[Federal Register Volume 63, Number 249 (Tuesday, December 29, 1998)]
[Rules and Regulations]
[Pages 71601-71604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34237]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 73 and 74

[MM Docket No. 98-98; FCC 98-324]


Call Sign Assignments for Broadcast Stations

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
modifies its practices and procedures regarding the assignment of call 
signs to radio and television broadcast stations. The document replaces 
the Commission's existing manual procedures with an on-line system for 
the electronic preparation and submission of requests for the 
reservation and authorization of new and modified call signs. 
Implementation of the on-line call sign system will enhance the speed 
and certitude of radio and television broadcast station call sign 
assignments, thereby providing better service to all broadcast 
licensees and permittees, and will also conserve Commission resources.

EFFECTIVE DATE: December 29, 1998.

FOR FURTHER INFORMATION CONTACT: James J. Brown or Jerianne Timmerman 
at (202) 418-1600.

SUPPLEMENTARY INFORMATION:
    1. In this Report and Order adopted December 8, 1998, and released 
December 16, 1998, the Federal Communications Commission is modifying 
its practices and procedures regarding the assignment of call signs to 
radio and television broadcast stations. As proposed in the Notice of 
Proposed Rulemaking in this proceeding, 63 FR 38357 (July 16, 1998), 
this Report and Order replaces the Commission's existing manual 
procedures for assigning call signs with an on-line system for the 
electronic preparation and submission of requests for the reservation 
and authorization of new and modified call signs.
    2. As described in detail in the Report and Order, implementation 
of the on-line call sign system will enhance the speed and certitude of 
radio and television broadcast station call sign assignments, thereby 
providing better service to all broadcast licensees and permittees, and 
will also conserve Commission resources. For these reasons, the Report 
and Order requires broadcast licensees and permittees to utilize the 
new on-line system in making call sign requests. However, as the 
Commission seeks to avoid any disruption to broadcast licensees and 
permittees who may not have ready access to the Internet, the Report 
and Order allows applicants to request a waiver of the Commission's 
requirement to utilize the on-line system to request new or modified 
call signs for their stations.
    3. The complete text of this Report and Order is available for 
inspection and copying during normal business hours in the Federal 
Communications Commission Reference Center (Room 239), 1919 M Street, 
N.W., Washington, D.C., and it may be purchased from the Commission's 
copy contractor, International Transcription Service, Inc., 1231 20th 
Street, N.W., Washington, D.C. 20036, (202) 857-3800.

Final Regulatory Flexibility Act Analysis (FRFA)

Summary

    4. As required by the Regulatory Flexibility Act (RFA), 5 U.S.C. 
603, an Initial Regulatory Flexibility Analysis (IRFA) was incorporated 
in the Notice of Proposed Rulemaking (NPRM) in this proceeding. The 
Commission sought written public comments on the proposals in the NPRM, 
including on the IRFA. The Commission's Final Regulatory Flexibility 
Analysis (FRFA) in this Report and Order conforms to the RFA, as 
amended by the Contract With America Advancement Act of 1996.

Need for and Objectives of Action

    5. This Report and Order adopts modified procedures regarding the 
assignment of call signs for radio and television broadcast stations. 
By replacing its existing manual procedures with a new on-line system 
for the electronic preparation and submission of requests for new and 
modified call signs, the Commission will enhance the speed and 
certitude of radio and television broadcast station call sign 
assignments, while at the same time conserving Commission resources.

Significant Issues Raised by Public in Response to Initial Analysis

    6. No comments were received specifically in response to the IRFA 
contained in the NPRM. However, two commenters did address an issue 
relating to call signs for low power television (LPTV) stations, whose 
licensees are generally small businesses. One commenter opposed 
allowing LPTV permittees to reserve four-letter call signs, but another 
commenter opposed this position. The Commission concluded that there 
was no compelling reason to prevent LPTV permittees from obtaining 
four-letter call signs via the new electronic system if they wish to 
replace their Commission-assigned five character alpha-numeric call 
signs.

Description and Estimate of the Number of Small Entities Involved

    7. Definition of a ``Small Business.'' Under the RFA, small 
entities may include small organizations, small businesses, and small 
governmental jurisdictions. 5 U.S.C. 601(6). The RFA, 5 U.S.C. 601(3), 
generally defines the term ``small business'' as having the same 
meaning as the term ``small business concern'' under the Small Business 
Act, 15 U.S.C. 632. A small business concern is one which: (1) is 
independently owned and operated; (2) is not dominant in its field of 
operation; and (3) satisfies any additional criteria established by the 
Small Business Administration (SBA). Pursuant to 5 U.S.C. 601(3), the 
statutory definition of a small business applies ``unless an agency 
after consultation with the Office of Advocacy of the SBA and after 
opportunity for public comment, establishes one or more definitions of 
such term which are appropriate to the activities of the agency and 
publishes such definition(s) in the Federal Register.''
    8. In the IRFA we stated that we tentatively believe that the SBA's 
definition of ``small business'' greatly overstates the number of radio 
and television broadcast stations that are small businesses and is not 
particularly suitable for the purpose of determining the impact of the 
proposals in the NPRM on small television and radio stations. While we 
utilized the SBA's definition to determine the number of small 
businesses to which the revised call sign procedures would apply, we 
reserved the right to adopt a more suitable definition of ``small 
business'' as applied to radio and television broadcast stations. We 
received no comment in response to the IRFA on how to define radio and 
television broadcast ``small businesses.'' Therefore, we will continue 
to utilize the SBA's definitions for the purposes of this FRFA.
    9. Issues in Applying the Definition of a ``Small Business.'' As 
discussed below, we could not precisely apply the foregoing definition 
of ``small business'' in developing our estimates of the number of 
small entities to which the amended call sign procedures will apply. 
Our estimates reflect our best judgments based on the data available to 
us.
    10. An element of the definition of ``small business'' is that the 
entity not

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be dominant in its field of operation. We are unable at this time to 
define or quantify the criteria that would establish whether a specific 
radio or television station is dominant in its field of operation. 
Accordingly, the following estimates of small businesses to which the 
new call sign rules and procedures will apply do not exclude any radio 
or television station from the definition of a small business on this 
basis and are therefore overinclusive to that extent. An additional 
element of the definition of ``small business'' is that the entity must 
be independently owned and operated. As discussed further below, we 
could not fully apply this criterion, and our estimates of small 
businesses to which the amended call sign procedures may apply may be 
overinclusive to this extent.
    11. With respect to applying the revenue cap, the SBA has defined 
``annual receipts'' specifically in 13 CFR 121.104, and its 
calculations include an averaging process. We do not currently require 
submission of financial data from licensees that we could use in 
applying the SBA's definition of a small business. Thus, for purposes 
of estimating the number of small entities to which the rules apply, we 
are limited to considering the revenue data that are publicly 
available, and the revenue data on which we rely may not correspond 
completely with the SBA definition of annual receipts.
    12. Under SBA criteria for determining annual receipts, if a 
concern has acquired an affiliate or been acquired as an affiliate 
during the applicable averaging period for determining annual receipts, 
the annual receipts in determining size status include the receipts of 
both firms. 13 CFR 121.104(d)(1). The SBA defines affiliation in 13 CFR 
121.103. In this context, the SBA's definition of affiliate is 
analogous to our attribution rules. Generally, under the SBA's 
definition, concerns are affiliates of each other when one concern 
controls or has the power to control the other, or a third party or 
parties controls or has the power to control both. 13 CFR 
121.103(a)(1). The SBA considers factors such as ownership, management, 
previous relationships with or ties to another concern, and contractual 
relationships, in determining whether affiliation exists. 13 CFR 
121.103(a)(2). Instead of making an independent determination of 
whether television stations were affiliates based on SBA's definitions, 
we relied on the databases available to us to provide us with that 
information.
    13. Estimates Based on Census Data. The amended call sign rules and 
procedures will apply to television and LPTV broadcasting licensees and 
permittees and radio broadcasting licensees and permittees. The SBA 
defines a television broadcasting station that has no more than $10.5 
million in annual receipts as a small business. Television broadcasting 
stations consist of establishments primarily engaged in broadcasting 
visual programs by television to the public, except cable and other pay 
television services. Included in this industry are commercial, 
religious, educational, and other television stations. Also included 
are establishments primarily engaged in television broadcasting and 
which produce taped television program materials. Separate 
establishments primarily engaged in producing taped television program 
materials are classified under another SIC number.
    14. There were 1,509 television stations operating in the Nation in 
1992. That number has remained fairly steady as indicated by the 
approximately 1,583 operating television broadcasting stations in the 
Nation as of August 1998. For 1992, the number of television stations 
that produced less than $10.0 million in revenue was 1,155 
establishments. Thus, the amended call sign procedures will affect some 
of the approximately 1,583 television stations; approximately 77%, or 
1219, of those stations are considered small businesses. The amended 
call sign procedures will also apply to LPTV stations that choose to 
apply for four letter call signs, and we believe that the vast majority 
of the existing 2088 LPTV stations are small businesses. These 
estimates may overstate the number of small entities since the revenue 
figures on which they are based do not include or aggregate revenues 
from non-television affiliated companies.
    15. The amended call sign rules and procedures will also affect 
radio stations. The SBA defines a radio broadcasting station that has 
no more than $5 million in annual receipts as a small business. A radio 
broadcasting station is an establishment primarily engaged in 
broadcasting aural programs by radio to the public. Included in this 
industry are commercial, religious, educational, and other radio 
stations. Radio broadcasting stations that primarily are engaged in 
radio broadcasting and that produce radio program materials are 
similarly included. However, radio stations that are separate 
establishments and are primarily engaged in producing radio program 
material are classified under another SIC number. The 1992 census 
indicates that 96 percent (5,861 of 6,127) of radio station 
establishments produced less than $5 million in revenue in 1992. 
Official Commission records indicate that 11,334 individual radio 
stations were operating in 1992. As of August 1998, official Commission 
records indicate that 12,365 radio stations were operating. We conclude 
that a similarly high percentage (96 percent) of current radio 
broadcasting licensees are small entities, some of which will be 
affected by the amended call sign procedures. These estimates may 
overstate the number of small entities since the revenue figures on 
which they are based do not include or aggregate revenues from non-
radio affiliated companies.

Description of Projected Recording, Recordkeeping, and Other Compliance 
Requirements

    16. The measures adopted in the Report and Order will reduce the 
burdens on broadcast station licensees and permittees applying for or 
requesting a change in their station call signs. Replacement of the 
current manual call sign assignment process with an entirely electronic 
system will reduce the overall administrative burden upon both 
broadcast licensees and the Commission. Given the expected benefits of 
the new electronic system, all broadcast licensees and permittees will 
be required to utilize the system to make call sign requests. We 
believe that utilization of the new on-line system will, among other 
things, increase the speed and certitude of the call sign assignment 
process, conserve Commission resources, and aid licensees and 
permittees by informing them of errors in their call sign requests 
before they are actually sent. The measures adopted in the Report and 
Order do not alter the Commission's current rules and policies 
regarding call signs (such as what constitutes a valid call sign), but 
modify the procedures by which call signs are assigned.

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

    17. This Report and Order implements the Mass Media Bureau's new 
on-line call sign reservation system. Given the expected benefits of 
the new electronic system for both broadcast station licensees and the 
Commission, we determined to require all broadcast licensees and 
permittees to utilize the system for reserving call signs. No comments 
were submitted opposing mandatory use of the electronic call sign 
system, and none contended that use of the system would impose a 
significant economic impact on small entities, although one

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commenter supported a phase in period before use of the system would 
become mandatory. Given the significant inefficiencies, for both 
licensees and the Commission, associated with maintaining a manual call 
sign request system following the implementation of our new electronic 
system, we declined to adopt a phase in period for the new on-line 
system. However, as we seek to avoid any disruption to broadcast 
licensees and permittees (particularly small or rural broadcasters) who 
may not have ready access to the Internet, we will allow applicants to 
request a waiver of our requirement to utilize the on-line system to 
make call sign requests.

Report to Congress

    18. The Commission will send a copy of the Report and Order, 
including this FRFA, in a report to be sent to Congress pursuant to the 
Small Business Regulatory Enforcement Fairness Act of 1996. See 5 
U.S.C. 801(a)(1)(A). In addition, the Commission will send a copy of 
the Report and Order, including the FRFA, to the Chief Counsel for 
Advocacy of the SBA.
    19. Authority for issuance of this Report and Order is contained in 
Sections 4(i), 4(j) and 303 of the Communications Act of 1934, as 
amended, 47 U.S.C. 154(i), 154(j) and 303.

List of Subjects in 47 CFR parts 73 and 74

    Radio broadcasting, Reporting and recordkeeping requirements, 
Television broadcasting.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    Parts 73 and 74 of Chapter I of Title 47 of the Code of Federal 
Regulations are amended as follows:

PART 73--RADIO BROADCAST SERVICES

    1. The authority citation for part 73 continues to read as follows:

    Authority: 47 U.S.C. 154, 303, 334, and 336.

    2. Section 73.3550 is revised to read as follows:


Sec. 73.3550  Requests for new or modified call sign assignments.

    (a) All requests for new or modified call sign assignments for 
radio and television broadcast stations shall be made via the FCC's on-
line call sign reservation and authorization system accessible through 
the Internet's World Wide Web by specifying http://www.fcc.gov. 
Licensees and permittees may utilize this on-line system to determine 
the availability and licensing status of any call sign; to select an 
initial call sign for a new station; to change a station's currently 
assigned call sign; to modify an existing call sign by adding or 
deleting an ``-FM'' or ``-TV'' suffix; to exchange call signs with 
another licensee or permittee in the same service; or to reserve a 
different call sign for a station being transferred or assigned.
    (b) No request for an initial call sign assignment will be accepted 
from a permittee for a new radio or full-service television station 
until the FCC has granted a construction permit. Each such permittee 
shall request the assignment of its station's initial call sign 
expeditiously following the grant of its construction permit. All 
initial construction permits for low power TV stations will be issued 
with a five-character low power TV call sign, in accordance with 
Sec. 74.783(d) of this chapter.
    (c) Following the filing of a transfer or assignment application, 
the proposed assignee/transferee may request a new call sign for the 
station whose license or construction permit is being transferred or 
assigned. No change in call sign assignment will be effective until 
such transfer or assignment application is granted by the FCC and 
notification of consummation of the transaction is received by the FCC.
    (d) Where an application is granted by the FCC for transfer or 
assignment of the construction permit or license of a station whose 
existing call sign conforms to that of a commonly-owned station not 
part of the transaction, the new licensee of the transferred or 
assigned station shall expeditiously request a different call sign, 
unless consent to retain the conforming call sign has been obtained 
from the primary holder and from the licensee of any other station that 
may be using such conforming call sign.
    (e) Call signs beginning with the letter ``K'' will not be assigned 
to stations located east of the Mississippi River, nor will call signs 
beginning with the letter ``W'' be assigned to stations located west of 
the Mississippi River.
    (f) Only four-letter call signs (plus an LP suffix or FM or TV 
suffixes, if used) will be assigned. However, subject to the other 
provisions of this section, a call sign of a station may be conformed 
to a commonly owned station holding a three-letter call sign assignment 
(plus FM, TV or LP suffixes, if used).
    (g) Subject to the foregoing limitations, applicants may request 
call signs of their choice if the combination is available. Objections 
to the assignment of requested call signs will not be entertained at 
the FCC. However, this does not hamper any party from asserting such 
rights as it may have under private law in some other forum. Should it 
be determined by an appropriate forum that a station should not utilize 
a particular call sign, the initial assignment of a call sign will not 
serve as a bar to the making of a different assignment.
    (h) Stations in different broadcast services (or operating jointly 
in the 535-1605 kHz band and in the 1605-1705 kHz band) which are under 
common control may request that their call signs be conformed by the 
assignment of the same basic call sign if that call sign is not being 
used by a non-commonly owned station. For the purposes of this 
paragraph, 50% or greater common ownership shall constitute a prima 
facie showing of common control.
    (i) The provisions of this section shall not apply to International 
broadcast stations or to stations authorized under part 74 of this 
chapter (except as provided in Sec. 74.783).
    (j) A change in call sign assignment will be made effective on the 
date specified in the postcard acknowledging the assignment of the 
requested new call sign and authorizing the change. Unless the 
requested change in call sign assignment is subject to a pending 
transfer or assignment application, the requester is required to 
include in its on-line call sign request a specific effective date to 
take place within 45 days of the submission of its electronic call sign 
request. Postponement of the effective date will be granted only in 
response to a timely request and for only the most compelling reasons.
    (k) Four-letter combinations commencing with ``W'' or ``K'' which 
are assigned as call signs to ships or to other radio services are not 
available for assignment to broadcast stations, with or without the ``-
FM'' or ``-TV'' suffix.
    (l) Users of nonlicensed, low-power devices operating under part 15 
of this chapter may use whatever identification is currently desired, 
so long as propriety is observed and no confusion results with a 
station for which the FCC issues a license.
    (m) Where a requested call sign, without the ``-FM,'' ``-TV'' or 
``-LP'' suffix, would conform to the call sign of any other non-
commonly owned station(s) operating in a different service, an 
applicant utilizing the on-line reservation and authorization system 
will be required to certify that consent to use the secondary call sign 
has been obtained from the holder of the primary call sign.

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PART 74--EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER 
PROGRAM DISTRIBUTIONAL SERVICES

    3. The authority citation for part 74 continues to read as follows:

    Authority: 47 U.S.C. 154, 303, 307, and 554.

    4. Section 74.783 is amended by revising paragraph (e) to read as 
follows:


Sec. 74.783  Station identification.

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    (e) Low power TV permittees or licensees may request that they be 
assigned four-letter call signs in lieu of the five-character alpha-
numeric call signs described in paragraph (d) of this section. Parties 
requesting four-letter call signs are to follow the procedures 
delineated in Sec. 73.3550 of this chapter. Such four-letter call signs 
shall begin with K or W; stations west of the Mississippi River will be 
assigned an initial letter K and stations east of the Mississippi River 
will be assigned an initial letter W. The four-letter call sign will be 
followed by the suffix ``-LP.''
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[FR Doc. 98-34237 Filed 12-28-98; 8:45 am]
BILLING CODE 6712-01-P