[Federal Register Volume 68, Number 156 (Wednesday, August 13, 2003)]
[Rules and Regulations]
[Pages 48446-48469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20449]



[[Page 48445]]

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Part II





Federal Communications Commission





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47 CFR Part 1



Assessment and Collection of Regulatory Fees for Fiscal Year 2003; 
Final Rule

  Federal Register / Vol. 68, No. 156 / Wednesday, August 13, 2003 / 
Rules and Regulations  

[[Page 48446]]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 03-83; FCC 03-184]


Assessment and Collection of Regulatory Fees For Fiscal Year 2003

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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

DATES: Effective September 11, 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: July 21, 2003.
    Released: July 25, 2003.
    By the Commission: Commissioners Copps and Adelstein concurring and 
issuing separate statements.

                            Table of Contents
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                           Topic                              Paragraph
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I. Introduction............................................            1
II. Discussion
    A. Development of FY 2003 Fees
        i. Calculation of Revenue Requirements.............            2
        ii. Further Adjustments to Payment Units...........            3
        iii. Classification of LMDS........................            6
        iv. Adjustment of Fee Waiver Policies..............           11
        v. Procedural Changes and Future Streamlining of              15
         the Regulatory Fee Assessment and Collection
         Process...........................................
        vi. Commercial Mobile Radio Service (CMRS)                    20
         Messaging.........................................
        vii. Broadcast Television Stations with Single                23
         Channel Allotments................................
        viii. Amateur Radio Vanity Call Signs..............           26
    B. Procedures for Payment of Regulatory Fees
        i. De minimis Fee Payment Liability................           31
        ii. Standard Fee Calculations and Payment Dates....           32
    C. Enforcement.........................................           34
III. Procedural Matters....................................           35
Attachment A--Final 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
Attachment F--Parties Filing Comments and Reply Comments
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I. Introduction

    1. In this Report and Order (``R&O''), the Commission concludes a 
proceeding 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\ See 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 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. Further Adjustments to Payment Units
    3. In calculating the FY 2003 regulatory fees for each service in 
Attachment D, the Commission 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 R&O also adjusts the 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

[[Page 48447]]

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 have resulted in an 
ever-increasing number of stations grouped in the one million-plus 
category of the grid. This trend necessitated the need to review the 
grid. In its Fiscal Year 2003 Regulatory Fee Notice of Proposed 
Rulemaking (``NPRM''), adopted March 24, 2003 (68 FR 17577, April 10, 
2003), the Commission proposed to revise the grid to include a 
population category of ``greater than three million people'' and to 
change the population threshold amounts to reflect slightly wider 
population fields.
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    \4\ Assessment and Collection of Regulatory Fees for Fiscal Year 
1998, Report and Order, 63 FR 35847, July 1, 1998, paragraph 37.
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    5. The Commission received no comments concerning this matter. 
Therefore, beginning in Fiscal Year 2003 we will use the revised grid, 
as proposed in the NPRM, to assess regulatory fees for AM and FM 
commercial radio stations. The current and revised radio station grids 
follow:
BILLING CODE 6712-03-P

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[GRAPHIC] [TIFF OMITTED] TR13AU03.002

BILLING CODE 6712-03-C

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iii. Classification of LMDS
    6. In our NPRM, we sought comment on how to classify Local 
Multipoint Distribution Service (``LMDS'') for regulatory fees 
purposes, which since FY 2000 has been classified in the fee category 
of Multipoint Distribution Service (``MDS''). We received several 
comments from respondents suggesting that the LMDS fee category be 
reclassified in the microwave category. For example, Blooston, 
Mordkofsky, Dickens, Duffy & Prendergast (``BMDDP'') argue that LMDS 
and the microwave fee category are regulated similarly, and therefore 
should be classified together. LMDS is regulated in part 101 of the 
Commission's rules as is the microwave category, whereas MDS is 
regulated under part 21. LMDS operates in the 28 GHz and 31 GHz bands 
and is most similar to the ``upper band'' of microwave services 
category. BMDDP argues that both the microwave and LMDS services have 
similar propagation limitations, and each of these services compete (or 
could compete) for the same subscriber base within the same geographic 
market area.\5\
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    \5\ Comments of Blooston, Mordkofsky, Dickens, Duffy & 
Prendergast, pages 1-2.
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    7. In their comments, Bennet & Bennet also argue that LMDS should 
be classified in the microwave category, noting that the present 
classification of LMDS with MDS places LMDS at a competitive 
disadvantage without any rational basis.\6\ Bennet & Bennet argue that 
by the Commission's own admission in its Fixed Wireless Report, it 
recognizes that the lower (MDS) and upper (LMDS, microwave) band 
services have significantly different propagation characteristics and 
generally serve two distinct markets.\7\ As a result, Bennet & Bennet 
conclude that although LMDS and MDS share some similarities, these two 
fee categories are regulated under different rules, utilize different 
network equipment configurations, and serve different markets.\8\
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    \6\ Comments of Bennet & Bennet, PLC on behalf of its LMDS 
clients, page 1.
    \7\ Ibid., page 2.
    \8\ Ibid., pages 2, 4, and 5.
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    8. The Commission received a reply comment that addressed the 
distinctions between MDS and LMDS. The Martin Group, on behalf of its 
Local Multipoint Distribution Service clients, concurs with the 
arguments raised by respondents Bennet & Bennet, and BMDDP that LMDS 
should be reclassified in the microwave fee category. The Martin Group 
also notes that MDS and LMDS are not similar in technologies or 
usage.\9\ While LMDS and MDS share the same ``Multipoint Distribution 
Service'' designation, the technologies involved are radically 
different--MDS systems, for the most part, use one-way multichannel 
video systems, while LMDS systems deliver megabytes of data to 
customers. The Martin Group is not aware of any point-to-point 
applications of MDS equipment, but point-to-point systems have been 
successfully deployed using the LMDS spectrum in a manner operationally 
similar to microwave technology.\10\
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    \9\ Comments of Martin Group on behalf of its LMDS clients, page 
2.
    \10\ Ibid., pages 2 and 3.
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    9. The three commenters on this issue have raised substantive 
arguments addressing the technological characteristics of MDS, LMDS, 
and the microwave fee category. Based on these distinctions, the 
respondents advocate that LMDS be reclassified as a microwave service 
for regulatory fee purposes. From the comments we have received, we 
concur that substantive distinctions exist between MDS and LMDS and 
that they should not be placed in the same fee category. However, we 
are unpersuaded that LMDS should be moved to the microwave service 
category. Recent technological and commercial applications using LMDS 
service indicate that this service may develop on a separate track from 
current microwave services. LMDS offers significant potential in 
offering a broad range of one-way and two-way voice, video, and data 
service capability, and substantially more capacity than other wireless 
services. We conclude that the best resolution at this time is to move 
LMDS administratively into a separate fee category, while maintaining 
its current fee structure, and initiate a specific proceeding that 
addresses the policies and fee structure governing LMDS and other 
wireless services. All other rules and regulations governing LMDS at 
this time will continue to apply.
    10. We note that although we have separated MDS and LMDS into 
separate fee categories, the regulatory fee amounts for both services 
this fiscal year will be $265 per license. This is a reduction of more 
than 38 percent from last year's fee and is a significantly reduced 
financial obligation for LMDS licensees.\11\
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    \11\ The regulatory fee amount for the MDS/LMDS service category 
was $450 per license held in FY 2001, and $430 per license held in 
FY 2002.
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iv. Adjustment of Fee Waiver Policies
    11. In our NPRM, we addressed the policies applicable to granting 
fee waivers based on financial hardship.\12\ We emphasized that under 
existing policy, although evidence of bankruptcy or receivership is 
generally sufficient to establish financial hardship, case-by-case 
review of fee waiver requests is necessary to determine whether a 
waiver would be in the public interest, even in bankruptcy cases. We 
also sought comment on whether we should set a cap on the amount of 
fees that we will generally waive in circumstances involving bankruptcy 
and otherwise. We tentatively proposed a cap of either $500,000 or $1 
million on the amount of fees that would be waived for a single entity 
and its affiliates.
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    \12\ Notice of Proposed Rulemaking, 68 FR 17577, April 10, 2003, 
paragraphs 10-12.
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    12. Only one commenter, the Verizon telephone companies (Verizon), 
\13\ responded to this proposal. Verizon asserts that the Commission 
should not grant fee waivers based on bankruptcy. According to Verizon, 
doing so unfairly shifts the cost of the bankrupt's failure to the 
Commission and to the bankrupt's competitors, who will have to pay 
higher fees and suffer competitive disadvantage. Verizon maintains that 
granting waivers to bankrupts may significantly reduce the revenues 
from fees. In this regard, Verizon estimates that the current upsurge 
in bankruptcies may affect companies accounting for up to 20 percent of 
revenues from large telecommunications firms and 30 percent of large 
interexchange carriers. Moreover, Verizon observes that companies in 
bankruptcy may nevertheless have sufficient funds to pay regulatory 
fees and that especially companies undergoing Chapter 11 reorganization 
should be expected to pay applicable fees on a going-forward basis.\14\ 
In Verizon's view, the bankrupt entity's liability for regulatory fees 
should be left to bankruptcy law, which will set the priority of the 
fees relative to other obligations and discount the bankrupt's 
liability as appropriate.\15\ Verizon agrees with our proposal to cap 
all other fee waivers at $500,000 to $1 million.
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    \13\ The Verizon telephone companies are the local exchange 
carriers affiliated with Verizon Communications, Inc.
    \14\ See 11 U.S.C. 503, 507(a)(1) (allowance of debtor's 
administrative expenses).
    \15\ See 11 U.S.C. 507, 726 (regarding priorities).
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    13. Although we share Verizon's concern over the impact that 
bankruptcies may have on our ability to collect fees, we find that 
Verizon's proposals go too far. We continue to

[[Page 48450]]

believe that in appropriate circumstances the public is served by 
assisting financially distressed telecommunications companies, 
especially small entities, by granting them relief or partial relief 
from Section 8 and Section 9 fees, and thereby assisting them in 
remaining effective competitors in the telecommunications marketplace. 
We also believe that bankruptcy generally represents sufficient 
evidence of financial hardship to warrant granting a waiver. Our 
concerns in this regard are distinct from those taken into account by a 
bankruptcy court in setting the respective priorities of various types 
of obligations and discounting them where appropriate.\16\ Bankruptcy 
law does not limit our ability to forego collecting fees \17\ where the 
public interest warrants, and we therefore act independently of the 
bankruptcy law to this extent. On the other hand, we continue to 
believe that very large waivers would excessively impair our ability to 
comply with our statutory fee collection responsibilities. Even under 
existing policy, we might decline a request for such a waiver on a 
case-by-case basis.
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    \16\ Verizon notes that in our NPRM we stated with respect to 
fees in excess of the proposed cap: ``By leaving the ultimate 
disposition of these large fees to bankruptcy law, rather than 
waiving them, we believe that we would be giving due regard to our 
congressionally-mandated obligation to collect regulatory 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.'' Verizon 
contends that we should treat all fees from companies in bankruptcy 
consistent with this approach. We believe, however, that smaller 
fees warrant a different public interest balancing than larger fees 
and that we should continue to grant waivers for smaller amounts.
    \17\ See 11 U.S.C. 501, 502(a), 726 (claims have priority only 
upon creditor's timely filing of a proof of claim).
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    14. Additionally, we believe that a cap on waivers would be a 
useful means of implementing our policy concerns.\18\ We adopt a cap of 
$500,000 applicable both to bankrupt and other regulates asserting 
financial hardship, and we will amend the rules accordingly. We believe 
that granting fee waivers of greater than this amount would tend to 
have a negative impact on our ability to meet our statutory 
responsibilities. Fees owed above the cap would be subject to the 
provisions of the Bankruptcy Act in cases of bankruptcy. In other cases 
of asserted financial hardship, we may consider waiver, partial waiver, 
or deferral of fees above the cap on a case-by-case basis. As noted in 
the NPRM, in computing the cap we will aggregate all subsidiaries and 
other affiliated entities of a particular regulatee. Additionally, in 
computing the cap we will aggregate the total Section 8 application 
fees and Section 9 regulatory fees for a given fiscal year, including 
Section 9 fees due in a fiscal year but paid prior to the due date. The 
cap will apply to all waiver requests pending as of the effective date 
of the new rule. Adoption of the fee waiver cap does not limit our 
ability to grant or deny any current pending waiver requests. We 
anticipate that we will revisit the amount of the cap in subsequent fee 
rulemakings as warranted by changing conditions. We may also give 
further consideration to Verizon's proposals if our further experience 
suggests that this would be desirable.
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    \18\ The fee waiver cap we adopt is intended to limit the 
circumstances in which financial hardship will be considered as a 
basis for granting a fee waiver. It does not affect the procedures 
for processing waiver requests.
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v. Procedural Changes and Future Streamlining of the Regulatory Fee 
Assessment and Collection Process
    15. In our NPRM, we sought comment on a broad range of options for 
streamlining and otherwise improving the Commission's fee assessment 
and collection processes and procedures.\19\ While no comments were 
received with specific regards to future streamlining efforts, the 
Industrial Telecommunications Association, Inc. (``ITA'') objects to 
the Commission's proposal to discontinue its annual mailing of 
regulatory fee public notices to licensees. ITA states that small 
wireless and radio services providers, without adequate notification, 
may unintentionally miss the deadline for payment of fees.\20\ In his 
reply comment, Kenneth J. Brown, a retired broadcast engineer, contends 
that the annual mailing of regulatory fee public notices is a waste of 
federal resources with regard to large radio station group owners.\21\ 
Mr. Brown asserts that his former employer was able to obtain the 
public notice and payment information from the Commission's Internet 
site each year, long before public notice mailings for each of the 
employer's holdings arrived in the mail.\22\
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    \19\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2003, Notice of Proposed Rulemaking, 68 FR 17577, April 10, 
2003, paragraph 16.
    \20\ Comments of the Industrial Telecommunications Association, 
Inc., page 4.
    \21\ Reply Comments of Kenneth J. Brown, page 1.
    \22\ Reply Comments of Kenneth J. Brown, page 1.
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    16. In responding to ITA, we first note that the Commission's 
smallest regulatory fees--generally paid by smaller businesses and 
entities--are attached to Section 8 application fees and are paid 
upfront by entities at the time of their initial application or renewal 
of their multi-year license. Also, because governmental and public 
safety entities are exempt from regulatory fees, it is not necessary to 
give notice to these entities. In addition, each year the Regulatory 
Fee Schedule is established in a R&O promulgated by the Commission. 
This R&O, along with our regulatory fee public notices, are published 
in the Federal Register as a means of providing official public 
notice.\23\
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    \23\ Moreover, we will continue to mail public notices and other 
relevant materials free of charge to entities upon request.
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    17. As in previous years, we will also continue to make our 
regulatory fee public notices available on the FCC's Web site (http://www.fcc.gov/fees). In our NPRM, we proposed no longer to disseminate 
public notices through surface mail because of the wide availability of 
the Internet.\24\ We believe that today use of the Internet among the 
vast majority of businesses is ubiquitous and even those entities 
without computers or Internet access on their premises can still obtain 
the public notices via Internet access at their local public library. 
The Internet serves as the most convenient source for licensees to 
obtain regulatory fee information.
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    \24\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2003, Notice of Proposed Rulemaking, 68 FR 17577, April 10, 
2003, paragraph 13.
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    18. We also note that our initiative to mail regulatory fee 
assessment postcards to media services entities is underway, and that 
if this pilot program is successful we will consider expanding this 
method to other services.\25\ We iterate that our broader interest is 
to move towards disseminating actual regulatory fee bills to entities. 
To do so, we may consider various methods in the future, including ``e-
billing'' through the Internet.
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    \25\ For FY 2003, assessment postcards will be mailed to all 
media services entities (radio and television station licensees) 
with the exception of broadcast auxiliary station licensees. 
Entities receiving assessments will continue to pay their regulatory 
fees via the Commission's established procedures; i.e., payments 
must still be accompanied by FCC Form 159 and be submitted via the 
Commission's traditional methods for collection of regulatory fees 
each year.
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    19. For the reasons stated above, the Commission adopts its 
proposal no longer to disseminate regulatory fee public notices to the 
majority of its regulatees. An exception to this policy will be made 
for Interstate Telecommunication Service Providers (``ITSPs''), as the 
Commission will continue to generate and mail to them a customized 
Regulatory Fee Worksheet attached to the general regulatory fee public 
notice.

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vi. Commercial Mobile Radio Service (CMRS) Messaging
    20. Arch Wireless; Allied National Paging Association; American 
Association of Paging Carriers; Metrocall Holdings, Inc.; and WebLink 
Wireless I, L.P. (``Joint Commenters''), as joint commenters, urge the 
Commission to reduce the regulatory fee amount per subscriber, 
contending that because the messaging industry is not expanding, the 
Commission is probably expending fewer resources in the messaging 
industry than in other wireless services.\26\ Joint Commenters note 
that the Commission is required to relate its regulatory fee 
assessments to the cost of regulating each industry segment. American 
Mobile Telecommunications Association, Inc. (``AMTA'' or 
``Association'') also argues that a declining CMRS messaging services 
base should result in a decrease in the cost of regulation, and adds 
that spectrum-limited and geographically localized services such as 
CMRS messaging are very fee sensitive and therefore not able to pass on 
increases in costs very easily.\27\ In their reply comments, Blooston, 
Mordkofsky, Dickens, Duffy & Prendergast (``BMDD&P'') concurs that over 
the past several years, the Commission's level of regulatory and 
enforcement activity has probably decreased, and as a result, there 
should be a corresponding decrease in regulatory fees.\28\ Finally, the 
Industrial Telecommunications Association, Inc. (``ITA'') asks whether 
small SMR operators are still categorized in the CMRS Messaging Service 
fee category.\29\
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    \26\ Comments provided by Arch Wireless; Allied National Paging 
Association; American Association of Paging Carriers; Metrocall 
Holdings, Inc.; and WebLink Wireless I, L.P., pages 4-6.
    \27\ Comments by the American Mobile Telecommunications 
Association, Inc., pages 2 and 5.
    \28\ Comments by Blooston, Mordkofsky, Dickens, Duffy & 
Prendergast, page 4.
    \29\ Comments by the Industrial Telecommunications Association, 
Inc., page 4.
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    21. First, we confirm that with respect to SMR operators under the 
10 MHz bandwidth, the Commission continues to classify these operators 
as part of the CMRS Messaging fee category. Turning to the issue 
pertaining to the CMRS fee, a cogent argument has been presented that 
there has been a significant decline in CMRS Messaging units--from 40.8 
million in FY 1997 to 19.7 million in FY 2003--a decline of 51.7 
percent. Commenters have persuasively argued that this decline in 
subscribership may not be just a temporary phenomenon, but a more long-
lasting one, and because the messaging industry is spectrum-limited, 
geographically localized, and very cost sensitive, it is very difficult 
for this industry to pass on increases in costs to its subscribers.\30\ 
In these unique circumstances, we believe it is appropriate to provide 
a measure of relief.\31\
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    \30\ Comments from American Mobile Telecommunications 
Association, Inc., pages 2 and 5; comments from Arch Wireless 
Operating Company, Inc., Allied National Paging Association, 
American Association of Paging Carriers, Metrocall Holdings, Inc., 
and WebLink Wireless I, L.P. (collectively known as, ``Joint 
Commenters''), page 6.
    \31\ The Commission is completing design work on a new cost 
accounting system. As part of this process, we are evaluating 
methodologies for capturing data relevant to the regulatory fee 
setting process.
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    22. For the reasons stated above, we will not increase the 
regulatory fee of CMRS messaging services to $0.11, but will maintain 
it at its FY 2002 level of $.08 per subscriber unit.
vii. Broadcast Television Stations With Single Channel Allotments
    23. Sky Television, L.L.C. (``WSKY-TV'') urges the Commission to 
create an additional regulatory fee service category for single-channel 
National Television System Committee (NTSC) full-service broadcast 
television stations and to assess a fee for this category that is 50 
percent of the fee assessed against stations that have paired NTSC/DTV 
allotments. WSKY-TV states that because much of the Commission's 
current regulatory activities concerning the broadcast industry 
benefits only television stations with paired NTSC/DTV allotments, the 
costs of these activities should not be allocated to single-channel 
NTSC stations.
    24. For background, WSKY-TV is a relatively new broadcast station, 
having been licensed by the Commission on December 26, 2001 to operate 
on a single NTSC channel. This license condition is congruent with 
Commission policy in that initial DTV licenses were limited to full 
service broadcast television station permittees and licensees as of 
April 3, 1997,\32\ and that new NTSC permittees are not to be awarded a 
second channel to convert to DTV, but may convert to DTV on their 
single 6 MHz channel.\33\
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    \32\ Advanced Television Systems and Their Impact Upon Existing 
Television Broadcast Service, Fifth Report and Order, 12 FCC Rcd 
12809, 12816 (1997).
    \33\ Memorandum Opinion and Order on Reconsideration of the 
Fifth Report and Order, 13 FCC Rcd 6860, 6865 (1998).
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    25. The Commission's broadcast television regulatory fees are 
already designed to only capture the costs of analog broadcast 
activities. Although DTV licensees are subject to Section 8 application 
fees, the Commission does not yet assess Section 9 regulatory fees to 
recover the costs of the agency's DTV-related activities. Therefore, 
there is no need for the Commission to take action on this matter, 
because the analog-only regulatory fee category that WSKY-TV requests 
is already in effect.
viii. Amateur Radio Vanity Call Signs
    26. Several amateur radio licensees commented concerning the 
Commission's practice of assessing regulatory fees for amateur vanity 
call signs. Some commenters assert that no regulatory fees should be 
assessed for vanity call signs. Other commenters support the payment of 
a regulatory fee for the administrative costs incurred by the 
Commission when it initially issues a vanity call sign, but question 
why a regulatory fee is assessed when renewing the amateur vanity call 
sign. Of these commenters, some assert that the fee assessed for vanity 
call signs at the license renewal process should simply be eliminated; 
others propose that the fee should be eliminated and offset by a higher 
upfront fee assessed at the time of initial application. Finally, Keven 
Hemsley states that in instances where the Commission denies an 
applicant's request for a vanity call sign, the Commission should 
refund the money automatically rather than requiring the applicant to 
request a refund.\34\
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    \34\ Comments of Kevin Hemsley, page 1.
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    27. First, we address the issue of requests for refunds of 
regulatory fees. Our rules state that the Commission will not process 
refunds of regulatory fees without a written request from the 
applicant, permittee, licensee or agent in question.\35\ We uphold the 
requirement for a written request for a refund of regulatory fees. The 
written request serves as documentation when cross-referencing each 
unique file number that may be entitled to a refund. This documentation 
is essential for all applications, and particularly so for amateur 
radio vanity call sign applications, because filing trends indicate 
that some applicants file several vanity call sign applications per 
day, for several days on end. When one particular vanity call sign is 
granted to a filer, all of that filer's other applications are thereby 
dismissed. Certifying which fees are to be refunded for which dismissed 
applications would be much more labor intensive without the aid of any 
refund request documentation from prospective payees--thereby 
increasing the

[[Page 48452]]

Commission's costs in this service category and leading to higher 
regulatory fees here, as well. More importantly, the many processors of 
the myriad applications and filings submitted to the Commission's 
various Bureaus and Offices are not granted the authority to issue 
refunds without proper documentation. We cannot relax this filing 
requirement because maintaining a file of written requests for refunds 
that are paid to applicants is a sound accounting practice, and is 
necessary to ensure the integrity of the Commission's financial 
management and accounting systems.
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    \35\ See 47 CFR 1.1160(d) Refunds of regulatory fees.
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    28. Next, we address comments concerning our general regulatory fee 
assessment policy with regards to amateur radio vanity call signs. 
Pursuant to Section 9 of the Telecommunications Act of 1934, as 
amended, the assessment of regulatory fees is not applicable to amateur 
radio operator licenses.\36\ This exemption applies only to the actual 
license to operate, and does not extend to the vanity call sign 
component of Amateur Radio Service. Vanity call signs are voluntarily 
requested by licensees, and an entity that operates under a vanity call 
sign enjoys a value-added benefit not afforded to all licensees. 
Therefore, it is reasonable to conclude that those entities holding 
amateur vanity call signs should be assessed regulatory fees by the 
Commission to cover its processing and enforcement costs for making the 
vanity call sign service available.
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    \36\ See 47 U.S.C. 149(h).
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    29. Rather than assess entities a significant up-front vanity call 
sign fee that lasts the life of the call sign, the Commission chose 
instead to assess a nominal fee at the time of initial application and 
a continuance of the nominal fee at subsequent ten-year vanity call 
sign and license renewals. The Commission believes that this approach 
allows greater consumer access to vanity call signs. A high one-time-
only fee would be cost prohibitive for many entities wishing to obtain 
a vanity call sign. This approach is also consistent with the fact that 
the Commission incurs costs in managing each vanity call sign 
throughout its existence, not merely the first 10 years of its initial 
license period. This approach also makes the cost of holding any given 
vanity call sign equitable among all holders throughout the existence 
of each call sign, providing by example that holding a vanity call sign 
for 30 years will cost three times the amount to hold such a call sign 
for 10 years.\37\
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    \37\ Assuming a consistent time-value of money, and barring 
future Congressionally mandated changes in the amount of regulatory 
fees to be collected.
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    30. For the reasons detailed above, the Commission upholds its fee 
assessment policy for amateur radio vanity call signs and the payment 
methodology employed throughout the life-cycle of a vanity call sign 
authorization.

B. Procedures for Payment of Regulatory Fees

i. De minimis Fee Payment Liability
    31. Regulatees whose total regulatory fee liability, including all 
categories of fees for which payment is due by an entity, amounts to 
less than $10 are exempt from payment of regulatory fees in FY 2003.
ii. Standard Fee Calculations and Payment Dates
    32. As in prior years, the responsibility for payment of fees by 
service category is as follows:
    (a) Media services--fees must be paid for any license or permit 
issued on or before 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. However, 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.
    (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.\38\ For facilities-based common carriers 
with active international bearer circuits, the fee is based on the 
circuit count as of December 31, 2002. Also, as stated previously, 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.
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    \38\ 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 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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    33. 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

    34. 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 Sec.  1.1940(d) of 
the Commission's Rules. These administrative processing charges will be 
assessed on any delinquent regulatory fee, in addition to the 25 
percent late charge penalty. Partial 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 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.\39\
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    \39\ See 47 CFR 1.1164.
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III. Procedural Matters

    35. 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.\40\ It is ordered that the rule changes specified herein be 
adopted. It is further ordered that the rule changes made herein will 
become effective September 11, 2003, which is no less than 30 days 
after publication in

[[Page 48453]]

the Federal Register. A Final Regulatory Flexibility Analysis (FRFA) 
has been performed and is found in Attachment A, and it is ordered that 
the Commission's Consumer And Governmental Affairs Bureau, Reference 
Information Center, send this to the Chief Counsel for Advocacy of the 
Small Business Administration (SBA). Finally, it is ordered that this 
proceeding is terminated.
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    \40\ See 47 U.S.C. 154(i)-(j), 159, and 303(r).
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    36. Further information about this proceeding may be obtained by 
contacting the Fees Hotline at (888) 225-5322.

Federal Communications Commission.

Willaim F. Caton,
Deputy Secretary.

Attachment A.--Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\41\ the 
Commission prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities 
by the policies and rules and incorporated it into the Notice of 
Proposed Rulemaking, In the Matter of Assessment and Collection of 
Regulatory Fees for Fiscal Year 2003.\42\ Written public comments 
were sought on the FY 2003 fees proposal, including comments on the 
IRFA. This present Final Regulatory Flexibility Analysis (FRFA) 
conforms to the RFA.\43\
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    \41\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by 
the Contract With America Advancement Act of 1996, Public Law No. 
104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the 
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
    \42\ 68 FR 17577, April 10, 2003.
    \43\ 43 See 5 U.S.C. 604.
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I. Need for, and Objectives of, the Proposed Rules

    2. This rulemaking proceeding is initiated to amend the 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 revised Schedule 
of Regulatory Fees in the most efficient manner possible and without 
undue public burden.

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

    3. None.

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

    4. The RFA directs agencies to provide a description of and, 
where feasible, an estimate of the number of small entities that may 
be affected by the proposed rules, if adopted.\44\ The RFA defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' \45\ In addition, the term ``small business'' has 
the same meaning as the term ``small business concern'' under the 
Small Business Act.\46\ 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).\47\ 
Nationwide, there are approximately 22.4 million small 
businesses.\48\ In addition, a small organization is generally ``any 
not-for-profit enterprise which is independently owned and operated 
and is not dominant in its field.'' \49\ Nationwide, as of 1992, 
there were approximately 275,801 small organizations.\50\ The term 
``small governmental jurisdiction'' is defined as ``governments of 
cities, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' \51\ As 
of 1997, there were about 87,453 governmental jurisdictions in the 
United States.\52\ This number includes 39,044 county governments, 
municipalities, and townships, of which 37,546 (approximately 96.2%) 
have populations of fewer than 50,000, and of which 1,498 have 
populations of 50,000 or more. Thus we estimate the number of small 
governmental jurisdictions overall to be 84,098 or fewer.
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    \44\ 5 U.S.C. 603(b)(3).
    \45\ 5 U.S.C. 601(6).
    \46\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).
    \47\ Small Business Act, 15 U.S.C. 632 (1996).
    \48\ See SBA, Programs and Services, SBA pamphlet no. CO-0028, 
at page 40 (July 2002).
    \49\ 5 U.S.C. 601(4).
    \50\ U.S. Bureau of the Census, 1992 Economic Census, Table 6 
(special tabulation of data under contract to Office of Advocacy of 
the U.S. Small Business Administration).
    \51\ 5 U.S.C. 601(5).
    \52\ U.S. Census Bureau, Statistical Abstract of the United 
States: 2000, Section 9, pages 299-300, Tables 490 and 492.
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Cable Services or Systems

    5. Cable and Other Program Distribution. The SBA has developed a 
small business size standard for cable and other program 
distribution services, which includes all such companies generating 
$12.5 million or less in revenue annually.\53\ This category 
includes, among others, cable operators, direct broadcast satellite 
(``DBS'') services, home satellite dish (``HSD'') services, 
multipoint distribution services (``MDS''), multichannel multipoint 
distribution service (``MMDS''), Instructional Television Fixed 
Service (``ITFS''), local multipoint distribution service 
(``LMDS''), satellite master antenna television (``SMATV'') systems, 
and open video systems (``OVS''). According to the Census Bureau 
data, there are 1,311 total cable and other pay television service 
firms that operate throughout the year of which 1,180 have less than 
$10 million in revenue.\54\ We address below each service 
individually to provide a more precise estimate of small entities.
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    \53\ 13 CFR 121.201, NAICS code 517510 (formerly 513220). This 
NAICS code applies to all services listed in this paragraph.
    \54\ Economics and Statistics Administration, Bureau of Census, 
U.S. Department of Commerce, 1997 Economic Census, Subject Series--
Establishment and Firm Size, Information Sector 51, Table 4 at 50 
(2000). The amount of $10 million was used to estimate the number of 
small business firms because the relevant Census categories stopped 
at $9,999,999 and began at $10,000,000. No category for $12.5 
million existed. Thus, the number is as accurate as it is possible 
to calculate with the available information.
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    6. Cable Operators. The Commission has developed, with SBA's 
approval, our own definition of a small cable system operator for 
the purposes of rate regulation. Under the Commission's rules, a 
``small cable company'' is one serving fewer than 400,000 
subscribers nationwide.\55\ We last estimated that there were 1,439 
cable operators that qualified as small cable companies.\56\ 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 that may be affected by our action.
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    \55\ 47 CFR 76.901(e). The Commission developed this definition 
based on its determinations that a small cable system operator is 
one with annual revenues of $100 million or less. Sixth Report and 
Order and Eleventh Order on Reconsideration, 10 FCC Rcd. 7393 
(1995).
    \56\ 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, as amended, also contains a size 
standard for a small cable system operator, which is ``a cable 
operator that, directly or through an affiliate, serves in the 
aggregate fewer than 1% 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.'' \57\ The Commission 
has determined that there are 67,500,000 subscribers in the United 
States. Therefore, 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.\58\ Based 
on available data, we find that the number of cable operators 
serving 675,000 subscribers or less totals approximately 1,450.\59\ 
Although it seems certain that some of these cable system operators 
are affiliated with entities whose gross annual revenues exceed 
$250,000,000, we are unable at this time to estimate with greater 
precision the number of cable system operators that would qualify as 
small cable operators under the definition in the Communications 
Act.
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    \57\ 47 U.S.C. 543(m)(2).
    \58\ 47 CFR 76.1403(b).
    \59\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 
1996 (based on figures for Dec. 30, 1995).
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    8. Direct Broadcast Satellite (``DBS'') Service. Because DBS 
provides subscription services, DBS falls within the SBA-recognized 
definition of cable and other

[[Page 48454]]

program distribution services.\60\ This definition provides that a 
small entity is one with $12.5 million or less in annual 
receipts.\61\ There are four licensees of DBS services under Part 
100 of the Commission's Rules. Three of those licensees are 
currently operational. Two of the licensees that are operational 
have annual revenues that may be in excess of the threshold for a 
small business.\62\ The Commission, however, does not collect annual 
revenue data for DBS and, therefore, is unable to ascertain the 
number of small DBS licensees that could be impacted by these 
proposed rules. DBS service requires a great investment of capital 
for operation, and we acknowledge, despite the absence of specific 
data on this point, that there are entrants in this field that may 
not yet have generated $12.5 million in annual receipts, and 
therefore may be categorized as a small business, if independently 
owned and operated.
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    \60\ 13 CFR 121.201, NAICS code 517510 (formerly 513220).
    \61\ Id.
    \62\ Id.
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    9. Home Satellite Dish (``HSD'') Service. Because HSD provides 
subscription services, HSD falls within the SBA-recognized 
definition of cable and other program distribution services.\63\ 
This definition provides that a small entity is one with $12.5 
million or less in annual receipts.\64\ The market for HSD service 
is difficult to quantify.\65\ Indeed, the service itself bears 
little resemblance to other MVPDs. HSD owners have access to more 
than 265 channels of programming placed on C-band satellites by 
programmers for receipt and distribution by MVPDs, of which 115 
channels are scrambled and approximately 150 are unscrambled.\66\ 
HSD owners can watch unscrambled channels without paying a 
subscription fee. To receive scrambled channels, however, an HSD 
owner must purchase an integrated receiver-decoder from an equipment 
dealer and pay a subscription fee to an HSD programming package. 
Thus, HSD users include: (1) Viewers who subscribe to a packaged 
programming service, which affords them access to most of the same 
programming provided to subscribers of other MVPDs; (2) viewers who 
receive only non-subscription programming; and (3) viewers who 
receive satellite programming services illegally without 
subscribing. Because scrambled packages of programming are most 
specifically intended for retail consumers, these are the services 
most relevant to this discussion.\67\
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    \63\ 63 13 CFR 121.201, NAICS code 517510 (formerly 513220).
    \64\ Id.
    \65\ See, however, the census data for Cable and Other Program 
Distribution, supra.
    \66\ Annual Assessment of the Status of Competition in Markets 
for the Delivery of Video Programming, 12 FCC Rcd 4358, 4385 (1996) 
(``Third Annual Report'').
    \67\ Id. at 4385.
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    10. Satellite Master Antenna Television (``SMATV'') Systems. The 
SBA definition of small entities for cable and other program 
distribution services includes SMATV services and, thus, small 
entities are defined as all such companies generating $12.5 million 
or less in annual receipts.\68\ Industry sources estimate that 
approximately 5,200 SMATV operators were providing service as of 
December 1995.\69\ Other estimates indicate that SMATV operators 
serve approximately 1.5 million residential subscribers as of July 
2001.\70\ The best available estimates indicate that the largest 
SMATV operators serve between 15,000 and 55,000 subscribers each. 
Most SMATV operators serve approximately 3,000-4,000 customers. 
Because these operators are not rate regulated, they are not 
required to file financial data with the Commission. Furthermore, we 
are not aware of any privately published financial information 
regarding these operators. Based on the estimated number of 
operators and the estimated number of units served by the largest 
ten SMATVs, we believe that a substantial number of SMATV operators 
qualify as small entities.
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    \68\ 13 CFR 121.201, NAICS code 517510 (formerly 513220).
    \69\ See Third Annual Report, 12 FCC Rcd at 4403-4.
    \70\ See Annual Assessment of the Status of Competition in 
Markets for the Delivery of Video Programming, 17 FCC Rcd 1244, 1281 
(2001) (``Eighth Annual Report'').
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    11. Open Video Systems (``OVS''). Because OVS operators provide 
subscription services,\71\ OVS falls within the SBA-recognized 
definition of cable and other program distribution services.\72\ 
This definition provides that a small entity is one with $ 12.5 
million or less in annual receipts.\73\ The Commission has certified 
25 OVS operators with some now providing service. Affiliates of 
Residential Communications Network, Inc. (``RCN'') received approval 
to operate OVS systems in New York City, Boston, Washington, D.C. 
and other areas. RCN has sufficient revenues to assure us that they 
do not qualify as small business entities. Little financial 
information is available for the other entities authorized to 
provide OVS that are not yet operational. Given that other entities 
have been authorized to provide OVS service but have not yet begun 
to generate revenues, we conclude that at least some of the OVS 
operators qualify as small entities.
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    \71\ See 47 U.S.C. 573.
    \72\ 13 CFR 121.201, NAICS code 517510 (formerly 513220).
    \73\ Id.
---------------------------------------------------------------------------

    12. Electronics Equipment Manufacturers. Rules adopted in this 
proceeding could apply to manufacturers of DTV receiving equipment 
and other types of consumer electronics equipment. The SBA has 
developed definitions of small entity for manufacturers of audio and 
video equipment \74\ as well as radio and television broadcasting 
and wireless communications equipment.\75\ These categories both 
include all such companies employing 750 or fewer employees. The 
Commission has not developed a definition of small entities 
applicable to manufacturers of electronic equipment used by 
consumers, as compared to industrial use by television licensees and 
related businesses. Therefore, we will utilize the SBA definitions 
applicable to manufacturers of audio and visual equipment and radio 
and television broadcasting and wireless communications equipment, 
since these are the two closest NAICS Codes applicable to the 
consumer electronics equipment manufacturing industry. However, 
these NAICS categories are broad and specific figures are not 
available as to how many of these establishments manufacture 
consumer equipment. According to the SBA's regulations, an audio and 
visual equipment manufacturer must have 750 or fewer employees in 
order to qualify as a small business concern.\76\ Census Bureau data 
indicates that there are 554 U.S. establishments that manufacture 
audio and visual equipment, and that 542 of these establishments 
have fewer than 500 employees and would be classified as small 
entities.\77\ The remaining 12 establishments have 500 or more 
employees; however, we are unable to determine how many of those 
have fewer than 750 employees and therefore, also qualify as small 
entities under the SBA definition. Under the SBA's regulations, a 
radio and television broadcasting and wireless communications 
equipment manufacturer must also have 750 or fewer employees in 
order to qualify as a small business concern.\78\ Census Bureau data 
indicates that there 1,215 U.S. establishments that manufacture 
radio and television broadcasting and wireless communications 
equipment, and that 1,150 of these establishments have fewer than 
500 employees and would be classified as small entities.\79\ The 
remaining 65 establishments have 500 or more employees; however, we 
are unable to determine how many of those have fewer than 750 
employees and therefore, also qualify as small entities under the 
SBA definition. We therefore conclude that there are no more than 
542 small manufacturers of audio and visual electronics equipment 
and no more than 1,150 small manufacturers of radio and television 
broadcasting and wireless communications equipment for consumer/
household use.
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    \74\ 13 CFR 121.201, NAICS code 334310.
    \75\ 13 CFR 121.201, NAICS code 334220.
    \76\ 13 CFR 121.201, NAICS code 334310.
    \77\ Economics and Statistics Administration, Bureau of Census, 
U.S. Department of Commerce, 1997 Economic Census, Industry Series--
Manufacturing, Audio and Video Equipment Manufacturing, Table 4 at 9 
(1999). The amount of 500 employees was used to estimate the number 
of small business firms because the relevant Census categories 
stopped at 499 employees and began at 500 employees. No category for 
750 employees existed. Thus, the number is as accurate as it is 
possible to calculate with the available information.
    \78\ 13 CFR 121.201, NAICS code 334220.
    \79\ Economics and Statistics Administration, Bureau of Census, 
U.S. Department of Commerce, 1997 Economic Census, Industry Series--
Manufacturing, Radio and Television Broadcasting and Wireless 
Communications Equipment Manufacturing, Table 4 at 9 (1999). The 
amount of 500 employees was used to estimate the number of small 
business firms because the relevant Census categories stopped at 499 
employees and began at 500 employees. No category for 750 employees 
existed. Thus, the number is as accurate as it is possible to 
calculate with the available information.
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Wireline Competition Services and Related Entities

    13. In this section, we further describe and estimate the number 
of small entity licensees

[[Page 48455]]

and regulatees that may be affected by rules adopted herein. The 
most reliable source of information regarding the total number of 
certain common carriers and related providers nationwide, as well as 
the number of commercial wireless entities, appears to be the data 
that the Commission publishes in its Trends in Telephone Service 
report.\80\ The SBA has developed small business size standards for 
wireline and wireless small businesses with three commercial census 
categories of Wired Telecommunications Carriers,\81\ Paging,\82\ and 
Cellular and Other Wireless Telecommunications.\83\ Under these 
categories, a business is small if it has 1,500 or fewer employees. 
Below, using the above size standards and others, we discuss the 
total estimate numbers of small businesses that might be affected by 
our actions.
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    \80\ FCC, Wireline Competition Bureau, Industry Analysis and 
Technology Division, Trends in Telephone Service, Table 5.3 (May 
2002) (hereinafter Telephone Trends Report).
    \81\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) code 513310 (changed to 517110 in October of 2002).
    \82\ 13 CFR 121.201, NAICS code 513321 (changed to 517211 in 
October of 2002).
    \83\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October of 2002).
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    14. We have included small incumbent local exchange carriers 
(LECs) 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.'' \84\ 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.\85\ We have therefore included small 
incumbent LECs in this present RFA analysis, although we emphasize 
that this RFA action has no effect on the Commission's analyses and 
determinations in other, non-RFA contexts.
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    \84\ 5 U.S.C. 601(3).
    \85\ See Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to Chairman William E. Kennard, 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 5 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).
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    15. Wired Telecommunications Carriers. The SBA has developed a 
small business size standard for Wired Telecommunications Carriers, 
which consists of all such companies having 1,500 or fewer 
employees.\86\ According to Census Bureau data for 1997, there were 
2,225 firms in this category, total, that operated for the entire 
year.\87\ Of this total, 2,201 firms had employment of 999 or fewer 
employees, and an additional 24 firms had employment of 1,000 
employees or more.\88\ Thus, under this size standard, the majority 
of firms can be considered small.
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    \86\ 13 CFR 121.201, NAICS code 513310 (changed to 517110 in 
October 2002).
    \87\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 513310 (issued October 2000).
    \88\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is ``Firms with 1,000 
employees or more.''
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    16. Incumbent Local Exchange Carriers (ILECs). Neither the 
Commission nor the SBA has developed a size standard for small 
businesses specifically applicable to incumbent local exchange 
services. The closest applicable size standard under the SBA rules 
is for Wired Telecommunications Carriers. Under that size standard, 
such a business is small if it has 1,500 or fewer employees.\89\ 
According to Commission data, 1,329 carriers reported that they were 
engaged in the provision of local exchange services.\90\ Of these 
1,329 carriers, an estimated 1,024 have 1,500 or fewer employees and 
305 have more than 1,500 employees.\91\ Consequently, the Commission 
estimates that most providers of local exchange service are small 
businesses that may be affected by the rules and policies adopted 
herein.
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    \89\ 13 CFR 121.201, NAICS code 513310 (changed to 517110 in 
October of 2002).
    \90\ Telephone Trends Report at Table 5.3.
    \91\ Id.
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    17. Competitive Local Exchange Carriers (CLECs). Neither the 
Commission nor the SBA has developed a size standard for small 
businesses specifically applicable to providers of competitive local 
exchange services or to competitive access providers or to ``Other 
Local Exchange Carriers,'' all of which are discrete categories 
under which Telecommunications Relay Service (TRS) data are 
collected. The closest applicable size standard under SBA rules is 
for Wired Telecommunications Carriers. Under that size standard, 
such a business is small if it has 1,500 or fewer employees.\92\ 
According to Commission data,\93\ 532 companies reported that they 
were engaged in the provision of either competitive access provider 
services or competitive local exchange carrier services. Of these 
532 companies, an estimated 411 have 1,500 or fewer employees and 
121 have more than 1,500 employees.\94\ In addition, 55 carriers 
reported that they were ``Other Local Exchange Carriers.'' Of the 55 
``Other Local Exchange Carriers,'' an estimated 53 have 1,500 or 
fewer employees and two have more than 1,500 employees.\95\ 
Consequently, the Commission estimates that most providers of 
competitive local exchange service, competitive access providers, 
and ``Other Local Exchange Carriers'' are small entities that may be 
affected by the rules and policies adopted herein.
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    \92\ 13 CFR 121.201, NAICS code 513310 (changed to 517110 in 
October of 2002).
    \93\ Telephone Trends Report at Table 5.3.
    \94\ Id.
    \95\ Id.
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    18. Local Resellers. The SBA has developed a size standard for 
small businesses within the category of Telecommunications 
Resellers. Under that SBA size standard, such a business is small if 
it has 1,500 or fewer employees.\96\ According to Commission data, 
134 companies reported that they were engaged in the provision of 
local resale services.\97\ Of these 134 companies, an estimated 131 
they have 1,500 or fewer employees and three, alone or in 
combination with affiliates, have more than 1,500 employees.\98\ 
Consequently, the Commission estimates that there are 131 or fewer 
local resellers that are small entities that may be affected by the 
rules and policies proposed herein.
---------------------------------------------------------------------------

    \96\ 96 13 CFR 121.201, NAICS code 513330 (changed to 517310 in 
October of 2002).
    \97\ Telephone Trends Report at Table 5.3.
    \98\ Id.
---------------------------------------------------------------------------

    19. Toll Resellers. The SBA has developed a size standard for 
small businesses within the category of Telecommunications 
Resellers. Under that SBA size standard, such a business is small if 
it has 1,500 or fewer employees.\99\ According to Commission data, 
576 companies reported that they were engaged in the provision of 
toll resale services.\100\ Of these 576 companies, an estimated 538 
have 1,500 or fewer employees and 38, alone or in combination with 
affiliates, have more than 1,500 employees.\101\ Consequently, the 
Commission estimates that there are 538 or fewer toll resellers that 
are small entities that may be affected by the rules and policies 
proposed herein.
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    \99\ 13 CFR 121.201, NAICS code 513330 (changed to 517310 in 
October of 2002).
    \100\ Telephone Trends Report at Table 5.3.
    \101\ 101 Id.
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    20. Interexchange Carriers (IXCs). Neither the Commission nor 
the SBA has developed a size standard for small businesses 
specifically applicable to interexchange services. The closest 
applicable size standard under the SBA rules is for Wired 
Telecommunications Carriers. Under that size standard, such a 
business is small if it has 1,500 or fewer employees.\102\ According 
to Commission data, 229 companies reported that their primary 
telecommunications service activity was the provision of 
interexchange services.\103\ Of these 229 companies, an estimated 
181 have 1,500 or fewer employees and 48 have more than 1,500 
employees.\104\ Consequently, the Commission estimates that the 
majority of interexchange carriers are small entities that may be 
affected by the rules and policies adopted herein.
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    \102\ 13 CFR 121.201, NAICS code 513310 (changed to 517110 in 
October of 2002).
    \103\ Telephone Trends Report at Table 5.3.
    \104\ Id.
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    21. Payphone Service Providers (PSPs). Neither the Commission 
nor the SBA has developed a size standard for small businesses 
specifically applicable to payphone service providers. The closest 
applicable size standard under the SBA rules is for Wired 
Telecommunications Carriers. Under that size standard, such a 
business is small if it has 1,500 or fewer employees.\105\ According 
to Commission data, 936 companies reported that they were engaged in 
the provision of payphone services.\106\ Of these 936 payphone 
service providers, an estimated 933 have 1,500 or fewer employees

[[Page 48456]]

and three have more than 1,500 employees.\107\ Consequently, the 
Commission estimates that the majority of payphone service providers 
are small entities that may be affected by the rules and policies 
adopted herein.
---------------------------------------------------------------------------

    \105\ 13 CFR 121.201, NAICS code 513310 (changed to 517110 in 
October of 2002).
    \106\ Telephone Trends Report at Table 5.3.
    \107\ Id.
---------------------------------------------------------------------------

    22. Operator Service Providers (OSPs). Neither the Commission 
nor the SBA has developed a size standard for small businesses 
specifically applicable to operator service providers. The closest 
applicable size standard under the SBA rules is for Wired 
Telecommunications Carriers. Under that size standard, such a 
business is small if it has 1,500 or fewer employees.\108\ According 
to Commission data, 22 companies reported that they were engaged in 
the provision of operator services.\109\ Of these 22 companies, an 
estimated 20 have 1,500 or fewer employees and two have more than 
1,500 employees.\110\ Consequently, the Commission estimates that 
the majority of operator service providers are small entities that 
may be affected by the rules and policies adopted herein.
---------------------------------------------------------------------------

    \108\ 13 CFR 121.201, NAICS code 513310 (changed to 517110 in 
October of 2002).
    \109\ Telephone Trends Report at Table 5.3.
    \110\ Id.
---------------------------------------------------------------------------

    23. Prepaid Calling Card Providers. The SBA has developed a size 
standard for a small business within the category of 
Telecommunications Resellers. Under that SBA size standard, such a 
business is small if it has 1,500 or fewer employees.\111\ According 
to Commission data, 32 companies reported that they were engaged in 
the provision of prepaid calling cards.\112\ Of these 32 companies, 
an estimated 31 have 1,500 or fewer employees and one had more than 
1,500 employees.\113\ Consequently, the Commission estimates that 
the majority of prepaid calling card providers are small entities 
that may be affected by the rules and policies adopted herein.
---------------------------------------------------------------------------

    \111\ 13 CFR 121.201, NAICS code 513330 (changed to 517310 in 
October of 2002).
    \112\ Telephone Trends Report at Table 5.3.
    \113\ Id.
---------------------------------------------------------------------------

    24. Satellite Service Carriers. The SBA has developed a size 
standard for small businesses within the category of Satellite 
Telecommunications. Under that SBA size standard, such a business is 
small if it has 1,500 or fewer employees.\114\ According to 
Commission data, 31 carriers reported that they were engaged in the 
provision of satellite services.\115\ Of these 31 carriers, an 
estimated 25 have 1,500 or fewer employees and 6, alone or in 
combination with affiliates, have more than 1,500 employees.\116\ 
Consequently, the Commission estimates that there are 31 or fewer 
satellite service carriers which are small businesses that may be 
affected by the rules and policies proposed herein.
---------------------------------------------------------------------------

    \114\ 13 CFR 121.201, NAICS code 513340 (changed to 517410 in 
October of 2002).
    \115\ Telephone Trends Report at Table 5.3.
    \116\ Id.
---------------------------------------------------------------------------

    25. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a size standard for small businesses specifically 
applicable to ``Other Toll Carriers.'' This category includes toll 
carriers that do not fall within the categories of interexchange 
carriers, operator service providers, prepaid calling card 
providers, satellite service carriers, or toll resellers. The 
closest applicable size standard under the SBA rules is for Wired 
Telecommunications Carriers. Under that size standard, such a 
business is small if it has 1,500 or fewer employees.\117\ According 
to Commission data, 42 companies reported that their primary 
telecommunications service activity was the provision of ``Other 
Toll Services.'' \118\ Of these 42 companies, an estimated 37 have 
1,500 or fewer employees and 5 have more than 1,500 employees.\119\ 
Consequently, the Commission estimates that most ``Other Toll 
Carriers'' are small entities that may be affected by the rules and 
policies adopted herein.
---------------------------------------------------------------------------

    \117\ 13 CFR 121.201, NAICS code 513310 (changed to 517110 in 
October of 2002).
    \118\ Telephone Trends Report at Table 5.3.
    \119\ Id.
---------------------------------------------------------------------------

International Services

    26. 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).\120\ This definition 
provides that a small entity is expressed as one with $11.0 million 
or less in annual receipts.\121\ 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.\122\ The Census report does not provide more 
precise data.
---------------------------------------------------------------------------

    \120\ An exception is the Direct Broadcast Satellite (DBS) 
Service, infra.
    \121\ 13 CFR 121.201, NAICS codes 48531, 513322, 51334, and 
51339.
    \122\ 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).
---------------------------------------------------------------------------

    27. 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.
    28. 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.
    29. Fixed Satellite Transmit/Receive Earth Stations. There are 
approximately 3,149 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.
    30. Fixed Satellite Small Transmit/Receive Earth Stations. There 
are approximately 3,149 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.
    31. 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.
    32. 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.
    33. 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.
    34. 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.
    35. 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 that would 
constitute a small business under the SBA definition.
    36. Direct Broadcast Satellites. Because DBS provides 
subscription services, DBS falls within the SBA-recognized 
definition of ``Cable and Other Pay Television Services.''\123\ This 
definition provides that a small entity is one with $11.0 million or 
less in annual receipts.\124\ 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.
---------------------------------------------------------------------------

    \123\ 13 CFR 121.201, NAICS codes 51321 and 51322.
    \124\ Id.

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[[Page 48457]]

Media Services

    37. Television Broadcasting. The Small Business Administration 
defines a television broadcasting station that has no more than $12 
million in annual receipts as a small business.\125\ Business 
concerns included in this industry are those ``primarily engaged in 
broadcasting images together with sound.''\126\ According to 
Commission staff review of the BIA Publications, Inc. Master Access 
Television Analyzer Database as of May 16, 2003, about 814 of the 
1,220 commercial television stations in the United States have 
revenues of $12 million or less. We note, however, that, in 
assessing whether a business concern qualifies as small under the 
above definition, business (control) affiliations \127\ must be 
included. Our estimate, therefore, likely overstates the number of 
small entities that might be affected by our action, because the 
revenue figure on which it is based does not include or aggregate 
revenues from affiliated companies. There are also 2,127 low power 
television stations (LPTV).\128\ Given the nature of this service, 
we will presume that all LPTV licensees qualify as small entities 
under the SBA definition.
---------------------------------------------------------------------------

    \125\ See OMB, North American Industry Classification System: 
United States, 1997 at 509 (1997) (NAICS code 513120, which was 
changed to code 515120 in October 2002).
    \126\ OMB, North American Industry Classification System: United 
States, 1997, at 509 (1997) (NAICS code 513120, which was changed to 
code 51520 in October 2002). This category description continues, 
``These establishments operate television broadcasting studios and 
facilities for the programming and transmission of programs to the 
public. These establishments also produce or transmit visual 
programming to affiliated broadcast television stations, which in 
turn broadcast the programs to the public on a predetermined 
schedule. Programming may originate in their own studios, from an 
affiliated network, or from external sources.'' Separate census 
categories pertain to businesses primarily engaged in producing 
programming. See id. at 502-05, NAICS code 51210. Motion Picture and 
Video Production: code 512120, Motion Picture and Video 
Distribution, code 512191, Teleproduction and Other Post-Production 
Services, and code 512199, Other Motion Picture and Video 
Industries.
    \127\ ``Concerns are affiliates of each other when one concern 
controls or has the power to control the other or a third party or 
parties controls or has the power to control both.'' 13 CFR 
121.103(a)(1).
    \128\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2002.''
---------------------------------------------------------------------------

    38. In addition, an element of the definition of ``small 
business'' is that the entity not be dominant in its field of 
operation. We are unable at this time to define or quantify the 
criteria that would establish whether a specific television station 
is dominant in its field of operation. Accordingly, the estimate of 
small businesses to which rules may apply do not exclude any 
television station from the definition of a small business on this 
basis and are therefore over-inclusive to that extent. Also as 
noted, an additional element of the definition of ``small business'' 
is that the entity must be independently owned and operated. We note 
that it is difficult at times to assess these criteria in the 
context of media entities and our estimates of small businesses to 
which they apply may be over-inclusive to this extent.
    39. Radio Broadcasting. The SBA defines a radio broadcast entity 
that has $6 million or less in annual receipts as a small 
business.\129\ Business concerns included in this industry are those 
``primarily engaged in broadcasting aural programs by radio to the 
public.\130\ According to Commission staff review of the BIA 
Publications, Inc., Master Access Radio Analyzer Database, as of May 
16, 2003, about 10,427 of the 10,945 commercial radio stations in 
the United States have revenue of $6 million or less. We note, 
however, that many radio stations are affiliated with much larger 
corporations with much higher revenue, and that in assessing whether 
a business concern qualifies as small under the above definition, 
such business (control) affiliations \131\ are included.\132\ Our 
estimate, therefore likely overstates the number of small businesses 
that might be affected by our action.
---------------------------------------------------------------------------

    \129\ See OMB, North American Industry Classification System: 
United States, 1997, at 509 (1997) (Radio Stations) (NAICS code 
513111, which was changed to code 515112 in October 2002).
    \130\ Id.
    \131\ ``Concerns are affiliates of each other when one concern 
controls or has the power to control the other, or a third party or 
parties controls or has the power to control both.'' 13 CFR 
121.103(a)(1).
    \132\ ``SBA counts the receipts or employees of the concern 
whose size is at issue and those of all its domestic and foreign 
affiliates, regardless of whether the affiliates are organized for 
profit, in determining the concern's size.'' 13 CFR 121(a)(4).
---------------------------------------------------------------------------

    40. 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.\133\
---------------------------------------------------------------------------

    \133\ 13 CFR 121.201, NAICS codes 513111 and 513112.
---------------------------------------------------------------------------

    41. 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.\134\
---------------------------------------------------------------------------

    \134\ 15 U.S.C. 632.
---------------------------------------------------------------------------

Wireless and Commercial Mobile Services

    42. Wireless Service Providers. The SBA has developed a small 
business size standard for wireless firms within the two broad 
economic census categories of Paging \135\ or Cellular and Other 
Wireless Telecommunications.\136\ Under both of those SBA size 
standards, such a business is small if it has 1,500 or fewer 
employees.\137\ For the census category of Paging, Census Bureau 
data for 1997 show that there were 1320 firms in this category, 
total, that operated for the entire year.\138\ Of this total, 1303 
firms had employment of 999 or fewer employees, and an additional 17 
firms had employment of 1,000 employees or more.\139\ Thus, under 
this category and associated small business size standard, the great 
majority of firms can be considered small. For the census category 
of Cellular and Other Wireless Telecommunications firms, Census 
Bureau data for 1997 show that there were 977 firms in this 
category, total, that operated for the entire year.\140\ Of this 
total, 965 firms had employment of 999 or fewer employees, and an 
additional 12 firms had employment of 1,000 employees or more.\141\ 
Thus, under this second category and size standard, the great 
majority of firms can, again, be considered small.
---------------------------------------------------------------------------

    \135\ 13 CFR 121.201, NAICS code 513321 (changed to 517211 in 
October of 2002).
    \136\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October of 2002).
    \137\ Id.
    \138\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Employment Size of Firms Subject to Federal Income 
Tax: 1997,'' Table 5, NAICS code 513321 (issued Oct. 2000).
    \139\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is ``Firms with 1,000 
employees or more.''
    \140\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Employment Size of Firms Subject to Federal Income 
Tax: 1997,'' Table 5, NAICS code 513322 (issued Oct. 2000).
    \141\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is ``Firms with 1,000 
employees or more.''
---------------------------------------------------------------------------

    43. Broadband Personal Communications Service. The broadband 
Personal Communications Service (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 $40 
million or less in the three previous calendar years.\142\ 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.\143\ These

[[Page 48458]]

standards defining ``small entity'' in the context of broadband PCS 
auctions have been approved by the SBA.\144\ No small businesses 
within the SBA-approved small business size standard bid 
successfully for licenses in Blocks A and B. There were 90 winning 
bidders that qualified as small entities in the Block C auctions. A 
total of 93 small and very small business bidders won approximately 
40 percent of the 1,479 licenses for Blocks D, E, and F.\145\ On 
March 23, 1999, the Commission re-auctioned 347 C, D, E, and F Block 
licenses. There were 48 small business winning bidders. On January 
26, 2001, the Commission completed the auction of 422 C and F 
Broadband PCS licenses in Auction No. 35. Of the 35 winning bidders 
in this auction, 29 qualified as ``small'' or ``very small'' 
businesses. Based on this information, the Commission concludes that 
the number of small broadband PCS licensees will include the 90 
winning C Block bidders, the 93 qualifying bidders in the D, E, and 
F Block auctions, the 48 winning bidders in the 1999 re-auction, and 
the 29 winning bidders in the 2001 re-auction, for a total of 260 
small entity broadband PCS providers, as defined by the SBA small 
business size standards and the Commission's auction rules. 
Consequently, the Commission estimates that 260 broadband PCS 
providers are small entities that may be affected by the rules and 
policies adopted herein.
---------------------------------------------------------------------------

    \142\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, WT Docket No. 96-59, Report and Order, 
11 FCC Rcd 7824 paragraphs 57-60 (1996), 61 FR 33859 (July 1, 1996); 
see also 47 CFR 24.720(b).
    \143\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, WT Docket No. 96-59, Report and Order, 
11 FCC Rcd 7824 paragraphs 57-60 (1996), 61 FR 33859 (July 1, 1996).
    \144\ 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 paragraphs 115-17 (1994), 
59 FR 37566 (July 22, 1994).
    \145\ FCC News, Broadband PCS, D, E and F Block Auction Closes, 
No. 71744 (rel. Jan. 14, 1997). See also Amendment of the 
Commission's Rules Regarding Installment Payment Financing for 
Personal Communications Services (PCS) Licenses, WT Docket No. 97-
82, Second Report and Order, 12 FCC Rcd 16436 (1997), 62 FR 55348 
(Oct. 24, 1997).
---------------------------------------------------------------------------

    44. Narrowband Personal Communications Services. To date, two 
auctions of narrowband personal communications services (PCS) 
licenses have been conducted. For purposes of the two auctions that 
have already been held, ``small businesses'' were entities with 
average gross revenues for the prior three calendar years of $40 
million or less. Through these auctions, the Commission has awarded 
a total of 41 licenses, out of which 11 were obtained by small 
businesses. To ensure meaningful participation of small business 
entities in future auctions, the Commission has adopted a two-tiered 
small business size standard in the Narrowband PCS Second Report and 
Order.\146\ 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. The SBA has approved 
these small business size standards.\147\ In the future, the 
Commission will auction 459 licenses to serve Metropolitan Trading 
Areas (MTAs) and 408 response channel licenses. There is also one 
megahertz of narrowband PCS spectrum that has been held in reserve 
and that the Commission has not yet decided to release for 
licensing. The Commission cannot predict accurately the number of 
licenses that will be awarded to small entities in future actions. 
However, four of the 16 winning bidders in the two previous 
narrowband PCS auctions were small businesses, as that term was 
defined under the Commission's Rules. The Commission assumes, for 
purposes of this analysis that a large portion of the remaining 
narrowband PCS licenses will be awarded to small entities. The 
Commission also assumes that at least some small businesses will 
acquire narrowband PCS licenses by means of the Commission's 
partitioning and disaggregation rules.
---------------------------------------------------------------------------

    \146\ 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, 15 FCC RCD 10456 (2000), 65 
FR 35875 (June 6, 2000).
    \147\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, FCC, from 
Aida Alvarez, Administrator, SBA (Dec. 2, 1998).
---------------------------------------------------------------------------

    45. 220 MHz Radio Service--Phase I Licensees. The 220 MHz 
service has both Phase I and Phase II licenses. Phase I licensing 
was conducted by lotteries in 1992 and 1993. There are approximately 
1,515 such non-nationwide licensees and four nationwide licensees 
currently authorized to operate in the 220 MHz band. The Commission 
has not developed a small business size standard for 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 small business size standard under the SBA rules 
applicable to ``Cellular and Other Wireless Telecommunications'' 
companies. This standard provides that such a company is small if it 
employs no more than 1,500 persons.\148\ According to Census Bureau 
data for 1997, there were 977 firms in this category, total, that 
operated for the entire year.\149\ Of this total, 965 firms had 
employment of 999 or fewer employees, and an additional 12 firms had 
employment of 1,000 employees or more.\150\ If this general ratio 
continues in the context of Phase I 220 MHz licensees, the 
Commission estimates that nearly all such licensees are small 
businesses under the SBA's small business size standard.
---------------------------------------------------------------------------

    \148\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October of 2002).
    \149\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Employment Size of Firms Subject to Federal Income 
Tax: 1997,'' Table 5, NAICS code 513322 (issued Oct. 2000).
    \150\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is ``Firms with 1,000 
employees or more.''
---------------------------------------------------------------------------

    46. 220 MHz Radio Service--Phase II Licensees. The 220 MHz 
service has both Phase I and Phase II licenses. The Phase II 220 MHz 
service is a new service, and is subject to spectrum auctions. In 
the 220 MHz Third Report and Order, we adopted a small business size 
standard for ``small'' and ``very small'' businesses for purposes of 
determining their eligibility for special provisions such as bidding 
credits and installment payments.\151\ This small business size 
standard indicates that a ``small business'' is an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues not exceeding $15 million for the preceding three 
years.\152\ A ``very small business'' is 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. The SBA has approved these small business size 
standards.\153\ Auctions of Phase II licenses commenced on September 
15, 1998, and closed on October 22, 1998.\154\ In the first auction, 
908 licenses were auctioned in three different-sized geographic 
areas: three nationwide licenses, 30 Regional Economic Area Group 
(EAG) licenses, and 875 Economic Area (EA) licenses. Of the 908 
licenses auctioned, 693 were sold. Thirty-nine small businesses won 
licenses in the first 220 MHz auction. The second auction included 
225 licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies 
claiming small business status won 158 licenses.\155\
---------------------------------------------------------------------------

    \151\ 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-
70, at paras. 291-295 (1997), 62 FR 16004 (Apr. 3, 1997).
    \152\ Id., 12 FCC Rcd 10943, 11068-70, at paras. 291.
    \153\ See letter to D. Phythyon, Chief, Wireless 
Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, 
SBA (Jan. 6, 1998).
    \154\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' 14 FCC Rcd 605 (1998).
    \155\ Public Notice, ``Phase II 220 MHz Service Spectrum Auction 
Closes,'' 14 FCC Rcd 11218 (1999).
---------------------------------------------------------------------------

    47. 800 MHz and 900 MHz Specialized Mobile Radio Licensees. The 
Commission awards ``small entity'' and ``very small entity'' bidding 
credits in auctions for Specialized Mobile Radio (SMR) geographic 
area licenses in the 800 MHz and 900 MHz bands to firms that had 
revenues of no more than $15 million in each of the three previous 
calendar years, or that had revenues of no more than $3 million in 
each of the previous calendar years, respectively.\156\ These 
bidding credits apply to SMR providers in the 800 MHz and 900 MHz 
bands that either hold geographic area licenses or have obtained 
extended implementation authorizations. The Commission does not know 
how many firms provide 800 MHz or 900 MHz geographic area SMR 
service pursuant to extended implementation authorizations, nor how 
many of these providers have annual revenues of no more than $15 
million. One firm has over $15 million in revenues. The Commission 
assumes, for purposes here, that all of the remaining existing 
extended implementation authorizations are held by small entities, 
as that term is defined by the SBA. The Commission has held auctions 
for geographic area licenses in the 800 MHz and 900 MHz SMR bands. 
There were 60 winning

[[Page 48459]]

bidders that qualified as small or very small entities in the 900 
MHz SMR auctions. Of the 1,020 licenses won in the 900 MHz auction, 
bidders qualifying as small or very small entities won 263 licenses. 
In the 800 MHz auction, 38 of the 524 licenses won were won by small 
and very small entities. Consequently, the Commission estimates that 
there are 301 or fewer small entity SMR licensees in the 800 MHz and 
900 MHz bands that may be affected by the rules and policies 
adopted.
---------------------------------------------------------------------------

    \156\ 47 CFR 90.814(b)(1).
---------------------------------------------------------------------------

    48. Common Carrier Paging. In the Paging Third Report and Order, 
we developed a small business size standard for ``small businesses'' 
and ``very small businesses'' for purposes of determining their 
eligibility for special provisions such as bidding credits and 
installment payments.\157\ A ``small business'' is 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 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 Metropolitan Economic Area licenses 
commenced on February 24, 2000, and closed on March 2, 2000.\158\ Of 
the 985 licenses auctioned, 440 were sold. Fifty-seven companies 
claiming small business status won. At present, there are 
approximately 24,000 Private-Paging site-specific licenses and 
74,000 Common Carrier Paging licenses. According to Commission data, 
471 carriers reported that they were engaged in the provision of 
either paging and messaging services or other mobile services.\159\ 
Of those, the Commission estimates that 450 are small, under the SBA 
business size standard specifying that firms are small if they have 
1,500 or fewer employees.\160\
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    \157\ 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-
70, at paras. 291-295 (1997), 62 FR 16004 (Apr. 3, 1997).
    \158\ Revision of Part 22 and Part 90 of the Commission's Rules 
to Facilitate Future Development of Paging Systems, WT Docket No. 
96-18, Memorandum Opinion and Order on Reconsideration and Third 
Report and Order, 14 FCC Rcd 10030, at paras. 98 (1999), 64 FR 33762 
(June 24, 1999).
    \159\ Trends in Telephone Service at Table 5.3.
    \160\ Id. The SBA size standard is that of Paging, 13 CFR 
121.201, NAICS code 517211.
---------------------------------------------------------------------------

    49. 700 MHz Guard Band Licensees. In the 700 MHz Guard Band 
Order, we adopted a small business size standard for ``small 
businesses'' and ``very small businesses'' for purposes of 
determining their eligibility for special provisions such as bidding 
credits and installment payments.\161\ A ``small business'' is 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 an entity that, together with its affiliates and controlling 
principals, has average gross revenues that are not more than $3 
million for the preceding three years. An auction of 52 Major 
Economic Area (MEA) licenses commenced on September 6, 2000, and 
closed on September 21, 2000.\162\ Of the 104 licenses auctioned, 96 
licenses were sold to nine bidders. Five of these bidders were small 
businesses that won a total of 26 licenses. A second auction of 700 
MHz Guard Band licenses commenced on February 13, 2001 and closed on 
February 21, 2001. All eight of the licenses auctioned were sold to 
three bidders. One of these bidders was a small business that won a 
total of two licenses.\163\
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    \161\ See Service Rules for the 746-764 MHz Bands, and Revisions 
to part 27 of the Commission's Rules, WT Docket No. 99-168, Second 
Report and Order, 15 FCC Rcd 5299 (2000), 65 FR 17599 (Apr. 4, 
2000).
    \162\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Report No. WT 98-36 (Wireless Telecommunications Bureau, 
Oct. 23, 1998).
    \163\ Public Notice, ``700 MHz Guard Band Auction Closes,'' DA 
01-478 (rel. Feb. 22, 2001).
---------------------------------------------------------------------------

    50. Rural Radiotelephone Service. The Commission has not adopted 
a size standard for small entities specific to the Rural 
Radiotelephone Service.\164\ A significant subset of the Rural 
Radiotelephone Service is the Basic Exchange Telephone Radio Systems 
(BETRS).\165\ The Commission uses the SBA's size standard applicable 
to ``Cellular and Other Wireless Telecommunications,'' i.e., an 
entity employing no more than 1,500 persons.\166\ There are 
approximately 1,000 licensees in the Rural Radiotelephone Service, 
and the Commission estimates that almost all of them qualify as 
small entities under the SBA's size standard. Consequently, we 
estimate that there are 1,000 or fewer small entity licensees in the 
Rural Radiotelephone Service that may be affected by the rules and 
policies adopted herein.
---------------------------------------------------------------------------

    \164\ The service is defined in 22.99 of the Commission's Rules, 
47 CFR 22.99.
    \165\ BETRS is defined at 47 CFR 22.757, 22.759.
    \166\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October of 2002).
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    51. Air-Ground Radiotelephone Service. The Commission has not 
adopted a small business size standard specific to the Air-Ground 
Radiotelephone Service.\167\ We will use SBA's small business size 
standard applicable to ``Cellular and Other Wireless 
Telecommunications,'' i.e., an entity employing no more than 1,500 
persons.\168\ There are approximately 100 licensees in the Air-
Ground Radiotelephone Service, and we estimate that almost all of 
them qualify as small under the SBA small business size standard.
---------------------------------------------------------------------------

    \167\ The service is defined in 22.99 of the Commission's Rules, 
47 CFR 22.99.
    \168\ 13 CFR 121.201, NAICS codes 513322 (changed to 517212 in 
October of 2002).
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    52. Aviation and Marine Radio Services. Small businesses in the 
aviation and marine radio services use a very high frequency (VHF) 
marine or aircraft radio and, as appropriate, an emergency position-
indicating radio beacon (and/or radar) or an emergency locator 
transmitter. The Commission has not developed a small business size 
standard specifically applicable to these small businesses. For 
purposes of this analysis, the Commission uses the SBA small 
business size standard for the category ``Cellular and Other 
Telecommunications,'' which is 1,500 or fewer employees.\169\ 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 in this analysis, we estimate that there are up to 
approximately 712,000 licensees that are small businesses (or 
individuals) under the SBA standard. In addition, between December 
3, 1998 and December 14, 1998, the Commission held an auction of 42 
VHF Public Coast licenses in the 157.1875-157.4500 MHz (ship 
transmit) and 161.775-162.0125 MHz (coast transmit) bands. For 
purposes of the auction, the Commission defined a ``small'' business 
as an entity that, together with controlling interests and 
affiliates, has average gross revenues for the preceding three years 
not to exceed $15 million dollars. In addition, a ``very small'' 
business is one that, together with controlling interests and 
affiliates, has average gross revenues for the preceding three years 
not to exceed $3 million dollars.\170\ There are approximately 
10,672 licensees in the Marine Coast Service, and the Commission 
estimates that almost all of them qualify as ``small'' businesses 
under the above special small business size standards.
---------------------------------------------------------------------------

    \169\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October of 2002).
    \170\ Amendment of the Commission's Rules Concerning Maritime 
Communications, PR Docket No. 92-257, Third Report and Order and 
Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998), 63 FR 40059 
(July 27, 1998).
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    53. Fixed Microwave Services. Microwave services include common 
carrier,\171\ private-operational fixed,\172\ and broadcast 
auxiliary radio services.\173\ 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 created a size 
standard for a small business specifically with respect to fixed 
microwave services. For purposes of this analysis, the Commission 
uses the SBA size standard for the category ``Cellular and Other 
Telecommunications,'' which is 1,500 or fewer employees.\174\ The 
Commission does not have data specifying the number of these 
licensees that have more than 1,500 employees, and thus is unable at 
this time to

[[Page 48460]]

estimate with greater precision the number of fixed microwave 
service licensees that would qualify as small business concerns 
under the SBA's small business size standard. Consequently, the 
Commission estimates that there are up to 22,015 common carrier 
fixed microwave licensees and up to 61,670 private operational-fixed 
microwave licensees and broadcast auxiliary radio licensees in the 
microwave services that may be small and may be affected by the 
rules and policies adopted herein. We note, however, that the common 
carrier microwave fixed licensee category includes some large 
entities.
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    \171\ See 47 CFR 101, et seq. (formerly Part 21 of the 
Commission's Rules) for common carrier fixed microwave services 
(except Multipoint Distribution Service).
    \172\ 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.
    \173\ Auxiliary Microwave Service is governed by 47 CFR part 74. 
This service is 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 
television pickups, which relay signals from a remote location back 
to the studio.
    \174\ 13 CFR 121.201, NAICS codes 513322 (changed to 517212 in 
October of 2002).
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    54. Offshore Radiotelephone Service. This service operates on 
several UHF television broadcast channels that are not used for 
television broadcasting in the coastal areas of states bordering the 
Gulf of Mexico.\175\ There are presently approximately 55 licensees 
in this service. We are unable to estimate at this time the number 
of licensees that would qualify as small under the SBA's small 
business size standard for ``Cellular and Other Wireless 
Telecommunications'' services.\176\ Under that SBA small business 
size standard, a business is small if it has 1,500 or fewer 
employees.\177\
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    \175\ This service is governed by 47 CFR 22.1001-22.1037.
    \176\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October of 2002).
    \177\ Id.
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    55. Wireless Communications Services. This service can be used 
for fixed, mobile, radiolocation, and digital audio broadcasting 
satellite uses. The Commission established small business size 
standards for the wireless communications services (WCS) auction. A 
``small business'' is an entity with average gross revenues of $40 
million for each of the three preceding years, and a ``very small 
business'' is an entity with average gross revenues of $15 million 
for each of the three preceding years. The SBA has approved these 
small business size standards.\178\ The Commission auctioned 
geographic area licenses in the WCS service. In the auction, there 
were seven winning bidders that qualified as ``very small business'' 
entities, and one that qualified as a ``small business'' entity. We 
conclude that the number of geographic area WCS licensees affected 
by this analysis includes these eight entities.
---------------------------------------------------------------------------

    \178\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, FCC, from 
Aida Alvarez, Administrator, SBA (Dec. 2, 1998).
---------------------------------------------------------------------------

    56. 39 GHz Service. The Commission created a special small 
business size standard for 39 GHz licenses--an entity that has 
average gross revenues of $40 million or less in the three previous 
calendar years.\179\ An additional size standard for ``very small 
business'' is: an entity that, together with affiliates, has average 
gross revenues of not more than $15 million for the preceding three 
calendar years.\180\ The SBA has approved these small business size 
standards.\181\ 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. Consequently, the Commission 
estimates that 18 or fewer 39 GHz licensees are small entities that 
may be affected by the rules and policies adopted herein.
---------------------------------------------------------------------------

    \179\ See Amendment of the Commission's Rules Regarding the 
37.0-38.6 GHz and 38.6-40.0 GHz Bands, ET Docket No. 95-183, Report 
and Order, 12 FCC Rcd 18600 (1997), 63 FR 6079 (Feb. 6, 1998).
    \180\ Id.
    \181\ See Letter to Kathleen O'Brien Ham, Chief, Auctions and 
Industry Analysis Division, Wireless Telecommunications Bureau, FCC, 
from Aida Alvarez, Administrator, SBA (Feb. 4, 1998).
---------------------------------------------------------------------------

    57. Multipoint Distribution Service and Instructional Television 
Fixed Service. Multipoint Distribution Service (MDS) systems, often 
referred to as ``wireless cable,'' transmit video programming to 
subscribers using the microwave frequencies of the Multipoint 
Distribution Service (MDS) and Instructional Television Fixed 
Service (ITFS).\182\ In connection with the 1996 MDS auction, the 
Commission established a small business size standard as an entity 
that had annual average gross revenues of less than $40 million in 
the previous three calendar years.\183\ The MDS auctions resulted in 
67 successful bidders obtaining licensing opportunities for 493 
Basic Trading Areas (BTAs). Of the 67 auction winners, 61 met the 
definition of a small business. MDS also includes licensees of 
stations authorized prior to the auction. In addition, the SBA has 
developed a small business size standard for Cable and Other Program 
Distribution, which includes all such companies generating $12.5 
million or less in annual receipts.\184\ According to Census Bureau 
data for 1997, there were a total of 1,311 firms in this category, 
total, that had operated for the entire year.\185\ Of this total, 
1,180 firms had annual receipts of under $10 million and an 
additional 52 firms had receipts of $10 million or more but less 
than $25 million. Consequently, we estimate that the majority of 
providers in this service category are small businesses that may be 
affected by the rules and policies adopted herein. This SBA small 
business size standard also appears applicable to ITFS. There are 
presently 2,032 ITFS licensees. All but 100 of these licenses are 
held by educational institutions. Educational institutions are 
included in this analysis as small entities.\186\ Thus, we 
tentatively conclude that at least 1,932 licensees are small 
businesses.
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    \182\ 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, MM Docket No. 94-131 and PP Docket No. 93-253, 
Report and Order, 10 FCC Rcd 9589, 9593 paragraph 7 (1995), 60 FR 
36524 (July 17, 1995).
    \183\ 47 CFR 21.961(b)(1).
    \184\ 13 CFR 121.201, NAICS code 513220 (changed to 517510 in 
October of 2002).
    \185\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization)'', Table 4, NAICS code 513220 (issued October 2000).
    \186\ In addition, the term ``small entity'' within SBREFA 
applies to small organizations (nonprofits) and to small 
governmental jurisdictions (cities, counties, towns, townships, 
villages, school districts, and special districts with populations 
of less than 50,000). 5 U.S.C. 601(4)-(6). We do not collect annual 
revenue data on ITFS licensees.
---------------------------------------------------------------------------

    58. Local Multipoint Distribution Service. Local Multipoint 
Distribution Service (LMDS) is a fixed broadband point-to-multipoint 
microwave service that provides for two-way video 
telecommunications.\187\ 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 established a small 
business size standard for LMDS licenses as an entity that has 
average gross revenues of less than $40 million in the three 
previous calendar years.\188\ An additional small business size 
standard for ``very small business'' was added as an entity that, 
together with its affiliates, has average gross revenues of not more 
than $15 million for the preceding three calendar years.\189\ The 
SBA has approved these small business size standards in the context 
of LMDS auctions.\190\ There were 93 winning bidders that qualified 
as small entities in the LMDS auctions. A total of 93 small and very 
small business bidders won approximately 277 A Block licenses and 
387 B Block licenses. On March 27, 1999, the Commission re-auctioned 
161 licenses; there were 40 winning bidders. Based on this 
information, we conclude that the number of small LMDS licenses 
consists of 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.
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    \187\ See Local Multipoint Distribution Service, Second Report 
and Order, 12 FCC Rcd 12545 (1997), 62 FR 23148 (Apr. 29, 1997).
    \188\ Id.
    \189\ Id.
    \190\ See Letter to Dan Phythyon, Chief, Wireless 
Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, 
SBA (Jan. 6, 1998).
---------------------------------------------------------------------------

    59. 218-219 MHz Service. The first auction of 218-219 MHz 
spectrum resulted in 170 entities winning licenses for 594 
Metropolitan Statistical Area (MSA) licenses. Of the 594 licenses, 
557 were won by entities qualifying as a small business. For that 
auction, the small business size standard was 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.\191\ In the 218-219 MHz Report and Order and 
Memorandum Opinion and Order, we established a small business size 
standard for 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.\192\ 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.\193\ We cannot

[[Page 48461]]

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.
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    \191\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding, PP Docket No. 93-253, Fourth Report and 
Order, 9 FCC Rcd 2330 (1994), 59 FR 24947 (May 13, 1994).
    \192\ 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, 15 FCC Rcd 
1497 (1999), 64 FR 59656 (Nov. 3, 1999).
    \193\ Id.
---------------------------------------------------------------------------

    60. 24 GHz--Incumbent Licensees. This analysis may affect 
incumbent licensees who were relocated to the 24 GHz band from the 
18 GHz band, and applicants who wish to provide services in the 24 
GHz band. The applicable SBA small business size standard is that of 
``Cellular and Other Wireless Telecommunications'' companies. This 
category provides that such a company is small if it employs no more 
than 1,500 persons.\194\ According to Census Bureau data for 1997, 
there were 977 firms in this category, total, that operated for the 
entire year.\195\ Of this total, 965 firms had employment of 999 or 
fewer employees, and an additional 12 firms had employment of 1,000 
employees or more.\196\ Thus, under this size standard, the great 
majority of firms can be considered small. These broader census data 
notwithstanding, we believe that there are only two licensees in the 
24 GHz band that were relocated from the 18 GHz band, Teligent \197\ 
and TRW, Inc. It is our understanding that Teligent and its related 
companies have less than 1,500 employees, though this may change in 
the future. TRW is not a small entity. Thus, only one incumbent 
licensee in the 24 GHz band is a small business entity.
---------------------------------------------------------------------------

    \194\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October of 2002).
    \195\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Employment Size of Firms Subject to Federal Income 
Tax: 1997,'' Table 5, NAICS code 513322 (issued Oct. 2000).
    \196\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is ``Firms with 1,000 
employees or more.''
    \197\ Teligent acquired the DEMS licenses of FirstMark, the only 
licensee other than TRW in the 24 GHz band whose license has been 
modified to require relocation to the 24 GHz band.
---------------------------------------------------------------------------

    61. 24 GHz--Future Licensees. With respect to new applicants in 
the 24 GHz band, the small business size standard for ``small 
business'' is an entity that, together with controlling interests 
and affiliates, has average annual gross revenues for the three 
preceding years not in excess of $15 million.\198\ ``Very small 
business'' in the 24 GHz band is an entity that, together with 
controlling interests and affiliates, has average gross revenues not 
exceeding $3 million for the preceding three years.\199\ The SBA has 
approved these small business size standards.\200\ These size 
standards will apply to the future auction, if held.
---------------------------------------------------------------------------

    \198\ Amendments to Parts 1, 2, 87 and 101 of the Commission's 
Rules to License Fixed Services at 24 GHz, Report and Order, 15 FCC 
Rcd 16934, 16967 (2000), 65 FR 59350 (Oct. 5, 2000); see also 47 CFR 
101.538(a)(2).
    \199\ Id.
    \200\ See Letter to Margaret W. Wiener, Deputy Chief, Auctions 
and Industry Analysis Division, Wireless Telecommunications Bureau, 
FCC, from Gary M. Jackson, Assistant Administrator, SBA (July 28, 
2000).
---------------------------------------------------------------------------

    62. Internet Service Providers. While internet service providers 
(ISPs) are only indirectly affected by our present actions, and ISPs 
are therefore not formally included within this present RFA, we have 
addressed them informally to create a fuller record and to recognize 
their participation in this proceeding. The SBA has developed a 
small business size standard for Online Information Services, which 
consists of all such companies having $21 million or less in annual 
receipts.\201\ According to Census Bureau data for 1997, there were 
2,751 firms in this category, total, that operated for the entire 
year.\202\ Of this total, 2,659 firms had annual receipts of 
$9,999,999 or less, and an additional 67 had receipts of $10 million 
to $24,999,999.\203\ Thus, under this size standard, the great 
majority of firms can be considered small.
---------------------------------------------------------------------------

    \201\ 13 CFR 121.201, NAICS code 514191 (changed to 518111 in 
October of 2002).
    \202\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Receipts Size of Firms Subject to Federal Income Tax: 
1997,'' Table 4, NAICS code 514191 (issued October 2000).
    \203\ Id.
---------------------------------------------------------------------------

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

    63. 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.\204\ 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.
---------------------------------------------------------------------------

    \204\ 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.
---------------------------------------------------------------------------

    64. 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.
    65. 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.\205\ If payment is not received, new 
or pending applications may be dismissed, and existing 
authorizations may be subject to rescission.\206\ 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.\207\ Nonpayment of 
regulatory fees is a debt owed the United States pursuant to 31 
U.S.C. 3711 et seq., and the Debt Collection Improvement Act of 
1996, Public Law 194-134. Appropriate enforcement measures as well 
as administrative and judicial remedies, may be exercised by the 
Commission. Debts owed to the Commission may result in a person or 
entity being denied a federal loan or loan guarantee pending before 
another federal agency until such obligations are paid.\208\
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    \205\ 47 CFR 1.1164.
    \206\ 47 CFR 1.1164(c).
    \207\ Public Law 104-134, 110 Stat. 1321 (1996).
    \208\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

    66. 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.\209\ 
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.
---------------------------------------------------------------------------

    \209\ 47 CFR 1.1166.
---------------------------------------------------------------------------

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

    67. The RFA requires an agency to describe any significant 
alternatives that it has

[[Page 48462]]

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 III of this FRFA, supra, we have 
created procedures in which all fee-filing licensees and regulatees 
use a single form, FCC Form 159, and have described in plain 
language the general filing requirements. We have 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.
    68. The Omnibus Appropriations Act for FY 2003, Public Law 108-
7, 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.\210\ 
As noted, we have previously sought comment on the proposed 
methodology for implementing these statutory requirements and any 
other potential impact of these proposals on small entities.
---------------------------------------------------------------------------

    \210\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    69. With the use of actual cost accounting data for computation 
of regulatory fees, we found that some fees which were very small in 
previous years would have increased dramatically and would have a 
disproportionate impact on smaller entities. The methodology we are 
adopting in this Report and Order minimizes this impact by limiting 
the amount of increase and shifting costs to other services which, 
for the most part, are larger entities.
    70. Several categories of licensees and regulatees are exempt 
from payment of regulatory fees. See, e.g., footnote 204, supra.
    Report to Small Business Administration: The Commission will 
send a copy of this Report and Order, including a copy of the FRFA 
to the Chief Counsel for Advocacy of the Small Business 
Administration. The Report and Order and FRFA (or summaries thereof) 
will also be published in the Federal Register.
    Report to Congress: The Commission will send a copy of this 
Final Regulatory Flexibility Analysis, along with this Report and 
Order, in a report to Congress pursuant to the Congressional Review 
Act, 5 U.S.C. 801(a)(1)(A).

      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 to take into consideration the fact that
 certain variables that impact on the number of payment units cannot yet
 be estimated exactly. These include an unknown number of waivers and/or
     exemptions that may occur in FY 2003 and the fact that, in many
services, the number of actual licensees or station operators fluctuates
     from time to time due to economic, technical or other reasons.
Therefore, when we note, for example, that our estimated FY 2003 payment
units are based on FY 2002 actual payment units, it does not necessarily
 mean that our FY 2003 projection is exactly the same number as FY 2002.
 It means that we have either rounded the FY 2003 number or adjusted it
                slightly to account for these variables.]
------------------------------------------------------------------------
                                             Sources of payment unit
              Fee category                          estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, 218-219    Based on Wireless
 MHz, Marine (Ship & Coast), Aviation     Telecommunications Bureau
 (Aircraft & Ground), GMRS, Amateur       (WTB) projections of new
 Vanity Call Signs, Domestic Public       applications and renewals
 Fixed.                                   taking into consideration
                                          existing Commission licensee
                                          data bases. Aviation
                                          (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 (CARS).....  Based on Media Services Bureau
                                          (previously Cable Services
                                          Bureau) estimates.
Cable Television System Subscribers....  Based on Media Services Bureau
                                          (previously Cable Services
                                          Bureau), industry estimates of
                                          subscribership, and FY 2002
                                          payment units.
Interstate Telecommunication Service     Based on actual FY 2002
 Providers.                               interstate 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 Stations,     Based on International Bureau
 International Public Fixed Radio         estimates.
 Service.
------------------------------------------------------------------------


[[Page 48463]]


                                      Attachment C.--Calculation of FY 2003 Revenue Requirements and Pro-Rata Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 FY 2002     Pro-rated FY    Computed  new   Rounded  new   Expected  FY
                   Fee category                    FY 2003  Payment   Years      revenue     2003  revenue      FY 2003         FY 2003         2003
                                                         units                  estimate     requirement**  regulatory fee  regulatory fee     revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
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       159,740
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, C0, 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/Boosters........................             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    44,550,000
Interstate Telecommunication Service Providers...    63,000,000,000        1   101,693,547     125,050,006        0.001985         0.00199   125,370,000
CMRS Mobile Services (Cellular/Public Mobile)....       141,800,000        1    29,841,965      37,393,826            0.26            0.26    36,868,000
CMRS Messaging Services..........................        19,700,000        1     1,769,590       1,662,680            0.08            0.08     1,576,000
MDS/MMDS.........................................             3,611        1       775,848         954,041             264             265       956,915
LMDS.............................................               975        1       209,481         257,594             264             265       258,375
International Bearer Circuits....................         2,600,000        1     5,638,992       6,934,127            2.67            2.67     6,942,000
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     269,184,570  ..............  ..............   268,951,805
                                                  -------------------
    Total Revenue Requirement....................  ................  .......  ............     269,000,000  ..............  ..............   269,000,000
                                                  ===================
        Difference...............................  ................  .......  ............         184,570  ..............  ..............     (48,195)
--------------------------------------------------------------------------------------------------------------------------------------------------------
** 1.2297 factor applied based on the amount Congress designated for recovery through regulatory fees (Public Law 108-7 and 47 U.S.C. 159(a)(2)).


           Attachment D.--FY 2003 Schedule of Regulatory Fees
------------------------------------------------------------------------
                                                             Annual
                     Fee category                        regulatory fee
                                                           (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).                 10

[[Page 48464]]

 
Microwave (per license) (47 CFR part 101)............                 25
218-219 MHz (Formerly Interactive Video Data Service)                 30
 (per 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                     5
 part 95)............................................
Rural Radio (47 CFR part 22) (previously listed under                  5
 the Land Mobile category)...........................
PLMRS (Shared Use) (per license) (47 CFR part 90)....                  5
Aviation (Aircraft) (per station) (47 CFR part 87)...                  5
Aviation (Ground) (per license) (47 CFR part 87).....                 15
Amateur Vanity Call Signs (per call sign) (47 CFR                   1.63
 part 97)............................................
CMRS Mobile/Cellular Services (per unit) (47 CFR                     .26
 parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20,                 .08
 22, 24 and 90)......................................
Multipoint Distribution Services (MMDS/MDS) (per call                265
 sign) (47 CFR part 21)..............................
Local Multipoint Distribution Service (per call sign)                265
 (47 CFR, part 101)..................................
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                   365
 part 74)............................................
Broadcast Auxiliary (47 CFR part 74).................                 10
CARS (47 CFR part 78)................................                 90
Cable Television Systems (per subscriber) (47 CFR                    .66
 part 76)............................................
Interstate Telecommunication Service Providers (per               .00199
 revenue dollar).....................................
Earth Stations (47 CFR part 25)......................                210
Space Stations (per operational station in                       115,625
 geostationary orbit) (47 CFR part 25) also includes
 Direct Broadcast Satellite Service (per operational
 station) (47 CFR part 100)..........................
Space Stations (per operational system in non-                   108,375
 geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits (per active 64KB                      2.67
 circuit)............................................
International Public Fixed (per call sign) (47 CFR                 1,725
 part 23)............................................
International (HF) Broadcast (47 CFR part 73)........                730
------------------------------------------------------------------------


                                                          FY 2003 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                          FM Classes  A,  FM Classes  B,
                    Population served                       AM Class A      AM Class B      AM Class C      AM Class D        B1 & C3     C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................             600             450             325             400             475             625
25,001--75,000..........................................           1,200             900             475             600             950           1,100
75,001--150,000.........................................           1,800           1,125             650           1,000           1,300           2,025
150,001--500,000........................................           2,700           1,925             975           1,200           2,025           2,650
500,001--1,200,000......................................           3,900           2,925           1,625           2,000           3,200           3,900
1,200,001--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.\211\ 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

[[Page 48465]]

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

    \211\ 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.\212\ 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.
---------------------------------------------------------------------------

    \212\ 47 CFR 73.313.
---------------------------------------------------------------------------

Attachment F

Parties Filing Comments on the Notice of Proposed Rulemaking

Amateur Radio Vanity Call Signs

Charles P. Adkins
Daniel J. Berry
Robert Bingham
James Bridge
Tad Burik
Marc Colton
Kenneth Cooperstein
James Cour
Ralph D'Andrea
William J. Edwards
Paul M. Farrar
Dean K. Gibson
Chuck Gysi
Kevin Hemsley
Ralph Howes, Jr.
Steven Karty
Allan Kruger
Victor M. Magana
Doran S. Platt, III
Thomas Powell
Dennis G. Sarver
James B. Stafford
Jon Tandy
Frank A. Todd, IV
Jay Urish
Ira A. Wilner

American Mobile Telecommunications Association, Inc. (``AMTA'')
Arch Wireless; Allied National Paging Association; American 
Association of Paging Carriers; Metrocall Holdings, Inc.; and 
WebLink Wireless I, L.P. (``Joint Commenters'')
Bennet & Bennet, PLLC on Behalf of its LMDS Clients (``Bennet & 
Bennet'')
Blooston, Mordkofsky, Dickens, Duffy & Prendergast (``BMDDP'')
Helen Graham
Industrial Telecommunications Association, Inc. (``ITA'')
Sky Television (``WSKY-TV'')
Verizon, Inc. (``Verizon'')

Parties Filing Reply Comments

Blooston, Mordkofsky, Dickens, Duffy & Prendergast (``BMDDP'')
Kenneth J. Brown
Martin Group on Behalf of its LMDS Clients

Parties Filing a Notice of Oral Ex Parte Presentation

Arch Wireless, Inc.
Weblink Wireless I, L.P.
Metrocall Holdings, Inc.
American Association of Paging Carriers Filed by Wilkinson, Barker, 
Knauer, LLP

Concurring Statement of Commissioner Michael Copps

Re: Assessment and Collection of Regulatory Fees for Fiscal Year 
2003

    I respectfully concur in today's decision. I am concerned that 
the Commission still does not address when or how it should adjust 
the regulatory fees to take into account changes to the cost of 
regulating various services.
    In section 9 of the Communications Act, Congress directed the 
Commission to assess and collect regulatory fees. Congress further 
provided that the Commission shall develop accounting systems that 
allow it to modify the fee schedule to ensure that the fees are 
reasonably related to the benefits provided to the payor by the 
Commission's activities.
    This year, as in past years, the Commission merely relies on 
across-the-board proportionate increases from the previous year's 
schedule of fees. I am encouraged that the Commission intends to 
address certain problems with this methodology by committing to 
initiate a proceeding to consider the fee structure governing LMDS 
and other wireless services. I urge the Commission to undertake a 
more comprehensive review of its methodology to ensure that we 
comply fully with the requirements of section 9.

Concurring Statement of Commissioner Jonathan Adelstein

Re: Assessment and Collection of Regulatory Fees for Fiscal Year 
2003; MD Docket No. 03-83

    I can only concur with the Commission's decision to collect 
regulatory fees for fiscal year 2003 because I disagree with the 
methodology used to determine the actual fees assessed in this item.
    Section 9 of the Communications Act requires the Commission to 
assess and collect regulatory fees to recover the costs of 
regulatory activities performed by the Commission. It further 
requires that assessed fees be derived by determining the full-time 
equivalent number of employees (FTEs) performing these regulatory 
activities. Finally, while the Commission is able to make permitted 
amendments to the original Schedule of Regulatory Fees, Section 9(i) 
requires the Commission to do so based on an accounting system 
necessary to make the adjustments, which are authorized by 
subsection 9(b)(3).
    I am concerned that the Commission's approach to regulatory fees 
does not truly recover the costs for regulatory activities on a 
service by service basis. We essentially rely on repeated 
proportionate increases of the preceding year's schedule, adjusted 
to reflect increases or decreases in payment units. While the 
statute does specifically contemplate a proportionate increase, 
subsection 9(b)(1)(3) also requires the Commission to amend the 
Schedule of Regulatory Fees if it determines that the schedule 
requires amendment to comply with the requirement to assess fees by 
determining the FTEs performing these regulatory activities.
    While I understand the Commission has been considering a new 
cost-based accounting system for some time, it is unclear if that 
system will enable us to better comply with Section 9 of the Act. It 
is my hope that a new cost-based accounting system would more 
readily react to changes that have increased or decreased our 
regulatory activities on a service by service basis so that the 
appropriate costs are passed along to the proper services from year 
to year. I strongly encourage the Commission to take such steps over 
the upcoming year.
    Commercial Mobile Radio Service (CMRS) Messaging. I am pleased 
that through the policy of permitted amendments we have made the 
decision to not increase the regulatory fee for the CMRS messaging 
industry. However, I disagree with the specific rationale for 
reducing the fee. I believe that the fee should have been maintained 
or reduced based on the level of regulatory activities expended by 
Commission FTEs not on the economic status of the industry, as this 
item does.
    Indeed, many of our regulatees have suffered through difficult 
financial circumstances through the last several years. While the 
CMRS messaging industry may have suffered disproportionately, I 
would have preferred that we first assess the level of regulatory 
activity associated with the industry before making any adjustment 
based on an ostensible public interest determination. A cost-based 
accounting system may have permitted us to lower the CMRS messaging 
regulatory fee without even addressing the financial health of the 
messaging industry. Similarly, in the future, such a system may 
eliminate the disparities that result from automatic increases for 
all services based on a previous year's regulatory fee schedule, 
which we properly corrected here.
    Classification of Local Multipoint Distribution Service (LMDS). 
Finally, I want to highlight my significant concern with that 
portion of the item in which the Commission concludes that LMDS 
warrants a separate fee category from microwave and assesses LMDS 
licensees a fee of $265 per license. As previously stated, I believe 
that in assessing regulatory fees, we should first look at the 
number of FTEs performing the regulatory activities associated with 
that service, which was not done here.

[[Page 48466]]

    While I agree it is appropriate to separate the LMDS service 
from the Multipoint Distribution Service (MDS) regulatory fee 
category, I am unable to agree with the conclusion that the LMDS 
service requires different regulatory activities than those 
associated with other Part 101 Fixed Microwave Services. Indeed, two 
other services that share very similar service characteristics with 
LMDS--24 GHz and 39 GHz--are also regulated under Part 101 and 
subject to the microwave regulatory fees.
    Unfortunately, I am forced to concur to this portion because I 
understand that a decision to change the regulatory fee for LMDS at 
this time would make it impossible to both collect regulatory fees 
this fiscal year and provide Congress with 90 days notice of the 
amendment, as required by the Act. This item, however, does announce 
our plan to initiate a rulemaking that will closely look at the 
regulatory fees assessed against the microwave services including 
LMDS. I support this effort and strongly encourage the Commission to 
use this rulemaking as the foundation for a more comprehensive 
review of the methodology for assessing regulatory fees as outlined 
above.

Rule Changes

0
Part 1 of Title 47 of the Code of Federal Regulations is amended to 
read as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

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


0
2. Section 1.1117 is amended by adding paragraph (f) to read as 
follows:


Sec.  1.1117  Petitions and applications for review.

* * * * *
    (f) Petitions for waiver of a fee based on financial hardship will 
be subject to the provisions of paragraph 1.1166(e).

0
3. Section 1.1152 is revised to read as follows:


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

----------------------------------------------------------------------------------------------------------------
  Exclusive use services (per    Fee amount
           license)                 \1\                                    Address
----------------------------------------------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz
 and 220 MHz Local, Base
 Station & SMRS) (47 CFR, Part
 90)
    (a) New, Renew/Mod (FCC          $10.00  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     601 & 159).
    (b) New, Renew/Mod               $10.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601        $10.00  FCC, P.O. Box 358245, Pittsburgh, PA, 15251-5245.
     & 159).
    (d) Renewal Only                 $10.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
-------------------------------
                                               220 MHz Nationwide
----------------------------------------------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC           $5.00  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     601 & 159).
    (b) New, Renew/Mod                $5.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601         $5.00  FCC, P.O. Box 358245, Pittsburgh, PA, 15251-5245.
     & 159).
    (d) Renewal Only                  $5.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
2. Microwave (47 CFR Pt. 101)
 (Private):
    (a) New, Renew/Mod (FCC          $25.00  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     601 & 159).
    (b) New, Renew/Mod               $25.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601        $25.00  FCC, P.O. Box 358245, Pittsburgh, PA, 15251-5245.
     & 159).
    (d) Renewal Only                 $25.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
3. 218-219 MHz Service:
    (a) New, Renew/Mod (FCC          $30.00  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     601 & 159).
    (b) New, Renew/Mod               $30.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601        $30.00  FCC, P.O. Box 358245, Pittsburgh, PA, 15251-5245.
     & 159).
    (d) Renewal Only                 $30.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
4. Shared Use Services:
-------------------------------
                             Land Mobile (Frequencies Below 470 MHz--except 220 MHz)
----------------------------------------------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC           $5.00  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     601 & 159).
    (b) New, Renew/Mod                $5.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
-------------------------------
    (c) Renewal Only (FCC 601         $5.00  FCC, P.O. Box 358245, Pittsburgh, PA, 15251-5245.
     & 159).
    (d) Renewal Only                  $5.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
-------------------------------
                                          General Mobile Radio Service
----------------------------------------------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC           $5.00  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     605 & 159).
    (b) New, Renew/Mod                $5.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     605 & 159).
    (c) Renewal Only (FCC 605         $5.00  FCC, P.O. Box 358245, Pittsburgh, PA, 15251-5245.
     & 159).
    (d) Renewal Only                  $5.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     605 & 159).
-------------------------------
                                              Rural Radio (Part 22)
----------------------------------------------------------------------------------------------------------------
    (a) New, Additional               $5.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     Facility, Major Renew/Mod
     (Electronic Filing) (FCC
     601 & 159).
    (b) Renewal, Minor Renew/         $5.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     Mod (Electronic Filing)
     (FCC 601 & 159).
-------------------------------
                                                  Marine Coast
----------------------------------------------------------------------------------------------------------------
    (a) New Renewal/Mod (FCC         $10.00  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     601 & 159).
    (b) Renewal Only (FCC 601        $10.00  FCC, P.O. Box 358245, Pittsburgh, PA, 15251-5245.
     & 159).
    (c) Renewal Only                 $10.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
-------------------------------

[[Page 48467]]

 
                                                 Aviation Ground
----------------------------------------------------------------------------------------------------------------
    (a) New, Renewal/Mod (FCC        $15.00  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     601 & 159).
    (b) Renewal Only (FCC 601        $15.00  FCC, P.O. Box 358245, Pittsburgh, PA, 15251-5245.
     & 159).
    (c) Renewal Only                 $15.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     601 & 159).
-------------------------------
                                                   Marine Ship
----------------------------------------------------------------------------------------------------------------
    (a) New, Renewal/Mod (FCC        $15.00  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     605 & 159).
    (b) New, Renewal/Mod             $15.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     605 & 159).
    (c) Renewal Only (FCC 605        $15.00  FCC, P.O. Box 358245, Pittsburgh, PA, 15251-5245.
     & 159).
    (d) Renewal Only                 $15.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     605 & 159).
-------------------------------
                                                Aviation Aircraft
----------------------------------------------------------------------------------------------------------------
    (a) New, Renew/Mod (FCC           $5.00  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     605 & 159).
    (b) New, Renew/Mod                $5.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     605 & 159).
    (c) Renewal Only (FCC 605         $5.00  FCC, P.O. Box 358245, Pittsburgh, PA, 15251-5245.
     & 159).
    (d) Renewal Only                  $5.00  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     605 & 159).
5. Amateur Vanity Call Signs:
    (a) Initial or Renew (FCC         $1.63  FCC, P.O. Box 358130, Pittsburgh, PA, 15251-5130.
     605 & 159).
    (b) Initial or Renew              $1.63  FCC, P.O. Box 358994, Pittsburgh, PA, 15251-5994.
     (Electronic Filing) (FCC
     605 & 159).
6. CMRS Mobile Services (per       \2\ $.26  FCC, P.O. Box 358835, Pittsburgh, PA, 15251-5835.
 unit) (FCC 159).
7. CMRS Messaging Services         \3\ $.08  FCC, P.O. Box 358835, Pittsburgh, PA, 15251-5835.
 (per unit) (FCC 159).
8. Multipoint Distribution             $265  FCC, Multipoint, P.O. Box 358835, Pittsburgh, PA, 15251-5835.
 (Includes MMDS and MDS).
9. Local Multipoint                    $265  FCC, Multipoint, P.O. Box 358835, Pittsburgh, PA, 15251-5835.
 Distribution Service.
----------------------------------------------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire license term. The annual fee amount shown
  in this table (categories 1 through 5) must be multiplied by the 5- or 10-year license term, as appropriate,
  to arrive at the total amount of regulatory fees owed. Application fees may also apply as detailed in Sec.
  1.1102 of this chapter.
\2\ These are standard fees that are to be paid in accordance with section 1.1157(b).
\3\ These are standard fees that are to be paid in accordance with section 1.1157(b).


0
4. Section 1.1153 is revised to read as follows:


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

----------------------------------------------------------------------------------------------------------------
                                       Radio [AM and FM] (47 CFR, part 73)
-----------------------------------------------------------------------------------------------------------------
                                 Fee amount                                Address
----------------------------------------------------------------------------------------------------------------
1. AM Class A:
    <=25,000 population.......         $600  FCC, Radio, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    25,001-75,000 population..        1,200
    75,001-150,000 population.        1,800
    150,001-500,000 population        2,700
    500,001-1,200,000                 3,900
     population.
    1,200,001-3,000,000               6,000
     population.
    3,000,000              7,200
     population.
2. AM Class B:
    <=25,000 population.......          450
    25,001-75,000 population..          900
    75,001-150,000 population.        1,125
    150,001-500,000 population        1,925
    500,001-1,200,000                 2,925
     population.
    1,200,001-3,000,000               4,500
     population.
    3,000,000              5,400
     population.
3. AM Class C:
    <=25,000 population.......          325
    25,001-75,000 population..          475
    75,001-150,000 population.          650
    150,001-500,000 population          975
    500,001-1,200,000                 1,625
     population.
    1,200,001-3,000,000               2,450
     population.
    3,000,000              3,100
     population.
4. AM Class D:
    <=25,000 population.......          400
    25,001-75,000 population..          600
    75,001-150,000 population.        1,000
    150,001-500,000 population        1,200

[[Page 48468]]

 
    500,001-1,200,000                 2,000
     population.
    1,200,001-3,000,000               3,200
     population.
    3,000,000              4,000
     population.
5. AM Construction Permit.....          455
6. FM Classes A, B1 and C3:
    <=25,000 population.......          475
    25,001-75,000 population..          950
    75,001-150,000 population.        1,300
    150,001-500,000 population        2,025
    500,001-1,200,000                 3,200
     population.
    1,200,001-3,000,000               5,225
     population.
    3,000,000              6,650
     population.
7. FM Classes B, C, C0, C1 and
 C2:
    <=25,000 population.......          625
    25,001-75,000 population..        1,100
    75,001-150,000 population.        2,025
    150,001-500,000 population        2,650
    500,001-1,200,000                 3,900
     population.
    1,200,001-3,000,000               6,250
     population.
    3,000,000              8,125
     population.
8. FM Construction Permits....        1,850
-------------------------------
                                       TV (47 CFR, Part 73) VHF Commercial
----------------------------------------------------------------------------------------------------------------
1. Markets 1 thru 10..........       57,650  FCC, TV Branch, P.O. Box 358835, Pittsburgh, PA, 15251-5835.
2. Markets 11 thru 25.........       43,225
3. Markets 26 thru 50.........       30,125
4. Markets 51 thru 100........       18,075
5. Remaining Markets..........        4,450
6. Construction Permits.......        4,625
-------------------------------
                                                 UHF Commercial
----------------------------------------------------------------------------------------------------------------
1. Markets 1 thru 10..........       15,850  FCC, UHF Commercial, P.O. Box 358835, Pittsburgh, PA, 15251-5835.
2. Markets 11 thru 25.........       12,875
3. Markets 26 thru 50.........        8,075
4. Markets 51 thru 100........        4,975
5. Remaining Markets..........        1,425
6. Construction Permits.......        8,300
-------------------------------
                                          Satellite UHF/VHF Commercial
----------------------------------------------------------------------------------------------------------------
1. All Markets................        1,000  FCC Satellite TV, P.O. Box 358835, Pittsburgh, PA, 15251-5835.
2. Construction Permits.......          515
Low Power TV, TV/FM                     365  FCC, Low Power, P.O. Box 358835, Pittsburgh, PA 15251-5835.
 Translator, & TV/FM Booster
 (47 CFR Part 74).
Broadcast Auxiliary...........           10  FCC, Auxiliary, P.O. Box 358835, Pittsburgh, PA 15251-5835.
----------------------------------------------------------------------------------------------------------------


0
5. Section 1.1154 is revised to read as follows:


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

----------------------------------------------------------------------------------------------------------------
                                 Fee amount                                Address
----------------------------------------------------------------------------------------------------------------
                                                Radio facilities
----------------------------------------------------------------------------------------------------------------
1. Microwave (Domestic Public        $25.00  FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
 Fixed) (Electronic Filing)
 (FCC Form 601 & 159).
-------------------------------
                                                    Carriers
----------------------------------------------------------------------------------------------------------------
1. Interstate Telephone              .00199  FCC, Carriers, P.O. Box 358835, Pittsburgh, PA 15251-5835.
 Service Providers (per
 interstate and international
 end-user revenues) (see FCC
 Form 499-A).
----------------------------------------------------------------------------------------------------------------


[[Page 48469]]


0
6. Section 1.1155 is revised to read as follows:


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

----------------------------------------------------------------------------------------------------------------
                                     Fee amount                               Address
----------------------------------------------------------------------------------------------------------------
1. Cable Television Relay Service.          $90  FCC, Cable, P.O. Box 358835, Pittsburgh, PA 15251-5835.
2. Cable TV System (per                     .66  FCC, P.O. Box 358835, Pittsburgh, PA 15251-5835.
 subscriber).
----------------------------------------------------------------------------------------------------------------


0
7. Section 1.1156 is revised to read as follows:


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

----------------------------------------------------------------------------------------------------------------
                                 Fee amount                                 Address
----------------------------------------------------------------------------------------------------------------
                                                Radio Facilities
----------------------------------------------------------------------------------------------------------------
1. International (HF)                  $730  FCC, International, P.O. Box 358835, Pittsburgh, PA 15251-5835.
 Broadcast.
2. International Public Fixed.        1,725  FCC, International, P.O. Box 358835, Pittsburgh, PA 15251-5835.
Space Stations (Geostationary       115,625  FCC, Space Stations, P.O. Box 358835, Pittsburgh, PA 15251-5835.
 Orbit).
Space Stations (Non-                108,375  FCC, Space Stations, P.O. Box 358835, Pittsburgh, PA 15251-5835.
 Geostationary Orbit).
-------------------------------
                                                 Earth Stations
----------------------------------------------------------------------------------------------------------------
Transmit/Receive & Transmit             210  FCC, Earth Station, P.O. Box 358835, Pittsburgh, PA 15251-5835.
 Only (per authorization or
 registeration).
-------------------------------
                                                    Carriers
----------------------------------------------------------------------------------------------------------------
International Bearer Circuits          2.67  FCC, International, P.O. Box 358835, Pittsburgh, PA 15251-5835.
 (per active 64KB circuit or
 equivalent).
----------------------------------------------------------------------------------------------------------------


0
8. Section 1.1166 is amended by adding paragraph (e) to read as 
follows:


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

* * * * *
    (e) Petitions for waiver of a fee based on financial hardship, 
including bankruptcy, will not be granted, even if otherwise consistent 
with Commission policy, to the extent that the total regulatory and 
application fees for which waiver is sought exceeds $500,000 in any 
fiscal year, including regulatory fees due in any fiscal year, but paid 
prior to the due date. In computing this amount, the amounts owed by an 
entity and its subsidiaries and other affiliated entities will be 
aggregated. In cases where the claim of financial hardship is not based 
on bankruptcy, waiver, partial waiver, or deferral of fees above the 
$500,000 cap may be considered on a case-by-case basis.

[FR Doc. 03-20449 Filed 8-12-03; 8:45 am]
BILLING CODE 6712-03-P