[Federal Register Volume 67, Number 69 (Wednesday, April 10, 2002)]
[Proposed Rules]
[Pages 17325-17349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8600]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 02-64; FCC 02-92]


Assessment and Collection of Regulatory Fees for Fiscal Year 2002

AGENCY: Federal Communications Commission.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: The Commission is proposing to revise its Schedule of 
Regulatory Fees in order to recover the amount of regulatory fees that 
Congress has required it to collect for fiscal year 2002. Section 9 of 
the Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees under sections 9(b)(2) and 
(b)(3), respectively, for annual ``Mandatory Adjustments'' and 
``Permitted Amendments'' to the Schedule of Regulatory Fees.

DATES: Comments are due on or before April 23, 2002, and reply comments 
are due on or before May 3, 2002.

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

SUPPLEMENTARY INFORMATION:
    Adopted: March 22, 2002.
    Released: March 27, 2002.
    By the Commission:

                            Table of Contents
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                                                               Paragraph
                            Topic                                 Nos.
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I. Introduction..............................................          1
II. Background...............................................          4
III. Discussion:
  A. Summary of FY 2002 Fee Methodology......................          9
  B. Development of FY 2002 Fees.............................
  i. Adjustment of Payment Units.............................         13
  ii. Calculation of Revenue Requirements....................         14
  iii. Recalculation of Fees.................................         15
  C. Procedures for Payment of Regulatory Fees...............         17
  i. Annual Payments of Standard Fees........................         18
  ii. Installment Payments for Large Fees....................         19
  iii. Advance Payments of Small Fees........................         20
  iv. Deminimis Fee Payment Liability........................         21
  v. Standard Fee Calculations and Payments..................         22
  vi. Mandatory Use of FCC Registration Number (FRN).........         25
  vii. Population Count of AM and FM Radio Stations..........         26
  viii. Technical Changes....................................         28
  D. Schedule of FY 2002 Regulatory Fees.....................         31
  E. Enforcement.............................................         32
IV. Procedural Matters:
  A. Comment Period and Procedures...........................         33
  B. Ex Parte Rules..........................................         38
  C. Initial Regulatory Flexibility Analysis.................         39
  D. Authority and Further Information.......................         40
Attachment A--Initial Regulatory Flexibility Analysis
Attachment B--Sources of Payment Unit Estimates for FY 2002
Attachment C--Calculation of Revenue Requirements and Pro-
 Rata Fees
Attachment D--FY 2002 Schedule of Regulatory Fees
Attachment E--Comparison Between FY 2001 and FY 2002 Proposed
 Regulatory Fees
Attachment F--Detailed Guidance on Who Must Pay Regulatory
 Fees
Attachment G--Description of FCC Activities
Attachment H--Factors, Measurements, and Calculations that
 Determine Station Signal Contours and Population Coverages
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I. Introduction

    1. By this Notice of Proposed Rulemaking (NPRM), the Commission 
begins a proceeding to revise its Schedule of Regulatory Fees to 
collect the amount of regulatory fees that Congress, pursuant to 
section 9(a) of the

[[Page 17326]]

Communications Act, as amended, has required us to collect for Fiscal 
Year (FY) 2002.\1\
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    \1\ 47 U.S.C. 159(a).
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    2. Congress has required that we collect $218,757,000 through 
regulatory fees to recover the costs of our competition, enforcement, 
spectrum management, and consumer information activities for FY 
2002.\2\ This amount is $18,611,000 or approximately 9.3% more than the 
amount that Congress designated for recovery through regulatory fees 
for FY 2001.\3\ We are proposing to revise our fees in order to collect 
the amount that Congress has specified, as illustrated in a new fee 
schedule in Attachment D.
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    \2\ Public Law 107-77 and 47 U.S.C. 159(a)(2).
    \3\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2001, 66 FR 36177 (2001).
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    3. In proposing to revise our fees, we adjusted the payment units 
and revenue requirement for each service subject to a fee, consistent 
with section 159(b)(2). The current Schedule of Regulatory Fees is set 
forth in Secs. 1.1152 through 1.1156 of the Commission's rules.\4\
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    \4\ 47 CFR 1.1152 through 1.1156.
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II. Background

    4. Section 9(a) of the Communications Act of 1934, as amended, 
authorizes the Commission to assess and collect annual regulatory fees 
to recover costs, as determined annually by Congress, that it incurs in 
carrying out enforcement, policy and rulemaking, international, and 
user information activities.\5\ See Attachment G for a description of 
these activities. In our FY 1994 Fee Order,\6\ we adopted the Schedule 
of Regulatory Fees that Congress established, and 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 also amended the rules governing our regulatory fee program 
based upon our prior experience in administering the program.\8\
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    \5\ 47 U.S.C. 159(a).
    \6\ 59 FR 30984 (1994).
    \7\ 47 U.S.C. 159(b), (f)(1).
    \8\ 47 CFR 1.1151 et seq.
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    5. As noted, for FY 1994 we adopted the Schedule of Regulatory Fees 
established in section 9(g) of the Act. For fiscal years after FY 1994, 
however, sections 9(b)(2) and (b)(3), respectively, provide for 
``Mandatory Adjustments'' and ``Permitted Amendments'' to the Schedule 
of Regulatory Fees.\9\ Section 9(b)(2), entitled ``Mandatory 
Adjustments,'' requires that we revise the Schedule of Regulatory Fees 
to reflect the amount that Congress requires us to recover through 
regulatory fees.\10\
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    \9\ 47 U.S.C. 159(b)(2), (b)(3).
    \10\ 47 U.S.C. 159(b)(2).
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    6. Section 9(b)(3), entitled ``Permitted Amendments,'' requires 
that we determine annually whether additional adjustments to the fees 
are warranted, taking into account factors that are in the public 
interest, as well as issues that are reasonably related to the payer of 
the fee. These amendments permit us to ``add, delete, or reclassify 
services in the Schedule to reflect additions, deletions or changes in 
the nature of its services . . .'' \11\
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    \11\ 47 U.S.C. 159(b)(3).
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    7. Section 9(i) requires that we develop accounting systems 
necessary to adjust our fees pursuant to changes in the cost of 
regulating various services that are subject to a fee, and for other 
purposes.\12\ The Commission is in the process of planning a new cost 
accounting system, which we anticipate to be operational after 
sufficient testing in FY 2004. For FY 1997, we relied for the first 
time on cost accounting data to identify our regulatory costs and to 
develop our FY 1997 fees based upon these costs. Also, in FY 1997, we 
found that some fee categories received disproportionately high cost 
allocations. We adjusted for these high cost allocations by 
redistributing the costs, and maintained a 25% limit on the extent in 
which service fee categories can be increased. We believed that this 
25% limit would enable cost-based service fees to be implemented more 
gradually over time. We thought that this methodology, which we 
continued to use for FY 1998, would enable us to develop a regulatory 
fees schedule that reflected our cost of regulation. Over time, as the 
cost of regulation increases or decreases, this methodology would 
enable us to revise 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 flawed 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 but 
flawed cost data. Instead, we chose to base the FY 1999 through FY 2001 
fees on the basis of ``Mandatory Adjustments'' only. We have found no 
reason to deviate from this policy for FY 2002. However, we are 
proposing to apply the ``Mandatory Adjustments'' as we did in FY 2001 
to better incorporate changes in payment units. As noted above, 
however, we expect to have a new cost accounting system in place in FY 
2004. 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 2002 Fee Methodology

    9. As noted above, Congress has required that the Commission 
recover $218,757,000 for FY 2002 through the collection of regulatory 
fees, representing the costs applicable to our enforcement, policy and 
rulemaking, international, and user information activities.\14\
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    \14\ 47 U.S.C. 159(a).
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    10. In developing our proposed FY 2002 fee schedule, we first 
estimated the number of payment units \15\ for FY 2002. Then we 
compared the FY 2001 revenue estimate amount to the $218,757,000 that 
Congress has required us to collect in FY 2002 and pro-rated the 
difference among all the existing fee categories. Finally, we divided 
the FY 2002 payment unit estimates into the pro-rated FY 2002 revenue 
estimates to determine the new FY 2002 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 2002 fees, we evaluated 
proposals made by Commission staff concerning ``Permitted Amendments'' 
to the Fee Schedule and to our collection procedures. Collection 
procedure matters are discussed in paragraphs 17-23.
    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 important information designed to assist 
potential fee payers in determining the extent of their fee liability, 
if any, for FY 2002.\16\ In the following paragraphs, we describe in 
greater detail our proposed methodology for establishing our FY 2002 
regulatory fees.
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    \16\ We also will incorporate a similar Attachment in the FY 
2002 Report and Order concluding this rulemaking. That Attachment 
will contain updated information concerning any changes made to the 
proposed fees that will be adopted in the FY 2002 Report and Order.

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[[Page 17327]]

B. Development of FY 2002 Fees

i. Adjustment of Payment Units
    13. In calculating FY 2002 regulatory fees for each service, we 
adjusted the estimated payment units for each service to reflect 
substantial changes in payment units for many services since adopting 
our FY 2001 fees. We obtained our estimated payment units through a 
variety of means, including our licensee data bases, actual prior year 
payment records, and industry and trade group projections. Whenever 
possible, we verified these estimates from multiple sources to ensure 
accuracy of these estimates. Attachment B summarizes how revised 
payment units were determined for each fee category.\17\
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    \17\ It is important to note also that Congress required a 
revenue increase in regulatory fee payments of approximately 9.3 
percent in FY 2002, which will not fall equally on all payers 
because payment units have changed in several services. When the 
number of payment units in a service increases from one year to 
another, fees do not have to rise as much as they would if payment 
units had decreased or remained stable. Declining payment units have 
the opposite effect on fees.
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ii. Calculation of Revenue Requirements
    14. We compared the sum of all estimated revenue requirements for 
FY 2001 to the amount that Congress has required us to collect for FY 
2002 ($218,757,000), which is approximately 9.3% more total revenue 
than in FY 2001. We increased each FY 2001 fee revenue category 
estimate by 9.3% to provide a total FY 2002 revenue estimate of 
$218,757,000. Attachment C provides detailed calculations showing how 
we determined the revised revenue amounts to be raised for each 
service.
iii. Recalculation of Fees
    15. Once we determined the revenue requirement for each service and 
class of licensee, we divided the revenue requirement by the number of 
estimated payment units (and by the license term for ``small'' fees) to 
obtain actual fee amounts for each fee category. These calculated fee 
amounts were then rounded in accordance with section 9(b)(2) of the 
Act. See Attachment C.
    16. We examined the results of our calculations to determine if 
further adjustments of the fees and/or changes to payment procedures 
were warranted based upon the public interest and other criteria 
established in 47 U.S.C. 159(b)(3). Unless otherwise noted herein, 
nothing else in this proceeding is intended to change any policies or 
procedures established or reaffirmed in the FY 2001 Order (66 FR 
36177).

C. Procedures for Payment of Regulatory Fees

    17. Generally, we propose to retain the procedures that we have 
established for the payment of regulatory fees. See paragraphs 18, 19, 
and 20. Section 9(f) requires that we permit ``payment by installments 
in the case of fees in large amounts, and in the case of small amounts, 
shall require the payment of the fee in advance for a number of years 
not to exceed the term of the license held by the payer.'' See 47 
U.S.C. 159(f)(1). Consistent with section 9(f), we are again proposing 
to establish three categories of fee payments, based upon the category 
of service for which the fee payment is due and the amount of the fee 
to be paid. The fee categories are: (1) ``Standard'' fees, (2) 
``large'' fees, and (3) ``small'' fees.
i. Annual Payments of Standard Fees
    18. As we have in the past, we are proposing to treat regulatory 
fee payments by certain licensees as ``standard fees'' which are those 
regulatory fees that are payable in full on an annual basis. Payers of 
standard fees are not required to make advance payments for their full 
license term and are not eligible for installment payments. All 
standard fees are payable in full on the date we establish for payment 
of fees in their regulatory fee category. The payment dates for each 
regulatory fee category will be announced either in the Report and 
Order terminating this proceeding or by public notice in the Federal 
Register pursuant to authority delegated to the Managing Director.
ii. Installment Payments for Large Fees
    19. While time constraints may preclude an opportunity for 
installment payments, we propose that regulatees in any category of 
service with a liability of $12,000 or more be eligible, if 
practicable, to make installment payments. Eligibility for installment 
payments will be based upon the amount of either a single regulatory 
fee payment or a combination of fee payments by the same licensee or 
regulatee. We propose that regulatees eligible to make installment 
payments may submit their required fees in two equal payments (on dates 
to be announced) or, in the alternative, in a single payment on the 
date that their final installment payment is due. However, because of 
time constraints in collecting and recording the fees, it is unlikely 
that there will be sufficient time for installment payments. Therefore, 
regulatees who may be eligible to make installment payments may be 
required, if time constraint permits, to pay these fees on the last 
date that fee payments may be submitted. The dates for installment 
payments, or a single payment, will be announced either in the Report 
and Order terminating this proceeding or by public notice published in 
the Federal Register pursuant to authority delegated to the Managing 
Director.
iii. Advance Payments of Small Fees
    20. As we have in the past, we are proposing to treat regulatory 
fee payments by certain licensees as ``small'' fees subject to advance 
payment consistent with the requirements of section 9(f)(2). We propose 
that advance payments will be required from licensees of those services 
that we decided would be subject to advance payments in our FY 1994 
Report and Order, and to those additional payers noted.\18\ We are also 
proposing that payers of advance fees will submit the entire fee due 
for the full term of their licenses when filing their initial, renewal, 
or reinstatement application. Regulatees subject to a payment of small 
fees shall pay the amount due for the current fiscal year multiplied by 
the number of years in the term of their requested license. In the 
event that the required fee is adjusted following their payment of the 
fee, the payer would not be subject to the payment of a new fee until 
filing an application for renewal or reinstatement of the license. 
Thus, payment for the full license term would be made based upon the 
regulatory fee applicable at the time the application is filed. The 
effective date for payment of small fees established in this proceeding 
will be announced in our Report and Order terminating this proceeding 
or by public notice published in the Federal Register per authority 
delegated to the Managing Director.
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    \18\ Applicants for new, renewal and reinstatement licenses in 
the following services will be required to pay their regulatory fees 
in advance: Land Mobile Services, Microwave Services, Marine (Ship) 
Service, Marine (Coast) Service, Private Land Mobile (Other) 
Services, Aviation (Aircraft) Service, Aviation (Ground) Service, 
General Mobile Radio Service (GMRS), 218-219 MHz Service (if any 
applications should be filed), Rural Radio Service, and Amateur 
Vanity Call Signs.
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iv. Deminimis Fee Payment Liability
    21. As we have in the past, we are proposing that regulatees whose 
total regulatory fee liability, including all categories of fees for 
which payment is due by an entity, amounts to less than $10 will be 
exempted from fee payment in FY 2002.

[[Page 17328]]

v. Standard Fee Calculations and Payment Dates
    22. The time for payment of standard fees and any installment 
payments will be announced in our Report and Order terminating this 
proceeding or will be published in the Federal Register pursuant to 
authority delegated to the Managing Director. For licensees and 
permittees of Mass Media services, we propose that the responsibility 
for payment of regulatory fees rests with the holder of the permit or 
license on October 1, 2001. However, in instances where a Mass Media 
service license or authorization is transferred or assigned after 
October 1, 2001, and arrangements to pay have not been made between the 
two parties, the fee is still due and we propose that the fee shall be 
paid by the licensee or holder of the authorization on the date that 
the fee payment is due. For licensees, permittees and holders of other 
authorizations in the Common Carrier and Cable Services whose fees are 
not based on a subscriber, unit, or circuit count, we are proposing 
that fees be paid for any authorization issued on or before October 1, 
2001. A pending change in the status of a license or permit that is not 
granted as of that date is not taken into account, and the fee is based 
on the authorization that existed on October 1, 2001.
    23. For regulatees whose fees are based upon a subscriber, unit or 
circuit count, such as cable subscriber services and Commercial Mobile 
Radio Service (CMRS) cellular, mobile, and messaging services, the 
number of a regulatees' subscribers, units or circuits on December 31, 
2001, will be used to calculate the fee payment.\19\ 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, 2001, the fee shall be paid by the 
licensee or holder of the authorization on the date that the payment is 
due. For facilities-based common carriers with active international 
bearer circuits, the fee is based on the circuit count as of December 
31, 2001.
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    \19\ Cable system operators are to compute their subscribers as 
follows: Number of single family dwellings + number of individual 
households in multiple dwelling unit (apartments, condominiums, 
mobile home parks, etc.) paying at the basic subscriber rate + bulk 
rate customers + courtesy and free service. Note: Bulk-Rate 
Customers = Total annual bulk-rate charge divided by basic annual 
subscription rate for individual households. Cable system operators 
may base their count on ``a typical day in the last full week'' of 
December 2001, rather than on a count as of December 31, 2001.
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    24. Because of the time constraint in paying regulatory fees, the 
Commission highly recommends that entities submitting more than twenty-
five (25) Form 159-C's use the electronic fee filer program when 
sending in their regulatory fee payment. This will not only reduce 
errors that can result, but also reduce the amount of paperwork that is 
received by the Commission. Furthermore, as was the practice last year, 
the Commission will, for the convenience of payers, accept fee payments 
made in advance of the normal formal window for the payment of 
regulatory fees.
vi. Mandatory Use of FCC Registration Number (FRN)
    25. As a result of a Commission proceeding adopted on August 24, 
2001 and effective December 3, 2001, the use of the FCC Federal 
Registration Number (FRN) is now mandatory by anyone doing business 
with the Commission, including those subject to the regulatory fee 
program.\20\ Failure to follow the directions regarding the use of the 
FRN will result in a delay in crediting the payment to the proper 
account, which may result in the initiation of a delinquent collection 
effort against the entity.
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    \20\ 66 FR 47890 (September 14, 2001).
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vii. Population Count of AM and FM Radio Stations
    26. The population count for radio stations is not derived merely 
by a census count of the surrounding community, but from a formula that 
incorporates various indices such as power, tower size, class size, and 
other technical attributes. The methodology for calculating the 
population count is listed in Attachment H of the Assessment and 
Collection of Regulatory Fees, Notice of Proposed Rulemaking, and 
Report and Order. Because a number of components are used to calculate 
the population city grade of each station, it is possible that in some 
instances the calculation of the population count and related fee may 
inadvertently be incorrectly stated in the Mass Media Regulatory Fees 
Public Notice that identifies the radio station call signs and their 
respective fees. Therefore, we propose that if a licensee has paid the 
fee listed in the Mass Media Regulatory Fees Public Notice and it is 
later determined that the population calculation for the station is 
incorrect, and a letter verifying the correct population count is 
provided from the supplier of the population calculation, the 
Commission will refund the fee amount overpaid. Similarly, we also 
propose that if it is determined that the population calculation and 
related fee for the station has been understated, and the Commission 
obtains verification of the correct population calculation from the 
supplier of the population calculation, the Commission will bill the 
licensee for the difference in fees that should have been paid.
    27. We further propose that we will make corrections for such 
population calculation errors, whether by refunding or billing for 
corrected fee amounts, only for three (3) fiscal years after the error 
appears in the Mass Media Regulatory Fees Public Notice. For example, 
in the case of a population calculation error resulting in an 
overstated fee amount, if the Mass Media Regulatory Fees Public Notice 
for FY 2002 contains a population calculation and related fee error and 
the licensee provides the appropriate verification of the error before 
September 30, 2005, the Commission will refund the amount overpaid. 
Similarly, in a case where a population calculation error results in an 
understated fee amount, if the Fiscal Year 2002 population calculation 
error is discovered and verified before September 30, 2005, the 
Commission will bill the licensee for the difference between the 
correct fee and the fee listed in the Fiscal Year 2002 Mass Media 
Regulatory Fees Public Notice. We believe that three years provides a 
reasonable time for a licensee or the Commission to discover and seek 
to rectify population calculation errors, and that limiting the time 
for correction of fees will protect both licensees and the Government 
from being subject to indefinite potential obligations to make 
corrective payments.
viii. Technical Changes
    28. Presently, regulatory fee payments may be made by Visa and 
MasterCard credit cards. When paying by credit card, regulatees have 
two options: (1) Regulatees may submit their payment by using the 
Commission's FeeFiler (an electronic payment system), or (2) Regulatees 
may provide the requested credit card information on the FCC Form 159, 
(Remittance Advice), and mail it to the address described in the Public 
Notice. Refunds of regulatory fees paid by credit cards are made by 
check payable to the regulatory fee payor. No refunds are issued to the 
card processor. To expand the use of other types of credit cards, the 
Commission proposes to accept American Express and Discover credit 
cards in addition to Visa and MasterCard credit cards.
    29. It has come to our attention that we did not make corresponding 
revisions to certain descriptive portions of Secs. 1.1152 and 1.1157 of 
our rules

[[Page 17329]]

when the regulatory fees for wireless radio services were amended to 
include standard annual regulatory fees based on payment units for 
Commercial Mobile Radio Service (CMRS) and CMRS messaging. We propose 
to make the necessary changes to these descriptive portions of 
Secs. 1.1152 and 1.1157 of our rules to reflect that it is no longer 
the case that all regulatory fee payments for wireless radio services 
are paid in advance when applications are filed.
    30. The Commission incurs transaction costs when processing 
refunds. The Commission has determined that, in some instances, the 
transaction costs outweigh the dollar amount of the refund. Therefore, 
in terms of more efficient money management, the Commission proposes 
that payments in excess of an application or regulatory fee will be 
refunded only if the overpayment is $10 or more.

D. Schedule of Regulatory Fees

    31. The Commission's proposed Schedule of Regulatory Fees for FY 
2002 is contained in Attachment D of this NPRM.

E. Enforcement

    32. As required in 47 U.S.C. 159(c), an additional charge shall be 
assessed as a penalty for late payment of any regulatory fee. A late 
payment penalty of 25 percent of the amount of the required regulatory 
fee will be assessed on the first day following the deadline date for 
filing of these fees. Failure to pay regulatory fees and/or any late 
penalty will subject regulatees to sanctions, including the provisions 
set forth in the Debt Collection Improvement Act of 1996 (``DCIA''). 
The Commission assesses administrative processing charges on delinquent 
debts to recover additional costs incurred in processing and handling 
the related debt pursuant to the DCIA and Sec. 1.1940(d) of the 
Commission's Rules. These administrative processing charges will be 
assessed on any delinquent regulatory fee, in addition to the 25 
percent late charge penalty. Partial or underpayment of regulatory fees 
are treated in the following manner. The licensee will be given credit 
for the amount paid, but if it is later determined that the fee paid is 
incorrect or was submitted after the deadline date, the 25 percent late 
charge penalty will be assessed on the portion that is submitted after 
the filing window. See 47 CFR 1.1164. Failure to pay regulatory fees 
can result in the initiation of a proceeding to revoke any and all 
authorizations held by the delinquent payor. See 47 CFR 1.1164.

IV. Procedural Matters

A. Comment Period and Procedures

    33. Pursuant to Secs. 1.415 and 1.419 of the Commission's rules, 47 
CFR 1.415, 1.419, interested parties may file comments on or before 
April 23, 2002, and reply comments on or before May 3, 2002. Comments 
may be filed using the Commission's Electronic Comment Filing System 
(ECFS) or by filing paper copies.\21\
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    \21\ Electronic Filing of Documents in Rulemaking Proceedings, 
63 FR 24121 (May 1, 1998).
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    34. Comments filed through the ECFS can be sent as an electronic 
file via the Internet to http://www.fcc.gov/e-file/ecfs.html. 
Generally, only one copy of an electronic submission must be filed. In 
completing the transmittal screen, commenters should include their full 
name, Postal Service mailing address, and the applicable docket or 
rulemaking number. Parties may also submit an electronic comment by e-
mail via the Internet. To receive filing instructions for e-mail 
comments, commenters should send an e-mail to [email protected], and should 
include the following words in the body of the message, ``get form your 
e-mail address.>'' A sample form and directions will be sent in reply.
    35. Parties who choose to file by paper must file an original and 
four copies of each filing. Filings can be sent by hand or messenger 
delivery, by commercial overnight courier, or by first-class or 
overnight U.S. Postal Service mail (although we continue to experience 
delays in receiving U.S. Postal Service mail). The Commission's 
contractor, Vistronix, Inc., will receive hand-delivered or messenger-
delivered paper filings for the Commission's Acting Secretary, William 
F. Caton, at 236 Massachusetts Avenue, NE., Suite 110, Washington, DC 
20002. The filing hours at this location will be 8:00 a.m. to 7:00 p.m. 
All hand deliveries must be held together with rubber bands or 
fasteners. Any envelopes must be disposed of before entering the 
building. Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743. U.S. Postal Service first-class mail, 
Express Mail, and Priority Mail should be addressed to 445 12th Street, 
SW., Washington, DC 20554. All filings must be addressed to the 
Commission's Acting Secretary, William F. Caton, Office of the 
Secretary, Federal Communications Commission.
    36. Parties who choose to file by paper should also submit their 
comments on diskette. These diskettes should be submitted to: Terry 
Johnson, Office of Managing Director, Federal Communications 
Commission, 445 12th Street, SW., 1-C807, Washington, DC 20554. Such a 
submission should be on a 3.5 inch diskette formatted in an IBM 
compatible format using Microsoft TM Word 97 for Windows or compatible 
software. The diskette should be accompanied by a cover letter and 
should be submitted in ``read only'' mode. The diskette should be 
clearly labeled with the commenter's name, proceeding (including the 
lead docket number in this case, MD Docket No. 02-64), type of pleading 
(comment or reply comment), date of submission, and the name of the 
electronic file on the diskette. The label should also include the 
following phrase ``Disk Copy--Not an Original.'' Each diskette should 
contain only one party's pleadings, preferably in a single electronic 
file. In addition, commenters must send diskette copies to the 
Commission's copy contractor, Qualex International, 445 12th Street, 
SW., Room CY-B402, Washington, DC 20554. Alternative formats (computer 
diskette, large print, audio recording, and Braille) are available to 
persons with disabilities by contacting Brian Millin at (202) 418-7426 
voice, (202) 418-7365 TTY, or [email protected]. This NPRM can also be 
downloaded in Microsoft Word and ASCII formats at http://www.fcc.gov/ccb/cpd.
    37. The public may view the documents filed in this proceeding 
during regular business hours in the FCC Reference Center, Federal 
Communications Commission, Room CY-A257, 445 12th Street, S.W., 
Washington, D.C. 20554, and through the Commission's Electronic Comment 
Filing System (ECFS) http://www.fcc.gov/e-file/ecfs.html.

B. Ex Parte Rules

    38. This is a permit-but-disclose notice and comment rulemaking 
proceeding. Ex parte presentations are permitted, except during the 
Sunshine Agenda period, provided they are disclosed pursuant to the 
Commission's rules.\22\
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    \22\ 47 CFR 1.1203 and 1.1206(b).
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C. Initial Regulatory Flexibility Analysis

    39. As required by the Regulatory Flexibility Act,\23\ the 
Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the possible impact on small entities of the proposals 
suggested in this document. The IRFA is set forth as Attachment A.

[[Page 17330]]

Written public comments are requested with respect to the IRFA. These 
comments must be filed in accordance with the same filing deadlines for 
comments on the rest of the NPRM, and must have a separate and distinct 
heading, designating the comments as responses to the IRFA. The 
Consumer and Governmental Affairs Bureau (CGA), Reference Information 
Center, shall send a copy of this NPRM, including the IRFA, to the 
Chief Counsel for Advocacy of the Small Business Administration, in 
accordance with the Regulatory Flexibility Act.
---------------------------------------------------------------------------

    \23\ See 5 U.S.C. 603.
---------------------------------------------------------------------------

D. Authority and Further Information

    40. Authority for this proceeding is contained in sections 4(i) and 
(j), 8, 9, and 303(r) of the Communications Act of 1934, as 
amended.\24\ It is ordered that this NPRM is adopted. It is further 
ordered that the Commission's Consumer and Governmental Affairs Bureau 
(CGA), Reference Information Center, shall send a copy of this NPRM, 
including the Initial Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration.
---------------------------------------------------------------------------

    \24\ 47 U.S.C. 154(i)-(j), 159, & 303(r).
---------------------------------------------------------------------------

    41. Further information about this proceeding may be obtained by 
contacting the Fees Hotline at (888) 225-5322.

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

Attachment A--Initial Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\25\ an 
Initial Regulatory Flexibility Analysis (IRFA) of the possible 
significant economic impact on small entities was incorporated in the 
Notice of Proposed Rulemaking, In the Matter of Assessment and 
Collection of Regulatory Fees for Fiscal Year 2002.\26\ Written public 
comments are requested on this IRFA. Comments must be identified as 
responses to the IRFA and must be filed by the deadlines for comments 
on the IRFA provided in the comment period section of the NPRM. The 
Commission will send a copy of the NPRM, including IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration. In addition, 
the NPRM and IRFA (or summaries thereof) will be published in the 
Federal Register. This present Initial Regulatory Flexibility Analysis 
(IRFA) conforms to the RFA.\27\
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    \25\ 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).
    \26\ 66 FR 19681 (April 16, 2001).
    \27\ 5 U.S.C. 604.
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I. Need for, and Objectives of, the Proposed Rules

    2. This rulemaking proceeding is initiated to obtain comments 
concerning the Commission's proposed amendment of its Schedule of 
Regulatory Fees in the amount of $218,757,000, the amount that Congress 
has required the Commission to recover. The Commission seeks to collect 
the necessary amount through its revised fees, as contained in the 
attached Schedule of Regulatory Fees, in the most efficient manner 
possible and without undue burden on the public.

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

    3. The IRFA 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.\28\ The IRFA defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' \29\ In addition, the term ``small business'' has the 
same meaning as the term ``small business concern'' under the Small 
Business Act.\30\ 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).\31\ A small organization is 
generally ``any not-for-profit enterprise which is independently owned 
and operated and is not dominant in its field.'' \32\ Nationwide, as of 
1992, there were approximately 275,801 small organizations.\33\ ``Small 
governmental jurisdiction''\34\ generally means ``governments of 
cities, counties, towns, townships, villages, school districts, or 
special districts, with a population of less than 50,000.'' \35\ As of 
1992, there were approximately 85,006 governmental entities in the 
United States.\36\ This number includes 38,978 counties, cities, and 
towns; of these, 37,566, or 96%, have populations of fewer than 
50,000.\37\ The Census Bureau estimates that this ratio is 
approximately accurate for all governmental entities. Thus, of the 
85,006 governmental entities, we estimate that 81,600 (96%) are small 
entities. Below, we further describe and estimate the number of small 
entity licensees and regulatees that may be affected by the proposed 
rules, if adopted.
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    \28\ 5 U.S.C. 603(b)(3).
    \29\ 5 U.S.C. 601(6).
    \30\ 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).
    \31\ Small Business Act, 15 U.S.C. 632 (1996).
    \32\ 5 U.S.C. 601(4).
    \33\ 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).
    \34\ 47 CFR 1.1162
    \35\ 5 U.S.C. 601(5).
    \36\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census 
of Governments.''
    \37\ Id.
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Cable Services or Systems

    4. 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.\38\ 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.\39\
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    \38\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) codes 51321 and 51322.
    \39\ 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).
---------------------------------------------------------------------------

    5. 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.\40\ 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.\41\ Since then, some of 
those companies may have grown to serve over 400,000

[[Page 17331]]

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

    \40\ 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).
    \41\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 
1996 (based on figures for Dec. 30, 1995).
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    6. 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.'' \42\ The Commission 
has determined that there are 68,980,000 subscribers in the United 
States.\43\ Therefore, we estimate that an operator serving fewer than 
689,800 subscribers shall be deemed a small operator, if its annual 
revenues, when combined with the total annual revenues of all of its 
affiliates, do not exceed $250 million in the aggregate.\44\ Based on 
available data, we estimate that the number of cable operators serving 
689,800 subscribers or less totals 1,450.\45\ We do not request nor 
collect information on whether cable system operators are affiliated 
with entities whose gross annual revenues exceed $250,000,000,\46\ 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.
---------------------------------------------------------------------------

    \42\ 47 U.S.C. 543(m)(2).
    \43\ 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.
    \44\ Id. 47 CFR 76.1403(b).
    \45\ FCC Announces New Subscriber Count for the Definition of 
Small Cable Operator, Public Notice, DA-01-0158 (released January 
24, 2001).
    \46\ We do receive such information on a case-by-case basis only 
if a cable operator appeals a local franchise authority's finding 
that the operator does not qualify as a small cable operator 
pursuant to Sec. 76.1403(b) of the Commission's rules. See 47 CFR 
76.1403(d).
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    7. 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),\47\ multipoint distribution systems (MDS),\48\ satellite master 
antenna systems (SMATV), and subscription television services.
---------------------------------------------------------------------------

    \47\ Direct Broadcast Services (DBS) are discussed with the 
international services, infra.
    \48\ Multipoint Distribution Services (MDS) are discussed with 
the mass media services, infra.
---------------------------------------------------------------------------

Common Carrier Services and Related Entities

    8. The most reliable source of information regarding the total 
numbers of certain common carrier and related providers nationwide 
appears to be data the Commission publishes annually in its 
Telecommunications Provider Locator report, which encompasses data 
compiled from FCC Form 499-A Telecommunications Reporting 
Worksheets.\49\ According to data in the most recent report, there are 
5,679 interstate service providers.\50\ 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.
---------------------------------------------------------------------------

    \49\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Telecommunications Provider Locator, Table 1 (November 2001).
    \50\ FCC, Telecommunications Provider Locator at Table 1.
---------------------------------------------------------------------------

    9. We have included small incumbent local exchange carriers (LECs) 
\51\ 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.'' \52\ 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.\53\ 
We have therefore included small incumbent LECs in this IRFA analysis, 
although we emphasize that this IRFA action has no effect on Commission 
analyses and determinations in other, non-RFA contexts.
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    \51\ See 47 U.S.C 251(h) (defining ``incumbent local exchange 
carrier'').
    \52\ 5 U.S.C. 601(3).
    \53\ Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small 
Business Act contains a definition of ``small business concern,'' 
which the RFA incorporates into its own definition of ``small 
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 
601(3) (RFA). SBA regulations interpret ``small business concern'' 
to include the concept of dominance on a national basis. 13 CFR 
121.102(b). Since 1996, out of an abundance of caution, the 
Commission has included small incumbent LECs in its regulatory 
flexibility analyses. See, e.g., Implementation of the Local 
Competition Provisions of the Telecommunications Act of 1996, CC 
Docket, 96-98, First Report and Order, 11 FCC Rcd 15499, 16144-45 
(1996), 61 FR 45476 (Aug. 29, 1996).
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    10. 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.\54\ 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.'' \55\ It seems reasonable to conclude that fewer than 3,497 
telephone service firms are small entity telephone service firms or 
small incumbent LECs that may be affected by the proposed rules, if 
adopted.
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    \54\ 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).
    \55\ See generally 15 U.S.C. 632(a)(1).
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    11. 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.\56\ 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.\57\ 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 the proposed rules, if adopted.
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    \56\ 1992 Census, supra, at Firm Size 1-123.
    \57\ 13 CFR 121.201, NAICS codes 51331, 51333, and 51334.
---------------------------------------------------------------------------

    12. Local Exchange Carriers (LECS), Competitive Access Providers 
(CAPs), Interexchange Carriers (IXCs), Operator Service Providers 
(OSPs), Payphone

[[Page 17332]]

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.\58\ The most reliable source of information that we know 
regarding the number of these carriers nationwide appears to be the 
data that we collect annually in connection with the FCC 499-A 
Telecommunications Reporting Worksheets.\59\
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    \58\ 13 CFR 121.201, NAICS codes 51331, 51333, and 51334.
    \59\ See Telecommunications Provider Locator at Table 1.
---------------------------------------------------------------------------

    According to our most recent data, there are 1,329 incumbent and 
other LECs, 532 CAPs and competitive local exchange carriers (CLECs), 
229 IXCs, 22 OSPs, 936 payphone providers, 32 prepaid calling card 
providers, 38 other toll carriers, and 710 local and toll 
resellers.\60\ Although it seems certain that some of these carriers 
are not independently owned and operated, or have more than 1,500 
employees, we are unable at this time to estimate with greater 
precision the number of these carriers that would qualify as small 
business concerns under the SBA's definition. Therefore, we estimate 
that there are fewer than 1,329 small entity incumbent and other LECs, 
532 CAPs/CLECs, 229 IXCs, 22 OSPs, 936 payphone providers, and 710 
local and toll resellers, 32 prepaid calling card providers, and 38 
other toll carriers that may be affected by the proposed rules, if 
adopted.
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    \60\ Telecommunications Provider Locator at Table 1. The total 
for resellers includes both toll resellers and local resellers.
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International Services

    13. 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).\61\ This definition provides that a small entity is 
expressed as one with $11.0 million or less in annual receipts.\62\ 
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.\63\ The 
Census report does not provide more precise data.
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    \61\ An exception is the Direct Broadcast Satellite (DBS) 
Service, infra.
    \62\ 13 CFR 121.201, NAICS codes 48531, 513322, 51334, and 
51339.
    \63\ 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).
---------------------------------------------------------------------------

    14. International Broadcast Stations. Commission records show that 
there are approximately 19 international high frequency broadcast 
station authorizations. We do not request nor collect annual revenue 
information, and are unable to estimate the number of international 
high frequency broadcast stations that would constitute a small 
business under the SBA definition. However, the Commission estimates 
that only six international high frequency broadcast stations are 
subject to regulatory fee payments.
    15. 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.
    16. Fixed Satellite Transmit/Receive Earth Stations. There are 
approximately 4,303 earth station authorizations, a portion of which 
are Fixed Satellite Transmit/Receive Earth Stations. We do not request 
nor collect annual revenue information, and are unable to estimate the 
number of the earth stations that would constitute a small business 
under the SBA definition.
    17. Fixed Satellite Small Transmit/Receive Earth Stations. There 
are approximately 4,303 earth station authorizations, a portion of 
which are Fixed Satellite Small Transmit/Receive Earth Stations. We do 
not request nor collect annual revenue information, and are unable to 
estimate the number of fixed small satellite transmit/receive earth 
stations that would constitute a small business under the SBA 
definition.
    18. Fixed Satellite Very Small Aperture Terminal (VSAT) Systems. 
These stations operate on a primary basis, and frequency coordination 
with terrestrial microwave systems is not required. Thus, a single 
``blanket'' application may be filed for a specified number of small 
antennas and one or more hub stations. There are 485 current VSAT 
System authorizations. We do not request nor collect annual revenue 
information, and are unable to estimate the number of VSAT systems that 
would constitute a small business under the SBA definition.
    19. Mobile Satellite Earth Stations. There are 21 licensees. We do 
not request nor collect annual revenue information, and are unable to 
estimate the number of mobile satellite earth stations that would 
constitute a small business under the SBA definition.
    20. 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.
    21. Space Stations (Geostationary). There are presently an 
estimated 71 Geostationary Space Station authorizations. We do not 
request nor collect annual revenue information, and are unable to 
estimate the number of geostationary space stations that would 
constitute a small business under the SBA definition.
    22. Space Stations (Non-Geostationary). There are presently six 
Non-Geostationary Space Station authorizations. We do not request nor 
collect annual revenue information, and are unable to estimate the 
number of non-geostationary space stations that would constitute a 
small business under the SBA definition.
    23. Direct Broadcast Satellites. Because DBS provides subscription 
services, DBS falls within the SBA-recognized definition of ``Cable and 
Other Pay Television Services.'' \64\ This definition provides that a 
small entity is one with $11.0 million or less in annual receipts.\65\ 
Currently, there are nine DBS authorizations, though there are only two 
DBS companies in operation at this time. We do not request nor collect 
annual revenue information for DBS services, and are unable to 
determine the number of DBS operators that would constitute a small 
business under the SBA definition.
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    \64\ 13 CFR 121.201, NAICS codes 51321 and 51322.
    \65\ 13 CFR 121.201, NAICS codes 51321 and 51322.
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Mass Media Services

    24. Commercial Radio and Television Services. The proposed rules 
and policies will apply to television broadcasting licensees and radio 
broadcasting licensees.\66\ The SBA

[[Page 17333]]

defines a television broadcasting station that has $10.5 million or 
less in annual receipts as a small business.\67\ Television 
broadcasting stations consist of establishments primarily engaged in 
broadcasting visual programs by television to the public, except cable 
and other pay television services.\68\ Included in this industry are 
commercial, religious, educational, and other television stations.\69\ 
Also included are establishments primarily engaged in television 
broadcasting and which produce taped television program materials.\70\ 
Separate establishments primarily engaged in producing taped television 
program materials are classified under another NAICS number.\71\ There 
were 1,509 television stations operating in the nation in 1992.\72\ 
That number has remained fairly constant as indicated by the 
approximately 1,686 operating television broadcasting stations in the 
nation as of September 30, 2001.\73\ For 1992, \74\ the number of 
television stations that produced less than $10.0 million in revenue 
was 1,155 establishments.\75\ Only commercial stations are subject to 
regulatory fees.
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    \66\ 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).
    \67\ 13 CFR 121.201, NAICS code 51312.
    \68\ 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).
    \69\ 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.
    \70\ 1992 Census, Series UC92-S-1, at Appendix 
A-9.
    \71\ 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).
    \72\ FCC News Release No. 31327 (January 13, 1993); 1992 Census, 
Series UC92-S-1, at Appendix A-9.
    \73\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2001.''
    \74\ 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.
    \75\ 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.
---------------------------------------------------------------------------

    25. Additionally, the SBA defines a radio broadcasting station that 
has $5 million or less in annual receipts as a small business.\76\ A 
radio broadcasting station is an establishment primarily engaged in 
broadcasting aural programs by radio to the public.\77\ Included in 
this industry are commercial, religious, educational, and other radio 
stations.\78\ Radio broadcasting stations, which primarily are engaged 
in radio broadcasting and which produce radio program materials, are 
similarly included.\79\ However, radio stations which are separate 
establishments and are primarily engaged in producing radio program 
material are classified under another NAICS number.\80\ 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.\81\ 
Official Commission records indicate that at total of 11,334 individual 
radio stations were operating in 1992.\82\ As of September 30, 2001, 
Commission records indicate that a total of 13,012 radio stations were 
operating, of which 8,285 were FM stations.\83\ Only commercial 
stations are subject to regulatory fees.
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    \76\ 13 CFR 121.201, NAICS codes 513111 and 513112.
    \77\ 1992 Census, Series UC92-S-1, at Appendix 
A-9.
    \78\ Id.
    \79\ Id.
    \80\ Id.
    \81\ 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.
    \82\ FCC News Release, No. 31327 (Jan. 13, 1993).
    \83\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2001.''
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    26. The rules may affect an estimated total of 1,230 television 
stations, approximately 1,281 of which are considered small 
businesses.\84\ The revised rules will also affect an estimated total 
of 10,819 radio stations, approximately 12,209 of which are small 
businesses.\85\ These estimates may overstate the number of small 
entities because the revenue figures on which they are based do not 
include or aggregate revenues from non-television or non-radio 
affiliated companies. There are also 2,256 low power television 
stations (LPTV).\86\ 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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    \84\ 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.
    \85\ 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.
    \86\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2001.''
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    27. 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.\87\
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    \87\ 13 CFR 121.201, NAICS codes 513111 and 513112.
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    28. The Commission estimates that there are approximately 3,600 
translators and boosters. The Commission does not collect financial 
information on any broadcast facility, and the Department of Commerce 
does not collect financial information on these auxiliary broadcast 
facilities. We believe that most, if not all, of these auxiliary 
facilities could be classified as small businesses by themselves. We 
also recognize that most commercial translators and boosters are owned 
by a parent station which, in some cases, would be covered by the 
revenue definition of small business entity discussed above. These 
stations would likely have annual revenues that exceed the SBA maximum 
to be designated as a small business (either $5 million for a radio 
station or $10.5 million for a TV station). Furthermore, they do not 
meet the Small Business Act's definition of a ``small business 
concern'' because they are not independently owned and operated.\88\
---------------------------------------------------------------------------

    \88\ 15 U.S.C. 632.
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    29. Multipoint Distribution Service (MDS). This service has 
historically provided primarily point-to-multipoint, one-way video 
services to subscribers, and Local Multipoint Distribution Service 
(LMDS).\89\ 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.\90\ In connection with

[[Page 17334]]

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.\91\ The Commission established this 
small business definition in the context of this particular service and 
with the approval of the SBA.\92\ The MDS auction resulted in 67 
successful bidders obtaining licensing opportunities for 493 Basic 
Trading Areas (BTAs).\93\ 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.\94\ 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 Notice.
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    \89\ For purposes of this item, MDS includes single channel 
Multipoint Distribution Service (MDS), Local Multipoint Distribution 
Service (LMDS), and the Multichannel Multipoint Distribution Service 
(MMDS). See 66 FR 36177.
    \90\ 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).
    \91\ 47 CFR 21.961 and 1.2110.
    \92\ 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).
    \93\ 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.
    \94\ 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, 47U.S.C. Section 309(j). For these 
pre-auction licenses, the applicable standard is SBA's small 
business size standard for ``other telecommunications'' (annual 
receipts of $11 million or less). See 13 CFR 121.201.
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Wireless and Commercial Mobile Services

    30. 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.\95\ 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.\96\ Even if all twelve of these firms were cellular 
telephone companies, nearly all cellular carriers were small businesses 
under the SBA's definition. In addition, we note that there are 1,758 
cellular licenses; however, a cellular licensee may own several 
licenses. According to the November 2001 Telecommunications Provider 
Locater, 858 wireless telephony providers reported that they were 
engaged in the provision of either cellular service, Personal 
Communications Service (PCS) services, and SMR telephony carriers, 
which are placed together in the data.\97\ We do not have data 
specifying the number of these carriers that are not independently 
owned and operated or have more than 1,500 employees, and are unable at 
this time to estimate with greater precision the number of cellular 
service carriers that would qualify as small business concerns under 
the SBA's definition. We estimate that there are fewer than 858 small 
wireless service providers that may be affected by the proposed rules, 
if adopted.
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    \95\ 13 CFR 121.201, NAICS code 513322.
    \96\ 1992 Census, Series UC92-S-1, at Table 5, NAICS code 
513322.
    \97\ Telecommunications Provider Locater, Table 1 (November 
2001).
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    31. 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.\98\ 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.\99\ 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.
---------------------------------------------------------------------------

    \98\ 13 CFR 121.201, NAICS code 513322.
    \99\ 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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    32. 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.\100\ 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.\101\ The SBA has approved these 
definitions.\102\ Auctions of Phase II licenses commenced on September 
15, 1998, and closed on October 22, 1998.\103\ 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.\104\ 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.\105\
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    \100\ 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-
70, at paragraphs 291-295 (1997).
    \101\ 220 MHz Third Report and Order, 12 FCC Rcd at 11068-69, 
paragraph 291.
    \102\ See Letter to D. Phython, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(January 6, 1998).
    \103\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Public Notice, 14 FCC Rcd 605 (1998).
    \104\ 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).
    \105\ ``Phase II 220 MHz Service Spectrum Auction Closes'', 
Public Notice, 14 FCC Rcd 11218 (1999).
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    33. 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.\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

[[Page 17335]]

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.\107\ 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.\108\
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    \106\ 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).
    \107\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Report No. WT 98-36 (Wireless Telecommunications Bureau, 
October 23, 1998).
    \108\ ``700 MHz Guard Bands Auction Closes,'' Public Notice, DA 
01-478 (rel. February 22, 2001).
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    34. Private and Common Carrier Paging. In the Paging Third Report 
and Order, we adopted criteria for defining small businesses and very 
small businesses for purposes of determining their eligibility for 
special provisions such as bidding credits and installment 
payments.\109\ We have defined a small business as an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues not exceeding $15 million for the preceding three years. 
Additionally, a very small business is defined as an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues that are not more than $3 million for the preceding 
three years.\110\ The SBA has approved these definitions.\111\ An 
auction of Metropolitan Economic Area licenses commenced on February 
24, 2000, and closed on March 2, 2000.\112\ Of the 985 licenses 
auctioned, 440 were sold. Fifty-seven companies claiming small business 
status won. At present, there are approximately 24,000 Private-Paging 
site-specific licenses and 74,000 Common Carrier Paging licenses. 
According to the most recent data in the Telecommunications Provider 
Locator, 608 carriers reported that they were engaged in the provision 
of either paging or ``other mobile'' services, which are placed 
together in the data.\113\ We do not have data specifying the number of 
these carriers that are not independently owned and operated or have 
more than 1,500 employees, and therefore are unable at this time to 
estimate with greater precision the number of paging carriers that 
would qualify as small business concerns under the SBA's definition. 
Consequently, we estimate that there are fewer than 608 small paging 
carriers that may be affected by these revised rules. We estimate that 
the majority of private and common carrier paging providers would 
qualify as small entities under the SBA definition.
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    \109\ 220 MHz Third Report and Order, 62 FR 16004 (April 3, 
1997), at paragraphs 291-295.
    \110\ 700 MHz Guard Band Auction Closes,'' Public Notice, 15 FCC 
Rcd 18026 (2000).
    \111\ ``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).
    \112\ ``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).
    \113\ See Telecommunications Provider Locater at Table 1 
(November 2001).
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    35. 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.\114\ 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.\115\ These 
regulations defining ``small entity'' in the context of broadband PCS 
auctions have been approved by the SBA.\116\ No small businesses within 
the SBA-approved definition bid successfully for licenses in Blocks A 
and B. There were 90 winning bidders that qualified as small entities 
in the Block C auctions. A total of 93 small and very small business 
bidders won approximately 40% of the 1,479 licenses for Blocks D, E, 
and F.\117\ On March 23, 1999, the Commission re-auctioned 347 C, D, E, 
and F Block licenses; there were 48 small business winning bidders. 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.\118\ The SBA 
approved this definition.''\119\ Based on this information, we conclude 
that the number of small broadband PCS licensees will include the 90 
winning C Block bidders and the 93 qualifying bidders in the D, E, and 
F blocks, plus the 48 winning bidders in the re-auction, for a total of 
231 small entity PCS providers as defined by the SBA and the 
Commission's auction rules. On January 26, 2001, the Commission 
completed the auction of 422 C and F Broadband PCS licenses in Auction 
No. 35. Of the 35 winning bidders in this auction, 29 qualified as 
small or very small businesses.
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    \114\ See generally ``929 and 931 MHz Paging Auction Closes,'' 
Public Notice, 15 FCC Rcd 4858 (2000).
    \115\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket 
No. 96-59 Sections 60 (released June 24, 1996), 61 FR 33859 (July 1, 
1996).
    \116\ See, e.g., Implementation of Section 309(j) of the 
Communications Act--Competitive Bidding, PP Docket No. 93-253, Fifth 
Report and Order, 9 FCC Rcd 5532, 5581-84 (1994).
    \117\ FCC News, Broadband PCS, D, E and F Block Auction Closes, 
No. 71744 (released January 14, 1997).
    \118\ 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).
    \119\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
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    36. 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.\120\ 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.\121\ In the future, 
the Commission will auction 459

[[Page 17336]]

licenses to serve Metropolitan Trading Areas (MTAs) and 408 response 
channel licenses. There is also one megahertz of narrowband PCS 
spectrum that has been held in reserve and that the Commission has not 
yet decided to release for licensing. The Commission cannot predict 
accurately the number of licenses that will be awarded to small 
entities in future auctions. However, four of the 16 winning bidders in 
the two previous narrowband PCS auctions were small businesses, as that 
term was defined under the Commission's Rules. The Commission assumes, 
for purposes of this IRFA, that a large portion of the remaining 
narrowband PCS licenses will be awarded to small entities. The 
Commission also assumes that at least some small businesses will 
acquire narrowband PCS licenses by means of the Commission's 
partitioning and disaggregation rules.
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    \120\ 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).
    \121\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
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    37. Rural Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Rural Radiotelephone 
Service.\122\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio Systems (BETRS).\123\ We will use 
the SBA's definition applicable to radiotelephone (wireless) companies, 
i.e., an entity employing no more than 1,500 persons.\124\ 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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    \122\ The service is defined in Sec. 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \123\ BETRS is defined in Secs. 22.757 and 22.759 of the 
Commission's Rules, 47 CFR 22.757 and 22.759.
    \124\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
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    38. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service.\125\ We will use the SBA's definition 
applicable to radiotelephone (wireless) companies, i.e., an entity 
employing no more than 1,500 persons.\126\ 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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    \125\ The service is defined in Sec. 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \126\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
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    39. 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.\127\ The SBA has approved this small business size standard for 
the 800 MHz and 900 MHz auctions.\128\ 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.\129\ 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.\130\ An auction of 800 MHz SMR geographic area 
licenses for the General Category channels began on August 16, 2000 and 
was completed on September 1, 2000. Of the 1,050 licenses offered in 
that auction, 1,030 licenses were sold. Eleven winning bidders for 
licenses for the General Category channels in the 800 MHz SMR band 
qualified as small business under the $15 million size standard. In an 
auction completed on December 5, 2000, a total of 2,800 Economic Area 
licenses in the lower 80 channels of the 800 MHz SMR service were sold. 
Of the 22 winning bidders, 19 claimed small business status. Thus, 40 
winning bidders for geographic licenses in the 800 MHz SMR band 
qualified as small businesses. In addition, there are numerous 
incumbent site-by-site SMR licenses on the 800 and 900 MHz band.
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    \127\ 47 CFR 90.814(b)(1).
    \128\ See Letter to Thomas J. Sugrue, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(August 10, 1999).
    \129\ See Letter to Daniel B. Phython, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(October 27, 1997).
    \130\ Id.
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    40. 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.
    41. 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.
    42. The Commission is unable at this time to estimate the number of 
small businesses which could be impacted by the rules. The Commission's 
1994 Annual Report on PLMRs \131\ indicates that at the end of fiscal 
year 1994 there were 1,087,267 licensees operating 12,481,989 
transmitters in the PLMR bands below 512 MHz. Because any entity 
engaged in a commercial activity is eligible to hold a PLMR license, 
the revised rules in this context could potentially impact every small 
business in the United States.
---------------------------------------------------------------------------

    \131\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at paragraph 116.
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    43. 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.
    44. 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.\132\
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    \132\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
---------------------------------------------------------------------------

    45. Most applicants for recreational licenses are individuals. 
Approximately 581,000 ship station licensees and 131,000 aircraft 
station licensees operate domestically and are not subject to the radio 
carriage requirements of any statute or treaty. For purposes of our 
evaluations and conclusions in this IRFA, we estimate that there may be 
at least 712,000 potential licensees which are individuals or are small 
entities, as that term is defined by the SBA. We

[[Page 17337]]

estimate that only 16,800 will be subject to FY 2001 regulatory fees.
    46. Fixed Microwave Services. Microwave services include common 
carrier,\133\ private-operational fixed,\134\ and broadcast auxiliary 
radio services.\135\ At present, there are approximately 22,015 common 
carrier fixed licensees and 61,670 private operational-fixed licensees 
and broadcast auxiliary radio licensees in the microwave services. The 
Commission has not yet defined a small business with respect to 
microwave services. For purposes of this IRFA, we will use the SBA's 
definition applicable to radiotelephone (wireless) companies--i.e., an 
entity with no more than 1,500 persons.\136\ 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.
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    \133\ 47 CFR 101 et seq. (formerly, part 21 of the Commission's 
Rules).
    \134\ 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.
    \135\ 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.
    \136\ 13 CFR 121.201, NAICS codes 513321, 513322, 51333.
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    47. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, highway 
maintenance, and emergency medical services.\137\ There are a total of 
approximately 127,540 licensees within these services. Governmental 
entities \138\ as well as private businesses comprise the licensees for 
these services. As indicated supra in paragraph four of this IRFA, all 
governmental entities with populations of less than 50,000 fall within 
the definition of a small entity.\139\ All licensees in this category 
are exempt from the payment of regulatory fees.
---------------------------------------------------------------------------

    \137\ 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.
    \138\ 47 CFR 1.1162.
    \139\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

    48. 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).\140\ 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.
---------------------------------------------------------------------------

    \140\ Licensees in the Citizens Band (CB) Radio Service, General 
Mobile Radio Service (GMRS), Radio Control (R/C) Radio Service and 
Family Radio Service (FRS) are governed by Subpart D, Subpart A, 
Subpart C, and Subpart B, respectively, of part 95 of the 
Commission's Rules. 47 CFR 95.401 through 95.428; 95.1 through 
95.181; 95.201 through 95.225; 47 CFR 95.191 through 95.194.
---------------------------------------------------------------------------

    49. 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.\141\ 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.
---------------------------------------------------------------------------

    \141\ This service is governed by subpart I of part 22 of the 
Commission's Rules. See 47 CFR 22.1001 through 22.1037.
---------------------------------------------------------------------------

    50. 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.\142\ 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.
---------------------------------------------------------------------------

    \142\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
---------------------------------------------------------------------------

    51. 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.\143\ An additional 
classification for ``very small business'' was added and is defined as 
an entity that, together with their affiliates, has average gross 
revenues of not more than $15 million for the preceding three calendar 
years.\144\ 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.
---------------------------------------------------------------------------

    \143\ 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).
    \144\ Id.
---------------------------------------------------------------------------

    52. 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.\145\ 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.\146\ These regulations defining ``small entity'' in the 
context of LMDS auctions have been

[[Page 17338]]

approved by the SBA.\147\ 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 small business 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.
---------------------------------------------------------------------------

    \145\ See Local Multipoint Distribution Service, Second Report 
and Order, 62 FR 23148, April 29, 1997.
    \146\ Id.
    \147\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(January 6, 1998).
---------------------------------------------------------------------------

    53. 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.\148\ 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.\149\ 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.\150\ We cannot estimate, however, the number of licenses that 
will be won by entities qualifying as small or very small businesses 
under our rules in future auctions of 218-219 MHz spectrum. Given the 
success of small businesses in the previous auction, and the above 
discussion regarding the prevalence of small businesses in the 
subscription television services and message communications industries, 
we assume for purposes of this IRFA that in future auctions, all of the 
licenses may be awarded to small businesses if these proposed rules 
were adopted.
---------------------------------------------------------------------------

    \148\ 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).
    \149\ 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).
    \150\ 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).
---------------------------------------------------------------------------

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

    54. 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.\151\ 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 record.
---------------------------------------------------------------------------

    \151\ 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.
---------------------------------------------------------------------------

    55. 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.
    56. 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 penalty of 25 percent in addition to the 
required fee.\152\ If payment is not received, new or pending 
applications may be dismissed, and existing authorizations may be 
subject to rescission.\153\ Further, in accordance with the Debt 
Collection Improvement Act of 1996, federal agencies may bar a person 
or entity from obtaining a federal loan or loan insurance guarantee if 
that person or entity fails to pay a delinquent debt owed to any 
federal agency.\154\ 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 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.\155\
---------------------------------------------------------------------------

    \152\ 47 CFR 1.1164.
    \153\ 47 CFR 1.1164(c).
    \154\ Public Law 104-134, 110 Stat. 1321 (1996).
    \155\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

    57. The Commission's rules currently provide for relief in 
exceptional circumstances. Persons or entities may request a waiver, 
reduction or deferment of payment of the regulatory fee.\156\ 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

[[Page 17339]]

Commission will defer payment in response to a request filed with the 
appropriate supporting documentation.
---------------------------------------------------------------------------

    \156\ 47 CFR 1.1166.
---------------------------------------------------------------------------

IV. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    58. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives: (1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities. As described in Section IV of this IRFA, supra, we have 
created procedures in which all fee-filing licensees and regulatees use 
a single form, FCC Form 159, and have described in plain language the 
general filing requirements. We have also created Attachment F, infra, 
which gives ``Detailed Guidance on Who Must Pay Regulatory Fees.'' 
Because the collection of fees is statutory, our efforts at proposing 
alternatives are constrained and, throughout these annual fee 
proceedings, have been largely directed toward simplifying the 
instructions and necessary procedures for all filers. We 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.
    59. 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 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) 2002.\157\ As noted, we seek comment on 
the proposed methodology for implementing these statutory requirements 
and any other potential impact of these proposals on small entities.
---------------------------------------------------------------------------

    \157\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    60. 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 Notice of Proposed Rulemaking minimizes this impact by 
limiting the amount of increase and shifting costs to other services 
which, for the most part, are larger entities.
    61. Several categories of licensees and regulatees are exempt from 
payment of regulatory fees. See, e.g., footnote 148, supra, and 
Attachment F of the Notice of Proposed Rulemaking, infra.

V. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    62. None.

Attachment B--Sources of Payment Unit Estimates for FY 2002

    In order to calculate individual service fees for FY 2002, we 
adjusted FY 2001 payment units for each service to more accurately 
reflect expected FY 2002 payment liabilities. We obtained our updated 
estimates through a variety of means. For example, we used Commission 
licensee data bases, actual prior year payment records and industry and 
trade association projections when available. We tried to obtain 
verification for these estimates from multiple sources and, in all 
cases, we compared FY 2002 estimates with actual FY 2001 payment units 
to ensure that our revised estimates were reasonable. Where 
appropriate, we adjusted and/or rounded our final estimates to take 
into consideration the fact that certain variables that impact on the 
number of payment units cannot yet be estimated exactly. These include 
an unknown number of waivers and/or exemptions that may occur in FY 
2002 and the fact that, in many services, the number of actual 
licensees or station operators fluctuates from time to time due to 
economic, technical or other reasons. Therefore, when we note, for 
example, that our estimated FY 2002 payment units are based on FY 2001 
actual payment units, it does not necessarily mean that our FY 2002 
projection is exactly the same number as FY 2001. It means that we have 
either rounded the FY 2002 number or adjusted it slightly to account 
for these variables.

------------------------------------------------------------------------
         Fee category              Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave,  Based on Wireless Telecommunications
 218-219 MHz,\158\ Marine       Bureau (WTB) projections of new
 (Ship & Coast), Aviation       applications and renewals taking into
 (Aircraft & Ground), GMRS,     consideration existing Commission
 Amateur Vanity Call Signs,     licensee data bases. Aviation (Aircraft)
 Domestic Public Fixed.         and Marine (Ship) estimates have been
                                adjusted to take into consideration the
                                licensing of portions of these services
                                on a voluntary basis.
CMRS Mobile Services.........  Based on Wireless Telecommunications
                                Bureau estimates.
CMRS Messaging Services......  Based on Wireless Telecommunications
                                Bureau estimates.
AM/FM Radio Stations.........  Based on estimates from Mass Media Bureau
                                estimates.
UHF/VHF Television Stations..  Based on Mass Media Bureau estimates and
                                actual FY 2001 payment units.
AM/FM/TV Construction Permits  Based on Mass Media Bureau estimates and
                                actual FY 2001 payment units.
LPTV, Translators and          Based on actual FY 2001 payment units.
 Boosters.
Auxiliaries..................  Based on Wireless Telecommunications
                                Bureau estimates.
MDS/LMDS/MMDS................  Based on Mass Media Bureau estimates.
Cable Antenna Relay Service    Based on Cable Services Bureau estimates.
 (CARS).
Cable Television System        Based on Cable Services Bureau and
 Subscribers.                   industry estimates of subscribership.
Interstate Telecommunication   Based on actual FY 2001 interstate
 Service Providers.             revenues reported on Telecommunications
                                Reporting Worksheet, adjusted for FY
                                2002 revenue growth for industry as
                                estimated by Common Carrier Bureau.
Earth Stations...............  Based on International Bureau estimates.
Space Stations (GSOs & NGSOs)  Based on International Bureau licensee
                                data bases.
International Bearer Circuits  Based on International Bureau estimates.

[[Page 17340]]

 
International HF Broadcast     Based on International Bureau estimates.
 Stations, International
 Public Fixed Radio Service.
------------------------------------------------------------------------
\158\ The Wireless Telecommunications Bureau's staff advises that they
  anticipate receiving only 25 applications for 218-219 MHz (formerly
  IVDS) in FY 2001.

Attachment Calculation of FY 2002 Revenue Requirements and Pro-Rata 
FEES Attachment C

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Computed new   Rounded new
                                                    FY 2002 payment     Payment       FY 2001     Pro-rated FY     FY 2002       FY 2002     Expected FY
                   Fee category                          units           years        revenue     2002 revenue   regulatory    regulatory   2002 revenue
                                                                                     estimate     requirement        fee           fee
-------------------------------------------------------------------------------------------------------**-----------------------------------------------
PLMRS (Exclusive Use)............................             4,100            10       275,000        300,575             7             5       205,000
PLMRS (Shared use)...............................            43,500            10     2,900,000      3,169,700             7             5     2,175,000
Microwave........................................            11,500            10     1,195,000      1,306,135            11            10     1,150,000
218-219 MHz (Formerly IVDS)......................                 5            10         1,250          1,366            27            25         1,250
Marine (Ship)....................................             5,200            10       550,000        601,150            12            10       520,000
GMRS.............................................             3,180             5        50,000         54,650             3             5        79,500
Aviation (Aircraft)..............................             2,700            10       175,000        191,275             7             5       135,000
Marine (Coast)...................................               900            10        65,000         71,045             8            10        90,000
Aviation (Ground)................................             2,000             5        85,000         92,905             9            10       100,000
Amateur Vanity Call Signs........................             9,000            10       120,000        131,160          1.46          1.45       130,500
AM Class A.......................................                76             1       146,300        159,906         2,104         2,100       159,600
AM Class B.......................................             1,672             1     1,806,300      1,974,286         1,181         1,175     1,964,600
AM Class C.......................................               990             1       618,760        676,305           683           685       678,150
AM Class D.......................................             1,933             1     2,033,850      2,222,998         1,150         1,150     2,222,950
FM Classes A, B1 & C3............................             3,192             1     4,160,000      4,546,880         1,424         1,425     4,548,600
FM Classes B, C, C1 & C2.........................             2,956             1     5,166,300      5,646,766         1,910         1,900     5,616,400
AM Construction Permits..........................                48             1        16,240         17,750           370           370        17,760
FM Construction Permits..........................               202             1       277,500        303,308         1,502         1,500       303,000
Satellite TV.....................................               128             1        93,980        102,720           803           805       103,040
Satellite TV Construction Permit.................                 5             1         1,920          2,099           420           420         2,100
VHF Markets 1-10.................................                44             1     1,894,200      2,070,361        47,054        47,050     2,070,200
VHF Markets 11-25................................                61             1     1,936,675      2,116,786        34,701        34,700     2,116,700
VHF Markets 26-50................................                76             1     1,642,025      1,794,733        23,615        23,625     1,795,500
VHF Markets 51-100...............................               114             1     1,581,250      1,728,306        15,161        15,150     1,727,100
VHF Remaining Markets............................               215             1       691,025        755,290         3,513         3,525       757,875
VHF Construction Permits.........................                22             1        55,350         60,498         2,750         2,750        60,500
UHF Markets 1-10.................................                97             1     1,136,250      1,241,921        12,803        12,800     1,241,600
UHF Markets 11-25................................                98             1       922,500      1,008,293        10,289        10,300     1,009,400
UHF Markets 26-50................................               129             1       778,250        850,627         6,594         6,600       851,400
UHF Markets 51-100...............................               190             1       672,375        734,906         3,868         3,875       736,250
UHF Remaining Markets............................               206             1       201,250        219,966         1,068         1,075       221,450
UHF Construction Permits.........................                59             1       280,000        306,040         5,187         5,175       305,325
Auxiliaries......................................            24,000             1       270,000        295,110            12            10       240,000
International HF Broadcast.......................                 6             1         2,720          2,973           495           495         2,970
LPTV/Translators/Boosters........................             2,800             1       823,500        900,086           321           320       896,000
CARS.............................................             1,600             1        93,500        102,196            64            65       104,000
Cable Systems....................................        68,980,000             1    33,431,844     36,541,005          0.53          0.53    36,541,005
Interstate Telecommunication Service Providers...    66,544,000,000             1    93,387,376    102,072,402       0.00153       0.00153   102,072,402
CMRS Mobile Services (Cellular/Public Mobile)....       125,000,000             1    27,404,520     29,953,140          0.24          0.24    29,953,140
CMRS Messaging Services..........................        23.600,000             1     1,625,054      1,776,184          0.08          0.08     1,776,184
MDS/MMDS/LMDS....................................             2,300             1       900,000        983,700           428           430       989,000
International Bearer Circuits....................         2,830,000             1     4,202,255      4,593,065          1.62             2     5,660,000
International Public Fixed.......................                 1             1         1,275          1,394         1,394         1,400         1,400
Earth Stations...................................             3,873             1       501,120        547,724           141           140       542,220
Space Stations (Geostationary)...................                71             1     6,476,250      7,078,541        99,698        99,700     7,078,700
Space Stations (Non-geostationary)...............                 5             1       566,550        619,239       123,848       123,850       619,250
      Total Estimated Revenue to be Collected....                                   201,214,514    219,927,464                               219,572,022
      Total Revenue Requirement..................                                                  218,757,000                               218,757,000

[[Page 17341]]

 
          Difference.............................                                                    1,170,464                                  815,022
--------------------------------------------------------------------------------------------------------------------------------------------------------
** 1.093 factor applied based on the amount Congress designated for recovery through regulatory fees (Public Law 107-77 and 47 U.S.C. 159(a)(2)).

Attachment D--FY 2002 Schedule of Regulatory Fees (Proposed)

------------------------------------------------------------------------
                                                       Annual regulatory
                     Fee category                        fee (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).                  5
Microwave (per license) (47 CFR part 101)............                 10
218-219 MHz (Formerly Interactive Video Data Service)                 25
 (per license) (47 CFR part 95)......................
Marine (Ship) (per station) (47 CFR part 80).........                 10
Marine (Coast) (per license) (47 CFR part 80)........                 10
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                   1.45
 part 97)............................................
CMRS Mobile Services (per unit) (47 CFR parts 20, 22,                .24
 24, 27, 80 and 90)..................................
CMRS Messaging Services (per unit) (47 CFR parts 20,                 .08
 22, 24 and 90)......................................
Multipoint Distribution Services (MMDS, LMDS & MDS)                  430
 (per call sign) (47 CFR part 21)....................
AM Radio Construction Permits........................                370
FM Radio Construction Permits........................              1,500
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10.....................................             47,050
    Markets 11-25....................................             34,700
    Markets 26-50....................................             23,625
    Markets 51-100...................................             15,150
    Remaining Markets................................              3,525
    Construction Permits.............................              2,750
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10.....................................             12,800
    Markets 11-25....................................             10,300
    Markets 26-50....................................              6,600
    Markets 51-100...................................              3,875
    Remaining Markets................................              1,075
    Construction Permits.............................              5,175
Satellite Television Stations (All Markets)..........                805
Construction Permits--Satellite Television Stations..                420
Low Power TV, TV/FM Translators & Boosters (47 CFR                   320
 part 74)............................................
Broadcast Auxiliary (47 CFR part 74).................                 10
CARS (47 CFR part 78)................................                 65
Cable Television Systems (per subscriber) (47 CFR                    .53
 part 76)............................................
Interstate Telecommunication Service Providers (per               .00153
 revenue dollar).....................................
Earth Stations (47 CFR part 25)......................                140
Space Stations (per operational station in                        99,700
 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-                   123,850
 geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits (per active 64KB                         2
 circuit)............................................
International Public Fixed (per call sign) (47 CFR                 1,400
 part 23)............................................
International (HF) Broadcast (47 CFR part 73)........                495
------------------------------------------------------------------------


                                          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...........................          500          375          275          325          375          500
20,001--50,000....................          925          725          375          525          725          925
50,001--125,000...................        1,500          975          525          775          975        1,500
125,001--400,000..................        2,250        1,575          800          950        1,575        2,250
400,001--1,000,000................        3,125        2,525        1,425        1,700        2,525        3,125
>1,000,000........................        4,975        4,100        2,075        2,625        4,100        4,975
----------------------------------------------------------------------------------------------------------------


[[Page 17342]]

Attachment E--Comparison Between FY 2001 & FY 2002 Proposed 
Regulatory Fees

----------------------------------------------------------------------------------------------------------------
                                                                      Annual                          Annual
                          Fee category                            regulatory fee  NPRM  proposed  regulatory fee
                                                                      FY 2001       fee FY 2002       FY 2002
----------------------------------------------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)............               5               5  ..............
Microwave (per license) (47 CFR part 101).......................               5              10  ..............
218-219 MHz (Formerly Interactive Video Data Service) (per                    10              25  ..............
 license) (47 CFR part 95)......................................
Marine (Ship) (per station) (47 CFR part 80)....................              10              10  ..............
Marine (Coast) (per license) (47 CFR part 80)...................               5              10  ..............
General Mobile Radio Service (per license) (47 CFR part 95).....               5               5  ..............
Rural Radio (47 CFR part 22) (previously listed under Land                     5               5  ..............
 Mobile)........................................................
PLMRS (Shared Use) (47 CFR part 90).............................               5               5  ..............
Aviation (Aircraft) (per station) (47 CFR part 87)..............               5               5  ..............
Aviation (Ground) (per license) (47 CFR part 87)................              10              10  ..............
Amateur Vanity Call Signs (per call sign) (47 CFR part 97)......            1.20            1.45  ..............
CMRS Mobile Services (per unit) (47 CFR parts 20, 22, 24, 27, 80             .27             .24  ..............
 and 90)........................................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and              .05             .08  ..............
 90)............................................................
Multipoint Distribution Services (Includes MMDS, LMDS & MDS)                 450             430  ..............
 (per call sign) (47 CFR part 21)...............................
AM Construction Permits.........................................             280             370  ..............
FM Construction Permits.........................................             925           1,500  ..............
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10................................................          45,100          47,050  ..............
    Markets 11-25...............................................          32,825          34,700  ..............
    Markets 26-50...............................................          21,325          23,625  ..............
    Markets 51-100..............................................          13,750          15,150  ..............
    Remaining Markets...........................................           3,275           3,525  ..............
    Construction Permits........................................           3,075           2,750  ..............
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10................................................          15,150          12,800  ..............
    Markets 11-25...............................................          12,300          10,300  ..............
    Markets 26-50...............................................           7,075           6,600  ..............
    Markets 51-100..............................................           4,075           3,875  ..............
    Remaining Markets...........................................           1,150           1,075  ..............
    Construction Permits........................................           4,000           5,175  ..............
Satellite Television Stations (All Markets).....................             740             805  ..............
Construction Permits--Satellite Television Stations.............             480             420  ..............
Low Power TV, TV/FM Translators & Boosters (47 CFR part 74).....             305             320  ..............
Broadcast Auxiliary (47 CFR part 74)............................              10              10  ..............
CARS (47 CFR part 78)...........................................              55              65  ..............
Earth Stations (47 CFR part 25).................................             180             140  ..............
Cable Television Systems (per subscriber) (47 CFR part 76)......             .49             .53  ..............
Interstate Telecommunication Service Providers (per revenue               .00132          .00153  ..............
 dollar)........................................................
Space Stations (per operational station in geostationary orbit)           98,125          99,700  ..............
 (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               94,425         123,850  ..............
 orbit) (47 CFR part 25)........................................
International Bearer Circuits (per active 64KB circuit).........               5               2  ..............
International Public Fixed (per call sign) (47 CFR part 23).....           1,275           1,400  ..............
International (HF) Broadcast (47 CFR part 73)...................             680             495  ..............
----------------------------------------------------------------------------------------------------------------


                                      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
----------------------------------------------------------------------------------------------------------------


                                      FY 2002 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...........................          500          375          275          325          375          500
20,001--50,000....................          925          725          375          525          725          925

[[Page 17343]]

 
50,001--125,000...................        1,500          975          525          775          975        1,500
125,001--400,000..................        2,250        1,575          800          950        1,575        2,250
400,001--1,000,000................        3,125        2,525        1,425        1,700        2,525        3,125
>1,000,000........................        4,975        4,100        2,075        2,625        4,100        4,975
----------------------------------------------------------------------------------------------------------------

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,\159\ as modified in the instant NPRM. 
Where regulatory fee categories need interpretation or clarification, 
we have relied on the legislative history of section 9, our own 
experience in establishing and regulating the Schedule of Regulatory 
Fees for Fiscal Years (FY) 1994 through 2001, 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.\160\
---------------------------------------------------------------------------

    \159\ 47 U.S.C. 159(g).
    \160\ 47 U.S.C. 159(b)(2), (3).
---------------------------------------------------------------------------

    2. Exemptions. Governments and nonprofit entities are exempt from 
paying regulatory fees and should not submit payment. A nonprofit 
entity is required to have on file with the Commission an IRS 
Determination Letter documenting that it is exempt from taxes under 
section 501 of the Internal Revenue Code or the 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.\161\ 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.
---------------------------------------------------------------------------

    \161\ 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).\162\ For FY 2002, 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.\163\ The total regulatory fee due is 
$50 for the ten-year term.
---------------------------------------------------------------------------

    \162\ 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.
    \163\ Although this fee category includes licenses with ten-year 
terms, the estimated volume of ten-year license applications in FY 
2000 is less than one-tenth of one percent and, therefore, is 
statistically insignificant.
---------------------------------------------------------------------------

    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 2002, Microwave licensees will pay a $10 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 $100 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 anticipated receiving 25 applications in the 218-219 MHz 
service during FY 2001. For FY 2002, we anticipate receiving five 
applications and propose that the annual regulatory fee for 218-219 MHz 
licensees be set at $25 per application. The total regulatory fee due 
would be $250 for the ten-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

[[Page 17344]]

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 2002, parties required to be licensed 
and those choosing to be licensed for Marine (Ship) Stations will pay a 
$10 annual regulatory fee per station, payable for an entire ten-year 
license term at the time of application for a new, renewal, or 
reinstatement license. The total regulatory fee due is $100 for the 
ten-year license term.
    8. Marine (Coast) Service: This service includes land-based 
stations in the maritime services, authorized under part 80 of the 
Commission's Rules, to provide communications services to ships and 
other watercraft in coastal and inland waterways. For FY 2002, 
licensees of Marine (Coast) Stations will pay a $10 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 $100 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 2002, 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 2002, 
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 2002, 
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 2002, GMRS licensees will pay a $5 annual regulatory fee per 
license, payable for an entire five-year license term at the time of 
application for a new, renewal or reinstatement license. The total 
regulatory fee due is $25 per license for the five-year license term.
c. Amateur Radio Vanity Call Signs
    13. Amateur Vanity Call Signs: This category covers voluntary 
requests for specific call signs in the Amateur Radio Service 
authorized under part 97 of the Commission's Rules. Applicants for 
Amateur Vanity Call-Signs will continue to pay a $1.20 annual 
regulatory fee per call sign, as prescribed in the FY 2001 fee 
schedule, payable for an entire ten-year license term at the time of 
application for a vanity call sign until the FY 2002 fee schedule 
becomes effective. The total regulatory fee due would be $12 per 
license for the ten-year license term.\164\ For FY 2002, Amateur Vanity 
Call Sign applicants will pay a $1.45 annual regulatory fee per call 
sign, payable for an entire ten-year term at the time of application 
for a new, renewal or reinstatement license. The total regulatory fee 
due is $14.50 per call sign for the ten-year license term.
---------------------------------------------------------------------------

    \164\ Section 9(h) exempts ``amateur radio operator licenses 
under part 97 of the Commission's rules (47 CFR part 97)'' from the 
requirement. However, section 9(g)'s fee schedule explicitly 
includes ``Amateur vanity call signs'' as a category subject to the 
payment of a regulatory fee.
---------------------------------------------------------------------------

d. Commercial Wireless Radio Services
    14. Commercial Mobile Radio Services (CMRS) Mobile Services: The 
Commercial Mobile Radio Service (CMRS) is 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); \165\ 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 2002, the regulatory fee is $.24 per 
unit.
---------------------------------------------------------------------------

    \165\ This category does not include licensees of private 
shared-use 220 MHz and 470 MHz and above in the Specialized Mobile 
Radio (SMR) service who have elected to remain non-commercial. Those 
who have elected not to change to the Commercial Mobile Radio 
Service (CMRS) are referred to paragraph 4 of this Attachment.
---------------------------------------------------------------------------

    15. Commercial Mobile Radio Services (CMRS) Messaging Services: The 
Commercial Mobile Radio Service (CMRS) is an ``umbrella'' descriptive 
term attributed to various existing

[[Page 17345]]

narrowband services authorized to provide interconnected mobile radio 
services for profit to the public, or to such classes of eligible users 
as to be effectively available to a substantial portion of the public. 
CMRS Messaging Services include certain licensees which formerly were 
licensed as part of the Private Radio Services (e.g., Private Paging 
and Radiotelephone Service), licensees formerly licensed as part of the 
Common Carrier Radio Services (e.g., Public Mobile One-Way Paging), 
licensees of Narrowband Personal Communications Service (PCS) (e.g., 
one- way and two-way paging), and 220-222 MHz Band and Interconnected 
Business Radio Service. In addition, this category includes small SMR 
systems authorized for use of less than 10 MHz of bandwidth. While 
specific rules pertaining to each covered service remain in separate 
parts 22, 24 and 90, general rules for CMRS are contained in part 20. 
Each licensee in the CMRS Messaging Services will pay an annual 
regulatory fee for each unit (pager, telephone number, or mobile) 
assigned to its customers, including resellers of its services. For FY 
2002, the regulatory fee is $.08 per unit.
    16. Finally, with regard to our definition of a CMRS payment units, 
we clarify that fees are assessable on each CMRS subscriber considered 
``active'' as of December 31, 2001. Examples of CMRS subscribers 
include: subscribers of terrestrial mobile telephone services, 
subscribers of one-way or two-way paging services, and subscribers of 
other wireless messaging services that are capable of transmitting and/
or receiving data communications. A ``feeable'' CMRS payment unit is a 
CMRS subscriber that has possession of a mobile device that can 
transmit or receive voice or non-voice communications, or a CMRS 
subscriber has a contractual agreement for the provision of a CMRS 
service. 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. 
Further, if John Doe purchases a pager and obtains paging services from 
a paging reseller which resells services from Paging Licensee X, Paging 
Licensee X is still responsible for paying the applicable regulatory 
fee for this CMRS payment unit.

2. Mass Media Services

    17. The regulatory fees for the Mass Media fee category apply to 
broadcast licensees and permittees. Noncommercial Educational 
Broadcasters are exempt from regulatory fees.
a. Commercial Radio
    18. These categories include licensed Commercial AM (Classes A, B, 
C, and D) and FM (Classes A, B, B1, C, C1, C2, and C3) Radio Stations 
operating under part 73 of the Commission's Rules.\166\ 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 2002 are as follows:
---------------------------------------------------------------------------

    \166\ 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 2002 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...........................          500          375          275          325          375          500
20,001--50,000....................          925          725          375          525          725          925
50.001--125,000...................        1,500          975          525          775          975        1,500
125,001--400,000..................        2,250        1,575          800          950        1,575        2,250
400,001--1,000,000................        3,125        2,525        1,425        1,700        2,525        3,125
>1,000,000........................        4,975        4,100        2,075        2,625        4,100        4,975
----------------------------------------------------------------------------------------------------------------

    19. Licensees may determine the appropriate fee payment by 
referring to the FCC's internet world wide web site (http://www.fcc.gov) or by calling the FCC's National Call Center (1-888-225-
5322). The same information may be included in the Public Notices 
mailed to each licensee for which we have a current address on file 
(Note: Non-receipt of a Public Notice does not relieve a licensee of 
its obligation to submit its regulatory fee payment).
b. Construction Permits--Commercial AM Radio
    20. This category includes holders of permits to construct new 
Commercial AM Stations. For FY 2002, a regulatee who held a 
construction permit on October 1, 2001 will pay a fee of $370 for each 
permit. A regulatee pays a construction permit fee only if the permit 
is for a new facility. If the regulatee held a license on October 1, 
2001 or prior, but also has a construction permit to make modifications 
to the licensed facility, it is required to pay the applicable license 
fee for the designated group within which the station appears.
c. Construction Permits--Commercial FM Radio
    21. This category includes holders of permits to construct new 
Commercial FM Stations. For FY 2002, a regulatee who held a 
construction permit on October 1, 2001 will pay a fee of $1,500 for 
each permit. A regulatee pays a construction permit fee only if the 
permit is for a new facility. If the regulatee held a license on 
October 1, 2001 or prior, but also has a construction permit to make 
modifications to the licensed facility, it is required to pay the 
applicable license fee for the designated group within which the 
station appears.
d. Commercial Television Stations
    22. This category includes licensed Commercial VHF and UHF 
Television Stations covered under part 73 of the Commission's Rules, 
except commonly

[[Page 17346]]

owned Television Satellite Stations, addressed separately below. 
Markets are Nielsen Designated Market Areas (DMA) as listed in the 
Television & Cable Factbook, Stations Volume No. 70, 2002 Edition, 
Warren Publishing, Inc. The fees for each category of station are as 
follows:

VHF Markets 1-10: $47,050
VHF Markets 11-25: 34,700
VHF Markets 26-50: 23,625
VHF Markets 51-100: 15,150
VHF Remaining Markets: 3,525
UHF Markets 1-10: $12,800
UHF Markets 11-25: 10,300
UHF Markets 26-50: 6,600
UHF Markets 51-100: 3,875
UHF Remaining Markets: 1,075
e. Commercial Television Satellite Stations
    23. Commonly owned Television Satellite Stations in any market 
(authorized pursuant to Note 5 of Sec. 73.3555 of the Commission's 
Rules) that retransmit programming of the primary station are assessed 
a fee of $805 annually. Those stations designated as Television 
Satellite Stations in the 2002 Edition of the Television and Cable 
Factbook are subject to the fee applicable to Television Satellite 
Stations. All other television licensees are subject to the regulatory 
fee payment required for their class of station and market.
f. Construction Permits--Commercial VHF Television Stations
    24. This category includes holders of permits to construct new 
Commercial VHF Television Stations authorized as of October 1, 2001. 
For FY 2002, a regulatee who held a construction permit on October 1, 
2001 will pay a fee of $2,750 for each permit. A regulatee pays a 
construction permit fee only if the permit is for a new facility. If 
the regulatee held a license on October 1, 2001 or prior, but also has 
a construction permit to make modifications to the licensed facility, 
it is required to pay the applicable license fee for the designated 
group within which the television station appears.
g. Construction Permits--Commercial UHF Television Stations
    25. This category includes holders of permits to construct new UHF 
Television Stations authorized as of October 1, 2001. For FY 2002, a 
regulatee who held a construction permit on October 1, 2001 will pay a 
fee of $5,175 for each permit. A regulatee pays a construction permit 
fee only if the permit is for a new facility. If the regulatee held a 
license on October 1, 2001 or prior, but also has a construction permit 
to make modifications to the licensed facility, it is required to pay 
the applicable license fee for the designated group within which the 
television station appears.
h. Construction Permits--Satellite Television Stations
    26. The fee for UHF and VHF Television Satellite Station 
construction permits for FY 2002 is $420. A regulatee who held a 
construction permit on October 1, 2001 will pay a fee of $420 for each 
permit. A regulatee pays a construction permit fee only if the permit 
is for a new facility. If the regulatee held a license on October 1, 
2001 or prior, but also has a construction permit to make modifications 
to the licensed facility, it is required to pay the applicable license 
fee for the designated group within which the station appears.
i. Low Power Television, FM Translator and Booster Stations, TV 
Translator and Booster Stations
    27. This category includes Low Power UHF/VHF Television stations 
operating under part 74 of the Commission's Rules with a transmitter 
power output limited to 1 kW for a UHF facility and, generally, 0.01 kW 
for a VHF facility. Low Power Television (LPTV) stations may retransmit 
the programs and signals of a TV Broadcast Station, originate 
programming, and/or operate as a subscription service. This category 
also includes translators and boosters operating under part 74 which 
rebroadcast the signals of full service stations on a frequency 
different from the parent station (translators) or on the same 
frequency (boosters). The stations in this category are secondary to 
full service stations in terms of frequency priority. We have also 
received requests for waivers of the regulatory fees from operators of 
community based Translators. These Translators are generally not 
affiliated with commercial broadcasters, are nonprofit, nonprofitable, 
or only marginally profitable, serve small rural communities, and are 
supported financially by the residents of the communities served. We 
are aware of the difficulties these Translators have in paying even 
minimal regulatory fees, and we have addressed those concerns in the 
ruling on reconsideration of the FY 1994 Report and Order. Community 
based Translators that meet certain requirements will have their fees 
waived.\167\ For FY 2002, licensees in low power television, FM 
translator and booster, and TV translator and booster category will pay 
a regulatory fee of $320 for each license held.
---------------------------------------------------------------------------

    \167\ See 10 FCC Rcd 12759, 12762 (1995).
---------------------------------------------------------------------------

j. Broadcast Auxiliary Stations
    28. This category includes licensees of remote pickup stations 
(either base or mobile) and associated accessory equipment authorized 
pursuant to a single license, Aural Broadcast Auxiliary Stations 
(Studio Transmitter Link and Inter-City Relay) and Television Broadcast 
Auxiliary Stations (TV Pickup, TV Studio Transmitter Link, TV Relay) 
authorized under part 74 of the Commission's Rules. Auxiliary Stations 
are generally associated with a particular television or radio 
broadcast station or cable television system. This category does not 
include translators and boosters (see paragraph 26 infra). For FY 2002, 
licensees of Commercial Auxiliary Stations will pay an $10 annual 
regulatory fee on a per call sign basis.
k. Multipoint Distribution Service
    29. This category includes Multipoint Distribution Service (MDS), 
Local Multipoint Distribution Service (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 2002, MDS and 
MMDS stations will pay an annual regulatory fee of $430 per call sign.

3. Cable Services

a. Cable Television Systems
    30. This category includes operators of Cable Television Systems, 
providing or distributing programming or other services to subscribers 
under part 76 of the Commission's Rules. For FY 2002, Cable Systems 
will pay a regulatory fee of $.53 per subscriber.\168\ Payments for 
Cable Systems are to be made on a per subscriber basis as of December 
31, 2001. Cable Systems should determine their subscriber numbers by 
calculating the number of single family dwellings, 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

[[Page 17347]]

Report and Order, Appendix B at paragraph 31.\169\
---------------------------------------------------------------------------

    \168\ 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.
    \169\ 59 FR 30984 (June 16, 1994).
---------------------------------------------------------------------------

b. Cable Antenna Relay Service
    31. This category includes Cable Antenna Relay Service (CARS) 
stations used to transmit television and related audio signals, signals 
of AM and FM Broadcast Stations, and cablecasting from the point of 
reception to a terminal point from where the signals are distributed to 
the public by a Cable Television System. For FY 2002, licensees will 
pay an annual regulatory fee of $65 per CARS license.

4. Common Carrier Services

a. Commercial Microwave (Domestic Public Fixed Radio Service)
    32. This category includes licensees in the Point-to-Point 
Microwave Radio Service, Local Television Transmission Radio Service, 
and Digital Electronic Message Service, authorized under part 101 of 
the Commission's Rules to use microwave frequencies for video and data 
distribution within the United States. These services are now included 
in the Microwave category (see paragraph 5 supra).
b. Interstate Telecommunication Service Providers
    33. This category includes all providers of local and telephone 
services to end users. Covered services include the interstate and 
international portion of wireline local exchange service, local and 
long distance private line services for both voice and data, dedicated 
and network packet and packet-like services, long distance message 
telephone services, and other local and toll services. Providers of 
such services are referred to herein as ``interstate telecommunication 
service providers''.
    34. Interstate service providers include CAP/CLECs, incumbent local 
exchange carriers (local telephone operating companies), interexchange 
carriers (long distance telephone companies), local resellers, OSPs 
(operator service providers that enable customers to make away from 
home calls and to place calls with alternative billing arrangements), 
payphone service providers, prepaid card, private service providers, 
satellite carriers that provide fixed local or message toll services, 
shared tenant service providers, toll resellers, and other local and 
other service providers.
    35. To avoid imposing a double payment burden on resellers, we base 
the regulatory fee on end-user revenues. Interstate telecommunication 
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.\170\ Interstate telecommunication service providers do not 
pay the Common Carrier regulatory fee on revenue from the provision of 
intrastate local and toll services, wireless monthly and local message 
services, satellite toll services, carrier's carrier telecommunications 
services, customer premises equipment, Internet service and non-
telecommunications services. For FY 2002, carriers must multiply their 
interstate and international revenue from subject local and toll 
services by the factor 0.00153 to determine the appropriate fee for 
this category of service. Regulatees may want to use the following 
worksheet to determine their fee payment:
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    \170\ 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).

------------------------------------------------------------------------
                                                                (Show
                                                              amounts in
              Calendar 2001 revenue informaion                  whole
                                                               dollars)
------------------------------------------------------------------------
1  Service provided by U.S. carriers that both originates    ...........
 and terminates in foreign points. FCC Form 499-A Line 412
 (e).......................................................
2  Interstate end-user revenues from all telecommunications  ...........
 services. FCC Form 499-A Line 420 (d).....................
3  International end-user revenues from all                  ...........
 telecommunications services except international-to-
 international. FCC 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. FCC Form 499-A Line 409 (d)...........
6  End-user international mobile service monthly and         ...........
 activation charges. FCC Form 499-A Line 409 (e)...........
7  End-user interstate mobile service message charges        ...........
 including roaming charges but excluding toll charges. FCC
 Form 499-A Line 410 (d)...................................
8  End-user international mobile service message charges     ...........
 including roaming charges but excluding toll charges. FCC
 Form 499-A Line 410 (e)...................................
9  End-user interstate satellite services. FCC Form 499-A    ...........
 Line 416 (d)..............................................
10  End-user international satellite services. FCC 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. [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. FCC 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 in Block (25A)--``Quantity''.......
15  Interstate telecommunications service provider fee            .00153
 factor....................................................
16  2002 Regulatory Fee (Line 14 times Line 15)* Note: also  ...........
 enter this number in Block (27A)-``Total Fee''............
*You are exempt from filing if the amount on line 16 is
 less than $10.
------------------------------------------------------------------------


[[Page 17348]]

5. International Services

a. Earth Stations
    36. 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.\171\ 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 2002, licensees of VSATs, Mobile Satellite Earth Stations, and 
Fixed-Satellite, Transmit/Receive and Transmit-Only Earth Stations will 
pay a fee of $140 per authorization or registration as well as a 
separate fee of $140 for each associated Hub Station.
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    \171\ Mobile earth stations are hand-held or vehicle-based units 
capable of operation while the operator or vehicle is in motion. In 
contrast, transportable units are moved to a fixed location and 
operate in a stationary (fixed) mode. Both are assessed the same 
regulatory fee for FY 2001.
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    37. Receive-only earth stations. For FY 2002, there is no 
regulatory fee for receive-only earth stations.
b. Space Stations (Geostationary Orbit)
    38. 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 reception. For FY 
2002, entities authorized to operate geostationary space stations 
(including DBS satellites) will be assessed an annual regulatory fee of 
$99,700 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)
    39. 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 2002, entities 
authorized to operate Non-Geostationary Orbit Systems (NGSOs) will be 
assessed an annual regulatory fee of $123,850 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 
\172\ 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 Sec. 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 Sec. 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:

    \172\ 62 FR 37408 (July 11, 1997)
---------------------------------------------------------------------------

    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
    40. 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 \173\. 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 
(or E-1) circuit is 30 64 Kbps circuits; a 155 Mbps (or STM-1) circuit 
is 1,890 64 Kbps circuits. Analog circuits such as 3 and 4 kHz circuits 
used for international service are also included as 64 kbps circuits. 
However, any derived circuits (circuits derived from 64 Kbps bearer 
circuits by the use of digital circuit multiplication systems) are not 
equivalent 64 kbps bearer circuits. Such derived circuits are not 
subject to payment of a fee. Only the 64 Kbps bearer circuit from which 
they have been derived will be subject to payment of a fee. Resold 
circuits are not subject to payment of a fee. For FY 2002, the 
regulatory fee is $2 for each active 64 Kbps bearer circuit or 
equivalent. For television channels, we assess fees as follows:
---------------------------------------------------------------------------

    \173\ 59FR 30984 (June 16, 1994).

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

e. International Public Fixed
    41. 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

[[Page 17349]]

stations, but not including service between the United States and 
Mexico and the United States and Canada using frequencies above 72 MHz. 
For FY 2002, International Public Fixed Radio Service licensees will 
pay a $1,400 annual regulatory fee per call sign.
f. International (HF) Broadcast
    42. 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 2002, International HF Broadcast 
Stations will pay an annual regulatory fee of $495 per station license.

Attachment G--Description of FCC Activities

    Licensing: This activity includes the authorization or licensing of 
radio stations, telecommunications equipment and radio operators, as 
well as the authorization of common carrier and other services and 
facilities. Includes direct organizational FTE and FTE workyear effort 
provided by staff offices to support policy direction, program 
development, legal services, and executive direction, as well as 
support services associated with licensing activities.
    Competition: This activity includes formal inquiries, rulemaking 
proceedings to establish or amend the Commission's rules and 
regulations, action on petitions for rulemaking, and requests for rule 
interpretations or waivers; economic studies and analyses; spectrum 
planning, modeling, propagation-interference analyses and allocation; 
and development of equipment standards. Includes direct organizational 
FTE and FTE workyear effort provided by staff offices to support policy 
direction, program development, legal services, and executive 
direction, as well as support services associated with activities to 
promote competition.
    Enforcement: This activity includes enforcement of the Commission's 
rules, regulations and authorizations, including investigations, 
inspections, compliance monitoring, and sanctions of all types. Also 
includes the receipt and disposition of formal and informal complaints 
regarding common carrier rates and services, the review and acceptance/
rejection of carrier tariffs, and the review, prescription and audit of 
carrier accounting practices. Includes direct organizational FTE and 
FTE workyear effort provided by staff offices to support policy 
direction, program development, legal services, and executive 
direction, as well as support services associated with enforcement 
activities.
    Consumer Information Services: This activity includes the 
publication and dissemination of Commission decisions and actions, and 
related activities; public reference and library services; the 
duplication and dissemination of Commission records and databases; the 
receipt and disposition of public inquiries; consumer, small business, 
and public assistance; and public affairs and media relations. Includes 
direct organizational FTE and FTE workyear effort provided by staff 
offices to support policy direction, program development, legal 
services, and executive direction, as well as support services 
associated with consumer information activities.
    Spectrum Management: This activity includes management of the 
electromagnetic spectrum as mandated by the Communications Act of 1934, 
as amended. Spectrum management includes the structure and processes 
for allocating, allotting, assigning, and licensing this scarce 
resource to the private sector and state and local governments in a way 
that promotes competition while ensuring that the public interest is 
best served. In order to manage spectrum in both an efficient and 
equitable manner, the Commission prepares economic, technical and 
engineering studies, coordinates with federal agencies, and represents 
U.S. industry in international forums. This activity includes direct 
organizational FTEs and FTE workyear efforts provided by staff offices 
that 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.\174\ 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.
---------------------------------------------------------------------------

    \174\ 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.\175\ 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.

    \175\ 47 CFR 73.313.
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[FR Doc. 02-8600 Filed 4-9-02; 8:45 am]
BILLING CODE 6712-02-P