[Federal Register Volume 73, Number 166 (Tuesday, August 26, 2008)]
[Proposed Rules]
[Pages 50285-50296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19431]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket No. 08-65; FCC 08-182]
Assessment and Collection of Regulatory Fees for Fiscal Year 2008
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
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SUMMARY: In this document, we seek comment on changes to the regulatory
fee schedule and methodology.
DATES: Comments are due September 25, 2008, and reply comments are due
October 27, 2008.
ADDRESSES: You may submit comments, identified by MD Docket No. 08-65,
by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web Site: http://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
E-mail: [email protected]. Include MD Docket No. 08-65 in the
subject line of the message.
Mail: Commercial overnight mail (other than U.S. Postal
Service Express Mail, and Priority Mail, must be sent to 9300 East
Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th
Street, SW., Washington, DC 20554.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: [email protected] or phone: (202) 418-
0530 or TTY (202) 418-0432.
FOR FURTHER INFORMATION CONTACT: CORES Helpdesk at (877) 480-3201,
option 4 or [email protected].
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's
Further Notice of Proposed Rulemaking, MD Docket No. 08-65, FCC 08-182
adopted on August 1, 2008 and released on August 8, 2008. The full text
of this document is available is available for inspection and copying
during normal business hours in the FCC Reference Center (Room CY-
A257), 445 12th Street, SW., Washington, DC 20554. The complete text of
this document also may be purchased from the Commission's copy
contractor, Best Copy and Printing, Inc., 445 12th Street, SW., Room
CY-B402, Washington, DC 20554. The full text may also be downloaded at
http://www.fcc.gov.
Pursuant to sections 1.1206(b), 1.1202 and 1.1203 of the
Commission's rules, CFR 1.1206(b), 1.1202, 1.1203, this is as a
``permit-but-disclose'' proceeding. Ex parte presentations are
permissible if disclosed in accordance with Commission rules, except
during the Sunshine Agenda period when presentations, ex parte or
otherwise, are generally prohibited. Persons making oral ex parte
presentations are reminded that a memorandum summarizing a presentation
must contain a summary of the substance of the presentation and not
merely a listing of the subjects discussed. More than a one- or two-
sentence description of the views and arguments presented is generally
required.\1\ Additional rules pertaining to oral and written
presentations are set forth in section 1.1206(b).
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\1\ See 47 CFR 1.1206(b)(2).
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Pursuant to sections 1.415 and 1.419 of the Commission's rules, 47
CFR 1.415, 1.419, interested parties may file comments on or before the
dates indicated on the first page of this document. Comments may be
filed using: (1) The Commission's Electronic Comment Filing System
(``ECFS''), (2) the Federal Government's eRulemaking Portal, or (3)
procedures for filing paper copies. See Electronic Filing of Documents
in Rulemaking Proceedings, 63 FR 24121 (1998), 13 FCC Rcd 11322 (1998).
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs
or the Federal eRulemaking Portal: http://www.regulations.gov. Filers
should follow the instructions provided on the Web site for submitting
comments. For ECFS filers, if multiple docket or rulemaking numbers
appear in the caption of this proceeding, filers must transmit one
electronic copy of the comments for each docket or rulemaking number
referenced in the caption. In completing the transmittal screen, filers
should include their full name, U.S. Postal Service mailing address,
and the applicable docket or rulemaking number. Parties may also submit
an electronic comment by Internet e-mail. To get filing instructions,
filers should send an e-mail to [email protected], and include the following
words in the body of the message, ``get form.'' A sample form and
directions will be sent in response.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. If more than one
docket or rulemaking number appears in the caption of this proceeding,
filers must submit two additional copies for each additional docket or
rulemaking number. Filings can be sent by hand or messenger delivery,
by commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail (although we continue to experience delays in
receiving U.S. Postal Service mail). All filings must be addressed to
the Commission's Secretary, Office of the Secretary, Federal
Communications Commission.
The Commission's contractor will receive hand-delivered or
messenger-delivered paper filings for the Commission's Secretary at 236
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be
held together with rubber bands or fasteners. Any envelopes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
[[Page 50286]]
U.S. Postal Service first-class, Express, and Priority
mail should be addressed to 445 12th Street, SW., Washington, DC 20554.
People with Disabilities: To request information in
accessible formats for people with disabilities (Braille, large print,
electronic files, audio format), send an e-mail to [email protected] or
call the FCC's Consumer and Governmental Affairs Bureau at (202) 418-
0530 (voice), (202) 418-0432 (TTY).
Table of Contents
Heading Paragraph No.
I. FURTHER NOTICE OF PROPOSED RULEMAKING................ 1
A. Background....................................... 1
B. Discussion....................................... 7
1. Interstate Telecommunications Service 14
Providers (``ITSPs'')..........................
2. International and Interstate Toll Services... 18
3. Regulatory Fee Obligations for Digital 20
Broadcasters...................................
4. Per-Subscriber Fees for Video Services in 23
Addition to Cable Television Operators.........
a. Internet Protocol TV (``IPTV'').......... 24
b. Direct Broadcast Service (``DBS'') 26
Providers..................................
5. Cable Television Services--Calculation of 27
Subscriber Numbers.............................
6. Private Land Mobile Radio Services 29
(``PLMRS'')....................................
7. Other Telecommunications Services............ 30
II. ADMINISTRATIVE AND OPERATIONAL ISSUES............... 35
A. Use of Fee Filer................................. 36
B. Proposals for Notification and Collection of 39
Regulatory Fees....................................
1. Interstate Telecommunications Service 42
Providers......................................
2. Satellite Space Station Licensees............ 43
3. Media Services Licensees..................... 44
4. Commercial Mobile Radio Service Cellular and 45
Mobile Services Assessments....................
5. Cable Television Subscribers................. 48
6. Streamlined Regulatory Fee Payment Process 49
for CMRS Cellular and Mobile Providers.........
III. PROCEDURAL MATTERS................................. 50
A. Payment of Regulatory Fees....................... 50
1. De Minimis Fee Payment Liability............. 50
2. Standard Fee Calculations and Payment Dates.. 51
a. Media Services........................... 52
b. Wireline (Common Carrier) Services....... 53
c. Wireless Services........................ 54
d. Multichannel Video Programming 56
Distributor Services (cable television
operators and CARS licensees)..............
e. International Services................... 57
B. Enforcement...................................... 58
C. Final Paperwork Reduction Act of 1995 Analysis... 61
D. Congressional Review Act Analysis................ 62
E. Ex Parte Rules................................... 63
F. Filing Requirements.............................. 64
IV. ORDERING CLAUSES.................................... 69
APPENDIX Initial Regulatory Flexibility Analysis........
I. Further Notice of Proposed Rulemaking
A. Background
1. Each year Congress requires the Commission to collect regulatory
fees ``to recover the costs of * * * enforcement activities, policy and
rulemaking activities, user information services, and international
activities.'' \2\ The Act states that fees are to ``be derived by
determining the full-time equivalent number of employees performing''
these activities ``adjusted to take into account factors that are
reasonably related to the benefits provided to the payer of the fee by
the Commission's activities * * *.'' \3\ Regulatory fees recover:
direct costs, such as salary and expenses; indirect costs, such as
overhead functions; and support costs, such as rent, utilities, or
equipment.\4\ Congress sets the amount the Commission collects each
year in the annual appropriations law.\5\
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\2\ 47 U.S.C. 159(a).
\3\ 47 U.S.C. 159(b)(1)(A).
\4\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 1997, MD Docket No. 96-186, Report and Order, 12 FCC Rcd 17161,
17170-71, para. 23 (1997) (``FY 1997 Report and Order''). Regulatory
fees also recover costs attributable to regulatees that Congress has
exempted from the fees as well as costs attributable to licensees
granted fee waivers. FY 1997 Report and Order, 12 FCC Rcd at 17170,
para. 22.
\5\ See, e.g., Consolidated Appropriations Act, 2008, Public Law
110-161.
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2. Section 9 requires the Commission to make certain changes to the
regulatory fee schedule ``if the Commission determines that the
schedule requires amendment to comply with the requirements'' of
section 9(b)(1)(A), cited above. The Commission must add, delete, or
reclassify services in the fee schedule to reflect additions,
deletions, or changes in the nature of its services ``as a consequence
of Commission rulemaking proceedings or changes in law.'' These
``permitted amendments'' require Congressional notification \6\ and
resulting changes in fees are not subject to judicial review. \7\
Neither of these provisions requires amendment of the fee schedule to
mirror all changes in regulatory costs.\8\
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\6\ 47 U.S.C. 159(b)(4)(B).
\7\ 47 U.S.C. 159(b)(3).
\8\ FY 2004 Report and Order, 19 FCC Rcd at 11666, para. 9.
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3. To calculate regulatory fees, the Commission allocates the total
collection target, as mandated by Congress each year, to each
regulatory fee category. Each regulatee within a fee category must pay
its proportionate share based on some objective measure, e.g. ,
revenues or subscribers. The first step, allocating fees to fee
categories, is based on the Commission's 1994 calculation of full time
employees (``FTEs'') devoted to each regulatory fee category. We
recognize that the communications industry has changed
[[Page 50287]]
considerably since we adopted our regulatory fee schedule in 1994.\9\
Services such as wireless, broadband, and voice over Internet protocol
(``VoIP'') have exploded in growth in recent years. The Commission
itself has reorganized several times since 1994 to reflect industry
changes.
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\9\ See Implementation of Section 9 of the Communications Act,
Report and Order, 9 FCC Rcd 5333 (1994).
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4. As the following charts show, regulatory fee burdens have
shifted significantly since 1995:
[GRAPHIC] [TIFF OMITTED] TP26AU08.023
Source: Assessment and Collection of Regulatory Fees for Fiscal
Year 1995, Report and Order, 60 FR 34004, June 29, 1995. (FY 2005 was
the first year in which payment units were included in the Report and
Order.)
[GRAPHIC] [TIFF OMITTED] TP26AU08.024
Source: Percentages and dollar amounts based on preliminary
calculations while drafting the Assessment and Collection of Regulatory
Fees for Fiscal Year 2008, Report and Order and Further Notice of
Proposed Rulemaking.
5. Historically, and in this year's proceeding, parties have
challenged the Commission's regulatory fees for certain categories of
services by claiming that the fees are not appropriately based on the
Commission's regulatory costs.\10\ Regulatory fees cannot, however, be
precisely calibrated, on a service-by-service basis, to the actual
costs of the Commission's regulatory activities for that service.\11\
The initial Schedule of Regulatory Fees that Congress enacted in
section 9(g) reflects this approach. Two specific examples are
satellite regulatory fees and radio and television regulatory fees.\12\
Congress required that satellite fees be based on the number of
satellites the regulatee has in operation; however, the number of
satellites may or may not relate to the actual costs in terms of FTEs
of regulating that particular entity.\13\ Similarly, radio and
television fees are based on the size of the markets served, which also
may
[[Page 50288]]
have no relationship to the Commission's costs.\14\
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\10\ See, e.g., Assessment and Collection of Regulatory Fees for
Fiscal Year 2004, MD Docket No. 04-146, Report and Order, 19 FCC Rcd
11662, 11665-67, para. 5-11 (2004) (``FY 2004 Report and Order'').
\11\ See, e.g., FY 1997 Report and Order, 12 FCC Rcd at 17171-
72, para. 27.
\12\ FY 2004 Report and Order, 19 FCC Rcd at 11666, para. 8.
\13\ Id.
\14\ Id.
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6. Notwithstanding that regulatory fees cannot be precisely
calibrated to our actual costs of our regulatory activities, there may
be several areas in which we can revise and improve our regulatory fee
process to better reflect the industry today. Industry, regulatory, and
Commission organizational changes may mean that the FTE estimates the
Commission has used since 1994 to allocate fees to industry segments
require updating. In addition, certain services may be excluded from
the regulatory fee process because those services were not offered when
the fee schedule was adopted and other services may be paying a
disproportionate share of regulatory fees because in the past those
services had a larger share of the communications market. We adopt this
FNPRM to explore more equitable and reasonable approaches to assessing
regulatory fees.
B. Discussion
7. The regulatory fees assessed each year are to recover a fixed
amount set by Congress. Thus, increasing the regulatory fee for one
category will reduce the fee for the remaining categories and vice
versa. We seek comment on ways to improve our regulatory fee process
regarding any and all categories of service. In light of the industry
changes since 1994, how can we better determine the regulatory fees for
services in a way that is aligned with the Commission's regulatory
activities? We seek comment on whether we should continue to collect
our regulatory fees based on the allocations noted above for FY 2008,
or if we should revert to a percentage allocation closer to our FY 1995
regulatory fee allocation, or if we should adopt a different allocation
based on the communications marketplace that exists today. We also seek
comment on possible methodologies for re-calculating the regulatory fee
allocation.
8. Commenters should discuss the fee categories that bear a too
heavy regulatory fee burden. For example, some services, such as paging
and PLMRS, have declining subscriber bases. Conversely, we seek comment
on whether there are categories that should pay higher regulatory fees.
In addition, are there categories that should be added, deleted, or
reclassified? Would such changes result in a system that is more (or
less) equitable and reasonable?
9. We also seek comment on whether we should review the entire
regulatory fee process, apart from the annual regulatory fee orders, on
a periodic basis. Should the Commission undertake a comprehensive
analysis of its resource allocations as it did in 1994? Should the
Commission allocate regulatory fees to each category based on the
proportionate use of full time equivalent (``FTE'') within the
Commission? We seek comment on whether we should examine FTE allocation
by industry segment or some other basis, such as strategic goal.\15\
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\15\ See Federal Communications Commission Fiscal Year 2007
Performance and Accountability Report at 31-90 (http://www.fcc.gov/Reports/ar2007.pdf).
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10. Currently, the Commission uses different bases to allocate
regulatory fees to entities in different regulatory fee categories. For
example, fees for wireless companies are based on subscribers and
wireline companies are based on revenues. Should the Commission move to
harmonize these bases? Would it be more equitable to allocate fees on a
single basis across all regulatory fee categories? Commenters should
address the incentives or disincentives of using a particular basis for
allocation. For example, do wireless companies have less incentive to
sign up subscribers because each new subscriber will increase their
regulatory fees?
11. As we discuss below, there are various services or entities
that may not be paying their share of regulatory fees. Including more
services would lessen the regulatory fee burden on the remaining
regulates. We seek comment on whether, and if so how, to include
additional services. Increasing compliance with our rules also would
lessen the regulatory fee burden on the remaining regulatees. We seek
comment on ways to improve compliance with our rules. In addition, we
seek comment on whether we should adopt additional oversight measures,
such as an audit regime to ascertain that payments are in accordance
with our rules.
12. We seek comment on whether we should modify our administration
of regulatory fees, such as our collection processes, as well as the
forms that we use for regulatory fee payors. We seek comment on whether
we should modify our Form 159. Should we use a different procedure for
billing and prebilling? Should our regulatory fee procedures be
combined with other filing and reporting requirements? We seek comment
on whether we should adopt additional performance metrics or
measurements pertaining to regulatory fees. Commenters should discuss
whether we should adopt additional performance measurements and publish
this information regarding, for example, timeliness of payment. We also
seek comment on whether there are certain categories of licensees who
should qualify for reduced regulatory fees or be exempt entirely.
13. We also invite comment on several specific regulatory fee
issues discussed below.
1. Interstate Telecommunications Service Providers (``ITSPs'')
14. ITSPs generally identify themselves as interexchange carriers,
incumbent local exchange carriers, toll resellers, or some other
provider of interexchange service on the FCC Form 499-A. The FCC Form
499-A is filed each year on April 1 with the interstate revenues from
the previous year; the ITSP regulatory fee is based on billed
interstate and international end-user revenues.\16\
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\16\ This is explained in our fact sheet, available at http://www.fcc.gov/fees/regfees.html.
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15. In FY 1995, the ITSP fee rate amounted to a fee factor of
.00088 per revenue dollar, representing approximately 40 percent of the
revenues to be collected in FY 1995.\17\ Carriers were required in FY
1995 to multiply their adjusted gross revenues (gross revenue reduced
by the total amount of payments to underlying common carriers for
telecommunications facilities or services) by 0.00088 to determine the
appropriate regulatory fee. In the Commission's FY 1997 regulatory fee
proceeding, the Commission calculated that regulation of ITSPs \18\
accounted for approximately 36 percent of all Commission costs.\19\
Since FY 1995, the ITSP fee factor rate has increased from .00088 per
revenue dollar to .00266 in FY 2007.\20\
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\17\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 1995, Report and Order, 60 FR 34004 at 34025 (Table 4) (June
29, 1995) (``1995'') (``FY 1995 Report and Order'').
\18\ ITSPs generally identify themselves as interexchange
carriers, incumbent local exchange carriers, toll resellers, or some
other provider of interexchange service on the FCC Form 499-A which
is filed each year on April 1 with the interstate revenues from the
previous year; the ITSP regulatory fee is based on billed interstate
and international end-user revenues.
\19\ See FY 1997 Report and Order, 12 FCC Rcd at 17176, para.
39.
\20\ Id., 12 FCC Rcd at 17246.
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16. ITTA, an association of mid-size local exchange carriers, filed
comments to the FY 2008 NPRM, contending that from 1999 to 2008 the
Commission's overall budget has increased by 81 percent yet the
percentage of ITSP revenues used to support Commission activities has
nearly tripled.\21\ ITTA contends that regulatory fees for
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wireless carriers have decreased and the disparity in regulatory fee
treatment between wireline and wireless services continues to
widen.\22\ ITTA recommends that the Commission extend the process by
which it added interconnected Voice over Internet Protocol (``VoIP'')
providers to the ITSP category and also include wireless providers in
the ITSP category.\23\ We seek comment on this recommendation.
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\21\ ITTA Reply Comments at 1-2.
\22\ ITTA Reply Comments at 2.
\23\ ITTA Reply Comments at 4-5.
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17. Relative to other services that pay regulatory fees, we
recognize that the ITSP market has changed since the Commission
calculated the cost of ITSP regulation in FY 1997. We agree that it is
appropriate to review our methodology for assessing regulatory fees on
ITSPs. We seek comment on whether ITSPs current share of regulatory
fees, which has not been revised significantly since 1997, is
appropriate. Commenters should discuss the ITSP market and how it has
changed since 1997 relative to the other services that pay regulatory
fees such as wireless and broadcast services. Commenters suggesting a
change in the proportionate share for ITSPs should propose a
methodology. For example, would it be more appropriate to return to the
original Schedule of Regulatory Fees and assess fees per 1,000 access
lines? We note that we have experienced significant success and
accuracy with a number-based approach for CMRS. Would number of access
lines be most appropriate?
2. International and Interstate Toll Services
18. International and interstate toll calls can originate from
either a wireless or a landline telephone; if such calls are made from
a wireless telephone they are considered wireless revenue and not
interstate or international revenue for regulatory fee purposes.
Commercial mobile radio services (``CMRS'') regulatory fees are
determined on a per unit basis rather than on a revenue basis. For FY
1995, the CMRS regulatory fee was $0.15 per unit; for FY 2007, the CMRS
regulatory fee was $0.18 per unit. Thus, international and interstate
toll calls made on a wireless telephone, even if billed separately to
the customer as international or interstate toll calls, are not paid on
a revenue basis for CMRS regulatory fee purposes, but on a subscriber
basis. Whereas, international and interstate toll calls made on a
landline telephone are considered international and interstate revenue
for ITSP regulatory fee purposes. We seek comment on whether this
disparity is equitable.
19. Specifically, we seek comment on whether we should include
interstate and international toll calls made from wireless handsets as
international and interstate revenue for regulatory fee purposes.
Commenters should also discuss whether, for example, a wireless
international call to Canada or Mexico, even though the call would be
carried for the most part on the wireline network, should be considered
wireless revenue and feeable for CMRS regulatory fee purposes. To the
extent that wireless carriers bill their customers a separate charge
for the international call (apart from minutes), should this be
considered a call subject to regulatory fees regardless of whether the
call originated from a landline or a wireless handset? Commenters
should discuss why including (or excluding) revenues from interstate
and international calls is reasonable. Commenters should also address
the effect on CMRS and ITSP regulatory fees if wireless revenues from
interstate and international toll calls become subject to regulatory
fees. We seek comment on this proposal.
3. Regulatory Fee Obligations for Digital Broadcasters
20. After February 17, 2009, full-power television broadcast
stations must transmit only in digital signals and may no longer
transmit analog signals.\24\ Digital television (``DTV'') licensees are
subject to section 8 application fees but our current schedule of
regulatory fees does not include a specific service category for
digital broadcasters.\25\ Licensees in the broadcast industry pay
regulatory fees based on their analog facilities. For licensees that
broadcast in both the analog and digital formats, the only regulatory
fee obligation at present is for their analog facility. A licensee that
has fully transitioned to digital broadcasting and has surrendered its
analog spectrum currently has no regulatory fee obligation.
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\24\ 47 U.S.C. 309(j)(14) and 337(e).
\25\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2003, MD Docket No. 03-83, Report and Order, 18 FCC Rcd 15985,
15993, para. 25 (2003) (``FY 2003 Report and Order'').
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21. In our FY 2005 Report and Order we stated that we had sought
comment on whether to establish a regulatory fee category for digital
broadcasters but received no comments on the issue and therefore we did
not establish regulatory fee obligations for digital broadcasters.\26\
At that time we recognized the Commission's initiatives to transition
analog broadcasters to digital spectrum and that we should address
these issues from a regulatory fee perspective. We seek comment on
whether we should now establish a specific regulatory fee service
category for digital broadcasters.
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\26\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2005, MD Docket No. 05-59, Report and Order and Order on
Reconsideration, 20 FCC Rcd 12259, 12266-67, para. 23 (2005) (``FY
2005 Report and Order'').
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22. Our rules do not state that regulatory fees are required for
analog licenses only,\27\ but we have consistently assessed regulatory
fees on analog licenses only.\28\ We seek comment on whether we should
clarify that regulatory fees are required for analog and digital
broadcasters, based on their markets. We seek comment on whether a rule
change is necessary under these circumstances. We do not intend to
assess regulatory fees for both digital and analog licenses from a
licensee in the process of transitioning from analog to digital. Our
goal is to efficiently and seamlessly account for the collection of fee
revenue from digital broadcasters without harming early transitioners
to digital spectrum or late transitioners from analog spectrum. We seek
comment on ways to achieve this goal.
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\27\ 47 CFR 1.1153, ``Schedule of annual regulatory fees and
filing locations for mass media services'' provides the fee amounts
due for television stations based on the market where the station is
broadcast.
\28\ The table in section 1.1153 of our rules does, however,
refer to ``UHF'' and ``VHF''.
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4. Per-Subscriber Fees for Video Services in Addition to Cable
Television Operators
23. We seek comment on whether service providers other than cable
operators, such as incumbent local exchange carriers (ILEC) providing
video service, should also pay regulatory fees on a per-subscriber
basis or otherwise.\29\ For example, should ILECs as well as cable
providers pay a per-subscriber regulatory fee because ILECs are
providing a service similar to cable service? Presently, ILECs that
provide video service are not subject to regulatory fees for their
video service, unless they are classified as a cable provider. We seek
comment on this proposal.
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\29\ See ``FCC Adopts 13th Annual Report to Congress on Video
Competition and Notice of Inquiry for the 14th Annual Report,'' MB
Docket No. 07-269, Press Release, Nov. 27, 2007.
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a. Internet Protocol TV (``IPTV'')
24. From the customer's perspective, there is likely not much
difference between IPTV and other video services, such as cable
service. The IPTV service could be offered to the customer bundled with
the customer's Internet
[[Page 50290]]
and landline telephone service.\30\ We seek comment on whether this
video service should be subject to regulatory fees, and if so, should
the IPTV provider count this service for regulatory fee purposes in the
same manner as cable services, which is on a subscriber basis? Also, we
seek comment on the likely outcome of taking no regulatory fee action
for IPTV. Commenters should discuss the impact on cable services and
the equities of treating similar services differently for regulatory
fee purposes if no regulatory fees are imposed.
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\30\ According to AT&T, ``[t]he AT&T U-verse portfolio of IP-
based services integrates digital video, AT&T Yahoo! High Speed
Internet U-verse Enabled, and in the future, voice over IP
services.'' See http://www.att.com/gen/press-room?pid=5838.
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25. We also note that any carrier offering this service would pay
regulatory fees for the interstate telecommunications service that may
be offered together with the IPTV service. We tentatively conclude that
in such a situation, the carrier should pay regulatory fees for the
ITSP service exclusive of the IPTV service, i.e., the IPTV revenues
should not be combined into the ITSP revenue-based regulatory fee. We
seek comment on this tentative conclusion. Commenters should discuss
the ease or difficulty of separating the ITSP revenues from the IPTV
revenues.
b. Direct Broadcast Service (``DBS'') Providers
26. Currently cable service providers pay approximately $0.75 per
subscriber in regulatory fees; DBS providers do not pay a per-
subscriber fee. Previously, the Commission declined to adopt the same
per-subscriber fee for DBS.\31\ We seek comment on whether we should
impose the same per subscriber fee on DBS that cable providers pay, or
continue to assess a space station regulatory fee for the DBS industry
and a subscriber-based regulatory fee structure for the cable industry.
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\31\ FY 2005 Report and Order, 20 FCC Rcd at 12264, para. 10-11.
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5. Cable Television Services--Calculation of Subscriber Numbers
27. In FY 1995, when the Commission assessed payments of $0.49 per
cable television subscriber, the Commission explained how cable service
providers should calculate their number of subscribers: \32\
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\32\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 1995, MD Docket No. 95-3, Report and Order, 10 FCC Rcd 13512,
13579, Appendix H, para. 28 (1995).
Cable Systems should determine their subscriber numbers by
calculating the number of single family dwellings, the number of
individual households in multiple dwelling units, e.g., apartments,
condominiums, mobile home parks, etc., paying at the basic
subscriber rate, the number of bulk rate customers and the number of
courtesy or fee customers. In order to determine the number of bulk
rate subscribers, a system should divide its bulk rate charge by the
annual subscription rate for individual households.\33\
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\33\ Id.
28. Cable service providers are still required to pay regulatory
fees on a per subscriber basis.\34\ We recognize that it may be
difficult to identify the number of subscribers that reside in multiple
dwelling units (``MDUs'') (e.g., condominiums, apartment buildings,
university dormitories) when residents do not contract directly with a
cable service provider. We seek comment on whether the ``bulk rate''
calculation described above should be modified to more accurately
reflect the number of subscribers in the MDU. If the ``bulk rate''
calculation does need to be revised, commenters should recommend a more
accurate way to calculate the number of subscribers in a MDU. We note
that if some cable operators are undercounting their subscribers, the
remaining cable operators are paying more. Commenters should discuss
whether the ``bulk rate'' charge is consistent with the requirement
that cable service providers pay regulatory fees on the number of
subscribers,\35\ and if not, commenters should discuss why it is
important for ``bulk rate'' counts to remain separate from subscriber
counts. We seek comment on this proposal.
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\34\ 47 CFR 1.1155.
\35\ We recognize that there may be other methods to determine
the number of subscribers in an MDU, such as counting the number of
set top boxes or the premium channels ordered, that may be more
accurate than the ``bulk rate'' calculation.
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6. Private Land Mobile Radio Services (``PLMRS'')
29. PLMRS, which includes both Exclusive and Shared Services, is
contending with a declining unit base and an ever increasing regulatory
fee obligation. In its FY 2003 Report and Order, the Commission decided
to freeze the Commercial Mobile Radio Service (CMRS) Messaging fee rate
at the FY 2002 level.\1\ The Commission argued in FY 2003 that because
the decline in the CMRS Messaging industry was a unique circumstance,
and it was not a temporary phenomenon, it was appropriate to provide
such relief. However, the PLMRS industry may not be the only industry
that is facing a permanent declining unit base. As a result, it may be
necessary for the Commission to consider guidelines for assessing
regulatory fees on such industries. For example, what would constitute
a declining industry, and under what basis should the Commission
provide regulatory fee relief? Should the Commission propose to provide
regulatory fee relief in any and all circumstances in which an industry
is in decline? We seek comment on this proposal.
7. Other Telecommunications Services
30. We seek comment on whether to add, delete, or reclassify
services. We seek comment on adding other services that were not
included in our regulatory fee schedule initially that should be
included now. For example, should we should we assess regulatory fees
on Wi-Fi service providers? Are there other services available today
that should share the regulatory fee burden and thus lessen the burden
on the more established services? If so, how should we assess the
regulatory fees on these services? We also seek comment on whether
there are fee categories that should be eliminated.
31. International Fixed Public Radio.\36\ There is only one
licensee in this category and we do not expect any additional licensees
or applications. We propose to eliminate this category from our
schedule of regulatory fees in order to reduce the administrative
burden on the Commission in assessing this fee category. We seek
comment on this proposal.
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\36\ See 47 CFR Part 23.
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32. International High Frequency Broadcast Stations.\37\ There are
only 25 licensed stations in this category. Most of these licensees are
tax-exempt organizations that are exempt from payment of regulatory
fees. We propose to eliminate this category from our schedule of
regulatory fees in order to reduce the administrative burden on the
Commission in assessing this fee category. We seek comment on this
proposal.
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\37\ See 47 CFR Part 73, Subpart F.
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33. General Mobile Radio Service (``GMRS''). GMRS is a two-way
radio service licensed to individuals.\38\ Prospective licensees pay a
$50 license application fee for a five-year license term as well as a
$25 regulatory fee. Such costs may be larger than the price of the GMRS
device. In addition, other individual radio devices, such as the Family
Radio Service,\39\ do not pay such
[[Page 50291]]
fees. These issues may contribute to the low rate of compliance with
our licensing requirements for GMRS. We therefore propose to eliminate
the regulatory fees for GMRS devices. The application fee would
continue to apply for this service. We seek comment on this proposal.
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\38\ In 1988, the Commission amended the GMRS rules to provide
flexibility to the individual user and limit eligibility for new
GMRS licenses to individuals. See Amendment of Subparts A and E of
Part 95 to Improve the General Mobile Radio Service ``GMRS''),
Report and Order, PR Docket No. 87-265, 3 FCC Rcd 6554, 6554, para.
3 (1988).
\39\ In 1996, the Commission established the Family Radio
Service (``FRS'') as a very short range, two-way voice personal
radio service that provides an affordable and convenient means of
communications among small groups of persons, including families,
with minimal regulation. See Amendment of Part 95 of the
Commission's Rules to Establish a Very Short Distance Two-way Voice
Radio Service, Report and Order, WT Docket No. 95-102, 11 FCC Rcd
12977, 12977, para. 2, 12983, para. 17, 12984, para. 19 (1996). The
FRS shares seven frequencies in the 462 MHz band with the GMRS and
has seven channels that are offset from GMRS channels in the 467 MHz
band. Specifically, FRS channels 1-7 are also GMRS frequencies and
FRS channels 8-14 are offset from GMRS frequencies.
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34. The above three services are perhaps more well known to the
Commission, but it is possible that there may be additional services
that should be consolidated or eliminated because they are based on
outmoded technology. We seek comment on this issue.
C. Ex Parte Rules
35. Permit-But-Disclose. This is as a ``permit-but-disclose''
proceeding subject to the requirements under section 1.1206(b) of the
Commission's rules.\40\ Ex parte presentations are permissible if
disclosed in accordance with Commission rules, except during the
Sunshine Agenda period when presentations, ex parte or otherwise, are
generally prohibited. Persons making oral ex parte presentations are
reminded that a memorandum summarizing a presentation must contain a
summary of the substance of the presentation and not merely a listing
of the subjects discussed. More than a one-or two-sentence description
of the views and arguments presented is generally required.\41\
Additional rules pertaining to oral and written presentations are set
forth in section 1.1206(b).
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\40\ See 47 CFR 1.1206(b); see also 47 CFR 1.1202, 1.1203.
\41\ See 47 CFR 1.1206(b)(2).
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D. Filing Requirements
36. Comments and Replies. Pursuant to sections 1.415 and 1.419 of
the Commission's rules,\42\ interested parties may file comments on or
before the dates indicated on the first page of this document. Comments
may be filed using: (1) The Commission's Electronic Comment Filing
System (``ECFS''), (2) the Federal Government's eRulemaking Portal, or
(3) procedures for filing paper copies.\43\
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\42\ See id. section 1.415, 1.419.
\43\ See Electronic Filing of Documents in Rulemaking
Proceedings, 13 FCC Rcd 11322 (1998).
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37. Electronic Filers: Comments may be filed electronically using
the Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs or the
Federal eRulemaking Portal: http://www.regulations.gov. Filers should
follow the instructions provided on the website for submitting
comments. For ECFS filers, if multiple docket or rulemaking numbers
appear in the caption of this proceeding, filers must transmit one
electronic copy of the comments for each docket or rulemaking number
referenced in the caption. In completing the transmittal screen, filers
should include their full name, U.S. Postal Service mailing address,
and the applicable docket or rulemaking number. Parties may also submit
an electronic comment by Internet e-mail. To get filing instructions,
filers should send an e-mail to [email protected], and include the following
words in the body of the message, ``get form.'' A sample form and
directions will be sent in response.
38. Paper Filers: Parties who choose to file by paper must file an
original and four copies of each filing. If more than one docket or
rulemaking number appears in the caption of this proceeding, filers
must submit two additional copies for each additional docket or
rulemaking number. Filings can be sent by hand or messenger delivery,
by commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail (although we continue to experience delays in
receiving U.S. Postal Service mail). All filings must be addressed to
the Commission's Secretary, Office of the Secretary, Federal
Communications Commission.
The Commission's contractor will receive hand-delivered or
messenger-delivered paper filings for the Commission's Secretary at 236
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be
held together with rubber bands or fasteners. Any envelopes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail should be addressed to 445 12th Street, SW., Washington, DC 20554.
39. Availability of Documents. Comments, reply comments, and ex
parte submissions will be available for public inspection during
regular business hours in the FCC Reference Center, Federal
Communications Commission, 445 12th Street, SW., CY-A257, Washington,
DC 20554. These documents will also be available free online, via ECFS.
Documents will be available electronically in ASCII, Word, and/or Adobe
Acrobat.
40. Accessibility Information. To request information in accessible
formats (computer diskettes, large print, audio recording, and
Braille), send an e-mail to [email protected] or call the Commission's
Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice),
(202) 418-0432 (TTY). This document can also be downloaded in Word and
Portable Document Format (``PDF'') at: http://www.fcc.gov.
Federal Communications Commission.
Marlene Dortch,
Secretary.
Appendix
Initial Regulatory Flexibility Analysis
41. As required by the Regulatory Flexibility Act (``RFA''),
\44\ the Commission has prepared this Initial Regulatory Flexibility
Analysis (``IRFA'') of the possible significant economic impact on
small entities by the policies and rules in the Further Notice of
Proposed Rulemaking (``NPRM''). Written public comments are
requested on this IRFA. Comments must be identified as responses to
the IRFA and must be filed on or before the dates indicated on the
first page of this NPRM. The Commission will send a copy of the
NPRM, including the IRFA, to the Chief Counsel for Advocacy of the
Small Business Administration.\45\ In addition, the NPRM and IRFA
(or summaries thereof) will be published in the Federal
Register.\46\
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\44\ 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'').
\45\ 5 U.S.C. 603(a).
\46\ Id.
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I. Need for, and Objectives of, the Proposed Rules
42. This NPRM seeks comment on ways the Commission can revise
the regulatory fee schedule for various categories of services. The
Commission would like to accomplish this in an efficient manner and
without undue public burden.
II. Legal Basis
43. This action, including publication of proposed rules, is
authorized under sections (4)(i) and (j), 9, and 303(r) of the
Communications Act of 1934, as amended.\47\
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\47\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
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III. Description and Estimate of the Number of Small Entities to
Which the Proposed Rules Will Apply
44. The RFA directs agencies to provide a description of, and
where feasible, an
[[Page 50292]]
estimate of the number of small entities that may be affected by the
proposed rules and policies, if adopted.\48\ The RFA generally
defines the term ``small entity'' as having the same meaning as the
terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \49\ In addition, the term ``small
business'' has the same meaning as the term ``small business
concern'' under the Small Business Act.\50\ 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.\51\
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\48\ 5 U.S.C. 603(b)(3).
\49\ 5 U.S.C. 601(6).
\50\ 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.''
\51\ 15 U.S.C. 632.
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45. Nationwide, there are a total of 22.4 million small
businesses, according to SBA data.\52\ A ``small organization'' is
generally ``any not-for-profit enterprise which is independently
owned and operated and is not dominant in its field.'' \53\
Nationwide, as of 2002, there were approximately 1.6 million small
organizations.\54\ 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.'' \55\ Census Bureau data for 2002
indicate that there were 87,525 local governmental jurisdictions in
the United States.\56\ We estimate that, of this total, 84,377
entities were ``small governmental jurisdictions.'' \57\ Thus, we
estimate that most governmental jurisdictions are small. Below, we
further describe and estimate the number of small entities,
applicants and licensees, that may be affected by our action.
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\52\ See SBA, Programs and Services, SBA Pamphlet No. CO-0028,
at p. 40 (July 2002).
\53\ 5 U.S.C. 601(4).
\54\ Independent Sector, The New Nonprofit Almanac & Desk
Reference (2002).
\55\ 5 U.S.C. 601(5).
\56\ U.S. Census Bureau, Statistical Abstract of the United
States: 2006, Section 8, page 272, Table 415.
\57\ 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, p. 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.
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46. 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.\58\ According
to Commission data,\59\ 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.
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\58\ 13 CFR 121.201, North American Industry Classification
System (NAICS) code 517110.
\59\ 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'').
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47. 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.\60\ According to Commission data,\61\ 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 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.
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\60\ 13 CFR 121.201, NAICS code 517110.
\61\ ``Trends in Telephone Service'' at Table 5.3.
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48. 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.\62\ According to Commission data,\63\ 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.
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\62\ 13 CFR 121.201, NAICS code 517310.
\63\ ``Trends in Telephone Service'' at Table 5.3.
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1. 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.\64\ According to Commission data,\65\ 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.
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\64\ 13 CFR 121. 201, NAICS code 517310.
\65\ ``Trends in Telephone Service'' at Table 5.3.
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2. 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.\66\ According
to Commission data,\67\ 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.
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\66\ 3 CFR 121.201, NAICS code 517110.
\67\ ``Trends in Telephone Service'' at Table 5.3.
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3. 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.\68\ According
to Commission data,\69\ 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.
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\68\ 13 CFR 121.201, NAICS code 517110.
\69\ ``Trends in Telephone Service'' at Table 5.3.
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4. 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.\70\ According
to Commission data,\71\ 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.
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\70\ 13 CFR 121.201, NAICS code 517110.
\71\ ``Trends in Telephone Service'' at Table 5.3.
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5. 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.\72\ According to Commission data,\73\ 89
carriers have reported that they are
[[Page 50293]]
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.
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\72\ 13 CFR 121.201, NAICS code 517310.
\73\ ``Trends in Telephone Service'' at Table 5.3.
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6. 800 and 800-Like Service Subscribers.\74\ 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.\75\ 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.\76\ 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.
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\74\ We include all toll-free number subscribers in this
category, including those for 888 numbers.
\75\ 13 CFR 121.201, NAICS code 517310.
\76\ ``Trends in Telephone Service'' at Tables 18.4, 18.5, 18.6,
and 18.7.
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7. 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.\77\
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\77\ 13 CFR 121.201, NAICS codes 517410 and 517910.
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8. 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 telecommunications.'' \78\ For this category,
Census Bureau data for 2002 show that there were a total of 371
firms that operated for the entire year.\79\ Of this total, 307
firms had annual receipts of under $10 million, and 26 firms had
receipts of $10 million to $24,999,999.\80\ Consequently, we
estimate that the majority of Satellite Telecommunications firms are
small entities that might be affected by our action.
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\78\ U.S. Census Bureau, 2002 NAICS Definitions, ``517410
Satellite Telecommunications;'' http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
\79\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 517410.
\80\ Id. An additional 38 firms had annual receipts of $25
million or more.
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9. 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.'' \81\ For this
category, Census Bureau data for 2002 show that there were a total
of 332 firms that operated for the entire year.\82\ 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.\83\ Consequently, we
estimate that the majority of Other Telecommunications firms are
small entities that might be affected by our action.
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\81\ U.S. Census Bureau, 2002 NAICS Definitions, ``517910 Other
Telecommunications;'' http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
\82\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, ``Establishment and Firm Size (Including Legal Form of
Organization),'' Table 4, NAICS code 517910.
\83\ Id. An additional 14 firms had annual receipts of $25
million or more.
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10. Wireless Telecommunications Carriers (except Satellite).
Since 2007, the Census Bureau has placed wireless firms within this
new, broad, economic census category.\84\ Prior to that time, such
firms were within the now-superseded categories of ``Paging'' and
``Cellular and Other Wireless Telecommunications.'' \85\ Under the
present and prior categories, the SBA has deemed a wireless business
to be small if it has 1,500 or fewer employees.\86\ Because Census
Bureau data are not yet available for the new category, we will
estimate small business prevalence using the prior categories and
associated data. For the category of Paging, data for 2002 show that
there were 807 firms that operated for the entire year.\87\ Of this
total, 804 firms had employment of 999 or fewer employees, and three
firms had employment of 1,000 employees or more.\88\ For the
category of Cellular and Other Wireless Telecommunications, data for
2002 show that there were 1,397 firms that operated for the entire
year.\89\ Of this total, 1,378 firms had employment of 999 or fewer
employees, and 19 firms had employment of 1,000 employees or
more.\90\ Thus, we estimate that the majority of wireless firms are
small.
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\84\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210
Wireless Telecommunications Categories (Except Satellite)''; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
\85\ U.S. Census Bureau, 2002 NAICS Definitions, ``517211
Paging''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.; U.S.
Census Bureau, 2002 NAICS Definitions, ``517212 Cellular and Other
Wireless Telecommunications''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
\86\ 13 CFR 121.201, NAICS code 517210 (2007 NAICS). The now-
superseded, pre-2007 CFR citations were 13 CFR 121.201, NAICS codes
517211 and 517212 (referring to the 2002 NAICS).
\87\ 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).
\88\ Id. The census data do not provide a more precise estimate
of the number of firms that have employment of 1,500 or fewer
employees; the largest category provided is for firms with ``1,000
employees or more.''
\89\ 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).
\90\ 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.''
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11. 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.'' \91\ Under the SBA
size standard, such a business is small if it has average annual
receipts of $21 million or less.\92\ According to Census Bureau data
for 1997, there were 2,751 firms in this category that operated for
the entire year.\93\ 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.\94\ Thus, under this size
standard, the great majority of firms can be considered small
entities.
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\91\ Office of Management and Budget, North American Industry
Classification System, page 515 (1997). NAICS code 518111, ``On-Line
Information Services.''
\92\ 13 CFR 121.201, NAICS code 518111.
\93\ 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.
\94\ Id.
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12. 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.'' \95\ 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.\96\ According to Commission
staff review of the BIA Publications, Inc., Media Access Pro
Television Database as of December 7, 200, about 825 (66 percent) of
the 1,250 commercial television stations in the United States had
revenues of $13 million or less. We note, however, that in assessing
whether a business entity qualifies as small under the
[[Page 50294]]
above definition, business (control) affiliations \97\ 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.
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\95\ U.S. Census Bureau, 2002 NAICS Definitions, ``515120
Television Broadcasting'' (partial definition); http://www.census.gov/epcd/naics02/def/NDEF515.HTM.
\96\ 13 CFR 121.201, NAICS code 515120.
\97\ ``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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13. 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.
14. There are also 2,117 low power television stations
(``LPTV'').\98\ 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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\98\ FCC News Release, ``Broadcast Station Totals as of
September 30, 2007.''
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15. Radio Broadcasting. The SBA defines a radio broadcast entity
that has $6 million or less in annual receipts as a small
business.\99\ Business concerns included in this industry are those
``primarily engaged in broadcasting aural programs by radio to the
public.'' \100\ 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 \101\ are included.\102\ Our
estimate, therefore likely overstates the number of small businesses
that might be affected by the rules adopted herein.
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\99\ See OMB, North American Industry Classification System:
United States, 1997, at 509 (1997) (Radio Stations) (NAICS code
515112).
\100\ Id.
\101\ ``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).
\102\ ``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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16. Auxiliary, Special Broadcast and Other Program Distribution
Services. This service involves a variety of transmitters, generally
used to relay broadcast programming to the public (through
translator and booster stations) or within the program distribution
chain (from a remote news gathering unit back to the station). The
Commission has not developed a definition of small entities
applicable to broadcast auxiliary licensees. The applicable
definitions of small entities are those, noted previously, under the
SBA rules applicable to radio broadcasting stations and television
broadcasting stations.\103\
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\103\ 13 CFR 121.201, NAICS codes 513111 and 513112.
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17. The Commission estimates that there are approximately 5,618
FM translators and boosters.\104\ 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.\105\
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\104\ FCC News Release, ``Broadcast Station Totals as of
September 30, 2007.''
\105\ 15 U.S.C. 632.
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18. 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.'' \106\ 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.\107\
According to Census Bureau data for 2002, there were a total of
1,191 firms in this category that operated for the entire year.\108\
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.\109\ Thus, under this size standard, the majority of firms
can be considered small.
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\106\ U.S. Census Bureau, 2002 NAICS Definitions, ``517510 Cable
and Other Program Distribution;'' http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
\107\ 13 CFR 121.201, NAICS code 517510.
\108\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510.
\109\ Id. An additional 61 firms had annual receipts of $25
million or more.
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19. 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.\110\ Industry data indicate that, of 1,076 cable
operators nationwide, all but eleven are small under this size
standard.\111\ In addition, under the Commission's rules, a ``small
system'' is a cable system serving 15,000 or fewer subscribers.\112\
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.\113\ Thus, under this second
size standard, most cable systems are small.
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\110\ 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).
\111\ These data are derived from: R.R. Bowker, Broadcasting &
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8
& C-2; Warren Communications News, Television & Cable Factbook 2006,
``Ownership of Cable Systems in the United States,'' pages D-1805 to
D-1857.
\112\ 47 CFR 76.901(c).
\113\ 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.
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20. 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.'' \114\ The Commission has determined that an
operator serving fewer than 677,000 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.\115\ Industry data indicate that, of 1,076 cable
operators nationwide, all but ten are small under this size
standard.\116\ 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,\117\ and therefore we are unable to
[[Page 50295]]
estimate more accurately the number of cable system operators that
would qualify as small under this size standard.
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\114\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
\115\ 47 CFR 76.901(f); see Public Notice, ``FCC Announces New
Subscriber Count for the Definition of Small Cable Operator,'' 16
FCC Rcd 2225 (Cable Services Bureau, 2001).
\116\ These data are derived from: R.R. Bowker, Broadcasting &
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8
& C-2; Warren Communications News, Television & Cable Factbook 2006,
``Ownership of Cable Systems in the United States,'' pages D-1805 to
D-1857.
\117\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's
finding that the operator does not qualify as a small cable operator
pursuant to Sec. 76.901(f) of the Commission's rules. See 47 CFR
76.909(b).
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21. Open Video Services. Open Video Service (``OVS'') systems
provide subscription services.\118\ The SBA has created a small
business size standard for Cable and Other Program
Distribution.\119\ 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.\120\ 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.
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\118\ See 47 U.S.C. 573.
\119\ 13 CFR 121.201, NAICS code 517510.
\120\ See http://www.fcc.gov/csb/ovs/csovscer.html.
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22. 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
Distribution, which is: All such firms having $13.5 million or less
in annual receipts.\121\ According to Census Bureau data for 2002,
there were a total of 1,191 firms in this category that operated for
the entire year.\122\ 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.\123\ Thus, under this size standard,
the majority of firms can be considered small.
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\121\ 13 CFR 121.201, NAICS code 517510.
\122\ U.S. Census Bureau, 2002 Economic Census, Subject Series:
Information, Table 4, Receipts Size of Firms for the United States:
2002, NAICS code 517510.
\123\ Id. An additional 61 firms had annual receipts of $25
million or more.
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23. Multichannel Video Distribution and Data Service
(``MVDDS''). 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.\124\ These
definitions were approved by the SBA.\125\ 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.\126\ 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.\127\
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\124\ 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).
\125\ See Letter from Hector V. Barreto, Administrator, SBA, to
Margaret W. Wiener, Chief, Auctions and Industry Analysis Division,
Wireless Telecommunications Bureau, FCC (Feb. 13, 2002).
\126\ See ``Multichannel Video Distribution and Data Service
Auction Closes,'' Public Notice, 19 FCC Rcd 1834 (2004).
\127\ 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).
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24. Amateur Radio Service. These licensees are held by
individuals in a noncommercial capacity; these licensees are not
small entities.
25. 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.\128\
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.\129\ 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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\128\ 13 CFR 121.201, NAICS code 517212.
\129\ Amendment of the Commission's Rules Concerning Maritime
Communications, Third Report and Order and Memorandum Opinion and
Order, 13 FCC Rcd 19853 (1998).
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26. 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.\130\ 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'').\131\ 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.\132\ 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.
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\130\ 47 CFR Part 90.
\131\ 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.
\132\ 13 CFR 121.201, NAICS Code 517212.
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27. Public Safety Radio Services. Public Safety radio services
include police, fire, local government, forestry conservation,
highway maintenance, and emergency medical services.\133\ There are
a total of
[[Page 50296]]
approximately 127,540 licensees in these services. Governmental
entities \134\ 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.\135\
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.\136\ The
RFA generally defines the term ``small entity'' as having the same
meaning as the terms ``small business,'' ``small organization,'' and
``small governmental jurisdiction.''\137\ In addition, the term
``small business'' has the same meaning as the term ``small business
concern'' under the Small Business Act.\138\ 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.\139\
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\133\ 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.
\134\ 47 CFR 1.1162.
\135\ 5 U.S.C. 601(5).
\136\ 5 U.S.C. 603(b)(3).
\137\ 5 U.S.C. 601(6).
\138\ 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.''
\139\ 15 U.S.C. 632.
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IV. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements:
28. The Commission is concerned that some entities are paying
too much and others are not paying enough regulatory fees. In this
FNPRM, the Commission seeks comment on ways to modify the regulatory
fee rules to better reflect the current industry and offered
services. In addition, the Commission is concerned with rule non-
compliance. The Commission could reduce such noncompliance by
various means, including adopting filing requirements for
international bearer circuits for non-common carriers. Common
carriers already have filing requirements.
V. Steps Taken to Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered:
29. 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.\140\ The Commission is seeking comment on ways
to revise the regulatory fees to possibly include more entities and
to reduce or increase the fee burden on certain fee categories. The
Commission is also seeking comment on reducing international bearer
circuit regulatory fee non-compliance and close loopholes in the
Commission's rules. It is possible that additional filing
requirements for non-common carriers will be considered, with
respect to international bearer circuits. These filing requirements
already apply to common carriers. There may be other proposals
offered by commenters to add or reduce regulatory fees or to reduce
non-compliance with our rules. Such proposals may include reporting
or recordkeeping requirements. It is important that all entities
bear their required share of regulatory fees; otherwise, the
companies that comply with the rules must pay for those that refuse
to comply.
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\140\ 5 U.S.C. 603.
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VI. Federal Rules that May Duplicate, Overlap, or Conflict with the
Proposed Rules
30. None.
[FR Doc. E8-19431 Filed 8-25-08; 8:45 am]
BILLING CODE 6712-01-P