Assessment and Collection of Regulatory Fees for Fiscal Year 2018, 36460-36467 [2018-15651]
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Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations
proposed rulemaking and comment is
impracticable and contrary to the public
interest because consumers would be
negatively impacted by premium
changes should risk adjustment
payments be interrupted or confidence
in the program undermined.
There is also good cause to proceed
without notice and comment for the
additional reason that such procedures
are unnecessary here. HHS has received
and considered comments in issuing the
2014 through 2017 Payment Notices. In
each of these rulemaking processes,
parties had the opportunity to comment
on HHS’s use of statewide average
premium in the payment transfer
formula under the HHS-operated risk
adjustment methodology. Because this
final rule adopts the same HHS-operated
risk adjustment methodology issued in
the 2017 Payment Notice final rule, the
comments received in those
rulemakings are sufficiently current to
indicate a lack of necessity to engage in
further notice and comment. In the 2014
Payment Notice final rule, we received
a number of comments in support of our
proposal to use the statewide average
premium as the basis for risk adjustment
transfers. In subsequent benefit year
rulemakings, some commenters
expressed a desire for HHS to use a
plan’s own premium. HHS addressed
those comments by reiterating that we
had considered the use of a plan’s own
premium instead of the statewide
average premium and chose to use
statewide average premium. As this
approach supports the overall goal of
the risk adjustment program to
encourage issuers to rate for the average
risk in the applicable state market risk
pool, and avoids the creation of
incentives for issuers to operate less
efficiently, set higher prices, develop
benefit designs or create marketing
strategies to avoid high risk enrollees.
V. Collection of Information
Requirements
This document does not impose
information collection requirements,
that is, reporting, recordkeeping, or
third-party disclosure requirements.
Consequently, there is no need for
review by the Office of Management and
Budget under the authority of the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501, et seq.).
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VI. Regulatory Impact Analysis
A. Statement of Need
This final rule adopts the HHSoperated risk adjustment methodology
for the 2017 benefit year set forth in the
2017 Payment Notice final rule to
ensure that the risk adjustment program
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works as intended to protect consumers
from the effects of adverse selection and
premium increases due to issuer
uncertainty. The Premium Stabilization
Rule and previous Payment Notices
noted above provided detail on the
implementation of the risk adjustment
program, including the specific
parameters applicable for the 2017
benefit year.
B. Overall Impact
We have examined the impact of this
rule as required by Executive Order
12866 on Regulatory Planning and
Review (September 30, 1993), Executive
Order 13563 on Improving Regulation
and Regulatory Review (January 18,
2011), the Regulatory Flexibility Act
(RFA) (September 19, 1980, Pub. L. 96–
354), section 1102(b) of the Social
Security Act, section 202 of the
Unfunded Mandates Reform Act of 1995
(March 22, 1995; Pub. L. 104–4),
Executive Order 13132 on Federalism
(August 4, 1999), the Congressional
Review Act (5 U.S.C. 804(2), and
Executive Order 13771 on Reducing
Regulation and Controlling Regulatory
Costs. Executive Orders 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). A regulatory impact analysis
(RIA) must be prepared for major rules
with economically significant effects
($100 million or more in any one year).
OMB has determined that this final
rule is ‘‘economically significant’’
within the meaning of section 3(f)(1) of
Executive Order 12866, because it is
likely to have an annual effect of $100
million in any 1 year. In addition, for
the reasons noted above, OMB has
determined that this is a major rule
under the Congressional Review Act.
This final rule offers a further
explanation on budget neutrality and
the use of statewide average premium in
the risk adjustment payment transfer
formula when HHS is operating the
permanent risk adjustment program
established in section 1343 of the
PPACA on behalf of a state for the 2017
benefit year. We note that we previously
estimated transfers associated with the
risk adjustment program in the Premium
Stabilization Rule and the 2017
Payment Notice, and that the provisions
of this final rule do not change the risk
adjustment transfers previously
estimated under the HHS-operated risk
adjustment methodology established in
those final rules. The approximate risk
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adjustment transfers for the 2017 benefit
year are $5.179 billion. As such, we also
adopt the RIA in the 2017 Payment
Notice proposed and final rules.
Dated: July 23, 2018.
Seema Verma,
Administrator, Centers for Medicare &
Medicaid Services.
Dated: July 24, 2018.
Alex M. Azar II,
Secretary, Department of Health and Human
Services.
[FR Doc. 2018–16190 Filed 7–25–18; 4:15 pm]
BILLING CODE 4120–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 1
[MD Docket Nos. 18–175; FCC 18–65]
Assessment and Collection of
Regulatory Fees for Fiscal Year 2018
Federal Communications
Commission.
ACTION: Final action.
AGENCY:
In this document, the Federal
Communications Commission
(Commission) makes decisions
involving submarine cables,
international bearer circuits, and the
calculation of cable television
subscribers.
SUMMARY:
This final action is effective
August 29, 2018.
FOR FURTHER INFORMATION CONTACT:
Roland Helvajian, Office of Managing
Director at (202) 418–0444.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s FY 2018
Report and Order (FY 2018 Report and
Order), FCC 18–65, MD Docket No. 18–
175 adopted on May 21, 2018 and
released on May 22, 2018. 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 website, https://www.bcpi.com, or
call 1–800–378–3160. This document is
available in alternative formats
(computer diskette, large print, audio
record, and braille). Persons with
disabilities who need documents in
these formats may contact the FCC by
email: FCC504@fcc.gov or phone: 202–
418–0530 or TTY: 202–418–0432.
DATES:
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Federal Register / Vol. 83, No. 146 / Monday, July 30, 2018 / Rules and Regulations
I. Procedural Matters
A. Final Regulatory Flexibility Analysis
1. As required by the Regulatory
Flexibility Act of 1980 (RFA),1 the
Commission has prepared a Final
Regulatory Flexibility Analysis (FRFA)
relating to this Report and Order. The
FRFA is located towards the end of this
document.
B. Final Paperwork Reduction Act of
1995 Analysis
2. This document does not contain
new or modified information collection
requirements subject to the Paperwork
Reduction Act of 1995 (PRA), Public
Law 104–13. In addition, therefore, it
does not contain any new or modified
information collection burden for small
business concerns with fewer than 25
employees, pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 44 U.S.C.
3506(c)(4).
C. Congressional Review Act
3. The Commission will send a copy
of this Report & Order to Congress and
the Government Accountability Office
pursuant to the Congressional Review
Act, see 5 U.S.C. 801(a)(1)(A).
II. Introduction
In this Report and Order, we address
several regulatory fee issues raised in
the Further Notice of Proposed
Rulemaking that published after the
Commission’s FY 2017 Report and
Order.2 More specifically, in this Report
and Order, we (1) adopt new tiers for
calculating regulatory fees for
submarine cable systems; (2) decline to
adopt a new regulatory fee for
international section 214 authorizations;
and (3) retain the optional bulk rate
calculation for determining the number
of subscribers in multiple dwelling
units used in the calculation of cable
television regulatory fees.
III. Report and Order
A. Submarine Cable Regulatory Fees
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1. In 2009, the Commission adopted a
new methodology for calculating
1 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601–
612, has been amended by the Small Business
Regulatory Enforcement Fairness Act of 1996
(SBREFA), Public Law 104–121, Title II, 110 Stat.
847 (1996). The SBREFA was enacted as Title II of
the Contract with America Advancement Act of
1996 (CWAAA).
2 See generally Assessment and Collection of
Regulatory Fees for Fiscal Year 2017 (Final Rule),
82 FR 44322 (Sept. 22, 2017), 32 FCC Rcd 7057
(2017) (FY 2017 Report and Order) and Assessment
and Collection of Regulatory Fees for Fiscal Year
2017 (Further Notice of Proposed Rulemaking), 82
FR 50598 (Nov. 1, 2017), 32 FCC Rcd 7057 (2017)
(2017 FNPRM).
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4. Finally, while the Submarine Cable
Coalition contends that non-common
carrier submarine cable systems should
pay lower fees than common carriers,
we note that the Commission adopted a
competitively neutral methodology that
included both common carriers and
non-common carriers in the Submarine
Cable Order, based on a consensus
proposal from a group of operators,
including at least one member of the
Coalition, GU Holdings, Inc., an
indirect, wholly-owned subsidiary of
Google, Inc.8 The Coalition has not
provided any evidence to support its
claim that we should depart from this
competitively neutral methodology and
treat non-common carrier submarine
cable systems differently from common
carrier systems at this time.
submarine cable regulatory fees, based
on a proposal from the submarine cable
industry.3 The methodology adopted
was a tiered per-cable system, with
higher fees for larger systems and lower
fees for smaller systems. The
Commission concluded that the
methodology was in the public interest
and competitively neutral because it
included both common carriers and
non-common carriers; all entities with
cable landing licensees would be
required to pay this regulatory fee.4 At
that time, the Commission adopted a
five-tier system for the submarine cable
industry, but since that date the
subsequent growth in the industry has
moved all but two systems into the
highest tier.5 In the 2017 FNPRM, we
sought comment on revising the
regulatory fee tiers for submarine cable
systems.6 One commenter, the
Submarine Cable Coalition, generally
agrees with our proposal to revise the
existing tiers.7
2. We adjust the tiers proposed in the
2017 FNPRM to reflect capacity growth
since 2009 when the submarine cable
tiers were first established. Specifically,
the regulatory fee tiers for submarine
cable systems we adopt below add
higher thresholds to reflect capacity
growth in the industry. Based on this
increase in capacity, we believe the tiers
better capture varying types of
submarine cable operators.
• Systems with capacity equal to or
greater than 4,000 Gbps will now pay 16
payment units.
• Systems with capacity equal to or
greater than 1,000 Gbps but less than
4,000 Gbps will now pay 8 payment
units.
• Systems with capacity equal to or
greater than 250 Gbps but less than
1,000 Gbps will now pay 4 payment
units.
• Systems with capacity equal to or
greater than 50 Gbps but less than 250
Gbps, will pay 2 payment units.
• Systems with capacity less than 50
Gbps will pay 1 payment unit.
3. Under the revised regulatory fee
tiers we adopt today, we estimate that
approximately half of the submarine
cable systems will be in the bottom or
middle tiers, while the remaining
systems will be in the new highest tier.
The FCC will provide proposed rates for
submarine cable systems for FY 2018 in
future rulemaking.
5. In the 2017 FNPRM, the
Commission sought comment on a
proposal raised by the Submarine Cable
Coalition, that in lieu of regulatory fees
for international bearer circuits (IBCs),
we should assess a regulatory fee, based
on International Bureau FTEs, on every
holder of an international section 214
authorization.9 SIA supports replacing
the satellite IBC fee with a fee on each
international section 214 authorization
and contends that such a fee for all
entities with international section 214
authorizations would be appropriate
because the holders of international
section 214 authority are ‘‘directly
involved in international common
carrier services and benefit from
associated Commission regulation.
. . .’’ 10 The Submarine Cable Coalition
contends that adopting a flat fee for all
holders of international section 214
authorizations would be an efficient and
equitable methodology for assessing
regulatory fees.11
6. Other commenters oppose this
approach. CTIA argues that assessing a
fee based on international section 214
authorizations would change the basis
for the IBC fees, which is ownership and
use of international circuits, because
many international 214 authorization
holders only provide resold service and
do not have international facilities.12
AT&T agrees with CTIA and notes that
this approach would impose a new IBC
regulatory fee on hundreds of entities
3 Submarine Cable Order, 74 FR 22104 (May 12,
2009), 24 FCC Rcd at 4212–4216, paras. 7–18.
4 Id., 24 FCC Rcd at 4212–13, paras. 8–9.
5 FY 2017 Report and Order, 32 FCC Rcd at 7074,
para. 46.
6 2017 FNPRM, 32 FCC Rcd at 7074–75, para. 46.
7 Coalition Reply Comments at 3–4, 7–8.
8 Submarine Cable Order, 24 FCC Rcd at 4208,
para. 1 & note 3.
9 2017 FNPRM, 32 FCC Rcd at 7075, para. 48. This
proposal was from the Submarine Cable Coalition.
10 SIA Comments at 6.
11 Coalition Reply Comments at 3.
12 CTIA Comments at 2–3.
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B. International Bearer Circuits and
Section 214 Authorizations
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that do not currently pay IBC fees.13
These commenters also explain that
because only common carriers hold
international section 214 authorizations,
this approach would essentially reverse
our decision in the FY 2017 Report and
Order to include non-common carrier
terrestrial IBCs in the IBC regulatory fee
methodology.14 For example, AT&T
states that replacing all or part of the
IBC fee with a flat fee on international
section 214 authorizations would
‘‘effectively reverse the Commission’s
decisions to provide a competitively
neutral IBC fee structure.’’ 15
CenturyLink argues that entities holding
an international 214 authorization but
that do not have active international
circuits do not receive the benefits of
Commission international activities, and
therefore should not be subject to
regulatory fees.16 CTIA also states that
international section 214 applicants
already pay a $1,155 filing fee with each
application and there is no evidence of
other International Bureau costs
associated with international section
214 authorizations.17 Commenters also
note that such an approach would
present administrative difficulties since
many carriers have multiple
international 214 authorizations and can
surrender them if the Commission
adopted a per-international section 214
authorization regulatory fee.18
7. We decline to impose regulatory
fees on international section 214
authorizations in lieu of our existing
IBC regulatory fees for terrestrial and
satellite IBCs and submarine cable
systems. The record does not
demonstrate that this approach is
advantageous over the existing scheme
established in section 9(g) of the Act to
charge the IBC regulatory fee based on
active international bearer circuits.19
The Submarine Cable Coalition’s
proposal is also problematic because it
would exclude non-common carriers
from paying the fee. However, the
Commission concluded in the FY 2017
Report and Order that regulatory fees
should be paid for non-common carrier
13 AT&T Reply Comments at 6; CTIA Comments
at 2–3.
14 CTIA Comments at 4–5; CenturyLink
Comments at 5; AT&T Reply Comments at 5–6.
15 AT&T Jan. 17, 2018 ex parte at 1.
16 CenturyLink Comments at 5. See also AT&T
Reply Comments at 6.
17 CTIA Comments at 3–4.
18 CTIA Comments at 5; CenturyLink Comments
at 5; AT&T Reply Comments at 6. The Submarine
Cable Coalition contends that their proposal would
reduce the burden on the International Bureau
because of the costs associated with ‘‘overseeing
redundant international Section 214 licensees.’’
Submarine Cable Coalition Reply Comments at 9.
However, there is no evidence in the record that
there are such costs to the International Bureau.
19 47 U.S.C. 159(g).
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satellite and terrestrial circuits, as well
as submarine cable systems.20 Further,
the Submarine Cable Coalition has not
shown how a CMRS provider or an ITSP
with an international section 214
authorization is subject to regulation or
oversight by the International Bureau
that would justify an additional annual
regulatory fee based on International
Bureau FTEs. We recognize that
oversight or regulation by the
International Bureau is not limited to
the processing of international section
214 authorizations.21 We are, however,
unconvinced at this time that such costs
justify requiring hundreds of carriers
regulated by other bureaus to pay
additional regulatory fees 22 based on
International Bureau FTEs. For these
reasons, we decline to adopt a new
regulatory fee category for international
section 214 authorizations to replace
IBC regulatory fees at this time.
C. Cable Television Services—
Calculation of Number of Subscribers
8. In the FY 2008 FNPRM, the
Commission sought comment on the
optional bulk rate calculation for
determining the number of subscribers
in a multiple dwelling unit or MDU.23
The methodology for calculating the
number of cable subscribers has 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].24
9. In the 2017 FNPRM, we sought
comment on whether we should keep
the bulk rate calculation or if, due to the
passage of time, we should modify the
methodology to more accurately
calculate the number of subscribers in a
MDU.25 Commenters addressing this
issue unanimously support retaining the
current optional bulk rate calculation.26
In particular, commenters state that our
methodology continues to be ‘‘a
reasonable and feasible approach to
determining the number of MDU
subscribers for regulatory fee purposes,
and should be retained.’’ 27 And, there is
no evidence in the record to support
revising or eliminating this optional
bulk rate calculation. For these reasons,
we retain the bulk rate calculation.
IV. Final Regulatory Flexibility
Analysis
1. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA),28 an Initial Regulatory Flexibility
Analysis (IRFA) was included in the
2017 FNPRM.29 The Commission sought
written public comment on these
proposals including comment on the
IRFA. This Final Regulatory Flexibility
Analysis (FRFA) conforms to the
IRFA.30
A. Need for, and Objectives of, the
Report and Order
2. This Report and Order adopts a
revision to the existing tiers for
submarine cable regulatory fees.
B. Summary of the Significant Issues
Raised by the Public Comments in
Response to the IRFA
3. None.
C. Description and Estimate of the
Number of Small Entities to Which the
Rules Will Apply
4. The RFA directs agencies to
provide a description of, and where
feasible, an estimate of the number of
small entities that may be affected by
the proposed rules and policies, if
adopted.31 The RFA generally defines
the term ‘‘small entity’’ as having the
same meaning as the terms ‘‘small
business,’’ ‘‘small organization,’’ and
‘‘small governmental jurisdiction.’’ 32 In
addition, the term ‘‘small business’’ has
the same meaning as the term ‘‘small
business concern’’ under the Small
Business Act.33 A ‘‘small business
25 2017
2017 Report and Order, 32 FCC Rcd at
7071–2, paras. 34–35.
21 For example, International Bureau FTEs could
be involved in an international section 214
rulemaking proceeding, a proceeding related to
revocation of a carrier’s international section 214
authorization, or other matters related to section
214 of the Act.
22 The holders of such authorization pay
regulatory fees based on the service provided (e.g.,
CMRS or ITSP).
23 FY 2008 FNPRM, 73 FR 30563 (May 28, 2018),
24 FCC Rcd at 6407–6408, paras. 51–52.
24 This is essentially the same methodology we
sought comment on in the FY 2008 FNPRM.
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20 FY
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FNPRM, 32 FCC Rcd at 7076, paras. 50–
51.
26 ITTA Comments at 1–2; NCTA and ACA
Comments at 1–3.
27 NCTA and ACA Comments at 2.
28 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has
been amended by the Small Business Regulatory
Enforcement Fairness Act of 1996 (SBREFA), Public
Law 104–121, Title II, 110 Stat. 847 (1996).
29 Assessment and Collection of Regulatory Fees
for Fiscal Year 2017, 32 FCC Rcd 7057 (2017).
30 5 U.S.C. 604.
31 5 U.S.C. 603(b)(3).
32 5 U.S.C. 601(6).
33 5 U.S.C. 601(3) (incorporating the definition of
‘‘small-business concern’’ from the Small Business
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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.34 Nationwide,
there are a total of approximately 27.9
million small businesses, according to
the SBA.35
5. 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.’’ 36 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.37 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.38 Thus, under this
size standard, most firms in this
industry can be considered small.
6. Local Exchange Carriers (LECs).
Neither the Commission nor the SBA
has developed a size standard for small
businesses specifically applicable to
local exchange services. The closest
applicable NAICS code category is
Wired Telecommunications Carriers as
defined in paragraph 6 of this FRFA.
Under the applicable SBA size standard,
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.’’
34 15 U.S.C. 632.
35 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ https://www.sba.gov/sites/
default/files/advocacy/SB-FAQ-2016_WEB.pdf.
36 https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
37 See 13 CFR 120.201, NAICS code 517110.
38 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ5&prodType=table.
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such a business is small if it has 1,500
or fewer employees.39 According to
Commission data, census data for 2012
shows that there were 3,117 firms that
operated that year. Of this total, 3,083
operated with fewer than 1,000
employees.40 The Commission therefore
estimates that most providers of local
exchange carrier service are small
entities that may be affected by the rules
adopted.
7. Incumbent LECs. Neither the
Commission nor the SBA has developed
a small business size standard
specifically for incumbent local
exchange services. The closest
applicable NAICS code category is
Wired Telecommunications Carriers as
defined in paragraph 6 of this FRFA.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.41 According to Commission
data, 3,117 firms operated in that year.
Of this total, 3,083 operated with fewer
than 1,000 employees.42 Consequently,
the Commission estimates that most
providers of incumbent local exchange
service are small businesses that may be
affected by the rules and policies
adopted. Three hundred and seven (307)
Incumbent Local Exchange Carriers
reported that they were incumbent local
exchange service providers.43 Of this
total, an estimated 1,006 have 1,500 or
fewer employees.44
8. Competitive Local Exchange
Carriers (Competitive LECs),
Competitive Access Providers (CAPs),
Shared-Tenant Service Providers, and
Other Local Service Providers. Neither
the Commission nor the SBA has
developed a small business size
standard specifically for these service
providers. The appropriate NAICS code
category is Wired Telecommunications
Carriers, as defined in paragraph 6 of
this FRFA. Under that size standard,
such a business is small if it has 1,500
or fewer employees.45 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.46 Based on this data,
39 13
CFR 121.201, NAICS code 517110.
40 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ5&prodType=table.
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, Federal
Communications Commission, Wireline
Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (Sept. 2010)
(Trends in Telephone Service).
44 Id.
45 13 CFR 121.201, NAICS code 517110.
46 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid=
ECN_2012_US_51SSSZ5&prodType=table.
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36463
the Commission concludes that most
Competitive LECS, CAPs, SharedTenant Service Providers, and Other
Local Service Providers, are small
entities. According to Commission data,
1,442 carriers reported that they were
engaged in the provision of either
competitive local exchange services or
competitive access provider services.47
Of these 1,442 carriers, an estimated
1,256 have 1,500 or fewer employees.48
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.49 Also,
72 carriers have reported that they are
Other Local Service Providers.50 Of this
total, 70 have 1,500 or fewer
employees.51 Consequently, based on
internally researched FCC data, the
Commission estimates that most
providers of competitive local exchange
service, competitive access providers,
Shared-Tenant Service Providers, and
Other Local Service Providers are small
entities.
9. Interexchange Carriers (IXCs).
Neither the Commission nor the SBA
has developed a definition for
Interexchange Carriers. The closest
NAICS code category is Wired
Telecommunications Carriers as defined
in paragraph 6 of this FRFA. The
applicable size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.52 U.S.
Census data for 2012 indicates that
3,117 firms operated during that year.
Of that number, 3,083 operated with
fewer than 1,000 employees.53
According to internally developed
Commission data, 359 companies
reported that their primary
telecommunications service activity was
the provision of interexchange
services.54 Of this total, an estimated
317 have 1,500 or fewer employees.55
Consequently, the Commission
estimates that most interexchange
service providers are small entities that
may be affected by the rules adopted.
10. Prepaid Calling Card Providers.
Neither the Commission nor the SBA
has developed a small business
definition specifically for prepaid
calling card providers. The most
appropriate NAICS code-based category
for defining prepaid calling card
47 See
Trends in Telephone Service, at Table 5.3.
48 Id.
49 Id.
50 Id.
51 Id.
52 13
CFR 121.201, NAICS code 517110.
53 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid=
ECN_2012_US_51SSSZ5&prodType=table.
54 See Trends in Telephone Service, at Table 5.3.
55 Id.
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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.56 Under the applicable SBA
size standard, such a business is small
if it has 1,500 or fewer employees.57
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.58 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.59 All 193 carriers
have 1,500 or fewer employees.60
Consequently, the Commission
estimates that the majority of prepaid
calling card providers are small entities
that may be affected by the rules
adopted.
11. 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.61 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.62 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.63 Of this total, an estimated
56 https://www.census.gov/cgi-bin/ssd/naics/
naicsrch.
57 13 CFR 121.201, NAICS code 517911.
58 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ5&prodType=table.
59 See Trends in Telephone Service, at Table 5.3.
60 Id.
61 13 CFR 121.201, NAICS code 517911.
62 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ5&prodType=table.
63 See Trends in Telephone Service, at Table 5.3.
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211 have 1,500 or fewer employees.64
Consequently, the Commission
estimates that the majority of local
resellers are small entities that may be
affected by the rules adopted.
12. 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.65 Under that size standard,
such a business is small if it has 1,500
or fewer employees.66 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.67 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.68 Of this total, an estimated
857 have 1,500 or fewer employees.69
Consequently, the Commission
estimates that the majority of toll
resellers are small entities.
13.Other Toll Carriers. Neither the
Commission nor the SBA has developed
a definition for small businesses
specifically applicable to Other Toll
Carriers. This category includes toll
carriers that do not fall within the
categories of interexchange carriers,
operator service providers, prepaid
calling card providers, satellite service
carriers, or toll resellers. The closest
applicable NAICS code category is for
Wired Telecommunications Carriers as
defined in paragraph 6 of this FRFA.
Under the applicable SBA size standard,
such a business is small if it has 1,500
or fewer employees.70 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.71 Thus, under this category
and the associated small business size
standard, most Other Toll Carriers can
be considered small. According to
internally developed Commission data,
284 companies reported that their
primary telecommunications service
64 Id.
65 13
CFR 121.201, NAICS code 517911.
66 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ5&prodType=table.
67 Id.
68 Trends in Telephone Service at Table 5.3.
69 Id.
70 13 CFR 121.201, NAICS code 517110.
71 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
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activity was the provision of other toll
carriage.72 Of these, an estimated 279
have 1,500 or fewer employees.73
Consequently, the Commission
estimates that most Other Toll Carriers
are small entities.
14. 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.74 The appropriate size
standard under SBA rules is that such
a business is small if it has 1,500 or
fewer employees. For this industry,
Census data for 2012 show that there
were 967 firms that operated for the
entire year. Of this total, 955 firms had
fewer than 1,000 employees. Thus,
under this category and the associated
size standard, the Commission estimates
that the majority of wireless
telecommunications carriers (except
satellite) are small entities. Similarly,
according to internally developed
Commission data, 413 carriers reported
that they were engaged in the provision
of wireless telephony, including cellular
service, Personal Communications
Service (PCS), and Specialized Mobile
Radio (SMR) services.75 Of this total, an
estimated 261 have 1,500 or fewer
employees.76 Thus, using available data,
we estimate that the majority of wireless
firms can be considered small.
15. 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.’’ 77 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
72 Trends
in Telephone Service at Table 5.3.
73 Id.
74 NAICS code 517210. See https://
www.census.gov/cgi-bin/ssd/naics/naiscsrch.
75 Trends in Telephone Service at Table 5.3.
76 Id.
77 U.S. Census Bureau, 2012 NAICS code
Economic Census Definitions, https://
www.census.gov.cgi-bin/sssd/naics/naicsrch.
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having $38.5 million or less in annual
receipts.78 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 most
firms that operate television stations are
small. The Commission has estimated
the number of licensed commercial
television stations to be 1,383.79 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.80 We therefore estimate that the
majority of commercial television
broadcasters are small entities.
16. In assessing whether a business
concern qualifies as small under the
above definition, business (control)
affiliations 81 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.
17. In addition, the Commission has
estimated the number of licensed
noncommercial educational television
stations to be 394.82 These stations are
non-profit, and therefore considered to
be small entities.83 There are also 2,382
low power television stations, including
Class A stations.84 Given the nature of
78 13
CFR 121.201, NAICS code 515120.
FCC News Release, ‘‘Broadcast Station
Totals as of March 31, 2017,’’ April 11, 2017;
https://apps.fcc.gov/edocs_public/attachmatch/
DOC-344256A1.pdf.
80 We recognize that BIA’s estimate differs
slightly from the FCC total.
81 ‘‘[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).
82 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.
83 See generally 5 U.S.C. 601(4), (6).
84 See FCC News Release, ‘‘Broadcast Station
Totals as of March 31, 2017,’’ April 11, 2017;
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these services, we will presume that all
LPTV licensees qualify as small entities
under the above SBA small business
size standard.
18. 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.’’ 85 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.86 Census data for 2012 show
that 2,849 radio station firms operated
during that year. Of that number, 2,806
operated with annual receipts of less
than $25 million per year.87 According
to Commission staff review of BIA
Advisory Services, LLC’s Media Access
Pro Radio Database, on March 28, 2012,
about 10,759 (97 percent) of 11,102
commercial radio stations had revenues
of $38.5 million or less. Therefore, most
such entities are small entities.
19. In assessing whether a business
concern qualifies as small under the
above size standard, business
affiliations must be included.88 In
addition, to be determined to be a
‘‘small business,’’ the entity may not be
dominant in its field of operation.89 We
note that it is difficult at times to assess
these criteria in the context of media
entities, and our estimate of small
businesses may therefore be overinclusive.
20. 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
https://apps.fcc.gov/edocs_public/attachmatch/
DOC-344256A1.pdf.
85 https://www.census.gov.cgi-bin/sssd/naics/
naicsrch.
86 13 CFR 121.201, NAICS code 515112.
87 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ5&prodType=table.
88 ‘‘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).
89 13 CFR 121.102(b) (an SBA regulation).
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systems or direct-to-home satellite
systems, for transmission to viewers.90
The SBA has established a size standard
for this industry of $38.5 million or less.
Census data for 2012 shows that there
were 367 firms that operated that year.
Of this total, 319 operated with annual
receipts of less than $25 million.91 Thus
under this size standard, most firms
offering cable and other program
distribution services can be considered
small and may be affected by rules
adopted.
21. Cable Companies and Systems.
The Commission has developed its own
small business size standards for the
purpose of cable rate regulation. Under
the Commission’s rules, a ‘‘small cable
company’’ is one serving 400,000 or
fewer subscribers nationwide.92
Industry data indicate that there are
currently 4,413 active cable systems in
the United States.93 Of this total, all but
ten cable operators nationwide are small
under the 400,000-subscriber size
standard.94 In addition, under the
Commission’s rate regulation rules, a
‘‘small system’’ is a cable system serving
15,000 or fewer subscribers.95 Current
Commission records show 4,413 cable
systems nationwide.96 Of this total,
3,900 cable systems have fewer than
15,000 subscribers, and 700 systems
have 15,000 or more subscribers, based
on the same records.97 Thus, under this
standard as well, we estimate that most
cable systems are small entities.
22. 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.’’ 98
There are approximately 53 million
cable video subscribers in the United
90 https://www.census.gov.cgi-bin/sssd/naics/
naicsrch.
91 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US-51SSSZ5&prodType=Table.
92 47 CFR 76.901(e).
93 See Eighteenth Competition Report, 32 FCC
Rcd at 584, para. 39 (citing the Commission’s Cable
Operations and Licensing Systems (COALS)
database).
94 See https://www.snl.com/web/
client?auth=inherit#industry/topCableMSOs (last
visited July 18, 2017).
95 47 CFR 76.901(c).
96 See footnote 2, supra.
97 August 5, 2015 report from the Media Bureau
based on its research in COALS. See www.fcc.gov/
coals.
98 47 CFR 76.901 (f) and notes ff. 1, 2, and 3.
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States today.99 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.100 Based on available
data, we find that all but nine
incumbent cable operators are small
entities under this size standard.101 We
note that the Commission neither
requests nor collects information on
whether cable system operators are
affiliated with entities whose gross
annual revenues exceed $250
million.102 Although it seems certain
that some of these cable system
operators are affiliated with entities
whose gross annual revenues exceed
$250 million, we are unable at this time
to estimate with greater precision the
number of cable system operators that
would qualify as small cable operators
under the definition in the
Communications Act.
23. 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.103
The SBA determines that a wireline
business is small if it has fewer than
1500 employees.104 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.105
Based on that data, we conclude that
most wireline firms are small under the
applicable standard. However, currently
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.
24. All Other Telecommunications.
‘‘All Other Telecommunications’’ is
defined as follows: This U.S. industry is
comprised of establishments that are
primarily engaged in providing
specialized telecommunications
services, such as satellite tracking,
communications telemetry, and radar
station operation. This industry also
includes establishments primarily
engaged in providing satellite terminal
stations and associated facilities
connected with one or more terrestrial
systems and capable of transmitting
telecommunications to, and receiving
telecommunications from, satellite
systems. Establishments providing
internet services or voice over internet
protocol (VoIP) services via clientsupplied telecommunications
connections are also included in this
industry.106 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.107 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.108 Thus, most ‘‘All Other
Telecommunications’’ firms potentially
affected by the rules adopted can be
considered small.
25. RespOrgs. RespOrgs, i.e.,
Responsible Organizations, are entities
chosen by toll-free subscribers to
manage and administer the appropriate
99 See NCTA Industry Data, Cable’s Customer
Base, available at https://www.ncta.com/industrydata (last visited July 6, 2017).
100 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
101 See https://www.snl.com/web/
client?auth=inherit#industry/topCableMSOs (last
visited July 18, 2018).
102 The Commission does receive such
information on a case-by-case basis if a cable
operator appeals a local franchise authority’s
finding that the operator does not qualify as a small
cable operator pursuant to section 76.901(f) of the
Commission’s rules. See 47 CFR 76.901(f).
103 https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
104 NAICS code 517110; 13 CFR 121.201.
105 https://factfinder.census.gov/faces/
tableservices.jasf/pages/productview.xhtml?
pid+ECN_2012_US.51SSSZ4&prodType=table.
106 https://www.census.gov/cgi-bin/ssssd/naics/
naicsrch.
107 13 CFR 121.201; NAICS code 517919.
108 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ4&prodType=table.
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records in the toll-free Service
Management System for the toll-free
subscriber.109 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.
26. 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 Carriers110
and Wireless Telecommunications
Carriers (except satellite).111
27. 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.112 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.113 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.114 Based on
that data, we conclude that most Carrier
RespOrgs that operated with wirelinebased technology are small.
28. 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
109 See
47 CFR 52.101(b).
CFR 121.201, NAICS code 517110.
111 13 CFR 121.201, NAICS code 517210.
112 https://www.census.gov/cgi-bin/sssd/
naics.naicsrch.
113 13 CFR 120,201, NAICS code 517110.
114 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ4&prodType=table.
110 13
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airwaves, such as cellular services,
paging services, wireless internet access,
and wireless video services.115 The
appropriate size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.116
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.117 Based on that data, we
conclude that most Carrier RespOrgs
that operated with wireless-based
technology are small.
29. Non-Carrier RespOrgs. Neither the
Commission, the Census, nor the SBA
have developed a definition of NonCarrier RespOrgs. Accordingly, the
Commission believes that the closest
NAICS code-based definitional
categories for Non-Carrier RespOrgs are
‘‘Other Services Related To
Advertising’’ 118 and ‘‘Other
Management Consulting Services.’’ 119
30. 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.120 The
SBA has established a size standard for
this industry as annual receipts of $15
million dollars or less.121 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.122 Based on that data we
conclude that most Non-Carrier
RespOrgs who provide TFN-related
advertising services are small.
31. 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).
115 https://www.census.gov/cgi-bin/sssd/
naics.naicsrch.
116 13 CFR 120.201, NAICS code 517120.
117 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ4&prodType=table.
118 13 CFR 120.201, NAICS code 541890.
119 13 CFR 120.201, NAICS code 541618.
120 https://www.census.gov/cgi-bin/sssd/
naics.naicsrch.
121 13 CFR 120.201, NAICS code 541890.
122 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ4&prodType=table.
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Establishments providing
telecommunications or utilities
management consulting services are
included in this industry.123 The SBA
has established a size standard for this
industry of $15 million dollars or
less.124 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.125 Based on this data,
we conclude that most non-carrier
RespOrgs who provide TFN-related
management consulting services are
small.126
32. In addition to the data contained
in the four (see above) U.S. Census
NAICS code categories that provide
definitions of what services and
functions the Carrier and Non-Carrier
RespOrgs provide, Somos, the trade
association that monitors RespOrg
activities, compiled data showing that
as of July 1, 2016, there were 23
RespOrgs operational in Canada and 436
RespOrgs operational in the United
States, for a total of 459 RespOrgs
currently registered with Somos.127
coverage of the rule, or any part thereof,
for small entities.128
35. This Report and Order adopts new
tiers in assessing regulatory fees for
submarine cable systems. There should
not be a significant impact on small
entities because the fee is based on the
number of systems and would therefore
reflect the size of the entity. In keeping
with the requirements of the Regulatory
Flexibility Act, we have considered
certain alternative means of mitigating
the effects of fee increases to a particular
industry segment. For example, the
Commission has increased the de
minimis threshold to $1,000, which will
impact many small entities that pay
regulatory fees. This increase in the de
minimis threshold to $1,000 will relieve
regulatees both financially and
administratively. Regulatees may also
seek waivers or other relief on the basis
of financial hardship. See 47 CFR
1.1166.
D. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
33. This Report and Order does not
adopt any new reporting, recordkeeping,
or other compliance requirements.
V. Ordering Clause
36. Accordingly, it is ordered that,
pursuant to Section 9(a), (b), (e), (f), and
(g) of the Communications Act of 1934,
as amended, 47 U.S.C. 159(a), (b), (e),
(f), and (g), this Report and Order is
hereby adopted.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
34. 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
123 https://www.census.gov/cgi-bin/sssd/
naics.naicsrch.
124 13 CFR 120.201, NAICS code 514618.
125 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?
pid=ECN_2012_US_51SSSZ4&prodType=table.
126 The four NAICS code-based categories
selected above to provide definitions for Carrier and
Non-Carrier RespOrgs were selected because as a
group they refer generically and comprehensively to
all RespOrgs. Therefore, all RespOrgs, including
those not identified specifically or individually,
must comply with the rules adopted in the
Regulatory Fees Report and Order associated with
this Final Regulatory Flexibility Analysis.
127 Email from Jennifer Blanchard, Somos, July 1,
2016.
PO 00000
Frm 00069
Fmt 4700
Sfmt 4700
F. Federal Rules That May Duplicate,
Overlap, or Conflict
None.
Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2018–15651 Filed 7–27–18; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 63
[GN Docket No. 13–5; RM–11358; FCC 16–
90]
Technology Transitions; Policies and
Rules Governing Retirement of Copper
Loops by Incumbent Local Exchange
Carriers
Federal Communications
Commission.
ACTION: Final rule; announcement of
effective date.
AGENCY:
In this document, the
Commission announces that the Office
of Management and Budget (OMB) has
approved, for a period of three years, the
information collection associated with
the Commission’s discontinuance rules.
This document is consistent with the
SUMMARY:
128 5
E:\FR\FM\30JYR1.SGM
U.S.C. 603(c)(1)–(c)(4).
30JYR1
]]>Agencies
[Federal Register Volume 83, Number 146 (Monday, July 30, 2018)]
[Rules and Regulations]
[Pages 36460-36467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15651]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket Nos. 18-175; FCC 18-65]
Assessment and Collection of Regulatory Fees for Fiscal Year 2018
AGENCY: Federal Communications Commission.
ACTION: Final action.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) makes decisions involving submarine cables, international
bearer circuits, and the calculation of cable television subscribers.
DATES: This final action is effective August 29, 2018.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's FY
2018 Report and Order (FY 2018 Report and Order), FCC 18-65, MD Docket
No. 18-175 adopted on May 21, 2018 and released on May 22, 2018. 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 website, https://www.bcpi.com, or call
1-800-378-3160. This document is available in alternative formats
(computer diskette, large print, audio record, and braille). Persons
with disabilities who need documents in these formats may contact the
FCC by email: [email protected] or phone: 202-418-0530 or TTY: 202-418-
0432.
[[Page 36461]]
I. Procedural Matters
A. Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980 (RFA),\1\
the Commission has prepared a Final Regulatory Flexibility Analysis
(FRFA) relating to this Report and Order. The FRFA is located towards
the end of this document.
---------------------------------------------------------------------------
\1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
The SBREFA was enacted as Title II of the Contract with America
Advancement Act of 1996 (CWAAA).
---------------------------------------------------------------------------
B. Final Paperwork Reduction Act of 1995 Analysis
2. This document does not contain new or modified information
collection requirements subject to the Paperwork Reduction Act of 1995
(PRA), Public Law 104-13. In addition, therefore, it does not contain
any new or modified information collection burden for small business
concerns with fewer than 25 employees, pursuant to the Small Business
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C.
3506(c)(4).
C. Congressional Review Act
3. The Commission will send a copy of this Report & Order to
Congress and the Government Accountability Office pursuant to the
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
II. Introduction
In this Report and Order, we address several regulatory fee issues
raised in the Further Notice of Proposed Rulemaking that published
after the Commission's FY 2017 Report and Order.\2\ More specifically,
in this Report and Order, we (1) adopt new tiers for calculating
regulatory fees for submarine cable systems; (2) decline to adopt a new
regulatory fee for international section 214 authorizations; and (3)
retain the optional bulk rate calculation for determining the number of
subscribers in multiple dwelling units used in the calculation of cable
television regulatory fees.
---------------------------------------------------------------------------
\2\ See generally Assessment and Collection of Regulatory Fees
for Fiscal Year 2017 (Final Rule), 82 FR 44322 (Sept. 22, 2017), 32
FCC Rcd 7057 (2017) (FY 2017 Report and Order) and Assessment and
Collection of Regulatory Fees for Fiscal Year 2017 (Further Notice
of Proposed Rulemaking), 82 FR 50598 (Nov. 1, 2017), 32 FCC Rcd 7057
(2017) (2017 FNPRM).
---------------------------------------------------------------------------
III. Report and Order
A. Submarine Cable Regulatory Fees
1. In 2009, the Commission adopted a new methodology for
calculating submarine cable regulatory fees, based on a proposal from
the submarine cable industry.\3\ The methodology adopted was a tiered
per-cable system, with higher fees for larger systems and lower fees
for smaller systems. The Commission concluded that the methodology was
in the public interest and competitively neutral because it included
both common carriers and non-common carriers; all entities with cable
landing licensees would be required to pay this regulatory fee.\4\ At
that time, the Commission adopted a five-tier system for the submarine
cable industry, but since that date the subsequent growth in the
industry has moved all but two systems into the highest tier.\5\ In the
2017 FNPRM, we sought comment on revising the regulatory fee tiers for
submarine cable systems.\6\ One commenter, the Submarine Cable
Coalition, generally agrees with our proposal to revise the existing
tiers.\7\
---------------------------------------------------------------------------
\3\ Submarine Cable Order, 74 FR 22104 (May 12, 2009), 24 FCC
Rcd at 4212-4216, paras. 7-18.
\4\ Id., 24 FCC Rcd at 4212-13, paras. 8-9.
\5\ FY 2017 Report and Order, 32 FCC Rcd at 7074, para. 46.
\6\ 2017 FNPRM, 32 FCC Rcd at 7074-75, para. 46.
\7\ Coalition Reply Comments at 3-4, 7-8.
---------------------------------------------------------------------------
2. We adjust the tiers proposed in the 2017 FNPRM to reflect
capacity growth since 2009 when the submarine cable tiers were first
established. Specifically, the regulatory fee tiers for submarine cable
systems we adopt below add higher thresholds to reflect capacity growth
in the industry. Based on this increase in capacity, we believe the
tiers better capture varying types of submarine cable operators.
Systems with capacity equal to or greater than 4,000 Gbps
will now pay 16 payment units.
Systems with capacity equal to or greater than 1,000 Gbps
but less than 4,000 Gbps will now pay 8 payment units.
Systems with capacity equal to or greater than 250 Gbps
but less than 1,000 Gbps will now pay 4 payment units.
Systems with capacity equal to or greater than 50 Gbps but
less than 250 Gbps, will pay 2 payment units.
Systems with capacity less than 50 Gbps will pay 1 payment
unit.
3. Under the revised regulatory fee tiers we adopt today, we
estimate that approximately half of the submarine cable systems will be
in the bottom or middle tiers, while the remaining systems will be in
the new highest tier. The FCC will provide proposed rates for submarine
cable systems for FY 2018 in future rulemaking.
4. Finally, while the Submarine Cable Coalition contends that non-
common carrier submarine cable systems should pay lower fees than
common carriers, we note that the Commission adopted a competitively
neutral methodology that included both common carriers and non-common
carriers in the Submarine Cable Order, based on a consensus proposal
from a group of operators, including at least one member of the
Coalition, GU Holdings, Inc., an indirect, wholly-owned subsidiary of
Google, Inc.\8\ The Coalition has not provided any evidence to support
its claim that we should depart from this competitively neutral
methodology and treat non-common carrier submarine cable systems
differently from common carrier systems at this time.
---------------------------------------------------------------------------
\8\ Submarine Cable Order, 24 FCC Rcd at 4208, para. 1 & note 3.
---------------------------------------------------------------------------
B. International Bearer Circuits and Section 214 Authorizations
5. In the 2017 FNPRM, the Commission sought comment on a proposal
raised by the Submarine Cable Coalition, that in lieu of regulatory
fees for international bearer circuits (IBCs), we should assess a
regulatory fee, based on International Bureau FTEs, on every holder of
an international section 214 authorization.\9\ SIA supports replacing
the satellite IBC fee with a fee on each international section 214
authorization and contends that such a fee for all entities with
international section 214 authorizations would be appropriate because
the holders of international section 214 authority are ``directly
involved in international common carrier services and benefit from
associated Commission regulation. . . .'' \10\ The Submarine Cable
Coalition contends that adopting a flat fee for all holders of
international section 214 authorizations would be an efficient and
equitable methodology for assessing regulatory fees.\11\
---------------------------------------------------------------------------
\9\ 2017 FNPRM, 32 FCC Rcd at 7075, para. 48. This proposal was
from the Submarine Cable Coalition.
\10\ SIA Comments at 6.
\11\ Coalition Reply Comments at 3.
---------------------------------------------------------------------------
6. Other commenters oppose this approach. CTIA argues that
assessing a fee based on international section 214 authorizations would
change the basis for the IBC fees, which is ownership and use of
international circuits, because many international 214 authorization
holders only provide resold service and do not have international
facilities.\12\ AT&T agrees with CTIA and notes that this approach
would impose a new IBC regulatory fee on hundreds of entities
[[Page 36462]]
that do not currently pay IBC fees.\13\ These commenters also explain
that because only common carriers hold international section 214
authorizations, this approach would essentially reverse our decision in
the FY 2017 Report and Order to include non-common carrier terrestrial
IBCs in the IBC regulatory fee methodology.\14\ For example, AT&T
states that replacing all or part of the IBC fee with a flat fee on
international section 214 authorizations would ``effectively reverse
the Commission's decisions to provide a competitively neutral IBC fee
structure.'' \15\ CenturyLink argues that entities holding an
international 214 authorization but that do not have active
international circuits do not receive the benefits of Commission
international activities, and therefore should not be subject to
regulatory fees.\16\ CTIA also states that international section 214
applicants already pay a $1,155 filing fee with each application and
there is no evidence of other International Bureau costs associated
with international section 214 authorizations.\17\ Commenters also note
that such an approach would present administrative difficulties since
many carriers have multiple international 214 authorizations and can
surrender them if the Commission adopted a per-international section
214 authorization regulatory fee.\18\
---------------------------------------------------------------------------
\12\ CTIA Comments at 2-3.
\13\ AT&T Reply Comments at 6; CTIA Comments at 2-3.
\14\ CTIA Comments at 4-5; CenturyLink Comments at 5; AT&T Reply
Comments at 5-6.
\15\ AT&T Jan. 17, 2018 ex parte at 1.
\16\ CenturyLink Comments at 5. See also AT&T Reply Comments at
6.
\17\ CTIA Comments at 3-4.
\18\ CTIA Comments at 5; CenturyLink Comments at 5; AT&T Reply
Comments at 6. The Submarine Cable Coalition contends that their
proposal would reduce the burden on the International Bureau because
of the costs associated with ``overseeing redundant international
Section 214 licensees.'' Submarine Cable Coalition Reply Comments at
9. However, there is no evidence in the record that there are such
costs to the International Bureau.
---------------------------------------------------------------------------
7. We decline to impose regulatory fees on international section
214 authorizations in lieu of our existing IBC regulatory fees for
terrestrial and satellite IBCs and submarine cable systems. The record
does not demonstrate that this approach is advantageous over the
existing scheme established in section 9(g) of the Act to charge the
IBC regulatory fee based on active international bearer circuits.\19\
The Submarine Cable Coalition's proposal is also problematic because it
would exclude non-common carriers from paying the fee. However, the
Commission concluded in the FY 2017 Report and Order that regulatory
fees should be paid for non-common carrier satellite and terrestrial
circuits, as well as submarine cable systems.\20\ Further, the
Submarine Cable Coalition has not shown how a CMRS provider or an ITSP
with an international section 214 authorization is subject to
regulation or oversight by the International Bureau that would justify
an additional annual regulatory fee based on International Bureau FTEs.
We recognize that oversight or regulation by the International Bureau
is not limited to the processing of international section 214
authorizations.\21\ We are, however, unconvinced at this time that such
costs justify requiring hundreds of carriers regulated by other bureaus
to pay additional regulatory fees \22\ based on International Bureau
FTEs. For these reasons, we decline to adopt a new regulatory fee
category for international section 214 authorizations to replace IBC
regulatory fees at this time.
---------------------------------------------------------------------------
\19\ 47 U.S.C. 159(g).
\20\ FY 2017 Report and Order, 32 FCC Rcd at 7071-2, paras. 34-
35.
\21\ For example, International Bureau FTEs could be involved in
an international section 214 rulemaking proceeding, a proceeding
related to revocation of a carrier's international section 214
authorization, or other matters related to section 214 of the Act.
\22\ The holders of such authorization pay regulatory fees based
on the service provided (e.g., CMRS or ITSP).
---------------------------------------------------------------------------
C. Cable Television Services--Calculation of Number of Subscribers
8. In the FY 2008 FNPRM, the Commission sought comment on the
optional bulk rate calculation for determining the number of
subscribers in a multiple dwelling unit or MDU.\23\ The methodology for
calculating the number of cable subscribers has been the following:
---------------------------------------------------------------------------
\23\ FY 2008 FNPRM, 73 FR 30563 (May 28, 2018), 24 FCC Rcd at
6407-6408, paras. 51-52.
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].\24\
---------------------------------------------------------------------------
\24\ This is essentially the same methodology we sought comment
on in the FY 2008 FNPRM.
9. In the 2017 FNPRM, we sought comment on whether we should keep
the bulk rate calculation or if, due to the passage of time, we should
modify the methodology to more accurately calculate the number of
subscribers in a MDU.\25\ Commenters addressing this issue unanimously
support retaining the current optional bulk rate calculation.\26\ In
particular, commenters state that our methodology continues to be ``a
reasonable and feasible approach to determining the number of MDU
subscribers for regulatory fee purposes, and should be retained.'' \27\
And, there is no evidence in the record to support revising or
eliminating this optional bulk rate calculation. For these reasons, we
retain the bulk rate calculation.
---------------------------------------------------------------------------
\25\ 2017 FNPRM, 32 FCC Rcd at 7076, paras. 50-51.
\26\ ITTA Comments at 1-2; NCTA and ACA Comments at 1-3.
\27\ NCTA and ACA Comments at 2.
---------------------------------------------------------------------------
IV. Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\28\ an Initial Regulatory Flexibility Analysis (IRFA)
was included in the 2017 FNPRM.\29\ The Commission sought written
public comment on these proposals including comment on the IRFA. This
Final Regulatory Flexibility Analysis (FRFA) conforms to the IRFA.\30\
---------------------------------------------------------------------------
\28\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by
the Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
\29\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2017, 32 FCC Rcd 7057 (2017).
\30\ 5 U.S.C. 604.
---------------------------------------------------------------------------
A. Need for, and Objectives of, the Report and Order
2. This Report and Order adopts a revision to the existing tiers
for submarine cable regulatory fees.
B. Summary of the Significant Issues Raised by the Public Comments in
Response to the IRFA
3. None.
C. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply
4. The RFA directs agencies to provide a description of, and where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules and policies, if adopted.\31\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \32\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\33\ A ``small business
[[Page 36463]]
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.\34\ Nationwide, there are a
total of approximately 27.9 million small businesses, according to the
SBA.\35\
---------------------------------------------------------------------------
\31\ 5 U.S.C. 603(b)(3).
\32\ 5 U.S.C. 601(6).
\33\ 5 U.S.C. 601(3) (incorporating the definition of ``small-
business concern'' from 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.''
\34\ 15 U.S.C. 632.
\35\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
---------------------------------------------------------------------------
5. 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.'' \36\ 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.\37\ 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.\38\ Thus, under
this size standard, most firms in this industry can be considered
small.
---------------------------------------------------------------------------
\36\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\37\ See 13 CFR 120.201, NAICS code 517110.
\38\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------
6. Local Exchange Carriers (LECs). Neither the Commission nor the
SBA has developed a size standard for small businesses specifically
applicable to local exchange services. The closest applicable NAICS
code category is Wired Telecommunications Carriers as defined in
paragraph 6 of this FRFA. Under the applicable SBA size standard, such
a business is small if it has 1,500 or fewer employees.\39\ According
to Commission data, census data for 2012 shows that there were 3,117
firms that operated that year. Of this total, 3,083 operated with fewer
than 1,000 employees.\40\ The Commission therefore estimates that most
providers of local exchange carrier service are small entities that may
be affected by the rules adopted.
---------------------------------------------------------------------------
\39\ 13 CFR 121.201, NAICS code 517110.
\40\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------
7. Incumbent LECs. Neither the Commission nor the SBA has developed
a small business size standard specifically for incumbent local
exchange services. The closest applicable NAICS code category is Wired
Telecommunications Carriers as defined in paragraph 6 of this FRFA.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\41\ According to Commission data, 3,117 firms operated
in that year. Of this total, 3,083 operated with fewer than 1,000
employees.\42\ Consequently, the Commission estimates that most
providers of incumbent local exchange service are small businesses that
may be affected by the rules and policies adopted. Three hundred and
seven (307) Incumbent Local Exchange Carriers reported that they were
incumbent local exchange service providers.\43\ Of this total, an
estimated 1,006 have 1,500 or fewer employees.\44\
---------------------------------------------------------------------------
\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, Federal Communications
Commission, Wireline Competition Bureau, Industry Analysis and
Technology Division at Table 5.3 (Sept. 2010) (Trends in Telephone
Service).
\44\ Id.
---------------------------------------------------------------------------
8. Competitive Local Exchange Carriers (Competitive LECs),
Competitive Access Providers (CAPs), Shared-Tenant Service Providers,
and Other Local Service Providers. Neither the Commission nor the SBA
has developed a small business size standard specifically for these
service providers. The appropriate NAICS code category is Wired
Telecommunications Carriers, as defined in paragraph 6 of this FRFA.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\45\ 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.\46\ Based on this data, the Commission
concludes that most Competitive LECS, CAPs, Shared-Tenant Service
Providers, and Other Local Service Providers, are small entities.
According to Commission data, 1,442 carriers reported that they were
engaged in the provision of either competitive local exchange services
or competitive access provider services.\47\ Of these 1,442 carriers,
an estimated 1,256 have 1,500 or fewer employees.\48\ 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.\49\ Also, 72
carriers have reported that they are Other Local Service Providers.\50\
Of this total, 70 have 1,500 or fewer employees.\51\ Consequently,
based on internally researched FCC data, the Commission estimates that
most providers of competitive local exchange service, competitive
access providers, Shared-Tenant Service Providers, and Other Local
Service Providers are small entities.
---------------------------------------------------------------------------
\45\ 13 CFR 121.201, NAICS code 517110.
\46\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\47\ See Trends in Telephone Service, at Table 5.3.
\48\ Id.
\49\ Id.
\50\ Id.
\51\ Id.
---------------------------------------------------------------------------
9. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA has developed a definition for Interexchange Carriers. The closest
NAICS code category is Wired Telecommunications Carriers as defined in
paragraph 6 of this FRFA. The applicable size standard under SBA rules
is that such a business is small if it has 1,500 or fewer
employees.\52\ U.S. Census data for 2012 indicates that 3,117 firms
operated during that year. Of that number, 3,083 operated with fewer
than 1,000 employees.\53\ According to internally developed Commission
data, 359 companies reported that their primary telecommunications
service activity was the provision of interexchange services.\54\ Of
this total, an estimated 317 have 1,500 or fewer employees.\55\
Consequently, the Commission estimates that most interexchange service
providers are small entities that may be affected by the rules adopted.
---------------------------------------------------------------------------
\52\ 13 CFR 121.201, NAICS code 517110.
\53\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\54\ See Trends in Telephone Service, at Table 5.3.
\55\ Id.
---------------------------------------------------------------------------
10. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business definition specifically for prepaid
calling card providers. The most appropriate NAICS code-based category
for defining prepaid calling card
[[Page 36464]]
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.\56\ Under the applicable SBA size standard, such a
business is small if it has 1,500 or fewer employees.\57\ 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.\58\ 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.\59\ All 193 carriers have 1,500 or fewer
employees.\60\ Consequently, the Commission estimates that the majority
of prepaid calling card providers are small entities that may be
affected by the rules adopted.
---------------------------------------------------------------------------
\56\ https://www.census.gov/cgi-bin/ssd/naics/naicsrch.
\57\ 13 CFR 121.201, NAICS code 517911.
\58\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\59\ See Trends in Telephone Service, at Table 5.3.
\60\ Id.
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11. 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.\61\ 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.\62\ 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.\63\ Of this total, an estimated 211 have 1,500 or fewer
employees.\64\ Consequently, the Commission estimates that the majority
of local resellers are small entities that may be affected by the rules
adopted.
---------------------------------------------------------------------------
\61\ 13 CFR 121.201, NAICS code 517911.
\62\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\63\ See Trends in Telephone Service, at Table 5.3.
\64\ Id.
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12. 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.\65\ Under that size standard, such a business is small if it
has 1,500 or fewer employees.\66\ 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.\67\ 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.\68\ Of this total, an estimated 857 have 1,500
or fewer employees.\69\ Consequently, the Commission estimates that the
majority of toll resellers are small entities.
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\65\ 13 CFR 121.201, NAICS code 517911.
\66\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\67\ Id.
\68\ Trends in Telephone Service at Table 5.3.
\69\ Id.
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13.Other Toll Carriers. Neither the Commission nor the SBA has
developed a definition for small businesses specifically applicable to
Other Toll Carriers. This category includes toll carriers that do not
fall within the categories of interexchange carriers, operator service
providers, prepaid calling card providers, satellite service carriers,
or toll resellers. The closest applicable NAICS code category is for
Wired Telecommunications Carriers as defined in paragraph 6 of this
FRFA. Under the applicable SBA size standard, such a business is small
if it has 1,500 or fewer employees.\70\ 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.\71\ Thus, under this category
and the associated small business size standard, most Other Toll
Carriers can be considered small. According to internally developed
Commission data, 284 companies reported that their primary
telecommunications service activity was the provision of other toll
carriage.\72\ Of these, an estimated 279 have 1,500 or fewer
employees.\73\ Consequently, the Commission estimates that most Other
Toll Carriers are small entities.
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\70\ 13 CFR 121.201, NAICS code 517110.
\71\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\72\ Trends in Telephone Service at Table 5.3.
\73\ Id.
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14. 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.\74\
The appropriate size standard under SBA rules is that such a business
is small if it has 1,500 or fewer employees. For this industry, Census
data for 2012 show that there were 967 firms that operated for the
entire year. Of this total, 955 firms had fewer than 1,000 employees.
Thus, under this category and the associated size standard, the
Commission estimates that the majority of wireless telecommunications
carriers (except satellite) are small entities. Similarly, according to
internally developed Commission data, 413 carriers reported that they
were engaged in the provision of wireless telephony, including cellular
service, Personal Communications Service (PCS), and Specialized Mobile
Radio (SMR) services.\75\ Of this total, an estimated 261 have 1,500 or
fewer employees.\76\ Thus, using available data, we estimate that the
majority of wireless firms can be considered small.
---------------------------------------------------------------------------
\74\ NAICS code 517210. See https://www.census.gov/cgi-bin/ssd/naics/naiscsrch.
\75\ Trends in Telephone Service at Table 5.3.
\76\ Id.
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15. 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.'' \77\ 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
[[Page 36465]]
having $38.5 million or less in annual receipts.\78\ 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 most firms
that operate television stations are small. The Commission has
estimated the number of licensed commercial television stations to be
1,383.\79\ 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.\80\ We therefore estimate that the majority of commercial
television broadcasters are small entities.
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\77\ U.S. Census Bureau, 2012 NAICS code Economic Census
Definitions, https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\78\ 13 CFR 121.201, NAICS code 515120.
\79\ 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.
\80\ We recognize that BIA's estimate differs slightly from the
FCC total.
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16. In assessing whether a business concern qualifies as small
under the above definition, business (control) affiliations \81\ must
be included. Our estimate, therefore, likely overstates the number of
small entities that might be affected by our action, because the
revenue figure on which it is based does not include or aggregate
revenues from affiliated companies. In addition, an element of the
definition of ``small business'' is that the entity not be dominant in
its field of operation. We are unable at this time to define or
quantify the criteria that would establish whether a specific
television station is dominant in its field of operation. Accordingly,
the estimate of small businesses to which rules may apply does not
exclude any television station from the definition of a small business
on this basis and is therefore possibly over-inclusive to that extent.
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\81\ ``[Business concerns] are affiliates of each other when one
concern controls or has the power to control the other or a third
party or parties controls or has to power to control both.'' 13 CFR
21.103(a)(1).
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17. In addition, the Commission has estimated the number of
licensed noncommercial educational television stations to be 394.\82\
These stations are non-profit, and therefore considered to be small
entities.\83\ There are also 2,382 low power television stations,
including Class A stations.\84\ 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.
---------------------------------------------------------------------------
\82\ 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.
\83\ See generally 5 U.S.C. 601(4), (6).
\84\ 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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18. 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.'' \85\ 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.\86\ Census data for
2012 show that 2,849 radio station firms operated during that year. Of
that number, 2,806 operated with annual receipts of less than $25
million per year.\87\ According to Commission staff review of BIA
Advisory Services, LLC's Media Access Pro Radio Database, on March 28,
2012, about 10,759 (97 percent) of 11,102 commercial radio stations had
revenues of $38.5 million or less. Therefore, most such entities are
small entities.
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\85\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\86\ 13 CFR 121.201, NAICS code 515112.
\87\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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19. In assessing whether a business concern qualifies as small
under the above size standard, business affiliations must be
included.\88\ In addition, to be determined to be a ``small business,''
the entity may not be dominant in its field of operation.\89\ We note
that it is difficult at times to assess these criteria in the context
of media entities, and our estimate of small businesses may therefore
be over-inclusive.
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\88\ ``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).
\89\ 13 CFR 121.102(b) (an SBA regulation).
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20. 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.\90\ The SBA has established a size standard for this industry
of $38.5 million or less. Census data for 2012 shows that there were
367 firms that operated that year. Of this total, 319 operated with
annual receipts of less than $25 million.\91\ Thus under this size
standard, most firms offering cable and other program distribution
services can be considered small and may be affected by rules adopted.
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\90\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\91\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US-51SSSZ5&prodType=Table.
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21. Cable Companies and Systems. The Commission has developed its
own small business size standards for the purpose of cable rate
regulation. Under the Commission's rules, a ``small cable company'' is
one serving 400,000 or fewer subscribers nationwide.\92\ Industry data
indicate that there are currently 4,413 active cable systems in the
United States.\93\ Of this total, all but ten cable operators
nationwide are small under the 400,000-subscriber size standard.\94\ In
addition, under the Commission's rate regulation rules, a ``small
system'' is a cable system serving 15,000 or fewer subscribers.\95\
Current Commission records show 4,413 cable systems nationwide.\96\ Of
this total, 3,900 cable systems have fewer than 15,000 subscribers, and
700 systems have 15,000 or more subscribers, based on the same
records.\97\ Thus, under this standard as well, we estimate that most
cable systems are small entities.
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\92\ 47 CFR 76.901(e).
\93\ See Eighteenth Competition Report, 32 FCC Rcd at 584, para.
39 (citing the Commission's Cable Operations and Licensing Systems
(COALS) database).
\94\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2017).
\95\ 47 CFR 76.901(c).
\96\ See footnote 2, supra.
\97\ August 5, 2015 report from the Media Bureau based on its
research in COALS. See www.fcc.gov/coals.
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22. 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.'' \98\ There are approximately 53 million cable video
subscribers in the United
[[Page 36466]]
States today.\99\ 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.\100\ Based on available data,
we find that all but nine incumbent cable operators are small entities
under this size standard.\101\ We note that the Commission neither
requests nor collects information on whether cable system operators are
affiliated with entities whose gross annual revenues exceed $250
million.\102\ Although it seems certain that some of these cable system
operators are affiliated with entities whose gross annual revenues
exceed $250 million, we are unable at this time to estimate with
greater precision the number of cable system operators that would
qualify as small cable operators under the definition in the
Communications Act.
---------------------------------------------------------------------------
\98\ 47 CFR 76.901 (f) and notes ff. 1, 2, and 3.
\99\ See NCTA Industry Data, Cable's Customer Base, available at
https://www.ncta.com/industry-data (last visited July 6, 2017).
\100\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\101\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2018).
\102\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's
finding that the operator does not qualify as a small cable operator
pursuant to section 76.901(f) of the Commission's rules. See 47 CFR
76.901(f).
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23. 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.\103\ The SBA determines that a wireline business is
small if it has fewer than 1500 employees.\104\ 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.\105\ Based on that data, we conclude that most wireline
firms are small under the applicable standard. However, currently 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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\103\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\104\ NAICS code 517110; 13 CFR 121.201.
\105\ https://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
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24. All Other Telecommunications. ``All Other Telecommunications''
is defined as follows: This U.S. industry is comprised of
establishments that are primarily engaged in providing specialized
telecommunications services, such as satellite tracking, communications
telemetry, and radar station operation. This industry also includes
establishments primarily engaged in providing satellite terminal
stations and associated facilities connected with one or more
terrestrial systems and capable of transmitting telecommunications to,
and receiving telecommunications from, satellite systems.
Establishments providing internet services or voice over internet
protocol (VoIP) services via client-supplied telecommunications
connections are also included in this industry.\106\ 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.\107\ 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.\108\ Thus, most ``All Other
Telecommunications'' firms potentially affected by the rules adopted
can be considered small.
---------------------------------------------------------------------------
\106\ https://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
\107\ 13 CFR 121.201; NAICS code 517919.
\108\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
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25. RespOrgs. RespOrgs, i.e., Responsible Organizations, are
entities chosen by toll-free subscribers to manage and administer the
appropriate records in the toll-free Service Management System for the
toll-free subscriber.\109\ 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.
---------------------------------------------------------------------------
\109\ See 47 CFR 52.101(b).
---------------------------------------------------------------------------
26. 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\110\ and Wireless Telecommunications Carriers (except
satellite).\111\
---------------------------------------------------------------------------
\110\ 13 CFR 121.201, NAICS code 517110.
\111\ 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------
27. 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.\112\ 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.\113\ 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.\114\ Based
on that data, we conclude that most Carrier RespOrgs that operated with
wireline-based technology are small.
---------------------------------------------------------------------------
\112\ https://www.census.gov/cgi-bin/sssd/naics.naicsrch.
\113\ 13 CFR 120,201, NAICS code 517110.
\114\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
28. 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
[[Page 36467]]
airwaves, such as cellular services, paging services, wireless internet
access, and wireless video services.\115\ The appropriate size standard
under SBA rules is that such a business is small if it has 1,500 or
fewer employees.\116\ 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.\117\ Based on that data, we
conclude that most Carrier RespOrgs that operated with wireless-based
technology are small.
---------------------------------------------------------------------------
\115\ https://www.census.gov/cgi-bin/sssd/naics.naicsrch.
\116\ 13 CFR 120.201, NAICS code 517120.
\117\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
29. Non-Carrier RespOrgs. Neither the Commission, the Census, nor
the SBA have developed a definition of Non-Carrier RespOrgs.
Accordingly, the Commission believes that the closest NAICS code-based
definitional categories for Non-Carrier RespOrgs are ``Other Services
Related To Advertising'' \118\ and ``Other Management Consulting
Services.'' \119\
---------------------------------------------------------------------------
\118\ 13 CFR 120.201, NAICS code 541890.
\119\ 13 CFR 120.201, NAICS code 541618.
---------------------------------------------------------------------------
30. 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.\120\ The SBA has established a size standard for this
industry as annual receipts of $15 million dollars or less.\121\ 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.\122\ Based on that data we conclude that most
Non-Carrier RespOrgs who provide TFN-related advertising services are
small.
---------------------------------------------------------------------------
\120\ https://www.census.gov/cgi-bin/sssd/naics.naicsrch.
\121\ 13 CFR 120.201, NAICS code 541890.
\122\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
31. 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.\123\ The SBA has established a size standard
for this industry of $15 million dollars or less.\124\ 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.\125\ Based on this data, we conclude that most non-
carrier RespOrgs who provide TFN-related management consulting services
are small.\126\
---------------------------------------------------------------------------
\123\ https://www.census.gov/cgi-bin/sssd/naics.naicsrch.
\124\ 13 CFR 120.201, NAICS code 514618.
\125\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
\126\ The four NAICS code-based categories selected above to
provide definitions for Carrier and Non-Carrier RespOrgs were
selected because as a group they refer generically and
comprehensively to all RespOrgs. Therefore, all RespOrgs, including
those not identified specifically or individually, must comply with
the rules adopted in the Regulatory Fees Report and Order associated
with this Final Regulatory Flexibility Analysis.
---------------------------------------------------------------------------
32. In addition to the data contained in the four (see above) U.S.
Census NAICS code categories that provide definitions of what services
and functions the Carrier and Non-Carrier RespOrgs provide, Somos, the
trade association that monitors RespOrg activities, compiled data
showing that as of July 1, 2016, there were 23 RespOrgs operational in
Canada and 436 RespOrgs operational in the United States, for a total
of 459 RespOrgs currently registered with Somos.\127\
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\127\ Email from Jennifer Blanchard, Somos, July 1, 2016.
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D. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
33. This Report and Order does not adopt any new reporting,
recordkeeping, or other compliance requirements.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
34. 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.\128\
---------------------------------------------------------------------------
\128\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------
35. This Report and Order adopts new tiers in assessing regulatory
fees for submarine cable systems. There should not be a significant
impact on small entities because the fee is based on the number of
systems and would therefore reflect the size of the entity. In keeping
with the requirements of the Regulatory Flexibility Act, we have
considered certain alternative means of mitigating the effects of fee
increases to a particular industry segment. For example, the Commission
has increased the de minimis threshold to $1,000, which will impact
many small entities that pay regulatory fees. This increase in the de
minimis threshold to $1,000 will relieve regulatees both financially
and administratively. Regulatees may also seek waivers or other relief
on the basis of financial hardship. See 47 CFR 1.1166.
F. Federal Rules That May Duplicate, Overlap, or Conflict
None.
V. Ordering Clause
36. Accordingly, it is ordered that, pursuant to Section 9(a), (b),
(e), (f), and (g) of the Communications Act of 1934, as amended, 47
U.S.C. 159(a), (b), (e), (f), and (g), this Report and Order is hereby
adopted.
Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2018-15651 Filed 7-27-18; 8:45 am]
BILLING CODE 6712-01-P
