[Federal Register Volume 73, Number 166 (Tuesday, August 26, 2008)]
[Rules and Regulations]
[Pages 50201-50222]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19899]


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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: Final rule.

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SUMMARY: In this document, we amend our Schedule of Regulatory Fees to 
collect $312,000,000 in regulatory fees for Fiscal Year (FY) 2008, 
pursuant to section 9 of the Communications Act of 1934, as amended 
(the Act). These fees are mandated by Congress and are collected to 
recover the regulatory costs associated with the Commission's 
enforcement, policy and rulemaking, user information, and international 
activities.

DATES: Effective September 25, 2008.

FOR FURTHER INFORMATION CONTACT: CORES Helpdesk at (877) 480-3201, 
option 4, or [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

 
                        Heading                           Paragraph No.
 
I. Introduction........................................                1
II. Report and Order...................................                3
    A. Calculation of Revenue and Fee Requirements.....                4
    B. Additional Adjustments to Payment Units.........                5
        1. Commercial Mobile Radio (``CMRS'') Messaging                7
         Service.......................................
        2. Private Land Mobile Radio Service                           9
         (``PLMRS'')...................................
        3. Regulatory Fee Obligations for AM Expanded                 11
         Band Broadcasters.............................
        4. International Bearer Circuits...............               14
            a. Background..............................               14
            b. Discussion..............................               19

[[Page 50202]]

 
APPENDIX A Final Regulatory Flexibility Analysis
APPENDIX B List of Commenters
 
ATTACHMENTS
    Attachment A Sources of Payment Unit Estimates for
     FY 2008...........................................
    Attachment B Calculation of FY 2008 Revenue
     Requirements and Pro-Rata Fees....................
    Attachment C FY 2008 Schedule of Regulatory Fees...
    Attachment D Factors, Measurements, and
     Calculations That Determine Station Contours and
     Population Coverages..............................
    Attachment E FY 2007 Schedule of Regulatory Fees...
 

I. Introduction

    1. In this Report and Order we conclude a proceeding to collect 
$312,000,000 in regulatory fees for Fiscal Year (``FY'') 2008, pursuant 
to section 9 of the Communications Act of 1934, as amended (the 
``Act''). Section 9 regulatory fees are mandated by Congress and are 
collected to recover the regulatory costs associated with the 
Commission's enforcement, policy and rulemaking, user information, and 
international activities.\1\ In this annual regulatory fee proceeding, 
we retain the established methods, policies, and procedures for 
collecting section 9 regulatory fees adopted by the Commission in prior 
years. Consistent with our established practice, we intend to collect 
these regulatory fees during a filing window in September 2008 in order 
to collect the required amount by the end of our fiscal year.
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    \1\ 47 U.S.C. 159(a).
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    2. As a general matter, our annual regulatory fee rulemakings must 
be concluded in a short time frame to allow regulatees to make their 
payments for the relevant fiscal year that fund Commission operations. 
These yearly rulemaking proceedings are not conducive to exploring more 
general regulatory fee issues. We have not conducted an in-depth review 
of our regulatory fee methodology since 1994.\2\ We, however, adopt a 
Further Notice of Proposed Rulemaking (``FNPRM'') to explore how we can 
comprehensively make the Commission's regulatory fee process more 
equitable.
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    \2\ See Implementation of Section 9 of the Communications Act, 
Report and Order, 9 FCC Rcd 5333 (1994).
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II. Report and Order

    3. On May 8, 2008, we released a Notice of Proposed Rulemaking and 
Order (``FY 2008 NPRM'') seeking comment on regulatory fee issues for 
FY 2008.\3\ The section 9 regulatory fee proceeding is an annual 
rulemaking process to ensure the Commission collects the fee amount 
required by Congress each year. In the FY 2008 NPRM, we proposed to 
largely retain the section 9 regulatory fee methodology used in the 
prior fiscal year. We received nine comments and 12 reply comments.\4\ 
We address the issues raised in our FY 2008 NPRM below.
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    \3\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, Notice of Proposed Rulemaking and Order, 23 FCC Rcd 7987 
(2008) (``FY 2008 NPRM'').
    \4\ See Appendix C for the list of commenters and abbreviated 
names.
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A. Calculation of Revenue and Fee Requirements

    4. In our FY 2008 regulatory fee assessment, we use the same 
section 9 regulatory fee assessment methodology adopted for FY 2007. 
Each fiscal year, the Commission proportionally allocates the total 
amount that must be collected via section 9 regulatory fees. The 
results of our FY 2008 regulatory fee assessment methodology (including 
a comparison to the prior year's results) are contained in Attachment 
B. To collect the $312,000,000 required by Congress, we adjust the FY 
2007 amount upward by approximately 7.5 percent. Consistent with past 
practice, we then divide the FY 2008 amount by the number of payment 
units in each fee category to determine the unit fee.\5\ As in prior 
years, for cases involving small fees, e.g., licenses that are renewed 
over a multiyear term, we divide the resulting unit fee by the term of 
the license and then round these unit fees consistent with the 
requirements of section 9(b)(2) of the Act.
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    \5\ In many instances, the regulatory fee amount is a flat fee 
per licensee or regulatee. In some instances, the fee amount 
represents a per-unit fee (such as for International Bearer 
Circuits), a per-unit subscriber fee (such as for Cable, Commercial 
Mobile Radio Service (``CMRS'') Cellular/Mobile and CMRS Messaging), 
or a fee factor per revenue dollar (Interstate Telecommunications 
Service Provider (``ITSP'') fee). The payment unit is the measure 
upon which the fee is based, such as a licensee, regulatee, or 
subscriber fee.
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B. Additional Adjustments to Payment Units

    5. In calculating the FY 2008 regulatory fees listed in Attachment 
C, we further adjusted the FY 2007 list of payment units (Attachment A) 
based upon licensee databases and industry and trade group projections. 
In some instances, Commission licensee databases were used; in other 
instances, actual prior year payment records and/or industry and trade 
association projections were used in determining the payment unit 
counts.\6\ Where appropriate, we adjusted and rounded our final 
estimates to take into consideration events that may impact the number 
of units for which regulatees submit payment, such as waivers and 
exemptions that may be filed in FY 2008, and fluctuations in the number 
of licensees or station operators due to economic, technical, or other 
reasons. Therefore, our estimated FY 2008 payment units are based on FY 
2007 actual payment units, but the number may have been rounded or 
adjusted slightly to account for these variables.
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    \6\ The databases we consulted include, but are not limited to, 
the Commission's Universal Licensing System (``ULS''), International 
Bureau Filing System (``IBFS''), Consolidated Database System 
(``CDBS'') and Cable Operations and Licensing System (``COALS''). We 
also consulted industry sources including, but not limited to, 
Television & Cable Factbook by Warren Publishing, Inc., and the 
Broadcasting and Cable Yearbook by Reed Elsevier, Inc., as well as 
reports generated within the Commission such as the Wireline 
Competition Bureau's Trends in Telephone Service and the Wireless 
Telecommunications Bureau's Numbering Resource Utilization Forecast 
and Annual CMRS Competition Report.
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    6. We consider additional factors in determining regulatory fees 
for AM and FM radio stations. These factors are facility attributes and 
the population served by the radio station. The calculation of the 
population served is determined by coupling current U.S. Census Bureau 
data with technical and engineering data, as detailed in Attachment D. 
Consequently, the population served, as well as the class and type of 
service (AM or FM), determines the regulatory fee amount to be paid.\7\
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    \7\ In addition, beginning in FY 2005, we established a 
procedure by which we set regulatory fees for AM and FM radio and 
VHF and UHF television Construction Permits each year at an amount 
no higher than the lowest regulatory fee in that respective service 
category. For example, the regulatory fee for a Construction Permit 
for an AM radio station will never be more than the regulatory fee 
for an AM Class C radio station serving a population of less than 
25,000.
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1. Commercial Mobile Radio (``CMRS'') Messaging Service
    7. CMRS Messaging Service, which replaced the CMRS One-Way Paging 
fee category in 1997, includes all

[[Page 50203]]

narrowband services.\8\ In the FY 2008 NPRM, we proposed maintaining 
the messaging service regulatory fee at $0.08 per subscriber; the rate 
first established for this service in FY 2002.\9\
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    \8\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 1997, MD Docket No. 96-186, Report and Order, 12 FCC Rcd 17161, 
17184-85, para. 60 (1997) (``FY 1997 Report and Order'').
    \9\ FY 2008 NPRM at para. 5.
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    8. One commenter, AAPC, addressed this issue.\10\ AAPC agrees with 
our proposal and observes that maintaining the fee at the existing 
level is a reasonable and appropriate action due to the paging 
industry's declining subscriber base.\11\ We conclude that for FY 2008 
we should continue this regulatory fee rate at $0.08 per subscriber due 
to the declining subscriber base in this industry.\12\
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    \10\ AAPC Comments at 1-4.
    \11\ Id. at 2.
    \12\ The subscriber base in the paging industry declined 83 
percent from 40.8 million to 7.1 million, from FY 1997 to FY 2007, 
according to FY 2007 collection data, as of Sept. 30, 2007.
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2. Private Land Mobile Radio Service (``PLMRS'')
    9. Commenters observe that the proposed FY 2008 fees for a PLMRS 
applicant are $40 per year for exclusive use PLMRS and $20 per year for 
shared use PLMRS.\13\ Regulatory fees for this service have increased 
significantly over the past three years; \14\ however, there are 74 
percent fewer licensees in 2008 than there were in 2005.\15\ PCIA also 
``perceives'' a decline in Commission staffing devoted to PLMRS, which 
would correlate with the reduction in licensees.\16\ Enterprise 
observes that there are few rulemakings associated with these licensees 
and the Commission has not allocated additional spectrum for these 
users since the mid-1980s.\17\ In addition, because these licenses are 
site-specific, licensees often require multiple authorizations, which 
further increases the regulatory fee assessment.\18\ Further, these 
Part 90 licenses are generally private internal systems used to support 
businesses and are not commercial communications systems with a 
substantial revenue stream.\19\ For these reasons, commenters contend 
that we should not substantially increase the regulatory fees for 
PLMRS.
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    \13\ PCIA Comments at 2; Enterprise Reply Comments at 2-3.
    \14\ PCIA Comments at 2.
    \15\ PCIA Comments at 3; Enterprise Reply Comments at 3.
    \16\ PCIA Comments at 3.
    \17\ Enterprise Reply Comments at 4.
    \18\ Enterprise Reply Comments at 4-5.
    \19\ Enterprise Reply Comments at 5-6.
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    10. Instead of freezing the regulatory fees, we are going to 
address this matter more comprehensively in the attached FNPRM in the 
context of our entire regulatory fee structure. At this time; however, 
we are adopting the proposals in the FY 2008 NPRM for FY 2008.
3. Regulatory Fee Obligations for AM Expanded Band Broadcasters
    11. Currently, AM expanded band stations in the 1610-1700 kHz range 
are exempt from regulatory fees, as a matter of Commission policy. In 
the FY 2008 NPRM, we sought comment on the most efficient way of 
assessing a regulatory fee on expanded band AM stations.\20\ We sought 
comment on whether we should assess regulatory fees when the licensee 
has chosen to retain the expanded band station while no longer keeping 
the standard AM station as well as where the licensee continues to 
operate the standard AM station as well as the expanded band 
station.\21\
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    \20\ FY 2008 NPRM at para. 7.
    \21\ Id.
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    12. Two commenters addressed the AM expanded band issue. MRB is 
concerned with the situation where an expanded band licensee has 
relinquished its expanded band license but continues to operate under 
special temporary authority (``STA'').\22\ In such a situation, the 
licensee is operating the standard band and the expanded band stations, 
but only holds a license to the standard band station. The five-year 
transition period for allowing lower band AM licensees to continue to 
operate the AM expanded band and the lower band has not yet expired for 
all licensees.\23\
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    \22\ MRB has petitioned the Commission to waive the requirement 
that either the expanded band or the standard band license be 
returned.
    \23\ Chisholm Reply Comments at 1.
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    13. There is no compelling reason to permanently exempt AM expanded 
band licensees from paying regulatory fees. As a general matter, it 
would be appropriate to treat the AM expanded band and the AM standard 
band similarly for regulatory fee purposes. We note, however, that 
currently only 20 licensees out of 54 have surrendered one of their 
dual licenses. The remaining 34 licensees have either conditionally 
surrendered one license and are operating under an STA permitting dual 
operation or have retained both licenses and are continuing dual 
operation under STAs. The Commission has before it the pending issue of 
whether we should permit licensees to continue to hold both standard 
band and expanded band licenses.\24\ This issue should be resolved 
before we can assess regulatory fees on the expanded band AM licensees; 
therefore, we are not assessing regulatory fees on expanded band AM 
licenses at this time.
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    \24\ See Petition for Stay of Effective Dates, filed Mar. 27, 
2006; Request for Waiver of Rules Requiring Return of AM Licenses,'' 
filed Mar. 27, 2006.
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4. International Bearer Circuits
a. Background
    14. In our FY 2006 NPRM,\25\ we observed that VSNL 
Telecommunications (US) Inc. (``VSNL'') had filed a Petition for 
Rulemaking urging the Commission to revise its regulatory fee 
methodology for international bearer circuits (``IBCs'').\26\ In the 
Petition, VSNL proposes that the Commission: (1) Reclassify non-common 
carrier submarine cable service as a new fee category \27\ (all other 
carriers subject to IBC fees would be in the second category); \28\ (2) 
apportion the IBC fee revenue requirement between the two categories, 
based on a comparative assessment of the regulatory services used by 
the entities in each category; \29\ and (3) assess a flat annual fee 
per cable system for non-common carrier submarine cable operators.\30\
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    \25\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, MD Docket No. 06-68, Notice of Proposed Rulemaking, 21 
FCC Rcd 3708, 3718, n.20 (2006) (``FY 2006 NPRM'').
    \26\ See Petition for Rulemaking of VSNL Telecommunications (US) 
Inc., RM-11312 (filed Feb. 6, 2006) (``VSNL Petition''). VSNL 
Telecommunications is now Tata Communications. We released a Public 
Notice designating the proceeding as RM-11312 and seeking comment on 
the Petition. See Consumer and Governmental Affairs Bureau, 
Reference Information Center, Public Notice, Report No. 2759 (rel. 
Feb. 15, 2006). In our FY 2006 Report and Order we stated that the 
issues presented in the Petition warranted consideration separately 
from the Commission's annual regulatory fee proceeding. See 
Assessment and Collection of Regulatory Fees for Fiscal Year 2006, 
MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092, 8098-99, 
para. 18 (2006) (``FY 2006 Report and Order'').
    \27\ Petition at 5. See also Apollo RM-11312 Comments at 2-4. 
AT&T filed comments disagreeing with this proposal and observing 
that the proposed new fee category would likely exclude all or most 
facilities-based carrier circuits on non-common carrier cables as 
well as the international bearer circuits on common carrier cables. 
AT&T RM-11312 Comments at 6. SIA agrees that regulatory fee reform 
is needed, but contends that such reform should extend to the 
treatment on non-common carrier satellite operators as well. SIA RM-
11312 Comments at 1-4.
    \28\ Petition at 5.
    \29\ Id. at 5-6. See also Level 3 RM-11312 Comments at 6-7.
    \30\ Petition at 6. See also Hibernia Atlantic RM-11312 Comments 
at 7-8; Level 3 RM-11312 Comments at 8-10 (supporting a flat per-
system fee on all submarine cable systems); Level 3 RM-11312 Reply 
Comments at 8-9.
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    15. In our FY 2008 NPRM, we granted VSNL's petition and sought 
comment on the methodology used to calculate

[[Page 50204]]

regulatory fees for providers of international bearer circuits.\31\ We 
specifically sought comment on whether the Commission should retain the 
current methodology used to assess these regulatory fees, or modify the 
methodology.\32\ In addition to the comments filed to the FY 2008 NPRM, 
a Revised Joint Proposal for amending our IBC regulatory fee 
methodology was filed as an ex parte by a group of carriers on July 11, 
2008.\33\
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    \31\ The Commission's website provides the following information 
regarding International and Satellite License Fees, for FY 2007:
    International Bearer Circuits
    Who Must Pay: Regulatory fees for International Bearer Circuits 
are to be paid by facilities-based common carriers that have active 
international bearer circuits as of December 31, 2006 in any 
transmission facility for the provision of service to an end user or 
resale carrier, which includes active circuits to themselves or to 
their affiliates. In addition, non-common carrier satellite 
operators must pay a fee for each circuit sold or leased to any 
customer, including themselves or their affiliates, other than an 
international common carrier authorized by the Commission to provide 
U.S. international common carrier services. Non-common carrier 
submarine cable operators are also to pay fees for any and all 
international bearer circuits sold on an indefeasible right of use 
(IRU) basis or leased to any customer, including themselves or their 
affiliates, other than an international common carrier authorized by 
the Commission to provide U.S. international common carrier 
services. If you are required to pay regulatory fees, you should pay 
based on your active 64 KB circuit count as of December 31, 2006.
    For more information regarding compliance with regulatory fee 
payment requirements for international bearer circuits, refer to FCC 
Public Notice: Compliance with Regulatory Fee Requirements by Cable 
Landing Licensees Operating on a Non-Common Carrier Basis (DA 04-
2027, released July 6, 2004).
    Fee Calculation: $1.05 per active 64 KB circuit or equivalent.
    See http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-275938A6. pdf.
    \32\ FY2008 NPRM at para. 8. Comments filed earlier in response 
to the VSNL Petition are referred to as ``RM-11312 Comments.'' Many 
of the same commenters filed comments on this issue in response to 
our FY 2008 NPRM. On May 30, 2008, a joint proposal for reforming 
International Bearer Circuit fees was submitted by Level 3 
Communications, LLC, Brasil Telecom of America, Inc., Columbus 
Networks USA, Inc., ARCOS-1 USA, Inc., A.SUR Net, Inc., Hibernia 
Atlantic U.S. LLC, Pacific Crossing Limited, and PC Landing Corp. 
See Joint Proposal, MD Docket No. 08-65, Attach. (filed May 30, 
2008).
    \33\ See Letter from Kent D. Bressie, Counsel, Level 3 
Communications, LLC to Marlene H. Dortch, Secretary, FCC, MD Docket 
No. 08-65, Attach. (filed July 11, 2008). This revised joint 
proposal was submitted by Brasil Telecom of America, Inc., Columbus 
Networks USA, Inc., ARCOS-1 USA Inc., A.SUR Net, Inc., Global 
Crossing Ltd., Level 3 Communications, LLC, Hibernia-Atlantic U.S. 
LLC, Marine Cable Corp., Pacific Crossing Limited and PC Landing 
Corp., Reliance Globalcom Limited (fka FLAG Telecom Group Limited), 
and Tata Communications (US) Inc. (formerly VSNL International (US) 
Inc.) (``Revised Joint Proposal'').
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    16. This proposal modified the earlier joint proposal to address 
several concerns raised by the parties. The Revised Joint Proposal 
would do the following: (1) Create a new regulatory fee category for 
submarine cablesystems, a new SCS fee, for both common carrier and non-
common carrier systems.\34\ The new SCS fee would be a flat fee, per 
cable landing license, with a reduced fee amount for ``small-capacity 
systems.'' In addition, a consortium would be considered one cable 
landing license for SCS fee purposes, regardless of how many licensees 
were members of the consortium. (2) The SCS fee would be based 
originally on one-half of the current IBC category. According the 
Revised Joint Proposal, this would subsequently be revised downward 
based on the Commission's internal calculations of regulatory effort 
expended to regulate this industry.\35\ (3) In addition, there would be 
a new IBC fee based on active circuits, originally based on the 
remaining one-half of the current fee category, for common carriers. 
Thus, under the Revised Joint Proposal, common carriers would pay the 
flat SCS per license fee and a per circuit fee and non-common carriers 
would pay only the flat SCS per license fee.
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    \34\ Revised Joint Proposal at 1.
    \35\ Id.
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    17. Our current rules provide that regulatory fees for 
international bearer circuits are to be paid by facilities-based common 
carriers that have active international bearer circuits in any 
transmission facility for the provision of service to an end user or 
resale carrier, which includes active circuits to themselves or to 
their affiliates.\36\ Non-common carrier submarine cable operators are 
also to pay fees for any and all international bearer circuits sold on 
an indefeasible right of use (``IRU'') basis or leased to any customer, 
including themselves or their affiliates, other than an international 
common carrier authorized by the Commission to provide U.S. 
international common carrier services.\37\ Regulatory fees are based on 
the number of active 64 kbps international bearer circuits as of 
December 31 of the previous year.
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    \36\ See Implementation of Section 9 of the Communications Act, 
Assessment and Collection of Regulatory Fees for Fiscal Year 2006, 
Report and Order, 21 FCC Rcd 8092, 8107, n. 62 (2006) (``FY 2006 
Report and Order''); Assessment and Collection of Regulatory Fees 
for Fiscal Year 2001, MD Docket No. 01-76, Report and Order, 16 FCC 
Rcd 13525, 13593 (2001); Regulatory Fees Fact Sheet: What You Owe--
International and Satellite Services Licensees for FY 2005 at 3 
(rel. July 2005) (the fact sheet is available on the FCC Web site 
at: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC_249904A4.pdf).
    \37\ FY 2006 Report and Order, 21 FCC Rcd at 8107, n. 62.
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    18. We agree with the commenters who argue that our methodology for 
calculating IBC regulatory fees needs to be reformed and we intend to 
adopt a revised methodology to be effective for FY 2009. We recognize 
that an in-depth review of our IBC regulatory fee methodology may be 
long overdue. We also note that there appears to be significant non-
compliance with our current regulatory fee requirements. One issue 
raised by several commenters is that the regulatory fee for IBCs is far 
too high. We will need to address the issue of non-compliance to 
determine if the fee is still considered unreasonably high after non-
payors are contributing as well.\38\ As we mentioned earlier, if some 
do not pay their share of regulatory fees, the amount of fees due is 
increased for the remaining parties. We consider rule non-compliance a 
serious issue affecting all regulatees.
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    \38\ We note that the flat fee proposed by commenters may 
address the non-compliance issue as well.
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b. Discussion
    19. Several commenters argue that non-common carrier submarine 
cable operators generate only a fraction of the regulatory costs common 
carriers generate, yet they pay the same per unit regulatory fees.\39\ 
AT&T and Verizon disagree, and argue that due to recent deregulation 
such as elimination of tariff filing requirements, the reduced 
disparities between the Commission's treatment of these services 
support the continued application of the same regulatory fees to all 
international bearer circuits.\40\ AT&T observes that the private 
carriers' argument ignores the regulatory costs incurred in connection 
with the Commission's international representational activities, work 
with foreign regulators, and other activities in support of the 
Commission's international regulatory goals to promote effective 
competition in the global marketplace.\41\ AT&T contends that the same 
fees should be applied to all types of submarine cable systems.\42\ The 
difference in size between common carrier systems and private carrier 
systems, contends AT&T, is even larger now than when VSNL filed its 
petition.\43\ AT&T, Verizon, and Qwest

[[Page 50205]]

oppose any new fee structure that would impose higher fees on 
facilities-based common carriers, such as the proposal that non-common 
carriers would no longer pay fees on active circuits.\44\
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    \39\ See, e.g., Petition at 10; Flag RM-11312 Comments at 3; SIA 
RM-11312 Comments at 4; Level 3 RM-11312 Reply Comments at 6-7; 
Level 3 Comments at 11-14.
    \40\ AT&T RM-11312 Comments at 8; Verizon RM-11312 Reply 
Comments at 2-3; Verizon Reply Comments at 4.
    \41\ AT&T RM-11312 Comments at 9; Verizon RM-11312 Reply 
Comments at 3; AT&T Reply Comments at 17; Verizon Reply Comments at 
5.
    \42\ AT&T RM-11312 Reply Comments at 7.
    \43\ AT&T Comments at 3. AT&T observes that that the average 
capacity of the 27 U.S.-licensed non-common carrier systems is 
approximately 3.2 million circuits, almost ten times larger than the 
average capacity of U.S. common carrier systems. Id. at note 4.
    \44\ AT&T Reply Comments at 1-6; Verizon Reply Comments at 2; 
Qwest Reply Comments at 2.
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    20. VSNL argues in its Petition that the number of active 64 kpbs 
circuits bears no relationship to the regulatory costs that operators 
generate.\45\ For example, one commenter explains, if a licensee 
doubles its cable's capacity through a technology upgrade, the 
regulatory fee obligations will nearly double even though the 
regulatory costs to the Commission do not change.\46\ Pacific contends 
that there is no correlation between cable system size and the 
Commission's regulatory effort.\47\ Commenters observe that the 64 kbps 
increment measurement is an artifact of the original channelized 
telephone systems, but is not relevant to the current broadband 
environment where data passes unchannelized in packetized form.\48\
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    \45\ Petition at 7-8. Level 3 contends that this fee timing 
issue can make owners base their capacity turn-up decisions on non-
market factors, such as activating circuits only at certain times of 
the year. Level 3 RM-11312 Comments at 5.
    \46\ Flag RM-11312 Comments at 6. Reliance observes that, with 
respect to high-capacity leases, the per 64 kbps circuit fee 
distorts the market. Reliance Reply Comments at 5.
    \47\ Pacific Reply Comments at 5.
    \48\ Joint Commenters RM-11312 Reply Comments at 4-5; Global 
Crossing Comments at 2; Pacific Comments at 11; Tata Comments at 2-
4. Commenters also observe that IBC operators sell services as a 
``back up'' or restoration service, which does not fit the 
definition of ``active'' circuits. Level 3 Comments at 15. AT&T and 
Qwest, on the other hand, contend that IBC fees are based on 
``active'' capacity, which provides a reasonable and 
nondiscriminatory method to allocate fees and is similar to the fee 
structure for other licensees. AT&T RM-11312 Comments at 11-13; 
Qwest Reply Comments at 3.
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    21. The flat annual fee proposed by VSNL as an alternative to our 
current circuit-based fee would be derived by dividing the revenue 
requirement for non-common carrier submarine cable systems by the 
number of licensed systems.\49\ The Joint Proposal suggested by Level 3 
and others and the Revised Joint Proposal ex parte would assess a per-
system fee on common carriers and private carriers (regardless of 
system size) and would also impose a per-circuit fee for active 
circuits common carriers own or lease.\50\ The net effect of either of 
the flat fee proposals would be to provide significant advantages to 
private carriers.\51\ Global Crossing observes that the Joint Proposal 
would result in double counting where a common carrier has capacity 
from an affiliated private operator.\52\ Common carriers disagree with 
the flat fee proposal on the grounds that this would require smaller 
systems to pay higher fees per circuit and would adversely affect 
common carrier systems which are generally smaller than non-common 
carrier systems.\53\ The Joint Commenters contend that a flat per-
system fee would discourage investment in the deployment of new 
submarine cable systems in the Caribbean or South America.\54\ Instead, 
the Joint Commenters argue, the Commission should adopt a two-tiered 
approach.\55\
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    \49\ Petition at 6. Apollo agrees with VSNL and argues that a 
fee per cable landing license, rather than a per 64 kpbs 
international bearer circuit, should be adopted. Apollo RM-11312 
Comments at 6. SIA suggests assessing a flat fee based on section 
214 authorizations and cable landing licenses. SIA RM-11312 Comments 
at 2. Pacific agrees that a per system fee would be fair, equitable, 
and easily administrated. Pacific Comments at 4. Telstra suggests 
that if we adopt a flat fee, we should establish a two-year ramp up 
period for newly-licensed systems. Telstra Reply Comments at 2-3.
    \50\ Level 3 Comments at 18; Level 3 Reply Comments at 5; 
Verizon Reply Comments at 3; Global Crossing Reply Comments at 2-3; 
Qwest Reply Comments at 4. Reliance supports the Joint Proposal. 
Reliance Reply Comments at 7.
    \51\ AT&T Reply Comments at 5. Qwest observes that the Joint 
Proposal contains different fee structures for submarine cable 
operators based on their common carrier or non-common carrier status 
and is not competitively neutral. Qwest Reply Comments at 5.
    \52\ Global Crossing Reply Comments at 2.
    \53\ AT&T RM-11312 Comments at 10-11; Qwest RM-11312 Reply 
Comments at 4; AT&T Comments at 3; AT&T Reply Comments at 1-6; 
Verizon Reply Comments at 1-3. The Joint Commenters, who operate 
smaller systems, contend that they would be unfairly prejudiced by a 
flat per-system fee. Joint Commenters at 2.
    \54\ Joint Commenters at 2.
    \55\ Id. at 3.
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    22. Pacific contends that the rate proposed in our FY 2008 NPRM of 
$1.09 is too high because the number of active circuits used in the 
calculation was far too low.\56\ According to Pacific, international 
common carriers alone maintained 7.55 million active 64 kpbs circuits, 
so our estimate of 7.5 million for common carrier and non-common 
carrier combined must be revised upward.\57\ Pacific concludes that if 
the Commission used more realistic estimates of active circuits, the 
per unit fee would be $.20 per circuit instead of $1.09 per 
circuit.\58\ Several commenters observe that the prices for higher-
capacity circuits have dropped more steeply than the prices for low-
capacity circuits, thus the regulatory fee is an increasing percentage 
of the price of higher-capacity circuits.\59\ The current IBC 
regulatory fee methodology discourages new investment to increase the 
capacity of existing undersea cables.\60\ Verizon observes that under 
our current regulatory fee methodology, the IBC fee has dropped from 
$7.00 per circuit in 2000 to $1.09 per circuit in 2008, showing that 
increased demand has resulted in lower per circuit fees.\61\ AT&T notes 
that private carriers have continued to rapidly expand their U.S. 
underseas cable capacity.\62\
---------------------------------------------------------------------------

    \56\ Pacific Comments at 7-8.
    \57\ Id. citing the Commission's ``International Bureau Report 
on 2006 Section 43.82 Circuit Status Data,'' at 29, table 5.
    \58\ Pacific Comments at 8.
    \59\ Hibernia Atlantic RM-11312 Comments at 6-7; Apollo RM-11312 
Comments at 6-7; Level 3 RM-11312 Comments at 3; Joint Commenters 
RM-11312 Reply Comments at 3-7; Global Crossing Comments at 3; 
Reliance Reply Comments at 5-6; Qwest Reply Comments at 2.
    \60\ Reliance Reply Comments at 6.
    \61\ Verizon Reply Comments at 5.
    \62\ AT&T Reply Comments at 10.
---------------------------------------------------------------------------

    23. Commenters also observe that the Commission has no way to 
monitor active IBCs and therefore cannot enforce compliance with 
regulatory fee requirements.\63\ More stringent reporting requirements, 
generally opposed by private carriers, could eliminate the fee 
avoidance problem and further reduce the per circuit fee.\64\ Pacific 
contends that the total number of active circuits is more than five 
times the number of payment units counted by the Commission.\65\ Such 
significant undercounting of active circuits results in certain 
providers overpaying while others are underpaying.\66\ Qwest observes 
that the Commission's reliance on section 43.82 reports of active 
circuits do not capture the circuits of private carriers.\67\ The 
current practice of assessing fees based on a snapshot of active 
capacity on December 31 encourages operators to take capacity off line 
on December 31st to avoid having such capacity considered active.\68\
---------------------------------------------------------------------------

    \63\ Level 3 Comments at 16. Nonpayment by some operators raises 
the costs for others. Verizon Reply Comments at 5-6.
    \64\ AT&T Reply Comments at 7-8; Qwest Reply Comments at 3, note 
9.
    \65\ Pacific Reply Comments at 3.
    \66\ Pacific Reply Comments at 4.
    \67\ Qwest Reply Comments at 3.
    \68\ Level 3 Comments at 17.
---------------------------------------------------------------------------

    24. We agree with the commenters who argue that our methodology for 
calculating IBC regulatory fees needs to be reformed. We intend to 
resolve this issue within 60 days of adoption of this Order. Our rules 
should treat all providers subject to our regulatory fees in a 
nondiscriminatory and competitively neutral manner. If our rules permit 
certain entities to avoid complying with our regulatory fee 
requirements, the remaining carriers must pay a higher amount to 
compensate for those within the fee

[[Page 50206]]

category who avoid payment. For FY 2008, however, we are using our 
current methodology and the rate set forth in Attachment C.\69\
---------------------------------------------------------------------------

    \69\ $0.93 per active 64 KB circuit.
---------------------------------------------------------------------------

Appendix A--Final Regulatory Flexibility Analysis

    25. As required by the Regulatory Flexibility Act (``RFA''),\1\ 
the Commission prepared an Initial Regulatory Flexibility Analysis 
(``IRFA'') of the possible significant economic impact on small 
entities by the policies and rules proposed in its Notice of 
Proposed Rulemaking.\2\ Written public comments were sought on the 
FY 2008 fees proposal, including comments on the IRFA. This present 
Final Regulatory Flexibility Analysis (``FRFA'') conforms to the 
RFA.\3\
---------------------------------------------------------------------------

    \1\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by 
the Contract With America Advancement Act of 1996, Public Law 104-
121, 110 Stat. 847 (1996) (``CWAAA''). Title II of the CWAAA is the 
Small Business Regulatory Enforcement Fairness Act of 1996 
(``SBREFA'').
    \2\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, MD Docket No. 08-65, Notice of Proposed Rulemaking, (``FY 
2008 NPRM'').
    \3\ 5 U.S.C. 604.
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I. Need for, and Objectives of, the Proposed Rules

    26. This rulemaking proceeding is initiated to amend the 
Schedule of Regulatory Fees in the amount of $312,000,000, the 
amount that Congress has required the Commission to recover. The 
Commission seeks to collect the necessary amount through its revised 
Schedule of Regulatory Fees in the most efficient manner possible 
and without undue public burden.

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

    27. No parties have raised significant issues in response to the 
IRFA.

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

    28. 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.\4\ The 
RFA generally defines the term ``small entity'' as having the same 
meaning as the terms ``small business,'' ``small organization,'' and 
``small governmental jurisdiction.'' \5\ In addition, the term 
``small business'' has the same meaning as the term ``small business 
concern'' under the Small Business Act.\6\ A ``small business 
concern'' is one which: (1) Is independently owned and operated; (2) 
is not dominant in its field of operation; and (3) satisfies any 
additional criteria established by the SBA.\7\
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    \4\ 5 U.S.C. 603(b)(3).
    \5\ 5 U.S.C. 601(6).
    \6\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \7\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    29. Nationwide, there are a total of 22.4 million small 
businesses, according to SBA data.\8\ A ``small organization'' is 
generally ``any not-for-profit enterprise which is independently 
owned and operated and is not dominant in its field.'' \9\ 
Nationwide, as of 2002, there were approximately 1.6 million small 
organizations.\10\ 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.'' \11\ Census Bureau data for 2002 
indicate that there were 87,525 local governmental jurisdictions in 
the United States.\12\ We estimate that, of this total, 84,377 
entities were ``small governmental jurisdictions.'' \13\ 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.
---------------------------------------------------------------------------

    \8\ See SBA, Programs and Services, SBA Pamphlet No. CO-0028, at 
p. 40 (July 2002).
    \9\ 5 U.S.C. 601(4).
    \10\ Independent Sector, The New Nonprofit Almanac & Desk 
Reference (2002).
    \11\ 5 U.S.C. 601(5).
    \12\ U.S. Census Bureau, Statistical Abstract of the United 
States: 2006, Section 8, page 272, Table 415.
    \13\ 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.
---------------------------------------------------------------------------

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

    \14\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) code 517110.
    \15\ FCC, Wireline Competition Bureau, Industry Analysis and 
Technology Division, ``Trends in Telephone Service'' at Table 5.3, 
Page 5-5 (June 2005) (hereinafter ``Trends in Telephone Service'').
---------------------------------------------------------------------------

    31. Competitive Local Exchange Carriers (``CLECs''), Competitive 
Access Providers (``CAPs''), ``Shared-Tenant Service Providers,'' 
and ``Other Local Service Providers.'' Neither the Commission nor 
the SBA has developed a small business size standard specifically 
for these service providers. The appropriate size standard under SBA 
rules is for the category Wired Telecommunications Carriers. Under 
that size standard, such a business is small if it has 1,500 or 
fewer employees.\16\ According to Commission data,\17\ 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.
---------------------------------------------------------------------------

    \16\ 13 CFR 121.201, NAICS code 517110.
    \17\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

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

    \18\ 13 CFR 121.201, NAICS code 517310.
    \19\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

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

    \20\ 13 CFR 121.201, NAICS code 517310.
    \21\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

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

[[Page 50207]]

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

    \22\ 3 CFR 121.201, NAICS code 517110.
    \23\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

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

    \24\ 13 CFR 121.201, NAICS code 517110.
    \25\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

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

    \26\ 13 CFR 121.201, NAICS code 517110.
    \27\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

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

    \28\ 13 CFR 121.201, NAICS code 517310.
    \29\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    38. 800 and 800-Like Service Subscribers.\30\ Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for 800 and 800-like service (``toll free'') 
subscribers. The appropriate size standard under SBA rules is for 
the category Telecommunications Resellers. Under that size standard, 
such a business is small if it has 1,500 or fewer employees.\31\ The 
most reliable source of information regarding the number of these 
service subscribers appears to be data the Commission receives from 
Database Service Management on the 800, 866, 877, and 888 numbers in 
use.\32\ According to our data, at the end of December 2004, the 
number of 800 numbers assigned was 7,540,453; the number of 888 
numbers assigned was 5,947,789; the number of 877 numbers assigned 
was 4,805,568; and the number of 866 numbers assigned was 5,011,291. 
We do not have data specifying the number of these subscribers that 
are 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.
---------------------------------------------------------------------------

    \30\ We include all toll-free number subscribers in this 
category, including those for 888 numbers.
    \31\ 13 CFR 121.201, NAICS code 517310.
    \32\ ``Trends in Telephone Service'' at Tables 18.4, 18.5, 18.6, 
and 18.7.
---------------------------------------------------------------------------

    39. 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.\33\
---------------------------------------------------------------------------

    \33\ 13 CFR 121.201, NAICS codes 517410 and 517910.
---------------------------------------------------------------------------

    40. 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.'' \34\ For this category, 
Census Bureau data for 2002 show that there were a total of 371 
firms that operated for the entire year.\35\ Of this total, 307 
firms had annual receipts of under $10 million, and 26 firms had 
receipts of $10 million to $24,999,999.\36\ Consequently, we 
estimate that the majority of Satellite Telecommunications firms are 
small entities that might be affected by our action.
---------------------------------------------------------------------------

    \34\ U.S. Census Bureau, 2002 NAICS Definitions, ``517410 
Satellite Telecommunications;'' http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
    \35\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 4, NAICS code 517410.
    \36\ Id. An additional 38 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    41. 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.'' \37\ For this 
category, Census Bureau data for 2002 show that there were a total 
of 332 firms that operated for the entire year.\38\ 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.\39\ Consequently, we 
estimate that the majority of Other Telecommunications firms are 
small entities that might be affected by our action.
---------------------------------------------------------------------------

    \37\ U.S. Census Bureau, 2002 NAICS Definitions, ``517910 Other 
Telecommunications''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
    \38\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 4, NAICS code 517910.
    \39\ Id. An additional 14 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    42. Wireless Telecommunications Carriers (except Satellite). 
Since 2007, the Census Bureau has placed wireless firms within this 
new, broad, economic census category.\40\ Prior to that time, such 
firms were within the now-superseded categories of ``Paging'' and 
``Cellular and Other Wireless Telecommunications.'' \41\ Under the 
present and prior categories, the SBA has deemed a wireless business 
to be small if it has 1,500 or fewer employees.\42\ 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.\43\ Of this 
total, 804 firms had employment of 999 or fewer employees, and three 
firms had employment of 1,000 employees or more.\44\ 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.\45\ Of this total, 1,378 firms had employment of 999 or fewer 
employees, and 19 firms had employment of 1,000 employees or 
more.\46\ Thus, we

[[Page 50208]]

estimate that the majority of wireless firms are small.
---------------------------------------------------------------------------

    \40\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210 
Wireless Telecommunications Categories (Except Satellite)''; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
    \41\ 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.
    \42\ 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)).
    \43\ 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)).
    \44\ 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.''
    \45\ 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)).
    \46\ 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.''
---------------------------------------------------------------------------

    43. 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.''\47\ Under the SBA 
size standard, such a business is small if it has average annual 
receipts of $21 million or less.\48\ According to Census Bureau data 
for 1997, there were 2,751 firms in this category that operated for 
the entire year.\49\ 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.\50\ Thus, under this size 
standard, the great majority of firms can be considered small 
entities.
---------------------------------------------------------------------------

    \47\ Office of Management and Budget, North American Industry 
Classification System, page 515 (1997). NAICS code 518111, ``On-Line 
Information Services.''
    \48\ 13 CFR 121.201, NAICS code 518111.
    \49\ 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.
    \50\ Id.
---------------------------------------------------------------------------

    44. 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.'' \51\ 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.\52\ 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 above 
definition, business (control) affiliations \53\ 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.
---------------------------------------------------------------------------

    \51\ U.S. Census Bureau, 2002 NAICS Definitions, ``515120 
Television Broadcasting'' (partial definition); http://www.census.gov/epcd/naics02/def/NDEF515.HTM.
    \52\ 13 CFR 121.201, NAICS code 515120.
    \53\ ``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 
21.103(a)(1).
---------------------------------------------------------------------------

    45. 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.
    46. There are also 2,117 low power television stations 
(``LPTV'').\54\ 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.
---------------------------------------------------------------------------

    \54\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2007.''
---------------------------------------------------------------------------

    47. Radio Broadcasting. The SBA defines a radio broadcast entity 
that has $6 million or less in annual receipts as a small 
business.\55\ Business concerns included in this industry are those 
``primarily engaged in broadcasting aural programs by radio to the 
public.\56\ 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 \57\ are included.\58\ Our 
estimate, therefore likely overstates the number of small businesses 
that might be affected by the rules adopted herein.
---------------------------------------------------------------------------

    \55\ See OMB, North American Industry Classification System: 
United States, 1997, at 509 (1997) (Radio Stations) (NAICS code 
515112).
    \56\ Id.
    \57\ ``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).
    \58\ ``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).
---------------------------------------------------------------------------

    48. 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.\59\
---------------------------------------------------------------------------

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

    49. The Commission estimates that there are approximately 5,618 
FM translators and boosters.\60\ 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.\61\
---------------------------------------------------------------------------

    \60\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 2007.''
    \61\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    50. 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.'' \62\ 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.\63\ 
According to Census Bureau data for 2002, there were a total of 
1,191 firms in this category that operated for the entire year.\64\ 
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.\65\ Thus, under this size standard, the majority of firms 
can be considered small.
---------------------------------------------------------------------------

    \62\ U.S. Census Bureau, 2002 NAICS Definitions, ``517510 Cable 
and Other Program Distribution;'' http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
    \63\ 13 CFR 121.201, NAICS code 517510.
    \64\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the United States: 
2002, NAICS code 517510.
    \65\ Id. An additional 61 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    51. 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.\66\ Industry data indicate that, of 1,076 cable 
operators nationwide, all but eleven are small under this size 
standard.\67\ In addition, under the

[[Page 50209]]

Commission's rules, a ``small system'' is a cable system serving 
15,000 or fewer subscribers.\68\ 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.\69\ Thus, under this second size standard, most cable 
systems are small.
---------------------------------------------------------------------------

    \66\ 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).
    \67\ 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.
    \68\ 47 CFR 76.901(c).
    \69\ 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.
---------------------------------------------------------------------------

    52. 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.'' \70\ 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.\71\ Industry data indicate that, of 1,076 cable 
operators nationwide, all but ten are small under this size 
standard.\72\ 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,\73\ and therefore we are unable to estimate more accurately 
the number of cable system operators that would qualify as small 
under this size standard.
---------------------------------------------------------------------------

    \70\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
    \71\ 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).
    \72\ 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.
    \73\ 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).
---------------------------------------------------------------------------

    53. Open Video Services. Open Video Service (``OVS'') systems 
provide subscription services.\74\ The SBA has created a small 
business size standard for Cable and Other Program Distribution.\75\ 
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.\76\ Affiliates of Residential 
Communications Network, Inc. (``RCN'') received approval to operate 
OVS systems in New York City, Boston, Washington, D.C., and other 
areas. RCN has sufficient revenues to assure 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.
---------------------------------------------------------------------------

    \74\ See 47 U.S.C. 573.
    \75\ 13 CFR 121.201, NAICS code 517510.
    \76\ See http://www.fcc.gov/csb/ovs/csovscer.html.
---------------------------------------------------------------------------

    54. 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.\77\ According to Census Bureau data for 2002, 
there were a total of 1,191 firms in this category that operated for 
the entire year.\78\ 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.\79\ Thus, under this size standard, 
the majority of firms can be considered small.
---------------------------------------------------------------------------

    \77\ 13 CFR 121.201, NAICS code 517510.
    \78\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the United States: 
2002, NAICS code 517510.
    \79\ Id. An additional 61 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    55. 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.\80\ These 
definitions were approved by the SBA.\81\ 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.\82\ 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.\83\
---------------------------------------------------------------------------

    \80\ 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).
    \81\ 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).
    \82\ See ``Multichannel Video Distribution and Data Service 
Auction Closes,'' Public Notice, 19 FCC Rcd 1834 (2004).
    \83\ 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).
---------------------------------------------------------------------------

    56. Amateur Radio Service. These licensees are held by 
individuals in a noncommercial capacity; these licensees are not 
small entities.
    57. 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.\84\ 
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.\85\ 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.
---------------------------------------------------------------------------

    \84\ 13 CFR 121.201, NAICS code 517212.
    \85\ Amendment of the Commission's Rules Concerning Maritime 
Communications, Third Report and Order and Memorandum Opinion and 
Order, 13 FCC Rcd 19853 (1998).
---------------------------------------------------------------------------

    58. 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.\86\ 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

[[Page 50210]]

Implant Communications Service (``MICS''), Low Power Radio Service 
(``LPRS''), and Multi-Use Radio Service (``MURS'').\87\ 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.\88\ 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.
---------------------------------------------------------------------------

    \86\ 47 CFR Part 90.
    \87\ 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.
    \88\ 13 CFR 121.201, NAICS Code 517212.
---------------------------------------------------------------------------

    59. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, 
highway maintenance, and emergency medical services.\89\ There are a 
total of approximately 127,540 licensees in these services. 
Governmental entities \90\ 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.\91\
---------------------------------------------------------------------------

    \89\ With the exception of the special emergency service, these 
services are governed by Subpart B of part 90 of the Commission's 
Rules, 47 CFR 90.15-90.27. The police service includes approximately 
27,000 licensees that serve state, county, and municipal enforcement 
through telephony (voice), telegraphy (code) and teletype and 
facsimile (printed material). The fire radio service includes 
approximately 23,000 licensees comprised of private volunteer or 
professional fire companies as well as units under governmental 
control. The local government service that is presently comprised of 
approximately 41,000 licensees that are state, county, or municipal 
entities that use the radio for official purposes not covered by 
other public safety services. There are approximately 7,000 
licensees within the forestry service which is comprised of 
licensees from state departments of conservation and private forest 
organizations who set up communications networks among fire lookout 
towers and ground crews. The approximately 9,000 state and local 
governments that are licensed to highway maintenance service provide 
emergency and routine communications to aid other public safety 
services to keep main roads safe for vehicular traffic. The 
approximately 1,000 licensees in the Emergency Medical Radio Service 
(``EMRS'') use the 39 channels allocated to this service for 
emergency medical service communications related to the delivery of 
emergency medical treatment. 47 CFR 90.15-90.27. The approximately 
20,000 licensees in the special emergency service include medical 
services, rescue organizations, veterinarians, handicapped persons, 
disaster relief organizations, school buses, beach patrols, 
establishments in isolated areas, communications standby facilities, 
and emergency repair of public communications facilities. 47 CFR 
90.33-90.55.
    \90\ 47 CFR 1.1162.
    \91\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

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

    60. With certain exceptions, the Commission's Schedule of 
Regulatory Fees applies to all Commission licensees and regulatees. 
Most licensees will be required to count the number of licenses or 
call signs authorized, complete and submit an FCC Form 159 
Remittance Advice, and pay a regulatory fee based on the number of 
licenses or call signs.\92\ Interstate telephone service providers 
must compute their annual regulatory fee based on their interstate 
and international end-user revenue using information they already 
supply to the Commission on the FCC Form 499-A, Telecommunications 
Reporting Worksheet, and they must complete and submit the FCC Form 
159. Compliance with the fee schedule will require some licensees to 
tabulate the number of units (e.g., cellular telephones, pagers, 
cable TV subscribers) they have in service, and complete and submit 
an FCC Form 159. Licensees ordinarily will keep a list of the number 
of units they have in service as part of their normal business 
practices. No additional outside professional skills are required to 
complete the FCC Form 159, and it can be completed by the employees 
responsible for an entity's business records.
---------------------------------------------------------------------------

    \92\ The following categories are exempt from the Commission's 
Schedule of Regulatory Fees: Amateur radio licensees (except 
applicants for vanity call signs) and operators in other non-
licensed services (e.g., Personal Radio, part 15, ship and 
aircraft). Governments and non-profit (exempt under section 501(c) 
of the Internal Revenue Code) entities are exempt from payment of 
regulatory fees and need not submit payment. Non-commercial 
educational broadcast licensees are exempt from regulatory fees as 
are licensees of auxiliary broadcast services such as low power 
auxiliary stations, television auxiliary service stations, remote 
pickup stations and aural broadcast auxiliary stations where such 
licenses are used in conjunction with commonly owned non-commercial 
educational stations. Emergency Alert System licenses for auxiliary 
service facilities are also exempt as are Educational Broadband 
Service (EBS) (previously referred to as instructional television 
fixed service licensees). Regulatory fees are automatically waived 
for the licensee of any translator station that: (1) Is not licensed 
to, in whole or in part, and does not have common ownership with, 
the licensee of a commercial broadcast station; (2) does not derive 
income from advertising; and (3) is dependent on subscriptions or 
contributions from members of the community served for support. 
Receive only earth station permittees are exempt from payment of 
regulatory fees. A regulatee will be relieved of its fee payment 
requirement if its total fee due, including all categories of fees 
for which payment is due by the entity, amounts to less than $10.
---------------------------------------------------------------------------

    61. Each licensee must submit the FCC Form 159 to the 
Commission's lockbox bank after computing the number of units 
subject to the fee. Licensees may also file electronically to 
minimize the burden of submitting multiple copies of the FCC Form 
159. Applicants who pay small fees in advance and provide fee 
information as part of their application must use FCC Form 159.
    62. Licensees and regulatees are advised that failure to submit 
the required regulatory fee in a timely manner will subject the 
licensee or regulatee to a late payment penalty of 25 percent in 
addition to the required fee.\93\ If payment is not received, new or 
pending applications may be dismissed, and existing authorizations 
may be subject to rescission.\94\ Further, in accordance with the 
Debt Collection Improvement Act of 1996 (``DCIA''), Public Law 194-
134, federal agencies may bar a person or entity from obtaining a 
federal loan or loan insurance guarantee if that person or entity 
fails to pay a delinquent debt owed to any federal agency.\95\ 
Nonpayment of regulatory fees is a debt owed the United States 
pursuant to 31 U.S.C. 3711 et seq., and the DCIA. Appropriate 
enforcement measures as well as administrative and judicial 
remedies, may be exercised by the Commission. Debts owed to the 
Commission may result in a person or entity being denied a federal 
loan or loan guarantee pending before another federal agency until 
such obligations are paid.\96\
---------------------------------------------------------------------------

    \93\ 47 CFR 1.1164.
    \94\ 47 CFR 1.1164(c).
    \95\ Public Law 104-134, 110 Stat. 1321 (1996).
    \96\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

    63. The Commission's rules currently provide for relief in 
exceptional circumstances. Persons or entities may request a waiver, 
reduction or deferment of payment of the regulatory fee.\97\ 
However, timely submission of the required regulatory fee must 
accompany requests for waivers or reductions. This will avoid any 
late payment penalty if the request is denied. The fee will be 
refunded if the request is granted. In exceptional and compelling 
instances (where payment of the regulatory fee along with the waiver 
or reduction request could result in reduction of service to a 
community or other financial hardship to the licensee), the 
Commission will defer payment in response to a request filed with 
the appropriate supporting documentation.
---------------------------------------------------------------------------

    \97\ 47 CFR 1.1166.
---------------------------------------------------------------------------

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

    64. 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.\98\ In the NPRM, we sought comment on 
alternatives that might simplify

[[Page 50211]]

our fee procedures or otherwise benefit filers, including small 
entities, while remaining consistent with our statutory 
responsibilities in this proceeding.
---------------------------------------------------------------------------

    \98\ 5 U.S.C. 603.
---------------------------------------------------------------------------

    65. Several categories of licensees and regulatees are exempt 
from payment of regulatory fees. Also, waiver procedures provide 
regulatees, including small entity regulatees, relief in exceptional 
circumstances.
    66. Report to Small Business Administration: The Commission will 
send a copy of this Report and Order, including a copy of the FRFA 
to the Chief Counsel for Advocacy of the Small Business 
Administration. The Report and Order and FRFA (or summaries thereof) 
will also be published in the Federal Register.
    67. Report to Congress: The Commission will send a copy of this 
FRFA, along with this Report and Order, in a report to Congress 
pursuant to the Congressional Review Act, 5 U.S.C. 801(a)(1)(A).

Appendix B

List of Commenters

                            Initial Comments
------------------------------------------------------------------------
                  Party                          Abbreviated name
------------------------------------------------------------------------
American Association of Paging Carriers.  AAPC.
AT&T, Inc...............................  AT&T.
Global Crossing North America, Inc......  Global Crossing.
Level 3 Communications, LLC.............  Level 3.
Multicultural Radio Broadcasting          MRB.
 Licensee, LLC and Way Broadcasting
 Licensee, LLC.
Pacific Crossing Limited and PC Landing   Pacific.
 Corp.
PCIA--The Wireless Infrastructure         PCIA.
 Association.
Satellite Industry Association..........  SIA.
Tata Communications (US) Inc............  Tata.
------------------------------------------------------------------------


                             Reply Comments
------------------------------------------------------------------------
                 Party                           Abbreviated name
------------------------------------------------------------------------
AT&T Inc...............................  AT&T.
Brasil Telecom of America, Hibernia      Joint Commenters.
 Atlantic U.S. LLC, Columbus Networks
 USA, Inc., ARCOS-1 USA, Inc., A.SUR
 Net, Inc.
Chisholm Trail Broadcasting Co.........  CTBC.
Enterprise Wireless Alliance...........  Enterprise.
Global Crossing North America, Inc.....  Global Crossing.
Independent Telephone and                ITTA.
 Telecommunications Alliance.
Level 3 Communications, LLC............  Level 3.
Pacific Crossing Limited and PC Landing  Pacific.
 Corp.
Quest Communications International, Inc  Quest.
Reliance Globalcom Limited.............  Reliance.
Telstra Incorporated...................  Telstra.
Verizon................................  Verizon.
------------------------------------------------------------------------


 Parties Filing Initial Comments in Response to VSNL Petition, RM-11312
------------------------------------------------------------------------
                 Party                           Abbreviated name
------------------------------------------------------------------------
Apollo Submarine Cable System, Inc.....  Apollo.
AT&T, Inc..............................  AT&T.
Flag Telecom Group Limited.............  Flag.
Hibernia Atlantic......................  Hibernia.
Level 3 Communications, LLC............  Level 3.
Satellite Industry Association.........  SIA.
------------------------------------------------------------------------


        Parties Filing Reply Comments to VSNL Petition, RM-11312
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Apollo Submarine Cable System, Inc....  Apollo.
ARCOS-1 USA, Inc., et al..............  Joint Commenters.
AT&T, Inc.............................  AT&T.
Level 3 Communications, LLC...........  Level 3.
Version...............................  Version.
Quest Communications Internacional....  Qwest.
VSNL Communications (US) Inc..........  VSNL.
------------------------------------------------------------------------

ATTACHMENT A

Sources of Payment Unit Estimates for FY 2008

    In order to calculate individual service fees for FY 2008, we 
adjusted FY 2007 payment units for each service to more accurately 
reflect expected FY 2008 payment liabilities. We obtained our 
updated estimates through a variety of means. For example, we used 
Commission licensee databases, actual prior year payment records and 
industry and trade association projections when available. The 
databases we consulted include our Universal Licensing System 
(``ULS''), International Bureau Filing System (``IBFS''), 
Consolidated Database System (``CDBS'') and Cable Operations and 
Licensing System (``COALS''), as well as reports generated within 
the Commission such as the Wireline Competition Bureau's Trends in 
Telephone

[[Page 50212]]

Service and the Wireless Telecommunications Bureau's Numbering 
Resource Utilization Forecast.
    We tried to obtain verification for these estimates from 
multiple sources and, in all cases; we compared FY 2008 estimates 
with actual FY 2007 payment units to ensure that our revised 
estimates were reasonable. Where appropriate, we adjusted and/or 
rounded our final estimates to take into consideration the fact that 
certain variables that impact on the number of payment units cannot 
yet be estimated exactly. These include an unknown number of waivers 
and/or exemptions that may occur in FY 2008 and the fact that, in 
many services, the number of actual licensees or station operators 
fluctuates from time to time due to economic, technical, or other 
reasons. When we note, for example, that our estimated FY 2008 
payment units are based on FY 2007 actual payment units, it does not 
necessarily mean that our FY 2008 projection is exactly the same 
number as FY 2007. We have either rounded the FY 2008 number or 
adjusted it slightly to account for these variables.

------------------------------------------------------------------------
         Fee category              Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave,  Based on Wireless Telecommunications
 218-219 MHz, Marine (Ship &    Bureau (``WTB'') projections of new
 Coast), Aviation (Aircraft &   applications and renewals taking into
 Ground), GMRS, Amateur         consideration existing Commission
 Vanity Call Signs, Domestic    licensee databases. Aviation (Aircraft)
 Public Fixed.                  and Marine (Ship) estimates have been
                                adjusted to take into consideration the
                                licensing of portions of these services
                                on a voluntary basis.
CMRS Cellular/Mobile Services  Based on WTB projection reports, and FY
                                07 payment data.
CMRS Messaging Services......  Based on WTB reports, and FY 07 payment
                                data.
AM/FM Radio Stations.........  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2007 payment
                                units.
UHF/VHF Television Stations..  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2007 payment
                                units.
AM/FM/TV Construction Permits  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2007 payment
                                units.
LPTV, Translators and          Based on CDBS data, adjusted for
 Boosters, Class A Television.  exemptions, and actual FY 2007 payment
                                units.
Broadcast Auxiliaries........  Based on actual FY 2007 payment units.
BRS (formerly MDS/MMDS)......  Based on WTB reports and actual FY 2007
                                payment units.
Cable Television Relay         Based on data from Media Bureau's COALS
 Service (``CARS'') Stations.   database and actual FY 2007 payment
                                units.
Cable Television System        Based on publicly available data sources
 Subscribers.                   for estimated subscriber counts and
                                actual FY 2007 payment units.
Interstate Telecommunication   Based on FCC Form 499-Q data for the four
 Service Providers.             quarters of calendar year 2007, the
                                Wireline Competition Bureau projected
                                the amount of calendar year 2007 revenue
                                that will be reported on 2008 FCC Form
                                499-A worksheets in April, 2008.
Earth Stations...............  Based on International Bureau (``IB'')
                                licensing data and actual FY 2007
                                payment units.
Space Stations (GSOs & NGSOs)  Based on IB data reports and actual FY
                                2007 payment units.
International Bearer Circuits  Based on IB reports and actual FY 2007
                                payment units.
International HF Broadcast     Based on IB reports and actual FY 2007
 Stations, International        payment units.
 Public Fixed Radio Service.
------------------------------------------------------------------------

BILLING CODE 6712-01-P

ATTACHMENT B

Calculation of FY 2008 Revenue Requirements and Pro-Rata Fees









[[Page 50213]]

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[[Page 50214]]


[GRAPHIC] [TIFF OMITTED] TR26AU08.018


[[Page 50215]]


[GRAPHIC] [TIFF OMITTED] TR26AU08.019


[[Page 50216]]



ATTACHMENT C

FY 2008 Schedule of Regulatory Fees
[GRAPHIC] [TIFF OMITTED] TR26AU08.020


[[Page 50217]]


[GRAPHIC] [TIFF OMITTED] TR26AU08.021

[GRAPHIC] [TIFF OMITTED] TR26AU08.022

BILLING CODE 6712-01-C

[[Page 50218]]

ATTACHMENT D

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

AM Stations

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

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

FM Stations

    The greater of the horizontal or vertical effective radiated 
power (``ERP'') (kW) and respective height above average terrain 
(``HAAT'') (m) combination was used. Where the antenna height above 
mean sea level (``HAMSL'') was available, it was used in lieu of the 
average HAAT figure to calculate specific HAAT figures for each of 
360 radials under study. Any available directional pattern 
information was applied as well, to produce a radial-specific ERP 
figure. The HAAT and ERP figures were used in conjunction with the 
Field Strength (50-50) propagation curves specified in 47 CFR 73.313 
of the Commission's rules to predict the distance to the principal 
community (70 dBu (decibel above 1 microVolt per meter) or 3.17 mV/
m) contour for each of the 360 radials.\3\ The resulting distance to 
principal community contours were used to form a geographical 
polygon. Population counting was accomplished by determining which 
2000 block centroids were contained in the polygon. The sum of the 
population figures for all enclosed blocks represents the total 
population for the predicted principal community coverage area.
---------------------------------------------------------------------------

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

ATTACHMENT E

FY 2007 Schedule of Regulatory Fees

------------------------------------------------------------------------
                                                       Annual regulatory
                     Fee category                        fee (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).                 35
Microwave (per license) (47 CFR part 101)............                 40
218-219 MHz (Formerly Interactive Video Data Service)                 55
 (per license) (47 CFR part 95)......................
Marine (Ship) (per station) (47 CFR part 80).........                 10
Marine (Coast) (per license) (47 CFR part 80)........                 30
General Mobile Radio Service (per license) (47 CFR                     5
 part 95)............................................
Rural Radio (47 CFR part 22) (previously listed under                 15
 the Land Mobile category)...........................
PLMRS (Shared Use) (per license) (47 CFR part 90)....                 15
Aviation (Aircraft) (per station) (47 CFR part 87)...                  5
Aviation (Ground) (per license) (47 CFR part 87).....                 10
Amateur Vanity Call Signs (per call sign) (47 CFR                   1.17
 part 97)............................................
CMRS Mobile/Cellular Services (per unit) (47 CFR                     .18
 parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20,                 .08
 22, 24 and 90)......................................
Broadband Radio Service (formerly MMDS/ MDS) (per                    325
 license sign) (47 CFR part 21)......................
Local Multipoint Distribution Service (per call sign)                325
 (47 CFR, part 101)..................................
AM Radio Construction Permits........................                400
FM Radio Construction Permits........................                575
TV (47 CFR part 73) VHF Commercial:                    .................
    Markets 1-10.....................................             64,300
    Markets 11-25....................................             46,350
    Markets 26-50....................................             31,075
    Markets 51-100...................................             20,000
    Remaining Markets................................              5,125
    Construction Permits.............................              5,125
TV (47 CFR part 73) UHF Commercial:                    .................
    Markets 1-10.....................................             19,650
    Markets 11-25....................................             19,450
    Markets 26-50....................................             10,800
    Markets 51-100...................................              6,300
    Remaining Markets................................              1,750
    Construction Permits.............................              1,750
Satellite Television Stations (All Markets)..........              1,100
Construction Permits--Satellite Television Stations..                550
Low Power TV, TV/FM Translators & Boosters (47 CFR                   345
 part 74)............................................
Broadcast Auxiliary (47 CFR part 74).................                 10
CARS (47 CFR part 78)................................                185
Cable Television Systems (per subscriber) (47 CFR                    .75
 part 76)............................................
Interstate Telecommunication Service Providers (per               .00266
 revenue dollar).....................................
Earth Stations (47 CFR part 25)......................                185
Space Stations (per operational station in                       109,200
 geostationary orbit) (47 CFR part 25) also includes
 Direct Broadcast Satellite Service (per operational
 station) (47 CFR part 100)..........................
Space Stations (per operational system in non-                   116,475
 geostationary orbit) (47 CFR part 25)...............

[[Page 50219]]

 
International Bearer Circuits (per active 64KB                      1.05
 circuit)............................................
International Public Fixed (per call sign) (47 CFR                 1,875
 part 23)............................................
International (HF) Broadcast (47 CFR part 73)........                795
------------------------------------------------------------------------


                                      FY 2007 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                      FM classes
         Population served           AM class A   AM class B   AM class C   AM class D   FM classes   B, C, C0,
                                                                                         A, B1 & C3    C1 & C2
----------------------------------------------------------------------------------------------------------------
<=25,000..........................         $625         $475         $400         $475         $575         $725
25,001-75,000.....................        1,225          925          600          725        1,150        1,250
75,001-150,000....................        1,825        1,150          800        1,200        1,600        2,300
150,001-500,000...................        2,750        1,950        1,200        1,425        2,475        3,000
500,001-1,200,000.................        3,950        2,975        2,000        2,375        3,900        4,400
1,200,001-3,000,00................        6,075        4,575        3,000        3,800        6,350        7,025
>3,000,000........................        7,275        5,475        3,800        4,750        8,075        9,125
----------------------------------------------------------------------------------------------------------------

Rule Changes

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure.

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

PART 1--PRACTICE AND PROCEDURE

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

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


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


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

----------------------------------------------------------------------------------------------------------------
  Exclusive use services (per
           license)             Fee amount \1\                               Address
----------------------------------------------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz
 and 220 MHz Local, Base
 Station & SMRS) (47 CFR, Part
 90):
    (a) New, Renew/Mod (FCC             $40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     601 & 159).
    (b) New, Renew/Mod                   40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601            40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     & 159).
    (d) Renewal Only                     40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
220 MHz Nationwide:
    (a) New, Renew/Mod (FCC              40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     601 & 159).
    (b) New, Renew/Mod                   40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601            40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     & 159).
    (d) Renewal Only                     40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
2. Microwave (47 CFR Pt. 101)
 (Private):
    (a) New, Renew/Mod (FCC              40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     601 & 159).
    (b) New, Renew/Mod                   40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601            40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     & 159).
    (d) Renewal Only                     40.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
3. 218-219 MHz Service:
    (a) New, Renew/Mod (FCC              60.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     601 & 159).
    (b) New, Renew/Mod                   60.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601            60.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     & 159).
    (d) Renewal Only                     60.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
4. Shared Use Services:
Land Mobile (Frequencies Below
 470 MHz--except 220 MHz)
    (a) New, Renew/Mod (FCC              20.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     601 & 159).
    (b) New, Renew/Mod                   20.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601            20.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     & 159).
    (d) Renewal Only                     20.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
General Mobile Radio Service:
    (a) New, Renew/Mod (FCC               5.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     605 & 159).
    (b) New, Renew/Mod                    5.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     605 & 159).
    (c) Renewal Only (FCC 605             5.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     & 159).
    (d) Renewal Only                      5.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     605 & 159).
Rural Radio (Part 22):
    (a) New, Additional                  20.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     Facility, Major Renew/Mod
     (Electronic Filing) (FCC
     601 & 159).
    (b) Renewal, Minor Renew/            20.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     Mod (Electronic Filing)
     (FCC 601 & 159).
Marine Coast:
    (a) New Renewal/Mod(FCC              35.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     601 & 159).
    (b) New, Renewal/Mod                 35.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601            35.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     & 159).

[[Page 50220]]

 
    (d) Renewal Only                     35.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
Aviation Ground:
    (a) New, Renewal/Mod (FCC            10.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     601 & 159).
    (b) New, Renewal/Mod                 10.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     601 & 159).
    (c) Renewal Only (FCC 601            10.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     & 159).
    (d) Renewal Only                     10.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Only) (FCC
     601 & 159).
Marine Ship:
    (a) New, Renewal/Mod (FCC            10.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     605 & 159).
    (b) New, Renewal/Mod                 10.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     605 & 159).
    (c) Renewal Only (FCC 605            10.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     & 159).
    (d) Renewal Only                     10.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     605 & 159).
Aviation Aircraft:
    (a) New, Renew/Mod (FCC               5.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     605 & 159).
    (b) New, Renew/Mod                    5.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     605 & 159).
    (c) Renewal Only (FCC 605             5.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     & 159).
    (d) Renewal Only                      5.00  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     605 & 159).
5. Amateur Vanity Call Signs:
    (a) Initial or Renew (FCC             1.23  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     605 & 159).
    (b) Initial or Renew                  1.23  FCC, P.O. Box 979097, St. Louis, MO 63197-9000.
     (Electronic Filing) (FCC
     605 & 159).
6. CMRS Mobile Services (per            \2\.17  FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
 unit) (FCC 159).
7. CMRS Messaging Services              \3\.08  FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
 (per unit) (FCC 159).
8. Broadband Radio Service                 295  FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
 (formerly MMDS and MDS).
9. Local Multipoint                        295  FCC, P.O. Box 979084, St. Louis, MO 63197-9000.
 Distribution Service.
----------------------------------------------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire license term. Therefore, the annual fee
  amount shown in this table that is a small fee (categories 1 through 5) must be multiplied by the 5- or 10-
  year license term, as appropriate, to arrive at the total amount of regulatory fees owed. It should be further
  noted that application fees may also apply as detailed in Sec.   1.1102 of this chapter.
\2\ These are standard fees that are to be paid in accordance with Sec.   1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with Sec.   1.1157(b) of this chapter.


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


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

------------------------------------------------------------------------
                                      Fee amount           Address
------------------------------------------------------------------------
                   Radio [AM and FM] (47 CFR, Part 73)
------------------------------------------------------------------------
1. AM Class A:
    <=25,000 population...........            $650  FCC, Radio, P.O. Box
                                                     979084, St. Louis,
                                                     MO 63197-9000.
    25,001-75,000 population......           1,325
    75,001-150,000 population.....           1,975
    150,001-500,000 population....           2,975
    500,001-1,200,000 population..           4,300
    1,200,001-3,000,000 population           6,600
    >3,000,000 population.........           7,925
2. AM Class B:
    <=25,000 population...........             500
    25,001-75,000 population......           1,025
    75,001-150,000 population.....           1,275
    150,001-500,000 population....           2,175
    500,001-1,200,000 population..           3,325
    1,200,001-3,000,000 population           5,100
    >3,000,000 population.........           6,125
3. AM Class C:
    <=25,000 population...........             450
    25,001-75,000 population......             650
    75,001-150,000 population.....             875
    150,001-500,000 population....           1,325
    500,001-1,200,000 population..           2,200
    1,200,001-3,000,000 population           3,300
    >3,000,000 population.........           4,175
4. AM Class D:
    <=25,000 population...........             525
    25,001-75,000 population......             775
    75,001-150,000 population.....           1,300
    150,001-500,000 population....           1,550
    500,001-1,200,000 population..           2,575
    1,200,001-3,000,000 population           4,125
    >3,000,000 population.........           5,150
5. AM Construction Permit.........             415
6. FM Classes A, B1 and C3:
    <=25,000 population...........             600

[[Page 50221]]

 
    25,001-75,000 population......           1,225
    75,001-150,000 population.....           1,675
    150,001-500,000 population....           2,600
    500,001-1,200,000 population..           4,125
    1,200,001-3,000,000 population           6,700
    >3,000,000 population.........           8,550
7. FM Classes B, C, C0, C1 and C2:
    <=25,000 population...........             775
    25,001-75,000 population......           1,375
    75,001-150,000 population.....           2,550
    150,001-500,000 population....           3,325
    500,001-1,200,000 population..           4,900
    1,200,001-3,000,000 population           7,850
    >3,000,000 population.........          10,200
8. FM Construction Permits........             600
------------------------------------------------------------------------
                   TV (47 CFR, Part 73) VHF Commercial
------------------------------------------------------------------------
1. Markets 1 thru 10..............          71,050  FCC, TV Branch, P.O.
                                                     Box 979084, St.
                                                     Louis, MO 63197-
                                                     9000.
2. Markets 11 thru 25.............          53,525
3. Markets 26 thru 50.............          33,525
4. Markets 51 thru 100............          21,025
5. Remaining Markets..............           5,600
6. Construction Permits...........           5,600
------------------------------------------------------------------------
                             UHF Commercial
------------------------------------------------------------------------
1. Markets 1 thru 10..............          21,225  FCC, UHF Commercial,
                                                     P.O. Box 979084,
                                                     St. Louis, MO 63197-
                                                     9000.
2. Markets 11 thru 25.............          19,475
3. Markets 26 thru 50.............          11,900
4. Markets 51 thru 100............           6,800
5. Remaining Markets..............           1,800
6. Construction Permits...........           1,800
------------------------------------------------------------------------
                      Satellite UHF/VHF Commercial
------------------------------------------------------------------------
1. All Markets....................           1,175  FCC Satellite TV,
                                                     P.O. Box 979084,
                                                     St. Louis, MO 63197-
                                                     9000.
2. Construction Permits...........             595
Low Power TV, Class A TV, TV/FM                365  FCC, Low Power, P.O.
 Translator, & TV/FM Booster (47                     Box 979084, St.
 CFR Part 74).                                       Louis, MO 63197-
                                                     9000.
Broadcast Auxiliary...............              10  FCC, Auxiliary, P.O.
                                                     Box 979084, St.
                                                     Louis, MO 63197-
                                                     9000.
------------------------------------------------------------------------


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


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

------------------------------------------------------------------------
                                      Fee amount           Address
------------------------------------------------------------------------
Radio Facilities:
    1. Microwave (Domestic Public           $40.00  FCC, P.O. Box
     Fixed) (Electronic Filing)                      979097, St. Louis,
     (FCC Form 601 & 159).                           MO 63197-9000.
Carriers:
    1. Interstate Telephone                 .00314  FCC, Carriers, P.O.
     Service Providers (per                          Box 979084, St.
     interstate and international                    Louis, MO 63197-
     end-user revenues (see FCC                      9000.
     Form 499-A).
------------------------------------------------------------------------


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


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

------------------------------------------------------------------------
                                      Fee amount           Address
------------------------------------------------------------------------
1. Cable Television Relay Service.            $205  FCC, Cable, P.O. Box
                                                     979084, St. Louis,
                                                     MO 63197-9000.
2. Cable TV System (per                        .80
 subscriber).
------------------------------------------------------------------------


[[Page 50222]]


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


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

------------------------------------------------------------------------
                                      Fee amount           Address
------------------------------------------------------------------------
Radio Facilities:
    1. International (HF)                     $860  FCC, International,
     Broadcast.                                      P.O. Box 979084,
                                                     St. Louis, MO 63197-
                                                     9000.
    2. International Public Fixed.           2,025  FCC, International,
                                                     P.O. Box 979084,
                                                     St. Louis, MO 63197-
                                                     9000.
Space Stations (Geostationary              119,300  FCC, Space Stations,
 Orbit).                                             P.O. Box 979084,
                                                     St. Louis, MO 63197-
                                                     9000.
Space Stations (Non-Geostationary          125,750  FCC, Space Stations,
 Orbit).                                             P.O. Box 979084,
                                                     St. Louis, MO 63197-
                                                     9000.
Earth Stations:
    Transmit/Receive & Transmit                195  FCC, Earth Station,
     Only (per authorization or                      P.O. Box 979084,
     registration).                                  St. Louis, MO 63197-
                                                     9000.
Carriers:
    International Bearer Circuits              .93  FCC, International,
     (per active 64KB circuit or                     P.O. Box 979084,
     equivalent).                                    St. Louis, MO 63197-
                                                     9000.
------------------------------------------------------------------------


Federal Communications Commission.
Marlene Dortch,
Secretary.
 [FR Doc. E8-19899 Filed 8-25-08; 8:45 am]
BILLING CODE 6712-01-P