Assessment and Collection of Regulatory Fees for Fiscal Year 2015, 55775-55795 [2015-23312]
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Dated: August 31, 2015.
Roy E. Wright,
Deputy Associate Administrator, Federal
Insurance and Mitigation Administration,
Department of Homeland Security, Federal
Emergency Management Agency.
Act of 1934, as amended, provides for
the annual assessment and collection of
regulatory fees under sections 9(b)(2)
and 9(b)(3), respectively, for annual
‘‘Mandatory Adjustments’’ and
‘‘Permitted Amendments’’ to the
Schedule of Regulatory Fees.
DATES: Effective September 17, 2015. To
avoid penalties and interest, regulatory
fees should be paid by the due date of
September 24, 2015.
FOR FURTHER INFORMATION CONTACT:
Roland Helvajian, Office of Managing
Director at (202) 418–0444.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Report
and Order (R&O), FCC 15–108, MD
Docket No. 15–121, adopted on
September 1, 2015 and released on
September 2, 2015.
I. Administrative Matters
[FR Doc. 2015–23303 Filed 9–16–15; 8:45 am]
BILLING CODE 9110–12–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 1
[MD Docket No. 15–121; FCC 15–108]
Assessment and Collection of
Regulatory Fees for Fiscal Year 2015
Federal Communications
Commission.
ACTION: Final rule.
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AGENCY:
In this document the
Commission revises its Schedule of
Regulatory Fees to recover an amount of
$339,844,000 that Congress has required
the Commission to collect for fiscal year
2015. Section 9 of the Communications
SUMMARY:
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Commission has prepared a Final
Regulatory Flexibility Analysis (FRFA)
relating to this Report and Order. The
FRFA is contained towards the end of
this document.
C. Congressional Review Act
3. The Commission will send a copy
of this Report and Order to Congress
and the Government Accountability
A. Final Regulatory Flexibility Analysis
1. As required by the Regulatory
Flexibility Act of 1980 (RFA),1 the
1 See
5 U.S.C. 603. The RFA, see 5 U.S.C. 601–
612, has been amended by the Small Business
Regulatory Enforcement Fairness Act of 1996
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B. Final Paperwork Reduction Act of
1995 Analysis
2. This document does not contain
new or modified information collection
requirements subject to the Paperwork
Reduction Act of 1995 (PRA), Public
Law 104–13. In addition, therefore, it
does not contain any new or modified
information collection burden for small
business concerns with fewer than 25
employees, pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 44 U.S.C.
3506(c)(4).
(SBREFA), Public Law 104–121, Title II, 110 Stat.
847 (1996). The SBREFA was enacted as Title II of
the Contract with America Advancement Act of
1996 (CWAAA).
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Office pursuant to the Congressional
Review Act. 5 U.S.C. 801(a)(1)(A).
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II. Introduction and Executive
Summary
4. This Report and Order adopts a
schedule of regulatory fees to assess and
collect $339,844,000 in regulatory fees
for Fiscal Year (FY) 2015, pursuant to
Section 9 of the Communications Act of
1934, as amended (the Act or
Communications Act) and the
Commission’s FY 2015 Appropriation.2
The schedule of regulatory fees for FY
2015 adopted here is attached in Table
C. These regulatory fees are due in
September 2015.
5. The FY 2015 regulatory fees are
based on the proposals in the FY 2015
NPRM,3 considered in light of the
comments received and Commission
analysis. The FY 2015 regulatory fee
schedule includes the following
noteworthy changes from prior years: (1)
A reduction in regulatory fees for the
submarine cable/terrestrial and satellite
bearer circuit (IBC) category relative to
other fee categories in the International
Bureau; (2) the first fee rate for Direct
Broadcast Satellite (DBS) as a
subcategory of the cable television and
Internet Protocol Television (IPTV)
regulatory fee category; (3) the first fee
rate for toll free numbers; and (4) the
elimination of the regulatory fee
component of two fee categories:
amateur radio Vanity Call Signs and
General Mobile Radio Service (GMRS).4
In addition, for FY 2015, in calculating
the fee schedule, the Commission also
reallocated four International Bureau
full time employees (FTEs) 5 from direct
to indirect.
2 Section 9 regulatory fees are mandated by
Congress and collected to recover the regulatory
costs associated with the Commission’s
enforcement, policy and rulemaking, user
information, and international activities. 47 U.S.C.
159(a). Public Law 113–235, Consolidated and
Further Continuing Appropriation Act of 2015 (FY
2015 Appropriation) (‘‘Provided further, That
$339,844,000 of offsetting collections shall be
assessed and collected pursuant to section 9 of title
I of the Communications Act of 1934, shall be
retained and used for necessary expenses and shall
remain available until expended.’’).
3 Assessment and Collection of Regulatory Fees
for Fiscal Year 2015, Notice of Proposed
Rulemaking, Report and Order, and Order, 30 FCC
Rcd 5354 (2015) (FY 2015 NPRM, FY 2015 Fee
Reform Report and Order).
4 See FY 2015 Fee Reform Report and Order, 30
FCC Rcd at 5361–62, paras. 19–22. As required by
section 9(b)(4)(B) of the Act, ‘‘permitted
amendment’’ letters were mailed June 4, 2015 and
these amendments will take effect 90 days after
congressional notification, i.e., September 3, 2015.
5 One FTE, a ‘‘Full Time Equivalent’’ or ‘‘Full
Time Employee,’’ is a unit of measure equal to the
work performed annually by a full time person
(working a 40 hour workweek for a full year)
assigned to the particular job, and subject to agency
personnel staffing limitations established by the
U.S. Office of Management and Budget.
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III. Background
6. Congress adopted a regulatory fee
schedule in 1993 6 and authorized the
Commission to assess and collect
annual regulatory fees pursuant to the
schedule, as amended by the
Commission.7 As a result, the
Commission annually reviews the
regulatory fee schedule, proposes
changes to the schedule to reflect
changes in the amount of its
appropriation, and proposes increases
or decrease to the schedule of regulatory
fees.8 The Commission makes changes
to the regulatory fee schedule ‘‘if the
Commission determines that the
schedule requires amendment to
comply with the requirements’’ 9 of
section 9(b)(1)(A) of the Act.10 The
Commission may also 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.’’ Thus,
for each fiscal year, the proposed fee
schedule in the annual Notice of
Proposed Rulemaking (NPRM) will
reflect changes in the amount
appropriated for the performance of the
FCC’s regulatory activities, changes in
the industries represented by the
regulatory fee payers, changes in
Commission FTE levels, and any other
issues of relevance to the proposed fee
schedule.11 After receipt and review of
comments, the Commission issues a
Report and Order adopting the fee
schedule for the fiscal year and sets out
the procedures for payment of fees.
7. The Commission calculates the fees
by first determining the FTE number of
employees performing the regulatory
activities specified in section 9(a),
‘‘adjusted to take into account factors
that are reasonably related to the
benefits provided to the payor of the fee
by the Commission’s activities . . . .’’ 12
FTEs are categorized as ‘‘direct’’ if they
are performing regulatory activities in
one of the ‘‘core’’ bureaus, i.e., the
6 47 U.S.C. 159 (g) (showing original fee schedule
prior to Commission amendment).
7 47 U.S.C. 159.
8 47 U.S.C. 159(b)(1)(B).
9 47 U.S.C. 159(b)(2).
10 47 U.S.C. 159(b)(1)(A).
11 Section 9(b)(2) discusses mandatory
amendments to the fee schedule and Section 9(b)(3)
discusses permissive amendments to the fee
schedule. Both mandatory and permissive
amendments are not subject to judicial review. 47
U.S.C. 159(b)(2) and (3).
12 47 U.S.C. 159(b)(1)(A). When section 9 was
adopted, the total FTEs were to be calculated based
on the number of FTEs in the Private Radio Bureau,
Mass Media Bureau, and Common Carrier Bureau.
(The names of these bureaus were subsequently
changed.) Satellites and submarine cable were
regulated through the Common Carrier Bureau
before the International Bureau was created.
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Wireless Telecommunications Bureau,
Media Bureau, Wireline Competition
Bureau, and part of the International
Bureau. All other FTEs are considered
‘‘indirect.’’ 13 The total FTEs for each fee
category is calculated by counting the
number of direct FTEs in the core
bureau that regulates that category, plus
a proportional allocation of indirect
FTEs. Next, the Commission allocates
the total amount to be collected among
the various regulatory fee categories.
This allocation is based on the number
of FTEs assigned to work in each
regulatory fee category. Each regulatee
within a fee category pays its
proportionate share based on an
objective measure, e.g., revenues,
number of subscribers, or licenses.14
8. As part of its annual review, the
Commission regularly seeks to improve
its regulatory fee analysis.15 For
example, in the FY 2013 Report and
Order, the Commission adopted
updated FTE allocations to more
accurately reflect the number of FTEs
working on regulation and oversight of
the regulatees in the various fee
categories,16 combined the UHF and
VHF television stations into one
regulatory fee category,17 and created a
fee category to include IPTV.18
Subsequently, in the FY 2014 Report
and Order and FNPRM, the Commission
adopted a new fee category for toll free
numbers,19 increased the de minimis
threshold,20 and eliminated several
categories from the regulatory fee
13 The indirect FTEs are the employees from the
International Bureau (in part), Enforcement Bureau,
Consumer & Governmental Affairs Bureau, Public
Safety & 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 1,041
indirect FTEs.
14 See Assessment and Collection of Regulatory
Fees, Notice of Proposed Rulemaking, 27 FCC Rcd
8458, 8461–62, paras. 8–11 (2012) (FY 2012 NPRM).
15 See Assessment and Collection of Regulatory
Fees for Fiscal Year 2008, MD Docket No. 08–65,
Report and Order and Further Notice of Proposed
Rulemaking, 24 FCC Rcd 6388 (2008) (FY 2008
Further Notice).
16 Assessment and Collection of Regulatory Fees
for Fiscal Year 2013, MD Docket No. 08–65, Report
and Order, 28 FCC Rcd 12351, 12354–58, paras. 10–
20 (2013) (FY 2013 Report and Order).
17 FY 2013 Report and Order, 28 FCC Rcd at
12361–62, paras. 29–31.
18 Id., 28 FCC Rcd at 12362–63, paras. 32–33.
19 Assessment and Collection of Regulatory Fees
for Fiscal Year 2014, Report and Order and Further
Notice of Proposed Rulemaking, 29 FCC Rcd 10767,
10777–79, paras. 25–28 (2014) (FY 2014 Report and
Order and FNPRM).
20 FY 2014 Report and Order and FNPRM, 29 FCC
Rcd at 10774–76, paras. 18–21.
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schedule.21 Earlier this year, in our FY
2015 Fee Reform Report and Order, we
added a subcategory for DBS providers
in the cable television and IPTV
regulatory fee category.22
9. In our FY 2015 NPRM, we proposed
to collect $339,844,000 in regulatory
fees and included a detailed, proposed
fee schedule. We also sought comment
on (1) a proposal revising the
apportionment between the submarine
cable/terrestrial and satellite bearer
circuits fee category and the space
station/earth station fee category; (2)
revising an apportionment of regulatory
fees among broadcasters; (3) a request
for relief from regulatory fee
assessments for radio stations in Puerto
Rico filed by the Puerto Rico
Broadcasters Association (PRBA); 23 (4)
raising earth station regulatory fees
relative to space station fees; 24 (5) a new
regulatory fee for toll free numbers; (6)
a new regulatory fee for DBS (as a
subcategory in the cable television and
IPTV regulatory fee category); and (7)
whether certain FTEs should be
allocated as direct instead of indirect.25
We received 13 comments and eight
reply comments. The list of commenters
is attached in Table A.
IV. Report And Order
A. Discussion
1. FY 2015 Regulatory Fees
10. In this Report and Order, we adopt
a regulatory fee schedule for FY 2015,
pursuant to Section 9 of the
Communications Act and our FY 2015
appropriation statute in order to collect
$339,844,000 in regulatory fees.26 Of
this amount, we project approximately
$18.56 million (5.45 percent of the total
FTE allocation) in fees from the
International Bureau regulatees; 27
$69.07 million (20.28 percent of the
21 Id.,
29 FCC Rcd at 10776–77, paras. 22–24.
2015 Fee Reform Report and Order, 30 FCC
Rcd at 5364–5373, paras. 28–41. We also eliminated
two additional fee categories. See id., 30 FCC Rcd
at 5361–62, paras. 19–22.
23 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).
24 Earth station fees were previously increased by
7.5 percent. See FY 2014 Report and Order, 29 FCC
Rcd at 10772–73, para. 12.
25 This issue was raised previously. See, e.g., FY
2014 NPRM, 29 FCC Rcd at 6425–27, paras. 22–27.
26 Section 9 regulatory fees are mandated by
Congress and collected to recover the regulatory
costs associated with the Commission’s
enforcement, policy and rulemaking, user
information, and international activities. 47 U.S.C.
159(a).
27 Includes satellites, earth stations, and
international bearer circuits (submarine cable
systems and satellite and terrestrial bearer circuits).
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22 FY
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total FTE allocation) in fees from the
Wireless Telecommunications Bureau
regulatees; 28 $132.81 million (38.99
percent of the total FTE allocation) from
Wireline Competition Bureau
regulatees; 29 and $120.15 million (35.28
percent of the total FTE allocation) from
the Media Bureau regulatees.30 These
regulatory fees are due in September
2015. The schedule of regulatory fees for
FY 2015 adopted here is attached as
Table C.
2. Toll Free Numbers
11. In the FY 2014 Report and Order
and FNPRM,31 we adopted a regulatory
fee category for each toll free number
managed by a RespOrg.32 In the FY 2015
NPRM, we sought comment on a
regulatory fee of 12 cents per toll free
number.33 In this Report and Order, we
28 Includes Commercial Mobile Radio Service
(CMRS), CMRS messaging, Broadband Radio
Service/Local Multipoint Distribution Service (BRS/
LMDS), and multi-year wireless licensees.
29 Includes Interstate Telecommunications
Service Providers (ITSP) and toll free numbers.
30Includes AM radio, FM radio, television, low
power/FM, cable and IPTV, DBS, and Cable
Television Relay Service (CARS) licenses.
31 FY 2014 Report and Order and FNPRM, 29 FCC
Rcd at 10777–79, paras. 25–28. We adopted this
category for working, assigned, and reserved toll
free numbers and for toll free numbers that are in
the ‘‘transit’’ status, or any other status as defined
in section 52.103 of the Commission’s rules. The
regulatory fee, assessed on RespOrgs, for toll free
numbers is limited to toll free numbers that are
accessible within the United States.
32 A Responsible Organization or RespOrg is a
company that manages toll free telephone numbers
for subscribers. They use the SMS/800 data base to
verify the availability of specific numbers and to
reserve the numbers for subscribers. See 47 CFR
52.101(b). ITTA contends that ‘‘it makes no sense
to collect this fee from entities that already pay
regulatory fees as ITSPs.’’ ITTA Comments at 7–8.
In the FY 2014 Report and Order and FNPRM, 29
FCC Rcd 10767, 10777–79, paras. 25–28, we
explained the issue in some detail. In particular, we
noted that there may be many toll free numbers
controlled or managed by entities, Responsible
Organizations or RespOrgs, that in some cases are
not carriers. As a result, the Commission adopted
a regulatory fee on Resp Orgs, for each toll free
number, because there appears to be many toll free
numbers controlled or managed by Resp Orgs that
are not carriers, and therefore, have not been paying
regulatory fees. Commission FTEs in the Wireline
Competition Bureau and the Enforcement Bureau
work on toll free numbering issues and other
related activities. Because Commission FTEs work
on toll free number regulation, we adopted a
regulatory fee category for toll free numbers to
recover the associated costs. It is also important to
note that the amount assessed for toll free numbers
reduces the total regulatory fee assessment for
ITSPs. In the FY 2014 Report and Order and
FNPRM, we stated that: ‘‘Based on evaluation, the
FTEs involved in toll free issues are primarily from
the Wireline Competition Bureau. . . . Accordingly,
a regulatory fee assessed on toll free numbers
reduces the ITSP regulatory fee total.’’ FY 2014
Report and Order and FNPRM, 29 FCC Rcd at
10778, para. 27 (footnote omitted).
33 FY 2015 NPRM, 30 FCC Rcd at 5358, para. 10.
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55777
adopt the proposed fee of 12 cents per
toll free number.
3. Submarine Cable
12. In the FY 2014 Report and Order
and FNPRM, we concluded that the
regulatory fee assessment for the
submarine cable/terrestrial and satellite
bearer circuits fee category did not fairly
take into account the Commission’s
minimal oversight and regulation of the
international bearer circuit (IBC)
industry. Accordingly, we reduced the
total regulatory fee apportionment for
submarine cable/terrestrial and satellite
bearer circuits by five percent and stated
that we would revisit the issue to
determine if additional adjustment is
warranted.34 Subsequently, in the FY
2015 NPRM, we sought comment on
further reducing the regulatory fee
allocation for the submarine cable/
terrestrial and satellite bearer circuit fee
category.35 In particular, we observed
that after the initial licensing process,
the regulatory activity concerning
submarine cable/terrestrial and satellite
bearer circuit systems is primarily
limited to reviewing the Circuit
Capacity Reports 36 and quarterly
reports filed by licensees.37 Based on
our tentative conclusion that the fee
remained excessive relative to the
minimal Commission oversight and
regulation of this industry, we proposed
another five percent decrease in fees.38
13. NASCA, representing submarine
cable operators,39 argues that the
proposed fee remains excessive because
the industry would be responsible for
27.6 percent of all International Bureau
regulatory fees.40 Commenters also
contend that the apportionment of
regulatory fees for submarine cable
operators and terrestrial and satellite
bearer circuits remains too high due to
the small number of FTEs working on
34 See FY 2014 Report and Order and FNPRM, 29
FCC Rcd at 10772, para. 11.
35 See FY 2014 Report and Order and FNPRM, 29
FCC Rcd at 10772, para. 11.
36 See 47 CFR 43.62(a)(2); Reporting
Requirements for U.S. Providers of International
Telecommunications Services; Amendment of Part
43 of the Commission’s Rules, IB Docket No. 04–
112, Second Report and Order, 28 FCC Rcd 575,
601–08, paras. 89–108 (2013) (Second Report and
Order); id. at 604, para. 98 (noting that submarine
cable capacity holders will report circuit capacity,
rather than circuit status, going forward), recon.
dismissed, Order, DA 15–711 (Int’l Bur. rel. June 17,
2015).
37 See 47 CFR 1.767(l).
38 FY 2015 NPRM, 30 FCC Rcd at 5358–59, para.
12.
39 NASCA Comments at 2–3. (NASCA represents
operators with 30 of the 42 active systems landing
in the United States.)
40 NASCA Comments at 9.
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those services.41 Some commenters
observe as well that the high regulatory
fees imposed on the submarine cable
operators can place the United States at
a competitive disadvantage because
Canada and Mexico have much lower
fees and the submarine cable industry
may choose to land new cables in those
countries instead.42 Commenters
suggest that this could pose national
security issues if the submarine cable
operators choose to build out in Canada
and Mexico, because those facilities
would not be subject to the
Communications Assistance for Law
Enforcement Act, commonly known as
CALEA.43 EchoStar contends that we
have not supported our proposal to
reduce the IBC fees with sufficient
facts.44
14. In 2009, the Commission adopted
a new regulatory fee methodology for
submarine cable based on a proposal by
a large group of submarine cable
operators.45 Under this methodology,
after we apportion the IBC revenue
requirement between the terrestrial and
satellite facilities and submarine cable,
we assess the submarine cable systems
on a per cable landing license basis,
with higher fees for larger systems and
lower fees for smaller systems (the
regulatory fees for terrestrial and
satellite facilities are still assessed on a
per bearer circuit basis).46 The
regulatory fees that are now paid by the
submarine cable operators cover the
services provided to common carriers
using the submarine cable circuits in
addition to the services that the
International Bureau provides to
submarine cable operators. The
International Bureau’s regulatory
activity concerning submarine cable
includes licensing,47 reviewing the
Circuit Capacity Reports 48 and filed
quarterly reports.49 In addition, all
41 NASCA Comments at 11–13; Coalition
Comments at 4–7 & Reply Comments at 3. (The
Coalition consists of Cedar Cable Ltd., Columbus
Networks USA, Inc., GlobeNet Cabos Submarinos
America, Inc., and GU Holdings Inc.).
42 Coalition Comments at 8.
43 Coalition Comments at 8.
44 EchoStar Comments at 5.
45 Assessment and Collection of Regulatory Fees
for Fiscal Year 2008, Second Report and Order, 24
FCC Rcd 4208 (2009) (Submarine Cable Order).
46 Submarine Cable Order, 24 FCC Rcd at 4214–
17, paras. 13–22.
47 The International Bureau reviews, processes,
analyzes, and grants applications for submarine
cable landing license applications, transfers,
assignments, and modifications. The bureau also
coordinates processing of submarine cable landing
license applications with the relevant Executive
Branch agencies.
48 See Second Report and Order, 28 FCC Rcd at
601–08, paras. 89–108.
49 See 47 CFR 1.767(l). The International Bureau
reviews Part 43 submarine cable circuit capacity
and traffic and revenue filings, and compiles and
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International Bureau services provided
to common carriers using the submarine
cable circuits, such as benchmarks
enforcement,50 protection from
anticompetitive actions by foreign
carriers, foreign ownership rulings
(Petitions for Declaratory Rulings, or
PDRs), section 214 authorizations, and
bilateral and multilateral negotiations
and representation of U.S. interests at
international organizations, are all
provided by the International Bureau on
behalf of the common carriers using
submarine cable circuits. Upon this
further analysis, we conclude that our
previous estimate of two FTEs working
on IBC issues discussed in FY 2014
Report and Order, did not take these
issues into account.51 Nevertheless, as
we have discussed previously in the FY
2013 NPRM, FY 2014 NPRM, and the FY
2015 NPRM,52 the oversight and
regulation of the IBC industry may
warrant additional adjustment to the fee
allocation. For the reasons discussed
above, we reduce the regulatory fee
apportionment for submarine cable/
terrestrial and satellite bearer circuits by
7.5 percent to more accurately reflect
the regulation and oversight for the
industry.53 This analysis reflects both
the direct work on submarine cable/
terrestrial and satellite bearer circuit
issues and other common carrier issues
by International Bureau FTEs and the
indirect FTEs that devote their time to
International Bureau regulatees as a
whole. We find that this decrease in the
regulatory fees paid by IBCs more
accurately reflects the level of regulation
and oversight for this industry. Also, we
reject the speculation that failure to
reduce regulatory fees as much as the
submarine cable operators might prefer
could lead to a change in the cable
landing locations. We also reject
EchoStar’s statement that our proposal
lacked factual support. As noted above,
the regulatory oversight of this fee
category has been explained in detail in
publishes annual industry analysis reports based on
that data.
50 See, e.g., International Settlement Rates, IB
Docket No. 96–261, Report and Order, FCC 97–280,
12 FCC Rcd 19806 (1997) (Benchmarks Order);
Report and Order on Reconsideration and Order
Lifting Stay, 14 FCC Rcd 9256 (1999) (Benchmarks
Reconsideration Order); aff’d sub nom. Cable &
Wireless, 166 F.3d 1224.
51 FY 2014 Report and Order, 29 FCC Rcd at
10772, para. 11.
52 FY 2013 NPRM, 28 FCC Rcd at 7800–7803,
paras. 24–29; FY 2014 NPRM, 29 FCC Rcd at 6427–
28, para. 28; FY 2015 NPRM, 30 FCC Rcd at 5358–
59, para. 12.
53 The actual decrease is higher than 7.5 percent
due to the reallocation of four direct FTEs,
discussed in paragraph 25, because the submarine
cable percentage of International Bureau regulatory
fees was 31.36 percent in FY 2014 and will be 24.85
percent in 2015, a reduction of more than 20
percent.
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this, and prior proceedings,54 and has
been the subject of comments by
submarine cable operators for a number
of years.
4. Earth Stations
15. In the FY 2014 NPRM, the
Commission recognized that the
International Bureau’s oversight and
regulation of the satellite industry
involves FTEs working on legal,
technical, and policy issues pertaining
to both space station and earth station
operations and is therefore
interdependent to some degree.55 For
that reason, we sought comment on
whether we should increase the earth
station regulatory fee allocation in order
to reflect more appropriately the
number of FTEs devoted to the
regulation and oversight of the earth
station portion of the satellite
industry.56 In the FY 2014 regulatory fee
proceeding, we increased the regulatory
fees paid by earth station licensees by
approximately 7.5 percent based on our
analysis and review of the record.57
16. In the FY 2015 NPRM, we sought
comment on whether to raise the earth
station regulatory fees again.58 We find,
however, that this issue requires further
analysis. In particular, due to comments
suggesting that we adopt different
regulatory fees for different types of
earth stations and an ongoing
proceeding concerning Part 25 (Satellite
Communications) of the Commission’s
rules which may affect the distribution
of FTE work, we plan to further examine
and consider this issue for FY 2016.59 In
doing so, we intend to seek comment on
EchoStar’s proposal to assess different
levels of regulatory fees on different
types of earth station licenses.60
5. FTE Reallocations
17. As explained above in paragraph
five, we calculate regulatory fees by
classifying FTEs either as direct or
indirect. FTEs classified as direct are
further associated with one of the core
bureaus. The Commission now updates
FTE allocations on an annual basis to
more accurately reflect the number of
FTEs working on regulation and
oversight of the regulatees in the various
fee categories.61 The Commission has
54 See FY 2013 NPRM, 28 FCC Rcd at 7800–7803,
paras. 24–29; FY 2014 NPRM, 29 FCC Rcd at 6427–
28, para. 28; FY 2015 NPRM, 30 FCC Rcd at 5358–
59, para. 12.
55 FY 2014 NPRM, 29 FCC Rcd at 6428, para. 29.
56 Id., 29 FCC Rcd at 6428, para. 29.
57 See FY 2014 Report and Order, 29 FCC Rcd at
10772–73, para. 12.
58 FY 2015 NPRM, 30 FCC Rcd at 5360, para. 14.
59 See EchoStar July 20, 2015 ex parte.
60 See EchoStar July 20, 2015 ex parte.
61 FY 2013 Report and Order, 28 FCC Rcd at
12355–56, para. 14.
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also previously determined that some of
the International Bureau FTEs should be
considered indirect instead of direct.62
We find that apart from the unique
nature of the International Bureau FTEs,
the work of all the FTEs in a core bureau
contributes to the cost of regulating and
overseeing the licensees of that bureau.
Therefore, we may reasonably expect
that the work of the FTEs in the core
bureaus would remain focused on the
industry segment regulated by each of
those bureaus. The work of the FTEs in
the remaining (i.e., indirect) bureaus
and offices benefits the Commission and
the telecommunications industry and is
not specifically focused on the licensees
of a particular core bureau. Given the
significant implications of reassignment
of FTEs in our fee calculation, we make
changes to FTE classifications only after
performing considerable analysis and
finding the clearest case for
reassignment.63
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a. Request To Characterize Indirect FTEs
as Direct FTEs
18. SIA and EchoStar propose that we
consider FTEs working in certain
divisions of the Enforcement Bureau
and the Consumer & Governmental
Affairs Bureau and the Office of
Engineering & Technology (i.e., indirect
FTEs) as direct FTEs, associated with a
core bureau for purposes of regulatory
fee calculation.64 SIA contends that the
work in the Market Disputes Resolution
Division ‘‘is limited to complaints
against common carriers and pole
attachment disputes’’ 65 and the
‘‘Telecommunications Consumers
Division focuses on protecting
consumers from fraudulent, misleading,
and other harmful practices involving
telecommunications, such as
slamming.’’ 66 SIA’s description of these
two Enforcement Bureau divisions
underestimates the range of issues that
they investigate.67 EchoStar argues that
the Office of Engineering &
62 FY 2013 Report and Order, 28 FCC Rcd at
12356, para. 14.
63 FY 2013 Report and Order, 28 FCC Rcd at
12357, para. 19. The Commission observed that the
International Bureau was a ‘‘singular case’’ because
the work of those FTEs ‘‘primarily benefits
licensees regulated by other bureaus.’’ Id., 28 FCC
Rcd at 12355, para. 14.
64 SIA Comments at 8–11; EchoStar Comments at
3–4. CTIA observes that excluding one type of
licensee, such as satellite providers, from
contributing to indirect costs would threaten the
administrability of the regulatory fee program. CTIA
Reply Comments at 5. We interpret this proposal as
asking us to determine how many indirect FTEs
work on issues pertaining to all core bureau
licensees.
65 SIA Comments at 8.
66 SIA Comments at 8.
67 For a brief description of the Enforcement
Bureau divisions, see https://www.fcc.gov/
encyclopedia/enforcement-bureau-organization.
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Technology’s regulatory work suggests
that ‘‘no more than 7 percent of the
applicable FTEs for the OET should be
allocated to space-related IB
licensees.’’ 68 This proposal raised by
SIA and EchoStar involves more than an
analysis of two divisions and one office
but rather would require an assessment
of how all work done by FTEs in a
bureau or office not classified as a core
bureau could be associated with the
work of a core bureau, such that
additional FTEs could be allocated to
the core bureau. However, FTEs are
assigned as indirect in our regulatory fee
calculation where the FTEs work on a
variety of issues that cannot be
attributed to one particular type of
industry or regulatee at this time.
19. The Enforcement Bureau and
Consumer & Governmental Affairs FTEs
and other indirect FTEs, such as those
in the Office of Engineering &
Technology, work on a wide range of
matters, not all directly assignable to a
particular core bureau. We recognize
that before the Enforcement Bureau was
created, the core bureaus each had an
enforcement division and those FTEs
would have been assigned to those core
bureaus. Currently, however, most
enforcement activity is consolidated
into the Enforcement Bureau, therefore
the FTEs may work on a range of issues
and many of their investigations cannot
be assigned to a specific core bureau,
e.g., investigations that involve more
than one service. While SIA suggests
that we might track informal complaints
filed in the Consumer & Governmental
Affairs Bureau and associate them with
a core licensing bureau based on the
number of informal complaints in each
category over a certain time period,69 we
find that this would not be feasible at
this time because the types of informal
complaints can vary considerably and
often cover areas that are not
specifically correlated with one core
bureau, e.g., billing issues for bundled
services. For these reasons, we conclude
that reallocating indirect FTEs as direct
as suggested by EchoStar and SIA is not
feasible at this time. However, we will
continue to analyze this issue in future
regulatory fee proceedings.
b. Request To Associate Direct FTEs
With a Different Core Bureau
20. NAB notes that the FTEs in the
Media Bureau who work on issues
pertaining to the upcoming spectrum
68 EchoStar Comments at 4. We note that
currently International Bureau licensees are 5.43%
of the direct FTEs and therefore 5.43% of the
indirect FTEs are assigned to the International
Bureau licensees, which is lower than the 7%
EchoStar is proposing.
69 SIA Comments at 10.
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incentive auction to repurpose
broadcast television spectrum to
wireless use should be reallocated to the
Wireless Telecommunications Bureau
for regulatory fee purposes.70 SIA asks
us to ‘‘re-evaluate whether it is
appropriate to exclude auction FTEs in
assessing direct costs.’’ 71 FTE time
devoted to developing and
implementing the upcoming spectrum
incentive auction–direct and indirect
costs–is not included in the calculation
of fees and is not offset by the collection
of regulatory fees. Instead, time devoted
to developing and implementing the
incentive auction is tracked separately
from other work performed by Media
Bureau and other FTEs and is offset by
the auction proceeds that the
Commission is permitted to retain
pursuant to section 309(j)(8) of the
Communications Act and the
Commission’s annual appropriation
statute.72 Thus, the Commission is
unable, as a legal matter, to implement
these proposals.
6. DBS Rate Issues
21. In the FY 2015 NPRM, we sought
comment on setting the initial rate for
DBS regulatory fees, as a subset of the
cable television and IPTV category, at 12
cents per year, or one cent per month.73
Several commenters contend that we
should require DBS operators to pay the
same rate as cable television and
IPTV.74 DBS commenters contend that
paying the same rate as cable television/
IPTV would cause ‘‘rate shock’’ and if
we adopt a fee it should be 12 cents as
proposed.75
22. When adopting the new regulatory
fee subcategory for DBS within the cable
and IPTV category, we determined a
variety of regulatory developments have
increased the amount of regulatory
activity by the Media Bureau FTEs
involving regulation and oversight of
MVPDs, including DBS providers.76 For
example, DBS providers (and cable
television operators) are permitted to
file program access complaints77 and
complaints seeking relief under the
retransmission consent good faith
71 SIA
Comments at 12.
e.g. the FCC’s FY 2015 appropriation
statute, the Consolidated and Further Continuing
Appropriations Act, 2015, Public Law 113–235, 128
Stat. 2130 (2014).
73 FY 2015 NPRM, 30 FCC Rcd at 5358, para. 9.
74 NCTA & ACA Comments at 2–6 & Reply
Comments at 4–6; ITTA Comments at 5–7.
75 DIRECTV Comments at 3–5 & Reply Comments
at 3–4 (arguing that if we adopt a fee it should be
the 12 cents proposed); DISH Reply Comments at
4–5.
76 See FY 2015 Fee Reform Report and Order, 30
FCC Rcd at 5367–68, para. 31.
77 47 U.S.C. 548; 47 CFR 76.1000–1004.
72 See,
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rules.78 In addition, DBS providers are
subject to MVPD requirements such as
those pertaining to program carriage 79
and the requirement to negotiate
retransmission consent in good faith.80
More recently, the Commission adopted
a host of requirements that apply to all
MVPDs and thus equally apply to DBS
providers as part of its implementation
of the Commercial Advertisement
Loudness Mitigation Act (CALM Act),81
the Twenty-First Century
Communications and Video
Accessibility Act of 2010 (CVAA),82 as
well as the Satellite Television
Extension and Localism Act (STELA)
Reauthorization Act of 2014
(STELAR).83 Moreover, we recognize
that FY 2015 would be the first time the
Commission would be applying this
regulatory fee subcategory for DBS.
Thus, for the above reasons, we find that
for FY 2015 the proposed rate of 12
cents per subscriber per year is a
sensible fee supported by data and
analysis.84 In the FY 2016 regulatory fee
proceeding, we will update this rate for
future years, based on relevant
information, as necessary for ensuring
an appropriate level of regulatory parity
and considering the resources dedicated
to this new regulatory fee subcategory.85
7. Other Rate Issues
23. Aviation Ground Licenses. In the
FY 2015 NPRM, we proposed an
increase in regulatory fees for aviation
ground licenses. Commenters contend
that we have proposed an unjustified
and disproportionate fee increase for
78 47
U.S.C. 325(b)(1), (3)(C)(ii); 47 CFR 76.65(b).
U.S.C. 536; 47 CFR 76.1300–1302.
80 47 U.S.C. 325(b)(3)(C)(iii); 47 CFR 76.65(a)–(b).
81 See Implementation of the Commercial
Advertisement, Loudness Mitigation (CALM) Act,
Report and Order, 26 FCC Rcd 17222 (2011) (CALM
Act Report and Order).
82 Public Law 111–260, 124 Stat. 2751 (2010). See
also Amendment of Twenty-First Century
Communications and Video Accessibility Act of
2010, Public Law 111–265, 124 Stat. 2795 (2010)
(making corrections to the CVAA); 47 CFR part 79.
83 The STELA Reauthorization Act of 2014
(STELAR), 102, Public Law 113–200, 128 Stat.
2059, 2060–62 (2014) (codified at 47 U.S.C. 338(1)).
The STELAR was enacted on Dec. 4, 2014 (H.R.
5728, 113th Cong.). Implementation of Section 102
of the STELA Reauthorization Act of 2014, Notice
of Proposed Rulemaking, MB Docket No. 15–71,
FCC 15–34 (released Mar. 26, 2015) proposes
satellite television ‘‘market modification’’ rules to
implement section 102 of STELAR.
84 See FY 2015 Fee Reform Report and Order, 30
FCC Rcd at 5367–5373, paras. 31 to 41. The agency
is not required to calculate its costs with ‘‘scientific
precision.’’ Central & Southern Motor Freight Tariff
Ass’n v. United States, 777 F.2d 722, 736 (D.C. Cir.
1985). Reasonable approximations will suffice. Id.;
Mississippi Power & Light, 601 F.2d at 232; National
Cable Television Ass’n v. FCC, 554 F.2d 1094, 1105
(D.C. Cir. 1976); 36 Comp. Gen. 75 (1956).
85 See FY 2015 Fee Reform Report and Order, 30
FCC Rcd at 5371–72, para. 38
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79 47
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aviation ground licensees.86 The
Aviation Joint Commenters disagree
with our contention that the payment
units should be adjusted and they
observe that we failed to explain why
the revenue requirement was
increased.87 These commenters observe
that despite no increase in regulation of
this industry, the Commission has
significantly increased the regulatory
fees in FY 2014 and FY 2015.88 We
agree with the Aviation Joint
Commenters and, after reviewing
additional information, have adjusted
the payment units and rate accordingly
based on current fiscal year renewals.
24. Satellite. Several commenters
have raised issues pertaining to the
proposed space station fees. SIA and
EchoStar object to the proposed increase
in fees, contending that we should cap
any increases at 7.5 percent.89 These
commenters argue that we should adopt
the same cap we adopted for FY 2013.
In FY 2013, the 7.5% cap was instituted
to address the initial changes in the FTE
allocations (not fee rate changes
resulting from changes in the unit
counts) as a result of GAO
recommendations.90 Such FTE
allocation changes could have caused
some regulatory fee rates to increase
dramatically. To address this issue, the
Commission capped the fee rate
increase to 7.5% from the prior year. In
the current proceeding, some satellite
commenters requested that the
Commission adopt a 7.5% cap on FY
2015 regulatory fee increases as the
Commission did in FY 2013 with
respect to the Non-Geostationary Space
Station fee category. Although the
circumstances in which we instituted
the cap in FY 2013 are different than
now, any discussion of imposing a cap
at this time is not necessary because the
satellite fee rate in the FY 2015 Report
and Order is nearly the same or slightly
lower than in FY 2014. We therefore
decline to adopt a cap in this instance.
25. Intelsat asks that we take satellite
application fees 91 into consideration in
calculating our regulatory fees.92 We are
86 Aviation
Joint Comments at 4–12.
Joint Comments at 5–6.
88 Aviation Joint Comments at 6–9.
89 SIA Comments at 6–7; EchoStar Comments at
6–8.
90 General Accountability Office, ‘‘Federal
Communications Commission, Regulatory Fee
Process Needs to be Updated’’, GAO 12–686,
August 2012, p. 1, 8–11.
91 Application fees are assessed under Section 8
of the Communications Act. 47 U.S.C. 158 and are
paid directly into the general fund of the U.S.
Treasury. 47 U.S.C. 158(e). The Commission is not
authorized to retain receipts from application fees
for its own use or to use application fees to offset
its appropriation.
92 Intelsat Comments at 1–2.
87 Aviation
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required to assess and collect
$339,844,000 in regulatory fees for FY
2015, pursuant to Section 9 of the
Communications Act and the
Commission’s FY 2015 Appropriation.93
Thus, we are not able to collect less than
mandated by Congress in order to take
into account section 8 application fees,
as Intelsat requests.
26. In addition, Intelsat argues that
U.S.-licensed satellite operators should
not have to subsidize the non-U.S.licensed satellite operators’ ability to
serve the U.S. market.94 We have sought
comment previously on this issue
because the number of International
Bureau FTEs working on non-U.S.licensed space stations increases the
regulatory fees for the International
Bureau regulatees.95 We also note that
non-U.S.-licensed space stations that
have been granted access to the U.S.
market will eventually communicate
with earth stations in the United States,
and therefore aspects of the interrelated
communications system are apportioned
to earth station licensees when
accounting for FTE time spent
processing requests to access the nonU.S. licensed space station. We
conclude that due to: (i) The time spent
by International Bureau FTEs in
working on these issues; and (ii) the
significant number of requests to access
the U.S. market by non-U.S.-licensed
space stations, the FTEs working on
petitions or other matters involving nonU.S.-licensed space stations should be
removed from the regulatory fee
assessments for U.S.-licensed space
stations and considered indirect for
regulatory fee purposes. Non-U.S.licensed space stations granted access to
the market in the United States provide
a variety of services. Attributing such
FTE work as indirect appropriately
attributes the regulatory fee burden to
the wider telecommunications industry
that benefits from such grants of market
access. We have reviewed the number of
FTEs working on the non-U.S.-licensed
space stations and have determined that
approximately four FTEs are devoted to
this work at this time, therefore, we are
reallocating four International Bureau
FTEs as indirect FTEs for regulatory fee
purposes.96
93 Section 9 regulatory fees are mandated by
Congress and collected to recover the regulatory
costs associated with the Commission’s
enforcement, policy and rulemaking, user
information, and international activities. 47 U.S.C.
159(a).
94 Intelsat Comments at 3–4.
95 See FY 2014 NPRM, 29 FCC Rcd at 6434, para.
50.
96 The number of market access requests can vary;
however, four FTEs is appropriate at this point.
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8. Puerto Rico Broadcasters Association
Petition
27. In the FY 2015 NPRM, we sought
comment on the petition filed by the
Puerto Rico Broadcaster’s Association
(PRBA) seeking regulatory fee relief.97
We recognize the challenging
circumstances described in the PRBA
petition. Due to the complexities of this
proposal and time constraints imposed
by the annual regulatory fee process,
additional time is needed to further
consider this petition. We intend to
address the PRBA petition in a separate
proceeding outside of the regulatory fee
rulemaking process. We understand that
PRBA is contending that the costs
associated with preparing and filing a
waiver request would be overly
burdensome.98 We do not agree that
PRBA’s assertion, that requesting a
waiver is a burden, eliminates that
option. Our waiver process,99 is
available to PRBA members and any
aggrieved party seeking a waiver of our
rules.100
9. Effective Date of Elimination of the
Vanity Call Sign and General Mobile
Radio Service Regulatory Fee
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28. In the Commission’s FY 2015 Fee
Reform Report and Order,101 the
Commission eliminated the regulatory
fee component of two fee categories:
amateur radio Vanity Call Signs 102 and
General Mobile Radio Service
(GMRS).103 The elimination of
regulatory fee categories constitutes a
‘‘permitted amendment’’ as defined in
section 9(b)(3) of the Act. As required by
section 9(b)(4)(B) of the Act, ‘‘permitted
amendment’’ letters dated June 4, 2015
were mailed to congressional officials
informing them of the elimination of
these two fee categories and adoption of
the new DBS fee category. Consistent
with section 9(b)(4)(B) of the Act, these
97 FY 2015 NPRM, 30 FCC Rcd at 5360–61, paras.
15–18. One commenter addressed the issues in the
PRBA petition and suggests that we adopt our
second proposal and create a separate fee category
for Puerto Rico at a lower rate. ARSO Comments at
6–8.
98 PRBA Comments at 2.
99 47 U.S.C. 159(d); 47 CFR 1.1166.
100 See the Commission’s regulatory fee waiver
fact sheet, available at https://www.fcc.gov/
document/fy-2014-regulatory-fees-waiver-fact-sheet.
101 FY 2015 Fee Reform Report and Order, 30 FCC
Rcd at 5361–62, paras. 19–22.
102 Call signs assigned to newly licensed stations,
i.e., a sequential call sign, are assigned based on the
licensee’s mailing address and class of operator
license. 47 CFR 97.17(d). The licensee can request
a specific unassigned but assignable call sign,
known as a vanity call sign. 47 CFR 97.19. There
is no fee for the sequential call sign.
103 GMRS (formerly Class A of the Citizens Radio
Service) is a personal radio service available for the
conduct of an individual’s personal and family
communications. See 47 CFR 95.1.
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amendments will take effect 90 days
after congressional notification of the
permitted amendment letter, dated June
4, 2015. Thus, effective September 3,
2015, the Vanity Call Sign and GMRS
regulatory fee categories will be
eliminated and licensees will not be
required to pay additional regulatory
fees for these licenses.104 Regulatees are
still responsible for the payment of all
application fees associated with these
licenses.
V. Procedural Matters
A. Payment of Regulatory Fees
1. Payments by Check Will Not Be
Accepted for Payment of Annual
Regulatory Fees
29. Pursuant to an Office of
Management and Budget (OMB)
directive,105 the Commission is moving
towards a paperless environment,
extending to disbursement and
collection of select federal government
payments and receipts.106 The initiative
to reduce paper and curtail check
payments for regulatory fees is expected
to produce cost savings, reduce errors,
and improve efficiencies across
government. Accordingly, the
Commission will no longer accept
checks (including cashier’s checks and
money orders) and the accompanying
hardcopy forms (e.g., Forms 159, 159–B,
159–E, 159–W) for the payment of
regulatory fees. This new paperless
procedure will require that all payments
be made by online ACH payment,
online credit card, or wire transfer. Any
other form of payment (e.g., checks,
cashier’s checks, or money orders) will
be rejected. For payments by wire, a
Form 159–E should still be transmitted
via fax so that the Commission can
associate the wire payment with the
correct regulatory fee information. This
change will affect all payments of
regulatory fees.107
2. Revised Credit Card Transaction
Levels
30. In accordance with U.S. Treasury
Announcement No. A–2014–04 (July
104 The letter dated June 4, 2015 also includes the
establishment of a DBS regulatory fee which will
also be effective September 3, 2015.
105 Office of Management and Budget (OMB)
Memorandum M–10–06, Open Government
Directive, Dec. 8, 2009; see also https://
www.whitehouse.gov/the-press-office/2011/06/13/
executive-order-13576-delivering-efficient-effectiveand-accountable-gov.
106 See U.S. Department of the Treasury, Open
Government Plan 2.1, Sept. 2012.
107 Payors should note that this change will mean
that to the extent certain entities have to date paid
both regulatory fees and application fees at the
same time via paper check, they will no longer be
able to do so as the regulatory fees payment via
paper check will no longer be accepted.
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2014), the amount that can be charged
on a credit card for transactions with
federal agencies has been reduced to
$24,999.99.108 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 in Fact Sheets,
available at https://www.fcc.gov/regfees.
3. Lock Box Bank
31. During the fee season for
collecting FY 2015 regulatory fees,
regulatees can pay their fees by credit
card through Pay.gov,109 ACH, debit
card,110 or by wire transfer. Additional
payment instructions are posted at
https://transition.fcc.gov/fees/
regfees.html.
4. Receiving Bank for Wire Payments
32. The receiving bank for all wire
payments is the Federal Reserve Bank,
New York, New York (TREAS NYC).
When making a wire transfer, regulatees
must fax a copy of their Fee Filer
generated Form 159–E to the Federal
Communications Commission at (202)
418–2843 at least one hour before
initiating the wire transfer (but on the
108 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.
109 In accordance with U.S. Treasury Financial
Manual Announcement No. A–2014–04 (July 2014),
the amount that may be charged on a credit card
for transactions with federal agencies has been
reduced to $24,999.99.
110 In accordance with U.S. Treasury Financial
Manual Announcement No. A–2012–02, the
maximum dollar-value limit for debit card
transactions is eliminated. It should also be noted
that only Visa and MasterCard branded debit cards
are accepted by Pay.gov.
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same business day) so as not to delay
crediting their account. Regulatees
should discuss arrangements (including
bank closing schedules) with their
bankers several days before they plan to
make the wire transfer to allow
sufficient time for the transfer to be
initiated and completed before the
deadline. Complete instructions for
making wire payments are posted at
https://transition.fcc.gov/fees/
wiretran.html.
tkelley on DSK3SPTVN1PROD with RULES
5. De Minimis Regulatory Fees
33. Regulatees whose total FY 2015
annual regulatory fee liability, including
all categories of fees for which payment
is due, is $500 or less are exempt from
payment of FY 2015 regulatory fees. The
de minimis threshold applies only to
filers of annual regulatory fees (not
regulatory fees paid through multi-year
filings), and it is not a permanent
exemption. Rather, each regulate will
need to reevaluate their total fee liability
each fiscal year to determine whether
they meet the de minimis exemption.
6. Standard Fee Calculations and
Payment Dates
34. 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.
For providers of Direct Broadcast
Service (DBS) service, regulatory fees
should be paid based on a subscriber
count on or about December 31, 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.111 For Responsible
Organizations (RespOrgs) that manage
Toll Free Numbers (TFN), regulatory
111 Audio bridging services are toll
teleconferencing services.
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fees should be paid on all working,
assigned, and reserved toll free
numbers, including those toll free
numbers that are in transit status, or any
other status as defined in section 52.103
of the Commission’s rules. The unit
count should be based on toll free
numbers managed by RespOrgs on or
about December 31, 2014.
• 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.
• Wireless Services, Multi-year fees:
The first eight regulatory fee categories
in our Schedule of Regulatory Fees 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
B) 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 and CARS licensees):
Regulatory fees must be paid for the
number of basic cable television
subscribers as of December 31, 2014.112
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
112 Cable television system operators should
compute their number of basic subscribers as
follows: Number of single family dwellings +
number of individual households in multiple
dwelling unit (apartments, condominiums, mobile
home parks, etc.) paying at the basic subscriber rate
+ bulk rate customers + courtesy and free service.
Note: Bulk-Rate Customers = Total annual bulk-rate
charge divided by basic annual subscription rate for
individual households. Operators may base their
count on ‘‘a typical day in the last full week’’ of
December 2014, rather than on a count as of
December 31, 2014.
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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
remain at 87.6 percent for submarine
cable and 12.4 percent for satellite/
terrestrial facilities.
• International Services: (Terrestrial
and Satellite Services): Regulatory fees
for Terrestrial and Satellite 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 used 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. For these purposes,
‘‘active circuits’’ 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.113 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.114
113 We encourage terrestrial and satellite service
providers to seek guidance from the International
Bureau’s Policy Division to verify their IBC
reporting processes to ensure that their calculation
methods comply with our rules.
114 We remind facilities-based common carriers to
review their reporting processes to ensure that they
accurately calculate and report IBCs. As we recently
have done with submarine cable capacity holders,
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Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Rules and Regulations
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B. Commercial Mobile Radio Service
(CMRS) Cellular and Mobile Services
Assessments
35. The Commission will compile
data from the Numbering Resource
Utilization Forecast (NRUF) report that
is based on ‘‘assigned’’ telephone
number (subscriber) counts that have
been adjusted for porting to net Type 0
ports (‘‘in’’ and ‘‘out’’).115 This
information of telephone numbers
(subscriber count) will be posted on the
Commission’s electronic filing and
payment system (Fee Filer) along with
the carrier’s Operating Company
Numbers (OCNs).
36. A carrier wishing to revise its
telephone number (subscriber) count
can do so by accessing Fee Filer and
follow the prompts to revise their
telephone number counts. Any revisions
to the telephone number counts should
be accompanied by an explanation or
supporting documentation.116 The
Commission will then review the
revised count and supporting
documentation and either approve or
disapprove the submission in Fee Filer.
If the submission is disapproved, the
Commission will contact the provider to
afford the provider an opportunity to
discuss its revised subscriber count and/
or provide additional supporting
documentation. If we receive no
response from the provider, or we do
not reverse our initial disapproval of the
provider’s revised count submission, the
fee payment must be based on the
number of subscribers listed initially in
Fee Filer. Once the timeframe for
revision has passed, the telephone
number counts are final and are the
basis upon which CMRS regulatory fees
are to be paid. Providers can view their
final telephone counts online in Fee
Filer. A final CMRS assessment letter
will not be mailed out.
37. Because some carriers do not file
the NRUF report, they may not see their
telephone number counts in Fee Filer.
In these instances, the carriers should
compute their fee payment using the
standard methodology that is currently
in place for CMRS Wireless services
(i.e., compute their telephone number
counts as of December 31, 2014), and
submit their fee payment accordingly.
Whether a carrier reviews its telephone
we will review the processes for reporting IBCs in
the near future to ensure that all carriers are
reporting IBCs in the same manner, consistent with
our rules.
115 See FY 2005 Report and Order, 20 FCC Rcd
at 12264, paras. 38–44.
116 In the supporting documentation, the provider
will need to state a reason for the change, such as
a purchase or sale of a subsidiary, the date of the
transaction, and any other pertinent information
that will help to justify a reason for the change.
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number counts in Fee Filer or not, the
Commission reserves the right to audit
the number of telephone numbers for
which regulatory fees are paid. In the
event that the Commission determines
that the number of telephone numbers
that are paid is inaccurate, the
Commission will bill the carrier for the
difference between what was paid and
what should have been paid.
C. Enforcement
38. To be considered timely,
regulatory fee payments must be made
electronically by the payment due date
for regulatory fees. Section 9(c) of the
Act requires us to impose a late
payment penalty of 25 percent of the
unpaid amount to be assessed on the
first day following the deadline for
filing these fees.117 Failure to pay
regulatory fees and/or any late penalty
will subject regulatees to sanctions,
including those set forth in section
1.1910 of the Commission’s rules,118
which generally requires the
Commission to withhold action on
‘‘applications, including on a petition
for reconsideration or any application
for review of a fee determination, or
requests for authorization by any entity
found to be delinquent in its debt to the
Commission’’ and in the DCIA.119 We
also assess administrative processing
charges on delinquent debts to recover
additional costs incurred in processing
and handling the debt pursuant to the
DCIA and section 1.1940(d) of the
Commission’s rules.120 These
administrative processing charges will
be assessed on any delinquent
regulatory fee, in addition to the 25
percent late charge penalty. In the case
of partial payments (underpayments) of
regulatory fees, the payor will be given
credit for the amount paid, but if it is
later determined that the fee paid is
incorrect or not timely paid, then the 25
percent late charge penalty (and other
charges and/or sanctions, as
appropriate) will be assessed on the
portion that is not paid in a timely
manner.
39. Pursuant to the ‘‘red light rule,’’
we will withhold action on any
applications or other requests for
117 47
U.S.C. 159(c).
47 CFR 1.1910.
119 Delinquent debt owed to the Commission
triggers the ‘‘red light rule,’’ which places a hold on
the processing of pending applications, fee offsets,
and pending disbursement payments. 47 CFR
1.1910, 1.1911, 1.1912. In 2004, the Commission
adopted rules implementing the requirements of the
DCIA. See Amendment of Parts 0 and 1 of the
Commission’s Rules, MD Docket No. 02–339, Report
and Order, 19 FCC Rcd 6540 (2004); 47 CFR part
1, subpart O, Collection of Claims Owed the United
States.
120 47 CFR 1.1940(d).
118 See
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Fmt 4700
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55783
benefits filed by anyone who is
delinquent in any non-tax debts owed to
the Commission (including regulatory
fees) and will ultimately dismiss those
applications or other requests if
payment of the delinquent debt or other
satisfactory arrangement for payment is
not made.121 Failure to pay regulatory
fees can also result in the initiation of
a proceeding to revoke any and all
authorizations held by the entity
responsible for paying the delinquent
fee(s).122 Pursuant to a pilot program,
we have initiated procedures to transfer
debt to the Centralized Receivables
Service at the U.S. Treasury, as
described below.
D. Transfers of Unpaid Debt to
Centralized Receivables Service, U.S.
Treasury
40. Under section 9 of the Act,
Commission’s rules, and federal debt
collection laws, a licensee’s regulatory
fee is due on the first day of the fiscal
year and payable at a date established in
the Commission’s annual regulatory fee
Report and Order. Beginning on or after
October 1, 2015, under revised
procedures, the Commission will begin
transferring unpaid regulatory fee
receivables directly to the CRS at the
U.S. Treasury instead of working to
collect the debt and then transferring
the remaining unpaid debts to Treasury.
The Commission can transfer
delinquent debt to Treasury for further
collection action within 120 days after
the date of delinquency.123 We
anticipate that the transfer of FY 2015
debts to Treasury will occur much
sooner than our current process.
Regulatees, however, will not likely see
any substantial change in the current
procedures of how past due debts are to
be paid, except that the debts will be
handled by CRS (U.S. Treasury) rather
than by the Commission.
E. Effective Date
41. Providing a 30 day period after
Federal Register publication before this
Report and Order becomes effective as
required by 5 U.S.C. 553(d) will not
allow sufficient time for the
Commission to collect the FY 2015 fees
before FY 2015 ends on September 30,
2015. For this reason, pursuant to 5
U.S.C. 553(d)(3), the Commission finds
there is good cause to waive the
requirements of section 553(d), and this
Report and Order and Further Notice of
Proposed Rulemaking will become
effective upon publication in the
121 See
47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
U.S.C. 159.
123 See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR
1.1917.
122 47
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Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Rules and Regulations
Federal Register. Because payments of
the regulatory fees will not actually be
due until the middle of September,
persons affected by this Report and
Order will still have a reasonable period
in which to make their payments and
thereby comply with the rules
established herein.
VI. Additional Tables
TABLE A
Commenter
Abbreviation
List of Commenters—Initial Comments
ARSO Radio Corporation ........................................................................................................................................
Aviation Spectrum Resources, Inc., Airlines for America, Aircraft Owners and Pilots Association, Delta Airlines,
Harris Corporation, Rockwell-Collins Information Management Services, Southwest Airlines Co., The Boeing
Company, and SITA OnAir.
DIRECTV, LLC .........................................................................................................................................................
DISH Network, L.L.C. ..............................................................................................................................................
EchoStar Satellite Operating Corporation and Hughes Network Systems, LLC ....................................................
Intelsat Licensee, LLC .............................................................................................................................................
ITTA—The Voice of Mid-Size Communications Companies ...................................................................................
National Association of Broadcasters ......................................................................................................................
National Cable & Telecommunications Association and the American Cable Association ....................................
North American Submarine Cable Association .......................................................................................................
Puerto Rico Broadcasters Association, International Broadcasting Corporation, Eastern Television Corporation,
America-CV Stations Group, Inc., R & F Broadcasting, Inc..
Satellite Industry Association ...................................................................................................................................
Submarine Cable Coalition ......................................................................................................................................
ARSO.
Aviation Joint Commenters.
DIRECTV.
DISH.
EchoStar.
Intelsat.
ITTA.
NAB.
NCTA & ACA.
NASCA.
PRBA.
SIA.
Coalition.
List of Commenters—Reply Comments
CTIA—The Wireless Association® ..........................................................................................................................
DIRECTV, LLC .........................................................................................................................................................
DISH Network, L.L.C ...............................................................................................................................................
EchoStar Satellite Operating Corporation and Hughes Network Systems, LLC ....................................................
National Cable & Telecommunications Association and the American Cable Association ....................................
North American Submarine Cable Association .......................................................................................................
SES Americom, Inc., Inmarsat, Inc., Telesat Canada .............................................................................................
Submarine Cable Coalition ......................................................................................................................................
CTIA.
DIRECTV.
DISH.
EchoStar.
NCTA & ACA.
NASCA.
Satellite Parties.
Coalition.
TABLE B—CALCULATION OF FY 2015 REVENUE REQUIREMENTS AND PRO-RATA FEES
[The first seven regulatory fees listed 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.]
tkelley on DSK3SPTVN1PROD with RULES
Fee category
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 ..................
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16:04 Sep 16, 2015
FY 2015 payment units
Years
FY 2014
revenue
estimate
Pro-rated FY
2015 revenue
requirement
Computed FY 2015
regulatory fee
1,820
31,000
12,600
6,300
4,200
490
900
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
589,899
2,822,788
2,780,552
927,085
420,954
168,241
168,241
280,935
3,483,012
1,245,750
4,120,475
8,641,905
10,595,484
17,110
136,500
199,675
6,274,824
5,918,646
5,001,220
4,608,775
1,834,853
9,700
32
9
22
15
10
34
19
4,322
2,314
1,401
2,762
2,759
3,371
590
750
1,572
46,827
43,202
27,631
16,285
4,841
4,850
3,640
300
64,500,000
34,000,000
1
1
1
1
1,570,300
196,625
64,746,000
........................
1,592,900
197,876
61,618,439
4,115,811
438
660
$38,800,000,000
36,500,000
1
1
131,369,000
........................
128,607,682
4,419,018
354,000,000
2,600,000
1
1
60,300,000
232,000
60,506,881
208,000
Jkt 235001
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Rounded
FY 2015
regulatory fee
30
10
20
15
10
35
20
4,325
2,325
1,400
2,750
2,700
3,375
590
750
1,575
46,825
43,200
27,625
16,275
4,850
4,850
.955532
.1211
440
660
.96
.12
0.0033146
0.12069
0.00331
0.12
0.1737
0.0800
0.17
0.080
E:\FR\FM\17SER1.SGM
17SER1
Expected
FY 2015
revenue
546,000
3,100,000
2,520,000
945,000
420,000
171,500
180,000
281,125
3,499,125
1,244,600
4,103,000
8,613,000
10,607,625
17,110
136,500
200,025
6,274,550
5,918,400
5,00,125
4,605,825
1,838,150
9,700
1,601,600
198,000
61,920,000
4,080,000
128,428,000
4,380,000
60,180,000
208,000
Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Rules and Regulations
55785
TABLE B—CALCULATION OF FY 2015 REVENUE REQUIREMENTS AND PRO-RATA FEES—Continued
[The first seven regulatory fees listed below are collected by the Commission in advance to cover the term of the license and are submitted at
the time the application is filed.]
Fee category
BRS 2 .................................................
LMDS ................................................
Per 64 kbps Int’l Bearer Circuits .......
Terrestrial (Common) & Satellite
(Common & Non-Common) 5
Submarine Cable Providers (see
chart in Appendix C) 3 5 ..................
Earth Stations 5 .................................
Space Stations (Geostationary) 5 ......
Space
Stations
(Non-Geostationary) 5 ....................................
FY 2015 payment units
890
375
21,900,000
Years
FY 2014
revenue
estimate
Pro-rated FY
2015 revenue
requirement
Computed FY 2015
regulatory fee
634
634
Rounded
FY 2015
regulatory fee
Expected
FY 2015
revenue
1
1
1
643,500
135,850
941,640
564,064
237,667
658,593
635
635
......................................
..........
........................
........................
40.563
3,300
96
1
1
1
6,586,731
1,003,000
11,505,600
4,652,639
1,022,890
11,437,435
114,702
310
119,140
114,700
310
119,150
4,652,576
1,023,000
11,438,400
6
1
797,100
792,693
132,116
132,125
792,750
.0301
................................
565,150
238,125
657,000
.03
............................
........................
****** Total Estimated Revenue
to be Collected .......................
****** Total Revenue Requirement ........................................
......................................
..........
339,847,246
341,879,214
................................
............................
340,593,961
......................................
..........
339,844,000
339,844,000
................................
............................
339,844,000
Difference ............................
......................................
..........
3,246
2,035,214
................................
............................
749,961
Notes on Table B
1 The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set the regulatory fee to
an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction Permit revenues were also 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 FY 2008 Further Notice, 24 FCC Rcd 6388 and the Submarine Cable Order, 24 FCC Rcd 4208.
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 7.5 per cent proportionally between the submarine cable and
bearer circuit fee categories. This allocation reduction of 7.5 per cent resulted in an increase in the allocation for the satellite and earth station fee categories. In addition, four (4) International Bureau FTEs were changed from ‘‘direct’’ to ‘‘indirect’’, thereby reducing the International Bureau’s overall FTE allocation percentage.
TABLE C—FY 2015 SCHEDULE OF REGULATORY FEES
[The first eight regulatory fees listed below are collected by the Commission in advance to cover the term of the license and are submitted at the
time the application is filed.]
Annual
regulatory fee
(U.S. $’s)
tkelley on DSK3SPTVN1PROD with RULES
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 C.F.R. 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) .........................................................................................................................................................
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20
15
35
10
10
10
20
.17
.08
635
635
590
750
46,825
43,200
27,625
16,275
4,850
4,850
1,575
440
660
.96
.12
.00331
.12
310
119,150
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Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Rules and Regulations
TABLE C—FY 2015 SCHEDULE OF REGULATORY FEES—Continued
[The first eight regulatory fees listed below are collected by the Commission in advance to cover the term of the license and are submitted at the
time the application is filed.]
Fee category
Annual
regulatory fee
(U.S. $’s)
Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) ...............................................................
International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) .........................................................................................
Submarine Cable Landing Licenses Fee (per cable system) .......................................................................................................
132,125
.03
See Table Below
FY 2015 SCHEDULE OF REGULATORY FEES:
[Continued]
FY 2015 RADIO STATION REGULATORY FEES
Population served
AM Class A
<=25,000 ..................................................
25,001–75,000 .........................................
75,001–150,000 .......................................
150,001–500,000 .....................................
500,001–1,200,000 ..................................
1,200,001–3,000,00 .................................
>3,000,000 ...............................................
AM Class B
$775
1,550
2,325
3,475
5,025
7,750
9,300
AM Class C
$645
1,300
1,625
2,750
4,225
6,500
7,800
AM Class D
$590
900
1,200
1,800
3,000
4,500
5,700
FM Classes
A, B1 & C3
$670
1,000
1,675
2,025
3,375
5,400
6,750
$750
1,500
2,050
3,175
5,050
8,250
10,500
FM Classes
B, C, C0, C1
& C2
$925
1,625
3,000
3,925
5,775
9,250
12,025
FY 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 ..............................................................................................................................................................................
Table D—Sources of Payment Unit
Estimates for FY 2015
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 report.
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
$7,175
14,350
28,675
57,350
114,700
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.
tkelley on DSK3SPTVN1PROD with RULES
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.
CMRS Cellular/Mobile Services .........................................
CMRS Messaging Services ...............................................
AM/FM Radio Stations .......................................................
Digital TV Stations (Combined VHF/UHF units) ................
AM/FM/TV Construction Permits .......................................
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55787
Fee category
Sources of payment unit estimates
LPTV, Translators and Boosters, Class A Television .......
BRS (formerly MDS/MMDS) ..............................................
LMDS .................................................................................
Cable Television Relay Service (‘‘CARS’’) Stations ..........
Based on CDBS data, adjusted for exemptions, and actual FY 2014 payment units.
Based on WTB reports and actual FY 2014 payment units.
Based on WTB reports and actual FY 2014 payment units.
Based on data from Media Bureau’s COALS database and actual FY 2013 payment
units.
Based on publicly available data sources for estimated subscriber counts and actual
FY 2014 payment units.
Based on FCC Form 499–Q data for the four quarters of calendar year 2014, the
Wireline Competition Bureau projected the amount of calendar year 2014 revenue
that will be reported on 2015 FCC Form 499–A worksheets in April, 2015.
Based on International Bureau (‘‘IB’’) licensing data and actual FY 2014 payment
units.
Based on IB data reports and actual FY 2014 payment units.
Based on IB reports and submissions by licensees, adjusted as necessary.
Based on IB license information.
Cable Television System Subscribers, Including IPTV
Subscribers.
Interstate Telecommunication Service Providers ..............
Earth Stations .....................................................................
Space Stations (GSOs & NGSOs) ....................................
International Bearer Circuits ..............................................
Submarine Cable Licenses ................................................
Table E—Factors, Measurements, and
Calculations That Determines Station
Signal Contours and Associated
Population Coverages
AM Stations
For stations with nondirectional
daytime antennas, the theoretical
radiation was used at all azimuths. For
stations with directional daytime
antennas, specific information on each
day tower, including field ratio, phase,
spacing, and orientation was retrieved,
as well as the theoretical pattern rootmean-square of the radiation in all
directions in the horizontal plane (RMS)
figure (milliVolt per meter (mVm) @1
km) for the antenna system. The
standard, or augmented standard if
pertinent, horizontal plane radiation
pattern was calculated using techniques
and methods specified in sections
73.150 and 73.152 of the Commission’s
rules. Radiation values were calculated
for each of 360 radials around the
transmitter site. Next, estimated soil
conductivity data was retrieved from a
database representing the information in
FCC Figure R3. Using the calculated
horizontal radiation values, and the
retrieved soil conductivity data, the
distance to the principal community (5
mVm) contour was predicted for each of
the 360 radials. The resulting distance
to principal community contours were
used to form a geographical polygon.
Population counting was accomplished
by determining which 2010 block
centroids were contained in the
polygon. (A block centroid is the center
point of a small area containing
population as computed by the U.S.
Census Bureau.) The sum of the
population figures for all enclosed
blocks represents the total population
for the predicted principal community
coverage area.
FM Stations
The greater of the horizontal or
vertical effective radiated power (ERP)
(kW) and respective height above
average terrain (HAAT) (m) combination
was used. Where the antenna height
above mean sea level (HAMSL) was
available, it was used in lieu of the
average HAAT figure to calculate
specific HAAT figures for each of 360
radials under study. Any available
directional pattern information was
applied as well, to produce a radialspecific ERP figure. The HAAT and ERP
figures were used in conjunction with
the Field Strength (50–50) propagation
curves specified in 47 CFR 73.313 of the
Commission’s rules to predict the
distance to the principal community (70
dBu (decibel above 1 microVolt per
meter) or 3.17 mVm) contour for each of
the 360 radials. The resulting distance
to principal community contours were
used to form a geographical polygon.
Population counting was accomplished
by determining which 2010 block
centroids were contained in the
polygon. The sum of the population
figures for all enclosed blocks represents
the total population for the predicted
principal community coverage area.
TABLE F—FY 2014 SCHEDULE OF REGULATORY FEES
[The first eleven regulatory fees listed below are collected by the Commission in advance to cover the term of the license and are submitted at
the time the application is filed]
Annual
regulatory fee
(U.S. $’s)
tkelley on DSK3SPTVN1PROD with RULES
Fee category
PLMRS (per license) (Exclusive Use) (47 CFR part 90) ..............................................................................................................
Microwave (per license) (47 CFR part 101) ..................................................................................................................................
218–219 MHz (Formerly Interactive Video Data Service) (per license) (47 CFR part 95) ..........................................................
Marine (Ship) (per station) (47 CFR part 80) ................................................................................................................................
Marine (Coast) (per license) (47 CFR part 80) .............................................................................................................................
General Mobile Radio Service (per license) (47 CFR part 95) .....................................................................................................
Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) .....................................................................
PLMRS (Shared Use) (per license) (47 CFR part 90) ..................................................................................................................
Aviation (Aircraft) (per station) (47 CFR part 87) ..........................................................................................................................
Aviation (Ground) (per license) (47 CFR part 87) .........................................................................................................................
Amateur Vanity Call Signs (per call sign) (47 CFR part 97) .........................................................................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) .................................................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) ....................................................................................
Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27) ......................................................................
Local Multipoint Distribution Service (per call sign) (47 CFR, part 101) ......................................................................................
AM Radio Construction Permits ....................................................................................................................................................
FM Radio Construction Permits ....................................................................................................................................................
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15
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Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Rules and Regulations
TABLE F—FY 2014 SCHEDULE OF REGULATORY FEES—Continued
[The first eleven regulatory fees listed below are collected by the Commission in advance to cover the term of the license and are submitted at
the time the application is filed]
Annual
regulatory fee
(U.S. $’s)
Fee category
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) .....................................................................................................................................
Construction Permits—Satellite Television Stations .....................................................................................................................
Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74) ...........................................................................
Broadcast Auxiliaries (47 CFR part 74) ........................................................................................................................................
CARS (47 CFR part 78) ................................................................................................................................................................
Cable Television Systems (per subscriber) (47 CFR part 76), Including IPTV ............................................................................
Interstate Telecommunication Service Providers (per revenue dollar) .........................................................................................
Earth Stations (47 CFR part 25) ...................................................................................................................................................
Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational
station) (47 CFR part 100) .........................................................................................................................................................
Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) ...............................................................
International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) .........................................................................................
International Bearer Circuits—Submarine Cable ..........................................................................................................................
44,650
42,100
26,975
15,600
4,750
4,750
1,550
1,300
410
10
605
.99
.00343
295
122,400
132,850
.21
See Table Below
FY 2014 SCHEDULE OF REGULATORY FEES: MAINTAIN ALLOCATION
FY 2014 Radio Station Regulatory Fees
Population served
AM Class A
<=25,000 ..................................................
25,001–75,000 .........................................
75,001–150,000 .......................................
150,001–500,000 .....................................
500,001–1,200,000 ..................................
1,200,001–3,000,000 ...............................
>3,000,000 ...............................................
AM Class B
$775
1,550
2,325
3,475
5,025
7,750
9,300
AM Class C
$645
1,300
1,625
2,750
4,225
6,500
7,800
AM Class D
$590
900
1,200
1,800
3,000
4,500
5,700
FM Classes
A, B1 & C3
$670
1,000
1,675
2,025
3,375
5,400
6,750
FM Classes
B, C, C0,
C1 & C2
$750
1,500
2,050
3,175
5,050
8,250
10,500
$925
1,625
3,000
3,925
5,775
9,250
12,025
FY 2014 SCHEDULE OF REGULATORY FEES
[International Bearer Circuits—Submarine Cable]
Submarine cable systems
(capacity as of December 31, 2013)
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 ..............................................................................................................................................................................
tkelley on DSK3SPTVN1PROD with RULES
VII. Regulatory Flexibility Analysis
1. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA),124 an Initial Regulatory
Flexibility Analysis (IRFA) was
included in the Notice of Proposed
Rulemaking.125 The Commission sought
124 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has
been amended by the Small Business Regulatory
Enforcement Fairness Act of 1996 (SBREFA), Public
Law 104–121, Title II, 110 Stat. 847 (1996).
125 Assessment and Collection of Regulatory Fees
for Fiscal Year 2015, Notice of Proposed
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written public comment on these
proposals including comment on the
IRFA. This Final Regulatory Flexibility
Analysis (FRFA) conforms to the
IRFA.126
Rulemaking, Report and Order, and Order, MD
Docket No. 15–121, 30 FCC Rcd 5354 (2015) (FY
2015 NPRM).
126 5 U.S.C. 604.
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$10,250
20,500
40,975
81,950
163,900
A. Need for, and Objectives of, the
Report and Order
2. In this Report and Order, we
conclude the Assessment and Collection
of Regulatory Fees for Fiscal Year (FY)
2015 proceeding to collect $339,844,000
in regulatory fees for FY 2015, pursuant
to section 9 of the Communications Act
of 1934, as amended.127 These
regulatory fees will be due in September
2015. Under section 9 of the
127 47
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Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Rules and Regulations
Communications Act, regulatory fees are
mandated by Congress and collected to
recover the regulatory costs associated
with the Commission’s enforcement,
policy and rulemaking, user
information, and international activities
in an amount that can be reasonably
expected to equal the amount of the
Commission’s annual appropriation.128
3. This FY 2015 Report and Order
adopts a regulatory fee schedule that
includes the following noteworthy
changes from prior years: (1) A
reduction in regulatory fees for the
submarine cable/terrestrial and satellite
bearer circuit category relative to other
fee categories in the International
Bureau; (2) the first fee rate for Direct
Broadcast Satellite (DBS) as a
subcategory of the cable television and
Internet Protocol Television (IPTV)
regulatory fee category; (3) the first fee
rate for toll free numbers; and (4) the
elimination of the regulatory fee
component of two fee categories:
Amateur Radio Vanity Call Signs and
General Mobile Radio Service (GMRS).
In addition, in calculating the FY 2015
fee schedule, the Commission also
reallocated four International Bureau
full time employees (FTEs) as indirect.
4. With respect to the submarine
cable/terrestrial and satellite bearer
circuit fee category, after additional
review, the Commission concluded that
the fee assessed on the submarine cable/
terrestrial and satellite bearer circuit fee
category was excessive relative to the
Commission’s oversight and regulation
of this industry. As a result, the
Commission reduced the percentage of
total fees paid by this fee category by 7.5
percent. With respect to the DBS fee
category, the Commission instituted the
DBS fee after realizing that Media
Bureau resources were being used to
address DBS and MVPD issues, but
these costs were not being recovered
from DBS providers. Therefore, the DBS
fee is instituted to recover the cost of
Media Bureau resources that is spent on
MVPD and DBS issues. Similarly, a toll
free number regulatory fee is instituted
to recover the cost of resources
expended by the Wireline Bureau on
issues relating to toll free numbers. With
respect to Amateur Radio Vanity Call
Signs and General Mobile Radio Service
(GMRS), the Commission concluded
that the administrative costs of
processing, reviewing, and enforcing the
thousands of Vanity Call Sign and
GMRS licenses far exceeds the $21.40
and $25 per license regulatory fee rate
that is collected, respectively. Many of
the Amateur Vanity Call Signs and
GMRS licensees are small businesses
128 47
U.S.C. 159(a).
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and/or individuals. Finally, in
calculating the FY 2015 fee schedule,
the Commission reallocated four
International Bureau full time
employees (FTEs) as indirect to reflect
work performed by International Bureau
staff on non-U.S.-licensed space
stations, who are not required to pay
regulatory fees.
B. Summary of the Significant Issues
Raised by the Public Comments in
Response to the IRFA
5. None.
C. Description and Estimate of the
Number of Small Entities to Which the
Rules Will Apply
6. The RFA directs agencies to
provide a description of, and where
feasible, an estimate of the number of
small entities that may be affected by
the proposed rules and policies, if
adopted.129 The RFA generally defines
the term ‘‘small entity’’ as having the
same meaning as the terms ‘‘small
business,’’ ‘‘small organization,’’ and
‘‘small governmental jurisdiction.’’ 130
In addition, the term ‘‘small business’’
has the same meaning as the term
‘‘small business concern’’ under the
Small Business Act.131 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.132 Nationwide,
there are a total of approximately 27.9
million small businesses, according to
the SBA.133
1. 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
129 5
U.S.C. 603(b)(3).
U.S.C. 601(6).
131 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.’’
132 15 U.S.C. 632.
133 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ https://www.sba.gov/sites/
default/files/FAQ_Sept_2012.pdf.
130 5
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55789
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.’’ 134 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.135 Census
data for 2007 shows that there were
3,188 firms that operated that year. Of
this total, 3,144 operated with less than
1,000 employees.136 Thus, under this
size standard, the majority of firms in
this industry can be considered small.
2. 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
Wired Telecommunications Carriers as
defined in paragraph 6 of this FRFA.
Under the applicable SBA size standard,
such a business is small if it has 1,500
or fewer employees.137 According to
Commission data, 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.138 The Commission
therefore estimates that most providers
of local exchange carrier service are
small entities that may be affected by
the rules adopted.
3. 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 FRFA.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.139 According to
Commission data, 3,188 firms operated
in that year. Of this total, 3,144 operated
134 https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
135 See 13 CFR 120.201, NAICS Code 517110.
136 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ5&prodType=table.
137 13 CFR 121.201, NAICS code 517110.
138 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ5&prodType=table.
139 13 CFR 121.201, NAICS code 517110.
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tkelley on DSK3SPTVN1PROD with RULES
with fewer than 1,000 employees.140
Consequently, the Commission
estimates that most providers of
incumbent local exchange service are
small businesses that may be affected by
the rules and policies adopted. Three
hundred and seven (307) Incumbent
Local Exchange Carriers reported that
they were incumbent local exchange
service providers.141 Of this total, an
estimated 1,006 have 1,500 or fewer
employees.142
4. 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 FRFA. Under that size standard,
such a business is small if it has 1,500
or fewer employees.143 U.S. Census data
for 2007 indicate that 3,188 firms
operated during that year. Of that
number, 3,144 operated with fewer than
1,000 employees.144 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.145
Of these 1,442 carriers, an estimated
1,256 have 1,500 or fewer employees.146
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.147 Also,
72 carriers have reported that they are
Other Local Service Providers.148 Of this
total, 70 have 1,500 or fewer
employees.149 Consequently, based on
internally researched FCC data, the
Commission estimates that most
140 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ5&prodType=table.
141 See Trends in Telephone Service, Federal
Communications Commission, Wireline
Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (Sept. 2010)
(Trends in Telephone Service).
142 Id.
143 13 CFR 121.201, NAICS code 517110.
144 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ5&prodType=table.
145 See Trends in Telephone Service, at Table 5.3.
146 Id.
147 Id.
148 Id.
149 Id.
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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 the rules
adopted.
5. 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 FRFA. The
applicable size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.150 U.S.
Census data for 2007 indicates that
3,188 firms operated during that year.
Of that number, 3,144 operated with
fewer than 1,000 employees.151
According to internally developed
Commission data, 359 companies
reported that their primary
telecommunications service activity was
the provision of interexchange
services.152 Of this total, an estimated
317 have 1,500 or fewer employees.153
Consequently, the Commission
estimates that the majority of
interexchange service providers are
small entities that may be affected by
the rules adopted.
6. 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.154 Under the applicable SBA
size standard, such a business is small
if it has 1,500 or fewer employees.155
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.156 Thus, under this category
150 13
CFR 121.201, NAICS code 517110.
151 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ5&prodType=table.
152 See Trends in Telephone Service, at Table 5.3.
153 Id.
154 https://www.census.gov/cgi-bin/ssd/naics/
naicsrch.
155 13 CFR 121.201, NAICS code 517911.
156 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
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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.157 All 193 carriers
have 1,500 or fewer employees.158
Consequently, the Commission
estimates that the majority of prepaid
calling card providers are small entities
that may be affected by the rules
adopted.
7. 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.159 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.160 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.161 Of this total, an estimated
211 have 1,500 or fewer employees.162
Consequently, the Commission
estimates that the majority of local
resellers are small entities that may be
affected by the rules adopted.
8. 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.163 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.164 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
productview.xhtml?pid=ECN_2007_US_
51SSSZ5&prodType=table.
157 See Trends in Telephone Service, at Table 5.3.
158 Id.
159 13 CFR 121.201, NAICS code 517911.
160 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ5&prodType=table.
161 See Trends in Telephone Service, at Table 5.3.
162 Id.
163 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2007_US_51SSSZ5&prodType=table.
164 Id.
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engaged in the provision of toll resale
services.165 Of this total, an estimated
857 have 1,500 or fewer employees.166
Consequently, the Commission
estimates that the majority of toll
resellers are small entities that may be
affected by the rules adopted.
9. Other Toll Carriers. Neither the
Commission nor the SBA has developed
a definition 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 FRFA.
Under the applicable SBA size standard,
such a business is small if it has 1,500
or fewer employees.167 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.168 Thus, under this category
and the associated small business size
standard, the majority of Other Toll
Carriers can be considered small.
According to internally developed
Commission data, 284 companies
reported that their primary
telecommunications service activity was
the provision of other toll carriage.169 Of
these, an estimated 279 have 1,500 or
fewer employees.170 Consequently, the
Commission estimates that most Other
Toll Carriers are small entities that may
be affected by the rules and policies
adopted.
10. 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.171 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
165 Trends
in Telephone Service, at Table 5.3.
tkelley on DSK3SPTVN1PROD with RULES
166 Id.
167 13
CFR 121.201, NAICS code 517110.
168 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2007_US_51SSSZ5&prodType=table.
169 Trends in Telephone Service, at Table 5.3.
170 Id.
171 NAICS Code 517210. See https://
www.census.gov/cgi-bin/ssd/naics/naiscsrch.
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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.172 Of this total,
an estimated 261 have 1,500 or fewer
employees.173 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.
11. Cable Television and Other
Subscription Programming.174 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 andor providing access to
transmission facilities and infrastructure
that they own andor lease for the
transmission of voice, data, text, sound,
and video using wired
telecommunications networks.
172 Trends
in Telephone Service, at Table 5.3
173 Id.
174 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, was
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 the FY 2015 NPRM. 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. 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/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51I2&prodType=table.
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Fmt 4700
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55791
Transmission facilities may be based on
a single technology or a combination of
technologies.’’ 175 The SBA has
developed a small business size
standard for this category, which is: All
such firms having 1,500 or fewer
employees.176 Census data for 2007
shows that there were 3,188 firms that
operated that year. Of this total, 3,144
had fewer than 1,000 employees.177
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.
12. 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.178
Industry data indicate that there are
currently 4,600 active cable systems in
the United States.179 Of this total, all but
ten cable operators nationwide are small
under the 400,000-subscriber size
standard.180 In addition, under the
Commission’s rate regulation rules, a
‘‘small system’’ is a cable system serving
15,000 or fewer subscribers.181 Current
Commission records show 4,600 cable
systems nationwide.182 Of this total,
3,900 cable systems have less than
15,000 subscribers, and 700 systems
have 15,000 or more subscribers, based
on the same records.183 Thus, under this
standard as well, we estimate that most
cable systems are small entities.
13. Cable System Operators (Telecom
Act Standard). The Communications
Act of 1934, as amended, also contains
a size standard for small cable system
operators, which is ‘‘a cable operator
that, directly or through an affiliate,
serves in the aggregate fewer than 1
percent of all subscribers in the United
States and is not affiliated with any
entity or entities whose gross annual
175 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.
176 13 CFR 121.201, NAICS code 517110.
177 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2007_US–51SSSZ5&prodType=Table.
178 47 CFR 76.901(e).
179 August 15, 2015 Report from the Media
Bureau based on data contained in the
Commission’s Cable Operations And Licensing
System (COALS). See www/fcc.gov/coals.
180 See SNL KAGAN at Https://snl.cominter
activeXltoplcablelMSOslaspx?period2015
Q1&sortcol=subscribersbasic&sortorder=desc.
181 47 CFR 76.901(c)
182 See footnote 2, supra.
183 August 5, 2015 report from the Media Bureau
based on its research in COALS. See www.fcc.gov/
coals.
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revenues in the aggregate exceed
$250,000,000.’’ 184 There are
approximately 52,403,705 cable video
subscribers in the United States
today.185 Accordingly, an operator
serving fewer than 524,037 subscribers
shall be deemed a small operator if its
annual revenues, when combined with
the total annual revenues of all its
affiliates, do not exceed $250 million in
the aggregate.186 Based on available
data, we find that all but nine
incumbent cable operators are small
entities under this size standard.187 We
note that the Commission neither
requests nor collects information on
whether cable system operators are
affiliated with entities whose gross
annual revenues exceed $250
million.188 Although it seems certain
that some of these cable system
operators are affiliated with entities
whose gross annual revenues exceed
$250,000,000, we are unable at this time
to estimate with greater precision the
number of cable system operators that
would qualify as small cable operators
under the definition in the
Communications Act.
14. 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.189 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
184 47
CFR 901 (f) and notes ff. 1, 2, and 3.
SNL KAGAN at htpps://www.snl.com/
interactivex/MultichannelIndustryBench
marks.aspx.
186 47.901(f) and notes ff. 1, 2, and 3.
187 See SNL KAGAN at www.snl.com/Inter
activex/TopCable MSOs.aspx
188 The Commission does receive such
information on a case-by-case basis if a cable
operator appeals a local franchise authority’s
finding that the operator does not qualify as a small
cable operator pursuant to 76.901(f) of the
Commission’s rules. See 47 CFR 76.901(f).
189 https://www.census.gov/cgi-bin/ssssd/naics/
naicsrch.
tkelley on DSK3SPTVN1PROD with RULES
185 See
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16:04 Sep 16, 2015
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less.190 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.191 Thus, a majority of ‘‘All
Other Telecommunications’’ firms
potentially affected by the rules adopted
can be considered small.
D. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
15. This Report and Order does not
adopt any new reporting, recordkeeping,
or other compliance requirements.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
16. 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.192
17. This Report and Order does not
adopt any new reporting requirements.
Therefore no adverse economic impact
on small entities will be sustained based
on reporting requirements. There will be
a regulatory fee instituted on DBS
providers due to the adoption of a new
fee category, but we anticipate that the
two primary DBS companies required to
pay these fees are not small entities.
Similarly, a new regulatory fee for
Responsible Organizations (Resp. Org)
has also been instituted in FY 2015 for
the toll free number fee category that
was previously adopted—the fee rate
adopted is 12 cents per year. This is not
a new reporting requirement, and
should not have any adverse economic
impact on small Resp. Org. entities
because they are able to recover these
assessed fees from their customers.
18. In keeping with the requirements
of the Regulatory Flexibility Act, we
have considered certain alternative
means of mitigating the effects of fee
increases to a particular industry
segment. For example, beginning in FY
190 13
CFR 121.201; NAICS Code 517919.
191 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2007_US_51SSSZ5&prodType=table.
192 5 U.S.C. 603(c)(1) through (c)(4).
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Fmt 4700
Sfmt 4700
2015 the Commission has increased the
de minimis threshold from under $10 to
$500 (the total of all regulatory fees),
which will impact many small entities
that pay regulatory fees for ITSP, paging,
cellular, cable, and Low Power
Television/FM Translators. Historically,
many of these small entities have been
late in making their fee payments to the
Commission by the due date. This
increase in the de minimis threshold to
$500 will relieve regulatees both
financially and administratively.
Finally, regulatees may also seek
waivers or other relief on the basis of
financial hardship. See 47 CFR 1.1166.
F. Federal Rules That May Duplicate,
Overlap, or Conflict
19. None.
VIII. Ordering Clauses
20. 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 and Further Notice of Proposed
Rulemaking is hereby adopted.
21. It is further ordered that, as
provided in paragraph 41, this Report
and Order and Further Notice of
Proposed Rulemaking shall be effective
September 17, 2015.
22. It is further ordered that the
Commission’s Consumer &
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Report and Order, including the
Final Regulatory Flexibility Analysis, to
the Chief Counsel for Advocacy of the
U.S. Small Business Administration.
Federal Communications Commission.
Marlene H. Dortch.
Secretary.
List of Subjects in 47 CFR Part 1
Administrative practice and
procedure. Lawyers, Metric system,
Penalties, Reporting and recordkeeping
requirements, Telecommunications.
Rule Changes
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR, part 1 as
follows:
PART 1—PRACTICE AND
PROCEDURE
1. The authority citation for part 1
continues to read as follows:
■
Authority: 15 U.S.C. 79, et seq.; 47 U.S.C.
151, 154(i), 154(j), 155, 157, 160, 201, 225,
227, 303, 309, 332, 1403, 1404, 1451, 1452,
and 1455.
2. Section 1.1152 is revised to read as
follows:
■
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55793
§ 1.1152 Schedule of annual regulatory
fees for wireless radio services.
Fee amount 1
Exclusive use services (per license)
1. Land Mobile (Above 470 MHz and 220 MHz Local, Base Station & SMRS) (47 CFR part 90):
(a) New, Renew/Mod (FCC 601 & 159) .......................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .........................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...............................................................................................................
220 MHz Nationwide:
(a) New, Renew/Mod (FCC 601 & 159) .......................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .........................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...............................................................................................................
2. Microwave (47 CFR part 101) (Private):
(a) New, Renew/Mod (FCC 601 & 159) .......................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .........................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...............................................................................................................
3. Shared Use Services:
Land Mobile (Frequencies Below 470 MHz—except 220 MHz):
(a) New, Renew/Mod (FCC 601 & 159) .......................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .........................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...............................................................................................................
Rural Radio (Part 22):
(a) New, Additional Facility, Major Renew/Mod (Electronic Filing) (FCC 601 & 159) .................................................................
(b) Renewal, Minor Renew/Mod (Electronic Filing) (FCC 601 & 159) ........................................................................................
Marine Coast:
(a) New Renewal/Mod (FCC 601 & 159) .....................................................................................................................................
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159) .......................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...............................................................................................................
Aviation Ground:
(a) New, Renewal/Mod (FCC 601 & 159) ....................................................................................................................................
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159) .......................................................................................................
(c) Renewal Only (FCC 601 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Only) (FCC 601 & 159) .................................................................................................................
Marine Ship:
(a) New, Renewal/Mod (FCC 605 & 159) ....................................................................................................................................
(b) New, Renewal/Mod (Electronic Filing) (FCC 605 & 159) .......................................................................................................
(c) Renewal Only (FCC 605 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 605 & 159) ...............................................................................................................
Aviation Aircraft:
(a) New, Renew/Mod (FCC 605 & 159) .......................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159) .........................................................................................................
(c) Renewal Only (FCC 605 & 159) .............................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 605 & 159) ...............................................................................................................
4. CMRS Cellular/Mobile Services (per unit) (FCC 159) ....................................................................................................................
5. CMRS Messaging Services (per unit) (FCC 159) ...........................................................................................................................
6. Broadband Radio Service (formerly MMDS and MDS)
7. Local Multipoint Distribution Service ...............................................................................................................................................
3. Section 1.1153 is revised to read as
follows:
■
$30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
20.00
20.00
20.00
20.00
10.00
10.00
10.00
10.00
10.00
10.00
35.00
35.00
35.00
35.00
20.00
20.00
20.00
20.00
15.00
15.00
15.00
15.00
10.00
10.00
10.00
10.00
2 .17
3 .08
635
635
§ 1.1153 Schedule of annual regulatory
fees and filing locations for mass media
services.
tkelley on DSK3SPTVN1PROD with RULES
Fee amount
Radio [AM and FM] (47 CFR part 73):
1. AM Class A:
<=25,000 population ..............................................................................................................................................................
25,001–75,000 population .....................................................................................................................................................
75,001–150,000 population ...................................................................................................................................................
150,001–500,000 population .................................................................................................................................................
1 Note that ‘‘small fees’’ are collected in advance
for the entire license term. Therefore, the annual fee
amount shown in this table that is a small fee
(categories 1 through 5) must be multiplied by the
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5- or 10-year license term, as appropriate, to arrive
at the total amount of regulatory fees owed. Also,
application fees may apply as detailed in § 1.1102.
of this chapter.
PO 00000
Frm 00073
Fmt 4700
Sfmt 4700
$775
1,550
2,325
3,475
2 These are standard fees that are to be paid in
accordance with § 1.1157(b) of this chapter.
3 These are standard fees that are to be paid in
accordance with 1.1157(b) of this chapter.
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Fee amount
500,001–1,200,000 population ..............................................................................................................................................
1,200,001–3,000,000 population ...........................................................................................................................................
>3,000,000 population ...........................................................................................................................................................
2. AM Class B:
<=25,000 population ..............................................................................................................................................................
25,001–75,000 population .....................................................................................................................................................
75,001–150,000 population ...................................................................................................................................................
150,001–500,000 population .................................................................................................................................................
500,001–1,200,000 population ..............................................................................................................................................
1,200,001–3,000,000 population ...........................................................................................................................................
>3,000,000 population ...........................................................................................................................................................
3. AM Class C:
<=25,000 population ..............................................................................................................................................................
25,001–75,000 population .....................................................................................................................................................
75,001–150,000 population ...................................................................................................................................................
150,001–500,000 population .................................................................................................................................................
500,001–1,200,000 population ..............................................................................................................................................
1,200,001–3,000,000 population ...........................................................................................................................................
>3,000,000 population ...........................................................................................................................................................
4. AM Class D:
<=25,000 population ..............................................................................................................................................................
25,001–75,000 population .....................................................................................................................................................
75,001–150,000 population ...................................................................................................................................................
150,001–500,000 population .................................................................................................................................................
500,001–1,200,000 population ..............................................................................................................................................
1,200,001–3,000,000 population ...........................................................................................................................................
>3,000,000 population ...........................................................................................................................................................
5. AM Construction Permit ...........................................................................................................................................................
6. FM Classes A, B1 and C3:
<=25,000 population ..............................................................................................................................................................
25,001–75,000 population .....................................................................................................................................................
75,001–150,000 population ...................................................................................................................................................
150,001–500,000 population .................................................................................................................................................
500,001–1,200,000 population ..............................................................................................................................................
1,200,001–3,000,000 population ...........................................................................................................................................
>3,000,000 population ...........................................................................................................................................................
7. FM Classes B, C, C0, C1 and C2:
<=25,000 population ..............................................................................................................................................................
25,001–75,000 population .....................................................................................................................................................
75,001–150,000 population ...................................................................................................................................................
150,001–500,000 population .................................................................................................................................................
500,001–1,200,000 population ..............................................................................................................................................
1,200,001–3,000,000 population ...........................................................................................................................................
>3,000,000 population ...........................................................................................................................................................
8. FM Construction Permits ..........................................................................................................................................................
TV (47 CFR part 73) Digital TV (UHF and VHF Commercial Stations):
1. Markets 1 thru 10 .....................................................................................................................................................................
2. Markets 11 thru 25 ...................................................................................................................................................................
3. Markets 26 thru 50 ...................................................................................................................................................................
4. Markets 51 thru 100 .................................................................................................................................................................
5. Remaining Markets ..................................................................................................................................................................
6. Construction Permits ................................................................................................................................................................
Satellite UHF/VHF Commercial:
1. All Markets ................................................................................................................................................................................
Low Power TV, Class A TV, TV/FM Translator, & TV/FM Booster (47 CFR part 74) .......................................................................
4. Section 1.1154 is revised to read as
follows:
■
5,025
7,750
9,300
645
1,300
1,625
2,750
4,225
6,500
7,800
590
900
1,200
1,800
3,000
4,500
5,700
670
1,000
1,675
2,025
3,375
5,400
6,750
590
750
1,500
2,050
3,175
5,050
8,250
10,500
925
1,625
3,000
3,925
5,775
9,250
12,025
750
46,825
43,200
27,625
16,275
4,850
4,850
1,575
440
§ 1.1154 Schedule of annual regulatory
charges for common carrier services.
tkelley on DSK3SPTVN1PROD with RULES
Fee amount
Radio Facilities:
1. Microwave (Domestic Public Fixed) (Electronic Filing) (FCC Form 601 & 159) .....................................................................
Carriers:
1. Interstate Telephone Service Providers (per interstate and international end-user revenues (see FCC Form 499–A) ........
2. Toll Free Number Fee .............................................................................................................................................................
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$20.00.
$.00331.
.12 per Toll
Free Number.
Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Rules and Regulations
55795
§ 1.1155 Schedule of regulatory fees for
cable television services.
5. Section 1.1155 is revised to read as
follows:
■
Fee amount
1. Cable Television Relay Service ......................................................................................................................................................
2. Cable TV System, Including IPTV (per subscriber) ........................................................................................................................
3. Direct Broadcast Satellite (DBS) .....................................................................................................................................................
§ 1.1156 Schedule of regulatory fees for
international services.
6. Section 1.1156 is revised to read as
follows:
■
(a) The following schedule applies for
the listed services:
Fee category
Fee amount
Space Stations (Geostationary Orbit) ..................................................................................................................................................
Space Stations (Non-Geostationary Orbit) ..........................................................................................................................................
Earth Stations: Transmit/Receive & Transmit only (per authorization or registration) .......................................................................
(b) International Terrestrial and
Satellite. Regulatory fees for
International Bearer Circuits are to be
paid by facilities-based common carriers
that have active (used or leased)
international bearer circuits as of
December 31 of the prior year in any
terrestrial or satellite transmission
facility for the provision of service to an
end user or resale carrier, which
includes active circuits to themselves or
to their affiliates. In addition, noncommon carrier satellite operators must
pay a fee for each circuit sold or leased
to any customer, including themselves
or their affiliates, other than an
international common carrier
authorized by the Commission to
provide U.S. international common
carrier services. ‘‘Active circuits’’ for
Fee amount
Terrestrial Common Carrier Satellite Common Carrier Satellite Non-Common Carrier .....................................................................
(c) Submarine cable: Regulatory fees
for submarine cable systems will be
paid annually, per cable landing license,
for all submarine cable systems
operating as of December 31 of the prior
Fee amount
<2.5 Gbps ............................................................................................................................................................................................
2.5 Gbps or greater, but less than 5 Gbps .........................................................................................................................................
5 Gbps or greater, but less than 10 Gbps ..........................................................................................................................................
10 Gbps or greater, but less than 20 Gbps ........................................................................................................................................
20 Gbps or greater ..............................................................................................................................................................................
Final rule; announcement of
effective date.
ACTION:
In this document, the Federal
Communications Commission
(Commission) announces that the Office
of Management and Budget (OMB) has
approved, for a period of three years,
certain information collection
requirements associated with the
Commission’s Expanding the Economic
and Innovation Opportunities of
Spectrum Through Incentive Auctions
Report and Order (Incentive Auction
Report and Order), FCC 14–50. This
document is consistent with the
SUMMARY:
FEDERAL COMMUNICATIONS
COMMISSION
tkelley on DSK3SPTVN1PROD with RULES
47 CFR Parts 27 and 74
[GN Docket No. 12–268; FCC 14–50]
Expanding the Economic and
Innovation Opportunities of Spectrum
Through Incentive Auctions
Federal Communications
Commission.
AGENCY:
VerDate Sep<11>2014
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$0.03 per 64
KB Circuit.
year. The fee amount will be determined
by the Commission for each fiscal year.
Submarine cable systems
(capacity as of December 31, 2014)
BILLING CODE 6712–01–P
$119,150
132,125
310
these purposes include backup and
redundant circuits. In addition, whether
circuits are used specifically for voice or
data is not relevant in determining that
they are active circuits.
The fee amount, per active 64 KB
circuit or equivalent will be determined
for each fiscal year.
International terrestrial and satellite (capacity as of December 31, 2014)
[FR Doc. 2015–23312 Filed 9–16–15; 8:45 am]
$660.
0.96.
$.12 per subscriber.
$7,175
14,350
28,675
57,350
114,700
Incentive Auction Report and Order,
which stated that the Commission
would publish a document in the
Federal Register announcing OMB
approval and the effective date of to the
new information collection
requirements.
The amendments to 47 CFR
27.14(k), 27.14(t)(6), 27.17(c), 27.19(b),
27.19(c), 74.602(h)(5)(ii), and
74.602(h)(5)(iii), published at 79 FR
48442, August 15, 2014, are effective on
September 17, 2015.
FOR FURTHER INFORMATION CONTACT:
Cathy Williams by email at
DATES:
E:\FR\FM\17SER1.SGM
17SER1
Agencies
[Federal Register Volume 80, Number 180 (Thursday, September 17, 2015)]
[Rules and Regulations]
[Pages 55775-55795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-23312]
=======================================================================
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 15-121; FCC 15-108]
Assessment and Collection of Regulatory Fees for Fiscal Year 2015
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document the Commission revises its Schedule of
Regulatory Fees to recover an amount of $339,844,000 that Congress has
required the Commission to collect for fiscal year 2015. Section 9 of
the Communications Act of 1934, as amended, provides for the annual
assessment and collection of regulatory fees under sections 9(b)(2) and
9(b)(3), respectively, for annual ``Mandatory Adjustments'' and
``Permitted Amendments'' to the Schedule of Regulatory Fees.
DATES: Effective September 17, 2015. To avoid penalties and interest,
regulatory fees should be paid by the due date of September 24, 2015.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order (R&O), FCC 15-108, MD Docket No. 15-121, adopted on September
1, 2015 and released on September 2, 2015.
I. Administrative Matters
A. Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980 (RFA),\1\
the Commission has prepared a Final Regulatory Flexibility Analysis
(FRFA) relating to this Report and Order. The FRFA is contained towards
the end of this document.
---------------------------------------------------------------------------
\1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
The SBREFA was enacted as Title II of the Contract with America
Advancement Act of 1996 (CWAAA).
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B. Final Paperwork Reduction Act of 1995 Analysis
2. This document does not contain new or modified information
collection requirements subject to the Paperwork Reduction Act of 1995
(PRA), Public Law 104-13. In addition, therefore, it does not contain
any new or modified information collection burden for small business
concerns with fewer than 25 employees, pursuant to the Small Business
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C.
3506(c)(4).
C. Congressional Review Act
3. The Commission will send a copy of this Report and Order to
Congress and the Government Accountability
[[Page 55776]]
Office pursuant to the Congressional Review Act. 5 U.S.C. 801(a)(1)(A).
II. Introduction and Executive Summary
4. This Report and Order adopts a schedule of regulatory fees to
assess and collect $339,844,000 in regulatory fees for Fiscal Year (FY)
2015, pursuant to Section 9 of the Communications Act of 1934, as
amended (the Act or Communications Act) and the Commission's FY 2015
Appropriation.\2\ The schedule of regulatory fees for FY 2015 adopted
here is attached in Table C. These regulatory fees are due in September
2015.
---------------------------------------------------------------------------
\2\ Section 9 regulatory fees are mandated by Congress and
collected to recover the regulatory costs associated with the
Commission's enforcement, policy and rulemaking, user information,
and international activities. 47 U.S.C. 159(a). Public Law 113-235,
Consolidated and Further Continuing Appropriation Act of 2015 (FY
2015 Appropriation) (``Provided further, That $339,844,000 of
offsetting collections shall be assessed and collected pursuant to
section 9 of title I of the Communications Act of 1934, shall be
retained and used for necessary expenses and shall remain available
until expended.'').
---------------------------------------------------------------------------
5. The FY 2015 regulatory fees are based on the proposals in the FY
2015 NPRM,\3\ considered in light of the comments received and
Commission analysis. The FY 2015 regulatory fee schedule includes the
following noteworthy changes from prior years: (1) A reduction in
regulatory fees for the submarine cable/terrestrial and satellite
bearer circuit (IBC) category relative to other fee categories in the
International Bureau; (2) the first fee rate for Direct Broadcast
Satellite (DBS) as a subcategory of the cable television and Internet
Protocol Television (IPTV) regulatory fee category; (3) the first fee
rate for toll free numbers; and (4) the elimination of the regulatory
fee component of two fee categories: amateur radio Vanity Call Signs
and General Mobile Radio Service (GMRS).\4\ In addition, for FY 2015,
in calculating the fee schedule, the Commission also reallocated four
International Bureau full time employees (FTEs) \5\ from direct to
indirect.
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\3\ Assessment and Collection of Regulatory Fees for Fiscal Year
2015, Notice of Proposed Rulemaking, Report and Order, and Order, 30
FCC Rcd 5354 (2015) (FY 2015 NPRM, FY 2015 Fee Reform Report and
Order).
\4\ See FY 2015 Fee Reform Report and Order, 30 FCC Rcd at 5361-
62, paras. 19-22. As required by section 9(b)(4)(B) of the Act,
``permitted amendment'' letters were mailed June 4, 2015 and these
amendments will take effect 90 days after congressional
notification, i.e., September 3, 2015.
\5\ One FTE, a ``Full Time Equivalent'' or ``Full Time
Employee,'' is a unit of measure equal to the work performed
annually by a full time person (working a 40 hour workweek for a
full year) assigned to the particular job, and subject to agency
personnel staffing limitations established by the U.S. Office of
Management and Budget.
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III. Background
6. Congress adopted a regulatory fee schedule in 1993 \6\ and
authorized the Commission to assess and collect annual regulatory fees
pursuant to the schedule, as amended by the Commission.\7\ As a result,
the Commission annually reviews the regulatory fee schedule, proposes
changes to the schedule to reflect changes in the amount of its
appropriation, and proposes increases or decrease to the schedule of
regulatory fees.\8\ The Commission makes changes to the regulatory fee
schedule ``if the Commission determines that the schedule requires
amendment to comply with the requirements'' \9\ of section 9(b)(1)(A)
of the Act.\10\ The Commission may also 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.'' Thus, for each fiscal year,
the proposed fee schedule in the annual Notice of Proposed Rulemaking
(NPRM) will reflect changes in the amount appropriated for the
performance of the FCC's regulatory activities, changes in the
industries represented by the regulatory fee payers, changes in
Commission FTE levels, and any other issues of relevance to the
proposed fee schedule.\11\ After receipt and review of comments, the
Commission issues a Report and Order adopting the fee schedule for the
fiscal year and sets out the procedures for payment of fees.
---------------------------------------------------------------------------
\6\ 47 U.S.C. 159 (g) (showing original fee schedule prior to
Commission amendment).
\7\ 47 U.S.C. 159.
\8\ 47 U.S.C. 159(b)(1)(B).
\9\ 47 U.S.C. 159(b)(2).
\10\ 47 U.S.C. 159(b)(1)(A).
\11\ Section 9(b)(2) discusses mandatory amendments to the fee
schedule and Section 9(b)(3) discusses permissive amendments to the
fee schedule. Both mandatory and permissive amendments are not
subject to judicial review. 47 U.S.C. 159(b)(2) and (3).
---------------------------------------------------------------------------
7. The Commission calculates the fees by first determining the FTE
number of employees performing the regulatory activities specified in
section 9(a), ``adjusted to take into account factors that are
reasonably related to the benefits provided to the payor of the fee by
the Commission's activities . . . .'' \12\ FTEs are categorized as
``direct'' if they are performing regulatory activities in one of the
``core'' bureaus, i.e., the Wireless Telecommunications Bureau, Media
Bureau, Wireline Competition Bureau, and part of the International
Bureau. All other FTEs are considered ``indirect.'' \13\ The total FTEs
for each fee category is calculated by counting the number of direct
FTEs in the core bureau that regulates that category, plus a
proportional allocation of indirect FTEs. Next, the Commission
allocates the total amount to be collected among the various regulatory
fee categories. This allocation is based on the number of FTEs assigned
to work in each regulatory fee category. Each regulatee within a fee
category pays its proportionate share based on an objective measure,
e.g., revenues, number of subscribers, or licenses.\14\
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\12\ 47 U.S.C. 159(b)(1)(A). When section 9 was adopted, the
total FTEs were to be calculated based on the number of FTEs in the
Private Radio Bureau, Mass Media Bureau, and Common Carrier Bureau.
(The names of these bureaus were subsequently changed.) Satellites
and submarine cable were regulated through the Common Carrier Bureau
before the International Bureau was created.
\13\ The indirect FTEs are the employees from the International
Bureau (in part), Enforcement Bureau, Consumer & Governmental
Affairs Bureau, Public Safety & 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 1,041 indirect FTEs.
\14\ See Assessment and Collection of Regulatory Fees, Notice of
Proposed Rulemaking, 27 FCC Rcd 8458, 8461-62, paras. 8-11 (2012)
(FY 2012 NPRM).
---------------------------------------------------------------------------
8. As part of its annual review, the Commission regularly seeks to
improve its regulatory fee analysis.\15\ For example, in the FY 2013
Report and Order, the Commission adopted updated FTE allocations to
more accurately reflect the number of FTEs working on regulation and
oversight of the regulatees in the various fee categories,\16\ combined
the UHF and VHF television stations into one regulatory fee
category,\17\ and created a fee category to include IPTV.\18\
Subsequently, in the FY 2014 Report and Order and FNPRM, the Commission
adopted a new fee category for toll free numbers,\19\ increased the de
minimis threshold,\20\ and eliminated several categories from the
regulatory fee
[[Page 55777]]
schedule.\21\ Earlier this year, in our FY 2015 Fee Reform Report and
Order, we added a subcategory for DBS providers in the cable television
and IPTV regulatory fee category.\22\
---------------------------------------------------------------------------
\15\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, MD Docket No. 08-65, Report and Order and Further Notice
of Proposed Rulemaking, 24 FCC Rcd 6388 (2008) (FY 2008 Further
Notice).
\16\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2013, MD Docket No. 08-65, Report and Order, 28 FCC Rcd 12351,
12354-58, paras. 10-20 (2013) (FY 2013 Report and Order).
\17\ FY 2013 Report and Order, 28 FCC Rcd at 12361-62, paras.
29-31.
\18\ Id., 28 FCC Rcd at 12362-63, paras. 32-33.
\19\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2014, Report and Order and Further Notice of Proposed
Rulemaking, 29 FCC Rcd 10767, 10777-79, paras. 25-28 (2014) (FY 2014
Report and Order and FNPRM).
\20\ FY 2014 Report and Order and FNPRM, 29 FCC Rcd at 10774-76,
paras. 18-21.
\21\ Id., 29 FCC Rcd at 10776-77, paras. 22-24.
\22\ FY 2015 Fee Reform Report and Order, 30 FCC Rcd at 5364-
5373, paras. 28-41. We also eliminated two additional fee
categories. See id., 30 FCC Rcd at 5361-62, paras. 19-22.
---------------------------------------------------------------------------
9. In our FY 2015 NPRM, we proposed to collect $339,844,000 in
regulatory fees and included a detailed, proposed fee schedule. We also
sought comment on (1) a proposal revising the apportionment between the
submarine cable/terrestrial and satellite bearer circuits fee category
and the space station/earth station fee category; (2) revising an
apportionment of regulatory fees among broadcasters; (3) a request for
relief from regulatory fee assessments for radio stations in Puerto
Rico filed by the Puerto Rico Broadcasters Association (PRBA); \23\ (4)
raising earth station regulatory fees relative to space station fees;
\24\ (5) a new regulatory fee for toll free numbers; (6) a new
regulatory fee for DBS (as a subcategory in the cable television and
IPTV regulatory fee category); and (7) whether certain FTEs should be
allocated as direct instead of indirect.\25\ We received 13 comments
and eight reply comments. The list of commenters is attached in Table
A.
---------------------------------------------------------------------------
\23\ 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).
\24\ Earth station fees were previously increased by 7.5
percent. See FY 2014 Report and Order, 29 FCC Rcd at 10772-73, para.
12.
\25\ This issue was raised previously. See, e.g., FY 2014 NPRM,
29 FCC Rcd at 6425-27, paras. 22-27.
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IV. Report And Order
A. Discussion
1. FY 2015 Regulatory Fees
10. In this Report and Order, we adopt a regulatory fee schedule
for FY 2015, pursuant to Section 9 of the Communications Act and our FY
2015 appropriation statute in order to collect $339,844,000 in
regulatory fees.\26\ Of this amount, we project approximately $18.56
million (5.45 percent of the total FTE allocation) in fees from the
International Bureau regulatees; \27\ $69.07 million (20.28 percent of
the total FTE allocation) in fees from the Wireless Telecommunications
Bureau regulatees; \28\ $132.81 million (38.99 percent of the total FTE
allocation) from Wireline Competition Bureau regulatees; \29\ and
$120.15 million (35.28 percent of the total FTE allocation) from the
Media Bureau regulatees.\30\ These regulatory fees are due in September
2015. The schedule of regulatory fees for FY 2015 adopted here is
attached as Table C.
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\26\ Section 9 regulatory fees are mandated by Congress and
collected to recover the regulatory costs associated with the
Commission's enforcement, policy and rulemaking, user information,
and international activities. 47 U.S.C. 159(a).
\27\ Includes satellites, earth stations, and international
bearer circuits (submarine cable systems and satellite and
terrestrial bearer circuits).
\28\ Includes Commercial Mobile Radio Service (CMRS), CMRS
messaging, Broadband Radio Service/Local Multipoint Distribution
Service (BRS/LMDS), and multi-year wireless licensees.
\29\ Includes Interstate Telecommunications Service Providers
(ITSP) and toll free numbers.
\30\Includes AM radio, FM radio, television, low power/FM, cable
and IPTV, DBS, and Cable Television Relay Service (CARS) licenses.
---------------------------------------------------------------------------
2. Toll Free Numbers
11. In the FY 2014 Report and Order and FNPRM,\31\ we adopted a
regulatory fee category for each toll free number managed by a
RespOrg.\32\ In the FY 2015 NPRM, we sought comment on a regulatory fee
of 12 cents per toll free number.\33\ In this Report and Order, we
adopt the proposed fee of 12 cents per toll free number.
---------------------------------------------------------------------------
\31\ FY 2014 Report and Order and FNPRM, 29 FCC Rcd at 10777-79,
paras. 25-28. We adopted this category for working, assigned, and
reserved toll free numbers and for toll free numbers that are in the
``transit'' status, or any other status as defined in section 52.103
of the Commission's rules. The regulatory fee, assessed on RespOrgs,
for toll free numbers is limited to toll free numbers that are
accessible within the United States.
\32\ A Responsible Organization or RespOrg is a company that
manages toll free telephone numbers for subscribers. They use the
SMS/800 data base to verify the availability of specific numbers and
to reserve the numbers for subscribers. See 47 CFR 52.101(b). ITTA
contends that ``it makes no sense to collect this fee from entities
that already pay regulatory fees as ITSPs.'' ITTA Comments at 7-8.
In the FY 2014 Report and Order and FNPRM, 29 FCC Rcd 10767, 10777-
79, paras. 25-28, we explained the issue in some detail. In
particular, we noted that there may be many toll free numbers
controlled or managed by entities, Responsible Organizations or
RespOrgs, that in some cases are not carriers. As a result, the
Commission adopted a regulatory fee on Resp Orgs, for each toll free
number, because there appears to be many toll free numbers
controlled or managed by Resp Orgs that are not carriers, and
therefore, have not been paying regulatory fees. Commission FTEs in
the Wireline Competition Bureau and the Enforcement Bureau work on
toll free numbering issues and other related activities. Because
Commission FTEs work on toll free number regulation, we adopted a
regulatory fee category for toll free numbers to recover the
associated costs. It is also important to note that the amount
assessed for toll free numbers reduces the total regulatory fee
assessment for ITSPs. In the FY 2014 Report and Order and FNPRM, we
stated that: ``Based on evaluation, the FTEs involved in toll free
issues are primarily from the Wireline Competition Bureau. . . .
Accordingly, a regulatory fee assessed on toll free numbers reduces
the ITSP regulatory fee total.'' FY 2014 Report and Order and FNPRM,
29 FCC Rcd at 10778, para. 27 (footnote omitted).
\33\ FY 2015 NPRM, 30 FCC Rcd at 5358, para. 10.
---------------------------------------------------------------------------
3. Submarine Cable
12. In the FY 2014 Report and Order and FNPRM, we concluded that
the regulatory fee assessment for the submarine cable/terrestrial and
satellite bearer circuits fee category did not fairly take into account
the Commission's minimal oversight and regulation of the international
bearer circuit (IBC) industry. Accordingly, we reduced the total
regulatory fee apportionment for submarine cable/terrestrial and
satellite bearer circuits by five percent and stated that we would
revisit the issue to determine if additional adjustment is
warranted.\34\ Subsequently, in the FY 2015 NPRM, we sought comment on
further reducing the regulatory fee allocation for the submarine cable/
terrestrial and satellite bearer circuit fee category.\35\ In
particular, we observed that after the initial licensing process, the
regulatory activity concerning submarine cable/terrestrial and
satellite bearer circuit systems is primarily limited to reviewing the
Circuit Capacity Reports \36\ and quarterly reports filed by
licensees.\37\ Based on our tentative conclusion that the fee remained
excessive relative to the minimal Commission oversight and regulation
of this industry, we proposed another five percent decrease in
fees.\38\
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\34\ See FY 2014 Report and Order and FNPRM, 29 FCC Rcd at
10772, para. 11.
\35\ See FY 2014 Report and Order and FNPRM, 29 FCC Rcd at
10772, para. 11.
\36\ See 47 CFR 43.62(a)(2); Reporting Requirements for U.S.
Providers of International Telecommunications Services; Amendment of
Part 43 of the Commission's Rules, IB Docket No. 04-112, Second
Report and Order, 28 FCC Rcd 575, 601-08, paras. 89-108 (2013)
(Second Report and Order); id. at 604, para. 98 (noting that
submarine cable capacity holders will report circuit capacity,
rather than circuit status, going forward), recon. dismissed, Order,
DA 15-711 (Int'l Bur. rel. June 17, 2015).
\37\ See 47 CFR 1.767(l).
\38\ FY 2015 NPRM, 30 FCC Rcd at 5358-59, para. 12.
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13. NASCA, representing submarine cable operators,\39\ argues that
the proposed fee remains excessive because the industry would be
responsible for 27.6 percent of all International Bureau regulatory
fees.\40\ Commenters also contend that the apportionment of regulatory
fees for submarine cable operators and terrestrial and satellite bearer
circuits remains too high due to the small number of FTEs working on
[[Page 55778]]
those services.\41\ Some commenters observe as well that the high
regulatory fees imposed on the submarine cable operators can place the
United States at a competitive disadvantage because Canada and Mexico
have much lower fees and the submarine cable industry may choose to
land new cables in those countries instead.\42\ Commenters suggest that
this could pose national security issues if the submarine cable
operators choose to build out in Canada and Mexico, because those
facilities would not be subject to the Communications Assistance for
Law Enforcement Act, commonly known as CALEA.\43\ EchoStar contends
that we have not supported our proposal to reduce the IBC fees with
sufficient facts.\44\
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\39\ NASCA Comments at 2-3. (NASCA represents operators with 30
of the 42 active systems landing in the United States.)
\40\ NASCA Comments at 9.
\41\ NASCA Comments at 11-13; Coalition Comments at 4-7 & Reply
Comments at 3. (The Coalition consists of Cedar Cable Ltd., Columbus
Networks USA, Inc., GlobeNet Cabos Submarinos America, Inc., and GU
Holdings Inc.).
\42\ Coalition Comments at 8.
\43\ Coalition Comments at 8.
\44\ EchoStar Comments at 5.
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14. In 2009, the Commission adopted a new regulatory fee
methodology for submarine cable based on a proposal by a large group of
submarine cable operators.\45\ Under this methodology, after we
apportion the IBC revenue requirement between the terrestrial and
satellite facilities and submarine cable, we assess the submarine cable
systems on a per cable landing license basis, with higher fees for
larger systems and lower fees for smaller systems (the regulatory fees
for terrestrial and satellite facilities are still assessed on a per
bearer circuit basis).\46\ The regulatory fees that are now paid by the
submarine cable operators cover the services provided to common
carriers using the submarine cable circuits in addition to the services
that the International Bureau provides to submarine cable operators.
The International Bureau's regulatory activity concerning submarine
cable includes licensing,\47\ reviewing the Circuit Capacity Reports
\48\ and filed quarterly reports.\49\ In addition, all International
Bureau services provided to common carriers using the submarine cable
circuits, such as benchmarks enforcement,\50\ protection from
anticompetitive actions by foreign carriers, foreign ownership rulings
(Petitions for Declaratory Rulings, or PDRs), section 214
authorizations, and bilateral and multilateral negotiations and
representation of U.S. interests at international organizations, are
all provided by the International Bureau on behalf of the common
carriers using submarine cable circuits. Upon this further analysis, we
conclude that our previous estimate of two FTEs working on IBC issues
discussed in FY 2014 Report and Order, did not take these issues into
account.\51\ Nevertheless, as we have discussed previously in the FY
2013 NPRM, FY 2014 NPRM, and the FY 2015 NPRM,\52\ the oversight and
regulation of the IBC industry may warrant additional adjustment to the
fee allocation. For the reasons discussed above, we reduce the
regulatory fee apportionment for submarine cable/terrestrial and
satellite bearer circuits by 7.5 percent to more accurately reflect the
regulation and oversight for the industry.\53\ This analysis reflects
both the direct work on submarine cable/terrestrial and satellite
bearer circuit issues and other common carrier issues by International
Bureau FTEs and the indirect FTEs that devote their time to
International Bureau regulatees as a whole. We find that this decrease
in the regulatory fees paid by IBCs more accurately reflects the level
of regulation and oversight for this industry. Also, we reject the
speculation that failure to reduce regulatory fees as much as the
submarine cable operators might prefer could lead to a change in the
cable landing locations. We also reject EchoStar's statement that our
proposal lacked factual support. As noted above, the regulatory
oversight of this fee category has been explained in detail in this,
and prior proceedings,\54\ and has been the subject of comments by
submarine cable operators for a number of years.
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\45\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, Second Report and Order, 24 FCC Rcd 4208 (2009)
(Submarine Cable Order).
\46\ Submarine Cable Order, 24 FCC Rcd at 4214-17, paras. 13-22.
\47\ The International Bureau reviews, processes, analyzes, and
grants applications for submarine cable landing license
applications, transfers, assignments, and modifications. The bureau
also coordinates processing of submarine cable landing license
applications with the relevant Executive Branch agencies.
\48\ See Second Report and Order, 28 FCC Rcd at 601-08, paras.
89-108.
\49\ See 47 CFR 1.767(l). The International Bureau reviews Part
43 submarine cable circuit capacity and traffic and revenue filings,
and compiles and publishes annual industry analysis reports based on
that data.
\50\ See, e.g., International Settlement Rates, IB Docket No.
96-261, Report and Order, FCC 97-280, 12 FCC Rcd 19806 (1997)
(Benchmarks Order); Report and Order on Reconsideration and Order
Lifting Stay, 14 FCC Rcd 9256 (1999) (Benchmarks Reconsideration
Order); aff'd sub nom. Cable & Wireless, 166 F.3d 1224.
\51\ FY 2014 Report and Order, 29 FCC Rcd at 10772, para. 11.
\52\ FY 2013 NPRM, 28 FCC Rcd at 7800-7803, paras. 24-29; FY
2014 NPRM, 29 FCC Rcd at 6427-28, para. 28; FY 2015 NPRM, 30 FCC Rcd
at 5358-59, para. 12.
\53\ The actual decrease is higher than 7.5 percent due to the
reallocation of four direct FTEs, discussed in paragraph 25, because
the submarine cable percentage of International Bureau regulatory
fees was 31.36 percent in FY 2014 and will be 24.85 percent in 2015,
a reduction of more than 20 percent.
\54\ See FY 2013 NPRM, 28 FCC Rcd at 7800-7803, paras. 24-29; FY
2014 NPRM, 29 FCC Rcd at 6427-28, para. 28; FY 2015 NPRM, 30 FCC Rcd
at 5358-59, para. 12.
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4. Earth Stations
15. In the FY 2014 NPRM, the Commission recognized that the
International Bureau's oversight and regulation of the satellite
industry involves FTEs working on legal, technical, and policy issues
pertaining to both space station and earth station operations and is
therefore interdependent to some degree.\55\ For that reason, we sought
comment on whether we should increase the earth station regulatory fee
allocation in order to reflect more appropriately the number of FTEs
devoted to the regulation and oversight of the earth station portion of
the satellite industry.\56\ In the FY 2014 regulatory fee proceeding,
we increased the regulatory fees paid by earth station licensees by
approximately 7.5 percent based on our analysis and review of the
record.\57\
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\55\ FY 2014 NPRM, 29 FCC Rcd at 6428, para. 29.
\56\ Id., 29 FCC Rcd at 6428, para. 29.
\57\ See FY 2014 Report and Order, 29 FCC Rcd at 10772-73, para.
12.
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16. In the FY 2015 NPRM, we sought comment on whether to raise the
earth station regulatory fees again.\58\ We find, however, that this
issue requires further analysis. In particular, due to comments
suggesting that we adopt different regulatory fees for different types
of earth stations and an ongoing proceeding concerning Part 25
(Satellite Communications) of the Commission's rules which may affect
the distribution of FTE work, we plan to further examine and consider
this issue for FY 2016.\59\ In doing so, we intend to seek comment on
EchoStar's proposal to assess different levels of regulatory fees on
different types of earth station licenses.\60\
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\58\ FY 2015 NPRM, 30 FCC Rcd at 5360, para. 14.
\59\ See EchoStar July 20, 2015 ex parte.
\60\ See EchoStar July 20, 2015 ex parte.
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5. FTE Reallocations
17. As explained above in paragraph five, we calculate regulatory
fees by classifying FTEs either as direct or indirect. FTEs classified
as direct are further associated with one of the core bureaus. The
Commission now updates FTE allocations on an annual basis to more
accurately reflect the number of FTEs working on regulation and
oversight of the regulatees in the various fee categories.\61\ The
Commission has
[[Page 55779]]
also previously determined that some of the International Bureau FTEs
should be considered indirect instead of direct.\62\ We find that apart
from the unique nature of the International Bureau FTEs, the work of
all the FTEs in a core bureau contributes to the cost of regulating and
overseeing the licensees of that bureau. Therefore, we may reasonably
expect that the work of the FTEs in the core bureaus would remain
focused on the industry segment regulated by each of those bureaus. The
work of the FTEs in the remaining (i.e., indirect) bureaus and offices
benefits the Commission and the telecommunications industry and is not
specifically focused on the licensees of a particular core bureau.
Given the significant implications of reassignment of FTEs in our fee
calculation, we make changes to FTE classifications only after
performing considerable analysis and finding the clearest case for
reassignment.\63\
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\61\ FY 2013 Report and Order, 28 FCC Rcd at 12355-56, para. 14.
\62\ FY 2013 Report and Order, 28 FCC Rcd at 12356, para. 14.
\63\ FY 2013 Report and Order, 28 FCC Rcd at 12357, para. 19.
The Commission observed that the International Bureau was a
``singular case'' because the work of those FTEs ``primarily
benefits licensees regulated by other bureaus.'' Id., 28 FCC Rcd at
12355, para. 14.
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a. Request To Characterize Indirect FTEs as Direct FTEs
18. SIA and EchoStar propose that we consider FTEs working in
certain divisions of the Enforcement Bureau and the Consumer &
Governmental Affairs Bureau and the Office of Engineering & Technology
(i.e., indirect FTEs) as direct FTEs, associated with a core bureau for
purposes of regulatory fee calculation.\64\ SIA contends that the work
in the Market Disputes Resolution Division ``is limited to complaints
against common carriers and pole attachment disputes'' \65\ and the
``Telecommunications Consumers Division focuses on protecting consumers
from fraudulent, misleading, and other harmful practices involving
telecommunications, such as slamming.'' \66\ SIA's description of these
two Enforcement Bureau divisions underestimates the range of issues
that they investigate.\67\ EchoStar argues that the Office of
Engineering & Technology's regulatory work suggests that ``no more than
7 percent of the applicable FTEs for the OET should be allocated to
space-related IB licensees.'' \68\ This proposal raised by SIA and
EchoStar involves more than an analysis of two divisions and one office
but rather would require an assessment of how all work done by FTEs in
a bureau or office not classified as a core bureau could be associated
with the work of a core bureau, such that additional FTEs could be
allocated to the core bureau. However, FTEs are assigned as indirect in
our regulatory fee calculation where the FTEs work on a variety of
issues that cannot be attributed to one particular type of industry or
regulatee at this time.
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\64\ SIA Comments at 8-11; EchoStar Comments at 3-4. CTIA
observes that excluding one type of licensee, such as satellite
providers, from contributing to indirect costs would threaten the
administrability of the regulatory fee program. CTIA Reply Comments
at 5. We interpret this proposal as asking us to determine how many
indirect FTEs work on issues pertaining to all core bureau
licensees.
\65\ SIA Comments at 8.
\66\ SIA Comments at 8.
\67\ For a brief description of the Enforcement Bureau
divisions, see https://www.fcc.gov/encyclopedia/enforcement-bureau-organization.
\68\ EchoStar Comments at 4. We note that currently
International Bureau licensees are 5.43% of the direct FTEs and
therefore 5.43% of the indirect FTEs are assigned to the
International Bureau licensees, which is lower than the 7% EchoStar
is proposing.
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19. The Enforcement Bureau and Consumer & Governmental Affairs FTEs
and other indirect FTEs, such as those in the Office of Engineering &
Technology, work on a wide range of matters, not all directly
assignable to a particular core bureau. We recognize that before the
Enforcement Bureau was created, the core bureaus each had an
enforcement division and those FTEs would have been assigned to those
core bureaus. Currently, however, most enforcement activity is
consolidated into the Enforcement Bureau, therefore the FTEs may work
on a range of issues and many of their investigations cannot be
assigned to a specific core bureau, e.g., investigations that involve
more than one service. While SIA suggests that we might track informal
complaints filed in the Consumer & Governmental Affairs Bureau and
associate them with a core licensing bureau based on the number of
informal complaints in each category over a certain time period,\69\ we
find that this would not be feasible at this time because the types of
informal complaints can vary considerably and often cover areas that
are not specifically correlated with one core bureau, e.g., billing
issues for bundled services. For these reasons, we conclude that
reallocating indirect FTEs as direct as suggested by EchoStar and SIA
is not feasible at this time. However, we will continue to analyze this
issue in future regulatory fee proceedings.
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\69\ SIA Comments at 10.
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b. Request To Associate Direct FTEs With a Different Core Bureau
20. NAB notes that the FTEs in the Media Bureau who work on issues
pertaining to the upcoming spectrum incentive auction to repurpose
broadcast television spectrum to wireless use should be reallocated to
the Wireless Telecommunications Bureau for regulatory fee purposes.\70\
SIA asks us to ``re-evaluate whether it is appropriate to exclude
auction FTEs in assessing direct costs.'' \71\ FTE time devoted to
developing and implementing the upcoming spectrum incentive auction-
direct and indirect costs-is not included in the calculation of fees
and is not offset by the collection of regulatory fees. Instead, time
devoted to developing and implementing the incentive auction is tracked
separately from other work performed by Media Bureau and other FTEs and
is offset by the auction proceeds that the Commission is permitted to
retain pursuant to section 309(j)(8) of the Communications Act and the
Commission's annual appropriation statute.\72\ Thus, the Commission is
unable, as a legal matter, to implement these proposals.
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\71\ SIA Comments at 12.
\72\ See, e.g. the FCC's FY 2015 appropriation statute, the
Consolidated and Further Continuing Appropriations Act, 2015, Public
Law 113-235, 128 Stat. 2130 (2014).
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6. DBS Rate Issues
21. In the FY 2015 NPRM, we sought comment on setting the initial
rate for DBS regulatory fees, as a subset of the cable television and
IPTV category, at 12 cents per year, or one cent per month.\73\ Several
commenters contend that we should require DBS operators to pay the same
rate as cable television and IPTV.\74\ DBS commenters contend that
paying the same rate as cable television/IPTV would cause ``rate
shock'' and if we adopt a fee it should be 12 cents as proposed.\75\
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\73\ FY 2015 NPRM, 30 FCC Rcd at 5358, para. 9.
\74\ NCTA & ACA Comments at 2-6 & Reply Comments at 4-6; ITTA
Comments at 5-7.
\75\ DIRECTV Comments at 3-5 & Reply Comments at 3-4 (arguing
that if we adopt a fee it should be the 12 cents proposed); DISH
Reply Comments at 4-5.
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22. When adopting the new regulatory fee subcategory for DBS within
the cable and IPTV category, we determined a variety of regulatory
developments have increased the amount of regulatory activity by the
Media Bureau FTEs involving regulation and oversight of MVPDs,
including DBS providers.\76\ For example, DBS providers (and cable
television operators) are permitted to file program access
complaints\77\ and complaints seeking relief under the retransmission
consent good faith
[[Page 55780]]
rules.\78\ In addition, DBS providers are subject to MVPD requirements
such as those pertaining to program carriage \79\ and the requirement
to negotiate retransmission consent in good faith.\80\ More recently,
the Commission adopted a host of requirements that apply to all MVPDs
and thus equally apply to DBS providers as part of its implementation
of the Commercial Advertisement Loudness Mitigation Act (CALM Act),\81\
the Twenty-First Century Communications and Video Accessibility Act of
2010 (CVAA),\82\ as well as the Satellite Television Extension and
Localism Act (STELA) Reauthorization Act of 2014 (STELAR).\83\
Moreover, we recognize that FY 2015 would be the first time the
Commission would be applying this regulatory fee subcategory for DBS.
Thus, for the above reasons, we find that for FY 2015 the proposed rate
of 12 cents per subscriber per year is a sensible fee supported by data
and analysis.\84\ In the FY 2016 regulatory fee proceeding, we will
update this rate for future years, based on relevant information, as
necessary for ensuring an appropriate level of regulatory parity and
considering the resources dedicated to this new regulatory fee
subcategory.\85\
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\76\ See FY 2015 Fee Reform Report and Order, 30 FCC Rcd at
5367-68, para. 31.
\77\ 47 U.S.C. 548; 47 CFR 76.1000-1004.
\78\ 47 U.S.C. 325(b)(1), (3)(C)(ii); 47 CFR 76.65(b).
\79\ 47 U.S.C. 536; 47 CFR 76.1300-1302.
\80\ 47 U.S.C. 325(b)(3)(C)(iii); 47 CFR 76.65(a)-(b).
\81\ See Implementation of the Commercial Advertisement,
Loudness Mitigation (CALM) Act, Report and Order, 26 FCC Rcd 17222
(2011) (CALM Act Report and Order).
\82\ Public Law 111-260, 124 Stat. 2751 (2010). See also
Amendment of Twenty-First Century Communications and Video
Accessibility Act of 2010, Public Law 111-265, 124 Stat. 2795 (2010)
(making corrections to the CVAA); 47 CFR part 79.
\83\ The STELA Reauthorization Act of 2014 (STELAR), 102, Public
Law 113-200, 128 Stat. 2059, 2060-62 (2014) (codified at 47 U.S.C.
338(1)). The STELAR was enacted on Dec. 4, 2014 (H.R. 5728, 113th
Cong.). Implementation of Section 102 of the STELA Reauthorization
Act of 2014, Notice of Proposed Rulemaking, MB Docket No. 15-71, FCC
15-34 (released Mar. 26, 2015) proposes satellite television
``market modification'' rules to implement section 102 of STELAR.
\84\ See FY 2015 Fee Reform Report and Order, 30 FCC Rcd at
5367-5373, paras. 31 to 41. The agency is not required to calculate
its costs with ``scientific precision.'' Central & Southern Motor
Freight Tariff Ass'n v. United States, 777 F.2d 722, 736 (D.C. Cir.
1985). Reasonable approximations will suffice. Id.; Mississippi
Power & Light, 601 F.2d at 232; National Cable Television Ass'n v.
FCC, 554 F.2d 1094, 1105 (D.C. Cir. 1976); 36 Comp. Gen. 75 (1956).
\85\ See FY 2015 Fee Reform Report and Order, 30 FCC Rcd at
5371-72, para. 38
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7. Other Rate Issues
23. Aviation Ground Licenses. In the FY 2015 NPRM, we proposed an
increase in regulatory fees for aviation ground licenses. Commenters
contend that we have proposed an unjustified and disproportionate fee
increase for aviation ground licensees.\86\ The Aviation Joint
Commenters disagree with our contention that the payment units should
be adjusted and they observe that we failed to explain why the revenue
requirement was increased.\87\ These commenters observe that despite no
increase in regulation of this industry, the Commission has
significantly increased the regulatory fees in FY 2014 and FY 2015.\88\
We agree with the Aviation Joint Commenters and, after reviewing
additional information, have adjusted the payment units and rate
accordingly based on current fiscal year renewals.
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\86\ Aviation Joint Comments at 4-12.
\87\ Aviation Joint Comments at 5-6.
\88\ Aviation Joint Comments at 6-9.
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24. Satellite. Several commenters have raised issues pertaining to
the proposed space station fees. SIA and EchoStar object to the
proposed increase in fees, contending that we should cap any increases
at 7.5 percent.\89\ These commenters argue that we should adopt the
same cap we adopted for FY 2013. In FY 2013, the 7.5% cap was
instituted to address the initial changes in the FTE allocations (not
fee rate changes resulting from changes in the unit counts) as a result
of GAO recommendations.\90\ Such FTE allocation changes could have
caused some regulatory fee rates to increase dramatically. To address
this issue, the Commission capped the fee rate increase to 7.5% from
the prior year. In the current proceeding, some satellite commenters
requested that the Commission adopt a 7.5% cap on FY 2015 regulatory
fee increases as the Commission did in FY 2013 with respect to the Non-
Geostationary Space Station fee category. Although the circumstances in
which we instituted the cap in FY 2013 are different than now, any
discussion of imposing a cap at this time is not necessary because the
satellite fee rate in the FY 2015 Report and Order is nearly the same
or slightly lower than in FY 2014. We therefore decline to adopt a cap
in this instance.
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\89\ SIA Comments at 6-7; EchoStar Comments at 6-8.
\90\ General Accountability Office, ``Federal Communications
Commission, Regulatory Fee Process Needs to be Updated'', GAO 12-
686, August 2012, p. 1, 8-11.
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25. Intelsat asks that we take satellite application fees \91\ into
consideration in calculating our regulatory fees.\92\ We are required
to assess and collect $339,844,000 in regulatory fees for FY 2015,
pursuant to Section 9 of the Communications Act and the Commission's FY
2015 Appropriation.\93\ Thus, we are not able to collect less than
mandated by Congress in order to take into account section 8
application fees, as Intelsat requests.
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\91\ Application fees are assessed under Section 8 of the
Communications Act. 47 U.S.C. 158 and are paid directly into the
general fund of the U.S. Treasury. 47 U.S.C. 158(e). The Commission
is not authorized to retain receipts from application fees for its
own use or to use application fees to offset its appropriation.
\92\ Intelsat Comments at 1-2.
\93\ Section 9 regulatory fees are mandated by Congress and
collected to recover the regulatory costs associated with the
Commission's enforcement, policy and rulemaking, user information,
and international activities. 47 U.S.C. 159(a).
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26. In addition, Intelsat argues that U.S.-licensed satellite
operators should not have to subsidize the non-U.S.-licensed satellite
operators' ability to serve the U.S. market.\94\ We have sought comment
previously on this issue because the number of International Bureau
FTEs working on non-U.S.-licensed space stations increases the
regulatory fees for the International Bureau regulatees.\95\ We also
note that non-U.S.-licensed space stations that have been granted
access to the U.S. market will eventually communicate with earth
stations in the United States, and therefore aspects of the
interrelated communications system are apportioned to earth station
licensees when accounting for FTE time spent processing requests to
access the non-U.S. licensed space station. We conclude that due to:
(i) The time spent by International Bureau FTEs in working on these
issues; and (ii) the significant number of requests to access the U.S.
market by non-U.S.-licensed space stations, the FTEs working on
petitions or other matters involving non-U.S.-licensed space stations
should be removed from the regulatory fee assessments for U.S.-licensed
space stations and considered indirect for regulatory fee purposes.
Non-U.S.-licensed space stations granted access to the market in the
United States provide a variety of services. Attributing such FTE work
as indirect appropriately attributes the regulatory fee burden to the
wider telecommunications industry that benefits from such grants of
market access. We have reviewed the number of FTEs working on the non-
U.S.-licensed space stations and have determined that approximately
four FTEs are devoted to this work at this time, therefore, we are
reallocating four International Bureau FTEs as indirect FTEs for
regulatory fee purposes.\96\
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\94\ Intelsat Comments at 3-4.
\95\ See FY 2014 NPRM, 29 FCC Rcd at 6434, para. 50.
\96\ The number of market access requests can vary; however,
four FTEs is appropriate at this point.
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[[Page 55781]]
8. Puerto Rico Broadcasters Association Petition
27. In the FY 2015 NPRM, we sought comment on the petition filed by
the Puerto Rico Broadcaster's Association (PRBA) seeking regulatory fee
relief.\97\ We recognize the challenging circumstances described in the
PRBA petition. Due to the complexities of this proposal and time
constraints imposed by the annual regulatory fee process, additional
time is needed to further consider this petition. We intend to address
the PRBA petition in a separate proceeding outside of the regulatory
fee rulemaking process. We understand that PRBA is contending that the
costs associated with preparing and filing a waiver request would be
overly burdensome.\98\ We do not agree that PRBA's assertion, that
requesting a waiver is a burden, eliminates that option. Our waiver
process,\99\ is available to PRBA members and any aggrieved party
seeking a waiver of our rules.\100\
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\97\ FY 2015 NPRM, 30 FCC Rcd at 5360-61, paras. 15-18. One
commenter addressed the issues in the PRBA petition and suggests
that we adopt our second proposal and create a separate fee category
for Puerto Rico at a lower rate. ARSO Comments at 6-8.
\98\ PRBA Comments at 2.
\99\ 47 U.S.C. 159(d); 47 CFR 1.1166.
\100\ See the Commission's regulatory fee waiver fact sheet,
available at https://www.fcc.gov/document/fy-2014-regulatory-fees-waiver-fact-sheet.
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9. Effective Date of Elimination of the Vanity Call Sign and General
Mobile Radio Service Regulatory Fee
28. In the Commission's FY 2015 Fee Reform Report and Order,\101\
the Commission eliminated the regulatory fee component of two fee
categories: amateur radio Vanity Call Signs \102\ and General Mobile
Radio Service (GMRS).\103\ The elimination of regulatory fee categories
constitutes a ``permitted amendment'' as defined in section 9(b)(3) of
the Act. As required by section 9(b)(4)(B) of the Act, ``permitted
amendment'' letters dated June 4, 2015 were mailed to congressional
officials informing them of the elimination of these two fee categories
and adoption of the new DBS fee category. Consistent with section
9(b)(4)(B) of the Act, these amendments will take effect 90 days after
congressional notification of the permitted amendment letter, dated
June 4, 2015. Thus, effective September 3, 2015, the Vanity Call Sign
and GMRS regulatory fee categories will be eliminated and licensees
will not be required to pay additional regulatory fees for these
licenses.\104\ Regulatees are still responsible for the payment of all
application fees associated with these licenses.
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\101\ FY 2015 Fee Reform Report and Order, 30 FCC Rcd at 5361-
62, paras. 19-22.
\102\ Call signs assigned to newly licensed stations, i.e., a
sequential call sign, are assigned based on the licensee's mailing
address and class of operator license. 47 CFR 97.17(d). The licensee
can request a specific unassigned but assignable call sign, known as
a vanity call sign. 47 CFR 97.19. There is no fee for the sequential
call sign.
\103\ GMRS (formerly Class A of the Citizens Radio Service) is a
personal radio service available for the conduct of an individual's
personal and family communications. See 47 CFR 95.1.
\104\ The letter dated June 4, 2015 also includes the
establishment of a DBS regulatory fee which will also be effective
September 3, 2015.
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V. Procedural Matters
A. Payment of Regulatory Fees
1. Payments by Check Will Not Be Accepted for Payment of Annual
Regulatory Fees
29. Pursuant to an Office of Management and Budget (OMB)
directive,\105\ the Commission is moving towards a paperless
environment, extending to disbursement and collection of select federal
government payments and receipts.\106\ The initiative to reduce paper
and curtail check payments for regulatory fees is expected to produce
cost savings, reduce errors, and improve efficiencies across
government. Accordingly, the Commission will no longer accept checks
(including cashier's checks and money orders) and the accompanying
hardcopy forms (e.g., Forms 159, 159-B, 159-E, 159-W) for the payment
of regulatory fees. This new paperless procedure will require that all
payments be made by online ACH payment, online credit card, or wire
transfer. Any other form of payment (e.g., checks, cashier's checks, or
money orders) will be rejected. For payments by wire, a Form 159-E
should still be transmitted via fax so that the Commission can
associate the wire payment with the correct regulatory fee information.
This change will affect all payments of regulatory fees.\107\
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\105\ Office of Management and Budget (OMB) Memorandum M-10-06,
Open Government Directive, Dec. 8, 2009; see also https://www.whitehouse.gov/the-press-office/2011/06/13/executive-order-13576-delivering-efficient-effective-and-accountable-gov.
\106\ See U.S. Department of the Treasury, Open Government Plan
2.1, Sept. 2012.
\107\ Payors should note that this change will mean that to the
extent certain entities have to date paid both regulatory fees and
application fees at the same time via paper check, they will no
longer be able to do so as the regulatory fees payment via paper
check will no longer be accepted.
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2. Revised Credit Card Transaction Levels
30. 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.\108\
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 in Fact Sheets, available at https://www.fcc.gov/regfees.
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\108\ 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.
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3. Lock Box Bank
31. During the fee season for collecting FY 2015 regulatory fees,
regulatees can pay their fees by credit card through Pay.gov,\109\ ACH,
debit card,\110\ or by wire transfer. Additional payment instructions
are posted at https://transition.fcc.gov/fees/regfees.html.
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\109\ In accordance with U.S. Treasury Financial Manual
Announcement No. A-2014-04 (July 2014), the amount that may be
charged on a credit card for transactions with federal agencies has
been reduced to $24,999.99.
\110\ In accordance with U.S. Treasury Financial Manual
Announcement No. A-2012-02, the maximum dollar-value limit for debit
card transactions is eliminated. It should also be noted that only
Visa and MasterCard branded debit cards are accepted by Pay.gov.
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4. Receiving Bank for Wire Payments
32. The receiving bank for all wire payments is the Federal Reserve
Bank, New York, New York (TREAS NYC). When making a wire transfer,
regulatees must fax a copy of their Fee Filer generated Form 159-E to
the Federal Communications Commission at (202) 418-2843 at least one
hour before initiating the wire transfer (but on the
[[Page 55782]]
same business day) so as not to delay crediting their account.
Regulatees should discuss arrangements (including bank closing
schedules) with their bankers several days before they plan to make the
wire transfer to allow sufficient time for the transfer to be initiated
and completed before the deadline. Complete instructions for making
wire payments are posted at https://transition.fcc.gov/fees/wiretran.html.
5. De Minimis Regulatory Fees
33. Regulatees whose total FY 2015 annual regulatory fee liability,
including all categories of fees for which payment is due, is $500 or
less are exempt from payment of FY 2015 regulatory fees. The de minimis
threshold applies only to filers of annual regulatory fees (not
regulatory fees paid through multi-year filings), and it is not a
permanent exemption. Rather, each regulate will need to reevaluate
their total fee liability each fiscal year to determine whether they
meet the de minimis exemption.
6. Standard Fee Calculations and Payment Dates
34. 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. For
providers of Direct Broadcast Service (DBS) service, regulatory fees
should be paid based on a subscriber count on or about December 31,
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.\111\ For Responsible
Organizations (RespOrgs) that manage Toll Free Numbers (TFN),
regulatory fees should be paid on all working, assigned, and reserved
toll free numbers, including those toll free numbers that are in
transit status, or any other status as defined in section 52.103 of the
Commission's rules. The unit count should be based on toll free numbers
managed by RespOrgs on or about December 31, 2014.
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\111\ 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.
Wireless Services, Multi-year fees: The first eight
regulatory fee categories in our Schedule of Regulatory Fees 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 B) 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 and CARS licensees): Regulatory fees must be paid
for the number of basic cable television subscribers as of December 31,
2014.\112\ 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.
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\112\ Cable television system operators should compute their
number of basic subscribers as follows: Number of single family
dwellings + number of individual households in multiple dwelling
unit (apartments, condominiums, mobile home parks, etc.) paying at
the basic subscriber rate + bulk rate customers + courtesy and free
service. Note: Bulk-Rate Customers = Total annual bulk-rate charge
divided by basic annual subscription rate for individual households.
Operators may base their count on ``a typical day in the last full
week'' of December 2014, rather than on a count as of December 31,
2014.
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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 remain at 87.6 percent for submarine cable
and 12.4 percent for satellite/terrestrial facilities.
International Services: (Terrestrial and Satellite
Services): Regulatory fees for Terrestrial and Satellite 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 used 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. For these purposes, ``active
circuits'' 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.\113\ 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.\114\
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\113\ We encourage terrestrial and satellite service providers
to seek guidance from the International Bureau's Policy Division to
verify their IBC reporting processes to ensure that their
calculation methods comply with our rules.
\114\ We remind facilities-based common carriers to review their
reporting processes to ensure that they accurately calculate and
report IBCs. As we recently have done with submarine cable capacity
holders, we will review the processes for reporting IBCs in the near
future to ensure that all carriers are reporting IBCs in the same
manner, consistent with our rules.
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[[Page 55783]]
B. Commercial Mobile Radio Service (CMRS) Cellular and Mobile Services
Assessments
35. The Commission will compile data from the Numbering Resource
Utilization Forecast (NRUF) report that is based on ``assigned''
telephone number (subscriber) counts that have been adjusted for
porting to net Type 0 ports (``in'' and ``out'').\115\ This information
of telephone numbers (subscriber count) will be posted on the
Commission's electronic filing and payment system (Fee Filer) along
with the carrier's Operating Company Numbers (OCNs).
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\115\ See FY 2005 Report and Order, 20 FCC Rcd at 12264, paras.
38-44.
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36. A carrier wishing to revise its telephone number (subscriber)
count can do so by accessing Fee Filer and follow the prompts to revise
their telephone number counts. Any revisions to the telephone number
counts should be accompanied by an explanation or supporting
documentation.\116\ The Commission will then review the revised count
and supporting documentation and either approve or disapprove the
submission in Fee Filer. If the submission is disapproved, the
Commission will contact the provider to afford the provider an
opportunity to discuss its revised subscriber count and/or provide
additional supporting documentation. If we receive no response from the
provider, or we do not reverse our initial disapproval of the
provider's revised count submission, the fee payment must be based on
the number of subscribers listed initially in Fee Filer. Once the
timeframe for revision has passed, the telephone number counts are
final and are the basis upon which CMRS regulatory fees are to be paid.
Providers can view their final telephone counts online in Fee Filer. A
final CMRS assessment letter will not be mailed out.
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\116\ In the supporting documentation, the provider will need to
state a reason for the change, such as a purchase or sale of a
subsidiary, the date of the transaction, and any other pertinent
information that will help to justify a reason for the change.
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37. Because some carriers do not file the NRUF report, they may not
see their telephone number counts in Fee Filer. In these instances, the
carriers should compute their fee payment using the standard
methodology that is currently in place for CMRS Wireless services
(i.e., compute their telephone number counts as of December 31, 2014),
and submit their fee payment accordingly. Whether a carrier reviews its
telephone number counts in Fee Filer or not, the Commission reserves
the right to audit the number of telephone numbers for which regulatory
fees are paid. In the event that the Commission determines that the
number of telephone numbers that are paid is inaccurate, the Commission
will bill the carrier for the difference between what was paid and what
should have been paid.
C. Enforcement
38. To be considered timely, regulatory fee payments must be made
electronically by the payment due date for regulatory fees. Section
9(c) of the Act requires us to impose a late payment penalty of 25
percent of the unpaid amount to be assessed on the first day following
the deadline for filing these fees.\117\ Failure to pay regulatory fees
and/or any late penalty will subject regulatees to sanctions, including
those set forth in section 1.1910 of the Commission's rules,\118\ which
generally requires the Commission to withhold action on ``applications,
including on a petition for reconsideration or any application for
review of a fee determination, or requests for authorization by any
entity found to be delinquent in its debt to the Commission'' and in
the DCIA.\119\ We also assess administrative processing charges on
delinquent debts to recover additional costs incurred in processing and
handling the debt pursuant to the DCIA and section 1.1940(d) of the
Commission's rules.\120\ These administrative processing charges will
be assessed on any delinquent regulatory fee, in addition to the 25
percent late charge penalty. In the case of partial payments
(underpayments) of regulatory fees, the payor will be given credit for
the amount paid, but if it is later determined that the fee paid is
incorrect or not timely paid, then the 25 percent late charge penalty
(and other charges and/or sanctions, as appropriate) will be assessed
on the portion that is not paid in a timely manner.
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\117\ 47 U.S.C. 159(c).
\118\ See 47 CFR 1.1910.
\119\ Delinquent debt owed to the Commission triggers the ``red
light rule,'' which places a hold on the processing of pending
applications, fee offsets, and pending disbursement payments. 47 CFR
1.1910, 1.1911, 1.1912. In 2004, the Commission adopted rules
implementing the requirements of the DCIA. See Amendment of Parts 0
and 1 of the Commission's Rules, MD Docket No. 02-339, Report and
Order, 19 FCC Rcd 6540 (2004); 47 CFR part 1, subpart O, Collection
of Claims Owed the United States.
\120\ 47 CFR 1.1940(d).
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39. Pursuant to the ``red light rule,'' we will withhold action on
any applications or other requests for benefits filed by anyone who is
delinquent in any non-tax debts owed to the Commission (including
regulatory fees) and will ultimately dismiss those applications or
other requests if payment of the delinquent debt or other satisfactory
arrangement for payment is not made.\121\ Failure to pay regulatory
fees can also result in the initiation of a proceeding to revoke any
and all authorizations held by the entity responsible for paying the
delinquent fee(s).\122\ Pursuant to a pilot program, we have initiated
procedures to transfer debt to the Centralized Receivables Service at
the U.S. Treasury, as described below.
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\121\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
\122\ 47 U.S.C. 159.
---------------------------------------------------------------------------
D. Transfers of Unpaid Debt to Centralized Receivables Service, U.S.
Treasury
40. Under section 9 of the Act, Commission's rules, and federal
debt collection laws, a licensee's regulatory fee is due on the first
day of the fiscal year and payable at a date established in the
Commission's annual regulatory fee Report and Order. Beginning on or
after October 1, 2015, under revised procedures, the Commission will
begin transferring unpaid regulatory fee receivables directly to the
CRS at the U.S. Treasury instead of working to collect the debt and
then transferring the remaining unpaid debts to Treasury. The
Commission can transfer delinquent debt to Treasury for further
collection action within 120 days after the date of delinquency.\123\
We anticipate that the transfer of FY 2015 debts to Treasury will occur
much sooner than our current process. Regulatees, however, will not
likely see any substantial change in the current procedures of how past
due debts are to be paid, except that the debts will be handled by CRS
(U.S. Treasury) rather than by the Commission.
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\123\ See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR 1.1917.
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E. Effective Date
41. Providing a 30 day period after Federal Register publication
before this Report and Order becomes effective as required by 5 U.S.C.
553(d) will not allow sufficient time for the Commission to collect the
FY 2015 fees before FY 2015 ends on September 30, 2015. For this
reason, pursuant to 5 U.S.C. 553(d)(3), the Commission finds there is
good cause to waive the requirements of section 553(d), and this Report
and Order and Further Notice of Proposed Rulemaking will become
effective upon publication in the
[[Page 55784]]
Federal Register. Because payments of the regulatory fees will not
actually be due until the middle of September, persons affected by this
Report and Order will still have a reasonable period in which to make
their payments and thereby comply with the rules established herein.
VI. Additional Tables
Table A
------------------------------------------------------------------------
Commenter Abbreviation
------------------------------------------------------------------------
List of Commenters--Initial Comments
------------------------------------------------------------------------
ARSO Radio Corporation........ ARSO.
Aviation Spectrum Resources, Aviation Joint Commenters.
Inc., Airlines for America,
Aircraft Owners and Pilots
Association, Delta Airlines,
Harris Corporation, Rockwell-
Collins Information
Management Services,
Southwest Airlines Co., The
Boeing Company, and SITA
OnAir.
DIRECTV, LLC.................. DIRECTV.
DISH Network, L.L.C........... DISH.
EchoStar Satellite Operating EchoStar.
Corporation and Hughes
Network Systems, LLC.
Intelsat Licensee, LLC........ Intelsat.
ITTA--The Voice of Mid-Size ITTA.
Communications Companies.
National Association of NAB.
Broadcasters.
National Cable & NCTA & ACA.
Telecommunications
Association and the American
Cable Association.
North American Submarine Cable NASCA.
Association.
Puerto Rico Broadcasters PRBA.
Association, International
Broadcasting Corporation,
Eastern Television
Corporation, America-CV
Stations Group, Inc., R & F
Broadcasting, Inc..
Satellite Industry Association SIA.
Submarine Cable Coalition..... Coalition.
------------------------------------------------------------------------
List of Commenters--Reply Comments
------------------------------------------------------------------------
CTIA--The Wireless CTIA.
Association[supreg].
DIRECTV, LLC.................. DIRECTV.
DISH Network, L.L.C........... DISH.
EchoStar Satellite Operating EchoStar.
Corporation and Hughes
Network Systems, LLC.
National Cable & NCTA & ACA.
Telecommunications
Association and the American
Cable Association.
North American Submarine Cable NASCA.
Association.
SES Americom, Inc., Inmarsat, Satellite Parties.
Inc., Telesat Canada.
Submarine Cable Coalition..... Coalition.
------------------------------------------------------------------------
Table B--Calculation of FY 2015 Revenue Requirements and Pro-Rata Fees
[The first seven regulatory fees listed below are collected by the Commission in advance to cover the term of the license and are submitted at the time
the application is filed.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2014 Pro-rated FY
Fee category FY 2015 payment units Years revenue 2015 revenue Computed FY 2015 Rounded FY 2015 Expected FY
estimate requirement regulatory fee regulatory fee 2015 revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)................ 1,820 10 595,000 589,899 32 30 546,000
PLMRS (Shared use)................... 31,000 10 3,000,000 2,822,788 9 10 3,100,000
Microwave............................ 12,600 10 2,550,000 2,780,552 22 20 2,520,000
Marine (Ship)........................ 6,300 10 780,000 927,085 15 15 945,000
Aviation (Aircraft).................. 4,200 10 420,000 420,954 10 10 420,000
Marine (Coast)....................... 490 10 165,000 168,241 34 35 171,500
Aviation (Ground).................... 900 10 153,000 168,241 19 20 180,000
AM Class A \4\....................... 65 1 274,700 280,935 4,322 4,325 281,125
AM Class B \4\....................... 1,505 1 3,410,900 3,483,012 2,314 2,325 3,499,125
AM Class C \4\....................... 889 1 1,212,750 1,245,750 1,401 1,400 1,244,600
AM Class D \4\....................... 1,492 1 4,033,300 4,120,475 2,762 2,750 4,103,000
FM Classes A, B1 & C3 \4\............ 3,132 1 8,466,575 8,641,905 2,759 2,700 8,613,000
FM Classes B, C, C0, C1 & C2 \4\..... 3,143 1 10,437,175 10,595,484 3,371 3,375 10,607,625
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 1 196,850 199,675 1,572 1,575 200,025
Digital TV Markets 1-10.............. 134 1 6,161,700 6,274,824 46,827 46,825 6,274,550
Digital TV Markets 11-25............. 137 1 5,809,800 5,918,646 43,202 43,200 5,918,400
Digital TV Markets 26-50............. 181 1 4,909,450 5,001,220 27,631 27,625 5,00,125
Digital TV Markets 51-100............ 283 1 4,524,000 4,608,775 16,285 16,275 4,605,825
Digital TV Remaining Markets......... 379 1 1,805,000 1,834,853 4,841 4,850 1,838,150
Digital TV Construction Permits \1\.. 2 1 23,750 9,700 4,850 4,850 9,700
LPTV/Translators/Boosters/Class A TV. 3,640 1 1,570,300 1,592,900 438 440 1,601,600
CARS Stations........................ 300 1 196,625 197,876 660 660 198,000
Cable TV Systems, including IPTV..... 64,500,000 1 64,746,000 61,618,439 .955532 .96 61,920,000
Direct Broadcast Satellite (DBS)..... 34,000,000 1 .............. 4,115,811 .1211 .12 4,080,000
Interstate Telecommunication Service $38,800,000,000 1 131,369,000 128,607,682 0.0033146 0.00331 128,428,000
Providers...........................
Toll Free Numbers.................... 36,500,000 1 .............. 4,419,018 0.12069 0.12 4,380,000
CMRS Mobile Services (Cellular/Public 354,000,000 1 60,300,000 60,506,881 0.1737 0.17 60,180,000
Mobile).............................
CMRS Messag. Services................ 2,600,000 1 232,000 208,000 0.0800 0.080 208,000
[[Page 55785]]
BRS \2\.............................. 890 1 643,500 564,064 634 635 565,150
LMDS................................. 375 1 135,850 237,667 634 635 238,125
Per 64 kbps Int'l Bearer Circuits.... 21,900,000 1 941,640 658,593 .0301 .03 657,000
Terrestrial (Common) & Satellite ..................... ...... .............. .............. ................. ............... ..............
(Common & Non-Common) \5\
Submarine Cable Providers (see chart 40.563 1 6,586,731 4,652,639 114,702 114,700 4,652,576
in Appendix C) 3 5..................
Earth Stations \5\................... 3,300 1 1,003,000 1,022,890 310 310 1,023,000
Space Stations (Geostationary) \5\... 96 1 11,505,600 11,437,435 119,140 119,150 11,438,400
Space Stations (Non-Geostationary) 6 1 797,100 792,693 132,116 132,125 792,750
\5\.................................
------------------------------------------------------------------------------------------------------------------
****** Total Estimated Revenue to ..................... ...... 339,847,246 341,879,214 ................. ............... 340,593,961
be Collected....................
****** Total Revenue Requirement. ..................... ...... 339,844,000 339,844,000 ................. ............... 339,844,000
------------------------------------------------------------------------------------------------------------------
Difference................... ..................... ...... 3,246 2,035,214 ................. ............... 749,961
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table B
\1\ The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set the regulatory
fee to an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction Permit revenues
were also 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 FY 2008 Further Notice, 24 FCC Rcd 6388 and the Submarine Cable Order, 24 FCC Rcd 4208.
\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 7.5 per cent proportionally
between the submarine cable and bearer circuit fee categories. This allocation reduction of 7.5 per cent resulted in an increase in the allocation for
the satellite and earth station fee categories. In addition, four (4) International Bureau FTEs were changed from ``direct'' to ``indirect'', thereby
reducing the International Bureau's overall FTE allocation percentage.
Table C--FY 2015 Schedule of Regulatory Fees
[The first eight regulatory fees listed 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 category fee (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90). 30
Microwave (per license) (47 CFR part 101)............ 20
Marine (Ship) (per station) (47 CFR part 80)......... 15
Marine (Coast) (per license) (47 CFR part 80)........ 35
Rural Radio (47 CFR part 22) (previously listed under 10
the Land Mobile category)...........................
PLMRS (Shared Use) (per license) (47 CFR part 90).... 10
Aviation (Aircraft) (per station) (47 CFR part 87)... 10
Aviation (Ground) (per license) (47 CFR part 87)..... 20
CMRS Mobile/Cellular Services (per unit) (47 CFR .17
parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90)......................................
Broadband Radio Service (formerly MMDS/MDS) (per 635
license) (47 CFR part 27)...........................
Local Multipoint Distribution Service (per call sign) 635
(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..................................... 46,825
Markets 11-25.................................... 43,200
Markets 26-50.................................... 27,625
Markets 51-100................................... 16,275
Remaining Markets................................ 4,850
Construction Permits............................. 4,850
Satellite Television Stations (All Markets).......... 1,575
Low Power TV, Class A TV, TV/FM Translators & 440
Boosters (47 CFR part 74)...........................
CARS (47 CFR part 78)................................ 660
Cable Television Systems (per subscriber) (47 CFR .96
part 76), Including IPTV............................
Direct Broadcast Service (DBS) (per subscriber) (as .12
defined by section 602(13) of the Act)..............
Interstate Telecommunication Service Providers (per .00331
revenue dollar).....................................
Toll Free (per toll free subscriber) (47 C.F.R. .12
section 52.101 (f) of the rules)....................
Earth Stations (47 CFR part 25)...................... 310
Space Stations (per operational station in 119,150
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100)................................................
[[Page 55786]]
Space Stations (per operational system in non- 132,125
geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits--Terrestrial/Satellites .03
(per 64KB circuit)..................................
Submarine Cable Landing Licenses Fee (per cable See Table Below
system).............................................
------------------------------------------------------------------------
FY 2015 Schedule of Regulatory Fees:
[Continued]
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2015 RADIO STATION REGULATORY FEES
---------------------------------------------------------------------------------------------------------------------------------------------------------
FM Classes A, FM Classes B,
Population served AM Class A AM Class B AM Class C AM Class D B1 & C3 C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................ $775 $645 $590 $670 $750 $925
25,001-75,000........................................... 1,550 1,300 900 1,000 1,500 1,625
75,001-150,000.......................................... 2,325 1,625 1,200 1,675 2,050 3,000
150,001-500,000......................................... 3,475 2,750 1,800 2,025 3,175 3,925
500,001-1,200,000....................................... 5,025 4,225 3,000 3,375 5,050 5,775
1,200,001-3,000,00...................................... 7,750 6,500 4,500 5,400 8,250 9,250
>3,000,000.............................................. 9,300 7,800 5,700 6,750 10,500 12,025
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2015 Schedule of Regulatory Fees
[International Bearer Circuits--Submarine Cable.]
------------------------------------------------------------------------
Submarine Cable Systems (capacity as of December 31,
2014) Fee amount
------------------------------------------------------------------------
<2.5 Gbps............................................... $7,175
2.5 Gbps or greater, but less than 5 Gbps............... 14,350
5 Gbps or greater, but less than 10 Gbps................ 28,675
10 Gbps or greater, but less than 20 Gbps............... 57,350
20 Gbps or greater...................................... 114,700
------------------------------------------------------------------------
Table D--Sources of Payment Unit Estimates for FY 2015
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 report.
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.
------------------------------------------------------------------------
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.
[[Page 55787]]
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
2014 payment units.
LMDS.............................. Based on WTB reports and actual FY
2014 payment units.
Cable Television Relay Service Based on data from Media Bureau's
(``CARS'') Stations. COALS database and actual FY 2013
payment units.
Cable Television System Based on publicly available data
Subscribers, Including IPTV sources for estimated subscriber
Subscribers. counts and actual FY 2014 payment
units.
Interstate Telecommunication Based on FCC Form 499-Q data for the
Service Providers. four quarters of calendar year
2014, the Wireline Competition
Bureau projected the amount of
calendar year 2014 revenue that
will be reported on 2015 FCC Form
499-A worksheets in April, 2015.
Earth Stations.................... Based on International Bureau
(``IB'') licensing data and actual
FY 2014 payment units.
Space Stations (GSOs & NGSOs)..... Based on IB data reports and actual
FY 2014 payment units.
International Bearer Circuits..... Based on IB reports and submissions
by licensees, adjusted as
necessary.
Submarine Cable Licenses.......... Based on IB license information.
------------------------------------------------------------------------
Table E--Factors, Measurements, and Calculations That Determines
Station Signal Contours and Associated Population Coverages
AM Stations
For stations with nondirectional daytime antennas, the theoretical
radiation was used at all azimuths. For stations with directional
daytime antennas, specific information on each day tower, including
field ratio, phase, spacing, and orientation was retrieved, as well as
the theoretical pattern root-mean-square of the radiation in all
directions in the horizontal plane (RMS) figure (milliVolt per meter
(mVm) @1 km) for the antenna system. The standard, or augmented
standard if pertinent, horizontal plane radiation pattern was
calculated using techniques and methods specified in sections 73.150
and 73.152 of the Commission's rules. Radiation values were calculated
for each of 360 radials around the transmitter site. Next, estimated
soil conductivity data was retrieved from a database representing the
information in FCC Figure R3. Using the calculated horizontal radiation
values, and the retrieved soil conductivity data, the distance to the
principal community (5 mVm) contour was predicted for each of the 360
radials. The resulting distance to principal community contours were
used to form a geographical polygon. Population counting was
accomplished by determining which 2010 block centroids were contained
in the polygon. (A block centroid is the center point of a small area
containing population as computed by the U.S. Census Bureau.) The sum
of the population figures for all enclosed blocks represents the total
population for the predicted principal community coverage area.
FM Stations
The greater of the horizontal or vertical effective radiated power
(ERP) (kW) and respective height above average terrain (HAAT) (m)
combination was used. Where the antenna height above mean sea level
(HAMSL) was available, it was used in lieu of the average HAAT figure
to calculate specific HAAT figures for each of 360 radials under study.
Any available directional pattern information was applied as well, to
produce a radial-specific ERP figure. The HAAT and ERP figures were
used in conjunction with the Field Strength (50-50) propagation curves
specified in 47 CFR 73.313 of the Commission's rules to predict the
distance to the principal community (70 dBu (decibel above 1 microVolt
per meter) or 3.17 mVm) contour for each of the 360 radials. The
resulting distance to principal community contours were used to form a
geographical polygon. Population counting was accomplished by
determining which 2010 block centroids were contained in the polygon.
The sum of the population figures for all enclosed blocks represents
the total population for the predicted principal community coverage
area.
Table F--FY 2014 Schedule of Regulatory Fees
[The first eleven regulatory fees listed 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 category fee (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90). 35
Microwave (per license) (47 CFR part 101)............ 15
218-219 MHz (Formerly Interactive Video Data Service) 80
(per license) (47 CFR part 95)......................
Marine (Ship) (per station) (47 CFR part 80)......... 15
Marine (Coast) (per license) (47 CFR part 80)........ 55
General Mobile Radio Service (per license) (47 CFR 5
part 95)............................................
Rural Radio (47 CFR part 22) (previously listed under 10
the Land Mobile category)...........................
PLMRS (Shared Use) (per license) (47 CFR part 90).... 10
Aviation (Aircraft) (per station) (47 CFR part 87)... 10
Aviation (Ground) (per license) (47 CFR part 87)..... 30
Amateur Vanity Call Signs (per call sign) (47 CFR 2.14
part 97)............................................
CMRS Mobile/Cellular Services (per unit) (47 CFR .18
parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90)......................................
Broadband Radio Service (formerly MMDS/MDS) (per 715
license) (47 CFR part 27)...........................
Local Multipoint Distribution Service (per call sign) 715
(47 CFR, part 101)..................................
AM Radio Construction Permits........................ 590
FM Radio Construction Permits........................ 750
[[Page 55788]]
Digital TV (47 CFR part 73) VHF and UHF Commercial:
Markets 1-10..................................... 44,650
Markets 11-25.................................... 42,100
Markets 26-50.................................... 26,975
Markets 51-100................................... 15,600
Remaining Markets................................ 4,750
Construction Permits............................. 4,750
Satellite Television Stations (All Markets).......... 1,550
Construction Permits--Satellite Television Stations.. 1,300
Low Power TV, Class A TV, TV/FM Translators & 410
Boosters (47 CFR part 74)...........................
Broadcast Auxiliaries (47 CFR part 74)............... 10
CARS (47 CFR part 78)................................ 605
Cable Television Systems (per subscriber) (47 CFR .99
part 76), Including IPTV............................
Interstate Telecommunication Service Providers (per .00343
revenue dollar).....................................
Earth Stations (47 CFR part 25)...................... 295
Space Stations (per operational station in 122,400
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100)................................................
Space Stations (per operational system in non- 132,850
geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits--Terrestrial/Satellites .21
(per 64KB circuit)..................................
International Bearer Circuits--Submarine Cable....... See Table Below
------------------------------------------------------------------------
FY 2014 Schedule of Regulatory Fees: Maintain Allocation
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2014 Radio Station Regulatory Fees
---------------------------------------------------------------------------------------------------------------------------------------------------------
FM Classes A, FM Classes B,
Population served AM Class A AM Class B AM Class C AM Class D B1 & C3 C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................ $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
1,200,001-3,000,000..................................... 7,750 6,500 4,500 5,400 8,250 9,250
>3,000,000.............................................. 9,300 7,800 5,700 6,750 10,500 12,025
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2014 Schedule of Regulatory Fees
[International Bearer Circuits--Submarine Cable]
------------------------------------------------------------------------
Submarine cable systems (capacity as of December 31,
2013) Fee amount
------------------------------------------------------------------------
<2.5 Gbps............................................... $10,250
2.5 Gbps or greater, but less than 5 Gbps............... 20,500
5 Gbps or greater, but less than 10 Gbps................ 40,975
10 Gbps or greater, but less than 20 Gbps............... 81,950
20 Gbps or greater...................................... 163,900
------------------------------------------------------------------------
VII. Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\124\ an Initial Regulatory Flexibility Analysis (IRFA)
was included in the Notice of Proposed Rulemaking.\125\ The Commission
sought written public comment on these proposals including comment on
the IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms to
the IRFA.\126\
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\124\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended
by the Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
\125\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2015, Notice of Proposed Rulemaking, Report and Order, and
Order, MD Docket No. 15-121, 30 FCC Rcd 5354 (2015) (FY 2015 NPRM).
\126\ 5 U.S.C. 604.
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A. Need for, and Objectives of, the Report and Order
2. In this Report and Order, we conclude the Assessment and
Collection of Regulatory Fees for Fiscal Year (FY) 2015 proceeding to
collect $339,844,000 in regulatory fees for FY 2015, pursuant to
section 9 of the Communications Act of 1934, as amended.\127\ These
regulatory fees will be due in September 2015. Under section 9 of the
[[Page 55789]]
Communications Act, regulatory fees are mandated by Congress and
collected to recover the regulatory costs associated with the
Commission's enforcement, policy and rulemaking, user information, and
international activities in an amount that can be reasonably expected
to equal the amount of the Commission's annual appropriation.\128\
---------------------------------------------------------------------------
\127\ 47 U.S.C. 159.
\128\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------
3. This FY 2015 Report and Order adopts a regulatory fee schedule
that includes the following noteworthy changes from prior years: (1) A
reduction in regulatory fees for the submarine cable/terrestrial and
satellite bearer circuit category relative to other fee categories in
the International Bureau; (2) the first fee rate for Direct Broadcast
Satellite (DBS) as a subcategory of the cable television and Internet
Protocol Television (IPTV) regulatory fee category; (3) the first fee
rate for toll free numbers; and (4) the elimination of the regulatory
fee component of two fee categories: Amateur Radio Vanity Call Signs
and General Mobile Radio Service (GMRS). In addition, in calculating
the FY 2015 fee schedule, the Commission also reallocated four
International Bureau full time employees (FTEs) as indirect.
4. With respect to the submarine cable/terrestrial and satellite
bearer circuit fee category, after additional review, the Commission
concluded that the fee assessed on the submarine cable/terrestrial and
satellite bearer circuit fee category was excessive relative to the
Commission's oversight and regulation of this industry. As a result,
the Commission reduced the percentage of total fees paid by this fee
category by 7.5 percent. With respect to the DBS fee category, the
Commission instituted the DBS fee after realizing that Media Bureau
resources were being used to address DBS and MVPD issues, but these
costs were not being recovered from DBS providers. Therefore, the DBS
fee is instituted to recover the cost of Media Bureau resources that is
spent on MVPD and DBS issues. Similarly, a toll free number regulatory
fee is instituted to recover the cost of resources expended by the
Wireline Bureau on issues relating to toll free numbers. With respect
to Amateur Radio Vanity Call Signs and General Mobile Radio Service
(GMRS), the Commission concluded that the administrative costs of
processing, reviewing, and enforcing the thousands of Vanity Call Sign
and GMRS licenses far exceeds the $21.40 and $25 per license regulatory
fee rate that is collected, respectively. Many of the Amateur Vanity
Call Signs and GMRS licensees are small businesses and/or individuals.
Finally, in calculating the FY 2015 fee schedule, the Commission
reallocated four International Bureau full time employees (FTEs) as
indirect to reflect work performed by International Bureau staff on
non-U.S.-licensed space stations, who are not required to pay
regulatory fees.
B. Summary of the Significant Issues Raised by the Public Comments in
Response to the IRFA
5. None.
C. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply
6. The RFA directs agencies to provide a description of, and where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules and policies, if adopted.\129\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \130\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\131\ 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.\132\ Nationwide, there are a total of
approximately 27.9 million small businesses, according to the SBA.\133\
---------------------------------------------------------------------------
\129\ 5 U.S.C. 603(b)(3).
\130\ 5 U.S.C. 601(6).
\131\ 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.''
\132\ 15 U.S.C. 632.
\133\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' https://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf.
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1. 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.'' \134\ 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.\135\ Census data for
2007 shows that there were 3,188 firms that operated that year. Of this
total, 3,144 operated with less than 1,000 employees.\136\ Thus, under
this size standard, the majority of firms in this industry can be
considered small.
---------------------------------------------------------------------------
\134\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\135\ See 13 CFR 120.201, NAICS Code 517110.
\136\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------
2. 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 Wired Telecommunications Carriers as defined in
paragraph 6 of this FRFA. Under the applicable SBA size standard, such
a business is small if it has 1,500 or fewer employees.\137\ According
to Commission data, 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.\138\ The Commission therefore estimates that most
providers of local exchange carrier service are small entities that may
be affected by the rules adopted.
---------------------------------------------------------------------------
\137\ 13 CFR 121.201, NAICS code 517110.
\138\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------
3. 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 FRFA.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\139\ According to Commission data, 3,188 firms
operated in that year. Of this total, 3,144 operated
[[Page 55790]]
with fewer than 1,000 employees.\140\ Consequently, the Commission
estimates that most providers of incumbent local exchange service are
small businesses that may be affected by the rules and policies
adopted. Three hundred and seven (307) Incumbent Local Exchange
Carriers reported that they were incumbent local exchange service
providers.\141\ Of this total, an estimated 1,006 have 1,500 or fewer
employees.\142\
---------------------------------------------------------------------------
\139\ 13 CFR 121.201, NAICS code 517110.
\140\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\141\ See Trends in Telephone Service, Federal Communications
Commission, Wireline Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (Sept. 2010) (Trends in Telephone
Service).
\142\ Id.
---------------------------------------------------------------------------
4. 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 FRFA.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\143\ U.S. Census data for 2007 indicate that 3,188
firms operated during that year. Of that number, 3,144 operated with
fewer than 1,000 employees.\144\ 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.\145\ Of these 1,442
carriers, an estimated 1,256 have 1,500 or fewer employees.\146\ 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.\147\ Also, 72 carriers have reported that they are Other
Local Service Providers.\148\ Of this total, 70 have 1,500 or fewer
employees.\149\ Consequently, based on internally researched FCC data,
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 the rules adopted.
---------------------------------------------------------------------------
\143\ 13 CFR 121.201, NAICS code 517110.
\144\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\145\ See Trends in Telephone Service, at Table 5.3.
\146\ Id.
\147\ Id.
\148\ Id.
\149\ Id.
---------------------------------------------------------------------------
5. 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 FRFA. The applicable size standard under SBA rules
is that such a business is small if it has 1,500 or fewer
employees.\150\ U.S. Census data for 2007 indicates that 3,188 firms
operated during that year. Of that number, 3,144 operated with fewer
than 1,000 employees.\151\ According to internally developed Commission
data, 359 companies reported that their primary telecommunications
service activity was the provision of interexchange services.\152\ Of
this total, an estimated 317 have 1,500 or fewer employees.\153\
Consequently, the Commission estimates that the majority of
interexchange service providers are small entities that may be affected
by the rules adopted.
---------------------------------------------------------------------------
\150\ 13 CFR 121.201, NAICS code 517110.
\151\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\152\ See Trends in Telephone Service, at Table 5.3.
\153\ Id.
---------------------------------------------------------------------------
6. 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.\154\ Under
the applicable SBA size standard, such a business is small if it has
1,500 or fewer employees.\155\ 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.\156\ 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.\157\ All
193 carriers have 1,500 or fewer employees.\158\ Consequently, the
Commission estimates that the majority of prepaid calling card
providers are small entities that may be affected by the rules adopted.
---------------------------------------------------------------------------
\154\ https://www.census.gov/cgi-bin/ssd/naics/naicsrch.
\155\ 13 CFR 121.201, NAICS code 517911.
\156\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\157\ See Trends in Telephone Service, at Table 5.3.
\158\ Id.
---------------------------------------------------------------------------
7. 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.\159\ 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.\160\ 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.\161\ Of this total, an estimated 211 have 1,500 or
fewer employees.\162\ Consequently, the Commission estimates that the
majority of local resellers are small entities that may be affected by
the rules adopted.
---------------------------------------------------------------------------
\159\ 13 CFR 121.201, NAICS code 517911.
\160\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\161\ See Trends in Telephone Service, at Table 5.3.
\162\ Id.
---------------------------------------------------------------------------
8. 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.\163\ 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.\164\ 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
[[Page 55791]]
engaged in the provision of toll resale services.\165\ Of this total,
an estimated 857 have 1,500 or fewer employees.\166\ Consequently, the
Commission estimates that the majority of toll resellers are small
entities that may be affected by the rules adopted.
---------------------------------------------------------------------------
\163\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\164\ Id.
\165\ Trends in Telephone Service, at Table 5.3.
\166\ Id.
---------------------------------------------------------------------------
9. Other Toll Carriers. Neither the Commission nor the SBA has
developed a definition 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
FRFA. Under the applicable SBA size standard, such a business is small
if it has 1,500 or fewer employees.\167\ 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.\168\ Thus, under this
category and the associated small business size standard, the majority
of Other Toll Carriers can be considered small. According to internally
developed Commission data, 284 companies reported that their primary
telecommunications service activity was the provision of other toll
carriage.\169\ Of these, an estimated 279 have 1,500 or fewer
employees.\170\ Consequently, the Commission estimates that most Other
Toll Carriers are small entities that may be affected by the rules and
policies adopted.
---------------------------------------------------------------------------
\167\ 13 CFR 121.201, NAICS code 517110.
\168\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\169\ Trends in Telephone Service, at Table 5.3.
\170\ Id.
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10. 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.\171\ 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.\172\ Of this total, an estimated 261 have 1,500 or
fewer employees.\173\ 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.
---------------------------------------------------------------------------
\171\ NAICS Code 517210. See https://www.census.gov/cgi-bin/ssd/naics/naiscsrch.
\172\ Trends in Telephone Service, at Table 5.3
\173\ Id.
---------------------------------------------------------------------------
11. Cable Television and Other Subscription Programming.\174\ 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 andor providing access to transmission facilities and
infrastructure that they own andor lease for the transmission of voice,
data, text, sound, and video using wired telecommunications networks.
Transmission facilities may be based on a single technology or a
combination of technologies.'' \175\ The SBA has developed a small
business size standard for this category, which is: All such firms
having 1,500 or fewer employees.\176\ Census data for 2007 shows that
there were 3,188 firms that operated that year. Of this total, 3,144
had fewer than 1,000 employees.\177\ 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.
---------------------------------------------------------------------------
\174\ 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, was 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 the FY 2015 NPRM. 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. 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.
\175\ 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.
\176\ 13 CFR 121.201, NAICS code 517110.
\177\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US-51SSSZ5&prodType=Table.
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12. 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.\178\ Industry data
indicate that there are currently 4,600 active cable systems in the
United States.\179\ Of this total, all but ten cable operators
nationwide are small under the 400,000-subscriber size standard.\180\
In addition, under the Commission's rate regulation rules, a ``small
system'' is a cable system serving 15,000 or fewer subscribers.\181\
Current Commission records show 4,600 cable systems nationwide.\182\ Of
this total, 3,900 cable systems have less than 15,000 subscribers, and
700 systems have 15,000 or more subscribers, based on the same
records.\183\ Thus, under this standard as well, we estimate that most
cable systems are small entities.
---------------------------------------------------------------------------
\178\ 47 CFR 76.901(e).
\179\ August 15, 2015 Report from the Media Bureau based on data
contained in the Commission's Cable Operations And Licensing System
(COALS). See www/fcc.gov/coals.
\180\ See SNL KAGAN at Https://snl.cominteractiveX_top_cable_MSOs_aspx?period2015Q1&sortcol=subscribersbasic&sortorder=desc.
\181\ 47 CFR 76.901(c)
\182\ See footnote 2, supra.
\183\ August 5, 2015 report from the Media Bureau based on its
research in COALS. See www.fcc.gov/coals.
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13. Cable System Operators (Telecom Act Standard). The
Communications Act of 1934, as amended, also contains a size standard
for small cable system operators, which is ``a cable operator that,
directly or through an affiliate, serves in the aggregate fewer than 1
percent of all subscribers in the United States and is not affiliated
with any entity or entities whose gross annual
[[Page 55792]]
revenues in the aggregate exceed $250,000,000.'' \184\ There are
approximately 52,403,705 cable video subscribers in the United States
today.\185\ Accordingly, an operator serving fewer than 524,037
subscribers shall be deemed a small operator if its annual revenues,
when combined with the total annual revenues of all its affiliates, do
not exceed $250 million in the aggregate.\186\ Based on available data,
we find that all but nine incumbent cable operators are small entities
under this size standard.\187\ We note that the Commission neither
requests nor collects information on whether cable system operators are
affiliated with entities whose gross annual revenues exceed $250
million.\188\ Although it seems certain that some of these cable system
operators are affiliated with entities whose gross annual revenues
exceed $250,000,000, we are unable at this time to estimate with
greater precision the number of cable system operators that would
qualify as small cable operators under the definition in the
Communications Act.
---------------------------------------------------------------------------
\184\ 47 CFR 901 (f) and notes ff. 1, 2, and 3.
\185\ See SNL KAGAN at htpps://www.snl.com/interactivex/MultichannelIndustryBenchmarks.aspx.
\186\ 47.901(f) and notes ff. 1, 2, and 3.
\187\ See SNL KAGAN at www.snl.com/Interactivex/TopCable
MSOs.aspx
\188\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's
finding that the operator does not qualify as a small cable operator
pursuant to 76.901(f) of the Commission's rules. See 47 CFR
76.901(f).
---------------------------------------------------------------------------
14. 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.\189\ 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.\190\ 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.\191\ Thus, a majority of ``All Other
Telecommunications'' firms potentially affected by the rules adopted
can be considered small.
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\189\ https://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
\190\ 13 CFR 121.201; NAICS Code 517919.
\191\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
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D. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
15. This Report and Order does not adopt any new reporting,
recordkeeping, or other compliance requirements.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
16. 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.\192\
---------------------------------------------------------------------------
\192\ 5 U.S.C. 603(c)(1) through (c)(4).
---------------------------------------------------------------------------
17. This Report and Order does not adopt any new reporting
requirements. Therefore no adverse economic impact on small entities
will be sustained based on reporting requirements. There will be a
regulatory fee instituted on DBS providers due to the adoption of a new
fee category, but we anticipate that the two primary DBS companies
required to pay these fees are not small entities. Similarly, a new
regulatory fee for Responsible Organizations (Resp. Org) has also been
instituted in FY 2015 for the toll free number fee category that was
previously adopted--the fee rate adopted is 12 cents per year. This is
not a new reporting requirement, and should not have any adverse
economic impact on small Resp. Org. entities because they are able to
recover these assessed fees from their customers.
18. In keeping with the requirements of the Regulatory Flexibility
Act, we have considered certain alternative means of mitigating the
effects of fee increases to a particular industry segment. For example,
beginning in FY 2015 the Commission has increased the de minimis
threshold from under $10 to $500 (the total of all regulatory fees),
which will impact many small entities that pay regulatory fees for
ITSP, paging, cellular, cable, and Low Power Television/FM Translators.
Historically, many of these small entities have been late in making
their fee payments to the Commission by the due date. This increase in
the de minimis threshold to $500 will relieve regulatees both
financially and administratively. Finally, regulatees may also seek
waivers or other relief on the basis of financial hardship. See 47 CFR
1.1166.
F. Federal Rules That May Duplicate, Overlap, or Conflict
19. None.
VIII. Ordering Clauses
20. 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 and
Further Notice of Proposed Rulemaking is hereby adopted.
21. It is further ordered that, as provided in paragraph 41, this
Report and Order and Further Notice of Proposed Rulemaking shall be
effective September 17, 2015.
22. It is further ordered that the Commission's Consumer &
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Report and Order, including the Final Regulatory
Flexibility Analysis, to the Chief Counsel for Advocacy of the U.S.
Small Business Administration.
Federal Communications Commission.
Marlene H. Dortch.
Secretary.
List of Subjects in 47 CFR Part 1
Administrative practice and procedure. Lawyers, Metric system,
Penalties, Reporting and recordkeeping requirements,
Telecommunications.
Rule Changes
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR, part 1 as follows:
PART 1--PRACTICE AND PROCEDURE
0
1. The authority citation for part 1 continues to read as follows:
Authority: 15 U.S.C. 79, et seq.; 47 U.S.C. 151, 154(i),
154(j), 155, 157, 160, 201, 225, 227, 303, 309, 332, 1403, 1404,
1451, 1452, and 1455.
0
2. Section 1.1152 is revised to read as follows:
[[Page 55793]]
Sec. 1.1152 Schedule of annual regulatory fees for wireless radio
services.
------------------------------------------------------------------------
Exclusive use services (per license) Fee amount \1\
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz and 220 MHz Local, Base
Station & SMRS) (47 CFR part 90):
(a) New, Renew/Mod (FCC 601 & 159).................. $30.00
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 30.00
159)...............................................
(c) Renewal Only (FCC 601 & 159).................... 30.00
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) 30.00
220 MHz Nationwide:
(a) New, Renew/Mod (FCC 601 & 159).................. 30.00
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 30.00
159)...............................................
(c) Renewal Only (FCC 601 & 159).................... 30.00
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) 30.00
2. Microwave (47 CFR part 101) (Private):
(a) New, Renew/Mod (FCC 601 & 159).................. 20.00
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 20.00
159)...............................................
(c) Renewal Only (FCC 601 & 159).................... 20.00
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) 20.00
3. Shared Use Services:
Land Mobile (Frequencies Below 470 MHz--except 220
MHz):
(a) New, Renew/Mod (FCC 601 & 159).................. 10.00
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 10.00
159)...............................................
(c) Renewal Only (FCC 601 & 159).................... 10.00
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) 10.00
Rural Radio (Part 22):
(a) New, Additional Facility, Major Renew/Mod 10.00
(Electronic Filing) (FCC 601 & 159)................
(b) Renewal, Minor Renew/Mod (Electronic Filing) 10.00
(FCC 601 & 159)....................................
Marine Coast:
(a) New Renewal/Mod (FCC 601 & 159)................. 35.00
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 35.00
159)...............................................
(c) Renewal Only (FCC 601 & 159).................... 35.00
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) 35.00
Aviation Ground:
(a) New, Renewal/Mod (FCC 601 & 159)................ 20.00
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 20.00
159)...............................................
(c) Renewal Only (FCC 601 & 159).................... 20.00
(d) Renewal Only (Electronic Only) (FCC 601 & 159).. 20.00
Marine Ship:
(a) New, Renewal/Mod (FCC 605 & 159)................ 15.00
(b) New, Renewal/Mod (Electronic Filing) (FCC 605 & 15.00
159)...............................................
(c) Renewal Only (FCC 605 & 159).................... 15.00
(d) Renewal Only (Electronic Filing) (FCC 605 & 159) 15.00
Aviation Aircraft:
(a) New, Renew/Mod (FCC 605 & 159).................. 10.00
(b) New, Renew/Mod (Electronic Filing) (FCC 605 & 10.00
159)...............................................
(c) Renewal Only (FCC 605 & 159).................... 10.00
(d) Renewal Only (Electronic Filing) (FCC 605 & 159) 10.00
4. CMRS Cellular/Mobile Services (per unit) (FCC 159)... \2\ .17
5. CMRS Messaging Services (per unit) (FCC 159)......... \3\ .08
6. Broadband Radio Service (formerly MMDS and MDS) 635
7. Local Multipoint Distribution Service................ 635
------------------------------------------------------------------------
0
3. Section 1.1153 is revised to read as follows:
---------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the
entire license term. Therefore, the annual fee amount shown in this
table that is a small fee (categories 1 through 5) must be
multiplied by the 5- or 10-year license term, as appropriate, to
arrive at the total amount of regulatory fees owed. Also,
application fees may apply as detailed in Sec. 1.1102. of this
chapter.
\2\ These are standard fees that are to be paid in accordance
with Sec. 1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance
with 1.1157(b) of this chapter.
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Sec. 1.1153 Schedule of annual regulatory fees and filing locations
for mass media services.
------------------------------------------------------------------------
Fee amount
------------------------------------------------------------------------
Radio [AM and FM] (47 CFR part 73):
1. AM Class A:
<=25,000 population............................. $775
25,001-75,000 population........................ 1,550
75,001-150,000 population....................... 2,325
150,001-500,000 population...................... 3,475
[[Page 55794]]
500,001-1,200,000 population.................... 5,025
1,200,001-3,000,000 population.................. 7,750
>3,000,000 population........................... 9,300
2. AM Class B:
<=25,000 population............................. 645
25,001-75,000 population........................ 1,300
75,001-150,000 population....................... 1,625
150,001-500,000 population...................... 2,750
500,001-1,200,000 population.................... 4,225
1,200,001-3,000,000 population.................. 6,500
>3,000,000 population........................... 7,800
3. AM Class C:
<=25,000 population............................. 590
25,001-75,000 population........................ 900
75,001-150,000 population....................... 1,200
150,001-500,000 population...................... 1,800
500,001-1,200,000 population.................... 3,000
1,200,001-3,000,000 population.................. 4,500
>3,000,000 population........................... 5,700
4. AM Class D:
<=25,000 population............................. 670
25,001-75,000 population........................ 1,000
75,001-150,000 population....................... 1,675
150,001-500,000 population...................... 2,025
500,001-1,200,000 population.................... 3,375
1,200,001-3,000,000 population.................. 5,400
>3,000,000 population........................... 6,750
5. AM Construction Permit........................... 590
6. FM Classes A, B1 and C3:
<=25,000 population............................. 750
25,001-75,000 population........................ 1,500
75,001-150,000 population....................... 2,050
150,001-500,000 population...................... 3,175
500,001-1,200,000 population.................... 5,050
1,200,001-3,000,000 population.................. 8,250
>3,000,000 population........................... 10,500
7. FM Classes B, C, C0, C1 and C2:
<=25,000 population............................. 925
25,001-75,000 population........................ 1,625
75,001-150,000 population....................... 3,000
150,001-500,000 population...................... 3,925
500,001-1,200,000 population.................... 5,775
1,200,001-3,000,000 population.................. 9,250
>3,000,000 population........................... 12,025
8. FM Construction Permits.......................... 750
TV (47 CFR part 73) Digital TV (UHF and VHF Commercial
Stations):
1. Markets 1 thru 10................................ 46,825
2. Markets 11 thru 25............................... 43,200
3. Markets 26 thru 50............................... 27,625
4. Markets 51 thru 100.............................. 16,275
5. Remaining Markets................................ 4,850
6. Construction Permits............................. 4,850
Satellite UHF/VHF Commercial:
1. All Markets...................................... 1,575
Low Power TV, Class A TV, TV/FM Translator, & TV/FM 440
Booster (47 CFR part 74)...............................
------------------------------------------------------------------------
0
4. Section 1.1154 is revised to read as follows:
Sec. 1.1154 Schedule of annual regulatory charges for common carrier
services.
------------------------------------------------------------------------
Fee amount
------------------------------------------------------------------------
Radio Facilities:
1. Microwave (Domestic Public Fixed) $20.00.
(Electronic Filing) (FCC Form 601 &
159).
Carriers:
1. Interstate Telephone Service $.00331.
Providers (per interstate and
international end-user revenues (see
FCC Form 499-A).
2. Toll Free Number Fee.............. .12 per Toll Free Number.
------------------------------------------------------------------------
[[Page 55795]]
0
5. Section 1.1155 is revised to read as follows:
Sec. 1.1155 Schedule of regulatory fees for cable television
services.
------------------------------------------------------------------------
Fee amount
------------------------------------------------------------------------
1. Cable Television Relay Service........ $660.
2. Cable TV System, Including IPTV (per 0.96.
subscriber).
3. Direct Broadcast Satellite (DBS)...... $.12 per subscriber.
------------------------------------------------------------------------
0
6. Section 1.1156 is revised to read as follows:
Sec. 1.1156 Schedule of regulatory fees for international services.
(a) The following schedule applies for the listed services:
------------------------------------------------------------------------
Fee category Fee amount
------------------------------------------------------------------------
Space Stations (Geostationary Orbit).................... $119,150
Space Stations (Non-Geostationary Orbit)................ 132,125
Earth Stations: Transmit/Receive & Transmit only (per 310
authorization or registration).........................
------------------------------------------------------------------------
(b) International Terrestrial and Satellite. Regulatory fees for
International Bearer Circuits are to be paid by facilities-based common
carriers that have active (used or leased) international bearer
circuits as of December 31 of the prior year in any terrestrial or
satellite transmission facility for the provision of service to an end
user or resale carrier, which includes active circuits to themselves or
to their affiliates. In addition, non-common carrier satellite
operators must pay a fee for each circuit sold or leased to any
customer, including themselves or their affiliates, other than an
international common carrier authorized by the Commission to provide
U.S. international common carrier services. ``Active circuits'' for
these purposes include backup and redundant circuits. In addition,
whether circuits are used specifically for voice or data is not
relevant in determining that they are active circuits.
The fee amount, per active 64 KB circuit or equivalent will be
determined for each fiscal year.
------------------------------------------------------------------------
International terrestrial and satellite
(capacity as of December 31, 2014) Fee amount
------------------------------------------------------------------------
Terrestrial Common Carrier Satellite $0.03 per 64 KB Circuit.
Common Carrier Satellite Non-Common
Carrier.
------------------------------------------------------------------------
(c) Submarine cable: Regulatory fees for submarine cable systems
will be paid annually, per cable landing license, for all submarine
cable systems operating as of December 31 of the prior year. The fee
amount will be determined by the Commission for each fiscal year.
------------------------------------------------------------------------
Submarine cable systems (capacity as of December 31,
2014) Fee amount
------------------------------------------------------------------------
<2.5 Gbps............................................... $7,175
2.5 Gbps or greater, but less than 5 Gbps............... 14,350
5 Gbps or greater, but less than 10 Gbps................ 28,675
10 Gbps or greater, but less than 20 Gbps............... 57,350
20 Gbps or greater...................................... 114,700
------------------------------------------------------------------------
[FR Doc. 2015-23312 Filed 9-16-15; 8:45 am]
BILLING CODE 6712-01-P