Assessment and Collection of Regulatory Fees for Fiscal Year 2017, 26019-26041 [2017-11578]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 82, Number 107 (Tuesday, June 6, 2017)]
[Proposed Rules]
[Pages 26019-26041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11578]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket Nos. 17-134; FCC 17-62]


Assessment and Collection of Regulatory Fees for Fiscal Year 2017

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) will revise its Schedule of Regulatory Fees in order to 
recover an amount of $356,710,992 that Congress has required the 
Commission to collect for fiscal year 2017, as amended, provides for 
the annual assessment and collection of regulatory fees under and 
respectively, for annual ``Mandatory Adjustments'' and ``Permitted 
Amendments'' to the Schedule of Regulatory Fees.

DATES: Submit comments on or before June 22, 2017, and reply comments 
on or before July 7, 2017.

ADDRESSES: You may submit comments, identified by MD Docket No. 17-134, 
by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web site: https://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
     People With Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: FCC504@fcc.gov or phone: 202-418-
0530 or TTY: 202-418-0432.
     Email: ecfs@fcc.gov. Include MD Docket No. 15-121 in the 
subject line of the message.
     Mail: Commercial overnight mail (other than U.S. Postal 
Service Express Mail, and Priority Mail, must be sent to 9300 East 
Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th 
Street SW., Washington, DC 20554.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

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

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking (NPRM), FCC 17-62, MD Docket No. 17-134 adopted 
on May 22, 2017 and released on May 23, 2017. The full text of this 
document is available for inspection and copying during normal business 
hours in the FCC Reference Center, 445 12th Street SW., Room CY-A257, 
Portals II, Washington, DC 20554, and may also be purchased from the 
Commission's copy contractor, BCPI, Inc., Portals II, 445 12th Street 
SW., Room CY-B402, Washington, DC 20554. Customers may contact BCPI, 
Inc. via their Web site, https://www.bcpi.com, or call 1-800-378-3160. 
This document is available in alternative formats (computer diskette, 
large print, audio record, and braille). Persons with disabilities who 
need documents in these formats may contact the FCC by email: 
FCC504@fcc.gov or phone: 202-418-0530 or TTY: 202-418-0432.

I. Procedural Matters

A. Ex Parte Rules Permit-But-Disclose Proceeding

    1. This Notice of Proposed Rulemaking (FY 2017 NPRM) shall be 
treated as a ``permit-but-disclose'' proceeding in accordance with the 
Commission's ex parte rules. Persons making ex parte presentations must 
file a copy of any written presentation or a memorandum summarizing any 
oral presentation within two business days after the presentation 
(unless a different deadline applicable to the Sunshine period 
applies). Persons making oral ex parte presentations are reminded that 
memoranda summarizing the presentation must list all persons attending 
or otherwise participating in the meeting at which the ex parte 
presentation was made, and summarize all data presented and arguments 
made during the presentation. If the presentation consisted in whole or 
in part of the presentation of data or arguments already reflected in 
the presenter's written comments, memoranda, or other filings in the 
proceeding, the presenter may provide citations to such data or 
arguments in his or her prior comments, memoranda, or other filings 
(specifying the relevant page and/or paragraph numbers where such data 
or arguments can be found) in

[[Page 26020]]

lieu of summarizing them in the memorandum. Documents shown or given to 
Commission staff during ex parte meetings are deemed to be written ex 
parte presentations and must be filed consistent with section 
1.1206(b). In proceedings governed by section 1.49(f) or for which the 
Commission has made available a method of electronic filing, written ex 
parte presentations and memoranda summarizing oral ex parte 
presentations, and all attachments thereto, must be filed through the 
electronic comment filing system available for that proceeding, and 
must be filed in their native format (e.g., .doc, .xml, .ppt, 
searchable .pdf). Participants in this proceeding should familiarize 
themselves with the Commission's ex parte rules.

B. Comment Filing Procedures

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

C. Initial Regulatory Flexibility Analysis

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

D. Initial Paperwork Reduction Act of 1995 Analysis

    6. This document does not contain new or modified information 
collection requirements subject to the Paperwork Reduction Act of 1995 
(PRA), Public Law 104-13. In addition, therefore, it does not contain 
any new or modified information collection burden for small business 
concerns with fewer than 25 employees, pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4).

II. Introduction

    7. In this Notice of Proposed Rulemaking, we seek comment on the 
Commission's proposed regulatory fees for fiscal year (FY) 2017. We 
propose to collect $356,710,992 in regulatory fees for FY 2017, as 
detailed in the proposed fee schedules attached in Table 4.

III. Background

    8. The Commission is required by Congress to assess regulatory fees 
each year in an amount that can reasonably be expected to equal the 
amount of its appropriation.\1\ Regulatory fees, mandated by Congress, 
are collected ``to recover the costs of . . . enforcement activities, 
policy and rulemaking activities, user information services, and 
international activities.'' \2\ Regulatory fees are to ``be derived by 
determining the full-time equivalent number of employees performing'' 
these activities, ``adjusted to take into account factors that are 
reasonably related to the benefits provided to the payer of the fee by 
the Commission's activities . . . .'' \3\ Regulatory fees recover 
direct costs, such as salary and expenses; indirect costs, such as 
overhead functions; and support costs, such as rent, utilities, or 
equipment.\4\ Regulatory fees also cover the costs incurred in 
regulating entities that are statutorily exempt from paying regulatory 
fees,\5\ entities whose regulatory fees are waived,\6\ and entities 
providing services for which we do not assess regulatory fees.
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    \1\ 47 U.S.C. 159(b)(1)(B). The Commission collected $4.25 
million above the required regulatory fee target goal in FY 2016, 
which the Commission deposited into the U.S. Treasury. The 
cumulative overcollection is $102.62 million as of September 30, 
2016.
    \2\ 47 U.S.C. 159(a).
    \3\ 47 U.S.C. 159(b)(1)(A).
    \4\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2004, Report and Order, 19 FCC Rcd 11662, 11666, para. 11 (2004) (FY 
2004 Report and Order).
    \5\ For example, governmental and nonprofit entities are exempt 
from regulatory fees under section 9(h). 47 U.S.C. 159(h); 47 CFR 
1.1162.
    \6\ 47 CFR 1.1166.
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    9. Congress sets the amount the Commission must collect each year 
in the Commission's fiscal year appropriations. Section 9(a)(2) of the 
Communications Act of 1934, as amended (Communications Act or Act) 
requires the Commission to collect fees sufficient to offset the amount 
appropriated.\7\ To calculate regulatory fees, the Commission allocates 
the total collection target across all regulatory fee categories. The 
allocation of fees to fee categories is based on the Commission's 
calculation of Full Time Employees (or

[[Page 26021]]

FTEs) in each regulatory fee category.\8\ FTEs are classified as 
``direct'' if the employee is in one of the four ``core'' bureaus; 
otherwise, that employee is considered an ``indirect'' FTE.\9\ The 
total FTEs for each fee category includes the direct FTEs associated 
with that category, plus a proportional allocation of indirect 
FTEs.\10\ The Commission then allocates the total amount to be 
collected among the various regulatory fee categories within each of 
the core bureaus. Each regulatee within a fee category pays its 
proportionate share based on an objective measure, e.g., revenues or 
number of subscribers.\11\
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    \7\ 47 U.S.C. 159(a)(2).
    \8\ One FTE is a unit of measure equal to the work performed 
annually by a full time person (working a 40 hour workweek for a 
full year) assigned to the particular job, and subject to agency 
personnel staffing limitations established by the U.S. Office of 
Management and Budget.
    \9\ The core bureaus are the Wireline Competition Bureau, 
Wireless Telecommunications Bureau, Media Bureau, and part of the 
International Bureau. The indirect FTEs are the employees from the 
following bureaus and offices: Enforcement Bureau, Consumer & 
Governmental Affairs Bureau, Public Safety and Homeland Security 
Bureau, part of the International Bureau, Chairman and 
Commissioners' offices, Office of the Managing Director, Office of 
General Counsel, Office of the Inspector General, Office of 
Communications Business Opportunities, Office of Engineering and 
Technology, Office of Legislative Affairs, Office of Strategic 
Planning and Policy Analysis, Office of Workplace Diversity, Office 
of Media Relations, and Office of Administrative Law Judges.
    \10\ The Commission observed in the FY 2013 Report and Order 
that ``the high percentage of the indirect FTEs is indicative of the 
fact that many Commission activities and costs are not limited to a 
particular fee category and instead benefit the Commission as a 
whole.'' See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2013, Report and Order, 28 FCC Rcd 12351, 12357, para. 17 
(2013) (FY 2013 Report and Order).
    \11\ See Procedures for Assessment and Collection of Regulatory 
Fees, Notice of Proposed Rulemaking, 27 FCC Rcd 8458, 8461 through 
62, paras. 8 through 11 (2012) (FY 2012 NPRM).
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    10. 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.\12\ The Commission will make changes to the 
regulatory fee schedule ``if the Commission determines that the 
schedule requires amendment to comply with the requirements'' \13\ of 
section 9(b)(1)(A) of the Act.\14\ 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.'' \15\
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    \12\ 47 U.S.C. 159(b)(1)(B).
    \13\ 47 U.S.C. 159(b)(2).
    \14\ 47 U.S.C. 159(b)(1)(A).
    \15\ 47 U.S.C. 159(b)(3).
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    11. As part of its annual review, the Commission regularly seeks to 
improve its regulatory fee analysis. For example, in the FY 2013 Report 
and Order, the Commission adopted updated FTE allocations to more 
accurately reflect the number of FTEs working on regulation and 
oversight of the regulatees in the various fee categories; \16\ 
reallocated some FTEs from the International Bureau as indirect; \17\ 
combined the UHF and VHF television stations into one regulatory fee 
category; \18\ and added Internet Protocol Television (IPTV) to the 
cable television regulatory fee category.\19\ Subsequently, in the FY 
2014 Report and Order, the Commission adopted a new regulatory fee 
subcategory for toll free numbers within the Interstate 
Telecommunications Service Provider (ITSP) \20\ category; \21\ 
increased the de minimis threshold to $500 for annual regulatory fee 
payors; \22\ and eliminated several categories from the regulatory fee 
schedule.\23\ In the FY 2015 NPRM, the Commission adjusted regulatory 
fees for radio and television broadcasters, based on the type and class 
of service and on the population served; \24\ adopted an increase in 
the regulatory fee for Direct Broadcast Satellite (DBS) providers in 
the subcategory within the cable television and IPTV regulatory fee 
category; \25\ and adopted an across the board fee increase for the 
Commission's moving expenses.\26\
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    \16\ FY 2013 Report and Order, 28 FCC Rcd at 12354-58, paras. 
10-20. The Commission now updates the FTE allocations annually. This 
was recommended in a report issued by the Government Accountability 
Office (GAO) in 2012. See GAO ``Federal Communications Commission 
Regulatory Fee Process Needs to be Updated,'' GAO-12-686 (August 
2012) (GAO Report) at 36 (available at https://www.gao.gov/products/GAO-12-686).
    \17\ FY 2013 Report and Order, 28 FCC Rcd at 12355 through 58, 
paras. 13 through 20.
    \18\ Id., 28 FCC Rcd at 12361 through 62, paras. 29 through 31.
    \19\ Id., 28 FCC Rcd at 12362-63, paras. 32-33.
    \20\ The ITSP category includes interexchange carriers (IXCs), 
incumbent local exchange carriers, toll resellers, and other IXC 
service providers.
    \21\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2014, Report and Order and Further Notice of Proposed 
Rulemaking, 29 FCC Rcd 10767, 10777 through 79, paras. 25 through 28 
(2014) (FY 2014 Report and Order).
    \22\ FY 2014 Report and Order, 29 FCC Rcd at 10774 through 76, 
paras. 18 through 21.
    \23\ Id., 29 FCC Rcd at 10776-77, paras. 22 through 24.
    \24\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2016, Report and Order, 31 FCC Rcd 10339, 10350-51, paras. 31 
through 33 (2016) (FY 2016 Report and Order).
    \25\ FY 2016 Report and Order, 31 FCC Rcd at 10347-350, paras. 
25-30.
    \26\ Id., 31 FCC Rcd at 10341, para. 7.
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IV. Discussion

    12. The Commission proposes to collect $356,710,992 in regulatory 
fees for FY 2017,\27\ pursuant to section 9 of the Communications 
Act.\28\ These regulatory fees are mandated by Congress and are 
collected ``to recover the costs of . . . enforcement activities, 
policy and rulemaking activities, user information services, and 
international activities.'' \29\ We seek comment on the proposed 
regulatory fee schedule in Table 4.
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    \27\ See Consolidated Appropriations Act, 2017, Division E--
Financial Services and General Government Appropriations Act, 2017, 
Title V--Independent Agencies, Public Law 115-31 (May 5, 2017), 
available at https://www.congress.gov/bill/115th-congress/house-bill/244/text. This provides the Commission with $356,710,992 for 
salaries and expenses, to be raised through section 9 regulatory 
fees, of which $16,866,992 is directed to be spent on completing the 
Commission's move and/or restacking.
    \28\ 47 U.S.C. 159.
    \29\ 47 U.S.C. 159(a).
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A. Allocating FTEs for Regulatory Fee Purposes

    13. Under section 9 of the Act, regulatory fees are to ``be derived 
by determining the full-time equivalent number of employees 
performing'' these activities, ``adjusted to take into account factors 
that are reasonably related to the benefits provided to the payer of 
the fee by the Commission's activities . . . .'' \30\ As a general 
matter, we reasonably expect that the work of the FTEs in the core 
bureaus should remain focused on the industry segment regulated by each 
of those bureaus. The work of the FTEs in the indirect bureaus and 
offices benefits the Commission and the telecommunications industry and 
is not specifically focused on the licensees of a particular core 
bureau. Given the significant implications of reassignment of FTEs in 
our fee calculation, we make changes to FTE classifications only after 
performing considerable analysis and finding the clearest case for 
reassignment.\31\ For example, the Commission in the FY 2016 Report and 
Order declined to combine the regulatory fee categories for CMRS and 
ITSP categories, finding that doing so would not account for the 
substantial differences between the services in terms of regulatory 
oversight by the two bureaus.\32\
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    \30\ 47 U.S.C. 159(b)(1)(A).
    \31\ FY 2013 Report and Order, 28 FCC Rcd at 12357, para. 19. 
The Commission observed that the International Bureau was a 
``singular case'' because the work of those FTEs ``primarily 
benefits licensees regulated by other bureaus.'' Id., 28 FCC Rcd at 
12355, para. 14.
    \32\ FY 2016 Report and Order, 31 FCC Rcd at 10346-47, para. 22.

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[[Page 26022]]

    14. The Commission has 1,431 FTEs funded by regulatory fees, of 
which 424 are currently direct FTEs.\33\ Of these, 167 would be 
allocated to Wireline Competition Bureau regulatees, 141 would be 
allocated to Media Bureau regulatees, 92 would be allocated to Wireless 
Telecommunications Bureau regulatees, and 24 would be allocated to 
International Bureau regulatees.\34\ As explained below, we propose to 
reallocate 38 FTEs associated with Universal Service Fund work as 
indirect and to reallocate four FTEs that work on wireless numbering 
issues to the Wireless Telecommunications Bureau. As a result of this 
proposed reallocation, we project that we would collect approximately 
32.38 percent of regulatory fees (or $115.5 million) from Wireline 
Competition Bureau regulatees, 36.53 percent of regulatory fees (or 
$130.3 million) from Media Bureau regulatees, 24.87 percent of 
regulatory fees (or $88.7 million) from Wireless Telecommunications 
Bureau regulatees, and 6.22 percent of regulatory fees (or $22.2 
million) from International Bureau regulatees.
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    \33\ All numbers in this paragraph are for the current fiscal 
year (starting October 1, 2016) and exclude auction-funded FTEs.
    \34\ This includes space stations, earth stations, and submarine 
cable, terrestrial, and satellite international bearer circuits 
(IBCs).
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1. Reallocating FTEs Associated With the Universal Service Fund
    15. We believe that continuing changes to the USF regulatory 
landscape requires us to reexamine the appropriateness of treating 
Universal Service Fund FTEs as direct FTEs. To start, we estimate that 
there are approximately 51 FTEs in the Wireline Competition Bureau, 
including the bureau front office, devoted to the Universal Service 
Fund, with 13 of those FTEs devoted to the high-cost program. We also 
estimate that there are approximately 3 FTEs in the Wireless 
Telecommunications Bureau, including the bureau front office, devoted 
to implementing the Mobility Fund, a universal service high-cost 
support mechanism devoted exclusively to mobile services.\35\ We note 
that other FTEs throughout the Commission working on universal service 
issues are assigned as indirect FTEs. This includes the many FTEs 
working on universal service issues in the Enforcement Bureau, the 
Office of the Managing Director, the Office of the Inspector General, 
and the Office of the General Counsel.
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    \35\ See Connect America Fund, et al., Report and Order and 
Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663 (2011).
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    16. We propose to ``adjust[ ]'' the allocation of these direct FTEs 
``to take into account factors that are reasonably related to the 
benefits provided to the payer of the fee by the Commission's 
activities . . . '' \36\ Specifically, we propose to reallocate the 38 
FTEs associated with the non-high-cost programs of the Universal 
Service Fund as indirect. First, we note that contributions to the 
Universal Service Fund are not only required from Wireline Competition 
Bureau regulatees but every provider using any technology that has end-
user interstate telecommunications revenue is required to contribute to 
the Universal Service Fund.\37\ Second, we note that three of the 
distribution programs--E-Rate, Lifeline, and Rural Healthcare--tie 
funding eligibility to the beneficiary, whether it be a school, a 
library, a low-income individual or family, or a rural healthcare 
provider. None of these beneficiaries are Commission regulatees. Third, 
we note that wireless carriers now serve a substantial, if not 
majority, of Lifeline subscribers, and satellite operators, Wi-Fi 
network installers, and fiber builders may all receive funding through 
the E-Rate and Rural Healthcare programs. Fourth, we note that treating 
these FTEs as indirect would be more consistent with how FTEs working 
on universal service issues are treated elsewhere in the Commission. We 
seek comment on this proposal. We specifically seek comment on whether 
the statute requires us to impose regulatory fees on the regulatees of 
a single bureau even though the benefits provided by those FTEs accrue 
to regulatees of other bureaus as well as non-regulatees.
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    \36\ 47 U.S.C. 159(b)(1)(A).
    \37\ 47 CFR 54.706(a).
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    17. We also seek comment on alternatives. Although the high-cost 
program has historically been tied to Wireline Competition Bureau 
regulatees, the Commission's recent actions such as the adoption of the 
Mobility Fund Phase II and the Connect America Fund Phase II reverse 
auctions open eligibility to many other providers. Do these recent 
changes justify reallocating the 13 Wireline Competition Bureau FTEs 
and three Wireless Telecommunications Bureau FTEs as indirect? Or 
should any such reallocation await the full implementation of these 
reverse auctions? Alternatively, should some portion of the 38 FTEs 
that work on non-high-cost programs of the Universal Service Fund not 
be reallocated as indirect? If so, what portion?
    18. Commenters should provide legal and policy reasoning in support 
or opposition to the proposal and to the alternatives. We note that the 
Commission has said that it ``would be inconsistent with section 9 to 
delay reallocating . . . FTEs, where the reallocation is clearly 
warranted, while we engage in painstaking examinations of less clear 
and more factually complex situations in other bureaus.'' \38\ We seek 
comment on whether reallocation is clearly warranted here, and we ask 
commenters to address the impact any change in the allocation of FTEs 
will have on payors in other fee categories as well as the Commission's 
goal of ensuring that regulatory fees are administrable and 
sustainable.\39\
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    \38\ FY 2013 Report and Order, 28 FCC Rcd at 12357-58, paras. 19 
through 20.
    \39\ Id., 28 FCC Rcd at 12354, para 9.
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2. Reallocating FTEs Associated With Numbering
    19. We estimate that 7-8 FTEs in the Wireline Competition Bureau 
work on numbering issues. We propose to ``adjust[ ]'' the allocation of 
these direct FTEs ``to take into account factors that are reasonably 
related to the benefits provided to the payer of the fee by the 
Commission's activities . . . .'' \40\ Specifically, we estimate 
approximately half of the benefit of the work of these FTEs accrue to 
Wireless Telecommunications Bureau regulatees, who control 44.02 
percent of assigned numbers under the North American Numbering Plan 
\41\ and 73.01 percent of voice subscriptions.\42\ We therefore propose 
to reallocate four of the Wireline Competition Bureau FTEs that work on 
numbering issues to the Wireless Telecommunications Bureau as direct 
FTEs for regulatory fee purposes. We seek comment on this proposal. We 
specifically seek comment on whether the statute requires us to impose 
regulatory fees on the regulatees of a single bureau even though the 
benefits provided by those FTEs accrue to regulatees of another bureau.
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    \40\ 47 U.S.C. 159(b)(1)(A).
    \41\ Industry Analysis and Technology Division, Wireline 
Competition Bureau, FCC, Numbering Resource Utilization in the 
United States NRUF Data as of June 30, 2010 at 12 Table 1 (2013).
    \42\ Industry Analysis and Technology Division, Wireline 
Competition Bureau, FCC, Voice Telephone Services: Status as of 
December 31, 2015 at 2 Figure 1 (2016).
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    20. Commenters should provide legal and policy reasoning in support 
or opposition to the proposal, as well as whether the Commission should 
consider any alternatives. We note that the Commission has said that it 
``would

[[Page 26023]]

be inconsistent with section 9 to delay reallocating . . . FTEs, where 
the reallocation is clearly warranted, while we engage in painstaking 
examinations of less clear and more factually complex situations in 
other bureaus.'' \43\ We seek comment on whether reallocation is 
clearly warranted here, and we ask commenters to address the impact any 
change in the allocation of FTEs will have on payors in these two fee 
categories as well as the Commission's goal of ensuring that regulatory 
fees are administrable and sustainable.\44\
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    \43\ FY 2013 Report and Order, 28 FCC Rcd at 12357-58, paras. 19 
through 20.
    \44\ Id., 28 FCC Rcd at 12354, para 9.
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B. Direct Broadcast Satellite (DBS) Regulatory Fees

    21. The proposed fee schedule includes an updated regulatory fee 
for DBS, a subcategory in the cable television and IPTV category.\45\ 
In 2015, the Commission adopted an 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.\46\ At that time, the 
Commission committed to updating the regulatory fee rate for FY 2016, 
as necessary for ensuring an appropriate level of regulatory parity 
with cable television and IPTV and considering the Media Bureau 
resources dedicated to this subcategory.\47\ 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.'' \48\
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    \45\ DBS also pays a regulatory fee per operational station in 
geostationary orbit.
    \46\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2015, Report and Order and Further Notice of Proposed 
Rulemaking, 30 FCC Rcd 10268, 10276-77, paras. 19 through 20 (2015) 
(FY 2015 Report and Order).
    \47\ FY 2015 Report and Order, 30 FCC Rcd at 10277, para. 20.
    \48\ GAO Report at 12, available at https://www.gao.gov/products/GAO-12-686.
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    22. 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. The two DBS 
providers, AT&T and DISH Network, are multichannel video programming 
distributors (MVPDs).\49\ When the Commission adopted this regulatory 
fee subcategory, it recognized numerous recent regulatory developments 
increased Media Bureau FTE activity involving regulation and oversight 
of MVPDs, including DBS providers.\50\ During the FY 2016 regulatory 
fee proceeding, commenters representing the cable television industry 
observed 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.\51\ Recognizing this, in the FY 
2016 Report and Order, the Commission increased the regulatory fee for 
DBS providers to 24 cents, plus an across-the-board increase of three 
cents for the Commission's moving expenses, for a total of 27 cents per 
subscriber, per year.\52\ The increase was adopted in response to the 
increase in DBS oversight and regulation due to Media Bureau 
rulemakings regarding MVPD issues.\53\ Nevertheless, the FY 2016 fee of 
27 cents per subscriber adopted last year, increased from 12 cents, was 
still significantly below parity with the cable television/IPTV rate of 
$1.00 per year.\54\
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    \49\ MVPD is defined in section 602(13) of the Act, 47 U.S.C. 
522(13).
    \50\ FY 2015 NPRM, 30 FCC Rcd at 5367 through 68, para. 31. See, 
e.g., Video Description: Implementation of the Twenty-First Century 
Communications and Video Accessibility Act of 2010, Notice of 
Proposed Rulemaking, 31 FCC Rcd 2463 (2016); 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); Implementation of Section 103 of the 
STELA Reauthorization Act of 2014, Notice of Proposed Rulemaking, 30 
FCC Rcd 10327 (2015); Implementation of the Commercial 
Advertisement, Loudness Mitigation (CALM) Act, Report and Order, 26 
FCC Rcd 17222 (2011) (CALM Act Report and Order).
    \51\ American Cable Association (ACA) Comments at 3-11 (filed in 
MD Docket No. 16-166); National Cable & Telecommunications 
Association (NCTA) Reply Comments at 3-7 (filed in MD Docket No. 16-
166).
    \52\ FY 2016 Report and Order, 31 FCC Rcd at 10348 through 49, 
para. 26.
    \53\ Id., 31 FCC Rcd at 10348 through 49, para. 26. Commenters 
representing the cable industry continue to observe that ``[w]hile 
cable, IPTV, and DBS providers are not regulated identically, they 
offer similar multichannel video services, participate in the same 
proceedings at the same level in terms of the number of filings and 
meetings, and benefit in a similar fashion from Media Bureau 
regulation of MVPDs.'' See Letter from Barbara Esbin, Cinnamon 
Mueller, attorney for ACA, to Marlene H. Dortch, Secretary, Federal 
Communications Commission (Dec. 16, 2016) (ACA ex parte) at 1.
    \54\ 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.; National Cable 
Television Ass'n v. FCC, 554 F.2d 1094, 1105 (D.C. Cir. 1976).
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    23. Based on our updated analysis of the cable television/IPTV 
category, we find Media Bureau resources devoted to MVPD proceedings, 
including DBS,\55\ supports revising the DBS regulatory fee rate again. 
Specifically, we propose a regulatory fee rate of 36 cents per 
subscriber per year, plus two cents due to the increase in the 
Commission's budget for moving expenses, for a total of 38 cents per 
subscriber per year for FY 2017, as set forth in the proposed fee 
schedule in Table 4. This proposed incremental increase of 
approximately one cent per subscriber per month would result in 
bringing the DBS industry regulatory fees closer to those for cable 
television/IPTV. We seek comment on this proposal.
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    \55\ See, e.g., Expanding Consumers' Video Navigation Choices, 
Commercial Availability of Navigation Devices, Notice of Proposed 
Rulemaking and Memorandum Opinion and Order, 31 FCC Rcd 1544 (2016); 
Promoting the Availability of Diverse and Independent Sources of 
Video Programming, Notice of Inquiry, 31 FCC Rcd 1610 (2016); 
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); Amendment of 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).
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C. Broadcaster Regulatory Fees

    24. In the FY 2016 NPRM, the Commission proposed to include a 
higher population row in the table for AM and FM broadcasters,\56\ to 
standardize the incremental increase in fees,\57\ and to better assess 
fees based on the type and class of service.\58\ The Commission also 
proposed to adjust the television broadcasters table so that Top 10 
market stations paid approximately twice what stations in markets 26-50 
paid.\59\ In response to the FY 2016 NPRM, several commenters contended 
that the proposed regulatory fees were too burdensome for small 
independent stations.\60\ After reviewing the record, including the 
comments filed by the industry identifying the economic hardship faced 
by small independent radio stations, the Commission adopted a revised 
version of the proposed table and reduced the regulatory fees in the 
two lowest population tiers for AM and FM broadcasters from the rates

[[Page 26024]]

proposed in the FY 2016 Report and Order.\61\
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    \56\ FY 2016 NPRM, 31 FCC Rcd at 5762 through 63, para. 12. The 
Commission 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, para. 28.
    \57\ Id. Specifically, the Commission 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.
    \58\ Id.
    \59\ FY 2016 NPRM, 31 FCC Rcd at 5763 through 64, para. 13. The 
Commission 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 through 81, para. 29.
    \60\ FY 2016 Report and Order, 31 FCC Rcd at 10351, para. 32.
    \61\ Id., 31 FCC Rcd at 10351, para. 33.
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    25. We seek comment on further adjusting the regulatory fees for FY 
2017. The following chart proposes regulatory fees for AM and FM 
broadcasters, with revised ratios so that the difference between each 
tier is proportional. The second chart, for illustrative purposes, has 
the regulatory fees with the ratios used in the proposal for FY 2016. 
The second chart does not include the reduction for the two lowest 
tiers adopted in FY 2016. We seek comment on this proposal. Commenters 
should also discuss whether the regulatory fees should be reduced 
further for the AM and FM broadcasters in the two lowest tiers.

                                                 Table 1--Proposed FY 2017 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                Proposed FY 2017 radio station regulatory fees This uses the proposed ratios for FY 2017
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           FM Classes B,
                    Population served                     AM Class A ($)  AM Class B ($)  AM Class C ($)  AM Class D ($)   FM Classes A,  C, C0, C1 & C2
                                                                                                                            B1 & C3 ($)         ($)
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................          $1,050            $750            $650            $715          $1,150          $1,300
25,001-75,000...........................................           1,575           1,125             975           1,075           1,725           1,950
75,001-150,000..........................................           2,375           1,700           1,475           1,600           2,600           2,925
150,001-500,000.........................................           3,550           2,525           2,200           2,425           3,875           4,400
500,001-1,200,000.......................................           5,325           3,800           3,300           3,625           5,825           6,575
1,200,001-3,000,000.....................................           7,975           5,700           4,950           5,425           8,750           9,875
3,000,001-6,000,000.....................................          11,950           8,550           7,400           8,150          13,100          14,800
>6,000,000..............................................          17,950          12,825          11,100          12,225          19,650          22,225
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                         Table 2--FY 2017 Radio Station Regulatory Fees Based on FY 2016 Ratios
--------------------------------------------------------------------------------------------------------------------------------------------------------
                  FY 2017 Radio station regulatory fees, based on proposed FY 2016 fees This chart uses the proposed ratios in FY 2016
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           FM Classes B,
                    Population served                     AM Class A ($)  AM Class B ($)  AM Class C ($)  AM Class D ($)   FM Classes A,  C, C0, C1 & C2
                                                                                                                            B1 & C3 ($)         ($)
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................          $1,125            $825            $710            $780          $1,250          $1,425
25,001-75,000...........................................           1,700           1,250           1,075           1,175           1,875           2,150
75,001-150,000..........................................           2,250           1,650           1,425           1,550           2,500           2,850
150,001-500,000.........................................           3,375           2,475           2,125           2,350           3,750           4,275
500,001-1,200,000.......................................           5,625           4,125           3,550           3,900           6,250           7,125
1,200,001-3,000,000.....................................           8,450           6,200           5,325           5,850           9,375          10,700
3,000,001-6,000,000.....................................          11,250           8,250           7,100           7,800          12,500          14,250
>6,000,000..............................................          14,075          10,325           8,875           9,750          15,625          17,825
--------------------------------------------------------------------------------------------------------------------------------------------------------

D. Broadcast Television Satellites

    26. Broadcast television satellite stations pay a lower regulatory 
fee than standalone, full-service broadcast television stations, and 
are designated as such pursuant to note 5 to section 73.3555 of the 
Commission's rules.\62\ In 1995, the Commission made a permissive 
amendment to the regulatory fees schedule to permit television 
satellite stations that had received authorization to retransmit 
programming of the primary station to pay a fee separate from the fee 
for fully operational television stations. This amount is based upon 
the fee passed by the House of Representatives for television satellite 
stations for FY 1994.\63\ Other full-service television licensees 
remain subject to the regulatory fee payment required for the class of 
station and market. Of note, since 1995, we have consistently defined, 
and thereby limited, a television satellite station as one commonly 
owned, authorized under note 5 of section 73.3555 of the Commission's 
rules, and also shown as such in the Television and Cable Factbook. 
Periodically, the Television and Cable Factbook includes information 
concerning satellite status that is inconsistent with our records.
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    \62\ E.g., for FY 2016, satellite television was assessed 
$1,750, whereas digital broadcast UHF and VHF TV was assessed $5,000 
to $60,675, depending on the market size.
    \63\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 1995, Report and Order, 10 FCC Rcd 13512, 13534-35, para. 60 
(1995). See also Implementation of Section 9 of the Communications 
Act, Assessment and Collection of Regulatory Fees for the 1994 
Fiscal Year, Report and Order, 9 FCC Rcd 5333, para. 82 (1994) 
(``Section 9(g)'s fee schedule establishes specific fees for 
commercial television stations. These fees are to be assessed 
against a licensee solely on the basis of the market in which the 
station operates. The text of the schedule makes no distinction 
between commercial stations that are fully operational and those 
that are satellite stations.'').
---------------------------------------------------------------------------

    27. There is a standalone full-service station usually within the 
same market that serves as the ``parent'' to the satellite station that 
could not be commonly owned or controlled with the satellite, but for 
such a waiver. Section 76.55(e)(2) of the Commission's rules specifies 
that a commercial broadcast television station's market is its 
Designated Market Area (DMA), which reflects viewing patterns, as 
determined by Nielsen Media Research and published in its Nielsen 
Station Index Directory and Nielsen Station Index US Television 
Household Estimates or any successor publications.\64\ We are

[[Page 26025]]

unaware of the existence of any reliable published source that can 
identify which television stations are serving small markets at the 
fringe of larger DMA's.\65\ In a particular situation, the licensee of 
a broadcast television satellite station that is not carried by cable, 
satellite, or alternate methods, may have signal contours that cover 
the fringes of a DMA (generally, rural communities), whereas other 
full-service TV stations have greater over-the-air coverage of the DMA 
market. As a result, advertisers may devote more commercial spending to 
other full-service TV stations rather than to the more limited 
broadcast television satellite stations in the same DMA market. Such 
broadcast television satellite stations may originate their own 
programming, multicast their broadcasts, and with cable or satellite 
carriage, provide programming to the entire DMA market. For purposes of 
paying regulatory fees, the Commission identifies those stations that 
it deems to be broadcast satellite television stations based on 
Consolidated Data Base System (CDBS) and other Media Bureau data. 
However, some stations claim to operate as ``satellites,'' and pay a 
lower regulatory fee ($1,750 in FY 2016), although they have not been 
officially granted satellite status by the Commission. Because 
satellite status may be derived only as a result of Commission action, 
only stations granted such status by the Commission may pay the 
satellite television regulatory fee; other stations that claim such 
status must pay the fee for a full-service station. Attached in 
Appendix E is a list of the bona fide licensed broadcast satellite 
television stations, according to the Media Bureau records. This list 
is generated from the Commission's CDBS and other information provided 
to the Media Bureau. We invite comment on the accuracy of this list.
---------------------------------------------------------------------------

    \64\ 47 CFR 76.55(e)(2); Assessment and Collection of Regulatory 
Fees for Fiscal Year 2000, Report and Order, 15 FCC Rcd 14478, 
14492, para. 34 (2000) (FY 2000 Report and Order) (``Fees for 
television stations are based on market size as determined by 
Nielsen. This is the only consistent source the Commission has for 
determining which market a station serves.''). See also Amendment to 
the Commission's Rules Concerning Market Modification, 30 FCC Rcd 
10406, para. 6, n. 19 (2015) (``The Nielsen Company delineates 
television markets by assigning each U.S. county (except for certain 
counties in Alaska) to one market based on measured viewing patterns 
both off-air and via MVPD distribution.''); Designated Market Areas: 
Report to Congress, 31 FCC Rcd 5463, 5465 through 66, para. 6 
(2015).
    \65\ FY 2000 Report and Order, 15 FCC Rcd 14478, 14492, para. 34 
(Commission rejected commenter's ``argu[ment] that small television 
stations located near large designated market areas (DMA) are 
assessed disproportionately high fees because the A.C. Nielsen 
ratings include them in the DMA but they do not serve households in 
the DMA. Fees for television stations are based on market size as 
determined by Nielsen. This is the only consistent source the 
Commission has for determining which market a station serves.'').
---------------------------------------------------------------------------

    28. Recognizing that the Commission permitted a lesser fee for 
television satellite stations, we seek comment on whether we should 
increase the regulatory fees for broadcast satellite television 
stations to ensure that all television broadcasters are paying an 
appropriate regulatory fee based on Media Bureau FTE oversight and 
regulation. The circumstances that existed in 1994 when the Commission 
explained that it would permit consideration of a reduced fee in very 
limited circumstances have changed.\66\ As it relates to television 
satellite stations, should the satellite regulatory fee be increased to 
a higher percentage of standalone full-service broadcast television 
stations for ``remaining markets''? In particular, we seek comment on 
whether the fee for broadcast television satellite stations should be 
increased to 50 or 75 percent of the regulatory fee for remaining 
markets for FY 2017 applicable if the station were not a broadcast 
satellite station, but a full-service standalone broadcast station. 
Commenters supporting an increase in the broadcast satellite television 
fee should explain why the fee should be closer to the regular 
standalone full-service broadcast television fee.
---------------------------------------------------------------------------

    \66\ See Implementation of section 9 of the Communications Act 
and Assessment and Collection of Regulatory Fees of the 1994 Fiscal 
Year, Memorandum Opinion and Order, 10 FCC Rcd 12759, 12763, para. 
21 (1995) (Applicants considered for relief ``were generally UHF 
stations . . . lack[ing] network affiliations . . . located outside 
of the principal city's metropolitan area and do not provide a Grade 
B signal to a substantial portion of the market's metropolitan 
areas. Often these stations are not carried by cable systems serving 
the principal metropolitan areas.''); Assessment and Collection of 
Regulatory Fees for Fiscal Year 1996, Report and Order, 11 FCC Rcd 
18774, 18786, para. 32 (1966) (``We . . .rely on Nielsen's DMA 
market rankings . . . Nielsen data is generally accepted throughout 
the industry and will be updated and published annually . . . We 
will consider the equities concerning the fees of licensees that 
change markets on a case-by-case basis, upon request, and, where a 
licensee demonstrates that it does not serve its assigned market, we 
will consider reducing the assigned fees to a more equitable level, 
based upon the area actually served by the licensee.'').
---------------------------------------------------------------------------

E. International Bearer Circuits

    29. Historically, regulatory fees for international bearer circuits 
(IBCs) have been paid by facilities-based common carriers based on the 
number of active international bearer circuits they have in a 
transmission facility used to provide service to specified types of 
entities--specifically, by facilities-based common carriers that have 
active international bearer circuits in any transmission facility for 
the provision of service to an end user or resale carrier, which 
includes active circuits to themselves or to their affiliates.\67\ In 
2009, the Commission revised this methodology by allocating submarine 
IBC costs among service providers in an equitable and competitively 
neutral manner, without distinguishing between common carriers and non-
common carriers, and assessing a flat per cable landing license fee for 
all submarine cable systems.\68\ It nonetheless declined to simplify 
terrestrial and satellite IBCs at that time because of the ``complexity 
of the legal, policy and equity issues involved.'' \69\ In the FY 2016 
NPRM, the Commission revisited the disparate treatment of terrestrial 
and satellite IBCs vis-[agrave]-vis submarine IBCs,\70\ but decided in 
the FY 2016 Report and Order, that the record was insufficient to 
change the fee methodology at that time.\71\
---------------------------------------------------------------------------

    \67\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, Second Report and Order, 24 FCC Rcd 4208, 4211, para. 4 
(2009) (Subcable Order).
    \68\ Subcable Order, 24 FCC Rcd at 4214-16, paras. 13-17.
    \69\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2009, Report and Order, 24 FCC Rcd 10301, 10306 through 07, 
paras. 16 through 17 (2009).
    \70\ FY 2016 NPRM, 31 FCC Rcd at 5764 through 65, paras. 15 
through 16.
    \71\ FY 2016 Report and Order, 31 FCC Rcd at 10343, para. 11.
---------------------------------------------------------------------------

    30. The international services marketplace has continued to evolve 
and we seek comment on how to update and improve our regulatory fee 
assessment for terrestrial and satellite IBCs to reflect these 
changes.\72\ We seek comment on how to make our fee assessment more 
efficient, equitable, and less burdensome. In particular, we seek 
comment on adopting a flat, per-provider fee similar to how we treat 
submarine cable regulatory fees, with a tiered regulatory fee 
methodology for terrestrial IBCs based on capacity. Similar to the 
regulatory fee treatment of submarine cable IBCs, under this

[[Page 26026]]

proposal, terrestrial and satellite IBCs would be treated the same 
regardless of whether they are offered on a common-carrier or non-
common-carrier basis. We seek comment on this proposal and how to 
divide the terrestrial IBCs into categories based on capacity.
---------------------------------------------------------------------------

    \72\ The Commission has a pending proceeding that seeks comment 
on the federal need for the international services reporting 
requirements set forth in section 43.62 of the Commission's rules. 
Section 43.62 Reporting Requirements for U.S. Providers of 
International Services; 2016 Biennial Review of Telecommunications 
Regulations, IB Docket Nos. 16 through 131 and 17 through 55, Notice 
of Proposed Rulemaking, 32 FCC Rcd 2606 (2017). Relevant to this 
proceeding, the Commission seeks comment on whether there are ways 
to further streamline the Circuit Capacity Reports, which require 
providers of international telecommunications services to file 
annual reports identifying the submarine cable, satellite, and 
terrestrial capacity between the United States and foreign points. 
As noted below, we rely on the reporting requirements for 
terrestrial, satellite, and submarine cable capacity data to 
administer the annual regulatory fees established in section 9 of 
the Act. See infra at Appendix C; see 47 CFR 43.62(a)(1).
---------------------------------------------------------------------------

    31. Level 3 states that non-common carrier terrestrial IBCs should 
not be exempt from regulatory fees, as it finds the practice to be 
administratively burdensome, not equitable or competitively neutral, 
and a disincentive to compliance with the Commission's regulatory fee 
rules.\73\ Level 3, for example, states that it ``spends dozens of 
person hours each year polling multiple systems to identify 
international terrestrial facilities in service, generating reports of 
the circuits that have been sold over those facilities, and identifying 
whether any of the circuits were sold on a non-common carrier basis.'' 
\74\ Level 3 asserts that the disparate treatment of common carrier and 
non-common carrier circuits is neither equitable nor competitively 
neutral as ``[p]roviders that offer international terrestrial service 
on a common carrier basis are at a significant disadvantage vis a vis 
providers that characterize their service as non-common carrier.'' \75\ 
Level 3 states that ``[c]arriers currently have a strong incentive to 
characterize circuits as non-common carrier circuits in order to reduce 
their regulatory fee burden.'' \76\ According to Level 3, a flat fee 
will improve compliance with the Commission's regulatory fee 
requirements \77\ and ``a flat-fee system will remove incentives for 
providers to not deploy terrestrial IBCs, or to sell international 
capacity over submarine cable systems instead of terrestrial IBCs.'' 
\78\ We seek comment on these arguments and whether we should harmonize 
the regulatory treatment of common carrier and non-common carrier 
terrestrial circuits.
---------------------------------------------------------------------------

    \73\ Level 3 Comments, MD Docket No. 16-166, at 5.
    \74\ Id. at 5.
    \75\ Id. at 6 (stating that ``the fact that non-common carrier 
circuits are `unregulated' is not relevant to the Commission's 
authority to collect regulatory fees on those circuits. All 
terrestrial IBCs are `telecommunications' subject to the 
Commissions' jurisdiction, and benefit from the Commissions' 
`international activities,' including cross-border coordination with 
Canada and Mexico'').
    \76\ Id. at 5.
    \77\ Id. at 5.
    \78\ Id. at 4.
---------------------------------------------------------------------------

    32. We also seek comment on whether we should make changes to the 
IBC fees for satellite circuits. The number of satellite IBCs are 
relatively small as compared to terrestrial IBCs.\79\ We also note that 
in addition to being assessed regulatory fees on their common carrier 
and non-common carrier circuits, earth station, geostationary orbit 
space station, and non-geostationary orbit space station licensees pay 
separate regulatory fees for their facilities that are licensed and 
operational.\80\ We seek comment on whether there is a basis to 
eliminate the IBC regulatory fee for satellite providers of 
international communications. If we retain the IBC regulatory fees for 
satellite circuits, should we adopt the methodology discussed herein 
for assessing the number of active circuits (either only assessing fees 
on systems active as of December 31 of the prior year, or assessing 
fees on IBCs that were active at any point during the preceding 
calendar year)? If we adopt the proposal for a flat-fee methodology, 
should we apply it to satellite circuits as well as terrestrial 
circuits? Are there any other steps we should take to harmonize our 
regulatory fee treatment of terrestrial and satellite IBCs?
---------------------------------------------------------------------------

    \79\ For example, for data as of December 31, 2014, there were a 
total of 21,911,703 circuit units (64 kbps) with terrestrial 
circuits accounting for 99.63 percent (21,830,546) while satellite 
accounted for only 0.37 percent (81,157). FCC, International Bureau, 
2014 U.S. International Circuit Capacity Report at 3 (IB 2016), 
https://apps.fcc.gov/edocs_public/attachmatch/DOC-337257A2.pdf.
    \80\ See infra para. 39; FY 2016 Report and Order, 31 FCC Rcd at 
10356, para. 42.
---------------------------------------------------------------------------

    33. We also seek comment on whether we should continue to assess 
regulatory fees based on IBCs that were active as of December 31 of the 
prior year.\81\ Commenters should discuss whether instead we should 
assess regulatory fees based on IBCs that were active at any point 
during the preceding calendar year.\82\
---------------------------------------------------------------------------

    \81\ 47 CFR 43.62(a)(1); see infra at para. 30.
    \82\ We recognize that this could require modification of 
section 43.62(a)(1) of our rules and any successor rules. 47 CFR 
43.62(a)(1).
---------------------------------------------------------------------------

    34. Finally, we tentatively conclude that adding non-common carrier 
international bearer circuits to the regulatory fee schedule would be a 
permitted amendment as defined in section 9(b)(3) of the Act,\83\ and 
pursuant to section 9(b)(4)(B) must be submitted to Congress at least 
90 days before it would become effective.\84\
---------------------------------------------------------------------------

    \83\ 47 U.S.C. 159(b)(3).
    \84\ 47 U.S.C. 159(b)(4)(B).
---------------------------------------------------------------------------

F. Revising the De Minimis Threshold and Eliminating Regulatory Fee 
Categories

    35. Under the Commission's current de minimis rule for regulatory 
fee payments, a regulatee is exempt from paying regulatory fees if the 
sum total of all of its regulatory fee liabilities for annual 
regulatory fees is $500 or less for the fiscal year.\85\ The Commission 
increased the de minimis threshold from $10 to $500 in the FY 2014 
Report and Order.\86\ The higher threshold reflected the estimated 
costs of collecting an unpaid regulatory fee, i.e., at least $350 in 
direct costs, and the benefits to these entities of a higher de minimis 
threshold. The Commission's estimate of approximately $350 excluded 
overhead or other costs involved in regulatory fee collection.\87\ In 
addition, the Commission observed that setting the de minimis threshold 
at $500 was unlikely to reduce fee collections to an amount below the 
full amount of the Commission's annual appropriation.\88\
---------------------------------------------------------------------------

    \85\ FY 2014 Report and Order, 29 FCC Rcd at 10774-76, paras. 18 
through 21.
    \86\ Id.
    \87\ Id., 29 FCC Rcd at 10775, para. 20 & n. 62.
    \88\ Id.
---------------------------------------------------------------------------

    36. In the FY 2014 regulatory fee proceeding, commenters argued the 
threshold should be increased to $750 or $1,000.\89\ For example, ACA 
suggested that the Commission adopt a threshold of 1000 or fewer 
subscribers for cable operators and the National Association of 
Broadcasters (NAB) argued that the Commission should adopt a de minimis 
threshold of $750 or $1,000 in order to provide relief for smaller 
entities.\90\ These commenters explained that a higher de minimis 
threshold may contribute to the difference between a small operator 
staying in business or closing operations.\91\ NAB also observed that a 
higher de minimis threshold would allow stations in smaller markets to 
devote more resources to improved programming and signal quality.\92\ 
The Commission adopted a new threshold of $500 for annual regulatory 
fee and committed to further monitor the de minimis threshold and 
consider whether to increase the threshold or revise on some other 
basis.\93\
---------------------------------------------------------------------------

    \89\ Id.
    \90\ Id.
    \91\ Id., 29 FCC Rcd at 10774 through 75, para. 19.
    \92\ Id.
    \93\ Id., 29 FCC Rcd at 10775, para. 20.
---------------------------------------------------------------------------

    37. Consistent with this commitment, we seek comment on increasing 
the de minimis threshold to $1,000 to improve the cost effectiveness of 
the Commission's collection of regulatory fees and to provide 
regulatory fee relief to smaller entities, particularly those that have 
little Commission regulation or oversight.\94\ As we explained in the

[[Page 26027]]

FY 2014 Report and Order, smaller entities with limited funds are less 
likely to be able to budget for regulatory fees on a timely basis and 
therefore may incur late fees and consequently use more Commission 
resources for fee collection.\95\ The administrative burden on small 
regulatees, and the Commission's operational costs associated with 
processing and collecting these smaller fees, likely outweigh the 
benefits of such payments. For example, payors between $500 and $1,000 
account for less than one percent of all regulatory fee payments. In 
addition, the cost of researching, creating, and sending a bill to a 
non-payer, and completing all follow-up discussion and correspondence, 
totals more than $350. Added to this cost is the overhead and the costs 
of administering the regulatory fee program.\96\ We seek comment on 
whether it makes sense to incur upwards of $350 in administrative costs 
to collect not even that much in regulatory fees that can offset the 
costs fees paid by other regulatees (as is the case for regulatees that 
owe $501 to $700). We seek comment on whether a $1,000 threshold is 
high enough to ensure that the regulatory fees collected from any 
regulatee substantially exceed the costs of collection. We invite 
comment whether the cost of collections and burden on small entities 
outweigh the associated regulatory fee payments.
---------------------------------------------------------------------------

    \94\ Id. (observing that many small entities ``are subject to 
little Commission oversight and regulation which serves to further 
exacerbate this inequity [of the administrative burden].'').
    \95\ Id.
    \96\ Id.
---------------------------------------------------------------------------

    38. We also seek comment on whether we should include multi-year 
wireless licenses in the de minimis threshold. If we adopt a de minimis 
threshold for multi-year wireless licensees, should the threshold be 
fee-based, or should it be determined by the number of licenses, 
frequencies, or paths the licensee holds? We recognize that some 
entities hold many multi-year licenses and the licenses can be renewed 
at different times of the year. Commenters should discuss whether 
including multi-year licenses in the de minimis threshold would be too 
administratively burdensome. We also seek comment on whether we should 
adopt a de minimis threshold based on number of cable television 
subscribers, as suggested by ACA.\97\
---------------------------------------------------------------------------

    \97\ ACA observes that ``exempting cable/IPTV providers serving 
fewer than 1,000 subscribers from the Cable/IPTV fee category would 
be consistent with other exemptions the Commission has created for 
these operators, and would serve similar purposes.'' ACA ex parte at 
4. ACA suggests a progressive fee structure, with the level of rates 
gradually increasing based on the number of subscribers. Id. at 5 
through 6.
---------------------------------------------------------------------------

    39. In addition, we seek comment on eliminating regulatory fee 
categories, such as CMRS Messaging (Paging).\98\ This category accounts 
for a very small amount of regulatory fees; we seek comment on the 
benefits of discontinuing such collections. Commenters should discuss 
other changes to the regulatory fee framework that would facilitate the 
goal of ensuring that regulatory fees are administrable and 
sustainable. For example, are there categories of regulatory fee payors 
that now have very little Commission oversight or regulation, apart 
from the application fee process? We seek comment on whether there are 
regulatory fees adopted for some categories in the past where now there 
is a clear case to conclude that the fee is no longer ``reasonably 
related to the benefits provided to the payer of the fee by the 
Commission's activities . . . .'' \99\
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    \98\ The Commission has sought comment on this issue previously. 
See Assessment and Collection of Regulatory Fees for Fiscal Year 
2014, Notice of Proposed Rulemaking, 29 FCC Rcd 6417, 6429, para. 32 
(2014) (FY 2014 NPRM).
    \99\ 47 U.S.C. 159(b)(1)(A). We note, however, that the 
Communications Act provides for ``waiver, reduction, and deferment'' 
of a regulatory fee in any specific instance for good cause shown, 
where such action would promote the public interest. As a result, 
commenters should not focus suggestions on the merits of individual 
regulatory fee payors but rather improvements to the system that are 
consistent with Congressional directive contained in section 9 of 
the Communications Act.
---------------------------------------------------------------------------

    40. We tentatively conclude that eliminating categories from our 
regulatory fee schedule would be a permitted amendment as defined in 
section 9(b)(3) of the Act,\100\ and pursuant to section 9(b)(4)(B) 
must be submitted to Congress at least 90 days before it would become 
effective.\101\
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    \100\ 47 U.S.C. 159(b)(3).
    \101\ 47 U.S.C. 159(b)(4)(B).
---------------------------------------------------------------------------

G. Other Reforms

    41. We also seek comment on ways to further improve our regulatory 
fee process to make it less burdensome for all entities. In particular, 
we seek comment on ways we can communicate better with smaller 
regulatees, such as mass emails (instead of through the U.S. Postal 
Service), and if we should therefore require a current email address 
for all regulatory fee payors.

V. Procedural Matters

A. Payment of Regulatory Fees

1. Checks Will Not Be Accepted for Payment of Annual Regulatory Fees
    42. Pursuant to an Office of Management and Budget (OMB) 
directive,\102\ the Commission is moving towards a paperless 
environment, extending to disbursement and collection of select federal 
government payments and receipts.\103\ In 2015, the Commission stopped 
accepting checks (including cashier's checks and money orders) and the 
accompanying hardcopy forms (e.g., Forms 159, 159-B, 159-E, 159-W) for 
the payment of regulatory fees.\104\ All regulatory fee payments must 
be made by online Automated Clearing House (ACH) payment, online credit 
card, or wire transfer. Any other form of payment (e.g., checks, 
cashier's checks, or money orders) will be rejected. For payments by 
wire, a Form 159-E should still be transmitted via fax so that the 
Commission can associate the wire payment with the correct regulatory 
fee information.
---------------------------------------------------------------------------

    \102\ 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.
    \103\ See U.S. Department of the Treasury, Open Government Plan 
2.1, September 2012.
    \104\ FY 2015 Report and Order, 30 FCC Rcd at 10282 through 83, 
para. 35. See 47 CFR 1.1158.
---------------------------------------------------------------------------

2. Credit Card Transaction Levels
    43. 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 is 
$24,999.99.\105\ 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 
2017 regulatory fee collection in Fact Sheets, available at https://www.fcc.gov/regfees.
---------------------------------------------------------------------------

    \105\ 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. De Minimis Regulatory Fees
    44. Under the Commission's present de minimis rule for regulatory 
fee

[[Page 26028]]

payments, a regulatee is exempt from paying regulatory fees if the sum 
total of all of its annual regulatory fee liabilities is $500 or less 
for the fiscal year. The de minimis threshold applies only to filers of 
annual regulatory fees (not regulatory fees paid through multi-year 
filings), and it is not a permanent exemption. Each regulatee will need 
to reevaluate the total annual fee liability each fiscal year to 
determine whether they meet the de minimis exemption. This de minimis 
threshold could change as a result of this Notice of Proposed 
Rulemaking.
4. 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, 2016 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, 2016.
     Wireline (Common Carrier) Services: Regulatory fees must 
be paid for authorizations that were granted on or before October 1, 
2016. In instances where a permit or license is transferred or assigned 
after October 1, 2016, 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.\106\ For Responsible 
Organizations (RespOrgs) that manage Toll Free Numbers (TFN), 
regulatory fees should be paid on all working, assigned, and reserved 
toll free numbers as well as toll free numbers in any other status as 
defined in section 52.103 of the Commission's rules.\107\ The unit 
count should be based on toll free numbers managed by RespOrgs on or 
about December 31, 2016.
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    \106\ Audio bridging services are toll teleconferencing 
services.
    \107\ 47 CFR 52.103.
---------------------------------------------------------------------------

     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, 2016. The number of subscribers, units, 
or telephone numbers on December 31, 2016 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, 2016, 
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 to 
publicize our estimates of the number of ``small multi-year wireless'' 
licenses that will be renewed or newly obtained in FY 2017.
     Multichannel Video Programming Distributor Services (cable 
television operators, CARS licensees, DBS, and IPTV): Regulatory fees 
must be paid for the number of basic cable television subscribers as of 
December 31, 2016.\108\ Regulatory fees also must be paid for CARS 
licenses that were granted on or before October 1, 2016. In instances 
where a permit or license is transferred or assigned after October 1, 
2016, responsibility for payment rests with the holder of the permit or 
license as of the fee due date. For providers of Direct Broadcast 
Satellite (DBS) service and IPTV-based MVPDs, regulatory fees should be 
paid based on a subscriber count on or about December 31, 2016. In 
instances where a permit or license is transferred or assigned after 
October 1, 2016, responsibility for payment rests with the holder of 
the permit or license as of the fee due date.
---------------------------------------------------------------------------

    \108\ 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 2016, rather than on a count as of December 31, 
2016.
---------------------------------------------------------------------------

     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, 2016. In instances where a permit 
or license is transferred or assigned after October 1, 2016, 
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, 2016. In instances where a license is transferred or assigned after 
October 1, 2016, responsibility for payment rests with the holder of 
the license as of the fee due date. For regulatory fee purposes, the 
allocation in FY 2017 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 IBCs are to be 
paid by facilities-based common carriers that have active (used or 
leased) international bearer circuits as of December 31, 2016 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, 2016. Whether circuits are used 
specifically for voice or data is not relevant for purposes of 
determining that they are active circuits.\109\ In instances where a 
permit or license is transferred or assigned after October 1, 2016, 
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 2017 will remain at 87.6 percent for submarine cable 
and 12.4 percent for satellite/terrestrial facilities.\110\
---------------------------------------------------------------------------

    \109\ We encourage terrestrial and satellite service providers 
to seek guidance from the International Bureau's Telecommunications 
and Analysis Division to verify their particular IBC reporting 
processes to ensure that their calculation methods comply with our 
rules.
    \110\ 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) 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'').\111\ This

[[Page 26029]]

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).
---------------------------------------------------------------------------

    \111\ See Assessment and Collection of Regulatory Fees for 
Fiscal Year 2005, Report and Order and Order on Reconsideration, 20 
FCC Rcd 12259, 12264, paras. 38 through 44 (2005).
---------------------------------------------------------------------------

    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.\112\ 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.
---------------------------------------------------------------------------

    \112\ 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, 2016), 
and submit their fee payment accordingly. Whether a carrier reviews its 
telephone number counts in Fee Filer or not, the Commission reserves 
the right to audit the number of telephone numbers for which regulatory 
fees are paid. In the event that the Commission determines that the 
number of telephone numbers that are paid is inaccurate, the Commission 
will bill the carrier for the difference between what was paid and what 
should have been paid.

VI. Additional Tables

                                         Table 3--Calculation of FY 2017 Revenue Requirements and Pro-Rata Fees
 [Regulatory fees in the first seven fee categories 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      Pro-Rated FY     Computed FY
               Fee Category                  FY 2017 Payment     Years        Revenue      2017 Revenue        2017         Rounded  FY    Expected  FY
                                                  units                      estimate       requirement   Regulatory fee  2017  reg. fee   2017  revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use).....................              1,300         10         625,000         326,950              25              25         325,000
PLMRS (Shared use)........................             16,000         10       3,110,000       1,609,600              10              10       1,600,000
Microwave.................................             11,800         10       3,125,000       2,967,700              25              25       2,950,000
Marine (Ship).............................              8,100         10       1,035,000       1,222,290              15              15       1,215,000
Aviation (Aircraft).......................              4,200         10         470,000         422,520              10              10         420,000
Marine (Coast)............................                150         10         192,500          60,360              40              40          60,000
Aviation (Ground).........................              1,100         10         220,000         221,329              20              20         220,000
AM Class A \4\............................                 65          1         313,500         307,333           4,728           4,725         307,125
AM Class B \4\............................              1,523          1       3,875,875       3,830,345           2,515           2,525       3,845,575
AM Class C \4\............................                870          1       1,400,175       1,356,591           1,559           1,550       1,348,500
AM Class D \4\............................              1,492          1       4,587,900       4,502,856           3,018           3,025       4,513,300
FM Classes A, B1 & C3 \4\.................              3,150          1       9,678,200       9,427,478           2,993           3,000       9,450,000
FM Classes B, C, C0, C1 & C2 \4\..........              3,114          1      11,849,725      11,590,931           3,722           3,725      11,599,650
AM Construction Permits \1\...............                 10          1           9,300           6,500             650             650           6,500
FM Construction Permits\1\................                113          1         192,425         129,950           1,150           1,150         129,950
Satellite TV..............................                126          1         224,000         218,654           1,735           1,725         217,350
Digital TV Markets 1-10...................                139          1       8,433,825       8,355,082          60,109          60,100       8,353,900
Digital TV Markets 11-25..................                131          1       6,348,825       5,933,665          45,295          45,300       5,934,300
Digital TV Markets 26-50..................                181          1       5,525,025       5,471,684          30,230          30,225       5,470,725
Digital TV Markets 51-100.................                285          1       4,301,600       4,314,986          15,140          15,150       4,317,750
Digital TV Remaining Markets..............                367          1       1,825,000       1,818,320           4,955           4,950       1,816,650
Digital TV Construction Permits \1\.......                  3          1          15,000          14,864           4,955           4,950          14,850
LPTV/Translators/Boosters/Class A TV......              4,051          1       1,785,420       1,752,382             433             435       1,762,185
CARS Stations.............................                230          1         220,875         216,340             941             940         216,200
Cable TV Systems, including IPTV..........         62,000,000          1      64,200,000      59,253,400           .9557             .96      59,520,000
Direct Broadcast Satellite (DBS)..........         32,500,000          1       9,180,000      12,424,100             .38             .38      12,350,000
Interstate Telecommunication Service           37,300,000,000          1     142,722,000     112,571,400        0.003018         0.00302     112,646,000
 Providers................................
Toll Free Numbers.........................         32,700,000          1       4,745,000       3,947,544          0.1207            0.12       3,924,000

[[Page 26030]]

 
CMRS Mobile Services (Cellular/Public             385,000,000          1      73,200,000      81,336,108           0.211            0.21      80,850,000
 Mobile)..................................
CMRS Messag. Services.....................          2,100,000          1         184,000         168,000          0.0800           0.080         168,000
BRS \2\...................................                870          1         645,250         561,398             805             805         700,350
LMDS......................................                395          1         286,375         456,976             805             805         317,975
Per 64 kbps Int'l Bearer Circuits                  26,500,000          1         638,000         791,219           .0299             .03         795,000
 Terrestrial (Common) & Satellite (Common
 & Non-Common)............................
Submarine Cable Providers (see chart in                 41.19          1       5,486,242       5,589,583         135,709         135,700       5,589,212
 Appendix C) \3\..........................
Earth Stations............................              3,400          1       1,173,000       1,228,896             361             360       1,224,000
Space Stations (Geostationary)............                 95          1      13,155,125      13,725,182         144,476         144,475      13,725,125
Space Stations (Non-Geostationary)........                  6          1         911,700         951,190         158,532         158,525         951,150
                                           -------------------------------------------------------------------------------------------------------------
    ****** Total Estimated Revenue to be    .................  .........     384,890,362     359,083,693  ..............  ..............     358,855,322
     Collected............................
                                           -------------------------------------------------------------------------------------------------------------
        ****** Total Revenue Requirement..  .................  .........     384,012,497     356,710,992  ..............  ..............     356,710,992
                                           -------------------------------------------------------------------------------------------------------------
            Difference....................  .................  .........         877,865       2,372,701  ..............  ..............       2,144,330
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table 3
\1\ The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set the regulatory
  fee to an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction Permit revenues,
  and in the AM and FM Construction Permit revenues, were offset by increases in the revenue totals for Digital television stations by market size, and
  in the AM and FM radio stations by class size and population served, respectively.
\2\ MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate
  the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands, Report & Order
  and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, para. 6 (2004).
\3\ The chart at the end of Table 4 lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from
  the adoption of the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, 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 2017 Regulatory Fee'' constitute a weighted average broadcast regulatory fee by class
  of service. The actual FY 2017 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4.


                    Table 4--Proposed Regulatory Fees
 Regulatory fees in the first eight fee categories are collected by the
Commission in advance to cover the term of the license and are submitted
                  at the time the application is filed.
------------------------------------------------------------------------
                                                             Annual
                     Fee category                        regulatory fee
                                                           (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).                 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                     .21
 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                     805
 license) (47 CFR part 27)...........................
Local Multipoint Distribution Service (per call sign)                805
 (47 CFR, part 101)..................................
AM Radio Construction Permits........................                650
FM Radio Construction Permits........................              1,150
Digital TV (47 CFR part 73) VHF and UHF Commercial...  .................
    Markets 1-10.....................................             60,100

[[Page 26031]]

 
    Markets 11-25....................................             45,300
    Markets 26-50....................................             30,225
    Markets 51-100...................................             15,150
    Remaining Markets................................              4,950
    Construction Permits.............................              4,950
Satellite Television Stations (All Markets)..........              1,725
Low Power TV, Class A TV, TV/FM Translators &                        435
 Boosters (47 CFR part 74)...........................
CARS (47 CFR part 78)................................                940
Cable Television Systems (per subscriber) (47 CFR                    .96
 part 76), Including IPTV............................
Direct Broadcast Service (DBS) (per subscriber) (as                  .38
 defined by section 602(13) of the Act)..............
Interstate Telecommunication Service Providers (per               .00302
 revenue dollar).....................................
Toll Free (per toll free subscriber) (47 CFR section                 .12
 52.101 (f) of the rules)............................
Earth Stations (47 CFR part 25)......................                360
Space Stations (per operational station in                       144,475
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100)................................................
Space Stations (per operational system in non-                   158,525
 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 2017 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................................................           1,050             750             650             715           1,150           1,300
25,001-75,000...........................................           1,575           1,125             975           1,075           1,725           1,950
75,001-150,000..........................................           2,375           1,700           1,475           1,600           2,600           2,925
150,001-500,000.........................................           3,550           2,525           2,200           2,425           3,875           4,400
500,001-1,200,000.......................................           5,325           3,800           3,300           3,625           5,825           6,575
1,200,001-3,000,00......................................           7,975           5,700           4,950           5,425           8,750           9,875
3,000,001-6,000,00......................................          11,950           8,550           7,400           8,150          13,100          14,800
>6,000,000..............................................          17,950          12,825          11,100          12,225          19,650          22,225
--------------------------------------------------------------------------------------------------------------------------------------------------------


             International Bearer Circuits--Submarine Cable
------------------------------------------------------------------------
  Submarine cable systems (capacity as of December 31,      Fee amount
                          2016)                                 ($)
------------------------------------------------------------------------
<2.5 Gbps...............................................           8,475
2.5 Gbps or greater, but less than 5 Gbps...............          16,975
5 Gbps or greater, but less than 10 Gbps................          33,925
10 Gbps or greater, but less than 20 Gbps...............          67,850
20 Gbps or greater......................................         135,700
------------------------------------------------------------------------

 Sources of Payment Unit Estimates for FY 2017
    In order to calculate individual service fees for FY 2017, we 
adjusted FY 2016 payment units for each service to more accurately 
reflect expected FY 2017 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 2017 estimates with actual FY 2016 
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 2017 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 2017 payment units are based on FY 2016 
actual payment units, it does not necessarily mean that our FY 2017 
projection is exactly the same number as in FY 2016. We have either 
rounded the FY 2017 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.

[[Page 26032]]

 
CMRS Cellular/Mobile Services  Based on WTB projection reports, and FY
                                16 payment data.
CMRS Messaging Services......  Based on WTB reports, and FY 16 payment
                                data.
AM/FM Radio Stations.........  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2016 payment
                                units.
Digital TV Stations (Combined  Based on CDBS data, adjusted for
 VHF/UHF units).                exemptions, and actual FY 2016 payment
                                units.
AM/FM/TV Construction Permits  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2016 payment
                                units.
LPTV, Translators and          Based on CDBS data, adjusted for
 Boosters, Class A Television.  exemptions, and actual FY 2016 payment
                                units.
BRS (formerly MDS/MMDS) LMDS.  Based on WTB reports and actual FY 2016
                                payment units. Based on WTB reports and
                                actual FY 2016 payment units.
Cable Television Relay         Based on data from Media Bureau's COALS
 Service (CARS) Stations.       database and actual FY 2016 payment
                                units.
Cable Television System        Based on publicly available data sources
 Subscribers, Including IPTV    for estimated subscriber counts and
 Subscribers.                   actual FY 2016 payment units.
Interstate Telecommunication   Based on FCC Form 499-Q data for the four
 Service Providers.             quarters of calendar year 2016, the
                                Wireline Competition Bureau projected
                                the amount of calendar year 2016 revenue
                                that will be reported on 2017 FCC Form
                                499-A worksheets due in April, 2017.
Earth Stations...............  Based on International Bureau (``IB'')
                                licensing data and actual FY 2016
                                payment units.
Space Stations (GSOs & NGSOs)  Based on IB data reports and actual FY
                                2016 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 Determine 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
 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--List of the Licensed Satellite Television Stations Based on Commission Records
                                                  [all markets]
----------------------------------------------------------------------------------------------------------------
                                                                                       Licensee as of September
               FCC_ID                       Call sign               TV market                  28, 2016
----------------------------------------------------------------------------------------------------------------
11912..............................  KAAS-TV...............  Wichita-Hutchinson, KS  KSAS LICENSEE, LLC
48659..............................  KABY-TV...............  Sioux Falls-Mitchell,   GRAY TELEVISION LICENSEE,
                                                              SD.                     LLC
4145...............................  KAII-TV...............  Honolulu, HI..........  LIN LICENSE COMPANY, LLC
13813..............................  KATN..................  Fairbanks, AK.........  VISION ALASKA II LLC
48556..............................  KBIM-TV...............  Albuquerque-Santa Fe,   LIN OF NEW MEXICO, LLC
                                                              NM.
55370..............................  KBRR..................  Fargo-Valley City, ND.  RED RIVER BROADCAST CO.,
                                                                                      LLC
66414..............................  KBSD-DT...............  Wichita-Hutchinson, KS  GRAY TELEVISION LICENSEE,
                                                                                      LLC
66415..............................  KBSH-DT...............  Wichita-Hutchinson, KS  GRAY TELEVISION LICENSEE,
                                                                                      LLC
66416..............................  KBSL-DT...............  Wichita-Hutchinson, KS  GRAY TELEVISION LICENSEE,
                                                                                      LLC
6669...............................  KBTX-TV...............  Waco-Temple-Bryan, TX.  GRAY TELEVISION LICENSEE,
                                                                                      LLC
35909..............................  KBVO..................  Austin, TX............  KXAN LLC
49750..............................  KCBY-TV...............  Eugene, OR............  SINCLAIR EUGENE LICENSEE,
                                                                                      LLC
9632...............................  KCCO-TV...............  Minneapolis-St. Paul,   CBS BROADCASTING INC.
                                                              MN.
9640...............................  KCCW-TV...............  Minneapolis-St. Paul,   CBS BROADCASTING INC.
                                                              MN.
18079..............................  KCFW-TV...............  Missoula, MT..........  BLUESTONE LICENSE HOLDINGS
                                                                                      INC.
41969..............................  KCLO-TV...............  Rapid City, SD........  YOUNG BROADCASTING OF RAPID
                                                                                      CITY, INC.

[[Page 26033]]

 
60740..............................  KDKF..................  Medford-Klamath Falls,  OREGON TV LICENSE COMPANY
                                                              OR.                     LLC
41975..............................  KDLO-TV...............  Sioux Falls-Mitchell,   YOUNG BROADCASTING OF SIOUX
                                                              SD.                     FALLS, INC.
55375..............................  KDLV-TV...............  Sioux Falls-Mitchell,   RED RIVER BROADCAST CO.,
                                                              SD.                     LLC
56029..............................  KEPR-TV...............  Yakima-Pasco-Richland-  SINCLAIR YAKIMA LICENSEE,
                                                              Kennewick, WA.          LLC
125................................  KFCT..................  Denver, CO............  TRIBUNE BROADCASTING DENVER
                                                                                      LICENSE
21613..............................  KFNE..................  Casper-Riverton, WY...  WYOMEDIA CORPORATION
21612..............................  KFNR..................  Casper-Riverton, WY...  WYOMEDIA CORPORATION
83714..............................  KFTC..................  Minneapolis-St. Paul,   FOX TELEVISION STATIONS,
                                                              MN.                     LLC
7894...............................  KGIN..................  Lincoln-Hastings-       GRAY TELEVISION LICENSEE,
                                                              Kearney, NE.            LLC
36914..............................  KGMD-TV...............  Honolulu, HI..........  HITV LICENSE SUBSIDIARY,
                                                                                      INC.
36920..............................  KGMV..................  Honolulu, HI..........  HITV LICENSE SUBSIDIARY,
                                                                                      INC.
63162..............................  KGWL-TV...............  Casper-Riverton, WY...  MARK III MEDIA, INC.
63170..............................  KGWR-TV...............  Casper-Riverton, WY...  MARK III MEDIA, INC.
4146...............................  KHAW-TV...............  Honolulu, HI..........  LIN LICENSE COMPANY, LLC
34846..............................  KHBC-TV...............  Honolulu, HI..........  KHNL/KGMB LICENSE
                                                                                      SUBSIDIARY, LLC
60354..............................  KHOG-TV...............  Ft. Smith-Fayetteville- KHBS HEARST TELEVISION INC.
                                                              Springdale-Rogers, AR.
34348..............................  KHSD-TV...............  Rapid City, SD........  GRAY TELEVISION LICENSEE,
                                                                                      LLC
64544..............................  KHVO..................  Honolulu, HI..........  KITV, INC.
55364..............................  KJRR..................  Fargo-Valley City, ND.  RED RIVER BROADCAST CO.,
                                                                                      LLC
1283...............................  KJWP..................  Philadelphia, PA......  PMCM TV, LLC
65523..............................  KLBY..................  Wichita-Hutchinson, KS  KNOXVILLE TV LLC
664................................  KLEI-TV...............  Honolulu, HI..........  MAUNA KEA BROADCASTING
                                                                                      COMPANY, INC.
56032..............................  KLEW-TV...............  Spokane, WA...........  SINCLAIR LEWISTON LICENSEE,
                                                                                      LLC
64551..............................  KMAU..................  Honolulu, HI..........  KITV, INC.
35183..............................  KMCB..................  Eugene, OR............  KMTR TELEVISION, LLC
22127..............................  KMCY..................  Minot-Bismarck-         KBMY-KMCY, LLC
                                                              Dickinson, ND.
41425..............................  KMOT..................  Minot-Bismarck-         GRAY TELEVISION LICENSEE,
                                                              Dickinson, ND.          LLC
82615..............................  KNDM..................  Minot-Bismarck-         LEGACY BROADCASTING, LLC
                                                              Dickinson, ND.
12427..............................  KNDU..................  Yakima-Pasco-Richland-  KHQ, INCORPORATED
                                                              Kennewick, WA.
17683..............................  KNEP..................  Cheyenne, WY-           GRAY TELEVISION LICENSEE,
                                                              Scottsbluff, NE.        LLC
55362..............................  KNRR..................  Fargo-Valley City, ND.  RED RIVER BROADCAST CO.,
                                                                                      LLC
29557..............................  KNWA-TV...............  Ft. Smith-Fayetteville  NEXSTAR BROADCASTING, INC.
                                                              -Springdale-Rogers,
                                                              AR.
35321..............................  KOBF..................  Albuquerque-Santa Fe,   KOB-TV, LLC
                                                              NM.
62272..............................  KOBR..................  Albuquerque-Santa Fe,   KOB-TV, LLC
                                                              NM.
83181..............................  KOCW..................  Wichita-Hutchinson, KS  KSAS LICENSEE, LLC
34859..............................  KOGG..................  Honolulu, HI..........  KHNL/KGMB LICENSE
                                                                                      SUBSIDIARY, LLC
8284...............................  KOTI..................  Medford-Klamath Falls,  CALIFORNIA OREGON
                                                              OR.                     BROADCASTING, INC.
61551..............................  KPIC..................  Eugene, OR............  SOUTH WEST OREGON TV BROAD.
                                                                                      CORP.
41964..............................  KPLO-TV...............  Sioux Falls-Mitchell,   YOUNG BROADCASTING OF SIOUX
                                                              SD.                     FALLS, INC.
73998..............................  KPOB-TV...............  Paducah-Cape Girardeau- WSIL-TV, INC.
                                                              Harrisburg-Mt Vernon.
48660..............................  KPRY-TV...............  Sioux Falls-Mitchell,   GRAY TELEVISION LICENSEE,
                                                              SD.                     LLC
41430..............................  KQCD-TV...............  Minot-Bismarck-         GRAY TELEVISION LICENSEE,
                                                              Dickinson, ND.          LLC
17686..............................  KQME..................  Rapid City, SD........  LEGACY BROADCASTING OF
                                                                                      RAPID CITY LLC
70578..............................  KREG-TV...............  Denver, CO............  NEXSTAR BROADCASTING, INC.
70579..............................  KREY-TV...............  Grand Junction-         NEXSTAR BROADCASTING, INC.
                                                              Montrose, CO.
48589..............................  KREZ-TV...............  Albuquerque-Santa Fe,   LIN OF COLORADO, LLC
                                                              NM.
82698..............................  KRII..................  Duluth, MN-Superior,    KBJR LICENSE, LLC
                                                              WI.
82613..............................  KRTN-TV...............  Albuquerque-Santa Fe,   RAMAR COMMUNICATIONS, INC.
                                                              NM.
84157..............................  KRWB-TV...............  Albuquerque-Santa Fe,   KASY-TV LICENSEE LLC
                                                              NM.
35585..............................  KRWF..................  Minneapolis-St. Paul,   KSAX-TV, INC.
                                                              MN.
307................................  KSAN-TV...............  San Angelo, TX........  MISSION BROADCASTING, INC.
35584..............................  KSAX..................  Minneapolis-St. Paul,   KSAX-TV, INC.
                                                              MN.
17680..............................  KSGW-TV...............  Rapid City, SD........  GRAY TELEVISION LICENSEE,
                                                                                      LLC
72359..............................  KSNC..................  Wichita-Hutchinson, KS  LIN LICENSE COMPANY, LLC
72361..............................  KSNG..................  Wichita-Hutchinson, KS  LIN LICENSE COMPANY, LLC
72362..............................  KSNK..................  Wichita-Hutchinson, KS  LIN LICENSE COMPANY, LLC
63182..............................  KSTF..................  Cheyenne, WY-           GRAY TELEVISION LICENSEE,
                                                              Scottsbluff, NE.        LLC
35187..............................  KTCW..................  Eugene, OR............  KMTR TELEVISION, LLC
68541..............................  KTRE..................  Tyler-Longview, TX....  KLTV/KTRE LICENSE
                                                                                      SUBSIDIARY, LLC
28501..............................  KTTM..................  Sioux Falls-Mitchell,   INDEPENDENT COMMUNICATIONS,
                                                              SD.                     INC.
18066..............................  KTVM-TV...............  Butte-Bozeman, MT.....  BLUESTONE LICENSE HOLDINGS
                                                                                      INC.
41429..............................  KUMV-TV...............  Minot-Bismarck-         GRAY TELEVISION LICENSEE,
                                                              Dickinson, ND.          LLC
65535..............................  KUPK..................  Wichita-Hutchinson, KS  KNOXVILLE TV LLC
2495...............................  KVEW..................  Yakima-Pasco-Richland-  APPLE VALLEY BROADCASTING,
                                                              Kennewick, WA.          INC.
40450..............................  KVIH-TV...............  Amarillo, TX..........  KVII LICENSEE, LLC

[[Page 26034]]

 
33078..............................  KVTV..................  Laredo, TX............  EAGLE CREEK BROADCASTING OF
                                                                                      LAREDO
42008..............................  KWAB-TV...............  Odessa-Midland, TX....  KWES LICENSE SUBSIDIARY,
                                                                                      LLC
21162..............................  KWNB-TV...............  Lincoln-Hastings-       KHGI LICENSEE, LLC
                                                              Kearney, NE.
55684..............................  KXMA-TV...............  Minot-Bismarck-         NEXSTAR BROADCASTING, INC.
                                                              Dickinson, ND.
55686..............................  KXMB-TV...............  Minot-Bismarck-         NEXSTAR BROADCASTING, INC.
                                                              Dickinson, ND.
55683..............................  KXMD-TV...............  Minot-Bismarck-         NEXSTAR BROADCASTING, INC.
                                                              Dickinson, ND.
60384..............................  KYLE-TV...............  Waco-Temple-Bryan, TX.  NEXSTAR BROADCASTING, INC.
5237...............................  KYUS-TV...............  Billings, MT..........  KYUS-TV BROADCASTING
                                                                                      CORPORATION
76001..............................  WBKP..................  Marquette, MI.........  LAKE SUPERIOR COMMUNITY
                                                                                      BROAD. CORP.
69544..............................  WCCU..................  Champaign-Springfield-  GOCOM MEDIA OF ILLINOIS,
                                                              Decatur, IL.            LLC
74419..............................  WCDC-TV...............  Albany-Schenectady-     YOUNG BROADCASTING OF
                                                              Troy, NY.               ALBANY, INC.
42116..............................  WCIX..................  Champaign-Springfield-  NEXSTAR BROADCASTING, INC.
                                                              Decatur, IL.
22124..............................  WDAZ-TV...............  Fargo-Valley City, ND.  FORUM COMMUNICATIONS
                                                                                      COMPANY
71325..............................  WDBB..................  Birmingham, AL........  WDBB-TV, INC.
6476...............................  WDPX-TV...............  Boston, MA............  ION MEDIA BOSTON LICENSE,
                                                                                      INC.
2709...............................  WEUX..................  La Crosse-Eau Claire,   NEXSTAR BROADCASTING, INC.
                                                              WI.
60553..............................  WFTY-DT...............  New York, NY..........  UNIVISION NEW YORK LLC
25395..............................  WFUP..................  Traverse City-          CADILLAC TELECASTING CO.
                                                              Cadillac, MI.
59279..............................  WGTQ..................  Traverse City-          TRAVERSE CITY (WGTU-TV)
                                                              Cadillac, MI.           LICENSEE, INC.
48668..............................  WHLT..................  Hattiesburg-Laurel, MS  MEDIA GENERAL
                                                                                      COMMUNICATIONS HOLDINGS
25684..............................  WICD..................  Champaign-Springfield-  WICD LICENSEE, LLC
                                                              Decatur, IL.
39887..............................  WIRS..................  San Juan, PR..........  AMERICA-CV STATION GROUP,
                                                                                      INC.
71336..............................  WIRT-DT...............  Duluth, MN-Superior,    WDIO-TV, LLC
                                                              WI.
68519..............................  WJKT..................  Jackson, TN...........  NEXSTAR BROADCASTING, INC.
86537..............................  WJLP..................  New York, NY..........  PMCM TV, LLC
9630...............................  WJMN-TV...............  Marquette, MI.........  NEXSTAR BROADCASTING, INC.
58342..............................  WJWN-TV...............  San Juan, PR..........  AMERICA-CV STATION GROUP,
                                                                                      INC.
58341..............................  WKPV..................  San Juan, PR..........  AMERICA-CV STATION GROUP,
                                                                                      INC.
73336..............................  WNJX-TV...............  San Juan, PR..........  TELEVICENTRO OF PUERTO
                                                                                      RICO, LLC
73344..............................  WNNE..................  Burlington, VT-         HEARST STATIONS INC.
                                                              Plattsburgh, NY.
16539..............................  WNTZ-TV...............  Alexandria, LA........  NEXSTAR BROADCASTING, INC.
64865..............................  WORA-TV...............  San Juan, PR..........  TELECINCO, INC.
48406..............................  WPXG-TV...............  Boston, MA............  ION MEDIA BOSTON LICENSE,
                                                                                      INC.
37971..............................  WPXU-TV...............  Greenville-New Bern -   ION MEDIA JACKSONVILLE
                                                              Washington, NC.         LICENSE, INC.
64550..............................  WQOW..................  La Crosse-Eau Claire,   WXOW-WQOW LICENSE, LLC
                                                              WI.
19776..............................  WSUR-DT...............  San Juan, PR..........  WLII/WSUR LICENSE
                                                                                      PARTNERSHIP, G.P.
26681..............................  WTIN-TV...............  San Juan, PR..........  TELEVICENTRO OF PUERTO
                                                                                      RICO, LLC
21254..............................  WTOM-TV...............  Traverse City-          WPBN LICENSEE, LLC
                                                              Cadillac, MI.
56526..............................  WTTK..................  Indianapolis, IN......  TRIBUNE BROADCASTING
                                                                                      INDIANAPOLIS, LLC
61573..............................  WVEO..................  San Juan, PR..........  SPANISH BROAD. SYSTEM
                                                                                      HOLDING CO.
24812..............................  WWCW..................  Roanoke-Lynchburg, VA.  NEXSTAR BROADCASTING, INC.
23264..............................  WWPX-TV...............  Washington, DC........  ION MEDIA MARTINSBURG
                                                                                      LICENSE, INC.
26993..............................  WWUP-TV...............  Traverse City-          HERITAGE BROAD. COMPANY OF
                                                              Cadillac, MI.           MICHIGAN
35582..............................  WYDO..................  Greenville-New Bern -   ESTEEM BROADCASTING OF
                                                              Washington, NC.         NORTH CAROLINA
77789..............................  WYOW..................  Wausau-Rhinelander, WI  WAOW-WYOW LICENSE, LLC
83270..............................  WZVI..................  Virgin Islands........  ALPHA BROADCASTING
                                                                                      CORPORATION
----------------------------------------------------------------------------------------------------------------


              Table 8--FY 2016 Schedule of Regulatory Fees
 [Regulatory fees for the categories shaded in gray are collected by the
Commission in advance to cover the term of the license and are submitted
                 at the time the application is filed.]
------------------------------------------------------------------------
                                                             Annual
                     Fee Category                        regulatory fee
                                                           (U.S. $s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).                 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)......................................

[[Page 26035]]

 
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: (continued)
                                                         [FY 2016 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................................................             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
1,200,001-3,000,000.....................................           8,250           5,950           5,175           5,700           9,000          10,300
3,000,001-6,000,000.....................................          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 (continued)
            [International Bearer Circuits--Submarine Cable]
------------------------------------------------------------------------
  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
------------------------------------------------------------------------

VII. Initial Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\113\ the Commission prepared this Initial Regulatory 
Flexibility Analysis (IRFA) of the possible significant economic impact 
on small entities by the policies and rules proposed in the Notice of 
Proposed Rulemaking (NPRM). Written comments are requested on this 
IRFA. Comments must be identified as responses to the IRFA and must be 
filed by the deadline for comments on this NPRM. The Commission will 
send a copy of the NPRM, including the IRFA, to the NPRM and IRFA (or 
summaries thereof) will be published in the Federal Register.\114\
---------------------------------------------------------------------------

    \113\ 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).
    \114\ Id.
---------------------------------------------------------------------------

A. Need for, and Objectives of, the Notice

    2. This NPRM seeks comment regarding adopting proposed regulatory 
fees for Fiscal Year 2017. The proposed regulatory fees are attached to 
the NPRM in Table 4. This regulatory fee NPRM is needed each year 
because the Commission is required by Congress to adopt regulatory fees 
each year ``to recover the costs of . . . enforcement activities, 
policy and rulemaking activities, user information services, and 
international activities.'' \115\ The objective of this NPRM is to 
propose regulatory fees for fiscal year 2017 and adopt regulatory fee 
reform to improve the regulatory fee process. This NPRM seeks comment 
on the following

[[Page 26036]]

proposals. (i) The NPRM proposes an increase in the DBS fee rate to 38 
cents per DBS subscriber so that the DBS fee would be approaching 
parity with the cable television/IPTV fee, based on the Media Bureau 
FTEs devoted to issues that include DBS. (ii) The NPRM seeks comment on 
revising rates for AM and FM broadcasters and further reducing rates 
for those broadcasters in smaller markets. (iii) The NPRM seeks comment 
on correctly identifying satellite television operators and ensuring 
that they pay the regulatory fee associated with satellite television. 
(iv) The NPRM seeks comment on adopting a new methodology for 
determining terrestrial international bearer circuit regulatory fees. 
(v) The NPRM seeks comment on providing additional regulatory fee 
relief to smaller entities by increasing the de minimis threshold from 
$500 to $1,000; allowing multiyear fee categories to be de minimis if 
the licensees' total fee for the year is no greater than the de minimis 
threshold; and eliminating certain fee categories from regulatory fees. 
(vi) The NPRM seeks comment on a proposal to reassign certain Wireline 
Competition Bureau FTEs and Wireless Telecommunications Bureau FTEs as 
indirect FTEs and reassign certain Wireline Competition Bureau FTEs as 
Wireless Telecommunications Bureau FTEs, for regulatory fee purposes.
---------------------------------------------------------------------------

    \115\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

B. Legal Basis

    3. This action, including publication of proposed rules, is 
authorized under sections (4)(i) and (j), 9, and 303(r) of the 
Communications Act of 1934, as amended.\116\
---------------------------------------------------------------------------

    \116\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
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C. Description and Estimate of the Number of Small Entities to Which 
the Rules Will Apply

    4. The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules and policies, if adopted.\117\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \118\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\119\ 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.\120\
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    \117\ 5 U.S.C. 603(b)(3).
    \118\ 5 U.S.C. 601(6).
    \119\ 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.''
    \120\ 15 U.S.C. 632.
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    5. Small Entities. Our actions, over time, may affect small 
entities that are not easily categorized at present. We therefore 
describe here, at the outset, three comprehensive small entity size 
standards that could be directly affected by the proposals under 
consideration.\121\ As of 2009, small businesses represented 99.9 
percent of the 27.5 million businesses in the United States, according 
to the SBA.\122\ In addition, a ``small organization is generally any 
not-for-profit enterprise which is independently owned and operated and 
not dominant in its field.\123\ In addition, the term ``small 
governmental jurisdiction'' is defined generally as ``governments of 
cities, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' \124\ U.S. 
Census Bureau data for 2011 indicate that there were 90,056 local 
governmental jurisdictions in the United States.\125\ We estimate that, 
of this total, as many as 89,327 entities may qualify as ``small 
governmental jurisdictions.'' \126\ Thus, we estimate that most local 
government jurisdictions are small.
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    \121\ See 5 U.S.C. 601(3) through (6).
    \122\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
    \123\ 5 U.S.C. 601(4).
    \124\ 5 U.S.C. 601(5).
    \125\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
    \126\ The 2011 U.S. Census Data for small governmental 
organizations are not presented based on the size of the population 
in each organization. As stated above, there were 90,056 local 
governmental organizations in 2011. As a basis for estimating how 
many of these 90,056 local governmental organizations were small, we 
note that there were a total of 729 cities and towns (incorporated 
places and civil divisions) with populations over 50,000. See https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. If we 
subtract the 729 cities and towns that exceed the 50,000 population 
threshold, we conclude that approximately 789,237 are small.
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    6. Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as ``establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired communications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services, wired (cable) audio and video programming 
distribution, and wired broadband internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry.'' \127\ 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.\128\ 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.\129\ Thus, under 
this size standard, the majority of firms in this industry can be 
considered small.
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    \127\ See https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \128\ See 13 CFR 120.201, NAICS code 517110.
    \129\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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    7. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to local exchange services. The closest applicable NAICS 
code category is for Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer 
employees.\130\ According to census data from 2012, there were 3,117 
establishments that operated that year. Of this total, 3,083 operated 
with fewer than 1,000 employees.\131\ The Commission estimates that 
most providers of local exchange service are small entities that may be 
affected by the rules proposed in the NPRM.
---------------------------------------------------------------------------

    \130\ 13 CFR 121.201, NAICS code 517110.
    \131\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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    8. Incumbent LECs. Neither the Commission nor the SBA has developed 
a small business size standard specifically for incumbent local 
exchange services. The closest applicable NAICS code category is Wired 
Telecommunications Carriers. Under that size standard, such a business 
is small if it has 1,500 or fewer

[[Page 26037]]

employees.\132\ According to census data from 2012, 3,117 firms 
operated in that year. Of this total, 3,083 operated with fewer than 
1,000 employees.\133\ According to Commission data, 1,307 carriers 
reported that they were incumbent local exchange service 
providers.\134\ Of this total of 1,307 incumbent local exchange service 
providers, an estimated 1,006 operated with 1,500 or fewer 
employees.\135\ Consequently, the Commission estimates that most 
providers of incumbent local exchange service are small businesses that 
may be affected by the rules proposed in this NPRM.
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    \132\ 13 CFR 121.201, NAICS code 517110.
    \133\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \134\ 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).
    \135\ See id.
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    9. Competitive Local Exchange Carriers (Competitive LECs), 
Competitive Access Providers (CAPs), Shared-Tenant Service Providers, 
and Other Local Service Providers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for these 
service providers. The appropriate NAICS code category is Wired 
Telecommunications Carriers. Under that size standard, such a business 
is small if it has 1,500 or fewer employees.\136\ 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.\137\ Based on 
this data, the Commission concludes that the majority of Competitive 
LECs, CAPs, Shared-Tenant Service Providers, and Other Local Service 
Providers are small entities. According to the Commission data, 1,442 
carriers reported that they were engaged in the provision of either 
competitive local exchange services or competitive access provider 
services.\138\ Of these 1,442 carriers, an estimated 1,256 have 1,500 
or fewer employees. In addition, 17 carriers have reported that they 
are Shared-Tenant Service Providers, and all 17 are estimated to have 
1,500 or fewer employees.\139\ Also, 72 carriers have reported that 
they are Other Local Service Providers.\140\ Of this total, 70 have 
1,500 or fewer employees.\141\ Consequently, the Commission estimates 
that most providers of competitive local exchange service, competitive 
access providers, Shared-Tenant Service Providers, and Other Local 
Service Providers are small entities that may be affected by rules 
proposed in this NPRM.
---------------------------------------------------------------------------

    \136\ 13 CFR 121.201, NAICS code 517110.
    \137\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \138\ See Trends in Telephone Service, at Table 5.3.
    \139\ Id.
    \140\ Id.
    \141\ Id.
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    10. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a definition for Interexchange Carriers. The closest 
NAICS code category is Wired Telecommunications Carriers as defined in 
paragraph 6 of this IRFA. The applicable size standard under SBA rules 
is that such a business is small if it has 1,500 or fewer 
employees.\142\ 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.\143\ According to Commission data, 359 companies 
reported that their primary telecommunications service activity was the 
provision of interexchange services.\144\ Of this total, an estimated 
317 have 1,500 or fewer employees. Consequently, the Commission 
estimates that the majority of interexchange service providers are 
small entities that may be affected by rules proposed in this NPRM.
---------------------------------------------------------------------------

    \142\ 13 CFR 121.201, NAICS code 517110.
    \143\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \144\ See Trends in Telephone Service, at Table 5.3.
---------------------------------------------------------------------------

    11. Prepaid Calling Card Providers. Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
prepaid calling card providers. The appropriate NAICS code category for 
prepaid calling card providers is Telecommunications Resellers. This 
industry comprises establishments engaged in purchasing access and 
network capacity from owners and operators of telecommunications 
networks and reselling wired and wireless telecommunications services 
(except satellite) to businesses and households. Establishments in this 
industry resell telecommunications; they do not operate transmission 
facilities and infrastructure. Mobile virtual networks operators 
(MVNOs) are included in this industry.\145\ Under the applicable SBA 
size standard, such a business is small if it has 1,500 or fewer 
employees.\146\ 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.\147\ 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.\148\ All 
193 carriers have 1,500 or fewer employees.\149\ Consequently, the 
Commission estimates that the majority of prepaid calling card 
providers are small entities that may be affected by rules proposed in 
this NPRM.
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    \145\ https://www.census.gov/cgi-bin/ssd/naics/naicsrch.
    \146\ 13 CFR 121.201, NAICS code 517911.
    \147\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \148\ See Trends in Telephone Service, at Table 5.3.
    \149\ 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.\150\ 
Census data for 2012 show that 1,341 firms provided resale services 
during that year.\151\ Of that number, 1,341 operated with fewer than 
1,000 employees.\152\ 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.\153\ Of this total, an estimated 211 have 1,500 or fewer 
employees.\154\ Consequently, the Commission estimates that the 
majority of local resellers are small entities that may be affected by 
rules proposed in this NPRM.
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    \150\ 13 CFR 121.201, NAICS code 517911.
    \151\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \152\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \153\ See Trends in Telephone Service, at Table 5.3.
    \154\ 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.\155\ Under that size standard, such a business is small if 
it has 1,500

[[Page 26038]]

or fewer employees.\156\ Census data for 2012 show that 1,341 firms 
provided resale services during that year.\157\ Of that number, 1,341 
operated with fewer than 1,000 employees.\158\ 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.\159\ Of this total, an estimated 
857 have 1,500 or fewer employees.\160\ Consequently, the Commission 
estimates that the majority of toll resellers are small entities that 
may be affected by the rules proposed in the NPRM.
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    \155\ 13 CFR 121.201, NAICS code 517911.
    \156\ Id.
    \157\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \158\ Id.
    \159\ Trends in Telephone Service at Table 5.3.
    \160\ Id.
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    14. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a size standard for small businesses specifically applicable 
to Other Toll Carriers. This category includes toll carriers that do 
not fall within the categories of interexchange carriers, operator 
service providers, prepaid calling card providers, satellite service 
carriers, or toll resellers. The closest applicable NAICS code category 
is for Wired Telecommunications Carriers, as defined in paragraph 6 of 
this IRFA. Under that size standard, such a business is small if it has 
1,500 or fewer employees.\161\ Census data for 2012 shows that there 
were 3,117 firms that operated that year.\162\ Of this total, 3,083 
operated with fewer than 1,000 employees.\163\ Thus, under this 
category and the associated small business size standard, the majority 
of Other Toll Carriers can be considered small. According to Commission 
data, 284 companies reported that their primary telecommunications 
service activity was the provision of other toll carriage.\164\ Of 
these, an estimated 279 have 1,500 or fewer employees.\165\ 
Consequently, the Commission estimates that most Other Toll Carriers 
are small entities that may be affected by the rules proposed in the 
NPRM.
---------------------------------------------------------------------------

    \161\ 13 CFR 121.201, NAICS code 517110.
    \162\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \163\ Id.
    \164\ Trends in Telephone Service, at Table 5.3.
    \165\ 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.\166\ 
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.\167\ Of this total, 955 firms had fewer than 1,000 
employees.\168\ 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 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.\169\ Of this total, an 
estimated 261 have 1,500 or fewer employees.\170\ Thus, using available 
data, we estimate that the majority of wireless firms can be considered 
small and may be affected by rules proposed in this NPRM.
---------------------------------------------------------------------------

    \166\ NAICS code 517210. See https://www.census.gov/cgi-bin/ssd/
naics/naiscsrch.
    \167\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \168\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \169\ Trends in Telephone Service, at Table 5.3.
    \170\ Id.
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    16. Television Broadcasting. This Economic Census category 
``comprises establishments primarily engaged in broadcasting images 
together with sound. These establishments operate television 
broadcasting studios and facilities for the programming and 
transmission of programs to the public.'' \171\ 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.\172\ 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.\173\ 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.\174\ We therefore 
estimate that the majority of commercial television broadcasters are 
small entities.
---------------------------------------------------------------------------

    \171\ U.S. Census Bureau, 2012 NAICS code Economic Definitions, 
https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \172\ 13 CFR 121.201, NAICS code 515120.
    \173\ 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.
    \174\ 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 \175\ 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.
---------------------------------------------------------------------------

    \175\ ``[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.\176\ These stations are non-profit, and therefore considered to be 
small entities.\177\ There are also 2,528 low power television 
stations, including Class A stations

[[Page 26039]]

(LPTV).\178\ 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.
---------------------------------------------------------------------------

    \176\ 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.
    \177\ See generally 5 U.S.C. 601(4), (6).
    \178\ 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 Broadcasting. This Economic Census category ``comprises 
establishments primarily engaged in broadcasting aural programs by 
radio to the public. Programming may originate in their own studio, 
from an affiliated network, or from external sources.'' \179\ 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.\180\ 
U.S. Census data for 2012 show that 2,849 radio station firms operated 
during that year.\181\ Of that number, 2,806 operated with annual 
receipts of less than $25 million per year.\182\ According to 
Commission staff review of BIA Advisory Services, LLC's Media Access 
Pro Radio Database on March 28, 2012, about 10,759 (97%) of 11,102 
commercial radio stations had revenues of $38.5 million or less. 
Therefore, the majority of such entities are small entities.
---------------------------------------------------------------------------

    \179\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \180\ 13 CFR 121.201, NAICS code 515112.
    \181\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \182\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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    20. In assessing whether a business concern qualifies as small 
under the above size standard, business affiliations must be 
included.\183\ In addition, to be determined to be a ``small 
business,'' the entity may not be dominant in its field of 
operation.\184\ 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.
---------------------------------------------------------------------------

    \183\ ``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).
    \184\ 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.\185\ 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.\186\ Of this total, 319 operated 
with annual receipts of less than $25 million.\187\ 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 proposed in this NPRM.
---------------------------------------------------------------------------

    \185\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \186\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \187\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US-51SSSZ5&prodType=Table.
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    22. Cable Companies and Systems. The Commission has developed its 
own small business size standards for the purpose of cable rate 
regulation. Under the Commission's rules, a ``small cable company'' is 
one serving 400,000 or fewer subscribers nationwide.\188\ Industry data 
indicate that there are currently 4,600 active cable systems in the 
United States.\189\ Of this total, all but ten cable operators 
nationwide are small under the 400,000-subscriber size standard.\190\ 
In addition, under the Commission's rate regulation rules, a ``small 
system'' is a cable system serving 15,000 or fewer subscribers.\191\ 
Current Commission records show 4,600 cable systems nationwide.\192\ Of 
this total, 3,900 cable systems have less than 15,000 subscribers, and 
700 systems have 15,000 or more subscribers, based on the same 
records.\193\ Thus, under this standard as well, the Commission 
estimates that most cable systems are small entities.
---------------------------------------------------------------------------

    \188\ 47 CFR 76.901(e).
    \189\ 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.
    \190\ See SNL KAGAN at www.snl.com/interactiveX/top cableMSOs 
aspx?period2015Q1&sortcol=subscribersbasic&sortorder=desc.
    \191\ 47 CFR 76.901(c).
    \192\ See footnote 2, supra.
    \193\ 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.'' \194\ There are approximately 52,403,705 cable video 
subscribers in the United States today.\195\ 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.\196\ 
Based on available data, we find that all but nine incumbent cable 
operators are small entities under this size standard.\197\ The 
Commission neither requests nor collects information on whether cable 
system operators are affiliated with entities whose gross annual 
revenues exceed $250 million.\198\ Although it seems certain that some 
of these cable system operators are affiliated with entities whose 
gross annual revenues exceed $250,000,000, we are unable at this time 
to estimate with greater precision the number of cable system operators 
that would qualify as small cable operators under the definition in the 
Communications Act.
---------------------------------------------------------------------------

    \194\ 47 CFR 76.901 (f) and notes ff. 1, 2, and 3.
    \195\ See SNL KAGAN at www.snl.com/interactivex/MultichannelIndustryBenchmarks.aspx.
    \196\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \197\ See SNL KAGAN at www.snl.com/Interactivex/TopCable 
MSOs.aspx.
    \198\ 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 47 CFR 76.901(f) of the Commission's rules. See 47 CFR 
76.901(f).
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    24. Direct Broadcast Satellite (DBS) Service. DBS Service is a 
nationally distributed subscription service that delivers video and 
audio programming via satellite to a small parabolic dish antenna at 
the subscriber's location. DBS is now included in SBA's economic census 
category ``Wired Telecommunications Carriers.'' The Wired 
Telecommunications Carriers industry comprises establishments primarily 
engaged in operating and/or providing access to transmission facilities 
and infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single technology 
or combination of technologies. Establishments in this industry use the 
wired telecommunications network facilities that they operate to 
provide a variety of

[[Page 26040]]

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.\199\ 
The SBA determines that a wireline business is small if it has fewer 
than 1500 employees.\200\ 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.\201\ Based on that 
data, we conclude that the majority of wireline firms are small under 
the applicable standard. However, currently only two entities provide 
DBS service, which requires a great deal of capital for operation: AT&T 
and DISH Network.\202\ 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 DBS service is provided only by 
large firms.
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    \199\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \200\ NAICs code 517110; 13 CFR 121.201.
    \201\ https://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
    \202\ See 15th Annual Video Competition Report, 28 FCC Rcd at 
1057, Section 27.
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    25. All Other Telecommunications. ``All Other Telecommunications'' 
is defined as follows: This U.S. industry is comprised of 
establishments that are primarily engaged in providing specialized 
telecommunications services, such as satellite tracking, communications 
telemetry, and radar station operation. This industry also includes 
establishments primarily engaged in providing satellite terminal 
stations and associated facilities connected with one or more 
terrestrial systems and capable of transmitting telecommunications to, 
and receiving telecommunications from, satellite systems. 
Establishments providing Internet services or Voice over Internet 
Protocol (VoIP) services via client-supplied telecommunications 
connections are also included in this industry.\203\ 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.\204\ 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.\205\ Thus, a majority of ``All Other 
Telecommunications'' firms potentially affected by the proposals in the 
NPRM can be considered small.
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    \203\ https://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
    \204\ 13 CFR 121.201; NAICs code 517919.
    \205\ https://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
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    26. RespOrgs. Responsible Organizations, or RespOrgs, 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.\206\ 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.
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    \206\ See 47 CFR 52.101(b).
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    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,\207\ and Wireless Telecommunications Carriers (except 
satellite).\208\
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    \207\ 13 CFR 121.201, NAICS code 517110.
    \208\ Id.
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    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.\209\ 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.\210\ 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.\211\ Based 
on that data, we conclude that the majority of Carrier RespOrgs that 
operated with wireline-based technology are small.
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    \209\ https://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \210\ 13 CFR 120,201, NAICS code 517110.
    \211\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
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    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.\212\ 
The appropriate size standard under SBA rules is that such a business 
is small if it has 1,500 or fewer employees.\213\ 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.\214\ 
Based on that data, we conclude that the majority of Carrier RespOrgs 
that operated with wireless-based technology are small.
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    \212\ https://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \213\ 13 CFR 120.201, NAICS code 517120.
    \214\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
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    30. Non-Carrier RespOrgs. Neither the Commission, the U.S. 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'' \215\ and ``Other Management Consulting 
Services.'' \216\
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    \215\ 13 CFR 120.201, NAICS code 541890.
    \216\ 13 CFR 120.201, NAICS code 541618.
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    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).\217\ The SBA has established a size standard for this 
industry as annual receipts of $15 million dollars or less.\218\ 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

[[Page 26041]]

million.\219\ Based on that data we conclude that the majority of Non-
Carrier RespOrgs who provide toll-free number (TFN)-related advertising 
services are small.
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    \217\ https://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \218\ 13 CFR 120.201, NAICS code 541890.
    \219\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
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    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.\220\ The SBA has established a size standard 
for this industry of $15 million dollars or less.\221\ 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.\222\ Based on this data, we conclude that a majority 
of non-carrier RespOrgs who provide TFN-related management consulting 
services are small.\223\
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    \220\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \221\ 13 CFR 120.201, NAICS code 514618.
    \222\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
    \223\ 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.
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    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.

D. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

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

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

    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.\224\
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    \224\ 5 U.S.C. 603(c)(1) through (c)(4).
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    36. This NPRM seeks comment on the Commission's regulatory fee 
collection for Fiscal Year 2017, as required by Congress each year. 
Specifically, we ask for comments each year in the Regulatory 
Flexibility Analysis on how to minimize adverse economic impact, 
imposed by our proposed rules, on small entities. The regulatory fees 
proposed in this NPRM do not include any new fee categories. However, 
the proposal to reduce fees for smaller broadcast entities may provide 
financial relief to smaller entities if it is adopted. The proposal to 
increase the de minimis threshold from $500 to $1,000 would, if 
adopted, allow additional smaller entities to pay no regulatory fees if 
their annual total amount of fees is no greater than $1,000. The 
proposal to allow multiyear licenses to be de minimis based on the 
total amount of fees owed each year, if adopted, would allow smaller 
entities with multiyear licenses to pay no regulatory fees depending on 
the total amount owed each year. Finally, the proposal to exclude 
certain licenses from regulatory fees may, if adopted, provide 
financial relief to smaller entities because they would not have to pay 
regulatory fees for those particular licenses at all.

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

    37. None.

VIII. Ordering Clause

    38. Accordingly, it is ordered that, pursuant to section 9 of the 
Communications Act of 1934, as amended, 47 U.S.C. 159, this Notice of 
Proposed Rulemaking is hereby adopted.

Federal Communications Commission.
Katura Jackson,
Federal Register Liasion Officer.
[FR Doc. 2017-11578 Filed 6-5-17; 8:45 am]
 BILLING CODE 6712-01-P