Assessment and Collection of Regulatory Fees For Fiscal Year 2008, 30563-30591 [E8-11891]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 73, Number 103 (Wednesday, May 28, 2008)]
[Proposed Rules]
[Pages 30563-30591]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-11891]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 08-65; FCC 08-126]


Assessment and Collection of Regulatory Fees For Fiscal Year 2008

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission will revise its Schedule of Regulatory Fees in 
order to recover the amount of regulatory fees that Congress has 
required it to collect for fiscal year 2008. Section 9 of the 
Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees under sections 9(b)(2) and 
9(b)(3), respectively, for annual ``Mandatory Adjustments'' and 
``Permitted Amendments'' to the Schedule of Regulatory Fees.

DATES: Comments are due May 30, 2008, and reply comments are due June 
6, 2008.

ADDRESSES: You may submit comments, identified by MD Docket No. 08-65, 
by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web Site: https://
www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
     E-mail: ecfs@fcc.gov. Include MD Docket No. 08-65 in the 
subject line of the message.
     Mail: Commercial overnight mail (other than U.S. Postal 
Service Express Mail, and Priority Mail, must be sent to 9300 East 
Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th 
Street, SW., Washington DC 20554.

FOR FURTHER INFORMATION CONTACT: Mika Savir, Office of Managing 
Director at (202) 418-0384.

SUPPLEMENTARY INFORMATION:
    Adopted: May 7, 2008.
    Released: May 8, 2008.
    By the Commission:

Table of Contents

 
                                                               Paragraph
                                                                  No.
 
I. Introduction.............................................           1
II. Discussion..............................................           2
    A. FY 2008 Regulatory Fee Assessment Methodology--                 4
     Development of FY 2008 Regulatory Fees.................
        1. Calculation of Revenue and Fee Requirements......           4
        2. Additional Adjustments to Payment Units..........           5
            a. Commercial Mobile Radio Service (``CMRS'')              5
             Messaging Service..............................
            b. Regulatory Fee Obligations for AM Expanded              6
             Band Broadcasters..............................
    B. International Bearer Circuits........................           8
    C. Administrative and Operational Issues................           9
        1. Use of Fee Filer.................................          10
        2. New Lock Box Bank................................          12
        3. New Receiving Bank for Wire Payments.............          13
        4. Proposals for Notification and Collection of               14
         Regulatory Fees....................................
            a. Interstate Telecommunications Service                  17
             Providers (``ITSPs'')..........................
            b. Satellite Space Station Licensees............          19
            c. Media Services Licensees.....................          21
            d. CMRS Cellular and Mobile Services Assessments          24
            e. Cable Television Subscribers.................          28
        5. Streamlined Regulatory Fee Payment Process for             30
         CMRS Cellular and Mobile Providers.................
        6. Future Streamlining of the Regulatory Fee                  31
         Assessment and Collection Process..................
III. Procedural Matters.....................................          32
    A. Payment of Regulatory Fees...........................          32
        1. De Minimis Fee Payment Liability.................          32
        2. Standard Fee Calculations and Payment Dates......          33
    B. Enforcement..........................................          34
    C. Initial Regulatory Flexibility Analysis..............          36

[[Page 30564]]

 
    D. Initial Paperwork Reduction Act Analysis.............          37
    E. Ex Parte Rules.......................................          38
    F. Filing Requirements..................................          39
IV. Order...................................................          44
V. Ordering Clauses.........................................          50
Attachments
Attachment A Initial Regulatory Flexibility Analysis
Attachment B Sources of Payment Unit Estimates for FY 2008
Attachment C Calculation of Revenue Requirements and Pro-
 Rata Fees
Attachment D Proposed FY 2008 Schedule of Regulatory Fees
Attachment E Factors, Measurements, and Calculations that
 Determine Station Contours and Population Coverages
Attachment F FY 2007 Schedule of Regulatory Fees
 

I. Introduction

    1. Section 9 of the Communications Act of 1934, as amended (``the 
Act''), requires the Commission to assess fees to recover the 
regulatory costs associated with the Commission's enforcement, policy 
and rulemaking, user information, and international activities.\1\ In 
this Notice of Proposed Rulemaking (``Notice''), we propose to collect 
$312,000,000 in regulatory fees for Fiscal Year (``FY'') 2008. In this 
proceeding we seek comment on several regulatory fee issues for FY 2008 
and also announce the new lock box address for payments to the 
Commission.
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    \1\ 47 U.S.C. 159.
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II. Discussion

    2. In this Notice, we seek comment on the development of FY 2008 
regulatory fees collected pursuant to section 9 of the Act. For FY 
2008, we propose to retain the established methods and policies that 
the Commission has used to collect regulatory fees in the past except 
as discussed below. For the FY 2008 regulatory fee cycle, we propose to 
retain most of the administrative measures used for notification, 
assessment, and pre-billing of regulatory fees of previous years. As we 
have in previous years, we seek comment on ways to improve the 
Commission's administrative processes for notifying entities of their 
regulatory fee obligations and collecting their payments.
    3. The Commission is obligated to collect $312,000,000 in 
regulatory fees during FY 2008 to fund the Commission's operations. 
Consistent with our established practice, we intend to collect these 
fees in the August-September 2008 time frame in order to collect the 
required amount by the end of the fiscal year.

A. FY 2008 Regulatory Fee Assessment Methodology--Development of FY 
2008 Regulatory Fees

1. Calculation of Revenue and Fee Requirements
    4. For our FY 2008 regulatory fee assessment, we propose to use 
essentially the same section 9 regulatory fee assessment methodology 
adopted for FY 2007, except as discussed below. Each fiscal year, the 
Commission proportionally allocates to fee categories the total amount 
that must be collected through our section 9 regulatory fees.\2\ 
Consistent with past practice, we propose to divide the FY 2008 payment 
amount by the number of payment units in each fee category to calculate 
the unit fee. For cases involving small fees, we propose to divide the 
resulting unit fee by the term of the license. We propose to round 
these fees consistent with the requirements of section 9(b)(2) of the 
Act. We seek comment on these proposals.
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    \2\ See Appendix C for the proposed FY 2008 regulatory fee 
assessment methodology, including a comparison to the FY 2007 
results.
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2. Additional Adjustments to Payment Units
a. Commercial Mobile Radio Service (``CMRS'') Messaging Service
    5. CMRS Messaging Services, which replaced the CMRS One-Way Paging 
fee category in FY 1997, includes all narrowband services.\3\ Since FY 
2002, we have proposed to continue our policy of maintaining the CMRS 
Messaging Service regulatory fee at the rate that was first established 
in FY 2002 \4\ (i.e., $0.08 per subscriber), noting that the subscriber 
base in this industry has declined significantly.\5\ We found that 
maintaining the CMRS Messaging regulatory fee rate at $0.08 per 
subscriber, rather than allowing it to increase, was the appropriate 
level of relief to be afforded to the messaging industry.\6\ In this 
NPRM we propose to maintain the messaging service regulatory fee at 
$0.08 per subscriber. We seek comment on this proposal. Commenters 
suggesting a different approach, i.e., a proposal other than keeping 
the fee at $0.08 per subscriber, should provide industry data to 
support their position.
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    \3\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 1997, MD Docket No. 96-186, Report and Order, 12 FCC Rcd 17161, 
17184-85, para. 60 (1997) (``FY 1997 Report and Order'').
    \4\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2003, MD Docket No. 03-83, Report and Order, 18 FCC Rcd 15985, 
15992, para. 21 (2003) (``FY 2003 Report and Order'').
    \5\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2007, MD Docket No. 07-81, Notice of Proposed Rulemaking, 22 
FCC Rcd 7975, 7978, para. 7 (2007) (``FY 2007 NPRM''). The 
subscriber base in the paging industry declined 83 percent from 40.8 
million to 7.1 million, from FY 1997 to FY 2007, according to FY 
2007 collection data, as of September 30, 2007.
    \6\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2007, MD Docket No. 07-81, Report and Order and Further Notice 
of Proposed Rulemaking, 22 FCC Rcd 15712, 15715, para. 9 (2007) 
(``FY 2007 Report and Order'').
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b. Regulatory Fee Obligations for AM Expanded Band Broadcasters
    6. The Commission initiated the migration of existing standard band 
AM stations to the expanded band to reduce interference and congestion 
in the existing standard band.\7\ AM expanded band radio stations, in 
the 1610-1700 kHz range, are currently exempt from payment of 
regulatory fees as a matter of policy. Standard band AM stations, in 
the 540-1600 kHz range, are subject to regulatory fees. Our decision 
several years ago not to require section 9 regulatory fee payments for 
AM expanded band stations was not a permanent exemption from regulatory

[[Page 30565]]

fees for AM expanded band radio service.\8\
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    \7\ 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, 12267, para. 25 
(2005) (``FY 2005 Report and Order'').
    \8\ FY 2005 Report and Order, 20 FCC Rcd at 12267, para. 25.
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    7. We now seek comment on the most efficient methods of assessing a 
regulatory fee on expanded band AM licenses. We seek comment 
particularly regarding those instances where the licensee chooses to 
retain the expanded band service while giving up the standard band 
station.\9\ We also seek comment on whether we should impose a separate 
regulatory fee on an expanded band licensee that holds a standard band 
license and continues to operate both stations (i.e., the licensee is 
not migrating to the expanded band but is keeping two licenses).
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    \9\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2005, MD Docket No. 05-59, Notice of Proposed Rulemaking, 20 
FCC Rcd 3885, 3896, para. 36 (2005).
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B. International Bearer Circuits

    8. 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 grant VSNL's 
petition and seek comment herein on the methodology used to calculate 
regulatory fees for providers of international bearer circuits. We seek 
comment on whether the Commission should retain the current methodology 
used to these regulatory fees, or change or modify the methodology (and 
if so, how?).
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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.
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C. Administrative and Operational Issues

    9. We seek comment on the administrative and operational processes 
used to collect the annual section 9 regulatory fees. These issues do 
not affect the amount of regulatory fees parties are obligated to 
submit; however, the administrative and operational issues affect the 
process of submitting payment. We invite comment on ways to improve 
these processes.
    1. Use of Fee Filer
    10. We continue to encourage regulatees to use the Commission's 
online electronic Fee Filer application. Using the Commission's Fee 
Filer application reduces paperwork burdens on payors because it 
eliminates the need to file a paper FCC Form 159. It also allows payors 
to make a single payment for pre-billed and non-billed regulatory fees. 
Regulatees submitting more than ten (10) Form 159-Cs are strongly 
encouraged to use Fee Filer when sending their regulatory fee payment.
    11. Regulatees who file their FCC Form 159 information online via 
Fee Filer may choose to pay by online ACH debit from a bank account, by 
online credit card, by check or money order, by wire, or by credit card 
on paper. Payors wishing to remit payment via check, money order, wire, 
or credit card on paper must print a Fee Filer-generated Form 159-E 
Remittance Voucher to accompany payment, in lieu of Form 159. We note 
that Fee Filer will accept credit card payments of up to $99,999.99; 
the FCC accepts ACH debits (via Fee Filer) from a bank account in any 
denomination. All online payments are considered received by the FCC at 
the time that the FCC accepts the payor's bank account information or 
authorizes the payor's credit card.
2. New Lock Box Bank
    12. We advise all regulatees that the Commission has a new lock box 
bank. All lock box payments to the Commission for FY 2008 will be 
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC. 
For all regulatory fees, the address is: Federal Communications 
Commission, Regulatory Fees, P.O. Box 979084, St. Louis, MO 63197-9000.
3. New Receiving Bank for Wire Payments
    13. We also advise all regulatees that the Commission has a new 
receiving bank for wire payments. The new receiving bank is the Federal 
Reserve Bank, New York, New York (TREAS NYC). When making a wire 
transfer, regulatees must fax a copy of their completed remittance 
instrument to U.S. Bank, St. Louis, Missouri at (314) 418-4232 at least 
one hour before initiating the wire transfer (but on the same business 
day), so as to not delay crediting their account. Wire transfers 
initiated after 6:00 p.m. (EDT) will be credited the next business day. 
Complete instructions for making wire payments are posted at https://
www.fcc.gov/fees/wiretrans.html.
4. Proposals for Notification and Collection of Regulatory Fees
    14. Public Notices and fact sheets. In this section, we seek 
comment on the administrative processes that the Commission uses to 
notify regulatees and collect regulatory fees. Each year we post public 
notices and fact sheets pertaining to regulatory fees on our Web site. 
These documents contain information about the payment due date and the 
regulatory fee payment procedures. We will continue to post this 
information on https://www.fcc.gov/fees/regfees.html. We seek comment on 
ways to improve our regulatory fee public notices and fact sheets.
    15. Regulatees are expected to pay their yearly regulatory fees by 
filing FCC Form 159 or by accessing the Commission's online Fee Filer 
application.\15\ 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 Help Desk at (877) 480-3201, Option 4. We seek 
comment on ways to improve our administrative processes.
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    \15\ https://www.fcc.gov/fees/feefiler.html.
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    16. Pre-bills. We will not send public notices and fact sheets to 
regulatees en masse; however, we propose to continue to send specific 
regulatory fee pre-bills or assessment notifications via surface mail 
to the select fee categories discussed below.\16\ Pre-bills are 
hardcopy billing statements that the Commission mails to certain 
regulatees. The Commission currently sends pre-bills to interstate 
telecommunications service providers (``ITSPs''), satellite space 
station licensees (both geostationary and non-geostationary), to

[[Page 30566]]

holders of Cable Television Relay Service (``CARS'') licenses, and 
earth station licensees. The remaining regulatees do not receive pre-
bills. We seek comment on ways to improve this practice. Commenters 
should discuss whether we should add other regulatory fee categories to 
our pre-bill procedures.
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    \16\ 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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a. Interstate Telecommunications Service Providers (``ITSPs'')
    17. In FY 2001, we began mailing pre-completed FCC Form 159-W 
assessments to carriers in an effort to 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 mailed the 
completed FCC Form 159-W as a pre-bill, rather than as an assessment of 
amount due. Other than the manner in which Form 159- payments were 
entered into our financial system, carriers experienced no procedural 
changes regarding the use of the FCC Form 159-W when submitting payment 
of their ITSP regulatory fees. We seek comment on whether we should 
continue this pre-billing process for ITSPs in FY 2008.
    18. In FY 2007, we adopted a proposal to round lines 14 (total 
subject revenues) and 16 (total regulatory fee owed) on FCC Form 159-W 
to the nearest dollar. This revision enabled the Commission to process 
the ITSP regulatory fee payments more quickly because rounding was no 
longer a hindrance that slowed the processing of payments. In FY 2008, 
we will continue to round lines 14 and 16 on FCC Form 159-W to the 
nearest dollar. We seek comment on other ways that we can improve our 
pre-billing initiative for ITSPs.
b. Satellite Space Station Licensees
    19. 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.
    20. For FY 2008, we propose to continue mailing pre-bills for our 
GSO and NGSO satellite space station categories. We seek comment on 
this proposal. We emphasize that the pre-bills that we propose to 
generate for our GSO and NGSO licensees will only be for the satellite 
or system aspects of their respective operations. GSO and NGSO 
licensees typically have regulatory fee obligations in other service 
categories (e.g., earth stations, broadcast facilities), and we expect 
satellite operators to meet their full fee payment obligation for all 
of their FCC holdings. We seek comment on our proposal to generate 
regulatory fee pre-bills for our two satellite space station service 
categories.
c. Media Services Licensees
    21. 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.\17\ We propose to continue our assessment initiative for media 
services licensees in FY 2008.\18\ We seek comment on this proposal.
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    \17\ 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.
    \18\ We again propose to issue fee assessments for AM and FM 
Radio Stations, AM and FM Construction Permits, FM Translators/
Boosters, VHF and UHF Television Stations, VHF and UHF Television 
Construction Permits, Satellite Television Stations, Low Power 
Television (``LPTV'') Stations and LPTV Translators/Boosters, to the 
extent that applicants, permittees and licensees of such facilities 
do not qualify as government entities or non-profit entities. Fee 
assessments have not been issued for broadcast auxiliary stations in 
prior years, nor will they be issued in FY 2008.
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    22. Consistent with procedures used last year, we propose to mail 
assessment notifications to licensees to their primary record of 
contact populated in our Consolidated Database System (``CDBS'') and to 
their secondary record of contact, if available. We seek comment on 
this proposal. 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.\19\ If there is a change of address for the facility, it is 
the licensee's responsibility to make the address change in the Media 
Bureau's CDBS system, as well as in the Commission's Registration 
System (``CORES'').
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    \19\ The Commission-authorized Web site for media services 
licensees is https://www.fccfees.com.
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    23. Under our proposal, licensees must still submit a completed FCC 
Form 159 Remittance Advice with their fee payments. The assessment 
notifications, whether in the form of a letter or postcard, cannot be 
used as a substitute for a completed Form 159.
d. CMRS Cellular and Mobile Services Assessments
    24. As we have done in prior years, we propose to mail an 
assessment letter to Commercial Mobile Radio Service (``CMRS'') 
providers using data from the Numbering Resource Utilization Forecast 
(``NRUF'') report that is based on ``assigned'' number counts that have 
been adjusted for porting to net Type 0 ports (``in'' and ``out'').\20\ 
This letter will include a listing of the carrier's Operating Company 
Numbers (``OCNs'') upon which the assessment is based.\21\ Consistent 
with existing practice, the letters will not include OCNs with their 
respective assigned number counts, but rather, an aggregate total of 
assigned numbers for each carrier. We also propose to continue our 
procedure of giving entities an opportunity to revise their subscriber 
counts by sending two rounds of assessment letters--an initial 
assessment and a final assessment letter. We seek comment on this 
proposal.
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    \20\ 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, para. 38-44 
(2005).
    \21\ Id.
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    25. If the number of subscribers on the initial assessment letter 
differs from the subscriber count the service provider provided on its 
NRUF form, the carrier can 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. If we 
receive no response or correction to our initial assessment letter, we 
will expect the fee payment to be based on the number of subscribers 
listed on the initial assessment. We will review all responses to 
initial assessment letters and determine whether a change in the number 
of subscribers is warranted. We

[[Page 30567]]

will then generate and mail a final assessment letter. The final 
assessment letter will inform carriers as to whether or not we accept 
the changed number of subscribers. As in previous years, operators will 
certify their subscriber counts in Block 30 of the FCC Form 159 
Remittance Advice when making their regulatory fee payments. We seek 
comment on our current procedures of assessing CMRS subscriber counts 
(for NRUF filers) and other ways to improve the process.
    26. Some carriers may not be sent a letter of assessment because 
they had not filed the NRUF form. We propose that these carriers 
compute their fee payment using the standard methodology \22\ that is 
currently in place for CMRS Wireless services (e.g., compute their 
subscriber counts as of December 31, 2007), and submit their payment 
accordingly on FCC Form 159. The Commission may audit the number of 
subscribers for which regulatory fees are paid, whether a carrier 
receives an assessment letter or computes the subscriber count itself. 
In the event that the Commission determines that the number of 
subscribers is inaccurate or that an insufficient reason is given for 
making a correction on the initial assessment letter, the Commission 
will assess the carrier for the difference between what was paid and 
what should have been paid.
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    \22\ 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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    27. We, therefore, propose to (1) derive the subscriber count from 
NRUF data based on ``assigned'' number counts that have been adjusted 
for porting to net Type 0 ports (``in'' and ``out''); (2) provide 
carriers with an opportunity to revise their subscriber counts at the 
time when the initial assessment letter is mailed; and (3) require 
carriers to confirm their subscriber counts at the aggregate level 
using data in the NRUF report. We seek comment on these proposals.
e. Cable Television Subscribers
    28. We propose 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 on the FCC 
Form 159 Remittance Advice. We seek comment on this proposal. 
Operators, after providing their company's aggregate subscriber count 
in Block 25A of the FCC Form 159, will still be required to certify the 
accuracy of the subscriber count in Block 30. This practice has worked 
well for the Commission the past three fiscal years and has eased 
administrative burdens for the cable television industry.
    29. Beginning in FY 2006, we sent an electronic message to e-mail 
addresses populated in the Media Bureau's Cable Operations and 
Licensing System (``COALS'') to notify them of the amount and due date 
of regulatory fees for basic cable television subscribers. We propose 
to continue this effort for FY 2008, but we are not sure if this 
notification practice is effective. We seek comment on whether this 
practice of sending electronic e-mail notification to cable operators 
should be continued.
5. Streamlined Regulatory Fee Payment Process for CMRS Cellular and 
Mobile Providers
    30. In FY 2006, we streamlined the CMRS payment process by 
eliminating the requirement for CMRS providers to identify their 
individual calls signs when making their regulatory fee payment, 
requiring instead for CMRS providers to pay their regulatory fees only 
at the aggregate subscriber level without having to identify their 
various call signs.\23\ We propose to continue this practice in FY 
2008. We seek comment on this proposal. In addition, to lessen the 
administrative burden on licensees, we proposed in FY 2007 to 
consolidate the CMRS cellular and CMRS mobile fee categories into one 
fee category and as one fee code, thereby eliminating the requirement 
for CMRS providers to separate their subscriber counts into CMRS 
cellular and CMRS mobile fee categories during the regulatory fee 
payment process. This consolidation of fee categories enabled the 
Commission to process payments more quickly and accurately. For FY 
2008, we propose to continue this practice of combining the CMRS 
cellular and CMRS mobile fee categories into one regulatory fee 
category. We seek comment on this proposal.
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    \23\ 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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6. Future Streamlining of the Regulatory Fee Assessment and Collection 
Process
    31. We continue to welcome comments concerning our commitment to 
reviewing, streamlining, and modernizing our statutorily required fee 
assessment and collection procedures. Our areas of particular interest 
include: (1) The process for notifying licensees about changes in the 
annual Schedule of Regulatory Fees and how it can be improved; (2) the 
most effective way to disseminate regulatory fee assessments and bills, 
e.g., through surface mail, e-mail, list server using Listserv, online 
Web site, or some other mechanism; (3) the fee payment process, 
including how the agency's online regulatory fee filing system (Fee 
Filer) can be enhanced; (4) the timing of fee payments, including 
whether we should alter the existing section 9 regulatory fee payment 
window in any way; and (5) the timing of fee assessments and pre-bills.

III. Procedural Matters

A. Payment of Regulatory Fees

1. De Minimis Fee Payment Liability
    32. Consistent with past practice, regulatees whose total FY 2008 
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 2008 regulatory fees.
2. Standard Fee Calculations and Payment Dates
    33. 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: 
\24\
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    \24\ As we noted earlier in our request for comments in possible 
adjustments to payment units, e.g., para. 6-12, we seek comment 
addressing several areas in our regulatory fees. Such comments may 
result in modification of the fee calculations discussed above and 
the methodology stated below. See, e.g., note 24.
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     Media Services: Regulatory fees must be paid for initial 
construction permits that were granted on or before October 1, 2007 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, 2007. In instances 
where a permit or license is transferred or assigned after October 1, 
2007, responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
     Wireline (Common Carrier) Services: Regulatory fees must 
be paid for authorizations that were granted on or before October 1, 
2007. In instances where a permit or license is transferred or assigned 
after October 1, 2007, responsibility for payment rests with the holder 
of the permit or license as of the fee due date.
     Wireless Services: CMRS cellular, mobile, and messaging 
services (fees based upon a subscriber, unit or circuit

[[Page 30568]]

count): Regulatory fees must be paid for authorizations that were 
granted on or before October 1, 2007. The number of subscribers, units 
or circuits on December 31, 2007 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 five-year or ten-year 
term of initial license, and only pay regulatory fees again when the 
license is renewed or a new license is obtained. We include these 
eleven categories in our Schedule of Regulatory Fees to publicize our 
estimates of the number of ``small multi-year wireless'' licenses that 
will be renewed or newly obtained in FY 2008.
     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, 
2007.\25\ Regulatory fees also must be paid for CARS licenses that were 
granted on or before October 1, 2007. In instances where a CARS license 
is transferred or assigned after October 1, 2007, responsibility for 
payment rests with the holder of the license as of the fee due date.
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    \25\ Cable television system operators should compute their 
basic subscribers as follows: Number of single family dwellings + 
number of individual households in multiple dwelling unit 
(apartments, condominiums, mobile home parks, etc.) paying at the 
basic subscriber rate + bulk rate customers + courtesy and free 
service. Note: Bulk-Rate Customers = Total annual bulk-rate charge 
divided by basic annual subscription rate for individual households. 
Operators may base their count on ``a typical day in the last full 
week'' of December 2007, rather than on a count as of December 31, 
2007. But see para. 8-12 above.
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     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, 2007. In instances where a license 
is transferred or assigned after October 1, 2007, 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 based on 
the number of active circuits as of December 31, 2007.\26\
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    \26\ Regulatory fees for International Bearer Circuits are to be 
paid by facilities-based common carriers that have active 
international bearer circuits in any transmission facility for the 
provision of service to an end user or resale carrier, which 
includes active circuits to themselves or to their affiliates. In 
addition, non-common carrier satellite operators must pay a fee for 
each circuit sold or leased to any customer, including themselves or 
their affiliates, other than an international common carrier 
authorized by the Commission to provide U.S. international common 
carrier services. Non-common carrier submarine cable operators are 
also to pay fees for any and all international bearer circuits sold 
on an indefeasible right of use (``IRU'') basis or leased to any 
customer, including themselves or their affiliates, other than an 
international common carrier authorized by the Commission to provide 
U.S. international common carrier services. Non-common carrier 
submarine cable operators are also to pay fees for any and all 
international bearer circuits provided as a private line service to 
an international common carrier authorized by the Commission to 
provide U.S. international common carrier services. See Assessment 
and Collection of Regulatory Fees for Fiscal Year 2001, MD Docket 
No. 01-76, Report and Order, 16 FCC Rcd 13525, 13593 (2001); 
Regulatory Fees Fact Sheet: What You Owe--International and 
Satellite Services Licensees for FY 2004 at 3 (rel. July 2004) (the 
fact sheet is available on the FCC Web site at: (https://
hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-249904A4.pdf).
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B. Enforcement

    34. 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. As a reminder to 
all licensees, section 9(c) of the Act requires us to impose an 
additional charge as a penalty for late payment of any regulatory 
fee.\27\ 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. Failure to pay regulatory fees 
and/or any late penalty will subject regulatees to sanctions, including 
the Commission's Red Light Rule \28\ and the provisions set forth in 
the Debt Collection Improvement Act of 1996 (``DCIA'').\29\ We also 
assess administrative processing charges on delinquent debts to recover 
additional costs incurred in processing and handling the related debt 
pursuant to the DCIA and section 1.1940(d) of the Commission's 
rules.\30\ 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.
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    \27\ 47 U.S.C. 159(c).
    \28\ See 47 CFR 1.1910.
    \29\ Delinquent debt owed to the Commission triggers application 
of the ``red light rule'' which requires offsets or holds on pending 
disbursements. 47 CFR 1.1910. In 2004, the Commission adopted rules 
implementing the requirements of the DCIA. See Amendment of Parts 0 
and 1 of the Commission's Rules, MD Docket No. 02-339, Report and 
Order, 19 FCC Rcd 6540 (2004); 47 CFR part 1, subpart O, Collection 
of Claims Owed the United States.
    \30\ 47 CFR 1.1940(d).
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    35. We will withhold action on any applications or other requests 
for benefits filed by anyone who is delinquent in any non-tax debts 
owed to the Commission (including regulatory fees) and will ultimately 
dismiss those applications or other requests if payment of the 
delinquent debt or other satisfactory arrangement for payment is not 
made.\31\ 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).\32\
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    \31\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
    \32\ See also para. 122, below.
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C. Initial Regulatory Flexibility Analysis

    36. An initial regulatory flexibility analysis (``IRFA'') is 
contained in Attachment A of the Appendix. Comments to the IRFA must be 
identified as responses to the IRFA and filed by the deadlines for 
comments on the Notice. The Commission will send a copy of the Notice, 
including the IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration.

D. Initial Paperwork Reduction Act Analysis

    37. This Notice does not contain proposed or modified information 
collections subject to the Paperwork Reduction Act of 1995 (``PRA''), 
Public Law 104-13. This Notice does not contain any new or modified 
``information collection burden for small business concerns with fewer 
than 25 employees,'' pursuant to the Small Business Paperwork Relief 
Act of 2002, Public Law 107-198.\33\ The forms already required by the 
Commission's regulatory fee process have been approved by the Office of 
Management and Budget under information collection 3060-0589.
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    \33\ See 44 U.S.C. 3506(c)(4).
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E. Ex Parte Rules

    38. This is as a ``permit-but-disclose'' proceeding subject to the 
requirements under section 1.1206(b) of the Commission's rules.\34\ Ex 
parte presentations are permissible if disclosed in accordance with 
Commission rules, except during the Sunshine Agenda period when 
presentations, ex parte or otherwise, are generally prohibited. Persons 
making oral ex parte presentations are reminded

[[Page 30569]]

that a memorandum summarizing a presentation must contain a summary of 
the substance of the presentation and not merely a listing of the 
subjects discussed. More than a one- or two-sentence description of the 
views and arguments presented is generally required.\35\ Additional 
rules pertaining to oral and written presentations are set forth in 
section 1.1206(b).
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    \34\ See 47 CFR 1.1206(b); see also 47 CFR 1.1202, 1.1203.
    \35\ See 47 CFR 1.1206(b)(2).
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F. Filing Requirements

    39. Comments and Replies. Pursuant to sections 1.415 and 1.419 of 
the Commission's rules,\36\ interested parties may file comments on or 
before the dates indicated on the first page of this document. Comments 
may be filed using: (1) The Commission's Electronic Comment Filing 
System (``ECFS''), (2) the Federal Government's eRulemaking Portal, or 
(3) procedures for filing paper copies.\37\
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    \36\ See id. section 1.415, 1.419.
    \37\ See Electronic Filing of Documents in Rulemaking 
Proceedings, 13 FCC Rcd 11322 (1998).
---------------------------------------------------------------------------

    40. Electronic Filers: Comments may be filed electronically using 
the Internet by accessing the ECFS: https://www.fcc.gov/cgb/ecfs or the 
Federal eRulemaking Portal: https://www.regulations.gov. Filers should 
follow the instructions provided on the Web site for submitting 
comments. For ECFS filers, if multiple docket or rulemaking numbers 
appear in the caption of this proceeding, filers must transmit one 
electronic copy of the comments for each docket or rulemaking number 
referenced in the caption. In completing the transmittal screen, filers 
should include their full name, U.S. Postal Service mailing address, 
and the applicable docket or rulemaking number. Parties may also submit 
an electronic comment by Internet e-mail. To get filing instructions, 
filers should send an e-mail to ecfs@fcc.gov, and include the following 
words in the body of the message, ``get form.'' A sample form and 
directions will be sent in response.
    41. Paper Filers: Parties who choose to file by paper must file an 
original and four copies of each filing. If more than one docket or 
rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number. Filings can be sent by hand or messenger delivery, 
by commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail (although we continue to experience delays in 
receiving U.S. Postal Service mail). All filings must be addressed to 
the Commission's Secretary, Office of the Secretary, Federal 
Communications Commission.
     The Commission's contractor will receive hand-delivered or 
messenger-delivered paper filings for the Commission's Secretary at 236 
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing 
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be 
held together with rubber bands or fasteners. Any envelopes must be 
disposed of before entering the building.
     Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.
     U.S. Postal Service first-class, Express, and Priority 
mail should be addressed to 445 12th Street, SW., Washington, DC 20554.
    42. Availability of Documents. Comments, reply comments, and ex 
parte submissions will be available for public inspection during 
regular business hours in the FCC Reference Center, Federal 
Communications Commission, 445 12th Street, SW., CY-A257, Washington, 
DC 20554. These documents will also be available free online, via ECFS. 
Documents will be available electronically in ASCII, Word, and/or Adobe 
Acrobat.
    43. Accessibility Information. To request information in accessible 
formats (computer diskettes, large print, audio recording, and 
Braille), send an e-mail to fcc504@fcc.gov or call the FCC's Consumer 
and Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-
0432 (TTY). This document can also be downloaded in Word and Portable 
Document Format (``PDF'') at https://www.fcc.gov.

IV. Order

    44. In WT Docket No. 03-66 (the ``BRS/EBS Proceeding''), the 
Commission sought comment on proposed changes to the regulatory fee 
structure for BRS.\38\ In 2006, the Commission adopted a new regulatory 
fee structure for BRS (the ``2006 Decision'').\39\ Specifically, as 
noted in the FY 2007 NPRM, the Commission adopted a megahertz-based 
approach for BRS regulatory fees and, using a concept similar to the 
Commission's annual scale of regulatory fees for broadcast television 
stations, established in the 2006 Decision three rate tiers based on 
the BTA ranking of each license.\40\ Under the 2006 Decision, BRS 
regulatory fees will use a MHz-based formula with three tiers of fees 
by markets. Instead of a flat fee amount per BRS license, BRS licensees 
will pay a fee in one of three fee categories based on Basic Trading 
Areas (``BTA'') ranked by population size.\41\ The highest fee will be 
assessed to licenses in BTAs ranked 1-60, licenses in BTAs ranked 61-
200 will have a lesser fee, and licenses for BTAs ranked 201-493 will 
pay the lowest fee.\42\
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    \38\ 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, WT Docket No. 03-66, Report and 
Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 
14296, para. 357 (2004) (``BRS/EBS Report and Order and FNPRM'').
    \39\ 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, WT Docket No. 03-66, Order on 
Reconsideration and Fifth Memorandum Opinion and Order and Third 
Memorandum Opinion and Order and Second Report and Order, 21 FCC Rcd 
5606, 5756-59, para. 367-376 (2006) (``2006 Decision'').
    \40\ See FY 2007 NPRM, 22 FCC Rcd at 7978, para. 8 n.8, citing 
the 2006 Decision. The three tiers are based on three categories of 
Basic Trading Areas (``BTA'') population rankings: BTAs 1-60, BTAs 
61-200, and BTAs 201-493. For BRS licensees that are licensed by 
geographic licensed service area (``GSA''), the BTA is the 
geographic center point of where its GSA is located. See 2006 
Decision, 21 FCC Rcd at 5759, para. 376.
    \41\ See 2006 Decision, 21 FCC Rcd at 5759, para. 376.
    \42\ Id.
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    45. In the FY 2007 NPRM, we sought comment on the implementation of 
the new BRS fee structure. Specifically, we invited commenters to 
suggest a simple method of calculating BRS regulatory fees that 
incorporates the complexity of using both elements of the 2006 
Decision, namely, the three rate tiers, to be based on the BTA ranking 
of each license, and the per megahertz fee.\43\ In particular, we 
invited comment on a formula or method for calculating regulatory fees 
that incorporates the 2006 Decision in a manner ``sensitive to rural 
operators in less densely populated areas.\44\
---------------------------------------------------------------------------

    \43\ FY 2007 NPRM, 22 FCC Rcd at 7978, para. 8.
    \44\ Id.
---------------------------------------------------------------------------

    46. In a Further Notice of Proposed Rulemaking, we proposed to use 
a weighted average approach based on the 2006 Decision to establish 
three tiers of regulatory fees using a 3:2:1 ratio, i.e., 3x for Tier 
1, 2x for Tier 2, and 1x for Tier 3, where x equals the base fee amount 
(Pro-rated FY Revenue Requirement for BRS divided by the weighted total 
number of BRS payment units).\45\ In adopting three fee tiers for

[[Page 30570]]

BRS, the Commission considered that BTAs ranked 1-60 generally have a 
population of greater than one million, BTAs ranked 61-200 generally 
have population of 250,000 to one million, and BTAs ranked 201-493 have 
a population of less than 250,000.\46\
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    \45\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2007, MD Docket No. 07-81, Report and Order and Further Notice 
of Proposed Rulemaking, 22 FCC Rcd 15712, 15726-15727, para. 46-50 
(2007) (``2007 FNPRM'').
    \46\ Id., 22 FCC Rcd at 15724-15725, para. 49.
---------------------------------------------------------------------------

    47. The second element of the 2006 Decision involved setting a fee 
per megahertz of licensed BRS spectrum. However, throughout the nation, 
BTA-by-BTA, the BRS radio service and its licensees are in the midst of 
a multi-year transition to a new band plan that, among other things, is 
modifying the amount of spectrum designated and licensed for BRS.\47\ 
Given the complexities associated with this ``moving target,'' we 
tentatively concluded that the public interest would be best served by 
implementing the fee per megahertz approach after the BRS transition 
concludes nationwide.\48\
---------------------------------------------------------------------------

    \47\ The transition plan creates a process for relocating 
Educational Broadband Service (``EBS'') licensees and BRS licensees 
from their current channel locations to their new spectrum blocks in 
the Lower Band Segment (``LBS''), Middle band Segment (``MBS''), or 
Upper Band Segment (``UBS''). The transition occurs by BTA and is 
undertaken by a proponent or multiple proponents. A proponent(s) 
must pay the cost of transitioning EBS licensees. The transition 
occurs in the following three phases: the Initiation Phase, the 
Transition Planning Phase, and the Transition Completion Phase.
    \48\ FY 2007 FNPRM, 22 FCC Rcd at 15727, para. 50.
---------------------------------------------------------------------------

    48. Comments on the 2007 FNPRM were filed by WCA \49\ and by the 
law firm of Blooston, Mordkofsky, Dickens, Duffy, & Prendergast, LLP 
(``BloostonLaw'').\50\ WCA continues to advocate basing regulatory fees 
on a licensee's MHz/population, which the Commission has previously 
rejected.\51\ WCA also advocates making no changes until the transition 
is complete.\52\ BloostonLaw argues that there is insufficient 
information in the record to conclude that this proposal would benefit 
rural operators.\53\ BloostonLaw also contends that the fee should be 
based on the population within the licensee's geographic service 
area.\54\
---------------------------------------------------------------------------

    \49\ Comments of the Wireless Communications Association 
International, Inc., MD Docket No. 07-81 (filed Sep. 17, 2007) 
(``WCA Comments'').
    \50\ Comments, Blooston, Mordkofsky, Dickens, Duffy, & 
Prendergast, LLP, MD Docket No. 07-81 (filed Sep. 17, 2007) 
(``BloostonLaw Comments'').
    \51\ WCA Comments at 3-5.
    \52\ WCA Comments at 1.
    \53\ BloostonLaw Comments at 1-3.
    \54\ Id. at 3-4.
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    49. After reviewing the record, we now conclude that we will 
continue the current practice of charging a flat fee per license until 
the BRS/EBS transition to the new band plan. Neither of the commenters 
supported the proposal contained in the 2007 FNPRM. Furthermore, WCA 
urges that no changes be made until the transition is complete. We also 
note that the transition is proceeding quickly. Transition initiation 
plans have been filed in 355 out of 493 BTAs, and the transition has 
been completed in 207 BTAs.\55\ Any changes we adopt could not take 
effect until we adopt the changes, the Commission sends a report to 
Congress, and 90 days passes. If the transition is complete in 2009 or 
2010, which seems possible, the interim system proposed in the 2007 
FNPRM could only be in place for one year. This effort would risk 
confusing licensees, and we believe that devoting Commission resources 
to implementing this interim system would be difficult to justify. 
Accordingly, we conclude that we will maintain the current system of 
charging a flat, per-license fee until the transition to the new band 
plan is complete.
---------------------------------------------------------------------------

    \55\ As of 2/1/08.
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V. Ordering Clauses

    50. Accordingly, It is Ordered that, pursuant to sections 4(i) and 
(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47 
U.S.C. 154(i), 154(j), 159, and 303(r), this Notice of Proposed 
Rulemaking and Order is hereby adopted.
    51. It is Further Ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, Shall Send a 
copy of this Notice of Proposed Rulemaking, including the Initial 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the U.S. Small Business Administration.

Federal Communications Commission.
Gloria J. Miles,
Federal Register Liaison.

Attachment A--Initial Regulatory Flexibility Analysis

    52. As required by the Regulatory Flexibility Act (``RFA''),\56\ 
the Commission has prepared this Initial Regulatory Flexibility 
Analysis (``IRFA'') of the possible significant economic impact on 
small entities by the policies and rules in the present NPRM. Written 
public comments are requested on this IRFA. Comments must be identified 
as responses to the IRFA and must be filed on or before the dates 
indicated on the first page of this NPRM. The Commission will send a 
copy of the NPRM, including the IRFA, to the Chief Counsel for Advocacy 
of the Small Business Administration.\57\ In addition, the NPRM and 
IRFA (or summaries thereof) will be published in the Federal 
Register.\58\
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    \56\ 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'').
    \57\ 5 U.S.C. 603(a).
    \58\ Id.
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I. Need for, and Objectives of, the Proposed Rules

    53. This rulemaking proceeding is initiated to obtain comments 
concerning the Commission's proposed amendment of its Schedule of 
Regulatory Fees in the amount of $312,000,000, the amount that Congress 
has required the Commission to recover. The Commission seeks to collect 
the necessary amount through its proposed Schedule of Regulatory Fees 
in the most efficient manner possible and without undue public burden.

II. Legal Basis

    54. This action, including publication of proposed rules, is 
authorized under sections (4)(i) and (j), 9, and 303(r) of the 
Communications Act of 1934, as amended.\59\
---------------------------------------------------------------------------

    \59\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
---------------------------------------------------------------------------

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

    55. 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.\60\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \61\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\62\ 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.\63\
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    \60\ 5 U.S.C. 603(b)(3).
    \61\ 5 U.S.C. 601(6).
    \62\ 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.''
    \63\ 15 U.S.C. 632.

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[[Page 30571]]

    56. Small Businesses. Nationwide, there are a total of 22.4 million 
small businesses, according to SBA data.\64\
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    \64\ See SBA, Programs and Services, SBA Pamphlet No. CO-0028, 
at p. 40 (July 2002).
---------------------------------------------------------------------------

    57. Small Organizations. Nationwide, there are approximately 1.6 
million small organizations.\65\
---------------------------------------------------------------------------

    \65\ Independent Sector, The New Nonprofit Almanac & Desk 
Reference (2002).
---------------------------------------------------------------------------

    58. 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.'' \66\ Census Bureau data for 
2002 indicate that there were 87,525 local governmental jurisdictions 
in the United States.\67\ We estimate that, of this total, 84,377 
entities were ``small governmental jurisdictions.'' \68\ Thus, we 
estimate that most governmental jurisdictions are small.
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    \66\ 5 U.S.C. 601(5).
    \67\ U.S. Census Bureau, Statistical Abstract of the United 
States: 2006, Section 8, p. 272, Table 415.
    \68\ We assume that the villages, school districts, and special 
districts are small, and total 48,558. See U.S. Census Bureau, 
Statistical Abstract of the United States: 2006, section 8, p. 273, 
Table 417. For 2002, Census Bureau data indicate that the total 
number of county, municipal, and township go