Advanced Search

Assessment and Collection of Regulatory Fees for Fiscal Year 2008


Published: 2008-08-26

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
ACTION:
Final rule.
SUMMARY:
In this document, we amend our Schedule of Regulatory Fees to collect $312,000,000 in regulatory fees for Fiscal Year (FY) 2008, pursuant to section 9 of the Communications Act of 1934, as amended (the Act). These fees are mandated by Congress and are collected to recover the regulatory costs associated with the Commission's enforcement, policy and rulemaking, user information, and international activities.
DATES:
Effective September 25, 2008.
FOR FURTHER INFORMATION CONTACT:
CORES Helpdesk at (877) 480-3201, option 4, or ARINQUIRIES@fcc.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
Heading
Paragraph No.
I. Introduction
1
II. Report and Order
3
A. Calculation of Revenue and Fee Requirements
4
B. Additional Adjustments to Payment Units
5
1. Commercial Mobile Radio (“CMRS”) Messaging Service
7
2. Private Land Mobile Radio Service (“PLMRS”)
9
3. Regulatory Fee Obligations for AM Expanded Band Broadcasters
11
4. International Bearer Circuits
14
a. Background
14
b. Discussion
19
APPENDIX AFinal Regulatory Flexibility Analysis
APPENDIX BList of Commenters
ATTACHMENTS
Attachment ASources of Payment Unit Estimates for FY 2008
Attachment BCalculation of FY 2008 Revenue Requirements and Pro-Rata Fees
Attachment CFY 2008 Schedule of Regulatory Fees
Attachment DFactors, Measurements, and Calculations That Determine Station Contours and Population Coverages
Attachment EFY 2007 Schedule of Regulatory Fees
I. Introduction
1. In this Report and Order we conclude a proceeding to collect $312,000,000 in regulatory fees for Fiscal Year (“FY”) 2008, pursuant to section 9 of the Communications Act of 1934, as amended (the “Act”). Section 9 regulatory fees are mandated by Congress and are collected to recover the regulatory costs associated with the Commission's enforcement, policy and rulemaking, user information, and international activities. 1
In this annual regulatory fee proceeding, we retain the established methods, policies, and procedures for collecting section 9 regulatory fees adopted by the Commission in prior years. Consistent with our established practice, we intend to collect these regulatory fees during a filing window in September 2008 in order to collect the required amount by the end of our fiscal year.
2. As a general matter, our annual regulatory fee rulemakings must be concluded in a short time frame to allow regulatees to make their payments for the relevant fiscal year that fund Commission operations. These yearly rulemaking proceedings are not conducive to exploring more general regulatory fee issues. We have not conducted an in-depth review of our regulatory fee methodology since 1994. 2
We, however, adopt a Further Notice of Proposed Rulemaking (“FNPRM”) to explore how we can comprehensively make the Commission's regulatory fee process more equitable.
II. Report and Order
3. On May 8, 2008, we released a Notice of Proposed Rulemaking and Order (“ FY 2008 NPRM ”) seeking comment on regulatory fee issues for FY 2008. 3
The section 9 regulatory fee proceeding is an annual rulemaking process to ensure the Commission collects the fee amount required by Congress each year. In the FY 2008 NPRM , we proposed to largely retain the section 9 regulatory fee methodology used in the prior fiscal year. We received nine comments and 12 reply comments. 4
We address the issues raised in our FY 2008 NPRM below.
A. Calculation of Revenue and Fee Requirements
4. In our FY 2008 regulatory fee assessment, we use the same section 9 regulatory fee assessment methodology adopted for FY 2007. Each fiscal year, the Commission proportionally allocates the total amount that must be collected via section 9 regulatory fees. The results of our FY 2008 regulatory fee assessment methodology (including a comparison to the prior year's results) are contained in Attachment B. To collect the $312,000,000 required by Congress, we adjust the FY 2007 amount upward by approximately 7.5 percent. Consistent with past practice, we then divide the FY 2008 amount by the number of payment units in each fee category to determine the unit fee. 5
As in prior years, for cases involving small fees, e.g. , licenses that are renewed over a multiyear term, we divide the resulting unit fee by the term of the license and then round these unit fees consistent with the requirements of section 9(b)(2) of the Act.
B. Additional Adjustments to Payment Units
5. In calculating the FY 2008 regulatory fees listed in Attachment C, we further adjusted the FY 2007 list of payment units (Attachment A) based upon licensee databases and industry and trade group projections. In some instances, Commission licensee databases were used; in other instances, actual prior year payment records and/or industry and trade association projections were used in determining the payment unit counts. 6
Where appropriate, we adjusted and rounded our final estimates to take into consideration events that may impact the number of units for which regulatees submit payment, such as waivers and exemptions that may be filed in FY 2008, and fluctuations in the number of licensees or station operators due to economic, technical, or other reasons. Therefore, our estimated FY 2008 payment units are based on FY 2007 actual payment units, but the number may have been rounded or adjusted slightly to account for these variables.
6. We consider additional factors in determining regulatory fees for AM and FM radio stations. These factors are facility attributes and the population served by the radio station. The calculation of the population served is determined by coupling current U.S. Census Bureau data with technical and engineering data, as detailed in Attachment D. Consequently, the population served, as well as the class and type of service (AM or FM), determines the regulatory fee amount to be paid. 7
1. Commercial Mobile Radio (“CMRS”) Messaging Service
7. CMRS Messaging Service, which replaced the CMRS One-Way Paging fee category in 1997, includes all narrowband services. 8
In the FY 2008 NPRM , we proposed maintaining the messaging service regulatory fee at $0.08 per subscriber; the rate first established for this service in FY 2002. 9
8. One commenter, AAPC, addressed this issue. 10
AAPC agrees with our proposal and observes that maintaining the fee at the existing level is a reasonable and appropriate action due to the paging industry's declining subscriber base. 11
We conclude that for FY 2008 we should continue this regulatory fee rate at $0.08 per subscriber due to the declining subscriber base in this industry. 12
2. Private Land Mobile Radio Service (“PLMRS”)
9. Commenters observe that the proposed FY 2008 fees for a PLMRS applicant are $40 per year for exclusive use PLMRS and $20 per year for shared use PLMRS. 13
Regulatory fees for this service have increased significantly over the past three years; 14
however, there are 74 percent fewer licensees in 2008 than there were in 2005. 15
PCIA also “perceives” a decline in Commission staffing devoted to PLMRS, which would correlate with the reduction in licensees. 16
Enterprise observes that there are few rulemakings associated with these licensees and the Commission has not allocated additional spectrum for these users since the mid-1980s. 17
In addition, because these licenses are site-specific, licensees often require multiple authorizations, which further increases the regulatory fee assessment. 18
Further, these Part 90 licenses are generally private internal systems used to support businesses and are not commercial communications systems with a substantial revenue stream. 19
For these reasons, commenters contend that we should not substantially increase the regulatory fees for PLMRS.
10. Instead of freezing the regulatory fees, we are going to address this matter more comprehensively in the attached FNPRM in the context of our entire regulatory fee structure. At this time; however, we are adopting the proposals in the FY 2008 NPRM for FY 2008.
3. Regulatory Fee Obligations for AM Expanded Band Broadcasters
11. Currently, AM expanded band stations in the 1610-1700 kHz range are exempt from regulatory fees, as a matter of Commission policy. In the FY 2008 NPRM , we sought comment on the most efficient way of assessing a regulatory fee on expanded band AM stations. 20
We sought comment on whether we should assess regulatory fees when the licensee has chosen to retain the expanded band station while no longer keeping the standard AM station as well as where the licensee continues to operate the standard AM station as well as the expanded band station. 21
12. Two commenters addressed the AM expanded band issue. MRB is concerned with the situation where an expanded band licensee has relinquished its expanded band license but continues to operate under special temporary authority (“STA”). 22
In such a situation, the licensee is operating the standard band and the expanded band stations, but only holds a license to the standard band station. The five-year transition period for allowing lower band AM licensees to continue to operate the AM expanded band and the lower band has not yet expired for all licensees. 23
13. There is no compelling reason to permanently exempt AM expanded band licensees from paying regulatory fees. As a general matter, it would be appropriate to treat the AM expanded band and the AM standard band similarly for regulatory fee purposes. We note, however, that currently only 20 licensees out of 54 have surrendered one of their dual licenses. The remaining 34 licensees have either conditionally surrendered one license and are operating under an STA permitting dual operation or have retained both licenses and are continuing dual operation under STAs. The Commission has before it the pending issue of whether we should permit licensees to continue to hold both standard band and expanded band licenses. 24
This issue should be resolved before we can assess regulatory fees on the expanded band AM licensees; therefore, we are not assessing regulatory fees on expanded band AM licenses at this time.
4. International Bearer Circuits
a. Background
14. In our FY 2006 NPRM , 25
we observed that VSNL Telecommunications (US) Inc. (“VSNL”) had filed a Petition for Rulemaking urging the Commission to revise its regulatory fee methodology for international bearer circuits (“IBCs”). 26
In the Petition, VSNL proposes that the Commission: (1) Reclassify non-common carrier submarine cable service as a new fee category 27
(all other carriers subject to IBC fees would be in the second category); 28
(2) apportion the IBC fee revenue requirement between the two categories, based on a comparative assessment of the regulatory services used by the entities in each category; 29
and (3) assess a flat annual fee per cable system for non-common carrier submarine cable operators. 30
15. In our FY 2008 NPRM , we granted VSNL's petition and sought comment on the methodology used to calculate regulatory fees for providers of international bearer circuits. 31
We specifically sought comment on whether the Commission should retain the current methodology used to assess these regulatory fees, or modify the methodology. 32
In addition to the comments filed to the FY 2008 NPRM , a Revised Joint Proposal for amending our IBC regulatory fee methodology was filed as an ex parte by a group of carriers on July 11, 2008. 33
16. This proposal modified the earlier joint proposal to address several concerns raised by the parties. The Revised Joint Proposal would do the following: (1) Create a new regulatory fee category for submarine cablesystems, a new SCS fee, for both common carrier and non-common carrier systems. 34
The new SCS fee would be a flat fee, per cable landing license, with a reduced fee amount for “small-capacity systems.” In addition, a consortium would be considered one cable landing license for SCS fee purposes, regardless of how many licensees were members of the consortium. (2) The SCS fee would be based originally on one-half of the current IBC category. According the Revised Joint Proposal, this would subsequently be revised downward based on the Commission's internal calculations of regulatory effort expended to regulate this industry. 35
(3) In addition, there would be a new IBC fee based on active circuits, originally based on the remaining one-half of the current fee category, for common carriers. Thus, under the Revised Joint Proposal, common carriers would pay the flat SCS per license fee and a per circuit fee and non-common carriers would pay only the flat SCS per license fee.
17. Our current rules provide that regulatory fees for international bearer circuits are to be paid by facilities-based common carriers that have active international bearer circuits in any transmission facility for the provision of service to an end user or resale carrier, which includes active circuits to themselves or to their affiliates. 36
Non-common carrier submarine cable operators are also to pay fees for any and all international bearer circuits sold on an indefeasible right of use (“IRU”) basis or leased to any customer, including themselves or their affiliates, other than an international common carrier authorized by the Commission to provide U.S. international common carrier services. 37
Regulatory fees are based on the number of active 64 kbps international bearer circuits as of December 31 of the previous year.
18. We agree with the commenters who argue that our methodology for calculating IBC regulatory fees needs to be reformed and we intend to adopt a revised methodology to be effective for FY 2009. We recognize that an in-depth review of our IBC regulatory fee methodology may be long overdue. We also note that there appears to be significant non-compliance with our current regulatory fee requirements. One issue raised by several commenters is that the regulatory fee for IBCs is far too high. We will need to address the issue of non-compliance to determine if the fee is still considered unreasonably high after non-payors are contributing as well. 38
As we mentioned earlier, if some do not pay their share of regulatory fees, the amount of fees due is increased for the remaining parties. We consider rule non-compliance a serious issue affecting all regulatees.
b. Discussion
19. Several commenters argue that non-common carrier submarine cable operators generate only a fraction of the regulatory costs common carriers generate, yet they pay the same per unit regulatory fees. 39
ATT and Verizon disagree, and argue that due to recent deregulation such as elimination of tariff filing requirements, the reduced disparities between the Commission's treatment of these services support the continued application of the same regulatory fees to all international bearer circuits. 40
ATT observes that the private carriers' argument ignores the regulatory costs incurred in connection with the Commission's international representational activities, work with foreign regulators, and other activities in support of the Commission's international regulatory goals to promote effective competition in the global marketplace. 41
ATT contends that the same fees should be applied to all types of submarine cable systems. 42
The difference in size between common carrier systems and private carrier systems, contends ATT, is even larger now than when VSNL filed its petition. 43
ATT, Verizon, and Qwest oppose any new fee structure that would impose higher fees on facilities-based common carriers, such as the proposal that non-common carriers would no longer pay fees on active circuits. 44
20. VSNL argues in its Petition that the number of active 64 kpbs circuits bears no relationship to the regulatory costs that operators generate. 45
For example, one commenter explains, if a licensee doubles its cable's capacity through a technology upgrade, the regulatory fee obligations will nearly double even though the regulatory costs to the Commission do not change. 46
Pacific contends that there is no correlation between cable system size and the Commission's regulatory effort. 47
Commenters observe that the 64 kbps increment measurement is an artifact of the original channelized telephone systems, but is not relevant to the current broadband environment where data passes unchannelized in packetized form. 48
21. The flat annual fee proposed by VSNL as an alternative to our current circuit-based fee would be derived by dividing the revenue requirement for non-common carrier submarine cable systems by the number of licensed systems. 49
The Joint Proposal suggested by Level 3 and others and the Revised Joint Proposal ex parte would assess a per-system fee on common carriers and private carriers (regardless of system size) and would also impose a per-circuit fee for active circuits common carriers own or lease. 50
The net effect of either of the flat fee proposals would be to provide significant advantages to private carriers. 51
Global Crossing observes that the Joint Proposal would result in double counting where a common carrier has capacity from an affiliated private operator. 52
Common carriers disagree with the flat fee proposal on the grounds that this would require smaller systems to pay higher fees per circuit and would adversely affect common carrier systems which are generally smaller than non-common carrier systems. 53
The Joint Commenters contend that a flat per-system fee would discourage investment in the deployment of new submarine cable systems in the Caribbean or South America. 54
Instead, the Joint Commenters argue, the Commission should adopt a two-tiered approach. 55
22. Pacific contends that the rate proposed in our FY 2008 NPRM of $1.09 is too high because the number of active circuits used in the calculation was far too low. 56
According to Pacific, international common carriers alone maintained 7.55 million active 64 kpbs circuits, so our estimate of 7.5 million for common carrier and non-common carrier combined must be revised upward. 57
Pacific concludes that if the Commission used more realistic estimates of active circuits, the per unit fee would be $.20 per circuit instead of $1.09 per circuit. 58
Several commenters observe that the prices for higher-capacity circuits have dropped more steeply than the prices for low-capacity circuits, thus the regulatory fee is an increasing percentage of the price of higher-capacity circuits. 59
The current IBC regulatory fee methodology discourages new investment to increase the capacity of existing undersea cables. 60
Verizon observes that under our current regulatory fee methodology, the IBC fee has dropped from $7.00 per circuit in 2000 to $1.09 per circuit in 2008, showing that increased demand has resulted in lower per circuit fees. 61
ATT notes that private carriers have continued to rapidly expand their U.S. underseas cable capacity. 62
23. Commenters also observe that the Commission has no way to monitor active IBCs and therefore cannot enforce compliance with regulatory fee requirements. 63
More stringent reporting requirements, generally opposed by private carriers, could eliminate the fee avoidance problem and further reduce the per circuit fee. 64
Pacific contends that the total number of active circuits is more than five times the number of payment units counted by the Commission. 65
Such significant undercounting of active circuits results in certain providers overpaying while others are underpaying. 66
Qwest observes that the Commission's reliance on section 43.82 reports of active circuits do not capture the circuits of private carriers. 67
The current practice of assessing fees based on a snapshot of active capacity on December 31 encourages operators to take capacity off line on December 31st to avoid having such capacity considered active. 68
24. We agree with the commenters who argue that our methodology for calculating IBC regulatory fees needs to be reformed. We intend to resolve this issue within 60 days of adoption of this Order. Our rules should treat all providers subject to our regulatory fees in a nondiscriminatory and competitively neutral manner. If our rules permit certain entities to avoid complying with our regulatory fee requirements, the remaining carriers must pay a higher amount to compensate for those within the fee category who avoid payment. For FY 2008, however, we are using our current methodology and the rate set forth in Attachment C. 69
Appendix A—Final Regulatory Flexibility Analysis
25. As required by the Regulatory Flexibility Act (“RFA”), 1
the Commission prepared an Initial Regulatory Flexibility Analysis (“IRFA”) of the possible significant economic impact on small entities by the policies and rules proposed in its Notice of Proposed Rulemaking. 2
Written public comments were sought on the FY 2008 fees proposal, including comments on the IRFA. This present Final Regulatory Flexibility Analysis (“FRFA”) conforms to the RFA. 3
I. Need for, and Objectives of, the Proposed Rules
26. This rulemaking proceeding is initiated to amend the Schedule of Regulatory Fees in the amount of $312,000,000, the amount that Congress has required the Commission to recover. The Commission seeks to collect the necessary amount through its revised Schedule of Regulatory Fees in the most efficient manner possible and without undue public burden.
II. Summary of Significant Issues Raised by Public Comments in Response to the IRFA
27. No parties have raised significant issues in response to the IRFA.
III. Description and Estimate of the Number of Small Entities To Which the Proposed Rules Will Apply
28. The RFA directs agencies to provide a description of, and where feasible, an estimate of the number of small entities that may be affected by the proposed rules and policies, if adopted. 4
The RFA generally defines the term “small entity” as having the same meaning as the terms “small business,” “small organization,” and “small governmental jurisdiction.” 5
In addition, the term “small business” has the same meaning as the term “small business concern” under the Small Business Act. 6
A “small business concern” is one which: (1) Is independently owned and operated; (2) is not dominant in its field of operation; and (3) satisfies any additional criteria established by the SBA. 7
29. Nationwide, there are a total of 22.4 million small businesses, according to SBA data. 8
A “small organization” is generally “any not-for-profit enterprise which is independently owned and operated and is not dominant in its field.” 9
Nationwide, as of 2002, there were approximately 1.6 million small organizations. 10
The term “small governmental jurisdiction” is defined generally as “governments of cities, towns, townships, villages, school districts, or special districts, with a population of less than fifty thousand.” 11
Census Bureau data for 2002 indicate that there were 87,525 local governmental jurisdictions in the United States. 12
We estimate that, of this total, 84,377 entities were “small governmental jurisdictions.” 13
Thus, we estimate that most governmental jurisdictions are small. Below, we further describe and estimate the number of small entities, applicants and licensees, that may be affected by our action.
30. Incumbent Local Exchange Carriers (“ILECs”). Neither the Commission nor the SBA has developed a small business size standard specifically for incumbent local exchange services. The appropriate size standard under SBA rules is for the category Wired Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 14
According to Commission data, 15
1,303 carriers have reported that they are engaged in the provision of incumbent local exchange services. Of these 1,303 carriers, an estimated 1,020 have 1,500 or fewer employees and 283 have more than 1,500 employees. Consequently, the Commission estimates that most providers of incumbent local exchange service are small businesses that may be affected by these rules.
31. Competitive Local Exchange Carriers (“CLECs”), Competitive Access Providers (“CAPs”), “Shared-Tenant Service Providers,” and “Other Local Service Providers.” Neither the Commission nor the SBA has developed a small business size standard specifically for these service providers. The appropriate size standard under SBA rules is for the category Wired Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 16
According to Commission data, 17
769 carriers have reported that they are engaged in the provision of either competitive access provider services or competitive local exchange carrier services. Of these 769 carriers, an estimated 676 have 1,500 or fewer employees and 94 have more than 1,500 employees. In addition, 12 carriers have reported that they are “Shared-Tenant Service Providers,” and all 12 are estimated to have 1,500 or fewer employees. In addition, 39 carriers have reported that they are “Other Local Service Providers.” Of the 39, an estimated 38 have 1,500 or fewer employees and one has more than 1,500 employees. Consequently, the Commission estimates that most providers of competitive local exchange service, competitive access providers, “Shared-Tenant Service Providers,” and “Other Local Service Providers” are small entities that may be affected by these rules.
32. Local Resellers. The SBA has developed a small business size standard for the category of Telecommunications Resellers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 18
According to Commission data, 19
143 carriers have reported that they are engaged in the provision of local resale services. Of these, an estimated 141 have 1,500 or fewer employees and two have more than 1,500 employees. Consequently, the Commission estimates that the majority of local resellers are small entities that may be affected by these rules.
33. Toll Resellers. The SBA has developed a small business size standard for the category of Telecommunications Resellers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 20
According to Commission data, 21
770 carriers have reported that they are engaged in the provision of toll resale services. Of these, an estimated 747 have 1,500 or fewer employees and 23 have more than 1,500 employees. Consequently, the Commission estimates that the majority of toll resellers are small entities that may be affected by these rules.
34. Payphone Service Providers (“PSPs”). Neither the Commission nor the SBA has developed a small business size standard specifically for payphone services providers. The appropriate size standard under SBA rules is for the category Wired Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 22
According to Commission data, 23
654 carriers have reported that they are engaged in the provision of payphone services. Of these, an estimated 652 have 1,500 or fewer employees and two have more than 1,500 employees. Consequently, the Commission estimates that the majority of payphone service providers are small entities that may be affected by these rules.
35. Interexchange Carriers (“IXCs”). Neither the Commission nor the SBA has developed a small business size standard specifically for providers of interexchange services. The appropriate size standard under SBA rules is for the category Wired Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 24
According to Commission data, 25
316 carriers have reported that they are engaged in the provision of interexchange service. Of these, an estimated 292 have 1,500 or fewer employees and 24 have more than 1,500 employees. Consequently, the Commission estimates that the majority of IXCs are small entities that may be affected by these rules.
36. Operator Service Providers (“OSPs”). Neither the Commission nor the SBA has developed a small business size standard specifically for operator service providers. The appropriate size standard under SBA rules is for the category Wired Telecommunications Carriers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 26
According to Commission data, 27
23 carriers have reported that they are engaged in the provision of operator services. Of these, an estimated 20 have 1,500 or fewer employees and three have more than 1,500 employees. Consequently, the Commission estimates that the majority of OSPs are small entities that may be affected by these rules.
37. Prepaid Calling Card Providers. Neither the Commission nor the SBA has developed a small business size standard specifically for prepaid calling card providers. The appropriate size standard under SBA rules is for the category Telecommunications Resellers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 28
According to Commission data, 29
89 carriers have reported that they are engaged in the provision of prepaid calling cards. Of these, an estimated 88 have 1,500 or fewer employees and one has more than 1,500 employees. Consequently, the Commission estimates that the majority of prepaid calling card providers are small entities that may be affected by these rules.
38. 800 and 800-Like Service Subscribers. 30
Neither the Commission nor the SBA has developed a small business size standard specifically for 800 and 800-like service (“toll free”) subscribers. The appropriate size standard under SBA rules is for the category Telecommunications Resellers. Under that size standard, such a business is small if it has 1,500 or fewer employees. 31
The most reliable source of information regarding the number of these service subscribers appears to be data the Commission receives from Database Service Management on the 800, 866, 877, and 888 numbers in use. 32
According to our data, at the end of December 2004, the number of 800 numbers assigned was 7,540,453; the number of 888 numbers assigned was 5,947,789; the number of 877 numbers assigned was 4,805,568; and the number of 866 numbers assigned was 5,011,291. We do not have data specifying the number of these subscribers that are independently owned and operated or have 1,500 or fewer employees, and thus are unable at this time to estimate with greater precision the number of toll free subscribers that would qualify as small businesses under the SBA size standard. Consequently, we estimate that there are 7,540,453 or fewer small entity 800 subscribers; 5,947,789 or fewer small entity 888 subscribers; 4,805,568 or fewer small entity 877 subscribers, and 5,011,291 or fewer entity 866 subscribers.
39. International Service Providers. There is no small business size standard developed specifically for providers of international service. The appropriate size standards under SBA rules are for the two broad census categories of “Satellite Telecommunications” and “Other Telecommunications.” Under both categories, such a business is small if it has $13.5 million or less in average annual receipts. 33
40. The first category of Satellite Telecommunications “comprises establishments primarily engaged in providing point-to-point telecommunications services to other establishments in the telecommunications and broadcasting industries by forwarding and receiving communications signals via a system of satellites or reselling satellite telecommunications.” 34
For this category, Census Bureau data for 2002 show that there were a total of 371 firms that operated for the entire year. 35
Of this total, 307 firms had annual receipts of under $10 million, and 26 firms had receipts of $10 million to $24,999,999. 36
Consequently, we estimate that the majority of Satellite Telecommunications firms are small entities that might be affected by our action.
41. The second category of Other Telecommunications “comprises establishments primarily engaged in (1) providing specialized telecommunications applications, such as satellite tracking, communications telemetry, and radar station operations; or (2) providing satellite terminal stations and associated facilities operationally connected with one or more terrestrial communications systems and capable of transmitting telecommunications to or receiving telecommunications from satellite systems.” 37
For this category, Census Bureau data for 2002 show that there were a total of 332 firms that operated for the entire year. 38
Of this total, 259 firms had annual receipts of under $10 million and 15 firms had annual receipts of $10 million to $24,999,999. 39
Consequently, we estimate that the majority of Other Telecommunications firms are small entities that might be affected by our action.
42. Wireless Telecommunications Carriers (except Satellite). Since 2007, the Census Bureau has placed wireless firms within this new, broad, economic census category. 40
Prior to that time, such firms were within the now-superseded categories of “Paging” and “Cellular and Other Wireless Telecommunications.” 41
Under the present and prior categories, the SBA has deemed a wireless business to be small if it has 1,500 or fewer employees. 42
Because Census Bureau data are not yet available for the new category, we will estimate small business prevalence using the prior categories and associated data. For the category of Paging, data for 2002 show that there were 807 firms that operated for the entire year. 43
Of this total, 804 firms had employment of 999 or fewer employees, and three firms had employment of 1,000 employees or more. 44
For the category of Cellular and Other Wireless Telecommunications, data for 2002 show that there were 1,397 firms that operated for the entire year. 45
Of this total, 1,378 firms had employment of 999 or fewer employees, and 19 firms had employment of 1,000 employees or more. 46
Thus, we estimate that the majority of wireless firms are small.
43. Internet Service Providers. The SBA has developed a small business size standard for Internet Service Providers. This category comprises establishments “primarily engaged in providing direct access through telecommunications networks to computer-held information compiled or published by others.” 47
Under the SBA size standard, such a business is small if it has average annual receipts of $21 million or less. 48
According to Census Bureau data for 1997, there were 2,751 firms in this category that operated for the entire year. 49
Of these, 2,659 firms had annual receipts of under $10 million, and an additional 67 firms had receipts of between $10 million and $24,999,999. 50
Thus, under this size standard, the great majority of firms can be considered small entities.
44. Television Broadcasting. The Census Bureau defines this category as follows: “This industry comprises establishments primarily engaged in broadcasting images together with sound. These establishments operate television broadcasting studios and facilities for the programming and transmission of programs to the public.” 51
The SBA has created a small business size standard for Television Broadcasting entities, which is: such firms having $13 million or less in annual receipts. 52
According to Commission staff review of the BIA Publications, Inc., Media Access Pro Television Database as of December 7, 200, about 825 (66 percent) of the 1,250 commercial television stations in the United States had revenues of $13 million or less. We note, however, that in assessing whether a business entity qualifies as small under the above definition, business (control) affiliations 53
must be included. Our estimate, therefore, likely overstates the number of small entities that might be affected by our action, because the revenue figure on which it is based does not include or aggregate revenues from affiliated companies.
45. In addition, an element of the definition of “small business” is that the entity not be dominant in its field of operation. We are unable at this time to define or quantify the criteria that would establish whether a specific television station is dominant in its field of operation. Accordingly, the estimate of small businesses to which rules may apply do not exclude any television station from the definition of a small business on this basis and are therefore over-inclusive to that extent. Also as noted, an additional element of the definition of “small business” is that the entity must be independently owned and operated. We note that it is difficult at times to assess these criteria in the context of media entities and our estimates of small businesses to which they apply may be over-inclusive to this extent.
46. There are also 2,117 low power television stations (“LPTV”). 54
Given the nature of this service, we will presume that all LPTV licensees qualify as small entities under the above SBA small business size standard.
47. Radio Broadcasting. The SBA defines a radio broadcast entity that has $6 million or less in annual receipts as a small business. 55
Business concerns included in this industry are those “primarily engaged in broadcasting aural programs by radio to the public. 56
According to Commission staff review of the BIA Publications, Inc., Master Access Radio Analyzer Database, as of May 16, 2003, about 10,427 of the 10,945 commercial radio stations in the United States have revenue of $6 million or less. We note, however, that many radio stations are affiliated with much larger corporations with much higher revenue, and that in assessing whether a business concern qualifies as small under the above definition, such business (control) affiliations 57
are included. 58
Our estimate, therefore likely overstates the number of small businesses that might be affected by the rules adopted herein.
48. Auxiliary, Special Broadcast and Other Program Distribution Services. This service involves a variety of transmitters, generally used to relay broadcast programming to the public (through translator and booster stations) or within the program distribution chain (from a remote news gathering unit back to the station). The Commission has not developed a definition of small entities applicable to broadcast auxiliary licensees. The applicable definitions of small entities are those, noted previously, under the SBA rules applicable to radio broadcasting stations and television broadcasting stations. 59
49. The Commission estimates that there are approximately 5,618 FM translators and boosters. 60
The Commission does not collect financial information on any broadcast facility, and the Department of Commerce does not collect financial information on these auxiliary broadcast facilities. We believe that most, if not all, of these auxiliary facilities could be classified as small businesses by themselves. We also recognize that most commercial translators and boosters are owned by a parent station which, in some cases, would be covered by the revenue definition of small business entity discussed above. These stations would likely have annual revenues that exceed the SBA maximum to be designated as a small business ($6.5 million for a radio station or $13.0 million for a TV station). Furthermore, they do not meet the Small Business Act's definition of a “small business concern” because they are not independently owned and operated. 61
50. Cable and Other Program Distribution. The Census Bureau defines this category as follows: “This industry comprises establishments primarily engaged as third-party distribution systems for broadcast programming. The establishments of this industry deliver visual, aural, or textual programming received from cable networks, local television stations, or radio networks to consumers via cable or direct-to-home satellite systems on a subscription or fee basis. These establishments do not generally originate programming material.” 62
The SBA has developed a small business size standard for Cable and Other Program Distribution, which is: all such firms having $13.5 million or less in annual receipts. 63
According to Census Bureau data for 2002, there were a total of 1,191 firms in this category that operated for the entire year. 64
Of this total, 1,087 firms had annual receipts of under $10 million, and 43 firms had receipts of $10 million or more but less than $25 million. 65
Thus, under this size standard, the majority of firms can be considered small.
51. Cable Companies and Systems. The Commission has also developed its own small business size standards, for the purpose of cable rate regulation. Under the Commission's rules, a “small cable company” is one serving 400,000 or fewer subscribers, nationwide. 66
Industry data indicate that, of 1,076 cable operators nationwide, all but eleven are small under this size standard. 67
In addition, under the Commission's rules, a “small system” is a cable system serving 15,000 or fewer subscribers. 68
Industry data indicate that, of 7,208 systems nationwide, 6,139 systems have less than 10,000 subscribers, and an additional 379 systems have 10,000-19,999 subscribers. 69
Thus, under this second size standard, most cable systems are small.
52. Cable System Operators. The Communications Act of 1934, as amended, also contains a size standard for small cable system operators, which is “a cable operator that, directly or through an affiliate, serves in the aggregate fewer than 1 percent of all subscribers in the United States and is not affiliated with any entity or entities whose gross annual revenues in the aggregate exceed $250,000,000.” 70
The Commission has determined that an operator serving fewer than 677,000 subscribers shall be deemed a small operator, if its annual revenues, when combined with the total annual revenues of all its affiliates, do not exceed $250 million in the aggregate. 71
Industry data indicate that, of 1,076 cable operators nationwide, all but ten are small under this size standard. 72
We note that the Commission neither requests nor collects information on whether cable system operators are affiliated with entities whose gross annual revenues exceed $250 million, 73
and therefore we are unable to estimate more accurately the number of cable system operators that would qualify as small under this size standard.
53. Open Video Services. Open Video Service (“OVS”) systems provide subscription services. 74
The SBA has created a small business size standard for Cable and Other Program Distribution. 75
This standard provides that a small entity is one with $13.5 million or less in annual receipts. The Commission has certified approximately 25 OVS operators to serve 75 areas, and some of these are currently providing service. 76
Affiliates of Residential Communications Network, Inc. (“RCN”) received approval to operate OVS systems in New York City, Boston, Washington, D.C., and other areas. RCN has sufficient revenues to assure that they do not qualify as a small business entity. Little financial information is available for the other entities that are authorized to provide OVS and are not yet operational. Given that some entities authorized to provide OVS service have not yet begun to generate revenues, the Commission concludes that up to 24 OVS operators (those remaining) might qualify as small businesses that may be affected by the rules and policies adopted herein.
54. Cable Television Relay Service. This service includes transmitters generally used to relay cable programming within cable television system distribution systems. The SBA has developed a small business size standard for Cable and Other Program Distribution, which is: all such firms having $13.5 million or less in annual receipts. 77
According to Census Bureau data for 2002, there were a total of 1,191 firms in this category that operated for the entire year. 78
Of this total, 1,087 firms had annual receipts of under $10 million, and 43 firms had receipts of $10 million or more but less than $25 million. 79
Thus, under this size standard, the majority of firms can be considered small.
55. Multichannel Video Distribution and Data Service (“MVDDS”). MVDDS is a terrestrial fixed microwave service operating in the 12.2-12.7 GHz band. The Commission adopted criteria for defining three groups of small businesses for purposes of determining their eligibility for special provisions such as bidding credits. It defined a very small business as an entity with average annual gross revenues not exceeding $3 million for the preceding three years; a small business as an entity with average annual gross revenues not exceeding $15 million for the preceding three years; and an entrepreneur as an entity with average annual gross revenues not exceeding $40 million for the preceding three years. 80
These definitions were approved by the SBA. 81
On January 27, 2004, the Commission completed an auction of 214 MVDDS licenses (Auction No. 53). In this auction, ten winning bidders won a total of 192 MVDDS licenses. 82
Eight of the ten winning bidders claimed small business status and won 144 of the licenses. The Commission also held an auction of MVDDS licenses on December 7, 2005 (Auction 63). Of the three winning bidders who won 22 licenses, two winning bidders, winning 21 of the licenses, claimed small business status. 83
56. Amateur Radio Service. These licensees are held by individuals in a noncommercial capacity; these licensees are not small entities.
57. Aviation and Marine Services. Small businesses in the aviation and marine radio services use a very high frequency (“VHF”) marine or aircraft radio and, as appropriate, an emergency position-indicating radio beacon (and/or radar) or an emergency locator transmitter. The Commission has not developed a small business size standard specifically applicable to these small businesses. For purposes of this analysis, the Commission uses the SBA small business size standard for the category “Cellular and Other Telecommunications,” which is 1,500 or fewer employees. 84
Most applicants for recreational licenses are individuals. Approximately 581,000 ship station licensees and 131,000 aircraft station licensees operate domestically and are not subject to the radio carriage requirements of any statute or treaty. For purposes of our evaluations in this analysis, we estimate that there are up to approximately 712,000 licensees that are small businesses (or individuals) under the SBA standard. In addition, between December 3, 1998, and December 14, 1998, the Commission held an auction of 42 VHF Public Coast licenses in the 157.1875-157.4500 MHz (ship transmit) and 161.775-162.0125 MHz (coast transmit) bands. For purposes of the auction, the Commission defined a “small” business as an entity that, together with controlling interests and affiliates, has average gross revenues for the preceding three years not to exceed $15 million dollars. In addition, a “very small” business is one that, together with controlling interests and affiliates, has average gross revenues for the preceding three years not to exceed $3 million dollars. 85
There are approximately 10,672 licensees in the Marine Coast Service, and the Commission estimates that almost all of them qualify as “small” businesses under the above special small business size standards.
58. Personal Radio Services. Personal radio services provide short-range, low power radio for personal communications, radio signaling, and business communications not provided for in other services. The Personal Radio Services include spectrum licensed under Part 95 of our rules. 86
These services include Citizen Band Radio Service (“CB”), General Mobile Radio Service (“GMRS”), Radio Control Radio Service (“R/C”), Family Radio Service (“FRS”), Wireless Medical Telemetry Service (“WMTS”), Medical Implant Communications Service (“MICS”), Low Power Radio Service (“LPRS”), and Multi-Use Radio Service (“MURS”). 87
There are a variety of methods used to license the spectrum in these rule parts, from licensing by rule, to conditioning operation on successful completion of a required test, to site-based licensing, to geographic area licensing. Under the RFA, the Commission is required to make a determination of which small entities are directly affected by the rules being adopted. Since all such entities are wireless, we apply the definition of cellular and other wireless telecommunications, pursuant to which a small entity is defined as employing 1,500 or fewer persons. 88
Many of the licensees in these services are individuals, and thus are not small entities. In addition, due to the mostly unlicensed and shared nature of the spectrum utilized in many of these services, the Commission lacks direct information upon which to base an estimation of the number of small entities under an SBA definition that might be directly affected by the rules adopted herein.
59. Public Safety Radio Services. Public Safety radio services include police, fire, local government, forestry conservation, highway maintenance, and emergency medical services. 89
There are a total of approximately 127,540 licensees in these services. Governmental entities 90
as well as private businesses comprise the licensees for these services. All governmental entities with populations of less than 50,000 fall within the definition of a small entity. 91
IV. Description of Projected Reporting, Recordkeeping and Other Compliance Requirements
60. With certain exceptions, the Commission's Schedule of Regulatory Fees applies to all Commission licensees and regulatees. Most licensees will be required to count the number of licenses or call signs authorized, complete and submit an FCC Form 159 Remittance Advice, and pay a regulatory fee based on the number of licenses or call signs. 92
Interstate telephone service providers must compute their annual regulatory fee based on their interstate and international end-user revenue using information they already supply to the Commission on the FCC Form 499-A, Telecommunications Reporting Worksheet, and they must complete and submit the FCC Form 159. Compliance with the fee schedule will require some licensees to tabulate the number of units ( e.g. , cellular telephones, pagers, cable TV subscribers) they have in service, and complete and submit an FCC Form 159. Licensees ordinarily will keep a list of the number of units they have in service as part of their normal business practices. No additional outside professional skills are required to complete the FCC Form 159, and it can be completed by the employees responsible for an entity's business records.
61. Each licensee must submit the FCC Form 159 to the Commission's lockbox bank after computing the number of units subject to the fee. Licensees may also file electronically to minimize the burden of submitting multiple copies of the FCC Form 159. Applicants who pay small fees in advance and provide fee information as part of their application must use FCC Form 159.
62. Licensees and regulatees are advised that failure to submit the required regulatory fee in a timely manner will subject the licensee or regulatee to a late payment penalty of 25 percent in addition to the required fee. 93
If payment is not received, new or pending applications may be dismissed, and existing authorizations may be subject to rescission. 94
Further, in accordance with the Debt Collection Improvement Act of 1996 (“DCIA”), Public Law 194-134, federal agencies may bar a person or entity from obtaining a federal loan or loan insurance guarantee if that person or entity fails to pay a delinquent debt owed to any federal agency. 95
Nonpayment of regulatory fees is a debt owed the United States pursuant to 31 U.S.C. 3711 et seq. , and the DCIA. Appropriate enforcement measures as well as administrative and judicial remedies, may be exercised by the Commission. Debts owed to the Commission may result in a person or entity being denied a federal loan or loan guarantee pending before another federal agency until such obligations are paid. 96
63. The Commission's rules currently provide for relief in exceptional circumstances. Persons or entities may request a waiver, reduction or deferment of payment of the regulatory fee. 97
However, timely submission of the required regulatory fee must accompany requests for waivers or reductions. This will avoid any late payment penalty if the request is denied. The fee will be refunded if the request is granted. In exceptional and compelling instances (where payment of the regulatory fee along with the waiver or reduction request could result in reduction of service to a community or other financial hardship to the licensee), the Commission will defer payment in response to a request filed with the appropriate supporting documentation.
V. Steps Taken To Minimize Significant Economic Impact on Small Entities, and Significant Alternatives Considered
64. The RFA requires an agency to describe any significant alternatives that it has considered in reaching its proposed approach, which may include the following four alternatives: (1) The establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; (2) the clarification, consolidation, or simplification of compliance or reporting requirements under the rule for small entities; (3) the use of performance, rather than design, standards; and (4) an exemption from coverage of the rule, or any part thereof, for small entities. 98
In the NPRM, we sought comment on alternatives that might simplify our fee procedures or otherwise benefit filers, including small entities, while remaining consistent with our statutory responsibilities in this proceeding.
65. Several categories of licensees and regulatees are exempt from payment of regulatory fees. Also, waiver procedures provide regulatees, including small entity regulatees, relief in exceptional circumstances.
66. Report to Small Business Administration: The Commission will send a copy of this Report and Order, including a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration. The Report and Order and FRFA (or summaries thereof) will also be published in the Federal Register .
67. Report to Congress: The Commission will send a copy of this FRFA, along with this Report and Order, in a report to Congress pursuant to the Congressional Review Act, 5 U.S.C. 801(a)(1)(A).
Appendix B
List of Commenters
Initial Comments
Party
Abbreviated name
American Association of Paging Carriers
AAPC.
ATT, Inc
ATT.
Global Crossing North America, Inc
Global Crossing.
Level 3 Communications, LLC
Level 3.
Multicultural Radio Broadcasting Licensee, LLC and Way Broadcasting Licensee, LLC
MRB.
Pacific Crossing Limited and PC Landing Corp
Pacific.
PCIA—The Wireless Infrastructure Association
PCIA.
Satellite Industry Association
SIA.
Tata Communications (US) Inc
Tata.
Reply Comments
Party
Abbreviated name
ATT Inc
ATT.
Brasil Telecom of America, Hibernia Atlantic U.S. LLC, Columbus Networks USA, Inc., ARCOS-1 USA, Inc., A.SUR Net, Inc
Joint Commenters.
Chisholm Trail Broadcasting Co
CTBC.
Enterprise Wireless Alliance
Enterprise.
Global Crossing North America, Inc
Global Crossing.
Independent Telephone and Telecommunications Alliance
ITTA.
Level 3 Communications, LLC
Level 3.
Pacific Crossing Limited and PC Landing Corp
Pacific.
Quest Communications International, Inc
Quest.
Reliance Globalcom Limited
Reliance.
Telstra Incorporated
Telstra.
Verizon
Verizon.
Parties Filing Initial Comments in Response to VSNL Petition, RM-11312
Party
Abbreviated name
Apollo Submarine Cable System, Inc
Apollo.
ATT, Inc
ATT.
Flag Telecom Group Limited
Flag.
Hibernia Atlantic
Hibernia.
Level 3 Communications, LLC
Level 3.
Satellite Industry Association
SIA.
Parties Filing Reply Comments to VSNL Petition, RM-11312
Apollo Submarine Cable System, Inc
Apollo.
ARCOS-1 USA, Inc., et al
Joint Commenters.
ATT, Inc
ATT.
Level 3 Communications, LLC
Level 3.
Versio n
Versio n.
Quest Communications Internacional
Qwest.
VSNL Communications (US) Inc
VSNL.
ATTACHMENT A
Sources of Payment Unit Estimates for FY 2008
In order to calculate individual service fees for FY 2008, we adjusted FY 2007 payment units for each service to more accurately reflect expected FY 2008 payment liabilities. We obtained our updated estimates through a variety of means. For example, we used Commission licensee databases, actual prior year payment records and industry and trade association projections when available. The databases we consulted include our Universal Licensing System (“ULS”), International Bureau Filing System (“IBFS”), Consolidated Database System (“CDBS”) and Cable Operations and Licensing System (“COALS”), as well as reports generated within the Commission such as the Wireline Competition Bureau's Trends in Telephone Service and the Wireless Telecommunications Bureau's Numbering Resource Utilization Forecast.
We tried to obtain verification for these estimates from multiple sources and, in all cases; we compared FY 2008 estimates with actual FY 2007 payment units to ensure that our revised estimates were reasonable. Where appropriate, we adjusted and/or rounded our final estimates to take into consideration the fact that certain variables that impact on the number of payment units cannot yet be estimated exactly. These include an unknown number of waivers and/or exemptions that may occur in FY 2008 and the fact that, in many services, the number of actual licensees or station operators fluctuates from time to time due to economic, technical, or other reasons. When we note, for example, that our estimated FY 2008 payment units are based on FY 2007 actual payment units, it does not necessarily mean that our FY 2008 projection is exactly the same number as FY 2007. We have either rounded the FY 2008 number or adjusted it slightly to account for these variables.
Fee category
Sources of payment unit estimates
Land Mobile (All), Microwave, 218-219 MHz, Marine (Ship Coast), Aviation (Aircraft Ground), GMRS, Amateur Vanity Call Signs, Domestic Public Fixed
Based on Wireless Telecommunications Bureau (“WTB”) projections of new applications and renewals taking into consideration existing Commission licensee databases. Aviation (Aircraft) and Marine (Ship) estimates have been adjusted to take into consideration the licensing of portions of these services on a voluntary basis.
CMRS Cellular/Mobile Services
Based on WTB projection reports, and FY 07 payment data.
CMRS Messaging Services
Based on WTB reports, and FY 07 payment data.
AM/FM Radio Stations
Based on CDBS data, adjusted for exemptions, and actual FY 2007 payment units.
UHF/VHF Television Stations
Based on CDBS data, adjusted for exemptions, and actual FY 2007 payment units.
AM/FM/TV Construction Permits
Based on CDBS data, adjusted for exemptions, and actual FY 2007 payment units.
LPTV, Translators and Boosters, Class A Television
Based on CDBS data, adjusted for exemptions, and actual FY 2007 payment units.
Broadcast Auxiliaries
Based on actual FY 2007 payment units.
BRS (formerly MDS/MMDS)
Based on WTB reports and actual FY 2007 payment units.
Cable Television Relay Service (“CARS”) Stations
Based on data from Media Bureau's COALS database and actual FY 2007 payment units.
Cable Television System Subscribers
Based on publicly available data sources for estimated subscriber counts and actual FY 2007 payment units.
Interstate Telecommunication Service Providers
Based on FCC Form 499-Q data for the four quarters of calendar year 2007, the Wireline Competition Bureau projected the amount of calendar year 2007 revenue that will be reported on 2008 FCC Form 499-A worksheets in April, 2008.
Earth Stations
Based on International Bureau (“IB”) licensing data and actual FY 2007 payment units.
Space Stations (GSOs NGSOs)
Based on IB data reports and actual FY 2007 payment units.
International Bearer Circuits
Based on IB reports and actual FY 2007 payment units.
International HF Broadcast Stations, International Public Fixed Radio Service
Based on IB reports and actual FY 2007 payment units.
BILLING CODE 6712-01-P
ATTACHMENT B
Calculation of FY 2008 Revenue Requirements and Pro-Rata Fees
ER26AU08.017
ER26AU08.018
ER26AU08.019
ATTACHMENT C
FY 2008 Schedule of Regulatory Fees
ER26AU08.020
ER26AU08.021
ER26AU08.022
BILLING CODE 6712-01-C
ATTACHMENT D
Factors, Measurements, and Calculations That Go Into Determining Station Signal Contours and Associated Population Coverages
AM Stations
For stations with nondirectional daytime antennas, the theoretical radiation was used at all azimuths. For stations with directional daytime antennas, specific information on each day tower, including field ratio, phasing, spacing and orientation was retrieved, as well as the theoretical pattern root-mean-square of the radiation in all directions in the horizontal plane (“RMS”) figure milliVolt per meter (mV/m) @ 1 km) for the antenna system. The standard, or modified standard if pertinent, horizontal plane radiation pattern was calculated using techniques and methods specified in section 73.150 and 73.152 of the Commission's rules. 1
Radiation values were calculated for each of 360 radials around the transmitter site. Next, estimated soil conductivity data was retrieved from a database representing the information in FCC Figure R3. 2
Using the calculated horizontal radiation values, and the retrieved soil conductivity data, the distance to the principal community (5 mV/m) contour was predicted for each of the 360 radials. The resulting distance to principal community contours were used to form a geographical polygon. Population counting was accomplished by determining which 2000 block centroids were contained in the polygon. (A block centroid is the center point of a small area containing population as computed by the U.S. Census Bureau.) The sum of the population figures for all enclosed blocks represents the total population for the predicted principal community coverage area.
FM Stations
The greater of the horizontal or vertical effective radiated power (“ERP”) (kW) and respective height above average terrain (“HAAT”) (m) combination was used. Where the antenna height above mean sea level (“HAMSL”) was available, it was used in lieu of the average HAAT figure to calculate specific HAAT figures for each of 360 radials under study. Any available directional pattern information was applied as well, to produce a radial-specific ERP figure. The HAAT and ERP figures were used in conjunction with the Field Strength (50-50) propagation curves specified in 47 CFR 73.313 of the Commission's rules to predict the distance to the principal community (70 dBu (decibel above 1 microVolt per meter) or 3.17 mV/m) contour for each of the 360 radials. 3
The resulting distance to principal community contours were used to form a geographical polygon. Population counting was accomplished by determining which 2000 block centroids were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted principal community coverage area.
ATTACHMENT E
FY 2007 Schedule of Regulatory Fees
Fee category
Annual regulatory fee
(U.S. $'s)
PLMRS (per license) (Exclusive Use) (47 CFR part 90)
35
Microwave (per license) (47 CFR part 101)
40
218-219 MHz (Formerly Interactive Video Data Service) (per license) (47 CFR part 95)
55
Marine (Ship) (per station) (47 CFR part 80)
10
Marine (Coast) (per license) (47 CFR part 80)
30
General Mobile Radio Service (per license) (47 CFR part 95)
5
Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category)
15
PLMRS (Shared Use) (per license) (47 CFR part 90)
15
Aviation (Aircraft) (per station) (47 CFR part 87)
5
Aviation (Ground) (per license) (47 CFR part 87)
10
Amateur Vanity Call Signs (per call sign) (47 CFR part 97)
1.17
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90)
.18
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90)
.08
Broadband Radio Service (formerly MMDS/ MDS) (per license sign) (47 CFR part 21)
325
Local Multipoint Distribution Service (per call sign) (47 CFR, part 101)
325
AM Radio Construction Permits
400
FM Radio Construction Permits
575
TV (47 CFR part 73) VHF Commercial:
Markets 1-10
64,300
Markets 11-25
46,350
Markets 26-50
31,075
Markets 51-100
20,000
Remaining Markets
5,125
Construction Permits
5,125
TV (47 CFR part 73) UHF Commercial:
Markets 1-10
19,650
Markets 11-25
19,450
Markets 26-50
10,800
Markets 51-100
6,300
Remaining Markets
1,750
Construction Permits
1,750
Satellite Television Stations (All Markets)
1,100
Construction Permits—Satellite Television Stations
550
Low Power TV, TV/FM Translators Boosters (47 CFR part 74)
345
Broadcast Auxiliary (47 CFR part 74)
10
CARS (47 CFR part 78)
185
Cable Television Systems (per subscriber) (47 CFR part 76)
.75
Interstate Telecommunication Service Providers (per revenue dollar)
.00266
Earth Stations (47 CFR part 25)
185
Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes Direct Broadcast Satellite Service (per operational station) (47 CFR part 100)
109,200
Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25)
116,475
International Bearer Circuits (per active 64KB circuit)
1.05
International Public Fixed (per call sign) (47 CFR part 23)
1,875
International (HF) Broadcast (47 CFR part 73)
795
FY 2007 Radio Station Regulatory Fees
Population served
AM class A
AM class B
AM class C
AM class D
FM classes A, B1 C3
FM classes B, C, C0,
C1 C2
=25,000
$625
$475
$400
$475
$575
$725
25,001-75,000
1,225
925
600
725
1,150
1,250
75,001-150,000
1,825
1,150
800
1,200
1,600
2,300
150,001-500,000
2,750
1,950
1,200
1,425
2,475
3,000
500,001-1,200,000
3,950
2,975
2,000
2,375
3,900
4,400
1,200,001-3,000,00
6,075
4,575
3,000
3,800
6,350
7,025
3,000,000
7,275
5,475
3,800
4,750
8,075
9,125
Rule Changes
List of Subjects in 47 CFR Part 1
Administrative practice and procedure.
For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR part 1 as follows:
PART 1—PRACTICE AND PROCEDURE
1. The authority citation for part 1 continues to read as follows:
Authority:
47 U.S.C. 151, 154(i), 154(j), 155, 225, 303, 309.
2. Section 1.1152 is revised to read as follows:
§ 1.1152
Exclusive use services (per license)
Fee amount 1
Address
1. Land Mobile (Above 470 MHz and 220 MHz Local, Base Station SMRS) (47 CFR, Part 90):
(a) New, Renew/Mod (FCC 601 159)
$40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic Filing) (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Filing) (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
220 MHz Nationwide:
(a) New, Renew/Mod (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic Filing) (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Filing) (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
2. Microwave (47 CFR Pt. 101) (Private):
(a) New, Renew/Mod (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic Filing) (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Filing) (FCC 601 159)
40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
3. 218-219 MHz Service:
(a) New, Renew/Mod (FCC 601 159)
60.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic Filing) (FCC 601 159)
60.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 159)
60.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Filing) (FCC 601 159)
60.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
4. Shared Use Services:
Land Mobile (Frequencies Below 470 MHz—except 220 MHz)
(a) New, Renew/Mod (FCC 601 159)
20.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic Filing) (FCC 601 159)
20.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 159)
20.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Filing) (FCC 601 159)
20.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
General Mobile Radio Service:
(a) New, Renew/Mod (FCC 605 159)
5.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic Filing) (FCC 605 159)
5.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(c) Renewal Only (FCC 605 159)
5.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Filing) (FCC 605 159)
5.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Rural Radio (Part 22):
(a) New, Additional Facility, Major Renew/Mod (Electronic Filing) (FCC 601 159)
20.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) Renewal, Minor Renew/Mod (Electronic Filing) (FCC 601 159)
20.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Marine Coast:
(a) New Renewal/Mod(FCC 601 159)
35.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 159)
35.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 159)
35.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Filing) (FCC 601 159)
35.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Aviation Ground:
(a) New, Renewal/Mod (FCC 601 159)
10.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renewal/Mod (Electronic Filing) (FCC 601 159)
10.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(c) Renewal Only (FCC 601 159)
10.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Only) (FCC 601 159)
10.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Marine Ship:
(a) New, Renewal/Mod (FCC 605 159)
10.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renewal/Mod (Electronic Filing) (FCC 605 159)
10.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(c) Renewal Only (FCC 605 159)
10.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Filing) (FCC 605 159)
10.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Aviation Aircraft:
(a) New, Renew/Mod (FCC 605 159)
5.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) New, Renew/Mod (Electronic Filing) (FCC 605 159)
5.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(c) Renewal Only (FCC 605 159)
5.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(d) Renewal Only (Electronic Filing) (FCC 605 159)
5.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
5. Amateur Vanity Call Signs:
(a) Initial or Renew (FCC 605 159)
1.23
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
(b) Initial or Renew (Electronic Filing) (FCC 605 159)
1.23
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
6. CMRS Mobile Services (per unit) (FCC 159)
2 .17
FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
7. CMRS Messaging Services (per unit) (FCC 159)
3 .08
FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
8. Broadband Radio Service (formerly MMDS and MDS)
295
FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
9. Local Multipoint Distribution Service
295
FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
1 Note that “small fees” are collected in advance for the entire license term. Therefore, the annual fee amount shown in this table that is a small fee (categories 1 through 5) must be multiplied by the 5- or 10-year license term, as appropriate, to arrive at the total amount of regulatory fees owed. It should be further noted that application fees may also apply as detailed in § 1.1102 of this chapter.
2 These are standard fees that are to be paid in accordance with § 1.1157(b) of this chapter.
3 These are standard fees that are to be paid in accordance with § 1.1157(b) of this chapter.
3. Section 1.1153 is revised to read as follows:
§ 1.1153
Fee amount
Address
Radio [AM and FM] (47 CFR, Part 73)
1. AM Class A:
=25,000 population
$650
FCC, Radio, P.O. Box 979084, St. Louis, MO 63197-9000.
25,001-75,000 population
1,325
75,001-150,000 population
1,975
150,001-500,000 population
2,975
500,001-1,200,000 population
4,300
1,200,001-3,000,000 population
6,600
3,000,000 population
7,925
2. AM Class B:
=25,000 population
500
25,001-75,000 population
1,025
75,001-150,000 population
1,275
150,001-500,000 population
2,175
500,001-1,200,000 population
3,325
1,200,001-3,000,000 population
5,100
3,000,000 population
6,125
3. AM Class C:
=25,000 population
450
25,001-75,000 population
650
75,001-150,000 population
875
150,001-500,000 population
1,325
500,001-1,200,000 population
2,200
1,200,001-3,000,000 population
3,300
3,000,000 population
4,175
4. AM Class D:
=25,000 population
525
25,001-75,000 population
775
75,001-150,000 population
1,300
150,001-500,000 population
1,550
500,001-1,200,000 population
2,575
1,200,001-3,000,000 population
4,125
3,000,000 population
5,150
5. AM Construction Permit
415
6. FM Classes A, B1 and C3:
=25,000 population
600
25,001-75,000 population
1,225
75,001-150,000 population
1,675
150,001-500,000 population
2,600
500,001-1,200,000 population
4,125
1,200,001-3,000,000 population
6,700
3,000,000 population
8,550
7. FM Classes B, C, C0, C1 and C2:
=25,000 population
775
25,001-75,000 population
1,375
75,001-150,000 population
2,550
150,001-500,000 population
3,325
500,001-1,200,000 population
4,900
1,200,001-3,000,000 population
7,850
3,000,000 population
10,200
8. FM Construction Permits
600
TV (47 CFR, Part 73) VHF Commercial
1. Markets 1 thru 10
71,050
FCC, TV Branch, P.O. Box 979084, St. Louis, MO 63197-9000.
2. Markets 11 thru 25
53,525
3. Markets 26 thru 50
33,525
4. Markets 51 thru 100
21,025
5. Remaining Markets
5,600
6. Construction Permits
5,600
UHF Commercial
1. Markets 1 thru 10
21,225
FCC, UHF Commercial, P.O. Box 979084, St. Louis, MO 63197-9000.
2. Markets 11 thru 25
19,475
3. Markets 26 thru 50
11,900
4. Markets 51 thru 100
6,800
5. Remaining Markets
1,800
6. Construction Permits
1,800
Satellite UHF/VHF Commercial
1. All Markets
1,175
FCC Satellite TV, P.O. Box 979084, St. Louis, MO 63197-9000.
2. Construction Permits
595
Low Power TV, Class A TV, TV/FM Translator, TV/FM Booster (47 CFR Part 74)
365
FCC, Low Power, P.O. Box 979084, St. Louis, MO 63197-9000.
Broadcast Auxiliary
10
FCC, Auxiliary, P.O. Box 979084, St. Louis, MO 63197-9000.
4. Section 1.1154 is revised to read as follows:
§ 1.1154
Fee amount
Address
Radio Facilities:
1. Microwave (Domestic Public Fixed) (Electronic Filing) (FCC Form 601 159)
$40.00
FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
Carriers:
1. Interstate Telephone Service Providers (per interstate and international end-user revenues (see FCC Form 499-A)
.00314
FCC, Carriers, P.O. Box 979084, St. Louis, MO 63197-9000.
5. Section 1.1155 is revised to read as follows:
§ 1.1155
Fee amount
Address
1. Cable Television Relay Service
$205
FCC, Cable, P.O. Box 979084, St. Louis, MO 63197-9000.
2. Cable TV System (per subscriber)
.80
6. Section 1.1156 is revised to read as follows:
§ 1.1156
Fee amount
Address
Radio Facilities:
1. International (HF) Broadcast
$860
FCC, International, P.O. Box 979084, St. Louis, MO 63197-9000.
2. International Public Fixed
2,025
FCC, International, P.O. Box 979084, St. Louis, MO 63197-9000.
Space Stations (Geostationary Orbit)
119,300
FCC, Space Stations, P.O. Box 979084, St. Louis, MO 63197-9000.
Space Stations (Non-Geostationary Orbit)
125,750
FCC, Space Stations, P.O. Box 979084, St. Louis, MO 63197-9000.
Earth Stations:
Transmit/Receive Transmit Only (per authorization or registration)
195
FCC, Earth Station, P.O. Box 979084, St. Louis, MO 63197-9000.
Carriers:
International Bearer Circuits (per active 64KB circuit or equivalent)
.93
FCC, International, P.O. Box 979084, St. Louis, MO 63197-9000.
Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. E8-19899 Filed 8-25-08; 8:45 am]
BILLING CODE 6712-01-P