[Federal Register Volume 68, Number 69 (Thursday, April 10, 2003)]
[Proposed Rules]
[Pages 17577-17592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-8574]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 03-83; FCC 03-64]


Assessment and Collection of Regulatory Fees for Fiscal Year 2003

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is proposing to revise its Schedule of 
Regulatory Fees in order to recover the amount of regulatory fees that 
Congress has required it to collect for fiscal year 2003. Section 9 of 
the Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees under sections 9(b)(2) and 
(b)(3), respectively, for annual ``Mandatory Adjustments'' and 
``Permitted Amendments'' to the Schedule of Regulatory Fees.

DATES: Comments are due on or before April 25, 2003, and reply comments 
are due on or before May 5, 2003.

FOR FURTHER INFORMATION CONTACT: Roland Helvajian, Office of Managing 
Director at (202) 418-0444 or Rob Fream, Office of Managing Director at 
(202) 418-0408.

SUPPLEMENTARY INFORMATION:
Adopted: March 24, 2003.
Released: March 26, 2003.

    By the Commission:

Table of Contents

I. Introduction
II. Discussion
    A. Development of FY 2003 Fees
    i. Calculation of Revenue Requirements
    ii. Further Adjustments to Payment Units
    iii. Request for Comment on Possible Service Reclassification
    iv. Adjustment of Fee Waiver Policies
    v. Procedural Changes
    vi. Future Streamlining of the Regulatory Fee Assessment and 
Collection Process
    B. Procedures for Payment of Regulatory Fees
    i. De minimis Fee Payment Liability
    ii. Standard Fee Calculations and Payment Dates
    C. Enforcement
III. Procedural Matters
    A. Comment Period and Procedures
    B. Ex Parte Rules
    C. Initial Regulatory Flexibility Analysis
    D. Authority and Further Information
Attachment A--Initial Regulatory Flexibility Analysis
Attachment B--Sources of Payment Unit Estimates for FY 2003
Attachment C--Calculation of Revenue Requirements and Pro-Rata Fees
Attachment D--FY 2003 Schedule of Regulatory Fees
Attachment E--Factors, Measurements, and Calculations that Determine 
Station Contours and Population Coverages

I. Introduction

    1. In this Notice of Proposed Rulemaking, the Commission proposes 
to collect $269,000,000 in regulatory fees for Fiscal Year (FY) 2003. 
These fees are mandated by Congress and are collected to recover the 
regulatory costs associated with the Commission's enforcement, policy 
and rulemaking, user information, and international activities.\1\
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    \1\ 47 U.S.C. 159(a).
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II. Discussion

A. Development of FY 2003 Fees

i. Calculation of Revenue and Fee Requirements
    2. Each fiscal year, the Commission proportionally allocates the 
total amount that must be collected via regulatory fees (Attachment 
C).\2\ For FY 2003, this allocation was done using FY 2002 revenues as 
a base. From this base, a revenue amount for each fee category was 
calculated. Each fee category was then adjusted upward by 23 percent to 
reflect the increase in regulatory fees from FY 2002 to FY 2003. These 
FY 2003 amounts were then divided by the number of payment units in 
each fee category to determine the unit fee.\3\ In

[[Page 17578]]

instances of small fees, such as licenses that are renewed over a 
multiyear term, the resulting unit fee was also divided by the term of 
the license. These unit fees were then rounded in accordance with 47 
U.S.C. 159(b)(2).
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    \2\ The costs assigned to each service category are based upon 
the regulatory activities (enforcement, policy and rulemaking, user 
information, and international activities) undertaken by the 
Commission on behalf of units in each service category. It is 
important to note that the required increase in regulatory fee 
payments of approximately 23 percent in FY 2003 is reflected in the 
revenue that is expected to be collected from each service category. 
Because this expected revenue is adjusted each year by the number of 
units in a service category, the actual fee itself is sometimes 
increased by a number other than 23 percent. For example, in 
industries where the number of units is declining and the expected 
revenue is increasing, the impact on the fee increase may be 
greater.
    \3\ In most instances, the fee amount is a flat fee per licensee 
or regulatee. However, in some instances the fee amount represents a 
unit subscriber fee (such as for Cable, Commercial Mobile Radio 
Service (CMRS) Cellular/Mobile and CMRS Messaging), a per unit fee 
(such as for International Bearer Circuits), or a fee factor per 
revenue dollar (Interstate Telecommunications Service Provider fee).
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    ii. Additional Adjustments to Payment Units
    3. In calculating the FY 2003 regulatory fees proposed in 
Attachment D, the Commission further adjusted the FY 2002 list of 
payment units (Attachment B) based upon licensee data bases and 
industry and trade group projections. Whenever possible, the Commission 
verified these estimates from multiple sources to ensure accuracy of 
these estimates.
    4. The NPRM also proposes adjusting payment units for FY 2003 by 
expanding the AM and FM Radio Station Regulatory Fees Grid. Since FY 
1998, the Commission has used a grid that divides broadcast station 
regulatory fees by class of service, population, and type of service 
(AM/FM).\4\ This grid was originally adopted to provide equity and 
fairness among radio stations with varying signal strengths and market 
reach. However, in recent years, modifications to radio stations, a 
trend toward more powerful stations, and increases in the overall 
general population--resulting in an ever-larger number of stations 
grouped together in the one million-plus category of the grid--
necessitated the need to review this grid.
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    \4\ Assessment and Collection of Regulatory Fees for Fiscal Year 
1998 (63 FR 35847), paragraph 37, (July 1, 1998).
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    5. The NPRM is therefore proposing a revised grid (six by seven) 
that includes a population category of ``greater than three million 
people.'' In addition, the NPRM is also proposing to change the 
population threshold amounts to reflect a slightly wider population 
field. The current and proposed radio station grids follow:

                                                        Current Radio Station Regulatory Fee Grid
                                                                      [Six by Six]
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                                                                                                               FM classes A, B1 &    FM classes B, C, C1
  Population served        AM class A            AM class B            AM class C            AM class D                C3                   & C2
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<=20,000
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20,001-50,000
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50.001-125,000
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125,001-400,000
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400,001-1,000,000
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1,000,000
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                                                       Proposed Radio Station Regulatory Fee Grid
                                                                     [Six by Seven]
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                                                                                                               FM classes A, B1 &    FM classes B, C, C1
  Population served         AM class A           AM class B            AM class C            AM class D                C3                   & C2
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<=25,000
---------------------
25,001-75,000
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75,001-150,000
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150,001-500,000
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500,001-1,200,000
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1,200,001-3,000,000
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3,000,000
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iii. Request for Comment on Possible Service Reclassification
    6. In both 2001,\5\ and then again in 2002,\6\ the Commission 
denied requests to move the Local Multipoint Distribution Service 
(LMDS) to a microwave fee category. Thus, at present, LMDS services' 
regulatory fees are assessed based upon the Multipoint Distribution 
Service (MDS) category. However, while evaluating these requests it has 
become clear that product innovation, evolving service offerings, and 
further technological developments may be creating changes in these 
services such that reclassification--of some sort--might be 
appropriate. MDS and LMDS are licensed in different spectrum bands.\7\

[[Page 17579]]

MDS is located below 3 GHz while LMDS is in the higher microwave 
frequencies. Accordingly, we request comment on how LMDS should be 
categorized for regulatory fee purposes. We note that in a separate 
proceeding, we have sought comment on possible long-term modification 
of our regulatory fees for MDS in conjunction with proposed major 
changes to our MDS rules to facilitate use of the 2500-2690 MHz band 
for mobile and advanced services.\8\
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    \5\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2001, Report and Order, 16 FCC Rcd 13525, 13532 (2001).
    \6\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2001, Memorandum Opinion and Order, MD Dkt. No. 01-76, FCC 02-
320, paragraphs 1, 6 (rel. Dec. 4, 2002).
    \7\ The majority of MDS operations is located in the 190 
megahertz in the 2500-2690 MHz band. FCC Staff Releases Its Interim 
Report on Spectrum Study of the 2500-2690 MHz Band: The Potential 
for Accommodating Third Generation Mobile Systems, Public Notice, DA 
00-2583, 5 FCC Rcd 22310 (2000). A large deployment of LMDS has 
occurred in the frequencies at 17.7-20.2 GHz and 27.5-30 GHz (28 GHz 
band). See Biennial Review 2000 Staff Report Released, Public 
Notice, FCC 00-346 (Sept. 19, 2000).
    \8\ See Amendment of Parts 1, 21, 73, 74 and 101 of the 
Commission's Rules to Facilitate the Provision of Fixed and Mobile 
Broadband Access, Educational and Other Advanced Services in the 
2150-2162 and 2500-2690 MHz Bands; Part 1 of the Commission's 
Rules--Further Competitive Bidding Procedures; Amendment of parts 21 
and 74 to Enable Multipoint Distribution Service and the 
Instructional Television Fixed Service Amendment of parts 21 and 74 
to Engage in Fixed Two-Way Transmissions; Amendment of parts 21 and 
74 of the Commission's Rules With Regard to Licensing in the 
Multipoint Distribution Service and in the Instructional Television 
Fixed Service for the Gulf of Mexico; WT Docket Nos. 02-68; 03-66; 
03-67; MM Docket No. 97-217; Notice of Proposed Rulemaking and 
Memorandum Opinion and Order, FCC 03-56 (released April 2, 2003).
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    7. Those who argue for such a reclassification of LMDS for 
regulatory fee purposes have pointed out other differences between MDS 
and LMDS, such as individually licensed station hub sites (MDS) versus 
geographically based licenses (LMDS), differing markets, and different 
financial/investment requirements. Proponents of moving LMDS to another 
category also note the differences in the spectrum propagation 
characteristics of MDS and LMDS--with LMDS having more propagation 
limitations.
    8. Those opposing such a re-classification of LMDS for regulatory 
fee purposes note that there are many similarities between the services 
of LMDS and MDS, including that they both provide high speed voice and 
data services. They also point out that past arguments for making a 
change have only come forward after the Commission has issued its final 
annual fee assessments.
    9. The Commission's denial of the past requests to move LMDS to a 
microwave fee category--or any other category--has not been based on 
rejection or acceptance of either set of arguments, but simply the fact 
that insufficient evidence has been provided. Thus, the NPRM asks for 
public comment on how LMDS should be categorized for regulatory fee 
purposes, including whether an entirely new fee category should be 
established just for LMDS, in order to build a complete record on 
whether LMDS is properly classified within its current fee category of 
``Multipoint Distribution.'' \9\ We also seek comment on whether LMDS 
should be classified in the same manner as other point-to-point fixed 
microwave services, or on the basis of other geographically licensed 
services.
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    \9\ Effective March 25, 2002, the Commission transferred 
regulatory functions for Instructional Fixed Service, Multipoint 
Distribution Service, and the Multichannel Multipoint Distribution 
Service, from the Mass Media Bureau to the Wireless 
Telecommunications Bureau (See 47 CFR section 1.1153). The 
Commission intends to modify its rules on annual regulatory fees to 
reflect the fact that these services are now regulated by the 
Wireless Telecommunications Bureau.
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iv. Adjustment of Fee Waiver Policies
    10. Section 9 of the Communications Act (47 U.S.C. 159) requires 
the Commission to assess and collect regulatory fees to cover the costs 
of certain regulatory activities. The statute also specifies when these 
fees may be waived.\10\ Additionally, Section 8 of the Communications 
Act (47 U.S.C. 158) requires the Commission to collect application fees 
to reimburse the United States for amounts appropriated to the 
Commission (see 47 U.S.C. 158(e)). These fees may also be waived.\11\ 
The Commission clarified the general policies applicable to waivers, 
including those based on financial hardship, in Implementation of 
Section 9 of the Communications Act\12\, that ``We will grant waivers 
of the fees on a sufficient showing of financial hardship.'' \13\ We 
further stated that: ``It will be incumbent upon each regulatee to 
fully document its financial position and show that it lacks sufficient 
funds to pay the regulatory fees and to maintain its service to the 
public.'' \14\ Additionally, we explained that ``Evidence of bankruptcy 
or receivership is sufficient to establish financial hardship * * *. 
Thus, we will waive the regulatory fees for licensees whose stations 
are bankrupt, undergoing Chapter 11 reorganizations or in 
receivership.'' \15,16\
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    \10\ Section 9(d) (47 U.S.C. 159(d)) provides that: ``The 
Commission may waive, reduce, or defer payment of a fee in any 
specific instance for good cause shown, where such action would 
promote the public interest.'' See also 47 CFR section 1.1166 
(implementing statutory provision).
    \11\ Section 8(d)(2) (47 U.S.C. 158(d)(2)) provides that: ``The 
Commission may waive or defer [payment of an application fee] in any 
specific instance for good cause shown, where such action would 
promote the public interest.'' See also 47 CFR section 1.1117 
(implementing statutory provision).
    \12\ We held generally that we would waive regulatory fees on a 
case-by-case basis upon a demonstration of: `` `extraordinary and 
compelling circumstances' outweighing the public interest in 
recouping the cost of the Commission's regulatory services from a 
particular regulatee.'' 9 FCC Rcd at 5344, paragraph 29. See also 9 
FCC Rcd 5333 (1994), recon. granted, 10 FCC Rcd 12759 (1995)
    \13\ 10 FCC Rcd at 12761, paragraph 13.
    \14\ Id. at 12762, paragraph 13.
    \15\ Id. at 12762, paragraph 14.
    \16\ See also Mobilemedia Corp., 14 FCC Rcd 8017, 8027 paragraph 
40 (1999) (applying this policy to Section 8 application fees).
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    11. Although fee waivers will generally be given in cases of 
financial hardship, we nevertheless note that even under our current 
policies, in some circumstances a significant question may exist as to 
whether bankruptcy represents extraordinary and compelling 
circumstances justifying a waiver when balanced against the public 
interest in reimbursing the Commission for its costs as reflected in 
the statutory fee provisions. A policy of automatically granting a 
waiver, in the case of large entities owing millions of dollars in 
fees, for example, might have significant impact on the Commission's 
overall ability to collect fees to reimburse the government for its 
costs as required by law. Therefore, under such circumstances a waiver 
may well not promote the public interest, as provided in sections 
8(d)(2) and 9(d). We therefore emphasize that under the statutory 
waiver provisions, case-by-case review of fee waiver requests is 
necessary to determine the public interest, even in bankruptcy cases.
    12. We also seek comment on whether we should set a cap on the 
amount of fees that we will generally waive in circumstances involving 
bankruptcy or otherwise. Fees owed above this cap would, of course, be 
subject to the provisions of the Bankruptcy Act (11 U.S.C. 101 et seq.) 
and the disposition of the relevant bankruptcy court. By leaving the 
ultimate disposition of these large fees to bankruptcy law, rather than 
waiving them, we believe that we would be giving appropriate weight to 
our congressionally-mandated obligation to collect regulatory and other 
fees. Moreover, we believe that we would also be giving due regard to 
our practice, approved by the courts, of reconciling our regulatory 
responsibilities with the goals of the Bankruptcy Act.\17\ In the case 
of regulatees alleging financial hardship but not in bankruptcy, we 
would consider waiver, partial waiver or deferral of fees above the cap 
on a case-by-case basis. We tentatively propose that the cap be set at 
either $500,000 or $1 million, reviewed annually. In computing the 
proposed cap, all of the subsidiaries and other
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    \17\ See LaRose v. FCC, 494 F.2d 1145 (D.C. Cir. 1974).

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[[Page 17580]]

entities with an attributable interest in a particular regulatee would 
be aggregated. We invite comment on the above proposal and on 
alternative proposals. Commenters should address whether numerical or 
other caps should be applied to the waiver of Section 8 or Section 9 
fees, the appropriate level at which the cap should be set, and how the 
level of a cap might be adjusted over time.
v. Procedural Changes
    13. In an effort to streamline the regulatory fee process, the 
Commission is undertaking several initiatives that will make the 
process of collecting fees more efficient. Historically, in addition to 
providing official notice of regulatory fee assessments in the Federal 
Register, the Commission mails tens of thousands of public notices to 
licensees and regulatees, informing them of when regulatory fees are 
due and providing them the information necessary for them to calculate 
the amount they owe. This mailing process is very costly and 
inefficient. Because of the wide availability of the Internet, the 
Commission is proposing to discontinue mailing public notices. Instead, 
these notices, and all other pertinent information, will be posted on 
the FCC's Web site (http://www.fcc.gov/fees). Hard copies of public 
notices and other relevant materials will be mailed upon request. 
Official notice of regulatory fee assessments will continue to be 
published in the Federal Register.
    14. Further, the Commission is also undertaking a pilot program to 
mail postcards specifically stating the amount owed (i.e., to send a 
``bill'' on a postcard) to a select group of media services.\18\ The 
postcards will identify the station call sign, address, facility 
identification number or other identifier, and amount owed. The 
regulatee will then have the opportunity to correct any mistakes or, if 
there are no mistakes, simply submit the amount owed instead of having 
to calculate the unit's fee based upon information found in Public 
Notices. If successful, the Commission will consider expanding this 
method to other service categories.
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    \18\ AM and FM Radio Stations, AM and FM Construction Permits, 
FM Translators/Boosters, VHF and UHF Television Stations, VHF and 
UHF Television Construction Permits, Satellite Television Stations, 
Satellite Television Construction Permits, Low Power Television 
(LPTV) Stations, and LPTV Translators/Boosters.
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    15. With the exception of the changes noted in the preceding 
sections, the FY 2003 regulatory fee collection will follow the 
policies or procedures found in the FY 2002 Order (67 FR 46297).
vi. Future Streamlining of the Regulatory Fee Assessment and Collection 
Process
    16. We are beginning a multi-year effort to review, streamline and 
modernize our fee assessment and collection processes and procedures. 
We welcome comments on a broad range of options in this regard. Areas 
of particular interest include: (1) The process for notifying users 
about changes in the annual regulatory fee schedule and how it can be 
improved; (2) the most effective way to disseminate regulatory fee 
bills, i.e. through surface mail, email, or some other mechanism; (3) 
the fee payment process, including how the agency's electronic payment 
system can be improved and whether we should make electronic payment 
mandatory for fees over a certain level; and (4) the timing of fee 
payments, including whether we should alter the existing fee payment 
``window'' in any way. Commenters should bear in mind that proposed 
improvements must comport with the provisions of Section 9 of the 
Communications Act of 1934, as amended (47 U.S.C. 159). We anticipate 
taking action to implement improvements after the current regulatory 
fee cycle.

B. Procedures for Payment of Regulatory Fees

i. De minimis Fee Payment Liability
    17. As in the past, the Commission is proposing that regulatees 
whose total regulatory fee liability, including all categories of fees 
for which payment is due by an entity, amounts to less than $10 will be 
exempted from fee payment in FY 2003.
ii. Standard Fee Calculations and Payment Dates
    18. The time for payment of standard fees will be announced in the 
Report and Order terminating this proceeding and will be published in 
the Federal Register pursuant to authority delegated to the Managing 
Director. As in the past, the responsibility for payment of fees by 
service category is as follows:
    (a) Media services--the responsibility for the payment of 
regulatory fees rests with the holder of the permit or license on 
October 1, 2002. However, in instances where a license or permit is 
transferred or assigned after October 1, 2002, responsibility for 
payment rests with the holder of the license or permit at the time 
payment is due.
    (b) Wireline (Common Carrier) and Cable Services (fees are not 
based on a subscriber, unit, or circuit count)--fees must be paid for 
any authorization issued on or before October 1, 2002.
    (c) Cable Subscriber Services and Commercial Mobile Radio Service 
(CMRS) cellular, mobile, and messaging services (fees based upon a 
subscriber, unit or circuit count)--the number of subscribers, units or 
circuits on December 31, 2002 will be used as the basis from which to 
calculate the fee payment.\19\ For facilities-based common carriers 
with active international bearer circuits, the fee is based on the 
circuit count as of December 31, 2002.
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    \19\ Cable system operators are to compute their subscribers as 
follows: Number of single family dwellings + number of individual 
households in multiple dwelling unit (apartments, condominiums, 
mobile home parks, etc.) paying at the basic subscriber rate + bulk 
rate customers + courtesy and free service. Note: Bulk-Rate 
Customers = Total annual bulk-rate charge divided by basic annual 
subscription rate for individual households. Cable system operators 
may base their count on ``a typical day in the last full week'' of 
December 2002, rather than on a count as of December 31, 2002.
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    19. The Commission strongly 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. 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.

C. Enforcement

    20. 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 also assesses administrative processing charges on 
delinquent debts to recover additional costs incurred in 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 underpayments 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

[[Page 17581]]

submitted after the filing window. Failure to pay regulatory fees can 
result in the initiation of a proceeding to revoke any and all 
authorizations held by the delinquent payer. \20\
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    \20\ See 47 CFR 1.1164.
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III. Procedural Matters

A. Comment Period and Procedures

    21. Pursuant to 47 CFR section 1.415, 1.419, interested parties may 
file comments on or before April 25, 2003, and reply comments on or 
before May 5, 2003. Comments may be filed using the Commission's 
Electronic Comment Filing System (ECFS) or by filing paper copies.\21\
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    \21\ Electronic Filing of Documents in Rulemaking Proceedings, 
63 FR 24121 (May 1, 1998).
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    22. Comments filed through the ECFS are sent as an electronic file 
via the Internet to http://www.fcc.gov/e-file/ecfs.html. Only one copy 
of an electronic submission must be filed. In completing the 
transmittal screen, commenters should include their full name, mailing 
address, and the applicable docket or rulemaking number. Parties may 
also submit an electronic comment by e-mail. To receive filing 
instructions for e-mail comments, commenters should send an e-mail to 
[email protected], and should include the following words in the body of the 
message, ``get form '' A sample form 
and directions will be sent in reply.
    23. Parties who choose to file by paper must file an original and 
four copies of each filing. Filings can be hand delivered, sent by 
commercial overnight courier, or mailed through the U.S. Postal Service 
(please note that the Commission continues to experience delays in 
receiving U.S. Postal Service mail). The Commission's contractor, 
Vistronix, Inc., will receive hand-delivered paper filings at 236 
Massachusetts Avenue, NE., Suite 110, Washington DC 20002. The filing 
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be 
held together with rubber bands or fasteners. Any envelopes must be 
disposed of before entering the building. Commercial overnight mail 
(other than U.S. Postal Service Express Mail and Priority Mail) must be 
sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. U.S. Postal 
Service first-class mail, Express Mail, and Priority Mail should be 
addressed to 445 12th Street, SW., Washington, DC 20554. All filings 
must be addressed to the Commission's Secretary, Marlene Dortch, Office 
of the Secretary, Federal Communications Commission.
    24. Parties who choose to file by paper must also submit their 
comments on diskette. Two copies of the diskettes must be submitted. 
One copy is to be sent to Qualex International, 445 12th Street, SW., 
Room CY-B402, Washington, DC 20554. The other copy is to be sent to 
Office of Managing Director, Federal Communications Commission, 445 
12th Street, SW., 1-C848, Washington, DC 20554. These submissions must 
be in a Microsoft Windows TM-compatible format on a 3.5'' 
floppy diskette. The diskette should be clearly labeled with the 
commenter's name, proceeding (including the lead docket number MD 
Docket No. 03-83), type of pleading (comment or reply comment), date of 
submission, and the name of the electronic file on the diskette. The 
label should also include the following phrase ``Copy--Not an 
Original.'' Each diskette should contain only one party's pleadings, 
preferably in a single electronic file.
    25. The public may view the documents filed in this proceeding 
during regular business hours in the FCC Reference Center, Federal 
Communications Commission, Room CY-A257, 445 12th Street, SW., 
Washington, DC 20554, and through the Commission's Electronic Comment 
Filing System (ECFS) http://www.gullfoss2.fcc.gov/prod/ecfs/comsrch_v2.cgi. Those seeking materials in alternative formats (computer 
diskette, large print, audio recording, and Braille) should contact 
Brian Millin at (202) 418-7426 voice, (202) 418-7365 TTY, or 
[email protected].

B. Ex Parte Rules

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

    27. As required by the Regulatory Flexibility Act,\23\ the 
Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the possible impact on small entities of the proposals 
suggested in this document. The IRFA is set forth as Attachment A. 
Written public comments are requested with respect to the IRFA. These 
comments must be filed in accordance with the same filing deadlines for 
comments on the rest of the NPRM, and must have a separate and distinct 
heading, designating the comments as responses to the IRFA. The 
Consumer Information Bureau, Reference Information Center, shall send a 
copy of this NPRM, including the IRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration, in accordance with the 
Regulatory Flexibility Act.
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    \23\ See 5 U.S.C. 603.
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D. Authority and Further Information

    28. 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. It 
is ordered that this NPRM is adopted.\24\ It is further ordered that 
the Commission's Consumer Information Bureau, Reference Information 
Center, shall send a copy of this NPRM, including the Initial 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the Small Business Administration.
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    \24\ 47 U.S.C. 154(i)-(j), 159, & 303(r).
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    29. Further information about this proceeding may be obtained by 
contacting the Fees Hotline at (888) 225-5322.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Attachment A

Initial Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\25\ the 
Commission has prepared this Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities 
by the policies and rules in the present Notice of Proposed 
Rulemaking, In the Matter of Assessment and Collection of Regulatory 
Fees for Fiscal Year 2003. Written public comments are requested on 
this IRFA. Comments must be identified as responses to the IRFA and 
must be filed by the deadlines for comments on the IRFA provided in 
paragraph 20. The Commission will send a copy of the NPRM, including 
the IRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration.\26\ In addition, the NPRM and IRFA (or summaries 
thereof) will be published in the Federal Register.\27\
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    \25\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601 et. seq., has been 
amended by the Contract With America Advancement Act of 1996, Public 
Law 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is 
the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA).
    \26\ 5 U.S.C. 603(a).
    \27\ Id.
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I. Need for, and Objectives of, the Proposed Rules

    2. This rulemaking proceeding is initiated to obtain comments 
concerning the Commission's proposed amendment of its Schedule of 
Regulatory Fees in the amount of $269,000,000, the amount that 
Congress has required the Commission to recover. The Commission 
seeks to collect the necessary amount through its proposed Schedule 
of Regulatory Fees in the most efficient manner possible and without 
undue public burden.

[[Page 17582]]

II. Legal Basis

    3. This action, including publication of proposed rules, is 
authorized under sections (4)(i) and (j), 9, and 303(r) of the 
Communications Act of 1934, as amended.\28\
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    \28\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
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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.\29\ The RFA defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' \30\ In addition, the term ``small business'' has 
the same meaning as the term ``small business concern'' under the 
Small Business Act.\31\ 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).\32\ A small 
organization is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
\33\ Nationwide, as of 1992, there were approximately 275,801 small 
organizations.\34\ ``Small governmental jurisdiction'' \35\ 
generally means ``governments of cities, counties, towns, townships, 
villages, school districts, or special districts, with a population 
of less than 50,000.'' \36\ As of 1992, there were approximately 
85,006 governmental entities in the United States.\37\ This number 
includes 38,978 counties, cities, and towns; of these, 37,566, or 
96%, have populations of fewer than 50,000.\38\ 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.
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    \29\ 5 U.S.C. 603(b)(3).
    \30\ 5 U.S.C. 601(6).
    \31\ 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).
    \32\ Small Business Act, 15 U.S.C. 632 (1996).
    \33\ 5 U.S.C. 601(4).
    \34\ 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).
    \35\ 47 CFR 1.1162.
    \36\ 5 U.S.C. 601(5).
    \37\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census 
of Governments.''
    \38\ Id.
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Cable Services or Systems

    5. The SBA has developed a definition of small entities for 
cable and other pay television services, which includes all such 
companies generating $11 million or less in revenue annually.\39\ 
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.\40\
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    \39\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) codes 51321 and 51322.
    \40\ 1992 Economic Census Industry and Enterprise Receipts Size 
Report, Table 2D, NAICS codes 51321 and 51322 (U.S. Bureau of the 
Census data under contract to the Office of Advocacy of the U.S. 
Small Business Administration).
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    6. The Commission has developed its own definition of a small 
cable system operator for purposes of rate regulation. Under the 
Commission's rules, a ``small cable company'' is one serving fewer 
than 400,000 subscribers nationwide.\41\ 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.\42\ 
Since then, some of those companies may have grown to serve over 
400,000 subscribers, and others may have been involved in 
transactions that caused them to be combined with other cable 
operators. Consequently, we estimate that there are fewer than 1,439 
small entity cable system operators.
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    \41\ 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).
    \42\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 
1996 (based on figures for Dec. 30, 1995).
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    7. The Communications Act 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.'' \43\ The 
Commission has determined that there are 67,500,000 subscribers in 
the United States.\44\ Therefore, we estimate that an operator 
serving fewer than 675,000 subscribers shall be deemed a small 
operator, if its annual revenues, when combined with the total 
annual revenues of all of its affiliates, do not exceed $250 million 
in the aggregate.\45\ Based on available data, we estimate that the 
number of cable operators serving 675,000 subscribers or less totals 
1,450.\46\ We do not request nor collect information on whether 
cable system operators are affiliated with entities whose gross 
annual revenues exceed $250,000,000,\47\ and therefore are unable at 
this time to estimate more accurately the number of cable system 
operators that would qualify as small cable operators under the 
definition in the Communications Act.
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    \43\ 47 U.S.C. 543(m)(2).
    \44\ Media Services (Cable Division) estimate.
    \45\ Id. 47 CFR 76.1403(b).
    \46\ FCC Announces New Subscriber Count for the Definition of 
Small Cable Operator, Public Notice, DA-01-0158 (released January 
24, 2001).
    \47\ We do receive such information on a case-by-case basis only 
if a cable operator appeals a local franchise authority's finding 
that the operator does not qualify as a small cable operator 
pursuant to Sec.  76.1403(b) of the Commission's rules. See 47 CFR 
76.1403(d).
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    8. Other Pay Services. Other pay television services are also 
classified under 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),\48\ multipoint distribution systems 
(MDS),\49\ satellite master antenna systems (SMATV), and 
subscription television services.
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    \48\ Direct Broadcast Services (DBS) are discussed with the 
international services, infra.
    \49\ Multipoint Distribution Services (MDS) are discussed with 
the mass media services, infra.
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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.\50\ According to data in the most recent report, there 
are 5,679 interstate service providers.\51\ 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.
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    \50\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Telecommunications Provider Locator, Table 1 (November 2001).
    \51\ FCC, Telecommunications Provider Locator at Table 1.
---------------------------------------------------------------------------

    10. We have included small incumbent local exchange carriers 
(LECs) \52\ 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.'' \53\ 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.\54\ We

[[Page 17583]]

have therefore included small incumbent LECs in this IRFA analysis, 
although we emphasize that this IRFA action has no effect on 
Commission analyses and determinations in other, non-RFA contexts.
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    \52\ See 47 U.S.C 251(h) (defining ``incumbent local exchange 
carrier'').
    \53\ 5 U.S.C. 601(3).
    \54\ Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small 
Business Act contains a definition of ``small business concern,'' 
which the RFA incorporates into its own definition of ``small 
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 
601(3) (RFA). SBA regulations interpret ``small business concern'' 
to include the concept of dominance on a national basis. 13 CFR 
121.102(b). Since 1996, out of an abundance of caution, the 
Commission has included small incumbent LECs in its regulatory 
flexibility analyses. See, e.g., Implementation of the Local 
Competition Provisions of the Telecommunications Act of 1996, CC 
Docket, 96-98, First Report and Order, 11 FCC Rcd 15499, 16144-45 
(1996), 61 FR 45476 (Aug. 29, 1996).
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    11. Total Number of Telephone Companies Affected. The 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.\55\ 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.'' \56\ 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.
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    \55\ 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).
    \56\ See generally 15 U.S.C. 632(a)(1).
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    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.\57\ 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.\58\ 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.
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    \57\ 1992 Census, supra, at Firm Size 1-123.
    \58\ 13 CFR 121.201, NAICS codes 51331, 51333, and 51334.
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    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.\59\ 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.\60\ 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.\61\ 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.
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    \59\ 13 CFR 121.201, NAICS codes 51331, 51333, and 51334.
    \60\ See Telecommunications Provider Locator at Table 1.
    \61\ Telecommunications Provider Locator at Table 1. The total 
for resellers includes both toll resellers and local resellers.
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International Services

    14. The Commission has not developed a definition of small 
entities applicable to licensees in the international services. 
Therefore, the applicable definition of small entity is generally 
the definition under the SBA rules applicable to Communications 
Services, Not Elsewhere Classified (NEC).\62\ This definition 
provides that a small entity is expressed as one with $11.0 million 
or less in annual receipts.\63\ 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.\64\ The Census report does not provide more 
precise data.
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    \62\ An exception is the Direct Broadcast Satellite (DBS) 
Service, infra.
    \63\ 13 CFR 121.201, NAICS codes 48531, 513322, 51334, and 
51339.
    \64\ 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 75 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 
seven 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

[[Page 17584]]

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.'' \65\ This 
definition provides that a small entity is one with $11.0 million or 
less in annual receipts.\66\ Currently, there are nine DBS 
authorizations, though there are only two DBS companies in operation 
at this time. We do not request nor collect annual revenue 
information for DBS services, and are unable to determine the number 
of DBS operators that would constitute a small business under the 
SBA definition.
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    \65\ 13 CFR 121.201, NAICS codes 51321 and 51322.
    \66\ Id.
---------------------------------------------------------------------------

Media Services

    25. Commercial Radio and Television Services. The proposed rules 
and policies will apply to television broadcasting licensees and 
radio broadcasting licensees.\67\ The SBA defines a television 
broadcasting station that has $10.5 million or less in annual 
receipts as a small business.\68\ Television broadcasting stations 
consist of establishments primarily engaged in broadcasting visual 
programs by television to the public, except cable and other pay 
television services.\69\ Included in this industry are commercial, 
religious, educational, and other television stations.\70\ Also 
included are establishments primarily engaged in television 
broadcasting and which produce taped television program 
materials.\71\ Separate establishments primarily engaged in 
producing taped television program materials are classified under 
another NAICS number.\72\ There were 1,509 television stations 
operating in the nation in 1992.\73\ That number has remained fairly 
constant as indicated by the approximately 1,714 operating 
television broadcasting stations in the nation as of September 30, 
2002.\74\ For 1992,\75\ the number of television stations that 
produced less than $10.0 million in revenue was 1,155 
establishments.\76\ Only commercial stations are subject to 
regulatory fees.
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    \67\ 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).
    \68\ 13 CFR 121.201, NAICS code 51312.
    \69\ 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).
    \70\ 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.
    \71\ 1992 Census, Series UC92-S-1, at Appendix A-9.
    \72\ 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).
    \73\ FCC News Release No. 31327 (January 13, 1993); 1992 Census, 
Series UC92-S-1, at Appendix A-9.
    \74\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2002.''
    \75\ 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.
    \76\ 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.
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    26. Additionally, the SBA defines a radio broadcasting station 
that has $5 million or less in annual receipts as a small 
business.\77\ A radio broadcasting station is an establishment 
primarily engaged in broadcasting aural programs by radio to the 
public.\78\ Included in this industry are commercial, religious, 
educational, and other radio stations.\79\ Radio broadcasting 
stations, which primarily are engaged in radio broadcasting and 
which produce radio program materials, are similarly included.\80\ 
However, radio stations which are separate establishments and are 
primarily engaged in producing radio program material are classified 
under another NAICS number.\81\ 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.\82\ Official Commission 
records indicate that a total of 11,334 individual radio stations 
were operating in 1992.\83\ As of September 30, 2002, Commission 
records indicate that a total of 13,296 radio stations were 
operating, of which 8,492 were FM stations.\84\ Only commercial 
stations are subject to regulatory fees.
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    \77\ 13 CFR 121.201, NAICS codes 513111 and 513112.
    \78\ 1992 Census, Series UC92-S-1, at Appendix A-9.
    \79\ Id.
    \80\ Id.
    \81\ Id.
    \82\ 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.
    \83\ FCC News Release, No. 31327 (Jan. 13, 1993).
    \84\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2002.''
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    27. The rules may affect an estimated total of 1,714 television 
stations, approximately 1,320 of which are considered small 
businesses.\85\ The revised rules will also affect an estimated 
total of 13,296 radio stations, approximately 12,764 of which are 
small businesses.\86\ 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 2,127 low power 
television stations (LPTV).\87\ Given the nature of this service, we 
will presume that all LPTV licensees qualify as small entities under 
the SBA definition.
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    \85\ We use an estimated figure of 77 percent (from 1992) of TV 
stations operating at less than $10 million and apply it to the 2003 
total of 1,714 TV stations to arrive at 1,320 stations categorized 
as small businesses.
    \86\ We use the 96% figure of radio station establishments with 
less than $5 million revenue from data presented in the year 2003 
estimate (FCC News Release, September 30, 2002) and apply it to the 
13,296 individual station count to arrive at 12,764 individual 
stations as small businesses.
    \87\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2002.''
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    28. Auxiliary, Special Broadcast and Other Program Distribution 
Services. This service involves a variety of transmitters, generally 
used to relay broadcast programming to the public (through 
translator and booster stations) or within the program distribution 
chain (from a remote news gathering unit back to the station). The 
Commission has not developed a definition of small entities 
applicable to broadcast auxiliary licensees. The applicable 
definitions of small entities are those, noted previously, under the 
SBA rules applicable to radio broadcasting stations and television 
broadcasting stations.\88\
---------------------------------------------------------------------------

    \88\ 13 CFR 121.201, NAICS codes 513111 and 513112.
---------------------------------------------------------------------------

    29. The Commission estimates that there are approximately 3,790 
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 ($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. \89\
---------------------------------------------------------------------------

    \89\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    30. Multipoint Distribution Service (MDS). This service has 
historically provided primarily point-to-multipoint and one-way

[[Page 17585]]

video services to subscribers.\90\ 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.\91\ 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.\92\ The Commission 
established this small business definition in the context of this 
particular service and with the approval of the SBA.\93\ The MDS 
auction resulted in 67 successful bidders obtaining licensing 
opportunities for 493 Basic Trading Areas (BTAs).\94\ 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.\95\ 
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.
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    \90\ 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.
    \91\ 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).
    \92\ 47 CFR 21.961 and 1.2110.
    \93\ 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).
    \94\ 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.
    \95\ 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. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business 
size standard for ``other telecommunications'' (annual receipts of 
$11 million or less). See 13 CFR 121.201.
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Wireless and Commercial Mobile Services

    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.\96\ 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.\97\ 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 1,780 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.\98\ 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.
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    \96\ 13 CFR 121.201, NAICS code 513322.
    \97\ 1992 Census, Series UC92-S-1, at Table 5, NAICS code 
513322.
    \98\ Telecommunications Provider Locater, Table 1 (November 
2001).
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    32. 220 MHz Radio Service--Phase I Licensees. The 220 MHz 
service has both Phase I and Phase II licenses. Phase I licensing 
was conducted by lotteries in 1992 and 1993. There are approximately 
1,000 such non-nationwide licensees and four nationwide licensees 
currently authorized to use 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.\99\ 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.\100\ If this 
general ratio continues in 2002 in the context of Phase I 220 MHz 
licensees, we estimate that nearly all such licensees are small 
businesses under the SBA's definition.
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    \99\ 13 CFR 121.201, NAICS code 513322.
    \100\ U.S. Bureau of the Census, U.S. Department of Commerce, 
1992 Census of Transportation, Communications, and Utilities, UC92-
S-1, Subject Series, Establishment and Firm Size, Table 5, 
Employment Size of Firms; 1992, NAICS codes 513321, 513322, and 
51333.
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    33. 220 MHz Radio Service--Phase II Licensees. The Phase II 220 
MHz service is subject to spectrum auctions. In the 220 MHz Third 
Report and Order, we adopted criteria for defining small and very 
small businesses for purposes of determining their eligibility for 
special provisions such as bidding credits and installment 
payments.\101\ 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.\102\ The SBA has approved these definitions.\103\ To date, 
three Phase II 220 MHz auctions have been conducted. In the first 
auction, 908 licenses were auctioned in three different-sized 
geographic areas: three Nationwide (NWA) licenses, 30 Regional 
Economic Area Group (EAG) Licenses, and 875 Economic Area (EA) 
Licenses. Of the 908 licenses auctioned, 693 were sold.\104\ Thirty-
nine companies claiming small or very small businesses status won 
licenses in the first 220 MHz auction. The second auction included 
225 licenses: 216 EA licenses and 9 EAG licenses. Of the 225 
licenses auctioned, 222 were sold.\105\ Fourteen companies claiming 
small or very small business status won 158 licenses. The third 
auction included four licenses; two EA licenses and two EAG 
licenses.\106\ No company claiming small or very small business 
status won licenses in the third auction.
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    \101\ 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-
70, at paragraphs 291-295 (1997).
    \102\ Id at paragraph 291.
    \103\ See Letter to D. Phython, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(January 6, 1998).
    \104\ Phase II 220 MHz Service Auction Closes'', Public Notice, 
14 FCC Rcd 605 (1998).
    \105\ ``Phase II 220 MHz Service Spectrum Auction Closes'', 
Public Notice, 14 FCC Rcd 11218 (1999).
    \106\ ``Multiple Radio Service Auction Closes'', Public Notice, 
17 FCC Rcd 1446 (2002).
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    34. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band 
Order, we adopted criteria for defining small businesses and very 
small businesses for purposes of determining their eligibility for 
special provisions such as bidding credits and installment 
payments.\107\ We have defined a small business as an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues not exceeding $15 million for the preceding three 
years. Additionally, a very small business is defined as an entity 
that, together with its affiliates and controlling principals, has 
average gross revenues that are not more than $3 million for the 
preceding three years. An auction of 104 licenses (two in each of 
the 52 Major Economic Areas (MEAs)) commenced on September 6, 2000, 
and closed on September 21, 2000.\108\ Of the 104 licenses 
auctioned, 96 licenses were sold to nine winning bidders. Five of 
the winning bidders claimed small or very small business status and 
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.\109\ All eight of the licenses auctioned were sold to three 
winning bidders. One of the winning bidders

[[Page 17586]]

claimed status as a small business and won a total of two licenses.
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    \107\ See Service Rules for the 746-764 and 776-794 MHz Bands, 
and Revisions to Part 27 of the Commission's Rules, WT Docket No. 
99-168, Second Report and Order, 15 FCC Rcd 5299 (2000).
    \108\ See generally Public Notice, ``700 MHz Guard Bands Auction 
Closes,'' 15 FCC Rcd 18026 (2000).
    \109\ ``700 MHz Guard Bands Auction Closes'', Public Notice 16 
FCC Rcd 4590 (2001).
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    35. Private and Common Carrier Paging. 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.\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. 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. The SBA has 
approved these definitions.\111\ An auction of Metropolitan Economic 
Area (MEA) licenses commenced on February 24, 2000, and closed on 
March 2, 2000.\112\ Of the 985 licenses auctioned, 440 were sold to 
57 companies claiming status as a small or very small business. A 
second auction commenced on October 30, 2001 and closed on December 
5, 2001.\113\ One hundred, thirty-two entities claiming small or 
very small business status won a total of 3,724 licenses. At 
present, there are approximately 4,500 Private-Paging site-specific 
licenses and 5,100 Common Carrier Paging site-specific 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.\114\ We do not have data specifying the 
number of these carriers that are not independently owned and 
operated or have more than 1,500 employees, and therefore are unable 
at this time to estimate with greater precision the number of paging 
carriers that would qualify as small business concerns under the 
SBA's definition. Consequently, we estimate that there are fewer 
than 608 small paging carriers that may be affected by these revised 
rules. We estimate that the majority of private and common carrier 
paging providers would qualify as small entities under the SBA 
definition.
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    \110\ ``Revisions 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 (1999).
    \111\ Id.
    \112\ ``929-931 MHz Paging Auction Closes'', Public Notice, 15 
FCC Rcd 4858 (2000).
    \113\ ``Lower and Upper Band Auction Closes'', Public Notice, 16 
FCC Rcd 21821 (2001).
    \114\ See Telecommunications Provider Locater at Table 1 
(November 2001).
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    36. Broadband Personal Communications Service (PCS). The 
broadband PCS spectrum is divided into six frequency blocks 
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.\115\ 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.\116\ These regulations defining 
``small entity'' in the context of broadband PCS auctions have been 
approved by the SBA.\117\ No small businesses within the SBA-
approved definition bid successfully for licenses in Blocks A and B. 
An auction for C-Block licenses commenced on December 18, 1995 and 
ended on May 6, 1996.\118\ There were 89 winning bidders that won a 
total of 493 licenses and that claimed status as a small business in 
the Block C auction. A second C-Block Auction commenced on July 3, 
1996 and ended on July 16, 1996.\119\ An auction for the D and F 
Blocks commenced on August 16, 1996 and ended on January 14, 
1997.\120\ A total of 93 winning bidders that won a total of 598 
licenses claimed small or very small business status in the D, E, 
and F Block auction. A re-auction of 347 C, D, E, and F Block 
licenses commenced on March 23, 1999 and ended on April 15, 
1999.\121\ There were 48 winning bidders that won a total of 277 
licenses and that claimed status as a small or very small business. 
An auction of 422 C and F Broadband PCS licenses commenced on 
December 12, 2000 and ended on January 26, 2001.\122\ Of the 35 
winning bidders in this auction, 29 claimed status as a small or 
very small business and won a total of 248 licenses.
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    \115\ See Amendment of Parts 20 and 24 of the Commission's 
rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket 
No. 96-59 Section 60 (released June 24, 1996, 61 FR 33859 (July 1, 
1996).
    \116\ Id.
    \117\ 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).
    \118\ ``Entrepreneurs'' C-Block Auction Closes'', Public Notice, 
DA 96-716 (released on May 8, 1996).
    \119\ ``Entrepreneurs'' C-Block Reauction Closes'', Public 
Notice, DA 96-1153 (released on July 17, 1996).
    \120\ ``D, E and F Block Auction Closes, DA 97-81 (released 
January 15, 1997).
    \121\ ``C, D, E, and F Block Broadband PCS License Auction 
Closes: Winning Bidders of 302 Licenses Announced'', Public Notice, 
DA 99-757 (released April 20, 1999).
    \122\ ``C and F Block PCS Auction Closes'', Public Notice, 16 
FCC Rcd 2339 (2001).
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    37. Narrowband PCS. To date, three narrowband PCS auctions have 
been conducted. Through these auctions, 358 licenses were sold to 
winning bidders. Twelve entities claiming small or very small 
business status were the winning bidders for 322 licenses. To ensure 
meaningful participation of small business entities in the auctions, 
the Commission adopted a two-tiered definition of small businesses 
in the Narrowband PCS Second Report and Order.\123\ 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.\124\
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    \123\ In the Matter of Amendment of the Commission's rules to 
Establish New Personal Communications Services, Narrowband PCS, 
Docket No. ET 92-100, Docket No. PP 93-253, Second Report and Order 
and Second Further Notice of Proposed Rulemaking, 65 FR 35875 (June 
6, 2000).
    \124\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
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    38. Rural Radiotelephone Service. The Commission has not adopted 
a definition of small entity specific to the Rural Radiotelephone 
Service.\125\ A significant subset of the Rural Radiotelephone 
Service is the Basic Exchange Telephone Radio Systems (BETRS).\126\ 
We will use the SBA's definition applicable to radiotelephone 
(wireless) companies, i.e., an entity employing no more than 1,500 
persons.\127\ There are approximately 640 licensees in the Rural 
Radiotelephone Service, and we estimate that almost all of the 
licenses that are authorized in the Rural Radio Service qualify as 
small entities under the SBA's definition.
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    \125\ The service is defined in section 22.99 of the 
Commission's rules, 47 CFR 22.99.
    \126\ BETRS is defined in section 22.757 and 22.759 of the 
Commission's rules, 47 CFR 22.757 and 22.759.
    \127\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
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    39. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service.\128\ We will use the SBA's definition 
applicable to radiotelephone (wireless) companies, i.e., an entity 
employing no more than 1,500 persons.\129\ There are approximately 
100 licensees in the Air-Ground Radiotelephone Service, and we 
estimate that almost all of the licenses authorized in the Air-
Ground Radiotelephone Service qualify as small entities under the 
SBA's definition.
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    \128\ The service is defined in section 22.99 of the 
Commission's rules, 47 CFR 22.99.
    \129\ 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'' in two 
tiers (for purposes of auctioning 800 MHz and 900 MHz SMR licenses) 
as a firm that has average annual gross revenues of either $3 
million or $15 million or less in the three preceding calendar 
years.\130\ The SBA has approved this small business size standard 
for the 800 MHz and 900 MHz SMR services.\131\ An auction for 900 
MHz SMR licenses commenced on December 5, 1995 and closed on April 
15, 1996.\132\ Sixty winning bidders that won a total of 263 
licenses in the 900 MHz SMR band claimed status as a small business. 
An auction for 525 800 MHz SMR geographic area licenses for the 
upper 200 channels began on October 28, 1997 and was completed on 
December 8,

[[Page 17587]]

1997.\133\ Ten winning bidders that won a total of 38 licenses in 
the upper 200 channels in the 800 MHz SMR band claimed status as a 
small business. 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.\134\ Of the 1,050 licenses offered 
in that auction, 1,030 licenses were sold. Eleven winning bidders 
that won a total of 108 licenses in the General Category channels in 
the 800 MHz SMR band claimed status as a small business. A second 
auction for the 800 MHz General Category channels, for which 23 
licenses were sold, was completed on January 17, 2002.\135\ One 
winning bidder that won five licenses claimed status as a small 
business. 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.\136\ Nineteen winning bidders that won a 
total of 129 licenses claimed status as a small business. In 
addition, there are numerous incumbent site-by-site SMR licenses on 
the 800 and 900 MHz band.
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    \130\ 47 CFR 90.814(b)(1).
    \131\ See Letter to Thomas J. Sugrue, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(August 10, 1999).
    \132\ ``FCC Announces Winning Bidders in the Auction of 1020 
Licenses to Provider 900 MHz SMR in Major Trading Areas'', Public 
Notice, DA 96-586 (released April 15, 1996).
    \133\ ``800 MHz SMR Auction Closes'', Public Notice, DA 97-2583 
(released December 9, 1997).
    \134\ ``800 MHz SMR Specialized Mobile Radio (SMR) Service 
General Category (851-854 MHz) and Upper Band (861-865 MHz) Auction 
Closes'', Public Notice, DA 00-2037 (released September 9, 2000).
    \135\ ``Multi-Radio Service Auction Closes'', Public Notice, DA 
02-157 (released January 22, 2002).
    \136\ ``800 MHz SMR Service Lower 80 Channels Auction Closes'', 
Public Notice, DA 00-2752 (released October 23, 2000).
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    41. Private Land Mobile Radio (PLMR). PLMR systems serve an 
essential role in a range of industrial, business, land 
transportation, and public safety activities. These radios are used 
by companies of all sizes operating in all U.S. business categories. 
The Commission has not developed a definition of small entity 
specifically applicable to PLMR licensees due to the vast array of 
PLMR users. For the purpose of determining whether a licensee is a 
small business as defined by the SBA, each licensee would need to be 
evaluated within its own business area.
    42. The Commission is unable at this time to estimate the number 
of small businesses which could be impacted by the rules. The 
Commission's 1994 Annual Report on PLMRs \137\ 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.
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    \137\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at paragraph 116.
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    43. Amateur Radio Service. We estimate that 9,800 applicants 
will apply for vanity call signs in FY 2003. These licensees are 
presumed to be individuals, and therefore not small entities. All 
other amateur licensees are exempt from payment of regulatory fees.
    44. Aviation and Marine Radio Service. Small businesses in the 
aviation and marine radio services use a marine very high frequency 
(VHF) radio, any type of emergency position indicating radio beacon 
(EPIRB) and/or radar, a VHF aircraft radio, and/or any type of 
emergency locator transmitter (ELT). The Commission has not 
developed a definition of small entities specifically applicable to 
these small businesses. The applicable definition of small entity is 
the definition under the SBA rules for radiotelephone (wireless) 
communications.\138\
---------------------------------------------------------------------------

    \138\ 13 CFR 121.201, NAICS codes 513321, 513322, and 51333.
---------------------------------------------------------------------------

    45. Most applicants for recreational licenses are individuals. 
Approximately 581,000 ship station licensees and 131,000 aircraft 
station licensees operate domestically and are not subject to the 
radio carriage requirements of any statute or treaty. For purposes 
of our evaluations and conclusions in this 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 10,200 will be subject to FY 2003 
regulatory fees.
    46. Fixed Microwave Services. Microwave services include common 
carrier,\139\ private-operational fixed,\140\ and broadcast 
auxiliary radio services.\141\ At present, there are approximately 
22,015 common carrier fixed licensees and 61,670 private 
operational-fixed licensees and broadcast auxiliary radio licensees 
in the microwave services. The Commission has not yet defined a 
small business with respect to microwave services. For purposes of 
this IRFA, we will use the SBA's definition applicable to 
radiotelephone (wireless) companies--i.e., an entity with no more 
than 1,500 persons.\142\ We estimate that all of the Fixed Microwave 
licensees (excluding broadcast auxiliary licensees) would qualify as 
small entities under the SBA definition for radiotelephone 
(wireless) companies.
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    \139\ 47 CFR 101 et seq. (formerly, part 21 of the Commission's 
Rules).
    \140\ 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.
    \141\ 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.
    \142\ 13 CFR 121.201, NAICS codes 513321, 513322, 51333.
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    47. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, 
highway maintenance, and emergency medical services.\143\ There are 
a total of approximately 127,540 licensees within these services. 
Governmental entities \144\ as well as private businesses comprise 
the licensees for these services. As indicated supra in paragraph 
four of this IRFA, all governmental entities with populations of 
less than 50,000 fall within the definition of a small entity.\145\ 
All licensees in this category are exempt from the payment of 
regulatory fees.
---------------------------------------------------------------------------

    \143\ 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.
    \144\ 47 CFR 1.1162.
    \145\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

    48. Personal Radio Services. Personal radio services provide 
short-range, low power radio for personal communications, radio 
signaling, and business communications not provided for in other 
services. The services include the citizen's band (CB) radio 
service, general mobile radio service (GMRS), radio control radio 
service, and family radio service (FRS).\146\ 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.
---------------------------------------------------------------------------

    \146\ Licensees in the Citizens Band (CB) Radio Service, General 
Mobile Radio Service (GMRS), Radio Control (R/C) Radio Service and 
Family Radio Service (FRS) are governed by Subpart D, Subpart A, 
Subpart C, and Subpart B, respectively, of part 95 of the 
Commission's rules. 47 CFR 95.401 through 95.428; 95.1 through 
95.181; 95.201 through 95.225; 47 CFR 95.191 through 95.194.
---------------------------------------------------------------------------

    49. Offshore Radiotelephone Service. This service operates on 
several UHF TV broadcast channels that are not used for TV 
broadcasting in the coastal areas of states bordering the Gulf of 
Mexico.\147\ There is presently one licensee in this service that 
holds 18 licenses. We are unable to estimate at this time whether 
the licensee would qualify as small under the SBA's definition

[[Page 17588]]

for radiotelephone (wireless) communications.
---------------------------------------------------------------------------

    \147\ This service is governed by subpart I of part 22 of the 
Commission's rules. See 47 CFR 22.1001 through 22.1037.
---------------------------------------------------------------------------

    50. Wireless Communications Services. This service can be used 
for fixed, mobile, radiolocation and digital audio broadcasting 
satellite uses. The Commission defined ``small business'' for the 
wireless communications services (WCS) auction as an entity with 
average gross revenues of $40 million for each of the three 
preceding years, and a ``very small business'' as an entity with 
average gross revenues of $15 million for each of the three 
preceding years. The SBA has approved these definitions.\148\ 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.
---------------------------------------------------------------------------

    \148\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division from A. Alvarez, Administrator, SBA (December 2, 
1998).
---------------------------------------------------------------------------

    51. 39 GHz Service. The Commission defined ``small entity'' for 
39 GHz licenses as an entity that has average gross revenues of less 
than $40 million in the three previous calendar years.\149\ 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.\150\ These regulations defining 
``small entity'' in the context of 39 GHz auctions have been 
approved by the SBA. The auction of the 2,173 39 GHz licenses began 
on April 12, 2000 and closed on May 8, 2000. The 18 bidders who 
claimed small business status won 849 licenses.
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    \149\ 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).
    \150\ Id.
---------------------------------------------------------------------------

    52. Local Multipoint Distribution Service. The auction of the 
1,030 Local Multipoint Distribution Service (LMDS) licenses began on 
February 18, 1998 and closed on March 25, 1998. The Commission 
defined ``small entity'' for LMDS licenses as an entity that has 
average gross revenues of less than $40 million in the three 
previous calendar years.\151\ 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.\152\ These 
regulations defining ``small entity'' in the context of LMDS 
auctions have been approved by the SBA.\153\ 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.
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    \151\ See Local Multipoint Distribution Service, Second Report 
and Order, 62 FR 23148, April 29, 1997.
    \152\ Id.
    \153\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA 
(January 6, 1998).
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    53. 218-219 MHz Service. The first auction of 218-219 MHz 
spectrum resulted in 170 entities winning licenses for 595 
Metropolitan Statistical Area (MSA) licenses. Of the 594 licenses, 
557 were won by entities qualifying as a small business. For that 
auction, we defined a small business as an entity that, together 
with its affiliates, has no more than a $6 million net worth and, 
after federal income taxes (excluding any carry over losses), has no 
more than $2 million in annual profits each year for the previous 
two years.\154\ 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.\155\ A very small business is defined as an entity that, 
together with its affiliates and persons or entities that hold 
interests in such an entity and its affiliates, has average annual 
gross revenues not to exceed $3 million for the preceding three 
years.\156\ 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.
---------------------------------------------------------------------------

    \154\ 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).
    \155\ 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).
    \156\ Amendment of Part 95 of the Commission's rules to Provide 
Regulatory Flexibility in the 218-219 MHz Service, Report and Order 
and Memorandum Opinion and Order, 64 FR 59656 (1999).
---------------------------------------------------------------------------

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

    54. With certain exceptions, the Commission's Schedule of 
Regulatory Fees applies to all Commission licensees and regulatees. 
Most licensees will be required to count the number of licenses or 
call signs authorized, complete and submit an FCC Form 159 (``FCC 
Remittance Advice''), and pay a regulatory fee based on the number 
of licenses or call signs.\157\ 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.
---------------------------------------------------------------------------

    \157\ The following categories are exempt from the Commission's 
Schedule of Regulatory Fees: Amateur radio licensees (except 
applicants for vanity call signs) and operators in other non-
licensed services (e.g., Personal Radio, part 15, ship and 
aircraft). Governments and non-profit (exempt under section 501(c) 
of the Internal Revenue Code) entities are exempt from payment of 
regulatory fees and need not submit payment. Non-commercial 
educational broadcast licensees are exempt from regulatory fees as 
are licensees of auxiliary broadcast services such as low power 
auxiliary stations, television auxiliary service stations, remote 
pickup stations and aural broadcast auxiliary stations where such 
licenses are used in conjunction with commonly owned non-commercial 
educational stations. Emergency Alert System licenses for auxiliary 
service facilities are also exempt as are instructional television 
fixed service licensees. Regulatory fees are automatically waived 
for the licensee of any translator station that: (1) Is not licensed 
to, in whole or in part, and does not have common ownership with, 
the licensee of a commercial broadcast station; (2) does not derive 
income from advertising; and (3) is dependent on subscriptions or 
contributions from members of the community served for support. 
Receive only earth station permittees are exempt from payment of 
regulatory fees. A regulatee will be relieved of its fee payment 
requirement if its total fee due, including all categories of fees 
for which payment is due by the entity, amounts to less than $10.
---------------------------------------------------------------------------

    55. Each licensee must submit the FCC Form 159 to the 
Commission's lockbox bank after computing the number of units 
subject to the fee. Licensees may also file electronically to 
minimize the burden of submitting multiple copies of the FCC Form 
159. Applicants who pay small fees in advance and provide fee 
information as part of their application must use FCC Form 159.
    56. Licensees and regulatees are advised that failure to submit 
the required regulatory fee in a timely manner will subject the 
licensee or regulatee to a late payment penalty of 25 percent in 
addition to the required fee.\158\ If payment is not received, new 
or pending applications may be dismissed, and existing 
authorizations may be subject to rescission.\159\ 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.\160\ Nonpayment of 
regulatory fees is a debt owed the United States pursuant to 31 
U.S.C. 3711

[[Page 17589]]

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.\161\
---------------------------------------------------------------------------

    \158\ 47 CFR 1.1164.
    \159\ 47 CFR 1.1164(c).
    \160\ Public Law 104-134, 110 Stat. 1321 (1996).
    \161\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

    57. The Commission's rules currently provide for relief in 
exceptional circumstances. Persons or entities may request a waiver, 
reduction or deferment of payment of the regulatory fee.\162\ 
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.
---------------------------------------------------------------------------

    \162\ 47 CFR 1.1166.
---------------------------------------------------------------------------

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

    58. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed 
approach, which may include the following four alternatives: (1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small 
entities; (3) the use of performance, rather than design, standards; 
and (4) an exemption from coverage of the rule, or any part thereof, 
for small entities. As described in section IV of this IRFA, supra, 
we have created procedures in which all fee-filing licensees and 
regulatees use a single form, FCC Form 159, and have described in 
plain language the general filing requirements. We have sought 
comment on other alternatives that might simplify our fee procedures 
or otherwise benefit small entities, while remaining consistent with 
our statutory responsibilities in this proceeding.
    59. The Omnibus Consolidated and Emergency Supplemental 
Appropriations Act for FY 2002, 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) 2003.\163\ As noted, we 
seek comment on the proposed methodology for implementing these 
statutory requirements and any other potential impact of these 
proposals on small entities.
---------------------------------------------------------------------------

    \163\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    60. With the use of actual cost accounting data for computation 
of regulatory fees, we found that some fees which were very small in 
previous years would have increased dramatically and would have a 
disproportionate impact on smaller entities. The methodology we are 
adopting in this Notice of Proposed Rulemaking minimizes this impact 
by limiting the amount of increase and shifting costs to other 
services which, for the most part, are larger entities.
    61. Several categories of licensees and regulatees are exempt 
from payment of regulatory fees. See, e.g., footnote 157, supra.

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

    62. None.

Attachment B

Sources of Payment Unit Estimates for FY 2003

    In order to calculate individual service fees for FY 2003, we 
adjusted FY 2002 payment units for each service to more accurately 
reflect expected FY 2003 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 2003 estimates with actual 
FY 2002 payment units to ensure that our revised estimates were 
reasonable. Where appropriate, we adjusted and/or rounded our final 
estimates because the impact of certain variables could not be 
estimated exactly. These include an unknown number of waivers and/or 
exemptions that may occur in FY 2003, as well as the number of 
actual licensees or station operators that may also fluctuate 
because of economic, technical or other reasons. Therefore, when we 
note that our estimated FY 2003 payment units are based on FY 2002 
actual payment units, we do not necessarily mean that our FY 2003 
projection is exactly the same number as in FY 2002. It means that 
we have either rounded the FY 2003 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,\164\ 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 Media Services
                                 Bureau estimates and actual FY 2002
                                 payment units.
UHF/VHF Television Stations...  Based on Media Services Bureau estimates
                                 and actual FY 2002 payment units.
AM/FM/TV Construction Permits.  Based on Media Services Bureau estimates
                                 and actual FY 2002 payment units.
LPTV, Translators and Boosters  Based on actual FY 2002 payment units.
Auxiliaries...................  Based on FY 2002 payment units.
MDS/LMDS/MMDS.................  Based on Wireless Telecommunications
                                 Bureau estimates.
Cable Antenna Relay Service     Based on Media Services Bureau
 (CARS).                         (previously Cable Services Bureau)
                                 estimates.
Cable Television System         Based on Media Services Bureau
 Subscribers.                    (previously Cable Services Bureau),
                                 industry estimates of subscribership,
                                 and FY 2002 payment units.
Interstate Telecommunication    Based on actual FY 2002 interstate
 Service Providers.              revenues reported on Telecommunications
                                 Reporting Worksheet, adjusted for FY
                                 2003 revenue growth/decline for
                                 industry as estimated by the Wireline
                                 Competition Bureau.
Earth Stations................  Based on actual FY 2002 payment
                                 estimates.
Space Stations (GSOs & NGSOs).  Based on International Bureau licensee
                                 data base estimates.
International Bearer Circuits.  Based on International Bureau estimates.
International HF Broadcast      Based on International Bureau estimates.
 Stations, International
 Public Fixed Radio Service.
------------------------------------------------------------------------


[[Page 17590]]

Attachment C

Calculation of FY 2003 Revenue Requirements and Pro-Rata Fees

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                           Pro-rated FY
                                                FY 2003 payment               FY 2002      2003 revenue    Computed new   Rounded new FY    Expected FY
                 Fee category                        units        Years       revenue       requirement       FY 2003          2003        2003 revenue
                                                                             estimate          \**\       regulatory fee  regulatory fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)........................             3,300       10         204,239         251,148               8              10         330,000
PLMRS (Shared use)...........................            53,300       10       2,166,927       2,664,616               5               5       2,665,000
Microwave....................................             6,100       10       1,145,732       1,408,877              23              25       1,525,000
218-219 MHz (Formerly IVDS)..................                 5       10           1,245           1,531              31              30           1,500
Marine (Ship)................................             4,400       10         518,070         637,058              14              15         660,000
GMRS.........................................            10,600        5          79,205          97,396               2               5         265,000
Aviation (Aircraft)..........................             3,100       10         134,499         165,390               5               5         155,000
Marine (Coast)...............................             1,000       10          89,666         110,260              11              10         100,000
Aviation (Ground)............................             1,700        5          99,629         122,511              14              15         127,500
Amateur Vanity Call Signs....................             9,800       10         130,016         159,877            1.63            1.63         159,877
AM Class A...................................                78        1         159,008         195,528           2,507           2,500         195,000
AM Class B...................................             2,168        1       1,957,308       2,406,853           1,110           1,100       2,384,800
AM Class C...................................             1,004        1         675,633         830,809             827             825         828,300
AM Class D...................................             2,021        1       2,214,699       2,723,360           1,348           1,350       2,728,350
FM Classes A, B1 & C3........................             3,168        1       4,531,717       5,572,539           1,759           1,750       5,544,000
FM Classes B, C, C1 & C2.....................             3,022        1       5,595,554       6,880,713           2,277           2,275       6,875,050
AM Construction Permits......................                48        1          17,694          21,758             453             455          21,840
FM Construction Permits......................               202        1         301,875         371,209           1,838           1,850         373,700
Satellite TV.................................               126        1         102,658         126,235           1,002           1,000         126,000
Satellite TV Construction Permit.............                 5        1           2,092           2,573             515             515           2,575
VHF Markets 1-10.............................                44        1       2,062,516       2,536,224          57,641          57,650       2,536,600
VHF Markets 11-25............................                60        1       2,108,844       2,593,192          43,220          43,225       2,593,500
VHF Markets 26-50............................                73        1       1,788,836       2,199,687          30,133          30,125       2,199,125
VHF Markets 51-100...........................               117        1       1,720,690       2,115,889          18,085          18,075       2,114,775
VHF Remaining Markets........................               209        1         755,062         928,481           4,442           4,450         930,050
VHF Construction Permits.....................                16        1          60,275          74,119           4,632           4,625          74,000
UHF Markets 1-10.............................                96        1       1,236,992       1,521,098          15,845          15,850       1,521,600
UHF Markets 11-25............................                96        1       1,005,653       1,236,627          12,882          12,875       1,236,000
UHF Markets 26-50............................               129        1         848,240       1,043,059           8,086           8,075       1,041,675
UHF Markets 51-100...........................               181        1         733,517         901,988           4,983           4,975         900,475
UHF Remaining Markets........................               190        1         220,628         271,301           1,428           1,425         270,750
UHF Construction Permits.....................                45        1         304,192         374,057           8,312           8,300         373,500
Auxiliaries..................................            25,000        1         239,109         294,027              12              10         250,000
International HF Broadcast...................                 5        1           2,959           3,639             728             730           3,650
LPTV/Translators/Boos-ters...................             2,993        1         892,674       1,097,699             367             365       1,092,445
CARS.........................................             1,450        1         103,614         127,412              88              90         130,500
Cable Systems................................        67,500,000        1      36,405,378      44,766,781            0.66            0.66      44,766,781
Interstate Telecommunication Service             63,000,000,000        1     101,693,547     125,050,006         0.00198         0.00198     125,050,006
 Providers...................................
CMRS Mobile Services (Cellular/Public Mobile)       140,000,000        1      29,841,965      36,695,916            0.26            0.26      36,695,916
CMRS Messaging Services......................        19,700,000        1       1,769,590       2,176,021            0.11            0.11       2,176,021
MDS/MMDS/LMDS................................             4,586        1         985,329       1,211,635             264             265       1,215,290
Internationa Bearer Circuits.................         2,600,000        1       5,638,992       6,934,127            2.67            2.67       6,934,127
International Public Fixed...................                 1        1           1,395           1,715           1,715           1,725           1,725
Earth Stations...............................             3,149        1         540,207         664,280             211             210         661,290
Space Stations (Geostationary)...............                75        1       7,052,426       8,672,192         115,629         115,625       8,671,875
Space Stations (Non-geostationary............                 7        1         616,902         758,589         108,370         108,375         758,625
                                              -------------------
    Total Estimated Revenue to be Collected..  ................  .......     218,757,000     269,000,000  ..............  ..............     269,268,794
                                              -------------------
    Total Revenue Requirement................  ................  .......  ..............     269,000,000  ..............  ..............     269,000,000
                                              -------------------
    Difference...............................  ................  .......  ..............               0  ..............  ..............        268,794
--------------------------------------------------------------------------------------------------------------------------------------------------------
\164\ 1.2297 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)).


[[Page 17591]]

Attachment D

FY 2003 Schedule of Regulatory Fees (Proposed)

------------------------------------------------------------------------
                                                                Annual
                                                              regulatory
                        Fee category                          fee (U.S.
                                                                 $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).......           10
Microwave (per license) (47 CFR part 101)..................           25
218-219 MHz (Formerly Interactive Video Data Service) (per            30
 license) (47 CFR part 95).................................
Marine (Ship) (per station) (47 CFR part 80)...............           15
Marine (Coast) (per license) (47 CFR part 80)..............           10
General Mobile Radio Service (per license) (47 CFR part 95)            5
Rural Radio (47 CFR part 22) (previously listed under the              5
 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)...........           15
Amateur Vanity Call Signs (per call sign) (47 CFR part 97).         1.63
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20,           .26
 22, 24, 27, 80 and 90)....................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24          .11
 and 90)...................................................
Multipoint Distribution Services (MMDS, LMDS & MDS) (per             265
 call sign) (47 CFR part 21)...............................
AM Radio Construction Permits..............................          455
FM Radio Construction Permits..............................        1,850
  TV (47 CFR part 73) VHF Commercial:
    Markets 1-10...........................................       57,650
    Markets 11-25..........................................       43,225
    Markets 26-50..........................................       30,125
    Markets 51-100.........................................       18,075
    Remaining Markets......................................        4,450
    Construction Permits...................................        4,625
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10...........................................       15,850
    Markets 11-25..........................................       12,875
    Markets 26-50..........................................        8,075
    Markets 51-100.........................................        4,975
    Remaining Markets......................................        1,425
    Construction Permits...................................        8,300
Satellite Television Stations (All Markets)................        1,000
Construction Permits--Satellite Television Stations........          515
Low Power TV, TV/FM Translators & Boosters (47 CFR part 74)          365
Broadcast Auxiliary (47 CFR part 74).......................           10
CARS (47 CFR part 78)......................................           90
Cable Television Systems (per subscriber) (47 CFR part 76).          .66
Interstate Telecommunication Service Providers (per revenue       .00198
 dollar)...................................................
Earth Stations (47 CFR part 25)............................          210
Space Stations (per operational station in geostationary         115,625
 orbit) (47 CFR part 25) also includes Direct Broadcast
 Satellite Service (per operational station) (47 CFR part
 100)......................................................
Space Stations (per operational system in non-geostationary      108,375
 orbit) (47 CFR part 25)...................................
International Bearer Circuits (per active 64KB circuit)....         2.67
International Public Fixed (per call sign) (47 CFR part 23)        1,725
International (HF) Broadcast (47 CFR part 73)..............          730
------------------------------------------------------------------------


                                                          FY 2002 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  FM Classes A, B1   FM Classes B, C, C1
                Population served                   AM Class A      AM Class B      AM Class C      AM Class D          & C3                & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=20,000........................................             500             375             275             325               375                   500
20,001 to 50,000................................             925             725             375             525               725                   925
50,001 to 125,000...............................           1,500             975             525             775               975                 1,500
125,001 to 400,000..............................           2,250           1,575             800             950             1,575                 2,250
400,001 to 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
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                          FY 2003 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  FM Classes A, B1   FM Classes B, C, C1
                Population served                   AM Class A      AM Class B      AM Class C      AM Class D          & C3                & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000........................................             600             450             325             400               475                   625
25,001 to 75,000................................           1,200             900             475             600               950                 1,100
75,001 to 150,000...............................           1,800           1,125             650           1,000             1,300                 2,025
150,001 to 500,000..............................           2,700           1,925             975           1,200             2,025                 2,650

[[Page 17592]]

 
500,001 to 1,200,000............................           3,900           2,925           1,625           2,000             3,200                 3,900
1,200,001 to 3,000,000..........................           6,000           4,500           2,450           3,200             5,225                 6,250
3,000,000............................           7,200           5,400           3,100           4,000             6,650                 8,125
--------------------------------------------------------------------------------------------------------------------------------------------------------

Attachment E

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 section 73.150 and 73.152 of the Commission's 
rules.\165\ 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 2000 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.
---------------------------------------------------------------------------

    \165\ 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 section 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.\166\ The resulting 
distance to city grade contours were used to form a geographical 
polygon. Population counting was accomplished by determining which 
2000 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.
---------------------------------------------------------------------------

    \166\ 47 CFR 73.313.

[FR Doc. 03-8574 Filed 4-9-03; 8:45 am]
BILLING CODE 6712-02-P