[Federal Register Volume 67, Number 134 (Friday, July 12, 2002)]
[Rules and Regulations]
[Pages 46298-46325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-17308]



[[Page 46297]]

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

Part III





Federal Communications Commission





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



47 CFR Part 1



Assessment and Collection of Regulatory Fees For Fiscal Year 2002; 
Final Rule

  Federal Register / Vol. 67, No. 134 / Friday, July 12, 2002 / Rules 
and Regulations  

[[Page 46298]]


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

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 02-64; FCC 02-205]


Assessment and Collection of Regulatory Fees For Fiscal Year 2002

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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

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

DATES: September 9, 2002.

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

SUPPLEMENTARY INFORMATION:
    Adopted: July 3, 2002.
    Released: July 5, 2002.
    By the Commission: Commissioner Copps concurring and issuing a 
statement.

                            Table of Contents
------------------------------------------------------------------------
                                                              Paragraph
                           Topic                                 Nos.
------------------------------------------------------------------------
I. Introduction............................................            1
II. Background.............................................            4
III. Discussion:
    A. Development of FY 2002 Fees
        i. Adjustment of Payment Units.....................            9
        ii. Calculation of Revenue Requirements............           10
        iii. Recalculation of Fees and Procedural Changes..           11
    B. NPRM Issues and Comments Received...................           14
        i. Amateur Vanity Call Signs.......................           16
        ii. Commercial Mobile Radio Service Messaging......           17
        iii. Interstate Telecommunications Service                    19
         Providers.........................................
    C. Procedures for Payment of Regulatory Fees...........           21
        i. Annual Payments of Standard Fees................           22
        ii. Installment Payments for Large Fees............           23
        iii. Advance Payments of Small Fees................           24
        iv. De Minimis Fee Payment Liability...............           25
        v. Standard Fee Calculations and Payments..........           26
        vi. Mandatory Use of FCC Registration Number (FRN).           29
        vii. Population Count of AM and FM Radio Stations..           30
        viii. Technical Changes............................           32
    D. Schedule of Regulatory Fees.........................           35
    E. Enforcement.........................................           36
IV. Procedural Matters:
    A. Ordering Clause.....................................           37
    B. Authority and Further Information...................           38
Attachment A--Final 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, FY 2002 Proposed
 and FY 2002 Final Regulatory Fees
Attachment F--Detailed Guidance on Who Must Pay Regulatory
 Fees
Attachment G--Description of FCC Activities
Attachment H--Factors, Measurements, and Calculations that
 Determine Station Signal Contours and Population Coverages
Attachment I--Parties Filing Comments and Reply Comments
Attachment J--AM and FM Radio Regulatory Fees
------------------------------------------------------------------------

I. Introduction

    1. By this Report and Order, the Commission concludes a proceeding 
to revise its Schedule of Regulatory Fees to collect the amount of 
regulatory fees that Congress, pursuant to section 9(a) of the 
Communications Act, as amended, has required us to collect for Fiscal 
Year (FY) 2002.\1\
---------------------------------------------------------------------------

    \1\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    2. We must 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\ See Attachment G for a 
description of these activities. This amount is $18,611,000 or 
approximately 9.3% more than the amount designated for recovery through 
regulatory fees for FY 2001.\3\ We are revising our fees in order to 
collect this amount as illustrated in a new fee schedule in Attachment 
D.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    3. In revising our fees, we adjusted the payment units and revenue 
requirement for each service subject to a fee, consistent with section 
159(b)(2). The Schedule of Regulatory Fees is set forth in Secs. 1.1152 
through 1.1156 of the Commission's rules.\4\
---------------------------------------------------------------------------

    \4\ 47 CFR 1.1152 through 1.1156.
---------------------------------------------------------------------------

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 its regulatory costs.\5\ In our FY 1994 Fee Order,\6\ we 
adopted the Schedule of Regulatory Fees that Congress initially

[[Page 46299]]

established, and prescribed rules to govern payment of the fees.\7\
---------------------------------------------------------------------------

    \5\ 47 U.S.C. 159(a).
    \6\ 59 FR 30984 (1994).
    \7\ 47 U.S.C. 159(b), (f)(1).
---------------------------------------------------------------------------

    5. For fiscal years after FY 1994, we modified the fee schedule to 
increase the fees in accordance with the amounts Congress required us 
to collect in each succeeding fiscal year. Section 9(b)(2), entitled 
``Mandatory Adjustments,'' requires that we revise the Schedule of 
Regulatory Fees to reflect the amount that Congress annually requires 
us to recover through regulatory fees.\8\ 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 * * *'' 
\9\
---------------------------------------------------------------------------

    \8\ 47 U.S.C. 159(b)(2).
    \9\ 47 U.S.C. 159(b)(3).
---------------------------------------------------------------------------

    6. 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.\10\ The Commission is planning a new improved cost accounting 
system, which we anticipate to be operational after sufficient testing. 
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 could 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 fee schedule that more closely 
reflected our cost of regulation. Over time, as the cost of regulation 
increased or decreased, this methodology would enable us to revise the 
fee schedule to reflect those services whose regulatory costs had 
changed.
---------------------------------------------------------------------------

    \10\ 47 U.S.C. 159(i).
---------------------------------------------------------------------------

    7. However, we found that developing a regulatory fee structure 
based on available but insufficiently detailed 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 could not be adjusted to an acceptable and balanced 
level. We concluded that it would be best to discontinue attempts to 
base the schedule on our available cost data. Instead, we chose to 
adjust the FY 1999 through FY 2001 fees through ``Mandatory 
Adjustments'' only. We have found no reason to deviate from this policy 
for FY 2002. However, we are applying the ``Mandatory Adjustments'' as 
we did in FY 2001 to better incorporate changes in payment units. 
Finally, section 9(b)(4)(B) requires us to notify Congress, if there 
are any ``Permitted Amendments,'' 90 days before those amendments go 
into effect.\11\ However, since we are making no ``Permitted 
Amendments,'' this section does not apply for FY 2002.
---------------------------------------------------------------------------

    \11\ 47 U.S.C. 159(b)(4)(B).
---------------------------------------------------------------------------

    8. We also amended the rules governing our regulatory fee program 
based upon our prior experience in administering the program.\12\ These 
changes are discussed in more detail in paragraphs 29-34.
---------------------------------------------------------------------------

    \12\ 47 CFR 1.1151 et seq.
---------------------------------------------------------------------------

III. Discussion

A. Development of FY 2002 Fees

i. Adjustment of Payment Units
    9. 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.\13\
---------------------------------------------------------------------------

    \13\ It is important to note also that the required increase in 
regulatory fee payments of approximately 9.3 percent in FY 2002 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.
---------------------------------------------------------------------------

ii. Calculation of Revenue Requirements
    10. We compared the sum of all estimated revenue requirements for 
FY 2001 to the amount that we must collect for FY 2002, 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 and Procedural Changes
    11. 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.
    12. 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. 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).
    13. Finally, we have incorporated, as Attachment F, 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.

B. NPRM Issues and Comments Received

    14. The Commission issued a Notice of Proposed Rulemaking (NPRM), 
adopted on March 22, 2002, setting forth a proposed fee schedule for FY 
2002 based on the methodology used in FY 2001. The NPRM also requested 
comment on certain administrative issues, including proposals related 
to AM and FM population calculation errors, payment of fees using 
credit cards, the imposition of a processing fee for delinquent fee 
payments, and refunds involving less than $10.
    15. In response to the NPRM, we received comments from AT&T 
Verizon; the American Association of Paging Carriers; the Allied 
Personal Communications Industries Association of California; Blooston, 
Mordkofsky, Dickens, Duffy & Prendergast; and from two amateur radio 
licensees. Replies were filed by Verizon and American Mobile 
Telecommunications Association. Arch Wireless, along with the American 
Association of Paging

[[Page 46300]]

Carriers and the Law Firm of Blooston, Mordkofsky, Dickens, Duffy & 
Prendergast, also filed a Notice of Ex Parte Presentation. None of the 
parties commented on the NPRM's administrative proposals. The comments 
of AT&T and Verizon relate to whether the Commission should use more 
current data or a different methodology in setting the Interstate 
Telecommunications Service Providers (ITSP) regulatory fee. The 
comments of the CMRS messaging industry object to the increase proposed 
to the per unit fee for CMRS messaging providers. Amateur radio 
commenters object to paying regulatory fees when renewing their 
authorizations. This Report and Order discusses each of these issues 
and finds no basis for changing the approach proposed in the NPRM.
i. Amateur Vanity Call Signs
    16. Amateur licensees Steven Karty and William J. Hanrahan support 
the payment of a regulatory fee for the initial administrative cost 
actually incurred by the Commission, but question why the amateur 
vanity call sign fee must be paid upon renewal. William J. Hanrahan 
also suggests that there be no cost distinction between vanity call 
signs and systematically assigned call signs. Section 9 of the 
Communications Act, as amended, provides for the recovery of the 
Commission's costs associated with its enforcement, policy and 
rulemaking, user information, and international activities.\14\ Every 
day, Commission staff are engaged in activities involving amateur 
vanity call signs, such as protecting the assignment of vanity call 
signs, investigating complaints on the improper or illegal usage of 
call signs, requests for call signs that are already assigned to 
someone else, and all related research that is necessary to insure the 
proper assignment of call signs. Therefore, because the Commission 
continues to incur costs on vanity call signs even after the issuance 
or renewal of amateur vanity call signs, we believe that it is 
appropriate to assess such a regulatory fee upon the renewal of amateur 
vanity call sign licenses.
---------------------------------------------------------------------------

    \14\ 47 U.S.C. 159(a)(1).
---------------------------------------------------------------------------

ii. Commercial Mobile Radio Service (CMRS) Messaging
    17. Allied Personal Communications Industries Association of 
California (``Allied'') argues that the CMRS Messaging fee of $0.08 per 
unit represents a 60% increase from last year's per unit fee of $0.05, 
rather than an increase of 9.3% that Congress requires us to 
collect.\15\ Allied further contends that the methodology for 
calculating the current fee schedule for CMRS messaging be changed from 
a per unit basis to an interstate revenue basis.\16\ The American 
Association of Paging Carriers (``AAPC'') and the law firm of Blooston, 
Mordkofsky, Dickens, Duffy & Prendergast (``BMDDP'') also raise the 
same issue stating that the per unit fee for CMRS Messaging has 
increased 60%, far beyond the 9.3% increase intended by Congress.\17\ 
Furthermore, AAPC also discusses the impact of using an estimate of 
23.6 million units as the basis for calculating CMRS Messaging fees, 
and whether a higher estimate (e.g. 38.9 million or even 45.3 million 
units) should not be used.\18\ The law firm of Blooston, Mordkofsky, 
Dickens, Duffy & Prendergast also argues that an $0.08 per unit 
regulatory fee would be disastrous to an already fragile paging 
industry whose businesses are generally defined as ``small'' or ``very 
small'' businesses.\19\ BMDDP also argues that because these businesses 
are small and community oriented, there is a great deal of customer 
loyalty to these local businesses, which is likely to change with 
declining revenues and higher regulatory fees.\20\ And finally, BMDDP 
argues that historically speaking, the Commission has followed a policy 
of gradualism in protecting fledging telecommunications industries and 
small businesses, particularly if this policy will further the public 
interest.\21\ In an oral Ex Parte presentation, Arch Wireless, Inc. 
(``Arch''), along with the American Association of Paging Carriers and 
the law firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast, 
suggested that the Commission revise its methodology and use revenues, 
rather than estimated CMRS messaging units, as the basis for 
configuring regulatory fees in the future.\22\
---------------------------------------------------------------------------

    \15\ Comments submitted by Allied Personal Communications 
Industries Association of California on April 23, 2002, page 4.
    \16\ Ibid.
    \17\ Comments submitted on April 23, 2002 by the American 
Association of Paging Carriers (page 2), and the law firm of 
Blooston, Mordkofsky, Dickens, Duffy & Prendergast (page 3).
    \18\ American Association of Paging Carriers (pages 2, 4-6).
    \19\ Blooston, Mordkofsky, Dickens, Duffy & Prendergast, pages 
1-2.
    \20\ Ibid., pages 2-4.
    \21\ Ibid., pages 5-6, 8-9.
    \22\ Notice of Oral Ex Parte Presentation, submitted on May 17, 
2002.
---------------------------------------------------------------------------

    18. The 9.3% increase has been applied to the total revenue 
required to be collected from the CMRS Messaging industry, not to the 
per unit fee assessed in FY 2001. The FY 2002 unit fee results from 
dividing this new revenue requirement by the estimated number of units 
which we believe will be reported and a fee paid for FY 2002. While 
using a higher unit estimate of ``38.9 or even 45.3 million units'' 
would significantly lower the per unit fee, the commenters have not 
demonstrated that those estimates accurately represent the number of 
paying units currently in use by the messaging industry. Furthermore, 
the commenters have provided no basis to substantiate the claim that a 
$0.03 annual increase per unit will be damaging to the industry. With 
respect to the suggestion that revenues be used as the basis for 
determining regulatory fees for CMRS messaging, this suggestion will 
require further consideration, particularly in determining whether a 
comprehensive source of revenue information is available for all 
entities engaged in providing CMRS messaging services.
iii. Interstate Telecommunications Service Providers (ITSP)
    19. AT&T Corporation (``AT&T'') asserts that the current regulatory 
fees mechanism does not conform to the methodology used for assessment 
and collection of universal service support and requests the 
Commission, to be consistent, reduce the time lag between the accrual 
of revenues and the payment of regulatory fees.\23\ AT&T argues that 
this time lag between assessment and collection unfairly disadvantages 
certain carriers and reduces competition.\24\ In revising its schedule 
of fees, the Commission follows a rigid time schedule that incorporates 
such steps as collecting data, reviewing the information, seeking 
public comments and reply comments, submitting a 60-day or 90-day 
notice to OMB and Congress, respectively, as well as to allow 
sufficient time for review and adoption of the Report and Order. Hence, 
AT&T's suggestion to use more current data from FCC Form 499-Q 
(submitted by carriers on August 1, 2002) is simply impractical given 
our rigid time schedule.\25\ In addition, AT&T also notes that our fee 
calculations are based on 2001 revenue data, and since FY 2002 
regulatory fees are not paid until September 2002, a time lag exists 
that could alter the regulatory rate for ITSP fees, which can be 
rectified by the use of FCC Form 499-Q (data from second quarter 2002). 
Carriers have not yet filed second

[[Page 46301]]

quarter 2002 revenues in Form 499-Q filings, and in any case, Form 499-
Q lacks sufficient detail to permit calculation of the regulatory fee 
base. However, for purposes of calculating ITSP regulatory fees, what 
is most important is the submission of a comprehensive data form that 
meets our rigid time schedule, and FCC Form 499-A serves this purpose 
well. Although FCC Form 499-Q may reflect more current revenues data, 
we believe that it is not submitted with sufficient detail to permit 
carriers to complete Form 159-W, which is used as the basis for 
calculating and paying the Interstate Telecommunications Service 
Providers (ITSP) fee obligation.
---------------------------------------------------------------------------

    \23\ Comments submitted by AT&T on April 23, 2002, page 4.
    \24\ Ibid, page 5.
    \25\ Ibid, page 7.
---------------------------------------------------------------------------

    20. AT&T also suggests that the Commission simultaneously modify 
its regulatory fee collections methodology from a historical revenue-
based assessment to a connection and capacity-based mechanism if and 
when the Commission modifies its universal service contribution 
methodology.\26\ In the Universal Service Contribution Methodology 
Further Notice, we specifically sought comment on the appropriate basis 
for calculating regulatory fees if the Commission were to adopt a 
connection and capacity-based universal service contribution 
methodology.\27\ Until we resolve the issue of how contributions to 
universal service should be calculated, contemplating any revision to 
our regulatory fee methodology would be premature.
---------------------------------------------------------------------------

    \26\ But see Verizon Reply Comments submitted on May 3, 2002.
    \27\ See Federal-State Joint Board on Universal Service, 1998 
Biennial Regulatory Review--Streamlined Contributor Reporting 
Requirements Associated with Administration of Telecommunications 
Relay Service, North American Numbering Plan, Local Number 
Portability, and Universal Service Support Mechanisms, 
Telecommunications Services for Individuals with Hearing and Speech 
Disabilities, and the Americans with Disabilities Act of 1990, 
Administration of the North American Plan and North American 
Numbering Plan Cost Recovery Contribution Factor and Fund Size, 
Number Resource Optimization, Telephone Number Portability, Trust-
in-Billing and Billing Format, CC Docket Nos. 96-45, 98-171, 90-571, 
92-237, 99-200, 95-116, 98-170, Further Notice of Proposed 
Rulemaking and Order, paragraph 82 (released February 26, 2002) 
(Universal Service Contribution Methodology Further Notice).
---------------------------------------------------------------------------

C. Procedures for Payment of Regulatory Fees

    21. We are retaining the procedures that we have established for 
the payment of regulatory fees. See paragraphs 22-24. Section 9(f) 
requires that we permit ``payment by installments in the case of fees 
in large amounts, and in the case of small amounts, shall require the 
payment of the fee in advance for a number of years not to exceed the 
term of the license held by the payer.'' See 47 U.S.C. 159(f)(1). 
Consistent with section 9(f), we are again establishing three 
categories of fee payments, based upon the category of service for 
which the fee payment is due and the amount of the fee to be paid. The 
fee categories are: (1) ``Standard'' fees, (2) ``large'' fees, and (3) 
``small'' fees.
i. Annual Payments of Standard Fees
    22. As we have in the past, we are treating regulatory fee payments 
by certain licensees as ``standard fees'' which are those regulatory 
fees that are payable in full on an annual basis. Payers of standard 
fees are not required to make advance payments for their full license 
term and are not eligible for installment payments. All standard fees 
are payable in full on the date we establish for payment of fees in 
their regulatory fee category. The payment dates for each regulatory 
fee category will begin September 10, 2002 and end at close of business 
September 25, 2002.
ii. Installment Payments for Large Fees
    23. While time constraints will again preclude an opportunity for 
installment payments, regulatees in any category of service with a 
liability of $12,000 or more may choose to pay these fees on the last 
date that fee payments may be submitted. The date for installment 
payments will end at close of business on September 25, 2002.
iii. Advance Payments of Small Fees
    24. As we have in the past, we are treating regulatory fee payments 
by certain licensees as ``small'' fees subject to advance payment 
consistent with the requirements of section 9(f)(2). Advance payments 
will be required from licensees of those services that we decided would 
be subject to advance payments in our FY 1994 Report and Order, and to 
those additional payers noted.\28\ 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 starting date for payment of small fees 
established in this proceeding is September 10, 2002.
---------------------------------------------------------------------------

    \28\ 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.
---------------------------------------------------------------------------

iv. De Minimis Fee Payment Liability
    25. As we have in the past, 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.
v. Standard Fee Calculations and Payment Dates
    26. For licensees and permittees of Media (formerly 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 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 
must be paid by the licensee or holder of the authorization on the date 
that the fee payment is due. For licensees, permittees and holders of 
other authorizations in the Wireline Competition Bureau (formerly 
Common Carrier) and Cable Services (presently within the Media Bureau) 
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.
    27. 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.\29\ A pending

[[Page 46302]]

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

    \29\ 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.
---------------------------------------------------------------------------

    28. 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)
    29. Pursuant to MD Docket No. 00-205 adopted on August 24, 2001 
effective December 3, 2001 regulatory fee filers are required to 
provide FRN's with regulatory fee payments.\30\ This matter was first 
noted in the FY 2001 Regulatory Fee NPRM, to which the Commission 
received no comments. Regulatory fee payments received without an FRN 
will be retained by the Agency. The FCC will send the filer a letter 
notifying them that the payment was received without an FRN and that 
proper credit for the payment will not occur until the FRN is provided. 
The filer may receive dunning notices from the FCC until the 
appropriate FRN is provided for the payment.
---------------------------------------------------------------------------

    \30\ 66 FR 47890 (September 14, 2001).
---------------------------------------------------------------------------

vii. Population Count of AM and FM Radio Stations
    30. 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 this 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 Media Regulatory Fees Public Notice that 
identifies the radio station call signs and their respective fees. 
Therefore, if a licensee has paid the fee listed in the 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, 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.
    31. In addition, 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 
Media Regulatory Fees Public Notice. For example, in the case of a 
population calculation error resulting in an overstated fee amount, if 
the 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 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. We 
proposed this issue of addressing incorrect population counts for AM 
and FM radio stations in the Notice of Proposed Rulemaking, but we did 
not receive any comments or reply comments relating to this particular 
issue.
viii. Technical Changes
    32. Regulatory fee payments may be made by Visa, MasterCard, 
American Express, and Discover 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.
    33. It has come to our attention that we did not make corresponding 
revisions to certain descriptive portions of sections 1.1152 and 1.1157 
of our rules 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) Mobile and CMRS 
Messaging. The descriptive portions of sections 1.1152 and 1.1157 of 
our rules are changed 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.
    34. 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, 
for purposes of more efficient money management, 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

    35. The Commission's Schedule of Regulatory Fees for FY 2002 is 
contained in Attachment D of this Report and Order.

E. Enforcement

    36. 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

[[Page 46303]]

processing and handling the related debt pursuant to the DCIA and 
section 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. Ordering Clause

    37. Accordingly, it is ordered that the rule changes specified 
herein be adopted. It is further ordered that the rule changes made 
herein will become effective September 9, 2002, which is no less that 
30 days from the date of publication in the Federal Register. A Final 
Regulatory Flexibility Analysis (FRFA) has been performed and is found 
in Attachment A, and it is ordered that the Federal Communications 
Commission's Consumer and Governmental Affairs Bureau, Reference 
Information Center, send this to Small Business Administration (SBA). 
Finally, it is ordered that this proceeding is terminated.

B. Authority and Further Information

    38. 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.\31\ It is ordered that this Report and Order is adopted. It is 
further ordered that the Commission's Consumer and Governmental Affairs 
Bureau, Reference Information Center, shall send a copy of this Report 
and Order, including the Final Regulatory Flexibility Analysis (FRFA), 
to the Chief Counsel for Advocacy of the Small Business Administration.
---------------------------------------------------------------------------

    \31\ 47 U.S.C. 154(i)-(j), 159, & 303(r).
---------------------------------------------------------------------------

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

List of Subjects in 47 CFR Part 1

    Administrative practice and procedures, Communications common 
carriers, Radio, Telecommunications, Television.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Rule Changes

    Accordingly, part 1 of Title 47 of the Code of Federal Regulations 
is amended to read as follows:

PART 1--PRACTICE AND PROCEDURE

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

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

    2. Section 1.1110 is amended by revising paragraph (a) introductory 
text to read as follows:


Sec. 1.1110  Form of payment.

    (a) Fee payments should be in the form of a check, bank draft, on 
money order denominated in U.S. dollars and drawn on a United States 
financial institution and made payable to the Federal Communications 
Commission or by a Visa, MasterCard, American Express, or Discover 
credit card. No other credit card is acceptable. Fees for applications 
and other filings paid by credit card will not be accepted unless the 
credit card section of FCC Form 159 is completed in full. The 
Commission discourages applicants from submitting cash and will not be 
responsible for cash sent through the mail. Personal or corporate 
checks dated more than six months prior to their submission to the 
Commission's lockbox bank and postdated checks will not be accepted and 
will be returned as deficient. Third party checks (i.e., checks with a 
third party as maker or endorser) will not be accepted.
* * * * *

    3. Section 1.1113 is amended by revising paragraph (a)(5) Note to 
read as follows:


Sec. 1.1113  Return or refund of charges.

    (a) * * *
    (5) * * *

    Note-- Payments in excess of an application fee will be refunded 
only if the overpayment is $10 or more.

* * * * *

    4. Section 1.1152 is revised to read as follows:


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

------------------------------------------------------------------------
  Exclusive use services (per
            license)             Fee amount \1\          Address
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz
 and 220 MHz Local, Base
 Station & SMRS) (47 CFR, Part
 90):
    (a) New, Renew/Mod (FCC 601           $5.00  FCC, P.O. Box 358130,
     & 159).                                      Pittsburgh, PA 15251-
                                                  5130.
    (b) New, Renew/Mod                     5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
    (c) Renewal Only (FCC 601 &            5.00  FCC, P.O. Box 358245,
     159).                                        Pittsburgh, PA 15251-
                                                  5245.
    (d) Renewal Only                       5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
------------------------------------------------------------------------
                           220 MHz Nationwide
------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC 601            5.00  FCC, P.O. Box 358130,
     & 159).                                      Pittsburgh, PA 15251-
                                                  5130.
    (b) New, Renew/Mod                     5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
    (c) Renewal Only (FCC 601 &            5.00  FCC, P.O. Box 358245,
     159).                                        Pittsburgh, PA 15251-
                                                  5245.
    (d) Renewal Only                       5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
2. Microwave (47 CFR Pt. 101)
 (Private):
    (a) New, Renew/Mod (FCC 601           10.00  FCC, P.O. Box 358130,
     & 159).                                      Pittsburgh, PA 15251-
                                                  5130.
    (b) New, Renew/Mod                    10.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
    (c) Renewal Only (FCC 601 &           10.00  FCC, P.O. Box 358245,
     159).                                        Pittsburgh, PA 15251-
                                                  5245.
    (d) Renewal Only                      10.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
3. 218-219 MHz Service:
    (a) New, Renew/Mod (FCC 601           25.00  FCC, P.O. Box 358130,
     & 159).                                      Pittsburgh, PA 15251-
                                                  5130.
    (b) New, Renew/Mod                    25.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
    (c) Renewal Only (FCC 601 &           25.00  FCC, P.O. Box 358245,
     159).                                        Pittsburgh, PA 15251-
                                                  5245.

[[Page 46304]]

 
    (d) Renewal Only                      25.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
4. Shared Use Services:
------------------------------------------------------------------------
         Land Mobile (Frequencies Below 470 MHz--except 220 MHz)
------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC 601            5.00  FCC, P.O. Box 358130,
     & 159).                                      Pittsburgh, PA 15251-
                                                  5130.
    (b) New, Renew/Mod                     5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
    (c) Renewal Only (FCC 601 &            5.00  FCC, P.O. Box 358245,
     159).                                        Pittsburgh, PA 15251-
                                                  5245.
    (d) Renewal Only                       5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
------------------------------------------------------------------------
                      General Mobile Radio Service
------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC 605            5.00  FCC, P.O. Box 358130,
     & 159).                                      Pittsburgh, PA 15251-
                                                  5130.
    (b) New, Renew/Mod                     5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     605 & 159).                                  5994.
    (c) Renewal Only (FCC 605 &            5.00  FCC, P.O. Box 358245,
     159).                                        Pittsburgh, PA 15251-
                                                  5245.
    (d) Renewal Only                       5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     605 & 159).                                  5994.
------------------------------------------------------------------------
                          Rural Radio (Part 22)
------------------------------------------------------------------------
    (a) New, Additional                    5.00  FCC, P.O. Box 358994,
     Facility, Major Renew/Mod                    Pittsburgh, PA 15251-
     (Electronic Filing) (FCC                     5994.
     601 & 159).
    (b) Renewal, Minor Renew/              5.00  FCC, P.O. Box 358994,
     Mod (Electronic Filing)                      Pittsburgh, PA 15251-
     (FCC 601 & 159).                             5994.
------------------------------------------------------------------------
                              Marine Coast
------------------------------------------------------------------------
    (a) New Renewal/Mod (FCC               5.00  FCC, P.O. Box 358130,
     601 & 159).                                  Pittsburgh, PA 15251-
                                                  5130.
    (b) Renewal Only (FCC 601 &            5.00  FCC, P.O. Box 358245,
     159).                                        Pittsburgh, PA 15251-
                                                  5245.
    (c) Renewal Only                       5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
------------------------------------------------------------------------
                             Aviation Ground
------------------------------------------------------------------------
    (a) New, Renewal/Mod (FCC             10.00  FCC, P.O. Box 358130,
     601 & 159).                                  Pittsburgh, PA 15251-
                                                  5130.
    (b) Renewal Only (FCC 601 &           10.00  FCC, P.O. Box 358245,
     159).                                        Pittsburgh, PA 15251-
                                                  5245.
    (c) Renewal Only                      10.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     601 & 159).                                  5994.
------------------------------------------------------------------------
                               Marine Ship
------------------------------------------------------------------------
    (a) New, Renewal/Mod (FCC             10.00  FCC, P.O. Box 358130,
     605 & 159).                                  Pittsburgh, PA 15251-
                                                  5130.
    (b) New, Renewal/Mod                  10.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     605 & 159).                                  5994.
    (c) Renewal Only (FCC 605 &           10.00  FCC, P.O. Box 358245,
     159).                                        Pittsburgh, PA 15251-
                                                  5245.
    (d) Renewal Only                      10.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     605 & 159).                                  5994.
------------------------------------------------------------------------
                            Aviation Aircraft
------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC 605            5.00  FCC, P.O. Box 358130,
     & 159).                                      Pittsburgh, PA 15251-
                                                  5130.
    (b) New, Renew/Mod                     5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     605 & 159).                                  5994.
    (c) Renewal Only (FCC 605 &            5.00  FCC, P.O. Box 358245,
     159).                                        Pittsburgh, PA 15251-
                                                  5245.
    (d) Renewal Only                       5.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     605 & 159).                                  5994.
5. Amateur Vanity Call Signs:
    (a) Initial or Renew (FCC              1.45  FCC, P.O. Box 358130,
     605 & 159).                                  Pittsburgh, PA 15251-
                                                  5130.
    (b) Initial or Renew                   1.45  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC                     Pittsburgh, PA 15251-
     605 & 159).                                  5994.
6. CMRS Mobile Services (per            \2\ .24  FCC, P.O. Box 358835,
 unit) (FCC 159).                                 Pittsburgh, PA 15251-
                                                  5835.
7. CMRS Messaging Services (per         \3\ .08  FCC, P.O. Box 358835,
 unit) (FCC 159).                                 Pittsburgh, PA 15251-
                                                  5835.
------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire
  license term. Therefore, the annual fee amount shown in this table
  that is a small fee (categories 1 through 5) must be multiplied by the
  5- or 10-year license term, as appropriate, to arrive at the total
  amount of regulatory fees owed. It should be further noted that
  application fees may also apply as detailed in Sec.  1.1102 of this
  chapter.
\2\ These are standard fees that are to be paid in accordance with Sec.
  1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with Sec.
  1.1157(b) of this chapter.


    5. Section 1.1153 is revised to read as follows:


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

------------------------------------------------------------------------
                                   Fee amount            Address
------------------------------------------------------------------------
                   Radio [AM and FM] (47 CFR, Part 73)
------------------------------------------------------------------------
1. AM Class A:
    <=20,000 population........            $500  FCC, Radio, P.O. Box
    20,001-50,000 population...             925   358835, Pittsburgh, PA
                                                  15251-5835.
    50,001-125,000 population..           1,500

[[Page 46305]]

 
    125,001-400,000 population.           2,250
    400,001-1,000,000                     3,125
     population.
    1,000,000 population.......           4,975
2. AM Class B:
    <=20,000 population........             375
    20,001-50,000 population...             725
    50,001-125,000 population..             975
    125,001-400,000 population.           1,575
    400,001-1,000,000                     2,525
     population.
    1,000,000 population.......           4,100
3. AM Class C:
    <=20,000 population........             275
    20,001-50,000 population...             375
    50,001-125,000 population..             525
    125,001-400,000 population.             800
    400,001-1,000,000                     1,425
     population.
    1,000,000 population.......           2,075
4. AM Class D:
    <=20,000 population........             325
    20,001-50,000 population...             525
    50,001-125,000 population..             775
    125,001-400,000 population.             950
    400,001-1,000,000                     1,700
     population.
    1,000,000 population.......           2,625
5. AM Construction Permit......             370
6. FM Classes A, B1 and C3:
    <=20,000 population........             375
    20,001-50,000 population...             725
    50,001-125,000 population..             975
    125,001-400,000 population.           1,575
    400,001-1,000,000                     2,525
     population.
    ?1,000,000 population......           4,100
7. FM Classes B, C, C1 and C2:
    <=20,000 population........             500
    20,001-50,000 population...             925
    50,001-125,000 population..           1,500
    125,001-400,000 population.           2,250
    400,001-1,000,000                     3,125
     population.
    ?1,000,000 population......           4,975
8. FM Construction Permits.....           1,500
------------------------------------------------------------------------
                   TV (47 CFR, Part 73) VHF Commercial
------------------------------------------------------------------------
1. Markets 1 thru 10...........          47,050  FCC, TV Branch, P.O.
2. Markets 11 thru 25..........          34,700   Box 358835,
                                                  Pittsburgh, PA 15251-
                                                  5835.
3. Markets 26 thru 50..........          23,625
4. Markets 51 thru 100.........          15,150
5. Remaining Markets...........           3,525
6. Construction Permits........           2,750
------------------------------------------------------------------------
                             UHF Commercial
------------------------------------------------------------------------
1. Markets 1 thru 10...........          12,800  FCC, UHF Commercial,
2. Markets 11 thru 25..........          10,300   P.O. Box 358835,
                                                  Pittsburgh, PA 15251-
                                                  5835.
3. Markets 26 thru 50..........           6,600
4. Markets 51 thru 100.........           3,875
5. Remaining Markets...........           1,075
6. Construction Permits........           5,175
------------------------------------------------------------------------
                      Satellite UHF/VHF Commercial
------------------------------------------------------------------------
1. All Markets.................             805  FCC Satellite TV, P.O.
2. Construction Permits........             420   Box 358835,
                                                  Pittsburgh, PA 15251-
                                                  5835.
Low Power TV, TV/FM Translator,             320  FCC, Low Power, P.O.
 & TV/FM Booster (47 CFR Part                     Box 358835,
 74).                                             Pittsburgh, PA 15251-
                                                  5835.
Broadcast Auxiliary............              10  FCC, Auxiliary, P.O.
                                                  Box 358835,
                                                  Pittsburgh, PA 15251-
                                                  5835.
Multipoint Distribution                     430  FCC, Multipoint, P.O.
 (Includes MMDS, MDS, & LMDS).                    Box 358835,
                                                  Pittsburgh, PA 15251-
                                                  5835
------------------------------------------------------------------------


    6. Section 1.1154 is revised to read as follows:


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

[[Page 46306]]



------------------------------------------------------------------------
                                   Fee amount            Address
------------------------------------------------------------------------
                            Radio Facilities
------------------------------------------------------------------------
1. Microwave (Domestic Public            $10.00  FCC, P.O. Box 358994,
 Fixed) (Electronic Filing)                       Pittsburgh, PA 15251-
 (FCC Form 601 & 159).                            5994.
------------------------------------------------------------------------
------------------------------------------------------------------------


------------------------------------------------------------------------
                                   Fee amount            Address
------------------------------------------------------------------------
                                Carriers
------------------------------------------------------------------------
1. Interstate Telephone Service          .00153  FCC, Carriers, P.O. Box
 Providers (per interstate and                    358835, Pittsburgh, PA
 international end-user                           15251-5835.
 revenues (see FCC Form 499-A).
------------------------------------------------------------------------


    7. Section 1.1155 is revised to read as follows:


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

------------------------------------------------------------------------
                                   Fee amount            Address
------------------------------------------------------------------------
1. Cable Television Relay                   $65  FCC, Cable, P.O. Box
 Service.                                   .53   358835, Pittsburgh, PA
2. Cable TV System.............                   15251-5835.
------------------------------------------------------------------------


    8. Section 1.1156 is revised to read as follows:


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

------------------------------------------------------------------------
                                   Fee amount            Address
------------------------------------------------------------------------
                            Radio Facilities
------------------------------------------------------------------------
1. International (HF) Broadcast            $495  FCC, International,
                                                  P.O. Box 358835,
                                                  Pittsburgh, PA 15251-
                                                  5835.
2. International Public Fixed..           1,400  FCC, International,
                                                  P.O. Box 358835,
                                                  Pittsburgh, PA 15251-
                                                  5835.
Space Stations (Geostationary            99,700  FCC, Space Stations,
 Orbit).                                          P.O. Box 358835,
                                                  Pittsburgh, PA 15251-
                                                  5835.
Space Stations (Non-                    103,200  FCC, Space Stations,
 Geostationary Orbit).                            P.O. Box 358835,
                                                  Pittsburgh, PA 15251-
                                                  5835.
------------------------------------------------------------------------
                             Earth Stations
------------------------------------------------------------------------
Transmit/Receive & Transmit                $140  FCC, Earth Station,
 Only (per authorization or                       P.O. Box 358835,
 registration).                                   Pittsburgh, PA 15251-
                                                  5835.
------------------------------------------------------------------------
                                Carriers
------------------------------------------------------------------------
1. International Bearer                   $2.00  FCC, International,
 Circuits (per active 64KB                        P.O. Box 358835,
 circuit or equivalent).                          Pittsburgh, PA 15251-
                                                  5835.
------------------------------------------------------------------------

* * * * *

    9. Section 1.1157 is amended by revising paragraphs (a) and (b) to 
read as follows:


Sec. 1.1157  Payment of charges for regulatory fees.

* * * * *
    (a) (1) The amount of the regulatory fee payment that is due with 
any application for authorization shall be the multiple of the number 
of years in the entire term of the requested license or other 
authorization multiplied by the annual fee payment required in the 
Schedule of Regulatory Fees, effective at the time the application is 
filed. Except as set forth in Sec. 1.1160, advance payments shall be 
final and shall not be readjusted during the term of the license or 
authorization, notwithstanding any subsequent increase or decrease in 
the annual amount of a fee required under the Schedule of Regulatory 
Fees.
    (2) Failure to file the appropriate regulatory fee due with an 
application for authorization will result in the return of the 
accompanying application, including an application for which the 
Commission has assigned a specific filing deadline.
    (b)(1) Payments of standard regulatory fees applicable to certain 
wireless radio, mass media, common carrier, cable and international 
services shall be filed in full on an annual basis at a time announced 
by the Commission or the Managing Director, pursuant to delegated 
authority, and published in the Federal Register.
    (2) Large regulatory fees, as annually defined by the Commission, 
may be submitted in installment payments or in a single payment on a 
date certain as announced by the Commission or the Managing Director, 
pursuant to delegated authority, and published in the Federal Register.
* * * * *

    10. Section 1.1158 is amended by revising the section heading and 
introductory paragraph to read as follows:

[[Page 46307]]

Sec. 1.1158  Form of payment for regulatory fees.

    Any regulatory fee payment must be submitted in the form of a 
check, bank draft or money order denominated in U.S. dollars and drawn 
on a United States financial institution and made payable to the 
Federal Communications Commission or by Visa, Mastercard, American 
Express or Discover credit cards only. The Commission discourages 
applicants from submitting cash payments and will not be responsible 
for cash sent through the mail. Personal or corporate checks dated more 
than six months prior to their submission to the Commission's lockbox 
bank and postdated checks will not be accepted and will be returned as 
deficient.

    11. Section 1.1160 is amended by revising paragraph (a)(1) to read 
as follows:


Sec. 1.1160  Refunds of regulatory fees.

    (a) * * *
    (1) When no regulatory fee is required or an excessive fee has been 
paid. In the case of an overpayment, the refund amount will be based on 
the applicants', permittees', or licensees' entire submission. All 
refunds will be issued to the payor named in the appropriate block of 
the FCC Form 159. Payments in excess of a regulatory fee will be 
refunded only if the overpayment is $10.00 or more.
* * * * *

    Note: The following attachments will not appear in the Code of 
Federal Regulations.

Attachment A--Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act 
(RFA),\32\-\35\ 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.\36\ The Commission sought written public comments 
on the proposals in its FY 2002 regulatory fees NPRM, including 
comments on the IRFA. This present Final Regulatory Flexibility 
Analysis (FRFA) conforms to the RFA.\37\
---------------------------------------------------------------------------

    \32\-\35\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601 et 
seq., has been amended by the Contract With America Advancement Act 
of 1996, Public Law No. 104-121, 110 Stat. 847 (1996) (CWAAA). Title 
II of the CWAAA is the Small Business Regulatory Enforcement 
Fairness Act of 1996 (SBREFA).
    \36\ 67 FR 17325 (April 10, 2002).
    \37\ 5 U.S.C. 604.
---------------------------------------------------------------------------

I. Need for, and Objectives of, the Proposed Rules

    2. This rulemaking proceeding is initiated to amend the 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. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    3. None.

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

    4. The RFA directs agencies to provide a description of and, 
where feasible, an estimate of the number of small entities that may 
be affected by the proposed rules, if adopted.\38\ The RFA defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' \39\ In addition, the term ``small business'' has 
the same meaning as the term ``small business concern'' under the 
Small Business Act.\40\ 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).\41\ A small 
organization is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
\42\ Nationwide, as of 1992, there were approximately 275,801 small 
organizations.\43\ ``Small governmental jurisdiction''\44\ generally 
means ``governments of cities, counties, towns, townships, villages, 
school districts, or special districts, with a population of less 
than 50,000.'' \45\ As of 1992, there were approximately 85,006 
governmental entities in the United States.\46\ This number includes 
38,978 counties, cities, and towns; of these, 37,566, or 96%, have 
populations of fewer than 50,000.\47\ 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 these rules.
---------------------------------------------------------------------------

    \38\ 5 U.S.C. 603(b)(3).
    \39\ 5 U.S.C. 601(6).
    \40\ 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).
    \41\ Small Business Act, 15 U.S.C. 632 (1996).
    \42\ 5 U.S.C. 601(4).
    \43\ 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).
    \44\ 47 CFR 1.1162
    \45\ 5 U.S.C. 601(5).
    \46\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census 
of Governments.''
    \47\ Id.
---------------------------------------------------------------------------

Cable Services or Systems

    5. The SBA has developed a definition of small entities for 
cable and other pay television services, which includes all such 
companies generating $11 million or less in revenue annually.\48\ 
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.\49\
---------------------------------------------------------------------------

    \48\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) codes 51321 and 51322.
    \49\ 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).
---------------------------------------------------------------------------

    6. The Commission has developed its own definition of a small 
cable system operator for purposes of rate regulation. Under the 
Commission's rules, a ``small cable company'' is one serving fewer 
than 400,000 subscribers nationwide.\50\ 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.\51\ 
Since then, some of those companies may have grown to serve over 
400,000 subscribers, and others may have been involved in 
transactions that caused them to be combined with other cable 
operators. Consequently, we estimate that there are fewer than 1,439 
small entity cable system operators.
---------------------------------------------------------------------------

    \50\ 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).
    \51\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 
1996 (based on figures for Dec. 30, 1995).
---------------------------------------------------------------------------

    7. The Communications Act of 1934, as amended, also contains a 
definition of a small cable system operator, which is ``a cable 
operator that, directly or through an affiliate, serves in the 
aggregate fewer than 1 percent of all subscribers in the United 
States and is not affiliated with any entity or entities whose gross 
annual revenues in the aggregate exceed $250,000,000.'' \52\ The 
Commission has determined that there are 68,980,000 subscribers in 
the United States.\53\ 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.\54\ Based

[[Page 46308]]

on available data, we estimate that the number of cable operators 
serving 689,800 subscribers or less totals 1,450.\55\ We do not 
request nor collect information on whether cable system operators 
are affiliated with entities whose gross annual revenues exceed 
$250,000,000,\56\ 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.
---------------------------------------------------------------------------

    \52\ 47 U.S.C. 543(m)(2).
    \53\ 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.
    \54\ Id. 47 CFR 76.1403(b).
    \55\ FCC Announces New Subscriber Count for the Definition of 
Small Cable Operator, Public Notice, DA-01-0158 (released January 
24, 2001).
    \56\ We do receive such information on a case-by-case basis only 
if a cable operator appeals a local franchise authority's finding 
that the operator does not qualify as a small cable operator 
pursuant to Sec. 76.1403(b) of the Commission's rules. See 47 CFR 
76.1403(d).
---------------------------------------------------------------------------

    8. Other Pay Services. Other pay television services are also 
classified under the North American Industry Classification System 
(NAICS) codes 51321 and 51322, which includes cable systems 
operators, closed circuit television services, direct broadcast 
satellite services (DBS),\57\ multipoint distribution systems 
(MDS),\58\ satellite master antenna systems (SMATV), and 
subscription television services.
---------------------------------------------------------------------------

    \57\ Direct Broadcast Services (DBS) are discussed with the 
international services, infra.
    \58\ Multipoint Distribution Services (MDS) are discussed with 
the mass media services, infra.
---------------------------------------------------------------------------

Wireline Competition Services and Related Entities

    9. The most reliable source of information regarding the total 
numbers of certain common carrier and related providers nationwide 
appears to be data the Commission publishes annually in its 
Telecommunications Provider Locator report, which encompasses data 
compiled from FCC Form 499-A Telecommunications Reporting 
Worksheets.\59\ According to data in the most recent report, there 
are 5,679 interstate service providers.\60\ 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.
---------------------------------------------------------------------------

    \59\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Telecommunications Provider Locator, Table 1 (November 2001).
    \60\ FCC, Telecommunications Provider Locator at Table 1.
---------------------------------------------------------------------------

    10. We have included small incumbent local exchange carriers 
(LECs) \61\ 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.'' \62\ 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.\63\ We have therefore included small 
incumbent LECs in this FRFA analysis, although we emphasize that 
this FRFA action has no effect on Commission analyses and 
determinations in other, non-RFA contexts.
---------------------------------------------------------------------------

    \61\ See 47 U.S.C. 251(h) (defining ``incumbent local exchange 
carrier'').
    \62\ 5 U.S.C. 601(3).
    \63\ Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small 
Business Act contains a definition of ``small business concern,'' 
which the RFA incorporates into its own definition of ``small 
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 
601(3) (RFA). SBA regulations interpret ``small business concern'' 
to include the concept of dominance on a national basis. 13 CFR 
121.102(b). Since 1996, out of an abundance of caution, the 
Commission has included small incumbent LECs in its regulatory 
flexibility analyses. See, e.g., Implementation of the Local 
Competition Provisions of the Telecommunications Act of 1996, CC 
Docket, 96-98, First Report and Order, 11 FCC Rcd 15499, 16144-45 
(1996), 61 FR 45476 (Aug. 29, 1996).
---------------------------------------------------------------------------

    11. Total Number of Telephone Companies Affected. The Census 
Bureau reports that, at the end of 1992, there were 3,497 firms 
engaged in providing telephone services, as defined therein, for at 
least one year.\64\ 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.''\65\ 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 these revised rules.
---------------------------------------------------------------------------

    \64\ 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).
    \65\ See generally 15 U.S.C. 632(a)(1).
---------------------------------------------------------------------------

    12. Wireline Carriers and Service Providers. The SBA has 
developed a definition of small entities for telephone 
communications companies other than radiotelephone (wireless) 
companies. The Census Bureau reports that there were 2,321 such 
telephone companies in operation for at least one year at the end of 
1992.\66\ 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.\67\ All but 26 of the 
2,321 non-radiotelephone (wireless) companies listed by the Census 
Bureau were reported to have fewer than 1,000 employees. Even if all 
26 of the remaining companies had more than 1,500 employees, there 
would still be 2,295 non-radiotelephone (wireless) companies that 
might qualify as small entities or small incumbent LECs. Although it 
seems certain that some of these carriers are not independently 
owned and operated, we are unable at this time to estimate with 
greater precision the number of wireline carriers and service 
providers that would qualify as small business concerns under SBA's 
definition. Therefore, we estimate that fewer than 2,295 small 
telephone communications companies other than radiotelephone 
(wireless) companies are small entities or small incumbent LECs that 
may be affected by these revised rules.
---------------------------------------------------------------------------

    \66\ 1992 Census, supra, at Firm Size 1-123.
    \67\ 13 CFR 121.201, NAICS codes 51331, 51333, and 51334.
---------------------------------------------------------------------------

    13. Local Exchange Carriers (LECS), Competitive Access Providers 
(CAPs), Interexchange Carriers (IXCs), Operator Service Providers 
(OSPs), Payphone Providers, and Resellers. Neither the Commission 
nor the SBA has developed a definition for small LECs, competitive 
access providers (CAPs), interexchange carriers (IXCs), operator 
service providers (OSPs), payphone providers, or resellers. The 
closest applicable definition for these carrier-types under SBA 
rules is for telephone communications companies other than 
radiotelephone (wireless) companies.\68\ 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.\69\ 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.\70\ 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 revised rules.
---------------------------------------------------------------------------

    \68\ 13 CFR 121.201, NAICS codes 51331, 51333, and 51334.
    \69\ See Telecommunications Provider Locator at Table 1.
    \70\ Telecommunications Provider Locator at Table 1. The total 
for resellers includes both toll resellers and local resellers.
---------------------------------------------------------------------------

International Services

    14. The Commission has not developed a definition of small 
entities applicable to licensees in the international services. 
Therefore, the applicable definition of small entity is generally 
the definition under the SBA rules applicable to Communications 
Services, Not Elsewhere Classified (NEC).\71\ This definition 
provides that a small entity is expressed as one with $11.0 million 
or less in annual receipts.\72\ 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.\73\

[[Page 46309]]

The Census report does not provide more precise data.
---------------------------------------------------------------------------

    \71\ An exception is the Direct Broadcast Satellite (DBS) 
Service, infra.
    \72\ 13 CFR 121.201, NAICS codes 48531, 513322, 51334, and 
51339.
    \73\ 1992 Economic Census Industry and Enterprise Receipts Size 
Report, Table 2D, NAICS codes 48531, 513322, 51334, and 513391 (U.S. 
Bureau of the Census data under contract to the Office of Advocacy 
of the U.S. Small Business Administration).
---------------------------------------------------------------------------

    15. International Broadcast Stations. Commission records show 
that there are 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.
    16. International Public Fixed Radio (Public and Control 
Stations). There is one licensee in this service subject to payment 
of regulatory fees, and the licensee does not constitute a small 
business under the SBA definition.
    17. Fixed Satellite Transmit/Receive Earth Stations. There are 
approximately 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.
    18. 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.
    19. Fixed Satellite Very Small Aperture Terminal (VSAT) Systems. 
These stations operate on a primary basis, and frequency 
coordination with terrestrial microwave systems is not required. 
Thus, a single ``blanket'' application may be filed for a specified 
number of small antennas and one or more hub stations. There are 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.
    20. 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.
    21. Radio Determination Satellite Earth Stations. There are four 
licensees. We do not request nor collect annual revenue information, 
and are unable to estimate the number of radio determination 
satellite earth stations that would constitute a small business 
under the SBA definition.
    22. Space Stations (Geostationary). There are presently 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.
    23. 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.
    24. Direct Broadcast Satellites. Because DBS provides 
subscription services, DBS falls within the SBA-recognized 
definition of ``Cable and Other Pay Television Services.'' \74\ This 
definition provides that a small entity is one with $11.0 million or 
less in annual receipts.\75\ 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.
---------------------------------------------------------------------------

    \74\ 13 CFR 121.201, NAICS codes 51321 and 51322.
    \75\ 13 CFR 121.201, NAICS codes 51321 and 51322.
---------------------------------------------------------------------------

Media Services

    25. Commercial Radio and Television Services. The proposed rules 
and policies will apply to television broadcasting licensees and 
radio broadcasting licensees.\76\ The SBA defines a television 
broadcasting station that has $10.5 million or less in annual 
receipts as a small business.\77\ Television broadcasting stations 
consist of establishments primarily engaged in broadcasting visual 
programs by television to the public, except cable and other pay 
television services.\78\ Included in this industry are commercial, 
religious, educational, and other television stations.\79\ Also 
included are establishments primarily engaged in television 
broadcasting and which produce taped television program 
materials.\80\ Separate establishments primarily engaged in 
producing taped television program materials are classified under 
another NAICS number.\81\ There were 1,509 television stations 
operating in the nation in 1992.\82\ 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.\83\ For 1992,\84\ the number of television stations that 
produced less than $10.0 million in revenue was 1,155 
establishments.\85\ Only commercial stations are subject to 
regulatory fees.
---------------------------------------------------------------------------

    \76\ 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 Report and 
Order 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 
Report and Order, 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).
    \77\ 13 CFR 121.201, NAICS code 51312.
    \78\ 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).
    \79\ 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.
    \80\ 1992 Census, Series UC92-S-1, at Appendix A-9.
    \81\ 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).
    \82\ FCC News Release No. 31327 (January 13, 1993); 1992 Census, 
Series UC92-S-1, at Appendix A-9.
    \83\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2001.''
    \84\ 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.
    \85\ The amount of $10 million was used to estimate the number 
of small business establishments because the relevant Census 
categories stopped at $9,999,999 and began at $10,000,000. No 
category for $10.5 million existed. Thus, the number is as accurate 
as it is possible to calculate with the available information.
---------------------------------------------------------------------------

    26. Additionally, the SBA defines a radio broadcasting station 
that has $5 million or less in annual receipts as a small 
business.\86\ A radio broadcasting station is an establishment 
primarily engaged in broadcasting aural programs by radio to the 
public.\87\ Included in this industry are commercial, religious, 
educational, and other radio stations.\88\ Radio broadcasting 
stations, which primarily are engaged in radio broadcasting and 
which produce radio program materials, are similarly included.\89\ 
However, radio stations which are separate establishments and are 
primarily engaged in producing radio program material are classified 
under another NAICS number.\90\ 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.\91\ Official Commission 
records indicate that at total of 11,334 individual radio stations 
were operating in

[[Page 46310]]

1992.\92\ 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.\93\ Only commercial stations are subject to regulatory 
fees.
---------------------------------------------------------------------------

    \86\ 13 CFR 121.201, NAICS codes 513111 and 513112.
    \87\ 1992 Census, Series UC92-S-1, at Appendix A-9.
    \88\ Id.
    \89\ Id.
    \90\ Id.
    \91\ 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.
    \92\ FCC News Release, No. 31327 (Jan. 13, 1993).
    \93\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2001.''
---------------------------------------------------------------------------

    27. The rules may affect an estimated total of 1,230 television 
stations, approximately 1,281 of which are considered small 
businesses.\94\ The revised rules will also affect an estimated 
total of 10,819 radio stations, approximately 12,209 of which are 
small businesses.\95\ 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).\96\ Given the nature of this service, we 
will presume that all LPTV licensees qualify as small entities under 
the SBA definition.
---------------------------------------------------------------------------

    \94\ 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.
    \95\ 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.
    \96\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2001.''
---------------------------------------------------------------------------

    28. Auxiliary, Special Broadcast and Other Program Distribution 
Services. This service involves a variety of transmitters, generally 
used to relay broadcast programming to the public (through 
translator and booster stations) or within the program distribution 
chain (from a remote news gathering unit back to the station). The 
Commission has not developed a definition of small entities 
applicable to broadcast auxiliary licensees. The applicable 
definitions of small entities are those, noted previously, under the 
SBA rules applicable to radio broadcasting stations and television 
broadcasting stations.\97\
---------------------------------------------------------------------------

    \97\ 13 CFR 121.201, NAICS codes 513111 and 513112.
---------------------------------------------------------------------------

    29. 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.\98\
---------------------------------------------------------------------------

    \98\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    30. Multipoint Distribution Service (MDS). This service has 
historically provided primarily point-to-multipoint and one-way 
video services to subscribers.\99\ 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.\100\ In connection 
with the 1996 MDS auction, the Commission defined small businesses 
as entities that had annual average gross revenues for the three 
preceding years not in excess of $40 million.\101\ The Commission 
established this small business definition in the context of this 
particular service and with the approval of the SBA.\102\ The MDS 
auction resulted in 67 successful bidders obtaining licensing 
opportunities for 493 Basic Trading Areas (BTAs).\103\ 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.\104\ 
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 these 
revised rules.
---------------------------------------------------------------------------

    \99\ 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.
    \100\ 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).
    \101\ 47 CFR 21.961 and 1.2110.
    \102\ 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).
    \103\ 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.
    \104\ 47 U.S.C. 309(j). (Hundreds of stations were licensed to 
incumbent MDS licensees prior to implementation of Section 309(j) of 
the Communications Act of 1934, 47 U.S.C. Section 309(j). For these 
pre-auction licenses, the applicable standard is SBA's small 
business size standard for ``other telecommunications'' (annual 
receipts of $11 million or less). See 13 CFR 121.201.
---------------------------------------------------------------------------

Wireless and Commercial Mobile Services

    31. Cellular Licensees. Neither the Commission nor the SBA has 
developed a definition of small entities specific to cellular 
licensees. Therefore, the applicable definition of small entity is 
the definition under the SBA rules applicable to radiotelephone 
(wireless) companies. This provides that a small entity is a 
radiotelephone (wireless) company employing no more than 1,500 
persons.\105\ 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.\106\ 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.\107\ 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 these revised 
rules.
---------------------------------------------------------------------------

    \105\ 13 CFR 121.201, NAICS code 513322.
    \106\ 1992 Census, Series UC92-S-1, at Table 5, NAICS code 
513322.
    \107\ Telecommunications Provider Locater, Table 1 (November 
2001).
---------------------------------------------------------------------------

    32. 220 MHz Radio Service--Phase I Licensees. The 220 MHz 
service has both Phase I and Phase II licenses. Phase I licensing 
was conducted by lotteries in 1992 and 1993. There are approximately 
1,515 such non-nationwide licensees and four nationwide licensees 
currently authorized to operate in the 220 MHz band. The Commission 
has not developed a definition of small entities specifically 
applicable to such incumbent 220 MHz Phase I licensees. To estimate 
the number of such licensees that are small businesses, we apply the 
definition under the SBA rules applicable to Radiotelephone 
(wireless) Communications companies. This definition provides that a 
small entity is a radiotelephone (wireless) company employing no 
more than 1,500 persons.\108\ 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.\109\ 
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.
---------------------------------------------------------------------------

    \108\ 13 CFR 121.201, NAICS code 513322.
    \109\ 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.
---------------------------------------------------------------------------

    33. 220 MHz Radio Service--Phase II Licensees. The Phase II 220 
MHz service is a new service, and is subject to spectrum auctions. 
In the 220 MHz Third Report and Order, 62 FR 16004, April 3, 1997, 
we adopted criteria for defining small and very

[[Page 46311]]

small businesses for purposes of determining their eligibility for 
special provisions such as bidding credits and installment 
payments.\110\ 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.\111\ The SBA has approved these definitions.\112\ Auctions of 
Phase II licenses commenced on September 15, 1998, and closed on 
October 22, 1998.\113\ 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.\114\ 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.\115\
---------------------------------------------------------------------------

    \110\ 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-
70, at paragraphs 291-295 (1997).
    \111\ 220 MHz Third Report and Order, 12 FCC Rcd at 11068-69, 
paragraph 291.
    \112\ See Letter to D. Phython, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(January 6, 1998).
    \113\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Public Notice, 14 FCC Rcd 605 (1998).
    \114\ 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).
    \115\ ``Phase II 220 MHz Service Spectrum Auction Closes'', 
Public Notice, 14 FCC Rcd 11218 (1999).
---------------------------------------------------------------------------

    34. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band 
Order, we adopted criteria for defining small businesses and very 
small businesses for purposes of determining their eligibility for 
special provisions such as bidding credits and installment 
payments.\116\ We have defined a small business as an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues not exceeding $15 million for the preceding three 
years. Additionally, a very small business is defined as an entity 
that, together with its affiliates and controlling principals, has 
average gross revenues that are not more than $3 million for the 
preceding three years. An auction of 52 Major Economic Area (MEA) 
licenses commenced on September 6, 2000, and closed on September 21, 
2000.\117\ 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.\118\
---------------------------------------------------------------------------

    \116\ 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).
    \117\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Report No. WT 98-36 (Wireless Telecommunications Bureau, 
October 23, 1998).
    \118\ ``700 MHz Guard Bands Auction Closes,'' Public Notice, DA 
01-478 (rel. February 22, 2001).
---------------------------------------------------------------------------

    35. Private and Common Carrier Paging. In the Paging Third 
Report and Order, we adopted criteria for defining small businesses 
and very small businesses for purposes of determining their 
eligibility for special provisions such as bidding credits and 
installment payments.\119\ 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.\120\ The SBA has 
approved these definitions.\121\ An auction of Metropolitan Economic 
Area licenses commenced on February 24, 2000, and closed on March 2, 
2000.\122\ 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.\123\ 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.
---------------------------------------------------------------------------

    \119\ 220 MHz Third Report and Order, 62 FR 16004 (April 3, 
1997), at paragraphs 291-295.
    \120\ 700 MHz Guard Band Auction Closes,'' Public Notice, 15 FCC 
Rcd 18026 (2000).
    \121\ ``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).
    \122\ ``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).
    \123\ See Telecommunications Provider Locater at Table 1 
(November 2001).
---------------------------------------------------------------------------

    36. Broadband Personal Communications Service (PCS). The 
broadband PCS spectrum is divided into six frequencies designated A 
through F, and the Commission has held auctions for each block. The 
Commission defined ``small entity'' for Blocks C and F as an entity 
that has average gross revenues of less than $40 million in the 
three previous calendar years.\124\ 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.\125\ These regulations defining ``small entity'' in 
the context of broadband PCS auctions have been approved by the 
SBA.\126\ 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.\127\ 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.\128\ The SBA 
approved this definition.'' \129\ 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.
---------------------------------------------------------------------------

    \124\ See generally ``929 and 931 MHz Paging Auction Closes,'' 
Public Notice, 15 FCC Rcd 4858 (2000).
    \125\ 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).
    \126\ 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).
    \127\ FCC News, Broadband PCS, D, E and F Block Auction Closes, 
No. 71744 (released January 14, 1997).
    \128\ 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).
    \129\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
---------------------------------------------------------------------------

    37. Narrowband PCS. To date, two auctions of narrowband PCs 
licenses have been conducted. Through these auctions, the Commission 
has awarded a total of 41 licenses, out of which 11 were obtained by 
small businesses. For purposes of the two auctions that have already 
been held, small businesses were defined as entities with average 
gross revenues for the prior three calendar years of $40 million or 
less. To ensure meaningful participation of small business entities 
in the auctions, the

[[Page 46312]]

Commission adopted a two-tiered definition of small businesses in 
the Narrowband PCS Second Report and Order. \130\ 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. 
\131\ In the future, the Commission will auction 459 licenses to 
serve Metropolitan Trading Areas (MTAs) and 408 response channel 
licenses. There is also one megahertz of narrowband PCS spectrum 
that has been held in reserve and that the Commission has not yet 
decided to release for licensing. The Commission cannot predict 
accurately the number of licenses that will be awarded to small 
entities in future auctions.
    However, four of the 16 winning bidders in the two previous 
narrowband PCS auctions were small businesses, as that term was 
defined under the Commission's Rules. The Commission assumes, for 
purposes of this 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.
---------------------------------------------------------------------------

    \130\ 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. PP93-253, Second Report and Order 
and Second Further Notice of Proposed Rulemaking, 65 FR 35875 (June 
6, 2000).
    \131\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
---------------------------------------------------------------------------

    38. Rural Radiotelephone Service. The Commission has not adopted 
a definition of small entity specific to the Rural Radiotelephone 
Service. \132\ A significant subset of the Rural Radiotelephone 
Service is the Basic Exchange Telephone Radio Systems (BETRS). \133\ 
We will use the SBA's definition applicable to radiotelephone 
(wireless) companies, i.e., an entity employing no more than 1,500 
persons. \134\ 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.
---------------------------------------------------------------------------

    \132\ The service is defined in Sec. 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \133\ BETRS is defined in Secs. 22.757 and 22.759 of the 
Commission's Rules, 47 CFR 22.757 and 22.759.
    \134\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
---------------------------------------------------------------------------

    39. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service. \135\ We will use the SBA's definition 
applicable to radiotelephone (wireless) companies, i.e., an entity 
employing no more than 1,500 persons. \136\ 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.
---------------------------------------------------------------------------

    \135\ The service is defined in Sec. 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \136\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
---------------------------------------------------------------------------

    40. Specialized Mobile Radio (SMR). Pursuant to 47 CFR 
90.814(b)(1), the Commission has defined ``small business'' for 
purposes of auctioning 900 MHz SMR licenses, 800 MHz SMR licenses 
for the upper 200 channels, and 800 MHz SMR licenses for the lower 
230 channels on the 800 MHz band, as a firm that has had average 
annual gross revenues of $15 million or less in the three preceding 
calendar years. \137\ The SBA has approved this small business size 
standard for the 800 MHz and 900 MHz auctions. \138\ 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. \139\ 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. 
\140\ 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.
---------------------------------------------------------------------------

    \137\ 47 CFR 90.814(b)(1).
    \138\ See Letter to Thomas J. Sugrue, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(August 10, 1999).
    \139\ See Letter to Daniel B. Phython, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(October 27, 1997).
    \140\ Id.
---------------------------------------------------------------------------

    41. These revised fees in the Report and Order apply to SMR 
providers in the 800 MHz and 900 MHz bands that either hold 
geographic area licenses or have obtained extended implementation 
authorizations. We do not know how many firms provide 800 MHz or 900 
MHz geographic area SMR service pursuant to extended implementation 
authorizations, nor how many of these providers have annual revenues 
of no more than $15 million. One firm has over $15 million in 
revenues. We assume, for purposes of this FRFA, that all of the 
remaining existing extended implementation authorizations are held 
by small entities, as that term is defined by the SBA.
    42. Private Land Mobile Radio (PLMR). PLMR systems serve an 
essential role in a range of industrial, business, land 
transportation, and public safety activities. These radios are used 
by companies of all sizes operating in all U.S. business categories. 
The Commission has not developed a definition of small entity 
specifically applicable to PLMR licensees due to the vast array of 
PLMR users. For the purpose of determining whether a licensee is a 
small business as defined by the SBA, each licensee would need to be 
evaluated within its own business area.
    43. The Commission is unable at this time to estimate the number 
of small businesses which could be impacted by the rules. The 
Commission's 1994 Annual Report on PLMRs \141\ 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.
---------------------------------------------------------------------------

    \141\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at paragraph 116.
---------------------------------------------------------------------------

    44. Amateur Radio Service. We estimate that 8,000 applicants 
will apply for vanity call signs in FY 2001. These licensees are 
presumed to be individuals, and therefore not small entities. All 
other amateur licensees are exempt from payment of regulatory fees.
    45. Aviation and Marine Radio Service. Small businesses in the 
aviation and marine radio services use a marine very high frequency 
(VHF) radio, any type of emergency position indicating radio beacon 
(EPIRB) and/or radar, a VHF aircraft radio, and/or any type of 
emergency locator transmitter (ELT). The Commission has not 
developed a definition of small entities specifically applicable to 
these small businesses. The applicable definition of small entity is 
the definition under the SBA rules for radiotelephone (wireless) 
communications. \142\
---------------------------------------------------------------------------

    \142\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
---------------------------------------------------------------------------

    46. Most applicants for recreational licenses are individuals. 
Approximately 581,000 ship station licensees and 131,000 aircraft 
station licensees operate domestically and are not subject to the 
radio carriage requirements of any statute or treaty. For purposes 
of our evaluations and conclusions in this FRFA, we estimate that 
there may be at least 712,000 potential licensees which are 
individuals or are small entities, as that term is defined by the 
SBA. We estimate that only 16,800 will be subject to FY 2001 
regulatory fees.
    47. Fixed Microwave Services. Microwave services include common 
carrier, \143\ private-operational fixed, \144\ and broadcast 
auxiliary radio services. \145\ At present, there are

[[Page 46313]]

approximately 22,015 common carrier fixed licensees and 61,670 
private operational-fixed licensees and broadcast auxiliary radio 
licensees in the microwave services. The Commission has not yet 
defined a small business with respect to microwave services. For 
purposes of this FRFA, we will use the SBA's definition applicable 
to radiotelephone (wireless) companies--i.e., an entity with no more 
than 1,500 persons. \146\ 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.
---------------------------------------------------------------------------

    \143\ 47 CFR 101 et seq. (formerly, part 21 of the Commission's 
Rules).
    \144\ 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.
    \145\ 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.
    \146\ 13 CFR 121.201, NAICS codes 513321, 513322, 51333.
---------------------------------------------------------------------------

    48. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, 
highway maintenance, and emergency medical services. \147\ There are 
a total of approximately 127,540 licensees within these services. 
Governmental entities \148\ as well as private businesses comprise 
the licensees for these services. As indicated supra in paragraph 
four of this FRFA, all governmental entities with populations of 
less than 50,000 fall within the definition of a small entity. \149\ 
All licensees in this category are exempt from the payment of 
regulatory fees.
    49. Personal Radio Services. Personal radio services provide 
short-range, low power radio for personal communications, radio 
signaling, and business communications not provided for in other 
services. The services include the citizen's band (CB) radio 
service, general mobile radio service (GMRS), radio control radio 
service, and family radio service (FRS). \150\ 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.
---------------------------------------------------------------------------

    \147\ 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.
    \148\ 47 CFR 1.1162.
    \149\ 5 U.S.C. 601(5).
    \150\ 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.
---------------------------------------------------------------------------

    50. Offshore Radiotelephone Service. This service operates on 
several UHF TV broadcast channels that are not used for TV 
broadcasting in the coastal areas of states bordering the Gulf of 
Mexico. \151\ 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.
---------------------------------------------------------------------------

    \151\ This service is governed by subpart I of part 22 of the 
Commission's Rules. See 47 CFR 22.1001 through 22.1037.
---------------------------------------------------------------------------

    51. Wireless Communications Services. This service can be used 
for fixed, mobile, radiolocation and digital audio broadcasting 
satellite uses. The Commission defined ``small business'' for the 
wireless communications services (WCS) auction as an entity with 
average gross revenues of $40 million for each of the three 
preceding years, and a ``very small business'' as an entity with 
average gross revenues of $15 million for each of the three 
preceding years. The SBA has approved these definitions. \152\ 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.
---------------------------------------------------------------------------

    \152\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
---------------------------------------------------------------------------

    52. 39 GHz Service. The Commission defined ``small entity'' for 
39 GHz licenses as an entity that has average gross revenues of less 
than $40 million in the three previous calendar years. \153\ 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. \154\ 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.
---------------------------------------------------------------------------

    \153\ 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).
    \154\ Id.
---------------------------------------------------------------------------

    53. Local Multipoint Distribution Service. The auction of the 
1,030 Local Multipoint Distribution Service (LMDS) licenses began on 
February 18, 1998 and closed on March 25, 1998. The Commission 
defined ``small entity'' for LMDS licenses as an entity that has 
average gross revenues of less than $40 million in the three 
previous calendar years. \155\ 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. \156\ These 
regulations defining ``small entity'' in the context of LMDS 
auctions have been approved by the SBA. \157\ 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.
---------------------------------------------------------------------------

    \155\ See Local Multipoint Distribution Service, Second Report 
and Order, 62 FR 23148, April 29, 1997.
    \156\ Id.
    \157\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(January 6, 1998).
---------------------------------------------------------------------------

    54. 218-219 MHz Service. The first auction of 218-219 MHz 
spectrum resulted in 170 entities winning licenses for 595 
Metropolitan Statistical Area (MSA) licenses. Of the 594 licenses, 
557 were won by entities qualifying as a small business. For that 
auction, we defined a small business as an entity that, together 
with its affiliates, has no more than a $6 million net worth and, 
after federal income taxes (excluding any carry over losses), has no 
more than $2 million in annual profits each year for the previous 
two years. \158\ 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. \159\ 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

[[Page 46314]]

not to exceed $3 million for the preceding three years. \160\ 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 by 
these revised rules.
---------------------------------------------------------------------------

    \158\ 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).
    \159\ 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).
    \160\ 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

    55. With certain exceptions, the Commission's Schedule of 
Regulatory Fees applies to all Commission licensees and regulatees. 
Most licensees will be required to count the number of licenses or 
call signs authorized, complete and submit an FCC Form 159 (``FCC 
Remittance Advice''), and pay a regulatory fee based on the number 
of licenses or call signs. \161\ Interstate telephone service 
providers must compute their annual regulatory fee based on their 
interstate and international end-user revenue using information they 
already supply to the Commission in compliance with the Form 499-A, 
Telecommunications Reporting Worksheet, and they must complete and 
submit the FCC Form 159. Compliance with the fee schedule will 
require some licensees to tabulate the number of units (e.g., 
cellular telephones, pagers, cable TV subscribers) they have in 
service, and complete and submit an FCC Form 159. Licensees 
ordinarily will keep a list of the number of units they have in 
service as part of their normal business practices. No additional 
outside professional skills are required to complete the FCC Form 
159, and it can be completed by the employees responsible for an 
entity's business records.
---------------------------------------------------------------------------

    \161\ The following categories are exempt from the Commission's 
Schedule of Regulatory Fees: Amateur radio licensees (except 
applicants for vanity call signs) and operators in other non-
licensed services (e.g., Personal Radio, part 15, ship and 
aircraft). Governments and non-profit (exempt under section 501(c) 
of the Internal Revenue Code) entities are exempt from payment of 
regulatory fees and need not submit payment. Non-commercial 
educational broadcast licensees are exempt from regulatory fees as 
are licensees of auxiliary broadcast services such as low power 
auxiliary stations, television auxiliary service stations, remote 
pickup stations and aural broadcast auxiliary stations where such 
licenses are used in conjunction with commonly owned non-commercial 
educational stations. Emergency Alert System licenses for auxiliary 
service facilities are also exempt as are instructional television 
fixed service licensees. Regulatory fees are automatically waived 
for the licensee of any translator station that: (1) is not licensed 
to, in whole or in part, and does not have common ownership with, 
the licensee of a commercial broadcast station; (2) does not derive 
income from advertising; and (3) is dependent on subscriptions or 
contributions from members of the community served for support. 
Receive only earth station permittees are exempt from payment of 
regulatory fees. A regulatee will be relieved of its fee payment 
requirement if its total fee due, including all categories of fees 
for which payment is due by the entity, amounts to less than $10.
---------------------------------------------------------------------------

    56. Each licensee must submit the FCC Form 159 to the 
Commission's lockbox bank after computing the number of units 
subject to the fee. Licensees may also file electronically to 
minimize the burden of submitting multiple copies of the FCC Form 
159. Applicants who pay small fees in advance and provide fee 
information as part of their application must use FCC Form 159.
    57. Licensees and regulatees are advised that failure to submit 
the required regulatory fee in a timely manner will subject the 
licensee or regulatee to a late payment penalty of 25 percent in 
addition to the required fee. \162\ If payment is not received, new 
or pending applications may be dismissed, and existing 
authorizations may be subject to rescission. \163\ 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. \164\ 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. \165\
---------------------------------------------------------------------------

    \162\ 47 CFR 1.1164.
    \163\ 47 CFR 1.1164(c).
    \164\ Public Law 104-134, 110 Stat. 1321 (1996).
    \165\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

    58. 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. \166\ 
However, timely submission of the required regulatory fee must 
accompany requests for waivers or reductions. This will avoid any 
late payment penalty if the request is denied. The fee will be 
refunded if the request is granted. In exceptional and compelling 
instances (where payment of the regulatory fee along with the waiver 
or reduction request could result in reduction of service to a 
community or other financial hardship to the licensee), the 
Commission will defer payment in response to a request filed with 
the appropriate supporting documentation.
---------------------------------------------------------------------------

    \166\ 47 CFR 1.1166.
---------------------------------------------------------------------------

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

    59. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed 
approach, which may include the following four alternatives: (1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small 
entities; (3) the use of performance, rather than design, standards; 
and (4) an exemption from coverage of the rule, or any part thereof, 
for small entities. As described in Section IV of this 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.
    60. The Omnibus Consolidated and Emergency Supplemental 
Appropriations Act for FY 2000, Public Law 106-553, requires the 
Commission to revise its Schedule of Regulatory Fees in order to 
recover the amount of regulatory fees that Congress, pursuant to 
Section 9(a) of the Communications Act, as amended, has required the 
Commission to collect for Fiscal Year (FY) 2002.\167\ As noted, we 
have previously sought comment on the proposed methodology for 
implementing these statutory requirements and any other potential 
impact of these proposals on small entities.
---------------------------------------------------------------------------

    \167\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    61. With the use of actual cost accounting data for computation 
of regulatory fees, we found that some fees which were very small in 
previous years would have increased dramatically and would have a 
disproportionate impact on smaller entities. The methodology we are 
adopting in this Report and Order minimizes this impact by limiting 
the amount of increase and shifting costs to other services which, 
for the most part, are larger entities.
    62. Several categories of licensees and regulatees are exempt 
from payment of regulatory fees. See, e.g., footnote 161, supra, and 
Attachment F of the Report and Order, infra.
    Report to Small Business Administration: The Commission will 
send a copy of this Report and Order, including a copy of the FRFA 
to the Chief Counsel for Advocacy of the Small Business 
Administration. The Report and Order and FRFA (or summaries thereof) 
will also be published in the Federal Register.
    Report to Congress: The Commission will send a copy of this 
Final Regulatory Flexibility Analysis, along with this Report and 
Order, in a report to Congress pursuant to the Congressional Review 
Act, 5 U.S.C. 801(a)(1)(A).

[[Page 46315]]

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 ,\168\ 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
 Domestic Public Fixed.          (Aircraft) 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 Boosters....  Based on actual FY 2001 payment units.
Auxiliaries...................  Based on Wireless Telecommunications
                                 Bureau estimates.
MDS/LMDS/MMDS.................  Based on Mass Media Bureau estimates.
Cable Antenna Relay Device      Based on Wireline Competition Bureau
 (CARS).                         (previously Cable Services Bureau)
                                 estimates.
Cable Television System         Based on Wireline Competition Bureau
 Subscribers.                    (previously Cable Services Bureau) and
                                 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 Wireline Competition
                                 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.
International HF Broadcast      Based on International Bureau estimates.
 Stations, International
 Public Fixed Radio Service.
------------------------------------------------------------------------
\168\ The Wireless Telecommunications Bureau's staff advises that they
  anticipate receiving only 25 applications for 218-219 MHz (formerly
  IVDS) in FY 2001.


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              FY 2001      Pro-rated FY    Computed new   Rounded new FY
             Fee category                FY 2002 payment   Payment years      revenue      2002 revenue       FY 2002          2002         Expected Fy
                                              units                          estimate       requirement   regulatory fee  regulatory fee   2002 revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
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

[[Page 46316]]

 
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      66,544,000,000               1      93,387,376     102,072,402         0.00153         0.00153     102,072,402
 Providers............................
CMRS Mobile Services (Cellular/Public        125,000,000               1      27,404,520      29,953,140            0.24            0.24      29,953,140
 Mobile)..............................
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)....                 6               1         566,550         619,239         103,207         103,200         619,200
                                       -----------------------------------------------------------------------------------------------------------------
      Total Estimated Revenue to be     ................  ..............     201,214,514     219,927,464  ..............  ..............     219,571,972
       Collected......................
      Total Revenue Requirement.......  ................  ..............  ..............     218,757,000  ..............  ..............     218,757,000
      Difference......................  ................  ..............  ..............       1,170,464  ..............  ..............         814,972
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note.--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

------------------------------------------------------------------------
                                                              Annual
                      Fee category                        regulatory fee
------------------------------------------------------------------------
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 part                5
 95)....................................................
Rural Radio (47 CFR part 22) (previously listed under                  5
 the Land Mobile category)..............................
PLMRS (Shared Use) (per license) (47 CFR part 90).......               5
Aviation (Aircraft) (per station) (47 CFR part 87)......               5
Aviation (Ground) (per license) (47 CFR part 87)........              10
Amateur Vanity Call Signs (per call sign) (47 CFR part              1.45
 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, 22,             .08
 24 and 90).............................................
Multipoint Distribution Services (MMDS, LMDS & MDS) (per             430
 call sign) (47 CFR part 21)............................
AM Radio Construction Permits...........................             370

[[Page 46317]]

 
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 part              320
 74)....................................................
Broadcast Auxiliary (47 CFR part 74)....................              10
CARS (47 CFR part 78)...................................              65
Cable Television Systems (per subscriber) (47 CFR part               .53
 76)....................................................
Interstate Telecommunication Service Providers (per               .00153
 revenue dollar)........................................
Earth Stations (47 CFR part 25).........................             140
Space Stations (per operational station in geostationary          99,700
 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-                   103,200
 geostationary orbit) (47 CFR part 25)..................
International Bearer Circuits (per active 64KB circuit).               2
International Public Fixed (per call sign) (47 CFR part            1,400
 23)....................................................
International (HF) Broadcast (47 CFR part 73)...........             495
------------------------------------------------------------------------


                                                          FY 2002 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM Classes A,   FM Classes B,
                    Population Served                       AM Class A      AM Class B      AM Class C      AM Class D        B1 & C3       C, C1 & 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
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Attachment E--Comparison Between FY 2001, FY 2002 Proposed and 
Final 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               5
Microwave (per license) (47 CFR part 101).......................         5              10              10
218-219 MHz (Formerly Interactive Video Data Service) (per              10              25              25
 license) (47 CFR part 95)......................................
Marine (Ship) (per station) (47 CFR part 80)....................        10              10              10
Marine (Coast) (per license) (47 CFR part 80)...................         5              10              10
General Mobile Radio Service (per license) (47 CFR part 95).....         5               5               5
Rural Radio (47 CFR part 22) (previously listed under Land               5               5               5
 Mobile)........................................................
PLMRS (Shared Use) (47 CFR part 90).............................         5               5               5
Aviation (Aircraft) (per station) (47 CFR part 87)..............         5               5               5
Aviation (Ground) (per license) (47 CFR part 87)................        10              10              10
Amateur Vanity Call Signs (per call sign) (47 CFR part 97)......         1.20            1.45            1.45
CMRS Mobile Services (per unit) (47 CFR parts 20, 22, 24, 27, 80          .27             .24             .24
 and 90)........................................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and           .05             .08             .08
 90)............................................................
Multipoint Distribution Services (Includes MMDS, LMDS & MDS)           450             430             430
 (per call sign) (47 CFR part 21)...............................
AM Construction Permits.........................................       280             370             370
FM Construction Permits.........................................       925           1,500           1,500
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10................................................    45,100          47,050          47,050
    Markets 11-25...............................................    32,825          34,700          34,700
    Markets 26-50...............................................    21,325          23,625          23,625
    Markets 51-100..............................................    13,750          15,150          15,150
    Remaining Markets...........................................     3,275           3,525           3,525
    Construction Permits........................................     3,075           2,750           2,750

[[Page 46318]]

 
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10................................................    15,150          12,800          12,800
    Markets 11-25...............................................    12,300          10,300          10,300
    Markets 26-50...............................................     7,075           6,600           6,600
    Markets 51-100..............................................     4,075           3,875           3,875
    Remaining Markets...........................................     1,150           1,075           1,075
    Construction Permits........................................     4,000           5,175           5,175
Satellite Television Stations (All Markets).....................       740             805             805
Construction Permits--Satellite Television Stations.............       480             420             420
Low Power TV, TV/FM Translators & Boosters (47 CFR part 74).....       305             320             320
Broadcast Auxiliary (47 CFR part 74)............................        10              10              10
CARS (47 CFR part 78)...........................................        55              65              65
Earth Stations (47 CFR part 25).................................       180             140             140
Cable Television Systems (per subscriber) (47 CFR part 76)......          .49             .53             .53
Interstate Telecommunication Service Providers (per revenue               .00132          .00153          .00153
 dollar)........................................................
Space Stations (per operational station in geostationary orbit)     98,125          99,700          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         103,200
 orbit) (47 CFR part 25)........................................
International Bearer Circuits (per active 64KB circuit).........         5               2               2
International Public Fixed (per call sign) (47 CFR part 23).....     1,275           1,400           1,400
International (HF) Broadcast (47 CFR part 73)...................       680             495             495
----------------------------------------------------------------------------------------------------------------


                                                          FY 2001 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM Classes A,   FM Classes B,
                    Population served                       AM Class A      AM Class B      AM Class C      AM Class D        B1 & C3       C, C1 & 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 2001 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM Classes A,   FM Classes B,
                    Population served                       AM Class A      AM Class B      AM Class C      AM Class D        B1 & C3       C, C1 & 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
--------------------------------------------------------------------------------------------------------------------------------------------------------

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,\169\ as modified in the instant Report 
and Order. 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.\170\
---------------------------------------------------------------------------

    \169\ 47 U.S.C. 159(g).
    \170\ 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.

[[Page 46319]]

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.\171\ 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.
---------------------------------------------------------------------------

    \171\ 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).\172\ 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.\173\ The total regulatory fee due is 
$50 for the ten-year term.
---------------------------------------------------------------------------

    \172\ 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.
    \173\ 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 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

[[Page 46320]]

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.\174\ 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.
d. Commercial Wireless Radio Services
---------------------------------------------------------------------------

    \174\ 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.
---------------------------------------------------------------------------

    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);\175\ 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.
---------------------------------------------------------------------------

    \175\ 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 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. Media Services

    17. The regulatory fees for the 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.\176\ 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

[[Page 46321]]

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:
---------------------------------------------------------------------------

    \176\ 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  A,  FM classes  B,
                    Population served                       AM class A      AM class B      AM class C      AM class D        B1 & C3       C, C1 & 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 in the above table.
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 in the above table.
d. Commercial Television Stations
    22. This category includes licensed Commercial VHF and UHF 
Television Stations covered under part 73 of the Commission's Rules, 
except commonly owned Television Satellite Stations, addressed 
separately below. Markets are Nielsen Designated Market Areas (DMA) as 
listed in the Television & Cable Factbook, Stations Volume No. 70, 2002 
Edition, Warren Publishing, Inc., or similar source. The fees for each 
station categories 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 (or similar source) 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.



[[Page 46322]]


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.\177\ 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.
---------------------------------------------------------------------------

    \177\ 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 a $10 annual 
regulatory fee on a per call sign basis.
k. Multipoint Distribution Service
    29. This category includes Multipoint Distribution Service (MDS), 
Local Multipoint Distribution 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.\178\ 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, the number of 
individual households in multiple dwelling units, e.g., apartments, 
condominiums, mobile home parks, etc., paying at the basic subscriber 
rate, the number of bulk rate customers and the number of courtesy or 
fee customers. In order to determine the number of bulk rate 
subscribers, a system should divide its bulk rate charge by the annual 
subscription rate for individual households. See FY 1994 Report and 
Order, Appendix B at paragraph 31.\179\
---------------------------------------------------------------------------

    \178\ 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.
    \179\ 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. Wireline Competition 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.\180\ 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

[[Page 46323]]

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:
---------------------------------------------------------------------------

    \180\ 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).

                    Calendar 2001 Revenue Information
                     [show amounts in whole dollars]
------------------------------------------------------------------------
                             Name                                Amount
------------------------------------------------------------------------
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 in Block 11 universal service pass-through
 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)--``FCCCode
 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 factor     .00153
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.

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.\181\ 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.
---------------------------------------------------------------------------

    \181\ 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 
ooperate in a stationary (fixed) mode. Both are assessed the same 
regulatory fee for FY 2001.
---------------------------------------------------------------------------

    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 $103,200 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 
\182\ at paragraph 75 we retained our requirement that licensees of 
LEOs pay the LEO regulatory fee upon their certification of operation 
of a single satellite pursuant to section 25.120(d). We require payment 
of this fee following commencement of operations

[[Page 46324]]

of a system's first satellite to insure that we recover our regulatory 
costs related to LEO systems from licensees of these systems as early 
as possible so that other regulatees are not burdened with these costs 
any longer than necessary. Because section 25.120(d) has significant 
implications beyond regulatory fees (such as whether the entire planned 
cluster is operational in accordance with the terms and conditions of 
the license) we previously clarified our definition of an operational 
LEO satellite to prevent misinterpretation of our intent as follows:
---------------------------------------------------------------------------

    \182\ 65 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 \183\. 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:
---------------------------------------------------------------------------

    \183\ 59 FR 30984 (june 16, 1994).

------------------------------------------------------------------------
                                                            Number 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 
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

[[Page 46325]]

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.\184\ 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.
---------------------------------------------------------------------------

    \184\ 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.\185\ 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.
---------------------------------------------------------------------------

    \185\ 47 CFR 73.313.
---------------------------------------------------------------------------

Attachment I

Parties Filing Comments on the Notice of Proposed Rulemaking

Steven Karty
William J. Hanrahan
AT&T Corporation (``AT&T'')
American Association of Paging Carriers (``AAPC'')
Blooston, Mordkofsky, Dickens, Duffy & Prendergast (``BMDDP'')
Allied Personal Communications Industries Association of California 
(``Allied'')

Parties Filing Reply Comments

Verizon, Inc. (``Verizon'')
American Mobile Telecommunications Association, Inc. (``AMTA'')

Parties Filing a Notice of Oral Ex Parte Presentation

Arch Wireless, Inc. (``Arch'')
Filed by Wilkinson, Barker, Knauer, LLP

    Other Entities Present at the Meeting:

American Association of Paging Carriers (``AAPC'')
Law Firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast 
(``BMDDP'')
Arch Wireless, Inc. (``Arch'')

Attachment J--AM and FM Radio Regulatory Fees

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

Statement of Commissioner Michael Copps, Concurring

Re: Assessment and Collection of Regulatory Fees for Fiscal Year 2002
    I am concerned that the Commission does not address when or how it 
would adjust the regulatory fees to take into account changes to the 
cost of regulating various services. The paging industry argues that it 
faces a 60 percent per unit increase in regulatory fees this year due 
to a declining subscriber base, notwithstanding reduced regulatory 
resources devoted to paging. Today's order concludes that the paging 
industry has not demonstrated that an increase from $.05 to $.08 per 
unit per year would harm the industry as a whole, but fails to address 
the underlying concern about revisions to the Commission's methodology. 
I take some comfort, however, that the Commission plans to have in 
place a new accounting system in the near future, and that, in the 
meantime, our rules expressly provide that individual providers may 
seek reduction or deferral of regulatory fees due to financial 
hardship.

[FR Doc. 02-17308 Filed 7-11-02; 8:45 am]
BILLING CODE 6712-02-P