Assessment and Collection of Regulatory Fees for Fiscal Year 2019, 56734-56743 [2019-22914]
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Federal Register / Vol. 84, No. 205 / Wednesday, October 23, 2019 / Proposed Rules
Standards Residual Risk and
Technology Review for Ethylene
Production proposed rulemaking. The
document also requested public
comment on the proposed action. The
EPA is announcing that it will hold a
public hearing. The hearing will provide
interested parties the opportunity to
present data, views, or arguments
concerning the proposed action. In
addition, the EPA is extending the
comment period by 11 days to allow for
a public comment period of 30 days
following the public hearing.
DATES: Public hearing: The EPA will
hold a public hearing on November 6,
2019, from 9:00 a.m. (local time) until
1:00 p.m. in Washington, DC. The EPA
will begin pre-registering speakers for
the hearing on October 23, 2019 and end
pre-registration on November 4, 2019.
Please refer to the SUPPLEMENTARY
INFORMATION section for additional
information on the public hearing.
Comments: The comment period for
the proposed rule published October 9,
2019 (84 FR 54278), is extended. The
EPA must receive comments on this
proposed action no later than December
6, 2019.
ADDRESSES: The hearing will be held at
the EPA WJC East Building, 1201
Constitution Avenue NW, Room 1153,
Washington, DC 20004. The EPA’s
website for this rulemaking, which
includes the proposal and information
about the hearing, can be found at:
https://www.epa.gov/stationary-sourcesair-pollution/acetal-resins-acrylicmodacrylic-fibers-carbon-blackhydrogen. Written comments on the
proposed rule may be submitted to the
EPA electronically, by mail, facsimile,
or through hand delivery/courier. Please
refer to the proposal (84 FR 54278) for
the addresses and detailed instructions.
FOR FURTHER INFORMATION CONTACT: To
register to speak at the hearing, please
use the online registration form
available at https://www.epa.gov/
stationary-sources-air-pollution/acetalresins-acrylic-modacrylic-fibers-carbonblack-hydrogen or contact Virginia Hunt
at (919) 541–0832 or at hunt.virginia@
epa.gov.
SUPPLEMENTARY INFORMATION: Because
this hearing is being held at a U.S.
Government facility, individuals
planning to attend the hearing should be
prepared to show valid picture
identification to the security staff to gain
access to the meeting room. Please note
that the REAL ID Act, passed by
Congress in 2005, established new
requirements for entering Federal
facilities. For purposes of the REAL ID
Act, the EPA will accept governmentissued IDs, including driver’s licenses,
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from the District of Columbia and all
states and territories except from
American Samoa. If your identification
is issued by American Samoa, you must
present an additional form of
identification to enter the Federal
building where the public hearing will
be held. Acceptable alternative forms of
identification include: Federal
employee badges, passports, enhanced
driver’s licenses, and military
identification cards. For additional
information on the status of your state
regarding REAL ID, go to: https://
www.dhs.gov/real-id.
Any objects brought into the building
need to fit through the security
screening system, such as a purse,
laptop bag, or small backpack.
Demonstrations will not be allowed on
Federal property for security reasons.
On November 5, 2019, the EPA will
post at https://www.epa.gov/stationarysources-air-pollution/acetal-resinsacrylic-modacrylic-fibers-carbon-blackhydrogen a general agenda for the
hearing that will list pre-registered
speakers in approximate order. The EPA
will make every effort to follow the
schedule as closely as possible on the
day of the hearing; however, please plan
for the hearings to run either ahead of
schedule or behind schedule.
Additionally, requests to speak will be
taken the day of the hearing at the
hearing registration desk. The EPA will
make every effort to accommodate all
speakers who arrive and register,
although preferences on speaking times
may not be able to be fulfilled.
Each commenter will have 5 minutes
to provide oral testimony. The EPA
encourages commenters to provide the
EPA with a copy of their oral testimony
electronically (via email) or in hard
copy form.
The EPA may ask clarifying questions
during the oral presentations, but will
not respond to the presentations at that
time. Written statements and supporting
information submitted during the
comment period will be considered
with the same weight as oral comments
and supporting information presented at
the public hearing. Commenters should
notify Virginia Hunt if they will need
specific equipment or if there are other
special needs related to providing
comments at the hearings. Verbatim
transcripts of the hearings and written
statements will be included in the
docket for the rulemaking.
Please note that any updates made to
any aspect of the hearing will be posted
online at https://www.epa.gov/
stationary-sources-air-pollution/acetalresins-acrylic-modacrylic-fibers-carbonblack-hydrogen. While the EPA expects
the hearing to go forward as set forth
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above, please monitor our website or
contact Virginia Hunt at (919) 541–0832
or hunt.virginia@epa.gov to determine if
there are any updates. The EPA does not
intend to publish a document in the
Federal Register announcing updates.
The EPA will not provide audiovisual
equipment. Commenters should notify
Virginia Hunt when they pre-register to
speak that they will require the service
of a translator or special
accommodations such as audio
description. The EPA may not be able to
arrange accommodations without
advanced notice.
Dated: October 16, 2019.
Panagiotis Tsirigotis,
Director, Office of Air Quality Planning and
Standards.
[FR Doc. 2019–22967 Filed 10–22–19; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 1
[MD Docket No. 19–105; FCC 19–83]
Assessment and Collection of
Regulatory Fees for Fiscal Year 2019
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
In this document, the Federal
Communications Commission
(Commission) adopted a notice of
proposed rulemaking that seeks
comment on several proposals that will
impact FY 2020 regulatory fees.
DATES: Submit comments on or before
November 22, 2019; and reply
comments on or before December 23,
2019.
ADDRESSES: You may submit comments,
identified by MD Docket No. 19–105, by
any of the following methods:
• Federal Communications
Commission’s Website: https://
www.fcc.gov/cgb/ecfs. Follow the
instructions for submitting comments.
• People with Disabilities: Contact the
FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by email: FCC504@fcc.gov
or phone: 202–418–0530 or TTY: 202–
418–0432.
For detailed instructions for
submitting comments and additional
information on the rulemaking process,
see the SUPPLEMENTARY INFORMATION
section of this document.
FOR FURTHER INFORMATION CONTACT:
Roland Helvajian, Office of Managing
Director at (202) 418–0444.
SUMMARY:
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Federal Register / Vol. 84, No. 205 / Wednesday, October 23, 2019 / Proposed Rules
This is a
summary of the Commission’s Further
Notice of Proposed Rulemaking
(FNPRM), FCC 19–83; MD Docket No.
19–105, adopted on August 15, 2019
and released on August 27, 2019. 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.
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.
SUPPLEMENTARY INFORMATION:
I. Introduction
1. In this FNPRM, we seek additional
comment on several issues to continue
reforming our assessment of regulatory
fees.
II. Further Notice of Proposed
Rulemaking
A. Assessing International Bureau
Regulatees
2. The Commission’s goal in assessing
International Bureau regulatory fees is
to recover all of the costs associated
with International Bureau regulatory
activities and to distribute these costs
fairly among fee payers. But not all
beneficiaries of the International
Bureau’s regulatory activities currently
pay regulatory fees, and some
commenters argue that we should
reexamine the allocations of FTEs
within the bureau. We take this
opportunity to seek comment on
reforming our assessment of regulatory
fees for International Bureau regulatees.
3. First, we seek comment on whether
we should assess regulatory fees on all
space stations granted approval by the
Commission to communicate with earth
stations in the United States. In the past,
the Commission has assessed regulatory
fees on space stations (both
geostationary and non-geostationary
orbit) licensed by the Commission, but
not on foreign-licensed space stations
that have been granted market access by
the Commission.1 The Commission’s
policy, regulatory, international, user
information, and enforcement activities
all benefit non-U.S. licensed space
stations that access the U.S. market.
Rulemaking proceedings establishing
processing procedures or service rules
for satellite services apply both to U.S.
licensed space stations and non-U.S.
licensed space stations providing
1 47
CFR 1.1156.
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service in the United States,2 and
operators of non-U.S. licensed space
stations actively participate in FCC
regulatory proceedings.3 Non-U.S.
licensed space stations are also
monitored to ensure that their operators
satisfy all conditions placed on their
grant of U.S. market access, including
space station implementation
milestones and operational
requirements, and are subject to
enforcement action if the conditions are
not met. Despite the regulatory benefits
provided by the Commission to nonU.S. licensed space stations serving the
United States they do not incur the
regulatory fees paid by operators of
U.S.-licensed space stations.
4. We seek comment on whether we
should or must assess regulatory fees on
non-U.S. licensed space stations serving
the United States under section 9, given
that non-U.S. licensed space stations
appear to benefit from the Commission’s
regulatory activities in much the same
2 See, e.g., Mitigation of Orbital Debris in the New
Space Age, IB Docket No. 18–313, Notice of
Proposed Rulemaking and Order on
Reconsideration, 84 FR 4742 (Feb. 19, 2019), 33
FCC Rcd 11352 (2018); Amendment of Parts 2 and
25 of the Commission’s Rules to Facilitate the Use
of Earth Stations in Motion Communicating with
Non-Geostationary Orbit Space Stations in
Frequency Bands Allocated to the Fixed-Satellite
Service, IB Docket No. 18–315, Notice of Proposed
Rulemaking, 83 FR 67180 (Dec. 28, 2018), 33 FCC
Rcd 11416 (2018); Amendment of the Commission’s
Policies and Rules for Processing Applications in
the Direct Broadcast Satellite Service, IB Docket No.
06–160, Second Notice of Proposed Rulemaking, 84
FR 2126 (Feb. 6, 2019), 33 FCC Rcd 11303 (2018);
Amendment of Parts 2 and 25 of the Commission’s
Rules to Facilitate the Use of Earth Stations in
Motion Communicating with Geostationary Orbit
Space Stations in Frequency Bands Allocated to the
Fixed Satellite Service, IB Docket No 17–95, Report
and Order and Further Notice of Proposed
Rulemaking, 84 FR 53630 (Oct. 8, 2019) and 84 FR
5654 (Feb. 22, 2019), 32 FCC Rcd 9327 (2018);
Further Streamlining Part 25 Rules Governing
Satellite Services, IB Docket No. 18–314, Notice of
Proposed Rulemaking, 84 FR 638 (Jan. 31, 2019), 33
FCC Rcd 11502 (2018); Streamlining Licensing
Procedures for Small Satellites, IB Docket No. 18–
86, Notice of Proposed Rulemaking, 83 FR 24064
(May 24, 2018), 33 FCC Rcd 4152 (2018); Update
to Parts 2 and 25 Concerning Non-Geostationary,
Fixed-Satellite Service Systems and Related
Matters, IB Docket No. 16–408, Report and Order
and Further Notice of Proposed Rulemaking, 82 FR
59972 (Dec. 18, 2017) and 82 FR 52869 (Nov. 15,
2017), 32 FCC Rcd 7809 (2017); Amendment of
Parts 2 and 25 of the Commission’s Rules to
Facilitate the Use of Earth Stations in Motion
Communicating with Geostationary Orbit Space
Stations in Frequency Bands Allocated to the FixedSatellite Service, IB Docket No. 17–95, Notice of
Proposed Rulemaking, 82 FR 27652 (June 16, 2017),
32 FCC Rcd 4239 (2017).
3 Operators of non-U.S. licensed space stations
have actively participated in nearly all of the
satellite rulemaking proceedings over the course of
the last several years. In addition, operators of nonU.S. space stations participate in FCC proceedings
through their membership in the Satellite Industry
Association, including roles as executive members.
See https://www.sia.org/join-sia/.
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manner as U.S. licensed space stations.4
The Commission has previously
declined to assess regulatory fees on
non-U.S. licensed space stations. In
1999, the Commission observed that the
Act at the time only authorized the
Commission to assess space stations
‘‘licensees,’’ i.e., those licensed under
Title III—which does not include nonU.S.-licensed space stations.5 And the
Commission sought comment on
assessing such fees in 2013 and 2014
but ultimately, did not do so.6 We
observe that the change made to section
9 by the RAY BAUM’S Act requires the
Commission to consider increases and
decreases in the ‘‘number of units’’
subject to payment of regulatory fees,
but does not state ‘‘licensees.’’ 7 In this
respect, the ‘‘unit’’ used for assessing
satellite space station regulatory fees is
‘‘per operational station in geostationary
orbit’’ or ‘‘per operational system in
non-geostationary orbit.’’ 8 This broader
language appears equally applicable to
U.S. licensed and non-U.S. licensed
space stations. We seek comment on
whether we may or must assess such
fees.
5. We seek comment on whether
assessing non-U.S. licensed space
stations would promote regulatory
parity among space station operators. Do
any space station operators choose to
seek licensing elsewhere as a means of
arbitraging our current regulatory fee
assessments? Is it fair or equitable to
grant one class of space station
operators a non-statutory exemption
from fees that another class of similarly
situated operators must pay?
Commenters that advocate assessing
regulatory fees on non-U.S. licensed
space stations providing service in the
United States should propose how the
fees should be calculated and applied.
Are there any corner cases, such as
where the non-U.S. licensed space
station operator accesses the U.S.
market solely through one or more U.S.4 See EchoStar August 8 Ex Parte Letter,
Attachment, at 1.
5 Assessment and Collection of Regulatory Fees
for Fiscal Year 1999, Report and Order, 74 FR
400089 (Aug. 11, 2009), 14 FCC Rcd 9896, 9882,
para. 39 (1999) (FY 1999 Report and Order).
6 Assessment and Collection of Regulatory Fees
for Fiscal Year 2014, Notice of Proposed
Rulemaking, Second Further Notice of Proposed
Rulemaking, and Order, 79 FR 37982 (July 3, 2014),
29 FCC Rcd 6417, 6433–34, paras. 47–50 (2014) (FY
2014 NPRM); Assessment and Collection of
Regulatory Fees for Fiscal Year 2013, Notice of
Proposed Rulemaking and Further Notice of
Proposed Rulemaking, 78 FR 34612 (June 10, 2013)
and 79 FR 63883 (Oct. 27, 2014), 28 FCC Rcd 7790,
7809–810, paras. 47–49 (2013) (FY 2013 NPRM).
7 47 U.S.C. 159(c)(1)(A).
8 See Appendix D: Assessment and Collection of
Regulatory Fees for Fiscal Year 2019, Notice of
Proposed Rulemaking, 84 FR 26234 (June 5, 2019).
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Federal Register / Vol. 84, No. 205 / Wednesday, October 23, 2019 / Proposed Rules
licensed earth stations that identify a
non-U.S. licensed space station as a
point of communication? If the
regulatory fee per earth station license is
significantly less than the regulatory fee
assessed per space station, would such
a discrepancy provide an incentive for
space station operators to see U.S.
market access solely through earth
station licenses as a method of
regulatory fee arbitrage? How should we
assess regulatory fees to avoid such
arbitrage? Commenters should also
discuss any other policy implications
that may arise from taking such action,
such as the likelihood that other
countries will choose to assess fees on
U.S.-licensed space stations, and
whether this policy implication is still
relevant in light of the number of U.S.licensed versus non-U.S. licensed space
stations.9
6. We note that the Commission
previously reallocated four International
Bureau FTEs as indirect for regulatory
fee purposes to address the work that
International Bureau FTEs conduct on
market access requests by non-U.S.
licensed space stations.10 The effect of
that decision was to require domestic
broadcasters, wireless providers, ITSPs,
and others to pay for the regulatory
work done on behalf of foreign-licensed
satellite operators. We seek comment on
whether any changes to our direct
International Bureau FTE allocations
would be necessary if regulatory fees are
adopted for non-U.S. licensed space
stations.
7. Second, several commenters have
argued that we should adjust the
apportionment among fee categories
within the International Bureau. For
example, NASCA claims that the
Commission has continued to overrecover regulatory fees from submarine
cable operators because the combined
submarine cable and IBC revenue
requirement is relatively high compared
to the satellite and earth station
categories.11 NASCA argues that the
9 In 2014, the Commission observed that the
majority of the space station applications and
notifications during the preceding three-year period
pertained to non-U.S.-licensed space stations. FY
2014 NPRM, 29 FCC Rcd at 6434, para. 50. In the
period of 2014 through 2018, 48 approvals were
given for geostationary space stations and 14 were
given for non-geostationary systems, according to
the International Bureau’s electronic filing system,
IBFS. Of these, 23 of the 48 approvals were for nonU.S. licensed geostationary space stations, and 7 of
the 14 were for non-U.S. licensed non-geostationary
space station systems.
10 FY 2015 Report and Order, 80 FR 55775 (Sept.
17, 2015), 30 FCC Rcd at 10278, para. 24.
11 NASCA Comments at 12; see also SEA–US May
1 Ex Parte Letter at 2 (contending that the
submarine cable operators pay a disproportionate
share of the regulatory fees allocated to
International Bureau regulatees compared to
terrestrial and satellite IBCs).
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other fee categories account for a much
higher proportion of the FTEs’ activities
in the International Bureau.12 And
EchoStar asserts that the Commission
should examine the allocation of FTEs
among geostationary orbit (GSO) and
non-geostationary orbit (NGSO) space
and earth station operators.13 We seek
comment on whether the Commission
should reallocate FTEs within the
International Bureau. If so, should the
Commission reassess the number of
FTEs working on the issues of various
regulatees or reallocate fees based on
relative capacity of various services? Or
should the Commission use some other
metric to engage in the reallocation? We
also seek comment on whether the
Commission should change its current
allocation of regulatory fees between
submarine cable and satellite and
terrestrial IBCs based on a plan
developed by the IBC industry, with
87.6% of IBC fees paid by submarine
cable and 12.4% by satellite/terrestrial
facilities. Commenters should discuss
whether certain apportionments within
the International Bureau could be more
appropriately adjusted to better reflect
the amount of oversight and regulation
for these industries.
B. Adjusting TV and Radio Broadcaster
Regulatory Fees
8. We seek comment on two
suggestions by commenters to further
adjust our assessment of broadcaster
regulatory fees. First, we seek comment
on adjusting the regulatory fees paid by
VHF broadcasters. The VHF television
band occupies frequencies between 54
and 216 MHz and in general, VHF
channels are numbered 2 to 13.
Commenters on the FY 2019 NPRM
argue that the predicted contour
distance does not adequately account
for all of the possible effects on the VHF
station signal, such as terrain blockage,
which may limit the signal, thereby
reducing the population number that is
actually reached.14 Commenters
contend that the population count is
therefore overstated for VHF stations
and should be adjusted downward
accordingly.15 Should we adjust
population counts in our contour
modeling to address such concerns, and
if so, how?
9. Second, we seek comment on
whether we should adopt a lower
regulatory fee for full-service AM and
FM broadcast radio station incubator
licensees. The Commission’s broadcast
12 NASCA
Reply Comments at 4.
August 8 Ex Parte Letter, Attachment,
13 EchoStar
incubator program is intended to create
ownership opportunities for new
entrants that are small businesses and
promote competition and diversity in
the radio broadcast industry.16 MMTC
asserts that regulatory fees may make it
more difficult for the incubator stations
to thrive, and the Commission should
exempt them from regulatory fees for
the term of the license.17 Commenters
should discuss an appropriate reduction
from the regulatory fee for broadcasters,
such as 50%.
III. Procedural Matters
A. Ex Parte Information
10. This proceeding shall be treated as
a ‘‘permit-but-disclose’’ proceeding in
accordance with the Commission’s ex
parte rules.18 Persons making ex parte
presentations must file a copy of any
written presentation or a memorandum
summarizing any oral presentation
within two business days after the
presentation (unless a different deadline
applicable to the Sunshine period
applies). Persons making oral ex parte
presentations are reminded that
memoranda summarizing the
presentation must (1) list all persons
attending or otherwise participating in
the meeting at which the ex parte
presentation was made, and (2)
summarize all data presented and
arguments made during the
presentation. If the presentation
consisted in whole or in part of the
presentation of data or arguments
already reflected in the presenter’s
written comments, memoranda, or other
filings in the proceeding, the presenter
may provide citations to such data or
arguments in his or her prior comments,
memoranda, or other filings (specifying
the relevant page and/or paragraph
numbers where such data or arguments
can be found) in lieu of summarizing
them in the memorandum. Documents
shown or given to Commission staff
during ex parte meetings are deemed to
be written ex parte presentations and
must be filed consistent with § 1.1206(b)
of the Commission’s rules. In
proceedings governed by § 1.49(f) of the
Commission’s rules or for which the
Commission has made available a
method of electronic filing, written ex
parte presentations and memoranda
summarizing oral ex parte
presentations, and all attachments
thereto, must be filed through the
electronic comment filing system
available for that proceeding, and must
be filed in their native format (e.g., .doc,
at 1.
14 TZS
Comments at 2; NAB Reply Comments at
15 TZS
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16 MMTC
Comments at 1.
Comments at 2.
18 47 CFR 1.1200 through 1.1216.
17 MMTC
8–9.
Comments at 2; PMCM Comments at 2–3.
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Federal Register / Vol. 84, No. 205 / Wednesday, October 23, 2019 / Proposed Rules
.xml, .ppt, searchable .pdf). Participants
in this proceeding should familiarize
themselves with the Commission’s ex
parte rules.
B. Filing Instructions
11. Pursuant to §§ 1.415 and 1.419 of
the Commission’s rules, 47 CFR 1.415,
1.419, interested parties may file
comments and reply comments on or
before the dates indicated on the first
page of this document. Comments may
be filed using the Commission’s
Electronic Comment Filing System
(ECFS). See Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121 (1998).
• Electronic Filers: Comments may be
filed electronically using the internet by
accessing the ECFS: https://apps.fcc.gov/
ecfs/.
• Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. If more than one
docket or rulemaking number appears in
the caption of this proceeding, filers
must submit two additional copies for
each additional docket or rulemaking
number.
Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
• All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th St. SW, Room TW–A325,
Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes and boxes must be disposed
of before entering the building.
• Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to FCC,
9050 Junction Drive, Annapolis
Junction, MD 20701.
• U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW,
Washington, DC 20554.
12. People with Disabilities: To
request materials in accessible formats
for people with disabilities (braille,
large print, electronic files, audio
format), send an email to fcc504@fcc.gov
or call the Consumer & Governmental
Affairs Bureau at 202–418–0530 (voice),
202–418–0432 (tty).
C. Initial Regulatory Flexibility Analysis
13. An initial regulatory flexibility
analysis (IRFA) is contained in this
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summary. Comments to the IRFA must
be identified as responses to the IRFA
and filed by the deadlines for comments
on the Notice of Proposed Rulemaking
(84 FR 26234 (June 5, 2019)). The
Commission will send a copy of the
Notice of Proposed Rulemaking,
including the IRFA, to the Chief
Counsel for Advocacy of the Small
Business Administration.
D. Initial Paperwork Reduction Act of
1995 Analysis
14. 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).
IV. Initial Regulatory Flexibility
Analysis
15. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA),19 the Commission prepared this
Initial Regulatory Flexibility Analysis
(IRFA) of the possible significant
economic impact on small entities by
the policies and rules proposed in the
FNPRM. Written comments are
requested on this IRFA. Comments must
be identified as responses to the IRFA
and must be filed by the deadline for
comments on this Further Notice. The
Commission will send a copy of the
FNPRM, including the IRFA, to the
Chief Counsel for Advocacy of the Small
Business Administration (SBA).20 In
addition, the FNPRM and IRFA (or
summaries thereof) will be published in
the Federal Register.21
A. Need for, and Objectives of, the
Further Notice
16. The FNPRM seeks comment on (i)
adding a new fee category for non-U.S.
licensed satellite operators who have
been granted access to the U.S. market;
(ii) adjusting the apportionment among
fee categories within the International
Bureau; (iii) adjusting TV broadcaster
regulatory fees for VHF licenses; and
(iv) adopting a lower regulatory fee for
broadcast incubator licensees. These
issues may be further addressed in the
annual regulatory fee Notice of
Proposed Rulemaking for next year. The
19 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).
20 5 U.S.C. 603(a).
21 Id.
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Commission is required by Congress to
adopt regulatory fees each year ‘‘to
recover the costs of carrying out the
activities described in section 6(a) only
to the extent, and in the total amounts,
provided for in Appropriation Acts.’’ 22
B. Legal Basis
17. This action, including publication
of proposed rules, is authorized under
sections (4)(i) and (j), 9, 9A, and 303(r)
of the Communications Act of 1934, as
amended.23
C. Description and Estimate of the
Number of Small Entities to Which the
Rules Will Apply
18. 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.24 The RFA generally defines
the term ‘‘small entity’’ as having the
same meaning as the terms ‘‘small
business,’’ ‘‘small organization,’’ and
‘‘small governmental jurisdiction.’’ 25 In
addition, the term ‘‘small business’’ has
the same meaning as the term ‘‘small
business concern’’ under the Small
Business Act.26 A ‘‘small business
concern’’ is one which: (1) Is
independently owned and operated; (2)
is not dominant in its field of operation;
and (3) satisfies any additional criteria
established by the SBA.27
19. Small Entities. Our actions, over
time, may affect small entities that are
not easily categorized at present. We
therefore describe here, at the outset,
three comprehensive small entity size
standards that could be directly affected
by the proposals under consideration.28
As of 2009, small businesses
represented 99.9 percent of the 27.5
million businesses in the United States,
according to the SBA.29 In addition, a
‘‘small organization is generally any notfor-profit enterprise which is
independently owned and operated and
22 47
U.S.C. 159(a).
U.S.C. 154(i) and (j), 159, 159A, and 303(r).
24 5 U.S.C. 603(b)(3).
25 5 U.S.C. 601(6).
26 5 U.S.C. 601(3) (adopting by reference the
definition of ‘‘small-business concern’’ in the Small
Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C.
601(3), the statutory definition of a small business
applies ‘‘unless an agency, after consultation with
the Office of Advocacy of the Small Business
Administration and after opportunity for public
comment, establishes one or more definitions of
such term which are appropriate to the activities of
the agency and publishes such definition(s) in the
Federal Register.’’
27 15 U.S.C. 632.
28 See 5 U.S.C. 601(3)–(6).
29 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ available at https://
www.sba.gov/sites/default/files/advocacy/SB-FAQ2016_WEB.pdf.
23 47
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not dominant in its field.30 In addition,
the term ‘‘small governmental
jurisdiction’’ is defined generally as
‘‘governments of cities, towns,
townships, villages, school districts, or
special districts, with a population of
less than fifty thousand.’’ 31 U.S. Census
Bureau data for 2011 indicate that there
were 90,056 local governmental
jurisdictions in the United States.32 We
estimate that, of this total, as many as
89,327 entities may qualify as ‘‘small
governmental jurisdictions.’’ 33 Thus,
we estimate that most local government
jurisdictions are small.
20. 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 and IPTV) 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.’’ 34 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.35 Census data
for 2012 shows that there were 3,117
firms that operated that year. Of this
total, 3,083 operated with fewer than
30 5
U.S.C. 601(4).
U.S.C. 601(5).
32 See SBA, Office of Advocacy, ‘‘Frequently
Asked Questions,’’ available at https://
www.sba.gov/sites/default/files/advocacy/SB-FAQ2016_WEB.pdf.
33 The 2011 U.S. Census Data for small
governmental organizations are not presented based
on the size of the population in each organization.
As stated above, there were 90,056 local
governmental organizations in 2011. As a basis for
estimating how many of these 90,056 local
governmental organizations were small, we note
that there were a total of 729 cities and towns
(incorporated places and civil divisions) with
populations over 50,000. See https://
factfinder.census.gov/faces/tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table. If we subtract the 729
cities and towns that exceed the 50,000 population
threshold, we conclude that approximately 789,237
are small.
34 See https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
35 See 13 CFR 120.201, NAICS code 517110.
31 5
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1,000 employees.36 Thus, under this
size standard, the majority of firms in
this industry can be considered small.
21. Local Exchange Carriers (LECs).
Neither the Commission nor the SBA
has developed a size standard for small
businesses specifically applicable to
local exchange services. The closest
applicable NAICS code category is for
Wired Telecommunications Carriers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.37 According to census data
from 2012, there were 3,117
establishments that operated that year.
Of this total, 3,083 operated with fewer
than 1,000 employees.38 The
Commission estimates that most
providers of local exchange service are
small entities that may be affected by
the rules proposed in the Further
Notice.
22. Incumbent LECs. Neither the
Commission nor the SBA has developed
a small business size standard
specifically for incumbent local
exchange services. The closest
applicable NAICS code category is
Wired Telecommunications Carriers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.39 According to census data
from 2012, 3,117 firms operated in that
year. Of this total, 3,083 operated with
fewer than 1,000 employees.40
According to Commission data, 1,307
carriers reported that they were
incumbent local exchange service
providers.41 Of this total of 1,307
incumbent local exchange service
providers, an estimated 1,006 operated
with 1,500 or fewer employees.42
Consequently, the Commission
estimates that most providers of
incumbent local exchange service are
small businesses that may be affected by
the rules proposed in this Further
Notice.
23. Competitive Local Exchange
Carriers (Competitive LECs),
Competitive Access Providers (CAPs),
36 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_51SSSZ5
&prodType= table .
37 13 CFR 121.201, NAICS code 517110.
38 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_51SSSZ5
&prodType= table.
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 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).
42 See id.
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Shared-Tenant Service Providers, and
Other Local Service Providers. Neither
the Commission nor the SBA has
developed a small business size
standard specifically for these service
providers. The appropriate NAICS code
category is Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees.43 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.44 Based on this data, the
Commission concludes that the majority
of Competitive LECs, CAPs, SharedTenant Service Providers, and Other
Local Service Providers are small
entities. According to the Commission
data, 1,442 carriers reported that they
were engaged in the provision of either
competitive local exchange services or
competitive access provider services.45
Of these 1,442 carriers, an estimated
1,256 have 1,500 or fewer employees. In
addition, 17 carriers have reported that
they are Shared-Tenant Service
Providers, and all 17 are estimated to
have 1,500 or fewer employees.46 Also,
72 carriers have reported that they are
Other Local Service Providers.47 Of this
total, 70 have 1,500 or fewer
employees.48 Consequently, the
Commission estimates that most
providers of competitive local exchange
service, competitive access providers,
Shared-Tenant Service Providers, and
Other Local Service Providers are small
entities that may be affected by rules
proposed in this Further Notice.
24. Interexchange Carriers (IXCs).
Neither the Commission nor the SBA
has developed a definition for
Interexchange Carriers. The closest
NAICS code category is Wired
Telecommunications Carriers as defined
in paragraph 6 of this IRFA. The
applicable size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.49 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.50 According to
Commission data, 359 companies
reported that their primary
43 13
CFR 121.201, NAICS code 517110.
44 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
45 See Trends in Telephone Service, at Table 5.3.
46 Id.
47 Id.
48 Id.
49 13 CFR 121.201, NAICS code 517110.
50 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
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telecommunications service activity was
the provision of interexchange
services.51 Of this total, an estimated
317 have 1,500 or fewer employees.
Consequently, the Commission
estimates that the majority of
interexchange service providers are
small entities that may be affected by
rules proposed in this Further Notice.
25. Prepaid Calling Card Providers.
Neither the Commission nor the SBA
has developed a small business size
standard specifically for prepaid calling
card providers. The appropriate NAICS
code category for prepaid calling card
providers is Telecommunications
Resellers. This industry comprises
establishments engaged in purchasing
access and network capacity from
owners and operators of
telecommunications networks and
reselling wired and wireless
telecommunications services (except
satellite) to businesses and households.
Establishments in this industry resell
telecommunications; they do not
operate transmission facilities and
infrastructure. Mobile virtual networks
operators (MVNOs) are included in this
industry.52 Under the applicable SBA
size standard, such a business is small
if it has 1,500 or fewer employees.53
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.54 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.55 All 193 carriers
have 1,500 or fewer employees.56
Consequently, the Commission
estimates that the majority of prepaid
calling card providers are small entities
that may be affected by rules proposed
in this Further Notice.
26. 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
51 See
Trends in Telephone Service, at Table 5.3.
52 https://www.census.gov/cgi-bin/ssd/naics/
naicsrch.
53 13 CFR 121.201, NAICS code 517911.
54 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
55 See Trends in Telephone Service, at Table 5.3.
56 Id.
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employees.57 Census data for 2012 show
that 1,341 firms provided resale services
during that year.58 Of that number,
1,341 operated with fewer than 1,000
employees.59 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.60 Of this total, an estimated
211 have 1,500 or fewer employees.61
Consequently, the Commission
estimates that the majority of local
resellers are small entities that may be
affected by rules proposed in this
Further Notice.
27. 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.62 Under that size standard,
such a business is small if it has 1,500
or fewer employees.63 Census data for
2012 show that 1,341 firms provided
resale services during that year.64 Of
that number, 1,341 operated with fewer
than 1,000 employees.65 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.66 Of this total, an estimated
857 have 1,500 or fewer employees.67
Consequently, the Commission
estimates that the majority of toll
resellers are small entities that may be
affected by the rules proposed in the
Further Notice.
28. Other Toll Carriers. Neither the
Commission nor the SBA has developed
a size standard for small businesses
specifically applicable to Other Toll
Carriers. This category includes toll
carriers that do not fall within the
57 13
CFR 121.201, NAICS code 517911.
56739
categories of interexchange carriers,
operator service providers, prepaid
calling card providers, satellite service
carriers, or toll resellers. The closest
applicable NAICS code category is for
Wired Telecommunications Carriers, as
defined in paragraph 6 of this IRFA.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees.68 Census data for 2012
shows that there were 3,117 firms that
operated that year.69 Of this total, 3,083
operated with fewer than 1,000
employees.70 Thus, under this category
and the associated small business size
standard, the majority of Other Toll
Carriers can be considered small.
According to Commission data, 284
companies reported that their primary
telecommunications service activity was
the provision of other toll carriage.71 Of
these, an estimated 279 have 1,500 or
fewer employees.72 Consequently, the
Commission estimates that most Other
Toll Carriers are small entities that may
be affected by the rules proposed in the
Further Notice.
29. 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.73 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.74 Of this total, 955 firms had
fewer than 1,000 employees.75 Thus
under this category and the associated
size standard, the Commission estimates
that the majority of wireless
telecommunications carriers (except
satellite) are small entities. Similarly,
according to Commission data, 413
58 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
59 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
60 See Trends in Telephone Service, at Table 5.3.
61 Id.
62 13 CFR 121.201, NAICS code 517911.
63 Id.
64 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
65 Id.
66 Trends in Telephone Service, at Table. 5.3.
67 Id.
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68 13
CFR 121.201, NAICS code 517110.
69 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
70 Id.
71 Trends in Telephone Service, at Table 5.3.
72 Id.
73 NAICS code 517210. See https://
www.census.gov/cgi-bin/ssd/naics/naiscsrch.
74 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
75 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
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carriers reported that they were engaged
in the provision of wireless telephony,
including cellular service, Personal
Communications Service (PCS), and
Specialized Mobile Radio (SMR)
services.76 Of this total, an estimated
261 have 1,500 or fewer employees.77
Thus, using available data, we estimate
that the majority of wireless firms can
be considered small and may be affected
by rules proposed in this Further Notice.
30. 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.’’ 78 These establishments also
produce or transmit visual programming
to affiliated broadcast television
stations, which in turn broadcast the
programs to the public on a
predetermined schedule.
Programming may originate in their
own studio, from an affiliated network,
or from external sources. The SBA has
created the following small business
size standard for Television
Broadcasting firms: Those having $38.5
million or less in annual receipts.79 The
2012 Economic Census reports that 751
television broadcasting firms operated
during that year. Of that number, 656
had annual receipts of less than $25
million per year. Based on that Census
data we conclude that a majority of
firms that operate television stations are
small. The Commission has estimated
the number of licensed commercial
television stations to be 1,387.80 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.81 We therefore estimate that the
majority of commercial television
broadcasters are small entities.
31. In assessing whether a business
concern qualifies as small under the
above definition, business (control)
affiliations 82 must be included. Our
76 Trends
in Telephone Service, at Table 5.3.
77 Id.
78 U.S. Census Bureau, 2012 NAICS code
Economic Definitions, https://www.census.gov.cgibin/sssd/naics/naicsrch.
79 13 CFR 121.201, NAICS code 515120.
80 See FCC News Release, ‘‘Broadcast Station
Totals as of December 31, 2011,’’ dated January 6,
2012; https://transition.fcc.gov/Daily_Releases/
Daily_Business/2012/db0106/DOC-311837A1.pdf.
81 We recognize that BIA’s estimate differs
slightly from the FCC total given supra.
82 ‘‘[Business concerns] are affiliates of each other
when one concern controls or has the power to
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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.
32. In addition, the Commission has
estimated the number of licensed
noncommercial educational (NCE)
television stations to be 396.83 These
stations are non-profit, and therefore
considered to be small entities.84 There
are also 2,528 low power television
stations, including Class A stations
(LPTV).85 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.
33. Radio Broadcasting. This
Economic Census category ‘‘comprises
establishments primarily engaged in
broadcasting programs by radio to the
public. Programming may originate in
their own studio, from an affiliated
network, or from external sources.’’ 86
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.87 U.S.
Census data for 2012 show that 2,849
radio station firms operated during that
year.88 Of that number, 2,806 operated
with annual receipts of less than $25
million per year.89 According to
control the other or a third party or parties controls
or has to power to control both.’’ 13 CFR
21.103(a)(1).
83 See FCC News Release, ‘‘Broadcast Station
Totals as of December 31, 2011,’’ dated January 6,
2012; https://transition.fcc.gov/Daily_Releases/
Daily_Business/2012/db0106/DOC-311837A1.pdf.
84 See generally 5 U.S.C. 601(4), (6).
Noncommercial television stations are not required
to pay regulatory fees. 47 U.S.C. 159(e)(1)(C).
85 See FCC News Release, ‘‘Broadcast Station
Totals as of December 31, 2011,’’ dated January 6,
2012; https://transition.fcc.gov/Daily_Releases/
Daily_Business/2012/db0106/DOC-311837A1.pdf.
86 https://www.census.gov.cgi-bin/sssd/naics/
naicsrch.
87 13 CFR 121.201, NAICS code 515112.
88 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ5&prodType=table.
89 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid=
ECN_2012_US_51SSSZ5&prodType=table.
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Commission staff review of BIA
Advisory Services, LLC’s Media Access
Pro Radio Database on March 28, 2012,
about 10,759 (97 percent) of 11,102
commercial radio stations had revenues
of $38.5 million or less. Therefore, the
majority of such entities are small
entities.
34. In assessing whether a business
concern qualifies as small under the
above size standard, business
affiliations must be included.90 In
addition, to be determined to be a
‘‘small business,’’ the entity may not be
dominant in its field of operation.91 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.
35. Cable Television and other
Subscription Programming. This
industry comprises establishments
primarily engaged in operating studios
and facilities for the broadcasting of
programs on a subscription or fee basis.
The broadcast programming is typically
narrowcast in nature, e.g., limited
format, such as news, sports, education,
or youth-oriented. These establishments
produce programming in their own
facilities or acquire programming from
external sources. The programming
material is usually delivered to a third
party, such as cable systems or directto-home satellite systems, for
transmission to viewers.92 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.93 Of this
total, 319 operated with annual receipts
of less than $25 million.94 Thus under
this size standard, the majority of firms
offering cable and other program
distribution services can be considered
small and may be affected by rules
proposed in this Further Notice.
36. 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.95
90 ‘‘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).
91 13 CFR 121.102(b) (an SBA regulation).
92 https://www.census.gov.cgi-bin/sssd/naics/
naicsrch.
93 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid=
ECN_2012_US_51SSSZ5&prodType=table.
94 https://factfinder.census.gov/faces/
tableservices/jsf/pages/productview.xhtml?pid=
ECN_2012_US-51SSSZ5&prodType=Table.
95 47 CFR 76.901(e).
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Industry data indicate that there are
currently 4,600 active cable systems in
the United States.96 Of this total, all but
ten cable operators nationwide are small
under the 400,000-subscriber size
standard.97 In addition, under the
Commission’s rate regulation rules, a
‘‘small system’’ is a cable system serving
15,000 or fewer subscribers.98 Current
Commission records show 4,600 cable
systems nationwide.99 Of this total,
3,900 cable systems have less than
15,000 subscribers, and 700 systems
have 15,000 or more subscribers, based
on the same records.100 Thus, under this
standard as well, the Commission
estimates that most cable systems are
small entities.
37. 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.’’ 101
There are approximately 52,403,705
cable video subscribers in the United
States today.102 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.103
Based on available data, we find that all
but nine incumbent cable operators are
small entities under this size
standard.104 The Commission neither
requests nor collects information on
whether cable system operators are
affiliated with entities whose gross
annual revenues exceed $250
million.105 Although it seems certain
96 August 15, 2015 Report from the Media Bureau
based on data contained in the Commission’s Cable
Operations and Licensing System (COALS). See
www/fcc.gov/coals.
97 See SNL KAGAN at www.snl.com/interactiveX/
topcableMSOs aspx?period2015Q1&sortcol=
subscribersbasic&sortorder=desc.
98 47 CFR 76.901(c).
99 See footnote 2, supra.
100 August 5, 2015 report from the Media Bureau
based on its research in COALS. See www.fcc.gov/
coals.
101 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
102 See SNL KAGAN at www.snl.com/
interactivex/
MultichannelIndustryBenchmarks.aspx.
103 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
104 See SNL KAGAN at www.snl.com/
Interactivex/TopCable MSOs.aspx.
105 The Commission does receive such
information on a case-by-case basis if a cable
operator appeals a local franchise authority’s
finding that the operator does not qualify as a small
cable operator pursuant to 47 CFR 76.901(f) of the
Commission’s rules. See 47 CFR 76.901(f).
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that some of these cable system
operators are affiliated with entities
whose gross annual revenues exceed
$250,000,000, we are unable at this time
to estimate with greater precision the
number of cable system operators that
would qualify as small cable operators
under the definition in the
Communications Act.
38. 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.106
The SBA determines that a wireline
business is small if it has fewer than
1500 employees.107 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.108
Based on that data, we conclude that the
majority of wireline firms are small
under the applicable standard.
However, currently only two entities
provide DBS service, which requires a
great deal of capital for operation: AT&T
and DISH Network.109 AT&T and DISH
Network each report annual revenues
that are in excess of the threshold for a
small business. Accordingly, we must
conclude that DBS service is provided
only by large firms.
106 https://www.census.gov/cgi-bin/sssd/naics/
naicsrch.
107 NAICs code 517110; 13 CFR 121.201.
108 https://factfinder.census.gov/faces/
tableservices.jasf/pages/productview.xhtml?
pid+ECN_2012_US.51SSSZ4&prodType=table.
109 See 15th Annual Video Competition Report,
28 FCC Rcd at 1057, Section 27.
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56741
39. 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.110 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.111 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.112 Thus, a majority of ‘‘All
Other Telecommunications’’ firms
potentially affected by the proposals in
the Further Notice can be considered
small.
40. RespOrgs. Responsible
Organizations, or RespOrgs, are entities
chosen by toll free subscribers to
manage and administer the appropriate
records in the toll free Service
Management System for the toll free
subscriber.113 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.
41. 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,114
and Wireless Telecommunications
Carriers (except satellite).115
110 https://www.census.gov/cgi-bin/ssssd/naics/
naicsrch.
111 13 CFR 121.201; NAICs code 517919.
112 https://factfinder.census.gov/faces/
tableservices.jasf/pages/
productview.xhtml?pid+ECN_2012_
US.51SSSZ4&prodType=table.
113 See 47 CFR 52.101(b).
114 13 CFR 121.201, NAICS code 517110.
115 Id.
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42. 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.116 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.117 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.118 Based on
that data, we conclude that the majority
of Carrier RespOrgs that operated with
wireline-based technology are small.
43. The U.S. Census Bureau defines
Wireless Telecommunications Carriers
(except satellite) as establishments
engaged in operating and maintaining
switching and transmission facilities to
provide communications via the
airwaves, such as cellular services,
paging services, wireless internet access,
and wireless video services.119 The
appropriate size standard under SBA
rules is that such a business is small if
it has 1,500 or fewer employees.120
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.121 Based on that data, we
conclude that the majority of Carrier
116 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
117 13 CFR 120,201, NAICS code 517110.
118 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ4&prodType=table.
119 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
120 13 CFR 120.201, NAICS code 517120.
121 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ4&prodType=table.
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RespOrgs that operated with wirelessbased technology are small.
44. Non-Carrier RespOrgs. Neither the
Commission, the U.S. Census, nor the
SBA have developed a definition of
Non-Carrier RespOrgs. Accordingly, the
Commission believes that the closest
NAICS code-based definitional
categories for Non-Carrier RespOrgs are
‘‘Other Services Related to
Advertising’’ 122 and ‘‘Other
Management Consulting Services.’’ 123
45. 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).124 The
SBA has established a size standard for
this industry as annual receipts of $15
million dollars or less.125 Census data
for 2012 show that 5,804 firms operated
in this industry for the entire year. Of
that number, 5,612 operated with
annual receipts of less than $10
million.126 Based on that data we
conclude that the majority of NonCarrier RespOrgs who provide toll-free
number (TFN)-related advertising
services are small.
46. 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.127 The SBA
has established a size standard for this
industry of $15 million dollars or
less.128 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.129 Based on this data,
122 13
CFR 120.201, NAICS code 541890.
CFR 120.201, NAICS code 541618.
124 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
125 13 CFR 120.201, NAICS code 541890.
126 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
productview.xhtml?pid=ECN_2012_US_
51SSSZ4&prodType=table.
127 https://www.census,gov/cgi-bin/sssd/
naics.naicsrch.
128 13 CFR 120.201, NAICS code 514618.
129 https://factfinder.census.gov/faces/
tableservices/jsf/pages/
123 13
PO 00000
Frm 00036
Fmt 4702
Sfmt 4702
we conclude that a majority of noncarrier RespOrgs who provide TFNrelated management consulting services
are small.130
47. In addition to the data contained
in the four (see above) U.S. Census
NAICS code categories that provide
definitions of what services and
functions the Carrier and Non-Carrier
RespOrgs provide, Somos, the trade
association that monitors RespOrg
activities, compiled data showing that
as of July 1, 2016 there were 23
RespOrgs operational in Canada and 436
RespOrgs operational in the United
States, for a total of 459 RespOrgs
currently registered with Somos.
D. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
48. This Further Notice does not
propose any changes to the
Commission’s current information
collection, reporting, recordkeeping, or
compliance requirements.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
49. 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.131
50. This FNPRM seeks comment on
issues that the Commission may address
in the regulatory fee collection for Fiscal
Year 2020. Specifically, the FNPRM
seeks comment on (i) adding a new fee
category for non-U.S. licensed satellite
operators who have been granted access
to the U.S. market; (ii) adjusting the
apportionment among fee categories
within the International Bureau; (iii)
adjusting TV broadcaster regulatory fees
for VHF licenses; and (iv) adopting a
lower regulatory fee for broadcast
incubator licensees. Some of these
productview.xhtml?pid=ECN_2012_US_
51SSSZ4&prodType=table.
130 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.
131 5 U.S.C. 603(c)(1)–(c)(4).
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Federal Register / Vol. 84, No. 205 / Wednesday, October 23, 2019 / Proposed Rules
issues may affect small entities. For
example, revising intra-bureau
allocations in the International Bureau
could result in changes of regulatory
fees for small entities, if this is adopted.
Adjusting regulatory fees for TV
broadcasters that hold VHF broadcast
licenses could affect small entities, and
ultimately provide them a benefit in the
form of lower regulatory fees, if the
Commission adjusts VHF fees in the
future. Incubator licensees will likely be
small entities and adopting a lower
regulatory fee for them would benefit
small entities. These issues in the
FNPRM may be addressed in the FY
2020 annual regulatory fee notice of
proposed rulemaking.
F. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rules
51. None.
V. Ordering Clauses
52. 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 Further Notice of
Proposed Rulemaking is hereby
adopted.
Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2019–22914 Filed 10–22–19; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Parts 1 and 96
[AU Docket No. 19–244; FCC 19–96]
Auction of Priority Access Licenses for
the 3550–3650 MHz Band; Comment
Sought on Competitive Bidding
Procedures for Auction 105; Bidding in
Auction 105 Scheduled To Begin June
25, 2020
Federal Communications
Commission.
ACTION: Proposed rule; proposed auction
procedures.
AGENCY:
In this document, the
Commission announces auctions of
Priority Access Licenses for the 3550–
3650 MHz Band, designated as Auction
105. This document proposes and seeks
comment on competitive bidding
procedures to be used for Auction 105.
DATES: Comments are due on or before
October 28, 2019, and reply comments
are due on or before November 12, 2019.
ADDRESSES: Comments may be filed
using the Commission’s Electronic
SUMMARY:
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17:05 Oct 22, 2019
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Comment Filing System (ECFS) or by
filing paper copies. Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121 (May 1, 1998). All filings
in response to the Auction 105
Comment Public Notice must refer to
AU Docket No. 19–244. The
Commission strongly encourages
interested parties to file comments
electronically and requests that an
additional copy of all comments and
reply comments be submitted
electronically to the following email
address: auction105@fcc.gov.
Electronic Filers: Comments may be
filed electronically using the internet by
accessing the ECFS: https://
www.fcc.gov/ecfs/. Filers should follow
the instructions provided on the website
for submitting comments. In completing
the transmittal screen, filers should
include their full name, U.S. Postal
Service mailing address, and the
applicable docket number, AU Docket
No. 19–244.
Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. If more than one
docket or rulemaking number appears in
the caption of this proceeding, filers
must submit two additional copies for
each additional docket or rulemaking
number. Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th St. SW, Room TW–A325,
Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes and boxes must be disposed
of before entering the building.
Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9050
Junction Drive, Annapolis Junction, MD
20701.
U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW,
Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT: For
auction legal questions, Mary Lovejoy or
Kelly Quinn in the Auctions Division of
the Office of Economics and Analytics
at (202) 418–0660. For general auction
questions, the Auctions Hotline at (717)
338–2868. For Priority Access License
questions, Jessica Quinley in the
PO 00000
Frm 00037
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56743
Wireless Telecommunications Bureau’s
Mobility Division at (202) 418–1991.
SUPPLEMENTARY INFORMATION: This is a
summary of the Public Notice (Auction
105 Comment Public Notice), AU
Docket No. 19–244, FCC 19–96, adopted
on September 26, 2019 and released on
September 27, 2019. The Auction 105
Comment Public Notice includes the
following attachment: Attachment A,
Summary of Licenses to Be Auctioned.
The complete text of the Auction 105
Comment Public Notice, including its
attachment, is available for public
inspection and copying from 8:00 a.m.
to 4:30 p.m. Eastern Time (ET) Monday
through Thursday or from 8:00 a.m. to
11:30 a.m. ET on Fridays in the FCC
Reference Information Center, 445 12th
Street SW, Room CY–A257,
Washington, DC 20554. The complete
text is also available on the
Commission’s website at www.fcc.gov/
auction/105/ or by using the search
function for AU Docket No. 19–244 on
the Commission’s ECFS web page at
www.fcc.gov/ecfs/. Alternative formats
are available to persons with disabilities
by sending an email to FCC504@fcc.gov
or by calling the Consumer &
Governmental Affairs Bureau at (202)
418–0530 (voice), (202) 418–0432
(TTY). Pursuant to Sections 1.415 and
1.419 of the Commission’s rules, 47 CFR
1.415, 1.419, interested parties may file
comments and reply comments on or
before the dates indicated in the
Auction 105 Comment Public Notice in
AU Docket No. 19–244.
I. Introduction
1. By the Auction 105 Comment
Public Notice, the Commission seeks
comment on the procedures to be used
for Auction 105, the auction of Priority
Access Licenses (PALs) in the 3550–
3650 MHz band. Bidding in the auction
is scheduled to commence on June 25,
2020. By initiating the pre-bidding
process for assigning licenses in
Auction 105, the Commission takes an
important step toward releasing flexibleuse mid-band spectrum to the market
and furthering deployment of fifthgeneration wireless, the Internet of
Things, and other advanced spectrumbased services in the United States.
II. Licenses To Be Offered in Auction
105
2. Auction 105 will offer seven PALs
in each county-based license area and
counties shall be defined using the
United States Census Bureau’s data
reflecting county legal boundaries and
names valid through January 1, 2017.
Each PAL consists of a 10-megahertz
unpaired channel within the 3550–3650
MHz band. The auction will offer a total
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]]>Agencies
[Federal Register Volume 84, Number 205 (Wednesday, October 23, 2019)]
[Proposed Rules]
[Pages 56734-56743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22914]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 19-105; FCC 19-83]
Assessment and Collection of Regulatory Fees for Fiscal Year 2019
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) adopted a notice of proposed rulemaking that seeks comment
on several proposals that will impact FY 2020 regulatory fees.
DATES: Submit comments on or before November 22, 2019; and reply
comments on or before December 23, 2019.
ADDRESSES: You may submit comments, identified by MD Docket No. 19-105,
by any of the following methods:
Federal Communications Commission's Website: https://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.
[[Page 56735]]
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's
Further Notice of Proposed Rulemaking (FNPRM), FCC 19-83; MD Docket No.
19-105, adopted on August 15, 2019 and released on August 27, 2019. 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. 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.
I. Introduction
1. In this FNPRM, we seek additional comment on several issues to
continue reforming our assessment of regulatory fees.
II. Further Notice of Proposed Rulemaking
A. Assessing International Bureau Regulatees
2. The Commission's goal in assessing International Bureau
regulatory fees is to recover all of the costs associated with
International Bureau regulatory activities and to distribute these
costs fairly among fee payers. But not all beneficiaries of the
International Bureau's regulatory activities currently pay regulatory
fees, and some commenters argue that we should reexamine the
allocations of FTEs within the bureau. We take this opportunity to seek
comment on reforming our assessment of regulatory fees for
International Bureau regulatees.
3. First, we seek comment on whether we should assess regulatory
fees on all space stations granted approval by the Commission to
communicate with earth stations in the United States. In the past, the
Commission has assessed regulatory fees on space stations (both
geostationary and non-geostationary orbit) licensed by the Commission,
but not on foreign-licensed space stations that have been granted
market access by the Commission.\1\ The Commission's policy,
regulatory, international, user information, and enforcement activities
all benefit non-U.S. licensed space stations that access the U.S.
market. Rulemaking proceedings establishing processing procedures or
service rules for satellite services apply both to U.S. licensed space
stations and non-U.S. licensed space stations providing service in the
United States,\2\ and operators of non-U.S. licensed space stations
actively participate in FCC regulatory proceedings.\3\ Non-U.S.
licensed space stations are also monitored to ensure that their
operators satisfy all conditions placed on their grant of U.S. market
access, including space station implementation milestones and
operational requirements, and are subject to enforcement action if the
conditions are not met. Despite the regulatory benefits provided by the
Commission to non-U.S. licensed space stations serving the United
States they do not incur the regulatory fees paid by operators of U.S.-
licensed space stations.
---------------------------------------------------------------------------
\1\ 47 CFR 1.1156.
\2\ See, e.g., Mitigation of Orbital Debris in the New Space
Age, IB Docket No. 18-313, Notice of Proposed Rulemaking and Order
on Reconsideration, 84 FR 4742 (Feb. 19, 2019), 33 FCC Rcd 11352
(2018); Amendment of Parts 2 and 25 of the Commission's Rules to
Facilitate the Use of Earth Stations in Motion Communicating with
Non-Geostationary Orbit Space Stations in Frequency Bands Allocated
to the Fixed-Satellite Service, IB Docket No. 18-315, Notice of
Proposed Rulemaking, 83 FR 67180 (Dec. 28, 2018), 33 FCC Rcd 11416
(2018); Amendment of the Commission's Policies and Rules for
Processing Applications in the Direct Broadcast Satellite Service,
IB Docket No. 06-160, Second Notice of Proposed Rulemaking, 84 FR
2126 (Feb. 6, 2019), 33 FCC Rcd 11303 (2018); Amendment of Parts 2
and 25 of the Commission's Rules to Facilitate the Use of Earth
Stations in Motion Communicating with Geostationary Orbit Space
Stations in Frequency Bands Allocated to the Fixed Satellite
Service, IB Docket No 17-95, Report and Order and Further Notice of
Proposed Rulemaking, 84 FR 53630 (Oct. 8, 2019) and 84 FR 5654 (Feb.
22, 2019), 32 FCC Rcd 9327 (2018); Further Streamlining Part 25
Rules Governing Satellite Services, IB Docket No. 18-314, Notice of
Proposed Rulemaking, 84 FR 638 (Jan. 31, 2019), 33 FCC Rcd 11502
(2018); Streamlining Licensing Procedures for Small Satellites, IB
Docket No. 18-86, Notice of Proposed Rulemaking, 83 FR 24064 (May
24, 2018), 33 FCC Rcd 4152 (2018); Update to Parts 2 and 25
Concerning Non-Geostationary, Fixed-Satellite Service Systems and
Related Matters, IB Docket No. 16-408, Report and Order and Further
Notice of Proposed Rulemaking, 82 FR 59972 (Dec. 18, 2017) and 82 FR
52869 (Nov. 15, 2017), 32 FCC Rcd 7809 (2017); Amendment of Parts 2
and 25 of the Commission's Rules to Facilitate the Use of Earth
Stations in Motion Communicating with Geostationary Orbit Space
Stations in Frequency Bands Allocated to the Fixed-Satellite
Service, IB Docket No. 17-95, Notice of Proposed Rulemaking, 82 FR
27652 (June 16, 2017), 32 FCC Rcd 4239 (2017).
\3\ Operators of non-U.S. licensed space stations have actively
participated in nearly all of the satellite rulemaking proceedings
over the course of the last several years. In addition, operators of
non-U.S. space stations participate in FCC proceedings through their
membership in the Satellite Industry Association, including roles as
executive members. See https://www.sia.org/join-sia/.
---------------------------------------------------------------------------
4. We seek comment on whether we should or must assess regulatory
fees on non-U.S. licensed space stations serving the United States
under section 9, given that non-U.S. licensed space stations appear to
benefit from the Commission's regulatory activities in much the same
manner as U.S. licensed space stations.\4\ The Commission has
previously declined to assess regulatory fees on non-U.S. licensed
space stations. In 1999, the Commission observed that the Act at the
time only authorized the Commission to assess space stations
``licensees,'' i.e., those licensed under Title III--which does not
include non-U.S.-licensed space stations.\5\ And the Commission sought
comment on assessing such fees in 2013 and 2014 but ultimately, did not
do so.\6\ We observe that the change made to section 9 by the RAY
BAUM'S Act requires the Commission to consider increases and decreases
in the ``number of units'' subject to payment of regulatory fees, but
does not state ``licensees.'' \7\ In this respect, the ``unit'' used
for assessing satellite space station regulatory fees is ``per
operational station in geostationary orbit'' or ``per operational
system in non-geostationary orbit.'' \8\ This broader language appears
equally applicable to U.S. licensed and non-U.S. licensed space
stations. We seek comment on whether we may or must assess such fees.
---------------------------------------------------------------------------
\4\ See EchoStar August 8 Ex Parte Letter, Attachment, at 1.
\5\ Assessment and Collection of Regulatory Fees for Fiscal Year
1999, Report and Order, 74 FR 400089 (Aug. 11, 2009), 14 FCC Rcd
9896, 9882, para. 39 (1999) (FY 1999 Report and Order).
\6\ Assessment and Collection of Regulatory Fees for Fiscal Year
2014, Notice of Proposed Rulemaking, Second Further Notice of
Proposed Rulemaking, and Order, 79 FR 37982 (July 3, 2014), 29 FCC
Rcd 6417, 6433-34, paras. 47-50 (2014) (FY 2014 NPRM); Assessment
and Collection of Regulatory Fees for Fiscal Year 2013, Notice of
Proposed Rulemaking and Further Notice of Proposed Rulemaking, 78 FR
34612 (June 10, 2013) and 79 FR 63883 (Oct. 27, 2014), 28 FCC Rcd
7790, 7809-810, paras. 47-49 (2013) (FY 2013 NPRM).
\7\ 47 U.S.C. 159(c)(1)(A).
\8\ See Appendix D: Assessment and Collection of Regulatory Fees
for Fiscal Year 2019, Notice of Proposed Rulemaking, 84 FR 26234
(June 5, 2019).
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5. We seek comment on whether assessing non-U.S. licensed space
stations would promote regulatory parity among space station operators.
Do any space station operators choose to seek licensing elsewhere as a
means of arbitraging our current regulatory fee assessments? Is it fair
or equitable to grant one class of space station operators a non-
statutory exemption from fees that another class of similarly situated
operators must pay? Commenters that advocate assessing regulatory fees
on non-U.S. licensed space stations providing service in the United
States should propose how the fees should be calculated and applied.
Are there any corner cases, such as where the non-U.S. licensed space
station operator accesses the U.S. market solely through one or more
U.S.-
[[Page 56736]]
licensed earth stations that identify a non-U.S. licensed space station
as a point of communication? If the regulatory fee per earth station
license is significantly less than the regulatory fee assessed per
space station, would such a discrepancy provide an incentive for space
station operators to see U.S. market access solely through earth
station licenses as a method of regulatory fee arbitrage? How should we
assess regulatory fees to avoid such arbitrage? Commenters should also
discuss any other policy implications that may arise from taking such
action, such as the likelihood that other countries will choose to
assess fees on U.S.-licensed space stations, and whether this policy
implication is still relevant in light of the number of U.S.-licensed
versus non-U.S. licensed space stations.\9\
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\9\ In 2014, the Commission observed that the majority of the
space station applications and notifications during the preceding
three-year period pertained to non-U.S.-licensed space stations. FY
2014 NPRM, 29 FCC Rcd at 6434, para. 50. In the period of 2014
through 2018, 48 approvals were given for geostationary space
stations and 14 were given for non-geostationary systems, according
to the International Bureau's electronic filing system, IBFS. Of
these, 23 of the 48 approvals were for non-U.S. licensed
geostationary space stations, and 7 of the 14 were for non-U.S.
licensed non-geostationary space station systems.
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6. We note that the Commission previously reallocated four
International Bureau FTEs as indirect for regulatory fee purposes to
address the work that International Bureau FTEs conduct on market
access requests by non-U.S. licensed space stations.\10\ The effect of
that decision was to require domestic broadcasters, wireless providers,
ITSPs, and others to pay for the regulatory work done on behalf of
foreign-licensed satellite operators. We seek comment on whether any
changes to our direct International Bureau FTE allocations would be
necessary if regulatory fees are adopted for non-U.S. licensed space
stations.
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\10\ FY 2015 Report and Order, 80 FR 55775 (Sept. 17, 2015), 30
FCC Rcd at 10278, para. 24.
---------------------------------------------------------------------------
7. Second, several commenters have argued that we should adjust the
apportionment among fee categories within the International Bureau. For
example, NASCA claims that the Commission has continued to over-recover
regulatory fees from submarine cable operators because the combined
submarine cable and IBC revenue requirement is relatively high compared
to the satellite and earth station categories.\11\ NASCA argues that
the other fee categories account for a much higher proportion of the
FTEs' activities in the International Bureau.\12\ And EchoStar asserts
that the Commission should examine the allocation of FTEs among
geostationary orbit (GSO) and non-geostationary orbit (NGSO) space and
earth station operators.\13\ We seek comment on whether the Commission
should reallocate FTEs within the International Bureau. If so, should
the Commission reassess the number of FTEs working on the issues of
various regulatees or reallocate fees based on relative capacity of
various services? Or should the Commission use some other metric to
engage in the reallocation? We also seek comment on whether the
Commission should change its current allocation of regulatory fees
between submarine cable and satellite and terrestrial IBCs based on a
plan developed by the IBC industry, with 87.6% of IBC fees paid by
submarine cable and 12.4% by satellite/terrestrial facilities.
Commenters should discuss whether certain apportionments within the
International Bureau could be more appropriately adjusted to better
reflect the amount of oversight and regulation for these industries.
---------------------------------------------------------------------------
\11\ NASCA Comments at 12; see also SEA-US May 1 Ex Parte Letter
at 2 (contending that the submarine cable operators pay a
disproportionate share of the regulatory fees allocated to
International Bureau regulatees compared to terrestrial and
satellite IBCs).
\12\ NASCA Reply Comments at 4.
\13\ EchoStar August 8 Ex Parte Letter, Attachment, at 1.
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B. Adjusting TV and Radio Broadcaster Regulatory Fees
8. We seek comment on two suggestions by commenters to further
adjust our assessment of broadcaster regulatory fees. First, we seek
comment on adjusting the regulatory fees paid by VHF broadcasters. The
VHF television band occupies frequencies between 54 and 216 MHz and in
general, VHF channels are numbered 2 to 13. Commenters on the FY 2019
NPRM argue that the predicted contour distance does not adequately
account for all of the possible effects on the VHF station signal, such
as terrain blockage, which may limit the signal, thereby reducing the
population number that is actually reached.\14\ Commenters contend that
the population count is therefore overstated for VHF stations and
should be adjusted downward accordingly.\15\ Should we adjust
population counts in our contour modeling to address such concerns, and
if so, how?
---------------------------------------------------------------------------
\14\ TZS Comments at 2; NAB Reply Comments at 8-9.
\15\ TZS Comments at 2; PMCM Comments at 2-3.
---------------------------------------------------------------------------
9. Second, we seek comment on whether we should adopt a lower
regulatory fee for full-service AM and FM broadcast radio station
incubator licensees. The Commission's broadcast incubator program is
intended to create ownership opportunities for new entrants that are
small businesses and promote competition and diversity in the radio
broadcast industry.\16\ MMTC asserts that regulatory fees may make it
more difficult for the incubator stations to thrive, and the Commission
should exempt them from regulatory fees for the term of the
license.\17\ Commenters should discuss an appropriate reduction from
the regulatory fee for broadcasters, such as 50%.
---------------------------------------------------------------------------
\16\ MMTC Comments at 1.
\17\ MMTC Comments at 2.
---------------------------------------------------------------------------
III. Procedural Matters
A. Ex Parte Information
10. This proceeding shall be treated as a ``permit-but-disclose''
proceeding in accordance with the Commission's ex parte rules.\18\
Persons making ex parte presentations must file a copy of any written
presentation or a memorandum summarizing any oral presentation within
two business days after the presentation (unless a different deadline
applicable to the Sunshine period applies). Persons making oral ex
parte presentations are reminded that memoranda summarizing the
presentation must (1) list all persons attending or otherwise
participating in the meeting at which the ex parte presentation was
made, and (2) summarize all data presented and arguments made during
the presentation. If the presentation consisted in whole or in part of
the presentation of data or arguments already reflected in the
presenter's written comments, memoranda, or other filings in the
proceeding, the presenter may provide citations to such data or
arguments in his or her prior comments, memoranda, or other filings
(specifying the relevant page and/or paragraph numbers where such data
or arguments can be found) in lieu of summarizing them in the
memorandum. Documents shown or given to Commission staff during ex
parte meetings are deemed to be written ex parte presentations and must
be filed consistent with Sec. 1.1206(b) of the Commission's rules. In
proceedings governed by Sec. 1.49(f) of the Commission's rules or for
which the Commission has made available a method of electronic filing,
written ex parte presentations and memoranda summarizing oral ex parte
presentations, and all attachments thereto, must be filed through the
electronic comment filing system available for that proceeding, and
must be filed in their native format (e.g., .doc,
[[Page 56737]]
.xml, .ppt, searchable .pdf). Participants in this proceeding should
familiarize themselves with the Commission's ex parte rules.
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\18\ 47 CFR 1.1200 through 1.1216.
---------------------------------------------------------------------------
B. Filing Instructions
11. Pursuant to Sec. Sec. 1.415 and 1.419 of the Commission's
rules, 47 CFR 1.415, 1.419, interested parties may file comments and
reply comments on or before the dates indicated on the first page of
this document. Comments may be filed using the Commission's Electronic
Comment Filing System (ECFS). See Electronic Filing of Documents in
Rulemaking Proceedings, 63 FR 24121 (1998).
Electronic Filers: Comments may be filed electronically
using the internet by accessing the ECFS: https://apps.fcc.gov/ecfs/.
Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing. If more than one docket
or rulemaking number appears in the caption of this proceeding, filers
must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail. All filings must be addressed to the Commission's Secretary,
Office of the Secretary, Federal Communications Commission.
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters at
445 12th St. SW, Room TW-A325, Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together
with rubber bands or fasteners. Any envelopes and boxes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to FCC, 9050 Junction
Drive, Annapolis Junction, MD 20701.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 445 12th Street SW, Washington, DC 20554.
12. People with Disabilities: To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to [email protected] or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
C. Initial Regulatory Flexibility Analysis
13. An initial regulatory flexibility analysis (IRFA) is contained
in this summary. Comments to the IRFA must be identified as responses
to the IRFA and filed by the deadlines for comments on the Notice of
Proposed Rulemaking (84 FR 26234 (June 5, 2019)). The Commission will
send a copy of the Notice of Proposed Rulemaking, including the IRFA,
to the Chief Counsel for Advocacy of the Small Business Administration.
D. Initial Paperwork Reduction Act of 1995 Analysis
14. 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).
IV. Initial Regulatory Flexibility Analysis
15. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\19\ the Commission prepared this Initial Regulatory
Flexibility Analysis (IRFA) of the possible significant economic impact
on small entities by the policies and rules proposed in the FNPRM.
Written comments are requested on this IRFA. Comments must be
identified as responses to the IRFA and must be filed by the deadline
for comments on this Further Notice. The Commission will send a copy of
the FNPRM, including the IRFA, to the Chief Counsel for Advocacy of the
Small Business Administration (SBA).\20\ In addition, the FNPRM and
IRFA (or summaries thereof) will be published in the Federal
Register.\21\
---------------------------------------------------------------------------
\19\ 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).
\20\ 5 U.S.C. 603(a).
\21\ Id.
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A. Need for, and Objectives of, the Further Notice
16. The FNPRM seeks comment on (i) adding a new fee category for
non-U.S. licensed satellite operators who have been granted access to
the U.S. market; (ii) adjusting the apportionment among fee categories
within the International Bureau; (iii) adjusting TV broadcaster
regulatory fees for VHF licenses; and (iv) adopting a lower regulatory
fee for broadcast incubator licensees. These issues may be further
addressed in the annual regulatory fee Notice of Proposed Rulemaking
for next year. The Commission is required by Congress to adopt
regulatory fees each year ``to recover the costs of carrying out the
activities described in section 6(a) only to the extent, and in the
total amounts, provided for in Appropriation Acts.'' \22\
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\22\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------
B. Legal Basis
17. This action, including publication of proposed rules, is
authorized under sections (4)(i) and (j), 9, 9A, and 303(r) of the
Communications Act of 1934, as amended.\23\
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\23\ 47 U.S.C. 154(i) and (j), 159, 159A, and 303(r).
---------------------------------------------------------------------------
C. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply
18. 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.\24\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \25\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\26\ A ``small business concern'' is one
which: (1) Is independently owned and operated; (2) is not dominant in
its field of operation; and (3) satisfies any additional criteria
established by the SBA.\27\
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\24\ 5 U.S.C. 603(b)(3).
\25\ 5 U.S.C. 601(6).
\26\ 5 U.S.C. 601(3) (adopting by reference the definition of
``small-business concern'' in the Small Business Act, 15 U.S.C.
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a
small business applies ``unless an agency, after consultation with
the Office of Advocacy of the Small Business Administration and
after opportunity for public comment, establishes one or more
definitions of such term which are appropriate to the activities of
the agency and publishes such definition(s) in the Federal
Register.''
\27\ 15 U.S.C. 632.
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19. Small Entities. Our actions, over time, may affect small
entities that are not easily categorized at present. We therefore
describe here, at the outset, three comprehensive small entity size
standards that could be directly affected by the proposals under
consideration.\28\ As of 2009, small businesses represented 99.9
percent of the 27.5 million businesses in the United States, according
to the SBA.\29\ In addition, a ``small organization is generally any
not-for-profit enterprise which is independently owned and operated and
[[Page 56738]]
not dominant in its field.\30\ In addition, the term ``small
governmental jurisdiction'' is defined generally as ``governments of
cities, towns, townships, villages, school districts, or special
districts, with a population of less than fifty thousand.'' \31\ U.S.
Census Bureau data for 2011 indicate that there were 90,056 local
governmental jurisdictions in the United States.\32\ We estimate that,
of this total, as many as 89,327 entities may qualify as ``small
governmental jurisdictions.'' \33\ Thus, we estimate that most local
government jurisdictions are small.
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\28\ See 5 U.S.C. 601(3)-(6).
\29\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
\30\ 5 U.S.C. 601(4).
\31\ 5 U.S.C. 601(5).
\32\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
\33\ The 2011 U.S. Census Data for small governmental
organizations are not presented based on the size of the population
in each organization. As stated above, there were 90,056 local
governmental organizations in 2011. As a basis for estimating how
many of these 90,056 local governmental organizations were small, we
note that there were a total of 729 cities and towns (incorporated
places and civil divisions) with populations over 50,000. See https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. If we
subtract the 729 cities and towns that exceed the 50,000 population
threshold, we conclude that approximately 789,237 are small.
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20. 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 and IPTV) 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.'' \34\ 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.\35\
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.\36\ Thus, under this size standard, the majority of firms in
this industry can be considered small.
---------------------------------------------------------------------------
\34\ See https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\35\ See 13 CFR 120.201, NAICS code 517110.
\36\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5 &prodType= table .
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21. Local Exchange Carriers (LECs). Neither the Commission nor the
SBA has developed a size standard for small businesses specifically
applicable to local exchange services. The closest applicable NAICS
code category is for Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer
employees.\37\ According to census data from 2012, there were 3,117
establishments that operated that year. Of this total, 3,083 operated
with fewer than 1,000 employees.\38\ The Commission estimates that most
providers of local exchange service are small entities that may be
affected by the rules proposed in the Further Notice.
---------------------------------------------------------------------------
\37\ 13 CFR 121.201, 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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22. Incumbent LECs. Neither the Commission nor the SBA has
developed a small business size standard specifically for incumbent
local exchange services. The closest applicable NAICS code category is
Wired Telecommunications Carriers. Under that size standard, such a
business is small if it has 1,500 or fewer employees.\39\ According to
census data from 2012, 3,117 firms operated in that year. Of this
total, 3,083 operated with fewer than 1,000 employees.\40\ According to
Commission data, 1,307 carriers reported that they were incumbent local
exchange service providers.\41\ Of this total of 1,307 incumbent local
exchange service providers, an estimated 1,006 operated with 1,500 or
fewer employees.\42\ Consequently, the Commission estimates that most
providers of incumbent local exchange service are small businesses that
may be affected by the rules proposed in this Further Notice.
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\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\ 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).
\42\ See id.
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23. Competitive Local Exchange Carriers (Competitive LECs),
Competitive Access Providers (CAPs), Shared-Tenant Service Providers,
and Other Local Service Providers. Neither the Commission nor the SBA
has developed a small business size standard specifically for these
service providers. The appropriate NAICS code category is Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or fewer employees.\43\ 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.\44\ Based on
this data, the Commission concludes that the majority of Competitive
LECs, CAPs, Shared-Tenant Service Providers, and Other Local Service
Providers are small entities. According to the Commission data, 1,442
carriers reported that they were engaged in the provision of either
competitive local exchange services or competitive access provider
services.\45\ Of these 1,442 carriers, an estimated 1,256 have 1,500 or
fewer employees. In addition, 17 carriers have reported that they are
Shared-Tenant Service Providers, and all 17 are estimated to have 1,500
or fewer employees.\46\ Also, 72 carriers have reported that they are
Other Local Service Providers.\47\ Of this total, 70 have 1,500 or
fewer employees.\48\ Consequently, the Commission estimates that most
providers of competitive local exchange service, competitive access
providers, Shared-Tenant Service Providers, and Other Local Service
Providers are small entities that may be affected by rules proposed in
this Further Notice.
---------------------------------------------------------------------------
\43\ 13 CFR 121.201, NAICS code 517110.
\44\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\45\ See Trends in Telephone Service, at Table 5.3.
\46\ Id.
\47\ Id.
\48\ Id.
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24. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA has developed a definition for Interexchange Carriers. The closest
NAICS code category is Wired Telecommunications Carriers as defined in
paragraph 6 of this IRFA. The applicable size standard under SBA rules
is that such a business is small if it has 1,500 or fewer
employees.\49\ 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.\50\ According to Commission data, 359 companies
reported that their primary
[[Page 56739]]
telecommunications service activity was the provision of interexchange
services.\51\ Of this total, an estimated 317 have 1,500 or fewer
employees. Consequently, the Commission estimates that the majority of
interexchange service providers are small entities that may be affected
by rules proposed in this Further Notice.
---------------------------------------------------------------------------
\49\ 13 CFR 121.201, NAICS code 517110.
\50\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\51\ See Trends in Telephone Service, at Table 5.3.
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25. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business size standard specifically for
prepaid calling card providers. The appropriate NAICS code category for
prepaid calling card providers is Telecommunications Resellers. This
industry comprises establishments engaged in purchasing access and
network capacity from owners and operators of telecommunications
networks and reselling wired and wireless telecommunications services
(except satellite) to businesses and households. Establishments in this
industry resell telecommunications; they do not operate transmission
facilities and infrastructure. Mobile virtual networks operators
(MVNOs) are included in this industry.\52\ Under the applicable SBA
size standard, such a business is small if it has 1,500 or fewer
employees.\53\ 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.\54\ 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.\55\ All 193 carriers have 1,500
or fewer employees.\56\ Consequently, the Commission estimates that the
majority of prepaid calling card providers are small entities that may
be affected by rules proposed in this Further Notice.
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\52\ https://www.census.gov/cgi-bin/ssd/naics/naicsrch.
\53\ 13 CFR 121.201, NAICS code 517911.
\54\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\55\ See Trends in Telephone Service, at Table 5.3.
\56\ Id.
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26. 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.\57\ Census
data for 2012 show that 1,341 firms provided resale services during
that year.\58\ Of that number, 1,341 operated with fewer than 1,000
employees.\59\ 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.\60\ Of this total, an estimated 211 have 1,500 or fewer
employees.\61\ Consequently, the Commission estimates that the majority
of local resellers are small entities that may be affected by rules
proposed in this Further Notice.
---------------------------------------------------------------------------
\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\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\60\ See Trends in Telephone Service, at Table 5.3.
\61\ Id.
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27. 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.\62\ Under that size standard, such a business is small if it
has 1,500 or fewer employees.\63\ Census data for 2012 show that 1,341
firms provided resale services during that year.\64\ Of that number,
1,341 operated with fewer than 1,000 employees.\65\ 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.\66\ Of this total, an estimated
857 have 1,500 or fewer employees.\67\ Consequently, the Commission
estimates that the majority of toll resellers are small entities that
may be affected by the rules proposed in the Further Notice.
---------------------------------------------------------------------------
\62\ 13 CFR 121.201, NAICS code 517911.
\63\ Id.
\64\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\65\ Id.
\66\ Trends in Telephone Service, at Table. 5.3.
\67\ Id.
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28. Other Toll Carriers. Neither the Commission nor the SBA has
developed a size standard for small businesses specifically applicable
to Other Toll Carriers. This category includes toll carriers that do
not fall within the categories of interexchange carriers, operator
service providers, prepaid calling card providers, satellite service
carriers, or toll resellers. The closest applicable NAICS code category
is for Wired Telecommunications Carriers, as defined in paragraph 6 of
this IRFA. Under that size standard, such a business is small if it has
1,500 or fewer employees.\68\ Census data for 2012 shows that there
were 3,117 firms that operated that year.\69\ Of this total, 3,083
operated with fewer than 1,000 employees.\70\ Thus, under this category
and the associated small business size standard, the majority of Other
Toll Carriers can be considered small. According to Commission data,
284 companies reported that their primary telecommunications service
activity was the provision of other toll carriage.\71\ Of these, an
estimated 279 have 1,500 or fewer employees.\72\ Consequently, the
Commission estimates that most Other Toll Carriers are small entities
that may be affected by the rules proposed in the Further Notice.
---------------------------------------------------------------------------
\68\ 13 CFR 121.201, NAICS code 517110.
\69\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\70\ Id.
\71\ Trends in Telephone Service, at Table 5.3.
\72\ Id.
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29. 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.\73\
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.\74\ Of this total, 955 firms had fewer than 1,000
employees.\75\ Thus under this category and the associated size
standard, the Commission estimates that the majority of wireless
telecommunications carriers (except satellite) are small entities.
Similarly, according to Commission data, 413
[[Page 56740]]
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.\76\ Of this total,
an estimated 261 have 1,500 or fewer employees.\77\ Thus, using
available data, we estimate that the majority of wireless firms can be
considered small and may be affected by rules proposed in this Further
Notice.
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\73\ NAICS code 517210. See https://www.census.gov/cgi-bin/ssd/
naics/naiscsrch.
\74\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\75\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\76\ Trends in Telephone Service, at Table 5.3.
\77\ Id.
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30. 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.'' \78\ These establishments
also produce or transmit visual programming to affiliated broadcast
television stations, which in turn broadcast the programs to the public
on a predetermined schedule.
Programming may originate in their own studio, from an affiliated
network, or from external sources. The SBA has created the following
small business size standard for Television Broadcasting firms: Those
having $38.5 million or less in annual receipts.\79\ The 2012 Economic
Census reports that 751 television broadcasting firms operated during
that year. Of that number, 656 had annual receipts of less than $25
million per year. Based on that Census data we conclude that a majority
of firms that operate television stations are small. The Commission has
estimated the number of licensed commercial television stations to be
1,387.\80\ 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.\81\ We therefore estimate that the majority of commercial
television broadcasters are small entities.
---------------------------------------------------------------------------
\78\ U.S. Census Bureau, 2012 NAICS code Economic Definitions,
https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\79\ 13 CFR 121.201, NAICS code 515120.
\80\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
\81\ We recognize that BIA's estimate differs slightly from the
FCC total given supra.
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31. In assessing whether a business concern qualifies as small
under the above definition, business (control) affiliations \82\ 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.
---------------------------------------------------------------------------
\82\ ``[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).
---------------------------------------------------------------------------
32. In addition, the Commission has estimated the number of
licensed noncommercial educational (NCE) television stations to be
396.\83\ These stations are non-profit, and therefore considered to be
small entities.\84\ There are also 2,528 low power television stations,
including Class A stations (LPTV).\85\ 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.
---------------------------------------------------------------------------
\83\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
\84\ See generally 5 U.S.C. 601(4), (6). Noncommercial
television stations are not required to pay regulatory fees. 47
U.S.C. 159(e)(1)(C).
\85\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; https://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
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33. Radio Broadcasting. This Economic Census category ``comprises
establishments primarily engaged in broadcasting programs by radio to
the public. Programming may originate in their own studio, from an
affiliated network, or from external sources.'' \86\ 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.\87\ U.S.
Census data for 2012 show that 2,849 radio station firms operated
during that year.\88\ Of that number, 2,806 operated with annual
receipts of less than $25 million per year.\89\ According to Commission
staff review of BIA Advisory Services, LLC's Media Access Pro Radio
Database on March 28, 2012, about 10,759 (97 percent) of 11,102
commercial radio stations had revenues of $38.5 million or less.
Therefore, the majority of such entities are small entities.
---------------------------------------------------------------------------
\86\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\87\ 13 CFR 121.201, NAICS code 515112.
\88\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\89\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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34. In assessing whether a business concern qualifies as small
under the above size standard, business affiliations must be
included.\90\ In addition, to be determined to be a ``small business,''
the entity may not be dominant in its field of operation.\91\ 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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\90\ ``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).
\91\ 13 CFR 121.102(b) (an SBA regulation).
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35. 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.\92\ 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.\93\ Of this total, 319 operated with
annual receipts of less than $25 million.\94\ Thus under this size
standard, the majority of firms offering cable and other program
distribution services can be considered small and may be affected by
rules proposed in this Further Notice.
---------------------------------------------------------------------------
\92\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
\93\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
\94\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=Table">https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=Table.
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36. 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.\95\
[[Page 56741]]
Industry data indicate that there are currently 4,600 active cable
systems in the United States.\96\ Of this total, all but ten cable
operators nationwide are small under the 400,000-subscriber size
standard.\97\ In addition, under the Commission's rate regulation
rules, a ``small system'' is a cable system serving 15,000 or fewer
subscribers.\98\ Current Commission records show 4,600 cable systems
nationwide.\99\ Of this total, 3,900 cable systems have less than
15,000 subscribers, and 700 systems have 15,000 or more subscribers,
based on the same records.\100\ Thus, under this standard as well, the
Commission estimates that most cable systems are small entities.
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\95\ 47 CFR 76.901(e).
\96\ August 15, 2015 Report from the Media Bureau based on data
contained in the Commission's Cable Operations and Licensing System
(COALS). See www/fcc.gov/coals.
\97\ See SNL KAGAN at www.snl.com/interactiveX/topcableMSOs
aspx?period2015Q1&sortcol=subscribersbasic&sortorder=desc.
\98\ 47 CFR 76.901(c).
\99\ See footnote 2, supra.
\100\ August 5, 2015 report from the Media Bureau based on its
research in COALS. See www.fcc.gov/coals.
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37. 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.'' \101\ There are approximately 52,403,705 cable video
subscribers in the United States today.\102\ 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.\103\
Based on available data, we find that all but nine incumbent cable
operators are small entities under this size standard.\104\ The
Commission neither requests nor collects information on whether cable
system operators are affiliated with entities whose gross annual
revenues exceed $250 million.\105\ Although it seems certain that some
of these cable system operators are affiliated with entities whose
gross annual revenues exceed $250,000,000, we are unable at this time
to estimate with greater precision the number of cable system operators
that would qualify as small cable operators under the definition in the
Communications Act.
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\101\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\102\ See SNL KAGAN at www.snl.com/interactivex/MultichannelIndustryBenchmarks.aspx.
\103\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\104\ See SNL KAGAN at www.snl.com/Interactivex/TopCable
MSOs.aspx.
\105\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's
finding that the operator does not qualify as a small cable operator
pursuant to 47 CFR 76.901(f) of the Commission's rules. See 47 CFR
76.901(f).
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38. 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.\106\ The SBA determines that a wireline business is
small if it has fewer than 1500 employees.\107\ 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.\108\ Based on that data, we conclude that the majority of
wireline firms are small under the applicable standard. However,
currently only two entities provide DBS service, which requires a great
deal of capital for operation: AT&T and DISH Network.\109\ AT&T and
DISH Network each report annual revenues that are in excess of the
threshold for a small business. Accordingly, we must conclude that DBS
service is provided only by large firms.
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\106\ https://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\107\ NAICs code 517110; 13 CFR 121.201.
\108\ https://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
\109\ See 15th Annual Video Competition Report, 28 FCC Rcd at
1057, Section 27.
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39. 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.\110\ 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.\111\ 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.\112\ Thus, a majority of ``All Other
Telecommunications'' firms potentially affected by the proposals in the
Further Notice can be considered small.
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\110\ https://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
\111\ 13 CFR 121.201; NAICs code 517919.
\112\ https://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
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40. RespOrgs. Responsible Organizations, or RespOrgs, are entities
chosen by toll free subscribers to manage and administer the
appropriate records in the toll free Service Management System for the
toll free subscriber.\113\ 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.
---------------------------------------------------------------------------
\113\ See 47 CFR 52.101(b).
---------------------------------------------------------------------------
41. 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,\114\ and Wireless Telecommunications Carriers (except
satellite).\115\
---------------------------------------------------------------------------
\114\ 13 CFR 121.201, NAICS code 517110.
\115\ Id.
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[[Page 56742]]
42. 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.\116\ 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.\117\ 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.\118\ Based
on that data, we conclude that the majority of Carrier RespOrgs that
operated with wireline-based technology are small.
---------------------------------------------------------------------------
\116\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\117\ 13 CFR 120,201, NAICS code 517110.
\118\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
43. The U.S. Census Bureau defines Wireless Telecommunications
Carriers (except satellite) as establishments engaged in operating and
maintaining switching and transmission facilities to provide
communications via the airwaves, such as cellular services, paging
services, wireless internet access, and wireless video services.\119\
The appropriate size standard under SBA rules is that such a business
is small if it has 1,500 or fewer employees.\120\ 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.\121\
Based on that data, we conclude that the majority of Carrier RespOrgs
that operated with wireless-based technology are small.
---------------------------------------------------------------------------
\119\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\120\ 13 CFR 120.201, NAICS code 517120.
\121\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
44. Non-Carrier RespOrgs. Neither the Commission, the U.S. Census,
nor the SBA have developed a definition of Non-Carrier RespOrgs.
Accordingly, the Commission believes that the closest NAICS code-based
definitional categories for Non-Carrier RespOrgs are ``Other Services
Related to Advertising'' \122\ and ``Other Management Consulting
Services.'' \123\
---------------------------------------------------------------------------
\122\ 13 CFR 120.201, NAICS code 541890.
\123\ 13 CFR 120.201, NAICS code 541618.
---------------------------------------------------------------------------
45. 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).\124\ The SBA has established a size standard for this
industry as annual receipts of $15 million dollars or less.\125\ Census
data for 2012 show that 5,804 firms operated in this industry for the
entire year. Of that number, 5,612 operated with annual receipts of
less than $10 million.\126\ Based on that data we conclude that the
majority of Non-Carrier RespOrgs who provide toll-free number (TFN)-
related advertising services are small.
---------------------------------------------------------------------------
\124\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\125\ 13 CFR 120.201, NAICS code 541890.
\126\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------
46. 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.\127\ The SBA has established a size standard
for this industry of $15 million dollars or less.\128\ 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.\129\ Based on this data, we conclude that a majority
of non-carrier RespOrgs who provide TFN-related management consulting
services are small.\130\
---------------------------------------------------------------------------
\127\ https://www.census,gov/cgi-bin/sssd/naics.naicsrch.
\128\ 13 CFR 120.201, NAICS code 514618.
\129\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
\130\ 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.
---------------------------------------------------------------------------
47. In addition to the data contained in the four (see above) U.S.
Census NAICS code categories that provide definitions of what services
and functions the Carrier and Non-Carrier RespOrgs provide, Somos, the
trade association that monitors RespOrg activities, compiled data
showing that as of July 1, 2016 there were 23 RespOrgs operational in
Canada and 436 RespOrgs operational in the United States, for a total
of 459 RespOrgs currently registered with Somos.
D. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
48. This Further Notice does not propose any changes to the
Commission's current information collection, reporting, recordkeeping,
or compliance requirements.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
49. 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.\131\
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\131\ 5 U.S.C. 603(c)(1)-(c)(4).
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50. This FNPRM seeks comment on issues that the Commission may
address in the regulatory fee collection for Fiscal Year 2020.
Specifically, the FNPRM seeks comment on (i) adding a new fee category
for non-U.S. licensed satellite operators who have been granted access
to the U.S. market; (ii) adjusting the apportionment among fee
categories within the International Bureau; (iii) adjusting TV
broadcaster regulatory fees for VHF licenses; and (iv) adopting a lower
regulatory fee for broadcast incubator licensees. Some of these
[[Page 56743]]
issues may affect small entities. For example, revising intra-bureau
allocations in the International Bureau could result in changes of
regulatory fees for small entities, if this is adopted. Adjusting
regulatory fees for TV broadcasters that hold VHF broadcast licenses
could affect small entities, and ultimately provide them a benefit in
the form of lower regulatory fees, if the Commission adjusts VHF fees
in the future. Incubator licensees will likely be small entities and
adopting a lower regulatory fee for them would benefit small entities.
These issues in the FNPRM may be addressed in the FY 2020 annual
regulatory fee notice of proposed rulemaking.
F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
51. None.
V. Ordering Clauses
52. 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 Further Notice of Proposed
Rulemaking is hereby adopted.
Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2019-22914 Filed 10-22-19; 8:45 am]
BILLING CODE 6712-01-P
