Assessment and Collection of Regulatory Fees for Fiscal Year 2012, 46307-46338 [2012-18661]

Download as PDF Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations Federal Register. This final rule is not a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). List of Subjects in 40 CFR Part 180 Environmental protection, Agricultural commodities, Pesticides and pest. Dated: July 23, 2012. Lois Rossi, Director, Registration Division, Office of Pesticide Programs. Therefore, 40 CFR part 180 is amended as follows: PART 180—[AMENDED] I. Procedural Matters 1. The authority citation for part 180 continues to read as follows: ■ A. Final Paperwork Reduction Act Authority: 21 U.S.C. 321(q), 346a and 371. 2. In § 180.666, by removing the entries for ‘‘Oilseeds, group 20’’ and ‘‘Plum, prune’’ and adding in their place entries for ‘‘Oilseeds, group 20 (except cottonseed)’’ and ‘‘Plum, prune, dried’’ in the table to paragraph (a) to read as follows: ■ § 180.666 residues. (a) * * * Parts per million * * * * Oilseeds, group 20 (except cottonseed) .................................. * * * * Plum, prune, dried ...................... * * * * * * * * * 1. This Report and Order does not contain any new or modified information collection burden for small business concerns with fewer than 25 employees, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107–198, see 44 U.S.C. 3506(c)(4). B. Congressional Review Act Analysis Fluxapyroxad; tolerances for Commodity amended, provides for the annual assessment and collection of regulatory fees under sections 9(b)(2) and 9(b)(3), respectively, for annual ‘‘Mandatory Adjustments’’ and ‘‘Permitted Amendments’’ to the Schedule of Regulatory Fees. DATES: Effective September 4, 2012. FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing Director at (202) 418–0444. SUPPLEMENTARY INFORMATION: This is a summary of the Commission’s Report and Order (R&O), FCC 12–76, MD Docket No. 12–116, adopted on July 13, 2012 and released on July 19, 2012. 2. The Commission will send a copy of this Report and Order to Congress and the Government Accountability Office pursuant to the Congressional Review Act.1 C. Final Regulatory Flexibility Analysis * 3. As required by the Regulatory Flexibility Act of 1980 (‘‘RFA’’),2 the Commission has prepared a Final * Regulatory Flexibility Analysis 3.0 (‘‘FRFA’’) relating to this Report and Order. The FRFA is set forth in the * section entitled Final Regulatory Flexibility Analysis. 0.9 [FR Doc. 2012–18507 Filed 8–2–12; 8:45 am] II. Introduction and Summary BILLING CODE 6560–50–P 4. In this Report and Order, we conclude the process of assessing and collecting regulatory fees for Fiscal Year (‘‘FY’’) 2012 to collect $339,844,000 in regulatory fees for FY 2012. Section 9(a)(1) of the Communications Act of 1934, as amended (the ‘‘Act’’) directs the Commission to collect regulatory fees ‘‘to recover the costs of * * * enforcement activities, policy and rulemaking activities, user information FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 1 [MD Docket No. 12–116; FCC 12–76] Assessment and Collection of Regulatory Fees for Fiscal Year 2012 Federal Communications Commission. ACTION: Final rule. mstockstill on DSK4VPTVN1PROD with RULES AGENCY: The Commission revises its Schedule of Regulatory Fees to recover an amount of $339,844,000 that Congress has required the Commission to collect for fiscal year 2012. Section 9 of the Communications Act of 1934, as SUMMARY: VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 1 See 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is contained in Title II, 251, of the CWAAA; see Public Law 104–121, Title II, 251, 110 Stat. 868. 2 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601– 612, has been amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (‘‘SBREFA’’), Public Law 104–121, Title II, 110 Stat. 847 (1996). The SBREFA was enacted as Title II of the Contract With America Advancement Act of 1996 (‘‘CWAAA’’). PO 00000 Frm 00051 Fmt 4700 Sfmt 4700 46307 services, and international activities.’’ 3 Section 9(a)(2) stipulates that regulatory fees for the enumerated activities ‘‘shall be collected only if, and only in the total amounts, required in Appropriation Acts,’’ and must ‘‘be established in amounts that will result in collection, during each fiscal year, of any amount that can reasonably be expected to equal the amount appropriated’’ for the performance of the activities enumerated in section 9(a)(1) during that fiscal year. Since FY 2009, Congress has directed the Commission to assess and collect regulatory fees in an amount equal to the entire amount appropriated.4 Congress appropriated $339,844,000 for the Commission in FY 2012,5 and the regulatory fees established in this FY 2012 Report and Order are calculated so as to collect this entire amount.6 In this annual regulatory fee proceeding, we retain many of the current methods, policies, and procedures for collecting section 9 regulatory fees adopted by the Commission in prior years. Consistent with our established practice, we intend to collect these regulatory fees during a September 2012 filing window in order to collect the required amount by the end of our fiscal year.7 5. In this FY 2012 Report and Order, we address the following issues: (1) Incorporating 2010 Census data into our broadcast population data, (2) assessing a regulatory fee for each broadcasting facility operating either in an analog or digital mode (but not both) for Low Power, Class A, and TV Translators/ Boosters, (3) maintaining the FY 2012 Interstate Telecommunications Service Provider (ITSP) fee rate at the same level as in FY 2011, (4) using an online filing system for the filing of requests for a refund, waiver, fee reduction, or deferment of payment of an application or regulatory fee, (5) maintaining the Commercial Mobile Radio Service (‘‘CMRS’’) Messaging Service at the rate of $.08 per subscriber, and (6) the 3 47 U.S.C. 159(a). Appropriations Act of 2009, Public Law 111–8, 123 Stat. 524, 657 (2009). 5 Consolidated Appropriations Act of 2012, Public Law 112–74, Div. C, Title V (December 23, 2011). 6 In FY 2011, the Commission’s collection target goal was $335,794,000, and it collected $342.04 million through September 30, 2011. Any over collection amount is unavailable for obligation pursuant to Public Law 112–74 (HR 2055), Consolidated Appropriations Act of 2012, page 124. 7 The Commission also expects to release in the near future a Notice of Proposed Rulemaking that will propose to update our current cost allocation percentages and revise our cost allocation methodology. We expect to implement any changes that result from this rulemaking in FY 2013; they do not affect the fees set in this FY 2012 Report and Order. 4 Omnibus E:\FR\FM\03AUR1.SGM 03AUR1 46308 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations Commission will continue to promote greater use of technology (and less use of paper) in improving its regulatory fee notification and collection processes. The resulting FY 2012 Schedule of Regulatory Fees appears in Table B. III. Report and Order 6. In this FY 2012 Report and Order, we retain the same regulatory fee methodology used in FY 2011 and in prior fiscal years, with some adjustments to maintain the FY 2012 ITSP fee rate at the same level as in FY 2011. These adjustments are reflected in the ITSP fee rate, as well as in the fee rates of all remaining fee categories listed in Table B. 7. Since FY 1999, the Commission has allocated the amount appropriated by Congress across the various fee categories, and then divided these allocated amounts by the number of estimated payment units in each fee category to determine the unit fee.8 As in prior years, for cases involving small multiyear fees (e.g., licenses that are renewed over a multiyear term), we divided the allocated amounts by their respective estimated payment units, as well as by the term of the license (5-year or 10-year) to determine the unit fee, which was then rounded to be consistent with the requirements of section 9(b)(2)(B) of the Act. This process is illustrated in Table A and yields the FY 2012 regulatory fees shown in Table B. TABLE A—CALCULATION OF FY 2012 REVENUE REQUIREMENTS AND PRO-RATA FEES [Regulatory fees for the first ten categories below are collected by the Commission in advance to cover the term of the license and are submitted at the time the application is filed.] mstockstill on DSK4VPTVN1PROD with RULES Fee category 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 ........................... AM Class A4a ................. AM Class B4b ................. AM Class C4c ................. AM Class D4d ................. FM Classes A, B1 & C34e ............................ FM Classes B, C, C0, C1 & C24f ................... 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 1 ........................... UHF Markets 1–10 ......... UHF Markets 11–25 ....... UHF Markets 26–50 ....... UHF Markets 51–100 ..... UHF Remaining Markets UHF Construction Permits1 ........................... Broadcast Auxiliaries ..... LPTV/Translators/Boosters/Class A TV ........... CARS Stations ............... Cable TV Systems ......... Interstate Telecommunication Service Providers .......................... FY 2012 Payment units Pro-rated FY 2012 revenue requirement Computed new FY 2012 regulatory fee Rounded new FY 2012 regulatory fee Expected FY 2012 revenue 1,400 15,000 13,200 10 10 10 480,000 2,120,000 2,550,000 501,024 2,397,759 2,361,972 36 16 18 35 15 20 490,000 2,250,000 2,640,000 5 6,550 7,700 2,900 285 900 10 10 5 10 10 10 1,950 670,000 232,500 460,000 132,500 165,000 3,579 787,324 286,300 357,874 143,150 143,150 72 12 7 12 50 16 70 10 5 10 50 15 3,500 655,000 192,500 290,000 142,500 135,000 14,300 61 1,471 869 1,541 10 1 1 1 1 207,320 257,400 3,057,875 1,078,650 3,642,325 214,725 250,512 3,113,508 1,109,411 3,686,107 1.50 4,107 2,117 1,277 2,392 1.50 4,100 2,125 1,275 2,400 214,500 250,100 3,125,875 1,107,975 3,698,400 3,055 1 7,629,300 7,759,664 2,548 2,550 7,764,750 3,020 65 1 1 9,410,775 44,100 9,513,249 35787 3,150 551 3,150 550 9,513,000 35,750 120 125 1 1 101,925 166,250 84,000 178,937 700 1,431 700 1,425 84,000 178,125 4 22 25 38 60 137 1 1 1 1 1 1 2,010 1,692,500 1,772,550 1,457,100 1,183,000 774,700 3,579 1,761,769 1,836,977 1,512,153 1,255,187 798,915 895 80,080 73,479 39,793 20,920 5,831 895 80,075 73,475 39,800 20,925 5,825 3,580 1,761,650 1,836,875 1,512,400 1,255,500 798,025 2 109 106 135 225 247 1 1 1 1 1 1 12,200 3,915,450 3,525,650 3,016,800 2,933,350 864,600 11,650 3,854,222 3,456,927 2,958,639 2,868,448 847,308 5,825 35,360 32,613 21,916 12,749 3,430 5,825 35,350 32,625 21,925 12,750 3,425 11,650 3,853,150 3,458,250 2,959,875 2,868,750 845,975 7 24,800 1 1 32,750 268,500 23,975 286,300 3,425 12 3,425 10 23,975 248,000 3,732 375 62,200,000 1 1 1 1,424,765 173,900 58,962,000 1,431,498 178,937 59,228,227 384 477 0.9522 385 475 0.95 1,436,820 178,125 59,090,000 $39,700,000,000 1 148,125,000 148,875,000 0.003750 0.00375 148,875,000 8 In many instances, the regulatory fee amount is a flat fee per licensee or regulatee. In some instances, the fee amount represents a per-unit fee (such as for International Bearer Circuits), a per-unit VerDate Mar<15>2010 FY 2011 Revenue estimate Years 16:59 Aug 02, 2012 Jkt 226001 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 PO 00000 Frm 00052 Fmt 4700 Sfmt 4700 Provider (‘‘ITSP’’) fee). The payment unit is the measure upon which the fee is based, such as a licensee, regulatee, or subscriber fee. E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations 46309 TABLE A—CALCULATION OF FY 2012 REVENUE REQUIREMENTS AND PRO-RATA FEES—Continued [Regulatory fees for the first ten categories below are collected by the Commission in advance to cover the term of the license and are submitted at the time the application is filed.] Fee category FY 2012 Payment units CMRS Mobile Services (Cellular/Public Mobile) CMRS Messaging Services ............................. BRS2 .............................. LMDS ............................. Per 64 kbps Int’l Bearer Circuits Terrestrial (Common) & Satellite (Common & Non-Common) Submarine Cable Providers (see chart in Appendix C)3 .............. Earth Stations ................ Space Stations (Geostationary) ................... Space Stations (NonGeostationary ............. FY 2011 Revenue estimate Years Pro-rated FY 2012 revenue requirement Computed new FY 2012 regulatory fee Rounded new FY 2012 regulatory fee Expected FY 2012 revenue 313,000,000 1 50,660,000 52,156,612 0.1666 0.17 53,210,000 3,400,000 950 475 1 1 1 336,000 523,900 161,200 272,000 451,250 225,625 0.0800 475 475 0.080 475 475 272,000 451,250 225,625 4,452,315 1 1,136,518 1,153,787 .259 .26 1,157,602 38.313 3,250 1 1 8,080,734 875,875 8,150,949 894,686 212,749 275 212,750 275 8,150,984 893,750 87 1 11,429,625 11,559,346 132,866 132,875 11,560,125 6 1 850,500 858,899 143,150 143,150 858,900 ****** Total Estimated Revenue to be Collected ........ .............................. ................ 336,599,047 339,840,896 ........................ ........................ 340,568,811 ****** Total Revenue Requirement ........ .............................. ................ 335,794,000 339,844,000 ........................ ........................ 339,844,000 .............................. ................ 805,048 (3,104) ........................ ........................ 724,811 Difference 1 The FM Construction Permit revenues and the VHF and UHF Construction Permit revenues were adjusted to set the regulatory fee to an amount no higher than the lowest licensed fee for that class of service. The reductions in the FM Construction Permit revenues are offset by increases in the revenue totals for FM radio stations. Similarly, reductions in the VHF and UHF Construction Permit revenues are offset by increases in the revenue totals for VHF and UHF television stations, respectively. 2 MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission’s Rules to Facilitate the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150–2162 and 2500– 2690 MHz Bands, Report & Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, para. 6 (2004). 3 The chart at the end of Attachment C lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from the adoption of the following proceedings: Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order (MD Docket No. 08–65, RM–11312), released March 24, 2009; and Assessment and Collection of Regulatory Fees for Fiscal Year 2009 and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Notice of Proposed Rulemaking and Order (MD Docket No. 09–65, MD Docket No. 08–65), released on May 14, 2009. 4 The fee amounts listed in the column entitled ‘‘Rounded New FY 2012 Regulatory Fee’’ constitute a weighted average media regulatory fee by class of service. The actual FY 2012 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table B. TABLE B—FY 2012 SCHEDULE OF REGULATORY FEES [Regulatory fees for the first eleven categories below are collected by the Commission in advance to cover the term of the license and are submitted at the time the application is filed.] Annual regulatory fee (U.S. $’s) mstockstill on DSK4VPTVN1PROD 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 27) ...................................................................... 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: VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 PO 00000 Frm 00053 Fmt 4700 Sfmt 4700 E:\FR\FM\03AUR1.SGM 03AUR1 35 20 70 10 50 5 15 15 10 15 1.50 .17 .08 475 475 550 700 46310 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations TABLE B—FY 2012 SCHEDULE OF REGULATORY FEES—Continued [Regulatory fees for the first eleven categories below are collected by the Commission in advance to cover the term of the license and are submitted at the time the application is filed.] Annual regulatory fee (U.S. $’s) Fee category 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—Terrestrial/Satellites (per 64KB circuit) ......................................................................................... International Bearer Circuits—Submarine Cable .......................................................................................................................... 80,075 73,475 39,800 20,925 5,825 5,825 35,350 32,625 21,925 12,750 3,425 3,425 1,425 895 385 10 475 .95 .00375 275 132,875 143,150 .26 See Table Below FY 2012 SCHEDULE OF REGULATORY FEES (CONTINUED) FY 2012 Radio station regulatory fees Population served AM Class A < = 25,000 ................................................ 25,001–75,000 ......................................... 75,001–150,000 ....................................... 150,001–500,000 ..................................... 500,001–1,200,000 .................................. 1,200,001–3,000,00 ................................. >3,000,000 ............................................... AM Class B $725 1,475 2,200 3,300 4,775 7,350 8,825 AM Class C $600 1,225 1,525 2,600 3,975 6,100 7,325 AM Class D $550 850 1,125 1,675 2,800 4,200 5,325 FM Classes A, B1 & C3 FM Classes B, C, C0, C1 & C2 $700 1,425 1,950 3,025 4,800 7,800 9,950 $875 1,550 2,875 3,750 5,525 8,850 11,500 $625 950 1,600 1,900 3,175 5,075 6,350 FY 2012 SCHEDULE OF REGULATORY FEES [International bearer circuits—submarine cable] Submarine cable systems (capacity as of December 31, 2011) Fee amount mstockstill on DSK4VPTVN1PROD with RULES <2.5 Gbps .......................................................................... 2.5 Gbps or greater, but less than 5 Gbps ....................... 5 Gbps or greater, but less than 10 Gbps ........................ 10 Gbps or greater, but less than 20 Gbps ...................... 20 Gbps or greater ............................................................ 8. We then calculated the number of payment units subject to the fee. In some instances, Commission licensee databases were used in calculating payment units; in other instances, actual prior year payment records and/or industry and trade association 18:13 Aug 02, 2012 Jkt 226001 $13,300 26,600 53,200 106,375 212,750 FCC, FCC, FCC, FCC, FCC, International, International, International, International, International, projections were used (see Table C).9 Where appropriate, we adjusted and rounded our final estimates to take into account factors that could affect the number of units for which a fee is 9 See VerDate Mar<15>2010 Address PO 00000 Table C for a list of databases we consulted. Frm 00054 Fmt 4700 Sfmt 4700 P.O. P.O. P.O. P.O. P.O. Box Box Box Box Box 979084, 979084, 979084, 979084, 979084, St. St. St. St. St. Louis, Louis, Louis, Louis, Louis, MO MO MO MO MO 63197–9000. 63197–9000. 63197–9000. 63197–9000. 63197–9000. paid.10 Such factors include waivers and exemptions filed in FYs 2011 and 2012, as well as fluctuations in the number of licenses or station operators due to economic, technical, or other 10 The use of ‘‘regulatee’’ in this Order refers to any payor of regulatory fees. E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations reasons. Our estimated FY 2012 payment units, therefore, were adjusted to account for the variable factors relevant to each fee category. The fee rate may also have been rounded or adjusted slightly to reflect these variables. TABLE C—Source of Payment Unit Estimates for FY 2012 In order to calculate individual service fees for FY 2012, we adjusted FY 2011 payment units for each service to more accurately reflect expected FY 2012 payment liabilities. We obtained our updated estimates through a variety of means. For example, we used Commission licensee databases, actual prior year payment records and industry and trade association projections when available. The databases we consulted include our Universal Licensing System (‘‘ULS’’), International Bureau Filing System (‘‘IBFS’’), Consolidated Database System (‘‘CDBS’’) and Cable Operations and Licensing System (‘‘COALS’’), as well as reports generated within the Commission such as the Wireline Competition Bureau’s Trends in Telephone Service and the Wireless Telecommunications Bureau’s Numbering Resource Utilization Forecast. We sought verification for these estimates from multiple sources and, in all cases, we compared FY 2012 estimates with actual FY 2011 payment units to ensure that our revised estimates were reasonable. Where appropriate, we adjusted and/or 46311 rounded our final estimates to take into consideration the fact that certain variables that impact on the number of payment units cannot yet be estimated with sufficient accuracy. These include an unknown number of waivers and/or exemptions that may occur in FY 2012 and the fact that, in many services, the number of actual licensees or station operators fluctuates from time to time due to economic, technical, or other reasons. When we note, for example, that our estimated FY 2012 payment units are based on FY 2011 actual payment units, it does not necessarily mean that our FY 2012 projection is exactly the same number as in FY 2011. We have either rounded the FY 2012 number or adjusted it slightly to account for these variables. TABLE C—SOURCES OF PAYMENT UNIT ESTIMATES FOR FY 2012 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. Based on Wireless Telecommunications Bureau (‘‘WTB’’) projections of new applications and renewals taking into consideration existing Commission licensee databases. Aviation (Aircraft) and Marine (Ship) estimates have been adjusted to take into consideration the licensing of portions of these services on a voluntary basis. Based on WTB projection reports, and FY 11 payment data. Based on WTB reports, and FY 11 payment data. Based on CDBS data, adjusted for exemptions, and actual FY 2011 payment units. Based on CDBS data, adjusted for exemptions, and actual FY 2011 payment units. Based on CDBS data, adjusted for exemptions, and actual FY 2011 payment units. Based on CDBS data, adjusted for exemptions, and actual FY 2011 payment units. Based on actual FY 2011 payment units. Based on WTB reports and actual FY 2011 payment units. Based on WTB reports and actual FY 2011 payment units. Based on data from Media Bureau’s COALS database and actual FY 2011 payment units. Based on publicly available data sources for estimated subscriber counts and actual FY 2011 payment units. The Wireline Competition Bureau projected amount of calendar year 2011 revenues that will be reported on 2012 FCC Form 499–A worksheets due in April, 2012. Some of the projections are based on FCC Form 499–Q data for the four quarters of calendar year 2011. Based on International Bureau (‘‘IB’’) licensing data and actual FY 2011 payment units. Based on IB data reports and actual FY 2011 payment units. Based on IB reports and submissions by licensees. Based on IB license information. CMRS Cellular/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) ..................................................................... LMDS ........................................................................................................ Cable Television Relay Service (‘‘CARS’’) Stations ................................ Cable Television System Subscribers ...................................................... Interstate Telecommunication Service Providers ..................................... Earth Stations ........................................................................................... mstockstill on DSK4VPTVN1PROD with RULES Space Stations (GSOs & NGSOs) ........................................................... International Bearer Circuits ..................................................................... Submarine Cable Licenses ...................................................................... 9. On May 4, 2012, we released the FY 2012 Notice of Proposed Rulemaking 11 to seek comment on the proposed FY 2012 regulatory fees. We received two comments and no reply comments (see Table D). We address the issues raised in our FY 2012 Notice of Proposed Rulemaking and the comments received below. 11 See Assessment and Collection of Regulatory Fees for Fiscal Year 2012, Notice of Proposed Rulemaking, 77 FR 29275 (May 17, 2012) (‘‘FY 2012 Regulatory Fees NPRM’’). VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 TABLE D—LIST OF COMMENTERS Abbreviated name Commenter Critical Messaging Association The United States Telecom Association. ‘‘CMA’’. ‘‘USTA’’. A. Regulatory Fee Obligations for AM and FM Radio Stations 10. The fee methodology for AM and FM radio stations is based on a number PO 00000 Frm 00055 Fmt 4700 Sfmt 4700 of factors, including facility attributes (e.g. power, channel/frequency) and the population served by each station. The calculation of the population served is determined by applying current United States Census Bureau data to the station’s technical and engineering data, as detailed in Table E. In FY 2012, the Commission will incorporate the results of the 2010 Census data into our broadcast population data, which could precipitate a change in population count for some radio stations. These E:\FR\FM\03AUR1.SGM 03AUR1 46312 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations population counts, along with the station’s class and type of service, are the basis for determining regulatory fees. We sought comment, but did not receive any on this issue. We conclude that the 2010 census data should be incorporated into our broadcast population data when determining regulatory fees. TABLE E—FACTORS, MEASUREMENTS, AND CALCULATIONS THAT DETERMINE STATION SIGNAL CONTOURS AND ASSOCIATED POPULATION COVERAGES AM Stations For stations with nondirectional daytime antennas, the theoretical radiation was used at all azimuths. For stations with directional daytime antennas, specific information on each day tower, including field ratio, phasing, spacing and orientation was retrieved, as well as the theoretical pattern root-mean-square of the radiation in all directions in the horizontal plane (‘‘RMS’’) figure milliVolt per meter (mV/m) @ 1 km for the antenna system. The standard, or modified standard if pertinent, horizontal plane radiation pattern was calculated using techniques and methods specified in §§ 73.150 and 73.152 of the Commission’s rules.12Radiation 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 R3.13 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 was used to form a geographical polygon. Population counting was accomplished by determining which 2010 block centroids were contained in the polygon. (A block centroid is the center point of a small area containing population as computed by the U.S. Census Bureau.) The sum of the population figures for all enclosed blocks represents the total population for the predicted principal community coverage area. mstockstill on DSK4VPTVN1PROD with RULES FM Stations The greater of the horizontal or vertical effective radiated power (‘‘ERP’’) (kW) and respective height above average terrain (‘‘HAAT’’) (m) combination was used. Where the antenna height above mean sea level (‘‘HAMSL’’) was available, it was used in lieu of the average HAAT figure to calculate specific HAAT figures for each of 360 radials under study. Any available directional pattern information was applied as well, to produce a radial-specific ERP figure. The HAAT and ERP figures were used in 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.14 The resulting distance to principal community contours were used to form a geographical polygon. Population counting was accomplished by determining which 2010 block centroids were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted principal community coverage area. B. Regulatory Fee Obligations for Digital Low Power, Class A, and TV Translators/Boosters 11. The digital transition to fullservice television stations was completed on June 12, 2009, but Low Power, Class A, and TV Translators/ Boosters are not required to make the digital transition until September 1, 2015. Historically, we have only considered the digital transition in the context of regulatory fees applicable to full-service television stations. Consequently, the ‘‘digital only’’ exemption does not apply to Low Power, Class A, and TV Translator/ Booster facilities. Because the digital transition in the Low Power, Class A, and TV Translator/Booster facilities is still voluntary, these facilities may transition from analog to digital service at varying times prior to September 1, 2015. During this period of transition, licensees of Low Power, Class A, and TV Translator/Booster facilities may be operating in analog mode, in digital mode, or in an analog and digital simulcast mode. We sought comment on how this should be reflected in the regulatory fees paid by licensees of these facilities, but we did not receive any comments in response. In the absence of comment, we conclude that 12 47 CFR 73.150 and 73.152. Map of Estimated Effective Ground Conductivity in the United States, 47 CFR 73.190 Figure R3. 14 47 CFR 73.313. 13 See VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 a single fee will be assessed for each facility regardless of whether it transmits in analog or digital mode, digital mode, or simulcasting in both analog and digital modes. As more of these facilities convert to digital mode, the Commission will revisit how regulatory fees will be assessed. C. Regulatory Fee Obligations of Interstate Telecommunications Service Providers 12. In our FY 2011 Report and Order, we assessed the Interstate Telecommunications Service Provider (‘‘ITSP’’) industry a regulatory fee of $.00375 per revenue dollar. This fee reflected the Commission’s decision to limit the increase in ITSP regulatory fees in light of the continuing decrease in the revenue base upon which ITSP regulatory fees are calculated, and pending a more comprehensive rebalancing of ITSP fees as part of our reexamination of the factual and methodological predicates of our regulatory fee program. This reexamination will commence shortly. For that reason we proposed in our FY 2012 Notice of Proposed Rulemaking to assess FY 2012 ITSP regulatory fees at the same fee rate as in FY 2011, and to allocate the remaining revenue requirement across all other fee categories.15 15 See FY 2012 Regulatory Fees NPRM, at para. 17. PO 00000 Frm 00056 Fmt 4700 Sfmt 4700 13. We received one comment from the United States Telecom Association (‘‘USTA’’). USTA supports the Commission’s effort to rebalance its regulatory fee structure, including updating the calculation of full-time equivalents (‘‘FTEs’’) and adjusting the way costs are currently allocated.16 USTA also contends that today’s separate communication platforms, e.g. wireless, cable, and wireline, are capable of providing similar communication services, and it is therefore critical for the Commission to establish fee parity among the providers utilizing these platforms.17 14. We have initiated a separate proceeding in which we are requesting comment on these and other issues.18 Because we expect to use the comments that are received and other data in setting next year’s regulatory fees, we will adopt our proposal to maintain the FY 2012 ITSP fee rate in the interim at the FY 2011 rate of .00375. D. Improving Public Information on Waiver Requests and Decisions 15. In our FY 2012 Notice of Proposed Rulemaking, we sought comment on requiring regulatees filing a request for a refund, waiver, fee reduction, or 16 United States Telecom Association, at page 1. at page 1–2. 18 In the Matter of Procedures for Assessment and Collection of Regulatory Fees; Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Notice of Proposed Rulemaking, FCC 12–77, MD Docket No. 12–201 (released on July 17, 2012). 17 USTA E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations deferment of payment of an application or regulatory fee to use an online filing system rather than submitting their requests in hardcopy format.19 We believe that an online filing system will complement other existing online Commission systems already in place, such as the Broadcast Radio and Television Electronic Filing System (more commonly referred to as CDBS), the Cable Operations and Licensing System (COALS), and Consumer Complaint Forms. The resulting fee waiver filing system will include such documents as the filed request, any relevant supporting documentation, and the resulting decision. We also proposed to apply the provisions of section 0.459 to requests that electronically-filed material be withheld from public inspection.20 16. We received no comments on this issue. We will therefore adopt our proposal and require that all requests for refunds, waivers, fee reductions, or deferments of payment be filed using an online system. We direct the Office of Managing Director to take the necessary steps to assist regulatees in transitioning to electronic filing. E. Commercial Mobile Radio Services (‘‘CMRS’’) Messaging Service 17. In response to our FY 2012 Notice of Proposed Rulemaking, the Commission received a comment from the Critical Messaging Association (‘‘CMA’’) regarding the CMRS messaging service regulatory fee category. CMA contends that even though the Commission has not acted on its FY 2008 Further Notice of Proposed Rulemaking to review, among other things, the CMRS messaging service fee category, the Commission should maintain the CMRS messaging fee at $.08 per subscriber as a minimum appropriate action to take in FY 2012.21 As stated in paragraph 11, we anticipate revising our regulatory fee program in time to calculate FY 2013 fees. For that reason, and because we agree with CMA that the prevailing circumstances in FY 2003 still exist today,22 we find it 19 See FY 2012 Regulatory Fees NPRM at para. 18. section 0.457(a)(2) through (g) describe, inter alia, how confidential material should be submitted electronically, what showings must be made to justify withholding electronicallysubmitted information from public inspection, and how the Commission will resolve confidentiality requests. 21 The Critical Messaging Association at page 1. 22 Beginning in FY 2003, the Commission maintained the paging regulatory fee rate at $.08 per subscriber, the same level as in FY 2002, and it has maintained this level of $.08 per subscriber for all subsequent years. See Assessment and Collection of Regulatory Fees for Fiscal Year 2003, Report and Order, 18 FCC Rcd 15988 paras. 21–22 (2003) (FY 2003 Report and Order). mstockstill on DSK4VPTVN1PROD with RULES 20 Specifically, VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 appropriate that the FY 2012 CMRS Messaging regulatory fee remain at a rate of $0.08 per subscriber. F. Administrative and Operational Issues 18. In FY 2009, the Commission implemented several procedural changes that simplified the payment and reconciliation processes of regulatory fees. In FY 2012, the Commission will continue to promote greater use of technology (and less use of paper) in improving our regulatory fee notification and collection processes. We sought comment on how we might do this, but we received no specific comment in response. Accordingly, the Commission will continue its own efforts to promote greater efficiency in its regulatory fee notification and collection processes, subject to appropriate notice and comment. 19. In FY 2009, we instituted a mandatory filing requirement using the Commission’s electronic filing and payment system (also known as ‘‘Fee Filer’’).23 Regulatees filing their annual regulatory fee payments were required to begin the process by entering the Commission’s Fee Filer system with a valid FCC Registration Number (‘‘FRN’’) and password.24 This change, which required regulatees to use Fee Filer for the filing of annual regulatory fees, not the payment of such regulatory fees 25 was beneficial to both licensees and to the Commission. For licensees, the mandatory use of Fee Filer eliminates the need to manually complete and submit a hardcopy Form 159, and for the Commission, the data in electronic format makes it much easier to process payments efficiently and effectively. We sought comment on how to improve the mandatory use of Fee Filer for filing annual regulatory fees. We received no specific comments or reply comments on this issue. Accordingly, we will continue our own efforts to refine our fee filing and payment procedures, subject to appropriate notice and comment. IV. Fee Collection Procedures 20. Included below are procedural items as well as our current payment and collection methods which we have revised over the past several years to 23 See Assessment and Collection of Regulatory Fees for Fiscal Year FY 2009, Report and Order 24 FCC Rcd 10301 at paras. 20 and 21 (‘‘FY 2009 Report and Order’’). 24 In order to do this, licensees must have a current and valid FRN address on file in the Commission’s Registration System (CORES). 25 Regulatees have different options when making a payment, including credit card, check, and wire transfer. PO 00000 Frm 00057 Fmt 4700 Sfmt 4700 46313 expedite the processing of regulatory fee payments. We do not propose changes to these procedures. Rather, we include them here as a useful way of reminding regulatory fee payers and the public about these aspects of the annual regulatory fee collection process. A. Public Notices and Fact Sheets 21. 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 relevant regulatory fee payment procedures. We will continue to post this information on https:// transition.fcc.gov/fees/regfees.html, rather than mailing it to regulatees. B. Pre-Bill Notification and Collection of Regulatory Fees 22. In prior years, the Commission mailed pre-bills via surface mail to regulatees in select regulatory fee categories: ITSPs, Geostationary (‘‘GSO’’) and Non-Geostationary (‘‘NGSO’’) satellite space station licensees,26 holders of Cable Television Relay Service (‘‘CARS’’) licenses, and Earth Station licensees.27 The remaining regulatees did not receive pre-bills. In our FY 2009 Report and Order, the Commission decided to make the information contained in these pre-bills viewable in Fee Filer, rather than mailing pre-bills to licensees via surface mail.28 We continued this practice in FY 2010 and FY 2011 by placing the prebill information on Fee Filer, where it could be accessed by regulatees through the Commission’s Web site. Regulatees can also look to the Commission’s Web site for information on upcoming events and deadlines relating to regulatory fees. C. Assessment Notifications 1. Media Services Licensees 23. Beginning in FY 2003, we sent fee assessment notifications via surface mail to media services entities on a per26 Geostationary orbit space station (‘‘GSO’’) licensees received regulatory fee pre-bills for satellites that (1) were licensed by the Commission and operational on or before October 1 of the respective fiscal year; and (2) were not co-located with and technically identical to another operational satellite on that date (i.e., were not functioning as a spare satellite). Non-geostationary orbit space station (‘‘NGSO’’) licensees received regulatory fee pre-bills for systems that were licensed by the Commission and operational on or before October 1 of the respective fiscal year. 27 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. 28 See FY 2009 Report and Order at para. 24, 26. E:\FR\FM\03AUR1.SGM 03AUR1 46314 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations facility basis.29 These 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 to be more electronic and paperless.30 In our FY 2010 Notice of Proposed Rulemaking, we sought comment to discontinue mailing the media notifications beginning in FY 2011, relying instead on information on the Commission’s Web site and the use of the Commission-authorized Web site at www.fccfees.com.31 We received no comments or reply comments in FY 2010, and beginning in FY 2011, we discontinued the mailing of fee assessment notifications via surface mail to media service entities. In FY 2012, we will continue the practice of not mailing hardcopy notification assessment letters to media licensees. mstockstill on DSK4VPTVN1PROD with RULES 2. CMRS Cellular and Mobile Services Assessments 24. We will continue to follow our current procedures for conveying CMRS subscriber counts to providers. We will mail an initial assessment letter to Commercial Mobile Radio Service (CMRS) providers using data from the Numbering Resource Utilization Forecast (‘‘NRUF’’) report that is based on ‘‘assigned’’ number counts that have been adjusted for porting to net Type 0 ports (‘‘in’’ and ‘‘out’’).32 The letter will include a listing of the carrier’s Operating Company Numbers (‘‘OCNs’’) upon which the assessment is based.33 The letters will not include OCNs with their respective assigned number counts, but rather, an aggregate total of assigned numbers for each carrier. 25. A carrier wishing to revise its subscriber count can do so by accessing Fee Filer after receiving its initial CMRS assessment letter. Providers should follow the prompts in Fee Filer to 29 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. 30 Those refinements include providing licensees with a Commission-authorized Web site where they can update or correct any information concerning their facilities, and amend their fee-exempt status, if need be. The notifications also provide licensees with a telephone number to call in the event that they need customer assistance. 31 See Assessment and Collection of Regulatory Fees for Fiscal Year 2010, Report and Order, 25 FCC Rcd 9278 at para. 42 (2010) (‘‘FY 2010 Report and Order’’). 32 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 on Reconsideration, 20 FCC Rcd 12259, 12264, paras. 38–44 (2005). 33 Id. VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 record their subscriber revisions, along with any supporting documentation.34 The Commission will then review the revised count and supporting documentation and either approve or disapprove the submission in Fee Filer. If the submission is disapproved, the Commission will contact the provider to afford the provider an opportunity to discuss its revised subscriber count and/ or provide additional supporting documentation. If we receive no response or correction to the initial assessment letter, or we do not reverse our initial disapproval of the provider’s revised count submission, we expect the fee payment to be based on the number of subscribers listed on the initial assessment letter. Once the timeframe for revision has passed, the subscriber counts are final and are the basis upon which CMRS regulatory fees are expected to be paid. Providers can also view their final subscriber counts online in Fee Filer. A final CMRS assessment letter will not be mailed out. 26. Because some carriers do not file the NRUF report, they may not receive an initial assessment letter. In these instances, the carriers should compute their fee payment using the standard methodology 35 that is currently in place for CMRS Wireless services (e.g., compute their subscriber counts as of December 31, 2011), and submit their fee payment accordingly. Whether a carrier receives an assessment letter or not, the Commission reserves the right to audit the number of subscribers for which regulatory fees are paid. In the event that the Commission determines that the number of subscribers paid is inaccurate, the Commission will bill the carrier for the difference between what was paid and what should have been paid. calculating and paying their regulatory fees. 2. CMRS Cellular and Mobile Providers 28. In FY 2006, we streamlined the CMRS payment process by eliminating the requirement for CMRS providers to identify their individual call signs when making their regulatory fee payment, instead allowing CMRS providers to pay their regulatory fees only at the aggregate subscriber level without having to identify their various call signs.36 We will continue this practice in FY 2012. In FY 2007, we consolidated the CMRS cellular and CMRS mobile fee categories into one fee category with a single fee code, thereby eliminating the requirement for CMRS providers to separate their subscriber counts into CMRS cellular and CMRS mobile fee categories during the regulatory fee payment process. This consolidation of fee categories enabled the Commission to process payments more quickly and accurately. For FY 2012, we will continue this practice of combining the CMRS cellular and CMRS mobile fee categories into one regulatory fee category. D. Streamlined Regulatory Fee Payment Process 3. Interstate Telecommunications Service Providers 29. 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 worksheet to the nearest dollar. This revision enabled the Commission to process the ITSP regulatory fee payments more quickly because rounding was performed in a consistent manner, thereby eliminating processing issues. For FY 2012, we will continue to round lines 14 and 16 when calculating the FY 2012 ITSP fee obligation. In addition, we will continue the practice of not mailing out Form 159–W via surface mail. 1. Cable Television E. Payment of Regulatory Fees 27. The Commission will continue to permit cable television operators to base their regulatory fee payment on their company’s aggregate year-end subscriber count, rather than requiring them to report cable subscriber counts on a per community unit identifier (‘‘CUID’’) basis. This significantly lessens the cable operators’ burden in 1. Lock Box Bank 30. All lock box payments to the Commission for FY 2012 will be processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC. During the fee season for collecting FY 2012 regulatory fees, regulatees can pay their fees by credit card through Pay.gov,37 by check, money order, or 34 In the supporting documentation, the provider will need to state a reason for the change, such as a purchase or sale of a subsidiary, the date of the transaction, and any other pertinent information that will help to justify a reason for the change. 35 See, e.g., Federal Communications Commission, Regulatory Fees Fact Sheet: What You Owe—Commercial Wireless Services for FY 2011 at 1 (rel. September 2011). 36 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). 37 In accordance with U.S. Treasury Financial Manual Announcement No. A–2012–02, the U.S. Treasury will reject credit card transactions greater than $49,999.99 from a single credit card in a single day. This includes online transactions conducted PO 00000 Frm 00058 Fmt 4700 Sfmt 4700 E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations debit card,38 or by placing their credit card number on Form 159–E (Remittance Advice form) and mailing their fee and accompanying Form 159– E to the following address: Federal Communications Commission, Regulatory Fees, P.O. Box 979084, St. Louis, MO 63197–9000. Additional payment options and instructions are posted at https://transition.fcc.gov/fees/ regfees.html. 2. Receiving Bank for Wire Payments 31. The receiving bank for all wire payments is the Federal Reserve Bank, New York, New York (TREAS NYC). When making a wire transfer, regulatees must fax a copy of their Fee Filer generated Form 159–E to U.S. Bank, St. Louis, Missouri at (314) 418–4232 at least one hour before initiating the wire transfer (but on the same business day) so as not to delay crediting their account. Regulatees should discuss arrangements (including bank closing schedules) with their bankers several days before they plan to make the wire transfer to allow sufficient time for the transfer to be initiated and completed before the deadline. Complete instructions for making wire payments are posted at https://transition.fcc.gov/ fees/wiretran.html. 3. De Minimis Regulatory Fees 32. Regulatees whose total FY 2012 regulatory fee liability, including all categories of fees for which payment is due, is less than $10 are exempted from payment of FY 2012 regulatory fees. mstockstill on DSK4VPTVN1PROD with RULES 4. Standard Fee Calculations and Payment Dates 33. The Commission will accept fee payments made in advance of the window for the payment of regulatory fees. The responsibility for payment of fees by service category is as follows: • Media Services: Regulatory fees must be paid for initial construction permits that were granted on or before via Pay.gov, transactions conducted via other channels, and direct-over-the counter transactions made at a U.S. Government facility. Individual credit card transactions larger than the $49,999.99 limit may not be split into multiple transactions using the same credit card, whether or not the split transactions are assigned to multiple days. Splitting a transaction violates card network and Financial Management Service (FMS) rules. However, credit card transactions exceeding the daily limit may be split between two or more different credit cards. Other alternatives for transactions exceeding the $49,999.99 credit card limit include payment by check, electronic debit from your bank account, and wire transfer. 38 In accordance with U.S. Treasury Financial Manual Announcement No. A–2012–02, the maximum dollar-value limit for debit card transactions will be eliminated. It should also be noted that only Visa and MasterCard branded debit cards are accepted by Pay.gov. VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 46315 October 1, 2011 for AM/FM radio stations, VHF/UHF full service television stations, and satellite television stations. Regulatory fees must be paid for all broadcast facility licenses granted on or before October 1, 2011. In instances where a permit or license is transferred or assigned after October 1, 2011, 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, 2011. In instances where a permit or license is transferred or assigned after October 1, 2011, responsibility for payment rests with the holder of the permit or license as of the fee due date. We note that audio bridging service providers are included in this category.39 • Wireless Services: CMRS cellular, mobile, and messaging services (fees based on number of subscribers or telephone number count): Regulatory fees must be paid for authorizations that were granted on or before October 1, 2011. The number of subscribers, units, or telephone numbers on December 31, 2011 will be used as the basis from which to calculate the fee payment. In instances where a permit or license is transferred or assigned after October 1, 2011, responsibility for payment rests with the holder of the permit or license as of the fee due date. • The first eleven regulatory fee categories in our Schedule of Regulatory Fees (see Table B) pay ‘‘small multi-year wireless regulatory fees.’’ Entities pay these regulatory fees in advance for the entire amount of their five-year or tenyear term of initial license, and only pay regulatory fees again when the license is renewed or a new license is obtained. We include these fee categories in our Schedule of Regulatory Fees to publicize our estimates of the number of ‘‘small multi-year wireless’’ licenses that will be renewed or newly obtained in FY 2012. • 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, 2011.40 Regulatory fees also must be paid for CARS licenses that were granted on or before October 1, 2011. In instances where a permit or license is transferred or assigned after October 1, 2011, responsibility for payment rests with the holder of the permit or license as of the fee due date. • 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, 2011. In instances where a permit or license is transferred or assigned after October 1, 2011, responsibility for payment rests with the holder of the permit or license as of the fee due date. • International Services: Submarine Cable Systems: Regulatory fees for submarine cable systems are to be paid on a per cable landing license basis based on circuit capacity as of December 31, 2011. In instances where a license is transferred or assigned after October 1, 2011, responsibility for payment rests with the holder of the license as of the fee due date. For regulatory fee purposes, the allocation in FY 2012 will remain at 87.6 percent for submarine cable and 12.4 percent for satellite/ terrestrial facilities. • International Services: Terrestrial and Satellite Services: Finally, regulatory fees for International Bearer Circuits are to be paid by facilities-based common carriers that have active (used or leased) international bearer circuits as of December 31, 2011 in any terrestrial or satellite transmission facility for the provision of service to an end user or resale carrier, which includes active circuits to themselves or to their affiliates. In addition, noncommon carrier satellite operators must pay a fee for each circuit sold or leased to any customer, including themselves or their affiliates, other than an international common carrier authorized by the Commission to provide U.S. international common carrier services. ‘‘Active circuits’’ for these purposes include backup and redundant circuits as of December 31, 2011. Whether circuits are used 39 Audio bridging services are toll teleconferencing services, and audio bridging service providers are required to contribute directly to the Universal Service Fund based on revenues from these services. On June 30, 2008, the Commission released the InterCall Order, in which the Commission stated that InterCall, Inc. and all similarly situated audio bridging service providers are required to contribute directly to the Universal Service Fund. See Request for Review by InterCall, Inc. of Decision of Universal Service Administrator, CC Docket No. 96–45, Order, 23 FCC Rcd 10731 (2008) (‘‘InterCall Order’’). 40 Cable television system operators should compute their number of basic subscribers as follows: Number of single family dwellings + number of individual households in multiple dwelling unit (apartments, condominiums, mobile home parks, etc.) paying at the basic subscriber rate + bulk rate customers + courtesy and free service. Note: Bulk-Rate Customers = Total annual bulk-rate charge divided by basic annual subscription rate for individual households. Operators may base their count on ‘‘a typical day in the last full week’’ of December 2011, rather than on a count as of December 31, 2011. PO 00000 Frm 00059 Fmt 4700 Sfmt 4700 E:\FR\FM\03AUR1.SGM 03AUR1 46316 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations specifically for voice or data is not relevant for purposes of determining that they are active circuits. In instances where a permit or license is transferred or assigned after October 1, 2011, responsibility for payment rests with the holder of the permit or license as of the fee due date. For regulatory fee purposes, the allocation in FY 2012 will remain at 87.6 percent for submarine cable and 12.4 percent for satellite/ terrestrial facilities. F. Enforcement 34. To be considered timely, regulatory fee payments must be received and stamped at the lockbox bank by the due date of regulatory fees. Section 9(c) of the Act requires us to impose a late payment penalty of 25 percent of the unpaid amount to be assessed on the first day following the deadline date for filing of these fees.41 Failure to pay regulatory fees and/or any late penalty will subject regulatees to sanctions, including those set forth in § 1.1910 of the Commission’s Rules 42 and in the Debt Collection Improvement Act of 1996 (‘‘DCIA’’).43 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 § 1.1940(d) of the Commission’s Rules.44 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 payor will be given credit for the amount paid, but if it is later determined that the fee paid is incorrect or not timely paid, then the 25 percent late charge penalty (and other charges and/or sanctions, as appropriate) will be assessed on the portion that is not paid in a timely manner. 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.45 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). TABLE F—FY 2011 SCHEDULE OF REGULATORY FEES [Regulatory fees for the first eleven fee categories below 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 DSK4VPTVN1PROD 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 .................................................................................................................................................... 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) ......................................................................................... 41 47 U.S.C. 159(c). 47 CFR 1.1910. 43 Delinquent debt owed to the Commission triggers application of the ‘‘red light rule’’ which requires offsets or holds on pending disbursements. 42 See VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 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 PO 00000 Frm 00060 Fmt 4700 Sfmt 4700 40 25 65 10 50 5 20 20 10 15 1.42 .17 .08 310 310 490 675 84,625 68,175 40,475 22,750 6,100 6,100 34,650 32,950 20,950 12,325 3,275 3,275 1,250 670 395 10 370 .93 .00375 1, subpart O, Collection of Claims Owed the United States. 44 47 CFR 1.1940(d). 45 See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910. E:\FR\FM\03AUR1.SGM 03AUR1 46317 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations TABLE F—FY 2011 SCHEDULE OF REGULATORY FEES—Continued [Regulatory fees for the first eleven fee categories below are collected by the Commission in advance to cover the term of the license and are submitted along with the application at the time the application is filed.] Annual regulatory fee (U.S. $’s) Fee category Earth Stations (47 CFR part 25) ................................................................................................................................................... Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational station) (47 CFR part 100) ......................................................................................................................................................... Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) ............................................................... International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) ......................................................................................... International Bearer Circuits—Submarine Cable .......................................................................................................................... 245 131,375 141,750 .35 See Table Below FY 2011 SCHEDULE OF REGULATORY FEES (CONTINUED) FY 2011 Radio Station Regulatory Fees Population served AM Class A <=25,000 .................................................. 25,001–75,000 ......................................... 75,001–150,000 ....................................... 150,001–500,000 ..................................... 500,001–1,200,000 .................................. 1,200,001–3,000,00 ................................. >3,000,000 ............................................... AM Class B $700 1,400 2,100 3,150 4,550 7,000 8,400 AM Class C $575 1,150 1,450 2,450 3,750 5,750 6,900 AM Class D $525 800 1,050 1,575 2,625 3,950 5,000 FM Classes A, B1 & C3 $600 900 1,500 1,800 3,000 4,800 6,000 $675 1,350 1,850 2,875 4,550 7,425 9,450 FM Classes B, C, C0, C1 & C2 $850 1,500 2,750 3,600 5,300 8,500 11,050 FY 2011 SCHEDULE OF REGULATORY FEES [International bearer circuits—submarine cable] Submarine cable systems (capacity as of December 31, 2010) Fee amount < 2.5 Gbps ......................................................................... 2.5 Gbps or greater, but less than 5 Gbps ....................... 5 Gbps or greater, but less than 10 Gbps ........................ 10 Gbps or greater, but less than 20 Gbps ...................... 20 Gbps or greater ............................................................ Final Regulatory Flexibility Analysis 36. As required by the Regulatory Flexibility Act (‘‘RFA’’),46 the Commission prepared an Initial Regulatory Flexibility Analysis (‘‘IRFA’’) in its Notice of Proposed Rulemaking (NPRM) to determine the possible economic impact on small entities by the policies and rules proposed in its NPRM. Written public comments were sought on the FY 2012 fee proposal, including on the IRFA. This Final Regulatory Flexibility Analysis (‘‘FRFA’’) conforms to the RFA.47 mstockstill on DSK4VPTVN1PROD with RULES I. Need for, and Objectives of, the Report and Order 37. This rulemaking proceeding was initiated by the Commission to revise its 46 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’’). 47 5 U.S.C. 604. VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 Address $12,825 25,650 51,300 102,625 205,225 FCC, FCC, FCC, FCC, FCC, International, International, International, International, International, Schedule of Regulatory Fees to collect $339,844,000, the amount that Congress has required the Commission to recover in regulatory fees. This Report and Order revises the fee rates in its Schedule of Regulatory Fees to reflect changes in estimated unit counts, if any, and the amount required by the Commission to collect in regulatory fees. Pursuant to rules adopted in this Order, the FCC will collect these fees in September 2012 in a manner that is efficient (e.g. using the Commission’s various electronic filing and payment systems) and without undue public burden (less reliability on paper transactions and more reliability on preloaded payment data). 38. Section 9(a)(1) of the Communications Act of 1934, as amended (the ‘‘Act’’) directs the Commission to collect regulatory fees ‘‘to recover the costs of * * * enforcement activities, policy and rulemaking activities, user information PO 00000 P.O. P.O. P.O. P.O. P.O. Box Box Box Box Box 979084, 979084, 979084, 979084, 979084, St. St. St. St. St. Louis, Louis, Louis, Louis, Louis, MO MO MO MO MO 63197–9000. 63197–9000. 63197–9000. 63197–9000. 63197–9000. services, and international activities.’’ 48 Section 9(a)(2) stipulates that regulatory fees for the enumerated activities ‘‘shall be collected only if, and only in the total amounts, required in Appropriation Acts,’’ and must ‘‘be established in amounts that will result in collection, during each fiscal year, of any amount that can be reasonably be expected to equal the amount appropriated’’ for the performance of the activities enumerated in section 9(a)(1) during that fiscal year. In this annual regulatory fee proceeding, we retain many of the current methods, policies, and procedures for collecting section 9 regulatory fees adopted by the Commission in prior years. Consistent with our established practice, we intend to collect these regulatory fees during a September 2012 filing window in order to collect the required amount by the end of our fiscal year.49 48 47 U.S.C. 159(a). Commission also expects to release in the near future a Notice of Proposed Rulemaking that 49 The Continued Frm 00061 Fmt 4700 Sfmt 4700 E:\FR\FM\03AUR1.SGM 03AUR1 mstockstill on DSK4VPTVN1PROD with RULES 46318 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations 39. In this FY 2012 Report and Order, we address the following issues: (1) Incorporating 2010 Census data into our broadcast population data, (2) assessing a regulatory fee for each broadcasting facility operating either in an analog or digital mode (but not both) for Low Power, Class A, and TV Translators/ Boosters, (3) maintaining the FY 2012 Interstate Telecommunications Service Provider (ITSP) fee rate at the same level as in FY 2011, (4) using an online filing system for the filing of requests for a refund, waiver, fee reduction, or deferment of payment of an application or regulatory fee, and (5) maintaining the Commercial Mobile Radio Service (‘‘CMRS’’) Messaging Service at the rate of $.08 per subscriber. • Regulatory Fee Obligations for AM and FM Radio Stations: The fee methodology for AM and FM radio stations is based on a number of factors, including facility attributes (e.g. power, channel/frequency) and the population served by each station. The calculation of the population served is determined by applying current United States Census Bureau data to the station’s technical and engineering data, as detailed in Table E of this Report and Order. In FY 2012, the Commission will incorporate the results of the 2010 Census data into our broadcast population data, which could precipitate a change in population count for some radio stations. These population counts, along with the station’s class and type of service, are the basis for determining regulatory fees. • Regulatory Fee Obligations for Digital Low Power, Class A, and TV Translators/Boosters: The digital transition to full-service television stations was completed on June 12, 2009, but Low Power, Class A, and TV Translators/Boosters are not required to make the digital transition until September 1, 2015. Historically, we have only considered the digital transition in the context of regulatory fees applicable to full-service television stations. Consequently, the ‘‘digital only’’ exemption does not apply to Low Power, Class A, and TV Translator/ Booster facilities. Because the digital transition in the Low Power, Class A, and TV Translator/Booster facilities is still voluntary, these facilities may transition from analog to digital service at varying times prior to September 1, 2015. During this period of transition, will propose to update our current cost allocation percentages and revise our cost allocation methodology. We expect to implement any changes that result from this rulemaking in FY 2013; they do not affect the fees set in this FY 2012 Report and Order. VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 licensees of Low Power, Class A, and TV Translator/Booster facilities may be operating in analog mode, in digital mode, or in an analog and digital simulcast mode. In the absence of receiving any comments, we conclude that a single fee will be assessed for each facility regardless of whether it transmits in analog or digital mode, digital mode, or simulcasting in both analog and digital modes. As more of these facilities convert to digital mode, the Commission will revisit how regulatory fees will be assessed. • Regulatory Fee Obligations of Interstate Telecommunications Service Providers (ITSP): In our FY 2011 Report and Order, we assessed the Interstate Telecommunications Service Provider (‘‘ITSP’’) industry a regulatory fee of $.00375 per revenue dollar. This fee reflected the Commission’s decision to limit the increase in ITSP regulatory fees in light of the continuing decrease in the revenue base upon which ITSP regulatory fees are calculated, and pending a more comprehensive rebalancing of ITSP fees as part of our reexamination of the factual and methodological predicates of our regulatory fee program. This reexamination will commence shortly. In our FY 2012 Notice of Proposed Rulemaking, we proposed to assess FY 2012 ITSP regulatory fees at the same fee rate as in FY 2011, and to allocate the remaining revenue requirement across all other fee categories.50 We received one comment in support of our proposal. Because we will initiate a separate proceeding in the near future to examine these and other issues and expect to utilize any new data or methodologies adopted in setting next year’s regulatory fees, we conclude that in the interim the FY 2012 ITSP fee rate should be maintained at the FY 2011 rate of .00375. • Improving Public Information on Waiver Requests and Decisions: In our FY 2012 Notice of Proposed Rulemaking, we sought comment on requiring regulatees filing a request for a refund, waiver, fee reduction, or deferment of payment of an application or regulatory fee to use an online filing system rather than submitting their requests in hardcopy format.51 We believe that an online filing system will complement other existing online Commission systems already in place, such as the Broadcast Radio and Television Electronic Filing System (more commonly referred to as CDBS), the Cable Operations and Licensing 50 See FY 2012 Regulatory Fees NPRM, at para. 17. 51 See PO 00000 FY 2012 Regulatory Fees NPRM at para. 18. Frm 00062 Fmt 4700 Sfmt 4700 System (COALS), and Consumer Complaint Forms. The resulting fee waiver filing system will include such documents as the filed request, any relevant supporting documentation, and the resulting decision. We also proposed to apply the provisions of section 0.459 to requests that electronically-filed material be withheld from public inspection.52 We received no comments on this issue. We therefore adopt our proposal and require that all requests for refunds, waivers, fee reductions, or deferments of payment be filed using an online system. We direct the Office of Managing Director to take the necessary steps to assist regulatees in transitioning to electronic filing. • Commercial Mobile Radio Services (‘‘CMRS’’) Messaging Services: In our FY 2012 Notice of Proposed Rulemaking, the Commission proposed to maintain the CMRS Messaging fee rate at $.08 per subscriber. We received one comment in support of our action. Because the prevailing circumstances that first initiated our action in FY 2003 53 still exists today, we find it appropriate that the FY 2012 CMRS Messaging regulatory fee remain at a rate of $0.08 per subscriber. Administrative and Operational Issues: In FY 2009, we instituted a mandatory filing requirement using the Commission’s electronic filing and payment system (also known as ‘‘Fee Filer’’).54 Regulatees filing their annual regulatory fee payments were required to begin the process by entering the Commission’s Fee Filer system with a valid FCC Registration Number (‘‘FRN’’) and password.55 This change, which required regulatees to use Fee Filer for the filing of annual regulatory fees, not the payment of such regulatory fees 56 was beneficial to both licensees and to the Commission. For licensees, the 52 Specifically, section 0.457(a) (2) through (g) describe, inter alia, how confidential material should be submitted electronically, what showings must be made to justify withholding electronicallysubmitted information from public inspection, and how the Commission will resolve confidentiality requests. 53 Beginning in FY 2003, the Commission maintained the paging regulatory fee rate at $.08 per subscriber, the same level as in FY 2002, and it has maintained this level of $.08 per subscriber for all subsequent years. See Assessment and Collection of Regulatory Fees for Fiscal Year 2003, Report and Order, 18 FCC Rcd 15988 paras. 21–22 (2003) (FY 2003 Report and Order). 54 See Assessment and Collection of Regulatory Fees for Fiscal Year FY 2009, Report and Order 24, FCC Rcd 10301 at paras. 20 and 21 (‘‘FY 2009 Report and Order’’). 55 In order to do this, licensees must have a current and valid FRN address on file in the Commission’s Registration System (CORES). 56 Regulatees have different options when making a payment, including credit card, check, and wire transfer. E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations mandatory use of Fee Filer eliminates the need to manually complete and submit a hardcopy Form 159, and for the Commission, the data in electronic format makes it much easier to process payments efficiently and effectively. We received no specific comment to our general inquiry. Accordingly, the Commission will continue its efforts to promote greater efficiency in its regulatory fee notification and collection processes, subject to appropriate notice and comment. II. Summary of Significant Issues Raised by Public Comments in Response to the IRFA 40. No parties have raised issues in response to the IRFA. III. Description and Estimate of the Number of Small Entities to Which the Rules Will Apply 41. 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.57 The RFA generally defines the term ‘‘small entity’’ as having the same meaning as the terms ‘‘small business,’’ ‘‘small organization,’’ and ‘‘small governmental jurisdiction.’’ 58 In addition, the term ‘‘small business’’ has the same meaning as the term ‘‘small business concern’’ under the Small Business Act.59 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.60 42. Small Businesses. Nationwide, there are a total of approximately 29.6 million small businesses, according to the SBA.61 43. Small Businesses, Small Organizations, and Small Governmental Jurisdictions. Our action may, over time, affect small entities that are not easily categorized at present. We therefore describe here, at the outset, three comprehensive, statutory small entity 57 5 U.S.C. 603(b)(3). U.S.C. 601(6). 59 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.’’ 60 15 U.S.C. 632. 61 See SBA, Office of Advocacy, ‘‘Frequently Asked Questions,’’ https://web.sba.gov/faqs (accessed Jan. 2009). mstockstill on DSK4VPTVN1PROD with RULES 58 5 VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 size standards.62 First, nationwide, there are a total of approximately 27.5 million small businesses, according to the SBA.63 In addition, a ‘‘small organization’’ is generally ‘‘any not-forprofit enterprise which is independently owned and operated and is not dominant in its field.’’ 64 Nationwide, as of 2007, there were approximately 1,621,315 small organizations.65 Finally, 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 2011 indicate that there were 89,476 local governmental jurisdictions in the United States.67 We estimate that, of this total, as many as 88, 506 entities may qualify as ‘‘small governmental jurisdictions.’’ 68 Thus, we estimate that most governmental jurisdictions are small. 44. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the Commission nor the SBA has developed a small business size standard specifically for incumbent local exchange services. The appropriate size standard under SBA rules is for the category Wired Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer employees.69 Census Bureau data for 2007, which now supersede data 62 See 5 U.S.C. 601(3)–(6). SBA, Office of Advocacy, ‘‘Frequently Asked Questions,’’ web.sba.gov/faqs (last visited May 6,2011; figures are from 2009). 64 5 U.S.C. 601(4). 65 Independent Sector, The New Nonprofit Almanac & Desk Reference (2010). 66 5 U.S.C. 601(5). 67 U.S. Census Bureau, Statistical Abstract of the United States: 2011, Table 427 (2007) 68 The 2007 U.S Census data for small governmental organizations indicate that there were 89, 476 ‘‘Local Governments’’ in 2007. (U.S. Census Bureau, Statistical Abstract of the United States 2011, Table 428.) The criterion by which the size of such local governments is determined to be small is a population of 50,000. However, since the Census Bureau does not specifically apply that criterion, it cannot be determined with precision how many of such local governmental organizations is small. Nonetheless, the inference seems reasonable that substantial number of these governmental organizations has a population of less than 50, 000. To look at Table 428 in conjunction with a related set of data in Table 429 in the Census’s Statistical Abstract of the U.S., that inference is further supported by the fact that in both Tables, many entities that may well be small are included in the 89,476 local governmental organizations, e.g. county, municipal, township and town, school district and special district entities. Measured by a criterion of a population of 50,000 many specific sub-entities in this category seem more likely than larger county-level governmental organizations to have small populations. Accordingly, of the 89,746 small governmental organizations identified in the 2007 Census, the Commission estimates that a substantial majority is small. 68 13 CFR 121.201, NAICS code 517110. 63 See PO 00000 Frm 00063 Fmt 4700 Sfmt 4700 46319 from the 2002 Census, show that there were 3,188 firms in this category that operated for the entire year. Of this total, 3,144 had employment of 999 or fewer, and 44 firms had had employment of 1,000 or more. According to Commission data, 1,307 carriers reported that they were incumbent local exchange service providers.70 Of these 1,307 carriers, an estimated 1,006 have 1,500 or fewer employees and 301 have more than 1,500 employees.71 Consequently, the Commission estimates that most providers of local exchange service are small entities that may be affected by the rules and policies proposed in the NPRM. Thus under this category and the associated small business size standard, the majority of these incumbent local exchange service providers can be considered small providers.72 45. Competitive Local Exchange Carriers (Competitive LECs), Competitive Access Providers (CAPs), Shared-Tenant Service Providers, and Other Local Service Providers. Neither the Commission nor the SBA has developed a small business size standard specifically for these service providers. The appropriate 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.73 Census Bureau data for 2007 show that there were 3,188 firms in this category that operated for the entire year. Of this total, 3,144 had employment of 999 or fewer, and 44 firms had had employment of 1,000 employees or more. Thus under this category and the associated small business size standard, the majority of these Competitive LECs, CAPs, SharedTenant Service Providers, and Other Local Service Providers can be considered small entities.74 According to Commission data, 1,442 carriers reported that they were engaged in the provision of either competitive local exchange services or competitive access provider services.75 Of these 1,442 carriers, an estimated 1,256 have 1,500 70 See Trends in Telephone Service, Federal Communications Commission, Wireline Competition Bureau, Industry Analysis and Technology Division at Table 5.3 (Sept. 2010) (‘‘Trends in Telephone Service’’). 71 See id. 72 See https://factfinder.census.gov/servlet/ IBQTable?_bm=y&-fds_name=EC0700A1&geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&_lang=en. 73 13 CFR 121.201, NAICS code 517110. 74 See https://factfinder.census.gov/servlet/ IBQTable?_bm=y&-fds_name=EC0700A1&geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&_lang=en. 75 See Trends in Telephone Service, at tbl. 5.3. E:\FR\FM\03AUR1.SGM 03AUR1 46320 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations or fewer employees and 186 have more than 1,500 employees.76 In addition, 17 carriers have reported that they are Shared-Tenant Service Providers, and all 17 are estimated to have 1,500 or fewer employees.77 In addition, 72 carriers have reported that they are Other Local Service Providers.78 Of the 72, seventy have 1,500 or fewer employees and two have more than 1,500 employees.79 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 rules adopted pursuant to the NPRM. 46. 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.80 Census data for 2007 show that 1,523 firms provided resale services during that year. Of that number, 1,522 operated with fewer than 1000 employees and one operated with more than 1,000.81 Thus under this category and the associated small business size standard, the majority of these local resellers can be considered small entities. According to Commission data, 213 carriers have reported that they are engaged in the provision of local resale services.82 Of these, an estimated 211 have 1,500 or fewer employees and two have more than 1,500 employees.83 Consequently, the Commission estimates that the majority of local resellers are small entities that may be affected by rules adopted pursuant to the Notice. 47. 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.84 Census data for 2007 show that 1,523 firms provided resale services during that year. Of that number, 1,522 operated with fewer than 1,000 employees and one operated with more than 1,000.85 Thus under this category 76 Id. 77 Id. 78 Id. 79 Id. mstockstill on DSK4VPTVN1PROD with RULES 80 13 CFR 121.201, NAICS code 517911. 81 https://factfinder.census.gov/servlet/ IBQTable?_bm=y&-geo_id=&-_skip=800&ds_name=EC0751SSSZ5&-_lang=en. 82 See Trends in Telephone Service, at tbl. 5.3. 83 Id. 84 13 CFR 121.201, NAICS code 517911. 85 https://factfinder.census.gov/servlet/ IBQTable?_bm=y&-geo_id=&-_skip=800&ds_name=EC0751SSSZ5&-_lang=en. VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 and the associated small business size standard, the majority of these resellers can be considered small entities. According to Commission data,86 881 carriers have reported that they are engaged in the provision of toll resale services. Of these, an estimated 857 have 1,500 or fewer employees and 24 have more than 1,500 employees. Consequently, the Commission estimates that the majority of toll resellers are small entities that may be affected by our proposed rules. 48. 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.87 Census Bureau data for 2007 shows that there were 3,188 firms in this category that operated for the entire year. Of this total, 3,144 had employment of 999 or fewer, and 44 firms had had employment of 1,000 employees or more. Thus under this category and the associated small business size standard, the majority of these PSPs can be considered small entities.88 According to Commission data,89 657 carriers have reported that they are engaged in the provision of payphone services. Of these, an estimated 653 have 1,500 or fewer employees and four have more than 1,500 employees. Consequently, the Commission estimates that the majority of payphone service providers are small entities that may be affected by our action. 49. Interexchange Carriers. 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.90 Census Bureau data for 2007 shows that there were 3,188 firms in this category that operated for the entire year. Of this total, 3,144 had employment of 999 or fewer, and 44 firms had had employment of 1,000 employees or more. Thus under this category and the associated small business size standard, the majority of 86 Trends in Telephone Service, at tbl. 5.3. CFR 121.201, NAICS code 517110. 88 See https://factfinder.census.gov/servlet/ IBQTable?_bm=y&-fds_name=EC0700A1&geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&_lang=en. 89 Trends in Telephone Service, at tbl. 5.3. 90 13 CFR 121.201, NAICS code 517110. 87 13 PO 00000 Frm 00064 Fmt 4700 Sfmt 4700 these Interexchange carriers can be considered small entities.91 According to Commission data, 359 companies reported that their primary telecommunications service activity was the provision of interexchange services.92 Of these 359 companies, an estimated 317 have 1,500 or fewer employees and 42 have more than 1,500 employees.93 Consequently, the Commission estimates that the majority of interexchange service providers are small entities that may be affected by rules adopted pursuant to the NPRM. 50. 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.94 Census Bureau data for 2007 show that there were 3,188 firms in this category that operated for the entire year. Of this total, 3,144 had employment of 999 or fewer, and 44 firms had had employment of 1,000 employees or more. Thus under this category and the associated small business size standard, the majority of these Interexchange carriers can be considered small entities.95 According to Commission data, 33 carriers have reported that they are engaged in the provision of operator services. Of these, an estimated 31 have 1,500 or fewer employees and 2 have more than 1,500 employees.96 Consequently, the Commission estimates that the majority of OSPs are small entities that may be affected by our proposed rules. 51. 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.97 Census data for 2007 show that 1,523 firms provided resale services during that year. Of that number, 1,522 operated with fewer than 1000 employees and one operated with more 91 See https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-fds_name=EC0700A1&-geo_id=&-_ skip=600&-ds_name=EC0751SSSZ5&-_lang=en. 92 See Trends in Telephone Service, at tbl. 5.3. 93 Id. 94 13 CFR 121.201, NAICS code 517110. 95 See https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-fds_name=EC0700A1&-geo_id=&-_ skip=600&-ds_name=EC0751SSSZ5&-_lang=en. 96 Trends in Telephone Service, at tbl. 5.3. 97 13 CFR 121.201, NAICS code 517911. E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES than 1,000.98 Thus under this category and the associated small business size standard, the majority of these prepaid calling card providers can be considered small entities. According to Commission data, 193 carriers have reported that they are engaged in the provision of prepaid calling cards.99 Of these, all 193 have 1,500 or fewer employees and none have more than 1,500 employees.100 Consequently, the Commission estimates that the majority of prepaid calling card providers are small entities that may be affected by rules adopted pursuant to the Notice. 52. 800 and 800-Like Service Subscribers.101 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.102 Census data for 2007 show that 1,523 firms provided resale services during that year. Of that number, 1,522 operated with fewer than 1000 employees and one operated with more than 1,000.103 Thus under this category and the associated small business size standard, the majority of resellers in this classification can be considered small entities. To focus specifically on the number of subscribers than on those firms which make subscription service available, the most reliable source of information regarding the number of these service subscribers appears to be data the Commission collects on the 800, 888, 877, and 866 numbers in use.104 According to our data for September 2009, the number of 800 numbers assigned was 7,860,000; the number of 888 numbers assigned was 5,888,687; the number of 877 numbers assigned was 4,721,866; and the number of 866 numbers assigned was 7,867,736. The Commission does not have data specifying the number of these subscribers that are not independently owned and operated or have more than 1,500 employees, and thus are unable at this time to estimate with greater precision the number of toll free 98 https://factfinder.census.gov/servlet/IBQTable?_ bm=y&-geo_id=&-_skip=800&-ds_name=EC0751S SSZ5&-_lang=en. 99 See Trends in Telephone Service, at tbl. 5.3. 100 Id. 101 We include all toll-free number subscribers in this category, including those for 888 numbers. 102 13 CFR 121.201, NAICS code 517911. 103 https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-_skip=800&-ds_name= EC0751SSSZ5&-_lang=en. 104 Trends in Telephone Service, at tbls. 18.4, 18.5, 18.6, 18.7. VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 subscribers that would qualify as small businesses under the SBA size standard. Consequently, the Commission estimates that there are 7,860,000 or fewer small entity 800 subscribers; 5,888,687 or fewer small entity 888 subscribers; 4,721,866 or fewer small entity 877 subscribers; and 7,867,736 or fewer small entity 866 subscribers. 53. Satellite Telecommunications Providers. Two economic census categories address the satellite industry. The first category has a small business size standard of $15 million or less in average annual receipts, under SBA rules.105 The second has a size standard of $25 million or less in annual receipts.106 54. The category of Satellite Telecommunications ‘‘comprises establishments primarily engaged in providing telecommunications services to other establishments in the telecommunications and broadcasting industries by forwarding and receiving communications signals via a system of satellites or reselling satellite telecommunications.’’ 107 Census Bureau data for 2007 show that 512 Satellite Telecommunications firms that operated for that entire year.108 Of this total, 464 firms had annual receipts of under $10 million, and 18 firms had receipts of $10 million to $24,999,999.109 Consequently, the Commission estimates that the majority of Satellite Telecommunications firms are small entities that might be affected by our action. 55. The second category, i.e. ‘‘All Other Telecommunications’’ comprises ‘‘establishments primarily engaged in providing specialized telecommunications services, such as satellite tracking, communications telemetry, and radar station operation. This industry also includes establishments primarily engaged in providing satellite terminal stations and associated facilities connected with one or more terrestrial systems and capable of transmitting telecommunications to, and receiving telecommunications from, satellite systems. Establishments providing Internet services or voice over Internet protocol (VoIP) services via client-supplied telecommunications connections are also included in this 105 13 CFR 121.201, NAICS code 517410. CFR 121.201, NAICS code 517919. 107 U.S. Census Bureau, 2007 NAICS Definitions, 517410 Satellite Telecommunications. 108 See https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-_skip=900&-ds_name= EC0751SSSZ4&-_lang=en. 109 See https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-_skip=900&-ds_name= EC0751SSSZ4&-_lang=en. 106 13 PO 00000 Frm 00065 Fmt 4700 Sfmt 4700 46321 industry.’’ 110 For this category, Census Bureau data for 2007 shows that there were a total of 2,383 firms that operated for the entire year.111 Of this total, 2,347 firms had annual receipts of under $25 million and 12 firms had annual receipts of $25 million to $49, 999,999.112 Consequently, the Commission estimates that the majority of All Other Telecommunications firms are small entities that might be affected by our action. 56. Wireless Telecommunications Carriers (except satellite). This industry comprises establishments engaged in operating and maintaining switching and transmission facilities to provide communications via the airwaves. Establishments in this industry have spectrum licenses and provide services using that spectrum, such as cellular phone services, paging services, wireless Internet access, and wireless video services.113 The appropriate size standard under SBA rules is for the category Wireless Telecommunications Carriers. The size standard for that category is that a business is small if it has 1,500 or fewer employees.114 Under the present and prior categories, the SBA has deemed a wireless business to be small if it has 1,500 or fewer employees.115 For this category, census data for 2007 show that there were 1,383 firms that operated for the entire year.116 Of this total, 1,368 firms had employment of 999 or fewer employees and 15 had employment of 1000 employees or more.117 Thus under this category and the associated small business size standard,, the Commission estimates that the majority of wireless telecommunications carriers (except 110 https://www.census.gov/cgi-bin/sssd/naics/ naicsrch?code=517919&search=2007%20NAICS %20Search. 111 https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-_skip=900&-ds_name= EC0751SSSZ4&-_lang=en. 112 https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-_skip=900&-ds_name= EC0751SSSZ4&-_lang=en. 113 https://www.census.gov/cgi-bin/sssd/naics/ naicsrch?code=517210&search=2007%20NAICS %20Search 114 13 CFR 121.201, NAICS code 517210. 115 13 CFR 121.201, NAICS code 517210. The now-superseded, pre-2007 CFR citations were 13 CFR 121.201, NAICS codes 517211 and 517212 (referring to the 2002 NAICS). 116 U.S. Census Bureau, Subject Series: Information, Table 5, ‘‘Establishment and Firm Size: Employment Size of Firms for the United States: 2007 NAICS Code 517210’’ (issued Nov. 2010). 117 Id. Available 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 ‘‘100 employees or more.’’ E:\FR\FM\03AUR1.SGM 03AUR1 46322 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES satellite) are small entities that may be affected by our proposed action.118 57. Licenses Assigned by Auctions. Initially, we note that, as a general matter, the number of winning bidders that qualify as small businesses at the close of an auction does not necessarily represent the number of small businesses currently in service. Also, the Commission does not generally track subsequent business size unless, in the context of assignments or transfers, unjust enrichment issues are implicated. 58. Paging Services. Neither the SBA nor the FCC has developed a definition applicable exclusively to paging services. However, a variety of paging services is now categorized under Wireless Telecommunications Carriers (except satellite).119 This industry comprises establishments engaged in operating and maintaining switching and transmission facilities to provide communications via the airwaves. Establishments in this industry have spectrum licenses and provide services using that spectrum, such as cellular phone services, paging services, wireless Internet access, and wireless video services. Illustrative examples in the paging context include paging services, except satellite; two-way paging communications carriers, except satellite; and radio paging services communications carriers. The SBA has deemed a paging service in this category to be small if it has 1,500 or fewer employees.120 For this category, census data for 2007 show that there were 1,383 firms that operated for the entire year.121 Of this total, 1,368 firms had employment of 999 or fewer employees and 15 had employment of 1000 employees or more.122 Thus under this category and the associated small business size standard, the Commission estimates that the majority of paging services in the category of wireless telecommunications carriers (except 118 See https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-fds_name=EC0700A1&-geo_id=&-_ skip=600&-ds_name=EC0751SSSZ5&-_lang=en 119 U.S. Census Bureau, 2007 NAICS Definitions, ‘‘517210 Wireless Telecommunications Categories (Except Satellite)’’; https://www.census.gov/naics/ 2007/def/ND517210.HTM#N517210. 120 U.S. Census Bureau, 2007 NAICS Definitions, ‘‘517210 Wireless Telecommunications Categories (Except Satellite).’’ 121 U.S. Census Bureau, Subject Series: Information, Table 5, ‘‘Establishment and Firm Size: Employment Size of Firms for the United States: 2007 NAICS Code 517210’’ (issued Nov. 2010). 122 Id. Available 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 ‘‘100 employees or more.’’ VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 satellite) are small entities that may be affected by our proposed action.123 59. 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.124 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.125 The SBA has approved this definition.126 An initial auction of Metropolitan Economic Area (‘‘MEA’’) licenses was conducted in the year 2000. Of the 2,499 licenses auctioned, 985 were sold.127 Fifty-seven companies claiming small business status won 440 licenses.128 A subsequent auction of MEA and Economic Area (‘‘EA’’) licenses was held in the year 2001. Of the 15,514 licenses auctioned, 5,323 were sold.129 One hundred thirty-two companies claiming small business status purchased 3,724 licenses. A third auction, consisting of 8,874 licenses in each of 175 EAs and 1,328 licenses in all but three of the 51 MEAs, was held in 2003. Seventy-seven bidders claiming small or very small business status won 2,093 licenses.130 A fourth auction of 9,603 lower and upper band paging licenses was held in the year 2010. 29 bidders claiming small or very small business status won 3,016 licenses. 123 See https://factfinder.census.gov/servlet/ IBQTable?_bm=y&-fds_name=EC0700A1&geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&_lang=en. 124 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). 125 Paging Second Report and Order, 12 FCC Rcd at 2811, para. 179. 126 See Letter from Aida Alvarez, Administrator, SBA, to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau (‘‘WTB’’), FCC (Dec. 2, 1998) (‘‘Alvarez Letter 1998’’). 127 See ‘‘929 and 931 MHz Paging Auction Closes,’’ Public Notice, 15 FCC Rcd 4858 (WTB 2000). 128 See id. 129 See ‘‘Lower and Upper Paging Band Auction Closes,’’ Public Notice, 16 FCC Rcd 21821 (WTB 2002). 130 See ‘‘Lower and Upper Paging Bands Auction Closes,’’ Public Notice, 18 FCC Rcd 11154 (WTB 2003). The current number of small or very small business entities that hold wireless licenses may differ significantly from the number of such entities that won in spectrum auctions due to assignments and transfers of licenses in the secondary market over time. In addition, some of the same small business entities may have won licenses in more than one auction. PO 00000 Frm 00066 Fmt 4700 Sfmt 4700 60. 2.3 GHz Wireless Communications Services. This service can be used for fixed, mobile, radiolocation, and digital audio broadcasting satellite uses. The Commission defined ‘‘small business’’ for the wireless communications services (‘‘WCS’’) auction as an entity with average gross revenues of $40 million for each of the three preceding years, and a ‘‘very small business’’ as an entity with average gross revenues of $15 million for each of the three preceding years.131 The SBA approved these definitions.132 The Commission conducted an auction of geographic area licenses in the WCS service in 1997. In the auction, seven bidders that qualified as very small business entities won 31 licenses, and one bidder that qualified as a small business entity won a license. 61. 1670–1675 MHz Services. This service can be used for fixed and mobile uses, except aeronautical mobile.133 An auction for one license in the 1670–1675 MHz band was conducted in 2003. The Commission defined a ‘‘small business’’ as an entity with attributable average annual gross revenues of not more than $40 million for the preceding three years, which would thus be eligible for a 15 percent discount on its winning bid for the 1670–1675 MHz band license. Further, the Commission defined a ‘‘very small business’’ as an entity with attributable average annual gross revenues of not more than $15 million for the preceding three years, which would thus be eligible to receive a 25 percent discount on its winning bid for the 1670–1675 MHz band license. The winning bidder was not a small entity. 62. Wireless Telephony. Wireless telephony includes cellular, personal communications services, and specialized mobile radio telephony carriers. As noted, the SBA has developed a small business size standard for Wireless Telecommunications Carriers (except Satellite).134 Under the SBA small business size standard, a business is small if it has 1,500 or fewer employees.135 Census data for 2007 shows that there were 1,383 firms that operated that year.136 Of those 1,383, 1,368 had fewer than 100 employees, and 15 firms had more than 100 131 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). 132 See Alvarez Letter 1998. 133 47 CFR 2.106; see generally 47 CFR 27.1–.70. 134 13 CFR 121.201, NAICS code 517210. 135 Id. 136 U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-fds_name=EC0700A1&-_ skip=700&-ds_name=EC0751SSSZ5&-_lang=en. E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations employees. Thus under this category and the associated small business size standard, the majority of firms can be considered small. According to Trends in Telephone Service data, 434 carriers reported that they were engaged in wireless telephony.137 Of these, an estimated 222 have 1,500 or fewer employees and 212 have more than 1,500 employees.138 Therefore, approximately half of these entities can be considered small. Similarly, according to Commission data, 413 carriers reported that they were engaged in the provision of wireless telephony, including cellular service, Personal Communications Service (PCS), and Specialized Mobile Radio (SMR) Telephony services.139 Of these, an estimated 261 have 1,500 or fewer employees and 152 have more than 1,500 employees.140 Consequently, the Commission estimates that approximately half or more of these firms can be considered small. Thus, using available data, we estimate that the majority of wireless firms can be considered small. 63. Broadband Personal Communications Service. Broadband Personal Communications Service. The broadband personal communications services (PCS) spectrum is divided into six frequency blocks designated A through F, and the Commission has held auctions for each block. The Commission initially defined a ‘‘small business’’ for C- and F-Block licenses as an entity that has average gross revenues of $40 million or less in the three previous years.141 For F–Block licenses, 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 years.142 These small business size standards, in the context of broadband PCS auctions, have been approved by the SBA.143 No small businesses within the SBAapproved small business size standards bid successfully for licenses in Blocks A and B. There were 90 winning bidders 137 Trends in Telephone Service, at Table 5.3. 138 Id. 139 See Trends in Telephone Service, at tbl. 5.3. id. 141 See Amendment of Parts 20 and 24 of the Commission’s Rules—Broadband PCS Competitive Bidding and the Commercial Mobile Radio Service Spectrum Cap; Amendment of the Commission’s Cellular/PCS Cross-Ownership Rule, WT Docket No. 96–59, GN Docket No. 90–314, Report and Order, 11 FCC Rcd 7824, 7850–52 paras. 57–60 (1996) (‘‘PCS Report and Order’’); see also 47 CFR 24.720(b). 142 See PCS Report and Order, 11 FCC Rcd at 7852 para. 60. 143 See Alvarez Letter 1998. mstockstill on DSK4VPTVN1PROD with RULES 140 See VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 that claimed small business status in the first two C-Block auctions. A total of 93 bidders that claimed small and very small business status won approximately 40 percent of the 1,479 licenses in the first auction for the D, E, and F Blocks.144 On April 15, 1999, the Commission completed the re-auction of 347 C-, D-, E-, and F-Block licenses in Auction No. 22.145 Of the 57 winning bidders in that auction, 48 claimed small business status and won 277 licenses. 64. On January 26, 2001, the Commission completed the auction of 422 C and F Block Broadband PCS licenses in Auction No. 35. Of the 35 winning bidders in that auction, 29 claimed small business status.146 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 242 C-, D-, E-, and F-Block licenses in Auction No. 58. Of the 24 winning bidders in that auction, 16 claimed small business status and won 156 licenses.147 On May 21, 2007, the Commission completed an auction of 33 licenses in the A, C, and F Blocks in Auction No. 71.148 Of the 14 winning bidders in that auction, six claimed small business status and won 18 licenses.149 On August 20, 2008, the Commission completed the auction of 20 C-, D-, E-, and F-Block Broadband PCS licenses in Auction No. 78.150 Of the eight winning bidders for Broadband PCS licenses in that auction, six claimed small business status and won 14 licenses.151 144 See Broadband PCS, D, E and F Block Auction Closes, Public Notice, Doc. No. 89838 (rel. Jan. 14, 1997). 145 See C, D, E, and F Block Broadband PCS Auction Closes, Public Notice, 14 FCC Rcd 6688 (WTB 1999). Before Auction No. 22, the Commission established a very small standard for the C Block to match the standard used for F Block. Amendment of the Commission’s Rules Regarding Installment Payment Financing for Personal Communications Services (PCS) Licensees, WT Docket No. 97–82, Fourth Report and Order, 13 FCC Rcd 15743, 15768 para. 46 (1998). 146 See C and F Block Broadband PCS Auction Closes; Winning Bidders Announced, Public Notice, 16 FCC Rcd 2339 (2001). 147 See Broadband PCS Spectrum Auction Closes; Winning Bidders Announced for Auction No. 58, Public Notice, 20 FCC Rcd 3703 (2005). 148 See Auction of Broadband PCS Spectrum Licenses Closes; Winning Bidders Announced for Auction No. 71, Public Notice, 22 FCC Rcd 9247 (2007). 149 Id. 150 See Auction of AWS–1 and Broadband PCS Licenses Closes; Winning Bidders Announced for Auction 78, Public Notice, 23 FCC Rcd 12749 (WTB 2008). 151 Id. PO 00000 Frm 00067 Fmt 4700 Sfmt 4700 46323 65. Advanced Wireless Services. In 2006, the Commission conducted its first auction of Advanced Wireless Services licenses in the 1710–1755 MHz and 2110–2155 MHz bands (‘‘AWS–1’’), designated as Auction 66.152 For the AWS–1 bands, the Commission has defined a ‘‘small business’’ as an entity with average annual gross revenues for the preceding three years not exceeding $40 million, and a ‘‘very small business’’ as an entity with average annual gross revenues for the preceding three years not exceeding $15 million.153 In 2006, the Commission conducted its first auction of AWS–1 licenses.154 In that initial AWS–1 auction, 31 winning bidders identified themselves as very small businesses won 142 licenses.155 Twenty-six of the winning bidders identified themselves as small businesses and won 73 licenses.156 In a subsequent 2008 auction, the Commission offered 35 AWS–1 licenses.157 Four winning bidders identified themselves as very small businesses, and three of the winning bidders identifying themselves as a small businesses, won five AWS– 1 licenses.158 66. Narrowband Personal Communications Services. In 1994, the Commission conducted two auctions of Narrowband PCS licenses. For these auctions, the Commission defined a ‘‘small business’’ as an entity with average annual gross revenues for the preceding three years not exceeding $40 152 See Auction of Advanced Wireless Services Licenses Scheduled for June 29, 2006; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and Other Procedures for Auction No. 66, AU Docket No. 06–30, Public Notice, 21 FCC Rcd 4562 (2006) (‘‘Auction 66 Procedures Public Notice’’). 153 See Service Rules for Advanced Wireless services in the 1.7 GHz and 2.1 GHz Bands, Report and Order, 18 FCC Rcd 25,162, App. B (2003), modified by Service Rules for Advanced Wireless Services In the 1.7 GHz and 2.1 GHz Bands, Order on Reconsideration, 20 FCC Rcd 14,058, App. C (2005). 154 See Auction of Advanced Wireless Services Licenses Scheduled for June 29, 2006; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and Other Procedures for Auction No. 66, AU Docket No. 06–30, Public Notice, 21 FCC Rcd 4562 (2006) (‘‘Auction 66 Procedures Public Notice’’). 155 See Auction of Advanced Wireless Services Licenses Closes; Winning Bidders Announced for Auction No. 66, Public Notice, 21 FCC Rcd 10,521 (2006) (‘‘Auction 66 Closing Public Notice’’). 156 See id. 157 See AWS–1 and Broadband PCS Procedures Public Notice, 23 FCC Rcd at 7499. Auction 78 also included an auction of broadband PCS licenses. 158 See Auction of AWS–1 and Broadband PCS Licenses Closes, Winning Bidders Announced for Auction 78, Down Payments Due September 9, 2008, FCC Forms 601 and 602 Due September 9, 2008, Final Payments Due September 23, 2008, TenDay Petition to Deny Period, Public Notice, 23 FCC Rcd 12,749 (2008). E:\FR\FM\03AUR1.SGM 03AUR1 46324 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations million.159 Through these auctions, the Commission awarded a total of 41 licenses, 11 of which were obtained by four small businesses.160 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.161 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.162 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.163 The SBA has approved these small business size standards.164 A third auction of Narrowband PCS licenses was conducted in 2001. In that auction, five bidders won 317 (Metropolitan Trading Areas and nationwide) licenses.165 Three of the winning bidders claimed status as a small or very small entity and won 311 licenses. 67. Lower 700 MHz Band Licenses. The Commission previously adopted criteria for defining three groups of small businesses for purposes of determining their eligibility for special provisions such as bidding credits.166 The Commission defined a ‘‘small business’’ as an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $40 million for the preceding three years.167 A ‘‘very small business’’ is defined as an entity that, together with its affiliates and mstockstill on DSK4VPTVN1PROD with RULES 159 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). 160 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). 161 Amendment of the Commission’s Rules to Establish New Personal Communications Services, Narrowband PCS, Second Report and Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd 10456, 10476, para. 40 (2000) (‘‘Narrowband PCS Second Report and Order’’). 162 Narrowband PCS Second Report and Order, 15 FCC Rcd at 10476, para. 40. 163 Id. 164 See Alvarez Letter 1998. 165 See ‘‘Narrowband PCS Auction Closes,’’ Public Notice, 16 FCC Rcd 18663 (WTB 2001). 166 See Reallocation and Service Rules for the 698–746 MHz Spectrum Band (Television Channels 52–59), Report and Order, 17 FCC Rcd 1022 (2002) (‘‘Channels 52–59 Report and Order’’). 167 See Channels 52–59 Report and Order, 17 FCC Rcd at 1087–88, para. 172. VerDate Mar<15>2010 18:13 Aug 02, 2012 Jkt 226001 controlling principals, has average gross revenues that are not more than $15 million for the preceding three years.168 Additionally, the Lower 700 MHz Service had a third category of small business status for Metropolitan/Rural Service Area (‘‘MSA/RSA’’) licenses— ‘‘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.169 The SBA approved these small size standards.170 An auction of 740 licenses was conducted in 2002 (one license in each of the 734 MSAs/RSAs and one license in each of the six Economic Area Groupings (EAGs)). Of the 740 licenses available for auction, 484 licenses were won by 102 winning bidders. Seventytwo of the winning bidders claimed small business, very small business, or entrepreneur status and won a total of 329 licenses.171 A second auction commenced on May 28, 2003, closed on June 13, 2003, and included 256 licenses.172 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.173 In 2005, the Commission completed an auction of 5 licenses in the lower 700 MHz band (Auction 60). All three winning bidders claimed small business status. 68. In 2007, the Commission reexamined its rules governing the 700 MHz band in the 700 MHz Second Report and Order.174 An auction of A, B and E block licenses in the Lower 700 168 See id. id, 17 FCC Rcd at 1088, para. 173. 170 See Letter from Aida Alvarez, Administrator, SBA, to Thomas Sugrue, Chief, WTB, FCC (Aug. 10, 1999) (‘‘Alvarez Letter 1999’’). 171 See ‘‘Lower 700 MHz Band Auction Closes,’’ Public Notice, 17 FCC Rcd 17272 (WTB 2002). 172 See Lower 700 MHz Band Auction Closes, Public Notice, 18 FCC Rcd 11873 (WTB 2003). 173 See id. 174 Service Rules for the 698–746, 747–762 and 777–792 MHz Band, WT Docket No. 06–150, Revision of the Commission’s Rules to Ensure Compatibility with Enhanced 911 Emergency Calling Systems, CC Docket No. 94–102, Section 68.4(a) of the Commission’s Rules Governing Hearing Aid-Compatible Telephone, WT Docket No. 01–309, Biennial Regulatory Review—Amendment of Parts 1, 22, 24, 27, and 90 to Streamline and Harmonize Various Rules Affecting Wireless Radio Services, WT Docket No. 03–264, Former Nextel Communications, Inc. Upper 700 MHz Guard Band Licenses and Revisions to Part 27 of the Commission’s Rules, WT Docket No. 06–169, Implementing a Nationwide, Broadband Interoperable Public Safety Network in the 700 MHz Band, PS Docket No. 06–229, Development of Operational, Technical and Spectrum Requirements for Meeting Federal, State, and Local Public Safety Communications Requirements Through the Year 2010, WT Docket No. 96–86, Second Report and Order, 22 FCC Rcd 15289 (2007) (‘‘700 MHz Second Report and Order’’). 169 See PO 00000 Frm 00068 Fmt 4700 Sfmt 4700 MHz band was held in 2008.175 Twenty winning bidders claimed small business status (those with attributable average annual gross revenues that exceed $15 million and do not exceed $40 million for the preceding three years). Thirtythree winning bidders claimed very small business status (those with attributable average annual gross revenues that do not exceed $15 million for the preceding three years). In 2011, the Commission conducted Auction 92, which offered 16 lower 700 MHz band licenses that had been made available in Auction 73 but either remained unsold or were licenses on which a winning bidder defaulted. Two of the seven winning bidders in Auction 92 claimed very small business status, winning a total of four licenses. 69. Upper 700 MHz Band Licenses. In the 700 MHz Second Report and Order, the Commission revised its rules regarding Upper 700 MHz licenses.176 On January 24, 2008, the Commission commenced Auction 73 in which several licenses in the Upper 700 MHz band were available for licensing: 12 Regional Economic Area Grouping licenses in the C Block, and one nationwide license in the D Block.177 The auction concluded on March 18, 2008, with 3 winning bidders claiming very small business status (those with attributable average annual gross revenues that do not exceed $15 million for the preceding three years) and winning five licenses. 70. 700 MHz Guard Band Licenses. In 2000, the Commission adopted the 700 MHz Guard Band Report and Order, in which it established rules for the A and B block licenses in the Upper 700 MHz band, including size standards for ‘‘small businesses’’ and ‘‘very small businesses’’ for purposes of determining their eligibility for special provisions such as bidding credits.178 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.179 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 175 See Auction of 700 MHz Band Licenses Closes, Public Notice, 23 FCC Rcd 4572 (WTB 2008). 176 700 MHz Second Report and Order, 22 FCC Rcd 15289. 177 See Auction of 700 MHz Band Licenses Closes, Public Notice, 23 FCC Rcd 4572 (WTB 2008). 178 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) (‘‘700 MHz Guard Band Report and Order’’). 179 See 700 MHz Guard Band Report and Order, 15 FCC Rcd at 5343, para. 108. E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations $15 million for the preceding three years.180 SBA approval of these definitions is not required.181 An auction of these licenses was conducted in 2000.182 Of the 104 licenses auctioned, 96 licenses were won by 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 was held in 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.183 71. Specialized Mobile Radio. The Commission adopted small business size standards for the purpose of determining eligibility for bidding credits in auctions of Specialized Mobile Radio (SMR) geographic area licenses in the 800 MHz and 900 MHz bands. The Commission defined a ‘‘small business’’ as an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $15 million for the preceding three years.184 The Commission defined a ‘‘very small business’’ as an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $3 million for the preceding three years.185 The SBA has approved these small business size standards for both the 800 MHz and 900 MHz SMR Service.186 The first 900 MHz SMR auction was completed in 1996. Sixty bidders claiming that they qualified as small businesses under the $15 million size standard won 263 licenses in the 900 MHz SMR band. In 2004, the Commission held a second auction of 900 MHz SMR licenses and three winning bidders identifying themselves as very small businesses won 7 licenses.187 The auction of 800 MHz SMR licenses for the upper 200 channels was conducted in 1997. Ten bidders claiming that they qualified as small or very small businesses under the $15 million size standard won 38 See id. id., 15 FCC Rcd 5299, 5343, para. 108 n.246 (for the 746–764 MHz and 776–794 MHz bands, the Commission is exempt from 15 U.S.C. 632, which requires Federal agencies to obtain SBA approval before adopting small business size standards). 182 See ‘‘700 MHz Guard Bands Auction Closes: Winning Bidders Announced,’’ Public Notice, 15 FCC Rcd 18026 (2000). 183 See ‘‘700 MHz Guard Bands Auction Closes: Winning Bidders Announced,’’ Public Notice, 16 FCC Rcd 4590 (WTB 2001). 184 47 CFR 90.810, 90.814(b), 90.912. 185 47 CFR 90.810, 90.814(b), 90.912. 186 See Alvarez Letter 1999. 187 See 900 MHz Specialized Mobile Radio Service Spectrum Auction Closes: Winning Bidders Announced,’’ Public Notice, 19 FCC Rcd. 3921 (WTB 2004). 180 licenses for the upper 200 channels.188 A second auction of 800 MHz SMR licenses was conducted in 2002 and included 23 BEA licenses. One bidder claiming small business status won five licenses.189 72. The auction of the 1,053 800 MHz SMR licenses for the General Category channels was conducted in 2000. Eleven bidders who won 108 licenses for the General Category channels in the 800 MHz SMR band qualified as small or very small businesses.190 In an auction completed in 2000, a total of 2,800 Economic Area licenses in the lower 80 channels of the 800 MHz SMR service were awarded.191 Of the 22 winning bidders, 19 claimed small or very small business status and won 129 licenses. Thus, combining all four auctions, 41 winning bidders for geographic licenses in the 800 MHz SMR band claimed to be small businesses. 73. 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 not exceeding $15 million. One firm has over $15 million in revenues. In addition, we do not know how many of these firms have 1,500 or fewer employees.192 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. 74. 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 small business size mstockstill on DSK4VPTVN1PROD with RULES 181 See VerDate Mar<15>2010 18:13 Aug 02, 2012 Jkt 226001 188 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). 189 See ‘‘Multi-Radio Service Auction Closes,’’ Public Notice, 17 FCC Rcd 1446 (WTB 2002). 190 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). 191 See ‘‘800 MHz SMR Service Lower 80 Channels Auction Closes; Winning Bidders Announced,’’ Public Notice, 16 FCC Rcd 1736 (2000). 192 See generally 13 CFR 121.201, NAICS code 517210. PO 00000 Frm 00069 Fmt 4700 Sfmt 4700 46325 standard for small entities specifically applicable to such incumbent 220 MHz Phase I licensees. To estimate the number of such licensees that are small businesses, the Commission applies the small business size standard under the SBA rules applicable. The SBA has deemed a wireless business to be small if it has 1,500 or fewer employees.193 For this service, the SBA uses the category of Wireless Telecommunications Carriers (except Satellite). Census data for 2007, which supersede data contained in the 2002 Census, show that there were 1,383 firms that operated that year.194 Of those 1,383, 1,368 had fewer than 100 employees, and 15 firms had more than 100 employees. Thus under this category and the associated small business size standard, the majority of firms can be considered small. 75. 220 MHz Radio Service—Phase II Licensees. The 220 MHz service has both Phase I and Phase II licenses. The Phase II 220 MHz service licenses are assigned by auction, where mutually exclusive applications are accepted. In the 220 MHz Third Report and Order, the Commission adopted a small business size standard for defining ‘‘small’’ and ‘‘very small’’ businesses for purposes of determining their eligibility for special provisions such as bidding credits.195 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.196 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.197 The SBA has approved these small size standards.198 Auctions of Phase II licenses commenced on and closed in 193 13 CFR 121.201, NAICS code 517210 (2007 NAICS). The now-superseded, pre-2007 CFR citations were 13 CFR 121.201, NAICS codes 517211 and 517212 (referring to the 2002 NAICS). 194 U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/ IBQTable?_bm=y&-geo_id=&fds_name=EC0700A1&-_skip=700&ds_name=EC0751SSSZ5&-_lang=en. 195 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). 196 Id. at 11068 para. 291. 197 Id. 198 See Letter to Daniel Phythyon, Chief, Wireless Telecommunications Bureau, Federal Communications Commission, from Aida Alvarez, Administrator, Small Business Administration, dated January 6, 1998 (Alvarez to Phythyon Letter 1998). E:\FR\FM\03AUR1.SGM 03AUR1 46326 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES 1998.199 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.200 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.201 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.202 In 2007, the Commission conducted a fourth auction of the 220 MHz licenses, designated as Auction 72.203 Auction 72, which offered 94 Phase II 220 MHz Service licenses, concluded in 2007.204 In this auction, five winning bidders won a total of 76 licenses. Two winning bidders identified themselves as very small businesses won 56 of the 76 licenses. One of the winning bidders that identified themselves as a small business won 5 of the 76 licenses won. 76. Private Land Mobile Radio (‘‘PLMR’’). PLMR systems serve an essential role in a range of industrial, business, land transportation, and public safety activities. These radios are used by companies of all sizes operating in all U.S. business categories, and are often used in support of the licensee’s primary (non-telecommunications) business operations. For the purpose of determining whether a licensee of a PLMR system is a small business as defined by the SBA, we use the broad census category, Wireless Telecommunications Carriers (except Satellite). This definition provides that a small entity is any such entity employing no more than 1,500 199 See generally 220 MHz Service Auction Closes, Public Notice, 14 FCC Rcd 605 (WTB 1998). 200 See FCC Announces It Is Prepared To Grant 654 Phase II 220 MHz Licenses After Final Payment Is Made, Public Notice, 14 FCC Rcd 1085 (WTB 1999). 201 See Phase II 220 MHz Service Spectrum Auction Closes, Public Notice, 14 FCC Rcd 11218 (WTB 1999). 202 See Multi-Radio Service Auction Closes, Public Notice, 17 FCC Rcd 1446 (WTB 2002). 203 See ‘‘Auction of Phase II 220 MHz Service Spectrum Scheduled for June 20, 2007, Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and Other Procedures for Auction 72, Public Notice, 22 FCC Rcd 3404 (2007). 204 See Auction of Phase II 220 MHz Service Spectrum Licenses Closes, Winning Bidders Announced for Auction 72, Down Payments due July 18, 2007, FCC Forms 601 and 602 due July 18, 2007, Final Payments due August 1, 2007, Ten-Day Petition to Deny Period, Public Notice, 22 FCC Rcd 11573 (2007). VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 persons.205 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.206 77. As of March 2010, there were 424,162 PLMR licensees operating 921,909 transmitters in the PLMR bands below 512 MHz. We note that any entity engaged in a commercial activity is eligible to hold a PLMR license, and that any revised rules in this context could therefore potentially impact small entities covering a great variety of industries. 78. Fixed Microwave Services. Microwave services include common carrier,207 private-operational fixed,208 and broadcast auxiliary radio services.209 They also include the Local Multipoint Distribution Service (‘‘LMDS’’),210 the Digital Electronic Message Service (‘‘DEMS’’),211 and the 24 GHz Service,212 where licensees can choose between common carrier and non-common carrier status.213 The Commission has not yet defined a small business with respect to microwave services. For purposes of this IRFA, the Commission will use the SBA’s definition applicable to Wireless Telecommunications Carriers (except satellite)—i.e., an entity with no more than 1,500 persons is considered small.214 For the category of Wireless Telecommunications Carriers (except Satellite), Census data for 2007 shows that there were 1,383 firms that operated that year.215 Of those 1,383, 1,368 had 205 See 13 CFR 121.201, NAICS code 517210. generally 13 CFR 121.201. 207 See 47 CFR part 101, subparts C and I. 208 See id. subparts C and H. 209 Auxiliary Microwave Service is governed by part 74 of Title 47 of the Commission’s rules. See 47 CFR part 74. 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 TV pickups, which relay signals from a remote location back to the studio. 210 See 47 CFR part 101, subpart L. 211 See id. subpart G. 212 See id. 213 See 47 CFR 101.533, 101.1017. 214 13 CFR 121.201, NAICS code 517210. 215 U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 NAICS code 517210 (rel. Oct. 20, 206 See PO 00000 Frm 00070 Fmt 4700 Sfmt 4700 fewer than 100 employees, and 15 firms had more than 100 employees. Thus under this category and the associated small business size standard, the majority of firms can be considered small. The Commission notes that the number of firms does not necessarily track the number of licensees. The Commission estimates that virtually all of the Fixed Microwave licensees (excluding broadcast auxiliary licensees) would qualify as small entities under the SBA definition. 79. 39 GHz Service. The Commission adopted small business size standards for 39 GHz licenses. A ‘‘small business’’ is defined as an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $40 million in the preceding three years.216 A ‘‘very small business’’ is defined as an entity that, together with its affiliates and controlling principals, has average gross revenues of not more than $15 million for the preceding three years.217 The SBA has approved these small business size standards.218 In 2000, the Commission conducted an auction of 2,173 39 GHz licenses. A total of 18 bidders who claimed small or very small business status won 849 licenses. 80. 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.219 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 years.220 An additional small business size standard for ‘‘very small business’’ was added as 2009), https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-fds_name=EC0700A1&-_ skip=700&-ds_name=EC0751SSSZ5&-_lang=en. 216 See Amendment of the Commission’s Rules Regarding the 37.0–38.6 GHz and 38.6–40.0 GHz Bands, ET Docket No. 95–183, Report and Order, 12 FCC Rcd 18600 (1997). 217 Id. 218 See Letter from Aida Alvarez, Administrator, SBA, to Kathleen O’Brien Ham, Chief, Auctions and Industry Analysis Division, WTB, FCC (Feb. 4, 1998); see Letter from Hector Barreto, Administrator, SBA, to Margaret Wiener, Chief, Auctions and Industry Analysis Division, WTB, FCC (Jan. 18, 2002). 219 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, CC Docket No. 92–297, Second Report and Order, Order on Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC Rcd 12545, 12689–90, para. 348 (1997) (‘‘LMDS Second Report and Order’’). 220 See LMDS Second Report and Order, 12 FCC Rcd at 12689–90, para. 348. E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations an entity that, together with its affiliates, has average gross revenues of not more than $15 million for the preceding three years.221 The SBA has approved these small business size standards in the context of LMDS auctions.222 There were 93 winning bidders that qualified as small entities in the LMDS auctions. A total of 93 small and very small business bidders won approximately 277 A Block licenses and 387 B Block licenses. In 1999, the Commission reauctioned 161 licenses; there were 32 small and very small businesses winning that won 119 licenses. 81. 218–219 MHz Service. The first auction of 218–219 MHz Service (previously referred to as the Interactive and Video Data Service or IVDS) licenses resulted in 170 entities winning licenses for 594 Metropolitan Statistical Areas (‘‘MSAs’’).223 Of the 594 licenses, 557 were won by 167 entities qualifying as a small business. For that auction, the Commission defined a small business as an entity that, together with its affiliates, has no more than a $6 million net worth and, after federal income taxes (excluding any carry over losses), has no more than $2 million in annual profits each year for the previous two years.224 In the 218–219 MHz Report and Order and Memorandum Opinion and Order, the Commission revised its small business size standards for the 218–219 MHz Service and 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.225 The Commission defined a ‘‘very small business’’ as an entity that, together with its affiliates and persons or entities that hold interests in such an entity and its affiliates, has average annual gross revenues not exceeding $3 million for the preceding three years.226 The SBA has approved these definitions.227 82. Location and Monitoring Service (‘‘LMS’’). Multilateration LMS systems use non-voice radio techniques to determine the location and status of mobile radio units. For auctions of LMS 221 See id. Alvarez to Phythyon Letter 1998. 223 See ‘‘Interactive Video and Data Service (IVDS) Applications Accepted for Filing,’’ Public Notice, 9 FCC Rcd 6227 (1994). 224 Implementation of Section 309(j) of the Communications Act—Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330 (1994). 225 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). 226 Id. 227 See Alvarez to Phythyon Letter 1998. mstockstill on DSK4VPTVN1PROD with RULES 222 See VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 licenses, the Commission has defined a ‘‘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.228 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.229 These definitions have been approved by the SBA.230 An auction of LMS licenses was conducted in 1999. Of the 528 licenses auctioned, 289 licenses were sold to four small businesses. 83. Rural Radiotelephone Service. The Commission has not adopted a size standard for small businesses specific to the Rural Radiotelephone Service.231 A significant subset of the Rural Radiotelephone Service is the Basic Exchange Telephone Radio System (‘‘BETRS’’).232 For purposes of its analysis of the Rural Radiotelephone Service, the Commission uses the SBA small business size standard for the category Wireless Telecommunications Carriers (except satellite),’’ which is 1,500 or fewer employees.233 Census data for 2007 shows that there were 1,383 firms that operated that year.234 Of those 1,383, 1,368 had fewer than 100 employees, and 15 firms had more than 100 employees. Thus under this category and the associated small business size standard, the majority of firms in the Rural Radiotelephone Service can be considered small. 84. Air-Ground Radiotelephone Service.235 The Commission has previously used the SBA’s small business definition applicable to Wireless Telecommunications Carriers (except Satellite), i.e., an entity employing no more than 1,500 persons.236 There are approximately 100 licensees in the Air-Ground 228 Amendment of Part 90 of the Commission’s Rules to Adopt Regulations for Automatic Vehicle Monitoring Systems, Second Report and Order, 13 FCC Rcd 15182, 15192, para. 20 (1998) (‘‘Automatic Vehicle Monitoring Systems Second Report and Order’’); see also 47 CFR 90.1103. 229 Automatic Vehicle Monitoring Systems Second Report and Order, 13 FCC Rcd at 15192, para. 20; see also 47 CFR 90.1103. 230 See Alvarez Letter 1998. 231 The service is defined in section 22.99 of the Commission’s rules, 47 CFR 22.99. 232 BETRS is defined in sections 22.757 and 22.759 of the Commission’s rules, 47 CFR 22.757 and 22.759. 233 13 CFR 121.201, NAICS code 517210. 234 U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-fds_name=EC0700A1&-_ skip=700&-ds_name=EC0751SSSZ5&-_lang=en. 235 The service is defined in section 22.99 of the Commission’s rules, 47 CFR 22.99. 236 13 CFR 121.201, NAICS codes 517210. PO 00000 Frm 00071 Fmt 4700 Sfmt 4700 46327 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.237 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.238 These definitions were approved by the SBA.239 In 2006, the Commission completed an auction of nationwide commercial Air-Ground Radiotelephone Service licenses in the 800 MHz band (Auction 65). The auction closed with two winning bidders winning two AirGround Radiotelephone Services licenses. Neither of the winning bidders claimed small business status. 85. Aviation and Marine Radio Services. Small businesses in the aviation and marine radio services use a very high frequency (‘‘VHF’’) marine or aircraft radio and, as appropriate, an emergency position-indicating radio beacon (and/or radar) or an emergency locator transmitter. The Commission has not developed a small business size standard specifically applicable to these small businesses. For purposes of this analysis, the Commission uses the SBA small business size standard for the category Wireless Telecommunications Carriers (except satellite),’’ which is 1,500 or fewer employees.240 Census data for 2007 shows that there were 1,383 firms that operated that year.241 Of those 1,383, 1,368 had fewer than 100 employees, and 15 firms had more than 100 employees. Thus under this category and the associated small 237 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). 238 Id. 239 See Letter from Hector V. Barreto, Administrator, SBA, to Gary D. Michaels, Deputy Chief, Auctions and Spectrum Access Division, WTB, FCC (Sept. 19, 2005). 240 13 CFR 121.201, NAICS code 517210. 241 U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-fds_name=EC0700A1&-_ skip=700&-ds_name=EC0751SSSZ5&-_lang=en. E:\FR\FM\03AUR1.SGM 03AUR1 46328 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations business size standard, the majority of firms can be considered small. 86. Offshore Radiotelephone Service. This service operates on several UHF television broadcast channels that are not used for television broadcasting in the coastal areas of states bordering the Gulf of Mexico.242 There are presently approximately 55 licensees in this service. The Commission is unable to estimate at this time the number of licensees that would qualify as small under the SBA’s small business size standard for the category of Wireless Telecommunications Carriers (except Satellite). Under that standard.243 Under that SBA small business size standard, a business is small if it has 1,500 or fewer employees.244 Census data for 2007 shows that there were 1,383 firms that operated that year.245 Of those 1,383, 1,368 had fewer than 100 employees, and 15 firms had more than 100 employees. Thus under this category and the associated small business size standard, the majority of firms can be considered small. 87. 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. The Commission defines a small business for MAS licenses as an entity that has average gross revenues of less than $15 million in the preceding three years.246 A very small business is defined as an entity that, together with its affiliates, has average gross revenues of not more than $3 million for the preceding three years.247 The SBA has approved these definitions.248 The majority of these entities will most likely be licensed in bands where the Commission has implemented a geographic area licensing approach that would require the use of competitive bidding procedures to resolve mutually exclusive applications. The Commission’s licensing database indicates that, as of March 5, 2010, there were over 11,500 MAS station authorizations. In 2001, an auction of 5,104 MAS licenses in 176 EAs was mstockstill on DSK4VPTVN1PROD with RULES 242 This service is governed by subpart I of part 22 of the Commission’s rules. See 47 CFR 22.1001– 22.1037. 243 13 CFR 121.201, NAICS code 517210. 244 Id. 245 U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-fds_name=EC0700A1&_skip=700&-ds_name=EC0751SSSZ5&-_lang=en. 246 See Amendment of the Commission’s Rules Regarding Multiple Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, para. 123 (2000). 247 Id. 248 See Alvarez Letter 1999. VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 conducted.249 Seven winning bidders claimed status as small or very small businesses and won 611 licenses. In 2005, the Commission completed an auction (Auction 59) of 4,226 MAS licenses in the Fixed Microwave Services from the 928/959 and 932/941 MHz bands. Twenty-six winning bidders won a total of 2,323 licenses. Of the 26 winning bidders in this auction, five claimed small business status and won 1,891 licenses. 88. With respect to entities that use, or seek to use, MAS spectrum to accommodate internal communications needs, we note that MAS serves an essential role in a range of industrial, safety, business, and land transportation activities. MAS radios are used by companies of all sizes, operating in virtually all U.S. business categories, and by all types of public safety entities. For the majority of private internal users, the small business size standard developed by the SBA would be more appropriate. The applicable size standard in this instance appears to be that of Wireless Telecommunications Carriers (except Satellite). This definition provides that a small entity is any such entity employing no more than 1,500 persons.250 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. 89. 1.4 GHz Band Licensees. The Commission conducted an auction of 64 1.4 GHz band licenses in the paired 1392–1395 MHz and 1432–1435 MHz bands, and in the unpaired 1390–1392 MHz band in 2007.251 For these licenses, the Commission defined ‘‘small business’’ as an entity that, together with its affiliates and controlling interests, had average gross revenues not exceeding $40 million for the preceding three years, and a ‘‘very small business’’ as an entity that, together with its affiliates and controlling interests, has had average annual gross revenues not exceeding $15 million for the preceding three years.252 Neither of the two winning bidders claimed small business status.253 249 See ‘‘Multiple Address Systems Spectrum Auction Closes,’’ Public Notice, 16 FCC Rcd 21011 (2001). 250 See 13 CFR 121.201, NAICS code 517210. 251 See ‘‘Auction of 1.4 GHz Band Licenses Scheduled for February 7, 2007,’’ Public Notice, 21 FCC Rcd 12393 (WTB 2006); ‘‘Auction of 1.4 GHz Band Licenses Closes; Winning Bidders Announced for Auction No. 69,’’ Public Notice, 22 FCC Rcd 4714 (2007) (‘‘Auction No. 69 Closing PN’’). 252 Auction No. 69 Closing PN, Attachment C. 253 See Auction No. 69 Closing PN. PO 00000 Frm 00072 Fmt 4700 Sfmt 4700 90. 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. For this service, the Commission uses the SBA small business size standard for the category ‘‘Wireless Telecommunications Carriers (except satellite),’’ which is 1,500 or fewer employees.254 To gauge small business prevalence for these cable services we must, however, use the most current census data. Census data for 2007 shows that there were 1,383 firms that operated that year.255 Of those 1,383, 1,368 had fewer than 100 employees, and 15 firms had more than 100 employees. Thus under this category and the associated small business size standard, the majority of firms can be considered small. The Commission notes that the Census’ use of the classifications ‘‘firms’’ does not track the number of ‘‘licenses’’. The Commission believes that there are only two licensees in the 24 GHz band that were relocated from the 18 GHz band, Teligent 256 and TRW, Inc. It is our understanding that Teligent and its related companies have less 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. 91. Future 24 GHz Licensees. With respect to new applicants for licenses in the 24 GHz band, for the purpose of determining eligibility for bidding credits, the Commission established three small business definitions. An ‘‘entrepreneur’’ is defined as an entity that, together with controlling interests and affiliates, has average annual gross revenues for the three preceding years not exceeding $40 million.257 A ‘‘small business’’ 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.258 A ‘‘very small business’’ in the 24 GHz band is defined as an entity that, together with 254 13 CFR 121.201, NAICS code 517210. Census Bureau, 2007 Economic Census, Sector 51, 2007 NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-fds_name=EC0700A1&-_ skip=700&-ds_name=EC0751SSSZ5&-_lang=en.> 256 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. 257 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)(3). 258 24 GHz Report and Order, 15 FCC Rcd at 16967 para. 77; see also 47 CFR 101.538(a)(2). 255 U.S. E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES controlling interests and affiliates, has average gross revenues not exceeding $3 million for the preceding three years.259 The SBA has approved these small business size standards.260 In a 2004 auction of 24 GHz licenses, three winning bidders won seven licenses.261 Two of the winning bidders were very small businesses that won five licenses. 92. Broadband Radio Service and Educational Broadband Service. Broadband Radio Service systems, previously referred to as Multipoint Distribution Service (‘‘MDS’’) and Multichannel Multipoint Distribution Service (‘‘MMDS’’) systems, and ‘‘wireless cable,’’ transmit video programming to subscribers and provide two-way high speed data operations using the microwave frequencies of the Broadband Radio Service (‘‘BRS’’) and Educational Broadband Service (‘‘EBS’’) (previously referred to as the Instructional Television Fixed Service (‘‘ITFS’’).262 In connection with the 1996 BRS auction, the Commission established a small business size standard as an entity that had annual average gross revenues of no more than $40 million in the previous three years.263 The BRS auctions resulted in 67 successful bidders obtaining licensing opportunities for 493 Basic Trading Areas (‘‘BTAs’’). Of the 67 auction winners, 61 met the definition of a small business. BRS also includes licensees of stations authorized prior to the auction. At this time, we estimate that of the 61 small business BRS auction winners, 48 remain small business licensees. In addition to the 48 small businesses that hold BTA authorizations, there are approximately 392 incumbent BRS licensees that are considered small entities.264 After 259 24 GHz Report and Order, 15 FCC Rcd at 16967 para. 77; see also 47 CFR 101.538(a)(1). 260 See Letter to Margaret W. Wiener, Deputy Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, FCC, from Gary M. Jackson, Assistant Administrator, SBA (July 28, 2000). 261 Auction of 24 GHz Service Spectrum Auction Closes, Winning Bidders Announced for Auction 56, Down Payments Due August 16, 2004, Final Payments Due August 30, 2004, Ten-Day Petition to Deny Period, Public Notice, 19 FCC Rcd 14738 (2004). 262 Amendment of Parts 21 and 74 of the Commission’s Rules with Regard to Filing Procedures in the Multipoint Distribution Service and in the Instructional Television Fixed Service and Implementation of Section 309(j) of the Communications Act—Competitive Bidding, MM Docket No. 94–131, PP Docket No. 93–253, Report and Order, 10 FCC Rcd 9589, 9593 para. 7 (1995). 263 47 CFR 21.961(b)(1). 264 47 U.S.C. 309(j). Hundreds of stations were licensed to incumbent MDS licensees prior to implementation of section 309(j) of the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-auction licenses, the applicable standard VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 46329 adding the number of small business auction licensees to the number of incumbent licensees not already counted, we find that there are currently approximately 440 BRS licensees that are defined as small businesses under either the SBA or the Commission’s rules. In 2009, the Commission conducted Auction 86, the sale of 78 licenses in the BRS areas.265 The Commission offered three levels of bidding credits: (i) A bidder with attributed average annual gross revenues that exceed $15 million and do not exceed $40 million for the preceding three years (small business) will receive a 15 percent discount on its winning bid; (ii) a bidder with attributed average annual gross revenues that exceed $3 million and do not exceed $15 million for the preceding three years (very small business) will receive a 25 percent discount on its winning bid; and (iii) a bidder with attributed average annual gross revenues that do not exceed $3 million for the preceding three years (entrepreneur) will receive a 35 percent discount on its winning bid.266 Auction 86 concluded in 2009 with the sale of 61 licenses.267 Of the ten winning bidders, two bidders that claimed small business status won 4 licenses; one bidder that claimed very small business status won three licenses; and two bidders that claimed entrepreneur status won six licenses. 93. In addition, the SBA’s Cable Television Distribution Services small business size standard is applicable to EBS. There are presently 2,032 EBS licensees. All but 100 of these licenses are held by educational institutions. Educational institutions are included in this analysis as small entities.268 Thus, we estimate that at least 1,932 licensees are small businesses. Since 2007, Cable Television Distribution Services have been defined within the broad economic census category of Wired Telecommunications Carriers; that category is defined as follows: ‘‘This industry comprises establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired telecommunications networks. Transmission facilities may be based on a single technology or a combination of technologies.’’ 269 For these services, the Commission uses the SBA small business size standard for the category ‘‘Wireless Telecommunications Carriers (except satellite),’’ which is 1,500 or fewer employees.270 To gauge small business prevalence for these cable services we must, however, use the most current Census data. According to Census Bureau data for 2007, there were a total of 955 firms in this previous category that operated for the entire year.271 Of this total, 939 firms employed 999 or fewer employees, and 16 firms employed 1,000 employees or more.272 Thus, the majority of these firms can be considered small. 94. Television Broadcasting. This Economic Census category ‘‘comprises establishments primarily engaged in broadcasting images together with sound. These establishments operate television broadcasting studios and facilities for the programming and transmission of programs to the public.’’ 273 The SBA has created the following small business size standard for Television Broadcasting firms: Those having $14 million or less in annual receipts.274 The Commission has estimated the number of licensed commercial television stations to be 1,387.275 In addition, according to Commission staff review of the BIA Advisory Services, LLC’s Media Access Pro Television Database on March 28, 2012, about 950 of an estimated 1,300 commercial television stations (or approximately 73 percent) had revenues is SBA’s small business size standard of 1,500 or fewer employees. 265 Auction of Broadband Radio Service (BRS) Licenses, Scheduled for October 27, 2009, Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 86, Public Notice, 24 FCC Rcd 8277 (2009). 266 Id. at 8296. 267 Auction of Broadband Radio Service Licenses Closes, Winning Bidders Announced for Auction 86, Down Payments Due November 23, 2009, Final Payments Due December 8, 2009, Ten-Day Petition to Deny Period, Public Notice, 24 FCC Rcd 13572 (2009). 268 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. 269 U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired Telecommunications Carriers, (partial definition), www.census.gov/naics/2007/ def/ND517110.HTM#N517110. 270 13 CFR 121.201, NAICS code 517210. 271 U.S. Census Bureau, 2007 Economic Census, Subject Series: Information, Table 5, Employment Size of Firms for the United States: 2007, NAICS code 5171102 (issued November 2010). 272 Id. 273 U.S. Census Bureau, 2007 NAICS Definitions, ‘‘515120 Television Broadcasting’’ (partial definition); https://www.census.gov/naics/2007/def/ ND515120.HTM#N515120. 274 13 CFR 121.201, NAICS code 515120 (updated for inflation in 2010). 275 See FCC News Release, ‘‘Broadcast Station Totals as of December 31, 2011,’’ dated January 6, 2012; https://hraunfoss.fcc.gov/edocs_public/ attachmatch/DOC-311837A1.pdf. PO 00000 Frm 00073 Fmt 4700 Sfmt 4700 E:\FR\FM\03AUR1.SGM 03AUR1 46330 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES of $14 million or less.276 We therefore estimate that the majority of commercial television broadcasters are small entities. 95. We note, however, that in assessing whether a business concern qualifies as small under the above definition, business (control) affiliations 277 must be included. Our estimate, therefore, likely overstates the number of small entities that might be affected by our action because the revenue figure on which it is based does not include or aggregate revenues from affiliated companies. In addition, an element of the definition of ‘‘small business’’ is that the entity not be dominant in its field of operation. We are unable at this time to define or quantify the criteria that would establish whether a specific television station is dominant in its field of operation. Accordingly, the estimate of small businesses to which rules may apply does not exclude any television station from the definition of a small business on this basis and is therefore possibly over-inclusive to that extent. 96. In addition, the Commission has estimated the number of licensed noncommercial educational (NCE) television stations to be 396.278 These stations are non-profit, and therefore considered to be small entities.279 97. In addition, there are also 2,528 low power television stations, including Class A stations (LPTV).280 Given the nature of these services, we will presume that all LPTV licensees qualify as small entities under the above SBA small business size standard. 98. Radio Broadcasting. This Economic Census category ‘‘comprises establishments primarily engaged in broadcasting aural programs by radio to the public. Programming may originate in their own studio, from an affiliated network, or from external sources.’’ 281 The SBA has established a small business size standard for this category, which is: Such firms having $7 million 276 We recognize that BIA’s estimate differs slightly from the FCC total given supra. 277 ‘‘[Business concerns] are affiliates of each other when one concern controls or has the power to control the other or a third party or parties controls or has the power to control both.’’ 13 CFR 21.103(a)(1). 278 See FCC News Release, ‘‘Broadcast Station Totals as of December 31, 2011,’’ dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/ Daily_Business/2012/db0106/DOC-311837A1.pdf. 279 See generally 5 U.S.C. 601(4), (6). 280 See FCC News Release, ‘‘Broadcast Station Totals as of December 31, 2011,’’ dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/ Daily_Business/2012/db0106/DOC-311837A1.pdf. 281 U.S. Census Bureau, 2007 NAICS Definitions, ‘‘515112 Radio Stations’’; https://www.census.gov/ naics/2007/def/ND515112.HTM#N515112. VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 or less in annual receipts.282 According to Commission staff review of BIA Advisory Services, LLC’s Media Access Pro Radio Database on March 28, 2012, about 10,759 (97%) of 11,102 commercial radio stations had revenues of $7 million or less. Therefore, the majority of such entities are small entities. 99. We note, however, that in assessing whether a business concern qualifies as small under the above size standard, business affiliations must be included.283 In addition, to be determined to be a ‘‘small business,’’ the entity may not be dominant in its field of operation.284 We note that it is difficult at times to assess these criteria in the context of media entities, and our estimate of small businesses may therefore be over-inclusive. 100. Auxiliary, Special Broadcast and Other Program Distribution Services. This service involves a variety of transmitters, generally used to relay broadcast programming to the public (through translator and booster stations) or within the program distribution chain (from a remote news gathering unit back to the station). The Commission has not developed a definition of small entities applicable to broadcast auxiliary licensees. The applicable definitions of small entities are those, noted previously, under the SBA rules applicable to radio broadcasting stations and television broadcasting stations.285 101. The Commission estimates that there are approximately 6,099 FM translators and boosters.286 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 282 13 CFR 121.201, NAICS code 515112 (updated for inflation in 2010). 283 ‘‘Concerns and entities are affiliates of each other when one controls or has the power to control the other, or a third party or parties controls or has the power to control both. It does not matter whether control is exercised, so long as the power to control exists.’’ 13 CFR 121.103(a)(1) (an SBA regulation). 284 13 CFR 121.102(b) (an SBA regulation). 285 13 CFR 121.201, NAICS codes 515112 and 515120. 286 See FCC News Release, ‘‘Broadcast Station Totals as of December 31, 2011,’’ dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/ Daily_Business/2012/db0106/DOC-311837A1.pdf. PO 00000 Frm 00074 Fmt 4700 Sfmt 4700 likely have annual revenues that exceed the SBA maximum to be designated as a small business ($7.0 million for a radio station or $14.0 million for a TV station). Furthermore, they do not meet the Small Business Act’s definition of a ‘‘small business concern’’ because they are not independently owned and operated.287 102. Cable Television Distribution Services. Since 2007, these services have been defined within the broad economic census category of Wired Telecommunications Carriers; that category is defined as follows: ‘‘This industry comprises establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired telecommunications networks. Transmission facilities may be based on a single technology or a combination of technologies.’’ 288 The SBA has developed a small business size standard for this category, which is: All such firms having 1,500 or fewer employees. Census data for 2007 shows that there were 1,383 firms that operated that year.289 Of those 1,383, 1,368 had fewer than 100 employees, and 15 firms had more than 100 employees. Thus under this category and the associated small business size standard, the majority of such firms can be considered small. 103. 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.290 Industry data indicate that, of 1,076 cable operators nationwide, all but eleven are small under this size standard.291 In addition, under the 287 See 15 U.S.C. 632. Census Bureau, 2007 NAICS Definitions, 517110 Wired Telecommunications Carriers, (partial definition), https://www.census.gov/naics/ 2007/def/ND517110.HTM#N517110 (last visited Oct. 21, 2009). 289 U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-fds_name=EC0700A1&-_ skip=700&-ds_name=EC0751SSSZ5&-_lang=en. 290 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). 291 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 288 U.S. E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES Commission’s rules, a ‘‘small system’’ is a cable system serving 15,000 or fewer subscribers.292 Industry data indicate that, of 6,635 systems nationwide, 5,802 systems have under 10,000 subscribers, and an additional 302 systems have 10,000–19,999 subscribers.293 Thus, under this second size standard, most cable systems are small. 104. 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.’’ 294 The Commission has determined that an operator serving fewer than 677,000 subscribers shall be deemed a small operator, if its annual revenues, when combined with the total annual revenues of all its affiliates, do not exceed $250 million in the aggregate.295 Industry data indicate that, of 1,076 cable operators nationwide, all but ten are small under this size standard.296 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,297 and therefore we are unable to estimate more accurately the number of cable system operators that would qualify as small under this size standard. 105. Open Video Systems. Open Video Service (OVS) systems provide subscription services.298 The open video system (‘‘OVS’’) framework was Factbook 2006, ‘‘Ownership of Cable Systems in the United States,’’ pages D–1805 to D–1857. 292 47 CFR 76.901(c). 293 Warren Communications News, Television & Cable Factbook 2008, ‘‘U.S. Cable Systems by Subscriber Size,’’ page F–2 (data current as of Oct. 2007). The data do not include 851 systems for which classifying data were not available. 294 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1–3. 295 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). 296 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. 297 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). 298 See 47 U.S.C. 573. VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 established in 1996, and is one of four statutorily recognized options for the provision of video programming services by local exchange carriers.299 The OVS framework provides opportunities for the distribution of video programming other than through cable systems. Because OVS operators provide subscription services,300 OVS falls within the SBA small business size standard covering cable services, which is ‘‘Wired Telecommunications Carriers.’’ 301 The SBA has developed a small business size standard for this category, which is: All such firms having 1,500 or fewer employees. To gauge small business prevalence for the OVS service, the Commission relies on data currently available from the U.S. Census for the year 2007. According to that source, there were 3,188 firms that in 2007 were Wired Telecommunications Carriers. Of these, 3,144 operated with less than 1,000 employees, and 44 operated with more than 1,000 employees. However, as to the latter 44 there is no data available that shows how many operated with more than 1,500 employees. Based on this data, the majority of these firms can be considered small.302 In addition, we note that the Commission has certified some OVS operators, with some now providing service.303 Broadband service providers (‘‘BSPs’’) are currently the only significant holders of OVS certifications or local OVS franchises.304 The Commission does not have financial or employment information regarding the entities authorized to provide OVS, some of which may not yet be operational. Thus, at least some of the OVS operators may qualify as small entities. The Commission further notes that it has certified approximately 45 OVS operators to serve 75 areas, and some of these are currently providing service.305 Affiliates of Residential Communications Network, Inc. (RCN) received approval to operate OVS systems in New York City, Boston, Washington, DC, and other areas. RCN 299 47 U.S.C. 571(a)(3)–(4). See 13th Annual Report, 24 FCC Rcd at 606, para. 135. 300 See 47 U.S.C. 573. 301 U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired Telecommunications Carriers, https:// www.census.gov/naics/2007/def/ND517110.HTM# N517110. 302 See https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-fds_name=EC0700A1&-geo_id=&-_ skip=600&-ds_name=EC0751SSSZ5&-_lang=en. 303 A list of OVS certifications may be found at https://www.fcc.gov/mb/ovs/csovscer.html. 304 See 13th Annual Report, 24 FCC Rcd at 606– 07 para. 135. BSPs are newer firms that are building state-of-the-art, facilities-based networks to provide video, voice, and data services over a single network. 305 See https://www.fcc.gov/mb/ovs/csovscer.html (current as of February 2007). PO 00000 Frm 00075 Fmt 4700 Sfmt 4700 46331 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 44 OVS operators (those remaining) might qualify as small businesses that may be affected by the rules and policies adopted herein. 106. Cable Television Relay Service. The industry in which Cable Television Relay Services operate comprises establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired telecommunications networks. Transmission facilities may be based on a single technology or a combination of technologies. Establishments in this industry use the wired telecommunications network facilities that they operate to provide a variety of services, such as wired telephony services, including VoIP services; wired (cable) audio and video programming distribution; and wired broadband Internet services. By exception, establishments providing satellite television distribution services using facilities and infrastructure that they operate are included in this industry.306 The category designated by the SBA for this industry is ‘‘Wired Telecommunications Carriers.’’ 307 The SBA has developed a small business size standard for this category, which is: All such firms having 1,500 or fewer employees. According to Census Bureau data for 2007, Census data for 2007 shows 3,188 firms in this category.308 Of these 3,188 firms, only 44 had 1,000 or more employees. While we could not find precise Census data on the number of firms with in the group with 1,500 or fewer employees, it is clear that at least 3,144 firms with fewer than 1,000 employees would be in that group. On this basis, the Commission estimates that a substantial majority of the providers of interconnected VoIP, non306 U.S. Census Bureau, 2007 NAICS Definitions, ‘‘517110 Wired Telecommunications Carriers’’ (partial definition); https://www.census.gov/naics/ 2007/def/ND517110.HTM#N517110. 307 13 CFR 121.201, NAICS code 517110. 308 https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-_skip=600&-ds_name= EC0751SSSZ5&-_lang=en. E:\FR\FM\03AUR1.SGM 03AUR1 46332 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES interconnected VoIP, or both in this category, are small.309 107. 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 defines 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.310 These definitions were approved by the SBA.311 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.312 Eight of the ten winning bidders claimed small business status and won 144 of the licenses. The Commission also held an auction of MVDDS licenses on December 7, 2005 (Auction 63). Of the three winning bidders who won 22 licenses, two winning bidders, winning 21 of the licenses, claimed small business status.313 309 Id. As noted in para. 18 above with regard to the distinction between manufacturers of equipment used to provide interconnected VoIP and manufactures of equipment to provide noninterconnected VoIP, our estimates of the number of the number of providers of non-interconnected VoIP (and the number of small entities within that group) are likely overstated because we could not draw in the data a distinction between such providers and those that provide interconnected VoIP. However, in the absence of more accurate data, we present these figures to provide as thorough an analysis of the impact on small entities as we can at this time. 310 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). 311 See Letter from Hector V. Barreto, Administrator, U.S. Small Business Administration, to Margaret W. Wiener, Chief, Auctions and Industry Analysis Division, WTB, FCC (Feb. 13, 2002). 312 See ‘‘Multichannel Video Distribution and Data Service Auction Closes,’’ Public Notice, 19 FCC Rcd 1834 (2004). 313 See ‘‘Auction of Multichannel Video Distribution and Data Service Licenses Closes; VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 108. Amateur Radio Service. These licensees are held by individuals in a noncommercial capacity; these licensees are not small entities. 109. Personal Radio Services. Personal radio services provide shortrange, low power radio for personal communications, radio signaling, and business communications not provided for in other services. The Personal Radio Services include spectrum licensed under Part 95 of our rules.314 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’’).315 There are a variety of methods used to license the spectrum in these rule parts, from licensing by rule, to conditioning operation on successful completion of a required test, to site-based licensing, to geographic area licensing. Under the RFA, the Commission is required to make a determination of which small entities are directly affected by the rules being proposed. Since all such entities are wireless, we apply the definition of Wireless Telecommunications Carriers (except Satellite), pursuant to which a small entity is defined as employing 1,500 or fewer persons.316 Many of the licensees in these services are individuals, and thus are not small entities. In addition, due to the mostly unlicensed and shared nature of the spectrum utilized in many of these services, the Commission lacks direct information upon which to base an estimation of the number of small entities under an SBA definition that might be directly affected by our action. 110. Public Safety Radio Services. Public Safety radio services include police, fire, local government, forestry conservation, highway maintenance, and emergency medical services.317 Winning Bidders Announced for Auction No. 63,’’ Public Notice, 20 FCC Rcd 19807 (2005). 314 47 CFR part 90. 315 The Citizens Band Radio Service, General Mobile Radio Service, Radio Control Radio Service, Family Radio Service, Wireless Medical Telemetry Service, Medical Implant Communications Service, Low Power Radio Service, and Multi-Use Radio Service are governed by subpart D, subpart A, subpart C, subpart B, subpart H, subpart I, subpart G, and subpart J, respectively, of part 95 of the Commission’s rules. See generally 47 CFR part 95. 316 13 CFR 121.201, NAICS Code 517210. 317 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 PO 00000 Frm 00076 Fmt 4700 Sfmt 4700 There are a total of approximately 127,540 licensees in these services. Governmental entities 318 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.319 111. Internet Service Providers. Internet Service Providers, Web Portals and Other Information Services. In 2007, the SBA recognized two new small business economic census categories. They are (1) Internet Publishing and Broadcasting and Web Search Portals,320 and (2) All Other Information Services.321 112. Internet Service Providers. The 2007 Economic Census places these firms, whose services might include voice over Internet protocol (VoIP), in either of two categories, depending on whether the service is provided over the provider’s own telecommunications facilities (e.g., cable and DSL ISPs), or over client-supplied telecommunications connections (e.g., dial-up ISPs). The former are within the category of Wired Telecommunications Carriers,322 which has an SBA small business size standard of 1,500 or fewer employees.323 These are also labeled ‘‘broadband.’’ The latter are within the (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 is presently comprised of approximately 41,000 licensees that are state, county, or municipal entities that use the radio for official purposes not covered by other public safety services. There are approximately 7,000 licensees within the forestry service which is comprised of licensees from state departments of conservation and private forest organizations who set up communications networks among fire lookout towers and ground crews. The approximately 9,000 state and local governments are licensed for highway maintenance service to 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. 318 47 CFR 1.1162. 319 5 U.S.C. 601(5). 320 13 CFR 121.201, NAICS code 519130 (establishing a $500,000 revenue ceiling). 321 13 CFR 121.201, NAICS code 519190 (establishing a $6.5 million revenue ceiling). 322 U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired Telecommunications Carriers, https://www.census.gov/naics/2007/def/ND517110. HTM#N517110. 323 13 CFR 121.201, NAICS code 517110. E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES category of All Other Telecommunications,324 which has a size standard of annual receipts of $25 million or less.325 These are labeled non-broadband. 113. The most current Economic Census data for all such firms are 2007 data, which are detailed specifically for ISPs within the categories above. For the first category, the data show that 396 firms operated for the entire year, of which 159 had nine or fewer employees.326 For the second category, the data show that 1,682 firms operated for the entire year.327 Of those, 1,675 had annual receipts below $25 million per year, and an additional two had receipts of between $25 million and $49,999,999. Consequently, we estimate that the majority of ISP firms are small entities. 114. Internet Publishing and Broadcasting and Web Search Portals. This industry comprises establishments primarily engaged in (1) publishing and/ or broadcasting content on the Internet exclusively or (2) operating Web sites that use a search engine to generate and maintain extensive databases of Internet addresses and content in an easily searchable format (and known as Web search portals). The publishing and broadcasting establishments in this industry do not provide traditional (non-Internet) versions of the content that they publish or broadcast. They provide textual, audio, and/or video content of general or specific interest on the Internet exclusively. Establishments known as Web search portals often provide additional Internet services, such as email, connections to other Web sites, auctions, news, and other limited content, and serve as a home base for Internet users.328 The SBA deems businesses in this industry with 500 or fewer employees small.329 According to Census Bureau data for 2007, there were 2,705 firms that provided one or more of these services for that entire year. Of 324 U.S. Census Bureau, 2007 NAICS Definitions, ‘‘517919 All Other Telecommunications,’’ https:// www.census.gov/naics/2007/def/ND517919.HTM# N517919. 325 13 CFR 121.201, NAICS code 517919 (updated for inflation in 2008). 326 U.S. Census Bureau, 2007 Economic Census, Subject Series: Information, ‘‘Establishment and Firm Size,’’ NAICS code 5171103 (rel. Nov. 19, 2010) (employment size). The data show only two categories within the whole: The categories for 1–4 employees and for 5–9 employees. 327 U.S. Census Bureau, 2007 Economic Census, Subject Series: Information, ‘‘Establishment and Firm Size,’’ NAICS code 5179191 (rel. Nov. 19, 2010) (receipts size). 328 https://www.census.gov/cgi-bin/sssd/naics/ naicsrch?code=519130&search=2007%20NAICS %20Search 329 https://www.sba.gov/sites/default/files/Size_ Standards_Table.pdf. VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 these, 2,682 operated with less than 500 employees and 13 operated with to 999 employees.330 Consequently, we estimate the majority of these firms are small entities that may be affected by our proposed actions. IV. Description of Projected Reporting, Recordkeeping and Other Compliance Requirements 115. 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, and pay a regulatory fee based on the number of licenses or call signs.331 In some instances, licensees or regulatees may decide to submit an FCC Form 159 Remittance Advice. Interstate telephone service providers must compute their annual regulatory fee based on their interstate and international end-user revenue using information they already supply to the Commission in compliance with the Form 499–A, Telecommunications Reporting Worksheet. Compliance with the fee schedule will require some regulatees to tabulate the number of units (e.g., cellular telephones, pagers, cable TV subscribers) they have in service. Regulatees 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 submit a regulatory fee payment, and it can be completed by the employees 330 https://factfinder.census.gov/servlet/IBQ Table?_bm=y&-geo_id=&-_skip=1000&-ds_name= EC0751SSSZ5&-_lang=en. 331 See 47 CFR 1.1162 for the general exemptions from regulatory fees. E.g., Amateur radio licensees (except applicants for vanity call signs) and operators in other non-licensed services (e.g., Personal Radio, part 15, ship and aircraft). Governments and non-profit (exempt under section 501(c) of the Internal Revenue Code) entities are exempt from payment of regulatory fees and need not submit payment. Non-commercial educational broadcast licensees are exempt from regulatory fees as are licensees of auxiliary broadcast services such as low power auxiliary stations, television auxiliary service stations, remote pickup stations and aural broadcast auxiliary stations where such licenses are used in conjunction with commonly owned 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. PO 00000 Frm 00077 Fmt 4700 Sfmt 4700 46333 responsible for an entity’s business records. 116. As discussed previously in this Report and Order, the Commission concluded in its FY 2009 regulatory fee cycle that regulatees filing their annual regulatory fee payments must begin the process by entering the Commission’s Fee Filer system with a valid FRN and password. In some instances, it will be necessary to use a specific FRN and password that is linked to a particular regulatory fee bill. Going forward, the submission of hardcopy Form 159 documents will not be permitted for making a regulatory fee payment during the regulatory fee cycle. By requiring regulatees to use Fee Filer to begin the regulatory fee payment process, errors resulting from illegible handwriting on hardcopy Form 159’s will be reduced, and the Commission will be able to create an electronic record of regulatee payment attributes that are more easily traceable than payments that were previously mailed in with a hardcopy Form 159. 117. 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.332 If payment is not received, new or pending applications may be dismissed, and existing authorizations may be subject to rescission.333 Further, in accordance with the DCIA, federal agencies may bar a person or entity from obtaining a federal loan or loan insurance guarantee if that person or entity fails to pay a delinquent debt owed to any federal agency.334 Nonpayment of regulatory fees is a debt owed to the United States pursuant to 31 U.S.C. 3711 et seq., and the DCIA. Appropriate enforcement measures, as well as administrative and judicial remedies, may be exercised by the Commission. Debts owed to the Commission may result in a person or entity being denied a federal loan or loan guarantee pending before another federal agency until such obligations are paid.335 118. The Commission’s rules currently provide for relief in exceptional circumstances. Persons or entities may request a waiver, reduction or deferment of payment of the regulatory fee.336 However, timely submission of the required regulatory fee must accompany requests for 332 47 CFR 1.1164. CFR 1.1164(c). 334 Public Law 104–134, 110 Stat. 1321 (1996). 335 31 U.S.C. 7701(c)(2)(B). 336 47 CFR 1.1166. 333 47 E:\FR\FM\03AUR1.SGM 03AUR1 46334 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations waivers or reductions. This will avoid any late payment penalty if the request is denied. The fee will be refunded if the request is granted. In exceptional and compelling instances (e.g. where payment of the regulatory fee along with the waiver or reduction request could result in reduction of service to a community or other financial hardship to the regulatee), 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 119. The RFA requires an agency to describe any significant alternatives that it has considered in reaching its approach, which may include the following four alternatives, among others: (1) The establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; (2) the clarification, consolidation, or simplification of compliance or reporting requirements under the rule for small entities; (3) the use of performance, rather than design, standards; and (4) an exemption from coverage of the rule, or any part thereof, for small entities.337 120. In the FY 2012 Regulatory Fee Notice of Proposed Rulemaking, 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. For example, the Commission has considered creating bills for all fee categories so that payments that are received will liquidate more quickly, thereby reducing errors in processing and improving efficiency. The Commission has also considered ways to notify small entities electronically regarding regulatory fee updates. We received no comments specifically in response to the IRFA. 121. Several categories of licensees and regulatees are exempt from payment of regulatory fees, such as government entities, tribal nations, tax exempt (nonprofit) entities, amateur radio operator licensees, and entities whose total sum owed in regulatory fees is less than $10. In addition, the Commission’s waiver procedures also provide regulatees, including small entity regulatees, relief in exceptional circumstances such as financial hardship. We note that small entities in particular should be assisted by the Commission’s electronic filing and payment system (‘‘Fee Filer’’), which pre-loads payment data to minimize the time spent by entities searching for payment information. The Commission’s Fee Filer system also permits entities to make fee payment in a variety of ways, even on the due date of regulatory fees. VI. Report to Congress 122. The Commission will send a copy of this Report and Order, including this FRFA, in a report to be sent to Congress and the Government Accountability Office pursuant to the Congressional Review Act.338 In addition, the Commission will send a copy of this Report and Order, including the FRFA, to the Chief Counsel for Advocacy of the Small Business Administration. A copy of this Report and Order and FRFA (or summaries mstockstill on DSK4VPTVN1PROD with RULES 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 Pt. 101) (Private): (a) New, Renew/Mod (FCC 601 & 159) .............................. (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) (c) Renewal Only (FCC 601 & 159) .................................... (d) Renewal Only (Electronic Filing) (FCC 601 & 159) ....... 3. 218–219 MHz Service: (a) New, Renew/Mod (FCC 601 & 159) .............................. (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) U.S.C. 603. 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is contained in Title II, section 251, of 338 See VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 VII. Ordering Clauses 123. Accordingly, it is ordered that, pursuant to sections 4(i) and (j), 9, and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 159, and 303(r), this Report and Order is hereby adopted. 124. It is further ordered that the Commission’s Consumer and Governmental Affairs Bureau, Reference Information Center, shall send a copy of this Report and Order, including the Final Regulatory Flexibility Analysis in Table F, to the Chief Counsel for Advocacy of the U.S. Small Business Administration. List of Subjects in 47 CFR Part 1 Practice and procedures. Federal Communications Commission. Sheryl D. Todd, Deputy Secretary. Rule Changes For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR part 1 as follows: PART 1—PRACTICE AND PROCEDURE 1. The authority citation for part 1 continues to read as follows: ■ Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 155, 157, 225, 303(r), 309. 2. Section 1.1152 is revised to read as follows: ■ § 1.1152 Schedule of annual regulatory fees and filing locations for wireless radio services. Fee amount 1 Exclusive use services (per license) 337 5 thereof) will also be published in the Federal Register.339 Address $35.00 35.00 35.00 35.00 FCC, FCC, FCC, FCC, P.O. P.O. P.O. P.O. Box Box Box Box 979097, 979097, 979097, 979097, St. St. St. St. Louis, Louis, Louis, Louis, MO MO MO MO 63197–9000. 63197–9000. 63197–9000. 63197–9000. 35.00 35.00 35.00 35.00 FCC, FCC, FCC, FCC, P.O. P.O. P.O. P.O. Box Box Box Box 979097, 979097, 979097, 979097, St. St. St. St. Louis, Louis, Louis, Louis, MO MO MO MO 63197–9000. 63197–9000. 63197–9000. 63197–9000. 20.00 20.00 20.00 20.00 FCC, FCC, FCC, FCC, P.O. P.O. P.O. P.O. Box Box Box Box 979097, 979097, 979097, 979097, St. St. St. St. Louis, Louis, Louis, Louis, MO MO MO MO 63197–9000. 63197–9000. 63197–9000. 63197–9000. 70.00 70.00 FCC, P.O. Box 979097, St. Louis, MO 63197–9000. FCC, P.O. Box 979097, St. Louis, MO 63197–9000. the CWAAA; see Public Law 104–121, Title II, section 251, 110 Stat. 868. 339 See 5 U.S.C. 604(b). PO 00000 Frm 00078 Fmt 4700 Sfmt 4700 E:\FR\FM\03AUR1.SGM 03AUR1 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations Fee amount 1 Exclusive use services (per license) (c) Renewal Only (FCC 601 & 159) .................................... (d) Renewal Only (Electronic Filing) (FCC 601 & 159) ....... 4. Shared Use Services: Land Mobile (Frequencies Below 470 MHz—except 220 MHz): (a) New, Renew/Mod (FCC 601 & 159) .............................. (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) (c) Renewal Only (FCC 601 & 159) .................................... (d) Renewal Only (Electronic Filing) (FCC 601 & 159) ....... General Mobile Radio Service: (a) New, Renew/Mod (FCC 605 & 159) .............................. (b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159) (c) Renewal Only (FCC 605 & 159) .................................... (d) Renewal Only (Electronic Filing) (FCC 605 & 159) ....... Rural Radio (Part 22): (a) New, Additional Facility, Major Renew/Mod (Electronic Filing) (FCC 601 & 159). (b) Renewal, Minor Renew/Mod (Electronic Filing) (FCC 601 & 159). Marine Coast: (a) New Renewal/Mod (FCC 601 & 159) ............................ (b) 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) .................................... (9) 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) ....... 5. Amateur Vanity Call Signs: (a) Initial or Renew (FCC 605 & 159) ................................. (b) Initial or Renew (Electronic Filing) (FCC 605 & 159) .... 6. CMRS Cellular/Mobile Services (per unit) (FCC 159) ............ 7. CMRS Messaging Services (per unit) (FCC 159) .................. 8. Broadband Radio Service (formerly MMDS and MDS) .......... 9. Local Multipoint Distribution Service ...................................... 46335 Address 70.00 70.00 FCC, P.O. Box 979097, St. Louis, MO 63197–9000. FCC, P.O. Box 979097, St. Louis, MO 63197–9000. 15.00 15.00 15.00 15.00 FCC, FCC, FCC, FCC, P.O. P.O. P.O. P.O. Box Box Box Box 979097, 979097, 979097, 979097, St. St. St. St. Louis, Louis, Louis, Louis, MO MO MO MO 63197–9000. 63197–9000. 63197–9000. 63197–9000. 5.00 5.00 5.00 5.00 FCC, FCC, FCC, FCC, P.O. P.O. P.O. P.O. Box Box Box Box 979097, 979097, 979097, 979097, St. St. St. St. Louis, Louis, Louis, Louis, MO MO MO MO 63197–9000. 63197–9000. 63197–9000. 63197–9000. 15.00 FCC, P.O. Box 979097, St. Louis, MO 63197–9000. 15.00 FCC, P.O. Box 979097, St. Louis, MO 63197–9000. 50.00 50.00 FCC, P.O. Box 979097, St. Louis, MO 63197–9000. FCC, P.O. Box 979097, St. Louis, MO 63197–9000. 50.00 50.00 FCC, P.O. Box 979097, St. Louis, MO 63197–9000. FCC, P.O. Box 979097, St. Louis, MO 63197–9000. 15.00 15.00 FCC, P.O. Box 979097, St. Louis, MO 63197–9000. FCC, P.O. Box 979097, St. Louis, MO 63197–9000. 15.00 15.00 FCC, P.O. Box 979097, St. Louis, MO 63197–9000. FCC, P.O. Box 979097, St. Louis, MO 63197–9000. 10.00 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197–9000. FCC, P.O. Box 979097, St. Louis, MO 63197–9000. 10.00 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197–9000. FCC, P.O. Box 979097, St. Louis, MO 63197–9000. 10.00 10.00 10.00 10.00 FCC, FCC, FCC, FCC, P.O. P.O. P.O. P.O. Box Box Box Box 979097, 979097, 979097, 979097, St. St. St. St. Louis, Louis, Louis, Louis, MO MO MO MO 63197–9000. 63197–9000. 63197–9000. 63197–9000. 1.50 1.50 2 .17 3 .08 475.00 475.00 FCC, FCC, FCC, FCC, FCC, FCC, P.O. P.O. P.O. P.O. P.O. P.O. Box Box Box Box Box Box 979097, 979097, 979097, 979097, 979097, 979097, St. St. St. St. St. St. Louis, Louis, Louis, Louis, Louis, Louis, MO MO MO MO MO MO 63197–9000. 63197–9000. 63197–9000. 63197–9000. 63197–9000. 63197–9000. 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 section 1.1157(b) of this chapter. 3 These are standard fees that are to be paid in accordance with section 1.1157(b) of this chapter. 3. Section 1.1153 is revised to read as follows: ■ § 1.1153 Schedule of annual regulatory fees and filing locations for mass media services. mstockstill on DSK4VPTVN1PROD with RULES Fee amount 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: VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 PO 00000 Frm 00079 $725 1,475 2,200 3,300 4,775 7,350 8,825 Fmt 4700 Sfmt 4700 Address FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000. E:\FR\FM\03AUR1.SGM 03AUR1 46336 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations Fee amount < = 25,000 population .......................................................... 25,001–75,000 population 75,001–150,000 population 150,001–500,000 population 500,001–1,200,000 population 1,200,001–3,000,000 population >3,000,000 population 3. AM Class C: < = 25,000 population .......................................................... 25,001–75,000 population 75,001–150,000 population 150,001–500,000 population 500,001–1,200,000 population 1,200,001–3,000,000 population >3,000,000 population 4. AM Class D: < = 25,000 population .......................................................... 25,001–75,000 population 75,001–150,000 population 150,001–500,000 population 500,001–1,200,000 population 1,200,001–3,000,000 population >3,000,000 population 5. AM Construction Permit .......................................................... 6. FM Classes A, B1 and C3: < = 25,000 population .......................................................... 25,001–75,000 population 75,001–150,000 population 150,001–500,000 population 500,001–1,200,000 population 1,200,001–3,000,000 population >3,000,000 population 7. FM Classes B, C, C0, C1 and C2: < = 25,000 population .......................................................... 25,001–75,000 population 75,001–150,000 population 150,001–500,000 population 500,001–1,200,000 population 1,200,001–3,000,000 population >3,000,000 population 8. FM Construction Permits ........................................................ TV (47 CFR, part 73) VHF Commercial: 1. Markets 1 thru 10 ............................................................ 2. Markets 11 thru 25 .......................................................... 3. Markets 26 thru 50 .......................................................... 4. Markets 51 thru 100 ........................................................ 5. Remaining Markets .......................................................... 6. Construction Permits ....................................................... UHF Commercial: 1. Markets 1 thru 10 ............................................................ 600 1,225 1,525 2,600 3,975 6,100 7,325 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000. 550 850 1,125 1,675 2,800 4,200 5,325 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000. 625 950 1,600 1,900 3,175 5,075 6,350 550 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000. FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000. 700 1,425 1,950 3,025 4,800 7,800 9,950 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000. 875 1,550 2,875 3,750 5,525 8,850 11,500 700 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000. FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000. 80,075 73,475 39,800 20,925 5,825 5,825 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000. 35,350 FCC, UHF Commercial, P.O. Box 979084, St. Louis, MO 63197–9000. 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 ....................................................................... 32,625 21,925 12,750 3,425 3,425 2. Construction Permits ....................................................... Low Power TV, Class A TV, TV/FM Translator, & TV/FM Booster (47 CFR part 74). Broadcast Auxiliary ..................................................................... mstockstill on DSK4VPTVN1PROD with RULES Address 895 385 4. Section 1.1154 is revised to read as follows: ■ 1,425 10 FCC Satellite TV, P.O. Box 979084, St. Louis, MO 63197– 9000. FCC, Low Power, P.O. Box 979084, St. Louis, MO 63197– 9000. FCC, Auxiliary, P.O. Box 979084, St. Louis, MO 63197–9000. § 1.1154 Schedule of annual regulatory charges and filing locations for common carrier services. Fee amount Address Radio Facilities: VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 PO 00000 Frm 00080 Fmt 4700 Sfmt 4700 E:\FR\FM\03AUR1.SGM 03AUR1 46337 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations Fee amount 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: ■ $20.00 Address FCC, P.O. Box 97097, St. Louis, MO 63197–9000. .00375 FCC, Carriers, P.O. Box 979084, St. Louis, MO 63197–9000. § 1.1155 Schedule of regulatory fees and filing locations for cable television services. Fee amount 1. Cable Television Relay Service ............................................. 2. Cable TV System (per subscriber) ........................................ 6. Section 1.1156 is revised to read as follows: ■ $475 Address FCC, Cable, P.O. Box 979084, St. Louis, MO 63197–9000. .95 § 1.1156 Schedule of regulatory fees and filing locations for international services. (a) The following schedule applies for the listed services: Fee category Fee amount Space Stations (Geostationary Orbit) ......................................... $132,875 Space Stations (Non-Geostationary Orbit) ................................. 143,150 Earth Stations: Transmit/Receive & Transmit only (per authorization or registration). 275 (b)(1) International Terrestrial and Satellite. Regulatory fees for International Bearer Circuits are to be paid by facilities-based common carriers that have active (used or leased) international bearer circuits as of December 31 of the prior year in any terrestrial or satellite transmission facility for the provision of service to an end user or resale carrier, which Address FCC, International, P.O. Box 979084, St. Louis, MO 63197– 9000. FCC, International, P.O. Box 979084, St. Louis, MO 63197– 9000. FCC, International, P.O. Box 979084, St. Louis, MO 63197– 9000. includes active circuits to themselves or to their affiliates. In addition, noncommon carrier satellite operators must pay a fee for each circuit sold or leased to any customer, including themselves or their affiliates, other than an international common carrier authorized by the Commission to provide U.S. international common carrier services. ‘‘Active circuits’’ for these purposes include backup and redundant circuits. In addition, whether circuits are used specifically for voice or data is not relevant in determining that they are active circuits. (2) The fee amount, per active 64 KB circuit or equivalent will be determined for each fiscal year. Payment, if mailed, shall be sent to: FCC, International, P.O. Box 979084, St. Louis, MO 63197–9000. International Terrestrial and Satellite (capacity as of December 31, 2011) Fee amount Address Terrestrial Common Carrier Satellite Common Carrier Satellite Non-Common Carrier. $0.26 per 64 KB Circuit ...... FCC, International, P.O. Box 979084, St. Louis, MO 63197–9000. (c) Submarine cable. Regulatory fees for submarine cable systems will be paid annually, per cable landing license, for all submarine cable systems operating as of December 31 of the prior year. The fee amount will be determined by the Commission for each fiscal year. Payment, if mailed, shall be sent to: mstockstill on DSK4VPTVN1PROD with RULES Submarine cable systems (capacity as of Dec. 31, 2011) Fee amount <2.5 Gbps .......................................................................... 2.5 Gbps or greater, but less than 5 Gbps ....................... 5 Gbps or greater, but less than 10 Gbps ........................ 10 Gbps or greater, but less than 20 Gbps ...................... 20 Gbps or greater ............................................................ VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 FCC, International, P.O. Box 979084, St. Louis, MO 63197–9000. PO 00000 Frm 00081 Address $13,300 26,600 53,200 106,375 212,750 Fmt 4700 FCC, FCC, FCC, FCC, FCC, Sfmt 4700 International, International, International, International, International, P.O. P.O. P.O. P.O. P.O. Box Box Box Box Box E:\FR\FM\03AUR1.SGM 979084, 979084, 979084, 979084, 979084, 03AUR1 St. St. St. St. St. Louis, Louis, Louis, Louis, Louis, MO MO MO MO MO 63197–9000, 63197–9000. 63197–9000. 63197–9000. 63197–9000. 46338 Federal Register / Vol. 77, No. 150 / Friday, August 3, 2012 / Rules and Regulations [FR Doc. 2012–18661 Filed 8–2–12; 8:45 am] BILLING CODE 6712–01–P DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 50 CFR Part 679 [Docket No. 111207737–2141–02] RIN 0648–XC142 Fisheries of the Economic Exclusive Zone Off Alaska; Deep-Water Species Fishery by Vessels Using Trawl Gear in the Gulf of Alaska National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Temporary rule; closure. AGENCY: NMFS is prohibiting directed fishing for species that comprise the deep-water species fishery by vessels using trawl gear in the Gulf of Alaska (GOA). This action is necessary because the third seasonal apportionment of the Pacific halibut bycatch allowance specified for the deep-water species fishery in the GOA has been reached. DATES: Effective 1200 hrs, Alaska local time (A.l.t.), August 1, 2012, through 1200 hrs, A.l.t., September 1, 2012. FOR FURTHER INFORMATION CONTACT: Obren Davis, 907–586–7228. SUPPLEMENTARY INFORMATION: NMFS manages the groundfish fishery in the GOA exclusive economic zone according to the Fishery Management Plan for Groundfish of the Gulf of Alaska (FMP) prepared by the North Pacific Fishery Management Council under authority of the Magnuson- mstockstill on DSK4VPTVN1PROD with RULES SUMMARY: VerDate Mar<15>2010 16:59 Aug 02, 2012 Jkt 226001 Stevens Fishery Conservation and Management Act. Regulations governing fishing by U.S. vessels in accordance with the FMP appear at subpart H of 50 CFR part 600 and 50 CFR part 679. The third seasonal apportionment of the Pacific halibut bycatch allowance specified for the deep-water species fishery in the GOA is 400 metric tons (mt) as established by the final 2012 and 2013 harvest specifications for groundfish of the GOA (77 FR 15194, March 14, 2012), for the period 1200 hrs, A.l.t., July 1, 2012, through 1200 hrs, A.l.t., September 1, 2012. This apportionment is reduced to 208 mt after allocating 192 mt to vessels participating in cooperatives in the Central GOA Rockfish Program. Rockfish Program allocations are established annually once NMFS receives information about the vessel composition of each cooperative. The 2012 Central GOA Rockfish Program allocations are available at https://www. alaskafisheries.noaa.gov/ sustainablefisheries/rockfish/. In accordance with § 679.21(d)(7)(i), the Administrator, Alaska Region, NMFS, has determined that the third seasonal apportionment of the Pacific halibut bycatch allowance specified for the trawl deep-water species fishery in the GOA has been reached. Consequently, NMFS is prohibiting directed fishing for the deep-water species fishery by vessels using trawl gear in the GOA. The species and species groups that comprise the deepwater species fishery include sablefish, rockfish, deep-water flatfish, rex sole, and arrowtooth flounder. This closure does not apply to fishing by vessels participating in the cooperative fishery in the Rockfish Program for the Central GOA. PO 00000 Frm 00082 Fmt 4700 Sfmt 9990 After the effective date of this closure the maximum retainable amounts at § 679.20(e) and (f) apply at any time during a trip. Classification This action responds to the best available information recently obtained from the fishery. The Acting Assistant Administrator for Fisheries, NOAA (AA), finds good cause to waive the requirement to provide prior notice and opportunity for public comment pursuant to the authority set forth at 5 U.S.C. 553(b)(B) as such requirement is impracticable and contrary to the public interest. This requirement is impracticable and contrary to the public interest as it would prevent NMFS from responding to the most recent fisheries data in a timely fashion and would delay the closure of the deep-water species fishery by vessels using trawl gear in the GOA. NMFS was unable to publish a notice providing time for public comment because the most recent, relevant data only became available as of July 27, 2012. The AA also finds good cause to waive the 30-day delay in the effective date of this action under 5 U.S.C. 553(d)(3). This finding is based upon the reasons provided above for waiver of prior notice and opportunity for public comment. This action is required by § 679.21 and is exempt from review under Executive Order 12866. Authority: 16 U.S.C. 1801 et seq. Dated: July 30, 2012. Lindsay Fullenkamp, Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service. [FR Doc. 2012–19027 Filed 7–31–12; 4:15 pm] BILLING CODE 3510–22–P E:\FR\FM\03AUR1.SGM 03AUR1

Agencies

FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 77, Number 150 (Friday, August 3, 2012)]
[Rules and Regulations]
[Pages 46307-46338]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-18661]

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

47 CFR Part 1

[MD Docket No. 12-116; FCC 12-76]

Assessment and Collection of Regulatory Fees for Fiscal Year 2012

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission revises its Schedule of Regulatory Fees to
recover an amount of $339,844,000 that Congress has required the
Commission to collect for fiscal year 2012. Section 9 of the
Communications Act of 1934, as amended, provides for the annual
assessment and collection of regulatory fees under sections 9(b)(2) and
9(b)(3), respectively, for annual ``Mandatory Adjustments'' and
``Permitted Amendments'' to the Schedule of Regulatory Fees.

DATES: Effective September 4, 2012.

FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order (R&O), FCC 12-76, MD Docket No. 12-116, adopted on July 13,
2012 and released on July 19, 2012.

I. Procedural Matters

A. Final Paperwork Reduction Act

1. This Report and Order does not contain any new or modified
information collection burden for small business concerns with fewer
than 25 employees, pursuant to the Small Business Paperwork Relief Act
of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).

B. Congressional Review Act Analysis

2. The Commission will send a copy of this Report and Order to
Congress and the Government Accountability Office pursuant to the
Congressional Review Act.\1\
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\1\ See 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is
contained in Title II, 251, of the CWAAA; see Public Law 104-121,
Title II, 251, 110 Stat. 868.
---------------------------------------------------------------------------

C. Final Regulatory Flexibility Analysis

3. As required by the Regulatory Flexibility Act of 1980
(``RFA''),\2\ the Commission has prepared a Final Regulatory
Flexibility Analysis (``FRFA'') relating to this Report and Order. The
FRFA is set forth in the section entitled Final Regulatory Flexibility
Analysis.
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\2\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (``SBREFA''), Public Law 104-121, Title II, 110 Stat. 847
(1996). The SBREFA was enacted as Title II of the Contract With
America Advancement Act of 1996 (``CWAAA'').
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II. Introduction and Summary

4. In this Report and Order, we conclude the process of assessing
and collecting regulatory fees for Fiscal Year (``FY'') 2012 to collect
$339,844,000 in regulatory fees for FY 2012. Section 9(a)(1) of the
Communications Act of 1934, as amended (the ``Act'') directs the
Commission to collect regulatory fees ``to recover the costs of * * *
enforcement activities, policy and rulemaking activities, user
information services, and international activities.'' \3\ Section
9(a)(2) stipulates that regulatory fees for the enumerated activities
``shall be collected only if, and only in the total amounts, required
in Appropriation Acts,'' and must ``be established in amounts that will
result in collection, during each fiscal year, of any amount that can
reasonably be expected to equal the amount appropriated'' for the
performance of the activities enumerated in section 9(a)(1) during that
fiscal year. Since FY 2009, Congress has directed the Commission to
assess and collect regulatory fees in an amount equal to the entire
amount appropriated.\4\ Congress appropriated $339,844,000 for the
Commission in FY 2012,\5\ and the regulatory fees established in this
FY 2012 Report and Order are calculated so as to collect this entire
amount.\6\ In this annual regulatory fee proceeding, we retain many of
the current methods, policies, and procedures for collecting section 9
regulatory fees adopted by the Commission in prior years. Consistent
with our established practice, we intend to collect these regulatory
fees during a September 2012 filing window in order to collect the
required amount by the end of our fiscal year.\7\
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\3\ 47 U.S.C. 159(a).
\4\ Omnibus Appropriations Act of 2009, Public Law 111-8, 123
Stat. 524, 657 (2009).
\5\ Consolidated Appropriations Act of 2012, Public Law 112-74,
Div. C, Title V (December 23, 2011).
\6\ In FY 2011, the Commission's collection target goal was
$335,794,000, and it collected $342.04 million through September 30,
2011. Any over collection amount is unavailable for obligation
pursuant to Public Law 112-74 (HR 2055), Consolidated Appropriations
Act of 2012, page 124.
\7\ The Commission also expects to release in the near future a
Notice of Proposed Rulemaking that will propose to update our
current cost allocation percentages and revise our cost allocation
methodology. We expect to implement any changes that result from
this rulemaking in FY 2013; they do not affect the fees set in this
FY 2012 Report and Order.
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5. In this FY 2012 Report and Order, we address the following
issues: (1) Incorporating 2010 Census data into our broadcast
population data, (2) assessing a regulatory fee for each broadcasting
facility operating either in an analog or digital mode (but not both)
for Low Power, Class A, and TV Translators/Boosters, (3) maintaining
the FY 2012 Interstate Telecommunications Service Provider (ITSP) fee
rate at the same level as in FY 2011, (4) using an online filing system
for the filing of requests for a refund, waiver, fee reduction, or
deferment of payment of an application or regulatory fee, (5)
maintaining the Commercial Mobile Radio Service (``CMRS'') Messaging
Service at the rate of $.08 per subscriber, and (6) the

[[Page 46308]]

Commission will continue to promote greater use of technology (and less
use of paper) in improving its regulatory fee notification and
collection processes. The resulting FY 2012 Schedule of Regulatory Fees
appears in Table B.

III. Report and Order

6. In this FY 2012 Report and Order, we retain the same regulatory
fee methodology used in FY 2011 and in prior fiscal years, with some
adjustments to maintain the FY 2012 ITSP fee rate at the same level as
in FY 2011. These adjustments are reflected in the ITSP fee rate, as
well as in the fee rates of all remaining fee categories listed in
Table B.
7. Since FY 1999, the Commission has allocated the amount
appropriated by Congress across the various fee categories, and then
divided these allocated amounts by the number of estimated payment
units in each fee category to determine the unit fee.\8\ As in prior
years, for cases involving small multiyear fees (e.g., licenses that
are renewed over a multiyear term), we divided the allocated amounts by
their respective estimated payment units, as well as by the term of the
license (5-year or 10-year) to determine the unit fee, which was then
rounded to be consistent with the requirements of section 9(b)(2)(B) of
the Act. This process is illustrated in Table A and yields the FY 2012
regulatory fees shown in Table B.
---------------------------------------------------------------------------

\8\ In many instances, the regulatory fee amount is a flat fee
per licensee or regulatee. In some instances, the fee amount
represents a per-unit fee (such as for International Bearer
Circuits), a per-unit subscriber fee (such as for Cable, Commercial
Mobile Radio Service (``CMRS'') Cellular/Mobile and CMRS Messaging),
or a fee factor per revenue dollar (Interstate Telecommunications
Service Provider (``ITSP'') fee). The payment unit is the measure
upon which the fee is based, such as a licensee, regulatee, or
subscriber fee.

TABLE A--Calculation of FY 2012 Revenue Requirements and Pro-Rata Fees
[Regulatory fees for the first ten categories below are collected by the Commission in advance to cover the term of the license and are submitted at the
time the application is filed.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2011 Pro-rated FY Computed new Rounded new FY
Fee category FY 2012 Payment Years Revenue 2012 revenue FY 2012 2012 Expected FY
units estimate requirement regulatory fee regulatory fee 2012 revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)..................... 1,400 10 480,000 501,024 36 35 490,000
PLMRS (Shared use)........................ 15,000 10 2,120,000 2,397,759 16 15 2,250,000
Microwave................................. 13,200 10 2,550,000 2,361,972 18 20 2,640,000
218-219 MHz (Formerly IVDS)............... 5 10 1,950 3,579 72 70 3,500
Marine (Ship)............................. 6,550 10 670,000 787,324 12 10 655,000
GMRS...................................... 7,700 5 232,500 286,300 7 5 192,500
Aviation (Aircraft)....................... 2,900 10 460,000 357,874 12 10 290,000
Marine (Coast)............................ 285 10 132,500 143,150 50 50 142,500
Aviation (Ground)......................... 900 10 165,000 143,150 16 15 135,000
Amateur Vanity Call Signs................. 14,300 10 207,320 214,725 1.50 1.50 214,500
AM Class A4a.............................. 61 1 257,400 250,512 4,107 4,100 250,100
AM Class B4b.............................. 1,471 1 3,057,875 3,113,508 2,117 2,125 3,125,875
AM Class C4c.............................. 869 1 1,078,650 1,109,411 1,277 1,275 1,107,975
AM Class D4d.............................. 1,541 1 3,642,325 3,686,107 2,392 2,400 3,698,400
FM Classes A, B1 & C34e................... 3,055 1 7,629,300 7,759,664 2,548 2,550 7,764,750
FM Classes B, C, C0, C1 & C24f............ 3,020 1 9,410,775 9,513,249 3,150 3,150 9,513,000
AM Construction Permits................... 65 1 44,100 35787 551 550 35,750
FM Construction Permits \1\............... 120 1 101,925 84,000 700 700 84,000
Satellite TV.............................. 125 1 166,250 178,937 1,431 1,425 178,125
Satellite TV Construction Permit.......... 4 1 2,010 3,579 895 895 3,580
VHF Markets 1-10.......................... 22 1 1,692,500 1,761,769 80,080 80,075 1,761,650
VHF Markets 11-25......................... 25 1 1,772,550 1,836,977 73,479 73,475 1,836,875
VHF Markets 26-50......................... 38 1 1,457,100 1,512,153 39,793 39,800 1,512,400
VHF Markets 51-100........................ 60 1 1,183,000 1,255,187 20,920 20,925 1,255,500
VHF Remaining Markets..................... 137 1 774,700 798,915 5,831 5,825 798,025
VHF Construction Permits \1\.............. 2 1 12,200 11,650 5,825 5,825 11,650
UHF Markets 1-10.......................... 109 1 3,915,450 3,854,222 35,360 35,350 3,853,150
UHF Markets 11-25......................... 106 1 3,525,650 3,456,927 32,613 32,625 3,458,250
UHF Markets 26-50......................... 135 1 3,016,800 2,958,639 21,916 21,925 2,959,875
UHF Markets 51-100........................ 225 1 2,933,350 2,868,448 12,749 12,750 2,868,750
UHF Remaining Markets..................... 247 1 864,600 847,308 3,430 3,425 845,975
UHF Construction Permits\1\............... 7 1 32,750 23,975 3,425 3,425 23,975
Broadcast Auxiliaries..................... 24,800 1 268,500 286,300 12 10 248,000
LPTV/Translators/Boosters/Class A TV...... 3,732 1 1,424,765 1,431,498 384 385 1,436,820
CARS Stations............................. 375 1 173,900 178,937 477 475 178,125
Cable TV Systems.......................... 62,200,000 1 58,962,000 59,228,227 0.9522 0.95 59,090,000
Interstate Telecommunication Service $39,700,000,000 1 148,125,000 148,875,000 0.003750 0.00375 148,875,000
Providers................................

[[Page 46309]]

CMRS Mobile Services (Cellular/Public 313,000,000 1 50,660,000 52,156,612 0.1666 0.17 53,210,000
Mobile)..................................
CMRS Messaging Services................... 3,400,000 1 336,000 272,000 0.0800 0.080 272,000
BRS\2\.................................... 950 1 523,900 451,250 475 475 451,250
LMDS...................................... 475 1 161,200 225,625 475 475 225,625
Per 64 kbps Int'l Bearer Circuits 4,452,315 1 1,136,518 1,153,787 .259 .26 1,157,602
Terrestrial (Common) & Satellite (Common
& Non-Common)
Submarine Cable Providers (see chart in 38.313 1 8,080,734 8,150,949 212,749 212,750 8,150,984
Appendix C)\3\...........................
Earth Stations............................ 3,250 1 875,875 894,686 275 275 893,750
Space Stations (Geostationary)............ 87 1 11,429,625 11,559,346 132,866 132,875 11,560,125
Space Stations (Non-Geostationary......... 6 1 850,500 858,899 143,150 143,150 858,900
-------------------------------------------------------------------------------------------------------------
****** Total Estimated Revenue to be ................. ......... 336,599,047 339,840,896 .............. .............. 340,568,811
Collected............................
-------------------------------------------------------------------------------------------------------------
****** Total Revenue Requirement...... ................. ......... 335,794,000 339,844,000 .............. .............. 339,844,000
-------------------------------------------------------------------------------------------------------------
Difference.................... ................. ......... 805,048 (3,104) .............. .............. 724,811
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The FM Construction Permit revenues and the VHF and UHF Construction Permit revenues were adjusted to set the regulatory fee to an amount no higher
than the lowest licensed fee for that class of service. The reductions in the FM Construction Permit revenues are offset by increases in the revenue
totals for FM radio stations. Similarly, reductions in the VHF and UHF Construction Permit revenues are offset by increases in the revenue totals for
VHF and UHF television stations, respectively.
\2\ MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate
the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands, Report & Order
and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, para. 6 (2004).
\3\ The chart at the end of Attachment C lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted
from the adoption of the following proceedings: Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order (MD Docket
No. 08-65, RM-11312), released March 24, 2009; and Assessment and Collection of Regulatory Fees for Fiscal Year 2009 and Assessment and Collection of
Regulatory Fees for Fiscal Year 2008, Notice of Proposed Rulemaking and Order (MD Docket No. 09-65, MD Docket No. 08-65), released on May 14, 2009.
\4\ The fee amounts listed in the column entitled ``Rounded New FY 2012 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
service. The actual FY 2012 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table B.

Table B--FY 2012 Schedule of Regulatory Fees
[Regulatory fees for the first eleven categories below are collected by
the Commission in advance to cover the term of the license and are
submitted at the time the application is filed.]
------------------------------------------------------------------------
Annual
Fee category regulatory fee
(U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90). 35
Microwave (per license) (47 CFR part 101)............ 20
218-219 MHz (Formerly Interactive Video Data Service) 70
(per license) (47 CFR part 95)......................
Marine (Ship) (per station) (47 CFR part 80)......... 10
Marine (Coast) (per license) (47 CFR part 80)........ 50
General Mobile Radio Service (per license) (47 CFR 5
part 95)............................................
Rural Radio (47 CFR part 22) (previously listed under 15
the Land Mobile category)...........................
PLMRS (Shared Use) (per license) (47 CFR part 90).... 15
Aviation (Aircraft) (per station) (47 CFR part 87)... 10
Aviation (Ground) (per license) (47 CFR part 87)..... 15
Amateur Vanity Call Signs (per call sign) (47 CFR 1.50
part 97)............................................
CMRS Mobile/Cellular Services (per unit) (47 CFR .17
parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90)......................................
Broadband Radio Service (formerly MMDS/MDS) (per 475
license) (47 CFR part 27)...........................
Local Multipoint Distribution Service (per call sign) 475
(47 CFR, part 101)..................................
AM Radio Construction Permits........................ 550
FM Radio Construction Permits........................ 700
TV (47 CFR part 73) VHF Commercial:

[[Page 46310]]

Markets 1-10..................................... 80,075
Markets 11-25.................................... 73,475
Markets 26-50.................................... 39,800
Markets 51-100................................... 20,925
Remaining Markets................................ 5,825
Construction Permits............................. 5,825
TV (47 CFR part 73) UHF Commercial:
Markets 1-10..................................... 35,350
Markets 11-25.................................... 32,625
Markets 26-50.................................... 21,925
Markets 51-100................................... 12,750
Remaining Markets................................ 3,425
Construction Permits............................. 3,425
Satellite Television Stations (All Markets).......... 1,425
Construction Permits--Satellite Television Stations.. 895
Low Power TV, Class A TV, TV/FM Translators & 385
Boosters (47 CFR part 74)...........................
Broadcast Auxiliaries (47 CFR part 74)............... 10
CARS (47 CFR part 78)................................ 475
Cable Television Systems (per subscriber) (47 CFR .95
part 76)............................................
Interstate Telecommunication Service Providers (per .00375
revenue dollar).....................................
Earth Stations (47 CFR part 25)...................... 275
Space Stations (per operational station in 132,875
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100)................................................
Space Stations (per operational system in non- 143,150
geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits--Terrestrial/Satellites .26
(per 64KB circuit)..................................
International Bearer Circuits--Submarine Cable....... See Table Below
------------------------------------------------------------------------

FY 2012 Schedule of Regulatory Fees (Continued)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2012 Radio station regulatory fees
---------------------------------------------------------------------------------------------------------------------------------------------------------
FM Classes A, FM Classes B,
Population served AM Class A AM Class B AM Class C AM Class D B1 & C3 C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
< = 25,000.............................................. $725 $600 $550 $625 $700 $875
25,001-75,000........................................... 1,475 1,225 850 950 1,425 1,550
75,001-150,000.......................................... 2,200 1,525 1,125 1,600 1,950 2,875
150,001-500,000......................................... 3,300 2,600 1,675 1,900 3,025 3,750
500,001-1,200,000....................................... 4,775 3,975 2,800 3,175 4,800 5,525
1,200,001-3,000,00...................................... 7,350 6,100 4,200 5,075 7,800 8,850
>3,000,000.............................................. 8,825 7,325 5,325 6,350 9,950 11,500
--------------------------------------------------------------------------------------------------------------------------------------------------------

FY 2012 Schedule of Regulatory Fees
[International bearer circuits--submarine cable]
------------------------------------------------------------------------
Submarine cable systems
(capacity as of December 31, Fee amount Address
2011)
------------------------------------------------------------------------
<2.5 Gbps.................... $13,300 FCC, International, P.O.
Box 979084, St. Louis,
MO 63197-9000.
2.5 Gbps or greater, but less 26,600 FCC, International, P.O.
than 5 Gbps. Box 979084, St. Louis,
MO 63197-9000.
5 Gbps or greater, but less 53,200 FCC, International, P.O.
than 10 Gbps. Box 979084, St. Louis,
MO 63197-9000.
10 Gbps or greater, but less 106,375 FCC, International, P.O.
than 20 Gbps. Box 979084, St. Louis,
MO 63197-9000.
20 Gbps or greater........... 212,750 FCC, International, P.O.
Box 979084, St. Louis,
MO 63197-9000.
------------------------------------------------------------------------

8. We then calculated the number of payment units subject to the
fee. In some instances, Commission licensee databases were used in
calculating payment units; in other instances, actual prior year
payment records and/or industry and trade association projections were
used (see Table C).\9\ Where appropriate, we adjusted and rounded our
final estimates to take into account factors that could affect the
number of units for which a fee is paid.\10\ Such factors include
waivers and exemptions filed in FYs 2011 and 2012, as well as
fluctuations in the number of licenses or station operators due to
economic, technical, or other

[[Page 46311]]

reasons. Our estimated FY 2012 payment units, therefore, were adjusted
to account for the variable factors relevant to each fee category. The
fee rate may also have been rounded or adjusted slightly to reflect
these variables.
---------------------------------------------------------------------------

\9\ See Table C for a list of databases we consulted.
\10\ The use of ``regulatee'' in this Order refers to any payor
of regulatory fees.
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TABLE C--Source of Payment Unit Estimates for FY 2012

In order to calculate individual service fees for FY 2012, we
adjusted FY 2011 payment units for each service to more accurately
reflect expected FY 2012 payment liabilities. We obtained our updated
estimates through a variety of means. For example, we used Commission
licensee databases, actual prior year payment records and industry and
trade association projections when available. The databases we
consulted include our Universal Licensing System (``ULS''),
International Bureau Filing System (``IBFS''), Consolidated Database
System (``CDBS'') and Cable Operations and Licensing System
(``COALS''), as well as reports generated within the Commission such as
the Wireline Competition Bureau's Trends in Telephone Service and the
Wireless Telecommunications Bureau's Numbering Resource Utilization
Forecast.
We sought verification for these estimates from multiple sources
and, in all cases, we compared FY 2012 estimates with actual FY 2011
payment units to ensure that our revised estimates were reasonable.
Where appropriate, we adjusted and/or rounded our final estimates to
take into consideration the fact that certain variables that impact on
the number of payment units cannot yet be estimated with sufficient
accuracy. These include an unknown number of waivers and/or exemptions
that may occur in FY 2012 and the fact that, in many services, the
number of actual licensees or station operators fluctuates from time to
time due to economic, technical, or other reasons. When we note, for
example, that our estimated FY 2012 payment units are based on FY 2011
actual payment units, it does not necessarily mean that our FY 2012
projection is exactly the same number as in FY 2011. We have either
rounded the FY 2012 number or adjusted it slightly to account for these
variables.

Table C--Sources of Payment Unit Estimates for FY 2012
------------------------------------------------------------------------
Sources of payment unit
Fee category estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, 218-219 Based on Wireless
MHz, Marine (Ship & Coast), Aviation Telecommunications Bureau
(Aircraft & Ground), GMRS, Amateur (``WTB'') projections of new
Vanity Call Signs, Domestic Public applications and renewals
Fixed. taking into consideration
existing Commission licensee
databases. Aviation (Aircraft)
and Marine (Ship) estimates
have been adjusted to take
into consideration the
licensing of portions of these
services on a voluntary basis.
CMRS Cellular/Mobile Services.......... Based on WTB projection
reports, and FY 11 payment
data.
CMRS Messaging Services................ Based on WTB reports, and FY 11
payment data.
AM/FM Radio Stations................... Based on CDBS data, adjusted
for exemptions, and actual FY
2011 payment units.
UHF/VHF Television Stations............ Based on CDBS data, adjusted
for exemptions, and actual FY
2011 payment units.
AM/FM/TV Construction Permits.......... Based on CDBS data, adjusted
for exemptions, and actual FY
2011 payment units.
LPTV, Translators and Boosters, Class A Based on CDBS data, adjusted
Television. for exemptions, and actual FY
2011 payment units.
Broadcast Auxiliaries.................. Based on actual FY 2011 payment
units.
BRS (formerly MDS/MMDS)................ Based on WTB reports and actual
FY 2011 payment units.
LMDS................................... Based on WTB reports and actual
FY 2011 payment units.
Cable Television Relay Service Based on data from Media
(``CARS'') Stations. Bureau's COALS database and
actual FY 2011 payment units.
Cable Television System Subscribers.... Based on publicly available
data sources for estimated
subscriber counts and actual
FY 2011 payment units.
Interstate Telecommunication Service The Wireline Competition Bureau
Providers. projected amount of calendar
year 2011 revenues that will
be reported on 2012 FCC Form
499-A worksheets due in April,
2012. Some of the projections
are based on FCC Form 499-Q
data for the four quarters of
calendar year 2011.
Earth Stations......................... Based on International Bureau
(``IB'') licensing data and
actual FY 2011 payment units.
Space Stations (GSOs & NGSOs).......... Based on IB data reports and
actual FY 2011 payment units.
International Bearer Circuits.......... Based on IB reports and
submissions by licensees.
Submarine Cable Licenses............... Based on IB license
information.
------------------------------------------------------------------------

9. On May 4, 2012, we released the FY 2012 Notice of Proposed
Rulemaking \11\ to seek comment on the proposed FY 2012 regulatory
fees. We received two comments and no reply comments (see Table D). We
address the issues raised in our FY 2012 Notice of Proposed Rulemaking
and the comments received below.
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\11\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2012, Notice of Proposed Rulemaking, 77 FR 29275 (May 17, 2012)
(``FY 2012 Regulatory Fees NPRM'').

Table D--List of Commenters
------------------------------------------------------------------------
Commenter Abbreviated name
------------------------------------------------------------------------
Critical Messaging Association........... ``CMA''.
The United States Telecom Association.... ``USTA''.
------------------------------------------------------------------------

A. Regulatory Fee Obligations for AM and FM Radio Stations

10. The fee methodology for AM and FM radio stations is based on a
number of factors, including facility attributes (e.g. power, channel/
frequency) and the population served by each station. The calculation
of the population served is determined by applying current United
States Census Bureau data to the station's technical and engineering
data, as detailed in Table E. In FY 2012, the Commission will
incorporate the results of the 2010 Census data into our broadcast
population data, which could precipitate a change in population count
for some radio stations. These

[[Page 46312]]

population counts, along with the station's class and type of service,
are the basis for determining regulatory fees. We sought comment, but
did not receive any on this issue. We conclude that the 2010 census
data should be incorporated into our broadcast population data when
determining regulatory fees.

TABLE E--Factors, Measurements, and Calculations That Determine Station
Signal Contours and Associated Population Coverages
------------------------------------------------------------------------

-------------------------------------------------------------------------
AM Stations

For stations with nondirectional daytime antennas, the theoretical
radiation was used at all azimuths. For stations with directional
daytime antennas, specific information on each day tower, including
field ratio, phasing, spacing and orientation was retrieved, as well as
the theoretical pattern root-mean-square of the radiation in all
directions in the horizontal plane (``RMS'') figure milliVolt per meter
(mV/m) @ 1 km for the antenna system. The standard, or modified
standard if pertinent, horizontal plane radiation pattern was
calculated using techniques and methods specified in Sec. Sec.
73.150 and 73.152 of the Commission's rules.\12\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.\13\ 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 was used to form a geographical polygon. Population
counting was accomplished by determining which 2010 block centroids
were contained in the polygon. (A block centroid is the center point of
a small area containing population as computed by the U.S. Census
Bureau.) The sum of the population figures for all enclosed blocks
represents the total population for the predicted principal community
coverage area.

FM Stations

The greater of the horizontal or vertical effective radiated power
(``ERP'') (kW) and respective height above average terrain (``HAAT'')
(m) combination was used. Where the antenna height above mean sea level
(``HAMSL'') was available, it was used in lieu of the average HAAT
figure to calculate specific HAAT figures for each of 360 radials under
study. Any available directional pattern information was applied as
well, to produce a radial-specific 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.\14\ The resulting distance to principal community contours
were used to form a geographical polygon. Population counting was
accomplished by determining which 2010 block centroids were contained
in the polygon. The sum of the population figures for all enclosed
blocks represents the total population for the predicted principal
community coverage area.
------------------------------------------------------------------------

B. Regulatory Fee Obligations for Digital Low Power, Class A, and TV
Translators/Boosters

11. The digital transition to full-service television stations was
completed on June 12, 2009, but Low Power, Class A, and TV Translators/
Boosters are not required to make the digital transition until
September 1, 2015. Historically, we have only considered the digital
transition in the context of regulatory fees applicable to full-service
television stations. Consequently, the ``digital only'' exemption does
not apply to Low Power, Class A, and TV Translator/Booster facilities.
Because the digital transition in the Low Power, Class A, and TV
Translator/Booster facilities is still voluntary, these facilities may
transition from analog to digital service at varying times prior to
September 1, 2015. During this period of transition, licensees of Low
Power, Class A, and TV Translator/Booster facilities may be operating
in analog mode, in digital mode, or in an analog and digital simulcast
mode. We sought comment on how this should be reflected in the
regulatory fees paid by licensees of these facilities, but we did not
receive any comments in response. In the absence of comment, we
conclude that a single fee will be assessed for each facility
regardless of whether it transmits in analog or digital mode, digital
mode, or simulcasting in both analog and digital modes. As more of
these facilities convert to digital mode, the Commission will revisit
how regulatory fees will be assessed.
---------------------------------------------------------------------------

\12\ 47 CFR 73.150 and 73.152.
\13\ See Map of Estimated Effective Ground Conductivity in the
United States, 47 CFR 73.190 Figure R3.
\14\ 47 CFR 73.313.
---------------------------------------------------------------------------

C. Regulatory Fee Obligations of Interstate Telecommunications Service
Providers

12. In our FY 2011 Report and Order, we assessed the Interstate
Telecommunications Service Provider (``ITSP'') industry a regulatory
fee of $.00375 per revenue dollar. This fee reflected the Commission's
decision to limit the increase in ITSP regulatory fees in light of the
continuing decrease in the revenue base upon which ITSP regulatory fees
are calculated, and pending a more comprehensive rebalancing of ITSP
fees as part of our reexamination of the factual and methodological
predicates of our regulatory fee program. This reexamination will
commence shortly. For that reason we proposed in our FY 2012 Notice of
Proposed Rulemaking to assess FY 2012 ITSP regulatory fees at the same
fee rate as in FY 2011, and to allocate the remaining revenue
requirement across all other fee categories.\15\
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\15\ See FY 2012 Regulatory Fees NPRM, at para. 17.
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13. We received one comment from the United States Telecom
Association (``USTA''). USTA supports the Commission's effort to
rebalance its regulatory fee structure, including updating the
calculation of full-time equivalents (``FTEs'') and adjusting the way
costs are currently allocated.\16\ USTA also contends that today's
separate communication platforms, e.g. wireless, cable, and wireline,
are capable of providing similar communication services, and it is
therefore critical for the Commission to establish fee parity among the
providers utilizing these platforms.\17\
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\16\ United States Telecom Association, at page 1.
\17\ USTA at page 1-2.
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14. We have initiated a separate proceeding in which we are
requesting comment on these and other issues.\18\ Because we expect to
use the comments that are received and other data in setting next
year's regulatory fees, we will adopt our proposal to maintain the FY
2012 ITSP fee rate in the interim at the FY 2011 rate of .00375.
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\18\ In the Matter of Procedures for Assessment and Collection
of Regulatory Fees; Assessment and Collection of Regulatory Fees for
Fiscal Year 2008, Notice of Proposed Rulemaking, FCC 12-77, MD
Docket No. 12-201 (released on July 17, 2012).
---------------------------------------------------------------------------

D. Improving Public Information on Waiver Requests and Decisions

15. In our FY 2012 Notice of Proposed Rulemaking, we sought comment
on requiring regulatees filing a request for a refund, waiver, fee
reduction, or

[[Page 46313]]

deferment of payment of an application or regulatory fee to use an
online filing system rather than submitting their requests in hardcopy
format.\19\ We believe that an online filing system will complement
other existing online Commission systems already in place, such as the
Broadcast Radio and Television Electronic Filing System (more commonly
referred to as CDBS), the Cable Operations and Licensing System
(COALS), and Consumer Complaint Forms. The resulting fee waiver filing
system will include such documents as the filed request, any relevant
supporting documentation, and the resulting decision. We also proposed
to apply the provisions of section 0.459 to requests that
electronically-filed material be withheld from public inspection.\20\
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\19\ See FY 2012 Regulatory Fees NPRM at para. 18.
\20\ Specifically, section 0.457(a)(2) through (g) describe,
inter alia, how confidential material should be submitted
electronically, what showings must be made to justify withholding
electronically-submitted information from public inspection, and how
the Commission will resolve confidentiality requests.
---------------------------------------------------------------------------

16. We received no comments on this issue. We will therefore adopt
our proposal and require that all requests for refunds, waivers, fee
reductions, or deferments of payment be filed using an online system.
We direct the Office of Managing Director to take the necessary steps
to assist regulatees in transitioning to electronic filing.

E. Commercial Mobile Radio Services (``CMRS'') Messaging Service

17. In response to our FY 2012 Notice of Proposed Rulemaking, the
Commission received a comment from the Critical Messaging Association
(``CMA'') regarding the CMRS messaging service regulatory fee category.
CMA contends that even though the Commission has not acted on its FY
2008 Further Notice of Proposed Rulemaking to review, among other
things, the CMRS messaging service fee category, the Commission should
maintain the CMRS messaging fee at $.08 per subscriber as a minimum
appropriate action to take in FY 2012.\21\ As stated in paragraph 11,
we anticipate revising our regulatory fee program in time to calculate
FY 2013 fees. For that reason, and because we agree with CMA that the
prevailing circumstances in FY 2003 still exist today,\22\ we find it
appropriate that the FY 2012 CMRS Messaging regulatory fee remain at a
rate of $0.08 per subscriber.
---------------------------------------------------------------------------

\21\ The Critical Messaging Association at page 1.
\22\ Beginning in FY 2003, the Commission maintained the paging
regulatory fee rate at $.08 per subscriber, the same level as in FY
2002, and it has maintained this level of $.08 per subscriber for
all subsequent years. See Assessment and Collection of Regulatory
Fees for Fiscal Year 2003, Report and Order, 18 FCC Rcd 15988 paras.
21-22 (2003) (FY 2003 Report and Order).
---------------------------------------------------------------------------

F. Administrative and Operational Issues

18. In FY 2009, the Commission implemented several procedural
changes that simplified the payment and reconciliation processes of
regulatory fees. In FY 2012, the Commission will continue to promote
greater use of technology (and less use of paper) in improving our
regulatory fee notification and collection processes. We sought comment
on how we might do this, but we received no specific comment in
response. Accordingly, the Commission will continue its own efforts to
promote greater efficiency in its regulatory fee notification and
collection processes, subject to appropriate notice and comment.
19. In FY 2009, we instituted a mandatory filing requirement using
the Commission's electronic filing and payment system (also known as
``Fee Filer'').\23\ Regulatees filing their annual regulatory fee
payments were required to begin the process by entering the
Commission's Fee Filer system with a valid FCC Registration Number
(``FRN'') and password.\24\ This change, which required regulatees to
use Fee Filer for the filing of annual regulatory fees, not the payment
of such regulatory fees \25\ was beneficial to both licensees and to
the Commission. For licensees, the mandatory use of Fee Filer
eliminates the need to manually complete and submit a hardcopy Form
159, and for the Commission, the data in electronic format makes it
much easier to process payments efficiently and effectively. We sought
comment on how to improve the mandatory use of Fee Filer for filing
annual regulatory fees. We received no specific comments or reply
comments on this issue. Accordingly, we will continue our own efforts
to refine our fee filing and payment procedures, subject to appropriate
notice and comment.
---------------------------------------------------------------------------

\23\ See Assessment and Collection of Regulatory Fees for Fiscal
Year FY 2009, Report and Order 24 FCC Rcd 10301 at paras. 20 and 21
(``FY 2009 Report and Order'').
\24\ In order to do this, licensees must have a current and
valid FRN address on file in the Commission's Registration System
(CORES).
\25\ Regulatees have different options when making a payment,
including credit card, check, and wire transfer.
---------------------------------------------------------------------------

IV. Fee Collection Procedures

20. Included below are procedural items as well as our current
payment and collection methods which we have revised over the past
several years to expedite the processing of regulatory fee payments. We
do not propose changes to these procedures. Rather, we include them
here as a useful way of reminding regulatory fee payers and the public
about these aspects of the annual regulatory fee collection process.

A. Public Notices and Fact Sheets

21. 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 relevant regulatory fee payment
procedures. We will continue to post this information on https://transition.fcc.gov/fees/regfees.html, rather than mailing it to
regulatees.

B. Pre-Bill Notification and Collection of Regulatory Fees

22. In prior years, the Commission mailed pre-bills via surface
mail to regulatees in select regulatory fee categories: ITSPs,
Geostationary (``GSO'') and Non-Geostationary (``NGSO'') satellite
space station licensees,\26\ holders of Cable Television Relay Service
(``CARS'') licenses, and Earth Station licensees.\27\ The remaining
regulatees did not receive pre-bills. In our FY 2009 Report and Order,
the Commission decided to make the information contained in these pre-
bills viewable in Fee Filer, rather than mailing pre-bills to licensees
via surface mail.\28\ We continued this practice in FY 2010 and FY 2011
by placing the pre-bill information on Fee Filer, where it could be
accessed by regulatees through the Commission's Web site. Regulatees
can also look to the Commission's Web site for information on upcoming
events and deadlines relating to regulatory fees.
---------------------------------------------------------------------------

\26\ Geostationary orbit space station (``GSO'') licensees
received regulatory fee pre-bills for satellites that (1) were
licensed by the Commission and operational on or before October 1 of
the respective fiscal year; and (2) were not co-located with and
technically identical to another operational satellite on that date
(i.e., were not functioning as a spare satellite). Non-geostationary
orbit space station (``NGSO'') licensees received regulatory fee
pre-bills for systems that were licensed by the Commission and
operational on or before October 1 of the respective fiscal year.
\27\ 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.
\28\ See FY 2009 Report and Order at para. 24, 26.
---------------------------------------------------------------------------

C. Assessment Notifications

1. Media Services Licensees
23. Beginning in FY 2003, we sent fee assessment notifications via
surface mail to media services entities on a per-

[[Page 46314]]

facility basis.\29\ These 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
to be more electronic and paperless.\30\ In our FY 2010 Notice of
Proposed Rulemaking, we sought comment to discontinue mailing the media
notifications beginning in FY 2011, relying instead on information on
the Commission's Web site and the use of the Commission-authorized Web
site at www.fccfees.com.\31\ We received no comments or reply comments
in FY 2010, and beginning in FY 2011, we discontinued the mailing of
fee assessment notifications via surface mail to media service
entities. In FY 2012, we will continue the practice of not mailing
hardcopy notification assessment letters to media licensees.
---------------------------------------------------------------------------

\29\ 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.
\30\ Those refinements include providing licensees with a
Commission-authorized Web site where they can update or correct any
information concerning their facilities, and amend their fee-exempt
status, if need be. The notifications also provide licensees with a
telephone number to call in the event that they need customer
assistance.
\31\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2010, Report and Order, 25 FCC Rcd 9278 at para. 42 (2010)
(``FY 2010 Report and Order'').
---------------------------------------------------------------------------

2. CMRS Cellular and Mobile Services Assessments
24. We will continue to follow our current procedures for conveying
CMRS subscriber counts to providers. We will mail an initial assessment
letter to Commercial Mobile Radio Service (CMRS) providers using data
from the Numbering Resource Utilization Forecast (``NRUF'') report that
is based on ``assigned'' number counts that have been adjusted for
porting to net Type 0 ports (``in'' and ``out'').\32\ The letter will
include a listing of the carrier's Operating Company Numbers (``OCNs'')
upon which the assessment is based.\33\ The letters will not include
OCNs with their respective assigned number counts, but rather, an
aggregate total of assigned numbers for each carrier.
---------------------------------------------------------------------------

\32\ 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
on Reconsideration, 20 FCC Rcd 12259, 12264, paras. 38-44 (2005).
\33\ Id.
---------------------------------------------------------------------------

25. A carrier wishing to revise its subscriber count can do so by
accessing Fee Filer after receiving its initial CMRS assessment letter.
Providers should follow the prompts in Fee Filer to record their
subscriber revisions, along with any supporting documentation.\34\ The
Commission will then review the revised count and supporting
documentation and either approve or disapprove the submission in Fee
Filer. If the submission is disapproved, the Commission will contact
the provider to afford the provider an opportunity to discuss its
revised subscriber count and/or provide additional supporting
documentation. If we receive no response or correction to the initial
assessment letter, or we do not reverse our initial disapproval of the
provider's revised count submission, we expect the fee payment to be
based on the number of subscribers listed on the initial assessment
letter. Once the timeframe for revision has passed, the subscriber
counts are final and are the basis upon which CMRS regulatory fees are
expected to be paid. Providers can also view their final subscriber
counts online in Fee Filer. A final CMRS assessment letter will not be
mailed out.
---------------------------------------------------------------------------

\34\ In the supporting documentation, the provider will need to
state a reason for the change, such as a purchase or sale of a
subsidiary, the date of the transaction, and any other pertinent
information that will help to justify a reason for the change.
---------------------------------------------------------------------------

26. Because some carriers do not file the NRUF report, they may not
receive an initial assessment letter. In these instances, the carriers
should compute their fee payment using the standard methodology \35\
that is currently in place for CMRS Wireless services (e.g., compute
their subscriber counts as of December 31, 2011), and submit their fee
payment accordingly. Whether a carrier receives an assessment letter or
not, the Commission reserves the right to audit the number of
subscribers for which regulatory fees are paid. In the event that the
Commission determines that the number of subscribers paid is
inaccurate, the Commission will bill the carrier for the difference
between what was paid and what should have been paid.
---------------------------------------------------------------------------

\35\ See, e.g., Federal Communications Commission, Regulatory
Fees Fact Sheet: What You Owe--Commercial Wireless Services for FY
2011 at 1 (rel. September 2011).
---------------------------------------------------------------------------

D. Streamlined Regulatory Fee Payment Process

1. Cable Television
27. The Commission will continue to permit cable television
operators to base their regulatory fee payment on their company's
aggregate year-end subscriber count, rather than requiring them to
report cable subscriber counts on a per community unit identifier
(``CUID'') basis. This significantly lessens the cable operators'
burden in calculating and paying their regulatory fees.
2. CMRS Cellular and Mobile Providers
28. In FY 2006, we streamlined the CMRS payment process by
eliminating the requirement for CMRS providers to identify their
individual call signs when making their regulatory fee payment, instead
allowing CMRS providers to pay their regulatory fees only at the
aggregate subscriber level without having to identify their various
call signs.\36\ We will continue this practice in FY 2012. In FY 2007,
we consolidated the CMRS cellular and CMRS mobile fee categories into
one fee category with a single fee code, thereby eliminating the
requirement for CMRS providers to separate their subscriber counts into
CMRS cellular and CMRS mobile fee categories during the regulatory fee
payment process. This consolidation of fee categories enabled the
Commission to process payments more quickly and accurately. For FY
2012, we will continue this practice of combining the CMRS cellular and
CMRS mobile fee categories into one regulatory fee category.
---------------------------------------------------------------------------

\36\ 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).
---------------------------------------------------------------------------

3. Interstate Telecommunications Service Providers
29. 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
worksheet to the nearest dollar. This revision enabled the Commission
to process the ITSP regulatory fee payments more quickly because
rounding was performed in a consistent manner, thereby eliminating
processing issues. For FY 2012, we will continue to round lines 14 and
16 when calculating the FY 2012 ITSP fee obligation. In addition, we
will continue the practice of not mailing out Form 159-W via surface
mail.

E. Payment of Regulatory Fees

1. Lock Box Bank
30. All lock box payments to the Commission for FY 2012 will be
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC.
During the fee season for collecting FY 2012 regulatory fees,
regulatees can pay their fees by credit card through Pay.gov,\37\ by
check, money order, or

[[Page 46315]]

debit card,\38\ or by placing their credit card number on Form 159-E
(Remittance Advice form) and mailing their fee and accompanying Form
159-E to the following address: Federal Communications Commission,
Regulatory Fees, P.O. Box 979084, St. Louis, MO 63197-9000. Additional
payment options and instructions are posted at https://transition.fcc.gov/fees/regfees.html.
---------------------------------------------------------------------------

\37\ In accordance with U.S. Treasury Financial Manual
Announcement No. A-2012-02, the U.S. Treasury will reject credit
card transactions greater than $49,999.99 from a single credit card
in a single day. This includes online transactions conducted via
Pay.gov, transactions conducted via other channels, and direct-over-
the counter transactions made at a U.S. Government facility.
Individual credit card transactions larger than the $49,999.99 limit
may not be split into multiple transactions using the same credit
card, whether or not the split transactions are assigned to multiple
days. Splitting a transaction violates card network and Financial
Management Service (FMS) rules. However, credit card transactions
exceeding the daily limit may be split between two or more different
credit cards. Other alternatives for transactions exceeding the
$49,999.99 credit card limit include payment by check, electronic
debit from your bank account, and wire transfer.
\38\ In accordance with U.S. Treasury Financial Manual
Announcement No. A-2012-02, the maximum dollar-value limit for debit
card transactions will be eliminated. It should also be noted that
only Visa and MasterCard branded debit cards are accepted by
Pay.gov.
---------------------------------------------------------------------------

2. Receiving Bank for Wire Payments
31. The receiving bank for all wire payments is the Federal Reserve
Bank, New York, New York (TREAS NYC). When making a wire transfer,
regulatees must fax a copy of their Fee Filer generated Form 159-E to
U.S. Bank, St. Louis, Missouri at (314) 418-4232 at least one hour
before initiating the wire transfer (but on the same business day) so
as not to delay crediting their account. Regulatees should discuss
arrangements (including bank closing schedules) with their bankers
several days before they plan to make the wire transfer to allow
sufficient time for the transfer to be initiated and completed before
the deadline. Complete instructions for making wire payments are posted
at https://transition.fcc.gov/fees/wiretran.html.
3. De Minimis Regulatory Fees
32. Regulatees whose total FY 2012 regulatory fee liability,
including all categories of fees for which payment is due, is less than
$10 are exempted from payment of FY 2012 regulatory fees.
4. Standard Fee Calculations and Payment Dates
33. The Commission will accept fee payments made in advance of the
window for the payment of regulatory fees. The responsibility for
payment of fees by service category is as follows:
Media Services: Regulatory fees must be paid for initial
construction permits that were granted on or before October 1, 2011 for
AM/FM radio stations, VHF/UHF full service television stations, and
satellite television stations. Regulatory fees must be paid for all
broadcast facility licenses granted on or before October 1, 2011. In
instances where a permit or license is transferred or assigned after
October 1, 2011, 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,
2011. In instances where a permit or license is transferred or assigned
after October 1, 2011, responsibility for payment rests with the holder
of the permit or license as of the fee due date. We note that audio
bridging service providers are included in this category.\39\
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\39\ Audio bridging services are toll teleconferencing services,
and audio bridging service providers are required to contribute
directly to the Universal Service Fund based on revenues from these
services. On June 30, 2008, the Commission released the InterCall
Order, in which the Commission stated that InterCall, Inc. and all
similarly situated audio bridging service providers are required to
contribute directly to the Universal Service Fund. See Request for
Review by InterCall, Inc. of Decision of Universal Service
Administrator, CC Docket No. 96-45, Order, 23 FCC Rcd 10731 (2008)
(``InterCall Order'').
---------------------------------------------------------------------------

Wireless Services: CMRS cellular, mobile, and messaging
services (fees based on number of subscribers or telephone number
count): Regulatory fees must be paid for authorizations that were
granted on or before October 1, 2011. The number of subscribers, units,
or telephone numbers on December 31, 2011 will be used as the basis
from which to calculate the fee payment. In instances where a permit or
license is transferred or assigned after October 1, 2011,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
The first eleven regulatory fee categories in our Schedule
of Regulatory Fees (see Table B) pay ``small multi-year wireless
regulatory fees.'' Entities pay these regulatory fees in advance for
the entire amount of their five-year or ten-year term of initial
license, and only pay regulatory fees again when the license is renewed
or a new license is obtained. We include these fee categories in our
Schedule of Regulatory Fees to publicize our estimates of the number of
``small multi-year wireless'' licenses that will be renewed or newly
obtained in FY 2012.
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,
2011.\40\ Regulatory fees also must be paid for CARS licenses that were
granted on or before October 1, 2011. In instances where a permit or
license is transferred or assigned after October 1, 2011,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
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\40\ Cable television system operators should compute their
number of basic subscribers as follows: Number of single family
dwellings + number of individual households in multiple dwelling
unit (apartments, condominiums, mobile home parks, etc.) paying at
the basic subscriber rate + bulk rate customers + courtesy and free
service. Note: Bulk-Rate Customers = Total annual bulk-rate charge
divided by basic annual subscription rate for individual households.
Operators may base their count on ``a typical day in the last full
week'' of December 2011, rather than on a count as of December 31,
2011.
---------------------------------------------------------------------------

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, 2011. In instances where a permit
or license is transferred or assigned after October 1, 2011,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
International Services: Submarine Cable Systems:
Regulatory fees for submarine cable systems are to be paid on a per
cable landing license basis based on circuit capacity as of December
31, 2011. In instances where a license is transferred or assigned after
October 1, 2011, responsibility for payment rests with the holder of
the license as of the fee due date. For regulatory fee purposes, the
allocation in FY 2012 will remain at 87.6 percent for submarine cable
and 12.4 percent for satellite/terrestrial facilities.
International Services: Terrestrial and Satellite
Services: Finally, regulatory fees for International Bearer Circuits
are to be paid by facilities-based common carriers that have active
(used or leased) international bearer circuits as of December 31, 2011
in any terrestrial or satellite transmission facility for the provision
of service to an end user or resale carrier, which includes active
circuits to themselves or to their affiliates. In addition, non-common
carrier satellite operators must pay a fee for each circuit sold or
leased to any customer, including themselves or their affiliates, other
than an international common carrier authorized by the Commission to
provide U.S. international common carrier services. ``Active circuits''
for these purposes include backup and redundant circuits as of December
31, 2011. Whether circuits are used

[[Page 46316]]

specifically for voice or data is not relevant for purposes of
determining that they are active circuits. In instances where a permit
or license is transferred or assigned after October 1, 2011,
responsibility for payment rests with the holder of the permit or
license as of the fee due date. For regulatory fee purposes, the
allocation in FY 2012 will remain at 87.6 percent for submarine cable
and 12.4 percent for satellite/terrestrial facilities.

F. Enforcement

34. To be considered timely, regulatory fee payments must be
received and stamped at the lockbox bank by the due date of regulatory
fees. Section 9(c) of the Act requires us to impose a late payment
penalty of 25 percent of the unpaid amount to be assessed on the first
day following the deadline date for filing of these fees.\41\ Failure
to pay regulatory fees and/or any late penalty will subject regulatees
to sanctions, including those set forth in Sec. 1.1910 of the
Commission's Rules \42\ and in the Debt Collection Improvement Act of
1996 (``DCIA'').\43\ 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 Sec. 1.1940(d)
of the Commission's Rules.\44\ 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 payor will be given credit for
the amount paid, but if it is later determined that the fee paid is
incorrect or not timely paid, then the 25 percent late charge penalty
(and other charges and/or sanctions, as appropriate) will be assessed
on the portion that is not paid in a timely manner.
---------------------------------------------------------------------------

\41\ 47 U.S.C. 159(c).
\42\ See 47 CFR 1.1910.
\43\ 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.
\44\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------

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.\45\ 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).
---------------------------------------------------------------------------

\45\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.

TABLE F--FY 2011 Schedule of Regulatory Fees
[Regulatory fees for the first eleven fee categories below are collected
by the Commission in advance to cover the term of the license and are
submitted along with the application at the time the application is
filed.]
------------------------------------------------------------------------
Annual regulatory
Fee category fee (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90). 40
Microwave (per license) (47 CFR part 101)............ 25
218-219 MHz (Formerly Interactive Video Data Service) 65
(per license) (47 CFR part 95)......................
Marine (Ship) (per station) (47 CFR part 80)......... 10
Marine (Coast) (per license) (47 CFR part 80)........ 50
General Mobile Radio Service (per license) (47 CFR 5
part 95)............................................
Rural Radio (47 CFR part 22) (previously listed under 20
the Land Mobile category)...........................
PLMRS (Shared Use) (per license) (47 CFR part 90).... 20
Aviation (Aircraft) (per station) (47 CFR part 87)... 10
Aviation (Ground) (per license) (47 CFR part 87)..... 15
Amateur Vanity Call Signs (per call sign) (47 CFR 1.42
part 97)............................................
CMRS Mobile/Cellular Services (per unit) (47 CFR .17
parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90)......................................
Broadband Radio Service (formerly MMDS/MDS) (per 310
license) (47 CFR part 21)...........................
Local Multipoint Distribution Service (per call sign) 310
(47 CFR part 101)...................................
AM Radio Construction Permits........................ 490
FM Radio Construction Permits........................ 675
TV (47 CFR part 73) VHF Commercial:
Markets 1-10..................................... 84,625
Markets 11-25.................................... 68,175
Markets 26-50.................................... 40,475
Markets 51-100................................... 22,750
Remaining Markets................................ 6,100
Construction Permits............................. 6,100
TV (47 CFR part 73) UHF Commercial:
Markets 1-10..................................... 34,650
Markets 11-25.................................... 32,950
Markets 26-50.................................... 20,950
Markets 51-100................................... 12,325
Remaining Markets................................ 3,275
Construction Permits............................. 3,275
Satellite Television Stations (All Markets).......... 1,250
Construction Permits--Satellite Television Stations.. 670
Low Power TV, Class A TV, TV/FM Translators & 395
Boosters (47 CFR part 74)...........................
Broadcast Auxiliaries (47 CFR part 74)............... 10
CARS (47 CFR part 78)................................ 370
Cable Television Systems (per subscriber) (47 CFR .93
part 76)............................................
Interstate Telecommunication Service Providers (per .00375
revenue dollar).....................................

[[Page 46317]]

Earth Stations (47 CFR part 25)...................... 245
Space Stations (per operational station in 131,375
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100)................................................
Space Stations (per operational system in non- 141,750
geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits--Terrestrial/Satellites .35
(per 64KB circuit)..................................
International Bearer Circuits--Submarine Cable....... See Table Below
------------------------------------------------------------------------

FY 2011 Schedule of Regulatory Fees (Continued)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2011 Radio Station Regulatory Fees
---------------------------------------------------------------------------------------------------------------------------------------------------------
FM Classes A, FM Classes B,
Population served AM Class A AM Class B AM Class C AM Class D B1 & C3 C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................ $700 $575 $525 $600 $675 $850
25,001-75,000........................................... 1,400 1,150 800 900 1,350 1,500
75,001-150,000.......................................... 2,100 1,450 1,050 1,500 1,850 2,750
150,001-500,000......................................... 3,150 2,450 1,575 1,800 2,875 3,600
500,001-1,200,000....................................... 4,550 3,750 2,625 3,000 4,550 5,300
1,200,001-3,000,00...................................... 7,000 5,750 3,950 4,800 7,425 8,500
>3,000,000.............................................. 8,400 6,900 5,000 6,000 9,450 11,050
--------------------------------------------------------------------------------------------------------------------------------------------------------

FY 2011 Schedule of Regulatory Fees
[International bearer circuits--submarine cable]
------------------------------------------------------------------------
Submarine cable systems
(capacity as of December 31, Fee amount Address
2010)
------------------------------------------------------------------------
< 2.5 Gbps................... $12,825 FCC, International, P.O.
Box 979084, St. Louis,
MO 63197-9000.
2.5 Gbps or greater, but less 25,650 FCC, International, P.O.
than 5 Gbps. Box 979084, St. Louis,
MO 63197-9000.
5 Gbps or greater, but less 51,300 FCC, International, P.O.
than 10 Gbps. Box 979084, St. Louis,
MO 63197-9000.
10 Gbps or greater, but less 102,625 FCC, International, P.O.
than 20 Gbps. Box 979084, St. Louis,
MO 63197-9000.
20 Gbps or greater........... 205,225 FCC, International, P.O.
Box 979084, St. Louis,
MO 63197-9000.
------------------------------------------------------------------------

Final Regulatory Flexibility Analysis

36. As required by the Regulatory Flexibility Act (``RFA''),\46\
the Commission prepared an Initial Regulatory Flexibility Analysis
(``IRFA'') in its Notice of Proposed Rulemaking (NPRM) to determine the
possible economic impact on small entities by the policies and rules
proposed in its NPRM. Written public comments were sought on the FY
2012 fee proposal, including on the IRFA. This Final Regulatory
Flexibility Analysis (``FRFA'') conforms to the RFA.\47\
---------------------------------------------------------------------------

\46\ 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'').
\47\ 5 U.S.C. 604.
---------------------------------------------------------------------------

I. Need for, and Objectives of, the Report and Order

37. This rulemaking proceeding was initiated by the Commission to
revise its Schedule of Regulatory Fees to collect $339,844,000, the
amount that Congress has required the Commission to recover in
regulatory fees. This Report and Order revises the fee rates in its
Schedule of Regulatory Fees to reflect changes in estimated unit
counts, if any, and the amount required by the Commission to collect in
regulatory fees. Pursuant to rules adopted in this Order, the FCC will
collect these fees in September 2012 in a manner that is efficient
(e.g. using the Commission's various electronic filing and payment
systems) and without undue public burden (less reliability on paper
transactions and more reliability on pre-loaded payment data).
38. Section 9(a)(1) of the Communications Act of 1934, as amended
(the ``Act'') directs the Commission to collect regulatory fees ``to
recover the costs of * * * enforcement activities, policy and
rulemaking activities, user information services, and international
activities.'' \48\ Section 9(a)(2) stipulates that regulatory fees for
the enumerated activities ``shall be collected only if, and only in the
total amounts, required in Appropriation Acts,'' and must ``be
established in amounts that will result in collection, during each
fiscal year, of any amount that can be reasonably be expected to equal
the amount appropriated'' for the performance of the activities
enumerated in section 9(a)(1) during that fiscal year. In this annual
regulatory fee proceeding, we retain many of the current methods,
policies, and procedures for collecting section 9 regulatory fees
adopted by the Commission in prior years. Consistent with our
established practice, we intend to collect these regulatory fees during
a September 2012 filing window in order to collect the required amount
by the end of our fiscal year.\49\
---------------------------------------------------------------------------

\48\ 47 U.S.C. 159(a).
\49\ The Commission also expects to release in the near future a
Notice of Proposed Rulemaking that will propose to update our
current cost allocation percentages and revise our cost allocation
methodology. We expect to implement any changes that result from
this rulemaking in FY 2013; they do not affect the fees set in this
FY 2012 Report and Order.

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[[Page 46318]]

39. In this FY 2012 Report and Order, we address the following
issues: (1) Incorporating 2010 Census data into our broadcast
population data, (2) assessing a regulatory fee for each broadcasting
facility operating either in an analog or digital mode (but not both)
for Low Power, Class A, and TV Translators/Boosters, (3) maintaining
the FY 2012 Interstate Telecommunications Service Provider (ITSP) fee
rate at the same level as in FY 2011, (4) using an online filing system
for the filing of requests for a refund, waiver, fee reduction, or
deferment of payment of an application or regulatory fee, and (5)
maintaining the Commercial Mobile Radio Service (``CMRS'') Messaging
Service at the rate of $.08 per subscriber.
Regulatory Fee Obligations for AM and FM Radio Stations:
The fee methodology for AM and FM radio stations is based on a number
of factors, including facility attributes (e.g. power, channel/
frequency) and the population served by each station. The calculation
of the population served is determined by applying current United
States Census Bureau data to the station's technical and engineering
data, as detailed in Table E of this Report and Order. In FY 2012, the
Commission will incorporate the results of the 2010 Census data into
our broadcast population data, which could precipitate a change in
population count for some radio stations. These population counts,
along with the station's class and type of service, are the basis for
determining regulatory fees.
Regulatory Fee Obligations for Digital Low Power, Class A,
and TV Translators/Boosters: The digital transition to full-service
television stations was completed on June 12, 2009, but Low Power,
Class A, and TV Translators/Boosters are not required to make the
digital transition until September 1, 2015. Historically, we have only
considered the digital transition in the context of regulatory fees
applicable to full-service television stations. Consequently, the
``digital only'' exemption does not apply to Low Power, Class A, and TV
Translator/Booster facilities. Because the digital transition in the
Low Power, Class A, and TV Translator/Booster facilities is still
voluntary, these facilities may transition from analog to digital
service at varying times prior to September 1, 2015. During this period
of transition, licensees of Low Power, Class A, and TV Translator/
Booster facilities may be operating in analog mode, in digital mode, or
in an analog and digital simulcast mode. In the absence of receiving
any comments, we conclude that a single fee will be assessed for each
facility regardless of whether it transmits in analog or digital mode,
digital mode, or simulcasting in both analog and digital modes. As more
of these facilities convert to digital mode, the Commission will
revisit how regulatory fees will be assessed.
Regulatory Fee Obligations of Interstate
Telecommunications Service Providers (ITSP): In our FY 2011 Report and
Order, we assessed the Interstate Telecommunications Service Provider
(``ITSP'') industry a regulatory fee of $.00375 per revenue dollar.
This fee reflected the Commission's decision to limit the increase in
ITSP regulatory fees in light of the continuing decrease in the revenue
base upon which ITSP regulatory fees are calculated, and pending a more
comprehensive rebalancing of ITSP fees as part of our reexamination of
the factual and methodological predicates of our regulatory fee
program. This reexamination will commence shortly. In our FY 2012
Notice of Proposed Rulemaking, we proposed to assess FY 2012 ITSP
regulatory fees at the same fee rate as in FY 2011, and to allocate the
remaining revenue requirement across all other fee categories.\50\ We
received one comment in support of our proposal. Because we will
initiate a separate proceeding in the near future to examine these and
other issues and expect to utilize any new data or methodologies
adopted in setting next year's regulatory fees, we conclude that in the
interim the FY 2012 ITSP fee rate should be maintained at the FY 2011
rate of .00375.
---------------------------------------------------------------------------

\50\ See FY 2012 Regulatory Fees NPRM, at para. 17.
---------------------------------------------------------------------------

Improving Public Information on Waiver Requests and
Decisions: In our FY 2012 Notice of Proposed Rulemaking, we sought
comment on requiring regulatees filing a request for a refund, waiver,
fee reduction, or deferment of payment of an application or regulatory
fee to use an online filing system rather than submitting their
requests in hardcopy format.\51\ We believe that an online filing
system will complement other existing online Commission systems already
in place, such as the Broadcast Radio and Television Electronic Filing
System (more commonly referred to as CDBS), the Cable Operations and
Licensing System (COALS), and Consumer Complaint Forms. The resulting
fee waiver filing system will include such documents as the filed
request, any relevant supporting documentation, and the resulting
decision. We also proposed to apply the provisions of section 0.459 to
requests that electronically-filed material be withheld from public
inspection.\52\ We received no comments on this issue. We therefore
adopt our proposal and require that all requests for refunds, waivers,
fee reductions, or deferments of payment be filed using an online
system. We direct the Office of Managing Director to take the necessary
steps to assist regulatees in transitioning to electronic filing.
---------------------------------------------------------------------------

\51\ See FY 2012 Regulatory Fees NPRM at para. 18.
\52\ Specifically, section 0.457(a) (2) through (g) describe,
inter alia, how confidential material should be submitted
electronically, what showings must be made to justify withholding
electronically-submitted information from public inspection, and how
the Commission will resolve confidentiality requests.
---------------------------------------------------------------------------

Commercial Mobile Radio Services (``CMRS'') Messaging
Services: In our FY 2012 Notice of Proposed Rulemaking, the Commission
proposed to maintain the CMRS Messaging fee rate at $.08 per
subscriber. We received one comment in support of our action. Because
the prevailing circumstances that first initiated our action in FY 2003
\53\ still exists today, we find it appropriate that the FY 2012 CMRS
Messaging regulatory fee remain at a rate of $0.08 per subscriber.
---------------------------------------------------------------------------

\53\ Beginning in FY 2003, the Commission maintained the paging
regulatory fee rate at $.08 per subscriber, the same level as in FY
2002, and it has maintained this level of $.08 per subscriber for
all subsequent years. See Assessment and Collection of Regulatory
Fees for Fiscal Year 2003, Report and Order, 18 FCC Rcd 15988 paras.
21-22 (2003) (FY 2003 Report and Order).
---------------------------------------------------------------------------

Administrative and Operational Issues: In FY 2009, we instituted a
mandatory filing requirement using the Commission's electronic filing
and payment system (also known as ``Fee Filer'').\54\ Regulatees filing
their annual regulatory fee payments were required to begin the process
by entering the Commission's Fee Filer system with a valid FCC
Registration Number (``FRN'') and password.\55\ This change, which
required regulatees to use Fee Filer for the filing of annual
regulatory fees, not the payment of such regulatory fees \56\ was
beneficial to both licensees and to the Commission. For licensees, the

[[Page 46319]]

mandatory use of Fee Filer eliminates the need to manually complete and
submit a hardcopy Form 159, and for the Commission, the data in
electronic format makes it much easier to process payments efficiently
and effectively. We received no specific comment to our general
inquiry. Accordingly, the Commission will continue its efforts to
promote greater efficiency in its regulatory fee notification and
collection processes, subject to appropriate notice and comment.
---------------------------------------------------------------------------

\54\ See Assessment and Collection of Regulatory Fees for Fiscal
Year FY 2009, Report and Order 24, FCC Rcd 10301 at paras. 20 and 21
(``FY 2009 Report and Order'').
\55\ In order to do this, licensees must have a current and
valid FRN address on file in the Commission's Registration System
(CORES).
\56\ Regulatees have different options when making a payment,
including credit card, check, and wire transfer.
---------------------------------------------------------------------------

II. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA

40. No parties have raised issues in response to the IRFA.

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

41. 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.\57\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \58\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\59\ 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.\60\
---------------------------------------------------------------------------

\57\ 5 U.S.C. 603(b)(3).
\58\ 5 U.S.C. 601(6).
\59\ 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.''
\60\ 15 U.S.C. 632.
---------------------------------------------------------------------------

42. Small Businesses. Nationwide, there are a total of
approximately 29.6 million small businesses, according to the SBA.\61\
---------------------------------------------------------------------------

\61\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' https://web.sba.gov/faqs (accessed Jan. 2009).
---------------------------------------------------------------------------

43. Small Businesses, Small Organizations, and Small Governmental
Jurisdictions.
Our action may, over time, affect small entities that are not
easily categorized at present. We therefore describe here, at the
outset, three comprehensive, statutory small entity size standards.\62\
First, nationwide, there are a total of approximately 27.5 million
small businesses, according to the SBA.\63\ In addition, a ``small
organization'' is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
\64\ Nationwide, as of 2007, there were approximately 1,621,315 small
organizations.\65\ Finally, 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
2011 indicate that there were 89,476 local governmental jurisdictions
in the United States.\67\ We estimate that, of this total, as many as
88, 506 entities may qualify as ``small governmental jurisdictions.''
\68\ Thus, we estimate that most governmental jurisdictions are small.
---------------------------------------------------------------------------

\62\ See 5 U.S.C. 601(3)-(6).
\63\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' web.sba.gov/faqs (last visited May 6,2011; figures are
from 2009).
\64\ 5 U.S.C. 601(4).
\65\ Independent Sector, The New Nonprofit Almanac & Desk
Reference (2010).
\66\ 5 U.S.C. 601(5).
\67\ U.S. Census Bureau, Statistical Abstract of the United
States: 2011, Table 427 (2007)
\68\ The 2007 U.S Census data for small governmental
organizations indicate that there were 89, 476 ``Local Governments''
in 2007. (U.S. Census Bureau, Statistical Abstract of the United
States 2011, Table 428.) The criterion by which the size of such
local governments is determined to be small is a population of
50,000. However, since the Census Bureau does not specifically apply
that criterion, it cannot be determined with precision how many of
such local governmental organizations is small. Nonetheless, the
inference seems reasonable that substantial number of these
governmental organizations has a population of less than 50, 000. To
look at Table 428 in conjunction with a related set of data in Table
429 in the Census's Statistical Abstract of the U.S., that inference
is further supported by the fact that in both Tables, many entities
that may well be small are included in the 89,476 local governmental
organizations, e.g. county, municipal, township and town, school
district and special district entities. Measured by a criterion of a
population of 50,000 many specific sub-entities in this category
seem more likely than larger county-level governmental organizations
to have small populations. Accordingly, of the 89,746 small
governmental organizations identified in the 2007 Census, the
Commission estimates that a substantial majority is small. 68 13 CFR
121.201, NAICS code 517110.
---------------------------------------------------------------------------

44. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the
Commission nor the SBA has developed a small business size standard
specifically for incumbent local exchange services. The appropriate
size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or fewer employees.\69\ Census Bureau data for
2007, which now supersede data from the 2002 Census, show that there
were 3,188 firms in this category that operated for the entire year. Of
this total, 3,144 had employment of 999 or fewer, and 44 firms had had
employment of 1,000 or more. According to Commission data, 1,307
carriers reported that they were incumbent local exchange service
providers.\70\ Of these 1,307 carriers, an estimated 1,006 have 1,500
or fewer employees and 301 have more than 1,500 employees.\71\
Consequently, the Commission estimates that most providers of local
exchange service are small entities that may be affected by the rules
and policies proposed in the NPRM. Thus under this category and the
associated small business size standard, the majority of these
incumbent local exchange service providers can be considered small
providers.\72\
---------------------------------------------------------------------------

\70\ See Trends in Telephone Service, Federal Communications
Commission, Wireline Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (Sept. 2010) (``Trends in Telephone
Service'').
\71\ See id.
\72\ See https://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

45. Competitive Local Exchange Carriers (Competitive LECs),
Competitive Access Providers (CAPs), Shared-Tenant Service Providers,
and Other Local Service Providers. Neither the Commission nor the SBA
has developed a small business size standard specifically for these
service providers. The appropriate 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.\73\ Census Bureau data for 2007 show that there were 3,188
firms in this category that operated for the entire year. Of this
total, 3,144 had employment of 999 or fewer, and 44 firms had had
employment of 1,000 employees or more. Thus under this category and the
associated small business size standard, the majority of these
Competitive LECs, CAPs, Shared-Tenant Service Providers, and Other
Local Service Providers can be considered small entities.\74\ According
to Commission data, 1,442 carriers reported that they were engaged in
the provision of either competitive local exchange services or
competitive access provider services.\75\ Of these 1,442 carriers, an
estimated 1,256 have 1,500

[[Page 46320]]

or fewer employees and 186 have more than 1,500 employees.\76\ In
addition, 17 carriers have reported that they are Shared-Tenant Service
Providers, and all 17 are estimated to have 1,500 or fewer
employees.\77\ In addition, 72 carriers have reported that they are
Other Local Service Providers.\78\ Of the 72, seventy have 1,500 or
fewer employees and two have more than 1,500 employees.\79\
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 rules adopted pursuant to the
NPRM.
---------------------------------------------------------------------------

\73\ 13 CFR 121.201, NAICS code 517110.
\74\ See https://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
\75\ See Trends in Telephone Service, at tbl. 5.3.
\76\ Id.
\77\ Id.
\78\ Id.
\79\ Id.
---------------------------------------------------------------------------

46. 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.\80\ Census data for 2007 show that 1,523 firms provided
resale services during that year. Of that number, 1,522 operated with
fewer than 1000 employees and one operated with more than 1,000.\81\
Thus under this category and the associated small business size
standard, the majority of these local resellers can be considered small
entities. According to Commission data, 213 carriers have reported that
they are engaged in the provision of local resale services.\82\ Of
these, an estimated 211 have 1,500 or fewer employees and two have more
than 1,500 employees.\83\ Consequently, the Commission estimates that
the majority of local resellers are small entities that may be affected
by rules adopted pursuant to the Notice.
---------------------------------------------------------------------------

\80\ 13 CFR 121.201, NAICS code 517911.
\81\ https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=800&-ds_name=EC0751SSSZ5&-_lang=en.
\82\ See Trends in Telephone Service, at tbl. 5.3.
\83\ Id.
---------------------------------------------------------------------------

47. 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.\84\ Census data for 2007 show that 1,523 firms provided
resale services during that year. Of that number, 1,522 operated with
fewer than 1,000 employees and one operated with more than 1,000.\85\
Thus under this category and the associated small business size
standard, the majority of these resellers can be considered small
entities. According to Commission data,\86\ 881 carriers have reported
that they are engaged in the provision of toll resale services. Of
these, an estimated 857 have 1,500 or fewer employees and 24 have more
than 1,500 employees. Consequently, the Commission estimates that the
majority of toll resellers are small entities that may be affected by
our proposed rules.
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\84\ 13 CFR 121.201, NAICS code 517911.
\85\ https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=800&-ds_name=EC0751SSSZ5&-_lang=en.
\86\ Trends in Telephone Service, at tbl. 5.3.
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48. 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.\87\ Census Bureau data for 2007 shows that there were 3,188
firms in this category that operated for the entire year. Of this
total, 3,144 had employment of 999 or fewer, and 44 firms had had
employment of 1,000 employees or more. Thus under this category and the
associated small business size standard, the majority of these PSPs can
be considered small entities.\88\ According to Commission data,\89\ 657
carriers have reported that they are engaged in the provision of
payphone services. Of these, an estimated 653 have 1,500 or fewer
employees and four have more than 1,500 employees. Consequently, the
Commission estimates that the majority of payphone service providers
are small entities that may be affected by our action.
---------------------------------------------------------------------------

\87\ 13 CFR 121.201, NAICS code 517110.
\88\ See https://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
\89\ Trends in Telephone Service, at tbl. 5.3.
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49. Interexchange Carriers. 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.\90\ Census Bureau data for 2007 shows that there were 3,188
firms in this category that operated for the entire year. Of this
total, 3,144 had employment of 999 or fewer, and 44 firms had had
employment of 1,000 employees or more. Thus under this category and the
associated small business size standard, the majority of these
Interexchange carriers can be considered small entities.\91\ According
to Commission data, 359 companies reported that their primary
telecommunications service activity was the provision of interexchange
services.\92\ Of these 359 companies, an estimated 317 have 1,500 or
fewer employees and 42 have more than 1,500 employees.\93\
Consequently, the Commission estimates that the majority of
interexchange service providers are small entities that may be affected
by rules adopted pursuant to the NPRM.
---------------------------------------------------------------------------

\90\ 13 CFR 121.201, NAICS code 517110.
\91\ See https://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
\92\ See Trends in Telephone Service, at tbl. 5.3.
\93\ Id.
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50. 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.\94\ Census Bureau data for 2007 show that there were 3,188
firms in this category that operated for the entire year. Of this
total, 3,144 had employment of 999 or fewer, and 44 firms had had
employment of 1,000 employees or more. Thus under this category and the
associated small business size standard, the majority of these
Interexchange carriers can be considered small entities.\95\ According
to Commission data, 33 carriers have reported that they are engaged in
the provision of operator services. Of these, an estimated 31 have
1,500 or fewer employees and 2 have more than 1,500 employees.\96\
Consequently, the Commission estimates that the majority of OSPs are
small entities that may be affected by our proposed rules.
---------------------------------------------------------------------------

\94\ 13 CFR 121.201, NAICS code 517110.
\95\ See https://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
\96\ Trends in Telephone Service, at tbl. 5.3.
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51. 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.\97\ Census data for 2007 show that 1,523 firms provided
resale services during that year. Of that number, 1,522 operated with
fewer than 1000 employees and one operated with more

[[Page 46321]]

than 1,000.\98\ Thus under this category and the associated small
business size standard, the majority of these prepaid calling card
providers can be considered small entities. According to Commission
data, 193 carriers have reported that they are engaged in the provision
of prepaid calling cards.\99\ Of these, all 193 have 1,500 or fewer
employees and none have more than 1,500 employees.\100\ Consequently,
the Commission estimates that the majority of prepaid calling card
providers are small entities that may be affected by rules adopted
pursuant to the Notice.
---------------------------------------------------------------------------

\97\ 13 CFR 121.201, NAICS code 517911.
\98\ https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=800&-ds_name=EC0751SSSZ5&-_lang=en.
\99\ See Trends in Telephone Service, at tbl. 5.3.
\100\ Id.
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52. 800 and 800-Like Service Subscribers.\101\ 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.\102\ Census data for 2007
show that 1,523 firms provided resale services during that year. Of
that number, 1,522 operated with fewer than 1000 employees and one
operated with more than 1,000.\103\ Thus under this category and the
associated small business size standard, the majority of resellers in
this classification can be considered small entities. To focus
specifically on the number of subscribers than on those firms which
make subscription service available, the most reliable source of
information regarding the number of these service subscribers appears
to be data the Commission collects on the 800, 888, 877, and 866
numbers in use.\104\ According to our data for September 2009, the
number of 800 numbers assigned was 7,860,000; the number of 888 numbers
assigned was 5,888,687; the number of 877 numbers assigned was
4,721,866; and the number of 866 numbers assigned was 7,867,736. The
Commission does not have data specifying the number of these
subscribers that are not independently owned and operated or have more
than 1,500 employees, and thus are unable at this time to estimate with
greater precision the number of toll free subscribers that would
qualify as small businesses under the SBA size standard. Consequently,
the Commission estimates that there are 7,860,000 or fewer small entity
800 subscribers; 5,888,687 or fewer small entity 888 subscribers;
4,721,866 or fewer small entity 877 subscribers; and 7,867,736 or fewer
small entity 866 subscribers.
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\101\ We include all toll-free number subscribers in this
category, including those for 888 numbers.
\102\ 13 CFR 121.201, NAICS code 517911.
\103\ https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=800&-ds_name=EC0751SSSZ5&-_lang=en.
\104\ Trends in Telephone Service, at tbls. 18.4, 18.5, 18.6,
18.7.
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53. Satellite Telecommunications Providers. Two economic census
categories address the satellite industry. The first category has a
small business size standard of $15 million or less in average annual
receipts, under SBA rules.\105\ The second has a size standard of $25
million or less in annual receipts.\106\
---------------------------------------------------------------------------

\105\ 13 CFR 121.201, NAICS code 517410.
\106\ 13 CFR 121.201, NAICS code 517919.
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54. The category of Satellite Telecommunications ``comprises
establishments primarily engaged in providing telecommunications
services to other establishments in the telecommunications and
broadcasting industries by forwarding and receiving communications
signals via a system of satellites or reselling satellite
telecommunications.'' \107\ Census Bureau data for 2007 show that 512
Satellite Telecommunications firms that operated for that entire
year.\108\ Of this total, 464 firms had annual receipts of under $10
million, and 18 firms had receipts of $10 million to $24,999,999.\109\
Consequently, the Commission estimates that the majority of Satellite
Telecommunications firms are small entities that might be affected by
our action.
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\107\ U.S. Census Bureau, 2007 NAICS Definitions, 517410
Satellite Telecommunications.
\108\ See https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=900&-ds_name=EC0751SSSZ4&-_lang=en.
\109\ See https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=900&-ds_name=EC0751SSSZ4&-_lang=en.
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55. The second category, i.e. ``All Other Telecommunications''
comprises ``establishments primarily engaged in providing specialized
telecommunications services, such as satellite tracking, communications
telemetry, and radar station operation. This industry also includes
establishments primarily engaged in providing satellite terminal
stations and associated facilities connected with one or more
terrestrial systems and capable of transmitting telecommunications to,
and receiving telecommunications from, satellite systems.
Establishments providing Internet services or voice over Internet
protocol (VoIP) services via client-supplied telecommunications
connections are also included in this industry.'' \110\ For this
category, Census Bureau data for 2007 shows that there were a total of
2,383 firms that operated for the entire year.\111\ Of this total,
2,347 firms had annual receipts of under $25 million and 12 firms had
annual receipts of $25 million to $49, 999,999.\112\ Consequently, the
Commission estimates that the majority of All Other Telecommunications
firms are small entities that might be affected by our action.
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\110\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517919&search=2007%20NAICS%20Search.
\111\ https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=900&-ds_name=EC0751SSSZ4&-_lang=en.
\112\ https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=900&-ds_name=EC0751SSSZ4&-_lang=en.
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56. Wireless Telecommunications Carriers (except satellite). This
industry comprises establishments engaged in operating and maintaining
switching and transmission facilities to provide communications via the
airwaves. Establishments in this industry have spectrum licenses and
provide services using that spectrum, such as cellular phone services,
paging services, wireless Internet access, and wireless video
services.\113\ The appropriate size standard under SBA rules is for the
category Wireless Telecommunications Carriers. The size standard for
that category is that a business is small if it has 1,500 or fewer
employees.\114\ Under the present and prior categories, the SBA has
deemed a wireless business to be small if it has 1,500 or fewer
employees.\115\ For this category, census data for 2007 show that there
were 1,383 firms that operated for the entire year.\116\ Of this total,
1,368 firms had employment of 999 or fewer employees and 15 had
employment of 1000 employees or more.\117\ Thus under this category and
the associated small business size standard,, the Commission estimates
that the majority of wireless telecommunications carriers (except

[[Page 46322]]

satellite) are small entities that may be affected by our proposed
action.\118\
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\113\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517210&search=2007%20NAICS%20Search
\114\ 13 CFR 121.201, NAICS code 517210.
\115\ 13 CFR 121.201, NAICS code 517210. The now-superseded,
pre-2007 CFR citations were 13 CFR 121.201, NAICS codes 517211 and
517212 (referring to the 2002 NAICS).
\116\ U.S. Census Bureau, Subject Series: Information, Table 5,
``Establishment and Firm Size: Employment Size of Firms for the
United States: 2007 NAICS Code 517210'' (issued Nov. 2010).
\117\ Id. Available 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
``100 employees or more.''
\118\ See https://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en
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57. Licenses Assigned by Auctions. Initially, we note that, as a
general matter, the number of winning bidders that qualify as small
businesses at the close of an auction does not necessarily represent
the number of small businesses currently in service. Also, the
Commission does not generally track subsequent business size unless, in
the context of assignments or transfers, unjust enrichment issues are
implicated.
58. Paging Services. Neither the SBA nor the FCC has developed a
definition applicable exclusively to paging services. However, a
variety of paging services is now categorized under Wireless
Telecommunications Carriers (except satellite).\119\ This industry
comprises establishments engaged in operating and maintaining switching
and transmission facilities to provide communications via the airwaves.
Establishments in this industry have spectrum licenses and provide
services using that spectrum, such as cellular phone services, paging
services, wireless Internet access, and wireless video services.
Illustrative examples in the paging context include paging services,
except satellite; two-way paging communications carriers, except
satellite; and radio paging services communications carriers. The SBA
has deemed a paging service in this category to be small if it has
1,500 or fewer employees.\120\ For this category, census data for 2007
show that there were 1,383 firms that operated for the entire
year.\121\ Of this total, 1,368 firms had employment of 999 or fewer
employees and 15 had employment of 1000 employees or more.\122\ Thus
under this category and the associated small business size standard,
the Commission estimates that the majority of paging services in the
category of wireless telecommunications carriers (except satellite) are
small entities that may be affected by our proposed action.\123\
---------------------------------------------------------------------------

\119\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210
Wireless Telecommunications Categories (Except Satellite)''; https://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
\120\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210
Wireless Telecommunications Categories (Except Satellite).''
\121\ U.S. Census Bureau, Subject Series: Information, Table 5,
``Establishment and Firm Size: Employment Size of Firms for the
United States: 2007 NAICS Code 517210'' (issued Nov. 2010).
\122\ Id. Available 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
``100 employees or more.''
\123\ See https://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
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59. 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.\124\ 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.\125\
The SBA has approved this definition.\126\ An initial auction of
Metropolitan Economic Area (``MEA'') licenses was conducted in the year
2000. Of the 2,499 licenses auctioned, 985 were sold.\127\ Fifty-seven
companies claiming small business status won 440 licenses.\128\ A
subsequent auction of MEA and Economic Area (``EA'') licenses was held
in the year 2001. Of the 15,514 licenses auctioned, 5,323 were
sold.\129\ One hundred thirty-two companies claiming small business
status purchased 3,724 licenses. A third auction, consisting of 8,874
licenses in each of 175 EAs and 1,328 licenses in all but three of the
51 MEAs, was held in 2003. Seventy-seven bidders claiming small or very
small business status won 2,093 licenses.\130\ A fourth auction of
9,603 lower and upper band paging licenses was held in the year 2010.
29 bidders claiming small or very small business status won 3,016
licenses.
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\124\ 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).
\125\ Paging Second Report and Order, 12 FCC Rcd at 2811, para.
179.
\126\ See Letter from Aida Alvarez, Administrator, SBA, to Amy
Zoslov, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau (``WTB''), FCC (Dec. 2, 1998) (``Alvarez
Letter 1998'').
\127\ See ``929 and 931 MHz Paging Auction Closes,'' Public
Notice, 15 FCC Rcd 4858 (WTB 2000).
\128\ See id.
\129\ See ``Lower and Upper Paging Band Auction Closes,'' Public
Notice, 16 FCC Rcd 21821 (WTB 2002).
\130\ See ``Lower and Upper Paging Bands Auction Closes,''
Public Notice, 18 FCC Rcd 11154 (WTB 2003). The current number of
small or very small business entities that hold wireless licenses
may differ significantly from the number of such entities that won
in spectrum auctions due to assignments and transfers of licenses in
the secondary market over time. In addition, some of the same small
business entities may have won licenses in more than one auction.
---------------------------------------------------------------------------

60. 2.3 GHz Wireless Communications Services. This service can be
used for fixed, mobile, radiolocation, and digital audio broadcasting
satellite uses. The Commission defined ``small business'' for the
wireless communications services (``WCS'') auction as an entity with
average gross revenues of $40 million for each of the three preceding
years, and a ``very small business'' as an entity with average gross
revenues of $15 million for each of the three preceding years.\131\ The
SBA approved these definitions.\132\ The Commission conducted an
auction of geographic area licenses in the WCS service in 1997. In the
auction, seven bidders that qualified as very small business entities
won 31 licenses, and one bidder that qualified as a small business
entity won a license.
---------------------------------------------------------------------------

\131\ 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).
\132\ See Alvarez Letter 1998.
---------------------------------------------------------------------------

61. 1670-1675 MHz Services. This service can be used for fixed and
mobile uses, except aeronautical mobile.\133\ An auction for one
license in the 1670-1675 MHz band was conducted in 2003. The Commission
defined a ``small business'' as an entity with attributable average
annual gross revenues of not more than $40 million for the preceding
three years, which would thus be eligible for a 15 percent discount on
its winning bid for the 1670-1675 MHz band license. Further, the
Commission defined a ``very small business'' as an entity with
attributable average annual gross revenues of not more than $15 million
for the preceding three years, which would thus be eligible to receive
a 25 percent discount on its winning bid for the 1670-1675 MHz band
license. The winning bidder was not a small entity.
---------------------------------------------------------------------------

\133\ 47 CFR 2.106; see generally 47 CFR 27.1-.70.
---------------------------------------------------------------------------

62. Wireless Telephony. Wireless telephony includes cellular,
personal communications services, and specialized mobile radio
telephony carriers. As noted, the SBA has developed a small business
size standard for Wireless Telecommunications Carriers (except
Satellite).\134\ Under the SBA small business size standard, a business
is small if it has 1,500 or fewer employees.\135\ Census data for 2007
shows that there were 1,383 firms that operated that year.\136\ Of
those 1,383, 1,368 had fewer than 100 employees, and 15 firms had more
than 100

[[Page 46323]]

employees. Thus under this category and the associated small business
size standard, the majority of firms can be considered small. According
to Trends in Telephone Service data, 434 carriers reported that they
were engaged in wireless telephony.\137\ Of these, an estimated 222
have 1,500 or fewer employees and 212 have more than 1,500
employees.\138\ Therefore, approximately half of these entities can be
considered small. Similarly, according to Commission data, 413 carriers
reported that they were engaged in the provision of wireless telephony,
including cellular service, Personal Communications Service (PCS), and
Specialized Mobile Radio (SMR) Telephony services.\139\ Of these, an
estimated 261 have 1,500 or fewer employees and 152 have more than
1,500 employees.\140\ Consequently, the Commission estimates that
approximately half or more of these firms can be considered small.
Thus, using available data, we estimate that the majority of wireless
firms can be considered small.
---------------------------------------------------------------------------

\134\ 13 CFR 121.201, NAICS code 517210.
\135\ Id.
\136\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007
NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
\137\ Trends in Telephone Service, at Table 5.3.
\138\ Id.
\139\ See Trends in Telephone Service, at tbl. 5.3.
\140\ See id.
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63. Broadband Personal Communications Service. Broadband Personal
Communications Service. The broadband personal communications services
(PCS) spectrum is divided into six frequency blocks designated A
through F, and the Commission has held auctions for each block. The
Commission initially defined a ``small business'' for C- and F-Block
licenses as an entity that has average gross revenues of $40 million or
less in the three previous years.\141\ For F-Block licenses, 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 years.\142\ These small business size standards, in the
context of broadband PCS auctions, have been approved by the SBA.\143\
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 claimed small business status in the first two
C-Block auctions. A total of 93 bidders that claimed small and very
small business status won approximately 40 percent of the 1,479
licenses in the first auction for the D, E, and F Blocks.\144\ On April
15, 1999, the Commission completed the re-auction of 347 C-, D-, E-,
and F-Block licenses in Auction No. 22.\145\ Of the 57 winning bidders
in that auction, 48 claimed small business status and won 277 licenses.
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\141\ See Amendment of Parts 20 and 24 of the Commission's
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile
Radio Service Spectrum Cap; Amendment of the Commission's Cellular/
PCS Cross-Ownership Rule, WT Docket No. 96-59, GN Docket No. 90-314,
Report and Order, 11 FCC Rcd 7824, 7850-52 paras. 57-60 (1996)
(``PCS Report and Order''); see also 47 CFR 24.720(b).
\142\ See PCS Report and Order, 11 FCC Rcd at 7852 para. 60.
\143\ See Alvarez Letter 1998.
\144\ See Broadband PCS, D, E and F Block Auction Closes, Public
Notice, Doc. No. 89838 (rel. Jan. 14, 1997).
\145\ See C, D, E, and F Block Broadband PCS Auction Closes,
Public Notice, 14 FCC Rcd 6688 (WTB 1999). Before Auction No. 22,
the Commission established a very small standard for the C Block to
match the standard used for F Block. Amendment of the Commission's
Rules Regarding Installment Payment Financing for Personal
Communications Services (PCS) Licensees, WT Docket No. 97-82, Fourth
Report and Order, 13 FCC Rcd 15743, 15768 para. 46 (1998).
---------------------------------------------------------------------------

64. On January 26, 2001, the Commission completed the auction of
422 C and F Block Broadband PCS licenses in Auction No. 35. Of the 35
winning bidders in that auction, 29 claimed small business status.\146\
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 242 C-, D-, E-, and F-Block licenses in Auction No. 58. Of
the 24 winning bidders in that auction, 16 claimed small business
status and won 156 licenses.\147\ On May 21, 2007, the Commission
completed an auction of 33 licenses in the A, C, and F Blocks in
Auction No. 71.\148\ Of the 14 winning bidders in that auction, six
claimed small business status and won 18 licenses.\149\ On August 20,
2008, the Commission completed the auction of 20 C-, D-, E-, and F-
Block Broadband PCS licenses in Auction No. 78.\150\ Of the eight
winning bidders for Broadband PCS licenses in that auction, six claimed
small business status and won 14 licenses.\151\
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\146\ See C and F Block Broadband PCS Auction Closes; Winning
Bidders Announced, Public Notice, 16 FCC Rcd 2339 (2001).
\147\ See Broadband PCS Spectrum Auction Closes; Winning Bidders
Announced for Auction No. 58, Public Notice, 20 FCC Rcd 3703 (2005).
\148\ See Auction of Broadband PCS Spectrum Licenses Closes;
Winning Bidders Announced for Auction No. 71, Public Notice, 22 FCC
Rcd 9247 (2007).
\149\ Id.
\150\ See Auction of AWS-1 and Broadband PCS Licenses Closes;
Winning Bidders Announced for Auction 78, Public Notice, 23 FCC Rcd
12749 (WTB 2008).
\151\ Id.
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65. Advanced Wireless Services. In 2006, the Commission conducted
its first auction of Advanced Wireless Services licenses in the 1710-
1755 MHz and 2110-2155 MHz bands (``AWS-1''), designated as Auction
66.\152\ For the AWS-1 bands, the Commission has defined a ``small
business'' as an entity with average annual gross revenues for the
preceding three years not exceeding $40 million, and a ``very small
business'' as an entity with average annual gross revenues for the
preceding three years not exceeding $15 million.\153\ In 2006, the
Commission conducted its first auction of AWS-1 licenses.\154\ In that
initial AWS-1 auction, 31 winning bidders identified themselves as very
small businesses won 142 licenses.\155\ Twenty-six of the winning
bidders identified themselves as small businesses and won 73
licenses.\156\ In a subsequent 2008 auction, the Commission offered 35
AWS-1 licenses.\157\ Four winning bidders identified themselves as very
small businesses, and three of the winning bidders identifying
themselves as a small businesses, won five AWS-1 licenses.\158\
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\152\ See Auction of Advanced Wireless Services Licenses
Scheduled for June 29, 2006; Notice and Filing Requirements, Minimum
Opening Bids, Upfront Payments and Other Procedures for Auction No.
66, AU Docket No. 06-30, Public Notice, 21 FCC Rcd 4562 (2006)
(``Auction 66 Procedures Public Notice'').
\153\ See Service Rules for Advanced Wireless services in the
1.7 GHz and 2.1 GHz Bands, Report and Order, 18 FCC Rcd 25,162, App.
B (2003), modified by Service Rules for Advanced Wireless Services
In the 1.7 GHz and 2.1 GHz Bands, Order on Reconsideration, 20 FCC
Rcd 14,058, App. C (2005).
\154\ See Auction of Advanced Wireless Services Licenses
Scheduled for June 29, 2006; Notice and Filing Requirements, Minimum
Opening Bids, Upfront Payments and Other Procedures for Auction No.
66, AU Docket No. 06-30, Public Notice, 21 FCC Rcd 4562 (2006)
(``Auction 66 Procedures Public Notice'').
\155\ See Auction of Advanced Wireless Services Licenses Closes;
Winning Bidders Announced for Auction No. 66, Public Notice, 21 FCC
Rcd 10,521 (2006) (``Auction 66 Closing Public Notice'').
\156\ See id.
\157\ See AWS-1 and Broadband PCS Procedures Public Notice, 23
FCC Rcd at 7499. Auction 78 also included an auction of broadband
PCS licenses.
\158\ See Auction of AWS-1 and Broadband PCS Licenses Closes,
Winning Bidders Announced for Auction 78, Down Payments Due
September 9, 2008, FCC Forms 601 and 602 Due September 9, 2008,
Final Payments Due September 23, 2008, Ten-Day Petition to Deny
Period, Public Notice, 23 FCC Rcd 12,749 (2008).
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66. Narrowband Personal Communications Services. In 1994, the
Commission conducted two auctions of Narrowband PCS licenses. For these
auctions, the Commission defined a ``small business'' as an entity with
average annual gross revenues for the preceding three years not
exceeding $40

[[Page 46324]]

million.\159\ Through these auctions, the Commission awarded a total of
41 licenses, 11 of which were obtained by four small businesses.\160\
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.\161\ 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.\162\ 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.\163\ The SBA has approved these small business size
standards.\164\ A third auction of Narrowband PCS licenses was
conducted in 2001. In that auction, five bidders won 317 (Metropolitan
Trading Areas and nationwide) licenses.\165\ Three of the winning
bidders claimed status as a small or very small entity and won 311
licenses.
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\159\ 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).
\160\ 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).
\161\ Amendment of the Commission's Rules to Establish New
Personal Communications Services, Narrowband PCS, Second Report and
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd
10456, 10476, para. 40 (2000) (``Narrowband PCS Second Report and
Order'').
\162\ Narrowband PCS Second Report and Order, 15 FCC Rcd at
10476, para. 40.
\163\ Id.
\164\ See Alvarez Letter 1998.
\165\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16
FCC Rcd 18663 (WTB 2001).
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67. Lower 700 MHz Band Licenses. The Commission previously adopted
criteria for defining three groups of small businesses for purposes of
determining their eligibility for special provisions such as bidding
credits.\166\ The Commission defined a ``small business'' as an entity
that, together with its affiliates and controlling principals, has
average gross revenues not exceeding $40 million for the preceding
three years.\167\ 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.\168\ Additionally, the Lower 700 MHz Service had
a third category of small business status for Metropolitan/Rural
Service Area (``MSA/RSA'') licenses--``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.\169\ The SBA approved these
small size standards.\170\ An auction of 740 licenses was conducted in
2002 (one license in each of the 734 MSAs/RSAs and one license in each
of the six Economic Area Groupings (EAGs)). Of the 740 licenses
available for auction, 484 licenses were won by 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.\171\
A second auction commenced on May 28, 2003, closed on June 13, 2003,
and included 256 licenses.\172\ 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.\173\ In 2005,
the Commission completed an auction of 5 licenses in the lower 700 MHz
band (Auction 60). All three winning bidders claimed small business
status.
---------------------------------------------------------------------------

\166\ See Reallocation and Service Rules for the 698-746 MHz
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC
Rcd 1022 (2002) (``Channels 52-59 Report and Order'').
\167\ See Channels 52-59 Report and Order, 17 FCC Rcd at 1087-
88, para. 172.
\168\ See id.
\169\ See id, 17 FCC Rcd at 1088, para. 173.
\170\ See Letter from Aida Alvarez, Administrator, SBA, to
Thomas Sugrue, Chief, WTB, FCC (Aug. 10, 1999) (``Alvarez Letter
1999'').
\171\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
17 FCC Rcd 17272 (WTB 2002).
\172\ See Lower 700 MHz Band Auction Closes, Public Notice, 18
FCC Rcd 11873 (WTB 2003).
\173\ See id.
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68. In 2007, the Commission reexamined its rules governing the 700
MHz band in the 700 MHz Second Report and Order.\174\ An auction of A,
B and E block licenses in the Lower 700 MHz band was held in 2008.\175\
Twenty winning bidders claimed small business status (those with
attributable average annual gross revenues that exceed $15 million and
do not exceed $40 million for the preceding three years). Thirty-three
winning bidders claimed very small business status (those with
attributable average annual gross revenues that do not exceed $15
million for the preceding three years). In 2011, the Commission
conducted Auction 92, which offered 16 lower 700 MHz band licenses that
had been made available in Auction 73 but either remained unsold or
were licenses on which a winning bidder defaulted. Two of the seven
winning bidders in Auction 92 claimed very small business status,
winning a total of four licenses.
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\174\ Service Rules for the 698-746, 747-762 and 777-792 MHz
Band, WT Docket No. 06-150, Revision of the Commission's Rules to
Ensure Compatibility with Enhanced 911 Emergency Calling Systems, CC
Docket No. 94-102, Section 68.4(a) of the Commission's Rules
Governing Hearing Aid-Compatible Telephone, WT Docket No. 01-309,
Biennial Regulatory Review--Amendment of Parts 1, 22, 24, 27, and 90
to Streamline and Harmonize Various Rules Affecting Wireless Radio
Services, WT Docket No. 03-264, Former Nextel Communications, Inc.
Upper 700 MHz Guard Band Licenses and Revisions to Part 27 of the
Commission's Rules, WT Docket No. 06-169, Implementing a Nationwide,
Broadband Interoperable Public Safety Network in the 700 MHz Band,
PS Docket No. 06-229, Development of Operational, Technical and
Spectrum Requirements for Meeting Federal, State, and Local Public
Safety Communications Requirements Through the Year 2010, WT Docket
No. 96-86, Second Report and Order, 22 FCC Rcd 15289 (2007) (``700
MHz Second Report and Order'').
\175\ See Auction of 700 MHz Band Licenses Closes, Public
Notice, 23 FCC Rcd 4572 (WTB 2008).
---------------------------------------------------------------------------

69. Upper 700 MHz Band Licenses. In the 700 MHz Second Report and
Order, the Commission revised its rules regarding Upper 700 MHz
licenses.\176\ On January 24, 2008, the Commission commenced Auction 73
in which several licenses in the Upper 700 MHz band were available for
licensing: 12 Regional Economic Area Grouping licenses in the C Block,
and one nationwide license in the D Block.\177\ The auction concluded
on March 18, 2008, with 3 winning bidders claiming very small business
status (those with attributable average annual gross revenues that do
not exceed $15 million for the preceding three years) and winning five
licenses.
---------------------------------------------------------------------------

\176\ 700 MHz Second Report and Order, 22 FCC Rcd 15289.
\177\ See Auction of 700 MHz Band Licenses Closes, Public
Notice, 23 FCC Rcd 4572 (WTB 2008).
---------------------------------------------------------------------------

70. 700 MHz Guard Band Licenses. In 2000, the Commission adopted
the 700 MHz Guard Band Report and Order, in which it established rules
for the A and B block licenses in the Upper 700 MHz band, including
size standards for ``small businesses'' and ``very small businesses''
for purposes of determining their eligibility for special provisions
such as bidding credits.\178\ 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.\179\ 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

[[Page 46325]]

$15 million for the preceding three years.\180\ SBA approval of these
definitions is not required.\181\ An auction of these licenses was
conducted in 2000.\182\ Of the 104 licenses auctioned, 96 licenses were
won by 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 was held in 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.\183\
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\178\ 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) (``700 MHz Guard Band Report and Order'').
\179\ See 700 MHz Guard Band Report and Order, 15 FCC Rcd at
5343, para. 108.
\180\ See id.
\181\ See id., 15 FCC Rcd 5299, 5343, para. 108 n.246 (for the
746-764 MHz and 776-794 MHz bands, the Commission is exempt from 15
U.S.C. 632, which requires Federal agencies to obtain SBA approval
before adopting small business size standards).
\182\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
\183\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------

71. Specialized Mobile Radio. The Commission adopted small business
size standards for the purpose of determining eligibility for bidding
credits in auctions of Specialized Mobile Radio (SMR) geographic area
licenses in the 800 MHz and 900 MHz bands. The Commission defined a
``small business'' as an entity that, together with its affiliates and
controlling principals, has average gross revenues not exceeding $15
million for the preceding three years.\184\ The Commission defined a
``very small business'' as an entity that, together with its affiliates
and controlling principals, has average gross revenues not exceeding $3
million for the preceding three years.\185\ The SBA has approved these
small business size standards for both the 800 MHz and 900 MHz SMR
Service.\186\ The first 900 MHz SMR auction was completed in 1996.
Sixty bidders claiming that they qualified as small businesses under
the $15 million size standard won 263 licenses in the 900 MHz SMR band.
In 2004, the Commission held a second auction of 900 MHz SMR licenses
and three winning bidders identifying themselves as very small
businesses won 7 licenses.\187\ The auction of 800 MHz SMR licenses for
the upper 200 channels was conducted in 1997. Ten bidders claiming that
they qualified as small or very small businesses under the $15 million
size standard won 38 licenses for the upper 200 channels.\188\ A second
auction of 800 MHz SMR licenses was conducted in 2002 and included 23
BEA licenses. One bidder claiming small business status won five
licenses.\189\
---------------------------------------------------------------------------

\184\ 47 CFR 90.810, 90.814(b), 90.912.
\185\ 47 CFR 90.810, 90.814(b), 90.912.
\186\ See Alvarez Letter 1999.
\187\ See 900 MHz Specialized Mobile Radio Service Spectrum
Auction Closes: Winning Bidders Announced,'' Public Notice, 19 FCC
Rcd. 3921 (WTB 2004).
\188\ 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).
\189\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------

72. The auction of the 1,053 800 MHz SMR licenses for the General
Category channels was conducted in 2000. Eleven bidders who won 108
licenses for the General Category channels in the 800 MHz SMR band
qualified as small or very small businesses.\190\ In an auction
completed in 2000, a total of 2,800 Economic Area licenses in the lower
80 channels of the 800 MHz SMR service were awarded.\191\ Of the 22
winning bidders, 19 claimed small or very small business status and won
129 licenses. Thus, combining all four auctions, 41 winning bidders for
geographic licenses in the 800 MHz SMR band claimed to be small
businesses.
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\190\ 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).
\191\ See ``800 MHz SMR Service Lower 80 Channels Auction
Closes; Winning Bidders Announced,'' Public Notice, 16 FCC Rcd 1736
(2000).
---------------------------------------------------------------------------

73. 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
not exceeding $15 million. One firm has over $15 million in revenues.
In addition, we do not know how many of these firms have 1,500 or fewer
employees.\192\ 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.
---------------------------------------------------------------------------

\192\ See generally 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

74. 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
small business size standard for small entities specifically applicable
to such incumbent 220 MHz Phase I licensees. To estimate the number of
such licensees that are small businesses, the Commission applies the
small business size standard under the SBA rules applicable. The SBA
has deemed a wireless business to be small if it has 1,500 or fewer
employees.\193\ For this service, the SBA uses the category of Wireless
Telecommunications Carriers (except Satellite). Census data for 2007,
which supersede data contained in the 2002 Census, show that there were
1,383 firms that operated that year.\194\ Of those 1,383, 1,368 had
fewer than 100 employees, and 15 firms had more than 100 employees.
Thus under this category and the associated small business size
standard, the majority of firms can be considered small.
---------------------------------------------------------------------------

\193\ 13 CFR 121.201, NAICS code 517210 (2007 NAICS). The now-
superseded, pre-2007 CFR citations were 13 CFR 121.201, NAICS codes
517211 and 517212 (referring to the 2002 NAICS).
\194\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007
NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

75. 220 MHz Radio Service--Phase II Licensees. The 220 MHz service
has both Phase I and Phase II licenses. The Phase II 220 MHz service
licenses are assigned by auction, where mutually exclusive applications
are accepted. In the 220 MHz Third Report and Order, the Commission
adopted a small business size standard for defining ``small'' and
``very small'' businesses for purposes of determining their eligibility
for special provisions such as bidding credits.\195\ 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.\196\ 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.\197\ The SBA has approved these small size standards.\198\
Auctions of Phase II licenses commenced on and closed in

[[Page 46326]]

1998.\199\ 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.\200\ 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.\201\ 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.\202\ In 2007, the Commission
conducted a fourth auction of the 220 MHz licenses, designated as
Auction 72.\203\ Auction 72, which offered 94 Phase II 220 MHz Service
licenses, concluded in 2007.\204\ In this auction, five winning bidders
won a total of 76 licenses. Two winning bidders identified themselves
as very small businesses won 56 of the 76 licenses. One of the winning
bidders that identified themselves as a small business won 5 of the 76
licenses won.
---------------------------------------------------------------------------

\195\ 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).
\196\ Id. at 11068 para. 291.
\197\ Id.
\198\ See Letter to Daniel Phythyon, Chief, Wireless
Telecommunications Bureau, Federal Communications Commission, from
Aida Alvarez, Administrator, Small Business Administration, dated
January 6, 1998 (Alvarez to Phythyon Letter 1998).
\199\ See generally 220 MHz Service Auction Closes, Public
Notice, 14 FCC Rcd 605 (WTB 1998).
\200\ See FCC Announces It Is Prepared To Grant 654 Phase II 220
MHz Licenses After Final Payment Is Made, Public Notice, 14 FCC Rcd
1085 (WTB 1999).
\201\ See Phase II 220 MHz Service Spectrum Auction Closes,
Public Notice, 14 FCC Rcd 11218 (WTB 1999).
\202\ See Multi-Radio Service Auction Closes, Public Notice, 17
FCC Rcd 1446 (WTB 2002).
\203\ See ``Auction of Phase II 220 MHz Service Spectrum
Scheduled for June 20, 2007, Notice and Filing Requirements, Minimum
Opening Bids, Upfront Payments and Other Procedures for Auction 72,
Public Notice, 22 FCC Rcd 3404 (2007).
\204\ See Auction of Phase II 220 MHz Service Spectrum Licenses
Closes, Winning Bidders Announced for Auction 72, Down Payments due
July 18, 2007, FCC Forms 601 and 602 due July 18, 2007, Final
Payments due August 1, 2007, Ten-Day Petition to Deny Period, Public
Notice, 22 FCC Rcd 11573 (2007).
---------------------------------------------------------------------------

76. Private Land Mobile Radio (``PLMR''). PLMR systems serve an
essential role in a range of industrial, business, land transportation,
and public safety activities. These radios are used by companies of all
sizes operating in all U.S. business categories, and are often used in
support of the licensee's primary (non-telecommunications) business
operations. For the purpose of determining whether a licensee of a PLMR
system is a small business as defined by the SBA, we use the broad
census category, Wireless Telecommunications Carriers (except
Satellite). This definition provides that a small entity is any such
entity employing no more than 1,500 persons.\205\ 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.\206\
---------------------------------------------------------------------------

\205\ See 13 CFR 121.201, NAICS code 517210.
\206\ See generally 13 CFR 121.201.
---------------------------------------------------------------------------

77. As of March 2010, there were 424,162 PLMR licensees operating
921,909 transmitters in the PLMR bands below 512 MHz. We note that any
entity engaged in a commercial activity is eligible to hold a PLMR
license, and that any revised rules in this context could therefore
potentially impact small entities covering a great variety of
industries.
78. Fixed Microwave Services. Microwave services include common
carrier,\207\ private-operational fixed,\208\ and broadcast auxiliary
radio services.\209\ They also include the Local Multipoint
Distribution Service (``LMDS''),\210\ the Digital Electronic Message
Service (``DEMS''),\211\ and the 24 GHz Service,\212\ where licensees
can choose between common carrier and non-common carrier status.\213\
The Commission has not yet defined a small business with respect to
microwave services. For purposes of this IRFA, the Commission will use
the SBA's definition applicable to Wireless Telecommunications Carriers
(except satellite)--i.e., an entity with no more than 1,500 persons is
considered small.\214\ For the category of Wireless Telecommunications
Carriers (except Satellite), Census data for 2007 shows that there were
1,383 firms that operated that year.\215\ Of those 1,383, 1,368 had
fewer than 100 employees, and 15 firms had more than 100 employees.
Thus under this category and the associated small business size
standard, the majority of firms can be considered small. The Commission
notes that the number of firms does not necessarily track the number of
licensees. The Commission estimates that virtually all of the Fixed
Microwave licensees (excluding broadcast auxiliary licensees) would
qualify as small entities under the SBA definition.
---------------------------------------------------------------------------

\207\ See 47 CFR part 101, subparts C and I.
\208\ See id. subparts C and H.
\209\ Auxiliary Microwave Service is governed by part 74 of
Title 47 of the Commission's rules. See 47 CFR part 74. 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 TV pickups, which
relay signals from a remote location back to the studio.
\210\ See 47 CFR part 101, subpart L.
\211\ See id. subpart G.
\212\ See id.
\213\ See 47 CFR 101.533, 101.1017.
\214\ 13 CFR 121.201, NAICS code 517210.
\215\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007
NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
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79. 39 GHz Service. The Commission adopted small business size
standards for 39 GHz licenses. A ``small business'' is defined as an
entity that, together with its affiliates and controlling principals,
has average gross revenues not exceeding $40 million in the preceding
three years.\216\ A ``very small business'' is defined as an entity
that, together with its affiliates and controlling principals, has
average gross revenues of not more than $15 million for the preceding
three years.\217\ The SBA has approved these small business size
standards.\218\ In 2000, the Commission conducted an auction of 2,173
39 GHz licenses. A total of 18 bidders who claimed small or very small
business status won 849 licenses.
---------------------------------------------------------------------------

\216\ See Amendment of the Commission's Rules Regarding the
37.0-38.6 GHz and 38.6-40.0 GHz Bands, ET Docket No. 95-183, Report
and Order, 12 FCC Rcd 18600 (1997).
\217\ Id.
\218\ See Letter from Aida Alvarez, Administrator, SBA, to
Kathleen O'Brien Ham, Chief, Auctions and Industry Analysis
Division, WTB, FCC (Feb. 4, 1998); see Letter from Hector Barreto,
Administrator, SBA, to Margaret Wiener, Chief, Auctions and Industry
Analysis Division, WTB, FCC (Jan. 18, 2002).
---------------------------------------------------------------------------

80. 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.\219\ 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 years.\220\ An
additional small business size standard for ``very small business'' was
added as

[[Page 46327]]

an entity that, together with its affiliates, has average gross
revenues of not more than $15 million for the preceding three
years.\221\ The SBA has approved these small business size standards in
the context of LMDS auctions.\222\ There were 93 winning bidders that
qualified as small entities in the LMDS auctions. A total of 93 small
and very small business bidders won approximately 277 A Block licenses
and 387 B Block licenses. In 1999, the Commission re-auctioned 161
licenses; there were 32 small and very small businesses winning that
won 119 licenses.
---------------------------------------------------------------------------

\219\ 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, CC Docket No. 92-297, Second Report and Order,
Order on Reconsideration, and Fifth Notice of Proposed Rule Making,
12 FCC Rcd 12545, 12689-90, para. 348 (1997) (``LMDS Second Report
and Order'').
\220\ See LMDS Second Report and Order, 12 FCC Rcd at 12689-90,
para. 348.
\221\ See id.
\222\ See Alvarez to Phythyon Letter 1998.
---------------------------------------------------------------------------

81. 218-219 MHz Service. The first auction of 218-219 MHz Service
(previously referred to as the Interactive and Video Data Service or
IVDS) licenses resulted in 170 entities winning licenses for 594
Metropolitan Statistical Areas (``MSAs'').\223\ Of the 594 licenses,
557 were won by 167 entities qualifying as a small business. For that
auction, the Commission defined a small business as an entity that,
together with its affiliates, has no more than a $6 million net worth
and, after federal income taxes (excluding any carry over losses), has
no more than $2 million in annual profits each year for the previous
two years.\224\ In the 218-219 MHz Report and Order and Memorandum
Opinion and Order, the Commission revised its small business size
standards for the 218-219 MHz Service and 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.\225\ The Commission defined a ``very small business'' as an
entity that, together with its affiliates and persons or entities that
hold interests in such an entity and its affiliates, has average annual
gross revenues not exceeding $3 million for the preceding three
years.\226\ The SBA has approved these definitions.\227\
---------------------------------------------------------------------------

\223\ See ``Interactive Video and Data Service (IVDS)
Applications Accepted for Filing,'' Public Notice, 9 FCC Rcd 6227
(1994).
\224\ Implementation of Section 309(j) of the Communications
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330
(1994).
\225\ 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).
\226\ Id.
\227\ See Alvarez to Phythyon Letter 1998.
---------------------------------------------------------------------------

82. Location and Monitoring Service (``LMS''). Multilateration LMS
systems use non-voice radio techniques to determine the location and
status of mobile radio units. For auctions of LMS licenses, the
Commission has defined a ``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.\228\
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.\229\ These
definitions have been approved by the SBA.\230\ An auction of LMS
licenses was conducted in 1999. Of the 528 licenses auctioned, 289
licenses were sold to four small businesses.
---------------------------------------------------------------------------

\228\ Amendment of Part 90 of the Commission's Rules to Adopt
Regulations for Automatic Vehicle Monitoring Systems, Second Report
and Order, 13 FCC Rcd 15182, 15192, para. 20 (1998) (``Automatic
Vehicle Monitoring Systems Second Report and Order''); see also 47
CFR 90.1103.
\229\ Automatic Vehicle Monitoring Systems Second Report and
Order, 13 FCC Rcd at 15192, para. 20; see also 47 CFR 90.1103.
\230\ See Alvarez Letter 1998.
---------------------------------------------------------------------------

83. Rural Radiotelephone Service. The Commission has not adopted a
size standard for small businesses specific to the Rural Radiotelephone
Service.\231\ A significant subset of the Rural Radiotelephone Service
is the Basic Exchange Telephone Radio System (``BETRS'').\232\ For
purposes of its analysis of the Rural Radiotelephone Service, the
Commission uses the SBA small business size standard for the category
Wireless Telecommunications Carriers (except satellite),'' which is
1,500 or fewer employees.\233\ Census data for 2007 shows that there
were 1,383 firms that operated that year.\234\ Of those 1,383, 1,368
had fewer than 100 employees, and 15 firms had more than 100 employees.
Thus under this category and the associated small business size
standard, the majority of firms in the Rural Radiotelephone Service can
be considered small.
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\231\ The service is defined in section 22.99 of the
Commission's rules, 47 CFR 22.99.
\232\ BETRS is defined in sections 22.757 and 22.759 of the
Commission's rules, 47 CFR 22.757 and 22.759.
\233\ 13 CFR 121.201, NAICS code 517210.
\234\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007
NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
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84. Air-Ground Radiotelephone Service.\235\ The Commission has
previously used the SBA's small business definition applicable to
Wireless Telecommunications Carriers (except Satellite), i.e., an
entity employing no more than 1,500 persons.\236\ 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.\237\ 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.\238\ These definitions were approved by the SBA.\239\ In 2006,
the Commission completed an auction of nationwide commercial Air-Ground
Radiotelephone Service licenses in the 800 MHz band (Auction 65). The
auction closed with two winning bidders winning two Air-Ground
Radiotelephone Services licenses. Neither of the winning bidders
claimed small business status.
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\235\ The service is defined in section 22.99 of the
Commission's rules, 47 CFR 22.99.
\236\ 13 CFR 121.201, NAICS codes 517210.
\237\ 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).
\238\ Id.
\239\ See Letter from Hector V. Barreto, Administrator, SBA, to
Gary D. Michaels, Deputy Chief, Auctions and Spectrum Access
Division, WTB, FCC (Sept. 19, 2005).
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85. Aviation and Marine Radio Services. Small businesses in the
aviation and marine radio services use a very high frequency (``VHF'')
marine or aircraft radio and, as appropriate, an emergency position-
indicating radio beacon (and/or radar) or an emergency locator
transmitter. The Commission has not developed a small business size
standard specifically applicable to these small businesses. For
purposes of this analysis, the Commission uses the SBA small business
size standard for the category Wireless Telecommunications Carriers
(except satellite),'' which is 1,500 or fewer employees.\240\ Census
data for 2007 shows that there were 1,383 firms that operated that
year.\241\ Of those 1,383, 1,368 had fewer than 100 employees, and 15
firms had more than 100 employees. Thus under this category and the
associated small

[[Page 46328]]

business size standard, the majority of firms can be considered small.
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\240\ 13 CFR 121.201, NAICS code 517210.
\241\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007
NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
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86. Offshore Radiotelephone Service. This service operates on
several UHF television broadcast channels that are not used for
television broadcasting in the coastal areas of states bordering the
Gulf of Mexico.\242\ There are presently approximately 55 licensees in
this service. The Commission is unable to estimate at this time the
number of licensees that would qualify as small under the SBA's small
business size standard for the category of Wireless Telecommunications
Carriers (except Satellite). Under that standard.\243\ Under that SBA
small business size standard, a business is small if it has 1,500 or
fewer employees.\244\ Census data for 2007 shows that there were 1,383
firms that operated that year.\245\ Of those 1,383, 1,368 had fewer
than 100 employees, and 15 firms had more than 100 employees. Thus
under this category and the associated small business size standard,
the majority of firms can be considered small.
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\242\ This service is governed by subpart I of part 22 of the
Commission's rules. See 47 CFR 22.1001-22.1037.
\243\ 13 CFR 121.201, NAICS code 517210.
\244\ Id.
\245\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007
NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
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87. Multiple Address Systems (``MAS''). Entities using MAS
spectrum, in general, fall into two categories: (1) Those using the
spectrum for profit-based uses, and (2) those using the spectrum for
private internal uses. The Commission defines a small business for MAS
licenses as an entity that has average gross revenues of less than $15
million in the preceding three years.\246\ A very small business is
defined as an entity that, together with its affiliates, has average
gross revenues of not more than $3 million for the preceding three
years.\247\ The SBA has approved these definitions.\248\ The majority
of these entities will most likely be licensed in bands where the
Commission has implemented a geographic area licensing approach that
would require the use of competitive bidding procedures to resolve
mutually exclusive applications. The Commission's licensing database
indicates that, as of March 5, 2010, there were over 11,500 MAS station
authorizations. In 2001, an auction of 5,104 MAS licenses in 176 EAs
was conducted.\249\ Seven winning bidders claimed status as small or
very small businesses and won 611 licenses. In 2005, the Commission
completed an auction (Auction 59) of 4,226 MAS licenses in the Fixed
Microwave Services from the 928/959 and 932/941 MHz bands. Twenty-six
winning bidders won a total of 2,323 licenses. Of the 26 winning
bidders in this auction, five claimed small business status and won
1,891 licenses.
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\246\ See Amendment of the Commission's Rules Regarding Multiple
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, para.
123 (2000).
\247\ Id.
\248\ See Alvarez Letter 1999.
\249\ See ``Multiple Address Systems Spectrum Auction Closes,''
Public Notice, 16 FCC Rcd 21011 (2001).
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88. With respect to entities that use, or seek to use, MAS spectrum
to accommodate internal communications needs, we note that MAS serves
an essential role in a range of industrial, safety, business, and land
transportation activities. MAS radios are used by companies of all
sizes, operating in virtually all U.S. business categories, and by all
types of public safety entities. For the majority of private internal
users, the small business size standard developed by the SBA would be
more appropriate. The applicable size standard in this instance appears
to be that of Wireless Telecommunications Carriers (except Satellite).
This definition provides that a small entity is any such entity
employing no more than 1,500 persons.\250\ 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.
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\250\ See 13 CFR 121.201, NAICS code 517210.
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89. 1.4 GHz Band Licensees. The Commission conducted an auction of
64 1.4 GHz band licenses in the paired 1392-1395 MHz and 1432-1435 MHz
bands, and in the unpaired 1390-1392 MHz band in 2007.\251\ For these
licenses, the Commission defined ``small business'' as an entity that,
together with its affiliates and controlling interests, had average
gross revenues not exceeding $40 million for the preceding three years,
and a ``very small business'' as an entity that, together with its
affiliates and controlling interests, has had average annual gross
revenues not exceeding $15 million for the preceding three years.\252\
Neither of the two winning bidders claimed small business status.\253\
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\251\ See ``Auction of 1.4 GHz Band Licenses Scheduled for
February 7, 2007,'' Public Notice, 21 FCC Rcd 12393 (WTB 2006);
``Auction of 1.4 GHz Band Licenses Closes; Winning Bidders Announced
for Auction No. 69,'' Public Notice, 22 FCC Rcd 4714 (2007)
(``Auction No. 69 Closing PN'').
\252\ Auction No. 69 Closing PN, Attachment C.
\253\ See Auction No. 69 Closing PN.
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90. 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. For
this service, the Commission uses the SBA small business size standard
for the category ``Wireless Telecommunications Carriers (except
satellite),'' which is 1,500 or fewer employees.\254\ To gauge small
business prevalence for these cable services we must, however, use the
most current census data. Census data for 2007 shows that there were
1,383 firms that operated that year.\255\ Of those 1,383, 1,368 had
fewer than 100 employees, and 15 firms had more than 100 employees.
Thus under this category and the associated small business size
standard, the majority of firms can be considered small. The Commission
notes that the Census' use of the classifications ``firms'' does not
track the number of ``licenses''. The Commission believes that there
are only two licensees in the 24 GHz band that were relocated from the
18 GHz band, Teligent \256\ and TRW, Inc. It is our understanding that
Teligent and its related companies have less 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.
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\254\ 13 CFR 121.201, NAICS code 517210.
\255\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007
NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.>
\256\ 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.
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91. Future 24 GHz Licensees. With respect to new applicants for
licenses in the 24 GHz band, for the purpose of determining eligibility
for bidding credits, the Commission established three small business
definitions. An ``entrepreneur'' is defined as an entity that, together
with controlling interests and affiliates, has average annual gross
revenues for the three preceding years not exceeding $40 million.\257\
A ``small business'' 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.\258\ A ``very
small business'' in the 24 GHz band is defined as an entity that,
together with

[[Page 46329]]

controlling interests and affiliates, has average gross revenues not
exceeding $3 million for the preceding three years.\259\ The SBA has
approved these small business size standards.\260\ In a 2004 auction of
24 GHz licenses, three winning bidders won seven licenses.\261\ Two of
the winning bidders were very small businesses that won five licenses.
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\257\ 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)(3).
\258\ 24 GHz Report and Order, 15 FCC Rcd at 16967 para. 77; see
also 47 CFR 101.538(a)(2).
\259\ 24 GHz Report and Order, 15 FCC Rcd at 16967 para. 77; see
also 47 CFR 101.538(a)(1).
\260\ See Letter to Margaret W. Wiener, Deputy Chief, Auctions
and Industry Analysis Division, Wireless Telecommunications Bureau,
FCC, from Gary M. Jackson, Assistant Administrator, SBA (July 28,
2000).
\261\ Auction of 24 GHz Service Spectrum Auction Closes, Winning
Bidders Announced for Auction 56, Down Payments Due August 16, 2004,
Final Payments Due August 30, 2004, Ten-Day Petition to Deny Period,
Public Notice, 19 FCC Rcd 14738 (2004).
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92. Broadband Radio Service and Educational Broadband Service.
Broadband Radio Service systems, previously referred to as Multipoint
Distribution Service (``MDS'') and Multichannel Multipoint Distribution
Service (``MMDS'') systems, and ``wireless cable,'' transmit video
programming to subscribers and provide two-way high speed data
operations using the microwave frequencies of the Broadband Radio
Service (``BRS'') and Educational Broadband Service (``EBS'')
(previously referred to as the Instructional Television Fixed Service
(``ITFS'').\262\ In connection with the 1996 BRS auction, the
Commission established a small business size standard as an entity that
had annual average gross revenues of no more than $40 million in the
previous three years.\263\ The BRS auctions resulted in 67 successful
bidders obtaining licensing opportunities for 493 Basic Trading Areas
(``BTAs''). Of the 67 auction winners, 61 met the definition of a small
business. BRS also includes licensees of stations authorized prior to
the auction. At this time, we estimate that of the 61 small business
BRS auction winners, 48 remain small business licensees. In addition to
the 48 small businesses that hold BTA authorizations, there are
approximately 392 incumbent BRS licensees that are considered small
entities.\264\ After adding the number of small business auction
licensees to the number of incumbent licensees not already counted, we
find that there are currently approximately 440 BRS licensees that are
defined as small businesses under either the SBA or the Commission's
rules. In 2009, the Commission conducted Auction 86, the sale of 78
licenses in the BRS areas.\265\ The Commission offered three levels of
bidding credits: (i) A bidder with attributed average annual gross
revenues that exceed $15 million and do not exceed $40 million for the
preceding three years (small business) will receive a 15 percent
discount on its winning bid; (ii) a bidder with attributed average
annual gross revenues that exceed $3 million and do not exceed $15
million for the preceding three years (very small business) will
receive a 25 percent discount on its winning bid; and (iii) a bidder
with attributed average annual gross revenues that do not exceed $3
million for the preceding three years (entrepreneur) will receive a 35
percent discount on its winning bid.\266\ Auction 86 concluded in 2009
with the sale of 61 licenses.\267\ Of the ten winning bidders, two
bidders that claimed small business status won 4 licenses; one bidder
that claimed very small business status won three licenses; and two
bidders that claimed entrepreneur status won six licenses.
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\262\ Amendment of Parts 21 and 74 of the Commission's Rules
with Regard to Filing Procedures in the Multipoint Distribution
Service and in the Instructional Television Fixed Service and
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, MM Docket No. 94-131, PP Docket No. 93-253,
Report and Order, 10 FCC Rcd 9589, 9593 para. 7 (1995).
\263\ 47 CFR 21.961(b)(1).
\264\ 47 U.S.C. 309(j). Hundreds of stations were licensed to
incumbent MDS licensees prior to implementation of section 309(j) of
the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business
size standard of 1,500 or fewer employees.
\265\ Auction of Broadband Radio Service (BRS) Licenses,
Scheduled for October 27, 2009, Notice and Filing Requirements,
Minimum Opening Bids, Upfront Payments, and Other Procedures for
Auction 86, Public Notice, 24 FCC Rcd 8277 (2009).
\266\ Id. at 8296.
\267\ Auction of Broadband Radio Service Licenses Closes,
Winning Bidders Announced for Auction 86, Down Payments Due November
23, 2009, Final Payments Due December 8, 2009, Ten-Day Petition to
Deny Period, Public Notice, 24 FCC Rcd 13572 (2009).
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93. In addition, the SBA's Cable Television Distribution Services
small business size standard is applicable to EBS. There are presently
2,032 EBS licensees. All but 100 of these licenses are held by
educational institutions. Educational institutions are included in this
analysis as small entities.\268\ Thus, we estimate that at least 1,932
licensees are small businesses. Since 2007, Cable Television
Distribution Services have been defined within the broad economic
census category of Wired Telecommunications Carriers; that category is
defined as follows: ``This industry comprises establishments primarily
engaged in operating and/or providing access to transmission facilities
and infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired telecommunications
networks. Transmission facilities may be based on a single technology
or a combination of technologies.'' \269\ For these services, the
Commission uses the SBA small business size standard for the category
``Wireless Telecommunications Carriers (except satellite),'' which is
1,500 or fewer employees.\270\ To gauge small business prevalence for
these cable services we must, however, use the most current Census
data. According to Census Bureau data for 2007, there were a total of
955 firms in this previous category that operated for the entire
year.\271\ Of this total, 939 firms employed 999 or fewer employees,
and 16 firms employed 1,000 employees or more.\272\ Thus, the majority
of these firms can be considered small.
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\268\ 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.
\269\ U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired
Telecommunications Carriers, (partial definition), www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\270\ 13 CFR 121.201, NAICS code 517210.
\271\ U.S. Census Bureau, 2007 Economic Census, Subject Series:
Information, Table 5, Employment Size of Firms for the United
States: 2007, NAICS code 5171102 (issued November 2010).
\272\ Id.
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94. Television Broadcasting. This Economic Census category
``comprises establishments primarily engaged in broadcasting images
together with sound. These establishments operate television
broadcasting studios and facilities for the programming and
transmission of programs to the public.'' \273\ The SBA has created the
following small business size standard for Television Broadcasting
firms: Those having $14 million or less in annual receipts.\274\ The
Commission has estimated the number of licensed commercial television
stations to be 1,387.\275\ In addition, according to Commission staff
review of the BIA Advisory Services, LLC's Media Access Pro Television
Database on March 28, 2012, about 950 of an estimated 1,300 commercial
television stations (or approximately 73 percent) had revenues

[[Page 46330]]

of $14 million or less.\276\ We therefore estimate that the majority of
commercial television broadcasters are small entities.
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\273\ U.S. Census Bureau, 2007 NAICS Definitions, ``515120
Television Broadcasting'' (partial definition); https://www.census.gov/naics/2007/def/ND515120.HTM#N515120.
\274\ 13 CFR 121.201, NAICS code 515120 (updated for inflation
in 2010).
\275\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; https://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-311837A1.pdf.
\276\ We recognize that BIA's estimate differs slightly from the
FCC total given supra.
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95. We note, however, that in assessing whether a business concern
qualifies as small under the above definition, business (control)
affiliations \277\ must be included. Our estimate, therefore, likely
overstates the number of small entities that might be affected by our
action because the revenue figure on which it is based does not include
or aggregate revenues from affiliated companies. In addition, an
element of the definition of ``small business'' is that the entity not
be dominant in its field of operation. We are unable at this time to
define or quantify the criteria that would establish whether a specific
television station is dominant in its field of operation. Accordingly,
the estimate of small businesses to which rules may apply does not
exclude any television station from the definition of a small business
on this basis and is therefore possibly over-inclusive to that extent.
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\277\ ``[Business concerns] are affiliates of each other when
one concern controls or has the power to control the other or a
third party or parties controls or has the power to control both.''
13 CFR 21.103(a)(1).
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96. In addition, the Commission has estimated the number of
licensed noncommercial educational (NCE) television stations to be
396.\278\ These stations are non-profit, and therefore considered to be
small entities.\279\
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\278\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
\279\ See generally 5 U.S.C. 601(4), (6).
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97. In addition, there are also 2,528 low power television
stations, including Class A stations (LPTV).\280\ Given the nature of
these services, we will presume that all LPTV licensees qualify as
small entities under the above SBA small business size standard.
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\280\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
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98. Radio Broadcasting. This Economic Census category ``comprises
establishments primarily engaged in broadcasting aural programs by
radio to the public. Programming may originate in their own studio,
from an affiliated network, or from external sources.'' \281\ The SBA
has established a small business size standard for this category, which
is: Such firms having $7 million or less in annual receipts.\282\
According to Commission staff review of BIA Advisory Services, LLC's
Media Access Pro Radio Database on March 28, 2012, about 10,759 (97%)
of 11,102 commercial radio stations had revenues of $7 million or less.
Therefore, the majority of such entities are small entities.
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\281\ U.S. Census Bureau, 2007 NAICS Definitions, ``515112 Radio
Stations''; https://www.census.gov/naics/2007/def/ND515112.HTM#N515112.
\282\ 13 CFR 121.201, NAICS code 515112 (updated for inflation
in 2010).
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99. We note, however, that in assessing whether a business concern
qualifies as small under the above size standard, business affiliations
must be included.\283\ In addition, to be determined to be a ``small
business,'' the entity may not be dominant in its field of
operation.\284\ We note that it is difficult at times to assess these
criteria in the context of media entities, and our estimate of small
businesses may therefore be over-inclusive.
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\283\ ``Concerns and entities are affiliates of each other when
one controls or has the power to control the other, or a third party
or parties controls or has the power to control both. It does not
matter whether control is exercised, so long as the power to control
exists.'' 13 CFR 121.103(a)(1) (an SBA regulation).
\284\ 13 CFR 121.102(b) (an SBA regulation).
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100. Auxiliary, Special Broadcast and Other Program Distribution
Services. This service involves a variety of transmitters, generally
used to relay broadcast programming to the public (through translator
and booster stations) or within the program distribution chain (from a
remote news gathering unit back to the station). The Commission has not
developed a definition of small entities applicable to broadcast
auxiliary licensees. The applicable definitions of small entities are
those, noted previously, under the SBA rules applicable to radio
broadcasting stations and television broadcasting stations.\285\
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\285\ 13 CFR 121.201, NAICS codes 515112 and 515120.
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101. The Commission estimates that there are approximately 6,099 FM
translators and boosters.\286\ The Commission does not collect
financial information on any broadcast facility, and the Department of
Commerce does not collect financial information on these auxiliary
broadcast facilities. We believe that most, if not all, of these
auxiliary facilities could be classified as small businesses by
themselves. We also recognize that most commercial translators and
boosters are owned by a parent station which, in some cases, would be
covered by the revenue definition of small business entity discussed
above. These stations would likely have annual revenues that exceed the
SBA maximum to be designated as a small business ($7.0 million for a
radio station or $14.0 million for a TV station). Furthermore, they do
not meet the Small Business Act's definition of a ``small business
concern'' because they are not independently owned and operated.\287\
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\286\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
\287\ See 15 U.S.C. 632.
---------------------------------------------------------------------------

102. Cable Television Distribution Services. Since 2007, these
services have been defined within the broad economic census category of
Wired Telecommunications Carriers; that category is defined as follows:
``This industry comprises establishments primarily engaged in operating
and/or providing access to transmission facilities and infrastructure
that they own and/or lease for the transmission of voice, data, text,
sound, and video using wired telecommunications networks. Transmission
facilities may be based on a single technology or a combination of
technologies.'' \288\ The SBA has developed a small business size
standard for this category, which is: All such firms having 1,500 or
fewer employees. Census data for 2007 shows that there were 1,383 firms
that operated that year.\289\ Of those 1,383, 1,368 had fewer than 100
employees, and 15 firms had more than 100 employees. Thus under this
category and the associated small business size standard, the majority
of such firms can be considered small.
---------------------------------------------------------------------------

\288\ U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired
Telecommunications Carriers, (partial definition), https://www.census.gov/naics/2007/def/ND517110.HTM#N517110 (last visited
Oct. 21, 2009).
\289\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007
NAICS code 517210 (rel. Oct. 20, 2009), https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
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103. 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.\290\ Industry
data indicate that, of 1,076 cable operators nationwide, all but eleven
are small under this size standard.\291\ In addition, under the

[[Page 46331]]

Commission's rules, a ``small system'' is a cable system serving 15,000
or fewer subscribers.\292\ Industry data indicate that, of 6,635
systems nationwide, 5,802 systems have under 10,000 subscribers, and an
additional 302 systems have 10,000-19,999 subscribers.\293\ Thus, under
this second size standard, most cable systems are small.
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\290\ 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).
\291\ 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.
\292\ 47 CFR 76.901(c).
\293\ Warren Communications News, Television & Cable Factbook
2008, ``U.S. Cable Systems by Subscriber Size,'' page F-2 (data
current as of Oct. 2007). The data do not include 851 systems for
which classifying data were not available.
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104. 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.'' \294\ The Commission has determined that an operator
serving fewer than 677,000 subscribers shall be deemed a small
operator, if its annual revenues, when combined with the total annual
revenues of all its affiliates, do not exceed $250 million in the
aggregate.\295\ Industry data indicate that, of 1,076 cable operators
nationwide, all but ten are small under this size standard.\296\ 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,\297\ and therefore we are unable
to estimate more accurately the number of cable system operators that
would qualify as small under this size standard.
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\294\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
\295\ 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).
\296\ 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.
\297\ 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).
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105. Open Video Systems. Open Video Service (OVS) systems provide
subscription services.\298\ The open video system (``OVS'') framework
was established in 1996, and is one of four statutorily recognized
options for the provision of video programming services by local
exchange carriers.\299\ The OVS framework provides opportunities for
the distribution of video programming other than through cable systems.
Because OVS operators provide subscription services,\300\ OVS falls
within the SBA small business size standard covering cable services,
which is ``Wired Telecommunications Carriers.'' \301\ The SBA has
developed a small business size standard for this category, which is:
All such firms having 1,500 or fewer employees. To gauge small business
prevalence for the OVS service, the Commission relies on data currently
available from the U.S. Census for the year 2007. According to that
source, there were 3,188 firms that in 2007 were Wired
Telecommunications Carriers. Of these, 3,144 operated with less than
1,000 employees, and 44 operated with more than 1,000 employees.
However, as to the latter 44 there is no data available that shows how
many operated with more than 1,500 employees. Based on this data, the
majority of these firms can be considered small.\302\ In addition, we
note that the Commission has certified some OVS operators, with some
now providing service.\303\ Broadband service providers (``BSPs'') are
currently the only significant holders of OVS certifications or local
OVS franchises.\304\ The Commission does not have financial or
employment information regarding the entities authorized to provide
OVS, some of which may not yet be operational. Thus, at least some of
the OVS operators may qualify as small entities. The Commission further
notes that it has certified approximately 45 OVS operators to serve 75
areas, and some of these are currently providing service.\305\
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 44 OVS operators (those remaining) might qualify
as small businesses that may be affected by the rules and policies
adopted herein.
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\298\ See 47 U.S.C. 573.
\299\ 47 U.S.C. 571(a)(3)-(4). See 13th Annual Report, 24 FCC
Rcd at 606, para. 135.
\300\ See 47 U.S.C. 573.
\301\ U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired
Telecommunications Carriers, https://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\302\ See https://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
\303\ A list of OVS certifications may be found at https://www.fcc.gov/mb/ovs/csovscer.html.
\304\ See 13th Annual Report, 24 FCC Rcd at 606-07 para. 135.
BSPs are newer firms that are building state-of-the-art, facilities-
based networks to provide video, voice, and data services over a
single network.
\305\ See https://www.fcc.gov/mb/ovs/csovscer.html (current as of
February 2007).
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106. Cable Television Relay Service. The industry in which Cable
Television Relay Services operate comprises establishments primarily
engaged in operating and/or providing access to transmission facilities
and infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired telecommunications
networks. Transmission facilities may be based on a single technology
or a combination of technologies. Establishments in this industry use
the wired telecommunications network facilities that they operate to
provide a variety of services, such as wired telephony services,
including VoIP services; wired (cable) audio and video programming
distribution; and wired broadband Internet services. By exception,
establishments providing satellite television distribution services
using facilities and infrastructure that they operate are included in
this industry.\306\ The category designated by the SBA for this
industry is ``Wired Telecommunications Carriers.'' \307\ The SBA has
developed a small business size standard for this category, which is:
All such firms having 1,500 or fewer employees. According to Census
Bureau data for 2007, Census data for 2007 shows 3,188 firms in this
category.\308\ Of these 3,188 firms, only 44 had 1,000 or more
employees. While we could not find precise Census data on the number of
firms with in the group with 1,500 or fewer employees, it is clear that
at least 3,144 firms with fewer than 1,000 employees would be in that
group. On this basis, the Commission estimates that a substantial
majority of the providers of interconnected VoIP, non-

[[Page 46332]]

interconnected VoIP, or both in this category, are small.\309\
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\306\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition); https://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\307\ 13 CFR 121.201, NAICS code 517110.
\308\ https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
\309\ Id. As noted in para. 18 above with regard to the
distinction between manufacturers of equipment used to provide
interconnected VoIP and manufactures of equipment to provide non-
interconnected VoIP, our estimates of the number of the number of
providers of non-interconnected VoIP (and the number of small
entities within that group) are likely overstated because we could
not draw in the data a distinction between such providers and those
that provide interconnected VoIP. However, in the absence of more
accurate data, we present these figures to provide as thorough an
analysis of the impact on small entities as we can at this time.
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107. 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 defines 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.\310\ These definitions were approved by the SBA.\311\ 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.\312\ Eight of the ten winning bidders claimed small
business status and won 144 of the licenses. The Commission also held
an auction of MVDDS licenses on December 7, 2005 (Auction 63). Of the
three winning bidders who won 22 licenses, two winning bidders, winning
21 of the licenses, claimed small business status.\313\
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\310\ 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).
\311\ See Letter from Hector V. Barreto, Administrator, U.S.
Small Business Administration, to Margaret W. Wiener, Chief,
Auctions and Industry Analysis Division, WTB, FCC (Feb. 13, 2002).
\312\ See ``Multichannel Video Distribution and Data Service
Auction Closes,'' Public Notice, 19 FCC Rcd 1834 (2004).
\313\ 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).
---------------------------------------------------------------------------

108. Amateur Radio Service. These licensees are held by individuals
in a noncommercial capacity; these licensees are not small entities.
109. Personal Radio Services. Personal radio services provide
short-range, low power radio for personal communications, radio
signaling, and business communications not provided for in other
services. The Personal Radio Services include spectrum licensed under
Part 95 of our rules.\314\ 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'').\315\ There are a variety of
methods used to license the spectrum in these rule parts, from
licensing by rule, to conditioning operation on successful completion
of a required test, to site-based licensing, to geographic area
licensing. Under the RFA, the Commission is required to make a
determination of which small entities are directly affected by the
rules being proposed. Since all such entities are wireless, we apply
the definition of Wireless Telecommunications Carriers (except
Satellite), pursuant to which a small entity is defined as employing
1,500 or fewer persons.\316\ Many of the licensees in these services
are individuals, and thus are not small entities. In addition, due to
the mostly unlicensed and shared nature of the spectrum utilized in
many of these services, the Commission lacks direct information upon
which to base an estimation of the number of small entities under an
SBA definition that might be directly affected by our action.
---------------------------------------------------------------------------

\314\ 47 CFR part 90.
\315\ The Citizens Band Radio Service, General Mobile Radio
Service, Radio Control Radio Service, Family Radio Service, Wireless
Medical Telemetry Service, Medical Implant Communications Service,
Low Power Radio Service, and Multi-Use Radio Service are governed by
subpart D, subpart A, subpart C, subpart B, subpart H, subpart I,
subpart G, and subpart J, respectively, of part 95 of the
Commission's rules. See generally 47 CFR part 95.
\316\ 13 CFR 121.201, NAICS Code 517210.
---------------------------------------------------------------------------

110. Public Safety Radio Services. Public Safety radio services
include police, fire, local government, forestry conservation, highway
maintenance, and emergency medical services.\317\ There are a total of
approximately 127,540 licensees in these services. Governmental
entities \318\ 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.\319\
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\317\ 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 is presently comprised of
approximately 41,000 licensees that are state, county, or municipal
entities that use the radio for official purposes not covered by
other public safety services. There are approximately 7,000
licensees within the forestry service which is comprised of
licensees from state departments of conservation and private forest
organizations who set up communications networks among fire lookout
towers and ground crews. The approximately 9,000 state and local
governments are licensed for highway maintenance service to 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.
\318\ 47 CFR 1.1162.
\319\ 5 U.S.C. 601(5).
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111. Internet Service Providers. Internet Service Providers, Web
Portals and Other Information Services. In 2007, the SBA recognized two
new small business economic census categories. They are (1) Internet
Publishing and Broadcasting and Web Search Portals,\320\ and (2) All
Other Information Services.\321\
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\320\ 13 CFR 121.201, NAICS code 519130 (establishing a $500,000
revenue ceiling).
\321\ 13 CFR 121.201, NAICS code 519190 (establishing a $6.5
million revenue ceiling).
---------------------------------------------------------------------------

112. Internet Service Providers. The 2007 Economic Census places
these firms, whose services might include voice over Internet protocol
(VoIP), in either of two categories, depending on whether the service
is provided over the provider's own telecommunications facilities
(e.g., cable and DSL ISPs), or over client-supplied telecommunications
connections (e.g., dial-up ISPs). The former are within the category of
Wired Telecommunications Carriers,\322\ which has an SBA small business
size standard of 1,500 or fewer employees.\323\ These are also labeled
``broadband.'' The latter are within the

[[Page 46333]]

category of All Other Telecommunications,\324\ which has a size
standard of annual receipts of $25 million or less.\325\ These are
labeled non-broadband.
---------------------------------------------------------------------------

\322\ U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired
Telecommunications Carriers, https://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\323\ 13 CFR 121.201, NAICS code 517110.
\324\ U.S. Census Bureau, 2007 NAICS Definitions, ``517919 All
Other Telecommunications,'' https://www.census.gov/naics/2007/def/ND517919.HTM#N517919.
\325\ 13 CFR 121.201, NAICS code 517919 (updated for inflation
in 2008).
---------------------------------------------------------------------------

113. The most current Economic Census data for all such firms are
2007 data, which are detailed specifically for ISPs within the
categories above. For the first category, the data show that 396 firms
operated for the entire year, of which 159 had nine or fewer
employees.\326\ For the second category, the data show that 1,682 firms
operated for the entire year.\327\ Of those, 1,675 had annual receipts
below $25 million per year, and an additional two had receipts of
between $25 million and $49,999,999. Consequently, we estimate that the
majority of ISP firms are small entities.
---------------------------------------------------------------------------

\326\ U.S. Census Bureau, 2007 Economic Census, Subject Series:
Information, ``Establishment and Firm Size,'' NAICS code 5171103
(rel. Nov. 19, 2010) (employment size). The data show only two
categories within the whole: The categories for 1-4 employees and
for 5-9 employees.
\327\ U.S. Census Bureau, 2007 Economic Census, Subject Series:
Information, ``Establishment and Firm Size,'' NAICS code 5179191
(rel. Nov. 19, 2010) (receipts size).
---------------------------------------------------------------------------

114. Internet Publishing and Broadcasting and Web Search Portals.
This industry comprises establishments primarily engaged in (1)
publishing and/or broadcasting content on the Internet exclusively or
(2) operating Web sites that use a search engine to generate and
maintain extensive databases of Internet addresses and content in an
easily searchable format (and known as Web search portals). The
publishing and broadcasting establishments in this industry do not
provide traditional (non-Internet) versions of the content that they
publish or broadcast. They provide textual, audio, and/or video content
of general or specific interest on the Internet exclusively.
Establishments known as Web search portals often provide additional
Internet services, such as email, connections to other Web sites,
auctions, news, and other limited content, and serve as a home base for
Internet users.\328\ The SBA deems businesses in this industry with 500
or fewer employees small.\329\ According to Census Bureau data for
2007, there were 2,705 firms that provided one or more of these
services for that entire year. Of these, 2,682 operated with less than
500 employees and 13 operated with to 999 employees.\330\ Consequently,
we estimate the majority of these firms are small entities that may be
affected by our proposed actions.
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\328\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=519130&search=2007%20NAICS%20Search
\329\ https://www.sba.gov/sites/default/files/Size_Standards_Table.pdf.
\330\ https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=1000&-ds_name=EC0751SSSZ5&-_lang=en.
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IV. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements

115. 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, and pay a regulatory fee based on the number of
licenses or call signs.\331\ In some instances, licensees or regulatees
may decide to submit an FCC Form 159 Remittance Advice. Interstate
telephone service providers must compute their annual regulatory fee
based on their interstate and international end-user revenue using
information they already supply to the Commission in compliance with
the Form 499-A, Telecommunications Reporting Worksheet. Compliance with
the fee schedule will require some regulatees to tabulate the number of
units (e.g., cellular telephones, pagers, cable TV subscribers) they
have in service. Regulatees 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
submit a regulatory fee payment, and it can be completed by the
employees responsible for an entity's business records.
---------------------------------------------------------------------------

\331\ See 47 CFR 1.1162 for the general exemptions from
regulatory fees. E.g., Amateur radio licensees (except applicants
for vanity call signs) and operators in other non-licensed services
(e.g., Personal Radio, part 15, ship and aircraft). Governments and
non-profit (exempt under section 501(c) of the Internal Revenue
Code) entities are exempt from payment of regulatory fees and need
not submit payment. Non-commercial educational broadcast licensees
are exempt from regulatory fees as are licensees of auxiliary
broadcast services such as low power auxiliary stations, television
auxiliary service stations, remote pickup stations and aural
broadcast auxiliary stations where such licenses are used in
conjunction with commonly owned non-commercial educational stations.
Emergency Alert System licenses for auxiliary service facilities are
also exempt as are instructional television fixed service licensees.
Regulatory fees are automatically waived for the licensee of any
translator station that: (1) Is not licensed to, in whole or in
part, and does not have common ownership with, the licensee of a
commercial broadcast station; (2) does not derive income from
advertising; and (3) is dependent on subscriptions or contributions
from members of the community served for support. Receive only earth
station permittees are exempt from payment of regulatory fees. A
regulatee will be relieved of its fee payment requirement if its
total fee due, including all categories of fees for which payment is
due by the entity, amounts to less than $10.
---------------------------------------------------------------------------

116. As discussed previously in this Report and Order, the
Commission concluded in its FY 2009 regulatory fee cycle that
regulatees filing their annual regulatory fee payments must begin the
process by entering the Commission's Fee Filer system with a valid FRN
and password. In some instances, it will be necessary to use a specific
FRN and password that is linked to a particular regulatory fee bill.
Going forward, the submission of hardcopy Form 159 documents will not
be permitted for making a regulatory fee payment during the regulatory
fee cycle. By requiring regulatees to use Fee Filer to begin the
regulatory fee payment process, errors resulting from illegible
handwriting on hardcopy Form 159's will be reduced, and the Commission
will be able to create an electronic record of regulatee payment
attributes that are more easily traceable than payments that were
previously mailed in with a hardcopy Form 159.
117. 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.\332\ If payment is not received, new or
pending applications may be dismissed, and existing authorizations may
be subject to rescission.\333\ Further, in accordance with the DCIA,
federal agencies may bar a person or entity from obtaining a federal
loan or loan insurance guarantee if that person or entity fails to pay
a delinquent debt owed to any federal agency.\334\ Nonpayment of
regulatory fees is a debt owed to the United States pursuant to 31
U.S.C. 3711 et seq., and the DCIA. Appropriate enforcement measures, as
well as administrative and judicial remedies, may be exercised by the
Commission. Debts owed to the Commission may result in a person or
entity being denied a federal loan or loan guarantee pending before
another federal agency until such obligations are paid.\335\
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\332\ 47 CFR 1.1164.
\333\ 47 CFR 1.1164(c).
\334\ Public Law 104-134, 110 Stat. 1321 (1996).
\335\ 31 U.S.C. 7701(c)(2)(B).
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118. The Commission's rules currently provide for relief in
exceptional circumstances. Persons or entities may request a waiver,
reduction or deferment of payment of the regulatory fee.\336\ However,
timely submission of the required regulatory fee must accompany
requests for

[[Page 46334]]

waivers or reductions. This will avoid any late payment penalty if the
request is denied. The fee will be refunded if the request is granted.
In exceptional and compelling instances (e.g. where payment of the
regulatory fee along with the waiver or reduction request could result
in reduction of service to a community or other financial hardship to
the regulatee), the Commission will defer payment in response to a
request filed with the appropriate supporting documentation.
---------------------------------------------------------------------------

\336\ 47 CFR 1.1166.
---------------------------------------------------------------------------

V. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered

119. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its approach, which may
include the following four alternatives, among others: (1) The
establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities;
(3) the use of performance, rather than design, standards; and (4) an
exemption from coverage of the rule, or any part thereof, for small
entities.\337\
---------------------------------------------------------------------------

\337\ 5 U.S.C. 603.
---------------------------------------------------------------------------

120. In the FY 2012 Regulatory Fee Notice of Proposed Rulemaking,
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. For example, the Commission has considered creating bills
for all fee categories so that payments that are received will
liquidate more quickly, thereby reducing errors in processing and
improving efficiency. The Commission has also considered ways to notify
small entities electronically regarding regulatory fee updates. We
received no comments specifically in response to the IRFA.
121. Several categories of licensees and regulatees are exempt from
payment of regulatory fees, such as government entities, tribal
nations, tax exempt (non-profit) entities, amateur radio operator
licensees, and entities whose total sum owed in regulatory fees is less
than $10. In addition, the Commission's waiver procedures also provide
regulatees, including small entity regulatees, relief in exceptional
circumstances such as financial hardship. We note that small entities
in particular should be assisted by the Commission's electronic filing
and payment system (``Fee Filer''), which pre-loads payment data to
minimize the time spent by entities searching for payment information.
The Commission's Fee Filer system also permits entities to make fee
payment in a variety of ways, even on the due date of regulatory fees.

VI. Report to Congress

122. The Commission will send a copy of this Report and Order,
including this FRFA, in a report to be sent to Congress and the
Government Accountability Office pursuant to the Congressional Review
Act.\338\ In addition, the Commission will send a copy of this Report
and Order, including the FRFA, to the Chief Counsel for Advocacy of the
Small Business Administration. A copy of this Report and Order and FRFA
(or summaries thereof) will also be published in the Federal
Register.\339\
---------------------------------------------------------------------------

\338\ See 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is
contained in Title II, section 251, of the CWAAA; see Public Law
104-121, Title II, section 251, 110 Stat. 868.
\339\ See 5 U.S.C. 604(b).
---------------------------------------------------------------------------

VII. Ordering Clauses

123. Accordingly, it is ordered that, pursuant to sections 4(i) and
(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47
U.S.C. 154(i), 154(j), 159, and 303(r), this Report and Order is hereby
adopted.
124. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Report and Order, including the Final Regulatory
Flexibility Analysis in Table F, to the Chief Counsel for Advocacy of
the U.S. Small Business Administration.

List of Subjects in 47 CFR Part 1

Practice and procedures.

Federal Communications Commission.
Sheryl D. Todd,
Deputy Secretary.

Rule Changes

For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j),
155, 157, 225, 303(r), 309.

0
2. Section 1.1152 is revised to read as follows:

Sec. 1.1152 Schedule of annual regulatory fees and filing locations
for wireless radio services.

------------------------------------------------------------------------
Exclusive use services (per
license) Fee amount \1\ Address
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz
and 220 MHz Local, Base
Station & SMRS) (47 CFR part
90):
(a) New, Renew/Mod (FCC 601 $35.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(b) New, Renew/Mod 35.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
(c) Renewal Only (FCC 601 & 35.00 FCC, P.O. Box 979097,
159). St. Louis, MO 63197-
9000.
(d) Renewal Only 35.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
220 MHz Nationwide:
(a) New, Renew/Mod (FCC 601 35.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(b) New, Renew/Mod 35.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
(c) Renewal Only (FCC 601 & 35.00 FCC, P.O. Box 979097,
159). St. Louis, MO 63197-
9000.
(d) Renewal Only 35.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
2. Microwave (47 CFR Pt. 101)
(Private):
(a) New, Renew/Mod (FCC 601 20.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(b) New, Renew/Mod 20.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
(c) Renewal Only (FCC 601 & 20.00 FCC, P.O. Box 979097,
159). St. Louis, MO 63197-
9000.
(d) Renewal Only 20.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
3. 218-219 MHz Service:
(a) New, Renew/Mod (FCC 601 70.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(b) New, Renew/Mod 70.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.

[[Page 46335]]

(c) Renewal Only (FCC 601 & 70.00 FCC, P.O. Box 979097,
159). St. Louis, MO 63197-
9000.
(d) Renewal Only 70.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
4. Shared Use Services:
Land Mobile (Frequencies Below
470 MHz--except 220 MHz):
(a) New, Renew/Mod (FCC 601 15.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(b) New, Renew/Mod 15.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
(c) Renewal Only (FCC 601 & 15.00 FCC, P.O. Box 979097,
159). St. Louis, MO 63197-
9000.
(d) Renewal Only 15.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
General Mobile Radio Service:
(a) New, Renew/Mod (FCC 605 5.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(b) New, Renew/Mod 5.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
605 & 159). 9000.
(c) Renewal Only (FCC 605 & 5.00 FCC, P.O. Box 979097,
159). St. Louis, MO 63197-
9000.
(d) Renewal Only 5.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
605 & 159). 9000.
Rural Radio (Part 22):
(a) New, Additional 15.00 FCC, P.O. Box 979097,
Facility, Major Renew/Mod St. Louis, MO 63197-
(Electronic Filing) (FCC 9000.
601 & 159).
(b) Renewal, Minor Renew/ 15.00 FCC, P.O. Box 979097,
Mod (Electronic Filing) St. Louis, MO 63197-
(FCC 601 & 159). 9000.
Marine Coast:
(a) New Renewal/Mod (FCC 50.00 FCC, P.O. Box 979097,
601 & 159). St. Louis, MO 63197-
9000.
(b) New, Renewal/Mod 50.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
(c) Renewal Only (FCC 601 & 50.00 FCC, P.O. Box 979097,
159). St. Louis, MO 63197-
9000.
(d) Renewal Only 50.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
Aviation Ground:
(a) New, Renewal/Mod (FCC 15.00 FCC, P.O. Box 979097,
601 & 159). St. Louis, MO 63197-
9000.
(b) New, Renewal/Mod 15.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
(c) Renewal Only (FCC 601 & 15.00 FCC, P.O. Box 979097,
159). St. Louis, MO 63197-
9000.
(9) Renewal Only 15.00 FCC, P.O. Box 979097,
(Electronic Only) (FCC 601 St. Louis, MO 63197-
& 159). 9000.
Marine Ship:
(a) New, Renewal/Mod (FCC 10.00 FCC, P.O. Box 979097,
605 & 159). St. Louis, MO 63197-
9000.
(b) New, Renewal/Mod 10.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
605 & 159). 9000.
(c) Renewal Only (FCC 605 & 10.00 FCC, P.O. Box 979097,
159). St. Louis, MO 63197-
9000.
(d) Renewal Only 10.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
605 & 159). 9000.
Aviation Aircraft:
(a) New, Renew/Mod (FCC 605 10.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(b) New, Renew/Mod 10.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
605 & 159). 9000.
(c) Renewal Only (FCC 605 & 10.00 FCC, P.O. Box 979097,
159). St. Louis, MO 63197-
9000.
(d) Renewal Only 10.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
605 & 159). 9000.
5. Amateur Vanity Call Signs:
(a) Initial or Renew (FCC 1.50 FCC, P.O. Box 979097,
605 & 159). St. Louis, MO 63197-
9000.
(b) Initial or Renew 1.50 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
605 & 159). 9000.
6. CMRS Cellular/Mobile \2\ .17 FCC, P.O. Box 979097,
Services (per unit) (FCC 159). St. Louis, MO 63197-
9000.
7. CMRS Messaging Services (per \3\ .08 FCC, P.O. Box 979097,
unit) (FCC 159). St. Louis, MO 63197-
9000.
8. Broadband Radio Service 475.00 FCC, P.O. Box 979097,
(formerly MMDS and MDS). St. Louis, MO 63197-
9000.
9. Local Multipoint 475.00 FCC, P.O. Box 979097,
Distribution Service. St. Louis, MO 63197-
9000.
------------------------------------------------------------------------
\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
section 1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with
section 1.1157(b) of this chapter.

0
3. Section 1.1153 is revised to read as follows:

Sec. 1.1153 Schedule of annual regulatory fees and filing locations
for mass media services.

------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
Radio [AM and FM] (47 CFR part
73):
1. AM Class A:
< = 25,000 population...... $725 FCC, Radio, P.O. Box
25,001-75,000 population... 1,475 979084, St. Louis, MO
75,001-150,000 population.. 2,200 63197-9000.
150,001-500,000 population. 3,300
500,001-1,200,000 4,775
population. 7,350
1,200,001-3,000,000 8,825
population.
>3,000,000 population......
2. AM Class B:

[[Page 46336]]

< = 25,000 population...... 600 FCC, Radio, P.O. Box
25,001-75,000 population... 1,225 979084, St. Louis, MO
75,001-150,000 population.. 1,525 63197-9000.
150,001-500,000 population. 2,600
500,001-1,200,000 3,975
population. 6,100
1,200,001-3,000,000 7,325
population.
>3,000,000 population......
3. AM Class C:
< = 25,000 population...... 550 FCC, Radio, P.O. Box
25,001-75,000 population... 850 979084, St. Louis, MO
75,001-150,000 population.. 1,125 63197-9000.
150,001-500,000 population. 1,675
500,001-1,200,000 2,800
population. 4,200
1,200,001-3,000,000 5,325
population.
>3,000,000 population......
4. AM Class D:
< = 25,000 population...... 625 FCC, Radio, P.O. Box
25,001-75,000 population... 950 979084, St. Louis, MO
75,001-150,000 population.. 1,600 63197-9000.
150,001-500,000 population. 1,900
500,001-1,200,000 3,175
population. 5,075
1,200,001-3,000,000 6,350
population.
>3,000,000 population......
5. AM Construction Permit...... 550 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
6. FM Classes A, B1 and C3:
< = 25,000 population...... 700 FCC, Radio, P.O. Box
25,001-75,000 population... 1,425 979084, St. Louis, MO
75,001-150,000 population.. 1,950 63197-9000.
150,001-500,000 population. 3,025
500,001-1,200,000 4,800
population. 7,800
1,200,001-3,000,000 9,950
population.
>3,000,000 population......
7. FM Classes B, C, C0, C1 and
C2:
< = 25,000 population...... 875 FCC, Radio, P.O. Box
25,001-75,000 population... 1,550 979084, St. Louis, MO
75,001-150,000 population.. 2,875 63197-9000.
150,001-500,000 population. 3,750
500,001-1,200,000 5,525
population. 8,850
1,200,001-3,000,000 11,500
population.
>3,000,000 population......
8. FM Construction Permits..... 700 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
TV (47 CFR, part 73) VHF
Commercial:
1. Markets 1 thru 10....... 80,075 FCC, Radio, P.O. Box
979084, St. Louis, MO
63197-9000.
2. Markets 11 thru 25...... 73,475
3. Markets 26 thru 50...... 39,800
4. Markets 51 thru 100..... 20,925
5. Remaining Markets....... 5,825
6. Construction Permits.... 5,825
UHF Commercial:
1. Markets 1 thru 10....... 35,350 FCC, UHF Commercial,
P.O. Box 979084, St.
Louis, MO 63197-9000.
2. Markets 11 thru 25...... 32,625
3. Markets 26 thru 50...... 21,925
4. Markets 51 thru 100..... 12,750
5. Remaining Markets....... 3,425
6. Construction Permits.... 3,425
Satellite UHF/VHF Commercial:
1. All Markets............. 1,425 FCC Satellite TV, P.O.
Box 979084, St. Louis,
MO 63197-9000.
2. Construction Permits.... 895
Low Power TV, Class A TV, TV/FM 385 FCC, Low Power, P.O.
Translator, & TV/FM Booster Box 979084, St. Louis,
(47 CFR part 74). MO 63197-9000.
Broadcast Auxiliary............ 10 FCC, Auxiliary, P.O.
Box 979084, St. Louis,
MO 63197-9000.
------------------------------------------------------------------------

0
4. Section 1.1154 is revised to read as follows:

Sec. 1.1154 Schedule of annual regulatory charges and filing
locations for common carrier services.

------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
Radio Facilities:

[[Page 46337]]

1. Microwave (Domestic $20.00 FCC, P.O. Box 97097,
Public Fixed) (Electronic St. Louis, MO 63197-
Filing) (FCC Form 601 & 9000.
159).
Carriers:
1. Interstate Telephone .00375 FCC, Carriers, P.O. Box
Service Providers (per 979084, St. Louis, MO
interstate and 63197-9000.
international end-user
revenues (see FCC Form 499-
A)).
------------------------------------------------------------------------

0
5. Section 1.1155 is revised to read as follows:

Sec. 1.1155 Schedule of regulatory fees and filing locations for
cable television services.

------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
1. Cable Television Relay $475 FCC, Cable, P.O. Box
Service. 979084, St. Louis, MO
63197-9000.
2. Cable TV System (per .95
subscriber).
------------------------------------------------------------------------

0
6. Section 1.1156 is revised to read as follows:

Sec. 1.1156 Schedule of regulatory fees and filing locations for
international services.

(a) The following schedule applies for the listed services:

------------------------------------------------------------------------
Fee category Fee amount Address
------------------------------------------------------------------------
Space Stations (Geostationary $132,875 FCC, International,
Orbit). P.O. Box 979084, St.
Louis, MO 63197-9000.
Space Stations (Non- 143,150 FCC, International,
Geostationary Orbit). P.O. Box 979084, St.
Louis, MO 63197-9000.
Earth Stations: Transmit/ 275 FCC, International,
Receive & Transmit only (per P.O. Box 979084, St.
authorization or registration). Louis, MO 63197-9000.
------------------------------------------------------------------------

(b)(1) International Terrestrial and Satellite. Regulatory fees for
International Bearer Circuits are to be paid by facilities-based common
carriers that have active (used or leased) international bearer
circuits as of December 31 of the prior year in any terrestrial or
satellite transmission facility for the provision of service to an end
user or resale carrier, which includes active circuits to themselves or
to their affiliates. In addition, non-common carrier satellite
operators must pay a fee for each circuit sold or leased to any
customer, including themselves or their affiliates, other than an
international common carrier authorized by the Commission to provide
U.S. international common carrier services. ``Active circuits'' for
these purposes include backup and redundant circuits. In addition,
whether circuits are used specifically for voice or data is not
relevant in determining that they are active circuits.
(2) The fee amount, per active 64 KB circuit or equivalent will be
determined for each fiscal year. Payment, if mailed, shall be sent to:
FCC, International, P.O. Box 979084, St. Louis, MO 63197-9000.

------------------------------------------------------------------------
International Terrestrial and
Satellite (capacity as of Fee amount Address
December 31, 2011)
------------------------------------------------------------------------
Terrestrial Common Carrier $0.26 per 64 KB FCC, International,
Satellite Common Carrier Circuit. P.O. Box 979084, St.
Satellite Non-Common Carrier. Louis, MO 63197-
9000.
------------------------------------------------------------------------

(c) Submarine cable. Regulatory fees for submarine cable systems
will be paid annually, per cable landing license, for all submarine
cable systems operating as of December 31 of the prior year. The fee
amount will be determined by the Commission for each fiscal year.
Payment, if mailed, shall be sent to: FCC, International, P.O. Box
979084, St. Louis, MO 63197-9000.

------------------------------------------------------------------------
Submarine cable systems
(capacity as of Dec. 31, Fee amount Address
2011)
------------------------------------------------------------------------
<2.5 Gbps.................... $13,300 FCC, International, P.O.
Box 979084, St. Louis,
MO 63197-9000,
2.5 Gbps or greater, but less 26,600 FCC, International, P.O.
than 5 Gbps. Box 979084, St. Louis,
MO 63197-9000.
5 Gbps or greater, but less 53,200 FCC, International, P.O.
than 10 Gbps. Box 979084, St. Louis,
MO 63197-9000.
10 Gbps or greater, but less 106,375 FCC, International, P.O.
than 20 Gbps. Box 979084, St. Louis,
MO 63197-9000.
20 Gbps or greater........... 212,750 FCC, International, P.O.
Box 979084, St. Louis,
MO 63197-9000.
------------------------------------------------------------------------

[[Page 46338]]

[FR Doc. 2012-18661 Filed 8-2-12; 8:45 am]
BILLING CODE 6712-01-P

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