Assessment and Collection of Regulatory Fees for Fiscal Year 2017, 50598-50606 [2017-23215]
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Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Proposed Rules
Dated: October 26, 2017.
Anna K. Abram,
Deputy Commissioner for Policy, Planning,
Legislation, and Analysis.
BILLING CODE 4164–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
FEDERAL COMMUNICATIONS
COMMISSION
Food and Drug Administration
47 CFR Part 1
21 CFR Part 573
[MD Docket Nos. 17–134; FCC 17–111]
[Docket No. FDA–2014–F–0295]
21 CFR Part 573
[FR Doc. 2017–23729 Filed 10–31–17; 8:45 am]
BILLING CODE 4164–01–P
Food and Drug Administration
Dated: October 26, 2017.
Anna K. Abram,
Deputy Commissioner for Policy, Planning,
Legislation, and Analysis.
[FR Doc. 2017–23728 Filed 10–31–17; 8:45 am]
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Assessment and Collection of
Regulatory Fees for Fiscal Year 2017
[Docket No. FDA–2013–F–1539]
DSM Nutritional Products, Inc.;
Withdrawal of Food Additive Petition
(Animal Use)
AGENCY:
Food and Drug Administration,
HHS.
Notification; withdrawal of
petition for rulemaking.
ACTION:
The Food and Drug
Administration (FDA or we) is
announcing the withdrawal, without
prejudice to a future filing, of a food
additive petition (animal use) (FAP
2276) proposing that the food additive
regulations be amended to provide for
the safe use of ethoxyquin in vitamin D
formulations, including 25hydroxyvitamin D3, used in animal
food.
sradovich on DSK3GMQ082PROD with PROPOSALS
SUMMARY:
DSM Nutritional Products, Inc.;
Withdrawal of Food Additive Petition
(Animal Use)
AGENCY:
Food and Drug Administration,
17:05 Oct 31, 2017
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Notification; withdrawal of
petition for rulemaking.
ACTION:
SUMMARY:
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In this document, the Federal
Communications Commission
(Commission) seeks further comment on
the appropriate tiers for calculating
terrestrial and satellite international
bearer circuit fees, and the methodology
by which cable television subscribers in
multiple dwelling units (MDUs) are
calculated.
DATES: Comments are due on or before
December 1, 2017 and reply comments
are due on or before December 18, 2017.
ADDRESSES: You may submit comments,
identified by MD Docket No. 17–134, by
any of the following methods listed in
the Comment Filing Procedures section
below.
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 Further
Notice of Proposed Rulemaking
(FNPRM), FCC 17–111, MD Docket No.
17–134 adopted on September 1, 2017
and released on September 5, 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
SUMMARY:
HHS.
The Food and Drug
Administration (FDA or we) is
announcing the withdrawal, without
prejudice to a future filing, of a food
additive petition (FAP 2280) proposing
that the food additive regulations be
DATES: The food additive petition was
amended to provide for the safe use of
withdrawn on September 13, 2017.
25-hydroxyvitamin D3 in feed for swine.
ADDRESSES: For access to the docket to
DATES: The food additive petition was
read background documents or
withdrawn on September 13, 2017.
comments received, go to https://
ADDRESSES: For access to the docket to
www.regulations.gov and insert the
read background documents or
docket number, found in brackets in the
comments received, go to https://
heading of this document, into the
www.regulations.gov and insert the
‘‘Search’’ box and follow the prompts;
docket number, found in brackets in the
and/or go to the Dockets Management
heading of this document, into the
Staff, 5630 Fishers Lane, Rm. 1061,
‘‘Search’’ box and follow the prompts;
Rockville, MD 20852.
and/or go to the Dockets Management
FOR FURTHER INFORMATION CONTACT:
Staff, 5630 Fishers Lane, Rm. 1061,
Chelsea Trull, Center for Veterinary
Rockville, MD 20852.
Medicine, Food and Drug
FOR FURTHER INFORMATION CONTACT:
Administration, 7519 Standish Pl.,
Chelsea Trull, Center for Veterinary
Rockville, MD 20855, 240–402–6729,
Medicine, Food and Drug
chelsea.trull@fda.hhs.gov.
Administration, 7519 Standish Pl.,
SUPPLEMENTARY INFORMATION: In a notice Rockville, MD 20855, 240–402–6729,
chelsea.trull@fda.hhs.gov.
published in the Federal Register of
December 23, 2013 (78 FR 77384), we
SUPPLEMENTARY INFORMATION: In a notice
announced that we had filed a food
published in the Federal Register of
additive petition (FAP 2276), submitted March 25, 2014 (79 FR 16252), we
by DSM Nutritional Products, 45
announced that we had filed a food
Waterview Blvd., Parsippany, NJ 07054. additive petition (FAP 2280), submitted
The petition proposed to amend the
by DSM Nutritional Products, 45
food additive regulations in 21 CFR part Waterview Blvd., Parsippany, NJ 07054.
573 Food Additives Permitted in Feed
The petition proposed to amend the
and Drinking Water of Animals to
food additive regulations in 21 CFR part
provide for the safe use of ethoxyquin
573, Food Additives Permitted in Feed
as a chemical preservative in vitamin D
and Drinking Water of Animals, to
formulations, including 25provide for the safe use of 25hydroxyvitamin D3, used in animal food. hydroxyvitamin D3 in feed for swine.
DSM Nutritional Products, Inc., has now DSM Nutritional Products, Inc. has now
withdrawn the petition without
withdrawn the petition without
prejudice to a future filing (21 CFR
prejudice to a future filing (21 CFR
571.7).
571.7).
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Federal Communications
Commission.
ACTION: Notice of proposed rulemaking.
AGENCY:
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Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Proposed Rules
these formats may contact the FCC by
email: FCC504@fcc.gov or phone: 202–
418–0530 or TTY: 202–418–0432.
I. Procedural Matters
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A. Ex Parte Rules Permit-But-Disclose
Proceeding
1. This Further Notice of Proposed
Rulemaking (FY 2017 FNPRM) shall be
treated as a ‘‘permit-but-disclose’’
proceeding in accordance with the
Commission’s ex parte rules. Persons
making ex parte presentations must file
a copy of any written presentation or a
memorandum summarizing any oral
presentation within two business days
after the presentation (unless a different
deadline applicable to the Sunshine
period applies). Persons making oral ex
parte presentations are reminded that
memoranda summarizing the
presentation must list all persons
attending or otherwise participating in
the meeting at which the ex parte
presentation was made, and summarize
all data presented and arguments made
during the presentation. If the
presentation consisted in whole or in
part of the presentation of data or
arguments already reflected in the
presenter’s written comments,
memoranda, or other filings in the
proceeding, the presenter may provide
citations to such data or arguments in
his or her prior comments, memoranda,
or other filings (specifying the relevant
page and/or paragraph numbers where
such data or arguments can be found) in
lieu of summarizing them in the
memorandum. Documents shown or
given to Commission staff during ex
parte meetings are deemed to be written
ex parte presentations and must be filed
consistent with § 1.1206(b). In
proceedings governed by § 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
§§ 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
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Comment Filing System (ECFS), (2) the
Federal Government’s eRulemaking
Portal, or (3) by filing paper copies. See
Electronic Filing of Documents in
Rulemaking Proceedings, 63 FR 24121
(1998).
• Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://
fjallfoss.fcc.gov/ecfs2/ or the Federal
eRulemaking Portal: https://
www.regulations.gov.
• Paper Filers: Parties who choose to
file by paper must file an original and
four copies of each filing. If more than
one docket or rulemaking number
appears in the caption of this
proceeding, filers must submit two
additional copies for each additional
docket or rulemaking number.
Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
D All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th St. SW., Room TW–A325,
Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes must be disposed of before
entering the building.
D Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9050
Junction Drive, Annapolis Junction, MD
20701.
D U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW.,
Washington, DC 20554.
People with Disabilities: To request
materials in accessible formats for
people with disabilities (braille, large
print, electronic files, audio format),
send an email to fcc504@fcc.gov or call
the Consumer & Governmental Affairs
Bureau at 202–418–0530 (voice), 202–
418–0432 (tty).
3. Availability of Documents.
Comments, reply comments, and ex
parte submissions will be available for
public inspection during regular
business hours in the FCC Reference
Center, Federal Communications
Commission, 445 12th Street SW., CY–
A257, Washington, DC 20554. These
documents will also be available free
online, via ECFS. Documents will be
available electronically in ASCII, Word,
and/or Adobe Acrobat.
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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 Further Notice of Proposed
Rulemaking, we seek further comment
on the appropriate tiers for calculating
terrestrial and satellite international
bearer circuit fees raised in the FY 2016
NPRM and the FY 2017 NPRM and the
methodology for calculating cable
television subscribers in multiple
dwelling units (MDUs) raised in the FY
2008 FNPRM.1
A. International Bearer Circuits
8. We seek further comment on this
issue to have a more comprehensive
record for adopting a new flat rate
methodology for terrestrial and satellite
IBCs and to revise the tiers for
submarine cable systems. We also seek
comment on the proposal to adopt a
regulatory fee for all holders of section
214 international authorizations.
9. In the Submarine Cable Order, the
Commission adopted a tiered system
using gigabits per second (Gbps)
1 FY 2008 FNPRM, 73 FR 50285, 50290 at
paragraphs 27–28.
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increments (instead of 64 kbps 2). The
tiers adopted for submarine cable
systems at that time were as follows:
‘‘large’’ systems, 20 Gbps or more,
paying one payment unit each; systems
with capacity equal to or greater than 10
Gbps but less than 20 Gbps, paying 50
percent of a payment unit; systems with
capacity equal to or greater than 5 Gbps
but less than 10 Gbps, paying 25 percent
of a payment unit; systems with
capacity equal to or greater than 2.5
Gbps but less than 5 Gbps, paying 12.5
percent of a payment unit; and systems
with capacity below 2.5 Gbps paying
6.25 percent of a payment unit.3
10. We propose revising the tiers for
submarine cable systems. We recognize
that since we adopted the current tiers
for submarine cable systems, the
subsequent growth in the industry has
moved all but two systems to the
highest tier. We seek comment on
whether we should revise the tiers. For
example, we could adopt the following:
Systems with capacity of 10,000 Gbps or
more, paying 16 payment units each;
systems with capacity equal to or greater
than 5,000 Gbps but less than 10,000
Gbps, paying eight payment units;
systems with capacity equal to or greater
than 2,500 Gbps but less than 5,000
Gbps, paying four payment units;
systems with capacity equal to or greater
than 1,000 Gbps but less than 2,500
Gbps, paying two payment units; and
systems with capacity below 1,000 Gbps
paying one payment unit. We seek
comment on this proposal.
11. We also propose adopting, for
terrestrial and satellite IBCs, the same
five tiers used for submarine cable
systems. Level 3 contends that two tiers
would be sufficient for terrestrial and
satellite IBCs to ensure that larger
carriers pay a fair amount and to avoid
being a barrier to entry for new
providers.4 AT&T opposes a two-tiered
approach, contending that the
disparities between the volumes of
circuits held by different operators may
be too large to structure a reasonable
and fair system.5 We seek comment on
whether we should adopt the same tiers
for common carrier and non-common
carrier terrestrial and satellite IBCs.
Commenters proposing different tiers,
including fewer or greater numbers of
tiers, should explain how their
proposals would be more equitable.
2 Sixty-four Kbps is the unit of measurement for
voice grade circuits; submarine cable, terrestrial,
and satellite international bearer circuits are now
largely used for data.
3 Submarine Cable Order, 74 FR 22104, 22107 at
paragraph 16 (May 12, 2009).
4 Level 3 June 29, 2017 ex parte at 1.
5 AT&T Reply Comments at 3.
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12. In its comments, the Coalition
suggested that the Commission should
adopt a fee methodology based on flat
fee from every holder of an international
section 214 authorization.6 We seek
further comment on this approach.
Should a flat fee based on holding an
international section 214 authorization
replace only the terrestrial and satellite
IBCs regulatory fees, with submarine
cable IBCs continuing to be assessed on
holding a cable landing license, or
should it replace all IBC regulatory fees
(i.e., terrestrial, satellite and submarine
cable)? Would a flat fee on an
international section 214 authorization
reduce administrative burdens in
collecting the IBC fee? The Coalition
states that there are approximately 7,000
current international section 214
authorizations,7 but CTIA notes that
many of those are held by companies
that do not actually provide
international service and many
companies hold multiple
authorizations.8 We seek comment on
whether a fee should be applied to every
holder of an international section 214
authorization regardless of the number
of international section 214
authorizations held. Alternatively,
should a set fee be applied to every
international section 214 authorization?
We also seek comment on whether there
should be a different fee based on
whether the international section 214
authorization is for resale only or for
facilities-based services. We seek
comment on whether a fee based on
international section 214 authorizations
should be calibrated based on size. For
example, should there be one fee for
resale, another up to a certain number
of circuits, and a larger fee for any
circuits above that amount? We seek
comment on CITA’s assertion that there
are no additional, ongoing costs
associated with international section
214 authorizations that are not already
covered by the application fees.9 We
seek comment on whether a fee applied
to each section 214 authorization holder
would capture most carriers that
provide non-common carrier services or
are there a number of carriers that
provide only non-common carrier
international services?
B. Cable Television Services—
Calculation of Number of Subscribers
13. In the FY 2008 FNPRM, the
Commission sought comment on the
bulk rate calculation for determining the
number of subscribers in a multiple
6 Coalition
Comments at 8–10.
Comments at 9.
8 CTIA Reply at 8.
9 CTIA Reply at 9.
7 Coalition
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dwelling unit or MDU.10 The
methodology for calculating the number
of cable subscribers has since been the
following:
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 [year], rather than on a
count as of December 31, [year].11
14. We recognize that the cable
television industry has evolved
significantly and the bulk rate
calculation may not be reasonable or
feasible today because of the many
services offered today by cable
providers. Specifically, with offerings of
different packages and bundles, it may
no longer be feasible to use a bulk rate
calculation. Commenters should discuss
if they use the bulk rate calculation or
if they separately count each subscriber,
even those living in MDUs.
15. We seek comment on whether we
should keep the bulk rate calculation, or
alternatively, whether we should
modify the methodology to more
accurately calculate the numbers of
subscribers in a MDU. We seek
comment on whether we should
eliminate the bulk rate calculation due
to changes in today’s cable market.
III. Initial Regulatory Flexibility
Analysis
1. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA),12 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
Further Notice of Proposed Rulemaking
(FNPRM). 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 Further Notice. The
Commission will send a copy of the
Further Notice, including the IRFA, to
the Chief Counsel for Advocacy of the
Small Business Administration (SBA).13
10 FY 2008 Further Notice of Proposed
Rulemaking, 73 FR 50285, 50290 at paragraphs 27–
28, August 26, 2008, (FY 2008 Further Notice).
11 This is essentially the same methodology we
sought comment on in the FY 2008 FNPRM.
12 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 Number 104–121, Title II, 110 Stat. 847 (1996).
13 5 U.S.C. 603(a).
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In addition, the FNPRM and IRFA (or
summaries thereof) will be published in
the Federal Register.14
A. Need for, and Objectives of, the
Further Notice
2. The FNPRM seeks comment
regarding (1) adopting a new five-tiered
flat rate methodology for assessing
regulatory fees for terrestrial and
satellite international bearer circuits
(IBCs), revising the tiers for submarine
cable systems, and adopting a new fee
category for all holders of section 214
international authority and (2) revising
the calculation for cable television
‘‘Bulk Rate Customers.’’
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.15
A. 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.16 The RFA generally defines
the term ‘‘small entity’’ as having the
same meaning as the terms ‘‘small
business,’’ ‘‘small organization,’’ and
‘‘small governmental jurisdiction.’’ 17 In
addition, the term ‘‘small business’’ has
the same meaning as the term ‘‘small
business concern’’ under the Small
Business Act.18 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.19
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.20
14 Id.
15 47
U.S.C. 154(i) and (j), 159, and 303(r).
U.S.C. 603(b)(3).
17 5 U.S.C. 601(6).
18 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.’’
19 15 U.S.C. 632.
20 See 5 U.S.C. 601(3) through (6).
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As of 2009, small businesses
represented 99.9 percent of the 27.5
million businesses in the United States,
according to the SBA.21 In addition, a
‘‘small organization is generally any notfor-profit enterprise which is
independently owned and operated and
not dominant in its field.22 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.’’ 23 U.S. Census
Bureau data for 2011 indicate that there
were 90,056 local governmental
jurisdictions in the United States.24 We
estimate that, of this total, as many as
89,327 entities may qualify as ‘‘small
governmental jurisdictions.’’ 25 Thus,
we estimate that most local government
jurisdictions are small.
6. Wired Telecommunications
Carriers. The U.S. Census Bureau
defines this industry as ‘‘establishments
primarily engaged in operating and/or
providing access to transmission
facilities and infrastructure that they
own and/or lease for the transmission of
voice, data, text, sound, and video using
wired communications networks.
Transmission facilities may be based on
a single technology or a combination of
technologies. Establishments in this
industry use the wired
telecommunications network facilities
that they operate to provide a variety of
services, such as wired telephony
services, including VoIP services, wired
(cable) audio and video programming
distribution, and wired broadband
internet services. By exception,
establishments providing satellite
television distribution services using
facilities and infrastructure that they
operate are included in this
21 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ available at https://
www.sba.gov/sites/default/files/advocacy/SB-FAQ2016_WEB.pdf.
22 5 U.S.C. 601(4).
23 5 U.S.C. 601(5).
24 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ available at https://
www.sba.gov/sites/default/files/advocacy/SB-FAQ2016_WEB.pdf.
25 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://fact
finder.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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industry.’’ 26 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.27 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.28 Thus, under this
size standard, the majority of firms in
this industry can be considered small.
7. Local Exchange Carriers (LECs).
Neither the Commission nor the SBA
has developed a size standard for small
businesses specifically applicable to
local exchange services. The closest
applicable NAICS code category is for
Wired Telecommunications Carriers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.29 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.30 The
Commission estimates that most
providers of local exchange service are
small entities that may be affected by
the rules proposed in the FNPRM.
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
employees.31 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.32
According to Commission data, 1,307
carriers reported that they were
incumbent local exchange service
providers.33 Of this total of 1,307
incumbent local exchange service
providers, an estimated 1,006 operated
with 1,500 or fewer employees.34
Consequently, the Commission
estimates that most providers of
26 See https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
27 See 13 CFR 120.201, NAICS code 517110.
28 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pi=ECN_
2012_US_51SSSZ5&prodType=table.
29 13 CFR 121.201, NAICS code 517110.
30 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pi=ECN_
2012_US_51SSSZ5&prodType=table.
31 13 CFR 121.201, NAICS code 517110.
32 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5prodType=table.
33 See Trends in Telephone Service, Federal
Communications Commission, Wireline
Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (Sept. 2010)
(Trends in Telephone Service).
34 See id.
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incumbent local exchange service are
small businesses that may be affected by
the rules proposed in this Further
Notice.
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.35 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.36 Based on this data, the
Commission concludes that the majority
of Competitive LECs, CAPs, SharedTenant 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.37
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.38 Also,
72 carriers have reported that they are
Other Local Service Providers.39 Of this
total, 70 have 1,500 or fewer
employees.40 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 FNPRM.
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.41 U.S.
Census data for 2012 indicate that 3,117
firms operated during that year. Of that
number, 3,083 operated with fewer than
35 13
CFR 121.201, NAICS code 517110.
36 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
37 See Trends in Telephone Service, at Table 5.3.
38 Id.
39 Id.
40 Id.
41 13 CFR 121.201, NAICS code 517110.
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1,000 employees.42 According to
Commission data, 359 companies
reported that their primary
telecommunications service activity was
the provision of interexchange
services.43 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 FNPRM
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.44 Under the applicable SBA
size standard, such a business is small
if it has 1,500 or fewer employees.45
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.46 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.47 All 193 carriers
have 1,500 or fewer employees.48
Consequently, the Commission
estimates that the majority of prepaid
calling card providers are small entities
that may be affected by rules proposed
in this FNPRM.
12. Local Resellers. Neither the
Commission nor the SBA has developed
a small business size standard
specifically for Local Resellers. The SBA
42 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=
ECN_2012_US_51SSSZ5&prodType=table.
43 See Trends in Telephone Service, at Table 5.3.
44 https://www.census.gov/cgi-bin/ssd/naics/
naicsrch.
45 13 CFR 121.201, NAICS code 517911.
46 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=
ECN_2012_US_51SSSZ5&prodType=table.
47 See Trends in Telephone Service, at Table 5.3.
48 Id.
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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.49 Census data for 2012 show
that 1,341 firms provided resale services
during that year. 50 Of that number,
1,341 operated with fewer than 1,000
employees.51 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.52 Of this total, an estimated
211 have 1,500 or fewer employees.53
Consequently, the Commission
estimates that the majority of local
resellers are small entities that may be
affected by rules proposed in this
Further Notice.
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.54 Under that size standard,
such a business is small if it has 1,500
or fewer employees.55 Census data for
2012 show that 1,341 firms provided
resale services during that year.56 Of
that number, 1,341 operated with fewer
than 1,000 employees.57 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.58 Of this total, an estimated
857 have 1,500 or fewer employees.59
Consequently, the Commission
estimates that the majority of toll
resellers are small entities that may be
affected by the rules proposed in the
FNPRM.
14. Other Toll Carriers. Neither the
Commission nor the SBA has developed
a size standard for small businesses
49 13
CFR 121.201, NAICS code 517911.
50 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
51 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
52 See Trends in Telephone Service, at Table 5.3.
53 Id.
54 13 CFR 121.201, NAICS code 517911.
55 Id.
56 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
57 Id.
58 Trends in Telephone Service, at Table 5.3.
59 Id.
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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.60 Census data for 2012
shows that there were 3,117 firms that
operated that year.61 Of this total, 3,083
operated with fewer than 1,000
employees.62 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.63 Of
these, an estimated 279 have 1,500 or
fewer employees.64 Consequently, the
Commission estimates that most Other
Toll Carriers are small entities that may
be affected by the rules proposed in the
FNPRM
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.65 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.66 Of this total, 955 firms had
fewer than 1,000 employees.67 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
60 13
CFR 121.201, NAICS code 517110.
61 https://factfinder.census.gov/faces/table
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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.68 Of this total, an estimated
261 have 1,500 or fewer employees.69
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 FNPRM.
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.’’ 70 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.71 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
1,383.72 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.73 We therefore
estimate that the majority of commercial
television broadcasters are small
entities.
17. In assessing whether a business
concern qualifies as small under the
above definition, business (control)
affiliations 74 must be included. Our
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
62 Id.
63 Trends in Telephone Service, at Table 5.3.
64 Id.
65 NAICS code 517210. See https://
www.census.gov/cgi-bin/ssd/naics/naiscsrch.
66 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
67 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType;=table.
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68 Trends
in Telephone Service, at Table 5.3.
69 Id.
70 U.S. Census Bureau, 2012 NAICS code
Economic Definitions, https://www.census.gov.cgibin/sssd/naics/naicsrch.
71 13 CFR 121.201, NAICS code 515120.
72 See FCC News Release, ‘‘Broadcast Station
Totals as of March 31, 2017,’’ April 11, 2017;
https://;apps.fcc.gov/edocs_public/attachmatch/
DOC-344256A1.pdf.
73 We recognize that BIA’s estimate differs
slightly from the FCC total given supra.
74 ‘‘[Business concerns] are affiliates of each other
when one concern controls or has the power to
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50603
estimate, therefore, likely overstates the
number of small entities that might be
affected by our action, because the
revenue figure on which it is based does
not include or aggregate revenues from
affiliated companies. In addition, an
element of the definition of ‘‘small
business’’ is that the entity not be
dominant in its field of operation. We
are unable at this time to define or
quantify the criteria that would
establish whether a specific television
station is dominant in its field of
operation. Accordingly, the estimate of
small businesses to which rules may
apply does not exclude any television
station from the definition of a small
business on this basis and is therefore
possibly over-inclusive to that extent.
18. In addition, the Commission has
estimated the number of licensed
noncommercial educational (NCE)
television stations to be 396.75 These
stations are non-profit, and therefore
considered to be small entities.76 There
are also 2,528 low power television
stations, including Class A stations
(LPTV).77 Given the nature of these
services, we will presume that all LPTV
licensees qualify as small entities under
the above SBA small business size
standard.
19. Radio Broadcasting. This
Economic Census category ‘‘comprises
establishments primarily engaged in
broadcasting aural programs by radio to
the public. Programming may originate
in their own studio, from an affiliated
network, or from external sources.’’ 78
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.79 U.S.
Census data for 2012 show that 2,849
radio station firms operated during that
year.80 Of that number, 2,806 operated
with annual receipts of less than $25
million per year.81 According to
Commission staff review of BIA
Advisory Services, LLC’s Media Access
control the other or a third party or parties controls
or has to power to control both.’’ 13 CFR
21.103(a)(1).
75 See FCC News Release, ‘‘Broadcast Station
Totals as of March 31, 2017,’’ April 11, 2017;
https://apps.fcc.gov/edocs_public/attachmatch/
DOC-344256A1.pdf.
76 See generally 5 U.S.C. 601(4), (6).
77 See FCC News Release, ‘‘Broadcast Station
Totals as of March 31, 2017,’’ April 11, 2017;
https://apps.fcc.gov/edocs_public/attachmatch/
DOC-344256A1.pdf.
78 https://www.census.gov.cgi-bin/sssd/naics/
naicsrch.
79 13 CFR 121.201, NAICS code 515112.
80 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
81 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
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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.
20. In assessing whether a business
concern qualifies as small under the
above size standard, business
affiliations must be included.82 In
addition, to be determined to be a
‘‘small business,’’ the entity may not be
dominant in its field of operation.83 It is
difficult at times to assess these criteria
in the context of media entities, and our
estimate of small businesses may
therefore be over-inclusive.
21. Cable Television and Other
Subscription Programming. 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 directto-home satellite systems, for
transmission to viewers.84 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.85 Of this
total, 319 operated with annual receipts
of less than $25 million.86 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 FNPRM.
22. Cable Companies and Systems.
The Commission has developed its own
small business size standards for cable
rate regulation. Under the Commission’s
rules, a ‘‘small cable company’’ is one
serving 400,000 or fewer subscribers
nationwide.87 Industry data indicate
that there are currently 4,413 active
82 ‘‘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).
83 13 CFR 121.102(b) (an SBA regulation).
84 https://www.census.gov.cgi-bin/sssd/naics/
naicsrch.
85 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ5&prodType=table.
86 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US–51SSSZ5&prodType=Table.
87 47 CFR 76.901(e).
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cable systems in the United States.88 Of
this total, all but ten cable operators
nationwide are small under the 400,000subscriber size standard.89 In addition,
under the Commission’s rate regulation
rules, a ‘‘small system’’ is a cable system
serving 15,000 or fewer subscribers.90
Current Commission records show 4,413
cable systems nationwide.91 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.92 Thus, under this
standard as well, the Commission
estimates that most cable systems are
small entities.
23. Cable System Operators (Telecom
Act Standard). The Communications
Act 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.’’ 93
There are approximately 53 million
cable video subscribers in the United
States today.94 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.95 Based on available data,
we find that all but nine incumbent
cable operators are small entities under
this size standard.96 The Commission
neither requests nor collects information
on whether cable system operators are
affiliated with entities whose gross
annual revenues exceed $250 million.97
Although it seems certain that some of
these cable system operators are
affiliated with entities whose gross
88 See Eighteenth Competition Report, 32 FCC
Rcd at 584, para. 39 (citing the Commission’s Cable
Operations and Licensing Systems (COALS)
database).
89 See https://www.snl.com/web/client?auth=
inherit#industry/topCableMSOs (last visited July
18, 2017).
90 47 CFR 76.901(c).
91 See footnote 2, supra.
92 August 5, 2015 report from the Media Bureau
based on its research in COALS. See www.fcc.gov/
coals.
93 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
94 See NCTA Industry Data, Cable’s Customer
Base, available at https://www.ncta.com/industrydata (last visited July 6, 2017).
95 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
96 See https://www.snl.com/web/client?
auth=inherit#industry/topCableMSOs (last visited
July 18, 2017).
97 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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annual revenues exceed $250,000,000,
we are unable at this time to estimate
with greater precision the number of
cable system operators that would
qualify as small cable operators under
the definition in the Communications
Act.
24. Direct Broadcast Satellite (DBS)
Service. DBS Service is a nationally
distributed subscription service that
delivers video and audio programming
via satellite to a small parabolic dish
antenna at the subscriber’s location.
DBS is now included in SBA’s
economic census category ‘‘Wired
Telecommunications Carriers.’’ The
Wired Telecommunications Carriers
industry comprises establishments
primarily engaged in operating and/or
providing access to transmission
facilities and infrastructure that they
own and/or lease for the transmission of
voice, data, text, sound, and video using
wired telecommunications networks.
Transmission facilities may be based on
a single technology or combination of
technologies. Establishments in this
industry use the wired
telecommunications network facilities
that they operate to provide a variety of
services, such as wired telephony
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.98
The SBA determines that a wireline
business is small if it has fewer than
1500 employees.99 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.100 Based on that
data, we conclude that the majority of
wireline firms are small under the
applicable standard. However, only two
entities provide DBS service, AT&T and
DISH Network. AT&T and DISH
Network each report annual revenues
that are in excess of the threshold for a
small business. Accordingly, we
conclude that DBS service is provided
only by large firms.
25. All Other Telecommunications.
‘‘All Other Telecommunications’’ is
defined as follows: This U.S. industry is
comprised of establishments that are
primarily engaged in providing
specialized telecommunications
services, such as satellite tracking,
98 https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
99 NAICs code 517110; 13 CFR 121.201.
100 https://factfinder.census.gov/faces/table
services.jasf/pages/productview.xhtml?pid+ECN_
2012_US.51SSSZ4&prodType=table.
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communications telemetry, and radar
station operation. This industry also
includes establishments primarily
engaged in providing satellite terminal
stations and associated facilities
connected with one or more terrestrial
systems and capable of transmitting
telecommunications to, and receiving
telecommunications from, satellite
systems. Establishments providing
Internet services or Voice over Internet
Protocol (VoIP) services via clientsupplied telecommunications
connections are also included in this
industry.101 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.102 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.103 Thus, a majority of ‘‘All
Other Telecommunications’’ firms
potentially affected by the proposals in
the Notice can be considered small.
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.104 Although RespOrgs are
often wireline carriers, they can also
include non-carrier entities. Therefore,
in the definition herein of RespOrgs,
two categories are presented, i.e., Carrier
RespOrgs and Non-Carrier RespOrgs.
27. Carrier RespOrgs. Neither the
Commission, the U.S. Census, nor the
SBA have developed a definition for
Carrier RespOrgs. Accordingly, the
Commission believes that the closest
NAICS code-based definitional
categories for Carrier RespOrgs are
Wired Telecommunications Carriers,105
and Wireless Telecommunications
Carriers (except satellite).106
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
101 https://www.census.gov/cgi-bin/ssssd/naics/
naicsrch.
102 13 CFR 121.201; NAICs code 517919.
103 https://factfinder.census.gov/faces/table
services.jasf/pages/productview.xhtml?pid+ECN_
2012_US.51SSSZ4&prodType=table.
104 See 47 CFR 52.101(b).
105 13 CFR 121.201, NAICS code 517110.
106 Id.
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Jkt 244001
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.107 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.108 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.109 Based on
that data, we conclude that most Carrier
RespOrgs that operated with wirelinebased technology are small.
29. The U.S. Census Bureau defines
Wireless Telecommunications Carriers
(except satellite) as establishments
engaged in operating and maintaining
switching and transmission facilities to
provide communications via the
airwaves, such as cellular services,
paging services, wireless internet access,
and wireless video services.110 The
appropriate size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.111
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.112 Based on that data, we
conclude that the majority of Carrier
RespOrgs that operated with wirelessbased technology are small.
30. Non-Carrier RespOrgs. Neither the
Commission, the 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’’ 113 and ‘‘Other
Management Consulting Services.’’ 114
107 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
108 13 CFR 120,201, NAICS code 517110.
109 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ4&prodType=table.
110 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
111 13 CFR 120.201, NAICS code 517120.
112 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ4&prodType=table.
113 13 CFR 120.201, NAICS code 541890.
114 13 CFR 120.201, NAICS code 541618.
PO 00000
Frm 00025
Fmt 4702
Sfmt 4702
50605
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).115 The
SBA has established a size standard for
this industry as annual receipts of $15
million dollars or less.116 Census data
for 2012 show that 5,804 firms operated
in this industry for the entire year. Of
that number, 5,249 operated with
annual receipts of less than $10
million.117 Based on that data we
conclude that the majority of NonCarrier RespOrgs who provide toll-free
number (TFN)-related advertising
services are small.
32. The U.S. Census defines Other
Management Consulting Services as
establishments primarily engaged in
providing management consulting
services (except administrative and
general management consulting; human
resources consulting; marketing
consulting; or process, physical
distribution, and logistics consulting).
Establishments providing
telecommunications or utilities
management consulting services are
included in this industry.118 The SBA
has established a size standard for this
industry of $15 million dollars or
less.119 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.120 Based on this data,
we conclude that a majority of noncarrier RespOrgs who provide TFNrelated management consulting services
are small.121
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
115 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
116 13 CFR 120.201, NAICS code 541890.
117 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ4&prodType=table.
118 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
119 13 CFR 120.201, NAICS code 514618.
120 https://factfinder.census.gov/faces/table
services/jsf/pages/productview.xhtml?pid=ECN_
2012_US_51SSSZ4&prodType=table.
121 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.
E:\FR\FM\01NOP1.SGM
01NOP1
50606
Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Proposed Rules
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.
sradovich on DSK3GMQ082PROD with PROPOSALS
B. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
34. This FNPRM does not propose any
changes to the Commission’s current
information collection, reporting,
recordkeeping, or compliance
requirements.
C. 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.122
36. The FNPRM seeks comment
regarding: (1) Adopting a new fivetiered flat rate methodology for
assessing regulatory fees for terrestrial
and satellite international bearer circuits
(IBCs), revising the current five-tiered
methodology for submarine cable
systems, and adopting a new fee
category for all holders of section 214
international authority and (2) revising
the calculation for cable television
‘‘Bulk Rate Customers.’’ The proposals
to adopt a flat five-tier methodology for
terrestrial and satellite IBCs might
provide relief to smaller entities that
would fall into the lowest tier. The
proposal to revise the calculation for
Bulk Rate Customers for cable
television, in multiple dwelling units
(MDUs), may affect small cable
operators who provide service to MDUs.
We are seeking comment on this issue
so that we can improve the calculation
of customers in MDUs.
D. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rules
37. None.
122 5
U.S.C. 603(c)(1) through (c)(4).
VerDate Sep<11>2014
17:05 Oct 31, 2017
Jkt 244001
IV. 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 Further
Notice of Proposed Rulemaking is
hereby adopted.
Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer, Office of the
Secretary.
[FR Doc. 2017–23215 Filed 10–31–17; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
50 CFR Part 17
[Docket No. FWS–R8–ES–2016–0127;
FXES11130900000 167 FF09E42000]
RIN 1018–BB39
Endangered and Threatened Wildlife
and Plants; Removing Trichostema
austromontanum ssp. compactum
(Hidden Lake Bluecurls) From the
Federal List of Endangered and
Threatened Plants
Fish and Wildlife Service,
Interior.
ACTION: Proposed rule; reopening of the
comment period.
AGENCY:
We, the U.S. Fish and
Wildlife Service (Service), announce
that we are reopening the comment
period for the proposed rule to remove
the plant Trichostema austromontanum
ssp. compactum (Hidden Lake
bluecurls) from the Federal List of
Endangered and Threatened Plants on
the basis of recovery. We are reopening
the comment period for this proposed
rule for 30 days in order to publish a
legal notice and to give all interested
parties further opportunity to comment
on the proposed rule. Comments
previously submitted need not be
resubmitted, as they will be fully
considered in preparing the final
delisting determination.
DATES: The comment period on the
proposed rule that published January 5,
2017 (82 FR 1297), is reopened. We will
accept comments received or
postmarked on or before December 1,
2017.
SUMMARY:
Comment submission: You
may submit comments by one of the
following methods:
(1) Electronically: Go to the Federal
eRulemaking Portal: https://
www.regulations.gov. In the Search box,
enter FWS–R8–ES–2016–0127, which is
ADDRESSES:
PO 00000
Frm 00026
Fmt 4702
Sfmt 4702
the docket number for this rulemaking.
Then click on the Search button. On the
resulting page, in the Search panel on
the left side of the screen, under the
Document Type heading, click on the
Proposed Rules link to locate this
document. You may submit a comment
by clicking on ‘‘Comment Now!’’.
(2) By hard copy: Submit by U.S. mail
or hand-deliver to: Public Comments
Processing, Attn: Docket No. FWS–R8–
ES–2016–0127, U.S. Fish and Wildlife
Service, MS: BPHC; 5275 Leesburg Pike,
Falls Church, VA 22041–3803. We
request that you send comments only by
the methods described above. We will
post all comments on https://
www.regulations.gov. This generally
means that we will post any personal
information you provide us.
Document availability: A copy of the
draft post-delisting monitoring plan
referenced throughout the proposed rule
can be viewed at https://ecos.fws.gov/
ecp0/profile/speciesProfile?sId=1285, at
https://www.regulations.gov under
Docket No. FWS–R8–ES–2016–0127, or
at the Carlsbad Fish and Wildlife
Office’s Web site at https://www.fws.gov/
Carlsbad/.
FOR FURTHER INFORMATION CONTACT: G.
Mendel Stewart, Field Supervisor,
Carlsbad Fish and Wildlife Office, 2177
Salk Avenue, Suite 250, Carlsbad, CA
92008; telephone 760–431–9440;
facsimile (fax) 760–431–5901. If you use
a telecommunications device for the
deaf (TDD), call the Federal Relay
Service at 800–877–8339.
SUPPLEMENTARY INFORMATION: On
January 5, 2017, we published a
proposed rule to remove the plant
Trichostema austromontanum ssp.
compactum (Hidden Lake bluecurls)
from the Federal List of Endangered and
Threatened Plants on the basis of
recovery (82 FR 1297). We sought
information, data, and comments from
the public regarding the proposal for 60
days, ending March 6, 2017. We are
reopening the comment period on the
proposed rule for an additional 30 days
(see DATES). We will accept written
comments and information during this
reopened comment period. Please refer
to the proposed rule for more
information on our proposed action and
the specific information we seek.
You may submit your comments and
materials by one of the methods listed
in ADDRESSES. Before including your
address, phone number, email address,
or other personal identifying
information in your comment, you
should be aware that your entire
comment—including your personal
identifying information—may be made
publicly available at any time. All
E:\FR\FM\01NOP1.SGM
01NOP1
]]>Agencies
[Federal Register Volume 82, Number 210 (Wednesday, November 1, 2017)]
[Proposed Rules]
[Pages 50598-50606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-23215]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket Nos. 17-134; FCC 17-111]
Assessment and Collection of Regulatory Fees for Fiscal Year 2017
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) seeks further comment on the appropriate tiers for
calculating terrestrial and satellite international bearer circuit
fees, and the methodology by which cable television subscribers in
multiple dwelling units (MDUs) are calculated.
DATES: Comments are due on or before December 1, 2017 and reply
comments are due on or before December 18, 2017.
ADDRESSES: You may submit comments, identified by MD Docket No. 17-134,
by any of the following methods listed in the Comment Filing Procedures
section below.
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
Further Notice of Proposed Rulemaking (FNPRM), FCC 17-111, MD Docket
No. 17-134 adopted on September 1, 2017 and released on September 5,
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
[[Page 50599]]
these formats may contact the FCC by email: [email protected] or phone:
202-418-0530 or TTY: 202-418-0432.
I. Procedural Matters
A. Ex Parte Rules Permit-But-Disclose Proceeding
1. This Further Notice of Proposed Rulemaking (FY 2017 FNPRM) shall
be treated as a ``permit-but-disclose'' proceeding in accordance with
the Commission's ex parte rules. Persons making ex parte presentations
must file a copy of any written presentation or a memorandum
summarizing any oral presentation within two business days after the
presentation (unless a different deadline applicable to the Sunshine
period applies). Persons making oral ex parte presentations are
reminded that memoranda summarizing the presentation must list all
persons attending or otherwise participating in the meeting at which
the ex parte presentation was made, and summarize all data presented
and arguments made during the presentation. If the presentation
consisted in whole or in part of the presentation of data or arguments
already reflected in the presenter's written comments, memoranda, or
other filings in the proceeding, the presenter may provide citations to
such data or arguments in his or her prior comments, memoranda, or
other filings (specifying the relevant page and/or paragraph numbers
where such data or arguments can be found) in lieu of summarizing them
in the memorandum. Documents shown or given to Commission staff during
ex parte meetings are deemed to be written ex parte presentations and
must be filed consistent with Sec. 1.1206(b). In proceedings governed
by Sec. 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 Sec. Sec. 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 9050 Junction Drive,
Annapolis Junction, MD 20701.
[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 [email protected] 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 [email protected] 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 Further Notice of Proposed Rulemaking, we seek further
comment on the appropriate tiers for calculating terrestrial and
satellite international bearer circuit fees raised in the FY 2016 NPRM
and the FY 2017 NPRM and the methodology for calculating cable
television subscribers in multiple dwelling units (MDUs) raised in the
FY 2008 FNPRM.\1\
---------------------------------------------------------------------------
\1\ FY 2008 FNPRM, 73 FR 50285, 50290 at paragraphs 27-28.
---------------------------------------------------------------------------
A. International Bearer Circuits
8. We seek further comment on this issue to have a more
comprehensive record for adopting a new flat rate methodology for
terrestrial and satellite IBCs and to revise the tiers for submarine
cable systems. We also seek comment on the proposal to adopt a
regulatory fee for all holders of section 214 international
authorizations.
9. In the Submarine Cable Order, the Commission adopted a tiered
system using gigabits per second (Gbps)
[[Page 50600]]
increments (instead of 64 kbps \2\). The tiers adopted for submarine
cable systems at that time were as follows: ``large'' systems, 20 Gbps
or more, paying one payment unit each; systems with capacity equal to
or greater than 10 Gbps but less than 20 Gbps, paying 50 percent of a
payment unit; systems with capacity equal to or greater than 5 Gbps but
less than 10 Gbps, paying 25 percent of a payment unit; systems with
capacity equal to or greater than 2.5 Gbps but less than 5 Gbps, paying
12.5 percent of a payment unit; and systems with capacity below 2.5
Gbps paying 6.25 percent of a payment unit.\3\
---------------------------------------------------------------------------
\2\ Sixty-four Kbps is the unit of measurement for voice grade
circuits; submarine cable, terrestrial, and satellite international
bearer circuits are now largely used for data.
\3\ Submarine Cable Order, 74 FR 22104, 22107 at paragraph 16
(May 12, 2009).
---------------------------------------------------------------------------
10. We propose revising the tiers for submarine cable systems. We
recognize that since we adopted the current tiers for submarine cable
systems, the subsequent growth in the industry has moved all but two
systems to the highest tier. We seek comment on whether we should
revise the tiers. For example, we could adopt the following: Systems
with capacity of 10,000 Gbps or more, paying 16 payment units each;
systems with capacity equal to or greater than 5,000 Gbps but less than
10,000 Gbps, paying eight payment units; systems with capacity equal to
or greater than 2,500 Gbps but less than 5,000 Gbps, paying four
payment units; systems with capacity equal to or greater than 1,000
Gbps but less than 2,500 Gbps, paying two payment units; and systems
with capacity below 1,000 Gbps paying one payment unit. We seek comment
on this proposal.
11. We also propose adopting, for terrestrial and satellite IBCs,
the same five tiers used for submarine cable systems. Level 3 contends
that two tiers would be sufficient for terrestrial and satellite IBCs
to ensure that larger carriers pay a fair amount and to avoid being a
barrier to entry for new providers.\4\ AT&T opposes a two-tiered
approach, contending that the disparities between the volumes of
circuits held by different operators may be too large to structure a
reasonable and fair system.\5\ We seek comment on whether we should
adopt the same tiers for common carrier and non-common carrier
terrestrial and satellite IBCs. Commenters proposing different tiers,
including fewer or greater numbers of tiers, should explain how their
proposals would be more equitable.
---------------------------------------------------------------------------
\4\ Level 3 June 29, 2017 ex parte at 1.
\5\ AT&T Reply Comments at 3.
---------------------------------------------------------------------------
12. In its comments, the Coalition suggested that the Commission
should adopt a fee methodology based on flat fee from every holder of
an international section 214 authorization.\6\ We seek further comment
on this approach. Should a flat fee based on holding an international
section 214 authorization replace only the terrestrial and satellite
IBCs regulatory fees, with submarine cable IBCs continuing to be
assessed on holding a cable landing license, or should it replace all
IBC regulatory fees (i.e., terrestrial, satellite and submarine cable)?
Would a flat fee on an international section 214 authorization reduce
administrative burdens in collecting the IBC fee? The Coalition states
that there are approximately 7,000 current international section 214
authorizations,\7\ but CTIA notes that many of those are held by
companies that do not actually provide international service and many
companies hold multiple authorizations.\8\ We seek comment on whether a
fee should be applied to every holder of an international section 214
authorization regardless of the number of international section 214
authorizations held. Alternatively, should a set fee be applied to
every international section 214 authorization? We also seek comment on
whether there should be a different fee based on whether the
international section 214 authorization is for resale only or for
facilities-based services. We seek comment on whether a fee based on
international section 214 authorizations should be calibrated based on
size. For example, should there be one fee for resale, another up to a
certain number of circuits, and a larger fee for any circuits above
that amount? We seek comment on CITA's assertion that there are no
additional, ongoing costs associated with international section 214
authorizations that are not already covered by the application fees.\9\
We seek comment on whether a fee applied to each section 214
authorization holder would capture most carriers that provide non-
common carrier services or are there a number of carriers that provide
only non-common carrier international services?
---------------------------------------------------------------------------
\6\ Coalition Comments at 8-10.
\7\ Coalition Comments at 9.
\8\ CTIA Reply at 8.
\9\ CTIA Reply at 9.
---------------------------------------------------------------------------
B. Cable Television Services--Calculation of Number of Subscribers
13. In the FY 2008 FNPRM, the Commission sought comment on the bulk
rate calculation for determining the number of subscribers in a
multiple dwelling unit or MDU.\10\ The methodology for calculating the
number of cable subscribers has since been the following:
---------------------------------------------------------------------------
\10\ FY 2008 Further Notice of Proposed Rulemaking, 73 FR 50285,
50290 at paragraphs 27-28, August 26, 2008, (FY 2008 Further
Notice).
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 [year], rather than on a count as of December 31,
[year].\11\
---------------------------------------------------------------------------
\11\ This is essentially the same methodology we sought comment
on in the FY 2008 FNPRM.
14. We recognize that the cable television industry has evolved
significantly and the bulk rate calculation may not be reasonable or
feasible today because of the many services offered today by cable
providers. Specifically, with offerings of different packages and
bundles, it may no longer be feasible to use a bulk rate calculation.
Commenters should discuss if they use the bulk rate calculation or if
they separately count each subscriber, even those living in MDUs.
15. We seek comment on whether we should keep the bulk rate
calculation, or alternatively, whether we should modify the methodology
to more accurately calculate the numbers of subscribers in a MDU. We
seek comment on whether we should eliminate the bulk rate calculation
due to changes in today's cable market.
III. Initial Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\12\ 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 Further
Notice of Proposed Rulemaking (FNPRM). 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 Further Notice. The
Commission will send a copy of the Further Notice, including the IRFA,
to the Chief Counsel for Advocacy of the Small Business Administration
(SBA).\13\
[[Page 50601]]
In addition, the FNPRM and IRFA (or summaries thereof) will be
published in the Federal Register.\14\
---------------------------------------------------------------------------
\12\ 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 Number 104-121, Title II, 110 Stat. 847 (1996).
\13\ 5 U.S.C. 603(a).
\14\ Id.
---------------------------------------------------------------------------
A. Need for, and Objectives of, the Further Notice
2. The FNPRM seeks comment regarding (1) adopting a new five-tiered
flat rate methodology for assessing regulatory fees for terrestrial and
satellite international bearer circuits (IBCs), revising the tiers for
submarine cable systems, and adopting a new fee category for all
holders of section 214 international authority and (2) revising the
calculation for cable television ``Bulk Rate Customers.''
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.\15\
---------------------------------------------------------------------------
\15\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
---------------------------------------------------------------------------
A. 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.\16\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \17\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\18\ 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.\19\
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\16\ 5 U.S.C. 603(b)(3).
\17\ 5 U.S.C. 601(6).
\18\ 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.''
\19\ 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.\20\ As of 2009, small businesses represented 99.9
percent of the 27.5 million businesses in the United States, according
to the SBA.\21\ In addition, a ``small organization is generally any
not-for-profit enterprise which is independently owned and operated and
not dominant in its field.\22\ 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.'' \23\ U.S.
Census Bureau data for 2011 indicate that there were 90,056 local
governmental jurisdictions in the United States.\24\ We estimate that,
of this total, as many as 89,327 entities may qualify as ``small
governmental jurisdictions.'' \25\ Thus, we estimate that most local
government jurisdictions are small.
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\20\ See 5 U.S.C. 601(3) through (6).
\21\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
\22\ 5 U.S.C. 601(4).
\23\ 5 U.S.C. 601(5).
\24\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
\25\ 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.'' \26\ 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.\27\ 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.\28\ Thus, under
this size standard, the majority of firms in this industry can be
considered small.
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\26\ See https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\27\ See 13 CFR 120.201, NAICS code 517110.
\28\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pi=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.\29\ 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.\30\ The Commission estimates that most
providers of local exchange service are small entities that may be
affected by the rules proposed in the FNPRM.
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\29\ 13 CFR 121.201, NAICS code 517110.
\30\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pi=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 employees.\31\ 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.\32\ According to Commission
data, 1,307 carriers reported that they were incumbent local exchange
service providers.\33\ Of this total of 1,307 incumbent local exchange
service providers, an estimated 1,006 operated with 1,500 or fewer
employees.\34\ Consequently, the Commission estimates that most
providers of
[[Page 50602]]
incumbent local exchange service are small businesses that may be
affected by the rules proposed in this Further Notice.
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\31\ 13 CFR 121.201, NAICS code 517110.
\32\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5prodType=table.
\33\ See Trends in Telephone Service, Federal Communications
Commission, Wireline Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (Sept. 2010) (Trends in Telephone
Service).
\34\ 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.\35\ 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.\36\ 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.\37\ 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.\38\ Also, 72 carriers have reported that they are
Other Local Service Providers.\39\ Of this total, 70 have 1,500 or
fewer employees.\40\ 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 FNPRM.
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\35\ 13 CFR 121.201, NAICS code 517110.
\36\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\37\ See Trends in Telephone Service, at Table 5.3.
\38\ Id.
\39\ Id.
\40\ 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.\41\ 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.\42\ According to Commission data, 359 companies
reported that their primary telecommunications service activity was the
provision of interexchange services.\43\ 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 FNPRM
---------------------------------------------------------------------------
\41\ 13 CFR 121.201, NAICS code 517110.
\42\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\43\ See Trends in Telephone Service, at Table 5.3.
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11. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business size standard specifically for
prepaid calling card providers. The appropriate NAICS code category for
prepaid calling card providers is Telecommunications Resellers. This
industry comprises establishments engaged in purchasing access and
network capacity from owners and operators of telecommunications
networks and reselling wired and wireless telecommunications services
(except satellite) to businesses and households. Establishments in this
industry resell telecommunications; they do not operate transmission
facilities and infrastructure. Mobile virtual networks operators
(MVNOs) are included in this industry.\44\ Under the applicable SBA
size standard, such a business is small if it has 1,500 or fewer
employees.\45\ 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.\46\ 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.\47\ All 193 carriers have 1,500
or fewer employees.\48\ Consequently, the Commission estimates that the
majority of prepaid calling card providers are small entities that may
be affected by rules proposed in this FNPRM.
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\44\ https://www.census.gov/cgi-bin/ssd/naics/naicsrch.
\45\ 13 CFR 121.201, NAICS code 517911.
\46\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\47\ See Trends in Telephone Service, at Table 5.3.
\48\ Id.
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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.\49\ Census
data for 2012 show that 1,341 firms provided resale services during
that year. \50\ Of that number, 1,341 operated with fewer than 1,000
employees.\51\ 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.\52\ Of this total, an estimated 211 have 1,500 or fewer
employees.\53\ Consequently, the Commission estimates that the majority
of local resellers are small entities that may be affected by rules
proposed in this Further Notice.
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\49\ 13 CFR 121.201, NAICS code 517911.
\50\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\51\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\52\ See Trends in Telephone Service, at Table 5.3.
\53\ Id.
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13. Toll Resellers. The Commission has not developed a definition
for Toll Resellers. The closest NAICS code Category is
Telecommunications Resellers, and the SBA has developed a small
business size standard for the category of Telecommunications
Resellers.\54\ Under that size standard, such a business is small if it
has 1,500 or fewer employees.\55\ Census data for 2012 show that 1,341
firms provided resale services during that year.\56\ Of that number,
1,341 operated with fewer than 1,000 employees.\57\ 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.\58\ Of this total, an estimated
857 have 1,500 or fewer employees.\59\ Consequently, the Commission
estimates that the majority of toll resellers are small entities that
may be affected by the rules proposed in the FNPRM.
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\54\ 13 CFR 121.201, NAICS code 517911.
\55\ Id.
\56\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\57\ Id.
\58\ Trends in Telephone Service, at Table 5.3.
\59\ Id.
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14. Other Toll Carriers. Neither the Commission nor the SBA has
developed a size standard for small businesses
[[Page 50603]]
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.\60\ Census data
for 2012 shows that there were 3,117 firms that operated that year.\61\
Of this total, 3,083 operated with fewer than 1,000 employees.\62\
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.\63\ Of these, an estimated 279 have 1,500 or fewer
employees.\64\ Consequently, the Commission estimates that most Other
Toll Carriers are small entities that may be affected by the rules
proposed in the FNPRM
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\60\ 13 CFR 121.201, NAICS code 517110.
\61\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\62\ Id.
\63\ Trends in Telephone Service, at Table 5.3.
\64\ Id.
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15. Wireless Telecommunications Carriers (except Satellite). This
industry comprises establishments engaged in operating and maintaining
switching and transmission facilities to provide communications via the
airwaves. 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.\65\
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.\66\ Of this total, 955 firms had fewer than 1,000
employees.\67\ 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.\68\ Of this total, an
estimated 261 have 1,500 or fewer employees.\69\ 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 FNPRM.
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\65\ NAICS code 517210. See https://www.census.gov/cgi-bin/ssd/
naics/naiscsrch.
\66\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\67\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType;=table.
\68\ Trends in Telephone Service, at Table 5.3.
\69\ 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.'' \70\ 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.\71\ 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 1,383.\72\ 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.\73\ We therefore estimate
that the majority of commercial television broadcasters are small
entities.
---------------------------------------------------------------------------
\70\ U.S. Census Bureau, 2012 NAICS code Economic Definitions,
https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\71\ 13 CFR 121.201, NAICS code 515120.
\72\ See FCC News Release, ``Broadcast Station Totals as of
March 31, 2017,'' April 11, 2017; https://;apps.fcc.gov/edocs_public/attachmatch/DOC-344256A1.pdf.
\73\ We recognize that BIA's estimate differs slightly from the
FCC total given supra.
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17. In assessing whether a business concern qualifies as small
under the above definition, business (control) affiliations \74\ 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.
---------------------------------------------------------------------------
\74\ ``[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.\75\ These stations are non-profit, and therefore considered to be
small entities.\76\ There are also 2,528 low power television stations,
including Class A stations (LPTV).\77\ 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.
---------------------------------------------------------------------------
\75\ See FCC News Release, ``Broadcast Station Totals as of
March 31, 2017,'' April 11, 2017; https://apps.fcc.gov/edocs_public/attachmatch/DOC-344256A1.pdf.
\76\ See generally 5 U.S.C. 601(4), (6).
\77\ See FCC News Release, ``Broadcast Station Totals as of
March 31, 2017,'' April 11, 2017; https://apps.fcc.gov/edocs_public/attachmatch/DOC-344256A1.pdf.
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19. Radio Broadcasting. This Economic Census category ``comprises
establishments primarily engaged in broadcasting aural programs by
radio to the public. Programming may originate in their own studio,
from an affiliated network, or from external sources.'' \78\ 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.\79\
U.S. Census data for 2012 show that 2,849 radio station firms operated
during that year.\80\ Of that number, 2,806 operated with annual
receipts of less than $25 million per year.\81\ According to Commission
staff review of BIA Advisory Services, LLC's Media Access
[[Page 50604]]
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.
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\78\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\79\ 13 CFR 121.201, NAICS code 515112.
\80\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\81\ 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.\82\ In addition, to be determined to be a ``small business,''
the entity may not be dominant in its field of operation.\83\ It is
difficult at times to assess these criteria in the context of media
entities, and our estimate of small businesses may therefore be over-
inclusive.
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\82\ ``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).
\83\ 13 CFR 121.102(b) (an SBA regulation).
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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.\84\ 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.\85\ Of this total, 319 operated with
annual receipts of less than $25 million.\86\ 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 FNPRM.
---------------------------------------------------------------------------
\84\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\85\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\86\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=Table">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 cable rate regulation. Under the
Commission's rules, a ``small cable company'' is one serving 400,000 or
fewer subscribers nationwide.\87\ Industry data indicate that there are
currently 4,413 active cable systems in the United States.\88\ Of this
total, all but ten cable operators nationwide are small under the
400,000-subscriber size standard.\89\ In addition, under the
Commission's rate regulation rules, a ``small system'' is a cable
system serving 15,000 or fewer subscribers.\90\ Current Commission
records show 4,413 cable systems nationwide.\91\ 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.\92\ Thus, under
this standard as well, the Commission estimates that most cable systems
are small entities.
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\87\ 47 CFR 76.901(e).
\88\ See Eighteenth Competition Report, 32 FCC Rcd at 584, para.
39 (citing the Commission's Cable Operations and Licensing Systems
(COALS) database).
\89\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2017).
\90\ 47 CFR 76.901(c).
\91\ See footnote 2, supra.
\92\ August 5, 2015 report from the Media Bureau based on its
research in COALS. See www.fcc.gov/coals.
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23. Cable System Operators (Telecom Act Standard). The
Communications Act 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.'' \93\ There are approximately 53 million cable video
subscribers in the United States today.\94\ 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.\95\
Based on available data, we find that all but nine incumbent cable
operators are small entities under this size standard.\96\ The
Commission neither requests nor collects information on whether cable
system operators are affiliated with entities whose gross annual
revenues exceed $250 million.\97\ 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.
---------------------------------------------------------------------------
\93\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\94\ See NCTA Industry Data, Cable's Customer Base, available at
https://www.ncta.com/industry-data (last visited July 6, 2017).
\95\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\96\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2017).
\97\ 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 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.\98\ The SBA determines that a wireline business is small
if it has fewer than 1500 employees.\99\ 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.\100\ Based
on that data, we conclude that the majority of wireline firms are small
under the applicable standard. However, only two entities provide DBS
service, AT&T and DISH Network. AT&T and DISH Network each report
annual revenues that are in excess of the threshold for a small
business. Accordingly, we conclude that DBS service is provided only by
large firms.
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\98\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\99\ NAICs code 517110; 13 CFR 121.201.
\100\ https://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
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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,
[[Page 50605]]
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.\101\ 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.\102\ 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.\103\ Thus, a majority of ``All Other
Telecommunications'' firms potentially affected by the proposals in the
Notice can be considered small.
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\101\ https://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
\102\ 13 CFR 121.201; NAICs code 517919.
\103\ 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.\104\ 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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\104\ 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,\105\ and Wireless Telecommunications Carriers (except
satellite).\106\
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\105\ 13 CFR 121.201, NAICS code 517110.
\106\ 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.\107\ 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.\108\ 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.\109\ Based
on that data, we conclude that most Carrier RespOrgs that operated with
wireline-based technology are small.
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\107\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\108\ 13 CFR 120,201, NAICS code 517110.
\109\ 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.\110\
The appropriate size standard under SBA rules is that such a business
is small if it has 1,500 or fewer employees.\111\ 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.\112\
Based on that data, we conclude that the majority of Carrier RespOrgs
that operated with wireless-based technology are small.
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\110\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\111\ 13 CFR 120.201, NAICS code 517120.
\112\ 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'' \113\ and ``Other Management Consulting
Services.'' \114\
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\113\ 13 CFR 120.201, NAICS code 541890.
\114\ 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).\115\ The SBA has established a size standard for this
industry as annual receipts of $15 million dollars or less.\116\ Census
data for 2012 show that 5,804 firms operated in this industry for the
entire year. Of that number, 5,249 operated with annual receipts of
less than $10 million.\117\ 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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\115\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\116\ 13 CFR 120.201, NAICS code 541890.
\117\ 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.\118\ The SBA has established a size standard
for this industry of $15 million dollars or less.\119\ 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.\120\ Based on this data, we conclude that a majority
of non-carrier RespOrgs who provide TFN-related management consulting
services are small.\121\
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\118\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\119\ 13 CFR 120.201, NAICS code 514618.
\120\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
\121\ 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
[[Page 50606]]
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.
B. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
34. This FNPRM does not propose any changes to the Commission's
current information collection, reporting, recordkeeping, or compliance
requirements.
C. 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.\122\
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\122\ 5 U.S.C. 603(c)(1) through (c)(4).
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36. The FNPRM seeks comment regarding: (1) Adopting a new five-
tiered flat rate methodology for assessing regulatory fees for
terrestrial and satellite international bearer circuits (IBCs),
revising the current five-tiered methodology for submarine cable
systems, and adopting a new fee category for all holders of section 214
international authority and (2) revising the calculation for cable
television ``Bulk Rate Customers.'' The proposals to adopt a flat five-
tier methodology for terrestrial and satellite IBCs might provide
relief to smaller entities that would fall into the lowest tier. The
proposal to revise the calculation for Bulk Rate Customers for cable
television, in multiple dwelling units (MDUs), may affect small cable
operators who provide service to MDUs. We are seeking comment on this
issue so that we can improve the calculation of customers in MDUs.
D. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
37. None.
IV. 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 Further
Notice of Proposed Rulemaking is hereby adopted.
Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer, Office of the Secretary.
[FR Doc. 2017-23215 Filed 10-31-17; 8:45 am]
BILLING CODE 6712-01-P
