Assessment and Collection of Regulatory Fees for Fiscal Year 2016, 35680-35698 [2016-13087]
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Federal Register / Vol. 81, No. 107 / Friday, June 3, 2016 / Proposed Rules
PROPOSED ACTION ON LOUISIANA INFRASTRUCTURE SIP SUBMITTAL FOR VARIOUS NAAQS—Continued
Element
2006
PM2.5
2008
Pb
2008
Ozone
2010
NO2
2010
SO2
2012
PM2.5
(D)(i)(II): PSD (requirement 3) .....................................................
(D)(i)(II): Visibility Protection (requirement 4) ..............................
(D)(ii): Interstate and International Pollution Abatement .............
(E)(i): Adequate resources ...........................................................
(E)(ii): State boards ......................................................................
(E)(iii): Necessary assurances with respect to local agencies ....
(F): Stationary source monitoring system ....................................
(G): Emergency power .................................................................
(H): Future SIP revisions .............................................................
(I): Nonattainment area plan or plan revisions under part D ......
(J)(i): Consultation with government officials ...............................
(J)(ii): Public notification ...............................................................
(J)(iii): PSD ...................................................................................
(J)(iv): Visibility protection ............................................................
(K): Air quality modeling and data ...............................................
(L): Permitting fees ......................................................................
(M): Consultation and participation by affected local entities ......
A
D
A
A
A
A
A
A
A
+
A
A
A
+
A
A
A
A
A
A
A
A
A
A
A
A
+
A
A
A
+
A
A
A
A
D
A
A
A
A
A
A
A
+
A
A
A
+
A
A
A
A
D
A
A
A
A
A
A
A
+
A
A
A
+
A
A
A
A
D
A
A
A
A
A
A
A
+
A
A
A
+
A
A
A
A
D
A
A
A
A
A
A
A
+
A
A
A
+
A
A
A
Key to Table 1: Proposed action on LA infrastructure SIP submittals for various NAAQS
A—Approve
A*—Approved at an earlier date
+—Not germane to infrastructure SIPs
No action—EPA is taking no action on this infrastructure requirements
NA—Not applicable
D—Disapprove
Based upon review of the state’s
infrastructure SIP submissions and
relevant statutory and regulatory
authorities and provisions referenced in
these submissions or referenced in
Louisiana’s SIP, EPA believes that
Louisiana has the infrastructure in place
to address all applicable required
elements of sections 110(a)(1) and (2)
(except as noted in table above) to
ensure that the 2006 PM2.5, 2008 Pb,
2008 O3, 2010 NO2, 2010 SO2, and 2012
PM2.5 NAAQS are implemented in the
state.
mstockstill on DSK3G9T082PROD with PROPOSALS
IV. Statutory and Executive Order
Reviews
Under the Clean Air Act, the
Administrator is required to approve a
SIP submission that complies with the
provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k);
40 CFR 52.02(a). Thus, in reviewing SIP
submissions, EPA’s role is to approve
state choices, provided that they meet
the criteria of the Clean Air Act.
Accordingly, this action merely
proposes to approve state law as
meeting Federal requirements and does
not impose additional requirements
beyond those imposed by state law. For
that reason, this action:
• Is not a ‘‘significant regulatory
action’’ subject to review by the Office
of Management and Budget under
Executive Orders 12866 (58 FR 51735,
October 4, 1993) and 13563 (76 FR 3821,
January 21, 2011);
• Does not impose an information
collection burden under the provisions
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of the Paperwork Reduction Act (44
U.S.C. 3501 et seq.);
• Is certified as not having a
significant economic impact on a
substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.);
• Does not contain any unfunded
mandate or significantly or uniquely
affect small governments, as described
in the Unfunded Mandates Reform Act
of 1995 (Pub. L. 104–4);
• Does not have Federalism
implications as specified in Executive
Order 13132 (64 FR 43255, August 10,
1999);
• Is not an economically significant
regulatory action based on health or
safety risks subject to Executive Order
13045 (62 FR 19885, April 23, 1997);
• Is not a significant regulatory action
subject to Executive Order 13211 (66 FR
28355, May 22, 2001);
• Is not subject to requirements of
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) because
application of those requirements would
be inconsistent with the CAA; and
• Does not provide EPA with the
discretionary authority to address, as
appropriate, disproportionate human
health or environmental effects, using
practicable and legally permissible
methods, under Executive Order 12898
(59 FR 7629, February 16, 1994).
The SIP is not approved to apply on
any Indian reservation land or in any
other area where EPA or an Indian tribe
has demonstrated that a tribe has
jurisdiction. In those areas of Indian
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country, the proposed rule does not
have tribal implications and will not
impose substantial direct costs on tribal
governments or preempt tribal law as
specified by Executive Order 13175 (65
FR 67249, November 9, 2000).
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Incorporation by
reference, Intergovernmental relations,
Interstate transport of pollution, Lead,
Nitrogen dioxide, Ozone, Particulate
matter, Reporting and recordkeeping
requirements, Sulfur oxides.
Authority: 42 U.S.C. 7401 et seq.
Dated: May 18, 2016.
Ron Curry,
Regional Administrator, Region 6.
[FR Doc. 2016–13032 Filed 6–2–16; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 1
[MD Docket Nos. 16–166; FCC 16–61]
Assessment and Collection of
Regulatory Fees for Fiscal Year 2016
Federal Communications
Commission.
ACTION: Notice of proposed rulemaking.
AGENCY:
In this document, the Federal
Communications Commission
(Commission) will revise its Schedule of
Regulatory Fees in order to recover an
SUMMARY:
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Federal Register / Vol. 81, No. 107 / Friday, June 3, 2016 / Proposed Rules
amount of $384,012,497 that Congress
has required the Commission to collect
for fiscal year 2016. 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: Submit comments on or before
June 20, 2016, and reply comments on
or before July 5, 2016.
ADDRESSES: You may submit comments,
identified by MD Docket No. 16–166, by
any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Federal Communications
Commission’s Web site: https://
www.fcc.gov/cgb/ecfs. Follow the
instructions for submitting comments.
• People with Disabilities: Contact
the FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by email: FCC504@fcc.gov
or phone: 202–418–0530 or TTY: 202–
418–0432.
• Email: ecfs@fcc.gov. Include MD
Docket No. 16–166 in the subject line of
the message.
• Mail: Commercial overnight mail
(other than U.S. Postal Service Express
Mail, and Priority Mail, must be sent to
9300 East Hampton Drive, Capitol
Heights, MD 20743. U.S. Postal Service
first-class, Express, and Priority mail
should be addressed to 445 12th Street
SW., Washington, DC 20554.
For detailed instructions for
submitting comments and additional
information on the rulemaking process,
see the SUPPLEMENTARY INFORMATION
section of this document.
FOR FURTHER INFORMATION CONTACT:
Roland Helvajian, Office of Managing
Director at (202) 418–0444.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Notice of
Proposed Rulemaking (NPRM), FCC 16–
61, MD Docket No. 16–166, adopted on
May 18, 2016, and released on May 19,
2016. The full text of this document is
available for inspection and copying
during normal business hours in the
FCC Reference Center, 445 12th Street
SW., Room CY–A257, Portals II,
Washington, DC 20554, and may also be
purchased from the Commission’s copy
contractor, BCPI, Inc., Portals II, 445
12th Street SW., Room CY–B402,
Washington, DC 20554. Customers may
contact BCPI, Inc. via their Web site,
https://www.bcpi.com, or call 1–800–
378–3160. This document is available in
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alternative formats (computer diskette,
large print, audio record, and braille).
Persons with disabilities who need
documents in these formats may contact
the FCC by email: FCC504@fcc.gov or
phone: 202–418–0530 or TTY: 202–418–
0432.
I. Procedural Matters
A. Ex Parte Rules Permit-But-Disclose
Proceeding
1. This Notice of Proposed
Rulemaking (FY 2016 NPRM) shall be
treated as a ‘‘permit-but-disclose’’
proceeding in accordance with the
Commission’s ex parte rules. Persons
making ex parte presentations must file
a copy of any written presentation or a
memorandum summarizing any oral
presentation within two business days
after the presentation (unless a different
deadline applicable to the Sunshine
period applies). Persons making oral ex
parte presentations are reminded that
memoranda summarizing the
presentation must list all persons
attending or otherwise participating in
the meeting at which the ex parte
presentation was made, and summarize
all data presented and arguments made
during the presentation. If the
presentation consisted in whole or in
part of the presentation of data or
arguments already reflected in the
presenter’s written comments,
memoranda, or other filings in the
proceeding, the presenter may provide
citations to such data or arguments in
his or her prior comments, memoranda,
or other filings (specifying the relevant
page and/or paragraph numbers where
such data or arguments can be found) in
lieu of summarizing them in the
memorandum. Documents shown or
given to Commission staff during ex
parte meetings are deemed to be written
ex parte presentations and must be filed
consistent with section 1.1206(b). In
proceedings governed by section 1.49(f)
or for which the Commission has made
available a method of electronic filing,
written ex parte presentations and
memoranda summarizing oral ex parte
presentations, and all attachments
thereto, must be filed through the
electronic comment filing system
available for that proceeding, and must
be filed in their native format (e.g., .doc,
.xml, .ppt, searchable .pdf). Participants
in this proceeding should familiarize
themselves with the Commission’s ex
parte rules.
B. Comment Filing Procedures
2. Comments and Replies. Pursuant to
sections 1.415 and 1.419 of the
Commission’s rules, 47 CFR 1.415,
1.419, interested parties may file
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35681
comments and reply comments on or
before the dates indicated on the first
page of this document. Comments may
be filed using: (1) The Commission’s
Electronic Comment Filing System
(ECFS), (2) the Federal Government’s
eRulemaking Portal, or (3) by filing
paper copies. See Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121 (1998).
• Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://
fjallfoss.fcc.gov/ecfs2/ or the Federal
eRulemaking Portal: https://
www.regulations.gov.
• Paper Filers: Parties who choose to
file by paper must file an original and
four copies of each filing. If more than
one docket or rulemaking number
appears in the caption of this
proceeding, filers must submit two
additional copies for each additional
docket or rulemaking number.
Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
D All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th St. SW., Room TW–A325,
Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes must be disposed of before
entering the building.
D Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743.
D U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW.,
Washington, DC 20554.
People with Disabilities: To request
materials in accessible formats for
people with disabilities (braille, large
print, electronic files, audio format),
send an email to fcc504@fcc.gov or call
the Consumer & Governmental Affairs
Bureau at 202–418–0530 (voice), 202–
418–0432 (tty).
3. Availability of Documents.
Comments, reply comments, and ex
parte submissions will be available for
public inspection during regular
business hours in the FCC Reference
Center, Federal Communications
Commission, 445 12th Street SW., CY–
A257, Washington, DC 20554. These
documents will also be available free
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online, via ECFS. Documents will be
available electronically in ASCII, Word,
and/or Adobe Acrobat.
4. Accessibility Information. To
request information in accessible
formats (computer diskettes, large print,
audio recording, and Braille), send an
email to fcc504@fcc.gov or call the
Commission’s Consumer and
Governmental Affairs Bureau at (202)
418–0530 (voice), (202) 418–0432
(TTY). This document can also be
downloaded in Word and Portable
Document Format (‘‘PDF’’) at: https://
www.fcc.gov.
C. Initial Regulatory Flexibility Analysis
5. An initial regulatory flexibility
analysis (IRFA) is contained in this
document. Comments to the IRFA must
be identified as responses to the IRFA
and filed by the deadlines for comments
on this NPRM. The Commission will
send a copy of this NPRM, including the
IRFA, to the Chief Counsel for Advocacy
of the Small Business Administration.
D. Initial Paperwork Reduction Act
6. 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).
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II. Introduction
7. In this Notice of Proposed
Rulemaking (NPRM), we seek comment
on the Federal Communications
Commission’s (FCC’s or Commission’s)
proposed regulatory fees for fiscal year
(FY) 2016. Specifically, the Commission
proposes to collect $384,012,497.00 in
regulatory fees as detailed in the
proposed fee schedule attached to this
NPRM in Table 4. As explained in this
NPRM, the proposed fee schedule
includes adjustments to the table used
to assess regulatory fees on broadcasters.
III. Background
8. The Commission is required by
Congress to assess regulatory fees each
year in an amount that can reasonably
be expected to equal the amount of its
appropriation.1 Regulatory fees are
mandated by Congress and are collected
1 47 U.S.C. 159(b)(1)(B). The Commission
collected $7.67 million above the required
regulatory fee target goal in FY 2015, which the
Commission deposited into the U.S. Treasury. The
cumulative over collection is $98.367 million as of
September 30, 2015.
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‘‘to recover the costs of . . .
enforcement activities, policy and
rulemaking activities, user information
services, and international activities.’’ 2
Regulatory fees are to ‘‘be derived by
determining the full-time equivalent
number of employees performing’’ these
activities, ‘‘adjusted to take into account
factors that are reasonably related to the
benefits provided to the payer of the fee
by the Commission’s activities . . . .’’ 3
Regulatory fees recover direct costs,
such as salary and expenses; indirect
costs, such as overhead functions; and
support costs, such as rent, utilities, or
equipment.4 Regulatory fees also cover
the costs incurred in regulating entities
that are statutorily exempt from paying
regulatory fees,5 entities whose
regulatory fees are waived,6 and entities
that provide services for which we do
not assess regulatory fees.
9. Congress sets the amount the
Commission must collect each year in
the Commission’s fiscal year
appropriations. Section 9(a)(2) of the
Communications Act, as amended
(Communications Act or Act) requires
the Commission to collect fees sufficient
to offset the amount appropriated.7 To
calculate regulatory fees, the
Commission allocates the total
collection target across all regulatory fee
categories. The allocation of fees to fee
categories is based on the Commission’s
calculation of FTEs 8 in each regulatory
fee category. FTEs are classified as
‘‘direct’’ if the employee is in one of the
four ‘‘core’’ bureaus; otherwise, that
employee is considered an ‘‘indirect’’
FTE.9 The total FTEs for each fee
2 47
U.S.C. 159(a).
3 47 U.S.C. 159(b)(1)(A).
4 Assessment and Collection of Regulatory Fees
for Fiscal Year 2004, Report and Order, 19 FCC Rcd
11662, 11666, para. 11 (2004) (FY 2004 Report and
Order).
5 For example, governmental and nonprofit
entities are exempt from regulatory fees under
section 9(h) of the Communications Act of 1934, as
amended (Communications Act or Act). 47 U.S.C.
159(h); 47 CFR 1.1162.
6 47 CFR 1.1166.
7 47 U.S.C. 159(a)(2).
8 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.
9 The core bureaus are the Wireline Competition
Bureau (165 FTEs), Wireless Telecommunications
Bureau (92 FTEs), Media Bureau (151 FTEs), and
part of the International Bureau (24 FTEs), totaling
432 direct FTEs. The indirect FTEs are the
employees from the following bureaus and offices:
Enforcement Bureau, Consumer & Governmental
Affairs Bureau, Public Safety and Homeland
Security Bureau, part of the International Bureau,
Chairman and Commissioners’ offices, Office of the
Managing Director, Office of General Counsel,
Office of the Inspector General, Office of
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category includes the direct FTEs
associated with that category, plus a
proportional allocation of indirect FTEs.
The Commission then allocates the total
amount to be collected among the
various regulatory fee categories. Each
regulatee within a fee category pays its
proportionate share based on an
objective measure, e.g., revenues,
number of subscribers, or licenses.10
10. The Commission continues to
improve the regulatory fee process by
ensuring a more equitable distribution
of the regulatory fee burden among
categories of Commission licensees
under the statutory framework in
section 9 of the Communications Act.
Specifically, 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; 11 reallocated some FTEs
from the International Bureau as
‘‘indirect;’’ 12 combined the UHF and
VHF television stations into one
regulatory fee category; 13 and created a
regulatory fee category that included
Internet Protocol Television (IPTV).14
Subsequently, in the FY 2014 Report
and Order and FNPRM, the Commission
adopted a new fee subcategory (within
the Interstate Telecommunications
Service Provider (ITSP) category) for toll
free numbers; 15 increased the de
minimis threshold for annual regulatory
fee payors; 16 and eliminated several
categories from the regulatory fee
schedule.17 In the FY 2015 NPRM and
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 1,046 indirect FTEs. These totals
are as of Oct. 1, 2015 and exclude auctions funded
FTEs.
10 See Procedures for Assessment and Collection
of Regulatory Fees, Notice of Proposed Rulemaking,
27 FCC Rcd 8458, 8461–62, paras. 8–11 (2012) (FY
2012 NPRM).
11 Assessment and Collection of Regulatory Fees
for Fiscal Year 2013, Report and Order, 28 FCC Rcd
12351, 12354–58, paras 10–20 (2013) (FY 2013
Report and Order). This was recommended in a
report issued by the Government Accountability
Office (GAO) in 2012. See GAO ‘‘Federal
Communications Commission Regulatory Fee
Process Needs to be Updated,’’ GAO–12–686
(August 2012) (GAO Report) at 36, (available at
https://www.gao.gov/products/GAO-12-686).
12 FY 2013 Report and Order, 28 FCC Rcd at
12355–58, paras. 13–20.
13 Id., 28 FCC Rcd at 12361–62, paras. 29–31.
14 Id., 28 FCC Rcd at 12362–63, paras. 32–33.
15 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).
16 FY 2014 Report and Order and FNPRM, 29 FCC
Rcd at 10774–76, paras. 18–21.
17 Id., 29 FCC Rcd at 10776–77, paras. 22–24.
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Report and Order, the Commission
added a subcategory for Direct
Broadcast Satellite (DBS) providers (in
the cable television and IPTV regulatory
fee category) based on the finding that
Media Bureau FTEs work on issues and
proceedings that include DBS as well as
other multichannel video programming
distributors (MVPDs).18 In addition, in
the FY 2015 NPRM and Report and
Order, we sought comment on revising
the regulatory fee schedule for
broadcasters.19
IV. Discussion
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A. Notice of Proposed Rulemaking
11. We propose to collect
$384,012,497 in regulatory fees for FY
2016, pursuant to section 9 of the
Communications Act.20 Of this amount,
we project approximately $21.4 million
(5.56 percent of the total FTE allocation)
in fees from the International Bureau
regulatees; 21 $81.9 million (21.3 percent
of the total FTE allocation) in fees from
the Wireless Telecommunications
Bureau regulatees; 22 $133.97 million
(34.95 percent of the total FTE
allocation) from the Media Bureau
regulatees; 23 and $146.8 million (38.19
percent of the total FTE allocation) from
Wireline Competition Bureau
regulatees.24
12. These regulatory fees are
mandated by Congress and are collected
‘‘to recover the costs of . . .
18 Assessment and Collection of Regulatory Fees
for Fiscal Year 2015, Notice of Proposed
Rulemaking, Report and Order, and Order, 30 FCC
Rcd 5354, 5364–5373, paras. 28–41 (2015) (FY 2015
NPRM and Report and Order). We also eliminated
two additional fee categories. See id., 30 FCC Rcd
at 5361–62, paras. 19–22.
19 Id., 30 FCC Rcd at 5359, para. 13. In the FY
2015 Report and Order and FNPRM, we sought
further comment on the broadcast regulatory fees
issue and also sought comment on ITTA’s proposal
to reallocate FTEs in the Wireline Competition
Bureau. Assessment and Collection of Regulatory
Fees for Fiscal Year 2015, Report and Order and
Further Notice of Proposed Rulemaking, 30 FCC
Rcd 10268, 10279–282, paras. 27–34 (2015) (FY
2015 Report and Order and FNPRM).
20 47 U.S.C. 159. The proposed regulatory fee
rates for FY 2016 include $339,844,000 for
operational expenses and an additional one time
amount of $44,168,497 to offset facilities reduction,
i.e., reduce our office space footprint and move the
FCC office location if necessary. Consolidated
Appropriations Act, 2016, Public Law 114–113,
Dec. 18, 2015. Due to the facilities reduction,
regulatees’ aggregate fees by category increased on
average by approximately 11–13 percent for 2016.
21 Includes satellites, earth stations, submarine
cable, and bearer circuits.
22 Includes Commercial Mobile Radio Service
(CMRS), CMRS messaging, Broadband Radio
Service/Local Multipoint Distribution Service (BRS/
LMDS), and multi-year wireless licensees.
23 Includes AM radio, FM radio, television, low
power/FM, cable television and IPTV, DBS, and
Cable Television Relay Service (CARS) licenses.
24 Includes Interstate Telecommunications
Service Providers (ITSP) and toll free numbers.
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enforcement activities, policy and
rulemaking activities, user information
services, and international activities.’’ 25
We seek comment on the proposed
regulatory fee schedule in Table 4.
1. DBS Regulatory Fees as a Subcategory
in the Cable Television and IPTV
Category
13. This proposed fee schedule
includes an updated regulatory fee for
DBS, a subcategory in the cable
television and IPTV category.26 In 2015,
the Commission adopted the initial
regulatory fee for DBS, as a subcategory
in the cable television and IPTV
category, of 12 cents per year per
subscriber, or one cent per month.27 At
that time, the Commission stated that it
would update the rate for FY 2016, as
necessary for ensuring an appropriate
level of regulatory parity and
considering the resources dedicated to
this subcategory.28 When the
Commission adopted this regulatory fee
subcategory for DBS, the Commission
observed that numerous regulatory
developments had increased the Media
Bureau FTE activity involving
regulation and oversight of MVPDs,
including DBS providers.29 For
example, DBS providers (and cable
television operators) are permitted to
file program access complaints 30 and
complaints seeking relief under the
retransmission consent good faith
rules; 31 DBS providers are subject to
MVPD requirements such as those
pertaining to program carriage; 32 and
they are subject to the requirement to
negotiate retransmission consent in
good faith.33 In addition, the
Commission, in recent years, adopted
numerous requirements that apply to all
MVPDs, and thus DBS providers, as part
of its implementation of the Commercial
Advertisement Loudness Mitigation Act
(CALM Act),34 the Twenty-First Century
Communications and Video
Accessibility Act of 2010 (CVAA),35 as
25 47
U.S.C. 159(a).
also pays a regulatory per operational
station in geostationary orbit.
27 FY 2015 Report and Order and FNPRM, 30 FCC
Rcd at 10276–77, paras. 19–20.
28 Id., 30 FCC Rcd at 10277, para. 20.
29 See FY 2015 NPRM and Report and Order, 30
FCC Rcd at 5367–68, para. 31.
30 47 U.S.C. 548; 47 CFR 76.1000–1004.
31 47 U.S.C. 325(b)(1), (3)(C)(ii); 47 CFR 76.65(b).
32 47 U.S.C. 536; 47 CFR 76.1300–1302.
33 47 U.S.C. 325(b)(3)(C)(iii); 47 CFR 76.65(a)–(b).
34 See Implementation of the Commercial
Advertisement, Loudness Mitigation (CALM) Act,
Report and Order, 26 FCC Rcd 17222 (2011) (CALM
Act Report and Order).
35 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.
26 DBS
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35683
well as the Satellite Television
Extension and Localism Act (STELA)
Reauthorization Act of 2014
(STELAR).36
14. FY 2015 was the first time the
Commission assessed a regulatory fee
for DBS based on Media Bureau FTEs.
At that time, the Commission concluded
an initial rate of 12 cents per subscriber
per year was a sensible fee supported by
data and analysis for FY 2015.37 In
adopting the regulatory fee for DBS as
a subcategory of cable television and
IPTV category, the Commission
explained that ‘‘although DBS is not
identical to cable television and IPTV,
the services all receive oversight and
regulation as a result of the work of
Media Bureau FTEs on MVPD issues.
The burden imposed on the
Commission is therefore similar.’’ 38 At
the same time, the Commission also
explained that it would examine the
appropriate allocation between and
among MVPD regulatees in the coming
years as the Commission implemented
the new DBS fee.39 Such examination is
36 The STELA Reauthorization Act of 2014
(STELAR), Public Law 113–200, 128 Stat. 2059
(2014). STELAR was enacted on December 4, 2014
(H.R. 5728, 113th Cong.). Commission work on
implementation of the Act was immediate. See, e.g.,
Implementation of Sections 101, 103 and 105 of the
STELA Reauthorization Act of 2014, Order, 30 FCC
Rcd 2380 (2015) (implementing certain STELAR
provisions under the ‘‘good cause’’ exception to the
Administrative Procedure Act); Amendment to the
Commission’s Rules Concerning Market
Modification, Implementation of Section 102 of the
STELA Reauthorization Act of 2014, Report and
Order, 30 FCC Rcd 10406 (2015) (adopting satellite
television market modification rules to enable
satellite carriers, cable operators, and commercial
television stations to better serve the interests of
their local communities); Implementation of
Section 103 of the STELA Reauthorization Act of
2014, Notice of Proposed Rulemaking, 30 FCC Rcd
10327 (2015) (seeking comment on potential
updates to the ‘‘totality of the circumstances’’ test
for good faith negotiation of retransmission
consent); Final Report of the DSTAC, available at
https://transition.fcc.gov/dstac/dstac-report-final08282015.pdf; ‘‘Media Bureau Seeks Comment on
DSTAC Report,’’ Public Notice, DA 15–982, 2015
WL 5164960 (MB 2015); ‘‘Media Bureau Seeks
Comment for Report Required by the STELA
Reauthorization Act of 2014,’’ Public Notice, 30
FCC Rcd 1904 (2015) (seeking information for a
report to Congress on designated market areas and
considerations for fostering increased localism).
37 See FY 2015 Report and Order and FNPRM, 30
FCC Rcd at 10276–77, para. 20. 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 223, 232 (5th
Cir. 1979); National Cable Television Ass’n v. FCC,
554 F.2d 1094, 1105 (D.C. Cir. 1976).
38 FY 2015 NPRM and Report and Order, 30 FCC
Rcd at 5369, para. 33.
39 FY 2015 NPRM and Report and Order, 30 FCC
Rcd at 5367–68, para. 34, n.129 (The Commission
explained that ‘‘[e]ven when an industry has
oversight generally by one organizational unit
within the Commission, we are sensitive to the fact
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consistent with a report issued by the
Government Accountability Office
(GAO) in 2012, which observed it is
important for the Commission to
‘‘regularly update analyses to ensure
that fees are set based on relevant
information.’’ 40
15. In addition to the activities
described in our FY 2015 regulatory fee
proceeding, DBS, along with other
MVPDs, continues to receive oversight
and regulation as a result of the work of
Media Bureau FTEs. For example, the
Commission recently adopted a Report
and Order requiring cable operators,
DBS providers, and certain other
licensees to post their public file
documents to the FCC-hosted online
database.41 In addition, the Commission
is currently reviewing a proposal by
Chairman Wheeler to unlock the set-top
box of cable and DBS operators.42 Thus,
for reasons similar to those discussed in
the FY 2015 NPRM and Report and
Order,43 and based on the Commission’s
analysis of the resources dedicated to
this subcategory, including the
resources dedicated to the pending
portfolio of MVPD proceedings, the
Commission proposes to revise the DBS
fee rate. Specifically, in this FY 2016
regulatory fee proceeding, the
Commission seeks comment on a higher
regulatory fee rate of 27 cents per
subscriber per year for FY 2016, as set
forth in the proposed fee schedule. This
fee includes a 24 cent per subscriber
baseline with a proportional adjustment
of three cents per subscriber associated
with the Commission’s facilities
reduction costs.
2. Broadcaster Regulatory Fees
16. The Commission assesses
regulatory fees on radio broadcasters
based on type and class of service and
on the population served. Upon
occasion, the Commission makes
adjustments to the methodology for
assessing regulatory fees on radio
broadcasters. For example, concerning
population served, the Commission
adopted a methodology that relied on
the radio station’s calculated field
strength signal contour overlaid upon
U.S. Census data to obtain an estimate
of the population coverage for each
station.44 Subsequently, licensees
complained to the Commission that the
contours exaggerated actual market
areas and populations served. The
Commission addressed these concerns
through revising the methodology for
calculating the fees.45 Similarly, in
2003, due to a trend toward more
powerful stations and general increases
in the overall population, an increasing
number of stations were grouped in the
one million-plus population category of
the grid and the Commission expanded
the AM and FM radio station grid to
include wider population thresholds
and extended the population category to
an amount ‘‘greater than three
million.’’ 46
17. In the FY 2015 Report and Order
and FNPRM, the Commission proposed
to include a higher population row in
the table for AM and FM broadcasters,
i.e., to divide broadcasters that serve
3,000,001–6,000,000 from those that
have a higher population coverage.47
Similarly in the FY 2015 Report and
Order and FNPRM, the Commission also
proposed to standardize the incremental
increase in fees as the population served
increases 48 and to more consistently
assess fees based on the type and class
of service.49 No comments were
received by the Commission concerning
this proposal. The Commission now
tentatively concludes adopting these
proposals will make the regulatory fees
for AM and FM radio more rational and
address, in part, the problem of a large
number of stations in the highest grid.50
The Commission seeks comment on the
following proposed table of regulatory
fees for AM and FM radio broadcasters,
which includes fees based on the
adoption of both options.
TABLE 1
FY 2016 Radio station regulatory fees
(proposed)
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 .................................
3,000,001–6,000,00 .................................
>6,000,000 ...............................................
$1,100
1,650
2,200
3,300
5,500
8,250
11,000
13,750
AM Class B
AM Class C
$795
1,200
1,600
2,375
3,975
5,950
7,950
9,950
$690
1,025
1,375
2,075
3,450
5,175
6,900
8,625
18. Concerning television
broadcasters, in the FY 2015 Report and
Order and FNPRM, the Commission
mstockstill on DSK3G9T082PROD with PROPOSALS
AM Class D
44 Assessment and Collection of Regulatory Fees
for Fiscal Year 1997, Report and Order, 12 FCC Rcd
17161, 17179–17184, paras. 47–56 (1997).
45 Assessment and Collection of Regulatory Fees
for Fiscal Year 1998, Report and Order, 13 FCC Rcd
19820, 19830–33, paras. 31–41 (1998).
46 Assessment and Collection of Regulatory Fees
for Fiscal Year 2003, Report and Order, 18 FCC Rcd
15985, 15986–87, paras. 4–5 (2003).
47 FY 2015 Report and Order and FNPRM, 30 FCC
Rcd at 10280, para. 28.
48 Id. Specifically, we sought comment on
standardizing the incremental increase in fees as
radio broadcasters increase the population they
serve, such as by requiring that fee adjustments
$1,200
1,800
2,400
3,600
6,000
9,000
12,000
15,000
FM Classes
B, C, C0,
C1 & C2
$1,375
2,050
2,750
4,125
6,875
10,300
13,750
17,175
proposed to readjust the table to restore
the traditional determination that Top
10 stations should pay about twice what
that balance between members of the same industry
may require adjustments to FTE allocations.’’).
40 GAO Report at 12.
41 Expansion of Online Public File Obligations to
Cable and Satellite TV Operators and Broadcast
and Satellite Radio Licensees, Memorandum,
Opinion and Order, FCC 16–4, 2016 WL 380814
(released January 29, 2016).
42 ‘‘Expanding Consumer Choice in the Video
Marketplace’’ (January 28, 2016), available at
https://www.fcc.gov/news-events/blog/2016/01/28/
expanding-consumer-choice-video-marketplace.
43 FY 2015 NPRM and Report and Order, 30 FCC
Rcd at 5367–5373, paras. 31–41.
$760
1,150
1,525
2,275
3,800
5,700
7,600
9,500
FM Classes
A, B1 & C3
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between tiers monotonically increase as the
population served increases. Id.
49 Id. We sought comment on assessing fees based
on the relative type and class of service, such as by
assessing FM class B, C, C0, C1, & C2 stations at
twice the rate of AM class C stations, and FM class
A, B1, & C3 stations assessed at 75 percent more
than AM class C stations. For AM stations, we
sought comment on assessing AM class A stations
at 60 percent more, AM class B stations at 15
percent more, and AM class D stations at 10 percent
more than AM class C stations. Id.
50 FY 2015 Report and Order and FNPRM, 30 FCC
Rcd at 10279–280, paras. 27–28.
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accurately calculate and report IBCs.55
The Commission reminded facilitiesbased common carriers that they must
include all common carrier circuits used
by themselves or their affiliates when
calculating the number of active
circuits. The Commission also indicated
that 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. In this regard, the
TABLE 2
Commission seeks comment on how we
can ensure that all providers are
FY 2016 Television station regulatory fees
(proposed)
calculating and reporting IBCs in the
same manner. What criteria do
Digital TV (47 CFR
FY 2016
FY 2015
providers use to distinguish common
part 73) VHF and
Proposed
Fee rates
carrier terrestrial circuits from nonUHF commercial
fee rates
common carrier terrestrial circuits for
Markets 1–10 ........
$46,825
$60,775 regulatory fee purposes?
Markets 11–25 ......
43,200
45,750
21. As the Commission has stated in
Markets 26–50 ......
27,625
30,575 the past, non-common carrier terrestrial
Markets 51–100 ....
16,275
15,225 circuits play an important role in the
Remaining Markets
4,850
5,000
provision of international services
Construction Permits ....................
4,850
5,000 through microwave and fiber links
across the U.S.-Canada and U.S.-Mexico
borders, and the Commission regularly
19. The Commission also recognizes
that the incentive auction scheduled for engages with counterparts in Canada
and Mexico on a wide range of issues
2016 is a substantial event for the
related to cross-border
television broadcast industry. As a
56
result, in the FY 2015 Report and Order communications. In 2009, the
Commission explored whether carriers
and FNPRM, the Commission sought
should be assessed regulatory fees for
comment on whether, when, and how
their terrestrial non-common carrier
the Commission should adjust its
circuits, but declined to do so at that
methodology for assessing regulatory
time because of the ‘‘complexity of the
fees on television stations to respond to
legal, policy and equity issues
such potential changed circumstances
57
consistent with the provisions of section involved.’’ Since that time, the
telecommunications industry and
9 of the Communications Act.52 While
Commission’s rules have evolved, and
the Commission received comments on
the Commission now seeks comment on
the issue,53 it is too early to revise our
whether it would be more equitable to
regulatory fee apportionment because of
no longer distinguish common carrier
the uncertainty in events that have yet
terrestrial circuits from non-common
to happen. The Commission intends to
carrier terrestrial circuits for regulatory
consider any changed circumstances
fee purposes. If the Commission
due to the incentive auction as part of
requires carriers providing international
the FY 2017 regulatory fee proceeding.
service over terrestrial circuits to pay
3. International Services: Terrestrial and IBC regulatory fees for their noncommon carrier circuits, what is the
Satellite Services
least burdensome methodology for
20. Facilities-based common carriers
must pay regulatory fees for terrestrial
55 FY 2015 Report and Order and FNPRM, 30 FCC
and satellite International Bearer
Rcd 10268, 10283–85, para. 40 and n.128.
56 Assessment and Collection of Regulatory Fees
Circuits (IBCs) active (used or leased) as
for Fiscal Year 2009, Notice of Proposed
of December 31 of the prior year in any
Rulemaking and Order, 24 FCC Rcd 5966, 5971,
terrestrial or satellite transmission
para. 14 (2009).
facility for the provision of service to an
57 Assessment and Collection of Regulatory Fees
end user or resale carrier.54 In the FY
for Fiscal Year 2009, Report and Order, 24 FCC Rcd
2015 Report and Order and FNPRM, the 10301, 10306–307, paras. 16–17 (2009). On March
17, 2009, the Commission adopted in the
Commission asked facilities-based
Submarine Cable Order a new submarine cable
common carriers to review their
bearer circuit methodology that allocates IBC costs
reporting processes to ensure that they
among service providers in an equitable and
mstockstill on DSK3G9T082PROD with PROPOSALS
stations in markets 26–50 pay.51 The
Commission did not receive comments
on this proposal. At this time, the
Commission tentatively concludes that
this proposal will make the regulatory
fees for television broadcasters more
rational. Accordingly, the Commission
seeks comment on the regulatory fees
for television broadcasters as set forth in
Table 4.
51 FY
2015 Report and Order and FNPRM, 30 FCC
Rcd at 10280–81, para. 29.
52 FY 2015 Report and Order and FNPRM, 30 FCC
Rcd at 10281, para. 30.
53 NAB Comments at 2–7.
54 See para. 22 infra.
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competitively neutral manner, without
distinguishing between common carriers and noncommon carriers, by assessing a flat per cable
landing license fee for all submarine cable systems.
Assessment and Collection of Regulatory Fees for
Fiscal Year 2008, Second Report and Order, 24 FCC
Rcd 4208, 4214–16, paras. 13–17 (2009) (Submarine
Cable Order).
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calculating fees? For example, should
the Commission require carriers to
report the total amount of international
revenue rather than the number of
circuits? How do carriers identify their
international revenues? How can the
Commission ensure carriers are
accurately reporting both common
carrier and non-common carrier
terrestrial circuits? Finally, how can the
Commission improve the requirements
and regulatory treatment of terrestrial
and satellite services for purposes of
regulatory fees?
4. Other Regulatory Fee Reform
a. ITTA Proposal
22. In the FY 2015 Report and Order
and FNPRM, the Commission sought
comment on ITTA’s proposals to
combine wireless voice and wireline
services into the ITSP category 58 or,
alternatively, to re-assign certain
Wireline Competition Bureau FTEs to
other fee categories, for regulatory fee
purposes. The Commission also sought
comment on adopting a new regulatory
fee category for CMRS, as a subcategory
of the ITSP regulatory fee category.59
The Commission has had an
opportunity to further review ITTA’s
proposals and, as we explain below, we
tentatively conclude that combining the
wireline and wireless categories,
reassigning Wireline Competition
Bureau FTEs to the Wireless
Telecommunications Bureau, and/or
adopting a new subcategory for CMRS
in the ITSP regulatory fee category are
not consistent with Commission orders
implementing section 9 of the
Communications Act.
23. The Commission has stated that
‘‘[g]iven the significant implications of
reassignment of FTEs in our fee
58 ITTA Comments at 4–9. See FY 2015 Report
and Order and FNPRM, 30 FCC Rcd at 10281–82,
paras. 31–34. ITTA had proposed this previously.
See, e.g., Assessment and Collection of Regulatory
Fees for Fiscal Year 2014, Notice of Proposed
Rulemaking, 29 FCC Rcd 6417, 6430–31, paras. 36–
39 (2014) (FY 2014 NPRM); Assessment and
Collection of Regulatory Fees for Fiscal Year 2013,
Notice of Proposed Rulemaking and Further Notice
of Proposed Rulemaking, 28 FCC Rcd 7790, 7796,
para. 12 (2013) (FY 2013 NPRM); Assessment and
Collection of Regulatory Fees for Fiscal Year 2008,
Report and Order and Further Notice of Proposed
Rulemaking, 24 FCC Rcd 6388, 6404–05, paras. 40–
41 (2008) (FY 2008 FNPRM).
59 FY 2015 Report and Order and FNPRM, 30 FCC
Rcd at 10282, para. 34. ITTA and ACA argue that
such change is supported by the fact that many
proceedings in the Wireline Competition Bureau
proceedings, and elsewhere, such as those
involving universal service, intercarrier
compensation, pole attachments, rural call
completion, number portability, 911 access, and
special access, affect wireless service providers.
ITTA Comments at 9–10; ACA Comments at 4–7.
CTIA opposes this proposal as arbitrary and
capricious as well as in violation of section 9 of the
Act. CTIA Comments at 2.
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mstockstill on DSK3G9T082PROD with PROPOSALS
calculation, we make changes to FTE
classifications only after performing
considerable analysis and finding the
clearest case for reassignment.’’ 60 In this
instance, ITTA contends that the
Wireline Competition Bureau FTEs
working on universal service issues and
other proceedings benefit categories of
service providers other than ITSPs,
particularly CMRS providers, and
therefore should be considered in
calculating the CMRS regulatory fee.61
Based on our own detailed analysis, as
well as the fact that the Wireless
Telecommunications Bureau assigns its
own FTEs to coordinate with the
Wireline Competition Bureau on
relevant wireless issues, we tentatively
conclude that a clear case for
reassignment of Wireline Competition
Bureau FTEs to the Wireless
Telecommunications Bureau is not
demonstrated in this instance. Our
analysis of the Wireline Competition
Bureau FTE work on wireline issues
that also affect the CMRS industry does
not support adopting a new subcategory
for CMRS in the ITSP regulatory fee
category—and thus assessing regulatory
fees on CMRS based on both Wireless
Telecommunications Bureau FTEs and
Wireline Competition Bureau FTEs, as
ITTA proposes.62 Further, ITTA’s
proposal to combine these regulatory fee
categories does not appear to address
the substantial differences between the
services in terms of regulatory oversight
by the two bureaus. Thus, at this
juncture, the Commission does not find
that the ‘‘clearest case of reassignment’’
exists based on the considerable
analysis we have conducted.
24. The Commission nevertheless
seeks comment on whether it would be
appropriate to allocate some proportion
of the direct FTEs that devote time to
universal service and/or numbering
issues as additional indirect FTEs.63
Based on staff estimates looking back
over a 6 to 12 month period, of the 165
FTEs in the Wireline Competition
Bureau, approximately seven FTEs work
on numbering issues and 52 FTEs work
on universal service issues
(approximately 16 on the high-cost
program, 13 on the schools and libraries
program, nine on the Lifeline program
for low income consumers (lifeline),
60 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.
61 ITTA Comments at 10.
62 See Letter from Micah M. Caldwell, ITTA, to
Marlene H. Dortch, Secretary, FCC (January 22,
2016).
63 Currently, indirect FTEs in various bureaus and
offices work on universal service issues.
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seven on the rural healthcare program,
and seven on universal service
contributions).64 Of the 92 FTEs in the
Wireless Telecommunications Bureau,
staff estimate that the equivalent of
approximately five FTEs work roughly
full time on universal service issues
(primarily the high-cost program). If we
were to reallocate, for regulatory fee
purposes, some proportion of the direct
FTEs, what should that proportion be?
Any proposals should demonstrate
policy or legal arguments supporting
reallocating some proportion of
numbering and/or USF FTEs as indirect.
In doing so, the Commission would
invite comment on whether some or all
of the FTEs that work on universal
service contributions, the schools and
libraries program, or the rural healthcare
program, should be reallocated as
indirect FTEs. Should the Commission
reallocate some proportion of the FTEs
from each bureau that work on the highcost program, given the participation of
non-wireline and wireless regulatees in
the Connect America Fund proceedings?
What proportion, if any, of the FTEs that
work on numbering issues and the
lifeline program should the Commission
reallocate given that a significant
number of regulatees benefiting from
those programs are not wireline
regulatees? Is there some proportion of
these FTEs whose ‘‘activities benefit the
Commission as a whole and are not
specifically focused on [core bureau]
regulatees’’? 65 Commenters’ proposals
for FTE reallocation should be
consistent with the section 9
requirement that regulatory fees are to
‘‘be derived by determining the full-time
equivalent number of employees
performing’’ Commission activities,
‘‘adjusted to take into account factors
that are reasonably related to the
benefits provided to the payer of the fee
by the Commission’s activities . . . .’’ 66
25. The Commission notes that
incorrect allocation of FTEs to a
particular core bureau may
disproportionately impact regulatees
given that indirect FTEs are allocated
proportionally based on the direct FTE
percentage attributable to a particular
core bureau. The Commission also notes
that any change in the allocation of
FTEs necessarily affects the fees paid by
payors in all other fee categories. We
seek comment on whether this proposal
is consistent with section 9 of the Act 67
64 These estimates can vary as discussed above
and do not represent an entire fiscal year.
65 FY 2013 NPRM, 28 FCC Rcd at 7803, para. 28.
66 47 U.S.C. 159(b)(1)(A). (Emphasis added).
67 Section 9 of the Communications Act requires
regulatory fees collected ‘‘to recover the costs of
. . . enforcement activities, policy and rulemaking
activities, user information services, and
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and with the Commission’s allocation
policies with respect to direct and
indirect FTEs.68 Commenters should
also address the Commission’s goal of
ensuring that regulatory fees are
administrable and sustainable.69
b. Earth Stations
26. In the FY 2014 NPRM, the
Commission sought comment on
increasing 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.70 In the FY 2014
regulatory fee proceeding, the
Commission increased the regulatory
fees paid by earth station licensees by
approximately 7.5 percent based on our
analysis and review of the record.71 In
the FY 2015 NPRM and Report and
Order, the Commission sought comment
on whether to raise the earth station
regulatory fees again.72 We concluded,
however, that the issue required further
analysis, in part because the thenpending part 25 proceeding
streamlining the satellite licensing rules
might affect the distribution of FTE
work.73 An Order was adopted in that
proceeding in December 2015, and
accordingly it is timely to again seek
comment on whether to increase the
regulatory fees paid by earth station
licensees.74 In this context, we seek
comment on EchoStar’s proposal to
international activities.’’ 47 U.S.C. 159(a). The
regulatory fees are to ‘‘be derived by determining
the full-time equivalent number of employees
performing’’ these activities, ‘‘adjusted to take into
account factors that are reasonably related to the
benefits provided to the payer of the fee by the
Commission’s activities . . . .’’ 47 U.S.C.
159(b)(1)(A).
68 FY 2013 Report and Order, 28 FCC Rcd at
12354–55, paras. 10–12 (adopting use of current
FTE data for purposes of regulatory fee calculations
as opposed to 1998 FTE data previously used); id.
at 12357–58, paras. 19–20 (‘‘It would be
inconsistent with section 9 to delay reallocating the
International Bureau FTEs, where the reallocation
is clearly warranted, while we engage in
painstaking examinations of less clear and more
factually complex situations in other bureaus. . . .
At the same time, however, we recognize that a
reexamination of how FTEs are allocated
throughout the Commission is an indispensable
part of comprehensively revising the Commission’s
regulatory fee program.’’); FY 2013 NPRM, 28 FCC
Rcd at 7793–95, 7796–99, 7803, paras. 7–10, 15–19,
29 (generally explaining prior FTE allocation
methodology and proposing methodology changes).
69 FY 2013 Report and Order, 28 FCC Rcd at
12354, para 9.
70 FY 2014 NPRM, 29 FCC Rcd at 6428, para. 29.
71 See FY 2014 Report and Order, 29 FCC Rcd at
10772–73, para. 12.
72 FY 2015 NPRM and Report and Order, 30 FCC
Rcd at 5360, para. 14.
73 FY 2015 NPRM and Report and Order, 30 FCC
Rcd at 5360, para. 14.
74 See Comprehensive Review of Licensing and
Operating Rules for Satellite Services, Second
Report and Order, 30 FCC Rcd 14713 (2015).
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adopt different regulatory fees for
different types of earth station
licenses.75
V. Procedural Matters
A. Payment of Regulatory Fees
1. Payments by Check Will Not Be
Accepted for Payment of Annual
Regulatory Fees
27. Pursuant to an Office of
Management and Budget (OMB)
directive,76 the Commission is moving
towards a paperless environment,
extending to disbursement and
collection of select federal government
payments and receipts.77 Last year the
Commission stopped accepting 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.78 This new paperless procedure
requires that all payments be made by
online Automated Clearing House
(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 affects all
payments of regulatory fees.79
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2. Revised Credit Card Transaction
Levels
28. Since June 1, 2015, 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 $24,999.99.80
75 See EchoStar July 20, 2015 ex parte, filed in
MD Docket No. 15–121.
76 Office of Management and Budget (OMB)
Memorandum M–10–06, Open Government
Directive, December 8, 2009; see also https://
www.whitehouse.gov/the-press-office/2011/06/13/
executive-order-13576-delivering-efficient-effectiveand-accountable-gov.
77 See U.S. Department of the Treasury, Open
Government Plan 2.1, September 2012.
78 FY 2015 Report and Order and FNPRM, 30 FCC
Rcd at 10282–83, para. 35. See 47 CFR 1.1158.
79 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.
80 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
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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, 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 2016 regulatory fee collection in Fact
Sheets, available at https://
www.fcc.gov/regfees.
3. De Minimis Regulatory Fees
29. Regulatees whose total FY 2016
annual regulatory fee liability, including
all categories of fees for which payment
is due, is $500 or less are exempt from
payment of FY 2016 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. Each regulatee will need to
reevaluate their total fee liability each
fiscal year to determine whether they
meet the de minimis exemption.
4. Standard Fee Calculations and
Payment Dates
30. 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, 2015 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, 2015.
For providers of Direct Broadcast
Satellite (DBS) service, regulatory fees
should be paid based on a subscriber
count on or about December 31, 2015.
In instances where a permit or license
is transferred or assigned after October
1, 2015, 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
dollar amount may not be split into two or more
transactions over multiple days by using one or
more cards.
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or before October 1, 2015. In instances
where a permit or license is transferred
or assigned after October 1, 2015,
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.81 For Responsible
Organizations (RespOrgs) that manage
Toll Free Numbers (TFN), regulatory
fees should be paid on all working,
assigned, and reserved toll free numbers
as well as toll free numbers in any other
status as defined in section 52.103 of the
Commission’s rules.82 The unit count
should be based on toll free numbers
managed by RespOrgs on or about
December 31, 2015.
• 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,
2015. The number of subscribers, units,
or telephone numbers on December 31,
2015 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,
2015, 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
3) to publicize our estimates of the
number of ‘‘small multi-year wireless’’
licenses that will be renewed or newly
obtained in FY 2016.
• 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, 2015.83
81 Audio bridging services are toll
teleconferencing services.
82 47 CFR 52.103.
83 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
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Regulatory fees also must be paid for
CARS licenses that were granted on or
before October 1, 2015. In instances
where a permit or license is transferred
or assigned after October 1, 2015,
responsibility for payment rests with the
holder of the permit or license as of the
fee due date.
• International Services: Regulatory
fees must be paid for (1) earth stations
and (2) geostationary orbit space
stations and non-geostationary orbit
satellite systems that were licensed and
operational on or before October 1,
2015. In instances where a permit or
license is transferred or assigned after
October 1, 2015, 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, 2015. In instances where a license is
transferred or assigned after October 1,
2015, responsibility for payment rests
with the holder of the license as of the
fee due date. For regulatory fee
purposes, the allocation in FY 2016 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 (IBCs) are to be paid by
facilities-based common carriers that
have active (used or leased)
international bearer circuits as of
December 31, 2015 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,
2015. Whether circuits are used
specifically for voice or data is not
relevant for purposes of determining
that they are active circuits.84 In
instances where a permit or license is
transferred or assigned after October 1,
2015, 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 2016 will
remain at 87.6 percent for submarine
cable and 12.4 percent for satellite/
terrestrial facilities.85
B. Commercial Mobile Radio Service
(CMRS) Cellular and Mobile Services
Assessments
31. 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’’).86 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).
32. 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.87 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.
33. 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, 2015), 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.
VI. Additional Tables
TABLE 3—CALCULATION OF FY 2016 REVENUE REQUIREMENTS AND PRO-RATA FEES
[Regulatory fees for the first seven categories below are collected by the Commission in advance to cover the term of the license and are
submitted at the time the application is filed]
mstockstill on DSK3G9T082PROD with PROPOSALS
Fee category
FY 2016 payment
units
PLMRS (Exclusive Use) ..
PLMRS (Shared use) Includes Rural Radio
Service (47 CFR part
22) ................................
Microwave ........................
21:06 Jun 02, 2016
FY 2015
revenue
estimate
Prorated FY
2016 revenue
requirement
Computed FY
2016 reg. fee
Rounded
FY 2016
reg. fee
Expected
FY 2016
revenue
2,500
10
546,000
625,938
25
25
625,000
31,100
12,500
10
10
3,100,000
2,520,000
3,114,665
3,129,688
10
25
10
25
3,110,000
3,125,000
December 2015, rather than on a count as of
December 31, 2015.
84 We encourage terrestrial and satellite service
providers to seek guidance from the International
Bureau’s Telecommunications and Analysis
Division to verify their particular IBC reporting
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processes to ensure that their calculation methods
comply with our rules.
85 We remind facilities-based common carriers to
review their reporting processes to ensure that they
accurately calculate and report IBCs.
86 See Assessment and Collection of Regulatory
Fees for Fiscal Year 2005, Report and Order and
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Order on Reconsideration, 20 FCC Rcd 12259,
12264, paras. 38–44 (2005).
87 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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TABLE 3—CALCULATION OF FY 2016 REVENUE REQUIREMENTS AND PRO-RATA FEES—Continued
[Regulatory fees for the first seven categories below are collected by the Commission in advance to cover the term of the license and are
submitted at the time the application is filed]
Fee category
mstockstill on DSK3G9T082PROD with PROPOSALS
Marine (Ship) ...................
Aviation (Aircraft) .............
Marine (Coast) .................
Aviation (Ground) .............
AM Class A4 ....................
AM Class B4 ....................
AM Class C4 ....................
AM Class D4 ....................
FM Classes A, B1 & C3 4
FM Classes B, C, C0, C1
& C2 4 ...........................
AM Construction Permits 1
FM Construction Permits1
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
Permits1 ........................
LPTV/Translators/Boosters/Class A TV .............
CARS Stations .................
Cable TV Systems, including IPTV .................
Direct Broadcast Satellite
(DBS) ............................
Interstate Telecommunication Service Providers
Toll Free Numbers ...........
CMRS Mobile Services
(Cellular/Public Mobile)
CMRS Messag. Services
BRS 2 ................................
LMDS ...............................
Per 64 kbps Int’l Bearer
Circuits Terrestrial
(Common) & Satellite
(Common & Non-Common) .............................
Submarine Cable Providers (see chart in Appendix B) 3 ....................
Earth Stations ..................
Space Stations (Geostationary) .....................
Space Stations (Non-Geostationary) .....................
****** Total Estimated
Revenue to be Collected .....................
FY 2016 payment
units
Years
FY 2015
revenue
estimate
Prorated FY
2016 revenue
requirement
Computed FY
2016 reg. fee
Rounded
FY 2016
reg. fee
Expected
FY 2016
revenue
6,900
4,700
480
1,100
66
1,535
889
1,492
3,122
10
10
10
10
1
1
1
1
1
945,000
420,000
171,500
180,000
281,125
3,499,125
1,244,600
4,103,000
8,613,000
1,036,553
470,705
192,288
220,330
314,451
3,893,459
1,409,299
4,607,579
9,652,908
15
10
40
20
4,764
2,536
1,585
3,088
3,092
15
10
40
20
4,775
2,525
1,575
3,100
3,100
1,035,000
470,000
192,000
220,000
315,150
3,875,875
1,400,175
4,625,200
9,678,200
3,139
15
179
128
139
139
181
1
1
1
1
1
1
1
10,607,625
17,110
136,500
200,025
6,274,550
5,918,400
5,000,125
11,826,839
10,366
215,122
224,336
8,446,540
6,358,412
5,532,175
3,768
691
1,202
1,753
60,766
45,744
30,565
3,775
690
1,200
1,750
60,775
45,750
30,575
11,849,725
10,350
214,800
224,000
8,447,725
6,359,250
5534,075
283
1
4,605,825
4,311,203
15,234
15,225
4,308,675
365
1
1,838,150
1,827,738
5,008
5,000
1,825,000
3
1
9,700
15,023
5,000
5,000
15,000
3,924
285
1
1
1,601,600
198,000
1,788,098
221,206
456
776
455
775
1,785,420
220,875
64,100,000
1
61,920,000
64,196,150
1.0015
1.00
64,100,000
34,000,000
1
4,080,000
9,193,770
.2704
.27
9,180,000
$38,400,000,000
36,500,000
1
1
128,428,000
4,380,000
141,908,544
4,752,018
0.0036955
0.1302
0.00370
0.13
142,080,000
4,745,000
360,000,000
2,300,000
890
395
1
1
1
1
60,180,000
208,000
565,150
238,125
72,108,276
184,000
645,250
286,375
0.2003
0.0800
725
725
0.20
0.080
725
725
72,000,000
184,000
645,250
286,375
22,500,000
1
657,000
770,617
.0342
.03
675,000
39.19
3,400
1
1
4,652,576
1,023,000
5,444,038
1,174,760
138,914
346
138,925
345
5,444,471
1,173,000
95
1
11,438,400
13,174,858
138,683
138,675
13,174,125
6
1
792,750
913,068
152,178
152,175
913,050
................................
............
340,593,961
384,196,740
........................
........................
384,066,766
****** Total Revenue
Requirement ..........
................................
............
339,844,000
384,012,497
........................
........................
384,012,497
Difference ..........
................................
............
749,961
184,243
........................
........................
54,269
Notes on Table 3.
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).
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3 The chart at the end of Table 4 lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted
from the adoption of Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Report and Order and Further Notice of Proposed
Rulemaking, 24 FCC Rcd 6388 (2008) and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24
FCC Rcd 4208 (2009).
4 The fee amounts listed in the column entitled ‘‘Rounded New FY 2016 Regulatory Fee’’ constitute a weighted average media regulatory fee
by class of service. The actual FY 2016 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4.
TABLE 4—PROPOSED REGULATORY FEES FY 2016 SCHEDULE OF REGULATORY FEES
[Regulatory fees for the first eight categories below are collected by the Commission in advance to cover the term of the license and are
submitted at the time the application is filed]
Annual
regulatory fee
(U.S. $’s)
Fee category
PLMRS (per license) (Exclusive Use) (47 CFR part 90) ..............................................................................................................
Microwave (per license) (47 CFR part 101) ..................................................................................................................................
Marine (Ship) (per station) (47 CFR part 80) ................................................................................................................................
Marine (Coast) (per license) (47 CFR part 80) .............................................................................................................................
Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) .....................................................................
PLMRS (Shared Use) (per license) (47 CFR part 90) ..................................................................................................................
Aviation (Aircraft) (per station) (47 CFR part 87) ..........................................................................................................................
Aviation (Ground) (per license) (47 CFR part 87) .........................................................................................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) .................................................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) ....................................................................................
Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27) Local Multipoint Distribution Service (per
call sign) (47 CFR, part 101) .....................................................................................................................................................
AM Radio Construction Permits ....................................................................................................................................................
FM Radio Construction Permits ....................................................................................................................................................
Digital TV (47 CFR part 73) VHF and UHF Commercial
Markets 1–10 ..........................................................................................................................................................................
Markets 11–25 ........................................................................................................................................................................
Markets 26–50 ........................................................................................................................................................................
Markets 51–100 ......................................................................................................................................................................
Remaining Markets .................................................................................................................................................................
Construction Permits ..............................................................................................................................................................
Satellite Television Stations (All Markets) .....................................................................................................................................
Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74) ...........................................................................
CARS (47 CFR part 78) ................................................................................................................................................................
Cable Television Systems (per subscriber) (47 CFR part 76), Including IPTV ............................................................................
Direct Broadcast Service (DBS) (per subscriber) (as defined by section 602(13) of the Act) .....................................................
Interstate Telecommunication Service Providers (per revenue dollar) .........................................................................................
Toll Free (per toll free subscriber) (47 CFR section 52.101 (f) of the rules) ................................................................................
Earth Stations (47 CFR part 25) ...................................................................................................................................................
Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational
station) (47 CFR part 100) .........................................................................................................................................................
Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) ...............................................................
International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) .........................................................................................
Submarine Cable Landing Licenses Fee (per cable system) .......................................................................................................
25
25
15
40
10
10
10
20
.20
.08
725
725
690
1,200
60,775
45,750
30,575
15,225
5,000
5,000
1,750
455
775
1.00
.27
.00370
.13
345
138,675
152,175
.03
See Table Below
FY 2016 SCHEDULE OF REGULATORY FEES
[Table 4 continued]
FY 2016 RADIO STATION REGULATORY FEES
mstockstill on DSK3G9T082PROD with PROPOSALS
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 .................................
3,000,001–6,000,00 .................................
>6,000,000 ...............................................
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$1,100
1,650
2,200
3,300
5,500
8,250
11,000
13,750
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Frm 00037
AM Class B
AM Class C
$795
1,200
1,600
2,375
3,975
5,950
7,950
9,950
Fmt 4702
Sfmt 4702
AM Class D
$690
1,025
1,375
2,075
3,450
5,175
6,900
8,625
E:\FR\FM\03JNP1.SGM
$760
1,150
1,525
2,275
3,800
5,700
7,600
9,500
03JNP1
FM Classes
A, B1 & C3
$1,200
1,800
2,400
3,600
6,000
9,000
12,000
15,000
FM Classes
B, C, C0, C1
& C2
$1,375
2,050
2,750
4,125
6,875
10,300
13,750
17,175
Federal Register / Vol. 81, No. 107 / Friday, June 3, 2016 / Proposed Rules
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FY 2016 SCHEDULE OF REGULATORY FEES
[International Bearer Circuits—Submarine Cable (Table 4 continued)]
Submarine Cable Systems
(capacity as of December 31, 2015)
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 5—Sources of Payment Unit
Estimates for FY 2016
In order to calculate individual
service fees for FY 2016, we adjusted FY
2015 payment units for each service to
more accurately reflect expected FY
2016 payment liabilities. We obtained
our updated estimates through a variety
of means. For example, we used
Commission licensee data bases, actual
prior year payment records and industry
and trade association projections when
available. The databases we consulted
include our Universal Licensing System
(ULS), International Bureau Filing
System (IBFS), Consolidated Database
System (CDBS) and Cable Operations
and Licensing System (COALS), as well
as reports generated within the
Commission such as the Wireless
Telecommunications Bureau’s
Numbering Resource Utilization
Forecast.
We sought verification for these
estimates from multiple sources and, in
all cases, we compared FY 2016
estimates with actual FY 2015 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
$8,675
17,375
34,725
69,475
138,925
payment units cannot yet be estimated
with sufficient accuracy. These include
an unknown number of waivers and/or
exemptions that may occur in FY 2016
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 2016 payment
units are based on FY 2015 actual
payment units, it does not necessarily
mean that our FY 2016 projection is
exactly the same number as in FY 2015.
We have either rounded the FY 2016
number or adjusted it slightly to account
for these variables.
Fee category
Sources of payment unit estimates
Land Mobile (All), Microwave, Marine (Ship & Coast), Aviation (Aircraft & Ground), Domestic Public
Fixed.
CMRS Cellular/Mobile Services ......
CMRS Messaging Services ............
AM/FM Radio Stations ....................
Digital TV Stations (Combined
VHF/UHF units).
AM/FM/TV Construction Permits ....
LPTV, Translators and Boosters,
Class A Television.
BRS (formerly MDS/MMDS) ...........
LMDS ..............................................
Cable Television Relay Service
(CARS) Stations.
Cable Television System Subscribers, Including IPTV Subscribers.
Interstate Telecommunication Service Providers.
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 2015 payment data.
Based on WTB reports, and FY 2015 payment data.
Based on CDBS data, adjusted for exemptions, and actual FY 2015 payment units.
Based on CDBS data, adjusted for exemptions, and actual FY 2015 payment units.
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Earth Stations .................................
Space Stations (GSOs & NGSOs)
International Bearer Circuits ...........
Submarine Cable Licenses .............
Based on CDBS data, adjusted for exemptions, and actual FY 2015 payment units.
Based on CDBS data, adjusted for exemptions, and actual FY 2015 payment units.
Based on WTB reports and actual FY 2015 payment units.
Based on WTB reports and actual FY 2015 payment units.
Based on data from Media Bureau’s COALS database and actual FY 2015 payment units.
Based on publicly available data sources for estimated subscriber counts and actual FY 2015 payment
units.
Based on FCC Form 499–Q data for the four quarters of calendar year 2015, the Wireline Competition Bureau projected the amount of calendar year 2015 revenue that will be reported on 2016 FCC Form 499–
A worksheets in April 2016.
Based on International Bureau (IB) licensing data and actual FY 2015 payment units.
Based on IB data reports and actual FY 2015 payment units.
Based on IB reports and submissions by licensees, adjusted as necessary.
Based on IB license information.
Table 6—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
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antennas, specific information on each
day tower, including field ratio, phase,
spacing, and orientation was retrieved,
as well as the theoretical pattern rootmean-square of the radiation in all
directions in the horizontal plane (RMS)
figure (milliVolt per meter (mV/m) @1
km) for the antenna system. The
standard, or augmented standard if
pertinent, horizontal plane radiation
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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
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retrieved soil conductivity data, the
distance to the principal community (5
mV/m) contour was predicted for each
of the 360 radials. The resulting
distance to principal community
contours were used to form a
geographical polygon. Population
counting was accomplished by
determining which 2010 block centroids
were contained in the polygon. (A block
centroid is the center point of a small
area containing population as computed
by the U.S. Census Bureau.) The sum of
the population figures for all enclosed
blocks represents the total population
for the predicted principal community
coverage area.
FM Stations
The greater of the horizontal or
vertical effective radiated power (ERP)
(kW) and respective height above
average terrain (HAAT) (m) combination
was used. Where the antenna height
above mean sea level (HAMSL) was
available, it was used in lieu of the
average HAAT figure to calculate
specific HAAT figures for each of 360
radials under study. Any available
directional pattern information was
applied as well, to produce a radialspecific ERP figure. The HAAT and ERP
figures were used in conjunction with
the Field Strength (50–50) propagation
curves specified in 47 CFR 73.313 of the
Commission’s rules to predict the
distance to the principal community (70
dBu (decibel above 1 microVolt per
meter) or 3.17 mV/m) contour for each
of the 360 radials. 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 7—FY 2015 Schedule of
Regulatory Fees
Regulatory fees for the first eight
categories below are collected by the
Commission in advance to cover the
term of the license and are submitted at
the time the application is filed.
Annual
regulatory fee
(U.S. $’s)
Fee category
PLMRS (per license) (Exclusive Use) (47 CFR part 90) ....................................................................................................................
Microwave (per license) (47 CFR part 101) ........................................................................................................................................
Marine (Ship) (per station) (47 CFR part 80) ......................................................................................................................................
Marine (Coast) (per license) (47 CFR part 80) ...................................................................................................................................
Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category) ...........................................................................
PLMRS (Shared Use) (per license) (47 CFR part 90) ........................................................................................................................
Aviation (Aircraft) (per station) (47 CFR part 87) ................................................................................................................................
Aviation (Ground) (per license) (47 CFR part 87) ...............................................................................................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90) .......................................................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90) ..........................................................................................
Broadband Radio Service (formerly MMDS/MDS) (per license) (47 CFR part 27), Local Multipoint Distribution Service (per call
sign) (47 CFR, part 101) ..................................................................................................................................................................
AM Radio Construction Permits ..........................................................................................................................................................
FM Radio Construction Permits ..........................................................................................................................................................
Digital TV (47 CFR part 73) VHF and UHF Commercial:
Markets 1–10 ................................................................................................................................................................................
Markets 11–25 ..............................................................................................................................................................................
Markets 26–50 ..............................................................................................................................................................................
Markets 51–100 ............................................................................................................................................................................
Remaining Markets .......................................................................................................................................................................
Construction Permits ....................................................................................................................................................................
Satellite Television Stations (All Markets) ...........................................................................................................................................
Low Power TV, Class A TV, TV/FM Translators & Boosters (47 CFR part 74) .................................................................................
CARS (47 CFR part 78) ......................................................................................................................................................................
Cable Television Systems (per subscriber) (47 CFR part 76), Including IPTV ..................................................................................
Direct Broadcast Service (DBS) (per subscriber) (as defined by section 602(13) of the Act) ...........................................................
Interstate Telecommunication Service Providers (per revenue dollar) ...............................................................................................
Toll Free (per toll free subscriber) (47 CFR section 52.101 (f) of the rules) ......................................................................................
Earth Stations (47 CFR part 25) .........................................................................................................................................................
Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes DBS Service (per operational station) (47 CFR part 100) ....................................................................................................................................................................
Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) .....................................................................
International Bearer Circuits—Terrestrial/Satellites (per 64KB circuit) ...............................................................................................
Submarine Cable Landing Licenses Fee (per cable system) .............................................................................................................
30
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
132,125
.03
See Table
Below.
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FY 2015 RADIO STATION REGULATORY FEES (TABLE 7 CONTINUED)
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 .................................
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$775
1,550
2,325
3,475
5,025
7,750
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AM Class B
AM Class C
$645
1,300
1,625
2,750
4,225
6,500
Fmt 4702
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AM Class D
$590
900
1,200
1,800
3,000
4,500
E:\FR\FM\03JNP1.SGM
$670
1,000
1,675
2,025
3,375
5,400
03JNP1
FM Classes
A, B1 & C3
$750
1,500
2,050
3,175
5,050
8,250
FM Classes
B, C, C0, C1
& C2
$925
1,625
3,000
3,925
5,775
9,250
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FY 2015 RADIO STATION REGULATORY FEES (TABLE 7 CONTINUED)—Continued
Population served
AM Class A
>3,000,000 ...............................................
9,300
AM Class B
AM Class C
7,800
5,700
INTERNATIONAL BEARER CIRCUITS— Programming Distributors (MVPDs),
SUBMARINE CABLE (TABLE 7 CON- receive oversight and regulation by
Media Bureau FTEs in, e.g., the
TINUED)
Submarine cable systems
(capacity as of December 31,
2014)
<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 ...............
Fee amount
$7,175
14,350
28,675
57,350
114,700
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Initial Regulatory Flexibility Analysis
1. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA),88 the Commission prepared this
Initial Regulatory Flexibility Analysis
(IRFA) of the possible significant
economic impact on small entities by
the policies and rules proposed in the
Notice of Proposed Rulemaking (NPRM).
Written comments are requested on this
IRFA. Comments must be identified as
responses to the IRFA and must be filed
by the deadline for comments on this
NPRM. The Commission will send a
copy of the NPRM, including the IRFA,
to the Chief Counsel for Advocacy of the
Small Business Administration (SBA).89
In addition, the NPRM and IRFA (or
summaries thereof) will be published in
the Federal Register.90
A. Need for, and Objectives of, the
Notice
2. The NPRM seeks comment
regarding adopting proposed regulatory
fees for Fiscal Year 2016. The proposed
regulatory fees are attached to the NPRM
in Table 4. The Commission is required
by Congress to adopt regulatory fees
each year ‘‘to recover the costs of . . .
enforcement activities, policy and
rulemaking activities, user information
services, and international activities.’’ 91
The NPRM proposes no new changes in
the Commission’s methodology, but
does seek comment on the following. (i)
As Direct Broadcast Satellites (DBS),
along with other Multichannel Video
88 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).
89 5 U.S.C. 603(a).
90 Id.
91 47 U.S.C. 159(a).
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implementation of the Commercial
Advertisement Loudness Mitigation Act
(CALM Act),92 the Twenty-First Century
Communications and Video
Accessibility Act of 2010 (CVAA),93 and
the Satellite Television Extension and
Localism Act (STELA) Reauthorization
Act of 2014 (STELAR), the NPRM
proposes an increase in the DBS fee rate
to 27 cents per DBS subscriber. (ii) As
radio stations expand in ever increasing
large markets, the population threshold
of ‘‘greater than 3,000,000’’ is no longer
an adequate threshold. As a result, the
NPRM proposes to raise the population
threshold of broadcasters to ‘‘greater
than 6,000,000’’ to reflect increases in
the population in major broadcast
markets. In addition, the Commission
also proposes to adjust the fee rates of
television stations to reflect a higher
proportional fee for large markets
compared to medium and smaller
markets. (iii) The Commission seeks
comment on how providers of
international bearer circuits should
count their circuits to maintain
consistency across all carriers to ensure
that all providers are calculating and
reporting IBCs in the same manner. (iv)
The Commission received a proposal
from ITTA to combine CMRS and ITSP
revenues together for the purpose of
determining a single regulatory fee rate
for the CMRS and ITSP regulatory fee
categories. After reviewing ITTA’s
proposal, the Commission tentatively
concludes not to combine wireless and
interstate revenues, add a subcategory
for CMRS in the ITSP fee category, or
reallocate Wireline Competition Bureau
FTEs to the Wireless
Telecommunications Bureau for the
purpose of calculating regulatory fees.
The Commission does, however, seek
comment on regulatory fee reform,
including the reallocation of direct
FTEs, including those FTEs working on
universal service and numbering issues.
92 See Implementation of the Commercial
Advertisement, Loudness Mitigation (CALM) Act,
Report and Order, 26 FCC Rcd 17222 (2011) (CALM
Act Report and Order).
93 Public Law Number 111–260, 124 Stat. 2751
(2010). See also Amendment of Twenty-First
Century Communications and Video Accessibility
Act of 2010, Public Law Number 111–265, 124 Stat.
2795 (2010) (making corrections to the CVAA); 47
CFR part 79.
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AM Class D
6,750
FM Classes
A, B1 & C3
10,500
FM Classes
B, C, C0, C1
& C2
12,025
(v) Finally, the Commission seeks
comment on increasing earth station
fees relative to space station fees.
B. Legal Basis
3. This action, including publication
of proposed rules, is authorized under
sections (4)(i) and (j), 9, and 303(r) of
the Communications Act of 1934, as
amended.94
C. Description and Estimate of the
Number of Small Entities to Which the
Rules Will Apply
4. The RFA directs agencies to
provide a description of, and where
feasible, an estimate of the number of
small entities that may be affected by
the proposed rules and policies, if
adopted.95 The RFA generally defines
the term ‘‘small entity’’ as having the
same meaning as the terms ‘‘small
business,’’ ‘‘small organization,’’ and
‘‘small governmental jurisdiction.’’ 96 In
addition, the term ‘‘small business’’ has
the same meaning as the term ‘‘small
business concern’’ under the Small
Business Act.97 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.98
5. Small Entities. Our actions, over
time, may affect small entities that are
not easily categorized at present. We
therefore describe here, at the outset,
three comprehensive small entity size
standards that could be directly affected
by the proposals under consideration.99
As of 2009, small businesses
represented 99.9 percent of the 27.5
million businesses in the United States,
according to the SBA.100 In addition, a
94 47
U.S.C. 154(i) and (j), 159, and 303(r).
U.S.C. 603(b)(3).
96 5 U.S.C. 601(6).
97 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.’’
98 15 U.S.C. 632.
99 See 5 U.S.C. 601(3)–(6).
100 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ available at https://www.sba.gov/
faqs/faqindex.cfm?arealD=24.
95 5
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‘‘small organization is generally any notfor-profit enterprise which is
independently owned and operated and
not dominant in its field.101
Nationwide, as of 2007, there were
approximately 1,621,215 small
organizations.102 In addition, the term
‘‘small governmental jurisdiction’’ is
defined generally as ‘‘governments of
cities, towns, townships, villages,
school districts, or special districts, with
a population of less than fifty
thousand.’’ 103 Census Bureau data for
2011 indicate that there were 90,056
local governmental jurisdictions in the
United States.104 We estimate that, of
this total, as many as 89,327 entities
may qualify as ‘‘small governmental
jurisdictions.’’ 105 Thus, we estimate
that most local government jurisdictions
are small. Finally, small entities may
include Responsible Organizations
(RespOrgs), which are entities chosen by
toll free subscribers to manage and
administer the appropriate records in
the toll free Service Management
System for the toll free subscriber.106
Although RespOrgs are often wireline
carriers, they can also include other
non-carrier entities. Please refer to each
group that is acting as a RespOrg
identified in this section of the IRFA.
From the data on the SMS/800 Web
site,107 we estimate that there are
approximately 459 RespOrgs, and
applying the size standard of 1500
employees is appropriate because most
RespOrgs at this time, are wirelinebased or wireless-based. We believe that
the majority of RespOrgs are small
entities under that size standard.108
6. Wired Telecommunications
Carriers. The U.S. Census Bureau
defines this industry as ‘‘establishments
101 5
U.S.C. 601(4).
Independent Sector, The New Nonprofit
Almanac and Desk Reference (2010).
103 5 U.S.C. 601(5).
104 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ available at http.www.sba.gov/
sites/default/files.FAQMarch201_O.pdf.
105 The 2011 Census Data for small governmental
organizations are not presented based on the size
of the population in each organization. As stated
above, there were 90,056 local governmental
organizations in 2011. As a basis for estimating how
many of these 90,056 local organizations were
small, we note that there were a total of 729 cities
and towns (incorporated places and civil divisions)
with populations over 50,000. See https://
factfinder.census.gov/faces/tableservices/jsf/pages/
productview.xhtml?src=bkmk. If we subtract the
729 cities and towns that exceed the 50,000
population threshold, we conclude that
approximately 789,237 are small.
106 47 CFR 52.101(b).
107 https://www.somos.com/. SMS/800, Inc. is
now Somos, Inc.
108 See, e.g., 13 CFR 121.101; NAICS Code
517110; NAICS Code 517210. For purposes of this
IRFA, because a substantial percentage of RespOrgs
are wireless-based or wireline-based, the standard
size applicable to these carriers is referenced.
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102 See
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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.’’ 109 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.110 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.111 Thus, under
this size standard, the majority of firms
in this industry can be considered
small.
7. Local Exchange Carriers (LECs).
Neither the Commission nor the SBA
has developed a size standard for small
businesses specifically applicable to
local exchange services. The closest
applicable NAICS Code category is for
Wired Telecommunications Carriers as
defined in paragraph 6 of this IRFA.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.112 According to census data
from 2007, there were 3,188
establishments that operated that year.
Of this total, 3,144 operated with fewer
than 1,000 employees.113 The
Commission estimates that most
providers of local exchange service are
small entities that may be affected by
the rules and policies proposed in the
NPRM.
8. Incumbent LECs. Neither the
Commission nor the SBA has developed
a small business size standard
specifically for incumbent local
exchange services. The closest
applicable NAICS Code category is
Wired Telecommunications Carriers, as
109 See https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
110 See 13 CFR 120.201, NAICS Code 517110.
111 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_51SSSZ5
&prodType= table.
112 13 CFR 121.201, NAICS code 517110.
113 See id.
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defined in paragraph 6 of this IRFA.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.114 According to census data
from 2007, 3,188 firms operated in that
year. Of this total, 3,144 operated with
fewer than 1,000 employees.115
According to the Industry Analysis
Branch of the Wireline Competition
Bureau, 1,307 carriers reported that they
were incumbent local exchange service
providers.116 Of this total of 1,307
incumbent local exchange service
providers, an estimated 1,006 operated
with 1,500 or fewer employees 117
Consequently, the Commission
estimates that most providers of
incumbent local exchange service are
small businesses that may be affected by
the rules and policies proposed in the
NPRM.
9. Competitive Local Exchange
Carriers (Competitive LECs),
Competitive Access Providers (CAPs),
Shared-Tenant Service Providers, and
Other Local Service Providers. Neither
the Commission nor the SBA has
developed a small business size
standard specifically for these service
providers. The appropriate NAICS Code
category is Wired Telecommunications
Carriers, as defined in paragraph 6 of
this IRFA. Under that size standard,
such a business is small if it has 1,500
or fewer employees.118 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.119 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 the Commission’s
Industry Analysis Division of the
Wireline Competition Bureau data,
1,442 carriers reported that they were
engaged in the provision of either
competitive local exchange services or
competitive access provider services.120
Of these 1,442 carriers, an estimated
1,256 have 1,500 or fewer employees. In
addition, 17 carriers have reported that
114 13
CFR 121.201, NAICS code 517110.
115 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_51SSSZ5
&prodType= table.
116 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).
117 See id.
118 13 CFR 121.201, NAICS code 517110.
119 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ5&prodType=%20table.
120 See Trends in Telephone Service, at Table 5.3.
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mstockstill on DSK3G9T082PROD with PROPOSALS
they are Shared-Tenant Service
Providers, and all 17 are estimated to
have 1,500 or fewer employees.121 In
addition, 72 carriers have reported that
they are Other Local Service
Providers.122 Of this total, 70 have 1,500
or fewer employees.123 Consequently,
the Commission estimates that most
providers of competitive local exchange
service, competitive access providers,
Shared-Tenant Service Providers, and
Other Local Service Providers are small
entities that may be affected by rules
adopted pursuant to the proposals in
this NPRM.
10. Interexchange Carriers (IXCs).
Neither the Commission nor the SBA
has developed a definition for
Interexchange Carriers. The closest
NAICS Code category is Wired
Telecommunications Carriers as defined
in paragraph 6 of this IRFA. The
applicable size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.124
According to Commission’s Industry
Analysis Division of the Wireline
Competition Bureau data, 359
companies reported that their primary
telecommunications service activity was
the provision of interexchange
services.125 Of this total, an estimated
317 have 1,500 or fewer employees and
42 have more than 1,500 employees.126
Consequently, the Commission
estimates that the majority of
interexchange service providers are
small entities that may be affected by
rules adopted pursuant to the NPRM.
11. Prepaid Calling Card Providers.
Neither the Commission nor the SBA
has developed a small business size
standard specifically for prepaid calling
card providers. The appropriate NAICS
Code category for prepaid calling card
providers is Telecommunications
Resellers. This industry comprises
establishments engaged in purchasing
access and network capacity from
owners and operators of
telecommunications networks and
reselling wired and wireless
telecommunications services (except
satellite) to businesses and households.
Mobile virtual networks operators
(MVNOs) are included in this
industry.127 Under the applicable SBA
size standard, such a business is small
if it has 1,500 or fewer employees.128
U.S. Census data for 2007 show that
121 Id.
122 Id.
123 Id.
124 13
CFR 121.201, NAICS code 517110.
Trends in Telephone Service, at Table 5.3.
125 See
126 Id.
127 https://www.census.gov/cgi-bin/ssd/naics/
naicsrch.
128 13 CFR 121.201, NAICS code 517911.
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1,523 firms provided resale services
during that year. Of that number, 1,522
operated with fewer than 1,000
employees.129 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’s Industry Analysis
Division of the Wireline Competition
Bureau data, 193 carriers have reported
that they are engaged in the provision of
prepaid calling cards.130 All 193 carriers
have 1,500 or fewer employees.131
Consequently, the Commission
estimates that the majority of prepaid
calling card providers are small entities
that may be affected by rules adopted
pursuant to the NPRM.
12. Local Resellers. The SBA has
developed a small business size
standard for the category of
Telecommunications Resellers. Under
that size standard, such a business is
small if it has 1,500 or fewer
employees.132 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.133 Under this category
and the associated small business size
standard, the majority of these local
resellers can be considered small
entities. According to Commission’s
Industry Analysis Division of the
Wireline Competition Bureau data, 213
carriers have reported that they are
engaged in the provision of local resale
services.134 Of this total, an estimated
211 have 1,500 or fewer employees.135
Consequently, the Commission
estimates that the majority of local
resellers are small entities that may be
affected by rules adopted pursuant to
the proposals in this NPRM.
13. Toll Resellers. The Commission
has not developed a definition for Toll
Resellers. The closest NAICS Code
Category is Telecommunications
Resellers, and the SBA has developed a
small business size standard for the
category of Telecommunications
Resellers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees.136 Census data for
2007 show that 1,523 firms provided
resale services during that year. Of that
number, 1,522 operated with fewer than
129 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ5&prodType=table.
130 See Trends in Telephone Service, at Table 5.3.
131 Id.
132 13 CFR 121.201, NAICS code 517911.
133 Id.
134 See Trends in Telephone Service, at Table 5.3.
135 Id.
136 13 CFR 121.201, NAICS code 517911.
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35695
1,000 employees.137 Thus, under this
category and the associated small
business size standard, the majority of
these resellers can be considered small
entities. According to Commission’s
Industry Analysis Division of the
Wireline Competition Bureau data, 881
carriers have reported that they are
engaged in the provision of toll resale
services.138 Of this total, an estimated
857 have 1,500 or fewer employees.139
Consequently, the Commission
estimates that the majority of toll
resellers are small entities that may be
affected by our proposals in the NPRM.
14. Other Toll Carriers. Neither the
Commission nor the SBA has developed
a size standard for small businesses
specifically applicable to Other Toll
Carriers. This category includes toll
carriers that do not fall within the
categories of interexchange carriers,
operator service providers, prepaid
calling card providers, satellite service
carriers, or toll resellers. The closest
applicable NAICS Code category is for
Wired Telecommunications Carriers, as
defined in paragraph 6 of this IRFA.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.140 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.141 Thus, under this category
and the associated small business size
standard, the majority of Other Toll
Carriers can be considered small.
According to Commission’s Industry
Analysis Division of the Wireline
Competition Bureau data, 284
companies reported that their primary
telecommunications service activity was
the provision of other toll carriage.142 Of
these, an estimated 279 have 1,500 or
fewer employees.143 Consequently, the
Commission estimates that most Other
Toll Carriers are small entities that may
be affected by the rules adopted
pursuant to the NPRM.
15. Wireless Telecommunications
Carriers (except Satellite). This industry
comprises establishments engaged in
operating and maintaining switching
and transmission facilities to provide
communications via the airwaves, such
as cellular services, paging services,
wireless Internet access, and wireless
video services.144 The appropriate size
137 Id.
138 Trends
in Telephone Service, at Table 5.3.
139 Id.
140 13
CFR 121.201, NAICS code 517110.
141 Id.
142
Trends in Telephone Service, at Table 5.3.
143 Id.
144 NAICS Code 517210. See https://
www.census.gov/cgi-bin/ssd/naics/naiscsrch.
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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’s Industry Analysis
Division of the Wireline Competition
Bureau 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.145 Of this total,
an estimated 261 have 1,500 or fewer
employees.146 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
and may be affected by rules adopted
pursuant to this NPRM.
16. Television Broadcasting. This
Economic Census category ‘‘comprises
establishments primarily engaged in
broadcasting images together with
sound. These establishments operate
television broadcasting studios and
facilities for the programming and
transmission of programs to the
public.’’ 147 The SBA has created the
following small business size standard
for Television Broadcasting firms: those
having $14 million or less in annual
receipts.148 The Commission has
estimated the number of licensed
commercial television stations to be
1,387.149 In addition, according to
Commission staff review of the BIA
Advisory Services, LLC’s Media Access
Pro Television Database on March 28,
2012, about 950 of an estimated 1,300
commercial television stations (or
approximately 73 percent) had revenues
of $14 million or less.150 We therefore
estimate that the majority of commercial
145
Trends in Telephone Service, at Table 5.3.
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146 Id.
147 U.S. Census Bureau, 2007 NAICS Definitions,
‘‘515120 Television Broadcasting’’ (partial
definition); https://www.census.gov/naics/2007/def/
ND515120.HTM#N515120.
148 13 CFR 121.201, NAICS code 515120 (updated
for inflation in 2010).
149 See FCC News Release, ‘‘Broadcast Station
Totals as of December 31, 2011,’’ dated January 6,
2012; https://transition.fcc.gov/Daily_Releases/
Daily_Business/2012/db0106/DOC-311837A1.pdf.
150 We recognize that BIA’s estimate differs
slightly from the FCC total given supra.
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television broadcasters are small
entities.
17. We note, however, that in
assessing whether a business concern
qualifies as small under the above
definition, business (control)
affiliations 151 must be included. Our
estimate, therefore, likely overstates the
number of small entities that might be
affected by our action, because the
revenue figure on which it is based does
not include or aggregate revenues from
affiliated companies. In addition, an
element of the definition of ‘‘small
business’’ is that the entity not be
dominant in its field of operation. We
are unable at this time to define or
quantify the criteria that would
establish whether a specific television
station is dominant in its field of
operation. Accordingly, the estimate of
small businesses to which rules may
apply does not exclude any television
station from the definition of a small
business on this basis and is therefore
possibly over-inclusive to that extent.
18. In addition, the Commission has
estimated the number of licensed
noncommercial educational (NCE)
television stations to be 396.152 These
stations are non-profit, and therefore
considered to be small entities.153 There
are also 2,528 low power television
stations, including Class A stations
(LPTV).154 Given the nature of these
services, we will presume that all LPTV
licensees qualify as small entities under
the above SBA small business size
standard.
19. Radio Broadcasting. This
Economic Census category ‘‘comprises
establishments primarily engaged in
broadcasting aural programs by radio to
the public. Programming may originate
in their own studio, from an affiliated
network, or from external sources. 155
The SBA has established a small
business size standard for this category,
which is: Such firms having $7 million
or less in annual receipts.156 According
to Commission staff review of BIA
Advisory Services, LLC’s Media Access
151 ‘‘[Business concerns] are affiliates of each
other when one concern controls or has the power
to control the other or a third party or parties
controls or has to power to control both.’’ 13 CFR
21.103(a)(1).
152 See FCC News Release, ‘‘Broadcast Station
Totals as of December 31, 2011,’’ dated January 6,
2012; https://transition.fcc.gov/Daily_Releases/
Daily_Business/2012/db0106/DOC-311837A1.pdf.
153 See generally 5 U.S.C. 601(4), (6).
154 See FCC News Release, ‘‘Broadcast Station
Totals as of December 31, 2011,’’ dated January 6,
2012; https://transition.fcc.gov/Daily_Releases/
Daily_Business/2012/db0106/DOC-311837A1.pdf.
155 U.S. Census Bureau, 2007 NAICS Definitions,
‘‘515112 Radio Stations’’; https://www.census.gov/
naics/2007/def/ND515112.HTM#N515112.
156 13 CFR 121.201, NAICS code 515112 (updated
for inflation in 2010).
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Pro Radio Database on March 28, 2012,
about 10,759 (97%) of 11,102
commercial radio stations had revenues
of $7 million or less. Therefore, the
majority of such entities are small
entities.
20. We note, however, that in
assessing whether a business concern
qualifies as small under the above size
standard, business affiliations must be
included.157 In addition, to be
determined to be a ‘‘small business,’’ the
entity may not be dominant in its field
of operation.158 We note that it is
difficult at times to assess these criteria
in the context of media entities, and our
estimate of small businesses may
therefore be over-inclusive.
21. Cable Television and other
Subscription Programming.159 Since
2007, these services have been defined
within the broad economic census
category of Wired Telecommunications
Carriers. That category is defined as
follows: ‘‘This industry comprises
establishments primarily engaged in
operating and/or providing access to
157 ‘‘Concerns and entities are affiliates of each
other when one controls or has the power to control
the other, or a third party or parties controls or has
the power to control both. It does not matter
whether control is exercised, so long as the power
to control exists.’’ 13 CFR 121.103(a)(1) (an SBA
regulation).
158 13 CFR 121.102(b) (an SBA regulation).
159 In 2014, ‘‘Cable and Other Subscription
Programming,’’ NAICS Code 515210, replaced a
prior category, now obsolete, which was called
‘‘Cable and Other Program Distribution.’’ Cable and
Other Program Distribution, prior to 2014, were
placed under NAICS Code 517110, Wired
Telecommunications Carriers. Wired
Telecommunications Carriers is still a current and
valid NAICS Code Category. Because of the
similarity between ‘‘Cable and Other Subscription
Programming’’ and ‘‘Cable and other Program
Distribution,’’ we will, in this proceeding, continue
to use Wired Telecommunications Carrier data
based on the U.S. Census. The alternative of using
data gathered under Cable and Other Subscription
Programming (NAICS Code 515210) is unavailable
to us for two reasons. First, the size standard
established by the SBA for Cable and Other
Subscription Programming is annual receipts of
$38.5 million or less. Thus to use the annual
receipts size standard would require the
Commission either to switch from existing
employee based size standard of 1,500 employees
or less for Wired Telecommunications Carriers, or
else would require the use of two size standards.
No official approval of either option has been
granted by the Commission as of the time of the
release of the Notice. 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 operatin6 in this category in 2012.
Hence the data do not provide any basis for
determining, for either year, how many businesses
were small because they had annual receipts of
$38.5 million or less. https://factfinder.census.gov/
faces/tableservices/jsf/pages/productview.xhtml
?pid=ECN_2012_US_51I2&prodType=table.
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transmission facilities and infrastructure
that they own and/or lease for the
transmission of voice, data, text, sound,
and video using wired
telecommunications networks.
Transmission facilities may be based on
a single technology or a combination of
technologies.’’ 160 The SBA has
developed a small business size
standard for this category, which is: all
such firms having 1,500 or fewer
employees.161 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.162
Thus under this size standard, the
majority of firms offering cable and
other program distribution services can
be considered small and may be affected
by rules adopted pursuant to the NPRM.
22. 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.163
Industry data indicate that there are
currently 4,600 active cable systems in
the United States.164 Of this total, all but
ten cable operators nationwide are small
under the 400,000-subscriber size
standard.165 In addition, under the
Commission’s rate regulation rules, a
‘‘small system’’ is a cable system serving
15,000 or fewer subscribers.166 Current
Commission records show 4,600 cable
systems nationwide.167 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.168 Thus, under this
standard as well, the Commission
estimates that most cable systems are
small entities.
23. Cable System Operators (Telecom
Act Standard). The Communications
Act of 1934, as amended, also contains
a size standard for small cable system
160 U.S. Census Bureau, 2007 NAICS Definitions,
‘‘517110 Wired Telecommunications Carriers’’
(partial definition), (full definition stated in para. 6
of this IRFA) available at https://www.census.gov/
cgi-bin/sssd/naics/naicsrch.
161 13 CFR 121.201, NAICS code 517110.
162 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2007_US-51SSSZ5&prodType=Table.
163 47 CFR 76.901(e).
164 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.
165 See SNL KAGAN at www.snl.com/
interactiveX/top cableMSOs aspx?period2015Q1&
sortcol=subscribersbasic&sortorder=desc.
166 47 CFR 76.901(c).
167 See footnote 2, supra.
168 August 5, 2015 report from the Media Bureau
based on its research in COALS. See www.fcc.gov/
coals.
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operators, which is ‘‘a cable operator
that, directly or through an affiliate,
serves in the aggregate fewer than 1
percent of all subscribers in the United
States and is not affiliated with any
entity or entities whose gross annual
revenues in the aggregate exceed
$250,000,000 are approximately
52,403,705 cable video subscribers in
the United States today.169 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.170
Based on available data, we find that all
but nine incumbent cable operators are
small entities under this size
standard.171 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.172 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.
24. Direct Broadcast Satellite (DBS)
Service. DBS Service is a nationally
distributed subscription service that
delivers video and audio programming
via satellite to a small parabolic dish
antenna at the subscriber’s location.
DBS is now included in SBA’s
economic census category ‘‘Wired
Telecommunications Carriers.’’ The
Wired Telecommunications Carriers
industry comprises establishments
primarily engaged in operating and/or
providing access to transmission
facilities and infrastructure that they
own and/or lease for the transmission of
voice, data, text, sound, and video using
wired telecommunications networks.
Transmission facilities may be based on
a single technology or 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
169 See SNL KAGAN at www.snl.com/
interactivex/MultichannelIndustry
Benchmarks.aspx.
170 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
171 See SNL KAGAN at www.snl.com/
Interactivex/TopCableMSOs.aspx.
172 The Commission does receive such
information on a case-by-case basis if a cable
operator appeals a local franchise authority’s
finding that the operator does not qualify as a small
cable operator pursuant to section 76.901(f) of the
Commission’s rules. See 47 CFR 76.901(f).
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35697
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.173
The SBA determines that a wireline
business is small if it has fewer than
1500 employees.174 Census data for
2007 indicate that 3,188 wireline
companies were operational during that
year. Of that number, 3,144 operated
with fewer than 1,000 employees.175
Based on that data, we conclude that the
majority of wireline firms are small
under the applicable standard.
However, currently only two entities
provide DBS service, which requires a
great deal of capital for operation:
DIRECTV (now owned by AT&T) and
DISH Network.176 DIRECTV and DISH
Network each report annual revenues
that are in excess of the threshold for a
small business. Accordingly, we must
conclude that internally developed FCC
data are persuasive that in general DBS
service is provided only by large firms.
25. 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.177 The SBA has developed a
small business size standard for ‘‘All
Other Telecommunications,’’ which
consists of all such firms with gross
173 https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
174 NAICs CODE 517110; 13.CFR 121.201.
175 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2007_US_
51SSSZ5&prodType=table.
176 See 15th Annual Video Competition Report,
28 FCC Rcd at 1057, Section 27. As of June 2012,
DIRECTV is the largest DBS operator and the
second largest MVPD in the United States, serving
19.9 million subscribers. DISH Network is the
second largest DBS operator and the third largest
MVPD operator, serving 14 million subscribers. Id.
at 10507, 10546, section 27, 110–11.
177 https://www.census.gov/cgi-bin/ssssd/naics/
naicsrch.
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annual receipts of $32.5 million or
less.178 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.179 Thus, a majority of ‘‘All
Other Telecommunications’’ firms
potentially affected by the proposals in
the NPRM can be considered small.
D. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
26. This NPRM does not propose any
changes to the Commission’s current
information collection, reporting,
recordkeeping, or compliance
requirements.
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E. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
27. 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.180
28. This NPRM seeks comment on the
Commission’s regulatory fee collection
for Fiscal Year 2016, as required by
Congress each year. Specifically, we ask
for comments each year in the
Regulatory Flexibility Analysis on how
to minimize adverse economic impact,
imposed by our proposed rules, on
small entities. The regulatory fees
proposed in this NPRM do not include
any new fee categories. However, the
proposal in FY 2016 to revise the
broadcasters’ fee grid to include a
threshold ‘‘greater than 6,000,000’’, and
a change in the television fee amounts
so that large markets pay a higher
proportional fee than small and
medium-sized markets, will provide
some relief to small broadcast and
television entities. The increase in the
de minimis amount to $500
implemented in FY 2015 has already
178 13
CFR 121.201; NAICs Code 517919.
179 https://factfinder.census.gov/faces/
tableservices.jasf/pages/
productview.xhtml?pid+ECN_2007_
US.51SSSZ4&prodType=table.
180 5 U.S.C. 603(c)(1)–(c)(4).
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provided financial relief to smaller
entities.
F. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rules
29. None.
VII. Ordering Clauses
30. Accordingly, it is ordered that,
pursuant to sections 4(i) and (j), 9, and
303(r) of the Communications Act of
1934, as amended, 47 U.S.C. 154(i),
154(j), 159, and 303(r), this Notice of
Proposed Rulemaking is hereby
adopted.
31. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Notice of Proposed Rulemaking,
including the Initial Regulatory
Flexibility Analysis, to the Chief
Counsel for Advocacy of the U.S. Small
Business Administration.
(Alces alces andersoni) as an
endangered or threatened distinct
population segment (DPS), presents
substantial scientific or commercial
information indicating that the
petitioned action may be warranted.
Therefore, with the publication of this
document, we are initiating a review of
the status of this population to
determine if the petitioned action is
warranted. To ensure that this status
review is comprehensive, we are
requesting scientific and commercial
data and other information regarding
this subspecies. Based on the status
review, we will issue a 12-month
finding on the petition, which will
address whether the petitioned action is
warranted, as provided in section
4(b)(3)(B) of the Act.
[FR Doc. 2016–13087 Filed 6–2–16; 8:45 am]
To allow us adequate time to
conduct the status review, we request
that we receive information no later
than August 2, 2016. Information
submitted electronically using the
Federal eRulemaking Portal (see
ADDRESSES, below) must be received by
11:59 p.m. Eastern Time on the closing
date.
BILLING CODE 6712–01–P
ADDRESSES:
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
50 CFR Part 17
[Docket Nos. FWS–R3–ES–2016–0061;
FWS–R2–ES–2016–0062] 4500030115
Endangered and Threatened Wildlife
and Plants; 90-Day Findings on Two
Petitions
Fish and Wildlife Service,
Interior.
ACTION: Notice of petition findings and
initiation of status review.
AGENCY:
We, the U.S. Fish and
Wildlife Service (Service), announce 90day findings on two petitions to list or
delist wildlife under the Endangered
Species Act of 1973, as amended (Act).
Based on our review, we find that one
petition, which requests that we remove
the golden-cheeked warbler from the
Federal List of Endangered and
Threatened Wildlife, does not present
substantial scientific or commercial
information indicating that the
petitioned action may be warranted, and
we are not initiating a status review in
response to this petition. We refer to
this as a ‘‘not-substantial petition
finding.’’ We also find that the other
petition, which requests that we list the
U.S. population of northwestern moose
SUMMARY:
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DATES:
Not-substantial petition
finding: The not-substantial petition
finding for the golden-cheeked warbler
is available on https://
www.regulations.gov under the docket
number FWS–R2–ES–2016–0062.
Supporting information in preparing
this finding is available for public
inspection, by appointment, during
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appropriate person, as specified under
FOR FURTHER INFORMATION CONTACT.
Status review: You may submit
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andersoni) by one of the following
methods:
(1) Electronically: Go to the Federal
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E:\FR\FM\03JNP1.SGM
03JNP1
Agencies
[Federal Register Volume 81, Number 107 (Friday, June 3, 2016)]
[Proposed Rules]
[Pages 35680-35698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13087]
=======================================================================
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket Nos. 16-166; FCC 16-61]
Assessment and Collection of Regulatory Fees for Fiscal Year 2016
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: In this document, the Federal Communications Commission
(Commission) will revise its Schedule of Regulatory Fees in order to
recover an
[[Page 35681]]
amount of $384,012,497 that Congress has required the Commission to
collect for fiscal year 2016. 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: Submit comments on or before June 20, 2016, and reply comments
on or before July 5, 2016.
ADDRESSES: You may submit comments, identified by MD Docket No. 16-166,
by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web site: https://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: FCC504@fcc.gov or phone: 202-418-
0530 or TTY: 202-418-0432.
Email: ecfs@fcc.gov. Include MD Docket No. 16-166 in the
subject line of the message.
Mail: Commercial overnight mail (other than U.S. Postal
Service Express Mail, and Priority Mail, must be sent to 9300 East
Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th
Street SW., Washington, DC 20554.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking (NPRM), FCC 16-61, MD Docket No. 16-166, adopted
on May 18, 2016, and released on May 19, 2016. The full text of this
document is available for inspection and copying during normal business
hours in the FCC Reference Center, 445 12th Street SW., Room CY-A257,
Portals II, Washington, DC 20554, and may also be purchased from the
Commission's copy contractor, BCPI, Inc., Portals II, 445 12th Street
SW., Room CY-B402, Washington, DC 20554. Customers may contact BCPI,
Inc. via their Web site, https://www.bcpi.com, or call 1-800-378-3160.
This document is available in alternative formats (computer diskette,
large print, audio record, and braille). Persons with disabilities who
need documents in these formats may contact the FCC by email:
FCC504@fcc.gov or phone: 202-418-0530 or TTY: 202-418-0432.
I. Procedural Matters
A. Ex Parte Rules Permit-But-Disclose Proceeding
1. This Notice of Proposed Rulemaking (FY 2016 NPRM) shall be
treated as a ``permit-but-disclose'' proceeding in accordance with the
Commission's ex parte rules. Persons making ex parte presentations must
file a copy of any written presentation or a memorandum summarizing any
oral presentation within two business days after the presentation
(unless a different deadline applicable to the Sunshine period
applies). Persons making oral ex parte presentations are reminded that
memoranda summarizing the presentation must list all persons attending
or otherwise participating in the meeting at which the ex parte
presentation was made, and summarize all data presented and arguments
made during the presentation. If the presentation consisted in whole or
in part of the presentation of data or arguments already reflected in
the presenter's written comments, memoranda, or other filings in the
proceeding, the presenter may provide citations to such data or
arguments in his or her prior comments, memoranda, or other filings
(specifying the relevant page and/or paragraph numbers where such data
or arguments can be found) in lieu of summarizing them in the
memorandum. Documents shown or given to Commission staff during ex
parte meetings are deemed to be written ex parte presentations and must
be filed consistent with section 1.1206(b). In proceedings governed by
section 1.49(f) or for which the Commission has made available a method
of electronic filing, written ex parte presentations and memoranda
summarizing oral ex parte presentations, and all attachments thereto,
must be filed through the electronic comment filing system available
for that proceeding, and must be filed in their native format (e.g.,
.doc, .xml, .ppt, searchable .pdf). Participants in this proceeding
should familiarize themselves with the Commission's ex parte rules.
B. Comment Filing Procedures
2. Comments and Replies. Pursuant to sections 1.415 and 1.419 of
the Commission's rules, 47 CFR 1.415, 1.419, interested parties may
file comments and reply comments on or before the dates indicated on
the first page of this document. Comments may be filed using: (1) The
Commission's Electronic Comment Filing System (ECFS), (2) the Federal
Government's eRulemaking Portal, or (3) by filing paper copies. See
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121
(1998).
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: https://fjallfoss.fcc.gov/ecfs2/ or the Federal eRulemaking Portal: https://www.regulations.gov.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. If more than one
docket or rulemaking number appears in the caption of this proceeding,
filers must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail. All filings must be addressed to the Commission's Secretary,
Office of the Secretary, Federal Communications Commission.
[ssquf] All hand-delivered or messenger-delivered paper filings for
the Commission's Secretary must be delivered to FCC Headquarters at 445
12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours are
8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with
rubber bands or fasteners. Any envelopes must be disposed of before
entering the building.
[ssquf] Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
[ssquf] U.S. Postal Service first-class, Express, and Priority mail
must be addressed to 445 12th Street SW., Washington, DC 20554.
People with Disabilities: To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to fcc504@fcc.gov or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
3. Availability of Documents. Comments, reply comments, and ex
parte submissions will be available for public inspection during
regular business hours in the FCC Reference Center, Federal
Communications Commission, 445 12th Street SW., CY-A257, Washington, DC
20554. These documents will also be available free
[[Page 35682]]
online, via ECFS. Documents will be available electronically in ASCII,
Word, and/or Adobe Acrobat.
4. Accessibility Information. To request information in accessible
formats (computer diskettes, large print, audio recording, and
Braille), send an email to fcc504@fcc.gov or call the Commission's
Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice),
(202) 418-0432 (TTY). This document can also be downloaded in Word and
Portable Document Format (``PDF'') at: https://www.fcc.gov.
C. Initial Regulatory Flexibility Analysis
5. An initial regulatory flexibility analysis (IRFA) is contained
in this document. Comments to the IRFA must be identified as responses
to the IRFA and filed by the deadlines for comments on this NPRM. The
Commission will send a copy of this NPRM, including the IRFA, to the
Chief Counsel for Advocacy of the Small Business Administration.
D. Initial Paperwork Reduction Act
6. 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).
II. Introduction
7. In this Notice of Proposed Rulemaking (NPRM), we seek comment on
the Federal Communications Commission's (FCC's or Commission's)
proposed regulatory fees for fiscal year (FY) 2016. Specifically, the
Commission proposes to collect $384,012,497.00 in regulatory fees as
detailed in the proposed fee schedule attached to this NPRM in Table 4.
As explained in this NPRM, the proposed fee schedule includes
adjustments to the table used to assess regulatory fees on
broadcasters.
III. Background
8. The Commission is required by Congress to assess regulatory fees
each year in an amount that can reasonably be expected to equal the
amount of its appropriation.\1\ Regulatory fees are mandated by
Congress and are collected ``to recover the costs of . . . enforcement
activities, policy and rulemaking activities, user information
services, and international activities.'' \2\ Regulatory fees are to
``be derived by determining the full-time equivalent number of
employees performing'' these activities, ``adjusted to take into
account factors that are reasonably related to the benefits provided to
the payer of the fee by the Commission's activities . . . .'' \3\
Regulatory fees recover direct costs, such as salary and expenses;
indirect costs, such as overhead functions; and support costs, such as
rent, utilities, or equipment.\4\ Regulatory fees also cover the costs
incurred in regulating entities that are statutorily exempt from paying
regulatory fees,\5\ entities whose regulatory fees are waived,\6\ and
entities that provide services for which we do not assess regulatory
fees.
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\1\ 47 U.S.C. 159(b)(1)(B). The Commission collected $7.67
million above the required regulatory fee target goal in FY 2015,
which the Commission deposited into the U.S. Treasury. The
cumulative over collection is $98.367 million as of September 30,
2015.
\2\ 47 U.S.C. 159(a).
\3\ 47 U.S.C. 159(b)(1)(A).
\4\ Assessment and Collection of Regulatory Fees for Fiscal Year
2004, Report and Order, 19 FCC Rcd 11662, 11666, para. 11 (2004) (FY
2004 Report and Order).
\5\ For example, governmental and nonprofit entities are exempt
from regulatory fees under section 9(h) of the Communications Act of
1934, as amended (Communications Act or Act). 47 U.S.C. 159(h); 47
CFR 1.1162.
\6\ 47 CFR 1.1166.
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9. Congress sets the amount the Commission must collect each year
in the Commission's fiscal year appropriations. Section 9(a)(2) of the
Communications Act, as amended (Communications Act or Act) requires the
Commission to collect fees sufficient to offset the amount
appropriated.\7\ To calculate regulatory fees, the Commission allocates
the total collection target across all regulatory fee categories. The
allocation of fees to fee categories is based on the Commission's
calculation of FTEs \8\ in each regulatory fee category. FTEs are
classified as ``direct'' if the employee is in one of the four ``core''
bureaus; otherwise, that employee is considered an ``indirect'' FTE.\9\
The total FTEs for each fee category includes the direct FTEs
associated with that category, plus a proportional allocation of
indirect FTEs. The Commission then allocates the total amount to be
collected among the various regulatory fee categories. Each regulatee
within a fee category pays its proportionate share based on an
objective measure, e.g., revenues, number of subscribers, or
licenses.\10\
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\7\ 47 U.S.C. 159(a)(2).
\8\ 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.
\9\ The core bureaus are the Wireline Competition Bureau (165
FTEs), Wireless Telecommunications Bureau (92 FTEs), Media Bureau
(151 FTEs), and part of the International Bureau (24 FTEs), totaling
432 direct FTEs. The indirect FTEs are the employees from the
following bureaus and offices: Enforcement Bureau, Consumer &
Governmental Affairs Bureau, Public Safety and Homeland Security
Bureau, part of the International 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 1,046 indirect FTEs. These totals are as of Oct. 1, 2015
and exclude auctions funded FTEs.
\10\ See Procedures for Assessment and Collection of Regulatory
Fees, Notice of Proposed Rulemaking, 27 FCC Rcd 8458, 8461-62,
paras. 8-11 (2012) (FY 2012 NPRM).
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10. The Commission continues to improve the regulatory fee process
by ensuring a more equitable distribution of the regulatory fee burden
among categories of Commission licensees under the statutory framework
in section 9 of the Communications Act. Specifically, 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; \11\
reallocated some FTEs from the International Bureau as ``indirect;''
\12\ combined the UHF and VHF television stations into one regulatory
fee category; \13\ and created a regulatory fee category that included
Internet Protocol Television (IPTV).\14\ Subsequently, in the FY 2014
Report and Order and FNPRM, the Commission adopted a new fee
subcategory (within the Interstate Telecommunications Service Provider
(ITSP) category) for toll free numbers; \15\ increased the de minimis
threshold for annual regulatory fee payors; \16\ and eliminated several
categories from the regulatory fee schedule.\17\ In the FY 2015 NPRM
and
[[Page 35683]]
Report and Order, the Commission added a subcategory for Direct
Broadcast Satellite (DBS) providers (in the cable television and IPTV
regulatory fee category) based on the finding that Media Bureau FTEs
work on issues and proceedings that include DBS as well as other
multichannel video programming distributors (MVPDs).\18\ In addition,
in the FY 2015 NPRM and Report and Order, we sought comment on revising
the regulatory fee schedule for broadcasters.\19\
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\11\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2013, Report and Order, 28 FCC Rcd 12351, 12354-58, paras 10-20
(2013) (FY 2013 Report and Order). This was recommended in a report
issued by the Government Accountability Office (GAO) in 2012. See
GAO ``Federal Communications Commission Regulatory Fee Process Needs
to be Updated,'' GAO-12-686 (August 2012) (GAO Report) at 36,
(available at https://www.gao.gov/products/GAO-12-686).
\12\ FY 2013 Report and Order, 28 FCC Rcd at 12355-58, paras.
13-20.
\13\ Id., 28 FCC Rcd at 12361-62, paras. 29-31.
\14\ Id., 28 FCC Rcd at 12362-63, paras. 32-33.
\15\ 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).
\16\ FY 2014 Report and Order and FNPRM, 29 FCC Rcd at 10774-76,
paras. 18-21.
\17\ Id., 29 FCC Rcd at 10776-77, paras. 22-24.
\18\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2015, Notice of Proposed Rulemaking, Report and Order, and
Order, 30 FCC Rcd 5354, 5364-5373, paras. 28-41 (2015) (FY 2015 NPRM
and Report and Order). We also eliminated two additional fee
categories. See id., 30 FCC Rcd at 5361-62, paras. 19-22.
\19\ Id., 30 FCC Rcd at 5359, para. 13. In the FY 2015 Report
and Order and FNPRM, we sought further comment on the broadcast
regulatory fees issue and also sought comment on ITTA's proposal to
reallocate FTEs in the Wireline Competition Bureau. Assessment and
Collection of Regulatory Fees for Fiscal Year 2015, Report and Order
and Further Notice of Proposed Rulemaking, 30 FCC Rcd 10268, 10279-
282, paras. 27-34 (2015) (FY 2015 Report and Order and FNPRM).
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IV. Discussion
A. Notice of Proposed Rulemaking
11. We propose to collect $384,012,497 in regulatory fees for FY
2016, pursuant to section 9 of the Communications Act.\20\ Of this
amount, we project approximately $21.4 million (5.56 percent of the
total FTE allocation) in fees from the International Bureau regulatees;
\21\ $81.9 million (21.3 percent of the total FTE allocation) in fees
from the Wireless Telecommunications Bureau regulatees; \22\ $133.97
million (34.95 percent of the total FTE allocation) from the Media
Bureau regulatees; \23\ and $146.8 million (38.19 percent of the total
FTE allocation) from Wireline Competition Bureau regulatees.\24\
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\20\ 47 U.S.C. 159. The proposed regulatory fee rates for FY
2016 include $339,844,000 for operational expenses and an additional
one time amount of $44,168,497 to offset facilities reduction, i.e.,
reduce our office space footprint and move the FCC office location
if necessary. Consolidated Appropriations Act, 2016, Public Law 114-
113, Dec. 18, 2015. Due to the facilities reduction, regulatees'
aggregate fees by category increased on average by approximately 11-
13 percent for 2016.
\21\ Includes satellites, earth stations, submarine cable, and
bearer circuits.
\22\ Includes Commercial Mobile Radio Service (CMRS), CMRS
messaging, Broadband Radio Service/Local Multipoint Distribution
Service (BRS/LMDS), and multi-year wireless licensees.
\23\ Includes AM radio, FM radio, television, low power/FM,
cable television and IPTV, DBS, and Cable Television Relay Service
(CARS) licenses.
\24\ Includes Interstate Telecommunications Service Providers
(ITSP) and toll free numbers.
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12. These regulatory fees are mandated by Congress and are
collected ``to recover the costs of . . . enforcement activities,
policy and rulemaking activities, user information services, and
international activities.'' \25\ We seek comment on the proposed
regulatory fee schedule in Table 4.
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\25\ 47 U.S.C. 159(a).
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1. DBS Regulatory Fees as a Subcategory in the Cable Television and
IPTV Category
13. This proposed fee schedule includes an updated regulatory fee
for DBS, a subcategory in the cable television and IPTV category.\26\
In 2015, the Commission adopted the initial regulatory fee for DBS, as
a subcategory in the cable television and IPTV category, of 12 cents
per year per subscriber, or one cent per month.\27\ At that time, the
Commission stated that it would update the rate for FY 2016, as
necessary for ensuring an appropriate level of regulatory parity and
considering the resources dedicated to this subcategory.\28\ When the
Commission adopted this regulatory fee subcategory for DBS, the
Commission observed that numerous regulatory developments had increased
the Media Bureau FTE activity involving regulation and oversight of
MVPDs, including DBS providers.\29\ For example, DBS providers (and
cable television operators) are permitted to file program access
complaints \30\ and complaints seeking relief under the retransmission
consent good faith rules; \31\ DBS providers are subject to MVPD
requirements such as those pertaining to program carriage; \32\ and
they are subject to the requirement to negotiate retransmission consent
in good faith.\33\ In addition, the Commission, in recent years,
adopted numerous requirements that apply to all MVPDs, and thus DBS
providers, as part of its implementation of the Commercial
Advertisement Loudness Mitigation Act (CALM Act),\34\ the Twenty-First
Century Communications and Video Accessibility Act of 2010 (CVAA),\35\
as well as the Satellite Television Extension and Localism Act (STELA)
Reauthorization Act of 2014 (STELAR).\36\
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\26\ DBS also pays a regulatory per operational station in
geostationary orbit.
\27\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10276-77,
paras. 19-20.
\28\ Id., 30 FCC Rcd at 10277, para. 20.
\29\ See FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5367-
68, para. 31.
\30\ 47 U.S.C. 548; 47 CFR 76.1000-1004.
\31\ 47 U.S.C. 325(b)(1), (3)(C)(ii); 47 CFR 76.65(b).
\32\ 47 U.S.C. 536; 47 CFR 76.1300-1302.
\33\ 47 U.S.C. 325(b)(3)(C)(iii); 47 CFR 76.65(a)-(b).
\34\ See Implementation of the Commercial Advertisement,
Loudness Mitigation (CALM) Act, Report and Order, 26 FCC Rcd 17222
(2011) (CALM Act Report and Order).
\35\ 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.
\36\ The STELA Reauthorization Act of 2014 (STELAR), Public Law
113-200, 128 Stat. 2059 (2014). STELAR was enacted on December 4,
2014 (H.R. 5728, 113th Cong.). Commission work on implementation of
the Act was immediate. See, e.g., Implementation of Sections 101,
103 and 105 of the STELA Reauthorization Act of 2014, Order, 30 FCC
Rcd 2380 (2015) (implementing certain STELAR provisions under the
``good cause'' exception to the Administrative Procedure Act);
Amendment to the Commission's Rules Concerning Market Modification,
Implementation of Section 102 of the STELA Reauthorization Act of
2014, Report and Order, 30 FCC Rcd 10406 (2015) (adopting satellite
television market modification rules to enable satellite carriers,
cable operators, and commercial television stations to better serve
the interests of their local communities); Implementation of Section
103 of the STELA Reauthorization Act of 2014, Notice of Proposed
Rulemaking, 30 FCC Rcd 10327 (2015) (seeking comment on potential
updates to the ``totality of the circumstances'' test for good faith
negotiation of retransmission consent); Final Report of the DSTAC,
available at https://transition.fcc.gov/dstac/dstac-report-final-08282015.pdf; ``Media Bureau Seeks Comment on DSTAC Report,'' Public
Notice, DA 15-982, 2015 WL 5164960 (MB 2015); ``Media Bureau Seeks
Comment for Report Required by the STELA Reauthorization Act of
2014,'' Public Notice, 30 FCC Rcd 1904 (2015) (seeking information
for a report to Congress on designated market areas and
considerations for fostering increased localism).
---------------------------------------------------------------------------
14. FY 2015 was the first time the Commission assessed a regulatory
fee for DBS based on Media Bureau FTEs. At that time, the Commission
concluded an initial rate of 12 cents per subscriber per year was a
sensible fee supported by data and analysis for FY 2015.\37\ In
adopting the regulatory fee for DBS as a subcategory of cable
television and IPTV category, the Commission explained that ``although
DBS is not identical to cable television and IPTV, the services all
receive oversight and regulation as a result of the work of Media
Bureau FTEs on MVPD issues. The burden imposed on the Commission is
therefore similar.'' \38\ At the same time, the Commission also
explained that it would examine the appropriate allocation between and
among MVPD regulatees in the coming years as the Commission implemented
the new DBS fee.\39\ Such examination is
[[Page 35684]]
consistent with a report issued by the Government Accountability Office
(GAO) in 2012, which observed it is important for the Commission to
``regularly update analyses to ensure that fees are set based on
relevant information.'' \40\
---------------------------------------------------------------------------
\37\ See FY 2015 Report and Order and FNPRM, 30 FCC Rcd at
10276-77, para. 20. 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 223, 232 (5th Cir. 1979); National Cable
Television Ass'n v. FCC, 554 F.2d 1094, 1105 (D.C. Cir. 1976).
\38\ FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5369,
para. 33.
\39\ FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5367-68,
para. 34, n.129 (The Commission explained that ``[e]ven when an
industry has oversight generally by one organizational unit within
the Commission, we are sensitive to the fact that balance between
members of the same industry may require adjustments to FTE
allocations.'').
\40\ GAO Report at 12.
---------------------------------------------------------------------------
15. In addition to the activities described in our FY 2015
regulatory fee proceeding, DBS, along with other MVPDs, continues to
receive oversight and regulation as a result of the work of Media
Bureau FTEs. For example, the Commission recently adopted a Report and
Order requiring cable operators, DBS providers, and certain other
licensees to post their public file documents to the FCC-hosted online
database.\41\ In addition, the Commission is currently reviewing a
proposal by Chairman Wheeler to unlock the set-top box of cable and DBS
operators.\42\ Thus, for reasons similar to those discussed in the FY
2015 NPRM and Report and Order,\43\ and based on the Commission's
analysis of the resources dedicated to this subcategory, including the
resources dedicated to the pending portfolio of MVPD proceedings, the
Commission proposes to revise the DBS fee rate. Specifically, in this
FY 2016 regulatory fee proceeding, the Commission seeks comment on a
higher regulatory fee rate of 27 cents per subscriber per year for FY
2016, as set forth in the proposed fee schedule. This fee includes a 24
cent per subscriber baseline with a proportional adjustment of three
cents per subscriber associated with the Commission's facilities
reduction costs.
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\41\ Expansion of Online Public File Obligations to Cable and
Satellite TV Operators and Broadcast and Satellite Radio Licensees,
Memorandum, Opinion and Order, FCC 16-4, 2016 WL 380814 (released
January 29, 2016).
\42\ ``Expanding Consumer Choice in the Video Marketplace''
(January 28, 2016), available at https://www.fcc.gov/news-events/blog/2016/01/28/expanding-consumer-choice-video-marketplace.
\43\ FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5367-5373,
paras. 31-41.
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2. Broadcaster Regulatory Fees
16. The Commission assesses regulatory fees on radio broadcasters
based on type and class of service and on the population served. Upon
occasion, the Commission makes adjustments to the methodology for
assessing regulatory fees on radio broadcasters. For example,
concerning population served, the Commission adopted a methodology that
relied on the radio station's calculated field strength signal contour
overlaid upon U.S. Census data to obtain an estimate of the population
coverage for each station.\44\ Subsequently, licensees complained to
the Commission that the contours exaggerated actual market areas and
populations served. The Commission addressed these concerns through
revising the methodology for calculating the fees.\45\ Similarly, in
2003, due to a trend toward more powerful stations and general
increases in the overall population, an increasing number of stations
were grouped in the one million-plus population category of the grid
and the Commission expanded the AM and FM radio station grid to include
wider population thresholds and extended the population category to an
amount ``greater than three million.'' \46\
---------------------------------------------------------------------------
\44\ Assessment and Collection of Regulatory Fees for Fiscal
Year 1997, Report and Order, 12 FCC Rcd 17161, 17179-17184, paras.
47-56 (1997).
\45\ Assessment and Collection of Regulatory Fees for Fiscal
Year 1998, Report and Order, 13 FCC Rcd 19820, 19830-33, paras. 31-
41 (1998).
\46\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2003, Report and Order, 18 FCC Rcd 15985, 15986-87, paras. 4-5
(2003).
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17. In the FY 2015 Report and Order and FNPRM, the Commission
proposed to include a higher population row in the table for AM and FM
broadcasters, i.e., to divide broadcasters that serve 3,000,001-
6,000,000 from those that have a higher population coverage.\47\
Similarly in the FY 2015 Report and Order and FNPRM, the Commission
also proposed to standardize the incremental increase in fees as the
population served increases \48\ and to more consistently assess fees
based on the type and class of service.\49\ No comments were received
by the Commission concerning this proposal. The Commission now
tentatively concludes adopting these proposals will make the regulatory
fees for AM and FM radio more rational and address, in part, the
problem of a large number of stations in the highest grid.\50\ The
Commission seeks comment on the following proposed table of regulatory
fees for AM and FM radio broadcasters, which includes fees based on the
adoption of both options.
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\47\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10280,
para. 28.
\48\ Id. Specifically, we sought comment on standardizing the
incremental increase in fees as radio broadcasters increase the
population they serve, such as by requiring that fee adjustments
between tiers monotonically increase as the population served
increases. Id.
\49\ Id. We sought comment on assessing fees based on the
relative type and class of service, such as by assessing FM class B,
C, C0, C1, & C2 stations at twice the rate of AM class C stations,
and FM class A, B1, & C3 stations assessed at 75 percent more than
AM class C stations. For AM stations, we sought comment on assessing
AM class A stations at 60 percent more, AM class B stations at 15
percent more, and AM class D stations at 10 percent more than AM
class C stations. Id.
\50\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10279-
280, paras. 27-28.
Table 1
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FY 2016 Radio station regulatory fees (proposed)
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FM Classes B,
Population served AM Class A AM Class B AM Class C AM Class D FM Classes A, C, C0, C1 &
B1 & C3 C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................ $1,100 $795 $690 $760 $1,200 $1,375
25,001-75,000........................................... 1,650 1,200 1,025 1,150 1,800 2,050
75,001-150,000.......................................... 2,200 1,600 1,375 1,525 2,400 2,750
150,001-500,000......................................... 3,300 2,375 2,075 2,275 3,600 4,125
500,001-1,200,000....................................... 5,500 3,975 3,450 3,800 6,000 6,875
1,200,001-3,000,00...................................... 8,250 5,950 5,175 5,700 9,000 10,300
3,000,001-6,000,00...................................... 11,000 7,950 6,900 7,600 12,000 13,750
>6,000,000.............................................. 13,750 9,950 8,625 9,500 15,000 17,175
--------------------------------------------------------------------------------------------------------------------------------------------------------
18. Concerning television broadcasters, in the FY 2015 Report and
Order and FNPRM, the Commission proposed to readjust the table to
restore the traditional determination that Top 10 stations should pay
about twice what
[[Page 35685]]
stations in markets 26-50 pay.\51\ The Commission did not receive
comments on this proposal. At this time, the Commission tentatively
concludes that this proposal will make the regulatory fees for
television broadcasters more rational. Accordingly, the Commission
seeks comment on the regulatory fees for television broadcasters as set
forth in Table 4.
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\51\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10280-81,
para. 29.
Table 2
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FY 2016 Television station regulatory fees (proposed)
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FY 2016
Digital TV (47 CFR part 73) VHF and UHF FY 2015 Proposed
commercial Fee rates fee rates
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Markets 1-10.................................... $46,825 $60,775
Markets 11-25................................... 43,200 45,750
Markets 26-50................................... 27,625 30,575
Markets 51-100.................................. 16,275 15,225
Remaining Markets............................... 4,850 5,000
Construction Permits............................ 4,850 5,000
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19. The Commission also recognizes that the incentive auction
scheduled for 2016 is a substantial event for the television broadcast
industry. As a result, in the FY 2015 Report and Order and FNPRM, the
Commission sought comment on whether, when, and how the Commission
should adjust its methodology for assessing regulatory fees on
television stations to respond to such potential changed circumstances
consistent with the provisions of section 9 of the Communications
Act.\52\ While the Commission received comments on the issue,\53\ it is
too early to revise our regulatory fee apportionment because of the
uncertainty in events that have yet to happen. The Commission intends
to consider any changed circumstances due to the incentive auction as
part of the FY 2017 regulatory fee proceeding.
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\52\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10281,
para. 30.
\53\ NAB Comments at 2-7.
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3. International Services: Terrestrial and Satellite Services
20. Facilities-based common carriers must pay regulatory fees for
terrestrial and satellite International Bearer Circuits (IBCs) active
(used or leased) 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.\54\ In the FY 2015 Report and Order and
FNPRM, the Commission asked facilities-based common carriers to review
their reporting processes to ensure that they accurately calculate and
report IBCs.\55\ The Commission reminded facilities-based common
carriers that they must include all common carrier circuits used by
themselves or their affiliates when calculating the number of active
circuits. The Commission also indicated that 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. In this regard, the Commission seeks comment on how we can
ensure that all providers are calculating and reporting IBCs in the
same manner. What criteria do providers use to distinguish common
carrier terrestrial circuits from non-common carrier terrestrial
circuits for regulatory fee purposes?
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\54\ See para. 22 infra.
\55\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd 10268,
10283-85, para. 40 and n.128.
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21. As the Commission has stated in the past, non-common carrier
terrestrial circuits play an important role in the provision of
international services through microwave and fiber links across the
U.S.-Canada and U.S.-Mexico borders, and the Commission regularly
engages with counterparts in Canada and Mexico on a wide range of
issues related to cross-border communications.\56\ In 2009, the
Commission explored whether carriers should be assessed regulatory fees
for their terrestrial non-common carrier circuits, but declined to do
so at that time because of the ``complexity of the legal, policy and
equity issues involved.'' \57\ Since that time, the telecommunications
industry and Commission's rules have evolved, and the Commission now
seeks comment on whether it would be more equitable to no longer
distinguish common carrier terrestrial circuits from non-common carrier
terrestrial circuits for regulatory fee purposes. If the Commission
requires carriers providing international service over terrestrial
circuits to pay IBC regulatory fees for their non-common carrier
circuits, what is the least burdensome methodology for calculating
fees? For example, should the Commission require carriers to report the
total amount of international revenue rather than the number of
circuits? How do carriers identify their international revenues? How
can the Commission ensure carriers are accurately reporting both common
carrier and non-common carrier terrestrial circuits? Finally, how can
the Commission improve the requirements and regulatory treatment of
terrestrial and satellite services for purposes of regulatory fees?
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\56\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2009, Notice of Proposed Rulemaking and Order, 24 FCC Rcd 5966,
5971, para. 14 (2009).
\57\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2009, Report and Order, 24 FCC Rcd 10301, 10306-307, paras. 16-
17 (2009). On March 17, 2009, the Commission adopted in the
Submarine Cable Order a new submarine cable bearer circuit
methodology that allocates IBC costs among service providers in an
equitable and competitively neutral manner, without distinguishing
between common carriers and non-common carriers, by assessing a flat
per cable landing license fee for all submarine cable systems.
Assessment and Collection of Regulatory Fees for Fiscal Year 2008,
Second Report and Order, 24 FCC Rcd 4208, 4214-16, paras. 13-17
(2009) (Submarine Cable Order).
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4. Other Regulatory Fee Reform
a. ITTA Proposal
22. In the FY 2015 Report and Order and FNPRM, the Commission
sought comment on ITTA's proposals to combine wireless voice and
wireline services into the ITSP category \58\ or, alternatively, to re-
assign certain Wireline Competition Bureau FTEs to other fee
categories, for regulatory fee purposes. The Commission also sought
comment on adopting a new regulatory fee category for CMRS, as a
subcategory of the ITSP regulatory fee category.\59\ The Commission has
had an opportunity to further review ITTA's proposals and, as we
explain below, we tentatively conclude that combining the wireline and
wireless categories, reassigning Wireline Competition Bureau FTEs to
the Wireless Telecommunications Bureau, and/or adopting a new
subcategory for CMRS in the ITSP regulatory fee category are not
consistent with Commission orders implementing section 9 of the
Communications Act.
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\58\ ITTA Comments at 4-9. See FY 2015 Report and Order and
FNPRM, 30 FCC Rcd at 10281-82, paras. 31-34. ITTA had proposed this
previously. See, e.g., Assessment and Collection of Regulatory Fees
for Fiscal Year 2014, Notice of Proposed Rulemaking, 29 FCC Rcd
6417, 6430-31, paras. 36-39 (2014) (FY 2014 NPRM); Assessment and
Collection of Regulatory Fees for Fiscal Year 2013, Notice of
Proposed Rulemaking and Further Notice of Proposed Rulemaking, 28
FCC Rcd 7790, 7796, para. 12 (2013) (FY 2013 NPRM); Assessment and
Collection of Regulatory Fees for Fiscal Year 2008, Report and Order
and Further Notice of Proposed Rulemaking, 24 FCC Rcd 6388, 6404-05,
paras. 40-41 (2008) (FY 2008 FNPRM).
\59\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10282,
para. 34. ITTA and ACA argue that such change is supported by the
fact that many proceedings in the Wireline Competition Bureau
proceedings, and elsewhere, such as those involving universal
service, intercarrier compensation, pole attachments, rural call
completion, number portability, 911 access, and special access,
affect wireless service providers. ITTA Comments at 9-10; ACA
Comments at 4-7. CTIA opposes this proposal as arbitrary and
capricious as well as in violation of section 9 of the Act. CTIA
Comments at 2.
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23. The Commission has stated that ``[g]iven the significant
implications of reassignment of FTEs in our fee
[[Page 35686]]
calculation, we make changes to FTE classifications only after
performing considerable analysis and finding the clearest case for
reassignment.'' \60\ In this instance, ITTA contends that the Wireline
Competition Bureau FTEs working on universal service issues and other
proceedings benefit categories of service providers other than ITSPs,
particularly CMRS providers, and therefore should be considered in
calculating the CMRS regulatory fee.\61\ Based on our own detailed
analysis, as well as the fact that the Wireless Telecommunications
Bureau assigns its own FTEs to coordinate with the Wireline Competition
Bureau on relevant wireless issues, we tentatively conclude that a
clear case for reassignment of Wireline Competition Bureau FTEs to the
Wireless Telecommunications Bureau is not demonstrated in this
instance. Our analysis of the Wireline Competition Bureau FTE work on
wireline issues that also affect the CMRS industry does not support
adopting a new subcategory for CMRS in the ITSP regulatory fee
category--and thus assessing regulatory fees on CMRS based on both
Wireless Telecommunications Bureau FTEs and Wireline Competition Bureau
FTEs, as ITTA proposes.\62\ Further, ITTA's proposal to combine these
regulatory fee categories does not appear to address the substantial
differences between the services in terms of regulatory oversight by
the two bureaus. Thus, at this juncture, the Commission does not find
that the ``clearest case of reassignment'' exists based on the
considerable analysis we have conducted.
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\60\ 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.
\61\ ITTA Comments at 10.
\62\ See Letter from Micah M. Caldwell, ITTA, to Marlene H.
Dortch, Secretary, FCC (January 22, 2016).
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24. The Commission nevertheless seeks comment on whether it would
be appropriate to allocate some proportion of the direct FTEs that
devote time to universal service and/or numbering issues as additional
indirect FTEs.\63\ Based on staff estimates looking back over a 6 to 12
month period, of the 165 FTEs in the Wireline Competition Bureau,
approximately seven FTEs work on numbering issues and 52 FTEs work on
universal service issues (approximately 16 on the high-cost program, 13
on the schools and libraries program, nine on the Lifeline program for
low income consumers (lifeline), seven on the rural healthcare program,
and seven on universal service contributions).\64\ Of the 92 FTEs in
the Wireless Telecommunications Bureau, staff estimate that the
equivalent of approximately five FTEs work roughly full time on
universal service issues (primarily the high-cost program). If we were
to reallocate, for regulatory fee purposes, some proportion of the
direct FTEs, what should that proportion be? Any proposals should
demonstrate policy or legal arguments supporting reallocating some
proportion of numbering and/or USF FTEs as indirect. In doing so, the
Commission would invite comment on whether some or all of the FTEs that
work on universal service contributions, the schools and libraries
program, or the rural healthcare program, should be reallocated as
indirect FTEs. Should the Commission reallocate some proportion of the
FTEs from each bureau that work on the high-cost program, given the
participation of non-wireline and wireless regulatees in the Connect
America Fund proceedings? What proportion, if any, of the FTEs that
work on numbering issues and the lifeline program should the Commission
reallocate given that a significant number of regulatees benefiting
from those programs are not wireline regulatees? Is there some
proportion of these FTEs whose ``activities benefit the Commission as a
whole and are not specifically focused on [core bureau] regulatees''?
\65\ Commenters' proposals for FTE reallocation should be consistent
with the section 9 requirement that regulatory fees are to ``be derived
by determining the full-time equivalent number of employees
performing'' Commission activities, ``adjusted to take into account
factors that are reasonably related to the benefits provided to the
payer of the fee by the Commission's activities . . . .'' \66\
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\63\ Currently, indirect FTEs in various bureaus and offices
work on universal service issues.
\64\ These estimates can vary as discussed above and do not
represent an entire fiscal year.
\65\ FY 2013 NPRM, 28 FCC Rcd at 7803, para. 28.
\66\ 47 U.S.C. 159(b)(1)(A). (Emphasis added).
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25. The Commission notes that incorrect allocation of FTEs to a
particular core bureau may disproportionately impact regulatees given
that indirect FTEs are allocated proportionally based on the direct FTE
percentage attributable to a particular core bureau. The Commission
also notes that any change in the allocation of FTEs necessarily
affects the fees paid by payors in all other fee categories. We seek
comment on whether this proposal is consistent with section 9 of the
Act \67\ and with the Commission's allocation policies with respect to
direct and indirect FTEs.\68\ Commenters should also address the
Commission's goal of ensuring that regulatory fees are administrable
and sustainable.\69\
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\67\ Section 9 of the Communications Act requires regulatory
fees collected ``to recover the costs of . . . enforcement
activities, policy and rulemaking activities, user information
services, and international activities.'' 47 U.S.C. 159(a). The
regulatory fees are to ``be derived by determining the full-time
equivalent number of employees performing'' these activities,
``adjusted to take into account factors that are reasonably related
to the benefits provided to the payer of the fee by the Commission's
activities . . . .'' 47 U.S.C. 159(b)(1)(A).
\68\ FY 2013 Report and Order, 28 FCC Rcd at 12354-55, paras.
10-12 (adopting use of current FTE data for purposes of regulatory
fee calculations as opposed to 1998 FTE data previously used); id.
at 12357-58, paras. 19-20 (``It would be inconsistent with section 9
to delay reallocating the International Bureau FTEs, where the
reallocation is clearly warranted, while we engage in painstaking
examinations of less clear and more factually complex situations in
other bureaus. . . . At the same time, however, we recognize that a
reexamination of how FTEs are allocated throughout the Commission is
an indispensable part of comprehensively revising the Commission's
regulatory fee program.''); FY 2013 NPRM, 28 FCC Rcd at 7793-95,
7796-99, 7803, paras. 7-10, 15-19, 29 (generally explaining prior
FTE allocation methodology and proposing methodology changes).
\69\ FY 2013 Report and Order, 28 FCC Rcd at 12354, para 9.
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b. Earth Stations
26. In the FY 2014 NPRM, the Commission sought comment on
increasing 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.\70\ In the FY 2014 regulatory fee proceeding, the Commission
increased the regulatory fees paid by earth station licensees by
approximately 7.5 percent based on our analysis and review of the
record.\71\ In the FY 2015 NPRM and Report and Order, the Commission
sought comment on whether to raise the earth station regulatory fees
again.\72\ We concluded, however, that the issue required further
analysis, in part because the then-pending part 25 proceeding
streamlining the satellite licensing rules might affect the
distribution of FTE work.\73\ An Order was adopted in that proceeding
in December 2015, and accordingly it is timely to again seek comment on
whether to increase the regulatory fees paid by earth station
licensees.\74\ In this context, we seek comment on EchoStar's proposal
to
[[Page 35687]]
adopt different regulatory fees for different types of earth station
licenses.\75\
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\70\ FY 2014 NPRM, 29 FCC Rcd at 6428, para. 29.
\71\ See FY 2014 Report and Order, 29 FCC Rcd at 10772-73, para.
12.
\72\ FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5360,
para. 14.
\73\ FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5360,
para. 14.
\74\ See Comprehensive Review of Licensing and Operating Rules
for Satellite Services, Second Report and Order, 30 FCC Rcd 14713
(2015).
\75\ See EchoStar July 20, 2015 ex parte, filed in MD Docket No.
15-121.
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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
27. Pursuant to an Office of Management and Budget (OMB)
directive,\76\ the Commission is moving towards a paperless
environment, extending to disbursement and collection of select federal
government payments and receipts.\77\ Last year the Commission stopped
accepting 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.\78\ This new paperless procedure
requires that all payments be made by online Automated Clearing House
(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
affects all payments of regulatory fees.\79\
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\76\ Office of Management and Budget (OMB) Memorandum M-10-06,
Open Government Directive, December 8, 2009; see also https://www.whitehouse.gov/the-press-office/2011/06/13/executive-order-13576-delivering-efficient-effective-and-accountable-gov.
\77\ See U.S. Department of the Treasury, Open Government Plan
2.1, September 2012.
\78\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10282-83,
para. 35. See 47 CFR 1.1158.
\79\ 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.
---------------------------------------------------------------------------
2. Revised Credit Card Transaction Levels
28. Since June 1, 2015, 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.\80\ 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, 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
2016 regulatory fee collection in Fact Sheets, available at https://www.fcc.gov/regfees.
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\80\ 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. De Minimis Regulatory Fees
29. Regulatees whose total FY 2016 annual regulatory fee liability,
including all categories of fees for which payment is due, is $500 or
less are exempt from payment of FY 2016 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. Each regulatee will need to reevaluate their total
fee liability each fiscal year to determine whether they meet the de
minimis exemption.
4. Standard Fee Calculations and Payment Dates
30. 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, 2015 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, 2015. For
providers of Direct Broadcast Satellite (DBS) service, regulatory fees
should be paid based on a subscriber count on or about December 31,
2015. In instances where a permit or license is transferred or assigned
after October 1, 2015, 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,
2015. In instances where a permit or license is transferred or assigned
after October 1, 2015, 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.\81\ For Responsible
Organizations (RespOrgs) that manage Toll Free Numbers (TFN),
regulatory fees should be paid on all working, assigned, and reserved
toll free numbers as well as toll free numbers in any other status as
defined in section 52.103 of the Commission's rules.\82\ The unit count
should be based on toll free numbers managed by RespOrgs on or about
December 31, 2015.
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\81\ Audio bridging services are toll teleconferencing services.
\82\ 47 CFR 52.103.
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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, 2015. The number of subscribers, units,
or telephone numbers on December 31, 2015 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, 2015,
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 3) to publicize our estimates of the number of ``small multi-year
wireless'' licenses that will be renewed or newly obtained in FY 2016.
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,
2015.\83\
[[Page 35688]]
Regulatory fees also must be paid for CARS licenses that were granted
on or before October 1, 2015. In instances where a permit or license is
transferred or assigned after October 1, 2015, responsibility for
payment rests with the holder of the permit or license as of the fee
due date.
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\83\ 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 2015, rather than on a count as of December 31,
2015.
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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, 2015. In instances where a permit
or license is transferred or assigned after October 1, 2015,
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, 2015. In instances where a license is transferred or assigned after
October 1, 2015, responsibility for payment rests with the holder of
the license as of the fee due date. For regulatory fee purposes, the
allocation in FY 2016 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 (IBCs) are to be paid by facilities-based common
carriers that have active (used or leased) international bearer
circuits as of December 31, 2015 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, 2015. Whether circuits are used specifically for voice or
data is not relevant for purposes of determining that they are active
circuits.\84\ In instances where a permit or license is transferred or
assigned after October 1, 2015, 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 2016 will remain at 87.6
percent for submarine cable and 12.4 percent for satellite/terrestrial
facilities.\85\
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\84\ We encourage terrestrial and satellite service providers to
seek guidance from the International Bureau's Telecommunications and
Analysis Division to verify their particular IBC reporting processes
to ensure that their calculation methods comply with our rules.
\85\ We remind facilities-based common carriers to review their
reporting processes to ensure that they accurately calculate and
report IBCs.
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B. Commercial Mobile Radio Service (CMRS) Cellular and Mobile Services
Assessments
31. 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'').\86\ 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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\86\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2005, Report and Order and Order on Reconsideration, 20 FCC Rcd
12259, 12264, paras. 38-44 (2005).
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32. 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.\87\ 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.
---------------------------------------------------------------------------
\87\ 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.
---------------------------------------------------------------------------
33. 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, 2015),
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.
VI. Additional Tables
Table 3--Calculation of FY 2016 Revenue Requirements and Pro-Rata Fees
[Regulatory fees for the first seven categories below are collected by the Commission in advance to cover the term of the license and are submitted at
the time the application is filed]
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2015 Prorated FY
Fee category FY 2016 payment Years revenue 2016 revenue Computed FY Rounded FY Expected FY
units estimate requirement 2016 reg. fee 2016 reg. fee 2016 revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)...................... 2,500 10 546,000 625,938 25 25 625,000
PLMRS (Shared use) Includes Rural Radio 31,100 10 3,100,000 3,114,665 10 10 3,110,000
Service (47 CFR part 22)..................
Microwave.................................. 12,500 10 2,520,000 3,129,688 25 25 3,125,000
[[Page 35689]]
Marine (Ship).............................. 6,900 10 945,000 1,036,553 15 15 1,035,000
Aviation (Aircraft)........................ 4,700 10 420,000 470,705 10 10 470,000
Marine (Coast)............................. 480 10 171,500 192,288 40 40 192,000
Aviation (Ground).......................... 1,100 10 180,000 220,330 20 20 220,000
AM Class A\4\.............................. 66 1 281,125 314,451 4,764 4,775 315,150
AM Class B\4\.............................. 1,535 1 3,499,125 3,893,459 2,536 2,525 3,875,875
AM Class C\4\.............................. 889 1 1,244,600 1,409,299 1,585 1,575 1,400,175
AM Class D\4\.............................. 1,492 1 4,103,000 4,607,579 3,088 3,100 4,625,200
FM Classes A, B1 & C3 \4\.................. 3,122 1 8,613,000 9,652,908 3,092 3,100 9,678,200
FM Classes B, C, C0, C1 & C2 \4\........... 3,139 1 10,607,625 11,826,839 3,768 3,775 11,849,725
AM Construction Permits \1\................ 15 1 17,110 10,366 691 690 10,350
FM Construction Permits\1\................. 179 1 136,500 215,122 1,202 1,200 214,800
Satellite TV............................... 128 1 200,025 224,336 1,753 1,750 224,000
Digital TV Markets 1-10.................... 139 1 6,274,550 8,446,540 60,766 60,775 8,447,725
Digital TV Markets 11-25................... 139 1 5,918,400 6,358,412 45,744 45,750 6,359,250
Digital TV Markets 26-50................... 181 1 5,000,125 5,532,175 30,565 30,575 5534,075
Digital TV Markets 51-100.................. 283 1 4,605,825 4,311,203 15,234 15,225 4,308,675
Digital TV Remaining Markets............... 365 1 1,838,150 1,827,738 5,008 5,000 1,825,000
Digital TV Construction Permits\1\......... 3 1 9,700 15,023 5,000 5,000 15,000
LPTV/Translators/Boosters/Class A TV....... 3,924 1 1,601,600 1,788,098 456 455 1,785,420
CARS Stations.............................. 285 1 198,000 221,206 776 775 220,875
Cable TV Systems, including IPTV........... 64,100,000 1 61,920,000 64,196,150 1.0015 1.00 64,100,000
Direct Broadcast Satellite (DBS)........... 34,000,000 1 4,080,000 9,193,770 .2704 .27 9,180,000
Interstate Telecommunication Service $38,400,000,000 1 128,428,000 141,908,544 0.0036955 0.00370 142,080,000
Providers.................................
Toll Free Numbers.......................... 36,500,000 1 4,380,000 4,752,018 0.1302 0.13 4,745,000
CMRS Mobile Services (Cellular/Public 360,000,000 1 60,180,000 72,108,276 0.2003 0.20 72,000,000
Mobile)...................................
CMRS Messag. Services...................... 2,300,000 1 208,000 184,000 0.0800 0.080 184,000
BRS \2\.................................... 890 1 565,150 645,250 725 725 645,250
LMDS....................................... 395 1 238,125 286,375 725 725 286,375
Per 64 kbps Int'l Bearer Circuits 22,500,000 1 657,000 770,617 .0342 .03 675,000
Terrestrial (Common) & Satellite (Common &
Non-Common)...............................
Submarine Cable Providers (see chart in 39.19 1 4,652,576 5,444,038 138,914 138,925 5,444,471
Appendix B) \3\...........................
Earth Stations............................. 3,400 1 1,023,000 1,174,760 346 345 1,173,000
Space Stations (Geostationary)............. 95 1 11,438,400 13,174,858 138,683 138,675 13,174,125
Space Stations (Non-Geostationary)......... 6 1 792,750 913,068 152,178 152,175 913,050
****** Total Estimated Revenue to be .................. ....... 340,593,961 384,196,740 .............. .............. 384,066,766
Collected.............................
------------------------------------------------------------------------------------------------------------
****** Total Revenue Requirement....... .................. ....... 339,844,000 384,012,497 .............. .............. 384,012,497
------------------------------------------------------------------------------------------------------------
Difference......................... .................. ....... 749,961 184,243 .............. .............. 54,269
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table 3.
\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).
[[Page 35690]]
\3\ The chart at the end of Table 4 lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from
the adoption of Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Report and Order and Further Notice of Proposed Rulemaking, 24 FCC
Rcd 6388 (2008) and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd 4208 (2009).
\4\ The fee amounts listed in the column entitled ``Rounded New FY 2016 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
service. The actual FY 2016 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4.
Table 4--Proposed Regulatory Fees FY 2016 Schedule of Regulatory Fees
[Regulatory fees for the first eight categories below are collected by
the Commission in advance to cover the term of the license and are
submitted at the time the application is filed]
------------------------------------------------------------------------
Annual regulatory
Fee category fee (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90). 25
Microwave (per license) (47 CFR part 101)............ 25
Marine (Ship) (per station) (47 CFR part 80)......... 15
Marine (Coast) (per license) (47 CFR part 80)........ 40
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 .20
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 725
license) (47 CFR part 27) Local Multipoint 725
Distribution Service (per call sign) (47 CFR, part
101)................................................
AM Radio Construction Permits........................ 690
FM Radio Construction Permits........................ 1,200
Digital TV (47 CFR part 73) VHF and UHF Commercial
Markets 1-10..................................... 60,775
Markets 11-25.................................... 45,750
Markets 26-50.................................... 30,575
Markets 51-100................................... 15,225
Remaining Markets................................ 5,000
Construction Permits............................. 5,000
Satellite Television Stations (All Markets).......... 1,750
Low Power TV, Class A TV, TV/FM Translators & 455
Boosters (47 CFR part 74)...........................
CARS (47 CFR part 78)................................ 775
Cable Television Systems (per subscriber) (47 CFR 1.00
part 76), Including IPTV............................
Direct Broadcast Service (DBS) (per subscriber) (as .27
defined by section 602(13) of the Act)..............
Interstate Telecommunication Service Providers (per .00370
revenue dollar).....................................
Toll Free (per toll free subscriber) (47 CFR section .13
52.101 (f) of the rules)............................
Earth Stations (47 CFR part 25)...................... 345
Space Stations (per operational station in 138,675
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100)................................................
Space Stations (per operational system in non- 152,175
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 2016 Schedule of Regulatory Fees
[Table 4 continued]
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2016 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................................................ $1,100 $795 $690 $760 $1,200 $1,375
25,001-75,000........................................... 1,650 1,200 1,025 1,150 1,800 2,050
75,001-150,000.......................................... 2,200 1,600 1,375 1,525 2,400 2,750
150,001-500,000......................................... 3,300 2,375 2,075 2,275 3,600 4,125
500,001-1,200,000....................................... 5,500 3,975 3,450 3,800 6,000 6,875
1,200,001-3,000,00...................................... 8,250 5,950 5,175 5,700 9,000 10,300
3,000,001-6,000,00...................................... 11,000 7,950 6,900 7,600 12,000 13,750
>6,000,000.............................................. 13,750 9,950 8,625 9,500 15,000 17,175
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 35691]]
FY 2016 SCHEDULE OF REGULATORY FEES
[International Bearer Circuits--Submarine Cable (Table 4 continued)]
------------------------------------------------------------------------
Submarine Cable Systems (capacity as of December 31,
2015) Fee amount
------------------------------------------------------------------------
< 2.5 Gbps.............................................. $8,675
2.5 Gbps or greater, but less than 5 Gbps............... 17,375
5 Gbps or greater, but less than 10 Gbps................ 34,725
10 Gbps or greater, but less than 20 Gbps............... 69,475
20 Gbps or greater...................................... 138,925
------------------------------------------------------------------------
Table 5--Sources of Payment Unit Estimates for FY 2016
In order to calculate individual service fees for FY 2016, we
adjusted FY 2015 payment units for each service to more accurately
reflect expected FY 2016 payment liabilities. We obtained our updated
estimates through a variety of means. For example, we used Commission
licensee data bases, actual prior year payment records and industry and
trade association projections when available. The databases we
consulted include our Universal Licensing System (ULS), International
Bureau Filing System (IBFS), Consolidated Database System (CDBS) and
Cable Operations and Licensing System (COALS), as well as reports
generated within the Commission such as the Wireless Telecommunications
Bureau's Numbering Resource Utilization Forecast.
We sought verification for these estimates from multiple sources
and, in all cases, we compared FY 2016 estimates with actual FY 2015
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 2016 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 2016 payment units are based on FY 2015
actual payment units, it does not necessarily mean that our FY 2016
projection is exactly the same number as in FY 2015. We have either
rounded the FY 2016 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 2015 payment data.
CMRS Messaging Services........... Based on WTB reports, and FY 2015
payment data.
AM/FM Radio Stations.............. Based on CDBS data, adjusted for
exemptions, and actual FY 2015
payment units.
Digital TV Stations (Combined VHF/ Based on CDBS data, adjusted for
UHF units). exemptions, and actual FY 2015
payment units.
AM/FM/TV Construction Permits..... Based on CDBS data, adjusted for
exemptions, and actual FY 2015
payment units.
LPTV, Translators and Boosters, Based on CDBS data, adjusted for
Class A Television. exemptions, and actual FY 2015
payment units.
BRS (formerly MDS/MMDS)........... Based on WTB reports and actual FY
2015 payment units.
LMDS.............................. Based on WTB reports and actual FY
2015 payment units.
Cable Television Relay Service Based on data from Media Bureau's
(CARS) Stations. COALS database and actual FY 2015
payment units.
Cable Television System Based on publicly available data
Subscribers, Including IPTV sources for estimated subscriber
Subscribers. counts and actual FY 2015 payment
units.
Interstate Telecommunication Based on FCC Form 499-Q data for the
Service Providers. four quarters of calendar year
2015, the Wireline Competition
Bureau projected the amount of
calendar year 2015 revenue that
will be reported on 2016 FCC Form
499-A worksheets in April 2016.
Earth Stations.................... Based on International Bureau (IB)
licensing data and actual FY 2015
payment units.
Space Stations (GSOs & NGSOs)..... Based on IB data reports and actual
FY 2015 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 6--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
(mV/m) @1 km) for the antenna system. The standard, or augmented
standard if pertinent, horizontal plane radiation pattern was
calculated using techniques and methods specified in sections 73.150
and 73.152 of the Commission's rules. 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
[[Page 35692]]
retrieved soil conductivity data, the distance to the principal
community (5 mV/m) contour was predicted for each of the 360 radials.
The resulting distance to principal community contours were used to
form a geographical polygon. Population counting was accomplished by
determining which 2010 block centroids were contained in the polygon.
(A block centroid is the center point of a small area containing
population as computed by the U.S. Census Bureau.) The sum of the
population figures for all enclosed blocks represents the total
population for the predicted principal community coverage area.
FM Stations
The greater of the horizontal or vertical effective radiated power
(ERP) (kW) and respective height above average terrain (HAAT) (m)
combination was used. Where the antenna height above mean sea level
(HAMSL) was available, it was used in lieu of the average HAAT figure
to calculate specific HAAT figures for each of 360 radials under study.
Any available directional pattern information was applied as well, to
produce a radial-specific ERP figure. The HAAT and ERP figures were
used in conjunction with the Field Strength (50-50) propagation curves
specified in 47 CFR 73.313 of the Commission's rules to predict the
distance to the principal community (70 dBu (decibel above 1 microVolt
per meter) or 3.17 mV/m) contour for each of the 360 radials. 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 7--FY 2015 Schedule of Regulatory Fees
Regulatory fees for the first eight categories below are collected
by the Commission in advance to cover the term of the license and are
submitted at the time the application is filed.
------------------------------------------------------------------------
Annual
Fee category regulatory 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 parts .17
20, 22, 24, 27, 80 and 90).............................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, .08
24 and 90).............................................
Broadband Radio Service (formerly MMDS/MDS) (per 635, 635
license) (47 CFR part 27), Local Multipoint
Distribution Service (per call sign) (47 CFR, part 101)
AM Radio Construction Permits........................... 590
FM Radio Construction Permits........................... 750
Digital TV (47 CFR part 73) VHF and UHF Commercial:
Markets 1-10........................................ 46,825
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 & Boosters 440
(47 CFR part 74).......................................
CARS (47 CFR part 78)................................... 660
Cable Television Systems (per subscriber) (47 CFR part .96
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 CFR section .12
52.101 (f) of the rules)...............................
Earth Stations (47 CFR part 25)......................... 310
Space Stations (per operational station in geostationary 119,150
orbit) (47 CFR part 25) also includes DBS Service (per
operational station) (47 CFR part 100).................
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 system). See Table
Below.
------------------------------------------------------------------------
FY 2015 Radio Station Regulatory Fees (Table 7 continued)
--------------------------------------------------------------------------------------------------------------------------------------------------------
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
[[Page 35693]]
>3,000,000.............................................. 9,300 7,800 5,700 6,750 10,500 12,025
--------------------------------------------------------------------------------------------------------------------------------------------------------
International Bearer Circuits--Submarine Cable (Table 7 Continued)
------------------------------------------------------------------------
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
------------------------------------------------------------------------
Initial Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\88\ the Commission prepared this Initial Regulatory
Flexibility Analysis (IRFA) of the possible significant economic impact
on small entities by the policies and rules proposed in the Notice of
Proposed Rulemaking (NPRM). Written comments are requested on this
IRFA. Comments must be identified as responses to the IRFA and must be
filed by the deadline for comments on this NPRM. The Commission will
send a copy of the NPRM, including the IRFA, to the Chief Counsel for
Advocacy of the Small Business Administration (SBA).\89\ In addition,
the NPRM and IRFA (or summaries thereof) will be published in the
Federal Register.\90\
---------------------------------------------------------------------------
\88\ 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).
\89\ 5 U.S.C. 603(a).
\90\ Id.
---------------------------------------------------------------------------
A. Need for, and Objectives of, the Notice
2. The NPRM seeks comment regarding adopting proposed regulatory
fees for Fiscal Year 2016. The proposed regulatory fees are attached to
the NPRM in Table 4. The Commission is required by Congress to adopt
regulatory fees each year ``to recover the costs of . . . enforcement
activities, policy and rulemaking activities, user information
services, and international activities.'' \91\ The NPRM proposes no new
changes in the Commission's methodology, but does seek comment on the
following. (i) As Direct Broadcast Satellites (DBS), along with other
Multichannel Video Programming Distributors (MVPDs), receive oversight
and regulation by Media Bureau FTEs in, e.g., the implementation of the
Commercial Advertisement Loudness Mitigation Act (CALM Act),\92\ the
Twenty-First Century Communications and Video Accessibility Act of 2010
(CVAA),\93\ and the Satellite Television Extension and Localism Act
(STELA) Reauthorization Act of 2014 (STELAR), the NPRM proposes an
increase in the DBS fee rate to 27 cents per DBS subscriber. (ii) As
radio stations expand in ever increasing large markets, the population
threshold of ``greater than 3,000,000'' is no longer an adequate
threshold. As a result, the NPRM proposes to raise the population
threshold of broadcasters to ``greater than 6,000,000'' to reflect
increases in the population in major broadcast markets. In addition,
the Commission also proposes to adjust the fee rates of television
stations to reflect a higher proportional fee for large markets
compared to medium and smaller markets. (iii) The Commission seeks
comment on how providers of international bearer circuits should count
their circuits to maintain consistency across all carriers to ensure
that all providers are calculating and reporting IBCs in the same
manner. (iv) The Commission received a proposal from ITTA to combine
CMRS and ITSP revenues together for the purpose of determining a single
regulatory fee rate for the CMRS and ITSP regulatory fee categories.
After reviewing ITTA's proposal, the Commission tentatively concludes
not to combine wireless and interstate revenues, add a subcategory for
CMRS in the ITSP fee category, or reallocate Wireline Competition
Bureau FTEs to the Wireless Telecommunications Bureau for the purpose
of calculating regulatory fees. The Commission does, however, seek
comment on regulatory fee reform, including the reallocation of direct
FTEs, including those FTEs working on universal service and numbering
issues. (v) Finally, the Commission seeks comment on increasing earth
station fees relative to space station fees.
---------------------------------------------------------------------------
\91\ 47 U.S.C. 159(a).
\92\ See Implementation of the Commercial Advertisement,
Loudness Mitigation (CALM) Act, Report and Order, 26 FCC Rcd 17222
(2011) (CALM Act Report and Order).
\93\ Public Law Number 111-260, 124 Stat. 2751 (2010). See also
Amendment of Twenty-First Century Communications and Video
Accessibility Act of 2010, Public Law Number 111-265, 124 Stat. 2795
(2010) (making corrections to the CVAA); 47 CFR part 79.
---------------------------------------------------------------------------
B. Legal Basis
3. This action, including publication of proposed rules, is
authorized under sections (4)(i) and (j), 9, and 303(r) of the
Communications Act of 1934, as amended.\94\
---------------------------------------------------------------------------
\94\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
---------------------------------------------------------------------------
C. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply
4. The RFA directs agencies to provide a description of, and where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules and policies, if adopted.\95\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \96\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\97\ 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.\98\
---------------------------------------------------------------------------
\95\ 5 U.S.C. 603(b)(3).
\96\ 5 U.S.C. 601(6).
\97\ 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.''
\98\ 15 U.S.C. 632.
---------------------------------------------------------------------------
5. Small Entities. Our actions, over time, may affect small
entities that are not easily categorized at present. We therefore
describe here, at the outset, three comprehensive small entity size
standards that could be directly affected by the proposals under
consideration.\99\ As of 2009, small businesses represented 99.9
percent of the 27.5 million businesses in the United States, according
to the SBA.\100\ In addition, a
[[Page 35694]]
``small organization is generally any not-for-profit enterprise which
is independently owned and operated and not dominant in its field.\101\
Nationwide, as of 2007, there were approximately 1,621,215 small
organizations.\102\ In addition, the term ``small governmental
jurisdiction'' is defined generally as ``governments of cities, towns,
townships, villages, school districts, or special districts, with a
population of less than fifty thousand.'' \103\ Census Bureau data for
2011 indicate that there were 90,056 local governmental jurisdictions
in the United States.\104\ We estimate that, of this total, as many as
89,327 entities may qualify as ``small governmental jurisdictions.''
\105\ Thus, we estimate that most local government jurisdictions are
small. Finally, small entities may include Responsible Organizations
(RespOrgs), which are entities chosen by toll free subscribers to
manage and administer the appropriate records in the toll free Service
Management System for the toll free subscriber.\106\ Although RespOrgs
are often wireline carriers, they can also include other non-carrier
entities. Please refer to each group that is acting as a RespOrg
identified in this section of the IRFA. From the data on the SMS/800
Web site,\107\ we estimate that there are approximately 459 RespOrgs,
and applying the size standard of 1500 employees is appropriate because
most RespOrgs at this time, are wireline-based or wireless-based. We
believe that the majority of RespOrgs are small entities under that
size standard.\108\
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\99\ See 5 U.S.C. 601(3)-(6).
\100\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at https://www.sba.gov/faqs/faqindex.cfm?arealD=24.
\101\ 5 U.S.C. 601(4).
\102\ See Independent Sector, The New Nonprofit Almanac and Desk
Reference (2010).
\103\ 5 U.S.C. 601(5).
\104\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at http.www.sba.gov/sites/default/files.FAQMarch201_O.pdf.
\105\ The 2011 Census Data for small governmental organizations
are not presented based on the size of the population in each
organization. As stated above, there were 90,056 local governmental
organizations in 2011. As a basis for estimating how many of these
90,056 local organizations were small, we note that there were a
total of 729 cities and towns (incorporated places and civil
divisions) with populations over 50,000. See https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk. If we subtract the 729 cities and towns
that exceed the 50,000 population threshold, we conclude that
approximately 789,237 are small.
\106\ 47 CFR 52.101(b).
\107\ https://www.somos.com/. SMS/800, Inc. is now Somos, Inc.
\108\ See, e.g., 13 CFR 121.101; NAICS Code 517110; NAICS Code
517210. For purposes of this IRFA, because a substantial percentage
of RespOrgs are wireless-based or wireline-based, the standard size
applicable to these carriers is referenced.
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6. Wired Telecommunications Carriers. The U.S. Census Bureau
defines this industry as ``establishments primarily engaged in
operating and/or providing access to transmission facilities and
infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired communications
networks. Transmission facilities may be based on a single technology
or a combination of technologies. Establishments in this industry use
the wired telecommunications network facilities that they operate to
provide a variety of services, such as wired telephony services,
including VoIP services, wired (cable) audio and video programming
distribution, and wired broadband internet services. By exception,
establishments providing satellite television distribution services
using facilities and infrastructure that they operate are included in
this industry.'' \109\ 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.\110\ 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.\111\ Thus, under
this size standard, the majority of firms in this industry can be
considered small.
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\109\ See https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\110\ See 13 CFR 120.201, NAICS Code 517110.
\111\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5 &prodType= table.
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7. Local Exchange Carriers (LECs). Neither the Commission nor the
SBA has developed a size standard for small businesses specifically
applicable to local exchange services. The closest applicable NAICS
Code category is for Wired Telecommunications Carriers as defined in
paragraph 6 of this IRFA. Under that size standard, such a business is
small if it has 1,500 or fewer employees.\112\ According to census data
from 2007, there were 3,188 establishments that operated that year. Of
this total, 3,144 operated with fewer than 1,000 employees.\113\ The
Commission estimates that most providers of local exchange service are
small entities that may be affected by the rules and policies proposed
in the NPRM.
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\112\ 13 CFR 121.201, NAICS code 517110.
\113\ See id.
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8. Incumbent LECs. Neither the Commission nor the SBA has developed
a small business size standard specifically for incumbent local
exchange services. The closest applicable NAICS Code category is Wired
Telecommunications Carriers, as defined in paragraph 6 of this IRFA.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\114\ According to census data from 2007, 3,188 firms
operated in that year. Of this total, 3,144 operated with fewer than
1,000 employees.\115\ According to the Industry Analysis Branch of the
Wireline Competition Bureau, 1,307 carriers reported that they were
incumbent local exchange service providers.\116\ Of this total of 1,307
incumbent local exchange service providers, an estimated 1,006 operated
with 1,500 or fewer employees \117\ Consequently, the Commission
estimates that most providers of incumbent local exchange service are
small businesses that may be affected by the rules and policies
proposed in the NPRM.
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\114\ 13 CFR 121.201, NAICS code 517110.
\115\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5 &prodType= table.
\116\ 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).
\117\ See id.
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9. Competitive Local Exchange Carriers (Competitive LECs),
Competitive Access Providers (CAPs), Shared-Tenant Service Providers,
and Other Local Service Providers. Neither the Commission nor the SBA
has developed a small business size standard specifically for these
service providers. The appropriate NAICS Code category is Wired
Telecommunications Carriers, as defined in paragraph 6 of this IRFA.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\118\ 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.\119\ 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 the Commission's Industry Analysis Division of
the Wireline Competition Bureau data, 1,442 carriers reported that they
were engaged in the provision of either competitive local exchange
services or competitive access provider services.\120\ Of these 1,442
carriers, an estimated 1,256 have 1,500 or fewer employees. In
addition, 17 carriers have reported that
[[Page 35695]]
they are Shared-Tenant Service Providers, and all 17 are estimated to
have 1,500 or fewer employees.\121\ In addition, 72 carriers have
reported that they are Other Local Service Providers.\122\ Of this
total, 70 have 1,500 or fewer employees.\123\ Consequently, the
Commission estimates that most providers of competitive local exchange
service, competitive access providers, Shared-Tenant Service Providers,
and Other Local Service Providers are small entities that may be
affected by rules adopted pursuant to the proposals in this NPRM.
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\118\ 13 CFR 121.201, NAICS code 517110.
\119\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=%20table.
\120\ See Trends in Telephone Service, at Table 5.3.
\121\ Id.
\122\ Id.
\123\ Id.
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10. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA has developed a definition for Interexchange Carriers. The closest
NAICS Code category is Wired Telecommunications Carriers as defined in
paragraph 6 of this IRFA. The applicable size standard under SBA rules
is that such a business is small if it has 1,500 or fewer
employees.\124\ According to Commission's Industry Analysis Division of
the Wireline Competition Bureau data, 359 companies reported that their
primary telecommunications service activity was the provision of
interexchange services.\125\ Of this total, an estimated 317 have 1,500
or fewer employees and 42 have more than 1,500 employees.\126\
Consequently, the Commission estimates that the majority of
interexchange service providers are small entities that may be affected
by rules adopted pursuant to the NPRM.
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\124\ 13 CFR 121.201, NAICS code 517110.
\125\ See Trends in Telephone Service, at Table 5.3.
\126\ Id.
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11. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business size standard specifically for
prepaid calling card providers. The appropriate NAICS Code category for
prepaid calling card providers is Telecommunications Resellers. This
industry comprises establishments engaged in purchasing access and
network capacity from owners and operators of telecommunications
networks and reselling wired and wireless telecommunications services
(except satellite) to businesses and households. Mobile virtual
networks operators (MVNOs) are included in this industry.\127\ Under
the applicable SBA size standard, such a business is small if it has
1,500 or fewer employees.\128\ 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.\129\ 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's Industry Analysis Division of the
Wireline Competition Bureau data, 193 carriers have reported that they
are engaged in the provision of prepaid calling cards.\130\ All 193
carriers have 1,500 or fewer employees.\131\ Consequently, the
Commission estimates that the majority of prepaid calling card
providers are small entities that may be affected by rules adopted
pursuant to the NPRM.
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\127\ https://www.census.gov/cgi-bin/ssd/naics/naicsrch.
\128\ 13 CFR 121.201, NAICS code 517911.
\129\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\130\ See Trends in Telephone Service, at Table 5.3.
\131\ Id.
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12. Local Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees.\132\ 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.\133\ Under this category and the associated
small business size standard, the majority of these local resellers can
be considered small entities. According to Commission's Industry
Analysis Division of the Wireline Competition Bureau data, 213 carriers
have reported that they are engaged in the provision of local resale
services.\134\ Of this total, an estimated 211 have 1,500 or fewer
employees.\135\ Consequently, the Commission estimates that the
majority of local resellers are small entities that may be affected by
rules adopted pursuant to the proposals in this NPRM.
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\132\ 13 CFR 121.201, NAICS code 517911.
\133\ Id.
\134\ See Trends in Telephone Service, at Table 5.3.
\135\ Id.
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13. Toll Resellers. The Commission has not developed a definition
for Toll Resellers. The closest NAICS Code Category is
Telecommunications Resellers, and the SBA has developed a small
business size standard for the category of Telecommunications
Resellers. Under that size standard, such a business is small if it has
1,500 or fewer employees.\136\ 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.\137\ Thus, under this
category and the associated small business size standard, the majority
of these resellers can be considered small entities. According to
Commission's Industry Analysis Division of the Wireline Competition
Bureau data, 881 carriers have reported that they are engaged in the
provision of toll resale services.\138\ Of this total, an estimated 857
have 1,500 or fewer employees.\139\ Consequently, the Commission
estimates that the majority of toll resellers are small entities that
may be affected by our proposals in the NPRM.
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\136\ 13 CFR 121.201, NAICS code 517911.
\137\ Id.
\138\ Trends in Telephone Service, at Table 5.3.
\139\ Id.
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14. Other Toll Carriers. Neither the Commission nor the SBA has
developed a size standard for small businesses specifically applicable
to Other Toll Carriers. This category includes toll carriers that do
not fall within the categories of interexchange carriers, operator
service providers, prepaid calling card providers, satellite service
carriers, or toll resellers. The closest applicable NAICS Code category
is for Wired Telecommunications Carriers, as defined in paragraph 6 of
this IRFA. Under that size standard, such a business is small if it has
1,500 or fewer employees.\140\ 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.\141\ Thus, under this category and the
associated small business size standard, the majority of Other Toll
Carriers can be considered small. According to Commission's Industry
Analysis Division of the Wireline Competition Bureau data, 284
companies reported that their primary telecommunications service
activity was the provision of other toll carriage.\142\ Of these, an
estimated 279 have 1,500 or fewer employees.\143\ Consequently, the
Commission estimates that most Other Toll Carriers are small entities
that may be affected by the rules adopted pursuant to the NPRM.
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\140\ 13 CFR 121.201, NAICS code 517110.
\141\ Id.
\142\ Trends in Telephone Service, at Table 5.3.
\143\ Id.
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15. Wireless Telecommunications Carriers (except Satellite). This
industry comprises establishments engaged in operating and maintaining
switching and transmission facilities to provide communications via the
airwaves, such as cellular services, paging services, wireless Internet
access, and wireless video services.\144\ The appropriate size
[[Page 35696]]
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's Industry Analysis Division of the Wireline
Competition Bureau 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.\145\ Of this total, an estimated 261 have 1,500 or
fewer employees.\146\ 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 and may be affected by rules adopted pursuant to this
NPRM.
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\144\ NAICS Code 517210. See https://www.census.gov/cgi-bin/ssd/naics/naiscsrch.
\145\ Trends in Telephone Service, at Table 5.3.
\146\ Id.
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16. Television Broadcasting. This Economic Census category
``comprises establishments primarily engaged in broadcasting images
together with sound. These establishments operate television
broadcasting studios and facilities for the programming and
transmission of programs to the public.'' \147\ The SBA has created the
following small business size standard for Television Broadcasting
firms: those having $14 million or less in annual receipts.\148\ The
Commission has estimated the number of licensed commercial television
stations to be 1,387.\149\ In addition, according to Commission staff
review of the BIA Advisory Services, LLC's Media Access Pro Television
Database on March 28, 2012, about 950 of an estimated 1,300 commercial
television stations (or approximately 73 percent) had revenues of $14
million or less.\150\ We therefore estimate that the majority of
commercial television broadcasters are small entities.
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\147\ U.S. Census Bureau, 2007 NAICS Definitions, ``515120
Television Broadcasting'' (partial definition); https://www.census.gov/naics/2007/def/ND515120.HTM#N515120.
\148\ 13 CFR 121.201, NAICS code 515120 (updated for inflation
in 2010).
\149\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
\150\ We recognize that BIA's estimate differs slightly from the
FCC total given supra.
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17. We note, however, that in assessing whether a business concern
qualifies as small under the above definition, business (control)
affiliations \151\ must be included. Our estimate, therefore, likely
overstates the number of small entities that might be affected by our
action, because the revenue figure on which it is based does not
include or aggregate revenues from affiliated companies. In addition,
an element of the definition of ``small business'' is that the entity
not be dominant in its field of operation. We are unable at this time
to define or quantify the criteria that would establish whether a
specific television station is dominant in its field of operation.
Accordingly, the estimate of small businesses to which rules may apply
does not exclude any television station from the definition of a small
business on this basis and is therefore possibly over-inclusive to that
extent.
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\151\ ``[Business concerns] are affiliates of each other when
one concern controls or has the power to control the other or a
third party or parties controls or has to power to control both.''
13 CFR 21.103(a)(1).
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18. In addition, the Commission has estimated the number of
licensed noncommercial educational (NCE) television stations to be
396.\152\ These stations are non-profit, and therefore considered to be
small entities.\153\ There are also 2,528 low power television
stations, including Class A stations (LPTV).\154\ Given the nature of
these services, we will presume that all LPTV licensees qualify as
small entities under the above SBA small business size standard.
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\152\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
\153\ See generally 5 U.S.C. 601(4), (6).
\154\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
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19. Radio Broadcasting. This Economic Census category ``comprises
establishments primarily engaged in broadcasting aural programs by
radio to the public. Programming may originate in their own studio,
from an affiliated network, or from external sources. \155\ The SBA has
established a small business size standard for this category, which is:
Such firms having $7 million or less in annual receipts.\156\ According
to Commission staff review of BIA Advisory Services, LLC's Media Access
Pro Radio Database on March 28, 2012, about 10,759 (97%) of 11,102
commercial radio stations had revenues of $7 million or less.
Therefore, the majority of such entities are small entities.
---------------------------------------------------------------------------
\155\ U.S. Census Bureau, 2007 NAICS Definitions, ``515112 Radio
Stations''; https://www.census.gov/naics/2007/def/ND515112.HTM#N515112.
\156\ 13 CFR 121.201, NAICS code 515112 (updated for inflation
in 2010).
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20. We note, however, that in assessing whether a business concern
qualifies as small under the above size standard, business affiliations
must be included.\157\ In addition, to be determined to be a ``small
business,'' the entity may not be dominant in its field of
operation.\158\ We note that it is difficult at times to assess these
criteria in the context of media entities, and our estimate of small
businesses may therefore be over-inclusive.
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\157\ ``Concerns and entities are affiliates of each other when
one controls or has the power to control the other, or a third party
or parties controls or has the power to control both. It does not
matter whether control is exercised, so long as the power to control
exists.'' 13 CFR 121.103(a)(1) (an SBA regulation).
\158\ 13 CFR 121.102(b) (an SBA regulation).
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21. Cable Television and other Subscription Programming.\159\ Since
2007, these services have been defined within the broad economic census
category of Wired Telecommunications Carriers. That category is defined
as follows: ``This industry comprises establishments primarily engaged
in operating and/or providing access to
[[Page 35697]]
transmission facilities and infrastructure that they own and/or lease
for the transmission of voice, data, text, sound, and video using wired
telecommunications networks. Transmission facilities may be based on a
single technology or a combination of technologies.'' \160\ The SBA has
developed a small business size standard for this category, which is:
all such firms having 1,500 or fewer employees.\161\ 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.\162\ Thus under this size
standard, the majority of firms offering cable and other program
distribution services can be considered small and may be affected by
rules adopted pursuant to the NPRM.
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\159\ In 2014, ``Cable and Other Subscription Programming,''
NAICS Code 515210, replaced a prior category, now obsolete, which
was called ``Cable and Other Program Distribution.'' Cable and Other
Program Distribution, prior to 2014, were placed under NAICS Code
517110, Wired Telecommunications Carriers. Wired Telecommunications
Carriers is still a current and valid NAICS Code Category. Because
of the similarity between ``Cable and Other Subscription
Programming'' and ``Cable and other Program Distribution,'' we will,
in this proceeding, continue to use Wired Telecommunications Carrier
data based on the U.S. Census. The alternative of using data
gathered under Cable and Other Subscription Programming (NAICS Code
515210) is unavailable to us for two reasons. First, the size
standard established by the SBA for Cable and Other Subscription
Programming is annual receipts of $38.5 million or less. Thus to use
the annual receipts size standard would require the Commission
either to switch from existing employee based size standard of 1,500
employees or less for Wired Telecommunications Carriers, or else
would require the use of two size standards. No official approval of
either option has been granted by the Commission as of the time of
the release of the Notice. 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
operatin6 in this category in 2012. Hence the data do not provide
any basis for determining, for either year, how many businesses were
small because they had annual receipts of $38.5 million or less.
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51I2&prodType=table.
\160\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition), (full definition
stated in para. 6 of this IRFA) available at https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\161\ 13 CFR 121.201, NAICS code 517110.
\162\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=Table">https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=Table.
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22. 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.\163\ Industry data
indicate that there are currently 4,600 active cable systems in the
United States.\164\ Of this total, all but ten cable operators
nationwide are small under the 400,000-subscriber size standard.\165\
In addition, under the Commission's rate regulation rules, a ``small
system'' is a cable system serving 15,000 or fewer subscribers.\166\
Current Commission records show 4,600 cable systems nationwide.\167\ 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.\168\ Thus, under this standard as well, the Commission
estimates that most cable systems are small entities.
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\163\ 47 CFR 76.901(e).
\164\ 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.
\165\ See SNL KAGAN at www.snl.com/interactiveX/top cableMSOs
aspx?period2015Q1&sortcol=subscribersbasic&sortorder=desc.
\166\ 47 CFR 76.901(c).
\167\ See footnote 2, supra.
\168\ August 5, 2015 report from the Media Bureau based on its
research in COALS. See www.fcc.gov/coals.
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23. 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 revenues in the
aggregate exceed $250,000,000 are approximately 52,403,705 cable video
subscribers in the United States today.\169\ 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.\170\
Based on available data, we find that all but nine incumbent cable
operators are small entities under this size standard.\171\ 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.\172\ 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.
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\169\ See SNL KAGAN at www.snl.com/interactivex/MultichannelIndustryBenchmarks.aspx.
\170\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\171\ See SNL KAGAN at www.snl.com/Interactivex/TopCableMSOs.aspx.
\172\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's
finding that the operator does not qualify as a small cable operator
pursuant to section 76.901(f) of the Commission's rules. See 47 CFR
76.901(f).
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24. Direct Broadcast Satellite (DBS) Service. DBS Service is a
nationally distributed subscription service that delivers video and
audio programming via satellite to a small parabolic dish antenna at
the subscriber's location. DBS is now included in SBA's economic census
category ``Wired Telecommunications Carriers.'' The Wired
Telecommunications Carriers industry comprises establishments primarily
engaged in operating and/or providing access to transmission facilities
and infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired telecommunications
networks. Transmission facilities may be based on a single technology
or 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.\173\ The SBA determines that a wireline business is
small if it has fewer than 1500 employees.\174\ Census data for 2007
indicate that 3,188 wireline companies were operational during that
year. Of that number, 3,144 operated with fewer than 1,000
employees.\175\ Based on that data, we conclude that the majority of
wireline firms are small under the applicable standard. However,
currently only two entities provide DBS service, which requires a great
deal of capital for operation: DIRECTV (now owned by AT&T) and DISH
Network.\176\ DIRECTV and DISH Network each report annual revenues that
are in excess of the threshold for a small business. Accordingly, we
must conclude that internally developed FCC data are persuasive that in
general DBS service is provided only by large firms.
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\173\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\174\ NAICs CODE 517110; 13.CFR 121.201.
\175\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\176\ See 15th Annual Video Competition Report, 28 FCC Rcd at
1057, Section 27. As of June 2012, DIRECTV is the largest DBS
operator and the second largest MVPD in the United States, serving
19.9 million subscribers. DISH Network is the second largest DBS
operator and the third largest MVPD operator, serving 14 million
subscribers. Id. at 10507, 10546, section 27, 110-11.
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25. 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.\177\ The SBA has
developed a small business size standard for ``All Other
Telecommunications,'' which consists of all such firms with gross
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annual receipts of $32.5 million or less.\178\ 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.\179\ Thus, a majority of ``All Other
Telecommunications'' firms potentially affected by the proposals in the
NPRM can be considered small.
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\177\ https://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
\178\ 13 CFR 121.201; NAICs Code 517919.
\179\ https://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2007_US.51SSSZ4&prodType=table.
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D. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
26. This NPRM does not propose any changes to the Commission's
current information collection, reporting, recordkeeping, or compliance
requirements.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
27. 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.\180\
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\180\ 5 U.S.C. 603(c)(1)-(c)(4).
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28. This NPRM seeks comment on the Commission's regulatory fee
collection for Fiscal Year 2016, as required by Congress each year.
Specifically, we ask for comments each year in the Regulatory
Flexibility Analysis on how to minimize adverse economic impact,
imposed by our proposed rules, on small entities. The regulatory fees
proposed in this NPRM do not include any new fee categories. However,
the proposal in FY 2016 to revise the broadcasters' fee grid to include
a threshold ``greater than 6,000,000'', and a change in the television
fee amounts so that large markets pay a higher proportional fee than
small and medium-sized markets, will provide some relief to small
broadcast and television entities. The increase in the de minimis
amount to $500 implemented in FY 2015 has already provided financial
relief to smaller entities.
F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
29. None.
VII. Ordering Clauses
30. Accordingly, it is ordered that, pursuant to sections 4(i) and
(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47
U.S.C. 154(i), 154(j), 159, and 303(r), this Notice of Proposed
Rulemaking is hereby adopted.
31. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Notice of Proposed Rulemaking, including the Initial
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of
the U.S. Small Business Administration.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2016-13087 Filed 6-2-16; 8:45 am]
BILLING CODE 6712-01-P