Federal Register, Volume 76 Issue 154 (Wednesday, August 10, 2011)

[Federal Register Volume 76, Number 154 (Wednesday, August 10, 2011)]
[Rules and Regulations]
[Pages 49333-49364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-19836]

=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 11-76; FCC 11-114]

Assessment and Collection of Regulatory Fees for Fiscal Year 2011

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Commission revises its Schedule of Regulatory Fees to
recover an amount of $335,794,000 that Congress has required the
Commission to collect for fiscal year 2011. The Communications Act of
1934, as amended, provides for the annual assessment and collection of
regulatory fees for annual ``Mandatory Adjustments'' and ``Permitted
Amendments'' to the Schedule of Regulatory Fees.

DATES: Effective September 9, 2011.

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

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order (R&O), FCC 11-114, MD Docket No. 11-76, adopted on July 21,
2011 and released on July 22, 2011.

I. Procedural Matters

A. Final Paperwork Reduction Act

1. This Report and Order 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).

B. Congressional Review Act Analysis

2. The Commission will send a copy of this Report and Order to
Congress and the Government Accountability Office pursuant to the
Congressional Review Act.\1\
---------------------------------------------------------------------------

\1\ See 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is
contained in Title II, 251, of the CWAAA; see Pub. L. No. 104-121,
Title II, 251, 110 Stat. 868.
---------------------------------------------------------------------------

C. Final Regulatory Flexibility Analysis

3. As required by the Regulatory Flexibility Act of 1980
(``RFA''),\2\ the Commission has prepared a Final Regulatory
Flexibility Analysis (``FRFA'') relating to this Report and Order. The
FRFA is set forth in the section entitled Final Regulatory Flexibility
Analysis.
---------------------------------------------------------------------------

\2\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (``SBREFA''), Pub. L. No. 104-121, Title II, 110 Stat. 847
(1996). The SBREFA was enacted as Title II of the Contract With
America Advancement Act of 1996 (``CWAAA'').
---------------------------------------------------------------------------

II. Report and Order

Introduction

4. In this Report and Order, we conclude the Assessment and
Collection of Regulatory Fees for Fiscal Year (``FY'') 2011 proceeding
to collect $335,794,000 in regulatory fees for Fiscal Year (``FY'')
2011, pursuant to section 9 of the Communications Act of 1934, as
amended (the ``Act''). Section 9 regulatory fees are mandated by
Congress and are collected to recover the regulatory costs associated
with the Commission's enforcement, policy and rulemaking, user
information, and international activities.\3\ The annual regulatory fee
amount to be collected is established each year in the Commission's
Annual Appropriations Act which is adopted by Congress and signed by
the President and which funds the Commission.\4\ In this annual
regulatory fee proceeding, we retain many of the established methods,
policies, and procedures for collecting section 9 regulatory fees
adopted by the Commission in prior years. Consistent with our
established practice, we intend to collect these regulatory fees during
a September 2011 filing window in order to collect the required amount
by the end of our fiscal year. Finally, we will initiate a further
rulemaking that will update the record on regulatory fee rebalancing,
as well as expand this inquiry to include new issues and services, by
the end of this calendar year.
---------------------------------------------------------------------------

\3\ 47 U.S.C. 159(a).
\4\ See The Full-Year Continuing Appropriations Act, 2011,
Public Law 112-10, for the appropriations act language specifying
that the applicable level of funding for fiscal year 2011 continues
to be the amount provided by the Consolidated Appropriations Act,
2010, Public Law 111-117, for agencies previously funded by that
Act. The level set by Congress in the Consolidated Appropriations
Act, 2010 for the Commission was $335,794,000 of offsetting
collections to be assessed and collected by the Commission pursuant
to Section 9 of the Communications Act.
---------------------------------------------------------------------------

III. Discussion

5. On May 3, 2011, we released a Notice of Proposed Rulemaking
(``FY 2011 NPRM'') seeking comment on regulatory fee issues for FY
2011.\5\ The section 9 regulatory fee proceeding is an annual
rulemaking process for the Commission to collect the required fee
amount each year. In the FY 2011 NPRM, we proposed to retain the
section 9 regulatory fee methodology used in prior fiscal years, except
as discussed below. We received six comments and one reply comment.\6\
We address the issues raised in our FY 2011 NPRM and these comments
below.
---------------------------------------------------------------------------

\5\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2011, Notice of Proposed Rulemaking, 76 FR 30605 (May 26, 2011)
(``FY 2011 NPRM'').
\6\ See table of commenters and reply commenters.

Table--List of Commenters
------------------------------------------------------------------------
Commenter Abbreviated name
------------------------------------------------------------------------
American Association of Paging Carriers ``AAPC''
Raymond Awe............................ ``Raymond Awe''
CTIA--The Wireless Association......... ``CTIA''
PCIA--The Wireless Infrastructure ``PCIA''
Association.
The United States Telecom Association.. ``USTelecom''
Verizon Wireless....................... ``Verizon''
------------------------------------------------------------------------

Table--List of Reply Commenters
------------------------------------------------------------------------
Commenter Abbreviated name
------------------------------------------------------------------------
AT&T Inc............................... ``AT&T''
------------------------------------------------------------------------

A. FY 2011 Regulatory Fee Assessment Methodology

6. In our FY 2011 regulatory fee assessment, we will use the same
section 9 regulatory fee assessment methodology adopted in FY 2010 and
in prior years. Each fiscal year, the Commission proportionally
allocates the total amount that must be collected via section 9
regulatory fees. The results of our FY 2011 regulatory fee assessment
methodology (including a comparison to the prior year's results) are
contained in the table below (Table--Calculation of FY 2011 Revenue
Requirements and Pro-Rata Fees). To collect the $335,794,000 required
by Congress, we allocated this amount across the various fee
categories. Consistent with past practice, we then divided the various
fee categories by their respective number of estimated payment units to

[[Page 49334]]

determine the unit fee.\7\ As in prior years, for cases involving small
fees, e.g., licenses that are renewed over a multiyear term, we divided
the resulting unit fee by the term of the license and then rounded
these unit fees consistent with the requirements of section 9(b)(2) of
the Act.
---------------------------------------------------------------------------

\7\ In many instances, the regulatory fee amount is a flat fee
per licensee or regulatee. In some instances, the fee amount
represents a per-unit fee (such as for International Bearer
Circuits), a per-unit subscriber fee (such as for Cable, Commercial
Mobile Radio Service (``CMRS'') Cellular/Mobile and CMRS Messaging),
or a fee factor per revenue dollar (Interstate Telecommunications
Service Provider (``ITSP'') fee). The payment unit is the measure
upon which the fee is based, such as a licensee, regulatee, or
subscriber fee.

Table--Calculation of FY 2011 Revenue Requirements and Pro-Rata Fees
[Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the term of the license and are submitted along
with the application at the time the application is filed.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Computed Rounded
FY 2010 Pro-rated new FY new FY Expected FY
Fee category FY 2011 payment Years revenue FY 2011 2011 2011 2011
units estimate revenue regulatory regulatory revenue
requirement fee fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use).................................... 1,200 10 480,000 495,845 41 40 480,000
LMRS (Shared use)........................................ 10,600 10 2,300,000 2,375,921 22 20 2,120,000
Microwave................................................ 10,200 10 2,375,000 2,324,270 23 25 2,550,000
218-219 MHz (Formerly IVDS).............................. 3 10 1,950 2,015 67 65 1,950
Marine (Ship)............................................ 6,700 10 800,000 774,757 12 10 670,000
GMRS..................................................... 9,300 5 242,500 284,078 6 5 232,500
Aviation (Aircraft)...................................... 4,600 10 230,000 361,553 8 10 460,000
Marine (Coast)........................................... 265 10 119,250 127,835 48 50 132,500
Aviation (Ground)........................................ 1,100 10 150,000 154,952 14 15 165,000
Amateur Vanity Call Signs................................ 14,600 10 196,840 207,635 1.42 1.42 207,320
AM Class A \4a\.......................................... 66 1 253,300 256,832 3,891 3,900 257,400
AM Class B \4b\.......................................... 1,439 1 3,053,700 3,075,578 2,137 2,125 3,057,875
AM Class C \4c\.......................................... 918 1 1,078,650 1,090,083 1,187 1,175 1,078,650
AM Class D \4d\.......................................... 1,637 1 3,589,125 3,631,802 2,219 2,225 3,642,325
FM Classes A, B1 & C3 \4e\............................... 3,114 1 7,372,000 7,652,108 2,457 2,450 7,629,300
FM Classes B, C, C0, C1 & C2 \4f\........................ 3,111 1 9,308,775 9,400,580 3,022 3,025 9,410,775
AM Construction Permits.................................. 90 1 43,680 44,212 491 490 44,100
FM Construction Permits.................................. 151 1 105,300 101,925 675 675 101,925
Satellite TV............................................. 133 1 163,800 167,270 1,258 1,250 166,250
Satellite TV Construction Permit......................... 3 1 2,025 2,015 672 670 2,010
VHF Markets 1-10......................................... 20 1 1,631,000 1,692,381 84,619 84,625 1,692,500
VHF Markets 11-25........................................ 26 1 1,708,425 1,772,526 68,174 68,175 1,772,550
VHF Markets 26-50........................................ 36 1 1,404,150 1,457,127 40,476 40,475 1,457,100
VHF Markets 51-100....................................... 52 1 1,140,000 1,182,936 22,749 22,750 1,183,000
VHF Remaining Markets.................................... 127 1 747,250 774,447 6,098 6,100 774,700
VHF Construction Permits \1\............................. 2 1 18,375 12,200 6,100 6,100 12,200
UHF Markets 1-10......................................... 113 1 3,776,175 3,915,430 34,650 34,650 3,915,450
UHF Markets 11-25........................................ 107 1 3,398,475 3,524,319 32,938 32,950 3,525,650
UHF Markets 26-50........................................ 144 1 2,910,600 3,016,311 20,947 20,950 3,016,800
UHF Markets 51-100....................................... 238 1 2,829,750 2,932,290 12,321 12,325 2,933,350
UHF Remaining Markets.................................... 264 1 835,700 866,787 3,283 3,275 864,600
UHF Construction Permits \1\............................. 10 1 36,600 32,750 3,275 3,275 32,750
Broadcast Auxiliaries.................................... 26,850 1 275,000 284,078 11 10 268,500
LPTV/Translators/Boosters/Class ATV...................... 3,607 1 1,411,000 1,425,553 395 395 1,424,765
CARS Stations............................................ 470 1 173,250 174,578 371 370 173,900
Cable TV Systems......................................... 63,400,000 1 57,405,000 58,633,597 0.92482 0.93 58,962,000
Interstate Telecommunication Service Providers........... $39,500,000,000 1 151,117,000 148,100,156 0.0037494 0.00375 148,125,000
CMRS Mobile Services (Cellular/Public Mobile)............ 298,000,000 1 50,940,000 51,562,378 0.1730 0.17 50,660,000
CMRS Messag. Services.................................... 4,200,000 1 480,000 376,000 0.0800 0.080 336,000
BRS \2\.................................................. 1,690 1 514,600 523,900 310 310 523,900
LMDS..................................................... 520 1 158,100 161,200 310 310 161,200
Per 64 kbps Int'l Bearer Circuits Terrestrial (Common) & 3,247,195 1 1,130,233 1,143,849 .352 .35 1,136,518
Satellite (Common & Non-Common).........................
Submarine Cable Providers (see chart in Appendix C) \3\.. 39.375 1 7,983,860 8,080,736 205,225 205,225 8,080,734
Earth Stations........................................... 3,575 1 864,000 878,575 246 245 875,875
Space Stations (Geostationary)........................... 87 1 11,129,475 11,429,445 131,373 131,375 11,429,625
Space Stations (Non-Geostationary)....................... 6 1 828,300 850,528 141,755 141,750 850,500
----------------------------------------------------------------------------------------------
Total Estimated Revenue to be Collected.............. ................. ...... 336,712,213 337,295,342 ........... ........... 336,599,048
----------------------------------------------------------------------------------------------
Total Revenue Requirement............................ ................. ...... 335,794,000 335,794,000 ........... ........... 335,794,000
----------------------------------------------------------------------------------------------

[[Page 49335]]

Difference........................................... ................. ...... 918,213 1,501,342 ........... ........... 805,048
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The FM Construction Permit revenues and the VHF and UHF Construction Permit revenues were adjusted to set the regulatory fee to an amount no higher
than the lowest licensed fee for that class of service. The reductions in the FM Construction Permit revenues are offset by increases in the revenue
totals for FM radio stations. Similarly, reductions in the VHF and UHF Construction Permit revenues are offset by increases in the revenue totals for
VHF and UHF television stations, respectively.
\2\ MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate
the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands, Report & Order
and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, para. 6 (2004).
\3\ The chart at the end of Table--FY 2011 Schedule of Regulatory Fees lists the submarine cable bearer circuit regulatory fees (common and non-common
carrier basis) that resulted from the adoption of the following proceedings: Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second
Report and Order (MD Docket No. 08-65, RM-11312), released March 24, 2009; and Assessment and Collection of Regulatory Fees for Fiscal Year 2009 and
Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Notice of Proposed Rulemaking and Order (MD Docket No. 09-65, MD Docket No. 08-65),
released on May 14, 2009.
\4\ The fee amounts listed in the column entitled ``Rounded New FY 2011 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
service. The actual FY 2011 regulatory fees for AM/FM radio station are listed on a grid located in Table--FY 2011 Schedule of Regulatory Fees.

7. In calculating the FY 2011 regulatory fees listed in Table--FY
2011 Schedule of Regulatory Fees (see table below), we adjusted the FY
2011 list of payment units (see Table--Sources of Payment Unit
Estimates for FY 2011 below) based upon licensee databases, industry
and trade group projections, as well as prior year payment information.
In some instances, Commission licensee databases are used; in other
instances, actual prior year payment records and/or industry and trade
association projections are used in determining the payment units.\8\
Where appropriate, we adjusted and rounded our final estimates to take
into consideration events that may impact the number of units for which
regulatees submit payment, such as waivers and exemptions that may be
filed in FY 2011, and fluctuations in the number of licenses or station
operators due to economic, technical, or other reasons. Our estimated
FY 2011 payment units, therefore, are based on several variable factors
that are relevant to each fee category. The fee rate may also be
rounded or adjusted slightly to account for these variables.
---------------------------------------------------------------------------

\8\ The databases we consulted are the following: The
Commission's Universal Licensing System (``ULS''), International
Bureau Filing System (``IBFS''), Consolidated Database System
(``CDBS'') and Cable Operations and Licensing System (``COALS''). We
also consulted reports generated within the Commission such as the
Wireline Competition Bureau's Trends in Telephone Service and the
Wireless Telecommunications Bureau's Numbering Resource Utilization
Forecast and Annual CMRS Competition Report, as well as industry
sources including, but not limited to, Television & Cable Factbook
by Warren Publishing, Inc. and the Broadcasting and Cable Yearbook
by Reed Elsevier, Inc.

Table--FY 2011 Schedule of Regulatory Fees
[Regulatory fees for the categories shaded in gray are collected by the
Commission in advance to cover the term of the license and are submitted
along with the application at the time the application is filed.]
------------------------------------------------------------------------
Annual
Fee category regulatory fee
(U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).. 40
Microwave (per license) (47 CFR part 101)............. 25
218-219 MHz (Formerly Interactive Video Data Service) 65
(per license) (47 CFR part 95).......................
Marine (Ship) (per station) (47 CFR part 80).......... 10
Marine (Coast) (per license) (47 CFR part 80)......... 50
General Mobile Radio Service (per license) (47 CFR 5
part 95).............................................
Rural Radio (47 CFR part 22) (previously listed under 20
the Land Mobile category)............................
PLMRS (Shared Use) (per license) (47 CFR part 90)..... 20
Aviation (Aircraft) (per station) (47 CFR part 87).... 10
Aviation (Ground) (per license) (47 CFR part 87)...... 15
Amateur Vanity Call Signs (per call sign) (47 CFR part 1.42
97)..................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts .17
20, 22, 24, 27, 80 and 90)...........................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90).......................................
Broadband Radio Service (formerly MMDS/MDS) (per 310
license) (47 CFR part 21)............................
Local Multipoint Distribution Service (per call sign) 310
(47 CFR, part 101)...................................
AM Radio Construction Permits......................... 490
FM Radio Construction Permits......................... 675
TV (47 CFR part 73) VHF Commercial:
Markets 1-10...................................... 84,625
Markets 11-25..................................... 68,175
Markets 26-50..................................... 40,475
Markets 51-100.................................... 22,750
Remaining Markets................................. 6,100

[[Page 49336]]

Construction Permits.............................. 6,100
TV (47 CFR part 73) UHF Commercial:
Markets 1-10...................................... 34,650
Markets 11-25..................................... 32,950
Markets 26-50..................................... 20,950
Markets 51-100.................................... 12,325
Remaining Markets................................. 3,275
Construction Permits.............................. 3,275
Satellite Television Stations (All Markets)........... 1,250
Construction Permits--Satellite Television Stations... 670
Low Power TV, Class A TV, TV/FM Translators & Boosters 395
(47 CFR part 74).....................................
Broadcast Auxiliaries (47 CFR part 74)................ 10
CARS (47 CFR part 78)................................. 370
Cable Television Systems (per subscriber) (47 CFR part .93
76)..................................................
Interstate Telecommunication Service Providers (per .00375
revenue dollar)......................................
Earth Stations (47 CFR part 25)....................... 245
Space Stations (per operational station in 131,375
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100).................................................
Space Stations (per operational system in non- 141,750
geostationary orbit) (47 CFR part 25)................
International Bearer Circuits--Terrestrial/Satellites .35
(per 64KB circuit)...................................
International Bearer Circuits--Submarine Cable........ \1\
------------------------------------------------------------------------
\1\ See Table Below.

FY 2011 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
FM Classes
Population served AM AM AM AM FM Classes B, C, C0,
Class A Class B Class C Class D A, B1, & C3 C1 & C2
----------------------------------------------------------------------------------------------------------------
<= 25,000..................................... $700 $575 $525 $600 $675 $850
25,001-75,000................................. 1,400 1,150 800 900 1,350 1,500
75,001-150,000................................ 2,100 1,450 1,050 1,500 1,850 2,750
150,001-500,000............................... 3,150 2,450 1,575 1,800 2,875 3,600
500,001-1,200,000............................. 4,550 3,750 2,625 3,000 4,550 5,300
1,200,001-3,000,000........................... 7,000 5,750 3,950 4,800 7,425 8,500
> 3,000,000................................... 8,400 6,900 5,000 6,000 9,450 11,050
----------------------------------------------------------------------------------------------------------------

International Bearer Circuits--Submarine Cable
----------------------------------------------------------------------------------------------------------------
Submarine cable systems (capacity as
of December 31, 2010) Fee amount Address
----------------------------------------------------------------------------------------------------------------
< 2.5 Gbps............................. $12,825 FCC, International, P.O. Box 979084, St. Louis, MO 63197-
9000.
2.5 Gbps or greater, but less than 5 25,650 FCC, International, P.O. Box 979084, St. Louis, MO 63197-
Gbps. 9000.
5 Gbps or greater, but less than 10 51,300 FCC, International, P.O. Box 979084, St. Louis, MO 63197-
Gbps. 9000.
10 Gbps or greater, but less than 20 102,625 FCC, International, P.O. Box 979084, St. Louis, MO 63197-
Gbps. 9000.
20 Gbps or greater..................... 205,225 FCC, International, P.O. Box 979084, St. Louis, MO 63197-
9000.
----------------------------------------------------------------------------------------------------------------

Table--Sources of Payment Unit Estimates for FY 2011

In order to calculate individual service fees for FY 2011, we
adjusted FY 2010 payment units for each service to more accurately
reflect expected FY 2011 payment liabilities. We obtained our updated
estimates through a variety of means. For example, we used Commission
licensee data bases, actual prior year payment records and industry and
trade association projections when available. The databases we
consulted include our Universal Licensing System (``ULS''),
International Bureau Filing System (``IBFS''), Consolidated Database
System (``CDBS'') and Cable Operations and Licensing System
(``COALS''), as well as reports generated within the Commission such as
the Wireline Competition Bureau's Trends in Telephone Service and the
Wireless Telecommunications Bureau's Numbering Resource Utilization
Forecast.
We sought verification for these estimates from multiple sources
and, in all cases; we compared FY 2011 estimates with actual FY 2010
payment units to ensure that our revised

[[Page 49337]]

estimates were reasonable. Where appropriate, we adjusted and/or
rounded our final estimates to take into consideration the fact that
certain variables that impact on the number of payment units cannot yet
be estimated with sufficient accuracy. These include an unknown number
of waivers and/or exemptions that may occur in FY 2011 and the fact
that, in many services, the number of actual licensees or station
operators fluctuates from time to time due to economic, technical, or
other reasons. When we note, for example, that our estimated FY 2011
payment units are based on FY 2010 actual payment units, it does not
necessarily mean that our FY 2011 projection is exactly the same number
as in FY 2010. We have either rounded the FY 2011 number or adjusted it
slightly to account for these variables.

------------------------------------------------------------------------
Fee category Sources of payment unit estimates
------------------------------------------------------------------------
Land and Mobile (All), Microwave, Based on Wireless Telecommunications
218-219 MHz, Marine (Ship & Bureau (``WTB'') projections of new
Coast), Aviation (Aircraft & applications and renewals taking
Ground), GMRS, Amateur Vanity into consideration existing
Call Signs, Domestic Public Fixed. Commission licensee data bases.
Aviation (Aircraft) and Marine
(Ship) estimates have been adjusted
to take into consideration the
licensing of portions of these
services on a voluntary basis.
CMRS Cellular/Mobile Services..... Based on WTB projection reports, and
FY 2010 payment data.
CMRS Messaging Services........... Based on WTB reports, and FY 2010
payment data.
AM/FM Radio Stations.............. Based on CDBS data, adjusted for
exemptions, and actual FY 2010
payment units.
UHF/VHF Television Stations....... Based on CDBS data, adjusted for
exemptions, and actual FY 2010
payment units.
AM/FM/TV Construction Permits..... Based on CDBS data, adjusted for
exemptions, and actual FY 2010
payment units.
LPTV, Translators and Boosters, Based on CDBS data, adjusted for
Class A Television. exemptions, and actual FY 2010
payment units.
Broadcast Auxiliaries............. Based on actual FY 2010 payment
units.
BRS (formerly MDS/MMDS)........... Based on WTB reports and actual FY
LMDS.............................. 2010 payment units.
Based on WTB reports and actual FY
2010 payment units.
Cable Television Relay Service Based on data from Media Bureau's
(``CARS'') Stations. COALS database and actual FY 2010
payment units.
Cable Television System Based on publicly available data
Subscribers. sources for estimated subscriber
counts and actual FY 2010 payment
units.
Interstate Telecommunication Based on FCC Form 499-Q data for the
Service Providers. four quarters of calendar year
2010, the Wireline Competition
Bureau projected the amount of
calendar year 2009 revenue that
will be reported on 2011 FCC Form
499-A worksheets in April, 2011.
Earth Stations.................... Based on International Bureau
(``IB'') licensing data and actual
FY 2010 payment units.
Space Stations (GSOs & NGSOs)..... Based on IB data reports and actual
FY 2010 payment units.
International Bearer Circuits..... Based on IB reports and submissions
by licensees.
Submarine Cable Licenses.......... Based on IB license information.
------------------------------------------------------------------------

8. When calculating the fee methodology for AM and FM radio
stations, we consider many factors, such as facility attributes and the
population served by each station. The calculation of the population
served is determined by coupling current United States Census Bureau
data with technical and engineering data, as detailed in the table
below (Table--Factors, Measurements, and Calculations That Go into
Determining Station Signal Contours and Associated Population
Coverages). These population counts, along with the station's class and
type of service, are the basis for determining regulatory fees.
Although the 2010 Census data has been completed, the data is still
subject to revisions. Also, because FY 2011 regulatory fees are
determined on the basis of the station's attributes as of October 1,
2010, it would be inappropriate to apply incomplete 2010 Census data in
determining FY 2011 regulatory fees for radio stations. Therefore, we
will apply 2010 Census data in determining the population counts of
radio stations as of October 1, 2011, as part of our calculations of FY
2012 regulatory fees.

Table--Factors, Measurements, and Calculations That Go Into Determining
Station Signal Contours and Associated Population Coverages

AM Stations

For stations with nondirectional daytime antennas, the theoretical
radiation was used at all azimuths. For stations with directional
daytime antennas, specific information on each day tower, including
field ratio, phasing, spacing and orientation was retrieved, as well as
the theoretical pattern root-mean-square of the radiation in all
directions in the horizontal plane (``RMS'') figure milliVolt per meter
(mV/m) @ 1 km) for the antenna system. The standard, or modified
standard if pertinent, horizontal plane radiation pattern was
calculated using techniques and methods specified in Sec. Sec. 73.150
and 73.152 of the Commission's rules. Radiation values were calculated
for each of 360 radials around the transmitter site. Next, estimated
soil conductivity data was retrieved from a database representing the
information in FCC Figure R3. Using the calculated horizontal radiation
values, and the retrieved soil conductivity data, the distance to the
principal community (5 mV/m) contour was predicted for each of the 360
radials. The resulting distance to principal community contours were
used to form a geographical polygon. Population counting was
accomplished by determining which 2000 block centroids were contained
in the polygon. (A block centroid is the center point of a small area
containing population as computed by the U.S. Census Bureau.) The sum
of the population figures for all enclosed blocks represents the total
population for the predicted principal community coverage area.

FM Stations

The greater of the horizontal or vertical effective radiated power
(``ERP'') (kW) and respective height above average terrain (``HAAT'')
(m) combination was used. Where the antenna height above mean sea level
(``HAMSL'') was available, it was used in lieu of the average HAAT
figure to calculate specific HAAT figures for each of 360 radials under
study. Any available directional pattern information was applied as
well, to produce a radial-specific ERP figure. The HAAT and ERP figures
were used in conjunction with the Field Strength (50-50) propagation
curves specified in 47 CFR 73.313 of the

[[Page 49338]]

Commission's rules to predict the distance to the principal community
(70 dBu (decibel above 1 microVolt per meter) or 3.17 mV/m) contour for
each of the 360 radials. The resulting distance to principal community
contours were used to form a geographical polygon. Population counting
was accomplished by determining which 2000 block centroids were
contained in the polygon. The sum of the population figures for all
enclosed blocks represents the total population for the predicted
principal community coverage area.

B. Regulatory Fee Obligations for Digital Low Power, Class A, and TV
Translators/Boosters

9. The digital transition to full-service television stations was
completed on June 12, 2009, but the digital transition for Low Power,
Class A, and TV Translators/Boosters remains voluntary, and there is
presently no set date for the completion of this transition.
Historically, the discussion of digital transition conversion with
respect to regulatory fees has applied only to full-service television
stations. Hence, the ``digital only'' exemption does not impact this
class of regulatees. Because the digital transition in the Low Power,
Class A, and TV Translators/Booster facilities is still voluntary and
the transition will occur over a period time, some facilities may still
be in the process of converting from an analog to a digital service.
During this transition period, licensees of Low Power, Class A, and TV
Translator/Booster facilities may be operating in analog mode, in
digital mode, or in an analog and digital simulcast mode. Therefore,
for regulatory fee purposes, we conclude that a fee will be assessed
for each facility operating either in an analog or digital mode. In
instances in which a licensee is operating in both an analog and
digital mode as a simulcast, a single regulatory fee will be assessed
for this analog facility that has a digital companion channel. As
greater numbers of facilities convert to digital mode, the Commission
will provide revised instructions on how regulatory fees will be
assessed.

C. Commercial Mobile Radio Service Messaging Service

10. Commercial Mobile Radio Service (``CMRS'') Messaging Service,
which replaced the CMRS One-Way Paging fee category in 1997, includes
all narrowband services.\9\ Since 1997, the number of subscribers has
declined from 40.8 million to 4.9 million, and there does not appear to
be any sign of recovery to the subscriber levels of 1997-1999.\10\ We
sought comment on whether to continue to maintain the fee at the
existing level of $.08 per subscriber. We received one comment from the
American Association of Paging Carriers (``AAPC''). AAPC contends that
retaining the $0.08 per unit for CMRS Messaging is the minimum
appropriate action for the Commission to undertake.\11\ Moreover, AAPC
believes that after the Commission reviews its regulatory fee
methodology, the Commission will find, as the paging industry believes
it will, that the fee rate for the paging industry should be
reduced.\12\ We agree with AAPC that the prevailing circumstances in FY
2003 still exist today,\13\ and conclude that the FY 2011 CMRS
Messaging regulatory fee should remain at a rate of $0.08 per
subscriber.
---------------------------------------------------------------------------

\9\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 1997, MD Docket No. 96-186, Report and Order, 12 FCC Rcd 17161,
17184-85, para. 60 (1997) (``FY 1997 Report and Order'').
\10\ Between FY 1997 and FY 2010, the subscriber base in the
paging industry declined 89 percent from 40.8 million to 4.9 million
subscribers, according to FY 2010 collections data as of September
30, 2010.
\11\ See American Association of Paging Carriers comments at
page 2.
\12\ AAPC comments at page 3.
\13\ Beginning in FY 2003, the Commission maintained the paging
regulatory fee rate at $.08 per subscriber, the same level as in FY
2002, and it has maintained this level of $.08 per subscriber for
all subsequent years. AAPC (at page 3) acknowledges that the
circumstances that prompted the Commission to act in maintaining the
fee rate at $.08 per subscriber still exist today.
---------------------------------------------------------------------------

D. Private Land Mobile Radio Service (``PLMRS'')

11. PLMRS systems are used by licensees, generally companies, local
governments, and other organizations, for their own communications
needs. The services included in PLMRS are Public Safety, Industrial/
Business, Private Land Mobile Paging, and Radiolocation. In their
comments, PCIA--The Wireless Infrastructure Association, contends that
because the number of Private Land Mobile Radio Service licenses has
declined over 30 percent between 2006 and 2010,\14\ it is inequitable
to raise the ten-year license fee from $20 per year to $25 per year.
Furthermore, PCIA asserts that PLMRS is a declining industry, and the
Commission should ``exercise its discretion in assessing how to
regulate fees on industries with declining unit bases,'' particularly
in those instances where it is hard to pass on these regulatory fee
costs to its customers.\15\
---------------------------------------------------------------------------

\14\ See PCIA--The Wireless Infrastructure Association comments
at page 2.
\15\ PCIA comments at page 5.
---------------------------------------------------------------------------

12. We agree with PCIA that those industries that are declining and
also lack the ability to effectively pass the regulatory fees onto its
customers should be given special consideration for fee relief.\16\ We
note that the paging industry is in a similar situation with a
declining subscriber base, and we have maintained their per unit
regulatory fee at FY 2002 levels. Although PCIA projects the number of
PLMRS licenses to increase slightly in 2011,\17\ the number of PLMRS
licenses issued in FY 2011 is significantly lower than in FY 2004 and
FY 2005 where the estimated number of PLMRS licenses issued was over
four times greater.\18\ As a result, we believe the Commission should
exercise its discretion to maintain the FY 2011 regulatory fee at $20
per year. Based on an anticipated increase of 14 percent in the number
of licenses,\19\ we will increase our unit estimate from 9,300 to
10,600, which will reduce the per year fee to $22. However, we note
that if it were not for our rules regarding rounding to the nearest $5,
the actual fee for PLMRS (Shared) would be $22 per year, and not $20
per year. But because of our rounding rules, we conclude that the FY
2011 regulatory fee rate for the PLMRS (Shared) fee category is $20 per
year for a ten-year license.
---------------------------------------------------------------------------

\16\ PCIA comments at page 5.
\17\ PCIA comments at page 2.
\18\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2004, Report and Order, 19 FCC Rcd 11,662 MD Docket No. 04-73
in Attachment C (2004) (FY 2004 Report and Order), and Assessment
and Collection of Regulatory Fees for Fiscal Year 2005, Report and
Order and Order on Reconsideration, 20 FCC Rcd 12259, 12264 MD
Docket No. 05-59, 04-73 in Attachment C (2005) (FY 2005 R&O and
Order on Reconsideration).
\19\ PCIA comments at page 2.
---------------------------------------------------------------------------

E. Interstate Telecommunications Service Provider (ITSP)

13. In our FY 2011 Regulatory Fee Notice of Proposed Rulemaking, we
sought comment on our proposal to provide relief to the ITSP industry
by assessing ITSP regulatory fees on all ITSP revenues that are
reported on FCC Form 499-A, Lines 412(e), 420(d), and 420(e), the lines
upon which the Commission has traditionally assessed ITSP regulatory
fees. We received three comments and one reply comment.\20\ In

[[Page 49339]]

its comments, the United States Telecom Association (``USTelecom'')
urges the Commission to take a comprehensive approach to reforming the
regulatory fee structure, including an updated full-time employee (FTE)
analysis, reallocation of the costs of the support bureaus,
reexamination of the underlying assumptions of the current regulatory
fee structure, and incorporation of changes that have occurred in the
communications industry over time.\21\ While USTelecom supports
limitations in the ITSP fee increase, it provides no support for action
to effectuate such relief short of a complete overhaul of our
regulatory fee methodology and the assumptions underlying it.\22\
CTIA--The Wireless Association (``CTIA'') opposes the proposal to
assess all ITSP revenues, arguing that the Commission lacks both legal
authority and valid policy justification for its proposal.\23\ CTIA
also interprets the Commission's proposal as imposing a duplicative fee
assessment on the CMRS industry, arguing that the move would result in
an increase in regulatory fees of $108 million on CMRS providers in
addition to over $52 million in fees that CMRS providers will pay on
their subscriber fees.\24\ CTIA urges use of the same methodology as
the Commission used last year--spreading the regulatory fees across
other fee categories--while the Commission engages in a comprehensive
review of its FTEs by core bureau.\25\ In separate comments, Verizon
Wireless also opposes the Commission's proposal to apply the ITSP fee
to the ITSP revenues of CMRS licensees.\26\ Finally, in its reply
comments, AT&T supports the comments of USTelecom and CTIA.\27\
---------------------------------------------------------------------------

\20\ In the FY 2008 Report and Order and Further Notice of
Proposed Rulemaking (``FY 2008 FNPRM'') (73 FR 50285 (August 26,
2008) (2008)), we asked for comment on this same issue, noting that
the marketplace for ITSP service has changed since the fees were set
and asking interested parties to comment on how the market had
changed and the methodology we should use to determine the revision
to ITSP's proportionate share of regulatory fees. We also asked for
current information about the number of access lines, noting the
success of the numbers-based approach on which CMRS regulatory fees
are based. These issues remain outstanding, and we will include
comments filed in response to the FY 2008 FNPRM in the further
examination of these issues discussed in paragraph 27 of this
document.
\21\ See comments of USTelecom at page 1.
\22\ See comments of USTelecom at page 3.
\23\ See CTIA comments at page 1.
\24\ See CTIA comments at page 8.
\25\ See CTIA comments at pages 2-3.
\26\ See Verizon Wireless comments at page 3.
\27\ See AT&T reply comments at page 2.
---------------------------------------------------------------------------

14. First, it is necessary to address any misconception about the
impact, in terms of increased regulatory fees, our proposal would have
on CMRS licensees. Contrary to CTIA's assertions, the Notice of
Proposed Rulemaking did not propose assessing $108 million from
wireless providers in addition to $52 million in regulatory fees that
CMRS licensees currently pay.\28\ As the ``Table--Calculations of FY
2011 Revenue Requirements and Pro-Rata Fees'' illustrates, the
Commission proposed to collect $52 million from CMRS providers and $148
million from ALL ITSP providers; from within the $148 million assessed
to all ITSP revenues, the Commission estimated that only $7.2 million
would be derived from the ITSP revenues of predominantly non-ITSP
providers (e.g. wireless, satellite, etc.)--this $7.2 million is the
resulting additional amount in regulatory fees that is proposed in our
NPRM's proposed ITSP rate of $.00361, which is based on approximately
$2 billion in ITSP revenues reported by these entities on Form 499-A
Lines 412(e), 420(d), and 420(e)--ITSP revenue on which they currently
do not pay regulatory fees. Assessing this estimated $2 billion in ITSP
revenues would, in conjunction with the additional relief measure
proposed in the NPRM, help reduce the impact of the fee burden on all
ITSP payers by reducing the applicable ITSP fee rate from $0.00402 to
$0.00361.
---------------------------------------------------------------------------

\28\ See CTIA comments at page 8.
---------------------------------------------------------------------------

15. We are unpersuaded that assessing all ITSP revenues reported on
Lines 412(e), 420(d), and 420(e) on FCC Form 499-A exceeds our
statutory authority under section 159(b)(2)(A). However, we acknowledge
that the comments filed by USTelecom, CTIA, Verizon Wireless, and AT&T
raise important concerns about the need for a more comprehensive
approach to regulatory fee reform.\29\ As stated in the NPRM, we fully
intend to engage in that process as expeditiously as possible.\30\ To
that end, it is important that today we take only those measured steps
necessary to complete the FY 2011 regulatory fee assessment, so that we
can complete the regulatory fee assessment and collection in a timely
manner. Our proposal in the NPRM to provide some measure of regulatory
fee relief for ITSP providers has two components: (1) A 5.6 percent
assessment across all other fee categories, and (2) an assessment of an
estimated $2 billion in ITSP revenues reported by non-ITSP providers.
Of these two components, we will effectuate only one: A 5.6 percent
assessment across all other fee categories. We will not, at this time,
assess an estimated $2 billion in ITSP revenues reported by non-ITSP
providers.
---------------------------------------------------------------------------

\29\ See para. 27 supra. This same argument was made by several
commenters in response to the FY2008 FNPRM (73 FR 50285 (August 26,
2008) (2008)).
\30\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2011, MD Docket 11-76, Notice of Proposed Rulemaking, 76 FR
30605 (May 26, 2011) at para. 22 (2011) (``FY 2011 NPRM'').
---------------------------------------------------------------------------

16. Since we have already assessed a 5.6 percent assessment across
all other fee categories to provide some measure of relief to the
applicable ITSP rate, we will reduce the proposed ITSP revenue base by
$2.0 billion (from $41 billion to $39.0 billion), and re-calculate the
ITSP fee rate on a revenue base of $39 billion, as it would be
untenable to pass on any further increases across all other fee
categories. This approach provides some level of relief for the ever-
increasing ITSP rate, yet leaves the issue of whether all providers who
report ITSP revenues should pay on those revenues to be addressed in a
broader context of regulatory fee reform.
17. This limited, temporary adjustment for FY 2011 produces an
equitable result. If we provided no relief to limit the FY 2011 ITSP
fee rate, the fee rate applicable to ITSP revenues would have been
$.00402 per revenue dollar, an increase of 15.2 percent from FY 2010
rates. Had we provided the full measure of relief proposed in the NPRM,
the ITSP fee rate would have reduced to $.00361 per revenue dollar, an
increase of 3.4 percent from FY 2010 rates. However, since, for the
reasons stated above, we take only limited action to reduce the
increase to the ITSP rate, the action we take today will result in an
ITSP fee rate of $.00375 per revenue dollar, a 7.5 percent increase
from FY 2010 rates.\31\ This result is equitable not only for the ITSP
industry, but also for the other fee categories that are bearing the
fee burden associated with providing such relief. We conclude,
therefore, that the FY 2011 ITSP regulatory fee rate is $.00375 per
revenue dollar.
---------------------------------------------------------------------------

\31\ In addition to reducing the FY 2011 ITSP revenue base from
$41.0 billion to $39.0 billion because of our retraction, we were
able to increase the FY 2011 ITSP revenue base from $39.0 billion to
$39.5 billion because our more recent data estimates showed a slight
increase in revenues from our previous estimate (March 2011).
---------------------------------------------------------------------------

F. Amateur Radio Vanity Call Signs

18. We received a general comment from Raymond Awe regarding the
regulatory fees paid on Amateur Radio Vanity Call Signs. Mr. Awe urges
the Commission to keep the fee amount minimal, and to consider
assessing a Vanity fee only on the first issue of the Vanity call sign
or change in call sign.\32\
---------------------------------------------------------------------------

\32\ See comments of Raymond Awe at page 1.
---------------------------------------------------------------------------

19. The Commission tries to keep the regulatory fee for Vanity call
signs as minimal as possible. Between FY 2007 and FY 2010, the
regulatory fee for Vanity call signs increased from $1.17 (per year) to
$1.33 (per year), an

[[Page 49340]]

increase of $0.16 per year or $1.60 over a ten-year license period.\33\
We do not believe this increase is inequitable, and the Commission will
continue its efforts to keep this fee as minimal as possible. Regarding
Mr. Awe's recommendation to assess regulatory fees only at first issue
or at the time of a change in call sign, the fees that are collected
from Vanity call signs are used to offset the cost of monitoring and
researching new call sign requests to prevent the issuance of duplicate
call signs. More than likely, fees that are collected only on new
issues and at the time of changes in call signs will not generate
sufficient revenues to offset the cost of managing and monitoring this
work at the Commission. Therefore, we conclude that the basis upon
which the Commission collects fees on Amateur Radio Vanity call signs
will not change.
---------------------------------------------------------------------------

\33\ See Assessment and Collection of Regulatory Fees for Fiscal
Year FY 2007, MD Docket 07-81, Report and Order, 22 FCC Rcd 15712 in
Attachment C (``FY 2007 R&O'') and Assessment and Collection of
Regulatory Fees for Fiscal Year FY 2010, MD Docket 10-87, Report and
Order, 25 FCC Rcd 9278 in Appendix B (``FY 2010 R&O'').
---------------------------------------------------------------------------

G. Fee Waiver Policies

20. In our FY 2011 Notice of Proposed Rulemaking, we stated that as
our rules expressly provide, petitions for waiver of a regulatory fee
must be accompanied by the required fee ``unless accompanied by a
petition to defer payment due to financial hardship, supported by
documentation of the financial hardship.'' \34\ Similarly, petitions
for reduction of fees filed with less than the full fee due must be
accompanied by a request for deferral ``supported by documentation of
financial hardship.'' \35\ However, citing Sec. 1.1166 (b) of the
rules, which states that ``Deferrals of fees will be granted for a
period of six months following the date that the fee is initially
due,'' it can be argued that, even where supporting documentation of
financial hardship is not provided, a regulatee can delay its payment
of the fees owed for up to six months simply by requesting the
deferral.\36\ That argument is inconsistent with Sec. Sec. 1.1166 (c)
and (d) of our rules, which provide that petitions for waivers or
reductions will be dismissed if they are not accompanied by the full
fee owed, unless the regulatee requests a deferral of payment supported
by documentation of financial hardship.\37\ A regulatee's mere
allegation of financial hardship thus does not automatically entitle it
to a deferral of its obligation to pay regulatory fees; only a properly
supported claim of financial hardship will entitle the regulatee to a
deferral. Accordingly, if a request for deferral is not supported by
documentation of financial hardship, it will be denied, and an
associated petition for waiver or reduction will be dismissed. A
regulatee cannot delay payment on the theory that its deferral request
triggered an automatic six-month extension of its obligation to pay. We
sought comment on the proposal to amend Sec. 1.1166 (b) of the rules
\38\ to read, ``Deferrals of fees, if granted, will be for a designated
period of time not to exceed six months.'' We received no comments or
reply comments. Therefore, Sec. 1.1166(b) of the rules \39\ is amended
to read, ``Deferrals of fees, if granted, will be for a designated
period of time not to exceed six months.''
---------------------------------------------------------------------------

\34\ 47 CFR 1.1166(c).
\35\ 47 CFR 1.1166(d).
\36\ Hypothetically speaking, the current rule can be
interpreted to provide a regulatee an opportunity to file a waiver
and a deferral on the fee due date, and not make a regulatory fee
payment for a period of up to six months.
\37\ 47 CFR 1.1166(c) and (d) (requests for waivers and
reductions of fees ``that do not include the required fees or forms
will be dismissed unless accompanied by a petition to defer payment
due to financial hardship, supported by documentation of the
financial hardship.''
\38\ 47 CFR 1.1166(b).
\39\ 47 CFR 1.1166(b).
---------------------------------------------------------------------------

H. Administrative and Operational Issues

21. In FY 2009, the Commission implemented several changes in
procedures which simplified the payment and reconciliation processes of
FY 2009 regulatory fees. These changes proved to be very helpful to
both licensees and to the Commission. In FY 2011, the Commission will
promote greater use of technology (and less use of paper) to improve
the regulatory fee notification and collection process. We sought
general comment on the specific initiatives discussed in the paragraphs
below. We received no specific comments or reply comments on any steps
to take to promote greater use of technology in collecting regulatory
fees. The Commission will continue to promote greater efficiency in its
regulatory fee notification and collection process.
1. Mandatory Use of Fee Filer
22. In FY 2009, we instituted a mandatory filing requirement using
the Commission's electronic filing and payment system (also known as
``Fee Filer'').\40\ Licensees filing their annual regulatory fee
payments were required to begin the process by entering the
Commission's Fee Filer system with a valid FRN and password.\41\ This
change was beneficial to both licensees and to the Commission. For
licensees, the mandatory use of Fee Filer eliminates the need to
manually complete and submit a hardcopy Form 159, and for the
Commission, the data in electronic format made it much easier to
process payments more efficiently and effectively. We sought comment on
how to improve the mandatory use of Fee Filer for filing annual
regulatory fees. We received no specific comments or reply comments on
this issue. The mandatory use of Fee Filer does not mean that licensees
are expected to pay only through Fee Filer--it is only mandatory for
licensees to begin the process of filing their annual regulatory fees
using Fee Filer.
---------------------------------------------------------------------------

\40\ FY 2009 Report and Order at paras. 20 and 21.
\41\ Therefore, it is very important for licensees to have a
current and valid FRN address on file in the Commission's
Registration System (CORES).
---------------------------------------------------------------------------

2. Notification and Collection of Regulatory Fees
a. Pre-bills
23. In prior years, the Commission mailed pre-bills via surface
mail to licensees in select regulatory fee categories: Interstate
telecommunications service providers (``ITSPs''), Geostationary
(``GSO'') and Non-Geostationary (``NGSO'') satellite space station
licensees,\42\ holders of Cable Television Relay Service (``CARS'')
licenses, and Earth Station licensees.\43\ The remaining regulatees did
not receive pre-bills. In our FY 2009 Report and Order, the Commission
decided to make the information contained in these pre-bills viewable
in Fee Filer, rather than mailing pre-bills out to licensees via
surface mail.\44\ In FY 2011, the Commission proposed to continue its
practice of not mailing out hardcopy annual regulatory fee pre-bills,
and instead place the pre-bill information on the Commission's Web site
for licensees to access through the Commission's electronic filing and

[[Page 49341]]

payment system (``Fee Filer''). Regulatees can also look to the
Commission's Web site for information on upcoming events and deadlines
relating to regulatory fees. We sought comment on other changes to our
system of electronic notification that would more efficiently and
effectively inform regulatees of information and procedures pertaining
to regulatory fees. We received no specific comments or reply comments
on this issue. The Commission will continue its efforts to improve its
information and procedures relating to regulatory fees.
---------------------------------------------------------------------------

\42\ Geostationary orbit space station (``GSO'') licensees
received regulatory fee pre-bills for satellites that (1) were
licensed by the Commission and operational on or before October 1 of
the respective fiscal year; and (2) were not co-located with and
technically identical to another operational satellite on that date
(i.e., were not functioning as a spare satellite). Non-geostationary
orbit space station (``NGSO'') licensees received regulatory fee
pre-bills for systems that were licensed by the Commission and
operational on or before October 1 of the respective fiscal year.
\43\ A pre-bill is considered an account receivable in the
Commission's accounting system. Pre-bills reflect the amount owed
and have a payment due date of the last day of the regulatory fee
payment window. Consequently, if a pre-bill is not paid by the due
date, it becomes delinquent and is subject to our debt collection
procedures. See also 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
\44\ See FY 2009 Report and Order at 24, 26.
---------------------------------------------------------------------------

IV. Procedural Matters

24. Included below are procedural items as well as our current
payment and collection methods which we have revised over the past
several years to expedite the processing of regulatory fee payments. We
do not propose changes to these procedures. Rather, we include them
here as a useful way of reminding regulatory fee payers and the public
about these aspects of the annual regulatory fee collection process.

A. Public Notices and Fact Sheets

25. Each year we post public notices and fact sheets pertaining to
regulatory fees on our Web site. These documents contain information
about the payment due date and relevant regulatory fee payment
procedures. We will continue to post this information on http://www.fcc.gov/fees/regfees.html, but as in previous years, we will not
send out public notices and fact sheets to regulatees en masse.

B. Assessment Notifications

1. Media Services Licensees
26. Beginning in FY 2003, we sent fee assessment notifications via
surface mail to media services entities on a per-facility basis.\45\
These notifications provided the assessed fee amount for the facility
in question, as well as the data attributes that determined the fee
amount. We have since refined this initiative to be more electronic and
paperless.\46\ In our FY 2010 Notice of Proposed Rulemaking, we
proposed to discontinue mailing the media notifications beginning in FY
2011, relying instead on information on the Commission's Web site and
the use of the Commission-authorized Web site at http://www.fccfees.com.\47\ We kept the comment and reply comment period open
until September 30, 2010 to be receptive to the needs of media
licensees. We received no comments or reply comments on this particular
issue. Therefore, we conclude that beginning in FY 2011 the Commission
will discontinue mailing hardcopy notification assessment letters to
media licensees.
---------------------------------------------------------------------------

\45\ An assessment is a proposed statement of the amount of
regulatory fees owed by an entity to the Commission (or proposed
subscriber count to be ascribed for purposes of setting the entity's
regulatory fee), but it is not entered into the Commission's
accounting system as a current debt.
\46\ Some of those refinements have been to provide licensees
with a Commission-authorized Web site to update or correct any
information concerning their facilities, and to amend their fee-
exempt status, if need be. The notifications also provide licensees
with a telephone number to call in the event that they need customer
assistance.
\47\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2010, Report and Order, 25 FCC Rcd 9278 at para. 42 (2010)
(``FY 2010 Report and Order'').
---------------------------------------------------------------------------

2. CMRS Cellular and Mobile Services Assessments
27. As we have done in prior years, our procedures for conveying
CMRS subscriber counts to providers are as follows. We will mail an
initial assessment letter to Commercial Mobile Radio Service (CMRS)
providers using data from the Numbering Resource Utilization Forecast
(``NRUF'') report that is based on ``assigned'' number counts that have
been adjusted for porting to net Type 0 ports (``in'' and ``out'').\48\
The letter will include a listing of the carrier's Operating Company
Numbers (``OCNs'') upon which the assessment is based.\49\ The letters
will not include OCNs with their respective assigned number counts, but
rather, an aggregate total of assigned numbers for each carrier.
---------------------------------------------------------------------------

\48\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2005 and Assessment and Collection of Regulatory Fees for
Fiscal Year 2004, MD Docket Nos. 05-59 and 04-73, Report and Order
and Order on Reconsideration, 20 FCC Rcd 12259, 12264, paras. 38-44
(2005).
\49\ Id.
---------------------------------------------------------------------------

28. A carrier wishing to revise their subscriber count can access
Fee Filer after they receive their initial CMRS assessment letter and
revise their count. Providers should follow the prompts in Fee Filer to
record their subscriber revisions, along with any supporting
documentation.\50\ The Commission will then review the revised count
and supporting documentation and either approve or disapprove the
submission in Fee Filer. If the submission is disapproved, the
Commission will attempt to contact the provider so that the provider
will have an opportunity to discuss its revised subscriber count and/or
provide additional supporting documentation. If we receive no response
or correction to the initial assessment letter, or we do not reverse
the disapproval of the provider's revised count submission, we will
expect the fee payment to be based on the number of subscribers listed
on the initial assessment letter. Once the timeframe for revision has
passed, the subscriber counts will be finalized. These subscriber
counts will then be the basis upon which CMRS regulatory fees will be
expected. Providers will be able to view their final subscriber counts
online in Fee Filer. A final CMRS assessment letter will not be mailed
out.
---------------------------------------------------------------------------

\50\ In the supporting documentation, the provider will need to
state a reason for the change, such as a purchase or sale of a
subsidiary, the date of the transaction, and any other pertinent
information that will help to justify a reason for the change.
---------------------------------------------------------------------------

29. Because some carriers do not file the NRUF report, they may not
receive an initial letter of assessment. In these instances, the
carriers should compute their fee payment using the standard
methodology \51\ that is currently in place for CMRS Wireless services
(e.g., compute their subscriber counts as of December 31, 2010), and
submit their fee payment accordingly. Whether a carrier receives an
assessment letter or not, the Commission reserves the right to audit
the number of subscribers for which regulatory fees are paid. In the
event that the Commission determines that the number of subscribers
paid is inaccurate, the Commission will bill the carrier for the
difference between what was paid and what should have been paid.
---------------------------------------------------------------------------

\51\ See, e.g., Federal Communications Commission, Regulatory
Fees Fact Sheet: What You Owe--Commercial Wireless Services for FY
2010 at 1 (rel. September 2010).
---------------------------------------------------------------------------

3. Submarine Cable Allocation
30. The Commission collects a revenue amount each year based on a
Congressional mandate. Because the dollar amount differs each year, a
revenue apportionment is necessary each year to determine the projected
regulatory fee revenue that is to be collected from submarine cable
providers and from terrestrial/satellite facilities.\52\ Since FY 2009,
the Commission has used the 87.4/12.6 percent allocation proposed in
the Consensus Proposal as the percentage upon which to determine the
regulatory fee revenue amounts for submarine cable providers and
terrestrial/satellite facilities, respectively.\53\ Each year, the
Commission reserves the right to revise this 87.4/12.6 allocation.
Although we will continue to review this allocation as part of our
annual regulatory fee proceeding, we do not at this time find

[[Page 49342]]

any basis to alter the 87.4/12.6 percent revenue allocation for 2011
regulatory fees.
---------------------------------------------------------------------------

\52\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, Second Report and Order, 24 FCC Rcd 4208 at n. 35 (2009)
(``Submarine Cable Order'').
\53\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2009, Report and Order, 24 FCC Rcd 10301 at para. 8 (2009)
(``FY 2009 Report and Order'').
---------------------------------------------------------------------------

C. Re-Assessment of Regulatory Fee Issues in a Further Notice of
Proposed Rulemaking

31. Since 1994 when the first regulatory fees were collected, the
communications industry has undergone a rapid transformation. The
current basis of how regulatory fees are assessed, however, has changed
only slightly since its inception in 1994.\54\ In FY 2008, the
Commission released a Further Notice of Proposed Rulemaking which
identified some of the issues raised by commenters with regard to the
need for fundamental reform of our regulatory fee assessment
methodology.\55\ From this rulemaking, the Commission has already acted
on three of the issues: (1) A change in the bearer circuit methodology
for calculating regulatory fees, (2) the elimination of two regulatory
fee categories, the International Public Fixed Radio and International
High Frequency Broadcast Stations, and (3) the conversion of UHF and
VHF Television stations from analog to digital television.\56\ In our
FY 2010 Regulatory Fees Report & Order, we stated that in a future
proceeding, we will ``further examine the nature and extent of all
changes that need to be made to our regulatory fee schedule and
calculations. In a separate and forthcoming action, we will call for
comment on issues including, but not limited to, how changes in the
telecommunications marketplace may warrant rebalancing of regulatory
fees among existing service providers * * *'' \57\ In response to our
FY 2011 Notice of Proposed Rulemaking, we have heard the call again
from commenters and reply commenters to re-examine our regulatory fee
structure. As our commitment to this ``forthcoming action'', the
Commission will by the end of calendar year 2011, initiate a further
rulemaking that will update the record on regulatory fee rebalancing,
as well as expand this inquiry to include new issues and services not
covered by the 2008 Further Notice of Proposed Rulemaking, such as
whether and how to re-assess the regulatory fee burden of all fee
categories, whether to incorporate 499-A wireless revenue in the
calculation of ITSP regulatory fees, and whether to eliminate the
regulatory fee portion (but not the application fee portion) of General
Mobile Radio Service (GMRS).
---------------------------------------------------------------------------

\54\ 47 U.S.C. 159(a) and 159(b).
\55\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2008, MD Docket No. 08-65, RM-11312, Report and Order and
Further Notice of Proposed Rulemaking, 73 FR 50201 (August 26, 2008)
at paras. 38-41.
\56\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2009, Report and Order, 24 FCC Rcd 10301 (2009) at paras. 7-13
(``FY 2009 Report and Order'').
\57\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2010, MD Docket No. 10-87, Report and Order, 25 FCC Rcd 9278
para. 31 (2010).
---------------------------------------------------------------------------

D. Streamlined Regulatory Fee Payment Process

1. Cable Television Subscribers
32. We will continue to permit cable television operators to base
their regulatory fee payment on their company's aggregate year-end
subscriber count, rather than requiring them to report cable subscriber
counts on a per community unit identifier (``CUID'') basis.
2. CMRS Cellular and Mobile Providers
33. In FY 2006, we streamlined the CMRS payment process by
eliminating the requirement for CMRS providers to identify their
individual call signs when making their regulatory fee payment, instead
allowing CMRS providers to pay their regulatory fees only at the
aggregate subscriber level without having to identify their various
call signs.\58\ We will continue this practice in FY 2011. In FY 2007,
we consolidated the CMRS cellular and CMRS mobile fee categories into
one fee category with a single fee code, thereby eliminating the
requirement for CMRS providers to separate their subscriber counts into
CMRS cellular and CMRS mobile fee categories during the regulatory fee
payment process. This consolidation of fee categories enabled the
Commission to process payments more quickly and accurately. For FY
2011, we will continue this practice of combining the CMRS cellular and
CMRS mobile fee categories into one regulatory fee category.
---------------------------------------------------------------------------

\58\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092,
8105, para. 48 (2006).
---------------------------------------------------------------------------

3. Interstate Telecommunications Service Providers (``ITSP'')
34. In FY 2007, we adopted a proposal to round lines 14 (total
subject revenues) and 16 (total regulatory fee owed) on FCC Form 159-W
to the nearest dollar. This revision enabled the Commission to process
the ITSP regulatory fee payments more quickly because rounding was
performed in a consistent manner and eliminated processing issues that
occurred in prior years. In FY 2011, we will continue rounding lines 14
and 16 when calculating the FY 2011 ITSP fee obligation. In addition,
we will continue the practice of not mailing out Form 159-W via surface
mail.

E. Payment of Regulatory Fees

1. Lock Box Bank
35. All lock box payments to the Commission for FY 2011 will be
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC.
During the regulatory fee season, for those licensees paying by check,
money order, or by credit card using Form 159-E remittance advice, the
fee payment and Form 159-E remittance advice should be mailed to the
following address: Federal Communications Commission, Regulatory Fees,
P.O. Box 979084, St. Louis, MO 63197-9000. Additional payment options
and instructions are posted at http://www.fcc.gov/fees/regfees.html.
2. Receiving Bank for Wire Payments
36. The receiving bank for all wire payments is the Federal Reserve
Bank, New York, New York (TREAS NYC). When making a wire transfer,
regulatees must fax a copy of their Fee Filer generated Form 159-E to
U.S. Bank, St. Louis, Missouri at (314) 418-4232 at least one hour
before initiating the wire transfer (but on the same business day), so
as not to delay crediting their account. Regulatees should discuss
arrangements (including bank closing schedules) with their bankers
several days before they plan to make the wire transfer to allow
sufficient time for the transfer to be initiated and completed before
the deadline. Complete instructions for making wire payments are posted
at http://www.fcc.gov/fees/wiretran.html.
3. De Minimis Regulatory Fees
37. Regulatees whose total FY 2011 regulatory fee liability,
including all categories of fees for which payment is due, is less than
$10 are exempted from payment of FY 2011 regulatory fees.
4. Standard Fee Calculations and Payment Dates
38. The Commission will accept fee payments made in advance of the
window for the payment of regulatory fees. The responsibility for
payment of fees by service category is as follows:
Media Services: Regulatory fees must be paid for initial
construction permits that were granted on or before October 1, 2010 for
AM/FM radio stations, VHF/UHF full service television stations, and
satellite television stations. Regulatory fees must be paid for all
broadcast facility licenses granted on or before October 1, 2010. In

[[Page 49343]]

instances where a permit or license is transferred or assigned after
October 1, 2010, responsibility for payment rests with the holder of
the permit or license as of the fee due date.
Wireline (Common Carrier) Services: Regulatory fees must
be paid for authorizations that were granted on or before October 1,
2010. In instances where a permit or license is transferred or assigned
after October 1, 2010, responsibility for payment rests with the holder
of the permit or license as of the fee due date. We note that audio
bridging service providers are included in this category.\59\
---------------------------------------------------------------------------

\59\ Audio bridging services are toll teleconferencing services,
and audio bridging service providers are required to contribute
directly to the universal service fund based on revenues from these
services. On June 30, 2008, the Commission released the InterCall
Order, in which the Commission stated that InterCall, Inc. and all
similarly situated audio bridging service providers are required to
contribute directly to the universal service fund. See Request for
Review by InterCall, Inc. of Decision of Universal Service
Administrator, CC Docket No. 96-45, Order, 23 FCC Rcd 10731 (2008)
(``InterCall Order'').
---------------------------------------------------------------------------

Wireless Services: CMRS cellular, mobile, and messaging
services (fees based on number of subscribers or telephone number
count): Regulatory fees must be paid for authorizations that were
granted on or before October 1, 2010. The number of subscribers, units,
or telephone numbers on December 31, 2010 will be used as the basis
from which to calculate the fee payment. In instances where a permit or
license is transferred or assigned after October 1, 2010,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
The first eleven regulatory fee categories in our Schedule
of Regulatory Fees (see Table--FY 2011 Schedule of Regulatory Fees) pay
``small multi-year wireless regulatory fees.'' Entities pay these
regulatory fees in advance for the entire amount of their five-year or
ten-year term of initial license, and only pay regulatory fees again
when the license is renewed or a new license is obtained. We include
these fee categories in our Schedule of Regulatory Fees to publicize
our estimates of the number of ``small multi-year wireless'' licenses
that will be renewed or newly obtained in FY 2011.
Multichannel Video Programming Distributor Services (cable
television operators and CARS licensees): Regulatory fees must be paid
for the number of basic cable television subscribers as of December 31,
2010.\60\ Regulatory fees also must be paid for CARS licenses that were
granted on or before October 1, 2010. In instances where a permit or
license is transferred or assigned after October 1, 2010,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
---------------------------------------------------------------------------

\60\ Cable television system operators should compute their
basic subscribers as follows: Number of single family dwellings +
number of individual households in multiple dwelling unit
(apartments, condominiums, mobile home parks, etc.) paying at the
basic subscriber rate + bulk rate customers + courtesy and free
service. Note: Bulk-Rate Customers = Total annual bulk-rate charge
divided by basic annual subscription rate for individual households.
Operators may base their count on ``a typical day in the last full
week'' of December 2010, rather than on a count as of December 31,
2010.
---------------------------------------------------------------------------

International Services: Regulatory fees must be paid for
earth stations, geostationary orbit space stations and non-
geostationary orbit satellite systems that were licensed and
operational on or before October 1, 2010. In instances where a permit
or license is transferred or assigned after October 1, 2010,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
International Services: Submarine Cable Systems:
Regulatory fees for submarine cable systems are to be paid on a per
cable landing license basis based on circuit capacity as of December
31, 2010. In instances where a license is transferred or assigned after
October 1, 2010, responsibility for payment rests with the holder of
the license as of the fee due date. For regulatory fee purposes, the
allocation in FY 2011 will remain at 87.6 percent for submarine cable
and 12.4 percent for satellite/terrestrial facilities.
International Services: Terrestrial and Satellite
Services: Finally, regulatory fees for International Bearer Circuits
are to be paid by facilities-based common carriers that have active
(used or leased) international bearer circuits as of December 31, 2010
in any terrestrial or satellite transmission facility for the provision
of service to an end user or resale carrier, which includes active
circuits to themselves or to their affiliates. In addition, non-common
carrier satellite operators must pay a fee for each circuit sold or
leased to any customer, including themselves or their affiliates, other
than an international common carrier authorized by the Commission to
provide U.S. international common carrier services. ``Active circuits''
for these purposes include backup and redundant circuits as of December
31, 2010. Whether circuits are used specifically for voice or data is
not relevant for these purposes in determining that they are active
circuits. In instances where a permit or license is transferred or
assigned after October 1, 2010, responsibility for payment rests with
the holder of the permit or license as of the fee due date. For
regulatory fee purposes, the allocation in FY 2011 will remain at 87.6
percent for submarine cable and 12.4 percent for satellite/terrestrial
facilities.

F. Enforcement

39. To be considered timely, regulatory fee payments must be
received and stamped at the lockbox bank by the last day of the
regulatory fee filing window. Section 9(c) of the Act requires us to
impose a late payment penalty of 25 percent of the unpaid amount to be
assessed on the first day following the deadline date for filing of
these fees.\61\ Failure to pay regulatory fees and/or any late penalty
will subject regulatees to sanctions, including those set forth in
Sec. 1.1910 of the Commission's rules \62\ and in the Debt Collection
Improvement Act of 1996 (``DCIA'').\63\ We also assess administrative
processing charges on delinquent debts to recover additional costs
incurred in processing and handling the related debt pursuant to the
DCIA and Sec. 1.1940(d) of the Commission's rules.\64\ These
administrative processing charges will be assessed on any delinquent
regulatory fee, in addition to the 25 percent late charge penalty. In
case of partial payments (underpayments) of regulatory fees, the
licensee will be given credit for the amount paid, but if it is later
determined that the fee paid is incorrect or not timely paid, then the
25 percent late charge penalty (and other charges and/or sanctions, as
appropriate) will be assessed on the portion that is not paid in a
timely manner.
---------------------------------------------------------------------------

\61\ 47 U.S.C. 159(c).
\62\ See 47 CFR 1.1910.
\63\ Delinquent debt owed to the Commission triggers application
of the ``red light rule'' which requires offsets or holds on pending
disbursements. 47 CFR 1.1910. In 2004, the Commission adopted rules
implementing the requirements of the DCIA. See Amendment of Parts 0
and 1 of the Commission's Rules, MD Docket No. 02-339, Report and
Order, 19 FCC Rcd 6540 (2004); 47 CFR Part 1, Subpart O, Collection
of Claims Owed the United States.
\64\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------

40. We will withhold action on any applications or other requests
for benefits filed by anyone who is delinquent in any non-tax debts
owed to the Commission (including regulatory fees) and will ultimately
dismiss those applications or other requests if payment of the
delinquent debt or other satisfactory arrangement for payment is not
made.\65\ Failure to pay regulatory fees can also result in the
initiation of a proceeding to revoke any and all authorizations held by
the entity

[[Page 49344]]

responsible for paying the delinquent fee(s).
---------------------------------------------------------------------------

\65\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.

Table--Reference to FY 2010 Schedule of Regulatory Fees
[Regulatory fees for the categories shaded in gray are collected by the
Commission in advance to cover the term of the license and are submitted
along with the application at the time the application is filed.]
------------------------------------------------------------------------
Annual
Fee category regulatory fee
(U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).. 40
Microwave (per license) (47 CFR part 101)............. 25
218-219 MHz (Formerly Interactive Video Data Service) 65
(per license) (47 CFR part 95).......................
Marine (Ship) (per station) (47 CFR part 80).......... 10
Marine (Coast) (per license) (47 CFR part 80)......... 45
General Mobile Radio Service (per license) (47 CFR 5
part 95).............................................
Rural Radio (47 CFR part 22) (previously listed under 20
the Land Mobile category)............................
PLMRS (Shared Use) (per license) (47 CFR part 90)..... 20
Aviation (Aircraft) (per station) (47 CFR part 87).... 5
Aviation (Ground) (per license) (47 CFR part 87)...... 10
Amateur Vanity Call Signs (per call sign) (47 CFR part 1.33
97)..................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts .18
20, 22, 24, 27, 80 and 90)...........................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90).......................................
Broadband Radio Service (formerly MMDS/ MDS) (per 310
license) (47 CFR part 21)............................
Local Multipoint Distribution Service (per call sign) 310
(47 CFR, part 101)...................................
AM Radio Construction Permits......................... 390
FM Radio Construction Permits......................... 675
TV (47 CFR part 73) VHF Commercial:
Markets 1-10...................................... 81,550
Markets 11-25..................................... 63,275
Markets 26-50..................................... 42,550
Markets 51-100.................................... 23,750
Remaining Markets................................. 6,125
Construction Permits.............................. 6,125
TV (47 CFR part 73) UHF Commercial:
Markets 1-10...................................... 32,275
Markets 11-25..................................... 30,075
Markets 26-50..................................... 18,900
Markets 51-100.................................... 11,550
Remaining Markets................................. 3,050
Construction Permits.............................. 3,050
Satellite Television Stations (All Markets)........... 1,300
Construction Permits--Satellite Television Stations... 675
Low Power TV, Class A TV, TV/FM Translators & Boosters 415
(47 CFR part 74).....................................
Broadcast Auxiliaries (47 CFR part 74)................ 10
CARS (47 CFR part 78)................................. 315
Cable Television Systems (per subscriber) (47 CFR part .89
76)..................................................
Interstate Telecommunication Service Providers (per .00349
revenue dollar)......................................
Earth Stations (47 CFR part 25)....................... 240
Space Stations (per operational station in 127,925
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100).................................................
Space Stations (per operational system in non- 138,050
geostationary orbit) (47 CFR part 25)................
International Bearer Circuits--Terrestrial/Satellites .39
(per 64KB circuit)...................................
International Bearer Circuits--Submarine Cable........ (\1\)
------------------------------------------------------------------------
\1\See Table Below.

FY 2010 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
FM Classes
Population served AM Class AM Class AM Class AM Class FM Classes B, C, C0,
A B C D A, B1 & C3 C1 & C2
----------------------------------------------------------------------------------------------------------------
<= 25,000..................................... $675 $550 $500 $575 $650 $825
25,001-75,000................................. 1,350 1,075 750 875 1,325 1,450
75,001-150,000................................ 2,025 1,350 1,000 1,450 1,825 2,725
150,001-500,000............................... 3,050 2,300 1,500 1,725 2,800 3,550
500,001-1,200,000............................. 4,400 3,500 2,500 2,875 4,450 5,225
1,200,001-3,000,000........................... 6,750 5,400 3,750 4,600 7,250 8,350
> 3,000,000................................... 8,100 6,475 4,750 5,750 9,250 10,850
----------------------------------------------------------------------------------------------------------------

[[Page 49345]]

International Bearer Circuits--Submarine Cable
----------------------------------------------------------------------------------------------------------------
Submarine cable systems (capacity as of
December 31, 2009) Fee amount Address
----------------------------------------------------------------------------------------------------------------
< 2.5 Gbps............................. $14,625 FCC, International P.O. Box 979084, St. Louis, MO 63197-
9000.
2.5 Gbps or greater, but less than 5 29,250 FCC, International P.O. Box 979084, St. Louis, MO 63197-
Gbps. 9000.
5 Gbps or greater, but less than 10 58,500 FCC, International, P.O. Box 979084, St. Louis, MO 63197-
Gbps. 9000.
10 Gbps or greater, but less than 20 116,975 FCC, International P.O. Box 979084, St. Louis, MO 63197-
Gbps. 9000.
20 Gbps or greater..................... 233,950 FCC, International, P.O. Box 979084, St. Louis, MO 63197-
9000.
----------------------------------------------------------------------------------------------------------------

FINAL REGULATORY FLEXIBILITY ANALYSIS

41. As required by the Regulatory Flexibility Act (``RFA''),\66\
the Commission prepared an Initial Regulatory Flexibility Analysis
(``IRFA'') of the possible significant economic impact on small
entities by the policies and rules proposed in its Notice of Proposed
Rulemaking. Written public comments were sought on the FY 2011 fees
proposal, including comments on the IRFA. This Final Regulatory
Flexibility Analysis (``FRFA'') conforms to the RFA.\67\
---------------------------------------------------------------------------

\66\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by
the Contract With America Advancement Act of 1996, Public Law 104-
121, 110 Stat. 847 (1996) (``CWAAA''). Title II of the CWAAA is the
Small Business Regulatory Enforcement Fairness Act of 1996
(``SBREFA'').
\67\ 5 U.S.C. 604.
---------------------------------------------------------------------------

I. Need for, and Objectives of, the Notice

42. This rulemaking proceeding was initiated for the Commission to
amend its Schedule of Regulatory Fees in the amount of $335,794,000,
which is the amount that Congress has required the Commission to
recover. The Commission seeks to collect the necessary amount through
its revised Schedule of Regulatory Fees in the most efficient manner
possible and without undue public burden.

II. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA

43. No parties have raised issues in response to the IRFA.

III. Description and Estimate of the Number of Small Entities To Which
the Rules Will Apply

44. 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.\68\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \69\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\70\ 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.\71\
---------------------------------------------------------------------------

\68\ 5 U.S.C. 603(b)(3).
\69\ 5 U.S.C. 601(6).
\70\ 5 U.S.C. 601(3) (incorporating by reference the definition
of ``small-business concern'' in the Small Business Act, 15 U.S.C.
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a
small business applies ``unless an agency, after consultation with
the Office of Advocacy of the Small Business Administration and
after opportunity for public comment, establishes one or more
definitions of such term which are appropriate to the activities of
the agency and publishes such definition(s) in the Federal
Register.''
\71\ 15 U.S.C. 632.
---------------------------------------------------------------------------

45. Small Businesses. Nationwide, there are a total of
approximately 29.6 million small businesses, according to the SBA.\72\
---------------------------------------------------------------------------

\72\ See SBA, Office of Advocacy, ``Frequently Asked Questions,
``http://web.sba.gov/faqs'' (accessed Jan. 2009).
---------------------------------------------------------------------------

46. Small Organizations. Nationwide, as of 2002, there are
approximately 1.6 million small organizations.\73\ A ``small
organization'' is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
\74\
---------------------------------------------------------------------------

\73\ Independent Sector, The New Nonprofit Almanac & Desk
Reference (2002).
\74\ 5 U.S.C. 601(4).
---------------------------------------------------------------------------

47. Small Governmental Jurisdictions. 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.'' \75\ Census Bureau data for
2002 indicate that there were 87,525 local governmental jurisdictions
in the United States.\76\ We estimate that, of this total, 84,377
entities were ``small governmental jurisdictions.'' \77\ Thus, we
estimate that most governmental jurisdictions are small.
---------------------------------------------------------------------------

\75\ 5 U.S.C. 601(5).
\76\ U.S. Census Bureau, Statistical Abstract of the United
States: 2006, Section 8, p. 272, Table 415.
\77\ We assume that the villages, school districts, and special
districts are small, and total 48,558. See U.S. Census Bureau,
Statistical Abstract of the United States: 2006, section 8, p. 273,
Table 417. For 2002, Census Bureau data indicate that the total
number of county, municipal, and township governments nationwide was
38,967, of which 35,819 were small. Id.
---------------------------------------------------------------------------

48. We have included small incumbent local exchange carriers in
this present RFA analysis. As noted above, a ``small business'' under
the RFA is one that, inter alia, meets the pertinent small business
size standard (e.g., a telephone communications business having 1,500
or fewer employees), and ``is not dominant in its field of operation.''
\78\ The SBA's Office of Advocacy contends that, for RFA purposes,
small incumbent local exchange carriers are not dominant in their field
of operation because any such dominance is not ``national'' in
scope.\79\ We have therefore included small incumbent local exchange
carriers in this RFA analysis, although we emphasize that this RFA
action has no effect on Commission analyses and determinations in
other, non-RFA contexts.
---------------------------------------------------------------------------

\78\ 15 U.S.C. 632.
\79\ Letter from Jere W. Glover, Chief Counsel for Advocacy,
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small
Business Act contains a definition of ``small-business concern,''
which the RFA incorporates into its own definition of ``small
business.'' See 15 U.S.C. 632(a) (``Small Business Act''); 5 U.S.C.
601(3) (``RFA''). SBA regulations interpret ``small business
concern'' to include the concept of dominance on a national basis.
See 13 CFR 121.102(b).
---------------------------------------------------------------------------

49. Incumbent Local Exchange Carriers (``ILECs''). Neither the
Commission nor the SBA has developed a small business size standard
specifically for incumbent local exchange services. The appropriate
size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or

[[Page 49346]]

fewer employees.\80\ According to Commission data,\81\ 1,311 carriers
have reported that they are engaged in the provision of incumbent local
exchange services. Of these 1,311 carriers, an estimated 1,024 have
1,500 or fewer employees and 287 have more than 1,500 employees.
Consequently, the Commission estimates that most providers of incumbent
local exchange service are small businesses that may be affected by our
action.
---------------------------------------------------------------------------

\80\ 13 CFR 121.201, North American Industry Classification
System (NAICS) code 517110.
\81\ FCC, Wireline Competition Bureau, Industry Analysis and
Technology Division, ``Trends in Telephone Service'' at Table 5.3,
Page 5-5 (Aug. 2008) (``Trends in Telephone Service''). This source
uses data that are current as of November 1, 2006.
---------------------------------------------------------------------------

50. Competitive Local Exchange Carriers (``CLECs''), 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 size standard under SBA rules is for
the category Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer
employees.\82\ According to Commission data,\83\ 1,005 carriers have
reported that they are engaged in the provision of either competitive
access provider services or competitive local exchange carrier
services. Of these 1,005 carriers, an estimated 918 have 1,500 or fewer
employees and 87 have more than 1,500 employees. In addition, 16
carriers have reported that they are ``Shared-Tenant Service
Providers,'' and all 16 are estimated to have 1,500 or fewer employees.
In addition, 89 carriers have reported that they are ``Other Local
Service Providers.'' Of the 89, all have 1,500 or fewer employees.
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 our action.
---------------------------------------------------------------------------

\82\ 13 CFR 121.201, NAICS code 517110.
\83\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

51. 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.\84\ According to Commission data,\85\ 151 carriers have
reported that they are engaged in the provision of local resale
services. Of these, an estimated 149 have 1,500 or fewer employees and
two have more than 1,500 employees. Consequently, the Commission
estimates that the majority of local resellers are small entities that
may be affected by our action.
---------------------------------------------------------------------------

\84\ 13 CFR 121.201, NAICS code 517310.
\85\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

52. Toll 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.\86\ According to Commission data,\87\ 815 carriers have
reported that they are engaged in the provision of toll resale
services. Of these, an estimated 787 have 1,500 or fewer employees and
28 have more than 1,500 employees. Consequently, the Commission
estimates that the majority of toll resellers are small entities that
may be affected by our action.
---------------------------------------------------------------------------

\86\ 13 CFR 121.201, NAICS code 517310.
\87\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

53. Payphone Service Providers (``PSPs''). Neither the Commission
nor the SBA has developed a small business size standard specifically
for payphone services providers. The appropriate size standard under
SBA rules is for the category Wired Telecommunications Carriers. Under
that size standard, such a business is small if it has 1,500 or fewer
employees.\88\ According to Commission data,\89\ 526 carriers have
reported that they are engaged in the provision of payphone services.
Of these, an estimated 524 have 1,500 or fewer employees and two have
more than 1,500 employees. Consequently, the Commission estimates that
the majority of payphone service providers are small entities that may
be affected by our action.
---------------------------------------------------------------------------

\88\ 3 CFR 121.201, NAICS code 517110.
\89\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

54. Interexchange Carriers (``IXCs''). Neither the Commission nor
the SBA has developed a small business size standard specifically for
providers of interexchange services. The appropriate size standard
under SBA rules is for the category Wired Telecommunications Carriers.
Under that size standard, such a business is small if it has 1,500 or
fewer employees.\90\ According to Commission data,\91\ 300 carriers
have reported that they are engaged in the provision of interexchange
service. Of these, an estimated 268 have 1,500 or fewer employees and
32 have more than 1,500 employees. Consequently, the Commission
estimates that the majority of IXCs are small entities that may be
affected by our action.
---------------------------------------------------------------------------

\90\ 13 CFR 121.201, NAICS code 517110.
\91\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

55. Operator Service Providers (``OSPs''). Neither the Commission
nor the SBA has developed a small business size standard specifically
for operator service providers. The appropriate size standard under SBA
rules is for the category Wired Telecommunications Carriers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees.\92\ According to Commission data,\93\ 28 carriers have
reported that they are engaged in the provision of operator services.
Of these, an estimated 27 have 1,500 or fewer employees and one has
more than 1,500 employees. Consequently, the Commission estimates that
the majority of OSPs are small entities that may be affected by our
action.
---------------------------------------------------------------------------

\92\ 13 CFR 121.201, NAICS code 517110.
\93\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

56. 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 size standard under SBA
rules is for the category Telecommunications Resellers. Under that size
standard, such a business is small if it has 1,500 or fewer
employees.\94\ According to Commission data,\95\ 88 carriers have
reported that they are engaged in the provision of prepaid calling
cards. Of these, an estimated 85 have 1,500 or fewer employees and
three have more than 1,500 employees. Consequently, the Commission
estimates that the majority of prepaid calling card providers are small
entities that may be affected by our action.
---------------------------------------------------------------------------

\94\ 13 CFR 121.201, NAICS code 517310.
\95\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

57. 800 and 800-Like Service Subscribers.\96\ Neither the
Commission nor the SBA has developed a small business size standard
specifically for 800 and 800-like service (``toll free'') subscribers.
The appropriate size standard under SBA rules is for the category
Telecommunications Resellers. Under that size standard, such a business
is small if it has 1,500 or fewer employees.\97\ The most reliable
source of information regarding the number of these service subscribers
appears to be data the Commission receives from Database Service
Management on the 800, 866, 877, and 888 numbers in use.\98\ According
to our data, at the end of December 2007, the number of 800 numbers
assigned was 7,860,000; the

[[Page 49347]]

number of 888 numbers assigned was 5,210,184; the number of 877 numbers
assigned was 4,388,682; and the number of 866 numbers assigned was
7,029,116. We do not have data specifying the number of these
subscribers that are independently owned and operated or have 1,500 or
fewer employees, and thus are unable at this time to estimate with
greater precision the number of toll free subscribers that would
qualify as small businesses under the SBA size standard. Consequently,
we estimate that there are 7,860,000 or fewer small entity 800
subscribers; 5,210,184 or fewer small entity 888 subscribers; 4,388,682
or fewer small entity 877 subscribers, and 7,029,116 or fewer entity
866 subscribers.
---------------------------------------------------------------------------

\96\ We include all toll-free number subscribers in this
category.
\97\ 13 CFR 121.201, NAICS code 517310.
\98\ ``Trends in Telephone Service'' at Tables 18.4, 18.5, 18.6,
and 18.7.
---------------------------------------------------------------------------

58. Satellite Telecommunications and All Other Telecommunications.
These two economic census categories address the satellite industry.
The first category has a small business size standard of $15 million or
less in average annual receipts, under SBA rules.\99\ The second has a
size standard of $25 million or less in annual receipts.\100\ The most
current Census Bureau data in this context, however, are from the
(last) economic census of 2002, and we will use those figures to gauge
the prevalence of small businesses in these categories.\101\
---------------------------------------------------------------------------

\99\ 13 CFR 121.201, NAICS code 517410.
\100\ 13 CFR 121.201, NAICS code 517919.
\101\ 13 CFR 121.201, NAICS codes 517410 and 517910 (2002).
---------------------------------------------------------------------------

59. The category of Satellite Telecommunications ``comprises
establishments primarily engaged in providing telecommunications
services to other establishments in the telecommunications and
broadcasting industries by forwarding and receiving communications
signals via a system of satellites or reselling satellite
telecommunications.'' \102\ For this category, Census Bureau data for
2002 show that there were a total of 371 firms that operated for the
entire year.\103\ Of this total, 307 firms had annual receipts of under
$10 million, and 26 firms had receipts of $10 million to
$24,999,999.\104\ Consequently, we estimate that the majority of
Satellite Telecommunications firms are small entities that might be
affected by our action.
---------------------------------------------------------------------------

\102\ U.S. Census Bureau, 2007 NAICS Definitions, ``517410
Satellite Telecommunications''; http://www.census.gov/naics/2007/def/ND517410.HTM.
\103\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 517410 (issued Nov. 2005).
\104\ Id. An additional 38 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------

60. The second category of All Other Telecommunications comprises,
inter alia, ``establishments 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.'' \105\ For
this category, Census Bureau data for 2002 show that there were a total
of 332 firms that operated for the entire year.\106\ Of this total, 303
firms had annual receipts of under $10 million and 15 firms had annual
receipts of $10 million to $24,999,999.\107\ Consequently, we estimate
that the majority of All Other Telecommunications firms are small
entities that might be affected by our action.
---------------------------------------------------------------------------

\105\ U.S. Census Bureau, 2007 NAICS Definitions, ``517919 All
Other Telecommunications''; http://www.census.gov/naics/2007/def/ND517919.HTM#N517919.
\106\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 517910 (issued Nov. 2005).
\107\ Id. An additional 14 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------

61. Wireless Telecommunications Carriers (except Satellite). Since
2007, the Census Bureau has placed wireless firms within this new,
broad, economic census category.\108\ Prior to that time, such firms
were within the now-superseded categories of ``Paging'' and ``Cellular
and Other Wireless Telecommunications.'' \109\ Under the present and
prior categories, the SBA has deemed a wireless business to be small if
it has 1,500 or fewer employees.\110\ For the category of Wireless
Telecommunications Carriers (except Satellite), preliminary data for
2007 show that there was 11,927 firms operating that year.\111\ While
the Census Bureau has not released data on the establishments broken
down by number of employees, we note that the Census Bureau lists total
employment for all firms in that sector at 281,262.\112\ Since all
firms with fewer than 1,500 employees are considered small, given the
total employment in the sector, we estimate that the vast majority of
wireless firms are small.
---------------------------------------------------------------------------

\108\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210
Wireless Telecommunications Categories (Except Satellite)''; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
\109\ U.S. Census Bureau, 2002 NAICS Definitions, ``517211
Paging''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.; U.S.
Census Bureau, 2002 NAICS Definitions, ``517212 Cellular and Other
Wireless Telecommunications''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
\110\ 13 CFR 121.201, NAICS code 517210 (2007 NAICS). The now-
superseded, pre-2007 CFR citations were 13 CFR 121.201, NAICS codes
517211 and 517212 (referring to the 2002 NAICS).
\111\ U.S. Census Bureau, 2007 Economic Census, Sector 51,
EC0751I1 Information: Industry Series: Preliminary Summary
Statistics for the United States: 2007, NAICS code 517210 (issued
Oct. 20, 2009), http://factfinder.census.gov/servlet/IBQTable?-fds_name=EC0700A1&-_clearIBQ=Y&-ds_name=EC0751I1&-NAICS2007=51721
(visited Mar. 2, 2011).
\112\ Id.
---------------------------------------------------------------------------

62. Auctions. Initially, we note that, as a general matter, the
number of winning bidders that qualify as small businesses at the close
of an auction does not necessarily represent the number of small
businesses currently in service. Also, the Commission does not
generally track subsequent business size unless, in the context of
assignments or transfers, unjust enrichment issues are implicated.
63. Common Carrier Paging. As noted, the SBA has developed a small
business size standard for Wireless Telecommunications Carriers (except
Satellite) firms within the broad economic census categories of
``Cellular and Other Wireless Telecommunications.'' \113\ Since 2007,
the Census Bureau has placed wireless firms within this new, broad,
economic census category.\114\ Prior to that time, such firms were
within the now-superseded categories of ``Paging'' and ``Cellular and
Other Wireless Telecommunications.'' \115\ Under the present and prior
categories, the SBA has deemed a wireless business to be small if it
has 1,500 or fewer employees.\116\ Because Census Bureau data are not
yet available for the new category, we will estimate small business
prevalence using the prior categories and associated data. For the
category of Paging, data for 2002 show that there were 807 firms that
operated for the entire year.\117\ Of this total, 804 firms had
employment of 999 or fewer employees, and three firms had employment of
1,000 employees or

[[Page 49348]]

more.\118\ For the category of Cellular and Other Wireless
Telecommunications, data for 2002 show that there were 1,397 firms that
operated for the entire year.\119\ Of this total, 1,378 firms had
employment of 999 or fewer employees, and 19 firms had employment of
1,000 employees or more.\120\ Thus, we estimate that the majority of
wireless firms are small.
---------------------------------------------------------------------------

\113\ 13 CFR 121.201, NAICS code 517212.
\114\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210
Wireless Telecommunications Categories (Except Satellite)''; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
\115\ U.S. Census Bureau, 2002 NAICS Definitions, ``517211
Paging''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM,; U.S.
Census Bureau, 2002 NAICS Definitions, ``517212 Cellular and Other
Wireless Telecommunications''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
\116\ 13 CFR 121.201, NAICS code 517210 (2007 NAICS). The now-
superseded, pre-2007 CFR citations were 13 CFR 121.201, NAICS codes
517211 and 517212 (referring to the 2002 NAICS).
\117\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517211 (issued Nov. 2005).
\118\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is for firms with ``1000
employees or more.''
\119\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization,'' Table 5, NAICS code 517212 (issued Nov. 2005).
\120\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is for firms with ``1000
employees or more.''
---------------------------------------------------------------------------

64. In addition, in the Paging Second Report and Order, the
Commission adopted a size standard for ``small businesses'' for
purposes of determining their eligibility for special provisions such
as bidding credits.\121\ A small business is an entity that, together
with its affiliates and controlling principals, has average gross
revenues not exceeding $15 million for the preceding three years.\122\
The SBA has approved this definition.\123\ An initial auction of
Metropolitan Economic Area (``MEA'') licenses was conducted in the year
2000. Of the 2,499 licenses auctioned, 985 were sold.\124\ Fifty-seven
companies claiming small business status won 440 licenses.\125\ A
subsequent auction of MEA and Economic Area (``EA'') licenses was held
in the year 2001. Of the 15,514 licenses auctioned, 5,323 were
sold.\126\ One hundred thirty-two companies claiming small business
status purchased 3,724 licenses. A third auction, consisting of 8,874
licenses in each of 175 EAs and 1,328 licenses in all but three of the
51 MEAs, was held in 2003. Seventy-seven bidders claiming small or very
small business status won 2,093 licenses.\127\
---------------------------------------------------------------------------

\121\ Revision of Part 22 and Part 90 of the Commission's Rules
to Facilitate Future Development of Paging Systems, Second Report
and Order, 12 FCC Rcd 2732, 2811-2812, paras. 178-181 (``Paging
Second Report and Order''); see also Revision of Part 22 and Part 90
of the Commission's Rules to Facilitate Future Development of Paging
Systems, Memorandum Opinion and Order on Reconsideration, 14 FCC Rcd
10030, 10085-10088, paras. 98-107 (1999).
\122\ Paging Second Report and Order, 12 FCC Rcd at 2811, para.
179.
\123\ See Letter from Aida Alvarez, Administrator, SBA, to Amy
Zoslov, Chief, Auctions and Industry Analysis Division, Wireless
Telecommunications Bureau (``WTB''), FCC (Dec. 2, 1998) (``Alvarez
Letter 1998'').
\124\ See ``929 and 931 MHz Paging Auction Closes,'' Public
Notice, 15 FCC Rcd 4858 (WTB 2000).
\125\ See id.
\126\ See ``Lower and Upper Paging Band Auction Closes,'' Public
Notice, 16 FCC Rcd 21821 (WTB 2002).
\127\ See ``Lower and Upper Paging Bands Auction Closes,''
Public Notice, 18 FCC Rcd 11154 (WTB 2003). The current number of
small or very small business entities that hold wireless licenses
may differ significantly from the number of such entities that won
in spectrum auctions due to assignments and transfers of licenses in
the secondary market over time. In addition, some of the same small
business entities may have won licenses in more than one auction.
---------------------------------------------------------------------------

65. Currently, there are approximately 74,000 Common Carrier Paging
licenses. According to the most recent Trends in Telephone Service, 281
carriers reported that they were engaged in the provision of ``paging
and messaging'' services.\128\ Of these, an estimated 279 have 1,500 or
fewer employees and two have more than 1,500 employees.\129\ We
estimate that the majority of common carrier paging providers would
qualify as small entities under the SBA definition.
---------------------------------------------------------------------------

\128\ ``Trends in Telephone Service'' at Table 5.3.
\129\ Id.
---------------------------------------------------------------------------

66. 2.3 GHz Wireless Communications Services. This service can be
used for fixed, mobile, radiolocation, and digital audio broadcasting
satellite uses. The Commission defined ``small business'' for the
wireless communications services (``WCS'') auction as an entity with
average gross revenues of $40 million for each of the three preceding
years, and a ``very small business'' as an entity with average gross
revenues of $15 million for each of the three preceding years.\130\ The
SBA approved these definitions.\131\ The Commission conducted an
auction of geographic area licenses in the WCS service in 1997. In the
auction, seven bidders that qualified as very small business entities
won licenses, and one bidder that qualified as a small business entity
won a license.
---------------------------------------------------------------------------

\130\ Amendment of the Commission's Rules to Establish Part 27,
the Wireless Communications Service (WCS), Report and Order, 12 FCC
Rcd 10785, 10879, para. 194 (1997).
\131\ See Alvarez Letter 1998.
---------------------------------------------------------------------------

67. 1670-1675 MHz Services. This service can be used for fixed and
mobile uses, except aeronautical mobile.\132\ An auction for one
license in the 1670-1675 MHz band was conducted in 2003. The winning
bidder was not a small entity.
---------------------------------------------------------------------------

\132\ 47 CFR 2.106; see generally 47 CFR 27.1-.70.
---------------------------------------------------------------------------

68. Wireless Telephony. Wireless telephony includes cellular,
personal communications services, and specialized mobile radio
telephony carriers. As noted, the SBA has developed a small business
size standard for Wireless Telecommunications Carriers (except
Satellite).\133\ Under the SBA small business size standard, a business
is small if it has 1,500 or fewer employees.\134\ According to Trends
in Telephone Service data, 413 carriers reported that they were engaged
in wireless telephony.\135\ Of these, an estimated 261 have 1,500 or
fewer employees and 152 have more than 1,500 employees.\136\ Therefore,
more than half of these entities can be considered small.
---------------------------------------------------------------------------

\133\ 13 CFR 121.201, NAICS code 517210.
\134\ Id.
\135\ ``Trends in Telephone Service'' at Table 5.3.
\136\ Id.
---------------------------------------------------------------------------

69. Broadband Personal Communications Service. The broadband
personal communications services (``PCS'') spectrum is divided into six
frequency blocks designated A through F, and the Commission has held
auctions for each block. The Commission initially defined a ``small
business'' for C- and F-Block licenses as an entity that has average
gross revenues of $40 million or less in the three previous years.\137\
For Block F licenses, an additional small business size standard for
``very small business'' was added and is defined as an entity that,
together with its affiliates, has average gross revenues of not more
than $15 million for the preceding three years.\138\ These small
business size standards, in the context of broadband PCS auctions, have
been approved by the SBA.\139\ No small businesses within the SBA-
approved small business size standards bid successfully for licenses in
Blocks A and B. There were 90 winning bidders that claimed small
business status in the first two C Block auctions.\140\ A total of 93
bidders that claimed ``small'' and ``very small'' business status won
licenses in the first auction of the D, E, and F Blocks.\141\ In 1999,
the Commission completed a subsequent auction of C, D, E, and F Block
licenses.\142\ Of the 57 winning bidders

[[Page 49349]]

in that auction, 48 claimed small business status and won 277
licenses.\143\
---------------------------------------------------------------------------

\137\ See Amendment of Parts 20 and 24 of the Commission's
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile
Radio Service Spectrum Cap et al., Report and Order, 11 FCC Rcd
7824, 7850-52, paras. 57-60 (1996) (``PCS Report and Order''); see
also 47 CFR 24.720(b).
\138\ See PCS Report and Order, 11 FCC Rcd at 7852, para. 60.
\139\ See Alvarez Letter 1998.
\140\ See Entrepreneurs C Block Auction Closes, Public Notice,
DA 96-716 (1996); Entrepreneurs C Block Reauction Closes, Public
Notice, DA 96-1153 (1996).
\141\ See Broadband PCS, D, E and F Block Auction Closes, Public
Notice, Doc. No. 89838 (released January 14, 1997).
\142\ See C, D, E, and F Block Broadband PCS Auction Closes,
Public Notice, 14 FCC Rcd 6688 (1999). Before Auction No. 22, the
Commission established a very small standard for the C Block to
match the standard used for F Block. Amendment of the Commission's
Rules Regarding Installment Payment Financing for Personal
Communications Services (PCS) Licensees, WT Docket No. 97-82, Fourth
Report and Order, 13 FCC Rcd 15,743, 15,768 para. 46 (1998).
\143\ See C, D, E, and F Block Broadband PCS Auction Closes,
Public Notice, 14 FCC Rcd 6688 (1999).
---------------------------------------------------------------------------

70. In 2001, the Commission completed the auction of 422 C and F
Block Broadband PCS licenses (Auction 35). Of the 35 winning bidders in
that auction, 29 claimed small or very small businesses status.\144\
Subsequent events concerning that Auction, including judicial and
agency determinations, resulted in only a portion of those C and F
Block licenses being available for grant. The Commission completed an
auction of 188 C Block licenses and 21 F Block licenses in 2005. Of the
24 winning bidders in that auction, 16 claimed small business status
and won 156 licenses.\145\ In 2007, the Commission completed an auction
of licenses in the A, C, and F Blocks.\146\ Of the 12 winning bidders
in that auction, five claimed small business status and won 18
licenses.\147\ Most recently, in 2008, the Commission completed the
auction of C, D, E, and F Block Broadband PCS licenses.\148\ Of the
eight winning bidders for Broadband PCS licenses in that auction, six
claimed small business status and won 14 licenses.\149\
---------------------------------------------------------------------------

\144\ See ``C and F Block Broadband PCS Auction Closes; Winning
Bidders Announced,'' Public Notice, 16 FCC Rcd 2339 (2001).
\145\ See ``Broadband PCS Spectrum Auction Closes; Winning
Bidders Announced for Auction No. 58,'' Public Notice, 20 FCC Rcd
3703 (2005).
\146\ See ``Auction of Broadband PCS Spectrum Licenses Closes;
Winning Bidders Announced for Auction No. 71,'' Public Notice, 22
FCC Rcd 9247 (2007).
\147\ Id.
\148\ See Auction of AWS-1 and Broadband PCS Licenses Closes;
Winning Bidders Announced for Auction 78, Public Notice, 23 FCC Rcd
12,749 (2008).
\149\ Id.
---------------------------------------------------------------------------

71. Advanced Wireless Services. In 2006, the Commission conducted
its first auction of Advanced Wireless Services licenses in the 1710-
1755 MHz and 2110-2155 MHz bands (``AWS-1''), designated as Auction
66.\150\ For the AWS-1 bands, the Commission has defined a ``small
business'' as an entity with average annual gross revenues for the
preceding three years not exceeding $40 million, and a ``very small
business'' as an entity with average annual gross revenues for the
preceding three years not exceeding $15 million.\151\ In Auction 66, 31
winning bidders identified themselves as very small businesses and won
142 licenses.\152\ Twenty-six of the winning bidders identified
themselves as small businesses and won 73 licenses.\153\ In a
subsequent 2008 auction, the Commission offered 35 AWS-1 licenses.\154\
Four winning bidders identifying themselves as very small businesses
won 17 licenses, and three winning bidders identifying themselves as a
small business won five AWS-1 licenses.\155\
---------------------------------------------------------------------------

\150\ See Auction of Advanced Wireless Services Licenses
Scheduled for June 29, 2006; Notice and Filing Requirements, Minimum
Opening Bids, Upfront Payments and Other Procedures for Auction No.
66, AU Docket No. 06-30, Public Notice, 21 FCC Rcd 4562 (2006)
(``Auction 66 Procedures Public Notice'').
\151\ See Service Rules for Advanced Wireless Services in the
1.7 GHz and 2.1 GHz Bands, Report and Order, 18 FCC Rcd 25,162, App.
B (2003), modified by Service Rules for Advanced Wireless Services
In the 1.7 GHz and 2.1 GHz Bands, Order on Reconsideration, 20 FCC
Rcd 14,058, App. C (2005).
\152\ See Auction of Advanced Wireless Services Licenses Closes;
Winning Bidders Announced for Auction No. 66, Public Notice, 21 FCC
Rcd 10,521 (2006) (``Auction 66 Closing Public Notice'').
\153\ See id.
\154\ See AWS-1 and Broadband PCS Procedures Public Notice, 23
FCC Rcd at 7499. Auction 78 also included an auction of broadband
PCS licenses.
\155\ See ``Auction of AWS-1 and Broadband PCS Licenses Closes,
Winning Bidders Announced for Auction 78, Down Payments Due
September 9, 2008, FCC Forms 601 and 602 Due September 9, 2008,
Final Payments Due September 23, 2008, Ten-Day Petition to Deny
Period'', Public Notice, 23 FCC Rcd 12749-65 (2008).
---------------------------------------------------------------------------

72. Narrowband Personal Communications Services. In 1994, the
Commission conducted two auctions of Narrowband PCS licenses. For these
auctions, the Commission defined a ``small business'' as an entity with
average annual gross revenues for the preceding three years not
exceeding $40 million.\156\ Through these auctions, the Commission
awarded a total of 41 licenses, 11 of which were obtained by four small
businesses.\157\ To ensure meaningful participation by small business
entities in future auctions, the Commission adopted a two-tiered small
business size standard in the Narrowband PCS Second Report and
Order.\158\ A ``small business'' is an entity that, together with
affiliates and controlling interests, has average gross revenues for
the three preceding years of not more than $40 million.\159\ A ``very
small business'' is an entity that, together with affiliates and
controlling interests, has average gross revenues for the three
preceding years of not more than $15 million.\160\ The SBA has approved
these small business size standards.\161\ A third auction of Narrowband
PCS licenses was conducted in 2001. In that auction, five bidders won
317 (Metropolitan Trading Areas and nationwide) licenses.\162\ Three of
the winning bidders claimed status as a small or very small entity and
won 311 licenses.
---------------------------------------------------------------------------

\156\ Implementation of Section 309(j) of the Communications Act
- Competitive Bidding Narrowband PCS, Third Memorandum Opinion and
Order and Further Notice of Proposed Rulemaking, 10 FCC Rcd 175,
196, para. 46 (1994).
\157\ See ``Announcing the High Bidders in the Auction of ten
Nationwide Narrowband PCS Licenses, Winning Bids Total
$617,006,674,'' Public Notice, PNWL 94-004 (rel. Aug. 2, 1994);
``Announcing the High Bidders in the Auction of 30 Regional
Narrowband PCS Licenses; Winning Bids Total $490,901,787,'' Public
Notice, PNWL 94-27 (released November 9, 1994).
\158\ Amendment of the Commission's Rules to Establish New
Personal Communications Services, Narrowband PCS, Second Report and
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd
10456, 10476, para. 40 (2000) (``Narrowband PCS Second Report and
Order'').
\159\ Narrowband PCS Second Report and Order, 15 FCC Rcd at
10476, para. 40.
\160\ Id.
\161\ See Alvarez Letter 1998.
\162\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16
FCC Rcd 18663 (WTB 2001).
---------------------------------------------------------------------------

73. Lower 700 MHz Band Licenses. The Commission previously adopted
criteria for defining three groups of small businesses for purposes of
determining their eligibility for special provisions such as bidding
credits.\163\ The Commission defined a ``small business'' as an entity
that, together with its affiliates and controlling principals, has
average gross revenues not exceeding $40 million for the preceding
three years.\164\ A ``very small business'' is defined as an entity
that, together with its affiliates and controlling principals, has
average gross revenues that are not more than $15 million for the
preceding three years.\165\ Additionally, the Lower 700 MHz Service had
a third category of small business status for Metropolitan/Rural
Service Area (``MSA/RSA'') licenses--``entrepreneur''--which is defined
as an entity that, together with its affiliates and controlling
principals, has average gross revenues that are not more than $3
million for the preceding three years.\166\ The SBA approved these
small size standards.\167\ An auction of 740 licenses was conducted in
2002 (one license in each of the 734 MSAs/RSAs and one license in each
of the six Economic Area Groupings (EAGs)). Of the 740 licenses
available for auction, 484 licenses were won by 102 winning bidders.
Seventy-two of the winning bidders claimed small business, very small
business, or entrepreneur status and won a total of

[[Page 49350]]

329 licenses.\168\ A second auction commenced on May 28, 2003, closed
on June 13, 2003, and included 256 licenses.\169\ Seventeen winning
bidders claimed small or very small business status and won 60
licenses, and nine winning bidders claimed entrepreneur status and won
154 licenses.\170\ In 2005, the Commission completed an auction of 5
licenses in the lower 700 MHz band (Auction 60). All three winning
bidders claimed small business status.
---------------------------------------------------------------------------

\163\ See Reallocation and Service Rules for the 698-746 MHz
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC
Rcd 1022 (2002) (``Channels 52-59 Report and Order'').
\164\ See Channels 52-59 Report and Order, 17 FCC Rcd at 1087-
88, para. 172.
\165\ See id.
\166\ See id, 17 FCC Rcd at 1088, para. 173.
\167\ See Letter from Aida Alvarez, Administrator, SBA, to
Thomas Sugrue, Chief, WTB, FCC (Aug. 10, 1999) (``Alvarez Letter
1999'').
\168\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice,
17 FCC Rcd 17272 (WTB 2002).
\169\ See Lower 700 MHz Band Auction Closes, Public Notice, 18
FCC Rcd 11,873 (WTB 2003).
\170\ See id.
---------------------------------------------------------------------------

74. In 2007, the Commission reexamined its rules governing the 700
MHz band in the 700 MHz Second Report and Order.\171\ An auction of A,
B and E block licenses in the Lower 700 MHz band was held in 2008.\172\
Twenty winning bidders claimed small business status (those with
attributable average annual gross revenues that exceed $15 million and
do not exceed $40 million for the preceding three years). Thirty three
winning bidders claimed very small business status (those with
attributable average annual gross revenues that do not exceed $15
million for the preceding three years).
---------------------------------------------------------------------------

\171\ Service Rules for the 698-746, 747-762 and 777-792 MHz
Band, WT Docket No. 06-150, Revision of the Commission's Rules to
Ensure Compatibility with Enhanced 911 Emergency Calling Systems, CC
Docket No. 94-102, Section 68.4(a) of the Commission's Rules
Governing Hearing Aid-Compatible Telephone, WT Docket No. 01-309,
Biennial Regulatory Review--Amendment of Parts 1, 22, 24, 27, and 90
to Streamline and Harmonize Various Rules Affecting Wireless Radio
Services, WT Docket No. 03-264, Former Nextel Communications, Inc.
Upper 700 MHz Guard Band Licenses and Revisions to Part 27 of the
Commission's Rules, WT Docket No. 06-169, Implementing a Nationwide,
Broadband Interoperable Public Safety Network in the 700 MHz Band,
PS Docket No. 06-229, Development of Operational, Technical and
Spectrum Requirements for Meeting Federal, State, and Local Public
Safety Communications Requirements Through the Year 2010, WT Docket
No. 96-86, Second Report and Order, 22 FCC Rcd 15289 (2007) (``700
MHz Second Report and Order'').
\172\ See Auction of 700 MHz Band Licenses Closes, Public
Notice, 23 FCC Rcd 4572 (WTB 2008).
---------------------------------------------------------------------------

75. Upper 700 MHz Band Licenses. In the 700 MHz Second Report and
Order, the Commission revised its rules regarding Upper 700 MHz band
licenses.\173\ In 2008, the Commission conducted Auction 73 in which C
and D block licenses in the Upper 700 MHz band were available.\174\
Three winning bidders claimed very small business status (those with
attributable average annual gross revenues that do not exceed $15
million for the preceding three years).
---------------------------------------------------------------------------

\173\ 700 MHz Second Report and Order, 22 FCC Rcd 15,289.
\174\ See Auction of 700 MHz Band Licenses Closes, Public
Notice, 23 FCC Rcd 4572 (2008).
---------------------------------------------------------------------------

76. 700 MHz Guard Band Licenses. In 2000, the Commission adopted
the 700 MHz Guard Band Report and Order, in which it established rules
for the A and B block licenses in the Upper 700 MHz band, including
size standards for ``small businesses'' and ``very small businesses''
for purposes of determining their eligibility for special provisions
such as bidding credits.\175\ A small business in this service is an
entity that, together with its affiliates and controlling principals,
has average gross revenues not exceeding $40 million for the preceding
three years.\176\ Additionally, a very small business is an entity
that, together with its affiliates and controlling principals, has
average gross revenues that are not more than $15 million for the
preceding three years.\177\ SBA approval of these definitions is not
required.\178\ An auction of these licenses was conducted in 2000.\179\
Of the 104 licenses auctioned, 96 licenses were won by nine bidders.
Five of these bidders were small businesses that won a total of 26
licenses. A second auction of 700 MHz Guard Band licenses was held in
2001. All eight of the licenses auctioned were sold to three bidders.
One of these bidders was a small business.\180\
---------------------------------------------------------------------------

\175\ See Service Rules for the 746-764 MHz Bands, and Revisions
to Part 27 of the Commission's Rules, Second Report and Order, 15
FCC Rcd 5299 (2000) (``700 MHz Guard Band Report and Order'').
\176\ See 700 MHz Guard Band Report and Order, 15 FCC Rcd at
5343, para. 108.
\177\ See id.
\178\ See id., 15 FCC Rcd 5299, 5343, para. 108 n.246 (for the
746-764 MHz and 776-794 MHz bands, the Commission is exempt from 15
U.S.C. 632, which requires Federal agencies to obtain SBA approval
before adopting small business size standards).
\179\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
\180\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders
Announced,'' Public Notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------

77. Specialized Mobile Radio. The Commission adopted small business
size standards for the purpose of determining eligibility for bidding
credits in auctions of Specialized Mobile Radio (SMR) geographic area
licenses in the 800 MHz and 900 MHz bands. The Commission defined a
``small business'' as an entity that, together with its affiliates and
controlling principals, has average gross revenues not exceeding $15
million for the preceding three years.\181\ The Commission defined a
``very small business'' as an entity that together with its affiliates
and controlling principals, has average gross revenues not exceeding $3
million for the preceding three years.\182\ The SBA has approved these
small business size standards for both the 800 MHz and 900 MHz SMR
Service.\183\ The first 900 MHz SMR auction was completed in 1996.
Sixty bidders claiming that they qualified as small businesses under
the $15 million size standard won 263 licenses in the 900 MHz SMR band.
In 2004, the Commission held a second auction of 900 MHz SMR licenses
and three winning bidders identifying themselves as very small
businesses won 7 licenses.\184\ The auction of 800 MHz SMR licenses for
the upper 200 channels was conducted in 1997. Ten bidders claiming that
they qualified as small or very small businesses under the $15 million
size standard won 38 licenses for the upper 200 channels.\185\ A second
auction of 800 MHz SMR licenses was conducted in 2002 and included 23
BEA licenses. One bidder claiming small business status won five
licenses.\186\
---------------------------------------------------------------------------

\181\ 47 CFR 90.810, 90.814(b), 90.912.
\182\ 47 CFR 90.810, 90.814(b), 90.912.
\183\ See Alvarez Letter 1999.
\184\ See 900 MHz Specialized Mobile Radio Service Spectrum
Auction Closes: Winning Bidders Announced,'' Public Notice, 19 FCC
Rcd. 3921 (WTB 2004).
\185\ See ``Correction to Public Notice DA 96-586 `FCC Announces
Winning Bidders in the Auction of 1020 Licenses to Provide 900 MHz
SMR in Major Trading Areas,''' Public Notice, 18 FCC Rcd 18367 (WTB
1996).
\186\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------

78. The auction of the 1,053 800 MHz SMR licenses for the General
Category channels was conducted in 2000. Eleven bidders who won 108
licenses for the General Category channels in the 800 MHz SMR band
qualified as small or very small businesses .\187\ In an auction
completed in 2000, a total of 2,800 Economic Area licenses in the lower
80 channels of the 800 MHz SMR service were awarded.\188\ Of the 22
winning bidders, 19 claimed small or very small business status and won
129 licenses. Thus, combining all three auctions, 41 winning bidders
for geographic licenses in the 800 MHz SMR band claimed to be small
businesses.
---------------------------------------------------------------------------

\187\ See ``800 MHz Specialized Mobile Radio (SMR) Service
General Category (851-854 MHz) and Upper Band (861-865 MHz) Auction
Closes; Winning Bidders Announced,'' Public Notice, 15 FCC Rcd 17162
(2000).
\188\ See, ``800 MHz SMR Service Lower 80 Channels Auction
Closes; Winning Bidders Announced,'' Public Notice, 16 FCC Rcd 1736
(2000).
---------------------------------------------------------------------------

79. In addition, there are numerous incumbent site-by-site SMR
licensees and licensees with extended implementation authorizations in
the 800 and 900 MHz bands. We do not know how many firms provide 800
MHz

[[Page 49351]]

or 900 MHz geographic area SMR pursuant to extended implementation
authorizations, nor how many of these providers have annual revenues
not exceeding $15 million. One firm has over $15 million in revenues.
In addition, we do not know how many of these firms have 1500 or fewer
employees.\189\ We assume, for purposes of this analysis, that all of
the remaining existing extended implementation authorizations are held
by small entities, as that small business size standard is approved by
the SBA.
---------------------------------------------------------------------------

\189\ See generally 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

80. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service
has both Phase I and Phase II licenses. Phase I licensing was conducted
by lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized
to operate in the 220 MHz band. The Commission has not developed a
definition of small entities specifically applicable to such incumbent
220 MHz Phase I licensees. To estimate the number of such licensees
that are small businesses, we apply the small business size standard
under the SBA rules applicable to Wireless Telecommunications Carriers
(except Satellite).\190\ This category provides that a small business
is a wireless company employing no more than 1,500 persons.\191\ The
Commission estimates that most such licensees are small businesses
under the SBA's small business standard.
---------------------------------------------------------------------------

\190\ Id.
\191\ Id.
---------------------------------------------------------------------------

81. 220 MHz Radio Service--Phase II Licensees. The 220 MHz service
has both Phase I and Phase II licenses. The Phase II 220 MHz service
licenses are assigned by auction, where mutually exclusive applications
are accepted. In the 220 MHz Third Report and Order, the Commission
adopted small business size standards for defining ``small'' and ``very
small'' businesses for the purpose of determining their eligibility for
special provisions such as bidding credits, which are discounts on
winning bids \192\ that the Commission defined a ``small business'' as
an entity that, together with its affiliates and controlling
principals, has average gross revenues not exceeding $15 million for
the preceding three years.\193\ The Commission defined a ``very small
business'' as an entity that, together with its affiliates and
controlling principals, has average gross revenues that do not exceed
$3 million for the preceding three years.\194\ The SBA has approved
these small size standards.\195\ The first auction of Phase II licenses
was conducted in 1998.\196\ In that auction, 908 licenses were offered
in three different-sized geographic areas: three nationwide licenses,
30 Regional Economic Area Group (``EAG'') Licenses, and 875 Economic
Area (EA) Licenses. Of the 908 licenses auctioned, 693 were sold.\197\
Thirty-nine small or very small businesses won 373 licenses in the
first 220 MHz auction. A second auction in 1999 offered 225 licenses:
216 EA licenses and 9 EAG licenses. Fourteen companies claiming very
small business status won 158 licenses.\198\ A third auction included
four licenses: 2 BEA licenses and 2 EAG licenses in the 220 MHz
Service. No small or very small business won any of these
licenses.\199\ In 2007, the Commission conducted a fourth auction of
the 220 MHz licenses, designated as Auction 72.\200\ Auction 72 offered
94 Phase II 220 MHz Service licenses.\201\ In this auction, five
winning bidders won a total of 76 licenses.\202\ Two winning bidders
that identified themselves as very small businesses won 56 of the 76
licenses. One winning bidder that identified itself as a small business
won 5 licenses.
---------------------------------------------------------------------------

\192\ Amendment of Part 90 of the Commission's Rules to Provide
For the Use of the 220-222 MHz Band by the Private Land Mobile Radio
Service, Third Report and Order, 12 FCC Rcd 10943, 11068-70, paras.
291-295 (1997).
\193\ Id. at 11068, para. 291.
\194\ Id.
\195\ See Letter from Aida Alvarez, Administrator, SBA, to
Daniel Phythyon, Chief, WTB, FCC (Jan. 6, 1998) (``Alvarez to
Phythyon Letter 1998'').
\196\ See generally ``220 MHz Service Auction Closes,'' Public
Notice, 14 FCC Rcd 605 (1998).
\197\ See ``FCC Announces It is Prepared to Grant 654 Phase II
220 MHz Licenses After Final Payment is Made,'' Public Notice, 14
FCC Rcd 1085 (1999).
\198\ See ``Phase II 220 MHz Service Spectrum Auction Closes,''
Public Notice, 14 FCC Rcd 11218 (1999).
\199\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (2002).
\200\ See ``Auction of Phase II 220 MHz Service Spectrum
Scheduled for June 20, 2007, Notice and Filing Requirements, Minimum
Opening Bids, Upfront Payments and Other Procedures for Auction 72,
Public Notice, 22 FCC Rcd 3404 (2007).
\201\ Id.
\202\ See ``Auction of Phase II 220 MHz Service Spectrum
Licenses Closes, Winning Bidders Announced for Auction 72, Down
Payments due July 18, 2007, FCC Forms 601 and 602 due July 18, 2007,
Final Payments due August 1, 2007, Ten-Day Petition to Deny Period,
Public Notice, 22 FCC Rcd 11573 (2007).
---------------------------------------------------------------------------

82. Private Land Mobile Radio (``PLMR''). PLMR systems serve an
essential role in a range of industrial, business, land transportation,
and public safety activities. These radios are used by companies of all
sizes operating in all U.S. business categories, and are often used in
support of the licensee's primary (non-telecommunications) business
operations. For the purpose of determining whether a licensee of a PLMR
system is a small business as defined by the SBA, we use the broad
census category, Wireless Telecommunications Carriers (except
Satellite). This definition provides that a small entity is any such
entity employing no more than 1,500 persons.\203\ The Commission does
not require PLMR licensees to disclose information about number of
employees, so the Commission does not have information that could be
used to determine how many PLMR licensees constitute small entities
under this definition. We note that PLMR licensees generally use the
licensed facilities in support of other business activities, and
therefore, it would also be helpful to assess PLMR licensees under the
standards applied to the particular industry subsector to which the
licensee belongs.\204\
---------------------------------------------------------------------------

\203\ See 13 CFR 121.201, NAICS code 517210.
\204\ See generally 13 CFR 121.201.
---------------------------------------------------------------------------

83. As of March 2010, there were 424,162 PLMR licensees operating
921,909 transmitters in the PLMR bands below 512 MHz. We note that any
entity engaged in a commercial activity is eligible to hold a PLMR
license, and that any revised rules in this context could therefore
potentially impact small entities covering a great variety of
industries.
84. Fixed Microwave Services. Fixed microwave services include
common carrier,\205\ private operational-fixed,\206\ and broadcast
auxiliary radio services.\207\ At present, there are approximately
22,015 common carrier fixed licensees and 61,670 private operational-
fixed licensees and broadcast auxiliary radio licensees in the
microwave services. The Commission has not created a size standard for
a small business specifically with respect to fixed

[[Page 49352]]

microwave services. For purposes of this analysis, the Commission uses
the SBA small business size standard for the category Wireless
Telecommunications Carriers (except Satellite), which is 1,500 or fewer
employees.\208\ The Commission does not have data specifying the number
of these licensees that have no more than 1,500 employees, and thus are
unable at this time to estimate with greater precision the number of
fixed microwave service licensees that would qualify as small business
concerns under the SBA's small business size standard. Consequently,
the Commission estimates that there are 22,015 or fewer common carrier
fixed licensees and 61,670 or fewer private operational-fixed licensees
and broadcast auxiliary radio licensees in the microwave services that
may be small and may be affected by the rules and policies proposed
herein. We note, however, that the common carrier microwave fixed
licensee category includes some large entities.
---------------------------------------------------------------------------

\205\ See 47 CFR 101 et seq. for common carrier fixed microwave
services (except Multipoint Distribution Service).
\206\ Persons eligible under parts 80 and 90 of the Commission's
rules can use Private Operational-Fixed Microwave services. See 47
CFR Parts 80 and 90. Stations in this service are called
operational-fixed to distinguish them from common carrier and public
fixed stations. Only the licensee may use the operational-fixed
station, and only for communications related to the licensee's
commercial, industrial, or safety operations.
\207\ Auxiliary Microwave Service is governed by Part 74 of
Title 47 of the Commission's rules. See 47 CFR Part 74. This service
is available to licensees of broadcast stations and to broadcast and
cable network entities. Broadcast auxiliary microwave stations are
used for relaying broadcast television signals from the studio to
the transmitter, or between two points such as a main studio and an
auxiliary studio. The service also includes mobile television
pickups, which relay signals from a remote location back to the
studio.
\208\ 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

85. 39 GHz Service. The Commission adopted small business size
standards for 39 GHz licenses. A ``small business'' is defined as an
entity that, together with its affiliates and controlling principals,
has average gross revenues not exceeding $40 million in the preceding
three years.\209\ A ``very small business'' is defined as an entity
that, together with its affiliates and controlling principals, has
average gross revenues of not more than $15 million for the preceding
three years.\210\ The SBA has approved these small business size
standards.\211\ In 2000, the Commission conducted an auction of 2,173,
39 GHz licenses. A total of 18 bidders who claimed small or very small
business status won 849 licenses.
---------------------------------------------------------------------------

\209\ See Amendment of the Commission's Rules Regarding the
37.0-38.6 GHz and 38.6-40.0 GHz Bands, ET Docket No. 95-183, Report
and Order, 12 FCC Rcd 18600 (1997).
\210\ Id.
\211\ See Letter from Aida Alvarez, Administrator, SBA, to
Kathleen O'Brien Ham, Chief, Auctions and Industry Analysis
Division, WTB, FCC (Feb. 4, 1998); see Letter from Hector Barreto,
Administrator, SBA, to Margaret Wiener, Chief, Auctions and Industry
Analysis Division, WTB, FCC (January 18, 2002).
---------------------------------------------------------------------------

86. Local Multipoint Distribution Service. Local Multipoint
Distribution Service (``LMDS'') is a fixed broadband point-to-
multipoint microwave service that provides for two-way video
telecommunications.\212\ The Commission established small business size
standards for LMDS licenses. It defined a ``small business'' as an
entity that has average gross revenues of not more than $40 million in
the three preceding years and defined a ``very small business'' as an
entity that, together with its affiliates, has average gross revenues
of not more than $15 million for the three preceding years.\213\ The
SBA approved these small business size standards for auctions of LMDS
licenses.\214\ In 1998, an auction of 986 LMDS licenses was conducted.
A total of 93 winning bidders that qualified as small or very small
businesses won approximately 664 licenses. In 1999, the Commission
conducted an auction of 161 LMDS licenses. and in this auction, 32
small and very small businesses won 119 licenses.
---------------------------------------------------------------------------

\212\ See Rulemaking to Amend Parts 1, 2, 21, 25, of the
Commission's Rules to Redesignate the 27.5-29.5 GHz Frequency Band,
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and
Policies for Local Multipoint Distribution Service and for Fixed
Satellite Services, Second Report and Order, Order on
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC
Rcd 12545, 12689-90, para. 348 (1997) (``LMDS Second Report and
Order'').
\213\ See LMDS Second Report and Order, 12 FCC Rcd at 12689-90,
para. 348.
\214\ See Alvarez to Phythyon Letter 1998.
---------------------------------------------------------------------------

87. 218-219 MHz Service. The first auction of 218-219 MHz Service
(previously referred to as the Interactive and Video Data Service or
IVDS) licenses resulted in 178 entities winning licenses for 594
Metropolitan Statistical Areas (``MSAs'').\215\ Of the 594 licenses,
567 were won by 167 entities qualifying as a small business. For that
auction, the Commission defined a small business as an entity that,
together with its affiliates, has no more than a $6 million net worth
and, after Federal income taxes (excluding any carry over losses), has
no more than $2 million in annual profits each year for the previous
two years.\216\ In the 218-219 MHz Report and Order and Memorandum
Opinion and Order, the Commission revised its small business size
standards for the 218-219 MHz Service and defined a small business as
an entity that, together with its affiliates and persons or entities
that hold interests in such an entity and their affiliates, has average
annual gross revenues not exceeding $15 million for the preceding three
years.\217\ The Commission defined a very small business as an entity
that, together with its affiliates and persons or entities that hold
interests in such an entity and its affiliates, has average annual
gross revenues not exceeding $3 million for the preceding three
years.\218\ The SBA has approved these definitions.\219\
---------------------------------------------------------------------------

\215\ See ``Interactive Video and Data Service (IVDS)
Applications Accepted for Filing,'' Public Notice, 9 FCC Rcd 6227
(1994).
\216\ Implementation of Section 309(j) of the Communications
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330
(1994).
\217\ Amendment of Part 95 of the Commission's Rules to Provide
Regulatory Flexibility in the 218-219 MHz Service, Report and Order
and Memorandum Opinion and Order, 15 FCC Rcd 1497 (1999).
\218\ Id.
\219\ See Alvarez to Phythyon Letter 1998.
---------------------------------------------------------------------------

88. Location and Monitoring Service (``LMS''). Multilateration LMS
systems use non-voice radio techniques to determine the location and
status of mobile radio units. For auctions of LMS licenses, the
Commission has defined a ``small business'' as an entity that, together
with controlling interests and affiliates, has average annual gross
revenues for the preceding three years not exceeding $15 million.\220\
A ``very small business'' is defined as an entity that, together with
controlling interests and affiliates, has average annual gross revenues
for the preceding three years not exceeding $3 million.\221\ These
definitions have been approved by the SBA.\222\ An auction of LMS
licenses was conducted in 1999. Of the 528 licenses auctioned, 289
licenses were sold to four small businesses.
---------------------------------------------------------------------------

\220\ Amendment of Part 90 of the Commission's Rules to Adopt
Regulations for Automatic Vehicle Monitoring Systems, Second Report
and Order, 13 FCC Rcd 15182, 15192, para. 20 (1998) (``Automatic
Vehicle Monitoring Systems Second Report and Order''); see also 47
CFR 90.1103.
\221\ Automatic Vehicle Monitoring Systems Second Report and
Order, 13 FCC Rcd at 15192, para. 20; see also 47 CFR 90.1103.
\222\ See Alvarez Letter 1998.
---------------------------------------------------------------------------

89. Rural Radiotelephone Service. The Commission has not adopted a
size standard for small businesses specific to the Rural Radiotelephone
Service.\223\ A significant subset of the Rural Radiotelephone Service
is the Basic Exchange Telephone Radio System (``BETRS'').\224\ In the
present context, we will use the SBA's small business size standard
applicable to Wireless Telecommunications Carriers (except Satellite),
i.e., an entity employing no more than 1,500 persons.\225\ There are
approximately 1,000 licensees in the Rural Radiotelephone Service, and
the Commission estimates that there are 1,000 or fewer small entity
licensees in the Rural Radiotelephone Service that may be affected by
our action.
---------------------------------------------------------------------------

\223\ The service is defined in section 22.99 of the
Commission's rules, 47 CFR 22.99.
\224\ BETRS is defined in sections 22.757 and 22.759 of the
Commission's rules, 47 CFR 22.757 and 22.759.
\225\ 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

90. Air-Ground Radiotelephone Service.\226\ The Commission has
previously used the SBA's small business definition applicable to
Wireless Telecommunications Carriers (except Satellite), i.e., an
entity employing no more than 1,500

[[Page 49353]]

persons.\227\ There are approximately 100 licensees in the Air-Ground
Radiotelephone Service, and under that definition, we estimate that
almost all of them qualify as small entities under the SBA definition.
For purposes of assigning Air-Ground Radiotelephone Service licenses
through competitive bidding, the Commission has defined ``small
business'' as an entity that, together with controlling interests and
affiliates, has average annual gross revenues for the preceding three
years not exceeding $40 million.\228\ A ``very small business'' is
defined as an entity that, together with controlling interests and
affiliates, has average annual gross revenues for the preceding three
years not exceeding $15 million.\229\ These definitions were approved
by the SBA.\230\ In 2006, the Commission completed an auction of
nationwide commercial Air-Ground Radiotelephone Service licenses in the
800 MHz band (Auction 65). The auction closed with two winning bidders
winning two Air-Ground Radiotelephone Services licenses. Neither of the
winning bidders claimed small business status.
---------------------------------------------------------------------------

\226\ The service is defined in section 22.99 of the
Commission's rules, 47 CFR 22.99.
\227\ 13 CFR 121.201, NAICS codes 517210.
\228\ Amendment of Part 22 of the Commission's Rules to Benefit
the Consumers of Air-Ground Telecommunications Services, Biennial
Regulatory Review--Amendment of Parts 1, 22, and 90 of the
Commission's Rules, Amendment of Parts 1 and 22 of the Commission's
Rules to Adopt Competitive Bidding Rules for Commercial and General
Aviation Air-Ground Radiotelephone Service, WT Docket Nos. 03-103
and 05-42, Order on Reconsideration and Report and Order, 20 FCC Rcd
19663, paras. 28-42 (2005).
\229\ Id.
\230\ See Letter from Hector V. Barreto, Administrator, SBA, to
Gary D. Michaels, Deputy Chief, Auctions and Spectrum Access
Division, WTB, FCC (Sept. 19, 2005).
---------------------------------------------------------------------------

91. Aviation and Marine Radio Services. There are approximately
26,162 aviation, 34,555 marine (ship), and 3,296 marine (coast)
licensees.\231\ The Commission has not developed a small business size
standard specifically applicable to all licensees. For purposes of this
analysis, we will use the SBA small business size standard for the
category Wireless Telecommunications Carriers (except Satellite), which
is 1,500 or fewer employees.\232\ We are unable to determine how many
of those licensed fall under this standard. For purposes of our
evaluations in this analysis, we estimate that there are up to
approximately 62,969 licensees that are small businesses under the SBA
standard.\233\ In 1998, the Commission held an auction of 42 VHF Public
Coast licenses in the 157.1875-157.4500 MHz (ship transmit) and
161.775-162.0125 MHz (coast transmit) bands. For VHF Public Coast
licenses, the Commission defined a ``small'' business as an entity
that, together with controlling interests and affiliates, has average
gross revenues for the preceding three years not exceeding $15 million
dollars. In addition, it defined a ``very small'' business as one that,
together with controlling interests and affiliates, has average gross
revenues for the preceding three years not exceeding $3 million
dollars.\234\ The Commission also made available Automated Maritime
Telecommunications System (``AMTS'') licenses in Auctions 57 and
61.\235\ Winning bidders could claim status as a very small business or
a very small business. For AMTS, the Commission defined a very small
business as an entity with attributed average annual gross revenues
that do not exceed $3 million for the preceding three years, and
defined a small business as an entity with attributed average annual
gross revenues not exceeding $15 million for the preceding three
years.\236\ Three of the winning bidders in Auction 57 qualified as
small or very small businesses, and three winning bidders in Auction 61
qualified as very small businesses.
---------------------------------------------------------------------------

\231\ Vessels that are not required by law to carry a radio and
do not make international voyages or communications are not required
to obtain an individual license. See Amendment of Parts 80 and 87 of
the Commission's rules to Permit Operation of Certain Domestic Ship
and Aircraft Radio Stations Without Individual Licenses, Report and
Order, WT Docket No. 96-82, 11 FCC Rcd 14849 (1996).
\232\ 13 CFR 121.201, NAICS code 517210.
\233\ A licensee may have a license in more than one category.
\234\ Amendment of the Commission's Rules Concerning Maritime
Communications, PR Docket No. 92-257, Third Report and Order and
Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998).
\235\ See ``Automated Maritime Telecommunications System
Spectrum Auction Scheduled for September 15, 2004, Notice and Filing
Requirements, Minimum Opening Bids, Upfront Payments and Other
Auction Procedures,'' Public Notice, 19 FCC Rcd 9518 (WTB 2004);
``Auction of Automated Maritime Telecommunications System Licenses
Scheduled for August 3, 2005, Notice and Filing Requirements,
Minimum Opening Bids, Upfront Payments and Other Auction Procedures
for Auction No. 61,'' Public Notice, 20 FCC Rcd 7811 (WTB 2005).
\236\ 47 CFR 80.1252.
---------------------------------------------------------------------------

92. Offshore Radiotelephone Service. This service operates on
several ultra high frequencies (``UHF'') television broadcast channels
that are not used for television broadcasting in the coastal areas of
states bordering the Gulf of Mexico.\237\ There is presently 1 licensee
in this service. We do not have information whether that licensee would
qualify as small under the SBA's small business size standard for
Wireless Telecommunications Carriers (except Satellite) services.\238\
Under that SBA small business size standard, a business is small if it
has 1,500 or fewer employees.\239\
---------------------------------------------------------------------------

\237\ This service is governed by Subpart I of Part 22 of the
Commission's rules. See 47 CFR 22.1001-22.1037.
\238\ 13 CFR 121.201, NAICS code 517210.
\239\ Id.
---------------------------------------------------------------------------

93. Multiple Address Systems (``MAS''). Entities using MAS
spectrum, in general, fall into two categories: (1) Those using the
spectrum for profit-based uses, and (2) those using the spectrum for
private internal uses. The Commission defines a small business for MAS
licenses as an entity that has average gross revenues of less than $15
million in the preceding three calendar years.\240\ A very small
business is defined as an entity that, together with its affiliates,
has average gross revenues of not more than $3 million for the
preceding three calendar years.\241\ The SBA has approved these
definitions.\242\ The majority of these entities will most likely be
licensed in bands where the Commission has implemented a geographic
area licensing approach that would require the use of competitive
bidding procedures to resolve mutually exclusive applications. The
Commission's licensing database indicates that, as of March 5, 2010,
there were over 11,500 MAS station authorizations. In 2001, an auction
of 5,104 MAS licenses in 176 EAs was conducted in 2001.\243\ Seven
winning bidders claimed status as small or very small businesses and
won 611 licenses. In 2005, the Commission completed an auction (Auction
59) of 4,226 MAS licenses in the Fixed Microwave Services from the 928/
959 and 932/941 MHz bands. Twenty-six winning bidders won a total of
2,323 licenses. Of the 26 winning bidders in this auction, five claimed
small business status and won 1,891 licenses.
---------------------------------------------------------------------------

\240\ See Amendment of the Commission's Rules Regarding Multiple
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, para.
123 (2000).
\241\ Id.
\242\ See Alvarez Letter 1999.
\243\ See ``Multiple Address Systems Spectrum Auction Closes,''
Public Notice, 16 FCC Rcd 21011 (2001).
---------------------------------------------------------------------------

94. With respect to entities that use, or seek to use, MAS spectrum
to accommodate internal communications needs, we note that MAS serves
an essential role in a range of industrial, safety, business, and land
transportation activities. MAS radios are used by companies of all
sizes, operating in virtually all U.S. business categories, and by all
types of public safety entities. For the majority of private internal
users, the small business size standard developed by the SBA would be
more appropriate. The applicable size

[[Page 49354]]

standard in this instance appears to be that of Wireless
Telecommunications Carriers (except Satellite). This definition
provides that a small entity is any such entity employing no more than
1,500 persons.\244\The Commission's licensing database indicates that,
as of January 20, 1999, of the 8,670 total MAS station authorizations,
8,410 authorizations were for private radio service, and of these,
1,433 were for private land mobile radio service.
---------------------------------------------------------------------------

\244\ See 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

95. 1.4 GHz Band Licensees. The Commission conducted an auction of
64 1.4 GHz band licenses in the paired 1392-1395 MHz and 1432-1435 MHz
bands, and in the unpaired 1390-1392 MHz band in 2007.\245\ For these
licenses, the Commission defined ``small business'' as an entity that,
together with its affiliates and controlling interests, had average
gross revenues not exceeding $40 million for the preceding three years,
and a ``very small business'' as an entity that, together with its
affiliates and controlling interests, has had average annual gross
revenues not exceeding $15 million for the preceding three years.\246\
Neither of the two winning bidders claimed small business status.\247\
---------------------------------------------------------------------------

\245\ See ``Auction of 1.4 GHz Bands Licenses Scheduled for
February 7, 2007,'' Public Notice, 21 FCC Rcd 12393 (WTB 2006);
``Auction of 1.4 GHz Band Licenses Closes; Winning Bidders Announced
for Auction No. 69,'' Public Notice, 22 FCC Rcd 4714 (2007)
(``Auction No. 69 Closing PN'').
\246\ Auction No. 69 Closing PN, Attachment C.
\247\ See Auction No. 69 Closing PN.
---------------------------------------------------------------------------

96. Incumbent 24 GHz Licensees. This analysis may affect incumbent
licensees who were relocated to the 24 GHz band from the 18 GHz band,
and applicants who wish to provide services in the 24 GHz band. The
applicable SBA small business size standard is that of Wireless
Telecommunications Carriers (except Satellite). This category provides
that such a company is small if it employs no more than 1,500
persons.\248\ The broader census data notwithstanding, we believe that
there are only two licensees in the 24 GHz band that were relocated
from the 18 GHz band, Teligent \249\ and TRW, Inc. It is our
understanding that Teligent and its related companies have fewer than
1,500 employees, though this may change in the future. TRW is not a
small entity.
---------------------------------------------------------------------------

\248\ 13 CFR 121.201, NAICS code 517210.
\249\ Teligent acquired the DEMS licenses of FirstMark, the only
licensee other than TRW in the 24 GHz band whose license has been
modified to require relocation to the 24 GHz band.
---------------------------------------------------------------------------

97. Future 24 GHz Licensees. With respect to new applicants for
licenses in the 24 GHz band, for the purpose of determining eligibility
for bidding credits, the Commission established three small business
definitions. An ``entrrpreneur'' is defined as an entity that, together
with controlling interests and affiliates, has average annual gross
revenues for the three preceding years not exceeding $40 million.\250\
A ``small business'' is defined as an entity that, together with
controlling interests and affiliates, has average annual gross revenues
for the three preceding years not exceeding $15 million.\251\ A ``very
small business'' in the 24 GHz band is defined as an entity that,
together with controlling interests and affiliates, has average gross
revenues not exceeding $3 million for the preceding three years.\252\
The SBA has approved these definitions.\253\ In a 2004 auction of 24
GHz licenses, three winning bidders won seven licenses. Two of the
winning bidders were very small businesses that won five licenses.
---------------------------------------------------------------------------

\250\ Amendments to Parts 1, 2, 87 and 101 of the Commission's
Rules To License Fixed Services at 24 GHz, Report and Order, 15 FCC
Rcd 16934, 16967 para. 77 (2000) (``24 GHz Report and Order''); see
also 47 CFR 101.538(a)(3).
\251\ 24 GHz Report and Order, 15 FCC Rcd at 16967 para. 77; see
also 47 CFR 101.538(a)(2).
\252\ 24 GHz Report and Order, 15 FCC Rcd at 16967 para. 77; see
also 47 CFR 101.538(a)(1).
\253\ See Letter from Gary M. Jackson, Assistant Administrator,
SBA, to Margaret W. Wiener, Deputy Chief, Auctions and Industry
Analysis Division, WTB, FCC (July 28, 2000).
---------------------------------------------------------------------------

98. Broadband Radio Service and Educational Broadband Service.
Broadband Radio Service systems, previously referred to as Multipoint
Distribution Service (``MDS'') and Multichannel Multipoint Distribution
Service (``MMDS'') systems, and ``wireless cable,'' transmit video
programming to subscribers and provide two-way high speed data
operations using the microwave frequencies of the Broadband Radio
Service (``BRS'') and Educational Broadband Service (``EBS'')
(previously referred to as the Instructional Television Fixed Service
(``ITFS'')).\254\ In connection with the 1996 BRS auction, the
Commission established a size standard that defined a ``small
business'' as an entity that had annual average gross revenues of no
more than $40 million in the preceding three years.\255\ The BRS
auctions resulted in 67 successful bidders obtaining licensing
opportunities for 493 Basic Trading Areas (``BTAs''). Of the 67 winning
bidders, 61 met the definition of a small business. At this time, we
estimate that of the 61 small businesses that won BRS licenses in the
1996 auction, 48 remain small business licensees. BRS also includes
licensees of stations authorized prior to the 1996 auction. In addition
to the 48 small businesses that hold BTA authorizations, there are
approximately 392 incumbent BRS licensees that are considered small
entities.\256\ In 2008, the Commission adopted three small business
definitions for BRS, for the purpose of determining eligibility for
bidding credits. A ``small business'' is defined as an entity with
attributed average annual gross revenues that do not exceed $40 million
for the preceding three years. A ``very small business'' is defined as
an entity with attributed average annual gross revenues that do not
exceed $15 million for the preceding three years. An ``entrepreneur''
is defined as an entity with attributed average annual gross revenues
that do not exceed $3 million for the preceding three years.\257\ In
2009, the Commission conducted Auction 86, which offered 78 BRS
licenses.\258\ Auction 86 concluded with the sale of 61 licenses.\259\
Of the ten winning bidders, three bidders that claimed small business
status won 7 licenses, and two bidders that claimed entrepreneur status
won six licenses. After adding the number of small businesses that won
licenses in the Commission's BRS auctions to the approximately 392
incumbent BRS licensees who are considered small entities, we estimate
that there are currently approximately 445 BRS licensees that are
defined as small businesses under either the SBA or the Commission's
rules.
---------------------------------------------------------------------------

\254\ Amendment of Parts 21 and 74 of the Commission's Rules
with Regard to Filing Procedures in the Multipoint Distribution
Service and in the Instructional Television Fixed Service and
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, MM Docket No. 94-131 and PP Docket No. 93-253,
Report and Order, 10 FCC Rcd 9589, 9593, para. 7 (1995) (``MDS
Auction R&O'').
\255\ 47 CFR 21.961(b)(1).
\256\ 47 U.S.C. 309(j). Hundreds of stations were licensed to
incumbent MDS licensees prior to implementation of Section 309(j) of
the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business
size standard.
\257\ Amendment of Parts 1, 21, 73, 74 and 101 of the
Commission's Rules to Facilitate the Provision of Fixed and Mobile
Broadband Access, Educational and Other Advanced Services in the
2150-2162 and 2500-2690 MHz Bands, WT Docket No. 03-66, Fourth
Memorandum Opinion and Order and Second Further Notice of Proposed
Rulemaking, 23 FCC Rcd 5992, 6007 para. 28 (2008) (``BRS/EBS 4th
MO&O & 2nd FNPRM'').
\258\ Auction of Broadband Radio Service (BRS) Licenses,
Scheduled for October 27, 2009, Notice and Filing Requirements,
Minimum Opening Bids, Upfront Payments, and Other Procedures for
Auction 86, Public Notice, 24 FCC Rcd 8277 (2009).
\259\ Auction of Broadband Radio Service Licenses Closes,
Winning Bidders Announced for Auction 86, Down Payments Due November
23, 2009, Final Payments Due December 8, 2009, Ten-Day Petition to
Deny Period, Public Notice, 24 FCC Rcd 13572 (2009).
---------------------------------------------------------------------------

99. In addition, the SBA's Cable Television Distribution Services
small

[[Page 49355]]

business size standard is applicable to EBS. There are presently 2,032
EBS licensees. All but 100 of these licenses are held by educational
institutions. Educational institutions are included in this analysis as
small entities.\260\ Thus, we estimate that at least 1,932 licensees
are small businesses. Since 2007, Cable Television Distribution
Services have been defined within the broad economic census category of
Wired Telecommunications Carriers; that category is defined as follows:
``This 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 a combination of
technologies.'' \261\ The SBA has developed a small business size
standard for this category, which is: All such firms having 1,500 or
fewer employees. To gauge small business prevalence for these cable
services we must, however, use current census data that are based on
the previous category of Cable and Other Program Distribution and its
associated size standard; that size standard was: All such firms having
$13.5 million or less in annual receipts.\262\ According to Census
Bureau data for 2002, there were a total of 1,191 firms in this
previous category that operated for the entire year.\263\ Of this
total, 1,087 firms had annual receipts of under $10 million, and 43
firms had receipts of $10 million or more but less than $25
million.\264\ Thus, the majority of these firms can be considered
small.
---------------------------------------------------------------------------

\260\ The term ``small entity'' within SBREFA applies to small
organizations (nonprofits) and to small governmental jurisdictions
(cities, counties, towns, townships, villages, school districts, and
special districts with populations of less than 50,000). 5 U.S.C.
601(4)-(6). We do not collect annual revenue data on EBS licensees.
\261\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\262\ 13 CFR 121.201, NAICS code 517110.
\263\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510 (issued November 2005).
\264\ Id. An additional 61 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------

100. 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.'' \265\ The SBA has created the
following small business size standard for Television Broadcasting
firms: Those having $14 million or less in annual receipts.\266\ The
Commission has estimated the number of licensed commercial television
stations to be 1,392.\267\ In addition, according to Commission staff
review of the BIA Publications, Inc., Master Access Television Analyzer
Database (BIA) on March 30, 2007, about 986 of an estimated 1,395
commercial television stations (or approximately 72 percent) had
revenues of $13 million or less.\268\ We therefore estimate that the
majority of commercial television broadcasters are small entities.
---------------------------------------------------------------------------

\265\ U.S. Census Bureau, 2007 NAICS Definitions, ``515120
Television Broadcasting'' (partial definition); http://www.census.gov/naics/2007/def/ND515120.HTM#N515120.
\266\ 13 CFR 121.201, NAICS code 515120 (updated for inflation
in 2008).
\267\ See FCC News Release, ``Broadcast Station Totals as of
September 30, 2010,'' dated October 22, 2010; http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
\268\ We recognize that BIA's estimate differs slightly from the
FCC total given supra.
---------------------------------------------------------------------------

101. We note, however, that in assessing whether a business concern
qualifies as small under the above definition, business (control)
affiliations \269\ 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.
---------------------------------------------------------------------------

\269\ ``[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).
---------------------------------------------------------------------------

102. In addition, the Commission has estimated the number of
licensed noncommercial educational (NCE) television stations to be
391.\270\ These stations are non-profit, and therefore considered to be
small entities.\271\
---------------------------------------------------------------------------

\270\ See FCC News Release, ``Broadcast Station Totals as of
September 30, 2010,'' dated October 22, 2010; http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
\271\ See generally 5 U.S.C. 601(4), (6).
---------------------------------------------------------------------------

103. In addition, there are also 2,387 low power television
stations (LPTV).\272\ Given the nature of this service, we will presume
that all LPTV licensees qualify as small entities under the above SBA
small business size standard.
---------------------------------------------------------------------------

\272\ See FCC News Release, ``Broadcast Station Totals as of
September 30, 2010,'' dated October 22, 2010; http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
---------------------------------------------------------------------------

104. Radio Broadcasting. This Economic Census category ``comprises
establishments primarily engaged in broadcasting aural programs by
radio to the public. Programming may originate in their own studio,
from an affiliated network, or from external sources.'' \273\ The SBA
has established a small business size standard for this category, which
is: such firms having $7 million or less in annual receipts.\274\
According to Commission staff review of BIA Publications, Inc.'s Master
Access Radio Analyzer Database on March 31, 2005, about 10,840 (95%) of
11,410 commercial radio stations had revenues of $6 million or less.
Therefore, the majority of such entities are small entities.
---------------------------------------------------------------------------

\273\ U.S. Census Bureau, 2007 NAICS Definitions, ``515112 Radio
Stations''; http://www.census.gov/naics/2007/def/ND515112.HTM#N515112.
\274\ 13 CFR 121.201, NAICS code 515112 (updated for inflation
in 2008).
---------------------------------------------------------------------------

105. We note, however, that in assessing whether a business concern
qualifies as small under the above size standard, business affiliations
must be included.\275\ In addition, to be determined to be a ``small
business,'' the entity may not be dominant in its field of
operation.\276\ We note that it is difficult at times to assess these
criteria in the context of media entities, and our estimate of small
businesses may therefore be over-inclusive.
---------------------------------------------------------------------------

\275\ ``Concerns and entities are affiliates of each other when
one controls or has the power to control the other, or a third party
or parties controls or has the power to control both. It does not
matter whether control is exercised, so long as the power to control
exists.'' 13 CFR 121.103(a)(1) (an SBA regulation).
\276\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------

106. Auxiliary, Special Broadcast and Other Program Distribution
Services. This service involves a variety of transmitters, generally
used to relay broadcast programming to the public (through translator
and booster stations) or within the program distribution chain (from a
remote news gathering unit back to the station). The Commission has not
developed a definition of small entities applicable to broadcast
auxiliary licensees. The applicable definitions of small entities are
those, noted previously, under the SBA rules

[[Page 49356]]

applicable to radio broadcasting stations and television broadcasting
stations.\277\
---------------------------------------------------------------------------

\277\ 13 CFR 121.201, NAICS codes 515112 and 515120.
---------------------------------------------------------------------------

107. The Commission estimates that there are approximately 5,618 FM
translators and boosters.\278\ The Commission does not collect
financial information on any broadcast facility, and the Department of
Commerce does not collect financial information on these auxiliary
broadcast facilities. We believe that most, if not all, of these
auxiliary facilities could be classified as small businesses by
themselves. We also recognize that most commercial translators and
boosters are owned by a parent station which, in some cases, would be
covered by the revenue definition of small business entity discussed
above. These stations would likely have annual revenues that exceed the
SBA maximum to be designated as a small business ($7.0 million for a
radio station or $14.0 million for a TV station). Furthermore, they do
not meet the Small Business Act's definition of a ``small business
concern'' because they are not independently owned and operated. \279\
---------------------------------------------------------------------------

\278\ See supra note 294.
\279\ See 15 U.S.C. 632.
---------------------------------------------------------------------------

108. Cable Television Distribution Services. Since 2007, these
services have been defined within the broad economic census category of
Wired Telecommunications Carriers; that category is defined as follows:
``This 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 a combination of
technologies.'' \280\ The SBA has developed a small business size
standard for this category, which is: all such firms having 1,500 or
fewer employees. To gauge small business prevalence for these cable
services we must, however, use current census data that are based on
the previous category of Cable and Other Program Distribution and its
associated size standard; that size standard was: all such firms having
$13.5 million or less in annual receipts.\281\ According to Census
Bureau data for 2002, there were a total of 1,191 firms in this
previous category that operated for the entire year.\282\ Of this
total, 1,087 firms had annual receipts of under $10 million, and 43
firms had receipts of $10 million or more but less than $25
million.\283\ Thus, the majority of these firms can be considered
small.
---------------------------------------------------------------------------

\280\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\281\ 13 CFR 121.201, NAICS code 517110.
\282\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510 (issued November 2005).
\283\ Id. An additional 61 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------

109. Cable Companies and Systems. The Commission has also 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.\284\ Industry
data indicate that, of 1,076 cable operators nationwide, all but eleven
are small under this size standard.\285\ In addition, under the
Commission's rules, a ``small system'' is a cable system serving 15,000
or fewer subscribers.\286\ Industry data indicate that, of 6,635
systems nationwide, 5,802 systems have under 10,000 subscribers, and an
additional 302 systems have 10,000-19,999 subscribers.\287\ Thus, under
this second size standard, most cable systems are small.
---------------------------------------------------------------------------

\284\ 47 CFR 76.901(e). The Commission determined that this size
standard equates approximately to a size standard of $100 million or
less in annual revenues. Implementation of Sections of the 1992
Cable Act: Rate Regulation, Sixth Report and Order and Eleventh
Order on Reconsideration, 10 FCC Rcd 7393, 7408 (1995).
\285\ These data are derived from: R.R. Bowker, Broadcasting &
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8
& C-2 (data current as of June 30, 2005); Warren Communications
News, Television & Cable Factbook 2006, ``Ownership of Cable Systems
in the United States,'' pages D-1805 to D-1857.
\286\ 47 CFR 76.901(c).
\287\ Warren Communications News, Television & Cable Factbook
2008, ``U.S. Cable Systems by Subscriber Size,'' page F-2 (data
current as of Oct. 2007). The data do not include 851 systems for
which classifying data were not available.
---------------------------------------------------------------------------

110. Cable System Operators. The Communications Act of 1934, as
amended, 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.'' \288\ The Commission has determined that an operator
serving fewer than 677,000 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.\289\ Industry data indicate that, of 1,076 cable operators
nationwide, all but ten are small under this size standard.\290\ We
note that the Commission neither requests nor collects information on
whether cable system operators are affiliated with entities whose gross
annual revenues exceed $250 million,\291\ and therefore we are unable
to estimate more accurately the number of cable system operators that
would qualify as small under this size standard.
---------------------------------------------------------------------------

\288\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
\289\ 47 CFR 76.901(f); see Public Notice, FCC Announces New
Subscriber Count for the Definition of Small Cable Operator, DA 01-
158 (Cable Services Bureau, Jan. 24, 2001).
\290\ These data are derived from: R.R. Bowker, Broadcasting &
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8
& C-2 (data current as of June 30, 2005); Warren Communications
News, Television & Cable Factbook 2006, ``Ownership of Cable Systems
in the United States,'' pages D-1805 to D-1857.
\291\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's
finding that the operator does not qualify as a small cable operator
pursuant to section 76.901(f) of the Commission's rules. See 47 CFR
76.909(b).
---------------------------------------------------------------------------

111. Open Video Systems. The open video system (``OVS'') framework
was established in 1996, and is one of four statutorily recognized
options for the provision of video programming services by local
exchange carriers.\292\ The OVS framework provides opportunities for
the distribution of video programming other than through cable systems.
Because OVS operators provide subscription services,\293\ OVS falls
within the SBA small business size standard covering cable services,
which is ``Wired Telecommunications Carriers.'' \294\ The SBA has
developed a small business size standard for this category, which is:
all such firms having 1,500 or fewer employees. To gauge small business
prevalence for such services we must, however, use current census data
that are based on the previous category of Cable and Other Program
Distribution and its associated size standard; that size standard was:
all such firms having $13.5 million or less in annual receipts.\295\
According to Census Bureau data for 2002, there were a total of 1,191
firms in this previous category that operated for the entire

[[Page 49357]]

year.\296\ Of this total, 1,087 firms had annual receipts of under $10
million, and 43 firms had receipts of $10 million or more but less than
$25 million.\297\ Thus, the majority of cable firms can be considered
small. In addition, we note that the Commission has certified some OVS
operators, with some now providing service.\298\ Broadband service
providers (``BSPs'') are currently the only significant holders of OVS
certifications or local OVS franchises.\299\ The Commission does not
have financial or employment information regarding the entities
authorized to provide OVS, some of which may not yet be operational.
Thus, again, at least some of the OVS operators may qualify as small
entities.
---------------------------------------------------------------------------

\292\ 47 U.S.C. 571(a)(3)-(4). See Annual Assessment of the
Status of Competition in the Market for the Delivery of Video
Programming, Thirteenth Annual Report, 24 FCC Rcd 542, 606 para. 135
(2009) (``Thirteenth Annual Cable Competition Report'').
\293\ See 47 U.S.C. 573.
\294\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers''; http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\295\ 13 CFR 121.201, NAICS code 517110.
\296\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510 (issued November 2005).
\297\ Id. An additional 61 firms had annual receipts of $25
million or more.
\298\ A list of OVS certifications may be found at http://www.fcc.gov/mb/ovs/csovscer.html.
\299\ See Thirteenth Annual Cable Competition Report, 24 FCC Rcd
at 606-07 para. 135. BSPs are newer firms that are building state-
of-the-art, facilities-based networks to provide video, voice, and
data services over a single network.
---------------------------------------------------------------------------

112. Cable Television Relay Service. This service includes
transmitters generally used to relay cable programming within cable
television system distribution systems. This cable service is defined
within the broad economic census category of Wired Telecommunications
Carriers; that category is defined as follows: ``This 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 a combination of
technologies.'' \300\ The SBA has developed a small business size
standard for this category, which is: All such firms having 1,500 or
fewer employees. To gauge small business prevalence for cable services
we must, however, use current census data that are based on the
previous category of Cable and Other Program Distribution and its
associated size standard; that size standard was: All such firms having
$13.5 million or less in annual receipts.\301\ According to Census
Bureau data for 2002, there were a total of 1,191 firms in this
previous category that operated for the entire year.\302\ Of this
total, 1,087 firms had annual receipts of under $10 million, and 43
firms had receipts of $10 million or more but less than $25
million.\303\ Thus, the majority of these firms can be considered
small.
---------------------------------------------------------------------------

\300\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\301\ 13 CFR 121.201, NAICS code 517110.
\302\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510 (issued November 2005).
\303\ Id. An additional 61 firms had annual receipts of $25
million or more.
---------------------------------------------------------------------------

113. Multichannel Video Distribution and Data Service. MVDDS is a
terrestrial fixed microwave service operating in the 12.2-12.7 GHz
band. The Commission adopted criteria for defining three groups of
small businesses for purposes of determining their eligibility for
special provisions such as bidding credits. It defines a very small
business as an entity with average annual gross revenues not exceeding
$3 million for the preceding three years; a small business as an entity
with average annual gross revenues not exceeding $15 million for the
preceding three years; and an entrepreneur as an entity with average
annual gross revenues not exceeding $40 million for the preceding three
years.\304\ These definitions were approved by the SBA.\305\ On January
27, 2004, the Commission completed an auction of 214 MVDDS licenses
(Auction No. 53). In this auction, ten winning bidders won a total of
192 MVDDS licenses.\306\ Eight of the ten winning bidders claimed small
business status and won 144 of the licenses. The Commission also held
an auction of MVDDS licenses on December 7, 2005 (Auction 63). Of the
three winning bidders who won 22 licenses, two winning bidders, winning
21 of the licenses, claimed small business status.\307\
---------------------------------------------------------------------------

\304\ Amendment of Parts 2 and 25 of the Commission's Rules to
Permit Operation of NGSO FSS Systems Co-Frequency with GSO and
Terrestrial Systems in the Ku-Band Frequency Range; Amendment of the
Commission's Rules to Authorize Subsidiary Terrestrial Use of the
12.2-12.7 GHz Band by Direct Broadcast Satellite Licenses and their
Affiliates; and Applications of Broadwave USA, PDC Broadband
Corporation, and Satellite Receivers, Ltd. to provide A Fixed
Service in the 12.2-12.7 GHz Band, ET Docket No. 98-206, Memorandum
Opinion and Order and Second Report and Order, 17 FCC Rcd 9614,
9711, para. 252 (2002).
\305\ See Letter from Hector V. Barreto, Administrator, U.S.
Small Business Administration, to Margaret W. Wiener, Chief,
Auctions and Industry Analysis Division, WTB, FCC (Feb.13, 2002).
\306\ See ``Multichannel Video Distribution and Data Service
Auction Closes,'' Public Notice, 19 FCC Rcd 1834 (2004).
\307\ See ``Auction of Multichannel Video Distribution and Data
Service Licenses Closes; Winning Bidders Announced for Auction No.
63,'' Public Notice, 20 FCC Rcd 19807 (2005).
---------------------------------------------------------------------------

114. Amateur Radio Service. These licensees are held by individuals
in a noncommercial capacity; these licensees are not small entities.
115. Aviation and Marine Services. Small businesses in the aviation
and marine radio services use a very high frequency (``VHF'') marine or
aircraft radio and, as appropriate, an emergency position-indicating
radio beacon (and/or radar) or an emergency locator transmitter. The
Commission has not developed a small business size standard
specifically applicable to these small businesses. For purposes of this
analysis, the Commission uses the SBA small business size standard for
the category Wireless Telecommunications Carriers (except Satellite),
which is 1,500 or fewer employees.\308\ Most applicants for
recreational licenses are individuals. Approximately 581,000 ship
station licensees and 131,000 aircraft station licensees operate
domestically and are not subject to the radio carriage requirements of
any statute or treaty. For purposes of our evaluations in this
analysis, we estimate that there are up to approximately 712,000
licensees that are small businesses (or individuals) under the SBA
standard. In addition, between December 3, 1998 and December 14, 1998,
the Commission held an auction of 42 VHF Public Coast licenses in the
157.1875-157.4500 MHz (ship transmit) and 161.775-162.0125 MHz (coast
transmit) bands. For VHF Public Coast licenses, the Commission defines
a ``small'' business as an entity that, together with controlling
interests and affiliates, has average gross revenues for the preceding
three years not to exceed $15 million dollars. In addition, a ``very
small'' business is defined as an entity that, together with
controlling interests and affiliates, has average gross revenues for
the preceding three years not to exceed $3 million dollars.\309\ There
are approximately 10,672 licensees in the Marine Coast Service, and the
Commission estimates that almost all of them qualify as ``small''
businesses under the above special small business size standards.
---------------------------------------------------------------------------

\308\ 13 CFR 121.201, NAICS code 517210.
\309\ Amendment of the Commission's Rules Concerning Maritime
Communications, Third Report and Order and Memorandum Opinion and
Order, 13 FCC Rcd 19853 (1998).
---------------------------------------------------------------------------

116. Personal Radio Services. Personal radio services provide
short-range, low power radio for personal communications, radio
signaling, and business communications not provided for in other
services. The Personal Radio Services include spectrum licensed under
Part 95 of our rules.\310\ These services include Citizen Band Radio
Service (``CB''), General Mobile Radio

[[Page 49358]]

Service (``GMRS''), Radio Control Radio Service (``R/C''), Family Radio
Service (``FRS''), Wireless Medical Telemetry Service (``WMTS''),
Medical Implant Communications Service (``MICS''), Low Power Radio
Service (``LPRS''), and Multi-Use Radio Service (``MURS'').\311\ There
are a variety of methods used to license the spectrum in these rule
parts, from licensing by rule, to conditioning operation on successful
completion of a required test, to site-based licensing, to geographic
area licensing. Under the RFA, the Commission is required to make a
determination of which small entities are directly affected by the
rules being proposed. Since all such entities are wireless, we apply
the definition of Wireless Telecommunications Carriers (except
Satellite), pursuant to which a small entity is defined as employing
1,500 or fewer persons.\312\ Many of the licensees in these services
are individuals, and thus are not small entities. In addition, due to
the mostly unlicensed and shared nature of the spectrum utilized in
many of these services, the Commission lacks direct information upon
which to base an estimation of the number of small entities under an
SBA definition that might be directly affected by our action.
---------------------------------------------------------------------------

\310\ 47 CFR part 90.
\311\ The Citizens Band Radio Service, General Mobile Radio
Service, Radio Control Radio Service, Family Radio Service, Wireless
Medical Telemetry Service, Medical Implant Communications Service,
Low Power Radio Service, and Multi-Use Radio Service are governed by
Subpart D, Subpart A, Subpart C, Subpart B, Subpart H, Subpart I,
Subpart G, and Subpart J, respectively, of Part 95 of the
Commission's rules. See generally 47 CFR part 95.
\312\ 13 CFR 121.201, NAICS Code 517210.
---------------------------------------------------------------------------

117. Public Safety Radio Services. Public Safety radio services
include police, fire, local government, forestry conservation, highway
maintenance, and emergency medical services.\313\ There are a total of
approximately 127,540 licensees in these services. Governmental
entities \314\ as well as private businesses comprise the licensees for
these services. All governmental entities with populations of less than
50,000 fall within the definition of a small entity.\315\
---------------------------------------------------------------------------

\313\ With the exception of the special emergency service, these
services are governed by Subpart B of part 90 of the Commission's
rules, 47 CFR 90.15-90.27. The police service includes approximately
27,000 licensees that serve state, county, and municipal enforcement
through telephony (voice), telegraphy (code) and teletype and
facsimile (printed material). The fire radio service includes
approximately 23,000 licensees comprised of private volunteer or
professional fire companies as well as units under governmental
control. The local government service that is presently comprised of
approximately 41,000 licensees that are state, county, or municipal
entities that use the radio for official purposes not covered by
other public safety services. There are approximately 7,000
licensees within the forestry service which is comprised of
licensees from state departments of conservation and private forest
organizations who set up communications networks among fire lookout
towers and ground crews. The approximately 9,000 state and local
governments are licensed to highway maintenance service provide
emergency and routine communications to aid other public safety
services to keep main roads safe for vehicular traffic. The
approximately 1,000 licensees in the Emergency Medical Radio Service
(``EMRS'') use the 39 channels allocated to this service for
emergency medical service communications related to the delivery of
emergency medical treatment. 47 CFR 90.15-90.27. The approximately
20,000 licensees in the special emergency service include medical
services, rescue organizations, veterinarians, handicapped persons,
disaster relief organizations, school buses, beach patrols,
establishments in isolated areas, communications standby facilities,
and emergency repair of public communications facilities. 47 CFR
90.33-90.55.
\314\ 47 CFR 1.1162.
\315\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

118. Internet Service Providers. The 2007 Economic Census places
these firms, whose services might include voice over Internet protocol
(VoIP), in either of two categories, depending on whether the service
is provided over the provider's own telecommunications connections
(e.g. cable and DSL, ISPs), or over client-supplied telecommunications
connections (e.g. dial-up ISPs). The former are within the category of
Wired Telecommunications Carriers,\316\ which has an SBA small business
size standard of 1,500 or fewer employees.\317\ The latter are within
the category of All Other Telecommunications,\318\ which has a size
standard of annual receipts of $25 million or less.\319\ The most
current Census Bureau data for all such firms, however, are the 2002
data for the previous census category called Internet Service
Providers.\320\ That category had a small business size standard of $21
million or less in annual receipts, which was revised in late 2005 to
$23 million. The 2002 data show that there were 2,529 such firms that
operated for the entire year.\321\ Of those, 2,437 firms had annual
receipts of under $10 million, and an additional 47 firms had receipts
of between $10 million and $24,999,999.\322\ Consequently, we estimate
that the majority of ISP firms are small entities.
---------------------------------------------------------------------------

\316\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'', http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
\317\ 13 CFR 121.201, NAICS code 517110 (updated for inflation
in 2008).
\318\ U.S. Census Bureau, 2007 NAICS Definitions, ``517919 All
Other Telecommunications''; http://www.census.gov/naics/2007/def/ND517919.HTM#N517919.
\319\ 13 CFR 121.201, NAICS code 517919 (updated for inflation
in 2008).
\320\ U.S. Census Bureau, 2002 NAICS Definitions, ``518111
Internet Service Providers''; http://www.census.gov/eped/naics02/def/NDEF518.HTM.
\321\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 518111 (issued Nov. 2005).
\322\ An additional 45 firms had receipts of $25 million or
more.
---------------------------------------------------------------------------

119. The ISP industry has changed dramatically since 2002. The 2002
data cited above may therefore include entities that no longer provide
Internet access service and may exclude entities that now provide such
service. To ensure that this (IRFA/FRFA) describes the universe of
small entities that our action might affect, we discuss in turn several
different types of entities that might be providing Internet access
service.
120. We note that, although we have no specific information on the
number of small entities that provide Internet access service over
unlicensed spectrum, we include these entities in our IRFA/FRFA.

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

121. With certain exceptions, the Commission's Schedule of
Regulatory Fees applies to all Commission licensees and regulatees.
Most licensees will be required to count the number of licenses or call
signs authorized, and pay a regulatory fee based on the number of
licenses or call signs.\323\ In some instances, licensees may decide to
submit an FCC Form 159 Remittance Advice. Interstate telephone service
providers must compute their annual regulatory fee based on their
interstate and international end-user revenue using information they
already supply

[[Page 49359]]

to the Commission in compliance with the Form 499-A, Telecommunications
Reporting Worksheet. Compliance with the fee schedule will require some
licensees to tabulate the number of units (e.g., cellular telephones,
pagers, cable TV subscribers) they have in service. Licensees
ordinarily will keep a list of the number of units they have in service
as part of their normal business practices. No additional outside
professional skills are required to submit a regulatory fee payment,
and it can be completed by the employees responsible for an entity's
business records.
---------------------------------------------------------------------------

\323\ See 47 CFR 1.1162 for the general exemptions from
regulatory fees. e.g., Amateur radio licensees (except applicants
for vanity call signs) and operators in other non-licensed services
(e.g., Personal Radio, part 15, ship and aircraft). Governments and
non-profit (exempt under section 501(c) of the Internal Revenue
Code) entities are exempt from payment of regulatory fees and need
not submit payment. Non-commercial educational broadcast licensees
are exempt from regulatory fees as are licensees of auxiliary
broadcast services such as low power auxiliary stations, television
auxiliary service stations, remote pickup stations and aural
broadcast auxiliary stations where such licenses are used in
conjunction with commonly owned non-commercial educational stations.
Emergency Alert System licenses for auxiliary service facilities are
also exempt as are instructional television fixed service licensees.
Regulatory fees are automatically waived for the licensee of any
translator station that: (1) Is not licensed to, in whole or in
part, and does not have common ownership with, the licensee of a
commercial broadcast station; (2) does not derive income from
advertising; and (3) is dependent on subscriptions or contributions
from members of the community served for support. Receive only earth
station permittees are exempt from payment of regulatory fees. A
regulatee will be relieved of its fee payment requirement if its
total fee due, including all categories of fees for which payment is
due by the entity, amounts to less than $10.
---------------------------------------------------------------------------

122. As discussed previously in this Notice of Proposed Rulemaking,
the Commission concluded in its FY 2009 regulatory fee cycle that
licensees filing their annual regulatory fee payments must begin the
process by entering the Commission's Fee Filer system with a valid FRN
and password. In some instances, it will be necessary to use a specific
FRN and password that is linked to a particular regulatory fee bill.
Going forward, the submission of hardcopy Form 159 documents will not
be permitted for making a regulatory fee payment during the regulatory
fee cycle. By requiring licensees to use Fee Filer to begin the
regulatory fee payment process, errors resulting from illegible
handwriting on hardcopy Form 159's will be reduced, and the Commission
will be able to create an electronic record of licensee payment
attributes that are more easily traceable than payments that were
previously mailed in with a hardcopy Form 159.
123. Licensees and regulatees are advised that failure to submit
the required regulatory fee in a timely manner will subject the
licensee or regulatee to a late payment penalty of 25 percent in
addition to the required fee.\324\ If payment is not received, new or
pending applications may be dismissed, and existing authorizations may
be subject to rescission.\325\ Further, in accordance with the DCIA,
Federal agencies may bar a person or entity from obtaining a Federal
loan or loan insurance guarantee if that person or entity fails to pay
a delinquent debt owed to any Federal agency.\326\ Nonpayment of
regulatory fees is a debt owed to the United States pursuant to 31
U.S.C. 3711 et seq., and the DCIA. Appropriate enforcement measures, as
well as administrative and judicial remedies, may be exercised by the
Commission. Debts owed to the Commission may result in a person or
entity being denied a Federal loan or loan guarantee pending before
another Federal agency until such obligations are paid.\327\
---------------------------------------------------------------------------

\324\ 47 CFR 1.1164.
\325\ 47 CFR 1.1164(c).
\326\ Public Law 104-134, 110 Stat. 1321 (1996).
\327\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

124. The Commission's rules currently provide for relief in
exceptional circumstances. Persons or entities may request a waiver,
reduction or deferment of payment of the regulatory fee.\328\ However,
timely submission of the required regulatory fee must accompany
requests for waivers or reductions. This will avoid any late payment
penalty if the request is denied. The fee will be refunded if the
request is granted. In exceptional and compelling instances (e.g.,
where payment of the regulatory fee along with the waiver or reduction
request could result in reduction of service to a community or other
financial hardship to the licensee), the Commission will defer payment
in response to a request filed with the appropriate supporting
documentation.
---------------------------------------------------------------------------

\328\ 47 CFR 1.1166.
---------------------------------------------------------------------------

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

125. 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.\329\ In our NPRM, we sought comment on alternatives that
might simplify our fee procedures or otherwise benefit filers,
including small entities, while remaining consistent with our statutory
responsibilities in this proceeding. We received no comments
specifically in response to the IRFA.
---------------------------------------------------------------------------

\329\ 5 U.S.C. 603.
---------------------------------------------------------------------------

126. Several categories of licensees and regulatees are exempt from
payment of regulatory fees. Also, waiver procedures provide regulatees,
including small entity regulatees, relief in exceptional circumstances.
We note that small entities should be assisted by our implementation of
the Fee Filer program, and that we have continued our practice of
exempting fees whose total sum owed is less than $10.00.

VI. Report to Congress

127. The Commission will send a copy of this Report and Order,
including this FRFA, in a report to be sent to Congress and the
Government Accountability Office pursuant to the Congressional Review
Act.\330\ In addition, the Commission will send a copy of this Report
and Order, including the FRFA, to the Chief Counsel for Advocacy of the
Small Business Administration. A copy of this Report and Order and FRFA
(or summaries thereof) will also be published in the Federal
Register.\331\
---------------------------------------------------------------------------

\330\ See 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is
contained in Title II, 251, of the CWAAA; see Public Law 104-121,
Title II, 251, 110 Stat. 868.
\331\ See 5 U.S.C. 604(b).
---------------------------------------------------------------------------

VII. Ordering Clauses

128. Accordingly, it is ordered that, pursuant to sections 4(i) and
(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47
CFR 1.1166(b) be amended to read, ``Deferrals of fees, if granted, will
be for a designated period of time not to exceed six months.''
129. Accordingly, it is ordered that, pursuant to sections 4(i) and
(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47
CFR 1.1164(c) be amended to read, ``If a regulatory fee is not paid in
a timely manner, the regulatee will be notified of its deficiency. This
notice will automatically assess a 25 percent penalty, subject the
delinquent payor's pending applications to dismissal, and may require a
delinquent payor to show cause why its existing instruments of
authorization should not be subject to rescission.''
130. Accordingly, it is ordered that, pursuant to sections 4(i) and
(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47
U.S.C. 154(i), 154(j), 159, and 303(r), this Report and Order is hereby
adopted.
131. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Report and Order, including the Final Regulatory
Flexibility Analysis, to the Chief Counsel for Advocacy of the U.S.
Small Business Administration.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Rule Changes

For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 1 as follows:

[[Page 49360]]

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for Part 1 continues to read as follows:

Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j),
155, 157, 225, 303(r), 309.

0
2. Section 1.1152 is revised to read as follows:

Sec. 1.1152 Schedule of annual regulatory fees and filing locations
for wireless radio services.

----------------------------------------------------------------------------------------------------------------
Fee amount
Exclusive use services (per license) \1\ Address
----------------------------------------------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz and 220
MHz Local, Base Station & SMRS) (47
CFR, Part 90)
(a) New, Renew/Mod (FCC 601 & 159). $40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
(c) Renewal Only (FCC 601 & 159)... 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000
(d) Renewal Only (Electronic 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
220 MHz Nationwide
(a) New, Renew/Mod (FCC 601 & 159). 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
(c) Renewal Only (FCC 601 & 159)... 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic 40.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
2. Microwave (47 CFR Pt. 101) (Private)
(a) New, Renew/Mod (FCC 601 & 159). 25.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 25.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
(c) Renewal Only (FCC 601 & 159)... 25.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic 25.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
3. 218-219 MHz Service
(a) New, Renew/Mod (FCC 601 & 159). 65.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 65.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
(c) Renewal Only (FCC 601 & 159)... 65.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic 65.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
4. Shared Use Services--
Land Mobile (Frequencies Below 470
MHz--except 220 MHz)
(a) New, Renew/Mod (FCC 601 & 159). 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
(c) Renewal Only (FCC 601 & 159)... 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
General Mobile Radio Service
(a) New, Renew/Mod (FCC 605 & 159). 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 605 & 159).
(c) Renewal Only (FCC 605 & 159)... 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic 5.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 605 & 159).
Rural Radio (Part 22)
(a) New, Additional Facility, Major 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Renew/Mod (Electronic Filing) (FCC
601 & 159).
(b) Renewal, Minor Renew/Mod 20.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(Electronic Filing) (FCC 601 &
159).
Marine Coast
(a) New Renewal/Mod (FCC 601 & 159) 50.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renewal/Mod (Electronic 50.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).

[[Page 49361]]

(c) Renewal Only (FCC 601 & 159)... 50.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic 50.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
Aviation Ground
(a) New, Renewal/Mod (FCC 601 & 15.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
159).
(b) New, Renewal/Mod (Electronic 15.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 601 & 159).
(c) Renewal Only (FCC 601 & 159)... 15.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Only) 15.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(FCC 601 & 159).
Marine Ship
(a) New, Renewal/Mod (FCC 605 & 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
159).
(b) New, Renewal/Mod (Electronic 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 605 & 159).
(c) Renewal Only (FCC 605 & 159)... 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 605 & 159).
Aviation Aircraft
(a) New, Renew/Mod (FCC 605 & 159). 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 605 & 159).
(c) Renewal Only (FCC 605 & 159)... 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic 10.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 605 & 159).
5. Amateur Vanity Call Signs
(a) Initial or Renew (FCC 605 & 1.42 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
159).
(b) Initial or Renew (Electronic 1.42 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Filing) (FCC 605 & 159).
6. CMRS Cellular/Mobile Services (per
unit)
(FCC 159).......................... \2\.17 FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
7. CMRS Messaging Services (Per unit)
(FCC 159).......................... \3\.08 FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
8. Broadband Radio Service (formerly 310 FCC, , P.O. Box 979084, St. Louis, MO 63197-9000.
MMDS and MDS)
9. Local Multipoint Distribution 310 FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
Service
----------------------------------------------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire license term. Therefore, the annual fee
amount shown in this table that is a small fee (categories 1 through 5) must be multiplied by the 5- or 10-
year license term, as appropriate, to arrive at the total amount of regulatory fees owed. It should be further
noted that application fees may also apply as detailed in section 1.1102 of this chapter.
\2\ These are standard fees that are to be paid in accordance with 1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with 1.1157(b) of this chapter.

0
3. Section 1.1153 is revised to read as follows:

Sec. 1.1153 Schedule of annual regulatory fees and filing locations
for mass media services.

----------------------------------------------------------------------------------------------------------------
Radio [AM and FM] (47 CFR, Part 73) Fee amount Address
----------------------------------------------------------------------------------------------------------------
1. AM Class A:
<= 25,000 population............... $700 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197-9000.
25,001-75,000 population........... 1,400
75,001-150,000 population.......... 2,100
150,001-500,000 population......... 3,150
500,001-1,200,000 population....... 4,550
1,200,001-3,000,000 population..... 7,000
> 3,000,000 population............. 8,400
2. AM Class B:
<= 25,000 population............... 575 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197-9000.
25,001-75,000 population........... 1,150
75,001-150,000 population.......... 1,450
150,001-500,000 population......... 2,450

[[Page 49362]]

500,001-1,200,000 population....... 3,750
1,200,001-3,000,000 population..... 5,750
> 3,000,000 population............. 6,900
3. AM Class C:
<= 25,000 population............... 525 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197-9000.
25,001-75,000 population........... 800
75,001-150,000 population.......... 1,050
150,001-500,000 population......... 1,575
500,001-1,200,000 population....... 2,625
1,200,001-3,000,000 population..... 3,950
> 3,000,000 population............. 5,000
4. AM Class D:
<= 25,000 population............... 600 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197-9000.
25,001-75,000 population........... 900
75,001-150,000 population.......... 1,500
150,001-500,000 population......... 1,800
500,001-1,200,000 population....... 3,000
1,200,001-3,000,000 population..... 4,800
> 3,000,000 population............. 6,000
5. AM Construction Permit.............. 490 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197-9000.
6. FM Classes A, B1 and C3:
<= 25,000 population............... 675 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197-9000.
25,001-75,000 population........... 1,350
75,001-150,000 population.......... 1,850
150,001-500,000 population......... 2,875
500,001-1,200,000 population....... 4,550
1,200,001-3,000,000 population..... 7,425
> 3,000,000 population............. 9,450
7. FM Classes B, C, C0, C1 and C2:
<= 25,000 population............... 850 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197-9000.
25,001-75,000 population........... 1,500
75,001-150,000 population.......... 2,750
150,001-500,000 population......... 3,600
500,001-1,200,000 population....... 5,300
1,200,001-3,000,000 population..... 8,500
> 3,000,000 population............. 11,050
8. FM Construction Permits............. 675 FCC, Radio, P.O. Box 979084, St. Louis, MO 63197-9000.
TV (47 CFR, Part 73) VHF Commercial:
1. Markets 1 thru 10............... 84,625 FCC, TV Branch, P.O. Box 979084, St. Louis, MO 63197-9000.
2. Markets 11 thru 25.............. 68,175
3. Markets 26 thru 50.............. 40,475
4. Markets 51 thru 100............. 22,750
5. Remaining Markets............... 6,100
6. Construction Permits............ 6,100
UHF Commercial:
1. Markets 1 thru 10............... 34,650 FCC, UHF Commercial, P.O. Box 979084, St. Louis, MO 63197-
2. Markets 11 thru 25.............. 32,950 9000.
3. Markets 26 thru 50.............. 20,950
4. Markets 51 thru 100............. 12,325
5. Remaining Markets............... 3,275
6. Construction Permits............ 3,275
Satellite UHF/VHF Commercial:
1. All Markets..................... 1,250 FCC Satellite TV, P.O. Box 979084, St. Louis, MO 63197-
2. Construction Permits............ 670 9000.
Low Power TV, Class A TV, TV/FM 395 FCC, Low Power, P.O. Box 979084, St. Louis, MO 63197-9000.
Translator, & TV/FM Booster (47 CFR
Part 74).
Broadcast Auxiliary.................... 10 FCC, Auxiliary, P.O. Box 979084, St. Louis, MO 63197-9000.
----------------------------------------------------------------------------------------------------------------

0
4. Section 1.1154 is revised to read as follows:

Sec. 1.1154 Schedule of annual regulatory charges and filing
locations for common carrier services.

----------------------------------------------------------------------------------------------------------------
Fee amount Address
----------------------------------------------------------------------------------------------------------------
Radio Facilities:
1. Microwave (Domestic Public $25.00 FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Fixed) (Electronic Filing) (FCC
Form 601 & 159).
Carriers:

[[Page 49363]]

1. Interstate Telephone Service .00375 FCC, Carriers, P.O. Box 979084, St. Louis, MO 63197-9000.
Providers (per interstate and
international end-user revenues
(see FCC Form 499-A).
----------------------------------------------------------------------------------------------------------------

0
5. Section 1.1155 is revised to read as follows:

Sec. 1.1155 Schedule of regulatory fees and filing locations for
cable television services.

----------------------------------------------------------------------------------------------------------------
Fee amount Address
----------------------------------------------------------------------------------------------------------------
1. Cable Television Relay Service...... $370 FCC, Cable, P.O. Box 979084, St. Louis, MO 63197-9000.
2. Cable TV System (per subscriber).... .93
----------------------------------------------------------------------------------------------------------------

0
6. Section 1.1156 is revised to read as follows:

Sec. 1.1156 Schedule of regulatory fees and filing locations for
international services.

(a) The following schedule applies for the listed services:

----------------------------------------------------------------------------------------------------------------
Fee category Fee amount Address
----------------------------------------------------------------------------------------------------------------
Space Stations (Geostationary Orbit)... $131,375 FCC, International, P.O. Box 979084,
St. Louis, MO 63197-9000.
Space Stations (Non-Geostationary 141,750 FCC, International, P.O. Box 979084,
Orbit). St. Louis, MO 63197-9000.
Earth Stations: Transmit/Receive & 245 FCC, International, P.O. Box 979084,
Transmit only (per authorization or St. Louis, MO 63197-9000.
registration).
----------------------------------------------------------------------------------------------------------------

(b)(1) International Terrestrial and Satellite. Regulatory fees
for International Bearer Circuits are to be paid by facilities-based
common carriers that have active (used or leased) international bearer
circuits as of December 31, of the prior year in any terrestrial or
satellite transmission facility for the provision of service to an end
user or resale carrier, which includes active circuits to themselves or
to their affiliates. In addition, non-common carrier satellite
operators must pay a fee for each circuit sold or leased to any
customer, including themselves or their affiliates, other than an
international common carrier authorized by the Commission to provide
U.S. international common carrier services. ``Active circuits'' for
these purposes include backup and redundant circuits. In addition,
whether circuits are used specifically for voice or data is not
relevant in determining that they are active circuits.
(2) The fee amount, per active 64 KB circuit or equivalent will be
determined for each fiscal year. Payment, if mailed, shall be sent to:
FCC, International, P.O. Box 979084, St. Louis, MO 63197-9000.

----------------------------------------------------------------------------------------------------------------
International terrestrial and
satellite (capacity as of December Fee amount Address
31, 2010)
----------------------------------------------------------------------------------------------------------------
Terrestrial Common Carrier........ $0.35 per 64 KB FCC, International, P.O. Box 979084,
Satellite Common Carrier.......... Circuit. St. Louis, MO 63197-9000.
Satellite Non-Common Carrier......
----------------------------------------------------------------------------------------------------------------

(c) Submarine cable: Regulatory fees for submarine cable systems
will be paid annually, per cable landing license, for all submarine
cable systems operating as of December 31 of the prior year. The fee
amount will be determined by the Commission for each fiscal year.
Payment, if mailed, shall be sent to: FCC, International, P.O. Box
979084, St. Louis, MO 63197-9000.

----------------------------------------------------------------------------------------------------------------
Submarine cable systems (capacity as of
Dec. 31, 2010) Fee amount Address
----------------------------------------------------------------------------------------------------------------
< 2.5 Gbps............................. $12,825 FCC, International, P.O. Box 979084,
St. Louis, MO 63197-9000.
2.5 Gbps or greater, but less than 5 25,650 FCC, International, P.O. Box 979084,
Gbps. St. Louis, MO 63197-9000.
5 Gbps or greater, but less than 10 51,300 FCC, International, P.O. Box 979084,
Gbps. St. Louis, MO 63197-9000.
10 Gbps or greater, but less than 20 102,625 FCC, International, P.O. Box 979084,
Gbps. St. Louis, MO 63197-9000.
20 Gbps or greater..................... 205,225 FCC, International, P.O. Box 979084,
St. Louis, MO 63197-9000.
----------------------------------------------------------------------------------------------------------------

[[Page 49364]]

0
7. In Sec. 1.1164, paragraph (c) is revised to read as follows:

Sec. 1.1164. Penalties for late or insufficient regulatory fee
payments.

* * * * *
(c) If a regulatory fee is not paid in a timely manner, the
regulatee will be notified of its deficiency. This notice will
automatically assess a 25 percent penalty, subject the delinquent
payor's pending applications to dismissal, and may require a delinquent
payor to show cause why its existing instruments of authorization
should not be subject to rescission.
* * * * *

0
8. In Sec. 1.1166, paragraph (b) is revised to read as follows:

Sec. 1.1166. Waivers, reductions and deferrals of regulatory fees.

* * * * *
(b) Deferrals of fees, if granted, will be for a designated period
of time not to exceed six months.
* * * * *
[FR Doc. 2011-19836 Filed 8-9-11; 8:45 am]
BILLING CODE 6712-01-P