[Federal Register Volume 72, Number 158 (Thursday, August 16, 2007)]
[Rules and Regulations]
[Pages 45908-45937]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-15607]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 07-81; FCC 07-140]


Assessment and Collection of Regulatory Fees for Fiscal Year 2007

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, we amend our Schedule of Regulatory Fees to 
collect $290,295,160 in regulatory fees for Fiscal Year (FY) 2007, 
pursuant to section 9 of the Communications Act of 1934, as amended 
(the Act). 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 17, 2007, except that changes to the 
Schedule of Regulatory Fees made pursuant to section 9(b)(3) of the 
Communications Act, and incorporating regulatory fee payment 
obligations for interconnected VoIP service providers, shall become 
effective November 15, 2007, which is 90 days from date of notification 
to Congress.

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: August 2, 2007.
    Released: August 6, 2007.
    By the Commission: Commissioner Copps approving in part, concurring 
in part and issuing a statement; Commissioner Adelstein concurring and 
issuing a statement.

Table of Contents

                          Heading                             Paragraph
                                                                  number
I. Introduction............................................            1
II. Report and Order.......................................            4
    A. FY 2007 Regulatory Fee Assessment Methodology.......            4
        1. Development of FY 2007 Regulatory Fees..........            5
            a. Calculation of Revenue and Fee Requirements.            5
            b. Additional Adjustments to Payment Units.....            6
        2. Commercial Mobile Radio Service Messaging                   8
         Service...........................................
        3. International Bearer Circuits...................           10
        4. Interconnected Voice over Internet Protocol                11
         Service Providers.................................
        5. Private Land Mobile Radio Service...............           21
    B. Administrative and Operational Issues...............           24
        1. Use of Fee Filer................................           25
        2. Proposals for Notification and Collection of               28
         Regulatory Fees...................................
            a. Interstate Telecommunications Service                  31
             Providers.....................................
            b. Satellite Space Station Licensees...........           33
            c. Media Services Licensees....................           35
            d. Commercial Mobile Radio Service Cellular and           37
             Mobile Services Assessments...................
            e. Cable Television Subscribers................           43
III. Procedural Matters....................................           46
    A. Payment of Regulatory Fees..........................           46
        1. De Minimis Fee Payment Liability................           46
        2. Standard Fee Calculations and Payment Dates.....           47
    B. Enforcement.........................................           48
    C. Final Paperwork Reduction Act of 1995 Analysis......           50
    D. Congressional Review Act Analysis...................           51
IV. Ordering Clauses.......................................           52
Attachments
Attachment A--Final Regulatory Flexibility Analysis
Attachment B--Sources of Payment Unit Estimates for FY 2007
Attachment C--Calculation of Revenue Requirements and Pro-
 Rata Fees

[[Page 45909]]

 
Attachment D--FY 2007 Schedule of Regulatory Fees
Attachment E--Factors, Measurements, and Calculations that
 Determine Station Contours and Population Coverages
Attachment F--FY 2006 Schedule of Regulatory Fees
Attachment G--List of Commenters
Attachment H--Rule Changes
 

I. Introduction

    1. In this Report and Order and Further Notice of Proposed 
Rulemaking, we conclude a proceeding to collect $290,295,160 in 
regulatory fees for Fiscal Year (``FY'') 2007, pursuant to section 9 of 
the Communications Act of 1934, as amended (the ``Act''). 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\ The Further Notice of Proposed Rulemaking (``FNPRM'') 
seeks comment on the appropriate fee structure for Broadband Radio 
Service (``BRS'').
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    \1\ 47 U.S.C. 159(a).
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    2. We retain the established methods, policies, and procedures for 
collecting section 9 regulatory fees adopted by the Commission in prior 
years. We have found that the 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, we retain and enhance our administrative measures used for 
notification and assessment of regulatory fees as in previous years, 
such as generating bills and pre-completed assessment notifications for 
certain regulatees. Beginning this year, we expand our billing efforts 
to include licensees of earth stations and cable television relay 
service (``CARS'') stations. We will also apply regulatory fee 
obligations to interconnected Voice over Internet Protocol (``VoIP'') 
providers. Finally, we wish to take this opportunity to strongly 
encourage regulatees to electronically file their FY 2007 regulatory 
fee payments via Fee Filer.
    3. The Commission is obligated to collect $290,295,160 in 
regulatory fees during FY 2007 to fund the Commission's operations. 
Consistent with our established practice, we intend to collect these 
regulatory fees during a filing window in September 2007 in order to 
collect the required amount by the end of our fiscal year.

II. Report and Order

A. FY 2007 Regulatory Fee Assessment Methodology

    4. On April 18, 2007, we released a Notice of Proposed Rulemaking 
seeking comment on regulatory fee issues.\2\ As noted in the FY 2007 
NPRM, the section 9 regulatory fee proceeding is an annual rulemaking 
process intended to ensure the Commission collects the fee amount 
required by Congress each year. In the FY 2007 NPRM, we proposed to 
largely retain the section 9 regulatory fee methodology used in the 
prior fiscal year. We received ten comments and six reply comments.\3\ 
We address the issues raised in our FY 2007 NPRM below.
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    \2\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2007, Notice of Proposed Rulemaking, 22 FCC Rcd 7975 (2007) 
(``FY 2007 NPRM'').
    \3\ See Attachment G for the list of commenters and abbreviated 
names.
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1. Development of FY 2007 Regulatory Fees
a. Calculation of Revenue and Fee Requirements
    5. In our FY 2007 regulatory fee assessment, we use essentially the 
same section 9 regulatory fee assessment methodology adopted for FY 
2006. Each fiscal year, the Commission proportionally allocates the 
total amount that must be collected via section 9 regulatory fees. The 
results of our FY 2007 regulatory fee assessment methodology (including 
a comparison to the prior year's results) are contained in Attachment 
C. For FY 2007, we will use the FY 2006 congressionally mandated amount 
as the basis for calculating the unit fees for each fee category. To 
collect the $290,295,160 required by law, we adjust the FY 2006 amount 
downward by approximately 2.84 percent.\4\ Consistent with past 
practice, we then divide the FY 2007 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\ The percentage decrease of approximately 2.84 percent is 
based on the total amount of regulatory fees that was mandated by 
Congress to be collected in FY 2006, which included an amount of 
$288,771,000 in regulatory fees pursuant to section 9 of the Act and 
an additional $10,000,000 as required by section 3013 of the Deficit 
Reduction Act (Pub. L. 109-171). Together, the total amount of 
regulatory fees mandated by Congress to be collected in FY 2006 was 
$298,771,000. Also, the decrease in regulatory fee payments of 
approximately 2.84 percent in FY 2007 is reflected in the revenue 
that is expected to be collected from each service category. Because 
this expected revenue is adjusted for each individual service 
category each year by the number of estimated payment units in a 
service category, and then adjusted for rounding, the actual fee 
will likely differ by an amount more or less than 2.84 percent. For 
example, in industries where the number of payment units is 
declining, the per-unit regulatory fee amount for FY 2007 may 
actually be more than the amount for FY 2006.
    \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 per-unit fee (such as for International Bearer 
Circuits), a per-unit subscriber fee (such as for Cable, Commercial 
Mobile Radio Service (``CMRS'') Cellular/Mobile and CMRS Messaging), 
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 2007 regulatory fees listed in Attachment 
D, we further adjusted the FY 2006 list of payment units (Attachment B) 
based upon licensee databases and industry and trade group projections. 
Whenever possible, we verified these estimates from multiple sources to 
ensure the accuracy of these estimates. In some instances, Commission 
licensee databases were used, while in other instances, actual prior 
year payment records and/or industry and trade association projections 
were used in determining the payment unit counts.\6\ Where appropriate, 
we adjusted and rounded our final estimates to take into consideration 
events that may impact the number of units for which regulatees submit 
payment, such as waivers and exemptions that may be filed in FY 2007, 
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 2007 payment units are based on FY 2006 actual payment 
units, the number may have been rounded or

[[Page 45910]]

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''), Consolidated Database System 
(``CDBS'') and Cable Operations and Licensing System (``COALS''). 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.\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 Messaging Service
    8. In the FY 2007 NPRM, we proposed to continue our policy of 
maintaining the CMRS Messaging Service regulatory fee at the rate that 
was established in FY 2002 (i.e., $0.08 per subscriber), noting that 
the subscriber base in this industry has declined 79 percent from 40.8 
million to 8.3 million from FY 1997 to FY 2006.\8\ The only commenters 
addressing this issue, AAPC and USA Mobility, state that maintaining 
the fee amount at $0.08 per subscriber is the minimum action to take 
and that the Commission should consider reducing the fee amount.\9\
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    \8\ See FY 2007 NPRM, 22 FCC Rcd at 7978, para 7.
    \9\ AAPC Comments at 1; USA Mobility Comments at 3. No 
commenters opposed our proposal.
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    9. We continue to believe that maintaining the CMRS Messaging 
regulatory fee at the rate established in FY 2002, rather than allowing 
it to increase, is the appropriate level of relief to be afforded to 
the messaging industry. We are cognizant 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. Therefore, we adopt our proposal to maintain the CMRS 
Messaging Service regulatory fee for FY 2007 at $0.08 per subscriber.
3. International Bearer Circuits
    10. In our FY 2006 NPRM,\10\ we noted that VSNL Telecommunications 
(US) Inc. (``VSNL'') had filed a Petition for Rulemaking urging the 
Commission to revise its regulatory fee methodology for bearer 
circuits; \11\ and that we issued a Public Notice designating the 
proceeding as RM-11312 and requesting comment on the Petition.\12\ We 
stated in our FY 2006 Report and Order that the issues presented in the 
Petition warrant consideration separately from the Commission's annual 
regulatory fee proceeding.\13\ In our FY 2007 NPRM, we received a set 
of joint comments filed by seven submarine cable landing licensees 
urging the Commission to take similar action.\14\ We reiterate that the 
issues presented in the Petition warrant consideration separately from 
the Commission's annual regulatory fee proceeding.\15\
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    \10\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, MD Docket No. 06-68, Notice of Proposed Rulemaking, 21 
FCC Rcd 3708, 3718, n.20 (2006) (``FY 2006 NPRM'').
    \11\ See Petition for Rulemaking of VSNL Telecommunications (US) 
Inc., RM-11312 (filed Feb. 6, 2006) (``VSNL Petition'').
    \12\ See Consumer and Governmental Affairs Bureau, Reference 
Information Center, Public Notice, Report No. 2759 (rel. Feb. 15, 
2006).
    \13\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092, 
8098-99, para 18 (2006) (``FY 2006 Report and Order'').
    \14\ See Joint Comments at 1.
    \15\ We incorporate the instant comments of the seven cable 
landing licensees into the VSNL Petition proceeding, RM-11312.
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4. Interconnected Voice Over Internet Protocol Service Providers
    11. In the FY 2007 NPRM, we observed that providers of 
interconnected VoIP \16\ services are now required to contribute to the 
Universal Service Fund (``USF'') \17\ and we tentatively concluded that 
the interconnected VoIP providers should also pay regulatory fees.\18\ 
Our tentative conclusion was based on the mandate in section 9 of the 
Act that the Commission ``assess and collect regulatory fees to recover 
the costs'' of regulatory activities \19\ as well as our analysis in 
the 2006 Interim Contribution Methodology Order. In this Report and 
Order we adopt our tentative conclusion in the FY 2007 NPRM and require 
interconnected VoIP providers to pay FY 2007 regulatory fees based on 
revenues reported on the FCC Form 499-A at the same rate as interstate 
telecommunications service providers (``ITSPs'').\20\
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    \16\ See 47 CFR 9.3 for the definition of interconnected VoIP 
service.
    \17\ See Universal Service Contribution Methodology, Report and 
Order and Notice of Proposed Rulemaking, WC Docket No. 06-122, 21 
FCC Rcd 7518, 7536-543, paras. 34-49 (2006) (``2006 Interim 
Contribution Methodology Order'') (finding that interconnected VoIP 
service providers are ``providers of interstate telecommunications'' 
under section 254(d) and asserting the Commission's permissive 
authority to require interconnected VoIP service providers to 
contribute to the preservation and advancement of universal 
service), aff'd in relevant part, Vonage Holdings Corp., v. FCC, No. 
06-1276 (D.C. Cir. 2007) (``Vonage'').
    \18\ FY 2007 NPRM, 22 FCC Rcd at 7979, para. 10.
    \19\ 47 U.S.C. 159(a)(1).
    \20\ Interconnected VoIP providers will pay FY 2007 regulatory 
fees during a separate filing window (to be determined later), most 
likely in 2008. For FY 2008, interconnected VoIP providers will be 
required to pay regulatory fees in the same filing window as other 
entities.
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a. Jurisdiction
    12. By way of recent background, in the 2006 Interim Contribution 
Methodology Order, the Commission, among other things, established 
universal service contribution obligations for providers of 
interconnected VoIP service based on its permissive authority under 
section 254(d) of the Act and its ancillary jurisdiction under Title I 
of the Act.\21\ The Commission noted that significant growth in the 
number of VoIP subscribers in recent years is expected to continue.\22\ 
In addition, the Commission observed that the USF revenue base had been 
diminishing and the contribution factor used to determine contributor 
payments into the fund has risen considerably as a result.\23\ 
Interconnected VoIP service is increasingly used to replace traditional 
telephone service and, as the interconnected VoIP service industry 
continues to grow and to attract customers who previously relied on 
traditional voice service, it was inappropriate to exclude 
interconnected VoIP service from universal service contribution 
requirements.\24\ In its Vonage decision, the DC Circuit upheld the 
Commission's decision to impose USF fees on interconnected VoIP 
providers.\25\ Prior to the 2006 Interim Contribution Methodology 
Order, the Commission asserted its ancillary jurisdiction under Title I 
of the Act to require providers of interconnected VoIP services to 
supply 911 emergency calling capabilities to their customers.\26\

[[Page 45911]]

More recently, the Commission also extended the section 222 customer 
proprietary network information (``CPNI'') obligations, disability 
access obligations, and telecommunications relay services (``TRS'') 
requirements to providers of interconnected VoIP services using its 
Title I authority.\27\
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    \21\ 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 
7538-543, paras. 38-49.
    \22\ Id., 21 FCC Rcd at 7528-29, para. 19.
    \23\ Id.
    \24\ Id., 21 FCC Rcd at 7541, para. 44.
    \25\ Vonage at 15. Because it found that the Commission has 
authority under section 254(d) of the Act to impose USF contribution 
obligations on interconnected VoIP providers, the court did not 
decide whether the Commission also could have imposed this 
obligation pursuant to its Title I ancillary jurisdiction. Id. at 
15-16.
    \26\ See E911 Requirements for IP-Enabled Service Providers, 
First Report and Order and Notice of Proposed Rulemaking, 20 FCC Rcd 
10245 (2005) (``VoIP 911 Order''); 47 CFR Part 9. The Commission 
also concluded that providers of interconnected VoIP services are 
subject to the Communications Assistance for Law Enforcement Act 
(``CALEA''). See Communications Assistance for Law Enforcement Act 
and Broadband Access and Services, ET Docket No. 04-295, RM-10865, 
First Report and Order and Further Notice of Proposed Rulemaking, 20 
FCC Rcd 14989, 14991-92, para. 8 (2002) (``CALEA First Report and 
Order''), aff'd, American Council on Education v. FCC, 451 F.3d 226 
(D.C. Cir. 2006).
    \27\ Implementation of the Telecommunications Act of 1996, 
Telecommunications Carriers' Use of Customer Proprietary Network 
Information and Other Customer Information, IP-Enabled Services, CC 
Docket No. 96-115, WC Docket No. 04-36, Report and Order and Further 
Notice of Proposed Rulemaking, 22 FCC Rcd 6927 (2007) (``EPIC CPNI 
Order''); IP-Enabled Services, Implementation of Sections 255 and 
251(a)(2) of the Communications Act of 1934, as Enacted by the 
Telecommunications Act of 1996: Access to Telecommunications 
Service, Telecommunications Equipment and Customer Premises 
Equipment by Persons with Disabilities, WC Docket No. 04-36, WT 
Docket No. 96-198, Report and Order, FCC 07-110 (rel. June 15, 2007) 
(``VoIP TRS Order'').
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    13. Consistent with our previous orders, we conclude that Title I 
of the Act gives us direct authority to impose regulatory fees on 
providers of interconnected VoIP services. In particular, we have 
previously found, based on sections 1 and 2(a) of the Act, coupled with 
the definitions set forth in section 3(33) (``radio communication'') 
and section 3(52) (``wire communication''), that interconnected VoIP 
services are covered by the Commission's general jurisdictional 
grant.\28\ Section 1 of the Act states that the Commission is created 
``[f]or the purpose of regulating interstate and foreign commerce in 
communication by wire and radio so as to make available, so far as 
possible, to all the people of the United States * * * a rapid, 
efficient, Nation-wide, and world-wide wire and radio communication 
service with adequate facilities at reasonable charges,'' and that the 
agency ``shall execute and enforce the provisions of th[e] Act.'' \29\ 
Section 2(a), in turn, confers on the Commission regulatory authority 
over all interstate communication by wire or radio.\30\ As we have 
previously observed, interconnected VoIP services are covered by the 
statutory definitions of ``wire communication'' and/or ``radio 
communication'' because they involve ``transmission of [voice] by aid 
of wire, cable, or other like connection * * *'' and/or ``transmission 
by radio * * *'' of voice.\31\ Therefore, these services come within 
the scope of the Commission's subject matter jurisdiction under section 
2(a) of the Act. Accordingly, section 9 of the Act gives the Commission 
direct authority to impose regulatory fees on interconnected VoIP 
providers. Specifically, section 9 states that the Commission ``shall 
assess and collect regulatory fees to recover the costs of the 
following regulatory activities of the Commission: Enforcement 
activities, policy and rulemaking activities, user information 
services, and international activities.'' \32\ In light of the many and 
increasing resources the Commission now dedicates to VoIP, the 
Commission should recover costs from interconnected VoIP providers.\33\
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    \28\ See, e.g., VoIP 911 Order, 20 FCC Rcd at 10261-62, para. 
28.
    \29\ 47 U.S.C. 151.
    \30\ See 47 U.S.C. 152(a) (stating that the provisions of the 
Act ``shall apply to all interstate and foreign communication by 
wire or radio and all interstate and foreign transmission of energy 
by radio, which originates and/or is received within the United 
States, and to all persons engaged within the United States in such 
communication or such transmission of energy by radio * * *'').
    \31\ VoIP 911 Order, 20 FCC Rcd at 10261-62, para. 28.
    \32\ 47 U.S.C. 159(a)(1).
    \33\ See, e.g., nn.26-27 supra. Although we find that section 9 
by its terms allows us to impose regulatory fees on providers of 
interconnected VoIP services, we also find, consistent with our 
prior orders, that we have ancillary authority under Title I to 
impose these fees. See, e.g., VoIP 911 Order, 20 FCC Rcd at 10261-
63, paras. 26-29. Interconnected VoIP providers fall within our 
Title I jurisdictional grant and the assessment of regulatory fees 
to fund Commission operations is critical to the effective 
performance of the Commission's responsibilities.
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    14. We disagree with the VON Coalition's argument that we do not 
have jurisdiction to extend regulatory fees to interconnected VoIP 
providers because regulatory fees can only be assessed on entities 
subject to licensing or certification requirements.\34\ On the 
contrary, section 9 gives the Commission broad authority to impose 
regulatory fees. Section 9 does not limit the regulatory fee 
requirement to licensees. Moreover, the Commission has not, in the 
annual regulatory fee orders or otherwise, specifically limited the 
implementation of section 9 to ``licensees.'' To construe section 9 as 
narrowly as the VON Coalition proposes would prohibit the Commission 
from recovering costs from providers that impose costs on the 
Commission, simply because they were not licensees and would 
unreasonably lighten regulatory costs on certain industry segments at 
the cost of others.
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    \34\ VON Coalition Comments at 6-7; WCA Comments at 3-5 & Reply 
Comments at 2-3.
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b. Basis and Rate
    15. Having concluded that the Commission has authority to assess 
regulatory fees on interconnected VoIP providers, we must determine how 
to assess those fees. Specifically, we must determine whether to base 
fees on revenues or subscribers, or some other basis, and at what rate. 
We conclude that interconnected VoIP providers should pay regulatory 
fees based on their interstate and international revenue at the same 
rate as ITSPs.
    16. In the FY 2007 NPRM, we sought comment on whether 
interconnected VoIP providers should be assessed regulatory fees based 
on revenues, which would be consistent with the regulatory fee 
methodology used for interstate telecommunications service providers, 
or if we should use a numbers-based approach, which would be consistent 
with the methodology used for CMRS.\35\ Most commenters addressing this 
issue favor a numbers-based or subscriber-based approach, as opposed to 
a revenue-based approach.\36\ We instead adopt a revenue-based approach 
as adopted in the 2006 Interim Contribution Methodology Order for USF 
contributions. The Commission's conclusion that interconnected VoIP 
service is more closely analogous to wireline toll service than to CMRS 
guides us here.\37\ As a result, we will use revenue as the basis for 
imposing regulatory fees on interconnected VoIP providers instead of a 
subscriber-based approach, which is the basis for wireless 
providers.\38\
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    \35\ FY 2007 NPRM, 22 FCC Rcd at 7979, para. 10.
    \36\ See, e.g., Nuvio Comments at 4; IUB Comments at 2-4; 
Comcast Comments at 1-2; WCA Comments at 3; NCTA Reply Comments at 
2; VON Coalition Reply Comments at 6. Nuvio and VON Coalition 
suggest that if the Commission adopts a numbers-based assessment, 
the assessment should be on active numbers and not the inventory of 
numbers. Nuvio Comments at 4; VON Coalition Reply Comments at n. 16.
    \37\ The D.C. Circuit rejected Vonage's challenge to that 
conclusion because Vonage was unable to show why usage patterns for 
VoIP are more like those for wireless than for wireline toll. Vonage 
at 18.
    \38\ See NTCA Comments at 2.
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    17. Commenters contend that broadband providers often offer a 
bundle of services to consumers and it may be difficult to separate the 
telecommunications service revenues from the other revenues.\39\ 
Consistent with our decision in the 2006 Interim Contribution 
Methodology Order, however, interconnected VoIP providers may avoid 
separating revenue types by using a safe-harbor level of 64.9 percent 
interstate or international revenues for purposes of calculating 
regulatory fee

[[Page 45912]]

obligations.\40\ Interconnected VoIP providers may contribute based on 
a lesser percentage if they provide supporting traffic studies.\41\
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    \39\ Nuvio Comments at 4; Iowa Utilities Board Comments at 2-4; 
Comcast Comments at 1-2; WCA Comments at 3; NCTA Reply Comments at 
2. Nuvio suggests that if the Commission adopts a numbers-based 
assessment, the assessment should be on active numbers and not the 
inventory of numbers. Nuvio Comments at 4.
    \40\ See 2006 Interim Contribution Methodology Order, 21 FCC Rcd 
at 7544-45, para. 53; Vonage, slip op. at 7, 17-19.
    \41\ Consistent with the Vonage decision, interconnected VoIP 
providers need not at this time obtain pre-approval of their traffic 
studies. Rather, they must submit any studies upon which they rely 
no later than the deadline for submitting the FCC Form 499-Q for the 
same time period. Vonage, slip op. at 19-20; 2006 Interim 
Contribution Methodology Order, 21 FCC Rcd at 7535, para. 32.
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    18. We also conclude that interconnected VoIP providers will pay 
regulatory fees on their interstate and international revenues at the 
same rate as ITSPs. As we stated in the 2006 Interim Contribution 
Methodology Order, interconnected VoIP providers offer a service that 
is almost indistinguishable, from the consumers' point of view, from 
the service offered by interstate telecommunications service 
providers.\42\ Further, the explosive growth of the VoIP industry in 
recent years has resulted in recent Commission actions addressing the 
service.\43\ The growth of the VoIP industry and the extent to which 
VoIP service is used as a substitute for analog voice service have 
necessitated a number of Commission rulemaking proceedings pertaining 
to interconnected VoIP services.
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    \42\ The Commission has determined that interconnected VoIP 
service is increasingly used to replace analog voice service. See 
2006 Interim Contribution Methodology Order, 21 FCC Rcd at 7542, 
para. 48.
    \43\ See, e.g., 2006 Interim Contribution Methodology Order, 21 
FCC Rcd at 7541-43, paras. 46-49; VoIP 911 Order, 20 FCC Rcd at 
10261-266, paras. 26-35; EPIC CPNI Order at para. 55.
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    19. We recognize that the costs and benefits associated with our 
regulation of interconnected VoIP providers are not identical as those 
associated with regulating interstate telecommunications service and 
CMRS.\44\ For example, at this time interconnected VoIP providers are 
not subject to the Commission's enforcement authority in most instances 
and only recently have the Commission's rulemaking activities involved 
interconnected VoIP providers.\45\ The Commission does not maintain a 
database system pertaining to interconnected VoIP providers similar to 
the registration and filing systems for CMRS and wireline carriers.\46\ 
In addition, interconnected VoIP providers do not receive certain 
benefits, such as universal service support payments and 
interconnection rights, as Title II carriers do.\47\ Section 9 is 
clear, however, that regulatory fee assessments are based on the burden 
imposed on the Commission, not benefits realized by regulatees.\48\ 
Interconnected VoIP providers create costs at the Commission by 
participating in rulemaking proceedings, waiver petitions, and other 
matters in the wake of our assertion of ancillary jurisdiction under 
Title I of the Act to require providers of interconnected VoIP services 
to contribute to the universal service fund, supply 911 emergency 
calling capabilities to their customers, comply with section 222 CPNI 
obligations, and comply with our disability access and TRS 
requirements.\49\ The provision of interconnected VoIP service is a 
growing industry \50\ and we can reasonably assume that this regulatory 
burden on the Commission will continue to increase.\51\ Thus, this 
category of service providers should share in the costs of the 
Commission's regulatory activities in the same manner as ITSPs. Section 
9 does not require the Commission to engage in a company-by-company 
assessment of relative regulatory costs. In any given year, companies 
grouped in the ITSP category, or other regulatory fee categories, might 
be the subject of more regulation than others, e.g., merger 
proceedings. As a result, our responsibility here is to identify the 
category of regulatory fee payees with which interconnected VoIP 
providers most closely relate. On this note, we also observe that 
interconnected VoIP providers are able to offer their services because 
they interconnect with the PSTN, and they thereby benefit from our 
substantial regulation of telecommunications service providers.\52\
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    \44\ See WCA Comments at 6; VON Coalition Comments at 15-17 & 
n.42.
    \45\ VON Coalition Comments at 16.
    \46\ Id.
    \47\ VON Coalition Comments at 17; WCA Comments at 6. We note 
that interconnected VoIP service is currently an eligible service 
for purposes of the schools and libraries program. In addition, the 
Commission recently clarified that wholesale telecommunications 
carriers have interconnection rights under sections 251(a) and (b) 
of the Act, including when providing wholesale services to 
interconnected VoIP providers. See Time Warner Cable Request for 
Declaratory Ruling that Competitive Local Exchange Carriers May 
Obtain Interconnection Under Section 251 of the Communications Act 
of 1934, as Amended, to Provide Wholesale Telecommunications 
Services to VoIP Providers, WC Docket No. 06-55, Memorandum Opinion 
and Order, DA 07-709 (WCB rel. Mar. 1, 2007).
    \48\ Commenters have not attempted to quantify the relative 
burden imposed on the Commission by interconnected VoIP providers.
    \49\ 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 
7541-43, paras. 46-49; VoIP 911 Order, 20 FCC Rcd at 10261-266, 
paras. 26-35; EPIC CPNI Order at para. 55; VoIP TRS Order at para. 
16.
    \50\ 2006 Interim Contribution Methodology Order, 21 FCC Rcd at 
7528-29, para. 19.
    \51\ We recognize that including interconnected VoIP providers 
in our regulatory fee schedule at this time will have a minimal 
impact on the fees assessed other carriers, but this may change as 
the industry grows and their share of regulatory fees increases.
    \52\ In addition, those companies that currently offer their 
customers both Title II services and interconnected VoIP services 
may choose to shift customers from the traditional landline service 
to the interconnected VoIP service in order to reduce the regulatory 
fee burden.
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    20. Because we are adding interconnected VoIP services to our 
regulatory fee assessments, we conclude that this is a permitted 
amendment under section 9(b)(3) of the Act. Section 9(b)(4)(B) of the 
Act in turn requires us to notify Congress 90 days before the change 
may take effect. We will provide Congress notification upon publication 
of this order, and will release a public notice once the amendment 
takes effect, if there is no Congressional objection.
5. Private Land Mobile Radio Service
    21. EWA argues that the fee for Private Land Mobile Radio Service 
(``PLMRS'') exclusive use licenses has increased from $5 per year in 
2001 to $20 per year in 2006, and for PLMRS shared use licenses, the 
fee has increased from $5 to $10 during the same time period.\53\ EWA 
further contends that this increase in fee rates is not associated with 
a corresponding increase in the cost of regulating the PLMRS industry, 
and as a result, the Commission's FY 2007 proposed Part 90 PLMRS 
regulatory fee of $35 (PLMRS Exclusive Use) and $15 (PLMRS Shared Use) 
is unjustified.
---------------------------------------------------------------------------

    \53\ EWA Comments at 2-3.
---------------------------------------------------------------------------

    22. We disagree. In our FY 2004 Report and Order, the Commission 
stated that regulatory fees need not be precisely calibrated on a 
service-by-service basis to the actual costs of the Commission's 
regulatory activities for that service.\54\ The Commission stated that, 
``the initial Schedule of Regulatory Fees that Congress enacted in 
section 9(g) reflects a `costs adjusted for benefits' approach 
permitted under section 9.'' \55\ Procedurally, the Commission 
calculates regulatory fees by proportionally allocating the total 
amount that must be collected in section 9 regulatory fees (known as 
``Expected Revenue''), and dividing this allocated amount by the 
estimated number of units in its respective fee category. In the case 
of PLMRS (Shared Use and Exclusive Use), the resulting figure is also 
divided by 10, the length of the

[[Page 45913]]

term of a PLMRS license. Because PLMRS licenses have a ten-year term, 
and regulatory fees are not collected again from these licenses until 
after 10 years have passed, it is possible that in any given year, 
there may be fewer units that are either renewing their PLMRS licenses 
or applying for new ones. For example, between FY 2001 and FY 2006, the 
unit estimates for PLMRS Exclusive Use decreased from 5,500 units (FY 
2001) to 2,200 units (FY 2006), a 60 percent reduction, while PLMRS 
Shared Use unit estimates decreased from 58,000 units (FY 2001) to 
25,000 units (FY 2006), a 57 percent reduction.\56\ At the same time 
that PLMRS (Shared Use and Exclusive Use) unit estimates were 
decreasing by nearly 60 percent, our congressionally mandated 
regulatory fees collections amount increased from $200.1 million (FY 
2001) to $298.8 million (FY 2006), an increase of 49 percent. The 
combination of an increasing collections amount mandated by Congress 
combined with a decrease in the number of units resulted in a higher 
unit fee between FY 2001 and FY 2006 for PLMRS Shared Use and PLMRS 
Exclusive Use fee categories.
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    \54\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2004, MD Docket No. 04-73, Report and Order, 19 FCC Rcd 11662, 
11665-67, paras. 6-12 (2004) (``FY 2004 Report and Order'').
    \55\ See FY 2004 Report and Order, 19 FCC Rcd at 11666, para. 8.
    \56\ Data derived from regulatory fee Report and Orders for 
fiscal years 2001-2006.
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    23. We also note that the unit fee increase has been gradual over 
time. For example, between FY 2001 and FY 2006, the PLMRS Shared Use 
unit fee remained steady at $5 per year between FY 2001 and FY 2005, 
and increased only to $10 per year beginning in FY 2006. During the 
same time period, the PLMRS Exclusive Use unit fee remained at $5 per 
year in FY 2001 and FY 2002, increased to the level of $10 per year in 
FY 2003, FY 2004, and FY 2005, and then increased to $20 per year in FY 
2006. Because these fee increases are based primarily on a declining 
unit base and an increasing congressional mandate to collect more 
annual regulatory fees, common factors that contribute to unit fee 
changes each year, we decline to modify or reduce the PLMRS (Shared Use 
and Exclusive Use) unit fee as EWA suggests.

B. Administrative and Operational Issues

    24. In our FY 2007 NPRM, we sought 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, the administrative and 
operational issues affect the process of submitting payment.
1. Use of Fee Filer
    25. We did not seek specific comment on the use of our online Fee 
Filer application in the FY 2007 NPRM. We take this opportunity, 
however, to strongly encourage regulatees to electronically file their 
FY 2007 regulatory fee payments via Fee Filer,\57\ rather than 
submitting payment with a completed hardcopy Form 159, Form 159-B, and/
or Form 159-W. The benefits of electronically filing via Fee Filer are 
expeditious payment submissions that are less expensive (no U.S. 
postage if paying online) and less prone to error. It also results in 
improved record keeping and payment reconciliation efforts, and reduces 
paperwork burdens on payers and Commission staff alike.
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    \57\ Fee Filer can be accessed at http://www.fcc.gov/fees/feefiler.html.
---------------------------------------------------------------------------

    26. Traditionally, we have received hardcopy Form 159-Cs 
(Continuation Sheets) from our regulatees needing to make voluminous 
payment transactions. Our ``voluminous payers'' will benefit even more 
so by using Fee Filer. Having expanded our pre-billing initiatives in 
FY 2007, some regulatees will receive more than one Form 159-B; and 
some will be obligated to pay for fees that were pre-billed and other 
fees that were not pre-billed. Fee Filer relieves regulatees of the 
need to mail several different pre-bills or to follow different filing 
instructions for different fees; and enables all fee obligations to be 
paid simply either online or by following pre-printed instructions on a 
Fee Filer-produced voucher.
    27. We note that Fee Filer accepts electronic credit card 
transactions of up to $99,999.99 and ACH payment transactions from a 
bank account of an unlimited dollar amount. Fee Filer also facilitates 
payment by check or wire transfer by producing a one-page Remittance 
Voucher Form 159-E which can be mailed to our lockbox bank.
2. Proposals for Notification and Collection of Regulatory Fees
    28. In our FY 2007 NPRM, we sought comment on the administrative 
processes that the Commission uses to notify regulatees and collect 
regulatory fees. We received no comment on these general processes. 
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 2007 regulatory fee cycle. As 
a general practice, we will not send regulatory fee material to 
regulatees 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 
HelpDesk at (877) 480-3201, Option 4.
    29. As discussed above, we do not send public notices and fact 
sheets to regulatees en masse. However, we will continue to send 
specific regulatory fee pre-bills or assessment notifications via 
surface mail to the select fee categories discussed below.\58\ Pre-
bills are hardcopy billing statements that the Commission mails to 
certain regulatees. In prior years, the Commission only sent pre-bills 
to ITSPs and satellite space station licensees. The remaining 
regulatees did not receive pre-bills.
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    \58\ 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 
accounting system as a current debt. A pre-bill is considered an 
account receivable in the Commission's accounting system. Pre-bills 
reflect the amount owed and have a payment due date of the last day 
of the regulatory fee payment window. Consequently, if a pre-bill is 
not paid by the due date, it becomes delinquent and is subject to 
our debt collection procedures. See also 47 CFR 1.1161(c), 
1.1164(f)(5), and 1.1910.
---------------------------------------------------------------------------

    30. In our FY 2007 NPRM, we sought comment on expanding our section 
9 regulatory fee pre-billing initiatives to include our service 
categories for earth stations and CARS stations, beginning in FY 2007. 
We stated that we could accomplish pre-billing for these categories 
because they are comprised of relatively few payment units (relative to 
many other categories in our Schedule of Regulatory Fees), and because 
we maintain licensing databases for both categories.\59\ The ACA 
supports our proposal to pre-bill earth stations and CARS stations, 
noting that it can promote timely filings and payments, and further 
reduce administrative burdens and costs for small cable operators.\60\ 
We received no comments regarding our proposal. Effective this fiscal 
year, we will pre-bill our earth station and CARS station service 
categories.
---------------------------------------------------------------------------

    \59\ See FY 2007 NPRM, 22 FCC Rcd at 7981, para. 19.
    \60\ ACA Comments at 4.
---------------------------------------------------------------------------

a. Interstate Telecommunications Service Providers
    31. In FY 2001, we began mailing pre-completed FCC Form 159-W 
assessments to carriers in an effort to

[[Page 45914]]

assist them in paying their ITSP regulatory fee. The fee amount on FCC 
Form 159-W was calculated from the FCC Form 499-A worksheet. Beginning 
in FY 2004, we converted our usage of the FCC Form 159-W from an 
``assessment of amount due'' to a pre-bill. We have successfully used 
the Form 159-W as a pre-billing instrument in the fiscal years 
following, and we proposed to continue our ITSP pre-billing initiative 
in FY 2007 in our FY 2007 NPRM. We received no comment on this 
proposal, and will continue to mail pre-bills ITSPs in FY 2007.
    32. This fiscal year, we will round lines 14 (total subject 
revenues) and 16 (total regulatory fee owed) on FCC Form 159-W to the 
nearest dollar. Line 14 must be rounded to a whole dollar amount 
because this data field is linked to the FCC Form 159 Remittance Advice 
Block 25A (quantity), which can only accept whole numbers. It logically 
follows that if line 14 must be rounded, then the form's final line 
that calculates the total fee owed (line 16) should be rounded to the 
nearest dollar as well. Also, rounding lines 14 and 16 will nominally 
ease the filing and payment burdens of our Form 159-W filers. We 
received no comment on this administrative change as proposed in our FY 
2007 NPRM, and will therefore implement the change for FY 2007.
b. Satellite Space Station Licensees
    33. Beginning in FY 2004, we mailed regulatory fee pre-bills via 
surface mail to licensees in our two satellite space station service 
categories. Specifically, geostationary orbit space station (``GSO'') 
licensees received 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 pre-
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.
    34. For FY 2007, we proposed to continue mailing pre-bills for our 
GSO and NGSO satellite space station categories.\61\ We received no 
comment on this matter, and will continue to mail pre-bills to our GSO 
and NGSO satellite space station categories.
---------------------------------------------------------------------------

    \61\ See FY 2007 NPRM, 22 FCC Rcd at 7980-81, para. 17.
---------------------------------------------------------------------------

c. Media Services Licensees
    35. Beginning in FY 2003, we sent fee assessment notifications via 
surface mail to media services entities on a per-facility basis. The 
notifications provided the assessed fee amount for the facility in 
question, as well as the data attributes that determined the fee 
amount. We have since refined this initiative with improved 
results.\62\ In our FY 2007 NPRM, we proposed to continue our 
assessment initiative for media services licensees this year.\63\ We 
received no comment on the proposal.
---------------------------------------------------------------------------

    \62\ Some of those refinements have been to provide licensees 
with a Commission-authorized Web site to update or correct any 
information concerning their facilities, and to amend their fee-
exempt status, if need be. Also, our notifications now provide 
licensees with a telephone number to call in the event that they 
need customer assistance. The notifications themselves have been 
refined so that licensees of fewer than four facilities receive 
individual fee assessment postcards for their facilities; whereas 
licensees of four or more facilities now receive a single assessment 
letter that lists all of their facilities and the associated 
regulatory fee obligation for each facility.
    \63\ Fee assessments were proposed again 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, Class A Television 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 2007.
---------------------------------------------------------------------------

    36. Consistent with procedures used last year, we will mail 
assessment notifications to licensees to their primary record of 
contact populated in CDBS (Consolidated Database System) and to their 
secondary record of contact, if available. We will continue to make the 
Commission-authorized web site available to licensees to update or 
correct any information concerning their facilities and to amend their 
fee-exempt status, if need be.\64\ Licensees opting not to file their 
fee payment electronically through Fee Filer must submit a completed 
hardcopy FCC Form 159 with their fee payment; i.e., the assessment 
notifications cannot be used as a substitute for a completed Form 159.
---------------------------------------------------------------------------

    \64\ The Commission-authorized Web site for media services 
licensees is http://www.fccfees.com.
---------------------------------------------------------------------------

d. Commercial Mobile Radio Service Cellular and Mobile Services 
Assessments
    37. As we have done in prior years, we will send assessment letters 
to CMRS providers using Numbering Resource Utilization Forecast 
(``NRUF'') data that is based on ``assigned'' number counts that have 
been adjusted for porting to net Type 0 ports (``in'' and ``out'').\65\ 
The letters will not include Operating Company Numbers (``OCNs'') with 
their respective assigned number counts, but rather, OCNs with an 
aggregate total of assigned numbers for each carrier. As in prior 
years, carriers will be given an opportunity to amend their subscriber 
counts listed on the assessment letter.
---------------------------------------------------------------------------

    \65\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2005 and Assessment and Collection of Regulatory Fees for 
Fiscal Year 2004, MD Docket Nos. 05-59 and 04-73, Report and Order 
and Order on Reconsideration, 20 FCC Rcd 12259, 12264, paras. 38-44 
(2005).
---------------------------------------------------------------------------

    38. If the number of subscribers on the assessment letter differs 
from the subscriber count the service provider provided on its NRUF 
form, the provider may correct its subscriber count by returning the 
assessment letter or by contacting 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.
    39. If we receive no response or correction to our initial 
assessment letter, we will expect the provider's section 9 fee payment 
to be based on the number of subscribers listed on that letter. We will 
review all amendments to assessment letters and determine whether a 
change in the number of subscribers is warranted. We will then generate 
and mail a final assessment letter. The final assessment letter will 
inform carriers as to whether or not we accept the amended subscriber 
count.
    40. Although an initial and a final assessment letter will be 
mailed to CMRS providers that have filed an NRUF form, some providers 
may not be sent assessment letters if they did not file the NRUF form. 
These providers shall compute their section 9 fee payment using the 
standard methodology \66\ that is currently in place for CMRS Wireless 
services (e.g., compute their subscriber counts as of December 31, 
2006), and submit their payment accordingly, either via Fee Filer, or 
attached to a completed hardcopy FCC Form 159. However, regardless of 
whether a provider receives an assessment letter or calculates its 
subscriber count independently, the Commission may audit the number of 
subscribers for which section 9 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

[[Page 45915]]

initial assessment letter, the Commission will assess the carrier for 
the difference between what was paid and what should have been paid.
---------------------------------------------------------------------------

    \66\ Federal Communications Commission, Regulatory Fees Fact 
Sheet: What You Owe--Commercial Wireless Services for FY 2005 at 1 
(rel. Jul. 2005).
---------------------------------------------------------------------------

    41. Aggregate Subscriber Levels. Also in our FY 2007 NPRM, we noted 
that last year we eliminated the requirement for CMRS providers to 
identify their individual call signs when making their section 9 fee 
payment. This simplified the payment process for all CMRS providers by 
enabling them to pay their section 9 fees at the aggregate level.\67\ 
In our FY 2007 NPRM, we proposed to continue this practice and we 
received no comment. We shall therefore continue to allow CMRS 
providers to pay their section 9 fees at the aggregate subscriber 
level.
---------------------------------------------------------------------------

    \67\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092, 
8105, para. 48 (2006).
---------------------------------------------------------------------------

    42. Consolidated CMRS Section 9 Fee Categories. Finally, in our FY 
2007 NPRM, we proposed to consolidate the CMRS cellular and CMRS mobile 
fee categories into one CMRS fee category. This action would eliminate 
the need for CMRS providers to separate their subscriber counts into 
CMRS cellular and CMRS mobile fee categories during the fee payment 
process. At one time, the Commission perceived a need to monitor the 
CMRS cellular and CMRS mobile fee categories separately.\68\ However, 
we deem this no longer necessary and therefore proposed to reduce 
administrative burdens on CMRS providers by consolidating the two 
categories into one. We received no specific comment on this proposal. 
We will therefore consolidate our CMRS mobile category (which would 
have been payment type code 0712 in FY 2007) into the CMRS cellular 
category (payment type code 0711 in FY 2007). On a going forward basis, 
all CMRS cellular and mobile providers shall make their section 9 fee 
payments using the Commission's payment type code --11. This procedural 
change does not affect CMRS Messaging (Paging) providers, who will 
continue to make their section 9 fee payment using fee code 0713 in FY 
2007 and --13 in the outyears.
---------------------------------------------------------------------------

    \68\ In our FY 1998 Report and Order, the Commission classified 
Wireless Communications Service (``WCS''), which included Personal 
Communications Services (Part 24), as a CMRS Mobile Service, stating 
that CMRS is ``an `umbrella' descriptive term attributed to various 
existing broadband services authorized to provide interconnected 
mobile radio services'' \68\ However, beginning in FY 1998, a 
separate fee code was provided for Personal Communications Service 
(``PCS'') to monitor the number of units in this service category.
---------------------------------------------------------------------------

e. Cable Television Subscribers
    43. In our FY 2007 NRPM, we proposed to continue to permit cable 
television operators to base their regulatory fee payment on their 
company's aggregate year-end subscriber count, rather than requiring 
them to sub-report subscriber counts on a per community unit identifier 
(CUID) basis.\69\ This practice has worked well for the Commission the 
past three fiscal years and has eased administrative burdens for the 
cable television industry. One commenter supports this proposal.\70\ We 
received no opposing comments, and will thereby continue to employ this 
payment procedure this fiscal year.
---------------------------------------------------------------------------

    \69\ See FY 2007 NPRM, 22 FCC Rcd at 7983, para. 28.
    \70\ ACA Comments at 2.
---------------------------------------------------------------------------

    44. We also proposed to send an e-mail reminder to addresses 
populated in the Media Bureau's Cable Operations and Licensing System 
(``COALS''), as we did last year, to notify recipients of the FY 2007 
regulatory fee payment due date and the fee amount for basic cable 
television subscribers. Cable television operators are required to file 
their cable-related forms at the Commission via the COALS Web site. To 
date, more than 98 percent of all cable operators have their email 
addresses recorded in the database. One commenter supports this 
proposal.\71\ We received no opposing comments, and will therefore send 
an e-mail reminder to cable operators again this fiscal year.
---------------------------------------------------------------------------

    \71\ ACA Comments at 2.
---------------------------------------------------------------------------

    45. Sending reminders via e-mail has proven to be an effective 
practice and we therefore proposed to discontinue our other practice of 
sending fee assessment letters via surface mail to cable television 
operators who are on file as having paid regulatory fees the previous 
fiscal year. One commenter asks the Commission to continue sending fee 
assessment letters via surface mail to cable operators that serve fewer 
than 5,000 subscribers, stating that these operators rely exclusively 
on the U.S. postal service for their day-to-day operations.\72\ We 
decline the commenter's request. After conducting this assessment 
initiative for three years, we have concluded that it is inadequate for 
accurate assessment purposes and we will instead direct the 
Commission's resources towards more useful fee collection activities. 
In addition, we note that we make available all relevant regulatory fee 
material on our Web site. If regulatees cannot access the Internet to 
obtain the necessary information for paying their regulatory fees, they 
may request such information to be sent via surface mail by contacting 
the FCC Financial Operations HelpDesk at (877) 480-3201, Option 4.
---------------------------------------------------------------------------

    \72\ ACA Comments at 3.
---------------------------------------------------------------------------

III. Procedural Matters

A. Payment of Regulatory Fees

1. De Minimis Fee Payment Liability
    46. Consistent with past practice, regulatees whose total FY 2007 
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 2007 regulatory fees.
2. Standard Fee Calculations and Payment Dates
    47. The Commission will, for the convenience of payers, accept fee 
payments made in advance of the 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 initial 
construction permits that were granted on or before October 1, 2006 for 
AM/FM radio stations, VHF/UHF television stations and satellite 
television stations. Regulatory fees must be paid for all broadcast 
facility licenses granted on or before October 1, 2006. In instances 
where a permit or license is transferred or assigned after October 1, 
2006, responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
    (b) Wireline (Common Carrier) Services: Regulatory fees must be 
paid for authorizations that were granted on or before October 1, 2006. 
In instances where a permit or license is transferred or assigned after 
October 1, 2006, responsibility for payment rests with the holder of 
the permit or license as of the fee due date.
    (c) Wireless Services: CMRS cellular, mobile, and messaging 
services (fees based upon a subscriber, unit or circuit count): 
Regulatory fees must be paid for authorizations that were granted on or 
before October 1, 2006. The number of subscribers, units or circuits on 
December 31, 2006 will be used as the basis from which to calculate the 
fee payment.
    The first eleven regulatory fee categories in our Schedule of 
Regulatory Fees (see Attachment D) pay what we refer to as ``small 
multi-year wireless regulatory fees.'' Entities pay these regulatory 
fees in advance for the entire amount of their 5-year or 10-year term 
of initial license, and only pay

[[Page 45916]]

regulatory fees again for the license at the time its next renewal. So 
while we include these eleven categories in our Schedule of Regulatory 
Fees to publicize the fee amounts, we do not actually collect these 
fees on an annual basis.
    (d) Multichannel Video Programming Distributor Services (cable 
television operators and CARS licensees): Regulatory fees must be paid 
for the number of basic cable television subscribers as of December 31, 
2006.\73\ Regulatory fees also must be paid for CARS licenses that were 
granted on or before October 1, 2006. In instances where a CARS license 
is transferred or assigned after October 1, 2006, responsibility for 
payment rests with the holder of the license as of the fee due date.
---------------------------------------------------------------------------

    \73\ 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 change 
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 2006, rather than on a count as of December 31, 
2006.
---------------------------------------------------------------------------

    (e) International Services: Regulatory fees must be paid for earth 
stations, geostationary orbit space stations and non-geostationary 
orbit satellite systems that were licensed and operational on or before 
October 1, 2006. In instances where a license is transferred or 
assigned after October 1, 2006, responsibility for payment rests with 
the holder of the license as of the fee due date. Regulatory fees must 
be paid for international bearer circuits, the payments of which are 
determined by the number of active circuits as of December 31, 
2006.\74\
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    \74\ 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 2004 at 3 (rel. July 2004) (the fact sheet is 
available on the FCC Web site at: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-249904A4.pdf). On February 6, 2006, VSNL 
Telecommunications (US) Inc. filed a Petition for Rulemaking urging 
the Commission to reform the current International Bearer Circuit 
Fee rules and policies as applied to non-common carrier submarine 
cable operators. See Petition for Rulemaking of VSNL 
Telecommunications (US) Inc., RM-11312 (filed Feb. 6, 2006). This 
Petition remains pending before the Commission, which has issued a 
Public Notice requesting comment on the petition. See Consumer and 
Governmental Affairs Bureau, Reference Information Center, Public 
Notice, Report No. 2759 (rel. Feb. 15, 2006). The Commission intends 
to resolve the complex issues presented by this Petition separately, 
and any comments on these issues filed in the instant proceeding 
will be incorporated into, and addressed, with those filed on the 
Petition for Rulemaking.
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B. Enforcement

    48. As a reminder to all licensees, section 159(c) of the 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 47 
CFR 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. In case of partial 
payments (underpayments) of regulatory fees, 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, then the 25 percent late charge 
penalty (and other charges and/or sanctions, as appropriate) will be 
assessed on the portion that is not paid in a timely manner.
    49. 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. See 47 CFR 
1.1161(c), 1.1164(f)(5), and 1.1910. 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).

C. Final Paperwork Reduction Act of 1995 Analysis

    50. This Report and Order contains modified information collection 
requirements subject to the Paperwork Reduction Act of 1995 (PRA), 
Public Law 104-13. It will be submitted to the Office of Management and 
Budget (OMB) for review under Section 3507(d) of the PRA. OMB, the 
general public, and other Federal agencies are invited to comment on 
the new or modified information collection requirements contained in 
this proceeding. In addition, we note that pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4), we previously sought specific comment on how the 
Commission might ``further reduce the information collection burden for 
small business concerns with fewer than 25 employees.''

D. Congressional Review Act Analysis

    51. The Commission will send a copy of this Report and Order and 
Further Notice of Proposed Rulemaking 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

    52. 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 2007 section 9 regulatory 
fee assessment requirements are adopted as specified herein.
    53. It is further ordered that Part 1 of the Commission's Rules are 
amended as set forth in Attachment H, and the these Rules shall become 
effective 30 days after publication in the Federal Register, except 
that changes to the Schedule of Regulatory Fees made pursuant to 
section 9(b)(3) of the Communications Act, and incorporating regulatory 
fee payment obligations for interconnected VoIP service providers, 
shall become effective 90 days after notification to Congress.
    54. 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 and Further Notice of Proposed 
Rulemaking,

[[Page 45917]]

including the Final Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the U.S. Small Business Administration.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Attachment A--Final Regulatory Flexibility Analysis

    55. As required by the Regulatory Flexibility Act (``RFA''),\75\ 
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 2007.\76\ Written public comments were sought on 
the FY 2007 fees proposal, including comments on the IRFA. This present 
Final Regulatory Flexibility Analysis (``FRFA'') conforms to the 
RFA.\77\
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    \75\ 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'').
    \76\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2007, Notice of Proposed Rulemaking, 22 FCC Rcd 7975 (2007) 
(``FY 2007 NPRM'').
    \77\ 5 U.S.C. 604.
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I. Need for, and Objectives of, the Proposed Rules

    56. This rulemaking proceeding is initiated to amend the Schedule 
of Regulatory Fees in the amount of $290,295,160, the amount that 
Congress has required the Commission to recover. The Commission seeks 
to collect the necessary amount through its revised Schedule of 
Regulatory Fees in the most efficient manner possible and without undue 
public burden.

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

    57. None.

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

    58. 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, if adopted.\78\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \79\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\80\ 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.\81\
---------------------------------------------------------------------------

    \78\ 5 U.S.C. 603(b)(3).
    \79\ 5 U.S.C. 601(6).
    \80\ 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.''
    \81\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    59. Small Businesses. Nationwide, there are a total of 22.4 million 
small businesses, according to SBA data.\82\
---------------------------------------------------------------------------

    \82\ See SBA, Programs and Services, SBA Pamphlet No. CO-0028, 
at page 40 (July 2002).
---------------------------------------------------------------------------

    60. Small Organizations. Nationwide, there are approximately 1.6 
million small organizations.\83\
---------------------------------------------------------------------------

    \83\ Independent Sector, The New Nonprofit Almanac & Desk 
Reference (2002).
---------------------------------------------------------------------------

    61. Small Governmental Jurisdictions. The term ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, towns, 
townships, villages, school districts, or special districts, with a 
population of less than fifty thousand.'' \84\ Census Bureau data for 
2002 indicate that there were 87,525 local governmental jurisdictions 
in the United States.\85\ We estimate that, of this total, 84,377 
entities were ``small governmental jurisdictions.'' \86\ Thus, we 
estimate that most governmental jurisdictions are small.
---------------------------------------------------------------------------

    \84\ 5 U.S.C. 601(5).
    \85\ U.S. Census Bureau, Statistical Abstract of the United 
States: 2006, Section 8, page 272, Table 415.
    \86\ We assume that the villages, school districts, and special 
districts are small, and total 48,558. See U.S. Census Bureau, 
Statistical Abstract of the United States: 2006, section 8, page 
273, Table 417. For 2002, Census Bureau data indicate that the total 
number of county, municipal, and township governments nationwide was 
38,967, of which 35,819 were small. Id.
---------------------------------------------------------------------------

    62. 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.'' 
\87\ 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.\88\ 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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    \87\ 15 U.S. C. 632.
    \88\ 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).
---------------------------------------------------------------------------

    63. 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.\89\ According to 
Commission data,\90\ 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.
---------------------------------------------------------------------------

    \89\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) code 517110.
    \90\ 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.
---------------------------------------------------------------------------

    64. 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.\91\ According to Commission data,\92\ 769 carriers have 
reported that they are engaged in the provision of either competitive 
access provider services or competitive local exchange carrier 
services. Of these 769 carriers, an estimated 676 have 1,500 or fewer 
employees and 94 have more than 1,500

[[Page 45918]]

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

    \91\ 13 CFR 121.201, NAICS code 517110.
    \92\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    65. 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.\93\ According to Commission data,\94\ 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 of local resellers are small entities that 
may be affected by these rules.
---------------------------------------------------------------------------

    \93\ 13 CFR 121.201, NAICS code 517310.
    \94\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    66. 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.\95\ According to Commission data,\96\ 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.
---------------------------------------------------------------------------

    \95\ 13 CFR 121.201, NAICS code 517310.
    \96\ ``Trends in Telepone Service'' at Table 5.3.
---------------------------------------------------------------------------

    67. 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.\97\ According to Commission data,\98\ 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.
---------------------------------------------------------------------------

    \97\ 3 CFR 121.201, NAICS code 517110.
    \98\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    68. 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.\99\ According to Commission data,\100\ 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.
---------------------------------------------------------------------------

    \99\ 13 CFR 121.201, NAICS code 517110.
    \100\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    69. 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.\101\ According to Commission data,\102\ 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.
---------------------------------------------------------------------------

    \101\ 13 CFR 121.201, NAICS code 517110.
    \102\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    70. 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.\103\ According to Commission data,\104\ 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.
---------------------------------------------------------------------------

    \103\ 13 CFR 121.201, NAICS code 517310.
    \104\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    71. 800 and 800-Like Service Subscribers.\105\ 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.\106\ 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.\107\ 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 independently owned 
and operated or have 1,500 or fewer 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.
---------------------------------------------------------------------------

    \105\ We include all toll-free number subscribers in this 
category, including those for 888 numbers.
    \106\ 13 CFR 121.201, NAICS code 517310.
    \107\ ``Trends in Telephone Service'' at Tables 18.4, 18.5, 
18.6, and 18.7.
---------------------------------------------------------------------------

    72. International Service Providers. There is no small business 
size standard developed specifically for providers of international 
service. The appropriate size standards under SBA rules are for the two 
broad census categories of ``Satellite Telecommunications'' and ``Other 
Telecommunications.'' Under both categories, such a business is small 
if it has $13.5 million or less in average annual receipts.\108\
---------------------------------------------------------------------------

    \108\ 13 CFR 121.201 , NAICS codes 517410 and 517910.
---------------------------------------------------------------------------

    73. The first category of Satellite Telecommunications ``comprises 
establishments primarily engaged in providing point-to-point 
telecommunications services to other establishments in the 
telecommunications and broadcasting industries by forwarding and 
receiving communications signals via a system of satellites or 
reselling satellite

[[Page 45919]]

telecommunications.'' \109\ For this category, Census Bureau data for 
2002 show that there were a total of 371 firms that operated for the 
entire year.\110\ Of this total, 307 firms had annual receipts of under 
$10 million, and 26 firms had receipts of $10 million to 
$24,999,999.\111\ Consequently, we estimate that the majority of 
Satellite Telecommunications firms are small entities that might be 
affected by our action.
---------------------------------------------------------------------------

    \109\ U.S. Census Bureau, 2002 NAICS Definitions, ``517410 
Satellite Telecommunications''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
    \110\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 4, NAICS code 517410 (issued Nov. 2005).
    \111\ Id. An additional 38 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    74. The second category of Other Telecommunications ``comprises 
establishments primarily engaged in (1) providing specialized 
telecommunications applications, such as satellite tracking, 
communications telemetry, and radar station operations; or (2) 
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.'' \112\ For this category, 
Census Bureau data for 2002 show that there were a total of 332 firms 
that operated for the entire year.\113\ Of this total, 259 firms had 
annual receipts of under $10 million and 15 firms had annual receipts 
of $10 million to $24,999,999.\114\ Consequently, we estimate that the 
majority of Other Telecommunications firms are small entities that 
might be affected by our action.
---------------------------------------------------------------------------

    \112\ U.S. Census Bureau, 2002 NAICS Definitions, ``517910 Other 
Telecommunications''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
    \113\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 4, NAICS code 517910 (issued Nov. 2005).
    \114\ Id. An additional 14 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    75. Wireless Service Providers. The SBA has developed a small 
business size standard for wireless firms within the two broad economic 
census categories of ``Paging'' \115\ and ``Cellular and Other Wireless 
Telecommunications.'' \116\ Under both categories, the SBA deems a 
wireless business to be small if it has 1,500 or fewer employees. For 
the census category of Paging, Census Bureau data for 2002 show that 
there were 807 firms in this category that operated for the entire 
year.\117\ Of this total, 804 firms had employment of 999 or fewer 
employees, and three firms had employment of 1,000 employees or 
more.\118\ Thus, under this category and associated small business size 
standard, the majority of firms can be considered small. For the census 
category of Cellular and Other Wireless Telecommunications, Census 
Bureau data for 2002 show that there were 1,397 firms in this category 
that operated for the entire year.\119\ Of this total, 1,378 firms had 
employment of 999 or fewer employees, and 19 firms had employment of 
1,000 employees or more.\120\ Thus, under this second category and size 
standard, the majority of firms can, again, be considered small.
---------------------------------------------------------------------------

    \115\ 13 CFR 121.201, NAICS code 517211.
    \116\ 13 CFR 121.201, NAICS code 517212.
    \117\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 517211 (issued Nov. 2005).
    \118\ 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 for firms with ``1000 
employees or more.''.
    \119\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 517212 (issued Nov. 2005).
    \120\ 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 for firms with ``1000 
employees or more.''
---------------------------------------------------------------------------

    76. 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.'' \121\ Under the SBA size standard, 
such a business is small if it has average annual receipts of $21 
million or less.\122\ According to Census Bureau data for 1997, there 
were 2,751 firms in this category that operated for the entire 
year.\123\ 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.\124\ Thus, under this size standard, the great 
majority of firms can be considered small entities.
---------------------------------------------------------------------------

    \121\ Office of Management and Budget, North American Industry 
Classification System, page 515 (1997). NAICS code 518111, ``On-Line 
Information Services.''.
    \122\ 13 CFR 121.201, NAICS code 518111.
    \123\ 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 Oct. 2000)..
    \124\ Id.
---------------------------------------------------------------------------

    77. Cellular Licensees. The SBA has developed a small business size 
standard for wireless firms within the two broad economic census 
categories of ``Paging'' \125\ and ``Cellular and Other Wireless 
Telecommunications.'' \126\ Under both categories, the SBA deems a 
wireless business to be small if it has 1,500 or fewer employees. For 
the census category of Paging, Census Bureau data for 2002 show that 
there were 807 firms in this category that operated for the entire 
year.\127\ Of this total, 804 firms had employment of 999 or fewer 
employees, and three firms had employment of 1,000 employees or 
more.\128\ Thus, under this category and associated small business size 
standard, the majority of firms can be considered small. For the census 
category of Cellular and Other Wireless Telecommunications, Census 
Bureau data for 2002 show that there were 1,397 firms in this category 
that operated for the entire year.\129\ Of this total, 1,378 firms had 
employment of 999 or fewer employees, and 19 firms had employment of 
1,000 employees or more.\130\ Thus, under this second category and size 
standard, the majority of firms can, again, be considered small.
---------------------------------------------------------------------------

    \125\ 13 CFR 121.201, NAICS code 517211.
    \126\ 13 CFR 121.201, NAICS code 517212.
    \127\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization,'' Table 5, NAICS code 517211 (issued Nov. 2005).
    \128\ 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 for firms with ``1000 
employees or more.''
    \129\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization,'' Table 5, NAICS code 517212 (issued Nov. 2005).
    \130\ 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 for firms with ``1000 
employees or more.''
---------------------------------------------------------------------------

    78. Common Carrier Paging. As noted, the SBA has developed a small 
business size standard for wireless firms within the broad economic 
census categories of ``Cellular and Other Wireless 
Telecommunications.'' \131\ 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.\132\ 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.\133\ Thus, under this category and

[[Page 45920]]

associated small business size standard, the great majority of firms 
can be considered small.
---------------------------------------------------------------------------

    \131\ 13 CFR 121.201, NAICS code 517212.
    \132\ 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 Oct. 2000).
    \133\ 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 Oct. 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.''
---------------------------------------------------------------------------

    79. In addition, 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.\134\ 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.\135\ The SBA has approved this 
definition.\136\ 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 sold.\137\ Fifty-seven 
companies claiming small business status won 440 licenses.\138\ 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.\139\ 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.\140\ Currently, there are approximately 
74,000 Common Carrier Paging licenses. According to the most recent 
Trends in Telephone Service, 408 private and common carriers reported 
that they were engaged in the provision of either paging or ``other 
mobile'' services.\141\ Of these, we estimate that 589 are small, under 
the SBA-approved small business size standard.\142\ We estimate that 
the majority of common carrier paging providers would qualify as small 
entities under the SBA definition.
---------------------------------------------------------------------------

    \134\ 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).
    \135\ Paging Second Report and Order, 12 FCC Rcd at 2811, para. 
179.
    \136\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, from Aida 
Alvarez, Administrator, Small Business Administration, dated Dec. 2, 
1998.
    \137\ See ``929 and 931 MHz Paging Auction Closes,'' Public 
Notice, 15 FCC Rcd 4858 (WTB 2000).
    \138\ Id.
    \139\ See ``Lower and Upper Paging Band Auction Closes,'' Public 
Notice, 16 FCC Rcd 21821 (WTB 2002).
    \140\ See ``Lower and Upper Paging Bands Auction Closes,'' 
Public Notice, 18 FCC Rcd 11154 (WTB 2003).
    \141\ ``Trends in Telephone Service'' at Table 5.3.
    \142\ 13 CFR 121.201, NAICS code 517211.
---------------------------------------------------------------------------

    80. 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.\143\ The SBA has 
approved these definitions.\144\ 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.
---------------------------------------------------------------------------

    \143\ 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).
    \144\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, FCC, from 
Aida Alvarez, Administrator, SBA (Dec. 2, 1998).
---------------------------------------------------------------------------

    81. 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.\145\ Under the SBA small business size standard, a business 
is small if it has 1,500 or fewer employees.\146\ According to Trends 
in Telephone Service data, 437 carriers reported that they were engaged 
in wireless telephony.\147\ We have estimated that 260 of these are 
small under the SBA small business size standard.
---------------------------------------------------------------------------

    \145\ 13 CFR 121.201, NAICS code 517212.
    \146\ Id.
    \147\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    82. 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.\148\ 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.\149\ These 
small business size standards, in the context of broadband PCS 
auctions, have been approved by the SBA.\150\ 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.\151\ On March 23, 
1999, the Commission reauctioned 155 C, D, E, and F Block licenses; 
there were 113 small business winning bidders.\152\
---------------------------------------------------------------------------

    \148\ 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).
    \149\ 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.
    \150\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, FCC, from 
Aida Alvarez, Administrator, SBA (Dec. 2, 1998).
    \151\ FCC News, ``Broadband PCS, D, E and F Block Auction 
Closes,'' No. 71744 (rel. Jan. 14, 1997).
    \152\ See ``C, D, E, and F Block Broadband PCS Auction Closes,'' 
Public Notice, 14 FCC Rcd 6688 (WTB 1999).
---------------------------------------------------------------------------

    83. 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.\153\ 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. On February 15, 2005, the 
Commission completed an auction of 188 C block licenses and 21 F block 
licenses in Auction No. 58. There were

[[Page 45921]]

24 winning bidders for 217 licenses.\154\ Of the 24 winning bidders, 16 
claimed small business status and won 156 licenses. On May 21, 2007, 
the Commission completed an auction of 38 Broadband PCS licenses in 
Auction No. 71, of which 26 were C block licenses and 6 were F block 
licenses. There were 12 winning bidders for the 33 C and F block 
licenses. Of the 12 winning bidders, four claimed small business status 
and won 16 licenses.
---------------------------------------------------------------------------

    \153\ See ``C and F Block Broadband PCS Auction Closes; Winning 
Bidders Announced,'' Public Notice, 16 FCC Rcd 2339 (2001).
    \154\ See ``Broadband PCS Spectrum Auction Closes; Winning 
Bidders Announced for Auction No. 58,'' Public Notice, 20 FCC Rcd 
3703 (2005).
---------------------------------------------------------------------------

    84. 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.\155\ Through these auctions, the Commission awarded a 
total of 41 licenses, 11 of which were obtained by four small 
businesses.\156\ 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 
Order.\157\ 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.\158\ 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.\159\ The SBA has approved 
these small business size standards.\160\ 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.\161\ Three of 
these claimed status as a small or very small entity and won 311 
licenses.
---------------------------------------------------------------------------

    \155\ 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).
    \156\ 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 (rel. 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 (rel. Nov. 9, 1994).
    \157\ 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).
    \158\ Id.
    \159\ Id.
    \160\ 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 Dec. 2, 1998.
    \161\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16 
FCC Rcd 18663 (WTB 2001).
---------------------------------------------------------------------------

    85. 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.\162\ 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.\163\ 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.\164\ 
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.\165\ The SBA has approved these 
small size standards.\166\ 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.\167\ 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.\168\ 
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.\169\ On July 26, 2005, the Commission 
completed an auction of 5 licenses in the Lower 700 MHz band (Auction 
No. 60). There were three winning bidders for five licenses. All three 
winning bidders claimed small business status.
---------------------------------------------------------------------------

    \162\ See Reallocation and Service Rules for the 698-746 MHz 
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC 
Rcd 1022 (2002).
    \163\ 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).
    \164\ Id.
    \165\ See id. at 1088, para. 173.
    \166\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
Aug. 10, 1999.
    \167\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice, 
17 FCC Rcd 17272 (WTB 2002).
    \168\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice, 
18 FCC Rcd 11873 (WTB 2003).
    \169\ See id.
---------------------------------------------------------------------------

    86. Upper 700 MHz Band Licenses. The Commission released a Report 
and Order, authorizing service in the upper 700 MHz band.\170\ This 
auction, previously scheduled for January 13, 2003, has been 
postponed.\171\
---------------------------------------------------------------------------

    \170\ See 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).
    \171\ 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).
---------------------------------------------------------------------------

    87. 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.\172\ 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.\173\ 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.\174\ SBA approval 
of these definitions is not required.\175\ An auction of 52 Major 
Economic Area (MEA) licenses commenced on September 6, 2000, and closed 
on September 21, 2000.\176\ 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

[[Page 45922]]

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

    \172\ 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).
    \173\ 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).
    \174\ See id.
    \175\ See id. at 5343, 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).
    \176\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders 
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
    \177\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders 
Announced,'' Public Notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------

    88. 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.\178\ 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.\179\ The SBA has 
approved these small business size standards for the 900 MHz 
Service.\180\ 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 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.\181\ 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.\182\
---------------------------------------------------------------------------

    \178\ 47 CFR 90.814(b)(1).
    \179\ 47 CFR 90.814(b)(1).
    \180\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
Aug. 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.
    \181\ 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).
    \182\ See ``Multi-Radio Service Auction Closes,'' Public Notice, 
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------

    89. 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.\183\ 
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.\184\ 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.
---------------------------------------------------------------------------

    \183\ 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).
    \184\ See ``800 MHz SMR Service Lower 80 Channels Auction 
Closes; Winning Bidders Announced,'' Public Notice, 16 FCC Rcd 1736 
(2000).
---------------------------------------------------------------------------

    90. 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.
    91. 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.\185\ The Commission estimates that most such licensees are 
small businesses under the SBA's small business standard.
---------------------------------------------------------------------------

    \185\ 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    92. 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.\186\ 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.\187\ 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.\188\ The SBA 
has approved these small size standards.\189\ Auctions of Phase II 
licenses commenced on September 15, 1998, and closed on October 22, 
1998.\190\ 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.\191\ 
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.\192\ 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.\193\
---------------------------------------------------------------------------

    \186\ 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).
    \187\ Id. at 11068, para. 291.
    \188\ Id.
    \189\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, 
SBA, (Jan. 6, 1998).
    \190\ See generally ``220 MHz Service Auction Closes,'' Public 
Notice, 14 FCC Rcd 605 (1998).
    \191\ 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 (1999).
    \192\ See ``Phase II 220 MHz Service Spectrum Auction Closes,'' 
Public Notice, 14 FCC Rcd 11218 (1999).
    \193\ See ``Multi-Radio Service Auction Closes,'' Public Notice, 
17 FCC Rcd 1446 (2002).
---------------------------------------------------------------------------

    93. 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

[[Page 45923]]

determining whether a licensee of a PLMR system is a small business as 
defined by the SBA, we use the broad census category, ``Cellular and 
Other Wireless Telecommunications.'' This definition provides that a 
small entity is any such entity employing no more than 1,500 
persons.\194\ 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. We note that 
PLMR licensees generally use the licensed facilities in support of 
other business activities, and therefore, it would also be helpful to 
assess PLMR licensees under the standards applied to the particular 
industry subsector to which the licensee belongs.\195\
---------------------------------------------------------------------------

    \194\ See 13 CFR 121.201, NAICS code 517212..
    \195\ See generally 13 CFR 121.201.
---------------------------------------------------------------------------

    94. The Commission's 1994 Annual Report on PLMRs \196\ 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. We 
note that any entity engaged in a commercial activity is eligible to 
hold a PLMR license, and that the revised rules in this context could 
therefore potentially impact small entities covering a great variety of 
industries.
---------------------------------------------------------------------------

    \196\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at para. 116.
---------------------------------------------------------------------------

    95. Fixed Microwave Services. Fixed microwave services include 
common carrier,\197\ private operational-fixed,\198\ and broadcast 
auxiliary radio services.\199\ 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.\200\ The 
Commission does not have data specifying the number of these licensees 
that have no 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 22,015 or fewer common carrier fixed licensees 
and 61,670 or fewer 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 proposed herein. We note, 
however, that the common carrier microwave fixed licensee category 
includes some large entities.
---------------------------------------------------------------------------

    \197\ See 47 CFR 101 et seq. (formerly, Part 21 of the 
Commission's Rules) for common carrier fixed microwave services 
(except Multipoint Distribution Service).
    \198\ Persons eligible under parts 80 and 90 of the Commission's 
Rules can use Private Operational-Fixed Microwave services. See 47 
C.F.R. 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.
    \199\ 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.
    \200\ 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    96. 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.\201\ 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.\202\ 
The SBA has approved these small business size standards.\203\ 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.
---------------------------------------------------------------------------

    \201\ 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).
    \202\ Id.
    \203\ 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); See Letter to 
Margaret Wiener, Chief, Auctions and Industry Analysis Division, 
Wireless Telecommunications Bureau, FCC, from Hector Barreto, 
Administrator, SBA, (Jan. 18, 2002).)
---------------------------------------------------------------------------

    97. 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.\204\ The auction of the 986 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.\205\ 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.\206\ The SBA 
has approved these small business size standards in the context of LMDS 
auctions.\207\ 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 businesses winning that won 119 
licenses.
---------------------------------------------------------------------------

    \204\ 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).
    \205\ See id.
    \206\ See id.
    \207\ See Letter to Dan Phythyon, Chief, Wireless 
Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, 
SBA (Jan. 6, 1998).
---------------------------------------------------------------------------

    98. 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'').\208\ 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.\209\ 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.\210\ A very small 
business is defined as an entity that, together with its affiliates and 
persons or entities that

[[Page 45924]]

hold interests in such an entity and its affiliates, has average annual 
gross revenues not exceeding $3 million for the preceding three 
years.\211\ The SBA has approved of these definitions.\212\ A 
subsequent auction is not yet scheduled. 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 most, of the licenses may be 
awarded to small businesses.
---------------------------------------------------------------------------

    \208\ See ``Interactive Video and Data Service (IVDS) 
Applications Accepted for Filing,'' Public Notice, 9 FCC Rcd 6227 
(1994).
    \209\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330 
(1994).
    \210\ 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).
    \211\ Id.
    \212\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, 
SBA, (Jan. 6, 1998).
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    99. 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.\213\ 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.\214\ These definitions have been approved by the SBA.\215\ 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.
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    \213\ 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.
    \214\ Id.
    \215\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
Feb. 22, 1999.
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    100. Rural Radiotelephone Service. The Commission has not adopted a 
size standard for small businesses specific to the Rural Radiotelephone 
Service.\216\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio System (``BETRS'').\217\ In the 
present context, we will use 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.\218\ There are 
approximately 1,000 licensees in the Rural Radiotelephone Service, and 
the Commission estimates that there are 1,000 or fewer small entity 
licensees in the Rural Radiotelephone Service that may be affected by 
the rules adopted herein.
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    \216\ The service is defined in section 22.99 of the 
Commission's rules, 47 CFR 22.99.
    \217\ BETRS is defined in section 22.757 and 22.759 of the 
Commission's rules, 47 CFR 22.757 and 22.759.
    \218\ 13 CFR 121.201, NAICS code 517212.
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    101. Air-Ground Radiotelephone Service.\219\ We have previously 
used the SBA's small business definition applicable to ``Cellular and 
Other Wireless Telecommunications,'' i.e., an entity employing no more 
than 1,500 persons.\220\ There are approximately 100 licensees in the 
Air-Ground Radiotelephone Service, and under that definition, we 
estimate that almost all of them qualify as small entities under the 
SBA definition. For purposes of assigning Air-Ground Radiotelephone 
Service licenses through competitive bidding, 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 $40 million.\221\ 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 $15 million.\222\ These definitions 
were approved by the SBA.\223\ In May 2006, the Commission completed an 
auction of nationwide commercial Air-Ground Radiotelephone Service 
licenses in the 800 MHz band (Auction No. 65). On June 2, 2006, the 
auction closed with two winning bidders winning two Air-Ground 
Radiotelephone Services licenses. Neither of the winning bidders 
claimed small business status.
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    \219\ The service is defined in section 22.99 of the 
Commission's rules, 47 CFR 22.99.
    \220\ 13 CFR 121.201, NAICS codes 517212.
    \221\ Amendment of Part 22 of the Commission's Rules to Benefit 
the Consumers of Air-Ground Telecommunications Services, Biennial 
Regulatory Review--Amendment of Parts 1, 22, and 90 of the 
Commission's Rules, Amendment of Parts 1 and 22 of the Commission's 
Rules to Adopt Competitive Bidding Rules for Commercial and General 
Aviation Air-Ground Radiotelephone Service, WT Docket Nos. 03-103 
and 05-42, Order on Reconsideration and Report and Order, 20 FCC Rcd 
19663, paras. 28-42 (2005).
    \222\ Id.
    \223\ See Letter from Hector V. Barreto, Administrator, U.S. 
Small Business Administration, to Gary D. Michaels, Deputy Chief, 
Auctions and Spectrum Access Division, Wireless Telecommunications 
Bureau, Federal Communications Commission, dated Sept. 19, 2005.
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    102. 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, we will use the SBA small business size 
standard for the category ``Cellular and Other Telecommunications,'' 
which is 1,500 or fewer employees.\224\ 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.\225\ 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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    \224\ 13 CFR 121.201, NAICS code 517212.
    \225\ 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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    103. 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.\226\ There are presently 
approximately 55 licensees in this service. We are unable to estimate 
at this time the number of licensees that would qualify as small under 
the SBA's small business size standard for ``Cellular and Other 
Wireless Telecommunications'' services.\227\

[[Page 45925]]

Under that SBA small business size standard, a business is small if it 
has 1,500 or fewer employees.\228\
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    \226\ This service is governed by Subpart I of Part 22 of the 
Commission's rules. See 47 CFR 22.1001-22.1037.
    \227\ 13 CFR 121.201, NAICS code 517212.
    \228\ Id.
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    104. 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.\229\ ``Very small business'' is defined as an 
entity that, together with its affiliates, has average gross revenues 
of not more than $3 million for the preceding three calendar 
years.\230\ The SBA has approved of these definitions.\231\ 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.\232\ Seven winning bidders claimed status as small or very small 
businesses and won 611 licenses. On May 18, 2005, the Commission 
completed an auction (Auction No. 59) of 4,226 MAS licenses in the 
Fixed Microwave Services from the 928/959 and 932/941 MHz bands. 
Twenty-six winning bidders won a total of 2,323 licenses. Of the 26 
winning bidders in this auction, five claimed small business status and 
won 1,891 licenses.
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    \229\ See Amendment of the Commission's Rules Regarding Multiple 
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, para. 
123 (2000).
    \230\ Id.
    \231\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, 
SBA, (Jun. 4, 1999).
    \232\ See ``Multiple Address Systems Spectrum Auction Closes,'' 
Public Notice, 16 FCC Rcd 21011 (2001).
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    105. 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 small 
business size standard developed by the SBA would be more appropriate. 
The applicable size standard in this instance appears to be that of 
``Cellular and Other Wireless Telecommunications.'' This definition 
provides that a small entity is any such entity employing no more than 
1,500 persons.\233\ 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.
---------------------------------------------------------------------------

    \233\ See 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    106. 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.\234\ For the census category of Paging, Census Bureau data for 
2002 show that there were 807 firms in this category that operated for 
the entire year.\235\ Of this total, 804 firms had employment of 999 or 
fewer employees, and three firms had employment of 1,000 employees or 
more.\236\ Thus, under this category and associated small business size 
standard, the majority of firms can be considered small. For the census 
category of Cellular and Other Wireless Telecommunications, Census 
Bureau data for 2002 show that there were 1,397 firms in this category 
that operated for the entire year.\237\ Of this total, 1,378 firms had 
employment of 999 or fewer employees, and 19 firms had employment of 
1,000 employees or more.\238\ Thus, under this second category and size 
standard, the majority of firms can, again, 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 \239\ and TRW, Inc. It is our understanding that Teligent and 
its related companies have fewer 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.
---------------------------------------------------------------------------

    \234\ 13 CFR 121.201, NAICS code 517212.
    \235\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 517211 (issued Nov. 2005).
    \236\ 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 for firms with ``1000 
employees or more.''
    \237\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 517212 (issued Nov. 2005).
    \238\ 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 for firms with ``1000 
employees or more.''
    \239\ Teligent acquired the DEMS licenses of FirstMark, the only 
licensee other than TRW in the 24 GHz band whose license has been 
modified to require relocation to the 24 GHz band.
---------------------------------------------------------------------------

    107. New 24 GHz Licensees. With respect to new applicants in the 24 
GHz band, we have defined an ``entrepreneur'' as an entity that, 
together with controlling interests and affiliates, has average annual 
gross revenues for the three preceding years not exceeding $40 million. 
``Small business'' in the 24 GHz band is defined as an entity that, 
together with controlling interests and affiliates, has average annual 
gross revenues for the three preceding years not exceeding $15 
million.\240\ ``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.\241\ The SBA has approved these definitions.\242\ On July 28, 
2004, the Commission completed an auction of 880 licenses. There were 
three winning bidders that won seven licenses. Of the three winning 
bidders, two claimed small business status and won five licenses.
---------------------------------------------------------------------------

    \240\ 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).
    \241\ 24 GHz Report and Order, 15 FCC Rcd at 16967, para. 77; 
see also 47 CFR 101.538(a)(1).
    \242\ See Letter to Margaret W. Wiener, Deputy Chief, Auctions 
and Industry Analysis Division, Wireless Telecommunications Bureau, 
FCC, from Gary M. Jackson, Assistant Administrator, SBA, (Jul. 28, 
2000).
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    108. Broadband Radio Service (``BRS'') and Educational Broadband 
Service (``EBS''). Broadband Radio Service systems, previously referred 
to as Multipoint Distribution Service (``MDS'') and Multichannel 
Multipoint Distribution Service (``MMDS'') systems, and ``wireless 
cable,'' transmit video programming to subscribers and provide two-way 
high speed data operations using the microwave frequencies of the 
Broadband Radio Service and Educational Broadband Service (previously 
referred to as the Instructional Television Fixed Service

[[Page 45926]]

(``ITFS'').\243\ In connection with the 1996 BRS 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.\244\ The SBA 
has approved of this standard.\245\ The BRS auction resulted in 67 
successful bidders obtaining licensing opportunities for 493 Basic 
Trading Areas (``BTAs'').\246\ Of the 67 auction winners, 61 claimed 
status as a small business. At this time, we estimate that of the 61 
small business BRS auction winners, 48 remain small business licensees. 
BRS also includes licensees of stations authorized prior to the 
auction. In addition to the 48 small businesses that hold BTA 
authorizations, there are approximately 392 incumbent BRS licensees 
that are considered small entities.\247\ After adding the number of 
small business auction licensees to the number of incumbent licensees 
not already counted, we find that there are currently approximately 440 
BRS licenses that are defined as small businesses under either the SBA 
or the Commission's rules.
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    \243\ 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'').
    \244\ 47 CFR 21.961(b)(1).
    \245\ See Letter to Margaret Wiener, Chief, Auctions and 
Industry Analysis Division, Wireless Telecommunications Bureau, FCC, 
from Gary Jackson, Assistant Administrator for Size Standards, SBA, 
(Mar. 20, 2003) (noting approval of $40 million size standard for 
MDS auction).
    \246\ 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.
    \247\ For the incumbent BRS licensees who are granted licenses 
prior to implementation of Section 309(j) of the Communications Act 
of 1934, 47 U.S.C. 309(j), the applicable standard is SBA's small 
business size standard.
---------------------------------------------------------------------------

    109. In addition, the SBA has developed a small business size 
standard for Cable and Other Program Distribution,\248\ which includes 
all such companies generating $13.5 million or less in annual 
receipts.\249\ According to the Census Bureau data for 2002, there were 
a total of 1,191 firms in this category that operated for the entire 
year.\250\ Of this total, 1,087 firms had annual receipts of under $10 
million, and 43 firms had receipts of $10 million or more, but less 
than $25 million.\251\ Consequently, we estimate that the majority of 
providers in this service category are small businesses that may be 
affected by the rules and policies adopted herein. This SBA small 
business size standard is applicable to EBS. There are presently 2,032 
EBS licensees. All but 100 of these licenses are held by educational 
institutions. Educational institutions are included in this analysis as 
small entities.\252\ Thus, we estimate that at least 1,932 licensees 
are small entities. EBS is a non-profit non-broadcast service. We do 
not collect, nor are we aware of other collections of, annual revenue 
data for EBS licensees.
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    \248\ 13 CFR 121.201, NAICS code 517510.
    \249\ Id.
    \250\ U.S. Census Bureau 202 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the Untied States: 
2002, NAICS code 517510 (issued Nov. 2005).
    \251\ Id. An additional 61 firms had annual receipts of $25 
million or more.
    \252\ The term ``small entity'' within SBREFA applies to small 
organizations (nonprofits) and to small governmental jurisdictions 
(cities, counties, towns, townships, villages, school districts, and 
special districts with populations of less than 50,000). 5 U.S.C. 
601(4)-(6). We do not collect annual revenue data on EBS licensees.
---------------------------------------------------------------------------

    110. Television Broadcasting. The Census Bureau defines this 
category as follows: ``This industry comprises establishments primarily 
engaged in broadcasting images together with sound. These 
establishments operate television broadcasting studios and facilities 
for the programming and transmission of programs to the public.'' \253\ 
The SBA has created a small business size standard for Television 
Broadcasting entities, which is: such firms having $13 million or less 
in annual receipts.\254\ According to Commission staff review of the 
BIA Publications, Inc., Master Access Television Analyzer Database as 
of May 16, 2003, about 814 of the 1,220 commercial television stations 
in the United States had revenues of $12 (twelve) million or less. We 
note, however, that in assessing whether a business concern qualifies 
as small under the above definition, business (control) affiliations 
\255\ 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.
---------------------------------------------------------------------------

    \253\ U.S. Census Bureau, 2002 NAICS Definitions, ``515120 
Television Broadcasting'' (partial definition); http://www.census.gov/epcd/naics02/def/NDEF515.HTM.
    \254\ 13 CFR 121.201, NAICS code 515120.
    \255\ ``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 to power to control both.'' 13 CFR 
21.103(a)(1).
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    111. 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.
    112. There are also 2,117 low power television stations 
(LPTV).\256\ Given the nature of this service, we will presume that all 
LPTV licensees qualify as small entities under the above SBA small 
business size standard.
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    \256\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2005.''
---------------------------------------------------------------------------

    113. Radio Broadcasting. The SBA defines a radio broadcast entity 
that has $6 million or less in annual receipts as a small 
business.\257\ Business concerns included in this industry are those 
``primarily engaged in broadcasting aural programs by radio to the 
public.'' \258\ According to Commission staff review of the BIA 
Publications, Inc., Master Access Radio Analyzer Database, as of May 
16, 2003, about 10,427 of the 10,945 commercial radio stations in the 
United States have revenue of $6 million or less. We note, however, 
that many radio stations are affiliated with much larger corporations 
with much higher revenue, and that in assessing whether a business 
concern qualifies as small under the above definition, such business 
(control) affiliations \259\ are included.\260\ Our estimate, therefore 
likely overstates the number of small businesses that might be affected 
by the rules adopted herein.
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    \257\ See OMB, North American Industry Classification System: 
United States, 1997, at 509 (1997) (Radio Stations) NAICS code 
515112.
    \258\ Id.
    \259\ ``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).
    \260\ ``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).
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    114. 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

[[Page 45927]]

(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.\261\
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    \261\ 13 CFR 121.201, NAICS codes 513111 and 513112.
---------------------------------------------------------------------------

    115. The Commission estimates that there are approximately 3,868 FM 
translators and boosters.\262\ 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 ($6.5 million for a 
radio station or $13.0 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.\263\
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    \262\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2004.''
    \263\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    116. Cable and Other Program Distribution. The Census Bureau 
defines this category as follows: ``This industry comprises 
establishments primarily engaged as third-party distribution systems 
for broadcast programming. The establishments of this industry deliver 
visual, aural, or textual programming received from cable networks, 
local television stations, or radio networks to consumers via cable or 
direct-to-home satellite systems on a subscription or fee basis. These 
establishments do not generally originate programming material.'' \264\ 
The SBA has developed a small business size standard for Cable and 
Other Program Distribution, which is: all such firms having $13.5 
million or less in annual receipts.\265\ According to Census Bureau 
data for 2002, there were a total of 1,191 firms in this category that 
operated for the entire year.\266\ Of this total, 1,087 firms had 
annual receipts of under $10 million, and 43 firms had receipts of $10 
million or more but less than $25 million.\267\ Thus, under this size 
standard, the majority of firms can be considered small.
---------------------------------------------------------------------------

    \264\ U.S. Census Bureau, 2002 NAICS Definitions, ``517510 Cable 
and Other Program Distribution;'' http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
    \265\ 13 CFR 121.201, NAICS code 517510.
    \266\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the United States: 
2002, NAICS code 517510 (issued Nov. 2005).
    \267\ Id. An additional 61 firms had annual receipts of $25 
million or more.
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    117. Cable Companies and Systems. The Commission has also developed 
its own small business size standards, for the purpose of cable rate 
regulation. Under the Commission's rules, a ``small cable company'' is 
one serving 400,000 or fewer subscribers, nationwide.\268\ Industry 
data indicate that, of 1,076 cable operators nationwide, all but eleven 
are small under this size standard.\269\ In addition, under the 
Commission's rules, a ``small system'' is a cable system serving 15,000 
or fewer subscribers.\270\ Industry data indicate that, of 7,208 
systems nationwide, 6,139 systems have less than 10,000 subscribers, 
and an additional 379 systems have 10,000-19,999 subscribers.\271\ 
Thus, under this second size standard, most cable systems are small.
---------------------------------------------------------------------------

    \268\ 47 CFR 76.901(e). The Commission determined that this size 
standard equates approximately to a size standard of $100 million or 
less in annual revenues. Implementation of Sections of the 1992 
Cable Act: Rate Regulation, Sixth Report and Order and Eleventh 
Order on Reconsideration, 10 FCC Rcd 7393, 7408 (1995).
    \269\ These data are derived from: R.R. Bowker, Broadcasting & 
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8 
& C-2 (data current as of June 30, 2005); Warren Communications 
News, Television & Cable Factbook 2006, ``Ownership of Cable Systems 
in the United States,'' pages D-1805 to D-1857.
    \270\ 47 CFR 76.901(c).
    \271\ Warren Communications News, Television & Cable Factbook 
2006, ``U.S. Cable Systems by Subscriber Size,'' page F-2 (data 
current as of Oct. 2005). The data do not include 718 systems for 
which classifying data were not available.
---------------------------------------------------------------------------

    118. Cable System Operators. 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.''\272\ The Commission has determined that an operator 
serving fewer than 645,000 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.\273\ Industry data indicate that, of 1,076 cable operators 
nationwide, all but ten are small under this size standard.\274\ We 
note that the Commission neither requests nor collects information on 
whether cable system operators are affiliated with entities whose gross 
annual revenues exceed $250 million,\275\ and therefore we are unable 
to estimate more accurately the number of cable system operators that 
would qualify as small under this size standard.
---------------------------------------------------------------------------

    \272\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
    \273\ 47 CFR 76.901(f); see Public Notice, FCC Announces New 
Subscriber Count for the Definition of Small Cable Operator, DA 01-
158 (Cable Services Bureau, Jan. 24, 2001).
    \274\ These data are derived from: R.R. Bowker, Broadcasting & 
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8 
& C-2 (data current as of June 30, 2005); Warren Communications 
News, Television & Cable Factbook 2006, ``Ownership of Cable Systems 
in the United States,'' pages D-1805 to D-1857.
    \275\ 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 section 76.901(f) of the Commission's rules. See 47 CFR 
76.909(b).
---------------------------------------------------------------------------

    119. Open Video Services. Open Video Service (``OVS'') systems 
provide subscription services.\276\ The SBA has created a small 
business size standard for Cable and Other Program Distribution.\277\ 
This standard provides that a small entity is one with $13.5 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.\278\ 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 adopted herein.
---------------------------------------------------------------------------

    \276\ See 47 U.S.C. 573.
    \277\ 13 CFR 121.201, NAICS code 517510.
    \278\ See http://www.fcc.gov/csb/ovs/csovscer.html (current as 
of March 2002).
---------------------------------------------------------------------------

    120. Cable Television Relay Service. This service includes 
transmitters generally used to relay cable programming within cable 
television system distribution systems. The SBA has developed a small 
business size standard for Cable and Other Program

[[Page 45928]]

Distribution, which is: all such firms having $13.5 million or less in 
annual receipts.\279\ According to Census Bureau data for 2002, there 
were a total of 1,191 firms in this category that operated for the 
entire year.\280\ Of this total, 1,087 firms had annual receipts of 
under $10 million, and 43 firms had receipts of $10 million or more but 
less than $25 million.\281\ Thus, under this size standard, the 
majority of firms can be considered small.
---------------------------------------------------------------------------

    \279\ 13 CFR 121.201, NAICS code 517510.
    \280\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the United States: 
2002, NAICS code 517510 (issued Nov. 2005).
    \281\ Id. An additional 61 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    121. Multichannel Video Distribution and Data Service. MVDDS is a 
terrestrial fixed microwave service operating in the 12.2-12.7 GHz 
band. The Commission adopted criteria for defining three groups of 
small businesses for purposes of determining their eligibility for 
special provisions such as bidding credits. It defined a very small 
business as an entity with average annual gross revenues not exceeding 
$3 million for the preceding three years; a small business as an entity 
with average annual gross revenues not exceeding $15 million for the 
preceding three years; and an entrepreneur as an entity with average 
annual gross revenues not exceeding $40 million for the preceding three 
years.\282\ These definitions were approved by the SBA.\283\ On January 
27, 2004, the Commission completed an auction of 214 MVDDS licenses 
(Auction No. 53). In this auction, ten winning bidders won a total of 
192 MVDDS licenses.\284\ Eight of the ten winning bidders claimed small 
business status and won 144 of the licenses. The Commission also held 
an auction of MVDDS licenses on December 7, 2005 (Auction 63). Of the 
three winning bidders who won 22 licenses, two winning bidders, winning 
21 of the licenses, claimed small business status.\285\
---------------------------------------------------------------------------

    \282\ Amendment of Parts 2 and 25 of the Commission's Rules to 
Permit Operation of NGSO FSS Systems Co-Frequency with GSO and 
Terrestrial Systems in the Ku-Band Frequency Range; Amendment of the 
Commission's Rules to Authorize Subsidiary Terrestrial Use of the 
12.2-12.7 GHz Band by Direct Broadcast Satellite Licenses and their 
Affiliates; and Applications of Broadwave USA, PDC Broadband 
Corporation, and Satellite Receivers, Ltd. to provide A Fixed 
Service in the 12.2-12.7 GHz Band, ET Docket No. 98-206, Memorandum 
Opinion and Order and Second Report and Order, 17 FCC Rcd 9614, 
9711, para. 252 (2002).
    \283\ See Letter from Hector V. Barreto, Administrator, U.S. 
Small Business Administration, to Margaret W. Wiener, Chief, 
Auctions and Industry Analysis Division, Wireless Telecommunications 
Bureau, Federal Communications Commission, dated Feb. 13, 2002.
    \284\ See ``Multichannel Video Distribution and Data Service 
Auction Closes,'' Public Notice, 19 FCC Rcd 1834 (2004).
    \285\ See ``Auction of Multichannel Video Distribution and Data 
Service Licenses Closes; Winning Bidders Announced for Auction No. 
63,'' Public Notice, 20 FCC Rcd 19807 (2005).
---------------------------------------------------------------------------

    122. Amateur Radio Service. These licensees are held by individuals 
in a noncommercial capacity; these licensees are not small entities.
    123. 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.\286\ 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.\287\ 
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.
---------------------------------------------------------------------------

    \286\ 13 CFR 121.201, NAICS code 517212.
    \287\ Amendment of the Commission's Rules Concerning Maritime 
Communications, Third Report and Order and Memorandum Opinion and 
Order, 13 FCC Rcd 19853 (1998).
---------------------------------------------------------------------------

    124. 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.\288\ 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'').\289\ 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 adopted. 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.\290\ 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 adopted herein.
---------------------------------------------------------------------------

    \288\ 47 CFR part 90.
    \289\ 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.
    \290\ 13 CFR 121.201, NAICS Code 517212.
---------------------------------------------------------------------------

    125. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, highway 
maintenance, and emergency medical services.\291\

[[Page 45929]]

There are a total of approximately 127,540 licensees in these services. 
Governmental entities \292\ 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.\293\
---------------------------------------------------------------------------

    \291\ 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 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.
    \292\ 47 CFR 1.1162.
    \293\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

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

    126. 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 Remittance 
Advice, and pay a regulatory fee based on the number of licenses or 
call signs.\294\ 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.
---------------------------------------------------------------------------

    \294\ 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.
---------------------------------------------------------------------------

    127. 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.
    128. Licensees and regulatees are advised that failure to submit 
the required regulatory fee in a timely manner will subject the 
licensee or regulatee to a late payment penalty of 25 percent in 
addition to the required fee.\295\ If payment is not received, new or 
pending applications may be dismissed, and existing authorizations may 
be subject to rescission.\296\ Further, in accordance with the Debt 
Collection Improvement Act of 1996 (DCIA), Public Law 194-134, 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.\297\ Nonpayment of 
regulatory fees is a debt owed the United States pursuant to 31 U.S.C. 
3711 et seq., and the DCIA. 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.\298\
---------------------------------------------------------------------------

    \295\ 47 CFR 1.1164.
    \296\ 47 CFR 1.1164(c).
    \297\ Public Law 104-134, 110 Stat. 1321 (1996).
    \298\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

    129. 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.\299\ 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.
---------------------------------------------------------------------------

    \299\ 47 CFR 1.1166.
---------------------------------------------------------------------------

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

    130. 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.\300\ In the NPRM, we sought comment on alternatives that 
might simplify our fee procedures or otherwise benefit filers, 
including small entities, while remaining consistent with our statutory 
responsibilities in this proceeding.
---------------------------------------------------------------------------

    \300\ 5 U.S.C. 603.
---------------------------------------------------------------------------

    131. The Omnibus Appropriations Act for FY 2007, Public Law 109-
383, 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 FY 2007.\301\ As noted, we 
sought comment on the proposed methodology for implementing these 
statutory requirements and any other potential impact of these 
proposals on small entities.
---------------------------------------------------------------------------

    \301\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    132. Several categories of licensees and regulatees are exempt from 
payment of regulatory fees. See, e.g., footnote 294, supra. Also, 
waiver procedures provide regulatees, including small

[[Page 45930]]

entity regulatees, relief in exceptional circumstances. See Section IV, 
supra.
    133. 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.
    134. 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 2007

    In order to calculate individual service fees for FY 2007, we 
adjusted FY 2006 payment units for each service to more accurately 
reflect expected FY 2007 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 our Universal Licensing System (ULS), International 
Bureau Filing System (IBFS), Consolidated Database System (CDBS) and 
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 2007 estimates with actual FY 
2006 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 2007 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 2007 payment units are based 
on FY 2006 actual payment units, it does not necessarily mean that our 
FY 2007 projection is exactly the same number as FY 2006. It means that 
we have either rounded the FY 2007 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.
CMRS Mobile Services.........  Based on Wireless Telecommunications
                                Bureau reports.
CMRS Messaging Services......  Based on Wireless Telecommunications
                                Bureau Competition Report findings.
AM/FM Radio Stations.........  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2006 payment
                                units.
UHF/VHF Television Stations..  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2006 payment
                                units.
AM/FM/TV Construction Permits  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2006 payment
                                units.
LPTV, Translators and          Based on CDBS data, adjusted for
 Boosters, Class A Television.  exemptions, and actual FY 2006 payment
                                units.
Broadcast Auxiliaries........  Based on actual FY 2006 payment units.
BRS (formerly MDS/MMDS)......  Based on Wireless Telecommunications
                                Bureau reports and actual FY 2006
                                payment units.
Cable Television Relay         Based on data from Media Bureau's COALS
 Service (CARS) Stations.       database and actual FY 2006 payment
                                units.
Cable Television System        Based on publicly available data sources
 Subscribers.                   for estimated subscriber counts and
                                actual FY 2006 payment units.
Interstate Telecommunication   Based on actual FY 2006 interstate
 Service Providers.             revenues reported on Telecommunications
                                Reporting Worksheet, adjusted for FY
                                2007 revenue growth/decline for
                                industry, and projections by the
                                Wireline Competition Bureau.
Earth Stations...............  Based on International Bureau reports and
                                actual FY 2006 payment units.
Space Stations (GSOs & NGSOs)  Based on International Bureau reports and
                                actual FY 2006 payment units.
International Bearer Circuits  Based on International Bureau reports and
                                actual FY 2006 payment units.
International HF Broadcast     Based on International Bureau reports and
 Stations, International        actual FY 2006 payment units.
 Public Fixed Radio Service.
------------------------------------------------------------------------

Attachment C--Calculation of FY 2007 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.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              FY 2006      Pro-rated FY    Computed new   Rounded new FY
             Fee category                FY 2007 payment       Years          revenue      2007 revenue       FY 2007          2007         Expected FY
                                              units                          estimate      requirement *  regulatory fee  regulatory fee   2007 revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use).................             1,250              10         440,000         426,300              34              35         437,500
PLMRS (Shared use)....................            15,500              10       2,500,000       2,422,162              16              15       2,325,000
Microwave.............................             4,350              10       1,700,000       1,647,070              38              40       1,740,000
218-219 MHz (Formerly IVDS)...........                 3              10           1,650           1,599              53              55           1,650
Marine (Ship).........................             8,000              10         800,000         775,092              10              10         800,000
GMRS..................................            16,000               5         425,000         411,768               5               5         400,000
Aviation (Aircraft)...................             8,800              10         300,000         290,659               3               5         440,000
Marine (Coast)........................               360              10         120,000         116,264              32              30         108,000
Aviation (Ground).....................             1,650              10         150,000         145,330               9              10         165,000
Amateur Vanity Call Signs.............            14,700              10         177,116         171,601            1.17            1.17         171,990

[[Page 45931]]

 
AM Class A............................                68               1         217,350         210,428           3,095           3,100         210,800
AM Class B............................             1,567               1       2,619,500       2,534,141           1,617           1,625       2,546,375
AM Class C............................               937               1         921,500         890,541             950             950         890,150
AM Class D............................             1,705               1       3,095,750       2,994,982           1,757           1,750       2,983,750
FM Classes A, B1 & C3.................             3,027               1       6,519,500       6,311,615           2,085           2,075       6,281,025
FM Classes B, C, C0, C1 & C2..........             3,002               1       7,924,300       7,675,996           2,557           2,550       7,655,100
AM Construction Permits...............                65               1          37,525          26,003             400             400          26,000
FM Construction Permits \1\...........               205               1         115,000         117,898             575             575         117,875
Satellite TV..........................               125               1         141,450         137,046           1,096           1,100         137,500
Satellite TV Construction Permit......                 3               1           1,710           1,657             552             550           1,650
VHF Markets 1-10......................                43               1       2,850,100       2,765,285          64,309          64,300       2,764,900
VHF Markets 11-25.....................                61               1       2,914,275       2,827,462          46,352          46,350       2,827,350
VHF Markets 26-50.....................                77               1       2,465,625       2,392,781          31,075          31,075       2,392,775
VHF Markets 51-100....................               115               1       2,372,200       2,300,839          20,007          20,000       2,300,000
VHF Remaining Markets.................               198               1       1,045,200       1,012,657           5,114           5,125       1,014,750
VHF Construction Permits..............                 3               1          30,600          15,377           5,126           5,125          15,375
UHF Markets 1-10......................                91               1       1,846,750       1,787,645          19,644          19,650       1,788,150
UHF Markets 11-25.....................                76               1       1,528,000       1,478,819          19,458          19,450       1,478,200
UHF Markets 26-50.....................               115               1       1,284,075       1,242,489          10,804          10,800       1,242,000
UHF Markets 51-100....................               168               1       1,092,000       1,056,977           6,292           6,300       1,058,400
UHF Remaining Markets.................               183               1         331,925         321,590           1,757           1,750         320,250
UHF Construction Permits \1\..........                22               1          33,725          38,517           1,751           1,750          38,500
Broadcast Auxiliaries.................            27,000               1         240,000         232,528               9              10         270,000
LPTV/Translators/Boosters/Class A TV..             3,400               1       1,218,000       1,180,077             347             345       1,173,000
CARS Stations.........................               780               1         148,750         144,119             185             185         144,300
Cable TV Systems......................        64,500,000               1      49,770,000      48,220,399         0.74760            0.75      48,375,000
Interstate Tele-communication Service     51,000,000,000               1     140,184,000     135,819,336      0.00266312         0.00266     135,660,000
 Providers............................
CMRS Mobile Services (Cellular/Public        229,000,000               1      42,000,000      40,596,052           0.177            0.18      41,220,000
 Mobile)..............................
CMRS Messag. Services.................         7,500,000               1         520,000         600,077            0.08            0.08         600,000
BRS \2\...............................             1,300               1         485,925         425,139             327             325         422,500
LMDS..................................               410               1          90,750         134,077             327             325         133,250
International Bearer Circuits.........         7,200,000               1       7,791,000       7,548,425            1.05            1.05       7,560,000
International Public Fixed............                 1               1           1,925           1,865           1,865           1,875           1,875
Earth Stations........................             3,900               1         752,500         729,071             187             185         721,500
International HF Broadcast............                 5               1           4,100           3,972             794             795           3,975
Space Stations (Geostationary)........                86               1       9,693,975       9,392,151         109,211         109,200       9,391,200
Space Stations (Non-Geostationary)....                 6               1         721,350         698,891         116,482         116,475         698,850
    ****** Total Estimated Revenue to   ................  ..............     299,624,101     290,274,768  ..............  ..............     291,055,465
     be Collected.....................
    ****** Total Revenue Requirement..  ................  ..............     298,771,000     290,295,160  ..............  ..............     290,295,160
        Difference....................  ................  ..............         853,101        (20,392)  ..............  ..............         760,305
--------------------------------------------------------------------------------------------------------------------------------------------------------
*-0.028369018 factor applied based on the amount Congress designated for recovery through regulatory fees (Pub. L. 109-108 and 47 U.S.C. 159(a)(2)).
\1\ The AM and FM Construction Permit revenues and the VHF and 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.
\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, Report & Order
  and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, para. 6 (2004) (R&O and FNPRM).

Attachment D--FY 2007 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)..          35
Microwave (per license) (47 CFR part 101).............          40
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).........          30
General Mobile Radio Service (per license) (47 CFR               5
 part 95).............................................
Rural Radio (47 CFR part 22) (previously listed under           15
 the Land Mobile category)............................
PLMRS (Shared Use) (per license) (47 CFR part 90).....          15
Aviation (Aircraft) (per station) (47 CFR part 87)....           5
Aviation (Ground) (per license) (47 CFR part 87)......          10
Amateur Vanity Call Signs (per call sign) (47 CFR part           1.17
 97)..................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts            .18
 20, 22, 24, 27, 80 and 90)...........................
CMRS Messaging Services (per unit) (47 CFR parts 20,              .08
 22, 24 and 90).......................................
Broadband Radio Service (formerly MMDS/MDS) (per               325
 license) (47 CFR part 21)............................
Local Multipoint Distribution Service (per call sign)          325
 (47 CFR part 101)....................................
AM Radio Construction Permits.........................         400
FM Radio Construction Permits.........................         575

[[Page 45932]]

 
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10......................................      64,300
    Markets 11-25.....................................      46,350
    Markets 26-50.....................................      31,075
    Markets 51-100....................................      20,000
    Remaining Markets.................................       5,125
    Construction Permits..............................       5,125
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10......................................      19,650
    Markets 11-25.....................................      19,450
    Markets 26-50.....................................      10,800
    Markets 51-100....................................       6,300
    Remaining Markets.................................       1,750
    Construction Permits..............................       1,750
Satellite Television Stations (All Markets)...........       1,100
Construction Permits--Satellite Television Stations...         550
Low Power TV, Class A TV, TV/FM Translators & Boosters         345
 (47 CFR part 74).....................................
Broadcast Auxiliaries (47 CFR part 74)................          10
CARS (47 CFR part 78).................................         185
Cable Television Systems (per subscriber) (47 CFR part            .75
 76)..................................................
Interstate Telecommunication Service Providers (per               .00266
 revenue dollar)......................................
Earth Stations (47 CFR part 25).......................         185
Space Stations (per operational station in                 109,200
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100).................................................
Space Stations (per operational system in non-             116,475
 geostationary orbit) (47 CFR part 25)................
International Bearer Circuits (per active 64KB                   1.05
 circuit).............................................
International Public Fixed (per call sign) (47 CFR           1,875
 part 23).............................................
International (HF) Broadcast (47 CFR part 73).........         795
------------------------------------------------------------------------

FY 2007 Schedule of Regulatory Fees (Continued)

                                                          FY 2007 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      FM Classes A, B1  FM Classes B, C,
              Population served                  AM Class A        AM Class B        AM Class C        AM Class D           & C3           C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000....................................               625               475               400               475               575               725
25,001-75,000...............................             1,225               925               600               725             1,150             1,250
75,001-150,000..............................             1,825             1,150               800             1,200             1,600             2,300
150,001-500,000.............................             2,750             1,950             1,200             1,425             2,475             3,000
500,001-1,200,000...........................             3,950             2,975             2,000             2,375             3,900             4,400
1,200,001-3,000,000.........................             6,075             4,575             3,000             3,800             6,350             7,025
>3,000,000..................................             7,275             5,475             3,800             4,750             8,075             9,125
--------------------------------------------------------------------------------------------------------------------------------------------------------

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 sections 73.150 
and 73.152 of the Commission's rules.\302\ 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.\303\ 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.
---------------------------------------------------------------------------

    \302\ 47 CFR 73.150 and 73.152.
    \303\ 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

[[Page 45933]]

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.\304\ 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.
---------------------------------------------------------------------------

    \304\ 47 CFR 73.313.
---------------------------------------------------------------------------

Attachment F--FY 2006 Schedule of Regulatory Fees

------------------------------------------------------------------------
                                                             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               5
 part 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,              .08
 22, 24 and 90).......................................
Multipoint Distribution Services (MMDS/MDS) (per               275
 license sign) (47 CFR part 21).......................
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, TV/FM Translators & Boosters (47 CFR             420
 part 74).............................................
Broadcast Auxiliary (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                 111,425
 geostationary orbit) (47 CFR part 25) also includes
 Direct Broadcast Satellite Service (per operational
 station) (47 CFR part 100)...........................
Space Stations (per operational system in non-             120,225
 geostationary orbit) (47 CFR part 25)................
International Bearer Circuits (per active 64KB                   1.47
 circuit).............................................
International Public Fixed (per call sign) (47 CFR           1,925
 part 23).............................................
International (HF) Broadcast (47 CFR part 73).........         820
------------------------------------------------------------------------

FY 2006 Schedule of Regulatory Fees (Continued)

                                                         FY 2006.--Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      FM Classes A, B1  FM Classes B, C,
              Population served                  AM Class A        AM Class B        AM Class C        AM Class D           & C3           C0, 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

[[Page 45934]]

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

Attachment G

Parties Filing Comments on the Notice of Proposed Rulemaking

American Association of Paging Carriers (``AAPC'')
ARCOS-1 USA, Inc., Brasil Telecom of American, Inc., Caribbean Crossing 
Ltd., Global Crossing Ltd., Hibernia Atlantic, Pacific Crossing Limited 
and PC Landing Corp. (``Joint Comments'')
Comcast Corporation (``Comcast'')
Iowa Utilities Board (``IUB'')
National Telecommunications Cooperative Association (``NTCA'')
Nuvio Corporation (``Nuvio'')
USA Mobility, Inc. (``USA Mobility'')
Voice on the Net Coalition (``VON Coalition'')
Dave Wilson
Wireless Communications Association International, Inc. (``WCA'')

Parties Filing Reply Comments

American Cable Association (``ACA'')
Enterprise Wireless Alliance (``EWA'')
National Cable & Telecommunication Association (``NCTA'')
National Exchange Carrier Association, Inc. (``NECA''); the National 
Telecommunications Cooperative Association (``NTCA''); the Organization 
for the Promotion and Advancement of Small Telecommunications Companies 
(``OPASTCO''); and the Western Telecommunications Alliance (``WTA'') 
(``the Associations'')
Voice on the Net Coalition (``VON Coalition'')
Wireless Communications Association International, Inc. (``WCA'')

Attachment H--Rule Changes

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

PART 1--PRACTICE AND PROCEDURE

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

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


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


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

------------------------------------------------------------------------
   Exclusive use services  (per        Fee
             license)               amount\1\            Address
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz and
 220 MHz Local, Base Station &
 SMRS) (47 CFR Part 90)
    (a) New, Renew/Mod (FCC 601 &       $35.00  FCC, P.O. Box 358130,
     159).                                       Pittsburgh, PA 15251-
                                                 5130.
    (b) New, Renew/Mod                   35.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC 601                Pittsburgh, PA 15251-
     & 159).                                     5994.
    (c) Renewal Only (FCC 601 &          35.00  FCC, P.O. Box 358245,
     159).                                       Pittsburgh, PA 15251-
                                                 5245.
    (d) Renewal Only (Electronic         35.00  FCC, P.O. Box 358994,
     Filing) (FCC 601 & 159).                    Pittsburgh, PA 15251-
                                                 5994.
    220 MHz Nationwide
        (a) New, Renew/Mod (FCC          35.00  FCC, P.O. Box 358130,
         601 & 159).                             Pittsburgh, PA 15251-
                                                 5130.
        (b) New, Renew/Mod               35.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         601 & 159).                             5994.
        (c) Renewal Only (FCC 601        35.00  FCC, P.O. Box 358245,
         & 159).                                 Pittsburgh, PA 15251-
                                                 5245.
        (d) Renewal Only                 35.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         601 & 159).                             5994.
2. Microwave (47 CFR Part 101)
 (Private)
    (a) New, Renew/Mod (FCC 601 &        40.00  FCC, P.O. Box 358130,
     159).                                       Pittsburgh, PA 15251-
                                                 5130.
    (b) New, Renew/Mod                   40.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC 601                Pittsburgh, PA 15251-
     & 159).                                     5994.
    (c) Renewal Only (FCC 601 &          40.00  FCC, P.O. Box 358245,
     159).                                       Pittsburgh, PA 15251-
                                                 5245.
    (d) Renewal Only (Electronic         40.00  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                   55.00  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC 601                Pittsburgh, PA 15251-
     & 159).                                     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          15.00  FCC, P.O. Box 358130,
         601 & 159).                             Pittsburgh, PA 15251-
                                                 5130.
        (b) New, Renew/Mod               15.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         601 & 159).                             5994.
        (c) Renewal Only (FCC 601        15.00  FCC, P.O. Box 358245,
         & 159).                                 Pittsburgh, PA 15251-
                                                 5245.
        (d) Renewal Only                 15.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         601 & 159).                             5994.
    General Mobile Radio Service
        (a) New, Renew/Mod (FCC           5.00  FCC, P.O. Box 358130,
         605 & 159).                             Pittsburgh, PA 15251-
                                                 5130.
        (b) New, Renew/Mod                5.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         605 & 159).                             5994.
        (c) Renewal Only (FCC 605         5.00  FCC, P.O. Box 358245,
         & 159).                                 Pittsburgh, PA 15251-
                                                 5245.
        (d) Renewal Only                  5.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         605 & 159).                             5994.

[[Page 45935]]

 
    Rural Radio (Part 22)
        (a) New, Additional              15.00  FCC, P.O. Box 358994,
         Facility, Major Renew/                  Pittsburgh, PA 15251-
         Mod (Electronic Filing)                 5994.
         (FCC 601 & 159).
        (b) Renewal, Minor Renew/        15.00  FCC, P.O. Box 358994,
         Mod (Electronic Filing)                 Pittsburgh, PA 15251-
         (FCC 601 & 159).                        5994.
    Marine Coast
        (a) New Renewal/Mod (FCC         30.00  FCC, P.O. Box 358130,
         601 & 159).                             Pittsburgh, PA 15251-
                                                 5130.
        (b) New, Renewal/Mod             30.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         601 & 159).                             5994.
        (c) Renewal Only (FCC 601        30.00  FCC, P.O. Box 358245,
         & 159).                                 Pittsburgh, PA 15251-
                                                 5245.
        (d) Renewal Only                 30.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         601 & 159).                             5994.
    Aviation Ground
        (a) New, Renewal/Mod (FCC        10.00  FCC, P.O. Box 358130,
         601 & 159).                             Pittsburgh, PA 15251-
                                                 5130.
        (b) New, Renewal/Mod             10.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         601 & 159).                             5994.
        (c) Renewal Only (FCC 601        10.00  FCC, P.O. Box 358245,
         & 159).                                 Pittsburgh, PA 15251-
                                                 5245.
        (d) Renewal Only                 10.00  FCC, P.O. Box 358994,
         (Electronic Only) (FCC                  Pittsburgh, PA 15251-
         601 & 159).                             5994.
    Marine Ship
        (a) New, Renewal/Mod (FCC        10.00  FCC, P.O. Box 358130,
         605 & 159).                             Pittsburgh, PA 15251-
                                                 5130.
        (b) New, Renewal/Mod             10.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         605 & 159).                             5994.
        (c) Renewal Only (FCC 605        10.00  FCC, P.O. Box 358245,
         & 159).                                 Pittsburgh, PA 15251-
                                                 5245.
        (d) Renewal Only                 10.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         605 & 159).                             5994.
    Aviation Aircraft
        (a) New, Renew/Mod (FCC           5.00  FCC, P.O. Box 358130,
         605 & 159).                             Pittsburgh, PA 15251-
                                                 5130.
        (b) New, Renew/Mod                5.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         605 & 159).                             5994.
        (c) Renewal Only (FCC 605         5.00  FCC, P.O. Box 358245,
         & 159).                                 Pittsburgh, PA 15251-
                                                 5245.
        (d) Renewal Only                  5.00  FCC, P.O. Box 358994,
         (Electronic Filing) (FCC                Pittsburgh, PA 15251-
         605 & 159).                             5994.
5. Amateur Vanity Call Signs
    (a) Initial or Renew (FCC 605         1.17  FCC, P.O. Box 358130,
     & 159).                                     Pittsburgh, PA 15251-
                                                 5130.
    (b) Initial or Renew                  1.17  FCC, P.O. Box 358994,
     (Electronic Filing) (FCC 605                Pittsburgh, PA 15251-
     & 159).                                     5994.
6. CMRS Mobile Services (per            \2\.18  FCC, P.O. Box 358835,
 unit) (FCC 159).                                Pittsburgh, PA 15251-
                                                 5835.
7. CMRS Messaging Services (per         \2\.08  FCC, P.O. Box 358835,
 unit) (FCC 159).                                Pittsburgh, PA 15251-
                                                 5835.
8. Broadband Radio Service              325     FCC, Multipoint, P.O.
 (formerly MMDS and MDS).                        Box 358835, Pittsburgh,
                                                 PA 15251-5835.
9. Local Multipoint Distribution        325     FCC, Multipoint, P.O.
 Service.                                        Box 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 section 1.1102 of this
  chapter.
\2\ These are standard fees that are to be paid in accordance with Sec.
   1.1157(b) of this chapter.


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.

------------------------------------------------------------------------
                                          Fee amount        Address
------------------------------------------------------------------------
Radio [AM and FM] (47 CFR part 73)
    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......        1,825  ..................
        150,001-500,000 population.....        2,750
        500,001-1,200,000 population...        3,950  ..................
        1,200,001-3,000,000 population.        6,075  ..................
        >3,000,000 population..........        7,275  ..................
    2. AM Class B:
        <=25,000 population............          475  ..................
        25,001-75,000 population.......          925  ..................
        75,001-150,000 population......        1,150  ..................
        150,001-500,000 population.....        1,950  ..................
        500,001-1,200,000 population...        2,975  ..................
        1,200,001-3,000,000 population.        4,575  ..................
        >3,000,000 population..........        5,475  ..................
    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  ..................

[[Page 45936]]

 
        1,200,001-3,000,000 population.        3,000  ..................
        >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 population.        3,800  ..................
        >3,000,000 population..........        4,750  ..................
    5. AM Construction Permit..........          400  ..................
    6. FM Classes A, B1 and C3:
        <=25,000 population............          575  ..................
        25,001-75,000 population.......        1,150  ..................
        75,001-150,000 population......        1,600  ..................
        150,001-500,000 population.....        2,475  ..................
        500,001-1,200,000 population...        3,900  ..................
        1,200,001-3,000,000 population.        6,350  ..................
        >3,000,000 population..........        8,075  ..................
    7. FM Classes B, C, C0, C1 and C2:
        <=25,000 population............          725  ..................
        25,001-75,000 population.......        1,250  ..................
        75,001-150,000 population......        2,300  ..................
        150,001-500,000 population.....        3,000  ..................
        500,001-1,200,000 population...        4,400  ..................
        1,200,001-3,000,000 population.        7,025  ..................
        >3,000,000 population..........        9,125  ..................
    8. FM Construction Permits.........          575  ..................
TV (47 CFR part 73) VHF Commercial:
    1. Markets 1 thru 10...............       64,300  FCC, TV Branch,
                                                       P.O. Box 358835,
                                                       Pittsburgh, PA
                                                       15251-5835.
    2. Markets 11 thru 25..............       46,350  ..................
    3. Markets 26 thru 50..............       31,075  ..................
    4. Markets 51 thru 100.............       20,000  ..................
    5. Remaining Markets...............        5,125  ..................
    6. Construction Permits............        5,125  ..................
UHF Commercial:
    1. Markets 1 thru 10...............       19,650  FCC, UHF
                                                       Commercial, P.O.
                                                       Box 358835,
                                                       Pittsburgh, PA
                                                       15251-5835.
    2. Markets 11 thru 25..............       19,450  ..................
    3. Markets 26 thru 50..............       10,800  ..................
    4. Markets 51 thru 100.............        6,300  ..................
    5. Remaining Markets...............        1,750  ..................
    6. Construction Permits............        1,750  ..................
Satellite UHF/VHF Commercial:
    1. All Markets.....................        1,100  FCC Satellite TV,
                                                       P.O. Box 358835,
                                                       Pittsburgh, PA
                                                       15251-5835.
    2. Construction Permits............          550  ..................
Low Power TV, Class A TV, TV/FM                  345  FCC, Low Power,
 Translator, & TV/FM Booster (47 CFR                   P.O. Box 358835,
 part 74).                                             Pittsburgh, PA
                                                       15251-5835.
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       $40.00  FCC, P.O. Box 358994,
     Fixed) (Electronic Filing)                  Pittsburgh, PA 15251-
     (FCC Form 601 & 159).                       5994.
Carriers:
    1. Interstate Telephone             .00266  FCC, Carriers, P.O. 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.

[[Page 45937]]



------------------------------------------------------------------------
                                    Fee amount           Address
------------------------------------------------------------------------
1. Cable Television Relay Service         $185  FCC, Cable, P.O. Box
                                                 358835, Pittsburgh, PA
                                                 15251-5835.
2. Cable TV System (per                    .75  ........................
 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)                 $795  FCC, International, P.O.
     Broadcast.                                  Box 358835, Pittsburgh,
                                                 PA 15251-5835.
    2. International Public Fixed        1,875  FCC, International, P.O.
                                                 Box 358835, Pittsburgh,
                                                 PA 15251-5835.
Space Stations (Geostationary          109,200  FCC, Space Stations,
 Orbit).                                         P.O. Box 358835,
                                                 Pittsburgh, PA 15251-
                                                 5835.
Space Stations (Non-Geostationary      116,475  FCC, Space Stations,
 Orbit).                                         P.O. Box 358835,
                                                 Pittsburgh, PA 15251-
                                                 5835.
Earth Stations:
    Transmit/Receive & Transmit            185  FCC, Earth Station, P.O.
     Only (per authorization or                  Box 358835, Pittsburgh,
     registration).                              PA 15251-5835.
Carriers:
    International Bearer Circuits         1.05  FCC, International, P.O.
     (per active 64KB circuit or                 Box 358835, Pittsburgh,
     equivalent).                                PA 15251-5835.
------------------------------------------------------------------------


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

Statement of Commissioner Michael J. Copps, Approving in Part, 
Concurring in Part

Re: Assessment and Collection of Regulatory Fees for Fiscal Year 2007, 
Report and Order and Further Notice of Proposed Rulemaking in MD Docket 
07-81

    I concur in today's item to emphasize my long-held and oft-repeated 
belief that the Commission should consider opening a formal rulemaking 
to address the adjustment of regulatory fees pursuant 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. In the 
absence of a separate rulemaking, I would have preferred to address the 
submarine cable issue in the Further Notice adopted herein. I hope that 
we act on the pending petition for rulemaking quickly.

Concurring Statement of Commissioner Jonathan Adelstein

Re: Assessment and Collection of Regulatory Fees for Fiscal Year 2007, 
Report and Order and Further Notice of Proposed Rulemaking, MD Docket 
No. 07-81 (Aug. 2, 2007)

    As in years past, I must concur to our Regulatory Fee Order because 
I remain troubled with the Commission's inability and reluctance to 
consider changes that occur from time to time in the costs of 
regulatory fees for individual services. It is particularly 
disappointing that the Commission misses an opportunity to address in 
this Further Notice the regulatory fees paid by submarine cable 
operators, who have argued that the current fee structure results in 
certain operators paying fees that can approach the wholesale prices 
they receive from their consumers. Given that these operators have 
pending a petition for rulemaking before the Commission, it is high 
time for the Commission to seek comment on these issues and is 
regrettable that we do not do so here. I encourage the Commission to 
continue to improve its regulatory fee assessment processes so that in 
the future we are more able to make adjustments as appropriate.

[FR Doc. E7-15607 Filed 8-15-07; 8:45 am]
BILLING CODE 6712-01-P