Assessment and Collection of Regulatory Fees for Fiscal Year 2016, 65926-65948 [2016-22216]
Download as PDF
<![CDATA[
65926
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
Minority Populations and Low-Income
Populations’’ (59 FR 7629, February 16,
1994).
F. National Technology Transfer and
Advancement Act (NTTAA)
This action does not involve any
technical standards that would require
Agency consideration of voluntary
consensus standards pursuant to section
12(d) of the NTTAA, 15 U.S.C. 272 note.
V. Congressional Review Act (CRA)
This action is subject to the CRA, 5
U.S.C. 801 et seq., and EPA will submit
a rule report to each House of the
Congress and to the Comptroller General
of the United States. This action is not
a ‘‘major rule’’ as defined by 5 U.S.C.
804(2).
List of Subjects in 40 CFR Part 711
Environmental protection, Chemicals,
Confidential Business Information (CBI),
Hazardous materials, Importer,
Manufacturer, Reporting and
recordkeeping requirements.
Dated: September 16, 2016.
Jim Jones,
Assistant Administrator, Office of Chemical
Safety and Pollution Prevention.
Therefore, 40 CFR chapter I is
amended as follows:
PART 711—[AMENDED]
1. The authority citation for part 711
continues to read as follows:
■
Authority: 15 U.S.C. 2607(a).
2. In § 711.20, revise the second and
third sentences to read as follows.
■
§ 711.20
When to report.
* * * The 2016 CDR submission
period is from June 1, 2016 to October
31, 2016. Subsequent recurring
submission periods are from June 1 to
September 30 at 4-year intervals,
beginning in 2020.* * *
[FR Doc. 2016–22974 Filed 9–23–16; 8:45 am]
Regulatory Fees to recover an 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 for annual ‘‘Mandatory
Adjustments’’ and ‘‘Permitted
Amendments’’ to the Schedule of
Regulatory Fees.
DATES: Effective September 26, 2016. To
avoid penalties and interest, regulatory
fees should be paid by the due date of
September 27, 2016.
FOR FURTHER INFORMATION CONTACT:
Roland Helvajian, Office of Managing
Director at (202) 418–0444.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Report
and Order (R&O), FCC 16–121, MD
Docket No. 16–166, adopted on
September 1, 2016 and released on
September 2, 2016.
I. Administrative Matters
A. Final Regulatory Flexibility Analysis
1. As required by the Regulatory
Flexibility Act of 1980 (RFA),1 the
Commission has prepared a Final
Regulatory Flexibility Analysis (FRFA)
relating to this Report and Order. The
FRFA is located towards the end of this
document.
B. Final Paperwork Reduction Act of
1995 Analysis
2. This document does not contain
new or modified information collection
requirements subject to the Paperwork
Reduction Act of 1995 (PRA), Public
Law 104–13. In addition, therefore, it
does not contain any new or modified
information collection burden for small
business concerns with fewer than 25
employees, pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 44 U.S.C.
3506(c)(4).
C. Congressional Review Act
FEDERAL COMMUNICATIONS
COMMISSION
3. The Commission will send a copy
of this Report and Order to Congress
and the Government Accountability
Office pursuant to the Congressional
Review Act, 5 U.S.C. 801(a)(1)(A).
47 CFR Part 1
II. Introduction
BILLING CODE 6560–50–P
mstockstill on DSK3G9T082PROD with RULES
[MD Docket No. 16–166; FCC 16–121]
Assessment and Collection of
Regulatory Fees for Fiscal Year 2016
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
In this document the
Commission revises its Schedule of
SUMMARY:
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
4. This Report and Order adopts a
schedule of regulatory fees to assess and
collect $384,012,497.00 in regulatory
fees for Fiscal Year (FY) 2016, pursuant
1 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601–
612, has been amended by the Small Business
Regulatory Enforcement Fairness Act of 1996
(SBREFA), Public Law 104–121, Title II, 110 Stat.
847 (1996). The SBREFA was enacted as Title II of
the Contract with America Advancement Act of
1996 (CWAAA).
PO 00000
Frm 00074
Fmt 4700
Sfmt 4700
to Section 9 of the Communications Act
of 1934, as amended (Communications
Act or Act) and the Commission’s FY
2016 Appropriation.2 The schedule of
regulatory fees for FY 2016 adopted here
is attached in Table 4. These regulatory
fees are due on September 27, 2016. The
FY 2016 regulatory fees are based on the
proposals in the FY 2016 NPRM,3
considered in light of the comments
received and Commission analysis. The
FY 2016 regulatory fee schedule
includes the following changes from last
year: (1) An increase in regulatory fees
across all fee categories to offset the
Commission’s facilities reduction
costs; 4 (2) an updated regulatory fee for
Direct Broadcast Satellite (DBS)
providers, a subcategory in the cable
television and Internet Protocol
Television (IPTV) category; and (3)
adjustments to the regulatory fees on
radio and television broadcasters, based
on type and class of service and on the
population served.
III. Background
5. Congress adopted a regulatory fee
schedule in 1993 5 and authorized the
Commission to assess and collect
annual regulatory fees pursuant to the
schedule, as amended by the
Commission.6 As a result, the
Commission annually reviews the
regulatory fee schedule, proposes
changes to the schedule to reflect
changes in the amount of its
appropriation, and proposes increases
or decreases to the schedule of
regulatory fees.7 The Commission makes
changes to the regulatory fee schedule
‘‘if the Commission determines that the
schedule requires amendment to
comply with the requirements’’ 8 of
section 9(b)(1)(A) of the Act.9 The
Commission may also add, delete, or
reclassify services in the fee schedule to
reflect additions, deletions, or changes
in the nature of its services ‘‘as a
consequence of Commission rulemaking
proceedings or changes in law.’’ Thus,
2 47 U.S.C. 159. Consolidated Appropriations Act,
2016, Public Law 114–113, Dec. 18, 2015.
3 Assessment and Collection of Regulatory Fees
for Fiscal Year 2016, Notice of Proposed
Rulemaking, 81 FR 35680 (June 3, 2016) (2016) (FY
2016 NPRM).
4 The proposed regulatory fee rates for FY 2016
includes a one-time amount of $44,168,497 to offset
facilities reduction costs, i.e., to reduce the office
space footprint and/or move the FCC office location
if necessary. Consolidated Appropriations Act,
2016, Public Law 114–113, Dec. 18, 2015. See FCC’s
Lease Prospectus, available at https://www.gsa.gov/
portal/category/100435.
5 47 U.S.C. 159(g) (showing original fee schedule
prior to Commission amendment).
6 47 U.S.C. 159.
7 47 U.S.C. 159(b)(1)(B).
8 47 U.S.C. 159(b)(2).
9 47 U.S.C. 159(b)(1)(A).
E:\FR\FM\26SER1.SGM
26SER1
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
for each fiscal year, the Commission
proposes a fee schedule in the annual
Notice of Proposed Rulemaking that
reflects changes in the amount
appropriated for the performance of the
Commission’s regulatory activities,
changes in the industries represented by
the regulatory fee payors, changes in
FTE 10 levels, and any other issues of
relevance to the proposed fee
schedule.11 After reviewing the
comments, the Commission issues a
Report and Order adopting the fee
schedule for the fiscal year and sets out
the procedures for payment of fees.
6. The Commission calculates the fees
by first determining the number of FTEs
performing the regulatory activities
specified in section 9(a), ‘‘adjusted to
take into account factors that are
reasonably related to the benefits
provided to the payor of the fee by the
Commission’s activities. . . .’’ 12 FTEs
are categorized as ‘‘direct’’ if they are
performing regulatory activities in one
of the ‘‘core’’ bureaus, i.e., the Wireless
Telecommunications Bureau, Media
Bureau, Wireline Competition Bureau,
and part of the International Bureau. All
other FTEs are considered ‘‘indirect.’’ 13
The total FTEs for each fee category is
calculated by counting the number of
direct FTEs in the core bureau that
regulates that category, plus a
proportional allocation of indirect FTEs.
Next, the Commission allocates the total
amount to be collected among the
various regulatory fee categories. This
allocation is based on the number of
mstockstill on DSK3G9T082PROD with RULES
10 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.
11 Section 9(b)(2) discusses mandatory
amendments to the fee schedule and Section 9(b)(3)
discusses permissive amendments to the fee
schedule. Both mandatory and permissive
amendments are not subject to judicial review. 47
U.S.C. 159(b)(2) and (3).
12 47 U.S.C. 159(b)(1)(A). When section 9 was
adopted, the total FTEs were to be calculated based
on the number of FTEs in the Private Radio Bureau,
Mass Media Bureau, and Common Carrier Bureau.
(The names of these bureaus were subsequently
changed.) Satellites, earth stations, and
international bearer circuits were regulated through
the Common Carrier Bureau before the International
Bureau was created.
13 The indirect FTEs are the employees from the
International Bureau (in part), Enforcement Bureau,
Consumer & Governmental Affairs Bureau, Public
Safety & Homeland Security Bureau, Chairman and
Commissioners’ offices, Office of the Managing
Director, Office of General Counsel, Office of the
Inspector General, Office of Communications
Business Opportunities, Office of Engineering and
Technology, Office of Legislative Affairs, Office of
Strategic Planning and Policy Analysis, Office of
Workplace Diversity, Office of Media Relations, and
Office of Administrative Law Judges, totaling 1,046
indirect FTEs.
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
FTEs assigned to work in each
regulatory fee category. Each regulatee
within a fee category pays its
proportionate share based on an
objective measure, e.g., revenues,
number of subscribers, or licenses.14
7. As part of its annual review, the
Commission regularly seeks to improve
its regulatory fee analysis.15 For
example, in FY 2013, the Commission
updated FTE allocations to more
accurately reflect the number of FTEs
working on regulation and oversight of
the regulatees in the various fee
categories, and now updates the FTE
allocations annually; 16 combined the
UHF and VHF television stations into
one regulatory fee category; 17 and
included IPTV in the cable television
fee category.18 In FY 2014, we adopted
a new fee category for toll free numbers,
in the ITSP fee category; 19 increased the
de minimis threshold; 20 and eliminated
several categories from the regulatory
fee schedule.21 In FY 2015, we added a
subcategory for DBS providers in the
cable television and IPTV regulatory fee
category.22
8. In our FY 2016 NPRM, we proposed
to collect $384,012,497.00 in regulatory
fees and included a detailed, proposed
fee schedule. We received 17 comments
and 10 reply comments.23
65927
Communications Act and our FY 2016
appropriation statute in order to collect
$384,012,497.00 in regulatory fees.24 Of
this amount, we project approximately
$21.3 million (5.6 percent of the total
FTE allocation) in fees from the
International Bureau regulatees; 25 $83.1
million (21.6 percent of the total FTE
allocation) in fees from the Wireless
Telecommunications Bureau
regulatees; 26 $146.5 million (38.0
percent of the total FTE allocation) from
Wireline Competition Bureau
regulatees; 27 and $134.0 million (34.8
percent of the total FTE allocation) from
the Media Bureau regulatees.28 These
regulatory fees are due on September 27,
2016. The schedule of regulatory fees for
FY 2016 adopted here is attached as
Table 4.
1. Facilities Reduction
IV. Discussion
9. In this FY 2016 Report and Order,
we adopt a regulatory fee schedule for
FY 2016, pursuant to section 9 of the
10. The 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 costs, i.e., to
reduce the FCC’s office space footprint
and/or move the FCC office location.29
Due to the facilities reduction costs,
regulatees’ aggregate fees by category
increased on average by approximately
11–13 percent for 2016. Some
commenters disagree with this
approach.30 We are, however, required
by Congress to collect this amount for
FY 2016.31
14 See Assessment and Collection of Regulatory
Fees, Notice of Proposed Rulemaking, 27 FCC Rcd
8458, 8461–62, paragraphs 8–11 (2012) (FY 2012
NPRM).
15 See Assessment and Collection of Regulatory
Fees for Fiscal Year 2008, MD Docket No. 08–65,
Report and Order and Further Notice of Proposed
Rulemaking, 24 FCC Rcd 6388 (2008) (FY 2008
Further Notice).
16 Assessment and Collection of Regulatory Fees
for Fiscal Year 2013, MD Docket No. 08–65, Report
and Order, 28 FCC Rcd 12351, 12354–58,
paragraphs 10–20 (2013) (FY 2013 Report and
Order).
17 FY 2013 Report and Order, 28 FCC Rcd at
12361–62, paragraphs 29–31.
18 Id., 28 FCC Rcd at 12362–63, paragraphs 32–
33.
19 Assessment and Collection of Regulatory Fees
for Fiscal Year 2014, Report and Order and Further
Notice of Proposed Rulemaking, 29 FCC Rcd 10767,
10777–79, paras. 25–28 (2014) (FY 2014 Report and
Order).
20 FY 2014 Report and Order, 29 FCC Rcd at
10774–76, paragraphs 18–21.
21 Id., 29 FCC Rcd at 10776–77, paragraphs 22–
24.
22 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, paragraphs 28–41 (2015) (FY
2015 NPRM). We also eliminated two additional fee
categories. See FY 2015 NPRM, 30 FCC Rcd at
5361–62, paragraphs 19–22.
23 Commenters to the FY 2016 NPRM are listed
in Table 2.
24 Section 9 regulatory fees are mandated by
Congress and collected to recover the regulatory
costs associated with the Commission’s
enforcement, policy and rulemaking, user
information, and international activities. 47 U.S.C.
159(a). See Consolidated Appropriations Act, 2016,
Public Law 114–113, Dec. 18, 2015, requiring the
Commission to collect, for FY 2016, $339,844,000
for operational expenses and an additional one time
amount of $44,168,497 to offset facilities reduction
costs.
25 Includes satellites, earth stations, and
international bearer circuits (submarine cable
systems and satellite and terrestrial bearer circuits).
26 Includes Commercial Mobile Radio Service
(CMRS), CMRS messaging, Broadband Radio
Service/Local Multipoint Distribution Service (BRS/
LMDS), and multi-year wireless licensees.
27 Includes Interstate Telecommunications
Service Providers (ITSP) and toll free numbers.
28 Includes AM radio, FM radio, television
(including low power and Class A, TV/FM
translators and boosters, cable and IPTV, DBS, and
Cable Television Relay Service (CARS) licenses.
29 Consolidated Appropriations Act, 2016, Public
Law 114–113, Dec. 18, 2015. See FCC’s Lease
Prospectus, available at https://www.gsa.gov/portal/
category/100435.
30 See, e.g., PMCM TV Comments at 2 (‘‘Congress
has never given the Commission a carte blanche to
recover all of its costs through the regulatory fee
mechanism.’’); AT&T Comments at 3 (‘‘This sum is
especially unsuitable for inclusion in the regulatory
fee request.’’).
31 Consolidated Appropriations Act, 2016, Public
Law 114–113, Dec. 18, 2015.
PO 00000
Frm 00075
Fmt 4700
Sfmt 4700
E:\FR\FM\26SER1.SGM
26SER1
65928
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
2. Toll Free Numbers
11. In the FY 2014 Report and
Order,32 we adopted a regulatory fee
category for each toll free number
managed by a RespOrg.33 In the FY 2015
Report and Order, we adopted a
regulatory fee of 12 cents per toll free
number.34 We proposed a regulatory fee
of 13 cents per toll free number in the
FY 2016 NPRM.35 AT&T objects to the
increase from 12 cents to 13 cents per
year, and contends that we have not
demonstrated increased regulatory
oversight of RespOrgs to justify this
increase.36 We identified in the FY 2016
NPRM that regulatory fees increased for
all regulatee categories due to the one
time increase for facilities reduction
costs,37 which includes a one cent fee
increase for toll free numbers. Pursuant
to our obligations under section 9 of the
Act and related Commission orders, we
therefore adopt the fee proposed in the
FY 2016 NPRM.38
3. International Bureau Issues
mstockstill on DSK3G9T082PROD with RULES
a. International Bearer Circuits
12. Facilities-based common carriers
must pay regulatory fees for terrestrial
and satellite International Bearer
Circuits (IBCs) active (used or leased) as
32 FY 2014 Report and Order, 29 FCC Rcd at
10777–79, paragraphs 25–28. We adopted this
category for working, assigned, and reserved toll
free numbers and for toll free numbers that are in
the ‘‘transit’’ status, or any other status as defined
in section 52.103 of the Commission’s rules. The
regulatory fee is limited to toll free numbers that are
accessible within the United States.
33 A Responsible Organization or RespOrg is a
company that manages toll free telephone numbers
for subscribers. RespOrgs use the SMS/800 database
to verify the availability of specific numbers and to
reserve the numbers for subscribers. See 47 CFR
52.101(b). Commission FTEs in the Wireline
Competition Bureau and the Enforcement Bureau
work on toll free numbering issues and other
related activities. As a result, the Commission
adopted a regulatory fee for each toll free number
controlled or managed by a RespOrg because many
toll free numbers are controlled or managed by
RespOrgs that are not carriers, and therefore, had
not been paying regulatory fees. In the FY 2014
Report and Order, we stated that: ‘‘Based on
evaluation, the FTEs involved in toll free issues are
primarily from the Wireline Competition Bureau.
. . . Accordingly, a regulatory fee assessed on toll
free numbers reduces the ITSP regulatory fee total.’’
FY 2014 Report and Order, 29 FCC Rcd at 10778,
paragraph 27 (footnote omitted).
34 Assessment and Collection of Regulatory Fees
for Fiscal Year 2015, Report and Order and Further
Notice of Proposed Rulemaking, 30 FCC Rcd 10268,
10271–72, para. 9 (2015) (FY 2015 Report and
Order).
35 FY 2016 NPRM, 81 FR 35680 at 35689, Table
3.
36 AT&T Comments at 4. Somos questions the
increase and observes that the Commission’s lease
after the move (or facilities reduction) should
decrease which should result in lower regulatory
fees in the future. Somos Comments at 2–3.
37 FY 2016 NPRM, 81 FR 35680, at 35683, note
20.
38 See supra note 23.
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
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.39 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.40 In the FY 2016 NPRM,
and previously in FY 2015 Report and
Order, we sought comment on how to
ensure that all providers calculate and
report IBCs in the same manner and
how we could improve our
requirements and regulatory treatment
of terrestrial and satellite IBC.41
13. We also sought comment on
whether to eliminate the distinction
between common carrier terrestrial
circuits and non-common carrier
terrestrial circuits for regulatory fee
purposes.42 In doing so, we observed the
telecommunications industry and
Commission’s rules have evolved. We
also sought comment on the least
burdensome methodology for
calculating fees, whether international
revenue rather than the number of
circuits would be a useful data source,
and asked how to ensure accurate
reporting of both common carrier and
non-common carrier terrestrial
circuits.43
14. Only Level 3 commented,
proposing that we revise our regulatory
fee methodology for terrestrial
international bearer circuits and adopt a
flat-fee methodology similar to the
method we use to assess fees for
submarine cable systems.44 This
proposal would include common carrier
39 See
infra paragraph 42.
40 Id.
41 FY 2016 NPRM, 81 FR 35680 at 35684,
paragraphs 20–21.
42 The Commission previously 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.’’ Assessment and Collection of Regulatory
Fees for Fiscal Year 2009, Report and Order, 24 FCC
Rcd 10301, 10306–307, paragraphs 16–17 (2009)
(FY 2009 Report and Order). 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,
paragraphs 13–17 (2009) (Submarine Cable Order).
43 FY 2016 NPRM, 81 FR at 35680, at 35685,
paragraph 21.
44 Level 3 Comments at 3 (citing Submarine Cable
Order).
PO 00000
Frm 00076
Fmt 4700
Sfmt 4700
and non–common carrier circuits.45
Level 3 contends that this would be
simpler to administer and would reduce
underreporting.46 We agree with Level 3
that there is need to evaluate the
changes in the international services
marketplace and update our fee
methodology to reflect the changes and
make it simpler and more efficient to
administer. We find, however, that the
record in this proceeding is insufficient
to make any comprehensive changes to
the fee methodology at this time.47 To
adequately evaluate the changes to the
marketplace, a separate rulemaking
proceeding to comprehensively review
the methodology used for assessing fees
for terrestrial and satellite international
bearer circuits is needed, including the
allocation of the international bearer
circuit fee category between terrestrial
and satellite circuits and submarine
cable systems. Accordingly, we make no
changes to fee rules governing the IBCs
based on the record in this proceeding.
b. Earth Stations
15. In the FY 2014 NPRM, we
recognized that the International
Bureau’s oversight and regulation of the
satellite industry involves FTEs working
on legal, technical, and policy issues
pertaining to both space station and
earth station operations and is therefore
interdependent to some degree.48 For
that reason, in the FY 2014 regulatory
fee proceeding, we increased the
regulatory fees paid by earth station
licensees by approximately 7.5 percent
based on analysis and review of the
record.49 In the FY 2015 NPRM, we
sought comment on whether to raise the
earth station regulatory fees again.50
However, we declined to adopt an
increase in fees in FY 2015 due to an
ongoing proceeding concerning part 25
(Satellite Communications) of the
Commission’s rules which could affect
the distribution of FTE work. In the FY
2016 NPRM, we sought comment on this
issue—specifically on EchoStar’s
proposal to assess different levels of
regulatory fees on different types of
earth station licenses.51
16. EchoStar now observes that since
it submitted its proposal, we have
adopted reforms that streamlined the
45 Id.
at 3, 5.
at 3–5. Level 3 explains that this proposal
would reduce the burden on payors. Id. at 5.
47 We received no comments in response to Level
3’s proposed methodology.
48 FY 2014 NPRM, 29 FCC Rcd at 6428, paragraph
29.
49 See FY 2014 Report and Order, 29 FCC Rcd at
10772–73, paragraph 12.
50 FY 2015 NPRM, 30 FCC Rcd at 5360, paragraph
14.
51 See EchoStar July 20, 2015 Ex Parte.
46 Id.
E:\FR\FM\26SER1.SGM
26SER1
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
reporting process for satellite earth
stations, which has addressed an
unequal reporting burden and reduced
administrative burdens.52 For this
reason, EchoStar contends that all
satellite earth stations should have the
same regulatory fee, and no longer
supports its earlier proposal.53
17. No parties commented in favor of
the proposal. At this time, we see no
basis to assess different levels of
regulatory fees on different types of
earth station licensees. Accordingly, we
adopt the earth station fee proposed in
the FY 2016 NPRM.
mstockstill on DSK3G9T082PROD with RULES
c. Submarine Cable
18. We did not specifically seek
comment on issues pertaining to the
submarine cable industry. The proposed
rates in the FY 2016 NPRM contained a
fee increase due to the one-time increase
for facilities reduction expenses 54 and a
change in submarine cable units. A
group of submarine cable operators
contends that the proposed rate is too
high and not justified.55 Specifically,
the Submarine Cable Coalition
questions the methodology for the
proposed fees and argues that the
proposed fees are disproportionate to
the benefits received by submarine cable
operators and the minimal regulatory
oversight by the Commission, after the
licensing process.56 Further the
Submarine Cable Coalition states that
the Commission should not overcharge
low-cost regulatees to subsidize for
high-cost regulatees and recommends
that the Commission reduce the
regulatory fees commensurate with the
amount of regulatory activity
undertaken.57 As we have previously
stated, the regulatory fees paid by the
submarine cable operators cover not just
the services provided those entities, but
also the services provided to the
common carriers that use the submarine
cables to provide service.58 The
regulatory fees are also not intended to
recover only the costs of Title II
regulation, but also the costs of our
enforcement, policy and rulemaking,
user information and international
activities that benefit all entities
52 EchoStar Comments at 3 (discussing
elimination of the annual reporting requirement for
blanket FSS earth station licenses in the 20/30 GHz
bands). See also Comprehensive Review of
Licensing and Operation Rules for Satellite
Services, Second Report and Order, 30 FCC Rcd
14713 (2015).
53 EchoStar Comments at 2–3.
54 FY 2016 NPRM, 81 FR 35680, at 35683, note
20.
55 Submarine Cable Coalition Comments at 3–7.
56 Id. at 2–4, 6–7.
57 Id.
58 See FY 2015 Report and Order, 30 FCC Rcd at
10273–74, paragraph 12.
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
involved in international
telecommunications.59 We also note
that since release of the FY 2016 NPRM,
the units used to calculate fees has been
updated with more recent data.
Accordingly, the fees listed in Table 3
are less than the amount proposed in
the FY 2016 NPRM. Nevertheless, we
remind all regulatees, including
submarine cable operators, the FY 2016
regulatory fees include the facilities
reduction costs.
4. FTE Reallocations
19. ITTA has proposed in past
regulatory fee proceedings that wireless
providers should be combined into the
ITSP fee category so that all voice
providers pay regulatory fees on the
same basis.60 ITTA continues to endorse
this approach and contends that the
wireline and wireless voice services are
subject to many of the same regulatory
policies, programs, and obligations and
therefore combining these voice services
into the ITSP category is an appropriate
measure to comply with section 9 of the
Act.61 ITTA explains that due to
changes in the communications
industry and the convergence of
technologies, the Wireline Competition
Bureau FTEs’ work is no longer focused
on ITSPs.62 According to ITTA, the
work performed by Wireline
Competition Bureau FTEs on universal
service issues impacts various types of
communications providers, not just
ITSPs.63
20. Certain commenters agree with
ITTA’s proposals.64 For example, NTCA
contends that updating the ITSP
category to include wireless revenues
would be a ‘‘rational step.’’ 65
CenturyLink explains that this would be
analogous to including VoIP providers
in the ITSP category and DBS in the
cable television/IPTV category.66
Frontier states that the work of various
Wireline Competition Bureau divisions
59 Assessment and Collection of Regulatory Fees
for Fiscal Year 1997, MD Docket No. 96–186, Report
and Order, 12 FCC Rcd at 17188, paragraphs 68–
69 (1997) (FY 1997 Report and Order).
60 See FY 2015 Report and Order, 30 FCC Rcd at
10281–82, paragraphs 31–34; FY 2014 NPRM, 29
FCC Rcd at 6430–31, paragraphs 36–39; FY 2013
NPRM, 28 FCC Rcd at 7796, paragraph 12; FY 2008
FNPRM, 24 FCC Rcd at 6404–05, paragraphs 40–41.
61 ITTA Comments at 6.
62 Id.
63 Id. at 7. ITTA also lists other issues that it
contends are within the Wireline Competition
Bureau but affect entities that are not ITSPs, such
as number portability, 911 emergency access,
special access, rate integration, customer
proprietary network information, pole attachments,
and CALEA. ITTA Comments at 7.
64 See, e.g. , NTCA Comments at 2–4; CenturyLink
Comments at 1–6; Frontier Comments at 1–9; ACA
Comments at 11–14.
65 NTCA Comments at 3.
66 CenturyLink Comments at 4–5.
PO 00000
Frm 00077
Fmt 4700
Sfmt 4700
65929
is ‘‘inseparable from wireless carriers’’
and the divisions work ‘‘for the benefit
of . . . all telecommunications service
providers.’’ 67 These commenters also
support allocating Wireless
Telecommunications Bureau FTEs to
the Wireline Competition Bureau for
regulatory fee purposes.68 In addition,
Frontier supports requiring broadband
Internet service providers to pay ITSP
regulatory fees.69
21. ITTA and CenturyLink argue that
if wireless and wireline voice services
are not combined in the ITSP category
or Wireline Competition Bureau FTEs
are not allocated to the Wireless
Telecommunications Bureau for
regulatory fee purposes, we should
reassign some Wireline Competition
Bureau FTEs as indirect FTEs.70 ITTA
contends that the high-cost and Lifeline
universal service programs benefit
regulatees in addition to ITSPs and that
we should therefore ‘‘adjust its fee
structure to account for this industry
crossover.’’ 71 Commenters contend that
all Wireline Competition Bureau FTEs
that work on ‘‘cross-jurisdictional
issues’’ such as numbering and
universal service should be reassigned
as indirect.72
22. CTIA disagrees with the ITTA
proposal and contends that there is no
basis to reassign Wireline Competition
Bureau FTEs to the Wireless
Telecommunications Bureau because
Wireless Telecommunications Bureau
FTEs already participate in wireline
proceedings to the extent they raise
wireless issues.73 Also, substantial
differences exist between wireless and
wireline services concerning regulatory
oversight which militate against
combining, based on revenues, the
CMRS and ITSP fee categories.74
Wireless providers are not subject to the
regulations and requirements imposed
on ITSPs, and logically combining
CMRS into the ITSP category (based on
67 Frontier
Comments at 6.
Comments at 7–8; NTCA Comments at
3; CenturyLink Comments at 6–8.
69 Frontier Comments at 9.
70 ITTA Comments at 8–9; CenturyLink
Comments at 7–8.
71 ITTA Comments at 7–8.
72 Frontier Comments at 8 & 10; ITTA Comments
at 10; CenturyLink Comments at 7. CenturyLink
also contends that FTEs working on 911 issues
should be indirect. CenturyLink Comments at 7. As
CTIA observes, these FTEs are primarily in the
Public Safety and Homeland Security Bureau and
are indirect. CTIA Reply Comments at 5.
73 CTIA Comments at 2 & Reply Comments at 2.
CTIA also observes that the ITTA proposal would
result in CMRS providers paying regulatory fees
based on Wireless Telecommunications Bureau
FTEs and Wireline Competition Bureau FTEs. CTIA
Reply Comments at 3.
74 CTIA Comments at 2 & Reply Comments at 2–
3.
68 Frontier
E:\FR\FM\26SER1.SGM
26SER1
65930
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
mstockstill on DSK3G9T082PROD with RULES
revenues) merely because both offer
voice services ignores the fundamental
differences in the work done by FTEs in
these two bureaus.75 CTIA further
contends that there is insufficient
information to support a clear case for
the reclassification of FTEs that work on
universal service or numbering issues
from direct to indirect.76
23. CTIA stresses that the number of
FTEs working on any given issue could
change significantly year-to-year
depending on the individual
proceedings the Commission undertakes
in any given year, e.g., there has been
significant work within the past year on
adopting and implementing various
components of the Connect America
Fund (CAF), reforming the Lifeline
Program, and implementing procedures
to allow VoIP providers to obtain
numbers directly from the numbering
administrator.77 CTIA therefore
recommends additional detailed
analysis to demonstrate whether and
how the number of FTEs working on
particular issues may fluctuate and thus
the impact of the potential
reclassification of those FTEs as
indirect.78
24. The Commission has emphasized
that reallocation of some of the
International Bureau’s FTEs as indirect
was a ‘‘singular case’’ because the work
of those International Bureau FTEs
‘‘primarily benefits licensees regulated
by other bureaus.’’ 79 We have further
stated, ‘‘apart from the unique nature of
the International Bureau FTEs, the work
of all the FTEs in a core bureau
contributes to the cost of regulating and
overseeing the licensees of that
bureau.’’ 80 We concluded that ‘‘[g]iven
the significant implications of
reassignment of FTEs in our fee
calculation, we make changes to FTE
classifications only after performing
considerable analysis and finding the
clearest case for reassignment.’’ 81
25. After reviewing the record, we
decline to adopt the ITTA proposal. In
particular, we conclude that ITTA’s
proposal does not address this issue in
a manner that is reasonable and in
compliance with section 9 of the Act.
ITTA does not contend that industries
other than those in the ITSP regulatory
fee category, i.e., CMRS, are subject to
75 CTIA Comments at 2–3 (citing FY 2016 NPRM,
31 FCC Rcd at 5765–66, paragraph 18.).
76 Id. at 3–5.
77 CTIA Comments at 5 & Reply Comments at 3.
78 CTIA Comments at 5 & Reply Comments at 3–
5.
79 FY 2013 Report and Order, 28 FCC Rcd at
12355, paragraph 14.
80 FY 2015 Report and Order, 30 FCC Rcd at
10274, paragraph 15.
81 Id. 30 FCC Rcd at 10274–75, paragraph 15.
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
the oversight and regulation of the
Wireline Competition Bureau or that
CMRS creates significant costs for the
Wireline Competition Bureau due to
such oversight and regulation. We
recognize that the CMRS industry
participates in the universal service
Lifeline program, and that the Wireline
Competition Bureau FTEs are
responsible for the oversight and
regulation of the universal service
mechanisms. We are not convinced at
this time that this relationship is
sufficient to support a reassignment of
the FTEs from the Wireline Competition
Bureau to the Wireless
Telecommunications Bureau,
particularly when the FTEs closely
involved in wireless Lifeline issues are
indirect FTEs, in the Enforcement
Bureau and elsewhere, addressing
compliance with the Commission’s
rules.
26. Further, the number of FTEs
working on any given issue changes
significantly depending on the
individual proceedings the Commission
undertakes in any given year. We now
update FTE allocations on an annual
basis to more accurately reflect the
number of FTEs working on regulation
and oversight of the regulatees in the
various fee categories.82 To attempt to
reallocate Wireline Competition Bureau
FTEs each year based on particular work
assignments is a subjective process that
would likely result in unpredictable
fluctuations in regulatory fees from year
to year. In addition, to the extent
wireline proceedings raise wireless
issues, Wireless Telecommunications
Bureau FTEs already are involved in
work related to the wireless issues in
such proceedings.83
27. ITTA’s proposals also do not take
into account that many indirect FTEs
throughout the Commission outside of
the Wireline Competition Bureau work
on universal service and other wireline
issues. For example, indirect FTEs in
the Enforcement Bureau, Office of
Managing Director, as well as other
bureaus and offices work on various
universal service issues. Therefore, it is
incorrect to contend that primarily FTEs
in the Wireline Competition Bureau are
devoted to all of the universal service
issues. Further, ITTA’s proposal to
reassign some or all of the Wireline
Competition Bureau FTEs working on
universal service as indirect FTEs
ignores licensees not involved in highcost and Lifeline universal service
issues, such as radio and television
broadcasters, that would be responsible
82 See FY 2015 Report and Order, 30 FCC Rcd at
10274, paragraph 15.
83 CTIA Comments at 2.
PO 00000
Frm 00078
Fmt 4700
Sfmt 4700
for contributing to the cost of those
Wireline Competition Bureau FTEs.
Although we recognize Wireline
Competition Bureau proceedings can
affect other industries, such as CMRS,
we are not convinced that this
demonstrates the ‘‘clearest case’’ for
reassignment of FTEs. For these reasons,
we decline to adopt the ITTA proposal
at this time.
5. DBS Rate Issues
28. In 2015, we 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.84 At
that time, we stated that we would
update the rate as necessary to ensure
an appropriate level of regulatory parity
and considering the resources dedicated
to this subcategory.85 Such examination
is 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.’’ 86 When we adopted this
regulatory fee subcategory for DBS, we
observed that numerous regulatory
developments had increased the Media
Bureau FTE activity involving
regulation and oversight of
multichannel video programming
distributors (MVPDs), including DBS
providers.87 For example, DBS
providers (and cable television
operators) are permitted to file program
access complaints 88 and retransmission
consent complaints.89 In addition, DBS
providers are subject to MVPD
requirements such as those pertaining to
program carriage 90 and the requirement
to negotiate retransmission consent in
good faith.91 We also observed that the
Commission had recently adopted
requirements that apply to all MVPDs
and thus equally apply to DBS providers
as part of its implementation of the
Commercial Advertisement Loudness
Mitigation Act (CALM Act),92 the
Twenty-First Century Communications
84 FY 2015 Report and Order and FNPRM, 30 FCC
Rcd at 10276–77, paragraphs 19–20.
85 Id., 30 FCC Rcd at 10277, paragraph 20.
86 GAO ‘‘Federal Communications Commission
Regulatory Fee Process Needs to be Updated,’’
GAO–12–686 (August 2012) at 12, available at
https://www.gao.gov/products/GAO-12-686.
87 See FY 2015 Report and Order, 30 FCC Rcd at
5367–68, paragraph 31.
88 47 U.S.C. 548; 47 CFR 76.1000–1004.
89 47 U.S.C. 325(b)(1), (3)(C)(ii); 47 CFR 76.65(b).
90 47 U.S.C. 536; 47 CFR 76.1300–1302.
91 47 U.S.C. 325(b)(3)(C)(iii); 47 CFR 76.65(a)–(b).
92 See Implementation of the Commercial
Advertisement, Loudness Mitigation (CALM) Act,
Report and Order, 26 FCC Rcd 17222 (2011) (CALM
Act Report and Order).
E:\FR\FM\26SER1.SGM
26SER1
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
mstockstill on DSK3G9T082PROD with RULES
and Video Accessibility Act of 2010
(CVAA),93 as well as the Satellite
Television Extension and Localism Act
(STELA) Reauthorization Act of 2014
(STELAR).94
29. In the FY 2016 NPRM, we
observed that DBS, along with other
MVPDs, continues to receive increased
oversight and regulation as a result of
the work of Media Bureau FTEs. For
example, we recently adopted a Report
and Order requiring cable television
operators, DBS providers, and certain
other licensees to post their public file
documents to the FCC-hosted online
database.95 In addition, we recently
released a Notice of Proposed
Rulemaking pertaining to set-top boxes
of cable television and DBS operators.96
These recent proceedings involving DBS
further demonstrate that DBS providers
impose regulatory costs and receive
benefit from the activities of the Media
Bureau FTEs that affect all MVPDs. In
93 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;
Video Description: Implementation of the TwentyFirst Century Communications and Video
Accessibility Act of 2010, Notice of Proposed
Rulemaking, 31 FCC Rcd 2463 (2016).
94 The STELA Reauthorization Act of 2014
(STELAR), Public Law 113–200, 128 Stat. 2059
(2014). STELAR was enacted on Dec. 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, 30 FCC Rcd 15293
(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).
95 Expansion of Online Public File Obligations to
Cable and Satellite TV Operators and Broadcast
and Satellite Radio Licensees, Report and Order, 31
FCC Rcd 526 (2016).
96 Expanding Consumers’ Video Navigation
Choices, Commercial Availability of Navigation
Devices, Notice of Proposed Rulemaking and
Memorandum Opinion and Order, 31 FCC Rcd 1544
(2016). See also Promoting the Availability of
Diverse and Independent Sources of Video
Programming, Notice of Inquiry, 31 FCC Rcd 1610
(2016).
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
the FY 2016 NPRM, we sought comment
on a higher regulatory fee rate of 27
cents per subscriber per year for FY
2016—a 24 cent per subscriber baseline
with a proportional adjustment of three
cents per subscriber associated with
facilities reduction costs.97 This fee
would be slightly higher than two cents
per month per subscriber and would
remain significantly below the cable
television/IPTV rate of $1.00 per year.98
30. Commenters representing the
cable television industry agree that the
Media Bureau FTEs increasingly devote
time to issues involving the entire
MVPD industry, and that DBS, cable
television, and IPTV all receive
oversight and regulation as a result of
the work of the Media Bureau FTEs on
MVPD issues.99 These commenters
argue that regulatory fee parity for all
MVPDs paying into the cable television/
IPTV fee category is therefore justified
because there is a ‘‘relatively small
difference from a regulatory
perspective’’ between DBS and cable
television/IPTV.100 ACA observes 101
that AT&T, the nation’s largest
MVPD,102 operates its U-verse IPTV
service and its DirecTV DBS service,103
yet will be assessed lower regulatory
fees for its approximately 20 million
DirecTV subscribers than it will pay for
its approximately six million IPTV
subscribers, although these services use
comparable Media Bureau FTE
resources.104
97 For FY 2015, we adopted a rate for DBS of 12
cents per subscriber per year, or one cent per month
per subscriber. By way of comparison, the cable
television and IPTV rate adopted for FY 2015 was
96 cents per subscriber per year.
98 The agency is not required to calculate its costs
with ‘‘scientific precision.’’ Central & Southern
Motor Freight Tariff Ass’n v. United States, 777
F.2d 722, 736 (D.C. Cir. 1985). Reasonable
approximations will suffice. Id.; Mississippi Power
& Light, 601 F.2d at 232; National Cable Television
Ass’n v. FCC, 554 F.2d 1094, 1105 (D.C. Cir. 1976);
36 Comp. Gen. 75 (1956).
99 ACA Comments at 3–11; NCTA Reply
Comments at 3–7.
100 ACA Comments at 3–7; NCTA Reply
Comments at 7.
101 ACA Comments at 9.
102 When the Commission sought comment on
including IPTV into the cable television fee
category, AT&T, an IPTV service provider,
advocated a ‘‘broader MVPD category . . . because
it could encompass both cable service and noncable service video offerings, like IPTV, and allow
for evolution in the MVPD market.’’ AT&T
Comments (MD Docket No. 13–140) at 5.
103 Applications of AT&T Inc. and DirecTV; For
Consent to Assign or Transfer Control of Licenses
and Authorizations, Memorandum Opinion and
Order, 30 FCC Rcd 9131 (2016).
104 See, e.g., Implementation of Section 103 of the
STELA Reauthorization Act of 2014, MB Docket
Nos. 15–216 and 10–71, Ex Parte Letter to Marlene
Dortch, Secretary, FCC, from Sean A. Lev, Counsel
to AT&T Services, Inc. (filed March 16, 2016).
Moreover, recent press reports indicate that AT&T’s
U-verse subscribers are declining, while their
PO 00000
Frm 00079
Fmt 4700
Sfmt 4700
65931
31. ACA agrees that the previously
adopted phase-in period was the correct
approach; however, DBS providers have
already had the benefit of an adequate
phase-in and should now be brought
quickly up to parity with cable
television and IPTV.105 Thus, ACA and
NCTA argue, the Commission should
either assess all payors in the cable
television/IPTV fee category the same
level of fees, or, at a minimum, assess
DBS fee payors a higher fee and commit
to raising that by 2017 to the fees
assessed on cable television operators
and IPTV providers.106
32. The two DBS providers, AT&T
and DISH, however, disagree with our
proposal and argue that there is no
justification for increasing the fee to 27
cents per subscriber per year for FY
2016.107 AT&T contends that we have
failed to demonstrate any specific
reason for this fee increase for DBS
providers.108 DISH argues that the
increase of an additional 15 cents per
subscriber per year will subject DBS
providers to ‘‘rate shock’’ and that we
have abandoned our ‘‘phased
approach.’’ 109 We disagree that this rate
increase, still substantially below the
cable television/IPTV rate, will cause
‘‘rate shock.’’ As NTCA observes, it is
unpersuasive that rate shock will occur
under ‘‘a 27 cents annual fee for services
that cost on average about $100 per
month.’’ 110
33. The proposed fee of 27 cents per
subscriber per year continues to follow
our decision to assess fees for DBS in
the cable television/IPTV category. In
particular, the increase we adopt today
is not based on an incremental increase
in Media Bureau FTEs working on
MVPD issues,111 but is supported by
data and analysis and wholly consistent
DirecTV subscribers are increasing, which will
lower its Media Bureau regulatory fee burden. See
https://variety.com/2016/biz/news/directv-att-tvshrinks-q2-2016-1201819654/; https://
www.hollywoodreporter.com/news/at-t-loses-paytv-913277.
105 ACA Comments at 9–11 & Reply Comments at
15.
106 ACA Comments at 9–11; NCTA Reply
Comments at 9.
107 AT&T Comments at 1–3; DISH Comments at
4–6 & Reply Comments at 2–3.
108 AT&T Comments at 1–3.
109 DISH Comments at 7–8.
110 NTCA Reply Comments at 2–3 (footnote
omitted); ACA Reply Comments at 2 (‘‘claims . . .
that the Commission’s proposed increase will cause
‘rate shock’ . . . should not be given any
credence.’’). The two DBS providers, AT&T and
DISH, are the largest and fourth largest MVPDs in
the nation, and multi-billion dollar corporations. Id.
at 14.
111 This appears to be the DBS position. See
AT&T Comments at 2; DISH Comments at 6 & Reply
Comments at 3.
E:\FR\FM\26SER1.SGM
26SER1
65932
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
with the approach used in FY 2015.112
We reiterate that the DBS and cable
television/IPTV oversight and regulatory
work of Media Bureau FTEs is
similar.113 As such, we remain
committed as a goal to regulatory fee
parity for all MVPDs paying into the
cable television/IPTV fee category.114
We find it appropriate to adopt the rate
proposed in the FY 2016 NPRM.115 For
reasons similar to those discussed in the
FY 2015 NPRM,116 and based on our
analysis of the resources dedicated to
this subcategory, including the
resources dedicated to the pending
portfolio of MVPD proceedings, we
revise the DBS fee rate. Specifically, in
this FY 2016 regulatory fee proceeding,
we adopt a DBS fee rate of 27 cents per
subscriber per year for FY 2016, as set
forth in the fee schedule. This fee
includes a 24 cent per subscriber
baseline with a proportional adjustment
of three cents per subscriber associated
with facilities reduction costs.
6. Broadcasters’ Fees
a. AM and FM Broadcasters Serving the
Smallest Two Market Levels (<=25,000
and 25,001–75,000)
34. In the FY 2016 NPRM, we
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.117 Similarly, we proposed to
standardize the incremental increase in
fees as the population served
increases,118 and to more consistently
assess fees based on the type and class
of service.119 We also proposed to adjust
the television broadcasters table so that
Top 10 market stations should pay
about twice what stations in markets
26–50 pay.120
35. Several commenters contend that
our proposal is too burdensome for
small independent radio and television
stations.121 One commenter contends
that the addition of ‘‘greater than 6
million’’ is a welcome step for radio
broadcasters, but that it does not go far
enough because AM stations bill far less
advertising revenue than FM stations.122
Another commenter, representing a
group of recording artists, observes that
‘‘the [radio] stations that support us the
most are the smaller independents not
affiliated with the major networks.
These smaller stations struggle on a dayto-day basis.’’ 123 Several commenters
suggest that we use a combination of
revenue and a set fee instead of a
market-based fee, to assess regulatory
fees for radio and television
broadcasters.124
36. We do not require broadcasters to
report their revenues. Thus, the
revenue-based proposal is not
practicable at this time. We agree,
however, that the proposed rates should
be revised downward for the smaller
AM and FM radio broadcast stations.
Extending some relief to these small
radio broadcasters may facilitate their
continued ability to stay in business and
serve their small and rural communities.
Therefore, after reviewing the record,
including the comments filed by the
industry describing the economic
hardship faced by many small rural
independent radio stations, we are
adopting a revised version of the
proposed table in the FY 2016 NPRM
and reducing the regulatory fees in the
two lowest population tiers for AM and
FM broadcasters from the amounts
proposed.125
TABLE 1—FY 2016 AM AND FM RADIO STATION REGULATORY FEES
Population served
AM Class A
mstockstill on DSK3G9T082PROD with RULES
<=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 .................................
$990
1,475
2,200
3,300
5,500
8,250
11,000
112 See FY 2015 Report and Order, 30 FCC Rcd
at 10277, paragraph 20 (finding that the initial rate
of 12 cents per subscriber per year is a ‘‘sensible
fee supported by data and analysis.’’)
113 FY 2016 NPRM, 81 FRt 35680, at 35683,
paragraphs 13–14.; FY 2015 NPRM, 30 FCC Rcd at
5369, paragraph 33.
114 See FY 2015 Report and Order, 30 FCC Rcd
at 10277, paragraph 20 (‘‘In the FY 2016 regulatory
fee proceeding, we will update this rate for future
years, based on relevant information, as necessary
for ensuring an appropriate level of regulatory
parity and considering the resources dedicated to
this new regulatory fee subcategory.’’).
115 FY 2016 NPRM, 81 FR 35680, at 35683 at
paragraph 14.
116 FY 2015 NPRM, 30 FCC Rcd at 5367–5373,
paragraphs 31–41.
117 FY 2016 NPRM, 81 FR 35680, at 35684,
paragraph 17. We also sought comment on this
issue in the Further Notice of Proposed Rulemaking
attached to the FY 2015 Report and Order. See FY
2015 Report and Order, 30 FCC Rcd at 10280,
paragraph 28.
118 Id. Specifically, we sought comment on
standardizing the incremental increase in fees as
radio broadcasters increase the population they
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
AM Class B
AM Class C
$715
1,075
1,600
2,375
3,975
5,950
7,950
$620
925
1,375
2,075
3,450
5,175
6,900
serve, such as by requiring that fee adjustments
between tiers monotonically increase as the
population served increases. Id.
119 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.
120 FY 2016 NPRM, 81 FR 35680, at 35685,
paragraph 19. We also sought comment on this
issue in the Further Notice of Proposed Rulemaking
attached to the FY 2015 Report and Order. See FY
2015 Report and Order, 30 FCC Rcd at 10280–81,
paragraph 29.
121 Marquee Broadcasting Comments at 1 (‘‘[The
proposal] places a disproportional burden on small,
independent broadcast [television] stations, the
very group the FCC should hope to encourage in an
industry of giants.’’); Koor Communications Reply
Comments at 1 (‘‘The present system of calculating
regulatory fees is very lopsided and unfair
especially to small market AM Broadcasters.’’); P &
M Radio Reply Comments at 1 (‘‘I, along with many
PO 00000
Frm 00080
Fmt 4700
Sfmt 4700
AM Class D
$685
1,025
1,525
2,275
3,800
5,700
7,600
FM Classes
A, B1 & C3
$1,075
1,625
2,400
3,600
6,000
9,000
12,000
FM Classes
B, C, C0, C1
& C2
$1,250
1,850
2,750
4,125
6,875
10,300
13,750
owner-operators of independent AM stations, have
been struggling in the past decade just to stay on
the air.’’); Blackbelt Broadcasting Comments at 1
(‘‘the proposed fee increase (and structure) [should
be] revaluated [to] consider the burden this will put
on many small rural [FM] broadcasters.’’);
Fitzgerald Comments at 2 (‘‘Stations with
populations under 25,000 served are for the most
part, very small ‘Mom and Pop’ style stations. These
[proposed] massive increases will greatly harm
these . . . [radio] stations which generate very
small amounts of revenue.’’); Faxon Reply
Comments at 1 (‘‘The proposed regulatory fees for
2016 do not make sense and place an extreme
burden on small market radio stations.’’).
122 Bittner Comments at 1.
123 Brigham Reply Comments at 1.
124 Bittner Broadcasting Comments at 1–3;
Marquee Broadcasting Comments at 1; Brigham
Reply Comments at 1; Koor Communications Reply
Comments at 1; P & M Radio Reply Comments at
1; Faxon Reply Comments at 1.
125 PMCM TV suggests that we assess a lower fee
for VHF TV stations than UHF stations. PMCM TV
Comments at 3–4. We decline to adopt this proposal
here, but intend to seek comment on it in the FY
2017 Notice of Proposed Rulemaking.
E:\FR\FM\26SER1.SGM
26SER1
65933
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
TABLE 1—FY 2016 AM AND FM RADIO STATION REGULATORY FEES—Continued
Population served
AM Class A
>6,000,000 ...............................................
13,750
b. Puerto Rico Broadcasters Association
Proposal
37. The PRBA and Arso comment on
the issues set forth in the PRBA
December 10, 2014 letter (PRBA
Letter),126 seeking regulatory fee relief
for the radio broadcasters in the
Commonwealth of Puerto Rico due to
economic hardship, unique geography,
and declining population.127 In the
PRBA Letter, PRBA requested that the
Commission use more recent figures to
determine the radio station population
count for radio stations in Puerto
Rico.128 PRBA stated that due to the
economic hardship in the territory, the
population has decreased in the past
nine years by almost six percent because
of migration to the mainland United
States and a declining birthrate.129
Finally, PRBA contended that the radio
listening market is limited because it is
restricted to listeners within the
boundaries of the island.130
38. PRBA and Arso contend that the
economic situation has worsened since
the PRBA Letter was filed, and that it is
crucial that the Commission provide
relief from regulatory fee obligations for
126 PRBA
Comments at 1–5; Arso Comments at 1–
mstockstill on DSK3G9T082PROD with RULES
7.
127 We previously sought comment on: (i) Moving
the Puerto Rico market stations to a different rate
(or a lower population stratum) because of the
downward trend in the population and other
factors; (ii) creating a separate fee category for the
Puerto Rico market at a lower rate; or (iii) adopting
a special provision in our rules for economically
depressed geographic areas to seek a ‘‘fast track’’
waiver of regulatory fees. See FY 2015 NPRM, 30
FCC Rcd at 5360–61, paragraphs 15–18. Arso
observes that the ‘‘fast track’’ proposal would
require a rulemaking procedure, which would be
time-consuming, and the Puerto Rican stations need
immediate relief. Arso Comments at 4.
128 PRBA Letter at 2–4. PRBA asked the
Commission to examine population data every five
years instead of every 10 years to increase the
accuracy of the population counts in Puerto Rico.
The Commission explained that radio station
population counts are updated every ten years to
reflect nationwide changes in the population using
the ‘‘block level census data’’ from the U.S. Census,
therefore we could not adopt PRBA’s suggestion
because the ‘‘block level census data’’ is only
available from the U.S. Census Bureau every 10
years. Further, even if such figures were available
every five years, they would be unlikely to provide
a basis for fee relief for radio stations in Puerto Rico
because fees on AM and FM radio stations are not
assessed at granular levels. See FY 2015 NPRM, 30
FCC Rcd at 5360–61, paragraphs 15–18.
129 PRBA Letter at 3.
130 Id. at 5.
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
AM Class B
AM Class C
9,950
8,625
Puerto Rican broadcasters.131 PRBA
contends that requiring each radio and
television station to submit a waiver
request would negate any benefit of the
Commission’s efforts.132 Arso observes
that it would be burdensome for
companies to pay the regulatory fee
when requesting a fee reduction.133
Instead, PRBA contends, the
Commission should either move the
Puerto Rican stations to a lower
population stratum 134 or create a
separate fee category for the Puerto
Rican market.135 PRBA urges the
Commission to adopt the second
proposal—a separate fee category for the
entire Puerto Rican market—at a rate 30
percent lower than the normal rate for
each station.136
39. We decline to adopt the PRBA
proposal at this time. Fee relief is
ordinarily processed through a waiver
request or payment deferral.137 While
we recognize that the economic
situation in Puerto Rico is difficult in
general, without the specific
information needed to justify a waiver
request or payment deferral we would
not know the particular circumstances
of the regulatee or licensee to support a
request for relief. Information
concerning how to request fee relief can
be found on our Web site, e.g., https://
www.fcc.gov/document/fy-2015-waiverregulatory-fees-fact-sheet. As discussed
above, we are adopting a revised version
of the proposed table and thus reducing
the regulatory fees in the two lowest
131 PRBA
Comments at 2; Arso Comments at 3.
Comments at 3. Arso Comments at
133 Arso Comments at 3–4.
134 PRBA suggests moving two levels down to
account for population loss and economic
difficulties. PRBA Comments at 4.
135 PRBA Comments at 3–4. Arso Comments at
136 PRBA Comments at 4. Arso Comments at
137 Fees may be waived, reduced or deferred in
specific instances, on a case-by-case basis, where
good cause is shown and where waiver, reduction,
or deferral of the fee would promote the public
interest. 47 U.S.C. 159(d); 47 CFR 1.1166. Fee relief
may be granted based on a ‘‘sufficient showing of
financial hardship.’’ See Implementation of Section
9 of the Communications Act, Assessment and
Collection of Regulatory Fees for the 1994 Fiscal
Year, Memorandum Opinion and Order, 10 FCC
Rcd 12759, 12761–62, paragraph 13 (1995). In such
matters, however, ‘‘[m]ere allegations or
documentation of financial loss, standing alone,’’
do not suffice and ‘‘it [is] incumbent upon each
regulatee to fully document its financial position
and show that it lacks sufficient funds to pay the
regulatory fee and to maintain its service to the
public.’’ Id.
132 PRBA
PO 00000
Frm 00081
Fmt 4700
Sfmt 4700
AM Class D
9,500
FM Classes
A, B1 & C3
FM Classes
B, C, C0, C1
& C2
15,000
17,175
population tiers from the amount
proposed for radio broadcasters, which
should provide some amount of fee
relief to eleven of the PRBA stations.138
c. Broadcast Television Incentive
Auction—Reminder To Pay FY 2016
and FY 2017 Regulatory Fees
40. The Commission’s Broadcast
Television Incentive Auction (Incentive
Auction) is underway, and all broadcast
television licensees are reminded that
they continue to be responsible for
payment of FY 2016 regulatory fees if
they held a license or construction
permit as of October 1, 2015, as well as
for payment of FY 2017 regulatory fees
if they continue to hold their license or
construction permit as of October 1,
2016. Licensees must pay the required
regulatory fees to avoid any delay of
payments resulting from the Incentive
Auction.139 Finally, regulatees are
reminded that non-payment of
regulatory fees, if required, will place
them in red light status and prevent
them from conducting business with the
Commission.
V. Procedural Matters
A. Payment of Regulatory Fees
1. Payments by Check Will Not Be
Accepted for Payment of Annual
Regulatory Fees
41. Pursuant to an Office of
Management and Budget (OMB)
directive,140 the Commission is moving
towards a paperless environment,
extending to disbursement and
collection of select federal government
138 The remaining radio stations in Puerto Rico
are situated in the top three fee category tiers. In
addition to providing relief to eleven Puerto Rican
radio stations, a reduction in the fees of the two
lowest fee categories also provides relief to many
small non-Puerto Rican stations, including several
dozen radio stations in the U.S. territories in the
Pacific and in the Caribbean (e.g., Guam, American
Samoa, Saipan, and U.S. Virgin Islands).
139 Application Procedures for Broadcast
Incentive Auction Scheduled to Begin on March 29,
2016; Technical Formulas for Competitive Bidding,
Public Notice, 30 FCC Rcd 11034, 11041–42,
paragraphs 12–14 (WTB 2015); see also Expanding
the Economic and Innovation Opportunities of
Spectrum Though Incentive Auctions, Report and
Order, 29 FCC Rcd at 6567, 6785, n.1512 (2014).
140 Office of Management and Budget (OMB)
Memorandum M–10–06, Open Government
Directive, Dec. 8, 2009; see also https://
www.whitehouse.gov/the-press-office/2011/06/13/
executive-order-13576-delivering-efficient-effectiveand-accountable-gov.
E:\FR\FM\26SER1.SGM
26SER1
65934
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
payments and receipts.141 The initiative
to reduce paper and curtail check
payments for regulatory fees is expected
to produce cost savings, reduce errors,
and improve efficiencies across
government. In FY 2015, we 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.142 The
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
in order to associate the wire payment
with the correct regulatory fee
information.143
mstockstill on DSK3G9T082PROD with RULES
2. Revised Credit Card Transaction
Levels
42. 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 limited to $24,999.99.144
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
141 See U.S. Department of the Treasury, Open
Government Plan 2.1, Sept. 2012.
142 FY 2015 Report and Order, 30 FCC Rcd at
10282–83, paragraph 35.
143 As we explained in 2015, payors should note
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.
144 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.
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
methods and procedures at the time of
FY 2016 regulatory fee collection in Fact
Sheets, available at https://www.fcc.gov/
regfees.
3. Payment Methods
43. During the fee season for
collecting FY 2016 regulatory fees,
regulatees can pay their fees by credit
card through Pay.gov,145 ACH, debit
card,146 or by wire transfer. Additional
payment instructions are posted at
https://transition.fcc.gov/fees/
regfees.html. The receiving bank for all
wire payments is the U.S. Treasury,
New York, New York. When making a
wire transfer, regulatees must fax a copy
of their Fee Filer generated Form 159–
E to the Federal Communications
Commission at (202) 418–2843 at least
one hour before initiating the wire
transfer (but on the same business day)
so as not to delay crediting their
account. Regulatees should discuss
arrangements (including bank closing
schedules) with their bankers several
days before they plan to make the wire
transfer to allow sufficient time for the
transfer to be initiated and completed
before the deadline. Complete
instructions for making wire payments
are posted at https://ransition.fcc.gov/
fees/wiretran.html.
4. De Minimis Regulatory Fees
44. 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 2015 regulatory fees. The
de minimis threshold applies only to
filers of annual regulatory fees (not
regulatory fees paid through multi-year
filings), and is not a permanent
exemption. Regulatees will need to
reevaluate their total fee liability each
fiscal year to determine whether they
meet the de minimis exemption.
5. Standard Fee Calculations and
Payment Dates
45. 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
145 In accordance with U.S. Treasury Financial
Manual Announcement No. A–2014–04 (July 2014),
the amount that may be charged on a credit card
for transactions with federal agencies has been
reduced to $24,999.99.
146 In accordance with U.S. Treasury Financial
Manual Announcement No. A–2012–02, the
maximum dollar-value limit for debit card
transactions is eliminated. Only Visa and
MasterCard branded debit cards are accepted by
Pay.gov.
PO 00000
Frm 00082
Fmt 4700
Sfmt 4700
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 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.147 For RespOrgs that manage
Toll Free Numbers (TFN), regulatory
fees should be paid on all working,
assigned, and reserved toll free
numbers, including those toll free
numbers that are in transit status, or any
other status as defined in section 52.103
of the Commission’s rules. The unit
count should be based on toll free
numbers managed by RespOrgs on or
about December 31, 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.
147 Audio bridging services are toll
teleconferencing services.
E:\FR\FM\26SER1.SGM
26SER1
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
mstockstill on DSK3G9T082PROD with RULES
• 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, 2015.148
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 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, noncommon carrier satellite operators must
pay a fee for each circuit they and their
affiliates hold and each circuit sold or
148 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.
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
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.149 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.150
B. Commercial Mobile Radio Service
(CMRS) Cellular and Mobile Services
Assessments
46. 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’’).151 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).
47. 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.152 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
149 We encourage terrestrial and satellite service
providers to seek guidance from the International
Bureau’s Policy Division to verify their IBC
reporting processes to ensure that their calculation
methods comply with our rules.
150 We remind facilities-based common carriers to
review their reporting processes to ensure that they
accurately calculate and report IBCs.
151 See FY 2005 Report and Order, 20 FCC Rcd
at 12264, paragraphs 38–44.
152 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.
PO 00000
Frm 00083
Fmt 4700
Sfmt 4700
65935
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.
48. 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.
C. Enforcement
49. To be considered timely,
regulatory fee payments must be made
electronically by the payment due date
for regulatory fees. Section 9(c) of the
Act requires us to impose a late
payment penalty of 25 percent of the
unpaid amount to be assessed on the
first day following the deadline for
filing these fees.153 Failure to pay
regulatory fees and/or any late penalty
will subject regulatees to sanctions,
including those set forth in section
1.1910 of the Commission’s rules,154
which generally requires the
Commission to withhold action on
‘‘applications, including on a petition
for reconsideration or any application
for review of a fee determination, or
requests for authorization by any entity
found to be delinquent in its debt to the
Commission’’ and in the DCIA.155 We
153 47
U.S.C. 159(c).
47 CFR 1.1910.
155 Delinquent debt owed to the Commission
triggers the ‘‘red light rule,’’ which places a hold on
the processing of pending applications, fee offsets,
and pending disbursement payments. 47 CFR
1.1910, 1.1911, 1.1912. In 2004, the Commission
adopted rules implementing the requirements of the
DCIA. See Amendment of Parts 0 and 1 of the
Commission’s Rules, MD Docket No. 02–339, Report
and Order, 19 FCC Rcd 6540 (2004); 47 CFR part
154 See
E:\FR\FM\26SER1.SGM
Continued
26SER1
65936
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
also assess administrative processing
charges on delinquent debts to recover
additional costs incurred in processing
and handling the debt pursuant to the
DCIA and section 1.1940(d) of the
Commission’s rules.156 These
administrative processing charges will
be assessed on any delinquent
regulatory fee, in addition to the 25
percent late charge penalty. In the case
of partial payments (underpayments) of
regulatory fees, the payor will be given
credit for the amount paid, but if it is
later determined that the fee paid is
incorrect or not timely paid, then the 25
percent late charge penalty (and other
charges and/or sanctions, as
appropriate) will be assessed on the
portion that is not paid in a timely
manner.
50. Pursuant to the ‘‘red light rule,’’
we will withhold action on any
applications or other requests for
benefits filed by anyone who is
delinquent in any non-tax debts owed to
the Commission (including regulatory
fees) and will ultimately dismiss those
applications or other requests if
payment of the delinquent debt or other
satisfactory arrangement for payment is
not made.157 Failure to pay regulatory
fees can also result in the initiation of
a proceeding to revoke any and all
authorizations held by the entity
responsible for paying the delinquent
fee(s).158 Pursuant to a pilot program,
we have initiated procedures to transfer
debt to the Centralized Receivables
Service at the U.S. Treasury, as
described below.
D. Transfers of Unpaid Debt to
Centralized Receivables Service (CRS),
U.S. Treasury
51. Under section 9 of the Act,
Commission rules, and federal debt
collection laws, a licensee’s regulatory
fee is due on the first day of the fiscal
year and payable at a date established in
the Commission’s annual regulatory fee
Report and Order. In October 2015, the
Commission, under revised procedures,
began transferring unpaid regulatory fee
receivables directly to the CRS at the
U.S. Treasury rather than trying to
collect the debt itself and then
transferring the remaining unpaid debts
to Treasury. Under revised procedures,
the Commission can transfer delinquent
debt to Treasury for further collection
action within 120 days after the date of
delinquency.159 However, regulatees
will not likely see any substantial
change in the current procedures of how
past due debts are to be paid, except
that the debts will be handled by CRS
(U.S. Treasury) rather than by the
Commission.
E. Effective Date
52. Providing a 30 day period after
Federal Register publication before this
Report and Order becomes effective as
required by 5 U.S.C. 553(d) will not
allow sufficient time to collect the FY
2016 fees before FY 2016 ends on
September 30, 2016. For this reason,
pursuant to 5 U.S.C. 553(d)(3), we find
there is good cause to waive the
requirements of section 553(d), and this
Report and Order will become effective
upon publication in the Federal
Register. Because payments of the
regulatory fees will not actually be due
until late September, persons affected
by this Report and Order will still have
a reasonable period in which to make
their payments and thereby comply
with the rules established herein.
VI. Additional Tables
TABLE 2—LIST OF COMMENTERS—INITIAL COMMENTS
Commenter
Abbreviation
American Cable Association ...........................................................................................................................................
Arso Radio Corporation ..................................................................................................................................................
AT&T Services, Inc. ........................................................................................................................................................
Robert Bittner, Bob Bittner Broadcasting Co. ................................................................................................................
CTIA ................................................................................................................................................................................
CenturyLink, Inc. .............................................................................................................................................................
Damon Collins, Blackbelt Broadcasting, Inc. .................................................................................................................
DISH Network, L.L.C. .....................................................................................................................................................
EchoStar Satellite Operating Corporation and Hughes Network Systems, LLC ...........................................................
Kevin M. Fitzgerald .........................................................................................................................................................
Frontier Communications Corporation ............................................................................................................................
Patricia Lane, Marquee Broadcasting ............................................................................................................................
Level 3 Communications, LLC .......................................................................................................................................
NTCA—The Rural Broadband Association ....................................................................................................................
Puerto Rico Broadcasters Association ...........................................................................................................................
Somos, Inc. .....................................................................................................................................................................
Submarine Cable Coalition .............................................................................................................................................
ACA.
Arso.
AT&T.
Bittner Broadcasting.
CTIA.
CenturyLink.
Blackbelt Broadcasting.
DISH.
EchoStar.
Fitzgerald.
Frontier.
Marquee Broadcasting.
Level 3.
NTCA.
PRBA.
Somos.
Submarine Cable Coalition.
mstockstill on DSK3G9T082PROD with RULES
List of Commenters—Reply Comments
American Cable Association ...........................................................................................................................................
Adrian Brigham ...............................................................................................................................................................
CTIA ................................................................................................................................................................................
DISH Network, L.L.C. .....................................................................................................................................................
Shawn Faxon ..................................................................................................................................................................
Robert L. Vinikoor, Koor Communications, Inc. .............................................................................................................
National Cable & Telecommunications Association .......................................................................................................
NTCA—The Rural Broadband Association ....................................................................................................................
Phillip G. Drumheller, President, P & M Radio, LLC. ....................................................................................................
PMCM TV, LLC ..............................................................................................................................................................
1, subpart O, Collection of Claims Owed the United
States.
156 47 CFR 1.1940(d).
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
157 See
158 47
PO 00000
47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
U.S.C. 159.
Frm 00084
Fmt 4700
Sfmt 4700
ACA.
Brigham.
CTIA.
DISH.
Faxon.
Koor Communications.
NCTA.
NTCA.
P & M Radio.
PMCM TV.
159 See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR
1.1917.
E:\FR\FM\26SER1.SGM
26SER1
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
65937
TABLE 3—CALCULATION OF FY 2016 REVENUE REQUIREMENTS AND PRO-RATA FEES
[Regulatory fees for the first seven fee 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 2016
payment units
Fee Category
mstockstill on DSK3G9T082PROD with RULES
PLMRS (Exclusive Use) ..................
PLMRS (Shared use) (includes
Rural Radio Service (47 CFR part
22) ................................................
Microwave ........................................
Marine (Ship) ...................................
Aviation (Aircraft) .............................
Marine (Coast) .................................
Aviation (Ground) .............................
AM Class A 4 ....................................
AM Class B 4 ....................................
AM Class C 4 ....................................
AM Class D 4 ....................................
FM Classes A, B1 & C3 4 ................
FM Classes B, C, C0, C1 & C2 4 ....
AM Construction Permits 1 ..............
FM Construction Permits 1 ...............
Satellite TV .......................................
Digital TV Markets 1–10 ..................
Digital TV Markets 11–25 ................
Digital TV Markets 26–50 ................
Digital TV Markets 51–100 ..............
Digital TV Remaining Markets .........
Digital TV Construction Permits 1 ....
LPTV/Translators/Boosters/Class A
TV .................................................
CARS Stations .................................
Cable TV Systems, including IPTV
Direct Broadcast Satellite (DBS) .....
Interstate Telecommunication Service Providers .................................
Toll Free Numbers ...........................
CMRS Mobile Services (Cellular/
Public Mobile) ...............................
CMRS Messag. Services .................
BRS 2 ................................................
LMDS ...............................................
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 ......................
****** Total Revenue Requirement ......................................
Difference ..........................
FY 2015
revenue
estimate
Years
Pro-rated FY
2016 revenue
requirement
Computed FY
2016 reg. fee
Rounded
FY 2016
reg. fee
Expected
FY 2016
revenue
2,500
10
546,000
625,000
25
25
625,000
31,100
12,500
6,900
4,700
480
1,100
66
1,535
889
1,492
3,122
3,139
15
179
128
139
139
181
283
365
3
10
10
10
10
10
10
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
3,100,000
2,520,000
945,000
420,000
171,500
180,000
281,125
3,499,125
1,244,600
4,103,000
8,613,000
10,607,625
17,110
136,500
200,025
6,274,550
5,918,400
5,000,125
4,605,825
1,838,150
9,700
3,110,000
3,125,000
1,035,000
470,000
192,000
220,000
313,996
3,888,014
1,407,418
4,601,097
9,649,637
11,820,313
9,300
192,425
224,000
8,433,889
6,348,889
5,523,889
4,304,746
1,825,000
15,000
10
25
15
10
40
20
4,758
2,533
1,583
3,084
3,091
3,766
620
1,075
1,750
60,675
45,675
30,519
15,211
5,000
5,000
10
25
15
10
40
20
4,750
2,525
1,575
3,075
3,100
3,775
620
1,075
1,750
60,675
45,675
30,525
15,200
5,000
5,000
3,110,000
3,125,000
1,035,000
470,000
192,000
220,000
313,500
3,875,875
1,400,175
4,587,900
9,678,200
11,849,725
9,300
192,425
224,000
8,433,825
6,348,825
5,525,025
4,301,600
1,825,000
15,000
3,924
285
64,200,000
34,000,000
1
1
1
1
1,601,600
198,000
61,920,000
4,080,000
1,785,420
220,875
64,200,000
9,180,000
455
775
1.000
.2700
455
775
1.00
.27
1,785,420
220,875
64,200,000
9,180,000
38,200,000,000
36,500,000
1
1
128,428,000
4,380,000
141,722,000
4,745,000
0.003710
0.1300
0.00371
0.13
142,722,000
4,745,000
366,000,000
2,300,000
890
395
1
1
1
1
60,180,000
208,000
565,150
238,125
73,200,000
184,000
645,250
286,375
0.1954
0.0800
725
725
0.20
0.080
725
725
73,200,000
184,000
645,250
286,375
31,900,000
1
657,000
776,617
.0243
.02
638,000
41.19
3,400
95
6
1
1
1
1
4,652,576
1,023,000
11,438,400
792,750
5,486,427
1,173,000
13,155,125
911,700
133,205
345
138,475
151,950
133,200
345
138,475
151,950
5,486,242
1,173,000
13,155,125
911,700
..........................
..............
340,593,961
385,006,402
........................
....................
384,890,362
..........................
..........................
..............
..............
339,844,000
749,961
384,012,497
993,905
........................
........................
....................
....................
384,012,497
877,865
Notes on Table 3
1 The AM and FM 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.
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, paragraph 6 (2004).
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 stations are listed on a grid located at the end of Table 4.
VerDate Sep<11>2014
20:56 Sep 23, 2016
Jkt 238001
PO 00000
Frm 00085
Fmt 4700
Sfmt 4700
E:\FR\FM\26SER1.SGM
26SER1
65938
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
TABLE 4—FY 2016 SCHEDULE OF REGULATORY FEES
[Regulatory fees for the first eight fee 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
620
1,075
..............................
60,675
45,675
30,525
15,200
5,000
5,000
1,750
455
775
1.00
.27
.00371
.13
345
138,475
151,950
.02
See Table Below
FY 2016 SCHEDULE OF REGULATORY FEES:
[Table 4 continued]
FY 2016 RADIO STATION REGULATORY FEES
Population Served
AM Class A
<=25,000 ..................................................
25,001–75,000 .........................................
75,001–150,000 .......................................
150,001–500,000 .....................................
500,001–1,200,000 ..................................
1,200,001–3,000,00 .................................
3,000,001–6,000,00 .................................
>6,000,000 ...............................................
AM Class B
$990
1,475
2,200
3,300
5,500
8,250
11,000
13,750
AM Class C
$715
1,075
1,600
2,375
3,975
5,950
7,950
9,950
AM Class D
$620
925
1,375
2,075
3,450
5,175
6,900
8,625
$685
1,025
1,525
2,275
3,800
5,700
7,600
9,500
FM Classes A,
B1 & C3
FM Classes B,
C, C0, C1 &
C2
$1,075
1,625
2,400
3,600
6,000
9,000
12,000
15,000
$1,250
1,850
2,750
4,125
6,875
10,300
13,750
17,175
FY 2016 SCHEDULE OF REGULATORY
FEES—Continued
FY 2016 SCHEDULE OF REGULATORY
FEES—Continued
[International Bearer Circuits—Submarine
Cable (Table 4 continued)]
mstockstill on DSK3G9T082PROD with RULES
FY 2016 SCHEDULE OF REGULATORY
FEES
[International Bearer Circuits—Submarine
Cable (Table 4 continued)]
[International Bearer Circuits—Submarine
Cable (Table 4 continued)]
Submarine cable systems
(capacity as of December 31,
2015)
< 2.5 Gbps ............................
2.5 Gbps or greater, but less
than 5 Gbps ......................
VerDate Sep<11>2014
20:07 Sep 23, 2016
Fee amount
$8,325
Submarine cable systems
(capacity as of December 31,
2015)
Fee amount
5 Gbps or greater, but less
than 10 Gbps ....................
16,650
Jkt 238001
PO 00000
Frm 00086
Fmt 4700
Sfmt 4700
33,300
Submarine cable systems
(capacity as of December 31,
2015)
10 Gbps or greater, but less
than 20 Gbps ....................
20 Gbps or greater ...............
E:\FR\FM\26SER1.SGM
26SER1
Fee amount
66,600
133,200
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
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
65939
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.
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.
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.
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
Earth Stations .....................................................
Space Stations (GSOs & NGSOs) .....................
International Bearer Circuits ...............................
Submarine Cable Licenses .................................
Table 6—Factors, Measurements, and
Calculations That Determines Station
Signal Contours and Associated
Population Coverages
mstockstill on DSK3G9T082PROD with RULES
AM Stations
For stations with nondirectional
daytime antennas, the theoretical
radiation was used at all azimuths. For
stations with directional daytime
antennas, specific information on each
day tower, including field ratio, phase,
spacing, and orientation was retrieved,
as well as the theoretical pattern rootmean-square of the radiation in all
directions in the horizontal plane (RMS)
figure (milliVolt per meter (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
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
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.
for each of 360 radials around the
transmitter site. Next, estimated soil
conductivity data was retrieved from a
database representing the information in
FCC Figure R3. Using the calculated
horizontal radiation values, and the
retrieved soil conductivity data, the
distance to the principal community (5
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.
PO 00000
Frm 00087
Fmt 4700
Sfmt 4700
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
E:\FR\FM\26SER1.SGM
26SER1
65940
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
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 fee 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
FY 2015 SCHEDULE OF REGULATORY FEES
[Table 7 continued]
FY 2015 Radio Station Regulatory Fees
Population served
AM Class A
mstockstill on DSK3G9T082PROD with RULES
<=25,000 ..................................................
25,001–75,000 .........................................
75,001–150,000 .......................................
150,001–500,000 .....................................
500,001–1,200,000 ..................................
1,200,001–3,000,00 .................................
>3,000,000 ...............................................
AM Class B
$775
1,550
2,325
3,475
5,025
7,750
9,300
AM Class C
$645
1,300
1,625
2,750
4,225
6,500
7,800
AM Class D
$590
900
1,200
1,800
3,000
4,500
5,700
$670
1,000
1,675
2,025
3,375
5,400
6,750
FM Classes
A, B1 & C3
$750
1,500
2,050
3,175
5,050
8,250
10,500
FM Classes
B, C, C0, C1
& C2
$925
1,625
3,000
3,925
5,775
9,250
12,025
FY 2015 SCHEDULE OF REGULATORY FEES
[International bearer circuits—submarine cable (Table 7 continued)]
Submarine cable systems
(capacity as of December 31, 2014)
Fee amount
< 2.5 Gbps ...........................................................................................................................................................................................
2.5 Gbps or greater, but less than 5 Gbps .........................................................................................................................................
5 Gbps or greater, but less than 10 Gbps ..........................................................................................................................................
10 Gbps or greater, but less than 20 Gbps ........................................................................................................................................
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
PO 00000
Frm 00088
Fmt 4700
Sfmt 4700
E:\FR\FM\26SER1.SGM
26SER1
$7,175
14,350
28,675
57,350
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
65941
FY 2015 SCHEDULE OF REGULATORY FEES—Continued
[International bearer circuits—submarine cable (Table 7 continued)]
Submarine cable systems
(capacity as of December 31, 2014)
Fee amount
20 Gbps or greater ..............................................................................................................................................................................
VII. Final Regulatory Flexibility
Analysis
on type and class of service and on the
population served.
1. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA),1 an Initial Regulatory Flexibility
Analysis (IRFA) was included in the
Notice of Proposed Rulemaking.2 The
Commission sought written public
comment on these proposals including
comment on the IRFA. This Final
Regulatory Flexibility Analysis (FRFA)
conforms to the IRFA.3
B. Summary of the Significant Issues
Raised by the Public Comments in
Response to the IRFA
4. None.
A. Need for, and Objectives of, the
Report and Order
mstockstill on DSK3G9T082PROD with RULES
2. In this Report and Order, we
conclude the Assessment and Collection
of Regulatory Fees for Fiscal Year (FY)
2016 proceeding to collect
$384,012,497.00 in regulatory fees for
FY 2016, pursuant to section 9 of the
Communications Act of 1934, as
amended (Communications Act or
Act).4 These regulatory fees will be due
on September 27, 2016. Under section 9
of the Communications Act, regulatory
fees are mandated by Congress and
collected to recover the regulatory costs
associated with the Commission’s
enforcement, policy and rulemaking,
user information, and international
activities in an amount that can be
reasonably expected to equal the
amount of the Commission’s annual
appropriation.5
3. This FY 2016 Report and Order
adopts a regulatory fee schedule that
includes the following noteworthy
changes from prior years: (1) An
increase in regulatory fees across all fee
categories to offset the Commission’s
facilities reduction costs; (2) an updated
regulatory fee for Direct Broadcast
Satellite (DBS) providers, a subcategory
in the cable television and Internet
Protocol Television (IPTV) category; and
(3) adjustments to the regulatory fees on
radio and television broadcasters, based
1 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).
2 Assessment and Collection of Regulatory Fees
for Fiscal Year 2016, Notice of Proposed
Rulemaking, MD Docket No. 16–166, 81 FR 35680
(2016) (FY 2016 NPRM).
3 5 U.S.C. 604.
4 47 U.S.C. 159.
5 47 U.S.C. 159(a).
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
C. Description and Estimate of the
Number of Small Entities to Which the
Rules Will Apply
5. 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.6 The RFA generally defines the
term ‘‘small entity’’ as having the same
meaning as the terms ‘‘small business,’’
‘‘small organization,’’ and ‘‘small
governmental jurisdiction.’’ 7 In
addition, the term ‘‘small business’’ has
the same meaning as the term ‘‘small
business concern’’ under the Small
Business Act.8 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.9 Nationwide,
there are a total of approximately 27.9
million small businesses, according to
the SBA.10
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
65
U.S.C. 603(b)(3).
U.S.C. 601(6).
8 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.’’
9 15 U.S.C. 632.
10 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ https://www.sba.gov/sites/
default/files/FAQ_Sept_2012.pdf.
75
PO 00000
Frm 00089
Fmt 4700
Sfmt 4700
114,700
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.’’ 11 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.12 Census data
for 2012 shows that there were 3,117
firms that operated that year. Of this
total, 3,083 operated with fewer than
1,000 employees.13 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
Wired Telecommunications Carriers as
defined in paragraph 6 of this FRFA.
Under the applicable SBA size standard,
such a business is small if it has 1,500
or fewer employees.14 According to
Commission data, census data for 2012
shows that there were 3,117 firms that
operated that year. Of this total, 3,083
operated with fewer than 1,000
employees.15 The Commission therefore
estimates that most providers of local
exchange carrier service are small
entities that may be affected by the rules
adopted.
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
11 https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
12 See 13 CFR 120.201, NAICS Code 517110.
13 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ5&prodType=table.
14 13 CFR 121.201, NAICS code 517110.
15 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml
?pid=ECN_2012_US_51SSSZ5&prodType=table.
E:\FR\FM\26SER1.SGM
26SER1
65942
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
defined in paragraph 6 of this FRFA.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.16 According to Commission
data, 3,117 firms operated in that year.
Of this total, 3,083 operated with fewer
than 1,000 employees.17 Consequently,
the Commission estimates that most
providers of incumbent local exchange
service are small businesses that may be
affected by the rules and policies
adopted. Three hundred and seven (307)
Incumbent Local Exchange Carriers
reported that they were incumbent local
exchange service providers.18 Of this
total, an estimated 1,006 have 1,500 or
fewer employees.19
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 FRFA. Under that size standard,
such a business is small if it has 1,500
or fewer employees.20 U.S. Census data
for 2012 indicate that 3,117 firms
operated during that year. Of that
number, 3,083 operated with fewer than
1,000 employees.21 Based on this data,
the Commission concludes that the
majority of Competitive LECS, CAPs,
Shared-Tenant Service Providers, and
Other Local Service Providers, are small
entities. According to Commission data,
1,442 carriers reported that they were
engaged in the provision of either
competitive local exchange services or
competitive access provider services.22
Of these 1,442 carriers, an estimated
1,256 have 1,500 or fewer employees.23
In addition, 17 carriers have reported
that they are Shared-Tenant Service
Providers, and all 17 are estimated to
have 1,500 or fewer employees.24 Also,
72 carriers have reported that they are
Other Local Service Providers.25 Of this
16 13
CFR 121.201, NAICS code 517110.
mstockstill on DSK3G9T082PROD with RULES
17 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ5&prodType=table.
18 See Trends in Telephone Service, Federal
Communications Commission, Wireline
Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (September 2010)
(Trends in Telephone Service).
19 Id.
20 13 CFR 121.201, NAICS code 517110.
21 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ5&prodType=table.
22 See Trends in Telephone Service, at Table 5.3.
23 Id.
24 Id.
25 Id.
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
total, 70 have 1,500 or fewer
employees.26 Consequently, based on
internally researched FCC data, the
Commission estimates that most
providers of competitive local exchange
service, competitive access providers,
Shared-Tenant Service Providers, and
Other Local Service Providers are small
entities.
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 FRFA. The
applicable size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.27 U.S.
Census data for 2012 indicates that
3,117 firms operated during that year.
Of that number, 3,083 operated with
fewer than 1,000 employees.28
According to internally developed
Commission data, 359 companies
reported that their primary
telecommunications service activity was
the provision of interexchange
services.29 Of this total, an estimated
317 have 1,500 or fewer employees.30
Consequently, the Commission
estimates that the majority of
interexchange service providers are
small entities that may be affected by
the rules adopted.
11. Prepaid Calling Card Providers.
Neither the Commission nor the SBA
has developed a small business
definition specifically for prepaid
calling card providers. The most
appropriate NAICS code-based category
for defining 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.
Establishments in this industry resell
telecommunications; they do not
operate transmission facilities and
infrastructure. Mobile virtual networks
operators (MVNOs) are included in this
industry.31 Under the applicable SBA
size standard, such a business is small
26 Id.
27 13
CFR 121.201, NAICS code 517110.
AM radio, FM radio, television
(including low power and Class A), TV/FM
translators and boosters, cable and IPTV, DBS, and
Cable Television Relay Service (CARS) licenses.
29 See Trends in Telephone Service, at Table 5.3.
30 Id.
31 https://www.census.gov/cgi-bin/ssd/naics/
naicsrch.
28 Includes
PO 00000
Frm 00090
Fmt 4700
Sfmt 4700
if it has 1,500 or fewer employees.32
U.S. Census data for 2012 show that
1,341 firms provided resale services
during that year. Of that number, 1,341
operated with fewer than 1,000
employees.33 Thus, under this category
and the associated small business size
standard, the majority of these prepaid
calling card providers can be considered
small entities. According to Commission
data, 193 carriers have reported that
they are engaged in the provision of
prepaid calling cards.34 All 193 carriers
have 1,500 or fewer employees.35
Consequently, the Commission
estimates that the majority of prepaid
calling card providers are small entities
that may be affected by the rules
adopted.
12. Local Resellers. Neither the
Commission nor the SBA has developed
a small business size standard
specifically for 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.36 Census data for 2012 show
that 1,341 firms provided resale services
during that year. Of that number, 1,341
operated with fewer than 1,000
employees.37 Under this category and
the associated small business size
standard, the majority of these local
resellers can be considered small
entities. According to Commission data,
213 carriers have reported that they are
engaged in the provision of local resale
services.38 Of this total, an estimated
211 have 1,500 or fewer employees.39
Consequently, the Commission
estimates that the majority of local
resellers are small entities that may be
affected by the rules adopted.
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.40 Under that size standard,
such a business is small if it has 1,500
32 13
CFR 121.201, NAICS code 517911.
33 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ5&prodType=table.
34 See Trends in Telephone Service, at Table 5.3.
35 Id.
36 13 CFR 121.201, NAICS code 517911.
37 https://factfinder.census.gov/faces/tableservices
/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ5&prodType=table.
38 See Trends in Telephone Service, at Table 5.3.
39 Id.
40 13 CFR 121.201, NAICS code 517911.
E:\FR\FM\26SER1.SGM
26SER1
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
mstockstill on DSK3G9T082PROD with RULES
or fewer employees.41 Census data for
2012 show that 1,341 firms provided
resale services during that year. Of that
number, 1,341 operated with fewer than
1,000 employees.42 Thus, under this
category and the associated small
business size standard, the majority of
these resellers can be considered small
entities. According to Commission data,
881 carriers have reported that they are
engaged in the provision of toll resale
services.43 Of this total, an estimated
857 have 1,500 or fewer employees.44
Consequently, the Commission
estimates that the majority of toll
resellers are small entities.
14. Other Toll Carriers. Neither the
Commission nor the SBA has developed
a definition for small businesses
specifically applicable to Other Toll
Carriers. This category includes toll
carriers that do not fall within the
categories of interexchange carriers,
operator service providers, prepaid
calling card providers, satellite service
carriers, or toll resellers. The closest
applicable NAICS Code category is for
Wired Telecommunications Carriers as
defined in paragraph 6 of this FRFA.
Under the applicable SBA size standard,
such a business is small if it has 1,500
or fewer employees.45 Census data for
2012 shows that there were 3,117 firms
that operated that year. Of this total,
3,083 operated with fewer than 1,000
employees.46 Thus, under this category
and the associated small business size
standard, the majority of Other Toll
Carriers can be considered small.
According to internally developed
Commission data, 284 companies
reported that their primary
telecommunications service activity was
the provision of other toll carriage.47 Of
these, an estimated 279 have 1,500 or
fewer employees.48 Consequently, the
Commission estimates that most Other
Toll Carriers are small entities.
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.
Establishments in this industry have
spectrum licenses and provide services
using that spectrum, such as cellular
services, paging services, wireless
Internet access, and wireless video
services.49 The appropriate size
standard under SBA rules is that such
a business is small if it has 1,500 or
fewer employees. For this industry,
Census data for 2012 show that there
were 967 firms that operated for the
entire year. Of this total, 955 firms had
fewer than 1,000 employees. Thus
under this category and the associated
size standard, the Commission estimates
that the majority of wireless
telecommunications carriers (except
satellite) are small entities. Similarly,
according to internally developed
Commission data, 413 carriers reported
that they were engaged in the provision
of wireless telephony, including cellular
service, Personal Communications
Service (PCS), and Specialized Mobile
Radio (SMR) services.50 Of this total, an
estimated 261 have 1,500 or fewer
employees.51 Thus, using available data,
we estimate that the majority of wireless
firms can be considered small.
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.’’ 52 These establishments also
produce or transmit visual programming
to affiliated broadcast television
stations, which in turn broadcast the
programs to the public on a
predetermined schedule. Programming
may originate in their own studio, from
an affiliated network, or from external
sources. The SBA has created the
following small business size standard
for Television Broadcasting firms: Those
having $38.5 million or less in annual
receipts.53 The 2012 Economic Census
reports that 751 television broadcasting
firms operated during that year. Of that
number, 656 had annual receipts of less
than $25 million per year. Based on that
Census data we conclude that a majority
of firms that operate television stations
are small. The Commission has
estimated the number of licensed
commercial television stations to be
1,387.54 In addition, according to
41 https://factfinder.census.gov/faces/tableservices
/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ5&prodType=table.
42 Id.
43 Trends in Telephone Service, at Table 5.3.
44 Id.
45 13 CFR 121.201, NAICS code 517110.
46 https://factfinder.census.gov/faces/tableservices
/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ5&prodType=table.
47 Trends in Telephone Service, at Table 5.3.
48 Id.
49 NAICS Code 517210. See https://
www.census.gov/cgi-bin/ssd/naics/naiscsrch.
50 Trends in Telephone Service, at Table 5.3.
51 Id.
52 U.S. Census Bureau, 2012 NAICS Code
Economic Census Definitions, https://
www.census.gov.cgi-bin/sssd/naics/naicsrch.
53 13 CFR 121.201, NAICS code 515120.
54 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.
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
PO 00000
Frm 00091
Fmt 4700
Sfmt 4700
65943
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.55 We therefore
estimate that the majority of commercial
television broadcasters are small
entities.
17. In assessing whether a business
concern qualifies as small under the
above definition, business (control)
affiliations 56 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 396.57 These
stations are non-profit, and therefore
considered to be small entities.58 There
are also 2,528 low power television
stations, including Class A stations
(LPTV).59 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 Stations. 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
55 We recognize that BIA’s estimate differs
slightly from the FCC total given supra.
56 ‘‘[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).
57 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.
58 See generally 5 U.S.C. 601(4), (6).
59 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.
E:\FR\FM\26SER1.SGM
26SER1
65944
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
mstockstill on DSK3G9T082PROD with RULES
network, or from external sources.’’ 60
The SBA has established a small
business size standard for this category,
which is: Such firms having $38.5
million or less in annual receipts.61
Census data for 2012 show that 2,849
radio station firms operated during that
year. Of that number, 2,806 operated
with annual receipts of less than $25
million per year.62 According to
Commission staff review of BIA
Advisory Services, LLC’s Media Access
Pro Radio Database, on March 28, 2012,
about 10,759 (97 percent) of 11,102
commercial radio stations had revenues
of $38.5 million or less. Therefore, the
majority of such entities are small
entities.
20. In assessing whether a business
concern qualifies as small under the
above size standard, business
affiliations must be included.63 In
addition, to be determined to be a
‘‘small business,’’ the entity may not be
dominant in its field of operation.64 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 overinclusive.
21.Cable Television and Other
Subscription Programming. This
industry comprises establishments
primarily engaged in operating studios
and facilities for the broadcasting of
programs on a subscription or fee basis.
The broadcast programming is typically
narrowcast in nature (e.g., limited
format, such as news, sports, education,
or youth-oriented). These
establishments produce programming in
their own facilities or acquire
programming from external sources. The
programming material is usually
delivered to a third party, such as cable
systems or direct-to-home satellite
systems, for transmission to viewers.65
The SBA has established a size standard
for this industry of $38.5 million or less.
Census data for 2012 shows that there
were 367 firms that operated that year.
Of this total, 319 operated with annual
60 https://www.census.gov.cgi-bin/sssd/naics/
naicsrch.
61 13 CFR 121.201, NAICS code 515112.
62 https://factfinder.census.gov/faces/tableservices
/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ5&prodType=table.
63 ‘‘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).
64 13 CFR 121.102(b) (an SBA regulation).
65 https://www.census.gov.cgi-bin/sssd/naics/
naicsrch.
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
receipts of less than $25 million.66 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.
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.67
Industry data indicate that there are
currently 4,600 active cable systems in
the United States.68 Of this total, all but
ten cable operators nationwide are small
under the 400,000-subscriber size
standard.69 In addition, under the
Commission’s rate regulation rules, a
‘‘small system’’ is a cable system serving
15,000 or fewer subscribers.70 Current
Commission records show 4,600 cable
systems nationwide.71 Of this total,
3,900 cable systems have fewer than
15,000 subscribers, and 700 systems
have 15,000 or more subscribers, based
on the same records.72 Thus, under this
standard as well, we estimate that most
cable systems are small entities.
23. Cable System Operators (Telecom
Act Standard). The Communications
Act 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.’’ 73
There are approximately 52,403,705
cable video subscribers in the United
States today.74 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.75 Based on available data,
we find that all but nine incumbent
66 https://factfinder.census.gov/faces/tableservices
/jsf/pages/productview.xhtml?pid=ECN_2012_US51SSSZ5&prodType=Table.
67 47 CFR 76.901(e).
68 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.
69 See SNL KAGAN at www.snl.com/interactiveX
/top cableMSOs aspx?period2015Q1&sortcol
=subscribersbasic&sortorder=desc.
70 47 CFR 76.901(c).
71 See footnote 2, supra.
72 August 5, 2015 report from the Media Bureau
based on its research in COALS. See www.fcc.gov/
coals.
73 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
74 See SNL KAGAN at www.snl.com/interactivex/
MultichannelIndustryBenchmarks.aspx.
75 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
PO 00000
Frm 00092
Fmt 4700
Sfmt 4700
cable operators are small entities under
this size standard.76 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.77 Although it
seems certain that some of these cable
system operators are affiliated with
entities whose gross annual revenues
exceed $250 million, 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
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.78
The SBA determines that a wireline
business is small if it has fewer than
1,500 employees.79 Census data for 2012
indicate that 3,117 wireline companies
were operational during that year. Of
that number, 3,083 operated with fewer
than 1,000 employees.80 Based on that
data, we conclude that the majority of
76 See SNL KAGAN at www.snl.com/interactivex/
TopCable MSOs.aspx.
77 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).
78 https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
79 NAICs CODE 517110; 13 CFR 121.201.
80 https://factfinder.census.gov/faces/
tableservices.jasf/pages/productview.xhtml?pid+
ECN_2012_US.51SSSZ4&prodType=table.
E:\FR\FM\26SER1.SGM
26SER1
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
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: AT&T and DISH Network.81
AT&T 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.82 The SBA has developed a
small business size standard for ‘‘All
Other Telecommunications,’’ which
consists of all such firms with gross
annual receipts of $32.5 million or
less.83 For this category, census data for
2012 show that there were 1,442 firms
that operated for the entire year. Of
these firms, a total of 1,400 had gross
annual receipts of less than $25
million.84 Thus, a majority of ‘‘All Other
Telecommunications’’ firms potentially
affected by the rules adopted can be
considered small.
26. RespOrgs. RespOrgs, i.e.,
Responsible Organizations, 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.85 Although RespOrgs are
often wireline carriers, they can also
include non-carrier entities. Therefore,
in the definition herein of RespOrgs,
two categories are presented, i.e., Carrier
RespOrgs and Non-Carrier RespOrgs.
27. Carrier RespOrgs. Neither the
Commission, the U.S. Census, nor the
SBA have developed a definition for
Carrier RespOrgs. Accordingly, the
Commission believes that the closest
NAICS Code-based definitional
categories for Carrier RespOrgs are
Wired Telecommunications Carriers,86
and Wireless Telecommunications
Carriers (except satellite).87
28. The U.S. Census Bureau defines
Wired Telecommunications Carriers 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.88 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.89 Census data
for 2012 show that there were 3,117
Wired Telecommunications Carrier
firms that operated for that entire year.
Of that number, 3,083 operated with
less than 1,000 employees.90 Based on
that data, we conclude that the majority
of Carrier RespOrgs that operated with
wireline-based technology are small.
29. The U.S. Census Bureau defines
Wireless Telecommunications Carriers
(except satellite) as 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.91 The
appropriate size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.92
86 13
CFR 121.201, NAICS Code 517110.
CFR 121.201, NAICS Code 517210.
88 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
89 13 CFR 120,201, NAICS Code 517110.
90 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ4&prodType=table.
91 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
92 13 CFR 120.201, NAICS Code 517120.
mstockstill on DSK3G9T082PROD with RULES
87 13
81 See 15th Annual Video Competition Report, 28
FCC Rcd at 1057, Section 27.
82 https://www.census.gov/cgi-bin/ssssd/naics/
naicsrch.
83 13 CFR 121.201; NAICS Code 517919.
84 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ4&prodType=table.
85 See 47 CFR 52.101(b).
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
PO 00000
Frm 00093
Fmt 4700
Sfmt 4700
65945
Census data for 2012 show that 967
Wireless Telecommunications Carriers
operated in that year. Of that number,
955 operated with less than 1,000
employees.93 Based on that data, we
conclude that the majority of Carrier
RespOrgs that operated with wirelessbased technology are small.
30. Non-Carrier RespOrgs. Neither the
Commission, the Census, nor the SBA
have developed a definition of NonCarrier RespOrgs. Accordingly, the
Commission believes that the closest
NAICS Code-based definitional
categories for Non-Carrier RespOrgs are
‘‘Other Services Related To
Advertising’’ 94 and ‘‘Other Management
Consulting Services.’’ 95
31. The U.S. Census defines Other
Services Related to Advertising as
comprising establishments primarily
engaged in providing advertising
services (except advertising agency
services, public relations agency
services, media buying agency services,
media representative services, display
advertising services, direct mail
advertising services, advertising
material distribution services, and
marketing consulting services? 96 The
SBA has established a size standard for
this industry as annual receipts of $15
million dollars or less.97 Census data for
2012 show that 5,804 firms operated in
this industry for the entire year. Of that
number, 5,249 operated with annual
receipts of less than $10 million.98
Based on that data we conclude that the
majority of Non-Carrier RespOrgs who
provide TFN-related advertising
services are small.
32. The U.S. Census defines Other
Management Consulting Services as
establishments primarily engaged in
providing management consulting
services (except administrative and
general management consulting; human
resources consulting; marketing
consulting; or process, physical
distribution, and logistics consulting).
Establishments providing
telecommunications or utilities
management consulting services are
included in this industry.99 The SBA
has established a size standard for this
industry of $15 million dollars or
93 https://factfinder.census.gov/faces/tableservices
/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ4&prodType=table.
94 13 CFR 120.201, NAICS Code 541890.
95 13 CFR 120.201, NAICS Code 541618.
96 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
97 13 CFR 120.201, NAICS Code 541890.
98 https://factfinder.census.gov/faces/tableservices
/jsf/pages/productview.xhtml?pid=ECN_2012_US_
51SSSZ4&prodType=table.
99 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
E:\FR\FM\26SER1.SGM
26SER1
65946
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
less.100 Census data for 2012 show that
3,683 firms operated in this industry for
that entire year. Of that number, 3,632
operated with less than $10 million in
annual receipts.101 Based on this data,
we conclude that a majority of noncarrier RespOrgs who provide TFNrelated management consulting services
are small.102
33. In addition to the data contained
in the four (see above) U.S. Census
NAICS Code categories that provide
definitions of what services and
functions the Carrier and Non-Carrier
RespOrgs provide, Somos, the trade
association that monitors RespOrg
activities, compiled data showing that
as of July 1, 2016 there were 23
RespOrgs operational in Canada and 436
RespOrgs operational in the United
States, for a total of 459 RespOrgs
currently registered with Somos.103
D. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
34. This Report and Order does not
adopt any new reporting, recordkeeping,
or other compliance requirements.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
35. 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.104
36. This Report and Order does not
adopt any new reporting requirements.
Therefore no adverse economic impact
on small entities will be sustained based
on reporting requirements.
37. In keeping with the requirements
of the Regulatory Flexibility Act, we
have considered certain alternative
means of mitigating the effects of fee
increases to a particular industry
segment. For example, beginning last
year, in FY 2015, the Commission
increased the de minimis threshold from
under $10 to $500 (the total of all
annual regulatory fees), which will
impact many small entities that pay
regulatory fees for ITSP, paging,
cellular, cable, and Low Power
Television/FM Translators. Historically,
many of these small entities have been
late in making their fee payments to the
Commission by the due date. This
increase in the de minimis threshold to
$500 will relieve regulatees both
financially and administratively. This
Report and Order also adopts regulatory
fees for the smaller market AM and FM
stations at a lower amount than had
been proposed. Finally, regulatees may
also seek waivers or other relief on the
basis of financial hardship. See 47 CFR
1.1166.
F. Federal Rules That May Duplicate,
Overlap, or Conflict
38. None.
VIII. Ordering Clauses
39. Accordingly, IT IS ORDERED that,
pursuant to Sections 4(i) and (j), 9, and
303(r) of the Communications Act of
1934, as amended, 47 U.S.C. 154(i),
154(j), 159, and 303(r), this Report and
Order IS HEREBY ADOPTED.
40. IT IS FURTHER ORDERED that
this Report and Order SHALL BE
EFFECTIVE September 26, 2016.
41. IT IS FURTHER ORDERED that
the Commission’s Consumer &
Governmental Affairs Bureau, Reference
Information Center, SHALL SEND a
copy of this Report and Order,
including the Final Regulatory
Flexibility Analysis, to the Chief
Counsel for Advocacy of the U.S. Small
Business Administration.
List of Subjects in 47 CFR Part 1
Administrative practice and
procedure, Radio, Reporting and
recordkeeping requirements.
Federal Communications Commission.
Marlene H. Dortch.
Secretary.
Rule Changes
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR, part 1 as
follows:
PART 1—PRACTICE AND
PROCEDURE
1. The authority citation for part 1
continues to read as follows:
■
Authority: 47 U.S.C. 151, 154(i), 155, 157,
225, 303(r), 309, 1403, 1404, 1451, and 1452.
2. Section 1.1152 is revised to read as
follows:
■
§ 1.1152 Schedule of annual regulatory
fees for wireless radio services.
mstockstill on DSK3G9T082PROD with RULES
Exclusive use services
(per license)
Fee amount 1
1. Land Mobile (Above 470 MHz and 220 MHz Local, Base Station & SMRS) (47 CFR part 90)
(a) New, Renew/Mod (FCC 601 & 159) ..........................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .............................................................................................................
(c) Renewal Only (FCC 601 & 159) ................................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...................................................................................................................
220 MHz Nationwide:
(a) New, Renew/Mod (FCC 601 & 159) ..........................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .............................................................................................................
(c) Renewal Only (FCC 601 & 159) ................................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...................................................................................................................
2. Microwave (47 CFR Pt. 101) (Private)
(a) New, Renew/Mod (FCC 601 & 159) ..........................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .............................................................................................................
(c) Renewal Only (FCC 601 & 159) ................................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...................................................................................................................
3. Shared Use Services Land Mobile (Frequencies Below 470 MHz—except 220 MHz)
100 13
CFR 120.201, NAICS CODE 514618.
101 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid
=ECN_2012_US_51SSSZ4&prodType=table.
102 The four NAICS Code-based categories
selected above to provide definitions for Carrier and
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
Non-Carrier RespOrgs were selected because as a
group they refer generically and comprehensively to
all RespOrgs. Therefore, all RespOrgs, including
those not identified specifically or individually,
must comply with the rules adopted in the
PO 00000
Frm 00094
Fmt 4700
Sfmt 4700
$25.00
25.00
25.00
25.00
25.00
25.00
25.00
25.00
25.00
25.00
25.00
25.00
Regulatory Fees Report and Order associated with
this Final Regulatory Flexibility Analysis.
103 Email from Jennifer Blanchard of Somos dated
July 1, 2016.
104 5 U.S.C. 603(c)(1) through (c)(4).
E:\FR\FM\26SER1.SGM
26SER1
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
Exclusive use services
(per license)
65947
Fee amount 1
(a) New, Renew/Mod (FCC 601 & 159) ..........................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) .............................................................................................................
(c) Renewal Only (FCC 601 & 159) ................................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...................................................................................................................
Rural Radio (Part 22):
(a) New, Additional Facility, Major Renew/Mod (Electronic Filing) (FCC 601 & 159) ....................................................................
(b) Renewal, Minor Renew/Mod (Electronic Filing) (FCC 601 & 159) Marine Coast .....................................................................
(a) New Renewal/Mod (FCC 601 & 159) ........................................................................................................................................
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159) ..........................................................................................................
(c) Renewal Only (FCC 601 & 159) ................................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 601 & 159) ...................................................................................................................
Aviation Ground:
(a) New, Renewal/Mod (FCC 601 & 159) .......................................................................................................................................
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 159) ..........................................................................................................
(c) Renewal Only (FCC 601 & 159) ................................................................................................................................................
(d) Renewal Only (Electronic Only) (FCC 601 & 159) ....................................................................................................................
Marine Ship
(a) New, Renewal/Mod (FCC 605 & 159) .......................................................................................................................................
(b) New, Renewal/Mod (Electronic Filing) (FCC 605 & 159) ..........................................................................................................
(c) Renewal Only (FCC 605 & 159) ................................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 605 & 159) ...................................................................................................................
Aviation Aircraft:
(a) New, Renew/Mod (FCC 605 & 159) ..........................................................................................................................................
(b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159) .............................................................................................................
(c) Renewal Only (FCC 605 & 159) ................................................................................................................................................
(d) Renewal Only (Electronic Filing) (FCC 605 & 159) ...................................................................................................................
4. CMRS Cellular/Mobile Services (per unit) (FCC 159)
5. CMRS Messaging Services (per unit) (FCC 159)
6. Broadband Radio Service (formerly MMDS and MDS)
7. Local Multipoint Distribution Service
10.00
10.00
10.00
10.00
10.00
10.00
40.00
40.00
40.00
40.00
20.00
20.00
20.00
20.00
15.00
15.00
15.00
15.00
10.00
10.00
10.00
10.00
2 .20
3.08
725
725
1 Note that ‘‘small fees’’ are collected in advance for the entire license term. Therefore, the annual fee amount shown in this table that is a
small fee (categories 1 through 5) must be multiplied by the 10-year license term to arrive at the total amount of regulatory fees owed. Also, application fees may apply as detailed in section 1.1102 of this chapter.
2 These are standard fees that are to be paid in accordance with section 1.1157(b) of this chapter.
3 These are standard fees that are to be paid in accordance with section 1.1157(b) of this chapter.
3. Section 1.1153 is revised to read as
follows:
■
§ 1.1153 Schedule of annual regulatory
fees and filing locations for mass media
services.
mstockstill on DSK3G9T082PROD with RULES
Radio [AM and FM]
(47 CFR part 73)
1. AM Class A:
<=25,000 population .........
25,001–75,000 population
75,001–150,000 population
150,001–500,000 population ..............................
500,001–1,200,000 population ..............................
1,200,001–3,000,000 population ............................
3,000,001–6,000,000 population ............................
>6,000,000 population ......
2. AM Class B:
<=25,000 population .........
25,001–75,000 population
75,001–150,000 population
150,001–500,000 population ..............................
500,001–1,200,000 population ..............................
1,200,001–3,000,000 population ............................
3,000,001–6,000,000 population ............................
>6,000,000 population ......
VerDate Sep<11>2014
20:07 Sep 23, 2016
Fee amount
$990
1,475
2,200
3,300
5,500
8,250
11,000
13,750
715
1,075
1,600
2,375
3,975
5,950
7,950
9,950
Jkt 238001
Radio [AM and FM]
(47 CFR part 73)
Fee amount
3. AM Class C:
<=25,000 population .........
25,001–75,000 population
75,001–150,000 population
150,001–500,000 population ..............................
500,001–1,200,000 population ..............................
1,200,001–3,000,000 population ............................
3,000,001–6,000,000 population ............................
>6,000,000 population ......
4. AM Class D:
<=25,000 population .........
25,001–75,000 population
75,001–150,000 population
150,001–500,000 population ..............................
500,001–1,200,000 population ..............................
1,200,001–3,000,000 population ............................
3,000,001–6,000,000 population ............................
>6,000,000 population ......
5. AM Construction Permit ...
6. FM Classes A, B1 and
C3:
<=25,000 population .........
25,001–75,000 population
75,001–150,000 population
PO 00000
Frm 00095
Fmt 4700
Sfmt 4700
620
925
1,375
2,075
3,450
5,175
6,900
8,625
685
1,025
1,525
2,275
3,800
5,700
7,600
9,500
620
1,075
1,625
2,400
Radio [AM and FM]
(47 CFR part 73)
150,001–500,000 population ..............................
500,001–1,200,000 population ..............................
1,200,001–3,000,000 population ............................
3,000,001–6,000,000 population ............................
>6,000,000 population ......
7. FM Classes B, C, C0, C1
and C2:
<=25,000 population .........
25,001–75,000 population
75,001–150,000 population
150,001–500,000 population ..............................
500,001–1,200,000 population ..............................
1,200,001–3,000,000 population ............................
3,000,001–6,000,000 population ............................
>6,000,000 population ......
8. FM Construction Permits
Fee amount
3,600
6,000
9,000
12,000
15,000
1,250
1,850
2,750
4,125
6,875
10,300
13,750
17,175
1,075
TV (47 CFR, part 73)
Digital TV (UHF and VHF
Commercial Stations):
1. Markets 1 thru 10 .........
2. Markets 11 thru 25 .......
3. Markets 26 thru 50 .......
E:\FR\FM\26SER1.SGM
26SER1
$60,675
45,675
30,525
65948
Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Rules and Regulations
paid by facilities-based common carriers
that have active (used or leased)
international bearer circuits as of
4. Markets 51 thru 100 .....
15,200
December 31 of the prior year in any
5. Remaining Markets .......
5,000
6. Construction Permits ....
5,000 terrestrial or satellite transmission
facility for the provision of service to an
Satellite UHF/VHF Commerend user or resale carrier, which
cial:
1. All Markets ....................
1,750 includes active circuits to themselves or
Low Power TV, Class A
to their affiliates. In addition, nonTV, TV/FM Translator, &
common carrier satellite operators must
TV/FM Booster (47 CFR
pay a fee for each circuit sold or leased
part 74) ..........................
455
to any customer, including themselves
or their affiliates, other than an
■ 4. Section 1.1154 is revised to read as
international common carrier
follows:
authorized by the Commission to
§ 1.1154 Schedule of annual regulatory
provide U.S. international common
charges for common carrier services.
carrier services. ‘‘Active circuits’’ for
these purposes include backup and
Radio facilities
Fee amount
redundant circuits. In addition, whether
circuits are used specifically for voice or
1. Microwave (Domestic
$25.00.
data is not relevant in determining that
Public Fixed) (Electronic
they are active circuits.
Filing) (FCC Form 601 &
159).
(2) The fee amount, per active 64 KB
Carriers
circuit or equivalent will be determined
1. Interstate Telephone
$.00371.
for each fiscal year.
Service Providers (per
Radio [AM and FM]
(47 CFR part 73)
interstate and international end-user revenues (see FCC Form
499–A).
2. Toll Free Number Fee ..
Fee amount
$.13 per Toll
Free Number.
5. Section 1.1155 is revised to read as
follows:
■
§ 1.1155 Schedule of regulatory fees for
cable television services.
Fee amount
1. Cable Television Relay
Service.
2. Cable TV System, Including IPTV (per subscriber).
3. Direct Broadcast Satellite
(DBS).
$775.
$1.00.
$.27 per subscriber.
6. Section 1.1156 is revised to read as
follows:
■
§ 1.1156 Schedule of regulatory fees for
international services.
(a) The following schedule applies for
the listed services:
mstockstill on DSK3G9T082PROD with RULES
Fee category
Space Stations (Geostationary Orbit).
Space Stations (Non-Geostationary Orbit).
Earth Stations: Transmit/Receive & Transmit only (per
authorization or registration).
Fee amount
$138,475.
International terrestrial and
satellite
(capacity as of
December 31, 2015)
Terrestrial Common Carrier
Satellite Common Carrier.
Satellite Non-Common Carrier.
Fee amount
$0.02 per 64
KB Circuit.
(c) Submarine cable: Regulatory fees
for submarine cable systems will be
paid annually, per cable landing license,
for all submarine cable systems
operating as of December 31 of the prior
year. The fee amount will be determined
by the Commission for each fiscal year.
Submarine cable systems
(capacity as of
Dec. 31, 2015)
<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
$8,325.
$16,650.
$33,300.
$66,600.
$133,200.
[FR Doc. 2016–22216 Filed 9–23–16; 8:45 am]
BILLING CODE 6712–01–P
$151,950.
$345.
(b) International Terrestrial and
Satellite. (1) Regulatory fees for
International Bearer Circuits are to be
VerDate Sep<11>2014
20:07 Sep 23, 2016
Jkt 238001
PO 00000
Frm 00096
Fmt 4700
Sfmt 4700
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 64
[CG Docket No. 10–210; FCC 16–101]
Implementation of the Twenty-First
Century Communications and Video
Accessibility Act of 2010, Section 105,
Relay Services for Deaf-Blind
Individuals
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
In this document, the Federal
Communications Commission
(Commission) adopts rules to convert
the National Deaf-Blind Equipment
Distribution Program (NDBEDP) from a
pilot program to a permanent program.
The NDBEDP supports the distribution
of communications devices to lowincome individuals who are deaf-blind.
DATES: The addition of 47 CFR 64.6201,
64.6203, and 64.6205 of the
Commission’s rules are effective July 1,
2017. The addition of 47 CFR part 64,
subpart GG, consisting of §§ 64.6207,
64.6209, 64.6211, 64.6213, 64.6215,
64.6217, and 64.6219, contains
information collection requirements that
are not effective until approved by the
Office of Management and Budget
(OMB). The Commission will publish a
document in the Federal Register
announcing the effective date for those
sections.
FOR FURTHER INFORMATION CONTACT:
Rosaline Crawford, Disability Rights
Office, Consumer and Governmental
Affairs Bureau, at (202) 418–2075 or
email Rosaline.Crawford@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s
Implementation of the Twenty-First
Century Communications and Video
Accessibility Act of 2010, Section 105,
Relay Services for Deaf-Blind
Individuals, Report and Order,
document FCC 16–101, adopted on
August 4, 2016, and released on August
5, 2016, in CG Docket No. 10–210. The
full text of document FCC 16–101 will
be available for public inspection and
copying via ECFS, and during regular
business hours at the FCC Reference
Information Center, Portals II, 445 12th
Street, SW., Room CY–A257,
Washington, DC 20554. Document FCC
16–101 can also be downloaded in
Word or Portable Document Format
(PDF) at https://www.fcc.gov/ndbedp. To
request materials in accessible formats
for people with disabilities (Braille,
large print, electronic files, audio
format), send an email to fcc504@fcc.gov
SUMMARY:
E:\FR\FM\26SER1.SGM
26SER1
]]>Agencies
[Federal Register Volume 81, Number 186 (Monday, September 26, 2016)]
[Rules and Regulations]
[Pages 65926-65948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22216]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 16-166; FCC 16-121]
Assessment and Collection of Regulatory Fees for Fiscal Year 2016
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this document the Commission revises its Schedule of
Regulatory Fees to recover an 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 for annual ``Mandatory
Adjustments'' and ``Permitted Amendments'' to the Schedule of
Regulatory Fees.
DATES: Effective September 26, 2016. To avoid penalties and interest,
regulatory fees should be paid by the due date of September 27, 2016.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order (R&O), FCC 16-121, MD Docket No. 16-166, adopted on September
1, 2016 and released on September 2, 2016.
I. Administrative Matters
A. Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980 (RFA),\1\
the Commission has prepared a Final Regulatory Flexibility Analysis
(FRFA) relating to this Report and Order. The FRFA is located towards
the end of this document.
---------------------------------------------------------------------------
\1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
The SBREFA was enacted as Title II of the Contract with America
Advancement Act of 1996 (CWAAA).
---------------------------------------------------------------------------
B. Final Paperwork Reduction Act of 1995 Analysis
2. This document does not contain new or modified information
collection requirements subject to the Paperwork Reduction Act of 1995
(PRA), Public Law 104-13. In addition, therefore, it does not contain
any new or modified information collection burden for small business
concerns with fewer than 25 employees, pursuant to the Small Business
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C.
3506(c)(4).
C. Congressional Review Act
3. The Commission will send a copy of this Report and Order to
Congress and the Government Accountability Office pursuant to the
Congressional Review Act, 5 U.S.C. 801(a)(1)(A).
II. Introduction
4. This Report and Order adopts a schedule of regulatory fees to
assess and collect $384,012,497.00 in regulatory fees for Fiscal Year
(FY) 2016, pursuant to Section 9 of the Communications Act of 1934, as
amended (Communications Act or Act) and the Commission's FY 2016
Appropriation.\2\ The schedule of regulatory fees for FY 2016 adopted
here is attached in Table 4. These regulatory fees are due on September
27, 2016. The FY 2016 regulatory fees are based on the proposals in the
FY 2016 NPRM,\3\ considered in light of the comments received and
Commission analysis. The FY 2016 regulatory fee schedule includes the
following changes from last year: (1) An increase in regulatory fees
across all fee categories to offset the Commission's facilities
reduction costs; \4\ (2) an updated regulatory fee for Direct Broadcast
Satellite (DBS) providers, a subcategory in the cable television and
Internet Protocol Television (IPTV) category; and (3) adjustments to
the regulatory fees on radio and television broadcasters, based on type
and class of service and on the population served.
---------------------------------------------------------------------------
\2\ 47 U.S.C. 159. Consolidated Appropriations Act, 2016, Public
Law 114-113, Dec. 18, 2015.
\3\ Assessment and Collection of Regulatory Fees for Fiscal Year
2016, Notice of Proposed Rulemaking, 81 FR 35680 (June 3, 2016)
(2016) (FY 2016 NPRM).
\4\ The proposed regulatory fee rates for FY 2016 includes a
one-time amount of $44,168,497 to offset facilities reduction costs,
i.e., to reduce the office space footprint and/or move the FCC
office location if necessary. Consolidated Appropriations Act, 2016,
Public Law 114-113, Dec. 18, 2015. See FCC's Lease Prospectus,
available at https://www.gsa.gov/portal/category/100435.
---------------------------------------------------------------------------
III. Background
5. Congress adopted a regulatory fee schedule in 1993 \5\ and
authorized the Commission to assess and collect annual regulatory fees
pursuant to the schedule, as amended by the Commission.\6\ As a result,
the Commission annually reviews the regulatory fee schedule, proposes
changes to the schedule to reflect changes in the amount of its
appropriation, and proposes increases or decreases to the schedule of
regulatory fees.\7\ The Commission makes changes to the regulatory fee
schedule ``if the Commission determines that the schedule requires
amendment to comply with the requirements'' \8\ of section 9(b)(1)(A)
of the Act.\9\ The Commission may also add, delete, or reclassify
services in the fee schedule to reflect additions, deletions, or
changes in the nature of its services ``as a consequence of Commission
rulemaking proceedings or changes in law.'' Thus,
[[Page 65927]]
for each fiscal year, the Commission proposes a fee schedule in the
annual Notice of Proposed Rulemaking that reflects changes in the
amount appropriated for the performance of the Commission's regulatory
activities, changes in the industries represented by the regulatory fee
payors, changes in FTE \10\ levels, and any other issues of relevance
to the proposed fee schedule.\11\ After reviewing the comments, the
Commission issues a Report and Order adopting the fee schedule for the
fiscal year and sets out the procedures for payment of fees.
---------------------------------------------------------------------------
\5\ 47 U.S.C. 159(g) (showing original fee schedule prior to
Commission amendment).
\6\ 47 U.S.C. 159.
\7\ 47 U.S.C. 159(b)(1)(B).
\8\ 47 U.S.C. 159(b)(2).
\9\ 47 U.S.C. 159(b)(1)(A).
\10\ 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.
\11\ Section 9(b)(2) discusses mandatory amendments to the fee
schedule and Section 9(b)(3) discusses permissive amendments to the
fee schedule. Both mandatory and permissive amendments are not
subject to judicial review. 47 U.S.C. 159(b)(2) and (3).
---------------------------------------------------------------------------
6. The Commission calculates the fees by first determining the
number of FTEs performing the regulatory activities specified in
section 9(a), ``adjusted to take into account factors that are
reasonably related to the benefits provided to the payor of the fee by
the Commission's activities. . . .'' \12\ FTEs are categorized as
``direct'' if they are performing regulatory activities in one of the
``core'' bureaus, i.e., the Wireless Telecommunications Bureau, Media
Bureau, Wireline Competition Bureau, and part of the International
Bureau. All other FTEs are considered ``indirect.'' \13\ The total FTEs
for each fee category is calculated by counting the number of direct
FTEs in the core bureau that regulates that category, plus a
proportional allocation of indirect FTEs. Next, the Commission
allocates the total amount to be collected among the various regulatory
fee categories. This allocation is based on the number of FTEs assigned
to work in each regulatory fee category. Each regulatee within a fee
category pays its proportionate share based on an objective measure,
e.g., revenues, number of subscribers, or licenses.\14\
---------------------------------------------------------------------------
\12\ 47 U.S.C. 159(b)(1)(A). When section 9 was adopted, the
total FTEs were to be calculated based on the number of FTEs in the
Private Radio Bureau, Mass Media Bureau, and Common Carrier Bureau.
(The names of these bureaus were subsequently changed.) Satellites,
earth stations, and international bearer circuits were regulated
through the Common Carrier Bureau before the International Bureau
was created.
\13\ The indirect FTEs are the employees from the International
Bureau (in part), Enforcement Bureau, Consumer & Governmental
Affairs Bureau, Public Safety & Homeland Security Bureau, Chairman
and Commissioners' offices, Office of the Managing Director, Office
of General Counsel, Office of the Inspector General, Office of
Communications Business Opportunities, Office of Engineering and
Technology, Office of Legislative Affairs, Office of Strategic
Planning and Policy Analysis, Office of Workplace Diversity, Office
of Media Relations, and Office of Administrative Law Judges,
totaling 1,046 indirect FTEs.
\14\ See Assessment and Collection of Regulatory Fees, Notice of
Proposed Rulemaking, 27 FCC Rcd 8458, 8461-62, paragraphs 8-11
(2012) (FY 2012 NPRM).
---------------------------------------------------------------------------
7. As part of its annual review, the Commission regularly seeks to
improve its regulatory fee analysis.\15\ For example, in FY 2013, the
Commission updated FTE allocations to more accurately reflect the
number of FTEs working on regulation and oversight of the regulatees in
the various fee categories, and now updates the FTE allocations
annually; \16\ combined the UHF and VHF television stations into one
regulatory fee category; \17\ and included IPTV in the cable television
fee category.\18\ In FY 2014, we adopted a new fee category for toll
free numbers, in the ITSP fee category; \19\ increased the de minimis
threshold; \20\ and eliminated several categories from the regulatory
fee schedule.\21\ In FY 2015, we added a subcategory for DBS providers
in the cable television and IPTV regulatory fee category.\22\
---------------------------------------------------------------------------
\15\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, MD Docket No. 08-65, Report and Order and Further Notice
of Proposed Rulemaking, 24 FCC Rcd 6388 (2008) (FY 2008 Further
Notice).
\16\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2013, MD Docket No. 08-65, Report and Order, 28 FCC Rcd 12351,
12354-58, paragraphs 10-20 (2013) (FY 2013 Report and Order).
\17\ FY 2013 Report and Order, 28 FCC Rcd at 12361-62,
paragraphs 29-31.
\18\ Id., 28 FCC Rcd at 12362-63, paragraphs 32-33.
\19\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2014, Report and Order and Further Notice of Proposed
Rulemaking, 29 FCC Rcd 10767, 10777-79, paras. 25-28 (2014) (FY 2014
Report and Order).
\20\ FY 2014 Report and Order, 29 FCC Rcd at 10774-76,
paragraphs 18-21.
\21\ Id., 29 FCC Rcd at 10776-77, paragraphs 22-24.
\22\ 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, paragraphs 28-41 (2015) (FY 2015
NPRM). We also eliminated two additional fee categories. See FY 2015
NPRM, 30 FCC Rcd at 5361-62, paragraphs 19-22.
---------------------------------------------------------------------------
8. In our FY 2016 NPRM, we proposed to collect $384,012,497.00 in
regulatory fees and included a detailed, proposed fee schedule. We
received 17 comments and 10 reply comments.\23\
---------------------------------------------------------------------------
\23\ Commenters to the FY 2016 NPRM are listed in Table 2.
---------------------------------------------------------------------------
IV. Discussion
9. In this FY 2016 Report and Order, we adopt a regulatory fee
schedule for FY 2016, pursuant to section 9 of the Communications Act
and our FY 2016 appropriation statute in order to collect
$384,012,497.00 in regulatory fees.\24\ Of this amount, we project
approximately $21.3 million (5.6 percent of the total FTE allocation)
in fees from the International Bureau regulatees; \25\ $83.1 million
(21.6 percent of the total FTE allocation) in fees from the Wireless
Telecommunications Bureau regulatees; \26\ $146.5 million (38.0 percent
of the total FTE allocation) from Wireline Competition Bureau
regulatees; \27\ and $134.0 million (34.8 percent of the total FTE
allocation) from the Media Bureau regulatees.\28\ These regulatory fees
are due on September 27, 2016. The schedule of regulatory fees for FY
2016 adopted here is attached as Table 4.
---------------------------------------------------------------------------
\24\ Section 9 regulatory fees are mandated by Congress and
collected to recover the regulatory costs associated with the
Commission's enforcement, policy and rulemaking, user information,
and international activities. 47 U.S.C. 159(a). See Consolidated
Appropriations Act, 2016, Public Law 114-113, Dec. 18, 2015,
requiring the Commission to collect, for FY 2016, $339,844,000 for
operational expenses and an additional one time amount of
$44,168,497 to offset facilities reduction costs.
\25\ Includes satellites, earth stations, and international
bearer circuits (submarine cable systems and satellite and
terrestrial bearer circuits).
\26\ Includes Commercial Mobile Radio Service (CMRS), CMRS
messaging, Broadband Radio Service/Local Multipoint Distribution
Service (BRS/LMDS), and multi-year wireless licensees.
\27\ Includes Interstate Telecommunications Service Providers
(ITSP) and toll free numbers.
\28\ Includes AM radio, FM radio, television (including low
power and Class A, TV/FM translators and boosters, cable and IPTV,
DBS, and Cable Television Relay Service (CARS) licenses.
---------------------------------------------------------------------------
1. Facilities Reduction
10. The 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 costs, i.e., to reduce the FCC's office
space footprint and/or move the FCC office location.\29\ Due to the
facilities reduction costs, regulatees' aggregate fees by category
increased on average by approximately 11-13 percent for 2016. Some
commenters disagree with this approach.\30\ We are, however, required
by Congress to collect this amount for FY 2016.\31\
---------------------------------------------------------------------------
\29\ Consolidated Appropriations Act, 2016, Public Law 114-113,
Dec. 18, 2015. See FCC's Lease Prospectus, available at https://www.gsa.gov/portal/category/100435.
\30\ See, e.g., PMCM TV Comments at 2 (``Congress has never
given the Commission a carte blanche to recover all of its costs
through the regulatory fee mechanism.''); AT&T Comments at 3 (``This
sum is especially unsuitable for inclusion in the regulatory fee
request.'').
\31\ Consolidated Appropriations Act, 2016, Public Law 114-113,
Dec. 18, 2015.
---------------------------------------------------------------------------
[[Page 65928]]
2. Toll Free Numbers
11. In the FY 2014 Report and Order,\32\ we adopted a regulatory
fee category for each toll free number managed by a RespOrg.\33\ In the
FY 2015 Report and Order, we adopted a regulatory fee of 12 cents per
toll free number.\34\ We proposed a regulatory fee of 13 cents per toll
free number in the FY 2016 NPRM.\35\ AT&T objects to the increase from
12 cents to 13 cents per year, and contends that we have not
demonstrated increased regulatory oversight of RespOrgs to justify this
increase.\36\ We identified in the FY 2016 NPRM that regulatory fees
increased for all regulatee categories due to the one time increase for
facilities reduction costs,\37\ which includes a one cent fee increase
for toll free numbers. Pursuant to our obligations under section 9 of
the Act and related Commission orders, we therefore adopt the fee
proposed in the FY 2016 NPRM.\38\
---------------------------------------------------------------------------
\32\ FY 2014 Report and Order, 29 FCC Rcd at 10777-79,
paragraphs 25-28. We adopted this category for working, assigned,
and reserved toll free numbers and for toll free numbers that are in
the ``transit'' status, or any other status as defined in section
52.103 of the Commission's rules. The regulatory fee is limited to
toll free numbers that are accessible within the United States.
\33\ A Responsible Organization or RespOrg is a company that
manages toll free telephone numbers for subscribers. RespOrgs use
the SMS/800 database to verify the availability of specific numbers
and to reserve the numbers for subscribers. See 47 CFR 52.101(b).
Commission FTEs in the Wireline Competition Bureau and the
Enforcement Bureau work on toll free numbering issues and other
related activities. As a result, the Commission adopted a regulatory
fee for each toll free number controlled or managed by a RespOrg
because many toll free numbers are controlled or managed by RespOrgs
that are not carriers, and therefore, had not been paying regulatory
fees. In the FY 2014 Report and Order, we stated that: ``Based on
evaluation, the FTEs involved in toll free issues are primarily from
the Wireline Competition Bureau. . . . Accordingly, a regulatory fee
assessed on toll free numbers reduces the ITSP regulatory fee
total.'' FY 2014 Report and Order, 29 FCC Rcd at 10778, paragraph 27
(footnote omitted).
\34\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2015, Report and Order and Further Notice of Proposed
Rulemaking, 30 FCC Rcd 10268, 10271-72, para. 9 (2015) (FY 2015
Report and Order).
\35\ FY 2016 NPRM, 81 FR 35680 at 35689, Table 3.
\36\ AT&T Comments at 4. Somos questions the increase and
observes that the Commission's lease after the move (or facilities
reduction) should decrease which should result in lower regulatory
fees in the future. Somos Comments at 2-3.
\37\ FY 2016 NPRM, 81 FR 35680, at 35683, note 20.
\38\ See supra note 23.
---------------------------------------------------------------------------
3. International Bureau Issues
a. International Bearer Circuits
12. 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.\39\ 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.\40\ In the FY 2016
NPRM, and previously in FY 2015 Report and Order, we sought comment on
how to ensure that all providers calculate and report IBCs in the same
manner and how we could improve our requirements and regulatory
treatment of terrestrial and satellite IBC.\41\
---------------------------------------------------------------------------
\39\ See infra paragraph 42.
\40\ Id.
\41\ FY 2016 NPRM, 81 FR 35680 at 35684, paragraphs 20-21.
---------------------------------------------------------------------------
13. We also sought comment on whether to eliminate the distinction
between common carrier terrestrial circuits and non-common carrier
terrestrial circuits for regulatory fee purposes.\42\ In doing so, we
observed the telecommunications industry and Commission's rules have
evolved. We also sought comment on the least burdensome methodology for
calculating fees, whether international revenue rather than the number
of circuits would be a useful data source, and asked how to ensure
accurate reporting of both common carrier and non-common carrier
terrestrial circuits.\43\
---------------------------------------------------------------------------
\42\ The Commission previously 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.''
Assessment and Collection of Regulatory Fees for Fiscal Year 2009,
Report and Order, 24 FCC Rcd 10301, 10306-307, paragraphs 16-17
(2009) (FY 2009 Report and Order). 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,
paragraphs 13-17 (2009) (Submarine Cable Order).
\43\ FY 2016 NPRM, 81 FR at 35680, at 35685, paragraph 21.
---------------------------------------------------------------------------
14. Only Level 3 commented, proposing that we revise our regulatory
fee methodology for terrestrial international bearer circuits and adopt
a flat-fee methodology similar to the method we use to assess fees for
submarine cable systems.\44\ This proposal would include common carrier
and non-common carrier circuits.\45\ Level 3 contends that this would
be simpler to administer and would reduce underreporting.\46\ We agree
with Level 3 that there is need to evaluate the changes in the
international services marketplace and update our fee methodology to
reflect the changes and make it simpler and more efficient to
administer. We find, however, that the record in this proceeding is
insufficient to make any comprehensive changes to the fee methodology
at this time.\47\ To adequately evaluate the changes to the
marketplace, a separate rulemaking proceeding to comprehensively review
the methodology used for assessing fees for terrestrial and satellite
international bearer circuits is needed, including the allocation of
the international bearer circuit fee category between terrestrial and
satellite circuits and submarine cable systems. Accordingly, we make no
changes to fee rules governing the IBCs based on the record in this
proceeding.
---------------------------------------------------------------------------
\44\ Level 3 Comments at 3 (citing Submarine Cable Order).
\45\ Id. at 3, 5.
\46\ Id. at 3-5. Level 3 explains that this proposal would
reduce the burden on payors. Id. at 5.
\47\ We received no comments in response to Level 3's proposed
methodology.
---------------------------------------------------------------------------
b. Earth Stations
15. In the FY 2014 NPRM, we recognized that the International
Bureau's oversight and regulation of the satellite industry involves
FTEs working on legal, technical, and policy issues pertaining to both
space station and earth station operations and is therefore
interdependent to some degree.\48\ For that reason, in the FY 2014
regulatory fee proceeding, we increased the regulatory fees paid by
earth station licensees by approximately 7.5 percent based on analysis
and review of the record.\49\ In the FY 2015 NPRM, we sought comment on
whether to raise the earth station regulatory fees again.\50\ However,
we declined to adopt an increase in fees in FY 2015 due to an ongoing
proceeding concerning part 25 (Satellite Communications) of the
Commission's rules which could affect the distribution of FTE work. In
the FY 2016 NPRM, we sought comment on this issue--specifically on
EchoStar's proposal to assess different levels of regulatory fees on
different types of earth station licenses.\51\
---------------------------------------------------------------------------
\48\ FY 2014 NPRM, 29 FCC Rcd at 6428, paragraph 29.
\49\ See FY 2014 Report and Order, 29 FCC Rcd at 10772-73,
paragraph 12.
\50\ FY 2015 NPRM, 30 FCC Rcd at 5360, paragraph 14.
\51\ See EchoStar July 20, 2015 Ex Parte.
---------------------------------------------------------------------------
16. EchoStar now observes that since it submitted its proposal, we
have adopted reforms that streamlined the
[[Page 65929]]
reporting process for satellite earth stations, which has addressed an
unequal reporting burden and reduced administrative burdens.\52\ For
this reason, EchoStar contends that all satellite earth stations should
have the same regulatory fee, and no longer supports its earlier
proposal.\53\
---------------------------------------------------------------------------
\52\ EchoStar Comments at 3 (discussing elimination of the
annual reporting requirement for blanket FSS earth station licenses
in the 20/30 GHz bands). See also Comprehensive Review of Licensing
and Operation Rules for Satellite Services, Second Report and Order,
30 FCC Rcd 14713 (2015).
\53\ EchoStar Comments at 2-3.
---------------------------------------------------------------------------
17. No parties commented in favor of the proposal. At this time, we
see no basis to assess different levels of regulatory fees on different
types of earth station licensees. Accordingly, we adopt the earth
station fee proposed in the FY 2016 NPRM.
c. Submarine Cable
18. We did not specifically seek comment on issues pertaining to
the submarine cable industry. The proposed rates in the FY 2016 NPRM
contained a fee increase due to the one-time increase for facilities
reduction expenses \54\ and a change in submarine cable units. A group
of submarine cable operators contends that the proposed rate is too
high and not justified.\55\ Specifically, the Submarine Cable Coalition
questions the methodology for the proposed fees and argues that the
proposed fees are disproportionate to the benefits received by
submarine cable operators and the minimal regulatory oversight by the
Commission, after the licensing process.\56\ Further the Submarine
Cable Coalition states that the Commission should not overcharge low-
cost regulatees to subsidize for high-cost regulatees and recommends
that the Commission reduce the regulatory fees commensurate with the
amount of regulatory activity undertaken.\57\ As we have previously
stated, the regulatory fees paid by the submarine cable operators cover
not just the services provided those entities, but also the services
provided to the common carriers that use the submarine cables to
provide service.\58\ The regulatory fees are also not intended to
recover only the costs of Title II regulation, but also the costs of
our enforcement, policy and rulemaking, user information and
international activities that benefit all entities involved in
international telecommunications.\59\ We also note that since release
of the FY 2016 NPRM, the units used to calculate fees has been updated
with more recent data. Accordingly, the fees listed in Table 3 are less
than the amount proposed in the FY 2016 NPRM. Nevertheless, we remind
all regulatees, including submarine cable operators, the FY 2016
regulatory fees include the facilities reduction costs.
---------------------------------------------------------------------------
\54\ FY 2016 NPRM, 81 FR 35680, at 35683, note 20.
\55\ Submarine Cable Coalition Comments at 3-7.
\56\ Id. at 2-4, 6-7.
\57\ Id.
\58\ See FY 2015 Report and Order, 30 FCC Rcd at 10273-74,
paragraph 12.
\59\ Assessment and Collection of Regulatory Fees for Fiscal
Year 1997, MD Docket No. 96-186, Report and Order, 12 FCC Rcd at
17188, paragraphs 68-69 (1997) (FY 1997 Report and Order).
---------------------------------------------------------------------------
4. FTE Reallocations
19. ITTA has proposed in past regulatory fee proceedings that
wireless providers should be combined into the ITSP fee category so
that all voice providers pay regulatory fees on the same basis.\60\
ITTA continues to endorse this approach and contends that the wireline
and wireless voice services are subject to many of the same regulatory
policies, programs, and obligations and therefore combining these voice
services into the ITSP category is an appropriate measure to comply
with section 9 of the Act.\61\ ITTA explains that due to changes in the
communications industry and the convergence of technologies, the
Wireline Competition Bureau FTEs' work is no longer focused on
ITSPs.\62\ According to ITTA, the work performed by Wireline
Competition Bureau FTEs on universal service issues impacts various
types of communications providers, not just ITSPs.\63\
---------------------------------------------------------------------------
\60\ See FY 2015 Report and Order, 30 FCC Rcd at 10281-82,
paragraphs 31-34; FY 2014 NPRM, 29 FCC Rcd at 6430-31, paragraphs
36-39; FY 2013 NPRM, 28 FCC Rcd at 7796, paragraph 12; FY 2008
FNPRM, 24 FCC Rcd at 6404-05, paragraphs 40-41.
\61\ ITTA Comments at 6.
\62\ Id.
\63\ Id. at 7. ITTA also lists other issues that it contends are
within the Wireline Competition Bureau but affect entities that are
not ITSPs, such as number portability, 911 emergency access, special
access, rate integration, customer proprietary network information,
pole attachments, and CALEA. ITTA Comments at 7.
---------------------------------------------------------------------------
20. Certain commenters agree with ITTA's proposals.\64\ For
example, NTCA contends that updating the ITSP category to include
wireless revenues would be a ``rational step.'' \65\ CenturyLink
explains that this would be analogous to including VoIP providers in
the ITSP category and DBS in the cable television/IPTV category.\66\
Frontier states that the work of various Wireline Competition Bureau
divisions is ``inseparable from wireless carriers'' and the divisions
work ``for the benefit of . . . all telecommunications service
providers.'' \67\ These commenters also support allocating Wireless
Telecommunications Bureau FTEs to the Wireline Competition Bureau for
regulatory fee purposes.\68\ In addition, Frontier supports requiring
broadband Internet service providers to pay ITSP regulatory fees.\69\
---------------------------------------------------------------------------
\64\ See, e.g. , NTCA Comments at 2-4; CenturyLink Comments at
1-6; Frontier Comments at 1-9; ACA Comments at 11-14.
\65\ NTCA Comments at 3.
\66\ CenturyLink Comments at 4-5.
\67\ Frontier Comments at 6.
\68\ Frontier Comments at 7-8; NTCA Comments at 3; CenturyLink
Comments at 6-8.
\69\ Frontier Comments at 9.
---------------------------------------------------------------------------
21. ITTA and CenturyLink argue that if wireless and wireline voice
services are not combined in the ITSP category or Wireline Competition
Bureau FTEs are not allocated to the Wireless Telecommunications Bureau
for regulatory fee purposes, we should reassign some Wireline
Competition Bureau FTEs as indirect FTEs.\70\ ITTA contends that the
high-cost and Lifeline universal service programs benefit regulatees in
addition to ITSPs and that we should therefore ``adjust its fee
structure to account for this industry crossover.'' \71\ Commenters
contend that all Wireline Competition Bureau FTEs that work on ``cross-
jurisdictional issues'' such as numbering and universal service should
be reassigned as indirect.\72\
---------------------------------------------------------------------------
\70\ ITTA Comments at 8-9; CenturyLink Comments at 7-8.
\71\ ITTA Comments at 7-8.
\72\ Frontier Comments at 8 & 10; ITTA Comments at 10;
CenturyLink Comments at 7. CenturyLink also contends that FTEs
working on 911 issues should be indirect. CenturyLink Comments at 7.
As CTIA observes, these FTEs are primarily in the Public Safety and
Homeland Security Bureau and are indirect. CTIA Reply Comments at 5.
---------------------------------------------------------------------------
22. CTIA disagrees with the ITTA proposal and contends that there
is no basis to reassign Wireline Competition Bureau FTEs to the
Wireless Telecommunications Bureau because Wireless Telecommunications
Bureau FTEs already participate in wireline proceedings to the extent
they raise wireless issues.\73\ Also, substantial differences exist
between wireless and wireline services concerning regulatory oversight
which militate against combining, based on revenues, the CMRS and ITSP
fee categories.\74\ Wireless providers are not subject to the
regulations and requirements imposed on ITSPs, and logically combining
CMRS into the ITSP category (based on
[[Page 65930]]
revenues) merely because both offer voice services ignores the
fundamental differences in the work done by FTEs in these two
bureaus.\75\ CTIA further contends that there is insufficient
information to support a clear case for the reclassification of FTEs
that work on universal service or numbering issues from direct to
indirect.\76\
---------------------------------------------------------------------------
\73\ CTIA Comments at 2 & Reply Comments at 2. CTIA also
observes that the ITTA proposal would result in CMRS providers
paying regulatory fees based on Wireless Telecommunications Bureau
FTEs and Wireline Competition Bureau FTEs. CTIA Reply Comments at 3.
\74\ CTIA Comments at 2 & Reply Comments at 2-3.
\75\ CTIA Comments at 2-3 (citing FY 2016 NPRM, 31 FCC Rcd at
5765-66, paragraph 18.).
\76\ Id. at 3-5.
---------------------------------------------------------------------------
23. CTIA stresses that the number of FTEs working on any given
issue could change significantly year-to-year depending on the
individual proceedings the Commission undertakes in any given year,
e.g., there has been significant work within the past year on adopting
and implementing various components of the Connect America Fund (CAF),
reforming the Lifeline Program, and implementing procedures to allow
VoIP providers to obtain numbers directly from the numbering
administrator.\77\ CTIA therefore recommends additional detailed
analysis to demonstrate whether and how the number of FTEs working on
particular issues may fluctuate and thus the impact of the potential
reclassification of those FTEs as indirect.\78\
---------------------------------------------------------------------------
\77\ CTIA Comments at 5 & Reply Comments at 3.
\78\ CTIA Comments at 5 & Reply Comments at 3-5.
---------------------------------------------------------------------------
24. The Commission has emphasized that reallocation of some of the
International Bureau's FTEs as indirect was a ``singular case'' because
the work of those International Bureau FTEs ``primarily benefits
licensees regulated by other bureaus.'' \79\ We have further stated,
``apart from the unique nature of the International Bureau FTEs, the
work of all the FTEs in a core bureau contributes to the cost of
regulating and overseeing the licensees of that bureau.'' \80\ We
concluded that ``[g]iven the significant implications of reassignment
of FTEs in our fee calculation, we make changes to FTE classifications
only after performing considerable analysis and finding the clearest
case for reassignment.'' \81\
---------------------------------------------------------------------------
\79\ FY 2013 Report and Order, 28 FCC Rcd at 12355, paragraph
14.
\80\ FY 2015 Report and Order, 30 FCC Rcd at 10274, paragraph
15.
\81\ Id. 30 FCC Rcd at 10274-75, paragraph 15.
---------------------------------------------------------------------------
25. After reviewing the record, we decline to adopt the ITTA
proposal. In particular, we conclude that ITTA's proposal does not
address this issue in a manner that is reasonable and in compliance
with section 9 of the Act. ITTA does not contend that industries other
than those in the ITSP regulatory fee category, i.e., CMRS, are subject
to the oversight and regulation of the Wireline Competition Bureau or
that CMRS creates significant costs for the Wireline Competition Bureau
due to such oversight and regulation. We recognize that the CMRS
industry participates in the universal service Lifeline program, and
that the Wireline Competition Bureau FTEs are responsible for the
oversight and regulation of the universal service mechanisms. We are
not convinced at this time that this relationship is sufficient to
support a reassignment of the FTEs from the Wireline Competition Bureau
to the Wireless Telecommunications Bureau, particularly when the FTEs
closely involved in wireless Lifeline issues are indirect FTEs, in the
Enforcement Bureau and elsewhere, addressing compliance with the
Commission's rules.
26. Further, the number of FTEs working on any given issue changes
significantly depending on the individual proceedings the Commission
undertakes in any given year. We now update FTE allocations on an
annual basis to more accurately reflect the number of FTEs working on
regulation and oversight of the regulatees in the various fee
categories.\82\ To attempt to reallocate Wireline Competition Bureau
FTEs each year based on particular work assignments is a subjective
process that would likely result in unpredictable fluctuations in
regulatory fees from year to year. In addition, to the extent wireline
proceedings raise wireless issues, Wireless Telecommunications Bureau
FTEs already are involved in work related to the wireless issues in
such proceedings.\83\
---------------------------------------------------------------------------
\82\ See FY 2015 Report and Order, 30 FCC Rcd at 10274,
paragraph 15.
\83\ CTIA Comments at 2.
---------------------------------------------------------------------------
27. ITTA's proposals also do not take into account that many
indirect FTEs throughout the Commission outside of the Wireline
Competition Bureau work on universal service and other wireline issues.
For example, indirect FTEs in the Enforcement Bureau, Office of
Managing Director, as well as other bureaus and offices work on various
universal service issues. Therefore, it is incorrect to contend that
primarily FTEs in the Wireline Competition Bureau are devoted to all of
the universal service issues. Further, ITTA's proposal to reassign some
or all of the Wireline Competition Bureau FTEs working on universal
service as indirect FTEs ignores licensees not involved in high-cost
and Lifeline universal service issues, such as radio and television
broadcasters, that would be responsible for contributing to the cost of
those Wireline Competition Bureau FTEs. Although we recognize Wireline
Competition Bureau proceedings can affect other industries, such as
CMRS, we are not convinced that this demonstrates the ``clearest case''
for reassignment of FTEs. For these reasons, we decline to adopt the
ITTA proposal at this time.
5. DBS Rate Issues
28. In 2015, we 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.\84\ At that time, we stated
that we would update the rate as necessary to ensure an appropriate
level of regulatory parity and considering the resources dedicated to
this subcategory.\85\ Such examination is 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.''
\86\ When we adopted this regulatory fee subcategory for DBS, we
observed that numerous regulatory developments had increased the Media
Bureau FTE activity involving regulation and oversight of multichannel
video programming distributors (MVPDs), including DBS providers.\87\
For example, DBS providers (and cable television operators) are
permitted to file program access complaints \88\ and retransmission
consent complaints.\89\ In addition, DBS providers are subject to MVPD
requirements such as those pertaining to program carriage \90\ and the
requirement to negotiate retransmission consent in good faith.\91\ We
also observed that the Commission had recently adopted requirements
that apply to all MVPDs and thus equally apply to DBS providers as part
of its implementation of the Commercial Advertisement Loudness
Mitigation Act (CALM Act),\92\ the Twenty-First Century Communications
[[Page 65931]]
and Video Accessibility Act of 2010 (CVAA),\93\ as well as the
Satellite Television Extension and Localism Act (STELA) Reauthorization
Act of 2014 (STELAR).\94\
---------------------------------------------------------------------------
\84\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10276-77,
paragraphs 19-20.
\85\ Id., 30 FCC Rcd at 10277, paragraph 20.
\86\ GAO ``Federal Communications Commission Regulatory Fee
Process Needs to be Updated,'' GAO-12-686 (August 2012) at 12,
available at https://www.gao.gov/products/GAO-12-686.
\87\ See FY 2015 Report and Order, 30 FCC Rcd at 5367-68,
paragraph 31.
\88\ 47 U.S.C. 548; 47 CFR 76.1000-1004.
\89\ 47 U.S.C. 325(b)(1), (3)(C)(ii); 47 CFR 76.65(b).
\90\ 47 U.S.C. 536; 47 CFR 76.1300-1302.
\91\ 47 U.S.C. 325(b)(3)(C)(iii); 47 CFR 76.65(a)-(b).
\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 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; Video Description:
Implementation of the Twenty-First Century Communications and Video
Accessibility Act of 2010, Notice of Proposed Rulemaking, 31 FCC Rcd
2463 (2016).
\94\ The STELA Reauthorization Act of 2014 (STELAR), Public Law
113-200, 128 Stat. 2059 (2014). STELAR was enacted on Dec. 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, 30 FCC Rcd 15293 (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).
---------------------------------------------------------------------------
29. In the FY 2016 NPRM, we observed that DBS, along with other
MVPDs, continues to receive increased oversight and regulation as a
result of the work of Media Bureau FTEs. For example, we recently
adopted a Report and Order requiring cable television operators, DBS
providers, and certain other licensees to post their public file
documents to the FCC-hosted online database.\95\ In addition, we
recently released a Notice of Proposed Rulemaking pertaining to set-top
boxes of cable television and DBS operators.\96\ These recent
proceedings involving DBS further demonstrate that DBS providers impose
regulatory costs and receive benefit from the activities of the Media
Bureau FTEs that affect all MVPDs. In the FY 2016 NPRM, we sought
comment on a higher regulatory fee rate of 27 cents per subscriber per
year for FY 2016--a 24 cent per subscriber baseline with a proportional
adjustment of three cents per subscriber associated with facilities
reduction costs.\97\ This fee would be slightly higher than two cents
per month per subscriber and would remain significantly below the cable
television/IPTV rate of $1.00 per year.\98\
---------------------------------------------------------------------------
\95\ Expansion of Online Public File Obligations to Cable and
Satellite TV Operators and Broadcast and Satellite Radio Licensees,
Report and Order, 31 FCC Rcd 526 (2016).
\96\ Expanding Consumers' Video Navigation Choices, Commercial
Availability of Navigation Devices, Notice of Proposed Rulemaking
and Memorandum Opinion and Order, 31 FCC Rcd 1544 (2016). See also
Promoting the Availability of Diverse and Independent Sources of
Video Programming, Notice of Inquiry, 31 FCC Rcd 1610 (2016).
\97\ For FY 2015, we adopted a rate for DBS of 12 cents per
subscriber per year, or one cent per month per subscriber. By way of
comparison, the cable television and IPTV rate adopted for FY 2015
was 96 cents per subscriber per year.
\98\ The agency is not required to calculate its costs with
``scientific precision.'' Central & Southern Motor Freight Tariff
Ass'n v. United States, 777 F.2d 722, 736 (D.C. Cir. 1985).
Reasonable approximations will suffice. Id.; Mississippi Power &
Light, 601 F.2d at 232; National Cable Television Ass'n v. FCC, 554
F.2d 1094, 1105 (D.C. Cir. 1976); 36 Comp. Gen. 75 (1956).
---------------------------------------------------------------------------
30. Commenters representing the cable television industry agree
that the Media Bureau FTEs increasingly devote time to issues involving
the entire MVPD industry, and that DBS, cable television, and IPTV all
receive oversight and regulation as a result of the work of the Media
Bureau FTEs on MVPD issues.\99\ These commenters argue that regulatory
fee parity for all MVPDs paying into the cable television/IPTV fee
category is therefore justified because there is a ``relatively small
difference from a regulatory perspective'' between DBS and cable
television/IPTV.\100\ ACA observes \101\ that AT&T, the nation's
largest MVPD,\102\ operates its U-verse IPTV service and its DirecTV
DBS service,\103\ yet will be assessed lower regulatory fees for its
approximately 20 million DirecTV subscribers than it will pay for its
approximately six million IPTV subscribers, although these services use
comparable Media Bureau FTE resources.\104\
---------------------------------------------------------------------------
\99\ ACA Comments at 3-11; NCTA Reply Comments at 3-7.
\100\ ACA Comments at 3-7; NCTA Reply Comments at 7.
\101\ ACA Comments at 9.
\102\ When the Commission sought comment on including IPTV into
the cable television fee category, AT&T, an IPTV service provider,
advocated a ``broader MVPD category . . . because it could encompass
both cable service and non-cable service video offerings, like IPTV,
and allow for evolution in the MVPD market.'' AT&T Comments (MD
Docket No. 13-140) at 5.
\103\ Applications of AT&T Inc. and DirecTV; For Consent to
Assign or Transfer Control of Licenses and Authorizations,
Memorandum Opinion and Order, 30 FCC Rcd 9131 (2016).
\104\ See, e.g., Implementation of Section 103 of the STELA
Reauthorization Act of 2014, MB Docket Nos. 15-216 and 10-71, Ex
Parte Letter to Marlene Dortch, Secretary, FCC, from Sean A. Lev,
Counsel to AT&T Services, Inc. (filed March 16, 2016). Moreover,
recent press reports indicate that AT&T's U-verse subscribers are
declining, while their DirecTV subscribers are increasing, which
will lower its Media Bureau regulatory fee burden. See https://variety.com/2016/biz/news/directv-att-tv-shrinks-q2-2016-1201819654/
; https://www.hollywoodreporter.com/news/at-t-loses-pay-tv-913277.
---------------------------------------------------------------------------
31. ACA agrees that the previously adopted phase-in period was the
correct approach; however, DBS providers have already had the benefit
of an adequate phase-in and should now be brought quickly up to parity
with cable television and IPTV.\105\ Thus, ACA and NCTA argue, the
Commission should either assess all payors in the cable television/IPTV
fee category the same level of fees, or, at a minimum, assess DBS fee
payors a higher fee and commit to raising that by 2017 to the fees
assessed on cable television operators and IPTV providers.\106\
---------------------------------------------------------------------------
\105\ ACA Comments at 9-11 & Reply Comments at 15.
\106\ ACA Comments at 9-11; NCTA Reply Comments at 9.
---------------------------------------------------------------------------
32. The two DBS providers, AT&T and DISH, however, disagree with
our proposal and argue that there is no justification for increasing
the fee to 27 cents per subscriber per year for FY 2016.\107\ AT&T
contends that we have failed to demonstrate any specific reason for
this fee increase for DBS providers.\108\ DISH argues that the increase
of an additional 15 cents per subscriber per year will subject DBS
providers to ``rate shock'' and that we have abandoned our ``phased
approach.'' \109\ We disagree that this rate increase, still
substantially below the cable television/IPTV rate, will cause ``rate
shock.'' As NTCA observes, it is unpersuasive that rate shock will
occur under ``a 27 cents annual fee for services that cost on average
about $100 per month.'' \110\
---------------------------------------------------------------------------
\107\ AT&T Comments at 1-3; DISH Comments at 4-6 & Reply
Comments at 2-3.
\108\ AT&T Comments at 1-3.
\109\ DISH Comments at 7-8.
\110\ NTCA Reply Comments at 2-3 (footnote omitted); ACA Reply
Comments at 2 (``claims . . . that the Commission's proposed
increase will cause `rate shock' . . . should not be given any
credence.''). The two DBS providers, AT&T and DISH, are the largest
and fourth largest MVPDs in the nation, and multi-billion dollar
corporations. Id. at 14.
---------------------------------------------------------------------------
33. The proposed fee of 27 cents per subscriber per year continues
to follow our decision to assess fees for DBS in the cable television/
IPTV category. In particular, the increase we adopt today is not based
on an incremental increase in Media Bureau FTEs working on MVPD
issues,\111\ but is supported by data and analysis and wholly
consistent
[[Page 65932]]
with the approach used in FY 2015.\112\ We reiterate that the DBS and
cable television/IPTV oversight and regulatory work of Media Bureau
FTEs is similar.\113\ As such, we remain committed as a goal to
regulatory fee parity for all MVPDs paying into the cable television/
IPTV fee category.\114\ We find it appropriate to adopt the rate
proposed in the FY 2016 NPRM.\115\ For reasons similar to those
discussed in the FY 2015 NPRM,\116\ and based on our analysis of the
resources dedicated to this subcategory, including the resources
dedicated to the pending portfolio of MVPD proceedings, we revise the
DBS fee rate. Specifically, in this FY 2016 regulatory fee proceeding,
we adopt a DBS fee rate of 27 cents per subscriber per year for FY
2016, as set forth in the fee schedule. This fee includes a 24 cent per
subscriber baseline with a proportional adjustment of three cents per
subscriber associated with facilities reduction costs.
---------------------------------------------------------------------------
\111\ This appears to be the DBS position. See AT&T Comments at
2; DISH Comments at 6 & Reply Comments at 3.
\112\ See FY 2015 Report and Order, 30 FCC Rcd at 10277,
paragraph 20 (finding that the initial rate of 12 cents per
subscriber per year is a ``sensible fee supported by data and
analysis.'')
\113\ FY 2016 NPRM, 81 FRt 35680, at 35683, paragraphs 13-14.;
FY 2015 NPRM, 30 FCC Rcd at 5369, paragraph 33.
\114\ See FY 2015 Report and Order, 30 FCC Rcd at 10277,
paragraph 20 (``In the FY 2016 regulatory fee proceeding, we will
update this rate for future years, based on relevant information, as
necessary for ensuring an appropriate level of regulatory parity and
considering the resources dedicated to this new regulatory fee
subcategory.'').
\115\ FY 2016 NPRM, 81 FR 35680, at 35683 at paragraph 14.
\116\ FY 2015 NPRM, 30 FCC Rcd at 5367-5373, paragraphs 31-41.
---------------------------------------------------------------------------
6. Broadcasters' Fees
a. AM and FM Broadcasters Serving the Smallest Two Market Levels
(<=25,000 and 25,001-75,000)
34. In the FY 2016 NPRM, we 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.\117\ Similarly, we proposed to standardize
the incremental increase in fees as the population served
increases,\118\ and to more consistently assess fees based on the type
and class of service.\119\ We also proposed to adjust the television
broadcasters table so that Top 10 market stations should pay about
twice what stations in markets 26-50 pay.\120\
---------------------------------------------------------------------------
\117\ FY 2016 NPRM, 81 FR 35680, at 35684, paragraph 17. We also
sought comment on this issue in the Further Notice of Proposed
Rulemaking attached to the FY 2015 Report and Order. See FY 2015
Report and Order, 30 FCC Rcd at 10280, paragraph 28.
\118\ 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.
\119\ 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.
\120\ FY 2016 NPRM, 81 FR 35680, at 35685, paragraph 19. We also
sought comment on this issue in the Further Notice of Proposed
Rulemaking attached to the FY 2015 Report and Order. See FY 2015
Report and Order, 30 FCC Rcd at 10280-81, paragraph 29.
---------------------------------------------------------------------------
35. Several commenters contend that our proposal is too burdensome
for small independent radio and television stations.\121\ One commenter
contends that the addition of ``greater than 6 million'' is a welcome
step for radio broadcasters, but that it does not go far enough because
AM stations bill far less advertising revenue than FM stations.\122\
Another commenter, representing a group of recording artists, observes
that ``the [radio] stations that support us the most are the smaller
independents not affiliated with the major networks. These smaller
stations struggle on a day-to-day basis.'' \123\ Several commenters
suggest that we use a combination of revenue and a set fee instead of a
market-based fee, to assess regulatory fees for radio and television
broadcasters.\124\
---------------------------------------------------------------------------
\121\ Marquee Broadcasting Comments at 1 (``[The proposal]
places a disproportional burden on small, independent broadcast
[television] stations, the very group the FCC should hope to
encourage in an industry of giants.''); Koor Communications Reply
Comments at 1 (``The present system of calculating regulatory fees
is very lopsided and unfair especially to small market AM
Broadcasters.''); P & M Radio Reply Comments at 1 (``I, along with
many owner-operators of independent AM stations, have been
struggling in the past decade just to stay on the air.''); Blackbelt
Broadcasting Comments at 1 (``the proposed fee increase (and
structure) [should be] revaluated [to] consider the burden this will
put on many small rural [FM] broadcasters.''); Fitzgerald Comments
at 2 (``Stations with populations under 25,000 served are for the
most part, very small `Mom and Pop' style stations. These [proposed]
massive increases will greatly harm these . . . [radio] stations
which generate very small amounts of revenue.''); Faxon Reply
Comments at 1 (``The proposed regulatory fees for 2016 do not make
sense and place an extreme burden on small market radio
stations.'').
\122\ Bittner Comments at 1.
\123\ Brigham Reply Comments at 1.
\124\ Bittner Broadcasting Comments at 1-3; Marquee Broadcasting
Comments at 1; Brigham Reply Comments at 1; Koor Communications
Reply Comments at 1; P & M Radio Reply Comments at 1; Faxon Reply
Comments at 1.
---------------------------------------------------------------------------
36. We do not require broadcasters to report their revenues. Thus,
the revenue-based proposal is not practicable at this time. We agree,
however, that the proposed rates should be revised downward for the
smaller AM and FM radio broadcast stations. Extending some relief to
these small radio broadcasters may facilitate their continued ability
to stay in business and serve their small and rural communities.
Therefore, after reviewing the record, including the comments filed by
the industry describing the economic hardship faced by many small rural
independent radio stations, we are adopting a revised version of the
proposed table in the FY 2016 NPRM and reducing the regulatory fees in
the two lowest population tiers for AM and FM broadcasters from the
amounts proposed.\125\
---------------------------------------------------------------------------
\125\ PMCM TV suggests that we assess a lower fee for VHF TV
stations than UHF stations. PMCM TV Comments at 3-4. We decline to
adopt this proposal here, but intend to seek comment on it in the FY
2017 Notice of Proposed Rulemaking.
Table 1--FY 2016 AM and FM 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................................................ $990 $715 $620 $685 $1,075 $1,250
25,001-75,000........................................... 1,475 1,075 925 1,025 1,625 1,850
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
[[Page 65933]]
>6,000,000.............................................. 13,750 9,950 8,625 9,500 15,000 17,175
--------------------------------------------------------------------------------------------------------------------------------------------------------
b. Puerto Rico Broadcasters Association Proposal
37. The PRBA and Arso comment on the issues set forth in the PRBA
December 10, 2014 letter (PRBA Letter),\126\ seeking regulatory fee
relief for the radio broadcasters in the Commonwealth of Puerto Rico
due to economic hardship, unique geography, and declining
population.\127\ In the PRBA Letter, PRBA requested that the Commission
use more recent figures to determine the radio station population count
for radio stations in Puerto Rico.\128\ PRBA stated that due to the
economic hardship in the territory, the population has decreased in the
past nine years by almost six percent because of migration to the
mainland United States and a declining birthrate.\129\ Finally, PRBA
contended that the radio listening market is limited because it is
restricted to listeners within the boundaries of the island.\130\
---------------------------------------------------------------------------
\126\ PRBA Comments at 1-5; Arso Comments at 1-7.
\127\ We previously sought comment on: (i) Moving the Puerto
Rico market stations to a different rate (or a lower population
stratum) because of the downward trend in the population and other
factors; (ii) creating a separate fee category for the Puerto Rico
market at a lower rate; or (iii) adopting a special provision in our
rules for economically depressed geographic areas to seek a ``fast
track'' waiver of regulatory fees. See FY 2015 NPRM, 30 FCC Rcd at
5360-61, paragraphs 15-18. Arso observes that the ``fast track''
proposal would require a rulemaking procedure, which would be time-
consuming, and the Puerto Rican stations need immediate relief. Arso
Comments at 4.
\128\ PRBA Letter at 2-4. PRBA asked the Commission to examine
population data every five years instead of every 10 years to
increase the accuracy of the population counts in Puerto Rico. The
Commission explained that radio station population counts are
updated every ten years to reflect nationwide changes in the
population using the ``block level census data'' from the U.S.
Census, therefore we could not adopt PRBA's suggestion because the
``block level census data'' is only available from the U.S. Census
Bureau every 10 years. Further, even if such figures were available
every five years, they would be unlikely to provide a basis for fee
relief for radio stations in Puerto Rico because fees on AM and FM
radio stations are not assessed at granular levels. See FY 2015
NPRM, 30 FCC Rcd at 5360-61, paragraphs 15-18.
\129\ PRBA Letter at 3.
\130\ Id. at 5.
---------------------------------------------------------------------------
38. PRBA and Arso contend that the economic situation has worsened
since the PRBA Letter was filed, and that it is crucial that the
Commission provide relief from regulatory fee obligations for Puerto
Rican broadcasters.\131\ PRBA contends that requiring each radio and
television station to submit a waiver request would negate any benefit
of the Commission's efforts.\132\ Arso observes that it would be
burdensome for companies to pay the regulatory fee when requesting a
fee reduction.\133\ Instead, PRBA contends, the Commission should
either move the Puerto Rican stations to a lower population stratum
\134\ or create a separate fee category for the Puerto Rican
market.\135\ PRBA urges the Commission to adopt the second proposal--a
separate fee category for the entire Puerto Rican market--at a rate 30
percent lower than the normal rate for each station.\136\
---------------------------------------------------------------------------
\131\ PRBA Comments at 2; Arso Comments at 3.
\132\ PRBA Comments at 3. Arso Comments at
\133\ Arso Comments at 3-4.
\134\ PRBA suggests moving two levels down to account for
population loss and economic difficulties. PRBA Comments at 4.
\135\ PRBA Comments at 3-4. Arso Comments at
\136\ PRBA Comments at 4. Arso Comments at
---------------------------------------------------------------------------
39. We decline to adopt the PRBA proposal at this time. Fee relief
is ordinarily processed through a waiver request or payment
deferral.\137\ While we recognize that the economic situation in Puerto
Rico is difficult in general, without the specific information needed
to justify a waiver request or payment deferral we would not know the
particular circumstances of the regulatee or licensee to support a
request for relief. Information concerning how to request fee relief
can be found on our Web site, e.g., https://www.fcc.gov/document/fy-2015-waiver-regulatory-fees-fact-sheet. As discussed above, we are
adopting a revised version of the proposed table and thus reducing the
regulatory fees in the two lowest population tiers from the amount
proposed for radio broadcasters, which should provide some amount of
fee relief to eleven of the PRBA stations.\138\
---------------------------------------------------------------------------
\137\ Fees may be waived, reduced or deferred in specific
instances, on a case-by-case basis, where good cause is shown and
where waiver, reduction, or deferral of the fee would promote the
public interest. 47 U.S.C. 159(d); 47 CFR 1.1166. Fee relief may be
granted based on a ``sufficient showing of financial hardship.'' See
Implementation of Section 9 of the Communications Act, Assessment
and Collection of Regulatory Fees for the 1994 Fiscal Year,
Memorandum Opinion and Order, 10 FCC Rcd 12759, 12761-62, paragraph
13 (1995). In such matters, however, ``[m]ere allegations or
documentation of financial loss, standing alone,'' do not suffice
and ``it [is] incumbent upon each regulatee to fully document its
financial position and show that it lacks sufficient funds to pay
the regulatory fee and to maintain its service to the public.'' Id.
\138\ The remaining radio stations in Puerto Rico are situated
in the top three fee category tiers. In addition to providing relief
to eleven Puerto Rican radio stations, a reduction in the fees of
the two lowest fee categories also provides relief to many small
non-Puerto Rican stations, including several dozen radio stations in
the U.S. territories in the Pacific and in the Caribbean (e.g.,
Guam, American Samoa, Saipan, and U.S. Virgin Islands).
---------------------------------------------------------------------------
c. Broadcast Television Incentive Auction--Reminder To Pay FY 2016 and
FY 2017 Regulatory Fees
40. The Commission's Broadcast Television Incentive Auction
(Incentive Auction) is underway, and all broadcast television licensees
are reminded that they continue to be responsible for payment of FY
2016 regulatory fees if they held a license or construction permit as
of October 1, 2015, as well as for payment of FY 2017 regulatory fees
if they continue to hold their license or construction permit as of
October 1, 2016. Licensees must pay the required regulatory fees to
avoid any delay of payments resulting from the Incentive Auction.\139\
Finally, regulatees are reminded that non-payment of regulatory fees,
if required, will place them in red light status and prevent them from
conducting business with the Commission.
---------------------------------------------------------------------------
\139\ Application Procedures for Broadcast Incentive Auction
Scheduled to Begin on March 29, 2016; Technical Formulas for
Competitive Bidding, Public Notice, 30 FCC Rcd 11034, 11041-42,
paragraphs 12-14 (WTB 2015); see also Expanding the Economic and
Innovation Opportunities of Spectrum Though Incentive Auctions,
Report and Order, 29 FCC Rcd at 6567, 6785, n.1512 (2014).
---------------------------------------------------------------------------
V. Procedural Matters
A. Payment of Regulatory Fees
1. Payments by Check Will Not Be Accepted for Payment of Annual
Regulatory Fees
41. Pursuant to an Office of Management and Budget (OMB)
directive,\140\ the Commission is moving towards a paperless
environment, extending to disbursement and collection of select federal
government
[[Page 65934]]
payments and receipts.\141\ The initiative to reduce paper and curtail
check payments for regulatory fees is expected to produce cost savings,
reduce errors, and improve efficiencies across government. In FY 2015,
we 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.\142\ The 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 in order to associate the wire payment with the
correct regulatory fee information.\143\
---------------------------------------------------------------------------
\140\ Office of Management and Budget (OMB) Memorandum M-10-06,
Open Government Directive, Dec. 8, 2009; see also https://www.whitehouse.gov/the-press-office/2011/06/13/executive-order-13576-delivering-efficient-effective-and-accountable-gov.
\141\ See U.S. Department of the Treasury, Open Government Plan
2.1, Sept. 2012.
\142\ FY 2015 Report and Order, 30 FCC Rcd at 10282-83,
paragraph 35.
\143\ As we explained in 2015, payors should note 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
42. 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
limited to $24,999.99.\144\ 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.
---------------------------------------------------------------------------
\144\ 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.
---------------------------------------------------------------------------
3. Payment Methods
43. During the fee season for collecting FY 2016 regulatory fees,
regulatees can pay their fees by credit card through Pay.gov,\145\ ACH,
debit card,\146\ or by wire transfer. Additional payment instructions
are posted at https://transition.fcc.gov/fees/regfees.html. The
receiving bank for all wire payments is the U.S. Treasury, New York,
New York. When making a wire transfer, regulatees must fax a copy of
their Fee Filer generated Form 159-E to the Federal Communications
Commission at (202) 418-2843 at least one hour before initiating the
wire transfer (but on the same business day) so as not to delay
crediting their account. Regulatees should discuss arrangements
(including bank closing schedules) with their bankers several days
before they plan to make the wire transfer to allow sufficient time for
the transfer to be initiated and completed before the deadline.
Complete instructions for making wire payments are posted at https://ransition.fcc.gov/fees/wiretran.html.
---------------------------------------------------------------------------
\145\ In accordance with U.S. Treasury Financial Manual
Announcement No. A-2014-04 (July 2014), the amount that may be
charged on a credit card for transactions with federal agencies has
been reduced to $24,999.99.
\146\ In accordance with U.S. Treasury Financial Manual
Announcement No. A-2012-02, the maximum dollar-value limit for debit
card transactions is eliminated. Only Visa and MasterCard branded
debit cards are accepted by Pay.gov.
---------------------------------------------------------------------------
4. De Minimis Regulatory Fees
44. 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 2015 regulatory fees. The de minimis
threshold applies only to filers of annual regulatory fees (not
regulatory fees paid through multi-year filings), and is not a
permanent exemption. Regulatees will need to reevaluate their total fee
liability each fiscal year to determine whether they meet the de
minimis exemption.
5. Standard Fee Calculations and Payment Dates
45. 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 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.\147\ For RespOrgs that manage
Toll Free Numbers (TFN), regulatory fees should be paid on all working,
assigned, and reserved toll free numbers, including those toll free
numbers that are in transit status, or any other status as defined in
section 52.103 of the Commission's rules. The unit count should be
based on toll free numbers managed by RespOrgs on or about December 31,
2015.
---------------------------------------------------------------------------
\147\ Audio bridging services are toll teleconferencing
services.
---------------------------------------------------------------------------
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.
[[Page 65935]]
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.\148\ 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.
---------------------------------------------------------------------------
\148\ 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.
---------------------------------------------------------------------------
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 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.\149\ 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.\150\
---------------------------------------------------------------------------
\149\ We encourage terrestrial and satellite service providers
to seek guidance from the International Bureau's Policy Division to
verify their IBC reporting processes to ensure that their
calculation methods comply with our rules.
\150\ We remind facilities-based common carriers to review their
reporting processes to ensure that they accurately calculate and
report IBCs.
---------------------------------------------------------------------------
B. Commercial Mobile Radio Service (CMRS) Cellular and Mobile Services
Assessments
46. 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'').\151\ 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).
---------------------------------------------------------------------------
\151\ See FY 2005 Report and Order, 20 FCC Rcd at 12264,
paragraphs 38-44.
---------------------------------------------------------------------------
47. 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.\152\ 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.
---------------------------------------------------------------------------
\152\ 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.
---------------------------------------------------------------------------
48. 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.
C. Enforcement
49. To be considered timely, regulatory fee payments must be made
electronically by the payment due date for regulatory fees. Section
9(c) of the Act requires us to impose a late payment penalty of 25
percent of the unpaid amount to be assessed on the first day following
the deadline for filing these fees.\153\ Failure to pay regulatory fees
and/or any late penalty will subject regulatees to sanctions, including
those set forth in section 1.1910 of the Commission's rules,\154\ which
generally requires the Commission to withhold action on ``applications,
including on a petition for reconsideration or any application for
review of a fee determination, or requests for authorization by any
entity found to be delinquent in its debt to the Commission'' and in
the DCIA.\155\ We
[[Page 65936]]
also assess administrative processing charges on delinquent debts to
recover additional costs incurred in processing and handling the debt
pursuant to the DCIA and section 1.1940(d) of the Commission's
rules.\156\ These administrative processing charges will be assessed on
any delinquent regulatory fee, in addition to the 25 percent late
charge penalty. In the case of partial payments (underpayments) of
regulatory fees, the payor will be given credit for the amount paid,
but if it is later determined that the fee paid is incorrect or not
timely paid, then the 25 percent late charge penalty (and other charges
and/or sanctions, as appropriate) will be assessed on the portion that
is not paid in a timely manner.
---------------------------------------------------------------------------
\153\ 47 U.S.C. 159(c).
\154\ See 47 CFR 1.1910.
\155\ Delinquent debt owed to the Commission triggers the ``red
light rule,'' which places a hold on the processing of pending
applications, fee offsets, and pending disbursement payments. 47 CFR
1.1910, 1.1911, 1.1912. In 2004, the Commission adopted rules
implementing the requirements of the DCIA. See Amendment of Parts 0
and 1 of the Commission's Rules, MD Docket No. 02-339, Report and
Order, 19 FCC Rcd 6540 (2004); 47 CFR part 1, subpart O, Collection
of Claims Owed the United States.
\156\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------
50. Pursuant to the ``red light rule,'' we will withhold action on
any applications or other requests for benefits filed by anyone who is
delinquent in any non-tax debts owed to the Commission (including
regulatory fees) and will ultimately dismiss those applications or
other requests if payment of the delinquent debt or other satisfactory
arrangement for payment is not made.\157\ Failure to pay regulatory
fees can also result in the initiation of a proceeding to revoke any
and all authorizations held by the entity responsible for paying the
delinquent fee(s).\158\ Pursuant to a pilot program, we have initiated
procedures to transfer debt to the Centralized Receivables Service at
the U.S. Treasury, as described below.
---------------------------------------------------------------------------
\157\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
\158\ 47 U.S.C. 159.
---------------------------------------------------------------------------
D. Transfers of Unpaid Debt to Centralized Receivables Service (CRS),
U.S. Treasury
51. Under section 9 of the Act, Commission rules, and federal debt
collection laws, a licensee's regulatory fee is due on the first day of
the fiscal year and payable at a date established in the Commission's
annual regulatory fee Report and Order. In October 2015, the
Commission, under revised procedures, began transferring unpaid
regulatory fee receivables directly to the CRS at the U.S. Treasury
rather than trying to collect the debt itself and then transferring the
remaining unpaid debts to Treasury. Under revised procedures, the
Commission can transfer delinquent debt to Treasury for further
collection action within 120 days after the date of delinquency.\159\
However, regulatees will not likely see any substantial change in the
current procedures of how past due debts are to be paid, except that
the debts will be handled by CRS (U.S. Treasury) rather than by the
Commission.
---------------------------------------------------------------------------
\159\ See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR 1.1917.
---------------------------------------------------------------------------
E. Effective Date
52. Providing a 30 day period after Federal Register publication
before this Report and Order becomes effective as required by 5 U.S.C.
553(d) will not allow sufficient time to collect the FY 2016 fees
before FY 2016 ends on September 30, 2016. For this reason, pursuant to
5 U.S.C. 553(d)(3), we find there is good cause to waive the
requirements of section 553(d), and this Report and Order will become
effective upon publication in the Federal Register. Because payments of
the regulatory fees will not actually be due until late September,
persons affected by this Report and Order will still have a reasonable
period in which to make their payments and thereby comply with the
rules established herein.
VI. Additional Tables
Table 2--List of Commenters--Initial Comments
------------------------------------------------------------------------
Commenter Abbreviation
------------------------------------------------------------------------
American Cable Association....... ACA.
Arso Radio Corporation........... Arso.
AT&T Services, Inc............... AT&T.
Robert Bittner, Bob Bittner Bittner Broadcasting.
Broadcasting Co..
CTIA............................. CTIA.
CenturyLink, Inc................. CenturyLink.
Damon Collins, Blackbelt Blackbelt Broadcasting.
Broadcasting, Inc..
DISH Network, L.L.C.............. DISH.
EchoStar Satellite Operating EchoStar.
Corporation and Hughes Network
Systems, LLC.
Kevin M. Fitzgerald.............. Fitzgerald.
Frontier Communications Frontier.
Corporation.
Patricia Lane, Marquee Marquee Broadcasting.
Broadcasting.
Level 3 Communications, LLC...... Level 3.
NTCA--The Rural Broadband NTCA.
Association.
Puerto Rico Broadcasters PRBA.
Association.
Somos, Inc....................... Somos.
Submarine Cable Coalition........ Submarine Cable Coalition.
------------------------------------------------------------------------
List of Commenters--Reply Comments
------------------------------------------------------------------------
American Cable Association....... ACA.
Adrian Brigham................... Brigham.
CTIA............................. CTIA.
DISH Network, L.L.C.............. DISH.
Shawn Faxon...................... Faxon.
Robert L. Vinikoor, Koor Koor Communications.
Communications, Inc..
National Cable & NCTA.
Telecommunications Association.
NTCA--The Rural Broadband NTCA.
Association.
Phillip G. Drumheller, President, P & M Radio.
P & M Radio, LLC..
PMCM TV, LLC..................... PMCM TV.
------------------------------------------------------------------------
[[Page 65937]]
Table 3--Calculation of FY 2016 Revenue Requirements and Pro-Rata Fees
[Regulatory fees for the first seven fee 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 Pro-rated FY Rounded FY Expected FY
Fee Category FY 2016 Years revenue 2016 revenue Computed FY 2016 reg. 2016
payment units estimate requirement 2016 reg. fee fee revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)................................. 2,500 10 546,000 625,000 25 25 625,000
PLMRS (Shared use) (includes Rural Radio Service (47 31,100 10 3,100,000 3,110,000 10 10 3,110,000
CFR part 22).........................................
Microwave............................................. 12,500 10 2,520,000 3,125,000 25 25 3,125,000
Marine (Ship)......................................... 6,900 10 945,000 1,035,000 15 15 1,035,000
Aviation (Aircraft)................................... 4,700 10 420,000 470,000 10 10 470,000
Marine (Coast)........................................ 480 10 171,500 192,000 40 40 192,000
Aviation (Ground)..................................... 1,100 10 180,000 220,000 20 20 220,000
AM Class A \4\........................................ 66 1 281,125 313,996 4,758 4,750 313,500
AM Class B \4\........................................ 1,535 1 3,499,125 3,888,014 2,533 2,525 3,875,875
AM Class C \4\........................................ 889 1 1,244,600 1,407,418 1,583 1,575 1,400,175
AM Class D \4\........................................ 1,492 1 4,103,000 4,601,097 3,084 3,075 4,587,900
FM Classes A, B1 & C3 \4\............................. 3,122 1 8,613,000 9,649,637 3,091 3,100 9,678,200
FM Classes B, C, C0, C1 & C2 \4\...................... 3,139 1 10,607,625 11,820,313 3,766 3,775 11,849,725
AM Construction Permits \1\........................... 15 1 17,110 9,300 620 620 9,300
FM Construction Permits \1\........................... 179 1 136,500 192,425 1,075 1,075 192,425
Satellite TV.......................................... 128 1 200,025 224,000 1,750 1,750 224,000
Digital TV Markets 1-10............................... 139 1 6,274,550 8,433,889 60,675 60,675 8,433,825
Digital TV Markets 11-25.............................. 139 1 5,918,400 6,348,889 45,675 45,675 6,348,825
Digital TV Markets 26-50.............................. 181 1 5,000,125 5,523,889 30,519 30,525 5,525,025
Digital TV Markets 51-100............................. 283 1 4,605,825 4,304,746 15,211 15,200 4,301,600
Digital TV Remaining Markets.......................... 365 1 1,838,150 1,825,000 5,000 5,000 1,825,000
Digital TV Construction Permits \1\................... 3 1 9,700 15,000 5,000 5,000 15,000
LPTV/Translators/Boosters/Class A TV.................. 3,924 1 1,601,600 1,785,420 455 455 1,785,420
CARS Stations......................................... 285 1 198,000 220,875 775 775 220,875
Cable TV Systems, including IPTV...................... 64,200,000 1 61,920,000 64,200,000 1.000 1.00 64,200,000
Direct Broadcast Satellite (DBS)...................... 34,000,000 1 4,080,000 9,180,000 .2700 .27 9,180,000
Interstate Telecommunication Service Providers........ 38,200,000,000 1 128,428,000 141,722,000 0.003710 0.00371 142,722,000
Toll Free Numbers..................................... 36,500,000 1 4,380,000 4,745,000 0.1300 0.13 4,745,000
CMRS Mobile Services (Cellular/Public Mobile)......... 366,000,000 1 60,180,000 73,200,000 0.1954 0.20 73,200,000
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 Terrestrial (Common) 31,900,000 1 657,000 776,617 .0243 .02 638,000
& Satellite (Common & Non-Common)....................
Submarine Cable Providers (see chart in Appendix B) 41.19 1 4,652,576 5,486,427 133,205 133,200 5,486,242
\3\..................................................
Earth Stations........................................ 3,400 1 1,023,000 1,173,000 345 345 1,173,000
Space Stations (Geostationary)........................ 95 1 11,438,400 13,155,125 138,475 138,475 13,155,125
Space Stations (Non-Geostationary).................... 6 1 792,750 911,700 151,950 151,950 911,700
****** Total Estimated Revenue to be Collected.... ............... ........ 340,593,961 385,006,402 .............. ........... 384,890,362
****** Total Revenue Requirement.................. ............... ........ 339,844,000 384,012,497 .............. ........... 384,012,497
Difference.................................... ............... ........ 749,961 993,905 .............. ........... 877,865
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table 3
\1\ The AM and FM 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.
\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, paragraph 6 (2004).
\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 stations are listed on a grid located at the end of Table 4.
[[Page 65938]]
Table 4--FY 2016 Schedule of Regulatory Fees
[Regulatory fees for the first eight fee 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 Distribution Service (per call sign) 725
(47 CFR, part 101)..................................
AM Radio Construction Permits........................ 620
FM Radio Construction Permits........................ 1,075
Digital TV (47 CFR part 73) VHF and UHF Commercial... .................
Markets 1-10..................................... 60,675
Markets 11-25.................................... 45,675
Markets 26-50.................................... 30,525
Markets 51-100................................... 15,200
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 .00371
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 138,475
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100)................................................
Space Stations (per operational system in non- 151,950
geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits-Terrestrial/Satellites .02
(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................................................ $990 $715 $620 $685 $1,075 $1,250
25,001-75,000........................................... 1,475 1,075 925 1,025 1,625 1,850
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
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.............................................. $8,325
2.5 Gbps or greater, but less than 5 Gbps............... 16,650
5 Gbps or greater, but less than 10 Gbps................ 33,300
10 Gbps or greater, but less than 20 Gbps............... 66,600
20 Gbps or greater...................................... 133,200
------------------------------------------------------------------------
[[Page 65939]]
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), Bureau (WTB) projections of new
Aviation (Aircraft & applications and renewals taking into
Ground), Domestic Public consideration existing Commission
Fixed. 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 Based on CDBS data, adjusted for
VHF/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 Based on CDBS data, adjusted for
Boosters, Class A Television. exemptions, and actual FY 2015 payment
units.
BRS (formerly MDS/MMDS)...... Based on WTB reports and actual FY 2015
LMDS......................... payment units.
Based on WTB reports and actual FY 2015
payment units.
Cable Television Relay Based on data from Media Bureau's COALS
Service (CARS) Stations. database and actual FY 2015 payment
units.
Cable Television System Based on publicly available data sources
Subscribers, Including IPTV for estimated subscriber counts and
Subscribers. actual FY 2015 payment units.
Interstate Telecommunication Based on FCC Form 499-Q data for the four
Service Providers. 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 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
[[Page 65940]]
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 fee 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). 30
Microwave (per license) (47 CFR part 101)............ 20
Marine (Ship) (per station) (47 CFR part 80)......... 15
Marine (Coast) (per license) (47 CFR part 80)........ 35
Rural Radio (47 CFR part 22) (previously listed under 10
the Land Mobile category)...........................
PLMRS (Shared Use) (per license) (47 CFR part 90).... 10
Aviation (Aircraft) (per station) (47 CFR part 87)... 10
Aviation (Ground) (per license) (47 CFR part 87)..... 20
CMRS Mobile/Cellular Services (per unit) (47 CFR .17
parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90)......................................
Broadband Radio Service (formerly MMDS/MDS) (per 635
license) (47 CFR part 27)...........................
Local Multipoint Distribution Service (per call sign) 635
(47 CFR, part 101)..................................
AM Radio Construction Permits........................ 590
FM Radio Construction Permits........................ 750
Digital TV (47 CFR part 73) VHF and UHF Commercial:
Markets 1-10..................................... 46,825
Markets 11-25.................................... 43,200
Markets 26-50.................................... 27,625
Markets 51-100................................... 16,275
Remaining Markets................................ 4,850
Construction Permits............................. 4,850
Satellite Television Stations (All Markets).......... 1,575
Low Power TV, Class A TV, TV/FM Translators & 440
Boosters (47 CFR part 74)...........................
CARS (47 CFR part 78)................................ 660
Cable Television Systems (per subscriber) (47 CFR .96
part 76), Including IPTV............................
Direct Broadcast Service (DBS) (per subscriber) (as .12
defined by section 602(13) of the Act)..............
Interstate Telecommunication Service Providers (per .00331
revenue dollar).....................................
Toll Free (per toll free subscriber) (47 CFR section .12
52.101 (f) of the rules)............................
Earth Stations (47 CFR part 25)...................... 310
Space Stations (per operational station in 119,150
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100)................................................
Space Stations (per operational system in non- 132,125
geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits--Terrestrial/Satellites .03
(per 64KB circuit)..................................
Submarine Cable Landing Licenses Fee (per cable See Table Below
system).............................................
------------------------------------------------------------------------
FY 2015 Schedule of Regulatory Fees
[Table 7 continued]
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2015 Radio Station Regulatory Fees
---------------------------------------------------------------------------------------------------------------------------------------------------------
FM Classes B,
Population served AM Class A AM Class B AM Class C AM Class D FM Classes A, C, C0, C1 &
B1 & C3 C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................ $775 $645 $590 $670 $750 $925
25,001-75,000........................................... 1,550 1,300 900 1,000 1,500 1,625
75,001-150,000.......................................... 2,325 1,625 1,200 1,675 2,050 3,000
150,001-500,000......................................... 3,475 2,750 1,800 2,025 3,175 3,925
500,001-1,200,000....................................... 5,025 4,225 3,000 3,375 5,050 5,775
1,200,001-3,000,00...................................... 7,750 6,500 4,500 5,400 8,250 9,250
>3,000,000.............................................. 9,300 7,800 5,700 6,750 10,500 12,025
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2015 Schedule of Regulatory Fees
[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
[[Page 65941]]
20 Gbps or greater...................................... 114,700
------------------------------------------------------------------------
VII. Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\1\ an Initial Regulatory Flexibility Analysis (IRFA) was
included in the Notice of Proposed Rulemaking.\2\ The Commission sought
written public comment on these proposals including comment on the
IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms to the
IRFA.\3\
---------------------------------------------------------------------------
\1\ 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).
\2\ Assessment and Collection of Regulatory Fees for Fiscal Year
2016, Notice of Proposed Rulemaking, MD Docket No. 16-166, 81 FR
35680 (2016) (FY 2016 NPRM).
\3\ 5 U.S.C. 604.
---------------------------------------------------------------------------
A. Need for, and Objectives of, the Report and Order
2. In this Report and Order, we conclude the Assessment and
Collection of Regulatory Fees for Fiscal Year (FY) 2016 proceeding to
collect $384,012,497.00 in regulatory fees for FY 2016, pursuant to
section 9 of the Communications Act of 1934, as amended (Communications
Act or Act).\4\ These regulatory fees will be due on September 27,
2016. Under section 9 of the Communications Act, regulatory fees are
mandated by Congress and collected to recover the regulatory costs
associated with the Commission's enforcement, policy and rulemaking,
user information, and international activities in an amount that can be
reasonably expected to equal the amount of the Commission's annual
appropriation.\5\
---------------------------------------------------------------------------
\4\ 47 U.S.C. 159.
\5\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------
3. This FY 2016 Report and Order adopts a regulatory fee schedule
that includes the following noteworthy changes from prior years: (1) An
increase in regulatory fees across all fee categories to offset the
Commission's facilities reduction costs; (2) an updated regulatory fee
for Direct Broadcast Satellite (DBS) providers, a subcategory in the
cable television and Internet Protocol Television (IPTV) category; and
(3) adjustments to the regulatory fees on radio and television
broadcasters, based on type and class of service and on the population
served.
B. Summary of the Significant Issues Raised by the Public Comments in
Response to the IRFA
4. None.
C. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply
5. 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.\6\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \7\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\8\ 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.\9\ Nationwide, there are a total of
approximately 27.9 million small businesses, according to the SBA.\10\
---------------------------------------------------------------------------
\6\ 5 U.S.C. 603(b)(3).
\7\ 5 U.S.C. 601(6).
\8\ 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.''
\9\ 15 U.S.C. 632.
\10\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' https://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf.
---------------------------------------------------------------------------
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.'' \11\ 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.\12\ Census data for
2012 shows that there were 3,117 firms that operated that year. Of this
total, 3,083 operated with fewer than 1,000 employees.\13\ Thus, under
this size standard, the majority of firms in this industry can be
considered small.
---------------------------------------------------------------------------
\11\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\12\ See 13 CFR 120.201, NAICS Code 517110.
\13\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------
7. Local Exchange Carriers (LECs). Neither the Commission nor the
SBA has developed a size standard for small businesses specifically
applicable to local exchange services. The closest applicable NAICS
Code category is Wired Telecommunications Carriers as defined in
paragraph 6 of this FRFA. Under the applicable SBA size standard, such
a business is small if it has 1,500 or fewer employees.\14\ According
to Commission data, census data for 2012 shows that there were 3,117
firms that operated that year. Of this total, 3,083 operated with fewer
than 1,000 employees.\15\ The Commission therefore estimates that most
providers of local exchange carrier service are small entities that may
be affected by the rules adopted.
---------------------------------------------------------------------------
\14\ 13 CFR 121.201, NAICS code 517110.
\15\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------
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
[[Page 65942]]
defined in paragraph 6 of this FRFA. Under that size standard, such a
business is small if it has 1,500 or fewer employees.\16\ According to
Commission data, 3,117 firms operated in that year. Of this total,
3,083 operated with fewer than 1,000 employees.\17\ Consequently, the
Commission estimates that most providers of incumbent local exchange
service are small businesses that may be affected by the rules and
policies adopted. Three hundred and seven (307) Incumbent Local
Exchange Carriers reported that they were incumbent local exchange
service providers.\18\ Of this total, an estimated 1,006 have 1,500 or
fewer employees.\19\
---------------------------------------------------------------------------
\16\ 13 CFR 121.201, NAICS code 517110.
\17\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\18\ See Trends in Telephone Service, Federal Communications
Commission, Wireline Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (September 2010) (Trends in
Telephone Service).
\19\ Id.
---------------------------------------------------------------------------
9. Competitive Local Exchange Carriers (Competitive LECs),
Competitive Access Providers (CAPs), Shared-Tenant Service Providers,
and Other Local Service Providers. Neither the Commission nor the SBA
has developed a small business size standard specifically for these
service providers. The appropriate NAICS Code category is Wired
Telecommunications Carriers, as defined in paragraph 6 of this FRFA.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\20\ U.S. Census data for 2012 indicate that 3,117
firms operated during that year. Of that number, 3,083 operated with
fewer than 1,000 employees.\21\ Based on this data, the Commission
concludes that the majority of Competitive LECS, CAPs, Shared-Tenant
Service Providers, and Other Local Service Providers, are small
entities. According to Commission data, 1,442 carriers reported that
they were engaged in the provision of either competitive local exchange
services or competitive access provider services.\22\ Of these 1,442
carriers, an estimated 1,256 have 1,500 or fewer employees.\23\ In
addition, 17 carriers have reported that they are Shared-Tenant Service
Providers, and all 17 are estimated to have 1,500 or fewer
employees.\24\ Also, 72 carriers have reported that they are Other
Local Service Providers.\25\ Of this total, 70 have 1,500 or fewer
employees.\26\ Consequently, based on internally researched FCC data,
the Commission estimates that most providers of competitive local
exchange service, competitive access providers, Shared-Tenant Service
Providers, and Other Local Service Providers are small entities.
---------------------------------------------------------------------------
\20\ 13 CFR 121.201, NAICS code 517110.
\21\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\22\ See Trends in Telephone Service, at Table 5.3.
\23\ Id.
\24\ Id.
\25\ Id.
\26\ Id.
---------------------------------------------------------------------------
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 FRFA. The applicable size standard under SBA rules
is that such a business is small if it has 1,500 or fewer
employees.\27\ U.S. Census data for 2012 indicates that 3,117 firms
operated during that year. Of that number, 3,083 operated with fewer
than 1,000 employees.\28\ According to internally developed Commission
data, 359 companies reported that their primary telecommunications
service activity was the provision of interexchange services.\29\ Of
this total, an estimated 317 have 1,500 or fewer employees.\30\
Consequently, the Commission estimates that the majority of
interexchange service providers are small entities that may be affected
by the rules adopted.
---------------------------------------------------------------------------
\27\ 13 CFR 121.201, NAICS code 517110.
\28\ Includes AM radio, FM radio, television (including low
power and Class A), TV/FM translators and boosters, cable and IPTV,
DBS, and Cable Television Relay Service (CARS) licenses.
\29\ See Trends in Telephone Service, at Table 5.3.
\30\ Id.
---------------------------------------------------------------------------
11. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business definition specifically for prepaid
calling card providers. The most appropriate NAICS code-based category
for defining 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. Establishments in this industry resell telecommunications;
they do not operate transmission facilities and infrastructure. Mobile
virtual networks operators (MVNOs) are included in this industry.\31\
Under the applicable SBA size standard, such a business is small if it
has 1,500 or fewer employees.\32\ U.S. Census data for 2012 show that
1,341 firms provided resale services during that year. Of that number,
1,341 operated with fewer than 1,000 employees.\33\ Thus, under this
category and the associated small business size standard, the majority
of these prepaid calling card providers can be considered small
entities. According to Commission data, 193 carriers have reported that
they are engaged in the provision of prepaid calling cards.\34\ All 193
carriers have 1,500 or fewer employees.\35\ Consequently, the
Commission estimates that the majority of prepaid calling card
providers are small entities that may be affected by the rules adopted.
---------------------------------------------------------------------------
\31\ https://www.census.gov/cgi-bin/ssd/naics/naicsrch.
\32\ 13 CFR 121.201, NAICS code 517911.
\33\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\34\ See Trends in Telephone Service, at Table 5.3.
\35\ Id.
---------------------------------------------------------------------------
12. Local Resellers. Neither the Commission nor the SBA has
developed a small business size standard specifically for 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.\36\ Census
data for 2012 show that 1,341 firms provided resale services during
that year. Of that number, 1,341 operated with fewer than 1,000
employees.\37\ Under this category and the associated small business
size standard, the majority of these local resellers can be considered
small entities. According to Commission data, 213 carriers have
reported that they are engaged in the provision of local resale
services.\38\ Of this total, an estimated 211 have 1,500 or fewer
employees.\39\ Consequently, the Commission estimates that the majority
of local resellers are small entities that may be affected by the rules
adopted.
---------------------------------------------------------------------------
\36\ 13 CFR 121.201, NAICS code 517911.
\37\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\38\ See Trends in Telephone Service, at Table 5.3.
\39\ Id.
---------------------------------------------------------------------------
13. Toll Resellers. The Commission has not developed a definition
for Toll Resellers. The closest NAICS Code Category is
Telecommunications Resellers, and the SBA has developed a small
business size standard for the category of Telecommunications
Resellers.\40\ Under that size standard, such a business is small if it
has 1,500
[[Page 65943]]
or fewer employees.\41\ Census data for 2012 show that 1,341 firms
provided resale services during that year. Of that number, 1,341
operated with fewer than 1,000 employees.\42\ Thus, under this category
and the associated small business size standard, the majority of these
resellers can be considered small entities. According to Commission
data, 881 carriers have reported that they are engaged in the provision
of toll resale services.\43\ Of this total, an estimated 857 have 1,500
or fewer employees.\44\ Consequently, the Commission estimates that the
majority of toll resellers are small entities.
---------------------------------------------------------------------------
\40\ 13 CFR 121.201, NAICS code 517911.
\41\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\42\ Id.
\43\ Trends in Telephone Service, at Table 5.3.
\44\ Id.
---------------------------------------------------------------------------
14. Other Toll Carriers. Neither the Commission nor the SBA has
developed a definition for small businesses specifically applicable to
Other Toll Carriers. This category includes toll carriers that do not
fall within the categories of interexchange carriers, operator service
providers, prepaid calling card providers, satellite service carriers,
or toll resellers. The closest applicable NAICS Code category is for
Wired Telecommunications Carriers as defined in paragraph 6 of this
FRFA. Under the applicable SBA size standard, such a business is small
if it has 1,500 or fewer employees.\45\ Census data for 2012 shows that
there were 3,117 firms that operated that year. Of this total, 3,083
operated with fewer than 1,000 employees.\46\ Thus, under this category
and the associated small business size standard, the majority of Other
Toll Carriers can be considered small. According to internally
developed Commission data, 284 companies reported that their primary
telecommunications service activity was the provision of other toll
carriage.\47\ Of these, an estimated 279 have 1,500 or fewer
employees.\48\ Consequently, the Commission estimates that most Other
Toll Carriers are small entities.
---------------------------------------------------------------------------
\45\ 13 CFR 121.201, NAICS code 517110.
\46\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\47\ Trends in Telephone Service, at Table 5.3.
\48\ Id.
---------------------------------------------------------------------------
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. Establishments in this industry have spectrum licenses and
provide services using that spectrum, such as cellular services, paging
services, wireless Internet access, and wireless video services.\49\
The appropriate size standard under SBA rules is that such a business
is small if it has 1,500 or fewer employees. For this industry, Census
data for 2012 show that there were 967 firms that operated for the
entire year. Of this total, 955 firms had fewer than 1,000 employees.
Thus under this category and the associated size standard, the
Commission estimates that the majority of wireless telecommunications
carriers (except satellite) are small entities. Similarly, according to
internally developed Commission data, 413 carriers reported that they
were engaged in the provision of wireless telephony, including cellular
service, Personal Communications Service (PCS), and Specialized Mobile
Radio (SMR) services.\50\ Of this total, an estimated 261 have 1,500 or
fewer employees.\51\ Thus, using available data, we estimate that the
majority of wireless firms can be considered small.
---------------------------------------------------------------------------
\49\ NAICS Code 517210. See https://www.census.gov/cgi-bin/ssd/
naics/naiscsrch.
\50\ Trends in Telephone Service, at Table 5.3.
\51\ Id.
---------------------------------------------------------------------------
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.'' \52\ These establishments
also produce or transmit visual programming to affiliated broadcast
television stations, which in turn broadcast the programs to the public
on a predetermined schedule. Programming may originate in their own
studio, from an affiliated network, or from external sources. The SBA
has created the following small business size standard for Television
Broadcasting firms: Those having $38.5 million or less in annual
receipts.\53\ The 2012 Economic Census reports that 751 television
broadcasting firms operated during that year. Of that number, 656 had
annual receipts of less than $25 million per year. Based on that Census
data we conclude that a majority of firms that operate television
stations are small. The Commission has estimated the number of licensed
commercial television stations to be 1,387.\54\ 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.\55\ We therefore estimate
that the majority of commercial television broadcasters are small
entities.
---------------------------------------------------------------------------
\52\ U.S. Census Bureau, 2012 NAICS Code Economic Census
Definitions, https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\53\ 13 CFR 121.201, NAICS code 515120.
\54\ 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.
\55\ We recognize that BIA's estimate differs slightly from the
FCC total given supra.
---------------------------------------------------------------------------
17. In assessing whether a business concern qualifies as small
under the above definition, business (control) affiliations \56\ 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.
---------------------------------------------------------------------------
\56\ ``[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).
---------------------------------------------------------------------------
18. In addition, the Commission has estimated the number of
licensed noncommercial educational (NCE) television stations to be
396.\57\ These stations are non-profit, and therefore considered to be
small entities.\58\ There are also 2,528 low power television stations,
including Class A stations (LPTV).\59\ 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.
---------------------------------------------------------------------------
\57\ 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.
\58\ See generally 5 U.S.C. 601(4), (6).
\59\ 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.
---------------------------------------------------------------------------
19. Radio Stations. 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
[[Page 65944]]
network, or from external sources.'' \60\ The SBA has established a
small business size standard for this category, which is: Such firms
having $38.5 million or less in annual receipts.\61\ Census data for
2012 show that 2,849 radio station firms operated during that year. Of
that number, 2,806 operated with annual receipts of less than $25
million per year.\62\ According to Commission staff review of BIA
Advisory Services, LLC's Media Access Pro Radio Database, on March 28,
2012, about 10,759 (97 percent) of 11,102 commercial radio stations had
revenues of $38.5 million or less. Therefore, the majority of such
entities are small entities.
---------------------------------------------------------------------------
\60\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\61\ 13 CFR 121.201, NAICS code 515112.
\62\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------
20. In assessing whether a business concern qualifies as small
under the above size standard, business affiliations must be
included.\63\ In addition, to be determined to be a ``small business,''
the entity may not be dominant in its field of operation.\64\ 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.
---------------------------------------------------------------------------
\63\ ``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).
\64\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------
21.Cable Television and Other Subscription Programming. This
industry comprises establishments primarily engaged in operating
studios and facilities for the broadcasting of programs on a
subscription or fee basis. The broadcast programming is typically
narrowcast in nature (e.g., limited format, such as news, sports,
education, or youth-oriented). These establishments produce programming
in their own facilities or acquire programming from external sources.
The programming material is usually delivered to a third party, such as
cable systems or direct-to-home satellite systems, for transmission to
viewers.\65\ The SBA has established a size standard for this industry
of $38.5 million or less. Census data for 2012 shows that there were
367 firms that operated that year. Of this total, 319 operated with
annual receipts of less than $25 million.\66\ 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.
---------------------------------------------------------------------------
\65\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\66\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US-51SSSZ5&prodType=Table.
---------------------------------------------------------------------------
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.\67\ Industry data
indicate that there are currently 4,600 active cable systems in the
United States.\68\ Of this total, all but ten cable operators
nationwide are small under the 400,000-subscriber size standard.\69\ In
addition, under the Commission's rate regulation rules, a ``small
system'' is a cable system serving 15,000 or fewer subscribers.\70\
Current Commission records show 4,600 cable systems nationwide.\71\ Of
this total, 3,900 cable systems have fewer than 15,000 subscribers, and
700 systems have 15,000 or more subscribers, based on the same
records.\72\ Thus, under this standard as well, we estimate that most
cable systems are small entities.
---------------------------------------------------------------------------
\67\ 47 CFR 76.901(e).
\68\ 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.
\69\ See SNL KAGAN at www.snl.com/interactiveX/top cableMSOs
aspx?period2015Q1&sortcol=subscribersbasic&sortorder=desc.
\70\ 47 CFR 76.901(c).
\71\ See footnote 2, supra.
\72\ August 5, 2015 report from the Media Bureau based on its
research in COALS. See www.fcc.gov/coals.
---------------------------------------------------------------------------
23. Cable System Operators (Telecom Act Standard). The
Communications Act 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.'' \73\ There are approximately 52,403,705 cable video
subscribers in the United States today.\74\ 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.\75\
Based on available data, we find that all but nine incumbent cable
operators are small entities under this size standard.\76\ 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.\77\ Although it seems certain that some
of these cable system operators are affiliated with entities whose
gross annual revenues exceed $250 million, 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.
---------------------------------------------------------------------------
\73\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\74\ See SNL KAGAN at www.snl.com/interactivex/MultichannelIndustryBenchmarks.aspx.
\75\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\76\ See SNL KAGAN at www.snl.com/interactivex/TopCable
MSOs.aspx.
\77\ 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).
---------------------------------------------------------------------------
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.\78\ The SBA determines that a wireline business is small
if it has fewer than 1,500 employees.\79\ Census data for 2012 indicate
that 3,117 wireline companies were operational during that year. Of
that number, 3,083 operated with fewer than 1,000 employees.\80\ Based
on that data, we conclude that the majority of
[[Page 65945]]
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: AT&T and DISH Network.\81\ AT&T 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.
---------------------------------------------------------------------------
\78\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\79\ NAICs CODE 517110; 13 CFR 121.201.
\80\ https://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
\81\ See 15th Annual Video Competition Report, 28 FCC Rcd at
1057, Section 27.
---------------------------------------------------------------------------
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.\82\ The SBA has
developed a small business size standard for ``All Other
Telecommunications,'' which consists of all such firms with gross
annual receipts of $32.5 million or less.\83\ For this category, census
data for 2012 show that there were 1,442 firms that operated for the
entire year. Of these firms, a total of 1,400 had gross annual receipts
of less than $25 million.\84\ Thus, a majority of ``All Other
Telecommunications'' firms potentially affected by the rules adopted
can be considered small.
---------------------------------------------------------------------------
\82\ https://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
\83\ 13 CFR 121.201; NAICS Code 517919.
\84\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
26. RespOrgs. RespOrgs, i.e., Responsible Organizations, 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.\85\ Although RespOrgs are often wireline
carriers, they can also include non-carrier entities. Therefore, in the
definition herein of RespOrgs, two categories are presented, i.e.,
Carrier RespOrgs and Non-Carrier RespOrgs.
---------------------------------------------------------------------------
\85\ See 47 CFR 52.101(b).
---------------------------------------------------------------------------
27. Carrier RespOrgs. Neither the Commission, the U.S. Census, nor
the SBA have developed a definition for Carrier RespOrgs. Accordingly,
the Commission believes that the closest NAICS Code-based definitional
categories for Carrier RespOrgs are Wired Telecommunications
Carriers,\86\ and Wireless Telecommunications Carriers (except
satellite).\87\
---------------------------------------------------------------------------
\86\ 13 CFR 121.201, NAICS Code 517110.
\87\ 13 CFR 121.201, NAICS Code 517210.
---------------------------------------------------------------------------
28. The U.S. Census Bureau defines Wired Telecommunications
Carriers 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.\88\ 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.\89\ Census data for 2012 show that there were 3,117 Wired
Telecommunications Carrier firms that operated for that entire year. Of
that number, 3,083 operated with less than 1,000 employees.\90\ Based
on that data, we conclude that the majority of Carrier RespOrgs that
operated with wireline-based technology are small.
---------------------------------------------------------------------------
\88\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\89\ 13 CFR 120,201, NAICS Code 517110.
\90\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
29. The U.S. Census Bureau defines Wireless Telecommunications
Carriers (except satellite) as 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.\91\
The appropriate size standard under SBA rules is that such a business
is small if it has 1,500 or fewer employees.\92\ Census data for 2012
show that 967 Wireless Telecommunications Carriers operated in that
year. Of that number, 955 operated with less than 1,000 employees.\93\
Based on that data, we conclude that the majority of Carrier RespOrgs
that operated with wireless-based technology are small.
---------------------------------------------------------------------------
\91\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\92\ 13 CFR 120.201, NAICS Code 517120.
\93\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
30. Non-Carrier RespOrgs. Neither the Commission, the Census, nor
the SBA have developed a definition of Non-Carrier RespOrgs.
Accordingly, the Commission believes that the closest NAICS Code-based
definitional categories for Non-Carrier RespOrgs are ``Other Services
Related To Advertising'' \94\ and ``Other Management Consulting
Services.'' \95\
---------------------------------------------------------------------------
\94\ 13 CFR 120.201, NAICS Code 541890.
\95\ 13 CFR 120.201, NAICS Code 541618.
---------------------------------------------------------------------------
31. The U.S. Census defines Other Services Related to Advertising
as comprising establishments primarily engaged in providing advertising
services (except advertising agency services, public relations agency
services, media buying agency services, media representative services,
display advertising services, direct mail advertising services,
advertising material distribution services, and marketing consulting
services? \96\ The SBA has established a size standard for this
industry as annual receipts of $15 million dollars or less.\97\ Census
data for 2012 show that 5,804 firms operated in this industry for the
entire year. Of that number, 5,249 operated with annual receipts of
less than $10 million.\98\ Based on that data we conclude that the
majority of Non-Carrier RespOrgs who provide TFN-related advertising
services are small.
---------------------------------------------------------------------------
\96\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\97\ 13 CFR 120.201, NAICS Code 541890.
\98\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
32. The U.S. Census defines Other Management Consulting Services as
establishments primarily engaged in providing management consulting
services (except administrative and general management consulting;
human resources consulting; marketing consulting; or process, physical
distribution, and logistics consulting). Establishments providing
telecommunications or utilities management consulting services are
included in this industry.\99\ The SBA has established a size standard
for this industry of $15 million dollars or
[[Page 65946]]
less.\100\ Census data for 2012 show that 3,683 firms operated in this
industry for that entire year. Of that number, 3,632 operated with less
than $10 million in annual receipts.\101\ Based on this data, we
conclude that a majority of non-carrier RespOrgs who provide TFN-
related management consulting services are small.\102\
---------------------------------------------------------------------------
\99\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\100\ 13 CFR 120.201, NAICS CODE 514618.
\101\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
\102\ The four NAICS Code-based categories selected above to
provide definitions for Carrier and Non-Carrier RespOrgs were
selected because as a group they refer generically and
comprehensively to all RespOrgs. Therefore, all RespOrgs, including
those not identified specifically or individually, must comply with
the rules adopted in the Regulatory Fees Report and Order associated
with this Final Regulatory Flexibility Analysis.
---------------------------------------------------------------------------
33. In addition to the data contained in the four (see above) U.S.
Census NAICS Code categories that provide definitions of what services
and functions the Carrier and Non-Carrier RespOrgs provide, Somos, the
trade association that monitors RespOrg activities, compiled data
showing that as of July 1, 2016 there were 23 RespOrgs operational in
Canada and 436 RespOrgs operational in the United States, for a total
of 459 RespOrgs currently registered with Somos.\103\
---------------------------------------------------------------------------
\103\ Email from Jennifer Blanchard of Somos dated July 1, 2016.
---------------------------------------------------------------------------
D. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
34. This Report and Order does not adopt any new reporting,
recordkeeping, or other compliance requirements.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
35. 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.\104\
---------------------------------------------------------------------------
\104\ 5 U.S.C. 603(c)(1) through (c)(4).
---------------------------------------------------------------------------
36. This Report and Order does not adopt any new reporting
requirements. Therefore no adverse economic impact on small entities
will be sustained based on reporting requirements.
37. In keeping with the requirements of the Regulatory Flexibility
Act, we have considered certain alternative means of mitigating the
effects of fee increases to a particular industry segment. For example,
beginning last year, in FY 2015, the Commission increased the de
minimis threshold from under $10 to $500 (the total of all annual
regulatory fees), which will impact many small entities that pay
regulatory fees for ITSP, paging, cellular, cable, and Low Power
Television/FM Translators. Historically, many of these small entities
have been late in making their fee payments to the Commission by the
due date. This increase in the de minimis threshold to $500 will
relieve regulatees both financially and administratively. This Report
and Order also adopts regulatory fees for the smaller market AM and FM
stations at a lower amount than had been proposed. Finally, regulatees
may also seek waivers or other relief on the basis of financial
hardship. See 47 CFR 1.1166.
F. Federal Rules That May Duplicate, Overlap, or Conflict
38. None.
VIII. Ordering Clauses
39. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and
(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47
U.S.C. 154(i), 154(j), 159, and 303(r), this Report and Order IS HEREBY
ADOPTED.
40. IT IS FURTHER ORDERED that this Report and Order SHALL BE
EFFECTIVE September 26, 2016.
41. IT IS FURTHER ORDERED that the Commission's Consumer &
Governmental Affairs Bureau, Reference Information Center, SHALL SEND a
copy of this Report and Order, including the Final Regulatory
Flexibility Analysis, to the Chief Counsel for Advocacy of the U.S.
Small Business Administration.
List of Subjects in 47 CFR Part 1
Administrative practice and procedure, Radio, Reporting and
recordkeeping requirements.
Federal Communications Commission.
Marlene H. Dortch.
Secretary.
Rule Changes
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR, part 1 as follows:
PART 1--PRACTICE AND PROCEDURE
0
1. The authority citation for part 1 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 155, 157, 225, 303(r), 309,
1403, 1404, 1451, and 1452.
0
2. Section 1.1152 is revised to read as follows:
Sec. 1.1152 Schedule of annual regulatory fees for wireless radio
services.
------------------------------------------------------------------------
Exclusive use services (per license) Fee amount \1\
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz and 220 MHz Local, Base
Station & SMRS) (47 CFR part 90)
(a) New, Renew/Mod (FCC 601 & 159).................... $25.00
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) 25.00
(c) Renewal Only (FCC 601 & 159)...................... 25.00
(d) Renewal Only (Electronic Filing) (FCC 601 & 159).. 25.00
220 MHz Nationwide:
(a) New, Renew/Mod (FCC 601 & 159).................... 25.00
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) 25.00
(c) Renewal Only (FCC 601 & 159)...................... 25.00
(d) Renewal Only (Electronic Filing) (FCC 601 & 159).. 25.00
2. Microwave (47 CFR Pt. 101) (Private)
(a) New, Renew/Mod (FCC 601 & 159).................... 25.00
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) 25.00
(c) Renewal Only (FCC 601 & 159)...................... 25.00
(d) Renewal Only (Electronic Filing) (FCC 601 & 159).. 25.00
3. Shared Use Services Land Mobile (Frequencies Below
470 MHz--except 220 MHz)
[[Page 65947]]
(a) New, Renew/Mod (FCC 601 & 159).................... 10.00
(b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159) 10.00
(c) Renewal Only (FCC 601 & 159)...................... 10.00
(d) Renewal Only (Electronic Filing) (FCC 601 & 159).. 10.00
Rural Radio (Part 22):
(a) New, Additional Facility, Major Renew/Mod 10.00
(Electronic Filing) (FCC 601 & 159)..................
(b) Renewal, Minor Renew/Mod (Electronic Filing) (FCC 10.00
601 & 159) Marine Coast..............................
(a) New Renewal/Mod (FCC 601 & 159)................... 40.00
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 40.00
159).................................................
(c) Renewal Only (FCC 601 & 159)...................... 40.00
(d) Renewal Only (Electronic Filing) (FCC 601 & 159).. 40.00
Aviation Ground:
(a) New, Renewal/Mod (FCC 601 & 159).................. 20.00
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 & 20.00
159).................................................
(c) Renewal Only (FCC 601 & 159)...................... 20.00
(d) Renewal Only (Electronic Only) (FCC 601 & 159).... 20.00
Marine Ship
(a) New, Renewal/Mod (FCC 605 & 159).................. 15.00
(b) New, Renewal/Mod (Electronic Filing) (FCC 605 & 15.00
159).................................................
(c) Renewal Only (FCC 605 & 159)...................... 15.00
(d) Renewal Only (Electronic Filing) (FCC 605 & 159).. 15.00
Aviation Aircraft:
(a) New, Renew/Mod (FCC 605 & 159).................... 10.00
(b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159) 10.00
(c) Renewal Only (FCC 605 & 159)...................... 10.00
(d) Renewal Only (Electronic Filing) (FCC 605 & 159).. 10.00
4. CMRS Cellular/Mobile Services (per unit) (FCC 159) \2\ .20
5. CMRS Messaging Services (per unit) (FCC 159) \3\.08
6. Broadband Radio Service (formerly MMDS and MDS) 725
7. Local Multipoint Distribution Service 725
------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire
license term. Therefore, the annual fee amount shown in this table
that is a small fee (categories 1 through 5) must be multiplied by the
10-year license term to arrive at the total amount of regulatory fees
owed. Also, application fees may apply as detailed in section 1.1102
of this chapter.
\2\ These are standard fees that are to be paid in accordance with
section 1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with
section 1.1157(b) of this chapter.
0
3. Section 1.1153 is revised to read as follows:
Sec. 1.1153 Schedule of annual regulatory fees and filing locations
for mass media services.
------------------------------------------------------------------------
Radio [AM and FM] (47 CFR part 73) Fee amount
------------------------------------------------------------------------
1. AM Class A:
<=25,000 population................................... $990
25,001-75,000 population.............................. 1,475
75,001-150,000 population............................. 2,200
150,001-500,000 population............................ 3,300
500,001-1,200,000 population.......................... 5,500
1,200,001-3,000,000 population........................ 8,250
3,000,001-6,000,000 population........................ 11,000
>6,000,000 population................................. 13,750
2. AM Class B:
<=25,000 population................................... 715
25,001-75,000 population.............................. 1,075
75,001-150,000 population............................. 1,600
150,001-500,000 population............................ 2,375
500,001-1,200,000 population.......................... 3,975
1,200,001-3,000,000 population........................ 5,950
3,000,001-6,000,000 population........................ 7,950
>6,000,000 population................................. 9,950
3. AM Class C:
<=25,000 population................................... 620
25,001-75,000 population.............................. 925
75,001-150,000 population............................. 1,375
150,001-500,000 population............................ 2,075
500,001-1,200,000 population.......................... 3,450
1,200,001-3,000,000 population........................ 5,175
3,000,001-6,000,000 population........................ 6,900
>6,000,000 population................................. 8,625
4. AM Class D:
<=25,000 population................................... 685
25,001-75,000 population.............................. 1,025
75,001-150,000 population............................. 1,525
150,001-500,000 population............................ 2,275
500,001-1,200,000 population.......................... 3,800
1,200,001-3,000,000 population........................ 5,700
3,000,001-6,000,000 population........................ 7,600
>6,000,000 population................................. 9,500
5. AM Construction Permit............................... 620
6. FM Classes A, B1 and C3:
<=25,000 population................................... 1,075
25,001-75,000 population.............................. 1,625
75,001-150,000 population............................. 2,400
150,001-500,000 population............................ 3,600
500,001-1,200,000 population.......................... 6,000
1,200,001-3,000,000 population........................ 9,000
3,000,001-6,000,000 population........................ 12,000
>6,000,000 population................................. 15,000
7. FM Classes B, C, C0, C1 and C2:
<=25,000 population................................... 1,250
25,001-75,000 population.............................. 1,850
75,001-150,000 population............................. 2,750
150,001-500,000 population............................ 4,125
500,001-1,200,000 population.......................... 6,875
1,200,001-3,000,000 population........................ 10,300
3,000,001-6,000,000 population........................ 13,750
>6,000,000 population................................. 17,175
8. FM Construction Permits 1,075
------------------------------------------------------------------------
TV (47 CFR, part 73) ..............
------------------------------------------------------------------------
Digital TV (UHF and VHF Commercial Stations):
1. Markets 1 thru 10.................................. $60,675
2. Markets 11 thru 25................................. 45,675
3. Markets 26 thru 50................................. 30,525
[[Page 65948]]
4. Markets 51 thru 100................................ 15,200
5. Remaining Markets.................................. 5,000
6. Construction Permits............................... 5,000
Satellite UHF/VHF Commercial:
1. All Markets........................................ 1,750
Low Power TV, Class A TV, TV/FM Translator, & TV/FM 455
Booster (47 CFR part 74).............................
------------------------------------------------------------------------
0
4. Section 1.1154 is revised to read as follows:
Sec. 1.1154 Schedule of annual regulatory charges for common carrier
services.
------------------------------------------------------------------------
Radio facilities Fee amount
------------------------------------------------------------------------
1. Microwave (Domestic Public Fixed) $25.00.
(Electronic Filing) (FCC Form 601 &
159).
Carriers
1. Interstate Telephone Service $.00371.
Providers (per interstate and
international end-user revenues (see
FCC Form 499-A).
2. Toll Free Number Fee............... $.13 per Toll Free Number.
------------------------------------------------------------------------
0
5. Section 1.1155 is revised to read as follows:
Sec. 1.1155 Schedule of regulatory fees for cable television
services.
------------------------------------------------------------------------
Fee amount
------------------------------------------------------------------------
1. Cable Television Relay Service....... $775.
2. Cable TV System, Including IPTV (per $1.00.
subscriber).
3. Direct Broadcast Satellite (DBS)..... $.27 per subscriber.
------------------------------------------------------------------------
0
6. Section 1.1156 is revised to read as follows:
Sec. 1.1156 Schedule of regulatory fees for international services.
(a) The following schedule applies for the listed services:
------------------------------------------------------------------------
Fee category Fee amount
------------------------------------------------------------------------
Space Stations (Geostationary Orbit).... $138,475.
Space Stations (Non-Geostationary Orbit) $151,950.
Earth Stations: Transmit/Receive & $345.
Transmit only (per authorization or
registration).
------------------------------------------------------------------------
(b) International Terrestrial and Satellite. (1) Regulatory fees
for International Bearer Circuits are to be paid by facilities-based
common carriers that have active (used or leased) international bearer
circuits as of December 31 of the prior year in any terrestrial or
satellite transmission facility for the provision of service to an end
user or resale carrier, which includes active circuits to themselves or
to their affiliates. In addition, non-common carrier satellite
operators must pay a fee for each circuit sold or leased to any
customer, including themselves or their affiliates, other than an
international common carrier authorized by the Commission to provide
U.S. international common carrier services. ``Active circuits'' for
these purposes include backup and redundant circuits. In addition,
whether circuits are used specifically for voice or data is not
relevant in determining that they are active circuits.
(2) The fee amount, per active 64 KB circuit or equivalent will be
determined for each fiscal year.
------------------------------------------------------------------------
International terrestrial and satellite
(capacity as of December 31, 2015) Fee amount
------------------------------------------------------------------------
Terrestrial Common Carrier.............. $0.02 per 64 KB Circuit.
Satellite Common Carrier................
Satellite Non-Common Carrier............
------------------------------------------------------------------------
(c) Submarine cable: Regulatory fees for submarine cable systems
will be paid annually, per cable landing license, for all submarine
cable systems operating as of December 31 of the prior year. The fee
amount will be determined by the Commission for each fiscal year.
------------------------------------------------------------------------
Submarine cable systems (capacity as of
Dec. 31, 2015) Fee amount
------------------------------------------------------------------------
<2.5 Gbps............................... $8,325.
2.5 Gbps or greater, but less than 5 $16,650.
Gbps.
5 Gbps or greater, but less than 10 Gbps $33,300.
10 Gbps or greater, but less than 20 $66,600.
Gbps.
20 Gbps or greater...................... $133,200.
------------------------------------------------------------------------
[FR Doc. 2016-22216 Filed 9-23-16; 8:45 am]
BILLING CODE 6712-01-P
