[Federal Register Volume 66, Number 133 (Wednesday, July 11, 2001)]
[Rules and Regulations]
[Pages 36177-36206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17114]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 01-76; FCC 01-196]


Assessment and Collection of Regulatory Fees for Fiscal Year 2001

AGENCY: Federal Communications Commission.

ACTION: Final Rule.

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SUMMARY: The Commission will revise its Schedule of Regulatory Fees in 
order to recover the amount of regulatory fees that Congress has 
required it to collect for fiscal year 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 
9(b)(3), respectively, for annual ``Mandatory Adjustments'' and 
``Permitted Amendments'' to the Schedule of Regulatory Fees.

EFFECTIVE DATE: September 9, 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: June 28, 2001.
    Released: July 2, 2001.
    By the Commission:

Table of Contents

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                                                              Paragraph
                           Topic                               numbers
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I. Introduction............................................            1
II. Background.............................................            4
III. Discussion
  A. Summary of FY 2001 Fee Methodology....................            9
  B. Development of FY 2001 Fees...........................
    i. Adjustment of Payment Units.........................           13
    ii. Calculation of Revenue Requirements................           14
    iii. Recalculation of Fees.............................           15
    iv. Discussion of Issues and Changes to Fee Schedule...           16
      a. Amateur Vanity Call Signs.........................           17
      b. Multipoint Distribution Service (MDS).............           18
      c. Commercial Mobile Radio Services (CMRS)...........           23
      d. UHF Television....................................           27
      e. INTELSAT Satellites...............................           29
      f. Mandatory Use of FCC Registration Number (FRN)....           30
  C. Procedures for Payment of Regulatory Fees.............           32
    i. Annual Payments of Standard Fees....................           33
    ii. Installment Payments for Large Fees................           34
    iii. Advance Payments of Small Fees....................           35
    iv. Minimum Fee Payment Liability......................           36
    v. Standard Fee Calculations and Payments..............           37
  D. Schedule of FY 2001 Regulatory Fees...................           39
  E. Revised Rules for Waivers, Reductions, and Deferrals..           40
  F. Enforcement...........................................           41
IV. Procedural Matters
  A. Ordering Clauses......................................           42
  B. Authority and Further Information.....................           43
Attachment A--Final 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 and Final Regulatory Fees
Attachment F--Detailed Guidance on Who Must Pay Regulatory
 Fees
Attachment G--Description of FCC Activities
Attachment H--Factors, Measurements, and Calculations that
 Determine Station Signal Contours and Population Coverages
Attachment I--Parties Filing Comments and Reply Comments
Attachment J `` AM and FM Radio Regulatory Fees
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I. Introduction

    1. By this Report and Order, the Commission concludes a proceeding 
to revise its Schedule of Regulatory Fees to collect the amount of 
regulatory fees that Congress, pursuant to section 9(a) of the 
Communications Act, as amended, has required us to collect for Fiscal 
Year (FY) 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\ See Attachment G for a description of these activities. This 
amount is $14,392,000 or approximately 7.75% more than the amount that 
Congress designated for

[[Page 36178]]

recovery through regulatory fees for FY 2000.\3\ We are revising 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 revising our fees, we adjusted the payment units and revenue 
requirement for each service subject to a fee, consistent with section 
159(b)(2). The 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\ 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, June 16, 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 (59 FR 30984, June 16, 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 9(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 (62 FR 59822, November 5, 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 (63 FR 35847, July 1, 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 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 (64 FR 35831, July 1, 1999) 
and FY 2000 (65 FR 44575, July 18, 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 applying 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 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. However, we are 
not making any ``Permitted Amendments.'' Collection procedure matters 
are discussed in paragraphs 31-37.
    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. In the following paragraphs, we describe in 
greater detail our methodology for establishing our FY 2001 regulatory 
fees.

[[Page 36179]]

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.\16\
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    \16\ 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 sesrvice increased 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.
iv. Discussion of Issues and Changes to Fee Schedule
    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 
44575).
a. Amateur Vanity Call Signs
    17. Amateur licensee Juddie D. Burgess supports the proposal to 
reduce the amateur vanity call sign regulatory fee for FY 2001, but 
questions why licensees must continue to pay a regulatory fee upon each 
renewal. Section 9 of the Communications Act, as amended, provides for 
recovery of the Commission's costs associated with its enforcement, 
policy and rulemaking, user information, and international 
activities.\17\ Each day, the Commission's staff is engaged in 
activities protecting the assignment of vanity call signs from 
complaints of improper assignment, illegal use of call signs assigned 
to another, requests to be assigned a call sign already assigned to 
another, and so forth. We continue to believe that it is appropriate to 
assess a regulatory fee at the time of renewal upon holders of amateur 
vanity call signs.
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    \17\ 47 U.S.C. 159(a)(1).
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b. Multipoint Distribution Service (MDS)
    18. WorldCom, Inc. (``WorldCom'') objects to the amount of increase 
proposed for MDS licensees, from $275 in FY 2000 to $450 in FY 2001, an 
increase of 64 percent. WorldCom argues that sections 9(i) and 9(b)(3) 
of the Communications Act, as amended, require regulatory fees to be 
based on the cost of regulating each industry, and contends that the 
Commission's methodology, which relies on a proportional increase in 
the fees allotted to each service, is contrary to these provisions. In 
any event, WorldCom asks the Commission to make a permitted amendment 
under section 9(b)(3) to reduce the MDS fee to eliminate the allegedly 
discriminatory treatment of MDS. WorldCom argues that the proposed 64 
percent increase in the MDS fee does not reflect a 64 percent increase 
in regulatory costs, but rather reflects the fact that the Commission's 
estimate of the number of MDS licenses dropped from 3,036 to 2,000 
following an update of the Commission's database. WorldCom asserts that 
there is no justification for raising the fee based on this factor and 
proposes that the fee be raised to no more than $295, reflecting the 
7.75 percent proportional increase in revenues for FY 2001. 
Alternatively, WorldCom proposes that the increase in fees be limited 
to 25 percent, as was done in FY 1997, which would result in a fee of 
$345.
    19. As to WorldCom's general disagreement with our ``mandatory 
adjustment'' methodology, we disagree that this methodology violates 
the statutory requirement of basing fees on costs. Our previous use, 
through FY 1998, of a cost-based accounting system represented our best 
efforts to take into account all of the statutory criteria for 
determining fees, and we are confident that we did so to the extent 
permitted by the accounting system available to us. As we learned in FY 
1997 and FY 1998, however, the existing cost accounting system did not 
allow us to fully match costs with appropriations, resulting in a 
shortfall in the revenues we would collect through fees. This has 
required us to adopt a procedure to ``normalize'' the revenue required 
from each service to meet the statutory requirement of fully funding 
our appropriations through fees. Attempting to use the available 
inadequate cost accounting system to recalculate costs does not, in our 
view, provide a means to ameliorate the situation. We believe that the 
mandatory adjustment methodology we proposed for FY 2001 represents the 
most valid method of normalizing revenue requirements pending the 
development of an improved cost accounting system and thereby enables 
us to best comply with the statute.
    20. We do not believe that WorldCom has justified making a 
``permitted'' amendment although the 64 percent increase in fees to 
which it would be subject is substantial. The increase in fees merely 
represents the use of updated, more accurate figures for the number of 
payment units. The use of more accurate data does not necessitate any 
amendment in order to conform to the standards of the statute. We 
recognize, as WorldCom points out, that our methodology might result in 
some anomalies, such as in the case of the international public fixed 
service, where it is estimated that there is only one licensee. In such 
cases, we would consider granting a partial waiver. We do not, however, 
consider the MDS fee to fall within this category.
    21. The Wireless Communications Association International, Inc. 
(``WCA'') seeks clarification that the MDS fee applies only to the 
``master'' call sign, and not to any separate response hub and booster 
call signs associated with the ``master'' call sign. Likewise, 
IPWireless, Inc. requests clarification for the MMDS stations referring 
to the ``lead'' call sign rather than response station hubs and booster 
stations. Sprint Corporation, in its reply comments, supports the 
positions of WCA and WorldCom. For FY 2001, the

[[Page 36180]]

Commission has not extended the MDS regulatory fee to response hubs and 
boosters. We reserve the right to reconsider this decision in the 
future.
    22. Winstar Communications, Inc. (``Winstar'') urges the Commission 
to reclassify Local Multipoint Distribution Service (LMDS) to place it 
into the microwave fee category with other part 101 services. We agree 
with Sprint, however, that, although LMDS and Microwave services may 
utilize the same equipment, LMDS is operationally similar to MDS and 
MMDS. This functional categorization has proven adequate for more than 
two years. Hence, we see no reason to change the classification.
c. Commercial Mobile Radio Services (CMRS)
    23. The Cellular Telecommunications & Internet Association 
(``CTIA'') and Verizon Wireless (``Verizon''), argue that the 
Commission's mandatory adjustment approach is inconsistent with the 
requirements of the statute. For the reasons set forth in paragraph 19, 
above, we reject this argument. CTIA and Verizon also argue that the 
application of the mandatory adjustment approach has discriminated 
against fast growing services such as CMRS. CTIA observes that the 
number of CMRS subscribers has increased by some 62 percent since FY 
1999, when the fee was $0.32 per subscriber. CTIA suggests that the 
CMRS fee should have declined substantially from the FY 1999 level 
because the total revenue requirement is now divided among more 
subscribers. Instead, they point out that the proposed FY 2001 fee, 
$0.30, is only three percent less than it was in FY 2000 (and six 
percent less than in FY 1999). CTIA and Verizon assert that, as a 
result, CMRS'' share of revenues has increased from eight percent to 16 
percent since FY 1999, and CMRS is effectively subsidizing other 
services. Verizon proposes that the FY 2001 fee should be no more than 
$0.18 per subscriber.
    24. The arguments of CTIA and Verizon in this regard are misplaced. 
The methodology we proposed for FY 2001 is intended to avoid the 
problem that CTIA and Verizon point out. To calculate the revenue 
requirement for FY 2001, we increased the total revenue for the various 
services proportionately without regard to the number of payment units 
in each service. We did not calculate the shortfall by taking last 
year's fees and applying them to the current number of payment units. 
CTIA correctly suggests that this rejected method would have resulted 
in fast growing services absorbing an increased share of revenues, 
since their growth would reduce the overall shortfall and the need to 
raise fees in other services. Although this may have been the result in 
the past, we do not believe it is appropriate to retroactively address 
past increases in revenues collected from CMRS. Therefore, because 
there are contrary positions on the impact of rapid growth on 
regulatory costs, we see no basis for a departure from our current 
approach until an improved cost accounting system is implemented.
    25. CTIA also claims that the Commission has ``wrongfully imposed a 
burden on CMRS licensees by increasing regulatory fees to compensate 
for a shortfall in part caused by the Commission's failure to properly 
enforce its fee schedule.'' The Commission, however, is committed to 
enforcement of the fee schedule and does not intend to use overpayments 
as a substitute for enforcement. In this regard, we anticipate that as 
licensees comply with the FCC Registration Number (FRN) requirements in 
the future, this will assist us in enforcement. Although our estimates 
of CMRS growth have taken into account the actual levels of revenue 
received, we have done this in order to ensure that our estimates are 
realistic, not to avoid enforcement.
    26. Finally, CTIA maintains that ``the Commission's FY 2001 
subscriber unit estimate is wrong and thus it has overestimated the 
CMRS mobile service industry's regulatory fee liability.'' According to 
CTIA's figures, CMRS subscribership was approximately 109 million in 
December 2000, not 90 million, as we estimated. We will revise our fee 
computation for CMRS. The recent Local Telephone Competition Report, 
Status as of December 31, 2000, Industry Analysis Division, Common 
Carrier Bureau (May 21, 2001), has presented a revised figure for CMRS 
subscribership of 101,212,054. It is appropriate for us to take this 
new information into account and revise our fee computation 
accordingly. Our past experience, however, does not support CTIA's 
claim that use of its own data is necessary to avoid overpayment by 
CMRS operators. On the contrary, use of its data has resulted in a 
shortfall in the fees collected. See Assessment and Collection of 
Regulatory Fees for Fiscal Year 1999, FCC 00-352 (October 10, 2000) at 
paragraph 7. Accordingly, we modify our estimate of CMRS subscribership 
to 101 million, resulting in a recomputed fee of $0.27.
d. UHF Television
    27. Paxson Communications Corporation (``Paxson'') asserts that 
fees for UHF television are excessive. In particular, Paxson observes 
that the fee for UHF construction permits has increased 43 percent over 
FY 2000 and is now $1,000 higher than for a VHF construction permit 
(although Congress originally set lower fees for UHF). Paxson asserts 
that increases in UHF fees are inconsistent with the more favorable 
treatment of faster growing services, which presumably receive greater 
regulatory benefits and impose greater regulatory costs. In Paxson's 
view, UHF television fees should reflect the heavy burden that 
licensees bear during the digital transition period, UHF's competitive 
handicaps, and the impact on UHF of downturns in the economy. Paxson 
asks for interim relief pending the adoption of an adequate cost 
accounting system.
    28. Although Paxson's arguments raise significant questions, they 
do not provide a reasonably definite basis to recompute fees for UHF 
television. We therefore decline to make a ``permitted'' amendment in 
FY 2001. We anticipate that development of a new cost accounting system 
will be in place for FY 2002 and, at that time, we can re-examine the 
UHF television fees, as well as other issues.
e. INTELSAT Satellites
    29. On June 1, 2001, COMSAT Corporation (COMSAT) submitted an ex 
parte filing asking the Commission not to impose the geostationary 
satellite fee on satellites owned by INTELSAT. COMSAT notes that it has 
appealed the Commission's determination that COMSAT is liable for such 
fees, and urges that the fee not be collected pending the disposition 
of this appeal. See Assessment and Collection of Regulatory Fees for 
Fiscal Year 2000, 15 FCC Rcd 14478, 14485-90, paragraphs 17-27 (2000), 
appealed sub nom. COMSAT Corp. v. FCC, No. 00-1458 (D.C. Cir. July 14, 
2000). For the reasons set for in the FY 2000 fee order, we believe 
that the fee should be assessed against COMSAT. COMSAT has not sought a 
stay of the FY 2000 fee order, either before the Commission or the 
court, and has not demonstrated the prerequisites for a stay. 
Accordingly, we have included the INTELSAT satellites in our 
computation of the geostationary satellite fee, and we expect COMSAT to 
pay its share.
f. Mandatory Use of FCC Registration Number (FRN)
    30. In our Notice of Proposed Rulemaking (NPRM), we proposed to 
require the use of an FRN by anyone subject to the regulatory fee 
program. We proposed that fee filers, those who

[[Page 36181]]

are exempt from regulatory fees, and entities paying on behalf of 
others, be required to obtain and use the FRNs assigned to them. 
Furthermore, we sought comment on how to treat submissions that did not 
contain an FRN at the time that regulatory fee payments are due. We 
proposed that in those situations, we would afford a 10-day grace 
period for the filer to obtain and provide the FRN. Finally, we invited 
comment on whether to impose a penalty on entities subject to these 
rules, but who did not provide an FRN within the grace period.
    31. We did not receive any comments on these issues. We remain 
convinced that the use of the FRN should be made mandatory for those 
who are subject to the regulatory fee program, as proposed. Because of 
unrelated implementation issues, we have decided to resolve the FRN 
issues raised here, including the effective date of the new 
requirement, in the pending FRN proceeding.\18\ Although the use of the 
FRN will not be mandatory for the FY 2001 regulatory fee cycle, we 
strongly encourage entities subject to the regulatory fee program to 
use the FRN assigned to them so that their payments (or exempt status) 
can be properly recorded and tracked. Entities not using an FRN may 
continue to experience delays in the proper recognition of their 
payments. As a result, these entities (or the entities on whose behalf 
the payment is being made) will be subject to billing notices and will 
need to provide information (e.g. cancelled check or other identifying 
information) showing that they did, in fact, pay their regulatory fees 
on a timely basis.
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    \18\ Adoption of a Mandatory FCC Registration Number, MD Docket 
No. 00-205, FCC 00-421 (released December 1, 2000).
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C. Procedures for Payment of Regulatory Fees

    32. We are retaining the procedures that we have established for 
the payment of regulatory fees. See paragraphs 32-37. Section 9(f) 
requires that we permit ``payment by installments in the case of fees 
in large amounts, and in the case of small amounts, shall require the 
payment of the fee in advance for a number of years not to exceed the 
term of the license held by the payer.'' See 47 U.S.C. 159(f)(1). 
Consistent with section 9(f), we are again establishing three 
categories of fee payments, based upon the category of service for 
which the fee payment is due and the amount of the fee to be paid. The 
fee categories are: (1) ``standard'' fees, (2) ``large'' fees, and (3) 
``small'' fees. With the exception of new payment due dates for FY 
2001, the procedures outlined in this section are not new. Procedural 
text is provided for information and purposes of clarity.
i. Annual Payments of Standard Fees
    33. As we have in the past, we are treating regulatory fee payments 
by certain licensees as ``standard fees'' which are those regulatory 
fees that are payable in full on an annual basis. Payers of standard 
fees are not required to make advance payments for their full license 
term and are not eligible for installment payments. All standard fees 
are payable in full on the date we establish for payment of fees in 
their regulatory fee category. The payment dates for each regulatory 
fee category will begin September 10, 2001 and end at close of business 
on September 21, 2001.
ii. Installment Payments for Large Fees
    34. Time constraints will preclude an opportunity for installment 
payments. Therefore, regulatees in any category of service will be 
required to submit their required fees in a single payment by the last 
day that the regulatory fee payment is due. The payment dates for each 
regulatory fee category will begin September 10, 2001 and end at close 
of business on September 21, 2001.
iii. Advance Payments of Small Fees
    35. As we have in the past, we are treating regulatory fee payments 
by certain licensees as ``small'' fees subject to advance payment 
consistent with the requirements of section 9(f)(2). Advance payments 
will be required from licensees of those services that we decided would 
be subject to advance payments in our FY 1994 Report and Order, and to 
those additional payers noted.\19\ 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 beginning date for payment of small 
fees established in this proceeding is September 10, 2001, and it will 
remain in effect until the FY 2002 fee schedule is implemented.
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    \19\ 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
    36. As we have in the past, we are establishing 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
    37. For licensees and permittees of Mass Media services, 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 must be paid by the licensee or holder of the authorization on 
the date that the fee payment is due. For licensees, permittees and 
holders of other authorizations in the Common Carrier and Cable 
Services whose fees are not based on a subscriber, unit, or circuit 
count, fees must 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. Where a license or 
authorization is transferred or assigned after October 1, 2000, the fee 
shall be paid by the licensee or holder of the authorization on the 
date that the payment is due.
    38. 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.\20\ Regulatory

[[Page 36182]]

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.
---------------------------------------------------------------------------

    \20\ 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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D. Schedule of Regulatory Fees

    39. The Commission's Schedule of Regulatory Fees for FY 2001 is 
contained in Attachment D of this Report and Order.

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

    40. We are also amending 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 are 
amending 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

    41. 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 the regulatory fees and/or any 
late penalty will be subject 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. Ordering Clause

    42. Accordingly, it is ordered that the rule changes specified 
herein be adopted. It is further ordered that the rule changes made 
herein will become effective September 9, 2001, which is no less than 
30 days from the date of publication in the Federal Register. A Final 
Regulatory Flexibility Analysis (FRFA) has been performed and is found 
in Attachment A, and it is ordered that the Federal Communications 
Commission's Consumer Information Bureau, Reference Information Center, 
send this to Small Business Administration (SBA). Finally, it is 
ordered that this proceeding is terminated.

B. Authority and Further Information

    43. This action is taken pursuant to sections 4(i) and (j), 8, 9, 
and 303(r) of the Communications Act of 1934, as amended.\21\
---------------------------------------------------------------------------

    \21\ 47 U.S.C. 154(i)-(j), 159, & 303(r).
---------------------------------------------------------------------------

    44. Further information about this proceeding may be obtained by 
contacting the FCC Consumer Center at (888) 225-5322.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Attachment A.--Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\22\ an 
Initial Regulatory Flexibility Analysis (IRFA) of the possible 
significant economic impact on small entities was incorporated in the 
Notice of Proposed Rulemaking, In the Matter of Assessment and 
Collection of Regulatory Fees for Fiscal Year 2001.\23\ The Commission 
sought written public comments on the proposals in its FY 2001 
regulatory fees NPRM, including comments on the IRFA. This present 
Final Regulatory Flexibility Analysis (FRFA) conforms to the RFA.\24\
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    \22\ 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 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is 
the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA).
    \23\ 66 FR 19681 (April 16, 2001).
    \24\ 5 U.S.C. 604.
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I. Need for, and Objectives of, the Proposed Rules

    2. This rulemaking proceeding was initiated 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 revised fees, as contained in the attached 
Schedule of Regulatory Fees, in the most efficient manner possible and 
without undue burden on the public.

II. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    3. None.

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

    4. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted.\25\ The RFA defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.''\26\ In addition, the term ``small business'' has the 
same meaning as the term ``small business concern'' under the Small 
Business Act.\27\ 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).\28\ A small organization is 
generally ``any not-for-profit enterprise which is independently owned 
and operated and is not dominant in its field.''\29\ Nationwide, as of 
1992, there were approximately 275,801 small organizations.\30\ ``Small 
governmental jurisdiction''\31\ generally means ``governments of 
cities, counties, towns, townships, villages, school districts, or 
special districts, with a population of less than 50,000.''\32\ As of 
1992, there were approximately 85,006 governmental entities in the 
United States.\33\ This number includes 38,978 counties, cities, and 
towns; of these, 37,566, or 96%, have populations of fewer than 
50,000.\34\ The Census Bureau estimates that this ratio is 
approximately accurate for all governmental entities. Thus, of the 
85,006 governmental entities, we estimate that 81,600 (96%) are small 
entities. Below, we further describe and estimate the number of small 
entity

[[Page 36183]]

licensees and regulatees that may be affected by these rules.
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    \25\ 5 U.S.C. 603(b)(3).
    \26\ 5 U.S.C. 601(6).
    \27\ 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).
    \28\ Small Business Act, 15 U.S.C. 632 (1996).
    \29\ U.S.C. 601(4).
    \30\ 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).
    \31\ 47 CFR 1.1162.
    \32\ 5 U.S.C. 601(5).
    \33\ U.S. Dept. of Commerce, Bureau of Census, ``1992 Census of 
Governments.''
    \34\ 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.\35\ 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.\36\
---------------------------------------------------------------------------

    \35\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) codes 51321 and 51322.
    \36\ 1992 Economic Census Industry and Enterprise Receipts Size 
Report, Table 2D, NAICS codes 51321 and 51322 (U.S. Bureau of the 
Census data under contract to the Office of Advocacy of the U.S. 
Small Business Administration).
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    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.\37\ 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.\38\ 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.
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    \37\ 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).
    \38\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 
1996 (based on figures for Dec. 30, 1995).
---------------------------------------------------------------------------

    7. The Communications Act of 1934, as amended, also contains a 
definition of a small cable system operator, which is ``a cable 
operator that, directly or through an affiliate, serves in the 
aggregate fewer than 1 percent of all subscribers in the United States 
and is not affiliated with any entity or entities whose gross annual 
revenues in the aggregate exceed $250,000,000.''\39\ The Commission has 
determined that there are 67,700,000 subscribers in the United 
States.\40\ 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.\41\ Based on 
available data, we estimate that the number of cable operators serving 
677,000 subscribers or less totals 1,450.\42\ We do not request nor 
collect information on whether cable system operators are affiliated 
with entities whose gross annual revenues exceed $250,000,000,\43\ and 
therefore are unable at this time to estimate more accurately the 
number of cable system operators that would qualify as small cable 
operators under the definition in the Communications Act.
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    \39\ 47 U.S.C. 543(m)(2).
    \40\ 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.
    \41\ Id. 47 CFR 76.1403(b).
    \42\ FCC Announces New Subscriber Count for the Definition of 
Small Cable Operator, Public Notice, DA-01-0158 (released January 
24, 2001).
    \43\ 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).
---------------------------------------------------------------------------

    8. Other Pay Services. Other pay television services are also 
classified under the North American Industry Classification System 
(NAICS) codes 51321 and 51322, which includes cable systems operators, 
closed circuit television services, direct broadcast satellite services 
(DBS),\44\ multipoint distribution systems (MDS),\45\ satellite master 
antenna systems (SMATV), and subscription television services.
---------------------------------------------------------------------------

    \44\ Direct Broadcast Services (DBS) are discussed with the 
international services, infra.
    \45\ 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, which encompasses data compiled from FCC Form 499-A 
Telecommunications Reporting Worksheets.\46\ According to data in the 
most recent report, there are 4,822 interstate service providers.\47\ 
These providers include, inter alia, incumbent local exchange carriers, 
competitive access providers (CAPS)/competitive local exchange carriers 
(CLECs), local resellers and other local exchange carriers, 
interexchange carriers, operator service providers, prepaid calling 
card providers, toll resellers, and other toll carriers.
---------------------------------------------------------------------------

    \46\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Carrier Locator: Interstate Service Providers, Table 1 (October 
2000) (Carrier Locator).
    \47\ FCC, Carrier Locator at Table 1.
---------------------------------------------------------------------------

    10. We have included small incumbent local exchange carriers (LECs) 
\48\ 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.'' \49\ 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.\50\ 
We have therefore included small incumbent LECs in this RFA analysis, 
although we emphasize that this RFA action has no effect on Commission 
analyses and determinations in other, non-RFA contexts.
---------------------------------------------------------------------------

    \48\ See 47 U.S.C 251(h) (defining ``incumbent local exchange 
carrier'').
    \49\ 5 U.S.C. 601(3).
    \50\ 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).
---------------------------------------------------------------------------

    11. Total Number of Telephone Companies Affected. The Census Bureau 
reports that, at the end of 1992, there were 3,497 firms engaged in 
providing telephone services, as defined therein, for at least one 
year.\51\ This number contains a variety of different categories of 
carriers, including local exchange carriers, interexchange carriers, 
competitive access providers, operator service providers, pay telephone 
operators, and resellers. It seems certain that some of these 3,497 
telephone service firms may not qualify as small entities or small 
incumbent LECs because they are not ``independently owned and 
operated.'' \52\ It seems reasonable to conclude that fewer than 3,497 
telephone service firms are small entity telephone service firms or 
small

[[Page 36184]]

incumbent LECs that may be affected by these revised rules.
---------------------------------------------------------------------------

    \51\ 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).
    \52\ 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.\53\ According to the SBA's 
definition, a small business telephone company other than a 
radiotelephone (wireless) company is one employing no more than 1,500 
persons.\54\ All but 26 of the 2,321 non-radiotelephone (wireless) 
companies listed by the Census Bureau were reported to have fewer than 
1,000 employees. Even if all 26 of the remaining companies had more 
than 1,500 employees, there would still be 2,295 non-radiotelephone 
(wireless) companies that might qualify as small entities or small 
incumbent LECs. Although it seems certain that some of these carriers 
are not independently owned and operated, we are unable at this time to 
estimate with greater precision the number of wireline carriers and 
service providers that would qualify as small business concerns under 
SBA's definition. Therefore, we estimate that fewer than 2,295 small 
telephone communications companies other than radiotelephone (wireless) 
companies are small entities or small incumbent LECs that may be 
affected by these revised rules.
---------------------------------------------------------------------------

    \53\ 1992 Census, supra, at Firm Size 1-123.
    \54\ 13 CFR 121.201, NAICS codes 51331, 51333, and 51334.
---------------------------------------------------------------------------

    13. Local Exchange Carriers (LECS), Competitive Access Providers 
(CAPs), Interexchange Carriers (IXCs), Operator Service Providers 
(OSPs), Payphone Providers, and Resellers. Neither the Commission nor 
the SBA has developed a definition for small LECs, competitive access 
providers (CAPs), interexchange carriers (IXCs), operator service 
providers (OSPs), payphone providers, or resellers. The closest 
applicable definition for these carrier-types under SBA rules is for 
telephone communications companies other than radiotelephone (wireless) 
companies.\55\ 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 TRS.\56\ According 
to our most recent data, there are 1,395 incumbent and other LECs, 349 
CAPs and competitive local exchange carriers (CLECs), 204 IXCs, 21 
OSPs, 758 payphone providers, 21 prepaid calling card providers, 17 
other toll carriers, and 541 local and toll resellers.\57\ 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 incumbent and other LECs, 349 CAPs/CLECs, 204 IXCs, 21 
OSPs, 758 payphone providers, and 541 local and toll resellers that may 
be affected by these revised rules.
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    \55\ 13 CFR 121.201, NAICS codes 51331, 51333, and 51334.
    \56\ See Carrier Locator at Table 1.
    \57\ Carrier Locator at Table 1. The total for resellers 
includes both toll resellers and local resellers.
---------------------------------------------------------------------------

International Services

    14. The Commission has not developed a definition of small entities 
applicable to licensees in the international services. Therefore, the 
applicable definition of small entity is generally the definition under 
the SBA rules applicable to Communications Services, Not Elsewhere 
Classified (NEC).\58\ This definition provides that a small entity is 
expressed as one with $11.0 million or less in annual receipts.\59\ 
According to the Census Bureau, there were a total of 848 
communications services providers, NEC, in operation in 1992, and a 
total of 775 had annual receipts of less than $10.0 million.\60\ The 
Census report does not provide more precise data.
---------------------------------------------------------------------------

    \58\ An exception is the Direct Broadcast Satellite (DBS) 
Service, infra.
    \59\ 13 CFR 121.201, NAICS codes 48531, 513322, 51334, and 
51339.
    \60\ 1992 Economic Census Industry and Enterprise Receipts Size 
Report, Table 2D, NAICS codes 48531, 513322, 51334, and 513391 (U.S. 
Bureau of the Census data under contract to the Office of Advocacy 
of the U.S. Small Business Administration).
---------------------------------------------------------------------------

    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 small satellite transmit/receive earth 
stations that would constitute a small business under the SBA 
definition.
    19. Fixed Satellite Very Small Aperture Terminal (VSAT) Systems. 
These stations operate on a primary basis, and frequency coordination 
with terrestrial microwave systems is not required. Thus, a single 
``blanket'' application may be filed for a specified number of small 
antennas and one or more hub stations. There are 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

[[Page 36185]]

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.'' \61\ This definition provides that a 
small entity is one with $11.0 million or less in annual receipts.\62\ 
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.
---------------------------------------------------------------------------

    \61\ 13 CFR 121.201, NAICS codes 51321 and 51322.
    \62\ 13 CFR 121.201, NAICS codes 51321 and 51322.
---------------------------------------------------------------------------

Mass Media Services

    25. Commercial Radio and Television Services. The proposed rules 
and policies will apply to television broadcasting licensees and radio 
broadcasting licensees.\63\ The SBA defines a television broadcasting 
station that has $10.5 million or less in annual receipts as a small 
business.\64\ Television broadcasting stations consist of 
establishments primarily engaged in broadcasting visual programs by 
television to the public, except cable and other pay television 
services.\65\ Included in this industry are commercial, religious, 
educational, and other television stations.\66\ Also included are 
establishments primarily engaged in television broadcasting and which 
produce taped television program materials.\67\ Separate establishments 
primarily engaged in producing taped television program materials are 
classified under another NAICS number.\68\ There were 1,509 television 
stations operating in the nation in 1992.\69\ 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.\70\ For 1992,\71\ the number of television stations that produced 
less than $10.0 million in revenue was 1,155 establishments.\72\ Only 
commercial stations are subject to regulatory fees.
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    \63\ 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).
    \64\ 13 CFR 121.201, NAICS code 51312.
    \65\ 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).
    \66\ Id. see Executive Office of the President, Office of 
Management and Budget, Standard Industrial Classification Manual 
(1987), at 283, which describes ``Television Broadcasting Stations'' 
(SIC code 4833, now NAICS code 51312) as:
    Establishments primarily engaged in broadcasting visual programs 
by television to the public, except cable and other pay television 
services. Included in this industry are commercial, religious, 
educational and other television stations. Also included here are 
establishments primarily engaged in television broadcasting and 
which produce taped television program materials.
    \67\ 1992 Census, Series UC92-S-1, at Appendix A-9.
    \68\ Id., NAICS code 51211 (Motion Picture and Video Tape 
Production); NAICS 51229 (Theatrical Producers and Miscellaneous 
Theatrical Services) (producers of live radio and television 
programs).
    \69\ FCC News Release No. 31327 (January 13, 1993); 1992 Census, 
Series UC92-S-1, at Appendix A-9.
    \70\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2000.''
    \71\ 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.
    \72\ 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 SBA defines a radio broadcasting station that 
has $5 million or less in annual receipts as a small business.\73\ A 
radio broadcasting station is an establishment primarily engaged in 
broadcasting aural programs by radio to the public.\74\ Included in 
this industry are commercial, religious, educational, and other radio 
stations.\75\ Radio broadcasting stations, which primarily are engaged 
in radio broadcasting and which produce radio program materials, are 
similarly included.\76\ However, radio stations which are separate 
establishments and are primarily engaged in producing radio program 
material are classified under another NAICS number.\77\ 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.\78\ 
Official Commission records indicate that a total of 11,334 individual 
radio stations were operating in 1992.\79\ As of September 30, 2000, 
Commission records indicate that a total of 12,717 radio stations were 
operating, of which 8,032 were FM stations.\80\ Only commercial 
stations are subject to regulatory fees.
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    \73\ 13 CFR 121.201, NAICS codes 513111 and 513112.
    \74\ 1992 Census, Series UC92-S-1, at Appendix A-9.
    \75\ Id.
    \76\ Id.
    \77\ Id.
    \78\ 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.
    \79\ FCC News Release, No. 31327 (Jan. 13, 1993).
    \80\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2000.''
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    27. The rules may affect an estimated total of 1,663 television 
stations, approximately 1,281 of which are considered small 
businesses.\81\ The revised rules will also affect an estimated total 
of 12,717 radio stations, approximately 12,209 of which are small 
businesses.\82\ 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).\83\ Given the nature of this service, we will presume 
that all LPTV licensees qualify as small entities under the SBA 
definition.
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    \81\ We use an estimated figure of 77 percent (from 1992) of TV 
stations operating at less than $10 million and apply it to the 2000 
total of 1,663 TV stations to arrive at 1,281 stations categorized 
as small businesses.
    \82\ 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.
    \83\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2000.''
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    28. Auxiliary, Special Broadcast and Other Program Distribution 
Services. This service involves a variety of transmitters, generally 
used to relay broadcast programming to the public (through translator 
and booster stations) or within the program distribution chain (from a 
remote news gathering unit back to the station). The Commission has not 
developed a definition of small entities applicable to broadcast 
auxiliary licensees. The applicable definitions of small entities are 
those, noted previously, under the SBA rules applicable to radio 
broadcasting stations and television broadcasting stations.\84\
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    \84\ 13 CFR 121.201, NAICS codes 513111 and 513112.
---------------------------------------------------------------------------

    29. The Commission estimates that there are approximately 2,700 
translators and boosters. The Commission does not collect financial 
information on any broadcast facility, and the Department of Commerce 
does

[[Page 36186]]

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.\85\
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    \85\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    30. Multipoint Distribution Service (MDS). This service has 
historically provided primarily point-to-multipoint, one-way video 
services to subscribers.\86\ The Commission recently amended its rules 
to allow MDS licensees to provide a wide range of high-speed, two-way 
services to a variety of users.\87\ 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.\88\ The Commission established this small 
business definition in the context of this particular service and with 
the approval of the SBA.\89\ The MDS auction resulted in 67 successful 
bidders obtaining licensing opportunities for 493 Basic Trading Areas 
(BTAs).\90\ Of the 67 auction winners, 61 met the definition of a small 
business. At this time, we estimate that of the 61 small business MDS 
auction winners, 48 remain small business licensees. In addition to the 
48 small businesses that hold BTA authorizations, there are 
approximately 392 incumbent MDS licensees that are considered small 
entities.\91\ After adding the number of small business auction 
licensees to the number of incumbent licensees not already counted, we 
find that there are currently approximately 440 MDS licensees that are 
defined as small businesses under either the SBA or the Commission's 
rules. Some of those 440 small business licensees may be affected by 
the proposals in this Order.
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    \86\ For purposes of this item, MDS includes both the single 
channel Multipoint Distribution Service (MDS) includes Local 
Multipoint Distribution Service (LMDS), and the Multichannel 
Multipoint Distribution Service (MMDS).
    \87\ Amendment of Parts 21 and 74 to Enable Multipoint 
Distribution Service and Instructional Television Fixed Service 
Licensees to Engage in Fixed Two-Way Transmissions, 13 FCC Rcd 19112 
(1998), recon., 14 FCC Rcd 12764 (1999), further recon., 15 FCC Rcd 
14566 (2000).
    \88\ 47 CFR 21.961 and 1.2110.
    \89\ Amendment of Parts 21 and 74 of the Commission's Rules with 
Regard to Filing Procedures in the Multipoint Distribution Service 
and in the Instructional Television Fixed Service and Implementation 
of Section 309(j) of the Communications Act--Competitive Bidding, 10 
FCC Rcd 9589, 9670 (1995), 60 FR 36524 (July 17, 1995).
    \90\ Basic Trading Areas (BTAs) were designed by Rand McNally 
and are the geographic areas by which MDS was auctioned and 
authorized. See id. At 9608.
    \91\ 47 U.S.C. 309(j). (Hundreds of stations were licensed to 
incumbent MDS licensees prior to implementation of Section 309(j) of 
the Communications Act of 1934, 47 U.S.C. Section 309(j). For these 
pre-auction licenses, the applicable standard is SBA's small 
business size standard for ``other telecommunications'' (annual 
receipts of $11 million or less). See 13 CFR 121.201.
---------------------------------------------------------------------------

Wireless and Commercial Mobile Services

    31. Cellular Licensees. Neither the Commission nor the SBA has 
developed a definition of small entities specific to cellular 
licensees. Therefore, the applicable definition of small entity is the 
definition under the SBA rules applicable to radiotelephone (wireless) 
companies. This provides that a small entity is a radiotelephone 
(wireless) company employing no more than 1,500 persons.\92\ According 
to the Census Bureau, only twelve radiotelephone (wireless) firms from 
a total of 1,178 such firms which operated during 1992 had 1,000 or 
more employees.\93\ 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 Reporting 
Worksheets data, 806 wireless telephony providers reported that they 
were engaged in the provision of either cellular service, Personal 
Communications Service (PCS) services, and SMR telephony carriers, 
which are placed together in the data.\94\ 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 806 small 
wireless service providers that may be affected by these revised rules.
---------------------------------------------------------------------------

    \92\ 13 CFR 121.201, NAICS code 513322.
    \93\ 1992 Census, Series UC92-S-1, at Table 5, NAICS code 
513322.
    \94\ Trends in Telephone Service, Table 16.3 (December 2000).
---------------------------------------------------------------------------

    32. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. Phase I licensing was conducted 
by lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized 
to operate in the 220 MHz band. The Commission has not developed a 
definition of small entities specifically applicable to such incumbent 
220 MHz Phase I licensees. To estimate the number of such licensees 
that are small businesses, we apply the definition under the SBA rules 
applicable to Radiotelephone (wireless) Communications companies. This 
definition provides that a small entity is a radiotelephone (wireless) 
company employing no more than 1,500 persons.\95\ According to the 
Census Bureau, only 12 radiotelephone (wireless) firms out of a total 
of 1,178 such firms which operated during 1992 had 1,000 or more 
employees.\96\ If this general ratio continues in 2001 in the context 
of Phase I 220 MHz licensees, we estimate that nearly all such 
licensees are small businesses under the SBA's definition.
---------------------------------------------------------------------------

    \95\ 13 CFR 121.201, NAICS code 513322.
    \96\ U.S. Bureau of the Census, U.S. Department of Commerce, 
1992 Census of Transportation, Communications, and Utilities, UC92-
S-1, Subject Series, Establishment and Firm Size, Table 5, 
Employment Size of Firms; 1992, NAICS codes 513321, 513322, and 
51333.
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    33. 220 MHz Radio Service--Phase II Licensees. The Phase II 220 MHz 
service is a new service, and is subject to spectrum auctions. In the 
220 MHz Third Report and Order, 62 FR 16004, April 3, 1997, we adopted 
criteria for defining small and very small businesses for purposes of 
determining their eligibility for special provisions such as bidding 
credits and installment payments.\97\ We have defined a small business 
as an entity that, together with its affiliates and controlling 
principals, has average gross revenues not exceeding $15 million for 
the preceding three years. A very small business is defined as an 
entity that, together with its affiliates and controlling principals, 
has average gross revenues that do not exceed $3 million for the 
preceding three years.\98\ The SBA has approved these definitions.\99\ 
Auctions of Phase II licenses commenced on September 15, 1998, and 
closed on October 22,

[[Page 36187]]

1998.\100\ In the first auction, 908 licenses were auctioned in three 
different-sized geographic areas: three nationwide licenses, 30 
Regional Economic Area Group (EAG) Licenses, and 875 Economic Area (EA) 
Licenses. Of the 908 licenses auctioned, 693 were sold.\101\ Thirty-
nine small businesses won licenses in the first 220 MHz auction. The 
second auction included 225 licenses: 216 EA licenses and 9 EAG 
licenses. Fourteen companies claiming small business status won 158 
licenses.\102\
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    \97\ 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-70, 
at paragraphs 291-295 (1997).
    \98\ 220 MHz Third Report and Order, 12 FCC Rcd at 11068-69, 
paragraph 291.
    \99\ See Letter to D. Phython, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(January 6, 1998).
    \100\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Public Notice, 14 FCC Rcd 605 (1998).
    \101\ Public Notice, ``FCC Announces It is Prepared to Grant 654 
Phase II 220 MHz Licenses After Final Payment is Made,'' Public 
Notice, 14 FCC Rcd 1085 (1999).
    \102\ ``Phase II 220 MHz Service Spectrum Auction Closes'', 
Public Notice, 14 FCC Rcd 11218 (1999).
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    34. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order, 
we adopted criteria for defining small businesses and very small 
businesses for purposes of determining their eligibility for special 
provisions such as bidding credits and installment payments. \103\ 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.\104\ Of the 104 licenses 
auctioned, 96 licenses were sold to 9 bidders. Five of these bidders 
were small businesses that won a total of 26 licenses. A second auction 
of 700 MHz Guard Band licenses commenced on February 13, 2001 and 
closed on February 21, 2001. All eight of the licenses auctioned were 
sold to three bidders. One of these bidders was a small business that 
won a total of two licenses.\105\
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    \103\ 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).
    \104\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Report No. WT 98-36 (Wireless Telecommunications Bureau, 
October 23, 1998).
    \105\ ``700 MHz Guard Bands Auction Closes,'' Public Notice, DA 
01-478 (rel. February 22, 2001).
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    35. Private and Common Carrier Paging. In the Paging Third Report 
and Order, we adopted criteria for defining small businesses and very 
small businesses for purposes of determining their eligibility for 
special provisions such as bidding credits and installment 
payments.\106\ 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.\107\ The SBA has approved these definitions.\108\ An 
auction of Metropolitan Economic Area licenses commenced on February 
24, 2000, and closed on March 2, 2000.\109\ 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.\110\ 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 revised rules. We estimate that the majority of 
private and common carrier paging providers would qualify as small 
entities under the SBA definition.
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    \106\ 220 MHz Third Report and Order, 62 FR 16004 (April 3, 
1997), at paragraphs 291-295.
    \107\ 700 MHz Guard Band Auction Closes,'' Public Notice, 15 FCC 
Rcd 18026 (2000).
    \108\ ``Revision of Part 22 and Part 90 of the Commission's 
Rules to Facilitate Future Development of Paging Systems,'' 
Memorandum Opinion and Order on Reconsideration and Third Report and 
Order, 14 FCC Rcd 10030, at paragraph 98-107 (1999).
    \109\ ``Revision of Part 22 and Part 90 of the Commission's 
Rules to Facilitate Future Development of Paging Systems,'' 
Memorandum Opinion and Order on Reconsideration and Third Report and 
Order, 14 FCC Rcd 10030, at paragraph 98 (1999).
    \110\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
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    36. Broadband Personal Communications Service (PCS). The broadband 
PCS spectrum is divided into six frequencies designated A through F, 
and the Commission has held auctions for each block. The Commission 
defined ``small entity'' for Blocks C and F as an entity that has 
average gross revenues of less than $40 million in the three previous 
calendar years.\111\ For Block F, an additional classification for 
``very small business'' was added and is defined as an entity that, 
together with its affiliates, has average gross revenues of not more 
than $15 million for the preceding three calendar years.\112\ These 
regulations defining ``small entity'' in the context of broadband PCS 
auctions have been approved by the SBA.\113\ 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.\114\ On March 23, 1999, the Commission re-auctioned 347 C, D, E, 
and F Block licenses; there were 48 small business winning bidders. An 
additional classification for ``very small business'' was added for C 
Block and is defined as ``an entity that together with its affiliates 
and persons or entities that hold interest in such entity and their 
affiliates, has average annual gross revenues that are not more than 
forty million dollars for the proceding three years.\115\ The SBA 
approved this definition.'' \116\ 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

[[Page 36188]]

auction, 29 qualified as small or very small businesses.
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    \111\ See generally ``929 and 931 MHz Paging Auction Closes,'' 
Public Notice, 15 FCC Rcd 4858 (2000).
    \112\ 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).
    \113\ 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).
    \114\ FCC News, Broadband PCS, D, E and F Block Auction Closes, 
No. 71744 (released January 14, 1997).
    \115\ See Amendment of the Commission's Rules Regarding 
Installment Payment Financing for Personal Communications Services 
(PCS) Licenses, Fourth Report and Order, 13 FCC Rcd 15743 at 15767-
68, paragraphs 45-46 (1998).
    \116\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
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    37. Narrowband PCS. To date, two auctions of narrowband PCs 
licenses have been conducted. Through these auctions, the Commission 
has awarded a total of 41 licenses, out of which 11 were obtained by 
small businesses. For purposes of the two auctions that have already 
been held, small businesses were defined as entities with average gross 
revenues for the prior three calendar years of $40 million or less. To 
ensure meaningful participation of small business entities in the 
auctions, the Commission adopted a two-tiered definition of small 
businesses in the Narrowband PCS Second Report and Order.\117\ 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.\118\ In the future, 
the Commission will auction 459 licenses to serve Metropolitan Trading 
Areas (MTAs) and 408 response channel licenses. There is also one 
megahertz of narrowband PCS spectrum that has been held in reserve and 
that the Commission has not yet decided to release for licensing. The 
Commission cannot predict accurately the number of licenses that will 
be awarded to small entities in future auctions. However, four of the 
16 winning bidders in the two previous narrowband PCS auctions were 
small businesses, as that term was defined under the Commission's 
Rules. The Commission assumes, for purposes of this FRFA, 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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    \117\ 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).
    \118\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
---------------------------------------------------------------------------

    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 (wireless) 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, NAICS codes 513321, 513322, and 51333.
---------------------------------------------------------------------------

    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 (wireless) 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, NAICS codes 513321, 513322, and 51333.
---------------------------------------------------------------------------

    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.\125\ 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.\126\ 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.\127\ An auction of 800 MHz SMR geographic area 
licenses for the General Category channels began on August 16, 2000 and 
was completed on September 1, 2000. Of the 1,050 licenses offered in 
that auction, 1,030 licenses were sold. Eleven winning bidders for 
licenses for the General Category channels in the 800 MHz SMR band 
qualified as small business under the $15 million size standard. In an 
auction completed on December 5, 2000, a total of 2,800 Economic Area 
licenses in the lower 80 channels of the 800 MHz SMR service were sold. 
Of the 22 winning bidders, 19 claimed small business status. Thus, 40 
winning bidders for geographic licenses in the 800 MHz SMR band 
qualified as small businesses. In addition, there are numerous 
incumbent site-by-site SMR licenses on the 800 and 900 MHz band.
---------------------------------------------------------------------------

    \124\ 47 CFR 90.814(b)(1).
    \125\ See Letter to Thomas J. Sugrue, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(August 10, 1999).
    \126\ See Letter to Daniel B. Phython, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(October 27, 1997).
    \127\ Id.
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    41. These revised fees in the Report and Order apply to SMR 
providers in the 800 MHz and 900 MHz bands that either hold geographic 
area licenses or have obtained extended implementation authorizations. 
We do not know how many firms provide 800 MHz or 900 MHz geographic 
area SMR service pursuant to extended implementation authorizations, 
nor how many of these providers have annual revenues of no more than 
$15 million. One firm has over $15 million in revenues. We assume, for 
purposes of this FRFA, that all of the remaining existing extended 
implementation authorizations are held by small entities, as that term 
is defined by the SBA.
    42. Private Land Mobile Radio (PLMR). PLMR systems serve an 
essential role in a range of industrial, business, land transportation, 
and public safety activities. These radios are used by companies of all 
sizes operating in all U.S. business categories. The Commission has not 
developed a definition of small entity specifically applicable to PLMR 
licensees due to the vast array of PLMR users. For the purpose of 
determining whether a licensee is a small business as defined by the 
SBA, each licensee would need to be evaluated within its own business 
area.
    43. The Commission is unable at this time to estimate the number of 
small businesses which could be impacted by the rules. The Commission's 
1994 Annual Report on PLMR \128\ indicates that at the end of fiscal 
year 1994 there were 1,087,267 licensees operating 12,481,989 
transmitters in the PLMR bands below 512 MHz. Because any entity 
engaged in a commercial activity is eligible to hold a PLMR license, 
the revised rules in this context could

[[Page 36189]]

potentially impact every small business in the United States.
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    \128\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at paragraph 116.
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    44. Amateur Radio Service. We estimate that 8,000 applicants will 
apply for vanity call signs in FY 2001. These licensees are presumed to 
be individuals, and therefore not small entities. All other amateur 
licensees are exempt from payment of regulatory fees.
    45. Aviation and Marine Radio Service. Small businesses in the 
aviation and marine radio services use a marine very high frequency 
(VHF) radio, any type of emergency position indicating radio beacon 
(EPIRB) and/or radar, a VHF aircraft radio, and/or any type of 
emergency locator transmitter (ELT). The Commission has not developed a 
definition of small entities specifically applicable to these small 
businesses. The applicable definition of small entity is the definition 
under the SBA rules for radiotelephone (wireless) communications.\129\
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    \129\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
---------------------------------------------------------------------------

    46. Most applicants for recreational licenses are individuals. 
Approximately 581,000 ship station licensees and 131,000 aircraft 
station licensees operate domestically and are not subject to the radio 
carriage requirements of any statute or treaty. For purposes of our 
evaluations and conclusions in this FRFA, we estimate that there may be 
at least 712,000 potential licensees which are individuals or are small 
entities, as that term is defined by the SBA. We estimate that only 
16,800 will be subject to FY 2001 regulatory fees.
    47. Fixed Microwave Services. Microwave services include common 
carrier,\130\ private-operational fixed,\131\ and broadcast auxiliary 
radio services.\132\ 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 FRFA, we will use the SBA's 
definition applicable to radiotelephone (wireless) companies--i.e., an 
entity with no more than 1,500 persons.\133\ We estimate that all of 
the Fixed Microwave licensees (excluding broadcast auxiliary licensees) 
would qualify as small entities under the SBA definition for 
radiotelephone (wireless) companies.
---------------------------------------------------------------------------

    \130\ 47 CFR 101 et seq. (formerly, part 21 of the Commission's 
Rules).
    \131\ 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.
    \132\ 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.
    \133\ 13 CFR 121.201, NAICS codes 513321, 513322, 51333.
---------------------------------------------------------------------------

    48. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, highway 
maintenance, and emergency medical services.\134\ There are a total of 
approximately 127,540 licensees within these services. Governmental 
entities \135\ as well as private businesses comprise the licensees for 
these services. As indicated supra in paragraph four of this FRFA, all 
governmental entities with populations of less than 50,000 fall within 
the definition of a small entity.\136\ All licensees in this category 
are exempt from the payment of regulatory fees.
---------------------------------------------------------------------------

    \134\ 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.
    \135\ 47 CFR 1.1162.
    \136\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

    49. 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).\137\ 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.
---------------------------------------------------------------------------

    \137\ Licensees in the Citizens Bank (CB) Radio Services, 
General Mobile Radio Service (GMRS), Radio Control (R/C) Radio 
Service and Familly Radio Service (FRS) are governed by Subpart D, 
Subpart A, Subpart C, and Subpart B, respectively, of part 95 of the 
Commission 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
---------------------------------------------------------------------------

    50. Offshore Radiotelephone Service. This service operates on 
several UHF TV broadcast channels that are not used for TV broadcasting 
in the coastal areas of states bordering the Gulf of Mexico.\138\ There 
are presently approximately 55 licensees in this service. We are unable 
to estimate at this time the number of licensees that would qualify as 
small under the SBA's definition for radiotelephone (wireless) 
communications.
---------------------------------------------------------------------------

    \138\ This service is governed by subpart 1 of part 22 of the 
Commission's Rules. See 47 CFR 22.1001 through 22.1037.
---------------------------------------------------------------------------

    51. 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 SBA has approved 
these definitions.\139\ The FCC 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.
---------------------------------------------------------------------------

    \139\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2. 
1998).
---------------------------------------------------------------------------

    52. 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.\140\ An additional 
classification for ``very

[[Page 36190]]

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.\141\ 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.
---------------------------------------------------------------------------

    \140\ 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).
    \141\ Id.
---------------------------------------------------------------------------

    53. 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.\142\ An 
additional classification for ``very small business'' was added and is 
defined as an entity that, together with its affiliates, has average 
gross revenues of not more than $15 million for the preceding three 
calendar years.\143\ These regulations defining ``small entity'' in the 
context of LMDS auctions have been approved by the SBA.\144\ 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.
---------------------------------------------------------------------------

    \142\ See Local Multipoint Distribution Service, Second Report 
and Order, 62 FR 23148, April 29, 1997.
    \143\ Id.
    \144\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(January 6, 1998).
---------------------------------------------------------------------------

    54. 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.\145\ 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.\146\ 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 its affiliates, has average 
annual gross revenues not to exceed $3 million for the preceding three 
years.\147\ 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 FRFA that in future auctions, all of the 
licenses may be awarded to small businesses, which would be affected by 
these revised rules.
---------------------------------------------------------------------------

    \145\ 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).
    \146\ 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).
    \147\ Amendment of Part 95 of the Commission's Rules to Provide 
Regulatory Flexibility in the 218-219 MHz Service, Report and Order 
and Memorandum Opinion and Order, 64 FR 59656 (1999).
---------------------------------------------------------------------------

IV. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

    55. 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.\148\ 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 responsible for an 
entity's business records.
---------------------------------------------------------------------------

    \148\ 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.
---------------------------------------------------------------------------

    56. 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.
    57. 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.\149\ Until payment is received, no new or pending 
applications will be processed, and existing authorizations may be 
subject to rescission.\150\ 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

[[Page 36191]]

entity fails to pay a delinquent debt owed to any federal agency.\151\ 
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.\152\
---------------------------------------------------------------------------

    \149\ 47 U.S.C. 1.1164(a).
    \150\ 47 U.S.C. 1.1164(c).
    \151\ Public Law 104-134, 110 Stat. 1321 (1996).
    \152\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

    58. 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.\153\ 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.
---------------------------------------------------------------------------

    \153\ 47 U.S.C. 1.1166.
---------------------------------------------------------------------------

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

    59. 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 FRFA, 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 have sought 
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.
    60. 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) 2001.\154\ As noted, we have 
also previously sought comment on the proposed methodology for 
implementing these statutory requirements and any other potential 
impact of these proposals on small entities.
---------------------------------------------------------------------------

    \154\ 47 U.S.C.159(a).
---------------------------------------------------------------------------

    61. 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 and would have a 
disproportionate impact on smaller entities. The methodology we are 
adopting in this  Report and Order minimizes this impact by limiting 
the amount of increase and shifting costs to other services which, for 
the most part, are larger entities.
    62. Several categories of licensees and regulatees are exempt from 
payment of regulatory fees. See, e.g., footnote 148, supra, and 
Attachment F of the Report and Order, infra.
    Report to Small Business Administration: The Commission will send a 
copy of this Report and Order, including a copy of the FRFA to the 
Chief Counsel for Advocacy of the Small Business Administration. The 
Report and Order and FRFA (or summaries thereof) will also be published 
in the Federal Register.
    Report to Congress: The Commission will send a copy of this Final 
Regulatory Flexibility Analysis, along with this Report and Order, in a 
report to Congress pursuant to the Congressional Review Act, 5 U.S.C. 
801(a)(1)(A).

BILLING CODE 6712-01-P

[[Page 36192]]

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[[Page 36193]]


[GRAPHIC] [TIFF OMITTED] TR11JY01.007

BILLING CODE 6712-01-C

[[Page 36194]]



           Attachment D.--FY 2001 Schedule of Regulatory Fees
------------------------------------------------------------------------
                                                             Annual
                     Fee category                        regulatory fee
                                                           (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)..         5
Microwave (per license) (47 CFR part 101).............         5
218-219 MHz (Formerly Interactive Video Data Service)         10
 (per license) (47 CFR part 95).......................
Marine (Ship) (per station) (47 CFR part 80)..........        10
Marine (Coast) (per license) (47 CFR part 80).........         5
General Mobile Radio Service (per license) (47 CFR             5
 part 95).............................................
Rural Radio (47 CFR part 22) (previously listed under          5
 the Land Mobile category)............................
PLMRS (Shared Use) (per license) (47 CFR part 90).....         5
Aviation (Aircraft) (per station) (47 CFR part 87)....         5
Aviation (Ground) (per license) (47 CFR part 87)......        10
Amateur Vanity Call Signs (per call sign) (47 CFR part         1.20
 97)..................................................
CMRS Mobile Services (per unit) (47 CFR parts 20, 22,           .27
 24, 27, 80 and 90)...................................
CMRS Messaging Services (per unit) (47 CFR parts 20,            .05
 22, 24 and 90).......................................
Multipoint Distribution Services (Includes MMDS &            450
 LMDS) (per call sign) (47 CFR parts 21 and 101)......
AM Radio Construction Permits.........................       280
FM Radio Construction Permits.........................       925
TV (47 CFR part 73) VHF Commercial
  Markets 1-10........................................    45,100
  Markets 11-25.......................................    32,825
  Markets 26-50.......................................    21,325
  Markets 51-100......................................    13,750
  Remaining Markets...................................     3,275
  Construction Permits................................     3,075
TV (47 CFR part 73) UHF Commercial
  Markets 1-10........................................    15,150
  Markets 11-25.......................................    12,300
  Markets 26-50.......................................     7,075
  Markets 51-100......................................     4,075
  Remaining Markets...................................     1,150
  Construction Permits................................     4,000
Satellite Television Stations (All Markets)...........       740
Construction Permits--Satellite Television Stations...       480
Low Power TV, TV/FM Translators & Boosters (47 CFR           305
 part 74).............................................
Broadcast Auxiliary (47 CFR part 74)..................        10
CARS (47 CFR part 78).................................        55
Cable Television Systems (per subscriber) (47 CFR part          .49
 76)..................................................
Interstate Telephone Service Providers (per revenue             .00132
 dollar)..............................................
Earth Stations (47 CFR part 25).......................       180
Space Stations (per operational station in                98,125
 geostationary orbit) (47 CFR part 25) also includes
 Direct Broadcast Satellite Service (per operational
 station) (47 CFR part 100)...........................
Space Stations (per operational system in non-            94,425
 geostationary orbit) (47 CFR part 25)................
International Bearer Circuits (per active 64KB                 5
 circuit).............................................
International Public Fixed (per call sign) (47 CFR         1,275
 part 23).............................................
International (HF) Broadcast (47 CFR part 73).........       680
------------------------------------------------------------------------


                                      FY 2001 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                      FM Classes
         Population served           AM Class A   AM Class B   AM Class C   AM Class D   FM Classes   B, C, C1 &
                                                                                         A, B1 & C3       C2
----------------------------------------------------------------------------------------------------------------
:20,000...........................          450          350          250          300          350          450
20,001-50,000.....................          850          675          350          475          675          850
50,001-125,000....................        1,375          900          475          700          900        1,375
125,001-400,000...................        2,050        1,450          725          875        1,450        2,050
400,001-1,000,000.................        2,850        2,300        1,300        1,550        2,300        2,850
>1,000,000........................        4,550        3,750        1,900        2,400        3,750        4,550
----------------------------------------------------------------------------------------------------------------


             Attachment E.--Comparison Between FY 2000 & FY 2001 Proposed and Final Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                    Annual                            Annual
                         Fee category                           regulatory fee   NPRM  Proposed   regulatory fee
                                                                   FY 2000        fee  FY 2001       FY 2001
----------------------------------------------------------------------------------------------------------------
PLMRS (per license) (Exclusive (47 CFR part 90)..............         13                5                5
Microwave (per license) (47 CFR part 101)....................         13                5                5
218-219 MHz (Formerly Interactive Video Data Service) (per            13               10               10
 license) (47 CFR part 95)...................................
Marine (Ship) (per station) (47 CFR part 80).................          7               10               10

[[Page 36195]]

 
Marine (Coast) (per license) (47 CFR part 80)................          7                5                5
General Mobile Radio Service (per license) (47 CFR part 95)..          7                5                5
Rural Radio (47 CFR part 22) (previously listed under Land             7                5                5
 Mobile).....................................................
PLMRS (Shared Use) (47 CFR part 90)..........................          7                5                5
Aviation (Aircraft) (per station) (47 CFR part 87)...........          7                5                5
Aviation (Ground) (per license) (47 CFR part 87).............          7               10               10
Amateur Vanity Call Signs (per call sign) (47 CFR part 97)...          1.40             1.20             1.20
CMRS Mobile Services (per unit) (47 CFR parts 20, 22, 24, 27,           .31              .30              .27
 80 and 90)..................................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24             .04              .05              .05
 and 90).....................................................
Multipoint Distribution Services (includes MMDS and LMDS)            275              450              450
 (per call sign) (47 CFR part 21 and 101)....................
AM Construction Permits......................................        250              280              280
FM Construction Permits......................................        755              925              925
TV (47 CFR part 73) VHF Commercial
  Markets 1-10...............................................     39,950           45,100           45,100
  Markets 11-25..............................................     33,275           32,825           32,825
  Markets 26-50..............................................     22,750           21,325           21,325
  Markets 51-100.............................................     12,750           13,750           13,750
  Remaining Markets..........................................      3,300            3,275            3,275
  Construction Permits.......................................      2,700            3,075            3,075
TV (47 CFR part 73) UHF Commercial
  Markets 1-10...............................................     15,075           15,150           15,150
  Markets 11-25..............................................     11,425           12,300           12,300
  Markets 26-50..............................................      7,075            7,075            7,075
  Markets 51-100.............................................      4,225            4,075            4,075
  Remaining Markets..........................................      1,150            1,150            1,150
  Construction Permits.......................................      2,800            4,000            4,000
Satellite Television Stations (All Markets)..................      1,250              740              740
Construction Permits--Satellite Television Stations..........        445              480              480
Low Power TV, TV/FM Translators & Boosters (47 CFR part 74)..        280              305              305
Broadcast Auxiliary (47 CFR part 74).........................         12               10               10
CARS (47 CFR part 78)........................................         53               55               55
Earth Stations (47 CFR part 25)..............................        175              180              180
Cable Television Systems (per subscriber) (47 CFR part 76)...           .47              .49              .49
Interstate Telephone Service Providers (per revenue dollar)..           .00117           .00132           .00132
Space Stations (per operational station in geostationary          94,650           98,125           98,125
 orbit) (47 CFR part 25) also includes Direct Broadcast
 Satellite Service (per operational station (47 CFR part 100)
Space Stations (per operational system in non-geostationary      175,250           94,425           94,425
 orbit) (47 CFR part 25).....................................
International Bearer Circuits (per active 64KB circuit)......          7                5                5
International Public Fixed (per call sign) (47 CFR part 23)..        395            1,275            1,275
International (HF) Broadcast (47 CFR part 73)................        505              680              680
----------------------------------------------------------------------------------------------------------------


                                      FY 2000 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                      FM Classes
         Population Served           AM Class A   AM Class B   AM Class C   AM Class D   FM Classes   B, C, C1 &
                                                                                         A, B1 & C3       C2
----------------------------------------------------------------------------------------------------------------
:20,000...........................          400          300          200          250          300          400
20,001-50,000.....................          800          625          300          425          625          800
50,001-125,000....................        1,325          850          425          650          850        1,325
125,001-400,000...................        1,950        1,350          625          775        1,350        1,950
400,001-1,000,000.................        2,725        2,200        1,200        1,450        2,200        2,725
>1,000,000........................        4,375        3,575        1,725        2,225        3,575        4,375
----------------------------------------------------------------------------------------------------------------


                                      FY 2001 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                      FM Classes
         Population Served           AM Class A   AM Class B   AM Class C   AM Class D   FM Classes   B, C, C1 &
                                                                                         A, B1 & C3       C2
----------------------------------------------------------------------------------------------------------------
:20,000...........................          450          350          250          300          350          450
20,001-50,000.....................          850          675          350          475          675          850
50,001-125,000....................        1,375          900          475          700          900        1,375
125,001-400,000...................        2,050        1,450          725          875        1,450        2,050
400,001-1,000,000.................        2,850        2,300        1,300        1,550        2,300        2,850
>1,000,000........................        4,550        3,750        1,900        2,400        3,750        4,550
----------------------------------------------------------------------------------------------------------------


[[Page 36196]]

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,\156\ as modified in the present Report 
and Order (released July 2, 2001). 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.\157\
---------------------------------------------------------------------------

    \156\ 47 U.S.C. 159(g).
    \157\ 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 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.\158\ 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.
---------------------------------------------------------------------------

    \158\ 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).\159\ 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.\160\ The total regulatory fee due is 
$50 for the ten-year term.
---------------------------------------------------------------------------

    \159\ This category only applies to licensees of shared-use 
private 220-222 MHz and 470 MHz and above in the Specialized Mobile 
Radio (SMR) service who have elected not to change to the Commercial 
Mobile Radio Service (CMRS). Those who have elected to change to the 
CMRS are referred to paragraph 14 of this Attachment.
    \160\ Although this fee category includes licenses with ten-year 
terms, the estimated volume of ten-year license applications in FY 
2001 is less than one-tenth of one percent and, therefore, is 
statistically insignificant.
---------------------------------------------------------------------------

    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

[[Page 36197]]

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. 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.
    13. Rural Radiotelephone Service: Rural Radiotelephone is a fixed 
radio service where a wireless technology is used to provide telephone 
service to subscribers in remote areas. This service operates in the 
paired 152/158 and 454/459 MHz band, pursuant to Parts 1 and 22 of the 
Commission's rules. For FY 2001, Rural Radiotelephone 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 per license 
for the ten-year license term.
c. Amateur Radio Vanity Call Signs
    14. 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.\161\ 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; this total fee due is $12 
per call sign for a ten-year license term.
---------------------------------------------------------------------------

    \161\ Section 9(h) exempts ``amateur radio operator licenses 
under part 97 of the Commission's rules (47 CFR part 97)'' from the 
requirement. However, section 9(g)'s fee schedule explicitly 
includes ``Amateur vanity call signs'' as a category subject to the 
payment of a regulatory fee.
---------------------------------------------------------------------------

d. Commercial Wireless Radio Services
    15. 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);\162\ 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 $.27 per 
unit.
---------------------------------------------------------------------------

    \162\ This category does not include licenses 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.
---------------------------------------------------------------------------

    16. 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.,

[[Page 36198]]

one-way and two-way paging), and 220-222 MHz Band and Interconnected 
Business Radio Service. This category also 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.
    17. 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

    18. The regulatory fees for the Mass Media fee category apply to 
broadcast licensees and permittees. Noncommercial Educational 
Broadcasters are exempt from regulatory fees.
a. Commercial Radio
    19. 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.\163\ 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:
---------------------------------------------------------------------------

    \163\ 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.

                                      FY 2001 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                      FM Classes
         Population served            AM Class    AM Class B   AM Class C   AM Class D   FM Classes   B, C, C1 &
                                                                                         A, B1 & C3       C2
----------------------------------------------------------------------------------------------------------------
:20,000...........................          450          350          250          300          350          450
20,001-50,000.....................          850          675          350          475          675          850
50,001-125,000....................        1,375          900          475          700          900        1,375
125,001-400,000...................        2,050        1,450          725          875        1,450        2,050
400,001-1,000,000.................        2,850        2,300        1,300        1,550        2,300        2,850
>1,000,000........................        4,550        3,750        1,900        2,400        3,750        4,550
----------------------------------------------------------------------------------------------------------------

    20. 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
    21. 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
    22. 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 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
    23. 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
    24. 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

[[Page 36199]]

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
    25. 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
    26. 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
    27. 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
    28. 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.\164\ 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.
---------------------------------------------------------------------------

    \164\ See 10 FCC Rcd 12759, 12762 (1995).
---------------------------------------------------------------------------

j. Broadcast Auxiliary Stations
    29. 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 28 supra). For FY 2001, 
licensees of Commercial Auxiliary Stations will pay an $10 annual 
regulatory fee on a per call sign basis.
k. Multipoint Distribution Service
    30. 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
    31. 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.\165\ 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.
---------------------------------------------------------------------------

    \165\ 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 Television Relay Service
    32. This category includes Cable Television 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, licensees will 
pay an annual regulatory fee of $55 per CARS license.

4. Common Carrier Services

a. Commercial Microwave (Domestic Public Fixed Radio Service)
    33. 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
    34. 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 CAPs/CLECs, incumbent local 
exchange carriers (local telephone operating companies), interexchange 
carriers (long distance telephone companies), local resellers, OSPs 
(operator service

[[Page 36200]]

providers that enable customers to make away from home calls and to 
place calls with alternative billing arrangements), payphone service 
providers, prepaid service providers, 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.\166\ Interstate telephone service providers do not pay 
regulatory fees on revenues 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 revenues 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: \167\
---------------------------------------------------------------------------

    \166\ 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).
    \167\ Although use of the worksheet is voluntary, we encourage 
its use and recommend that a completed copy be attached to your fee 
filing.

                    Calendar 2000 Revenue Information
                     [Show amounts in whole dollars]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
 1  Service provided by U.S. carriers that both originates and   .......
 terminates in foreign points. Form 499-A Line 412(e)..........
 2  Interstate end-user revenues from all telecommunications     .......
 services. Form 499-A Line 420(d)..............................
 3  International end-user revenues from all telecommunications  .......
 services except international-to-international. Form 499-A
 Line 420(e)...................................................
 4  Total end-user revenues (Sum of lines 1, 2 and 3) Note:      .......
 also enter this number on Block (28A)--``FCC Code 1''.........
 5  End-user interstate mobile service monthly and activation    .......
 charges. Form 499-A Line 409(d)...............................
 6  End-user international mobile service monthly and            .......
 activation charges. Form 499-A Line 409(e)....................
 7  End-user interstate mobile service message charges           .......
 including roaming charges but excluding toll charges. Form 499-
 A Line 410(d).................................................
 8  End-user international mobile service message charges        .......
 including roaming charges but excluding toll charges. Form 499-
 A Line 410(e).................................................
 9  End-user interstate satellite services. Form 499-A Line      .......
 416(d)........................................................
10  End-user international satellite services. Form 499-A Line   .......
 416(e)........................................................
11  Surcharges on mobile and satellite services identified as    .......
 recovering universal service contributions and included in
 line 403(d) or 403(e) on your FCC Form 499-A. [Note: you may
 not include surcharges applied to local or toll services, nor
 any surcharges identified as intrastate surcharges.]..........
12  Interstate and international revenues from resellers that    .......
 do not contribute to USF. Form 499-A Line 511(b)..............
13  Total excluded end-user revenues. (Sum lines 5 through 12.)  .......
 Note: also enter this number on Block (29A)--``FCC Code 2''...
14  Total subject revenues. (Line 4 minus Line 13) Note: also    .......
 enter this number on Block (25A)--``Quantity''................
15  Interstate telephone service provider fee factor...........   .00132
16  2001 Regulatory Fee (Line 14 times Line 15) * Note: also     .......
 enter this number on Block (27A)--``Total Fee''...............
------------------------------------------------------------------------
* You are exempt from filing if the amount on line 16 is less than $10.

5. International Services

a. Earth Stations
    35. 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.\168\ 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 2001, licensees of VSATs, Mobile Satellite Earth Stations, and 
Fixed-Satellite 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.
---------------------------------------------------------------------------

    \168\ 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.
---------------------------------------------------------------------------

    36. Receive-only earth stations. For FY 2001, there is no 
regulatory fee for receive-only earth stations.
b. Space Stations (Geostationary Orbit)
    37. 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 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

[[Page 36201]]

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)
    38. 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
    39. 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:

------------------------------------------------------------------------
                                                             Number of
          Analog television channel size in MHz            equivalent 64
                                                           kbps circuits
------------------------------------------------------------------------
36......................................................             630
24......................................................             288
18......................................................             240
------------------------------------------------------------------------

e. International Public Fixed
    40. 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
    41. 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. (Cost of this 
activity is not included in determining regulatory fees.)
    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.
    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

[[Page 36202]]

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.\169\ 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.
---------------------------------------------------------------------------

    \169\ 47 CFR 73.150 and 73.152.
---------------------------------------------------------------------------

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.\170\ 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.
---------------------------------------------------------------------------

    \170\ 47 CFR 73.313.
---------------------------------------------------------------------------

Attachment I

Parties Filing Comments on the Notice of Proposed Rulemaking

Juddie D. Burgess
WorldCom, Inc. (``WorldCom'')
Cellular Telecommunications & Internet Association (``CTIA'')
Wireless Communications Association International, Inc. (``WCA'')
Winstar Communications, Inc. (``Winstar'')
Verizon Wireless (``Verizon'')
IPWireless, Inc. (``IPWireless'')
Paxson Communications Corporation (``Paxson'')

Parties Filing Reply Comments

Sprint Corporation (``Sprint'')

Attachment J.--AM and FM Radio Regulatory Fees

    The List of regulatory fees is available from the FCC Public 
Reference Room, CY-A257, 445 12th St. SW., Washington, DC 20554.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

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

    Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303(r), 309 
and 325 (e).


    2. Section 1.1117 paragraph (c) is revised to read as follows:


Sec. 1.1117  Petitions and applications for review.

* * * * *
    (c) Petitions for waivers, deferrals, fee determinations, 
reconsiderations and applications for review will be acted upon by the 
Managing Director with the concurrence of the General Counsel. All such 
filings within the scope of the fee rules shall be filed as a separate 
pleading and clearly marked to the attention of the Managing Director. 
Any such request that is not filed as a separate pleading will not be 
considered by the Commission. Requests for deferral of a fee payment 
for financial hardship must be accompanied by supporting documentation.
    (1) Petitions and applications for review submitted with a fee must 
be submitted to the Commission's lockbox bank at the address for the 
appropriate service set forth in Secs. 1.1102 through 1.1105.
    (2) If no fee payment is submitted, the request should be filed 
with the Commission's Secretary.
* * * * *

    3. Section 1.1152 is revised to read as follows:


Sec. 1.1152  Schedule of annual regulatory fees and filing locations 
for wireless radio services.

------------------------------------------------------------------------
                                       Fee
                                      amount            Address
---------------------------------------\1\------------------------------
1. Land Mobile (Above 470 MHz and
 220 MHz Local, Base Station &
 SMRS) (47 CFR, Part 90)
    (a) New, Renew/Mod (FCC 601 &       $5.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.

[[Page 36203]]

 
    (b) New, Renew/Mod (Electronic      $5.00  FCC, P.O. Box 358994,
     Riling) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 601 &         $5.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5245.
------------------------------------------------------------------------
                           220 MHz Nationwide
------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC 601 &       $5.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic      $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 601 &         $5.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
2. Microwave (47 CFR Pt. 101)
 (Private)
    (a) New, Renew/Mod (FCC 601 &       $5.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic      $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 601 &         $5.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
3. 218-219 MHz Service
    (a) New, Renew/Mod (FCC 601 &      $10.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic     $10.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 601 &        $10.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic       $10.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
4. Shared Use Services
------------------------------------------------------------------------
         Land Mobile (Frequencies Below 470 MHz--except 220 MHz)
------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC 601 &       $5.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic      $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 601 &         $5.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
------------------------------------------------------------------------
                      General Mobile Radio Service
------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC 605 &       $5.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic      $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 605 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 605 &         $5.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        $5.00  FCC P.O. Box 358994,
     Filing) (FCC 605 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
------------------------------------------------------------------------
                          Rural Radio (Part 22)
------------------------------------------------------------------------
    (a) New, Additional Facility,       $5.00  FCC, P.O. Box 358994,
     Major Renew/Mod (Electronic                Pittsburgh, PA, 15251-
     Filing) (FCC 601 & 159).                   5994.
    (b) Renewal, Minor Renew/Mod        $5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC 601               Pittsburgh, PA, 15251-
     & 159).                                    5994.
------------------------------------------------------------------------
                              Marine Coast
------------------------------------------------------------------------
    (a) New Renewal/Mod (FCC 601 &      $5.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) Renewal Only (FCC 601 &         $5.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (c) Renewal Only (Electronic        $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
------------------------------------------------------------------------
                             Aviation Ground
------------------------------------------------------------------------
    (a) New, Renewal/Mod (FCC 601      $10.00  FCC, P.O. Box 358130,
     & 159).                                    Pittsburgh, PA, 15251-
                                                5130.
    (b) Renewal Only (FCC 601 &        $10.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (c) Renewal Only (Electronic       $10.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
------------------------------------------------------------------------
                               Marine Ship
------------------------------------------------------------------------
    (a) New, Renewal/Mod (FCC 605      $10.00  FCC, P.O. Box 358130,
     & 159).                                    Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renewal/Mod               $10.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC 605               Pittsburgh, PA, 15251-
     & 159).                                    5994.
    (c) Renewal Only (FCC 605 &        $10.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic       $10.00  FCC, P.O. Box 358994,
     Filing) (FCC 605 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
------------------------------------------------------------------------
                            Aviation Aircraft
------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC 605 &       $5.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic      $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 605 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 605 &         $5.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        $5.00  FCC, P.O. Box 358994,
     Filing) (FCC 605 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
5. Amateur Vanity Call Signs
    (a) Initial or Renew (FCC 605       $1.20  FCC, P.O. Box 358130,
     & 159).                                    Pittsburgh, PA, 15251-
                                                5130.
    (b) Initial or Renew                $1.20  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC 605               Pittsburgh, PA, 15251-
     & 159).                                    5994.
6. CMRS Mobile Services (per unit)
    (FCC 159).....................       $.27  FCC, P.O. Box 358835,
                                                Pittsburgh, PA, 15251-
                                                5835.
7. CMRS Messaging Services (per
 unit)

[[Page 36204]]

 
    (FCC 159).....................       $.05  FCC, P.O. Box 358835,
                                                Pittsburgh, PA, 15251-
                                                5835.
------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire
  license term. Therefore, the annual fee amount shown in this table
  must be multiplied by the 5- or 10-year license term, as appropriate,
  to arrive at the total amount of regulatory fees owed. It should be
  further noted that application fees may also apply as detailed in Sec.
   1.1102 of this chapter.

    4. Section 1.1153 is revised to read as follows:


Sec. 1.1153  Schedule of annual regulatory fees and filing locations 
for mass media services.

------------------------------------------------------------------------
                                       Fee
                                      amount            Address
------------------------------------------------------------------------
                   Radio [AM and FM] (47 CFR, Part 73)
------------------------------------------------------------------------
1. AM Class A
    :20,000 population............       $450  FCC, Radio, P.O. Box
    20,001-50,000 population......       $850   358835, Pittsburgh, PA,
    50,001-125,000 population.....     $1,375   15251-5835.
    125,001-400,000 population....     $2,050
    400,001-1,000,000 population..     $2,850
    >1,000,000 population.........     $4,550
2. AM Class B
    :20,000 population............       $350
    20,001-50,000 population......       $675
    50,001-125,000 population.....       $900
    125,001-400,000 population....     $1,450
    400,001-1,000,000 population..     $2,300
    >1,000,000 population.........     $3,750
3. AM Class C
    :20,000 population............       $250
    20,001-50,000 population......       $350
    50,001-125,000 population.....       $475
    125,001-400,000 population....       $725
    400,001-1,000,000 population..     $1,300
    >1,000,000 population.........     $1,900
4. AM Class D
    :20,000 population............       $300
    20,001-50,000 population......       $475
    50,001-125,000 population.....       $700
    125,001-400,000 population....       $875
    400,001-1,000,000 population..     $1,550
    >1,000,000 population.........     $2,400
5. AM Construction Permit.........       $280
6. FM Classes A, B1 and C3
    :20,000 population............       $350
    20,001-50,000 population......       $675
    50,001-125,000 population.....       $900
    125,001-400,000 population....     $1,450
    400,001-1,000,000 population..     $2,300
    >1,000,000 population.........     $3,750
7. FM Classes B, C, C1 and C2
    :20,000 population............       $450
    20,001-50,000 population......       $850
    50,001-125,000 population.....     $1,375
    125,001-400,000 population....     $2,050
    400,001-1,000,000 population..     $2,850
    >1,000,000 population.........     $4,550
8. FM Construction Permits........       $925
------------------------------------------------------------------------
                          TV (47 CFR, Part 73)
------------------------------------------------------------------------
          VHF Commercial
1. Markets 1 thru 10..............    $45,100  FCC, TV Branch, P.O. Box
2. Markets 11 thru 25.............    $32,825   358835, Pittsburgh, PA,
3. Markets 26 thru 50.............    $21,325   15251-5835.
4. Markets 51 thru 100............    $13,750
5. Remaining Markets..............     $3,275
6. Construction Permits...........     $3,075
 

[[Page 36205]]

 
          UHF Commercial
1. Markets 1 thru 10..............    $15,150  FCC, UHF Commercial, P.O.
2. Markets 11 thru 25.............    $12,300   Box 358835, Pittsburgh,
3. Markets 26 thru 50.............     $7,075   PA, 15251-5835.
4. Markets 51 thru 100............     $4,075
5. Remaining Markets..............     $1,150
6. Construction Permits...........     $4,000
------------------------------------------------------------------------
                      Satellite UHF/VHF Commercial
------------------------------------------------------------------------
1. All Markets....................       $740  FCC Satellite TV, P.O.
2. Construction Permits...........       $480   Box 358835, Pittsburgh,
                                                PA, 15251-5835.
Low Power TV, TV/FM Translator, &        $305  FCC, Low Power, P.O. Box
 TV/FM Booster (47 CFR Part 74).                358835, Pittsburgh, PA,
                                                15251-5835;.
Broadcast Auxiliary...............        $10  FCC, Auxiliary, P.O. Box
                                                358835, Pittsburgh, PA,
                                                15251-5835.
Multipoint Distribution...........       $450  FCC, Multipoint, P.O. Box
                                                358835, Pittsburgh, PA,
                                                15251-5835.
------------------------------------------------------------------------

    5. Section 1.1154 is revised to read as follows:


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

------------------------------------------------------------------------
                                       Fee
                                      amount            Address
------------------------------------------------------------------------
                            Radio Facilities
------------------------------------------------------------------------
1. Microwave (Domestic Public           $5.00  FCC, P.O. Box 358994,
 Fixed)(Electronic Filing) (FCC                 Pittsburgh, PA 15251-
 Form 601 & 159).                               5994.
------------------------------------------------------------------------
                                Carriers
------------------------------------------------------------------------
1. Interstate Telephone Service      $ .00132  FCC, Carrier, P.O. Box
 Providers (per interstate and                  358835, Pittsburgh, PA,
 international end-user revenues                15251-5835.
 (see FCC Form 499-A).
------------------------------------------------------------------------


    6. Section 1.1155 is revised to read as follows:


Sec. 1.1155  Schedule of regulatory fees and filing locations for cable 
television services.

------------------------------------------------------------------------
                                       Fee
                                      amount            Address
------------------------------------------------------------------------
1. Cable Television Relay Service.        $55  FCC, Cable, P.O. Box
2. Cable TV System (per                   .49   358835, Pittsburgh, PA,
 subscriber).                                   15251-5835.
------------------------------------------------------------------------


    7. Section 1.1156 is revised to read as follows:


Sec. 1.1156  Schedule of regulatory fees and filing locations for 
international services.

------------------------------------------------------------------------
                                       Fee
                                      amount            Address
------------------------------------------------------------------------
                            Radio Facilities
------------------------------------------------------------------------
1. International (HF) Broadcast...       $680  FCC, International, P.O.
                                                Box 358835, Pittsburgh,
                                                PA, 15251-5835.
2. International Public Fixed.....      1,275  FCC, International, P.O.
                                                Box 358835, Pittsburgh,
                                                PA, 15251-5835.
Space Stations (Geostationary          98,125  FCC, Space Stations, P.O.
 Orbit).                                        Box 358835, Pittsburgh,
                                                PA, 15251-5835.
Space Stations (Non-Geostationary      94,425  FCC, Space Stations, P.O.
 Orbit).                                        Box 358835, Pittsburgh,
                                                PA, 15251-5835.
------------------------------------------------------------------------
                             Earth Stations
------------------------------------------------------------------------
Transmit/Receive & Transmit Only          180  FCC, Earth Station, P.O.
 (per authorization or                          Box 358835, Pittsburgh,
 registration).                                 PA, 15251-5835.
------------------------------------------------------------------------
                                Carriers
------------------------------------------------------------------------
1. International Bearer Circuits         5.00  FCC, International, P.O.
 (per active 64KB circuit or                    Box 358835, Pittsburgh,
 equivalent).                                   PA, 15251-5835.
------------------------------------------------------------------------


[[Page 36206]]


    8. Section 1.1166 paragraph (a) is revised to read as follows:


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

* * * * *
    (a) Requests for waivers, reductions or deferrals will be acted 
upon by the Managing Director with the concurrence of the General 
Counsel. All such filings within the scope of the fee rules shall be 
filed as a separate pleading and clearly marked to the attention of the 
Managing Director. Any such request that is not filed as a separate 
pleading will not be considered by the Commission.
    (1) If the request for waiver, reduction or deferral is accompanied 
by a fee payment, the request must be submitted to the Commission's 
lockbox bank at the address for the appropriate service set forth in 
Secs. 1.1152 through 1.1156 of this subpart.
    (2) If no fee payment is submitted, the request should be filed 
with the Commission's Secretary.
* * * * *
[FR Doc. 01-17114 Filed 7-10-01; 8:45 am]
BILLING CODE 6712-01-P