[Federal Register Volume 61, Number 73 (Monday, April 15, 1996)]
[Proposed Rules]
[Pages 16432-16447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9192]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Chapter I
[MD Docket No. 96-84; FCC 96-153]
Assessment and Collection of Regulatory Fees For Fiscal Year 1996
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
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SUMMARY: The Commission is proposing to revise its Schedule of
Regulatory Fees in order to recover the amount of regulatory fees that
Congress has required it to collect for fiscal year 1996. Section 9 of
the Communications Act of 1934, as amended, provides for the annual
assessment and collection of regulatory fees. For fiscal year 1996
sections 9(b) (2) and (3) provide for annual ``Mandatory Adjustments''
and ``Permitted Amendments'' to the Schedule of Regulatory Fees. The
proposed revisions will further the National Performance Review goals
of reinventing Government by requiring beneficiaries of Commission
services to pay for such services.
DATES: Comments must be filed on or before April 29, 1996 and reply
comments must be filed on or before May 9, 1996.
ADDRESSES: Federal Communications Commission, 1919 M Street, NW.,
Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT: Peter W. Herrick, Office of Managing
Director at (202) 418-0443, or Terry D. Johnson, Office of Managing
Director at (202) 418-0445.
SUPPLEMENTARY INFORMATION:
Adopted: April 5, 1996.
Released: April 9, 1996.
By the Commission.
Table of Contents
Topic/Paragraph Numbers
I. Introduction 1-4
II. Background 5-7
III. Discussion 8-60
A. Overall Methodology and Format--8-10
B. Adjustment of Payment Units--11
C. Recalculation of Fees--12
D. Cost Accounting System--13-17
E. Other Proposed Changes--18-51
1. Commercial Mobile Radio Service--19
2. Commercial AM/FM Radio--20-21
3. Commercial AM/FM/TV Construction Permits--22-26
4. Commercial VHF/UHF Television Stations--27
5. Auxiliary Broadcast Stations--28-33
6. Interstate Telephone Service Providers--34
7. Earth Stations--35
8. Wireless Cable--36-38
9. Direct Broadcast Satellite (DBS) Service--39-42
10. Intelsat & Inmarsat Signatory--43-47
11. Low Earth Orbit (LEO) Satellite Systems--48-49
12. Minimum Fee Payment Liability--50-51
F. Procedures for Payment of Regulatory Fees--52-59
1. Annual Payments of Standard Fees--53
2. Installment Payments for Large Fees--54-55
3. Advance Payments of Small Fees--56
4. Minimum Fee Payment Liability--57
5. Standard Fee Calculations and Payment Dates--58-59
G. Schedule of Regulatory Fees--60
IV. Procedural Matters--61-69
A. Comment Period and Procedures--61
B. Ex Parte Rules--62
C. Initial Regulatory Flexibility Analysis--63
D. Paperwork Reduction Act Compliance--64-67
E. Authority and Further Information--68-69
Appendix A--Initial Regulatory Flexibility Analysis
Appendix B--Sources of Payment Unit Estimates for FY 1996
Appendix C--Calculation of Pro-Rata Adjustments
Appendix D--FY 1996 Schedule of Regulatory Fees
Appendix E--Comparison Between FY 1995 and FY 1996 Regulatory Fees
Appendix F--FY 1996 Guidelines for Regulatory Fee Categories
I. Introduction
1. By this Notice of Proposed Rulemaking, the Commission commences
a proceeding to revise its Schedule of Regulatory Fees in order to
recover the amount of regulatory fees that Congress, pursuant to
Section 9(a) of the Communications Act, has required it to collect for
Fiscal Year (FY) 1996. See 47 U.S.C. Sec. 159 (a).
2. For FY 1996, Congress has required that we collect $116,400,000
through regulatory fees in order to recover the costs of our
enforcement, policy and rulemaking, international and user information
activities for FY 1996. P.L. 104-99 and 47 U.S.C. Sec. 159(a)(2). This
is the same amount that Congress designated for recovery through
regulatory fees for FY 1995. See Assessment and Collection of
Regulatory Fees for Fiscal Year 1995, FCC 95-227, released June 19,
1995, 60 FR 34004 (June 29, 1995). The current
[[Page 16433]]
Schedule of Regulatory Fees is set forth in sections 1.1152 through
1.1156 of the Commission's rules. 47 CFR Secs. 1.1152-1.1156.
3. Because the amount that Congress requires that we recover for FY
1996 is the same amount as we were required to recover for FY 1995, we
are not proposing to revise the Schedule of Fees to collect more or
less in total fees. However, we are proposing adjustments to the
Schedule and associated payment procedures to reflect changes in the
estimated number of payment units associated with services subject to a
fee and to incorporate certain public interest considerations. See 47
U.S.C. 159 (b).
4. Finally, we propose to amend the Schedule in order to assess
regulatory fees upon licensees and/or regulatees of services not now
subject to payment of a fee, to simplify and streamline the Schedule
and to clarify and/or revise certain payment procedures. 47 U.S.C.
Sec. 159(b)(3).
II. Background
5. Section 9(a) of the Communications Act of 1934, as amended,
authorizes the Commission to assess and collect annual regulatory fees
to recover the costs, as determined annually by Congress, that it
incurs in carrying out enforcement, policy and rulemaking,
international, and user information activities. 47 U.S.C. 159(a). In
our FY 1994 Fee Order, 59 FR 30984 (June 16, 1994), we adopted the
Schedule of Regulatory Fees that Congress established and we prescribed
rules to govern payment of the fees, as required by Congress. 47 U.S.C.
Sec. 159(b), (f)(1). Subsequently, in our FY 1995 Fee Order, we
modified the Schedule to increase by approximately 93 percent the
revenue generated by these fees in accordance with the amount Congress
required us to collect in FY 1995 over FY 1994. 60 FR 34004 (June 29,
1995). Also, in the FY 1995 Fee Order, we amended certain rules
governing our regulatory fee program based upon our experience
administering the program in FY 1994. See 47 CFR Secs. 1.1151 et seq.
6. As noted above, for FY 1994 we adopted the Schedule of
Regulatory Fees established in Section 9(g) of the Act. For fiscal
years after FY 1994, however, Sections 9(b) (2) and (3), respectively,
provide for ``Mandatory Adjustments'' and ``Permitted Amendments'' to
the Schedule of Regulatory Fees. 47 U.S.C. Sec. 159(b)(2), (b)(3).
Section 9(b)(2), entitled ``Mandatory Adjustments'', requires that we
revise the Schedule of Regulatory Fees whenever Congress changes the
amount that we are to recover through regulatory fees. 47 U.S.C.
Sec. 159(b)(2).
7. Section 9(b)(3), entitled ``Permitted Amendments'', requires
that we determine annually whether adjustments of the fees are
warranted based upon criteria established in 47 U.S.C. 159(b)(3). Also,
pursuant to Section 9(b)(3), we are to adjust the fees to take into
account factors that are reasonably related to the payor of the fee and
factors that are in the public interest. In making these amendments, we
are to ``add, delete, or reclassify services in the Schedule to reflect
additions, deletions or changes in the nature of its services.'' 47
U.S.C. Sec. 159(b)(3). Section 9(i) requires that we develop accounting
systems necessary to making permitted amendments. 47 U.S.C.
Sec. 159(i). Finally, we are required to notify Congress of any
permitted amendments 90 days before those amendments go into effect. 47
U.S.C. Sec. 159(b)(4)(B).
III. Discussion
A. Overall Methodology and Format
8. As noted above, Congress has required the recovery of
$116,400,000 for FY 1996 through the collection of regulatory fees,
representing the costs applicable to our enforcement, policy and
rulemaking, international, and user information activities. 47
Sec. U.S.C. 159(a).
9. Our approach to developing a FY 1996 fee schedule required that
we first adjust our estimates of payment units so that we could
determine how much revenue we would collect even if we did not change
any individual fee amounts. We then compared the total estimated
revenue that we would collect at the existing fee rates to the $116.4
million that we are required to collect in FY 1996 and pro-rated the
difference among all the existing fee categories. We then intended to
compare these projected revenues with cost data gathered from our new
cost accounting system and to make whatever adjustments were deemed
necessary to ensure that costs generally equated to revenues in each
fee category. As discussed elsewhere in this NPRM, this particular step
was not performed due to implementation problems associated with our
new cost accounting system. A substitute mechanism was, however, put in
place to provide assurances that estimated costs and revenues were
reasonable.
10. We next considered various proposals made by Commission Bureaus
and Offices for additions, deletions or other adjustments to the fees
and to our collection procedures. The results of these actions were
factored into our final schedule. That schedule is contained in
Appendix D. Finally, we incorporated, as Appendix F, proposed Guidance
which provides detailed descriptions of each fee category, information
on who is responsible for paying each fee and other critical
information designed to assist potential fee payers in determining the
extent of fee liability, if any, in FY 1996, assuming that our proposed
fees set forth in Appendix D are ultimately adopted.1 The steps
which we followed in the development of our FY 1996 regulatory fee
proposals are discussed in more detail in the following paragraphs.
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\1\ We also will incorporate a similar Appendix in the Report
and Order concluding this rulemaking. That Appendix will contain
updated information concerning any changes made to the proposed fees
adopted by the Report and Order.
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B. Adjustment of Payment Units
11. In order to calculate individual service fees for FY 1996, we
first adjusted the estimated payment units for each service because, in
many services, payment units have changed substantially since last
year. We obtained our estimates through a variety of means. For
example, we used Commission licensee data bases, actual prior year
payment records and industry and trade group projections, when
available. We tried to verify these estimates from multiple sources to
ensure that our estimates were reasonable. Appendix B provides a
summary of how these revised payment units were determined for each fee
category.
C. Recalculation of Fees
12. We next multiplied the revised payment units for FY 1996 by the
FY 1995 fee amounts in each fee category to determine how much revenue
the Commission would collect in FY 1996 if it made no changes to the
existing Schedule of Regulatory Fees. Next, we adjusted these revenue
requirements for each fee category on a proportional basis, consistent
with Section 9(b)(2) of the Act, to insure that we would collect only
the $116.4 million prescribed by Congress. Then we recalculated the
individual fee amounts required to collect the adjusted amount in each
service and rounded each fee amount as provided by Section 9(b)(2).
Appendix C provides detailed calculations showing how these revised fee
amounts were determined.
D. Cost Accounting System
13. On October 1, 1995, the Commission established a cost
accounting system which was designed, in part, to assist in the
development of
[[Page 16434]]
our regulatory fees, specifically to help determine whether and to what
extent additional revisions to the Schedule of Regulatory Fees might be
required. See 47 U.S.C. Secs. 159(i). Our objective in establishing the
cost accounting system was to provide us with data that we could use,
in combination with other information, to ensure that fees closely
reflected our actual costs of regulation.
14. We had intended to compare extrapolated data from the cost
accounting system with the adjusted revenue requirements described
above in order to help assure that the adjusted fees we developed for
each service were reasonably related to the regulatory costs of each
service. It was our intention to propose further adjustments to the
fees in instances where the variance between the estimated costs of
each service and its estimated revenues appeared appropriate.
15. While there would be inherent deficiencies to any cost
accounting system relative to meeting the requirements of the Act, we
nonetheless believed that we would have enough useful information from
our new cost accounting system to warrant consideration of such data in
formulating our proposed FY 1996 fees. Unfortunately, several factors
have prevented us from relying on data derived from the cost accounting
system for the development of FY 1996 regulatory fees.
16. First, immediately following implementation of our cost
accounting system, it was discovered that the system contained a
significant amount of erroneous data due to technical complications
encountered during the start-up of the system. Although this data was
later corrected, the delay in obtaining useful output from the system
has prevented a thorough analysis of the data. Additionally, the
lengthy government shutdown and subsequent weather emergency in
Washington, D.C. prevented the accumulation of critical cost data for
several weeks. Consequently, we lack the confidence that we originally
anticipated we would have relative to FY 1996 cost data and, therefore,
will not utilize such data in the development of our proposed FY 1996
Regulatory Fee Schedule.
17. However, because our overall costs incident to the activities
described in Section 9(a)(1) of the Act remain unchanged from FY 1995,
we are satisfied that our revenue estimates for FY 1996 generally
reflect the relative costs applicable to our regulatory activities. As
a result, many individual fees remain unchanged from last fiscal year.
E. Other Proposed Changes
18. We examined the results of our calculations made in Paragraph
12 to determine if further adjustments of the fees and/or changes to
payment procedures were warranted based upon the public interest and
other criteria established in 47 U.S.C. 159(b)(3). As a result of this
review, we have proposed the following:
1. Commercial Mobile Radio Service (CMRS)
19. The Commercial Mobile Radio Service (CMRS) includes various
services authorized to provide interconnected mobile radio services for
profit to the public, or to such classes of eligible users as to be
effectively available to a substantial portion of the public. CMRS
includes certain licensees which formerly were licensed as part of the
Private Radio Services (e.g., Specialized Mobile Radio Services and
Private Paging), others formerly licensed as part of the Common Carrier
Radio Services (e.g., Public Mobile Services and Cellular Radio
Service) and one new service, the Personal Communications Service (PCS)
2. While specific rules pertaining to each covered service remain
in separate Parts 22, 80 and 90 of the Commission's rules; general
rules governing CMRS are contained in Part 20 of the rules. See 47 CFR
Parts 20, 22, 80 and 90. We are proposing to replace the Public Mobile/
Cellular Radio regulatory fee category with a CMRS Mobile Services
category and replace the Public Mobile One-Way Paging fee category with
a CMRS One-Way Paging Services category for regulatory fee collection
purposes. CMRS Mobile Services will include: qualifying Business Radio
Services, 220-222 MHz Land Mobile Systems, Specialized Mobile Radio
Services (Part 90); Public Coast Stations (Part 80); Public Mobile
Radio, Cellular, 800 MHz Air-Ground Radiotelephone, and Offshore Radio
Services (Part 22). We propose that licensees in the CMRS Mobile
Services pay annual regulatory fees on a per mobile or cellular unit
(mobile or cellular call sign or telephone number), or on a per unit
(two-way pager) basis. We propose that CMRS One-Way Paging Services
licensees pay annual regulatory fees on a per unit (pager) basis. See
Appendix F, Paragraphs 14-16.
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\2\ Although PCS is a CMRS service, we are not proposing that
PCS licensees pay a regulatory fee for FY 1996 because the service
is, at most, in the very early start-up phase with few subscribers
on the date (December 31, 1995) established for determining
liability for such a fee and, therefore, it is premature to assess a
fee.
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2. Commercial AM/FM Radio
20. In our FY 1995 NPRM, we considered an alternative methodology
for assessing regulatory fees for Commercial AM and FM radio licensees
based on market rankings. This methodology, based on markets, was
ultimately rejected as incomplete and insufficiently accurate for fee
determination. Other possible alternatives to using the existing class
designations to differentiate various types of stations and take into
consideration ability to pay were also eliminated due to a lack of
vital data necessary for establishing and verifying these fees. We were
particularly interested in a proposal which would associate population
density and service area contours with license data. Unfortunately,
this proposal appears to not be cost effective because it would require
a significant expenditure of funds to develop the required database and
additional funds to provide the results to our licensees to use for fee
payment purposes.
21. In our FY 1995 Order, we invited commenters to propose viable
alternatives to using designated class of station as the fee qualifier
in our FY 1996 NPRM. See FY 1995 Report and Order released June 19,
1995, Paragraph 54. We reiterate our invitation in this NPRM. In the
absence of a viable alternative, however, we are proposing to continue
to base the fees for AM and FM broadcast stations on station class for
FY 1996. See Appendix F, Paragraph 18.
3. Commercial AM/FM/TV Construction Permits
22. These categories of fees apply to holders of permits to
construct new commercial AM, FM, UHF and VHF Television stations
covered under Part 73 of the Commission's rules. Construction permit
(CP) fees are based on the type of commercial broadcasting service
(i.e., AM, FM or TV) for which the station is being constructed.
23. Because of the small number of construction permits relative to
overall stations and the modest amount of revenue collected from these
licensees, we considered elimination of construction permits as a
separate fee category with the costs attributed to regulation of
construction permits to be subsumed in the overall costs for regulation
of broadcast stations. This approach would simplify the fee schedule
and provide ``one stop'' fee payment by reducing or eliminating the
need for a broadcaster, in certain instances, to submit multiple
payments (e.g., when an existing broadcaster is
[[Page 16435]]
also the holder of a construction permit). More generally, it would
eliminate the fee on stations that are not yet operational and
producing income.
24. To recoup revenues lost by the elimination of the construction
permit fee, we would aggregate the revenue requirements associated with
construction permits and distribute this revenue requirement on a pro
rata basis to the primary station fee categories for AM/FM/TV
commercial broadcast stations. New, slightly higher, primary station
fees would result from this methodology.
25. In reviewing this issue, we determined that subsuming the fee
for construction permits under the primary station fees is inherently
inequitable since it would result in currently operating broadcast
stations subsidizing stations under construction, some of which would
eventually provide direct competition to the existing stations.
Additionally, the impact on the FM Radio Service is particularly
apparent. In this service, the impact of a large number of pending
construction permits combined with the relatively high construction
permit fee (compared to construction permit fees in the AM and TV
services) produces a situation where significant costs would have to be
absorbed by a limited number of operational commercial FM stations,
resulting in a much greater impact on these broadcasters.
26. Based on these factors, we propose to retain separate fee
categories for construction permits for AM/FM/TV commercial broadcast
stations in FY 1996. We do, however, welcome comments on this issue.
See Appendix F, Paragraphs 19, 20, 23-25.
4. Commercial VHF/UHF Television Stations
27. In our FY 1995 Order, we specified that VHF and UHF television
fees be determined in accordance with the station market rankings
published by Warren Publishing in the 1994 Edition of the Television
and Cable Factbook (No. 62). This ranking was based on Areas of
Dominant Influence (ADIs) as determined by the Arbitron Rating Co.
(``Arbitron''). Arbitron has now ceased publication of ADI market
areas. However, the A.C. Nielsen Co. (``Nielsen'') has published
Designated Market Areas (DMAs) which approximate the same coverage
areas as the Arbitron ADIs. The Nielsen DMAs also have the advantage of
including stations in Alaska and Hawaii which Arbitron did not.
Finally, the 1995 Edition of the Television and Cable Factbook (No. 63)
has replaced the Arbitron ADI listing with the Nielsen DMA listing. In
view of the above considerations, we propose for FY 1996 to require
television licensees to use Nielsen DMA rankings to determine the
appropriate regulatory fee. See Appendix F, Paragraph 21.
5. Auxiliary Broadcast Stations
28. This fee category includes licensees of Remote Pickup Stations,
Aural Broadcast Auxiliary Stations, Television Broadcast Auxiliary
Stations, and Low Power Auxiliary Stations, authorized under Part 74 of
the Commission's Rules. These stations are generally associated with a
particular television or radio broadcast station or cable television
system.
29. In an effort to simplify the FY 1996 Fee Schedule, we examined
the feasibility and equity of combining auxiliary broadcast station
fees with the primary fees paid by broadcast station licensees and
cable television operators. Combining these fees appeared to be an
efficient approach due to the modest auxiliary fee relative to the fees
assessed on broadcast stations and cable television systems.
30. Calculating a new fee encompassing both the auxiliary fee and
station fee is relatively simple. We would add the auxiliary service
revenue requirement to the AM/FM/TV and cable television revenue
requirements on a pro-rata basis and then recompute each AM/FM/TV and
cable television fee. This would result in slightly higher fees for
each of these entities, but would also reduce the number of individual
fee payments required from many of these payors.
31. Although a single consolidated fee has certain advantages, we
identified some significant problems with using this approach. One
problem is that the number of auxiliary stations per parent station
varies greatly, with some broadcast stations or cable systems having
none of these licenses while others have more than a dozen. Also, it
appears that no more than ten percent of current regulatees own and
operate auxiliary facilities. Moreover, since applications for
auxiliary stations currently do not identify the parent station, nor
does the Commission maintain records providing this information, it is
impossible to determine the actual number of auxiliaries by license
category (AM/FM/TV, cable).
32. Finally, we determined that this proposal would likely result
in serious inequities since the larger commercial broadcast stations
and cable systems in the most profitable markets are most likely to
utilize multiple auxiliary stations. While a consolidated fee would
have little impact on them, it would result in smaller, less profitable
stations subsidizing part of the larger stations' operating costs.
33. For these reasons, we propose to retain Auxiliary Broadcast
Station fees as a separate category in FY 1996. We would, however,
welcome any suggestions on alternative methods for assessing these
fees. See Appendix F, Paragraph 27.
6. Interstate Telephone Service Providers
34. For FY 1995, all interstate telephone service providers were
assessed regulatory fees based on a percentage of their adjusted gross
revenue as computed from revenue data reported to the
Telecommunications Relay Service (TRS) Fund. Our FY 1995 Schedule of
Regulatory Fees listed each type of interstate telephone service
provider separately (e.g., Inter-exchange Carriers, Local Exchange
Carriers, Competitive Access Providers, Operator Services Providers)
causing some inadvertent confusion for payees. Because we are proposing
once again that all interstate telephone service providers compute
their fee based on the same adjusted gross revenue method, we are
proposing to consolidate Inter-Exchange Carriers, Local Exchange
Carriers, Competitive Access Providers, Operator Service Providers/Pay
Telephone Operators, Resellers, and Other Interstate Providers into a
single fee category labeled ``Interstate Telephone Service Providers.''
Details concerning who must pay interstate telephone service provider
fees can be found in Appendix F, Paragraph 32.
7. Earth Stations
35. For FY 1995, all earth stations were assessed the same fee
based on the number of authorizations or registrations. Our FY 1995
Schedule of Fees listed each type of earth station separately, causing
some inadvertent confusion for payees. Because we are proposing that
all earth stations (except receive only earth stations for which we
propose to not assess a regulatory fee) continue to pay the same fee
based on the number of authorizations or registrations, we are
proposing to simplify the structure of the Schedule by combining VSATs/
Equivalent C-Band/Mobile, Transmit/Receive, and Transmit Only Earth
Stations into a single fee category labeled ``Earth Stations.'' Further
details concerning earth station fees may be found in Appendix F,
Paragraphs 33-34.
[[Page 16436]]
8. Wireless Cable
36. Multi-Channel Multipoint Distribution Service Stations (MMDS;
a.k.a. ``Wireless Cable.''), along with Multipoint Distribution Service
Stations (MDS), are authorized under Part 21 of the Commission's Rules
to use microwave frequencies for video and data distribution. These
services were included in the Domestic Public Fixed Radio Service
category in the FY 1995 Regulatory Fee Schedule.
37. When operated as a Multichannel Video Programming Distribution
service (MVPD), MMDS licensees compete directly with cable television
and with other MVPDs. Current industry estimates indicate that Wireless
Cable has 800,000 subscribers or 1.19% of the MVPD market.
38. We propose to assess regulatory fees on MMDS licensees based on
an individual call sign. We seek comment on this proposal. See Appendix
F, Paragraph 28.
9. Direct Broadcast Satellite (DBS) Service
39. The Direct Broadcast Satellite (DBS) Service offers a wide
range of programming options to its subscribers distributed via
geosynchronous satellite. DBS service is expanding rapidly with total
viewership currently estimated at 1,500,000 subscribers.
40. For FY 1995, we decided not to assess a fee for the DBS service
because our resources devoted to regulation of DBS, other than those
involving application processing, were negligible and because DBS
operators then served few subscribers. See FY 1995 Report and Order,
Paragraph 15. For FY 1996, however, we are proposing to assess a fee
upon licensees in the DBS service since the service is operational,
serving numerous subscribers and, therefore, subject to the regulatory
activities (additional resources devoted to policy and rulemaking,
enforcement and public information) whose costs are recovered by
assessment of a regulatory fee.
41. We propose to assess DBS licensees the fee applicable to all
geosynchronous satellite licensees and, therefore, to include DBS for
regulatory fee purposes in the Space Station fee category. In
developing our proposed DBS fee, we considered assessing DBS licensees
a per subscriber fee rather than including them within the
geosynchronous satellite fee category. We currently assess per
subscriber fees in several fee categories, including a per subscriber
fee for cable television systems. However, we propose that DBS
satellites be included in the geosynchronous satellite category.
Despite the fact that DBS is a subscriber-based service, costs
attributable to regulating DBS operators are more similar to those
attributable to regulation of other geosynchronous space stations.
Regulatory responsibilities related to space stations focus on policy
and rulemaking activities, and are unrelated to the number of end users
of satellite services. Moreover, DBS rules do not impose additional
regulatory requirements on video service providers that are
specifically related to the individual subscriber. Thus, the number of
subscribers to a DBS service does not significantly affect the
regulatory costs arising from DBS services. By contrast, cable service
providers are subject to rate regulation, customer service standards,
and certain programming obligations. In addition, a subscriber-based
formula would penalize DBS licensees who win more subscribers with less
space station capacity (and hence lower regulatory costs). Moreover,
because DBS licensees are not restricted to the provision of video
programming, but rather may provide various non-video services, we
concluded that a facility-based fee would ensure that each DBS licensee
contributed equitably to the cost of DBS regulation without the need to
impose possibly burdensome and overly intrusive reporting requirements
necessary to gather information identifying the services offered by
individual DBS operators.
42. In light of the factors discussed above, we propose to assess
fees on these licensees on a per station basis. See Appendix F,
Paragraph 35.
10. Intelsat & Inmarsat Signatory
43. For FY 1995, we determined that Comsat was not subject to
payment of a geosynchronous satellite regulatory fee for its Intelsat
and Inmarsat satellites because the legislative history of Section 9
states that regulatory fees should not be assessed upon space stations
operated by international bodies. See FY 1995 Report and Order,
Paragraph 110. Instead, we propose to explore other ways to recover our
regulatory costs incurred due to Comsat's participation in the Intelsat
and Inmarsat programs. Thus, we are proposing to assess a new fee to
recover our costs of regulation of the U.S. Signatory to Intelsat and
Inmarsat. We believe that the fee is appropriate in view of the unique
role of the U.S. Signatory in Intelsat's and Inmarsat's structure and
our unique regulatory role with respect to these entities.
44. We propose to establish the separate Signatory fee because our
geosynchronous space station fee now recovers a significant amount of
costs directly attributable to our resource burden related to
conducting our oversight of the U.S. Signatory to these international
operations.3 Currently, we are conducting several proceedings
regarding the U.S. Signatories' authority to provide services via
Intelsat and Inmarsat, the U.S. Signatories' authority to participate
in the procurement or leasing of various Intelsat and Inmarsat space
stations, and their authority to participate in certain Intelsat and
Inmarsat-associated businesses. There also are proceedings pending
before us related to whether the U.S. Signatory has conformed to
applicable structural and financial separation rules. In addition, we
actively participate on an ongoing basis with the Executive Branch in
the oversight of the U.S. Signatories' representations of U.S. policy
at the Intelsat and Inmarsat governing boards through the U.S.
Government instructional process and participate directly in the
Assembly of Parties meetings of the two intergovernmental
organizations. Finally, we maintain public files of Intelsat and
Inmarsat governing board and other organizational documents.
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\3\ The U.S. Signatory to Intelsat is the Communications
Satellite Corporation (COMSAT), the entity designated, pursuant to
the Communications Satellite Act, as the sole operating entity to
participate in the International Telecommunications Satellite
Organization (Intelsat) in order to construct and operate the space
segment of the global commercial telecommunications satellite system
established under the Interim Agreement and Special Agreement signed
by Governments on August 20, 1964. See 47 U.S.C. Sec. 301. Also, the
U.S. Signatory to Inmarsat is Comsat, solely designated, pursuant to
the Communications Satellite Act, to participate in the
International Mobile Satellite Organization (Inmarsat).
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45. Because our regulation of the U.S. Signatories is substantially
different from our regulatory activities related to satellite systems
licensed by us, we are persuaded that the costs of our activities
related to the signatories should be recovered directly from the U.S.
Signatories rather than from space station licensees generally.
Moreover, we do not believe that it is necessary or appropriate to base
the Signatory fee on the number of space stations owned by the two
intergovernmental satellite systems. Rather, we will formulate the
Signatory fee pursuant to our cost of oversight of the Signatory's
activities.
46. Our review of our signatory activities discloses that
approximately 14.7% of the costs attributable to space station
regulatory oversight ($2,960,100), as determined in
[[Page 16437]]
Appendix C, is directly related to Intelsat and Inmarsat Signatory
activities (5.25 FTEs 4 out of a total of 35.7 direct FTEs). This
means that approximately $435,135 must be collected from the
signatories to offset the regulatory costs attributed to them
($2,960,100 x 14.7%). Dividing this revenue requirement by two (there
are signatories to two separate organizations), yields a signatory fee
of $217,575 (rounded). Therefore, we are proposing to add a new
regulatory fee of $217,575 for each designation as a signatory. See
Appendix F, Paragraph 37. Comment is requested on our proposal to
charge a signatory fee and on the methodology for calculating such a
fee.
---------------------------------------------------------------------------
\4\ Full Time Equivalent (FTE) employment is the total number of
regular straight-time hours (i.e., not including overtime or holiday
hours) worked or to be worked by current and future employees
divided by the number of compensable hours applicable to each fiscal
year.
---------------------------------------------------------------------------
47. Since the proposed Signatory fee will recover our costs
attributable to our signatory oversight, we are also proposing, in
conjunction with that proposal, to reduce the corresponding space
station fee. The new space station fee is computed by reducing the
revenue requirement for space stations calculated in Appendix C
($2,960,100) by the $435,150 to be collected from signatories and
dividing the reduced space station revenue requirement ($2,524,950) by
the number of payment units (39 operational space stations). The result
of these calculations is a new fee of $64,750 (rounded) for each
operational space station.5
---------------------------------------------------------------------------
\5\ This fee is further adjusted in Paragraph 51.
---------------------------------------------------------------------------
11. Low Earth Orbit (LEO) Satellite Systems
48. The FY 1994 statutory regulatory fee schedule (see 47 U.S.C.
159(g)) proposed a $90,000 regulatory fee for licensees in the Low
Earth Orbit (LEO) Satellite service. However, the Commission found that
there were no operational LEO systems on the effective date of the FY
1994 Schedule and suspended the fee for that year and again for FY
1995. See FY 1995 Report and Order, Paragraph 15. For FY 1996, however,
there are licensed and operational LEO systems. Therefore, we propose
to include a Low Earth Orbit Satellite System fee in the Schedule of
Regulatory Fees.
49. In developing a LEO System regulatory fee for FY 1996, we
propose to apportion the total revenue requirement for all space
stations between LEO systems and geosynchronous space station
licensees. In so doing, we also propose to preserve the same relative
relationship between the fees established by the Congress in Section
9(g) of the Act for geosynchronous space stations and LEO systems;
i.e., an approximate 38.5% differential between the fee for LEO systems
and the fee for geosynchronous space stations. 47 U.S.C. Sec. 159(g).
Reliance on this methodology will reduce the revenue which must be
collected from space stations other than LEOs and the corresponding
fees for space stations which had been calculated in Appendix C and
subsequently adjusted in Paragraph 49. As a result of our calculations,
we are proposing a new LEO system regulatory fee of $87,725 and a new
geosynchronous space station fee of $63,500 for FY 1996.6 See
Appendix F, Paragraphs 35-36.
---------------------------------------------------------------------------
\6\ The FY 1996 adjusted revenue requirement for all space
stations has been determined to be $2,524,950. See Paragraph 49. For
FY 1996, there are two LEO systems and 37 geosynchronous space
stations subject to fee payment. The formula for computing the new
LEO and geosynchronous space station fees is as follows:
(a) We have assigned ``L'' to represent the proposed LEO system
fee and ``G'' to represent the proposed geosynchronous space station
fee. I.e.,
L = LEO System Fee
G = Geosynchronous Space Station Fee
(b) The relationship between the LEO fee and the geosynchronous
fee may be expressed as:
L = 1.385G (i.e., the LEO fee needs to be 38.5% higher than the
corresponding geosynchronous space station fee).
(c) The total revenue to be collected from LEOs and
geosynchronous space stations may be expressed as:
2L + 37G = $2,524,950 (i.e., the two existing LEO systems and 37
geosynchronous stations together must account for $2,524,950 in
revenues).
(d) Substituting the value of ``L'' in (b) above into the
formula in (c) above yields the following:
2(1.385G) + 37G = $2,524,950
2.77G + 37G = $2,524,950
39.77G = $2,524,950
G = $63,489
(e) Therefore, ``G'' (Geosynchronous space station fee) is
$63,500 (after rounding).
(f) Substituting the computed value of ``G'' in (d) above into
the formula in (c) above yields the following:
2L + 37(63,500) = 2,524,950
2L + 2,349,500 = 2,524,950
2L = 175,450
L = 87,725
(g) Therefore, ``L'' (LEO fee) is $87,725.
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12. Minimum Fee Payment Liability
50. In FY 1995 the Commission received several small fee payments
that cost more to deposit and process than the actual amount collected.
Such payments occur in fee categories where there is a per unit or per
subscriber charge, such as the fee for cable television (per
subscriber) or CMRS one-way paging (per unit).
51. Our collection and verification costs for small payments is
considerably more than any revenue generated from these collections.
Thus, we are proposing for FY 1996 a minimum fee liability for payees
of Commission regulatory fees. Our minimum fee liability policy would
exempt fee payment for any licensee whose total fee liability was less
than $10. This exemption would apply only when the total fee due from
an entity, including all categories of fees for which a payment is due
by an entity, is less than $10. To ensure that this exemption is
utilized as envisioned, we are also proposing to continue to require
that licensees complete and submit FCC Form 159, ``FCC Remittance
Advice'' so that we may verify that a fee payment is not required of
these entities.
F. Procedures for Payment of Regulatory Fees
52. Generally, we propose to retain the procedures that we have
established for the payment of regulatory fees. Section 9(f) requires
that we permit ``payment by installments in the case of fees in large
amounts, and in the case of small amounts, shall require the payment of
the fee in advance for a number of years not to exceed the term of the
license held by the payor.'' See 47 U.S.C. Sec. 159(f)(1). Consistent
with the section, we are again establishing three categories of fee
payments, based upon the category of service for which the fee payment
is due and the amount of the fee to be paid. The fee categories are (1)
``Standard'' fees, (2) ``large'' fees, and (3) ``small'' fees.
1. Annual Payments of Standard Fees
53. Standard fees are those regulatory fees that are payable in
full on an annual basis. Payers of standard fees are not required to
make advance payments for their full license term and are not eligible
for installment payments. All standard fees are payable in full on the
date we establish for payment of fees in their regulatory fee category.
The payment dates for each regulatory fee category will be announced
either in the Report and Order in this proceeding or by public notice
in the Federal Register following the termination of the proceeding.
2. Installment Payments for Large Fees
54. In our FY 1995 NPRM, we proposed that regulatees in any
category of service with a payment liability of $12,000 or more would
be eligible to make installment payments. Further, we proposed that
eligibility for payment by installment would be based upon the amount
of either a single regulatory fee payment or combination of fee
payments by the same licensee or regulatee. However, in our FY 1995
[[Page 16438]]
Order, we declined to adopt our installment payment proposals because,
as a practical matter, there would be insufficient time following the
effective date of our FY 1995 Schedule of Fees to permit a meaningful
implementation of an installment payment program.
55. For FY 1996, while we are mindful that time constraints may
preclude an opportunity for installment payments, we will once more
propose that regulatees in any category of service with a payment
liability of $12,000 or more be eligible to make installment payments
and that eligibility for payment by installment be based upon the
amount of either a single regulatory fee payment or combination of fee
payments by the same licensee or regulatee. Therefore, we propose that
regulatees eligible to pay by installment payments may submit their
required fee in two equal payments (on dates to be announced in the
Report and Order terminating this proceeding or in the Federal Register
following the proceeding's termination), or, in the alternative, may
submit a single full payment on the date that their final installment
payment is due.
3. Advance Payments of Small Fees
56. As we have in the past, we are proposing to treat regulatory
fee payments by certain licensees as small fees subject to advance
payments. Advance payments will be required from licensees of those
services that we decided would be subject to advance payments in our FY
1994 Order.7 Payers of advance fees will submit the entire fee due
for the full term of their licenses when filing their initial, renewal
or reinstatement application. Regulatees subject to a payment of small
fees shall pay the amount due for the current fiscal year multiplied by
the number of years in the term of their requested license. In the
event that the required fee is adjusted following their payment of the
fee, the payor would not be subject to the payment of a new fee until
filing an application for renewal or reinstatement of the license.
Thus, payment for the full license term would be made based upon the
regulatory fee applicable at the time the application is filed. The
Commission will announce by public notice in the Federal Register the
effective date for the payment of small fees pursuant to the FY 1996
fee schedule.
---------------------------------------------------------------------------
\7\ Applicants for new, renewal and reinstatement licenses in
the following services will be required to pay their regulatory fees
in advance: Land Mobile Services, Microwave services, Interactive
Video Data Services (IVDS), Marine (Ship) Service, Marine (Coast)
Service, Private Land Mobile (Other) Services, Aviation (Aircraft)
Service, Aviation (Ground) Service, General Mobile Radio Service
(GMRS). In addition, applicants for Amateur Radio vanity call signs
will be required to submit an advance payment.
---------------------------------------------------------------------------
4. Minimum Fee Payment Liability
57. As discussed above, regulatees whose total fee liability is
less than ten dollars are exempted from fee payment in 1996. See
Paragraphs 54-55. However, such regulatees must complete and submit FCC
Form 159, ``FCC Remittance Advice'' so that we may verify that a fee
payment is not due. The Commission will announce by public notice in
the Federal Register the effective date for the submission of this fee
form.
5. Standard Fee Calculations and Payment Dates
58. As noted, the time for payment of standard fees and any
installment payments will be published in the Federal Register. For
licensees, permittees and holders of other authorizations in the Common
Carrier, Mass Media, and Cable Services, whose fees are not based on a
subscriber, line or circuit count, fees should be submitted for any
authorization held as of October 1, 1995. October 1 is the date to be
used for establishing liability for payment of standard fees since it
is the first day of the federal government's fiscal year.
59. In the case of regulatees whose fees are based upon a
subscriber, line or circuit count, the number of a regulatees'
subscribers, licenses or circuits on December 31, 1995, will be used to
calculate the fee payment.8 We have selected the last date of the
calendar year because many of these entities file reports with us as of
that date. Others calculate their subscriber numbers as of that date
for internal purposes. Therefore, calculation of the regulatory fee as
of that date will facilitate both an entity's computation of its fee
payment and our verification that the correct fee payment has been
submitted.
---------------------------------------------------------------------------
\8\ Cable systems calculate their regulatory fees using
subscriber data submitted to the Commission in their Annual Report
of Cable Television Systems (FCC Form 325). Accordingly, the number
of cable subscribers will not neccessarily be based on account as of
December 31, 1995, but rather on ``a typical day in the last full
week'' of December 1995.
---------------------------------------------------------------------------
G. Schedule of Regulatory Fees
60. The Commission's proposed Schedule of Regulatory Fees for FY
1996 is contained in Appendix D of this NPRM.
IV. Procedural Matters
A. Comment Period and Procedures
61. Pursuant to the procedures set forth in sections 1.415 and
1.419 of the Commission's rules, interested parties may file comments
on or before April 29, 1996, and reply comments on or before May 9,
1996. All relevant comments will be considered by the Commission before
final action is taken in this proceeding. To file formally in this
proceeding, participants must file an original and four copies of all
comments, reply comments and supporting materials. If participants want
each Commissioner to receive a personal copy of their comments, an
original and nine copies must be filed. Comments and reply comments
should be sent to the Office of the Secretary, Federal Communications
Commission, Washington, D.C. 20554. Interested parties, who do not wish
to formally participate in this proceeding, may file informal comments
to the same address. Comments and reply comments will be available for
public inspection during regular business hours in the FCC Reference
Center (Room 239) of the Federal Communications Commission, 1919 M
Street, N.W., Washington, D.C. 20554.
[[Page 16439]]
B. Ex Parte Rules
62. This is a non-restricted notice and comment rulemaking
proceeding. Ex parte presentations are permitted, except during the
Sunshine Agenda period, provided they are disclosed pursuant to the
Commission's rules. See 47 CFR Secs. 1.1202, 1.1203 and 1026(a).
C. Initial Regulatory Flexibility Analysis
63. As required by section 603 of the Regulatory Flexibility Act
(Pub. L. No. 96-354, 94 Stat. 1165, 5 U.S.C. Sec. 601 et seq. (1981),
the Commission has prepared an Initial Regulatory Flexibility Analysis
(IRFA) of the expected impact on small entities of the proposals
suggested in this document. The IRFA is set forth in Appendix A.
Written public comments are requested with respect to the IRFA. These
comments must be filed in accordance with the same filing deadlines for
comments on the rest of the NPRM, but they must have a separate and
distinct heading, designating the comments as responses to the IRFA.
The Secretary shall send a copy of this NPRM, including the IRFA, to
the Chief Counsel for Advocacy of the Small Business Administration in
accordance with section 603(a) of the Regulatory Flexibility Act.
D. Authority and Further Information
64. Authority for this proceeding is contained in sections 4 (i)
and (j), 9, and 303(r) of the Communications Act of 1934 as amended, 47
U.S.C. Secs. 154 (i) and (j) and 159 and 303(r).
65. Further information about this proceeding may be obtained by
contacting the Fees Hotline at (202) 418-0192.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
Appendix A--Initial Regulatory Flexibility Analysis
Reason for Action
This rulemaking proceeding is initiated to obtain comment
regarding the Commission's proposed amendment of its Schedule of
Regulatory Fees in order to collect regulatory fees in the amount of
$116,400,000, the amount that Congress has required the Commission
to recover through regulatory fees in Fiscal Year 1996.
Objectives
The Commission seeks to collect the necessary amount through its
proposed revised regulatory fees, as contained in the attached
Schedule of Regulatory Fees, in the most efficient manner possible
and without undue burden to the public.
Legal Basis
The proposed action is authorized under sections (4) (i) and
(j), 9 and 303(r) of the Communications Act of 1934, as amended, 47
U.S.C. Secs. 154 (i) and (j), 159, and 303(r).
Reporting, Recordkeeping and other Compliance Requirements
The Commission has developed FCC Form 159 and FCC Form 159C for
submission with regulatory fee payments. Also, the Commission has
adopted implementation rules governing the payment of regulatory
fees. See 47 CFR Sec. 1.1151 et seq.
Federal Rules that Overlap, Duplicate or Conflict with Proposed Rule
None.
Description, Potential Impact, and Number of Small Entities Involved
The proposed amendment of the Schedule of Regulatory Fees will
affect permittees, licensees and other regulatees in the cable,
common carrier, mass media, private radio and international
services. After evaluating the comments in this proceeding, the
Commission will further examine the impact of any fee revisions or
additions or rule changes on small entities and set forth our
findings in the Final Regulatory Flexibility Analysis.
Any Significant Alternatives Minimizing the Impact on Small Entities
Consistent With the Stated Objectives
The Notice solicits comments on alternative methods of assessing
the regulatory fees necessary to recover the $116,400,000 in costs
that Congress has required us to recover through regulatory fees in
FY 1996.
Appendix B--Sources of Payment Unit Estimates for FY 1996
In order to calculate individual service fees for FY 1996, we
adjusted FY 1995 payment units for each service to more accurately
reflect expected FY 1996 payment liabilities. We obtained our
updated estimates through a variety of means. For example, we used
Commission licensee data bases, actual prior year payment records
and industry and trade association projections when available. We
tried to obtain verification for these estimates from multiple
sources and, in all cases, we compared FY 1996 estimates with actual
FY 1995 payment units to ensure that our revised estimates were
reasonable. Where it made sense, we adjusted and/or rounded our
final estimates to take into consideration the fact that certain
variables that impact on the number of payment units yet cannot be
estimated exactly. These include an unknown number of waivers and/or
exemptions that may occur in FY 1996 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. Therefore, when we note, for example, that our estimated FY
1996 payment units are based on FY 1995 actual payment units, it
does not necessarily mean that our FY 1996 projection is exactly the
same number as FY 1995. It means that we have either rounded the FY
1995 number or adjusted it slightly to account for these variables.
------------------------------------------------------------------------
Fee catgory Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, Based on Wireless Telecommunications
IVDS, Marine (Ship & Coast), Bureau (WTB) projections of new
Aviation (Aircraft & applications and renewals taking into
Ground), GMRS, Amateur consideration existing Commission
Vanity Call Signs, Domestic licensee data bases. Aviation (Aircraft)
Public Fixed. and Marine (Ship) estimates have been
adjusted to take into consideration
proposals to license portions of these
services on a voluntary basis.
CMRS Mobile Services (incl. Based on actual FY 1995 payment units
Cellular/Public Mobile Radio adjusted to take into consideration
Services and Two Way Paging industry estimates of growth between FY
Services). 1995 and FY 1996 and Wireless
Telecommunications Bureau projections of
new applications and average number of
mobile units associated with each
application.
CMRS One Way Paging Services. Based on industry estimates of the number
of pager units in operation.
AM/FM Radio Stations......... Based on actual FY 1995 payment units.
UHF/VHF Television Stations.. Based on actual FY 1995 payment units.
AM/FM/TV Construction Permits Based on actual FY 1995 payment units.
[[Page 16440]]
LPTV, Translators and Based on actual FY 1995 payment units.
Boosters.
Auxiliaries.................. Based on actual FY 1995 payment units.
MDS/MMDS..................... Based on actual FY 1995 payment units.
Cable Antenna Relay System Based on actual FY 1995 payment units.
(CARS).
Cable Television System Based on Cable Services Bureau and
Subscribers. industry estimates of subscribership.
IXCs/LECs, CAPs, Other Based on actual FY 1995 interstate
Service Providers. revenues associated with contributions
to the Telecommunications Relay System
(TRS) Fund adjusted to take into
consideration FY 1996 revenue growth in
this industry as estimated by the Common
Carrier Bureau.
Earth Stations............... Based on actual FY 1995 payment units.
Space Stations & LEOs........ Based on International Bureau licensee
data bases.
International Bearer Circuits Based on actual FY 1995 payment units.
International HF Broadcast Based on actual FY 1995 payment units.
Stations, International
Public Fixed Radio Service.
------------------------------------------------------------------------
BILLING CODE 6712-01-P
[[Page 16441]]
[GRAPHIC] [TIFF OMITTED] TP15AP96.011
BILLING CODE 6712-01-C
[[Page 16442]]
Appendix D--FY 1996 Schedule of Regulatory Fees
------------------------------------------------------------------------
Annual
Fee category regulatory fee
------------------------------------------------------------------------
Land Mobile (per license) (220-222 Mhz, above 470 Mhz,
Base Station and SMRS) (47 CFR Part 90)................ 6
Microwave (per license) (47 CFR Part 101)............... 6
Interactive Video Data Service (per license) (47 CFR
Part 95)............................................... 6
Marine (Ship) (per station) (47 CFR Part 80)............ 3
Marine (Coast) (per license) (47 CFR Part 80)........... 3
General Mobile Radio Service (per license) (47 CFR Part
95).................................................... 3
Land Mobile (per license) (all stations not covered
above)................................................. 3
Aviation (Aircraft) (per station) (47 CFR Part 87)...... 3
Aviation (Ground) (per license) (47 CFR Part 87)........ 3
Amateur Vanity Call Signs (per call sign) (47 CFR Part
97).................................................... 3
CMRS Mobile Services (per unit) (47 CFR Parts 20, 22, 80
and 90)................................................ .15
CMRS One-Way Paging (per unit) (47 CFR Parts 20, 22 and
90).................................................... .02
Domestic Public Fixed Radio (per call sign) (47 CFR Part
21).................................................... 140
AM Radio (47 CFR Part 73):
Class A............................................. 1,125
Class B............................................. 630
Class C............................................. 255
Class D............................................. 315
Construction Permits................................ 125
FM Radio (47 CFR Part 73):
Classes C, C1, C2, B................................ 1,125
Classes A, B1, C3................................... 755
Construction Permits................................ 625
TV (47 CFR Part 73) VHF Commercial:
Markets 1-10........................................ 22,700
Markets 11-25....................................... 20,175
Markets 26-50....................................... 15,125
Markets 51-100...................................... 10,100
Remaining Markets................................... 6,300
Construction Permits................................ 5,025
TV (47 CFR Part 73) UHF Commercial:
Markets 1-10........................................ 18,150
Markets 11-25....................................... 16,150
Markets 26-50....................................... 12,100
Markets 51-100...................................... 8,075
Remaining Markets................................... 5,025
Construction Permits................................ 4,025
Satellite Television Stations (All Markets)............. 625
Construction Permits--Satellite Television Stations..... 230
Low Power TV, TV/FM Translators & Boosters (47 CFR Part
74).................................................... 170
Broadcast Auxiliary (47 CFR Part 74).................... 30
Multipoint Distribution Service (per call sign) (47 CFR
Part 21)............................................... 140
Cable Antenna Relay Service (47 CFR Part 78)............ 295
Cable Television Systems (per subscriber) (47 CFR Part
76).................................................... .50
Interstate Telephone Service Providers (per revenue
dollar)................................................ .00089
Earth Stations (47 CFR Part 25)......................... 335
Space Stations (per operational station in
geosynchronous orbit) (47 CFR Part 25) also includes
Direct Broadcast Satellite Service (per operational
station) (47 CFR Part 100)............................. 63,500
Low Earth Orbit Satellite (per operational system) (47
CFR Part 25)........................................... 87,725
INMARSAT/INTELSAT Signatory (per signatory)............. 217,575
International Circuits (per active 64KB circuit)........ 4
International Public Fixed (per call sign) (47 CFR Part
23).................................................... 200
International (HF) Broadcast (47 CFR Part 73)........... 255
------------------------------------------------------------------------
Appendix E--Comparison Between FY 1995 and FY 1996 Regulatory Fees
------------------------------------------------------------------------
Proposed
Annual annual
Fee category regulatory regulatory fee
fee FY 1995 FY 1996
------------------------------------------------------------------------
Land Mobile (per license) (220-222 Mhz,
above 470 Mhz, Base Station and SMRS) (47
CFR Part 90)............................. 6 6
Microwave (per license) (47 CFR Part 101). 6 6
Interactive Video Data Service (per
license) (47 CFR Part 95)................ 6 6
Marine (Ship) (per station) (47 CFR Part
80)...................................... 3 3
Marine (Coast) (per license) (47 CFR Part
80)...................................... 3 3
General Mobile Radio Service (per license)
(47 CFR Part 95)......................... 3 3
Land Mobile (per license) (all stations
not covered above)....................... 3 3
Aviation (Aircraft) (per station) (47 CFR
Part 87)................................. 3 3
Aviation (Ground) (per license) (47 CFR
Part 87)................................. 3 3
Amateur Vanity Call Signs (per call sign)
(47 CFR Part 97)......................... 3 3
[[Page 16443]]
CMRS Mobile Services (per unit) (47 CFR
Parts 20, 22, 80 and 90)................. .15 .15
CMRS One-Way Paging (per unit) (47 CFR
Parts 20, 22, and 90).................... .02 .02
Domestic Public Fixed Radio (per call
sign) (47 CFR Part 21)................... 140 140
AM Radio (47 CFR Part 73):
Class A............................... 1,120 1,125
Class B............................... 620 630
Class C............................... 250 255
Class D............................... 310 315
Construction Permits.................. 125 125
FM Radio (47 CFR Part 73):
Classes C, C1, C2, B.................. 1,120 1,125
Classes A, B1, C3..................... 745 755
Construction Permits.................. 620 625
TV (47 CFR Part 73) VHF Commercial:
Markets 1-10.......................... 22,420 22,700
Markets 11-25......................... 19,925 20,175
Markets 26-50......................... 14,950 15,125
Markets 51-100........................ 9,975 10,100
Remaining Markets..................... 6,225 6,300
Construction Permits.................. 4,975 5,025
TV (47 CFR Part 73) UHF Commercial:
Markets 1-10.......................... 17,925 18,150
Markets 11-25......................... 15,950 16,150
Markets 26-50......................... 11,950 12,100
Markets 51-100........................ 7,975 8,075
Remaining Markets..................... 4,975 5,025
Construction Permits.................. 3,975 4,025
Satellite Television Stations (All
Markets)................................. 620 625
Construction Permits--Satellite Television
Stations................................. 225 230
Low Power TV, TV/FM Translators & Boosters
(47 CFR Part 74)......................... 170 170
Broadcast Auxiliary (47 CFR Part 74)...... 30 30
Multipoint Distribution Service (per call
sign) (47 CFR Part 21)................... 140 140
Cable Antenna Relay Service (47 CFR Part
78)...................................... 290 295
Cable Television Systems (per subscriber)
(47 CFR Part 76)......................... .49 .50
Interstate Telephone Service Providers
(per revenue dollar)..................... .00088 .00089
Earth Stations (47 CFR Part 25)........... 330 335
Space Stations (per operational station in
geosynchronous orbit) (47 CFR Part 25)... 75,000 63,500
Also includes Direct Broadcast Satellite
Service (per operational station) (47 CFR
Part 100)................................ n/a 63,500
Earth Orbit Satellite (per operational
system) (47 CFR Part 25)................. n/a 87,725
INMARSAT/INTELSAT Signatory (per
signatory)............................... n/a 217,575
International Circuits (per active 64KB
circuit)................................. 4 4
International Public Fixed (per call sign)
(47 CFR Part 23)......................... 200 200
International (HF) Broadcast (47 CFR Part
73)...................................... 250 255
------------------------------------------------------------------------
Appendix F--FY 1996 Guidelines for Regulatory Fee Categories
1. The guidelines below provide an explanation of regulatory fee
categories established by the Schedule of Regulatory Fees in Section
9(g) of the Communications Act, 47 U.S.C. 159(g) as modified in the
instant Notice of Proposed Rulemaking. Where regulatory fee
categories need interpretation or clarification, we have relied on
the legislative history of Section 9, our own experience in
establishing and regulating the Schedule of Regulatory Fees for
Fiscal Years (FY) 1994 and 1995 and the services subject to the fee
schedule, and the comments of the parties in our proceeding to adopt
fees for FY 1995. The categories and amounts set out in the schedule
have been modified to reflect changes in the number of payment
units, additions and changes in the services subject to the fee
requirement and the benefits derived from the Commission's
regulatory activities, and to simplify the structure of the
schedule. The schedule may be similarly modified or adjusted in
future years to reflect changes in the Commission's budget and in
the services regulated by the Commission. See 47 U.S.C. 159(b) (2),
(3).
2. Exemptions. Most licensees and other entities regulated by
the Commission must pay regulatory fees in 1996. However,
governments and nonprofit (exempt under Section 501 of the Internal
Revenue Code) entities are exempt from paying regulatory fees and
should not submit payment, but may be asked to submit a current IRS
Determination Letter documenting its nonprofit status, a
certification of governmental authority, or certification from a
governmental entity attesting to its exempt status. The governmental
exemption applies even where the government-owned or community-owned
facility is in direct competition with commercial stations. Other
specific exemptions are discussed below in association with a
particular service category or group.
1. Private Wireless Radio Services
3. Two levels of statutory fees were established for the Private
Wireless Radio Services--exclusive use services and shared use
services. Thus, licensees who generally receive a higher quality
communication channel due to exclusive or lightly shared frequency
assignments, will pay a higher fee than those who share marginal
quality assignments. This dichotomy is consistent with the directive
of section 9 that the regulatory fees reflect the benefits provided
to the licensees. See 47 U.S.C. 159(b)(1)(A). In addition, because
of the generally small amount of the fees assessed against Private
Wireless Radio Service licensees, applicants for new licenses and
reinstatements and for renewal of existing licenses are required to
pay a regulatory fee covering the entire license term, with only a
percentage of all licensees paying a regulatory fee in any one year.
Applications for modification or assignment of existing
authorizations do not require the payment of regulatory fees. The
[[Page 16444]]
expiration date of those authorizations will reflect only the
unexpired term of the underlying license rather than a new license
term.
a. Exclusive Use Services
4. Land Mobile Services: Regulatees in this category include
those authorized under Part 90 of the Commission's Rules to provide
limited access Wireless Radio service that allows high quality voice
or digital communications between vehicles or to fixed stations to
further the business activities of the licensee. These services,
using the 220-222 MHz band and frequencies at 470 MHz and above, may
be offered on a private carrier basis in the Specialized Mobile
Radio Services (SMRS).1
---------------------------------------------------------------------------
\1\ This category only applies to licensees of shared-use
private 220-222 MHz and 470 MHz and above in the Specialized Mobile
Radio (SMR) service who have elected not to change to the Commercial
Mobile Radio Service (CMRS). Those who have elected to change to the
CMRS are referred to paragraph 14 of this Appendix.
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For FY 1996, Land Mobile licensees will pay a $6 annual
regulatory fee per license, payable for an entire five or ten year
license term at the time of application for a new, renewal or
reinstatement license.2 The total regulatory fee due is either
$30 for a license with a five year term or $60 for a license with a
10 year term.
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\2\ Although this fee category includes licenses with ten year
terms, the estimated volume of ten year license applications in FY
1996 is less than one tenth of one percent and, therefore, is
statistically insignificant.
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5. Microwave Services: These services include private microwave
systems and private carrier systems authorized under Part 101 of the
Commission's Rules to provide telecommunications services between
fixed points on a high quality channel of communications. Microwave
systems are often used to relay data and to control railroad,
pipeline and utility equipment. For FY 1996, Microwave licensees
will pay a $6 annual regulatory fee per license, payable for an
entire ten year license term at the time of application for a new,
renewal or reinstatement license. The total regulatory fee due is
$60 for the ten year license term.
6. Interactive Video Data Service (IVDS): The IVDS is a two-way
point-to-multi-point radio service allocated high quality channels
of communications and authorized under Part 95 of the Commission's
Rules. The IVDS provides information, products and services, and
also the capability to obtain responses from subscribers in a
specific service area. The IVDS is offered on a private carrier
basis. For FY 1996, IVDS licensees will pay a $6 annual regulatory
fee per license, payable for an entire five year license term at the
time of application for a new, renewal, or reinstatement license.
The total regulatory fee due is $30 for the five year term of the
license.
b. Shared Use Services
7. Marine (Ship) Service: This service is a shipboard radio
service authorized under Part 80 of the Commission's Rules to
provide telecommunications between watercraft or between watercraft
and shore-based stations. Radio installations are required by
domestic and international law for large passenger or cargo vessels.
Radio equipment may be voluntarily installed on smaller vessels,
such as recreational boats. The recently enacted Telecommunications
Act of 1996 gave the Commission the authority to license certain
ship stations by rule rather than by individual license. Private
boat operators sailing entirely within domestic U.S. waters and who
are not otherwise required by treaty or agreement to carry a radio,
may no longer be required to hold a marine license if the Commission
enacts rules to that effect, and they will not be required to pay a
regulatory fee. For FY 1996, parties required to be licensed and
those choosing to be licensed for Marine (Ship) Stations will pay a
$3 annual regulatory fee per station, payable for an entire ten year
license term at the time of application for a new, renewal or
reinstatement license. The total regulatory fee due is $30 for the
ten year license term.
8. Marine (Coast) Service: This service includes land-based
stations in the maritime services, authorized under Part 80 of the
Commission's Rules, to provide communications services to ships and
other watercraft in coastal and inland waterways. For FY 1996,
licensees of Marine (Coast) Stations will pay a $3 annual regulatory
fee per call sign, payable for the entire five year license term at
the time of application for a new, renewal or reinstatement license.
The total regulatory fee due is $15 per call sign for the five year
license term.
9. Private Land Mobile (Other) Services: These services include
Land Mobile Radio Services operating under Parts 90 and 95 of the
Commission's Rules. Services in this category provide one or two way
communications between vehicles, persons or to fixed stations on a
shared basis and include radiolocation services, industrial radio
services and land transportation radio services. For FY 1996,
licensees of services in this category will pay a $3 annual
regulatory fee per call sign, payable for an entire five year
license term at the time of application for a new, renewal or
reinstatement license. The total regulatory fee due is $15 for the
five year license term.
10. Aviation (Aircraft) Service: These services include stations
authorized to provide communications between aircraft and from
aircraft to ground stations and includes frequencies used to
communicate with air traffic control facilities pursuant to Part 87
of the Commission's Rules. The recently enacted Telecommunications
Act of 1996 gave the Commission the authority to license certain
aircraft radio stations by rule rather than by individual license.
Private aircraft operators flying entirely within domestic U.S.
airspace and who are not otherwise required by treaty or agreement
to carry a radio, may no longer be required to hold an aircraft
license if the Commission enacts rules to that effect, and they will
not be required to pay a regulatory fee. For FY 1996, parties
required to be licensed and those choosing to be licensed for
Aviation (Aircraft) Stations will pay a $3 annual regulatory fee per
station, payable for the entire ten year license term at the time of
application for a new, renewal or reinstatement license. The total
regulatory fee due is $30 per station for the ten year license term.
11. Aviation (Ground) Service: This service includes stations
authorized to provide ground-based communications to aircraft for
weather or landing information, or for logistical support pursuant
to Part 87 of the Commission's Rules. Certain ground-based stations
which only serve itinerant traffic; i.e., possess no actual units on
which to assess a fee, are exempt from payment of regulatory fees.
For FY 1996, licensees of Aviation (Ground) Stations will pay a $3
annual regulatory fee per license, payable for the entire five year
license term at the time of application for a new, renewal or
reinstatement license. The total regulatory fee is $15 per call sign
for the five year license term.
12. General Mobile Radio Service (GMRS): These services include
Land Mobile Radio licensees providing personal and limited business
communications between vehicles or to fixed stations for short-
range, two-way communications pursuant to Part 95 of the
Commission's Rules. For FY 1996, GMRS licensees will pay a $3 annual
regulatory fee per license, payable for an entire five year license
term at the time of application for a new, renewal or reinstatement
license. The total regulatory fee due is $15 per license for the
five year license term.
c. Amateur Radio Vanity Call Signs
13. Amateur Vanity Call Signs: This fee covers voluntary
requests for specific call signs in the Amateur Radio Service
authorized under part 97 of the Commission's Rules. For FY 1996,
applicants for Amateur Vanity Call-Signs will pay a $3 annual
regulatory fee per call sign, payable for an entire ten year license
term at the time of application for a vanity call sign. The total
regulatory fee due would be $30 per license for the ten year license
term.3
---------------------------------------------------------------------------
\3\ Section 9(h) exempts ``amateur radio operator licenses under
Part 97 of the Commission's rules (47 CFR Part 97)'' from the
requirement. However, Section 9(g)'s fee schedule explicitly
includes ``Amateur vanity call signs'' as a category subject to the
payment of a regulatory fee.
---------------------------------------------------------------------------
d. Commercial Wireless Radio Services
14. Commercial Mobile Radio Services (CMRS) Mobile Services: The
Commercial Mobile Radio Service (CMRS) is a new ``umbrella''
descriptive term attributed to various existing services authorized
to provide interconnected mobile radio services for profit to the
public, or to such classes of eligible users as to be effectively
available to a substantial portion of the public. CMRS Mobile
Services include certain licensees which formerly were licensed as
part of the Private Radio Services (e.g., Specialized Mobile Radio
Services) and others formerly licensed as part of the Common Carrier
Radio Services (e.g., Public Mobile Services and Cellular Radio
Service). While specific rules pertaining to each covered service
remain in separate Parts 22, 80 and 90; general rules for CMRS are
contained in Part 20. We have replaced the Public Mobile/Cellular
Radio regulatory fee category with a CMRS Mobile Services category
for regulatory fee collection purposes. CMRS Mobile Services will
[[Page 16445]]
include: qualifying Business Radio Services, 220-222 MHz Land Mobile
Systems, Specialized Mobile Radio Services (Part 90); 4 Public
Coast Stations (Part 80); Public Mobile Radio, Cellular, 800MHz Air-
Ground Radiotelephone, and Offshore Radio Services (Part 22). Each
licensee in this group will pay an annual regulatory fee for each
mobile or cellular unit (mobile or cellular call sign or telephone
number), including two-way paging units, assigned to its customers,
including resellers of its services. For FY 1996, the regulatory fee
is $.15 per unit.
---------------------------------------------------------------------------
\4\ This category does not include licensees of private shared-
use 220 MHz and 470 MHz and above in the Specialized Mobile Radio
(SMR) service who have elected to remain non-commercial. Those who
have elected not to change to the Commercial Mobile Radio Service
(CMRS) are referred to paragraph 4 of this Appendix.
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15. Personal Communications Service (PCS): For FY 1996, the
Personal Communications Service (PCS) covered by Part 24 of the
rules is exempt from payment of regulatory fees.
16. Commercial Mobile Radio Services (CMRS) One-Way Paging
Services: The Commercial Mobile Radio Service (CMRS) is a new
``umbrella'' descriptive term attributed to various existing
services authorized to provide interconnected mobile radio services
for profit to the public, or to such classes of eligible users as to
be effectively available to a substantial portion of the public.
CMRS One-Way Paging Services include certain licensees which
formerly were licensed as part of the Private Radio Services (e.g.,
Private Paging) and others formerly licensed as part of the Common
Carrier Radio Services (e.g., Public Mobile One-Way Paging). While
specific rules pertaining to each covered service remain in separate
Parts 22 and 90; general rules for CMRS are contained in Part 20. We
have replaced the Public Mobile One-Way Paging regulatory fee
category with a CMRS One-Way Paging Services category for regulatory
fee collection purposes. Each licensee in the Public Mobile One-Way
Paging Services will pay an annual regulatory fee for each paging
unit, assigned to its customers, including resellers of its
services. For FY 1996, the regulatory fee is $.02 per unit.
2. Mass Media Services
17. The regulatory fees for the Mass Media fee category apply to
broadcast licensees and permittees. Noncommercial Educational
Broadcasters are exempt from regulatory fees.
a. Commercial AM and FM Radio
18. These categories include licensed Commercial AM (Classes A,
B, C, and D) and FM (Classes A, B, B1, C, C1, C2, and C3) Radio
Stations operating under Part 73 of the Commission's Rules.5
The regulatory fees for AM and FM Stations for FY 1996 are as
follows:
---------------------------------------------------------------------------
\5\ The Commission acknowledges that certain stations operating
in Puerto Rico and Guam have been assigned a higher level station
class than would be expected if the station were located on the
mainland. Although this results in a higher regulatory fee, we
believe that the increased interference protection associated with
the higher station class is necessary and justifies the fee.
AM Radio:
Class A..................................................... $1,125
Class B..................................................... 630
Class C..................................................... 255
Class D..................................................... 315
FM Radio:
Classes C, C1, C2, B........................................ 1,125
Classes A, B1, C3........................................... 755
b. Construction Permits--Commercial AM Radio
19. This category includes holders of permits to construct new
Commercial AM Stations. For FY 1996, permittees will pay a fee of
$125 for each permit held. Upon issuance of an operating license,
this fee would no longer be applicable and licensees would be
required to pay the applicable fee for the designated class of the
station.
c. Construction Permits--Commercial FM Radio
20. This category includes holders of permits to construct new
Commercial FM Stations. For FY 1996, permittees will pay a fee of
$625 for each permit held. Upon issuance of an operating license,
this fee would no longer be applicable. Instead, licensees would pay
a regulatory fee based upon the designated class of the station.
d. Commercial Television Stations
21. This category includes licensed Commercial VHF and UHF
Television Stations covered under Part 73 of the Commission's Rules,
except commonly owned Television Satellite Stations, addressed
separately below. Markets are Nielsen Designated Market Areas (DMA)
as listed in the Television & Cable Factbook, Stations Volume No.
63, 1995 Edition, Warren Publishing, Inc. The fees for each category
of station are as follows:
VHF Markets 1-10--$22,700
VHF Markets 11-25--$20,175
VHF Markets 26-50--$15,125
VHF Markets 51-100--$10,100
VHF Remaining Markets--$6,300
UHF Markets 1-10--$18,150
UHF Markets 11-25--$16,150
UHF Markets 26-50--$12,100
UHF Markets 51-100--$8,075
UHF Remaining Markets--$5,025
e. Commercial Television Satellite Stations
22. Commonly owned Television Satellite Stations in any market
(authorized pursuant to Note 5 of Section 73.3555 of the
Commission's Rules) that retransmit programming of the primary
station are assessed a fee of $625 annually. Only those stations
designated as Television Satellite Stations in the 1995 Edition of
the Television and Cable Factbook are eligible to submit the fee
applicable to Television Satellite Stations. All other television
licensees are subject to the regulatory fee payment required for
their class of station and market.
f. Construction Permits--Commercial VHF Television Stations
23. This category includes holders of permits to construct new
Commercial VHF Television Stations. For FY 1996, VHF permittees will
pay an annual regulatory fee of $5,025. Upon issuance of an
operating license, this fee would no longer be applicable. Instead,
licensees would pay a fee based upon the designated market of the
station.
g. Construction permits--Commercial UHF Television Stations
24. This category includes holders of permits to construct new
UHF Television Stations. For FY 1996, UHF Television permittees will
pay an annual regulatory fee of $4,025. Upon issuance of an
operating license, this fee would no longer be applicable. Instead,
licensees would pay a fee based upon the designated market of the
station.
h. Construction Permits--Satellite Television Stations
25. The fee for UHF and VHF Television Satellite Station
construction permits for FY 1996 is $230. An individual regulatory
fee payment is to be made for each Television Satellite Station
construction permit held.
i. Low Power Television, FM Translator and Booster Stations, TV
Translator and Booster Stations
26. This category includes Low Power UHF/VHF Television stations
operating under Part 74 of the Commission's Rules with a transmitter
power output limited to 0.01 kw for a UHF facility and, generally, 1
kw for a VHF facility. Low Power Television (LPTV) stations may
retransmit the programs and signals of a TV Broadcast Station,
originate programming, and/or operate as a subscription service.
This category also includes translators and boosters operating under
Part 74 which rebroadcast the signals of full service stations on a
frequency different from the parent station (translators) or on the
same frequency (boosters). The stations in this category are
secondary to full service stations in terms of frequency priority.
We have also received requests for waivers of the regulatory fees
from operators of community based Translators. These Translators are
generally not affiliated with commercial broadcasters, they are
nonprofit, nonprofitable, or only marginally profitable, serve small
rural communities, and are supported financially by the residents of
the communities served. We are aware of the difficulties these
Translators have in paying even minimal regulatory fees, and we have
addressed those concerns in the ruling on reconsideration of the FY
1994 Order. Community based Translators are exempt from regulatory
fees. For FY 1996, licensees in this category will pay a regulatory
fee of $170 for each license held.
j. Broadcast Auxiliary Stations
27. This category includes licensees of remote pickup stations,
Aural Broadcast Auxiliary Stations, Television Broadcast Auxiliary
Stations, and Low Power Auxiliary Stations, authorized under Part 74
of the Commission's Rules. Auxiliary Stations are generally
associated with a particular television or radio broadcast station
or cable television system. For FY 1996, licensees of Commercial
Auxiliary Stations will pay a $30 annual regulatory fee on a per
call sign basis.
[[Page 16446]]
k. Multipoint Distribution Service
28. This category covers Multipoint Distribution Service (MDS),
and Multichannel Multipoint Distribution Service (MMDS), authorized
under Part 21 of the Commission's Rules to use microwave frequencies
for video and data distribution within the United States. For FY
1996, MDS and MMDS stations will pay an annual regulatory fee of
$140 per call sign.
3. Cable Services
a. Cable Television Systems
29. This category includes operators of Cable Television
Systems, providing or distributing programming or other services to
subscribers under Part 76 of the Commission's Rules. For FY 1996
Cable Systems will pay a regulatory fee of $.50 per
subscriber.6 Payments for Cable Systems are to be made on a per
subscriber by community unit basis as of December 31, 1995, as
reported on each Cable Systems's 1995 Annual Report of Cable Systems
(FCC Form 325). Cable Systems should determine their subscriber
numbers by calculating the number of single family dwellings, the
number of individual households in multiple dwelling units, e.g.,
apartments, condominiums, mobile home parks, etc., paying at the
basic subscriber rate, the number of bulk rate customers and the
number of courtesy or fee customers. In order to determine the
number of bulk rate subscribers, a system should divide its bulk
rate charge by the annual subscription rate for individual
households. See FY 1994 Order, Appendix B at para. 31.
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\6\ Cable systems are to pay their regulatory fees on a per
subscriber basis rather than per 1,000 subscribers as set forth in
the statutory fee schedule. See FY 1994 Order at para. 100.
---------------------------------------------------------------------------
b. Cable Antenna Relay Service
30. This category includes Cable Antenna Relay Service (CARS)
stations used to transmit television and related audio signals,
signals of AM and FM Broadcast Stations and cablecasting from the
point of reception to a terminal point from where the signals are
distributed to the public by a Cable Television System. For FY 1996,
licensees will pay an annual regulatory fee of $295 per CARS
license.
4. Common Carrier Services
a. Fixed Radio Services
31. Domestic Public Fixed Radio Service: This category includes
licensees in the Point-to-Point Microwave Radio Service, Local
Television Transmission Radio Service, Digital Electronic Message
Service, authorized under Part 21 of the Commission's Rules to use
microwave frequencies for video and data distribution within the
United States. For FY 1996, Domestic Public Fixed Radio Service
licensees pay a $140 annual regulatory fee per call sign.
b. Interstate Telephone Service Providers
32. This category includes Inter-Exchange Carriers (IXCs), Local
Exchange Carriers (LECs), Competitive Access Providers (CAPs),
domestic and international carriers that provide operator services,
Wide Area Telephone Service (WATS), 800, 900, telex, telegraph,
video, other switched, interstate access, special access, and
alternative access services either by using their own facilities or
by reselling facilities and services of other carriers or telephone
carrier holding companies, and companies other than traditional
local telephone companies that provide interstate access services to
long distance carriers and other customers. This category also
includes pre-paid calling card providers. These common carriers,
including resellers, must submit fee payments based upon their
proportionate share of gross interstate revenues using the
methodology that we have adopted for calculating contributions to
the TRS fund. See Telecommunications Relay Services, 8 FCC Rcd 5300
(1993), 58 FR 39671 (July 26, 1993). In order to avoid imposing any
double payment burden on resellers, we will permit carriers to
subtract from their gross interstate revenues, as reported to NECA
in connection with their TRS contribution, any payments made to
underlying common carriers for telecommunications facilities and
services, including payments for interstate access service, that are
sold in the form of interstate service. For this purpose, resold
telecommunications facilities and services are only intended to
include payments that correspond to revenues that will be included
by another carrier reporting interstate revenue. For FY 1996,
carriers should multiply their adjusted gross revenue figure (gross
revenue reduced by the total amount of their payments to underlying
common carriers for telecommunications facilities or services) by
the factor 0.00089 to determine the appropriate fee for this
category of service. You may want to use the following worksheet to
determine your fee payment:
------------------------------------------------------------------------
Total Interstate
------------------------------------------------------------------------
(1) Revenue reported in TRS Fund worksheets
(2) Less: Access charges paid
(3) Less: Other telecommunications facilities and
services taken for resale
(4) Adjusted revenues (1) minus (2) minus (3)
(5) Fee factor..................................... ....... 0.00089
(6) Fee due (4) times (5)
------------------------------------------------------------------------
5. International Services
a. Earth Stations
33. Very Small Aperture Terminal (VSAT) Earth Stations,
equivalent C-Band Earth Stations and antennas, and earth station
systems comprised of very small aperture terminals operate in the 12
and 14 GHz bands and provide a variety of communications services to
other stations in the network. VSAT systems consist of a network of
technically-identical small Fixed-Satellite Earth Stations which
often include a larger hub station. VSAT Earth Stations and C-Band
Equivalent Earth Stations are authorized pursuant to Part 25 of the
Commission's Rules. Mobile Satellite Earth Stations, operating
pursuant to Part 25 of the Commission's Rules under blanket licenses
for mobile antennas (transceivers), are smaller than one meter and
provide voice or data communications, including position location
information for mobile platforms such as cars, buses or
trucks.7 Fixed-Satellite Transmit/Receive and Transmit Only
Earth Station antennas, authorized or registered under Part 25 of
the Commission's Rules, are operated by private and public carriers
to provide telephone, television, data, and other forms of
communications. Included in this category are telemetry, tracking,
and control (TT&C) earth stations and earth station uplinks. For FY
1996, licensees of VSATs, Mobile Satellite Earth Stations, and
Fixed-Satellite Transmit/Receive and Transmit Only Earth Stations
will pay a fee of $335 per authorization or registration as well as
a separate fee of $335 for each associated Hub Station.
---------------------------------------------------------------------------
\7\ Mobile earth stations are vehicle-based units capable of
operation while the vehicle is in motion. In contrast, transportable
units are moved to a fixed location and operate in a stationary
(fixed) mode. Both are assessed the same regulatory fee for FY 1996.
---------------------------------------------------------------------------
34. Receive only earth stations. For FY 1996, there is no
regulatory fee for receive-only earth stations.
b. Space Stations (Geosynchronous)
35. Geosynchronous Space Stations are domestic and international
satellites positioned in orbit to remain approximately fixed
relative to the earth. Most are authorized under Part 25 of the
Commission's Rules to provide communications between satellites and
earth stations on a common carrier and/or private carrier basis. In
addition, this category includes Direct Broadcast Satellite (DBS)
Service which includes space stations authorized under Part 100 of
the Commission's rules to transmit or re-transmit signals for direct
reception by the general public encompassing both individual and
community reception. For FY 1996, entities authorized to operate
geosynchronous space stations (including DBS satellites) will be
assessed an annual regulatory fee of $63,500 per operational station
in orbit. Payment is required for any geosynchronous satellite that
has been launched and tested and is authorized to provide service.
c. Low Earth Orbit Satellites (LEOs)
36. Low Earth Orbit Satellite Systems are space stations that
orbit the earth in non-geosynchronous orbit. They are authorized
under Part 25 of the Commission's rules to provide communications
between satellites and earth stations on a common carrier and/or
private carrier basis. For FY 1996, entities authorized to operate
Low Earth Orbit Satellite Systems will be assessed an annual
regulatory fee of $87,725 per operational system in orbit. Payment
is required for any LEO System that has one or more operational
satellites.
[[Page 16447]]
d. Signatories
37. A Signatory to INMARSAT is an Administration or government,
or the telecommunications entity designated as sole operating entity
by an Administration or government, which participates in the
International Mobile Satellite Organization (INMARSAT) in order to
develop and operate a global maritime satellite telecommunication
system which serves maritime commercial and safety needs of the
United States and foreign countries. A Signatory to INTELSAT is an
Administration or government, or the telecommunications entity
designated as sole operating entity by an Administration or
government, which participates in the International
Telecommunications Satellite Organization (INTELSAT) in order to
develop, construct, operate and maintain the space segment of the
global commercial telecommunications satellite system established
under the Interim Agreement and Special Agreement signed by
Governments on August 20, 1964. For FY 1996, Signatories to INMARSAT
and INTELSAT will be assessed an annual regulatory fee of $217,575
in order to recover the cost of the Commission's regulatory
activities associated with such entities.
e. International Bearer Circuits
38. Regulatory fees for International Bearer Circuits are to be
paid by the facilities-based common carrier activating the circuit
in any transmission facility for the provision of service to an end
user or resale carrier. Payment of the fee for bearer circuits by
private submarine cable operators is required for circuits sold on
an indefeasible right of use (IRU) basis or leased to any customer
other than an international common carrier authorized by the
Commission to provide U.S. international common carrier services.
Compare FY 1994 Order at 5367. The fee is based upon active 64 Kbps
circuits, or equivalent circuits. Under this formulation, 64 Kbps
circuits or their equivalent will be assessed a fee. Equivalent
circuits include the 64 Kbps circuit equivalent of larger bit stream
circuits. For example, the 64 Kbps circuit equivalent of a 2.048
Mbps circuit is 30 64 Kbps circuits. Analog circuits such as 3 and 4
KHz circuits used for international service are also included as 64
Kbps circuits. However, circuits derived from 64 Kbps circuits by
the use of digital circuit multiplication systems are not equivalent
64 Kbps circuits. Such circuits are not subject to fees. Only the 64
Kbps circuit from which they have been derived will be subject to
payment of a fee. For FY 1996, the regulatory fee is $4.00 for each
active 64 Kbps circuit or equivalent. For analog television channels
we will assess fees as follows:
------------------------------------------------------------------------
No. of
equivalent
Analog Television Channel Size in MHz 64 Kbps
Circuits
------------------------------------------------------------------------
36.......................................................... 630
24.......................................................... 288
18.......................................................... 240
------------------------------------------------------------------------
f. International Public Fixed
39. This fee category includes common carriers authorized under
Part 23 of the Commission's Rules to provide radio communications
between the United States and a foreign point via microwave or HF
troposcatter systems, other than satellites and satellite earth
stations, but not including service between the United States and
Mexico and the United States and Canada using frequencies above 72
MHz. For FY 1996, International Public Fixed Radio Service licensees
will pay a $200 annual regulatory fee per call sign.
g. International (HF) Broadcast
40. This category covers International Broadcast Stations
licensed under Part 73 of the Commission's Rules to operate on
frequencies in the 5,950 khz to 26,100 Khz range to provide service
to the general public in foreign countries. For FY 1996,
International HF Broadcast Stations will pay an annual regulatory
fee of $255 per station license.
[FR Doc. 96-9192 Filed 4-12-96; 8:45 am]
BILLING CODE 6712-01-P