Assessment and Collection of Regulatory Fees for Fiscal Year 2015, 37206-37218 [2015-15971]

Download as PDF 37206 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules if you are faxing comments). • Mail: Carl Daly, Director, Air Program, EPA, Region 8, Mailcode 8P– AR, 1595 Wynkoop Street, Denver, Colorado 80202–1129. • Hand Delivery: Director, Air Program, EPA, Region 8, Mailcode 8P– AR, 1595 Wynkoop Street, Denver, Colorado 80202–1129. Such deliveries are only accepted Monday through Friday, 8:00 a.m. to 4:30 p.m., excluding federal holidays. Special arrangements should be made for deliveries of boxed information. Please see the direct final rule which is located in the Rules Section of this Federal Register for detailed instruction on how to submit comments. FOR FURTHER INFORMATION CONTACT: Gail Fallon, Air Program, EPA, Region 8, Mailcode 8P–AR, 1595 Wynkoop Street, Denver, Colorado, 80202–1129, (303) 312–6218, Fallon.Gail@epa.gov. SUPPLEMENTARY INFORMATION: In the ‘‘Rules and Regulations’’ section of this Federal Register, EPA is approving the State’s SIP revision as a direct final rule without prior proposal because the Agency views this as a noncontroversial SIP revision and anticipates no adverse comments. A detailed rationale for the approval is set forth in the preamble to the direct final rule. If EPA receives no adverse comments, EPA will not take further action on this proposed rule. If EPA receives adverse comments, EPA will withdraw the direct final rule and it will not take effect. EPA will address all public comments in a subsequent final rule based on this proposed rule. EPA will not institute a second comment period on this action. Any parties interested in commenting must do so at this time. For further information, please see the ADDRESSES section of this notice. Please note that if EPA receives adverse comment on a distinct provision of the rule and if that provision may be severed from the remainder of the rule, EPA may adopt as final those provisions of the rule that are not the subject of an adverse comment. See the information provided in the Direct Final action of the same title which is located in the Rules and Regulations Section of this Federal Register. asabaliauskas on DSK5VPTVN1PROD with PROPOSALS INFORMATION CONTACT Authority: 42 U.S.C. 7401 et seq. Dated: June 9, 2015. Shaun L. McGrath, Regional Administrator, Region 8. [FR Doc. 2015–15525 Filed 6–29–15; 8:45 am] BILLING CODE 6560–50–P VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 1 [MD Docket Nos. 14–92; 15–121; 15–121; FCC 15–59] Assessment and Collection of Regulatory Fees for Fiscal Year 2015 Federal Communications Commission. ACTION: Notice of proposed rulemaking. AGENCY: In this document, the Federal Communications Commission (Commission) will revise its Schedule of Regulatory Fees in order to recover an amount of $339,844,000 that Congress has required the Commission to collect for fiscal year 2015. DATES: Submit comments on or before June 22, 2015, and reply comments on or before July 6, 2015. ADDRESSES: You may submit comments, identified by MD Docket No. 15–121, by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Federal Communications Commission’s Web site: https:// www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments. • People with Disabilities: Contact the FCC to request reasonable accommodations (accessible format documents, sign language interpreters, CART, etc.) by email: FCC504@fcc.gov or phone: 202–418–0530 or TTY: 202– 418–0432. • E-mail: ecfs@fcc.gov. Include MD Docket No. 15–121 in the subject line of the message. • Mail: Commercial overnight mail (other than U.S. Postal Service Express Mail, and Priority Mail, must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-class, Express, and Priority mail should be addressed to 445 12th Street SW., Washington DC 20554. For detailed instructions for submitting comments and additional information on the rulemaking process, see the SUPPLEMENTARY INFORMATION section of this document. FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing Director at (202) 418–0444. SUPPLEMENTARY INFORMATION: This is a summary of the Commission’s Notice of Proposed Rulemaking (NPRM), Report and Order, and Order, FCC 15–59, MD Docket No. 15–121, adopted on May 20, 2015 and released May 21, 2015. The full text of this document is available for inspection and copying during normal SUMMARY: PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 business hours in the FCC Reference Center, 445 12th Street SW., Room CY– A257, Portals II, Washington, DC 20554, and may also be purchased from the Commission’s copy contractor, BCPI, Inc., Portals II, 445 12th Street SW., Room CY–B402, Washington, DC 20554. Customers may contact BCPI, Inc. via their Web site, https://www.bcpi.com, or call 1–800–378–3160. This document is available in alternative formats (computer diskette, large print, audio record, and braille). Persons with disabilities who need documents in these formats may contact the FCC by email: FCC504@fcc.gov or phone: 202– 418–0530 or TTY: 202–418–0432. I. Procedural Matters A. Ex Parte Rules Permit-But-Disclose Proceeding 1. The Notice of Proposed Rulemaking (FY 2015 NPRM), Report and Order, and Order shall be treated as a ‘‘permit-butdisclose’’ proceeding in accordance with the Commission’s ex parte rules. Persons making ex parte presentations must file a copy of any written presentation or a memorandum summarizing any oral presentation within two business days after the presentation (unless a different deadline applicable to the Sunshine period applies). Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation must list all persons attending or otherwise participating in the meeting at which the ex parte presentation was made, and summarize all data presented and arguments made during the presentation. If the presentation consisted in whole or in part of the presentation of data or arguments already reflected in the presenter’s written comments, memoranda, or other filings in the proceeding, the presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be found) in lieu of summarizing them in the memorandum. Documents shown or given to Commission staff during ex parte meetings are deemed to be written ex parte presentations and must be filed consistent with section 1.1206(b). In proceedings governed by section 1.49(f) or for which the Commission has made available a method of electronic filing, written ex parte presentations and memoranda summarizing oral ex parte presentations, and all attachments thereto, must be filed through the electronic comment filing system available for that proceeding, and must E:\FR\FM\30JNP1.SGM 30JNP1 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules asabaliauskas on DSK5VPTVN1PROD with PROPOSALS be filed in their native format (e.g., .doc, .xml, .ppt, searchable .pdf). Participants in this proceeding should familiarize themselves with the Commission’s ex parte rules. B. Comment Filing Procedures 2. Comments and Replies. Pursuant to sections 1.415 and 1.419 of the Commission’s rules, 47 CFR 1.415, 1.419, interested parties may file comments and reply comments on or before the dates indicated on the first page of this document. Comments may be filed using: (1) the Commission’s Electronic Comment Filing System (ECFS), (2) the Federal Government’s eRulemaking Portal, or (3) by filing paper copies. See Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998). • Electronic Filers: Comments may be filed electronically using the Internet by accessing the ECFS: https:// fjallfoss.fcc.gov/ecfs2/ or the Federal eRulemaking Portal: https:// www.regulations.gov. • Paper Filers: Parties who choose to file by paper must file an original and four copies of each filing. If more than one docket or rulemaking number appears in the caption of this proceeding, filers must submit two additional copies for each additional docket or rulemaking number. Filings can be sent by hand or messenger delivery, by commercial overnight courier, or by first-class or overnight U.S. Postal Service mail. All filings must be addressed to the Commission’s Secretary, Office of the Secretary, Federal Communications Commission. D All hand-delivered or messengerdelivered paper filings for the Commission’s Secretary must be delivered to FCC Headquarters at 445 12th St. SW., Room TW–A325, Washington, DC 20554. The filing hours are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with rubber bands or fasteners. Any envelopes must be disposed of before entering the building. D Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. D U.S. Postal Service first-class, Express, and Priority mail must be addressed to 445 12th Street SW., Washington, DC 20554. People with Disabilities: To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an email to fcc504@fcc.gov or call the Consumer & Governmental Affairs VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 Bureau at 202–418–0530 (voice), 202– 418–0432 (tty). 3. Availability of Documents. Comments, reply comments, and ex parte submissions will be available for public inspection during regular business hours in the FCC Reference Center, Federal Communications Commission, 445 12th Street SW., CY– A257, Washington, DC 20554. These documents will also be available free online, via ECFS. Documents will be available electronically in ASCII, Word, and/or Adobe Acrobat. 4. Accessibility Information. To request information in accessible formats (computer diskettes, large print, audio recording, and Braille), send an email to fcc504@fcc.gov or call the Commission’s Consumer and Governmental Affairs Bureau at (202) 418–0530 (voice), (202) 418–0432 (TTY). This document can also be downloaded in Word and Portable Document Format (‘‘PDF’’) at: https:// www.fcc.gov. C. Initial Paperwork Reduction Act 5. This NPRM, Report and Order, and Order document solicits possible proposed information collection requirements. The Commission, as part of its continuing effort to reduce paperwork burdens, invites the general public and the Office of Management and Budget (OMB) to comment on the possible proposed information collection requirements contained in this document, as required by the Paperwork Reduction Act of 1995, Public Law 104–13. In addition, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107–198, see 44 U.S.C. 3506(c)(4), the Commission seeks specific comment on how it can further reduce the information collection burden for small business concerns with fewer than 25 employees. D. Initial Regulatory Flexibility Analysis 6. An initial regulatory flexibility analysis (‘‘IRFA’’) is contained in Attachment E. Comments to the IRFA must be identified as responses to the IRFA and filed by the deadlines for comments on the Notice of Proposed Rulemaking (NPRM). The Commission will send a copy of this NPRM, including the IRFA, to the Chief Counsel for Advocacy of the Small Business Administration. II. Introduction and Executive Summary 7. In this Notice of Proposed Rulemaking, we seek comment on the Federal Communications Commission’s (FCC’s or Commission’s) proposed PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 37207 regulatory fees for fiscal year (FY) 2015 to collect $339,844,000.1 In addition, we seek comment on the Puerto Rico Broadcasters Association’s (PRBA’s) request for relief from regulatory fee assessments on radio and television stations in Puerto Rico due to substantial financial hardships.2 III. Background 8. The Commission is required by Congress to assess regulatory fees each year in an amount that can reasonably be expected to equal the amount of its appropriation.3 Regulatory fees, assessed each fiscal year, are to ‘‘be derived by determining the full-time equivalent number of employees performing’’ these activities, ‘‘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 . . . .’’ 4 Regulatory fees recover direct costs, such as salary and expenses; indirect costs, such as overhead functions; and support costs, such as rent, utilities, or equipment.5 Regulatory fees also cover the costs incurred in regulating entities that are statutorily exempt from paying regulatory fees,6 entities whose regulatory fees are waived,7 and entities that provide nonregulated services. Congress sets the amount the Commission must collect each year in the Commission’s fiscal year appropriations, and section 9(a)(2) of the Communications Act of 1934, as amended (Communications Act or Act) requires the Commission to collect fees sufficient to offset the amount appropriated.8 To calculate regulatory fees, the Commission allocates the total collection target, as mandated by Congress each year, across all regulatory fee categories. The allocation of fees to fee categories is based on the Commission’s calculation of full time 1 The proposed regulatory fees include a proposed five percent reduction in regulatory fees for submarine cable systems and bearer circuits, reflected in Table C. 2 See Letter from Messrs. Francisco Montero, Esq. and Jonathan R. Markman, Esq., Counsel for the Puerto Rico Broadcasters Association, filed in Docket No. 14–92, to Marlene Dortch, Secretary, Federal Communications Commission (Dec. 10, 2014) (PRBA Letter). 3 47 U.S.C. 159(b)(1)(B). 4 47 U.S.C. 159(b)(1)(A). 5 See Assessment and Collection of Regulatory Fees for Fiscal Year 2004, Report and Order, 69 FR 41028 at 41030, para. 11 (July 7, 2004) (FY 2004 Report and Order). 6 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. 7 47 CFR 1.1166. 8 47 U.S.C. 159(a)(2). E:\FR\FM\30JNP1.SGM 30JNP1 37208 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules asabaliauskas on DSK5VPTVN1PROD with PROPOSALS employees (FTEs) 9 in each regulatory fee category. Historically, the Commission has classified FTEs as ‘‘direct’’ if the employee is in one of the four ‘‘core’’ bureaus; otherwise, that employee was considered an ‘‘indirect’’ FTE.10 The total FTEs for each fee category includes the direct FTEs associated with that category, plus a proportional allocation of the indirect FTEs. 9. Section 9 of the Communications Act requires the Commission to make certain changes (i.e., mandatory amendments) to the regulatory fee schedule if it ‘‘determines that the Schedule requires amendment to comply with the requirements’’ of section 9(b)(1)(A).11 In addition, the Commission must 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.’’ 12 These ‘‘permitted amendments’’ require Congressional notification.13 The changes in fees resulting from both mandatory and permitted amendments are not subject to judicial review.14 10. The Commission continues to improve the regulatory fee process by ensuring a more equitable distribution of the regulatory fee burden among categories of Commission licensees under the statutory framework in section 9 of the Communications Act. For example, in 2013, the Commission updated the FTE allocations to more 9 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. 10 The core bureaus are the Wireline Competition Bureau (172 FTEs), Wireless Telecommunications Bureau (91 FTEs), Media Bureau (155 FTEs), and part of the International Bureau (28 FTEs), totaling 446 ‘‘direct’’ FTEs. The ‘‘indirect’’ FTEs are the employees from the following bureaus and offices: Enforcement Bureau, Consumer & Governmental Affairs Bureau, Public Safety and Homeland Security Bureau, Chairman and Commissioners’ offices, Office of the 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 1,037 ‘‘indirect’’ FTEs. These totals are as of Oct. 1, 2014 and exclude auctions FTEs. 11 47 U.S.C. 159(b)(3). 12 47 U.S.C. 159(b)(3). 13 47 U.S.C. 159(b)(4)(B). 14 47 U.S.C. 159(b)(3). But see Comsat Corp. v. FCC, 114 F.3d 223, 227 (D.C. Cir. 1997) (‘‘Where, as here, we find that the Commission has acted outside the scope of its statutory mandate, we also find that we have jurisdiction to review the Commission’s action.’’) VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 accurately align regulatory fees with the costs of Commission oversight and regulation,15 as recommended in the GAO Report, a report issued by the Government Accountability Office (GAO) in 2012.16 The Commission also reallocated some FTEs from the International Bureau as ‘‘indirect.’’ 17 Subsequently, in the FY 2014 Report and Order, the Commission adopted the new toll free number regulatory fee category 18 and, in the accompanying FY 2014 Further Notice of Proposed Rulemaking, the Commission sought additional comment on a new regulatory fee category for DBS.19 In our Report and Order, we now add a subcategory for DBS providers in the cable television and IPTV regulatory fee category based on our finding that Media Bureau FTEs work on issues and proceedings that include DBS as well as other multichannel video programming distributors (MVPDs). IV. Discussion A. Notice of Proposed Rulemaking 1. Proposed Regulatory Fees 11. We propose to collect $339,844,000 in regulatory fees for FY 2015, pursuant to section 9 of the Communications Act.20 Of this amount, we project approximately $21.3 million (6.28 percent of the total FTE allocation) in fees from the International Bureau regulatees; 21 $69.3 million (20.40 percent of the total FTE allocation) in fees from the Wireless Telecommunications Bureau regulatees; 22 $131.1 million (38.57 percent of the total FTE allocation) from Wireline Competition Bureau 15 Assessment and Collection of Regulatory Fees for Fiscal Year 2013, Report and Order, MD Docket No. 13–140, 78 FR 52433, at 52436–52437 at paras. 10–15 (August 23, 2013) (FY 2013 Report and Order). 16 In 2012, the GAO concluded that the Commission should conduct an overall analysis of the regulatory fee categories and perform an updated FTE analysis by fee category. GAO ‘‘Federal Communications Commission Regulatory Fee Process Needs to be Updated,’’ GAO–12–686 (Aug. 2012) (GAO Report) at 36, (available at https://www.gao.gov/products/GAO–12–686). 17 FY 2013 Report and Order, 78 FR 52433, 52436–52438 at paras. 12–21, (August 23, 2013) (FY 2013 Report and Order). 18 FY 2014 Report and Order, 79 FR 54190 at 54195–54196 at paras. 28–31, (September 11, 2014) (FY 2014 Report and Order). 19 FY 2014 Further Notice of Proposed Rulemaking, 79 FR 63883 at 63885–63886 at paras. 10–15, (October 27, 2014) (FY 2014 Further Notice of Proposed Rulemaking). 20 47 U.S.C. 159. 21 Includes satellites, earth stations, submarine cable, and bearer circuits. 22 Includes Commercial Mobile Radio Service (CMRS), CMRS messaging, Broadband Radio Service/Local Multipoint Distribution Service (BRS/ LMDS), and multi-year wireless licensees. PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 regulatees; 23 and $118.1 million (34.75 percent of the total FTE allocation) from the Media Bureau regulatees.24 12. These regulatory fees are mandated by Congress and are collected ‘‘to recover the costs of . . . enforcement activities, policy and rulemaking activities, user information services, and international activities.’’ 25 We seek comment on the proposed regulatory fee schedule in Table C. 13. This proposed fee schedule in Table C includes a new regulatory fee for DBS (a subcategory in the cable television and IPTV category) adopted in the Report and Order portion of this document.26 We estimate the number of payment units to be 34,000,000 and propose setting the initial rate at 12 cents per year, or one cent per month.27 Because DBS regulatory fees offset cable television and IPTV fees, the cable television and IPTV rate would be reduced from $1.01 to $0.95 per subscriber at this rate for DBS. We seek comment on this rate. We also seek comment on whether setting the initial rate for DBS at one cent per customer per month would address DIRECTV and DISH’s contention that a ‘‘fee increase will cause rate shock.’’ 28 14. The proposed fee schedule also includes fees for toll free numbers (a subcategory in the ITSP category) adopted in our FY 2014 Report and Order.29 We estimate the number of assessable toll-free numbers to be 36.5 million and propose setting the rate at 12 cents per year, or one cent per month.30 Because toll-free number 23 Includes Interstate Telecommunications Service Providers (ITSP) and toll free numbers. 24 Includes AM radio, FM radio, television, low power/FM, cable and IPTV, DBS, and Cable Television Relay Service (CARS) licenses. 25 47 U.S.C. 159(a). 26 See section III.B.3. 27 When the Commission added IPTV to the cable television category, it set the initial rate for IPTV equal to the cable television rate. See FY 2013 Report and Order, 78 FR 52433 at 52443–52444 at paras. 35–36, (August 23, 2013) (FY 2013 Report and Order). Last year, we invited ‘‘further comment on whether regulatory fees paid by DBS providers should be included in the cable television and IPTV category and assessed in the same manner.’’ FY 2014 NPRM, 79 FR 37982 at 37991 at para. 49 (July 3, 2014) (FY 2014 Notice of Proposed Rulemaking). In the FY 2014 Further Notice of Proposed Rulemaking, we sought comment on ‘‘whether DBS providers should pay a regulatory fee . . . at a much lower rate than that for other MVPDs, such as one-tenth of the anticipate revenue if DBS were combined with MVPD.’’ FY 2014 Further Notice of Proposed Rulemaking, 79 FR 63883 at 63886 at para. 13 (October 27, 2014) (FY 2014 Further Notice of Proposed Rulemaking). 28 DIRECTV and DISH Comments at 11. 29 See FY 2014 Report and Order, 79 FR 54190 at 54195 at paras. 28–31 (September 11, 2014) (FY 2014 Report and Order). 30 When the Commission first sought comment on assessing Responsible Organizations (or RespOrgs), E:\FR\FM\30JNP1.SGM 30JNP1 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules asabaliauskas on DSK5VPTVN1PROD with PROPOSALS regulatory fees offset ITSP fees, the ITSP rate would be reduced from 0.00340 to 0.00329. We seek comment on this estimate and this rate. 15. In addition, the annual regulatory fees eliminated in the FY 2014 Report and Order will no longer be included in the regulatory fee schedule, i.e., the annual regulatory fee for Broadcast Auxiliaries and Satellite TV Construction Permit, and one multi-year regulatory fee category (218–219 MHz). The projected revenues that would otherwise have been collected from the three regulatory fee categories that were eliminated last year are allocated proportionally to their respective service categories in the proposed regulatory fees in Table C. Specifically, the projected revenues from the 218– 219 MHz fee category are proportionally allocated to the wireless service categories and the Satellite Television Construction Permit and Broadcast Auxiliary fee categories are proportionally allocated to the media service categories. 16. We also seek comment on revising the apportionment between International Bureau licensees to reduce the proportion paid by the submarine cable/terrestrial and satellite bearer circuits fee categories by approximately five percent. In the FY 2014 Report and Order, we concluded that the regulatory fee assessment for the submarine cable/ terrestrial and satellite bearer circuits fee categories did not fairly take into account the Commission’s minimal oversight and regulation of the industry and we reduced the regulatory fee apportionment by five percent and stated that we would revisit the issue to determine if additional adjustment is warranted.31 Currently, the submarine cable and bearer circuit category is allocated 31.36 percent of the International Bureau regulatory fees. We propose a five percent decrease based on our tentative conclusion that the fee remains excessive relative to the minimal Commission oversight and regulation of this industry. 17. We also seek comment on whether the Commission should review the apportionment of regulatory fees among it discussed a rate of one penny per month per number and estimated that regulatory fees for tollfree numbers would approximate $4 million at that rate. See FY 2014 NPRM, 79 FR 37982 at 37993 at para 57 (July 3, 2014) (FY 2014 Notice of Proposed Rulemaking). 31 We adopted a reallocation for submarine cable systems and bearer circuits in the FY 2014 Report and Order and indicated that we would revisit this issue in future proceedings to determine if additional adjustment would be warranted. See FY 2014 Report and Order, 79 FR 54190 at 54192– 54193 at para. 14 (September 11, 2014) (FY 2014 Report and Order). VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 broadcasters. First, we expect to collect $28,356,435 from radio broadcasters and $23,650,250 from television broadcasters in fiscal year 2015. We estimate that 10,226 radio broadcasters and 4,754 television broadcasters will pay these regulatory fees 32 and note that among the broadcasters that are statutorily exempt from paying fees, noncommercial education (NCE) radio stations significantly outnumber NCE television stations.33 Nonetheless, should the Commission reexamine the number of FTEs devoted to the regulation of radio versus television broadcasters and adjust the fee paid by radio and television broadcasters to more accurately take into account factors related to ‘‘the benefits provided to the payor of the fee by the Commission’s activities’’? 34 Second, we currently assess regulatory fees on television broadcasters based on the ranking of the market they serve (market nos. 1–10; 11–25; 26–50; 51–100; >100) but assess regulatory fees on radio broadcasters based on the population they serve (<25,000; 25,001–75,000; 75,001–150,000; 150,001–500,000; 500,001–1,200,000; 1,200,001– 3,000,000; >3,000,000). Do the dividing points for higher fee levels for both television and radio broadcasters remain appropriate? Should we adjust the dividing points for radio broadcasters to account for demographic change? Should we assess radio broadcasters based on market served rather than population served, which may provide more stability and predictability for radio broadcasters? Third, we currently divide radio broadcasters into six categories by type and class of service (AM class A; AM class B; AM class C; AM class D; FM classes A, B1, & C3; FM classes B, C, C0, C1, & C2). We note that FM class B stations pay more than FM class A stations at every population level because FM class A stations serve the smallest areas of all FM station classes, whereas this relationship is inverted among the AM stations since AM class A stations serve the largest areas among AM stations. But no single 32 See Table B, AM Class, A, B, C, D, and FM categories, total 10,226; TV digital markets 1–100 + remaining markets + the LPTV category, total 4,754. 33 As of March 31, 2015, there were 5110 licensed NCE (including low power FM) radio stations and 395 licensed NCE television stations. See Broadcast Station Totals as of March 31, 2015, News Release (rel. Apr. 9, 2015). 34 47 U.S.C. 159(b)(1)(A) (providing for adjustment of the FTE allocation to ‘‘take into account factors that are reasonably related to the benefits provided to the payor of the fee by the Commission’s activities, including such factors as service area coverage, shared use versus exclusive use, and other factors that the Commission determines are necessary in the public interest.’’) PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 37209 ratio apportions regulatory fees among AM and FM radio categories; for example, AM class A stations sometimes pay more than FM class A stations (when they serve fewer than 500,000 people) but other times pay more (when they serve more than 500,000 people).35 Should we consolidate these categories and reapportion the regulatory fees paid by each category such that regulatory fees collected are based either on population served or rank of market served? We seek comment on these and related questions concerning the apportionment of regulatory fees among broadcasters. We tentatively conclude that changes made to the assessment of regulatory fees on broadcasters would constitute a permitted amendment 36 and therefore would not likely apply to FY 2015 regulatory fees. 18. In addition, we seek comment generally on other regulatory fee reform measures we can adopt.37 For example, should we raise the earth station regulatory fees and thereby reduce satellite fees? 38 Are there specific divisions within bureaus or offices that should be allocated as direct instead of indirect? 39 We welcome comment on these issues and other proposals for regulatory fee reform. 2. Puerto Rico Broadcasters Association’s Request for Regulatory Fee Relief 19. On December 10, 2014, PRBA filed a letter seeking regulatory fee relief for the radio broadcasters in the Commonwealth of Puerto Rico. PRBA requests that the Commission take into consideration significant population declines and economic factors when determining the regulatory fees owed by radio station operators in Puerto Rico. In particular, PRBA requests that the Commission use more recent figures to determine the radio station population 35 Or compare AM class B and class D stations. In areas with fewer than 25,000 people, class B stations pay $25 less than class D stations. In areas with 25,001–75,000, they pay $300 more. Less again at 75,001–150,000 people; more again above that. See Table C. 36 47 U.S.C. 159(b)(3). 37 These issues here were raised in an ex parte filed by SIA. See Letter from Tom Stroup, President, Satellite Industry Association, to Marlene H. Dortch, Secretary, FCC (Apr. 30, 2015). We welcome any suggestions from commenters on regulatory fee reform. 38 Earth station fees were increased by 7.5 percent last year. See FY 2014 Report and Order, 79 FR 54190 at 54193 at para. 15 (September 11, 2014) (FY 2014 Report and Order). 39 This issue was raised previously; see FY 2014 NPRM, 79 FR 37982 at 37987–37988 at paras. 28– 33 (July 3, 2014) (FY 2014 Notice of Proposed Rulemaking). E:\FR\FM\30JNP1.SGM 30JNP1 37210 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules count for radio stations in Puerto Rico.40 PRBA argues that economic challenges 41 and population decline 42 in Puerto Rico warrant regulatory relief. Specifically, PRBA contends that Puerto Rico has an unprecedented unemployment rate of almost 14 percent, well above the overall United States unemployment rate and much higher than the two states with the next highest unemployment rates.43 In addition, PRBA asserts that the per capita income in Puerto Rico 44 is half of the per capita income of the state with the lowest per capita income 45 and over one-third of the households in Puerto Rico receive food stamps.46 PRBA argues that due to the economic hardship in the territory, the population has decreased in the past nine years by almost six percent because of migration to the mainland United States and a declining birthrate.47 Finally, PRBA contends that the radio listening market is limited because it is restricted to listeners within the boundaries of the island.48 20. Every ten years the Commission updates its radio station population counts to reflect nationwide changes in the population using the ‘‘block level census data’’ from the U.S. Census. PRBA asks the Commission to examine population data every five years instead of every 10 years to increase the accuracy of the population counts in Puerto Rico. We are unable to adopt PRBA’s suggestion because the ‘‘block level census data’’ is only available from the U.S. Census Bureau every 10 years. Further, even if such figures were available every five years, they would be unlikely to provide a basis for fee relief for radio stations in Puerto Rico because fees on AM and FM radio stations are not assessed at granular levels but 40 PRBA Letter at 2–4. Letter at 2–3. 42 PRBA Letter at 3–4. 43 PRBA Letter at 2; https://www.ncsl.org/research/ labor-and-employment/state-unemploymentupdate.aspx for the December 2014 unemployment rates for each state. The unemployment rate for Puerto Rico is 13.7 percent; the next highest unemployment rates are those of the District of Columbia (7.3 percent), Mississippi (7.2 percent), and California, (7 percent). 44 See https://www.census.gov/newsroom/pressreleases/2014/cb14-17.html (Puerto Rico median household income 2010–2012 was $19,518.) 45 See https://www.census.gov/hhes/www/ income/data/statemedian/ (Mississippi median income 2010–2013 was $41,664). 46 PRBA Letter at 2–3. Instead of the Supplemental Nutrition Assistance Program (SNAP), qualifying Puerto Rican residents receive Nutrition Assistance for Puerto Rico (NAP). 47 PRBA Letter at 3. 48 PRBA Letter at 5. asabaliauskas on DSK5VPTVN1PROD with PROPOSALS 41 PRBA VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 instead over a wide strata of the population.49 21. PRBA requests that the Commission provide relief through the reduction of regulatory fees for Puerto Rico radio broadcasters due to economic hardship, unique geography, and declining population. We seek comment on this proposal and on whether the unique circumstances described by PRBA should result in one of the following actions: (i) Moving the Puerto Rico market stations to a different rate (e.g., reducing them down to a lower population strata) because of the downward trend in the population and other factors; (ii) creating a separate fee category for the Puerto Rico market at a lower rate; or (iii) adopting a special provision in our rules for economically depressed geographic areas to seek a ‘‘fast track’’ waiver of regulatory fees. For any of these actions, commenters should also discuss how such a process could satisfy the requirement to demonstrate that compelling and extraordinary circumstances outweigh the public interest in recouping the Commission’s regulatory costs. 22. We recognize that fee relief is ordinarily processed through a waiver request.50 PRBA has not identified whether every station in Puerto Rico is financially unable to pay the regulatory fee, and although we recognize that preparing and filing waiver requests, including supporting financial information for each radio station in Puerto Rico, may be administratively and financially burdensome, granting across-the-board relief for Puerto Rican stations may shift the burden of regulatory fees from stations better able to afford them to those less able. Therefore, we also seek comment on whether the ordinary waiver process is sufficient here, making clear that a regulatee may raise the same issues that 49 The regulatory fee rate starts at population counts of 25,000 and below, and then increases to population counts of 25,001–75,000; 75,001– 150,000; 150,001–500,000; 500,001–1,200,000; 1,200,001–3,000,000; and above 3,000,000. 50 Fees may be waived, reduced or deferred in specific instances, on a case-by-case basis, where good cause is shown and where waiver, reduction or deferral of the fee would promote the public interest. 47 U.S.C. 159(d); 47 CFR 1.1166. Fee relief may be granted based on a ‘‘sufficient showing of financial hardship.’’ See Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Memorandum Opinion and Order, 60 FR 34902 at 34903 at para. 12 (July 5, 1995) (FY 1994 Regulatory Fees Memorandum of Opinion and Order). In such matters, however, ‘‘[m]ere allegations or documentation of financial loss, standing alone,’’ do not suffice and ‘‘it [is] incumbent upon each regulatee to fully document its financial position and show that it lacks sufficient funds to pay the regulatory fee and to maintain its service to the public.’’ Id. PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 PRBA has raised whenever it files a waiver request. V. Procedural Matters A. Payment of Regulatory Fees 1. Revised Credit Card Transaction Levels 23. In accordance with U.S. Treasury Announcement No. A–2014–04 (July 2014), the amount that can be charged on a credit card for transactions with federal agencies has been reduced to $24,999.99.51 Previously, the credit card limit was $49,999.99. This lower transaction amount is effective June 1, 2015. Transactions greater than $24,999.99 will be rejected. This limit applies to single payments or bundled payments of more than one bill. Multiple transactions to a single agency in one day may be aggregated and treated as a single transaction subject to the $24,999.99 limit. Customers who wish to pay an amount greater than $24,999.99 should consider available electronic alternatives such as Visa or MasterCard debit cards, Automated Clearing House (ACH) debits from a bank account, and wire transfers. Each of these payment options is available after filing regulatory fee information in Fee Filer. Further details will be provided regarding payment methods and procedures at the time of FY 2015 regulatory fee collection. 24. Customers who owe an amount on a bill, debt, or other obligation due to the federal government are prohibited from splitting the total amount due into multiple payments. Splitting an amount owed into several payment transactions violates the credit card network and Fiscal Service rules. An amount owed that exceeds the Fiscal Service maximum dollar amount, $24,999.99, may not be split into two or more payment transactions in the same day by using one or multiple cards. Also, an amount owed that exceeds the Fiscal Service maximum dollar amount may not be split into two or more transactions over multiple days by using one or more cards. 2. De Minimis Regulatory Fees 25. Regulatees whose total FY 2015 regulatory fee liability, including all categories of fees for which payment is due, is $500 or less, are exempted from payment of FY 2015 regulatory fees. The de minimis threshold of $500 or less applies only to filers of annual regulatory fees (not regulatory fees paid through multi-year filings) between October 1 and September 30. If the sum 51 Treasury Financial Manual, Announcement No. A–2014–04 (July 2014). E:\FR\FM\30JNP1.SGM 30JNP1 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules total of all annual regulatory fee obligations is $500 or less, the regulatee is exempt from paying regulatory fees for that fiscal year. This de minimis status is not a permanent exemption from regulatory fees. Rather, each regulatee will need to reevaluate their total fee liability each fiscal year to determine whether they meet the de minimis exemption. 3. Standard Fee Calculations and Payment Dates 26. 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, 2014 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, 2014. In instances where a permit or license is transferred or assigned after October 1, 2014, 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, 2014. In instances where a permit or license is transferred or assigned after October 1, 2014, 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.52 • 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, 2014. The number of subscribers, units, or telephone numbers on December 31, 2014 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, 2014, responsibility for payment rests with the holder of the permit or license as of the fee due date. • The first eight regulatory fee categories in our Schedule of Regulatory Fees (see Table C) pay ‘‘small multi-year wireless regulatory fees.’’ Entities pay these regulatory fees in advance for the entire amount period covered by the five-year or ten-year terms of their initial licenses, and pay regulatory fees again only when the license is renewed or a new license is obtained. We include these fee categories in our rulemaking (see Table C) to publicize our estimates of the number of ‘‘small multi-year wireless’’ licenses that will be renewed or newly obtained in FY 2015. • Multichannel Video Programming Distributor Services (cable television operators, IPTV providers, DBS providers, and CARS licensees): Regulatory fees must be paid for the number of basic cable tier subscribers, IPTV subscribers, and DBS subscribers as of December 31, 2014.53 Regulatory fees also must be paid for CARS licenses that were granted on or before October 1, 2014. In instances where a permit or license is transferred or assigned after October 1, 2014, 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 (1) earth stations and (2) geostationary orbit space stations and non-geostationary orbit satellite systems that were licensed and operational on or before October 1, 2014. In instances where a permit or license is transferred or assigned after October 1, 2014, 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 37211 on a per cable landing license basis based on circuit capacity as of December 31, 2014. In instances where a license is transferred or assigned after October 1, 2014, responsibility for payment rests with the holder of the license as of the fee due date. For regulatory fee purposes, the allocation in FY 2015 will be 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, 2014 in any terrestrial or satellite transmission facility for the provision of service to an end user or resale carrier. When calculating the number of such active circuits, the facilities-based common carriers must include circuits held by themselves or their affiliates. In addition, noncommon carrier satellite operators must pay a fee for each circuit they and their affiliates hold and each circuit sold or leased to any customer, 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, 2014. 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, 2014, 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 2015 will remain at 87.6 percent for submarine cable and 12.4 percent for satellite/ terrestrial facilities. VI. Additional Tables TABLE A—LIST OF COMMENTERS Commenter Abbreviation asabaliauskas on DSK5VPTVN1PROD with PROPOSALS Initial Comments DIRECTV, LLC and DISH Network, L.L.C. ......................................................................................................................... ITTA—The Voice of Mid-Size Communications Companies .............................................................................................. National Cable and Telecommunications Association and the American Cable Association ............................................ Satellite Industry Association .............................................................................................................................................. SMS/800, Inc. ...................................................................................................................................................................... 52 Audio bridging services are toll teleconferencing services. 53 Cable television system operators, DBS providers, and IPTV providers should compute their number of basic subscribers as follows: VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 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: BulkRate Customers = Total annual bulk-rate charge PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 DIRECTV and DISH. ITTA. NCTA and ACA. SIA. SMS/800. divided by basic annual subscription rate for individual households. Operators/providers may base their count on ‘‘a typical day in the last full week’’ of December 2014, rather than on a count as of December 31, 2014. E:\FR\FM\30JNP1.SGM 30JNP1 37212 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules TABLE A—LIST OF COMMENTERS—Continued Commenter Abbreviation Reply Comments CenturyLink ......................................................................................................................................................................... DIRECTV, LLC and DISH Network, L.L.C. ......................................................................................................................... Hypercube Telecom, LLC ................................................................................................................................................... National Cable and Telecommunications Association and the American Cable Association ............................................ CenturyLink. DIRECTV and DISH. Hypercube. NCTA and ACA. TABLE B—CALCULATION OF FY 2015 REVENUE REQUIREMENTS AND PRO-RATA FEES [Regulatory fees for the first seven categories below are collected by the Commission in advance to cover the term of the license and are submitted at the time the application is filed.] Computed FY 2015 regulatory fee Rounded FY 2015 regulatory fee 543,780 3,121,700 2,537,640 951,615 422,940 172,701 162,127 278,184 3,447,842 1,230,932 4,169,282 8,594,443 10,444,503 17,110 136,500 198,228 6,223,883 5,871,584 4,959,846 4,570,532 1,822,393 9,600 30 10 20 15 10 35 35 4,280 2,291 1,385 2,794 2,744 3,323 590 750 1,561 46,447 42,858 27,402 16,150 4,808 4,800 30 10 20 15 10 35 35 4,275 2,300 1,375 2,800 2,750 3,325 590 750 1,550 46,450 42,850 27,400 16,150 4,800 4,800 540,000 3,100,000 2,520,000 945,000 420,000 171,500 161,000 277,875 3,461,500 1,222,375 4,177,600 8,613,000 10,450,475 17,110 136,500 196,850 6,224,300 5,870,450 4,959,400 4,570,450 1,819,200 9,600 1,570,300 196,625 64,746,000 ........................ 1,576,156 196,365 61,054,410 4,108,560 433 655 .94658 .12 435 655 .95 .12 1,583,400 196,500 61,275,000 4,080,000 1 1 131,369,000 ........................ 127,764,132 4,410,660 0.0032929 0.1208 0.00329 0.12 127,652,000 4,380,000 347,000,000 2,600,000 1 1 60,300,000 232,000 59,404,386 208,000 0.1712 0.0800 0.17 0.080 58,990,000 208,000 890 375 1 1 643,500 135,850 560,144 236,016 629 629 630 630 560,700 236,250 3,800,000 1 941,640 840,033 .2211 .22 836,000 39.19 3,300 95 1 1 1 6,586,731 1,003,000 11,505,600 5,934,424 1,129,854 12,713,879 151,437 342 133,830 151,425 340 133,825 5,933,967 1,122,000 12,713,375 5 1 797,100 881,125 176,225 176,225 881,125 ****** Total Estimated Revenue to be Collected ...................... .............................. .......... 339,847,246 340,905,507 .................. .................. 340,512,502 ****** Total Revenue Requirement ...................................... Difference .................................. .............................. .............................. .......... .......... 339,844,000 3,246 339,844,000 1,061,507 .................. .................. .................. .................. 339,844,000 668,502 Years 1,800 31,000 12,000 6,300 4,200 490 460 65 1,505 889 1,492 3,132 3,143 29 182 127 134 137 181 283 379 2 10 10 10 10 10 10 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 595,000 3,000,000 2,550,000 780,000 420,000 165,000 153,000 274,700 3,410,900 1,212,750 4,033,300 8,466,575 10,437,175 17,700 138,750 196,850 6,161,700 5,809,800 4,909,450 4,524,000 1,805,000 23,750 3,640 300 64,500,000 34,000,000 1 1 1 1 38,800,000,000 36,500,000 PLMRS (Exclusive Use) .................. PLMRS (Shared use) ....................... Microwave ........................................ Marine (Ship) ................................... Aviation (Aircraft) ............................. Marine (Coast) ................................. Aviation (Ground) ............................. 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 1 ............... FM Construction Permits 1 ............... Satellite TV ....................................... Digital TV Markets 1–10 .................. Digital TV Markets 11–25 ................ Digital TV Markets 26–50 ................ Digital TV Markets 51–100 .............. Digital TV Remaining Markets ......... Digital TV Construction Permits 1 .... LPTV/Translators/Boosters/Class A TV ................................................. CARS Stations ................................. Cable TV Systems, including IPTV Direct Broadcast Satellite (DBS) ..... Interstate Telecommunication Service Providers ................................. Toll Free Numbers ........................... CMRS Mobile Services (Cellular/ Public Mobile) ............................... CMRS Messag. Services ................. BRS 2 ................................................ LMDS ............................................... asabaliauskas on DSK5VPTVN1PROD with PROPOSALS FY 2014 Revenue estimate FY 2015 Payment units Fee category Per 64 kbps Int’l Bearer Circuits ...... Terrestrial (Common) & Satellite (Common & Non-Common) 5 ....... Submarine Cable Providers (see chart in Table C) 3 5 ...................... Earth Stations 5 ................................ Space Stations (Geostationary) 5 ..... Space Stations (Non-Geostationary) 5 ................................... Pro-rated FY 2015 revenue requirement Notes on Table B. VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 E:\FR\FM\30JNP1.SGM 30JNP1 Expected FY 2015 revenue 37213 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules 1 The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted to set the regulatory fee to an amount no higher than the lowest licensed fee for that class of service. The reductions in the AM and FM Construction Permit revenues were so small that there was no need to offset them with increases in the revenue totals for AM and FM radio stations, respectively. Reductions in the Digital (VHF/UHF) Construction Permit revenues, however, were offset by increases in the revenue totals for various Digital television stations by market size, 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 C lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from the adoption of the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd 4208 (2009). 4 The fee amounts listed in the column entitled ‘‘Rounded New FY 2015 Regulatory Fee’’ constitute a weighted average media regulatory fee by class of service. The actual FY 2015 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table C. 5 As a continuation of our regulatory fee reform for the submarine cable and bearer circuit fee categories, the allocation percentage for these two categories, in relation to the satellite (GSO and NGSO) and earth station fee categories, was reduced by approximately 5 percent. This allocation reduction of 5 percent resulted in an increase in the allocation for the satellite and earth station fee categories, and a fee rate increase from FY 2014. TABLE C—PROPOSED REGULATORY FEES; FY 2015 SCHEDULE OF REGULATORY FEES [Regulatory fees for the first eight categories below are collected by the Commission in advance to cover the term of the license and are submitted at the time the application is filed.] Annual regulatory fee (U.S. $) Fee category PLMRS (per license) (Exclusive Use) (47 CFR part 90) ............................................................................................................... Microwave (per license) (47 CFR part 101) .................................................................................................................................. Marine (Ship) (per station) (47 CFR part 80) ................................................................................................................................ Marine (Coast) (per license) (47 CFR part 80) ............................................................................................................................. 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) ......................................................................................................................... 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 ..................................................................................................................................................... Digital TV (47 CFR part 73) VHF and UHF Commercial: Markets 1–10 .......................................................................................................................................................................... Markets 11–25 ........................................................................................................................................................................ Markets 26–50 ........................................................................................................................................................................ Markets 51–100 ...................................................................................................................................................................... Remaining Markets ................................................................................................................................................................. Construction Permits .............................................................................................................................................................. Satellite Television Stations (All Markets) ..................................................................................................................................... Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74) ........................................................................... CARS (47 CFR part 78) ................................................................................................................................................................ Cable Television Systems (per subscriber) (47 CFR part 76), Including IPTV ............................................................................ Direct Broadcast Service (DBS) (per subscriber) (as defined by section 602(13) of the Act) ..................................................... Interstate Telecommunication Service Providers (per revenue dollar) ......................................................................................... Toll Free (per toll free subscriber) (47 CFR section 52.101 (f) of the rules) ................................................................................ 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 ........................................................................................................................... 30. 20. 15. 35. 10. 10. 10. 35. .17. .08. 630. 630. 590. 750. 46,450. 42,850. 27,400. 16,150. 4,800. 4,800. 1,550. 435. 655. .95. .12. .00329. .12. 340. 133,825. 176,225. .22. See Table Below. asabaliauskas on DSK5VPTVN1PROD with PROPOSALS FY 2015 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 ............................................... VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 $775 1,550 2,325 3,475 5,025 7,750 9,300 PO 00000 Frm 00014 AM Class B AM Class C $645 1,300 1,625 2,750 4,225 6,500 7,800 Fmt 4702 Sfmt 4702 AM Class D $590 900 1,200 1,800 3,000 4,500 5,700 E:\FR\FM\30JNP1.SGM $670 1,000 1,675 2,025 3,375 5,400 6,750 30JNP1 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 37214 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules FY 2015 SCHEDULE OF REGULATORY FEES [International Bearer Circuits—Submarine Cable] Submarine cable systems (capacity as of December 31, 2014) 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 ........................................................................................................................................................................ In order to calculate individual service fees for FY 2015, we adjusted FY 2014 payment units for each service to more accurately reflect expected FY 2015 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 Wireless Telecommunications Bureau’s Numbering Resource Utilization Forecast. We sought verification for these estimates from multiple sources and, in all cases, we compared FY 2015 estimates with actual FY 2014 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 $9,475 18,925 37,850 75,725 151,425 with sufficient accuracy. These include an unknown number of waivers and/or exemptions that may occur in FY 2015 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 2015 payment units are based on FY 2014 actual payment units, it does not necessarily mean that our FY 2015 projection is exactly the same number as in FY 2014. We have either rounded the FY 2015 number or adjusted it slightly to account for these variables. TABLE D—SOURCES OF PAYMENT UNIT ESTIMATES FOR FY 2015 Fee category Sources of payment unit estimates Land Mobile (All), Microwave, Marine (Ship & Coast), Aviation (Aircraft & Ground), Domestic Public Fixed. 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 14 payment data. Based on WTB reports, and FY 14 payment data. Based on CDBS data, adjusted for exemptions, and actual FY 2014 payment units. Based on CDBS data, adjusted for exemptions, and actual FY 2014 payment units. Based on CDBS data, adjusted for exemptions, and actual FY 2014 payment units. Based on CDBS data, adjusted for exemptions, and actual FY 2014 payment units. CMRS Cellular/Mobile Services .......................... CMRS Messaging Services ................................ AM/FM Radio Stations ........................................ Digital TV Stations (Combined VHF/UHF units) AM/FM/TV Construction Permits ......................... LPTV, Translators and Boosters, Class A Television. BRS (formerly MDS/MMDS) ............................... LMDS .................................................................. asabaliauskas on DSK5VPTVN1PROD with PROPOSALS Initial Regulatory Flexibility Analysis 1. As required by the Regulatory Flexibility Act (RFA),54 the Commission prepared this Initial Regulatory Flexibility Analysis (IRFA) of the possible significant economic impact on small entities by the policies and rules proposed in the Notice of Proposed Rulemaking (NPRM). Written comments are requested on this IRFA. Comments must be identified as responses to the IRFA and must be filed by the deadline for comments on this NPRM. The Commission will send a copy of the NPRM, including the IRFA, to the Chief Counsel for Advocacy of the Small 54 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), Pub. L. 104–121, Title II, 110 Stat. 847 (1996). VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 Based on WTB reports and actual FY 2014 payment units. Based on WTB reports and actual FY 2014 payment units. Business Administration (SBA).55 In addition, the NPRM and IRFA (or summaries thereof) will be published in the Federal Register.56 A. Need for, and Objectives of, the NPRM 2. The NPRM seeks comment regarding the Commission’s proposed amendment of its schedule of regulatory fees in the amount of $339,844,000, the amount that Congress has required the Commission to recover. The Commission seeks to collect the necessary amount through its proposed schedule of regulatory fees in a manner that will not administratively burden the public. The Commission also seeks 55 5 U.S.C. 603(a). comment on a request by the Puerto Rico Broadcasters Association to provide regulatory fee relief to radio stations in Puerto Rico; revising the apportionment between International Bureau licensees to reduce the regulatory fees for the submarine cable/ bearer circuit category; revising the apportionment of regulatory fees among radio and television broadcasters; raising the earth station regulatory fees and lowering the regulatory fees for space stations; and other proposals for regulatory fee reform. B. Legal Basis 3. This action, including publication of proposed rules, is authorized under Sections (4)(i) and (j), 9, and 303(r) of 56 Id. PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 E:\FR\FM\30JNP1.SGM 30JNP1 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules the Communications Act of 1934, as amended.57 C. Description and Estimate of the Number of Small Entities to Which the Rules Will Apply 4. 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.58 The RFA generally defines the term ‘‘small entity’’ as having the same meaning as the terms ‘‘small business,’’ ‘‘small organization,’’ and ‘‘small governmental jurisdiction.’’ 59 In addition, the term ‘‘small business’’ has the same meaning as the term ‘‘small business concern’’ under the Small Business Act.60 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.61 5. Small Entities. Our actions, over time, may affect small entities that are not easily categorized at present. We therefore describe here, at the outset, three comprehensive small entity size standards that could be directly affected by the proposals under consideration.62 As of 2009, small businesses represented 99.9 percent of the 27.5 million businesses in the United States, according to the SBA.63 In addition, a ‘‘small organization is generally any notfor-profit enterprise which is independently owned and operated and not dominant in its field.64 Nationwide, as of 2007, there were approximately 1,621,215 small organizations.65 Finally the term ‘‘small governmental jurisdiction’’ is defined generally as ‘‘governments of cities, towns, townships, villages, school districts, or special districts, with a population of less than fifty thousand.66 Census 57 47 U.S.C. 154(i) and (j), 159, and 303(r). U.S.C. 603(b)(3). 59 5 U.S.C. 601(6). 60 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.’’ 61 15 U.S.C. 632. 62 See 5 U.S.C. 601(3)–(6). 63 See SBA, Office of Advocacy, ‘‘Frequently Asked Questions’’, available at https://www.sba.gov/ faqs/faqindex.cfm?arealD=24. 64 5 U.S.C. 601(4). 65 See Independent Sector, The New Nonprofit Almanac and Desk Reference (2010). 66 5 U.S.C. 601(5). asabaliauskas on DSK5VPTVN1PROD with PROPOSALS 58 5 VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 Bureau data for 2011 indicate that there were 90,056 local governmental jurisdictions in the United States.67 We estimate that, of this total, as many as 89,327 entities may qualify as ‘‘small governmental jurisdictions.’’ 68 Thus, we estimate that most local government jurisdictions are small. 6. Wired Telecommunications Carriers. The U.S. Census Bureau defines this industry as ‘‘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 communications networks. Transmission facilities may be based on a single technology or a combination of technologies. Establishments in this industry use the wired telecommunications network facilities that they operate to provide a variety of services, such as wired telephony services, including VoIP services, wired (cable) audio and video programming distribution, and wired broadband internet services. By exception, establishments providing satellite television distribution services using facilities and infrastructure that they operate are included in this industry.’’ 69 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.70 Census data for 2007 shows that there were 3,188 firms that operated that year. Of this total, 3,144 operated with fewer than 1,000 employees.71 Thus, under this size standard, the majority of firms in this industry can be considered small. 7. Local Exchange Carriers (LECs). Neither the Commission nor the SBA has developed a size standard for small businesses specifically applicable to local exchange services. The closest applicable NAICS Code category is for 67 See SBA, Office of Advocacy, ‘‘Frequently Asked Questions,’’ available at http.www.sba.gov/ sites/default/files.FAQ March 201_Opdf. 68 The 2011 Census Data for small governmental organizations are not presented based on the size of the population in each organization. As stated above, there were 90,056 local governmental organizations in 2011. As a basis for estimating how many of these 90,056 local organizations were small, we note that there were a total of 729 cities and towns (incorporated places and civil divisions) with populations over 50,000. See https:// factfinder.census.gov/faces/tableservices/jsf/pages/ productview.xhtml?src=bkmk. If we subtract the 729 cities and towns that exceed the 50,000 population threshold, we conclude that approximately 789, 237 are small. 69 See https://www.census.gov/cgi-bin/sssd/naics/ naicsrch. 70 See 13 CFR 120.201, NAICS Code 517110. 71 https://factfinder.census.gov/faces/ tableservices/jsf/pages/productview.xhtml?pid= ECN_2007_US_51SSSZ5&prodType=table. PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 37215 Wired Telecommunications Carriers as defined in paragraph 6 of this IRFA. Under that size standard, such a business is small if it has 1,500 or fewer employees.72 According to Commission data, census data for 2007 shows that there were 3,188 establishments that operated that year. Of this total, 3,144 operated with fewer than 1,000 employees.73 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 Notice of Proposed Rulemaking. 8. Incumbent LECs. Neither the Commission nor the SBA has developed a small business size standard specifically for incumbent local exchange services. The closest applicable NAICS Code category is Wired Telecommunications Carriers, as defined in paragraph 6 of this IRFA. Under that size standard, such a business is small if it has 1,500 or fewer employees.74 According to Commission data, 3,188 firms operated in that year. 1,307 carriers reported that they were incumbent local exchange service providers.75 Of this total, 3,144 operated with fewer than 1,000 employees.76 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 NPRM. Three hundred and seven (307) Incumbent Local Exchange Carriers reported that they were incumbent local exchange service providers.77 Of this total, an estimated 1,006 have 1,500 or fewer employees.78 9. 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 NAICS Code category is Wired Telecommunications Carriers, as defined in paragraph 6 of this IRFA. Under that size standard, such a business is small if it has 1,500 or fewer employees.79 U.S. Census data for 2007 indicate that 3,188 firms 72 13 CFR 121.201, NAICS code 517110. id. 74 13 CFR 121.201, NAICS code 517110. 75 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). 76 See id. 77 See id. 78 Id. 79 13 CFR 121.201, NAICS code 517110. 73 See E:\FR\FM\30JNP1.SGM 30JNP1 37216 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules asabaliauskas on DSK5VPTVN1PROD with PROPOSALS operated during that year. Of that number, 3,144 operated with fewer than 1,000 employees.80 Based on this data, the Commission concludes that the majority of Competitive LECs, CAPs, Shared-Tenant Service Providers, and Other Local Service Providers are small entities. 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.81 Of these 1,442 carriers, an estimated 1,256 have 1,500 or fewer employees. 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.82 In addition, 72 carriers have reported that they are Other Local Service Providers.83 Of this total, 70 have 1,500 or fewer employees.84 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 NPRM. 10. Interexchange Carriers (IXCs). Neither the Commission nor the SBA has developed a definition for Interexchange Carriers. The closest NAICS Code category is Wired Telecommunications Carriers as defined in paragraph 6 of this IRFA. The applicable size standard under SBA rules is that such a business is small if it has 1,500 or fewer employees.85 According to Commission data, 359 companies reported that their primary telecommunications service activity was the provision of interexchange services.86 Of this total, an estimated 317 have 1,500 or fewer employees and 42 have more than 1,500 employees.87 Consequently, the Commission estimates that the majority of interexchange service providers are small entities that may be affected by rules adopted pursuant to the Notice of Proposed Rulemaking. 11. 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 NAICS Code category for prepaid calling card 80 https://factfinder.census.gov/faces/ tableservices/jsf/pages/productview.xhtml?pid= ECN_2007_US_51SSSZ5&prodType=%20table. 81 See Trends in Telephone Service, at tbl. 5.3. 82 Id. 83 Id. 84 Id. 85 13 CFR 121.201, NAICS code 517110. 86 See Trends in Telephone Service, at tbl. 5.3. 87 Id. VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 providers is Telecommunications Resellers. This industry comprises establishments engaged in purchasing access and network capacity from owners and operators of telecommunications networks and reselling wired and wireless telecommunications services (except satellite) to businesses and households. Mobile virtual networks operators (MVNOs) are included in this industry.88 Under the applicable SBA size standard, such a business is small if it has 1,500 or fewer employees.89 U.S. Census data for 2007 show that 1,523 firms provided resale services during that year. Of that number, 1,522 operated with fewer than 1,000 employees.90 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.91 All 193 carriers have 1,500 or fewer employees.92 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 NPRM. 12. Local Resellers. The SBA has developed a small business size standard for the category of Telecommunications Resellers. Under that size standard, such a business is small if it has 1,500 or fewer employees.93 Census data for 2007 show that 1,523 firms provided resale services during that year. Of that number, 1,522 operated with fewer than 1,000 employees.94 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.95 Of this total, an estimated 211 have 1,500 or fewer employees.96 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 NPRM. 88 https://www.census.gov/cgi-bin/ssd/naics/ naicsrch. 89 13 CFR 121.201, NAICS code 517911. 90 https://factfinder.census.gov/faces/ tableservices/jsf/pages/productview.xhtml?pid= ECN_2007_US_51SSSZ5&prodType=table. 91 See Trends in Telephone Service, at tbl. 5.3. 92 Id. 93 13 CFR 121.201, NAICS code 517911. 94 Id. 95 See Trends in Telephone Service, at tbl. 5.3. 96 Id. PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 13. Toll Resellers. The Commission has not developed a definition for Toll Resellers. The closest NAICS Code Category is Telecommunications Resellers, and 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.97 Census data for 2007 show that 1,523 firms provided resale services during that year. Of that number, 1,522 operated with fewer than 1,000 employees.98 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.99 Of this total, an estimated 857 have 1,500 or fewer employees.100 Consequently, the Commission estimates that the majority of toll resellers are small entities that may be affected by our proposals in the NPRM. 14. 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 NAICS Code category is for Wired Telecommunications Carriers, as defined in paragraph 6 of this IRFA. Under that size standard, such a business is small if it has 1,500 or fewer employees.101 Census data for 2007 shows that there were 3,188 firms that operated that year. Of this total, 3,144 operated with fewer than 1,000 employees.102 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.103 Of these, an estimated 279 have 1,500 or fewer employees.104 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 NPRM. 97 13 CFR 121.201, NAICS code 517911. 98 Id. 99 Trends in Telephone Service, at tbl. 5.3. 100 Id. 101 13 CFR 121.201, NAICS code 517110. 102 Id. 103 Trends in Telephone Service, at tbl. 5.3. 104 Id. E:\FR\FM\30JNP1.SGM 30JNP1 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules asabaliauskas on DSK5VPTVN1PROD with PROPOSALS 15. Wireless Telecommunications Carriers (except Satellite). This industry comprises establishments engaged in operating and maintaining switching and transmission facilities to provide communications via the airwaves, such as cellular services, paging services, wireless internet access, and wireless video services.105 The appropriate size standard under SBA rules is that such a business is small if it has 1,500 or fewer employees. For this industry, Census Data for 2007 show that there were 1,383 firms that operated for the entire year. Of this total, 1,368 firms had fewer than 1,000 employees. Thus under this category and the associated size standard, the Commission estimates that the majority of wireless telecommunications carriers (except satellite) are small entities. Similarly, according to internally developed 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) services.106 Of this total, an estimated 261 have 1,500 or fewer employees.107 Consequently, the Commission estimates that approximately half of these firms can be considered small. Thus, using available data, we estimate that the majority of wireless firms can be considered small. 16. Cable Television and other Subscription Programming.108 Since 105 NAICS Code 517210. See https:// www.census.gov/cgi-bin/ssd/naics/naiscsrch. 106 Trends in Telephone Service, at tbl. 5.3. 107 Id. 108 In 2014, ‘‘Cable and Other Subscription Programming,’’ NAICS Code 515210, replaced a prior category, now obsolete, which was called ‘‘Cable and Other Program Distribution.’’ Cable and Other Program Distribution, prior to 2014, were placed under NAICS Code 517110, Wired Telecommunications Carriers. Wired Telecommunications Carriers is still a current and valid NAICS Code Category. Because of the similarity between ‘‘Cable and Other Subscription Programming’’ and ‘‘Cable and other Program Distribution,’’ we will, in this proceeding, continue to use Wired Telecommunications Carrier data based on the U.S. Census. The alternative of using data gathered under Cable and Other Subscription Programming (NAICS Code 515210) is unavailable to us for two reasons. First, the size standard established by the SBA for Cable and Other Subscription Programming is annual receipts of $38.5 million or less. Thus to use the annual receipts size standard would require the Commission either to switch from existing employee based size standard of 1,500 employees or less for Wired Telecommunications Carriers, or else would require the use of two size standards. No official approval of either option has been granted by the Commission as of the time of the release of this Regulatory Fees NPRM and its associated Report and Order and Order. Second, the data available under the size standard of $38.5 million dollars or less is not applicable at this time, because the only currently available U.S. Census data for annual receipts of all businesses operating in the NAICS Code category of 515210 (Cable and VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 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.’’ 109 The SBA has developed a small business size standard for this category, which is: All such firms having 1,500 or fewer employees.110 Census data for 2007 shows that there were 3,188 firms that operated that year. Of this total, 3,144 had fewer than 1,000 employees.111 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 NPRM. 17. 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.112 Industry data indicate that at the end of June 2012, of 1,141 cable companies were in operation; of this total, all but ten cable operators are small under this size standard.113 In addition, under the other Subscription Programming) consists only of total receipts for all businesses operating in this category in 2007 and of total annual receipts for all businesses operating in this category in 2012. Hence the data do not provide any basis for determining, for either year, how many businesses were small because they had annual receipts of $38.5 million or less. See https://factfinder.census.gov/faces/ tableservices/jsf/pages/productview.xhtml?pid= ECN_2012_US_51I2&prodType=table. 109 U.S. Census Bureau, 2007 NAICS Definitions, ‘‘517110 Wired Telecommunications Carriers’’ (partial definition), (Full definition stated in paragraph 6 of this IRFA) available at https:// www.census.gov/cgi-bin/sssd/naics/naicsrch. 110 13 CFR 121.201, NAICS code 517110. 111 https://factfinder.census.gov/faces/ tableservices/jsf/pages/productview.xhtml?pid= ECN_2007_US-51SSSZ5&prodType=Table. 112 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). 113 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. PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 37217 Commission’s rules, a ‘‘small system’’ is a cable system serving 15,000 or fewer subscribers.114 Industry data indicate that of 4,945 systems nationwide, 4,380 systems have fewer than 20,000 subscribers.115 Thus, under this second size standard, most cable systems are small and may be affected by rules adopted pursuant to the NPRM. 18. All Other Telecommunications. ‘‘All Other Telecommunications’’ is defined as follows: This U.S. industry is comprised of establishments that are primarily engaged in providing specialized telecommunications services, such as satellite tracking, communications telemetry, and radar station operation. This industry also includes establishments primarily engaged in providing satellite terminal stations and associated facilities connected with one or more terrestrial systems and capable of transmitting telecommunications to, and receiving telecommunications from, satellite systems. Establishments providing Internet services or voice over Internet protocol (VoIP) services via clientsupplied telecommunications connections are also included in this industry.116 The SBA has developed a small business size standard for ‘‘All Other Telecommunications,’’ which consists of all such firms with gross annual receipts of $32.5 million or less.117 For this category, census data for 2007 show that there were 2,383 firms that operated for the entire year. Of these firms, a total of 2,346 had gross annual receipts of less than $25 million.118 Thus, a majority of ‘‘All Other Telecommunications’’ firms potentially affected by the proposals in the NPRM can be considered small. D. Description of Projected Reporting, Recordkeeping and Other Compliance Requirements 19. This NPRM does not propose any changes to the Commission’s current information collection, reporting, recordkeeping, or compliance requirements. 114 See 47 CFR 76.901(c). 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. 116 https://www.census.gov/cgi-bin/ssssd/naics/ naicsrch. 117 13 CFR 121.201; NAICs Code 517919. 118 https://factfinder.census.gov/faces/ tableservices.jasf/pages/productview.xhtml?pid+ ECN_2007_US.51SSSZ4&prodType=table. 115 WARREN E:\FR\FM\30JNP1.SGM 30JNP1 37218 Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Proposed Rules E. Steps Taken To Minimize Significant Economic Impact on Small Entities, and Significant Alternatives Considered 20. 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.119 21. This NPRM seeks comment on the Commission’s regulatory fee collection for Fiscal Year 2015. Our regulatory fee rules now have a significantly higher de minimis threshold ($500) than in asabaliauskas on DSK5VPTVN1PROD with PROPOSALS 119 5 U.S.C. 603(c)(1)–(c)(4). VerDate Sep<11>2014 23:16 Jun 29, 2015 Jkt 235001 previous years ($10), which takes into account the differing needs of smaller entities. With the increase in the de minimis threshold, entities that have total annual fees below the threshold will not have to submit payment, which reduces the administrative burden on small entities, as well as on the Commission. The threshold was raised to $500 to reduce the financial and administrative burden on small entities, as well as the burden that the previous $10 threshold placed on the Commission to process payments, and when applicable, to pursue non-payers whose total regulatory fee obligation exceeded $10. In the future, the Commission may increase the de minimis threshold to a higher level. In addition, the Commission is also seeking comment on additional regulatory fee relief for the radio stations in Puerto Rico. F. Federal Rules That May Duplicate, Overlap, or Conflict With the Proposed Rules 22. None. PO 00000 Frm 00019 Fmt 4702 Sfmt 9990 VII. Ordering Clauses 23. 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, Notice of Proposed Rulemaking, and Order IS HEREBY ADOPTED. 24. IT IS FURTHER ORDERED that the Commission’s Consumer and Governmental Affairs Bureau, Reference Information Center, SHALL SEND a copy of this Notice of Proposed Rulemaking, including the Initial Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the U.S. Small Business Administration. Federal Communications Commission. Gloria J. Miles, Federal Register Liaison Officer. [FR Doc. 2015–15971 Filed 6–29–15; 8:45 am] BILLING CODE 6712–01–P E:\FR\FM\30JNP1.SGM 30JNP1

Agencies

FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 80, Number 125 (Tuesday, June 30, 2015)]
[Proposed Rules]
[Pages 37206-37218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15971]

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

47 CFR Part 1

[MD Docket Nos. 14-92; 15-121; 15-121; FCC 15-59]

Assessment and Collection of Regulatory Fees for Fiscal Year 2015

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Federal Communications Commission
(Commission) will revise its Schedule of Regulatory Fees in order to
recover an amount of $339,844,000 that Congress has required the
Commission to collect for fiscal year 2015.

DATES: Submit comments on or before June 22, 2015, and reply comments
on or before July 6, 2015.

ADDRESSES: You may submit comments, identified by MD Docket No. 15-121,
by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web site: https://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: FCC504@fcc.gov or phone: 202-418-
0530 or TTY: 202-418-0432.
E-mail: ecfs@fcc.gov. Include MD Docket No. 15-121 in the
subject line of the message.
Mail: Commercial overnight mail (other than U.S. Postal
Service Express Mail, and Priority Mail, must be sent to 9300 East
Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th
Street SW., Washington DC 20554.

For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.

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

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking (NPRM), Report and Order, and Order, FCC 15-59,
MD Docket No. 15-121, adopted on May 20, 2015 and released May 21,
2015. The full text of this document is available for inspection and
copying during normal business hours in the FCC Reference Center, 445
12th Street SW., Room CY-A257, Portals II, Washington, DC 20554, and
may also be purchased from the Commission's copy contractor, BCPI,
Inc., Portals II, 445 12th Street SW., Room CY-B402, Washington, DC
20554. Customers may contact BCPI, Inc. via their Web site, https://www.bcpi.com, or call 1-800-378-3160. This document is available in
alternative formats (computer diskette, large print, audio record, and
braille). Persons with disabilities who need documents in these formats
may contact the FCC by email: FCC504@fcc.gov or phone: 202-418-0530 or
TTY: 202-418-0432.

I. Procedural Matters

A. Ex Parte Rules Permit-But-Disclose Proceeding

1. The Notice of Proposed Rulemaking (FY 2015 NPRM), Report and
Order, and Order shall be treated as a ``permit-but-disclose''
proceeding in accordance with the Commission's ex parte rules. Persons
making ex parte presentations must file a copy of any written
presentation or a memorandum summarizing any oral presentation within
two business days after the presentation (unless a different deadline
applicable to the Sunshine period applies). Persons making oral ex
parte presentations are reminded that memoranda summarizing the
presentation must list all persons attending or otherwise participating
in the meeting at which the ex parte presentation was made, and
summarize all data presented and arguments made during the
presentation. If the presentation consisted in whole or in part of the
presentation of data or arguments already reflected in the presenter's
written comments, memoranda, or other filings in the proceeding, the
presenter may provide citations to such data or arguments in his or her
prior comments, memoranda, or other filings (specifying the relevant
page and/or paragraph numbers where such data or arguments can be
found) in lieu of summarizing them in the memorandum. Documents shown
or given to Commission staff during ex parte meetings are deemed to be
written ex parte presentations and must be filed consistent with
section 1.1206(b). In proceedings governed by section 1.49(f) or for
which the Commission has made available a method of electronic filing,
written ex parte presentations and memoranda summarizing oral ex parte
presentations, and all attachments thereto, must be filed through the
electronic comment filing system available for that proceeding, and
must

[[Page 37207]]

be filed in their native format (e.g., .doc, .xml, .ppt, searchable
.pdf). Participants in this proceeding should familiarize themselves
with the Commission's ex parte rules.

B. Comment Filing Procedures

2. Comments and Replies. Pursuant to sections 1.415 and 1.419 of
the Commission's rules, 47 CFR 1.415, 1.419, interested parties may
file comments and reply comments on or before the dates indicated on
the first page of this document. Comments may be filed using: (1) the
Commission's Electronic Comment Filing System (ECFS), (2) the Federal
Government's eRulemaking Portal, or (3) by filing paper copies. See
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121
(1998).
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: https://fjallfoss.fcc.gov/ecfs2/ or the Federal eRulemaking Portal: https://www.regulations.gov.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. If more than one
docket or rulemaking number appears in the caption of this proceeding,
filers must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail. All filings must be addressed to the Commission's Secretary,
Office of the Secretary, Federal Communications Commission.
[ssquf] All hand-delivered or messenger-delivered paper filings for
the Commission's Secretary must be delivered to FCC Headquarters at 445
12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours are
8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with
rubber bands or fasteners. Any envelopes must be disposed of before
entering the building.
[ssquf] Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
[ssquf] U.S. Postal Service first-class, Express, and Priority mail
must be addressed to 445 12th Street SW., Washington, DC 20554.
People with Disabilities: To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to fcc504@fcc.gov or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
3. Availability of Documents. Comments, reply comments, and ex
parte submissions will be available for public inspection during
regular business hours in the FCC Reference Center, Federal
Communications Commission, 445 12th Street SW., CY-A257, Washington, DC
20554. These documents will also be available free online, via ECFS.
Documents will be available electronically in ASCII, Word, and/or Adobe
Acrobat.
4. Accessibility Information. To request information in accessible
formats (computer diskettes, large print, audio recording, and
Braille), send an email to fcc504@fcc.gov or call the Commission's
Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice),
(202) 418-0432 (TTY). This document can also be downloaded in Word and
Portable Document Format (``PDF'') at: https://www.fcc.gov.

C. Initial Paperwork Reduction Act

5. This NPRM, Report and Order, and Order document solicits
possible proposed information collection requirements. The Commission,
as part of its continuing effort to reduce paperwork burdens, invites
the general public and the Office of Management and Budget (OMB) to
comment on the possible proposed information collection requirements
contained in this document, as required by the Paperwork Reduction Act
of 1995, Public Law 104-13. In addition, pursuant to the Small Business
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C.
3506(c)(4), the Commission seeks specific comment on how it can further
reduce the information collection burden for small business concerns
with fewer than 25 employees.

D. Initial Regulatory Flexibility Analysis

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

II. Introduction and Executive Summary

7. In this Notice of Proposed Rulemaking, we seek comment on the
Federal Communications Commission's (FCC's or Commission's) proposed
regulatory fees for fiscal year (FY) 2015 to collect $339,844,000.\1\
In addition, we seek comment on the Puerto Rico Broadcasters
Association's (PRBA's) request for relief from regulatory fee
assessments on radio and television stations in Puerto Rico due to
substantial financial hardships.\2\
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\1\ The proposed regulatory fees include a proposed five percent
reduction in regulatory fees for submarine cable systems and bearer
circuits, reflected in Table C.
\2\ See Letter from Messrs. Francisco Montero, Esq. and Jonathan
R. Markman, Esq., Counsel for the Puerto Rico Broadcasters
Association, filed in Docket No. 14-92, to Marlene Dortch,
Secretary, Federal Communications Commission (Dec. 10, 2014) (PRBA
Letter).
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III. Background

8. The Commission is required by Congress to assess regulatory fees
each year in an amount that can reasonably be expected to equal the
amount of its appropriation.\3\ Regulatory fees, assessed each fiscal
year, are to ``be derived by determining the full-time equivalent
number of employees performing'' these activities, ``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 . . .
.'' \4\ Regulatory fees recover direct costs, such as salary and
expenses; indirect costs, such as overhead functions; and support
costs, such as rent, utilities, or equipment.\5\ Regulatory fees also
cover the costs incurred in regulating entities that are statutorily
exempt from paying regulatory fees,\6\ entities whose regulatory fees
are waived,\7\ and entities that provide nonregulated services.
Congress sets the amount the Commission must collect each year in the
Commission's fiscal year appropriations, and section 9(a)(2) of the
Communications Act of 1934, as amended (Communications Act or Act)
requires the Commission to collect fees sufficient to offset the amount
appropriated.\8\ To calculate regulatory fees, the Commission allocates
the total collection target, as mandated by Congress each year, across
all regulatory fee categories. The allocation of fees to fee categories
is based on the Commission's calculation of full time

[[Page 37208]]

employees (FTEs) \9\ in each regulatory fee category. Historically, the
Commission has classified FTEs as ``direct'' if the employee is in one
of the four ``core'' bureaus; otherwise, that employee was considered
an ``indirect'' FTE.\10\ The total FTEs for each fee category includes
the direct FTEs associated with that category, plus a proportional
allocation of the indirect FTEs.
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\3\ 47 U.S.C. 159(b)(1)(B).
\4\ 47 U.S.C. 159(b)(1)(A).
\5\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2004, Report and Order, 69 FR 41028 at 41030, para. 11 (July 7,
2004) (FY 2004 Report and Order).
\6\ 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.
\7\ 47 CFR 1.1166.
\8\ 47 U.S.C. 159(a)(2).
\9\ 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.
\10\ The core bureaus are the Wireline Competition Bureau (172
FTEs), Wireless Telecommunications Bureau (91 FTEs), Media Bureau
(155 FTEs), and part of the International Bureau (28 FTEs), totaling
446 ``direct'' FTEs. The ``indirect'' FTEs are the employees from
the following bureaus and offices: Enforcement Bureau, Consumer &
Governmental Affairs Bureau, Public Safety and Homeland Security
Bureau, Chairman and Commissioners' offices, Office of the 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 1,037 ``indirect'' FTEs. These totals are as of
Oct. 1, 2014 and exclude auctions FTEs.
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9. Section 9 of the Communications Act requires the Commission to
make certain changes (i.e., mandatory amendments) to the regulatory fee
schedule if it ``determines that the Schedule requires amendment to
comply with the requirements'' of section 9(b)(1)(A).\11\ In addition,
the Commission must 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.'' \12\ These ``permitted amendments'' require
Congressional notification.\13\ The changes in fees resulting from both
mandatory and permitted amendments are not subject to judicial
review.\14\
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\11\ 47 U.S.C. 159(b)(3).
\12\ 47 U.S.C. 159(b)(3).
\13\ 47 U.S.C. 159(b)(4)(B).
\14\ 47 U.S.C. 159(b)(3). But see Comsat Corp. v. FCC, 114 F.3d
223, 227 (D.C. Cir. 1997) (``Where, as here, we find that the
Commission has acted outside the scope of its statutory mandate, we
also find that we have jurisdiction to review the Commission's
action.'')
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10. The Commission continues to improve the regulatory fee process
by ensuring a more equitable distribution of the regulatory fee burden
among categories of Commission licensees under the statutory framework
in section 9 of the Communications Act. For example, in 2013, the
Commission updated the FTE allocations to more accurately align
regulatory fees with the costs of Commission oversight and
regulation,\15\ as recommended in the GAO Report, a report issued by
the Government Accountability Office (GAO) in 2012.\16\ The Commission
also reallocated some FTEs from the International Bureau as
``indirect.'' \17\ Subsequently, in the FY 2014 Report and Order, the
Commission adopted the new toll free number regulatory fee category
\18\ and, in the accompanying FY 2014 Further Notice of Proposed
Rulemaking, the Commission sought additional comment on a new
regulatory fee category for DBS.\19\ In our Report and Order, we now
add a subcategory for DBS providers in the cable television and IPTV
regulatory fee category based on our finding that Media Bureau FTEs
work on issues and proceedings that include DBS as well as other
multichannel video programming distributors (MVPDs).
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\15\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2013, Report and Order, MD Docket No. 13-140, 78 FR 52433, at
52436-52437 at paras. 10-15 (August 23, 2013) (FY 2013 Report and
Order).
\16\ In 2012, the GAO concluded that the Commission should
conduct an overall analysis of the regulatory fee categories and
perform an updated FTE analysis by fee category. GAO ``Federal
Communications Commission Regulatory Fee Process Needs to be
Updated,'' GAO-12-686 (Aug. 2012) (GAO Report) at 36, (available at
https://www.gao.gov/products/GAO-12-686).
\17\ FY 2013 Report and Order, 78 FR 52433, 52436-52438 at
paras. 12-21, (August 23, 2013) (FY 2013 Report and Order).
\18\ FY 2014 Report and Order, 79 FR 54190 at 54195-54196 at
paras. 28-31, (September 11, 2014) (FY 2014 Report and Order).
\19\ FY 2014 Further Notice of Proposed Rulemaking, 79 FR 63883
at 63885-63886 at paras. 10-15, (October 27, 2014) (FY 2014 Further
Notice of Proposed Rulemaking).
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IV. Discussion

A. Notice of Proposed Rulemaking

1. Proposed Regulatory Fees
11. We propose to collect $339,844,000 in regulatory fees for FY
2015, pursuant to section 9 of the Communications Act.\20\ Of this
amount, we project approximately $21.3 million (6.28 percent of the
total FTE allocation) in fees from the International Bureau regulatees;
\21\ $69.3 million (20.40 percent of the total FTE allocation) in fees
from the Wireless Telecommunications Bureau regulatees; \22\ $131.1
million (38.57 percent of the total FTE allocation) from Wireline
Competition Bureau regulatees; \23\ and $118.1 million (34.75 percent
of the total FTE allocation) from the Media Bureau regulatees.\24\
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\20\ 47 U.S.C. 159.
\21\ Includes satellites, earth stations, submarine cable, and
bearer circuits.
\22\ Includes Commercial Mobile Radio Service (CMRS), CMRS
messaging, Broadband Radio Service/Local Multipoint Distribution
Service (BRS/LMDS), and multi-year wireless licensees.
\23\ Includes Interstate Telecommunications Service Providers
(ITSP) and toll free numbers.
\24\ Includes AM radio, FM radio, television, low power/FM,
cable and IPTV, DBS, and Cable Television Relay Service (CARS)
licenses.
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12. These regulatory fees are mandated by Congress and are
collected ``to recover the costs of . . . enforcement activities,
policy and rulemaking activities, user information services, and
international activities.'' \25\ We seek comment on the proposed
regulatory fee schedule in Table C.
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\25\ 47 U.S.C. 159(a).
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13. This proposed fee schedule in Table C includes a new regulatory
fee for DBS (a subcategory in the cable television and IPTV category)
adopted in the Report and Order portion of this document.\26\ We
estimate the number of payment units to be 34,000,000 and propose
setting the initial rate at 12 cents per year, or one cent per
month.\27\ Because DBS regulatory fees offset cable television and IPTV
fees, the cable television and IPTV rate would be reduced from $1.01 to
$0.95 per subscriber at this rate for DBS. We seek comment on this
rate. We also seek comment on whether setting the initial rate for DBS
at one cent per customer per month would address DIRECTV and DISH's
contention that a ``fee increase will cause rate shock.'' \28\
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\26\ See section III.B.3.
\27\ When the Commission added IPTV to the cable television
category, it set the initial rate for IPTV equal to the cable
television rate. See FY 2013 Report and Order, 78 FR 52433 at 52443-
52444 at paras. 35-36, (August 23, 2013) (FY 2013 Report and Order).
Last year, we invited ``further comment on whether regulatory fees
paid by DBS providers should be included in the cable television and
IPTV category and assessed in the same manner.'' FY 2014 NPRM, 79 FR
37982 at 37991 at para. 49 (July 3, 2014) (FY 2014 Notice of
Proposed Rulemaking). In the FY 2014 Further Notice of Proposed
Rulemaking, we sought comment on ``whether DBS providers should pay
a regulatory fee . . . at a much lower rate than that for other
MVPDs, such as one-tenth of the anticipate revenue if DBS were
combined with MVPD.'' FY 2014 Further Notice of Proposed Rulemaking,
79 FR 63883 at 63886 at para. 13 (October 27, 2014) (FY 2014 Further
Notice of Proposed Rulemaking).
\28\ DIRECTV and DISH Comments at 11.
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14. The proposed fee schedule also includes fees for toll free
numbers (a subcategory in the ITSP category) adopted in our FY 2014
Report and Order.\29\ We estimate the number of assessable toll-free
numbers to be 36.5 million and propose setting the rate at 12 cents per
year, or one cent per month.\30\ Because toll-free number

[[Page 37209]]

regulatory fees offset ITSP fees, the ITSP rate would be reduced from
0.00340 to 0.00329. We seek comment on this estimate and this rate.
---------------------------------------------------------------------------

\29\ See FY 2014 Report and Order, 79 FR 54190 at 54195 at
paras. 28-31 (September 11, 2014) (FY 2014 Report and Order).
\30\ When the Commission first sought comment on assessing
Responsible Organizations (or RespOrgs), it discussed a rate of one
penny per month per number and estimated that regulatory fees for
toll-free numbers would approximate $4 million at that rate. See FY
2014 NPRM, 79 FR 37982 at 37993 at para 57 (July 3, 2014) (FY 2014
Notice of Proposed Rulemaking).
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15. In addition, the annual regulatory fees eliminated in the FY
2014 Report and Order will no longer be included in the regulatory fee
schedule, i.e., the annual regulatory fee for Broadcast Auxiliaries and
Satellite TV Construction Permit, and one multi-year regulatory fee
category (218-219 MHz). The projected revenues that would otherwise
have been collected from the three regulatory fee categories that were
eliminated last year are allocated proportionally to their respective
service categories in the proposed regulatory fees in Table C.
Specifically, the projected revenues from the 218-219 MHz fee category
are proportionally allocated to the wireless service categories and the
Satellite Television Construction Permit and Broadcast Auxiliary fee
categories are proportionally allocated to the media service
categories.
16. We also seek comment on revising the apportionment between
International Bureau licensees to reduce the proportion paid by the
submarine cable/terrestrial and satellite bearer circuits fee
categories by approximately five percent. In the FY 2014 Report and
Order, we concluded that the regulatory fee assessment for the
submarine cable/terrestrial and satellite bearer circuits fee
categories did not fairly take into account the Commission's minimal
oversight and regulation of the industry and we reduced the regulatory
fee apportionment by five percent and stated that we would revisit the
issue to determine if additional adjustment is warranted.\31\
Currently, the submarine cable and bearer circuit category is allocated
31.36 percent of the International Bureau regulatory fees. We propose a
five percent decrease based on our tentative conclusion that the fee
remains excessive relative to the minimal Commission oversight and
regulation of this industry.
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\31\ We adopted a reallocation for submarine cable systems and
bearer circuits in the FY 2014 Report and Order and indicated that
we would revisit this issue in future proceedings to determine if
additional adjustment would be warranted. See FY 2014 Report and
Order, 79 FR 54190 at 54192-54193 at para. 14 (September 11, 2014)
(FY 2014 Report and Order).
---------------------------------------------------------------------------

17. We also seek comment on whether the Commission should review
the apportionment of regulatory fees among broadcasters. First, we
expect to collect $28,356,435 from radio broadcasters and $23,650,250
from television broadcasters in fiscal year 2015. We estimate that
10,226 radio broadcasters and 4,754 television broadcasters will pay
these regulatory fees \32\ and note that among the broadcasters that
are statutorily exempt from paying fees, noncommercial education (NCE)
radio stations significantly outnumber NCE television stations.\33\
Nonetheless, should the Commission reexamine the number of FTEs devoted
to the regulation of radio versus television broadcasters and adjust
the fee paid by radio and television broadcasters to more accurately
take into account factors related to ``the benefits provided to the
payor of the fee by the Commission's activities''? \34\ Second, we
currently assess regulatory fees on television broadcasters based on
the ranking of the market they serve (market nos. 1-10; 11-25; 26-50;
51-100; >100) but assess regulatory fees on radio broadcasters based on
the population they serve (<25,000; 25,001-75,000; 75,001-150,000;
150,001-500,000; 500,001-1,200,000; 1,200,001-3,000,000; >3,000,000).
Do the dividing points for higher fee levels for both television and
radio broadcasters remain appropriate? Should we adjust the dividing
points for radio broadcasters to account for demographic change? Should
we assess radio broadcasters based on market served rather than
population served, which may provide more stability and predictability
for radio broadcasters? Third, we currently divide radio broadcasters
into six categories by type and class of service (AM class A; AM class
B; AM class C; AM class D; FM classes A, B1, & C3; FM classes B, C, C0,
C1, & C2). We note that FM class B stations pay more than FM class A
stations at every population level because FM class A stations serve
the smallest areas of all FM station classes, whereas this relationship
is inverted among the AM stations since AM class A stations serve the
largest areas among AM stations. But no single ratio apportions
regulatory fees among AM and FM radio categories; for example, AM class
A stations sometimes pay more than FM class A stations (when they serve
fewer than 500,000 people) but other times pay more (when they serve
more than 500,000 people).\35\ Should we consolidate these categories
and reapportion the regulatory fees paid by each category such that
regulatory fees collected are based either on population served or rank
of market served? We seek comment on these and related questions
concerning the apportionment of regulatory fees among broadcasters. We
tentatively conclude that changes made to the assessment of regulatory
fees on broadcasters would constitute a permitted amendment \36\ and
therefore would not likely apply to FY 2015 regulatory fees.
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\32\ See Table B, AM Class, A, B, C, D, and FM categories, total
10,226; TV digital markets 1-100 + remaining markets + the LPTV
category, total 4,754.
\33\ As of March 31, 2015, there were 5110 licensed NCE
(including low power FM) radio stations and 395 licensed NCE
television stations. See Broadcast Station Totals as of March 31,
2015, News Release (rel. Apr. 9, 2015).
\34\ 47 U.S.C. 159(b)(1)(A) (providing for adjustment of the FTE
allocation to ``take into account factors that are reasonably
related to the benefits provided to the payor of the fee by the
Commission's activities, including such factors as service area
coverage, shared use versus exclusive use, and other factors that
the Commission determines are necessary in the public interest.'')
\35\ Or compare AM class B and class D stations. In areas with
fewer than 25,000 people, class B stations pay $25 less than class D
stations. In areas with 25,001-75,000, they pay $300 more. Less
again at 75,001-150,000 people; more again above that. See Table C.
\36\ 47 U.S.C. 159(b)(3).
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18. In addition, we seek comment generally on other regulatory fee
reform measures we can adopt.\37\ For example, should we raise the
earth station regulatory fees and thereby reduce satellite fees? \38\
Are there specific divisions within bureaus or offices that should be
allocated as direct instead of indirect? \39\ We welcome comment on
these issues and other proposals for regulatory fee reform.
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\37\ These issues here were raised in an ex parte filed by SIA.
See Letter from Tom Stroup, President, Satellite Industry
Association, to Marlene H. Dortch, Secretary, FCC (Apr. 30, 2015).
We welcome any suggestions from commenters on regulatory fee reform.
\38\ Earth station fees were increased by 7.5 percent last year.
See FY 2014 Report and Order, 79 FR 54190 at 54193 at para. 15
(September 11, 2014) (FY 2014 Report and Order).
\39\ This issue was raised previously; see FY 2014 NPRM, 79 FR
37982 at 37987-37988 at paras. 28-33 (July 3, 2014) (FY 2014 Notice
of Proposed Rulemaking).
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2. Puerto Rico Broadcasters Association's Request for Regulatory Fee
Relief
19. On December 10, 2014, PRBA filed a letter seeking regulatory
fee relief for the radio broadcasters in the Commonwealth of Puerto
Rico. PRBA requests that the Commission take into consideration
significant population declines and economic factors when determining
the regulatory fees owed by radio station operators in Puerto Rico. In
particular, PRBA requests that the Commission use more recent figures
to determine the radio station population

[[Page 37210]]

count for radio stations in Puerto Rico.\40\ PRBA argues that economic
challenges \41\ and population decline \42\ in Puerto Rico warrant
regulatory relief. Specifically, PRBA contends that Puerto Rico has an
unprecedented unemployment rate of almost 14 percent, well above the
overall United States unemployment rate and much higher than the two
states with the next highest unemployment rates.\43\ In addition, PRBA
asserts that the per capita income in Puerto Rico \44\ is half of the
per capita income of the state with the lowest per capita income \45\
and over one-third of the households in Puerto Rico receive food
stamps.\46\ PRBA argues that due to the economic hardship in the
territory, the population has decreased in the past nine years by
almost six percent because of migration to the mainland United States
and a declining birthrate.\47\ Finally, PRBA contends that the radio
listening market is limited because it is restricted to listeners
within the boundaries of the island.\48\
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\40\ PRBA Letter at 2-4.
\41\ PRBA Letter at 2-3.
\42\ PRBA Letter at 3-4.
\43\ PRBA Letter at 2; https://www.ncsl.org/research/labor-and-employment/state-unemployment-update.aspx for the December 2014
unemployment rates for each state. The unemployment rate for Puerto
Rico is 13.7 percent; the next highest unemployment rates are those
of the District of Columbia (7.3 percent), Mississippi (7.2
percent), and California, (7 percent).
\44\ See https://www.census.gov/newsroom/press-releases/2014/cb14-17.html (Puerto Rico median household income 2010-2012 was
$19,518.)
\45\ See https://www.census.gov/hhes/www/income/data/statemedian/ (Mississippi median income 2010-2013 was $41,664).
\46\ PRBA Letter at 2-3. Instead of the Supplemental Nutrition
Assistance Program (SNAP), qualifying Puerto Rican residents receive
Nutrition Assistance for Puerto Rico (NAP).
\47\ PRBA Letter at 3.
\48\ PRBA Letter at 5.
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20. Every ten years the Commission updates its radio station
population counts to reflect nationwide changes in the population using
the ``block level census data'' from the U.S. Census. PRBA asks the
Commission to examine population data every five years instead of every
10 years to increase the accuracy of the population counts in Puerto
Rico. We are unable to adopt PRBA's suggestion because the ``block
level census data'' is only available from the U.S. Census Bureau every
10 years. Further, even if such figures were available every five
years, they would be unlikely to provide a basis for fee relief for
radio stations in Puerto Rico because fees on AM and FM radio stations
are not assessed at granular levels but instead over a wide strata of
the population.\49\
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\49\ The regulatory fee rate starts at population counts of
25,000 and below, and then increases to population counts of 25,001-
75,000; 75,001-150,000; 150,001-500,000; 500,001-1,200,000;
1,200,001-3,000,000; and above 3,000,000.
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21. PRBA requests that the Commission provide relief through the
reduction of regulatory fees for Puerto Rico radio broadcasters due to
economic hardship, unique geography, and declining population. We seek
comment on this proposal and on whether the unique circumstances
described by PRBA should result in one of the following actions: (i)
Moving the Puerto Rico market stations to a different rate (e.g.,
reducing them down to a lower population strata) because of the
downward trend in the population and other factors; (ii) creating a
separate fee category for the Puerto Rico market at a lower rate; or
(iii) adopting a special provision in our rules for economically
depressed geographic areas to seek a ``fast track'' waiver of
regulatory fees. For any of these actions, commenters should also
discuss how such a process could satisfy the requirement to demonstrate
that compelling and extraordinary circumstances outweigh the public
interest in recouping the Commission's regulatory costs.
22. We recognize that fee relief is ordinarily processed through a
waiver request.\50\ PRBA has not identified whether every station in
Puerto Rico is financially unable to pay the regulatory fee, and
although we recognize that preparing and filing waiver requests,
including supporting financial information for each radio station in
Puerto Rico, may be administratively and financially burdensome,
granting across-the-board relief for Puerto Rican stations may shift
the burden of regulatory fees from stations better able to afford them
to those less able. Therefore, we also seek comment on whether the
ordinary waiver process is sufficient here, making clear that a
regulatee may raise the same issues that PRBA has raised whenever it
files a waiver request.
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\50\ Fees may be waived, reduced or deferred in specific
instances, on a case-by-case basis, where good cause is shown and
where waiver, reduction or deferral of the fee would promote the
public interest. 47 U.S.C. 159(d); 47 CFR 1.1166. Fee relief may be
granted based on a ``sufficient showing of financial hardship.'' See
Implementation of Section 9 of the Communications Act, Assessment
and Collection of Regulatory Fees for the 1994 Fiscal Year,
Memorandum Opinion and Order, 60 FR 34902 at 34903 at para. 12 (July
5, 1995) (FY 1994 Regulatory Fees Memorandum of Opinion and Order).
In such matters, however, ``[m]ere allegations or documentation of
financial loss, standing alone,'' do not suffice and ``it [is]
incumbent upon each regulatee to fully document its financial
position and show that it lacks sufficient funds to pay the
regulatory fee and to maintain its service to the public.'' Id.
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V. Procedural Matters

A. Payment of Regulatory Fees

1. Revised Credit Card Transaction Levels
23. In accordance with U.S. Treasury Announcement No. A-2014-04
(July 2014), the amount that can be charged on a credit card for
transactions with federal agencies has been reduced to $24,999.99.\51\
Previously, the credit card limit was $49,999.99. This lower
transaction amount is effective June 1, 2015. Transactions greater than
$24,999.99 will be rejected. This limit applies to single payments or
bundled payments of more than one bill. Multiple transactions to a
single agency in one day may be aggregated and treated as a single
transaction subject to the $24,999.99 limit. Customers who wish to pay
an amount greater than $24,999.99 should consider available electronic
alternatives such as Visa or MasterCard debit cards, Automated Clearing
House (ACH) debits from a bank account, and wire transfers. Each of
these payment options is available after filing regulatory fee
information in Fee Filer. Further details will be provided regarding
payment methods and procedures at the time of FY 2015 regulatory fee
collection.
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\51\ Treasury Financial Manual, Announcement No. A-2014-04 (July
2014).
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24. Customers who owe an amount on a bill, debt, or other
obligation due to the federal government are prohibited from splitting
the total amount due into multiple payments. Splitting an amount owed
into several payment transactions violates the credit card network and
Fiscal Service rules. An amount owed that exceeds the Fiscal Service
maximum dollar amount, $24,999.99, may not be split into two or more
payment transactions in the same day by using one or multiple cards.
Also, an amount owed that exceeds the Fiscal Service maximum dollar
amount may not be split into two or more transactions over multiple
days by using one or more cards.
2. De Minimis Regulatory Fees
25. Regulatees whose total FY 2015 regulatory fee liability,
including all categories of fees for which payment is due, is $500 or
less, are exempted from payment of FY 2015 regulatory fees. The de
minimis threshold of $500 or less applies only to filers of annual
regulatory fees (not regulatory fees paid through multi-year filings)
between October 1 and September 30. If the sum

[[Page 37211]]

total of all annual regulatory fee obligations is $500 or less, the
regulatee is exempt from paying regulatory fees for that fiscal year.
This de minimis status is not a permanent exemption from regulatory
fees. Rather, each regulatee will need to reevaluate their total fee
liability each fiscal year to determine whether they meet the de
minimis exemption.
3. Standard Fee Calculations and Payment Dates
26. 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, 2014 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, 2014. In
instances where a permit or license is transferred or assigned after
October 1, 2014, 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,
2014. In instances where a permit or license is transferred or assigned
after October 1, 2014, 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.\52\
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\52\ 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, 2014. The number of subscribers, units,
or telephone numbers on December 31, 2014 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, 2014,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
The first eight regulatory fee categories in our Schedule
of Regulatory Fees (see Table C) pay ``small multi-year wireless
regulatory fees.'' Entities pay these regulatory fees in advance for
the entire amount period covered by the five-year or ten-year terms of
their initial licenses, and pay regulatory fees again only when the
license is renewed or a new license is obtained. We include these fee
categories in our rulemaking (see Table C) to publicize our estimates
of the number of ``small multi-year wireless'' licenses that will be
renewed or newly obtained in FY 2015.
Multichannel Video Programming Distributor Services (cable
television operators, IPTV providers, DBS providers, and CARS
licensees): Regulatory fees must be paid for the number of basic cable
tier subscribers, IPTV subscribers, and DBS subscribers as of December
31, 2014.\53\ Regulatory fees also must be paid for CARS licenses that
were granted on or before October 1, 2014. In instances where a permit
or license is transferred or assigned after October 1, 2014,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
---------------------------------------------------------------------------

\53\ Cable television system operators, DBS providers, and IPTV
providers 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/providers may
base their count on ``a typical day in the last full week'' of
December 2014, rather than on a count as of December 31, 2014.
---------------------------------------------------------------------------

International Services: Regulatory fees must be paid for
(1) earth stations and (2) geostationary orbit space stations and non-
geostationary orbit satellite systems that were licensed and
operational on or before October 1, 2014. In instances where a permit
or license is transferred or assigned after October 1, 2014,
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, 2014. In instances where a license is transferred or assigned after
October 1, 2014, responsibility for payment rests with the holder of
the license as of the fee due date. For regulatory fee purposes, the
allocation in FY 2015 will be 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, 2014 in any
terrestrial or satellite transmission facility for the provision of
service to an end user or resale carrier. When calculating the number
of such active circuits, the facilities-based common carriers must
include circuits held by themselves or their affiliates. In addition,
non-common carrier satellite operators must pay a fee for each circuit
they and their affiliates hold and each circuit sold or leased to any
customer, 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, 2014. 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, 2014,
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 2015 will remain at 87.6 percent for submarine cable
and 12.4 percent for satellite/terrestrial facilities.

VI. Additional Tables

Table A--List of Commenters
------------------------------------------------------------------------
Commenter Abbreviation
------------------------------------------------------------------------
Initial Comments
------------------------------------------------------------------------
DIRECTV, LLC and DISH Network, DIRECTV and DISH.
L.L.C..
ITTA--The Voice of Mid-Size ITTA.
Communications Companies.
National Cable and NCTA and ACA.
Telecommunications Association
and the American Cable
Association.
Satellite Industry Association.... SIA.
SMS/800, Inc...................... SMS/800.
------------------------------------------------------------------------

[[Page 37212]]

Reply Comments
------------------------------------------------------------------------
CenturyLink....................... CenturyLink.
DIRECTV, LLC and DISH Network, DIRECTV and DISH.
L.L.C..
Hypercube Telecom, LLC............ Hypercube.
National Cable and NCTA and ACA.
Telecommunications Association
and the American Cable
Association.
------------------------------------------------------------------------

Table B--Calculation of FY 2015 Revenue Requirements and Pro-Rata Fees
[Regulatory fees for the first seven categories below are collected by the Commission in advance to cover the term of the license and are submitted at
the time the application is filed.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Computed Rounded FY
FY 2015 Payment FY 2014 Pro-rated FY FY 2015 2015 Expected FY
Fee category units Years Revenue 2015 revenue regulatory regulatory 2015 revenue
estimate requirement fee fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)................................ 1,800 10 595,000 543,780 30 30 540,000
PLMRS (Shared use)................................... 31,000 10 3,000,000 3,121,700 10 10 3,100,000
Microwave............................................ 12,000 10 2,550,000 2,537,640 20 20 2,520,000
Marine (Ship)........................................ 6,300 10 780,000 951,615 15 15 945,000
Aviation (Aircraft).................................. 4,200 10 420,000 422,940 10 10 420,000
Marine (Coast)....................................... 490 10 165,000 172,701 35 35 171,500
Aviation (Ground).................................... 460 10 153,000 162,127 35 35 161,000
AM Class A \4\....................................... 65 1 274,700 278,184 4,280 4,275 277,875
AM Class B \4\....................................... 1,505 1 3,410,900 3,447,842 2,291 2,300 3,461,500
AM Class C \4\....................................... 889 1 1,212,750 1,230,932 1,385 1,375 1,222,375
AM Class D \4\....................................... 1,492 1 4,033,300 4,169,282 2,794 2,800 4,177,600
FM Classes A, B1 & C3 \4\............................ 3,132 1 8,466,575 8,594,443 2,744 2,750 8,613,000
FM Classes B, C, C0, C1 & C2 \4\..................... 3,143 1 10,437,175 10,444,503 3,323 3,325 10,450,475
AM Construction Permits \1\.......................... 29 1 17,700 17,110 590 590 17,110
FM Construction Permits \1\.......................... 182 1 138,750 136,500 750 750 136,500
Satellite TV......................................... 127 1 196,850 198,228 1,561 1,550 196,850
Digital TV Markets 1-10.............................. 134 1 6,161,700 6,223,883 46,447 46,450 6,224,300
Digital TV Markets 11-25............................. 137 1 5,809,800 5,871,584 42,858 42,850 5,870,450
Digital TV Markets 26-50............................. 181 1 4,909,450 4,959,846 27,402 27,400 4,959,400
Digital TV Markets 51-100............................ 283 1 4,524,000 4,570,532 16,150 16,150 4,570,450
Digital TV Remaining Markets......................... 379 1 1,805,000 1,822,393 4,808 4,800 1,819,200
Digital TV Construction Permits \1\.................. 2 1 23,750 9,600 4,800 4,800 9,600
LPTV/Translators/Boosters/Class A TV................. 3,640 1 1,570,300 1,576,156 433 435 1,583,400
CARS Stations........................................ 300 1 196,625 196,365 655 655 196,500
Cable TV Systems, including IPTV..................... 64,500,000 1 64,746,000 61,054,410 .94658 .95 61,275,000
Direct Broadcast Satellite (DBS)..................... 34,000,000 1 .............. 4,108,560 .12 .12 4,080,000
Interstate Telecommunication Service Providers....... 38,800,000,000 1 131,369,000 127,764,132 0.0032929 0.00329 127,652,000
Toll Free Numbers.................................... 36,500,000 1 .............. 4,410,660 0.1208 0.12 4,380,000
CMRS Mobile Services (Cellular/Public Mobile)........ 347,000,000 1 60,300,000 59,404,386 0.1712 0.17 58,990,000
CMRS Messag. Services................................ 2,600,000 1 232,000 208,000 0.0800 0.080 208,000
BRS \2\.............................................. 890 1 643,500 560,144 629 630 560,700
LMDS................................................. 375 1 135,850 236,016 629 630 236,250
Per 64 kbps Int'l Bearer Circuits.................... 3,800,000 1 941,640 840,033 .2211 .22 836,000
Terrestrial (Common) & Satellite (Common & Non-
Common) \5\.........................................
Submarine Cable Providers (see chart in Table C) \3\ 39.19 1 6,586,731 5,934,424 151,437 151,425 5,933,967
\5\.................................................
Earth Stations \5\................................... 3,300 1 1,003,000 1,129,854 342 340 1,122,000
Space Stations (Geostationary) \5\................... 95 1 11,505,600 12,713,879 133,830 133,825 12,713,375
Space Stations (Non-Geostationary) \5\............... 5 1 797,100 881,125 176,225 176,225 881,125
--------------------------------------------------------------------------------------------------
****** Total Estimated Revenue to be Collected... ................. ...... 339,847,246 340,905,507 .......... .......... 340,512,502
--------------------------------------------------------------------------------------------------
****** Total Revenue Requirement................. ................. ...... 339,844,000 339,844,000 .......... .......... 339,844,000
Difference....................................... ................. ...... 3,246 1,061,507 .......... .......... 668,502
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table B.

[[Page 37213]]

\1\ The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted to set the regulatory fee to an
amount no higher than the lowest licensed fee for that class of service. The reductions in the AM and FM Construction Permit revenues were so small
that there was no need to offset them with increases in the revenue totals for AM and FM radio stations, respectively. Reductions in the Digital (VHF/
UHF) Construction Permit revenues, however, were offset by increases in the revenue totals for various Digital television stations by market size,
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 C lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from
the adoption of the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd 4208 (2009).
\4\ The fee amounts listed in the column entitled ``Rounded New FY 2015 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
service. The actual FY 2015 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table C.
\5\ As a continuation of our regulatory fee reform for the submarine cable and bearer circuit fee categories, the allocation percentage for these two
categories, in relation to the satellite (GSO and NGSO) and earth station fee categories, was reduced by approximately 5 percent. This allocation
reduction of 5 percent resulted in an increase in the allocation for the satellite and earth station fee categories, and a fee rate increase from FY
2014.

Table C--Proposed Regulatory Fees; FY 2015 Schedule of Regulatory Fees
[Regulatory fees for the first eight categories below are collected by
the Commission in advance to cover the term of the license and are
submitted at the time the application is filed.]
------------------------------------------------------------------------
Annual regulatory fee
Fee category (U.S. $)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR 30.
part 90).
Microwave (per license) (47 CFR part 101)... 20.
Marine (Ship) (per station) (47 CFR part 80) 15.
Marine (Coast) (per license) (47 CFR part 35.
80).
Rural Radio (47 CFR part 22) (previously 10.
listed under the Land Mobile category).
PLMRS (Shared Use) (per license) (47 CFR 10.
part 90).
Aviation (Aircraft) (per station) (47 CFR 10.
part 87).
Aviation (Ground) (per license) (47 CFR part 35.
87).
CMRS Mobile/Cellular Services (per unit) (47 .17.
CFR parts 20, 22, 24, 27, 80 and 90).
CMRS Messaging Services (per unit) (47 CFR .08.
parts 20, 22, 24 and 90).
Broadband Radio Service (formerly MMDS/MDS) 630.
(per license) (47 CFR part 27).
Local Multipoint Distribution Service (per 630.
call sign) (47 CFR, part 101).
AM Radio Construction Permits............... 590.
FM Radio Construction Permits............... 750.
Digital TV (47 CFR part 73) VHF and UHF ..........................
Commercial:
Markets 1-10............................ 46,450.
Markets 11-25........................... 42,850.
Markets 26-50........................... 27,400.
Markets 51-100.......................... 16,150.
Remaining Markets....................... 4,800.
Construction Permits.................... 4,800.
Satellite Television Stations (All Markets). 1,550.
Low Power TV, Class A TV, TV/FM Translators 435.
& Boosters (47 CFR part 74).
CARS (47 CFR part 78)....................... 655.
Cable Television Systems (per subscriber) .95.
(47 CFR part 76), Including IPTV.
Direct Broadcast Service (DBS) (per .12.
subscriber) (as defined by section 602(13)
of the Act).
Interstate Telecommunication Service .00329.
Providers (per revenue dollar).
Toll Free (per toll free subscriber) (47 CFR .12.
section 52.101 (f) of the rules).
Earth Stations (47 CFR part 25)............. 340.
Space Stations (per operational station in 133,825.
geostationary orbit) (47 CFR part 25) also
includes DBS Service (per operational
station) (47 CFR part 100).
Space Stations (per operational system in 176,225.
non-geostationary orbit) (47 CFR part 25).
International Bearer Circuits--Terrestrial/ .22.
Satellites (per 64KB circuit).
International Bearer Circuits--Submarine See Table Below.
Cable.
------------------------------------------------------------------------

FY 2015 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
FM Classes B,
Population served AM Class A AM Class B AM Class C AM Class D FM Classes A, C, C0, C1 &
B1 & C3 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
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 37214]]

FY 2015 Schedule of Regulatory Fees
[International Bearer Circuits--Submarine Cable]
------------------------------------------------------------------------
Submarine cable systems (capacity as of December 31,
2014) Fee amount
------------------------------------------------------------------------
<2.5 Gbps............................................ $9,475
2.5 Gbps or greater, but less than 5 Gbps............ 18,925
5 Gbps or greater, but less than 10 Gbps............. 37,850
10 Gbps or greater, but less than 20 Gbps............ 75,725
20 Gbps or greater................................... 151,425
------------------------------------------------------------------------

In order to calculate individual service fees for FY 2015, we
adjusted FY 2014 payment units for each service to more accurately
reflect expected FY 2015 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 Wireless Telecommunications
Bureau's Numbering Resource Utilization Forecast.
We sought verification for these estimates from multiple sources
and, in all cases, we compared FY 2015 estimates with actual FY 2014
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 2015 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 2015 payment units are based on FY 2014
actual payment units, it does not necessarily mean that our FY 2015
projection is exactly the same number as in FY 2014. We have either
rounded the FY 2015 number or adjusted it slightly to account for these
variables.

Table D--Sources of Payment Unit Estimates for FY 2015
------------------------------------------------------------------------
Fee category Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, Based on Wireless Telecommunications
Marine (Ship & Coast), Aviation Bureau (WTB) projections of new
(Aircraft & Ground), Domestic applications and renewals taking
Public Fixed. 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.
CMRS Cellular/Mobile Services..... Based on WTB projection reports, and
FY 14 payment data.
CMRS Messaging Services........... Based on WTB reports, and FY 14
payment data.
AM/FM Radio Stations.............. Based on CDBS data, adjusted for
exemptions, and actual FY 2014
payment units.
Digital TV Stations (Combined VHF/ Based on CDBS data, adjusted for
UHF units). exemptions, and actual FY 2014
payment units.
AM/FM/TV Construction Permits..... Based on CDBS data, adjusted for
exemptions, and actual FY 2014
payment units.
LPTV, Translators and Boosters, Based on CDBS data, adjusted for
Class A Television. exemptions, and actual FY 2014
payment units.
BRS (formerly MDS/MMDS)........... Based on WTB reports and actual FY
LMDS.............................. 2014 payment units.
Based on WTB reports and actual FY
2014 payment units.
------------------------------------------------------------------------

Initial Regulatory Flexibility Analysis

1. As required by the Regulatory Flexibility Act (RFA),\54\ the
Commission prepared this Initial Regulatory Flexibility Analysis (IRFA)
of the possible significant economic impact on small entities by the
policies and rules proposed in the Notice of Proposed Rulemaking
(NPRM). Written comments are requested on this IRFA. Comments must be
identified as responses to the IRFA and must be filed by the deadline
for comments on this NPRM. The Commission will send a copy of the NPRM,
including the IRFA, to the Chief Counsel for Advocacy of the Small
Business Administration (SBA).\55\ In addition, the NPRM and IRFA (or
summaries thereof) will be published in the Federal Register.\56\
---------------------------------------------------------------------------

\54\ 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), Pub. L. 104-121, Title II, 110 Stat. 847 (1996).
\55\ 5 U.S.C. 603(a).
\56\ Id.
---------------------------------------------------------------------------

A. Need for, and Objectives of, the NPRM

2. The NPRM seeks comment regarding the Commission's proposed
amendment of its schedule of regulatory fees in the amount of
$339,844,000, the amount that Congress has required the Commission to
recover. The Commission seeks to collect the necessary amount through
its proposed schedule of regulatory fees in a manner that will not
administratively burden the public. The Commission also seeks comment
on a request by the Puerto Rico Broadcasters Association to provide
regulatory fee relief to radio stations in Puerto Rico; revising the
apportionment between International Bureau licensees to reduce the
regulatory fees for the submarine cable/bearer circuit category;
revising the apportionment of regulatory fees among radio and
television broadcasters; raising the earth station regulatory fees and
lowering the regulatory fees for space stations; and other proposals
for regulatory fee reform.

B. Legal Basis

3. This action, including publication of proposed rules, is
authorized under Sections (4)(i) and (j), 9, and 303(r) of

[[Page 37215]]

the Communications Act of 1934, as amended.\57\
---------------------------------------------------------------------------

\57\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
---------------------------------------------------------------------------

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

4. 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.\58\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \59\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\60\ 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.\61\
---------------------------------------------------------------------------

\58\ 5 U.S.C. 603(b)(3).
\59\ 5 U.S.C. 601(6).
\60\ 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.''
\61\ 15 U.S.C. 632.
---------------------------------------------------------------------------

5. Small Entities. Our actions, over time, may affect small
entities that are not easily categorized at present. We therefore
describe here, at the outset, three comprehensive small entity size
standards that could be directly affected by the proposals under
consideration.\62\ As of 2009, small businesses represented 99.9
percent of the 27.5 million businesses in the United States, according
to the SBA.\63\ In addition, a ``small organization is generally any
not-for-profit enterprise which is independently owned and operated and
not dominant in its field.\64\ Nationwide, as of 2007, there were
approximately 1,621,215 small organizations.\65\ Finally the term
``small governmental jurisdiction'' is defined generally as
``governments of cities, towns, townships, villages, school districts,
or special districts, with a population of less than fifty
thousand.\66\ Census Bureau data for 2011 indicate that there were
90,056 local governmental jurisdictions in the United States.\67\ We
estimate that, of this total, as many as 89,327 entities may qualify as
``small governmental jurisdictions.'' \68\ Thus, we estimate that most
local government jurisdictions are small.
---------------------------------------------------------------------------

\62\ See 5 U.S.C. 601(3)-(6).
\63\ See SBA, Office of Advocacy, ``Frequently Asked
Questions'', available at https://www.sba.gov/faqs/faqindex.cfm?arealD=24.
\64\ 5 U.S.C. 601(4).
\65\ See Independent Sector, The New Nonprofit Almanac and Desk
Reference (2010).
\66\ 5 U.S.C. 601(5).
\67\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at http.www.sba.gov/sites/default/files.FAQ
March 201_Opdf.
\68\ The 2011 Census Data for small governmental organizations
are not presented based on the size of the population in each
organization. As stated above, there were 90,056 local governmental
organizations in 2011. As a basis for estimating how many of these
90,056 local organizations were small, we note that there were a
total of 729 cities and towns (incorporated places and civil
divisions) with populations over 50,000. See https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk. If we subtract the 729 cities and towns
that exceed the 50,000 population threshold, we conclude that
approximately 789, 237 are small.
---------------------------------------------------------------------------

6. Wired Telecommunications Carriers. The U.S. Census Bureau
defines this industry as ``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 communications
networks. Transmission facilities may be based on a single technology
or a combination of technologies. Establishments in this industry use
the wired telecommunications network facilities that they operate to
provide a variety of services, such as wired telephony services,
including VoIP services, wired (cable) audio and video programming
distribution, and wired broadband internet services. By exception,
establishments providing satellite television distribution services
using facilities and infrastructure that they operate are included in
this industry.'' \69\ 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.\70\ Census data for
2007 shows that there were 3,188 firms that operated that year. Of this
total, 3,144 operated with fewer than 1,000 employees.\71\ Thus, under
this size standard, the majority of firms in this industry can be
considered small.
---------------------------------------------------------------------------

\69\ See https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\70\ See 13 CFR 120.201, NAICS Code 517110.
\71\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

7. Local Exchange Carriers (LECs). Neither the Commission nor the
SBA has developed a size standard for small businesses specifically
applicable to local exchange services. The closest applicable NAICS
Code category is for Wired Telecommunications Carriers as defined in
paragraph 6 of this IRFA. Under that size standard, such a business is
small if it has 1,500 or fewer employees.\72\ According to Commission
data, census data for 2007 shows that there were 3,188 establishments
that operated that year. Of this total, 3,144 operated with fewer than
1,000 employees.\73\ 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 Notice of Proposed Rulemaking.
---------------------------------------------------------------------------

\72\ 13 CFR 121.201, NAICS code 517110.
\73\ See id.
---------------------------------------------------------------------------

8. Incumbent LECs. Neither the Commission nor the SBA has developed
a small business size standard specifically for incumbent local
exchange services. The closest applicable NAICS Code category is Wired
Telecommunications Carriers, as defined in paragraph 6 of this IRFA.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\74\ According to Commission data, 3,188 firms operated
in that year. 1,307 carriers reported that they were incumbent local
exchange service providers.\75\ Of this total, 3,144 operated with
fewer than 1,000 employees.\76\ 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 NPRM. Three hundred and seven (307) Incumbent Local Exchange
Carriers reported that they were incumbent local exchange service
providers.\77\ Of this total, an estimated 1,006 have 1,500 or fewer
employees.\78\
---------------------------------------------------------------------------

\74\ 13 CFR 121.201, NAICS code 517110.
\75\ 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).
\76\ See id.
\77\ See id.
\78\ Id.
---------------------------------------------------------------------------

9. 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 NAICS Code category is Wired
Telecommunications Carriers, as defined in paragraph 6 of this IRFA.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\79\ U.S. Census data for 2007 indicate that 3,188
firms

[[Page 37216]]

operated during that year. Of that number, 3,144 operated with fewer
than 1,000 employees.\80\ Based on this data, the Commission concludes
that the majority of Competitive LECs, CAPs, Shared-Tenant Service
Providers, and Other Local Service Providers are small entities.
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.\81\ Of these 1,442 carriers,
an estimated 1,256 have 1,500 or fewer employees. 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.\82\ In
addition, 72 carriers have reported that they are Other Local Service
Providers.\83\ Of this total, 70 have 1,500 or fewer employees.\84\
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 NPRM.
---------------------------------------------------------------------------

\79\ 13 CFR 121.201, NAICS code 517110.
\80\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=%20table.
\81\ See Trends in Telephone Service, at tbl. 5.3.
\82\ Id.
\83\ Id.
\84\ Id.
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10. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA has developed a definition for Interexchange Carriers. The closest
NAICS Code category is Wired Telecommunications Carriers as defined in
paragraph 6 of this IRFA. The applicable size standard under SBA rules
is that such a business is small if it has 1,500 or fewer
employees.\85\ According to Commission data, 359 companies reported
that their primary telecommunications service activity was the
provision of interexchange services.\86\ Of this total, an estimated
317 have 1,500 or fewer employees and 42 have more than 1,500
employees.\87\ Consequently, the Commission estimates that the majority
of interexchange service providers are small entities that may be
affected by rules adopted pursuant to the Notice of Proposed
Rulemaking.
---------------------------------------------------------------------------

\85\ 13 CFR 121.201, NAICS code 517110.
\86\ See Trends in Telephone Service, at tbl. 5.3.
\87\ Id.
---------------------------------------------------------------------------

11. 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 NAICS Code category for
prepaid calling card providers is Telecommunications Resellers. This
industry comprises establishments engaged in purchasing access and
network capacity from owners and operators of telecommunications
networks and reselling wired and wireless telecommunications services
(except satellite) to businesses and households. Mobile virtual
networks operators (MVNOs) are included in this industry.\88\ Under the
applicable SBA size standard, such a business is small if it has 1,500
or fewer employees.\89\ U.S. Census data for 2007 show that 1,523 firms
provided resale services during that year. Of that number, 1,522
operated with fewer than 1,000 employees.\90\ 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.\91\ All 193 carriers
have 1,500 or fewer employees.\92\ 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 NPRM.
---------------------------------------------------------------------------

\88\ https://www.census.gov/cgi-bin/ssd/naics/naicsrch.
\89\ 13 CFR 121.201, NAICS code 517911.
\90\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\91\ See Trends in Telephone Service, at tbl. 5.3.
\92\ Id.
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12. Local Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees.\93\ Census data for 2007 show that 1,523 firms provided
resale services during that year. Of that number, 1,522 operated with
fewer than 1,000 employees.\94\ 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.\95\ Of this total, an estimated 211 have 1,500 or
fewer employees.\96\ 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 NPRM.
---------------------------------------------------------------------------

\93\ 13 CFR 121.201, NAICS code 517911.
\94\ Id.
\95\ See Trends in Telephone Service, at tbl. 5.3.
\96\ Id.
---------------------------------------------------------------------------

13. Toll Resellers. The Commission has not developed a definition
for Toll Resellers. The closest NAICS Code Category is
Telecommunications Resellers, and 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.\97\ Census data for 2007 show that 1,523
firms provided resale services during that year. Of that number, 1,522
operated with fewer than 1,000 employees.\98\ 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.\99\ Of this total, an estimated 857 have 1,500
or fewer employees.\100\ Consequently, the Commission estimates that
the majority of toll resellers are small entities that may be affected
by our proposals in the NPRM.
---------------------------------------------------------------------------

\97\ 13 CFR 121.201, NAICS code 517911.
\98\ Id.
\99\ Trends in Telephone Service, at tbl. 5.3.
\100\ Id.
---------------------------------------------------------------------------

14. 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 NAICS Code category
is for Wired Telecommunications Carriers, as defined in paragraph 6 of
this IRFA. Under that size standard, such a business is small if it has
1,500 or fewer employees.\101\ Census data for 2007 shows that there
were 3,188 firms that operated that year. Of this total, 3,144 operated
with fewer than 1,000 employees.\102\ 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.\103\ Of these, an
estimated 279 have 1,500 or fewer employees.\104\ 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
NPRM.
---------------------------------------------------------------------------

\101\ 13 CFR 121.201, NAICS code 517110.
\102\ Id.
\103\ Trends in Telephone Service, at tbl. 5.3.
\104\ Id.

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[[Page 37217]]

15. Wireless Telecommunications Carriers (except Satellite). This
industry comprises establishments engaged in operating and maintaining
switching and transmission facilities to provide communications via the
airwaves, such as cellular services, paging services, wireless internet
access, and wireless video services.\105\ The appropriate size standard
under SBA rules is that such a business is small if it has 1,500 or
fewer employees. For this industry, Census Data for 2007 show that
there were 1,383 firms that operated for the entire year. Of this
total, 1,368 firms had fewer than 1,000 employees. Thus under this
category and the associated size standard, the Commission estimates
that the majority of wireless telecommunications carriers (except
satellite) are small entities. Similarly, according to internally
developed 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) services.\106\ Of this total, an estimated 261 have 1,500 or
fewer employees.\107\ Consequently, the Commission estimates that
approximately half of these firms can be considered small. Thus, using
available data, we estimate that the majority of wireless firms can be
considered small.
---------------------------------------------------------------------------

\105\ NAICS Code 517210. See https://www.census.gov/cgi-bin/ssd/naics/naiscsrch.
\106\ Trends in Telephone Service, at tbl. 5.3.
\107\ Id.
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16. Cable Television and other Subscription Programming.\108\ 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.'' \109\ The SBA has developed a small
business size standard for this category, which is: All such firms
having 1,500 or fewer employees.\110\ Census data for 2007 shows that
there were 3,188 firms that operated that year. Of this total, 3,144
had fewer than 1,000 employees.\111\ 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 NPRM.
---------------------------------------------------------------------------

\108\ In 2014, ``Cable and Other Subscription Programming,''
NAICS Code 515210, replaced a prior category, now obsolete, which
was called ``Cable and Other Program Distribution.'' Cable and Other
Program Distribution, prior to 2014, were placed under NAICS Code
517110, Wired Telecommunications Carriers. Wired Telecommunications
Carriers is still a current and valid NAICS Code Category. Because
of the similarity between ``Cable and Other Subscription
Programming'' and ``Cable and other Program Distribution,'' we will,
in this proceeding, continue to use Wired Telecommunications Carrier
data based on the U.S. Census. The alternative of using data
gathered under Cable and Other Subscription Programming (NAICS Code
515210) is unavailable to us for two reasons. First, the size
standard established by the SBA for Cable and Other Subscription
Programming is annual receipts of $38.5 million or less. Thus to use
the annual receipts size standard would require the Commission
either to switch from existing employee based size standard of 1,500
employees or less for Wired Telecommunications Carriers, or else
would require the use of two size standards. No official approval of
either option has been granted by the Commission as of the time of
the release of this Regulatory Fees NPRM and its associated Report
and Order and Order. Second, the data available under the size
standard of $38.5 million dollars or less is not applicable at this
time, because the only currently available U.S. Census data for
annual receipts of all businesses operating in the NAICS Code
category of 515210 (Cable and other Subscription Programming)
consists only of total receipts for all businesses operating in this
category in 2007 and of total annual receipts for all businesses
operating in this category in 2012. Hence the data do not provide
any basis for determining, for either year, how many businesses were
small because they had annual receipts of $38.5 million or less. See
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51I2&prodType=table.
\109\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition), (Full definition
stated in paragraph 6 of this IRFA) available at https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\110\ 13 CFR 121.201, NAICS code 517110.
\111\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US-51SSSZ5&prodType=Table.
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17. 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.\112\ Industry
data indicate that at the end of June 2012, of 1,141 cable companies
were in operation; of this total, all but ten cable operators are small
under this size standard.\113\ In addition, under the Commission's
rules, a ``small system'' is a cable system serving 15,000 or fewer
subscribers.\114\ Industry data indicate that of 4,945 systems
nationwide, 4,380 systems have fewer than 20,000 subscribers.\115\
Thus, under this second size standard, most cable systems are small and
may be affected by rules adopted pursuant to the NPRM.
---------------------------------------------------------------------------

\112\ 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).
\113\ 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.
\114\ See 47 CFR 76.901(c).
\115\ 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.
---------------------------------------------------------------------------

18. All Other Telecommunications. ``All Other Telecommunications''
is defined as follows: This U.S. industry is comprised of
establishments that are primarily engaged in providing specialized
telecommunications services, such as satellite tracking, communications
telemetry, and radar station operation. This industry also includes
establishments primarily engaged in providing satellite terminal
stations and associated facilities connected with one or more
terrestrial systems and capable of transmitting telecommunications to,
and receiving telecommunications from, satellite systems.
Establishments providing Internet services or voice over Internet
protocol (VoIP) services via client-supplied telecommunications
connections are also included in this industry.\116\ The SBA has
developed a small business size standard for ``All Other
Telecommunications,'' which consists of all such firms with gross
annual receipts of $32.5 million or less.\117\ For this category,
census data for 2007 show that there were 2,383 firms that operated for
the entire year. Of these firms, a total of 2,346 had gross annual
receipts of less than $25 million.\118\ Thus, a majority of ``All Other
Telecommunications'' firms potentially affected by the proposals in the
NPRM can be considered small.
---------------------------------------------------------------------------

\116\ https://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
\117\ 13 CFR 121.201; NAICs Code 517919.
\118\ https://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2007_US.51SSSZ4&prodType=table.
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D. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements

19. This NPRM does not propose any changes to the Commission's
current information collection, reporting, recordkeeping, or compliance
requirements.

[[Page 37218]]

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

20. 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.\119\
---------------------------------------------------------------------------

\119\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

21. This NPRM seeks comment on the Commission's regulatory fee
collection for Fiscal Year 2015. Our regulatory fee rules now have a
significantly higher de minimis threshold ($500) than in previous years
($10), which takes into account the differing needs of smaller
entities. With the increase in the de minimis threshold, entities that
have total annual fees below the threshold will not have to submit
payment, which reduces the administrative burden on small entities, as
well as on the Commission. The threshold was raised to $500 to reduce
the financial and administrative burden on small entities, as well as
the burden that the previous $10 threshold placed on the Commission to
process payments, and when applicable, to pursue non-payers whose total
regulatory fee obligation exceeded $10. In the future, the Commission
may increase the de minimis threshold to a higher level. In addition,
the Commission is also seeking comment on additional regulatory fee
relief for the radio stations in Puerto Rico.

F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules

22. None.

VII. Ordering Clauses

23. 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, Notice
of Proposed Rulemaking, and Order IS HEREBY ADOPTED.
24. IT IS FURTHER ORDERED that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, SHALL SEND a
copy of this Notice of Proposed Rulemaking, including the Initial
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of
the U.S. Small Business Administration.

Federal Communications Commission.
Gloria J. Miles,
Federal Register Liaison Officer.
[FR Doc. 2015-15971 Filed 6-29-15; 8:45 am]
BILLING CODE 6712-01-P

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