[Federal Register Volume 61, Number 73 (Monday, April 15, 1996)]
[Proposed Rules]
[Pages 16432-16447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9192]



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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Chapter I

[MD Docket No. 96-84; FCC 96-153]


Assessment and Collection of Regulatory Fees For Fiscal Year 1996

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Commission is proposing to revise its Schedule of 
Regulatory Fees in order to recover the amount of regulatory fees that 
Congress has required it to collect for fiscal year 1996. Section 9 of 
the Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees. For fiscal year 1996 
sections 9(b) (2) and (3) provide for annual ``Mandatory Adjustments'' 
and ``Permitted Amendments'' to the Schedule of Regulatory Fees. The 
proposed revisions will further the National Performance Review goals 
of reinventing Government by requiring beneficiaries of Commission 
services to pay for such services.

DATES: Comments must be filed on or before April 29, 1996 and reply 
comments must be filed on or before May 9, 1996.

ADDRESSES: Federal Communications Commission, 1919 M Street, NW., 
Washington, DC 20554.

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

SUPPLEMENTARY INFORMATION:

Adopted: April 5, 1996.
Released: April 9, 1996.

    By the Commission.

Table of Contents

Topic/Paragraph Numbers

I. Introduction 1-4
II. Background 5-7
III. Discussion 8-60
    A. Overall Methodology and Format--8-10
    B. Adjustment of Payment Units--11
    C. Recalculation of Fees--12
    D. Cost Accounting System--13-17
    E. Other Proposed Changes--18-51
    1. Commercial Mobile Radio Service--19
    2. Commercial AM/FM Radio--20-21
    3. Commercial AM/FM/TV Construction Permits--22-26
    4. Commercial VHF/UHF Television Stations--27
    5. Auxiliary Broadcast Stations--28-33
    6. Interstate Telephone Service Providers--34
    7. Earth Stations--35
    8. Wireless Cable--36-38
    9. Direct Broadcast Satellite (DBS) Service--39-42
    10. Intelsat & Inmarsat Signatory--43-47
    11. Low Earth Orbit (LEO) Satellite Systems--48-49
    12. Minimum Fee Payment Liability--50-51
    F. Procedures for Payment of Regulatory Fees--52-59
    1. Annual Payments of Standard Fees--53
    2. Installment Payments for Large Fees--54-55
    3. Advance Payments of Small Fees--56
    4. Minimum Fee Payment Liability--57
    5. Standard Fee Calculations and Payment Dates--58-59
    G. Schedule of Regulatory Fees--60
IV. Procedural Matters--61-69
    A. Comment Period and Procedures--61
    B. Ex Parte Rules--62
    C. Initial Regulatory Flexibility Analysis--63
    D. Paperwork Reduction Act Compliance--64-67
    E. Authority and Further Information--68-69
Appendix A--Initial Regulatory Flexibility Analysis
Appendix B--Sources of Payment Unit Estimates for FY 1996
Appendix C--Calculation of Pro-Rata Adjustments
Appendix D--FY 1996 Schedule of Regulatory Fees
Appendix E--Comparison Between FY 1995 and FY 1996 Regulatory Fees
Appendix F--FY 1996 Guidelines for Regulatory Fee Categories

I. Introduction

    1. By this Notice of Proposed Rulemaking, the Commission commences 
a proceeding to revise its Schedule of Regulatory Fees in order to 
recover the amount of regulatory fees that Congress, pursuant to 
Section 9(a) of the Communications Act, has required it to collect for 
Fiscal Year (FY) 1996. See 47 U.S.C. Sec. 159 (a).
    2. For FY 1996, Congress has required that we collect $116,400,000 
through regulatory fees in order to recover the costs of our 
enforcement, policy and rulemaking, international and user information 
activities for FY 1996. P.L. 104-99 and 47 U.S.C. Sec. 159(a)(2). This 
is the same amount that Congress designated for recovery through 
regulatory fees for FY 1995. See Assessment and Collection of 
Regulatory Fees for Fiscal Year 1995, FCC 95-227, released June 19, 
1995, 60 FR 34004 (June 29, 1995). The current

[[Page 16433]]

Schedule of Regulatory Fees is set forth in sections 1.1152 through 
1.1156 of the Commission's rules. 47 CFR Secs. 1.1152-1.1156.
    3. Because the amount that Congress requires that we recover for FY 
1996 is the same amount as we were required to recover for FY 1995, we 
are not proposing to revise the Schedule of Fees to collect more or 
less in total fees. However, we are proposing adjustments to the 
Schedule and associated payment procedures to reflect changes in the 
estimated number of payment units associated with services subject to a 
fee and to incorporate certain public interest considerations. See 47 
U.S.C. 159 (b).
    4. Finally, we propose to amend the Schedule in order to assess 
regulatory fees upon licensees and/or regulatees of services not now 
subject to payment of a fee, to simplify and streamline the Schedule 
and to clarify and/or revise certain payment procedures. 47 U.S.C. 
Sec. 159(b)(3).

II. Background

    5. Section 9(a) of the Communications Act of 1934, as amended, 
authorizes the Commission to assess and collect annual regulatory fees 
to recover the costs, as determined annually by Congress, that it 
incurs in carrying out enforcement, policy and rulemaking, 
international, and user information activities. 47 U.S.C. 159(a). In 
our FY 1994 Fee Order, 59 FR 30984 (June 16, 1994), we adopted the 
Schedule of Regulatory Fees that Congress established and we prescribed 
rules to govern payment of the fees, as required by Congress. 47 U.S.C. 
Sec. 159(b), (f)(1). Subsequently, in our FY 1995 Fee Order, we 
modified the Schedule to increase by approximately 93 percent the 
revenue generated by these fees in accordance with the amount Congress 
required us to collect in FY 1995 over FY 1994. 60 FR 34004 (June 29, 
1995). Also, in the FY 1995 Fee Order, we amended certain rules 
governing our regulatory fee program based upon our experience 
administering the program in FY 1994. See 47 CFR Secs. 1.1151 et seq.
    6. As noted above, for FY 1994 we adopted the Schedule of 
Regulatory Fees established in Section 9(g) of the Act. For fiscal 
years after FY 1994, however, Sections 9(b) (2) and (3), respectively, 
provide for ``Mandatory Adjustments'' and ``Permitted Amendments'' to 
the Schedule of Regulatory Fees. 47 U.S.C. Sec. 159(b)(2), (b)(3). 
Section 9(b)(2), entitled ``Mandatory Adjustments'', requires that we 
revise the Schedule of Regulatory Fees whenever Congress changes the 
amount that we are to recover through regulatory fees. 47 U.S.C. 
Sec. 159(b)(2).
    7. Section 9(b)(3), entitled ``Permitted Amendments'', requires 
that we determine annually whether adjustments of the fees are 
warranted based upon criteria established in 47 U.S.C. 159(b)(3). Also, 
pursuant to Section 9(b)(3), we are to adjust the fees to take into 
account factors that are reasonably related to the payor of the fee and 
factors that are in the public interest. In making these amendments, we 
are to ``add, delete, or reclassify services in the Schedule to reflect 
additions, deletions or changes in the nature of its services.'' 47 
U.S.C. Sec. 159(b)(3). Section 9(i) requires that we develop accounting 
systems necessary to making permitted amendments. 47 U.S.C. 
Sec. 159(i). Finally, we are required to notify Congress of any 
permitted amendments 90 days before those amendments go into effect. 47 
U.S.C. Sec. 159(b)(4)(B).

III. Discussion

A. Overall Methodology and Format

    8. As noted above, Congress has required the recovery of 
$116,400,000 for FY 1996 through the collection of regulatory fees, 
representing the costs applicable to our enforcement, policy and 
rulemaking, international, and user information activities. 47 
Sec. U.S.C. 159(a).
    9. Our approach to developing a FY 1996 fee schedule required that 
we first adjust our estimates of payment units so that we could 
determine how much revenue we would collect even if we did not change 
any individual fee amounts. We then compared the total estimated 
revenue that we would collect at the existing fee rates to the $116.4 
million that we are required to collect in FY 1996 and pro-rated the 
difference among all the existing fee categories. We then intended to 
compare these projected revenues with cost data gathered from our new 
cost accounting system and to make whatever adjustments were deemed 
necessary to ensure that costs generally equated to revenues in each 
fee category. As discussed elsewhere in this NPRM, this particular step 
was not performed due to implementation problems associated with our 
new cost accounting system. A substitute mechanism was, however, put in 
place to provide assurances that estimated costs and revenues were 
reasonable.
    10. We next considered various proposals made by Commission Bureaus 
and Offices for additions, deletions or other adjustments to the fees 
and to our collection procedures. The results of these actions were 
factored into our final schedule. That schedule is contained in 
Appendix D. Finally, we incorporated, as Appendix F, proposed Guidance 
which provides detailed descriptions of each fee category, information 
on who is responsible for paying each fee and other critical 
information designed to assist potential fee payers in determining the 
extent of fee liability, if any, in FY 1996, assuming that our proposed 
fees set forth in Appendix D are ultimately adopted.1 The steps 
which we followed in the development of our FY 1996 regulatory fee 
proposals are discussed in more detail in the following paragraphs.
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    \1\ We also will incorporate a similar Appendix in the Report 
and Order concluding this rulemaking. That Appendix will contain 
updated information concerning any changes made to the proposed fees 
adopted by the Report and Order.
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B. Adjustment of Payment Units

    11. In order to calculate individual service fees for FY 1996, we 
first adjusted the estimated payment units for each service because, in 
many services, payment units have changed substantially since last 
year. We obtained our estimates through a variety of means. For 
example, we used Commission licensee data bases, actual prior year 
payment records and industry and trade group projections, when 
available. We tried to verify these estimates from multiple sources to 
ensure that our estimates were reasonable. Appendix B provides a 
summary of how these revised payment units were determined for each fee 
category.

C. Recalculation of Fees

    12. We next multiplied the revised payment units for FY 1996 by the 
FY 1995 fee amounts in each fee category to determine how much revenue 
the Commission would collect in FY 1996 if it made no changes to the 
existing Schedule of Regulatory Fees. Next, we adjusted these revenue 
requirements for each fee category on a proportional basis, consistent 
with Section 9(b)(2) of the Act, to insure that we would collect only 
the $116.4 million prescribed by Congress. Then we recalculated the 
individual fee amounts required to collect the adjusted amount in each 
service and rounded each fee amount as provided by Section 9(b)(2). 
Appendix C provides detailed calculations showing how these revised fee 
amounts were determined.

D. Cost Accounting System

    13. On October 1, 1995, the Commission established a cost 
accounting system which was designed, in part, to assist in the 
development of

[[Page 16434]]

our regulatory fees, specifically to help determine whether and to what 
extent additional revisions to the Schedule of Regulatory Fees might be 
required. See 47 U.S.C. Secs. 159(i). Our objective in establishing the 
cost accounting system was to provide us with data that we could use, 
in combination with other information, to ensure that fees closely 
reflected our actual costs of regulation.
    14. We had intended to compare extrapolated data from the cost 
accounting system with the adjusted revenue requirements described 
above in order to help assure that the adjusted fees we developed for 
each service were reasonably related to the regulatory costs of each 
service. It was our intention to propose further adjustments to the 
fees in instances where the variance between the estimated costs of 
each service and its estimated revenues appeared appropriate.
    15. While there would be inherent deficiencies to any cost 
accounting system relative to meeting the requirements of the Act, we 
nonetheless believed that we would have enough useful information from 
our new cost accounting system to warrant consideration of such data in 
formulating our proposed FY 1996 fees. Unfortunately, several factors 
have prevented us from relying on data derived from the cost accounting 
system for the development of FY 1996 regulatory fees.
    16. First, immediately following implementation of our cost 
accounting system, it was discovered that the system contained a 
significant amount of erroneous data due to technical complications 
encountered during the start-up of the system. Although this data was 
later corrected, the delay in obtaining useful output from the system 
has prevented a thorough analysis of the data. Additionally, the 
lengthy government shutdown and subsequent weather emergency in 
Washington, D.C. prevented the accumulation of critical cost data for 
several weeks. Consequently, we lack the confidence that we originally 
anticipated we would have relative to FY 1996 cost data and, therefore, 
will not utilize such data in the development of our proposed FY 1996 
Regulatory Fee Schedule.
    17. However, because our overall costs incident to the activities 
described in Section 9(a)(1) of the Act remain unchanged from FY 1995, 
we are satisfied that our revenue estimates for FY 1996 generally 
reflect the relative costs applicable to our regulatory activities. As 
a result, many individual fees remain unchanged from last fiscal year.

E. Other Proposed Changes

    18. We examined the results of our calculations made in Paragraph 
12 to determine if further adjustments of the fees and/or changes to 
payment procedures were warranted based upon the public interest and 
other criteria established in 47 U.S.C. 159(b)(3). As a result of this 
review, we have proposed the following:
1. Commercial Mobile Radio Service (CMRS)
    19. The Commercial Mobile Radio Service (CMRS) includes various 
services authorized to provide interconnected mobile radio services for 
profit to the public, or to such classes of eligible users as to be 
effectively available to a substantial portion of the public. CMRS 
includes certain licensees which formerly were licensed as part of the 
Private Radio Services (e.g., Specialized Mobile Radio Services and 
Private Paging), others formerly licensed as part of the Common Carrier 
Radio Services (e.g., Public Mobile Services and Cellular Radio 
Service) and one new service, the Personal Communications Service (PCS) 
2. While specific rules pertaining to each covered service remain 
in separate Parts 22, 80 and 90 of the Commission's rules; general 
rules governing CMRS are contained in Part 20 of the rules. See 47 CFR 
Parts 20, 22, 80 and 90. We are proposing to replace the Public Mobile/
Cellular Radio regulatory fee category with a CMRS Mobile Services 
category and replace the Public Mobile One-Way Paging fee category with 
a CMRS One-Way Paging Services category for regulatory fee collection 
purposes. CMRS Mobile Services will include: qualifying Business Radio 
Services, 220-222 MHz Land Mobile Systems, Specialized Mobile Radio 
Services (Part 90); Public Coast Stations (Part 80); Public Mobile 
Radio, Cellular, 800 MHz Air-Ground Radiotelephone, and Offshore Radio 
Services (Part 22). We propose that licensees in the CMRS Mobile 
Services pay annual regulatory fees on a per mobile or cellular unit 
(mobile or cellular call sign or telephone number), or on a per unit 
(two-way pager) basis. We propose that CMRS One-Way Paging Services 
licensees pay annual regulatory fees on a per unit (pager) basis. See 
Appendix F, Paragraphs 14-16.
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    \2\ Although PCS is a CMRS service, we are not proposing that 
PCS licensees pay a regulatory fee for FY 1996 because the service 
is, at most, in the very early start-up phase with few subscribers 
on the date (December 31, 1995) established for determining 
liability for such a fee and, therefore, it is premature to assess a 
fee.
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2. Commercial AM/FM Radio
    20. In our FY 1995 NPRM, we considered an alternative methodology 
for assessing regulatory fees for Commercial AM and FM radio licensees 
based on market rankings. This methodology, based on markets, was 
ultimately rejected as incomplete and insufficiently accurate for fee 
determination. Other possible alternatives to using the existing class 
designations to differentiate various types of stations and take into 
consideration ability to pay were also eliminated due to a lack of 
vital data necessary for establishing and verifying these fees. We were 
particularly interested in a proposal which would associate population 
density and service area contours with license data. Unfortunately, 
this proposal appears to not be cost effective because it would require 
a significant expenditure of funds to develop the required database and 
additional funds to provide the results to our licensees to use for fee 
payment purposes.
    21. In our FY 1995 Order, we invited commenters to propose viable 
alternatives to using designated class of station as the fee qualifier 
in our FY 1996 NPRM. See FY 1995 Report and Order released June 19, 
1995, Paragraph 54. We reiterate our invitation in this NPRM. In the 
absence of a viable alternative, however, we are proposing to continue 
to base the fees for AM and FM broadcast stations on station class for 
FY 1996. See Appendix F, Paragraph 18.
3. Commercial AM/FM/TV Construction Permits
    22. These categories of fees apply to holders of permits to 
construct new commercial AM, FM, UHF and VHF Television stations 
covered under Part 73 of the Commission's rules. Construction permit 
(CP) fees are based on the type of commercial broadcasting service 
(i.e., AM, FM or TV) for which the station is being constructed.
    23. Because of the small number of construction permits relative to 
overall stations and the modest amount of revenue collected from these 
licensees, we considered elimination of construction permits as a 
separate fee category with the costs attributed to regulation of 
construction permits to be subsumed in the overall costs for regulation 
of broadcast stations. This approach would simplify the fee schedule 
and provide ``one stop'' fee payment by reducing or eliminating the 
need for a broadcaster, in certain instances, to submit multiple 
payments (e.g., when an existing broadcaster is

[[Page 16435]]

also the holder of a construction permit). More generally, it would 
eliminate the fee on stations that are not yet operational and 
producing income.
    24. To recoup revenues lost by the elimination of the construction 
permit fee, we would aggregate the revenue requirements associated with 
construction permits and distribute this revenue requirement on a pro 
rata basis to the primary station fee categories for AM/FM/TV 
commercial broadcast stations. New, slightly higher, primary station 
fees would result from this methodology.
    25. In reviewing this issue, we determined that subsuming the fee 
for construction permits under the primary station fees is inherently 
inequitable since it would result in currently operating broadcast 
stations subsidizing stations under construction, some of which would 
eventually provide direct competition to the existing stations. 
Additionally, the impact on the FM Radio Service is particularly 
apparent. In this service, the impact of a large number of pending 
construction permits combined with the relatively high construction 
permit fee (compared to construction permit fees in the AM and TV 
services) produces a situation where significant costs would have to be 
absorbed by a limited number of operational commercial FM stations, 
resulting in a much greater impact on these broadcasters.
    26. Based on these factors, we propose to retain separate fee 
categories for construction permits for AM/FM/TV commercial broadcast 
stations in FY 1996. We do, however, welcome comments on this issue. 
See Appendix F, Paragraphs 19, 20, 23-25.
4. Commercial VHF/UHF Television Stations
    27. In our FY 1995 Order, we specified that VHF and UHF television 
fees be determined in accordance with the station market rankings 
published by Warren Publishing in the 1994 Edition of the Television 
and Cable Factbook (No. 62). This ranking was based on Areas of 
Dominant Influence (ADIs) as determined by the Arbitron Rating Co. 
(``Arbitron''). Arbitron has now ceased publication of ADI market 
areas. However, the A.C. Nielsen Co. (``Nielsen'') has published 
Designated Market Areas (DMAs) which approximate the same coverage 
areas as the Arbitron ADIs. The Nielsen DMAs also have the advantage of 
including stations in Alaska and Hawaii which Arbitron did not. 
Finally, the 1995 Edition of the Television and Cable Factbook (No. 63) 
has replaced the Arbitron ADI listing with the Nielsen DMA listing. In 
view of the above considerations, we propose for FY 1996 to require 
television licensees to use Nielsen DMA rankings to determine the 
appropriate regulatory fee. See Appendix F, Paragraph 21.
5. Auxiliary Broadcast Stations
    28. This fee category includes licensees of Remote Pickup Stations, 
Aural Broadcast Auxiliary Stations, Television Broadcast Auxiliary 
Stations, and Low Power Auxiliary Stations, authorized under Part 74 of 
the Commission's Rules. These stations are generally associated with a 
particular television or radio broadcast station or cable television 
system.
    29. In an effort to simplify the FY 1996 Fee Schedule, we examined 
the feasibility and equity of combining auxiliary broadcast station 
fees with the primary fees paid by broadcast station licensees and 
cable television operators. Combining these fees appeared to be an 
efficient approach due to the modest auxiliary fee relative to the fees 
assessed on broadcast stations and cable television systems.
    30. Calculating a new fee encompassing both the auxiliary fee and 
station fee is relatively simple. We would add the auxiliary service 
revenue requirement to the AM/FM/TV and cable television revenue 
requirements on a pro-rata basis and then recompute each AM/FM/TV and 
cable television fee. This would result in slightly higher fees for 
each of these entities, but would also reduce the number of individual 
fee payments required from many of these payors.
    31. Although a single consolidated fee has certain advantages, we 
identified some significant problems with using this approach. One 
problem is that the number of auxiliary stations per parent station 
varies greatly, with some broadcast stations or cable systems having 
none of these licenses while others have more than a dozen. Also, it 
appears that no more than ten percent of current regulatees own and 
operate auxiliary facilities. Moreover, since applications for 
auxiliary stations currently do not identify the parent station, nor 
does the Commission maintain records providing this information, it is 
impossible to determine the actual number of auxiliaries by license 
category (AM/FM/TV, cable).
    32. Finally, we determined that this proposal would likely result 
in serious inequities since the larger commercial broadcast stations 
and cable systems in the most profitable markets are most likely to 
utilize multiple auxiliary stations. While a consolidated fee would 
have little impact on them, it would result in smaller, less profitable 
stations subsidizing part of the larger stations' operating costs.
    33. For these reasons, we propose to retain Auxiliary Broadcast 
Station fees as a separate category in FY 1996. We would, however, 
welcome any suggestions on alternative methods for assessing these 
fees. See Appendix F, Paragraph 27.
6. Interstate Telephone Service Providers
    34. For FY 1995, all interstate telephone service providers were 
assessed regulatory fees based on a percentage of their adjusted gross 
revenue as computed from revenue data reported to the 
Telecommunications Relay Service (TRS) Fund. Our FY 1995 Schedule of 
Regulatory Fees listed each type of interstate telephone service 
provider separately (e.g., Inter-exchange Carriers, Local Exchange 
Carriers, Competitive Access Providers, Operator Services Providers) 
causing some inadvertent confusion for payees. Because we are proposing 
once again that all interstate telephone service providers compute 
their fee based on the same adjusted gross revenue method, we are 
proposing to consolidate Inter-Exchange Carriers, Local Exchange 
Carriers, Competitive Access Providers, Operator Service Providers/Pay 
Telephone Operators, Resellers, and Other Interstate Providers into a 
single fee category labeled ``Interstate Telephone Service Providers.'' 
Details concerning who must pay interstate telephone service provider 
fees can be found in Appendix F, Paragraph 32.
7. Earth Stations
    35. For FY 1995, all earth stations were assessed the same fee 
based on the number of authorizations or registrations. Our FY 1995 
Schedule of Fees listed each type of earth station separately, causing 
some inadvertent confusion for payees. Because we are proposing that 
all earth stations (except receive only earth stations for which we 
propose to not assess a regulatory fee) continue to pay the same fee 
based on the number of authorizations or registrations, we are 
proposing to simplify the structure of the Schedule by combining VSATs/
Equivalent C-Band/Mobile, Transmit/Receive, and Transmit Only Earth 
Stations into a single fee category labeled ``Earth Stations.'' Further 
details concerning earth station fees may be found in Appendix F, 
Paragraphs 33-34.

[[Page 16436]]

8. Wireless Cable
    36. Multi-Channel Multipoint Distribution Service Stations (MMDS; 
a.k.a. ``Wireless Cable.''), along with Multipoint Distribution Service 
Stations (MDS), are authorized under Part 21 of the Commission's Rules 
to use microwave frequencies for video and data distribution. These 
services were included in the Domestic Public Fixed Radio Service 
category in the FY 1995 Regulatory Fee Schedule.
    37. When operated as a Multichannel Video Programming Distribution 
service (MVPD), MMDS licensees compete directly with cable television 
and with other MVPDs. Current industry estimates indicate that Wireless 
Cable has 800,000 subscribers or 1.19% of the MVPD market.
    38. We propose to assess regulatory fees on MMDS licensees based on 
an individual call sign. We seek comment on this proposal. See Appendix 
F, Paragraph 28.
9. Direct Broadcast Satellite (DBS) Service
    39. The Direct Broadcast Satellite (DBS) Service offers a wide 
range of programming options to its subscribers distributed via 
geosynchronous satellite. DBS service is expanding rapidly with total 
viewership currently estimated at 1,500,000 subscribers.
    40. For FY 1995, we decided not to assess a fee for the DBS service 
because our resources devoted to regulation of DBS, other than those 
involving application processing, were negligible and because DBS 
operators then served few subscribers. See FY 1995 Report and Order, 
Paragraph 15. For FY 1996, however, we are proposing to assess a fee 
upon licensees in the DBS service since the service is operational, 
serving numerous subscribers and, therefore, subject to the regulatory 
activities (additional resources devoted to policy and rulemaking, 
enforcement and public information) whose costs are recovered by 
assessment of a regulatory fee.
    41. We propose to assess DBS licensees the fee applicable to all 
geosynchronous satellite licensees and, therefore, to include DBS for 
regulatory fee purposes in the Space Station fee category. In 
developing our proposed DBS fee, we considered assessing DBS licensees 
a per subscriber fee rather than including them within the 
geosynchronous satellite fee category. We currently assess per 
subscriber fees in several fee categories, including a per subscriber 
fee for cable television systems. However, we propose that DBS 
satellites be included in the geosynchronous satellite category. 
Despite the fact that DBS is a subscriber-based service, costs 
attributable to regulating DBS operators are more similar to those 
attributable to regulation of other geosynchronous space stations. 
Regulatory responsibilities related to space stations focus on policy 
and rulemaking activities, and are unrelated to the number of end users 
of satellite services. Moreover, DBS rules do not impose additional 
regulatory requirements on video service providers that are 
specifically related to the individual subscriber. Thus, the number of 
subscribers to a DBS service does not significantly affect the 
regulatory costs arising from DBS services. By contrast, cable service 
providers are subject to rate regulation, customer service standards, 
and certain programming obligations. In addition, a subscriber-based 
formula would penalize DBS licensees who win more subscribers with less 
space station capacity (and hence lower regulatory costs). Moreover, 
because DBS licensees are not restricted to the provision of video 
programming, but rather may provide various non-video services, we 
concluded that a facility-based fee would ensure that each DBS licensee 
contributed equitably to the cost of DBS regulation without the need to 
impose possibly burdensome and overly intrusive reporting requirements 
necessary to gather information identifying the services offered by 
individual DBS operators.
    42. In light of the factors discussed above, we propose to assess 
fees on these licensees on a per station basis. See Appendix F, 
Paragraph 35.
10. Intelsat & Inmarsat Signatory
    43. For FY 1995, we determined that Comsat was not subject to 
payment of a geosynchronous satellite regulatory fee for its Intelsat 
and Inmarsat satellites because the legislative history of Section 9 
states that regulatory fees should not be assessed upon space stations 
operated by international bodies. See FY 1995 Report and Order, 
Paragraph 110. Instead, we propose to explore other ways to recover our 
regulatory costs incurred due to Comsat's participation in the Intelsat 
and Inmarsat programs. Thus, we are proposing to assess a new fee to 
recover our costs of regulation of the U.S. Signatory to Intelsat and 
Inmarsat. We believe that the fee is appropriate in view of the unique 
role of the U.S. Signatory in Intelsat's and Inmarsat's structure and 
our unique regulatory role with respect to these entities.
    44. We propose to establish the separate Signatory fee because our 
geosynchronous space station fee now recovers a significant amount of 
costs directly attributable to our resource burden related to 
conducting our oversight of the U.S. Signatory to these international 
operations.3 Currently, we are conducting several proceedings 
regarding the U.S. Signatories' authority to provide services via 
Intelsat and Inmarsat, the U.S. Signatories' authority to participate 
in the procurement or leasing of various Intelsat and Inmarsat space 
stations, and their authority to participate in certain Intelsat and 
Inmarsat-associated businesses. There also are proceedings pending 
before us related to whether the U.S. Signatory has conformed to 
applicable structural and financial separation rules. In addition, we 
actively participate on an ongoing basis with the Executive Branch in 
the oversight of the U.S. Signatories' representations of U.S. policy 
at the Intelsat and Inmarsat governing boards through the U.S. 
Government instructional process and participate directly in the 
Assembly of Parties meetings of the two intergovernmental 
organizations. Finally, we maintain public files of Intelsat and 
Inmarsat governing board and other organizational documents.
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    \3\ The U.S. Signatory to Intelsat is the Communications 
Satellite Corporation (COMSAT), the entity designated, pursuant to 
the Communications Satellite Act, as the sole operating entity to 
participate in the International Telecommunications Satellite 
Organization (Intelsat) in order to construct and operate the space 
segment of the global commercial telecommunications satellite system 
established under the Interim Agreement and Special Agreement signed 
by Governments on August 20, 1964. See 47 U.S.C. Sec. 301. Also, the 
U.S. Signatory to Inmarsat is Comsat, solely designated, pursuant to 
the Communications Satellite Act, to participate in the 
International Mobile Satellite Organization (Inmarsat).
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    45. Because our regulation of the U.S. Signatories is substantially 
different from our regulatory activities related to satellite systems 
licensed by us, we are persuaded that the costs of our activities 
related to the signatories should be recovered directly from the U.S. 
Signatories rather than from space station licensees generally. 
Moreover, we do not believe that it is necessary or appropriate to base 
the Signatory fee on the number of space stations owned by the two 
intergovernmental satellite systems. Rather, we will formulate the 
Signatory fee pursuant to our cost of oversight of the Signatory's 
activities.
    46. Our review of our signatory activities discloses that 
approximately 14.7% of the costs attributable to space station 
regulatory oversight ($2,960,100), as determined in

[[Page 16437]]

Appendix C, is directly related to Intelsat and Inmarsat Signatory 
activities (5.25 FTEs 4 out of a total of 35.7 direct FTEs). This 
means that approximately $435,135 must be collected from the 
signatories to offset the regulatory costs attributed to them 
($2,960,100  x  14.7%). Dividing this revenue requirement by two (there 
are signatories to two separate organizations), yields a signatory fee 
of $217,575 (rounded). Therefore, we are proposing to add a new 
regulatory fee of $217,575 for each designation as a signatory. See 
Appendix F, Paragraph 37. Comment is requested on our proposal to 
charge a signatory fee and on the methodology for calculating such a 
fee.
---------------------------------------------------------------------------

    \4\ Full Time Equivalent (FTE) employment is the total number of 
regular straight-time hours (i.e., not including overtime or holiday 
hours) worked or to be worked by current and future employees 
divided by the number of compensable hours applicable to each fiscal 
year.
---------------------------------------------------------------------------

    47. Since the proposed Signatory fee will recover our costs 
attributable to our signatory oversight, we are also proposing, in 
conjunction with that proposal, to reduce the corresponding space 
station fee. The new space station fee is computed by reducing the 
revenue requirement for space stations calculated in Appendix C 
($2,960,100) by the $435,150 to be collected from signatories and 
dividing the reduced space station revenue requirement ($2,524,950) by 
the number of payment units (39 operational space stations). The result 
of these calculations is a new fee of $64,750 (rounded) for each 
operational space station.5
---------------------------------------------------------------------------

    \5\ This fee is further adjusted in Paragraph 51.
---------------------------------------------------------------------------

11. Low Earth Orbit (LEO) Satellite Systems
    48. The FY 1994 statutory regulatory fee schedule (see 47 U.S.C. 
159(g)) proposed a $90,000 regulatory fee for licensees in the Low 
Earth Orbit (LEO) Satellite service. However, the Commission found that 
there were no operational LEO systems on the effective date of the FY 
1994 Schedule and suspended the fee for that year and again for FY 
1995. See FY 1995 Report and Order, Paragraph 15. For FY 1996, however, 
there are licensed and operational LEO systems. Therefore, we propose 
to include a Low Earth Orbit Satellite System fee in the Schedule of 
Regulatory Fees.
    49. In developing a LEO System regulatory fee for FY 1996, we 
propose to apportion the total revenue requirement for all space 
stations between LEO systems and geosynchronous space station 
licensees. In so doing, we also propose to preserve the same relative 
relationship between the fees established by the Congress in Section 
9(g) of the Act for geosynchronous space stations and LEO systems; 
i.e., an approximate 38.5% differential between the fee for LEO systems 
and the fee for geosynchronous space stations. 47 U.S.C. Sec. 159(g). 
Reliance on this methodology will reduce the revenue which must be 
collected from space stations other than LEOs and the corresponding 
fees for space stations which had been calculated in Appendix C and 
subsequently adjusted in Paragraph 49. As a result of our calculations, 
we are proposing a new LEO system regulatory fee of $87,725 and a new 
geosynchronous space station fee of $63,500 for FY 1996.6 See 
Appendix F, Paragraphs 35-36.
---------------------------------------------------------------------------

    \6\ The FY 1996 adjusted revenue requirement for all space 
stations has been determined to be $2,524,950. See Paragraph 49. For 
FY 1996, there are two LEO systems and 37 geosynchronous space 
stations subject to fee payment. The formula for computing the new 
LEO and geosynchronous space station fees is as follows:
    (a) We have assigned ``L'' to represent the proposed LEO system 
fee and ``G'' to represent the proposed geosynchronous space station 
fee. I.e.,
    L = LEO System Fee
    G = Geosynchronous Space Station Fee
    (b) The relationship between the LEO fee and the geosynchronous 
fee may be expressed as:
    L = 1.385G (i.e., the LEO fee needs to be 38.5% higher than the 
corresponding geosynchronous space station fee).
    (c) The total revenue to be collected from LEOs and 
geosynchronous space stations may be expressed as:
    2L + 37G = $2,524,950 (i.e., the two existing LEO systems and 37 
geosynchronous stations together must account for $2,524,950 in 
revenues).
    (d) Substituting the value of ``L'' in (b) above into the 
formula in (c) above yields the following:
    2(1.385G) + 37G = $2,524,950
    2.77G + 37G = $2,524,950
    39.77G = $2,524,950
    G = $63,489
    (e) Therefore, ``G'' (Geosynchronous space station fee) is 
$63,500 (after rounding).
    (f) Substituting the computed value of ``G'' in (d) above into 
the formula in (c) above yields the following:
    2L + 37(63,500) = 2,524,950
    2L + 2,349,500 = 2,524,950
    2L = 175,450
    L = 87,725
    (g) Therefore, ``L'' (LEO fee) is $87,725.
---------------------------------------------------------------------------

12. Minimum Fee Payment Liability
    50. In FY 1995 the Commission received several small fee payments 
that cost more to deposit and process than the actual amount collected. 
Such payments occur in fee categories where there is a per unit or per 
subscriber charge, such as the fee for cable television (per 
subscriber) or CMRS one-way paging (per unit).
    51. Our collection and verification costs for small payments is 
considerably more than any revenue generated from these collections. 
Thus, we are proposing for FY 1996 a minimum fee liability for payees 
of Commission regulatory fees. Our minimum fee liability policy would 
exempt fee payment for any licensee whose total fee liability was less 
than $10. This exemption would apply only when the total fee due from 
an entity, including all categories of fees for which a payment is due 
by an entity, is less than $10. To ensure that this exemption is 
utilized as envisioned, we are also proposing to continue to require 
that licensees complete and submit FCC Form 159, ``FCC Remittance 
Advice'' so that we may verify that a fee payment is not required of 
these entities.

F. Procedures for Payment of Regulatory Fees

    52. Generally, we propose to retain the procedures that we have 
established for the payment of regulatory fees. Section 9(f) requires 
that we permit ``payment by installments in the case of fees in large 
amounts, and in the case of small amounts, shall require the payment of 
the fee in advance for a number of years not to exceed the term of the 
license held by the payor.'' See 47 U.S.C. Sec. 159(f)(1). Consistent 
with the section, we are again establishing three categories of fee 
payments, based upon the category of service for which the fee payment 
is due and the amount of the fee to be paid. The fee categories are (1) 
``Standard'' fees, (2) ``large'' fees, and (3) ``small'' fees.
1. Annual Payments of Standard Fees
    53. Standard fees are those regulatory fees that are payable in 
full on an annual basis. Payers of standard fees are not required to 
make advance payments for their full license term and are not eligible 
for installment payments. All standard fees are payable in full on the 
date we establish for payment of fees in their regulatory fee category. 
The payment dates for each regulatory fee category will be announced 
either in the Report and Order in this proceeding or by public notice 
in the Federal Register following the termination of the proceeding.
2. Installment Payments for Large Fees
    54. In our FY 1995 NPRM, we proposed that regulatees in any 
category of service with a payment liability of $12,000 or more would 
be eligible to make installment payments. Further, we proposed that 
eligibility for payment by installment would be based upon the amount 
of either a single regulatory fee payment or combination of fee 
payments by the same licensee or regulatee. However, in our FY 1995

[[Page 16438]]

Order, we declined to adopt our installment payment proposals because, 
as a practical matter, there would be insufficient time following the 
effective date of our FY 1995 Schedule of Fees to permit a meaningful 
implementation of an installment payment program.
    55. For FY 1996, while we are mindful that time constraints may 
preclude an opportunity for installment payments, we will once more 
propose that regulatees in any category of service with a payment 
liability of $12,000 or more be eligible to make installment payments 
and that eligibility for payment by installment be based upon the 
amount of either a single regulatory fee payment or combination of fee 
payments by the same licensee or regulatee. Therefore, we propose that 
regulatees eligible to pay by installment payments may submit their 
required fee in two equal payments (on dates to be announced in the 
Report and Order terminating this proceeding or in the Federal Register 
following the proceeding's termination), or, in the alternative, may 
submit a single full payment on the date that their final installment 
payment is due.
3. Advance Payments of Small Fees
    56. As we have in the past, we are proposing to treat regulatory 
fee payments by certain licensees as small fees subject to advance 
payments. Advance payments will be required from licensees of those 
services that we decided would be subject to advance payments in our FY 
1994 Order.7 Payers of advance fees will submit the entire fee due 
for the full term of their licenses when filing their initial, renewal 
or reinstatement application. Regulatees subject to a payment of small 
fees shall pay the amount due for the current fiscal year multiplied by 
the number of years in the term of their requested license. In the 
event that the required fee is adjusted following their payment of the 
fee, the payor would not be subject to the payment of a new fee until 
filing an application for renewal or reinstatement of the license. 
Thus, payment for the full license term would be made based upon the 
regulatory fee applicable at the time the application is filed. The 
Commission will announce by public notice in the Federal Register the 
effective date for the payment of small fees pursuant to the FY 1996 
fee schedule.
---------------------------------------------------------------------------

    \7\ Applicants for new, renewal and reinstatement licenses in 
the following services will be required to pay their regulatory fees 
in advance: Land Mobile Services, Microwave services, Interactive 
Video Data Services (IVDS), Marine (Ship) Service, Marine (Coast) 
Service, Private Land Mobile (Other) Services, Aviation (Aircraft) 
Service, Aviation (Ground) Service, General Mobile Radio Service 
(GMRS). In addition, applicants for Amateur Radio vanity call signs 
will be required to submit an advance payment.
---------------------------------------------------------------------------

4. Minimum Fee Payment Liability
    57. As discussed above, regulatees whose total fee liability is 
less than ten dollars are exempted from fee payment in 1996. See 
Paragraphs 54-55. However, such regulatees must complete and submit FCC 
Form 159, ``FCC Remittance Advice'' so that we may verify that a fee 
payment is not due. The Commission will announce by public notice in 
the Federal Register the effective date for the submission of this fee 
form.
5. Standard Fee Calculations and Payment Dates
    58. As noted, the time for payment of standard fees and any 
installment payments will be published in the Federal Register. For 
licensees, permittees and holders of other authorizations in the Common 
Carrier, Mass Media, and Cable Services, whose fees are not based on a 
subscriber, line or circuit count, fees should be submitted for any 
authorization held as of October 1, 1995. October 1 is the date to be 
used for establishing liability for payment of standard fees since it 
is the first day of the federal government's fiscal year.
    59. In the case of regulatees whose fees are based upon a 
subscriber, line or circuit count, the number of a regulatees' 
subscribers, licenses or circuits on December 31, 1995, will be used to 
calculate the fee payment.8 We have selected the last date of the 
calendar year because many of these entities file reports with us as of 
that date. Others calculate their subscriber numbers as of that date 
for internal purposes. Therefore, calculation of the regulatory fee as 
of that date will facilitate both an entity's computation of its fee 
payment and our verification that the correct fee payment has been 
submitted.
---------------------------------------------------------------------------

    \8\ Cable systems calculate their regulatory fees using 
subscriber data submitted to the Commission in their Annual Report 
of Cable Television Systems (FCC Form 325). Accordingly, the number 
of cable subscribers will not neccessarily be based on account as of 
December 31, 1995, but rather on ``a typical day in the last full 
week'' of December 1995.
---------------------------------------------------------------------------

G. Schedule of Regulatory Fees

    60. The Commission's proposed Schedule of Regulatory Fees for FY 
1996 is contained in Appendix D of this NPRM.

IV. Procedural Matters

A. Comment Period and Procedures

    61. Pursuant to the procedures set forth in sections 1.415 and 
1.419 of the Commission's rules, interested parties may file comments 
on or before April 29, 1996, and reply comments on or before May 9, 
1996. All relevant comments will be considered by the Commission before 
final action is taken in this proceeding. To file formally in this 
proceeding, participants must file an original and four copies of all 
comments, reply comments and supporting materials. If participants want 
each Commissioner to receive a personal copy of their comments, an 
original and nine copies must be filed. Comments and reply comments 
should be sent to the Office of the Secretary, Federal Communications 
Commission, Washington, D.C. 20554. Interested parties, who do not wish 
to formally participate in this proceeding, may file informal comments 
to the same address. Comments and reply comments will be available for 
public inspection during regular business hours in the FCC Reference 
Center (Room 239) of the Federal Communications Commission, 1919 M 
Street, N.W., Washington, D.C. 20554.

[[Page 16439]]

B. Ex Parte Rules

    62. This is a non-restricted notice and comment rulemaking 
proceeding. Ex parte presentations are permitted, except during the 
Sunshine Agenda period, provided they are disclosed pursuant to the 
Commission's rules. See 47 CFR Secs. 1.1202, 1.1203 and 1026(a).

C. Initial Regulatory Flexibility Analysis

    63. As required by section 603 of the Regulatory Flexibility Act 
(Pub. L. No. 96-354, 94 Stat. 1165, 5 U.S.C. Sec. 601 et seq. (1981), 
the Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the expected impact on small entities of the proposals 
suggested in this document. The IRFA is set forth in Appendix A. 
Written public comments are requested with respect to the IRFA. These 
comments must be filed in accordance with the same filing deadlines for 
comments on the rest of the NPRM, but they must have a separate and 
distinct heading, designating the comments as responses to the IRFA. 
The Secretary shall send a copy of this NPRM, including the IRFA, to 
the Chief Counsel for Advocacy of the Small Business Administration in 
accordance with section 603(a) of the Regulatory Flexibility Act.

D. Authority and Further Information

    64. Authority for this proceeding is contained in sections 4 (i) 
and (j), 9, and 303(r) of the Communications Act of 1934 as amended, 47 
U.S.C. Secs. 154 (i) and (j) and 159 and 303(r).
    65. Further information about this proceeding may be obtained by 
contacting the Fees Hotline at (202) 418-0192.

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

Appendix A--Initial Regulatory Flexibility Analysis

Reason for Action

    This rulemaking proceeding is initiated to obtain comment 
regarding the Commission's proposed amendment of its Schedule of 
Regulatory Fees in order to collect regulatory fees in the amount of 
$116,400,000, the amount that Congress has required the Commission 
to recover through regulatory fees in Fiscal Year 1996.

Objectives

    The Commission seeks to collect the necessary amount through its 
proposed revised regulatory fees, as contained in the attached 
Schedule of Regulatory Fees, in the most efficient manner possible 
and without undue burden to the public.

Legal Basis

    The proposed action is authorized under sections (4) (i) and 
(j), 9 and 303(r) of the Communications Act of 1934, as amended, 47 
U.S.C. Secs. 154 (i) and (j), 159, and 303(r).

Reporting, Recordkeeping and other Compliance Requirements

    The Commission has developed FCC Form 159 and FCC Form 159C for 
submission with regulatory fee payments. Also, the Commission has 
adopted implementation rules governing the payment of regulatory 
fees. See 47 CFR Sec. 1.1151 et seq.

Federal Rules that Overlap, Duplicate or Conflict with Proposed Rule

    None.

Description, Potential Impact, and Number of Small Entities Involved

    The proposed amendment of the Schedule of Regulatory Fees will 
affect permittees, licensees and other regulatees in the cable, 
common carrier, mass media, private radio and international 
services. After evaluating the comments in this proceeding, the 
Commission will further examine the impact of any fee revisions or 
additions or rule changes on small entities and set forth our 
findings in the Final Regulatory Flexibility Analysis.

Any Significant Alternatives Minimizing the Impact on Small Entities 
Consistent With the Stated Objectives

    The Notice solicits comments on alternative methods of assessing 
the regulatory fees necessary to recover the $116,400,000 in costs 
that Congress has required us to recover through regulatory fees in 
FY 1996.

Appendix B--Sources of Payment Unit Estimates for FY 1996

    In order to calculate individual service fees for FY 1996, we 
adjusted FY 1995 payment units for each service to more accurately 
reflect expected FY 1996 payment liabilities. We obtained our 
updated estimates through a variety of means. For example, we used 
Commission licensee data bases, actual prior year payment records 
and industry and trade association projections when available. We 
tried to obtain verification for these estimates from multiple 
sources and, in all cases, we compared FY 1996 estimates with actual 
FY 1995 payment units to ensure that our revised estimates were 
reasonable. Where it made sense, we adjusted and/or rounded our 
final estimates to take into consideration the fact that certain 
variables that impact on the number of payment units yet cannot be 
estimated exactly. These include an unknown number of waivers and/or 
exemptions that may occur in FY 1996 and the fact that, in many 
services, the number of actual licensees or station operators 
fluctuates from time to time due to economic, technical or other 
reasons. Therefore, when we note, for example, that our estimated FY 
1996 payment units are based on FY 1995 actual payment units, it 
does not necessarily mean that our FY 1996 projection is exactly the 
same number as FY 1995. It means that we have either rounded the FY 
1995 number or adjusted it slightly to account for these variables.

------------------------------------------------------------------------
         Fee catgory               Sources of payment unit estimates    
------------------------------------------------------------------------
Land Mobile (All), Microwave,  Based on Wireless Telecommunications     
 IVDS, Marine (Ship & Coast),   Bureau (WTB) projections of new         
 Aviation (Aircraft &           applications and renewals taking into   
 Ground), GMRS, Amateur         consideration existing Commission       
 Vanity Call Signs, Domestic    licensee data bases. Aviation (Aircraft)
 Public Fixed.                  and Marine (Ship) estimates have been   
                                adjusted to take into consideration     
                                proposals to license portions of these  
                                services on a voluntary basis.          
CMRS Mobile Services (incl.    Based on actual FY 1995 payment units    
 Cellular/Public Mobile Radio   adjusted to take into consideration     
 Services and Two Way Paging    industry estimates of growth between FY 
 Services).                     1995 and FY 1996 and Wireless           
                                Telecommunications Bureau projections of
                                new applications and average number of  
                                mobile units associated with each       
                                application.                            
CMRS One Way Paging Services.  Based on industry estimates of the number
                                of pager units in operation.            
AM/FM Radio Stations.........  Based on actual FY 1995 payment units.   
UHF/VHF Television Stations..  Based on actual FY 1995 payment units.   
AM/FM/TV Construction Permits  Based on actual FY 1995 payment units.   
                                                                        

[[Page 16440]]

                                                                        
LPTV, Translators and          Based on actual FY 1995 payment units.   
 Boosters.                                                              
Auxiliaries..................  Based on actual FY 1995 payment units.   
MDS/MMDS.....................  Based on actual FY 1995 payment units.   
Cable Antenna Relay System     Based on actual FY 1995 payment units.   
 (CARS).                                                                
Cable Television System        Based on Cable Services Bureau and       
 Subscribers.                   industry estimates of subscribership.   
IXCs/LECs, CAPs, Other         Based on actual FY 1995 interstate       
 Service Providers.             revenues associated with contributions  
                                to the Telecommunications Relay System  
                                (TRS) Fund adjusted to take into        
                                consideration FY 1996 revenue growth in 
                                this industry as estimated by the Common
                                Carrier Bureau.                         
Earth Stations...............  Based on actual FY 1995 payment units.   
Space Stations & LEOs........  Based on International Bureau licensee   
                                data bases.                             
International Bearer Circuits  Based on actual FY 1995 payment units.   
International HF Broadcast     Based on actual FY 1995 payment units.   
 Stations, International                                                
 Public Fixed Radio Service.                                            
------------------------------------------------------------------------



BILLING CODE 6712-01-P

[[Page 16441]]

[GRAPHIC] [TIFF OMITTED] TP15AP96.011



BILLING CODE 6712-01-C

[[Page 16442]]



             Appendix D--FY 1996 Schedule of Regulatory Fees            
------------------------------------------------------------------------
                                                              Annual    
                      Fee category                        regulatory fee
------------------------------------------------------------------------
Land Mobile (per license) (220-222 Mhz, above 470 Mhz,                  
 Base Station and SMRS) (47 CFR Part 90)................         6      
Microwave (per license) (47 CFR Part 101)...............         6      
Interactive Video Data Service (per license) (47 CFR                    
 Part 95)...............................................         6      
Marine (Ship) (per station) (47 CFR Part 80)............         3      
Marine (Coast) (per license) (47 CFR Part 80)...........         3      
General Mobile Radio Service (per license) (47 CFR Part                 
 95)....................................................         3      
Land Mobile (per license) (all stations not covered                     
 above).................................................         3      
Aviation (Aircraft) (per station) (47 CFR Part 87)......         3      
Aviation (Ground) (per license) (47 CFR Part 87)........         3      
Amateur Vanity Call Signs (per call sign) (47 CFR Part                  
 97)....................................................         3      
CMRS Mobile Services (per unit) (47 CFR Parts 20, 22, 80                
 and 90)................................................          .15   
CMRS One-Way Paging (per unit) (47 CFR Parts 20, 22 and                 
 90)....................................................          .02   
Domestic Public Fixed Radio (per call sign) (47 CFR Part                
 21)....................................................       140      
AM Radio (47 CFR Part 73):                                              
    Class A.............................................     1,125      
    Class B.............................................       630      
    Class C.............................................       255      
    Class D.............................................       315      
    Construction Permits................................       125      
FM Radio (47 CFR Part 73):                                              
    Classes C, C1, C2, B................................     1,125      
    Classes A, B1, C3...................................       755      
    Construction Permits................................       625      
TV (47 CFR Part 73) VHF Commercial:                                     
    Markets 1-10........................................    22,700      
    Markets 11-25.......................................    20,175      
    Markets 26-50.......................................    15,125      
    Markets 51-100......................................    10,100      
    Remaining Markets...................................     6,300      
    Construction Permits................................     5,025      
TV (47 CFR Part 73) UHF Commercial:                                     
    Markets 1-10........................................    18,150      
    Markets 11-25.......................................    16,150      
    Markets 26-50.......................................    12,100      
    Markets 51-100......................................     8,075      
    Remaining Markets...................................     5,025      
    Construction Permits................................     4,025      
Satellite Television Stations (All Markets).............       625      
Construction Permits--Satellite Television Stations.....       230      
Low Power TV, TV/FM Translators & Boosters (47 CFR Part                 
 74)....................................................       170      
Broadcast Auxiliary (47 CFR Part 74)....................        30      
Multipoint Distribution Service (per call sign) (47 CFR                 
 Part 21)...............................................       140      
Cable Antenna Relay Service (47 CFR Part 78)............       295      
Cable Television Systems (per subscriber) (47 CFR Part                  
 76)....................................................          .50   
Interstate Telephone Service Providers (per revenue                     
 dollar)................................................          .00089
Earth Stations (47 CFR Part 25).........................       335      
Space Stations (per operational station in                              
 geosynchronous orbit) (47 CFR Part 25) also includes                   
 Direct Broadcast Satellite Service (per operational                    
 station) (47 CFR Part 100).............................    63,500      
Low Earth Orbit Satellite (per operational system) (47                  
 CFR Part 25)...........................................    87,725      
INMARSAT/INTELSAT Signatory (per signatory).............   217,575      
International Circuits (per active 64KB circuit)........         4      
International Public Fixed (per call sign) (47 CFR Part                 
 23)....................................................       200      
International (HF) Broadcast (47 CFR Part 73)...........       255      
------------------------------------------------------------------------


   Appendix E--Comparison Between FY 1995 and FY 1996 Regulatory Fees   
------------------------------------------------------------------------
                                                             Proposed   
                                               Annual         annual    
               Fee category                  regulatory   regulatory fee
                                             fee FY 1995      FY 1996   
------------------------------------------------------------------------
Land Mobile (per license) (220-222 Mhz,                                 
 above 470 Mhz, Base Station and SMRS) (47                              
 CFR Part 90).............................       6               6      
Microwave (per license) (47 CFR Part 101).       6               6      
Interactive Video Data Service (per                                     
 license) (47 CFR Part 95)................       6               6      
Marine (Ship) (per station) (47 CFR Part                                
 80)......................................       3               3      
Marine (Coast) (per license) (47 CFR Part                               
 80)......................................       3               3      
General Mobile Radio Service (per license)                              
 (47 CFR Part 95).........................       3               3      
Land Mobile (per license) (all stations                                 
 not covered above).......................       3               3      
Aviation (Aircraft) (per station) (47 CFR                               
 Part 87).................................       3               3      
Aviation (Ground) (per license) (47 CFR                                 
 Part 87).................................       3               3      
Amateur Vanity Call Signs (per call sign)                               
 (47 CFR Part 97).........................       3               3      

[[Page 16443]]

                                                                        
CMRS Mobile Services (per unit) (47 CFR                                 
 Parts 20, 22, 80 and 90).................        .15             .15   
CMRS One-Way Paging (per unit) (47 CFR                                  
 Parts 20, 22, and 90)....................        .02             .02   
Domestic Public Fixed Radio (per call                                   
 sign) (47 CFR Part 21)...................     140             140      
AM Radio (47 CFR Part 73):                                              
    Class A...............................   1,120           1,125      
    Class B...............................     620             630      
    Class C...............................     250             255      
    Class D...............................     310             315      
    Construction Permits..................     125             125      
FM Radio (47 CFR Part 73):                                              
    Classes C, C1, C2, B..................   1,120           1,125      
    Classes A, B1, C3.....................     745             755      
    Construction Permits..................     620             625      
TV (47 CFR Part 73) VHF Commercial:                                     
    Markets 1-10..........................  22,420          22,700      
    Markets 11-25.........................  19,925          20,175      
    Markets 26-50.........................  14,950          15,125      
    Markets 51-100........................   9,975          10,100      
    Remaining Markets.....................   6,225           6,300      
    Construction Permits..................   4,975           5,025      
TV (47 CFR Part 73) UHF Commercial:                                     
    Markets 1-10..........................  17,925          18,150      
    Markets 11-25.........................  15,950          16,150      
    Markets 26-50.........................  11,950          12,100      
    Markets 51-100........................   7,975           8,075      
    Remaining Markets.....................   4,975           5,025      
    Construction Permits..................   3,975           4,025      
Satellite Television Stations (All                                      
 Markets).................................     620             625      
Construction Permits--Satellite Television                              
 Stations.................................     225             230      
Low Power TV, TV/FM Translators & Boosters                              
 (47 CFR Part 74).........................     170             170      
Broadcast Auxiliary (47 CFR Part 74)......      30              30      
Multipoint Distribution Service (per call                               
 sign) (47 CFR Part 21)...................     140             140      
Cable Antenna Relay Service (47 CFR Part                                
 78)......................................     290             295      
Cable Television Systems (per subscriber)                               
 (47 CFR Part 76).........................        .49             .50   
Interstate Telephone Service Providers                                  
 (per revenue dollar).....................        .00088          .00089
Earth Stations (47 CFR Part 25)...........     330             335      
Space Stations (per operational station in                              
 geosynchronous orbit) (47 CFR Part 25)...  75,000          63,500      
Also includes Direct Broadcast Satellite                                
 Service (per operational station) (47 CFR                              
 Part 100)................................     n/a          63,500      
Earth Orbit Satellite (per operational                                  
 system) (47 CFR Part 25).................     n/a          87,725      
INMARSAT/INTELSAT Signatory (per                                        
 signatory)...............................     n/a         217,575      
International Circuits (per active 64KB                                 
 circuit).................................       4               4      
International Public Fixed (per call sign)                              
 (47 CFR Part 23).........................     200             200      
International (HF) Broadcast (47 CFR Part                               
 73)......................................     250             255      
------------------------------------------------------------------------



Appendix F--FY 1996 Guidelines for Regulatory Fee Categories

    1. The guidelines below provide an explanation of regulatory fee 
categories established by the Schedule of Regulatory Fees in Section 
9(g) of the Communications Act, 47 U.S.C. 159(g) as modified in the 
instant Notice of Proposed Rulemaking. Where regulatory fee 
categories need interpretation or clarification, we have relied on 
the legislative history of Section 9, our own experience in 
establishing and regulating the Schedule of Regulatory Fees for 
Fiscal Years (FY) 1994 and 1995 and the services subject to the fee 
schedule, and the comments of the parties in our proceeding to adopt 
fees for FY 1995. The categories and amounts set out in the schedule 
have been modified to reflect changes in the number of payment 
units, additions and changes in the services subject to the fee 
requirement and the benefits derived from the Commission's 
regulatory activities, and to simplify the structure of the 
schedule. The schedule may be similarly modified or adjusted in 
future years to reflect changes in the Commission's budget and in 
the services regulated by the Commission. See 47 U.S.C. 159(b) (2), 
(3).
    2. Exemptions. Most licensees and other entities regulated by 
the Commission must pay regulatory fees in 1996. However, 
governments and nonprofit (exempt under Section 501 of the Internal 
Revenue Code) entities are exempt from paying regulatory fees and 
should not submit payment, but may be asked to submit a current IRS 
Determination Letter documenting its nonprofit status, a 
certification of governmental authority, or certification from a 
governmental entity attesting to its exempt status. The governmental 
exemption applies even where the government-owned or community-owned 
facility is in direct competition with commercial stations. Other 
specific exemptions are discussed below in association with a 
particular service category or group.

1. Private Wireless Radio Services

    3. Two levels of statutory fees were established for the Private 
Wireless Radio Services--exclusive use services and shared use 
services. Thus, licensees who generally receive a higher quality 
communication channel due to exclusive or lightly shared frequency 
assignments, will pay a higher fee than those who share marginal 
quality assignments. This dichotomy is consistent with the directive 
of section 9 that the regulatory fees reflect the benefits provided 
to the licensees. See 47 U.S.C. 159(b)(1)(A). In addition, because 
of the generally small amount of the fees assessed against Private 
Wireless Radio Service licensees, applicants for new licenses and 
reinstatements and for renewal of existing licenses are required to 
pay a regulatory fee covering the entire license term, with only a 
percentage of all licensees paying a regulatory fee in any one year. 
Applications for modification or assignment of existing 
authorizations do not require the payment of regulatory fees. The

[[Page 16444]]

expiration date of those authorizations will reflect only the 
unexpired term of the underlying license rather than a new license 
term.

a. Exclusive Use Services

    4. Land Mobile Services: Regulatees in this category include 
those authorized under Part 90 of the Commission's Rules to provide 
limited access Wireless Radio service that allows high quality voice 
or digital communications between vehicles or to fixed stations to 
further the business activities of the licensee. These services, 
using the 220-222 MHz band and frequencies at 470 MHz and above, may 
be offered on a private carrier basis in the Specialized Mobile 
Radio Services (SMRS).1
---------------------------------------------------------------------------

    \1\ This category only applies to licensees of shared-use 
private 220-222 MHz and 470 MHz and above in the Specialized Mobile 
Radio (SMR) service who have elected not to change to the Commercial 
Mobile Radio Service (CMRS). Those who have elected to change to the 
CMRS are referred to paragraph 14 of this Appendix.
---------------------------------------------------------------------------

    For FY 1996, Land Mobile licensees will pay a $6 annual 
regulatory fee per license, payable for an entire five or ten year 
license term at the time of application for a new, renewal or 
reinstatement license.2 The total regulatory fee due is either 
$30 for a license with a five year term or $60 for a license with a 
10 year term.
---------------------------------------------------------------------------

    \2\ Although this fee category includes licenses with ten year 
terms, the estimated volume of ten year license applications in FY 
1996 is less than one tenth of one percent and, therefore, is 
statistically insignificant.
---------------------------------------------------------------------------

    5. Microwave Services: These services include private microwave 
systems and private carrier systems authorized under Part 101 of the 
Commission's Rules to provide telecommunications services between 
fixed points on a high quality channel of communications. Microwave 
systems are often used to relay data and to control railroad, 
pipeline and utility equipment. For FY 1996, Microwave licensees 
will pay a $6 annual regulatory fee per license, payable for an 
entire ten year license term at the time of application for a new, 
renewal or reinstatement license. The total regulatory fee due is 
$60 for the ten year license term.
    6. Interactive Video Data Service (IVDS): The IVDS is a two-way 
point-to-multi-point radio service allocated high quality channels 
of communications and authorized under Part 95 of the Commission's 
Rules. The IVDS provides information, products and services, and 
also the capability to obtain responses from subscribers in a 
specific service area. The IVDS is offered on a private carrier 
basis. For FY 1996, IVDS licensees will pay a $6 annual regulatory 
fee per license, payable for an entire five year license term at the 
time of application for a new, renewal, or reinstatement license. 
The total regulatory fee due is $30 for the five year term of the 
license.
b. Shared Use Services
    7. Marine (Ship) Service: This service is a shipboard radio 
service authorized under Part 80 of the Commission's Rules to 
provide telecommunications between watercraft or between watercraft 
and shore-based stations. Radio installations are required by 
domestic and international law for large passenger or cargo vessels. 
Radio equipment may be voluntarily installed on smaller vessels, 
such as recreational boats. The recently enacted Telecommunications 
Act of 1996 gave the Commission the authority to license certain 
ship stations by rule rather than by individual license. Private 
boat operators sailing entirely within domestic U.S. waters and who 
are not otherwise required by treaty or agreement to carry a radio, 
may no longer be required to hold a marine license if the Commission 
enacts rules to that effect, and they will not be required to pay a 
regulatory fee. For FY 1996, parties required to be licensed and 
those choosing to be licensed for Marine (Ship) Stations will pay a 
$3 annual regulatory fee per station, payable for an entire ten year 
license term at the time of application for a new, renewal or 
reinstatement license. The total regulatory fee due is $30 for the 
ten year license term.
    8. Marine (Coast) Service: This service includes land-based 
stations in the maritime services, authorized under Part 80 of the 
Commission's Rules, to provide communications services to ships and 
other watercraft in coastal and inland waterways. For FY 1996, 
licensees of Marine (Coast) Stations will pay a $3 annual regulatory 
fee per call sign, payable for the entire five year license term at 
the time of application for a new, renewal or reinstatement license. 
The total regulatory fee due is $15 per call sign for the five year 
license term.
    9. Private Land Mobile (Other) Services: These services include 
Land Mobile Radio Services operating under Parts 90 and 95 of the 
Commission's Rules. Services in this category provide one or two way 
communications between vehicles, persons or to fixed stations on a 
shared basis and include radiolocation services, industrial radio 
services and land transportation radio services. For FY 1996, 
licensees of services in this category will pay a $3 annual 
regulatory fee per call sign, payable for an entire five year 
license term at the time of application for a new, renewal or 
reinstatement license. The total regulatory fee due is $15 for the 
five year license term.
    10. Aviation (Aircraft) Service: These services include stations 
authorized to provide communications between aircraft and from 
aircraft to ground stations and includes frequencies used to 
communicate with air traffic control facilities pursuant to Part 87 
of the Commission's Rules. The recently enacted Telecommunications 
Act of 1996 gave the Commission the authority to license certain 
aircraft radio stations by rule rather than by individual license. 
Private aircraft operators flying entirely within domestic U.S. 
airspace and who are not otherwise required by treaty or agreement 
to carry a radio, may no longer be required to hold an aircraft 
license if the Commission enacts rules to that effect, and they will 
not be required to pay a regulatory fee. For FY 1996, parties 
required to be licensed and those choosing to be licensed for 
Aviation (Aircraft) Stations will pay a $3 annual regulatory fee per 
station, payable for the entire ten year license term at the time of 
application for a new, renewal or reinstatement license. The total 
regulatory fee due is $30 per station for the ten year license term.
    11. Aviation (Ground) Service: This service includes stations 
authorized to provide ground-based communications to aircraft for 
weather or landing information, or for logistical support pursuant 
to Part 87 of the Commission's Rules. Certain ground-based stations 
which only serve itinerant traffic; i.e., possess no actual units on 
which to assess a fee, are exempt from payment of regulatory fees. 
For FY 1996, licensees of Aviation (Ground) Stations will pay a $3 
annual regulatory fee per license, payable for the entire five year 
license term at the time of application for a new, renewal or 
reinstatement license. The total regulatory fee is $15 per call sign 
for the five year license term.
    12. General Mobile Radio Service (GMRS): These services include 
Land Mobile Radio licensees providing personal and limited business 
communications between vehicles or to fixed stations for short-
range, two-way communications pursuant to Part 95 of the 
Commission's Rules. For FY 1996, GMRS licensees will pay a $3 annual 
regulatory fee per license, payable for an entire five year license 
term at the time of application for a new, renewal or reinstatement 
license. The total regulatory fee due is $15 per license for the 
five year license term.

c. Amateur Radio Vanity Call Signs

    13. Amateur Vanity Call Signs: This fee covers voluntary 
requests for specific call signs in the Amateur Radio Service 
authorized under part 97 of the Commission's Rules. For FY 1996, 
applicants for Amateur Vanity Call-Signs will pay a $3 annual 
regulatory fee per call sign, payable for an entire ten year license 
term at the time of application for a vanity call sign. The total 
regulatory fee due would be $30 per license for the ten year license 
term.3
---------------------------------------------------------------------------

    \3\ Section 9(h) exempts ``amateur radio operator licenses under 
Part 97 of the Commission's rules (47 CFR Part 97)'' from the 
requirement. However, Section 9(g)'s fee schedule explicitly 
includes ``Amateur vanity call signs'' as a category subject to the 
payment of a regulatory fee.
---------------------------------------------------------------------------

d. Commercial Wireless Radio Services

    14. Commercial Mobile Radio Services (CMRS) Mobile Services: The 
Commercial Mobile Radio Service (CMRS) is a new ``umbrella'' 
descriptive term attributed to various existing services authorized 
to provide interconnected mobile radio services for profit to the 
public, or to such classes of eligible users as to be effectively 
available to a substantial portion of the public. CMRS Mobile 
Services include certain licensees which formerly were licensed as 
part of the Private Radio Services (e.g., Specialized Mobile Radio 
Services) and others formerly licensed as part of the Common Carrier 
Radio Services (e.g., Public Mobile Services and Cellular Radio 
Service). While specific rules pertaining to each covered service 
remain in separate Parts 22, 80 and 90; general rules for CMRS are 
contained in Part 20. We have replaced the Public Mobile/Cellular 
Radio regulatory fee category with a CMRS Mobile Services category 
for regulatory fee collection purposes. CMRS Mobile Services will

[[Page 16445]]

include: qualifying Business Radio Services, 220-222 MHz Land Mobile 
Systems, Specialized Mobile Radio Services (Part 90); 4 Public 
Coast Stations (Part 80); Public Mobile Radio, Cellular, 800MHz Air-
Ground Radiotelephone, and Offshore Radio Services (Part 22). Each 
licensee in this group will pay an annual regulatory fee for each 
mobile or cellular unit (mobile or cellular call sign or telephone 
number), including two-way paging units, assigned to its customers, 
including resellers of its services. For FY 1996, the regulatory fee 
is $.15 per unit.
---------------------------------------------------------------------------

    \4\ This category does not include licensees of private shared-
use 220 MHz and 470 MHz and above in the Specialized Mobile Radio 
(SMR) service who have elected to remain non-commercial. Those who 
have elected not to change to the Commercial Mobile Radio Service 
(CMRS) are referred to paragraph 4 of this Appendix.
---------------------------------------------------------------------------

    15. Personal Communications Service (PCS): For FY 1996, the 
Personal Communications Service (PCS) covered by Part 24 of the 
rules is exempt from payment of regulatory fees.
    16. Commercial Mobile Radio Services (CMRS) One-Way Paging 
Services: The Commercial Mobile Radio Service (CMRS) is a new 
``umbrella'' descriptive term attributed to various existing 
services authorized to provide interconnected mobile radio services 
for profit to the public, or to such classes of eligible users as to 
be effectively available to a substantial portion of the public. 
CMRS One-Way Paging Services include certain licensees which 
formerly were licensed as part of the Private Radio Services (e.g., 
Private Paging) and others formerly licensed as part of the Common 
Carrier Radio Services (e.g., Public Mobile One-Way Paging). While 
specific rules pertaining to each covered service remain in separate 
Parts 22 and 90; general rules for CMRS are contained in Part 20. We 
have replaced the Public Mobile One-Way Paging regulatory fee 
category with a CMRS One-Way Paging Services category for regulatory 
fee collection purposes. Each licensee in the Public Mobile One-Way 
Paging Services will pay an annual regulatory fee for each paging 
unit, assigned to its customers, including resellers of its 
services. For FY 1996, the regulatory fee is $.02 per unit.

2. Mass Media Services

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

a. Commercial AM and FM Radio

    18. These categories include licensed Commercial AM (Classes A, 
B, C, and D) and FM (Classes A, B, B1, C, C1, C2, and C3) Radio 
Stations operating under Part 73 of the Commission's Rules.5 
The regulatory fees for AM and FM Stations for FY 1996 are as 
follows:
---------------------------------------------------------------------------

    \5\ The Commission acknowledges that certain stations operating 
in Puerto Rico and Guam have been assigned a higher level station 
class than would be expected if the station were located on the 
mainland. Although this results in a higher regulatory fee, we 
believe that the increased interference protection associated with 
the higher station class is necessary and justifies the fee.

AM Radio:                                                               
  Class A.....................................................    $1,125
  Class B.....................................................       630
  Class C.....................................................       255
  Class D.....................................................       315
FM Radio:                                                               
  Classes C, C1, C2, B........................................     1,125
  Classes A, B1, C3...........................................       755
                                                                        

b. Construction Permits--Commercial AM Radio

    19. This category includes holders of permits to construct new 
Commercial AM Stations. For FY 1996, permittees will pay a fee of 
$125 for each permit held. Upon issuance of an operating license, 
this fee would no longer be applicable and licensees would be 
required to pay the applicable fee for the designated class of the 
station.

c. Construction Permits--Commercial FM Radio

    20. This category includes holders of permits to construct new 
Commercial FM Stations. For FY 1996, permittees will pay a fee of 
$625 for each permit held. Upon issuance of an operating license, 
this fee would no longer be applicable. Instead, licensees would pay 
a regulatory fee based upon the designated class of the station.

d. Commercial Television Stations

    21. This category includes licensed Commercial VHF and UHF 
Television Stations covered under Part 73 of the Commission's Rules, 
except commonly owned Television Satellite Stations, addressed 
separately below. Markets are Nielsen Designated Market Areas (DMA) 
as listed in the Television & Cable Factbook, Stations Volume No. 
63, 1995 Edition, Warren Publishing, Inc. The fees for each category 
of station are as follows:

VHF Markets 1-10--$22,700
VHF Markets 11-25--$20,175
VHF Markets 26-50--$15,125
VHF Markets 51-100--$10,100
VHF Remaining Markets--$6,300
UHF Markets 1-10--$18,150
UHF Markets 11-25--$16,150
UHF Markets 26-50--$12,100
UHF Markets 51-100--$8,075
UHF Remaining Markets--$5,025

e. Commercial Television Satellite Stations

    22. Commonly owned Television Satellite Stations in any market 
(authorized pursuant to Note 5 of Section 73.3555 of the 
Commission's Rules) that retransmit programming of the primary 
station are assessed a fee of $625 annually. Only those stations 
designated as Television Satellite Stations in the 1995 Edition of 
the Television and Cable Factbook are eligible to submit the fee 
applicable to Television Satellite Stations. All other television 
licensees are subject to the regulatory fee payment required for 
their class of station and market.

f. Construction Permits--Commercial VHF Television Stations

    23. This category includes holders of permits to construct new 
Commercial VHF Television Stations. For FY 1996, VHF permittees will 
pay an annual regulatory fee of $5,025. Upon issuance of an 
operating license, this fee would no longer be applicable. Instead, 
licensees would pay a fee based upon the designated market of the 
station.

g. Construction permits--Commercial UHF Television Stations

    24. This category includes holders of permits to construct new 
UHF Television Stations. For FY 1996, UHF Television permittees will 
pay an annual regulatory fee of $4,025. Upon issuance of an 
operating license, this fee would no longer be applicable. Instead, 
licensees would pay a fee based upon the designated market of the 
station.

h. Construction Permits--Satellite Television Stations

    25. The fee for UHF and VHF Television Satellite Station 
construction permits for FY 1996 is $230. An individual regulatory 
fee payment is to be made for each Television Satellite Station 
construction permit held.

i. Low Power Television, FM Translator and Booster Stations, TV 
Translator and Booster Stations

    26. This category includes Low Power UHF/VHF Television stations 
operating under Part 74 of the Commission's Rules with a transmitter 
power output limited to 0.01 kw for a UHF facility and, generally, 1 
kw for a VHF facility. Low Power Television (LPTV) stations may 
retransmit the programs and signals of a TV Broadcast Station, 
originate programming, and/or operate as a subscription service. 
This category also includes translators and boosters operating under 
Part 74 which rebroadcast the signals of full service stations on a 
frequency different from the parent station (translators) or on the 
same frequency (boosters). The stations in this category are 
secondary to full service stations in terms of frequency priority. 
We have also received requests for waivers of the regulatory fees 
from operators of community based Translators. These Translators are 
generally not affiliated with commercial broadcasters, they are 
nonprofit, nonprofitable, or only marginally profitable, serve small 
rural communities, and are supported financially by the residents of 
the communities served. We are aware of the difficulties these 
Translators have in paying even minimal regulatory fees, and we have 
addressed those concerns in the ruling on reconsideration of the FY 
1994 Order. Community based Translators are exempt from regulatory 
fees. For FY 1996, licensees in this category will pay a regulatory 
fee of $170 for each license held.

j. Broadcast Auxiliary Stations

    27. This category includes licensees of remote pickup stations, 
Aural Broadcast Auxiliary Stations, Television Broadcast Auxiliary 
Stations, and Low Power Auxiliary Stations, authorized under Part 74 
of the Commission's Rules. Auxiliary Stations are generally 
associated with a particular television or radio broadcast station 
or cable television system. For FY 1996, licensees of Commercial 
Auxiliary Stations will pay a $30 annual regulatory fee on a per 
call sign basis.

[[Page 16446]]

k. Multipoint Distribution Service

    28. This category covers Multipoint Distribution Service (MDS), 
and Multichannel Multipoint Distribution Service (MMDS), authorized 
under Part 21 of the Commission's Rules to use microwave frequencies 
for video and data distribution within the United States. For FY 
1996, MDS and MMDS stations will pay an annual regulatory fee of 
$140 per call sign.

3. Cable Services

a. Cable Television Systems

    29. This category includes operators of Cable Television 
Systems, providing or distributing programming or other services to 
subscribers under Part 76 of the Commission's Rules. For FY 1996 
Cable Systems will pay a regulatory fee of $.50 per 
subscriber.6 Payments for Cable Systems are to be made on a per 
subscriber by community unit basis as of December 31, 1995, as 
reported on each Cable Systems's 1995 Annual Report of Cable Systems 
(FCC Form 325). Cable Systems should determine their subscriber 
numbers by calculating the number of single family dwellings, the 
number of individual households in multiple dwelling units, e.g., 
apartments, condominiums, mobile home parks, etc., paying at the 
basic subscriber rate, the number of bulk rate customers and the 
number of courtesy or fee customers. In order to determine the 
number of bulk rate subscribers, a system should divide its bulk 
rate charge by the annual subscription rate for individual 
households. See FY 1994 Order, Appendix B at para. 31.
---------------------------------------------------------------------------

    \6\ Cable systems are to pay their regulatory fees on a per 
subscriber basis rather than per 1,000 subscribers as set forth in 
the statutory fee schedule. See FY 1994 Order at para. 100.
---------------------------------------------------------------------------

b. Cable Antenna Relay Service

    30. This category includes Cable Antenna Relay Service (CARS) 
stations used to transmit television and related audio signals, 
signals of AM and FM Broadcast Stations and cablecasting from the 
point of reception to a terminal point from where the signals are 
distributed to the public by a Cable Television System. For FY 1996, 
licensees will pay an annual regulatory fee of $295 per CARS 
license.

4. Common Carrier Services

a. Fixed Radio Services

    31. Domestic Public Fixed Radio Service: This category includes 
licensees in the Point-to-Point Microwave Radio Service, Local 
Television Transmission Radio Service, Digital Electronic Message 
Service, authorized under Part 21 of the Commission's Rules to use 
microwave frequencies for video and data distribution within the 
United States. For FY 1996, Domestic Public Fixed Radio Service 
licensees pay a $140 annual regulatory fee per call sign.

b. Interstate Telephone Service Providers

    32. This category includes Inter-Exchange Carriers (IXCs), Local 
Exchange Carriers (LECs), Competitive Access Providers (CAPs), 
domestic and international carriers that provide operator services, 
Wide Area Telephone Service (WATS), 800, 900, telex, telegraph, 
video, other switched, interstate access, special access, and 
alternative access services either by using their own facilities or 
by reselling facilities and services of other carriers or telephone 
carrier holding companies, and companies other than traditional 
local telephone companies that provide interstate access services to 
long distance carriers and other customers. This category also 
includes pre-paid calling card providers. These common carriers, 
including resellers, must submit fee payments based upon their 
proportionate share of gross interstate revenues using the 
methodology that we have adopted for calculating contributions to 
the TRS fund. See Telecommunications Relay Services, 8 FCC Rcd 5300 
(1993), 58 FR 39671 (July 26, 1993). In order to avoid imposing any 
double payment burden on resellers, we will permit carriers to 
subtract from their gross interstate revenues, as reported to NECA 
in connection with their TRS contribution, any payments made to 
underlying common carriers for telecommunications facilities and 
services, including payments for interstate access service, that are 
sold in the form of interstate service. For this purpose, resold 
telecommunications facilities and services are only intended to 
include payments that correspond to revenues that will be included 
by another carrier reporting interstate revenue. For FY 1996, 
carriers should multiply their adjusted gross revenue figure (gross 
revenue reduced by the total amount of their payments to underlying 
common carriers for telecommunications facilities or services) by 
the factor 0.00089 to determine the appropriate fee for this 
category of service. You may want to use the following worksheet to 
determine your fee payment:

------------------------------------------------------------------------
                                                      Total   Interstate
------------------------------------------------------------------------
(1) Revenue reported in TRS Fund worksheets                             
(2) Less: Access charges paid                                           
(3) Less: Other telecommunications facilities and                       
 services taken for resale                                              
(4) Adjusted revenues (1) minus (2) minus (3)                           
(5) Fee factor.....................................  .......     0.00089
(6) Fee due (4) times (5)                                               
------------------------------------------------------------------------

5. International Services

a. Earth Stations

    33. Very Small Aperture Terminal (VSAT) Earth Stations, 
equivalent C-Band Earth Stations and antennas, and earth station 
systems comprised of very small aperture terminals operate in the 12 
and 14 GHz bands and provide a variety of communications services to 
other stations in the network. VSAT systems consist of a network of 
technically-identical small Fixed-Satellite Earth Stations which 
often include a larger hub station. VSAT Earth Stations and C-Band 
Equivalent Earth Stations are authorized pursuant to Part 25 of the 
Commission's Rules. Mobile Satellite Earth Stations, operating 
pursuant to Part 25 of the Commission's Rules under blanket licenses 
for mobile antennas (transceivers), are smaller than one meter and 
provide voice or data communications, including position location 
information for mobile platforms such as cars, buses or 
trucks.7 Fixed-Satellite Transmit/Receive and Transmit Only 
Earth Station antennas, authorized or registered under Part 25 of 
the Commission's Rules, are operated by private and public carriers 
to provide telephone, television, data, and other forms of 
communications. Included in this category are telemetry, tracking, 
and control (TT&C) earth stations and earth station uplinks. For FY 
1996, licensees of VSATs, Mobile Satellite Earth Stations, and 
Fixed-Satellite Transmit/Receive and Transmit Only Earth Stations 
will pay a fee of $335 per authorization or registration as well as 
a separate fee of $335 for each associated Hub Station.
---------------------------------------------------------------------------

    \7\ Mobile earth stations are vehicle-based units capable of 
operation while the vehicle is in motion. In contrast, transportable 
units are moved to a fixed location and operate in a stationary 
(fixed) mode. Both are assessed the same regulatory fee for FY 1996.
---------------------------------------------------------------------------

    34. Receive only earth stations. For FY 1996, there is no 
regulatory fee for receive-only earth stations.

b. Space Stations (Geosynchronous)

    35. Geosynchronous Space Stations are domestic and international 
satellites positioned in orbit to remain approximately fixed 
relative to the earth. Most are authorized under Part 25 of the 
Commission's Rules to provide communications between satellites and 
earth stations on a common carrier and/or private carrier basis. In 
addition, this category includes Direct Broadcast Satellite (DBS) 
Service which includes space stations authorized under Part 100 of 
the Commission's rules to transmit or re-transmit signals for direct 
reception by the general public encompassing both individual and 
community reception. For FY 1996, entities authorized to operate 
geosynchronous space stations (including DBS satellites) will be 
assessed an annual regulatory fee of $63,500 per operational station 
in orbit. Payment is required for any geosynchronous satellite that 
has been launched and tested and is authorized to provide service.

c. Low Earth Orbit Satellites (LEOs)

    36. Low Earth Orbit Satellite Systems are space stations that 
orbit the earth in non-geosynchronous orbit. They are authorized 
under Part 25 of the Commission's rules to provide communications 
between satellites and earth stations on a common carrier and/or 
private carrier basis. For FY 1996, entities authorized to operate 
Low Earth Orbit Satellite Systems will be assessed an annual 
regulatory fee of $87,725 per operational system in orbit. Payment 
is required for any LEO System that has one or more operational 
satellites.

[[Page 16447]]

d. Signatories

    37. A Signatory to INMARSAT is an Administration or government, 
or the telecommunications entity designated as sole operating entity 
by an Administration or government, which participates in the 
International Mobile Satellite Organization (INMARSAT) in order to 
develop and operate a global maritime satellite telecommunication 
system which serves maritime commercial and safety needs of the 
United States and foreign countries. A Signatory to INTELSAT is an 
Administration or government, or the telecommunications entity 
designated as sole operating entity by an Administration or 
government, which participates in the International 
Telecommunications Satellite Organization (INTELSAT) in order to 
develop, construct, operate and maintain the space segment of the 
global commercial telecommunications satellite system established 
under the Interim Agreement and Special Agreement signed by 
Governments on August 20, 1964. For FY 1996, Signatories to INMARSAT 
and INTELSAT will be assessed an annual regulatory fee of $217,575 
in order to recover the cost of the Commission's regulatory 
activities associated with such entities.

e. International Bearer Circuits

    38. Regulatory fees for International Bearer Circuits are to be 
paid by the facilities-based common carrier activating the circuit 
in any transmission facility for the provision of service to an end 
user or resale carrier. Payment of the fee for bearer circuits by 
private submarine cable operators is required for circuits sold on 
an indefeasible right of use (IRU) basis or leased to any customer 
other than an international common carrier authorized by the 
Commission to provide U.S. international common carrier services. 
Compare FY 1994 Order at 5367. The fee is based upon active 64 Kbps 
circuits, or equivalent circuits. Under this formulation, 64 Kbps 
circuits or their equivalent will be assessed a fee. Equivalent 
circuits include the 64 Kbps circuit equivalent of larger bit stream 
circuits. For example, the 64 Kbps circuit equivalent of a 2.048 
Mbps circuit is 30 64 Kbps circuits. Analog circuits such as 3 and 4 
KHz circuits used for international service are also included as 64 
Kbps circuits. However, circuits derived from 64 Kbps circuits by 
the use of digital circuit multiplication systems are not equivalent 
64 Kbps circuits. Such circuits are not subject to fees. Only the 64 
Kbps circuit from which they have been derived will be subject to 
payment of a fee. For FY 1996, the regulatory fee is $4.00 for each 
active 64 Kbps circuit or equivalent. For analog television channels 
we will assess fees as follows:

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

f. International Public Fixed

    39. This fee category includes common carriers authorized under 
Part 23 of the Commission's Rules to provide radio communications 
between the United States and a foreign point via microwave or HF 
troposcatter systems, other than satellites and satellite earth 
stations, but not including service between the United States and 
Mexico and the United States and Canada using frequencies above 72 
MHz. For FY 1996, International Public Fixed Radio Service licensees 
will pay a $200 annual regulatory fee per call sign.

g. International (HF) Broadcast

    40. This category covers International Broadcast Stations 
licensed under Part 73 of the Commission's Rules to operate on 
frequencies in the 5,950 khz to 26,100 Khz range to provide service 
to the general public in foreign countries. For FY 1996, 
International HF Broadcast Stations will pay an annual regulatory 
fee of $255 per station license.

[FR Doc. 96-9192 Filed 4-12-96; 8:45 am]
BILLING CODE 6712-01-P