[Federal Register Volume 60, Number 125 (Thursday, June 29, 1995)]
[Rules and Regulations]
[Pages 34004-34035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15827]




[[Page 34003]]

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Part IV





Federal Communications Commission





_______________________________________________________________________



47 CFR Part 1



Assessment and Collection of Regulatory Fees for Fiscal Year 1995; 
Final Rule

  Federal Register / Vol. 60, No. 125 / Thursday, June 29, 1995 / Rules 
and Regulations  

[[Page 34004]]


FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 95-3; FCC 95-227]


Assessment and Collection of Regulatory Fees for Fiscal Year 1995

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The commission has revised its Schedule of Regulatory Fees in 
order to recover the amount of regulatory fees that Congress has 
required it to collect for fiscal year 1995. Section 9 of the 
Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees. For fiscal year 1995 
sections 9(b) (2) and (3) provide for annual ``Mandatory Adjustments'' 
and ``Permitted Amendments'' to the Schedule of Regulatory Fees. These 
revisions will further the National Performance Review goals of 
reinventing Government by requiring beneficiaries of Commission 
services to pay for such services.

EFFECTIVE DATE: September 18, 1995.

FOR FURTHER INFORMATION CONTACT:
Peter W. Herrick, Office of Managing Director at (202) 418-0443, or 
Terry D. Johnson, Office of Managing Director at (202) 418-0445.

SUPPLEMENTARY INFORMATION:
    In the Matter of: Assessment and Collection of Regulatory Fees 
for Fiscal Year 1995.
    Price Cap Treatment of Regulatory Fees Imposed by Section 9 of 
the Act.

Report and Order

    Adopted: June 14, 1995.

    Released: June 19, 1995.

    By the Commission.

Table of Contents

I. Introduction
II. Background
III. Discussion

A. FY 1995 Regulatory Fees

    1. General Discussion
    2. Private Radio Services
    a. Exclusive Use Services
    b. Shared Use Services
    c. Amateur Radio Vanity Call Signs
    3. Mass Media Services
    a. Commercial AM and FM Radio Stations
    b. Construction Permits--Commerical AM Radio
    c. Construction Permits--Commerical FM Radio
    d. Commercial Television Stations
    e. Commercial Television Satellite Stations
    f. Construction Permits--Commerical VHF Television Stations
    g. Construction Permits--Commerical UHF Television Stations
    h. Construction Permits--Commerical Television Satellite 
Stations
    i. Low Power Television, FM Translator and Booster Stations, TV 
Translator and Booster Stations
    j. Broadcast Auxiliary Stations
    k. International HF Broadcast (Short Wave)
    4. Cable Services
    a. Cable Television Systems
    b. Cable Antenna Relay Service
    5. Common Carrier Services
    a. Public Mobile/Cellular Radio Services
    b. Domestic Public Fixed Radio Services
    c. International Public Fixed Radio Service
    d. Earth Stations
    e. Space Stations (Geosynchronous)
    f. International Bearer Circuits
    g. Inter-exchange and Local Exchange, Competitive Access 
Providers, Resellers, and Other Service Providers

B. Procedures for Payment of Regulatory Fees

    1. Annual Payments of Standard Fees
    2. Installment Payments for Large Fees
    3. Advance Payments of Small Fees
    4. Timing of Standard Fee Calculations and Payments

C. Authority and Further Information

Appendix A--Regulatory Flexibility Analysis
Appendix B--Schedule of Regulatory Fees
Appendix C--How Full Time Equivalents (FTEs) and Fee Category Cost 
Allocations Were Calculated
Appendix D--Development of Private Radio Services Regulatory Fee
Appendix E--Development of Mass Media Services Regulatory Fees
Appendix F--Development of Cable Services Regulatory Fees
Appendix G--Development of Common Carrier Services Regulatory Fees
Appendix H--Guidelines for Regulatory Fee Categories
Appendix I--Description of FCC Activities
Appendix J--Parties filing Comments
I. Introduction

    1. The Congress, pursuant to Section 9 of the Communications Act of 
1934, as amended, has required that the Commission collect $116,400,000 
in FY 1995 to recover certain of its regulatory costs. On January 12, 
1995, the Commission released a Notice of Proposed Rule Making, In the 
Matter of Assessment and Collection of Regulatory Fees for Fiscal year 
1995, MD Docket No. 95-3, FCC 95-14 (Notice), 60 FR 3807 (1995). In the 
Notice, the Commission asked for comments on proposals to revise its 
Schedule of Regulatory Fees.\1\ The Commission now has under 
consideration a proposed Report and Order to revise its Schedule of 
Regulatory Fees. See 47 CFR 1.1152 through 1.1156.

    \1\ The pleadings and reply pleadings are listed in Appendix J.
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    2. In revising our regulatory fees, we adjusted our Regulatory Fee 
Schedule to recover $116,400,000 in regulatory costs, consistent with 
the amount that Congress has appropriated for our enforcement, policy 
and rule making, international, and user information activities for FY 
1995.\2\ 47 U.S.C. Sec. 159(a). In addition, we have amended the 
Schedule to collect regulatory fees from regulatees of services not 
included in the FY 1994 Schedule and we have modified our method of 
assessing fees for certain services. 47 U.S.C. Secs. 159(b)(1)(A), 
(b)(3). The revised Regulatory Fee Schedule is set forth in Appendix B.

    \2\ See Public Law 103-317, 108 Stat. 1724 at 1737-38 (August 
26, 1994).
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    3. For several categories of service, the regulatory fees for FY 
1995 are significantly higher than corresponding fees for FY 1994. See 
47 U.S.C. Sec. 159(g); see also Implementation of Section 9 of the 
Communications Act (FY 1994 Order), 9 FCC Rcd 5333 (1994) Petitions for 
Reconsideration Pending, 59 FR 30984 (1994). Our revised assessments 
result, for the most part, from increases in the amount that Congress 
has appropriated for Commission activities whose costs must be 
recovered through regulatory fees. As noted, the amount appropriated 
and to be recovered through regulatory fees is $116,400,000. That 
amount is 93 percent greater than the $60,400,000 that Congress 
required us to recover through regulatory fees in FY 1994. The impact 
of this increase is, however, lessened for some categories of services 
by anticipated revenues from categories of regulatees that we added to 
the Regulatory Fee Schedule and by increases in the number of payment 
units, e.g., subscribers.\3\ Similarly, for some services increases in 
the fees exceed 93% because of the reallocation of FTEs, decreases in 
the number of payment units, and modification of the methodology for 
computing fees to better reflect the benefits derived from the 
Commission's regulation.

    \3\ Payment units represent the number of individual payments 
available in a particular service to generate the required revenue 
in that service. Payment units also represent, in a different 
context, the number by which a payor must multiply the fee amount 
for a particular service in order to calculate its total fee due for 
the service. For example, ``subscribers'' is the payment unit 
applicable to Cable Television fees. The number of subscribers is 
divided into the overall Cable Television revenue requirement to 
determine the fee amount for that service, and it is also used by 
payors to determine the system's total fee liability (i.e., by 
multiplying the payment units by the fee amount to determine the 
system's total fee requirement).
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    4. In determining the individual fee amounts for FY 1995, Section 9 
of the Act requires that we first determine the number of full-time 
equivalent employees (FTEs)\4\ associated with our regulatory 
activities, and then determine the amount to be recovered from each fee 
category by estimating the number of FTEs assigned to each category. 
``Mandatory adjustments'' are then made to the Section 9 Regulatory Fee 
Schedule. An initial attempt to develop individual fees by allocating 
FTEs down to the individual fee level rather than at the grouped 
category level proved ineffective. Since we do not have a cost 
accounting system to gather appropriate data on how Commission 
employees allocate their time, estimated FTE data yielded anomalous 
results which would have required substantial ``permitted amendments'' 
to resolve obvious inequities.

[[Page 34005]]


    \4\ Full Time Equivalent (FTE) employment is the total number of 
regular straight-time hours (i.e., not including overtime or holiday 
hours) worked or to be worked by current and future employees 
divided by the number of compensable hours applicable to each fiscal 
year. See Office of Management and Budget Circular A-11, Section 
13.1, Definitions relating to employment.
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    5. Additionally, it became apparent in the fee development effort 
that the Commission's options were limited in terms of what it could do 
to make the fees more equitable and at the same time assure that the 
Commission collects the $116.4 million that Congress has required. This 
meant that we could not recommend adoption of proposals that would have 
resulted in the regulatees being unsure about the amount of their fee 
payment and the staff having no way to verify that proper payments were 
made. In addition, we had difficulty developing fees in several areas 
because the Commission does not always have accurate or complete 
information concerning the number of regulatees and/or measurement 
units essential to fee collection verification requirements. Thus, it 
became necessary in a number of instances to utilize industry estimates 
of payment volumes instead of relying on information available within 
the Commission.
    6. Finally, much of our policy and rule making efforts are expended 
in the development of new and emerging technologies and services (e.g., 
PCS, DBS, and LEOs). We found that, as a practical matter, we had to 
allocate the costs associated with these activities to existing 
licensees in other services because there was no operational systems or 
customer base on which to assess a fee for these new services. To 
alleviate the regulatory burden on existing licensees, we urge the 
Congress to allow the Commission to recoup, from amounts received from 
competitive bidding under Section 309 of the Communications Act, at 
least such amount as would otherwise be allocable as regulatory fees 
for such services.
II. Background

    7. Section 9(a) of the Act requires us to assess and collect annual 
regulatory fees to recover the costs, as determined annually by 
Congress, of our enforcement, policy and rule making, international, 
and user information activities.\5\ 47 U.S.C. 159(a). Congress 
established our Regulatory Fee Schedule for FY 1995. 47 U.S.C. 
Sec. 9(g). In our FY 1994 Report and Order, 59 FR 30984 (1994), we set 
forth the Regulatory Fee Schedule for FY 1994 and prescribed rules to 
govern payment of the fees, as required by Congress.\6\ 47 U.S.C. 
Sec. 159(f)(1); 47 CFR 1.1151-1.1166.

    \5\ Our various activities, including those whose costs are 
subject to recovery through regulatory fees, are described in 
Appendix I.
    \6\ In the FY 1994 Order, we adopted rules to implement the 
collection of regulatory fees, including payment procedures, 
specific exemptions from the payment of regulatory fees, procedures 
for requesting waivers, reductions and deferments of fee payments, 
and penalties for late payment or non-payment of the fees. We shall 
in the near future address petitions for reconsideration of the FY 
1994 Order and consider whether to make amendments to our 
implementing rules.
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    8. For fiscal years after FY 1994, Section 9 requires that we 
adjust the fees so that we can reasonably expect to collect the amount 
specified by Congress. 47 U.S.C. Sec. 159(b)(1)(B). Sections 9(b) (2) 
and (3) provide for annual ``Mandatory Adjustments'' and ``Permitted 
Amendments'' to the Schedule of Regulatory Fees.
    9. In making Section 9(b)(2)'s mandatory adjustments, we first 
consider the amount that we are to collect as set forth in our 
Appropriations Act. 47 U.S.C. Secs. 159(b)(2), (b)(1)(B). Second, we 
identify the number of FTEs allocated to our enforcement, policy and 
rule making, user information, and international activities. 47 U.S.C. 
Sec. 159(b)(1)(A). 159(b)(1)(A). Third, we determine the amount to be 
recovered from each fee category, e.g., Common Carrier, by estimating 
the number of FTEs assigned to each fee category. 47 U.S.C. 
Sec. 159(b)(2). Finally, we make proportionate adjustments to the 
individual fees set forth in Section 9(g)'s Regulatory Fee Schedule in 
order to determine the revised fee for the particular services within 
each service category for FY 1995. Id. In determining individual 
service fees, we take into consideration the estimated number of 
payment units, e.g., licensees, for each service. 47 U.S.C. 
Sec. (b)(2)(A).
    10. Once we have determined each service's ``mandatory fee,'' as 
described above, Section 9(b)(3), relating to ``Permitted Amendments'' 
to the Schedule, provides that, if necessary, we shall amend the 
Schedule of Regulatory Fees, as provided in Section 9(b)(1)(A) to, 
inter alia, reflect the benefits of our regulation to the payers of the 
fees for each service by considering factors that we determine are 
necessary in the public interest. 47 U.S.C. Secs. 159(b)(3), (b)(1)(A). 
In making these amendments, we ``shall add, delete, or reclassify 
services in the Schedule to reflect additions, deletions or changes in 
the nature of its services * * *.'' 47 U.S.C. Sec. 159(b)(3). Finally, 
while the fees are not judicially reviewable, we are required to notify 
Congress of any permitted amendments to the Regulatory Fee Schedule 90 
days before those amendments become effective. 47 U.S.C. 
Sec. 159(b)(2), (3), (4)(B).

III. Discussion

A. FY 1995 Regulatory Fees

1. General Discussion
    11. In adjusting our regulatory fees pursuant to Section 9(b)(2)'s 
provisions for ``Mandatory Adjustments'', we first identified our 
directly assigned FY 1995 regulatory fee FTEs in the Wireless, 
International, Mass Media, Common Carrier and Cable Services Bureaus. 
We next allocated these regulatory fee FTEs to the appropriate Section 
9 regulatory fee category (i.e. Private Radio, Mass Media, Cable 
Services, and Common Carrier). We then identified additional FTEs from 
bureaus and offices supporting the regulatory fee activities of the 
operating bureaus.\7\

    \7\ The Compliance and Information Bureau (CIB) (formerly the 
Field Operations Bureau), the Office of Engineering and Technology 
(OET), and the Office of Managing Director (OMD) perform activities 
supporting the operating Bureaus. FTEs assigned to CIB, OET and some 
elements of OMD supporting the regulatory activities of the 
operating Bureaus were allocated to the Private Radio, Mass Media, 
Common Carrier, and Cable Services fee categories on a pro rata 
basis.
    Appendix C contains a more detailed description of our allocation 
of FTEs by activity. The resulting allocation of FTEs, rounded to the 
nearest tenth of a percent, is as follows:

                                                                                                                

[[Page 34006]]
------------------------------------------------------------------------
                                                 Regulatory   Percentage
     Regulatory fee category        Regulatory      fee        of total 
                                     fee FTEs    percentage    FCC FTEs 
------------------------------------------------------------------------
Private Radio....................          103          7.3          4.5
Mass Media.......................          253         18.0         11.1
Common Carrier...................          689         49.0         30.3
Cable Services...................          361         25.7         15.9
                                  --------------------------------------
    Total........................        1,406        100.0         61.9
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    12. Next, we allocated our $116,400,000 revenue requirement to the 
Private Radio, Mass Media, Common Carrier, and Cable Services 
activities, based on the regulatory fee percentages shown above. For 
example, to derive the amount to be recovered from cable services, we 
calculated that the 25.7 percent of total FTEs representing the 361 
FTEs assigned to the cable services activity resulted in $29,914,800 to 
be recovered through the collection of cable services fees. The 
resulting allocation of costs, rounded to tenths of a million, by 
regulatory fee category, is as follows:

------------------------------------------------------------------------
                                                                 Cost   
                   Regulatory fee category                    allocation
                                                               (million)
------------------------------------------------------------------------
Private Radio...............................................        $8.5
Mass Media..................................................        21.0
Common Carrier..............................................        57.0
Cable Services..............................................        29.9
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    13. After determining these cost allocations, we updated the number 
of FY 1995 payment units for the individual services within each fee 
category. For example, we estimate that there are approximately 
60,000,000 payment units for cable television systems, i.e., cable 
subscribers. The number of payment units is based upon information 
provided by Commission program experts and supplemented by information 
contained in actual licensee data bases maintained by the Commission, 
information provided by industry groups or contained in trade 
publications, actual data from FY 1994 regulatory fee collections, and 
from data provided in the comments in this proceeding.\8\ See 
Appendices D through G.

    \8\ We have made a number of changes to our payment unit 
estimates. The revised estimates are provided in each Section 
pertinent to individual fees beginning at paragraph 27 and are also 
contained in Appendixes D through G. In applying the pro-rata 
formula for determining individual fee amounts within each fee 
category, revised payment units have the effect of raising or 
lowering the allocated costs (revenue requirements) for individual 
services, as well as, the calculated fees for all fees in a category 
depending on whether the payment unit volumes increased or decreased 
from those shown in the NPRM.
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    14. Next, in order to make the proportionate changes in the 
statutory schedule of fees required by Section 9(b)(2), we compared our 
FY 1995 revenue requirement in each regulatory fee category, e.g., 
Cable Services, with the total amount that would be collected from all 
of the services within each category under the FY 1994 fee schedule. 
For example, we estimated that approximately $22.7 million, or $7.2 
million less than its $29.9 million FY 1995 revenue requirement, would 
be collected from cable system payers based upon our FY 1994 fees. 
Therefore, we pro-rated the $7.2 million shortfall to the individual 
services within the cable services fee category (i.e., CARS licensees 
and cable system subscribers).\9\ We then divided the revenue 
requirement in each service by the payment units to determine the 
revised amount of the individual fee. These revised fees constitute the 
``mandatory adjustments'' required by Section 9(2).

    \9\ Due to revisions to payment units, cost allocations (revenue 
requirements) may change for a particular service. In addition, cost 
allocations may change due to changes made pursuant to permitted 
amendments (see Paragraph 12).
    15. Following our determination of ``Mandatory Adjustments'', we 
reviewed each service and its associated fee assessment to determine if 
the nature of a service or the public interest warranted a fee 
adjustment pursuant to Section 9(b)(3)'s requirements for ``Permitted 
Amendments.'' Pursuant to our authority to make permitted amendments to 
the fees, we revised our method for calculating fees for local exchange 
carriers (LECs), interexchange carriers (IXCs), and other common 
carriers and certain international services. Additionally, we are 
establishing a reduced fee for satellite television stations to 
distinguish those stations from full service television stations and we 
are adding a fee requirement for licensees of FM and TV translator and 
booster stations. Also, we established a fee for one-way paging 
services separate from the fee for other common carrier mobile 
services, reduced the fee for space stations, and eliminated the fee 
for receive only earth stations. After making these permitted 
amendments, we revised the remaining fees within the affected service 
category to take into account the impact of the fee modification upon 
other services within the category.\10\

    \10\ We have not proposed regulatory fees in FY 1995 for the 
Personal Communications Service (PCS), Commercial Mobile Radio 
Service (CMRS) other than those listed here (cellular and public 
mobile), Low Earth Orbital (LEO) Satellite Service an the Direct 
Broadcasting Satellite (DBS) Service because no facilities were 
authorized on our proposed dates for calculating fees or a 
negligible number of FTEs applicable to the regulatory fee program 
are assigned to these services.
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    16. Comsat General and Comsat Video argue that their proposed fee 
increases are disproportionately high when compared to the increases 
proposed in other categories of service and within their own category 
of service, and that the increase constitutes a violation of Section 
9(b)(2)'s requirement that we make proportionate adjustments to the 
statutory fees when recalculating the fees to collect a greater or 
lesser amount than previously required by Congress. These parties 
assert that our proposed fee increases with respect to Common Carrier 
activities and, in particular, geosynchronous space stations are 
neither proportionate nor in the public interest, and, that they 
constitute illegal taxes because they do not reasonably reflect the 
true cost of regulatory service provided to these entities. See 
National Cable Television Ass'n. v. United States, 415 U.S. 336, 340 
(1974) (NCTA I). COMSAT General and Comsat Video state that a fee is 
distinguishable from a tax in that a fee is ``a payment for a special 
privilege or service rendered, and not a revenue measure.'' National 
Cable Television Ass'n. v. F.C.C., 554 F.2d 1094, 1106 (D.C. 1976). 
According to these parties, the fee must be calculated to return the 
cost of the service or benefit at a rate that reasonably reflects the 
costs of the services performed and the value conferred on the payor. 
Electronic Industries Ass'n. v. F.C.C., 554 F.2d 1109, 1117 (D.C. 
1976).
    17. In addition, the parties argue that our proposed allocation of 
FTEs to the major categories of service fails to comply with the 
requirements of 

[[Page 34007]]
Section 9. These parties contend that our proposed allocation of FTEs 
to the various major service categories violates Section 9(b)(1)(a) 
because, in their view, the Notice contains insufficient supporting 
information to permit analysis of the basis for our FTE allocations. 
Comsat General argues that a detailed accounting of the overhead and 
employees' time, based on a task code charge system, is necessary to 
justify the reasonableness of our assignment of FTEs to the common 
carrier and other categories and to the individual services within 
these categories.
    18. Also, several parties contend that the Notice fails to 
demonstrate that individual fees are ``reasonably related to the 
benefits provided to the payor of the fee,'' in violation of Section 
9(b)(1)(A), and are contrary to the intent of Congress as reflected in 
the legislative history of Section 9. They also contend that the 
regulation of their particular service does not justify the fee 
proposed for the service. GE America Communications, Inc. (GE Americom) 
states that the amount of cost recovery that we allocated to 
geosynchronous satellites should be reduced because our regulatory 
activities with respect to in-orbit domestic satellites are de minimis 
since their licensees are not the subject of enforcement proceedings, 
our domestic satellite policies are well-established with little need 
for rule makings, and our deregulatory policies have further reduced 
the cost of space segment regulation.
    19. We reject Comsat General and Comsat Video's arguments that our 
proposed fees constitute unauthorized taxes. In reviewing a similar fee 
program enacted by Congress, the Supreme Court held that NCTA I stood 
only for the proposition that Congress must indicate clearly its 
intention to delegate ``discretionary authority to recover 
administrative costs not inuring directly to the benefit of regulated 
parties by imposing additional financial burdens, whether characterized 
as `fees' or `taxes' on those parties.'' Skinner v. Mid-American Pipe 
Line Co., 490 U.S. 212, 224; 109 S.Ct. 1762, 1733 (1989).\11\ Skinner 
thus bars any interpretation of NCTA I and its progeny in the courts of 
appeals that would limit Congress to allowing agencies to set 
regulatory fees only in amounts that reflect services received by the 
regulated entities. Skinner also stated that a congressional delegation 
of authority to raise funds was proper where Congress provides 
sufficient guidance to the collecting agency concerning the identity of 
the entities subject to the fee, the purposes for which the funds may 
be used, the manner in which the fees are to be established, and the 
aggregate amount of the fees to be collected. 490 U.S. 219-220, 109 S. 
Ct. 1731.

    \11\ Skinner stated that in NCTA I, the Court had expressed 
doubt whether Congress had intended in the particular statute in 
question to delegate the authority to recover the costs of benefits 
to the public by assessing fees on regulated parties. For that 
reason, it struck down the agency's efforts to recover such costs. 
490 U.S. at 223-224; 109 S.Ct. at 1733.
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    20. Subsequent to the Court's decision in Skinner, Congress adopted 
Section 9 directing us to recover the full amount of specified 
regulatory costs from regulatees. Consistent with the guidance in 
Skinner, Congress identified the categories of service providers 
subject to the fees, and declared that fees are to be assessed in a 
rule making proceeding, based upon the number of FTEs within our 
bureaus and offices performing enforcement, policy and rule making, 
international, and user information activities. Section 9 further 
requires us to take into account factors reasonably related to the 
benefits provided to the payor of the fee by these activities, and we 
are to recover the costs of these activities only if required in annual 
Appropriations Acts and only in the aggregate amount annually 
designated by Congress. As described below, our actions to revise the 
regulatory fees are consistent with the requirements of Section 9. 
Thus, our revisions to the Regulatory Fee Schedule in establishing 
regulatory fees for FY 1995 satisfy the Court's concerns and guidelines 
regarding unauthorized taxation of persons subject to a fee 
requirement.
    21. The FTE allocations used to calculate the amounts to be 
recovered from each fee category were developed in full compliance with 
the requirements of Section 9 of the Act. In developing the FY 1995 
regulatory fee schedule, we relied upon estimates of year-end FTEs from 
our Bureaus and Offices, because actual FTEs utilized are not known 
until the completion of the fiscal year. Thus, to produce the best 
possible estimates of FY 1995 year-end FTEs, we conducted a survey in 
December 1994, immediately prior to releasing the Notice in this 
proceeding to estimate FTEs for this rule making.\12\ The Commission 
performed a review of its staffing, taking into consideration expected 
new and replacement hiring and attrition through the end of the fiscal 
year, in order to determine the most accurate estimate of projected FY 
1995 year-end FTEs by organization. Next, the Bureaus and Offices 
allocated their assigned year-end FTEs to each of their major 
functional activities (e.g., Authorization of Service, Enforcement, 
Public Information). The staff actually assigned to perform these 
allocations within the Bureau and Offices were those individuals most 
familiar with the regulatory programs and associated staffing under 
their auspices.\13\

    \12\ When the survey was conducted, in December 1994, only 
approximately 20% of the total FTEs expected to be utilized for the 
entire FY 1995 time frame were actually ``accrued''. As such, 
approximately 80% or 1,125 of the 1,406 FTEs for FY 1995 were 
estimated based on this small 20% ``sample''.
    \13\ Congress recognized, in adopting the Schedule of Fees, that 
the Commission has no cost accounting system in place to assist in 
the estimation of final fiscal year FTEs and related costs. Public 
Law 103-66, 107 Stat. 313 at 401 (1993). Although the Commission is 
developing a cost accounting system and it should be in place for FY 
1996, such a system would not provide a definitive count, but only 
an estimate of year-end FTEs even when fully implemented. In 
summary, we believe that the estimates of FTEs and costs utilized in 
this proceeding are reasonable and represent the most accurate 
information available. We have provided in Appendix C an explanation 
of how FTEs were calculated for each fee category.
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    22. In contending that their proposed fees are unduly high, 
commenters generally have failed to recognize that Section 9 requires 
that we add to our direct FTEs, i.e., those represented by staff 
directly assigned to our operating Bureaus, any support FTEs 
representing staff assigned to overhead functions such as our field and 
laboratory staff and certain staff assigned to the Office of Managing 
Director. 47 U.S.C. Sec. 159(b)(1)(A). These support FTEs comprise 
nearly 40% of all FTEs associated with regulatory fees. Therefore, 
personnel costs to be recovered through regulatory fees are 
approximately 40% higher than the costs associated with staff directly 
assigned to an operating Bureau and performing functions covered by the 
regulatory fee program. Further, personnel costs represent only 75% of 
our costs to be recovered through regulatory fees. Thus, the addition 
of non-personnel costs (equipment, rents, contractual services, 
supplies, etc.) to personnel costs results in an actual cost of 
regulation significantly exceeding direct staff costs. The addition of 
benefits and other obligations to the average Commission salary cost 
results in an addition cost of approximately $33,000 per employee. 
Although some of the parties view these costs of regulation to be 
excessive, they often reflect costs associated with our regulatory 
programs that they may not have fully considered.
    23. Support FTEs, and ultimately costs, are allocated to each 
regulatory fee category (e.g., cable television) based upon the number 
of direct FTEs assigned to each fee category. We 

[[Page 34008]]
believe our allocations of FTEs reasonably assign personnel and related 
costs attributable to each fee category. As noted, actual FTE 
assignments can only be determined once a fiscal year is completed. 
However, we are satisfied that our estimates, based upon careful review 
of current and anticipated FTE assignments conducted well into the 
fiscal year and shortly before the adoption of the Notice in this 
proceeding, yield an accurate estimate of FY 1995 FTE assignments.
    24. We also note the concerns of several commenters that certain 
individual fees seem unreasonable relative to the benefits provided. In 
general, these commenters fail to recognize the formulaic approach to 
setting the mandatory fee levels dictated by Congress. Section 9 
provides that, in setting individual fee amounts, we prorate increases 
or decreases to the individual services within each fee category. 47 
U.S.C. Sec. 159(b)(2). This statutory requirement remains the 
relationship between annually calculated fees and the fees initially 
established by the Congress. It does not provide the flexibility to 
adjust fees relative to benefits to the payor or in consideration of 
other factors. These factors, however, are considered in the next stage 
of the fee development process as permitted amendments, if warranted.
    25. As discussed earlier, the Commission is not able to allocate 
detailed costs to individual fee line items (e.g., VHF Television 
Stations in the 51-100 markets). Rather, those costs are allocated to 
broad categories of services by Section 9. Even when the Commission 
implements a cost accounting system in FY 1996, it may not be cost 
effective to obtain detailed cost data relative to our regulation of 
individual services. Since we do not relate specific regulatory costs 
to particular services within a fee category, we are constrained by 
Section 9 and by our information collection systems to the formulaic 
approach to the mandatory adjustment of regulatory fees. However, any 
inequities resulting from this approach are likely to be small and 
confined to like services due to the pro-rata formula applied by fee 
category. As noted, in developing the individual fees, as discussed 
below, we have carefully examined any apparent inequities computed 
pursuant to the mandatory formula required by Section 9 and have 
adjusted certain fees pursuant to our authority to make ``permitted'' 
amendments to the fees. In making the permitted amendments, the 
Commission is not required to calibrate the amount of the regulatory 
fee collected precisely to the cost of the benefits each regulatee 
derives from the Commission's regulation. See United States v. Sperry 
Corp., 493 U.S. 52, 60 (1989) (upholding a one and a half percent user 
fee of amount recovered by claimant before Iran-U.S. Claims Tribunal); 
Massachusetts v. United States 435 U.S. 444, 463 (1978) (upholding flat 
registration fee on civil aircraft). Moreover, the Commission can 
collect fees from regulatees for their use of frequencies and for the 
potential benefits of its regulatory activities, even if they do not 
utilize these activities. See United States v. Sperry Corp., 493 U.S. 
supra at 63.
    26. Also, many commenters have mistakenly correlated gross 
increases in fee amounts from FY 1994 to FY 1995 to increases in 
regulation. Although there may, in fact, be changes in regulatory 
burden for certain services, the primary reason for increased fees 
overall is the 93% increase in recoverable fees mandated by Congress. 
Additionally, Section 9 prohibited any adjustment of individual fees 
established in the Regulatory Fee Schedule for FY 1994. 9 U.S.C. 
Sec. 159(b)(2). Thus, the FY 1994 fee was established by Congress and 
was not adjusted to reflect changes in the allocation of FTEs not 
considered by Congress. Our development of FY 1995 fees in accordance 
with Section 9's requirements represents the first allocation of FTEs 
to appropriate fee categories. This has resulted in a realignment of 
costs between major fee categories and a redistribution of relative fee 
revenue requirements among the four major fee categories. As the 
commenters have noted, certain fees decrease from FY 1994 levels while 
other fees increase. This primarily reflects the reallocation of FTEs 
for FY 1995 compared to the Congressionally mandated Regulatory Fee 
Schedule in effect in FY 1994.
    27. We have retained, for fee determination purposes, the 
regulatory fee category classifications (i.e., Private Radio, Common 
Carrier, Cable Services and Mass Media) set forth in Section 159 in 
order to minimize any adverse impact on the fees resulting from changes 
in classification. Further, for ease in locating particular fees, we 
have formatted the FY 1995 Schedule of Fees to reflect our new 
organizational structure even though we have developed those fees based 
upon the fee activities contained in the FY 1994 Regulatory Fee 
Schedule. See Appendix B. With the exception of annual fees in the 
amount of $5.00 or less, individual fee amounts have been rounded to 
the nearest $5 in the case of fees under $1,000, or to the nearest $25 
in the case of fees of $1,000 or more in accordance with Section 
9(b)(2). Appendices C through G describe the method by which FTEs were 
assigned to the fee categories and the development of the individual 
fees within each major category.
    28. We have revised the revenue requirements for individual fees in 
several of the fee categories. Revenue requirements change whenever 
volume estimates change due to the pro-rata formula associated with the 
mandatory provisions of Section 9. Likewise, any permitted amendments 
which reduce fees have the effect of reallocating to other services 
within a fee category the revenues which would have been collected if 
the permitted amendment had not been accepted. In effect, each volume 
change and/or permitted amendment impacts the revenue requirement in 
each service within the category. Zero-basing each revenue calculation 
makes any attempt to explain the calculated difference between revenue 
requirements shown in the Notice and in this Report and Order 
meaningless. We, therefore, have not attempted to do this and instead, 
have explained each permitted amendment we've made and also described 
the source of any changes to volume estimates.
2. Private Radio Services.
    29. In developing the FY 1995 regulatory fees for Private Radio 
Services (set forth in the Wireless Radio Services category in the FY 
1995 Regulatory Fee Schedule), we made mandatory adjustments to the 
Regulatory Fee Schedule required by 47 U.S.C. Sec. 159, considering the 
number of FTEs and the estimated volume of payments. We have also taken 
into account the quality of the frequencies licensed. Accordingly, we 
have decided to continue to assess the two levels of regulatory fees 
applied to these services by Congress' fee schedule, i.e., exclusive 
use services and shared use services, in recognition that those 
licensees who generally receive a higher quality communications 
channel, due to exclusive or lightly shared frequencies, should pay a 
higher fee than licensees who operate on heavily shared frequencies. 47 
U.S.C. Sec. 159(2).
    30. We are implementing no changes to the rules for calculating fee 
payments and submitting regulatory fee payments for Private Radio 
Services. Due to the relatively small regulatory fees generally 
assessed for the services, we will continue to require applicants for 
new, reinstatement, and renewal licenses in these services to pay the 
entire 

[[Page 34009]]
regulatory fee for the full term of their requested license at the time 
they file their license applications.\14\ See Appendix D for a 
description of the development of the fees for the various services 
within the Private Radio category.

    \14\ In the event that the subject application is not granted, 
the entire regulatory fee submitted will be returned upon request of 
the payor of the fee. See 47 CFR 1.1159(a)(2)(iii).
---------------------------------------------------------------------------

    a. Exclusive use services. 31. Land Mobile Services. The fees for 
Land Mobile Services are set forth in the FY 1995 Regulatory Fee 
Schedule within the Wireless Radio Service category and include 
services authorized under Part 90 of the Commission's Rules to provide 
high quality voice or digital communications between vehicles or to 
fixed stations to further the business activities of the licensee. 
These services, using the 220-222 MHz band and frequencies at 470 MHz 
and above, may be offered on a private carrier basis in the Specialized 
Mobile Radio Service (SMRS).
    32. The FY 1995 revenue requirement for Land Mobile Services is 
$396,390. Our estimated payment units for Land Mobile are 13,213 units. 
Dividing the revenue requirement by the number of payment units and its 
license term of five years results in an annual fee of $6 per license 
rather than the $7 annual fee proposed in the Notice.\15\ Thus, Land 
Mobile licensees are subject to a $6 annual regulatory fee per license, 
payable for an entire five or ten year license term at the time of 
application for a new, renewal, or reinstatement license. The total 
regulatory fee due is $30 for a license with a five year term or $60 
for a license with a 10 year term. See Guidelines, Appendix H at para. 
4.

    \15\ Although this fee category includes licenses with ten year 
terms, the estimated volume of ten year license applications is less 
than one tenth of one percent and, therefore, is statistically 
insignificant.
---------------------------------------------------------------------------

    33. Microwave Services. The fees for Microwave Services are set 
forth in the FY 1995 Regulatory Fee Schedule within the Wireless Radio 
Service category. Microwave Services include private microwave systems 
and private carrier systems authorized under Part 94 of the 
Commission's Rules to provide telecommunications services between fixed 
points on a high quality channel of communications. Microwave systems 
are often used to relay data and to control railroad, pipeline, and 
utility equipment.
    34. The FY 1995 revenue requirement for Microwave Services is 
$193,200. Payment units for Microwave Services are estimated to be 
6,440 licensees. Dividing the revenue requirement for Microwave 
Services by its payment units and license term of five years results in 
an annual fee of $6 per license. Thus, Microwave licensees are subject 
to a $6 annual regulatory fee per license, rather than the $7 annual 
fee proposed in the Notice, payable for an entire five year license 
term at the time of application for a new, reinstatement or renewal 
license. The total regulatory fee due is $30 for the five year license 
term. See Guidelines, Appendix H at para. 6.
    35. Interactive Video Data Service (IVDS). The fees for IVDS are 
set forth in the FY 1995 Regulatory Fee Schedule within the Wireless 
Radio service category. IVDS is a two-way point-to-multi-point radio 
service allocated high quality channels of communications and 
authorized under Part 95 of the Commission's Rules. IVDS provides 
information, products and services, and also the capability to obtain 
responses from subscribers in a specific service area. IVDS is offered 
on a private carrier basis.
    36. The FY 1995 revenue requirement for IVDS is $43,500. Payment 
units for IVDS are estimated to be 1,450 licenses. Dividing the revenue 
requirement of IVDS by its payment units and license term of five years 
results in an annual fee of $6 per license rather than the $7 fee we 
proposed in the Notice. Thus, IVDS licensees are subject to a $6 annual 
regulatory fee per license, payable for an entire five year license 
term at the time of application for a new, reinstatement or renewal 
license. The total regulatory fee due is $30 for the five year term of 
the license. See Guidelines, Appendix H at para. 7.
    b. Shared use services. 37. Marine (Ship) Service. Fees for marine 
(Ship) Service are set forth in the FY 1995 Regulatory Fee Schedule for 
the Wireless Radio Service category. Marine (Ship) Service is a 
shipboard radio service authorized under Part 80 of the Commission's 
Rules to provide telecommunications between watercraft or between 
watercraft and shore-based stations. Radio installations are required 
by domestic and international law for large passenger or cargo vessels. 
Radio equipment may be voluntarily installed on smaller vessels, such 
as recreational boats.
    38. The FY 1995 revenue requirement for the Marine (Ship) Service 
fee category is $5,070,420. Payment units are estimated to be 169,014 
stations. Dividing the revenue requirement of the Marine (Ship) Service 
by its payment units and license term of ten years results in an annual 
fee of $3 per station. Thus, as proposed in the Notice, Marine (Ship) 
Station licensees are subject to a $3 annual regulatory fee per 
station, payable for an entire ten year license term at the time of 
application for a new, reinstatement or renewal license. The total 
regulatory fee due is $30 for the ten year license term. See 
Guidelines, Appendix H at para.8.
    39. Marine (Coast) Service. Fees for Marine (Coast) Service are set 
forth in the FY 1995 Regulatory Fee Schedule for the Wireless Radio 
service category. Marine (Coast) Service stations are land-based 
stations in the maritime services, authorized under Part 80 of the 
Commission's Rules, to provide communications services to ships and 
other watercraft in coastal and inland waterways.
    40. The FY 1995 revenue requirement for this service is $41,955 and 
the estimated payment units are 2,797 licenses. Dividing the revenue 
requirement of the Marine (Coast) Service by its payment units and 
license term of five years results in an annual fee of $3 per license. 
Thus, as proposed in the Notice, Marine (Coast) licensees are subject 
to a $3 annual regulatory fee per call sign, payable for the entire 
five year license term at the time of application for a new, 
reinstatement or renewal license. The total regulatory fee due is $15 
per call sign for the five year license term. See Guidelines, Appendix 
H at para. 9.
    41. Private Land Mobile (Other) Services.  Fees for Private Land 
Mobile (Other) Services are set forth in the FY 1995 Regulatory Fee 
Schedule for the Wireless Radio Service category. Private Land Mobile 
Radio Services are authorized under Parts 90 and 95 of the Commission's 
Rules. Stations in this category provide one or two way communications 
between vehicles, persons or to fixed stations on a shared basis and 
include radiolocation services, private carrier paging services, 
industrial radio services and land transportation radio services.
    42. The FY 1995 revenue requirement for Private Land Mobile (Other) 
Services is $1,396,275. Payment units are estimated to be 93,085 
licenses. Dividing the revenue requirement of these services by their 
payment units and license term of five years results in an annual fee 
of $3 per license. Thus, as proposed in the Notice, licensees of these 
services are subject to a $3 annual regulatory fee per call sign, 
payable for an entire five year license term at the time of application 
for a new, reinstatement or renewal license. The total regulatory fee 
is $15 for the five year license term. See Guidelines, Appendix H at 
para. 10.
    43. Aviation (Aircraft) Service. The fee for Aviation (Aircraft) 
Service is set 

[[Page 34010]]
forth in the FY 1995 Regulatory Fee Schedule for the Wireless Radio 
service category. Aviation (Aircraft) stations are authorized to 
provide communications between aircraft and from aircraft to ground 
stations. The service includes frequencies used to communicate with air 
traffic control facilities pursuant to Part 87 of the Commission's 
Rules.
    44. The FY 1995 revenue requirement for the Aviation (Aircraft) 
Service is $1,130,430. The payment units are estimated to be 37,681 
licenses. Dividing the revenue requirement of the Aviation (Aircraft) 
Service by its payment units and license term of ten years results in 
an annual fee of $3 per station, as proposed in the Notice. Thus, 
licensees of aircraft stations are subject to a $3 annual regulatory 
fee per station, payable for the entire ten year license term at the 
time of application for a new, reinstatement or renewal license. The 
total regulatory fee due is $30 per station for the ten year license 
term. See Guidelines, Appendix H at para. 11.
    45. Aviation (Ground) Service. Fees for Aviation (Ground) Service 
are set forth in the FY 1995 Regulatory Fee Schedule for the Wireless 
Radio service category. Aviation (Ground) Service stations provide 
ground-based communications to aircraft for weather or landing 
information, or for logistical support pursuant to Part 87 of the 
Commission's Rules.
    46. The FY 1995 revenue requirement for the Aviation (Ground) 
Service is $39,900. Payment units for the Aviation (Ground) Service are 
estimated to be 2,660 licenses. Dividing the Service's revenue 
requirement by its payment units and license term of five years results 
in an annual fee of $3 per license. Thus, as proposed in the Notice, 
licensees of Aviation Ground stations are subject to a $3 annual 
regulatory fee per call sign, payable for the entire five year license 
term at the time of application for a new, reinstatement or renewal 
license. The total regulatory fee due is $15 per call sign for the five 
year license term. See Guidelines, Appendix H at para. 12.
    47. General Mobile Radio Service (GMRS). Fees for the GMRS are set 
forth in the FY 1995 Regulatory Fee Schedule within the Wireless Radio 
service category. GMSR licensees provide personal and limited business 
communications between vehicles or to fixed stations for short-range, 
two-way communications pursuant to Part 95 of the Commission's Rules.
    48. The FY 1995 revenue requirement for GMRS is $41,775. Payment 
units for GMRS are estimated to be 2,785 licenses. Dividing GMRS' 
revenue requirement by its payment units and license term of five years 
results in an annual fee of $3 per license. Thus, as proposed in the 
Notice, GMRS licensees are subject to a $3 annual regulatory fee per 
license, payable for an entire five year license term at the time of 
application for a new, reinstatement or renewal license. The total 
regulatory fee due is $15 per license for the five year license term. 
See Guidelines, Appendix H at para. 13.
    c. Amateur vanity call signs. 49. Fees for Amateur Vanity Call 
signs are set forth in the FY 1995 Regulatory Fee Schedule within the 
Wireless Radio service category. The fee covers voluntary requests for 
specific call signs in the Amateur Radio Service. We have concluded our 
rule making proceeding related to the authorization of vanity call 
signs. See Report and Order in PR Docket No. 93-305, 10 FCC Rcd 1039 
(1995), 59 FR 558 (1994). Therefore, amateur radio operators are 
required to submit a regulatory fee payment with their vanity call sign 
application in FY 1995.
    50. The revenue requirement for vanity call signs is $840,000. We 
have revised our estimated payment units to 28,000 vanity call sign 
applications, as a result of further analysis by the Wireless 
Telecommunications Bureau. Dividing the service's revenue requirement 
by its estimated payment units and license term of ten years results in 
a fee of $3 per year per license as proposed in the Notice. Thus, 
holders of amateur vanity call signs are subject to a $3 annual 
regulatory fee per call sign, payable for an entire ten year license 
term at the time of application for a vanity call sign. The total 
regulatory fee is $30 per license for the ten year license term.\16\ 
See Guidelines, Appendix H at para. 14.

    \16\ Section 9(h) exempts ``amateur radio operator licenses 
under part 97 of the Commission's Rules (47 C.F.R. Part 97)'' from 
the requirement to pay an annual regulatory fee. However, Section 
9(g)'s Regulatory Fee Schedule explicitly includes ``Amateur Vanity 
Call Signs'' as a category subject to the payment of a regulatory 
fee.
---------------------------------------------------------------------------

3. Mass Media
    51. The regulatory fees for the Mass Media fee category apply to 
broadcast licensees and permittees in the television, AM and FM 
services and in several auxiliary services. We have incorporated 
changes in payment volume estimates for satellite television stations, 
auxiliary radio licenses, and translator stations. The payment volumes 
were adjusted after further review of the Commission's licensing data. 
See Appendix E for a description of the development of the fees for 
services within the Mass Media category; see also Guidelines, Appendix 
H at Paras. 15-26.
    a. Commercial AM and FM radio. 52. These categories include 
licensed commercial AM (Classes A, B, C, and D) and FM (Classes A, B, 
B1, C, C1, C2, and C3) radio stations operating under Part 73 of the 
Commission's Rules. In developing our proposed FY 1995 fees for AM and 
FM stations, we determined that the public interest requires that we 
retain the operational class distinctions among AM and FM stations that 
Congress established in its Regulatory Fee Schedule. 47 U.S.C. 
Sec. 159. Also, as a permitted amendment, we proposed a further 
distinction to recognize that the population density of a station's 
geographic coverage is a public interest factor warranting recognition 
in the fee schedule. We proposed to distinguish stations located in 
Arbitron radio markets vis-a-vis those not located in these markets and 
to allocate the fee burden utilizing a fee ratio between the Arbitron 
and non-Arbitron markets similar to the ratio of the fee requirement 
established for larger television station markets and ``remaining 
markets'' set forth in the Regulatory Fee Schedule. We proposed no 
change to the rules for calculating and submitting regulatory fees by 
AM and FM radio station licensees.
    53. Several commenters contend that Arbitron rankings are not 
useful for establishing the AM and FM fee structure. These parties 
state that markets are only ranked if a sufficient number of stations 
located within the market subscribe to the Arbitron service. Also, a 
station may be placed in a market if it competes with market stations 
even though the station may not be physically located in a major 
metropolitan area within the market. The National Association of 
Broadcasters (NAB) also argues that a station may be placed in an 
Arbitron market based on promotional programming during the rating 
period and recommends that a licensee be allowed to show that its 
placement in an Arbitron market is not representative of its service. 
Washington Broadcasting Company argues that stations 20 kilometers from 
the principal city in a market or serving less than 20 percent of the 
population of a market should not be considered as an Arbitron Market 
station. A number of licensees argue that fees should be based on a 
graduated scale by market size, differentiating between markets 1-10; 
11-25; 25-50; 51-100; and remaining markets in a manner similar to that 
in the Regulatory Fee Schedule for television stations. Broadcast 
Market Associates and James Wagner recommend the fees be based on 

[[Page 34011]]
the population a station serves. Montana Broadcasters Association 
argues that fees should be based on gross revenues. In contrast, Radio 
840, Inc. argues that all stations in the same class be assessed the 
same fee without distinction as to market size.
    54. We agree with commenters that our proposal to base fees on 
whether a licensee is ranked in an Arbitron market is flawed. The 
Arbitron rankings data is incomplete for fee determination purposes, 
and reliance upon it does not provide a sufficiently accurate and 
equitable methodology for determining fees. we attempted, within the 
limitations of available data, to compute fees on a graduated scale by 
market size. The results produced unexpected inequities that not only 
raised the fees significantly for markets 1-10 and 11-25, but also 
raised the fees at the low end for remaining markets. Moreover, the 
Commission's data bases do not contain population and gross revenue 
data from which we could compute fees. Therefore, we have decided not 
to implement the proposed fees methodology for AM and FM stations. 
Instead, for FY 1995 we will retain the fee methodology enacted by 
Congress for FY 1994.\17\ In this regard, we note that although the 
Regulatory Fee Schedule does not differentiate between markets, the AM 
and FM fees differentiate between classes of stations and are low 
enough to avoid placing an onerous burden on most licensees. Thus, the 
regulatory fees for AM and FM stations for FY 1995 are as follows and 
represent the mandatory adjustments to the Regulatory Fee Schedule 
consistent with Section 9 (b) (2):\18\

    \17\ Interested parties may file petitions for rule making 
setting forth a proposed AM and FM fee methodology as long as the 
proposal is supported by readily available data to be considered in 
connection with the development of the Notice of Proposed Rulemaking 
for FY 1996.
    \18\ Appendix E shows the payment volumes and cost allocations 
for assessing regulatory fees for AM and FM radio.
AM Radio

Class A
$1,120
Class B
620
Class C
250
Class D
310

FM Radio

Classes C, C1, C2, B
$1,120
Classes A, B1, C3
745

    We have made no change to the rules for calculating and submitting 
regulatory fees by AM and FM radio station licensees. See Guidelines, 
Appendix H at para. 16.
    b. Construction permits--commercial AM radio. 55. This category 
includes holders of permits to construct new AM stations under Part 73 
of the Commission's Rules. The FY 1995 revenue requirement for the 
Commercial AM Construction Permit fee category is $9,875. Payment units 
for the service are estimated to be 79 AM Construction Permits. 
Dividing the revenue requirement for AM Construction Permits by the 
estimated payment units results in a regulatory fee of $125 per 
Construction Permit. Thus, for FY 1995, we are assessing holders of 
Construction Permits for Commercial AM Stations $125 for each permit 
held. Upon issuance of an operating license, this fee would no longer 
be assessed. Instead, for the next regulatory fee period, licensees are 
required to pay the applicable fee for the designated class of the 
station. We have made no change in the rules for calculating and 
submitting the regulatory fee by AM construction permittees. See 
Guidelines, Appendix H at para. 17.
    c. Construction permits--Commercial FM radio. 56. This category 
includes holders of permits to construct new commercial FM stations 
covered under Part 73 of the Commission's Rules. The FY 1995 revenue 
requirement for Commercial FM Radio Construction Permits is $435.860. 
Our estimate of the payment units is 703 Construction Permits. Dividing 
the revenue requirement for FM Construction Permits by the estimated 
payment units results in a regulatory fee of $620 per permit. Thus, for 
FY 1995, we are assessing permittees $620 for each permit held. Upon 
issuance of an operating license, this fee would no longer be assessed. 
Instead, for the next regulatory fee period, licensees must pay a 
regulatory fee based upon the designated class of he station. We are 
making no change in the rules for calculating and submitting regulatory 
fees by FM construction permittees. See Guidelines, Appendix H at para. 
18.
    d. Commercial television stations. 57. This category includes 
licensed Commercial VHF and UHF Television Stations covered under Part 
73 of the Commission's Rules, except Television Satellite, Translator, 
and Low Power Stations, addressed separately below. We are assessing 
Commercial Television Stations annual fees based on a station's market 
rankings as published by Warren Publishing in the 1994 Edition of the 
Television and Cable Factbook (No. 62). The FY 1995 revenue 
requirements for the different categories of VHF and UHF Commercial 
Television Stations are shown in Appendix E. Payments units for 
Commercial Television Stations are also shown in Appendix E. Dividing 
the revenue requirements for each Commercial Television Station 
category by the payment units for each category results in the 
following fees for Television Stations in each ADI market grouping:

VHF Markets 1-10
$22,420
VHF Markets 11-25
$19,925
VHF Markets 26-50
$14,950
VHF Markets 51-100
$9, 975
VHF Remaining Markets
$6,225

UHF Markets 1-10
$17,925
UHF Markets 11-25
$15,950
UHF Markets 26-50
$11,950
UHF Markets 51-100
$7,975
UHF Remaining Markets
$4,975

    See Guidelines, Appendix at para. 19.
    58. Several commenters argue that the Arbitron market structure is 
obsolete and should be replaced with the Nielsen Station Index. 
Further, commenters argue that the Arbitron market structure is 
disadvantageous to small non-ADI markets and the stations located on 
the fringe of larger markets. Various solutions proposed include basing 
fees on Grade B Contour coverage or percentage of audience share.
    59. We decline to consider any change in the methodology 
established by the Congress and affirmed in the FY 1994 schedule. We 
were unable to obtain sufficient information to properly evaluate the 
merits of using the Nielsen Station Index for establishing fees. The 
Commission's data bases do not contain data necessary to establish fees 
from Grade B Contour coverage or percentage of audience share. Thus, we 
will retain the Arbitron market groupings for FY 1995.
    e. Commercial television satellite stations. 60. Pursuant to our 
authority to make permissive amendments to our regulatory fees, 
Television Satellite Stations (authorized pursuant to Note 5 of Section 
73.3555 of the Commission's Rules) that retransmit programming of the 
primary station will be assessed a fee separate from the fee for fully 
operational television stations. This fee is based upon the $500 fee 
passed by the House of Representatives for Television Satellite 
Stations for FY 1994. While not legally binding, the $500 base fee was 
determined to be appropriate for licensees of Television Satellite 
Stations in our FY 1994 authorization bill passed in the House of 
Representatives. See H.R. 4522. In addition, pursuant to the 
instructions of Section 9, 47 U.S.C. Sec. 159(b)(3), a separate fee for 
Television Satellite Stations would take into account the public 
interest factors reflected in comments filed in the proceeding to adopt 
the FY 1994 Schedule of Regulatory Fees. In developing the FY 1995 fee 
for Television Satellite Stations, we use the $500 fee proposed by the 
House of 

[[Page 34012]]
Representatives for FY 1994 to calculate a FY 1995 fee for Television 
Satellite Stations. We divide a ``simulated'' FY 1994 revenue 
requirement by the estimated number of Television Satellite Station 
licensees. Our FY 1995 revenue requirement for Television Satellite 
Stations is $68,200. Following release of our Notice, we revised our 
estimate of payment units to 110 licensed Television Satellite Stations 
based on an updated analysis of these stations. Therefore, we are 
exercising our authority to make permitted amendments to the Regulatory 
Fee Schedule to establish a Television Satellite fee of $620 per 
station. We caution that only those stations designated as Television 
Satellite Stations in the 1994 Edition of the Television and Cable 
Factbook (No. 62) are eligible to submit the fee applicable to 
Television Satellite Stations. Full-service television licensees are 
subject to the regulatory fee payment required for their class of 
station and market.\19\ See Guidelines, Appendix H at para. 20.

    \19\ We recognize that an ongoing rule making proceeding is 
addressing whether Television Satellite Stations should continue to 
be exempt from the Commission's national television ownership 
restrictions. Our decision to assess a regulatory fee for Television 
Satellite Stations that is less than the amount for Commercial 
Television Stations should not be taken as a signal that any 
determination has been made with regard to the outcome of that 
proceeding.
---------------------------------------------------------------------------

    f. Construction permits--Commercial VHF television stations. 61. 
This category includes holders of permits to construct new Commercial 
VHF Television Stations covered under Part 73 of the Commission's 
Rules. The FY 1995 revenue requirement for this service category is 
$54,725. The number of permits is 11. Dividing the revenue requirement 
for VHF Television Construction Permits by its payment units results in 
a fee of $4,975. Therefore, for FY 1995, we are assessing permittees 
$4,975 for each VHF Television Construction Permit held. Upon issuance 
of an operating license, this fee would no longer be assessed. Instead, 
for the next regulatory fee period, licensees must pay a fee based upon 
the designated market of the station. We are making no changes to the 
rules for calculating and submitting regulatory fees by VHF Television 
Construction Permittees. See Guidelines, Appendix H at para. 21.
    g. Construction permits--Commercial UHF television stations. 62. 
This category includes holders of permits to construct new UHF 
Television Stations covered under Part 73 of the Commission's Rules. 
The FY 1995 revenue requirement for this service category is $576,375. 
Payment units for UHF Television Construction Permits are estimated to 
be 145 permits. Dividing the revenue requirement for this service 
category by its estimated payment units results in a fee of $3,975 for 
each UHF Television Construction Permit held. Therefore, we are 
assessing a fee of $3,975 per UHF Television Construction Permit. Upon 
issuance of an operating license, this fee would no longer be assessed. 
Instead, for the next regulatory fee period, licensees must pay a fee 
based upon the designated market of the station. We are making no 
changes to the rules for calculating and submitting regulatory fees by 
UHF Television Construction Permittees. See Guidelines, Appendix H at 
para. 22.
    h. Construction permits--Satellite television stations. 63. We are 
exercising our authority to make permitted amendments to add a new 
service category to the Regulatory Fee Schedule in recognition that the 
holders of Construction Permits for UHF and VHF Television Satellite 
Stations should be charged a separate, lower fee than the fee charged 
holders of Construction Permits for fully operational Television 
Stations. See para. 56 above, where we exercised our authority to make 
permitted amendments to the Regulatory Fee Schedule relating to the fee 
for Television Satellite Stations. We developed the fee for Television 
Satellite Construction Permits by taking the average fee for VHF and 
UHF Television Stations and relating it to the average fee for 
Construction Permits for VHF and UHF Television Stations. Using this 
relationship and the revenue requirement for Television Satellite 
Stations results in a computed fee of $225 for Construction Permits for 
Television Satellite Stations. An individual regulatory fee payment is 
to be made for each Television Satellite Station Construction Permit 
held. Upon issuance of an operating license, this fee would no long be 
assessable. Instead, for the next fee period the licensee will be 
assessed the fee for an operating Television Satellite Station. See 
Guidelines, Appendix H at para. 23.
    i. Low power television, FM translator and booster stations, TV 
translator and booster stations. 64. This category includes Low Power 
UHF/VHF Television stations operating under Part 74 of the Commission's 
Rules with a transmitter power output limited to 0.01kw for a UHF 
facility and, generally, 1kw for a VHF facility. Low Power Television 
(LPTV) stations may retransmit the programs and signals of a TV 
broadcast station, originate programming, and/or operate as a 
subscription service. This category also includes translators and 
boosters operating under Part 74 that rebroadcast the signals of full 
service stations on a frequency different from the parent station 
(Translators) or on the same frequency (Boosters).
    65. We are exercising our authority to make permitted amendments to 
the Regulatory Fee Schedule to include FM Translator and Booster 
Stations because we believe these facilities were inadvertently omitted 
from the Regulatory Fee Schedule and we are unaware of any reason not 
to establish a fee for these services. The stations in this category 
are secondary to full service stations in terms of frequency priority.
    66. We have also received requests for waivers of the regulatory 
fees from operators of community based Translators. These Translators 
are generally not affiliated with commercial broadcasters, they are 
nonprofit, nonprofitable, or only marginally profitable, serve small 
rural communities, and are supported financially by the residents of 
the communities served. We are aware of the difficulties these 
Translators have in paying even minimal regulatory fees, and we will 
address those concerns in the ruling on reconsideration of the FY 1994 
Order.
    67. The revenue requirement for this service category is 
$1,210,400. Our estimated payment units is 7,120 licenses, including 
licenses covering FM translators. Dividing the revenue requirement for 
this category by its estimated payment units results in a fee of $170 
per license. Thus, for FY 1995, we assess licensees of Low Power 
Television Stations and licensees of both FM and TV Translators and 
Boosters an annual regulatory fee of $170 for each license held. We are 
making no changes to the rules for calculating and submitting 
regulatory fee payments by licensees in this service category. See 
Guidelines, Appendix H at para. 24.
    j. Broadcast auxiliary stations. 68. This category includes 
licensees of Remote Pickup Stations, Aural Broadcast Auxiliary 
Stations, Television Broadcast Auxiliary Stations, and Low Power 
Auxiliary Stations, authorized under Part 74 of the Commission's Rules. 
Auxiliary stations are generally associated with a particular 
Television or Radio Broadcast Station or Cable Television System.
    69. The FY 1995 revenue requirement for this category is $900,000. 
We have revised estimated payment units to 30,000 licenses based upon a 
review of our license records. Dividing the category's revenue 
requirement by its estimated payment units results in a fee 

[[Page 34013]]
of $30 per license. Thus, we are assessing licensees of Commercial 
Auxiliary Stations a $30 annual regulatory fee for FY 1995 on a per 
call sign basis. We are making no changes to the rules for calculating 
or submitting regulatory fee payments by licensees of facilities in 
this service category. See Guidelines, Appendix at para. 25.
    k. International HF broadcast (Short Wave). 70. This category 
covers International HF Broadcast Stations licensed under Part 73 of 
the Commission's Rules to operate on a frequency in the 5,950 Khz to 
26,100 Khz range to provide service to the general public in foreign 
countries. The proposed fees for International HF Broadcast are set 
forth in the International Service category in the FY 1995 fee 
schedule.
    71. For FY 1995, the revenue requirement for this category is 
$4,750. Payment units are estimated to be 19 short wave licenses. 
Dividing the category's revenue requirement by its estimated payment 
units results in a fee of $250 per license. See Appendix E Thus, for FY 
1995, we are assessing an annual regulatory fee of $250 per station 
license. We are making no changes to the rules for calculating and 
submitting fees by licensees of facilities in this service category. 
See Guidelines, Appendix at para. 26.
4. Cable Services
    a. Cable television systems. 72. This category includes operators 
of Cable Television Systems, as that term is defined in Section 76.5 of 
the Commission's Rules, providing or distributing programming or other 
services to subscribers under Part 76 of the Commission's Rules.
    73. The National Cable Television Association (NCTA), the Small 
Cable Business Association (SCBA), and the Cable Telecommunications 
Association contend that our allocation of full-time equivalents (FTEs) 
to cable television is unsupported and is unduly high. SCBA urges us to 
exempt small systems from payment of regulatory fees. Finally, NCTA and 
SCBA contend that we have understated the number of payment units, 
i.e., cable television subscribers, subject to the fee.
    74. We have addressed in paras. 11 through 26 our allocation of 
FTEs. Therefore, no further discussion of this issue is required here. 
Further, we find that the Regulatory Fee Schedule adequately considers 
the financial circumstances of small cable systems by basing the fee 
payment for cable systems on their number of subscribers so that 
payments by cable systems reflect their relative size and their 
relative benefits from our regulation. We have divided the cable system 
revenue requirement of $29,400,000 by our estimate of 60,000,000 
payment units to derive the FY 1995 fee for cable systems of $.49 per 
subscriber. See Appendix F. Therefore, we are assessing a fee of $.49 
per cable television subscriber.\20\

    \20\ Consistent with our earlier interpretation of congressional 
intent, we require payment of the cable system regulatory fees on a 
per subscriber basis rather than per 1,000 subscribers as set forth 
in the statutory Regulatory Fee Schedule. See FY 1994 Order at para. 
100.
---------------------------------------------------------------------------

    75. Payments for cable systems are to be made on a per subscriber 
basis by community unit determined as of December 31, 1994 as reported 
on each cable system's 1994 Annual Report of Cable Systems (FCC Form 
325). We are making no change in the rules for calculating or 
submitting regulatory fees by cable system operators. See Appendix F 
for a description of the development of the fee for cable systems, See 
also, Guidelines, Appendix H at para. 27.
    b. Cable antenna relay service. 76. This category includes Cable 
Television Relay Service (CARS) Stations authorized under Part 78 of 
the Commission's Rules. These stations transmit television and related 
audio signals, signals of AM and FM broadcast stations and cablecasting 
from the point of reception to a terminal point from which the signals 
are distributed to the public by a cable television system.
    77. SCBA contends that the CARS fee is out of proportion to the 
benefits received from our regulation of these facilities. Since SCBA 
has provided no support for its argument, we will give no consideration 
to an adjustment of the CARS fee. Further, we reject the argument of 
SCBA that we should exempt small cable systems from the CARS fee. SCBA 
has not demonstrated that the fee is unreasonable or that small cable 
systems receive any less benefit from our regulation than other cable 
systems.
    78. Our FY 1995 revenue requirements for CARS is $603,780 and our 
estimated payment units are 2,082 licenses. Dividing the revised 
revenue requirements for CARS by our estimated payment units results in 
a fee of $290 per license. See Appendix F. Thus, for FY 1995, we are 
assessing a $290 regulatory fee per CARS license. We are making no 
change to the rules for calculating and submitting regulatory fees by 
CARS licensees. See Appendix F for a description of the development of 
the fee for CARS. See also, Guidelines, Appendix H at para. 29.
5. Common Carrier Services
    79. We have received numerous comments from providers of Common 
Carrier Services objecting to the amount of the fees proposed for their 
particular categories of service. Several of these parties complain 
that the FTEs assigned to the Common Carrier category and the costs 
apportioned to their particular service category are unduly high, and 
that the Notice miscalculated the estimated payment units for their 
services. We have discussed our FTE allocations, cost allocations and 
unit estimates in paragraphs 8 through 23. We will, however, address 
issues related to cost allocation and payment units where the arguments 
presented have not been previously considered. See Appendix G for a 
description of the development of the fee for services within the 
Common Carrier category.
    80. The Commission is exercising its authority pursuant to Section 
9(b)(3) in order to revise the fees associated with regulation by the 
International Bureau. Numerous commenters have expressed concern that 
the proposed fees would not be representative of the costs associated 
with the regulatory activities of the International Bureau, nor would 
the proposed fees reflect the benefits provided to the payers of the 
proposed fees.
    81. Section 9(b)(3) provides the Commission authority to adjust the 
Schedule of Regulatory Fees provided the following two conditions are 
met: (1) the Comission determines that the Schedule requires amendment 
to comply with the requirements of paragraph (1)(A), which states, 
``The fees assessed under subsection (a) shall be derived by 
determining the full-time equivalent number of employees performing the 
activities described in subsection (a) within the Private Radio Bureau, 
Mass Media Bureau, Common Carrier Bureau, and other offices of the 
Commission. . . ,'' and (2) the basis for changing or reclassifying 
services in the Schedule reflects additions, deletions, or changes in 
the nature of its services as a consequence of Commission rulemaking 
proceedings or changes in law.
    82. The Commission has determined that the reorganization 
establishing the International Bureau satisfies both of the 
requirements described above. Specifically, the reorganization was a 
Commission rulemaking proceeding, as defined in 47 CFR 1.412(b)(5), 
which resulted in the Commission being able to determine the full-time 
equivalent number of employees performing regulatory fee-based 
activities in the International Bureau.

[[Page 34014]]

    83. Specifically, the Commission will adjust the Common Carrier Fee 
category so that the total collected from the individual services 
associated with International Bureau fees \21\ totals approximately 
$8.3 million, which is the estimated regulatory cost associated with 
the International Bureau.\22\ The revisions to the Common Carrier fee 
category have been made by reallocating the difference between what 
would have been collected under the International Bureau fees proposed 
in the Notice and $8.3 million to all remaining services in the Common 
Carrier fee category on a proportional basis.

    \21\ Specifically: International Circuits, Space Stations, Earth 
Stations and International Public Fixed Radio Stations.
    \22\ There are 72 FTEs within the International Bureau that are 
directly associated with regulatory fee activities. To the number we 
have added an additional 40%, or 28 FTEs, for the indirect support 
FTEs as explained in paragraph 8. The resulting cost is $8.3 million 
(100 FTEs multiplied by $83,000 per FTE).
---------------------------------------------------------------------------

    a. Public mobile/cellular radio services. 84. Fees for the Public 
Mobile and Cellular Radio Services are set forth in the FY 1995 
Regulatory Fee Schedule within the Wireless Radio service category. 
These services include common carriers and others (e.g., cellular radio 
licensees) offering a wide variety of land-based or air-to-ground 
mobile telephone, paging or data transmission services to the public, 
under Parts 22 and 24 of the Commission's Rules. Licensees include 
those using radio to provide telephone services at fixed locations, 
such as Basic Exchange Telecommunications Radio Services, Rural Radio 
and Offshore Radio.
    85. In the Notice, we proposed to assess a fee for this service 
category based upon the total number of telephone numbers or call signs 
that a licensee provides to its customers. The Regulatory Fee Schedule 
assessed the fee based on the number of a licensee's subscribers. 
Reliance on a subscriber count, however, does not fully reflect the 
benefit of our regulation i.e., usage of channel capacity, because 
individual subscribers vary in the number of mobile units or telephone 
numbers utilized. In order to assure that all cellular/mobile units in 
operation are, in fact, assessable as customers, we are reviving our 
fee structure to assess the fee based on mobile units or telephone 
numbers provided by a licensee as a more equitable payment formulation 
because it better reflects actual usage of our frequency assignments 
and related benefits of our regulation. Therefore, for FY 1995, we 
amend our Regulatory Fee Schedule so that each cellular licensee will 
pay an annual fee based on the number of telephone numbers provided, 
and each licensee in the Public Mobile Radio Service pays an annual 
regulatory fee for each mobile unit, including paging units, assigned 
to its customers, including resellers of its services.
    86. A number of commenters \23\ argue that our proposal to base the 
fees on units (telephone numbers or mobile units) rather than 
subscribers is inconsistent with the Regulatory Fee Schedule developed 
by Congress. They assert that the change to units is not an adjustment 
permitted under Section 9(b)(2) or a change pursuant to law or 
regulation as required by Section 9(a)(3).

    \23\ See comments filed by Personal Communications Industry 
Association (PCIA), Alltel Mobile Communications and Alltel Service 
Corporation (Alltel), Frontier Cellular Holding, Inc. (Frontier), 
Mobilmedia Communications, Inc., Vanguard Cellular Systems 
(Vanguard), Arch Communications Group, and Metrocall, Inc. Vanguard 
also argues that the computation of the regulatory fee based on 
units could result in disclosure of commercially sensitive 
information. To date we have not had FOIA or other requests for 
access to the information submitted by cellular/mobile carriers with 
their fee proposals. However, any carrier concerned that the 
information submitted may be used to its detriment, can request that 
the Commission protect its submission from routine disclosure to the 
public.
    87. Congress, however, has authorized the Commission to modify the 
Regulatory Fee Schedule to ensure that the fees are reasonably related 
to the benefits of the Commission's regulatory activities. See 47 
U.S.C. 159(b)(1)(A). Under Section 9, ``the Commission is required to 
adjust the fees to reflect proportionate changes in its appropriations, 
and is permitted through a rule making, to make changes to the 
Regulatory Fee Schedule, including adding, deleting or reclassifying 
services when the Commission determines that such changes are necessary 
to ensure such fees are reasonably related to the benefits provided to 
the payor of the fee by the Commission's activities.'' Conference 
Report H. Rept. No. 213, 103d Cong., 1st Sess. 1188 (1993). Thus, 
Congress intended that we modify the fee structure in instances where 
we find that a revision to the Regulatory Fee Schedule better reflects 
the relative benefits licensees receive from our regulatory activities 
and achieves a more equitable distribution of the fee burden. We find 
that assessing fees on the basis of mobile units or telephone numbers, 
equitably reflects the actual benefit received from the Commission's 
regulation.
    88. Alltel argues the Commission should modify the date for 
determining fees so that the burden of the fees would be shared by new 
service providers. It asserts that equity requires that the fee burden 
be shared by licensees authorized during the year.
    89. We recognize that Alltel's suggestion would distribute the fee 
burden among additional service providers. However, such a system would 
be difficult to administer and lead to confusion because regulatees are 
directed to count payment units as of a date certain, and as new 
regulatees are authorized, would involve utilization of different dates 
for computing fees for different licensees. Moreover, we do not believe 
that a calculation date later in the fiscal year would significantly 
affect the amounts of the fee payments that we are adopting since many 
new service providers subject to the fee would be in an early start-up 
phase of their operations and existing providers would have accounted 
for substantially all their units of payment under the calculation date 
that we have proposed. In the FY 1994 Order, establishing December 31 
as the calculation date for regulatees paying fees based upon 
subscriber lines or circuits, we noted that many regulatees file 
reports based upon information collected as of that date. 9 FCC Rcd at 
5365-66 para. 96. In other instances, regulatees calculate subscriber 
counts as of that date for internal purposes. Reliance on December 31 
as a date certain for calculating fees facilitates both the computation 
of fee payments and our verification that the correct fee payments are 
submitted. 9 FCC Rcd at 5350, Paras. 48-49. Further, since our 
regulatory fee program is ongoing, new carriers will be subject to 
payment of fees in the next fiscal year. Thus, we have decided to adopt 
December 31, 1994, as the date for calculation of fee payments for all 
mobile regulatees.
    90. Frontier and Alltel also argue that cellular and paging 
licensees are being treated differently from carriers using the 
interstate network. Frontier asserts that cellular resellers are exempt 
from the regulatory fee and that this places an unfair burden on 
facilities-based carriers who must pay for regulatory activities 
benefitting resellers of mobile services. Also, these parties contend 
that our treatment of mobile resellers is inconsistent with our 
proposal to include resellers of interstate services in the fee 
schedule.
    91. We recognize that the fees for mobile service providers are 
assessed in a manner different from the fee for users of the interstate 
network and that we are including resellers of interstate services 
directly in the fee schedule, but not resellers of mobile services. We 
also recognize that there are substantial equity issues that must be 
addressed 

[[Page 34015]]
before assessing resellers a fee, in order to protect them from having 
their mobile units or telephone numbers double counted. For non-mobile 
common carriers we are adopting a proposal to assess fees on the basis 
of gross revenues, and we are protecting resellers from double payments 
by permitting them to deduct from their gross revenues the payment made 
to facilities based carriers. In the case of mobile resellers, we do 
not have the data necessary to structure a fee schedule on the basis of 
gross revenues or in a manner which would protect mobile resellers from 
double payments.
    However, by revising the Regulatory Fee Schedule to require a fee 
payment for every mobile unit or telephone number made available by a 
licensee to a third party, we will collect a fee for each unit made 
available to a licensee's customers, including resellers. Moreover, to 
the extent that the regulatory fees are included in the carriers' 
charges to the resellers, the resellers will be sharing in the 
regulatory burden.
    92. A number of mobile regulatees also assert that their fees are 
increasing at a disproportionate rate because of the increase in the 
per unit rate and because of the change in counting from subscribers to 
mobile units or telephone numbers used. Our modification of the 
methodology for computing fees was required because reliance on a 
subscriber count does not fully reflect actual usage of the frequencies 
we have authorized mobile providers to operate. For FY 1994, regulatees 
often paid only a nominal $.06 fee for a single subscriber even though 
that subscriber may have subscribed to numerous mobile units or 
telephone numbers. Thus, as a result of the fee methodology, fee 
payments did not necessarily reflect the direct benefit of our 
regulation to individual licensees. For those regulatees whose fees 
reflected actual usage, the modification in counting units will not 
result in a significant increase in fees. However, the fact that other 
regulatees may be subjected to larger increases is only a reflection of 
the fact that their prior fees did not reflect the benefits they 
received and does not establish that they are being subjected to an 
unwarranted or disproportionate increase in fees.
    93. Several parties, including PCIA, Mobile Media Communications, 
and Airtouch Paging, requested that the Commission establish a separate 
and lower fee category for regulatees offering one-way paging services. 
We have reviewed these requests and determined that a reduced fee for 
Part 22 one-way pagers is appropriate in view of the quality of the 
channels afforded paging entities versus cellular providers. Pagers are 
authorized only to transmit one-way data messages whereas cellular 
providers operate systems providing two-way voice communications. We 
are also aware that the paging industry is very competitive and 
generally has low profit margins compared to the cellular industry and 
to other public mobile services. We have therefore established a 
reduced annual fee of $.02 per pager for FY 1995. This permitted 
amendment should provide an equitable cost allocation among cellular 
and other public mobile licensees and paging licensees based upon their 
relative market pricing structures while minimizing any adverse impact 
on the one-way paging industry.
    94. Our revenue requirement for FY 1995 for Cellular and Other 
Public Mobile (non-one way paging) carriers is $3,510,000. The revenue 
requirement for Public Mobile One Way Pagers is $392,000. Based on the 
comments of parties, we have also revised the estimated payment units 
for these services to 19.6 million one way pagers and 23.4 million 
Cellular/Other Public Mobile units. Dividing the revenue requirement 
for Cellular/Other Public Mobile by its estimated units results in an 
annual regulatory fee of $.15 per payment unit.\24\ Thus, we will 
assess a fee of $.15 per mobile unit or telephone number in this 
service. For one way pagers the resulting fee is $.02 per pager.\25\ 
\26\ See Guidelines, Appendix H at Paras. 30-33.

    \24\ As we decided in our FY 1994 Order, we require licensees in 
the Air-Ground Radiotelephone Service to pay their fee based upon 
their number of transceivers leased for operation in aircraft.
    \25\ PCIA notes that the fees for several categories of service 
proposed in the Notice were the same and questions whether the then-
proposed fees were developed pursuant to the statutory scheme or 
whether the Commission decided on the amount of the fee without 
regard to Section 9's methodology for developing the fees. Plainly, 
an examination of the methodology used to calculate the mandatory 
adjustments required by Section 9 reveals that when fee amounts 
within the same fee category (e.g., Common Carrier) are pro-rated 
upward or downward, the existing relationship between each fee is 
retained. Therefore, two fee amounts within the same fee category 
having the same dollar value would both have similar values after 
the pro-rata mandatory adjustment is made.
    \26\ We will incorporate into our fee payment procedures the 
substance of Public Notice No. 43189, Paying Regulatory Fees (July 
8, 1994), requiring public mobile providers to list all their call 
signs on the Form 159/159C and to distribute their total number of 
mobile units for each call signs in one of the following ways: (1) 
Allocate one mobile unit for every call sign, except one, and 
allocate the remainder of mobile units to the remaining call sign; 
or (2) determine the average number of mobile units per call sign 
and use this number of mobile units for each call sign. The filer is 
responsible for documenting its fee payment.
---------------------------------------------------------------------------

    b. Domestic public fixed radio service. 95. The Domestic Public 
Fixed Radio Service includes stations authorized under Part 21 of the 
Commission's Rules to use microwave frequencies for video and data 
distribution within the United States. This category includes licensees 
in the Point-to-Point Microwave Radio Service, Local Television 
Transmission Radio Service, Digital Electronic Message Service, 
Multipoint Distribution Service (MDS), and Multichannel Multipoint 
Distribution Service (MMDS).\27\ We received no comments related to the 
proposed fee.

    \27\ MDS and MMDS are now regulated by the Mass Media Bureau 
and, therefore, the regulatory fees for these services are shown 
within the Mass Media category in the FY 1995 fee schedule. See 
Appendix B.
---------------------------------------------------------------------------

    96. The FY 1995 revenue requirement for this service is $1,960,000, 
and the payment units are estimated to be 14,000 licenses. Therefore, 
we will adopt for Domestic Public Fixed Radio Service licensees a $140 
annual regulatory fee per call sign payable on a specified date to be 
announced by the Commission. Moreover, in response to Southwestern Bell 
Corporation's request, we will modify our fee payment procedures to 
permit licensees in the Public Fixed Radio Service to file a single 
Form 159 stating their number of call signs and the total fee amount 
with an attached listing of each call sign covered by the fee payment. 
Licensees with up to 100 call signs may submit a hard copy list with 
their Form 159. However, we require licensees with greater than 100 
call signs to file a data diskette containing their listing of call 
signs along with a hardcopy Form 159. We are adopting no other change 
to the rules for calculation and submission of the fee payment by 
licensees in the Domestic Public Fixed Radio Services. See Guidelines, 
Appendix H at para.34.
    c. International public fixed radio service. 97. The International 
Public Fixed Radio Service (IPFRS) is set forth in the FY 1995 
Regulatory Fee Schedule within the International fee category. It 
includes common carriers authorized under Part 23 of the Commission's 
Rules to provide radio communications between the United States and a 
foreign point via microwave or H troposcatter systems, other than 
satellites and satellite earth stations, but not including service 
between the United States and Mexico and the United States and Canada 
using frequencies above 72 MHz. The FY 1995 revenue requirement for 
this service is $4,000, and the payment units are estimated to be 20 
licenses. Thus, we are adopting a regulatory fee for IPFRS licensees of 
$200 per call sign. We are proposing no 

[[Page 34016]]
change to the rules for calculating and submitting fees by licensees in 
the International Public Fixed Radio Services. See Guidelines, Appendix 
H at para.35.
    d. Earth stations. 98. Earth stations are set forth in the FY 1995 
Regulatory Fee Schedule within the International fee category. The 
earth station category encompasses all domestic and international earth 
station facilities authorized or registered under Part 25 of the 
Commission's rules. These facilities include transmit/receive, 
transmit-only, and receive-only earth stations; Very Small Aperture 
Terminals (VSATs) operating in the \12/14\ GHz frequency bands; Mobile 
Satellite Earth stations; and equivalent C-band antennas operating in 
the \4/6\ GHz frequency bands authorized pursuant to blanket authority.
    99. In Section 9's Schedule of Regulatory Fees, these facilities 
were grouped into several categories. Within these categories, some 
fees were assessed on a per meter basis; other fees were assessed on a 
per 100 antennas basis. For example, in our FY 1994 Order, we adopted 
the Regulatory Fee Schedule's requirement that a higher fee be assessed 
for fixed satellite earth station antennas of 9 meters or more than for 
those less than 9 meters. This distinction resulted in the anomaly that 
antennas performing the same function were subjected to different fees, 
a fee several thousand percent higher for large earth stations than for 
small earth stations. To rectify this disparity, we proposed in the 
Notice to exercise our permitted authority to eliminate the dual fee 
levels for these earth stations. Therefore, we proposed that any earth 
station antenna in this service category be charged a fee based upon 
its size as measured in meters in order to eliminate the disparity in 
fees under the former schedule and to assure that smaller antennas 
would continue to be subject to a smaller fee requirement than larger 
antennas.
    100. EDS Corporation argues that their small transmit/receive and 
transmit only earth stations should continue to be assessed fees 
similar to those charged for earth stations in VSAT networks (a per 
antenna fee), as Congress prescribed in its fee schedule, instead of 
fees similar to those for larger transmit/receive, transmit only earth 
stations (a per antenna-meter fee), as proposed in the Notice. EDS 
contends that since the enactment of Section 9, no change in the 
regulation of small transmit/receive and transmit only earth stations 
has taken place that would justify a revision in the manner in which 
its fees are assessed. In addition, COMSAT Video contends that C-band 
transmit/receive and transmit only earth stations should be assessed 
fees distinct from the fees assessed for Ku-band transmit/receive and 
transmit only earth stations. COMSAT Video questions our estimated 
payment unit estimates for transmit-receive and receive only earth 
stations.
    101. We reject EDS's argument that we lack the authority to revise 
the Regulatory Fee Schedule. As noted, Congress specifically provided 
that we were to adjust the fees to ensure that they are reasonably 
related to the benefits received. 9 U.S.C. 159(b)(1)(A). We conclude 
that we cannot find sufficient difference in our regulation of earth 
stations (regardless of size or intended use) to warrant establishing 
separate fees for these facilities.
    102. For FY 1995, we proposed to modify the Regulatory Fee Schedule 
for receive-only earth stations by assessing the fee on a per meter 
basis, in the amount of $120 per meter, regardless of whether a 
facility was more or less than 9 meters in diameter.
    103. The Associated Press (AP) the National Cable Television 
Association (NCTA), the Cable Telecommunications Association (CATA), 
Joint Cable Commenters \28\ and the Wireless Cable Industry Association 
(WCIA) object to the substantial increase in fees proposed for receive 
only earth stations of less than 9 meters. NCTA and the Joint 
Commenters contend that the proposed fee would amount to as much as a 
10,000 percent increase for receive only earth stations smaller than 9 
meters in diameter. CATA and WCIA claim that the burden of the increase 
would fall upon small cable and wireless cable operators in rural 
areas, unable to share earth stations among systems. Further, CATA and 
WCIA argue that Congress distinguished between the fees for large and 
small receive only earth stations in order not to overburden cable and 
wireless entities.

    \28\ The Cable Industries Corp., Multimedia Cablevision, Inc., 
Providence Journal Company, and Star Cable Associates jointly filed 
comments.
    104. NCTA argues that the assessment for small receive only earth 
stations is not substantiated by a description of how the assessment 
was developed. GE American states that our unit estimate for receive 
only earth stations is low. Further, AP, CATA and NCTA contend that our 
deregulation of receive only earth stations and, in particular, our 
policy to permit operators to decide individually whether to register 
their facilities for interference protection, demonstrates that only a 
minimal degree of our regulatory activities are involved with 
regulation of receive only earth stations.
    105. In view of the comments received, we have reevaluated our 
proposed fee for receive only earth stations. We are aware that our 
regulatory requirements for these facilities have been substantially 
modified in recent years, notwithstanding the inclusion of receive only 
earth stations in Section 9(g)'s fee schedule. In particular, we 
recognize that domestic receive only earth stations are no longer 
subject to licensing. (International receive only earth stations are 
currently licensed). Rather, operations of receive only earth stations 
may register these facilities with us in order to obtain interference 
protection and other benefits. Further, our review of the resource 
burden of providing interference protection to receive only earth 
stations demonstrates to us that regulation of these facilities 
accounts for an insignificant portion of the costs attributable to 
these activities. Therefore, we have decided to exercise our authority 
to make ``permitted amendments'' and to delete receive only earth 
stations as a service subject to a regulatory fee requirement for FY 
1995. See 47 U.S.C. Sec. 159(b)(3). Therefore, we will assess no fee 
for receive only earth stations.
    106. In addition, we have received the fee structure in effect in 
FY 1994 for earth stations and conclude that the current structure is 
not the most equitable for regulatory fee purposes. As noted, all 
satellite earth stations require a certain amount of regulatory 
activity. Commenters have focused on individual elements of our 
regulatory activities in arguing against the changes in fees for 
particular types of earth stations. For example, certain classes of 
earth stations require more international activity than others (i.e., 
coordination and consultation); other classes of earth stations require 
more rulemaking and enforcement activity than others (i.e., zoning 
related matters). Since we do not yet have a cost accounting system 
capable of assigning the cost of specific regulatory activities to 
specific classes of earth stations, we find that assessing the fee on a 
per authorization or registration basis, rather than a per meter or 100 
antennas basis is the most equitable method of allocating the 
regulatory costs assigned to satellite earth stations. Moreover, we 
find no reasonable basis for charging a per meter fee when it appears 
that the regulatory costs associated with a five or nine meter antenna 
are similar and the benefits to the payer are no less at five meters 
than at nine meters. Consequently, we are eliminating the 

[[Page 34017]]
size distinctions and assessing fees on a per authorization or 
registration basis.\29\

    \29\ An ``authorization'' is defined on a per call sign basis. A 
single call sign may either authorize one earth station antenna, or 
may provide a ``blanket authorization'' covering several earth 
station antennas.
---------------------------------------------------------------------------

    107. Accordingly, we have revised our estimate of the number of 
payment units to conform to the number of authorizations or 
registrations contained in this service category (includes VSATs, 
mobile equivalents, transmit/receive and transmit only earth stations). 
As of October 1, 1994, 3,378 authorizations and registrations had been 
issued. The FY 1995 revenue requirement attributable to all earth 
stations is $1,114,740. Dividing the requirement requirement by our 
estimate of 3,378 earth stations results in a fee of $330 per 
authorization or registration. See Appendix G.
    e. Space stations (Geosynchronous). 108. Geosynchronous space 
stations are domestic and international satellites positioned in orbit 
to remain fixed relative to the earth. They are authorized under Part 
25 of the Commission's Rules to provide communications between 
satellites and earth stations on a common carrier and/or private 
carrier basis.
    109. In addition to issues addressed above relating to FTEs, the 
satellite parties raise several issues in opposing our proposed space 
segment fees. Columbia and Panamsat, supported by GE Americom, argue 
that Comsat is obligated to pay space segment fees for its Intelsat and 
Inmarsat satellites in addition to the fees it pays for its domestic 
satellites. Also, Columbia and Panamsat argue that we should base our 
space segment fee on the number of transponders operated by a licensee 
rather than its number of operational satellites because transponder 
usage and bandwidth capacity more rationally reflect the benefits that 
licensees receive from our regulation. Finally, these parties argue 
that the number of satellites in operation as of October 1, 1994, the 
date for calculating fees, is higher than the estimated number of 
satellites we used to calculate the per satellite fee.
    110. We reject the parties' contention that Comsat General must pay 
fees on a per space station basis for the Intelsat and Inmarsat 
satellites that it manages. Section 9's legislative history discloses 
that Congress intended that Comsat General would be subject to a space 
segment fee only for its licensed operations. Specifically, Congress 
stated with respect to space station fees that:

    The Committee intends that fees in this category be assessed on 
operators of U.S. facilities, consistent with FCC jurisdiction. 
Therefore, these fees will only apply to space stations directly 
licensed by the Commission under Title III of the Communications 
Act. Fees will not be applied to space stations operated by 
international organizations subject to the International 
Organization Immunities Act, 22 U.S.C. Section 288 et seq.\30\

    \30\ H.R. Rep. No. 102-207, 102d Cong., 1st Sess. 26. Both 
Intelsat and Inmarsat are subject to the International Organizations 
Immunities Act. See Exec. Order No. 11,996, 42 FR 4331 (1977); Exec. 
Order No. 12,238, 45 FR 60,877 (1980).

This language was incorporated by reference in the Conference Report 
accompanying the 1994 Budget Reconciliation Act, which included the 
regulatory fee program.\31\ Thus Congress did not intend for the 
Commission to assess a fee per space station for the space segment 
facilities of Intelsat and Inmarsat. Therefore, we will not require 
Comsat General to submit fee payments for their satellites. For FY 
1996, however, we intend to explore other ways to recover the 
regulatory costs imposed on the Commission on behalf of Comsat's 
participation in the Intelsat and Inmarsat programs.

    \31\ Conference Report H. Rept. No. 213, 103d Cong., 1st Sess. 
499 (1993).
---------------------------------------------------------------------------

    111. Further, we reject the parties' arguments that we should base 
the space segment fee on transponders aboard operational satellites 
rather than on the number of operational satellites. Our calculation of 
fees using space segments rather than transponders is reasonable and 
reflects Congress' decision to assess satellite fees based on 
operational satellites. Moreover, Panamsat has provided us with no 
demonstrable evidence that the costs of regulating the various 
satellite systems is more closely related to the number of transponders 
that a satellite carries than to the total number of operational 
satellites. Nor has Panamsat considered the administrative burden of 
its proposed fee structure on regulatees subject to the fee and upon 
our own resources. Because the cost of satellite regulatory activities 
is reasonably related to the number of operational satellites, we find 
no basis for modifying our reliance on space stations as payment units.
    112. COMSAT General contends that the proposed fee is contrary to 
the public interest because it will discourage maintenance of older 
satellites even thought they may remain viable providers of low-cost, 
full time and occasional use commercial services. COMSAT General 
further contends that the proposed fee will discourage competitive 
discounting or exploitation of innovative satellite technologies and is 
harmful to consumers of satellite services, particularly start-up and 
small businesses, because it results in higher prices for services.
    113. We reject Comsat General's contention that our fees may have 
an adverse impact on innovation in the satellite and other industries 
by precluding the use of older satellites. Newer satellites offer the 
public access to faster, more efficient, and more advanced 
telecommunications services. Providing an incentive to maintain older, 
less efficient satellites may have a negative impact on the end users 
of satellite services. Newer satellites are available to perform any 
service that Comsat general may have intended for older generation 
satellites. Although Comsat General states that older satellites ``may 
remain viable as providers of low-cost providers of full time and 
occasional use commercial services'', they provide us no documentation 
that the cost per user to least capacity on a newer, high capacity 
satellite that can serve more customers.
    114. Finally, several satellite parties contend that our estimate 
of payment units for the satellite fee is flawed because we did not 
calculate the number of satellites in operation on October 1, 1994, the 
date for the calculation of fees. We have reviewed our records and find 
that 39 satellites were operational on October 1, 1994. The revenue 
requirement for regulation of satellites is $2,925,000. Dividing this 
by 39 operational satellites yields a fee of $75,000. See Guidelines, 
Appendix H at para.40.
    f. International bearer circuits.
    115. Regulatory fees for international bearer circuits are set 
forth in the International Service category in the FY 1995 Regulatory 
Fee Schedule. The fee proposed in the Notice is to be paid by the 
facilities-based common carrier activating the circuit in any 
transmission facility for the provision of service to an end user or 
resale carrier. Also as proposed in the Notice, we are modifying our 
requirements for payment of the fee for bearer circuits by private 
submarine cable operators to require that they pay fees for circuits 
sold on an indefeasible right of use (IRU) basis or leased to any 
customer other than an international common carrier authorized by the 
Commission to provide U.S. international common carrier services. 
Compare FY 1994 Order at 5367. As provided in the FY 1995 fee schedule, 
64 Kbps circuits or their equivalent will be assessed a fee. Equivalent 
circuits include the 64 Kbps circuit equivalent of larger bit stream 
circuits. For example, the 64 Kbps 

[[Page 34018]]
circuit equivalent of a 2.048 Mbps circuit is thirty 64 Kbps circuits. 
Analog circuits such as 3 and 4 KHz circuits used for international 
service are also included as 64 Kbps circuits. However, circuits 
derived from 64 Kbps circuits by the use of digital circuit 
multiplication systems are not equivalent 64 Kbps circuits. Such 
circuits are not subject to fees. Only the 64 Kbps circuit from which 
they have been derived will be subject to payment of a fee.
    116. In the Notice we estimated the volume of active 64 Kbps 
circuits or equivalent to be 62,000. AT&T, supported by Sprint, 
contends that our estimate of the number of bearer circuits subject to 
the fee was low. We have re-examined our estimate of the number of 
bearer circuits subject to a fee as of October 1, 1994. Based on this 
re-examination, we have revised the number of bearer circuits to 
125,000. The FY 1995 revenue requirement for this service is $500,000. 
Dividing the revenue requirement for this service by the number of 
active bearer circuits results in a fee of $4.00 per circuit.
    117. For purposes of calculating equivalent units subject to the 
bearer circuit fee, we will assess fees as follows:

                                                                        
                                                                No. of  
                                                              equivalent
           Analog television channel, size in MHz              64 Kbps, 
                                                               circuits 
                                                                        
36.........................................................          630
24.........................................................          288
18.........................................................          240
                                                                        

    See Appendix G. for a description of the development of the fees 
for international bearer circuits; see also Guidelines, Appendix H at 
para.41.
    g. Inter-exchange and local exchange carriers, competitive access 
providers, pay telephone providers, and other non-mobile providers of 
interstate service.
    118. Inter-Exchange Carriers (long distance telephone companies) 
and Local Exchange Carriers (local telephone operating companies) 
provide commercial and private residential telephone service.
    119. In the Notice, we proposed to require a regulatory fee payment 
from inter-exchange carriers (IXLs), local exchange carriers (LECs), 
and competitive access providers (CAPs), consistent with our FY 1994 
fee schedule. Also, we proposed to add to the schedule all domestic and 
international carriers that provide operator services, WATS, 800, 900, 
telex, telegraph, video, other switched services, interstate access, 
special access, and alternative access services. We stated that the fee 
requirement would apply to carriers using their own facilities or 
reselling facilities and services of other carriers or telephone 
holding companies, including companies other than traditional telephone 
companies that provide interstate access service to long distance 
companies and other customers.
    120. In addition, we proposed to modify our methodology for 
assessing fees upon these carriers generally, including CAPs and 
resellers, by basing the fee upon the number of customer units, i.e., 
the number of users of a service. As in FY 1994, inter-exchange and 
local exchange carriers would be required to calculate their total fee 
payments based upon their total number of presubscribed lines (PSLs). 
In the alternative, we proposed to assess fees on providers of 
interstate services based on their minutes of interstate service in 
calendar year 1994. For each methodology, we proposed the use of 
certain equivalency assumptions in recognition that several categories 
of service providers would be unable to calculate their fees based on 
either PSLs or minutes of use (MOUs). Moreover, we invited interested 
parties to file comments proposing ``the most efficient and equitable 
method for assessment of fees.'' See Notice at paragraph 58.
    121. Numerous parties submitted comments opposing our proposal to 
add resellers and other users of the interstate network to the fee 
schedule.\32\ The parties argue that Section 9 authorizes us to add 
services to the Regulatory Fee Schedule only if a regulation or change 
in the law so dictates. See 47 U.S.C. Sec. 159(b)(3). Thus, in the view 
of these parties, no such rule making or change in the law has occurred 
since the enactment of Section 9 to justify the addition of resellers 
to the fee schedule. Further the interested parties contend that the 
Regulatory Fee Schedule precludes inclusion of resellers because it 
specifically limits the fees to providers of ``presubscribed lines,'' 
and resellers do not provide presubscribed lines. See 47 U.S.C. 
Sec. 9(g). Finally, the commenters argue that the imposition of a fee 
on resellers is contrary to our procompetitive and deregulatory 
policies, particularly since resellers, in their view, are subject to 
minimal regulation and derive little benefit from our regulation.

    \32\ Parties opposed to adding resellers to the Regulatory Fee 
Schedule include America's Carriers Telecommunications Association 
(ACTA), Airtouch, Avis Rent A Car (AVIS), Competitive 
Telecommunications Association (Comptel), GTE Service Corporation 
(GTE), Hertz Technologies, Inc., LDDS Communications, Inc., and the 
Telecommunications Resellers Association (TRA). The American Public 
Communication Counsel (APCC), a trade association consisting, in 
part, of pay telephone operators, while not opposing inclusion of 
independent pay phone (IPP) operators in the fee schedule, argues 
that the fee for OPPs must be reasonable, fairly allocated fee and 
imposed on all payphones, including payphones operated by the local 
exchange carriers (LECs).
---------------------------------------------------------------------------

    122. We disagree with the argument that our regulation of resellers 
is so minimal that these carriers should not be subject to a fee 
requirement. As we observed in the Notice, we required facilities based 
carriers to remove any restrictions on the resale and sharing of 
private line facilities and services and our oversight of the 
interstate communications market has fostered the growth of the strong 
resale market that currently exists.\33\ Nothing that the parties have 
presented persuades us that their regulation is so minimal or their 
benefits so attenuated that these carriers should not be subject to a 
fee. Resellers are subject to tariffing requirements and are obligated 
to provide their services pursuant to just, reasonable and 
nondiscriminatory rates and practices in accordance with Sections 201 
and 202 of the Act. Their rates and services are also subject to our 
review pursuant to Section 208 of the Act.

    \33\ See Resale and Shared Use of Common Carrier Services, 60 
FCC Rcd 2d 588, 600 (1977) (In allowing resellers to obtain lines 
from facilities based  carriers,  we  declared  that  `` ` [resale  
carriers] * * *', whether they be brokers or value added carriers * 
* *, are equally subject to the requirements of Title II of the 
Communications Act.''); see also American Tel. and Tel. Co. v. 
F.C.C., 978 F.2d 727, 735 (D.C. Circuit 1992) (finding that 
resellers and other nondominant carriers must file tariffs and offer 
their services pursuant to just, reasonable and nondiscriminatory 
rates and practices pursuant to Sections 201 and 202 of the Act.) 
Resellers currently are subject to filing fees pursuant to Section 8 
of the Communications Act.
---------------------------------------------------------------------------

    123. In addition, we reject the argument that Section 9 requires a 
rule making other than the instant proceeding to add services to the 
Regulatory Fee Schedule. Nor do we believe that the fee schedule's 
provision that we assess fees for FY 1994 based upon PSLs amounts to a 
congressional directive that we limit our assessment of fees to 
interstate service providers capable of calculating their fees by a PSL 
count. 47 U.S.C. Sec. 159(g). Section 9's legislative history 
establishes that we ``are permitted through a rule making, to make 
changes to the fee schedule, including adding, deleting, or 
reclassifying services when the Commission determines that such changes 
are necessary to ensure such fees are reasonably related to the 
benefits provided to the payor of the fee by the Commission's 
activities.'' \34\

    \34\ Conference Report H. Rept. No. 213, 103d Cong., 1st Sess. 
499 (1993).
    Thus, our inclusion in the Regulatory Fee Schedule of resellers and 
other 

[[Page 34019]]
carriers using the interstate network is fully consistent with Section 
9's provisions.
    124. Many common carriers, including inter-exchange carriers, local 
exchange carriers, resellers, CAPs, and pay telephone operators filed 
comments addressing our proposal to revise our methodology for 
assessing fees based on customers units or, in the alternative, on 
MOUs. In addition, several commenters responded to our invitation to 
propose a method for assessing regulatory fees on common carriers by 
urging that we assess the fee based upon the gross revenues of the 
subject carriers.
    125. In describing our proposed methodology, we stated that fees 
would be assessed based upon the number of customer units. We defined 
customer units for LECs and pre-selected IXCs as their total number of 
presubscribed lines, as defined by Section 69.116 of the rules. 47 CFR 
69.116. For any other switched services, such as MTS, WATS, 800, 900 
and operator service not billed to the number from which the call is 
placed, the number of units would equal the number of billing accounts 
less those already associated with those presubscribed lines reported 
by the carrier. For non-switched service providers, including service 
provided by CAPs, special access, and private (alternative access) line 
providers, the number of customer units would be based on the total 
capacity provided to customers measured as voice equivalent lines. For 
this purpose, 4 Khz or 64 Kbps equivalents would equate to one voice 
equivalent line. We proposed to assess the fee for pay phone operators 
by their number of units based upon the number of pay telephones used 
for pay telephone compensation.
    126. The Notice's alternative fee structure based fee on a 
carrier's number of MOUs of interstate service in calendar year 1994. 
For access service provided by local exchange carriers, interstate 
minutes would equal the number of originating and terminating access 
minutes. For interstate service subject to access charges, the number 
of minutes would equal the number of originating and terminating access 
minutes. For other interstate services billed based on timed usage, the 
number of minutes would equal the number of billed minutes. For 
interstate services not billed on the basis of timed usage, minutes 
would be estimated as the billed revenue in dollars times ten.
    127. Several commenters support our proposed assessment of carrier 
fees based upon customer units.\35\ These parties contend that the 
customer unit methodology parallels the existing fee structure, under 
which LECs have planned and budgeted for their payments of the fees, 
and that a count of presubscribed access lines represents both an 
equitable measure of a carrier's relative market presence and a 
relatively stable measure. Also, they favor the proposal because its 
methodology forms the basis for calculation of Universal Service Fund 
requirements, familiar to the carriers, and because its calculations 
are simple and straightforward.

    \35\ Commenters supporting assessing the fee by customer units 
include Bell Atlantic, MCI Telecommunications Corporation (MCI) and 
Sprint Corporation (Sprint). In addition, Allnet Communications 
Services, Inc. (Allnet), Avis, Hertz and TRA support assessing the 
fee by customer units if resellers are added to the schedule.
---------------------------------------------------------------------------

    128. Other parties disagree that the customer unit approach is the 
methodology best suited to assessing regulatory fees.\36\ These parties 
claim that allocation mechanisms based on PSLs do not accurately 
reflect the various interexchange carriers' shares of switched 
services. According to AT&T, our FY 1994 PSL methodology failed to 
assess fees upon inter-exchange carrier's in a nondiscriminatory manner 
because AT&T's customers average significantly less usage and per line 
revenue than customers of other IXCs and, therefore, discourages its 
competitors from seeking out and serving low volume users. Further, 
several carriers state that our proposed equivalency ratios for 
carriers that cannot calculate their fees by PSLs do not accurately 
reflect the participation of these carriers in the market.

    \36\ Parties opposing assessing the fee by customer units 
include AT&T, LDDS, MFS, SBC and US West. Comptel opposes levying 
the fee on operator service providers (OSPs) based upon ``billing 
accounts'' because, in its view, the methodology proposed in the 
Notice would result in a fee for OSPs higher than the fee imposed on 
carriers for which fees are based upon the number of presubscribed 
lines.
    129. NYNEX and America's Carriers Telecommunications Association 
(ACTA) support assessing the fee for carriers based on MOUs, as 
described in the Notice's alternative methodology. NYNEX asserts that 
the MOU approach better reflects the relative size of each carrier's 
customer base and its regulatory benefits than do customer units and, 
thus, would ensure that every carrier pays an equitable share of 
regulatory costs. Further, NYNEX contends that MOU data is easy to 
administer and verify and avoids unnecessary reliance on assumptions, 
calculations and projections. ACTA favors adoption of the MOU approach 
if resellers are subjected to the fee because, in its view, assessment 
of the fee by MOUs has the advantages of lower administrative costs and 
resource burdens since calculation of the fee does not depend on a line 
count by the LECs or NECA.
    130. Several carriers oppose reliance on MOUs due to the large 
fluctuations in minutes of use which may lead to anomalies that distort 
the measure of a company's market presence and risk imposing an unfair 
burden of fees or a windfall in reduced fees for reasons other than a 
carrier's actual market size.\37\ Opponents points out that many LEC 
services, such as Special Access facilities sold to inter-exchange 
carriers, are not measured on a minutes of use basis. In this 
connection, the parties contend that a methodology based on MOUs would 
be difficult to administer because it relies on complex assumptions in 
order to calculate the fees for services that are not billed on a time 
usage basis. Several parties contend that our proposal to rely upon 
network usage assumptions in assessing fees for competitive access 
providers will result in excessive and unjustified fees from these 
carriers.

    \37\ Parties opposed to assessing the fee based upon MOUs 
include Alltel, AT&T, Bell Atlantic, LDDS, MCI, MFS, National 
Exchange Carriers Association (NECA), Pacific Bell and Nevada Bell, 
and SBC.
---------------------------------------------------------------------------

    131. In response to our invitation to propose efficient and 
equitable methodologies for assessing the carrier fee several 
commenters support adoption of a methodology based upon a carrier's 
gross interstate revenues.\38\ These parties contend that fees based on 
a multiplier of each carrier's total gross interstate revenues would 
result in a fair allocation of costs in as competitively neutral a 
manner as possible. Further, they argue a gross revenue assessment 
methodology permits dispensing with assumptions or projections, 
necessary to the implementation of the customer unit and MOU 
methodologies. Moreover, they state that gross interstate revenues are 
widely reported and are readily verifiable by reference to corporate 
tax filings.

    \38\ Parties that support reliance on a methodology to assess 
the fee based on gross interstate revenues include Alltel, 
Ameritech, AT&T, Cablevision Lightpath, GTE Service Corporation 
(GTE), MFS, NECA, National Telephone Cooperative Association (NTCA), 
SBC, Time Warner, U S West, and Teleport Communications Group Inc. 
(Teleport).
---------------------------------------------------------------------------

    132. Several parties support a revenue-based fee calculation 
because it would permit the assessment of fees on the basis of data 
that could be compiled by carriers in a manner similar to our 
methodology for funding the Telecommunications Relay Service (TRS). 
NECA states that the TRS model would ensure that the carriers subject 
to the fee would be equitably charged through use of an interstate 
revenue 

[[Page 34020]]
basis, easily administered and based on externally verifiable data. 
Further, according to NECA, the TRS mechanism would permit the 
allocation of fees to special access services without administrative 
difficulty because exchange carriers could base their fees on submitted 
TRS data. Resellers supporting assessment of the fee by gross revenues 
urge that we permit carriers to reduce their fee payments by the amount 
that they pay to other carriers for facilities and services in order to 
avoid double payment of the fee.
    133. MCI and Sprint oppose assessing fees based on gross interstate 
revenues. MCI contends that the revenue method is flawed because it is 
the byproduct of a carrier's minutes of use and, therefore, may 
fluctuate greatly and be unrepresentative of a carrier's market 
presence. For its part, Sprint contends that the term ``gross 
revenues'' is open to several definitions and that revenue figures are 
more subject to revision than presubscribed line counts that could 
necessitate delay, or shortfalls, in the collection of fees.
    134. After considering the arguments of the many commenters in this 
proceeding, we have decided to adopt a gross revenues methodology for 
assessing carrier fees. A revenue based allocation will effectively 
spread the cost recovery burden of the fee requirement in proportion to 
the benefits realized by those carriers subject to our jurisdiction. We 
find that assessing fees by interstate gross revenues is reasonably 
related to the benefits of the regulation that these carriers receive. 
Properly administered, a gross revenues methodology will ease 
administrative burdens of carriers in calculating fee payments, provide 
reliable and verifiable information upon which to calculate the fee and 
equitably distribute the fee requirement in a competitively neutral 
manner. Interstate revenues are widely reported and more easily 
verifiable than customer units or MOUs and, therefore, avoid the need 
for burdensome reporting requirements. A revenue based methodology 
avoids the calculation problems inherent in both the customer unit and 
minutes of use alternative and permits the assessment of fees without 
any need to rely upon assumptions and projections.
    135. We will require non-mobile common carriers, including 
resellers, that provide interstate telecommunications services to 
calculate their fee payments based upon their proportionate share of 
gross interstate revenues using the methodology that we have adopted 
for carriers to calculate their contributions to the TRS fund.\39\ 
Interstate revenue data is already reported to NECA due to its role as 
administrator of the TRS fund.\40\ In order to avoid imposing a double 
payment burden on resellers, we will permit interexchange carriers to 
subtract from their reported gross interstate revenues any payments 
made to underlying carriers for telecommunications facilities or 
services. This would include payments for interstate access services. 
It should be emphasized that the assessment and collection of 
regulatory fees is a Commission activity, totally separate and apart 
from TRS funding. However, we intend that carriers subject to payment 
of regulatory fees calculate and file their fees consistent with the 
TRS methodology, as modified by Public Notice to be published in the 
Federal Register. The FY 1995 revenue requirement is $46,310,880, and 
the total TRS revenue is estimated to be $52,626,000,000, resulting in 
a fee of 0.00088 per TRS revenue dollar.\41\ See Guidelines, Appendix H 
at Paras. 42-44.

    \39\ See Telecommunications Relay Services, 8 FCC Rcd 5300 
(1993), 58 FR 39671 (1993).
    \40\ Pursuant to our FY 1994 Order, NECA acted as our payment 
agent for approximately 800 exchange carriers who elected to make 
their fee payments through NECA. We are instructing the Managing 
Director to determine what, if any, assistance NECA may provide in 
the collection of regulatory fees for FY 1995.
    \41\ For FY 1995, we are limiting the use of gross revenues to 
assess fees on providers of communications services, including 
resellers, using the interstate network. It is our intention to 
monitor and analyze the reliance on gross revenues, and if our 
experience shows that this methodology results in an equitable and 
readily administered fee structure, we will consider reliance on 
gross revenues as the mechanism for determining fees for other 
carriers, including mobile carriers, for FY 1996 and thereafter.
---------------------------------------------------------------------------

    136. On October 7, 1994, the Common Carrier Bureau, on its own 
motion, issued a waiver permitting price cap regulated common carriers 
to treat the initial assessment of regulatory fees and any subsequent 
changes in the level of the fees paid, either as a result of Commission 
modification of the fee schedule, or due to increases or decreases in 
the number of presubscribed or access lines on which the fees must be 
paid, as an exogenous cost by making appropriate adjustments to their 
price cap indexes. Price Cap Treatment of Regulatory Fees Imposed by 
Section 9 of the Act, 9 FCC Rcd 6060 (Com. Car. Bur., 1994), Erratum, 9 
FCC Rcd 6487 (Com. Car. Bur., 1994). MCI Telecommunications Inc. (MCI) 
filed a petition for reconsideration of that decision on November 7, 
1994. In that petition, as well as in comments in this proceeding, MCI 
requests that the Commission reverse the Bureau regulatory fees order 
and require LECs to file for a waiver of the exogenous costs rules. In 
support of its petition, MCI alleges that the Common Carrier Bureau 
failed to follow Commission procedures requiring the LECs to file for 
waivers of the exogenous cost rules, shifted the burden of proof from 
the LECS, lacked a record on which to make a decision, and prejudged 
the petitions for reconsideration that were filed on the original 
regulatory fees order. Several LECs opposed the MCI petition.
    137. MCI has not presented any evidence that would undermine the 
Bureau's conclusion that the Section 9 regulatory fees meet our 
criteria for exogenous cost treatment. As explained in the Bureau 
order, regulatory fees imposed pursuant to Section 9 of the Act are a 
legislatively-imposed charge on telecommunications common carriers, the 
imposition of which is beyond the control of the carrier. Moreover, MCI 
has not shown that the grant of the waiver sua sponte violates any 
Commission rules or procedures. In fact, Section 1.3 of the 
Commission's rules specifically authorizes grant of waivers sua sponte. 
Accordingly, MCI's petition seeking reconsideration of the Bureau's 
order is denied. In addition, we take this opportunity to clarify that 
carriers subject to price caps may file tariffs reflecting the effects 
of Commission-mandated changes in the regulatory fee schedule after the 
annual tariff filing is due. See LEC Price Cap Performance Review at 
para. 317.

B. Procedures for Payment of Regulatory Fees

    138. Generally, as proposed in the Notice, we are retaining the 
procedures established in our FY 94 Order for the payment of regulatory 
fees. Consistent with Section 9(f) of the Act, we are again providing 
for 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. 47 U.S.C. Sec. 159(f). The fee categories are (1) ``standard'' 
fees, (2) ``large'' fees, and (3) ``small'' fees.
1. Annual Payments of Standard Fees
    139. Standard fees are those regulatory fees that are payable in 
full on an annual basis. Payers of standard fees are not required to 
make advance payments for their full license term. All standard fees 
are payable in full on the date we establish for payment of fees in 
their regulatory fee category. The payment dates for each regulatory 
fee category will be announced by public notice in the Federal Register 
following the termination of this proceeding.

[[Page 34021]]

2. Installment Payments for Large Fees
    140. Our Notice proposed that regulatees in any category of service 
with a payment due of $12,000 or greater would be eligible to pay their 
fees in two installments. However, as a practical matter since the time 
for collecting fees will be extremely limited, regulatees subject to a 
fee will be required to submit their fees on a single date. In most 
instances, the requirement to submit a single payment should work no 
hardship since regulatees will have had no less than ninety days notice 
of the amount of their fee requirement and the use of these funds 
throughout substantially the entire fiscal year.\42\

    \42\ Section 8(b)(4)(B) provides for notification to Congress 
ninety days before permitted amendments to the Schedule of 
Regulatory Fees become effective. 47 U.S.C. Sec. 159(b)(4)(B).
---------------------------------------------------------------------------

3. Advance Payments of Small Fees
    141. As proposed in the Notice, we will again treat regulatory fee 
payments by certain radio licensees as small fees subject to advance 
payments. Advance payments will be required from licensees of those 
services that we decided would be subject to advance payments in our FY 
1994 Order \43\ Payers of advance fees will submit the entire fee due 
for the full term of their licenses when filing their initial, 
reinstatement or renewal application. Those subject to the fee must pay 
the amount due for the current fiscal year multiplied by the number of 
years in the term of their requested license. The payor would not be 
subject to the payment of a new fee until filing an application for 
renewal or reinstatement of the license. Thus, payment for the full 
license term would be made based upon the regulatory fee applicable at 
the time the application is filed. Refunds will not be made in cases 
where the fee for a service is lower for FY 1995 than the fee paid 
under the FY 1994 fee schedule. The Commission will announce by public 
notice in the Federal Register the effective date for the payment of 
small fees pursuant to the FY 1995 fee schedule.

    \43\ Advance payments are required from applicants for new, 
renewal and reinstatement licenses in services which pay annual fees 
of $6 or less and are listed in the Wireless Radio category of the 
Regulatory Fee Schedule. See Appendix B.
---------------------------------------------------------------------------

4. Timing of Standard Fee Calculations and Payment Dates
    142. As noted, the date for payment of standard fees will be 
published in the Federal Register. For licensees, permittees and 
holders of other authorizations in the Common Carrier, Mass Media, and 
Cable Services, whose fees are not based on a subscriber, unit or 
circuit count, fees should be submitted for any authorization held as 
of October 1, 1994. As in our FY 1994 Order, we are establishing 
October 1 as the date to be used for calculating standard fees since it 
is the first day of the fiscal year and, therefore, current licensees 
subject to the fees would have benefited from our regulatory activities 
from the beginning of the period covered by the payment.
    143. In the case of regulatees whose fees are based upon a 
subscriber, unit or circuit count, the number of a regulatee's, 
subscribers, licenses or circuits on December 31, 1994, will be used to 
calculate the fee payment. We have selected the last date of the 
calendar year because many of these entities file reports with us as of 
that date. Others calculate their subscriber numbers as of that date 
for internal purposes. Therefore, calculation of the regulatory fee as 
of that date will facilitate both an entity's computation of its fee 
payment and our verification that the correct fee payment has been 
submitted.\44\

    \44\ Cable systems should calculate their FY 1995 regulatory 
fees using the subscriber data to be submitted to the Commission in 
their 1994 Annual Report of Cable Television Systems (FCC Form 325). 
Accordingly, their number of subscribers will not necessarily be 
based on December 31, 1994, but rather on ``a typical day in the 
last full week'' of December 1994. (See FCC Form 325 Instructions).
C. Ordering Clauses

    144. Accordingly, it is ordered that the rule changes as specified 
below are adopted.
    145. It is further ordered that the rule changes made herein will 
become effective September 18, 1995. This action is taken pursuant to 
Sections 4(i), 4(j), 9, and 303(r) of the Communications Act of 1934 as 
amended, 47 U.S.C. Secs. 154(i) and 154(j) and 159 and 303(r).
    146. It is further ordered that the petition for reconsideration 
filed by MCI Telecommunications Inc. is denied.

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure, Communication common 
carriers, Radio, Telecommunications, Television.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Appendix A--Regulatory Flexibility Analysis

Need and Purpose for This Action

    This Report and Order adopts a Schedule of Regulatory Fees in 
order to collect $116,400,000, the amount that Congress has required 
the Commission to recover through regulatory fees for FY 1995. The 
Report and Order seeks to ease the burden of compliance with the fee 
requirement by increasing estimated payment units, where 
appropriate, and by revising methodologies for assessing fees to 
better assure that fee payments are reasonably related to the 
benefits that regulatees derive from the Commission's regulation. 
The Commission has also reduced the threshold payment amounts for 
eligibility for installment payments.

Summary of Comments.

    America's Carriers Telecommunications Association (ACTA) argues 
that proposals set forth in the Notice of Proposed Rulemaking would 
adversely impact on resale carriers, contending that the proposed 
fee would double the fee for interstate exchange carriers, including 
resellers and other carriers newly subject to the fee. Further, ACTA 
contends that resales carriers would be subject to a `'double fee 
payment'' because resellers would pay the fee directly and also be 
charged the fee by facilities-based carriers from whom they obtain 
facilities and services.

Proposals Adopted

    In response to comments by numerous parties, the Commission 
rejected the methodologies for assessing fees for interstate 
carriers set forth in the Notice of Proposed Rulemaking. Instead, 
the Commission has adopted a methodology for assessing fees based 
upon a carrier's gross interstate communications revenues, similar 
to the method that the Commission adopted for calculating carrier 
contributions to the fund for the Telecommunications Relay Services 
(TRS). The Commission found that the TRS methodology provides an 
efficient and equitable mechanism for assessing fees. Carriers 
subject to the fee would not be unduly burdened because they already 
report the information needed to calculate the fee to the National 
Exchange Carriers Association (NECA), the administrator of the TRS 
fund. Moreover, the Commission has eliminated the ``double fee 
payment'' of concern to ACTA by permitting resale carriers to 
subtract from their reported gross revenues any payments made for 
facilities and services to facilities-based carriers.
Appendix B--FY 1995 Schedule of Regulatory Fees

------------------------------------------------------------------------
                                                                Annual  
                        Fee category                          regulatory
                                                                  fee   
------------------------------------------------------------------------
                             Wireless Radio                             
                                                                        
------------------------------------------------------------------------
Land Mobile (per license) 220-222 Mhz, above 470 Mhz, Base              
 Station and SMRS) (47 CFR Part 90).........................          6 
Microwave (per license) (47 CFR Part 94)....................          6 
Interactive Video Data Service (per license) (47 CFR Part               
 95)........................................................          6 
Marine (Ship) (per station) (47 CFR Part 80)................          3 

[[Page 34022]]
                                                                        
Marine (Coast) (per license) (47 CFR Part 87)...............          3 
General Mobile Radio Service (per license) (47 CFR Part 95).          3 
Land Mobile (per license) (all stations not covered above)..          3 
Aviation (Aircraft) (per station) (47 CFR Part 87)..........          3 
Aviation (Ground) (per license) (47 CFR Part 87)............          3 
Amateur Vanity Call Signs (per call sign) (47 CFR Part 97)..          3 
Cellular (per unit) (47 CFR Part 22)........................        .15 
Public Mobile Radio (per unit) (47 CFR Part 22).............        .15 
Public Mobile One-Way Paging (per unit) (47 CFR Part 22)....        .02 
------------------------------------------------------------------------
                                                                        
                               Mass Media                               
                                                                        
------------------------------------------------------------------------
                                                                        
AM Radio (47 CFR Part 73):                                              
  Class A...................................................      1,120 
  Class B...................................................        620 
  Class C...................................................        250 
  Class D...................................................        310 
  Construction Permits......................................        125 
FM Radio (47 CFR Part 73):                                              
   Classes C, C1, C2, B.....................................      1,120 
  Classes A, B1, C3.........................................        745 
  Construction Permits......................................        620 
TV (47 CFR Part 73) VHF Commercial:                                     
  Markets 1-10..............................................     22,420 
  Markets 11-25.............................................     19,925 
  Markets 26-50.............................................     14,950 
  Markets 51-100............................................      9,975 
  Remaining Markets.........................................      6,225 
  Construction Permits......................................      4,975 
TV (47 CFR Part 73) UHF Commercial:                                     
  Markets 1-10..............................................     17,925 
  Markets 11-25.............................................     15,950 
  Markets 26-50.............................................     11,950 
  Markets 51-100............................................      7,975 
  Remaining Markets.........................................      4,975 
  Construction Permits......................................      3,975 
Satellite Television Stations (All Markets).................        620 
Construction Permits--Satellite Television Stations.........        225 
Low Power TV, TV/FM Translators & Boosters (47 CFR Part 74).        170 
Broadcast Auxiliary (47 CFR Part 74)........................         30 
Multipoint Distribution Service (per call sign) (47 CFR Part            
 21)........................................................        140 
------------------------------------------------------------------------
                                                                        
                            Cable Television                            
                                                                        
------------------------------------------------------------------------
                                                                        
Cable Antenna Relay Service (47 CFR Part 78)................        290 
Cable Television Systems (per subscriber) (47 CFR Part 76)..        .49 
------------------------------------------------------------------------
                                                                        
                             Common Carrier                             
                                                                        
------------------------------------------------------------------------
                                                                        
Inter-Exchange Carrier (per revenue dollar).................     .00088 
Local Exchange Carrier (per revenue dollar).................     .00088 
Competitive Access Provider (per revenue dollar)............     .00088 
Operator Service Provider/Pay Telephone Operators (per                  
 revenue dollar)............................................     .00088 
Resellers (per revenue dollar)..............................     .00088 
Other Interstate Providers (per revenue dollar).............     .00088 
Domestic Public Fixed (per call sign) (47 CFR Part 21)......        140 
------------------------------------------------------------------------
                                                                        
                              International                             
                                                                        
------------------------------------------------------------------------
                                                                        
Earth Stations (47 CFR Part 25):                                        
  VSATs/Equivalent C-Band/Mobile Earth Stations (per                    
   authorization or registration)...........................        330 
  Transmit/Receive and Transmit Only Earth Stations (per                
   authorization or registration)...........................        330 
Space Stations (per operational station in geosynchronous               
 orbit) (47 CFR Part 25)....................................     75,000 
International Circuits (per active 64KB circuit)............          4 
International Public Fixed (per call sign) (47 CFR Part 23).        200 
International (HF) Broadcast (47 CFR Part 73)...............        250 
------------------------------------------------------------------------


Appendix C--How Full Time Equivalents (FTEs) and Fee Category Cost 
Allocations Were Calculated

    (1) FTE allocations represent how the Commission anticipates 
FTEs will actually be spent during the course of the fiscal 
year.\45\ Many factors influence how FTEs are actually employed 
during the year, including varying rates of attribution, speed of 
hiring new and replacement staff, the use of part time or temporary 
employees in lieu of permanent staff, changing Commission 
priorities, and reorganizations and other activities requiring a 
reallocation or reassignment of staff. The FTE allocations used in 
the fee development process were updated as of December 1994 to 
reflect a number of personnel reassignments made incident to recent 
reorganizations within the Commission. The impact on the fee 
development process by the reorganizations is negligible since they 
have not significantly changed the type of work the reassigned staff 
is performing.\46\

    \45\ It should be noted that FTE allocations are year-end 
estimates and thus represent projected work time of existing staff 
as well as new and replacement staff yet to be hired. The Office of 
Management and Budget (OMB) has established a ceiling of 2,271 FTEs 
for the Commission for FY 1995.
    \46\ The Commission has chosen to retain, for fee determination 
purposes, the fee classifications (i.e., Private Radio, Common 
Carrier, Cable Services and Mass Media) contained in 47 U.S.C. 
Section 159. Although we believe that we have authority to change 
the classifications to align them more closely with our current 
organizational structure, we wanted to prevent any adverse impacts 
to the schedule brought about solely by such a classification 
change.
---------------------------------------------------------------------------

    (2) Only the Commission's enforcement, policy and rulemaking, 
international, and user information activities are covered by the 
regulatory fee program.\47\ Of the Commission's total ceiling of 
2,271 FTEs, 846 FTEs are directly assigned to the agency's primary 
operating bureaus to perform enforcement, policy and rulemaking 
international, and user information activities. An additional 560 
FTEs have been identified by agency officials as supporting these 
feeable activities.\48\ The result of our FTE allocations are as 
follows:

    \47\ The regulatory fee program encompasses a total of 1,406 
FTEs or 61.9% of the agency's total FTEs. The agency's Authorization 
of Service, Legal Services and Executive Direction Activities cover 
an additional 865 FTEs. See Section III (A) for a discussion of how 
FTEs were estimated. Authorization of Service regulatory costs are 
recovered pursuant to Section 8 of the Communications Act.
    \48\ These support activities include a proportionate share of 
field operations, engineering and technology and certain general 
program support staff FTEs.

------------------------------------------------------------------------
                                                Direct  Support   Total 
                 Fee Category                    FTEs     FTEs     FTEs 
------------------------------------------------------------------------
Mass Media...................................      152      101      253
Common Carrier...............................      415      274      689
Private Radio................................       62       41      103
Cable Services...............................      217      144      361
                                              --------------------------
  Total......................................      846      704     1406
------------------------------------------------------------------------

    (3) The total of the costs to be offset by regulatory fees in FY 
1995 is $116,400,000. Each fee category (e.g., cable services) was 
allocated its share of regulatory fee activity costs based upon the 
ratio of its FTEs to the total number of FTEs allocated to all 
regulatory fee categories. The results of this allocation of costs 
are shown below:

------------------------------------------------------------------------
                                                                 Cost   
                                              Regulatory Fee  allocation
            Fee Category               FTEs     Percentage        (in   
                                                   \49\        millions)
------------------------------------------------------------------------
Mass Media.........................      253         18.0         $21.0 
Common Carrier.....................      689         49.0          57.0 
Private Radio......................      103          7.3           8.5 
Cable Services.....................      361         25.7          29.9 
                                    ------------------------------------
  Total............................     1406       100.00         116.4 
------------------------------------------------------------------------
\49\ These percentages represent the FTEs associated with regulatory    
  fees only. As a percent of all FCC FTEs, the regulatory fee FTEs make 
  up the following percentages: Mass Media (11.1%), Common Carrier      
  (30.3%), Private Radio (4.5%) and Cable Services (15.9%).             

Appendix D--Development of Private Radio Services Regulatory Fees

    Activity Cost Allocation: The Private Radio Activity was 
allocated 7.3% (103 FTEs) of the total 1,406 FTEs associated with 
all regulatory fee activities.\50\ The same percentage (7.3%) was 
applied to total regulatory fee activity costs ($116.4 million times 
7.3%=$8.5 million).

[[Page 34023]]


    \50\ Represents 4.5% of all FCC FTEs.
---------------------------------------------------------------------------

    Revision of Payment Unit Volumes: Payment volume estimates 
(units of payment) were updated for FY 1995. See Table #1 below.
    Projected Revenue Using FY 1994 Fee Amounts & Revised FY 1995 
Payment Volumes: Projected revenue for FY 1995 for Private Radio 
Activities using FY 1994 fee amounts was calculated by multiplying 
the FY 1995 payment volume in each fee category by the FY 1994 fee 
amounts. The resulting revenues in these categories totaled 
approximately $21.7 million. This is the amount of revenue we would 
collect in this category if we did not change any fee amounts from 
FY 1994.
    Pro-Rata Application of FY 1995 Revenue Requirement: Because 
projected revenues using FY 1994 fee amounts would have resulted in 
excess collections of $13.2 million ($21.7 million minus $8.5 
million), Private Radio fees for FY 1995 needed to be multiplied by 
39% ($8.5 million divided by $21.7 million=39%)\51\ so that revenue 
would better approximate the $8.5 million cost allocation for this 
Activity. Table #1 below shows revenue requirements that were 
computed for each fee category within the Private Radio Activity.

    \51\ Actual percentage is 39.2368026%.
---------------------------------------------------------------------------

    Calculation of Fee: We divided each of the individual revenue 
requirements shown in the chart below by the applicable license term 
and then divided that result by the FY 1995 projected payment volume 
to determine the new fee requirement for each fee category within 
the Private Radio Activity.

                                Table #1                                
------------------------------------------------------------------------
                                    Divided by   Divided by             
      Category          Revenue      license      payment     Equals new
                      requirement   term (Yrs)     volume      fee \52\ 
------------------------------------------------------------------------
Land Mobile (220-222                                                    
 MHz, 470 MHz and                                                       
 above, unless                                                          
 otherwise noted)...     $396,390            5       13,213            6
Microwave...........      193,200            5        6,440            6
IVDS................       43,500            5        1,450            6
Marine (Ship).......    5,070,420           10      169,014            3
GMRS................       41,775            5        2,785            3
Land Mobile (Other).    1,396,275            5       93,085            3
Aviation (Aircraft).    1,130,430           10       37,681            3
Marine (Coast)......       41,955            5        2,797            3
Aviation (Ground)...       39,900            5        2,660            3
Amateur Vanity Call                                                     
 Signs..............      840,000           10       28,000            3
                     -------------                                      
Total...............    8,500,000                                       
------------------------------------------------------------------------
\52\ Fees are rounded to the nearest dollar. On subsequent tables the   
  fees have been rounded pursuant to the requirements of 47 U.S.C. Sec. 
  159.                                                                  

Appendix E--Development of Mass Media Services Regulatory Fees

    Activity Cost Allocation: The Mass Media Activity was allocated 
18.0% (253 FTEs) of the total 1,406 FTEs associated with all 
regulatory fee activities.\53\ The same percentage (18.0%) was 
applied to total regulatory fee activity costs ($116.4 million times 
18.0% = $21.0 million).

    \53\ Represents 11.1% of all FCC FTEs.
---------------------------------------------------------------------------

    Revision of Payment Unit Volumes: Payment volume estimates 
(units of payment) were updated for FY 1995. See Table #2 below.
    Projected Revenue Using FY 1994 Fee Amounts & Revised FY 1995 
Payment Volumes: Projected revenue for FY 1995 for Mass Media 
Activities using FY 1994 fee amounts was calculated by multiplying 
the FY 1995 payment volume in each fee category by the FY 1994 fee 
amounts. The resulting total revenue in these categories totaled 
approximately $16.9 million. This is the amount of revenue we would 
collect in this category if we did not change any fee amounts from 
FY 1994.
    Pro-Rata Application of FY 1995 Revenue Requirement: Because 
projected revenues using FY 1994 fee amounts would have resulted in 
collections of $4.1 million less than required ($21.0 million minus 
$16.9 million), Mass Media fees for FY 1995 needed to be adjusted 
upward by 24.6% ($4.1 million divided by $16.9 million=24.6%) \54\ 
so that revenue would better approximate the $21.0 million cost 
allocation for this Activity. Table #2 below shows revenue 
requirements that were computed for each fee category within the 
Mass Media Activity.

    \54\ Actual percentage is 24.5691982%.
---------------------------------------------------------------------------

    Calculation of Fee: We divided each of the individual revenue 
requirements shown in the chart below by the FY 1995 projected 
payment volume to determine the new fee requirement for each fee 
category within the Mass Media Activity.

                                Table #2                                
------------------------------------------------------------------------
                                                 Divided by             
             Category                Revenue      payment     Equals new
                                   requirement     volume        fee    
------------------------------------------------------------------------
AM Radio (Class A)...............      $86,240           77        1,120
AM Radio (Class B)...............    1,060,820        1,711          620
AM Radio (Class C)...............      258,250        1,033          250
AM Radio (Class D)...............      657,200        2,120          310
AM Radio (Construction Permit)...        9,875           79          125
FM Radio (Classes C, C1, C2, B)..    2,778,720        2,481        1,125
FM Radio (Classes A, B1, C3).....    1,926,570        2,586          745
FM Radio (Construction Permit)...      435,860          703          620
VHF TV (Mkt 1-10)................      964,060           43       22,420
VHF TV (Mkt 11-25)...............    1,135,725           57       19,925
VHF TV (Mkt 26-50)...............    1,166,100           78       14,950
VHF TV (Mkt 51-100)..............    1,007,475          101        9,975
VHF TV (Remaining Mkts)..........    1,045,800          168        6,225
VHF TV (Construction Permit).....       54,725           11        4,975
UHF TV (Mkt 1-10)................    1,541,550           86       17,925
UHF TV (Mkt 11-25)...............    1,164,350           73       15,950
UHF TV (Mkt 26-50)...............    1,087,450           91       11,950
UHF TV (Mkt 51-100)..............    1,084,600          136        7,975
UHF TV (Remaining Mkts)..........      731,325          147        4,975
UHF TV (Construction Permit).....      576,375          145        3,975
Auxiliaries......................      900,000       30,000           30
LPTV/FM & TV Translators &                                              
 Boosters........................    1,210,400        7,120          170
Int'l Short Wave.................        4,750           19          250
TV Satellite (Any Mkt) \55\......       68,200          110          620
TV Satellite (Construction                                              
 Permit) \56\....................        1,125            5          225
Multipoint Distribution Service                                         
 \57\............................  ...........  ...........          140
      Total......................   21,000,000                          
------------------------------------------------------------------------
\55\ The FY 1994 legislated fee schedule did not distinguish between    
  full service television stations and satellite television stations.   
  Although the Congress did not pass final legislation to assess        
  satellite stations a reduced fee, the House of Representatives did    
  pass legislation establishing a $500 fee for satellite stations in FY 
  1994. While not legally binding, we used the $500 fee proposed by the 
  House as a ``simulated'' FY 1994 fee in order to calculate a FY 1995  
  fee for satellite stations.                                           
\56\ Unlike other fees proposed for FY 1995, the TV satellite station   
  construction permit fee of $225 was determined by taking the average  
  fee for UHF & VHF television stations and relating it to the average  
  UHF/VHF construction permit fee. Using these relationships for        
  satellite television stations results in a computed fee of $225       
  (rounded to the nearest $5) for satellite television station          
  construction permits.                                                 
\57\ The fee for single-channel and multi-channel Multipoint Disribution
  Service (MDS & MMDS) was developed as part of the Domestic Public     
  Fixed Radio Service, a common carrier service. The payment units are  
  included in the total volume for the Domestic Public Fixed Radio      
  Service included in Appendix C. Regulation of the MDS and MMDS        
  services has been transferred to the Mass Media Bureau.               

Appendix F--Development of Cable Services Regulatory Fees

    Activity Cost Allocation: The Cable Services Activity was 
allocated 25.7% (361 FTEs) of the total 1,406 FTEs associated with 
all regulatory fee activities.\58\ The same percentage (25.7%) was 
applied to total regulatory fee activity costs ($116.4 million times 
25.7%=$29.9 million).

[[Page 34024]]


    \58\ Represents 15.9% of all FCC FTEs.
---------------------------------------------------------------------------

    Revision of Payment Unit Volumes: Payment volume estimates 
(units of payment) were updated for FY 1995. See Table #3 below.
    Projected Revenue Using FY 1994 Fee Amounts & Revised FY 1995 
Payment Volumes: Projected revenue for FY 1995 for Cable Services 
Activities using FY 1994 fee amounts was calculated by multiplying 
the FY 1995 payment volume in each fee category by the FY 1994 fee 
amounts. The resulting total revenue in these categories totaled 
approximately $22.7 million. This is the amount of revenue we would 
collect in this category if we did not change any fee amounts from 
FY 1994.
    Pro-Rata Application of FY 1995 Revenue Requiremetn: Because 
projected revenues using FY 1994 fee amounts would have resulted in 
collections of $7.2 million less than required ($22.7 million minus 
$29.9 million), proposed Cable Services fees for FY 1995 needed to 
be adjusted upward by 32.0% ($7.2 million divided by $22.7 million = 
32.0%) \59\ so that revenue would better approximate the $29.9 
million cost allocation for this Activity. Table #3 below shows 
revenue requirements that were computed for each fee category within 
the Cable Services Activity.

    \59\ Actual percentage is 31.9619879%.
---------------------------------------------------------------------------

    Calculation of Fee: We divided each of the individual revenue 
requirements shown in the chart below by the FY 1995 projected 
payment volume to determine the new fee requirement for each fee 
category within the Cable Services Activity.

                                                    Table #3                                                    
----------------------------------------------------------------------------------------------------------------
                                                              Revenue           Divided by                      
                        Category                            requirement       payment volume     Equals new fee 
----------------------------------------------------------------------------------------------------------------
CARS...................................................           $603,780              2,082                290
Cable Television Systems...............................         29,400,000         60,000,000                .49
                                                        -------------------                                     
    Total..............................................         29,900,000                                      
----------------------------------------------------------------------------------------------------------------

Appendix G--Development of Common Carrier Services Regulatory Fees

    Activity Cost Allocation: The Common Carrier Activity was 
allocated 49.0% (689 FTEs) of the total 1,406 FTEs associated with 
all regulatory fee activities.\60\ The same percentage (49.0%) was 
applied to total regulatory fee activity costs ($116.4 million times 
49.0% = $57.0 million).

    \60\ Represents 30.3% of all FCC FTEs.
---------------------------------------------------------------------------

    Revision of Payment Unit Volumes: Payment volume estimates 
(units of payment) were updated for FY 1995. See Table #4 below.
    Projected Revenue Using FY 1994 Fee Amounts & Revised FY 1995 
Payment Volumes: Projected revenue for FY 1995 for Common Carrier 
Activities using FY 1994 fee amounts was calculated by multiplying 
the FY 1995 payment volume in each fee category by the FY 1994 fee 
amounts. The resulting total revenue in these categories totaled 
approximately $28.4 million. This is the amount of revenue we would 
collect in this category if we did not change any fee amounts from 
FY 1994.
    Pro-Rata Application of FY 1995 Revenue Requirement: Because 
projected revenues using FY 1994 fee amounts would have resulted in 
collections of $28.6 million less than required ($57.0 million minus 
$28.4 million), Common Carrier fees for FY 1995 needed to be 
adjusted upward by 100.5% ($28.6 million divided by $28.4 million = 
100.5%) \6\ so that revenue would better approximate the $57.0 
million cost allocation for this Activity. Table #4 below shows 
revenue requirements that were computed for each fee category within 
the Common Carrier Activity.

    \61\ Actual percentage is 100.4512615%.
---------------------------------------------------------------------------

    Calculation of Fee: We divided each of the individual revenue 
requirements shown in 

[[Page 34025]]
the chart below by the FY 1995 projected payment volume to determine 
the new fee requirement for each fee category within the Common 
Carrier Activity:

                                Table #4                                
------------------------------------------------------------------------
                                Revenue       Divided by      Equals new
          Category            requirement   payment volume       fee    
------------------------------------------------------------------------
Domestic Public Fixed Radio.   $1,960,000            14,000          140
Cellular/Public Mobile Radio    3,510,000        23,400,000          .15
Public Mobile One-way Paging      392,000        19,600,000          .02
International Public Fixed                                              
 Radio......................        4,000                20          200
Earth Stations (VSATs/Mob.                                              
 Eq./Tr. & T/R).............    1,114,740             3,378          330
Space Stations..............    2,925,000                39       75,000
IXC, LEC, CAPS, Other                                                   
 Providers..................   46,310,880    52,626,000,000       .00088
International Circuits......      500,000           125,000            4
                             -------------                              
Total.......................   57,000,000                               
------------------------------------------------------------------------

Appendix H--FY 1995 Guidelines for Regulatory Fee Categories

    1. The guidelines below provide an explanation of regulatory fee 
categories established by the Schedule of Regulatory Fees in Section 
9(g) of the Communications Act, 47 U.S.C. Sec. 159(g) as modified in 
the instant Memorandum Opinion and Order. Where regulatory fee 
categories need interpretations or clarification, we have relied on 
the legislative history of Section 9, our own experience in 
establishing and regulating the Schedule of Regulatory Fees for 
Fiscal Year (FY) 1994 and the services subject to the fee schedule, 
and the comments of the parties in our proceeding to adopt fees for 
FY 1995. The categories and amounts set out in the schedule have 
been modified to reflect changes in the Commission's appropriation, 
our costs of providing the regulatory services to be recovered by 
the fee program, additions and changes in the services subject to 
the fee requirement and the benefits derived from the Commission's 
regulatory activities. The schedule may be similarly modified or 
adjusted in future years to reflect changes in the Commission's 
budget and in the services regulated by the Commission. See 47 
U.S.C. Sec. 159(b) (2), (3).

1. Private Radio Services

    2. The Private Radio Services are regulated by the Wireless 
Telecommunications Bureau. Two levels of statutory fees were 
established--exclusive use services and shared use services. Thus, 
licensees who generally receive a higher quality communication 
channel due to exclusive or lightly shared frequency assignments, 
will pay a higher fee than those who share marginal quality 
assignments. This dichotomy is consistent with the directive of 
section 9 that the regulatory fees reflect the benefits provided to 
the licensees. See 47 U.S.C. Sec. 159(b)(1)(A). In addition, because 
of the generally small amount of the fees assessed against Private 
Radio Service licensees, applicants for new licenses and 
reinstatements and for renewal of existing licenses are required to 
pay a regulatory fee covering the entire license term, with only a 
percentage of all licensees paying a regulatory fee in any one year. 
Applications for modification or assignment of existing 
authorizations do not require the payment of regulatory fees. The 
expiration date of those authorizations will reflect only the 
unexpired term of the underlying license rather than a new license 
term.
    3. There have been no changes from FY 1994 in the rules for 
calculating and paying regulatory fees in the Private Radio 
Services.

a. Exclusive Use Services
    4. Land Mobile Services: Regulatees in this category include 
those authorized under Part 90 of the Commission's Rules to provide 
limited access Wireless Radio service that allows high quality voice 
or digital communications between vehicles or to fixed stations to 
further the business activities of the licensee. These services, 
using the 220-222 MHz band and frequencies at 470 MHz and above, may 
be offered on a private carrier basis in the Specialized Mobile 
Radio Services (SMRS).
    5. For FY 1995, Land Mobile licensees will pay a $6 annual 
regulatory fee per license, payable for an entire five or ten year 
license term at the time of application for a new, renewal or 
reinstatement license.\62\ The total regulatory fee due is either 
$30 for a license with a five year term or $60 for a license with a 
10 year term.

    \62\ Although this fee category includes licenses with ten year 
terms, the estimated volume of ten year license applications in FY 
1995 is less than one tenth of one percent and, therefore, is 
statistically insignificant.
---------------------------------------------------------------------------

    6. Microwave Services: Set forth in the FY 1995 fee schedule 
within the Wireless Radio Service category, these services include 
private microwave systems and private carrier systems authorized 
under Part 94 of the Commission's Rules to provide 
telecommunications services between fixed points on a high quality 
channel of communications. Microwave systems are often used to relay 
data and to control railroad, pipeline and utility equipment. For FY 
1995, Microwave licensees will pay a $6 annual regulatory fee per 
license, payable for an entire five year license term at the time of 
application for a new, reinstatement or renewal license. The total 
regulatory fee due is $30 for the five year license term.
    7. Interactive Video Data Service (IVDS): As set forth in the FY 
1995 fee schedule within the Wireless Radio Service category, IVDS 
is a two-way point-to-multi-point radio service allocated high 
quality channels of communications and authorized under Part 95 of 
the Commission's Rules. IVDS provides information, products and 
services, and also the capability to obtain responses from 
subscribers in a specific service area. IVDS is offered on a private 
carrier basis. For FY 1995, IVDS licensees will pay a $6 annual 
regulatory fee per license, payable for an entire five year license 
term at the time of application for a new, reinstatement or renewal 
license. The total regulatory fee due is $30 for the five year term 
of the license.

b. Shared Use Services

    8. Marine (Ship) Service: This service is a shipboard radio 
service authorized under Part 80 of the Commission's Rules to 
provide telecommunications between watercraft or between watercraft 
and shore-based stations. Radio installations are required by 
domestic and international law for large passenger or cargo vessels. 
Radio equipment may be voluntarily installed on smaller vessels, 
such as recreational boats. For FY 1995, Marine (Ship) Station 
licensees will pay a $3 annual regulatory fee per station, payable 
for an entire ten year license term at the time of application for a 
new, reinstatement or renewal license. The total regulatory fee due 
is $30 for the ten year license term.
    9. Marine (Coast) Service: This service, set forth in the FY 
1995 Schedule of Regulatory Fees within the Wireless Radio Service 
category, includes land-based stations in the maritime services, 
authorized under Part 80 of the Commission's Rules, to provide 
communications services to ships and other watercraft in coastal and 
inland waterways. For FY 1995, licensees will pay a $3 annual 
regulatory fee per call sign, payable for the entire five year 
license term at the time of application for a new, reinstatement or 
renewal license. The total regulatory fee due is $15 per call sign 
for the five year license term.
    10. Private Land Mobile (Other) Services: These services, set 
forth in the FY 1995 Schedule of Regulatory Fees within the Wireless 
Radio Service category, include Land Mobile Radio Services operating 
under Parts 90 and 95 of the Commission's Rules. Services in this 
category provide one or two way communications between vehicles, 
persons or to fixed stations on a shared basis 

[[Page 34026]]
and include radiolocation services, private carrier paging services, 
industrial radio services and land transportation radio services. 
For FY 1995, licensees of services in this category will pay a $3 
annual regulatory fee per call sign, payable for an entire five year 
license term at the time of application for a new, reinstatement or 
renewal license. The total regulatory fee due is $15 for the five 
year license term. There are no changes to the rules for calculating 
and submitting regulatory fee payments by Private Land Mobile 
Service licensees.
    11. Aviation (Aircraft) Service: These services, set forth in 
the FY 1995 Schedule of Regulatory Fees within the Wireless Radio 
Service category, include stations authorized to provide 
communications between aircraft and from aircraft to ground stations 
and includes frequencies used to communicate with air traffic 
control facilities pursuant to Part 87 of the Commission's Rules. 
For FY 1995, licensees of Aviation (Aircraft) Stations will pay a $3 
annual regulatory fee per station, payable for the entire ten year 
license term at the time of application for a new, reinstatement or 
renewal license. The total regulatory fee due is $30 per station for 
the ten year license term.
    12. Aviation (Ground) Service: This service, set forth in the FY 
1995 Schedule of Regulatory Fees within the Wireless Radio Service 
category, includes stations authorized to provide ground-based 
communications to aircraft for weather or landing information, or 
for logistical support pursuant to Part 87 of the Commission's 
Rules. For FY 1995, licensees of Aviation (Ground) Stations will pay 
a $3 annual regulatory fee per license, payable for the entire five 
year license term at the time of application for a new, 
reinstatement or renewal license. The total regulatory fee is $15 
per call sign for the five year license term.
    13. General Mobile Radio Service (GMRS): These services, set 
forth in the FY 1995 Schedule of Regulatory Fees within the Wireless 
Radio Service category, include Land Mobile Radio licensees 
providing personal and limited business communications between 
vehicles or to fixed stations for short-range, two-way 
communications pursuant to Part 95 of the Commission's Rules. For FY 
1995, GMRS licensees will pay a $3 annual regulatory fee per 
license, payable for an entire five year license term at the time of 
application for a new, reinstatement or renewal license. The total 
regulatory fee due is $15 per license for the five year license 
term.

c. Amateur Radio Vanity Call-Signs

    14. Amateur Vanity Call-Signs: As set forth forth in the FY 1995 
Schedule of Regulatory Fees within the Wireless Radio Service 
category, the fee covers voluntary requests for specific call-signs 
in the Amateur Radio Service authorized under part 97 of the 
Commission's Rules. For FY 1995, applicants for Amateur Vanity Call-
Signs will pay a $3 annual regulatory fee per call-sign, payable for 
an entire ten year license term at the time of application for a 
vanity call sign. The total regulatory fee due would be $30 per 
license for the ten year license term.\63\

    \63\ Section 9(h) exempts ``amateur radio operator licenses 
under Part 97 of the Commission's rules (47 CFR Part 97)'' from the 
requirement. However, Section 9(g)'s fee schedule explicitly 
includes ``Amateur vanity call signs'' as a category subject to the 
payment of a regulatory fee.
---------------------------------------------------------------------------

2. Mass Media Bureau

    15. The regulatory fees for the Mass Media fee category apply to 
broadcast licensees and permittees. Noncommercial Educational 
Broadcasters are exempt from the fees.

a. Commercial AM and FM Radio

    16. These categories include licensed Commercial AM (Classes A, 
B, C, and D) and FM (Classes A, B, B1, C, C1, C2, and C3) Radio 
Stations operating under Part 73 of the Commission's Rules. The 
regulatory fees for AM and FM Stations for FY 1995 are as follows:

AM Radio

Class A
$1,120
Class B
620
Class C
250
Class D
310

FM Radio

Classes C, C1, C2, B
$1,120
Classes A, B1, C3
745

b. Construction Permits--Commercial AM Radio
    17. This category includes holders of permits to construct new 
Commercial AM Stations. For FY 1995 permittees will pay a fee $125 
for each permit held. Upon issuance of an operating license, this 
fee would no longer be applicable and licensees would be required to 
pay the applicable fee for the designated class of the station.

c. Construction Permits--Commercial FM Radio

    18. This category includes holders of permits to construct new 
Commercial FM Stations. For FY 1995 permittees will pay a fee of 
$620 for each permit held. Upon issuance of an operating license, 
this fee would no longer be applicable. Instead, licensees would pay 
a regulatory fee based upon the designated class of the station. 
There are no changes in the rules for calculating and submitting 
regulatory fees by FM construction permittees.

d. Commercial Television Stations

    19. This category includes licensed Commercial VHF and UHF 
Television Stations covered under Part 73 of the Commission's Rules, 
except commonly owned Television Satellite Stations, addressed 
separately below. The fees for each category of station are as 
follows:

VHF Markets 1-10
$22,420
VHF Markets 11-25
19,925
VHF Markets 26-50
14,950
VHF Markets 51-100
9,975
VHF Remaining Markets
6,225

UHF Markets 1-10
$17,925
UHF Markets 11-25
15,950
UHF Markets 26-50
11,950
UHF Markets 51-100
7,975
UHF Remaining Markets
4,975

e. Commercial Television Satellite Stations

    20. Commonly owned Television Satellite Stations in any market 
(authorized pursuant to Note 5 of Section 73.3555 of the 
Commission's Rules) that retransmit programming of the primary 
station are assessed a fee of $620 annually. Only those stations 
designated as Television Satellite Stations in the 1994 edition of 
the Television and Cable Factbook are eligible to submit the fee 
applicable to Television Satellite Stations. All other television 
licensees are subject to the regulatory fee payment required for 
their class of station and market.

f. Construction Permits--Commercial VHF Television Stations

    21. This category includes holders of permits to construct new 
Commercial VHF Television Stations. For FY 1995 VHF permittees will 
pay an annual regulatory fee $4,975. Upon issuance of an operating 
license, this fee would no longer be applicable. Instead, licensees 
would pay a fee based upon the designated market of the station.

g. Construction Permits--Commercial UHF Television Stations

    22. This category includes holders of permits to construct new 
VHF Television Stations. For FY 1995 UHF Television permittees will 
pay an annual regulatory fee $3,975. Upon issuance of an operating 
license, this fee would no longer be applicable. Instead, licensees 
would pay a fee based upon the designated market of the station.

h. Construction Permits--Satellite Television Stations

    23. The fee for UHF and VHF Television Satellite Station 
construction permits for FY 1995 is $225. An individual regulatory 
fee payment is to be made for each Television Satellite Station 
construction permit held.

i. Low Power Television, FM Translator and Booster Stations, TV 
Translator and Booster Stations
    24. This category includes Low Power UHF/VHF Television stations 
operating under Part 74 of the Commission's Rules with a transmitter 
power output limited to 0.01 kw for a UHF facility and, generally, 1 
kw for a VHF facility. Low Power Television (LPTV) stations may 
retransmit the programs and signals of a TV Broadcast Station, 
originate programming, and/or operate as a subscription service. 
This category also includes translators and boosters operating under 
Part 74 which rebroadcast the signals of full service stations on a 
frequency different from the parent station (translators) or on the 
same frequency (boosters). We have amended the fee schedule to 
include FM Translator and Booster stations in this fee service 
because we believe these facilities were inadvertently omitted from 
the statutory fee schedule and we are unaware of any reason not to 
establish a fee for these services. We have also received requests 
for waivers of the regulatory fees from operators of community based 
Translators. These Translators are generally not affiliated with 
commercial broadcasters, they are nonprofit, nonprofitable, or only 
marginally profitable, 

[[Page 34027]]
serve small rural communities, and are supported financially by the 
residents of the communities served. We are aware of the 
difficulties these Translators have in paying even minimal 
regulatory fees, and we will address those concerns in the ruling on 
reconsideration of the FY 1994 Order. The stations in this category 
are secondary to full service stations in terms of frequency 
priority. For FY 1995, licensees in this category will pay a 
regulatory fee of $170 for each license held.

j. Broadcast Auxiliary Stations

    25. This category includes licensees of remote pickup stations, 
Aural Broadcast Auxiliary Stations, Television Broadcast Auxiliary 
Stations, and Low Power Auxiliary Stations, authorized under Part 74 
of the Commission's Rules. Auxiliary Stations are generally 
associated with a particular television or radio broadcast station 
or cable television system. For FY 1995 licensees of Commercial 
Auxiliary Stations will pay a $30 annual regulatory fee on a per 
call sign basis.

k. International HF Broadcast (Short Wave)

    26. This category covers International Broadcast Stations 
licensed under Part 73 of the Commission's Rules to operate on 
frequencies in the 5,950 khz to 26,100 Khz range to provide service 
to the general public in foreign countries. The fees for 
International HF Broadcast Stations are set forth in the 
International Service category in the FY 1995 fee schedule. For FY 
1995 International HF Broadcast Stations will pay an annual 
regulatory fee of $250 per station license.

3. Cable Services

a. Cable Television Systems

    27. This category includes operators of Cable Television 
Systems, providing or distributing programming or other services to 
subscribers under Part 76 of the Commission's Rules. For FY 1995 
Cable Systems will pay a regulatory fee of $.49 per subscriber.\64\

    \64\ Cable systems are to pay their regulatory fees on a per 
subscriber basis rather than per 1,000 subscribers as set forth in 
the statutory fee schedule. See FY 1994 Order at para. 100.
---------------------------------------------------------------------------

    28. Payments for Cable Systems are to be made on a per 
subscriber by community unit basis as of December 31, 1994, as 
reported on each Cable System's 1994 Annual Report of Cable Systems 
(FCC Form 325). Cable Systems should determine their subscriber 
numbers by calculating the number of single family dwellings, the 
number of individual households in multiple dwelling units, e.g., 
apartments, condominiums, mobile home parks, etc., paying at the 
basic subscriber rate, the number of bulk rate customers and the 
number of courtesy or fee customers. In order to determine the 
number of bulk rate subscribers, a system should divide its bulk 
rate charge by the annual subscription rate for individual 
households. See FY 1994 Order, Appendix B at para. 31.

b. Cable Antenna Relay Service

    29. This category includes Cable Antenna Relay Service (CARS) 
stations used to transmit television and related audio signals, 
signals of AM and FM Broadcast Stations and cablecasting from the 
point of reception to a terminal point from where the signals are 
distributed to the public by a Cable Television System. For FY 1995, 
licensees will pay an annual regulatory fee of $290 per CARS 
license.

4. Common Carrier Services

a. Mobile Services

    30. Public Mobile/Cellular Radio Services: These services are 
included within the FY 1995 Schedule of Regulatory Fees in the 
Wireless Radio Service category. They include common carriers and 
others (e.g., cellular radio licensees) offering, under Parts 22 and 
24 of the Commission's Rules, a wide variety of land-based or air-
to-ground mobile telephone, paging or data transmission services to 
the public. Licensees include those using radio to provide telephone 
services at fixed locations, such as Basic Exchange 
Telecommunications Radio Services, Rural Radio and Offshore Radio.
    31. For FY 1995, each licensee in the Public Mobile/Cellular 
Radio Services will pay an annual regulatory fee for each mobile or 
cellular unit (mobile or cellular call sign or telephone number), 
including paging units, assigned to its customers, including 
resellers of its services. For FY 1995, the regulatory fee is $.15 
per unit.
    32. Public Mobile One-Way Paging Services: These services are 
included within the FY 1995 Schedule of Regulatory Fees in the 
Wireless Radio Service category. They include common carriers 
offering, under Parts 22 of the Commission's Rules, one-way paging 
services to the public.
    33. For FY 1995, each licensee in the Public Mobile One-Way 
Paging Services will pay an annual regulatory fee for each paging 
unit, assigned to its customers, including resellers of its 
services. For FY 1995, the regulatory fee of $.02 per unit.

b. Fixed Radio Services

    34. Domestic Public Fixed Radio Service: This category includes 
licensees in the Point-to-Point Microwave Radio Service, Local 
Television Transmission Radio Service, Digital Electronic Message 
Service, Multipoint Distribution Service (MDS), and Multichannel 
Multipoint Distribution Service (MMDS), authorized under Part 21 of 
the Commission's Rules to use microwave frequencies for video and 
data distribution within the United States. For FY 1995, Domestic 
Public Fixed Radio Service licensees pay a $140 annual regulatory 
fee per call sign, payable on a specified date to be announced by 
the Commission.
    35. International Public Fixed Radio Service: This fee category 
includes common carriers authorized under Part 23 of the 
Commission's Rules to provide radio communications between the 
United States and a foreign point via microwave or HF troposcatter 
systems, other than satellites and satellite earth stations, but not 
including service between the United States and Mexico and the 
United States and Canada using frequencies above 72 MHz. For FY 
1995, International Public Fixed Radio Service licensees will pay a 
$200 annual regulatory fee per call sign, payable on a specified 
date to be announced by the Commission.

c. VSATs and Equivalent C-Band Stations/Mobile Satellite Earth Stations

    36. VSATs and Equivalent C-Band Stations: This fee category 
includes VSAT Earth Stations and equivalent C-Band Earth Stations 
and antennas and earth station systems comprised of very small 
aperture terminals operating in the 12 and 14 GHz bands and 
providing a variety of communications services to other stations in 
the network. VSAT systems consist of a network of technically-
identical small Fixed-Satellite Earth Stations which often include a 
larger hub station. VSAT Earth Stations and C-Band Equivalent Earth 
Stations are authorized pursuant to Part 25 of the Commission's 
Rules. Mobile Satellite Earth Stations, operating pursuant to Part 
25 of the Commission's Rules under blanket licenses for mobile 
antennas (transceivers), are smaller than one meter and provide 
voice or data communications, including position location 
information for mobile platforms such as cars, buses or trucks. For 
FY 1995, licensees of VSATs and Mobile Satellite Earth Stations will 
pay an annual regulatory fee of $330 per authorization or 
registration.

d. Fixed Satellite Earth Stations

    37. Transmit/Receive and Transmit Only Earth Stations. This 
category includes fixed-satellite transmit/receive and transmit only 
earth station antennas, authorized or registered under Part 25 of 
the Commission's Rules, operated by private and public carriers to 
provide telephone, television, data, and other forms of 
communications. The proposed fees for this fee category are set 
forth in the FY 1995 fee schedule in the International Service 
category. Included in this category are telemetry, tracking, and 
control (TT&C) ear stations and earth station uplinks.
    38. For FY 1995 licensees of transmit/receive and transmit only 
earth stations will pay a fee of $330 per authorization or 
registration.
    39. Received only earth stations. For FY 1995 there is no 
regulatory fee for receive-only earth stations.

e. Space Stations (Geosynchronous)
    40. Geosynchronous Space Stations set forth in the FY 1995 
Schedule of regulatory Fees within the International Service 
category, are domestic and international satellites positioned in 
orbit to remain approximately fixed relative to the earth. They are 
authorized under Part 25 of the Commission's Rules to provide 
communications between satellites and earth stations on a common 
carrier and/or private carrier basis. For FY 1995, entities 
authorized to operate Geosynchronous Space Stations in accordance 
with section 25.120(d) will be assessed an annual regulatory fee of 
$75,000 per operational station in orbit. Payment is required for 
any Geosynchronous Satellite that has been launched and tested and 
is authorized to provide service.

f. International Bearer Circuits

    41. Regulatory fees for International Bearer Circuits are set 
forth in the International Service category in the FY 1995 fee 
schedule. 

[[Page 34028]]
The proposed fee is to be paid by the facilities-based common carrier 
activating the circuit in any transmission facility for the 
provision of service to an end user or resale carrier. Payment of 
the fee for bearer circuits sold on an indefeasible right of use 
(IRU) basis or leased to any customer other than an international 
common carrier authorized by the Commission to provide U.S. 
international common carrier services. Compare FY 1994 Order at 
5367. The fee is based upon active 64 Kbps circuits, or equivalent 
circuits. Under this formulation, 64 Kbps circuits or their 
equivalent will be assessed a fee. Equivalent circuits include the 
64 Kbps circuit equivalent of larger bit stream circuits. For 
example, the 64 Kbps circuit equivalent of a 2.048 Mbps circuit is 
30 64 Kbps circuits. Analog circuits such as 3 and 4 KHz circuits 
used for international service are also included as 64 Kbps 
circuits. However, circuits derived from 64 Kbps circuits by the use 
of digital circuit multiplication systems are not equivalent 64 Kbps 
circuits. Such circuits are not subject to fees. Only the 64 Kbps 
circuit from which they have been derived will be subject to payment 
of a fee. For FY 1995, the regulatory fee is $4.00 for each active 
64 Kbps circuit or equivalent. For analog television channels we 
will assess fees as follows:

------------------------------------------------------------------------
                                                                No. of  
       Analog Television Channel Size in MHz Circuits         equivalent
                                                               64 Kbps  
------------------------------------------------------------------------
36.........................................................          630
24.........................................................          288
18.........................................................          240
------------------------------------------------------------------------

g. Inter-Exchange and Local Exchange Carriers, Competitive Access 
Providers, Pay Telephone Providers, and other Non-Mobile Providers of 
Interstate Service

    42. We have revised the Schedule of Regulatory Fees for carriers 
to include not only IXCs, LECs and CAPs, but also domestic and 
international carriers that provide operator services, WATS, 800, 
900, telex, telegraph, video, other switched, interstate access, 
special access, and alternative access services either by using 
their own facilities or by reselling facilities and services of 
other carriers or telephone carrier holding companies, and companies 
other than traditional local telephone companies that provide 
interstate access services to long distance carriers and other 
customers.
    43. These common carriers, including resellers, must submit fee 
payments based upon their proportionate share of gross interstate 
revenues using the methodology that we have adopted for calculating 
contributions to the TRS fund. See Telecommunications Relay 
Services, 8 FCC Rcd 5300 (1993). In order to avoid imposing any 
double payment burden on resellers, we will permit carriers to 
subtract from their gross interstate revenues as reported to NECA in 
connection with their TRS contribution, any payments made to 
underlying carriers for the telecommunications facilities or 
services, including payments for interstate access service. For FY 
1995, carriers will multiply their gross revenue figure by the 
0.00088 to determine the appropriate fee for this category of 
service and may reduce this amount by the total amount of their 
payments to underlying carriers for telecommunications facilities or 
services.
    44. The FY 1995 revenue requirement for this category is 
$46,310,880. For FY 1995, carriers will multiply their gross revenue 
figure by 0.00088 to determine the appropriate fee for this category 
of service and may reduce this amount by the total amount of their 
payments to underlying carriers for telecommunications facilities or 
services.
Appendix I--Description of FCC Activities

    Executive Direction and Support: Overall policy direction, 
program development and executive direction as provided by the 
Chairman and staff, Commissioners and their staffs and by the 
Managing Director. Also includes support services such as management 
planning, budgeting and financial management, personnel resource 
management, information resources management and ADP operations, 
security, and administrative and office services. Includes the 
activities of the Office of Legislative Affairs and the Office of 
the Inspector General. These costs are not recoverable through 
regulatory fees.
    Legal Services: Legal review and support services including 
matters of administrative law, litigation and adjudication. Includes 
the Office of General Counsel, Office of Administrative Law Judges 
and the Review Board. These costs are not recoverable through 
regulatory fees.
    Authorization of Service: The authorization or licensing of 
radio stations, telecommunications equipment and radio operators. 
Also includes the authorization of common carrier services and 
facilities. These costs are not recoverable through regulatory fees.
    Policy and Rule Making: Formal inquiries, rule making 
proceedings to establish or amend the Commission's rules and 
regulations, action on petitions for rule making and requests for 
rule interpretations or waivers; economic studies and analyses; 
spectrum planning, modeling, propagation-interference analyses and 
allocation; and development of equipment standards. Also includes 
policy and rule making associated with FCC participation in 
international organizations, conferences and negotiations. These 
costs are recoverable through regulatory fees.
    Enforcement: Enforcement of the Commission's rules, regulations 
and authorizations, including investigations, inspections, 
compliance monitoring and sanctions of all types. Also includes the 
receipt and disposition of formal and informal complaints regarding 
common carrier rates and services, the review and acceptance/
rejection of carrier tariffs, and the review, prescription and audit 
of carrier accounting practices. These costs are recoverable through 
regulatory fees.
    International: The preparation for and participation in 
international, regional and bilateral conferences, meetings and 
negotiations; and administration of Commission responsibilities 
under international radio regulations and other treaties, 
conventions and agreements. Also includes activities associated with 
international frequency coordination and notification. These costs 
are recoverable through regulatory fees.
    Public Information Services: The publication and dissemination 
of Commission decisions and actions, and related activities; public 
reference and library services; the duplication and dissemination of 
Commission records and databases; the receipt and disposition of 
public inquiries; consumer, small business and public assistance; 
and public affairs and media relations. These costs are recoverable 
through regulatory fees.
    Comments were filed:
--Dudman Communications Corp.
--Sandra R. Swanson
--Bruce Hood
--KGRR-FM 97.3
--Sierra Cascade Communications
--Coleman Broadcasting Company
--WTIM et al.
--Aircraft Owners and Pilots Association
--Personal Communications Industries Association
--Fant Broadcasting Company
--Grove Cable Co.
--United States Coast Guard
--AllNet Communication Services, Inc.
--MobileMedia Communications
--KVPA
--Sovereign Broadcasting, Inc.
--KVRW-FM
--Northern Broadcasting, Inc.
--PanAmSat Corporation
--Competitive Telecommunications Association
--LDDS Communications, Inc.
--Ameritech
--Cablevision Industries Corp.
--Montana Broadcasters Association
--Century Cellunet, Inc.
--GTE Services Corp.
--Maine Association of Broadcasters
--James P. Wagner
--Livingston Radio Company
--Associated Press
--Frontier Cellular Holding, Inc.
--Sprint Corporation
--De La Hunt Broadcasting
--Cable Telecommunications Association
--Columbia Communications Corp.
--Hertz Technologies, Inc.
--National Cable Television Association, Inc.
--KUSK, Inc.
--Duhamel Broadcasting Enterprises
--Southwestern Bell, Inc.
--EDS Corp.
--Wireless Cable Association International, Inc.
--MCI Telecommunications Corporation
--MFS Communications Company, Inc.
--AllTell Mobile Communications
--America's Carriers Telecommunications Association
--Mid-State Television, Inc.
--Whithers Broadcasting Company of Texas, el al.
--National Association of Broadcasters
--American Public Communications Council
--Radio 840, Inc.
--Teleport Communication's Group, Inc.
--Bell Atlantic

[[Page 34029]]

--Cellular Telecommunications Industry Association
--Comsat General Corp.
--NYNEX companies
--Association for Local TeleCommunications Services
--Telecommunications Resellers Association
--Broadcast Media Associates
--National Exchange Carriers Association, Inc.
--Cablevision Lightpath, Inc.
--Beaverkettle Company
--Comsat Video Enterprises
--Stellar Communications
--Bloomington Broadcasting
--Washington Broadcasting Company
--American Radio Relay League
--U.S. West Communications
--AT&T
--WPKR Radio
--GE American Communications
--Avis Rent A Car
--Airtouch Paging
--Thomas Clements
--KBZQ-FM
--C&S Radio-South Fork L.P.
--National Cable Television Assocation

    Reply pleadings were filed by:

--WNAL-TV
--Southwestern Bell Corporation
--Vanguard Cellular Systems, Inc.
--Telecommunications Resellers Association
--National Cable Television Association
--Bell Atlantic
--MCI Telecommunications Corporation
--Personal Communications
--*Columbia Communications
--Sprint Corporation
--*National Wireless Resellers
--*Directv
--LDDS Communications, Inc.
--Time Warner Corporation
--GE American Communications
--Arch Communications Group
--Airtouch Paging
--Alltel Mobile Corporation
--National Association of Broadcasters
--Pacific Bell and Nevada Bell
--Paging Newtwork, Inc.
--AT&T
--Small Cable Business Association
--Ameritech
--NFS Communications Company
--*Comsat
--GTE
--Metrocall, Inc.
--KUSK, Inc.
--Pabamasat Corporation
--Columbia Communications
--American Public Communications Council

______________

    *Parties also filed comments.
Rule Changes

    47 CFR Part 1 is amended as follows:

PART 1--PRACTICE AND PROCEDURE

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

    Authority: Sec. 5, 48 Stat. 1068, as amended; 47 U.S.C. 155, 
225, unless otherwise noted.

    2. 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       Fee                                 
            license)              amount              Address           
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz,                                          
 Base Station & SMRS) (47 CFR,                                          
 Part 90):                                                              
  (a) 800 MHz: New, Renewal,        $600  FCC, 800 MHz, P.O. Box 358235,
   Reinstatement (FCC 574).                Pittsburgh, PA, 15251-5235.  
  (b) 900 MHz New, Renewal,         6.00  FCC, 900 MHz, P.O. Box 358240,
   Reinstatement (FCC 574).                Pittsburgh, PA, 15251-5240.  
  (c) 470-512, 800, 900, 220        6.00  FCC, 470-512, P.O. Box 358245,
   MHz, 220 MHz Nationwide:                Pittsburgh, PA, 15251-5245.  
   Renewal (FCC 574R, FCC 405A).                                        
  (d) Correspondence: Blanket       6.00  FCC, Corres., P.O. Box 358305,
   Renewal (470-512, 800, 900,             Pittsburgh, PA, 15251-5305.  
   220 MHz) (Remittance Advice,                                         
   Correspondence).                                                     
  (e) 220 MHz: New, Renewal,        6.00  FCC, 220 MHz, P.O. Box 358360,
   Reinstatement (FCC 574).                Pittsburgh, PA, 15251-5360.  
  (f) 470-512 MHz: New,             6.00  FCC, 470-512, P.O. Box 358810,
   Renewal, Reinstatement (FCC             Pittsburgh, PA, 15251-5810.  
   574).                                                                
  (g) MHz Nationwide: New,          6.00  FCC, Nationwide, P.O. Box     
   Renewal, Reinstatement.                 358820, Pittsburgh, PA, 15251-
                                           5820.                        
2. Microwave (47 CFR Pt. 94):                                           
  (a) Microwave: New, Renewal,      6.00  FCC, FCC, Microwave, P.O. Box 
   Reinstatement (FCC 402).                358250, Pittsburgh, PA 15251-
                                           5250.                        
  (b) Microwave: Renewal (FCC       6.00  FCC, Microwave, P.O. Box      
   402R).                                  358255, Pittsburgh, PA 15251-
                                           5255.                        
  (c) Correspondence: Blank         6.00  FCC, Corres., P.O. Box 358305,
   Renewal (Microwave)                     Pittsburgh, PA, 15251-5305.  
   (Remittance Advice,                                                  
   Correspondence).                                                     
3. Interactive Video Data                                               
 Service:                                                               
  (a) IVDS: Renewal (FCC 574R,      6.00  FCC, IVDS, P.O. Box 358245,   
   FCC 405A).                              Pittsburgh, PA 15251-5245.   
  (b) Correspondence: Blanket       6.00  FCC, Corres., P.O. Box 358305,
   Renewal (IVDS) (Remittance              Pittsburgh, PA, 15251-5305.  
   Advice, Correspondence).                                             
  (c) IVDS: New, Renewal            6.00  FCC, IVDS, P.O. Box 358365,   
   Reinstatement (FCC 574)..               Pittsburgh, PA 15251-5365.   
4. Shared Use Services:                                                 
  (a) Land Transportation (LT):     3.00  FCC, Land Trans., P.O. Box    
   New, Renewal, Reinstatement             358215, Pittsburgh, PA 15251-
   (FCC 574).                              5215.                        
  (b) Business (Bus.): New,         3.00  FCC, Business, P.O. Box       
   Renewal, Reinstatement (FCC             358220, Pittsburgh, PA, 15251-
   574).                                   5220.                        
  (c) Other Industrial (OI):        3.00  FCC, Other Indus., P.O. Box   
   New, Renewal, Reinstatement             358225, Pittsburgh, PA 15251-
   (FCC 574).                              5225.                        
  (d) General Mobile Radio          3.00  FCC, GMRS, P.O. Box 358230,   
   Service (GMRS): New,                    Pittsburgh, PA, 15251-5230.  
   Renewal, Reinstatement (FCC                                          
   574).                                                                

[[Page 34030]]
                                                                        
  (e) Business, Other               3.00  FCC, Bus., OI, LT, GMRS, P.O. 
   Industrial, Land                        Box 358245, Pittsburgh, PA,  
   Transportation, GMRS:                   15251-5245.                  
   Renewal (FCC 574R, FCC 405A).                                        
  (f) Ground: New, Renewal,         3.00  FCC, Ground, P.O. Box 358260, 
   Reinstatement (FCC 406).                Pittsburgh, PA, 15251-5260.  
  (g) Coast: New, Renewal,          3.00  FCC, Coast, P.O. Box 358265,  
   Reinstatement (FCC 503).                Pittsburgh, PA, 15251-5265.  
  (h) Ground: Renewal (FCC          3.00  FCC, Ground, P.O. Box 358270, 
   452R).                                  Pittsburgh, PA, 15251-5270.  
  (i) Coast: Renewal (FCC 452R)     3.00  FCC, Coast, P.O. Box 358270,  
                                           Pittsburgh, PA, 15251-5270.  
  (j) Ship: New, Renewal,           3.00  FCC, Ship, P.O. Box 358275,   
   Reinstatement (FCC 506).                Pittsburgh, PA, 15251-5275.  
  (k) Aircraft: New, Renewal,       3.00  FCC, Aircraft, P.O. Box       
   Reinstatement (FCC 404).                358280, Pittsburgh, PA 15251-
                                           5280.                        
  (l) Ship: Renewal (FCC 405B).     3.00  FCC, Ship, P.O. Box 358920,   
                                           Pittsburgh, PA, 15251-5290.  
  (m) Aircraft: Renewal (FCC        3.00  FCC, Aircraft, P.O. Box       
   405B).                                  358290, Pittsburgh, PA, 15251-
                                           5290.                        
  (n) Correspondence: Blanket       3.00  FCC, Corres., P.O. Box 358305,
   Renewal (Bus., OI, LT, GMRS)            Pittsburgh, PA, 15251-5305.  
   (Remittance Advice,                                                  
   Correspondence).                                                     
  (o) Correspondence: Blanket       3.00  FCC, Corres., P.O. Box 358305,
   Renewal (Ground) (Remittance            Pittsburgh, PA, 15251-5305.  
   Advice, Correspondence).                                             
  (p) Correspondence: Blanket       3.00  FCC, Corres., P.O. Box 358305,
   Renewal (Coast) (Remittance             Pittsburgh, PA, 15251-5305.  
   Advice, Correspondence).                                             
  (q) Correspondence: Blanket       3.00  FCC, Corres. P.O. Box 35803,  
   Renewal (Aircraft)                      Pittsburgh, PA, 15251-5305.  
   (Remittance Advice,                                                  
   Correspondence).                                                     
  (r) Correspondence: Blanket       3.00  FCC, Corres., P.O. Box 358305,
   Renewal (Ship) (Remittance              Pittsburgh, PA , 15251-5305. 
   Advice, Correspondence).                                             
Amateur Vanity Call Signs......     3.00  FCC, Amateur Vanity, P.O. Box 
                                           358924, Pittsburgh, PA, 15251-
                                           5924.                        
Cellular Radio/Public Mobile         .15  FCC, Cellular, P.O. Box       
 (per unit).                               358835, Pittsburgh, PA, 15251-
                                           5835.                        
Public Mobile One-Way Paging         .02  FCC, Paging, P.O. Box 358835, 
 (per unit).                               Pittsburgh, PA, 15251-5835.  
------------------------------------------------------------------------


    3. 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           
------------------------------------------------------------------------
AM RAdio (47 CFR, Part 73):                                             
    1. Class D Daytime.........     $310  FCC, Am Branch, P.O. Box      
    2. Class A Fulltime........            358835, Pittsburgh, PA 15251-
    3. Class B Fulltime........    1,120   5835.                        
    4. Class C Fulltime........                                         
    5. Construction Permits....      620                                
                                                                        
                                     250                                
                                 .......                                
                                     250                                
FM Radio (47 CFR, Part 73):                                             
    1. Classes C, C1, C2, B....    1,120  FCC, FM Branch, P.O. Box      
    2. Classes A, B1, C3.......            358835, Pittsburgh, PA 15251-
    3. Construction Permits....      745   5835.                        
                                 .......                                
                                     620                                
TV (47 CFR, Part 73) VHF                                                
 Commercial:                                                            
    1. Makets 1 thru 10........   22,420  FCC, TV Branch, P.O. Box      
    2. Markets 11 thru 25......            358835, Pittsburgh, PA 15251-
    3. Markets 26 thru 50......   19,925   5835.                        
    4. Markets 51 thru 100.....  .......                                
    5. Remaining Markets.......   14,950                                
    6. Construction Permits....  .......                                
                                  9, 975                                
                                 .......                                
                                   6,225                                
                                 .......                                
                                   4,975                                
UHF Commercial:                                                         
    1. Markets 1 thru 10.......   17,925  FCC, UHF Commercial, P.O. Box 
    2. Markets 11 thru 25......  .......   348835, Pittsburgh, PA 15251-
    3. Markets 26 thru 50......   15,950   5835.                        
    4. Markets 51 thru 100.....  .......                                
    5. Remaining Markets.......   11,950                                
    6. Construction Permits....  .......                                
                                   7,975                                
                                 .......                                
                                   4,975                                
                                 .......                                
                                   3,975                                
Satellite UHF/VHF Commercial:                                           
    1. All Markets.............      620  FCC Satellite TV, P.O. Box    
    2. Construction Permits....  .......   358835, Pittsburgh, PA 15251-
                                     225   5835.                        
Low Power TV, TV/FM Translator,      170  FCC, Low Power, P.O. Box      
 & TV/FM Booster (47 CFR, Part             358835, Pittsburgh, PA 15251-
 74).                                      5835.                        
Broadcast Auxiliary............       30  FCC, Auxiliary, P.O. Box      
                                           358835, Pittsburgh, PA 15251-
                                           5835.                        
Multipoint Distribution........      140  FCC, Multipoint P.O. Box      
                                           358835, Pittsburgh, PA 15251-
                                           5835.                        
------------------------------------------------------------------------

    4. Section 1.1154 is revised to read as follows:

[[Page 34031]]



Sec. 1.1154  Schedule of annual regulatory charges and filing locations 
for common carrier services.

------------------------------------------------------------------------
                                   Fee                                  
                                  amount              Address           
------------------------------------------------------------------------
Radio Facilities:                                                       
  1. Domestic Public Fixed.....     $140  FCC, Dom. Pub. Fixed, P.O. Box
                                           358835, Pittsburgh, PA, 15251-
                                           5835.                        
Carriers:                                                               
  1. Inter-Exchange Carrier       .00088  FCC, Carriers, P.O. Box       
   (per dollar contributed to              358835, Pittsburgh, PA, 15251-
   TRS Fund).                              5835.                        
  2. Local Exchange Carrier       .00088                                
   (per dollar contributed to                                           
   TRS Fund).                                                           
  3. Competitive Access           .00088                                
   Provider (per dollar                                                 
   contributed to TRS Fund).                                            
  4. Other Interexchange          .00088                                
   Carriers and Service                                                 
   Providers (per dollar                                                
   contributed to TRS Fund).                                            
------------------------------------------------------------------------

    5. 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 Antenna Relay Service.     $290  FCC, Cable, P.O. Box 358835,  
2. Cable TV System (per                    Pittsburgh, PA, 15251-5835.  
 subscriber).                                                           
                                     .49                                
------------------------------------------------------------------------

Secs. 1.1167 and 1.1168  [Removed]


Secs. 1.1156 through 1.1166  [Redesignated as Secs. 1.1157 through 
1.1167]

    6. Sections 1.1167 and 1.1168 are removed, Secs. 1.1156 through 
1.1166 of Subpart G are redesignated as Secs. 1.1157 through 1.1167 
respectively and are revised, and a new Sec. 1.1156 is added 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):            $250  FCC, International, P.O. Box  
   Broadcast.                        200   358835, Pittsburgh, PA, 15251-
  International Public: Fixed..            5835.                        
Space Stations (Geosynchronous    75,000  FCC, Space Stations, P.O. Box 
 Orbit).                                   358835, Pittsburgh, PA, 15251-
                                           5835.                        
Earth Stations:                                                         
  1. VSAT & Equivalent C-Band        330  FCC, Earth Station, P.O. Box  
   antennas, Mobile Satellite              358835, Pittsburgh, PA, 15251-
   Earth Stations, Fixed Earth             5835.                        
   Stations-Transmit/Receive &                                          
   Transmit Only (per                                                   
   authorization or                                                     
   registration).                                                       
Carriers:                                                               
  1. International Circuits         4.00  FCC, International, P.O. Box  
   (per active 64KB circuit or             358835, Pittsburgh, PA, 15251-
   equivalent).                            5835.                        
------------------------------------------------------------------------

Sec. 1.1157  Payment of charges for regulatory fees.

    Payment of a regulatory fee, required under Sec. Sec. 1.1152 
through 1.1156, shall be filed in the following manner:
    (a) Payments of regulatory fees shall be submitted with the filing 
of any application for a new, renewal or reinstatement of a license or 
other authorization in the wireless radio services. (1) Any regulatory 
fee submitted with an application in the wireless radio services shall 
include an advance payment of the total annual regulatory fee payment 
due for the entire term of the license or other authorization. The 
amount of the regulatory fee payment due with any application in the 
wireless radio service 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 with an 
application in the wireless radio service 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 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.
    (c) Standard regulatory fee payments, as well as any installment 
payment, must be filed with a FCC Form 159, FCC Remittance Advice, and 
a FCC Form 159C, Remittance Advice Continuation Sheet, if additional 
space is needed. Failure to submit a copy of FCC Form 159 with a 
standard regulatory fee payment, or an installment payment, will result 
in the return of the submission and a 25 percent penalty if the payment 
is resubmitted after the date the Commission establishes for the 
payment of standard regulatory fees and for any installment payment.
    (1) Any late filed regulatory fee payment will be subject to the 
penalties set forth in section 1.1164.
    (2) If one or more installment payments are untimely submitted or 
not submitted at all, the eligibility of the subject regulatee to 
submit installment payments may be cancelled.


Sec. 1.1158  Form of payment for regulatory.

    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 or Mastercard 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.

[[Page 34032]]

    (a) Upon authorization from the Commission following a written 
request, electronic fund transfer (EFT) payment of a regulatory fee may 
be made as follows:
    (1)(i) The payor may instruct its bank to make payment of the 
regulatory fee directly to the Commission's lockbox bank, or
    (ii) The payor may authorize the Commission to direct its lockbox 
bank to withdraw funds directly from the payor's bank account.
    (2) No EFT payment of a regulatory fee will be accepted unless the 
payor has obtained the written authorization of the Commission to 
submit regulatory fees electronically. Procedures for electronic 
payment of regulatory fees will be announced by Public Notice. It is 
the responsibility of the payor to insure that any electronic payment 
is made in the manner required by the Commission. Failure to comply 
with the Commission's procedures for electronic fee payment will result 
in the return of the fee payment, and a penalty fee of 25 percent if 
the subsequent refiling of the fee payment is late. Failure to comply 
will also subject the payor to the penalties set forth in Sec. 1.1164.
    (b) Multiple payment instruments for a single regulatory fee are 
not permitted, except that the Commission will accept multiple money 
orders in payment of any fee where the fee exceeds the maximum amount 
for a money order established by the issuing entity and the use of 
multiple money orders is the only practicable means available for 
payment.
    (c) Payment of multiple standard regulatory fees (including an 
installment payment) due on the same date, may be made with a single 
payment instrument and cover mass media, common carrier, international, 
and cable service fee payments. Each regulatee is solely responsible 
for accurately accounting for and listing each license or authorization 
and the number of subscribers, access lines, or other relevant units on 
the accompanying FCC Form 159 and, if needed, FCC Form 159C and for 
making full payment for every regulatory fee listed on the accompanying 
form. Any omission or payment deficiency of a regulatory fee will 
result in a 25 percent penalty of the amount due and unpaid.
    (d) Any regulatory fee payment (including a regulatory fee payment 
submitted with an application in the wireless radio service) made by 
credit card or money order must be submitted with a completed FCC Form 
159. Failure to accurately enter the credit card number and date of 
expiration and the payor's signature in the appropriate blocks on FCC 
Form 159 will result in rejection of the credit card payment.
Sec. 1.1159  Filing locations and receipts for regulatory fees.

    (a) Regulatory fee payments must be directed to the location and 
address set forth in Sec. Sec. 1.1152 through 1.1156 for the specific 
category of fee involved. Any regulatory fee required to be submitted 
with an application must be filed as a part of the application package 
accompanying the application. The Commission will not take 
responsibility for matching fees, forms and applications submitted at 
different times or locations.
    (b) Petitions for reconsideration or applications for review of fee 
decisions submitted with a standard regulatory fee payment pursuant to 
Sec. Sec. 1.1152 through 1.1156 of the rules are to be filed with the 
Commission's lockbox bank in the manner set forth in Secs. 1.1152 
through 1.1156 for payment of the fee subject to the petition for 
reconsideration or the application for review. Petitions for 
reconsideration and applications for review that are submitted with no 
accompanying payment should be filed with the Secretary, Federal 
Communications Commission, Attention: Managing Director, Washington, 
D.C. 20554.
    (c) Any request for exemption from a regulatory fee shall be filed 
with the Secretary, Federal Communications Commission, Attention: 
Managing Director, Washington, D.C. 20554, except that requests for 
exemption accompanied by a tentative fee payment shall be filed at the 
lockbox set forth for the appropriate service in Sec. Sec. 1.1152 
through 1.1156.
    (d) The Commission will furnish a receipt for a regulatory fee 
payment only upon request. In order to obtain a receipt for a 
regulatory fee payment, the package must include an extra copy of the 
Form FCC 159 or, if a Form 159 is not required with the payment, a copy 
of the first page of the application or other filing submitted with the 
regulatory fee payment, submitted expressly for the purpose of serving 
as a receipt for the regulatory fee payment and application fee 
payment, if required. The document should be clearly marked ``copy'' 
and should be the top document in the package. The copy will be date 
stamped immediately and provided to the bearer of the submission, if 
hand delivered. For submissions by mail, the receipt copy will be 
provided through return mail if the filer has attached to the receipt 
copy a stamped self-addressed envelope of sufficient size to contain 
the receipt document.


Sec. 1.1160  Refunds of regulatory fees.

    (a) Regulatory fees will be refunded, upon request, only in the 
following instances:
    (1) When no regualtory 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.
    (2) In the case of advance payment of regulatory fees, subject to 
Sec. 1.1152, a refund will be issued based on unexpired full years:
    (i) When the Commission adopts new rules that nullify a license or 
other authorization, or a new law or treaty renders a license or other 
authorization useless;
    (ii) When a licensee in the wireless radio service surrenders the 
license or other authorization subject to a fee payment to the 
Commission; or
    (iii) When the Commission declines to grant an application 
submitted with a regulatory fee payment.
    (3) When a waiver is granted in accordance with Sec. 1.1166.
    (b) No pro-rata refund of an annual fee will be issued.
    (c) No refunds will be issued based on unexpired partial years.
    (d) No refunds will be processed without a written request from the 
applicant, permittee, licensee or agent.


Sec. 1.1161  Conditional license grants and delegated authorizations.

    (a) Grant of any application or an instrument of authorization or 
other filing, for which a regulatory fee is required to accompany the 
application or filing, will be conditioned upon final payment of the 
regulatory fee. Final payment shall mean receipt by the U.S. Treasury 
of funds cleared by the financial institution on which the check, bank 
draft, money order, credit card, wire or electronic payment is drawn.
    (1) If, prior to a grant of an instrument of authorization, the 
Commission is notified that final payment of the regulatory fee has not 
been made, the application or filing:
    (i) Will be dismissed and returned;
    (ii) Shall lose its place in the processing line; and
    (iii) Will not be treated as timely filed if resubmitted after the 
relevant filing deadline.
    (2) If, subsequent to a grant of an instrument of authorization or 
other filing, the Commission is notified that final payment has not 
been made, the Commission will:
    (i) Automatically rescind that instrument of authorization for 
failure to 

[[Page 34033]]
meet the condition imposed by this subsection;
    (ii) Notify the grantee of this action; and
    (iii) Treat as late filed any application resubmitted after the 
original deadline for filing the application.
    (3) Upon receipt of a notification of rescission of the 
authorization, the grantee will immediately cease operations initiated 
pursuant to the authorization.
    (b) In those instances where the Commission has granted a request 
for deferred payment of a regulatory fee, further processing of the 
application or filing or the grant of authority shall be conditioned 
upon final payment of the regulatory fee and any required penalties for 
late payment prescribed by the deferral decision. Failure to comply 
with the terms of the deferral decision shall result in the automatic 
dismissal of the submission or rescission of the Commission 
authorization. Further, the Commission shall:
    (1) Notify the grantee that the authorization has been rescinded. 
Upon such notification, the grantee will immediately cease operations 
initiated pursuant to the authorization; and
    (2) Treat as late filed any application resubmitted after the 
original deadline for filing the application.
    (c) Where the procedures described in paragraphs (a) and (b) of 
this section would not provide a meaningful incentive to pay a 
regulatory fee that is due or would not be a meaningful sanction for 
failure to pay such a fee, the Commission may, in its discretion, 
whether the regulatory fee is required to be paid with an application 
for an instrument of authorization or otherwise, withhold processing 
and/or grant of any application or filing made by a person or 
organization who has failed to make full payment of any regulatory fee 
due.
    (1) Before taking such action, the staff will make a written 
request for the fee, together with any penalties that may be rendered 
under this subpart. Such request shall inform the regulatee that 
failure to pay may result in the Commission withholding action on any 
application or request filed by the applicant. The staff shall also 
inform the regulatee of the procedures for seeking Commission review of 
the staff's fee determination.
    (2) If, after final determination that the fee is due, payment is 
not made in a timely manner, the staff may terminate processing and/or 
withhold any grant or petition requested by the person or organization 
subject to the fee payment requirement, until the matter is resolved.
Sec. 1.1162  General exemptions from regulatory fees.

    No regulatory fee established in Secs. 1.1152 through 1.1156, 
unless otherwise qualified herein, shall be required for: (a) 
Applicants, permittees or licensees in the Amateur Radio Service, 
except that any person requesting a vanity call-sign shall be subject 
to the payment of a regulatory fee, as prescribed in Sec. 1.1152.
    (b) Applicants, permittees, or licensees who qualify as government 
entities. For purposes of this exemption, a government entity is 
defined as any state, possession, city, county, town, village, 
municipal corporation, or similar political organization or subpart 
thereof controlled by publicly elected or duly appointed public 
officials exercising sovereign direction and control over their 
respective communities or programs.
    (c) Applicants, permittees or licensees who qualify as nonprofit 
entities. For purposes of this exemption, a nonprofit entity is defined 
as an organization possessing nonprofit, tax exempt status under 
section 501 of the Internal Revenue Code, 26 U.S.C. 501.
    (d) Applicants, permittees or licensees in the Special Emergency 
Radio and Public Safety Radio services.
    (e) Applicants, permittees or licensees of noncommercial 
educational broadcast stations in the FM or TV services, as well as AM 
applicants, permittees or licensees operating in accordance with 
Sec. 73.503 of this chapter.
    (f) Applicants, permittees, or licensees qualifying under paragraph 
(e) of this section requesting Commission authorization in any other 
mass media radio service (except the international broadcast (HF) 
service), wireless radio service, common carrier radio service, or 
international radio service requiring payment of a regulatory fee, if 
the service is used in conjunction with their noncommercial educational 
broadcast station on a noncommercial educational basis.
    (g) Other applicants, permittees or licensees providing, or 
proposing to provide, a noncommercial educational or instructional 
service, but not qualifying under paragraph (e) of this section, may be 
exempt from regulatory fees, or be entitled to a refund, in the 
following circumstances:
    (1) The applicant, permittee or licensee is an organization that, 
like the Public Broadcasting Service or National Public Radio, receives 
funding directly or indirectly through the Public Broadcasting Fund, 47 
U.S.C. 396(k), distributed by the Corporation for Public Broadcasting, 
where the authorization requested will be used in conjunction with the 
organization on a noncommercial educational basis;
    (2) An applicant, permittee or licensee of a translator or low 
power television station operating or proposing to operate a 
noncommercial educational service who, after grant, provides proof that 
it has received funding for the construction of the station through the 
National Telecommunications and Information Administration (NTIA) or 
other showings as required by the Commission; or
    (3) An applicant, permittee, or licensee provided a fee refund 
under Sec. 1.1160 and operating as a noncommercial education station, 
is exempt from fees for broadcast auxiliary stations (Subparts D, E, 
and F of Part 74 of this chapter) or stations in the wireless radio, 
common carrier, or international services where such authorization is 
to be used in conjunction with the noncommercial educational translator 
or low power station.
    (h) An applicant, permittee or licensee that is the licensee of an 
instructional television fixed station (Sec. 74.901 through 74.996 of 
this chapter) is exempt from regulatory fees where the authorization 
requested will be used by the applicant in conjunction with the 
provision of the instructional service.
    (i) Applications filed in the wireless radio service for the sole 
purpose of modifying an existing authorization (or a pending 
application for authorization). However, if the applicant also requests 
a renewal or reinstatement of its license or other authorization for 
which the submission of a regulatory fee is required, the appropriate 
regulatory fee for such additional request must accompany the 
application.


Sec. 1.1163  Adjustments to regulatory fees.

    (a) For Fiscal Year 1995, the amounts assessed for regulatory fees 
are set forth in Secs. 1.1152 through 1.1156.
    (b) For Fiscal year 1996 and thereafter, the Schedule of Regulatory 
Fees, contained in Secs. 1.1152 through 1.1156, may be adjusted 
annually by the Commission pursuant to section 9 of the Communications 
Act. 47 U.S.C. 159. Adjustments to the fees established for any 
category of regulatory fee payment shall include projected cost 
increases or decreases and an estimate of the volume of licensees or 
units upon which the regulatory fee is calculated.
    (c) The fees assessed shall:
    (1) Be derived by determining the full-time equivalent number of 
employees performing enforcement activities, policy and rulemaking 
activities, user information services, and international 

[[Page 34034]]
activities within the Wireless Telecommunications Bureau, Mass Media 
Bureau, Common Carrier Bureau, Cable Services Bureau, International 
Bureau and other offices of the Commission, adjusted to take into 
account factors that are reasonably related to the benefits provided to 
the payor of the fee by the Commission's activities, including such 
factors as service coverage area, shared use versus exclusive use, and 
other factors that the Commission determines are necessary in the 
public interest;
    (2) Be established at amounts that will result in collection, 
during each fiscal year, of an amount that can reasonably be expected 
to equal the amount appropriated for such fiscal year for the 
performance of the activities described in paragraph (c)(1) of this 
section.
    (d) The Commission shall by rule amend the Schedule of Regulatory 
Fees by proportionate increases or decreases that reflect, in 
accordance with paragraph (c)(2) of this section, changes in the amount 
appropriated for the performance of the activities described in 
paragraph (c)(1) of this section, for such fiscal year. Such 
proportionate increases or decreases shall be adjusted to reflect 
unexpected increases or decreases in the number of licensees or units 
subject to payment of such fees and result in collection of an 
aggregate amount of fees that will approximately equal the amount 
appropriated for the subject regulatory activities.
    (e) The Commission shall, by rule, amend the Schedule of Regulatory 
Fees if the Commission determines that the Schedule requires amendment 
to comply with the requirements of paragraph (c)(1) of this section. In 
making such amendments, the Commission shall add, delete or reclassify 
services in the Schedule to reflect additional deletions or changes in 
the nature of its services as a consequence of Commission rulemaking 
proceedings or changes in law.
    (f) In making adjustments to regulatory fees, the Commission will 
round such fees to the nearest $5.00 in the case of fees under 
$1,000.00, or to the nearest $25.00 in the case of fees of $1,000.00 or 
more.


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

    Any late payment or insufficient payment of a regulatory fee, not 
excused by bank error, shall subject the regulatee to a 25 percent 
penalty of the amount of the fee of installment payment which was not 
paid in a timely manner. A timely fee payment or installment payment is 
one received at the Commission's lockbox bank by the due date specified 
by the Commission or by the Managing Director. A payment will also be 
considered late filed if the payment instrument (check, money order, 
bank draft or credit card) is uncollectible.
    (a) The Commission may, in its discretion, following one or more 
late filed installment payments, require a regulatee to pay the entire 
balance of its regulatory fee by a date certain, in addition to 
assessing a 25 percent penalty.
    (b) In cases were a fee payment fails due to error by the payor's 
bank, as evidenced by an affidavit of an officer of the bank, the date 
of the original submission will be considered the date of filing.
    (c) If a regulatory fee is paid in a timely manner, the regulatee 
will be notified of its deficiency. This notice will automatically 
assess a 25 percent penalty, subject the delinquent payor's pending 
applications to dismissal, and may require a delinquent payor to show 
cause why its existing instruments of authorization should not be 
subject to rescission.
    (d)(1) Where a regulatee's new, renewal or reinstatement 
application is required to be filed with a regulatory fee (as is the 
case with wireless radio services), the application will be dismissed 
if the regulatory fee is not included with the application package. In 
the case of a renewal or reinstatement application, the application may 
not be refiled unless the appropriate regulatory fee plus the 25 
percent penalty charge accompanies the refiled application.
    (2) If the application that must be accompanied by a regulatory fee 
is a mutually exclusive application with a filing deadline, or any 
other application that must be filed by a date certain, the application 
will be dismissed if not accompanied by the proper regulatory fee and 
will be treated as late filed if resubmitted after the original date 
for filing application.
    (e) Any pending or subsequently filed application submitted by a 
party will be dismissed if that party is determined to be delinquent in 
paying a standard regulatory fee or an installment payment. The 
application may be resubmitted only if accompanied by the required 
regulatory fee and by any assessed penalty payment.
    (f) In instances where the Commission may revoke an existing 
instrument of authorization for failure to file a regulatory fee, the 
Commission will provide prior notice to the regulatee of such action 
and shall allow the licensee no less than 60 days to either pay the fee 
or show cause why the payment assessed is inapplicable or should 
otherwise be waived or deferred.
    (1) An adjudicatory hearing will not be designated unless the 
response by the regulatee to the Order to Show Cause presents a 
substantial and material question of fact.
    (2) Disposition of the proceeding shall be based upon written 
evidence only and the burden of proceeding with the introduction of 
evidence and the burden of proof shall be on the respondent regulatee.
    (3) Unless the regulatee substantially prevails in the hearing, the 
Commission may assess costs for the conduct of the proceeding against 
the respondent regulatee. See 47 U.S.C. 402(b)(5).
    (4) Any regulatee failing to submit a regulatory fee, following 
notice to the regulatee of failure to submit the required fee, is 
subject to collection of the fee, including interest thereon, any 
associated penalties, and the full cost of collection to the Federal 
government pursuant to section 3720A of the Internal Revenue Code, 31 
U.S.C. 3717, and to the provisions of the Debt Collection Act, 31 
U.S.C. 3717. See 47 CFR 1.1901 through 1.1952. The debt collection 
processes described above may proceed concurrently with any other 
sanction in this paragraph.


1.1165  Payment by cashier's check for regulatory fees.

    Payment by cashier's check may be required when a person or 
organization makes payment, on one or more occasions, with a payment 
instrument on which the Commission does not receive final payment and 
such error is not excused by bank error.


Sec. 1.1166  Waivers, reductions and deferrals of regulatory fees.

    The fees established by sections 1.1152 through 1.1156 may be 
waived, reduced or deferred in specific instances, on a case-by-case 
basis, where good cause is shown and where waiver, reduction or 
deferral of the fee would promote the public interest. Requests for 
waivers, reductions or deferrals of regulatory fees for entire 
categories of payors will not be considered.
    (a) Requests for waivers, reductions or deferrals will be acted 
upon by the Managing Director with the concurrence of the General 
Counsel. If the request for waiver, reduction or deferral is 
accompanied by a fee payment, the request must be submitted to the 
Commission's lockbox bank at the address for the appropriate service 
set forth in sections 1.1152 through 1.1156 of this subpart. If no fee 
payment is submitted and the matter is within the scope of the fee 
rules, the request 

[[Page 34035]]
should be filed with the Commission's Secretary and clearly marked to 
the attention of the Managing Director.
    (b) Defferals of fees will be granted for a period of six months 
following the date that the fee is initially due.
    (c) Petitions for waiver of a regulatory fee must be accompanied by 
the required fee and FCC Form 159. Submitted fees will be returned if a 
waiver is granted. Waiver requests that do not include the required 
fees or forms will be dismissed unless accompanied by a petition to 
defer payment due to financial hardship, supported by documentation of 
the financial hardship.
    (d) Petitions for reduction of a fee must be accompanied by the 
full fee payment less the amount of the requested reduction and FCC 
Form 159. Petitions for reduction accompanied by a fee payment must be 
addressed to the Federal Communications Commission, Attention: 
Petitions, Post Office Box 358835, Pittsburgh, Pennsylvania, 15251-
5835.


Sec. 1.1167  Error claims related to regulatory fees.

    (a) Challenges to determinations of an insufficient regulatory fee 
payment should be made in writing. challenges submitted with a fee 
payment must be submitted to the same location as the original fee 
payment, marked ``Attention: Fee Supervisor''. Challenges not 
accompanied by a fee payment should be filed with the Commission's 
Secretary and clearly marked to the attention of the Managing Director.
    (b) The filing of a petition for reconsideration or an application 
for review of a fee determination will not relieve licensees from the 
requirement that full and proper payment of the underlying fee payment 
be submitted, as required by the Commission's action, or delegated 
action, on a request for waiver, reduction or deferment. Petitions for 
reconsideration and applications for review submitted with a fee 
payment must be submitted to the same location as the original fee 
payment. Petitions for reconsideration and applications for review not 
accompanied by a fee payment should be filed with the Commission's 
Secretary and clearly marked to the attention of the Managing Director.
    (1) Failure to submit the fee by the date required will result in 
the assessment of a 25 percent penalty.
    (2) If the fee payment should fail while the Commission is 
considering the matter, the petition for reconsideration or application 
for review will be dismissed.

[FR Doc. 95-15827 Filed 6-28-95; 8:45 am]
BILLING CODE 6712-01-M