[Federal Register Volume 79, Number 128 (Thursday, July 3, 2014)]
[Proposed Rules]
[Pages 37982-38004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15167]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket Nos. 12-201; 13-140; 14-92; FCC 14-88]


Assessment and Collection of Regulatory Fees for Fiscal Year 
2014; Assessment and Collection of Regulatory Fees for Fiscal Year 
2013; and Procedures for Assessment and Collection of Regulatory Fees

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) will revise its Schedule of Regulatory Fees in order to 
recover an amount of $339,844,000 that Congress has required the 
Commission to collect for fiscal year 2014.

DATES: Submit comments on or before July 7, 2014, and reply comments on 
or before July 14, 2014.

ADDRESSES: You may submit comments, identified by MD Docket No. 14-92, 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web site: http://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
     Email: [email protected]. Include MD Docket No. 14-92 in the 
subject line of the message.
     Mail: Commercial overnight mail (other than U.S. Postal 
Service Express Mail, and Priority Mail, must be sent to 9300 East 
Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th 
Street SW., Washington DC 20554.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

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

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking (NPRM), Second Further Notice of Proposed 
Rulemaking, and Order, FCC 14-88, MD Docket No. 14-92, adopted on June 
12, 2014 and released June 13, 2014. The full text of this document is 
available for inspection and copying during normal business hours in 
the FCC Reference Center, 445 12th Street SW., Room CY-A257, Portals 
II, Washington, DC 20554, and may also be purchased from the 
Commission's copy contractor, BCPI, Inc., Portals II, 445 12th Street 
SW., Room CY-B402, Washington, DC 20554. Customers may contact BCPI, 
Inc. via their Web site, http://www.bcpi.com, or call 1-800-378-3160. 
This document is available in alternative formats (computer diskette, 
large print, audio record, and braille). Persons with disabilities who 
need documents in these formats may contact the FCC by email: 
[email protected] or phone: 202-418-0530 or TTY: 202-418-0432.

I. Procedural Matters

Ex Parte Rules Permit-But-Disclose Proceeding

    1. The Notice of Proposed Rulemaking (FY 2014 NPRM), Second Further 
Notice of Proposed Rulemaking, and Order shall be treated as a 
``permit-but-disclose'' proceeding in accordance with the Commission's 
ex parte rules. Persons making ex parte presentations must file a copy 
of any written presentation or a memorandum summarizing any oral 
presentation within two business days after the presentation (unless a 
different deadline applicable to the Sunshine period applies). Persons 
making oral ex parte presentations are reminded that memoranda 
summarizing the presentation must list all persons attending or 
otherwise participating in the meeting at which the ex parte 
presentation was made, and summarize all data presented and arguments 
made during the presentation. If the presentation consisted in whole or 
in part of the presentation of data or arguments already reflected in 
the presenter's written comments, memoranda, or other filings in the 
proceeding, the presenter may provide citations to such data or 
arguments in his or her prior comments, memoranda, or other filings 
(specifying the relevant page and/or paragraph numbers where such data 
or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with Sec.  1.1206(b). In proceedings governed by 
Sec.  1.49(f) or for which the Commission has made available a method 
of electronic filing,

[[Page 37983]]

written ex parte presentations and memoranda summarizing oral ex parte 
presentations, and all attachments thereto, must be filed through the 
electronic comment filing system available for that proceeding, and 
must be filed in their native format (e.g., .doc, .xml, .ppt, 
searchable .pdf). Participants in this proceeding should familiarize 
themselves with the Commission's ex parte rules.

Comment Filing Procedures

    2. Comments and Replies. Pursuant to Sec. Sec.  1.415 and 1.419 of 
the Commission's rules, 47 CFR 1.415, 1.419, interested parties may 
file comments and reply comments on or before the dates indicated on 
the first page of this document. Comments may be filed using: (1) The 
Commission's Electronic Comment Filing System (ECFS), (2) the Federal 
Government's eRulemaking Portal, or (3) by filing paper copies. See 
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 
(1998).
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/ or the Federal eRulemaking Portal: http://www.regulations.gov.
     Paper Filers: Parties who choose to file by paper must 
file an original and four copies of each filing. If more than one 
docket or rulemaking number appears in the caption of this proceeding, 
filers must submit two additional copies for each additional docket or 
rulemaking number.
    Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail. All filings must be addressed to the Commission's Secretary, 
Office of the Secretary, Federal Communications Commission.
    [dec222] All hand-delivered or messenger-delivered paper filings 
for the Commission's Secretary must be delivered to FCC Headquarters at 
445 12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours 
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together 
with rubber bands or fasteners. Any envelopes must be disposed of 
before entering the building.
    [dec222] Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.
    [dec222] U.S. Postal Service first-class, Express, and Priority 
mail must be addressed to 445 12th Street SW., Washington DC 20554.
    People with Disabilities: To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
    3. Availability of Documents. Comments, reply comments, and ex 
parte submissions will be available for public inspection during 
regular business hours in the FCC Reference Center, Federal 
Communications Commission, 445 12th Street SW., CY-A257, Washington, DC 
20554. These documents will also be available free online, via ECFS. 
Documents will be available electronically in ASCII, Word, and/or Adobe 
Acrobat.
    4. Accessibility Information. To request information in accessible 
formats (computer diskettes, large print, audio recording, and 
Braille), send an email to [email protected] or call the Commission's 
Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice), 
(202) 418-0432 (TTY). This document can also be downloaded in Word and 
Portable Document Format (``PDF'') at: http://www.fcc.gov.

Initial Paperwork Reduction Act

    5. This NPRM and Second Further Notice of Proposed Rulemaking 
document solicits possible proposed information collection 
requirements. The Commission, as part of its continuing effort to 
reduce paperwork burdens, invites the general public and the Office of 
Management and Budget (OMB) to comment on the possible proposed 
information collection requirements contained in this document, as 
required by the Paperwork Reduction Act of 1995, Public Law 104-13. In 
addition, pursuant to the Small Business Paperwork Relief Act of 2002, 
Public Law 107-198, see 44 U.S.C. 3506(c)(4), the Commission seeks 
specific comment on how it can further reduce the information 
collection burden for small business concerns with fewer than 25 
employees.

Initial Regulatory Flexibility Analysis

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

II. Introduction and Executive Summary

    7. In this Notice of Proposed Rulemaking, Second Further Notice of 
Proposed Rulemaking, and Order (Notice), the Federal Communication 
Commission seeks comment on its proposed regulatory fees for fiscal 
year (FY) 2014, and how it can improve its regulatory fee process. In 
2013, the Commission sought comment \1\ on several proposals to revise 
the regulatory fee process to more accurately reflect the regulatory 
activities of current Commission full time employees (FTEs).\2\ In the 
FY 2013 Report and Order,\3\ released on August 12, 2013, the 
Commission adopted a number of these proposals, including updating the 
number of FTEs in the core bureaus, reallocating certain FTEs in the 
International Bureau for regulatory fee purposes, establishing a new 
regulatory fee category to include Internet Protocol TV (IPTV), and 
consolidating UHF and VHF Television stations into one fee category.
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    \1\ Procedures for Assessment and Collection of Regulatory Fees; 
Assessment and Collection of Regulatory Fees for Fiscal Year 2013, 
Notice of Proposed Rulemaking and Further Notice of Proposed 
Rulemaking, 78 FR 34612 (June 10, 2013) (FY 2013 NPRM). Regulatory 
fees are mandated by Congress in section 9 of the Communications Act 
of 1934, as amended (Communications Act or Act), and collected to 
recover the regulatory costs associated with the Commission's 
enforcement, policy and rulemaking, user information, and 
international activities. 47 U.S.C. 159(a).
    \2\ One FTE, a ``Full Time Equivalent'' or ``Full Time 
Employee,'' is a unit of measure equal to the work performed 
annually by a full time person (working a 40 hour workweek for a 
full year) assigned to the particular job, and subject to agency 
personnel staffing limitations established by the U.S. Office of 
Management and Budget.
    \3\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2013, Report and Order, 78 FR 52433 (August 23, 2013) (FY 2013 
Report and Order).
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    8. This Notice seeks comment on the regulatory fees proposed for FY 
2014, set forth in Table B, and on whether AM expanded band radio 
stations should remain exempt from regulatory fees. In addition, the 
Commission explains that, for calculating FY 2014 regulatory fees, the 
following previously adopted provisions will apply: (1) UHF/VHF 
regulatory fees will be combined into one digital television fee 
category and (2) IPTV will be included in the cable television systems 
category for regulatory fee purposes. In addition, the Commission finds 
it in the public interest to maintain the Commercial Mobile Radio 
Service (CMRS) messaging rate at $.08 per subscriber.
    9. In the attached Second Further Notice of Proposed Rulemaking, 
the Commission seeks comment on additional reform measures to improve

[[Page 37984]]

the regulatory fee process, including the adoption of methodologies 
tailored to ensure a more equitable distribution of the regulatory fee 
burden among categories of Commission licensees under the statutory 
framework in section 9 of the Communications Act.\4\ Some of the issues 
for which comment is sought were raised by commenters in FY 2013 (or 
earlier) and now the Commission tailors its inquiry, in response to the 
more developed record, to further examine these proposals. Proposals 
for which further comment is sought include: (1) Reallocating some of 
the FTEs from the Enforcement Bureau, the Consumer & Governmental 
Affairs Bureau (CGB), and the Office of Engineering and Technology 
(OET) as direct FTEs for regulatory fee purposes; (2) reapportioning 
the fee allocations between groups of International Bureau regulatees; 
(3) periodically updating FTE allocations; (4) applying a cap on any 
regulatory fee increases for FY 2014; (5) improving access to 
information through our Web site; (6) establishing a higher de minimis 
threshold, such as $100, $500, or $1,000; (7) eliminating certain 
regulatory fee categories that account for a small amount of regulatory 
fee payments; (8) combining Interstate Telecommunications Service 
Providers (ITSP) and wireless voice services into one fee category; (9) 
adding direct broadcast satellite (DBS) operators to the cable 
television and IPTV category; (10) creating a new regulatory fee 
category for non-U.S. licensed space stations, or, alternatively, 
reallocating some FTEs assigned to work on non-U.S. licensed space 
station issues as indirect for regulatory fee purposes; and (11) adding 
a new regulatory fee category for toll free numbers. Some of these 
reforms would constitute mandatory amendments pursuant to section 
9(b)(2) of the Act. To the extent that some of the reforms and other 
changes would constitute permitted amendments, Congressional 
notification pursuant to sections 9(b)(3) and 9(b)(4)(B) would be 
required. In addition, the Commission is adopting revisions to 
Sec. Sec.  1.1112, 1.1158, 1.1161, and 1.1164 of our rules,\5\ to 
correspond with the Commission's FY 2013 Report and Order requiring 
electronic payment of regulatory fees.\6\
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    \4\ 47 U.S.C. 159.
    \5\ 47 CFR 1.1112, 1.1158, 1.1161, 1.1164. See Table F for the 
revised rules.
    \6\ See FY 2013 Report and Order, 78 FR 52445, paragraph 47 
(August 23, 2013) (FY 2013 Report and Order).
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III. Background

    10. Congress requires the Commission to collect regulatory fees 
``to recover the costs of . . . enforcement activities, policy and 
rulemaking activities, user information services, and international 
activities.'' \7\ The fees assessed each fiscal year are to ``be 
derived by determining the full-time equivalent number of employees 
performing'' these activities, ``adjusted to take into account factors 
that are reasonably related to the benefits provided to the payer of 
the fee by the Commission's activities. . . .'' \8\ Regulatory fees 
recover direct costs, such as salary and expenses; indirect costs, such 
as overhead functions; and support costs, such as rent, utilities, or 
equipment.\9\ Regulatory fees also cover the costs incurred by entities 
that are exempt from paying regulatory fees,\10\ entities whose 
regulatory fees are waived,\11\ and entities that provide nonregulated 
services.\12\ Congress sets the amount the Commission must collect each 
year in the Commission's fiscal year appropriations, and section 
9(a)(2) of the Act requires us to collect fees sufficient to offset, 
but not exceed, the amount appropriated. For FY 2014, this amount is 
$339,844,000.
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    \7\ 47 U.S.C. 159(a).
    \8\ 47 U.S.C. 159(b)(1)(A).
    \9\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2004, Report and Order, 69 FR 41030, paragraph 11 (July 7, 
2004) (FY 2004 Report and Order).
    \10\ For example, governmental and nonprofit entities are exempt 
from regulatory fees under section 9(h) of the Act. 47 U.S.C. 
159(h); 47 CFR 1.1162.
    \11\ 47 CFR 1.1166.
    \12\ For example, broadband services.
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    11. To calculate regulatory fees, the Commission allocates the 
total collection target, as mandated by Congress each year, across all 
regulatory fee categories. The allocation of fees to fee categories is 
based on the Commission's calculation of FTEs in each regulatory fee 
category. Historically, the Commission allocated FTEs as ``direct'' if 
the employee is in one of the four ``core'' bureaus; otherwise, that 
employee was considered an ``indirect'' FTE.\13\ The total FTEs for 
each fee category includes the direct FTEs associated with that 
category, plus a proportional allocation of the indirect FTEs. Each 
regulatee within those fee categories then pays a proportionate share 
based on some objective measure, e.g., revenues, subscribers, or 
licenses.
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    \13\ The core bureaus are the Wireline Competition Bureau, 
Wireless Telecommunications Bureau, Media Bureau, and part of the 
International Bureau. The ``indirect'' FTEs are the employees from 
the following bureaus and offices: Enforcement Bureau, Consumer & 
Governmental Affairs Bureau, Public Safety and Homeland Security 
Bureau, Chairman and Commissioners' offices, Office of Managing 
Director, Office of General Counsel, Office of the Inspector 
General, Office of Communications Business Opportunities, Office of 
Engineering and Technology, Office of Legislative Affairs, Office of 
Strategic Planning and Policy Analysis, Office of Workplace 
Diversity, Office of Media Relations, and Office of Administrative 
Law Judges, totaling 954 FTEs (excluding auctions FTEs).
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    12. In the FY 2012 NPRM,\14\ the Commission proposed updating the 
FTE allocations for the first time since 1998.\15\ After examining 
updated FTE data, the Commission determined that the International 
Bureau employed 22 percent of FTEs considered as direct in 2012, yet 
that bureau's regulatees contributed only 6.3 percent of the total 
regulatory fee collection for that year. In contrast, ITSPs 
(interexchange carriers (IXCs), incumbent local exchange carriers 
(LECs), toll resellers, and other IXC service providers regulated by 
the Wireline Competition Bureau) contributed 47 percent of the total 
regulatory fee collection in 2012, yet that bureau employed 29 percent 
of the FTEs considered direct in 2012.
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    \14\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2012, Notice of Proposed Rulemaking, 77 FR 29275 (May 17, 2012) 
(2012) (FY 2012 NPRM).
    \15\ FY 2012 NPRM, 77 FR 49752, paragraph 14 (August 17, 2012) 
(FY 2012 NPRM). This issue was also examined by the GAO. See GAO, 
Federal Communications Commission, ``Regulatory Fee Process Needs to 
be Updated,'' Aug. 2012, GAO-12-686 (GAO Report). The GAO concluded 
that the Commission should perform an updated FTE analysis to 
determine whether the fee categories should be revised.
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    13. With respect to updating the FTE allocations, the Commission 
recognized that, in most of the core bureaus, the work of most of its 
FTEs predominantly benefits that bureau's own licensees or regulatees. 
The Commission found, however, that the work performed by most of the 
International Bureau's FTEs benefitted other bureaus' licensees or the 
Commission as a whole.\16\ Based on extensive review, the Commission 
determined that 28 of the FTEs from the Policy Division, Satellite 
Division, and Bureau front office of the International Bureau should be 
considered direct FTEs because they are engaged primarily in oversight 
and regulation of International Bureau licensees, such as satellite 
systems and submarine cable

[[Page 37985]]

systems.\17\ The remaining International Bureau FTEs, however, were 
considered indirect for regulatory fee purposes.
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    \16\ FY 2013 Report and Order, 78 FR 52437, paragraph 16 (August 
23, 2013) (FY 2013 Report and Order). For example, the International 
Bureau's largest division, Strategic Analysis and Negotiation 
Division (SAND), is responsible for intergovernmental and regional 
leadership, negotiation, and planning and oversight of the 
Commission's participation in international forums and conferences. 
SAND's activities also cover telecommunications services outside of 
the International Bureau's oversight and regulatory activities; 
e.g., coordination of wireless services with Canada and Mexico. 
Because the activities of the SAND FTEs benefit the licensees in 
other bureaus in addition to its own licensees, the Commission 
reallocated the FTEs in SAND as indirect FTEs.
    \17\ FY 2013 Report and Order, 78 FR 52437, paragraph 16 (August 
23, 2013) (FY 2013 Report and Order).
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    14. In the FY 2013 Report and Order, the Commission committed to 
additional regulatory fee reform and to issuing a Second Further Notice 
of Proposed Rulemaking, stating:
    Various other issues relevant to revising our regulatory fee 
program were also raised in either the FY 2013 NPRM or in comments 
submitted in response to it. Because we require further information to 
best determine what action to take on these complex issues, we will 
consolidate them for consideration in a Second Further Notice of 
Proposed Rulemaking that we will issue shortly. We recognize that these 
are complex issues and that resolving them will be difficult. 
Nevertheless, we intend to conclusively readjust regulatory fees within 
three years.\18\
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    \18\ Id., 78 FR 52435, paragraph 7 (August 23, 2013) (FY 2013 
Report and Order).
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    15. To accomplish this goal, Commission staff continues its efforts 
to better align the work performed by its FTEs and the regulatees that 
benefit from such work, as required by section 9(b) of the Act. As part 
of these efforts, Commission staff engaged in extensive discussions 
with a number of Commission regulatees to obtain input concerning 
regulatory fee reform, including additional suggestions for FTE 
reallocation.\19\ The FCC now seeks comment, or further comment, on 
additional regulatory fee changes the Commission should adopt for FY 
2014 and beyond.
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    \19\ See, e.g., Enterprise Wireless Alliance, Notice of Ex Parte 
Presentation (Nov. 1, 2013); Competitive Carriers Association, 
Notice of Ex Parte Presentation (Nov. 8, 2013); Critical Messaging 
Association, Ex Parte Memorandum (Nov. 14, 2013); CTIA--The Wireless 
Association, AT&T, Verizon, and T-Mobile, Notice of Ex Parte 
Presentation (Nov. 15, 2013); United States Telecom Association 
(USTelecom), Notice of Ex Parte Presentation (Nov. 15, 2013); 
Satellite Industry Association (SIA), Notice of Oral Ex Parte 
Presentation (Nov. 22, 2013); American Cable Association (ACA), 
Notice of Ex Parte Presentation (Nov. 22, 2013); Independent 
Telephone and Telecommunications Alliance (ITTA), Notice of Ex Parte 
Communication (Nov. 22, 2013); North American Submarine Cable 
Association (NASCA), Notice of Ex Parte Presentation (Dec. 5, 2013); 
Intelsat Corporation Notice of Oral Ex Parte Presentation (Dec. 13, 
2013); SES, Inmarsat, and Telesat, Notice of Oral Ex Parte 
Presentation (Dec. 13, 2013); DIRECTV, DISH Network Corp., Hughes 
Network Systems, and Echostar Corp., Notice of Ex Parte Presentation 
(Dec. 13, 2013), National Association of Broadcasters (NAB), Notice 
of Late-Filed Ex Parte Communication (Jan. 24, 2014).
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IV. Changes Adopted in FY 2013 (or Earlier) That Will Apply in FY 2014

    16. As is discussed below, a number of substantive and procedural 
changes have previously been adopted and will apply to the calculation 
of regulatory fees in FY 2014. For the reasons discussed previously, 
the Commission will combine UHF/VHF regulatory fees into one digital 
television fee category \20\ and include IPTV in the cable television 
systems category.\21\ In addition, the FCC finds it in the public 
interest to retain the CMRS messaging rate at $.08 per subscriber.\22\
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    \20\ FY 2013 Report and Order, 78 FR 52443, paragraphs 32-34 
(August 23, 2013) (FY 2013 Report and Order).
    \21\ Id., 78 FR 52443-52444, paragraphs 35-36 (August 23, 2013) 
(FY 2013 Report and Order).
    \22\ Id., 78 FR 52444, paragraphs 38-39 (August 23, 2013) (FY 
2013 Report and Order).
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    17. Combining UHF/VHF Television Regulatory Fees into One Digital 
Television Fee Category. In the FY 2013 Report and Order, the 
Commission combined the VHF and UHF stations in the same market area 
into one fee category (with five tiered market segments) beginning in 
FY 2014 and eliminated the fee disparity between VHF and UHF 
stations.\23\
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    \23\ Id., 78 FR 52443, paragraph 33 (August 23, 2013) (FY 2013 
Report and Order).
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    18. Internet Protocol TV is included in the Cable Television 
Systems Category. In the FY 2013 Report and Order, the Commission 
concluded that IPTV providers should be subject to the same regulatory 
fees as cable providers and, beginning in FY 2014, the Commission will 
assess regulatory fees on IPTV providers in the same manner that it 
assesses fees on cable television providers; the Commission is not, 
however, stating that IPTV providers are cable television 
providers.\24\
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    \24\ See FY 2013 Report and Order, 78 FR 52444, paragraph 36 
(August 23, 2013) (FY 2013 Report and Order). For purposes of this 
fee, IPTV providers include the AT&T U-Verse service and other 
wireline providers that deliver multiple channels of video using 
Internet protocol. However, the Commission notes that this 
regulatory fee will not apply to online video distributors (OVDs), 
e.g., over-the-top video providers See Annual Assessment of the 
Status of Competition in the Market for the Delivery of Video 
Programming, 28 FCC Rcd 10496, 10499 n.4 (July 22, 2013).
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    19. Congressional notification. As required by sections 9(b)(3) and 
9(b)(4)(B) of the Act,\25\ the Commission notified Congress on March 
27, 2014 of the addition of IPTV to the cable television system fee 
category and the combination of UHF and VHF stations in the same market 
into a single fee category.\26\ The pending 90-day congressional 
notification period expires on June 25, 2014, upon which these changes 
will become effective.
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    \25\ 47 U.S.C. 159(b)(3); 47 U.S.C. 159(b)(4)(B).
    \26\ 47 U.S.C. 159(b)(4)(B); Letter concerning permitted 
amendment from Office of Managing Director, Federal Communications 
Commission to Chair and Ranking Members of U.S. House of 
Representatives' Committees on Energy and Commerce and 
Appropriations and applicable Subcommittees and to Chair and Ranking 
Members of the United States Senate Committees on Commerce, Science, 
and Transportation and Appropriations and applicable Subcommittees 
(Mar. 27, 2014).
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    20. Commercial Mobile Radio Service (CMRS) Messaging. CMRS 
Messaging Service, which replaced the CMRS One-Way Paging fee category 
in 1997, includes all narrowband services.\27\ Initially, the 
Commission froze the regulatory fee for this fee category at the FY 
2002 level to provide relief to the paging industry by setting an 
applicable rate of $0.08 per subscriber beginning in FY 2003.\28\ At 
that time the Commission noted that CMRS Messaging units had 
significantly declined from 40.8 million in FY 1997 to 19.7 million in 
FY 2003--a decline of 51.7 percent.\29\ We continue to observe a 
gradual decline in subscribership, which indicates that this decrease 
is not temporary. We will maintain the CMRS Messaging fee rate at $.08 
per subscriber in FY 2014.\30\ If we adopt a new de minimis threshold, 
as discussed below, some of the CMRS Messaging providers will no longer 
be required to pay regulatory fees.
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    \27\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 1997, Report and Order, 62 FR 37417, paragraph 60 (July 11, 
1997) (FY 1997 Report and Order).
    \28\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2003, Report and Order, 68 FR 48451, paragraph 22 (August 13, 
2003) (FY 2003 Report and Order).
    \29\ FY 2003 Report and Order, 68 FR 48451, paragraph 21 (August 
13, 2003) (FY 2003 Report and Order). The subscriber base in the 
paging industry declined 93 percent from 40.8 million to 2.97 
million between FY 1997 and FY 2013, according to FY 2013 collection 
data as of Sept. 30, 2013.
    \30\ If the fee rate were not frozen at $.08 per subscriber, the 
actual fee rate for the CMRS Messaging fee category would have been 
$.46 per subscriber (.39% of all fees with a projected unit count of 
2.9 million).
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V. Order and Administrative Changes for FY 2014

    21. We have previously adopted several procedural changes that will 
apply to this year's fee collection. In particular, in the FY 2013 
Report and Order we stated the Commission will no longer accept checks 
(including cashier's checks) and the accompanying hardcopy forms (e.g., 
Form 159's, Form 159-B's, Form 159-E's, Form 159-W's) for the payment 
of regulatory fees.\31\ This new paperless procedure will require that 
all payments be made by

[[Page 37986]]

online ACH payment, online credit card, or wire transfer. Accordingly, 
we revise Sec. Sec.  1.1112, 1.1158, 1.1161, and 1.1164 of our rules 
\32\ to correspond with the Commission's FY 2013 Report and Order 
requiring electronic payment of regulatory fees.\33\
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    \31\ See FY 2013 Report and Order, 78 FR 52445, paragraph 48 
(August 23, 2013) (FY 2013 Report and Order).
    \32\ 47 CFR 1.1112, 1.1158, 1.1161, 1.1164.
    \33\ See Rule Changes section.
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    22. Carriers seeking to revise their subscriber counts can do so by 
accessing Fee Filer. Providers should follow the prompts in Fee Filer 
to record their subscriber revisions, along with any supporting 
documentation. 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. The 
Commission will then review the revised count and supporting 
documentation and either approve or disapprove the revision.
    23. For purposes of determining a CMRS provider's subscriber count, 
the Commission determines the quantity of assigned telephone numbers 
from the provider's Numbering Resource Utilization Forecast (NRUF) 
report and adjusts for porting to account for numbers that have been 
marked as assigned in their numbering systems but that reflect 
telephone numbers being served by another carrier.\34\ The CMRS count 
is based on the carrier's Operating Company Numbers (OCNs) aggregate 
subscriber total. For carriers that do not file an NRUF report, the 
Commission will not calculate an initial CMRS subscriber total. In 
these instances, the carriers should compute their fee payment based on 
subscriber counts as of December 31, 2013. Regardless of whether the 
Commission calculates a carrier's initial CMRS subscriber count, or the 
carrier self-reports its subscriber count based on December 31, 2013 
totals, 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, along with 
applicable penalties and interest. Finally, beginning this year, the 
Commission will no longer mail out initial CMRS assessment letters to 
CMRS providers.
---------------------------------------------------------------------------

    \34\ 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, 70 FR 41973-41974, paragraphs 38-44 
(July 21, 2005) (FY 2005 Report and Order and Order on 
Reconsideration).
---------------------------------------------------------------------------

VI. Notice of Proposed Rulemaking

    24. Proposed regulatory fees. As noted in paragraph four, in FY 
2014 we are required to collect $339,844,000 in regulatory fees.\35\ 
Based on the new proposals below and the earlier adopted changes 
discussed in Section IV, above, we seek comment on the resulting 
proposed regulatory fees in Table B, which are based on the allocations 
listed in Table 1 below.
---------------------------------------------------------------------------

    \35\ Attachment A lists the proposed regulatory fees for FY 2014 
if none of the changes proposed in the Notice are adopted. In FY 
2013, the Commission was also required to collect $339,844,000 in 
regulatory fees. The final collection amount was $10.9 million over 
this total, which the Commission deposited into the U.S. Treasury. 
The year-to-date accumulated total is $81.9 million.

                           Table 1--FY 2013 and FY 2014 Allocations of FTEs by Bureau
----------------------------------------------------------------------------------------------------------------
                                                    FY 2013 FTE     FY 2013 FTE     FY 2014 FTE     FY 2014 FTE
                                                    Allocation      Allocation      Allocation      Allocation
                     Bureau                         (uncapped)     (capped) \37\    (uncapped)     (capped) \39\
                                                  \36\ (percent)     (percent)    \38\ (percent)     (percent)
----------------------------------------------------------------------------------------------------------------
International...................................            6.13            6.91            6.14            6.13
Wireless Telecommunications.....................           21.44           19.59           20.39           20.00
Wireline Competition............................           35.01           39.81           38.60           39.17
Media...........................................           37.42           33.69           34.87           34.70
----------------------------------------------------------------------------------------------------------------

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

    \36\ The FY 2013 (uncapped) column represents the allocation 
percentages before a fee increase cap of 7.5% was applied to 
regulatory fee categories.
    \37\ The FY 2013 (capped) column represents the allocation 
percentages after a fee increase cap of 7.5% was applied to 
regulatory fee categories.
    \38\ The FY 2014 (uncapped) column represents the allocation 
percentages using updated FY 2014 FTE counts (through September 30, 
2013).
    \39\ The FY 2014 (capped) column represents the allocation 
percentages using updated FY 2014 FTE counts (through September 30, 
2013), if a cap is applied, e.g. a cap of 7.5%.
---------------------------------------------------------------------------

    25. AM Expanded Band Radio Stations. The AM Expanded Band licensing 
rules were adopted in the 1990's to promote the cancellation of 
licenses of ``high interfering'' stations in the AM standard band. 
Migration to the AM Expanded Band was voluntary, and a migrating 
licensee was allowed a five-year period to operate in both bands, after 
which it was to relinquish either its lower band or expanded band 
frequency, at its option. As an incentive to move to the expanded band, 
the Commission decided not to subject these AM radio stations to 
regulatory fees. In the FY 2008 FNPRM, however, the Commission stated 
that ``[t]here is no compelling reason to permanently exempt AM 
expanded band licensees from paying regulatory fees. As a general 
matter, it would be appropriate to treat the AM expanded band and the 
AM standard band similarly for regulatory fee purposes.'' \40\ There is 
no longer a reason to provide a regulatory incentive to AM broadcasters 
in the expanded band. A number of those broadcasters relinquished their 
standard band licenses and have chosen to operate exclusively in the 
expanded band; at least two opted to retain their standard band 
licenses. There is no reason why broadcasters who have retained both 
their standard and expanded band licenses should continue to be exempt 
from paying regulatory fees.\41\ We therefore propose adopting a 
section 9 regulatory fee obligation for all AM Expanded Band radio 
stations, beginning in FY 2014. We seek comment on this proposal.
---------------------------------------------------------------------------

    \40\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, Report and Order and Further Notice of Proposed 
Rulemaking, 73 FR 50203, paragraph 13 (August 26, 2008) (FY 2008 
FNPRM).
    \41\ FY 2008 FNPRM, 73 FR 50203, paragraph 13 (August 26, 2008) 
(FY 2008 FNPRM).
---------------------------------------------------------------------------

VII. Second Further Notice of Proposed Rulemaking

    26. In this Second Further Notice of Proposed Rulemaking, we seek 
comment on additional proposals for regulatory fee reform. Several of 
the issues discussed below were previously raised by commenters but 
were not adopted because we either did not have the opportunity to 
fully evaluate the proposals or we determined that additional comments 
would be useful.\42\
---------------------------------------------------------------------------

    \42\ See supra paragraph 15.
---------------------------------------------------------------------------

    27. Our proposals to further reform the regulatory fee process 
involve

[[Page 37987]]

consideration of the following concepts: (1) Combining certain 
regulatory fee categories; (2) creating new fee categories; and/or (3) 
reallocating direct or indirect FTEs. In addition, we seek to make the 
regulatory fee calculation, collection, and appeal procedures more 
efficient, transparent, and user friendly. We also seek comment on 
adopting a cap on regulatory fee increases, increasing the de minimis 
threshold, eliminating some regulatory fee categories, and reexamining 
FTE allocations periodically.

FTE Reallocations

1. Enforcement Bureau and Consumer & Governmental Affairs Bureau
    28. We have historically considered the FTEs in the core bureaus to 
be direct FTEs for regulatory fee purposes. The FTEs in the non-core 
bureaus and offices have been considered ``indirect,'' and allocated as 
such across all Commission regulatory fee payors in proportion to their 
allocated share of the overall regulatory fee burden. We have not 
designated any FTEs outside the core bureaus as direct or used the FTEs 
of the non-core bureaus to determine regulatory fee allocations. 
Commenters, however, have suggested that the work of FTEs in two of the 
non-core bureaus--the Enforcement Bureau and CGB--is more focused on 
certain core bureau(s), and that reallocation of such indirect FTEs as 
``direct'' for regulatory fee purposes may be appropriate.
    29. In our FY 2013 NPRM we sought comment on ``whether the work of 
indirect FTEs is focused disproportionately on one or more core 
bureaus, and if we should allocate indirect FTEs among the core bureaus 
on this basis.'' \43\ In response, SIA proposed that we reallocate 
Enforcement Bureau and CGB FTEs as direct FTEs to the Wireline 
Competition Bureau, Wireless Telecommunications Bureau, and Media 
Bureau.\44\ We seek comment on this proposal.
---------------------------------------------------------------------------

    \43\ FY 2013 NPRM, 78 FR 34619, paragraph 35 (June 10, 2013) (FY 
2013 NPRM).
    \44\ SIA Comments at 10 (filed June 19, 2013).
---------------------------------------------------------------------------

    30. SIA's argument concerning reallocating indirect FTEs is based 
on the assumption that the FTEs in the Enforcement Bureau and CGB spend 
little time on matters affecting International Bureau regulatees. Based 
on our examination into the work done by these bureaus, we believe 
SIA's reallocation proposal deserves further consideration. The 
Enforcement Bureau regional and field offices, 114 FTEs, located 
throughout the Nation,\45\ are responsible for handling investigations 
and inspections in response to complaints (such as pirate radio 
complaints and wireless interference complaints) and conducting on-site 
inspections of radio facilities, cable systems, and antenna structures 
to determine compliance with applicable Commission rules.\46\ The 
regional and field offices also conduct wireless coordination with 
Canada and Mexico, to address potential wireless interference issues 
for wireless and broadcast services. Table 2, below, shows the change 
in FTE allocation if the Commission adopts this proposal and allocates 
the field and regional offices FTEs equally to the Wireless 
Telecommunications Bureau and the Media Bureau. We seek comment on this 
proposal, including the appropriate reallocations of FTEs between the 
two bureaus. In addition, the Enforcement Bureau \47\ as a whole (i.e., 
all the Enforcement Bureau divisions including the regional and field 
offices) \48\ is primarily focused on enforcement activity in the 
wireline, wireless, and broadcast or media industries, and only 
occasionally addresses Act and rule violations by International Bureau 
licensees.\49\ We seek comment on this proposal and also seek proposals 
concerning the appropriate percentages of FTEs among the three bureaus. 
Similarly, CGB,\50\ the bureau responsible for, among other things, 
processing informal consumer complaints, received a total of 316,430 
informal complaints in 2013 of which 3,682 (approximately one percent 
of the total informal complaints) were filed against DBS providers; 
only a very small number of informal complaints dealt with issues 
handled by the International Bureau.\51\ We seek comment on this 
proposal and also seek other proposals concerning appropriate 
reallocation percentages of FTEs among the three bureaus.
---------------------------------------------------------------------------

    \45\ For the locations of the regional and field offices, see 
http://transition.fcc.gov/eb/rfo/.
    \46\ In FY 2013, the Enforcement Bureau database shows that 
investigations done by the regional and field offices were almost 
evenly split between wireless and broadcast-related cases. The 
regional and field offices' work involving wireline carriers is 
limited to disaster relief efforts. In addition, the regional and 
field offices as a whole employ one engineer responsible for 
addressing all of the Enforcement Bureau's satellite interference 
issues. Thus, the regional and field offices of the Enforcement 
Bureau devote nearly all of their work (with the exception of one 
FTE) to media/broadcast and wireless enforcement.
    \47\ The Enforcement Bureau has 262 FTEs as of September 30, 
2013.
    \48\ The Enforcement Bureau consists of the following: Office of 
the Bureau Chief, the Investigations and Hearings Division, the 
Market Disputes Resolution Division, the Spectrum Enforcement 
Division, the Telecommunications Consumers Division, and the 
Regional and Field Offices (discussed above). The bureau's efforts 
are primarily focused on enforcement activity in the wireline, 
wireless, and broadcast or media industries.
    \49\ See, e.g., Intelsat License, LLC, Notice of Apparent 
Liability for Forfeiture, 28 FCC Rcd 17183 (2013) (apparent 
violation of Sec.  25.158(e) of the Commission's rules).
    \50\ CGB has 156 FTEs. The division responsible for informal 
complaints is the Consumer Inquiries and Complaints Division, with 
55 FTEs. CGB develops and implements the Commission's consumer 
policies, including disability access issues; provides outreach and 
education to consumers; and responds to consumer inquiries and 
informal complaints. CGB also maintains partnerships with state, 
local, and Tribal governments on issues of emergency preparedness 
and implementation of new technologies.
    \51\ Although DBS providers are licensed by the International 
Bureau, the Media Bureau is responsible for overseeing DBS 
providers' compliance with the Commission's rules. Informal 
complaints filed by consumers against DBS providers could therefore 
be considered Media Bureau issues rather than International Bureau 
issues.
---------------------------------------------------------------------------

    31. The Commission also seeks comment on all aspects of SIA's 
proposal. In the process, the Commission asks commenters for input 
concerning whether our analysis accurately attributes the full range of 
work done by the Enforcement Bureau and CGB, and whether those two 
bureaus are more focused on licensees and regulatees of the Wireline 
Competition Bureau, Wireless Telecommunications Bureau, and Media 
Bureau than the International Bureau.\52\ Commenters should specify 
proposed reallocations concerning the Enforcement Bureau and CGB, and 
explain the legal and policy reasoning for such support.
---------------------------------------------------------------------------

    \52\ Please note that one of the CGB divisions, the Reference 
Information Center, contains public filings from all 
telecommunications industries, including International Space Station 
files.
---------------------------------------------------------------------------

2. Office of Engineering & Technology and Other Reallocation Proposals
    32. The FCC recognizes that sometimes the work of the FTEs in a 
core or non-core bureau may affect the regulatees of another core 
bureau or bureaus. We seek comment on whether, in addition to those 
divisions affected by the proposed FTE reallocations discussed above, 
there are other divisions within the core or non-core bureaus that 
should be treated as direct FTEs to another bureau. For example, the 
Office of Engineering and Technology (OET) advises the Commission on 
technical and engineering matters, develops and administers Commission 
decisions regarding spectrum allocations, develops technical rules for 
the operation of unlicensed radio devices, authorizes the marketing of 
radio frequency devices as compliant with

[[Page 37988]]

Commission technical rules, grants experimental radio licenses, and is 
the agency's liaison to the National Telecommunications and Information 
Administration (NTIA) for coordinating policy decisions and frequency 
assignments between Federal agency and non-Federal spectrum users. OET 
also manages the FCC's program to perform broadband speed measurements 
and supports inter-bureau broadband projects such as the Technology 
Transitions Task Force. OET FTEs provide direct support to the 
equipment authorization and experimental radio licensing programs, as 
well as indirectly to the Commission's overall spectrum policy planning 
processes (e.g., spectrum allocations). We seek comment on whether and 
to what extent commenters believe OET's work is focused on the 
licensees and regulatees of the Wireless Telecommunications Bureau, 
Wireline Competition Bureau, Media Bureau, and International Bureau, 
and whether a portion of OET FTEs should be directly allocated to those 
bureaus for determining regulatory fees. Commenters should specify 
proposed reallocations and the legal and policy reasoning for such 
support.
    33. Of the proposals presented above, for illustrative purposes, 
the following Table 2 approximates the impact based on adopting two of 
these proposals--reallocating the CGB and EB regional and field 
offices--as direct to certain core bureaus.

                                             Table 2--Reallocating the CGB and EB Regional and Field Offices
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            EB Regional and Field
               Bureau                  Current FTE Direct     Current FTE Indirect          CGB FTEs             Offices FTEs          FTE Total \53\
--------------------------------------------------------------------------------------------------------------------------------------------------------
International......................  28 FTEs...............  47.5 FTEs.............  0 FTEs...............  0 FTEs...............  75.5 FTEs.
                                     (6.14%)...............  (6.14%)...............  (0.00%)..............  (0.00%)..............  (5.03%).
Wireless...........................  93 FTEs...............  157.9 FTEs............  52 FTEs..............  57 FTEs..............  359.9 FTEs.
                                     (20.39%)..............  (20.39%)..............  (33.33%).............  (50.00%).............  (24%).
Wireline...........................  176 FTEs..............  298.7 FTEs............  52 FTEs..............  0 FTEs...............  526.7 FTEs.
                                     (38.60%)..............  (38.60%)..............  (33.33%).............  (0.00%)..............  (35.11%).
Media..............................  159 FTEs..............  269.9 FTEs............  52 FTEs..............  57 FTEs..............  537.9 FTEs.
                                     (34.87%)..............  (34.87%)..............  (33.33%).............  (50.00%).............  (35.86%).
                                    --------------------------------------------------------------------------------------------------------------------
    Total..........................  456...................  774...................  156..................  114..................  1,500.
--------------------------------------------------------------------------------------------------------------------------------------------------------

3. Reallocations Within Fee Categories
    34. Submarine Cable. Submarine cable systems transport data, as 
well as voice services, for international carriers, Internet providers, 
wholesale operators, corporate customers, and governments. As discussed 
in the FY 2013 NPRM, international \53\ submarine cable service 
involves minimal regulation and oversight from the Commission after the 
initial licensing process.\54\ For example, such activity is limited to 
filing Traffic and Revenue Reports regarding international services and 
for U.S. facilities based international common carriers, and Circuit 
Status Reports.\55\ Several commenters in response to the FY 2013 NPRM 
suggested that the regulatory fees among International Bureau licensees 
should be adjusted to reflect this minimal oversight.\56\ The satellite 
operators and earth stations pay 59 percent of regulatory fees 
allocated to International Bureau licensees, and the submarine cable 
and bearer circuit fee categories pay 41 percent. The Commission 
tentatively concludes that it should revise the apportionment between 
the satellite/earth station operators and the submarine cable 
operators/terrestrial/satellite circuits to reduce the proportional 
allocation for submarine cable operators/terrestrial/satellite circuits 
and increase the allocation for satellite/earth station operators to 
more accurately reflect the amount of oversight and regulation for 
these industries.\57\
---------------------------------------------------------------------------

    \53\ This illustration is based on the adoption of the proposals 
to allocate the FTEs from the Enforcement Bureau Regional and Field 
offices and CGB.
    \54\ FY 2013 NPRM, 78 FR 34618-34619, paragraph 33 (June 10, 
2013) (FY 2013 NPRM).
    \55\ Id.
    \56\ See, e.g., NASCA Comments at 8-9 (filed June 19, 2013); 
Telstra Comments at 2 (filed June 19, 2013); ICC Reply Comments at 2 
(filed June 19, 2013).
    \57\ The revenue allocation between submarine cable operators 
and common carrier terrestrial/satellite circuits is 87.6 percent/
12.4 percent. This was adopted in the Submarine Cable Order. See 
Assessment and Collection of Regulatory Fees for Fiscal Year 2008, 
Second Report and Order, 74 FR 22104 (May 12, 2009) (Submarine Cable 
Order). The Commission does not propose any changes to the 87.6/12.4 
allocation between submarine cable operators and common carrier 
terrestrial/satellite circuits.
---------------------------------------------------------------------------

    35. Earth Stations. An earth station transmits or receives messages 
from a satellite. Currently, earth station licensees pay regulatory 
fees of $275 per year while satellite operators pay $139,100 (for space 
stations, per operational system in geostationary orbit) and $149,875 
(for space stations, per operational system in non-geostationary orbit) 
per year. The Commission recognizes that earth station and satellite 
oversight and regulation, although using different quantities of FTEs, 
is interdependent to some degree and also involves issues pertaining to 
non-U.S.-licensed space stations. Commenters suggest that the FCC 
increase the percentage of regulatory fees assigned to earth stations. 
We therefore seek comment on whether the Commission should increase 
this allocation in order to reflect more appropriately the regulation 
and oversight of this industry. Commenters should also discuss whether 
the type of earth station authorization should affect the relative 
allocation for regulatory fees. We invite comment on whether any 
material distinction should be drawn concerning the appropriate 
allocation of regulatory fees among various types of earth station 
authorizations.

Improving the Regulatory Fee Process

    36. Following this analysis for FY 2014, how often should the 
Commission conduct an in depth review in the future? How often should 
this methodology be revisited for allocation of direct FTEs? Absent any 
changes in methodology, how often should the Commission update the 
number of FTEs in the core bureaus in order to calculate regulatory 
fees? Commenters should recommend an appropriate time frame, such as 
every three years, that balances the need for stability for industry 
sectors to budget for regulatory fees against the need to reflect the 
changing work of the Commission FTEs.

Revising Our De Minimis Threshold and Eliminating Regulatory Fee 
Categories

    37. Under the Commission's present policy on de minimis regulatory 
fee payments, a regulatee is exempt from paying regulatory fees if the 
sum total of

[[Page 37989]]

all of its regulatory fee liabilities for the fiscal year is less than 
$10. For example, using FY 2013 fee data, an ITSP would be exempt if 
the total calendar year revenues did not exceed $2,881. A cell phone 
operator would be exempt if the number of subscribers did not exceed 
55; a cable television operator would be exempt if the subscriber 
number did not exceed nine. The Commission proposes to increase the de 
minimis threshold to provide more relief to smaller entities. We seek 
comment on whether the Commission should establish a higher de minimis 
amount, such as $100, $500, $750, or $1,000. In doing so, we seek 
comment on whether the administrative burden on small regulatees and 
the FCC's operational costs associated with processing and collecting 
these fees outweigh the benefits of such payments. Commenters should 
discuss whether certain categories of licensees, such as those who are 
subject to frequency coordination by private industry groups, should be 
excluded from regulatory fees due to limited Commission regulation, 
among other things. Commenters should also discuss whether smaller 
entities with limited funds are more likely to be unable to budget for 
regulatory fees on a timely basis and therefore incur late fees and use 
more Commission resources for fee collection. In addition, commenters 
should address whether the Commission should phase in a higher de 
minimis threshold over two or more years.
    38. Similarly, we seek comment on whether to include certain fee 
categories (e.g., broadcast and multi-year licenses) in a new de 
minimis threshold. Commenters should discuss whether adding a new tier 
for broadcast, for smaller stations, would be feasible. Concerning 
multi-year licenses, the Commission proposes to exclude two categories 
whose regulatory fees for the term of the license would be under $100: 
Vanity call signs ($21.60 for a 10-year license) and General Mobile 
Radio Service (GMRS) ($25 for a five-year license).\58\ The Commission 
also seeks comment on eliminating certain other regulatory fee 
categories, such as Satellite TV, Satellite TV Construction Permits, 
Broadcast Auxiliaries, LPTV/Class A Television and FM Translators/
Boosters, and CMRS Messaging (Paging), from regulatory fees because the 
categories account for such a small amount of regulatory fees. We seek 
comment on the benefits of discontinuing such collections. Commenters 
should discuss how other multi-year licenses should be treated with 
respect to a de minimis threshold. Since some licensees may hold many 
multi-year licenses, commenters should address whether it would be 
burdensome for such licensees to have some multi-year licenses above 
the de minimis threshold and some below.
---------------------------------------------------------------------------

    \58\ Our proposal would exclude these two categories from 
regulatory fees going forward, not just for FY 2014.
---------------------------------------------------------------------------

    39. The Commission tentatively concludes that eliminating 
categories from our regulatory fee schedule would be a permitted 
amendment as defined in section 9(b)(3) of the Act,\59\ and pursuant to 
section 9(b)(4)(B) must be submitted to Congress at least 90 days 
before it would become effective.\60\
---------------------------------------------------------------------------

    \59\ 47 U.S.C. 159(b)(3).
    \60\ 47 U.S.C. 159(b)(4)(B).
---------------------------------------------------------------------------

A Cap or Limitation on Increases of Regulatory Fees for FY 2014

    40. For FY 2014, unlike last year, it is unlikely regulatees will 
experience substantial increases in their regulatory fees.\61\ 
Nevertheless, out of an abundance of caution, we seek comment on the 
appropriateness of a cap to prevent, ``unexpected, substantial 
increases which could severely impact the economic wellbeing of these 
licensees.'' \62\ We seek comment on whether to continue to apply a cap 
of 7.5 percent, or a higher cap, such as 10 percent, on the amount by 
which regulatory fee rates increase in FY 2014 over the FY 2013 fee 
rates, before rounding FY 2014 rates, for any category resulting solely 
from the reallocations of FTEs or our reform measures adopted in the FY 
2013 Report and Order or in this proceeding.\63\ Therefore, if adopting 
our proposals would create a substantial increase in the fee rate for 
any category of regulatees, such an increased would be capped. We seek 
comment on the reasonableness of a 7.5 percent or 10 percent cap for FY 
2014. The Commission also invites proposals for higher or lower 
percentages. Commenters suggesting a different cap should explain how 
such proposals would prevent a severe impact on the economic wellbeing 
of licensees yet remain consistent with the goal to more accurately 
align FTEs with their areas of work. A cap limiting increases, if 
adopted, would be effective for FY 2014.
---------------------------------------------------------------------------

    \61\ See, e.g., Table 1 at paragraph 18.
    \62\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 1997, Report and Order, 62 FR 37414, paragraph 37 (July 11, 
1997) (FY 1997 Report and Order).
    \63\ This cap would apply to an increase to an entire fee 
category as a result of FTE reallocations or reform measures; such 
cap would not apply to limit changes in regulatory fees for a 
particular payor resulting from other factors, such as increased or 
decreased revenues, changes in subscriber numbers, number of 
licenses, etc. For example, UHF television fees in Markets 1-10 will 
increase from $38,000 (FY 2013) to $44,875 (FY 2014) as a result of 
our regulatory reform measure in combining the UHF and VHF fee 
categories.
---------------------------------------------------------------------------

Additional Regulatory Fee Reform

    41. We also seek comment on ways to further improve our regulatory 
fee process to make it less burdensome for all entities, specifically 
smaller entities. The Commission recognizes that the FCC is currently 
seeking comment on a Commission-wide ``Process Reform.'' \64\ Any 
comments relating specifically to the regulatory fee processes could 
also be filed in this docket for implementation for FY 2014 and the 
suggestions will be coordinated with the Process Reform proceeding. 
Commenters should suggest ways in which the Commission can further 
streamline its processes to make it easier for regulatory fee payors. 
Commenters should also address the timing of our annual regulatory fee 
process. Commenters should suggest ways in which the FCC can improve 
its Web site to make it easier for the public to obtain information 
about regulatory fees. Making regulatory fee waiver decisions public 
and accessible on our Web site is also a Commission proposal. We seek 
comment on the feasibility of an automated online waiver process. We 
seek comment on other ways to make information more accessible on the 
Commission's Web site.
---------------------------------------------------------------------------

    \64\ http://transition.fcc.gov/Daily_Releases/Daily_Business/2014/db0214/DA-14-199A2.pdf.
---------------------------------------------------------------------------

Combining Existing Regulatory Fee Categories

    42. In the FY 2013 NPRM, the Commission sought comment on combining 
wireline and wireless voice services into one category and assessing 
regulatory fees based on voice revenues for this new category.\65\ The 
Commission explained that because wireless services are comparable to 
wireline services, both services encompass similar regulatory policies 
and programs, such as universal service and number portability.\66\ The 
Independent Telephone and Telecommunications Alliance (ITTA) contends 
that wireline companies bear a disproportionately high burden in

[[Page 37990]]

regulatory fees because these companies no longer require the same 
expenditure of Commission resources as when regulatory fees were first 
adopted.\67\ ITTA further observes that issues addressed by FTEs in the 
Wireline Competition Bureau also affect the providers of other voice 
services, such as wireless and VoIP; for example, the Wireline 
Competition Bureau oversees contributions to the universal service fund 
by wireless providers and programs that benefit and provide 
disbursements to wireless providers, such as Lifeline, high-cost, and 
E-rate.\68\
---------------------------------------------------------------------------

    \65\ FY 2013 NPRM, 78 FR 34615, paragraph 18 (June 10, 2013) (FY 
2013 NPRM). See, e.g., ITTA Comments at 2-3 (filed June 19, 2013). 
ITTA's proposal was also discussed in the FY 2008 FNPRM, 73 FR 
50288-50289, paragraphs 16-17 (August 26, 2008 (FY 2008 FNPRM). In 
that proceeding, the Commission stated that ``ITTA recommends that 
the Commission extend the process by which it added interconnected 
Voice over Internet Protocol (`VoIP') providers to the ITSP category 
and also include wireless providers in the ITSP category.'' Id., 73 
FR 50288-50289, paragraph 16 (August 26, 2008) (FY 2008 FNPRM).
    \66\ FY 2013 NPRM, 78 FR 34615, paragraph 18 (June 10, 2013) (FY 
2013 NPRM).
    \67\ ITTA Comments at 4 (filed June 19, 2013).
    \68\ 47 CFR 54.706; Schools and Libraries Universal Support 
Mechanism, Eligible Services List, CC Docket No. 02-6, GN Docket No. 
09-51, Order, 28 FCC Rcd 14534 (WCB 1993); Federal Communications 
Commission Consumer Guide, Lifeline: Affordable Telephone Service 
for Income-Eligible Consumers (2013), available at http://transition.fcc.gov/cgb/consumerfacts/lllu.pdf; Connect America Fund, 
et al., WC Docket No. 10-90, Report and Order and Further Notice of 
Proposed Rulemaking, 77 FR 1637 (January 11, 2012), petitions for 
review pending sub nom, In Re Federal Communications Commission 11-
161, No. 11-9900 (10th Cir, filed December 18, 2011).
---------------------------------------------------------------------------

    43. We seek comment on combining wireless cellular services with 
the ITSP category to create one regulatory fee category whose 
regulatory fees are calculated based on the combined number of FTEs in 
the Commission's Wireline Competition Bureau and Wireless 
Telecommunications Bureau. We also seek comment on whether the 
Commission should combine any portion of other service categories with 
ITSP. Any combination of categories proposed by commenters should 
address the need to reconcile different assessment methodologies for 
ITSP, which pay fees based on revenues and wireless, which pay fees 
based on handsets. If ITSP is combined with another category, a uniform 
method would need to be applied to calculate the fees (e.g., revenues, 
subscribers, handsets, telephone numbers). Commenters should propose 
and discuss uniform methods for calculating regulatory fees in a 
combined regulatory fee category. Although revenues appear to be the 
most appealing methodology because this information is available in FCC 
Form 499 filings and is already used in other FCC programs to determine 
obligations, such as universal service contributions, commenters 
advocating using revenues for assessing regulatory fees in a 
combination of categories should take into account whether all revenues 
should be assessed, or whether only the proportion of revenues 
allocated to voice be used.\69\
---------------------------------------------------------------------------

    \69\ Commenters advocating using revenues for assessing 
regulatory fees in a combination of services should take into 
account that wireless carriers provide ``voice'' service without 
charge for customers with data plans.
---------------------------------------------------------------------------

    44. Depending on the revenues that are included in the base, 
combining wireless cellular and the historic ITSP fee categories 
together could result in a sizeable change in the wireline regulatory 
fee rate. We seek comment on transitioning to a combined category and 
capping any increase to 7.5 or 10 percent, annually. It is possible 
that by combining the wireless cellular and ITSP fee categories into a 
new category as proposed by ITTA, the effect of a cap on increases, and 
the reduction in fees for the wireline industry, could cause 
significant fee increases for the remaining regulatory fee categories. 
Alternatively, the Commission could transition by keeping wireless and 
ITSP separate categories based on revenue and phasing in an increase in 
wireless and decrease in ITSP fee rates before combining the two 
categories.\70\ We seek comment on ways to transition to a combined 
wireless and wireline category without causing hardship on the wireless 
industry and other fee categories.
---------------------------------------------------------------------------

    \70\ By way of illustration, if the increase were capped at 10%, 
the cellular wireless projected regulatory fee revenue would 
increase from approximately $58.9M to $64.8M for FY 2014, to $71.3M 
for FY 2015, to $78.4M for FY 2016, to $86.2 for FY 2017, and to 
$94.9M for FY 2018, at which point the two categories would be 
combined into one ITSP category. During this phase-in process, the 
wireline regulatory fee revenues would decrease each year, from 
approximately $131.2M to $125.3M for FY 2014, to $118.8M for FY 
2015, to $111.7M for FY 2016, to $103.8M for FY 2017, and to $95.2M 
in FY 2018.
---------------------------------------------------------------------------

    45. For example, if the cellular wireless and ITSP fee categories 
were combined into one fee category based on 499-A revenues, the fee 
rate and collections amount would be projected as follows.

                                           Table 3--Combined Wireless and ITSP Fee Rate and Projected Revenue
                                                                      [Without cap]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           % of rev.
            Revenue source (FCC Form 499-A 2013 revenue)              499-A projected    Combined rev.  Estim. revenue     collected      Diff. paid w/
                                                                          revenue        2014 fee rate     collected       (percent)      combined rate
--------------------------------------------------------------------------------------------------------------------------------------------------------
ITSP...............................................................    $38,800,000,000          .00287    $111,356,000           32.77     ($20,569,314)
Wireless (Cellular)................................................     27,715,500,000          .00287      79,543,485           23.41        20,139,689
                                                                    ------------------------------------------------------------------------------------
    Total..........................................................     66,515,500,000  ..............     190,899,485           56.18  ................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Note: The combined revenue fee rate of .00287 was calculated on an 
ITSP allocation (FTE) percentage of 38.60% and a cellular wireless 
percentage of 17.34%.
    46. The Commission tentatively concludes that combining two fee 
categories into one new fee category constitutes a reclassification of 
services in the regulatory fee schedule, and thus a permitted amendment 
as defined in section 9(b)(3) of the Act,\71\ which pursuant to section 
9(b)(4)(B) must be submitted to Congress at least 90 days before it 
becomes effective.\72\
---------------------------------------------------------------------------

    \71\ 47 U.S.C. 159(b)(3).
    \72\ 47 U.S.C. 159(b)(4)(B).
---------------------------------------------------------------------------

New Regulatory Fee Categories

4. DBS
    47. DBS providers are multichannel video programming distributors 
(MVPDs), pursuant to section 522(13) of the Act. These operators of 
U.S.-licensed geostationary space stations used to provide one way 
subscription television service to consumers in the United States pay a 
fee under the category ``Space Station (Geostationary Orbit)'' in the 
regulatory fee schedule. Such providers of one-way subscription 
satellite television service to consumers in the United States do not 
pay a per-subscriber regulatory fee. DBS services are similar to cable 
services because both services offer multi-channel video programming to 
end-users. DBS services, however, also differ from cable because 
programming is transmitted to end users by satellites stationed in 
geosynchronous orbit and not by terrestrial cable.
    48. Commenters, in response to the FY 2013 NPRM, proposed that DBS 
providers pay regulatory fees based on Media Bureau FTEs due to the 
similar regulatory work devoted to cable

[[Page 37991]]

operators and DBS providers.\73\ For example, DBS providers (and cable 
operators) are permitted to file program access complaints \74\ and 
complaints seeking relief under the retransmission consent good faith 
rules; \75\ and DBS providers are required to comply with Media Bureau 
oversight and regulation such as Commercial Advertisement Loudness 
Mitigation Act (CALM Act),\76\ the Twenty-First Century Video 
Accessibility Act (CVAA),\77\ and the closed captioning and video 
description rules.\78\ DBS providers argue, however, that they are not 
cable television operators and they are not subject to all of the 
regulations historically imposed on the cable industry by the Media 
Bureau; instead, their business model is based on satellite technology 
and is subject to satellite licensing rules through the International 
Bureau.\79\
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    \73\ Previously, when this issue was first proposed by the cable 
industry, the Commission declined to modify its methodology. See, 
e.g., FY 2013 NPRM, 78 FR 34627-34628, paragraphs 56-58 (June 10, 
2013) (FY 2013NPRM); FY 2008 FNPRM, 73 FR 50290, paragraph 26 
(August 26, 2008) (FY 2008 FNPRM). For FY 2014, a new category was 
adopted that includes cable television and IPTV. We now seek further 
comment whether DBS providers should also be included in the cable 
television and IPTV category.
    \74\ 47 U.S.C. 548; 47 CFR 76.1000-1004.
    \75\ 47 U.S.C. 325(b)(1), (3)(C)(ii); 47 CFR 76.65(b).
    \76\ See Implementation of the Commercial Advertisement, 
Loudness Mitigation (CALM) Act, Report and Order, 77 FR 40276 (July 
9, 2012) (2012).
    \77\ 47 U.S.C. 618(b).
    \78\ 47 CFR part 79.
    \79\ See, e.g., DIRECTV Comments at 8-17 (filed June 19, 2013); 
EchoStar Corporation and DISH Network Reply Comments at 4-6 (filed 
June 26, 2013).
---------------------------------------------------------------------------

    49. The Commission invites further comment on whether regulatory 
fees paid by DBS providers should be included in the cable television 
and IPTV category and assessed in the same manner as cable television 
system operators. We also seek comment on a new name for this category. 
For example, should this fee category be named ``MVPD'' or 
``subscription television fees'' or should other names be more 
appropriate for this category? We also ask commenters to further 
address the impact of this on the cable industry and the satellite 
industry.

                                              Table 4--Change in Cable/IPTV Regulatory Fees When DBS Added
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             FY 14 fee per                                   Projected
                Fee service                   Subscriber      subscriber       FY 14 fee not combined         revenue     Projected rev.    Diff. paid
                                                 count         combined                                      combined      not combined    with combined
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cable/IPTV Subscribers....................      65,400,000            $.68  $1.00 per subscriber........     $44,472,000     $65,400,000   ($20,928,000)
DBS Subscribers...........................      34,000,000             .68  114,025 per satellite.......      23,120,000       2,052,450      21,067,550
                                           -------------------------------------------------------------------------------------------------------------
    Total.................................      99,400,000  ..............  ............................      67,592,000      67,452,450  ..............
--------------------------------------------------------------------------------------------------------------------------------------------------------

    50. When DBS video providers are included in the cable and IPTV 
subscriber count, the FY 2014 regulatory fee rate for cable television 
(and IPTV and DBS video service) reduces from a fee rate of $1.00 per 
subscriber (cable and IPTV subscribers) to $.68 per subscriber. This 
would affect only the 18 satellites that provide video programming, 
EchoStar and DIRECTV. The GSO Space Stations will be reduced by 18 
satellites, and $2.5 million in projected revenue. This would add $2.5 
million to cable's projected revenue, i.e., 34,000,000 new subscribers, 
totaling 99,400,000 subscribers.
    51. One-way satellite television subscription service is provided 
by a variety of satellites in the United States.\80\ As a result, there 
are multiple definitions of DBS in the Commission's rules.\81\ 
Commenters should also explain how they would define DBS satellite 
television service providers for regulatory fee purposes.
---------------------------------------------------------------------------

    \80\ For example, DIRECTV operates a number of Ka-band 
satellites used to provide satellite television services to 
consumers in the United States in addition to its fleet of DBS 
satellites.
    \81\ Compare definition of DBS in Sec.  25.103 used for 
satellite licensing with the definition for DBS in Sec.  25.701 used 
for other public interest obligations. 47 CFR 25.103, 25.701.
---------------------------------------------------------------------------

    52. Commenters should also discuss the relationship between 
regulatory fees that would be paid by DBS satellite television service 
providers and the regulatory fees paid by operators of GSO satellites, 
which are used to provide satellite television service to consumers in 
the United States. At the same time, the Commission recognizes that 
non-U.S.-licensed satellites are also used to provide one-way satellite 
television service to consumers in the United States, but do not pay a 
regulatory fee.\82\ Commenters may wish to address this point in any 
discussion of the relationship between the two fee categories and the 
impact of this fee category on the satellite industry.
---------------------------------------------------------------------------

    \82\ See, e.g., EchoStar Satellite, LLC, Order and 
Authorization, 20 FCC Rcd 20083 (International Bureau 2005).
---------------------------------------------------------------------------

5. Non-U.S.-Licensed Space Stations Serving the United States
    53. To recover the costs associated with policy and rulemaking 
activities associated with space stations, Sec.  1.1156 of the 
Commission's rules includes ``Space Station (Geostationary Orbit)'' and 
``Space Stations (Non-Geostationary Orbit)'' in the regulatory fee 
schedule.\83\ These fees are assessed only for U.S.-licensed space 
stations. Regulatory fees are not assessed for non-U.S.-licensed space 
stations that have been granted access to the market in the United 
States.\84\ Previously, the Commission sought comment on a proposal to 
assess regulatory fees on non-U.S.-licensed space stations that had 
been granted market access in the United States, and this discussion is 
incorporated in this rulemaking by reference.\85\ Intelsat supports 
creating this new category.\86\ Most commenters addressing this issue 
do not support assessing regulatory fees on non-U.S.-licensed 
satellites and contend that the Commission does not have authority to 
do so; such fees would conflict with international treaties; and that a 
fee assessment could lead to a proliferation of fees from other 
countries that would have a serious impact on global satellite 
services.\87\
---------------------------------------------------------------------------

    \83\ 47 CFR 1.1156.
    \84\ This issue was raised in the FY 1999 Report and Order where 
the Commission observed that that the legislative history provides 
that only space stations licensed under Title III--which does not 
include non-U.S.-licensed satellite operators--may be subject to 
regulatory fees. Assessment and Collection of Regulatory Fees for 
Fiscal Year 1999, Report and Order, 64 FR 35837, paragraph 39 (July 
1, 1999) (FY 1999 Report and Order).
    \85\ See FY 2013 NPRM, 78 FR 34627, paragraphs 53-55 (June 10, 
2013) (FY 2013 NPRM).
    \86\ Intelsat Comments (June 19, 2013).
    \87\ See, e.g., EchoStar Corporation and DISH Network Comments 
at 15-18 (contending that the Commission lacks the authority to 
impose such regulatory fees and that doing so would also be 
inconsistent with established multilateral trade agreements) (June 
19, 2013); SES Americom, Inc., Inmarsat, Inc., and Telesat Canada 
Comments at 2-12) (June 19, 2013).
---------------------------------------------------------------------------

    54. The Commission also seeks additional comment on whether 
regulatory fees should be assessed on non-U.S. licensed space station 
operators granted access to the market

[[Page 37992]]

in the United States. Commenters should discuss whether the Commission 
should revisit the Commission's 1999 conclusion that the regulatory fee 
category for Space Stations (Geostationary Orbit) and Space Stations 
(Non-Geostationary Orbit) in Sec.  1.1156(a) of the Commission's rules 
covers only Title III license holders, including the Commission's 
finding that it ``cannot include operators of non-U.S.-licensed 
satellite space stations among regulatory fee payors.'' \88\ Commenters 
should also discuss any negative policy implications that may arise 
from taking such action, such as the likelihood that other countries 
will choose to assess fees on U.S.-licensed satellite systems. Table 5 
below illustrates the number of feeable (U.S. licensed) versus non-
feeable (non-U.S. licensed) satellites that require agency resources to 
be expended.
---------------------------------------------------------------------------

    \88\ FY 1999 Report and Order, 64 FR 35837, paragraph 39 (July 
1, 1999) (FY 1999 Report and Order).

               Table 5--Projected Number of Satellites That Are Regulatory Feeable and Non-Feeable
----------------------------------------------------------------------------------------------------------------
    Regulatory       Market access
  feeable GSO &        list (not       K-Band list (not    ISAT list (not     Permitted list       Total (not
 NGSO satellites        feeable)           feeable)           feeable)        (not feeable)         feeable)
----------------------------------------------------------------------------------------------------------------
            100                 19                  6                  6                 38                 69
----------------------------------------------------------------------------------------------------------------

    55. Commenters advocating the assessment of regulatory fees on non-
U.S.-licensed space stations granted access to the market in the United 
States should propose how the fees should be calculated and applied. 
Because market access is granted through a variety of procedural 
mechanisms, commenters should address each situation. For example, how 
would fees be calculated and applied in instances where the non-U.S.-
licensed space station operator accesses the U.S. market solely through 
grant of an application by a U.S.-licensed earth station operator 
identifying the non-U.S. licensed space station as a point of 
communication? Commenters should also provide specific information as 
to whether other countries already assess fees in one form or another 
on U.S.-licensed satellite systems accessing their markets.
    56. Based on Commission filings over the past three years, there 
were eleven applications filed each year for U.S. space station 
authorization, eight applications per year to add a non-U.S.-licensed 
space station to the Permitted List, and ten applications per year from 
U.S. earth stations to communicate with non-U.S.-licensed space 
stations that are not on the Permitted List. Thus, over half of the 
space station applications and notifications during this three year 
period pertained to non-U.S.-licensed space stations. As Intelsat 
observes, ``[t]he Satellite Division's work on behalf of non-U.S.-
licensed satellite operators with U.S. market access generates 
regulatory costs.'' \89\ As an alternative to adopting a new regulatory 
fee category for non-U.S.-licensed space stations, as discussed above, 
FTEs working on petitions or other matters involving non-U.S.-licensed 
satellites could be removed from the regulatory fee assessments for 
U.S.-licensed satellites and considered indirect for regulatory fee 
purposes. We seek comment on whether these FTEs should be considered 
indirect FTEs because their responsibilities concerning non-U.S.-
licensed satellite operators are of general benefit to the United 
States public, as well as other entities, including the United States 
government, who uses these satellite services. Indirect treatment may 
be further warranted because U.S. earth stations utilize these foreign 
satellites. We seek comment on whether these FTEs should be considered 
``indirect'' FTEs instead of direct International Bureau FTEs.
---------------------------------------------------------------------------

    \89\ Intelsat Comments at 4 (June 19, 2013).
---------------------------------------------------------------------------

6. Toll Free Numbers
    57. The Commission also seeks comment on whether toll free numbers, 
as defined in Sec.  52.101(f) of our rules,\90\ should be added to the 
regulatory fee schedule set forth in section 9. Toll free numbers are 
not currently subject to regulatory fees. These numbers are managed by 
a RespOrg, or Responsible Organization, for toll free subscribers. 
Commission resources are used in enforcement activities,\91\ as well as 
rulemakings and other policy making proceedings,\92\ pertaining to the 
use of these numbers. Historically, the Commission has not assessed 
regulatory fees on toll free numbers, under the rationale that the 
entities controlling the numbers, wireline and wireless carriers, were 
paying regulatory fees based on either revenues or subscribers.\93\ 
This may no longer be a realistic assumption today as there appear to 
be many toll free numbers controlled or managed by entities that are 
not carriers. We therefore seek comment on whether regulatory fees 
should be assessed on RespOrgs, for each toll free number managed by a 
RespOrg. We seek comment on whether regulatory fees should be assessed 
on working, assigned, and reserved toll free numbers. In addition, 
should regulatory fees be assessed for toll free numbers that are in 
the ``transit'' status, or any other status as defined in Sec.  52.103 
of the Commission's rules? Commenters should discuss an appropriate 
regulatory fee for this new category; e.g., one cent per month, or 
twelve cents per year. Using this figure, the amount of fees collected 
could total approximately $4 million per year, depending on how many 
toll free numbers continued to be managed by RespOrgs if the regulatory 
fee were to be imposed. The FTEs involved in toll free issues are 
primarily from the Wireline Competition Bureau; \94\ therefore, this 
additional fee would reduce the ITSP regulatory fee total.
---------------------------------------------------------------------------

    \90\ Toll free numbers are telephone numbers for which the toll 
charges for completed calls are paid by the toll free subscriber. 
See 47 CFR 52.101(f).
    \91\ See, e.g., Richard Jackowitz, IT Connect, Inc., Notice of 
Apparent Liability for Forfeiture, 29 FCC Rcd 3318 (2014); Richard 
Jackowitz, IT Connect, Inc., Notice of Apparent Liability for 
Forfeiture, 28 FCC Rcd 6692 (2013); Telseven, LLC, et al., Notice of 
Apparent Liability for Forfeiture, 27 FCC Rcd 15558 (2013).
    \92\ See, e.g., Toll Free Access Codes, Second Report and Order 
and Further Notice of Proposed Rulemaking, 62 FR 20126 (April 25, 
1997); 62 FR 20147 (April 25, 1997) (1997).
    \93\ See generally, Universal Service Contribution Methodology, 
Further Notice of Proposed Rulemaking, 77 FR 33923, paragraph 227 
(June 7, 2012) (2012).
    \94\ Enforcement Bureau staff also work on toll free issues.
---------------------------------------------------------------------------

7. Permitted Amendments
    58. The Commission tentatively concludes that including the three 
categories discussed above: DBS, non-U.S.-licensed space stations, and 
toll free numbers, in new or revised regulatory fee categories would 
constitute a reclassification of services in the regulatory fee 
schedule as defined in section 9(b)(3) of the Act,\95\ and

[[Page 37993]]

pursuant to section 9(b)(4)(B) must be submitted to Congress at least 
90 days before it becomes effective.\96\
---------------------------------------------------------------------------

    \95\ 47 U.S.C. 159(b)(3).
    \96\ 47 U.S.C. 159(b)(4)(B).
---------------------------------------------------------------------------

VIII. Procedural Matters

Payment of Regulatory Fees

    59. In order to help regulatory fee payors better understand the 
process for payment of regulatory fees, the Commission restates 
important information below.
1. Manner of Payment
    60. As of October 1, 2013, the Commission no longer accepts checks 
(including cashier's checks) and the accompanying hardcopy forms (e.g., 
Form 159's, Form 159-B's, Form 159-E's, Form 159-W's) for payment of 
regulatory fees. All payments must now be made by online ACH payment, 
online credit card, or wire transfer. Any other form of payment (e.g., 
checks) will be rejected and sent back to the payor. So that the 
Commission can associate the wire payment with the correct regulatory 
fee information, an accompanying Form 159-E must still be transmitted 
via fax for wire transfers.\97\
---------------------------------------------------------------------------

    \97\ We incorporate this change into our rules at Table F.
---------------------------------------------------------------------------

2. Lock Box Bank
    61. All lock box payments to the Commission for FY 2014 will be 
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC. 
During the fee season for collecting FY 2014 regulatory fees, 
regulatees can pay their fees by credit card through Pay.gov,\98\ by 
ACH or debit card,\99\ or by wire transfer. Additional payment options 
and instructions are posted at http://transition.fcc.gov/fees/regfees.html.
---------------------------------------------------------------------------

    \98\ In accordance with U.S. Treasury Financial Manual 
Announcement No. A-2012-02, the U.S. Treasury will reject credit 
card transactions greater than $49,999.99 from a single credit card 
in a single day. This includes online transactions conducted via 
Pay.gov, transactions conducted via other channels, and direct-over-
the counter transactions made at a U.S. Government facility. 
Individual credit card transactions larger than the $49,999.99 limit 
may not be split into multiple transactions using the same credit 
card, whether or not the split transactions are assigned to multiple 
days. Splitting a transaction violates card network and Financial 
Management Service (FMS) rules. However, credit card transactions 
exceeding the daily limit may be split between two or more different 
credit cards. Other alternatives for transactions exceeding the 
$49,999.99 credit card limit include payment by check, electronic 
debit from your bank account, and wire transfer.
    \99\ In accordance with U.S. Treasury Financial Manual 
Announcement No. A-2012-02, the maximum dollar-value limit for debit 
card transactions will be eliminated. It should also be noted that 
only Visa and MasterCard branded debit cards are accepted by 
Pay.gov.
---------------------------------------------------------------------------

3. Receiving Bank for Wire Payments
    62. The receiving bank for all wire payments is the Federal Reserve 
Bank, New York, New York (TREAS NYC). So that the processing bank can 
properly associate the wire payment with the fee payment details, 
regulatees making a wire transfer 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. The use 
of the Form 159-E is permissible with wire transfer. 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://transition.fcc.gov/fees/wiretran.html.
4. De Minimis Regulatory Fees
    63. Regulatees whose total FY 2014 regulatory fee liability, 
including all categories of fees for which payment is due, is less than 
an established de minimis amount are exempted from payment of FY 2014 
regulatory fees. The de minimis amount to date has been $10 (ten 
dollars); however, such amount could change as a result of this Notice.
5. Standard Fee Calculations
    64. 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, 2013 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, 2013. In 
instances where a permit or license is transferred or assigned after 
October 1, 2013, 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, 
2013. In instances where a permit or license is transferred or assigned 
after October 1, 2013, responsibility for payment rests with the holder 
of the permit or license as of the fee due date. Audio bridging service 
providers are included in this category.\100\
---------------------------------------------------------------------------

    \100\ Audio bridging services are toll teleconferencing 
services.
---------------------------------------------------------------------------

     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, 2013. The number of subscribers or 
telephone numbers on December 31, 2013 will be used as the basis for 
calculating the fee payment. In instances where a permit or license is 
transferred or assigned after October 1, 2013, 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 B) 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. These fee categories are included 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 2014.
     Multichannel Video Programming Distributor Services (cable 
television operators and CARS licensees) and Internet Protocol 
Television (IPTV): Regulatory fees must be paid for the number of basic 
cable television subscribers as of December 31, 2013.\101\ In addition, 
beginning in FY 2014, IPTV providers that had subscribers as of 
December 31, 2013 are also obligated to pay regulatory fees. Holders of 
CARS licenses that were granted on or before October 1, 2013 must also 
pay regulatory fees. In instances where a permit or license is 
transferred or assigned after October 1, 2013, responsibility for 
payment rests with the holder of the permit or license as of the fee 
due date.
---------------------------------------------------------------------------

    \101\ Cable television system operators should compute their 
number of basic subscribers as follows: Number of single family 
dwellings + number of individual households in multiple dwelling 
unit (apartments, condominiums, mobile home parks, etc.) paying at 
the basic subscriber rate + bulk rate customers + courtesy and free 
service. Note: Bulk-Rate Customers = Total annual bulk-rate charge 
divided by basic annual subscription rate for individual households. 
Operators may base their count on ``a typical day in the last full 
week'' of December 2013, rather than on a count as of December 31, 
2013.
---------------------------------------------------------------------------

     International Services: Regulatory fees must be paid for 
earth stations that were authorized (licensed) on or before October 1, 
2013. Geostationary orbit

[[Page 37994]]

space stations and non-geostationary orbit satellite systems that were 
licensed and operational on or before October 1, 2013 are subject to 
regulatory fees. In instances where a permit or license is transferred 
or assigned after October 1, 2013, 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, 2013. In instances where a license is transferred or assigned after 
October 1, 2013, responsibility for payment rests with the holder of 
the license as of the fee due date. For regulatory fee purposes, the 
allocation in FY 2014 will remain at 87.6 percent for submarine cable 
and 12.4 percent for satellite/terrestrial facilities.
     International Services: Terrestrial and Satellite 
Services: Regulatory fees for 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, 2013 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, 2013. Whether circuits are used specifically for voice or data is 
not relevant for purposes of determining that they are active circuits. 
In instances where a permit or license is transferred or assigned after 
October 1, 2013, 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 2014 will remain at 87.6 percent for 
submarine cable and 12.4 percent for satellite/terrestrial facilities.
     Clarification regarding DTV Replacement Translators. 
Because these TV translators do not extend the coverage of the primary 
station, but operate solely within the primary station's protected 
contour, these special TV translators are deemed to be ``replacement 
translators'' and are not subject to a separate TV translator 
regulatory fee.
     Clarification regarding TV Translator/Booster Facilities 
Operating in Analog, Digital, or in an Analog/Digital Simulcast Mode. 
With respect to Low Power, Class A, and TV Translator/Booster 
facilities that may be operating in analog, digital, or in an analog 
and digital simulcast mode, the Commission assesses a fee for each 
facility operating either in an analog or digital mode. In instances in 
which a licensee is simulcasting in both analog and digital modes, a 
single regulatory fee will be assessed for the analog facility and its 
corresponding digital component, but not for both facilities.

Enforcement

    65. To be considered timely, regulatory fee payments must be 
received and stamped at the lockbox bank by the due date of regulatory 
fees. 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.\102\ 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 \103\ and in the Debt Collection Improvement Act of 
1996 (DCIA).\104\ The Commission also assesses 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.\105\ 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 payor 
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.
---------------------------------------------------------------------------

    \102\ 47 U.S.C. 159(c).
    \103\ See 47 CFR 1.1910.
    \104\ 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, 69 FR 27843 (May 17, 2004) (2004); 47 
CFR part 1, subpart O, Collection of Claims Owed the United States.
    \105\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------

    66. The Commission will withhold action on any application 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.\106\ Failure to pay regulatory fees may also result in the 
initiation of a proceeding to revoke any and all authorizations held by 
the entity responsible for paying the delinquent fee(s).
---------------------------------------------------------------------------

    \106\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
---------------------------------------------------------------------------

IX. Additional Tables

Table A--Calculation of FY 2014 Revenue Requirements and Pro-Rata Fees

 Regulatory Fees for the First Ten Categories Below Are Collected by the Commission in Advance To Cover the Term of the License and Are Submitted at the
                                                              Time the Application Is Filed
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              FY 2013      Pro-rated FY    Computed new   Rounded new FY
               Fee category                   FY 2014 payment     Years       revenue      2014 revenue       FY 2014          2014         Expected FY
                                                   units                     estimate       requirement   regulatory fee  regulatory fee   2014 revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use).....................             1,700          10         560,000         578,582       34               35               595,000
PLMRS (Shared use)........................            30,000          10       2,250,000       2,768,930        9               10             3,000,000
Microwave.................................            17,000          10       2,640,000       2,727,603       16               15             2,550,000
218-219 MHz (Formerly IVDS)...............                 5          10           3,750           4,133       83               85                 4,250
Marine (Ship).............................             5,200          10         655,000         909,201       17               15               780,000
GMRS......................................             8,900           5         197,500         330,619        7                5               222,500
Aviation (Aircraft).......................             4,200          10         290,000         413,273       10               10               420,000
Marine (Coast)............................               300          10         156,750         165,309       55               55               165,000

[[Page 37995]]

 
Aviation (Ground).........................               450          10         135,000         165,309       37               35               157,500
Amateur Vanity Call Signs.................            11,500          10         230,230         247,964        2.16             2.16            248,400
AM Class A \4a\...........................                67           1         286,000         276,418    4,126            4,125               276,375
AM Class B \4b\...........................             1,483           1       3,435,250       3,439,404    2,319            2,325             3,447,975
AM Class C \4c\...........................               882           1       1,201,500       1,227,453    1,392            1,400             1,234,800
AM Class D \4d\...........................             1,522           1       3,862,500       4,071,166    2,675            2,675             4,071,350
FM Classes A, B1 & C3 \4e\................             3,107           1       8,379,375       8,528,907    2,745            2,750             8,544,250
FM Classes B, C, C0, C1 & C2 \4f\.........             3,139           1      10,597,500      10,461,550    3,333            3,325            10,437,175
AM Construction Permits...................                30           1          30,090          17,700      590              590                17,700
FM Construction Permits \1\...............               185           1         142,500         138,750      750              750               138,750
Satellite TV..............................               127           1         190,625         197,208    1,553            1,550               196,850
Satellite TV Construction Permit..........                 3           1           2,880           3,944    1,315            1,325                 3,975
Digital TV Markets 1-10...................               138           1       6,235,725       6,193,664   44,882           44,875             6,192,750
Digital TV Markets 11-25..................               138           1       5,636,875       5,838,689   42,309           42,300             5,837,400
Digital TV Markets 26-50..................               182           1       4,965,225       4,931,531   27,096           27,100             4,932,200
Digital TV Markets 51-100.................               290           1       4,645,275       4,547,390   15,681           15,675             4,545,750
Digital TV Remaining Markets..............               380           1       1,769,975       1,814,316    4,775            4,775             1,814,500
Digital TV Construction Permits1..........                 5           1          20,950          23,875    4,775            4,775                23,875
Broadcast Auxiliaries.....................            25,800           1         254,000         315,533       12.23            10               258,000
LPTV/Translators/Boosters/Class A TV......             3,830           1       1,527,250       1,577,667      412              410             1,570,300
CARS Stations.............................               325           1         165,750         197,262      607              605               196,625
Cable TV Systems, including IPTV..........        65,400,000           1      61,200,000      65,293,695         .9984           1.00         65,400,000
Interstate Telecommunication Service         $38,800,000,000           1     135,330,000     131,835,683        0.003398         0.00340     131,920,000
 Providers................................
CMRS Mobile Services (Cellular/Public            330,000,000           1      58,680,000      60,312,520        0.1828           0.18         59,400,000
 Mobile)..................................
CMRS Messag. Services.....................         2,900,000           1         240,000         232,000        0.0800           0.080           232,000
BRS \2\...................................               900           1         469,200         646,718      719              720               648,000
LMDS......................................               190           1          86,700         136,529      719              720               136,800
Per 64 kbps Int'l Bearer Circuits.........         4,484,000           1       1,032,277       1,073,199         .2393            .24          1,076,160
Terrestrial (Common) & Satellite (Common &
 Non-Common)..............................
Submarine Cable Providers (see chart in                   39.19        1       8,530,139       7,554,010  192,766          192,775             7,554,370
 Appendix C) \3\..........................
Earth Stations............................             3,400           1         935,000         829,539      244              245               833,000
Space Stations (Geostationary)............                94           1      12,101,700      10,717,648  114,018          114,025            10,716,750
Space Stations (Non-Geostationary.........                 6           1         899,250         796,358  132,726          132,725               796,350
****** Total Estimated Revenue to be        ...................  .......     339,965,741     341,541,247  ..............  ..............     340,598,280
 Collected................................
****** Total Revenue Requirement..........  ...................  .......     339,844,000     339,844,000  ..............  ..............     339,844,000

[[Page 37996]]

 
Difference................................  ...................  .......         121,741       1,697,247  ..............  ..............         754,280
--------------------------------------------------------------------------------------------------------------------------------------------------------
\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, paragraph 6 (2004).
\3\ The chart at the end of Table B lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from
  the adoption of the Submarine Cable Order.
\4\ The fee amounts listed in the column entitled ``Rounded New FY 2013 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
  service. The actual FY 2014 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table B.

Table B--FY 2014 Schedule of Regulatory Fees

 Regulatory Fees for the First Eleven Categories Below Are Collected by
   the Commission in Advance To Cover the Term of the License and Are
             Submitted at the Time the Application Is Filed
------------------------------------------------------------------------
                                                             Annual
                     Fee category                        regulatory fee
                                                           (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)..          35.
Microwave (per license) (47 CFR part 101).............          15
218-219 MHz (Formerly Interactive Video Data Service)           85
 (per license) (47 CFR part 95).......................
Marine (Ship) (per station) (47 CFR part 80)..........          15
Marine (Coast) (per license) (47 CFR part 80).........          55
General Mobile Radio Service (per license) (47 CFR               5
 part 95).............................................
Rural Radio (47 CFR part 22) (previously listed under           10
 the Land Mobile category)............................
PLMRS (Shared Use) (per license) (47 CFR part 90).....          10
Aviation (Aircraft) (per station) (47 CFR part 87)....          10
Aviation (Ground) (per license) (47 CFR part 87)......          35
Amateur Vanity Call Signs (per call sign) (47 CFR part           2.16
 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               720
 license) (47 CFR part 27)............................         720
Local Multipoint Distribution Service (per call sign)
 (47 CFR, part 101)...................................
AM Radio Construction Permits.........................         590
FM Radio Construction Permits.........................         750
Digital TV (47 CFR part 73) VHF and UHF Commercial:     ................
    Markets 1-10......................................      44,875
    Markets 11-25.....................................      42,300
    Markets 26-50.....................................      27,100
    Markets 51-100....................................      15,675
    Remaining Markets.................................       4,775
    Construction Permits..............................       4,775
Satellite Television Stations (All Markets)...........       1,550
Construction Permits--Satellite Television Stations...       1,325
Low Power TV, Class A TV, TV/FM Translators & Boosters         410
 (47 CFR part 74).....................................
Broadcast Auxiliaries (47 CFR part 74)................          10
CARS (47 CFR part 78).................................         605
Cable Television Systems (per subscriber) (47 CFR part           1.00
 76), Including IPTV..................................
Interstate Telecommunication Service Providers (per               .00340
 revenue dollar)......................................
Earth Stations (47 CFR part 25).......................         245
Space Stations (per operational station in                 114,025
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100).................................................
Space Stations (per operational system in non-             132,725
 geostationary orbit) (47 CFR part 25)................
International Bearer Circuits--Terrestrial/Satellites             .24
 (per 64KB circuit)...................................
International Bearer Circuits--Submarine Cable........  See Table Below
------------------------------------------------------------------------

FY 2014 Schedule of Regulatory Fees: Maintain Allocation (continued)

[[Page 37997]]



                                      FY 2014 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                FM         FM
                                                 AM Class   AM Class   AM Class   AM Class   Classes    Classes
               Population Served                    A          B          C          D       A, B1 &   B, C, C0,
                                                                                                C3      C1 & C2
----------------------------------------------------------------------------------------------------------------
<=25,000......................................       $775       $645       $590       $670       $750       $925
25,001--75,000................................      1,550      1,300        900      1,000      1,500      1,625
75,001--150,000...............................      2,325      1,625      1,200      1,675      2,050      3,000
150,001--500,000..............................      3,475      2,750      1,800      2,025      3,175      3,925
500,001--1,200,000............................      5,025      4,225      3,000      3,375      5,050      5,775
1,200,001--3,000,000..........................      7,750      6,500      4,500      5,400      8,250      9,250
>3,000,000....................................      9,300      7,800      5,700      6,750     10,500     12,025
----------------------------------------------------------------------------------------------------------------

FY 2014 Schedule of Regulatory Fees

             International Bearer Circuits--Submarine Cable
------------------------------------------------------------------------
    Submarine cable systems
  (capacity as of December 31,     Fee amount            Address
             2013)
------------------------------------------------------------------------
< 2.5 Gbps.....................         $12,050  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
2.5 Gbps or greater, but less            24,100  FCC, International,
 than 5 Gbps.                                     P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
5 Gbps or greater, but less              48,200  FCC, International,
 than 10 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
10 Gbps or greater, but less             96,400  FCC, International,
 than 20 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
20 Gbps or greater.............         192,775  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
------------------------------------------------------------------------

Table C--Sources of Payment Unit Estimates for FY 2014

    In order to calculate individual service fees for FY 2014, the 
Commission adjusted FY 2013 payment units for each service to more 
accurately reflect expected FY 2014 payment liabilities. These units 
were obtained through a variety of means. For example, the Commission 
used licensee data bases, actual prior year payment records and 
industry and trade association projections when available. Databases 
that were 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.
    The Commission sought verification for these estimates from 
multiple sources and, in all cases, the Commission compared FY 2014 
estimates with actual FY 2013 payment units to ensure that its revised 
estimates were reasonable. Where appropriate, final estimates were 
adjusted and/or rounded to take into consideration the fact that 
certain variables that impact 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 2014 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 the Commission notes, for example, that its estimated FY 
2014 payment units are based on FY 2013 actual payment units, the 
Commission does not necessarily mean that our FY 2014 projection is 
exactly the same number as in FY 2013. The FY 2014 projection has 
either been rounded or adjusted slightly to account for these 
variables.

------------------------------------------------------------------------
                                             Sources of payment unit
              Fee category                          estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, 218-219    Based on Wireless
 MHz, Marine (Ship & Coast), Aviation     Telecommunications Bureau
 (Aircraft & Ground), GMRS, Amateur       (``WTB'') projections of new
 Vanity Call Signs, Domestic Public       applications and renewals
 Fixed.                                   taking into consideration
                                          existing 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 13 payment
                                          data.
CMRS Messaging Services................  Based on WTB reports, and FY 13
                                          payment data.
AM/FM Radio Stations...................  Based on CDBS data, adjusted
                                          for exemptions, and actual FY
                                          2013 payment units.
Digital TV Stations (Combined VHF/UHF    Based on CDBS data, adjusted
 units).                                  for exemptions, and actual FY
                                          2013 payment units.
AM/FM/TV Construction Permits..........  Based on CDBS data, adjusted
                                          for exemptions, and actual FY
                                          2013 payment units.
LPTV, Translators and Boosters, Class A  Based on CDBS data, adjusted
 Television.                              for exemptions, and actual FY
                                          2013 payment units.
Broadcast Auxiliaries..................  Based on actual FY 2013 payment
                                          units.
BRS (formerly MDS/MMDS) LMDS...........  Based on WTB reports and actual
                                          FY 2013 payment units.
                                         Based on WTB reports and actual
                                          FY 2013 payment units.
Cable Television Relay Service (CARS)    Based on data from Media
 Stations.                                Bureau's COALS database and
                                          actual FY 2013 payment units.

[[Page 37998]]

 
Cable Television System Subscribers,     Based on publicly available
 Including IPTV Subscribers.              data sources for estimated
                                          subscriber counts and actual
                                          FY 2013 payment units.
Interstate Telecommunication Service     Based on FCC Form 499-Q data
 Providers.                               for the four quarters of
                                          calendar year 2013, the
                                          Wireline Competition Bureau
                                          projected the amount of
                                          calendar year 2013 revenue
                                          that will be reported on 2014
                                          FCC Form 499-A worksheets in
                                          April, 2014.
Earth Stations.........................  Based on International Bureau
                                          (``IB'') licensing data and
                                          actual FY 2013 payment units.
Space Stations (GSOs & NGSOs)..........  Based on IB data reports and
                                          actual FY 2013 payment units.
International Bearer Circuits..........  Based on IB reports and
                                          submissions by licensees,
                                          adjusted as necessary.
Submarine Cable Licenses...............  Based on IB license
                                          information.
------------------------------------------------------------------------

Table D--Factors, Measurements, and Calculations That Determines 
Station Signal Contours and Associated Population Coverages

AM Stations
    For stations with nondirectional daytime antennas, the theoretical 
radiation was used at all azimuths. For stations with directional 
daytime antennas, specific information on each day tower, including 
field ratio, phase, spacing, and orientation was retrieved, as well as 
the theoretical pattern root-mean-square of the radiation in all 
directions in the horizontal plane (``RMS'') figure (milliVolt per 
meter (mV/m) @1 km) for the antenna system. The standard, or augmented 
standard if pertinent, horizontal plane radiation pattern was 
calculated using techniques and methods specified in 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 2010 block centroids were contained 
in the polygon. (A block centroid is the center point of a small area 
containing population as computed by the U.S. Census Bureau.) The sum 
of the population figures for all enclosed blocks represents the total 
population for the predicted principal community coverage area.
FM Stations
    The greater of the horizontal or vertical effective radiated power 
(ERP) (kW) and respective height above average terrain (HAAT) (m) 
combination was used. Where the antenna height above mean sea level 
(HAMSL) was available, it was used in lieu of the average HAAT figure 
to calculate specific HAAT figures for each of 360 radials under study. 
Any available directional pattern information was applied as well, to 
produce a radial-specific ERP figure. The HAAT and ERP figures were 
used in conjunction with the Field Strength (50-50) propagation curves 
specified in 47 CFR 73.313 of the Commission's rules to predict the 
distance to the principal community (70 dBu (decibel above 1 microVolt 
per meter) or 3.17 mV/m) contour for each of the 360 radials. The 
resulting distance to principal community contours were used to form a 
geographical polygon. Population counting was accomplished by 
determining which 2010 block centroids were contained in the polygon. 
The sum of the population figures for all enclosed blocks represents 
the total population for the predicted principal community coverage 
area.

Table E--Revised FTE (as of 9/30/12) Allocations, Fee Rate Increases 
Capped at 7.5%

                   FY 2013 Schedule of Regulatory Fees
 [Regulatory fees for the first eleven categories below are collected by
   the Commission in advance to cover the term of the license and are
            submitted at the time the application is filed.]
------------------------------------------------------------------------
                                                       Annual regulatory
                     Fee category                       fee  (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).           40
Microwave (per license) (47 CFR part 101)............           20
218-219 MHz (Formerly Interactive Video Data Service)           75
 (per license) (47 CFR part 95)......................
Marine (Ship) (per station) (47 CFR part 80).........           10
Marine (Coast) (per license) (47 CFR part 80)........           55
General Mobile Radio Service (per license) (47 CFR               5
 part 95)............................................
Rural Radio (47 CFR part 22) (previously listed under           15
 the Land Mobile category)...........................
PLMRS (Shared Use) (per license) (47 CFR part 90)....           15
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                1.61
 part 97)............................................
CMRS Mobile/Cellular Services (per unit) (47 CFR                  .18
 parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20,              .08
 22, 24 and 90)......................................
Broadband Radio Service (formerly MMDS/MDS) (per               510
 license) (47 CFR part 27)...........................
Local Multipoint Distribution Service (per call sign)          510
 (47 CFR, part 101)..................................
AM Radio Construction Permits........................          590
FM Radio Construction Permits........................          750
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10.....................................       86,075

[[Page 37999]]

 
    Markets 11-25....................................       78,975
    Markets 26-50....................................       42,775
    Markets 51-100...................................       22,475
    Remaining Markets................................        6,250
    Construction Permits.............................        6,250
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10.....................................       38,000
    Markets 11-25....................................       35,050
    Markets 26-50....................................       23,550
    Markets 51-100...................................       13,700
    Remaining Markets................................        3,675
    Construction Permits.............................        3,675
Satellite Television Stations (All Markets)..........        1,525
Construction Permits--Satellite Television Stations..          960
Low Power TV, Class A TV, TV/FM Translators &                  410
 Boosters (47 CFR part 74)...........................
Broadcast Auxiliaries (47 CFR part 74)...............           10
CARS (47 CFR part 78)................................          510
Cable Television Systems (per subscriber) (47 CFR                1.02
 part 76)............................................
Interstate Telecommunication Service Providers (per               .00347
 revenue dollar).....................................
Earth Stations (47 CFR part 25)......................          275
Space Stations (per operational station in                 139,100
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station)...............
Space Stations (per operational system in non-             149,875
 geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits--Terrestrial/Satellites             .27
 (per 64KB circuit)..................................
International Bearer Circuits--Submarine Cable.......          (*)
------------------------------------------------------------------------
* See table below.

FY 2013 Schedule of Regulatory Fees: Fee Rate Increases Capped at 7.5% 
(continued)

                                      FY 2013 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                           FM
                                                                                                FM      Classes
               Population served                 AM Class   AM Class   AM Class   AM Class   Classes     B, C,
                                                    A          B          C          D       A, B1 &    C0, C1 &
                                                                                                C3         C2
----------------------------------------------------------------------------------------------------------------
<=25,000......................................       $775       $645       $590       $670       $750       $925
25,001-75,000.................................      1,550      1,300        900      1,000      1,500      1,625
75,001-150,000................................      2,325      1,625      1,200      1,675      2,050      3,000
150,001-500,000...............................      3,475      2,750      1,800      2,025      3,175      3,925
500,001-1,200,000.............................      5,025      4,225      3,000      3,375      5,050      5,775
1,200,001-3,000,000...........................      7,750      6,500      4,500      5,400      8,250      9,250
>3,000,000....................................      9,300      7,800      5,700      6,750     10,500     12,025
----------------------------------------------------------------------------------------------------------------

FY 2013 Schedule of Regulatory Fees: Fee Rate Increases Capped at 7.5%

             International Bearer Circuits--Submarine Cable
------------------------------------------------------------------------
    Submarine cable systems
  (capacity as of December 31,     Fee amount            Address
             2012)
------------------------------------------------------------------------
< 2.5 Gbps.....................         $13,600  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
2.5 Gbps or greater, but less            27,200  FCC, International,
 than 5 Gbps.                                     P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
5 Gbps or greater, but less              54,425  FCC, International,
 than 10 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
10 Gbps or greater, but less            108,850  FCC, International,
 than 20 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
20 Gbps or greater.............         217,675  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
------------------------------------------------------------------------


[[Page 38000]]

X. Initial Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\107\ the 
Commission prepared this Initial Regulatory Flexibility Analysis (IRFA) 
of the possible significant economic impact on small entities by the 
policies and rules proposed in this Notice of Proposed Rulemaking, 
Second Further Notice of Proposed Rulemaking, and Order (FNPRM). 
Written comments are requested on this IRFA. Comments must be 
identified as responses to the IRFA and must be filed by the deadline 
for comments on this FNPRM. The Commission will send a copy of the 
FNPRM, including the IRFA, to the Chief Counsel for Advocacy of the 
Small Business Administration (SBA).\108\ In addition, the FNPRM and 
IRFA (or summaries thereof) will be published in the Federal 
Register.\109\
---------------------------------------------------------------------------

    \107\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended 
by the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
    \108\ 5 U.S.C. 603(a).
    \109\ Id.
---------------------------------------------------------------------------

Need for, and Objectives of, the Notice

    2. The FNPRM seeks comment concerning adoption and implementation 
of proposals to reallocate regulatory fees to more accurately reflect 
the subject areas worked on by current Commission FTEs for FY 2014. As 
such, the Commission seeks comment on, among other things, (1) adopting 
a regulatory fee obligation for AM Expanded Band radio stations; (2) 
reallocating certain indirect FTEs in the Enforcement Bureau and/or the 
Consumer & Governmental Affairs Bureau and certain direct FTEs in the 
International Bureau; (3) periodically updating FTE allocations; (4) 
applying a 7.5 or 10 percent cap on any regulatory fee increases for FY 
2014; (5) improving the Commission's Web site for regulatory fee 
payors; (6) adopting a higher de minimis threshold to provide relief 
for small carriers; and (7) eliminating certain regulatory fee 
categories.
    4. The FNPRM also seeks comment concerning adoption and 
implementation of proposals which include: (1) Combining Interstate 
Telecommunications Service Providers (ITSPs) with wireless 
telecommunications services, or other services such as cable television 
services, and using revenues, subscribers, telephone numbers, or 
another means as the basis for calculating regulatory fees; and (2) 
creating new categories for non-U.S.-Licensed Space Stations; Direct 
Broadcast Satellite service; and toll free numbers in our regulatory 
fee process. We invite comment on these topics to better inform the 
Commission concerning whether and/or how these services should be 
assessed under our regulatory fee methodology in future years.

II. Legal Basis

    5. This action, including publication of proposed rules, is 
authorized under sections (4)(i) and (j), 9, and 303(r) of the 
Communications Act of 1934, as amended.\110\
---------------------------------------------------------------------------

    \110\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
---------------------------------------------------------------------------

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

    6. 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.\111\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \112\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\113\ 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.\114\
---------------------------------------------------------------------------

    \111\ 5 U.S.C. 603(b)(3).
    \112\ 5 U.S.C. 601(6).
    \113\ 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.''
    \114\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    7. Small Businesses. Nationwide, there are a total of approximately 
27.9 million small businesses, according to the SBA.\115\
---------------------------------------------------------------------------

    \115\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' http://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf.
---------------------------------------------------------------------------

    8. Wired Telecommunications Carriers. The SBA has developed a small 
business size standard for Wired Telecommunications Carriers, which 
consists of all such companies having 1,500 or fewer employees. Census 
data for 2007 shows that there were 31,996 establishments that operated 
that year. Of this total, 1,818 operated with more than 100 employees, 
and 30,178 operated with fewer than 100 employees.\116\ Thus, under 
this size standard, the majority of firms can be considered small.
---------------------------------------------------------------------------

    \116\ See id.
---------------------------------------------------------------------------

    9. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to local exchange services. The closest applicable size 
standard under SBA rules is for Wired Telecommunications Carriers. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees.\117\ According to Commission data, census data for 
2007 shows that there were 31,996 establishments that operated that 
year. Of this total, 1,818 operated with more than 100 employees, and 
30,178 operated with fewer than 100 employees.\118\ The Commission 
estimates that most providers of local exchange service are small 
entities that may be affected by the rules and policies proposed in the 
FNPRM.
---------------------------------------------------------------------------

    \117\ 13 CFR 121.201, NAICS code 517110.
    \118\ See id.
---------------------------------------------------------------------------

    10. Incumbent LECs. Neither the Commission nor the SBA has 
developed a small business size standard specifically for incumbent 
local exchange services. The closest applicable 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.\119\ According to Commission data, 1,307 carriers reported 
that they were incumbent local exchange service providers.\120\ Of this 
total, an estimated 1,006 have 1,500 or fewer employees and 301 have 
more than 1,500 employees.\121\ Consequently, the Commission estimates 
that most providers of incumbent local exchange service are small 
businesses that may be affected by the rules and policies proposed in 
the FNPRM.
---------------------------------------------------------------------------

    \119\ 13 CFR 121.201, NAICS code 517110.
    \120\ See Trends in Telephone Service, Federal Communications 
Commission, Wireline Competition Bureau, Industry Analysis and 
Technology Division at Table 5.3 (September 2010) (Trends in 
Telephone Service).
    \121\ Id.
---------------------------------------------------------------------------

    11. Competitive Local Exchange Carriers (Competitive LECs), 
Competitive Access Providers (CAPs), Shared-Tenant Service Providers, 
and Other Local Service Providers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for these 
service providers. The appropriate size standard under SBA rules is for 
the category Wired Telecommunications Carriers. Under that size 
standard, such a

[[Page 38001]]

business is small if it has 1,500 or fewer employees.\122\ According to 
Commission data, 1,442 carriers reported that they were engaged in the 
provision of either competitive local exchange services or competitive 
access provider services.\123\ Of these 1,442 carriers, an estimated 
1,256 have 1,500 or fewer employees and 186 have more than 1,500 
employees.\124\ In addition, 17 carriers have reported that they are 
Shared-Tenant Service Providers, and all 17 are estimated to have 1,500 
or fewer employees.\125\ In addition, 72 carriers have reported that 
they are Other Local Service Providers.\126\ Of this total, 70 have 
1,500 or fewer employees and two have more than 1,500 employees.\127\ 
Consequently, the Commission estimates that most providers of 
competitive local exchange service, competitive access providers, 
Shared-Tenant Service Providers, and Other Local Service Providers are 
small entities that may be affected by rules adopted pursuant to the 
proposals in this FNPRM.
---------------------------------------------------------------------------

    \122\ 13 CFR 121.201, NAICS code 517110.
    \123\ See Trends in Telephone Service, at Table 5.3.
    \124\ Id.
    \125\ Id.
    \126\ Id.
    \127\ Id.
---------------------------------------------------------------------------

    12. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a small business size standard specifically 
applicable to interexchange services. The applicable size standard 
under SBA rules is for the Wired Telecommunications Carriers. Under 
that size standard, such a business is small if it has 1,500 or fewer 
employees.\128\ According to Commission data, 359 companies reported 
that their primary telecommunications service activity was the 
provision of interexchange services.\129\ Of this total, an estimated 
317 have 1,500 or fewer employees and 42 have more than 1,500 
employees.\130\ Consequently, the Commission estimates that the 
majority of interexchange service providers are small entities that may 
be affected by rules adopted pursuant to the FNPRM.
---------------------------------------------------------------------------

    \128\ 13 CFR 121.201, NAICS code 517110.
    \129\ See Trends in Telephone Service, at Table 5.3.
    \130\ Id.
---------------------------------------------------------------------------

    13. 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.\131\ Census data for 2007 show that 1,523 firms provided 
resale services during that year. Of that number, 1,522 operated with 
fewer than 1000 employees and one operated with more than 1,000.\132\ 
Thus under this category and the associated small business size 
standard, the majority of these prepaid calling card providers can be 
considered small entities. According to Commission data, 193 carriers 
have reported that they are engaged in the provision of prepaid calling 
cards.\133\ All 193 carriers have 1,500 or fewer employees and none 
have more than 1,500 employees.\134\ Consequently, the Commission 
estimates that the majority of prepaid calling card providers are small 
entities that may be affected by rules adopted pursuant to the FNPRM.
---------------------------------------------------------------------------

    \131\ 13 CFR 121.201, NAICS code 517911.
    \132\ Id.
    \133\ See Trends in Telephone Service, at Table 5.3.
    \134\ Id.
---------------------------------------------------------------------------

    14. 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.\135\ Census data for 2007 show that 1,523 firms provided 
resale services during that year. Of that number, 1,522 operated with 
fewer than 1000 employees and one operated with more than 1,000.\136\ 
Under this category and the associated small business size standard, 
the majority of these local resellers can be considered small entities. 
According to Commission data, 213 carriers have reported that they are 
engaged in the provision of local resale services.\137\ Of this total, 
an estimated 211 have 1,500 or fewer employees and two have more than 
1,500 employees.\138\ Consequently, the Commission estimates that the 
majority of local resellers are small entities that may be affected by 
rules adopted pursuant to the proposals in this FNPRM.
---------------------------------------------------------------------------

    \135\ 13 CFR 121.201, NAICS code 517911.
    \136\ Id.
    \137\ See Trends in Telephone Service, at Table 5.3.
    \138\ Id.
---------------------------------------------------------------------------

    15. 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.\139\ Census data for 2007 show that 1,523 firms provided 
resale services during that year. Of that number, 1,522 operated with 
fewer than 1,000 employees and one operated with more than 1,000.\140\ 
Thus, under this category and the associated small business size 
standard, the majority of these resellers can be considered small 
entities. According to Commission data, 881 carriers have reported that 
they are engaged in the provision of toll resale services.\141\ Of this 
total, an estimated 857 have 1,500 or fewer employees and 24 have more 
than 1,500 employees.\142\ Consequently, the Commission estimates that 
the majority of toll resellers are small entities that may be affected 
by our proposals in the FNPRM.
---------------------------------------------------------------------------

    \139\ 13 CFR 121.201, NAICS code 517911.
    \140\ Id.
    \141\ Trends in Telephone Service, at Table 5.3.
    \142\ Id.
---------------------------------------------------------------------------

    16. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a size standard for small businesses specifically applicable 
to Other Toll Carriers. This category includes toll carriers that do 
not fall within the categories of interexchange carriers, operator 
service providers, prepaid calling card providers, satellite service 
carriers, or toll resellers. The closest applicable size standard under 
SBA rules is for Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer 
employees.\143\ Census data for 2007 shows that there were 31,996 
establishments that operated that year. Of this total, 1,818 operated 
with more than 100 employees, and 30,178 operated with fewer than 100 
employees.\144\ Thus, under this category and the associated small 
business size standard, the majority of Other Toll Carriers can be 
considered small. According to Commission data, 284 companies reported 
that their primary telecommunications service activity was the 
provision of other toll carriage.\145\ Of these, an estimated 279 have 
1,500 or fewer employees and five have more than 1,500 employees.\146\ 
Consequently, the Commission estimates that most Other Toll Carriers 
are small entities that may be affected by the rules and policies 
adopted pursuant to the FNPRM.
---------------------------------------------------------------------------

    \143\ 13 CFR 121.201, NAICS code 517110.
    \144\ Id.
    \145\ Trends in Telephone Service, at Table 5.3.
    \146\ Id.
---------------------------------------------------------------------------

    17. Wireless Telecommunications Carriers (except Satellite). Since 
2007, the SBA has recognized wireless firms within this new, broad, 
economic census category.\147\ Prior to that time, such firms were 
within the now-superseded categories of Paging and Cellular and Other 
Wireless Telecommunications.\148\ Under the

[[Page 38002]]

present and prior categories, the SBA has deemed a wireless business to 
be small if it has 1,500 or fewer employees.\149\ For this category, 
census data for 2007 show that there were 11,163 establishments that 
operated for the entire year.\150\ Of this total, 10,791 establishments 
had employment of 999 or fewer employees and 372 had employment of 1000 
employees or more.\151\ Thus, under this category and the associated 
small business size standard, the Commission estimates that the 
majority of wireless telecommunications carriers (except satellite) are 
small entities that may be affected by our proposed action.
---------------------------------------------------------------------------

    \147\ 13 CFR 121.201, NAICS code 517210.
    \148\ U.S. Census Bureau, 2002 NAICS Definitions, ``517211 
Paging,'' available at http://www.census.gov/cgibin/sssd/naics/naicsrch?code=517211&search=2002%20NAICS%20Search; U.S. Census 
Bureau, 2002 NAICS Definitions, ``517212 Cellular and Other Wireless 
Telecommunications,'' available at http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517212&search=2002%20NAICS%20Search.
    \149\ 13 CFR 121.201, NAICS code 517210. The now-superseded, 
pre-2007 CFR citations were 13 CFR 121.201, NAICS codes 517211 and 
517212 (referring to the 2002 NAICS).
    \150\ U.S. Census Bureau, Subject Series: Information, Table 5, 
``Establishment and Firm Size: Employment Size of Firms for the 
United States: 2007 NAICS Code 517210'' (issued November 2010).
    \151\ Id. Available 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 
``100 employees or more.''
---------------------------------------------------------------------------

    18. Similarly, according to Commission data, 413 carriers reported 
that they were engaged in the provision of wireless telephony, 
including cellular service, Personal Communications Service (PCS), and 
Specialized Mobile Radio (SMR) Telephony services.\152\ Of this total, 
an estimated 261 have 1,500 or fewer employees and 152 have more than 
1,500 employees.\153\ Consequently, the Commission estimates that 
approximately half or more of these firms can be considered small. 
Thus, using available data, we estimate that the majority of wireless 
firms can be considered small.
---------------------------------------------------------------------------

    \152\ Trends in Telephone Service, at Table 5.3.
    \153\ Id.
---------------------------------------------------------------------------

    19. Cable Television and other Program Distribution. 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.'' \154\ The SBA has developed a small 
business size standard for this category, which is: all such firms 
having 1,500 or fewer employees.\155\ Census data for 2007 shows that 
there were 31,996 establishments that operated that year. Of this 
total, 1,818 had more than 100 employees, and 30,178 operated with 
fewer than 100 employees. Thus under this size standard, the majority 
of firms offering cable and other program distribution services can be 
considered small and may be affected by rules adopted pursuant to the 
FNPRM.
---------------------------------------------------------------------------

    \154\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' (partial definition), available at 
http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517110&search=2007%20NAICS%20Search.
    \155\ 13 CFR 121.201, NAICS code 517110.
---------------------------------------------------------------------------

    20. Cable Companies and Systems. The Commission has developed its 
own small business size standards, for the purpose of cable rate 
regulation. Under the Commission's rules, a ``small cable company'' is 
one serving 400,000 or fewer subscribers, nationwide.\156\ Industry 
data indicate that, of 1,076 cable operators nationwide, all but eleven 
are small under this size standard.\157\ In addition, under the 
Commission's rules, a ``small system'' is a cable system serving 15,000 
or fewer subscribers.\158\ 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.\159\ Thus, under 
this second size standard, most cable systems are small and may be 
affected by rules adopted pursuant to the FNPRM.
---------------------------------------------------------------------------

    \156\ See 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. See Implementation of Sections 
of the 1992 Cable Television Consumer Protection and Competition 
Act: Rate Regulation, MM Docket Nos. 92-266, 93-215, Sixth Report 
and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393, 
7408, paragraph 28 (1995).
    \157\ 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.
    \158\ See 47 CFR 76.901(c).
    \159\ WARREN COMMUNICATIONS NEWS, TELEVISION & CABLE FACTBOOK 
2006, ``U.S. Cable Systems by Subscriber Size,'' page F-2 (data 
current as of October 2007). The data do not include 851 systems for 
which classifying data were not available.
---------------------------------------------------------------------------

    21. All Other Telecommunications. The Census Bureau defines this 
industry as including ``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. 
Establishments providing Internet services or Voice over Internet 
Protocol (VoIP) services via client-supplied telecommunications 
connections are also included in this industry.'' \160\ The SBA has 
developed a small business size standard for this category; that size 
standard is $30.0 million or less in average annual receipts.\161\ 
According to Census Bureau data for 2007, there were 2,623 firms in 
this category that operated for the entire year.\162\ Of this total, 
2478 establishments had annual receipts of under $10 million and 145 
establishments had annual receipts of $10 million or more.\163\ 
Consequently, the Commission estimates that the majority of these firms 
are small entities that may be affected by our action in this FNPRM.
---------------------------------------------------------------------------

    \160\ U.S. Census Bureau, ``2007 NAICS Definitions: 517919 All 
Other Telecommunications,'' available at http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517919&search=2007%20NAICS%20Search.
    \161\ 13 CFR 121.201, NAICS code 517919.
    \162\ U.S. Census Bureau, 2007 Economic Census, Subject Series: 
Information, Table 4, ``Establishment and Firm Size: Receipts Size 
of Firms for the United States: 2007 NAICS Code 517919'' (issued 
November 2010).
    \163\ Id.
---------------------------------------------------------------------------

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

    22. This FNPRM seeks comment on changes to the Commission's current 
regulatory fee methodology and schedule which may result in additional 
information collection, reporting, and recordkeeping requirements. 
Specifically, the FNPRM seeks comment on combining fee categories and 
possibly using revenues or some other means to calculate regulatory 
fees. If a revenue-based option is adopted, this may require entities 
that do not currently file a Form 499-A to provide the Commission with 
revenue information. The FNPRM seeks comment on using subscribers, 
telephone numbers, or another method of calculating regulatory fees, 
which may involve additional recordkeeping, if such proposals are 
adopted. The FNPRM also seeks comment on adding categories to our 
regulatory fee schedule by changing the treatment of non-U.S.-Licensed 
Space Stations; Direct Broadcast Satellite; and toll free number 
subscribers in our regulatory fee process. If adopted, those entities 
that currently do not pay regulatory fees,

[[Page 38003]]

such as non-U.S.-Licensed Space Stations and toll free number 
subscribers, would be required to pay regulatory fees to the Commission 
and DBS providers would pay regulatory fees in a different category. 
The FNPRM also seeks comment on increasing our de minimis threshold and 
eliminating certain fee categories, which, if adopted, would result in 
more carriers not paying regulatory fees to the Commission.

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

    23. 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.\164\
---------------------------------------------------------------------------

    \164\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

    24. With respect to reporting requirements, the Commission is aware 
that some of the proposals under consideration will impact small 
entities by imposing costs and administrative burdens if these entities 
will be required to calculate regulatory fees under a different 
methodology. For example, if the Commission were to adopt a revenue-
based approach for calculating regulatory fees, certain entities that 
currently do not report revenues to the Commission--or that only report 
some revenues and not others--may have to report such information.
    25. This FNPRM seeks to reform the regulatory fee methodology. We 
specifically seek comment on ways to lessen the regulatory fee burden 
on small companies by, for example, adopting a higher de minimis 
threshold or exempting certain categories from regulatory fees. We also 
seek comment on ways to improve the regulatory fee process for 
companies that have difficulty with the Commission's rules, by, for 
example, improving our Web site.
    26. It is possible that some of our proposals, if adopted, would 
result in increasing or imposing a regulatory fee burden on small 
entities. For example, our reallocations, if adopted, may result in 
higher regulatory fees for certain categories of regulatory fee payors. 
The Commission anticipates that if that should occur the increase would 
be minimal and the inequities would be mitigated from such increases, 
by, for example, limiting the annual increase. In keeping with the 
requirements of the Regulatory Flexibility Act, the Commission has 
considered certain alternative means of mitigating the effects of fee 
increases to a particular industry segment. The FNPRM seeks comment on 
capping any regulatory fee increases at 7.5 or 10 percent. This FNPRM 
also proposes adopting a higher de minimis standard to exempt the 
smaller entities from paying any regulatory fees and to eliminate 
certain regulatory fee categories entirely. The Commission seeks 
comment on the abovementioned, and any other, means and methods that 
would minimize any significant economic impact of our proposed rules on 
small entities.

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

    27. None.

XI. Ordering Clauses

    67. 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 Second Further Notice of 
Proposed Rulemaking, Notice of Proposed Rulemaking, and Order are 
hereby adopted.
    68. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Second Further Notice of Proposed Rulemaking and Notice of 
Proposed Rulemaking, including the Initial Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the U.S. Small Business 
Administration.

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure.

Federal Communications Commission.
Sheryl D. Todd,
Deputy Secretary.

Rule Changes

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

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, 227, 303(r), 309, 1403, 1404, and 1451.

0
2. Section 1.1112 is amended by revising paragraphs (a) and (b), 
redesignating paragraphs (e) through (g) as paragraphs (f) and (g) and 
by adding new paragraph (e) to read as follows:


Sec.  1.1112  Form of payment.

    (a) Annual and multiple year regulatory fees must be paid 
electronically as described below in Sec.  1.1112(e). Fee payments, 
other than annual and multiple year regulatory fee payments, should be 
in the form of a check, cashier's check, or money order denominated in 
U.S. dollars and drawn on a United States financial institution and 
made payable to the Federal Communications Commission or by a Visa, 
MasterCard, American Express, or Discover credit card. No other credit 
card is acceptable. Fees for applications and other filings paid by 
credit card will not be accepted unless the credit card section of FCC 
Form 159 is completed in full. The Commission discourages applicants 
from submitting cash and will not be responsible for cash sent through 
the mail. Personal or corporate checks dated more than six months prior 
to their submission to the Commission's lockbox bank and postdated 
checks will not be accepted and will be returned as deficient. Third 
party checks (i.e., checks with a third party as maker or endorser) 
will not be accepted.
    (1) Although payments (other than annual and multiple year 
regulatory fee payments) may be submitted in the form of a check, 
cashier's check, or money order, payors of these fees are encouraged to 
submit these payments electronically under the procedures described in 
section 1.1112 (e).
    (2) Specific procedures for electronic payments are announced in 
Bureau/Office fee filing guides.
    (3) It is the responsibility of the payer to insure that any 
electronic payment is made in the manner required by the Commission. 
Failure to comply with the Commission's procedures will result in the 
return of the application or other filing.
    (4) To insure proper credit, applicants making wire transfer 
payments must follow the instructions set out in the appropriate Bureau 
Office fee filing guide.
    (b) Applicants are required to submit one payment instrument 
(check, cashier's check, or money order) and FCC Form 159 with each 
application or filing; multiple payment instruments for a single 
application or filing are not permitted. A separate Fee Form (FCC

[[Page 38004]]

Form 159) will not be required once the information requirements of 
that form (the Fee Code, fee amount, and total fee remitted) are 
incorporated into the underlying application form.
* * * * *
    (e) Annual and multiple year regulatory fee payments shall be 
submitted by online ACH payment, online Visa, MasterCard, American 
Express, or Discover credit card payment, or wire transfer payment 
denominated in U.S. dollars and drawn on a United States financial 
institution and made payable to the Federal Communications Commission. 
No other credit card is acceptable. Any other form of payment for 
regulatory fees (e.g., paper checks) will be rejected and sent back to 
the payor.
    (f) All fees collected will be paid into the general fund of the 
United States Treasury in accordance with Public Law 99-272.
    (g) The Commission will furnish a stamped receipt of an application 
only upon request that complies with the following instructions. In 
order to obtain a stamped receipt for an application (or other filing), 
the application package must include a copy of the first page of the 
application, clearly marked ``copy'', submitted expressly for the 
purpose of serving as a receipt of the filing. The copy should be the 
top document in the package. The copy will be date-stamped immediately 
and provided to the bearer of the submission, if hand delivered. For 
submissions by mail, the receipt copy will be provided through return 
mail if the filer has attached to the receipt copy a stamped self-
addressed envelope of sufficient size to contain the date stamped copy 
of the application. No remittance receipt copies will be furnished.
0
7. Section 1.1158 is amended by revising the introductory text and 
paragraph (a) to read as follows:


Sec.  1.1158  Form of payment for regulatory fees.

    Any annual and multiple year regulatory fee payment must be 
submitted by online Automatic Clearing House (ACH) payment, online 
Visa, MasterCard, American Express, or Discover credit card payment, or 
wire transfer payment denominated in U.S. dollars and drawn on a United 
States financial institution and made payable to the Federal 
Communications Commission. No other credit card is acceptable. Any 
other form of payment for annual and multiple year regulatory fees 
(e.g., paper checks, cash) will be rejected and sent back to the payor. 
The Commission will not be responsible for cash, under any 
circumstances, sent through the mail.
    (a) Payors making wire transfer payments must submit an 
accompanying FCC Form 159-E via facsimile.
* * * * *
0
9. Section 1.1161 is amended by revising paragraph (a) to read as 
follows:


Sec.  1.1161  Conditional license grants and delegated authorizations.

    (a) Grant of any application or an instrument of authorization or 
other filing for which an annual or multiple year regulatory fee is 
required to accompany the application or filing will be conditioned 
upon final payment of the current or delinquent regulatory fees. 
Current annual and multiple year regulatory fees must be paid 
electronically as described in section 1.1112(e). For all other fees, 
(e.g., application fees, delinquent regulatory fees) final payment 
shall mean receipt by the U.S. Treasury of funds cleared by the 
financial institution on which the check, cashier's check, or money 
order is drawn. Electronic payments are considered timely when a wire 
transfer was received by the Commission's bank no later than 6:00 p.m. 
on the due date; confirmation to pay.gov that a credit card payment was 
successful no later than 11:59 p.m. (EST) on the due date; or 
confirmation an ACH was credited no later than 11:59 p.m. (EST) on the 
due date.
* * * * *
0
10. Section 1.1164 is amended by revising the introductory text to read 
as follows:


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

    Electronic payments are considered timely when a wire transfer was 
received by the Commission's bank no later than 6:00 p.m. on the due 
date; confirmation to pay.gov that a credit card payment was successful 
no later than 11:59 p.m. (EST) on the due date; or confirmation an ACH 
was credited no later than 11:59 p.m. (EST) on the due date. In 
instances where a non-annual regulatory payment (i.e., delinquent 
payment) is made by check, cashier's check, or money order, a timely 
fee payment or installment payment is one received at the Commission's 
lockbox bank by the due date specified by the Commission or by the 
Managing Director. Where a non-annual regulatory fee payment is made by 
check, cashier's check, or money order, a timely fee payment or 
installment payment is one received at the Commission's lockbox bank by 
the due date specified by the Commission or the Managing Director. Any 
late payment or insufficient payment of a regulatory fee, not excused 
by bank error, shall subject the regulatee to a 25 percent penalty of 
the amount of the fee of installment payment which was not paid in a 
timely manner. A payment will also be considered late filed if the 
payment instrument (check, money order, cashier's check, or credit 
card) is uncollectible.
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[FR Doc. 2014-15167 Filed 7-2-14; 8:45 am]
BILLING CODE 6712-01-P