,000 422,500 133,250 7,560,000 1,875 721,500 3,975 9,391,200 698,850 ............................ ............................ ............................ ........................ ........................ ........................ 299,624,101 298,771,000 853,101 290,274,768 290,295,160 (20,392) ........................ ........................ ........................ ........................ ........................ ........................ 291,055,465 290,295,160 760,305 *¥0.028369018 factor applied based on the amount Congress designated for recovery through regulatory fees (Pub. L. 109–108 and 47 U.S.C. 159(a)(2)). 1 The AM and FM Construction Permit revenues and the VHF and UHF Construction Permit revenues were adjusted to set the regulatory fee to an amount no higher than the lowest licensed fee for that class of service. 2 MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission’s Rules to Facilitate the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150–2162 and 2500–2690 MHz Bands, Report & Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, para. 6 (2004) (R&O and FNPRM). Attachment D—FY 2007 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) mstockstill on PROD1PC66 with RULES 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 (per call sign) (47 CFR part 101) ....................................................................................... AM Radio Construction Permits .................................................................................................................................................... FM Radio Construction Permits .................................................................................................................................................... VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 PO 00000 Frm 00053 Fmt 4700 Sfmt 4700 E:\FR\FM\16AUR1.SGM 16AUR1 35 40 55 10 30 5 15 15 5 10 1.17 .18 .08 325 325 400 575 45932 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations Annual regulatory fee (U.S. $’s) Fee category 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, Class A 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) ............................................................................................................................. 64,300 46,350 31,075 20,000 5,125 5,125 19,650 19,450 10,800 6,300 1,750 1,750 1,100 550 345 10 185 .75 .00266 185 109,200 116,475 1.05 1,875 795 FY 2007 Schedule of Regulatory Fees (Continued) FY 2007 RADIO STATION REGULATORY FEES Population served <=25,000 .......................... 25,001–75,000 ................. 75,001–150,000 ............... 150,001–500,000 ............. 500,001–1,200,000 .......... 1,200,001–3,000,000 ....... >3,000,000 ....................... AM Class A AM Class B 625 1,225 1,825 2,750 3,950 6,075 7,275 Attachment E—Factors, Measurements and Calculations That Go Into Determining Station Signal Contours and Associated Population Coverages mstockstill on PROD1PC66 with RULES 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 VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 AM Class C 475 925 1,150 1,950 2,975 4,575 5,475 AM Class D 400 600 800 1,200 2,000 3,000 3,800 calculated using techniques and methods specified in sections 73.150 and 73.152 of the Commission’s rules.302 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 R3.303 Using the calculated horizontal radiation values, and the retrieved soil conductivity data, the distance to the principal community (5 mV/m) contour was predicted for each of the 360 radials. The resulting distance to principal community contours were used to form a geographical polygon. 302 47 CFR 73.150 and 73.152. Map of Estimated Effective Ground Conductivity in the United States, 47 CFR 73.190 Figure R3. 303 See PO 00000 Frm 00054 Fmt 4700 Sfmt 4700 FM Classes A, B1 & C3 475 725 1,200 1,425 2,375 3,800 4,750 575 1,150 1,600 2,475 3,900 6,350 8,075 FM Classes B, C, C0, C1 & C2 725 1,250 2,300 3,000 4,400 7,025 9,125 Population counting was accomplished by determining which 2000 block centroids were contained in the polygon. (A block centroid is the center point of a small area containing population as computed by the U.S. Census Bureau.) The sum of the population figures for all enclosed blocks represents the total population for the predicted principal community coverage area. 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 E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations specific HAAT figures for each of 360 radials under study. Any available directional pattern information was applied as well, to produce a radialspecific ERP figure. The HAAT and ERP figures were used in conjunction with the Field Strength (50–50) propagation curves specified in 47 CFR 73.313 of the Commission’s rules to predict the distance to the principal community (70 dBu (decibel above 1 microVolt per meter) or 3.17 mV/m) contour for each of the 360 radials.304 The resulting distance to principal community contours were used to form a geographical polygon. Population counting was accomplished by determining which 2000 block centroids 45933 were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted principal community coverage area. Attachment F—FY 2006 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 license 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 ...................................................................................................................................................................... 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) ............................................................................................................................. 20 85 55 10 20 5 10 10 5 10 2.08 .20 .08 275 275 395 575 64,775 47,775 32,875 20,450 5,025 3,400 20,750 19,100 10,975 6,500 1,775 1,775 1,150 570 420 10 175 .79 .00264 215 111,425 120,225 1.47 1,925 820 FY 2006 Schedule of Regulatory Fees (Continued) FY 2006.—RADIO STATION REGULATORY FEES mstockstill on PROD1PC66 with RULES Population served <=25,000 .......................... 25,001–75,000 ................. 75,001–150,000 ............... 304 47 AM Class A AM Class B 625 1,225 1,850 AM Class C 500 950 1,200 AM Class D 400 600 800 FM Classes A, B1 & C3 475 725 1,200 575 1,150 1,575 CFR 73.313. VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 PO 00000 Frm 00055 Fmt 4700 Sfmt 4700 E:\FR\FM\16AUR1.SGM 16AUR1 FM Classes B, C, C0, C1 & C2 750 1,325 2,450 45934 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations FY 2006.—RADIO STATION REGULATORY FEES—Continued Population served 150,001–500,000 ............. 500,001–1,200,000 .......... 1,200,001–3,000,00 ......... >3,000,000 ....................... AM Class A AM Class B 2,775 4,000 6,150 7,375 AM Class C 2,025 3,100 4,750 5,700 AM Class D 1,200 2,000 3,000 3,800 FM Classes A, B1 & C3 1,425 2,375 3,800 4,750 FM Classes B, C, C0, C1 & C2 2,450 3,875 6,325 8,050 Attachment G Parties Filing Reply Comments Attachment H—Rule Changes Parties Filing Comments on the Notice of Proposed Rulemaking American Association of Paging Carriers (‘‘AAPC’’) ARCOS–1 USA, Inc., Brasil Telecom of American, Inc., Caribbean Crossing Ltd., Global Crossing Ltd., Hibernia Atlantic, Pacific Crossing Limited and PC Landing Corp. (‘‘Joint Comments’’) Comcast Corporation (‘‘Comcast’’) Iowa Utilities Board (‘‘IUB’’) National Telecommunications Cooperative Association (‘‘NTCA’’) Nuvio Corporation (‘‘Nuvio’’) USA Mobility, Inc. (‘‘USA Mobility’’) Voice on the Net Coalition (‘‘VON Coalition’’) Dave Wilson Wireless Communications Association International, Inc. (‘‘WCA’’) American Cable Association (‘‘ACA’’) Enterprise Wireless Alliance (‘‘EWA’’) National Cable & Telecommunication Association (‘‘NCTA’’) National Exchange Carrier Association, Inc. (‘‘NECA’’); the National Telecommunications Cooperative Association (‘‘NTCA’’); the Organization for the Promotion and Advancement of Small Telecommunications Companies (‘‘OPASTCO’’); and the Western Telecommunications Alliance (‘‘WTA’’) (‘‘the Associations’’) Voice on the Net Coalition (‘‘VON Coalition’’) Wireless Communications Association International, Inc. (‘‘WCA’’) I Exclusive use services (per license) mstockstill on PROD1PC66 with RULES 3,200 4,700 7,500 9,750 16:47 Aug 15, 2007 Jkt 211001 PART 1—PRACTICE AND PROCEDURE 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. Fee amount1 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 Part 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) .. VerDate Aug<31>2005 For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR part 1 to read as follows: PO 00000 Frm 00056 $35.00 35.00 35.00 35.00 Address 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. 35.00 35.00 35.00 35.00 FCC, P.O. Box 358245, Pittsburgh, PA 15251–5245. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 40.00 40.00 40.00 40.00 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. 55.00 55.00 55.00 55.00 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. 15.00 15.00 FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 15.00 15.00 FCC, P.O. Box 358245, Pittsburgh, PA 15251–5245. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 5.00 5.00 FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 5.00 5.00 Fmt 4700 FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. FCC, P.O. Box 358245, Pittsburgh, PA 15251–5245. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. Sfmt 4700 E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations Exclusive use services (per license) 5. 6. 7. 8. 9. Fee amount1 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) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159). (c) Renewal Only (FCC 601 & 159) ............................... (d) Renewal Only (Electronic Filing) (FCC 601 & 159) .. Aviation Ground (a) New, Renewal/Mod (FCC 601 & 159) ...................... (b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159). (c) Renewal Only (FCC 601 & 159) ............................... (d) Renewal Only (Electronic Only) (FCC 601 & 159) ... Marine Ship (a) New, Renewal/Mod (FCC 605 & 159) ...................... (b) New, Renewal/Mod (Electronic Filing) (FCC 605 & 159). (c) Renewal Only (FCC 605 & 159) ............................... (d) Renewal Only (Electronic Filing) (FCC 605 & 159) .. Aviation Aircraft (a) New, Renew/Mod (FCC 605 & 159) ......................... (b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159). (c) Renewal Only (FCC 605 & 159) ............................... (d) Renewal Only (Electronic Filing) (FCC 605 & 159) .. Amateur Vanity Call Signs (a) Initial or Renew (FCC 605 & 159) ................................... (b) Initial or Renew (Electronic Filing) (FCC 605 & 159) ...... CMRS Mobile Services (per unit) (FCC 159) ........................... CMRS Messaging Services (per unit) (FCC 159) .................... Broadband Radio Service (formerly MMDS and MDS) ............ Local Multipoint Distribution Service ......................................... 45935 Address 15.00 FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 15.00 FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 30.00 30.00 FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 30.00 30.00 FCC, P.O. Box 358245, Pittsburgh, PA 15251–5245. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 10.00 10.00 FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 10.00 10.00 FCC, P.O. Box 358245, Pittsburgh, PA 15251–5245. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 10.00 10.00 FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 10.00 10.00 FCC, P.O. Box 358245, Pittsburgh, PA 15251–5245. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 5.00 5.00 FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 5.00 5.00 FCC, P.O. Box 358245, Pittsburgh, PA 15251–5245. FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. 1.17 1.17 2.18 2.08 325 325 FCC, FCC, FCC, FCC, FCC, FCC, P.O. Box 358130, Pittsburgh, PA 15251–5130. P.O. Box 358994, Pittsburgh, PA 15251–5994. P.O. Box 358835, Pittsburgh, PA 15251–5835. P.O. Box 358835, Pittsburgh, PA 15251–5835. Multipoint, P.O. Box 358835, Pittsburgh, PA 15251–5835. 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 section 1.1102 of this chapter. 2 These are standard fees that are to be paid in accordance with § 1.1157(b) of this chapter. 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. Fee amount mstockstill on PROD1PC66 with RULES Radio [AM and FM] (47 CFR part 73) 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 ................................................................................ VerDate Aug<31>2005 18:00 Aug 15, 2007 Jkt 211001 PO 00000 Frm 00057 Fmt 4700 Sfmt 4700 $625 Address FCC, Radio, P.O. Box 358835, Pittsburgh, PA 15251–5835. 1,225 1,825 2,750 3,950 6,075 7,275 475 925 1,150 1,950 2,975 4,575 5,475 400 600 800 1,200 2,000 E:\FR\FM\16AUR1.SGM 16AUR1 45936 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations Fee amount 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 ........................................................................................................ 3,000 3,800 475 725 1,200 1,425 2,375 3,800 4,750 400 575 1,150 1,600 2,475 3,900 6,350 8,075 725 1,250 2,300 3,000 4,400 7,025 9,125 575 64,300 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 ........................................................................................................ 19,450 10,800 6,300 1,750 1,750 2. Construction Permits ................................................................................................... Low Power TV, Class A TV, TV/FM Translator, & TV/FM Booster (47 CFR part 74) .......... 550 345 Broadcast Auxiliary ................................................................................................................. 10 FCC, TV Branch, P.O. Box 358835, Pittsburgh, PA 15251–5835. 46,350 31,075 20,000 5,125 5,125 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 .................................................................................................................. 4. Section 1.1154 is revised to read as follows: I 19,650 1,100 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 VerDate Aug<31>2005 18:00 Aug 15, 2007 Jkt 211001 FCC, UHF Commercial, P.O. Box 358835, Pittsburgh, PA 15251– 5835. FCC Satellite TV, P.O. Box 358835, Pittsburgh, PA 15251–5835. FCC, Low Power, P.O. Box 358835, Pittsburgh, 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 mstockstill on PROD1PC66 with RULES Address Address $40.00 FCC, P.O. Box 358994, Pittsburgh, PA 15251–5994. .00266 FCC, Carriers, P.O. Box 358835, Pittsburgh, PA 15251–5835. § 1.1155 Schedule of regulatory fees and filing locations for cable television services. PO 00000 Frm 00058 Fmt 4700 Sfmt 4700 E:\FR\FM\16AUR1.SGM 16AUR1 Federal Register / Vol. 72, No. 158 / Thursday, August 16, 2007 / Rules and Regulations Fee amount 1. Cable Television Relay Service ................................................ 2. Cable TV System (per subscriber) ........................................... 6. Section 1.1156 is revised to read as follows: I $185 .75 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 ............................................. $795 2. International Public Fixed .................................................. 1,875 Space Stations (Geostationary Orbit) ........................................... 109,200 Space Stations (Non-Geostationary Orbit) ................................... 116,475 Earth Stations: Transmit/Receive & Transmit Only (per authorization or registration). Carriers: International Bearer Circuits (per active 64KB circuit or equivalent). Note: The following statements will not appear in the Code of Federal Regulations. Statement of Commissioner Michael J. Copps, Approving in Part, Concurring in Part Re: Assessment and Collection of Regulatory Fees for Fiscal Year 2007, Report and Order and Further Notice of Proposed Rulemaking in MD Docket 07– 81 I concur in today’s item to emphasize my long-held and oft-repeated belief that the Commission should consider opening a formal rulemaking to address the adjustment of regulatory fees pursuant to section 9(b)(3) of the Act. In a rapidly-evolving communications marketplace, we need to look for ways to ensure that our regulatory fee methodologies continue to reflect the industries we regulate. In the absence of a separate rulemaking, I would have preferred to address the submarine cable issue in the Further Notice adopted herein. I hope that we act on the pending petition for rulemaking quickly. mstockstill on PROD1PC66 with RULES Concurring Statement of Commissioner Jonathan Adelstein Re: Assessment and Collection of Regulatory Fees for Fiscal Year 2007, Report and Order and Further Notice of Proposed Rulemaking, MD Docket No. 07–81 (Aug. 2, 2007) As in years past, I must concur to our Regulatory Fee Order because I remain troubled with the Commission’s inability and reluctance to consider changes that occur from time to time in VerDate Aug<31>2005 16:47 Aug 15, 2007 Jkt 211001 45937 Address FCC, International, P.O. Box 358835, Pittsburgh, PA 5835. FCC, International, P.O. Box 358835, Pittsburgh, PA 5835. FCC, Space Stations, P.O. Box 358835, Pittsburgh, PA 5835. FCC, Space Stations, P.O. Box 358835, Pittsburgh, PA 5835. 15251– 15251– FCC, Earth Station, P.O. Box 358835, Pittsburgh, PA 15251– 5835. 1.05 FCC, International, P.O. Box 358835, Pittsburgh, PA 15251– 5835. [FR Doc. E7–15607 Filed 8–15–07; 8:45 am] BILLING CODE 6712–01–P FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 64 [CG Docket No. 02–386; FCC 06–134] Rules and Regulations Implementing Minimum Customer Account Record Exchange Obligations on All Local and Interexchange Carriers Federal Communications Commission. ACTION: Final rule; announcement of effective date. AGENCY: SUMMARY: In this document, the Commission announces that the Office Frm 00059 15251– 185 the costs of regulatory fees for individual services. It is particularly disappointing that the Commission misses an opportunity to address in this Further Notice the regulatory fees paid by submarine cable operators, who have argued that the current fee structure results in certain operators paying fees that can approach the wholesale prices they receive from their consumers. Given that these operators have pending a petition for rulemaking before the Commission, it is high time for the Commission to seek comment on these issues and is regrettable that we do not do so here. I encourage the Commission to continue to improve its regulatory fee assessment processes so that in the future we are more able to make adjustments as appropriate. PO 00000 15251– Fmt 4700 Sfmt 4700 of Management and Budget (OMB) has approved, for a period of three years, the revised information collection(s) associated with the Commission’s 2006 Order on Reconsideration concerning Rules and Regulations Implementing Minimum Customer Account Record Exchange Obligations on All Local and Interexchange Carriers, CG Docket No. 02–386, FCC 06–134. This notice is consistent with the Order on Reconsideration, which stated that the Commission would publish a document in the Federal Register announcing the effective date of the revised rules. DATES: The rules published at 71 FR 74819, December 13, 2006, are effective August 16, 2007. FOR FURTHER INFORMATION CONTACT: David Marks, Consumer Policy Division, Consumer & Governmental Affairs Bureau at (202) 418–0347. SUPPLEMENTARY INFORMATION: This document announces that, on June 25, 2007, OMB approved, for a period of three years, the revised information collection requirements contained in 47 CFR 64.4002, published at 71 FR 74819, December 13, 2006. The OMB Control Number is 3060–1084. The Commission publishes this notice of the effective date of the rules. If you have any comments on the burden estimates listed below, or how the Commission can improve the collections and reduce any burdens caused thereby, please write to Cathy Williams, Federal Communications Commission, Room 1– C823, 445 12th Street, SW., Washington, DC 20554. Please include the OMB Control Number, 3060–1084, in your E:\FR\FM\16AUR1.SGM 16AUR1

Agencies

[Federal Register Volume 72, Number 158 (Thursday, August 16, 2007)]
[Rules and Regulations]
[Pages 45908-45937]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15607]


=======================================================================
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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 07-81; FCC 07-140]


Assessment and Collection of Regulatory Fees for Fiscal Year 2007

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, we amend our Schedule of Regulatory Fees to 
collect $290,295,160 in regulatory fees for Fiscal Year (FY) 2007, 
pursuant to section 9 of the Communications Act of 1934, as amended 
(the Act). These fees are mandated by Congress and are collected to 
recover the regulatory costs associated with the Commission's 
enforcement, policy and rulemaking, user information, and international 
activities.

DATES: Effective September 17, 2007, except that changes to the 
Schedule of Regulatory Fees made pursuant to section 9(b)(3) of the 
Communications Act, and incorporating regulatory fee payment 
obligations for interconnected VoIP service providers, shall become 
effective November 15, 2007, which is 90 days from date of notification 
to Congress.

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: August 2, 2007.
    Released: August 6, 2007.
    By the Commission: Commissioner Copps approving in part, concurring 
in part and issuing a statement; Commissioner Adelstein concurring and 
issuing a statement.

Table of Contents

                          Heading                             Paragraph
                                                                  number
I. Introduction............................................            1
II. Report and Order.......................................            4
    A. FY 2007 Regulatory Fee Assessment Methodology.......            4
        1. Development of FY 2007 Regulatory Fees..........            5
            a. Calculation of Revenue and Fee Requirements.            5
            b. Additional Adjustments to Payment Units.....            6
        2. Commercial Mobile Radio Service Messaging                   8
         Service...........................................
        3. International Bearer Circuits...................           10
        4. Interconnected Voice over Internet Protocol                11
         Service Providers.................................
        5. Private Land Mobile Radio Service...............           21
    B. Administrative and Operational Issues...............           24
        1. Use of Fee Filer................................           25
        2. Proposals for Notification and Collection of               28
         Regulatory Fees...................................
            a. Interstate Telecommunications Service                  31
             Providers.....................................
            b. Satellite Space Station Licensees...........           33
            c. Media Services Licensees....................           35
            d. Commercial Mobile Radio Service Cellular and           37
             Mobile Services Assessments...................
            e. Cable Television Subscribers................           43
III. Procedural Matters....................................           46
    A. Payment of Regulatory Fees..........................           46
        1. De Minimis Fee Payment Liability................           46
        2. Standard Fee Calculations and Payment Dates.....           47
    B. Enforcement.........................................           48
    C. Final Paperwork Reduction Act of 1995 Analysis......           50
    D. Congressional Review Act Analysis...................           51
IV. Ordering Clauses.......................................           52
Attachments
Attachment A--Final Regulatory Flexibility Analysis
Attachment B--Sources of Payment Unit Estimates for FY 2007
Attachment C--Calculation of Revenue Requirements and Pro-
 Rata Fees

[[Page 45909]]

 
Attachment D--FY 2007 Schedule of Regulatory Fees
Attachment E--Factors, Measurements, and Calculations that
 Determine Station Contours and Population Coverages
Attachment F--FY 2006 Schedule of Regulatory Fees
Attachment G--List of Commenters
Attachment H--Rule Changes
 

I. Introduction

    1. In this Report and Order and Further Notice of Proposed 
Rulemaking, we conclude a proceeding to collect $290,295,160 in 
regulatory fees for Fiscal Year (``FY'') 2007, pursuant to section 9 of 
the Communications Act of 1934, as amended (the ``Act''). Section 9 
regulatory fees are mandated by Congress and are collected to recover 
the regulatory costs associated with the Commission's enforcement, 
policy and rulemaking, user information, and international 
activities.\1\ The Further Notice of Proposed Rulemaking (``FNPRM'') 
seeks comment on the appropriate fee structure for Broadband Radio 
Service (``BRS'').
---------------------------------------------------------------------------

    \1\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    2. We retain the established methods, policies, and procedures for 
collecting section 9 regulatory fees adopted by the Commission in prior 
years. We have found that the assessment methodology adopted in prior 
regulatory fee cycles has provided a satisfactory means for collecting 
the Commission's annual appropriations. In addition to the assessment 
methodology, we retain and enhance our administrative measures used for 
notification and assessment of regulatory fees as in previous years, 
such as generating bills and pre-completed assessment notifications for 
certain regulatees. Beginning this year, we expand our billing efforts 
to include licensees of earth stations and cable television relay 
service (``CARS'') stations. We will also apply regulatory fee 
obligations to interconnected Voice over Internet Protocol (``VoIP'') 
providers. Finally, we wish to take this opportunity to strongly 
encourage regulatees to electronically file their FY 2007 regulatory 
fee payments via Fee Filer.
    3. The Commission is obligated to collect $290,295,160 in 
regulatory fees during FY 2007 to fund the Commission's operations. 
Consistent with our established practice, we intend to collect these 
regulatory fees during a filing window in September 2007 in order to 
collect the required amount by the end of our fiscal year.

II. Report and Order

A. FY 2007 Regulatory Fee Assessment Methodology

    4. On April 18, 2007, we released a Notice of Proposed Rulemaking 
seeking comment on regulatory fee issues.\2\ As noted in the FY 2007 
NPRM, the section 9 regulatory fee proceeding is an annual rulemaking 
process intended to ensure the Commission collects the fee amount 
required by Congress each year. In the FY 2007 NPRM, we proposed to 
largely retain the section 9 regulatory fee methodology used in the 
prior fiscal year. We received ten comments and six reply comments.\3\ 
We address the issues raised in our FY 2007 NPRM below.
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    \2\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2007, Notice of Proposed Rulemaking, 22 FCC Rcd 7975 (2007) 
(``FY 2007 NPRM'').
    \3\ See Attachment G for the list of commenters and abbreviated 
names.
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1. Development of FY 2007 Regulatory Fees
a. Calculation of Revenue and Fee Requirements
    5. In our FY 2007 regulatory fee assessment, we use essentially the 
same section 9 regulatory fee assessment methodology adopted for FY 
2006. Each fiscal year, the Commission proportionally allocates the 
total amount that must be collected via section 9 regulatory fees. The 
results of our FY 2007 regulatory fee assessment methodology (including 
a comparison to the prior year's results) are contained in Attachment 
C. For FY 2007, we will use the FY 2006 congressionally mandated amount 
as the basis for calculating the unit fees for each fee category. To 
collect the $290,295,160 required by law, we adjust the FY 2006 amount 
downward by approximately 2.84 percent.\4\ Consistent with past 
practice, we then divide the FY 2007 amount by the number of payment 
units in each fee category to determine the unit fee.\5\ As in prior 
years, for cases involving small fees (e.g., licenses that are renewed 
over a multiyear term), we divide the resulting unit fee by the term of 
the license, and then round these unit fees consistent with the 
requirements of section 9(b)(2).
---------------------------------------------------------------------------

    \4\ The percentage decrease of approximately 2.84 percent is 
based on the total amount of regulatory fees that was mandated by 
Congress to be collected in FY 2006, which included an amount of 
$288,771,000 in regulatory fees pursuant to section 9 of the Act and 
an additional $10,000,000 as required by section 3013 of the Deficit 
Reduction Act (Pub. L. 109-171). Together, the total amount of 
regulatory fees mandated by Congress to be collected in FY 2006 was 
$298,771,000. Also, the decrease in regulatory fee payments of 
approximately 2.84 percent in FY 2007 is reflected in the revenue 
that is expected to be collected from each service category. Because 
this expected revenue is adjusted for each individual service 
category each year by the number of estimated payment units in a 
service category, and then adjusted for rounding, the actual fee 
will likely differ by an amount more or less than 2.84 percent. For 
example, in industries where the number of payment units is 
declining, the per-unit regulatory fee amount for FY 2007 may 
actually be more than the amount for FY 2006.
    \5\ In many instances, the regulatory fee amount is a flat fee 
per licensee or regulatee. However, in some instances the fee amount 
represents a per-unit fee (such as for International Bearer 
Circuits), a per-unit subscriber fee (such as for Cable, Commercial 
Mobile Radio Service (``CMRS'') Cellular/Mobile and CMRS Messaging), 
or a fee factor per revenue dollar (Interstate Telecommunications 
Service Provider fee). The payment unit is the measure upon which 
the fee is based, such as a licensee, regulatee, subscriber fee, 
etc.
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b. Additional Adjustments to Payment Units
    6. In calculating the FY 2007 regulatory fees listed in Attachment 
D, we further adjusted the FY 2006 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.\6\ Where appropriate, 
we adjusted and rounded our final estimates to take into consideration 
events that may impact the number of units for which regulatees submit 
payment, such as waivers and exemptions that may be filed in FY 2007, 
and fluctuations in the number of licensees or station operators due to 
economic, technical, or other reasons. Therefore, when we state that 
our estimated FY 2007 payment units are based on FY 2006 actual payment 
units, the number may have been rounded or

[[Page 45910]]

adjusted slightly to account for these variables.
---------------------------------------------------------------------------

    \6\ The databases we consulted include, but are not limited to, 
the Commission's Universal Licensing System (ULS), International 
Bureau Filing System (``IBFS''), Consolidated Database System 
(``CDBS'') and Cable Operations and Licensing System (``COALS''). We 
also consulted industry sources including, but not limited to, 
Television & Cable Factbook by Warren Publishing, Inc. and the 
Broadcasting and Cable Yearbook by Reed Elsevier, Inc., as well as 
reports generated within the Commission such as the Wireline 
Competition Bureau's Trends in Telephone Service and the Wireless 
Telecommunications Bureau's Numbering Resource Utilization Forecast 
and Annual CMRS Competition Report. For additional information on 
source material, see Attachment B.
---------------------------------------------------------------------------

    7. We consider additional factors in determining regulatory fees 
for AM and FM radio stations. These factors are facility attributes and 
the population served by the radio station. The calculation of the 
population served is determined by coupling current U.S. Census Bureau 
data with technical and engineering data, as detailed in Attachment E. 
Consequently, the population served, as well as the class and type of 
service (AM or FM), determines the regulatory fee amount to be paid.\7\
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    \7\ In addition, beginning in FY 2005, we established a 
procedure by which we set regulatory fees for AM and FM radio and 
VHF and UHF television Construction Permits each year at an amount 
no higher than the lowest regulatory fee in that respective service 
category. For example, the regulatory fee for a Construction Permit 
for an AM radio station will never be more than the regulatory fee 
for an AM Class C radio station serving a population of less than 
25,000.
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2. Commercial Mobile Radio Service Messaging Service
    8. In the FY 2007 NPRM, we proposed to continue our policy of 
maintaining the CMRS Messaging Service regulatory fee at the rate that 
was established in FY 2002 (i.e., $0.08 per subscriber), noting that 
the subscriber base in this industry has declined 79 percent from 40.8 
million to 8.3 million from FY 1997 to FY 2006.\8\ The only commenters 
addressing this issue, AAPC and USA Mobility, state that maintaining 
the fee amount at $0.08 per subscriber is the minimum action to take 
and that the Commission should consider reducing the fee amount.\9\
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    \8\ See FY 2007 NPRM, 22 FCC Rcd at 7978, para 7.
    \9\ AAPC Comments at 1; USA Mobility Comments at 3. No 
commenters opposed our proposal.
---------------------------------------------------------------------------

    9. We continue to believe that maintaining the CMRS Messaging 
regulatory fee at the rate established in FY 2002, rather than allowing 
it to increase, is the appropriate level of relief to be afforded to 
the messaging industry. We are cognizant of the financial hardship that 
could be caused by increasing the fee (shrinking profit margins, 
additional loss of subscribers, reduced revenue, etc.) for this service 
category. Therefore, we adopt our proposal to maintain the CMRS 
Messaging Service regulatory fee for FY 2007 at $0.08 per subscriber.
3. International Bearer Circuits
    10. In our FY 2006 NPRM,\10\ we noted that VSNL Telecommunications 
(US) Inc. (``VSNL'') had filed a Petition for Rulemaking urging the 
Commission to revise its regulatory fee methodology for bearer 
circuits; \11\ and that we issued a Public Notice designating the 
proceeding as RM-11312 and requesting comment on the Petition.\12\ We 
stated in our FY 2006 Report and Order that the issues presented in the 
Petition warrant consideration separately from the Commission's annual 
regulatory fee proceeding.\13\ In our FY 2007 NPRM, we received a set 
of joint comments filed by seven submarine cable landing licensees 
urging the Commission to take similar action.\14\ We reiterate that the 
issues presented in the Petition warrant consideration separately from 
the Commission's annual regulatory fee proceeding.\15\
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    \10\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, MD Docket No. 06-68, Notice of Proposed Rulemaking, 21 
FCC Rcd 3708, 3718, n.20 (2006) (``FY 2006 NPRM'').
    \11\ See Petition for Rulemaking of VSNL Telecommunications (US) 
Inc., RM-11312 (filed Feb. 6, 2006) (``VSNL Petition'').
    \12\ See Consumer and Governmental Affairs Bureau, Reference 
Information Center, Public Notice, Report No. 2759 (rel. Feb. 15, 
2006).
    \13\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092, 
8098-99, para 18 (2006) (``FY 2006 Report and Order'').
    \14\ See Joint Comments at 1.
    \15\ We incorporate the instant comments of the seven cable 
landing licensees into the VSNL Petition proceeding, RM-11312.
---------------------------------------------------------------------------

4. Interconnected Voice Over Internet Protocol Service Providers
    11. In the FY 2007 NPRM, we observed that providers of 
interconnected VoIP \16\ services are now required to contribute to the 
Universal Service Fund (``USF'') \17\ and we tentatively concluded that 
the interconnected VoIP providers should also pay regulatory fees.\18\ 
Our tentative conclusion was based on the mandate in section 9 of the 
Act that the Commission ``assess and collect regulatory fees to recover 
the costs'' of regulatory activities \19\ as well as our analysis in 
the 2006 Interim Contribution Methodology Order. In this Report and 
Order we adopt our tentative conclusion in the FY 2007 NPRM and require 
interconnected VoIP providers to pay FY 2007 regulatory fees based on 
revenues reported on the FCC Form 499-A at the same rate as interstate 
telecommunications service providers (``ITSPs'').\20\
---------------------------------------------------------------------------

    \16\ See 47 CFR 9.3 for the definition of interconnected VoIP 
service.
    \17\ See Universal Service Contribution Methodology, Report and 
Order and Notice of Proposed Rulemaking, WC Docket No. 06-122, 21 
FCC Rcd 7518, 7536-543, paras. 34-49 (2006) (``2006 Interim 
Contribution Methodology Order'') (finding that interconnected VoIP 
service providers are ``providers of interstate telecommunications'' 
under section 254(d) and asserting the Commission's permissive 
authority to require interconnected VoIP service providers to 
contribute to the preservation and advancement of universal 
service), aff'd in relevant part, Vonage Holdings Corp., v. FCC, No. 
06-1276 (D.C. Cir. 2007) (``Vonage'').
    \18\ FY 2007 NPRM, 22 FCC Rcd at 7979, para. 10.
    \19\ 47 U.S.C. 159(a)(1).
    \20\ Interconnected VoIP providers will pay FY 2007 regulatory 
fees during a separate filing window (to be determined later), most 
likely in 2008. For FY 2008, interconnected VoIP providers will be 
required to pay regulatory fees in the same filing window as other 
entities.
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a. Jurisdiction
    12. By way of recent background, in the 2006 Interim Contribution 
Methodology Order, the Commission, among other things, established 
universal service contribution obligations for providers of 
interconnected VoIP service based on its permissive authority under 
section 254(d) of the Act and its ancillary jurisdiction under Title I 
of the Act.\21\ The Commission noted that significant growth in the 
number of VoIP subscribers in recent years is expected to continue.\22\ 
In addition, the Commission observed that the USF revenue base had been 
diminishing and the contribution factor used to determine contributor 
payments into the fund has risen considerably as a result.\23\ 
Interconnected VoIP service is increasingly used to replace traditional 
telephone service and, as the interconnected VoIP service industry 
continues to grow and to attract customers who previously relied on 
traditional voice service, it was inappropriate to exclude 
interconnected VoIP service from universal service contribution 
requirements.\24\ In its Vonage decision, the DC Circuit upheld the 
Commission's decision to impose USF fees on interconnected VoIP 
providers.\25\ Prior to the 2006 Interim Contribution Methodology 
Order, the Commission asserted its ancillary jurisdiction under Title I 
of the Act to require providers of interconnected VoIP services to 
supply 911 emergency calling capabilities to their customers.\26\

[[Page 45911]]

More recently, the Commission also extended the section 222 customer 
proprietary network information (``CPNI'') obligations, disability 
access obligations, and telecommunications relay services (``TRS'') 
requirements to providers of interconnected VoIP services using its 
Title I authority.\27\
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    \21\ 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 
7538-543, paras. 38-49.
    \22\ Id., 21 FCC Rcd at 7528-29, para. 19.
    \23\ Id.
    \24\ Id., 21 FCC Rcd at 7541, para. 44.
    \25\ Vonage at 15. Because it found that the Commission has 
authority under section 254(d) of the Act to impose USF contribution 
obligations on interconnected VoIP providers, the court did not 
decide whether the Commission also could have imposed this 
obligation pursuant to its Title I ancillary jurisdiction. Id. at 
15-16.
    \26\ See E911 Requirements for IP-Enabled Service Providers, 
First Report and Order and Notice of Proposed Rulemaking, 20 FCC Rcd 
10245 (2005) (``VoIP 911 Order''); 47 CFR Part 9. The Commission 
also concluded that providers of interconnected VoIP services are 
subject to the Communications Assistance for Law Enforcement Act 
(``CALEA''). See Communications Assistance for Law Enforcement Act 
and Broadband Access and Services, ET Docket No. 04-295, RM-10865, 
First Report and Order and Further Notice of Proposed Rulemaking, 20 
FCC Rcd 14989, 14991-92, para. 8 (2002) (``CALEA First Report and 
Order''), aff'd, American Council on Education v. FCC, 451 F.3d 226 
(D.C. Cir. 2006).
    \27\ Implementation of the Telecommunications Act of 1996, 
Telecommunications Carriers' Use of Customer Proprietary Network 
Information and Other Customer Information, IP-Enabled Services, CC 
Docket No. 96-115, WC Docket No. 04-36, Report and Order and Further 
Notice of Proposed Rulemaking, 22 FCC Rcd 6927 (2007) (``EPIC CPNI 
Order''); IP-Enabled Services, Implementation of Sections 255 and 
251(a)(2) of the Communications Act of 1934, as Enacted by the 
Telecommunications Act of 1996: Access to Telecommunications 
Service, Telecommunications Equipment and Customer Premises 
Equipment by Persons with Disabilities, WC Docket No. 04-36, WT 
Docket No. 96-198, Report and Order, FCC 07-110 (rel. June 15, 2007) 
(``VoIP TRS Order'').
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    13. Consistent with our previous orders, we conclude that Title I 
of the Act gives us direct authority to impose regulatory fees on 
providers of interconnected VoIP services. In particular, we have 
previously found, based on sections 1 and 2(a) of the Act, coupled with 
the definitions set forth in section 3(33) (``radio communication'') 
and section 3(52) (``wire communication''), that interconnected VoIP 
services are covered by the Commission's general jurisdictional 
grant.\28\ Section 1 of the Act states that the Commission is created 
``[f]or the purpose of regulating interstate and foreign commerce in 
communication by wire and radio so as to make available, so far as 
possible, to all the people of the United States * * * a rapid, 
efficient, Nation-wide, and world-wide wire and radio communication 
service with adequate facilities at reasonable charges,'' and that the 
agency ``shall execute and enforce the provisions of th[e] Act.'' \29\ 
Section 2(a), in turn, confers on the Commission regulatory authority 
over all interstate communication by wire or radio.\30\ As we have 
previously observed, interconnected VoIP services are covered by the 
statutory definitions of ``wire communication'' and/or ``radio 
communication'' because they involve ``transmission of [voice] by aid 
of wire, cable, or other like connection * * *'' and/or ``transmission 
by radio * * *'' of voice.\31\ Therefore, these services come within 
the scope of the Commission's subject matter jurisdiction under section 
2(a) of the Act. Accordingly, section 9 of the Act gives the Commission 
direct authority to impose regulatory fees on interconnected VoIP 
providers. Specifically, section 9 states that the Commission ``shall 
assess and collect regulatory fees to recover the costs of the 
following regulatory activities of the Commission: Enforcement 
activities, policy and rulemaking activities, user information 
services, and international activities.'' \32\ In light of the many and 
increasing resources the Commission now dedicates to VoIP, the 
Commission should recover costs from interconnected VoIP providers.\33\
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    \28\ See, e.g., VoIP 911 Order, 20 FCC Rcd at 10261-62, para. 
28.
    \29\ 47 U.S.C. 151.
    \30\ See 47 U.S.C. 152(a) (stating that the provisions of the 
Act ``shall apply to all interstate and foreign communication by 
wire or radio and all interstate and foreign transmission of energy 
by radio, which originates and/or is received within the United 
States, and to all persons engaged within the United States in such 
communication or such transmission of energy by radio * * *'').
    \31\ VoIP 911 Order, 20 FCC Rcd at 10261-62, para. 28.
    \32\ 47 U.S.C. 159(a)(1).
    \33\ See, e.g., nn.26-27 supra. Although we find that section 9 
by its terms allows us to impose regulatory fees on providers of 
interconnected VoIP services, we also find, consistent with our 
prior orders, that we have ancillary authority under Title I to 
impose these fees. See, e.g., VoIP 911 Order, 20 FCC Rcd at 10261-
63, paras. 26-29. Interconnected VoIP providers fall within our 
Title I jurisdictional grant and the assessment of regulatory fees 
to fund Commission operations is critical to the effective 
performance of the Commission's responsibilities.
---------------------------------------------------------------------------

    14. We disagree with the VON Coalition's argument that we do not 
have jurisdiction to extend regulatory fees to interconnected VoIP 
providers because regulatory fees can only be assessed on entities 
subject to licensing or certification requirements.\34\ On the 
contrary, section 9 gives the Commission broad authority to impose 
regulatory fees. Section 9 does not limit the regulatory fee 
requirement to licensees. Moreover, the Commission has not, in the 
annual regulatory fee orders or otherwise, specifically limited the 
implementation of section 9 to ``licensees.'' To construe section 9 as 
narrowly as the VON Coalition proposes would prohibit the Commission 
from recovering costs from providers that impose costs on the 
Commission, simply because they were not licensees and would 
unreasonably lighten regulatory costs on certain industry segments at 
the cost of others.
---------------------------------------------------------------------------

    \34\ VON Coalition Comments at 6-7; WCA Comments at 3-5 & Reply 
Comments at 2-3.
---------------------------------------------------------------------------

b. Basis and Rate
    15. Having concluded that the Commission has authority to assess 
regulatory fees on interconnected VoIP providers, we must determine how 
to assess those fees. Specifically, we must determine whether to base 
fees on revenues or subscribers, or some other basis, and at what rate. 
We conclude that interconnected VoIP providers should pay regulatory 
fees based on their interstate and international revenue at the same 
rate as ITSPs.
    16. In the FY 2007 NPRM, we sought comment on whether 
interconnected VoIP providers should be assessed regulatory fees based 
on revenues, which would be consistent with the regulatory fee 
methodology used for interstate telecommunications service providers, 
or if we should use a numbers-based approach, which would be consistent 
with the methodology used for CMRS.\35\ Most commenters addressing this 
issue favor a numbers-based or subscriber-based approach, as opposed to 
a revenue-based approach.\36\ We instead adopt a revenue-based approach 
as adopted in the 2006 Interim Contribution Methodology Order for USF 
contributions. The Commission's conclusion that interconnected VoIP 
service is more closely analogous to wireline toll service than to CMRS 
guides us here.\37\ As a result, we will use revenue as the basis for 
imposing regulatory fees on interconnected VoIP providers instead of a 
subscriber-based approach, which is the basis for wireless 
providers.\38\
---------------------------------------------------------------------------

    \35\ FY 2007 NPRM, 22 FCC Rcd at 7979, para. 10.
    \36\ See, e.g., Nuvio Comments at 4; IUB Comments at 2-4; 
Comcast Comments at 1-2; WCA Comments at 3; NCTA Reply Comments at 
2; VON Coalition Reply Comments at 6. Nuvio and VON Coalition 
suggest that if the Commission adopts a numbers-based assessment, 
the assessment should be on active numbers and not the inventory of 
numbers. Nuvio Comments at 4; VON Coalition Reply Comments at n. 16.
    \37\ The D.C. Circuit rejected Vonage's challenge to that 
conclusion because Vonage was unable to show why usage patterns for 
VoIP are more like those for wireless than for wireline toll. Vonage 
at 18.
    \38\ See NTCA Comments at 2.
---------------------------------------------------------------------------

    17. Commenters contend that broadband providers often offer a 
bundle of services to consumers and it may be difficult to separate the 
telecommunications service revenues from the other revenues.\39\ 
Consistent with our decision in the 2006 Interim Contribution 
Methodology Order, however, interconnected VoIP providers may avoid 
separating revenue types by using a safe-harbor level of 64.9 percent 
interstate or international revenues for purposes of calculating 
regulatory fee

[[Page 45912]]

obligations.\40\ Interconnected VoIP providers may contribute based on 
a lesser percentage if they provide supporting traffic studies.\41\
---------------------------------------------------------------------------

    \39\ Nuvio Comments at 4; Iowa Utilities Board Comments at 2-4; 
Comcast Comments at 1-2; WCA Comments at 3; NCTA Reply Comments at 
2. Nuvio suggests that if the Commission adopts a numbers-based 
assessment, the assessment should be on active numbers and not the 
inventory of numbers. Nuvio Comments at 4.
    \40\ See 2006 Interim Contribution Methodology Order, 21 FCC Rcd 
at 7544-45, para. 53; Vonage, slip op. at 7, 17-19.
    \41\ Consistent with the Vonage decision, interconnected VoIP 
providers need not at this time obtain pre-approval of their traffic 
studies. Rather, they must submit any studies upon which they rely 
no later than the deadline for submitting the FCC Form 499-Q for the 
same time period. Vonage, slip op. at 19-20; 2006 Interim 
Contribution Methodology Order, 21 FCC Rcd at 7535, para. 32.
---------------------------------------------------------------------------

    18. We also conclude that interconnected VoIP providers will pay 
regulatory fees on their interstate and international revenues at the 
same rate as ITSPs. As we stated in the 2006 Interim Contribution 
Methodology Order, interconnected VoIP providers offer a service that 
is almost indistinguishable, from the consumers' point of view, from 
the service offered by interstate telecommunications service 
providers.\42\ Further, the explosive growth of the VoIP industry in 
recent years has resulted in recent Commission actions addressing the 
service.\43\ The growth of the VoIP industry and the extent to which 
VoIP service is used as a substitute for analog voice service have 
necessitated a number of Commission rulemaking proceedings pertaining 
to interconnected VoIP services.
---------------------------------------------------------------------------

    \42\ The Commission has determined that interconnected VoIP 
service is increasingly used to replace analog voice service. See 
2006 Interim Contribution Methodology Order, 21 FCC Rcd at 7542, 
para. 48.
    \43\ See, e.g., 2006 Interim Contribution Methodology Order, 21 
FCC Rcd at 7541-43, paras. 46-49; VoIP 911 Order, 20 FCC Rcd at 
10261-266, paras. 26-35; EPIC CPNI Order at para. 55.
---------------------------------------------------------------------------

    19. We recognize that the costs and benefits associated with our 
regulation of interconnected VoIP providers are not identical as those 
associated with regulating interstate telecommunications service and 
CMRS.\44\ For example, at this time interconnected VoIP providers are 
not subject to the Commission's enforcement authority in most instances 
and only recently have the Commission's rulemaking activities involved 
interconnected VoIP providers.\45\ The Commission does not maintain a 
database system pertaining to interconnected VoIP providers similar to 
the registration and filing systems for CMRS and wireline carriers.\46\ 
In addition, interconnected VoIP providers do not receive certain 
benefits, such as universal service support payments and 
interconnection rights, as Title II carriers do.\47\ Section 9 is 
clear, however, that regulatory fee assessments are based on the burden 
imposed on the Commission, not benefits realized by regulatees.\48\ 
Interconnected VoIP providers create costs at the Commission by 
participating in rulemaking proceedings, waiver petitions, and other 
matters in the wake of our assertion of ancillary jurisdiction under 
Title I of the Act to require providers of interconnected VoIP services 
to contribute to the universal service fund, supply 911 emergency 
calling capabilities to their customers, comply with section 222 CPNI 
obligations, and comply with our disability access and TRS 
requirements.\49\ The provision of interconnected VoIP service is a 
growing industry \50\ and we can reasonably assume that this regulatory 
burden on the Commission will continue to increase.\51\ Thus, this 
category of service providers should share in the costs of the 
Commission's regulatory activities in the same manner as ITSPs. Section 
9 does not require the Commission to engage in a company-by-company 
assessment of relative regulatory costs. In any given year, companies 
grouped in the ITSP category, or other regulatory fee categories, might 
be the subject of more regulation than others, e.g., merger 
proceedings. As a result, our responsibility here is to identify the 
category of regulatory fee payees with which interconnected VoIP 
providers most closely relate. On this note, we also observe that 
interconnected VoIP providers are able to offer their services because 
they interconnect with the PSTN, and they thereby benefit from our 
substantial regulation of telecommunications service providers.\52\
---------------------------------------------------------------------------

    \44\ See WCA Comments at 6; VON Coalition Comments at 15-17 & 
n.42.
    \45\ VON Coalition Comments at 16.
    \46\ Id.
    \47\ VON Coalition Comments at 17; WCA Comments at 6. We note 
that interconnected VoIP service is currently an eligible service 
for purposes of the schools and libraries program. In addition, the 
Commission recently clarified that wholesale telecommunications 
carriers have interconnection rights under sections 251(a) and (b) 
of the Act, including when providing wholesale services to 
interconnected VoIP providers. See Time Warner Cable Request for 
Declaratory Ruling that Competitive Local Exchange Carriers May 
Obtain Interconnection Under Section 251 of the Communications Act 
of 1934, as Amended, to Provide Wholesale Telecommunications 
Services to VoIP Providers, WC Docket No. 06-55, Memorandum Opinion 
and Order, DA 07-709 (WCB rel. Mar. 1, 2007).
    \48\ Commenters have not attempted to quantify the relative 
burden imposed on the Commission by interconnected VoIP providers.
    \49\ 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 
7541-43, paras. 46-49; VoIP 911 Order, 20 FCC Rcd at 10261-266, 
paras. 26-35; EPIC CPNI Order at para. 55; VoIP TRS Order at para. 
16.
    \50\ 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 
7528-29, para. 19.
    \51\ We recognize that including interconnected VoIP providers 
in our regulatory fee schedule at this time will have a minimal 
impact on the fees assessed other carriers, but this may change as 
the industry grows and their share of regulatory fees increases.
    \52\ In addition, those companies that currently offer their 
customers both Title II services and interconnected VoIP services 
may choose to shift customers from the traditional landline service 
to the interconnected VoIP service in order to reduce the regulatory 
fee burden.
---------------------------------------------------------------------------

    20. Because we are adding interconnected VoIP services to our 
regulatory fee assessments, we conclude that this is a permitted 
amendment under section 9(b)(3) of the Act. Section 9(b)(4)(B) of the 
Act in turn requires us to notify Congress 90 days before the change 
may take effect. We will provide Congress notification upon publication 
of this order, and will release a public notice once the amendment 
takes effect, if there is no Congressional objection.
5. Private Land Mobile Radio Service
    21. EWA argues that the fee for Private Land Mobile Radio Service 
(``PLMRS'') exclusive use licenses has increased from $5 per year in 
2001 to $20 per year in 2006, and for PLMRS shared use licenses, the 
fee has increased from $5 to $10 during the same time period.\53\ EWA 
further contends that this increase in fee rates is not associated with 
a corresponding increase in the cost of regulating the PLMRS industry, 
and as a result, the Commission's FY 2007 proposed Part 90 PLMRS 
regulatory fee of $35 (PLMRS Exclusive Use) and $15 (PLMRS Shared Use) 
is unjustified.
---------------------------------------------------------------------------

    \53\ EWA Comments at 2-3.
---------------------------------------------------------------------------

    22. We disagree. In our FY 2004 Report and Order, the Commission 
stated that regulatory fees need not be precisely calibrated on a 
service-by-service basis to the actual costs of the Commission's 
regulatory activities for that service.\54\ The Commission stated that, 
``the initial Schedule of Regulatory Fees that Congress enacted in 
section 9(g) reflects a `costs adjusted for benefits' approach 
permitted under section 9.'' \55\ Procedurally, the Commission 
calculates regulatory fees by proportionally allocating the total 
amount that must be collected in section 9 regulatory fees (known as 
``Expected Revenue''), and dividing this allocated amount by the 
estimated number of units in its respective fee category. In the case 
of PLMRS (Shared Use and Exclusive Use), the resulting figure is also 
divided by 10, the length of the

[[Page 45913]]

term of a PLMRS license. Because PLMRS licenses have a ten-year term, 
and regulatory fees are not collected again from these licenses until 
after 10 years have passed, it is possible that in any given year, 
there may be fewer units that are either renewing their PLMRS licenses 
or applying for new ones. For example, between FY 2001 and FY 2006, the 
unit estimates for PLMRS Exclusive Use decreased from 5,500 units (FY 
2001) to 2,200 units (FY 2006), a 60 percent reduction, while PLMRS 
Shared Use unit estimates decreased from 58,000 units (FY 2001) to 
25,000 units (FY 2006), a 57 percent reduction.\56\ At the same time 
that PLMRS (Shared Use and Exclusive Use) unit estimates were 
decreasing by nearly 60 percent, our congressionally mandated 
regulatory fees collections amount increased from $200.1 million (FY 
2001) to $298.8 million (FY 2006), an increase of 49 percent. The 
combination of an increasing collections amount mandated by Congress 
combined with a decrease in the number of units resulted in a higher 
unit fee between FY 2001 and FY 2006 for PLMRS Shared Use and PLMRS 
Exclusive Use fee categories.
---------------------------------------------------------------------------

    \54\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2004, MD Docket No. 04-73, Report and Order, 19 FCC Rcd 11662, 
11665-67, paras. 6-12 (2004) (``FY 2004 Report and Order'').
    \55\ See FY 2004 Report and Order, 19 FCC Rcd at 11666, para. 8.
    \56\ Data derived from regulatory fee Report and Orders for 
fiscal years 2001-2006.
---------------------------------------------------------------------------

    23. We also note that the unit fee increase has been gradual over 
time. For example, between FY 2001 and FY 2006, the PLMRS Shared Use 
unit fee remained steady at $5 per year between FY 2001 and FY 2005, 
and increased only to $10 per year beginning in FY 2006. During the 
same time period, the PLMRS Exclusive Use unit fee remained at $5 per 
year in FY 2001 and FY 2002, increased to the level of $10 per year in 
FY 2003, FY 2004, and FY 2005, and then increased to $20 per year in FY 
2006. Because these fee increases are based primarily on a declining 
unit base and an increasing congressional mandate to collect more 
annual regulatory fees, common factors that contribute to unit fee 
changes each year, we decline to modify or reduce the PLMRS (Shared Use 
and Exclusive Use) unit fee as EWA suggests.

B. Administrative and Operational Issues

    24. In our FY 2007 NPRM, we sought comment on the administrative 
and operational processes used to collect the annual section 9 
regulatory fees. Although these issues do not affect the amount of 
regulatory fees parties are obligated to submit, the administrative and 
operational issues affect the process of submitting payment.
1. Use of Fee Filer
    25. We did not seek specific comment on the use of our online Fee 
Filer application in the FY 2007 NPRM. We take this opportunity, 
however, to strongly encourage regulatees to electronically file their 
FY 2007 regulatory fee payments via Fee Filer,\57\ rather than 
submitting payment with a completed hardcopy Form 159, Form 159-B, and/
or Form 159-W. The benefits of electronically filing via Fee Filer are 
expeditious payment submissions that are less expensive (no U.S. 
postage if paying online) and less prone to error. It also results in 
improved record keeping and payment reconciliation efforts, and reduces 
paperwork burdens on payers and Commission staff alike.
---------------------------------------------------------------------------

    \57\ Fee Filer can be accessed at http://www.fcc.gov/fees/
feefiler.html.
---------------------------------------------------------------------------

    26. Traditionally, we have received hardcopy Form 159-Cs 
(Continuation Sheets) from our regulatees needing to make voluminous 
payment transactions. Our ``voluminous payers'' will benefit even more 
so by using Fee Filer. Having expanded our pre-billing initiatives in 
FY 2007, some regulatees will receive more than one Form 159-B; and 
some will be obligated to pay for fees that were pre-billed and other 
fees that were not pre-billed. Fee Filer relieves regulatees of the 
need to mail several different pre-bills or to follow different filing 
instructions for different fees; and enables all fee obligations to be 
paid simply either online or by following pre-printed instructions on a 
Fee Filer-produced voucher.
    27. We note that Fee Filer accepts electronic credit card 
transactions of up to $99,999.99 and ACH payment transactions from a 
bank account of an unlimited dollar amount. Fee Filer also facilitates 
payment by check or wire transfer by producing a one-page Remittance 
Voucher Form 159-E which can be mailed to our lockbox bank.
2. Proposals for Notification and Collection of Regulatory Fees
    28. In our FY 2007 NPRM, we sought comment on the administrative 
processes that the Commission uses to notify regulatees and collect 
regulatory fees. We received no comment on these general processes. 
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. Consistent 
with our established practice, we will provide public notices, fact 
sheets and all other relevant material on our Web site at http://
www.fcc.gov/fees/regfees.html for the FY 2007 regulatory fee cycle. As 
a general practice, we will not send regulatory fee material to 
regulatees via surface mail. However, in the event that regulatees do 
not have access to the Internet, we will mail public notices and other 
relevant material upon request. Regulatees and the general public may 
request such information by contacting the FCC Financial Operations 
HelpDesk at (877) 480-3201, Option 4.
    29. As discussed above, we do not send public notices and fact 
sheets to regulatees en masse. However, we will continue to send 
specific regulatory fee pre-bills or assessment notifications via 
surface mail to the select fee categories discussed below.\58\ Pre-
bills are hardcopy billing statements that the Commission mails to 
certain regulatees. In prior years, the Commission only sent pre-bills 
to ITSPs and satellite space station licensees. The remaining 
regulatees did not receive pre-bills.
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    \58\ An assessment is a proposed statement of the amount of 
regulatory fees owed by an entity to the Commission (or proposed 
subscriber count to be ascribed for purposes of setting the entity's 
regulatory fee) but it is not entered into the Commission's 
accounting system as a current debt. A pre-bill is considered an 
account receivable in the Commission's accounting system. Pre-bills 
reflect the amount owed and have a payment due date of the last day 
of the regulatory fee payment window. Consequently, if a pre-bill is 
not paid by the due date, it becomes delinquent and is subject to 
our debt collection procedures. See also 47 CFR 1.1161(c), 
1.1164(f)(5), and 1.1910.
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    30. In our FY 2007 NPRM, we sought comment on expanding our section 
9 regulatory fee pre-billing initiatives to include our service 
categories for earth stations and CARS stations, beginning in FY 2007. 
We stated that we could accomplish pre-billing for these categories 
because they are comprised of relatively few payment units (relative to 
many other categories in our Schedule of Regulatory Fees), and because 
we maintain licensing databases for both categories.\59\ The ACA 
supports our proposal to pre-bill earth stations and CARS stations, 
noting that it can promote timely filings and payments, and further 
reduce administrative burdens and costs for small cable operators.\60\ 
We received no comments regarding our proposal. Effective this fiscal 
year, we will pre-bill our earth station and CARS station service 
categories.
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    \59\ See FY 2007 NPRM, 22 FCC Rcd at 7981, para. 19.
    \60\ ACA Comments at 4.
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a. Interstate Telecommunications Service Providers
    31. In FY 2001, we began mailing pre-completed FCC Form 159-W 
assessments to carriers in an effort to

[[Page 45914]]

assist them in paying their ITSP regulatory fee. The fee amount on FCC 
Form 159-W was calculated from the FCC Form 499-A worksheet. Beginning 
in FY 2004, we converted our usage of the FCC Form 159-W from an 
``assessment of amount due'' to a pre-bill. We have successfully used 
the Form 159-W as a pre-billing instrument in the fiscal years 
following, and we proposed to continue our ITSP pre-billing initiative 
in FY 2007 in our FY 2007 NPRM. We received no comment on this 
proposal, and will continue to mail pre-bills ITSPs in FY 2007.
    32. This fiscal year, we will round lines 14 (total subject 
revenues) and 16 (total regulatory fee owed) on FCC Form 159-W to the 
nearest dollar. Line 14 must be rounded to a whole dollar amount 
because this data field is linked to the FCC Form 159 Remittance Advice 
Block 25A (quantity), which can only accept whole numbers. It logically 
follows that if line 14 must be rounded, then the form's final line 
that calculates the total fee owed (line 16) should be rounded to the 
nearest dollar as well. Also, rounding lines 14 and 16 will nominally 
ease the filing and payment burdens of our Form 159-W filers. We 
received no comment on this administrative change as proposed in our FY 
2007 NPRM, and will therefore implement the change for FY 2007.
b. Satellite Space Station Licensees
    33. Beginning in FY 2004, we mailed regulatory fee pre-bills via 
surface mail to licensees in our two satellite space station service 
categories. Specifically, geostationary orbit space station (``GSO'') 
licensees received bills requesting regulatory fee payment for 
satellites that (1) were licensed by the Commission and operational on 
or before October 1 of the respective fiscal year; and (2) were not co-
located with and technically identical to another operational satellite 
on that date (i.e., were not functioning as a spare satellite). Non-
geostationary orbit space station (``NGSO'') licensees received pre-
bills requesting regulatory fee payment for systems that were licensed 
by the Commission and operational on or before October 1 of the 
respective fiscal year.
    34. For FY 2007, we proposed to continue mailing pre-bills for our 
GSO and NGSO satellite space station categories.\61\ We received no 
comment on this matter, and will continue to mail pre-bills to our GSO 
and NGSO satellite space station categories.
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    \61\ See FY 2007 NPRM, 22 FCC Rcd at 7980-81, para. 17.
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c. Media Services Licensees
    35. Beginning in FY 2003, we sent fee assessment notifications via 
surface mail to media services entities on a per-facility basis. The 
notifications provided the assessed fee amount for the facility in 
question, as well as the data attributes that determined the fee 
amount. We have since refined this initiative with improved 
results.\62\ In our FY 2007 NPRM, we proposed to continue our 
assessment initiative for media services licensees this year.\63\ We 
received no comment on the proposal.
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    \62\ Some of those refinements have been to provide licensees 
with a Commission-authorized Web site to update or correct any 
information concerning their facilities, and to amend their fee-
exempt status, if need be. Also, our notifications now provide 
licensees with a telephone number to call in the event that they 
need customer assistance. The notifications themselves have been 
refined so that licensees of fewer than four facilities receive 
individual fee assessment postcards for their facilities; whereas 
licensees of four or more facilities now receive a single assessment 
letter that lists all of their facilities and the associated 
regulatory fee obligation for each facility.
    \63\ Fee assessments were proposed again to be 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, Class A Television Stations, and 
LPTV Translators/Boosters, to the extent that applicants, permittees 
and licensees of such facilities do not qualify as government 
entities or non-profit entities. Fee assessments have not been 
issued for broadcast auxiliary stations in prior years, nor will 
they be issued in FY 2007.
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    36. Consistent with procedures used last year, we will mail 
assessment notifications to licensees to their primary record of 
contact populated in CDBS (Consolidated Database System) and to their 
secondary record of contact, if available. We will continue to make the 
Commission-authorized web site available to licensees to update or 
correct any information concerning their facilities and to amend their 
fee-exempt status, if need be.\64\ Licensees opting not to file their 
fee payment electronically through Fee Filer must submit a completed 
hardcopy FCC Form 159 with their fee payment; i.e., the assessment 
notifications cannot be used as a substitute for a completed Form 159.
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    \64\ The Commission-authorized Web site for media services 
licensees is http://www.fccfees.com.
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d. Commercial Mobile Radio Service Cellular and Mobile Services 
Assessments
    37. As we have done in prior years, we will send assessment letters 
to CMRS providers using Numbering Resource Utilization Forecast 
(``NRUF'') data that is based on ``assigned'' number counts that have 
been adjusted for porting to net Type 0 ports (``in'' and ``out'').\65\ 
The letters will not include Operating Company Numbers (``OCNs'') with 
their respective assigned number counts, but rather, OCNs with an 
aggregate total of assigned numbers for each carrier. As in prior 
years, carriers will be given an opportunity to amend their subscriber 
counts listed on the assessment letter.
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    \65\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2005 and Assessment and Collection of Regulatory Fees for 
Fiscal Year 2004, MD Docket Nos. 05-59 and 04-73, Report and Order 
and Order on Reconsideration, 20 FCC Rcd 12259, 12264, paras. 38-44 
(2005).
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    38. If the number of subscribers on the assessment letter differs 
from the subscriber count the service provider provided on its NRUF 
form, the provider may correct its subscriber count by returning the 
assessment letter or by contacting the Commission and stating a reason 
for the change, such as the purchase or the sale of a subsidiary, 
including the date of the transaction, and any other information that 
will help to justify a reason for the change.
    39. If we receive no response or correction to our initial 
assessment letter, we will expect the provider's section 9 fee payment 
to be based on the number of subscribers listed on that letter. We will 
review all amendments to assessment letters and determine whether a 
change in the number of subscribers is warranted. We will then generate 
and mail a final assessment letter. The final assessment letter will 
inform carriers as to whether or not we accept the amended subscriber 
count.
    40. Although an initial and a final assessment letter will be 
mailed to CMRS providers that have filed an NRUF form, some providers 
may not be sent assessment letters if they did not file the NRUF form. 
These providers shall compute their section 9 fee payment using the 
standard methodology \66\ that is currently in place for CMRS Wireless 
services (e.g., compute their subscriber counts as of December 31, 
2006), and submit their payment accordingly, either via Fee Filer, or 
attached to a completed hardcopy FCC Form 159. However, regardless of 
whether a provider receives an assessment letter or calculates its 
subscriber count independently, the Commission may audit the number of 
subscribers for which section 9 fees are paid. In the event that the 
Commission determines that the number of subscribers is inaccurate or 
that an insufficient reason is given for making a correction on the

[[Page 45915]]

initial assessment letter, the Commission will assess the carrier for 
the difference between what was paid and what should have been paid.
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    \66\ Federal Communications Commission, Regulatory Fees Fact 
Sheet: What You Owe--Commercial Wireless Services for FY 2005 at 1 
(rel. Jul. 2005).
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    41. Aggregate Subscriber Levels. Also in our FY 2007 NPRM, we noted 
that last year we eliminated the requirement for CMRS providers to 
identify their individual call signs when making their section 9 fee 
payment. This simplified the payment process for all CMRS providers by 
enabling them to pay their section 9 fees at the aggregate level.\67\ 
In our FY 2007 NPRM, we proposed to continue this practice and we 
received no comment. We shall therefore continue to allow CMRS 
providers to pay their section 9 fees at the aggregate subscriber 
level.
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    \67\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092, 
8105, para. 48 (2006).
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    42. Consolidated CMRS Section 9 Fee Categories. Finally, in our FY 
2007 NPRM, we proposed to consolidate the CMRS cellular and CMRS mobile 
fee categories into one CMRS fee category. This action would eliminate 
the need for CMRS providers to separate their subscriber counts into 
CMRS cellular and CMRS mobile fee categories during the fee payment 
process. At one time, the Commission perceived a need to monitor the 
CMRS cellular and CMRS mobile fee categories separately.\68\ However, 
we deem this no longer necessary and therefore proposed to reduce 
administrative burdens on CMRS providers by consolidating the two 
categories into one. We received no specific comment on this proposal. 
We will therefore consolidate our CMRS mobile category (which would 
have been payment type code 0712 in FY 2007) into the CMRS cellular 
category (payment type code 0711 in FY 2007). On a going forward basis, 
all CMRS cellular and mobile providers shall make their section 9 fee 
payments using the Commission's payment type code --11. This procedural 
change does not affect CMRS Messaging (Paging) providers, who will 
continue to make their section 9 fee payment using fee code 0713 in FY 
2007 and --13 in the outyears.
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    \68\ In our FY 1998 Report and Order, the Commission classified 
Wireless Communications Service (``WCS''), which included Personal 
Communications Services (Part 24), as a CMRS Mobile Service, stating 
that CMRS is ``an `umbrella' descriptive term attributed to various 
existing broadband services authorized to provide interconnected 
mobile radio services'' \68\ However, beginning in FY 1998, a 
separate fee code was provided for Personal Communications Service 
(``PCS'') to monitor the number of units in this service category.
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e. Cable Television Subscribers
    43. In our FY 2007 NRPM, we proposed to continue to permit cable 
television operators to base their regulatory fee payment on their 
company's aggregate year-end subscriber count, rather than requiring 
them to sub-report subscriber counts on a per community unit identifier 
(CUID) basis.\69\ This practice has worked well for the Commission the 
past three fiscal years and has eased administrative burdens for the 
cable television industry. One commenter supports this proposal.\70\ We 
received no opposing comments, and will thereby continue to employ this 
payment procedure this fiscal year.
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    \69\ See FY 2007 NPRM, 22 FCC Rcd at 7983, para. 28.
    \70\ ACA Comments at 2.
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    44. We also proposed to send an e-mail reminder to addresses 
populated in the Media Bureau's Cable Operations and Licensing System 
(``COALS''), as we did last year, to notify recipients of the FY 2007 
regulatory fee payment due date and the fee amount for basic cable 
television subscribers. Cable television operators are required to file 
their cable-related forms at the Commission via the COALS Web site. To 
date, more than 98 percent of all cable operators have their email 
addresses recorded in the database. One commenter supports this 
proposal.\71\ We received no opposing comments, and will therefore send 
an e-mail reminder to cable operators again this fiscal year.
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    \71\ ACA Comments at 2.
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    45. Sending reminders via e-mail has proven to be an effective 
practice and we therefore proposed to discontinue our other practice of 
sending fee assessment letters via surface mail to cable television 
operators who are on file as having paid regulatory fees the previous 
fiscal year. One commenter asks the Commission to continue sending fee 
assessment letters via surface mail to cable operators that serve fewer 
than 5,000 subscribers, stating that these operators rely exclusively 
on the U.S. postal service for their day-to-day operations.\72\ We 
decline the commenter's request. After conducting this assessment 
initiative for three years, we have concluded that it is inadequate for 
accurate assessment purposes and we will instead direct the 
Commission's resources towards more useful fee collection activities. 
In addition, we note that we make available all relevant regulatory fee 
material on our Web site. If regulatees cannot access the Internet to 
obtain the necessary information for paying their regulatory fees, they 
may request such information to be sent via surface mail by contacting 
the FCC Financial Operations HelpDesk at (877) 480-3201, Option 4.
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    \72\ ACA Comments at 3.
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III. Procedural Matters

A. Payment of Regulatory Fees

1. De Minimis Fee Payment Liability
    46. Consistent with past practice, regulatees whose total FY 2007 
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 2007 regulatory fees.
2. Standard Fee Calculations and Payment Dates
    47. The Commission will, for the convenience of payers, accept fee 
payments made in advance of the window for the payment of regulatory 
fees. Licensees are reminded that, under our current rules, the 
responsibility for payment of fees by service category is as follows:
    (a) Media Services: Regulatory fees must be paid for initial 
construction permits that were granted on or before October 1, 2006 for 
AM/FM radio stations, VHF/UHF television stations and satellite 
television stations. Regulatory fees must be paid for all broadcast 
facility licenses granted on or before October 1, 2006. In instances 
where a permit or license is transferred or assigned after October 1, 
2006, responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
    (b) Wireline (Common Carrier) Services: Regulatory fees must be 
paid for authorizations that were granted on or before October 1, 2006. 
In instances where a permit or license is transferred or assigned after 
October 1, 2006, responsibility for payment rests with the holder of 
the permit or license as of the fee due date.
    (c) Wireless Services: CMRS cellular, mobile, and messaging 
services (fees based upon a subscriber, unit or circuit count): 
Regulatory fees must be paid for authorizations that were granted on or 
before October 1, 2006. The number of subscribers, units or circuits on 
December 31, 2006 will be used as the basis from which to calculate the 
fee payment.
    The first eleven re