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[Federal Register: July 12, 2002 (Volume 67, Number 134)]
[Rules and Regulations]
[Page 46297-46325]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12jy02-15]
[[Page 46297]]
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Part III
Federal Communications Commission
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47 CFR Part 1
Assessment and Collection of Regulatory Fees For Fiscal Year 2002;
Final Rule
[[Page 46298]]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 02-64; FCC 02-205]
Assessment and Collection of Regulatory Fees For Fiscal Year 2002
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: The Commission will revise its Schedule of Regulatory Fees in
order to recover the amount of regulatory fees that Congress has
required it to collect for fiscal year 2002. Section 9 of the
Communications Act of 1934, as amended, provides for the annual
assessment and collection of regulatory fees for annual ``Mandatory
Adjustments'' and ``Permitted Amendments'' to the Schedule of
Regulatory Fees.
DATES: September 9, 2002.
FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing
Director at (202) 418-0444.
SUPPLEMENTARY INFORMATION:
Adopted: July 3, 2002.
Released: July 5, 2002.
By the Commission: Commissioner Copps concurring and issuing a
statement.
Table of Contents
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Paragraph
Topic Nos.
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I. Introduction............................................ 1
II. Background............................................. 4
III. Discussion:
A. Development of FY 2002 Fees
i. Adjustment of Payment Units..................... 9
ii. Calculation of Revenue Requirements............ 10
iii. Recalculation of Fees and Procedural Changes.. 11
B. NPRM Issues and Comments Received................... 14
i. Amateur Vanity Call Signs....................... 16
ii. Commercial Mobile Radio Service Messaging...... 17
iii. Interstate Telecommunications Service 19
Providers.........................................
C. Procedures for Payment of Regulatory Fees........... 21
i. Annual Payments of Standard Fees................ 22
ii. Installment Payments for Large Fees............ 23
iii. Advance Payments of Small Fees................ 24
iv. De Minimis Fee Payment Liability............... 25
v. Standard Fee Calculations and Payments.......... 26
vi. Mandatory Use of FCC Registration Number (FRN). 29
vii. Population Count of AM and FM Radio Stations.. 30
viii. Technical Changes............................ 32
D. Schedule of Regulatory Fees......................... 35
E. Enforcement......................................... 36
IV. Procedural Matters:
A. Ordering Clause..................................... 37
B. Authority and Further Information................... 38
Attachment A--Final Regulatory Flexibility Analysis
Attachment B--Sources of Payment Unit Estimates for FY 2002
Attachment C--Calculation of Revenue Requirements and Pro-
Rata Fees
Attachment D--FY 2002 Schedule of Regulatory Fees
Attachment E--Comparison Between FY 2001, FY 2002 Proposed
and FY 2002 Final Regulatory Fees
Attachment F--Detailed Guidance on Who Must Pay Regulatory
Fees
Attachment G--Description of FCC Activities
Attachment H--Factors, Measurements, and Calculations that
Determine Station Signal Contours and Population Coverages
Attachment I--Parties Filing Comments and Reply Comments
Attachment J--AM and FM Radio Regulatory Fees
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I. Introduction
1. By this Report and Order, the Commission concludes a proceeding
to revise its Schedule of Regulatory Fees to collect the amount of
regulatory fees that Congress, pursuant to section 9(a) of the
Communications Act, as amended, has required us to collect for Fiscal
Year (FY) 2002.\1\
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\1\ 47 U.S.C. 159(a).
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2. We must collect $218,757,000 through regulatory fees to recover
the costs of our competition, enforcement, spectrum management, and
consumer information activities for FY 2002.\2\ See Attachment G for a
description of these activities. This amount is $18,611,000 or
approximately 9.3% more than the amount designated for recovery through
regulatory fees for FY 2001.\3\ We are revising our fees in order to
collect this amount as illustrated in a new fee schedule in Attachment
D.
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\2\ Public Law 107-77 and 47 U.S.C. 159(a)(2).
\3\ Assessment and Collection of Regulatory Fees for Fiscal Year
2001, 66 FR 36177 (2001).
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3. In revising our fees, we adjusted the payment units and revenue
requirement for each service subject to a fee, consistent with section
159(b)(2). The Schedule of Regulatory Fees is set forth in Secs. 1.1152
through 1.1156 of the Commission's rules.\4\
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\4\ 47 CFR 1.1152 through 1.1156.
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II. Background
4. Section 9(a) of the Communications Act of 1934, as amended,
authorizes the Commission to assess and collect annual regulatory fees
to recover its regulatory costs.\5\ In our FY 1994 Fee Order,\6\ we
adopted the Schedule of Regulatory Fees that Congress initially
[[Page 46299]]
established, and prescribed rules to govern payment of the fees.\7\
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\5\ 47 U.S.C. 159(a).
\6\ 59 FR 30984 (1994).
\7\ 47 U.S.C. 159(b), (f)(1).
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5. For fiscal years after FY 1994, we modified the fee schedule to
increase the fees in accordance with the amounts Congress required us
to collect in each succeeding fiscal year. Section 9(b)(2), entitled
``Mandatory Adjustments,'' requires that we revise the Schedule of
Regulatory Fees to reflect the amount that Congress annually requires
us to recover through regulatory fees.\8\ Section 9(b)(3), entitled
``Permitted Amendments,'' requires that we determine annually whether
additional adjustments to the fees are warranted, taking into account
factors that are in the public interest, as well as issues that are
reasonably related to the payer of the fee. These amendments permit us
to ``add, delete, or reclassify services in the Schedule to reflect
additions, deletions or changes in the nature of its services * * *''
\9\
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\8\ 47 U.S.C. 159(b)(2).
\9\ 47 U.S.C. 159(b)(3).
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6. Section 9(i) requires that we develop accounting systems
necessary to adjust our fees pursuant to changes in the cost of
regulating various services that are subject to a fee, and for other
purposes.\10\ The Commission is planning a new improved cost accounting
system, which we anticipate to be operational after sufficient testing.
For FY 1997, we relied for the first time on cost accounting data to
identify our regulatory costs and to develop our FY 1997 fees based
upon these costs. Also, in FY 1997, we found that some fee categories
received disproportionately high cost allocations. We adjusted for
these high cost allocations by redistributing the costs, and maintained
a 25% limit on the extent in which service fee categories could be
increased. We believed that this 25% limit would enable cost-based
service fees to be implemented more gradually over time. We thought
that this methodology, which we continued to use for FY 1998, would
enable us to develop a regulatory fee schedule that more closely
reflected our cost of regulation. Over time, as the cost of regulation
increased or decreased, this methodology would enable us to revise the
fee schedule to reflect those services whose regulatory costs had
changed.
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\10\ 47 U.S.C. 159(i).
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7. However, we found that developing a regulatory fee structure
based on available but insufficiently detailed cost information
sometimes did not permit us to recover the amount that Congress
required us to collect. In some instances, the large increases in the
cost of regulation could not be adjusted to an acceptable and balanced
level. We concluded that it would be best to discontinue attempts to
base the schedule on our available cost data. Instead, we chose to
adjust the FY 1999 through FY 2001 fees through ``Mandatory
Adjustments'' only. We have found no reason to deviate from this policy
for FY 2002. However, we are applying the ``Mandatory Adjustments'' as
we did in FY 2001 to better incorporate changes in payment units.
Finally, section 9(b)(4)(B) requires us to notify Congress, if there
are any ``Permitted Amendments,'' 90 days before those amendments go
into effect.\11\ However, since we are making no ``Permitted
Amendments,'' this section does not apply for FY 2002.
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\11\ 47 U.S.C. 159(b)(4)(B).
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8. We also amended the rules governing our regulatory fee program
based upon our prior experience in administering the program.\12\ These
changes are discussed in more detail in paragraphs 29-34.
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\12\ 47 CFR 1.1151 et seq.
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III. Discussion
A. Development of FY 2002 Fees
i. Adjustment of Payment Units
9. In calculating FY 2002 regulatory fees for each service, we
adjusted the estimated payment units for each service to reflect
substantial changes in payment units for many services since adopting
our FY 2001 fees. We obtained our estimated payment units through a
variety of means, including our licensee data bases, actual prior year
payment records, and industry and trade group projections. Whenever
possible, we verified these estimates from multiple sources to ensure
accuracy of these estimates. Attachment B summarizes how revised
payment units were determined for each fee category.\13\
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\13\ It is important to note also that the required increase in
regulatory fee payments of approximately 9.3 percent in FY 2002 will
not fall equally on all payers because payment units have changed in
several services. When the number of payment units in a service
increases from one year to another, fees do not have to rise as much
as they would if payment units had decreased or remained stable.
Declining payment units have the opposite effect on fees.
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ii. Calculation of Revenue Requirements
10. We compared the sum of all estimated revenue requirements for
FY 2001 to the amount that we must collect for FY 2002, which is
approximately 9.3% more total revenue than in FY 2001. We increased
each FY 2001 fee revenue category estimate by 9.3% to provide a total
FY 2002 revenue estimate of $218,757,000. Attachment C provides
detailed calculations showing how we determined the revised revenue
amounts to be raised for each service.
iii. Recalculation of Fees and Procedural Changes
11. Once we determined the revenue requirement for each service and
class of licensee, we divided the revenue requirement by the number of
estimated payment units (and by the license term for ``small'' fees) to
obtain actual fee amounts for each fee category. These calculated fee
amounts were then rounded in accordance with section 9(b)(2) of the
Act. See Attachment C.
12. Once we established our tentative FY 2002 fees, we evaluated
proposals made by Commission staff concerning ``Permitted Amendments''
to the Fee Schedule and to our collection procedures. We examined the
results of our calculations to determine if further adjustments of the
fees and/or changes to payment procedures were warranted based upon the
public interest and other criteria established in 47 U.S.C. 159(b)(3).
Unless otherwise noted herein, nothing else in this proceeding is
intended to change any policies or procedures established or reaffirmed
in the FY 2001 Order (66 FR 36177).
13. Finally, we have incorporated, as Attachment F, Guidance
containing detailed descriptions of each fee category, information on
the individual or entity responsible for paying a particular fee and
other important information designed to assist potential fee payers in
determining the extent of their fee liability, if any, for FY 2002.
B. NPRM Issues and Comments Received
14. The Commission issued a Notice of Proposed Rulemaking (NPRM),
adopted on March 22, 2002, setting forth a proposed fee schedule for FY
2002 based on the methodology used in FY 2001. The NPRM also requested
comment on certain administrative issues, including proposals related
to AM and FM population calculation errors, payment of fees using
credit cards, the imposition of a processing fee for delinquent fee
payments, and refunds involving less than $10.
15. In response to the NPRM, we received comments from AT&T;
Verizon; the American Association of Paging Carriers; the Allied
Personal Communications Industries Association of California; Blooston,
Mordkofsky, Dickens, Duffy & Prendergast; and from two amateur radio
licensees. Replies were filed by Verizon and American Mobile
Telecommunications Association. Arch Wireless, along with the American
Association of Paging
[[Page 46300]]
Carriers and the Law Firm of Blooston, Mordkofsky, Dickens, Duffy &
Prendergast, also filed a Notice of Ex Parte Presentation. None of the
parties commented on the NPRM's administrative proposals. The comments
of AT&T and Verizon relate to whether the Commission should use more
current data or a different methodology in setting the Interstate
Telecommunications Service Providers (ITSP) regulatory fee. The
comments of the CMRS messaging industry object to the increase proposed
to the per unit fee for CMRS messaging providers. Amateur radio
commenters object to paying regulatory fees when renewing their
authorizations. This Report and Order discusses each of these issues
and finds no basis for changing the approach proposed in the NPRM.
i. Amateur Vanity Call Signs
16. Amateur licensees Steven Karty and William J. Hanrahan support
the payment of a regulatory fee for the initial administrative cost
actually incurred by the Commission, but question why the amateur
vanity call sign fee must be paid upon renewal. William J. Hanrahan
also suggests that there be no cost distinction between vanity call
signs and systematically assigned call signs. Section 9 of the
Communications Act, as amended, provides for the recovery of the
Commission's costs associated with its enforcement, policy and
rulemaking, user information, and international activities.\14\ Every
day, Commission staff are engaged in activities involving amateur
vanity call signs, such as protecting the assignment of vanity call
signs, investigating complaints on the improper or illegal usage of
call signs, requests for call signs that are already assigned to
someone else, and all related research that is necessary to insure the
proper assignment of call signs. Therefore, because the Commission
continues to incur costs on vanity call signs even after the issuance
or renewal of amateur vanity call signs, we believe that it is
appropriate to assess such a regulatory fee upon the renewal of amateur
vanity call sign licenses.
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\14\ 47 U.S.C. 159(a)(1).
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ii. Commercial Mobile Radio Service (CMRS) Messaging
17. Allied Personal Communications Industries Association of
California (``Allied'') argues that the CMRS Messaging fee of $0.08 per
unit represents a 60% increase from last year's per unit fee of $0.05,
rather than an increase of 9.3% that Congress requires us to
collect.\15\ Allied further contends that the methodology for
calculating the current fee schedule for CMRS messaging be changed from
a per unit basis to an interstate revenue basis.\16\ The American
Association of Paging Carriers (``AAPC'') and the law firm of Blooston,
Mordkofsky, Dickens, Duffy & Prendergast (``BMDDP'') also raise the
same issue stating that the per unit fee for CMRS Messaging has
increased 60%, far beyond the 9.3% increase intended by Congress.\17\
Furthermore, AAPC also discusses the impact of using an estimate of
23.6 million units as the basis for calculating CMRS Messaging fees,
and whether a higher estimate (e.g. 38.9 million or even 45.3 million
units) should not be used.\18\ The law firm of Blooston, Mordkofsky,
Dickens, Duffy & Prendergast also argues that an $0.08 per unit
regulatory fee would be disastrous to an already fragile paging
industry whose businesses are generally defined as ``small'' or ``very
small'' businesses.\19\ BMDDP also argues that because these businesses
are small and community oriented, there is a great deal of customer
loyalty to these local businesses, which is likely to change with
declining revenues and higher regulatory fees.\20\ And finally, BMDDP
argues that historically speaking, the Commission has followed a policy
of gradualism in protecting fledging telecommunications industries and
small businesses, particularly if this policy will further the public
interest.\21\ In an oral Ex Parte presentation, Arch Wireless, Inc.
(``Arch''), along with the American Association of Paging Carriers and
the law firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast,
suggested that the Commission revise its methodology and use revenues,
rather than estimated CMRS messaging units, as the basis for
configuring regulatory fees in the future.\22\
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\15\ Comments submitted by Allied Personal Communications
Industries Association of California on April 23, 2002, page 4.
\16\ Ibid.
\17\ Comments submitted on April 23, 2002 by the American
Association of Paging Carriers (page 2), and the law firm of
Blooston, Mordkofsky, Dickens, Duffy & Prendergast (page 3).
\18\ American Association of Paging Carriers (pages 2, 4-6).
\19\ Blooston, Mordkofsky, Dickens, Duffy & Prendergast, pages
1-2.
\20\ Ibid., pages 2-4.
\21\ Ibid., pages 5-6, 8-9.
\22\ Notice of Oral Ex Parte Presentation, submitted on May 17,
2002.
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18. The 9.3% increase has been applied to the total revenue
required to be collected from the CMRS Messaging industry, not to the
per unit fee assessed in FY 2001. The FY 2002 unit fee results from
dividing this new revenue requirement by the estimated number of units
which we believe will be reported and a fee paid for FY 2002. While
using a higher unit estimate of ``38.9 or even 45.3 million units''
would significantly lower the per unit fee, the commenters have not
demonstrated that those estimates accurately represent the number of
paying units currently in use by the messaging industry. Furthermore,
the commenters have provided no basis to substantiate the claim that a
$0.03 annual increase per unit will be damaging to the industry. With
respect to the suggestion that revenues be used as the basis for
determining regulatory fees for CMRS messaging, this suggestion will
require further consideration, particularly in determining whether a
comprehensive source of revenue information is available for all
entities engaged in providing CMRS messaging services.
iii. Interstate Telecommunications Service Providers (ITSP)
19. AT&T Corporation (``AT&T'') asserts that the current regulatory
fees mechanism does not conform to the methodology used for assessment
and collection of universal service support and requests the
Commission, to be consistent, reduce the time lag between the accrual
of revenues and the payment of regulatory fees.\23\ AT&T argues that
this time lag between assessment and collection unfairly disadvantages
certain carriers and reduces competition.\24\ In revising its schedule
of fees, the Commission follows a rigid time schedule that incorporates
such steps as collecting data, reviewing the information, seeking
public comments and reply comments, submitting a 60-day or 90-day
notice to OMB and Congress, respectively, as well as to allow
sufficient time for review and adoption of the Report and Order. Hence,
AT&T's suggestion to use more current data from FCC Form 499-Q
(submitted by carriers on August 1, 2002) is simply impractical given
our rigid time schedule.\25\ In addition, AT&T also notes that our fee
calculations are based on 2001 revenue data, and since FY 2002
regulatory fees are not paid until September 2002, a time lag exists
that could alter the regulatory rate for ITSP fees, which can be
rectified by the use of FCC Form 499-Q (data from second quarter 2002).
Carriers have not yet filed second
[[Page 46301]]
quarter 2002 revenues in Form 499-Q filings, and in any case, Form 499-
Q lacks sufficient detail to permit calculation of the regulatory fee
base. However, for purposes of calculating ITSP regulatory fees, what
is most important is the submission of a comprehensive data form that
meets our rigid time schedule, and FCC Form 499-A serves this purpose
well. Although FCC Form 499-Q may reflect more current revenues data,
we believe that it is not submitted with sufficient detail to permit
carriers to complete Form 159-W, which is used as the basis for
calculating and paying the Interstate Telecommunications Service
Providers (ITSP) fee obligation.
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\23\ Comments submitted by AT&T on April 23, 2002, page 4.
\24\ Ibid, page 5.
\25\ Ibid, page 7.
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20. AT&T also suggests that the Commission simultaneously modify
its regulatory fee collections methodology from a historical revenue-
based assessment to a connection and capacity-based mechanism if and
when the Commission modifies its universal service contribution
methodology.\26\ In the Universal Service Contribution Methodology
Further Notice, we specifically sought comment on the appropriate basis
for calculating regulatory fees if the Commission were to adopt a
connection and capacity-based universal service contribution
methodology.\27\ Until we resolve the issue of how contributions to
universal service should be calculated, contemplating any revision to
our regulatory fee methodology would be premature.
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\26\ But see Verizon Reply Comments submitted on May 3, 2002.
\27\ See Federal-State Joint Board on Universal Service, 1998
Biennial Regulatory Review--Streamlined Contributor Reporting
Requirements Associated with Administration of Telecommunications
Relay Service, North American Numbering Plan, Local Number
Portability, and Universal Service Support Mechanisms,
Telecommunications Services for Individuals with Hearing and Speech
Disabilities, and the Americans with Disabilities Act of 1990,
Administration of the North American Plan and North American
Numbering Plan Cost Recovery Contribution Factor and Fund Size,
Number Resource Optimization, Telephone Number Portability, Trust-
in-Billing and Billing Format, CC Docket Nos. 96-45, 98-171, 90-571,
92-237, 99-200, 95-116, 98-170, Further Notice of Proposed
Rulemaking and Order, paragraph 82 (released February 26, 2002)
(Universal Service Contribution Methodology Further Notice).
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C. Procedures for Payment of Regulatory Fees
21. We are retaining the procedures that we have established for
the payment of regulatory fees. See paragraphs 22-24. Section 9(f)
requires that we permit ``payment by installments in the case of fees
in large amounts, and in the case of small amounts, shall require the
payment of the fee in advance for a number of years not to exceed the
term of the license held by the payer.'' See 47 U.S.C. 159(f)(1).
Consistent with section 9(f), we are again establishing three
categories of fee payments, based upon the category of service for
which the fee payment is due and the amount of the fee to be paid. The
fee categories are: (1) ``Standard'' fees, (2) ``large'' fees, and (3)
``small'' fees.
i. Annual Payments of Standard Fees
22. As we have in the past, we are treating regulatory fee payments
by certain licensees as ``standard fees'' which are those regulatory
fees that are payable in full on an annual basis. Payers of standard
fees are not required to make advance payments for their full license
term and are not eligible for installment payments. All standard fees
are payable in full on the date we establish for payment of fees in
their regulatory fee category. The payment dates for each regulatory
fee category will begin September 10, 2002 and end at close of business
September 25, 2002.
ii. Installment Payments for Large Fees
23. While time constraints will again preclude an opportunity for
installment payments, regulatees in any category of service with a
liability of $12,000 or more may choose to pay these fees on the last
date that fee payments may be submitted. The date for installment
payments will end at close of business on September 25, 2002.
iii. Advance Payments of Small Fees
24. As we have in the past, we are treating regulatory fee payments
by certain licensees as ``small'' fees subject to advance payment
consistent with the requirements of section 9(f)(2). Advance payments
will be required from licensees of those services that we decided would
be subject to advance payments in our FY 1994 Report and Order, and to
those additional payers noted.\28\ Payers of advance fees will submit
the entire fee due for the full term of their licenses when filing
their initial, renewal, or reinstatement application. Regulatees
subject to a payment of small fees shall pay the amount due for the
current fiscal year multiplied by the number of years in the term of
their requested license. In the event that the required fee is adjusted
following their payment of the fee, the payer would not be subject to
the payment of a new fee until filing an application for renewal or
reinstatement of the license. Thus, payment for the full license term
would be made based upon the regulatory fee applicable at the time the
application is filed. The starting date for payment of small fees
established in this proceeding is September 10, 2002.
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\28\ Applicants for new, renewal and reinstatement licenses in
the following services will be required to pay their regulatory fees
in advance: Land Mobile Services, Microwave Services, Marine (Ship)
Service, Marine (Coast) Service, Private Land Mobile (Other)
Services, Aviation (Aircraft) Service, Aviation (Ground) Service,
General Mobile Radio Service (GMRS), 218-219 MHz Service (if any
applications should be filed), Rural Radio Service, and Amateur
Vanity Call Signs.
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iv. De Minimis Fee Payment Liability
25. As we have in the past, regulatees whose total regulatory fee
liability, including all categories of fees for which payment is due by
an entity, amounts to less than $10 will be exempted from fee payment
in FY 2002.
v. Standard Fee Calculations and Payment Dates
26. For licensees and permittees of Media (formerly Mass Media)
services, we propose that the responsibility for payment of regulatory
fees rests with the holder of the permit or license on October 1, 2001.
However, in instances where a Media service license or authorization is
transferred or assigned after October 1, 2001, and arrangements to pay
have not been made between the two parties, the fee is still due and
must be paid by the licensee or holder of the authorization on the date
that the fee payment is due. For licensees, permittees and holders of
other authorizations in the Wireline Competition Bureau (formerly
Common Carrier) and Cable Services (presently within the Media Bureau)
whose fees are not based on a subscriber, unit, or circuit count, we
are proposing that fees be paid for any authorization issued on or
before October 1, 2001. A pending change in the status of a license or
permit that is not granted as of that date is not taken into account,
and the fee is based on the authorization that existed on October 1,
2001.
27. For regulatees whose fees are based upon a subscriber, unit or
circuit count, such as cable subscriber services and Commercial Mobile
Radio Service (CMRS) cellular, mobile, and messaging services, the
number of a regulatees' subscribers, units or circuits on December 31,
2001, will be used to calculate the fee payment.\29\ A pending
[[Page 46302]]
change in the status of a license or permit that is not granted as of
that date is not effective, and the fee is based on the classification
that existed on that date. Where a license or authorization is
transferred or assigned after December 31, 2001, the fee shall be paid
by the licensee or holder of the authorization on the date that the
payment is due. For facilities-based common carriers with active
international bearer circuits, the fee is based on the circuit count as
of December 31, 2001.
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\29\ Cable system operators are to compute their subscribers as
follows: Number of single family dwellings + number of individual
households in multiple dwelling unit (apartments, condominiums,
mobile home parks, etc.) paying at the basic subscriber rate + bulk
rate customers + courtesy and free service. Note: Bulk-Rate
Customers = Total annual bulk-rate charge divided by basic annual
subscription rate for individual households. Cable system operators
may base their count on ``a typical day in the last full week'' of
December 2001, rather than on a count as of December 31, 2001.
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28. Because of the time constraint in paying regulatory fees, the
Commission highly recommends that entities submitting more than twenty-
five (25) Form 159-C's use the electronic fee filer program when
sending in their regulatory fee payment. This will not only reduce
errors that can result, but also reduce the amount of paperwork that is
received by the Commission. Furthermore, as was the practice last year,
the Commission will, for the convenience of payers, accept fee payments
made in advance of the normal formal window for the payment of
regulatory fees.
vi. Mandatory Use of FCC Registration Number (FRN)
29. Pursuant to MD Docket No. 00-205 adopted on August 24, 2001
effective December 3, 2001 regulatory fee filers are required to
provide FRN's with regulatory fee payments.\30\ This matter was first
noted in the FY 2001 Regulatory Fee NPRM, to which the Commission
received no comments. Regulatory fee payments received without an FRN
will be retained by the Agency. The FCC will send the filer a letter
notifying them that the payment was received without an FRN and that
proper credit for the payment will not occur until the FRN is provided.
The filer may receive dunning notices from the FCC until the
appropriate FRN is provided for the payment.
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\30\ 66 FR 47890 (September 14, 2001).
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vii. Population Count of AM and FM Radio Stations
30. The population count for radio stations is not derived merely
by a census count of the surrounding community, but from a formula that
incorporates various indices such as power, tower size, class size, and
other technical attributes. The methodology for calculating the
population count is listed in Attachment H of this Report and Order.
Because a number of components are used to calculate the population
city grade of each station, it is possible that in some instances the
calculation of the population count and related fee may inadvertently
be incorrectly stated in the Media Regulatory Fees Public Notice that
identifies the radio station call signs and their respective fees.
Therefore, if a licensee has paid the fee listed in the Media
Regulatory Fees Public Notice and it is later determined that the
population calculation for the station is incorrect, and a letter
verifying the correct population count is provided from the supplier of
the population calculation, the Commission will refund the fee amount
overpaid. Similarly, if it is determined that the population
calculation and related fee for the station has been understated, and
the Commission obtains verification of the correct population
calculation from the supplier of the population calculation, the
Commission will bill the licensee for the difference in fees that
should have been paid.
31. In addition, we will make corrections for such population
calculation errors, whether by refunding or billing for corrected fee
amounts, only for three (3) fiscal years after the error appears in the
Media Regulatory Fees Public Notice. For example, in the case of a
population calculation error resulting in an overstated fee amount, if
the Media Regulatory Fees Public Notice for FY 2002 contains a
population calculation and related fee error and the licensee provides
the appropriate verification of the error before September 30, 2005,
the Commission will refund the amount overpaid. Similarly, in a case
where a population calculation error results in an understated fee
amount, if the Fiscal Year 2002 population calculation error is
discovered and verified before September 30, 2005, the Commission will
bill the licensee for the difference between the correct fee and the
fee listed in the Fiscal Year 2002 Media Regulatory Fees Public Notice.
We believe that three years provides a reasonable time for a licensee
or the Commission to discover and seek to rectify population
calculation errors, and that limiting the time for correction of fees
will protect both licensees and the Government from being subject to
indefinite potential obligations to make corrective payments. We
proposed this issue of addressing incorrect population counts for AM
and FM radio stations in the Notice of Proposed Rulemaking, but we did
not receive any comments or reply comments relating to this particular
issue.
viii. Technical Changes
32. Regulatory fee payments may be made by Visa, MasterCard,
American Express, and Discover credit cards. When paying by credit
card, regulatees have two options: (1) Regulatees may submit their
payment by using the Commission's FeeFiler (an electronic payment
system), or (2) Regulatees may provide the requested credit card
information on the FCC Form 159, (Remittance Advice), and mail it to
the address described in the Public Notice. Refunds of regulatory fees
paid by credit cards are made by check payable to the regulatory fee
payor. No refunds are issued to the card processor.
33. It has come to our attention that we did not make corresponding
revisions to certain descriptive portions of sections 1.1152 and 1.1157
of our rules when the regulatory fees for wireless radio services were
amended to include standard annual regulatory fees based on payment
units for Commercial Mobile Radio Service (CMRS) Mobile and CMRS
Messaging. The descriptive portions of sections 1.1152 and 1.1157 of
our rules are changed to reflect that it is no longer the case that all
regulatory fee payments for wireless radio services are paid in advance
when applications are filed.
34. The Commission incurs transaction costs when processing
refunds. The Commission has determined that, in some instances, the
transaction costs outweigh the dollar amount of the refund. Therefore,
for purposes of more efficient money management, payments in excess of
an application or regulatory fee will be refunded only if the
overpayment is $10 or more.
D. Schedule of Regulatory Fees
35. The Commission's Schedule of Regulatory Fees for FY 2002 is
contained in Attachment D of this Report and Order.
E. Enforcement
36. As required in 47 U.S.C. 159(c), an additional charge shall be
assessed as a penalty for late payment of any regulatory fee. A late
payment penalty of 25 percent of the amount of the required regulatory
fee will be assessed on the first day following the deadline date for
filing of these fees. Failure to pay regulatory fees and/or any late
penalty will subject regulatees to sanctions, including the provisions
set forth in the Debt Collection Improvement Act of 1996 (``DCIA'').
The Commission assesses administrative processing charges on delinquent
debts to recover additional costs incurred in
[[Page 46303]]
processing and handling the related debt pursuant to the DCIA and
section 1.1940(d) of the Commission's Rules. These administrative
processing charges will be assessed on any delinquent regulatory fee,
in addition to the 25 percent late charge penalty. Partial or
underpayment of regulatory fees are treated in the following manner.
The licensee will be given credit for the amount paid, but if it is
later determined that the fee paid is incorrect or was submitted after
the deadline date, the 25 percent late charge penalty will be assessed
on the portion that is submitted after the filing window. See 47 CFR
1.1164. Failure to pay regulatory fees can result in the initiation of
a proceeding to revoke any and all authorizations held by the
delinquent payor. See 47 CFR 1.1164.
IV. Procedural Matters
A. Ordering Clause
37. Accordingly, it is ordered that the rule changes specified
herein be adopted. It is further ordered that the rule changes made
herein will become effective September 9, 2002, which is no less that
30 days from the date of publication in the Federal Register. A Final
Regulatory Flexibility Analysis (FRFA) has been performed and is found
in Attachment A, and it is ordered that the Federal Communications
Commission's Consumer and Governmental Affairs Bureau, Reference
Information Center, send this to Small Business Administration (SBA).
Finally, it is ordered that this proceeding is terminated.
B. Authority and Further Information
38. Authority for this proceeding is contained in sections 4(i) and
(j), 8, 9, and 303(r) of the Communications Act of 1934, as
amended.\31\ It is ordered that this Report and Order is adopted. It is
further ordered that the Commission's Consumer and Governmental Affairs
Bureau, Reference Information Center, shall send a copy of this Report
and Order, including the Final Regulatory Flexibility Analysis (FRFA),
to the Chief Counsel for Advocacy of the Small Business Administration.
---------------------------------------------------------------------------
\31\ 47 U.S.C. 154(i)-(j), 159, & 303(r).
---------------------------------------------------------------------------
39. Further information about this proceeding may be obtained by
contacting the Fees Hotline at (888) 225-5322.
List of Subjects in 47 CFR Part 1
Administrative practice and procedures, Communications common
carriers, Radio, Telecommunications, Television.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Rule Changes
Accordingly, part 1 of Title 47 of the Code of Federal Regulations
is amended to read 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(r), 309
and 325(e).
2. Section 1.1110 is amended by revising paragraph (a) introductory
text to read as follows:
Sec. 1.1110 Form of payment.
(a) Fee payments should be in the form of a check, bank draft, on
money order denominated in U.S. dollars and drawn on a United States
financial institution and made payable to the Federal Communications
Commission or by a Visa, MasterCard, American Express, or Discover
credit card. No other credit card is acceptable. Fees for applications
and other filings paid by credit card will not be accepted unless the
credit card section of FCC Form 159 is completed in full. The
Commission discourages applicants from submitting cash and will not be
responsible for cash sent through the mail. Personal or corporate
checks dated more than six months prior to their submission to the
Commission's lockbox bank and postdated checks will not be accepted and
will be returned as deficient. Third party checks (i.e., checks with a
third party as maker or endorser) will not be accepted.
* * * * *
3. Section 1.1113 is amended by revising paragraph (a)(5) Note to
read as follows:
Sec. 1.1113 Return or refund of charges.
(a) * * *
(5) * * *
Note-- Payments in excess of an application fee will be refunded
only if the overpayment is $10 or more.
* * * * *
4. Section 1.1152 is revised to read as follows:
Sec. 1.1152 Schedule of annual regulatory fees and filing locations
for wireless radio services.
------------------------------------------------------------------------
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 $5.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
(c) Renewal Only (FCC 601 & 5.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
------------------------------------------------------------------------
220 MHz Nationwide
------------------------------------------------------------------------
(a) New, Renew/Mod (FCC 601 5.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
(c) Renewal Only (FCC 601 & 5.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
2. Microwave (47 CFR Pt. 101)
(Private):
(a) New, Renew/Mod (FCC 601 10.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 10.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
(c) Renewal Only (FCC 601 & 10.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only 10.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
3. 218-219 MHz Service:
(a) New, Renew/Mod (FCC 601 25.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 25.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
(c) Renewal Only (FCC 601 & 25.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
[[Page 46304]]
(d) Renewal Only 25.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
4. Shared Use Services:
------------------------------------------------------------------------
Land Mobile (Frequencies Below 470 MHz--except 220 MHz)
------------------------------------------------------------------------
(a) New, Renew/Mod (FCC 601 5.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
(c) Renewal Only (FCC 601 & 5.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
------------------------------------------------------------------------
General Mobile Radio Service
------------------------------------------------------------------------
(a) New, Renew/Mod (FCC 605 5.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
(c) Renewal Only (FCC 605 & 5.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
------------------------------------------------------------------------
Rural Radio (Part 22)
------------------------------------------------------------------------
(a) New, Additional 5.00 FCC, P.O. Box 358994,
Facility, Major Renew/Mod Pittsburgh, PA 15251-
(Electronic Filing) (FCC 5994.
601 & 159).
(b) Renewal, Minor Renew/ 5.00 FCC, P.O. Box 358994,
Mod (Electronic Filing) Pittsburgh, PA 15251-
(FCC 601 & 159). 5994.
------------------------------------------------------------------------
Marine Coast
------------------------------------------------------------------------
(a) New Renewal/Mod (FCC 5.00 FCC, P.O. Box 358130,
601 & 159). Pittsburgh, PA 15251-
5130.
(b) Renewal Only (FCC 601 & 5.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(c) Renewal Only 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
------------------------------------------------------------------------
Aviation Ground
------------------------------------------------------------------------
(a) New, Renewal/Mod (FCC 10.00 FCC, P.O. Box 358130,
601 & 159). Pittsburgh, PA 15251-
5130.
(b) Renewal Only (FCC 601 & 10.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(c) Renewal Only 10.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
601 & 159). 5994.
------------------------------------------------------------------------
Marine Ship
------------------------------------------------------------------------
(a) New, Renewal/Mod (FCC 10.00 FCC, P.O. Box 358130,
605 & 159). Pittsburgh, PA 15251-
5130.
(b) New, Renewal/Mod 10.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
(c) Renewal Only (FCC 605 & 10.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only 10.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
------------------------------------------------------------------------
Aviation Aircraft
------------------------------------------------------------------------
(a) New, Renew/Mod (FCC 605 5.00 FCC, P.O. Box 358130,
& 159). Pittsburgh, PA 15251-
5130.
(b) New, Renew/Mod 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
(c) Renewal Only (FCC 605 & 5.00 FCC, P.O. Box 358245,
159). Pittsburgh, PA 15251-
5245.
(d) Renewal Only 5.00 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
5. Amateur Vanity Call Signs:
(a) Initial or Renew (FCC 1.45 FCC, P.O. Box 358130,
605 & 159). Pittsburgh, PA 15251-
5130.
(b) Initial or Renew 1.45 FCC, P.O. Box 358994,
(Electronic Filing) (FCC Pittsburgh, PA 15251-
605 & 159). 5994.
6. CMRS Mobile Services (per \2\ .24 FCC, P.O. Box 358835,
unit) (FCC 159). Pittsburgh, PA 15251-
5835.
7. CMRS Messaging Services (per \3\ .08 FCC, P.O. Box 358835,
unit) (FCC 159). Pittsburgh, PA 15251-
5835.
------------------------------------------------------------------------
\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 Sec. 1.1102 of this
chapter.
\2\ These are standard fees that are to be paid in accordance with Sec.
1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with Sec.
1.1157(b) of this chapter.
5. Section 1.1153 is revised to read as follows:
Sec. 1.1153 Schedule of annual regulatory fees and filing locations
for mass media services.
------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
Radio [AM and FM] (47 CFR, Part 73)
------------------------------------------------------------------------
1. AM Class A:
<=20,000 population........ $500 FCC, Radio, P.O. Box
20,001-50,000 population... 925 358835, Pittsburgh, PA
15251-5835.
50,001-125,000 population.. 1,500
[[Page 46305]]
125,001-400,000 population. 2,250
400,001-1,000,000 3,125
population.
1,000,000 population....... 4,975
2. AM Class B:
<=20,000 population........ 375
20,001-50,000 population... 725
50,001-125,000 population.. 975
125,001-400,000 population. 1,575
400,001-1,000,000 2,525
population.
1,000,000 population....... 4,100
3. AM Class C:
<=20,000 population........ 275
20,001-50,000 population... 375
50,001-125,000 population.. 525
125,001-400,000 population. 800
400,001-1,000,000 1,425
population.
1,000,000 population....... 2,075
4. AM Class D:
<=20,000 population........ 325
20,001-50,000 population... 525
50,001-125,000 population.. 775
125,001-400,000 population. 950
400,001-1,000,000 1,700
population.
1,000,000 population....... 2,625
5. AM Construction Permit...... 370
6. FM Classes A, B1 and C3:
<=20,000 population........ 375
20,001-50,000 population... 725
50,001-125,000 population.. 975
125,001-400,000 population. 1,575
400,001-1,000,000 2,525
population.
?1,000,000 population...... 4,100
7. FM Classes B, C, C1 and C2:
<=20,000 population........ 500
20,001-50,000 population... 925
50,001-125,000 population.. 1,500
125,001-400,000 population. 2,250
400,001-1,000,000 3,125
population.
?1,000,000 population...... 4,975
8. FM Construction Permits..... 1,500
------------------------------------------------------------------------
TV (47 CFR, Part 73) VHF Commercial
------------------------------------------------------------------------
1. Markets 1 thru 10........... 47,050 FCC, TV Branch, P.O.
2. Markets 11 thru 25.......... 34,700 Box 358835,
Pittsburgh, PA 15251-
5835.
3. Markets 26 thru 50.......... 23,625
4. Markets 51 thru 100......... 15,150
5. Remaining Markets........... 3,525
6. Construction Permits........ 2,750
------------------------------------------------------------------------
UHF Commercial
------------------------------------------------------------------------
1. Markets 1 thru 10........... 12,800 FCC, UHF Commercial,
2. Markets 11 thru 25.......... 10,300 P.O. Box 358835,
Pittsburgh, PA 15251-
5835.
3. Markets 26 thru 50.......... 6,600
4. Markets 51 thru 100......... 3,875
5. Remaining Markets........... 1,075
6. Construction Permits........ 5,175
------------------------------------------------------------------------
Satellite UHF/VHF Commercial
------------------------------------------------------------------------
1. All Markets................. 805 FCC Satellite TV, P.O.
2. Construction Permits........ 420 Box 358835,
Pittsburgh, PA 15251-
5835.
Low Power TV, TV/FM Translator, 320 FCC, Low Power, P.O.
& TV/FM Booster (47 CFR Part Box 358835,
74). Pittsburgh, PA 15251-
5835.
Broadcast Auxiliary............ 10 FCC, Auxiliary, P.O.
Box 358835,
Pittsburgh, PA 15251-
5835.
Multipoint Distribution 430 FCC, Multipoint, P.O.
(Includes MMDS, MDS, & LMDS). Box 358835,
Pittsburgh, PA 15251-
5835
------------------------------------------------------------------------
6. Section 1.1154 is revised to read as follows:
Sec. 1.1154 Schedule of annual regulatory charges and filing locations
for common carrier services.
[[Page 46306]]
------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
Radio Facilities
------------------------------------------------------------------------
1. Microwave (Domestic Public $10.00 FCC, P.O. Box 358994,
Fixed) (Electronic Filing) Pittsburgh, PA 15251-
(FCC Form 601 & 159). 5994.
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
Carriers
------------------------------------------------------------------------
1. Interstate Telephone Service .00153 FCC, Carriers, P.O. Box
Providers (per interstate and 358835, Pittsburgh, PA
international end-user 15251-5835.
revenues (see FCC Form 499-A).
------------------------------------------------------------------------
7. Section 1.1155 is revised to read as follows:
Sec. 1.1155 Schedule of regulatory fees and filing locations for cable
television services.
------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
1. Cable Television Relay $65 FCC, Cable, P.O. Box
Service. .53 358835, Pittsburgh, PA
2. Cable TV System............. 15251-5835.
------------------------------------------------------------------------
8. Section 1.1156 is revised to read as follows:
Sec. 1.1156 Schedule of regulatory fees and filing locations for
international services.
------------------------------------------------------------------------
Fee amount Address
------------------------------------------------------------------------
Radio Facilities
------------------------------------------------------------------------
1. International (HF) Broadcast $495 FCC, International,
P.O. Box 358835,
Pittsburgh, PA 15251-
5835.
2. International Public Fixed.. 1,400 FCC, International,
P.O. Box 358835,
Pittsburgh, PA 15251-
5835.
Space Stations (Geostationary 99,700 FCC, Space Stations,
Orbit). P.O. Box 358835,
Pittsburgh, PA 15251-
5835.
Space Stations (Non- 103,200 FCC, Space Stations,
Geostationary Orbit). P.O. Box 358835,
Pittsburgh, PA 15251-
5835.
------------------------------------------------------------------------
Earth Stations
------------------------------------------------------------------------
Transmit/Receive & Transmit $140 FCC, Earth Station,
Only (per authorization or P.O. Box 358835,
registration). Pittsburgh, PA 15251-
5835.
------------------------------------------------------------------------
Carriers
------------------------------------------------------------------------
1. International Bearer $2.00 FCC, International,
Circuits (per active 64KB P.O. Box 358835,
circuit or equivalent). Pittsburgh, PA 15251-
5835.
------------------------------------------------------------------------
* * * * *
9. Section 1.1157 is amended by revising paragraphs (a) and (b) to
read as follows:
Sec. 1.1157 Payment of charges for regulatory fees.
* * * * *
(a) (1) The amount of the regulatory fee payment that is due with
any application for authorization shall be the multiple of the number
of years in the entire term of the requested license or other
authorization multiplied by the annual fee payment required in the
Schedule of Regulatory Fees, effective at the time the application is
filed. Except as set forth in Sec. 1.1160, advance payments shall be
final and shall not be readjusted during the term of the license or
authorization, notwithstanding any subsequent increase or decrease in
the annual amount of a fee required under the Schedule of Regulatory
Fees.
(2) Failure to file the appropriate regulatory fee due with an
application for authorization will result in the return of the
accompanying application, including an application for which the
Commission has assigned a specific filing deadline.
(b)(1) Payments of standard regulatory fees applicable to certain
wireless radio, mass media, common carrier, cable and international
services shall be filed in full on an annual basis at a time announced
by the Commission or the Managing Director, pursuant to delegated
authority, and published in the Federal Register.
(2) Large regulatory fees, as annually defined by the Commission,
may be submitted in installment payments or in a single payment on a
date certain as announced by the Commission or the Managing Director,
pursuant to delegated authority, and published in the Federal Register.
* * * * *
10. Section 1.1158 is amended by revising the section heading and
introductory paragraph to read as follows:
[[Page 46307]]
Sec. 1.1158 Form of payment for regulatory fees.
Any regulatory fee payment must be submitted in the form of a
check, bank draft or money order denominated in U.S. dollars and drawn
on a United States financial institution and made payable to the
Federal Communications Commission or by Visa, Mastercard, American
Express or Discover credit cards only. The Commission discourages
applicants from submitting cash payments and will not be responsible
for cash sent through the mail. Personal or corporate checks dated more
than six months prior to their submission to the Commission's lockbox
bank and postdated checks will not be accepted and will be returned as
deficient.
11. Section 1.1160 is amended by revising paragraph (a)(1) to read
as follows:
Sec. 1.1160 Refunds of regulatory fees.
(a) * * *
(1) When no regulatory fee is required or an excessive fee has been
paid. In the case of an overpayment, the refund amount will be based on
the applicants', permittees', or licensees' entire submission. All
refunds will be issued to the payor named in the appropriate block of
the FCC Form 159. Payments in excess of a regulatory fee will be
refunded only if the overpayment is $10.00 or more.
* * * * *
Note: The following attachments will not appear in the Code of
Federal Regulations.
Attachment A--Final Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act
(RFA),\32\-\35\ an Initial Regulatory Flexibility
Analysis (IRFA) of the possible significant economic impact on small
entities was incorporated in the Notice of Proposed Rulemaking, In
the Matter of Assessment and Collection of Regulatory Fees for
Fiscal Year 2002.\36\ The Commission sought written public comments
on the proposals in its FY 2002 regulatory fees NPRM, including
comments on the IRFA. This present Final Regulatory Flexibility
Analysis (FRFA) conforms to the RFA.\37\
---------------------------------------------------------------------------
\32\-\35\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601 et
seq., has been amended by the Contract With America Advancement Act
of 1996, Public Law No. 104-121, 110 Stat. 847 (1996) (CWAAA). Title
II of the CWAAA is the Small Business Regulatory Enforcement
Fairness Act of 1996 (SBREFA).
\36\ 67 FR 17325 (April 10, 2002).
\37\ 5 U.S.C. 604.
---------------------------------------------------------------------------
I. Need for, and Objectives of, the Proposed Rules
2. This rulemaking proceeding is initiated to amend the Schedule
of Regulatory Fees in the amount of $218,757,000, the amount that
Congress has required the Commission to recover. The Commission
seeks to collect the necessary amount through its revised fees, as
contained in the attached Schedule of Regulatory Fees, in the most
efficient manner possible and without undue burden on the public.
II. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
3. None.
III. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply
4. 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, if adopted.\38\ The RFA defines
the term ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' \39\ In addition, the term ``small business'' has
the same meaning as the term ``small business concern'' under the
Small Business Act.\40\ 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).\41\ A small
organization is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
\42\ Nationwide, as of 1992, there were approximately 275,801 small
organizations.\43\ ``Small governmental jurisdiction''\44\ generally
means ``governments of cities, counties, towns, townships, villages,
school districts, or special districts, with a population of less
than 50,000.'' \45\ As of 1992, there were approximately 85,006
governmental entities in the United States.\46\ This number includes
38,978 counties, cities, and towns; of these, 37,566, or 96%, have
populations of fewer than 50,000.\47\ The Census Bureau estimates
that this ratio is approximately accurate for all governmental
entities. Thus, of the 85,006 governmental entities, we estimate
that 81,600 (96%) are small entities. Below, we further describe and
estimate the number of small entity licensees and regulatees that
may be affected by these rules.
---------------------------------------------------------------------------
\38\ 5 U.S.C. 603(b)(3).
\39\ 5 U.S.C. 601(6).
\40\ 5 U.S.C. 601(3) (incorporating by reference the definition
of ``small business concern'' in 15 U.S.C. 632). Pursuant to the
RFA, the statutory definition of a small business applies ``unless
an agency, after consultation with the Office of Advocacy of the
Small Business Administration and after opportunity for public
comment, establishes one or more definitions of such term which are
appropriate to the activities of the agency and publishes such
definition(s) in the Federal Register.'' 5 U.S.C. 601(3).
\41\ Small Business Act, 15 U.S.C. 632 (1996).
\42\ 5 U.S.C. 601(4).
\43\ 1992 Economic Census, U.S. Bureau of the Census, Table 6
(special tabulation of data under contract to Office of Advocacy of
the U.S. Small Business Administration).
\44\ 47 CFR 1.1162
\45\ 5 U.S.C. 601(5).
\46\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census
of Governments.''
\47\ Id.
---------------------------------------------------------------------------
Cable Services or Systems
5. The SBA has developed a definition of small entities for
cable and other pay television services, which includes all such
companies generating $11 million or less in revenue annually.\48\
This definition includes cable systems operators, closed circuit
television services, direct broadcast satellite services, multipoint
distribution systems, satellite master antenna systems and
subscription television services. According to the Census Bureau
data from 1992, there were 1,788 total cable and other pay
television services and 1,423 had less than $11 million in
revenue.\49\
---------------------------------------------------------------------------
\48\ 13 CFR 121.201, North American Industry Classification
System (NAICS) codes 51321 and 51322.
\49\ 1992 Economic Census Industry and Enterprise Receipts Size
Report, Table 2D, NAICS codes 51321 and 51322 (U.S. Bureau of the
Census data under contract to the Office of Advocacy of the U.S.
Small Business Administration).
---------------------------------------------------------------------------
6. The Commission has developed its own definition of a small
cable system operator for purposes of rate regulation. Under the
Commission's rules, a ``small cable company'' is one serving fewer
than 400,000 subscribers nationwide.\50\ Based on our most recent
information, we estimate that there were 1,439 cable operators that
qualified as small cable system operators at the end of 1995.\51\
Since then, some of those companies may have grown to serve over
400,000 subscribers, and others may have been involved in
transactions that caused them to be combined with other cable
operators. Consequently, we estimate that there are fewer than 1,439
small entity cable system operators.
---------------------------------------------------------------------------
\50\ 47 CFR 76.901(e). The Commission developed this definition
based on its determination that a small cable system operator is one
with annual revenues of $100 million or less. Implementation of
Sections of the 1992 Cable Act: Rate Regulation, Sixth Report and
Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393 (1995),
60 FR 10534 (Feb. 27, 1995).
\51\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29,
1996 (based on figures for Dec. 30, 1995).
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7. The Communications Act of 1934, as amended, also contains a
definition of a small cable system operator, 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.'' \52\ The
Commission has determined that there are 68,980,000 subscribers in
the United States.\53\ Therefore, we estimate that an operator
serving fewer than 689,800 subscribers shall be deemed a small
operator, if its annual revenues, when combined with the total
annual revenues of all of its affiliates, do not exceed $250 million
in the aggregate.\54\ Based
[[Page 46308]]
on available data, we estimate that the number of cable operators
serving 689,800 subscribers or less totals 1,450.\55\ We do not
request nor collect information on whether cable system operators
are affiliated with entities whose gross annual revenues exceed
$250,000,000,\56\ and therefore are unable at this time to estimate
more accurately the number of cable system operators that would
qualify as small cable operators under the definition in the
Communications Act.
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\52\ 47 U.S.C. 543(m)(2).
\53\ Annual Assessment of the Status on Competition in the
Market for the Delivery of Video Programming, CS Docket No. 00-132,
Seventh Annual Report, FCC 01-1 (released January 8, 2001), Table C-
1.
\54\ Id. 47 CFR 76.1403(b).
\55\ FCC Announces New Subscriber Count for the Definition of
Small Cable Operator, Public Notice, DA-01-0158 (released January
24, 2001).
\56\ We do receive such information on a case-by-case basis only
if a cable operator appeals a local franchise authority's finding
that the operator does not qualify as a small cable operator
pursuant to Sec. 76.1403(b) of the Commission's rules. See 47 CFR
76.1403(d).
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8. Other Pay Services. Other pay television services are also
classified under the North American Industry Classification System
(NAICS) codes 51321 and 51322, which includes cable systems
operators, closed circuit television services, direct broadcast
satellite services (DBS),\57\ multipoint distribution systems
(MDS),\58\ satellite master antenna systems (SMATV), and
subscription television services.
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\57\ Direct Broadcast Services (DBS) are discussed with the
international services, infra.
\58\ Multipoint Distribution Services (MDS) are discussed with
the mass media services, infra.
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Wireline Competition Services and Related Entities
9. The most reliable source of information regarding the total
numbers of certain common carrier and related providers nationwide
appears to be data the Commission publishes annually in its
Telecommunications Provider Locator report, which encompasses data
compiled from FCC Form 499-A Telecommunications Reporting
Worksheets.\59\ According to data in the most recent report, there
are 5,679 interstate service providers.\60\ These providers include,
inter alia, incumbent local exchange carriers, competitive access
providers (CAPS)/competitive local exchange carriers (CLECs), local
resellers and other local exchange carriers, interexchange carriers,
operator service providers, prepaid calling card providers, toll
resellers, and other toll carriers.
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\59\ FCC, Common Carrier Bureau, Industry Analysis Division,
Telecommunications Provider Locator, Table 1 (November 2001).
\60\ FCC, Telecommunications Provider Locator at Table 1.
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10. We have included small incumbent local exchange carriers
(LECs) \61\ in this present RFA analysis. As noted above, a ``small
business'' under the RFA is one that, inter alia, meets the
pertinent small business size standard (e.g., a telephone
communications business having 1,500 or fewer employees), and ``is
not dominant in its field of operation.'' \62\ The SBA's Office of
Advocacy contends that, for RFA purposes, small incumbent LECs are
not dominant in their field of operation because any such dominance
is not ``national'' in scope.\63\ We have therefore included small
incumbent LECs in this FRFA analysis, although we emphasize that
this FRFA action has no effect on Commission analyses and
determinations in other, non-RFA contexts.
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\61\ See 47 U.S.C. 251(h) (defining ``incumbent local exchange
carrier'').
\62\ 5 U.S.C. 601(3).
\63\ Letter from Jere W. Glover, Chief Counsel for Advocacy,
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small
Business Act contains a definition of ``small business concern,''
which the RFA incorporates into its own definition of ``small
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C.
601(3) (RFA). SBA regulations interpret ``small business concern''
to include the concept of dominance on a national basis. 13 CFR
121.102(b). Since 1996, out of an abundance of caution, the
Commission has included small incumbent LECs in its regulatory
flexibility analyses. See, e.g., Implementation of the Local
Competition Provisions of the Telecommunications Act of 1996, CC
Docket, 96-98, First Report and Order, 11 FCC Rcd 15499, 16144-45
(1996), 61 FR 45476 (Aug. 29, 1996).
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11. Total Number of Telephone Companies Affected. The Census
Bureau reports that, at the end of 1992, there were 3,497 firms
engaged in providing telephone services, as defined therein, for at
least one year.\64\ This number contains a variety of different
categories of carriers, including local exchange carriers,
interexchange carriers, competitive access providers, operator
service providers, pay telephone operators, and resellers. It seems
certain that some of these 3,497 telephone service firms may not
qualify as small entities or small incumbent LECs because they are
not ``independently owned and operated.''\65\ It seems reasonable to
conclude that fewer than 3,497 telephone service firms are small
entity telephone service firms or small incumbent LECs that may be
affected by these revised rules.
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\64\ U.S. Department of Commerce, Bureau of the Census, 1992
Census of Transportation, Communications, and Utilities:
Establishment and Firm Size, at Firm Size 1-123 (1995) (1992
Census).
\65\ See generally 15 U.S.C. 632(a)(1).
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12. Wireline Carriers and Service Providers. The SBA has
developed a definition of small entities for telephone
communications companies other than radiotelephone (wireless)
companies. The Census Bureau reports that there were 2,321 such
telephone companies in operation for at least one year at the end of
1992.\66\ According to the SBA's definition, a small business
telephone company other than a radiotelephone (wireless) company is
one employing no more than 1,500 persons.\67\ All but 26 of the
2,321 non-radiotelephone (wireless) companies listed by the Census
Bureau were reported to have fewer than 1,000 employees. Even if all
26 of the remaining companies had more than 1,500 employees, there
would still be 2,295 non-radiotelephone (wireless) companies that
might qualify as small entities or small incumbent LECs. Although it
seems certain that some of these carriers are not independently
owned and operated, we are unable at this time to estimate with
greater precision the number of wireline carriers and service
providers that would qualify as small business concerns under SBA's
definition. Therefore, we estimate that fewer than 2,295 small
telephone communications companies other than radiotelephone
(wireless) companies are small entities or small incumbent LECs that
may be affected by these revised rules.
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\66\ 1992 Census, supra, at Firm Size 1-123.
\67\ 13 CFR 121.201, NAICS codes 51331, 51333, and 51334.
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13. Local Exchange Carriers (LECS), Competitive Access Providers
(CAPs), Interexchange Carriers (IXCs), Operator Service Providers
(OSPs), Payphone Providers, and Resellers. Neither the Commission
nor the SBA has developed a definition for small LECs, competitive
access providers (CAPs), interexchange carriers (IXCs), operator
service providers (OSPs), payphone providers, or resellers. The
closest applicable definition for these carrier-types under SBA
rules is for telephone communications companies other than
radiotelephone (wireless) companies.\68\ The most reliable source of
information that we know regarding the number of these carriers
nationwide appears to be the data that we collect annually in
connection with the FCC 499-A Telecommunications Reporting
Worksheets.\69\ According to our most recent data, there are 1,329
incumbent and other LECs, 532 CAPs and competitive local exchange
carriers (CLECs), 229 IXCs, 22 OSPs, 936 payphone providers, 32
prepaid calling card providers, 38 other toll carriers, and 710
local and toll resellers.\70\ Although it seems certain that some of
these carriers are not independently owned and operated, or have
more than 1,500 employees, we are unable at this time to estimate
with greater precision the number of these carriers that would
qualify as small business concerns under the SBA's definition.
Therefore, we estimate that there are fewer than 1,329 small entity
incumbent and other LECs, 532 CAPs/CLECs, 229 IXCs, 22 OSPs, 936
payphone providers, and 710 local and toll resellers, 32 prepaid
calling card providers, and 38 other toll carriers that may be
affected by the revised rules.
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\68\ 13 CFR 121.201, NAICS codes 51331, 51333, and 51334.
\69\ See Telecommunications Provider Locator at Table 1.
\70\ Telecommunications Provider Locator at Table 1. The total
for resellers includes both toll resellers and local resellers.
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International Services
14. The Commission has not developed a definition of small
entities applicable to licensees in the international services.
Therefore, the applicable definition of small entity is generally
the definition under the SBA rules applicable to Communications
Services, Not Elsewhere Classified (NEC).\71\ This definition
provides that a small entity is expressed as one with $11.0 million
or less in annual receipts.\72\ According to the Census Bureau,
there were a total of 848 communications services providers, NEC, in
operation in 1992, and a total of 775 had annual receipts of less
than $10.0 million.\73\
[[Page 46309]]
The Census report does not provide more precise data.
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\71\ An exception is the Direct Broadcast Satellite (DBS)
Service, infra.
\72\ 13 CFR 121.201, NAICS codes 48531, 513322, 51334, and
51339.
\73\ 1992 Economic Census Industry and Enterprise Receipts Size
Report, Table 2D, NAICS codes 48531, 513322, 51334, and 513391 (U.S.
Bureau of the Census data under contract to the Office of Advocacy
of the U.S. Small Business Administration).
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15. International Broadcast Stations. Commission records show
that there are approximately 19 international high frequency
broadcast station authorizations. We do not request nor collect
annual revenue information, and are unable to estimate the number of
international high frequency broadcast stations that would
constitute a small business under the SBA definition. However, the
Commission estimates that only six international high frequency
broadcast stations are subject to regulatory fee payments.
16. International Public Fixed Radio (Public and Control
Stations). There is one licensee in this service subject to payment
of regulatory fees, and the licensee does not constitute a small
business under the SBA definition.
17. Fixed Satellite Transmit/Receive Earth Stations. There are
approximately 4,303 earth station authorizations, a portion of which
are Fixed Satellite Transmit/Receive Earth Stations. We do not
request nor collect annual revenue information, and are unable to
estimate the number of the earth stations that would constitute a
small business under the SBA definition.
18. Fixed Satellite Small Transmit/Receive Earth Stations. There
are approximately 4,303 earth station authorizations, a portion of
which are Fixed Satellite Small Transmit/Receive Earth Stations. We
do not request nor collect annual revenue information, and are
unable to estimate the number of fixed small satellite transmit/
receive earth stations that would constitute a small business under
the SBA definition.
19. Fixed Satellite Very Small Aperture Terminal (VSAT) Systems.
These stations operate on a primary basis, and frequency
coordination with terrestrial microwave systems is not required.
Thus, a single ``blanket'' application may be filed for a specified
number of small antennas and one or more hub stations. There are 485
current VSAT System authorizations. We do not request nor collect
annual revenue information, and are unable to estimate the number of
VSAT systems that would constitute a small business under the SBA
definition.
20. Mobile Satellite Earth Stations. There are 21 licensees. We
do not request nor collect annual revenue information, and are
unable to estimate the number of mobile satellite earth stations
that would constitute a small business under the SBA definition.
21. Radio Determination Satellite Earth Stations. There are four
licensees. We do not request nor collect annual revenue information,
and are unable to estimate the number of radio determination
satellite earth stations that would constitute a small business
under the SBA definition.
22. Space Stations (Geostationary). There are presently an
estimated 71 Geostationary Space Station authorizations. We do not
request nor collect annual revenue information, and are unable to
estimate the number of geostationary space stations that would
constitute a small business under the SBA definition.
23. Space Stations (Non-Geostationary). There are presently six
Non-Geostationary Space Station authorizations. We do not request
nor collect annual revenue information, and are unable to estimate
the number of non-geostationary space stations that would constitute
a small business under the SBA definition.
24. Direct Broadcast Satellites. Because DBS provides
subscription services, DBS falls within the SBA-recognized
definition of ``Cable and Other Pay Television Services.'' \74\ This
definition provides that a small entity is one with $11.0 million or
less in annual receipts.\75\ Currently, there are nine DBS
authorizations, though there are only two DBS companies in operation
at this time. We do not request nor collect annual revenue
information for DBS services, and are unable to determine the number
of DBS operators that would constitute a small business under the
SBA definition.
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\74\ 13 CFR 121.201, NAICS codes 51321 and 51322.
\75\ 13 CFR 121.201, NAICS codes 51321 and 51322.
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Media Services
25. Commercial Radio and Television Services. The proposed rules
and policies will apply to television broadcasting licensees and
radio broadcasting licensees.\76\ The SBA defines a television
broadcasting station that has $10.5 million or less in annual
receipts as a small business.\77\ Television broadcasting stations
consist of establishments primarily engaged in broadcasting visual
programs by television to the public, except cable and other pay
television services.\78\ Included in this industry are commercial,
religious, educational, and other television stations.\79\ Also
included are establishments primarily engaged in television
broadcasting and which produce taped television program
materials.\80\ Separate establishments primarily engaged in
producing taped television program materials are classified under
another NAICS number.\81\ There were 1,509 television stations
operating in the nation in 1992.\82\ That number has remained fairly
constant as indicated by the approximately 1,686 operating
television broadcasting stations in the nation as of September 30,
2001.\83\ For 1992,\84\ the number of television stations that
produced less than $10.0 million in revenue was 1,155
establishments.\85\ Only commercial stations are subject to
regulatory fees.
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\76\ While 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
suitable for purposes of determining the impact of the proposals on
small television and radio stations, for purposes of this Report and
Order we utilize the SBA's definition in determining the number of
small businesses to which the proposed rules would apply. We reserve
the right to adopt, in the future, a more suitable definition of
``small business'' as applied to radio and television broadcast
stations or other entities subject to the proposed rules in this
Report and Order, and to consider further the issue of the number of
small entities that are radio and television broadcasters or other
small media entities. See Report and Order in MM Docket No. 93-48
(Children's Television Programming), 11 FCC Rcd 10660, 10737-38
(1996), 61 FR 43981 (Aug. 27, 1996), citing 5 U.S.C. 601(3).
\77\ 13 CFR 121.201, NAICS code 51312.
\78\ Economics and Statistics Administration, Bureau of Census,
U.S. Department of Commerce, 1992 Census of Transportation,
Communications and Utilities, Establishment and Firm Size, Series
UC92-S-1, Appendix A-9 (1995) (1992 Census, Series UC92-S-1).
\79\ Id.; see Executive Office of the President, Office of
Management and Budget, Standard Industrial Classification Manual
(1987), at 283, which describes ``Television Broadcasting Stations''
(SIC code 4833, now NAICS code 51312) as: 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 here are establishments primarily engaged in
television broadcasting and which produce taped television program
materials.
\80\ 1992 Census, Series UC92-S-1, at Appendix A-9.
\81\ Id., NAICS code 51211 (Motion Picture and Video Tape
Production); NAICS 51229 (Theatrical Producers and Miscellaneous
Theatrical Services) (producers of live radio and television
programs).
\82\ FCC News Release No. 31327 (January 13, 1993); 1992 Census,
Series UC92-S-1, at Appendix A-9.
\83\ FCC News Release, ``Broadcast Station Totals as of
September 30, 2001.''
\84\ A census to determine the estimated number of
Communications establishments is performed every five years, in
years ending with a ``2'' or ``7.'' See 1992 Census, Series UC92-S-
1, at III.
\85\ The amount of $10 million was used to estimate the number
of small business establishments because the relevant Census
categories stopped at $9,999,999 and began at $10,000,000. No
category for $10.5 million existed. Thus, the number is as accurate
as it is possible to calculate with the available information.
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26. Additionally, the SBA defines a radio broadcasting station
that has $5 million or less in annual receipts as a small
business.\86\ A radio broadcasting station is an establishment
primarily engaged in broadcasting aural programs by radio to the
public.\87\ Included in this industry are commercial, religious,
educational, and other radio stations.\88\ Radio broadcasting
stations, which primarily are engaged in radio broadcasting and
which produce radio program materials, are similarly included.\89\
However, radio stations which are separate establishments and are
primarily engaged in producing radio program material are classified
under another NAICS number.\90\ 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.\91\ Official Commission
records indicate that at total of 11,334 individual radio stations
were operating in
[[Page 46310]]
1992.\92\ As of September 30, 2001, Commission records indicate that
a total of 13,012 radio stations were operating, of which 8,285 were
FM stations.\93\ Only commercial stations are subject to regulatory
fees.
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\86\ 13 CFR 121.201, NAICS codes 513111 and 513112.
\87\ 1992 Census, Series UC92-S-1, at Appendix A-9.
\88\ Id.
\89\ Id.
\90\ Id.
\91\ The Census Bureau counts radio stations located at the same
facility as one establishment. Therefore, each co-located AM/FM
combination counts as one establishment.
\92\ FCC News Release, No. 31327 (Jan. 13, 1993).
\93\ FCC News Release, ``Broadcast Station Totals as of
September 30, 2001.''
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27. The rules may affect an estimated total of 1,230 television
stations, approximately 1,281 of which are considered small
businesses.\94\ The revised rules will also affect an estimated
total of 10,819 radio stations, approximately 12,209 of which are
small businesses.\95\ These estimates may overstate the number of
small entities because the revenue figures on which they are based
do not include or aggregate revenues from non-television or non-
radio affiliated companies. There are also 2,256 low power
television stations (LPTV).\96\ Given the nature of this service, we
will presume that all LPTV licensees qualify as small entities under
the SBA definition.
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\94\ We use an estimated figure of 77 percent (from 1992) of TV
stations operating at less than $10 million and apply it to the 2000
total of 1,663 TV stations to arrive at 1,281 stations categorized
as small businesses.
\95\ We use the 96% figure of radio station establishments with
less than $5 million revenue from data presented in the year 2000
estimate (FCC News Release, September 30, 2000) and apply it to the
12,717 individual station count to arrive at 12,209 individual
stations as small businesses.
\96\ FCC News Release, ``Broadcast Station Totals as of
September 30, 2001.''
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28. 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.\97\
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\97\ 13 CFR 121.201, NAICS codes 513111 and 513112.
---------------------------------------------------------------------------
29. The Commission estimates that there are approximately 3,600
translators and boosters. 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
(either $5 million for a radio station or $10.5 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.\98\
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\98\ 15 U.S.C. 632.
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30. Multipoint Distribution Service (MDS). This service has
historically provided primarily point-to-multipoint and one-way
video services to subscribers.\99\ The Commission recently amended
its rules to allow MDS licensees to provide a wide range of high-
speed, two-way services to a variety of users.\100\ In connection
with the 1996 MDS auction, the Commission defined small businesses
as entities that had annual average gross revenues for the three
preceding years not in excess of $40 million.\101\ The Commission
established this small business definition in the context of this
particular service and with the approval of the SBA.\102\ The MDS
auction resulted in 67 successful bidders obtaining licensing
opportunities for 493 Basic Trading Areas (BTAs).\103\ Of the 67
auction winners, 61 met the definition of a small business. At this
time, we estimate that of the 61 small business MDS auction winners,
48 remain small business licensees. In addition to the 48 small
businesses that hold BTA authorizations, there are approximately 392
incumbent MDS licensees that are considered small entities.\104\
After adding the number of small business auction licensees to the
number of incumbent licensees not already counted, we find that
there are currently approximately 440 MDS licensees that are defined
as small businesses under either the SBA or the Commission's rules.
Some of those 440 small business licensees may be affected by these
revised rules.
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\99\ For purposes of this item, MDS includes single channel
Multipoint Distribution Service (MDS), Local Multipoint Distribution
Service (LMDS), and the Multichannel Multipoint Distribution Service
(MMDS). See 66 FR 36177.
\100\ Amendment of Parts 21 and 74 to Enable Multipoint
Distribution Service and Instructional Television Fixed Service
Licensees to Engage in Fixed Two-Way Transmissions, 13 FCC Rcd 19112
(1998), recon., 14 FCC Rcd 12764 (1999), further recon., 15 FCC Rcd
14566 (2000).
\101\ 47 CFR 21.961 and 1.2110.
\102\ Amendment of Parts 21 and 74 of the Commission's Rules
with Regard to Filing Procedures in the Multipoint Distribution
Service and in the Instructional Television Fixed Service and
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, 10 FCC Rcd 9589, 9670 (1995), 60 FR 36524 (July
17, 1995).
\103\ Basic Trading Areas (BTAs) were designed by Rand McNally
and are the geographic areas by which MDS was auctioned and
authorized. See id. At 9608.
\104\ 47 U.S.C. 309(j). (Hundreds of stations were licensed to
incumbent MDS licensees prior to implementation of Section 309(j) of
the Communications Act of 1934, 47 U.S.C. Section 309(j). For these
pre-auction licenses, the applicable standard is SBA's small
business size standard for ``other telecommunications'' (annual
receipts of $11 million or less). See 13 CFR 121.201.
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Wireless and Commercial Mobile Services
31. Cellular Licensees. Neither the Commission nor the SBA has
developed a definition of small entities specific to cellular
licensees. Therefore, the applicable definition of small entity is
the definition under the SBA rules applicable to radiotelephone
(wireless) companies. This provides that a small entity is a
radiotelephone (wireless) company employing no more than 1,500
persons.\105\ According to the Census Bureau, only twelve
radiotelephone (wireless) firms from a total of 1,178 such firms
which operated during 1992 had 1,000 or more employees.\106\ Even if
all twelve of these firms were cellular telephone companies, nearly
all cellular carriers were small businesses under the SBA's
definition. In addition, we note that there are 1,758 cellular
licenses; however, a cellular licensee may own several licenses.
According to the November 2001 Telecommunications Provider Locater,
858 wireless telephony providers reported that they were engaged in
the provision of either cellular service, Personal Communications
Service (PCS) services, and SMR telephony carriers, which are placed
together in the data.\107\ We do not have data specifying the number
of these carriers that are not independently owned and operated or
have more than 1,500 employees, and are unable at this time to
estimate with greater precision the number of cellular service
carriers that would qualify as small business concerns under the
SBA's definition. We estimate that there are fewer than 858 small
wireless service providers that may be affected by these revised
rules.
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\105\ 13 CFR 121.201, NAICS code 513322.
\106\ 1992 Census, Series UC92-S-1, at Table 5, NAICS code
513322.
\107\ Telecommunications Provider Locater, Table 1 (November
2001).
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32. 220 MHz Radio Service--Phase I Licensees. The 220 MHz
service has both Phase I and Phase II licenses. Phase I licensing
was conducted by lotteries in 1992 and 1993. There are approximately
1,515 such non-nationwide licensees and four nationwide licensees
currently authorized to operate in the 220 MHz band. The Commission
has not developed a definition of small entities specifically
applicable to such incumbent 220 MHz Phase I licensees. To estimate
the number of such licensees that are small businesses, we apply the
definition under the SBA rules applicable to Radiotelephone
(wireless) Communications companies. This definition provides that a
small entity is a radiotelephone (wireless) company employing no
more than 1,500 persons.\108\ According to the Census Bureau, only
12 radiotelephone (wireless) firms out of a total of 1,178 such
firms which operated during 1992 had 1,000 or more employees.\109\
If this general ratio continues in 2001 in the context of Phase I
220 MHz licensees, we estimate that nearly all such licensees are
small businesses under the SBA's definition.
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\108\ 13 CFR 121.201, NAICS code 513322.
\109\ U.S. Bureau of the Census, U.S. Department of Commerce,
1992 Census of Transportation, Communications, and Utilities, UC92-
S-1, Subject Series, Establishment and Firm Size, Table 5,
Employment Size of Firms; 1992, NAICS codes 513321, 513322, and
51333.
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33. 220 MHz Radio Service--Phase II Licensees. The Phase II 220
MHz service is a new service, and is subject to spectrum auctions.
In the 220 MHz Third Report and Order, 62 FR 16004, April 3, 1997,
we adopted criteria for defining small and very
[[Page 46311]]
small businesses for purposes of determining their eligibility for
special provisions such as bidding credits and installment
payments.\110\ We have defined a small business as an entity that,
together with its affiliates and controlling principals, has average
gross revenues not exceeding $15 million for the preceding three
years. A very small business is defined as an entity that, together
with its affiliates and controlling principals, has average gross
revenues that do not exceed $3 million for the preceding three
years.\111\ The SBA has approved these definitions.\112\ Auctions of
Phase II licenses commenced on September 15, 1998, and closed on
October 22, 1998.\113\ In the first auction, 908 licenses were
auctioned in three different-sized geographic areas: three
nationwide licenses, 30 Regional Economic Area Group (EAG) Licenses,
and 875 Economic Area (EA) Licenses. Of the 908 licenses auctioned,
693 were sold.\114\ Thirty-nine small businesses won licenses in the
first 220 MHz auction. The second auction included 225 licenses: 216
EA licenses and 9 EAG licenses. Fourteen companies claiming small
business status won 158 licenses.\115\
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\110\ 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-
70, at paragraphs 291-295 (1997).
\111\ 220 MHz Third Report and Order, 12 FCC Rcd at 11068-69,
paragraph 291.
\112\ See Letter to D. Phython, Chief, Wireless
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA
(January 6, 1998).
\113\ See generally Public Notice, ``220 MHz Service Auction
Closes,'' Public Notice, 14 FCC Rcd 605 (1998).
\114\ Public Notice, ``FCC Announces It is Prepared to Grant 654
Phase II 220 MHz Licenses After Final Payment is Made,'' Public
Notice, 14 FCC Rcd 1085 (1999).
\115\ ``Phase II 220 MHz Service Spectrum Auction Closes'',
Public Notice, 14 FCC Rcd 11218 (1999).
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34. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band
Order, we adopted criteria for defining small businesses and very
small businesses for purposes of determining their eligibility for
special provisions such as bidding credits and installment
payments.\116\ We have defined a small business as an entity that,
together with its affiliates and controlling principals, has average
gross revenues not exceeding $15 million for the preceding three
years. Additionally, a very small business is defined as an entity
that, together with its affiliates and controlling principals, has
average gross revenues that are not more than $3 million for the
preceding three years. An auction of 52 Major Economic Area (MEA)
licenses commenced on September 6, 2000, and closed on September 21,
2000.\117\ Of the 104 licenses auctioned, 96 licenses were sold to 9
bidders. Five of these bidders were small businesses that won a
total of 26 licenses. A second auction of 700 MHz Guard Band
licenses commenced on February 13, 2001 and closed on February 21,
2001. All eight of the licenses auctioned were sold to three
bidders. One of these bidders was a small business that won a total
of two licenses.\118\
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\116\ See Service Rules for the 746-764 MHz Bands, and Revisions
to Part 27 of the Commission's Rules, WT Docket No. 99-168, Second
Report and Order, 65 FR 17599 (April 4, 2000).
\117\ See generally Public Notice, ``220 MHz Service Auction
Closes,'' Report No. WT 98-36 (Wireless Telecommunications Bureau,
October 23, 1998).
\118\ ``700 MHz Guard Bands Auction Closes,'' Public Notice, DA
01-478 (rel. February 22, 2001).
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35. Private and Common Carrier Paging. In the Paging Third
Report and Order, we adopted criteria for defining small businesses
and very small businesses for purposes of determining their
eligibility for special provisions such as bidding credits and
installment payments.\119\ We have defined a small business as an
entity that, together with its affiliates and controlling
principals, has average gross revenues not exceeding $15 million for
the preceding three years. Additionally, a very small business is
defined as an entity that, together with its affiliates and
controlling principals, has average gross revenues that are not more
than $3 million for the preceding three years.\120\ The SBA has
approved these definitions.\121\ An auction of Metropolitan Economic
Area licenses commenced on February 24, 2000, and closed on March 2,
2000.\122\ Of the 985 licenses auctioned, 440 were sold. Fifty-seven
companies claiming small business status won. At present, there are
approximately 24,000 Private-Paging site-specific licenses and
74,000 Common Carrier Paging licenses. According to the most recent
data in the Telecommunications Provider Locator, 608 carriers
reported that they were engaged in the provision of either paging or
``other mobile'' services, which are placed together in the
data.\123\ We do not have data specifying the number of these
carriers that are not independently owned and operated or have more
than 1,500 employees, and therefore are unable at this time to
estimate with greater precision the number of paging carriers that
would qualify as small business concerns under the SBA's definition.
Consequently, we estimate that there are fewer than 608 small paging
carriers that may be affected by these revised rules. We estimate
that the majority of private and common carrier paging providers
would qualify as small entities under the SBA definition.
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\119\ 220 MHz Third Report and Order, 62 FR 16004 (April 3,
1997), at paragraphs 291-295.
\120\ 700 MHz Guard Band Auction Closes,'' Public Notice, 15 FCC
Rcd 18026 (2000).
\121\ ``Revision of Part 22 and Part 90 of the Commission's
Rules to Facilitate Future Development of Paging Systems,''
Memorandum Opinion and Order on Reconsideration and Third Report and
Order, 14 FCC Rcd 10030, at paragraph 98-107 (1999).
\122\ ``Revision of Part 22 and Part 90 of the Commission's
Rules to Facilitate Future Development of Paging Systems,''
Memorandum Opinion and Order on Reconsideration and Third Report and
Order, 14 FCC Rcd 10030, at paragraph 98 (1999).
\123\ See Telecommunications Provider Locater at Table 1
(November 2001).
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36. Broadband Personal Communications Service (PCS). The
broadband PCS spectrum is divided into six frequencies designated A
through F, and the Commission has held auctions for each block. The
Commission defined ``small entity'' for Blocks C and F as an entity
that has average gross revenues of less than $40 million in the
three previous calendar years.\124\ For Block F, an additional
classification for ``very small business'' was added and is defined
as an entity that, together with its affiliates, has average gross
revenues of not more than $15 million for the preceding three
calendar years.\125\ These regulations defining ``small entity'' in
the context of broadband PCS auctions have been approved by the
SBA.\126\ No small businesses within the SBA-approved definition bid
successfully for licenses in Blocks A and B. There were 90 winning
bidders that qualified as small entities in the Block C auctions. A
total of 93 small and very small business bidders won approximately
40% of the 1,479 licenses for Blocks D, E, and F.\127\ On March 23,
1999, the Commission re-auctioned 347 C, D, E, and F Block licenses;
there were 48 small business winning bidders. An additional
classification for ``very small business'' was added for C Block and
is defined as ``an entity that together with its affiliates and
persons or entities that hold interest in such entity and their
affiliates, has average annual gross revenues that are not more than
forty million dollars for the proceding three years.\128\ The SBA
approved this definition.'' \129\ Based on this information, we
conclude that the number of small broadband PCS licensees will
include the 90 winning C Block bidders and the 93 qualifying bidders
in the D, E, and F blocks, plus the 48 winning bidders in the re-
auction, for a total of 231 small entity PCS providers as defined by
the SBA and the Commission's auction rules. On January 26, 2001, the
Commission completed the auction of 422 C and F Broadband PCS
licenses in Auction No. 35. Of the 35 winning bidders in this
auction, 29 qualified as small or very small businesses.
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\124\ See generally ``929 and 931 MHz Paging Auction Closes,''
Public Notice, 15 FCC Rcd 4858 (2000).
\125\ See Amendment of Parts 20 and 24 of the Commission's
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket
No. 96-59 Sections 60 (released June 24, 1996), 61 FR 33859 (July 1,
1996).
\126\ See, e.g., Implementation of Section 309(j) of the
Communications Act--Competitive Bidding, PP Docket No. 93-253, Fifth
Report and Order, 9 FCC Rcd 5532, 5581-84 (1994).
\127\ FCC News, Broadband PCS, D, E and F Block Auction Closes,
No. 71744 (released January 14, 1997).
\128\ See Amendment of the Commission's Rules Regarding
Installment Payment Financing for Personal Communications Services
(PCS) Licenses, Fourth Report and Order, 13 FCC Rcd 15743 at 15767-
68, paragraphs 45-46 (1998).
\129\ See Letter to Amy Zoslov, Chief, Auctions and Industry
Analysis Division from A. Alvarez, Administrator, SBA (December 2,
1998).
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37. Narrowband PCS. To date, two auctions of narrowband PCs
licenses have been conducted. Through these auctions, the Commission
has awarded a total of 41 licenses, out of which 11 were obtained by
small businesses. For purposes of the two auctions that have already
been held, small businesses were defined as entities with average
gross revenues for the prior three calendar years of $40 million or
less. To ensure meaningful participation of small business entities
in the auctions, the
[[Page 46312]]
Commission adopted a two-tiered definition of small businesses in
the Narrowband PCS Second Report and Order. \130\ A small business
is an entity that, together with affiliates and controlling
interests, has average gross revenues for the three preceding years
of not more than $40 million. A very small business is an entity
that, together with affiliates and controlling interests, has
average gross revenues for the three preceding years of not more
than $15 million. These definitions have been approved by the SBA.
\131\ In the future, the Commission will auction 459 licenses to
serve Metropolitan Trading Areas (MTAs) and 408 response channel
licenses. There is also one megahertz of narrowband PCS spectrum
that has been held in reserve and that the Commission has not yet
decided to release for licensing. The Commission cannot predict
accurately the number of licenses that will be awarded to small
entities in future auctions.
However, four of the 16 winning bidders in the two previous
narrowband PCS auctions were small businesses, as that term was
defined under the Commission's Rules. The Commission assumes, for
purposes of this IRFA, that a large portion of the remaining
narrowband PCS licenses will be awarded to small entities. The
Commission also assumes that at least some small businesses will
acquire narrowband PCS licenses by means of the Commission's
partitioning and disaggregation rules.
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\130\ In the Matter of Amendment of the Commission's Rules to
Establish New Personal Communications Services, Narrowband PCS,
Docket No. ET 92-100, Docket No. PP93-253, Second Report and Order
and Second Further Notice of Proposed Rulemaking, 65 FR 35875 (June
6, 2000).
\131\ See Letter to Amy Zoslov, Chief, Auctions and Industry
Analysis Division from A. Alvarez, Administrator, SBA (December 2,
1998).
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38. Rural Radiotelephone Service. The Commission has not adopted
a definition of small entity specific to the Rural Radiotelephone
Service. \132\ A significant subset of the Rural Radiotelephone
Service is the Basic Exchange Telephone Radio Systems (BETRS). \133\
We will use the SBA's definition applicable to radiotelephone
(wireless) companies, i.e., an entity employing no more than 1,500
persons. \134\ There are approximately 1,000 licensees in the Rural
Radiotelephone Service, and we estimate that almost all of them
qualify as small entities under the SBA's definition.
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\132\ The service is defined in Sec. 22.99 of the Commission's
Rules, 47 CFR 22.99.
\133\ BETRS is defined in Secs. 22.757 and 22.759 of the
Commission's Rules, 47 CFR 22.757 and 22.759.
\134\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
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39. Air-Ground Radiotelephone Service. The Commission has not
adopted a definition of small entity specific to the Air-Ground
Radiotelephone Service. \135\ We will use the SBA's definition
applicable to radiotelephone (wireless) companies, i.e., an entity
employing no more than 1,500 persons. \136\ There are approximately
100 licensees in the Air-Ground Radiotelephone Service, and we
estimate that almost all of them qualify as small under the SBA
definition.
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\135\ The service is defined in Sec. 22.99 of the Commission's
Rules, 47 CFR 22.99.
\136\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
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40. Specialized Mobile Radio (SMR). Pursuant to 47 CFR
90.814(b)(1), the Commission has defined ``small business'' for
purposes of auctioning 900 MHz SMR licenses, 800 MHz SMR licenses
for the upper 200 channels, and 800 MHz SMR licenses for the lower
230 channels on the 800 MHz band, as a firm that has had average
annual gross revenues of $15 million or less in the three preceding
calendar years. \137\ The SBA has approved this small business size
standard for the 800 MHz and 900 MHz auctions. \138\ Sixty winning
bidders for geographic area licenses in the 900 MHz SMR band
qualified as small business under the $15 million size standard. The
auction of the 525 800 MHz SMR geographic area licenses for the
upper 200 channels began on October 28, 1997, and was completed on
December 8, 1997. \139\ Ten winning bidders for geographic area
licenses for the upper 200 channels in the 800 MHz SMR band
qualified as small businesses under the $15 million size standard.
\140\ An auction of 800 MHz SMR geographic area licenses for the
General Category channels began on August 16, 2000 and was completed
on September 1, 2000. Of the 1,050 licenses offered in that auction,
1,030 licenses were sold. Eleven winning bidders for licenses for
the General Category channels in the 800 MHz SMR band qualified as
small business under the $15 million size standard. In an auction
completed on December 5, 2000, a total of 2,800 Economic Area
licenses in the lower 80 channels of the 800 MHz SMR service were
sold. Of the 22 winning bidders, 19 claimed small business status.
Thus, 40 winning bidders for geographic licenses in the 800 MHz SMR
band qualified as small businesses. In addition, there are numerous
incumbent site-by-site SMR licenses on the 800 and 900 MHz band.
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\137\ 47 CFR 90.814(b)(1).
\138\ See Letter to Thomas J. Sugrue, Chief, Wireless
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA
(August 10, 1999).
\139\ See Letter to Daniel B. Phython, Chief, Wireless
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA
(October 27, 1997).
\140\ Id.
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41. These revised fees in the Report and Order apply to SMR
providers in the 800 MHz and 900 MHz bands that either hold
geographic area licenses or have obtained extended implementation
authorizations. We do not know how many firms provide 800 MHz or 900
MHz geographic area SMR service pursuant to extended implementation
authorizations, nor how many of these providers have annual revenues
of no more than $15 million. One firm has over $15 million in
revenues. We assume, for purposes of this FRFA, that all of the
remaining existing extended implementation authorizations are held
by small entities, as that term is defined by the SBA.
42. Private Land Mobile Radio (PLMR). PLMR systems serve an
essential role in a range of industrial, business, land
transportation, and public safety activities. These radios are used
by companies of all sizes operating in all U.S. business categories.
The Commission has not developed a definition of small entity
specifically applicable to PLMR licensees due to the vast array of
PLMR users. For the purpose of determining whether a licensee is a
small business as defined by the SBA, each licensee would need to be
evaluated within its own business area.
43. The Commission is unable at this time to estimate the number
of small businesses which could be impacted by the rules. The
Commission's 1994 Annual Report on PLMRs \141\ indicates that at the
end of fiscal year 1994 there were 1,087,267 licensees operating
12,481,989 transmitters in the PLMR bands below 512 MHz. Because any
entity engaged in a commercial activity is eligible to hold a PLMR
license, the revised rules in this context could potentially impact
every small business in the United States.
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\141\ Federal Communications Commission, 60th Annual Report,
Fiscal Year 1994, at paragraph 116.
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44. Amateur Radio Service. We estimate that 8,000 applicants
will apply for vanity call signs in FY 2001. These licensees are
presumed to be individuals, and therefore not small entities. All
other amateur licensees are exempt from payment of regulatory fees.
45. Aviation and Marine Radio Service. Small businesses in the
aviation and marine radio services use a marine very high frequency
(VHF) radio, any type of emergency position indicating radio beacon
(EPIRB) and/or radar, a VHF aircraft radio, and/or any type of
emergency locator transmitter (ELT). The Commission has not
developed a definition of small entities specifically applicable to
these small businesses. The applicable definition of small entity is
the definition under the SBA rules for radiotelephone (wireless)
communications. \142\
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\142\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
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46. 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 and conclusions in this FRFA, we estimate that
there may be at least 712,000 potential licensees which are
individuals or are small entities, as that term is defined by the
SBA. We estimate that only 16,800 will be subject to FY 2001
regulatory |
