Assessment and Collection of Regulatory Fees for Fiscal Year 2013, 52433-52457 [2013-20516]
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
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Paperwork Reduction Act
This direct final rule does not contain
any information collection
requirements, and does not require a
submission to OIRA under the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.).
National Environmental Policy Act
This rule does not constitute a major
Federal action significantly affecting the
quality of the human environment. We
are not required to provide a detailed
statement under the National
Environmental Policy Act of 1969
(NEPA) because this rule qualifies for
categorical exclusion under 43 CFR
46.210(i) and the DOI Departmental
Manual, part 516, section 15.4.D: ‘‘(i)
Policies, directives, regulations, and
guidelines: That are of an
administrative, financial, legal,
technical, or procedural nature.’’ We
have also determined that this rule is
not involved in any of the extraordinary
circumstances listed in 43 CFR 46.215
that would require further analysis
under NEPA. The procedural changes
resulting from these amendments have
no consequences with respect to the
physical environment. This rule will not
alter in any material way natural
resource exploration, production, or
transportation.
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This direct final rule is not a
significant energy action under the
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List of Subjects in 30 CFR Part 1218
Continental shelf, Electronic funds
transfers, Geothermal energy, Indians—
lands, Mineral royalties, Oil and gas
exploration, Public lands—mineral
resources, Reporting and recordkeeping
requirements, Service of official
correspondence.
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Dated: August 15, 2013.
Rhea Suh,
Assistant Secretary, Policy, Management and
Budget.
Authority and Issuance
For the reasons discussed in the
preamble, under the authority provided
by the Reorganization Plan No. 3 of
1950 (64 Stat. 1262) and Secretarial
Order No. 3306, ONRR amends part
1218 of title 30 CFR, chapter XII,
subchapter A, as follows:
PART 1218—COLLECTION OF
ROYALTIES, RENTALS, BONUSES,
AND OTHER MONIES DUE THE
FEDERAL GOVERNMENT
1. The authority citation for part 1218
continues to read as follows:
■
Authority: 5 U.S.C. 301 et seq., 25 U.S.C.
396 et seq., 396a et seq., 2101 et seq.; 30
U.S.C. 181 et seq., 351 et seq., 1001 et seq.,
1701 et seq.; 31 U.S.C. 3335; 43 U.S.C. 1301
et seq., 1331 et seq., and 1801 et seq.
52433
updating its Form ONRR–4444 as
required under paragraph (b) of this
section;
(4) Delivery was expressly refused; or
(5) The document was unclaimed and
the attempt to deliver is substantiated
by either:
(i) The U.S. Postal Service;
(ii) A private mailing service, as
described in this section;
(iii) The person who attempted to
make delivery using some other method
of service; or
(iv) A receipt or other documentation
that ONRR attempted electronic service.
[FR Doc. 2013–20634 Filed 8–22–13; 8:45 am]
BILLING CODE 4310–T2–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 1
[MD Docket No. 13–140; MD Docket No. 12–
201; MD Docket No. 08–65; FCC 13–110]
■
2. Amend § 1218.540 to revise
paragraphs (a) and (d) to read as follows:
Assessment and Collection of
Regulatory Fees for Fiscal Year 2013
§ 1218.540 How does ONRR serve official
correspondence?
AGENCY:
*
*
*
*
*
(a) Method of service. ONRR will
serve all official correspondence to the
addressee of record by one of the
following methods:
(1) U.S. Postal Service mail;
(2) Personal delivery made pursuant
to the law of the State in which the
service is effected;
(3) Private mailing service (e.g.,
United Parcel Service, or Federal
Express), with signature and date upon
delivery, acknowledging the addressee
of record’s receipt of the official
correspondence document; or
(4) Any electronic method of delivery
that keeps information secure and
provides for a receipt of delivery or, if
there is no receipt, the date of delivery
otherwise documented.
*
*
*
*
*
(d) Constructive service. If we cannot
make delivery to the addressee of record
after making a reasonable effort, we
deem official correspondence as
constructively served 7 days after the
date that we mail or electronically
transmit the document. This provision
covers situations such as those where no
delivery occurs because:
(1) The addressee of record has moved
without filing a forwarding address or
updating its Form ONRR–4444 as
required under paragraph (b) of this
section;
(2) The forwarding order has expired;
(3) The addressee of record has
changed its email address without
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Federal Communications
Commission.
ACTION: Final rule.
In this document 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
2013. 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 August 23, 2013.
Payment of regulatory fees is due
September 20, 2013.
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 13–140, MD
Docket No. 12–201; MD Docket No. 08–
65; FCC 13–110, adopted on August 8,
2013 and released on August 12, 2013.
SUMMARY:
I. Procedural Matters
A. Final Paperwork Reduction Act of
1995 Analysis
1. This Report and Order does not
contain any new or modified
information collection requirements
subject to the Paperwork Reduction Act
of 1995 (PRA), Public Law 104–13. In
addition, therefore, it does not contain
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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, see 5 U.S.C 801(a)(1)(A).1
C. Final Regulatory Flexibility Analysis
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.
II. Introduction
3. This Report and Order concludes
the rulemaking proceeding initiated to
collect $339,844,000 in regulatory fees
for Fiscal Year (FY) 2013, pursuant to
section 9 of the Communications Act of
1934, as amended (the Act or
Communications Act) 3 and the FY 2013
Further Continuing Appropriations
Act.4 These regulatory fees are due in
September 2013.
4. In addition to proposing the FY
2013 regulatory fees, the FY 2013
NPRM 5 (78 FR 34612, June 10, 2013)
requested comment (see Table 1 below)
on a number of proposals to revise the
regulatory fee program to more
accurately reflect the regulatory
activities of current Commission full
time employees (FTEs).6
TABLE 1—LIST OF COMMENTERS
Commenter
Abbreviation
Initial Comments
American Cable Association ...........................................................................................................................................
AT&T Services, Inc. ........................................................................................................................................................
Competitive Carriers Association ...................................................................................................................................
Critical Messaging Association .......................................................................................................................................
DIRECTV, LLC ...............................................................................................................................................................
CTIA—The Wireless Association® .................................................................................................................................
EchoStar Satellite Operating Company and Hughes Network Systems, LLC and DISH Network LLC .......................
Fireweed Communications LLC and Jeremy Lansman .................................................................................................
International Carrier Coalition .........................................................................................................................................
Intelsat License LLC .......................................................................................................................................................
Independent Telephone & Telecommunications Alliance ..............................................................................................
Minority Media and Telecommunications Council ..........................................................................................................
National Association of Broadcasters .............................................................................................................................
North American Submarine Cable Association ..............................................................................................................
SES Americom, Inc., Inmarsat, Inc., and Telesat Canada ............................................................................................
Satellite Industry Association ..........................................................................................................................................
Sarkes Tarzian, Inc. and Sky Television, LLC ...............................................................................................................
Telesat Canada ..............................................................................................................................................................
Telstra Incorporated and Australia-Japan Cable (Guam) Limited .................................................................................
United States Telecom Association ................................................................................................................................
Martin D. Wade ...............................................................................................................................................................
ACA.
AT&T.
CCA.
CMA.
DIRECTV.
CTIA.
EchoStar and DISH.
Fireweed.
ICC.
Intelsat.
ITTA.
MMTC.
NAB.
NASCA.
SES.
SIA.
Sarkes Tarzian and Sky
Television.
Telesat.
Telstra.
USTA.
Martin D. Wade.
Reply Comments
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American Cable Association ...........................................................................................................................................
Arkansas Broadcasters Association and Christian Broadcasting System, LTD ............................................................
Clearwire Corporation .....................................................................................................................................................
CTIA—The Wireless Association® .................................................................................................................................
DIRECTV, LLC ...............................................................................................................................................................
EchoStar Satellite Operating Company and Hughes Network Systems, LLC and DISH Network LLC .......................
Google Fiber Inc. ............................................................................................................................................................
International Carrier Coalition .........................................................................................................................................
P. Randall Knowles ........................................................................................................................................................
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’’).
3 Procedures for Assessment and Collection of
Regulatory Fees; Assessment and Collection of
Regulatory Fees for Fiscal Year 2013, Notice of
Proposed Rulemaking and Further Notice of
Proposed Rulemaking in MD Docket Nos. 12–201,
13–140, and 08–05, 28 FCC Rcd 7790 (2013) (FY
2013 NPRM). Section 9 regulatory fees are
mandated by Congress and collected to recover the
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regulatory costs associated with the Commission’s
enforcement, policy and rulemaking, user
information, and international activities. 47 U.S.C.
159(a).
4 In FY 2013, the Consolidated and Further
Continuing Appropriations Act, Public Law 113–6
(2013) at Division F authorizes the Commission to
collect offsetting regulatory fees at the level
provided to the Commission’s FY 2012
appropriation of $339,844,000. See Financial
Services and General Government Appropriations
Act, 2012, Division C of Public Law 112–74, 125
Stat. 108–9 (2011). The sequester effectuated by the
Budget Control Act of 2011, Public Law 112–15,
101, 125 Stat. 241 (2011) reduced the Commission’s
budget for salary and expenses to $322,747,807. See
Budget Control Act of 2011, Public Law 112–15,
101, 125 Stat. 241 (2011) (amending 251 of the
Balanced Budget and Emergency Deficit Control Act
of 1985, Public Law 99–177, 99 Stat. 1037 (2005).
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ACA.
ABA.
Clearwire.
CTIA.
DIRECTV.
EchoStar and DISH.
Google.
ICC.
Knowles.
However, the Budget Control Act does not alter the
congressional directive set out in the Further
Continuing Appropriations Act to collect
$339,844,000 in regulatory fees for FY 2013.
5 Table 1 contains a list of commenters and their
abbreviated names. We have used the same
abbreviations in referring to those commenters
where we discuss previous comments filed by the
same parties. Where previous comments are cited
we have added the date of the filing to clarify that
the comment was filed to an earlier notice of
proposed rulemaking.
6 One FTE, a ‘‘Full Time Equivalent’’ or ‘‘Full
Time Employee,’’ is a unit of measure equal to the
work performed annually by a full time person
(working a 40 hour workweek for a full year)
assigned to the particular job, and subject to agency
personnel staffing limitations established by the
U.S. Office of Management and Budget.
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TABLE 1—LIST OF COMMENTERS—Continued
Commenter
Abbreviation
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Bennett Z. Kobb ..............................................................................................................................................................
National Cable & Telecommunications Association .......................................................................................................
Satellite Industry Association ..........................................................................................................................................
SES Americom, Inc., Inmarsat, Inc., and Telesat Canada ............................................................................................
Verizon and Verizon Wireless ........................................................................................................................................
5. In this Report and Order we look
to current data to determine the number
of FTEs working on regulation and
oversight of Interstate
Telecommunications Service Providers
(ITSPs) 7 and other fee categories and
revise the calculation of direct FTEs in
the International Bureau. We also adopt
a 7.5 percent limit to any increase in
regulatory fee assessments to industry
segments resulting from such
reallocation of FTEs based on current
data.8 We will require Digital Low
Power, Class A, and TV Translators/
Boosters licensees simulcasting in both
an analog or digital mode to pay only a
single regulatory fee for the analog
facility and its corresponding digital
component. We conclude that these
measures, which will take effect in FY
2013, will better align regulatory fees
with regulatory work performed without
imposing undue economic hardship on
certain regulatees.
6. This Report and Order also adopts
several changes that will take effect in
FY 2014. Among these, UHF and VHF
television stations will be consolidated
into one regulatory fee category. We will
assess regulatory fees on Internet
Protocol TV (IPTV) licensees and we
will create a new fee category that will
include both cable television and IPTV.
Beginning in FY 2014, we will also
require that all regulatory fee payments
be made electronically and we will no
longer mail out initial regulatory fee
assessments to CMRS licensees. Finally,
beginning in FY 2014, unpaid regulatory
fees will be transferred for collection to
the U.S. Department of the Treasury at
the end of the payment period rather
than 180 days thereafter.
7. The FTE reallocations and the cap
on fee increases we adopt today are
interim measures that constitute the first
step in comprehensively examining and
reforming our regulatory fee program so
that the fees paid by all licensees will
more accurately reflect the current cost
of regulating them. Various other issues
relevant to revising our regulatory fee
7 ITSPs are interexchange carriers (IXCs),
incumbent local exchange carriers (LECs), toll
resellers, and other IXC service providers regulated
by the Wireline Competition Bureau.
8 The updated FTE data are current as of Sept. 30,
2012.
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program were also raised in either the
FY 2013 NPRM or in comments
submitted in response to it. Because we
require further information to best
determine what action to take on these
complex issues, we will consolidate
them for consideration in a Second
Further Notice of Proposed Rulemaking
that we will issue shortly. We recognize
that these are complex issues and that
resolving them will be difficult.
Nevertheless, we intend to conclusively
readjust regulatory fees within three
years.
III. Background
8. Each year the Commission derives
the fees that Congress requires it to
collect by determining the full-time
equivalent number of employees
performing the regulatory activities
specified in section 9(a), ‘‘adjusted to
take into account factors that are
reasonably related to the benefits
provided to the payer of the fee by the
Commission’s activities. . . .’’ 9
Regulatory fees must also cover the
costs the Commission incurs in
regulating entities that are statutorily
exempt from paying regulatory fees,10
entities whose regulatory fees are
waived,11 and entities that provide
nonregulated services.12 To calculate
regulatory fees, the Commission
allocates the total amount to be
collected among the various regulatory
fee categories. This allocation is based
on the number of FTEs assigned to work
in each regulatory fee category. FTEs are
categorized as ‘‘direct’’ if they are
performing regulatory activities in one
of the ‘‘core’’ bureaus, i.e., the Wireless
9 47 U.S.C. 159(b)(1)(A). When section 9 was
adopted, the total FTEs were to be calculated based
on the number of FTEs in the Private Radio Bureau,
Mass Media Bureau, and Common Carrier Bureau.
(The names of these bureaus were subsequently
changed.) Satellites and submarine cable were
regulated through the Common Carrier Bureau
before the International Bureau was created.
10 Assessment and Collection of Regulatory Fees
for Fiscal Year 2004, Report and Order, 19 FCC Rcd
11662, 11666, para. 11 (2004) (FY 2004 Report and
Order). For example, governmental and nonprofit
entities are exempt from regulatory fees under
section 9(h) of the Act. 47 U.S.C. 159(h); 47 CFR
1.1162.
11 47 CFR 1.1166.
12 E.g., broadband services, non-U.S.-licensed
space stations.
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Kobb.
NCTA.
SIA.
SES.
Verizon.
Telecommunications, Media, Wireline
Competition, and International Bureaus.
All other FTEs are considered
‘‘indirect.’’ 13 The total FTEs for each fee
category is determined by counting the
number of direct FTEs regulating
licensees in that fee category, plus a
proportional allocation of indirect FTEs.
Finally, each regulatee within a fee
category pays its proportionate share
based on an objective measure, e.g.,
revenues, subscribers, or licenses.14
9. We began our regulatory fee reform
analysis in the FY 2008 Further Notice
of Proposed Rulemaking.15 In that
proceeding, we discussed the need to
revise and improve our regulatory fee
process to better reflect industry,
regulatory, and Commission
organizational changes.16 We sought
comment on several issues, e.g.,
reviewing FTE allocations,17 adding
wireless providers to the ITSP
category,18 adding a category for IPTV,19
13 The indirect FTEs are the employees from the
following bureaus and offices: Enforcement Bureau,
Consumer and Governmental Affairs Bureau, Public
Safety and Homeland Security Bureau, Chairman
and Commissioners’ offices, Office of Managing
Director, Office of General Counsel, Office of the
Inspector General, Office of Communications
Business Opportunities, Office of Engineering and
Technology, Office of Legislative Affairs, Office of
Strategic Planning and Policy Analysis, Office of
Workplace Diversity, Office of Media Relations, and
Office of Administrative Law Judges, totaling 967
FTEs.
14 For a fuller description of this process, see
Assessment and Collection of Regulatory Fees,
Notice of Proposed Rulemaking, 27 FCC Rcd 8458,
8461–62, paras. 8–11 (2012) (FY 2012 NPRM). The
current numbers of direct FTEs are as follows:
International Bureau, 119; Media Bureau, 171;
Wireline Competition Bureau, 160; and Wireless
Telecommunications Bureau, 98. FTEs involved in
section 309 auctions, 194 FTEs, are not included in
this analysis because auctions activities are funded
separately.
15 See Assessment and Collection of Regulatory
Fees for Fiscal Year 2008, Report and Order and
Further Notice of Proposed Rulemaking, 24 FCC
Rcd 6388 (2008) (FY 2008 FNPRM).
16 FY 2008 FNPRM, 24 FCC Rcd at 6402, para. 30.
17 FY 2008 FNPRM, 24 FCC Rcd at 6405, para. 41.
USTA proposed updating the FTE calculations.
USTA Comments (9/25/08) at 2–4. ITTA advocated
an annual update of FTE data. ITTA Comments (9/
25/08) at 7–9.
18 FY 2008 FNPRM, 24 FCC Rcd at 6404, para. 40.
ITTA advocated combining the wireless and ITSP
categories. ITTA Comments (9/25/08) at 7–9.
19 FY 2008 FNPRM, 24 FCC Rcd at 6406–07,
paras. 48–49.
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and adopting a per-subscriber fee for
direct broadcast satellite (DBS).20
Lacking a sufficient record, we did not
take any further action on general
industry-wide regulatory fee reform at
that time; although we took a significant
step in regulatory fee reform in the
subsequent Submarine Cable Order
wherein we adopted a new submarine
cable bearer circuit methodology for
assessing regulatory fees on a cable
landing license basis.21
10. In 2012, a report on the
Commission’s regulatory fee program
issued by the Government
Accountability Office provided support
for a fundamental reevaluation of how
to align regulatory fees more closely
with regulatory costs.22 In the FY 2012
NPRM,23 we acknowledged that the FTE
allocations were outdated; that revising
the allocations based on FTEs, without
other adjustments, would drastically
increase the regulatory fees for
International Bureau regulatees; and we
suggested that not all International
Bureau FTEs should be considered
direct FTEs. Comments filed to the FY
2012 NPRM were similar to those filed
by those commenters in this
proceeding.24
20 FY 2008 FNPRM, 24 FCC Rcd at 6407, para. 50.
NCTA recommended adopting a per-subscriber
based regulatory fee for all multichannel video
programming distributors (MVPDs). NCTA
Comments (9/25/08) at 2–4.
21 This methodology allocates international bearer
circuit costs among service providers without
distinguishing between common carriers and noncommon carriers, by assessing a flat per cable
landing license fee for all submarine cable systems,
with higher fees for larger submarine cable systems
and lower fees for smaller systems. Assessment and
Collection of Regulatory Fees for Fiscal Year 2008,
Second Report and Order, 24 FCC Rcd 4208, 4213,
para. 11 (2009) (Submarine Cable Order).
22 See GAO, Federal Communications
Commission, ‘‘Regulatory Fee Process Needs to be
Updated,’’ Aug. 2012, GAO–12–686 (GAO Report).
23 FY 2012 NPRM, 27 FCC Rcd 8458.
24 For example, some commenters argued, in both
proceedings, that the Commission should update its
FTEs in each core bureau (AT&T Comments (9/17/
12) at 3–4, CTIA Reply Comments (10/23/12) at 2–
4, Frontier Communications Reply Comments (10/
23/12) at 2–6, NCTA Reply Comments (10/23/12) at
3–6, USTA Comments (9/17/12) at 2–7, Verizon
Comments (9/17/12) at 2–4, ITTA Ex Parte (2/11/
13) at 1–2); that DBS providers should pay
regulatory fees to cover Media Bureau activities
(ACA Reply Comments (10/23/12) at 4–12); that
DBS providers should not pay regulatory fees to
cover Media Bureau activities (DIRECTV Ex Parte
(11/9/12) at 1–18); and that satellite and submarine
cable operators should not be required to pay
regulatory fees based on the total number of FTEs
in the International Bureau but that the fees should
instead be lower (America Movil Comments (9/17/
12) at 2–6, Globalstar Reply Comments (10/17/12)
at 1–2, Global VSAT Forum Reply Comments (10/
23/12) at 4–7, Hughes Network Systems Ex Parte (8/
1/12) at 1, Intelsat Reply Comments (10/23/12) at
2–10, (ICC Comments (9/17/12) at 5–17, NASCA
Comments (9/17/12) at 4–30, SES Ex Parte (3/8/13)
at 1–2, SIA Comments (9/17/12) at 12–15, Sirius
XM Radio Inc. Reply Comments (10/23/12) at 2–5,
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11. In the FY 2013 NPRM, we
tentatively concluded that our
methodology of assigning direct and
indirect FTEs should be revised to use
current FTE data and that we should
reexamine how the direct and indirect
costs of our current regulatory activities
are allocated among various categories
of Commission licensees.25 Because any
change in the allocation of the
regulatory fee amount for one category
of fee payors necessarily affects the fees
paid by payors in all other fee
categories, we also proposed that such
revisions should take into account the
impact on all regulatees. We proposed
that the International Bureau should no
longer be entirely classified as a ‘‘core
bureau.’’ 26 We sought comment on
specific proposals to revise the
allocation of direct and indirect FTEs as
well as on more general policy and
procedural proposals to assure that
regulatory fees are equitable,
administrable, and sustainable.27
IV. Discussion
A. Using Current FTE Data
12. As discussed in the FY 2013
NPRM, the current allocations of direct
and indirect FTEs are taken from FTE
data compiled in FY 1998 and may no
longer accurately reflect the time that
Commission employees devote to these
activities.28 For example, using 1998
FTE data results in ITSPs paying 47
percent of the total annual regulatory fee
collection, while the Wireline
Competition Bureau employs 29.2
percent of the Commission’s direct
FTEs. To address this anomaly, in the
FY 2013 NPRM we proposed to use
current FY 2012 FTE data.29 Several
commenters, e.g., ITTA, AT&T, CTIA,
and USTA, generally supported this
proposal.30 NAB and other commenters
suggest that we defer using this data
until we complete an examination of the
effects of implementing it.31 We find
Telstra Comments (9/17/12) at 3). To the extent that
the FY 2012 and FY 2013 NPRMs raised the same
issues for comment, we have considered herein the
comments filed in response to both NPRMs.
25 FY 2013 NPRM, 28 FCC Rcd at 7797, para. 16.
26 FY 2013 NPRM, 28 FCC Rcd at 7799, para. 19.
27 FY 2013 NPRM, 28 FCC Rcd at 7798–7807,
paras. 17–40.
28 FY 2013 NPRM, 28 FCC Rcd at 7794–95, para.
9.
29 FY 2013 NPRM, 28 FCC Rcd at 7798, para. 17.
30 See, e.g., ITTA Comments at 3–7; CTIA
Comments at 10; USTA Comments at 2–4; AT&T
Comments at 1–2.
31 NAB Comments at 6 (requesting that ‘‘the
Commission temporarily defer the implementation
of the proposals set forth in the Notice to allow time
for additional analysis.’’). See also ACA Comments
at 12 (‘‘it would be prudent and fair for the
Commission to do what it can to maintain the
regulatory fee status quo until decisions are made
on implementing the pending reforms affecting the
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that it is consistent with section 9 of the
Act to better align, to the extent feasible,
regulatory fees with the current costs of
Commission oversight and regulation
and that the critical issue, noted by NAB
and other commenters, is how to
equitably resolve the issues of fairness
and administrability the use of the new
data will bring about.
13. We next consider an allocation
methodology for direct and indirect
FTEs to better align regulatory fees with
the level of current regulation and we
make the allocation more transparent.32
Using FY 2012 FTE data,33 without
other significant changes in our
methodology, would reduce the
percentage of regulatory fees allocated
to Wireline Competition Bureau
regulatees from 47 percent to 29.2
percent and increase the percentage of
fees allocated to International Bureau
regulatees from 6.3 percent to 22
percent.34 Therefore, substituting
current FTE data for FY 1998 FTE data,
without other adjustments, would
subject international service providers
to significant fee increases.35
14. We find no persuasive argument
for perpetuating the use of 14 year-old
FTE data as the basis for regulatory fees
in FY 2013, and we therefore adopt our
proposal to use current FY 2012 FTE
data to calculate FY 2013 regulatory
fees. Instead, the critical issue, noted by
NAB and other commenters, is whether
and to what extent we should adjust the
new fees that result from using the
current FTE data to assure that our goals
of fairness, sustainability, and
administrability are met.
B. Adjustments to Revised Fees
15. Reallocation of International
Bureau FTEs. It is not surprising that
changes in the scope and focus of
Commission regulation since FY 1998
produce substantial shifts in the
allocation of regulatory fees when
current FTE data is used. In the FY 2013
NPRM we analyzed these in detail.36
The largest shifts would occur in the
fees paid by International Bureau and
Wireline Competition Bureau licensees:
Fees paid by the former would triple,
and fees paid by the latter would
fees paid by cable operators.’’); ABA Reply
Comments at 3 (urging the Commission to maintain
the current allocations for FY 2013).
32 The GAO noted the lack of transparency of the
regulatory fee process and was particularly
concerned with the regulatory fee allocations for the
International Bureau and the Wireline Competition
Bureau. See GAO Report at p. 23.
33 The FTEs used herein are determined as of
Sept. 30, 2012.
34 FY 2012 NPRM, 27 FCC Rcd at 8467, para. 25.
35 Id.
36 FY 2013 NPRM, 28 FCC Rcd at 7795–98, paras.
11–17.
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decrease by about 40 percent. The fees
paid by wireless and media service
licensees would also change, but to a
lesser extent.37
16. The first issue we face is how the
Commission should address these
fluctuations in setting regulatory fees for
FY 2013. One way would be to take a
fresh look at how direct and indirect
FTEs are allocated to determine whether
these allocations accurately reflect the
regulatory activities performed by FTEs
in the core bureaus. As we have
previously noted, this analysis is
complicated by the convergence of
digitally-based services, which can have
the practical effect of causing the work
of FTEs in one bureau to tangentially
benefit licensees in another bureau. In
one singular case, however, the work of
a bureau’s FTEs primarily benefits
licensees regulated by other bureaus. As
we discussed at length in the FY 2012
and FY 2013 NPRMs, the International
Bureau is exceptional compared to the
other licensing bureaus in that the work
of many of its FTEs predominantly
benefits other bureaus’ licensees rather
than its own.38 We incorporate that
analysis by reference herein. Based on
the facts and analysis we presented, we
adopt our proposal, with one slight
modification. Specifically, as proposed
in the FY 2013 NPRM, we reallocate the
FTEs in the International Bureau’s
Strategic Analysis and Negotiation
Division (SAND), as well as all but 27
direct FTEs in the Policy and Satellite
Divisions as indirect FTEs. In addition,
we allocate one FTE from the Office of
the Bureau Chief as direct.39 As
commenters suggest, we find that, based
on further examination of the work done
in the Office of the Bureau Chief, it is
not appropriate to treat the entire office
as indirect.40 We therefore now find a
more appropriate number representing
the direct FTEs actually engaged in the
regulation and oversight of International
Bureau licensees is 28.41
17. Not all commenters agreed with
these proposals, although commenters
did agree that we should not assign all
37 FY
2012 NPRM, 27 FCC Rcd 8458, 8467, para.
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25.
38 FY 2012 NPRM, supra at paras. 26—27; FY
2013 NPRM, 28 FCC Rcd at 7799–7803, paras. 19–
28.
39 Most commenters agree with our proposal. See,
e.g., ICC Comments at 2–3 & Reply Comments at 3–
4 (supports FY 2013 NPRM proposal for
International Bureau); Intelsat Comments at 2–3
(same); AT&T Comments at 2 (same); Telstra
Comments at 2 (same); SES Comments at 2 (same);
SIA Comments at 4–9 & Reply Comments at 2–5
(same); EchoStar and DISH Comments at 6 & Reply
Comments at 2–4 (same); NASCA Comments at 3–
8 (same).
40 See CTIA Comments at 10–11.
41 For this reason, the International Bureau would
remain a core bureau, in part.
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of the International Bureau FTEs as
direct FTEs. USTA suggests that we
follow the proposal in the FY 2012
NPRM and remove only one division,
SAND, from the ‘‘core’’ International
Bureau.42 Several commenters agree
that many of the FTEs in the
International Bureau should not be
considered direct, but observe that
similar situations occur in other bureaus
and urge us to take a closer look at all
bureaus.43
18. NAB and ABA recommend that
we should not limit our analysis to the
International Bureau, but should
consider all such cross-cutting work
throughout the Commission before
revising our FTE reallocations.44
Commenters have provided specific
suggestions for other reallocations, e.g.,
assigning Enforcement Bureau and
Consumer & Governmental Affairs FTEs
as direct costs to the Wireline
Competition Bureau, Wireless
Telecommunications Bureau, and Media
Bureau 45; assigning some Media Bureau
FTEs to the Wireless
Telecommunications Bureau 46;
reallocating regulatory fees among
International Bureau regulatees in order
to lower the submarine cable system
fee 47; as well as assessing Media Bureau
costs to DBS providers.48
19. We recognize that there is
substantial convergence in the industry
42 USTA
Comments at 6–7.
e.g., ITTA Comments at 5–6 (Wireline
Competition Bureau’s work on Universal Service
Fund issues benefits regulatees in the wireless,
cable, and satellite industries); CCA Comments at
6 (the Commission ‘‘should review the functions
and activities of all Bureaus rather than just the
International Bureau.’’); Comments of EchoStar and
DISH at 7 & Reply Comments at 4 (Commission
should ‘‘apply the same type of enhanced scrutiny
. . . to bureaus and offices currently categorized as
consisting of ‘indirect’ FTEs’ ’’).
44 NAB Comments at 4–5 (‘‘The Commission
should either undertake a complete accounting or
the actual functions of FTEs in the core bureaus,
and allocate regulatory fees accordingly, or consider
retaining the existing process of allocating fees
based on the percentages of FTEs in the core
bureaus.’’); ABA Reply Comments at 2–3.
45 SIA Comments at 10–11 & Reply Comments at
5–6.
46 NAB Comments at 4 (some Media Bureau FTEs
work on spectrum and wireless-related issues).
47 NASCA Comments at 8–9; Telstra Comments at
2–3; ICC Reply Comments at 2.
48 We sought comment on this issue and intend
to address it in a subsequent proceeding. See FY
2013 NPRM, 28 FCC Rcd at 6407, para. 50. See, e.g.,
AT&T Comments at 4–5 (recommending a single
MVPD fee category that would include all MVPDs);
ACA Comments at 13–18 (same) & Reply Comments
at 1–6 (‘‘this much-needed regulatory reform will
ensure regulatory parity between cable operators
and DBS providers’’); NCTA Reply Comments at 2–
5 (‘‘All MVPDs are subject to some level of
regulation administered by the Media Bureau and
they all benefit from the Bureau’s regulation of
other entities.’’); DIRECTV Comments at 1–20
(opposing including DBS in such a category);
EchoStar and DISH Comments at 18–20 & Reply
Comments at 4–6 (same).
43 See,
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Fmt 4700
Sfmt 4700
52437
and organizational change in the
Commission that may support
additional FTE reallocations after
further analysis. The high percentage of
indirect FTEs is indicative of the fact
that many Commission activities and
costs are not limited to a particular fee
category and instead benefit the
Commission as a whole. Even without
the changes we adopt today, the number
of non-core bureau FTEs are almost
double the number of core bureau (nonauction) FTEs, demonstrating that our
common costs far outweigh costs
assigned to a particular core bureau.
20. CTIA contends that ‘‘selective
reallocation’’ would be ‘‘arbitrary and
capricious’’ 49 upending the regulatory
fee structure in contravention of section
9 of the Act.50 CTIA further maintains
that the Commission’s proposal reflects
a system of cost allocation that does not
depend on the cost of Commission
regulation but rather on a ‘‘fair share’’
rationale that is incompatible with the
Act.51 This would cause ‘‘a tremendous
amount of complexity and uncertainty’’
and, if applied broadly, would
‘‘threaten[ ] the administrability of the
regulatory fee program.’’ 52 We disagree
with these arguments. Section 9(a) and
(b)(1)(A) in relevant part directs the
Commission to establish regulatory fees
based on the number of FTEs engaged
in regulatory activities within the
named bureaus ‘‘and other offices of the
Commission.’’ Thus, the plain wording
of the statute requires the Commission
to calculate fees based on what FTEs are
doing, not on where they are located.
Nowhere does the statute explicitly or
implicitly limit the Commission’s
ability to reassign FTEs, and the costs
they represent, among the various
bureaus. Furthermore, because the
‘‘benefits provided’’ to fee payors by
International Bureau FTEs inure mainly
to licensees in other bureaus, the
49 CTIA Comments at 12 (‘‘It would be arbitrary
and capricious for the Commission to implement
any reallocation of FTEs in the WCB without
providing parties sufficient time and information to
adequately consider the proposal.’’)
50 CTIA Comments at 7. CTIA states that ‘‘the
Commission’s proposal to subject wireless
regulatees to the ITSP regulatory fee category does
not satisfy the necessary conditions set forth in
Section 9.’’ Id.
51 CTIA Comments at 3. CTIA contends that the
wireless industry’s overall contribution to the
Commission’s budget includes spectrum auction
proceeds. Id.
52 CTIA’s concern is that the FY 2013 NPRM does
not ‘‘provide a governing standard and, if applied
broadly, would upend the regulatory fee structure.’’
CTIA Comments at 11. The only specific example
given by CTIA to support this argument is that the
FY 2013 NPRM ‘‘fails to explain why all FTEs in
the IB front office would be treated to a different
standard than front office personnel in other core
bureaus, none of whom are considered indirect
FTEs.’’ Id.
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
reallocation of these FTEs to the other
bureaus is consistent with section
9(b)(1)(A) and is not arbitrary and
capricious. Limiting reassignments to
the FTEs in SAND as USTA proposes
would also not be appropriate because
further analysis has shown that the
work of some FTEs in the International
Bureau’s Policy and Satellite Divisions
also predominantly benefits the
licensees of other bureaus.
21. Nor can we agree with NAB that
we must toll all FTE reassignments until
we have reexamined the allocation of
FTEs throughout the Commission. As
EchoStar and DISH observe, the fact that
we have not yet examined all bureaus
on a division or branch level should not
prevent us from adopting our
proposal.53 As we have noted, the extent
to which the International Bureau’s
FTEs are engaged in activities that
primarily benefit licensees regulated by
other bureaus is sui generis, and no
commenter in this proceeding has
submitted any facts that contradict this
finding. Moreover, our analysis shows
that the digitally-driven convergence of
formerly separate services will make a
similar examination of possible FTE
reallocations among the other licensing
bureaus a much more difficult and
lengthy task. It would be inconsistent
with section 9 to delay reallocating the
International Bureau FTEs, where the
reallocation is clearly warranted, while
we engage in painstaking examinations
of less clear and more factually complex
situations in the other bureaus. Finally,
because the International Bureau’s
situation is exceptional, we do not
perceive how, as CTIA would argue,
that the proposed reallocation can
constitute a ‘‘slippery slope.’’ 54 For
these reasons we conclude it is
reasonable and consistent with section 9
of the Act to readjust the assignment of
FTEs in the bureau where the record
demonstrates the clearest case for
reassignment.
22. At the same time, however, we
recognize that a reexamination of how
FTEs are allocated throughout the
Commission is an indispensable part of
comprehensively revising the
Commission’s regulatory fee program.
For this reason as stated in paragraph 5
above, we will issue a Second Further
Notice of Proposed Rulemaking in the
near future to examine these, and other
related issues.
23. Limiting Fee Increases. As noted
in para. 13 above, using current FTE
figures causes shifts in the allocation of
regulatory fee collection among the
53 EchoStar
and DISH Reply Comments at 4.
Reply Comments at 5, quoting USTA
Comments at 7.
54 CTIA
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16:22 Aug 22, 2013
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Bureaus and, consequently, the fees
their licensees will pay. Because we are
required by statute to set regulatory fees
that will recover the entire amount of
our appropriation, any reduction in the
proportion of all regulatory fees paid by
licensees in one fee category will
necessarily result in an increase in
regulatory fees paid by licensees in
others. For the same reason, limiting fee
increases for licensees in some fee
categories will necessarily limit fee
decreases that licensees in other fee
categories would otherwise receive.
With these considerations in mind, and
to avoid sudden and large changes in
the amount of fees paid by various
classes of regulatees, we proposed in the
FY 2013 NPRM to cap increases in FY
2013 fees to no more than 7.5 percent.55
24. USTA strongly opposes this
limitation on fee rate increases or any
other transition to fully normalized fees,
contending that such proposals try to
insure fairness to other fee payors while
ignoring the fact that ITSPs have been
paying a disproportionate share of
regulatory fees for a decade.56 ITTA
argues that any cap should only be
applied in FY 2013.57 AT&T contends
that a cap on increases would be
unnecessary if the Commission fairly
accounted for FTE distribution among
all the core bureaus.58 The International
Carrier Coalition agreed with our
finding that limiting fee increases would
have the unavoidable effect of also
limiting fee decreases, and stated that
for that reason ‘‘the proposed 7.5% cap
on increases/decreases of regulatory fees
should be an interim measure only.’’ 59
25. We disagree with the commenters
objecting to the imposition of the 7.5%
55 FY 2013 NPRM, 28 FCC Rcd at 7803–04, paras.
30–31.
56 USTA Comments at 4–5. Several commenters
agree that a limitation on fee increases is needed to
prevent economic hardship. See, e.g., CCA
Comments at 6 (‘‘any fee increases resulting from
the use of updated data should be capped to limit
the severity of the impact on payors’’); Echostar and
DISH Comments at 13–14 (‘‘a reasonable approach
would be for the Commission to establish a
guideline providing for a multi-year phase in of any
fee increase where the change would exceed the
rate of inflation’’); NASCA Comments at 10 (a 7.5%
‘‘cap on fee increases is consistent with the
requirements of Section 9’’); ACA Comments at 11
(supporting the proposed 7.5% cap); SIA Reply
Comments at 9–10 (a cap on fee increases is
needed); ICC Reply Comments at 4 (the proposed
cap should be an interim measure only); ABA Reply
Comments at 2 (even with the 7.5% cap, the fee
increase will cause ‘‘irreparable injury’’ to small
broadcasters). See also NAB Comments at 6 (‘‘We
also urge the Commission to be cognizant of the
burden that regulatory fees impose on some
Commission licensees, particularly the smallest
broadcast stations, which may have a few as two or
three permanent staff.’’).
57 ITTA Comments at 2.
58 AT&T Comments at 2.
59 ICC Comments at 7. Also see note 69 below.
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Frm 00050
Fmt 4700
Sfmt 4700
cap on fee increases. As an initial matter
we note that the imposition of a cap on
fee increases is not unprecedented. In
1997 we imposed a 25 percent cap to
avoid the prospect of ‘‘fee shock’’
resulting from large and unpredictable
fluctuations in fees.60 Today, a different
set of circumstances supports the
imposition of a more modest, interim
cap. The regulatory fees we adopt today
reflect only the first of a series of
changes that we will consider in the
comprehensive revision of our
regulatory fee program. As we noted in
the FY 2013 NPRM, and in para. 5
above, there are unresolved regulatory
fee reform initiatives on which we will
seek comment and which could be
adopted and implemented in setting
regulatory fees in FY 2014.61 Capping
fee increases at 7.5% is a conservative
interim approach to assure that any fee
increases resulting from use of the new
FTE data will be reasonable as we
transition to a revised regulatory fee
program in which regulatory fees will
more closely reflect the current costs
and benefits of Commission regulation.
26. USTA and other commenters have
pointed out that ITSPs will be most
affected by any limitation on fee
increases. USTA opposes the 7.5% cap
on fee increases, contending that ITSPs
have been paying ‘‘an inordinate share
of regulatory fees, paying 47 percent of
the total fees while only 29.2 percent of
the direct FTEs are assigned to the
Wireline Competition Bureau.’’ 62
27. We agree with USTA’s contention
that ITSP fees should be reduced to
more accurately reflect the regulatory
costs that the industry currently
generates, and thus the interim fees we
adopt today give ITSPs a significant
reduction in their FY 2013 fees.
However, we cannot ‘‘flash cut’’ to
immediate, unadjusted use of the FY
2012 FTE data without engendering
significant and unexpected fee increases
for other categories of fee payors. As
noted above, the cap we impose on fee
increases for some licensees will
unavoidably limit the fee reductions
other licensees, like ITSPs, would
otherwise enjoy; simply put, capping fee
increases reduces the amount of money
available to effectuate all of the
60 See Assessment and Collection of Regulatory
Fees for Fiscal Year 1997, Report and Order, 12 FCC
Rcd 17161, 17176, para. 37 (1997). The fee shock
the Commission sought to avoid was caused by the
use of employee time sheet entries to calculate
direct and indirect FTEs, a methodology that was
ultimately abandoned as unworkable.
61 FY 2013 NPRM, 28 FCC Rcd at 7803, para. 30.
62 USTA Comments at 4–5. AT&T contends that
a cap on increases should be unnecessary if the
Commission would fairly account for FTE
distribution among the core bureaus. AT&T
Comments at 2.
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reductions in this fiscal year. We are
satisfied, however, that as an interim
measure the limitations on fee increases
are reasonable, and the resulting fee
changes are likewise reasonable.
Moreover, as this is an interim measure,
we commit to revisit these issues and
make whatever further fee reductions
are warranted in the course of adopting
further revisions to our regulatory fee
program.63
28. Limiting Fee Decreases. We are
confronted with somewhat different
issues in evaluating whether to cap the
amount of the fee decrease that any
class of fee payors might otherwise
receive as a result of our use of current
FTE data. The revised FY 2013 fee
calculations appearing at Attachment B
of the FY 2013 NPRM reflect both a 10%
cap on decreases, as well as a 7.5% cap
on increases.64 Although the caption to
Attachment B clearly stated that the fees
resulted from the imposition of a 7.5%
cap, it did not state that the fees also
reflected a 10% cap on decreases. The
text of the FY 2013 NPRM did not
reference this fact, however, nor did it
request comment on the issue of
capping fee decreases. Although we
requested comment on the general
issues of limiting fee increases and
adopting possible measures to address
the impacts of such limits, no party
specifically addressed the issue of an
offsetting limit to decreases in
comments.65 Under these
circumstances, we cannot find that
interested parties were afforded an
52439
adequate opportunity to comment on
the issue of capping fee decreases.
Although this situation would normally
be addressed by requesting comments
on this issue, here we would not be able
to receive and analyze further comments
in time to publish and collect fees by
the end of FY 2013. Further, as stated
above, we find the FY 2013 fee changes
resulting from imposition of a 7.5% cap
on fee increases to be reasonable. For
these reasons we find it necessary to
adopt revised FY 2013 fee calculations
that reflect only the application of a
7.5% cap on fee increases and no cap on
fee decreases. The revised fees are set
forth in Table 2 and Table 3 below. The
sources of the units for the fees appear
in Table 4.
TABLE 2—REVISED FTE (AS OF 9/30/12) ALLOCATIONS,5 FEE RATE INCREASES CAPPED AT 7.5%; CALCULATION OF FY
2013 REVENUE REQUIREMENTS AND PRO-RATA FEES
[The first ten regulatory fee categories in the table 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.]
emcdonald on DSK67QTVN1PROD with RULES
Fee category
FY 2013
payment units
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 A 4 ...................................................................
AM Class B 4 ...................................................................
AM Class C 4 ...................................................................
AM Class D 4 ...................................................................
FM Classes A, B1 & C3 4 ...............................................
FM Classes B, C, C0, C1 & C2 4 ....................................
AM Construction Permits ................................................
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 Permits 1 ............................................
Broadcast Auxiliaries .......................................................
LPTV/Translators/Boosters/Class A TV ..........................
CARS Stations ................................................................
Cable TV Systems ..........................................................
Interstate Telecommunication Service Providers ...........
CMRS Mobile Services (Cellular/Public Mobile) .............
CMRS Messag. Services ................................................
1,400
15,000
13,200
5
6,550
7,900
2,900
285
900
14,300
65
1,510
890
1,500
3,075
3,140
51
190
125
3
23
23
39
61
137
1
112
109
140
239
247
4
25,400
3,725
325
60,000,000
$39,000,000,000
326,000,000
3,000,000
63 ITTA proposes a 14% limitation, for one year.
ITTA Ex Parte Communication (July 11, 2013) at 2.
For the reasons discussed above, we disagree with
ITTA’s proposal.
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Jkt 229001
Years
10
10
10
10
10
5
10
10
10
10
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
FY 2012
revenue
estimate
490,000
2,250,000
2,640,000
3,500
655,000
192,500
290,000
142,500
135,000
214,500
250,100
3,125,875
1,107,975
3,698,400
7,764,750
9,513,000
35,750
84,000
178,125
3,580
1,761,650
1,836,875
1,512,400
1,255,500
798,025
11,650
3,853,150
3,458,250
2,959,875
2,868,750
845,975
23,975
248,000
1,436,820
178,125
59,090,000
148,875,000
53,210,000
272,000
Pro-Rated
FY 2013
revenue
requirement
605,350
2,897,033
2,853,794
4,324
951,265
345,914
432,393
172,957
172,957
259,436
294,808
3,664,040
1,305,578
4,337,887
8,970,581
11,034,236
42,115
421,154
210,577
4,212
2,366,150
2,454,013
2,034,276
1,757,149
1,020,393
6,250
4,248,631
3,781,729
3,232,818
3,099,301
916,915
14,700
336,923
1,684,616
210,634
69,719,942
118,979,384
63,105,583
240,000
64 28 FCC Rcd 7790, 7823, Attachment B,
‘‘Revised FTE (as of 9/30/12) Allocations, Fee Rate
Increases Capped at 7.5%, Prior to Rounding.’’
65 As noted at para. 22 supra, ICC in its comments
referred to ‘‘the proposed 7.5% cap on fee
increases/decreases,’’ but in context ICC was simply
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Frm 00051
Fmt 4700
Sfmt 4700
Uncapped
FY 2013
regulatory
fee
43
19
22
86
15
9
15
61
19
1.81
4,536
2,427
1,467
2,892
2,917
3,514
826
2,217
1,685
1,404
102,876
106,696
52,161
28,806
7,448
6,250
37,934
34,695
23,092
12,968
3,712
3,675
13
452
648
1.162
0.00305
0.194
0.0800
Rounded &
capped
FY 2013
regulatory
fee
40
15
20
75
10
5
10
55
15
1.61
4,400
2,275
1,350
2,575
2,725
3,375
590
750
1,525
960
86,075
78,975
42,775
22,475
6,250
6,250
38,000
35,050
23,550
13,700
3,675
3,675
10
410
510
1.02
0.00347
0.18
0.080
Expected
FY 2013
revenue
560,000
2,250,000
2,640,000
3,750
655,000
197,500
290,000
156,750
135,000
230,230
286,000
3,435,250
1,201,500
3,862,500
8,379,375
10,597,500
30,090
142,500
190,625
2,880
1,979,725
1,816,425
1,668,225
1,370,975
856,250
6,250
4,256,000
3,820,450
3,297,000
3,274,300
907,725
14,700
254,000
1,527,250
165,750
61,200,000
135,330,000
58,680,000
240,000
addressing the fact, discussed above, that limiting
fee increases will necessarily limit fee decreases as
well. ICC did not discuss the specific issue of
whether fee decreases should be capped and, if so,
at what level.
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
TABLE 2—REVISED FTE (AS OF 9/30/12) ALLOCATIONS,5 FEE RATE INCREASES CAPPED AT 7.5%; CALCULATION OF FY
2013 REVENUE REQUIREMENTS AND PRO-RATA FEES—Continued
[The first ten regulatory fee categories in the table 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 2013
payment units
Fee category
BRS 2 ...............................................................................
LMDS ..............................................................................
Per 64 kbps Int’l Bearer Circuits Terrestrial (Common)
& Satellite (Common & Non-Common) .......................
Submarine Cable Providers (see chart in Appendix C) 3
Earth Stations ..................................................................
Space Stations (Geostationary) ......................................
Space Stations (Non-Geostationary) ..............................
Total Estimated Revenue to be Collected ......................
Total Revenue Requirement ...........................................
Difference ........................................................................
Years
FY 2012
revenue
estimate
Pro-Rated
FY 2013
revenue
requirement
Uncapped
FY 2013
regulatory
fee
Rounded &
capped
FY 2013
regulatory
fee
Expected
FY 2013
revenue
920
170
1
1
451,250
225,625
693,680
128,180
754
754
510
510
469,200
86,700
3,823,249
39.19
3,400
87
6
............................
............................
............................
1
1
1
1
1
..........
..........
..........
1,157,602
8,150,984
893,750
11,560,125
858,900
340,568,811
339,844,000
724,811
1,066,139
7,504,167
824,068
10,646,958
791,105
339,844,006
339,844,000
6
.279
191,494
242
122,379
131,851
....................
....................
....................
.27
217,675
275
139,100
149,875
....................
....................
....................
1,032,277
8,530,139
935,000
12,101,700
899,250
339,965,741
339,844,000
121,741
1 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. 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 Table 3 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 2013 Regulatory Fee’’ constitute a weighted average media regulatory fee by class of service.
The actual FY 2013 regulatory fees for AM/FM radio stations are listed on a grid located at the end of Table 3.
5 The allocation percentages represent FTE data as of September 30, 2012, and include the proposal to use 28 Direct FTEs (rather than 119 FTEs) for the International Bureau.
TABLE 3—REVISED FTE (AS OF 9/30/12) ALLOCATIONS,1 FEE RATE INCREASES CAPPED AT 7.5%; FY 2013 SCHEDULE
OF REGULATORY FEES
[The first eleven regulatory fee categories in the table 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)
emcdonald on DSK67QTVN1PROD 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:
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 .......................................................................................................................
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20
75
10
55
5
15
15
10
15
1.61
.18
.08
510
510
590
750
86,075
78,975
42,775
22,475
6,250
6,250
38,000
35,050
23,550
13,700
3,675
3,675
1,525
960
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52441
TABLE 3—REVISED FTE (AS OF 9/30/12) ALLOCATIONS,1 FEE RATE INCREASES CAPPED AT 7.5%; FY 2013 SCHEDULE
OF REGULATORY FEES—Continued
[The first eleven regulatory fee categories in the table 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
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 ............................................................................................................................
410
10
510
1.02
.00347
275
139,100
149,875
.27
See Table Below
1 The allocation percentages represent FTE data as of September 30, 2012, and include the proposal to use 28 Direct FTEs (rather than 119
FTEs) for the International Bureau.
FY 2013 RADIO STATION REGULATORY FEES
AM Class
A
Population served
≤25,000 ....................................................................................................
25,001–75,000 .........................................................................................
75,001–150,000 .......................................................................................
150,001–500,000 .....................................................................................
500,001–1,200,000 ..................................................................................
1,200,001–3,000,00 .................................................................................
>3,000,000 ...............................................................................................
AM Class
B
AM Class
C
AM Class
D
$775
1,550
2,325
3,475
5,025
7,750
9,300
$645
1,300
1,625
2,750
4,225
6,500
7,800
$590
900
1,200
1,800
3,000
4,500
5,700
$670
1,000
1,675
2,025
3,375
5,400
6,750
FM
Classes
A, B1 &
C3
$750
1,500
2,050
3,175
5,050
8,250
10,500
FM
Classes
B, C, C0,
C1 & C2
$925
1,625
3,000
3,925
5,775
9,250
12,025
FY 2013 SCHEDULE OF REGULATORY FEES: FEE RATE INCREASES CAPPED AT 7.5%
[International Bearer Circuits—Submarine Cable]
Submarine cable systems (capacity as of
December 31, 2012)
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 ...................................
$13,600
27,200
54,425
108,850
emcdonald on DSK67QTVN1PROD with RULES
In order to calculate individual
service fees for FY 2013, we adjusted FY
2012 payment units for each service to
more accurately reflect expected FY
2013 payment liabilities. We obtained
our updated estimates through a variety
of means. For example, we used
Commission licensee data bases, actual
prior year payment records and industry
and trade association projections when
available. The databases we consulted
include our Universal Licensing System
(‘‘ULS’’), International Bureau Filing
System (‘‘IBFS’’), Consolidated Database
System (‘‘CDBS’’) and Cable Operations
16:22 Aug 22, 2013
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FCC,
FCC,
FCC,
FCC,
217,675
Table 4—Sources of Payment Unit
Estimates for FY 2013
VerDate Mar<15>2010
Address
International,
International,
International,
International,
P.O.
P.O.
P.O.
P.O.
Box
Box
Box
Box
979084,
979084,
979084,
979084,
FCC, International, P.O. Box 979084, St. Louis, MO 63197–9000.
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 2013
estimates with actual FY 2012 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
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St.
St.
St.
St.
Louis,
Louis,
Louis,
Louis,
MO
MO
MO
MO
63197–9000.
63197–9000.
63197–9000.
63197–9000.
payment units cannot yet be estimated
with sufficient accuracy. These include
an unknown number of waivers and/or
exemptions that may occur in FY 2013
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 2013 payment
units are based on FY 2012 actual
payment units, it does not necessarily
mean that our FY 2013 projection is
exactly the same number as in FY 2012.
We have either rounded the FY 2013
number or adjusted it slightly to account
for these variables.
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
Fee category
Sources of payment unit estimates
Land Mobile (All), Microwave, 218–219 MHz,
Marine (Ship & Coast), Aviation (Aircraft &
Ground), GMRS, Amateur Vanity Call Signs,
Domestic Public Fixed.
CMRS Cellular/Mobile Services .........................
CMRS Messaging Services ................................
AM/FM Radio Stations ........................................
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 ................
Based on Wireless Telecommunications Bureau (‘‘WTB’’) projections of new applications and
renewals taking into consideration existing Commission licensee data bases. Aviation (Aircraft) and Marine (Ship) estimates have been adjusted to take into consideration the licensing of portions of these services on a voluntary basis.
Based on WTB projection reports, and FY 12 payment data.
Based on WTB reports, and FY 12 payment data.
Based on CDBS data, adjusted for exemptions, and actual FY 2012 payment units.
Based on CDBS data, adjusted for exemptions, and actual FY 2012 payment units.
Based on CDBS data, adjusted for exemptions, and actual FY 2012 payment units.
Based on CDBS data, adjusted for exemptions, and actual FY 2012 payment units.
Interstate Telecommunication Service Providers
Earth Stations .....................................................
Space Stations (GSOs & NGSOs) .....................
International Bearer Circuits ...............................
Submarine Cable Licenses .................................
29. The most significant shifts
between the recalculated fees we adopt
today and the fees that appear in
Attachment B of the FY 2013 Notice
affect International Bureau licensees.
The reallocation of FTEs from the
International Bureau, combined with a
10% cap on decreases, would have
provided licensees of Earth Stations,
Geostationary Orbit Space Stations,
Non-Geostationary Orbit Satellite
Systems, and Submarine Cable Systems
with reductions of 3.85% to 10.01%
from the fees they paid in FY 2012.66
Removing the 10% cap on decreases
emcdonald on DSK67QTVN1PROD with RULES
66 The specific reductions would have been
10.91% for Earth Stations, 10.01% for Geostationary
Orbit Space Stations, Non-Geostationary Orbit
Satellite Systems, and Submarine Cable Systems,
and 3.85% for International Bearer Circuits.
VerDate Mar<15>2010
16:22 Aug 22, 2013
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Based
Based
Based
Based
on
on
on
on
actual FY 2012 payment units.
WTB reports and actual FY 2012 payment units.
WTB reports and actual FY 2012 payment units.
data from Media Bureau’s COALS database and actual FY 2012 payment units.
Based on publicly available data sources for estimated subscriber counts and actual FY 2011
payment units.
Based on FCC Form 499–Q data for the four quarters of calendar year 2012, the Wireline
Competition Bureau projected the amount of calendar year 2012 revenue that will be reported on 2013 FCC Form 499–A worksheets in April, 2013.
Based on International Bureau (‘‘IB’’) licensing data and actual FY 2012 payment units.
Based on IB data reports and actual FY 2012 payment units.
Based on IB reports and submissions by licensees.
Based on IB license information.
causes the fees these licensees will pay
in FY 2013 to increase between 2.31%
and 4.70% over the fees they paid in FY
2012.67 Although at variance from the
results we had projected, we find that
these modest increases in the fees
international service licensees will pay
this year are unlikely to affect their
ability to continue offering the services
for which the Commission has licensed
67 The specific increases will be Geostationary
Orbit Space Stations, 4.68%, Non-Geostationary
Orbit Satellite Systems, 4.70%, International Bearer
Circuits, 3.85%, and Submarine Cable Systems,
2.31%. Fees for Earth Stations will not increase.
Applying the other adjustments we adopt today
while removing the 10% cap on decreases means
that ITSPs’ FY 2013 fees will be reduced by 7.47%
instead of 4.27%.
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them.68 Moreover, we emphasize again
that the adjustments reflected in all the
fees we adopt today are but an initial
step in the process of comprehensively
reforming the way we assess regulatory
fees, a process that we anticipate will
lead to further significant changes in the
regulatory fees Commission licensees
will pay in FY 2014 and beyond.
30. The new allocations that result
from the International Bureau FTE
reassignments and the imposition of the
7.5 percent cap are as follows:69
68 The Commission’s rules allow any individual
licensee unable to pay its regulatory fees to request
and obtain a waiver, reduction, or deferral of
payment for good cause shown. See 47 CFR 1.1166.
69 The allocations before imposition of a 7.5% cap
on increases are 6.13%, 37.42%, 35.01%, and
21.44% respectively.
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
International Bureau ..............................................................
Media Bureau ........................................................................
Wireline Competition Bureau ................................................
Wireless Telecommunications Bureau .................................
emcdonald on DSK67QTVN1PROD with RULES
C. Changes to the Fee Categories, Using
Revised FTE Data
31. As we discussed above in
paragraph 18, we intend to further
examine other possible FTE
reallocations. We have concluded that
the International Bureau is exceptional
in that most of its activities benefit the
regulatees of other bureaus and offices
instead of its own regulatees, and none
of the commenters have shown that this
is the case to the same extent with
regard to any other core bureau. If
parties can show that other bureaus’
activities directly benefit licensees of
different bureaus as disproportionately
as the International Bureau’s activities
do, or that a non-core bureau’s activities
benefit only certain bureaus or
regulatees, we will consider those
showings in setting regulatory fees in
FY 2014. We will continue to examine
these suggestions as we continue our
regulatory fee reform, as well as our
proposals that we do not reach in this
Report and Order: to combine the ITSP
and wireless categories,70 to use
revenues in calculating all regulatory
fees,71 and to include DBS providers in
a new MVPD category.72 We find
additional time is necessary and
appropriate to examine these proposals
under Section 9 of the Communications
Act and analyze how these proposals
account for changes in the
communications industry and the
Commission’s regulatory processes and
staffing.73
70 ITTA supports this proposal. ITTA Comments
at 3–7. Other commenters, however, do not. See,
e.g., CTIA Comments at 6–8 & Reply Comments at
3; AT&T Comments at 3; CCA Comments at 3–6;
Verizon Reply Comments at 1–2.
71 ITTA supports a revenue-based assessment for
wireline and wireless voice services. See ITTA
Comments at 7–9. Fireweed supports a revenuebased assessment, with a discount for broadcasters.
See Fireweed Comments at 3–6. Several
commenters oppose this proposal. See, e.g., ACA
Comments at 8–9; CTIA Comments at 8 & ex parte
(7/15/13) at 1–2; DIRECTV Comments at 18–19;
EchoStar and DISH Comments at 10–12; NASCA
Comments at 13–14; NCTA Reply Comments at 5–
6; SES Comments at 2; SIA Reply Comments at 8.
72 See, e.g., AT&T Comments at 4–5; ACA
Comments at 13–18 & Reply Comments at 1–6;
NCTA Reply Comments at 2–5. DIRECTV and
EchoStar and DISH oppose this proposal. See
DIRECTV Comments at 1–20; EchoStar and DISH
Comments at 18–20 & Reply Comments at 4–6.
73 See, e.g., NAB Comments at 6 (requesting that
‘‘the Commission temporarily defer the
implementation of the proposals set forth in the
Notice to allow time for additional analysis.’’); ACA
Comments at 12 (‘‘it would be prudent and fair for
the Commission to do what it can to maintain the
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Formerly
Formerly
Formerly
Formerly
6.3% ......................................................................
30.2% ....................................................................
46.7% ....................................................................
16.8% ....................................................................
FY
FY
FY
FY
2013
2013
2013
2013
52443
6.91%.
33.69%.
39.81%.
19.59%.
conversion, it became evident that VHF
channels were less desirable than digital
UHF channels, and thus there may no
1. Combining UHF/VHF Television
longer be a basis in which to assess a
Regulatory Fees Into One Fee Category
higher regulatory fee on VHF channels.
Effective FY 2014
Therefore, in the FY 2013 NPRM we
32. Regulatory fees for full-service
proposed to combine the VHF and UHF
television stations are calculated based
stations in the same market area into
on two, five-tiered market segments for
one fee category beginning in FY 2014
Ultra High Frequency (UHF) and Very
and eliminate the fee disparity between
High Frequency (VHF) television
VHF and UHF stations. For the reasons
stations. After the transition to digital
given in the FY 2013 NPRM, we adopt
television on June 12, 2009, we
our proposal to combine UHF and VHF
proposed that the Commission combine full service television station categories
the VHF and UHF regulatory fee
into one fee category.
categories.74 In response, Fireweed
34. Sarkes Tarzian and Sky Television
argued that we should base the
also request that the Commission
regulatory fee structure on three tiers
implement this proposal in FY 2013.77
and Sky Television, LLC, Spanish
With respect to this request, we note
Broadcasting System, Inc., and Sarkes
that section 9(b)(3) directs the
Tarzian argued that instead of six
Commission to add, delete, or reclassify
separate categories for both VHF and
services in the fee schedule to reflect
UHF we should combine all television
additions, deletions, or changes in the
stations into a single six-tiered category
nature of its services ‘‘as a consequence
based on market size, thus eliminating
of Commission rulemaking proceedings
any distinction between VHF and
or changes in law.’’ 78 Combining UHF
75 In its most recent comments,
UHF.
and VHF full-service television stations
Sarkes Tarzian and Sky Television
into one fee category constitutes a
support our proposal to combine the
reclassification of services in the
VHF and UHF fee categories within the
regulatory fee schedule as defined in
same market area into one fee category
section 9(b)(3) of the Act,79 and
but suggests that the Commission
pursuant to section 9(b)(4)(B) must be
implement this proposal in FY 2013
rather than FY 2014.76 In a recent Notice submitted to Congress at least 90 days
80
of Ex Parte Presentation, filed by Sarkes before it becomes effective. The
Commission will not have sufficient
Tarzian and Sky Television on February
time to implement this change before
15, 2013, these parties argued that
September 30, 2013 and therefore we
because VHF stations are less desirable
will implement this change in FY 2014.
than UHF stations it is unfair to levy
higher fees on them.
2. Including Internet Protocol TV in
33. Historically, analog VHF channels Cable Television Systems Category, for
(channels 1–13) were coveted for their
FY 2014
greater prestige and larger audience, and
35. IPTV is digital television delivered
thus the regulatory fees assessed on
through a high speed Internet
VHF stations were higher than
connection, instead of by the traditional
regulatory fees assessed for UHF
cable method. IPTV service generally is
(channels 14 and above) stations in the
offered bundled with the customer’s
same market area. After the digital
Internet and telephone or VoIP services.
regulatory fee status quo until decisions are made
In the FY 2008 Report and Order we
on implementing the pending reforms affecting the
first sought comment on whether this
fees paid by cable operators.’’); ABA Reply
service should be subject to regulatory
Comments at 3 (urging the Commission to maintain
fees.81 In the FY 2013 NPRM, we
the current allocations for FY 2013).
D. Other Telecommunications
Regulatory Fee Issues
74 See Assessment and Collection of Regulatory
Fees for Fiscal Year 2010, Report and Order, 25 FCC
Rcd 9278, 9285–86, at paras. 18–20 (2010) (FY 2010
Report and Order).
75 See also Notice of Ex Parte Presentation, filed
by Sarkes Tarzian and Sky Television (Feb. 15,
2013) (arguing that VHF stations are less desirable
than UHF stations and it was unfair to have higher
fees for such stations; instead the fee categories
should be combined).
76 See Sarkes Tarzian and Sky Television
Comments at 2–5.
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77 See Sarkes Tarzian and Sky Television
Comments at 2–5.
78 47 U.S.C. 159(b)(3).
79 47 U.S.C. 159(b)(3).
80 47 U.S.C. 159(b)(4)(B).
81 FY 2008 FNPRM, 24 FCC Rcd at 6406–07,
paras. 48–49. We observed that ‘‘[f]rom a customer’s
perspective, there is likely not much difference
between IPTV and other video services, such as
cable service.’’ Id.
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
observed that by assessing regulatory
fees on cable television systems, but not
on IPTV, we may place cable providers
at a competitive disadvantage.82
Commenters addressing this issue agree
that we should assess regulatory fees on
that service.83 IPTV and cable service
providers benefit from Media Bureau
regulation as MVPDs.84 We agree that
IPTV providers should be subject to the
same regulatory fees as cable providers.
36. We intend to revisit the issue of
whether DBS providers should be
included in this category; we are not
including such additional services at
this time.85 Therefore, we adopt the
proposal in the FY 2013 NPRM and
broaden the cable television systems
category to include IPTV in the new
category: ‘‘cable television systems and
Internet Protocol TV service providers.’’
This will continue to be calculated on
a per subscriber basis. In this new
category we assess regulatory fees on
IPTV providers in the same manner as
we assess fees on cable television
providers; we are not stating that IPTV
providers are cable television providers.
As this is a ‘‘permitted amendment,’’ it
will go into effect for FY 2014.86
3. Regulatory Fee Obligations for Digital
Low Power, Class A, and TV
Translators/Booster
37. The digital transition to fullservice television stations was
completed on June 12, 2009, but the
digital transition for Low Power, Class
82 FY
2013 NPRM, 28 FCC Rcd at 7806, para. 37.
e.g., ACA Comments at 2–9 (‘‘The
Commission is correct to assume that IPTV service
providers should pay regulatory fees to support
video-related activities of the Commission’’); see
also ACA Reply Comments at 1–6. But see Google
Reply Comments at 2–3 (IPTV regulatory fees
should be less than what cable operators pay
because the Media Bureau has fewer
responsibilities with regard to IPTV providers than
with cable operators). While we agree that the
services are not identical, and we are not
categorizing IPTV as a cable television service, we
are not persuaded that the relatively small
difference from a regulatory perspective described
by Google would justify a different regulatory fee
methodology and rate.
84 Some IPTV providers consider the service a
‘‘cable service’’ and currently pay the same
regulatory fees as cable providers; others do not.
ACA Comments at 7–8. MVPD, defined in section
76.1000(e) of our rules, is ‘‘an entity engaged in the
business of making available for purchase, by
subscribers or customers, multiple channels of
video programming.’’ 47 CFR 76.1000(e).
85 AT&T Comments at 4–5 (recommending a
single MVPD fee category that would include all
MVPDs); NCTA Reply Comments at 2–5 (proposes
including all MVPDs); ACA Comments at 13–18
(same); DIRECTV Comments at 1–20 & Reply
Comments at 2–10 (opposing including DBS in a
MVPD category); EchoStar and DISH Comments at
18–20 & Reply Comments at 4–6 (same). This
Report and Order does not adopt a MVPD fee
category.
86 47 U.S.C. 159(b)(3).
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83 See,
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A, and TV Translators/Boosters still
remains voluntary with a transition date
of September 1, 2015. In the context of
regulatory fees, we have historically
considered the digital transition only
with respect to regulatory fees
applicable to full-service television
stations, and not to Low Power, Class A,
and TV Translators/Boosters. Because
the digital transition for these services is
still voluntary, some of these facilities
may transition from analog to digital
service more rapidly than others. 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.
Therefore, for regulatory fee purposes,
we will assess a fee for each facility
operating either in an analog or digital
mode. In instances in which a licensee
is simulcasting in both analog and
digital modes, a single regulatory fee
will be assessed for the analog facility
and its corresponding digital
component, but not for both facilities.
As greater numbers of facilities convert
to digital mode, the Commission will
provide revised instructions on how
regulatory fees will be assessed.
4. Commercial Mobile Radio Service
(CMRS) Messaging
38. CMRS Messaging Service, which
replaced the CMRS One-Way Paging fee
category in 1997, includes all
narrowband services.87 Initially, the
Commission froze the regulatory fee for
this fee category at the FY 2002 level to
provide relief to the paging industry by
setting an applicable rate of $0.08 per
subscriber beginning in FY 2003.88 At
that time we noted that CMRS
Messaging units had significantly
declined from 40.8 million in FY 1997
to 19.7 million in FY 2003—a decline of
51.7 percent.89 Commenters argued that
this decline in subscribership was not
just a temporary phenomenon, but a
lasting one. Commenters further argued
that, because the messaging industry is
spectrum-limited, geographically
localized, and very cost sensitive, it is
difficult for this industry to pass on
87 See Assessment and Collection of Regulatory
Fees for Fiscal Year 1997, Report and Order, 12 FCC
Rcd 17161, 17184–85, para. 60 (1997) (FY 1997
Report and Order).
88 Assessment and Collection of Regulatory Fees
for Fiscal Year 2003, Report and Order, 18 FCC Rcd
15985, 15992, para. 22 (2003) (FY 2003 Report and
Order).
89 FY 2003 Report and Order, 18 FCC Rcd at
15992, para. 21. The subscriber base in the paging
industry declined 92 percent from 40.8 million to
3.2 million between FY 1997 and FY 2012,
according to FY 2012 collection data as of Sept. 30,
2012.
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increases in costs to its subscribers.90 In
response to our FY 2013 NPRM, one
commenter supported maintaining the
CMRS Messaging fee rate at $.08 per
subscriber, but urged the Commission to
adopt an even lower fee rate in the
future, suggesting a ratio of 1 to 7
(messaging/paging monthly ARPU to
wireless telephony ARPU) to calculate
the messaging regulatory fee rate.91
39. The Commission has frozen the
CMRS Messaging fee rate since FY 2003.
By doing so, the Commission has
provided the CMRS Messaging industry
some level of regulatory fee stability. As
our earlier discussion on FTE allocation
has indicated, the fee burden of
regulatory fee categories is determined
by FTEs, and not by comparative ARPUs
or other forms of measurement. By
maintaining the CMRS Messaging rate at
$.08 per subscriber for a decade, the
CMRS Messaging industry has in effect
been paying a fee rate of .07 percent
(.0007) of all fees, compared to its
allocated share of .32 percent (.0032).92
As in previous years, the Commission in
FY 2013 will maintain the CMRS
Messaging fee rate at $.08 per
subscriber. The Commission, however,
will continue to examine the impact of
regulatory fees on CMRS Messaging and
similar declining industries.
E. Excess Fees
40. Commenters recommend that the
Commission obtain Congressional
approval to refund excess regulatory
fees or alternatively apply the excess
fees to FY 2014 collections.93 The
Commission’s annual appropriations,
since 2008, have prohibited the use of
any excess fees from current or previous
fees without an appropriation from
Congress. Should Congress decide to
examine this issue or any other issues
regarding regulatory fees, the
Commission is committed to providing
whatever information they request.94
F. Fee Decisions and Waiver Policies
41. The Commission received two
unsolicited comments regarding its fee
decisions and waiver policies. MMTC
urges the Commission ‘‘to waive
application fees for small businesses
and nonprofits and to provide
90 FY 2003 Report and Order, 18 FCC Rcd at
15992, para. 22.
91 See CMA Comments at 1, 3, and 5.
92 If the fee rate were not frozen at $.08 per
subscriber, the actual fee rate for the CMRS
Messaging fee category would have been $.39 per
subscriber, thereby raising $1,170,000 in projected
revenues (.34% of all fees) compared with $240,000
in projected revenues (.07%).
93 See, e.g., USTA Comments at 8–9; Verizon
Reply Comments at 1–2; SIA Reply Comments at
10.
94 See GAO Report at pp. 44–45.
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
regulatory fee relief for certain broadcast
entities.’’ 95 In addition, MMTC explains
that the Commission has the authority
to ‘‘waive, reduce, or defer payment of
a fee in any specific instance of good
cause shown, where such action would
promote the public interest.’’ 96 MMTC
contends that the Commission should
adopt a rebuttable presumption that a
certain class of entities need, and are
eligible, for regulatory fee relief.97
MMTC also urges the Commission to
exercise its statutory authority and grant
a one-year waiver of certain application
fees.98
42. The issues raised by MMTC
relating to application fees are beyond
the scope of this proceeding. We
emphasize that all waivers, including a
reduction and deferral of fees, are
considered on a case-by-case basis
under the statute. These include
instances in which financial hardship is
presented, as well as instances in which
the public interest will be promoted.
The Commission can exercise some
discretion in providing relief on
waivers, but this relief can only be
provided within the confines of the
statutory law that governs that
particular waiver.
43. The Commission also received a
comment requesting the Commission
publish redacted financial data from fee
decisions.99 Fireweed also contends that
the Commission has hidden decisions
from public view.100 The Commission
intends to consider this issue as it
reviews its current policy of publishing
fee decisions. However, the publishing
of fee decisions, including redacted
financial data, must adhere to the
Commission’s privacy rules and
guidelines.
44. Fireweed also contends that we
should not require parties to support a
waiver request with tax returns.101
Fireweed has not, however, suggested
an alternative method to substantiate
financial hardship. Tax returns or
audited financial statements are
generally used by parties before the
Commission to demonstrate financial
hardship.
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G. Administrative Issues
45. In FY 2009, the Commission
implemented several procedural
changes that simplified the payment
and reconciliation processes for FY
2009 regulatory fees. The Commission’s
95 MMTC
Comments at 1.
Comments at 4.
97 MMTC Comments at 4–5.
98 MMTC Comments at 5.
99 Fireweed Comments at 6.
100 Fireweed Comments at 7.
101 Fireweed Comments at 8.
96 MMTC
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current regulatory fee collection
procedures can be found in the Report
and Order on Assessment and
Collection of Regulatory Fees for FY
2012.102 In FY 2013, the Commission
will continue to promote greater use of
technology (and less use of paper) in
improving our regulatory fee
notification and collection process.
These changes and their effective dates
are discussed in more detail below.
Specifically, beginning on October 1,
2013, in FY 2014, we will no longer
accept checks and hardcopy Form 159
remittance advice forms to pay
regulatory fee obligations. In FY 2014,
we will also transfer electronic
invoicing and receivables collection to
the Treasury. Finally, in FY 2014, we
will no longer mail out initial CMRS
assessments, and will instead require
licensees to log into the Commission’s
Web site to view and revise their
subscriber counts.
1. Discontinuation of Mail Outs of
Initial CMRS Assessments, FY 2014
46. In FY 2014, as part of the
Commission’s effort to become more
‘‘paperless,’’ the Commission will no
longer mail out its initial CMRS
assessments but will require licensees to
log into the Commission’s Web site to
view and revise their subscriber counts.
A system currently exists for providers
to revise their CMRS subscriber counts
electronically after the CMRS
assessments are mailed, and it is
possible that this system can be
expanded to include letters that can be
downloaded to serve as the initial
CMRS assessment letter. The
Commission will provide more details
in future announcements as this system
is modified to accommodate this task.
2. Discontinuation of Paper and Check
Transactions Beginning October 1, 2013
(FY 2014)
47. Together with the U.S.
Department of Treasury, the
Commission is taking further steps to
meet the OMB Open Government
Directive.103 A component part of the
Treasury’s current flagship initiative
pursuant to this Directive is moving to
a paperless Treasury, which includes
related activities in both disbursing and
collecting select federal government
102 See
Assessment and Collection of Regulatory
Fees for Fiscal Year 2012, Report and Order, 27 FCC
Rcd 8390, 8395–97, paras. 17–20, 24–26 (2012) (FY
2012 Report and Order).
103 Office of Management and Budget (OMB)
Memorandum M–10–06, Open Government
Directive, Dec. 8, 2009; see also https://
www.whitehouse.gov/the-press-office/2011/06/13/
executive-order-13576-delivering-efficient-effectiveand-accountable-gov.
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payments and receipts.104 Going
paperless is expected to produce cost
savings, reduce errors, and improve
efficiencies across government.
Accordingly, beginning on October 1,
2013, the Commission will no longer
accept checks (including cashier’s
checks) and the accompanying
hardcopy forms (e.g., Form 159’s, Form
159–B’s, Form 159–E’s, Form 159–W’s)
for the payment of regulatory fees. This
new paperless procedure will require
that all payments be made by online
ACH payment, online credit card, or
wire transfer. Any other form of
payment (e.g., checks) will be rejected
and sent back to the payor. So that the
Commission can associate the wire
payment with the correct regulatory fee
information, an accompanying Form
159–E should still be transmitted via fax
for wire transfers. This change will
affect all payments of regulatory fees
made on or after October 1, 2013.105
3. Transfers to Treasury, FY 2014
48. Under section 9 of the Act,
Commission rules, and the debt
collection laws, a licensee’s regulatory
fee is due on the first day of the fiscal
year and payable at a date established
by our annual regulatory fee Report and
Order. The Commission will work with
Treasury to facilitate end-to-end billing
and collections capabilities for our
receivables in the pre-delinquency
stage. Under these revised procedures,
the Commission will begin transferring
appropriate receivables (unpaid
regulatory fees) to Treasury at the end
of the payment period instead of waiting
for a period of 180 days from the date
of delinquency to transfer a delinquent
debt to Treasury for further collection
action.106 Accordingly, we anticipate
that the transfer of FY 2013 debts to
Treasury will occur much sooner than
our current process. Regulatees,
however, will not likely see any
substantial change in the current
procedures of how past due debts are to
be paid. The Commission expects to
modify its guidance and amend its rules
accordingly.
104 See U.S. Department of the Treasury, Open
Government Plan 2.1, Sept. 2012.
105 Payors should note that this change will mean
that to the extent certain entities have to date paid
both regulatory fees and application fees at the
same time via paper check, they will no longer be
able to do so as the regulatory fees payment via
paper check will no longer be accepted.
106 See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR
1.1917.
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
V. Procedural Matters
A. Assessment Notifications
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1. CMRS Cellular and Mobile Services
Assessments
49. For regulatory fee collection in FY
2013, 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’’).107 The letter will
include a listing of the carrier’s
Operating Company Numbers (OCNs)
upon which the assessment is based.108
The letters will not include OCNs with
their respective assigned number
counts, but rather, an aggregate total of
assigned numbers for each carrier.
50. 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.109
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.
51. Because some carriers do not file
the NRUF report, they may not receive
107 See Assessment and Collection of Regulatory
Fees for Fiscal Year 2005 and Assessment and
Collection of Regulatory Fees for Fiscal Year 2004,
MD Docket Nos. 05–59 and 04–73, Report and
Order and Order on Reconsideration, 20 FCC Rcd
12259, 12264, paras. 38–44 (2005).
108 Id.
109 In the supporting documentation, the provider
will need to state a reason for the change, such as
a purchase or sale of a subsidiary, the date of the
transaction, and any other pertinent information
that will help to justify a reason for the change.
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an initial assessment letter. In these
instances, the carriers should compute
their fee payment using the standard
methodology that is currently in place
for CMRS Wireless services (i.e.,
compute their subscriber counts as of
December 31, 2012), 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.
B. Payment of Regulatory Fees
1. Lock Box Bank
52. All lock box payments to the
Commission for FY 2013 will be
processed by U.S. Bank, St. Louis,
Missouri, and payable to the FCC.
During the fee season for collecting FY
2013 regulatory fees, regulatees can pay
their fees by credit card through
Pay.gov,110 by check, money order, or
debit card,111 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
53. The receiving bank for all wire
payments is the Federal Reserve Bank,
New York, New York (TREAS NYC).
When making a wire transfer, regulatees
110 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.
111 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.
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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
54. Regulatees whose total FY 2013
regulatory fee liability, including all
categories of fees for which payment is
due, is less than $10 are exempted from
payment of FY 2013 regulatory fees.
4. Two Additional Fee Categories Will
Be Established as Bills in FY 2013
55. Presently, the Commission
establishes bills for a select group of
regulatory fee categories: ITSPs,
Geostationary (GSO) and NonGeostationary (NGSO) satellite space
station licensees,112 holders of Cable
Television Relay Service (CARS)
licenses, and Earth Station licensees.113
In FY 2009, the Commission stopped
sending hardcopy bills to licensees, and
made them electronically available in
Fee Filer, the Commission’s electronic
filing and payment system. During the
FY 2013 regulatory fee collection
period, the Commission will expand its
number of billing categories to include
BRS/LMDS and Television Stations.
There will be no change in the
procedures of how BRS/LMDS and
television station licensees view and
pay their regulatory fees. The only
noticeable difference will be that a bill
number will be associated with each
record for the BRS/LMDS and television
station fee categories. This bill number
will enable the Commission to
112 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.
113 A bill is considered an account receivable in
the Commission’s accounting system. Bills reflect
the amount owed and have a payment due date of
the last day of the regulatory fee payment window.
Consequently, if a bill is not paid by the due date,
it becomes delinquent and is subject to our debt
collection procedures. See also 47 CFR 1.1161(c),
1.1164(f)(5), and 1.1910.
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determine more quickly those entities
that have not paid their FY 2013
regulatory fees. This initiative is part of
the Commission’s effort to streamline
and expedite the process of regulatory
fee collection and accounting.
5. Standard Fee Calculations and
Payment Dates
56. 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, 2012 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, 2012. In
instances where a permit or license is
transferred or assigned after October 1,
2012, 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, 2012. In instances
where a permit or license is transferred
or assigned after October 1, 2012,
responsibility for payment rests with the
holder of the permit or license as of the
fee due date. Audio bridging service
providers are included in this
category.114
• 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,
2012. The number of subscribers, units,
or telephone numbers on December 31,
2012 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,
2012, 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 3 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
114 Audio bridging services are toll
teleconferencing services.
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‘‘small multi-year wireless’’ licenses
that will be renewed or newly obtained
in FY 2013.
• 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, 2012.115
Regulatory fees also must be paid for
CARS licenses that were granted on or
before October 1, 2012. In instances
where a permit or license is transferred
or assigned after October 1, 2012,
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, 2012. In instances
where a permit or license is transferred
or assigned after October 1, 2012,
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, 2012. In instances where a license is
transferred or assigned after October 1,
2012, responsibility for payment rests
with the holder of the license as of the
fee due date. For regulatory fee
purposes, the allocation in FY 2013 will
remain at 87.6 percent for submarine
cable and 12.4 percent for satellite/
terrestrial facilities.
• International Services: Terrestrial
and Satellite Services: Regulatory fees
for 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, 2012 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
115 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 2012, rather than on a count as of
December 31, 2012.
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52447
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, 2012. Whether
circuits are used 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, 2012, 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 2013 will
remain at 87.6 percent for submarine
cable and 12.4 percent for satellite/
terrestrial facilities.
C. Enforcement
57. 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.116
Failure to pay regulatory fees and/or any
late penalty will subject regulatees to
sanctions, including those set forth in
section 1.1910 of the Commission’s
rules 117 and in the Debt Collection
Improvement Act of 1996 (DCIA).118 We
also assess administrative processing
charges on delinquent debts to recover
additional costs incurred in processing
and handling the related debt pursuant
to the DCIA and section 1.1940(d) of the
Commission’s rules.119 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.
116 47
U.S.C. 159(c).
47 CFR 1.1910.
118 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.
119 47 CFR 1.1940(d).
117 See
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58. 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.120 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).
59. As a final matter, we note that
providing a 30 day period after Federal
Register publication before this Report
and Order becomes effective as required
by 5 U.S.C. 553(d) will not allow
sufficient time for the Commission to
collect the FY 2013 fees before the end
of FY 2013 on September 30, 2013. For
this reason, pursuant to 5 U.S.C.
553(d)(3) the Commission finds there is
good cause to waive the requirements of
Section 553(d), and this Report and
Order will become effective upon
publication in the Federal Register.
Because payments of the regulatory fees
will not actually be due until the middle
of September persons affected by this
Order will still have a reasonable period
in which to prepare to make their
payments and thereby comply with the
rules established herein.
VI. Conclusion
60. In this Report and Order we
reallocate regulatory fees to more
accurately reflect the subject areas
worked on by current Commission FTEs
for FY 2013. We consider this our first
step toward reforming the regulatory fee
process and will continue to refine our
regulatory fee methodology to achieve
equitable results that are consistent with
section 9 of the Act.
Table 5—Factors, Measurements, and
Calculations That Determines Station
Signal Contours and Associated
Population Coverages
AM Stations
61. For stations with nondirectional
daytime antennas, the theoretical
radiation was used at all azimuths. For
stations with directional daytime
antennas, specific information on each
day tower, including field ratio, phase,
spacing, and orientation was retrieved,
as well as the theoretical pattern rootmean-square of the radiation in all
directions in the horizontal plane
(‘‘RMS’’) figure (milliVolt per meter
(mV/m) @ 1 km) for the antenna system.
The standard, or augmented standard if
pertinent, horizontal plane radiation
pattern was calculated using techniques
and methods specified in sections
73.150 and 73.152 of the Commission’s
rules.121 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 R3.122
Using the calculated horizontal
radiation values, and the retrieved soil
conductivity data, the distance to the
principal community (5 mV/m) contour
was predicted for each of the 360
radials. The resulting distance to
principal community contours were
used to form a geographical polygon.
Population counting was accomplished
by determining which 2010 block
centroids were contained in the
polygon. (A block centroid is the center
point of a small area containing
population as computed by the U.S.
Census Bureau.) The sum of the
population figures for all enclosed
blocks represents the total population
for the predicted principal community
coverage area.
FM Stations
62. The greater of the horizontal or
vertical effective radiated power
(‘‘ERP’’) (kW) and respective height
above average terrain (‘‘HAAT’’) (m)
combination was used. Where the
antenna height above mean sea level
(‘‘HAMSL’’) was available, it was used
in lieu of the average HAAT figure to
calculate specific HAAT figures for each
of 360 radials under study. Any
available directional pattern information
was applied as well, to produce a radialspecific ERP figure. The HAAT and ERP
figures were used in conjunction with
the Field Strength (50–50) propagation
curves specified in 47 CFR 73.313 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.123 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.
Table 6—FY 2012 Schedule of
Regulatory Fees
The first eleven regulatory fee
categories in the table 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)
emcdonald on DSK67QTVN1PROD 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 .....................................................................................................................................................
120 See
121 47
47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
CFR 73.150 and 73.152.
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122 See Map of Estimated Effective Ground
Conductivity in the United States, 47 CFR 73.190
Figure R3.
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70
10
50
5
15
15
10
15
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550
Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
52449
Annual regulatory
fee
(U.S. $’s)
Fee category
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) ..........................................................................................
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 ............................................................................................................................
700
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 RADIO STATION REGULATORY FEES
AM Class
A
Population served
< = 25,000 ................................................................................................
25,001–75,000 .........................................................................................
75,001–150,000 .......................................................................................
150,001–500,000 .....................................................................................
500,001–1,200,000 ..................................................................................
1,200,001–3,000,00 .................................................................................
>3,000,000 ...............................................................................................
AM Class
B
AM Class
C
AM Class
D
$725
1,475
2,200
3,300
4,775
7,350
8,825
$600
1,225
1,525
2,600
3,975
6,100
7,325
$550
850
1,125
1,675
2,800
4,200
5,325
FM
Classes
A, B1 &
C3
$625
950
1,600
1,900
3,175
5,075
6,350
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
FY 2012 SCHEDULE OF REGULATORY FEES
[International Bearer Circuits—Submarine Cable]
Submarine cable systems
(capacity as of December 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 ...................................
$13,300
26,600
53,200
106,375
emcdonald on DSK67QTVN1PROD with RULES
1. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA),124 an Initial Regulatory
Flexibility Analysis (IRFA) was
124 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has
been amended by the Small Business Regulatory
Enforcement Fairness Act of 1996 (SBREFA), Public
Law 104–121, Title II, 110 Stat. 847 (1996).
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FCC,
FCC,
FCC,
FCC,
212,750
Final Regulatory Flexibility Analysis
VerDate Mar<15>2010
Address
International,
International,
International,
International,
P.O.
P.O.
P.O.
P.O.
Box
Box
Box
Box
979084,
979084,
979084,
979084,
FCC, International, P.O. Box 979084, St. Louis, MO 63197–9000.
included in the FY 2013 NPRM. The
Commission sought written public
comment on the proposals in the FY
2013 NPRM, including comment on the
IRFA. This Final Regulatory Flexibility
Analysis (FRFA) conforms to the
IRFA.125
125 5
PO 00000
St.
St.
St.
St.
Louis,
Louis,
Louis,
Louis,
MO
MO
MO
MO
A. Need for, and Objectives of, the
Report and Order
2. In this Report and Order, we
conclude the Assessment and Collection
of Regulatory Fees for Fiscal Year (FY)
2013 proceeding to collect $339,844,000
in regulatory fees for FY 2013, pursuant
to Section 9 of the Communications
U.S.C. 604.
Frm 00061
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63197–9000.
63197–9000.
63197–9000.
63197–9000.
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
Act 126 and the FY 2013 Continuing
Appropriations Resolution.127 These
regulatory fees will be due in September
2013. Under section 9 of the
Communications Act, regulatory fees are
mandated by Congress and collected to
recover the regulatory costs associated
with the Commission’s enforcement,
policy and rulemaking, user
information, and international
activities.128 In the FY 2013 NPRM we
sought comment on our annual process
of assessing regulatory fees to cover the
Commission’s costs to offset the
Commission’s FY 2013 appropriation, as
directed by Congress. We also sought
comment in the FY 2013 NPRM on
reforming and revising our regulatory
fee schedule for FY 2013 and beyond to
take into account changes in the
communications industry and changes
in the Commission’s regulatory
processes and staffing in recent years.
3. The FY 2013 NPRM sought
comment on, among other things,
reallocating: (1) Direct FTEs 129
currently allocated to the Interstate
Telecommunications Service Providers
(ITSPs) fee category and other fee
categories to reflect current workloads
devoted to these subject areas; and (2)
FTEs in the International Bureau to
more accurately reflect the
Commission’s regulation and oversight
of the International Bureau regulatees,
because many of the International
Bureau FTEs devote their time on issues
international in nature, but not
necessarily pertaining to the
International Bureau regulatees. The
Report and Order adopts these
proposals, together with a limit on any
increase in assessments to 7.5 percent to
avoid fee shock to industry segments
paying higher regulatory fees as a result
of reallocation. In addition, for FY 2014,
the Report and Order adds Internet
Protocol TV (IPTV) to the cable
television category because by assessing
regulatory fees on cable television
systems but not on IPTV, we may place
126 47
U.S.C. 159(a).
FY 2013, the Consolidated and Further
Continuing Appropriations Act, Public Law 113–6
(2013) at Division F authorizes the Commission to
collect offsetting regulatory fees at the level
provided to the Commission’s FY 2012
appropriation of $339,844.00. See Financial
Services and General Government Appropriations
Act, 2012, Division C of Public Law 112–74, 125
Stat. 108–9 (2011).
128 47 U.S.C. 159(a).
129 One FTE, typically called a ‘‘Full Time
Equivalent,’’ is a unit of measure equal to the work
performed annually by a full time person (working
a 40 hour workweek for a full year) assigned to the
particular job, and subject to agency personnel
staffing limitations established by the U.S. Office of
Management and Budget. Any reference to FTE or
‘‘Full Time Employee’’ used herein refers to such
Full Time Equivalent.
emcdonald on DSK67QTVN1PROD with RULES
127 In
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cable providers at a competitive
disadvantage. The Report and Order
also combines UHF and VHF fee
categories, also for FY 2014, because
after the digital conversion there was no
longer a basis in which to assess a
higher regulatory fee on VHF channels.
4. The Report and Order also clarifies
that licensees of Digital Low Power,
Class A, and TV Translators/Boosters
should pay only one regulatory fee on
their analog or digital station, but not
both. During the transition from analog
to digital, 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. Therefore, for
regulatory fee purposes, the
Commission will assess a fee for each
facility operating either in an analog or
digital mode. In instances in which a
licensee is simulcasting in both analog
and digital modes, a single regulatory
fee will be assessed for the analog
facility and its corresponding digital
component, but not for both facilities. In
addition, the Report and Order
announces that effective in FY 2014 all
regulatory fee payments must be made
electronically. The Report and Order
also states that beginning in FY 2014 the
Commission will no longer mail out
initial regulatory fee assessments to
CMRS licensees. Finally, the
Commission will refer to the
Department of the Treasury end-to-end
billing and collection beginning in FY
2014.
B. Summary of the Significant Issues
Raised by the Public Comments in
Response to the IRFA
5. Fireweed Communications and
Jeremy Lansman filed joint comments to
the IRFA. They contend that the
proposals in the FY 2013 NPRM greatly
increase the reporting burden on small
broadcasting entities requesting a fee
waiver.130 They also contend that the
IRFA does not describe significant
alternatives to the proposed rules or
exemptions for small entities.131 The
Schedule of Regulatory Fees to be paid
by radio and television broadcasters,
which appears at 47 CFR 1153, takes
into account the size of the market and/
or size of the population served by the
various classes of television and radio
stations. Thus, consideration for smaller
stations is already built in to the
Commission’s regulatory fee structure.
Any station experiencing financial
hardship from the fee increase adopted
today can file for a waiver pursuant to
130 Comments of Fireweed Communications and
Jeremy Landsman at 2.
131 Id.
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47 CFR 1.116. This Report and Order
makes no change in the fee waiver
procedure for any entities seeking a
waiver. We have not proposed any
changes in our regulatory fee process for
small entities. We have not increased
the reporting burden on small entities in
this proceeding. These commenters
appear to be seeking a change in the
waiver process, which is outside the
scope of this proceeding.
C. Description and Estimate of the
Number of Small Entities to Which the
Rules Will Apply
6. 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.132 The RFA generally defines
the term ‘‘small entity’’ as having the
same meaning as the terms ‘‘small
business,’’ ‘‘small organization,’’ and
‘‘small governmental jurisdiction.’’ 133
In addition, the term ‘‘small business’’
has the same meaning as the term
‘‘small business concern’’ under the
Small Business Act.134 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.135 Nationwide,
there are a total of approximately 27.9
million small businesses, according to
the SBA.136
8. Wired Telecommunications
Carriers. The SBA has developed a
small business size standard for Wired
Telecommunications Carriers, which
consists of all such companies having
1,500 or fewer employees. Census data
for 2007 shows that there were 31,996
establishments that operated that year.
Of those 31,996, 1,818 operated with
more than 100 employees, and 30,178
operated with fewer than 100
employees.137 Thus, under this size
standard, the majority of firms can be
considered small.
9. Local Exchange Carriers (LECs).
Neither the Commission nor the SBA
132 5
U.S.C. 603(b)(3).
U.S.C. 601(6).
134 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.’’
135 15 U.S.C. 632.
136 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ https://www.sba.gov/sites/
default/files/FAQ_Sept_2012.pdf.
137 See id.
133 5
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
has developed a size standard for small
businesses specifically applicable to
local exchange services. The closest
applicable size standard under SBA
rules is for Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees.138 According to
Commission data, census data for 2007
shows that there were 31,996
establishments that operated that year.
Of those 31,996, 1,818 operated with
more than 100 employees, and 30,178
operated with fewer than 100
employees.139 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 FY 2013
NPRM.
10. Incumbent LECs. Neither the
Commission nor the SBA has developed
a small business size standard
specifically for incumbent local
exchange services. The closest
applicable 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.140 According to
Commission data, 1,307 carriers
reported that they were incumbent local
exchange service providers.141 Of these
1,307 carriers, an estimated 1,006 have
1,500 or fewer employees and 301 have
more than 1,500 employees.142
Consequently, the Commission
estimates that most providers of
incumbent local exchange service are
small businesses that may be affected by
the rules and policies proposed in the
FY 2013 NPRM.
11. 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.143 According to
Commission data, 1,442 carriers
reported that they were engaged in the
emcdonald on DSK67QTVN1PROD with RULES
138 13
CFR 121.201, NAICS code 517110.
id.
140 13 CFR 121.201, NAICS code 517110.
141 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).
142 Id.
143 13 CFR 121.201, NAICS code 517110.
139 See
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16:22 Aug 22, 2013
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provision of either competitive local
exchange services or competitive access
provider services.144 Of these 1,442
carriers, an estimated 1,256 have 1,500
or fewer employees and 186 have more
than 1,500 employees.145 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.146 In addition, 72
carriers have reported that they are
Other Local Service Providers.147 Of the
72, seventy have 1,500 or fewer
employees and two have more than
1,500 employees.148 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 proposals in
this FY 2013 NPRM.
12. Interexchange Carriers (IXCs).
Neither the Commission nor the SBA
has developed a small business size
standard specifically applicable to
interexchange services. The applicable
size standard under SBA rules is for the
Wired Telecommunications Carriers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.149 According to
Commission data, 359 companies
reported that their primary
telecommunications service activity was
the provision of interexchange
services.150 Of these 359 companies, an
estimated 317 have 1,500 or fewer
employees and 42 have more than 1,500
employees.151 Consequently, the
Commission estimates that the majority
of interexchange service providers are
small entities that may be affected by
rules adopted pursuant to the FY 2013
NPRM.
13. 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.152 Census data for 2007
show that 1,716 establishments
provided resale services during that
year. Of that number, 1,674 operated
with fewer than 99 employees and 42
144 See
Trends in Telephone Service, at tbl. 5.3.
145 Id.
146 Id.
147 Id.
148 Id.
149 13
CFR 121.201, NAICS code 517110.
Trends in Telephone Service, at tbl. 5.3.
150 See
151 Id.
152 13
PO 00000
CFR 121.201, NAICS code 517911.
Frm 00063
Fmt 4700
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52451
operated with more than 100
employees.153 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.154 Of these, all
193 have 1,500 or fewer employees and
none have more than 1,500
employees.155 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 FY 2013
NPRM.
14. 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.156 Census data for 2007
show that 1,716 establishments
provided resale services during that
year. Of that number, 1,674 operated
with fewer than 99 employees and 42
operated with more than 100
employees.157 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.158 Of these, an estimated 211
have 1,500 or fewer employees and two
have more than 1,500 employees.159
Consequently, the Commission
estimates that the majority of local
resellers are small entities that may be
affected by rules adopted pursuant to
the proposals in this FY 2013 NPRM.
15. 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.160 Census data for 2007
show that 1,716 establishments
provided resale services during that
year. Of that number, 1,674 operated
with fewer than 99 employees and 42
operated with more than 100
153 https://factfinder2.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ2&prodType=table.
154 See Trends in Telephone Service, at tbl. 5.3.
155 Id.
156 13 CFR 121.201, NAICS code 517911.
157 https://factfinder2.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ2&prodType=table.
158 See Trends in Telephone Service, at tbl. 5.3.
159 Id.
160 13 CFR 121.201, NAICS code 517911.
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employees.161 Thus, under this category
and the associated small business size
standard, the majority of these resellers
can be considered small entities.
According to Commission data, 881
carriers have reported that they are
engaged in the provision of toll resale
services.162 Of these, an estimated 857
have 1,500 or fewer employees and 24
have more than 1,500 employees.163
Consequently, the Commission
estimates that the majority of toll
resellers are small entities that may be
affected by our proposals in the FY 2013
NPRM.
16. Other Toll Carriers. Neither the
Commission nor the SBA has developed
a size standard for small businesses
specifically applicable to Other Toll
Carriers. This category includes toll
carriers that do not fall within the
categories of interexchange carriers,
operator service providers, prepaid
calling card providers, satellite service
carriers, or toll resellers. The closest
applicable size standard under SBA
rules is for Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees.164 Census data for
2007 shows that there were 31,996
establishments that operated that year.
Of those 31,996, 1,818 operated with
more than 100 employees, and 30,178
operated with fewer than 100
employees.165 Thus, under this category
and the associated small business size
standard, the majority of Other Toll
Carriers can be considered small.
According to Commission data, 284
companies reported that their primary
telecommunications service activity was
the provision of other toll carriage.166 Of
these, an estimated 279 have 1,500 or
fewer employees and five have more
than 1,500 employees.167 Consequently,
the Commission estimates that most
Other Toll Carriers are small entities
that may be affected by the rules and
policies adopted pursuant to the FY
2013 NPRM.
17. Wireless Telecommunications
Carriers (except Satellite). Since 2007,
the SBA has recognized wireless firms
within this new, broad, economic
census category.168 Prior to that time,
such firms were within the nowsuperseded categories of Paging and
Cellular and Other Wireless
161 https://factfinder2.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid=
ECN_2007_US_51SSSZ2&prodType=table.
162 Trends in Telephone Service, at tbl. 5.3.
163 Id.
164 13 CFR 121.201, NAICS code 517110.
165 Id.
166 Trends in Telephone Service, at tbl. 5.3.
167 Id.
168 13 CFR 121.201, NAICS code 517210.
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Telecommunications.169 Under the
present and prior categories, the SBA
has deemed a wireless business to be
small if it has 1,500 or fewer
employees.170 For this category, census
data for 2007 show that there were
11,163 establishments that operated for
the entire year.171 Of this total, 10,791
establishments had employment of 999
or fewer employees and 372 had
employment of 1000 employees or
more.172 Thus, under this category and
the associated small business size
standard, the Commission estimates that
the majority of wireless
telecommunications carriers (except
satellite) are small entities that may be
affected by our proposed action.
18. 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.173 Of
these, an estimated 261 have 1,500 or
fewer employees and 152 have more
than 1,500 employees.174 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.
19. Cable Television and other
Program Distribution. 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.
169 U.S. Census Bureau, 2002 NAICS Definitions,
‘‘517211 Paging,’’ available at https://www.census.
gov/cgibin/sssd/naics/naicsrch?code=517211&
search=2002%20NAICS%20Search; U.S. Census
Bureau, 2002 NAICS Definitions, ‘‘517212 Cellular
and Other Wireless Telecommunications,’’ available
at https://www.census.gov/cgi-bin/sssd/naics/
naicsrch?code=517212&search=2002%20NAICS
%20Search.
170 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).
171 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).
172 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.’’
173 Trends in Telephone Service, at tbl. 5.3.
174 Id.
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Transmission facilities may be based on
a single technology or a combination of
technologies.’’ 175 The SBA has
developed a small business size
standard for this category, which is: all
such firms having 1,500 or fewer
employees.176 Census data for 2007
shows that there were 31,996
establishments that operated that year.
Of those 31,996, 1,818 had more than
100 employees, and 30,178 operated
with fewer than 100 employees. Thus
under this size standard, the majority of
firms offering cable and other program
distribution services can be considered
small and may be affected by rules
adopted pursuant to the FY 2013 NPRM.
20. Cable Companies and Systems.
The Commission has developed its own
small business size standards, for the
purpose of cable rate regulation. Under
the Commission’s rules, a ‘‘small cable
company’’ is one serving 400,000 or
fewer subscribers, nationwide.177
Industry data indicate that, of 1,076
cable operators nationwide, all but
eleven are small under this size
standard.178 In addition, under the
Commission’s rules, a ‘‘small system’’ is
a cable system serving 15,000 or fewer
subscribers.179 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.180 Thus,
under this second size standard, most
cable systems are small and may be
affected by rules adopted pursuant to
the FY 2013 NPRM.
21. All Other Telecommunications.
The Census Bureau defines this industry
as including ‘‘establishments primarily
engaged in providing specialized
175 U.S. Census Bureau, 2007 NAICS Definitions,
‘‘517110 Wired Telecommunications Carriers’’
(partial definition), available at https://www.census.
gov/cgi-bin/sssd/naics/naicsrch?code=517110&
search=2007%20NAICS%20Search.
176 13 CFR 121.201, NAICS code 517110.
177 See 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. See Implementation of
Sections of the 1992 Cable Television Consumer
Protection and Competition Act: Rate Regulation,
MM Docket Nos. 92–266, 93–215, Sixth Report and
Order and Eleventh Order on Reconsideration, 10
FCC Rcd 7393, 7408, para. 28 (1995).
178 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.
179 See 47 CFR 76.901(c).
180 WARREN COMMUNICATIONS NEWS,
TELEVISION & CABLE FACTBOOK 2006, ‘‘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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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.’’ 181 The SBA has developed a
small business size standard for this
category; that size standard is $30.0
million or less in average annual
receipts.182 According to Census Bureau
data for 2007, there were 2,623 firms in
this category that operated for the entire
year.183 Of these, 2478 establishments
had annual receipts of under $10
million and 145 establishments had
annual receipts of $10 million or
more.184 Consequently, we estimate that
the majority of these firms are small
entities that may be affected by our
action. In addition, some small
businesses whose primary line of
business does not involve provision of
communications services hold FCC
licenses or other authorizations for
purposes incidental to their primary
business. We do not have a reliable
estimate of how many of these entities
are small businesses.
D. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
22. This Report and Order does not
adopt any new reporting, recordkeeping,
or other compliance requirements.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
23. 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.185
24. This Report and Order does not
adopt any new reporting requirements.
Therefore no adverse economic impact
on small entities will be sustained based
on reporting requirements. There may
be a regulatory fee increase on small
entities, in some cases and in some
industries, but if so it would be
specifically in furtherance of the reform
measures proposed in the Notice to
better align regulatory fees with
Commission FTEs in core bureaus, as
required under section 9 of the Act. We
are mitigating fee increases to small
entities, and other entities, by, for
example, limiting or capping the annual
increase in regulatory fees to 7.5
percent. Absent a cap, the cable fee
would increase approximately an
additional 15 percent. In keeping with
the requirements of the Regulatory
Flexibility Act, in paragraphs 10 to 28
of this Report and Order, we have
considered certain alternative means of
mitigating the effects of fee increases to
a particular industry segment. In
addition, the Commission’s rules
provide a process by which regulatory
fee payors may seek waivers or other
relief on the basis of financial hardship.
47 CFR 1.1166
F. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rules
26. None.
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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).
181 U.S. Census Bureau, ‘‘2007 NAICS Definitions:
517919 All Other Telecommunications,’’ available
at https://www.census.gov/cgi-bin/sssd/naics/
naicsrch?code=517919&search=2007%20NAICS
%20Search.
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VII. Ordering Clauses
63. 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.
64. It is further ordered that, as
provided in paragraph 59, this Report
and Order shall be effective upon
publication in the Federal Register.
65. 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, to
the Chief Counsel for Advocacy of the
U.S. Small Business Administration.
List of Subjects in 47 CFR Part 1
Practice and procedure.
Federal Communications Commission.
Gloria J. Miles,
Federal Register Liaison.
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, and 310. Cable Landing License Act of
1921, 47 U.S.C. 35–39, and the Middle Class
Tax Relief and Job Creation Act of 2012,
Public Law 112–96.
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)
Address
$40.00
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
40.00
40.00
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
182 13
CFR 121.201, NAICS code 517919.
Census Bureau, 2007 Economic Census,
Subject Series: Information, Table 4, ‘‘Establishment
and Firm Size: Receipts Size of Firms for the United
183 U.S.
PO 00000
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52453
Fmt 4700
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States: 2007 NAICS Code 517919’’ (issued Nov.
2010).
184 Id.
185 5 U.S.C. 603(c)(1)–(c)(4).
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Fee amount 1
Exclusive use services (per license)
2.
3.
4.
5.
6.
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7.
8.
9.
(c) Renewal Only (FCC 601 & 159) ................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ..
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) ..
218–219 MHz Service
(a) New, Renew/Mod (FCC 601 & 159) .........................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 &
159).
(c) Renewal Only (FCC 601 & 159) ................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ..
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) ................................
(d) Renewal Only (Electronic Only) (FCC 601 & 159) ....
Marine Ship.
(a) New, Renewal/Mod (FCC 605 & 159) .......................
(b) New, Renewal/Mod (Electronic Filing) (FCC 605 &
159).
(c) Renewal Only (FCC 605 & 159) ................................
(d) Renewal Only (Electronic Filing) (FCC 605 & 159) ..
Aviation Aircraft.
(a) New, Renew/Mod (FCC 605 & 159) .........................
(b) New, Renew/Mod (Electronic Filing) (FCC 605 &
159).
(c) Renewal Only (FCC 605 & 159) ................................
(d) Renewal Only (Electronic Filing) (FCC 605 & 159) ..
Amateur Vanity Call Signs
(a) Initial or Renew (FCC 605 & 159) .............................
(b) Initial or Renew (Electronic Filing) (FCC 605 & 159)
CMRS Cellular/Mobile Services (per unit)
(FCC 159).
CMRS Messaging Services (per unit)
(FCC 159) ........................................................................
Broadband Radio Service
(formerly MMDS and MDS) .............................................
Local Multipoint Distribution Service
Address
40.00
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
20.00
20.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
20.00
20.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
75.00
75.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
75.00
75.00
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.
5.00
5.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
5.00
5.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 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.
55.00
55.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
55.00
55.00
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
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.
1.61
1.61
.18 2
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
FCC, P.O. Box 979084, St. Louis, MO 63197–9000.
.08 3
FCC, P.O. Box 979084, St. Louis, MO 63197–9000.
510
510
FCC, P.O. Box 979084, St. Louis, MO 63197–9000.
FCC, P.O. Box 979084, 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 § 1.1102 of this chapter.
2 These are standard fees that are to be paid in accordance with § 1.1157(b) of this chapter.
3 These are standard fees that are to be paid in accordance with § 1.1157(b) of this chapter.
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3. Section 1.1153 is revised to read as
follows:
■
§ 1.1153 Schedule of annual regulatory
fees and filing locations for mass media
services.
Radio [AM and FM] (47 CFR part 73)
Fee amount
1. AM Class A
<=25,000 population ........................................................
25,001–75,000 population ...............................................
75,001–150,000 population .............................................
150,001–500,000 population ...........................................
500,001–1,200,000 population ........................................
1,200,001–3,000,000 population .....................................
>3,000,000 population .....................................................
2. AM Class B
<=25,000 population ........................................................
25,001–75,000 population ...............................................
75,001–150,000 population .............................................
150,001–500,000 population ...........................................
500,001–1,200,000 population ........................................
1,200,001–3,000,000 population .....................................
>3,000,000 population .....................................................
3. AM Class C
<=25,000 population ........................................................
25,001–75,000 population ...............................................
75,001–150,000 population .............................................
150,001–500,000 population ...........................................
500,001–1,200,000 population ........................................
1,200,001–3,000,000 population .....................................
>3,000,000 population .....................................................
4. AM Class D
<=25,000 population ........................................................
25,001–75,000 population ...............................................
75,001–150,000 population .............................................
150,001–500,000 population ...........................................
500,001–1,200,000 population ........................................
1,200,001–3,000,000 population .....................................
>3,000,000 population .....................................................
5. AM Construction Permit .....................................................
6. FM Classes A, B1 and C3
<=25,000 population ........................................................
25,001–75,000 population ...............................................
75,001–150,000 population .............................................
150,001–500,000 population ...........................................
500,001–1,200,000 population ........................................
1,200,001–3,000,000 population .....................................
>3,000,000 population .....................................................
7. FM Classes B, C, C0, C1 and C2
<=25,000 population ........................................................
25,001–75,000 population ...............................................
75,001–150,000 population .............................................
150,001–500,000 population ...........................................
500,001–1,200,000 population ........................................
1,200,001–3,000,000 population .....................................
>3,000,000 population .....................................................
8. FM Construction Permits ....................................................
TV (47 CFR, part 73) VHF Commercial
1. Markets 1 thru 10 ........................................................
Address
$775
1,550
2,325
3,475
5,025
7,750
9,300
FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000.
645
1,300
1,625
2,750
4,225
6,500
7,800
FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000.
590
900
1,200
1,800
3,000
4,500
5,700
FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000.
670
1,000
1,675
2,025
3,375
5,400
6,750
590
FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000.
750
1,500
2,050
3,175
5,050
8,250
10,500
FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000.
925
1,625
3,000
3,925
5,775
9,250
12,025
750
FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000.
86,075
FCC, TV Branch, 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 ...................................................
UHF Commercial
1. Markets 1 thru 10 ........................................................
emcdonald on DSK67QTVN1PROD with RULES
52455
35,050
23,550
13,700
3,675
3,675
2. Construction Permits ...................................................
FCC, Radio, P.O. Box 979084, St. Louis, MO, 3197–9000.
78,975
42,775
22,475
6,250
6,250
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 ..................................................................
FCC, Radio, P.O. Box 979084, St. Louis, MO 63197–9000.
960
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63197–9000.
FCC Satellite TV, P.O. Box 979084, St. Louis, MO 63197–
9000.
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
Radio [AM and FM] (47 CFR part 73)
Fee amount
Low Power TV, Class A TV, TV/FM Translator, & TV/FM
Booster (47 CFR part 74).
Broadcast Auxiliary .................................................................
4. Section 1.1154 is revised to read as
follows:
■
Address
410
10
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.
Radio facilities
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:
■
Address
$20.00
FCC, P.O. Box 979097, St. Louis, MO 63197–9000.
.00347
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:
■
Address
$510
1.02
FCC, Cable, P.O. Box 979084, St. Louis, MO 63197–9000.
§ 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 Orbit) ....................................
$139,100
Space Stations (Non-Geostationary Orbit) .............................
149,875
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
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.
Fee amount
Address
Terrestrial Common Carrier ...........................................
Satellite Common Carrier ..............................................
Satellite Non-Common Carrier ......................................
emcdonald on DSK67QTVN1PROD with RULES
International terrestrial and satellite (capacity as of December 31, 2012)
$0.27 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
VerDate Mar<15>2010
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Jkt 229001
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:
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Louis, MO 63197–9000.
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Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules and Regulations
Submarine cable systems
(capacity as of Dec. 31, 2012)
Fee amount
< 2.5 Gbps ..............................................................................
$13,600
2.5 Gbps or greater, but less than 5 Gbps ............................
27,200
5 Gbps or greater, but less than 10 Gbps .............................
54,425
10 Gbps or greater, but less than 20 Gbps ...........................
108,850
20 Gbps or greater .................................................................
217,675
[FR Doc. 2013–20516 Filed 8–22–13; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Chapter 2
Defense Federal Acquisition
Regulation Supplement; Appendix A,
Armed Services Board of Contract
Appeals, Part 1—Charter
CFR Correction
In Title 48 of the Code of Federal
Regulations, Chapter 2 (Parts 201 to
299), revised as of October 1, 2012, on
page 573, in Appendix A to Chapter 2,
add two lines to the list immediately
preceding Part 1—Charter to read as
follows:
■
Appendix A to Chapter 2—Armed
Services Board of Contract Appeals
*
*
*
*
*
Armed Services Board of Contract Appeals
*
*
*
*
*
Revised 27 June 2000.
Revised 14 May 2007.
*
*
*
*
*
[FR Doc. 2013–20699 Filed 8–22–13; 8:45 am]
BILLING CODE 1505–01–D
DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety
Administration
49 CFR Part 365
emcdonald on DSK67QTVN1PROD with RULES
Transfers of Operating Authority
Registration
Federal Motor Carrier Safety
Administration (FMCSA), DOT.
ACTION: Interpretation.
AGENCY:
FMCSA provides notice
concerning the Agency’s new process
and legal interpretation for recording
transfers of operating authority
SUMMARY:
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16:22 Aug 22, 2013
Jkt 229001
Address
FCC, International,
9000.
FCC, International,
9000.
FCC, International,
9000.
FCC, International,
9000.
FCC, International,
9000.
registration by non-exempt for-hire
motor carriers, property brokers and
freight forwarders.
DATES: The process and interpretation
are effective October 22, 2013.
FOR FURTHER INFORMATION CONTACT: Mr.
Jeff Secrist, Office of Registration and
Safety Information, U.S. Department of
Transportation, Federal Motor Carrier
Safety Administration, 1200 New Jersey
Avenue SE., Washington, DC 20590–
0001. Telephone (202) 385–2367 or
FMCSAOATransfers@dot.gov. Office
hours are from 8:00 a.m. to 4:30 p.m.,
e.t., Monday through Friday, except
Federal holidays.
SUPPLEMENTARY INFORMATION:
Background
As part of an ongoing assessment of
Agency processes and its retrospective
review of regulations, see E.O. 13563, 76
FR 3221 (Jan. 21, 2011); 5 U.S.C. 610,
FMCSA reexamined its legal authority
for continued enforcement of 49 CFR
part 365, subpart D, ‘‘Transfer of
Operating Rights under 49 U.S.C.
10926.’’ As discussed in the
Supplemental Notice of Proposed
Rulemaking for the Unified Registration
System (URS), 76 FR 66506, 66511
(October 26, 2011), and in the URS Final
Rule, published elsewhere in today’s
Federal Register, Congress repealed
former 49 U.S.C. 10926 as part of the
ICC Termination Act of 1995, Public
Law 104–88, 109 Stat. 803 (Dec. 29,
1995) (ICCTA), and with it the express
authority previously granted to
FMCSA’s predecessor agency (in this
case, the former Interstate Commerce
Commission (ICC)) to review and
approve transfers of operating authority.
However, Congress did not prohibit
the practice—long recognized under the
ICC regulation—of transferring
operating authority rights, nor did it
rescind subpart D or otherwise prohibit
the Agency from continuing to review
and approve such transfers. The ICCTA
and its legislative history were silent
regarding the continued effect of the
regulatory provisions then in place for
transfers of operating rights, and the
PO 00000
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P.O. Box 979084, St. Louis, MO 63197–
P.O. Box 979084, St. Louis, MO 63197–
P.O. Box 979084, St. Louis, MO 63197–
P.O. Box 979084, St. Louis, MO 63197–
P.O. Box 979084, St. Louis, MO 63197–
provisions have remained substantially
unchanged since 1996, in 49 CFR part
365, subpart D. Moreover, the Agency
continues to have a duty under 49
U.S.C. 13902 to register motor carriers
that are fit, willing, and able to comply
with applicable statutory and regulatory
requirements. And transfer approvals
historically have been a reasonable and
effective part of that program.
As a result of the highly specific and
more limited nature of operating
authority, which historically was
defined by such factors as restricted
commodity and territorial scope,
specified regular route designations for
passenger carriers, and types of service
such as contract and common carrier
operations, the regulated community
came to treat operating authority as an
asset of commercial value. Essentially
operating authority was recognized as a
property right that could be bought and
sold, and thus transferred among
disparate controlling interests, without
disrupting the continuity of regulatory
oversight or even warranting a change in
registration number to reflect an
ownership change. Indeed, when
FMCSA’s predecessor Agency, the
Federal Highway Administration,
proposed removing the 49 CFR part 365,
subpart D, transfer regulations in
response to the ICCTA’s repeal of 49
U.S.C. 10926 (63 FR 7362, February 13,
1998), a number of industry commenters
objected, noting that transfers were an
institutionalized part of the regulatory
environment that minimized
registration costs and contributed to
oversight and tracking of the carrier
population. See 70 FR 28990, 28995–
28996 (May 19, 2005). FMCSA
subsequently withdrew the proposal to
remove the transfer regulations in 49
CFR part 365, subpart D (66 FR 27059,
May 16, 2001). But when the Agency
again proposed in the URS rulemaking
to eliminate the part 365 transfer
approval process (70 FR 28990, 28996,
May 19, 2005), the public comment
record again acknowledged that
operating authority transfers were an
established industry practice and
E:\FR\FM\23AUR1.SGM
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Agencies
[Federal Register Volume 78, Number 164 (Friday, August 23, 2013)]
[Rules and Regulations]
[Pages 52433-52457]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-20516]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 13-140; MD Docket No. 12-201; MD Docket No. 08-65; FCC
13-110]
Assessment and Collection of Regulatory Fees for Fiscal Year 2013
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this document 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 2013. 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 August 23, 2013. Payment of regulatory fees is due
September 20, 2013.
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 13-140, MD Docket No. 12-201; MD Docket No. 08-65;
FCC 13-110, adopted on August 8, 2013 and released on August 12, 2013.
I. Procedural Matters
A. Final Paperwork Reduction Act of 1995 Analysis
1. This Report and Order does not contain any new or modified
information collection requirements subject to the Paperwork Reduction
Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does
not contain
[[Page 52434]]
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, see 5 U.S.C 801(a)(1)(A).\1\
---------------------------------------------------------------------------
\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
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.
---------------------------------------------------------------------------
\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'').
---------------------------------------------------------------------------
II. Introduction
3. This Report and Order concludes the rulemaking proceeding
initiated to collect $339,844,000 in regulatory fees for Fiscal Year
(FY) 2013, pursuant to section 9 of the Communications Act of 1934, as
amended (the Act or Communications Act) \3\ and the FY 2013 Further
Continuing Appropriations Act.\4\ These regulatory fees are due in
September 2013.
---------------------------------------------------------------------------
\3\ Procedures for Assessment and Collection of Regulatory Fees;
Assessment and Collection of Regulatory Fees for Fiscal Year 2013,
Notice of Proposed Rulemaking and Further Notice of Proposed
Rulemaking in MD Docket Nos. 12-201, 13-140, and 08-05, 28 FCC Rcd
7790 (2013) (FY 2013 NPRM). Section 9 regulatory fees are mandated
by Congress and collected to recover the regulatory costs associated
with the Commission's enforcement, policy and rulemaking, user
information, and international activities. 47 U.S.C. 159(a).
\4\ In FY 2013, the Consolidated and Further Continuing
Appropriations Act, Public Law 113-6 (2013) at Division F authorizes
the Commission to collect offsetting regulatory fees at the level
provided to the Commission's FY 2012 appropriation of $339,844,000.
See Financial Services and General Government Appropriations Act,
2012, Division C of Public Law 112-74, 125 Stat. 108-9 (2011). The
sequester effectuated by the Budget Control Act of 2011, Public Law
112-15, 101, 125 Stat. 241 (2011) reduced the Commission's budget
for salary and expenses to $322,747,807. See Budget Control Act of
2011, Public Law 112-15, 101, 125 Stat. 241 (2011) (amending 251 of
the Balanced Budget and Emergency Deficit Control Act of 1985,
Public Law 99-177, 99 Stat. 1037 (2005). However, the Budget Control
Act does not alter the congressional directive set out in the
Further Continuing Appropriations Act to collect $339,844,000 in
regulatory fees for FY 2013.
---------------------------------------------------------------------------
4. In addition to proposing the FY 2013 regulatory fees, the FY
2013 NPRM \5\ (78 FR 34612, June 10, 2013) requested comment (see Table
1 below) on a number of proposals to revise the regulatory fee program
to more accurately reflect the regulatory activities of current
Commission full time employees (FTEs).\6\
---------------------------------------------------------------------------
\5\ Table 1 contains a list of commenters and their abbreviated
names. We have used the same abbreviations in referring to those
commenters where we discuss previous comments filed by the same
parties. Where previous comments are cited we have added the date of
the filing to clarify that the comment was filed to an earlier
notice of proposed rulemaking.
\6\ One FTE, a ``Full Time Equivalent'' or ``Full Time
Employee,'' is a unit of measure equal to the work performed
annually by a full time person (working a 40 hour workweek for a
full year) assigned to the particular job, and subject to agency
personnel staffing limitations established by the U.S. Office of
Management and Budget.
Table 1--List of Commenters
------------------------------------------------------------------------
Commenter Abbreviation
------------------------------------------------------------------------
Initial Comments
------------------------------------------------------------------------
American Cable Association....... ACA.
AT&T Services, Inc............... AT&T.
Competitive Carriers Association. CCA.
Critical Messaging Association... CMA.
DIRECTV, LLC..................... DIRECTV.
CTIA--The Wireless CTIA.
Association[supreg].
EchoStar Satellite Operating EchoStar and DISH.
Company and Hughes Network
Systems, LLC and DISH Network
LLC.
Fireweed Communications LLC and Fireweed.
Jeremy Lansman.
International Carrier Coalition.. ICC.
Intelsat License LLC............. Intelsat.
Independent Telephone & ITTA.
Telecommunications Alliance.
Minority Media and MMTC.
Telecommunications Council.
National Association of NAB.
Broadcasters.
North American Submarine Cable NASCA.
Association.
SES Americom, Inc., Inmarsat, SES.
Inc., and Telesat Canada.
Satellite Industry Association... SIA.
Sarkes Tarzian, Inc. and Sky Sarkes Tarzian and Sky Television.
Television, LLC.
Telesat Canada................... Telesat.
Telstra Incorporated and Telstra.
Australia-Japan Cable (Guam)
Limited.
United States Telecom Association USTA.
Martin D. Wade................... Martin D. Wade.
------------------------------------------------------------------------
Reply Comments
------------------------------------------------------------------------
American Cable Association....... ACA.
Arkansas Broadcasters Association ABA.
and Christian Broadcasting
System, LTD.
Clearwire Corporation............ Clearwire.
CTIA--The Wireless CTIA.
Association[supreg].
DIRECTV, LLC..................... DIRECTV.
EchoStar Satellite Operating EchoStar and DISH.
Company and Hughes Network
Systems, LLC and DISH Network
LLC.
Google Fiber Inc................. Google.
International Carrier Coalition.. ICC.
P. Randall Knowles............... Knowles.
[[Page 52435]]
Bennett Z. Kobb.................. Kobb.
National Cable & NCTA.
Telecommunications Association.
Satellite Industry Association... SIA.
SES Americom, Inc., Inmarsat, SES.
Inc., and Telesat Canada.
Verizon and Verizon Wireless..... Verizon.
------------------------------------------------------------------------
5. In this Report and Order we look to current data to determine
the number of FTEs working on regulation and oversight of Interstate
Telecommunications Service Providers (ITSPs) \7\ and other fee
categories and revise the calculation of direct FTEs in the
International Bureau. We also adopt a 7.5 percent limit to any increase
in regulatory fee assessments to industry segments resulting from such
reallocation of FTEs based on current data.\8\ We will require Digital
Low Power, Class A, and TV Translators/Boosters licensees simulcasting
in both an analog or digital mode to pay only a single regulatory fee
for the analog facility and its corresponding digital component. We
conclude that these measures, which will take effect in FY 2013, will
better align regulatory fees with regulatory work performed without
imposing undue economic hardship on certain regulatees.
---------------------------------------------------------------------------
\7\ ITSPs are interexchange carriers (IXCs), incumbent local
exchange carriers (LECs), toll resellers, and other IXC service
providers regulated by the Wireline Competition Bureau.
\8\ The updated FTE data are current as of Sept. 30, 2012.
---------------------------------------------------------------------------
6. This Report and Order also adopts several changes that will take
effect in FY 2014. Among these, UHF and VHF television stations will be
consolidated into one regulatory fee category. We will assess
regulatory fees on Internet Protocol TV (IPTV) licensees and we will
create a new fee category that will include both cable television and
IPTV. Beginning in FY 2014, we will also require that all regulatory
fee payments be made electronically and we will no longer mail out
initial regulatory fee assessments to CMRS licensees. Finally,
beginning in FY 2014, unpaid regulatory fees will be transferred for
collection to the U.S. Department of the Treasury at the end of the
payment period rather than 180 days thereafter.
7. The FTE reallocations and the cap on fee increases we adopt
today are interim measures that constitute the first step in
comprehensively examining and reforming our regulatory fee program so
that the fees paid by all licensees will more accurately reflect the
current cost of regulating them. Various other issues relevant to
revising our regulatory fee program were also raised in either the FY
2013 NPRM or in comments submitted in response to it. Because we
require further information to best determine what action to take on
these complex issues, we will consolidate them for consideration in a
Second Further Notice of Proposed Rulemaking that we will issue
shortly. We recognize that these are complex issues and that resolving
them will be difficult. Nevertheless, we intend to conclusively
readjust regulatory fees within three years.
III. Background
8. Each year the Commission derives the fees that Congress requires
it to collect by determining the full-time equivalent number of
employees performing the regulatory activities specified in section
9(a), ``adjusted to take into account factors that are reasonably
related to the benefits provided to the payer of the fee by the
Commission's activities. . . .'' \9\ Regulatory fees must also cover
the costs the Commission incurs in regulating entities that are
statutorily exempt from paying regulatory fees,\10\ entities whose
regulatory fees are waived,\11\ and entities that provide nonregulated
services.\12\ To calculate regulatory fees, the Commission allocates
the total amount to be collected among the various regulatory fee
categories. This allocation is based on the number of FTEs assigned to
work in each regulatory fee category. FTEs are categorized as
``direct'' if they are performing regulatory activities in one of the
``core'' bureaus, i.e., the Wireless Telecommunications, Media,
Wireline Competition, and International Bureaus. All other FTEs are
considered ``indirect.'' \13\ The total FTEs for each fee category is
determined by counting the number of direct FTEs regulating licensees
in that fee category, plus a proportional allocation of indirect FTEs.
Finally, each regulatee within a fee category pays its proportionate
share based on an objective measure, e.g., revenues, subscribers, or
licenses.\14\
---------------------------------------------------------------------------
\9\ 47 U.S.C. 159(b)(1)(A). When section 9 was adopted, the
total FTEs were to be calculated based on the number of FTEs in the
Private Radio Bureau, Mass Media Bureau, and Common Carrier Bureau.
(The names of these bureaus were subsequently changed.) Satellites
and submarine cable were regulated through the Common Carrier Bureau
before the International Bureau was created.
\10\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2004, Report and Order, 19 FCC Rcd 11662, 11666, para. 11
(2004) (FY 2004 Report and Order). For example, governmental and
nonprofit entities are exempt from regulatory fees under section
9(h) of the Act. 47 U.S.C. 159(h); 47 CFR 1.1162.
\11\ 47 CFR 1.1166.
\12\ E.g., broadband services, non-U.S.-licensed space stations.
\13\ The indirect FTEs are the employees from the following
bureaus and offices: Enforcement Bureau, Consumer and Governmental
Affairs Bureau, Public Safety and Homeland Security Bureau, Chairman
and Commissioners' offices, Office of Managing Director, Office of
General Counsel, Office of the Inspector General, Office of
Communications Business Opportunities, Office of Engineering and
Technology, Office of Legislative Affairs, Office of Strategic
Planning and Policy Analysis, Office of Workplace Diversity, Office
of Media Relations, and Office of Administrative Law Judges,
totaling 967 FTEs.
\14\ For a fuller description of this process, see Assessment
and Collection of Regulatory Fees, Notice of Proposed Rulemaking, 27
FCC Rcd 8458, 8461-62, paras. 8-11 (2012) (FY 2012 NPRM). The
current numbers of direct FTEs are as follows: International Bureau,
119; Media Bureau, 171; Wireline Competition Bureau, 160; and
Wireless Telecommunications Bureau, 98. FTEs involved in section 309
auctions, 194 FTEs, are not included in this analysis because
auctions activities are funded separately.
---------------------------------------------------------------------------
9. We began our regulatory fee reform analysis in the FY 2008
Further Notice of Proposed Rulemaking.\15\ In that proceeding, we
discussed the need to revise and improve our regulatory fee process to
better reflect industry, regulatory, and Commission organizational
changes.\16\ We sought comment on several issues, e.g., reviewing FTE
allocations,\17\ adding wireless providers to the ITSP category,\18\
adding a category for IPTV,\19\
[[Page 52436]]
and adopting a per-subscriber fee for direct broadcast satellite
(DBS).\20\ Lacking a sufficient record, we did not take any further
action on general industry-wide regulatory fee reform at that time;
although we took a significant step in regulatory fee reform in the
subsequent Submarine Cable Order wherein we adopted a new submarine
cable bearer circuit methodology for assessing regulatory fees on a
cable landing license basis.\21\
---------------------------------------------------------------------------
\15\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, Report and Order and Further Notice of Proposed
Rulemaking, 24 FCC Rcd 6388 (2008) (FY 2008 FNPRM).
\16\ FY 2008 FNPRM, 24 FCC Rcd at 6402, para. 30.
\17\ FY 2008 FNPRM, 24 FCC Rcd at 6405, para. 41. USTA proposed
updating the FTE calculations. USTA Comments (9/25/08) at 2-4. ITTA
advocated an annual update of FTE data. ITTA Comments (9/25/08) at
7-9.
\18\ FY 2008 FNPRM, 24 FCC Rcd at 6404, para. 40. ITTA advocated
combining the wireless and ITSP categories. ITTA Comments (9/25/08)
at 7-9.
\19\ FY 2008 FNPRM, 24 FCC Rcd at 6406-07, paras. 48-49.
\20\ FY 2008 FNPRM, 24 FCC Rcd at 6407, para. 50. NCTA
recommended adopting a per-subscriber based regulatory fee for all
multichannel video programming distributors (MVPDs). NCTA Comments
(9/25/08) at 2-4.
\21\ This methodology allocates international bearer circuit
costs among service providers without distinguishing between common
carriers and non-common carriers, by assessing a flat per cable
landing license fee for all submarine cable systems, with higher
fees for larger submarine cable systems and lower fees for smaller
systems. Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, Second Report and Order, 24 FCC Rcd 4208, 4213, para. 11
(2009) (Submarine Cable Order).
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10. In 2012, a report on the Commission's regulatory fee program
issued by the Government Accountability Office provided support for a
fundamental reevaluation of how to align regulatory fees more closely
with regulatory costs.\22\ In the FY 2012 NPRM,\23\ we acknowledged
that the FTE allocations were outdated; that revising the allocations
based on FTEs, without other adjustments, would drastically increase
the regulatory fees for International Bureau regulatees; and we
suggested that not all International Bureau FTEs should be considered
direct FTEs. Comments filed to the FY 2012 NPRM were similar to those
filed by those commenters in this proceeding.\24\
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\22\ See GAO, Federal Communications Commission, ``Regulatory
Fee Process Needs to be Updated,'' Aug. 2012, GAO-12-686 (GAO
Report).
\23\ FY 2012 NPRM, 27 FCC Rcd 8458.
\24\ For example, some commenters argued, in both proceedings,
that the Commission should update its FTEs in each core bureau (AT&T
Comments (9/17/12) at 3-4, CTIA Reply Comments (10/23/12) at 2-4,
Frontier Communications Reply Comments (10/23/12) at 2-6, NCTA Reply
Comments (10/23/12) at 3-6, USTA Comments (9/17/12) at 2-7, Verizon
Comments (9/17/12) at 2-4, ITTA Ex Parte (2/11/13) at 1-2); that DBS
providers should pay regulatory fees to cover Media Bureau
activities (ACA Reply Comments (10/23/12) at 4-12); that DBS
providers should not pay regulatory fees to cover Media Bureau
activities (DIRECTV Ex Parte (11/9/12) at 1-18); and that satellite
and submarine cable operators should not be required to pay
regulatory fees based on the total number of FTEs in the
International Bureau but that the fees should instead be lower
(America Movil Comments (9/17/12) at 2-6, Globalstar Reply Comments
(10/17/12) at 1-2, Global VSAT Forum Reply Comments (10/23/12) at 4-
7, Hughes Network Systems Ex Parte (8/1/12) at 1, Intelsat Reply
Comments (10/23/12) at 2-10, (ICC Comments (9/17/12) at 5-17, NASCA
Comments (9/17/12) at 4-30, SES Ex Parte (3/8/13) at 1-2, SIA
Comments (9/17/12) at 12-15, Sirius XM Radio Inc. Reply Comments
(10/23/12) at 2-5, Telstra Comments (9/17/12) at 3). To the extent
that the FY 2012 and FY 2013 NPRMs raised the same issues for
comment, we have considered herein the comments filed in response to
both NPRMs.
---------------------------------------------------------------------------
11. In the FY 2013 NPRM, we tentatively concluded that our
methodology of assigning direct and indirect FTEs should be revised to
use current FTE data and that we should reexamine how the direct and
indirect costs of our current regulatory activities are allocated among
various categories of Commission licensees.\25\ Because any change in
the allocation of the regulatory fee amount for one category of fee
payors necessarily affects the fees paid by payors in all other fee
categories, we also proposed that such revisions should take into
account the impact on all regulatees. We proposed that the
International Bureau should no longer be entirely classified as a
``core bureau.'' \26\ We sought comment on specific proposals to revise
the allocation of direct and indirect FTEs as well as on more general
policy and procedural proposals to assure that regulatory fees are
equitable, administrable, and sustainable.\27\
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\25\ FY 2013 NPRM, 28 FCC Rcd at 7797, para. 16.
\26\ FY 2013 NPRM, 28 FCC Rcd at 7799, para. 19.
\27\ FY 2013 NPRM, 28 FCC Rcd at 7798-7807, paras. 17-40.
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IV. Discussion
A. Using Current FTE Data
12. As discussed in the FY 2013 NPRM, the current allocations of
direct and indirect FTEs are taken from FTE data compiled in FY 1998
and may no longer accurately reflect the time that Commission employees
devote to these activities.\28\ For example, using 1998 FTE data
results in ITSPs paying 47 percent of the total annual regulatory fee
collection, while the Wireline Competition Bureau employs 29.2 percent
of the Commission's direct FTEs. To address this anomaly, in the FY
2013 NPRM we proposed to use current FY 2012 FTE data.\29\ Several
commenters, e.g., ITTA, AT&T, CTIA, and USTA, generally supported this
proposal.\30\ NAB and other commenters suggest that we defer using this
data until we complete an examination of the effects of implementing
it.\31\ We find that it is consistent with section 9 of the Act to
better align, to the extent feasible, regulatory fees with the current
costs of Commission oversight and regulation and that the critical
issue, noted by NAB and other commenters, is how to equitably resolve
the issues of fairness and administrability the use of the new data
will bring about.
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\28\ FY 2013 NPRM, 28 FCC Rcd at 7794-95, para. 9.
\29\ FY 2013 NPRM, 28 FCC Rcd at 7798, para. 17.
\30\ See, e.g., ITTA Comments at 3-7; CTIA Comments at 10; USTA
Comments at 2-4; AT&T Comments at 1-2.
\31\ NAB Comments at 6 (requesting that ``the Commission
temporarily defer the implementation of the proposals set forth in
the Notice to allow time for additional analysis.''). See also ACA
Comments at 12 (``it would be prudent and fair for the Commission to
do what it can to maintain the regulatory fee status quo until
decisions are made on implementing the pending reforms affecting the
fees paid by cable operators.''); ABA Reply Comments at 3 (urging
the Commission to maintain the current allocations for FY 2013).
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13. We next consider an allocation methodology for direct and
indirect FTEs to better align regulatory fees with the level of current
regulation and we make the allocation more transparent.\32\ Using FY
2012 FTE data,\33\ without other significant changes in our
methodology, would reduce the percentage of regulatory fees allocated
to Wireline Competition Bureau regulatees from 47 percent to 29.2
percent and increase the percentage of fees allocated to International
Bureau regulatees from 6.3 percent to 22 percent.\34\ Therefore,
substituting current FTE data for FY 1998 FTE data, without other
adjustments, would subject international service providers to
significant fee increases.\35\
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\32\ The GAO noted the lack of transparency of the regulatory
fee process and was particularly concerned with the regulatory fee
allocations for the International Bureau and the Wireline
Competition Bureau. See GAO Report at p. 23.
\33\ The FTEs used herein are determined as of Sept. 30, 2012.
\34\ FY 2012 NPRM, 27 FCC Rcd at 8467, para. 25.
\35\ Id.
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14. We find no persuasive argument for perpetuating the use of 14
year-old FTE data as the basis for regulatory fees in FY 2013, and we
therefore adopt our proposal to use current FY 2012 FTE data to
calculate FY 2013 regulatory fees. Instead, the critical issue, noted
by NAB and other commenters, is whether and to what extent we should
adjust the new fees that result from using the current FTE data to
assure that our goals of fairness, sustainability, and administrability
are met.
B. Adjustments to Revised Fees
15. Reallocation of International Bureau FTEs. It is not surprising
that changes in the scope and focus of Commission regulation since FY
1998 produce substantial shifts in the allocation of regulatory fees
when current FTE data is used. In the FY 2013 NPRM we analyzed these in
detail.\36\ The largest shifts would occur in the fees paid by
International Bureau and Wireline Competition Bureau licensees: Fees
paid by the former would triple, and fees paid by the latter would
[[Page 52437]]
decrease by about 40 percent. The fees paid by wireless and media
service licensees would also change, but to a lesser extent.\37\
---------------------------------------------------------------------------
\36\ FY 2013 NPRM, 28 FCC Rcd at 7795-98, paras. 11-17.
\37\ FY 2012 NPRM, 27 FCC Rcd 8458, 8467, para. 25.
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16. The first issue we face is how the Commission should address
these fluctuations in setting regulatory fees for FY 2013. One way
would be to take a fresh look at how direct and indirect FTEs are
allocated to determine whether these allocations accurately reflect the
regulatory activities performed by FTEs in the core bureaus. As we have
previously noted, this analysis is complicated by the convergence of
digitally-based services, which can have the practical effect of
causing the work of FTEs in one bureau to tangentially benefit
licensees in another bureau. In one singular case, however, the work of
a bureau's FTEs primarily benefits licensees regulated by other
bureaus. As we discussed at length in the FY 2012 and FY 2013 NPRMs,
the International Bureau is exceptional compared to the other licensing
bureaus in that the work of many of its FTEs predominantly benefits
other bureaus' licensees rather than its own.\38\ We incorporate that
analysis by reference herein. Based on the facts and analysis we
presented, we adopt our proposal, with one slight modification.
Specifically, as proposed in the FY 2013 NPRM, we reallocate the FTEs
in the International Bureau's Strategic Analysis and Negotiation
Division (SAND), as well as all but 27 direct FTEs in the Policy and
Satellite Divisions as indirect FTEs. In addition, we allocate one FTE
from the Office of the Bureau Chief as direct.\39\ As commenters
suggest, we find that, based on further examination of the work done in
the Office of the Bureau Chief, it is not appropriate to treat the
entire office as indirect.\40\ We therefore now find a more appropriate
number representing the direct FTEs actually engaged in the regulation
and oversight of International Bureau licensees is 28.\41\
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\38\ FY 2012 NPRM, supra at paras. 26--27; FY 2013 NPRM, 28 FCC
Rcd at 7799-7803, paras. 19-28.
\39\ Most commenters agree with our proposal. See, e.g., ICC
Comments at 2-3 & Reply Comments at 3-4 (supports FY 2013 NPRM
proposal for International Bureau); Intelsat Comments at 2-3 (same);
AT&T Comments at 2 (same); Telstra Comments at 2 (same); SES
Comments at 2 (same); SIA Comments at 4-9 & Reply Comments at 2-5
(same); EchoStar and DISH Comments at 6 & Reply Comments at 2-4
(same); NASCA Comments at 3-8 (same).
\40\ See CTIA Comments at 10-11.
\41\ For this reason, the International Bureau would remain a
core bureau, in part.
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17. Not all commenters agreed with these proposals, although
commenters did agree that we should not assign all of the International
Bureau FTEs as direct FTEs. USTA suggests that we follow the proposal
in the FY 2012 NPRM and remove only one division, SAND, from the
``core'' International Bureau.\42\ Several commenters agree that many
of the FTEs in the International Bureau should not be considered
direct, but observe that similar situations occur in other bureaus and
urge us to take a closer look at all bureaus.\43\
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\42\ USTA Comments at 6-7.
\43\ See, e.g., ITTA Comments at 5-6 (Wireline Competition
Bureau's work on Universal Service Fund issues benefits regulatees
in the wireless, cable, and satellite industries); CCA Comments at 6
(the Commission ``should review the functions and activities of all
Bureaus rather than just the International Bureau.''); Comments of
EchoStar and DISH at 7 & Reply Comments at 4 (Commission should
``apply the same type of enhanced scrutiny . . . to bureaus and
offices currently categorized as consisting of `indirect' FTEs' '').
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18. NAB and ABA recommend that we should not limit our analysis to
the International Bureau, but should consider all such cross-cutting
work throughout the Commission before revising our FTE
reallocations.\44\ Commenters have provided specific suggestions for
other reallocations, e.g., assigning Enforcement Bureau and Consumer &
Governmental Affairs FTEs as direct costs to the Wireline Competition
Bureau, Wireless Telecommunications Bureau, and Media Bureau \45\;
assigning some Media Bureau FTEs to the Wireless Telecommunications
Bureau \46\; reallocating regulatory fees among International Bureau
regulatees in order to lower the submarine cable system fee \47\; as
well as assessing Media Bureau costs to DBS providers.\48\
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\44\ NAB Comments at 4-5 (``The Commission should either
undertake a complete accounting or the actual functions of FTEs in
the core bureaus, and allocate regulatory fees accordingly, or
consider retaining the existing process of allocating fees based on
the percentages of FTEs in the core bureaus.''); ABA Reply Comments
at 2-3.
\45\ SIA Comments at 10-11 & Reply Comments at 5-6.
\46\ NAB Comments at 4 (some Media Bureau FTEs work on spectrum
and wireless-related issues).
\47\ NASCA Comments at 8-9; Telstra Comments at 2-3; ICC Reply
Comments at 2.
\48\ We sought comment on this issue and intend to address it in
a subsequent proceeding. See FY 2013 NPRM, 28 FCC Rcd at 6407, para.
50. See, e.g., AT&T Comments at 4-5 (recommending a single MVPD fee
category that would include all MVPDs); ACA Comments at 13-18 (same)
& Reply Comments at 1-6 (``this much-needed regulatory reform will
ensure regulatory parity between cable operators and DBS
providers''); NCTA Reply Comments at 2-5 (``All MVPDs are subject to
some level of regulation administered by the Media Bureau and they
all benefit from the Bureau's regulation of other entities.'');
DIRECTV Comments at 1-20 (opposing including DBS in such a
category); EchoStar and DISH Comments at 18-20 & Reply Comments at
4-6 (same).
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19. We recognize that there is substantial convergence in the
industry and organizational change in the Commission that may support
additional FTE reallocations after further analysis. The high
percentage of indirect FTEs is indicative of the fact that many
Commission activities and costs are not limited to a particular fee
category and instead benefit the Commission as a whole. Even without
the changes we adopt today, the number of non-core bureau FTEs are
almost double the number of core bureau (non-auction) FTEs,
demonstrating that our common costs far outweigh costs assigned to a
particular core bureau.
20. CTIA contends that ``selective reallocation'' would be
``arbitrary and capricious'' \49\ upending the regulatory fee structure
in contravention of section 9 of the Act.\50\ CTIA further maintains
that the Commission's proposal reflects a system of cost allocation
that does not depend on the cost of Commission regulation but rather on
a ``fair share'' rationale that is incompatible with the Act.\51\ This
would cause ``a tremendous amount of complexity and uncertainty'' and,
if applied broadly, would ``threaten[ ] the administrability of the
regulatory fee program.'' \52\ We disagree with these arguments.
Section 9(a) and (b)(1)(A) in relevant part directs the Commission to
establish regulatory fees based on the number of FTEs engaged in
regulatory activities within the named bureaus ``and other offices of
the Commission.'' Thus, the plain wording of the statute requires the
Commission to calculate fees based on what FTEs are doing, not on where
they are located. Nowhere does the statute explicitly or implicitly
limit the Commission's ability to reassign FTEs, and the costs they
represent, among the various bureaus. Furthermore, because the
``benefits provided'' to fee payors by International Bureau FTEs inure
mainly to licensees in other bureaus, the
[[Page 52438]]
reallocation of these FTEs to the other bureaus is consistent with
section 9(b)(1)(A) and is not arbitrary and capricious. Limiting
reassignments to the FTEs in SAND as USTA proposes would also not be
appropriate because further analysis has shown that the work of some
FTEs in the International Bureau's Policy and Satellite Divisions also
predominantly benefits the licensees of other bureaus.
---------------------------------------------------------------------------
\49\ CTIA Comments at 12 (``It would be arbitrary and capricious
for the Commission to implement any reallocation of FTEs in the WCB
without providing parties sufficient time and information to
adequately consider the proposal.'')
\50\ CTIA Comments at 7. CTIA states that ``the Commission's
proposal to subject wireless regulatees to the ITSP regulatory fee
category does not satisfy the necessary conditions set forth in
Section 9.'' Id.
\51\ CTIA Comments at 3. CTIA contends that the wireless
industry's overall contribution to the Commission's budget includes
spectrum auction proceeds. Id.
\52\ CTIA's concern is that the FY 2013 NPRM does not ``provide
a governing standard and, if applied broadly, would upend the
regulatory fee structure.'' CTIA Comments at 11. The only specific
example given by CTIA to support this argument is that the FY 2013
NPRM ``fails to explain why all FTEs in the IB front office would be
treated to a different standard than front office personnel in other
core bureaus, none of whom are considered indirect FTEs.'' Id.
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21. Nor can we agree with NAB that we must toll all FTE
reassignments until we have reexamined the allocation of FTEs
throughout the Commission. As EchoStar and DISH observe, the fact that
we have not yet examined all bureaus on a division or branch level
should not prevent us from adopting our proposal.\53\ As we have noted,
the extent to which the International Bureau's FTEs are engaged in
activities that primarily benefit licensees regulated by other bureaus
is sui generis, and no commenter in this proceeding has submitted any
facts that contradict this finding. Moreover, our analysis shows that
the digitally-driven convergence of formerly separate services will
make a similar examination of possible FTE reallocations among the
other licensing bureaus a much more difficult and lengthy task. It
would be inconsistent with section 9 to delay reallocating the
International Bureau FTEs, where the reallocation is clearly warranted,
while we engage in painstaking examinations of less clear and more
factually complex situations in the other bureaus. Finally, because the
International Bureau's situation is exceptional, we do not perceive
how, as CTIA would argue, that the proposed reallocation can constitute
a ``slippery slope.'' \54\ For these reasons we conclude it is
reasonable and consistent with section 9 of the Act to readjust the
assignment of FTEs in the bureau where the record demonstrates the
clearest case for reassignment.
---------------------------------------------------------------------------
\53\ EchoStar and DISH Reply Comments at 4.
\54\ CTIA Reply Comments at 5, quoting USTA Comments at 7.
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22. At the same time, however, we recognize that a reexamination of
how FTEs are allocated throughout the Commission is an indispensable
part of comprehensively revising the Commission's regulatory fee
program. For this reason as stated in paragraph 5 above, we will issue
a Second Further Notice of Proposed Rulemaking in the near future to
examine these, and other related issues.
23. Limiting Fee Increases. As noted in para. 13 above, using
current FTE figures causes shifts in the allocation of regulatory fee
collection among the Bureaus and, consequently, the fees their
licensees will pay. Because we are required by statute to set
regulatory fees that will recover the entire amount of our
appropriation, any reduction in the proportion of all regulatory fees
paid by licensees in one fee category will necessarily result in an
increase in regulatory fees paid by licensees in others. For the same
reason, limiting fee increases for licensees in some fee categories
will necessarily limit fee decreases that licensees in other fee
categories would otherwise receive. With these considerations in mind,
and to avoid sudden and large changes in the amount of fees paid by
various classes of regulatees, we proposed in the FY 2013 NPRM to cap
increases in FY 2013 fees to no more than 7.5 percent.\55\
---------------------------------------------------------------------------
\55\ FY 2013 NPRM, 28 FCC Rcd at 7803-04, paras. 30-31.
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24. USTA strongly opposes this limitation on fee rate increases or
any other transition to fully normalized fees, contending that such
proposals try to insure fairness to other fee payors while ignoring the
fact that ITSPs have been paying a disproportionate share of regulatory
fees for a decade.\56\ ITTA argues that any cap should only be applied
in FY 2013.\57\ AT&T contends that a cap on increases would be
unnecessary if the Commission fairly accounted for FTE distribution
among all the core bureaus.\58\ The International Carrier Coalition
agreed with our finding that limiting fee increases would have the
unavoidable effect of also limiting fee decreases, and stated that for
that reason ``the proposed 7.5% cap on increases/decreases of
regulatory fees should be an interim measure only.'' \59\
---------------------------------------------------------------------------
\56\ USTA Comments at 4-5. Several commenters agree that a
limitation on fee increases is needed to prevent economic hardship.
See, e.g., CCA Comments at 6 (``any fee increases resulting from the
use of updated data should be capped to limit the severity of the
impact on payors''); Echostar and DISH Comments at 13-14 (``a
reasonable approach would be for the Commission to establish a
guideline providing for a multi-year phase in of any fee increase
where the change would exceed the rate of inflation''); NASCA
Comments at 10 (a 7.5% ``cap on fee increases is consistent with the
requirements of Section 9''); ACA Comments at 11 (supporting the
proposed 7.5% cap); SIA Reply Comments at 9-10 (a cap on fee
increases is needed); ICC Reply Comments at 4 (the proposed cap
should be an interim measure only); ABA Reply Comments at 2 (even
with the 7.5% cap, the fee increase will cause ``irreparable
injury'' to small broadcasters). See also NAB Comments at 6 (``We
also urge the Commission to be cognizant of the burden that
regulatory fees impose on some Commission licensees, particularly
the smallest broadcast stations, which may have a few as two or
three permanent staff.'').
\57\ ITTA Comments at 2.
\58\ AT&T Comments at 2.
\59\ ICC Comments at 7. Also see note 69 below.
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25. We disagree with the commenters objecting to the imposition of
the 7.5% cap on fee increases. As an initial matter we note that the
imposition of a cap on fee increases is not unprecedented. In 1997 we
imposed a 25 percent cap to avoid the prospect of ``fee shock''
resulting from large and unpredictable fluctuations in fees.\60\ Today,
a different set of circumstances supports the imposition of a more
modest, interim cap. The regulatory fees we adopt today reflect only
the first of a series of changes that we will consider in the
comprehensive revision of our regulatory fee program. As we noted in
the FY 2013 NPRM, and in para. 5 above, there are unresolved regulatory
fee reform initiatives on which we will seek comment and which could be
adopted and implemented in setting regulatory fees in FY 2014.\61\
Capping fee increases at 7.5% is a conservative interim approach to
assure that any fee increases resulting from use of the new FTE data
will be reasonable as we transition to a revised regulatory fee program
in which regulatory fees will more closely reflect the current costs
and benefits of Commission regulation.
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\60\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 1997, Report and Order, 12 FCC Rcd 17161, 17176, para. 37
(1997). The fee shock the Commission sought to avoid was caused by
the use of employee time sheet entries to calculate direct and
indirect FTEs, a methodology that was ultimately abandoned as
unworkable.
\61\ FY 2013 NPRM, 28 FCC Rcd at 7803, para. 30.
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26. USTA and other commenters have pointed out that ITSPs will be
most affected by any limitation on fee increases. USTA opposes the 7.5%
cap on fee increases, contending that ITSPs have been paying ``an
inordinate share of regulatory fees, paying 47 percent of the total
fees while only 29.2 percent of the direct FTEs are assigned to the
Wireline Competition Bureau.'' \62\
---------------------------------------------------------------------------
\62\ USTA Comments at 4-5. AT&T contends that a cap on increases
should be unnecessary if the Commission would fairly account for FTE
distribution among the core bureaus. AT&T Comments at 2.
---------------------------------------------------------------------------
27. We agree with USTA's contention that ITSP fees should be
reduced to more accurately reflect the regulatory costs that the
industry currently generates, and thus the interim fees we adopt today
give ITSPs a significant reduction in their FY 2013 fees. However, we
cannot ``flash cut'' to immediate, unadjusted use of the FY 2012 FTE
data without engendering significant and unexpected fee increases for
other categories of fee payors. As noted above, the cap we impose on
fee increases for some licensees will unavoidably limit the fee
reductions other licensees, like ITSPs, would otherwise enjoy; simply
put, capping fee increases reduces the amount of money available to
effectuate all of the
[[Page 52439]]
reductions in this fiscal year. We are satisfied, however, that as an
interim measure the limitations on fee increases are reasonable, and
the resulting fee changes are likewise reasonable. Moreover, as this is
an interim measure, we commit to revisit these issues and make whatever
further fee reductions are warranted in the course of adopting further
revisions to our regulatory fee program.\63\
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\63\ ITTA proposes a 14% limitation, for one year. ITTA Ex Parte
Communication (July 11, 2013) at 2. For the reasons discussed above,
we disagree with ITTA's proposal.
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28. Limiting Fee Decreases. We are confronted with somewhat
different issues in evaluating whether to cap the amount of the fee
decrease that any class of fee payors might otherwise receive as a
result of our use of current FTE data. The revised FY 2013 fee
calculations appearing at Attachment B of the FY 2013 NPRM reflect both
a 10% cap on decreases, as well as a 7.5% cap on increases.\64\
Although the caption to Attachment B clearly stated that the fees
resulted from the imposition of a 7.5% cap, it did not state that the
fees also reflected a 10% cap on decreases. The text of the FY 2013
NPRM did not reference this fact, however, nor did it request comment
on the issue of capping fee decreases. Although we requested comment on
the general issues of limiting fee increases and adopting possible
measures to address the impacts of such limits, no party specifically
addressed the issue of an offsetting limit to decreases in
comments.\65\ Under these circumstances, we cannot find that interested
parties were afforded an adequate opportunity to comment on the issue
of capping fee decreases. Although this situation would normally be
addressed by requesting comments on this issue, here we would not be
able to receive and analyze further comments in time to publish and
collect fees by the end of FY 2013. Further, as stated above, we find
the FY 2013 fee changes resulting from imposition of a 7.5% cap on fee
increases to be reasonable. For these reasons we find it necessary to
adopt revised FY 2013 fee calculations that reflect only the
application of a 7.5% cap on fee increases and no cap on fee decreases.
The revised fees are set forth in Table 2 and Table 3 below. The
sources of the units for the fees appear in Table 4.
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\64\ 28 FCC Rcd 7790, 7823, Attachment B, ``Revised FTE (as of
9/30/12) Allocations, Fee Rate Increases Capped at 7.5%, Prior to
Rounding.''
\65\ As noted at para. 22 supra, ICC in its comments referred to
``the proposed 7.5% cap on fee increases/decreases,'' but in context
ICC was simply addressing the fact, discussed above, that limiting
fee increases will necessarily limit fee decreases as well. ICC did
not discuss the specific issue of whether fee decreases should be
capped and, if so, at what level.
Table 2--Revised FTE (as of 9/30/12) Allocations,\5\ Fee Rate Increases Capped at 7.5%; Calculation of FY 2013 Revenue Requirements and Pro-Rata Fees
[The first ten regulatory fee categories in the table 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.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rounded &
FY 2012 Pro-Rated FY Uncapped FY capped FY
Fee category FY 2013 payment Years revenue 2013 revenue 2013 2013 Expected FY
units estimate requirement regulatory regulatory 2013 revenue
fee fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)............................... 1,400 10 490,000 605,350 43 40 560,000
PLMRS (Shared use).................................. 15,000 10 2,250,000 2,897,033 19 15 2,250,000
Microwave........................................... 13,200 10 2,640,000 2,853,794 22 20 2,640,000
218-219 MHz (Formerly IVDS)......................... 5 10 3,500 4,324 86 75 3,750
Marine (Ship)....................................... 6,550 10 655,000 951,265 15 10 655,000
GMRS................................................ 7,900 5 192,500 345,914 9 5 197,500
Aviation (Aircraft)................................. 2,900 10 290,000 432,393 15 10 290,000
Marine (Coast)...................................... 285 10 142,500 172,957 61 55 156,750
Aviation (Ground)................................... 900 10 135,000 172,957 19 15 135,000
Amateur Vanity Call Signs........................... 14,300 10 214,500 259,436 1.81 1.61 230,230
AM Class A \4\...................................... 65 1 250,100 294,808 4,536 4,400 286,000
AM Class B \4\...................................... 1,510 1 3,125,875 3,664,040 2,427 2,275 3,435,250
AM Class C \4\...................................... 890 1 1,107,975 1,305,578 1,467 1,350 1,201,500
AM Class D \4\...................................... 1,500 1 3,698,400 4,337,887 2,892 2,575 3,862,500
FM Classes A, B1 & C3 \4\........................... 3,075 1 7,764,750 8,970,581 2,917 2,725 8,379,375
FM Classes B, C, C0, C1 & C2 \4\.................... 3,140 1 9,513,000 11,034,236 3,514 3,375 10,597,500
AM Construction Permits............................. 51 1 35,750 42,115 826 590 30,090
FM Construction Permits \1\......................... 190 1 84,000 421,154 2,217 750 142,500
Satellite TV........................................ 125 1 178,125 210,577 1,685 1,525 190,625
Satellite TV Construction Permit.................... 3 1 3,580 4,212 1,404 960 2,880
VHF Markets 1-10.................................... 23 1 1,761,650 2,366,150 102,876 86,075 1,979,725
VHF Markets 11-25................................... 23 1 1,836,875 2,454,013 106,696 78,975 1,816,425
VHF Markets 26-50................................... 39 1 1,512,400 2,034,276 52,161 42,775 1,668,225
VHF Markets 51-100.................................. 61 1 1,255,500 1,757,149 28,806 22,475 1,370,975
VHF Remaining Markets............................... 137 1 798,025 1,020,393 7,448 6,250 856,250
VHF Construction Permits \1\........................ 1 1 11,650 6,250 6,250 6,250 6,250
UHF Markets 1-10.................................... 112 1 3,853,150 4,248,631 37,934 38,000 4,256,000
UHF Markets 11-25................................... 109 1 3,458,250 3,781,729 34,695 35,050 3,820,450
UHF Markets 26-50................................... 140 1 2,959,875 3,232,818 23,092 23,550 3,297,000
UHF Markets 51-100.................................. 239 1 2,868,750 3,099,301 12,968 13,700 3,274,300
UHF Remaining Markets............................... 247 1 845,975 916,915 3,712 3,675 907,725
UHF Construction Permits \1\........................ 4 1 23,975 14,700 3,675 3,675 14,700
Broadcast Auxiliaries............................... 25,400 1 248,000 336,923 13 10 254,000
LPTV/Translators/Boosters/Class A TV................ 3,725 1 1,436,820 1,684,616 452 410 1,527,250
CARS Stations....................................... 325 1 178,125 210,634 648 510 165,750
Cable TV Systems.................................... 60,000,000 1 59,090,000 69,719,942 1.162 1.02 61,200,000
Interstate Telecommunication Service Providers...... $39,000,000,000 1 148,875,000 118,979,384 0.00305 0.00347 135,330,000
CMRS Mobile Services (Cellular/Public Mobile)....... 326,000,000 1 53,210,000 63,105,583 0.194 0.18 58,680,000
CMRS Messag. Services............................... 3,000,000 1 272,000 240,000 0.0800 0.080 240,000
[[Page 52440]]
BRS \2\............................................. 920 1 451,250 693,680 754 510 469,200
LMDS................................................ 170 1 225,625 128,180 754 510 86,700
Per 64 kbps Int'l Bearer Circuits Terrestrial 3,823,249 1 1,157,602 1,066,139 .279 .27 1,032,277
(Common) & Satellite (Common & Non-Common).........
Submarine Cable Providers (see chart in Appendix C) 39.19 1 8,150,984 7,504,167 191,494 217,675 8,530,139
\3\................................................
Earth Stations...................................... 3,400 1 893,750 824,068 242 275 935,000
Space Stations (Geostationary)...................... 87 1 11,560,125 10,646,958 122,379 139,100 12,101,700
Space Stations (Non-Geostationary).................. 6 1 858,900 791,105 131,851 149,875 899,250
Total Estimated Revenue to be Collected............. ................ ...... 340,568,811 339,844,006 ........... ........... 339,965,741
Total Revenue Requirement........................... ................ ...... 339,844,000 339,844,000 ........... ........... 339,844,000
Difference.......................................... ................ ...... 724,811 6 ........... ........... 121,741
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ 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. 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 Table 3 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 2013 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
service. The actual FY 2013 regulatory fees for AM/FM radio stations are listed on a grid located at the end of Table 3.
\5\ The allocation percentages represent FTE data as of September 30, 2012, and include the proposal to use 28 Direct FTEs (rather than 119 FTEs) for
the International Bureau.
Table 3--Revised FTE (as of 9/30/12) Allocations,\1\ Fee Rate Increases
Capped at 7.5%; FY 2013 Schedule of Regulatory Fees
[The first eleven regulatory fee categories in the table 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.
Fee category $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 40
CFR part 90).
Microwave (per license) (47 CFR part 20
101).
218-219 MHz (Formerly Interactive Video 75
Data Service) (per license) (47 CFR
part 95).
Marine (Ship) (per station) (47 CFR 10
part 80).
Marine (Coast) (per license) (47 CFR 55
part 80).
General Mobile Radio Service (per 5
license) (47 CFR part 95).
Rural Radio (47 CFR part 22) 15
(previously listed under the Land
Mobile category).
PLMRS (Shared Use) (per license) (47 15
CFR part 90).
Aviation (Aircraft) (per station) (47 10
CFR part 87).
Aviation (Ground) (per license) (47 CFR 15
part 87).
Amateur Vanity Call Signs (per call 1.61
sign) (47 CFR part 97).
CMRS Mobile/Cellular Services (per .18
unit) (47 CFR parts 20, 22, 24, 27, 80
and 90).
CMRS Messaging Services (per unit) (47 .08
CFR parts 20, 22, 24 and 90).
Broadband Radio Service (formerly MMDS/ 510
MDS) (per license) (47 CFR part 27). 510
Local Multipoint Distribution Service
(per call sign) (47 CFR, part 101).
AM Radio Construction Permits.......... 590
FM Radio Construction Permits.......... 750
TV (47 CFR part 73) VHF Commercial:
Markets 1-10....................... 86,075
Markets 11-25...................... 78,975
Markets 26-50...................... 42,775
Markets 51-100..................... 22,475
Remaining Markets.................. 6,250
Construction Permits............... 6,250
TV (47 CFR part 73) UHF Commercial:
Markets 1-10....................... 38,000
Markets 11-25...................... 35,050
Markets 26-50...................... 23,550
Markets 51-100..................... 13,700
Remaining Markets.................. 3,675
Construction Permits............... 3,675
Satellite Television Stations (All 1,525
Markets):.
Construction Permits--Satellite 960
Television Stations.
[[Page 52441]]
Low Power TV, Class A TV, TV/FM 410
Translators & Boosters (47 CFR part
74).
Broadcast Auxiliaries (47 CFR part 74). 10
CARS (47 CFR part 78).................. 510
Cable Television Systems (per 1.02
subscriber) (47 CFR part 76).
Interstate Telecommunication Service .00347
Providers (per revenue dollar).
Earth Stations (47 CFR part 25)........ 275
Space Stations (per operational station 139,100
in geostationary orbit) (47 CFR part
25) also includes DBS Service (per
operational station) (47 CFR part 100).
Space Stations (per operational system 149,875
in non-geostationary orbit) (47 CFR
part 25).
International Bearer Circuits-- .27
Terrestrial/Satellites (per 64KB
circuit).
International Bearer Circuits-- See Table Below
Submarine Cable.
------------------------------------------------------------------------
\1\ The allocation percentages represent FTE data as of September 30,
2012, and include the proposal to use 28 Direct FTEs (rather than 119
FTEs) for the International Bureau.
FY 2013 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
FM FM
AM Class AM Class AM Class AM Class Classes Classes
Population served A B C D A, B1 & B, C, C0,
C3 C1 & C2
----------------------------------------------------------------------------------------------------------------
<=25,000...................................... $775 $645 $590 $670 $750 $925
25,001-75,000................................. 1,550 1,300 900 1,000 1,500 1,625
75,001-150,000................................ 2,325 1,625 1,200 1,675 2,050 3,000
150,001-500,000............................... 3,475 2,750 1,800 2,025 3,175 3,925
500,001-1,200,000............................. 5,025 4,225 3,000 3,375 5,050 5,775
1,200,001-3,000,00............................ 7,750 6,500 4,500 5,400 8,250 9,250
>3,000,000.................................... 9,300 7,800 5,700 6,750 10,500 12,025
----------------------------------------------------------------------------------------------------------------
FY 2013 Schedule of Regulatory Fees: Fee Rate Increases Capped at 7.5%
[International Bearer Circuits--Submarine Cable]
------------------------------------------------------------------------
Submarine cable systems
(capacity as of December 31, Fee amount Address
2012)
------------------------------------------------------------------------
< 2.5 Gbps..................... $13,600 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-9000.
2.5 Gbps or greater, but less 27,200 FCC, International,
than 5 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
5 Gbps or greater, but less 54,425 FCC, International,
than 10 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
10 Gbps or greater, but less 108,850 FCC, International,
than 20 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
20 Gbps or greater............. 217,675 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-9000.
------------------------------------------------------------------------
Table 4--Sources of Payment Unit Estimates for FY 2013
In order to calculate individual service fees for FY 2013, we
adjusted FY 2012 payment units for each service to more accurately
reflect expected FY 2013 payment liabilities. We obtained our updated
estimates through a variety of means. For example, we used Commission
licensee data bases, actual prior year payment records and industry and
trade association projections when available. The databases we
consulted include our Universal Licensing System (``ULS''),
International Bureau Filing System (``IBFS''), Consolidated Database
System (``CDBS'') and Cable Operations and Licensing System
(``COALS''), as well as reports generated within the Commission such as
the Wireline Competition Bureau's Trends in Telephone Service and the
Wireless Telecommunications Bureau's Numbering Resource Utilization
Forecast.
We sought verification for these estimates from multiple sources
and, in all cases; we compared FY 2013 estimates with actual FY 2012
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 2013 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 2013 payment units are based on FY 2012
actual payment units, it does not necessarily mean that our FY 2013
projection is exactly the same number as in FY 2012. We have either
rounded the FY 2013 number or adjusted it slightly to account for these
variables.
[[Page 52442]]
------------------------------------------------------------------------
Fee category Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, Based on Wireless Telecommunications
218-219 MHz, Marine (Ship & Bureau (``WTB'') projections of new
Coast), Aviation (Aircraft & applications and renewals taking into
Ground), GMRS, Amateur consideration existing Commission
Vanity Call Signs, Domestic licensee data bases. Aviation (Aircraft)
Public Fixed. 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
12 payment data.
CMRS Messaging Services...... Based on WTB reports, and FY 12 payment
data.
AM/FM Radio Stations......... Based on CDBS data, adjusted for
exemptions, and actual FY 2012 payment
units.
UHF/VHF Television Stations.. Based on CDBS data, adjusted for
exemptions, and actual FY 2012 payment
units.
AM/FM/TV Construction Permits Based on CDBS data, adjusted for
exemptions, and actual FY 2012 payment
units.
LPTV, Translators and Based on CDBS data, adjusted for
Boosters, Class A Television. exemptions, and actual FY 2012 payment
units.
Broadcast Auxiliaries........ Based on actual FY 2012 payment units.
BRS (formerly MDS/MMDS)...... Based on WTB reports and actual FY 2012
LMDS......................... payment units.
Based on WTB reports and actual FY 2012
payment units.
Cable Television Relay Based on data from Media Bureau's COALS
Service (``CARS'') Stations. database and actual FY 2012 payment
units.
Cable Television System Based on publicly available data sources
Subscribers. for estimated subscriber counts and
actual FY 2011 payment units.
Interstate Telecommunication Based on FCC Form 499-Q data for the four
Service Providers. quarters of calendar year 2012, the
Wireline Competition Bureau projected
the amount of calendar year 2012 revenue
that will be reported on 2013 FCC Form
499-A worksheets in April, 2013.
Earth Stations............... Based on International Bureau (``IB'')
licensing data and actual FY 2012
payment units.
Space Stations (GSOs & NGSOs) Based on IB data reports and actual FY
2012 payment units.
International Bearer Circuits Based on IB reports and submissions by
licensees.
Submarine Cable Licenses..... Based on IB license information.
------------------------------------------------------------------------
29. The most significant shifts between the recalculated fees we
adopt today and the fees that appear in Attachment B of the FY 2013
Notice affect International Bureau licensees. The reallocation of FTEs
from the International Bureau, combined with a 10% cap on decreases,
would have provided licensees of Earth Stations, Geostationary Orbit
Space Stations, Non-Geostationary Orbit Satellite Systems, and
Submarine Cable Systems with reductions of 3.85% to 10.01% from the
fees they paid in FY 2012.\66\ Removing the 10% cap on decreases causes
the fees these licensees will pay in FY 2013 to increase between 2.31%
and 4.70% over the fees they paid in FY 2012.\67\ Although at variance
from the results we had projected, we find that these modest increases
in the fees international service licensees will pay this year are
unlikely to affect their ability to continue offering the services for
which the Commission has licensed them.\68\ Moreover, we emphasize
again that the adjustments reflected in all the fees we adopt today are
but an initial step in the process of comprehensively reforming the way
we assess regulatory fees, a process that we anticipate will lead to
further significant changes in the regulatory fees Commission licensees
will pay in FY 2014 and beyond.
---------------------------------------------------------------------------
\66\ The specific reductions would have been 10.91% for Earth
Stations, 10.01% for Geostationary Orbit Space Stations, Non-
Geostationary Orbit Satellite Systems, and Submarine Cable Systems,
and 3.85% for International Bearer Circuits.
\67\ The specific increases will be Geostationary Orbit Space
Stations, 4.68%, Non-Geostationary Orbit Satellite Systems, 4.70%,
International Bearer Circuits, 3.85%, and Submarine Cable Systems,
2.31%. Fees for Earth Stations will not increase. Applying the other
adjustments we adopt today while removing the 10% cap on decreases
means that ITSPs' FY 2013 fees will be reduced by 7.47% instead of
4.27%.
\68\ The Commission's rules allow any individual licensee unable
to pay its regulatory fees to request and obtain a waiver,
reduction, or deferral of payment for good cause shown. See 47 CFR
1.1166.
---------------------------------------------------------------------------
30. The new allocations that result from the International Bureau
FTE reassignments and the imposition of the 7.5 percent cap are as
follows:\69\
---------------------------------------------------------------------------
\69\ The allocations before imposition of a 7.5% cap on
increases are 6.13%, 37.42%, 35.01%, and 21.44% respectively.
[[Page 52443]]
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
International Bureau..................... Formerly 6.3%............... FY 2013 6.91%.
Media Bureau............................. Formerly 30.2%.............. FY 2013 33.69%.
Wireline Competition Bureau.............. Formerly 46.7%.............. FY 2013 39.81%.
Wireless Telecommunications Bureau....... Formerly 16.8%.............. FY 2013 19.59%.
----------------------------------------------------------------------------------------------------------------
C. Changes to the Fee Categories, Using Revised FTE Data
31. As we discussed above in paragraph 18, we intend to further
examine other possible FTE reallocations. We have concluded that the
International Bureau is exceptional in that most of its activities
benefit the regulatees of other bureaus and offices instead of its own
regulatees, and none of the commenters have shown that this is the case
to the same extent with regard to any other core bureau. If parties can
show that other bureaus' activities directly benefit licensees of
different bureaus as disproportionately as the International Bureau's
activities do, or that a non-core bureau's activities benefit only
certain bureaus or regulatees, we will consider those showings in
setting regulatory fees in FY 2014. We will continue to examine these
suggestions as we continue our regulatory fee reform, as well as our
proposals that we do not reach in this Report and Order: to combine the
ITSP and wireless categories,\70\ to use revenues in calculating all
regulatory fees,\71\ and to include DBS providers in a new MVPD
category.\72\ We find additional time is necessary and appropriate to
examine these proposals under Section 9 of the Communications Act and
analyze how these proposals account for changes in the communications
industry and the Commission's regulatory processes and staffing.\73\
---------------------------------------------------------------------------
\70\ ITTA supports this proposal. ITTA Comments at 3-7. Other
commenters, however, do not. See, e.g., CTIA Comments at 6-8 & Reply
Comments at 3; AT&T Comments at 3; CCA Comments at 3-6; Verizon
Reply Comments at 1-2.
\71\ ITTA supports a revenue-based assessment for wireline and
wireless voice services. See ITTA Comments at 7-9. Fireweed supports
a revenue-based assessment, with a discount for broadcasters. See
Fireweed Comments at 3-6. Several commenters oppose this proposal.
See, e.g., ACA Comments at 8-9; CTIA Comments at 8 & ex parte (7/15/
13) at 1-2; DIRECTV Comments at 18-19; EchoStar and DISH Comments at
10-12; NASCA Comments at 13-14; NCTA Reply Comments at 5-6; SES
Comments at 2; SIA Reply Comments at 8.
\72\ See, e.g., AT&T Comments at 4-5; ACA Comments at 13-18 &
Reply Comments at 1-6; NCTA Reply Comments at 2-5. DIRECTV and
EchoStar and DISH oppose this proposal. See DIRECTV Comments at 1-
20; EchoStar and DISH Comments at 18-20 & Reply Comments at 4-6.
\73\ See, e.g., NAB Comments at 6 (requesting that ``the
Commission temporarily defer the implementation of the proposals set
forth in the Notice to allow time for additional analysis.''); ACA
Comments at 12 (``it would be prudent and fair for the Commission to
do what it can to maintain the regulatory fee status quo until
decisions are made on implementing the pending reforms affecting the
fees paid by cable operators.''); ABA Reply Comments at 3 (urging
the Commission to maintain the current allocations for FY 2013).
---------------------------------------------------------------------------
D. Other Telecommunications Regulatory Fee Issues
1. Combining UHF/VHF Television Regulatory Fees Into One Fee Category
Effective FY 2014
32. Regulatory fees for full-service television stations are
calculated based on two, five-tiered market segments for Ultra High
Frequency (UHF) and Very High Frequency (VHF) television stations.
After the transition to digital television on June 12, 2009, we
proposed that the Commission combine the VHF and UHF regulatory fee
categories.\74\ In response, Fireweed argued that we should base the
regulatory fee structure on three tiers and Sky Television, LLC,
Spanish Broadcasting System, Inc., and Sarkes Tarzian argued that
instead of six separate categories for both VHF and UHF we should
combine all television stations into a single six-tiered category based
on market size, thus eliminating any distinction between VHF and
UHF.\75\ In its most recent comments, Sarkes Tarzian and Sky Television
support our proposal to combine the VHF and UHF fee categories within
the same market area into one fee category but suggests that the
Commission implement this proposal in FY 2013 rather than FY 2014.\76\
In a recent Notice of Ex Parte Presentation, filed by Sarkes Tarzian
and Sky Television on February 15, 2013, these parties argued that
because VHF stations are less desirable than UHF stations it is unfair
to levy higher fees on them.
---------------------------------------------------------------------------
\74\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2010, Report and Order, 25 FCC Rcd 9278, 9285-86, at paras. 18-
20 (2010) (FY 2010 Report and Order).
\75\ See also Notice of Ex Parte Presentation, filed by Sarkes
Tarzian and Sky Television (Feb. 15, 2013) (arguing that VHF
stations are less desirable than UHF stations and it was unfair to
have higher fees for such stations; instead the fee categories
should be combined).
\76\ See Sarkes Tarzian and Sky Television Comments at 2-5.
---------------------------------------------------------------------------
33. Historically, analog VHF channels (channels 1-13) were coveted
for their greater prestige and larger audience, and thus the regulatory
fees assessed on VHF stations were higher than regulatory fees assessed
for UHF (channels 14 and above) stations in the same market area. After
the digital conversion, it became evident that VHF channels were less
desirable than digital UHF channels, and thus there may no longer be a
basis in which to assess a higher regulatory fee on VHF channels.
Therefore, in the FY 2013 NPRM we proposed to combine the VHF and UHF
stations in the same market area into one fee category beginning in FY
2014 and eliminate the fee disparity between VHF and UHF stations. For
the reasons given in the FY 2013 NPRM, we adopt our proposal to combine
UHF and VHF full service television station categories into one fee
category.
34. Sarkes Tarzian and Sky Television also request that the
Commission implement this proposal in FY 2013.\77\ With respect to this
request, we note that section 9(b)(3) directs the Commission to add,
delete, or reclassify services in the fee schedule to reflect
additions, deletions, or changes in the nature of its services ``as a
consequence of Commission rulemaking proceedings or changes in law.''
\78\ Combining UHF and VHF full-service television stations into one
fee category constitutes a reclassification of services in the
regulatory fee schedule as defined in section 9(b)(3) of the Act,\79\
and pursuant to section 9(b)(4)(B) must be submitted to Congress at
least 90 days before it becomes effective.\80\ The Commission will not
have sufficient time to implement this change before September 30, 2013
and therefore we will implement this change in FY 2014.
---------------------------------------------------------------------------
\77\ See Sarkes Tarzian and Sky Television Comments at 2-5.
\78\ 47 U.S.C. 159(b)(3).
\79\ 47 U.S.C. 159(b)(3).
\80\ 47 U.S.C. 159(b)(4)(B).
---------------------------------------------------------------------------
2. Including Internet Protocol TV in Cable Television Systems Category,
for FY 2014
35. IPTV is digital television delivered through a high speed
Internet connection, instead of by the traditional cable method. IPTV
service generally is offered bundled with the customer's Internet and
telephone or VoIP services. In the FY 2008 Report and Order we first
sought comment on whether this service should be subject to regulatory
fees.\81\ In the FY 2013 NPRM, we
[[Page 52444]]
observed that by assessing regulatory fees on cable television systems,
but not on IPTV, we may place cable providers at a competitive
disadvantage.\82\ Commenters addressing this issue agree that we should
assess regulatory fees on that service.\83\ IPTV and cable service
providers benefit from Media Bureau regulation as MVPDs.\84\ We agree
that IPTV providers should be subject to the same regulatory fees as
cable providers.
---------------------------------------------------------------------------
\81\ FY 2008 FNPRM, 24 FCC Rcd at 6406-07, paras. 48-49. We
observed that ``[f]rom a customer's perspective, there is likely not
much difference between IPTV and other video services, such as cable
service.'' Id.
\82\ FY 2013 NPRM, 28 FCC Rcd at 7806, para. 37.
\83\ See, e.g., ACA Comments at 2-9 (``The Commission is correct
to assume that IPTV service providers should pay regulatory fees to
support video-related activities of the Commission''); see also ACA
Reply Comments at 1-6. But see Google Reply Comments at 2-3 (IPTV
regulatory fees should be less than what cable operators pay because
the Media Bureau has fewer responsibilities with regard to IPTV
providers than with cable operators). While we agree that the
services are not identical, and we are not categorizing IPTV as a
cable television service, we are not persuaded that the relatively
small difference from a regulatory perspective described by Google
would justify a different regulatory fee methodology and rate.
\84\ Some IPTV providers consider the service a ``cable
service'' and currently pay the same regulatory fees as cable
providers; others do not. ACA Comments at 7-8. MVPD, defined in
section 76.1000(e) of our rules, is ``an entity engaged in the
business of making available for purchase, by subscribers or
customers, multiple channels of video programming.'' 47 CFR
76.1000(e).
---------------------------------------------------------------------------
36. We intend to revisit the issue of whether DBS providers should
be included in this category; we are not including such additional
services at this time.\85\ Therefore, we adopt the proposal in the FY
2013 NPRM and broaden the cable television systems category to include
IPTV in the new category: ``cable television systems and Internet
Protocol TV service providers.'' This will continue to be calculated on
a per subscriber basis. In this new category we assess regulatory fees
on IPTV providers in the same manner as we assess fees on cable
television providers; we are not stating that IPTV providers are cable
television providers. As this is a ``permitted amendment,'' it will go
into effect for FY 2014.\86\
---------------------------------------------------------------------------
\85\ AT&T Comments at 4-5 (recommending a single MVPD fee
category that would include all MVPDs); NCTA Reply Comments at 2-5
(proposes including all MVPDs); ACA Comments at 13-18 (same);
DIRECTV Comments at 1-20 & Reply Comments at 2-10 (opposing
including DBS in a MVPD category); EchoStar and DISH Comments at 18-
20 & Reply Comments at 4-6 (same). This Report and Order does not
adopt a MVPD fee category.
\86\ 47 U.S.C. 159(b)(3).
---------------------------------------------------------------------------
3. Regulatory Fee Obligations for Digital Low Power, Class A, and TV
Translators/Booster
37. The digital transition to full-service television stations was
completed on June 12, 2009, but the digital transition for Low Power,
Class A, and TV Translators/Boosters still remains voluntary with a
transition date of September 1, 2015. In the context of regulatory
fees, we have historically considered the digital transition only with
respect to regulatory fees applicable to full-service television
stations, and not to Low Power, Class A, and TV Translators/Boosters.
Because the digital transition for these services is still voluntary,
some of these facilities may transition from analog to digital service
more rapidly than others. 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. Therefore, for regulatory fee purposes, we will assess
a fee for each facility operating either in an analog or digital mode.
In instances in which a licensee is simulcasting in both analog and
digital modes, a single regulatory fee will be assessed for the analog
facility and its corresponding digital component, but not for both
facilities. As greater numbers of facilities convert to digital mode,
the Commission will provide revised instructions on how regulatory fees
will be assessed.
4. Commercial Mobile Radio Service (CMRS) Messaging
38. CMRS Messaging Service, which replaced the CMRS One-Way Paging
fee category in 1997, includes all narrowband services.\87\ Initially,
the Commission froze the regulatory fee for this fee category at the FY
2002 level to provide relief to the paging industry by setting an
applicable rate of $0.08 per subscriber beginning in FY 2003.\88\ At
that time we noted that CMRS Messaging units had significantly declined
from 40.8 million in FY 1997 to 19.7 million in FY 2003--a decline of
51.7 percent.\89\ Commenters argued that this decline in subscribership
was not just a temporary phenomenon, but a lasting one. Commenters
further argued that, because the messaging industry is spectrum-
limited, geographically localized, and very cost sensitive, it is
difficult for this industry to pass on increases in costs to its
subscribers.\90\ In response to our FY 2013 NPRM, one commenter
supported maintaining the CMRS Messaging fee rate at $.08 per
subscriber, but urged the Commission to adopt an even lower fee rate in
the future, suggesting a ratio of 1 to 7 (messaging/paging monthly ARPU
to wireless telephony ARPU) to calculate the messaging regulatory fee
rate.\91\
---------------------------------------------------------------------------
\87\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 1997, Report and Order, 12 FCC Rcd 17161, 17184-85, para. 60
(1997) (FY 1997 Report and Order).
\88\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2003, Report and Order, 18 FCC Rcd 15985, 15992, para. 22
(2003) (FY 2003 Report and Order).
\89\ FY 2003 Report and Order, 18 FCC Rcd at 15992, para. 21.
The subscriber base in the paging industry declined 92 percent from
40.8 million to 3.2 million between FY 1997 and FY 2012, according
to FY 2012 collection data as of Sept. 30, 2012.
\90\ FY 2003 Report and Order, 18 FCC Rcd at 15992, para. 22.
\91\ See CMA Comments at 1, 3, and 5.
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39. The Commission has frozen the CMRS Messaging fee rate since FY
2003. By doing so, the Commission has provided the CMRS Messaging
industry some level of regulatory fee stability. As our earlier
discussion on FTE allocation has indicated, the fee burden of
regulatory fee categories is determined by FTEs, and not by comparative
ARPUs or other forms of measurement. By maintaining the CMRS Messaging
rate at $.08 per subscriber for a decade, the CMRS Messaging industry
has in effect been paying a fee rate of .07 percent (.0007) of all
fees, compared to its allocated share of .32 percent (.0032).\92\ As in
previous years, the Commission in FY 2013 will maintain the CMRS
Messaging fee rate at $.08 per subscriber. The Commission, however,
will continue to examine the impact of regulatory fees on CMRS
Messaging and similar declining industries.
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\92\ If the fee rate were not frozen at $.08 per subscriber, the
actual fee rate for the CMRS Messaging fee category would have been
$.39 per subscriber, thereby raising $1,170,000 in projected
revenues (.34% of all fees) compared with $240,000 in projected
revenues (.07%).
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E. Excess Fees
40. Commenters recommend that the Commission obtain Congressional
approval to refund excess regulatory fees or alternatively apply the
excess fees to FY 2014 collections.\93\ The Commission's annual
appropriations, since 2008, have prohibited the use of any excess fees
from current or previous fees without an appropriation from Congress.
Should Congress decide to examine this issue or any other issues
regarding regulatory fees, the Commission is committed to providing
whatever information they request.\94\
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\93\ See, e.g., USTA Comments at 8-9; Verizon Reply Comments at
1-2; SIA Reply Comments at 10.
\94\ See GAO Report at pp. 44-45.
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F. Fee Decisions and Waiver Policies
41. The Commission received two unsolicited comments regarding its
fee decisions and waiver policies. MMTC urges the Commission ``to waive
application fees for small businesses and nonprofits and to provide
[[Page 52445]]
regulatory fee relief for certain broadcast entities.'' \95\ In
addition, MMTC explains that the Commission has the authority to
``waive, reduce, or defer payment of a fee in any specific instance of
good cause shown, where such action would promote the public
interest.'' \96\ MMTC contends that the Commission should adopt a
rebuttable presumption that a certain class of entities need, and are
eligible, for regulatory fee relief.\97\ MMTC also urges the Commission
to exercise its statutory authority and grant a one-year waiver of
certain application fees.\98\
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\95\ MMTC Comments at 1.
\96\ MMTC Comments at 4.
\97\ MMTC Comments at 4-5.
\98\ MMTC Comments at 5.
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42. The issues raised by MMTC relating to application fees are
beyond the scope of this proceeding. We emphasize that all waivers,
including a reduction and deferral of fees, are considered on a case-
by-case basis under the statute. These include instances in which
financial hardship is presented, as well as instances in which the
public interest will be promoted. The Commission can exercise some
discretion in providing relief on waivers, but this relief can only be
provided within the confines of the statutory law that governs that
particular waiver.
43. The Commission also received a comment requesting the
Commission publish redacted financial data from fee decisions.\99\
Fireweed also contends that the Commission has hidden decisions from
public view.\100\ The Commission intends to consider this issue as it
reviews its current policy of publishing fee decisions. However, the
publishing of fee decisions, including redacted financial data, must
adhere to the Commission's privacy rules and guidelines.
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\99\ Fireweed Comments at 6.
\100\ Fireweed Comments at 7.
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44. Fireweed also contends that we should not require parties to
support a waiver request with tax returns.\101\ Fireweed has not,
however, suggested an alternative method to substantiate financial
hardship. Tax returns or audited financial statements are generally
used by parties before the Commission to demonstrate financial
hardship.
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\101\ Fireweed Comments at 8.
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G. Administrative Issues
45. In FY 2009, the Commission implemented several procedural
changes that simplified the payment and reconciliation processes for FY
2009 regulatory fees. The Commission's current regulatory fee
collection procedures can be found in the Report and Order on
Assessment and Collection of Regulatory Fees for FY 2012.\102\ In FY
2013, the Commission will continue to promote greater use of technology
(and less use of paper) in improving our regulatory fee notification
and collection process. These changes and their effective dates are
discussed in more detail below. Specifically, beginning on October 1,
2013, in FY 2014, we will no longer accept checks and hardcopy Form 159
remittance advice forms to pay regulatory fee obligations. In FY 2014,
we will also transfer electronic invoicing and receivables collection
to the Treasury. Finally, in FY 2014, we will no longer mail out
initial CMRS assessments, and will instead require licensees to log
into the Commission's Web site to view and revise their subscriber
counts.
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\102\ See Assessment and Collection of Regulatory Fees for
Fiscal Year 2012, Report and Order, 27 FCC Rcd 8390, 8395-97, paras.
17-20, 24-26 (2012) (FY 2012 Report and Order).
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1. Discontinuation of Mail Outs of Initial CMRS Assessments, FY 2014
46. In FY 2014, as part of the Commission's effort to become more
``paperless,'' the Commission will no longer mail out its initial CMRS
assessments but will require licensees to log into the Commission's Web
site to view and revise their subscriber counts. A system currently
exists for providers to revise their CMRS subscriber counts
electronically after the CMRS assessments are mailed, and it is
possible that this system can be expanded to include letters that can
be downloaded to serve as the initial CMRS assessment letter. The
Commission will provide more details in future announcements as this
system is modified to accommodate this task.
2. Discontinuation of Paper and Check Transactions Beginning October 1,
2013 (FY 2014)
47. Together with the U.S. Department of Treasury, the Commission
is taking further steps to meet the OMB Open Government Directive.\103\
A component part of the Treasury's current flagship initiative pursuant
to this Directive is moving to a paperless Treasury, which includes
related activities in both disbursing and collecting select federal
government payments and receipts.\104\ Going paperless is expected to
produce cost savings, reduce errors, and improve efficiencies across
government. Accordingly, beginning on October 1, 2013, the Commission
will no longer accept checks (including cashier's checks) and the
accompanying hardcopy forms (e.g., Form 159's, Form 159-B's, Form 159-
E's, Form 159-W's) for the payment of regulatory fees. This new
paperless procedure will require that all payments be made by online
ACH payment, online credit card, or wire transfer. Any other form of
payment (e.g., checks) will be rejected and sent back to the payor. So
that the Commission can associate the wire payment with the correct
regulatory fee information, an accompanying Form 159-E should still be
transmitted via fax for wire transfers. This change will affect all
payments of regulatory fees made on or after October 1, 2013.\105\
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\103\ Office of Management and Budget (OMB) Memorandum M-10-06,
Open Government Directive, Dec. 8, 2009; see also https://www.whitehouse.gov/the-press-office/2011/06/13/executive-order-13576-delivering-efficient-effective-and-accountable-gov.
\104\ See U.S. Department of the Treasury, Open Government Plan
2.1, Sept. 2012.
\105\ Payors should note that this change will mean that to the
extent certain entities have to date paid both regulatory fees and
application fees at the same time via paper check, they will no
longer be able to do so as the regulatory fees payment via paper
check will no longer be accepted.
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3. Transfers to Treasury, FY 2014
48. Under section 9 of the Act, Commission rules, and the debt
collection laws, a licensee's regulatory fee is due on the first day of
the fiscal year and payable at a date established by our annual
regulatory fee Report and Order. The Commission will work with Treasury
to facilitate end-to-end billing and collections capabilities for our
receivables in the pre-delinquency stage. Under these revised
procedures, the Commission will begin transferring appropriate
receivables (unpaid regulatory fees) to Treasury at the end of the
payment period instead of waiting for a period of 180 days from the
date of delinquency to transfer a delinquent debt to Treasury for
further collection action.\106\ Accordingly, we anticipate that the
transfer of FY 2013 debts to Treasury will occur much sooner than our
current process. Regulatees, however, will not likely see any
substantial change in the current procedures of how past due debts are
to be paid. The Commission expects to modify its guidance and amend its
rules accordingly.
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\106\ See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR 1.1917.
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[[Page 52446]]
V. Procedural Matters
A. Assessment Notifications
1. CMRS Cellular and Mobile Services Assessments
49. For regulatory fee collection in FY 2013, 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'').\107\ The letter will include a
listing of the carrier's Operating Company Numbers (OCNs) upon which
the assessment is based.\108\ The letters will not include OCNs with
their respective assigned number counts, but rather, an aggregate total
of assigned numbers for each carrier.
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\107\ See Assessment and Collection of Regulatory Fees for
Fiscal Year 2005 and Assessment and Collection of Regulatory Fees
for Fiscal Year 2004, MD Docket Nos. 05-59 and 04-73, Report and
Order and Order on Reconsideration, 20 FCC Rcd 12259, 12264, paras.
38-44 (2005).
\108\ Id.
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50. 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.\109\ 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.
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\109\ In the supporting documentation, the provider will need to
state a reason for the change, such as a purchase or sale of a
subsidiary, the date of the transaction, and any other pertinent
information that will help to justify a reason for the change.
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51. 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 that is
currently in place for CMRS Wireless services (i.e., compute their
subscriber counts as of December 31, 2012), 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.
B. Payment of Regulatory Fees
1. Lock Box Bank
52. All lock box payments to the Commission for FY 2013 will be
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC.
During the fee season for collecting FY 2013 regulatory fees,
regulatees can pay their fees by credit card through Pay.gov,\110\ by
check, money order, or debit card,\111\ 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.
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\110\ 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.
\111\ 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.
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2. Receiving Bank for Wire Payments
53. 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
54. Regulatees whose total FY 2013 regulatory fee liability,
including all categories of fees for which payment is due, is less than
$10 are exempted from payment of FY 2013 regulatory fees.
4. Two Additional Fee Categories Will Be Established as Bills in FY
2013
55. Presently, the Commission establishes bills for a select group
of regulatory fee categories: ITSPs, Geostationary (GSO) and Non-
Geostationary (NGSO) satellite space station licensees,\112\ holders of
Cable Television Relay Service (CARS) licenses, and Earth Station
licensees.\113\ In FY 2009, the Commission stopped sending hardcopy
bills to licensees, and made them electronically available in Fee
Filer, the Commission's electronic filing and payment system. During
the FY 2013 regulatory fee collection period, the Commission will
expand its number of billing categories to include BRS/LMDS and
Television Stations. There will be no change in the procedures of how
BRS/LMDS and television station licensees view and pay their regulatory
fees. The only noticeable difference will be that a bill number will be
associated with each record for the BRS/LMDS and television station fee
categories. This bill number will enable the Commission to
[[Page 52447]]
determine more quickly those entities that have not paid their FY 2013
regulatory fees. This initiative is part of the Commission's effort to
streamline and expedite the process of regulatory fee collection and
accounting.
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\112\ 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.
\113\ A bill is considered an account receivable in the
Commission's accounting system. Bills reflect the amount owed and
have a payment due date of the last day of the regulatory fee
payment window. Consequently, if a bill is not paid by the due date,
it becomes delinquent and is subject to our debt collection
procedures. See also 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
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5. Standard Fee Calculations and Payment Dates
56. 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, 2012 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, 2012. In
instances where a permit or license is transferred or assigned after
October 1, 2012, 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,
2012. In instances where a permit or license is transferred or assigned
after October 1, 2012, responsibility for payment rests with the holder
of the permit or license as of the fee due date. Audio bridging service
providers are included in this category.\114\
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\114\ Audio bridging services are toll teleconferencing
services.
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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, 2012. The number of subscribers, units,
or telephone numbers on December 31, 2012 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, 2012,
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 3 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 2013.
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,
2012.\115\ Regulatory fees also must be paid for CARS licenses that
were granted on or before October 1, 2012. In instances where a permit
or license is transferred or assigned after October 1, 2012,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
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\115\ 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 2012, rather than on a count as of December 31,
2012.
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International Services: Regulatory fees must be paid for
earth stations, geostationary orbit space stations, and non-
geostationary orbit satellite systems that were licensed and
operational on or before October 1, 2012. In instances where a permit
or license is transferred or assigned after October 1, 2012,
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, 2012. In instances where a license is transferred or assigned after
October 1, 2012, responsibility for payment rests with the holder of
the license as of the fee due date. For regulatory fee purposes, the
allocation in FY 2013 will remain at 87.6 percent for submarine cable
and 12.4 percent for satellite/terrestrial facilities.
International Services: Terrestrial and Satellite
Services: Regulatory fees for 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, 2012 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, 2012. Whether circuits are used 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, 2012, 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 2013 will remain at 87.6 percent for
submarine cable and 12.4 percent for satellite/terrestrial facilities.
C. Enforcement
57. 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.\116\ Failure
to pay regulatory fees and/or any late penalty will subject regulatees
to sanctions, including those set forth in section 1.1910 of the
Commission's rules \117\ and in the Debt Collection Improvement Act of
1996 (DCIA).\118\ We also assess administrative processing charges on
delinquent debts to recover additional costs incurred in processing and
handling the related debt pursuant to the DCIA and section 1.1940(d) of
the Commission's rules.\119\ 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.
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\116\ 47 U.S.C. 159(c).
\117\ See 47 CFR 1.1910.
\118\ 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.
\119\ 47 CFR 1.1940(d).
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[[Page 52448]]
58. 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.\120\ 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).
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\120\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
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59. As a final matter, we note that providing a 30 day period after
Federal Register publication before this Report and Order becomes
effective as required by 5 U.S.C. 553(d) will not allow sufficient time
for the Commission to collect the FY 2013 fees before the end of FY
2013 on September 30, 2013. For this reason, pursuant to 5 U.S.C.
553(d)(3) the Commission finds there is good cause to waive the
requirements of Section 553(d), and this Report and Order will become
effective upon publication in the Federal Register. Because payments of
the regulatory fees will not actually be due until the middle of
September persons affected by this Order will still have a reasonable
period in which to prepare to make their payments and thereby comply
with the rules established herein.
VI. Conclusion
60. In this Report and Order we reallocate regulatory fees to more
accurately reflect the subject areas worked on by current Commission
FTEs for FY 2013. We consider this our first step toward reforming the
regulatory fee process and will continue to refine our regulatory fee
methodology to achieve equitable results that are consistent with
section 9 of the Act.
Table 5--Factors, Measurements, and Calculations That Determines
Station Signal Contours and Associated Population Coverages
AM Stations
61. For stations with nondirectional daytime antennas, the
theoretical radiation was used at all azimuths. For stations with
directional daytime antennas, specific information on each day tower,
including field ratio, phase, spacing, and orientation was retrieved,
as well as the theoretical pattern 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 augmented
standard if pertinent, horizontal plane radiation pattern was
calculated using techniques and methods specified in sections 73.150
and 73.152 of the Commission's rules.\121\ 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.\122\ Using the
calculated horizontal radiation values, and the retrieved soil
conductivity data, the distance to the principal community (5 mV/m)
contour was predicted for each of the 360 radials. The resulting
distance to principal community contours were used to form a
geographical polygon. Population counting was accomplished by
determining which 2010 block centroids were contained in the polygon.
(A block centroid is the center point of a small area containing
population as computed by the U.S. Census Bureau.) The sum of the
population figures for all enclosed blocks represents the total
population for the predicted principal community coverage area.
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\121\ 47 CFR 73.150 and 73.152.
\122\ See Map of Estimated Effective Ground Conductivity in the
United States, 47 CFR 73.190 Figure R3.
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FM Stations
62. 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.\123\ 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.
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\123\ 47 CFR 73.313
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Table 6--FY 2012 Schedule of Regulatory Fees
The first eleven regulatory fee categories in the table 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.
Fee category $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 35
CFR part 90).
Microwave (per license) (47 CFR part 20
101).
218-219 MHz (Formerly Interactive Video 70
Data Service) (per license) (47 CFR
part 95).
Marine (Ship) (per station) (47 CFR 10
part 80).
Marine (Coast) (per license) (47 CFR 50
part 80).
General Mobile Radio Service (per 5
license) (47 CFR part 95).
Rural Radio (47 CFR part 22) 15
(previously listed under the Land
Mobile category).
PLMRS (Shared Use) (per license) (47 15
CFR part 90).
Aviation (Aircraft) (per station) (47 10
CFR part 87).
Aviation (Ground) (per license) (47 CFR 15
part 87).
Amateur Vanity Call Signs (per call 1.50
sign) (47 CFR part 97).
CMRS Mobile/Cellular Services (per .17
unit) (47 CFR parts 20, 22, 24, 27, 80
and 90).
CMRS Messaging Services (per unit) (47 .08
CFR parts 20, 22, 24 and 90).
Broadband Radio Service (formerly MMDS/ 475
MDS) (per license) (47 CFR part 27).
Local Multipoint Distribution Service 475
(per call sign) (47 CFR, part 101).
AM Radio Construction Permits.......... 550
[[Page 52449]]
FM Radio Construction Permits.......... 700
TV (47 CFR part 73) VHF Commercial:
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 1,425
Markets).
Construction Permits--Satellite 895
Television Stations.
Low Power TV, Class A TV, TV/FM 385
Translators & Boosters (47 CFR part
74).
Broadcast Auxiliaries (47 CFR part 74). 10
CARS (47 CFR part 78).................. 475
Cable Television Systems (per .95
subscriber) (47 CFR part 76).
Interstate Telecommunication Service .00375
Providers (per revenue dollar).
Earth Stations (47 CFR part 25)........ 275
Space Stations (per operational station 132,875
in geostationary orbit) (47 CFR part
25) also includes DBS Service (per
operational station) (47 CFR part 100).
Space Stations (per operational system 143,150
in non-geostationary orbit) (47 CFR
part 25).
International Bearer Circuits-- .26
Terrestrial/Satellites (per 64KB
circuit).
International Bearer Circuits-- See Table Below
Submarine Cable.
------------------------------------------------------------------------
FY 2012 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
FM FM
AM Class AM Class AM Class AM Class Classes Classes
Population served A B C D A, B1 & B, C, C0,
C3 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,
than 5 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
5 Gbps or greater, but less 53,200 FCC, International,
than 10 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
10 Gbps or greater, but less 106,375 FCC, International,
than 20 Gbps. P.O. Box 979084, St.
Louis, MO 63197-9000.
20 Gbps or greater............. 212,750 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-9000.
------------------------------------------------------------------------
Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\124\ an Initial Regulatory Flexibility Analysis (IRFA)
was included in the FY 2013 NPRM. The Commission sought written public
comment on the proposals in the FY 2013 NPRM, including comment on the
IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms to the
IRFA.\125\
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\124\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended
by the Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
\125\ 5 U.S.C. 604.
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A. Need for, and Objectives of, the Report and Order
2. In this Report and Order, we conclude the Assessment and
Collection of Regulatory Fees for Fiscal Year (FY) 2013 proceeding to
collect $339,844,000 in regulatory fees for FY 2013, pursuant to
Section 9 of the Communications
[[Page 52450]]
Act \126\ and the FY 2013 Continuing Appropriations Resolution.\127\
These regulatory fees will be due in September 2013. Under section 9 of
the Communications Act, regulatory fees are mandated by Congress and
collected to recover the regulatory costs associated with the
Commission's enforcement, policy and rulemaking, user information, and
international activities.\128\ In the FY 2013 NPRM we sought comment on
our annual process of assessing regulatory fees to cover the
Commission's costs to offset the Commission's FY 2013 appropriation, as
directed by Congress. We also sought comment in the FY 2013 NPRM on
reforming and revising our regulatory fee schedule for FY 2013 and
beyond to take into account changes in the communications industry and
changes in the Commission's regulatory processes and staffing in recent
years.
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\126\ 47 U.S.C. 159(a).
\127\ In FY 2013, the Consolidated and Further Continuing
Appropriations Act, Public Law 113-6 (2013) at Division F authorizes
the Commission to collect offsetting regulatory fees at the level
provided to the Commission's FY 2012 appropriation of $339,844.00.
See Financial Services and General Government Appropriations Act,
2012, Division C of Public Law 112-74, 125 Stat. 108-9 (2011).
\128\ 47 U.S.C. 159(a).
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3. The FY 2013 NPRM sought comment on, among other things,
reallocating: (1) Direct FTEs \129\ currently allocated to the
Interstate Telecommunications Service Providers (ITSPs) fee category
and other fee categories to reflect current workloads devoted to these
subject areas; and (2) FTEs in the International Bureau to more
accurately reflect the Commission's regulation and oversight of the
International Bureau regulatees, because many of the International
Bureau FTEs devote their time on issues international in nature, but
not necessarily pertaining to the International Bureau regulatees. The
Report and Order adopts these proposals, together with a limit on any
increase in assessments to 7.5 percent to avoid fee shock to industry
segments paying higher regulatory fees as a result of reallocation. In
addition, for FY 2014, the Report and Order adds Internet Protocol TV
(IPTV) to the cable television category because by assessing regulatory
fees on cable television systems but not on IPTV, we may place cable
providers at a competitive disadvantage. The Report and Order also
combines UHF and VHF fee categories, also for FY 2014, because after
the digital conversion there was no longer a basis in which to assess a
higher regulatory fee on VHF channels.
---------------------------------------------------------------------------
\129\ One FTE, typically called a ``Full Time Equivalent,'' is a
unit of measure equal to the work performed annually by a full time
person (working a 40 hour workweek for a full year) assigned to the
particular job, and subject to agency personnel staffing limitations
established by the U.S. Office of Management and Budget. Any
reference to FTE or ``Full Time Employee'' used herein refers to
such Full Time Equivalent.
---------------------------------------------------------------------------
4. The Report and Order also clarifies that licensees of Digital
Low Power, Class A, and TV Translators/Boosters should pay only one
regulatory fee on their analog or digital station, but not both. During
the transition from analog to digital, 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. Therefore,
for regulatory fee purposes, the Commission will assess a fee for each
facility operating either in an analog or digital mode. In instances in
which a licensee is simulcasting in both analog and digital modes, a
single regulatory fee will be assessed for the analog facility and its
corresponding digital component, but not for both facilities. In
addition, the Report and Order announces that effective in FY 2014 all
regulatory fee payments must be made electronically. The Report and
Order also states that beginning in FY 2014 the Commission will no
longer mail out initial regulatory fee assessments to CMRS licensees.
Finally, the Commission will refer to the Department of the Treasury
end-to-end billing and collection beginning in FY 2014.
B. Summary of the Significant Issues Raised by the Public Comments in
Response to the IRFA
5. Fireweed Communications and Jeremy Lansman filed joint comments
to the IRFA. They contend that the proposals in the FY 2013 NPRM
greatly increase the reporting burden on small broadcasting entities
requesting a fee waiver.\130\ They also contend that the IRFA does not
describe significant alternatives to the proposed rules or exemptions
for small entities.\131\ The Schedule of Regulatory Fees to be paid by
radio and television broadcasters, which appears at 47 CFR 1153, takes
into account the size of the market and/or size of the population
served by the various classes of television and radio stations. Thus,
consideration for smaller stations is already built in to the
Commission's regulatory fee structure. Any station experiencing
financial hardship from the fee increase adopted today can file for a
waiver pursuant to 47 CFR 1.116. This Report and Order makes no change
in the fee waiver procedure for any entities seeking a waiver. We have
not proposed any changes in our regulatory fee process for small
entities. We have not increased the reporting burden on small entities
in this proceeding. These commenters appear to be seeking a change in
the waiver process, which is outside the scope of this proceeding.
---------------------------------------------------------------------------
\130\ Comments of Fireweed Communications and Jeremy Landsman at
2.
\131\ Id.
---------------------------------------------------------------------------
C. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply
6. 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.\132\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \133\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\134\ 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.\135\ Nationwide, there are a total of
approximately 27.9 million small businesses, according to the SBA.\136\
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\132\ 5 U.S.C. 603(b)(3).
\133\ 5 U.S.C. 601(6).
\134\ 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.''
\135\ 15 U.S.C. 632.
\136\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' https://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf.
---------------------------------------------------------------------------
8. Wired Telecommunications Carriers. The SBA has developed a small
business size standard for Wired Telecommunications Carriers, which
consists of all such companies having 1,500 or fewer employees. Census
data for 2007 shows that there were 31,996 establishments that operated
that year. Of those 31,996, 1,818 operated with more than 100
employees, and 30,178 operated with fewer than 100 employees.\137\
Thus, under this size standard, the majority of firms can be considered
small.
---------------------------------------------------------------------------
\137\ See id.
---------------------------------------------------------------------------
9. Local Exchange Carriers (LECs). Neither the Commission nor the
SBA
[[Page 52451]]
has developed a size standard for small businesses specifically
applicable to local exchange services. The closest applicable size
standard under SBA rules is for Wired Telecommunications Carriers.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\138\ According to Commission data, census data for
2007 shows that there were 31,996 establishments that operated that
year. Of those 31,996, 1,818 operated with more than 100 employees, and
30,178 operated with fewer than 100 employees.\139\ 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
FY 2013 NPRM.
---------------------------------------------------------------------------
\138\ 13 CFR 121.201, NAICS code 517110.
\139\ See id.
---------------------------------------------------------------------------
10. Incumbent LECs. Neither the Commission nor the SBA has
developed a small business size standard specifically for incumbent
local exchange services. The closest applicable 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.\140\ According to Commission data, 1,307 carriers reported
that they were incumbent local exchange service providers.\141\ Of
these 1,307 carriers, an estimated 1,006 have 1,500 or fewer employees
and 301 have more than 1,500 employees.\142\ Consequently, the
Commission estimates that most providers of incumbent local exchange
service are small businesses that may be affected by the rules and
policies proposed in the FY 2013 NPRM.
---------------------------------------------------------------------------
\140\ 13 CFR 121.201, NAICS code 517110.
\141\ 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).
\142\ Id.
---------------------------------------------------------------------------
11. 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.\143\ 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.\144\ Of
these 1,442 carriers, an estimated 1,256 have 1,500 or fewer employees
and 186 have more than 1,500 employees.\145\ 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.\146\ In addition, 72
carriers have reported that they are Other Local Service
Providers.\147\ Of the 72, seventy have 1,500 or fewer employees and
two have more than 1,500 employees.\148\ 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 proposals in this FY 2013 NPRM.
---------------------------------------------------------------------------
\143\ 13 CFR 121.201, NAICS code 517110.
\144\ See Trends in Telephone Service, at tbl. 5.3.
\145\ Id.
\146\ Id.
\147\ Id.
\148\ Id.
---------------------------------------------------------------------------
12. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA has developed a small business size standard specifically
applicable to interexchange services. The applicable size standard
under SBA rules is for the Wired Telecommunications Carriers. Under
that size standard, such a business is small if it has 1,500 or fewer
employees.\149\ According to Commission data, 359 companies reported
that their primary telecommunications service activity was the
provision of interexchange services.\150\ Of these 359 companies, an
estimated 317 have 1,500 or fewer employees and 42 have more than 1,500
employees.\151\ Consequently, the Commission estimates that the
majority of interexchange service providers are small entities that may
be affected by rules adopted pursuant to the FY 2013 NPRM.
---------------------------------------------------------------------------
\149\ 13 CFR 121.201, NAICS code 517110.
\150\ See Trends in Telephone Service, at tbl. 5.3.
\151\ Id.
---------------------------------------------------------------------------
13. 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.\152\ Census data for 2007 show that 1,716 establishments
provided resale services during that year. Of that number, 1,674
operated with fewer than 99 employees and 42 operated with more than
100 employees.\153\ 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.\154\ Of these, all 193 have 1,500 or fewer
employees and none have more than 1,500 employees.\155\ 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 FY 2013 NPRM.
---------------------------------------------------------------------------
\152\ 13 CFR 121.201, NAICS code 517911.
\153\ https://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ2&prodType=table.
\154\ See Trends in Telephone Service, at tbl. 5.3.
\155\ Id.
---------------------------------------------------------------------------
14. 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.\156\ Census data for 2007 show that 1,716 establishments
provided resale services during that year. Of that number, 1,674
operated with fewer than 99 employees and 42 operated with more than
100 employees.\157\ 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.\158\ Of these, an estimated 211 have 1,500 or fewer employees
and two have more than 1,500 employees.\159\ Consequently, the
Commission estimates that the majority of local resellers are small
entities that may be affected by rules adopted pursuant to the
proposals in this FY 2013 NPRM.
---------------------------------------------------------------------------
\156\ 13 CFR 121.201, NAICS code 517911.
\157\ https://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ2&prodType=table.
\158\ See Trends in Telephone Service, at tbl. 5.3.
\159\ Id.
---------------------------------------------------------------------------
15. 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.\160\ Census data for 2007 show that 1,716 establishments
provided resale services during that year. Of that number, 1,674
operated with fewer than 99 employees and 42 operated with more than
100
[[Page 52452]]
employees.\161\ Thus, under this category and the associated small
business size standard, the majority of these resellers can be
considered small entities. According to Commission data, 881 carriers
have reported that they are engaged in the provision of toll resale
services.\162\ Of these, an estimated 857 have 1,500 or fewer employees
and 24 have more than 1,500 employees.\163\ Consequently, the
Commission estimates that the majority of toll resellers are small
entities that may be affected by our proposals in the FY 2013 NPRM.
---------------------------------------------------------------------------
\160\ 13 CFR 121.201, NAICS code 517911.
\161\ https://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ2&prodType=table.
\162\ Trends in Telephone Service, at tbl. 5.3.
\163\ Id.
---------------------------------------------------------------------------
16. Other Toll Carriers. Neither the Commission nor the SBA has
developed a size standard for small businesses specifically applicable
to Other Toll Carriers. This category includes toll carriers that do
not fall within the categories of interexchange carriers, operator
service providers, prepaid calling card providers, satellite service
carriers, or toll resellers. The closest applicable size standard under
SBA rules is for Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer
employees.\164\ Census data for 2007 shows that there were 31,996
establishments that operated that year. Of those 31,996, 1,818 operated
with more than 100 employees, and 30,178 operated with fewer than 100
employees.\165\ Thus, under this category and the associated small
business size standard, the majority of Other Toll Carriers can be
considered small. According to Commission data, 284 companies reported
that their primary telecommunications service activity was the
provision of other toll carriage.\166\ Of these, an estimated 279 have
1,500 or fewer employees and five have more than 1,500 employees.\167\
Consequently, the Commission estimates that most Other Toll Carriers
are small entities that may be affected by the rules and policies
adopted pursuant to the FY 2013 NPRM.
---------------------------------------------------------------------------
\164\ 13 CFR 121.201, NAICS code 517110.
\165\ Id.
\166\ Trends in Telephone Service, at tbl. 5.3.
\167\ Id.
---------------------------------------------------------------------------
17. Wireless Telecommunications Carriers (except Satellite). Since
2007, the SBA has recognized wireless firms within this new, broad,
economic census category.\168\ Prior to that time, such firms were
within the now-superseded categories of Paging and Cellular and Other
Wireless Telecommunications.\169\ Under the present and prior
categories, the SBA has deemed a wireless business to be small if it
has 1,500 or fewer employees.\170\ For this category, census data for
2007 show that there were 11,163 establishments that operated for the
entire year.\171\ Of this total, 10,791 establishments had employment
of 999 or fewer employees and 372 had employment of 1000 employees or
more.\172\ Thus, under this category and the associated small business
size standard, the Commission estimates that the majority of wireless
telecommunications carriers (except satellite) are small entities that
may be affected by our proposed action.
---------------------------------------------------------------------------
\168\ 13 CFR 121.201, NAICS code 517210.
\169\ U.S. Census Bureau, 2002 NAICS Definitions, ``517211
Paging,'' available at https://www.census.gov/cgibin/sssd/naics/naicsrch?code=517211&search=2002%20NAICS%20Search; U.S. Census
Bureau, 2002 NAICS Definitions, ``517212 Cellular and Other Wireless
Telecommunications,'' available at https://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517212&search=2002%20NAICS%20Search.
\170\ 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).
\171\ 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).
\172\ 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.''
---------------------------------------------------------------------------
18. 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.\173\ Of these, an
estimated 261 have 1,500 or fewer employees and 152 have more than
1,500 employees.\174\ 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.
---------------------------------------------------------------------------
\173\ Trends in Telephone Service, at tbl. 5.3.
\174\ Id.
---------------------------------------------------------------------------
19. Cable Television and other Program Distribution. 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.'' \175\ The SBA has developed a small
business size standard for this category, which is: all such firms
having 1,500 or fewer employees.\176\ Census data for 2007 shows that
there were 31,996 establishments that operated that year. Of those
31,996, 1,818 had more than 100 employees, and 30,178 operated with
fewer than 100 employees. Thus under this size standard, the majority
of firms offering cable and other program distribution services can be
considered small and may be affected by rules adopted pursuant to the
FY 2013 NPRM.
---------------------------------------------------------------------------
\175\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition), available at
https://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517110&search=2007%20NAICS%20Search.
\176\ 13 CFR 121.201, NAICS code 517110.
---------------------------------------------------------------------------
20. Cable Companies and Systems. The Commission has developed its
own small business size standards, for the purpose of cable rate
regulation. Under the Commission's rules, a ``small cable company'' is
one serving 400,000 or fewer subscribers, nationwide.\177\ Industry
data indicate that, of 1,076 cable operators nationwide, all but eleven
are small under this size standard.\178\ In addition, under the
Commission's rules, a ``small system'' is a cable system serving 15,000
or fewer subscribers.\179\ 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.\180\ Thus, under
this second size standard, most cable systems are small and may be
affected by rules adopted pursuant to the FY 2013 NPRM.
---------------------------------------------------------------------------
\177\ See 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. See Implementation of Sections
of the 1992 Cable Television Consumer Protection and Competition
Act: Rate Regulation, MM Docket Nos. 92-266, 93-215, Sixth Report
and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393,
7408, para. 28 (1995).
\178\ 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.
\179\ See 47 CFR 76.901(c).
\180\ WARREN COMMUNICATIONS NEWS, TELEVISION & CABLE FACTBOOK
2006, ``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.
---------------------------------------------------------------------------
21. All Other Telecommunications. The Census Bureau defines this
industry as including ``establishments primarily engaged in providing
specialized
[[Page 52453]]
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.'' \181\ The SBA has
developed a small business size standard for this category; that size
standard is $30.0 million or less in average annual receipts.\182\
According to Census Bureau data for 2007, there were 2,623 firms in
this category that operated for the entire year.\183\ Of these, 2478
establishments had annual receipts of under $10 million and 145
establishments had annual receipts of $10 million or more.\184\
Consequently, we estimate that the majority of these firms are small
entities that may be affected by our action. In addition, some small
businesses whose primary line of business does not involve provision of
communications services hold FCC licenses or other authorizations for
purposes incidental to their primary business. We do not have a
reliable estimate of how many of these entities are small businesses.
---------------------------------------------------------------------------
\181\ U.S. Census Bureau, ``2007 NAICS Definitions: 517919 All
Other Telecommunications,'' available at https://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517919&search=2007%20NAICS%20Search.
\182\ 13 CFR 121.201, NAICS code 517919.
\183\ U.S. Census Bureau, 2007 Economic Census, Subject Series:
Information, Table 4, ``Establishment and Firm Size: Receipts Size
of Firms for the United States: 2007 NAICS Code 517919'' (issued
Nov. 2010).
\184\ Id.
---------------------------------------------------------------------------
D. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
22. This Report and Order does not adopt any new reporting,
recordkeeping, or other compliance requirements.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
23. 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.\185\
---------------------------------------------------------------------------
\185\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------
24. This Report and Order does not adopt any new reporting
requirements. Therefore no adverse economic impact on small entities
will be sustained based on reporting requirements. There may be a
regulatory fee increase on small entities, in some cases and in some
industries, but if so it would be specifically in furtherance of the
reform measures proposed in the Notice to better align regulatory fees
with Commission FTEs in core bureaus, as required under section 9 of
the Act. We are mitigating fee increases to small entities, and other
entities, by, for example, limiting or capping the annual increase in
regulatory fees to 7.5 percent. Absent a cap, the cable fee would
increase approximately an additional 15 percent. In keeping with the
requirements of the Regulatory Flexibility Act, in paragraphs 10 to 28
of this Report and Order, we have considered certain alternative means
of mitigating the effects of fee increases to a particular industry
segment. In addition, the Commission's rules provide a process by which
regulatory fee payors may seek waivers or other relief on the basis of
financial hardship. 47 CFR 1.1166
F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
26. None.
VII. Ordering Clauses
63. 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.
64. It is further ordered that, as provided in paragraph 59, this
Report and Order shall be effective upon publication in the Federal
Register.
65. 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, to the Chief Counsel for Advocacy of the U.S.
Small Business Administration.
List of Subjects in 47 CFR Part 1
Practice and procedure.
Federal Communications Commission.
Gloria J. Miles,
Federal Register Liaison.
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, and 310. Cable Landing License Act of
1921, 47 U.S.C. 35-39, and the Middle Class Tax Relief and Job
Creation Act of 2012, Public Law 112-96.
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 $40.00 FCC, P.O. Box 979097,
601 & 159). St. Louis, MO 63197-
9000.
(b) New, Renew/Mod 40.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
(c) Renewal Only (FCC 601 40.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(d) Renewal Only 40.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
220 MHz Nationwide (a) 40.00 FCC, P.O. Box 979097,
New, Renew/Mod (FCC 601 St. Louis, MO 63197-
& 159). 9000.
(b) New, Renew/Mod 40.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
[[Page 52454]]
(c) Renewal Only (FCC 601 40.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(d) Renewal Only 40.00 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 20.00 FCC, P.O. Box 979097,
601 & 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 75.00 FCC, P.O. Box 979097,
601 & 159). St. Louis, MO 63197-
9000.
(b) New, Renew/Mod 75.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
(c) Renewal Only (FCC 601 75.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(d) Renewal Only 75.00 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 15.00 FCC, P.O. Box 979097,
601 & 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 5.00 FCC, P.O. Box 979097,
605 & 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/ St. Louis, MO, 63197-
Mod (Electronic Filing) 9000
(FCC 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 55.00 FCC, P.O. Box 979097,
601 & 159). St. Louis, MO 63197-
9000.
(b) New, Renewal/Mod 55.00 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
601 & 159). 9000.
(c) Renewal Only (FCC 601 55.00 FCC, P.O. Box 979097,
& 159). St. Louis, MO 63197-
9000.
(d) Renewal Only 55.00 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.
(d) Renewal Only 15.00 FCC, P.O. Box 979097,
(Electronic Only) (FCC St. Louis, MO 63197-
601 & 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 10.00 FCC, P.O. Box 979097,
605 & 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 1.61 FCC, P.O. Box 979097,
605 & 159). St. Louis, MO 63197-
9000.
(b) Initial or Renew 1.61 FCC, P.O. Box 979097,
(Electronic Filing) (FCC St. Louis, MO 63197-
605 & 159). 9000.
6. CMRS Cellular/Mobile .18 \2\ FCC, P.O. Box 979084,
Services (per unit) St. Louis, MO 63197-
9000.
(FCC 159)................
7. CMRS Messaging Services
(per unit)
(FCC 159)................ .08 \3\ FCC, P.O. Box 979084,
St. Louis, MO 63197-
9000.
8. Broadband Radio Service
(formerly MMDS and MDS).. 510 FCC, P.O. Box 979084,
St. Louis, MO 63197-
9000.
9. Local Multipoint 510 FCC, P.O. Box 979084,
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 Sec. 1.1102 of this
chapter.
\2\ These are standard fees that are to be paid in accordance with Sec.
1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with Sec.
1.1157(b) of this chapter.
[[Page 52455]]
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.
------------------------------------------------------------------------
Radio [AM and FM] (47 CFR
part 73) Fee amount Address
------------------------------------------------------------------------
1. AM Class A
<=25,000 population...... $775 FCC, Radio, P.O. Box
979084, St. Louis,
MO 63197-9000.
25,001-75,000 population. 1,550
75,001-150,000 population 2,325
150,001-500,000 3,475
population.
500,001-1,200,000 5,025
population.
1,200,001-3,000,000 7,750
population.
>3,000,000 population.... 9,300
2. AM Class B
<=25,000 population...... 645 FCC, Radio, P.O. Box
979084, St. Louis,
MO 63197-9000.
25,001-75,000 population. 1,300
75,001-150,000 population 1,625
150,001-500,000 2,750
population.
500,001-1,200,000 4,225
population.
1,200,001-3,000,000 6,500
population.
>3,000,000 population.... 7,800
3. AM Class C
<=25,000 population...... 590 FCC, Radio, P.O. Box
979084, St. Louis,
MO 63197-9000.
25,001-75,000 population. 900
75,001-150,000 population 1,200
150,001-500,000 1,800
population.
500,001-1,200,000 3,000
population.
1,200,001-3,000,000 4,500
population.
>3,000,000 population.... 5,700
4. AM Class D
<=25,000 population...... 670 FCC, Radio, P.O. Box
979084, St. Louis,
MO 63197-9000.
25,001-75,000 population. 1,000
75,001-150,000 population 1,675
150,001-500,000 2,025
population.
500,001-1,200,000 3,375
population.
1,200,001-3,000,000 5,400
population.
>3,000,000 population.... 6,750
5. AM Construction Permit.... 590 FCC, Radio, P.O. Box
979084, St. Louis,
MO 63197-9000.
6. FM Classes A, B1 and C3
<=25,000 population...... 750 FCC, Radio, P.O. Box
979084, St. Louis,
MO 63197-9000.
25,001-75,000 population. 1,500
75,001-150,000 population 2,050
150,001-500,000 3,175
population.
500,001-1,200,000 5,050
population.
1,200,001-3,000,000 8,250
population.
>3,000,000 population.... 10,500
7. FM Classes B, C, C0, C1
and C2
<=25,000 population...... 925 FCC, Radio, P.O. Box
979084, St. Louis,
MO 63197-9000.
25,001-75,000 population. 1,625
75,001-150,000 population 3,000
150,001-500,000 3,925
population.
500,001-1,200,000 5,775
population.
1,200,001-3,000,000 9,250
population.
>3,000,000 population.... 12,025
8. FM Construction Permits... 750 FCC, Radio, P.O. Box
979084, St. Louis,
MO, 3197-9000.
TV (47 CFR, part 73) VHF
Commercial
1. Markets 1 thru 10..... 86,075 FCC, TV Branch, P.O.
Box 979084, St.
Louis, MO 63197-
9000.
2. Markets 11 thru 25.... 78,975
3. Markets 26 thru 50.... 42,775
4. Markets 51 thru 100... 22,475
5. Remaining Markets..... 6,250
6. Construction Permits.. 6,250
UHF Commercial
1. Markets 1 thru 10..... 38,000 FCC,UHF Commercial,
P.O. Box 979084, St.
Louis, MO 63197-
9000.
2. Markets 11 thru 25.... 35,050
3. Markets 26 thru 50.... 23,550
4. Markets 51 thru 100... 13,700
5. Remaining Markets..... 3,675
6. Construction Permits.. 3,675
Satellite UHF/VHF Commercial
1. All Markets........... 1,525 FCC Satellite TV,
P.O. Box 979084, St.
Louis, MO 63197-
9000.
2. Construction Permits.. 960
[[Page 52456]]
Low Power TV, Class A TV, TV/ 410 FCC, Low Power, P.O.
FM Translator, & TV/FM Box 979084, St.
Booster (47 CFR part 74). Louis, 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.
------------------------------------------------------------------------
Radio facilities Fee amount Address
------------------------------------------------------------------------
1. Microwave (Domestic $20.00 FCC, P.O. Box 979097,
Public Fixed) St. Louis, MO 63197-
(Electronic Filing) (FCC 9000.
Form 601 & 159).
Carriers
1. Interstate Telephone .00347 FCC, Carriers P.O.
Service Providers (per Box 979084, St.
interstate and Louis, MO 63197-
international end-user 9000.
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 $510 FCC, Cable, P.O. Box
Service. 979084, St. Louis,
MO 63197-9000.
2. Cable TV System (per 1.02
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 $139,100 FCC, International,
Orbit). P.O. Box 979084, St.
Louis, MO 63197-
9000.
Space Stations (Non- 149,875 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 Louis, MO 63197-
registration). 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, 2012)
------------------------------------------------------------------------
Terrestrial Common Carrier.... $0.27 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.
[[Page 52457]]
------------------------------------------------------------------------
Submarine cable systems
(capacity as of Dec. 31, Fee amount Address
2012)
------------------------------------------------------------------------
< 2.5 Gbps................... $13,600 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-
9000.
2.5 Gbps or greater, but less 27,200 FCC, International,
than 5 Gbps. P.O. Box 979084, St.
Louis, MO 63197-
9000.
5 Gbps or greater, but less 54,425 FCC, International,
than 10 Gbps. P.O. Box 979084, St.
Louis, MO 63197-
9000.
10 Gbps or greater, but less 108,850 FCC, International,
than 20 Gbps. P.O. Box 979084, St.
Louis, MO 63197-
9000.
20 Gbps or greater........... 217,675 FCC, International,
P.O. Box 979084, St.
Louis, MO 63197-
9000.
------------------------------------------------------------------------
[FR Doc. 2013-20516 Filed 8-22-13; 8:45 am]
BILLING CODE 6712-01-P