[Federal Register Volume 66, Number 73 (Monday, April 16, 2001)]
[Proposed Rules]
[Pages 19682-19711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9407]



[[Page 19681]]

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Part IV





Federal Communication Commission





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47 CFR Part 1



Assessment and Collection of Regulatory Fees for Fiscal Year 2001; 
Proposed Rule

  Federal Register / Vol. 66, No. 73 / Monday, April 16, 2001 / 
Proposed Rules  

[[Page 19682]]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 01-76; FCC 01-97]


Assessment and Collection of Regulatory Fees for Fiscal Year 2001

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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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 2001. Section 9 of 
the Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees under sections 9(b) (2) 
and (b) (3), respectively, for annual ``Mandatory Adjustments'' and 
``Permitted Amendments'' to the Schedule of Regulatory Fees.

DATES: Comments are due on or before April 27, 2001, and reply comments 
are due on or before May 7, 2001.

FOR FURTHER INFORMATION CONTACT: Terry Johnson, Office of Managing 
Director at (202) 418-0445 or Roland Helvajian, Office of Managing 
Director at (202) 418-0444.

SUPPLEMENTARY INFORMATION:
    Adopted: March 19, 2001; Released: March 29, 2001.
    By the Commission:

Table of Contents

I. Introduction
II. Background
III. Discussion
    A. Summary of FY 2001 Fee Methodology
    B. Development of FY 2001 Fees
    i. Adjustment of Payment Units
    ii. Calculation of Revenue Requirements
    iii. Recalculation of Fees
    C. Procedures for Payment of Regulatory Fees
    i. Annual Payments of Standard Fees
    ii. Installment Payments for Large Fees
    iii. Advance Payments of Small Fees
    iv. Minimum Fee Payment Liability
    v. Standard Fee Calculations and Payments
    vi. Mandatory Use of FCC Registration Number (FRN)
    D. Schedule of FY 2001 Regulatory Fees
    E. Revised Rules for Waivers, Reductions, and Deferrals
    F. Enforcement
IV. Procedural Matters
    A. Comment Period and Procedures
    B. Ex Parte Rules
    C. Initial Regulatory Flexibility Analysis
    D. Authority and Further Information
Attachment A--Initial Regulatory Flexibility Analysis
Attachment B--Sources of Payment Unit Estimates For FY 2001
Attachment C--Calculation of Revenue Requirements and Pro-Rata Fees
Attachment D--FY 2001 Schedule of Regulatory Fees
Attachment E--Comparison Between FY 2000 and FY 2001 Proposed 
Regulatory Fees
Attachment F--Detailed Guidance on Who Must Pay Regulatory Fees
Attachment G--Description of FCC Activities
Attachment H--Factors, Measurements, and Calculations that Determine 
Station Signal Contours and Population Coverages

I. Introduction

    1. By this Notice of Proposed Rulemaking, the Commission begins a 
proceeding to revise its Schedule of Regulatory Fees to collect the 
amount of regulatory fees that Congress, pursuant to section 9(a) of 
the Communications Act, as amended, has required us to collect for 
Fiscal Year (FY) 2001.\1\
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    \1\ 47 U.S.C. 159 (a).
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    2. Congress has required that we collect $200,146,000 through 
regulatory fees to recover the costs of our competition, enforcement, 
spectrum management, and consumer information activities for FY 
2001.\2\ This amount is $14,392,000 or approximately 7.75% more than 
the amount that Congress designated for recovery through regulatory 
fees for FY 2000.\3\ We are proposing to revise our fees in order to 
collect the amount that Congress has specified, as illustrated in a new 
fee schedule in Attachment D.
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    \2\ Public Law 106-553 and 47 U.S.C. 159(a)(2).
    \3\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2000, 65 FR 44576 (2000).
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    3. In proposing to revise our fees, we adjusted the payment units 
and revenue requirement for each service subject to a fee, consistent 
with section 159(b)(2). The current Schedule of Regulatory Fees is set 
forth in Secs. 1.1152 through 1.1156 of the Commission's rules.\4\
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    \4\ 47 CFR 1.1152 through 1.1156.
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II. Background

    4. Section 9(a) of the Communications Act of 1934, as amended, 
authorizes the Commission to assess and collect annual regulatory fees 
to recover the costs, as determined annually by Congress, that it 
incurs in carrying out enforcement, policy and rulemaking, 
international, and user information activities.\5\ See Attachment G for 
a description of these activities. In our FY 1994 Fee Order,\6\ we 
adopted the Schedule of Regulatory Fees that Congress established, and 
we prescribed rules to govern payment of the fees, as required by 
Congress.\7\ Subsequently, we modified the fee schedule to increase the 
fees in accordance with the amounts Congress required us to collect in 
each succeeding fiscal year. We are also amending the rules governing 
our regulatory fee program based upon our prior experience in 
administering the program.\8\
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    \5\ 47 U.S.C. 159(a).
    \6\ 59 FR 30984 (1994).
    \7\ 47 U.S.C. 159(b), (f)(1).
    \8\ 47 CFR 1.1151 et seq.
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    5. As noted, 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 (b)(3), respectively, provide for 
``Mandatory Adjustments'' and ``Permitted Amendments'' to the Schedule 
of Regulatory Fees.\9\ Section 9(b)(2), entitled ``Mandatory 
Adjustments,'' requires that we revise the Schedule of Regulatory Fees 
to reflect the amount that Congress requires us to recover through 
regulatory fees.\10\
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    \9\ 47 U.S.C. 159(b)(2), (b)(3).
    \10\ 47 U.S.C. 159(b)(2).
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    6. Section 9(b)(3), entitled ``Permitted Amendments,'' requires 
that we determine annually whether additional adjustments to the fees 
are warranted, taking into account factors that are in the public 
interest, as well as issues that are reasonably related to the payer of 
the fee. These amendments permit us to ``add, delete, or reclassify 
services in the Schedule to reflect additions, deletions or changes in 
the nature of its services * * *'' \11\
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    \11\ 47 U.S.C. 159(b)(3).
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    7. Section 9(i) requires that we develop accounting systems 
necessary to adjust our fees pursuant to changes in the cost of 
regulating various services that are subject to a fee, and for other 
purposes.\12\ The Commission is in the process of planning a new cost 
accounting system, which we expect to be in place in FY 2002. For FY 
1997, we relied for the first time on cost accounting data to identify 
our regulatory costs and to develop our FY 1997 fees based upon these 
costs. Also, in FY 1997, we found that some fee categories received 
disproportionately high cost allocations. We adjusted for these high 
cost allocations by redistributing the costs, and maintained a 25% 
limit on the extent in which service fee categories can be increased. 
We believed that this 25% limit would enable cost-based service fees to 
be implemented more gradually over time. We thought that this 
methodology, which we continued to use for FY 1998, would enable us to 
develop a regulatory fees schedule that reflected our cost of 
regulation. Over time, as the cost of regulation increases or 
decreases, this methodology would enable us to revise

[[Page 19683]]

the fee schedule to reflect those services whose regulatory costs had 
changed.
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    \12\ 47 U.S.C. 159(i).
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    8. However, we found that developing a regulatory fee structure 
based on available cost information sometimes did not permit us to 
recover the amount that Congress required us to collect. In some 
instances, the large increases in the cost of regulation did not 
normalize to an acceptable level. We concluded that it would be best to 
discontinue attempts to base the entire schedule on our available cost 
data. Instead, we chose to base the FY 1999 and FY 2000 fees on the 
basis of ``Mandatory Adjustments'' only. We have found no reason to 
deviate from this policy for FY 2001. However, we are proposing to 
apply the ``Mandatory Adjustments'' differently to better incorporate 
changes in payment units. As noted above, however, we expect to have a 
new cost accounting system in place in FY 2002. Finally, section 
9(b)(4)(B) requires us to notify Congress of any permitted amendments 
90 days before those amendments go into effect.\13\
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    \13\ 47 U.S.C. 159(b)(4)(B).
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III. Discussion

A. Summary of FY 2001 Fee Methodology

    9. As noted above, Congress has required that the Commission 
recover $200,146,000 for FY 2001 through the collection of regulatory 
fees, representing the costs applicable to our enforcement, policy and 
rulemaking, international, and user information activities.\14\
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    \14\ 47 U.S.C. 159(a).
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    10. In developing our proposed FY 2001 fee schedule, we first 
estimated the number of payment units \15\ for FY 2001. Then we 
compared the FY 2000 revenue estimate amount to the $200,146,000 that 
Congress has required us to collect in FY 2001 and pro-rated the 
difference among all the existing fee categories. Finally, we divided 
the FY 2001 payment unit estimates into the pro-rated FY 2001 revenue 
estimates to determine the new FY 2001 fees. See Attachment C.
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    \15\ Payment units are the number of subscribers, mobile units, 
pagers, cellular telephones, licenses, call signs, adjusted gross 
revenue dollars, etc. which represent the base volumes against which 
fee amounts are calculated.
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    11. Once we established our tentative FY 2001 fees, we evaluated 
proposals made by Commission staff concerning ``Permitted Amendments'' 
to the Fee Schedule and to our collection procedures. We are not 
proposing to make any ``Permitted Amendments.'' Collection procedure 
matters are discussed in paragraphs 17-24.
    12. Finally, we have incorporated, as Attachment F, proposed 
Guidance containing detailed descriptions of each fee category, 
information on the individual or entity responsible for paying a 
particular fee and other critical information designed to assist 
potential fee payers in determining the extent of their fee liability, 
if any, for FY 2001.\16\ In the following paragraphs, we describe in 
greater detail our proposed methodology for establishing our FY 2001 
regulatory fees.
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    \16\ We also will incorporate a similar Attachment in the FY 
2001 Report and Order concluding this rulemaking. That Attachment 
will contain updated information concerning any changes made to the 
proposed fees that will be adopted in the FY 2001 Report and Order.
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B. Development of FY 2001 Fees

i. Adjustment of Payment Units
    13. In calculating FY 2001 regulatory fees for each service, we 
adjusted the estimated payment units for each service because of 
substantial changes in payment units for many services since adopting 
our FY 2000 fees. We obtained our estimated payment units through a 
variety of means, including our licensee data bases, actual prior year 
payment records, and industry and trade group projections. Whenever 
possible, we verified these estimates from multiple sources to ensure 
accuracy of these estimates. Attachment B summarizes how revised 
payment units were determined for each fee category.\17\
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    \17\ It is important to note also that Congress required a 
revenue increase in regulatory fee payments of approximately 7.75 
percent in FY 2001, which will not fall equally on all payers 
because payment units have changed in several services. When the 
number of payment units in a service increases from one year to 
another, fees do not have to rise as much as they would if payment 
units had decreased or remained stable. Declining payment units have 
the opposite effect on fees.
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ii. Calculation of Revenue Requirements
    14. We compared the sum of all estimated revenue requirements for 
FY 2000 to the amount that Congress has required us to collect for FY 
2001 ($200,146,000), which is approximately 7.75% more total revenue 
than in FY 2000. We increased each FY 2000 fee revenue category 
estimate by 7.75% to provide a total FY 2001 revenue estimate of 
$200,146,000. Attachment C provides detailed calculations showing how 
we determined the revised revenue amounts to be raised for each 
service.
iii. Recalculation of Fees
    15. Once we determined the revenue requirement for each service and 
class of licensee, we divided the revenue requirement by the number of 
estimated payment units (and by the license term for ``small'' fees) to 
obtain actual fee amounts for each fee category. These calculated fee 
amounts were then rounded in accordance with section 9(b)(2) of the 
Act. See Attachment C.
    16. We examined the results of our calculations to determine if 
further adjustments of the fees and/or changes to payment procedures 
were warranted based upon the public interest and other criteria 
established in 47 U.S.C. 159(b)(3). Unless otherwise noted herein, 
nothing in this proceeding is intended to change any policies or 
procedures established or reaffirmed in the FY 2000 Order (65 FR 
44576).

C. Procedures for Payment of Regulatory Fees

    17. With one exception, we propose to retain the procedures that we 
have established for the payment of regulatory fees. See paragraphs 23 
and 24. Section 9(f) requires that we permit ``payment by installments 
in the case of fees in large amounts, and in the case of small amounts, 
shall require the payment of the fee in advance for a number of years 
not to exceed the term of the license held by the payer.'' See 47 
U.S.C. 159(f)(1). Consistent with section 9(f), we are again proposing 
to establish 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. Nothing in this section is new. 
However, it is provided for information and purposes of clarity.
i. Annual Payments of Standard Fees
    18. As we have in the past, we are proposing to treat regulatory 
fee payments by certain licensees as ``standard fees'' which are those 
regulatory fees that are payable in full on an annual basis. Payers of 
standard fees are not required to make advance payments for their full 
license term and are not eligible for installment payments. All 
standard fees are payable in full on the date we establish for payment 
of fees in their regulatory fee category. The payment dates for each 
regulatory fee category will be announced either in the Report and 
Order terminating this proceeding or by public notice in the Federal 
Register pursuant to authority delegated to the Managing Director.
ii. Installment Payments for Large Fees
    19. While time constraints may preclude an opportunity for 
installment payments, we propose that regulatees in any category of 
service with a liability of $12,000 or more be eligible to make

[[Page 19684]]

installment payments. Eligibility for installment payments will be 
based upon the amount of either a single regulatory fee payment or a 
combination of fee payments by the same licensee or regulatee. We 
propose that regulatees eligible to make installment payments may 
submit their required fees in two equal payments (on dates to be 
announced) or, in the alternative, in a single payment on the date that 
their final installment payment is due. However, because of time 
constraints in collecting and recording the fees, it is unlikely that 
there will be sufficient time for installment payments. Therefore, 
regulatees that may be eligible to make installment payments will be 
required to pay these fees on the last date that fee payments may be 
submitted. The dates for installment payments, or a single payment, 
will be announced either in the Report and Order terminating this 
proceeding or by public notice published in the Federal Register 
pursuant to authority delegated to the Managing Director.
iii. Advance Payments of Small Fees
    20. As we have in the past, we are proposing to treat regulatory 
fee payments by certain licensees as ``small'' fees subject to advance 
payment consistent with the requirements of section 9(f)(2). We propose 
that advance payments will be required from licensees of those services 
that we decided would be subject to advance payments in our FY 1994 
Report and Order, and to those additional payers noted.\18\ We are also 
proposing that payers of advance fees will submit the entire fee due 
for the full term of their licenses when filing their initial, renewal, 
or reinstatement application. Regulatees subject to a payment of small 
fees shall pay the amount due for the current fiscal year multiplied by 
the number of years in the term of their requested license. In the 
event that the required fee is adjusted following their payment of the 
fee, the payer would not be subject to the payment of a new fee until 
filing an application for renewal or reinstatement of the license. 
Thus, payment for the full license term would be made based upon the 
regulatory fee applicable at the time the application is filed. The 
effective date for payment of small fees established in this proceeding 
will be announced in our Report and Order terminating this proceeding 
or by public notice published in the Federal Register per authority 
delegated to the Managing Director.
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    \18\ Applicants for new, renewal and reinstatement licenses in 
the following services will be required to pay their regulatory fees 
in advance: Land Mobile Services, Microwave Services, Marine (Ship) 
Service, Marine (Coast) Service, Private Land Mobile (Other) 
Services, Aviation (Aircraft) Service, Aviation (Ground) Service, 
General Mobile Radio Service (GMRS), 218-219 MHz Service (if any 
applications should be filed), Rural Radio Service, and Amateur 
Vanity Call Signs.
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iv. Minimum Fee Payment Liability
    21. As we have in the past, we are proposing that regulatees whose 
total regulatory fee liability, including all categories of fees for 
which payment is due by an entity, amounts to less than $10 will be 
exempted from fee payment in FY 2001.
v. Standard Fee Calculations and Payment Dates
    22. The time for payment of standard fees and any installment 
payments will be announced in our Report and Order terminating this 
proceeding or will be published in the Federal Register pursuant to 
authority delegated to the Managing Director. For licensees and 
permittees of Mass Media services, we propose that the responsibility 
for payment of regulatory fees normally rests with the holder of the 
permit or license on October 1, 2000. However, in instances where a 
Mass Media service license or authorization is transferred or assigned 
after October 1, 2000, and arrangements to make payment have not been 
made by the previous licensee, the fee is still due and we propose that 
the fee shall be paid by the licensee or holder of the authorization on 
the date that the fee payment is due. For licensees, permittees and 
holders of other authorizations in the Common Carrier and Cable 
Services whose fees are not based on a subscriber, unit, or circuit 
count, we are proposing that fees be paid for any authorization issued 
on or before October 1, 2000. Regulatory fees are due and payable by 
the holder of record of the license or permit of the service as of 
October 1, 2000. A pending change in the status of a license or permit 
that is not granted as of that date is not effective, and the fee is 
based on the classification that existed on that date.
    23. For regulatees whose fees are based upon a subscriber, unit or 
circuit count, the number of a regulatees' subscribers, units or 
circuits on December 31, 2000, will be used to calculate the fee 
payment.\19\ Regulatory fees are due and payable by the holder of 
record of the license or permit of the service as of December 31, 2000. 
A pending change in the status of a license or permit that is not 
granted as of that date is not effective, and the fee is based on the 
classification that existed on that date. Where a license or 
authorization is transferred or assigned after December 31, 2000, the 
fee shall be paid by the licensee or holder of the authorization on the 
date that the payment is due.
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    \19\ Cable system operators are to compute their subscribers as 
follows: Number of single family dwellings + number of individual 
households in multiple dwelling unit (apartments, condominiums, 
mobile home parks, etc.) paying at the basic subscriber rate + bulk 
rate customers + courtesy and free service. Note: Bulk-Rate 
Customers = Total annual bulk-rate charge divided by basic annual 
subscription rate for individual households. Cable system operators 
may base their count on ``a typical day in the last full week'' of 
December 2000, rather than on a count as of December 31, 2000.
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vi. Mandatory Use of FCC Registration Number (FRN)
    24. In our pending proceeding on FCC Registration Numbers,\20\ we 
are proposing to mandate the use of FRNs by anyone doing business with 
the agency, including those subject to the regulatory fee program. We 
propose to apply that requirement to the FY 2001 fee collection, and 
are incorporating by reference the record compiled in the FRN 
proceeding. Both fee filers, as well as those who are exempt from 
regulatory fees, will have to obtain an FRN.\21\ Also, as noted in the 
FRN Notice of Proposed Rulemaking (NPRM), entities paying on behalf of 
others will be required to obtain and use the FRNs assigned to those 
entities. These proposals are subject to the outcome of the FRN Notice 
of Proposed Rulemaking.
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    \20\ Adoption of a Mandatory FCC Registration Number, MD Docket 
No. 00-205, FCC 00-421, 65 FR 78455 , December 15, 2000 (released 
December 1, 2000).
    \21\ FRN Notice of Proposed Rulemaking at paragraph 9.
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    25. In the FRN NPRM, we invited comment on how to treat submissions 
that do not contain an FRN once this requirement becomes mandatory. 
With certain limited exceptions, we generally proposed to reject such 
filings.\22\ We invite comment on how we should handle regulatory fee 
filings that do not include an FRN. We tentatively conclude that in 
those situations we should notify the filer that the FRN requirement is 
mandatory and afford a 10-day grace period in which the filer can 
obtain and provide the FRN. If after that time period the filer has not 
done so, we seek comment on whether a penalty can or should be imposed 
in these circumstances, and whether the 10-day grace period is a 
sufficient period of time for the filer to provide the FRN. Section 
1.1164 of the Commission's rules provides for a 25% penalty for late or 
insufficient fee payments. We believe that it would be appropriate to 
extend this provision to

[[Page 19685]]

the situation where a regulatee files a fee without an FRN and does not 
cure the defect during the grace period. In these circumstances, we 
would regard the fee payment as being late for purposes of Section 
1.1164, since it was not timely accompanied by an FRN enabling us to 
ensure fee sufficiency on a timely basis. We propose to revise the rule 
to reflect this approach.
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    \22\ FRN Notice of Proposed Rulemaking at paragraph 23-26.
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D. Schedule of Regulatory Fees

    26. The Commission's proposed Schedule of Regulatory Fees for FY 
2001 is contained in Attachment D of this NPRM.

E. Revised Rules for Waivers, Reductions, and Deferrals of Application 
and Regulatory Fees

    27. We also propose to amend Secs. 1.1117(c) and 1.1166(a) of the 
Rules regarding the filing of requests for waivers, reductions and 
deferrals of both application (Section 8) and regulatory fees (Section 
9). We propose to amend the rules to clarify that all such filings must 
be filed as separate pleadings, and each pleading must be clearly 
marked for the attention of the Managing Director. We hope the revised 
rules will eliminate the confusion regarding the proper filing 
procedures to be followed for such requests, as well as to facilitate 
prompt disposition.

F. Enforcement

    28. As required in 47 U.S.C. 159(c), an additional charge shall be 
assessed as a penalty for late payment of any regulatory fee. A late 
payment penalty of 25 percent of the amount of the required regulatory 
fee will be assessed on the first day following the deadline date for 
filing of these fees. Failure to pay your regulatory fees and/or any 
late penalty will subject you to additional provisions as set forth in 
the Debt Collection Improvement Act of 1996, as well as 47 CFR 1.1112.

IV. Procedural Matters

A. Comment Period and Procedures

    29. Pursuant to Secs. 1.415 and 1.419 of the Commission's rules, 47 
CFR 1.415, 1.419, interested parties may file comments on or before 
April 27, 2001, and reply comments on or before May 7, 2001. Comments 
may be filed using the Commission's Electronic Comment Filing System 
(ECFS) or by filing paper copies.\23\
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    \23\ Electronic Filing of Documents in Rulemaking Proceedings, 
63 FR 24121 (May 1, 1998).
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    30. Comments filed through the ECFS can be sent as an electronic 
file via the Internet to http://www.fcc.gov/e-file/ecfs.html>. 
Generally, only one copy of an electronic submission must be filed. 
However, if multiple docket or rulemaking numbers appear in the caption 
of this proceeding, commenters must transmit one electronic copy of the 
comments for each docket or rulemaking number referenced in the 
caption. In completing the transmittal screen, commenters should 
include their full name, Postal Service mailing address, and the 
applicable docket or rulemaking number. Parties may also submit an 
electronic comment by e-mail via the Internet. To receive filing 
instructions for e-mail comments, commenters should send an e-mail to 
[email protected], and should include the following words in the body of the 
message, ``get form your e-mail address.>'' A sample form and 
directions will be sent in reply.
    31. Parties who choose to file by paper must file an original and 
four copies of each filing. If more than one docket or rulemaking 
number appears in the caption of this proceeding, commenters must 
submit two additional copies for each additional docket or rulemaking 
number. All filings must be sent to the Commission's Secretary, Magalie 
Roman Salas, Office of the Secretary, Federal Communications 
Commission, 445 12th Street, SW., TW-A325, Washington, DC 20554.
    32. Parties who choose to file by paper should also submit their 
comments on diskette. These diskettes should be submitted to: Terry 
Johnson, Office of Managing Director, Federal Communications 
Commission, 445 12th Street, SW., 1-C807, Washington, DC 20554. Such a 
submission should be on a 3.5 inch diskette formatted in an IBM 
compatible format using Microsoft TM Word 97 for Windows or 
compatible software. The diskette should be accompanied by a cover 
letter and should be submitted in ``read only'' mode. The diskette 
should be clearly labeled with the commenter's name, proceeding 
(including the lead docket number in this case, MD Docket No. 01-76), 
type of pleading (comment or reply comment), date of submission, and 
the name of the electronic file on the diskette. The label should also 
include the following phrase ``Disk Copy--Not an Original.'' Each 
diskette should contain only one party's pleadings, preferably in a 
single electronic file. In addition, commenters must send diskette 
copies to the Commission's copy contractor, International Transcription 
Service, Inc., 1231 20th Street, NW., Washington, DC 20036.
    33. The public may view the documents filed in this proceeding 
during regular business hours in the FCC Reference Center, Federal 
Communications Commission, Room CY-A257, 445 12th Street, SW., 
Washington, DC 20554, and on the Commission's Internet Home Page 
http://www.fcc.gov.

B. Ex Parte Rules

    34. This is a permit-but-disclose 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.\24\
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    \24\ 47 CFR 1.1203 and 1.1206(a).
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C. Initial Regulatory Flexibility Analysis

    35. As required by the Regulatory Flexibility Act,\25\ the 
Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the possible impact on small entities of the proposals 
suggested in this document. The IRFA is set forth as Attachment 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, and must have a separate and distinct 
heading, designating the comments as responses to the IRFA. The 
Consumer Information Bureau, Reference Information Center, shall send a 
copy of this NPRM, including the IRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration, in accordance with the 
Regulatory Flexibility Act.
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    \25\ See 5 U.S.C. 603.
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D. Authority and Further Information

    36. Authority for this proceeding is contained in sections 4 (i) 
and (j), 8, 9, and 303(r) of the Communications Act of 1934, as 
amended.\26\ It is ordered that this NPRM is adopted. It is further 
ordered that the Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this NPRM, including the 
Initial Regulatory Flexibility Analysis, to the Chief Counsel for 
Advocacy of the Small Business Administration.
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    \26\ 47 U.S.C. 154(i)-(j), 159, & 303(r).
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    37. Further information about this proceeding may be obtained by 
contacting the Fees Hotline at (888) 225-5322.

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

Attachment A Initial Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\27\ the 
Commission

[[Page 19686]]

has prepared this Initial Regulatory Flexibility Analysis (IRFA) of the 
possible significant economic impact on small entities by the policies 
and rules proposed in the present Notice of Proposed Rulemaking, In the 
Matter of Assessment and Collection of Regulatory Fees for Fiscal Year 
2001. Written public comments are requested on this IRFA. Comments must 
be identified as responses to the IRFA and must be filed by the 
deadlines for comments on the IRFA provided in paragraph 32. The 
Commission will send a copy of the NPRM, including the IRFA, to the 
Chief Counsel for Advocacy of the Small Business Administration.\28\ In 
addition, the NPRM and IRFA (or summaries thereof) will be published in 
the Federal Register.\29\
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    \27\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601 et. seq., has been 
amended by the Contract With America Advancement Act of 1996, Public 
Law No. 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA 
is the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA).
    \28\ 5 U.S.C. 603(a).
    \29\ Id.
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I. Need for, and Objectives of, the Proposed Rules

    2. This rulemaking proceeding is initiated to obtain comments 
concerning the Commission's proposed amendment of its Schedule of 
Regulatory Fees. For Fiscal Year 2001, we intend to collect regulatory 
fees in the amount of $200,146,000, the amount that Congress has 
required the Commission to recover. The Commission seeks to collect the 
necessary amount through its proposed revised fees, as contained in the 
attached Schedule of Regulatory Fees, in the most efficient manner 
possible and without undue burden on the public.

II. Legal Basis

    3. This action, including publication of proposed rules, is 
authorized under sections (4) (i) and (j), 9, and 303(r) of the 
Communications Act of 1934, as amended.\30\
---------------------------------------------------------------------------

    \30\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
---------------------------------------------------------------------------

III. Description and Estimate of the Number of Small Entities to 
Which the Proposed Rules Will Apply

    4. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted.\31\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.''\32\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\33\ A small business concern is one 
which: (1) Is independently owned and operated; (2) is not dominant in 
its field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (SBA).\34\ A small 
organization is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its 
field.''\35\ Nationwide, as of 1992, there were approximately 275,801 
small organizations.\36\ ``Small governmental jurisdiction''\37\ 
generally means ``governments of cities, counties, towns, townships, 
villages, school districts, or special districts, with a population of 
less than 50,000.''\38\ As of 1992, there were approximately 85,006 
such jurisdictions in the United States.\39\ This number includes 
38,978 counties, cities, and towns; of these, 37,566, or 96 percent, 
have populations of fewer than 50,000.\40\ The Census Bureau estimates 
that this ratio is approximately accurate for all governmental 
entities. Thus, of the 85,006 governmental entities, we estimate that 
81,600 (96 percent) are small entities. Below, we further describe and 
estimate the number of small entity licensees and regulatees that may 
be affected by the proposed rules, if adopted.
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    \31\ 5 U.S.C. 603(b)(3).
    \32\ Id. 601(6).
    \33\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 15 U.S.C. 632). Pursuant to the 
RFA, the statutory definition of a small business applies ``unless 
an agency, after consultation with the Office of Advocacy of the 
Small Business Administration and after opportunity for public 
comment, establishes one or more definitions of such term which are 
appropriate to the activities of the agency and publishes such 
definition(s) in the Federal Register.'' 5 U.S.C. 601(3).
    \34\ Small Business Act, 15 U.S.C. 632 (1996).
    \35\ 5 U.S.C. 601(4).
    \36\ 1992 Economic Census, U.S. Bureau of the Census, Table 6 
(special tabulation of data under contract to Office of Advocacy of 
the U.S. Small Business Administration).
    \37\ 47 CFR 1.1162.
    \38\ 5 U.S.C. 601(5).
    \39\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census 
of Governments.''
    \40\ Id.
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Cable Services or Systems

    5. The SBA has developed a definition of small entities for cable 
and other pay television services, which includes all such companies 
generating $11 million or less in revenue annually.\41\ This definition 
includes cable systems operators, closed circuit television services, 
direct broadcast satellite services, multipoint distribution systems, 
satellite master antenna systems and subscription television services. 
According to the Census Bureau data from 1992, there were 1,788 total 
cable and other pay television services and 1,423 had less than $11 
million in revenue.\42\
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    \41\ 13 CFR 121.201, SIC code 4841.
    \42\ 1992 Economic Census Industry and Enterprise Receipts Size 
Report, Table 2D, SIC code 4841 (U.S. Bureau of the Census data 
under contract to the Office of Advocacy of the U.S. Small Business 
Administration).
---------------------------------------------------------------------------

    6. The Commission has developed its own definition of a small cable 
system operator for purposes of rate regulation. Under the Commission's 
rules, a ``small cable company'' is one serving fewer than 400,000 
subscribers nationwide.\43\ Based on our most recent information, we 
estimate that there were 1,439 cable operators that qualified as small 
cable system operators at the end of 1995.\44\ Since then, some of 
those companies may have grown to serve over 400,000 subscribers, and 
others may have been involved in transactions that caused them to be 
combined with other cable operators. Consequently, we estimate that 
there are fewer than 1,439 small entity cable system operators.
---------------------------------------------------------------------------

    \43\ 47 CFR 76.901(e). The Commission developed this definition 
based on its determination that a small cable system operator is one 
with annual revenues of $100 million or less. Implementation of 
Sections of the 1992 Cable Act: Rate Regulation, Sixth Report and 
Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393 (1995), 
60 FR 10534 (Feb. 27, 1995).
    \44\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 
1996 (based on figures for Dec. 30, 1995).
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    7. The Communications Act also contains a definition of a small 
cable system operator, which is ``a cable operator that, directly or 
through an affiliate, serves in the aggregate fewer than 1 percent of 
all subscribers in the United States and is not affiliated with any 
entity or entities whose gross annual revenues in the aggregate exceed 
$250,000,000.''\45\ The Commission has determined that there are 
67,700,000 subscribers in the United States.\46\ Therefore, we estimate 
that an operator serving fewer than 677,000 subscribers shall be deemed 
a small operator, if its annual revenues, when combined with the total 
annual revenues of all of its affiliates, do not exceed $250 million in 
the aggregate.\47\ Based on available data, we estimate that the number 
of cable operators serving 677,000 subscribers or less totals 
1,450.\48\ We do not request nor do we collect information concerning 
whether cable system operators are affiliated with entities

[[Page 19687]]

whose gross annual revenues exceed $250,000,000,\49\ and thus are 
unable at this time to estimate with greater precision the number of 
cable system operators that would qualify as small cable operators 
under the definition in the Communications Act.
---------------------------------------------------------------------------

    \45\ 47 U.S.C. 543(m)(2).
    \46\ Annual Assessment of the Status on Competition in the 
Market for the Delivery of Video Programming, CS Docket No. 00-132, 
Seventh Annual Report, FCC 01-1 (released January 8, 2001), Table C-
1.
    \47\ Id. 76.1403(b).
    \48\ FCC Announces New Subscriber Count for the Definition of 
Small Cable Operator, Public Notice, DA-01-0158 (released January 
24, 2001)
    \49\ We do receive such information on a case-by-case basis only 
if a cable operator appeals a local franchise authority's finding 
that the operator does not qualify as a small cable operator 
pursuant to Sec. 76.1403(b) of the Commission's rules. See 47 CFR 
76.1403(d).
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    8. Other Pay Services. Other pay television services are also 
classified under Standard Industrial Classification (SIC) 4841, which 
includes cable systems operators, closed circuit television services, 
direct broadcast satellite services (DBS),\50\ multipoint distribution 
systems (MDS),\51\ satellite master antenna systems (SMATV), and 
subscription television services.
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    \50\ Direct Broadcast Services (DBS) are discussed with the 
international services, infra.
    \51\ Multipoint Distribution Services (MDS) are discussed with 
the mass media services, infra.
---------------------------------------------------------------------------

Common Carrier Services and Related Entities

    9. The most reliable source of information regarding the total 
numbers of certain common carrier and related providers nationwide 
appears to be data the Commission publishes annually in its Carrier 
Locator report, derived from filings made in connection with the 
Telecommunications Relay Service (TRS).\52\ According to data in the 
most recent report, there are 4,822 interstate service providers.\53\ 
These providers include, inter alia, local exchange carriers, wireline 
carriers and service providers, interexchange carriers, competitive 
access providers, operator service providers, pay telephone operators, 
providers of telephone service, providers of telephone exchange 
service, and resellers.
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    \52\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Carrier Locator: Interstate Service Providers, Figure 1 (October 
2000) (Carrier Locator). See also 47 CFR 64.601 et seq.
    \53\ FCC, Carrier Locator at Figure 1.
---------------------------------------------------------------------------

    10. We have included small incumbent local exchange carriers (LECs) 
\54\ in this present RFA analysis. As noted above, a ``small business'' 
under the RFA is one that, inter alia, meets the pertinent small 
business size standard (e.g., a telephone communications business 
having 1,500 or fewer employees), and ``is not dominant in its field of 
operation.''\55\ The SBA's Office of Advocacy contends that, for RFA 
purposes, small incumbent LECs are not dominant in their field of 
operation because any such dominance is not ``national'' in scope.\56\ 
We have therefore included small incumbent LECs in this RFA analysis, 
although we emphasize that this RFA action has no effect on FCC 
analyses and determinations in other, non-RFA contexts.
---------------------------------------------------------------------------

    \54\ See 47 U.S.C. 251 (h) (defining ``incumbent local exchange 
carrier'').
    \55\ U.S.C. 601(3).
    \56\ Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small 
Business Act contains a definition of ``small business concern,'' 
which the RFA incorporates into its own definition of ``small 
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 
601(3) (RFA). SBA regulations interpret ``small business concern'' 
to include the concept of dominance on a national basis. 13 CFR 
121.102(b). Since 1996, out of an abundance of caution, the 
Commission has included small incumbent LECs in its regulatory 
flexibility analyses. See, e.g., Implementation of the Local 
Competition Provisions of the Telecommunications Act of 1996, CC 
Docket, 96-98, First Report and Order, 11 FCC Rcd 15499, 16144-45 
(1996), 61 FR 45476 (Aug. 29, 1996).
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    11. Total Number of Telephone Companies Affected. The U.S. Bureau 
of the Census (``Census Bureau'') reports that, at the end of 1992, 
there were 3,497 firms engaged in providing telephone services, as 
defined therein, for at least one year.\57\ This number contains a 
variety of different categories of carriers, including local exchange 
carriers, interexchange carriers, competitive access providers, 
operator service providers, pay telephone operators, and resellers. It 
seems certain that some of these 3,497 telephone service firms may not 
qualify as small entities or small incumbent local exchange carriers 
(ILECs) because they are not ``independently owned and operated.''\58\ 
It seems reasonable to conclude that fewer than 3,497 telephone service 
firms are small entity telephone service firms or small ILECs that may 
be affected by the proposed rules, if adopted.
---------------------------------------------------------------------------

    \57\ U.S. Department of Commerce, Bureau of the Census, 1992 
Census of Transportation, Communications, and Utilities: 
Establishment and Firm Size, at Firm Size 1-123 (1995) (1992 
Census).
    \58\ See generally 15 U.S.C. 632(a)(1).
---------------------------------------------------------------------------

    12. Wireline Carriers and Service Providers. The SBA has developed 
a definition of small entities for telephone communications companies 
other than radiotelephone (wireless) companies. The Census Bureau 
reports that there were 2,321 such telephone companies in operation for 
at least one year at the end of 1992.\59\ According to the SBA's 
definition, a small business telephone company other than a 
radiotelephone company is one employing no more than 1,500 persons.\60\ 
All but 26 of the 2,321 non-radiotelephone companies listed by the 
Census Bureau were reported to have fewer than 1,000 employees. Even if 
all 26 of those companies had more than 1,500 employees, there would 
still be 2,295 non-radiotelephone companies that might qualify as small 
entities or small ILECs. Although it seems certain that some of these 
carriers are not independently owned and operated, we are unable at 
this time to estimate with greater precision the number of wireline 
carriers and service providers that would qualify as small business 
concerns under SBA's definition. Therefore, we estimate that fewer than 
2,295 small telephone communications companies other than 
radiotelephone companies are small entities or small ILECs that may be 
affected by the proposed rules, if adopted.
---------------------------------------------------------------------------

    \59\ 1992 Census, supra, at Firm Size 1-123.
    \60\ 13 CFR 121.201, SIC code 4813.
---------------------------------------------------------------------------

    13. Local Exchange Carriers, Competitive Access Providers, 
Interexchange Carriers, Operator Service Providers, Payphone Providers, 
and Resellers. Neither the Commission nor the SBA has developed a 
definition for small LECs, competitive access providers (CAPS), 
interexchange carriers (IXCs), operator service providers (OSPs), 
payphone providers, or resellers. The closest applicable definition for 
these carrier-types under SBA rules is for telephone communications 
companies other than radiotelephone (wireless) companies.\61\ The most 
reliable source of information that we know regarding the number of 
these carriers nationwide appears to be the data that we collect 
annually in connection with the Telecommunications Relay Service.\62\ 
According to our most recent data, there are 1,395 LECs, 349 CAPs, 204 
IXCs, 21 OSPs, 758 payphone providers, and 541 resellers.\63\ Although 
it seems certain that some of these carriers are not independently 
owned and operated, or have more than 1,500 employees, we are unable at 
this time to estimate with greater precision the number of these 
carriers that would qualify as small business concerns under the SBA's 
definition. Therefore, we estimate that there are fewer than 1,395 
small entity LECs or small incumbent LECs, 349 CAPs, 204 IXCs, 21 OSPs, 
758 payphone providers, and 541 resellers that may be affected by the 
proposed rules, if adopted.
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    \61\ 13 CFR 121.210, SIC Code 4813.
    \62\ See 47 CFR 64.601 et seq.; Carrier Locator at Figure 1.
    \63\ Carrier Locator at Figure 1. The total for resellers 
includes both toll resellers and local resellers.
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International Services

    14. The Commission has not developed a definition of small entities 
applicable to licensees in the international services. Therefore, the

[[Page 19688]]

applicable definition of small entity is generally the definition under 
the SBA rules applicable to Communications Services, Not Elsewhere 
Classified (NEC).\64\ This definition provides that a small entity is 
expressed as one with $11.0 million or less in annual receipts.\65\ 
According to the Census Bureau, there were a total of 848 
communications services providers, NEC, in operation in 1992, and a 
total of 775 had annual receipts of less than $9.999 million.\66\ The 
Census report does not provide more precise data.
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    \64\ An exception is the Direct Broadcast Satellite (DBS) 
Service, infra.
    \65\ 13 CFR 120.121, SIC code 4899.
    \66\ 1992 Economic Census Industry and Enterprise Receipts Size 
Report, Table 2D, SIC code 4899 (U.S. Bureau of the Census data 
under contract to the Office of Advocacy of the U.S. Small Business 
Administration).
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    15. International Broadcast Stations. Commission records show that 
there are 17 international high frequency broadcast station 
authorizations. We do not request nor collect annual revenue 
information, and are unable to estimate the number of international 
high frequency broadcast stations that would constitute a small 
business under the SBA definition. However, the Commission estimates 
that only five international high frequency broadcast stations are 
subject to regulatory fee payments.
    16. International Public Fixed Radio (Public and Control Stations). 
There is one licensee in this service subject to payment of regulatory 
fees, and the licensee does not constitute a small business under the 
SBA definition.
    17. Fixed Satellite Transmit/Receive Earth Stations. There are 
approximately 2,784 earth station authorizations, a portion of which 
are Fixed Satellite Transmit/Receive Earth Stations. We do not request 
nor collect annual revenue information, and are unable to estimate the 
number of the earth stations that would constitute a small business 
under the SBA definition.
    18. Fixed Satellite Small Transmit/Receive Earth Stations. There 
are approximately 2,784 earth station authorizations, a portion of 
which are Fixed Satellite Small Transmit/Receive Earth Stations. We do 
not request nor collect annual revenue information, and are unable to 
estimate the number of fixed satellite transmit/receive earth stations 
that would constitute a small business under the SBA definition.
    19. Fixed Satellite Very Small Aperture Terminal (VSAT) Systems. 
These stations operate on a primary basis, and frequency coordination 
with terrestrial microwave systems is not required. Thus, a single 
``blanket'' application may be filed for a specified number of small 
antennas and one or more hub stations. There are 492 current VSAT 
System authorizations. We do not request nor collect annual revenue 
information, and are unable to estimate the number of VSAT systems that 
would constitute a small business under the SBA definition.
    20. Mobile Satellite Earth Stations. There are 15 licensees. We do 
not request nor collect annual revenue information, and are unable to 
estimate the number of mobile satellite earth stations that would 
constitute a small business under the SBA definition.
    21. Radio Determination Satellite Earth Stations. There are four 
licensees. We do not request nor collect annual revenue information, 
and are unable to estimate the number of radio determination satellite 
earth stations that would constitute a small business under the SBA 
definition.
    22. Space Stations (Geostationary). There are presently 66 
Geostationary Space Station authorizations. We do not request nor 
collect annual revenue information, and are unable to estimate the 
number of geostationary space stations that would constitute a small 
business under the SBA definition.
    23. Space Stations (Non-Geostationary). There are presently six 
Non-Geostationary Space Station authorizations, of which only three 
systems are operational. We do not request nor collect annual revenue 
information, and are unable to estimate the number of non-geostationary 
space stations that would constitute a small business under the SBA 
definition.
    24. Direct Broadcast Satellites. Because DBS provides subscription 
services, DBS falls within the SBA-recognized definition of ``Cable and 
Other Pay Television Services.'' \67\ This definition provides that a 
small entity is one with $11.0 million or less in annual receipts.\68\ 
Currently, there are nine DBS authorizations, though there are only two 
DBS companies in operation at this time. We do not request nor collect 
annual revenue information for DBS services, and are unable to 
determine the number of DBS operators that would constitute a small 
business under the SBA definition.
---------------------------------------------------------------------------

    \67\ 13 CFR 120.121, SIC code 4841.
    \68\ 13 CFR 121.201, SIC code 4841.
---------------------------------------------------------------------------

Mass Media Services

    25. Commercial Radio and Television Services. The proposed rules 
and policies will apply to television broadcasting licensees and radio 
broadcasting licensees.\69\ The SBA defines a television broadcasting 
station that has $10.5 million or less in annual receipts as a small 
business.\70\ Television broadcasting stations consist of 
establishments primarily engaged in broadcasting visual programs by 
television to the public, except cable and other pay television 
services.\71\ Included in this industry are commercial, religious, 
educational, and other television stations.\72\ Also included are 
establishments primarily engaged in television broadcasting and which 
produce taped television program materials.\73\ Separate establishments 
primarily engaged in producing taped television program materials are 
classified under another SIC number.\74\ There were 1,509 television 
stations operating in the nation in 1992.\75\ That number has remained 
fairly constant as indicated by the approximately 1,663 operating 
television broadcasting stations in the nation as of September 30, 
2000.\76\ For 1992,\77\ the number of

[[Page 19689]]

television stations that produced less than $10.0 million in revenue 
was 1,155 establishments.\78\ Only commercial stations are subject to 
regulatory fees.
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    \69\ While we tentatively believe that the SBA's definition of 
``small business'' greatly overstates the number of radio and 
television broadcast stations that are small businesses and is not 
suitable for purposes of determining the impact of the proposals on 
small television and radio stations, for purposes of this NPRM we 
utilize the SBA's definition in determining the number of small 
businesses to which the proposed rules would apply. We reserve the 
right to adopt, in the future, a more suitable definition of ``small 
business'' as applied to radio and television broadcast stations or 
other entities subject to the proposed rules in this NPRM, and to 
consider further the issue of the number of small entities that are 
radio and television broadcasters or other small media entities. See 
Report and Order in MM Docket No. 93-48 (Children's Television 
Programming), 11 FCC Rcd 10660, 10737-38 (1996), 61 FR 43981 (Aug. 
27, 1996), citing 5 U.S.C. 601(3).
    \70\ 13 CFR 121.201, SIC code 4833.
    \71\ Economics and Statistics Administration, Bureau of Census, 
U.S. Department of Commerce, 1992 Census of Transportation, 
Communications and Utilities, Establishment and Firm Size, Series 
UC92-S-1, Appendix A-9 (1995) (1992 Census, Series UC92-S-1).
    \72\ Id.; see Executive Office of the President, Office of 
Management and Budget, Standard Industrial Classification Manual 
(1987), at 283, which describes ``Television Broadcasting Stations'' 
(SIC code 4833) as: ``Establishments primarily engaged in 
broadcasting visual programs by television to the public, except 
cable and other pay television services. Included in this industry 
are commercial, religious, educational and other television 
stations. Also included here are establishments primarily engaged in 
television broadcasting and which produce taped television program 
materials.''
    \73\ 1992 Census, Series UC92-S-1, at Appendix A-9.
    \74\ Id., SIC code 7812 (Motion Picture and Video Tape 
Production); SIC code 7922 (Theatrical Producers and Miscellaneous 
Theatrical Services) (producers of live radio and television 
programs).
    \75\ FCC News Release No. 31327 (Jan. 13, 1993); 1992 Census, 
Series UC92-S-1, at Appendix A-9.
    \76\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2000.''
    \77\ A census to determine the estimated number of 
Communications establishments is performed every five years, in 
years ending with a ``2'' or ``7.'' See 1992 Census, Series UC92-S-
1, at III.
    \78\ The amount of $10 million was used to estimate the number 
of small business establishments because the relevant Census 
categories stopped at $9,999,999 and began at $10,000,000. No 
category for $10.5 million existed. Thus, the number is as accurate 
as it is possible to calculate with the available information.
---------------------------------------------------------------------------

    26. Additionally, the Small Business Administration defines a radio 
broadcasting station that has $5 million or less in annual receipts as 
a small business.\79\ A radio broadcasting station is an establishment 
primarily engaged in broadcasting aural programs by radio to the 
public.\80\ Included in this industry are commercial, religious, 
educational, and other radio stations.\81\ Radio broadcasting stations, 
which primarily are engaged in radio broadcasting and which produce 
radio program materials, are similarly included.\82\ However, radio 
stations which are separate establishments and are primarily engaged in 
producing radio program material are classified under another SIC 
number.\83\ The 1992 Census indicates that 96 percent (5,861 of 6,127) 
of radio station establishments produced less than $5 million in 
revenue in 1992.\84\ Official Commission records indicate that 11,334 
individual radio stations were operating in 1992.\85\ As of September 
30, 2000, Commission records indicate that 12,717 radio stations were 
operating, of which 8,032 were FM stations.\86\ Only commercial 
stations are subject to regulatory fees.
---------------------------------------------------------------------------

    \79\ 13 CFR 121.201, SIC code 4832.
    \80\ 1992 Census, Series UC92-S-1, at Appendix A-9.
    \81\ Id.
    \82\ Id.
    \83\ Id.
    \84\ The Census Bureau counts radio stations located at the same 
facility as one establishment. Therefore, each co-located AM/FM 
combination counts as one establishment.
    \85\ FCC News Release, No. 31327 (Jan. 13, 1993).
    \86\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2000.''
---------------------------------------------------------------------------

    27. The rules may affect approximately 1,663 television stations, 
approximately 1,281 of which are considered small businesses.\87\ The 
proposed rules will affect some 12,717 radio stations, approximately 
12,209 of which are small businesses.\88\ These estimates may overstate 
the number of small entities because the revenue figures on which they 
are based do not include or aggregate revenues from non-television or 
non-radio affiliated companies. There are also 2,366 low power 
television stations (LPTV).\89\ Given the nature of this service, we 
will presume that all LPTV licensees qualify as small entities under 
the SBA definition.
---------------------------------------------------------------------------

    \87\ We use the 77 percent figure of TV stations operating at 
less than $10 million for 1992 and apply it to the 2000 total of 
1,663 TV stations to arrive at 1,281 stations categorized as small 
businesses.
    \88\ We use the 96% figure of radio station establishments with 
less than $5 million revenue from data presented in the year 2000 
estimate (FCC News Release, September 30, 2000) and apply it to the 
12,717 individual station count to arrive at 12,209 individual 
stations as small businesses.
    \89\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2000.''
---------------------------------------------------------------------------

Auxiliary, Special Broadcast and other program distribution services

    28. This service involves a variety of transmitters, generally used 
to relay broadcast programming to the public (through translator and 
booster stations) or within the program distribution chain (from a 
remote news gathering unit back to the station). The Commission has not 
developed a definition of small entities applicable to broadcast 
auxiliary licensees. The applicable definitions of small entities are 
those, noted previously, under the SBA rules applicable to radio 
broadcasting stations and television broadcasting stations.\90\
---------------------------------------------------------------------------

    \90\ 13 CFR 121.201, SIC code 4832.
---------------------------------------------------------------------------

    29. The Commission estimates that there are approximately 2,700 
translators and boosters. The FCC does not collect financial 
information on any broadcast facility, and the Department of Commerce 
does not collect financial information on these auxiliary broadcast 
facilities. We believe that most, if not all, of these auxiliary 
facilities could be classified as small businesses by themselves. We 
also recognize that most commercial translators and boosters are owned 
by a parent station which, in some cases, would be covered by the 
revenue definition of small business entity discussed above. These 
stations would likely have annual revenues that exceed the SBA maximum 
to be designated as a small business (either $5 million for a radio 
station or $10.5 million for a TV station). Furthermore, they do not 
meet the Small Business Act's definition of a ``small business 
concern'' because they are not independently owned and operated.\91\
---------------------------------------------------------------------------

    \91\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    30. Multipoint Distribution Service (MDS). This service involves a 
variety of transmitters, which are used to relay programming to the 
home or office, similar to that provided by cable television systems. 
\92\ In connection with the 1996 MDS auction, the Commission defined 
small businesses as entities that had annual average gross revenues for 
the three preceding years not in excess of $40 million. \93\ This 
definition of a small entity in the context of MDS auctions has been 
approved by the SBA. \94\ These stations were licensed prior to 
implementation of Section 309(j) of the Communications Act of 1934, as 
amended. \95\ Licenses for new MDS facilities are now awarded to 
auction winners in Basic Trading Areas (BTAs) and BTA-like areas. \96\ 
The MDS auctions resulted in 67 successful bidders obtaining licensing 
opportunities for 493 BTAs. Of the 67 auction winners, 61 meet the 
definition of a small business. There are approximately 2,000 MDS/MMDS/
LMDS stations currently licensed. We conclude that there are 1,595 MDS/
MMDS/LMDS providers that are small businesses as deemed by the SBA and 
the Commission's auction rules.
---------------------------------------------------------------------------

    \92\ For purposes of this item, MDS includes both the single 
channel Multipoint Distribution Service (MDS) and Multichannel 
Multipoint Distribution Service (MMDS).
    \93\ 47 CFR 1.2110(a)(1.
    \94\ Amendment of Parts 21 and 74 of the Commission's Rules with 
Regard to Filing Procedures in the Multipoint Distribution Service 
and in the Instructional Television Fixed Service and Implementation 
of Section 309(j) of the Communications Act--Competitive Bidding, 10 
FCC Rcd 9589 (1995), 60 FR 36524 (Jul. 17, 1995).
    \95\ 47 U.S.C. 309(j).
    \96\ Id. A Basic Trading Area (BTA) is the geographic area by 
which the Multipoint Distribution Service is licensed. See Rand 
McNally 1992 Commercial Atlas and Marketing Guide, 123rd Edition, 
pages 36-39.
---------------------------------------------------------------------------

Wireless and Commercial Mobile Services

    31. Cellular Licensees. Neither the Commission nor the SBA has 
developed a definition of small entities applicable to cellular 
licensees. The applicable definition of small entity is the definition 
under the SBA rules applicable to radiotelephone (wireless) companies. 
This provides that a small entity is a radiotelephone company employing 
no more than 1,500 persons. \97\ According to the Bureau of the Census, 
only twelve radiotelephone firms from a total of 1,178 such firms which 
operated during 1992 had 1,000 or more employees. \98\ Even if all 
twelve of these firms were cellular telephone companies, nearly all 
cellular carriers were small businesses under the SBA's definition. In 
addition, we note that there are 1,758 cellular licenses; however, a 
cellular licensee may own several licenses. According to the most 
recent Telecommunications Industry Revenue data, 808 carriers reported 
that they were engaged in the provision of either cellular service or 
Personal Communications Service (PCS) services,

[[Page 19690]]

which are placed together in the data. \99\ We do not have data 
specifying the number of these carriers that are not independently 
owned and operated or have more than 1,500 employees, and are unable at 
this time to estimate with greater precision the number of cellular 
service carriers that would qualify as small business concerns under 
the SBA's definition. We estimate that there are fewer than 808 small 
cellular service carriers that may be affected by the proposed rules, 
if adopted.
---------------------------------------------------------------------------

    \97\ 13 CFR 121.201, SIC code 4812.
    \98\ 1992 Census, Series UC92-S-1, at Table 5, SIC code 4812.
    \99\ Trends in Telephone Service, Table 19.3 (March 2000).
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    32. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. Phase I licensing was conducted 
by lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized 
to operate in the 220 MHz band. The Commission has not developed a 
definition of small entities specifically applicable to such incumbent 
220 MHz Phase I licensees. To estimate the number of such licensees 
that are small businesses, we apply the definition under the SBA rules 
applicable to Radiotelephone Communications companies. This definition 
provides that a small entity is a radiotelephone company employing no 
more than 1,500 persons. \100\ According to the Bureau of the Census, 
only 12 radiotelephone firms out of a total of 1,178 such firms which 
operated during 1992 had 1,000 or more employees. \101\ If this general 
ratio continues in 1999 in the context of Phase I 220 MHz licensees, we 
estimate that nearly all such licensees are small businesses under the 
SBA's definition.
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    \100\ 13 CFR 121.201, Standard Industrial Classification (SIC) 
code 4812.
    \101\ U.S. Bureau of the Census, U.S. Department of Commerce, 
1992 Census of Transportation, Communications, and Utilities, UC92-
S-1, Subject Series, Establishment and Firm Size, Table 5, 
Employment Size of Firms; 1992, SIC code 4812 (issued May 1995).
---------------------------------------------------------------------------

    33. 220 MHz Radio Service--Phase II Licensees. The Phase II 220 MHz 
service is a new service, and is subject to spectrum auctions. In the 
220 MHz Third Report and Order, we adopted criteria for defining small 
and very small businesses for purposes of determining their eligibility 
for special provisions such as bidding credits and installment 
payments. \102\ We have defined a small business as an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues not exceeding $15 million for the preceding three years. 
A very small business is defined as an entity that, together with its 
affiliates and controlling principals, has average gross revenues that 
are not more than $3 million for the preceding three years. \103\ The 
SBA has approved these definitions. \104\ An auction of Phase II 
licenses commenced on September 15, 1998, and closed on October 22, 
1998. \105\ Two auctions of Phase II licenses have been conducted. In 
the first auction, nine hundred and eight (908) licenses were auctioned 
in 3 different-sized geographic areas: three nationwide licenses, 30 
Regional Economic Area Group Licenses, and 875 Economic Area (EA) 
Licenses. Of the 908 licenses auctioned, 693 were sold. Companies 
claiming small business status won: One of the Nationwide licenses, 67% 
of the Regional licenses, and 54% of the EA licenses. The second 
auction included 225 licenses: 216 EA licenses and 9 EAG licenses. 
Fourteen companies claiming small business status won 158 licenses. 
\106\
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    \102\ 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-
70, at paragraphs 291-295 (1997).
    \103\ 220 MHz Third Report and Order, 12 FCC Rcd at 11068-69, 
paragraph 291.
    \104\ See Letter from A. Alvarez, Administrator, SBA, to D. 
Phythyon, Chief, Wireless Telecommunications Bureau, FCC (Jan. 6, 
1998).
    \105\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Report No. WT98-36 (Wireless Telecommunications Bureau, 
October 23, 1998).
    \106\ Public Notice, ``FCC Announces It is Prepared to Grant 654 
Phase II 220 MHz Licenses After Final Payment is Made,'' Report No. 
AUC-18-H, DA No. 99-229 (Wireless Telecom. Bur. Jan. 22, 1999).
---------------------------------------------------------------------------

    34. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order, 
we adopted criteria for defining small businesses and very small 
businesses for purposes of determining their eligibility for special 
provisions such as bidding credits and installment payments. \107\ We 
have defined a small business as an entity that, together with its 
affiliates and controlling principals, has average gross revenues not 
exceeding $15 million for the preceding three years. Additionally, a 
very small business is defined as an entity that, together with its 
affiliates and controlling principals, has average gross revenues that 
are not more than $3 million for the preceding three years. An auction 
of 52 Major Economic Area (MEA) licenses commenced on September 6, 
2000, and closed on September 21, 2000. \108\ Of the 104 licenses 
auctioned, 96 licenses were sold to 9 bidders. Five of these bidders 
were small businesses that won a total of 26 licenses.
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    \107\ See Service Rules for the 746-764 MHz Bands, and Revisions 
to Part 27 of the Commission's Rules, WT Docket No. 99-168, Second 
Report and Order, 65 FR 17599 (April 4, 2000).
    \108\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Report No. WT 98-36 (Wireless Telecommunications Bureau, 
October 23, 1998).
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    35. Private and Common Carrier Paging. In the Paging Third Report 
and Order, we adopted criteria for defining small businesses and very 
small businesses for purposes of determining their eligibility for 
special provisions such as bidding credits and installment payments. 
\109\ We have defined a small business as an entity that, together with 
its affiliates and controlling principals, has average gross revenues 
not exceeding $15 million for the preceding three years. Additionally, 
a very small business is defined as an entity that, together with its 
affiliates and controlling principals, has average gross revenues that 
are not more than $3 million for the preceding three years. \110\ The 
SBA has approved these definitions. \111\ An auction of Metropolitan 
Economic Area (MEA) licenses commenced on February 24, 2000, and closed 
on March 2, 2000. \112\ Of the 985 licenses auctioned, 440 were sold. 
Fifty-seven companies claiming small business status won. At present, 
there are approximately 24,000 Private-Paging site-specific licenses 
and 74,000 Common Carrier Paging licenses. According to the most recent 
Telecommunications Industry Revenue data, 172 carriers reported that 
they were engaged in the provision of either paging or ``other mobile'' 
services, which are placed together in the data. \113\ We do not have 
data specifying the number of these carriers that are not independently 
owned and operated or have more than 1,500 employees, and therefore are 
unable at this time to estimate with greater precision the number of 
paging carriers that would qualify as small business concerns under the 
SBA's definition. Consequently, we estimate that there are fewer than 
172 small paging carriers that may be affected by these proposals and 
policies, if adopted. We estimate that the majority of private and 
common carrier paging providers would qualify as small entities under 
the SBA definition.
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    \109\ 220 MHz Third Report and Order, 62 FR 16004 (April 3, 
1997), at paragraphs 291-295.
    \110\ 220 MHz Third Report and Order, 62 FR 16004 (April 3, 
1997), at paragraph 291.
    \111\ See Letter from A. Alvarez, Administrator, SBA, to D. 
Phythyon, Chief, Wireless Telecommunications Bureau, FCC (January 6, 
1998).
    \112\ See generally Public Notice, ``220 MHz Service Auction 
Closes, '' Report No. WT 98-36 (Wireless Telecommunications Bureau 
(October 23, 1998).
    \113\ Trends in Telephone Service, Table 19.3 (February 19, 
1999).
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    36. Broadband Personal Communications Service (PCS). The broadband 
PCS spectrum is divided into six frequency designated A through F, and 
the Commission has held auctions for each block. The Commission defined 
``small entity'' for Blocks C and F as an

[[Page 19691]]

entity that has average gross revenues of less than $40 million in the 
three previous calendar years. \114\ For Block F, an additional 
classification for ``very small business'' was added and is defined as 
an entity that, together with their affiliates, has average gross 
revenues of not more than $15 million for the preceding three calendar 
years. \115\ These regulations defining ``small entity'' in the context 
of broadband PCS auctions have been approved by the SBA. \116\ No small 
businesses within the SBA-approved definition bid successfully for 
licenses in Blocks A and B. There were 90 winning bidders that 
qualified as small entities in the Block C auctions. A total of 93 
small and very small business bidders won approximately 40% of the 
1,479 licenses for Blocks D, E, and F. \117\ On March 23, 1999, the 
Commission re-auctioned 347 C, D, E, and F Block licenses; there were 
48 small business winning bidders. Based on this information, we 
conclude that the number of small broadband PCS licensees will include 
the 90 winning C Block bidders and the 93 qualifying bidders in the D, 
E, and F blocks, plus the 48 winning bidders in the re-auction, for a 
total of 231 small entity PCS providers as defined by the SBA and the 
Commission's auction rules. On January 26, 2001, the Commission 
completed the auction of 422 C and F Broadband PCS licenses in Auction 
No. 35. Of the 35 winning bidders in this auction, 29 qualified as 
small or very small businesses.
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    \114\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket 
No. 96-59 Sections 57-60 (released June 24, 1996), 61 FR 33859 (July 
1, 1996); see also 47 CFR Section 24.720(b).
    \115\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket 
No. 96-59 Sections 60 (released June 24, 1996), 61 FR 33859 (July 1, 
1996).
    \116\ See, e.g., Implementation of Section 309(j) of the 
Communications Act--Competitive Bidding, PP Docket No. 93-253, Fifth 
Report and Order, 9 FCC Rcd 5532, 5581-84 (1994).
    \117\ FCC News, Broadband PCS, D, E and F Block Auction Closes, 
No. 71744 (released January 14, 1997).
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    37. Narrowband PCS. To date, two auctions of narrowband PCs 
licenses have been conducted. Through these auctions, the Commission 
has awarded a total of 41 licenses, out of which 11 were obtained by 
small businesses. For purposes of the two auctions that have already 
been held, small businesses were defined as entities with average gross 
revenues for the prior three calendar years of $40 million or less. To 
ensure meaningful participation of small business entities in the 
auctions, the Commission adopted a two-tiered definition of small 
businesses in the Narrowband PCS Second Report and Order.\118\ A small 
business is an entity that, together with affiliates and controlling 
interests, has average gross revenues for the three preceding years of 
not more than $40 million. A very small business is an entity that, 
together with affiliates and controlling interests, has average gross 
revenues for the three preceding years of not more than $15 million. 
These definitions have been approved by the SBA. In the future, the 
Commission will auction 459 licenses to serve MTAs and 408 response 
channel licenses. There is also one megahertz of narrowband PCS 
spectrum that has been held in reserve and that the Commission has not 
yet decided to release for licensing. The Commission cannot predict 
accurately the number of licenses that will be awarded to small 
entities in future auctions. However, four of the 16 winning bidders in 
the two previous narrowband PCS auctions were small businesses, as that 
term was defined under the Commission's Rules. The Commission assumes, 
for purposes of this IRFA, that a large portion of the remaining 
narrowband PCS licenses will be awarded to small entities. The 
Commission also assumes that at least some small businesses will 
acquire narrowband PCS licenses by means of the Commission's 
partitioning and disaggregation rules.
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    \118\ In the Matter of Amendment of the Commission's Rules to 
Establish New Personal Communications Services, Narrowband PCS, 
Docket No. ET 92-100, Docket No. PP 93-253, Second Report and Order 
and Second Further Notice of Proposed Rulemaking, 65 FR 35875 (June 
6, 2000).
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    38. Rural Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Rural Radiotelephone 
Service.\119\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio Systems (BETRS).\120\ We will use 
the SBA's definition applicable to radiotelephone companies, i.e., an 
entity employing no more than 1,500 persons.\121\ There are 
approximately 1,000 licensees in the Rural Radiotelephone Service, and 
we estimate that almost all of them qualify as small entities under the 
SBA's definition.
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    \119\ The service is defined in Sec. 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \120\ BETRS is defined in Secs. 22.757 and 22.759 of the 
Commission's Rules, 47 CFR 22.757 and 22.759.
    \121\ 13 CFR 121.201, SIC code 4812.
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    39. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service.\122\ We will use the SBA's definition 
applicable to radiotelephone companies, i.e., an entity employing no 
more than 1,500 persons.\123\ There are approximately 100 licensees in 
the Air-Ground Radiotelephone Service, and we estimate that almost all 
of them qualify as small under the SBA definition.
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    \122\ The service is defined in Sec. 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \123\ 13 CFR 121.201, SIC code 4812.
---------------------------------------------------------------------------

    40. Specialized Mobile Radio (SMR). Pursuant to 47 CFR 
90.814(b)(1), the Commission has defined ``small business'' for 
purposes of auctioning 900 MHz SMR licenses, 800 MHz SMR licenses for 
the upper 200 channels, and 800 MHz SMR licenses for the lower 230 
channels on the 800 MHz band, as a firm that has had average annual 
gross revenues of $15 million or less in the three preceding calendar 
years.\124\ The SBA has approved this small business size standard for 
the 800 MHz and 900 MHz auctions. Sixty winning bidders for geographic 
area licenses in the 900 MHz SMR band qualified as small business under 
the $15 million size standard. The auction of the 525 800 MHz SMR 
geographic area licenses for the upper 200 channels began on October 
28, 1997, and was completed on December 8, 1997. Ten winning bidders 
for geographic area licenses for the upper 200 channels in the 800 MHz 
SMR band qualified as small businesses under the $15 million size 
standard. An auction of 800 MHz SMR geographic area licenses for the 
General Category channels began on August 16, 2000 and was completed on 
September 1, 2000. Of the 1,050 licenses offered in that auction, 1,030 
licenses were sold. Eleven winning bidders for licenses for the General 
Category channels in the 800 MHz SMR band qualified as small business 
under the $15 million size standard. In an auction completed on 
December 5, 2000, a total of 2,800 EA licenses in the lower 80 channels 
of the 800 MHz SMR service were sold. Of the 22 winning bidders, 19 
claimed small business status. In addition, there are numerous 
incumbent site-by-site SMR licenses on the 800 and 900 MHz band.
---------------------------------------------------------------------------

    \124\ 47 CFR 90.814(b)(1).
---------------------------------------------------------------------------

    41. The proposed fees in the NPRM apply to SMR providers in the 800 
MHz and 900 MHz bands that either hold geographic area licenses or have 
obtained extended implementation authorizations. We do not know how 
many firms provide 800 MHz or 900 MHz geographic area SMR service 
pursuant to extended implementation authorizations, nor how many of 
these

[[Page 19692]]

providers have annual revenues of no more than $15 million. One firm 
has over $15 million in revenues. We assume, for purposes of this IRFA, 
that all of the remaining existing extended implementation 
authorizations are held by small entities, as that term is defined by 
the SBA.
    42. For geographic area licenses in the 900 MHz SMR band, there are 
60 who qualified as small entities. For the 800 MHz SMR's, 38 are small 
or very small entities.
    43. Private Land Mobile Radio (PLMR). PLMR systems serve an 
essential role in a range of industrial, business, land transportation, 
and public safety activities. These radios are used by companies of all 
sizes operating in all U.S. business categories. The Commission has not 
developed a definition of small entity specifically applicable to PLMR 
licensees due to the vast array of PLMR users. For the purpose of 
determining whether a licensee is a small business as defined by the 
SBA, each licensee would need to be evaluated within its own business 
area.
    44. The Commission is unable at this time to estimate the number of 
small businesses which could be impacted by the rules. The Commission's 
1994 Annual Report on PLMRs \125\ indicates that at the end of fiscal 
year 1994 there were 1,087,267 licensees operating 12,481,989 
transmitters in the PLMR bands below 512 MHz. Because any entity 
engaged in a commercial activity is eligible to hold a PLMR license, 
the proposed rules in this context could potentially impact every small 
business in the United States.
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    \125\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at paragraph 116.
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    45. Amateur Radio Service. We estimate that 8,000 applicants will 
apply for vanity call signs in FY 2000. All are presumed to be 
individuals. All other amateur licensees are exempt from payment of 
regulatory fees.
    46. Aviation and Marine Radio Service. Small businesses in the 
aviation and marine radio services use a marine very high frequency 
(VHF) radio, any type of emergency position indicating radio beacon 
(EPIRB) and/or radar, a VHF aircraft radio, and/or any type of 
emergency locator transmitter (ELT). The Commission has not developed a 
definition of small entities specifically applicable to these small 
businesses. The applicable definition of small entity is the definition 
under the SBA rules for radiotelephone communications.\126\
---------------------------------------------------------------------------

    \126\ 13 CFR 121.201, SIC code 4812.
---------------------------------------------------------------------------

    47. Most applicants for recreational licenses are individuals. 
Approximately 581,000 ship station licensees and 131,000 aircraft 
station licensees operate domestically and are not subject to the radio 
carriage requirements of any statute or treaty. For purposes of our 
evaluations and conclusions in this IRFA, we estimate that there may be 
at least 712,000 potential licensees which are individuals or are small 
entities, as that term is defined by the SBA. We estimate that only 
16,800 will be subject to FY 2000 regulatory fees.
    48. Fixed Microwave Services. Microwave services include common 
carrier,\127\ private-operational fixed,\128\ and broadcast auxiliary 
radio services.\129\ At present, there are approximately 22,015 common 
carrier fixed licensees and 61,670 private operational-fixed licensees 
and broadcast auxiliary radio licensees in the microwave services. The 
Commission has not yet defined a small business with respect to 
microwave services. For purposes of this IRFA, we will use the SBA's 
definition applicable to radiotelephone companies--i.e., an entity with 
no more than 1,500 persons.\130\ We estimate that all of the Fixed 
Microwave licensees (excluding broadcast auxiliary licensees) would 
qualify as small entities under the SBA definition for radiotelephone 
companies.
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    \127\ 47 CFR 101 et seq. (formerly, part 21 of the Commission's 
Rules).
    \128\ Persons eligible under parts 80 and 90 of the Commission's 
rules can use Private Operational-Fixed Microwave services. See 47 
CFR parts 80 and 90. Stations in this service are called 
operational-fixed to distinguish them from common carrier and public 
fixed stations. Only the licensee may use the operational-fixed 
station, and only for communications related to the licensee's 
commercial, industrial, or safety operations.
    \129\ Auxiliary Microwave Service is governed by part 74 of 
Title 47 of the Commission's Rules. See 47 CFR 74 et seq. Available 
to licensees of broadcast stations and to broadcast and cable 
network entities, broadcast auxiliary microwave stations are used 
for relaying broadcast television signals from the studio to the 
transmitter, or between two points such as a main studio and an 
auxiliary studio. The service also includes mobile TV pickups, which 
relay signals from a remote location back to the studio.
    \130\ 13 CFR 121.201, SIC 4812.
---------------------------------------------------------------------------

    49. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, highway 
maintenance, and emergency medical services.\131\ There are a total of 
approximately 127,540 licensees within these services. Governmental 
entities \132\ as well as private businesses comprise the licensees for 
these services. As indicated supra in paragraph four of this IRFA, all 
governmental entities with populations of less than 50,000 fall within 
the definition of a small entity.\133\ All licensees in this category 
are exempt from the payment of regulatory fees.
---------------------------------------------------------------------------

    \131\ With the exception of the special emergency service, these 
services are governed by Subpart B of part 90 of the Commission's 
Rules, 47 CFR 90.15 through 90.27. The police service includes 
26,608 licensees that serve state, county, and municipal enforcement 
through telephony (voice), telegraphy (code) and teletype and 
facsimile (printed material). The fire radio service includes 22,677 
licensees comprised of private volunteer or professional fire 
companies as well as units under governmental control. The local 
government service that is presently comprised of 40,512 licensees 
that are state, county, or municipal entities that use the radio for 
official purposes not covered by other public safety services. There 
are 7,325 licensees within the forestry service which is comprised 
of licensees from state departments of conservation and private 
forest organizations who set up communications networks among fire 
lookout towers and ground crews. The 9,480 state and local 
governments are licensed to highway maintenance service provide 
emergency and routine communications to aid other public safety 
services to keep main roads safe for vehicular traffic. The 1,460 
licensees in the Emergency Medical Radio Service (EMRS) use the 39 
channels allocated to this service for emergency medical service 
communications related to the delivery of emergency medical 
treatment. 47 CFR 90.15 through 90.27. The 19,478 licensees in the 
special emergency service include medical services, rescue 
organizations, veterinarians, handicapped persons, disaster relief 
organizations, school buses, beach patrols, establishments in 
isolated areas, communications standby facilities, and emergency 
repair of public communications facilities. 47 CFR 90.33 through 
90.55.
    \132\ 47 CFR 1.1162.
    \133\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

    50. Personal Radio Services. Personal radio services provide short-
range, low power radio for personal communications, radio signaling, 
and business communications not provided for in other services. The 
services include the citizen's band (CB) radio service, general mobile 
radio service (GMRS), radio control radio service, and family radio 
service (FRS).\134\ Since the CB, GMRS, and FRS licensees are 
individuals, no small business definition applies for these services. 
We are unable at this time to estimate the number of other licensees 
that would qualify as small under the SBA's definition; however, only 
GMRS licensees are subject to regulatory fees.
---------------------------------------------------------------------------

    \134\ Licensees in the Citizens Band (CB) Radio Service, General 
Mobile Radio Service (GMRS), Radio Control (R/C) Radio Service and 
Family Radio Service (FRS) are governed by Subpart D, Subpart A, 
Subpart C, and Subpart B, respectively, of part 95 of the 
Commission's Rules. 47 CFR 95.401 through 95.428; 95.1 through 
95.181; 95.201 through 95.225; 47 CFR 95.191 through 95.194.
---------------------------------------------------------------------------

    51. Offshore Radiotelephone Service. This service operates on 
several UHF TV broadcast channels that are not used for TV broadcasting 
in the coastal area of the states bordering the Gulf of Mexico.\135\ 
Presently, there are approximately 55 licensees in this

[[Page 19693]]

service. We are unable at this time to estimate the number of licensees 
that would qualify as small under the SBA's definition for 
radiotelephone communications.
---------------------------------------------------------------------------

    \135\ This service is governed by subpart 1 of part 22 of the 
Commission's Rules. See 47 CFR 22.1001 through 22.1037.
---------------------------------------------------------------------------

    52. Wireless Communications Services. This service can be used for 
fixed, mobile, radiolocation and digital audio broadcasting satellite 
uses. The Commission defined ``small business'' for the wireless 
communications services (WCS) auction as an entity with average gross 
revenues of $40 million for each of the three preceding years, and a 
``very small business'' as an entity with average gross revenues of $15 
million for each of the three preceding years. The Commission auctioned 
geographic area licenses in the WCS service. In the auction, there were 
seven winning bidders that qualified as very small business entities, 
and one that qualified as a small business entity. We conclude that the 
number of geographic area WCS licensees affected includes these eight 
entities.
    53. 39 GHz Service. The Commission defined ``small entity'' for 39 
GHz licenses as an entity that has average gross revenues of less than 
$40 million in the three previous calendar years.\136\ An additional 
classification for ``very small business'' was added and is defined as 
an entity that, together with their affiliates, has average gross 
revenues of not more than $15 million for the preceding three calendar 
years.\137\ These regulations defining ``small entity'' in the context 
of 39 GHz auctions have been approved by the SBA. The auction of the 
2,173 39 GHz licenses began on April 12, 2000 and closed on May 8, 
2000. The 18 bidders who claimed small business status won 849 
licenses.
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    \136\ See In the Matter of Amendment of the Commission's Rules 
Regarding the 37.0-38.6 GHz and 38.6-40.0 GHz Band, Report and 
Order, 12 FCC Rcd 18600 (1997).
    \137\ Id.
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    54. Local Multipoint Distribution Service. The auction of the 1,030 
Local Multipoint Distribution Service (LMDS) licenses began on February 
18, 1998 and closed on March 25, 1998. The Commission defined ``small 
entity'' for LMDS licenses as an entity that has average gross revenues 
of less than $40 million in the three previous calendar years.\138\ An 
additional classification for ``very small business'' was added and is 
defined as an entity that, together with their affiliates, has average 
gross revenues of not more than $15 million for the preceding three 
calendar years.\139\ These regulations defining ``small entity'' in the 
context of LMDS auctions have been approved by the SBA. There were 93 
winning bidders that qualified as small entities in the LMDS auctions. 
A total of 93 small and very small business bidders won approximately 
277 A Block licenses and 387 B Block licenses. On March 27, 1999, the 
Commission re-auctioned 161 licenses; there were 40 winning bidders. 
Based on this information, we conclude that the number of small LMDS 
licenses will include the 93 winning bidders in the first auction and 
the 40 winning bidders in the re-auction, for a total of 133 small 
entity LMDS providers as defined by the SBA and the Commission's 
auction rules.
---------------------------------------------------------------------------

    \138\ See Local Multipoint Distribution Service, Second Report 
and Order, 12 FCC Rcd 12545 (1997).
    \139\ Id.
---------------------------------------------------------------------------

    55. 218-219 MHz Service. The first auction of 218-219 MHz spectrum 
resulted in 170 entities winning licenses for 595 Metropolitan 
Statistical Area (MSA) licenses. Of the 594 licenses, 557 were won by 
entities qualifying as a small business. For that auction, we defined a 
small business as an entity that, together with its affiliates, has no 
more than a $6 million net worth and, after federal income taxes 
(excluding any carry over losses), has no more than $2 million in 
annual profits each year for the previous two years.\140\ In the 218-
219 MHz Report and Order and Memorandum Opinion and Order, we defined a 
small business as an entity that, together with its affiliates and 
persons or entities that hold interests in such an entity and their 
affiliates, has average annual gross revenues not to exceed $15 million 
for the preceding three years.\141\ A very small business is defined as 
an entity that, together with its affiliates and persons or entities 
that hold interests in such an entity and their affiliates, has average 
annual gross revenues not to exceed $3 million for the preceding three 
years. We cannot estimate, however, the number of licenses that will be 
won by entities qualifying as small or very small businesses under our 
rules in future auctions of 218-219 MHz spectrum. Given the success of 
small businesses in the previous auction, and the above discussion 
regarding the prevalence of small businesses in the subscription 
television services and message communications industries, we assume 
for purposes of this IRFA that in future auctions, all of the licenses 
may be awarded to small businesses, which would be affected by the rule 
changes we propose.
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    \140\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding, PP WT Docket No. 93-253, Fourth Report and 
Order, 59 FR 24947 (May 13, 1994).
    \141\ In the Matter of Amendment of Part 95 of the Commission's 
Rules to Provide Regulatory Flexibility in the 218-219 MHz Service, 
WT Docket No. 98-169, Report and Order and Memorandum Opinion and 
Order, 64 FR 59656. (November 3, 1999).
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IV. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

    56. With certain exceptions, the Commission's Schedule of 
Regulatory Fees applies to all Commission licensees and regulatees. 
Most licensees will be required to count the number of licenses or call 
signs authorized, complete and submit an FCC Form 159 (``FCC Remittance 
Advice''), and pay a regulatory fee based on the number of licenses or 
call signs.\142\ Interstate telephone service providers must compute 
their annual regulatory fee based on their interstate and international 
end-user revenue using information they already supply to the 
Commission in compliance with the Form 499-A, Telecommunications 
Reporting Worksheet, and they must complete and submit the FCC Form 
159. Compliance with the fee schedule will require some licensees to 
tabulate the number of units (e.g., cellular telephones, pagers, cable 
TV subscribers) they have in service, and complete and submit an FCC 
Form 159. Licensees ordinarily will keep a list of the number of units 
they have in service as part of their normal business practices. No 
additional outside professional skills are required to complete the FCC 
Form 159, and it can be completed by the employees

[[Page 19694]]

responsible for an entity's business records.
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    \142\ The following categories are exempt from the Commission's 
Schedule of Regulatory Fees: Amateur radio licensees (except 
applicants for vanity call signs) and operators in other non-
licensed services (e.g., Personal Radio, part 15, ship and 
aircraft). Governments and non-profit (exempt under section 501(c) 
of the Internal Revenue Code) entities are exempt from payment of 
regulatory fees and need not submit payment. Non-commercial 
educational broadcast licensees are exempt from regulatory fees as 
are licensees of auxiliary broadcast services such as low power 
auxiliary stations, television auxiliary service stations, remote 
pickup stations and aural broadcast auxiliary stations where such 
licenses are used in conjunction with commonly owned non-commercial 
educational stations. Emergency Alert System licenses for auxiliary 
service facilities are also exempt as are instructional television 
fixed service licensees. Regulatory fees are automatically waived 
for the licensee of any translator station that: (1) is not licensed 
to, in whole or in part, and does not have common ownership with, 
the licensee of a commercial broadcast station; (2) does not derive 
income from advertising; and (3) is dependent on subscriptions or 
contributions from members of the community served for support. 
Receive only earth station permittees are exempt from payment of 
regulatory fees. A regulatee will be relieved of its fee payment 
requirement if its total fee due, including all categories of fees 
for which payment is due by the entity, amounts to less than $10.
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    57. Each licensee must submit the FCC Form 159 to the Commission's 
lockbox bank after computing the number of units subject to the fee. 
Licensees may also file electronically to minimize the burden of 
submitting multiple copies of the FCC Form 159. Applicants who pay 
small fees in advance and provide fee information as part of their 
application must use FCC Form 159.
    58. Licensees and regulatees are advised that failure to submit the 
required regulatory fee in a timely manner will subject the licensee or 
regulatee to a late payment fee of 25 percent in addition to the 
required fee.\143\ Until payment is received, no new or pending 
applications will be processed, and existing authorizations may be 
subject to rescission.\144\ Further, in accordance with the Debt 
Collection Improvement Act of 1996, federal agencies may bar a person 
or entity from obtaining a federal loan or loan insurance guarantee if 
that person or entity fails to pay a delinquent debt owed to any 
federal agency.\145\ Nonpayment of regulatory fees is a debt owed the 
United States pursuant to 31 U.S.C. 3711 et seq., and the Debt 
Collection Improvement Act of 1996, Public Law 194-134. Appropriate 
enforcement measures, e.g., interest as well as administrative and 
judicial remedies, may be exercised by the Commission. Debts owed to 
the Commission may result in a person or entity being denied a federal 
loan or loan guarantee pending before another federal agency until such 
obligations are paid.\146\
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    \143\ 47 U.S.C. 1.1164(a).
    \144\ 47 U.S.C. 1.1164(c).
    \145\ Public Law 104-134, 110 Stat. 1321 (1996).
    \146\ 31 U.S.C. 7701(c)(2)(B).
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    59. The Commission's rules currently provide for relief in 
exceptional circumstances. Persons or entities that believe they have 
been placed in the wrong regulatory fee category or are experiencing 
extraordinary and compelling financial hardship, upon a showing that 
such circumstances override the public interest in reimbursing the 
Commission for its regulatory costs, may request a waiver, reduction or 
deferment of payment of the regulatory fee.\147\ However, timely 
submission of the required regulatory fee must accompany requests for 
waivers or reductions. This will avoid any late payment penalty if the 
request is denied. The fee will be refunded if the request is granted. 
In exceptional and compelling instances (where payment of the 
regulatory fee along with the waiver or reduction request could result 
in reduction of service to a community or other financial hardship to 
the licensee), the Commission will accept a petition to defer payment 
along with a waiver or reduction request.
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    \147\ 47 U.S.C. 1.1166.
---------------------------------------------------------------------------

V. Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    60. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives: (1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities. As described in Section IV of this IRFA, supra, we have 
created procedures in which all fee-filing licensees and regulatees use 
a single form, FCC Form 159, and have described in plain language the 
general filing requirements. We have also created Attachment F, infra, 
which gives ``Detailed Guidance on Who Must Pay Regulatory Fees.'' 
Because the collection of fees is statutory, our efforts at proposing 
alternatives are constrained and, throughout these annual fee 
proceedings, have been largely directed toward simplifying the 
instructions and necessary procedures for all filers. We invite comment 
on other alternatives that might simplify our fee procedures or 
otherwise benefit small entities, while remaining consistent with our 
statutory responsibilities in this proceeding.
    61. The Omnibus Consolidated and Emergency Supplemental 
Appropriations Act for FY 2000, Public Law 106-553 requires the 
Commission 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, as amended, has required the 
Commission to collect for Fiscal Year (FY) 2000.\148\ We seek comment 
on the proposed methodology for implementing these statutory 
requirements and any other potential impact of these proposals on small 
entities.
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    \148\ 47 U.S.C. 159(a).
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    62. With the use of actual cost accounting data for computation of 
regulatory fees, we found that some fees which were very small in 
previous years would have increased dramatically. The methodology 
proposed in this NPRM minimizes this impact by limiting the amount of 
increase and shifting costs to other services which, for the most part, 
are larger entities.
    63. Several categories of licensees and regulatees are exempt from 
payment of regulatory fees. See, e.g., footnote 142, supra, and 
Attachment F of the NPRM, infra.

VI. Federal Rules that May Duplicate, Overlap, or Conflict with the 
Proposed Rules

    64. None.

BILLING CODE 6712-01-U

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[[Page 19702]]


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Attachment F; Detailed Guidance on Who Must Pay Regulatory Fees

    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,\150\ as modified in the instant NPRM. 
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 through 2000, and the services subject 
to the fee schedule. 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.\151\
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    \150\ 47 U.S.C. 159(g)
    \151\ 47 U.S.C. 159(b)(2), (3).
---------------------------------------------------------------------------

    2. Exemptions. Governments and nonprofit entities are exempt from 
paying regulatory fees and should not submit payment. A nonprofit 
entity is required to have on file with the Commission an IRS 
Determination Letter documenting that it is exempt from taxes under 
section 501 of the Internal Revenue Code or the

[[Page 19703]]

certification of a governmental authority attesting to its nonprofit 
status. In instances where the IRS Determination Letter or the letter 
of certification from a governmental authority attesting to its 
nonprofit status is not sufficiently current, the nonprofit entity may 
be asked to submit more current documentation. The governmental 
exemption applies even where the government-owned or community-owned 
facility is in competition with a commercial operation. Other specific 
exemptions are discussed below in the descriptions of other particular 
service categories.

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.\152\ 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 expiration date of those authorizations will 
reflect only the unexpired term of the underlying license rather than a 
new license term.
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    \152\ 47 U.S.C. 159(b)(1)(A).
---------------------------------------------------------------------------

a. Exclusive Use Services

    4. Private Land Mobile Radio Services (PLMRS) (Exclusive Use): 
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).\153\ For FY 2001, PLMRS 
licensees will pay a $5 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.\154\ The total regulatory fee due is 
$50 for the ten-year term.
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    \153\ 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 Commerical 
Mobile Radio Service (CMRS). Those who have elected to change to the 
CMRS are referred to paragraph 14 of this Attachment.
    \154\ Although this fee category includes licenses with ten-year 
terms, the estimated volume of ten-year license applications in FY 
2000 is less than one-tenth of one percent and, therefore, is 
statistically insignificant.
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    5. Microwave Services: These services include private and 
commercial microwave systems and private and commercial 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. 
Commercial systems typically are used for video or data transmission or 
distribution. For FY 2001, Microwave licensees will pay a $5 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 $50 for the ten-year license 
term.
    6. 218-219 MHz (Formerly Interactive Video Data Service (IVDS)): 
The 218-219 MHz service 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 218-219 MHz 
service provides information, products, and services, and also the 
capability to obtain responses from subscribers in a specific service 
area. The 218-219 MHz service is offered on a private carrier basis. 
The Commission did not anticipate receiving any applications in the 
218-219 MHz service during FY 2000. For FY 2001, we anticipate 
receiving 25 applications and propose that the annual regulatory fee 
for 218-219 MHz licensees be set at $10 per application. The total 
regulatory fee due would be $50 for the five-year license term.

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 Telecommunications Act of 1996 gave the Commission the 
authority to license certain ship stations by rule rather than by 
individual license. The Commission exercises that authority. Private 
boat operators sailing entirely within domestic U.S. waters and who are 
not otherwise required by treaty or agreement to carry a radio, are no 
longer required to hold a marine license, and they will not be required 
to pay a regulatory fee. For FY 2001, parties required to be licensed 
and those choosing to be licensed for Marine (Ship) Stations will pay a 
$10 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 $100 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 2001, 
licensees of Marine (Coast) Stations will pay a $5 annual regulatory 
fee per call sign, 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 $50 per call sign for the ten-year license 
term.
    9. Private Land Mobile Radio Services (PLMRS)(Shared Use): 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 fixed 
stations on a shared basis and include radiolocation services, 
industrial radio services, and land transportation radio services. For 
FY 2001, licensees of services in this category will pay a $5 annual 
regulatory fee per call sign, 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 $50 for the ten-year license 
term.
    10. Aviation (Aircraft) Service: These services include stations 
authorized to provide communications between aircraft and between 
aircraft and ground stations and include frequencies used to 
communicate with air traffic control facilities pursuant to part 87 of 
the Commission's Rules. The Telecommunications Act of 1996 gave the 
Commission the authority to license certain aircraft radio stations by 
rule rather than by individual license. The commission exercises that 
authority.

[[Page 19704]]

Private aircraft operators flying entirely within domestic U.S. 
airspace and who are not otherwise required by treaty or agreement to 
carry a radio are no longer required to hold an aircraft license, and 
they will not be required to pay a regulatory fee. For FY 2001, parties 
required to be licensed and those choosing to be licensed for Aviation 
(Aircraft) Stations will pay a $5 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 $50 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 2001, 
licensees of Aviation (Ground) Stations will pay a $10 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 $50 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 2001, GMRS licensees will pay a $5 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 $25 per license for the five-year license term.

c. Amateur Radio Vanity Call Signs

    13. Amateur Vanity Call Signs: This category covers voluntary 
requests for specific call signs in the Amateur Radio Service 
authorized under part 97 of the Commission's Rules. Applicants for 
Amateur Vanity Call-Signs will continue to pay a $1.40 annual 
regulatory fee per call sign, as prescribed in the FY 2000 fee 
schedule, payable for an entire ten-year license term at the time of 
application for a vanity call sign until the FY 2001 fee schedule 
becomes effective. The total regulatory fee due would be $14 per 
license for the ten-year license term.\155\ For FY 2001, Amateur Vanity 
Call Sign applicants will pay a $1.20 annual regulatory fee per call 
sign, payable for an entire ten-year term at the time of application 
for a new, renewal or reinstatement license. The total regulatory fee 
due is $12 per call sign for the ten-year license term.
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    \155\ 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.
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d. Commercial Wireless Radio Services

    14. Commercial Mobile Radio Services (CMRS) Mobile Services: The 
Commercial Mobile Radio Service (CMRS) is an ``umbrella'' descriptive 
term attributed to various existing broadband 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, 
24, 27, 80 and 90, general rules for CMRS are contained in part 20. 
CMRS Mobile Services will include: Specialized Mobile Radio Services 
(part 90); \156\ Broadband Personal Communications Services (part 24), 
Public Coast Stations (part 80); Public Mobile Radio (Cellular, 800 MHz 
Air-Ground Radiotelephone, and Offshore Radio Services) (part 22); and 
Wireless Communications Service (part 27). Each licensee in this group 
will pay an annual regulatory fee for each mobile or cellular unit 
(mobile or telephone number), assigned to its customers, including 
resellers of its services. For FY 2001, the regulatory fee is $.30 per 
unit.
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    \156\ 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 Attachment.
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    15. Commercial Mobile Radio Services (CMRS) Messaging Services: The 
Commercial Mobile Radio Service (CMRS) is an ``umbrella'' descriptive 
term attributed to various existing narrowband 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 Messaging Services include 
certain licensees which formerly were licensed as part of the Private 
Radio Services (e.g., Private Paging and Radiotelephone Service), 
licensees formerly licensed as part of the Common Carrier Radio 
Services (e.g., Public Mobile One-Way Paging), licensees of Narrowband 
Personal Communications Service (PCS) (e.g., one-way and two-way 
paging), and 220-222 MHz Band and Interconnected Business Radio 
Service. In addition, this category includes small SMR systems 
authorized for use of less than 10 MHz of bandwidth. While specific 
rules pertaining to each covered service remain in separate parts 22, 
24 and 90, general rules for CMRS are contained in part 20. Each 
licensee in the CMRS Messaging Services will pay an annual regulatory 
fee for each unit (pager, telephone number, or mobile) assigned to its 
customers, including resellers of its services. For FY 2001, the 
regulatory fee is $.05 per unit.
    16. Finally, we are reiterating our definition of CMRS payment 
units to say that fees are assessable on each PCS or cellular telephone 
and each one-way or two-way pager capable of receiving or transmitting 
information, whether or not the unit is ``active'' on the ``as-of'' 
date for payment of these fees. The unit becomes ``feeable'' if the 
unit end user or assignee has possession of the unit and the unit is 
capable of transmitting or receiving voice or non-voice messages or 
data, and the unit is either owned or operated by the licensee of the 
CMRS system or a reseller, or the end user of a unit has a contractual 
agreement for the provision of a CMRS service from a CMRS system 
licensee or a CMRS service reseller. The responsible payer of the 
regulatory fee is the CMRS licensee. For example, John Doe purchases a 
pager and obtains a paging services contract from Paging Licensee X. 
Paging Licensee X is responsible for paying the applicable regulatory 
fee for this unit. Likewise, Cellular Licensee Y donates cellular 
phones to a high school and the high school either pays for or obtains 
free cellular service from Cellular Licensee Y. In this situation, 
Cellular Licensee Y is responsible for paying the applicable regulatory 
fees for these units.

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.

[[Page 19705]]

a. Commercial 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.\157\ We have 
combined class of station and city grade contour population data to 
formulate a schedule of radio fees which differentiate between stations 
based on class of station and population served. In general, higher 
class stations and stations in metropolitan areas will pay higher fees 
than lower class stations and stations located in rural areas. The 
specific fee that a station must pay is determined by where it ranks 
after weighting its fee requirement (determined by class of station) 
with its population. The regulatory fee classifications for Radio 
Stations for FY 2001 are as follows:
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    \157\ 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.
[GRAPHIC] [TIFF OMITTED] TP16AP01.070

    19. Licensees may determine the appropriate fee payment by 
referring to the FCC's internet world wide web site (http://www.fcc.gov) or by calling the FCC's National Call Center (1-888-225-
5322). The same information may be included in the Public Notices 
mailed to each licensee for which we have a current address on file 
(Note: Non-receipt of a Public Notice does not relieve a licensee of 
its obligation to submit its regulatory fee payment).

b. Construction Permits--Commercial AM Radio

    20. This category includes holders of permits to construct new 
Commercial AM Stations. For FY 2001, permittees will pay a fee of $280 
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 group within which the station 
appears.

c. Construction Permits--Commercial FM Radio

    21. This category includes holders of permits to construct new 
Commercial FM Stations. For FY 2001, permittees will pay a fee of $925 
for each permit

[[Page 19706]]

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 group within which the station appears.

d. Commercial Television Stations

    22. 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. 69, 2001 
Edition, Warren Publishing, Inc. The fees for each category of station 
are as follows:

VHF Markets 1-10..............................................   $45,100
VHF Markets 11-25.............................................    32,825
VHF Markets 26-50.............................................    21,325
VHF Markets 51-100............................................    13,750
VHF Remaining Markets.........................................     3,275
UHF Markets 1-10..............................................    15,150
UHF Markets 11-25.............................................    12,300
UHF Markets 26-50.............................................     7,075
UHF Markets 51-100............................................     4,075
UHF Remaining Markets.........................................     1,150
 

e. Commercial Television Satellite Stations

    23. Commonly owned Television Satellite Stations in any market 
(authorized pursuant to Note 5 of Sec. 73.3555 of the Commission's 
Rules) that retransmit programming of the primary station are assessed 
a fee of $740 annually. Those stations designated as Television 
Satellite Stations in the 2001 Edition of the Television and Cable 
Factbook are subject to 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

    24. This category includes holders of permits to construct new 
Commercial VHF Television Stations. For FY 2001, VHF permittees will 
pay an annual regulatory fee of $3,075. This fee would no longer be 
applicable when an operating license is issued. Instead, licensees 
would pay a fee based upon the designated market of the station.

g. Construction Permits--Commercial UHF Television Stations

    25. This category includes holders of permits to construct new UHF 
Television Stations. For FY 2001, UHF Television permittees will pay an 
annual regulatory fee of $4,000. This fee would no longer be applicable 
when an operating license is issued. Instead, licensees would pay a fee 
based upon the designated market of the station.

h. Construction Permits--Satellite Television Stations

    26. The fee for UHF and VHF Television Satellite Station 
construction permits for FY 2001 is $480. 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

    27. 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 1 kW for a UHF facility and, generally, 0.01 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, 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 Report and Order. Community 
based Translators that meet certain requirements will have their fees 
waived.\158\ For FY 2001, licensees in low power television, FM 
translator and booster, and TV translator and booster category will pay 
a regulatory fee of $305 for each license held.
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    \158\ See 10 FCC Rcd 12759, 12762 (1995).
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j. Broadcast Auxiliary Stations

    28. This category includes licensees of remote pickup stations 
(either base or mobile) and associated accessory equipment authorized 
pursuant to a single license, Aural Broadcast Auxiliary Stations 
(Studio Transmitter Link and Inter-City Relay) and Television Broadcast 
Auxiliary Stations (TV Pickup, TV Studio Transmitter Link, TV Relay) 
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. This category does not 
include translators and boosters (see paragraph 26 infra). For FY 2001, 
licensees of Commercial Auxiliary Stations will pay a $10 annual 
regulatory fee on a per call sign basis.

k. Multipoint Distribution Service

    29. This category includes Multipoint Distribution Service (MDS), 
Local Multipoint Distribution (LMDS), and Multichannel Multipoint 
Distribution Service (MMDS), authorized under parts 21 and 101 of the 
Commission's Rules to use microwave frequencies for video and data 
distribution within the United States. For FY 2001, MDS, LMDS, and MMDS 
stations will pay an annual regulatory fee of $450 per call sign.

3. Cable Services

a. Cable Television Systems

    30. 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 2001, Cable Systems 
will pay a regulatory fee of $.49 per subscriber.\159\ Payments for 
Cable Systems are to be made on a per subscriber basis as of December 
31, 2000. 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 Report and 
Order, Appendix B at paragraph 31.
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    \159\ 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 Report and Order at 
paragraph 100.
---------------------------------------------------------------------------

b. Cable Antenna Relay Service

    31. 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 2001,

[[Page 19707]]

licensees will pay an annual regulatory fee of $55 per CARS license.

4. Common Carrier Services

a. Commercial Microwave (Domestic Public Fixed Radio Service)

    32. This category includes licensees in the Point-to-Point 
Microwave Radio Service, Local Television Transmission Radio Service, 
and Digital Electronic Message Service, authorized under part 101 of 
the Commission's Rules to use microwave frequencies for video and data 
distribution within the United States. These services are now included 
in the Microwave category (see paragraph 5 supra).

b. Interstate Telephone Service Providers

    33. This category includes all providers of local and telephone 
services to end users. Covered services include the interstate and 
international portion of wireline local exchange service, local and 
long distance private line services for both voice and data, dedicated 
and network packet and packet-like services, long distance message 
telephone services, and other local and toll services. Providers of 
such services are referred to herein as ``interstate telephone service 
providers''.
    Interstate service providers include CAP/CLECs, incumbent local 
exchange carriers (local telephone operating companies), Interexchange 
carriers (long distance telephone companies), local resellers, OSPs 
(operator service providers that enable customers to make away from 
home calls and to place calls with alternative billing arrangements), 
payphone service providers, pre-paid card, private service providers, 
satellite carriers that provide fixed local or message toll services, 
shared tenant service providers, toll resellers, and other local and 
other service providers.
    To avoid imposing a double payment burden on resellers, we base the 
regulatory fee on end-user revenues. Interstate telephone service 
providers, including resellers, must submit fee payments based upon 
their proportionate share of interstate and international end-user 
revenues for local and toll services. We use the terms end-user 
revenues, local service and toll service, based on the methodology used 
for calculating contributions to the Universal Service support 
mechanisms.\160\ Interstate telephone service providers do not pay the 
Common Carrier regulatory fee on revenue from the provision of 
intrastate local and toll services, wireless monthly and local message 
services, satellite toll services, carrier's carrier telecommunications 
services, customer premises equipment, Internet service and non-
telecommunications services. For FY 2001, carriers must multiply their 
interstate and international revenue from subject local and toll 
services by the factor 0.00132 to determine the appropriate fee for 
this category of service. Regulatees may want to use the following 
worksheet to determine their fee payment:
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    \160\ See 1998 Biennial Regulatory Review--Streamlined 
Contributor Reporting Requirements Associated with Administration of 
Telecommunications Relay Services, North American Numbering Plan, 
Local Number Portability, and Universal Service Support Mechanisms, 
Report and Order, FCC 99-175, CC Docket No. 98-171 (rel. July 14, 
1999), 64 FR 41320 (Jul. 30, 1999) (Contributor Reporting 
Requirements Order).

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5. International Services

a. Earth Stations

    34. 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.\161\ 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 2000, licensees of VSATs, Mobile Satellite Earth Stations, and 
Fixed-Satellite For FY 2001, Transmit/Receive and Transmit-Only Earth 
Stations will pay a fee of $180 per authorization or registration as 
well as a separate fee of $180 for each associated Hub Station.
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    \161\ Mobile earth stations are hand-held or vehicle-based units 
capable of operation while the operator or 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 2001.
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    35. Receive-only earth stations. For FY 2001, there is no 
regulatory fee for receive-only earth stations.

b. Space Stations (Geostationary Orbit)

    36. Geostationary Orbit (also referred to as 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

[[Page 19710]]

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 2001, entities authorized to operate 
geostationary space stations (including DBS satellites) will be 
assessed an annual regulatory fee of $98,125 per operational station in 
orbit. Payment is required for any geostationary satellite that has 
been launched and tested and is authorized to provide service.

c. Space Stations (Non-Geostationary Orbit)

    37. Non-Geostationary Orbit Systems (such as Low Earth Orbit (LEO) 
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 2001, entities 
authorized to operate Non-Geostationary Orbit Systems (NGSOs) will be 
assessed an annual regulatory fee of $94,425 per operational system in 
orbit. Payment is required for any NGSO System that has one or more 
operational satellites operational. In our FY 1997 Report and Order at 
paragraph 75 we retained our requirement that licensees of LEOs pay the 
LEO regulatory fee upon their certification of operation of a single 
satellite pursuant to section 25.120(d). We require payment of this fee 
following commencement of operations of a system's first satellite to 
insure that we recover our regulatory costs related to LEO systems from 
licensees of these systems as early as possible so that other 
regulatees are not burdened with these costs any longer than necessary. 
Because section 25.120(d) has significant implications beyond 
regulatory fees (such as whether the entire planned cluster is 
operational in accordance with the terms and conditions of the license) 
we previously clarified our definition of an operational LEO satellite 
to prevent misinterpretation of our intent as follows:

    Licensees of Non-Geostationary Satellite Systems (such as LEOs) 
are assessed a regulatory fee upon the commencement of operation of 
a system's first satellite as reported annually pursuant to 
Secs. 25.142(c), 25.143(e), 25.145(g), or upon certification of 
operation of a single satellite pursuant to Sec. 25.120(d).

d. International Bearer Circuits

    38. Regulatory fees for International Bearer Circuits are to be 
paid by facilities-based common carriers (either domestic or 
international) 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 non-common carrier submarine cable 
operators is required for circuits sold on an indefeasible right of use 
(IRU) basis or leased to any customer, including themselves or their 
affiliates, other than an international common carrier authorized by 
the Commission to provide U.S. international common carrier services. 
See FY 1994 Report and Order at 5367. Payment of the international 
bearer circuit fee is also required by non-common carrier satellite 
operators for circuits sold or leased to any customer, including 
themselves or their affiliates, other than an international common 
carrier authorized by the Commission to provide U.S. international 
common carrier services. 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 
2001, the regulatory fee is $5 for each active 64 kbps circuit or 
equivalent. For analog television channels we will assess fees as 
follows:

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

e. 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 2001, International Public Fixed Radio Service licensees will 
pay a $1,275 annual regulatory fee per call sign.

f. 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 2001, International HF Broadcast 
Stations will pay an annual regulatory fee of $680 per station license.

Attachment G; Description of FCC Activities

    Licensing: This activity includes the authorization or licensing of 
radio stations, telecommunications equipment and radio operators, as 
well as the authorization of common carrier and other services and 
facilities. Includes direct organizational FTE and FTE workyear effort 
provided by staff offices to support policy direction, program 
development, legal services, and executive direction, as well as 
support services associated with licensing activities.
    Competition: This activity includes formal inquiries, rulemaking 
proceedings to establish or amend the Commission's rules and 
regulations, action on petitions for rulemaking, and requests for rule 
interpretations or waivers; economic studies and analyses; spectrum 
planning, modeling, propagation-interference analyses and allocation; 
and development of equipment standards. Includes direct organizational 
FTE and FTE workyear effort provided by staff offices to support policy 
direction, program development, legal services, and executive 
direction, as well as support services associated with activities to 
promote competition.
    Enforcement: This activity includes enforcement of the Commission's 
rules, regulations and authorizations, including investigations, 
inspections, compliance monitoring, and sanctions of all types. Also 
includes the receipt and disposition of formal and informal complaints 
regarding common carrier rates and services, the review and acceptance/
rejection of carrier tariffs, and the review, prescription and audit of 
carrier accounting practices. Includes direct organizational FTE and 
FTE workyear effort provided by staff offices to support policy 
direction, program development, legal services, and executive 
direction, as well as support services associated with enforcement 
activities.

[[Page 19711]]

    Consumer Information Services: This activity includes the 
publication and dissemination of Commission decisions and actions, and 
related activities; public reference and library services; the 
duplication and dissemination of Commission records and databases; the 
receipt and disposition of public inquiries; consumer, small business, 
and public assistance; and public affairs and media relations. Includes 
direct organizational FTE and FTE workyear effort provided by staff 
offices to support policy direction, program development, legal 
services, and executive direction, as well as support services 
associated with consumer information activities.
    Spectrum Management: This activity includes management of the 
electromagnetic spectrum as mandated by the Communications Act of 1934, 
as amended. Spectrum management includes the structure and processes 
for allocating, allotting, assigning, and licensing this scarce 
resource to the private sector and state and local governments in a way 
that promotes competition while ensuring that the public interest is 
best served. In order to manage spectrum in both an efficient and 
equitable manner, the Commission prepares economic, technical and 
engineering studies, coordinates with federal agencies, and represents 
U. S. industry in international for a. Includes direct organizational 
FTE and FTE workyear effort provided by staff offices to support policy 
direction, program development, legal services, and executive 
direction, as well as support services associated with spectrum 
management activities.

Attachment H; Factors, Measurements and Calculations That Go Into 
Determining Station Signal Contours and Associated Population 
Coverages

AM Stations

    Specific information on each day tower, including field ratio, 
phasing, spacing and orientation was retrieved, as well as the 
theoretical pattern RMS figure (mV/m @ 1 km) for the antenna system. 
The standard, or modified standard if pertinent, horizontal plane 
radiation pattern was calculated using techniques and methods specified 
in Secs. 73.150 and 73.152 of the Commission's rules.\162\ Radiation 
values were calculated for each of 72 radials around the transmitter 
site (every 5 degrees of azimuth). Next, estimated soil conductivity 
data was retrieved from a database representing the information in FCC 
Figure M3. Using the calculated horizontal radiation values, and the 
retrieved soil conductivity data, the distance to the city grade (5 mV/
m) contour was predicted for each of the 72 radials. The resulting 
distance to city grade contours were used to form a geographical 
polygon. Population counting was accomplished by determining which 1990 
block centroids were contained in the polygon. The sum of the 
population figures for all enclosed blocks represents the total 
population for the predicted city grade coverage area.
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    \162\ 47 CFR 73.150 and 73.152.
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FM Stations

    The maximum of the horizontal and vertical HAAT (m) and ERP (kW) 
was used. Where the antenna HAMSL was available, it was used in lieu of 
the overall HAAT figure to calculate specific HAAT figures for each of 
72 radials under study. Any available directional pattern information 
was applied as well, to produce a radial-specific ERP figure. The HAAT 
and ERP figures were used in conjunction with the propagation curves 
specified in Sec. 73.313 of the Commission's rules to predict the 
distance to the city grade (70 dBuV/m or 3.17 mV/m) contour for each of 
the 72 radials.\163\ The resulting distance to city grade contours were 
used to form a geographical polygon. Population counting was 
accomplished by determining which 1990 block centroids were contained 
in the polygon. The sum of the population figures for all enclosed 
blocks represents the total population for the predicted city grade 
coverage area.
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    \163\ 47 CFR 73.313.
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[FR Doc. 01-9407 Filed 4-13-01; 8:45 am]
BILLING CODE 6712-01-U