[Federal Register Volume 71, Number 148 (Wednesday, August 2, 2006)]
[Rules and Regulations]
[Pages 43842-43873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-6582]



[[Page 43841]]

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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 2006; 
Final Rule

  Federal Register / Vol. 71, No. 148 / Wednesday, August 2, 2006 / 
Rules and Regulations  

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 06-68; FCC 06-102]


Assessment and Collection of Regulatory Fees for Fiscal Year 2006

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, we conclude a proceeding to collect 
$288,771,000 in regulatory fees for Fiscal Year (FY) 2006, pursuant to 
section 9 of the Communications Act of 1934, as amended (the Act), and 
an additional $10,000,000 as required by section 3013 of the Deficit 
Reduction Act (Pub. L. 109-171). 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.

DATES: Effective September 1, 2006.

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 12, 2006. Released: July 17, 2006.

    By the Commission: Commissioner Copps concurring and issuing a 
statement; Commissioner Adelstein approving in part, concurring in 
part, and issuing a statement.

Table of Contents

 
                                                               Paragraph
                           Heading                                No.
 
I. Introduction.............................................           1
II. Discussion..............................................           2
    A. FY 2006 Regulatory Fee Assessment Methodology........           4
        1. Development of FY 2006 Regulatory Fees...........           5
            a. Calculation of Revenue and Fee Requirements..           5
            b. Additional Adjustments to Payment Units......           6
        2. Commercial Mobile Radio Service (CMRS) Messaging            8
         Service............................................
        3. Regulatory Fees for Direct Broadcast Service               10
         (DBS) Providers and Cable Television Operators.....
        4. Broadband Radio Service (BRS)/Educational                  17
         Broadband Service (EBS)............................
        5. International Bearer Circuits....................          18
    B. Clarifications.......................................          19
        1. Clarification Regarding When Section 9 Regulatory          19
         Fees Are Collected.................................
        2. Effective Date of Payment of Multi-Year Wireless           20
         Fees...............................................
        3. Clarification Regarding Experimental Licenses....          23
    C. Administrative and Operational Issues................          24
        1. Mandatory Use of Fee Filer.......................          27
        2. Proposals for Notification and Collection of               28
         Regulatory Fees....................................
            a. Interstate Telecommunications Service                  30
             Providers (ITSPs)--Billed......................
            b. Satellite Space Station Licensees--Billed....          31
            c. Additional Service Categories for Billing or           33
             Assessing......................................
            d. Media Services Licensees--Assessed...........          34
            e. Commercial Mobile Radio Service (CMRS)                 38
             Cellular and Mobile Services--Assessed.........
            f. Cable Television Subscribers--Assessed.......          44
        3. Streamlined Regulatory Fee Payment Process for             48
         CMRS Providers.....................................
III. Procedural Matters.....................................          49
    A. Payment of Regulatory Fees...........................          49
        1. De Minimis Fee Payment Liability.................          49
        2. Standard Fee Calculations and Payment Dates......          50
        3. Limitations on Credit Card Transactions..........          51
    B. Enforcement..........................................          52
    C. Final Paperwork Reduction Act of 1995 Analysis.......          54
    D. Congressional Review Act Analysis....................          55
IV. Ordering Clauses Attachments............................          56
Attachment A--Final Regulatory Flexibility Analysis
Attachment B--Sources of Payment Unit Estimates for FY 2006
Attachment C--Calculation of Revenue Requirements and Pro-
 Rata Fees
Attachment D--FY 2006 Schedule of Regulatory Fees
Attachment E--Factors, Measurements, and Calculations That
 Determine Station Contours and Population Coverages
Attachment F--FY 2005 Schedule of Regulatory Fees
Attachment G--List of Commenters Rule Changes
 

I. Introduction

    1. In this Report and Order, we conclude a proceeding to collect 
$288,771,000 in regulatory fees, pursuant to section 9 of the 
Communications Act of 1934, as amended (the Act), and an additional 
$10,000,000 as required by section 3013 of the Deficit Reduction Act 
(Pub. L. 109-171). Section 9 regulatory fees are mandated by Congress 
and are collected to recover the regulatory costs associated with the 
Commission's enforcement, policy and rulemaking, user information, and 
international activities.\1\
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    \1\ 47 U.S.C. 159(a).
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II. Discussion

    2. We retain the established methods, policies, and procedures for 
calculating regulatory fees adopted by the Commission in prior years. 
We have found that this assessment methodology adopted in prior 
regulatory fee cycles has provided a satisfactory means for collecting 
the Commission's annual appropriations. In addition to the assessment 
methodology, the Commission retains the same administrative measures 
used for notification and assessment of regulatory fees as in previous 
years,

[[Page 43843]]

such as generating pre-completed regulatory fee assessment forms for 
certain regulatees.
    3. The Commission is obligated to collect $288,771,000 in 
regulatory fees during Fiscal Year (FY) 2006 to fund the Commission's 
operations. Consistent with our established practice, we plan to 
collect these regulatory fees in the August-September 2006 time frame 
in order to collect the required amount by the end of the fiscal year. 
In addition to the $288,771,000 amount above, the Commission is 
required to assess and collect an additional $10,000,000 to contribute 
toward the Nation's debt reduction in FY 2006.\2\ In our FY 2006 Notice 
of Proposed Rulemaking (NPRM), we sought comment regarding how the 
Commission should implement this provision.\3\ Specifically, we asked 
whether the Commission should assess the additional $10,000,000 on 
application fees, on regulatory fees, or use some other form of 
assessment. We received no comment on this matter. Additionally, the 
legislative history of the act provides no guidance as to how Congress 
intends the Commission to collect these debt reduction funds. We 
believe that collecting the mandatory $10,000,000 debt reduction 
contribution in conjunction with our FY 2006 schedule of section 9 
regulatory fees will ensure the most equitable and timely collection of 
such fees. Therefore, in addition to the amount mandated by Congress in 
the appropriations law ($288,771,000), our FY 2006 schedule of section 
9 regulatory fees includes an additional $10,000,000 allocated across 
all service categories. Hereafter, in this Report and Order, we will 
refer to the total $298,771,000 as regulatory fees.
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    \2\ Section 3013 of Public Law 109-171 reads as follows, ``In 
addition to any fees assessed under the Communications Act of 1934 
(47 U.S.C. 151 et seq.), the Federal Communications Commission shall 
assess extraordinary fees for licenses in the aggregate amount of 
$10,000,000, which shall be deposited in the Treasury during fiscal 
year 2006 as offsetting receipts.''
    \3\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, Notice of Proposed Rulemaking, 71 FR 17410 at para. 3 
(April 6, 2006) (FY 2006 NPRM).
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A. FY 2006 Regulatory Fee Assessment Methodology

    4. On March 27, 2006, we released the FY 2006 NPRM. As noted in the 
FY 2006 NPRM, the section 9 regulatory fee proceeding is an annual 
process intended to ensure the Commission collects the amounts required 
by Congress. In the NPRM, we proposed to largely retain the section 9 
regulatory fee methodology used in the prior fiscal year. Only six 
comments and two reply comments were filed. We address our conclusions 
below.
1. Development of FY 2006 Regulatory Fees
a. Calculation of Revenue and Fee Requirements
    5. In our FY 2006 regulatory fee assessment, we use the same 
section 9 regulatory fee assessment methodology that we adopted in FY 
2005. Each fiscal year, the Commission proportionally allocates the 
total amount that must be collected via section 9 regulatory fees. The 
results of FY 2006 regulatory fee assessment methodology (including a 
comparison to the prior year's results) are contained in Attachment C. 
For FY 2006, the receipts collected through FY 2005 regulatory fees 
will be the basis for calculating the amount the Commission must 
collect in FY 2006. To collect the $298,771,000 million required by 
law, we first adjust the FY 2005 amount upward by 6.67 percent.\4\ 
Consistent with past practice, we then divide the FY 2006 amount by the 
number of payment units in each fee category to determine the unit 
fee.\5\ As in prior years, for cases involving small fees (e.g., 
licenses that are renewed over a multiyear term), we divide the 
resulting unit fee by the term of the license, and then round these 
unit fees consistent with the requirements of section 9(b)(2).
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    \4\ We were required to collect $280,098,000 in FY 2005. We are 
required to collect $298,771,000 in FY 2006, which is an increase of 
approximately 6.67 percent. Note that the required increase of 
approximately 6.67 percent in FY 2006 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 
estimated payment units in a service category, the actual fee for 
individual service categories is sometimes increased by a number 
other than 6.67 percent. For example, in industries where the number 
of units is declining and the expected revenue is increasing, the 
impact of the fee increase may be greater.
    \5\ In many instances, the regulatory 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). The payment unit is the measure upon which the fee is 
based, such as a licensee, regulatee, subscriber fee, etc.
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b. Additional Adjustments To Payment Units
    6. In calculating the FY 2006 regulatory fees listed in Attachment 
D, we further adjusted the FY 2005 list of payment units (see 
Attachment B for sources of payment units) based upon licensee 
databases and industry and trade group projections to produce the most 
up-to-date and equitable regulatory fee calculations possible. Whenever 
possible, we verified these estimates from multiple sources to ensure 
accuracy. Sources include Commission licensee databases, prior year 
payment records, and/or industry and trade association projections.\6\ 
Where appropriate, we adjusted and/or rounded our final estimates to 
take into consideration variables that may impact the number of payment 
units, such as waivers and/or exemptions that may be filed in FY 2006, 
and fluctuations in the number of licensees or station operators due to 
economic, technical, or other reasons. Therefore, when we state that 
our estimated FY 2006 payment units are based on FY 2005 actual payment 
units, the number may have been rounded or adjusted slightly to account 
for these variables.
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    \6\ The databases we consulted include, but are not limited to, 
the Commission's Universal Licensing System (ULS), International 
Bureau Filing System (IBFS), and Consolidated Database System 
(CDBS). We also consulted industry sources including, but not 
limited to, Television & Cable Factbook by Warren Publishing, Inc. 
and the Broadcasting and Cable Yearbook by Reed Elsevier, Inc., as 
well as reports generated within the Commission such as the Wireline 
Competition Bureau's Trends in Telephone Service and the Wireless 
Telecommunications Bureau's Numbering Resource Utilization Forecast 
and Annual CMRS Competition Report. For additional information on 
source material, see Attachment B.
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    7. We consider additional factors in determining regulatory fees 
for AM and FM radio stations. These factors are facility attributes and 
the population served by the radio station. The calculation of the 
population served is determined by coupling current U.S. Census Bureau 
data with technical and engineering data, as detailed in Attachment E. 
Consequently, the population served, as well as the class and type of 
service (AM or FM), determines the regulatory fee amount to be paid for 
radio stations.\7\
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    \7\ In addition, beginning in FY 2005, we established a 
procedure by which we set regulatory fees for AM and FM radio and 
VHF and UHF television Construction Permits each year at an amount 
no higher than the lowest regulatory fee in that respective service 
category. For example, the regulatory fee for a Construction Permit 
for an AM radio station will never be more than the regulatory fee 
for an AM Class C radio station serving a population of less than 
25,000.
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2. Commercial Mobile Radio Service (CMRS) Messaging Service
    8. In the FY 2006 NPRM, we proposed to continue our policy of 
maintaining the CMRS Messaging Service regulatory fee at the rate 
originally calculated in FY 2003 (i.e., $0.08 per subscriber), noting 
that the subscriber base in this industry has declined more than 75% 
from 40.8 million to 10.1 million from

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FY 1997 to FY 2005.\8\ We received supporting comments from three 
entities and no opposing comments.\9\ All commenters endorse, at a 
minimum, maintaining the fee at $0.08 per subscriber. BloostonLaw urges 
the Commission to reduce the fee to $0.04 per subscriber, citing the 
paging industry's declining subscriber base and increasing regulatory 
obligations and expenditures that have been imposed on this industry 
since the inception of the section 9 regulatory fee program.\10\
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    \8\ See FY 2006 NPRM, para. 7.
    \9\ Comments received from the American Association of Paging 
Carriers (AAPC), the law firm of Blooston, Mordkofsky, Dickens, 
Duffy & Pendergast, LLP (BloostonLaw), and USA Mobility, Inc.
    \10\ BloostonLaw notes the paging industry's requirement to 
contribute to the Universal Service Fund, the Telecommunications 
Relay Service (TRS) fund, the Local Number Portability (LNP) fund, 
and the North American Numbering Plan Administration (NANPA) fund. 
See BloostonLaw Comments at 3.
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    9. We are cognizant of the regulatory obligations cited by 
BloostonLaw. The Commission has already addressed the hardships 
suffered by the CMRS messaging industry by freezing the fee, which 
would otherwise have risen significantly.\11\ Moreover, the obligations 
cited by BloostonLaw are associated with significant regulatory costs 
and benefits that warrant increasing the fee. Therefore, we are not 
persuaded to reduce the regulatory fee amount. In consideration of the 
financial hardship that could be caused by increasing the fee 
(shrinking profit margins, additional loss of subscribers, reduced 
revenue, etc.) for this service category, we adopt our proposal to 
maintain the CMRS Messaging Service regulatory fee this fiscal year at 
$0.08 per subscriber.
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    \11\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2005, Report and Order and Order on Reconsideration, 20 FCC Rcd 
12259, 12264 para. 5 (2005) (FY 2005 R&O and Order on 
Reconsideration).
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3. Regulatory Fees for Direct Broadcast Service (DBS) Providers and 
Cable Television Operators
    10. In our FY 2005 regulatory fee proceeding, the National Cable 
and Telecommunications Association (NCTA) and American Cable 
Association (ACA) submitted comments \12\ proposing that the Commission 
adopt the same per-subscriber assessment for DBS operators that applies 
to cable television operators.\13\ DirecTV, Inc. and Echostar Satellite 
L.L.C. (DirecTV and Echostar), in joint reply comments, argued that the 
cable operators failed to make the required showing to satisfy section 
9(b)(3) of the Act for changes to the Commission's regulatory fee 
structure, specifically, ``In making such amendments, the Commission 
shall add, delete, or reclassify services in the Schedule to reflect 
additions, deletions, or changes in the nature of its services as a 
consequence of Commission rulemaking proceedings or changes in law.'' 
\14\ We agreed that the cable commenters did not satisfy section 9 
requirements.
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    \12\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2005, Report and Order and Order on Reconsideration, 20 FCC Rcd 
12259, 12264 para. 10 (2005) (FY 2005 R&O and Order on Recon). See 
also FY 2005 Comments of NCTA and FY 2005 Comments of ACA.
    \13\ Since the inception of the Commission's regulatory fee 
program, we have assessed section 9 regulatory fees on cable 
operators using a per-subscriber approach, which is consistent with 
the original (1994) statute. By contrast, section 9 regulatory fee 
assessments for DBS providers are based on a per-license approach, 
which is also consistent with the Commission's permitted amendment 
to the statute that took place in 1996.
    \14\ 47 U.S.C. 159(b)(3). In addition, 47 U.S.C. 159(b)(4) 
requires that if the Commission revises its fee schedule based upon 
Commission rulemaking proceedings or changes in law, it must provide 
Congress with 90 days notice before such an amendment of the fee 
schedule can be implemented. See 47 U.S.C. 159(b)(4).
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    11. As a procedural matter, we also found that, because the 
comments raised issues not contemplated in the FY 2005 NPRM, we had not 
provided sufficient notice for a change to the fee methodology for DBS 
operators.\15\ Therefore, we stated that we would seek further 
information on this issue in our FY 2006 regulatory fee proceeding in 
order to fully explore whether there is a legal basis for such a 
change, and to analyze the impact of any change in the methodology used 
to assess fees both for DBS providers and cable television 
operators.\16\
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    \15\ See FY 2005 R&O and Order on Recon, 20 FCC Rcd 12259, 12264 
para. 10.
    \16\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, Notice of Proposed Rulemaking, 71 FR 17410 at para. 8 
(April 6, 2006) (FY 2006 NPRM).
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    12. In the FY 2006 NPRM, we sought comment on the appropriate 
regulatory fee structure for both cable operators and DBS 
providers.\17\ We asked that commenters proposing a fee change identify 
the Commission rulemaking proceeding(s) or change(s) in law that they 
believe warrant a modification of the fee assessment schedule. NCTA, 
ACA, and the DBS industry again commented on this issue in FY 2006. 
While many of the economic, competition, and perceived equity arguments 
presented in these comments repeated those made in FY 2005, they also 
provided additional information regarding changes in law and subsequent 
Commission rulemakings.
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    \17\ Id.
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    13. NCTA argues that the Commission should modify the structure for 
assessing DBS regulatory fees. In particular, NCTA argues that DBS 
should be assessed on a per-subscriber basis, and that cable regulatory 
fees should be reduced. NCTA argues that the Commission's per-license 
fee scheme for DBS rests on an out-dated and faulty premise that the 
Commission's regulatory responsibilities with respect to DBS are 
unrelated to the number of end users of satellite services.\18\ It 
asserts that the regulatory landscape for Multichannel Video 
Programming Distributor (MVPD) has changed significantly in the past 10 
years, stating that the Commission's regulatory responsibilities with 
respect to the cable industry have substantially diminished, while its 
responsibilities with respect to the DBS industry have increased.\19\ 
NCTA supports this assertion by noting that cable specific rulemakings 
at the Commission have been on the wane \20\ and that rate regulation 
of the cable programming service tier (CPST) ended in 1999, along with 
all of the Commission's CPST rate review activity.\21\ NCTA then 
highlights areas where DBS and cable are subject to a host of 
comparable, and in some cases service-specific, regulations. These 
include mandatory carriage obligations for broadcast signals, 
retransmission consent for the carriage of broadcast signals, network 
non-duplication, syndicated exclusivity and sports programming blackout 
requirements.\22\ ACA fully supports NCTA's recommendation that the 
Commission impose a per-subscriber fee on DBS.\23\ ACA points out the 
overwhelming disparity in regulatory fee assessments on small and 
medium-sized cable operators as compared to DBS, and states that the 
disparity places these operators at a structural disadvantage to their 
DBS competitors.\24\
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    \18\ NCTA Comments at 2.
    \19\ NCTA Comments at 8.
    \20\ NCTA Comments at 8.
    \21\ NCTA Comments at 8.
    \22\ NCTA Comments at 9.
    \23\ ACA Comments at 2.
    \24\ ACA Comments at 2.
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    14. DirecTV, Inc. and Echostar Satellite L.L.C. (DirecTV and 
Echostar) filed joint reply comments opposing the arguments of NCTA and 
ACA. The joint commenters claim that NTCA's proposal is only one part 
of the cable television industry's nationwide campaign to raise taxes 
paid by its DBS rivals.\25\ DirecTV

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and Echostar assert that the cable industry has failed to show that DBS 
regulatory fees are out of line with the Commission's DBS regulatory 
costs and that, accordingly, the cable industry has not made an 
argument that satisfies the standard set forth in section 9(b)(3) for 
``permitted amendments,'' to justify a change to the section 9 
regulatory fees for DBS operators.\26\ Specifically, DirecTV and 
Echostar maintain that before the Commission can amend the 
geostationary orbit (GSO) satellite space station fee category, it 
must, at a minimum, find \27\ that new rulemaking proceedings or 
changes in law have caused additions, deletions, or changes to the 
nature of the GSO space station fee category such that the space 
station fee no longer reasonably relates to the regulatory costs caused 
by the GSO space station service for certain regulatory activities, as 
those costs may be ``adjusted'' by the benefits to space station 
operators of such activities.\28\
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    \25\ DirecTV and Echostar Reply Comments at 1 and fn. 1.
    \26\ DirecTV and Echostar Reply Comments at 1 and 2.
    \27\ Section 9(b)(3) states: ``In making such amendments, the 
Commission shall add, delete, or reclassify services in the Schedule 
to reflect additions, deletions, or changes in the nature of its 
services as a consequence of Commission rulemaking proceedings or 
changes in law.'' DirecTV & Echostar do not provide a citation for 
their interpretation of this provision.
    \28\ DirecTV and Echostar Reply Comments at 3 and 4.
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    15. DirecTV and Echostar maintain that the section 9 statutory 
conditions have not been met.\29\ They argue that NCTA's justifications 
for raising DBS section 9 fees are unrelated to the standard for 
amending fees, as those justifications range from items that have 
nothing to do with the GSO space station category (market and 
regulatory changes in the cable industry), to items that have nothing 
to do with rulemakings or law (DBS subscriber gains, cable subscriber 
losses), or to regulatory proceedings in which DBS participation has 
not changed significantly in years (video programming competition, 
closed captioning, etc.).\30\
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    \29\ DirecTV & Echostar Reply Comments at 4.
    \30\ DirecTV & Echostar Reply Comments at 4.
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    16. We are not persuaded by NCTA's arguments that modifications to 
the section 9 regulatory fee structure are warranted at this time. We 
agree with DirecTV and Echostar that NCTA has not shown that the 
requirements of section 9 would be better satisfied by the 
reclassification of DBS and the assessment of the DBS fee on a per 
subscriber basis, as proposed by NCTA. We therefore will continue to 
use the section 9 regulatory fee classification of DBS as a GSO service 
and assess the fee on a per satellite basis as adopted by the 
Commission in prior fiscal years. The existing regulatory fee 
classification and related methodology has ensured that regulatory fees 
are reasonably related to the benefits provided by the Commission's 
activities.\31\ In addition the existing classification and methodology 
retained herein has been proven to result in collecting the amount 
required by Congress in its annual appropriations for the 
Commission.\32\ Finally, as a practical matter, we do not have 
sufficient time available to modify the section 9 regulatory fee 
classification and methodology as proposed by NCTA and still comply 
with the 90-day congressional notification requirement before we start 
our regulatory fee collections in the August/September time frame. For 
these reasons, we decline to adopt the NCTA's proposals and instead 
retain the existing section 9 regulatory fee classification and 
methodology for DBS at this time.
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    \31\ 47 U.S.C. 159(b)(1)(A).
    \32\ 47 U.S.C. 159(b)(1)(B).
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4. Broadband Radio Service (BRS)/Educational Broadband Service (EBS)
    17. On April 27, 2006, the Commission adopted a framework for BRS/
EBS regulatory fees in a BRS/EBS rulemaking.\33\ Briefly, the 
Commission adopted a MHz-based formula for BRS with tiered fees by 
markets, similar to our annual scale for broadcast television stations, 
but on a more simplified scale.\34\ As we proposed in the FY 2006 
NPRM,\35\ we would not implement these changes in our FY 2006 schedule 
of section 9 regulatory fees because the still-pending nature of the 
BRS/EBS rulemaking would not afford us with sufficient notice to do so. 
Accordingly, for FY 2006, BRS regulatory fees will be assessed using 
the rules currently in effect. For EBS, the Commission decided that 
section 9 regulatory fees should not be assessed on this service,\36\ 
which is consistent with our current policy of not assessing section 9 
regulatory fees on ITFS (Instructional Television Fixed Service).
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    \33\ See Amendment of parts 1, 21, 73, 74 and 101 of the 
Commission's rules to Facilitate the Provision of Fixed and Mobile 
Broadband Access, Educational and Other Advanced Services in the 
2150-2162 and 2500-2690 MHz Bands et al., Order on Reconsideration 
and Fifth Memorandum Opinion and Order and Third Memorandum Opinion 
and Order and Second Report and Order, FCC 06-46, paras. 367-376 
(rel. April 27, 2006) (BRS/EBS Second Report and Order).
    \34\ See id., para. 376.
    \35\ See FY 2006 NPRM, 71 FR at 17412 para. 9 (April 6, 2006) 
(proposed not to implement in the FY 2006 schedule of section 9 
Regulatory Fees any changes that might be adopted in the BRS/EBS 
proceeding).
    \36\ See BRS/EBS Second Report and Order at para. 373.
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5. International Bearer Circuits
    18. On February 6, 2006, VSNL Telecommunications (US) Inc. (VSNL) 
filed a Petition for Rulemaking urging the Commission to modify the 
current International Bearer Circuit Fee rules and policies as applied 
to non-common carrier (i.e., private) submarine cable operators.\37\ 
This Petition remains pending before the Commission, which issued a 
Public Notice designating the proceeding as RM-11312 and requesting 
comment on the Petition.\38\ In the FY 2006 NPRM, we stated that the 
complex issues presented by the VSNL Petition warranted consideration 
separately from the Commission's annual regulatory fee proceeding 
process, and that any comments on these issues arising from the FY 2006 
NPRM would be addressed with the record generated by the VSNL 
Petition.\39\ Apollo Submarine Cable System, Ltd. (Apollo), one of the 
parties that submitted comments on the VSNL Petition, also filed 
comments on the International Bearer Circuit Fee issue in response to 
the FY 2006 NPRM.\40\ In accordance with our stated intent in the FY 
2006 NPRM, we incorporate Apollo's instant comments into the VSNL 
Petition proceeding, RM-11312.
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    \37\ See Petition for Rulemaking of VSNL Telecommunications (US) 
Inc., RM-11312 (filed February 6, 2006).
    \38\ See Consumer and Governmental Affairs Bureau, Reference 
Information Center, Public Notice, Report No. 2759 (released 
February 15, 2006).
    \39\ See FY 2006 NPRM at fn. 20.
    \40\ See Apollo Comment at 2 and at fn. 6.
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B. Clarifications

1. Clarification Regarding When Section 9 Regulatory Fees Are Collected
    19. We continue to receive many inquiries each year from regulatees 
as to whether section 9 regulatory fees are collected in advance of our 
fiscal year, or whether they are collected in arrears. The Commission's 
fiscal year is the period of time from October 1 through September 
30.\41\ The Commission generally collects section 9 regulatory fees in 
August and/or September toward the end of the fiscal year, and the 
Commission will maintain the same regulatory fee schedule in FY 2006.
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    \41\ By way of example, our Fiscal Year 2006 began on October 1, 
2005 and runs through September 30, 2006.
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2. Effective Date of Payment of Multi-Year Wireless Fees
    20. The first eleven fee categories in our Attachment D, Schedule 
of Regulatory Fees, constitute a grouping

[[Page 43846]]

known as ``small wireless fees'' for multi-year wireless fees.\42\ 
Regulatory fees for this grouping are generally paid in advance for the 
entire 5-year or 10-year term of the license at the time that a renewal 
application (or application for a new license) is filed. Because these 
regulatory fees are paid when a renewal application (or application for 
a new license) is filed, these ``small wireless fees'' can be paid at 
any time during the fiscal year whenever the relevant application is 
filed. As a result, there has been some confusion as to whether the 
prior fiscal year (prior FY) or current fiscal year (current FY) rate 
applies when a renewal application (or application for a new license) 
is filed near the effective date of the current FY regulatory fees. The 
Commission clarified this matter in the FY 2005 R&O and Order on 
Reconsideration \43\ and we provide further clarification below.
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    \42\ See 47 CFR 1.1152 (note 1). ``Small fees are collected in 
advance for the entire license term. Therefore, the annual fee 
amount shown in this table that is a small fee * * * must be 
multiplied by the 5- or 10-year license term, as appropriate to 
arrive at the total amount of the regulatory fees owed * * *.''
    \43\ FY 2005 R&0 and Order on Reconsideration at para. 26.
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    21. In general, the applicable fee is the one in effect as of the 
date that the relevant application is filed. Thus, the current FY 
regulatory fee is applicable if the official filing date of the 
application is on or after the effective date of the current fee. The 
current FY regulatory fees generally become effective 30 or 60 days 
after publication of the regulatory fees Order in the Federal Register, 
or in some instances, 90 days after delivery of the Order to Congress. 
Generally, the ``effective date'' of the current fiscal year regulatory 
fees is published in a public notice soon after the Order is released.
    22. We wish to clarify the applicable filing date for wireless 
licenses in the fee category above. The Commission's rules for renewal 
of wireless licenses provide that licensees may file their renewal 
applications, and thus make regulatory fee payments, no more than 90 
days prior to the expiration date of their licenses.\44\ For the small 
wireless fees categories, the regulatory fee rate that applies depends 
upon the filing date of the application, i.e., the date that the 
application is electronically or manually filed with the Commission in 
accordance with the Commission's rules. However, applicants filing 
electronically have varying payment options that in some cases include 
the option to submit the payment manually with FCC Form 159. In this 
case, the applicant must submit payment so that it is received within 
10 days of filing the application electronically. As a result, an 
application that is filed shortly before the new FY fee rate becomes 
effective may result in payment occurring after the new FY fee rate is 
effective. In such cases, the fee rate will be calculated based on the 
prior FY fee rate because the application was electronically filed 
before the effective date of the current FY fee rate.
---------------------------------------------------------------------------

    \44\ See 47 CFR 1.949(a).
---------------------------------------------------------------------------

3. Clarification Regarding Experimental Licenses
    23. It has come to our attention that some licensees mistakenly 
believe that they have a section 9 fee obligation for their 
experimental licenses. We clarify that holders of experimental licenses 
are not required to pay regulatory fees for such licenses. Any holder 
of an experimental license who has mistakenly paid a regulatory fee for 
such license may submit a refund request in accordance with the 
Commission's rules.\45\
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    \45\ See 47 CFR 1.1160(d) and 1.1162. Refund requests should be 
sent via surface mail to: Federal Communications Commission, Office 
of the Managing Director, 445 12th Street, SW., Room 1-A625, 
Washington, DC 20554, Attention: Regulatory Fee Refund Request.
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C. Administrative and Operational Issues

    24. In our FY 2006 NPRM, we invited comment on the administrative 
and operational processes used to collect the annual section 9 
regulatory fees. Although these issues do not affect the amount of 
regulatory fees parties are obligated to submit, administrative and 
operational issues do impact the process of submitting fee payments. We 
sought general comment on ways to improve current processes. Mr. 
Kenneth J. Brown submitted comments on these issues, raising concerns 
over past practices regarding the accuracy of the Commission's billing 
of earth station non-payers. Mr. Brown states that last year the 
Commission erroneously sent licensees of recently-granted earth 
stations past-due bills for FY 2005 regulatory fees despite that fact 
that those earth stations licenses were granted after October 1, 2004 
(the effective date for FY 2005 regulatory fees).\46\ Because of this, 
Mr. Brown urges the Commission not to act on its proposal to expand its 
pre-billing initiatives to the earth station service category.\47\
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    \46\ Comments of Kenneth J. Brown at 1-2.
    \47\ Comments of Kenneth J. Brown at 1.
---------------------------------------------------------------------------

    25. In prior years the Commission's practice for issuing past-due 
bills was as follows. After the close of each annual regulatory fee 
collection cycle, we compared the FCC Registration Number (FRN) of 
those entities who paid with the total number of licensed entities in 
each fee service category and then sent those entities not having a 
record of payment a request for late payment or for information that 
clarifies their payment status. For FY 2006, we have obtained from each 
licensing system the names of the entities that had been granted 
licenses on or before October 1, 2005, prior to the start of the 
regulatory fee collection cycle. Using this information, we anticipate 
improvements in the post-regulatory fee season billing process that 
addresses the problem noted by Mr. Brown. Also, this fiscal year we 
have opted not to expand our pre-billing initiatives to the earth 
station category nor to any other categories, due to logistical and 
resource constraints.
    26. In his comments, Mr. Brown also states that he erroneously 
overpaid a regulatory fee obligation through Fee Filer and complains of 
the length of time it has taken for the Commission to process his 
refund request. Entities who do not receive a timely response to their 
refund request should call ARINQUIRES via the FCC Financial Operations 
Help Desk at 1-877-480-3201, Option 4, or e-mail [email protected] to 
obtain a status update.
1. Mandatory Use of Fee Filer
    27. In our FY 2006 NPRM, we sought comment on the impact of 
instituting a mandatory usage requirement for our electronic Fee Filer 
software application for large-volume section 9 regulatory fee payers. 
We invited comments solely to establish a record on this topic, stating 
that any such requirement would not be put into effect until FY 2007 or 
later.\48\ We received no comments supporting such action, one comment 
unfavorable to the use of Fee Filer in general,\49\ and one comment 
requesting that, if Fee Filer usage becomes mandatory, cable television 
operators serving less than 5,000 subscribers should have the option to 
mail their regulatory fee payments instead of using Fee Filer.\50\ In 
view of the foregoing, we will not mandate use of our Fee Filer 
software for large-volume section 9 regulatory fee payers either in FY 
2006 or FY 2007. We continue to encourage regulatees to use Fee Filer, 
especially those that would otherwise submit more than twenty-five (25) 
hardcopy Form 159-Cs.
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    \48\ FY 2006 NPRM at para. 11.
    \49\ Comments of Kenneth J. Brown at 3.
    \50\ American Cable Association (ACA) Comments at 6.

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[[Page 43847]]

2. Proposals for Notification and Collection of Regulatory Fees
    28. In this section, we sought comment on the administrative 
processes that the Commission uses to notify regulatees and collect 
regulatory fees. Each year, we generate public notices and fact sheets 
that notify regulatees of the fee payment due date and provide 
additional information regarding regulatory fee payment procedures. 
Consistent with our established practice, we will provide public 
notices, fact sheets and all other relevant material on our Web site at 
http://www.fcc.gov/fees/regfees.html for the FY 2006 regulatory fee 
cycle. As a general practice, we will not send such material via 
surface mail. However, in the event that regulatees do not have access 
to the Internet, we will mail public notices and other relevant 
material upon request. Regulatees and the general public may request 
such information by contacting the FCC Financial Operations Help Desk 
at (877) 480-3201, Option 4.
    29. Although we will not send public notices and fact sheets to 
regulatees en masse, we will send specific regulatory fee bills or 
assessments via surface mail or e-mail to select fee categories 
discussed below.\51\ We are pursuing our billing initiatives as part of 
our effort to modernize our financial practices. These initiatives also 
serve the purpose of providing licensees with notification of upcoming 
regulatory fees. Eventually, we intend to expand our billing 
initiatives to include all regulatory fee service categories.
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    \51\ An assessment is a proposed statement of the amount of 
regulatory fees owed by an entity to the Commission (or proposed 
subscriber count to be ascribed for purposes of setting the entity's 
regulatory fee) but it is not entered into the Commission's accounts 
receivable system as a current debt. By contrast, a bill is 
automatically recognized as a debt owed to the Commission. Bills 
reflect the amount owed and have a Fee Due Date of the last day of 
the regulatory fee payment window. Consequently, if a bill is not 
paid by the Fee Due Date, it becomes delinquent and is subject to 
our debt collection procedures. See 47 CFR 1.1161(c), 1.1164(f)(5) 
and 1.1910.
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a. Interstate Telecommunications Service Providers (ITSPs)--Billed
    30. In FY 2001, we began sending pre-completed FCC Form 159-W 
assessments to carriers in an effort to assist them in paying the 
Interstate Telecommunications Service Provider (ITSP) regulatory fee. 
The fee amount on FCC Form 159-W was calculated from the FCC Form 499-A 
report, which carriers are required to submit by April 1st of each 
year. Throughout FY 2002 and FY 2003, we refined the FCC Form 159-W to 
simplify the regulatory fee payment process.\52\ Beginning in FY 2004, 
the pre-completed FCC Form 159-W was sent to carriers as a bill, rather 
than as an assessment of amount due. Other than the manner in which 
Form 159-W payments were entered into our financial system, carriers 
experienced no procedural changes regarding the use of the FCC Form 
159-W when submitting payment of their ITSP regulatory fees. In the FY 
2006 NPRM, we sought comment on this billing initiative and ways to 
improve it. We received no comments or reply comments on our ITSP 
billing initiative, and will therefore continue our ITSP, Form 159-W, 
billing initiative in FY 2006.
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    \52\ Beginning in FY 2002, Form 159-W included a payment section 
at the bottom of the form that allowed carriers the opportunity to 
send in Form 159-W in lieu of completing Form 159 Remittance Advice 
Form.
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b. Satellite Space Station Licensees--Billed
    31. Beginning in FY 2004, we mailed regulatory fee bills via 
surface mail to licensees in our two satellite space station service 
categories. Specifically, geostationary orbit space station (GSO) 
licensees receive bills requesting regulatory fee payment for 
satellites that (1) were licensed by the Commission and operational on 
or before October 1 of the respective fiscal year; and (2) were not co-
located with and technically identical to another operational satellite 
on that date (i.e., were not functioning as a spare satellite). Non-
geostationary orbit space station (NGSO) licensees received bills 
requesting regulatory fee payment for systems that were licensed by the 
Commission and operational on or before October 1 of the respective 
fiscal year.
    32. In the FY 2006 NPRM, we sought comment on this billing 
initiative and on ways to improve it. We received no comments or reply 
comments on the satellite billing initiative, and will therefore 
continue our practice of billing GSO and NGSO satellite space station 
fee categories for FY 2006. We emphasize that the bills that we 
generate for our GSO and NGSO licensees will only be for the satellite 
or system aspects of their respective operations. GSO and NGSO 
licensees typically have regulatory fee obligations in other service 
categories (such as earth stations, broadcast facilities, etc.), and we 
expect satellite operators to meet their full fee payment obligations 
for their entire portfolio of FCC licenses.
c. Additional Service Categories for Billing or Assessing
    33. We initially explored the feasibility of expanding our FY 2006 
section 9 regulatory fee billing initiatives to include three 
additional service categories: Earth Stations, Cable Television Relay 
Service Stations (CARS), and the Local Multipoint Distribution Service 
(LMDS). We did not receive any comments supporting the billing of these 
three additional categories, and therefore will not pursue these 
additional billing initiatives in this fiscal year.
d. Media Services Licensees--Assessed
    34. Beginning in FY 2003, we sent fee assessment postcards via 
surface mail to media services entities on a per-facility basis. The 
postcards notified licensees of the date when fee payments were due; 
provided the assessed fee amount for the facility, as well as other 
data attributes that we used to determine the fee amount; and, 
beginning in FY 2004, provided licensees with a telephone number to 
call (Financial Operations Help Desk) in the event that they needed 
customer assistance. We received no comments or reply comments to 
improve our assessment initiative for media services licensees. 
Therefore, we will continue our postcard initiative in the manner 
originally planned for FY 2006.\53\
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    \53\ Fee assessments are proposed to be issued for AM and FM 
Radio Stations, AM and FM Construction Permits, FM Translators/
Boosters, VHF and UHF Television Stations, VHF and UHF Television 
Construction Permits, Satellite Television Stations, Low Power 
Television (LPTV) Stations and LPTV Translators/Boosters, to the 
extent that applicants, permittees and licensees of such facilities 
do not qualify as government entities or non-profit entities. Fee 
assessments have not been issued for broadcast auxiliary stations in 
prior years, nor will they be issued in FY 2006.
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    35. Consistent with the procedures we used last year, we will mail 
a single round of postcards to licensees and their other known points 
of contact listed in CDBS (Consolidated Database System) and in CORES 
(Commission Registration System), the Commission's two official 
databases for media services. By doing so, licensees and their other 
points of contact will be furnished the same information for each 
facility in question so that they can designate among themselves the 
payer of this year's fee. Mailing postcards to all interested parties 
at different addresses on file for each facility also encourages all 
parties to visit a Commission-authorized Web site to update or correct 
any information concerning the facility, or to certify their fee-exempt 
status, if appropriate. The

[[Page 43848]]

Web site will be available to licensees throughout this summer.\54\
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    \54\ The Commission-authorized Web site for media services 
licensees is http://www.fccfees.com.
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    36. In the past, some media services licensees have mistakenly 
mailed their postcards back to the Commission stapled to payment 
checks. We emphasize that licensees must still submit a completed FCC 
Form 159 Remittance Advice with their fee payments, despite having 
received an assessment postcard. The postcards may not be used as a 
substitute for a completed Form 159. If the licensee does not submit a 
completed Form 159 along with its fee payment, we will not be able to 
guarantee that a licensee's regulatory fee payment will be posted 
accurately to the licensee's account.
    37. We also emphasize that the most important data element that 
media services licensees need to include on their Form 159 is their 
facility ID number. The facility ID number is a unique identifier that 
remains constant over the course of a facility's existence. Despite the 
fact that we prominently display a facility ID number on the facility's 
postcard, and our Form 159 filing instructions require payers to 
provide their facility ID number (and associated call sign) for the 
facility in question, we continue to receive many incomplete Form 159s 
that do not provide the facility ID number for the facility for which 
the fee is being paid. If the facility ID number is not provided, we 
will not be able to guarantee that a licensee's regulatory fee payment 
will be posted accurately to the licensee's account.
e. Commercial Mobile Radio Service (CMRS) Cellular and Mobile 
Services--Assessed
    38. In FY 2004, the Commission began using telephone number data 
from the Numbering Resource Utilization Forecast (NRUF) form to assess 
regulatory fees on CMRS providers. Specifically, telephone number data 
is used to determine the number of subscribers upon which a regulatory 
fee assessment will be based. In both FY 2004 and FY 2005, we sought 
and received comments and reply comments from licensees that helped us 
to improve the CMRS cellular/mobile assessment process. For FY 2006, we 
again solicited, but did not receive, any comments or reply comments 
regarding the use of telephone number data to determine the subscriber 
count of CMRS providers. We continue to find telephone numbers to be a 
reliable, accurate method for determining subscriber counts for 
regulatory fee purposes. Based on our review of FY 2005 results, the 
Commission first assessed regulatory fees on 184.7 million numbers. The 
adjustment process resulted in a minor reduction of only 0.2 percent, 
or approximately 0.3 million telephone numbers. Therefore, as in prior 
years,\55\ we will send an assessment letter to CMRS providers using 
telephone number data based on the Numbering Resource Utilization 
Forecast (NRUF) form, which includes a list of the carrier's Operating 
Company Telephone Numbers (OCNs) upon which the assessment is 
based.\56\ Consistent with existing practice, the letters will not 
include OCNs with their respective assigned number counts, but rather, 
an aggregate total of assigned numbers for each carrier. We will also 
continue our procedure of giving entities an opportunity to amend their 
subscriber counts by sending two rounds of assessment letters--an 
initial assessment and a final assessment letter.
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    \55\ See FY 2005 R&O and Order on Reconsideration, 20 FCC Rcd 
12259, 12264 paras. 38-44.
    \56\ As described below, the NRUF figure will be adjusted for 
porting.
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    39. If the number of subscribers on the initial assessment letter 
differs from the subscriber count the service provider provided on its 
NRUF form, the carrier can correct its subscriber count by returning 
the assessment letter or by contacting (a telephone number will be 
provided in the letter) the Commission and stating a reason for the 
change, such as the purchase or the sale of a subsidiary, including the 
date of the transaction, and any other information that will help to 
justify a reason for the change.
    40. If we receive no response to our initial assessment letter, we 
will assume that the initial assessment is correct and will expect the 
fee payment to be based on the number of subscribers listed on the 
initial assessment as calculated using telephone number data from the 
NRUF report. We will review all responses to initial assessment letters 
and determine whether a change in the number of subscribers is 
warranted. We will then generate a final assessment letter that informs 
carriers as to whether or not we accept the changed number of 
subscribers.
    41. As in previous years, operators will certify their subscriber 
counts in Block 30 of the FCC Form 159 Remittance Advice when making 
their regulatory fee payments. As an additional enhancement this year 
to this assessment process, we will include porting information (e.g., 
information on the number of ``ports in'' and ``ports out'') in our 
``initial'' assessment letter so that licensees can account for any 
differences between the telephone number data submitted in their NRUF 
report and the Commission's assessment count.
    42. Although an initial and a final assessment letter will be 
mailed to carriers that have filed an NRUF form, some carriers may not 
be sent any letters of assessment because they did not file the NRUF 
form. These carriers should compute their fee payment using the 
standard methodology \57\ that is currently in place for CMRS Wireless 
services (e.g., compute their subscriber counts as of December 31, 
2005), and submit their payment accordingly on FCC Form 159. However, 
regardless of whether a carrier receives an assessment letter or 
computes the subscriber count themselves, the Commission reserves the 
right, under the Communications Act, to audit the number of subscribers 
for which regulatory fees are paid. In the event that the Commission 
determines that the number of subscribers is inaccurate or that an 
insufficient reason is given for making a correction on the initial 
assessment letter, we note that the Commission reserves the right to 
assess the carrier for the difference between what was paid and what 
should have been paid.
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    \57\ Federal Communications Commission, Regulatory Fees Fact 
Sheet: What You Owe--commercial Wireless Services for FY 2005 at 1 
(rel. July 2005). (http://www.fcc.gov/fees/regfees.html)
---------------------------------------------------------------------------

    43. In summary, we will (1) derive the subscriber count from NRUF 
telephone data based on ``assigned'' telephone number counts that have 
been adjusted for porting to net Type 0 ports (``in'' and ``out''), 
which should reflect a more accurate subscriber count; (2) provide 
carriers with the opportunity to revise the subscriber count listed on 
the initial assessment letter, and (3) require carriers to confirm 
their subscriber counts on an aggregate basis using telephone number 
data in the NRUF report.
f. Cable Television Subscribers--Assessed
    44. We adopt our proposal to generate fee assessment letters for 
the cable television industry consistent with the process the 
Commission used in FY 2005. We received one reply comment from the 
American Cable Association supporting the Commission's initiative ``to 
send out the fee assessment letters and emails to remind cable 
operators of their fee payment obligations.'' \58\ Under our proposal, 
we will generate fee assessment letters for the cable

[[Page 43849]]

operators who are on file as having paid regulatory fees the previous 
fiscal year for their basic cable subscribers, and request that they 
access a Commission-authorized web site to provide their aggregate 
basic cable subscriber count as of December 31, 2005. Also, as an 
additional means of notifying cable television regulatees of their 
section 9 regulatory fee payment obligations for FY 2006, we will send 
an e-mail reminder to all operators that have an e-mail address 
populated in the Media Bureau's Cable Operations and Licensing System 
(COALS).
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    \58\ Reply comments from the American Cable Association at 6.
---------------------------------------------------------------------------

    45. Our assessment letter to each operator will (1) announce the 
due date for payment of regulatory fees; (2) reflect the subscriber 
count for which the operator paid regulatory fees in FY 2005, thereby 
certifying the subscriber count as of December 31, 2004; and (3) 
request that the operator access a Commission-authorized web site to 
provide its aggregate subscriber count as of December 31, 2005. If the 
number of subscribers as of December 31, 2005 differs from that as 
reported for last year, operators will be required to provide a brief 
explanation for the differing subscriber counts and indicate when the 
difference occurred. Cable operators who do not have access to the 
Internet will be able to contact the FCC Financial Operations Help Desk 
at (877) 480-3201, Option 4 to provide their subscriber count as of 
December 31, 2005.
    46. Some cable operators may not have made regulatory fee payments 
in FY 2005 and, as a result, will not receive an assessment letter for 
FY 2006 regulatory fees. For example, a new company may have become 
operational after the first day of the fiscal year and therefore did 
not have a regulatory fee obligation in FY 2005; or an existing company 
did not make a payment because it filed a petition for waiver of 
regulatory fees for FY 2005 based on financial hardship. Regardless of 
the circumstance, we emphasize that not receiving a regulatory fee 
assessment letter in FY 2006 does not excuse an operator from its 
obligation to pay FY 2006 regulatory fees. All non-exempt cable 
operators, not only those that made payments in FY 2005 and/or receive 
assessment letters for FY 2006 fees, are required to make payments.
    47. We will also retain the payment procedures for cable television 
operators that we have had in place for the past two fiscal years. That 
is, we will continue to permit cable television operators to base their 
payment on their company's aggregate subscriber count as of December 
31, 2005, rather than requiring them to report subscriber counts on a 
per community unit identifier (CUID) basis on the FCC Form 159 
Remittance Advice. After providing their company's aggregate subscriber 
count in Block 25A of the FCC Form 159, operators will still be 
required to certify the accuracy of the subscriber count in Block 30.
3. Streamlined Regulatory Fee Payment Process for CMRS Providers
    48. We proposed in our FY 2006 NPRM to permit CMRS Cellular, 
Mobile, and Messaging service providers using an FCC Form 159 or the 
automated Fee Filer system to pay their subscriber totals at the 
aggregate level without having to identify and associate their 
subscriber counts with calls signs. Because we are requiring CMRS 
Cellular/Mobile providers to use the aggregate subscriber totals from 
their Numbering Resource Utilization Forecast report (NRUF),\59\ netted 
for porting, it would be consistent for providers to pay their 
subscriber totals at the aggregate level as well without having to 
associate subscriber counts with their individual call signs. We 
received one comment from the American Association of Paging Carriers 
supporting the Commission's effort to eliminate the requirement of 
having to allocate the subscriber count with their respective call 
signs.\60\ We believe that eliminating this requirement will improve 
the Commission's efficiency in processing regulatory fee payments, as 
well as reduce the administrative burden on licensees during the 
payment process. As a result, we eliminate the requirement for CMRS 
providers to identify their individual call signs when making their 
regulatory fee payment if they pay their regulatory fees at the 
aggregate subscriber level.
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    \59\ For more information on our proposed regulatory fee 
assessment initiative for CMRS providers this fiscal year, see also 
section II.C.2.e. of this Report and Order.
    \60\ Comments of American Association of Paging Carriers at 3.
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III. Procedural Matters

A. Payment of Regulatory Fees

1. De Minimis Fee Payment Liability
    49. Consistent with past practice, regulatees whose total FY 2006 
regulatory fee liability, including all categories of fees for which 
payment is due, amounts to less than $10 will be exempted from payment 
of FY 2006 regulatory fees.
2. Standard Fee Calculations and Payment Dates
    50. 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. Licensees are reminded that, under our current rules, 
the responsibility for payment of fees by service category is as 
follows:

    (a) Media Services: Regulatory fees must be paid for AM/FM radio 
station and VHF/UHF television station initial construction permits 
that were issued on or before October 1, 2005, and for all broadcast 
facility licenses granted on or before October 1, 2005. However, in 
instances where a permit or license is transferred or assigned after 
October 1, 2005, responsibility for payment rests with the holder of 
the permit or license as of the Fee Due Date.
    (b) Wireline (Common Carrier) Services: Fees must be paid for 
any authorization that was granted on or before October 1, 2005. 
However, in instances where a permit or license is transferred or 
assigned after October 1, 2005, responsibility for payment rests 
with the holder of the permit or license as of the Fee Due Date.
    (c) Wireless Services: Commercial Mobile Radio Service (CMRS) 
cellular, mobile, and messaging services (fees based upon a 
subscriber, unit or circuit count): Fees must be paid for any 
authorization that was issued on or before October 1, 2005. The 
number of subscribers, units or circuits on December 31, 2005 will 
be used as the basis from which to calculate the fee payment.
    The first eleven fee categories in our Attachment D, Schedule of 
Regulatory Fees, pay what the Commission refers to as ``small multi-
year wireless regulatory fees.'' Entities pay these regulatory fees 
in advance for the entire amount of the 5-year or 10-year term of 
initial license, and only pay fees again at the time of license 
renewal. As a result, the Commission does not collect regulatory 
fees for these eleven fee categories on an annual basis.
    (d) Multichannel Video Programming Distributor Services (cable 
television operators and CARS licensees): The number of basic cable 
television subscribers on December 31, 2005 will be used as the 
basis from which to calculate the fee payment.\61\ For CARS 
licensees, fees must be paid for any license that was granted on or 
before October 1, 2005. In instances where a CARS license is 
transferred or assigned after October 1, 2005, responsibility for 
payment rests with the holder of the license as of the Fee Due Date.
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    \61\ Cable television system operators should compute their 
basic subscribers as follows: Number of single family dwellings + 
number of individual households in multiple dwelling unit 
(apartments, condominiums, mobile home parks, etc.) paying at the 
basic subscriber rate + bulk rate customers + courtesy and free 
service. Note: Bulk-Rate Customers = Total annual bulk-rate charge 
divided by basic annual subscription rate for individual households. 
Operators may base their count on ``a typical day in the last full 
week'' of December 2005, rather than on a count as of December 31, 
2005.
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    (e) International Services: For earth stations and geostationary 
orbit space stations, regulatory fees must be paid for stations that 
were licensed and operational on or before October 1, 2005. In 
instances

[[Page 43850]]

where a license is transferred or assigned after October 1, 2005, 
responsibility for payment rests with the holder of the license as 
of the Fee Due Date. For non-geostationary orbit satellite systems, 
fees must be paid for systems that were licensed and operational on 
or before October 1, 2005. In instances where a license is 
transferred or assigned after October 1, 2005, responsibility for 
payment rests with the holder of the license as of the Fee Due Date. 
For international bearer circuits, payment is calculated on a per-
active circuit basis as of December 31, 2005.\62\
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    \62\ Regulatory fees for International Bearer Circuits are to be 
paid by facilities-based common carriers that have active 
international bearer circuits in any transmission facility for the 
provision of service to an end user or resale carrier, which 
includes active circuits to themselves or to their affiliates. In 
addition, non-common carrier satellite operators must pay a fee for 
each circuit sold or leased to any customer, including themselves or 
their affiliates, other than an international common carrier 
authorized by the Commission to provide U.S. international common 
carrier services. Non-common carrier submarine cable operators are 
also to pay fees for any and all international bearer circuits sold 
on an indefeasible right of use (IRU) basis or leased to any 
customer, including themselves or their affiliates, other than an 
international common carrier authorized by the Commission to provide 
U.S. international common carrier services. See Assessment and 
Collection of Regulatory Fees for Fiscal Year 2001, MD Docket No. 
01-76, Report and Order, 16 FCC Rcd 13525, 13593 (2001); Regulatory 
Fees Fact Sheet: What You Owe--International and Satellite Services 
Licensees for FY 2005 at 3 (rel. July 2005) (the fact sheet is 
available on the FCC Web site at: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-249904A4.pdf).
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3. Limitations on Credit Card Transactions
    51. The U.S. Treasury has advised the Commission that it will 
reject Credit Card transactions greater than $99,999.99 from a single 
credit card in a single day. The U.S. Treasury has published Bulletin 
No. 2005-03 in which Federal Agencies are directed to limit credit card 
collections per these rules. The Commission will institute policies to 
conform to the U.S. Treasury policy. Entities needing to remit amounts 
of $100,000.00 or greater should use check, ACH or Fed Wire payment 
methods. Additional information can be found at http://www.fcc.gov/fees.

B. Enforcement

    52. As a reminder to all licensees, section 159(c) of the 
Communications Act requires us to impose an additional charge as a 
penalty for late payment of any regulatory fee. As in years past, 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. REGULATORY FEE PAYMENT MUST BE RECEIVED 
AND STAMPED AT THE LOCKBOX BANK BY THE LAST DAY OF THE REGULATORY FEE 
FILING WINDOW, AND NOT MERELY POSTMARKED BY THE LAST DAY OF THE WINDOW. 
Failure to pay regulatory fees and/or any late penalty will subject 
regulatees to sanctions, including the Commission's Red Light Rule (see 
47 CFR 1.1910) and the provisions set forth in the Debt Collection 
Improvement Act of 1996 (DCIA). We also assess 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 not timely 
paid, the 25 percent late charge penalty will be assessed on the 
portion that is not paid in a timely manner.
    53. Furthermore, our regulatory fee rules provide that we will 
withhold action on any applications or other requests for benefits 
filed by anyone who is delinquent in any non-tax debts owed to the 
Commission (including regulatory fees) and will ultimately dismiss 
those applications or other requests if payment of the delinquent debt 
or other satisfactory arrangement for payment is not made.\63\ Failure 
to pay regulatory fees can also result in the initiation of a 
proceeding to revoke any and all authorizations held by the entity 
responsible for paying the delinquent fee(s).
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    \63\ See 47 CFR 1.1161(c), 1.1164(f)(5) and 1.1910.
---------------------------------------------------------------------------

C. Final Paperwork Reduction Act of 1995 Analysis

    54. This Report and Order does not contain proposed or modified 
information collection(s) subject to the Paperwork Reduction Act of 
1995 (PRA), Public Law 104-13. In addition, therefore, it does not 
contain any new or modified ``information collection burden for small 
business concerns with fewer than 25 employees,'' pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4).

D. Congressional Review Act Analysis

    55. The Commission will send a copy of this Report and Order in MD 
Docket No. 06-68 in a report to be sent to Congress and the General 
Accountability Office pursuant to the Congressional Review Act, see 5 
U.S.C. 801(a)(1)(A).

IV. Ordering Clauses

    56. Accordingly, it is ordered pursuant to sections 4(i) and (j), 
9, and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 
154(i), 154(j), 159, and 303(r) that the FY 2006 section 9 regulatory 
fee assessment requirements are adopted as specified herein.
    57. It is further ordered that part 1 of the Commission's rules are 
amended as set forth in the rule changes, and these rules shall become 
effective September 1, 2006.
    58. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Report and Order in MD Docket No. 06-68, including the 
Final Regulatory Flexibility Analysis, to the Chief Counsel for 
Advocacy of the U.S. Small Business Administration.
    59. It is further ordered that this proceeding is terminated.

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure.

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

Attachment A--Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\1\ the 
Commission prepared an Initial Regulatory Flexibility Analysis (IRFA) 
of the possible significant economic impact on small entities by the 
policies and rules proposed in its Notice of Proposed Rulemaking, In 
the Matter of Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006.\2\ Written public comments were sought on the FY 2006 fees 
proposal, including comments on the IRFA. This present Final Regulatory 
Flexibility Analysis (FRFA) conforms to the RFA.\3\
---------------------------------------------------------------------------

    \1\ 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 104-
121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the 
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
    \2\  See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, Notice of Proposed Rulemaking, 71 FR 17410 at para. 7 
(April 6, 2006) (FY 2006 NPRM).
    \3\ 5 U.S.C. 604.

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[[Page 43851]]

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 $298,771,000, the amount that Congress 
has required the Commission to recover, which includes the collection 
of an additional $10,000,000 by the Commission to contribute toward the 
Nation's debt reduction in fiscal year 2006. 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 and policies, herein adopted.\4\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \5\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\6\ 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 SBA.\7\
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    \4\ 5 U.S.C. 603(b)(3).
    \5\ 5 U.S.C. 601(6).
    \6\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), 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.''
    \7\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    5. Small Businesses. Nationwide, there are a total of 22.4 million 
small businesses, according to SBA data.\8\
---------------------------------------------------------------------------

    \8\  See SBA, Programs and Services, SBA Pamphlet No. CO-0028, 
at page 40 (July 2002).
---------------------------------------------------------------------------

    6. Small Organizations. Nationwide, there are approximately 1.6 
million small organizations.\9\
---------------------------------------------------------------------------

    \9\ Independent Sector, The New Nonprofit Almanac & Desk 
Reference (2002).
---------------------------------------------------------------------------

    7. Small Governmental Jurisdictions. 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.'' \10\ As of 1997, there were approximately 
87,453 governmental jurisdictions in the United States.\11\ 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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    \10\ 5 U.S.C. 601(5). Tables 490 and 492.
    \11\ U.S. Census Bureau, Statistical Abstract of the United 
States: 2000, section 9, pages 299-300, Tables 490 and 492.
---------------------------------------------------------------------------

    8. We have included small incumbent local exchange carriers 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.'' 
\12\ The SBA's Office of Advocacy contends that, for RFA purposes, 
small incumbent local exchange carriers are not dominant in their field 
of operation because any such dominance is not ``national'' in 
scope.\13\ We have therefore included small incumbent local exchange 
carriers in this RFA analysis, although we emphasize that this RFA 
action has no effect on Commission analyses and determinations in 
other, non-RFA contexts.
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    \12\ 15 U.S.C. 632.
    \13\ Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small 
Business Act contains a definition of ``small-business concern,'' 
which the RFA incorporates into its own definition of ``small 
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 
601(3) (RFA). SBA regulations interpret ``small business concern'' 
to include the concept of dominance on a national basis. See 13 CFR 
121.102(b).
---------------------------------------------------------------------------

    9. Incumbent Local Exchange Carriers (ILECs). Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for incumbent local exchange services. The appropriate 
size standard under SBA rules is for the category Wired 
Telecommunications Carriers. Under that size standard, such a business 
is small if it has 1,500 or fewer employees.\14\ According to 
Commission data,\15\ 1,303 carriers have reported that they are engaged 
in the provision of incumbent local exchange services. Of these 1,303 
carriers, an estimated 1,020 have 1,500 or fewer employees and 283 have 
more than 1,500 employees. Consequently, the Commission estimates that 
most providers of incumbent local exchange service are small businesses 
that may be affected by these rules.
---------------------------------------------------------------------------

    \14\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) code 517110 (changed from 513310 in October 2002).
    \15\ FCC, Wireline Competition Bureau, Industry Analysis and 
Technology Division, ``Trends in Telephone Service'' at Table 5.3, 
Page 5-5 (June 2005) (hereinafter ``Trends in Telephone Service''). 
This source uses data that are current as of October 1, 2004.
---------------------------------------------------------------------------

    10. Competitive Local Exchange Carriers (CLECs), Competitive Access 
Providers (CAPs), ``Shared-Tenant Service Providers,'' and ``Other 
Local Service Providers.'' Neither the Commission nor the SBA has 
developed a small business size standard specifically for these service 
providers. The appropriate size standard under SBA rules is for the 
category Wired Telecommunications Carriers. Under that size standard, 
such a business is small if it has 1,500 or fewer employees.\16\ 
According to Commission data,\17\ 820 carriers have reported that they 
are engaged in the provision of either competitive access provider 
services or competitive local exchange carrier services. Of these 820 
carriers, an estimated 726 have 1,500 or fewer employees and 94 have 
more than 1,500 employees. In addition, 12 carriers have reported that 
they are ``Shared-Tenant Service Providers,'' and all 12 are estimated 
to have 1,500 or fewer employees. In addition, 39 carriers have 
reported that they are ``Other Local Service Providers.'' Of the 39, an 
estimated 38 have 1,500 or fewer employees and one has more than 1,500 
employees. Consequently, the Commission estimates that most providers 
of competitive local exchange service, competitive access providers, 
``Shared-Tenant Service Providers,'' and ``Other Local Service 
Providers'' are small entities that may be affected by these rules.
---------------------------------------------------------------------------

    \16\ 13 CFR 121.201, NAICS code 517110 (changed from 513310 in 
October 2002).
    \17\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    11. Local Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees.\18\ According to Commission data,\19\ 143 carriers have 
reported that they are engaged in the provision of local resale 
services. Of these, an estimated 141 have 1,500 or fewer employees and 
two have more than 1,500 employees. Consequently, the Commission 
estimates that the majority

[[Page 43852]]

of local resellers are small entities that may be affected by these 
rules.
---------------------------------------------------------------------------

    \18\ 13 CFR 121.201, NAICS code 517310 (changed from 513330 in 
October 2002).
    \19\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    12. Toll Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees.\20\ According to Commission data,\21\ 770 carriers have 
reported that they are engaged in the provision of toll resale 
services. Of these, an estimated 747 have 1,500 or fewer employees and 
23 have more than 1,500 employees. Consequently, the Commission 
estimates that the majority of toll resellers are small entities that 
may be affected by these rules.
---------------------------------------------------------------------------

    \20\ 13 CFR 121.201, NAICS code 517310 (changed to 513330 in 
October 2002).
    \21\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    13. Payphone Service Providers (PSPs). Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
payphone services providers. The appropriate size standard under SBA 
rules is for the category Wired Telecommunications Carriers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees.\22\ According to Commission data,\23\ 654 carriers have 
reported that they are engaged in the provision of payphone services. 
Of these, an estimated 652 have 1,500 or fewer employees and two have 
more than 1,500 employees. Consequently, the Commission estimates that 
the majority of payphone service providers are small entities that may 
be affected by these rules.
---------------------------------------------------------------------------

    \22\ 3 CFR 121.201, NAICS code 517110 (changed from 513310 in 
October 2002).
    \23\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    14. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
providers of interexchange services. The appropriate size standard 
under SBA rules is for the category Wired Telecommunications Carriers. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees.\24\ According to Commission data,\25\ 316 carriers 
have reported that they are engaged in the provision of interexchange 
service. Of these, an estimated 292 have 1,500 or fewer employees and 
24 have more than 1,500 employees. Consequently, the Commission 
estimates that the majority of IXCs are small entities that may be 
affected by these rules.
---------------------------------------------------------------------------

    \24\ 13 CFR 121.201, NAICS code 517110 (changed from 513310 in 
October 2002).
    \25\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    15. Operator Service Providers (OSPs). Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
operator service providers. The appropriate size standard under SBA 
rules is for the category Wired Telecommunications Carriers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees.\26\ According to Commission data,\27\ 23 carriers have 
reported that they are engaged in the provision of operator services. 
Of these, an estimated 20 have 1,500 or fewer employees and three have 
more than 1,500 employees. Consequently, the Commission estimates that 
the majority of OSPs are small entities that may be affected by these 
rules.
---------------------------------------------------------------------------

    \26\ 13 CFR 121.201, NAICS code 517110 (changed from 513310 in 
October 2002).
    \27\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    16. Prepaid Calling Card Providers. Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
prepaid calling card providers. The appropriate size standard under SBA 
rules is for the category Telecommunications Resellers. Under that size 
standard, such a business is small if it has 1,500 or fewer 
employees.\28\ According to Commission data,\29\ 89 carriers have 
reported that they are engaged in the provision of prepaid calling 
cards. Of these, an estimated 88 have 1,500 or fewer employees and one 
has more than 1,500 employees. Consequently, the Commission estimates 
that the majority of prepaid calling card providers are small entities 
that may be affected by these rules.
---------------------------------------------------------------------------

    \28\ 13 CFR 121.201, NAICS code 517310 (changed from 513330 in 
October 2002).
    \29\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    17. 800 and 800-Like Service Subscribers.\30\ Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for 800 and 800-like service (``toll free'') subscribers. 
The appropriate size standard under SBA rules is for the category 
Telecommunications Resellers. Under that size standard, such a business 
is small if it has 1,500 or fewer employees.\31\ The most reliable 
source of information regarding the number of these service subscribers 
appears to be data the Commission receives from Database Service 
Management on the 800, 866, 877, and 888 numbers in use.\32\ According 
to our data, at the end of December 2004, the number of 800 numbers 
assigned was 7,540,453; the number of 888 numbers assigned was 
5,947,789; the number of 877 numbers assigned was 4,805,568; and the 
number of 866 numbers assigned was 5,011,291. We do not have data 
specifying the number of these subscribers that are not independently 
owned and operated or have more than 1,500 employees, and thus are 
unable at this time to estimate with greater precision the number of 
toll free subscribers that would qualify as small businesses under the 
SBA size standard. Consequently, we estimate that there are 7,540,453 
or fewer small entity 800 subscribers; 5,947,789 or fewer small entity 
888 subscribers; 4,805,568 or fewer small entity 877 subscribers, and 
5,011,291 or fewer entity 866 subscribers.
---------------------------------------------------------------------------

    \30\ We include all toll-free number subscribers in this 
category, including those for 888 numbers.
    \31\ 13 CFR 121.201, NAICS code 517310 (changed from 513330 in 
October 2002).
    \32\ FCC, Wireline Competition Bureau, Industry Analysis and 
Technology Division, ``Trends in Telephone Service'', Tables 18.4, 
18.5, 18.6, and 18.7, (June 2005).
---------------------------------------------------------------------------

    18. International Service Providers. The Commission has not 
developed a small business size standard specifically for providers of 
international service. The appropriate size standards under SBA rules 
are for the two broad categories of Satellite Telecommunications and 
Other Telecommunications. Under both categories, such a business is 
small if it has $12.5 million or less in average annual receipts.\33\ 
For the first category of Satellite Telecommunications, Census Bureau 
data for 1997 show that there were a total of 324 firms that operated 
for the entire year.\34\ Of this total, 273 firms had annual receipts 
of under $10 million, and an additional 24 firms had receipts of $10 
million to $24,999,999. Thus, the majority of Satellite 
Telecommunications firms can be considered small.
---------------------------------------------------------------------------

    \33\ 13 CFR 121.201, NAICS codes 517410 and 517910 (changed from 
513340 and 513390 in October 2002).
    \34\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 4, NAICS code 513340 (issued October 2000).
---------------------------------------------------------------------------

    19. The second category--Other Telecommunications--includes 
``establishments primarily engaged in * * * providing satellite 
terminal stations and associated facilities operationally connected 
with one or more terrestrial communications systems and capable of 
transmitting telecommunications to or receiving telecommunications from 
satellite systems.'' \35\ According to Census Bureau data for 1997, 
there were 439 firms in this category that operated for the entire 
year.\36\ Of this total, 424 firms had annual receipts of $5 million to

[[Page 43853]]

$9,999,999 and an additional six firms had annual receipts of $10 
million to $24,999,990. Thus, under this second size standard, the 
majority of firms can be considered small.
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    \35\ Office of Management and Budget, North American Industry 
Classification System, page 513 (1997) (NAICS code 513390, changed 
to 517910 in October 2002).
    \36\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 4, NAICS code 513390 (issued October 2000).
---------------------------------------------------------------------------

    20. Wireless Service Providers. The SBA has developed a small 
business size standard for wireless firms within the two broad economic 
census categories of ``Paging'' \37\ and ``Cellular and Other Wireless 
Telecommunications.'' \38\ Under both SBA categories, a wireless 
business is small if it has 1,500 or fewer employees. For the census 
category of Paging, Census Bureau data for 1997 show that there were 
1,320 firms in this category, total, that operated for the entire 
year.\39\ Of this total, 1,303 firms had employment of 999 or fewer 
employees, and an additional 17 firms had employment of 1,000 employees 
or more.\40\ Thus, under this category and associated small business 
size standard, the great majority of firms can be considered small. For 
the census category Cellular and Other Wireless Telecommunications, 
U.S. Census Bureau data for 1997 show that there were 977 firms in this 
category, total, that operated for the entire year.\41\ 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.\42\ Thus, under 
this second category and size standard, the great majority of firms 
can, again, be considered small.
---------------------------------------------------------------------------

    \37\ 13 CFR 121.201, NAICS code 513321 (changed to 517211 in 
October 2002).
    \38\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \39\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
``Information,'' Table 5, Employment Size of Firms Subject to 
Federal Income Tax: 1997, NAICS code 513321 (issued October 2000).
    \40\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
``Information,'' Table 5, Employment Size of Firms Subject to 
Federal Income Tax: 1997, NAICS code 513321 (issued October 2000). 
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 1000 employees or more.''
    \41\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
``Information,'' Table 5, Employment Size of Firms Subject to 
Federal Income Tax: 1997, NAICS code 513322 (issued October 2000).
    \42\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
``Information,'' Table 5, Employment Size of Firms Subject to 
Federal Income Tax: 1997, NAICS code 513322 (issued October 2000). 
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 1000 employees or more.''
---------------------------------------------------------------------------

    21. Internet Service Providers. The SBA has developed a small 
business size standard for Internet Service Providers. This category 
comprises establishments ``primarily engaged in providing direct access 
through telecommunications networks to computer-held information 
compiled or published by others.'' \43\ Under the SBA size standard, 
such a business is small if it has average annual receipts of $21 
million or less.\44\ According to Census Bureau data for 1997, there 
were 2,751 firms in this category that operated for the entire 
year.\45\ Of these, 2,659 firms had annual receipts of under $10 
million, and an additional 67 firms had receipts of between $10 million 
and $24,999,999.\46\ Thus, under this size standard, the great majority 
of firms can be considered small entities.
---------------------------------------------------------------------------

    \43\ Office of Management and Budget, North American Industry 
Classification System, page 515 (1997). NAICS code 514191, ``On-Line 
Information Services'' (changed to current name and to code 518111 
in October 2002).
    \44\ 13 CFR 121.201, NAICS code 518111.
    \45\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
``Information,'' Table 4, Receipts Size of Firms Subject to Federal 
Income Tax: 1997, NAICS code 514191 (issued October 2000).
    \46\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
``Information,'' Table 4, Receipts Size of Firms Subject to Federal 
Income Tax: 1997, NAICS code 514191 (issued October 2000).
---------------------------------------------------------------------------

    22. Cellular Licensees. The SBA has developed a small business size 
standard for wireless firms within the broad economic census category 
``Cellular and Other Wireless Telecommunications.'' \47\ Under this SBA 
category, a wireless business is small if it has 1,500 or fewer 
employees. For the census category Cellular and Other Wireless 
Telecommunications firms, U.S. Census Bureau data for 1997 show that 
there were 977 firms in this category, total, that operated for the 
entire year.\48\ 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.\49\ Thus, under this category and size standard, the 
great majority of firms can be considered small. According to the most 
recent Trends in Telephone Service data, 604 carriers reported that 
they were engaged in the provision of cellular service, personal 
communications service, or specialized mobile radio telephony services, 
which are placed together in the data.\50\ We have estimated that 427 
of these are small, under the SBA small business size standard.\51\
---------------------------------------------------------------------------

    \47\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \48\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
``Information,'' Table 5, Employment Size of Firms Subject to 
Federal Income Tax: 1997, NAICS code 513322 (issued October 2000).
    \49\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
``Information,'' Table 5, Employment Size of Firms Subject to 
Federal Income Tax: 1997, NAICS code 513322 (issued October 2000). 
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 1000 employees or more.''
    \50\ FCC, Wireline Competition Bureau, Industry Analysis and 
Technology Division, ``Trends in Telephone Service'' at Table 5.3, 
page 5-5 (June 2005). This source uses data that are current as of 
October 1, 2004.
    \51\ FCC, Wireline Competition Bureau, Industry Analysis and 
Technology Division, ``Trends in Telephone Service'' at Table 5.3, 
page 5-5 (June 2005). This source uses data that are current as of 
October 1, 2004.
---------------------------------------------------------------------------

    23. Common Carrier Paging. The SBA has developed a small business 
size standard for wireless firms within the broad economic census 
categories of ``Paging.'' \52\ Under this SBA category, a wireless 
business is small if it has 1,500 or fewer employees. For the census 
category of Paging, U.S. Census Bureau data for 1997 show that there 
were 1,320 firms in this category, total, that operated for the entire 
year.\53\ Of this total, 1,303 firms had employment of 999 or fewer 
employees, and an additional 17 firms had employment of 1,000 employees 
or more.\54\ Thus, under this category and associated small business 
size standard, the great majority of firms can be considered small.
---------------------------------------------------------------------------

    \52\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \53\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
``Information,'' Table 5, Employment Size of Firms Subject to 
Federal Income Tax: 1997, NAICS code 513321 (issued October 2000).
    \54\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
``Information,'' Table 5, Employment Size of Firms Subject to 
Federal Income Tax: 1997, NAICS code 513321 (issued October 2000). 
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 1000 employees or more.''
---------------------------------------------------------------------------

    24. In the Paging Second Report and Order, the Commission adopted a 
size standard for ``small businesses'' for purposes of determining 
their eligibility for special provisions such as bidding credits and 
installment payments.\55\ 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.\56\ 
The SBA has approved this definition.\57\ An auction of Metropolitan 
Economic Area (MEA) licenses commenced on February 24, 2000, and closed 
on March 2, 2000. Of the 2,499 licenses auctioned, 985 were

[[Page 43854]]

sold.\58\ Fifty-seven companies claiming small business status won 440 
licenses.\59\ An auction of MEA and Economic Area (EA) licenses 
commenced on October 30, 2001, and closed on December 5, 2001. Of the 
15,514 licenses auctioned, 5,323 were sold.\60\ One hundred thirty-two 
companies claiming small business status purchased 3,724 licenses. A 
third auction, consisting of 8,874 licenses in each of 175 EAs and 
1,328 licenses in all but three of the 51 MEAs commenced on May 13, 
2003, and closed on May 28, 2003. Seventy-seven bidders claiming small 
or very small business status won 2,093 licenses.\61\ Currently, there 
are approximately 74,000 Common Carrier Paging licenses. According to 
the most recent Trends in Telephone Service, 608 private and common 
carriers reported that they were engaged in the provision of either 
paging or ``other mobile'' services.\62\ Of these, we estimate that 589 
are small, under the SBA-approved small business size standard.\63\ We 
estimate that the majority of common carrier paging providers would 
qualify as small entities under the SBA definition.
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    \55\ Revision of part 22 and part 90 of the Commission's rules 
to Facilitate Future Development of Paging Systems, Second Report 
and Order, 12 FCC Rcd 2732, 2811-2812, paras. 178-181 (Paging Second 
Report and Order); see also Revision of part 22 and part 90 of the 
Commission's rules to Facilitate Future Development of Paging 
Systems, Memorandum Opinion and Order on Reconsideration, 14 FCC Rcd 
10030, 10085-10088, paras. 98-107 (1999).
    \56\ Paging Second Report and Order, 12 FCC Rcd at 2811, para. 
179.
    \57\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, from Aida 
Alvarez, Administrator, Small Business Administration, dated 
December 2, 1998.
    \58\ See ``929 and 931 MHz Paging Auction Closes,'' Public 
Notice, 15 FCC Rcd 4858 (WTB 2000).
    \59\ See ``929 and 931 MHz Paging Auction Closes,'' Public 
Notice, 15 FCC Rcd 4858 (WTB 2000).
    \60\ See ``Lower and Upper Paging Band Auction Closes,'' Public 
Notice, 16 FCC Rcd 21821 (WTB 2002).
    \61\ See ``Lower and Upper Paging Bands Auction Closes,'' Public 
Notice, 18 FCC Rcd 11154 (WTB 2003).
    \62\ See Trends in Telephone Service, Industry Analysis 
Division, Wireline Competition Bureau, Table 5.3 (Number of 
Telecommunications Service Providers by Size of Business) (June 
2005).
    \63\ 13 CFR 121.201, NAICS code 517211.
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    25. Wireless Communications Services. This service can be used for 
fixed, mobile, radiolocation, and digital audio broadcasting satellite 
uses. The Commission defined ``small business'' for the wireless 
communications services (WCS) auction as an entity with average gross 
revenues of $40 million for each of the three preceding years, and a 
``very small business'' as an entity with average gross revenues of $15 
million for each of the three preceding years.\64\ The SBA has approved 
these definitions.\65\ The Commission auctioned geographic area 
licenses in the WCS service. In the auction, which commenced on April 
15, 1997 and closed on April 25, 1997, there were seven bidders that 
won 31 licenses that qualified as very small business entities, and one 
bidder that won one license that qualified as a small business entity. 
An auction for one license in the 1670-1674 MHz band commenced on April 
30, 2003 and closed the same day. One license was awarded. The winning 
bidder was not a small entity.
---------------------------------------------------------------------------

    \64\ Amendment of the Commission's rules to Establish part 27, 
the Wireless Communications Service (WCS), Report and Order, 12 FCC 
Rcd 10785, 10879, para. 194 (1997).
    \65\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, from Aida Alvarez, Administrator, Small 
Business Administration, dated December 2, 1998.
---------------------------------------------------------------------------

    26. Wireless Telephony. Wireless telephony includes cellular, 
personal communications services, and specialized mobile radio 
telephony carriers. The SBA has developed a small business size 
standard for ``Cellular and Other Wireless Telecommunications'' 
services.\66\ Under the SBA small business size standard, a business is 
small if it has 1,500 or fewer employees.\67\ According to the most 
recent Trends in Telephone Service data, 719 carriers reported that 
they were engaged in wireless telephony.\68\ We have estimated that 427 
of these are small under the SBA small business size standard.
---------------------------------------------------------------------------

    \66\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \67\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \68\ FCC, Wireline Competition Bureau, Industry Analysis and 
Technology Division, ``Trends in Telephone Service'' at Table 5.3, 
page 5-5 (June 2005). This source uses data that are current as of 
October 1, 2004.
---------------------------------------------------------------------------

    27. Broadband Personal Communications Service. The broadband 
personal communications services (PCS) spectrum is divided into six 
frequency blocks designated A through F, and the Commission has held 
auctions for each block. The Commission has created a small business 
size standard for Blocks C and F as an entity that has average gross 
revenues of less than $40 million in the three previous calendar 
years.\69\ For Block F, an additional small business size standard 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.\70\ These 
small business size standards, in the context of broadband PCS 
auctions, have been approved by the SBA.\71\ No small businesses within 
the SBA-approved small business size standards 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.\72\ On March 23, 
1999, the Commission reauctioned 155 C, D, E, and F Block licenses; 
there were 113 small business winning bidders.\73\
---------------------------------------------------------------------------

    \69\ See Amendment of parts 20 and 24 of the Commission's 
rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7850-
7852, paras. 57-60 (1996); see also 47 CFR 24.720(b).
    \70\ See Amendment of parts 20 and 24 of the Commission's 
rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7852, 
para. 60.
    \71\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, from Aida Alvarez, Administrator, Small 
Business Administration, dated December 2, 1998.
    \72\ FCC News, ``Broadband PCS, D, E and F Block Auction 
Closes,'' No. 71744 (released January 14, 1997).
    \73\ See ``C, D, E, and F Block Broadband PCS Auction Closes,'' 
Public Notice, 14 FCC Rcd 6688 (WTB 1999).
---------------------------------------------------------------------------

    28. 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.\74\ Subsequent events, concerning Auction 35, including 
judicial and agency determinations, resulted in a total of 163 C and F 
Block licenses being available for grant.
---------------------------------------------------------------------------

    \74\ See ``C and F Block Broadband PCS Auction Closes; Winning 
Bidders Announced,'' Public Notice, 16 FCC Rcd 2339 (2001).
---------------------------------------------------------------------------

    29. Narrowband Personal Communications Services. The Commission 
held an auction for Narrowband PCS licenses that commenced on July 25, 
1994, and closed on July 29, 1994. A second auction commenced on 
October 26, 1994 and closed on November 8, 1994. For purposes of the 
first two Narrowband PCS auctions, ``small businesses'' were entities 
with average gross revenues for the prior three calendar years of $40 
million or less.\75\ Through these auctions, the Commission awarded a 
total of 41 licenses, 11 of which were obtained by four small 
businesses.\76\ To ensure meaningful participation by small business 
entities in future auctions, the Commission adopted a two-tiered small 
business size standard in the Narrowband PCS Second Report and

[[Page 43855]]

Order.\77\ 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.\78\ 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.\79\ The SBA has approved 
these small business size standards.\80\ A third auction commenced on 
October 3, 2001 and closed on October 16, 2001. Here, five bidders won 
317 (Metropolitan Trading Areas and nationwide) licenses.\81\ Three of 
these claimed status as a small or very small entity and won 311 
licenses.
---------------------------------------------------------------------------

    \75\ Implementation of section 309(j) of the Communications 
Act--Competitive Bidding Narrowband PCS, Third Memorandum Opinion 
and Order and Further Notice of Proposed Rulemaking, 10 FCC Rcd 175, 
196, para. 46 (1994).
    \76\ See ``Announcing the High Bidders in the Auction of ten 
Nationwide Narrowband PCS Licenses, Winning Bids Total 
$617,006,674,'' Public Notice, PNWL 94-004 (released Aug. 2, 1994); 
``Announcing the High Bidders in the Auction of 30 Regional 
Narrowband PCS Licenses; Winning Bids Total $490,901,787,'' Public 
Notice, PNWL 94-27 (released Nov. 9, 1994).
    \77\ Amendment of the Commission's rules to Establish New 
Personal Communications Services, Narrowband PCS, Second Report and 
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd 
10456, 10476, para. 40 (2000).
    \78\ Amendment of the Commission's rules to Establish New 
Personal Communications Services, Narrowband PCS, Second Report and 
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd 
10456, 10476, para. 40 (2000).
    \79\ Amendment of the Commission's rules to Establish New 
Personal Communications Services, Narrowband PCS, Second Report and 
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd 
10456, 10476, para. 40 (2000).
    \80\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, from Aida Alvarez, Administrator, Small 
Business Administration, dated December 2, 1998.
    \81\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16 
FCC Rcd 18663 (WTB 2001).
---------------------------------------------------------------------------

    30. Lower 700 MHz Band Licenses. We adopted criteria for defining 
three groups of small businesses for purposes of determining their 
eligibility for special provisions such as bidding credits.\82\ We have 
defined a ``small business'' as an entity that, together with its 
affiliates and controlling principals, has average gross revenues not 
exceeding $40 million for the preceding three years.\83\ A ``very small 
business'' is defined as an entity that, together with its affiliates 
and controlling principals, has average gross revenues that are not 
more than $15 million for the preceding three years.\84\ Additionally, 
the lower 700 MHz Service has a third category of small business status 
that may be claimed for Metropolitan/Rural Service Area (MSA/RSA) 
licenses. The third category is ``entrepreneur,'' which is defined as 
an entity that, together with its affiliates and controlling 
principals, has average gross revenues that are not more than $3 
million for the preceding three years.\85\ The SBA has approved these 
small size standards.\86\ An auction of 740 licenses (one license in 
each of the 734 MSAs/RSAs and one license in each of the six Economic 
Area Groupings (EAGs)) commenced on August 27, 2002, and closed on 
September 18, 2002. Of the 740 licenses available for auction, 484 
licenses were sold to 102 winning bidders. Seventy-two of the winning 
bidders claimed small business, very small business or entrepreneur 
status and won a total of 329 licenses.\87\ A second auction commenced 
on May 28, 2003, and closed on June 13, 2003, and included 256 
licenses: 5 EAG licenses and 476 Cellular Market Area licenses.\88\ 
Seventeen winning bidders claimed small or very small business status 
and won 60 licenses, and nine winning bidders claimed entrepreneur 
status and won 154 licenses.\89\
---------------------------------------------------------------------------

    \82\ See Reallocation and Service Rules for the 698-746 MHz 
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC 
Rcd 1022 (2002).
    \83\ See Reallocation and Service Rules for the 698-746 MHz 
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC 
Rcd 1022, 1087-88, para. 172 (2002).
    \84\ See Reallocation and Service Rules for the 698-746 MHz 
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC 
Rcd 1022, 1087-88, para. 172 (2002).
    \85\ See Reallocation and Service Rules for the 698-746 MHz 
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC 
Rcd 1022, 1088, para. 173 (2002).
    \86\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
August 10, 1999.
    \87\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice, 
17 FCC Rcd 17272 (WTB 2002).
    \88\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice, 
18 FCC Rcd 11873 (WTB 2003).
    \89\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice, 
18 FCC Rcd 11873 (WTB 2003).
---------------------------------------------------------------------------

    31. Upper 700 MHz Band Licenses. The Commission released a Report 
and Order, authorizing service in the upper 700 MHz band.\90\ This 
auction, previously scheduled for January 13, 2003, has been 
postponed.\91\
---------------------------------------------------------------------------

    \90\ Service Rules for the 746-764 and 776-794 MHz Bands, and 
Revisions to part 27 of the Commission's rules, Second Memorandum 
Opinion and Order, 16 FCC Rcd 1239 (2001).
    \91\ See ``Auction of Licenses for 747-762 and 777-792 MHz Bands 
(Auction No. 31) Is Rescheduled,'' Public Notice, 16 FCC Rcd 13079 
(WTB 2003).
---------------------------------------------------------------------------

    32. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order, 
we adopted size standards for ``small businesses'' and ``very small 
businesses'' for purposes of determining their eligibility for special 
provisions such as bidding credits and installment payments.\92\ A 
small business in this service is an entity that, together with its 
affiliates and controlling principals, has average gross revenues not 
exceeding $40 million for the preceding three years.\93\ 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 $15 million for the preceding three years.\94\ SBA approval 
of these definitions is not required.\95\ An auction of 52 Major 
Economic Area (MEA) licenses commenced on September 6, 2000, and closed 
on September 21, 2000.\96\ 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.\97\
---------------------------------------------------------------------------

    \92\ See Service Rules for the 746-764 MHz Bands, and Revisions 
to part 27 of the Commission's rules, Second Report and Order, 15 
FCC Rcd 5299 (2000).
    \93\ See Service Rules for the 746-764 MHz Bands, and Revisions 
to part 27 of the Commission's rules, Second Report and Order, 15 
FCC Rcd 5299, 5343, para. 108 (2000).
    \94\ See Service Rules for the 746-764 MHz Bands, and Revisions 
to part 27 of the Commission's rules, Second Report and Order, 15 
FCC Rcd 5299, 5343, para. 108 (2000).
    \95\ See Service Rules for the 746-764 MHz Bands, and Revisions 
to part 27 of the Commission's rules, Second Report and Order, 15 
FCC Rcd 5299, 5343, para. 108 n. 246 (for the 746-764 MHz and 776-
794 MHz bands, the Commission is exempt from 15 U.S.C. 632, which 
requires Federal agencies to obtain SBA approval before adopting 
small business size standards).
    \96\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders 
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
    \97\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders 
Announced,'' Public Notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------

    33. Specialized Mobile Radio. The Commission awards ``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.\98\ The Commission awards ``very small entity'' bidding 
credits to firms that had revenues of no more than $3 million in each 
of the three previous calendar years.\99\ The SBA has approved these 
small business size standards for the 900 MHz Service.\100\ The 
Commission has held auctions for geographic area licenses in the 800 
MHz and 900 MHz bands. The 900 MHz SMR auction began on December 5, 
1995, and closed on April 15, 1996. Sixty bidders claiming that they 
qualified as small businesses under the $15 million size

[[Page 43856]]

standard won 263 geographic area licenses in the 900 MHz SMR band. The 
800 MHz SMR auction for the upper 200 channels began on October 28, 
1997, and was completed on December 8, 1997. Ten bidders claiming that 
they qualified as small businesses under the $15 million size standard 
won 38 geographic area licenses for the upper 200 channels in the 800 
MHz SMR band.\101\ A second auction for the 800 MHz band was held on 
January 10, 2002 and closed on January 17, 2002 and included 23 BEA 
licenses. One bidder claiming small business status won five 
licenses.\102\
---------------------------------------------------------------------------

    \98\ 47 CFR 90.814(b)(1).
    \99\ 47 CFR 90.814(b)(1).
    \100\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
August 10, 1999. We note that, although a request was also sent to 
the SBA requesting approval for the small business size standard for 
800 MHz, approval is still pending.
    \101\ See ``Correction to Public Notice DA 96-586 `FCC Announces 
Winning Bidders in the Auction of 1020 Licenses to Provide 900 MHz 
SMR in Major Trading Areas,' '' Public Notice, 18 FCC Rcd 18367 (WTB 
1996).
    \102\ See ``Multi-Radio Service Auction Closes,'' Public Notice, 
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------

    34. The auction of the 1,053 800 MHz SMR geographic area licenses 
for the General Category channels began on August 16, 2000, and was 
completed on September 1, 2000. Eleven bidders won 108 geographic area 
licenses for the General Category channels in the 800 MHz SMR band 
qualified as small businesses under the $15 million size standard.\103\ 
In an auction completed on December 5, 2000, a total of 2,800 Economic 
Area licenses in the lower 80 channels of the 800 MHz SMR service were 
sold.\104\ Of the 22 winning bidders, 19 claimed small business status 
and won 129 licenses. Thus, combining all three auctions, 40 winning 
bidders for geographic licenses in the 800 MHz SMR band claimed status 
as small business.
---------------------------------------------------------------------------

    \103\ See ``800 MHz Specialized Mobile Radio (SMR) Service 
General Category (851-854 MHz) and Upper Band (861-865 MHz) Auction 
Closes; Winning Bidders Announced,'' Public Notice, 15 FCC Rcd 17162 
(2000).
    \104\ See ``800 MHz SMR Service Lower 80 Channels Auction 
Closes; Winning Bidders Announced,'' Public Notice, 16 FCC Rcd 1736 
(2000).
---------------------------------------------------------------------------

    35. In addition, there are numerous incumbent site-by-site SMR 
licensees and licensees with extended implementation authorizations in 
the 800 and 900 MHz bands. We do not know how many firms provide 800 
MHz or 900 MHz geographic area SMR pursuant to extended implementation 
authorizations, nor how many of these providers have annual revenues of 
no more than $15 million. One firm has over $15 million in revenues. We 
assume, for purposes of this analysis, that all of the remaining 
existing extended implementation authorizations are held by small 
entities, as that small business size standard is approved by the SBA.
    36. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. Phase I licensing was conducted 
by lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized 
to operate in the 220 MHz band. The Commission has not developed a 
definition of small entities specifically applicable to such incumbent 
220 MHz Phase I licensees. To estimate the number of such licensees 
that are small businesses, we apply the small business size standard 
under the SBA rules applicable to ``Cellular and Other Wireless 
Telecommunications'' companies. This category provides that a small 
business is a wireless company employing no more than 1,500 
persons.\105\ According to the Census Bureau data for 1997, only twelve 
firms out of a total of 1,238 such firms that operated for the entire 
year in 1997, had 1,000 or more employees.\106\ 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 standard.
---------------------------------------------------------------------------

    \105\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \106\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 513322 (October 2000).
---------------------------------------------------------------------------

    37. 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 
defining ``small'' and ``very small'' businesses for purposes of 
determining their eligibility for special provisions such as bidding 
credits and installment payments.\107\ This small business 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.\108\ A ``very 
small business'' is defined as an entity that, together with its 
affiliates and controlling principals, has average gross revenues that 
do not exceed $3 million for the preceding three years.\109\ The SBA 
has approved these small size standards.\110\ Auctions of Phase II 
licenses commenced on September 15, 1998, and closed on October 22, 
1998.\111\ 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.\112\ Thirty-
nine small businesses won 373 licenses in the first 220 MHz auction. A 
second auction included 225 licenses: 216 EA licenses and 9 EAG 
licenses. Fourteen companies claiming small business status won 158 
licenses.\113\ A third auction included four licenses: 2 BEA licenses 
and 2 EAG licenses in the 220 MHz Service. No small or very small 
business won any of these licenses.\114\
---------------------------------------------------------------------------

    \107\ Amendment of part 90 of the Commission's rules to Provide 
For the Use of the 220-222 MHz Band by the Private Land Mobile Radio 
Service, Third Report and Order, 12 FCC Rcd 10943, 11068-70, paras. 
291-295 (1997).
    \108\ Id. at 11068, paras. 291.
    \109\ Id.
    \110\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
January 6, 1998.
    \111\ See generally ``220 MHz Service Auction Closes,'' Public 
Notice, 14 FCC Rcd 605 (WTB 1998).
    \112\ See ``FCC Announces It is Prepared to Grant 654 Phase II 
220 MHz Licenses After Final Payment is Made,'' Public Notice, 14 
FCC Rcd 1085 (WTB 1999).
    \113\ See ``Phase II 220 MHz Service Spectrum Auction Closes,'' 
Public Notice, 14 FCC Rcd 11218 (WTB 1999).
    \114\ See ``Multi-Radio Service Auction Closes,'' Public Notice, 
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------

    38. Private Land Mobile Radio (PLMR). PLMR systems serve an 
essential role in a range of industrial, business, land transportation, 
and public safety activities. These radios are used by companies of all 
sizes operating in all U.S. business categories, and are often used in 
support of the licensee's primary (non-telecommunications) business 
operations. For the purpose of determining whether a licensee of a PLMR 
system is a small business as defined by the SBA, we could use the 
definition for ``Cellular and Other Wireless Telecommunications.'' This 
definition provides that a small entity is any such entity employing no 
more than 1,500 persons.\115\ The Commission does not require PLMR 
licensees to disclose information about number of employees, so the 
Commission does not have information that could be used to determine 
how many PLMR licensees constitute small entities under this 
definition. Moreover, because PMLR licensees generally are not in the 
business of providing cellular or other wireless telecommunications 
services but instead use the licensed facilities in support of other 
business activities, we are not certain that the Cellular and Other 
Wireless Telecommunications

[[Page 43857]]

category is appropriate for determining how many PLMR licensees are 
small entities for this analysis. Rather, it may be more appropriate to 
assess PLMR licensees under the standards applied to the particular 
industry subsector to which the licensee belongs.\116\
---------------------------------------------------------------------------

    \115\ See 13 CFR 121.201, NAICS code 517212.
    \116\ See generally 13 CFR 121.201.
---------------------------------------------------------------------------

    39. The Commission's 1994 Annual Report on PLMRs \117\ indicates 
that at the end of fiscal year 1994, there were 1,087,267 licensees 
operating 12,481,989 transmitters in the PLMR bands below 512 MHz. 
Because any entity engaged in a commercial activity is eligible to hold 
a PLMR license, the revised rules in this context could potentially 
impact every small business in the United States.
---------------------------------------------------------------------------

    \117\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at para. 116.
---------------------------------------------------------------------------

    40. Fixed Microwave Services. Fixed microwave services include 
common carrier,\118\ private operational-fixed,\119\ and broadcast 
auxiliary radio services.\120\ 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 small 
business size standard for the category ``Cellular and Other 
Telecommunications,'' which is 1,500 or fewer employees.\121\ The 
Commission does not have data specifying the number of these licensees 
that have more than 1,500 employees, and thus are unable at this time 
to 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 licensees 
and up to 61,670 private operational-fixed 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 noted, 
however, that the common carrier microwave fixed licensee category 
includes some large entities.
---------------------------------------------------------------------------

    \118\ See 47 CFR 101 et seq. (formerly, part 21 of the 
Commission's rules) for common carrier fixed microwave services.
    \119\ 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.
    \120\ Auxiliary Microwave Service is governed by part 74 of 
Title 47 of the Commission's rules. See 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.
    \121\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
---------------------------------------------------------------------------

    41. 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.\122\ 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.\123\ 
The SBA has approved these small business size standards.\124\ 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 polices adopted herein.
---------------------------------------------------------------------------

    \122\ 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).
    \123\ Id.
    \124\ 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) (VoIP); See 
Letter to Margaret Wiener, Chief, Auctions and Industry Analysis 
Division, Wireless Telecommunications Bureau; Federal Communications 
Commission, from Hector Barreto, Administrator, Small Business 
Administration, dated January 18, 2002 (WTB).
---------------------------------------------------------------------------

    42. 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.\125\ The auction of the 986 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.\126\ 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.\127\ The SBA has approved these small 
business size standards in the context of LMDS auctions.\128\ 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 32 small 
and very small business winning that won 119 licenses.
---------------------------------------------------------------------------

    \125\ See Rulemaking in Amend parts 1, 2, 21, 25, of the 
Commission's rules to Redesignate the 27.5-29.5 GHz Frequency Band, 
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and 
Policies for Local Multipoint Distribution Service and for Fixed 
Satellite Services, Second Report and Order, Order on 
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC 
Rcd 12545, 12689-90, para. 348 (1997).
    \126\ See Rulemaking to Amend parts 1, 2, 21, 25, of the 
Commission's rules to Redesignate the 27.5-29.5 GHz Frequency Band, 
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and 
Policies for Local Multipoint Distribution Service and for Fixed 
Satellite Services, Second Report and Order, Order on 
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC 
Rcd 12545, 12689-90, para. 348 (1997).
    \127\ See Rulemaking to Amend parts 1, 2, 21, 25, of the 
Commission's rules to Redesignate the 27.5-29.5 GHz Frequency Band, 
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and 
Policies for Local Multipoint Distribution Service and for Fixed 
Satellite Services, Second Report and Order, Order on 
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC 
Rcd 12545, 12689-90, para. 348 (1997).
    \128\ See Letter to Dan Phythyon, Chief, Wireless 
Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, 
SBA (Jan. 6, 1998).
---------------------------------------------------------------------------

    43. 218-219 MHz Service. The first auction of 218-219 MHz 
(previously referred to as the Interactive and Video Data Service or 
IVDS) spectrum resulted in 178 entities winning licenses for 594 
Metropolitan Statistical Areas (MSAs).\129\ Of the 594 licenses, 567 
were won by 167 entities qualifying as a small business. For that 
auction, we defined a small business as an entity that, together with 
its affiliates, has no more than a $6 million net worth and, after 
federal income taxes (excluding any carry over losses), has no more 
than $2 million in annual profits each year for the previous two 
years.\130\ In the 218-219 MHz Report and Order and Memorandum Opinion 
and Order, we defined a small business as an entity that, together with 
its affiliates and persons or entities that hold interests in such an 
entity and their affiliates, has average annual gross revenues not 
exceeding $15 million for the preceding three years.\131\ A very small 
business is

[[Page 43858]]

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 exceeding $3 million for the 
preceding three years.\132\ The SBA has approved of these 
definitions.\133\ At this time, we cannot estimate the number of 
licenses that will be won by entities qualifying as small or very small 
businesses under our rules in future auctions of 218-219 MHz spectrum. 
Given the success of small businesses in the previous auction, and the 
prevalence of small businesses in the subscription television services 
and message communications industries, we assume for purposes of this 
analysis that in future auctions, many, and perhaps all, of the 
licenses may be awarded to small businesses.
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    \129\ See ``Interactive Video and Data Service (IVDS) 
Applications Accepted for Filing.'' Public Notice, 9 FCC Rcd 6227 
(1994).
    \130\ Implementation of section 309(j) of the Communications 
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330 
(1994).
    \131\ Amendment of part 95 of the Commission's rules to Provide 
Regulatory Flexibility in the 218-219 MHz Service, Report and Order 
and Memorandum Opinion and Order, 15 FCC Rcd 1497 (1999).
    \132\ Id.
    \133\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
January 6, 1998.
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    44. Location and Monitoring Service (LMS). Multilateration LMS 
systems use non-voice radio techniques to determine the location and 
status of mobile radio units. For purposes of auctioning LMS licenses, 
the Commission has defined ``small business'' as an entity that, 
together with controlling interests and affiliates, has average annual 
gross revenues for the preceding three years not exceeding $15 
million.\134\ A ``very small business'' is defined as an entity that, 
together with controlling interests and affiliates, has average annual 
gross revenues for the preceding three years not exceeding $3 
million.\135\ These definitions have been approved by the SBA.\136\ An 
auction for LMS licenses commenced on February 23, 1999, and closed on 
March 5, 1999. Of the 528 licenses auctioned, 289 licenses were sold to 
four small businesses. We cannot accurately predict the number of 
remaining licenses that could be awarded to small entities in future 
LMS auctions.
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    \134\ Amendment of part 90 of the Commission's rules to Adopt 
Regulations for Automatic Vehicle Monitoring Systems, Second Report 
and Order, 13 FCC Rcd 15182, 15192 para. 20 (1998); see also 47 CFR 
90.1103.
    \135\ Amendment of part 90 of the Commission's rules to Adopt 
Regulations for Automatic Vehicle Monitoring Systems, Second Report 
and Order, 13 FCC Rcd at 15192, para. 20; see also 47 CFR 90.1103.
    \136\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
February 22, 1999.
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    45. Rural Radiotelephone Service. The Commission has not adopted a 
size standard for small businesses specific to the Rural Radiotelephone 
Service.\137\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio System (BETRS).\138\ The 
Commission uses the SBA's small business size standard applicable to 
``Cellular and Other Wireless Telecommunications,'' i.e., an entity 
employing no more than 1,500 persons.\139\ There are approximately 
1,000 licensees in the Rural Radiotelephone Service, and the Commission 
estimates that there are 500 or fewer small entity licensees in the 
Rural Radiotelephone Service that may be affected by the rules and 
policies adopted herein.
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    \137\ The service is defined in 22.99 of the Commission's rules, 
47 CFR 22.99.
    \138\ BETRS is defined in Sec.  22.757 and 22.759 of the 
Commission's rules, 47 CFR 22.757 and 22.759.
    \139\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
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    46. Air-Ground Radiotelephone Service. The Commission has not 
adopted a small business size standard specific to the Air-Ground 
Radiotelephone Service.\140\ 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.\141\ There are fewer than 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.
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    \140\ The service is defined in Sec.  22.99 of the Commission's 
rules, 47 CFR 22.99.
    \141\ 13 CFR 121.201, NAICS codes 513322 (changed to 517212 in 
October 2002).
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    47. 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.\142\ 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.\143\ 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.
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    \142\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \143\ 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).
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    48. Offshore Radiotelephone Service. This service operates on 
several ultra high frequencies (UHF) television broadcast channels that 
are not used for television broadcasting in the coastal areas of states 
bordering the Gulf of Mexico.\144\ There is presently one licensee 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.\145\ Under that SBA small business size standard, a business 
is small if it has 1,500 or fewer employees.\146\
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    \144\ This service is governed by subpart I of part 22 of the 
Commission's rules. See 47 CFR 22.1001-22.1037.
    \145\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \146\ Id.
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    49. Multiple Address Systems (MAS). Entities using MAS spectrum, in 
general, fall into two categories: (1) Those using the spectrum for 
profit-based uses, and (2) those using the spectrum for private 
internal uses. With respect to the first category, the Commission 
defines ``small entity'' for MAS licenses as an entity that has average 
gross revenues of less than $15 million in the three previous calendar 
years.\147\ ``Very small business'' is defined as an entity that, 
together with

[[Page 43859]]

its affiliates, has average gross revenues of not more than $3 million 
for the preceding three calendar years.\148\ The SBA has approved of 
these definitions.\149\ The majority of these entities will most likely 
be licensed in bands where the Commission has implemented a geographic 
area licensing approach that would require the use of competitive 
bidding procedures to resolve mutually exclusive applications. The 
Commission's licensing database indicates that, as of January 20, 1999, 
there were a total of 8,670 MAS station authorizations. Of these, 260 
authorizations were associated with common carrier service. In 
addition, an auction for 5,104 MAS licenses in 176 EAs began November 
14, 2001, and closed on November 27, 2001.\150\ Seven winning bidders 
claimed status as small or very small businesses and won 611 licenses.
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    \147\ See Amendment of the Commission's rules Regarding Multiple 
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, para. 
123 (2000).
    \148\ Id.
    \149\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
June 4, 1999.
    \150\ See ``Multiple Address Systems Spectrum Auction Closes,'' 
Public Notice, 16 FCC Rcd 21011 (2001).
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    50. With respect to the second category, which consists of entities 
that use, or seek to use, MAS spectrum to accommodate internal 
communications needs, we note that MAS serves an essential role in a 
range of industrial, safety, business, and land transportation 
activities. MAS radios are used by companies of all sizes, operating in 
virtually all U.S. business categories, and by all types of public 
safety entities. For the majority of private internal users, the 
definitions developed by the SBA would be more appropriate. The 
applicable definition of small entity in this instance appears to be 
the ``Cellular and Other Wireless Telecommunications'' definition under 
the SBA rules. This definition provides that a small entity is any 
entity employing no more than 1,500 persons.\151\ The Commission's 
licensing database indicates that, as of January 20, 1999, of the 8,670 
total MAS station authorizations, 8,410 authorizations were for private 
radio service, and of these, 1,433 were for private land mobile radio 
service.
---------------------------------------------------------------------------

    \151\ See 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    51. Incumbent 24 GHz 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.\152\ According to U.S. Census Bureau data for 1997, there were 
977 firms in this category, total, that operated for the entire 
year.\153\ 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.\154\ 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 \155\ 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.
---------------------------------------------------------------------------

    \152\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \153\ 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 October 2000).
    \154\ 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.''
    \155\ Teligent acquired the DEMS licenses other than TRW in the 
24 GHz band whose license has been modified to require relocation to 
the 24 GHz band.
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    52. Future 24 GHz Licensees. With respect to new applicants in the 
24 GHz band, we have defined ``small business'' as an entity that, 
together with controlling interests and affiliates, has average annual 
gross revenues for the three preceding years not exceeding $15 
million.\156\ ``Very small business'' in the 24 GHz band is defined as 
an entity that, together with controlling interests and affiliates, has 
average gross revenues not exceeding $3 million for the preceding three 
years.\157\ The SBA has approved these definitions.\158\ The Commission 
will not know how many licensees will be small or very small businesses 
until the auction, if required, is held.
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    \156\ 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, para. 77 (2000) (24 GHz Report and Order); see 
also 47 CFR 101.538(a)(2).
    \157\ 24 GHz Report and Order, 15 FCC Rcd at 16967, para. 77; 
see also 47 CFR 101.538(a)(1).
    \158\ See Letter to Margaret W. Wiener, Deputy Chief, Auctions 
and Industry Analysis Division, Wireless Telecommunications Bureau, 
Federal Communications Commission, from Gary M. Jackson, Assistant 
Administrator, Small Business Administration, dated July 28, 2000.
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    53. Multipoint Distribution Service (now known as Broadband Radio 
Service), Multichannel Multipoint Distribution Service, and 
Instructional Television Fixed Service. Multichannel Multipoint 
Distribution Service (MMDS) 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).\159\ In connection with 
the 1996 MDS auction, the Commission defined ``small business'' as an 
entity that, together with its affiliates, has average gross annual 
revenues that are not more than $40 million for the preceding three 
calendar years.\160\ The SBA has approved of this standard.\161\ The 
MDS auction resulted in 67 successful bidders obtaining licensing 
opportunities for 493 Basic Trading Areas (BTAs).\162\ Of the 67 
auction winners, 61 claimed status as a small business. At this time, 
we estimate that of the 61 small business MDS auction winners, 48 
remain small business licensees. In addition to the 48 small businesses 
that hold BTA authorizations, there are approximately 392 incumbent MDS 
licensees that have gross revenues that are not more than $40 million 
and are thus considered small entities.\163\
---------------------------------------------------------------------------

    \159\ 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, Report and Order, 10 FCC Rcd 9589, 9593, para. 
7 (1995) (MDS Auction R&O).
    \160\ 47 CFR 21.961(b)(1).
    \161\ See Letter to Margaret Wiener, chief, Auctions and 
Industry Analysis Division, Wireless Telecommunications Bureau, 
Federal Communications Bureau, from Gary Jackson, Assistant 
Administrator for Size Standards, Small Business Administration, 
dated March 20, 2003 (noting approval of $40 million size standard 
for MDS auction).
    \162\ Basic Trading Areas (BTAs) were designed by Rand McNally 
and are the geographic areas by which MDS was auctioned and 
authorized. See MDS Auction R&O, 10 FCC Rcd at 9608, para. 34 
(1995).
    \163\ 47 U.S.C. 309(j). Hundreds of stations were licensed to 
incumbent MDS licensees prior to implementation of section 309(j) of 
the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business 
size standard for ``other telecommunications'' (annual receipts of 
$12.5 million or less). See 13 CFR 121.201, NAICS code 517910.
---------------------------------------------------------------------------

    54. In addition, the SBA has developed a small business size 
standard for Cable and Other Program Distribution,\164\ which includes 
all such companies generating $12.5 million or less in annual 
receipts.\165\ 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

[[Page 43860]]

year.\166\ 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.\167\ Consequently, we estimate that the 
majority of providers in this service category are small businesses 
that may be affected by the rules and policies, herein adopted.
---------------------------------------------------------------------------

    \164\ 13 CFR 121.201, NAICS code 517510.
    \165\ Id.
    \166\ U.S. Census Bureau, 1997 Economic Census, Subject Series; 
Information, ``Establishment and Firm Size (including Legal Form of 
Organization),'' Table 4 (issued October 2000).
    \167\ Id.
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    55. Finally, while SBA approval for a Commission-defined small 
business size standard applicable to ITFS is pending, educational 
institutions are included in this analysis as small entities.\168\ 
There are currently 2,032 ITFS licensees, and all but 100 of these 
licenses are held by educational institutions. Thus, we tentatively 
conclude that at least 1,932 ITFS licensees are small businesses.
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    \168\ In addition, the term, ``small entity'' under 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.
---------------------------------------------------------------------------

    56. 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.\169\ Business concerns 
included in this industry are those ``primarily engaged in broadcasting 
images together with sound.'' \170\ According to Commission staff 
review of the BIA Publications, Inc. Master Access Television Analyzer 
Database as of May 16, 2003, about 814 of the 1,370 commercial 
television stations (December 31, 2005) 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 \171\ 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 2,145 low power television 
stations (LPTV).\172\ Given the nature of this service, we will presume 
that all LPTV licensees qualify as small entities under the SBA 
definition.
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    \169\ 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).
    \170\ See OMB, North American Industry Classification System: 
United States, 1997, at 509 (1997) (NAICS code 513120, which was 
changed to code 1520 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 Viceo 
Industries.
    \171\ 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).
    \172\ FCC News Release, ``Broadcast Station Totals as of 
December 31, 2005.''
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    57. 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.
    58. Radio Broadcasting. The SBA defines a radio broadcast entity 
that has $6 million or less in annual receipts as a small 
business.\173\ Business concerns included in this industry are those 
``primarily engaged in broadcasting aural programs by radio to the 
public.'' \174\ 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 10,988 commercial radio stations 
(December 31, 2005) 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 \175\ are 
included.\176\ Our estimate, therefore likely overstates the number of 
small businesses that might be affected by our action.
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    \173\ 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).
    \174\ Id.
    \175\ ``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).
    \176\ ``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).
---------------------------------------------------------------------------

    59. 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.\177\
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    \177\ 13 CFR 121.201, NAICS codes 513111 and 513112.
---------------------------------------------------------------------------

    60. The Commission estimates that there are approximately 3,995 FM 
translators and boosters.\178\ 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.\179\
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    \178\ FCC News Release, ``Broadcast Station Totals as of 
December 31, 2005.''
    \179\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    61. Cable and Other Program Distribution. This category includes 
cable systems operators, closed circuit television services, direct 
broadcast satellite services, multipoint distribution systems, 
satellite master antenna systems, and subscription television services. 
The SBA has developed a small business size standard for this census 
category, which includes all such companies generating $12.5 million or 
less in revenue

[[Page 43861]]

annually.\180\ 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.\181\ 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, the Commission 
estimates that the majority of providers in this service category are 
small businesses that may be affected by the rules and policies, herein 
adopted.
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    \180\ 13 CFR 121.201, NAICS code 513220 (changed to 517510 in 
October 2002).
    \181\ 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).
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    62. Cable System Operators (Rate Regulation Standard). The 
Commission has developed its own small business size standard for cable 
system operators, for purposes of rate regulation. Under the 
Commission's rules, a ``small cable company'' is one serving fewer than 
400,000 subscribers nationwide.\182\ The most recent estimates indicate 
that there were 1,439 cable operators who qualified as small cable 
system operators at the end of 1995.\183\ 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, the Commission estimates that 
there are now fewer than 1,439 small entity cable system operators that 
may be affected by the rules and policies, herein adopted.
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    \182\ 47 CFR 76.901(e). The Commission developed this definition 
based on its determination that a small cable system operator is one 
with annual revenues of $100 million or less. Implementation of 
Sections of the 1992 Cable Act: Rate Regulation, Sixth Report and 
Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393 (1995).
    \183\ Paul Kagan Associates, Inc., Cable TV Investor, February 
29, 1996 (based on figures for December 30, 1995).
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    63. Cable System Operators (Telecom Act Standard). The 
Communications Act of 1934, as amended, also contains a size standard 
for small cable system operators, which is ``a cable operator that, 
directly or through an affiliate, serves in the aggregate fewer than 1 
percent of all subscribers in the United States and is not affiliated 
with any entity or entities whose gross annual revenues in the 
aggregate exceed $250,000,000.'' \184\ The Commission has determined 
that there are 63,000,000 subscribers in the United States.\185\ 
Therefore, an operator serving fewer than 630,000 subscribers shall be 
deemed a small operator, if its annual revenues, when combined with the 
total annual revenues of all its affiliates, do not exceed $250 million 
in the aggregate.\186\ Based on available data, the Commission 
estimates that the number of cable operators serving 630,000 
subscribers or fewer, totals 1,450.\187\ The Commission neither 
requests nor collects information on whether cable system operators are 
affiliated with entities whose gross annual revenues exceed $250 
million,\188\ and therefore are unable, at this time, to estimate more 
accurately the number of cable system operators that would qualify as 
small cable operators under the size standard contained in the 
Communications Act of 1934.
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    \184\ 47 U.S.C. 543(m)(2).
    \185\ See FCC Announces New Subscriber Count for the Definition 
of Small Cable Operator, Public Notice, DA 01-158 (January 24, 
2001).
    \186\ 47 CFR 76.901(f).
    \187\ See FCC Announces New Subscriber Count for the Definition 
of Small Cable Operators, Public Notice, DA 01-0158 (released 
January 24, 2001).
    \188\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's 
finding that the operator does not qualify as a small cable operator 
pursuant to Sec.  76.901(f) of the Commission's rules. See 47 CFR 
76.909(b).
---------------------------------------------------------------------------

    64. Open Video Services. Open Video Service (OVS) systems provide 
subscription services.\189\ The SBA has created a small business size 
standard for Cable and Other Program Distribution.\190\ This standard 
provides that a small entity is one with $12.5 million or less in 
annual receipts. The Commission has certified approximately 25 OVS 
operators to serve 75 areas, and some of these are currently providing 
service.\191\ Affiliates of Residential Communications Network, Inc. 
(RCN) received approval to operate OVS systems in New York City, 
Boston, Washington, DC, and other areas. RCN has sufficient revenues to 
assure that they do not qualify as a small business entity. Little 
financial information is available for the other entities that are 
authorized to provide OVS and are not yet operational. Given that some 
entities authorized to provide OVS service have not yet begun to 
generate revenues, the Commission concludes that up to 24 OVS operators 
(those remaining) might qualify as small businesses that may be 
affected by the rules and policies, herein adopted.
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    \189\ See 47 U.S.C. 573.
    \190\ 13 CFR 121.201, NAICS code 513220 (changed to 517510 in 
October 2002).
    \191\ See http://www.fcc.gov/csb/ovs/csovscer.html (current as 
of March 2002).
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    65. Cable Television Relay Service. This service includes 
transmitters generally used to relay cable programming within cable 
television system distribution systems. The SBA has defined a small 
business size standard for Cable and Other Program Distribution, 
consisting of all such companies having annual receipts of no more than 
$12.5 million.\192\ According to Census Bureau data for 1997, there 
were 1,311 firms in the industry category Cable and Other Program 
Distribution, total, that operated for the entire year.\193\ Of this 
total, 1,180 firms had annual receipts of $10 million or less, and an 
additional 52 firms had receipts of $10 million or more but less than 
$25 million.\194\ Thus, under this standard, we estimate that the 
majority of providers in this service category are small businesses 
that may be affected by the rules and policies, herein adopted.
---------------------------------------------------------------------------

    \192\ 13 CFR 121.201, NAICS code 517510.
    \193\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 4 (issued October 2000).
    \194\ Id.
---------------------------------------------------------------------------

    66. Multichannel Video Distribution and Data Service. MVDDS is a 
terrestrial fixed microwave service operating in the 12.2-12.7 GHz 
band. No auction has yet been held in this service, although an action 
has been scheduled for January 14, 2004.\195\ Accordingly, there are no 
licensees in this service.
---------------------------------------------------------------------------

    \195\ ``Auctions of Licenses in the Multichannel Video 
Distribution and Data Service Rescheduled for January 14, 2004,'' 
Public Notice, DA 03-2354 (August 28, 2003).
---------------------------------------------------------------------------

    67. Amateur Radio Service. These licensees are believed to be 
individuals, and therefore are not small entities.
    68. Aviation and Marine 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.\196\ 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

[[Page 43862]]

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 f or 
the preceding three years not to exceed $3 million dollars.\197\ 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.
---------------------------------------------------------------------------

    \196\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \197\ Amendment of the Commission's rules Concerning Maritime 
Communications, Third Report and Order and Memorandum Opinion and 
Order, 13 FCC Rcd 19853 (1998).
---------------------------------------------------------------------------

    69. Personal Radio Services. Personal radio services provide short-
range, low power radio for personal communications, radio signaling, 
and business communications not provided for in other services. The 
Personal Radio Services include spectrum licensed under Part 95 of our 
rules.\198\ These services include Citizen Band Radio Service (CB), 
General Mobile Radio Service (GMRS), Radio Control Radio Service (R/C), 
Family Radio Service (FRS), Wireless Medical Telemetry Service (WMTS), 
Medical Implant Communications Service (MICS), Low Power Radio Service 
(LPRS), and Multi-Use Radio Service (MURS).\199\ There are a variety of 
methods used to license the spectrum in these rule parts, from 
licensing by rule, to conditioning operation on successful completion 
of a required test, to site-based licensing, to geographic area 
licensing. Under the RFA, the Commission is required to make a 
determination of which small entities are directly affected by the 
rules being proposed. Since all such entities are wireless, we apply 
the definition of cellular and other wireless telecommunications, 
pursuant to which a small entity is defined as employing 1,500 or fewer 
persons.\200\ Many of the licensees in these services are individuals, 
and thus are not small entities. In addition, due to the mostly 
unlicensed and shared nature of the spectrum utilized in many of these 
services, the Commission lacks direct information upon which to base an 
estimation of the number of small entities under an SBA definition that 
might be directly affected by the rules, herein adopted.
---------------------------------------------------------------------------

    \198\ 47 CFR part 90.
    \199\ The Citizens Band Radio Service, General Mobile Radio 
Service, Radio Control Radio Service, Family Radio Service, Wireless 
Medical Telemetry Service, Medical Implant Communications Service, 
Low Power Radio Service, and Multi-Use Radio Service are governed by 
subpart D, subpart A, subpart C, subpart B, subpart H, subpart I, 
subpart G, and subpart J, respectively, of part 95 of the 
Commission's rules. See generally 47 CFR part 95.
    \200\ 13 CFR 121.201, NAICS Code 517212.
---------------------------------------------------------------------------

    70. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, highway 
maintenance, and emergency medical services.\201\ There are a total of 
approximately 127,540 licensees in these services. Governmental 
entities \202\ as well as private businesses comprise the licensees for 
these services. All governmental entities with populations of less than 
50,000 fall within the definition of a small entity.\203\
---------------------------------------------------------------------------

    \201\ With the exception of the special emergency service, these 
services are governed by subpart B of part 90 of the Commission's 
rules, 47 CFR 90.15-90.27. The police service includes approximately 
27,000 licensees that serve state, county, and municipal enforcement 
through telephony (voice), telegraphy (code) and teletype and 
facsimile (printed material). The fire radio service includes 
approximately 23,000 licensees comprised of private volunteer or 
professional fire companies as well as units under governmental 
control. The local government service that is presently comprised of 
approximately 41,000 licensees that are state, county, or municipal 
entities that use the radio for official purposes not covered by 
other public safety services. There are approximately 7,000 
licensees within the forestry service which is comprised of 
licensees from state departments of conservation and private forest 
organizations who set up communications networks among fire lookout 
towers and ground crews. The approximately 9,000 state and local 
governments that are licensed to highway maintenance service provide 
emergency and routine communications to aid other public safety 
services to keep main roads safe for vehicular traffic. The 
approximately 1,000 licensees in the Emergency Medical Radio Service 
(EMRS) use the 39 channels allocated to this service for emergency 
medical service communications related to the delivery of emergency 
medical treatment. 47 CFR 90.15-90.27. The approximately 20,000 
licensees in the special emergency service include medical services, 
rescue organizations, veterinarians, handicapped persons, disaster 
relief organizations, school buses, beach patrols, establishments in 
isolated areas, communications standby facilities, and emergency 
repair of public communications facilities. 47 CFR 90.33-90.55.
    \202\ 47 CFR 1.1162.
    \203\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

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

    71. 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.
---------------------------------------------------------------------------

    72. 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.
    73. 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

[[Page 43863]]

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 \
---------------------------------------------------------------------------

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

    74. 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

    75. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives: (1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities. As described in Section 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.
    76. The Omnibus Appropriations Act for FY 2006, Public Law 109-108, 
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) 2006.\210\ As noted, we seek 
comment on the proposed methodology for implementing these statutory 
requirements and any other potential impact of these proposals on small 
entities.
---------------------------------------------------------------------------

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

    77. We have previously used cost accounting data for computation of 
regulatory fees, but 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 
using 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.
    78. Several categories of licensees and regulatees are exempt from 
payment of regulatory fees. See, e.g., footnote 204, supra.
    79. 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.
    80. Report to Congress: The Commission will send a copy of this 
FRFA, 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 2006

    In order to calculate individual service fees for FY 2006, we 
adjusted FY 2005 payment units for each service to more accurately 
reflect expected FY 2006 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. The databases we 
consulted include the Commission's Universal Licensing System (ULS), 
International Bureau Filing System (IBFS), Consolidated Database System 
(CDBS), and the Cable Operations and Licensing System (COALS), as well 
as reports generated within the Commission such as the Wireline 
Competition Bureau's Trends in Telephone Service and the Wireless 
Telecommunications Bureau's Numbering Resource Utilization Forecast.
    We tried to obtain verification for these estimates from multiple 
sources and, in all cases; we compared FY 2006 estimates with actual FY 
2005 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 2006 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 2006 payment units are based 
on FY 2005 actual payment units, it does not necessarily mean that our 
FY 2006 projection is exactly the same number as FY 2005. It means that 
we have either rounded the FY 2006 number or adjusted it slightly to 
account for these variables.

------------------------------------------------------------------------
         Fee category              Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave,  Based on Wireless Telecommunications
 218-219 MHz, Marine (Ship &    Bureau (WTB) projections of new
 Coast), Aviation (Aircraft &   applications and renewals taking into
 Ground), GMRS, Amateur         consideration existing Commission
 Vanity Call Signs, Domestic    licensee data bases. Aviation (Aircraft)
 Public Fixed.                  and Marine (Ship) estimates have been
                                adjusted to take into consideration the
                                licensing of portions of these services
                                on a voluntary basis.

[[Page 43864]]

 
CMRS Mobile Services.........  Based on Wireless Telecommunications
                                Bureau estimates.
CMRS Messaging Services......  Based on Wireless Telecommunications
                                Bureau Competition Report estimates.
AM/FM Radio Stations.........  Based on estimates derived from CDBS, as
                                adjusted for exemptions, and actual FY
                                2005 payment units.
UHF/VHF Television Stations..  Based on data listed in the 2006 Edition
                                of the Television & Cable Factbook, as
                                well as actual FY 2005 payment units.
AM/FM/TV Construction Permits  Based on estimates derived from CDBS, as
                                well as actual FY 2005 payment units.
LPTV, Translators and          Based on actual FY 2005 payment units.
 Boosters.
Broadcast Auxiliaries........  Based on actual FY 2005 payment units.
BRS (formerly MDS/MMDS)......  Based on Wireless Telecommunications
                                Bureau estimates and actual FY 2005
                                payment units.
Cable Television Relay         Based on actual FY 2005 payment units.
 Service (CARS) Stations.
Cable Television System        Based on industry estimates of subscriber
 Subscribers.                   counts, and actual FY 2005 payment
                                units.
Interstate Telecommunication   Based on actual FY 2005 interstate
 Service Providers.             revenues reported on Telecommunications
                                Reporting Worksheet, adjusted for FY
                                2006 revenue growth/decline for
                                industry, and projections by the
                                Wireline Competition Bureau.
Earth Stations...............  Based on actual FY 2005 payment estimates
                                and projected FY 2006 units.
Space Stations (GSOs & NGSOs)  Based on International Bureau licensee
                                data base estimates.
International Bearer Circuits  Based on FY 2005 actual units.
International HF Broadcast     Based on International Bureau estimates.
 Stations, International
 Public Fixed Radio Service.
------------------------------------------------------------------------

Attachment C--Calculation of FY 2006 Revenue Requirements and Pro-Rata 
Fees

    Regulatory fees for the categories shaded in gray are collected by 
the Commission in advance to cover the term of the license and are 
submitted along with the application at the time the application is 
filed.

[[Page 43865]]



------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                            Pro-rated FY     Computed new FY   Rounded new FY
                  Fee category                           FY 2006 payment units              Years        FY 2005 revenue    2006 revenue     2006 regulatory   2006 regulatory  Expected FY 2006
                                                                                                            estimate        requirement *          fee               fee             revenue
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)...........................  2,200.............................                10           370,000           393,725                18                20           440,000
PLMRS (Shared use)..............................  25,000............................                10         2,300,000         2,447,482                10                10         2,500,000
Microwave.......................................  2,000.............................                10         1,560,000         1,660,031                83                85         1,700,000
218-219 MHz (Formerly IVDS).....................  3.................................                10             1,500             1,596                53                55             1,650
Marine (Ship)...................................  8,000.............................                10           700,000           744,886                 9                10           800,000
GMRS............................................  17,000............................                 5           525,000           558,664                 7                 5           425,000
Aviation (Aircraft).............................  6,000.............................                10           370,000           393,725                 7                 5           300,000
Marine (Coast)..................................  600...............................                10           100,000           106,412                18                20           120,000
Aviation (Ground)...............................  1,500.............................                10           120,000           127,695                 9                10           150,000
Amateur Vanity Call Signs.......................  8,500.............................                10           166,443           177,116              2.08              2.08           177,116
AM Class A......................................  69................................                 1           202,950           217,032             3,145             3,150           217,350
AM Class B......................................  1,612.............................                 1         2,467,600         2,638,824             1,637             1,625         2,619,500
AM Class C......................................  950...............................                 1           860,400           920,102               969               970           921,500
AM Class D......................................  1,769.............................                 1         2,874,625         3,074,092             1,738             1,750         3,095,750
FM Classes A, B1 & C3...........................  3,068.............................                 1         6,013,875         6,518,302             2,125             2,125         6,519,500
FM Classes B, C, C0, C1 & C2....................  2,908.............................                 1         7,333,425         7,925,998             2,726             2,725         7,924,300
AM Construction Permits.........................  95................................                 1            35,030            37,461               394               395            37,525
FM Construction Permits \1\.....................  200...............................                 1           267,300           115,000               575               575           115,000
Satellite TV....................................  123...............................                 1           132,225           141,400             1,150             1,150           141,450
Satellite TV Construction Permit................  3.................................                 1             1,605             1,716               572               570             1,710
VHF Markets 1-10................................  44................................                 1         2,664,925         2,849,841            64,769            64,775         2,850,100
VHF Markets 11-25...............................  61................................                 1         2,725,175         2,914,272            47,775            47,775         2,914,275
VHF Markets 26-50...............................  75................................                 1         2,305,800         2,465,797            32,877            32,875         2,465,625
VHF Markets 51-100..............................  116...............................                 1         2,218,400         2,372,332            20,451            20,450         2,372,200
VHF Remaining Markets...........................  208...............................                 1           975,875         1,043,590             5,017             5,025         1,045,200
VHF Construction Permits........................  9.................................                 1            28,575            30,558             3,395             3,400            30,600
UHF Markets 1-10................................  89................................                 1         1,682,100         1,846,288            20,745            20,750         1,846,750
UHF Markets 11-25...............................  80................................                 1         1,384,475         1,528,011            19,100            19,100         1,528,000
UHF Markets 26-50...............................  117...............................                 1         1,155,750         1,283,415            10,969            10,975         1,284,075
UHF Markets 51-100..............................  168...............................                 1           992,250         1,091,308             6,496             6,500         1,092,000
UHF Remaining Markets...........................  187...............................                 1           312,225           333,890             1,786             1,775           331,925
UHF Construction Permits \1\....................  19................................                 1           192,950            33,725             1,775             1,775            33,725
Broadcast Auxiliaries...........................  24,000............................                 1           250,000           267,347                11                10           240,000
LPTV/Translators/Boosters.......................  2,900.............................                 1         1,145,500         1,224,985               422               420         1,218,000
CARS Stations...................................  850...............................                 1           139,500           149,180               176               175           148,750
Cable TV Systems................................  63,000,000 subscribers............                 1        46,800,000        50,047,394             0.794              0.79        49,770,000
Interstate Telecommunication Service Providers..  $53,100,000,000...................                 1       131,220,000       140,325,193        0.00264266           0.00264       140,184,000
CMRS Mobile Services (Cellular/Public Mobile)...  210,000,000 subscribers...........                 1        39,380,000        42,547,534             0.203              0.20        42,000,000
CMRS Messaging Services.........................  6,500,000 subscribers.............                 1           896,000           523,167              0.08              0.08           520,000
BRS \2\.........................................  1,767.............................                 1           459,000           489,416               277               275           485,925
LMDS............................................  330...............................                 1            84,150            91,422               277               275            90,750
International Bearer Circuits 64kb circuits.....  5,300,000.........................                 1         7,261,000         7,764,832              1.47              1.47         7,791,000
International Public Fixed......................  1.................................                 1             1,800             1,925             1,925             1,925             1,925
Earth Stations..................................  3,500.............................                 1           697,000           745,364               213               215           752,500
International HF Broadcast......................  5.................................                 1             3,825             4,090               818               820             4,100
Space Stations (Geostationary)..................  87................................                 1         9,065,925         9,694,998           111,437           111,425         9,693,975
Space Stations (Non-Geostationary...............  6.................................                 1           674,550           721,356           120,226           120,225           721,350
* Total Estimated Revenue to be Collected.......  ..................................  ................       281,118,728       300,592,490  ................  ................       299,624,101
* Total Revenue Requirement.....................  ..................................  ................       280,098,000       298,771,000  ................  ................       298,771,000

[[Page 43866]]

 
Difference \4\..................................  ..................................  ................         1,020,728         1,821,490  ................  ................          853,101
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* 1.066665953 factor applied based on the amount Congress designated for recovery through regulatory fees (Public Law 109-108 and 47 U.S.C. 159(a)(2)). The factor also includes an additional
  $10 million to be collected to reduce the Nation's debt per section 3013 of Public Law 109-171.
\1\ The FM Construction Permit and the UHF Construction Permit revenues were adjusted to set the regulatory fee to an amount no higher than the lowest licensed fee for that class of service,
  which was reduced to $575 for FM Construction Permits and $1,775 for UHF Construction Permits.
\2\ MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of parts 1, 21, 73, 74 and 101 of the Commission's rules to Facilitate the Provision of Fixed and Mobile
  Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands et al, Report & Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169
  para. 6 (2004) (R&O and FNPRM).
\3\ The ``FY 2005 Revenue Estimate'' column was adjusted for the FM Construction Permit service category from $53,900 to $267,300 to reflect the correct percentage revenue allocation for this
  service category before the 6.67% increase in fees was applied. In this same column and for the same reason, the UHF Construction Permit service category was adjusted from $53,475 to
  $192,950.
\4\ Because of rounding, there are differences in the ``Expected FY 2006 Revenue'' column between the ``Total Estimated Revenue to be Collected'' and the ``Total Revenue Requirement.''


[[Page 43867]]

Attachment D--FY 2006 Schedule of Regulatory Fees

    Regulatory fees for the categories shaded in gray are collected by 
the Commission in advance to cover the term of the license and are 
submitted along with the application at the time the application is 
filed.

------------------------------------------------------------------------
                                                              Annual
                      Fee category                        regulatory fee
                                                             (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)....              20
Microwave (per license) (47 CFR part 101)...............              85
218-219 MHz (Formerly Interactive Video Data Service)                 55
 (per license) (47 CFR part 95).........................
Marine (Ship) (per station) (47 CFR part 80)............              10
Marine (Coast) (per license) (47 CFR part 80)...........              20
General Mobile Radio Service (per license) (47 CFR part                5
 95)....................................................
Rural Radio (47 CFR part 22) (previously listed under                 10
 the Land Mobile category)..............................
PLMRS (Shared Use) (per license) (47 CFR part 90).......              10
Aviation (Aircraft) (per station) (47 CFR part 87)......               5
Aviation (Ground) (per license) (47 CFR part 87)........              10
Amateur Vanity Call Signs (per call sign) (47 CFR part              2.08
 97)....................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts               .20
 20, 22, 24, 27, 80 and 90).............................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22,             .08
 24 and 90).............................................
Broadband Radio Service (formerly MMDS/MDS) (per                     275
 license) (47 CFR part 27)..............................
Local Multipoint Distribution Service (per call sign)                275
 (47 CFR, part 101).....................................
AM Radio Construction Permits...........................             395
FM Radio Construction Permits...........................             575
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10........................................          64,775
    Markets 11-25.......................................          47,775
    Markets 26-50.......................................          32,875
    Markets 51-100......................................          20,450
    Remaining Markets...................................           5,025
    Construction Permits................................           3,400
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10........................................          20,750
    Markets 11-25.......................................          19,100
    Markets 26-50.......................................          10,975
    Markets 51-100......................................           6,500
    Remaining Markets...................................           1,775
    Construction Permits................................           1,775
Satellite Television Stations (All Markets).............           1,150
Construction Permits--Satellite Television Stations.....             570
Low Power TV, Class A TV, TV/FM Translators & Boosters               420
 (47 CFR part 74).......................................
Broadcast Auxiliaries (47 CFR part 74)..................              10
CARS (47 CFR part 78)...................................             175
Cable Television Systems (per subscriber) (47 CFR part               .79
 76)....................................................
Interstate Telecommunication Service Providers (per               .00264
 revenue dollar)........................................
Earth Stations (47 CFR part 25).........................             215
Space Stations (per operational station in geostationary         111,425
 orbit) (47 CFR part 25) also includes DBS Service (per
 operational station) (47 CFR part 100).................
Space Stations (per operational system in non-                   120,225
 geostationary orbit) (47 CFR part 25)..................
International Bearer Circuits (per active 64KB circuit).            1.47
International Public Fixed (per call sign) (47 CFR part            1,925
 23)....................................................
International (HF) Broadcast (47 CFR part 73)...........             820
------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
                                      FY 2006 radio station regulatory fees
-----------------------------------------------------------------------------------------------------------------
                                                                                                      FM classes
         Population served           AM class A   AM class B   AM class C   AM class D   FM classes   B, C, C0,
                                                                                         A, B1 & C3    C1 & C2
----------------------------------------------------------------------------------------------------------------
<=25,000..........................          625          500          400          475          575          750
25,001-75,000.....................        1,225          950          600          725        1,150        1,325
75,001-150,000....................        1,850        1,200          800        1,200        1,575        2,450
150,001-500,000...................        2,775        2,025        1,200        1,425        2,450        3,200
500,001-1,200,000.................        4,000        3,100        2,000        2,375        3,875        4,700
1,200,001-3,000,00................        6,150        4,750        3,000        3,800        6,325        7,500
>3,000,000........................        7,375        5,700        3,800        4,750        8,050        9,750
----------------------------------------------------------------------------------------------------------------


[[Page 43868]]

Attachment E--Factors, Measurements and Calculations That Go Into 
Determining Station Signal Contours and Associated Population Coverages

AM Stations

    For stations with nondirectional daytime antennas, the theoretical 
radiation was used at all azimuths. For stations with directional 
daytime antennas, specific information on each day tower, including 
field ratio, phasing, spacing and orientation was retrieved, as well as 
the theoretical pattern root-mean-square of the radiation in all 
directions in the horizontal plane (RMS) figure milliVolt per meter 
(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 Sec. Sec.  73.150 
and 73.152 of the Commission's rules.\1\ Radiation values were 
calculated for each of 360 radials around the transmitter site. Next, 
estimated soil conductivity data was retrieved from a database 
representing the information in FCC Figure R3 \2\. Using the calculated 
horizontal radiation values, and the retrieved soil conductivity data, 
the distance to the principal community (5 mV/m) contour was predicted 
for each of the 360 radials. The resulting distance to principal 
community contours were used to form a geographical polygon. Population 
counting was accomplished by determining which 2000 block centroids 
were contained in the polygon. (A block centroid is the center point of 
a small area containing population as computed by the U.S. Census 
Bureau.) The sum of the population figures for all enclosed blocks 
represents the total population for the predicted principal community 
coverage area.
---------------------------------------------------------------------------

    \1\ 47 CFR 73.150 and 73.152.
    \2\ See Map of Estimated Effective Ground Conductivity in the 
United States, 47 CFR 73.190 Figure R3.
---------------------------------------------------------------------------

FM Stations

    The greater of the horizontal or vertical effective radiated power 
(ERP) (kW) and respective height above average terrain (HAAT) (m) 
combination was used. Where the antenna height above mean sea level 
(HAMSL) was available, it was used in lieu of the average HAAT figure 
to calculate specific HAAT figures for each of 360 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 Field Strength (50-50) propagation curves 
specified in 47 CFR 73.313 of the Commission's rules to predict the 
distance to the principal community (70 dBu (decibel above 1 microVolt 
per meter) or 3.17 mV/m) contour for each of the 360 radials.\3\ The 
resulting distance to principal community 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 principal community coverage 
area.
---------------------------------------------------------------------------

    \3\ 47 CFR 73.313.
---------------------------------------------------------------------------

Attachment F--FY 2005 Schedule of Regulatory Fees

------------------------------------------------------------------------
                                                              Annual
                                                            regulatory
                      Fee category                          fee  (U.S.
                                                               $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)....              10
Microwave (per license) (47 CFR part 101)...............              60
218-219 MHz (Formerly Interactive Video Data Service)                 50
 (per license) (47 CFR part 95).........................
Marine (Ship) (per station) (47 CFR part 80)............              10
Marine (Coast) (per license) (47 CFR part 80)...........              10
General Mobile Radio Service (per license) (47 CFR part                5
 95)....................................................
Rural Radio (47 CFR part 22) (previously listed under                  5
 the Land Mobile category)..............................
PLMRS (Shared Use) (per license) (47 CFR part 90).......               5
Aviation (Aircraft) (per station) (47 CFR part 87)......               5
Aviation (Ground) (per license) (47 CFR part 87)........              15
Amateur Vanity Call Signs (per call sign) (47 CFR part              2.19
 97)....................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts               .22
 20, 22, 24, 27, 80 and 90).............................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22,             .08
 24 and 90).............................................
Multipoint Distribution Services (MMDS/MDS) (per license             255
 sign) (47 CFR part 21).................................
Local Multipoint Distribution Service (per call sign)                255
 (47 CFR, part 101).....................................
AM Radio Construction Permits...........................             310
FM Radio Construction Permits...........................             550
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10........................................          61,975
    Markets 11-25.......................................          44,675
    Markets 26-50.......................................          32,025
    Markets 51-100......................................          18,800
    Remaining Markets...................................           4,625
    Construction Permits................................           3,175
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10........................................          20,025
    Markets 11-25.......................................          17,525
    Markets 26-50.......................................          10,050
    Markets 51-100......................................           6,125
    Remaining Markets...................................           1,725
    Construction Permits................................           1,725
Satellite Television Stations (All Markets).............           1,075
Construction Permits--Satellite Television Stations.....             535
Low Power TV, TV/FM Translators & Boosters (47 CFR part              395
 74)....................................................
Broadcast Auxiliary (47 CFR part 74)....................              10
CARS (47 CFR part 78)...................................             155

[[Page 43869]]

 
Cable Television Systems (per subscriber) (47 CFR part               .72
 76)....................................................
Interstate Telecommunication Service Providers (per               .00243
 revenue dollar)........................................
Earth Stations (47 CFR part 25).........................             205
Space Stations (per operational station in geostationary         111,925
 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-                   112,425
 geostationary orbit) (47 CFR part 25)..................
International Bearer Circuits (per active 64KB circuit).            1.37
International Public Fixed (per call sign) (47 CFR part            1,800
 23)....................................................
International (HF) Broadcast (47 CFR part 73)...........             765
------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
                                      FY 2005 radio station regulatory fees
-----------------------------------------------------------------------------------------------------------------
                                                                                                      FM classes
         Population served           AM class A   AM class B   AM class C   AM class D   FM classes   B, C, C0,
                                                                                         A, B1 & C3    C1 & C2
----------------------------------------------------------------------------------------------------------------
<=25,000..........................          625          475          375          450          550          725
25,001--75,000....................        1,225          925          550          675        1,125        1,250
75,001--150,000...................        1,825        1,150          750        1,125        1,550        2,300
150,001--500,000..................        2,750        1,950        1,125        1,350        2,375        3,000
500,001--1,200,000................        3,950        2,975        1,875        2,250        3,750        4,400
1,200,001--3,000,00...............        6,075        4,575        2,825        3,600        6,100        7,025
>3,000,000........................        7,275        5,475        3,575        4,500        7,750        9,125
----------------------------------------------------------------------------------------------------------------

Attachment G

Parties Filing Comments on the Notice of Proposed Rulemaking

American Association of Paging Carriers (AAPC)
Apollo Submarine Cable System Ltd. (Apollo)
Blooston, Mordkofsky, Dickens, Duffy & Prendergast (BloostonLaw)
Kenneth J. Brown (Brown)
National Cable & Telecommunications Association (NCTA)
USA Mobility, Inc. (USA Mobility)

Parties Filing Reply Comments

American Cable Association (ACA)
DIRECTV, Inc. and EchoStar Satellite (DirecTV & Echostar)

Parties Filing a Notice of Oral Ex Parte Presentation

National Cable & Telecommunications Association (NCTA)
DIRECTV, Inc. and EchoStar Satellite (DirecTV & Echostar)

Rule Changes

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

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

    Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 
155, 225, 303, 309.

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


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

------------------------------------------------------------------------
                                       Fee
   Exclusive use services  (per       amount            Address
             license)                  \1\
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz and
 220 MHz Local, Base Station &
 SMRS) (47 CFR, Part 90):
    (a) New, Renew/Mod (FCC 601 &      $20.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic      20.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 601 &         20.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        20.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
220 MHz Nationwide
    (a) New, Renew/Mod (FCC 601 &       20.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic      20.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 601 &         20.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        20.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
2. Microwave (47 CFR Pt. 101)
 (Private):
    (a) New, Renew/Mod (FCC 601 &       85.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic      85.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 601 &         85.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA 15251-
                                                5245.
    (d) Renewal Only (Electronic        85.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
3. 218-219 MHz Service:
    (a) New, Renew/Mod (FCC 601 &       55.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic      55.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 601 &         55.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        55.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
4. Shared Use Services:
Land Mobile (Frequencies Below 470
 MHz--except 220 MHz):.
    (a) New, Renew/Mod (FCC 601 &       10.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.

[[Page 43870]]

 
    (b) New, Renew/Mod (Electronic      10.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 601 &         10.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        10.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
General Mobile Radio Service
    (a) New, Renew/Mod (FCC 605 &        5.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic       5.00  FCC, P.O. Box 358994,
     Filing) (FCC 605 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 605 &          5.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic         5.00  FCC, P.O. Box 358994,
     Filing) (FCC 605 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
Rural Radio (Part 22).............
    (a) New, Additional Facility,       10.00  FCC, P.O. Box 358994,
     Major Renew/Mod (Electronic                Pittsburgh, PA, 15251-
     Filing) (FCC 601 & 159).                   5994.
    (b) Renewal, Minor Renew/Mod        10.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC 601               Pittsburgh, PA, 15251-
     & 159).                                    5994.
Marine Coast
    (a) New Renewal/Mod (FCC 601 &      20.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) Renewal Only (FCC 601 &         20.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (c) Renewal Only (Electronic        20.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
Aviation Ground
    (a) New, Renewal/Mod (FCC 601       10.00  FCC, P.O. Box 358130,
     & 159).                                    Pittsburgh, PA, 15251-
                                                5130.
    (b) Renewal Only (FCC 601 &         10.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (c) Renewal Only (Electronic        10.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
Marine Ship
    (a) New, Renewal/Mod (FCC 605       10.00  FCC, P.O. Box 358130,
     & 159).                                    Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renewal/Mod                10.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC 605               Pittsburgh, PA, 15251-
     & 159).                                    5994.
    (c) Renewal Only (FCC 605 &         10.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic        10.00  FCC, P.O. Box 358994,
     Filing) (FCC 605 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
Aviation Aircraft
    (a) New, Renew/Mod (FCC 605 &        5.00  FCC, P.O. Box 358130,
     159).                                      Pittsburgh, PA, 15251-
                                                5130.
    (b) New, Renew/Mod (Electronic       5.00  FCC, P.O. Box 358994,
     Filing) (FCC 605 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
    (c) Renewal Only (FCC 605 &          5.00  FCC, P.O. Box 358245,
     159).                                      Pittsburgh, PA, 15251-
                                                5245.
    (d) Renewal Only (Electronic         5.00  FCC, P.O. Box 358994,
     Filing) (FCC 605 & 159).                   Pittsburgh, PA, 15251-
                                                5994.
5. Amateur Vanity Call Signs:
    (a) Initial or Renew (FCC 605        2.08  FCC, P.O. Box 358130,
     & 159).                                    Pittsburgh, PA, 15251-
                                                5130
    (b) Initial or Renew                 2.08  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC 605               Pittsburgh, PA, 15251-
     & 159).                                    5994.
6. CMRS Mobile Services (per unit)        .20  FCC, P.O. Box 358835,
 (FCC 159).                                     Pittsburgh, PA, 15251-
                                                5835.
7. CMRS Messaging Services (per           .08  FCC, P.O. Box 358835,
 unit) (FCC 159).                               Pittsburgh, PA, 15251-
                                                5835.
8. Broadband Radio Service                275  FCC, Multipoint, P.O. Box
 (formerly MMDS and MDS).                       358835, Pittsburgh, PA,
                                                15251-5835.
9. Local Multipoint Distribution          275  FCC, Multipoint, P.O. Box
 Service.                                       358835, Pittsburgh, PA,
                                                15251-5835.
------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire
  license term. Therefore, the annual fee amount shown in this table
  that is a small fee (categories 1 through 5) must be multiplied by the
  5- or 10-year license term, as appropriate, to arrive at the total
  amount of regulatory fees owed. It should be further noted that
  application fees may also apply as detailed in Sec.   1.1102 of this
  chapter.


0
3. 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..........         $625  FCC, Radio, P.O. Box
                                                 358835, Pittsburgh, PA,
                                                 15251-5835.
    25,001-75,000 population.....        1,225
    75,001-150,000 population....        1,850
    150,001-500,000 population...        2,775
    500,001-1,200,000 population.        4,000
    1,200,001-3,000,000                  6,150
     population.
    >3,000,000 population........        7,375
2. AM Class B:
    <=25,000 population..........          500
    25,001-75,000 population.....          950
    75,001-150,000 population....        1,200
    150,001-500,000 population...        2,025
    500,001-1,200,000 population.        3,100
    1,200,001-3,000,000                  4,750
     population.
    >3,000,000 population........       $5,700
3. AM Class C:
    <=25,000 population..........          400
    25,001-75,000 population.....          600
    75,001-150,000 population....          800
    150,001-500,000 population...        1,200
    500,001-1,200,000 population.        2,000
    1,200,001-3,000,000                  3,000
     population.

[[Page 43871]]

 
    >3,000,000 population........        3,800
4. AM Class D:
    <=25,000 population..........          475
    25,001-75,000 population.....          725
    75,001-150,000 population....        1,200
    150,001-500,000 population...        1,425
    500,001-1,200,000 population.        2,375
    1,200,001-3,000,000                  3,800
     population.
    >3,000,000 population........        4,750
5. AM Construction Permit                  395
6. FM Classes A, B1 and C3:
    <=25,000 population..........          575
    25,001-75,000 population.....        1,150
    75,001-150,000 population....        1,575
    150,001-500,000 population...        2,450
    500,001-1,200,000 population.        3,875
    1,200,001-3,000,000                  6,325
     population.
    >3,000,000 population........        8,050
7. FM Classes B, C, C0, C1 and
 C2:
    <=25,000 population..........          750
    25,001-75,000 population.....        1,325
    75,001-150,000 population....        2,450
    150,001-500,000 population...        3,200
    500,001-1,200,000 population.        4,700
    1,200,001-3,000,000                  7,500
     population.
    >3,000,000 population........        9,750
8. FM Construction Permits.......          575
------------------------------------------------------------------------
                   TV (47 CFR, Part 73) VHF Commercial
------------------------------------------------------------------------
1. Markets 1 thru 10.............       64,775  FCC, TV Branch, P.O. Box
                                                 358835, Pittsburgh, PA
                                                 15251-5835.
2. Markets 11 thru 25............       47,775
3. Markets 26 thru 50............       32,875
4. Markets 51 thru 100...........       20,450
5. Remaining Markets.............       5,025.
6. Construction Permits..........        3,400
------------------------------------------------------------------------
                             UHF Commercial
------------------------------------------------------------------------
1. Markets 1 thru 10.............       20,750  FCC, UHF Commercial,
                                                 P.O. Box 358835,
                                                 Pittsburgh, PA, 15251-
                                                 5835.
2. Markets 11 thru 25............       19,100
3. Markets 26 thru 50............       10,975
4. Markets 51 thru 100...........        6,500
5. Remaining Markets.............        1,775
6. Construction Permits..........        1,775
------------------------------------------------------------------------
                       Satellie UHF/VHF Commercial
------------------------------------------------------------------------
1. All Markets...................        1,150  FCC Satellite TV, P.O.
                                                 Box 358835, Pittsburgh,
                                                 PA 15251-5835.
2. Construction Permits..........          570
Low Power TV, Class A TV, TV/FM            420  FCC, Low Power, P.O. Box
 Translator, & TV/FM Booster (47                 358835, Pittsburgh, PA,
 CFR Part 74).                                   15241-5835.
Broadcast Auxiliary..............           10  FCC, Auxiliary, P.O. Box
                                                 358835, Pittsburgh, PA,
                                                 15251-5835.
------------------------------------------------------------------------


0
4. 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       $85.00  FCC, P.O. Box 358994,
     Fixed) (Electronic Filing)                  Pittsburgh, PA, 15251-
     (FCC Form 601 & 159).                       5994.
Carriers:

[[Page 43872]]

 
    1. Interstate Telephone           $ .00264  FCC, Carriers, Box
     Service Providers (per                      358835, Pittsburgh, PA,
     interstate and international                15251-5835.
     end-user revenues (see FCC
     Form 499-A).
------------------------------------------------------------------------


0
5. 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         $175  FCC, Cable , P.O. Box
                                                 358835, Pittsburgh, PA,
                                                 15251-5835.
2. Cable TV System (per                    .79
 subscriber).
------------------------------------------------------------------------

0
6. 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).....  820..............  FCC, International,
                                                    P.O. Box 358835,
                                                    Pittsburgh, PA,
                                                    15251-5835.
    2. International Public     1,925............  FCC, International,
     Fixed.                                         Fixed P.O. Box
                                                    358835, Pittsburgh,
                                                    PA, 15251-5835.
Space Stations (Geostationary   111,425..........  FCC, Space Stations,
 Orbit).                                            P.O. Box 358835,
                                                    Pittsburgh, PA,
                                                    15251-5835.
Space Stations (Non-            120,225..........  FCC, Space Stations,
 Geostationary Orbit).                              P.O. Box 358835,
                                                    Pittsburgh, PA,
                                                    15251-5835.
Earth Stations................  215..............  FCC, Earth Station,
Transmit/Receive &............                      P.O. Box 358835,
Transmit Only (per                                  Pittsburgh, PA,
 authorization or                                   15251-5835.
 registration).
Carriers......................  1.47.............  FCC, International,
International Bearer Circuits.                      P.O. Box 358835,
(per active 64KB circuit or                         Pittsburgh, PA,
 equivalent).                                       15251-5835.
------------------------------------------------------------------------

    7. Section 1.1162 is amended by revising paragraphs (e) through (h) 
to read as follows:


Sec.  1.1162  General exemptions from regulatory fees.

* * * * *
    (e) Applicants, permittees or licensees of noncommercial 
educational (NCE) broadcast stations in the FM or TV services, as well 
as AM applicants, permittees or licensees operating in accordance with 
Sec.  73.503 of this chapter.
    (f) Applicants, permittees, or licensees qualifying under paragraph 
(e) of this section requesting Commission authorization in any other 
mass media radio service (except the international broadcast (HF) 
service), wireless radio service, common carrier radio service, or 
international radio service requiring payment of a regulatory fee, if 
the service is used in conjunction with their NCE broadcast station on 
an NCE basis.
    (g) Other applicants, permittees or licensees providing, or 
proposing to provide, a NCE or instructional service, but not 
qualifying under paragraph (e) of this section, may be exempt from 
regulatory fees, or be entitled to a refund, in the following 
circumstances:
    (1) The applicant, permittee or licensee is an organization that, 
like the Public Broadcasting Service or National Public Radio, receives 
funding directly or indirectly through the Public Broadcasting Fund, 47 
U.S.C. 396(k), distributed by the Corporation for Public Broadcasting, 
where the authorization requested will be used in conjunction with the 
organization on an NCE basis;
    (2) An applicant, permittee or licensee of a translator or low 
power television station operating or proposing to operate an NCE 
service who, after grant, provides proof that it has received funding 
for the construction of the station through the National 
Telecommunications and Information Administration (NTIA) or other 
showings as required by the Commission; or
    (3) An applicant, permittee, or licensee provided a fee refund 
under Sec.  1.1160 and operating as an NCE station, is exempt from fees 
for broadcast auxiliary stations (subparts D, E, F, and G of part 74 of 
this chapter) or stations in the wireless radio, common carrier, or 
international services where such authorization is to be used in 
conjunction with the NCE translator or low power station.
    (h) An applicant, permittee or licensee that is the licensee in the 
Educational Broadband Service (EBS) (formerly, Instructional Television 
Fixed Service (ITFS)) (parts 27 and 74, e.g., Sec. Sec.  27.1200, et 
seq., and 74.832(b), of this chapter) is exempt from regulatory fees 
where the authorization requested will be used by the applicant in 
conjunction with the provision of the EBS.
* * * * *

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

Concurring Statement of Commissioner Michael J. Copps

Re: Assessment and Collection of Regulatory Fees for Fiscal Year 2006, 
Report and Order in MD Docket No 06-68

    I concur in today's item to emphasize my long-held and oft-repeated 
belief that the Commission should consider opening a rulemaking to 
address the adjustment of regulatory fees pursuant

[[Page 43873]]

to section 9(b)(3) of the Act. In a rapidly-evolving communications 
marketplace, we need to look for ways to ensure that our regulatory fee 
methodologies continue to reflect the industries we regulate.

Statement of Commissioner Jonathan Adelstein Approving in Part, 
Concurring in Part

Re: Assessment and Collection of Regulatory Fees for Fiscal Year 2006, 
Report and Order in MD Docket No. 06-68

    As in years past, I must concur to portions of our Regulatory Fee 
Order because I remain troubled with the Commission's inability and 
reluctance to consider changes that undoubtedly occur from time to time 
in the costs of regulatory fees for individual services. I encourage 
the Commission to continue to improve its regulatory fee assessment 
processes so that in the future we are more able to make these 
adjustments as appropriate.

[FR Doc. 06-6582 Filed 8-1-06; 8:45 am]
BILLING CODE 6712-01-P