[Federal Register Volume 74, Number 153 (Tuesday, August 11, 2009)]
[Rules and Regulations]
[Pages 40089-40116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-19104]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 09-65; MD Docket No. 08-65; FCC 09-62]


Assessment and Collection of Regulatory Fees for Fiscal Year 2009

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, we amend our Schedule of Regulatory Fees to 
collect $341,875,000 in regulatory fees for Fiscal Year (FY) 2009, 
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 10, 2009.

FOR FURTHER INFORMATION CONTACT: Daniel Daly, Office of Managing 
Director at (202) 418-1832, or Roland Helvajian, Office of Managing 
Director at (202) 418-0444.

SUPPLEMENTARY INFORMATION: 

I. Introduction

    1. In this Report and Order we conclude the Assessment and 
Collection of Regulatory Fees for Fiscal Year (FY) 2009 proceeding \1\ 
to collect $341,875,000 in regulatory fees for FY 2009, 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.\2\ The annual regulatory fee amount to be collected is 
established each year in the Commission's annual appropriations act 
which is adopted by Congress and signed by the President and which 
funds the Commission.\3\ In this annual regulatory fee proceeding, we 
retain many of 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 2009 in order 
to collect the required amount by the end of our fiscal year.
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    \1\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2009, MD Docket No. 09-65, Notice of Proposed Rulemaking and 
Order, 24 FCC Rcd 5966 (2009) (FY 2009 NPRM and Order).
    \2\ 47 U.S.C. 159(a).
    \3\ See Omnibus Appropriations Act, 2009, P.L. 111-8, for the FY 
2009 appropriations act language for the Commission establishing the 
amount of $341,875,000 of offsetting collections to be assessed and 
collected by the Commission pursuant to section 9 of the 
Communications Act.
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II. Report and Order

    2. On May 14, 2009, we released a Notice of Proposed Rulemaking and 
Order (FY 2009 NPRM and Order, 74 FR 26329, June 2, 2009) seeking 
comment on regulatory fee issues for FY 2009.\4\ 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 2009 NPRM and Order, we proposed to largely retain the section 9 
regulatory fee methodology used in the prior fiscal year except as 
discussed below. We received nine comments and two reply comments.\5\ 
We address the issues raised in our FY 2009 NPRM and Order below.
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    \4\ See FY 2009 NPRM and Order.
    \5\ See Appendix A for the list of commenters and abbreviated 
names.
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A. FY 2009 Regulatory Fee Assessment Methodology--Development of FY 
2009 Regulatory Fees

    3. We note at the outset that in the context of their comments on 
the FY 2009 regulatory fee proceeding, commenters \6\ discussed the 
Commission's Further Notice of Proposed Rulemaking, which accompanied 
the FY 2008 regulatory fee Report and Order (FY 2008 Report and Order, 
73 FR 50285, August 26, 2008).\7\ Through that proceeding the

[[Page 40090]]

Commission sought comment on how it could comprehensively make the 
Commission's regulatory fee process more equitable.\8\ In the FY 2009 
NPRM and Order, we adopted two proposals raised in the Further Notice 
of Proposed Rulemaking in the FY 2008 Report and Order.\9\ The other 
outstanding matters stemming from the Further Notice of Proposed 
Rulemaking in the FY 2008 Report and Order will be decided at a later 
time in a separate Report and Order.\10\
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    \6\ See comments from American Association of Paging Carriers 
(AAPC); Coalition of Canadian-Based Service Providers (Coalition); 
Independent Telephone and Telecommunications Alliance (ITTA); and 
United States Telecom Association (USTelecom).
    \7\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, MD Docket No. 08-65, Report and Order and Further Notice 
of Proposed Rulemaking, 24 FCC Rcd 6389 (2008) (FY 2008 Report and 
Order).
    \8\ FY 2008 Report and Order at paragraph 2.
    \9\ FY 2009 NPRM and Order at paragraphs 2-5; FY 2008 Report and 
Order at paragraphs 55 and 56.
    \10\ In an effort to explore how the Commission could 
comprehensively make the regulatory fee process more equitable, the 
Commission sought and received comments during FY 2008 about the 
regulatory fee process, the calculation of regulatory fees, and 
issues relating to specific categories of fees. FY 2008 Report and 
Order at paragraphs 25-58. The comprehensive regulatory fee revision 
issues raised in the FY 2008 Further Notice of Proposed Rulemaking 
remain outstanding at this time.
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    4. In our FY 2009 regulatory fee assessment, we will use the same 
section 9 regulatory fee assessment methodology adopted for FY 2008. 
Each fiscal year, the Commission proportionally allocates the total 
amount that must be collected via section 9 regulatory fees. The 
results of our FY 2009 regulatory fee assessment methodology (including 
a comparison to the prior year's results) are contained in Appendix B. 
To collect the $341,875,000 required by Congress, we adjust the FY 2008 
amount upward by approximately 9.6 percent and allocate this amount 
across the various fee categories. Consistent with past practice, we 
then divide the FY 2009 amount by the number of payment units in each 
fee category to determine the unit fee.\11\ 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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    \11\ 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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    5. In calculating the FY 2009 regulatory fees listed in Appendix C, 
we further adjusted the FY 2008 list of payment units (see Appendix D) 
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.\12\ 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 2009, and fluctuations in the number 
of licensees or station operators due to economic, technical, or other 
reasons. Therefore, our estimated FY 2009 payment units are based on FY 
2008 actual payment units, but the number may have been rounded or 
adjusted slightly to account for these variables.
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    \12\ The databases we consulted are the following: 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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1. AM and FM Radio Stations
    6. As in previous years, we consider additional factors in 
determining regulatory fees for AM and FM radio stations. We did not 
receive any comments on the use of these factors. 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 Appendix E. Consequently, the population served, as well as 
the class and type of service (AM or FM), will continue to determine 
the regulatory fee amount to be paid.\13\
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    \13\ In addition, beginning in FY 2005, we established a 
procedure by which we set regulatory fees for AM and FM radio and 
VHF and UHF television Construction Permits each year at an amount 
no higher than the lowest regulatory fee in that respective service 
category. For example, the regulatory fee for a Construction Permit 
for an AM radio station will never be more than the regulatory fee 
for an AM Class C radio station serving a population of less than 
25,000.
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2. Submarine Cable Methodology
    7. In a Second Report and Order (Submarine Cable Order, 24 FCC Rcd) 
released on March 24, 2009, the Commission adopted a new submarine 
cable bearer circuit methodology that assessed regulatory fees on a per 
cable landing license basis, with higher fees for larger submarine 
cable systems and lower fees for smaller systems, without 
distinguishing between common carriers and non-common carriers.\14\ For 
the other categories of international bearer circuits--common carrier 
and non-common carrier satellite facilities and common carrier 
terrestrial facilities--the Submarine Cable Order retained the existing 
regulatory fee methodology of assessing fees on a per 64 kbps circuit 
basis.
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    \14\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, Second Report and Order, 24 FCC Rcd 4208, paragraph 1 
(May 12, 2009) (Submarine Cable Order).
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    8. By way of brief background, in the proposed fee rates for 
submarine cable systems in the FY 2009 NPRM and Order,\15\ the 
Commission allocated the total FY 2009 bearer circuit expected revenue 
into two revenue components: a submarine cable revenue component (87.6 
percent) and a satellite/terrestrial revenue component (12.4 percent) 
using the Consensus Proposal allocation adopted by the Commission in 
the Submarine Cable Order.\16\ According to the Consensus Proposal, 
this allocation of 87.6 percent (submarine cable) and 12.4 percent 
(satellite/terrestrial) was calculated by determining the revenue 
obligations of submarine cable systems with the revenue obligations of 
the satellite and terrestrial facilities using the FY 2008 revenue 
requirement as its basis.\17\ For calculating these new bearer circuit 
fees, we will use these allocation percentages of 87.6 percent 
(submarine cable) and 12.4 percent (satellite and terrestrial) as a 
starting point. Consistent with the Commission's annual process of 
updating its schedule of regulatory fees based on the most recent data, 
we will re-examine the allocation percentages described above on an 
annual basis as the starting point for applying the new submarine cable 
methodology.
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    \15\ See FY 2009 NPRM and Order at Appendix A.
    \16\ See Submarine Cable Order at paragraphs 1 and 6.
    \17\ Id. at 6.
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    9. After the adoption of the Submarine Cable Order, the Commission 
notified Congress on April 15, 2009 per section 9(b)(4)(B) of the 
Communications Act of the methodology change.\18\ The pending 90-day 
congressional notification period expired on July 15, 2009. The new 
bearer circuit methodology is effective.

[[Page 40091]]

The FY 2009 regulatory fee rates for submarine cable systems included 
in the FY 2009 Schedule of Regulatory Fees in Appendix C reflect the 
Commission's adoption of the methodology in the Submarine Cable Order.
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    \18\ 47 U.S.C. 159(b)(4)(B); Letter concerning permitted 
amendment from Office of Managing Director, Federal Communications 
Commission to Chair and Ranking Members of U.S. House of 
Representatives' Committees on Energy and Commerce and 
Appropriations and applicable Subcommittees and to Chair and Ranking 
Members of the United States Senate Committees on Commerce, Science, 
and Transportation and Appropriations and applicable Subcommittees 
(sent April 15, 2009).
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3. Elimination of Regulatory Fee Categories for International Public 
Fixed Radio and International High Frequency Broadcast Stations
    10. In our FY 2008 Report and Order, we sought comment on 
eliminating several categories of services from our schedule of 
regulatory fees.\19\ The Commission received no comments on those 
proposals. In the FY 2009 NPRM and Order, the Commission adopted an 
Order which eliminated the regulatory fee categories for International 
Public Fixed Radio and International High Frequency Broadcast 
Stations.\20\
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    \19\ FY 2008 Report and Order at paragraphs 55 and 56.
    \20\ FY 2009 NPRM and Order at paragraph 5.
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    11. After the adoption of the FY 2009 NPRM and Order, the 
Commission notified Congress on May 20, 2009 per section 9(b)(4)(B) of 
the Communications Act of the methodology change.\21\ After the pending 
90-day congressional notification period expires, i.e., after August 
18, 2009, the elimination of these two regulatory fee categories will 
become effective. The FY 2009 Schedule of Regulatory Fees in Appendix C 
reflects the elimination of these two categories based on the 
Commission's action in the FY 2009 NPRM and Order.
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    \21\ 47 U.S.C. 159(b)(4)(B); Letter concerning permitted 
amendment from Office of Managing Director, Federal Communications 
Commission to Chair and Ranking Members of U.S. House of 
Representatives' Committees on Energy and Commerce and 
Appropriations and applicable Subcommittees and to Chair and Ranking 
Members of the United States Senate Committees on Commerce, Science, 
and Transportation and Appropriations and applicable Subcommittees 
(sent May 20, 2009).
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B. Regulatory Fee Obligations for Digital Broadcasters

    12. In our FY 2009 NPRM and Order, we reiterated that consistent 
with past years, we would not assess FY 2009 regulatory fees for both 
digital and analog licenses from a licensee in the process of 
transitioning from analog to digital.\22\ Furthermore, we stated that 
stations that were broadcasting in both analog and digital on October 
1, 2008 would be assessed FY 2009 regulatory fees for their analog 
license only.\23\ Also consistent with our past practice, we noted that 
stations that were broadcasting in digital only on October 1, 2008 
would not be assessed regulatory fees for their digital license for FY 
2009.\24\
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    \22\ FY 2009 NPRM and Order at paragraph 10.
    \23\ Id.
    \24\ Id.
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    13. In our FY 2009 NPRM and Order, we proposed that beginning in FY 
2010, we plan to collect regulatory fees from digital broadcasters, and 
we sought comment on this plan to collect regulatory fees on full-power 
digital broadcast stations beginning with FY 2010, i.e., the fiscal 
year after the nation-wide transition date on June 12, 2009.\25\ We 
received no comments on this issue. Our goal is to ensure that digital 
broadcasters will pay their share of regulatory fees in the years after 
the nation-wide transition is complete. Therefore, in FY 2010, we will 
collect regulatory fees from digital broadcasters. During the FY 2010 
regulatory fee process, we will again remind digital broadcasters of 
their regulatory fee obligations.
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    \25\ Id. at paragraph 11.
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C. Commercial Mobile Radio Service Messaging Service

    14. Commercial Mobile Radio Service (CMRS) Messaging Service, which 
replaced the CMRS One-Way Paging fee category in 1997, includes all 
narrowband services.\26\ In the FY 2009 NPRM and Order, we proposed 
maintaining the messaging service regulatory fee at $0.08 per 
subscriber, the rate first established for this service in FY 2002.\27\
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    \26\ 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, paragraph 60 (1997) (FY 1997 Report and Order).
    \27\ FY 2009 NPRM and Order at paragraph 12.
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    15. One commenter, AAPC, addressed this issue.\28\ AAPC submits 
that maintaining the fee at the existing level is the minimum 
reasonable and appropriate action under the prevailing circumstances in 
the paging industry.\29\ We conclude that for FY 2009 we should 
continue this regulatory fee rate at $0.08 per subscriber due to the 
declining subscriber base in this industry.\30\
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    \28\ AAPC Comments at 1-4.
    \29\ Id. at 2.
    \30\ The subscriber base in the paging industry declined 83 
percent from 40.8 million to 6.95 million, from FY 1997 to FY 2008, 
according to FY 2008 collection data as of September 30, 2008.
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D. International Bearer Circuits

1. Terrestrial Non-Common Carrier Circuits
    16. As part of our comprehensive effort to review our regulatory 
fees process for possible ways to make the process more equitable, we 
sought comment in our FY 2009 NPRM and Order on whether, beginning in 
FY 2010, carriers providing international service over terrestrial 
circuits should also pay international bearer circuit (IBC) fees on 
non-common carrier circuits.\31\ Five parties filed comments or reply 
comments. In joint comments, Bestel USA Inc., Hibernia Atlantic US LLC, 
and Level 3 Communications LLC (Joint Commenters) argue that carriers 
should not be assessed regulatory fees on their non-common carrier 
circuits, in part, because the Commission does not authorize those 
services or collect data on them, and thus there is no burden on the 
Commission to regulate these services.\32\ The Coalition of Canadian-
Based Service Providers (Coalition) echoes these arguments, contending 
that international terrestrial fiber-based non-common carriers are not 
regulated by the Commission, they do not hold 214 licenses, and are not 
subject to enforcement and policymaking activities.\33\ Sprint Nextel 
(Sprint) opposes the imposition of regulatory fees on terrestrial non-
common carrier bearer circuits that are used exclusively for providing 
Internet/IP services.\34\ AT&T, on the other hand, argues that in the 
interest of providing equitable treatment of all providers, per circuit 
fees should be levied on non-common carrier terrestrial circuits.\35\ 
Verizon and Verizon Wireless agree with Joint Commenters, the Coalition 
and Sprint, that non-common carrier services over terrestrial 
international circuits is inherently different from such services over 
satellite circuits and submarine cable systems.\36\ In its reply 
comments, AT&T argues that non-common carrier terrestrial circuits 
currently receive an unfair cost advantage because they are not 
assessed a regulatory fee, and it is possible that common carriers will 
increasingly market capacity on a non-common carrier basis to avoid 
paying these fees, thereby increasing the fees for the smaller pool of 
remaining common carrier circuits.\37\
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    \31\ FY 2009 NPRM and Order at paragraph 13-14.
    \32\ Bestel USA, Hibernia Atlantic US, and Level 3 
Communications comments at 3-4.
    \33\ Coalition comments at 3, 8-9.
    \34\ Sprint comments at 1.
    \35\ AT&T comments at 1.
    \36\ Verizon and Verizon Wireless comments at 2-3.
    \37\ AT&T reply comments at 1-2.
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    17. The commenters present a number of competing arguments on 
whether carriers should be assessed regulatory fees for their 
terrestrial non-common carrier circuits. In the FY 2009 NRPM and Order, 
we sought comment on whether we should make such an assessment starting 
in FY 2010, at the earliest. Given the complexity of the

[[Page 40092]]

legal, policy and equity issues involved, we decline to make a 
determination at this time. We may further consider this issue in the 
future.

E. Administrative and Operational Issues

    18. In our FY 2009 NPRM and Order, we sought general comment on 
ways to improve our procedures in collecting annual section 9 
regulatory fees.\38\ We received comments from the American Cable 
Association (ACA) regarding the fee notification of CARS (Cable 
Television Relay Service) and Earth Station licensees, and one specific 
comment from AT&T to send annual notification assessments to licensees 
of submarine cable systems. We received no reply comments relating to 
our collection procedures and processes. We will address these comments 
in the appropriate paragraphs below.
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    \38\ FY 2009 NPRM and Order at paragraph 15.
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1. Mandatory Use of Fee Filer
    19. In our FY 2009 NPRM and Order, we proposed to institute a 
mandatory filing requirement using the Commission's electronic filing 
and payment system (also known as Fee Filer).\39\ Fee Filer is not a 
new system at the Commission, and although we have strongly encouraged 
its use for many years for the filing and payment of annual regulatory 
fees, we proposed this year to make its use mandatory. We received no 
comments and no reply comments regarding this matter.
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    \39\ FY 2009 NPRM and Order at paragraph 16.
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    20. For the reasons discussed in the FY 2009 NPRM and Order, we 
conclude that beginning in the FY 2009 regulatory fee cycle, licensees 
filing their annual regulatory fee payments must begin the process by 
entering the Commission's Fee Filer system with a valid FRN and 
password. Therefore, it is very important for licensees to have a 
current and valid FRN address on file in the Commission's Registration 
System (CORES). Licensees will also need to have their FRN passwords 
available when entering the Commission's CORES registration system. In 
some instances, it will be necessary to use a specific FRN and password 
that is linked to a particular regulatory fee bill. Going forward, only 
Form 159-E documents generated from Fee Filer will be permitted when 
sending in a regulatory fee payment to U.S. Bank. By requiring 
licensees to use Fee Filer to begin the regulatory fee payment process, 
errors resulting from illegible handwriting on hardcopy Form 159's will 
be greatly reduced, and we will be able to create an electronic record 
of licensee payment attributes that are more easily traced than those 
payments that are simply mailed in with a hardcopy Form 159.
    21. There are many benefits to licensees for using the Commission's 
electronic filing and payment system: (1) Expeditious submission of 
payment; (2) no postage or courier costs (when paid through Fee Filer); 
(3) fewer errors caused by illegible handwriting or payments submitted 
without an FRN number or the appropriate data attributes (e.g., payers 
will avoid receiving delinquency notices because of payment submission 
errors); (4) improved recordkeeping and payment reconciliation; (5) 
reduced administrative burden on both licensees and on Commission staff 
in processing regulatory fee payments; (6) less expensive than a wire 
transfer; and (7) a reduced burden of preparing, mailing, and storing 
paper documents.
    22. We realize that not all licensees are able to pay their 
regulatory fees using Fee Filer. In some instances, the regulatory fee 
payment may be greater than $99,999, in which case, the use of a credit 
card will be limited by restrictions placed on it by the U.S. Treasury. 
For those licensees who choose to pay by check or money order or pay 
via wire transfer, a voucher Form 159-E will be needed before mailing 
the check to the Commission's lockbox bank, or in the case of a wire 
transfer, faxing the Form 159-E to the lockbox bank. For those 
licensees choosing to make a payment using their bank account (also 
known as an Automated Clearing House (``ACH'') payment), the submission 
of Form 159-E to the lockbox bank will not be necessary. In such 
situations, regardless of whether a payment is made online or submitted 
with a check or money order along with a Form 159-E, the Commission's 
requirement now is to begin the process of paying regulatory fees by 
starting with Fee Filer. The primary difference is that by starting the 
payment process using Fee Filer, even if the payment is then mailed to 
the Commission's lockbox bank, a voucher Form 159-E will be generated 
that will have important electronic attributes associated with this 
regulatory fee payment.
    23. The mandatory use of Fee Filer to begin the regulatory fee 
payment process is an important step forward in providing our licensees 
with a paperless, electronic environment to use when conducting 
business with the Commission. This practice of using Fee Filer will not 
only enable the Commission to process regulatory fee payments more 
efficiently and accurately, it will also benefit licensees by reducing 
the administrative burden of filing and paying annual regulatory fees. 
Because no comments or reply comments were submitted to the contrary 
regarding this issue, we will institute a mandatory use of Fee Filer to 
begin the process of filing to pay annual regulatory fees. Beginning in 
the FY 2009 regulatory fee cycle, only Form 159-E documents generated 
from Fee Filer will be permitted when sending in a regulatory fee 
payment to U.S. Bank.
2. Notification and Collection of Regulatory Fees
a. Pre-Bills
    24. In prior years, the Commission mailed pre-bills via surface 
mail to licensees in select regulatory fee categories: Interstate 
telecommunications service providers (ITSPs), Geostationary (GSO) and 
Non-Geostationary (NGSO) satellite space station licensees,\40\ holders 
of Cable Television Relay Service (CARS) licenses, and Earth Station 
licensees.\41\ The remaining regulatees did not receive pre-bills. In 
our FY 2009 NPRM and Order, we proposed to show the attributes of these 
pre-bills on Fee Filer, but not actually mail them out to licensees via 
surface mail.\42\ We received one general comment from the American 
Cable Association (ACA), and one specific comment from AT&T. We 
received no reply comments.
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    \40\ Geostationary orbit space station (GSO) licensees received 
regulatory fee pre-bills for satellites that (1) were licensed by 
the Commission and operational on or before October 1 of the 
respective fiscal year; and (2) were not co-located with and 
technically identical to another operational satellite on that date 
(i.e., were not functioning as a spare satellite). Non-geostationary 
orbit space station (NGSO) licensees received regulatory fee pre-
bills for systems that were licensed by the Commission and 
operational on or before October 1 of the respective fiscal year.
    \41\ An assessment is a proposed statement of the amount of 
regulatory fees owed by an entity to the Commission (or proposed 
subscriber count to be ascribed for purposes of setting the entity's 
regulatory fee) but it is not entered into the Commission's 
accounting system as a current debt. A pre-bill is considered an 
account receivable in the Commission's accounting system. Pre-bills 
reflect the amount owed and have a payment due date of the last day 
of the regulatory fee payment window. Consequently, if a pre-bill is 
not paid by the due date, it becomes delinquent and is subject to 
our debt collection procedures. See also 47 CFR 1.1161(c), 
1.1164(f)(5), and 1.1910.
    \42\ See FY 2009 NPRM and Order at paragraph 20.
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    25. The ACA contends that because there are many small cable 
operators and independent earth station licensees, the Commission 
should provide notice to each licensee via e-mail when the pre-bill 
information for CARS and Earth Stations is available for viewing in Fee 
Filer.\43\ ACA understands why the

[[Page 40093]]

Commission has decided to discontinue mailing these pre-bills, but 
contends that the Commission should consider e-mail as an alternate way 
of notifying small operators that their bill information is available 
in Fee Filer.\44\ ACA also contends that if the Commission decides to 
cease mailing pre-bill notices, it is likely that many small operators 
will be unaware of this change, and as a result, some operators may 
inadvertently miss the filing deadline while waiting for receipt of the 
pre-bill.\45\ For this reason, ACA suggests that cable operators with 
5,000 or fewer subscribers should receive a 180-day grace period for FY 
2009 CARS and Earth Station regulatory fee payments.\46\ In its 
comments, AT&T recommends that the Commission send a separate annual 
fee assessment notification to each submarine cable licensee informing 
them of their obligation to pay submarine cable regulatory fees.\47\
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    \43\ American Cable Association (ACA) comments at 4.
    \44\ Id. at 4.
    \45\ Id. at 5.
    \46\ Id.
    \47\ AT&T comments at 3.
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    26. The Commission does not maintain a systematic listing of e-mail 
addresses for individual CARS and Earth Station licensees, and so, 
attempting to use such a listing to contact small cable operators and 
independent earth station licensees may not prove useful. However, 
because all pre-bills will be loaded into Fee Filer, once Fee Filer 
becomes operational, this will be the signal by which licensees can 
view their pre-bill information online. As we have for many years, the 
Commission will post a Public Notice online announcing the date Fee 
Filer will become operational, and once this Notice is published, 
licensees will know that they can view their pre-bill information in 
Fee Filer. Having provided this Notice to licensees and having urged 
licensees to use Fee Filer for several years, the Commission will not 
provide a 180-day grace period for regulatory fee payments as ACA 
suggests.
    27. In its comments, AT&T suggests that the Commission notify 
licensees of their obligation to pay submarine cable system regulatory 
fees. AT&T contends that because there is a new regulatory fee 
methodology for submarine cable fees, and there can be multiple license 
holders for each submarine cable system, the Commission should try to 
contact the license holders of submarine cable systems to inform them 
of their obligation to pay submarine cable regulatory fees.\48\ In the 
Submarine Cable Order,\49\ the Commission did implement a regulatory 
fee methodology change for submarine cable systems. Although there may 
be multiple license holders for each submarine cable system, the total 
number of license holders is small and information available for each 
license holder is relatively accurate. However, rather than sending 
individual notification assessments to each submarine cable licensee, 
as AT&T suggests, the Commission in FY 2009 will publish a Public 
Notice that identifies the license holders of each submarine cable 
system. This Public Notice will serve as notice to all submarine cable 
license holders of their FY 2009 obligation to pay regulatory fees 
under the new methodology.
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    \48\ Id. at 3.
    \49\ See Submarine Cable Order at paragraph 1.
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III. Procedural Matters

    28. Included below are procedural items as well as our current 
payment and collection methods that we have revised over the past 
several years to expedite the processing of regulatory fee payments. We 
include these payments and collection procedures here as a useful way 
to remind regulatory fee payers and the public about these aspects of 
the annual regulatory fee collection process. For FY 2009, we have not 
changed our procedures with the exception of Pre-Bills, which as 
discussed above the Commission will no longer be sending out via 
surface mail. We also discuss at the outset a procedural matter about 
waivers raised by a commenter.
    29. In its comments, the Named State Broadcasters Associations 
(State Associations) suggested that the Commission's standard for 
deciding whether to grant a waiver for financial hardship should be 
revised to allow greater flexibility.\50\ The State Associations 
commented that the current recession is crippling stations 
nationwide.\51\ Furthermore, the State Associations commented that: 
``Especially during this period of deep recession, if a station shows 
the Commission (i) that its revenues are down substantially and that it 
has had to cut expenses, including employee layoffs, furloughs, and 
salary reductions in order to keep the station operating, or (ii) that 
it has broken, or is close to breaking, loan covenants or is otherwise 
in default of its financing, or (iii) that it is on the brink of some 
form of foreclosure or bankruptcy, a waiver of the FY 2009 regulatory 
fee payment requirement should be granted.'' \52\
---------------------------------------------------------------------------

    \50\ State Associations at 6-7.
    \51\ Id. at 7.
    \52\ Id.
---------------------------------------------------------------------------

    30. We decline to adopt the State Associations' proposals. In 
establishing the regulatory fee program, the Commission recognized that 
in certain instances payment of a regulatory fee may impose an undue 
financial hardship upon a licensee. The Commission therefore decided to 
grant waivers or reductions of its regulatory fees in those instances 
where a ``petitioner presents a compelling case of financial 
hardship.'' \53\ Under the current standard employed by the Commission, 
regulatees can establish financial hardship by submitting: 
``Information such as a balance sheet and profit and loss statement 
(audited, if available), a cash flow projection * * * (with an 
explanation of how calculated), a list of their officers and their 
individual compensation, together with a list of their highest paid 
employees, other than officers, and the amount of their compensation, 
or similar information.'' \54\ The Commission also accepts as evidence 
of financial hardship that licensees' stations are bankrupt, undergoing 
Chapter 11 reorganization, or in receivership.\55\ Furthermore, the 
Commission will accept evidence that a broadcast station is not 
broadcasting (dark) as evidence of financial hardship.\56\ The current 
financial hardship standards have proven useful as bright line tests 
that can be administered predictably. The Commission does not intend to 
change these standards at this time and notes that various groups of 
licensees are impacted by the broader economy from year to year. 
Modifying our financial hardship waiver standards to accommodate 
fluctuating economic changes and a potentially limitless variety of 
different financial showings would not assure that waivers are granted 
predictably, fairly, and efficiently, and would therefore not be in the 
public interest.
---------------------------------------------------------------------------

    \53\ See Implementation of Section 9 of the Communications Act, 
9 FCC Rcd 5333, 5346 (1994), recon. granted, 10 FCC Rcd 12759 (1995) 
(Implementation of Section 9 Order).
    \54\ Implementation of Section 9 Order, 10 FCC Rcd at 12762, 
paragraph 13.
    \55\ Id. at 12762, paragraph 14.
    \56\ Id. at 12762, paragraph 15.
---------------------------------------------------------------------------

A. Public Notices and Fact Sheets

    31. Each year we post public notices and fact sheets pertaining to 
regulatory fees on our web site. These documents contain information 
about the payment due date and the regulatory fee payment procedures. 
We will continue to post

[[Page 40094]]

this information on http://www.fcc.gov/fees/regfees.html, but as in 
previous years we will not send out public notices and fact sheets to 
regulatees en masse.

B. Assessment Notifications

1. Media Services Licensees
    32. Beginning in FY 2003, we sent fee assessment notifications via 
surface mail to media services entities on a per-facility basis.\57\ 
The notifications provided the assessed fee amount for the facility in 
question, as well as the data attributes that determined the fee 
amount. We have since refined this initiative with improved 
results.\58\ Consistent with procedures used last year, we will 
continue our notification assessment initiative in FY 2009 and mail 
media assessment notifications to licensees at their primary record of 
contact populated in our Consolidated Database System (CDBS), and to a 
secondary record of contact, if available. We again will issue fee 
assessments for AM and FM Radio Stations, AM and FM Construction 
Permits, FM Translators/Boosters, VHF and UHF Television Stations, VHF 
and UHF Television Construction Permits, Satellite Television Stations, 
Low Power Television (LPTV) Stations and LPTV Translators/Boosters, to 
the extent that applicants, permittees and licensees of such facilities 
do not qualify as government entities or non-profit entities. Fee 
assessments have not been issued for broadcast auxiliary stations in 
prior years, nor will they be issued in FY 2009. We will also continue 
to make the Commission-authorized web site available to licensees so 
that they can update or correct any information regarding their 
facilities and their fee-exempt status.\59\
---------------------------------------------------------------------------

    \57\ As stated previously at footnote 42, an assessment is a 
proposed statement of the amount of regulatory fees owed by an 
entity to the Commission (or proposed subscriber count to be 
ascribed for purposes of setting the entity's regulatory fee) but it 
is not entered into the Commission's accounting system as a current 
debt.
    \58\ Some of those refinements have been to provide licensees 
with a Commission-authorized web site to update or correct any 
information concerning their facilities, and to amend their fee-
exempt status, if need be. Also, our notifications now provide 
licensees with a telephone number to call in the event that they 
need customer assistance. The notifications themselves have been 
refined so that licensees of fewer than four facilities receive 
individual fee assessment postcards for their facilities; whereas 
licensees of four or more facilities now receive a single assessment 
letter that lists all of their facilities and the associated 
regulatory fee obligation for each facility.
    \59\ If there is a change of address for the facility, it is the 
licensee's responsibility to make the address change in the Media 
Bureau's CDBS system, as well as in the Commission's Registration 
System (CORES). The Commission-authorized web site for media 
services licensees is http://www.fccfees.com.
---------------------------------------------------------------------------

    33. Although the Commission will continue to mail media assessment 
notifications, licensees (including media services) will be required to 
use Fee Filer as the first step to paying their regulatory fee 
obligations. The notification assessments are primarily intended to 
provide licensees with media data attributes and should not be 
considered a substitute to using Fee Filer as the first step in filing 
and paying regulatory fees. As explained previously in paragraphs 19 
through 23, licensees must first log onto the Commission's Fee Filer 
system to begin the process of filing and paying their regulatory fees, 
but once in Fee Filer, licensees may pay by check or money order, 
credit card, wire transfer, or by ACH. To pay by check, money order, or 
wire transfer, licensees must log onto Fee Filer and generate a Form 
159-E before mailing in their payment along with Form 159-E.
2. CMRS Cellular and Mobile Services Assessments
    34. As we have done in prior years, we will continue to mail an 
assessment letter to CMRS providers using data from the Numbering 
Resource Utilization Forecast (NRUF) report that is based on 
``assigned'' number counts that have been adjusted for porting to net 
Type 0 ports (``in'' and ``out'').\60\ This letter will include a 
listing of the carrier's Operating Company Numbers (OCNs) upon which 
the assessment is based.\61\ The letters will not include OCNs with 
their respective assigned number counts, but rather, an aggregate total 
of assigned numbers for each carrier.
---------------------------------------------------------------------------

    \60\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2005 and Assessment and Collection of Regulatory Fees for 
Fiscal Year 2004, MD Docket Nos. 05-59 and 04-73, Report and Order 
and Order on Reconsideration, 20 FCC Rcd 12259, 12264, paragraphs 
38-44 (2005).
    \61\ Id.
---------------------------------------------------------------------------

    35. We will also continue our procedure of giving entities an 
opportunity to revise their subscriber counts by sending an initial and 
a final assessment letter. If the carrier does not agree with the 
number of subscribers listed on the initial assessment letter, the 
carrier can correct its subscriber count on the letter and return it by 
the date specified in the assessment letter or by contacting the 
Commission and stating a reason for the change (e.g., a purchase or 
sale of a subsidiary), the date of the transaction, and any other 
pertinent information that will help to justify a reason for the 
change. If we receive no response or correction to our initial 
assessment letter, we will expect the fee payment to be based on the 
number of subscribers listed on the initial assessment. We will review 
all responses to the initial assessment letters and determine whether a 
change in the number of subscribers is warranted. The final assessment 
letter will inform carriers as to whether we have accepted their 
revision in the number of subscribers.
    36. Because some carriers do not file the NRUF report, they may not 
receive a letter of assessment. In these instances, the carriers should 
compute their fee payment using the standard methodology \62\ that is 
currently in place for CMRS Wireless services (e.g., compute their 
subscriber counts as of December 31, 2008), and submit their fee 
payment accordingly. Whether a carrier receives an assessment letter or 
not, the Commission reserves the right to audit the number of 
subscribers for which regulatory fees are paid. In the event that the 
Commission determines that the number of subscribers is inaccurate or 
that an insufficient reason is given for making a correction on the 
initial assessment letter, the Commission will assess the carrier for 
the difference between what was paid and what should have been paid.
---------------------------------------------------------------------------

    \62\ See, e.g., Federal Communications Commission, Regulatory 
Fees Fact Sheet: What You Owe--Commercial Wireless Services for FY 
2008 at 1 (rel. Aug. 2008).
---------------------------------------------------------------------------

C. Streamlined Regulatory Fee Payment Process

1. Cable Television Subscribers
    37. We will continue to permit cable television operators to base 
their regulatory fee payment on their company's aggregate year-end 
subscriber count, rather than requiring them to sub-report subscriber 
counts on a per community unit identifier (CUID) basis.
2. CMRS Cellular and Mobile Providers
    38. In FY 2006, we streamlined the CMRS payment process by 
eliminating the requirement for CMRS providers to identify their 
individual calls signs when making their regulatory fee payment, 
requiring instead for CMRS providers to pay their regulatory fees only 
at the aggregate subscriber level without having to identify their 
various call signs.\63\ We will continue this practice in FY 2009. In 
FY 2007, we consolidated the CMRS cellular and CMRS mobile fee 
categories into one fee category and as one fee code, thereby 
eliminating the requirement for CMRS

[[Page 40095]]

providers to separate their subscriber counts into CMRS cellular and 
CMRS mobile fee categories during the regulatory fee payment process. 
This consolidation of fee categories enabled the Commission to process 
payments more quickly and accurately. For FY 2009, we will continue 
this practice of combining the CMRS cellular and CMRS mobile fee 
categories into one regulatory fee category.
---------------------------------------------------------------------------

    \63\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092, 
8105, paragraph 48 (2006).
---------------------------------------------------------------------------

3. Interstate Telecommunications Service Providers (ITSP)
    39. In FY 2007, we adopted a proposal to round lines 14 (total 
subject revenues) and 16 (total regulatory fee owed) on FCC Form 159-W 
to the nearest dollar. This revision enabled the Commission to process 
the ITSP regulatory fee payments more quickly because rounding was 
performed in a consistent manner and eliminated processing issues that 
occurred in prior years. In FY 2009, we will continue rounding lines 14 
and 16 when calculating the FY 2009 ITSP fee obligation, but as 
indicated earlier, we will not be mailing out Form 159-W via surface 
mail.

D. Payment of Regulatory Fees

1. Lock Box Bank
    40. All lock box payments to the Commission for FY 2009 will be 
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC. 
For all regulatory fees, the address is: Federal Communications 
Commission, Regulatory Fees, P.O. Box 979084, St. Louis, MO 63197-9000.
2. Receiving Bank for Wire Payments
    41. The receiving bank for all wire payments is the Federal Reserve 
Bank, New York, New York (TREAS NYC). When making a wire transfer, 
regulatees must fax a copy of their Fee Filer generated Form 159-E to 
U.S. Bank, St. Louis, Missouri at (314) 418-4232 at least one hour 
before initiating the wire transfer (but on the same business day), so 
as to not delay crediting their account. Wire transfers initiated after 
6:00 p.m. (EDT) will be credited the next business day. Complete 
instructions for making wire payments are posted at http://www.fcc.gov/fees/wiretran.html.
3. De Minimis Regulatory Fees
    42. Regulatees whose total FY 2009 regulatory fee liability, 
including all categories of fees for which payment is due, is less than 
$10 are exempted from payment of FY 2009 regulatory fees.
4. Standard Fee Calculations and Payment Dates
    43. The Commission will accept fee payments made in advance of the 
window for the payment of regulatory fees. The responsibility for 
payment of fees by service category is as follows:
     Media Services: Regulatory fees must be paid for initial 
construction permits (including construction permits for digital 
television stations) that were granted on or before October 1, 2008 for 
AM/FM radio stations, analog VHF/UHF full service television stations, 
and satellite television stations. Regulatory fees must be paid for all 
broadcast facility licenses granted on or before October 1, 2008. In 
instances where a permit or license is transferred or assigned after 
October 1, 2008, responsibility for payment rests with the holder of 
the permit or license as of the fee due date.
     Wireline (Common Carrier) Services: Regulatory fees must 
be paid for authorizations that were granted on or before October 1, 
2008. In instances where a permit or license is transferred or assigned 
after October 1, 2008, responsibility for payment rests with the holder 
of the permit or license as of the fee due date. We note that audio 
bridging service providers are included in this category.\64\
---------------------------------------------------------------------------

    \64\ Audio bridging services are toll teleconferencing services, 
and audio bridging service providers are required to contribute 
directly to the universal service fund based on revenues from these 
services. On June 30, 2008, the Commission released the InterCall 
Order, in which the Commission stated that InterCall, Inc. and all 
similarly situated audio bridging service providers are required to 
contribute directly to the universal service fund. See Request for 
Review by InterCall, Inc. of Decision of Universal Service 
Administrator, CC Docket No. 96-45, Order, 23 FCC Rcd 10731 (2008) 
(``InterCall Order'').
---------------------------------------------------------------------------

     Wireless Services: CMRS cellular, mobile, and messaging 
services (fees based on number of subscribers or telephone number 
count): Regulatory fees must be paid for authorizations that were 
granted on or before October 1, 2008. The number of subscribers, units, 
or telephone numbers on December 31, 2008 will be used as the basis 
from which to calculate the fee payment.
     The first eleven regulatory fee categories in our Schedule 
of Regulatory Fees (see Appendix C) pay ``small multi-year wireless 
regulatory fees.'' Entities pay these regulatory fees in advance for 
the entire amount of their five-year or ten-year term of initial 
license, and only pay regulatory fees again when the license is renewed 
or a new license is obtained. We include these fee categories in our 
Schedule of Regulatory Fees to publicize our estimates of the number of 
``small multi-year wireless'' licenses that will be renewed or newly 
obtained in FY 2009.
     Multichannel Video Programming Distributor Services (cable 
television operators and CARS licensees): Regulatory fees must be paid 
for the number of basic cable television subscribers as of December 31, 
2008.\65\ Regulatory fees also must be paid for CARS licenses that were 
granted on or before October 1, 2008. In instances where a CARS license 
is transferred or assigned after October 1, 2008, responsibility for 
payment rests with the holder of the license as of the fee due date.
---------------------------------------------------------------------------

    \65\ Cable television system operators should compute their 
basic subscribers as follows: Number of single family dwellings + 
number of individual households in multiple dwelling unit 
(apartments, condominiums, mobile home parks, etc.) paying at the 
basic subscriber rate + bulk rate customers + courtesy and free 
service. Note: Bulk-Rate Customers = Total annual bulk-rate charge 
divided by basic annual subscription rate for individual households. 
Operators may base their count on ``a typical day in the last full 
week'' of December 2008, rather than on a count as of December 31, 
2008.
---------------------------------------------------------------------------

     International Services: Regulatory fees must be paid for 
earth stations, geostationary orbit space stations and non-
geostationary orbit satellite systems that were licensed and 
operational on or before October 1, 2008. In instances where a license 
is transferred or assigned after October 1, 2008, responsibility for 
payment rests with the holder of the license as of the fee due date. 
Regulatory fees will be paid for international bearer circuits under 
our newly adopted methodology pending a 90-day Congressional 
notification for this permitted amendment; \66\ if for any reason the 
methodology change is not instituted in FY 2009, the pre-FY 2009 
methodology will be used to calculate FY 2009 bearer circuit regulatory 
fees.
---------------------------------------------------------------------------

    \66\ See Submarine Cable Order.
---------------------------------------------------------------------------

E. Enforcement

    44. Regulatory fee payments must be received and stamped at the 
lockbox bank by the last day of the regulatory fee filing window to be 
considered timely. Section 9(c) of the Act requires us to impose an 
additional charge as a penalty for late payment of any regulatory 
fee.\67\ A late payment penalty of 25 percent of the unpaid amount of 
the required regulatory fee will be assessed on the first day following 
the deadline date for filing of these fees. Failure to pay regulatory 
fees and/or any late penalty will subject regulatees to sanctions, 
including those set forth in Sec.  1.1910 of the Commission's rules 
\68\ and in the Debt Collection Improvement

[[Page 40096]]

Act of 1996 (DCIA).\69\ We also assess administrative processing 
charges on delinquent debts to recover additional costs incurred in 
processing and handling the related debt pursuant to the DCIA and Sec.  
1.1940(d) of the Commission's rules.\70\ These administrative 
processing charges will be assessed on any delinquent regulatory fee, 
in addition to the 25 percent late charge penalty. In case of partial 
payments (underpayments) of regulatory fees, the licensee will be given 
credit for the amount paid, but if it is later determined that the fee 
paid is incorrect or not timely paid, then the 25 percent late charge 
penalty (and other charges and/or sanctions, as appropriate) will be 
assessed on the portion that is not paid in a timely manner.
---------------------------------------------------------------------------

    \67\ 47 U.S.C. 159(c).
    \68\ See 47 CFR 1.1910.
    \69\ Delinquent debt owed to the Commission triggers application 
of the ``red light rule'' which requires offsets or holds on pending 
disbursements. 47 CFR 1.1910. In 2004, the Commission adopted rules 
implementing the requirements of the DCIA. See Amendment of Parts 0 
and 1 of the Commission's Rules, MD Docket No. 02-339, Report and 
Order, 19 FCC Rcd 6540 (2004); 47 CFR Part 1, Subpart O, Collection 
of Claims Owed the United States.
    \70\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------

    45. We will withhold action on any applications or other requests 
for benefits filed by anyone who is delinquent in any non-tax debts 
owed to the Commission (including regulatory fees) and will ultimately 
dismiss those applications or other requests if payment of the 
delinquent debt or other satisfactory arrangement for payment is not 
made.\71\ Failure to pay regulatory fees can also result in the 
initiation of a proceeding to revoke any and all authorizations held by 
the entity responsible for paying the delinquent fee(s).
---------------------------------------------------------------------------

    \71\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
---------------------------------------------------------------------------

F. Final Regulatory Flexibility Analysis

    46. As required by the Regulatory Flexibility Act of 1980 
(RFA),\72\ the Commission has prepared a Final Regulatory Flexibility 
Analysis (FRFA) relating to this Report and Order. The FRFA is set 
forth in Appendix F.
---------------------------------------------------------------------------

    \72\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (``SBREFA''), Public Law 104-121, Title II, 110 Stat. 847 
(1996). The SBREFA was enacted as Title II of the Contract With 
America Advancement Act of 1996 (CWAAA).
---------------------------------------------------------------------------

G. Congressional Review Act Analysis

    47. The Commission will send a copy of this Report and Order in a 
report to be sent to Congress and the Government Accountability Office, 
pursuant to the Congressional Review Act.\73\
---------------------------------------------------------------------------

    \73\ See 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is 
contained in Title II, 251, of the CWAAA; see Public Law 104-121, 
Title II, 251, 110 Stat. 868.
---------------------------------------------------------------------------

H. Final Paperwork Reduction Act Analysis

    48. This Report and Order contains modified information collection 
requirements subject to the Paperwork Reduction Act of 1995 (PRA), 
Public Law 104-13. It will be submitted to the Office of Management and 
Budget (OMB) for review under section 3507(d) of the PRA.\74\ Our 
proposed new form for submarine cable operators is attached as Appendix 
G. OMB and the general public will be afforded an opportunity to 
comment on the modified information collection requirements contained 
in this proceeding. In addition, we note that pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4), we previously sought specific comment on how the 
Commission might ``further reduce the information collection burden for 
small business concerns with fewer than 25 employees.'' We received no 
comment regarding such potential small business burdens.
---------------------------------------------------------------------------

    \74\ 44 U.S.C. 3507(d).
---------------------------------------------------------------------------

IV. Ordering Clauses

    49. Accordingly, it is ordered that, pursuant to sections 4(i) and 
(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47 
U.S.C. 154(i), 154(j), 159, and 303(r), this Report and Order is hereby 
adopted.
    50. It is further ordered that the FY 2009 section 9 regulatory fee 
assessment requirements are adopted as specified herein.
    51. It is further ordered that part 1 of the Commission's rules is 
amended as set forth in the Rule Changes, and these rules shall become 
effective September 10, 2009.
    52. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Report and Order, including the Final Regulatory 
Flexibility Analysis in Appendix F, to the Chief Counsel for Advocacy 
of the U.S. Small Business Administration.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure.

Rule Changes

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

PART 1--PRACTICE AND PROCEDURE

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

    Authority:  15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 
155, 157, 225, 303(r), and 309.

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


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

------------------------------------------------------------------------
                                       Fee
    Exclusive use services (per       amount            Address
             license)                  \1\
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz and
 220 MHz Local, Base Station &
 SMRS) (47 CFR, Part 90)
    (a) New, Renew/Mod (FCC 601 &      $40.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (b) New, Renew/Mod (Electronic      40.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.
    (c) Renewal Only (FCC 601 &         40.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (d) Renewal Only (Electronic        40.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.
    220 MHz Nationwide
    (a) New, Renew/Mod (FCC 601 &       40.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (b) New, Renew/Mod (Electronic      40.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.
    (c) Renewal Only (FCC 601 &         40.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (d) Renewal Only (Electronic        40.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.
2. Microwave (47 CFR Pt. 101)
 (Private)
    (a) New, Renew/Mod (FCC 601 &       30.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (b) New, Renew/Mod (Electronic      30.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.

[[Page 40097]]

 
    (c) Renewal Only (FCC 601 &         30.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (d) Renewal Only (Electronic        30.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.
3. 218-219 MHz Service
    (a) New, Renew/Mod (FCC 601 &       65.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (b) New, Renew/Mod (Electronic      65.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.
    (c) Renewal Only (FCC 601 &         65.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000
    (d) Renewal Only (Electronic        65.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.
4. Shared Use Services
    Land Mobile (Frequencies Below
     470 MHz--except 220 MHz)
    (a) New, Renew/Mod (FCC 601 &       20.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (b) New, Renew/Mod (Electronic      20.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.
    (c) Renewal Only (FCC 601 &         20.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (d) Renewal Only (Electronic        20.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.
    General Mobile Radio Service
    (a) New, Renew/Mod (FCC 605 &        5.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (b) New, Renew/Mod (Electronic       5.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 605 & 159).                   Louis, MO 63197-9000.
    (c) Renewal Only (FCC 605 &          5.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (d) Renewal Only (Electronic         5.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 605 & 159).                   Louis, MO 63197-9000.
    Rural Radio (Part 22)
    (a) New, Additional Facility,       20.00  FCC, P.O. Box 979097, St.
     Major Renew/Mod (Electronic                Louis, MO 63197-9000.
     Filing) (FCC 601 & 159).
    (b) Renewal, Minor Renew/Mod        20.00  FCC, P.O. Box 979097, St.
     (Electronic Filing) (FCC 601               Louis, MO 63197-9000.
     & 159).
    Marine Coast
    (a) New, Renewal/Mod (FCC 601       45.00  FCC, P.O. Box 979097, St.
     & 159).                                    Louis, MO 63197-9000.
    (b) New, Renewal/Mod                45.00  FCC, P.O. Box 979097, St.
     (Electronic Filing) (FCC 601               Louis, MO 63197-9000.
     & 159).
    (c) Renewal Only (FCC 601 &         45.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (d) Renewal Only (Electronic        45.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 601 & 159).                   Louis, MO 63197-9000.
    Aviation Ground
    (a) New, Renewal/Mod (FCC 601       10.00  FCC, P.O. Box 979097, St.
     & 159).                                    Louis, MO 63197-9000.
    (b) New, Renewal/Mod                10.00  FCC, P.O. Box 979097, St.
     (Electronic Filing) (FCC 601               Louis, MO 63197-9000.
     & 159).
    (c) Renewal Only (FCC 601 &         10.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (d) Renewal Only (Electronic        10.00  FCC, P.O. Box 979097, St.
     Only) (FCC 601 & 159).                     Louis, MO 63197-9000.
    Marine Ship
    (a) New, Renewal/Mod (FCC 605       10.00  FCC, P.O. Box 979097, St.
     & 159).                                    Louis, MO 63197-9000.
    (b) New, Renewal/Mod                10.00  FCC, P.O. Box 979097, St.
     (Electronic Filing) (FCC 605               Louis, MO 63197-9000.
     & 159).
    (c) Renewal Only (FCC 605 &         10.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (d) Renewal Only (Electronic        10.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 605 & 159).                   Louis, MO 63197-9000.
    Aviation Aircraft
    (a) New, Renew/Mod (FCC 605 &        5.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (b) New, Renew/Mod (Electronic       5.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 605 & 159).                   Louis, MO 63197-9000.
    (c) Renewal Only (FCC 605 &          5.00  FCC, P.O. Box 979097, St.
     159).                                      Louis, MO 63197-9000.
    (d) Renewal Only (Electronic         5.00  FCC, P.O. Box 979097, St.
     Filing) (FCC 605 & 159).                   Louis, MO 63197-9000.
5. Amateur Vanity Call Signs
    (a) Initial or Renew (FCC 605        1.34  FCC, P.O. Box 979097, St.
     & 159).                                    Louis, MO 63197-9000.
    (b) Initial or Renew                 1.34  FCC, P.O. Box 979097, St.
     (Electronic Filing) (FCC 605               Louis, MO 63197-9000.
     & 159).
6. CMRS Cellular/Mobile Services
 (per unit)
    (FCC 159).....................     .18\2\  FCC, P.O. Box 979084, St.
                                                Louis, MO 63197-9000.
7. CMRS Messaging Services (per
 unit)
    (FCC 159).....................     .08\3\  FCC, P.O. Box 979084, St.
                                                Louis, MO 63197-9000.
8. Broadband Radio Service
    (formerly MMDS and MDS).......        320  FCC, P.O. Box 979084, St.
                                                Louis, MO 63197-9000.
9. Local Multipoint Distribution          320  FCC, P.O. Box 979084, St.
 Service                                        Louis, MO 63197-9000.
------------------------------------------------------------------------
\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.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
1. AM Class A
    <=25,000 population...........       $675  FCC, Radio, P.O. Box
                                                979084, St. Louis, MO
                                                63197-9000.
    25,001-75,000 population......      1,350
    75,001-150,000 population.....      2,025
    150,001-500,000 population....      3,050
    500,001-1,200,000 population..      4,400
    1,200,001-3,000,000 population      6,750

[[Page 40098]]

 
    >3,000,000 population.........      8,100
2. AM Class B
    <=25,000 population...........        550  FCC, Radio, P.O. Box
                                                979084, St. Louis, MO
                                                63197-9000.
    25,001-75,000 population......      1,075
    75,001-150,000 population.....      1,350
    150,001-500,000 population....      2,300
    500,001-1,200,000 population..      3,500
    1,200,001-3,000,000 population      5,400
    >3,000,000 population.........      6,475
3. AM Class C
    <=25,000 population...........        500  FCC, Radio, P.O. Box
                                                979084, St. Louis, MO
                                                63197-9000.
    25,001-75,000 population......        750
    75,001-150,000 population.....      1,000
    150,001-500,000 population....      1,500
    500,001-1,200,000 population..      2,500
    1,200,001-3,000,000 population      3,750
    >3,000,000 population.........      4,750
4. AM Class D
    <=25,000 population...........        575  FCC, Radio, P.O. Box
                                                979084, St. Louis, MO
                                                63197-9000.
    25,001-75,000 population......        875
    75,001-150,000 population.....      1,450
    150,001-500,000 population....      1,725
    500,001-1,200,000 population..      2,875
    1,200,001-3,000,000 population      4,600
    >3,000,000 population.........      5,750
5. AM Construction Permit.........        400  FCC, Radio, P.O. Box
                                                979084, St. Louis, MO
                                                63197-9000.
6. FM Classes A, B1 and C3
    <=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.....      1,825
    150,001-500,000 population....      2,800
    500,001-1,200,000 population..      4,450
    1,200,001-3,000,000 population      7,250
    >3,000,000 population.........      9,250
7. FM Classes B, C, C0, C1 and C2
    <=25,000 population...........        825  FCC, Radio, P.O. Box
                                                979084, St. Louis, MO
                                                63197-9000.
    25,001-75,000 population......      1,450
    75,001-150,000 population.....      2,725
    150,001-500,000 population....      3,550
    500,001-1,200,000 population..      5,225
    1,200,001-3,000,000 population      8,350
    >3,000,000 population.........     10,850
8. FM Construction Permits........        650  FCC, Radio, P.O. Box
                                                979084, St. Louis, MO
                                                63197-9000.
TV (47 CFR, Part 73) VHF
 Commercial
1. Markets 1 thru 10..............     77,575  FCC, TV Branch, P.O. Box
                                                979084, St. Louis, MO
                                                63197-9000.
2. Markets 11 thru 25.............     60,550
3. Markets 26 thru 50.............     37,575
4. Markets 51 thru 100............     22,950
5. Remaining Markets..............      5,950
6. Construction Permits...........      5,950
UHF Commercial
1. Markets 1 thru 10..............     24,250  FCC, UHF Commercial, P.O.
                                                Box 979084, St. Louis,
                                                MO, 63197-9000.
2. Markets 11 thru 25.............     21,525
3. Markets 26 thru 50.............     13,350
4. Markets 51 thru 100............      7,600
5. Remaining Markets..............      1,950
6. Construction Permits...........      1,950
Satellite UHF/VHF Commercial
1. All Markets....................      1,275  FCC Satellite TV P.O. Box
                                                979084, St. Louis, MO
                                                63197-9000.
2. Construction Permits...........        650
Low Power TV, Class A TV, TV/FM           400  FCC, Low Power, P.O. Box
 Translator, & TV/FM Booster (47                979084, St. Louis, MO
 CFR Part 74).                                  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:

[[Page 40099]]

 
    1. Microwave (Domestic Public      $30.00  FCC, P.O. Box 979097, St.
     Fixed) (Electronic Filing)                 Louis, MO 63197-9000.
     (FCC Form 601 & 159).
Carriers:
    1. Interstate Telephone            .00342  FCC, Carriers, P.O. Box
     Service Providers (per                     979084, St. Louis, MO
     interstate and international               63197-9000.
     end-user revenues (see FCC
     Form 499-A).
------------------------------------------------------------------------


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


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

------------------------------------------------------------------------
                                       Fee
                                      amount            Address
------------------------------------------------------------------------
1. Cable Television Relay Service.       $260  FCC, Cable, P.O. Box
                                                979084, St. Louis, MO
                                                63197-9000.
2. Cable TV System (per                   .88
 subscriber).
------------------------------------------------------------------------


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


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

    (a) The following schedule applies for the listed services:

------------------------------------------------------------------------
                                       Fee
           Fee category               amount            Address
------------------------------------------------------------------------
(1) Space Stations (Geostationary    $127,175  FCC, International, P.O.
 Orbit).                                        Box 979084, St. Louis,
                                                MO 63197-9000.
(2) Space Stations (Non-              137,225  FCC, International, P.O.
 Geostationary Orbit).                          Box 979084, St. Louis,
                                                MO 63197-9000.
(3) Earth Stations: Transmit/             210  FCC, International, P.O.
 Receive & Transmit only (per                   Box 979084, St. Louis,
 authorization or registration).                MO 63197-9000.
------------------------------------------------------------------------

     (b) (1) International Terrestrial and Satellite. Regulatory fees 
for International Bearer Circuits are to be paid by facilities-based 
common carriers that have active (used or leased) international bearer 
circuits as of December 31, of the prior year in any terrestrial or 
satellite 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. ``Active circuits'' for 
these purposes include backup and redundant circuits. In addition, 
whether circuits are used specifically for voice or data is not 
relevant in determining that they are active circuits.
    (2) The fee amount, per active 64 KB circuit or equivalent will be 
determined for each fiscal year. Payment, if mailed, shall be sent to: 
FCC, International, P.O. Box 979084, St. Louis, MO 63197-9000.

------------------------------------------------------------------------
 International terrestrial and
  satellite  (capacity as of        Fee amount            Address
      December 31, 2008)
------------------------------------------------------------------------
Terrestrial Common Carrier,     $0.75 per 64 KB    FCC, International,
 Satellite Common Carrier,       Circuit.           P.O. Box 979084, St.
 Satellite Non-Common Carrier.                      Louis, MO 63197-
                                                    9000.
------------------------------------------------------------------------

    (c) Submarine cable: Regulatory fees for submarine cable systems 
will be paid annually, per cable landing license, for all submarine 
cable systems operating as of December 31 of the prior year. The fee 
amount will be determined by the Commission for each fiscal year. 
Payment, if mailed, shall be sent to: FCC, International, P.O. Box 
979084, St. Louis, MO 63197-9000.

------------------------------------------------------------------------
 Submarine cable systems (capacity     Fee
        as of December 31)            amount            Address
------------------------------------------------------------------------
< 2.5 Gbps........................    $15,075  FCC, International, P.O.
                                                Box 979084, St. Louis,
                                                MO 63197-9000.
2.5 Gbps or greater, but less than     30,125  FCC, International, P.O.
 5 Gbps.                                        Box 979084, St. Louis,
                                                MO 63197-9000.
5 Gbps or greater, but less than       60,250  FCC, International, P.O.
 10 Gbps.                                       Box 979084, St. Louis,
                                                MO 63197-9000.
10 Gbps or greater, but less than     120,525  FCC, International, P.O.
 20 Gbps.                                       Box 979084, St. Louis,
                                                MO 63197-9000.

[[Page 40100]]

 
20 Gbps or greater................    241,025  FCC, International, P.O.
                                                Box 979084, St. Louis,
                                                MO 63197-9000.
------------------------------------------------------------------------


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

Appendix A

                           List of Commenters
------------------------------------------------------------------------
            Commenter                         Abbreviated name
------------------------------------------------------------------------
American Association of Paging     AAPC.
 Carriers.
American Cable Association.......  ACA.
AT&T, Inc........................  AT&T.
Bestel USA Inc., Hibernia          Joint Commenters.
 Atlantic US LLC, and Level 3
 Communications, LLC.
Coalition of Canadian-Based        Coalition.
 Service Providers.
Independent Telephone and          ITTA.
 Telecommunications Alliance.
Sprint Nextel....................  Sprint.
Named State Broadcasters           State Associations.
 Associations.
United States Telecom Association  USTelecom.
------------------------------------------------------------------------


                   List of Commenters--Reply Comments
------------------------------------------------------------------------
            Commenter                         Abbreviated name
------------------------------------------------------------------------
AT&T, Inc........................  AT&T.
Verizon and Verizon Wireless.....  Verizon.
------------------------------------------------------------------------

Appendix B

                                              Calculation of FY 2009 Revenue Requirements and Pro-Rata Fees
 [Regulatory fees for the categories shaded in gray are collected by the Commission in advance to cover the term of the license and are submitted along
                                               with the application at the time the application is filed]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Computed
                                                                                         FY 2008      Pro-rated     new  FY    Rounded new  Expected  FY
                       Fee category                             FY 2009       Years      revenue       FY 2009        2009        FY 2009       2009
                                                             payment units              estimate       revenue     regulatory   regulatory     revenue
                                                                                                     requirement      fee          fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use).....................................            1,200       10       460,000       501,932           42           40       480,000
PLMRS (Shared use)........................................           11,500       10     2,300,000     2,509,659           22           20     2,300,000
Microwave.................................................            7,500       10     1,960,000     2,138,666           29           30     2,250,000
218-219 MHz (Formerly IVDS)...............................                3       10         1,800         1,964           65           65         1,950
Marine (Ship).............................................            7,500       10       840,000       916,571           12           10       750,000
GMRS......................................................           11,000        5       350,000       381,905            7            5       275,000
Aviation (Aircraft).......................................            7,000       10       375,000       409,183            6            5       350,000
Marine (Coast)............................................              275       10       108,500       118,390           43           45       123,750
Aviation (Ground).........................................            1,500       10       170,000       185,497           12           10       150,000
Amateur Vanity Call Signs.................................           15,000       10       184,500       201,318         1.34         1.34       201,000
AM Class A................................................               65        1       227,500       248,238        3,819        3,825       248,625
AM Class B................................................            1,567        1     2,737,000     2,986,494        1,906        1,900     2,977,300
AM Class C................................................              938        1       958,375     1,045,737        1,115        1,125     1,055,250
AM Class D................................................            1,715        1     3,241,400     3,536,873        2,062        2,050     3,515,750
FM Classes A, B1 & C3.....................................            3,045        1     6,764,000     7,405,656        2,432        2,425     7,384,125
FM Classes B, C, C0, C1 & C2..............................            3,051        1     8,292,175     9,073,132        2,974        2,975     9,076,725
AM Construction Permits...................................              107        1        39,425        43,019          402          400        42,800
FM Construction Permits \1\...............................              224        1       179,400       145,600          650          650       145,600
Satellite TV..............................................              127        1       149,225       162,828        1,282        1,275       161,925
Satellite TV Construction Permit..........................                3        1         1,785         1,948          649          650         1,950
VHF Markets 1-10..........................................               42        1     2,984,100     3,257,932       77,570       77,575     3,258,150
VHF Markets 11-25.........................................               55        1     3,050,925     3,330,848       60,561       60,550     3,330,250
VHF Markets 26-50.........................................               75        1     2,581,425     2,818,550       37,581       37,575     2,818,125
VHF Markets 51-100........................................              118        1     2,480,950     2,708,256       22,951       22,950     2,708,100
VHF Remaining Markets.....................................              200        1     1,092,000     1,191,542        5,958        5,950     1,190,000
VHF Construction Permits \1\..............................                3        1        22,400        17,850        5,950        5,950        17,850
UHF Markets 1-10..........................................               87        1     1,931,475     2,109,219       24,244       24,250     2,109,750
UHF Markets 11-25.........................................               81        1     1,596,950     1,744,200       21,533       21,525     1,743,525
UHF Markets 26-50.........................................              110        1     1,344,700     1,468,956       13,354       13,350     1,468,500
UHF Markets 51-100........................................              164        1     1,142,400     1,247,604        7,607        7,600     1,246,400

[[Page 40101]]

 
UHF Remaining Markets.....................................              195        1       347,400       379,068        1,944        1,950       380,250
UHF Construction Permits \1\..............................               15        1        32,400        29,250        1,950        1,950        29,250
Broadcast Auxiliaries.....................................           27,500        1       276,000       301,159           11           10       275,000
LPTV/Translators/Boosters/Class A TV......................            3,450        1     1,277,500     1,393,952          404          400     1,380,000
CARS Stations.............................................              650        1       153,750       167,765          258          260       169,000
Cable TV Systems..........................................       64,500,000        1    51,840,000    56,565,522       0.8769         0.88    56,760,000
Interstate Telecommunication Service Providers............   46,800,000,000        1   146,638,000   160,004,920    0.0034189      0.00342   160,056,000
CMRS Mobile Services (Cellular/Public Mobile).............      276,000,000        1    44,200,000    48,280,138       0.1749        0.180    49,680,000
CMRS Messag. Services.....................................        7,000,000        1       560,000       560,000        0.080        0.080       560,000
BRS \2\...................................................            1,725        1       501,500       552,000          320          320       552,000
LMDS......................................................              335        1        98,825       107,200          320          320       107,200
Per 64 kbps Int'l Bearer Circuits Terrestrial (Common) &          1,482,372        1     8,137,500     1,106,700        0.747         0.75     1,111,779
 Satellite (Common & Non-Common)
Submarine Cable Providers (see chart in Appendix C) \3\...            32.44        1  ............     7,818,300      241,008      241,000     7,818,040
Earth Stations............................................            4,050        1       780,000       851,102          210          210       850,500
Space Stations (Geostationary)............................               87        1    10,140,500    11,064,866      127,182      127,175    11,064,225
Space Stations (Non-Geostationary.........................                6        1       754,500       823,277      137,213      137,225       823,350
                                                           ---------------------------------------------------------------------------------------------
     * * * Total Estimated Revenue to be Collected........  ...............  .......   313,305,285   341,814,783  ...........  ...........   342,998,994
                                                           ---------------------------------------------------------------------------------------------
     * * * Total Revenue Requirement......................  ...............  .......   312,000,000   341,875,000  ...........  ...........   341,875,000
                                                           ---------------------------------------------------------------------------------------------
    Difference............................................  ...............  .......     1,305,285        39,783  ...........  ...........     1,123,994
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The FM Construction Permit revenues and the VHF and UHF Construction Permit revenues were adjusted to set the regulatory fee to an amount no higher
  than the lowest licensed fee for that class of service. The reductions in the FM Construction Permit revenues are offset by increases in the revenue
  totals for FM radio stations. Similarly, reductions in the VHF and UHF Construction Permit revenues are offset by increases in the revenue totals for
  VHF and UHF television stations, respectively.
\2\ MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate
  the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands, Report & Order
  and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, paragraph 6 (2004).
\3\ The chart at the end of Appendix C lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from
  the adoption of the following proceedings: Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order (MD Docket No.
  08-65, RM-11312), released March 24, 2009; and Assessment and Collection of Regulatory Fees for Fiscal Year 2009 and Assessment and Collection of
  Regulatory Fees for Fiscal Year 2008, Notice of Proposed Rulemaking and Order (MD Docket No. 09-65, MD Docket No. 08-65), released on May 14, 2009.

Appendix C

                   FY 2009 Schedule of Regulatory Fees
 [Regulatory fees for the categories shaded in gray are collected by the
Commission in advance to cover the term of the license and are submitted
    along with the application at the time the application is filed]
------------------------------------------------------------------------
                                                                Annual
                                                              regulatory
                        Fee category                          fee  (U.S.
                                                                 $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).......           40
Microwave (per license) (47 CFR part 101)..................           30
218-219 MHz (Formerly Interactive Video Data Service) (per            65
 license) (47 CFR part 95).................................
Marine (Ship) (per station) (47 CFR part 80)...............           10
Marine (Coast) (per license) (47 CFR part 80)..............           45
General Mobile Radio Service (per license) (47 CFR part 95)            5
Rural Radio (47 CFR part 22) (previously listed under the             20
 Land Mobile category).....................................
PLMRS (Shared Use) (per license) (47 CFR part 90)..........           20
Aviation (Aircraft) (per station) (47 CFR part 87).........            5
Aviation (Ground) (per license) (47 CFR part 87)...........           10
Amateur Vanity Call Signs (per call sign) (47 CFR part 97).         1.34
CMRS Mobile/Cellular Services (per unit) (47 CFR parts 20,           .18
 22, 24, 27, 80 and 90)....................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24          .08
 and 90)...................................................          320

[[Page 40102]]

 
Broadband Radio Service (formerly MMDS/MDS) (per license)            320
 (47 CFR part 21)..........................................
Local Multipoint Distribution Service (per call sign) (47
 CFR, part 101)............................................
AM Radio Construction Permits..............................          400
FM Radio Construction Permits..............................          650
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10...........................................       77,575
    Markets 11-25..........................................       60,550
    Markets 26-50..........................................       37,575
    Markets 51-100.........................................       22,950
    Remaining Markets......................................        5,950
    Construction Permits...................................        5,950
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10...........................................       24,250
    Markets 11-25..........................................       21,525
    Markets 26-50..........................................       13,350
    Markets 51-100.........................................        7,600
    Remaining Markets......................................        1,950
    Construction Permits...................................        1,950
Satellite Television Stations (All Markets)................        1,275
Construction Permits--Satellite Television Stations........          650
Low Power TV, Class A TV, TV/FM Translators & Boosters (47           400
 CFR part 74)..............................................
Broadcast Auxiliaries (47 CFR part 74).....................           10
CARS (47 CFR part 78)......................................          260
Cable Television Systems (per subscriber) (47 CFR part 76).          .88
Interstate Telecommunication Service Providers (per revenue       .00342
 dollar)...................................................
Earth Stations (47 CFR part 25)............................          210
Space Stations (per operational station in geostationary         127,175
 orbit) (47 CFR part 25) also includes DBS Service (per
 operational station) (47 CFR part 100)....................
Space Stations (per operational system in non-geostationary      137,225
 orbit) (47 CFR part 25)...................................
International Bearer Circuits--Terrestrial/Satellites (per           .75
 64KB circuit).............................................
International Bearer Circuits--Submarine Cable.............        (\1\)
------------------------------------------------------------------------
\1\ See table below.


                                 FY 2009 Schedule of Regulatory Fees (Continued)
----------------------------------------------------------------------------------------------------------------
                                      FY 2009 Radio Station Regulatory Fees
-----------------------------------------------------------------------------------------------------------------
                                                                                                FM         FM
                                                 AM class   AM class   AM class   AM class   classes    classes
               Population served                    A          B          C          D       A, B1 &   B, C, C0,
                                                                                                C3      C1 & C2
----------------------------------------------------------------------------------------------------------------
<= 25,000.....................................       $675       $550       $500       $575       $650       $825
25,001-75,000.................................      1,350      1,075        750        875      1,325      1,450
75,001-150,000................................      2,025      1,350      1,000      1,450      1,825      2,725
150,001-500,000...............................      3,050      2,300      1,500      1,725      2,800      3,550
500,001-1,200,000.............................      4,400      3,500      2,500      2,875      4,450      5,225
1,200,001-3,000,00............................      6,750      5,400      3,750      4,600      7,250      8,350
> 3,000,000...................................      8,100      6,475      4,750      5,750      9,250     10,850
----------------------------------------------------------------------------------------------------------------


  FY 2009 Schedule of Regulatory Fees--International Bearer Circuits--
                             Submarine Cable
------------------------------------------------------------------------
    Submarine cable systems
  (capacity as of December 31,     Fee amount            Address
             2008)
------------------------------------------------------------------------
< 2.5 Gbps.....................         $15,075  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
2.5 Gbps or greater, but less            30,125  FCC, International,
 than 5 Gbps.                                     P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
5 Gbps or greater, but less              60,250  FCC, International,
 than 10 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
10 Gbps or greater, but less            120,525  FCC, International,
 than 20 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
20 Gbps or greater.............         241,025  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
------------------------------------------------------------------------


[[Page 40103]]

Appendix D

Sources of Payment Unit Estimates for FY 2009

    In order to calculate individual service fees for FY 2009, we 
adjusted FY 2008 payment units for each service to more accurately 
reflect expected FY 2009 payment liabilities. We obtained our 
updated estimates through a variety of means. For example, we used 
Commission licensee data bases, actual prior year payment records 
and industry and trade association projections when available. The 
databases we consulted include our Universal Licensing System (ULS), 
International Bureau Filing System (IBFS), Consolidated Database 
System (CDBS) and Cable Operations and Licensing System (COALS), as 
well as reports generated within the Commission such as the Wireline 
Competition Bureau's Trends in Telephone Service and the Wireless 
Telecommunications Bureau's Numbering Resource Utilization Forecast.
    We tried to obtain verification for these estimates from 
multiple sources and, in all cases, we compared FY 2009 estimates 
with actual FY 2008 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 2009 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 2009 
payment units are based on FY 2008 actual payment units, it does not 
necessarily mean that our FY 2009 projection is exactly the same 
number as FY 2008. We have either rounded the FY 2009 number or 
adjusted it slightly to account for these variables.


------------------------------------------------------------------------
           Fee category               Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, 218-  Based on Wireless Telecommunications
 219 MHz, Marine (Ship & Coast),     Bureau (WTB) projections of new
 Aviation (Aircraft & Ground),       applications and renewals taking
 GMRS, Amateur Vanity Call Signs,    into consideration existing
 Domestic Public Fixed.              Commission licensee data bases.
                                     Aviation (Aircraft) and Marine
                                     (Ship) estimates have been adjusted
                                     to take into consideration the
                                     licensing of portions of these
                                     services on a voluntary basis.
CMRS Cellular/Mobile Services.....  Based on WTB projection reports, and
                                     FY 08 payment data.
CMRS Messaging Services...........  Based on WTB reports, and FY 08
                                     payment data.
AM/FM Radio Stations..............  Based on CDBS data, adjusted for
                                     exemptions, and actual FY 2008
                                     payment units.
UHF/VHF Television Stations.......  Based on CDBS data, adjusted for
                                     exemptions, and actual FY 2008
                                     payment units.
AM/FM/TV Construction Permits.....  Based on CDBS data, adjusted for
                                     exemptions, and actual FY 2008
                                     payment units.
LPTV, Translators and Boosters,     Based on CDBS data, adjusted for
 Class A Television.                 exemptions, and actual FY 2008
                                     payment units.
Broadcast Auxiliaries.............  Based on actual FY 2008 payment
                                     units.
BRS (formerly MDS/MMDS)...........  Based on WTB reports and actual FY
LMDS..............................   2008 payment units.
                                    Based on WTB reports and actual FY
                                     2008 payment units.
Cable Television Relay Service      Based on data from Media Bureau's
 (CARS) Stations.                    COALS data base and actual FY 2008
                                     payment units.
Cable Television System             Based on publicly available data
 Subscribers.                        sources for estimated subscriber
                                     counts and actual FY 2008 payment
                                     units.
Interstate Telecommunication        Based on FCC Form 499-Q data for the
 Service Providers.                  four quarters of calendar year
                                     2008, the Wireline Competition
                                     Bureau projected the amount of
                                     calendar year 2008 revenue that
                                     will be reported on 2008 FCC Form
                                     499-A worksheets in April 2009.
Earth Stations....................  Based on International Bureau (IB)
                                     licensing data and actual FY 2008
                                     payment units.
Space Stations (GSOs & NGSOs).....  Based on IB data reports and actual
                                     FY 2008 payment units.
International Bearer Circuits.....  Based on IB reports and submissions
                                     by licensees.
Submarine Cable Licenses..........  Based on IB license information.
------------------------------------------------------------------------

Appendix E

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

AM Stations

    For stations with nondirectional daytime antennas, the 
theoretical radiation was used at all azimuths. For stations with 
directional daytime antennas, specific information on each day 
tower, including field ratio, phasing, spacing and orientation was 
retrieved, as well as the theoretical pattern root-mean-square of 
the radiation in all directions in the horizontal plane (RMS) figure 
milliVolt per meter (mV/m) @ 1 km) for the antenna system. The 
standard, or modified standard if pertinent, horizontal plane 
radiation pattern was calculated using techniques and methods 
specified in 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 data base 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 2,000 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 
2,000 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.
---------------------------------------------------------------------------

Appendix F

Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\1\ the 
Commission prepared an

[[Page 40104]]

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 2009 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 2009, MD Docket No. 09-65, Notice of Proposed Rulemaking and 
Order, (rel. May 14, 2009) (FY 2009 NPRM and Order).
    \3\ 5 U.S.C. 604.
---------------------------------------------------------------------------

I. Need for, and Objectives of, the Report and Order

    2. This rulemaking proceeding was initiated for the Commission 
to amend its Schedule of Regulatory Fees in the amount of 
$341,875,000, which is the amount that Congress has required the 
Commission to recover. The Commission seeks to collect the necessary 
amount through its revised Schedule of Regulatory Fees in the most 
efficient manner possible and without undue public burden.

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

    3. No parties have raised issues in response to the IRFA.

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

    4. The RFA directs agencies to provide a description of, and 
where feasible, an estimate of the number of small entities that may 
be affected by the proposed rules and policies, 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\
---------------------------------------------------------------------------

    \4\ 5 U.S.C. 603(b)(3).
    \5\ 5 U.S.C. 601(6).
    \6\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \7\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    5. Small Businesses. Nationwide, there are a total of 
approximately 27.2 million small businesses, according to the 
SBA.\8\
---------------------------------------------------------------------------

    \8\ See SBA, Office of Advocacy, ``Frequently Asked Questions,'' 
http://web.sba.gov/faqs (accessed Jan. 2009).
---------------------------------------------------------------------------

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

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

    7. Small Governmental Jurisdictions. The term ``small 
governmental jurisdiction'' is defined generally as ``governments of 
cities, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' \10\ 
Census Bureau data for 2002 indicate that there were 87,525 local 
governmental jurisdictions in the United States.\11\ We estimate 
that, of this total, 84,377 entities were ``small governmental 
jurisdictions.'' \12\ Thus, we estimate that most governmental 
jurisdictions are small.
---------------------------------------------------------------------------

    \10\ 5 U.S.C. 601(5).
    \11\ U.S. Census Bureau, Statistical Abstract of the United 
States: 2006, Section 8, p. 272, Table 415.
    \12\ 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.
---------------------------------------------------------------------------

    8. We have included small incumbent local exchange carriers in 
this present RFA analysis. As noted above, a ``small business'' 
under the RFA is one that, inter alia, meets the pertinent small 
business size standard (e.g., a telephone communications business 
having 1,500 or fewer employees), and ``is not dominant in its field 
of operation.'' \13\ The SBA's Office of Advocacy contends that, for 
RFA purposes, small incumbent local exchange carriers are not 
dominant in their field of operation because any such dominance is 
not ``national'' in scope.\14\ We have therefore included small 
incumbent local exchange carriers in this RFA analysis, although we 
emphasize that this RFA action has no effect on Commission analyses 
and determinations in other, non-RFA contexts.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 632.
    \14\ Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small 
Business Act contains a definition of ``small-business concern,'' 
which the RFA incorporates into its own definition of ``small 
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 
601(3) (RFA). SBA regulations interpret ``small business concern'' 
to include the concept of dominance on a national basis. See 13 CFR 
121.102(b).
---------------------------------------------------------------------------

    9. Incumbent Local Exchange Carriers (ILECs). Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for incumbent local exchange services. The appropriate 
size standard under SBA rules is for the category Wired 
Telecommunications Carriers. Under that size standard, such a 
business is small if it has 1,500 or fewer employees.\15\ According 
to Commission data,\16\ 1,311 carriers have reported that they are 
engaged in the provision of incumbent local exchange services. Of 
these 1,311 carriers, an estimated 1,024 have 1,500 or fewer 
employees and 287 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 our proposed 
action.
---------------------------------------------------------------------------

    \15\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) code 517110.
    \16\ FCC, Wireline Competition Bureau, Industry Analysis and 
Technology Division, ``Trends in Telephone Service'' at Table 5.3, 
Page 5-5 (Aug. 2008) (Trends in Telephone Service). This source uses 
data that are current as of November 1, 2006.
---------------------------------------------------------------------------

    10. Competitive Local Exchange Carriers (CLECs), Competitive 
Access Providers (CAPs), ``Shared-Tenant Service Providers,'' and 
``Other Local Service Providers.'' Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
these service providers. The appropriate size standard under SBA 
rules is for the category Wired Telecommunications Carriers. Under 
that size standard, such a business is small if it has 1,500 or 
fewer employees.\17\ According to Commission data,\18\ 1005 carriers 
have reported that they are engaged in the provision of either 
competitive access provider services or competitive local exchange 
carrier services. Of these 1005 carriers, an estimated 918 have 
1,500 or fewer employees and 87 have more than 1,500 employees. In 
addition, 16 carriers have reported that they are ``Shared-Tenant 
Service Providers,'' and all 16 are estimated to have 1,500 or fewer 
employees. In addition, 89 carriers have reported that they are 
``Other Local Service Providers.'' Of the 89, all have 1,500 or 
fewer 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 our 
proposed action.
---------------------------------------------------------------------------

    \17\ 13 CFR 121.201, NAICS code 517110.
    \18\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    11. Local Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under 
that size standard, such a business is small if it has 1,500 or 
fewer employees.\19\ According to Commission data,\20\ 151 carriers 
have reported that they are engaged in the provision of local resale 
services. Of these, an estimated 149 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 our proposed action.
---------------------------------------------------------------------------

    \19\ 13 CFR 121.201, NAICS code 517310.
    \20\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    12. Toll Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under 
that size standard, such a business is small if it has 1,500 or 
fewer employees.\21\ According to Commission data,\22\ 815 carriers 
have reported that they are engaged in the provision of toll resale 
services. Of these, an estimated 787 have 1,500 or fewer employees 
and 28 have more than 1,500 employees. Consequently, the Commission 
estimates that the majority of toll resellers are small entities 
that may be affected by our proposed action.
---------------------------------------------------------------------------

    \21\ 13 CFR 121.201, NAICS code 517310.
    \22\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    13. Payphone Service Providers (PSPs). Neither the Commission 
nor the SBA has developed a small business size standard 
specifically for payphone services providers. The appropriate size 
standard under SBA

[[Page 40105]]

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.\23\ According to Commission data,\24\ 526 carriers 
have reported that they are engaged in the provision of payphone 
services. Of these, an estimated 524 have 1,500 or fewer employees 
and two have more than 1,500 employees. Consequently, the Commission 
estimates that the majority of payphone service providers are small 
entities that may be affected by our proposed action.
---------------------------------------------------------------------------

    \23\ 3 CFR 121.201, NAICS code 517110.
    \24\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    14. Interexchange Carriers (IXCs). Neither the Commission nor 
the SBA has developed a small business size standard specifically 
for providers of interexchange services. The appropriate size 
standard under SBA rules is for the category Wired 
Telecommunications Carriers. Under that size standard, such a 
business is small if it has 1,500 or fewer employees.\25\ According 
to Commission data,\26\ 300 carriers have reported that they are 
engaged in the provision of interexchange service. Of these, an 
estimated 268 have 1,500 or fewer employees and 32 have more than 
1,500 employees. Consequently, the Commission estimates that the 
majority of IXCs are small entities that may be affected by our 
proposed action.
---------------------------------------------------------------------------

    \25\ 13 CFR 121.201, NAICS code 517110.
    \26\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    15. Operator Service Providers (OSPs). Neither the Commission 
nor the SBA has developed a small business size standard 
specifically for operator service providers. The appropriate size 
standard under SBA rules is for the category Wired 
Telecommunications Carriers. Under that size standard, such a 
business is small if it has 1,500 or fewer employees.\27\ According 
to Commission data,\28\ 28 carriers have reported that they are 
engaged in the provision of operator services. Of these, an 
estimated 27 have 1,500 or fewer employees and one has more than 
1,500 employees. Consequently, the Commission estimates that the 
majority of OSPs are small entities that may be affected by our 
proposed action.
---------------------------------------------------------------------------

    \27\ 13 CFR 121.201, NAICS code 517110.
    \28\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    16. Prepaid Calling Card Providers. Neither the Commission nor 
the SBA has developed a small business size standard specifically 
for prepaid calling card providers. The appropriate size standard 
under SBA rules is for the category Telecommunications Resellers. 
Under that size standard, such a business is small if it has 1,500 
or fewer employees.\29\ According to Commission data,\30\ 88 
carriers have reported that they are engaged in the provision of 
prepaid calling cards. Of these, an estimated 85 have 1,500 or fewer 
employees and three have 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 our proposed 
action.
---------------------------------------------------------------------------

    \29\ 13 CFR 121.201, NAICS code 517310.
    \30\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    17. 800 and 800-Like Service Subscribers.\31\ 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.\32\ 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.\33\ 
According to our data, at the end of December 2007, the number of 
800 numbers assigned was 7,860,000; the number of 888 numbers 
assigned was 5,210,184; the number of 877 numbers assigned was 
4,388,682; and the number of 866 numbers assigned was 7,029,116. 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 7,860,000 or fewer small entity 800 subscribers; 
5,210,184 or fewer small entity 888 subscribers; 4,388,682 or fewer 
small entity 877 subscribers, and 7,029,116 or fewer entity 866 
subscribers.
---------------------------------------------------------------------------

    \31\ We include all toll-free number subscribers in this 
category.
    \32\ 13 CFR 121.201, NAICS code 517310.
    \33\ ``Trends in Telephone Service'' at Tables 18.4, 18.5, 18.6, 
and 18.7.
---------------------------------------------------------------------------

    18. Satellite Telecommunications and All Other 
Telecommunications. These two economic census categories address the 
satellite industry. The first category has a small business size 
standard of $15 million or less in average annual receipts, under 
SBA rules.\34\ The second has a size standard of $25 million or less 
in annual receipts.\35\ The most current Census Bureau data in this 
context, however, are from the (last) economic census of 2002, and 
we will use those figures to gauge the prevalence of small 
businesses in these categories.\36\
---------------------------------------------------------------------------

    \34\ 13 CFR 121.201, NAICS code 517410.
    \35\ 13 CFR 121.201, NAICS code 517919.
    \36\ 13 CFR 121.201, NAICS codes 517410 and 517910 (2002).
---------------------------------------------------------------------------

    19. The category of Satellite Telecommunications ``comprises 
establishments primarily engaged in providing 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.'' \37\ For this category, Census Bureau data for 
2002 show that there were a total of 371 firms that operated for the 
entire year.\38\ Of this total, 307 firms had annual receipts of 
under $10 million, and 26 firms had receipts of $10 million to 
$24,999,999.\39\ Consequently, we estimate that the majority of 
Satellite Telecommunications firms are small entities that might be 
affected by our action.
---------------------------------------------------------------------------

    \37\ U.S. Census Bureau, 2007 NAICS Definitions, ``517410 
Satellite Telecommunications''; http://www.census.gov/naics/2007/def/ND517410.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 517410 (issued Nov. 2005).
    \39\ Id. An additional 38 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    20. The second category of All Other Telecommunications 
comprises, inter alia, ``establishments primarily engaged in 
providing specialized telecommunications services, such as satellite 
tracking, communications telemetry, and radar station operation. 
This industry also includes establishments primarily engaged in 
providing satellite terminal stations and associated facilities 
connected with one or more terrestrial systems and capable of 
transmitting telecommunications to, and receiving telecommunications 
from, satellite systems.'' \40\ For this category, Census Bureau 
data for 2002 show that there were a total of 332 firms that 
operated for the entire year.\41\ Of this total, 303 firms had 
annual receipts of under $10 million and 15 firms had annual 
receipts of $10 million to $24,999,999.\42\ Consequently, we 
estimate that the majority of All Other Telecommunications firms are 
small entities that might be affected by our action.
---------------------------------------------------------------------------

    \40\ U.S. Census Bureau, 2007 NAICS Definitions, ``517919 All 
Other Telecommunications''; http://www.census.gov/naics/2007/def/ND517919.HTM#N517919.
    \41\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 4, NAICS code 517910 (issued Nov. 2005).
    \42\ Id. An additional 14 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    21. Wireless Telecommunications Carriers (except Satellite). 
This category includes cellular, PCS, and certain SMR. Since 2007, 
the Census Bureau has placed wireless firms within this new, broad, 
economic census category.\43\ Prior to that time, such firms were 
within the now-superseded categories of ``Paging'' and ``Cellular 
and Other Wireless Telecommunications.'' \44\ Under the present and 
prior categories, the SBA has deemed a wireless business to be small 
if it has 1,500 or fewer employees.\45\ 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.\46\ Of this

[[Page 40106]]

total, 804 firms had employment of 999 or fewer employees, and three 
firms had employment of 1,000 employees or more.\47\ 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.\48\ Of this total, 1,378 firms had employment of 999 or fewer 
employees, and 19 firms had employment of 1,000 employees or 
more.\49\ Thus, we estimate that the majority of wireless firms are 
small.
---------------------------------------------------------------------------

    \43\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210 
Wireless Telecommunications Categories (Except Satellite)''; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
    \44\ 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.
    \45\ 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).
    \46\ 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).
    \47\ 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.''
    \48\ 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).
    \49\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is for firms with ``1,000 
employees or more.''
---------------------------------------------------------------------------

    22. Internet Service Providers. The 2007 Economic Census places 
these providers, which includes voice over Internet protocol (VoIP) 
providers, in the category of All Other Telecommunications.\50\ The 
SBA small business size standard for such firms is: Those having 
annual average receipts of $25 million or less.\51\ The most current 
Census Bureau data on such entities, however, are the 2002 data for 
the previous census category \52\ called Internet Service Providers. 
The 2002 data show that there were 2,529 such firms that operated 
for the entire year.\53\ Of those, 2,437 firms had annual receipts 
of under $10 million, and an additional 47 firms had receipts of 
between $10 million and $24,999,999.\54\ Consequently, we estimate 
that the majority of ISP firms are small entities that may be 
affected by our action.
---------------------------------------------------------------------------

    \50\ U.S. Census Bureau, 2007 NAICS Definitions, ``517919 All 
Other Telecommunications''; http://www.census.gov/naics/2007/def/ND517919.HTM#N517919.
    \51\ 13 CFR 121.201, NAICS code 517919 (updated for inflation in 
2008).
    \52\ U.S. Census Bureau, ``2002 NAICS Definitions: 518111 
Internet Service Providers''; http://www.census.gov/epcd/naics02/def/NDEF518.HTM.
    \53\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 4, NAICS code 518111 (issued Nov. 2005).
    \54\ An additional 45 firms had receipts of $25 million or more.
---------------------------------------------------------------------------

    23. Common Carrier Paging. As noted, the SBA has developed a 
small business size standard for Wireless Telecommunications 
Carriers (except Satellite) firms within the broad economic census 
categories of ``Cellular and Other Wireless Telecommunications.'' 
\55\ Since 2007, the Census Bureau has placed wireless firms within 
this new, broad, economic census category.\56\ Prior to that time, 
such firms were within the now-superseded categories of ``Paging'' 
and ``Cellular and Other Wireless Telecommunications.'' \57\ Under 
the present and prior categories, the SBA has deemed a wireless 
business to be small if it has 1,500 or fewer employees.\58\ 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.\59\ Of 
this total, 804 firms had employment of 999 or fewer employees, and 
three firms had employment of 1,000 employees or more.\60\ 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.\61\ Of this total, 1,378 firms had employment of 999 or fewer 
employees, and 19 firms had employment of 1,000 employees or 
more.\62\ Thus, we estimate that the majority of wireless firms are 
small.
---------------------------------------------------------------------------

    \55\ 13 CFR 121.201, NAICS code 517212.
    \56\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210 
Wireless Telecommunications Categories (Except Satellite)''; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
    \57\ 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.
    \58\ 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).
    \59\ 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).
    \60\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is for firms with ``1,000 
employees or more.''
    \61\ 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).
    \62\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is for firms with ``1,000 
employees or more.''
---------------------------------------------------------------------------

    24. In addition, in the Paging Second Report and Order, the 
Commission adopted a size standard for ``small businesses'' for 
purposes of determining their eligibility for special provisions 
such as bidding credits and installment payments.\63\ A small 
business is an entity that, together with its affiliates and 
controlling principals, has average gross revenues not exceeding $15 
million for the preceding three years.\64\ The SBA has approved this 
definition.\65\ An auction of Metropolitan Economic Area (MEA) 
licenses commenced on February 24, 2000, and closed on March 2, 
2000. Of the 2,499 licenses auctioned, 985 were sold.\66\ Fifty-
seven companies claiming small business status won 440 licenses.\67\ 
An auction of MEA and Economic Area (EA) licenses commenced on 
October 30, 2001, and closed on December 5, 2001. Of the 15,514 
licenses auctioned, 5,323 were sold.\68\ One hundred thirty-two 
companies claiming small business status purchased 3,724 licenses. A 
third auction, consisting of 8,874 licenses in each of 175 EAs and 
1,328 licenses in all but three of the 51 MEAs commenced on May 13, 
2003, and closed on May 28, 2003. Seventy-seven bidders claiming 
small or very small business status won 2,093 licenses.\69\
---------------------------------------------------------------------------

    \63\ Revision of Part 22 and Part 90 of the Commission's Rules 
to Facilitate Future Development of Paging Systems, Second Report 
and Order, 12 FCC Rcd 2732, 2811-2812, paras. 178-181 (Paging Second 
Report and Order); see also Revision of Part 22 and Part 90 of the 
Commission's Rules to Facilitate Future Development of Paging 
Systems, Memorandum Opinion and Order on Reconsideration, 14 FCC Rcd 
10030, 10085-10088, paragraphs 98-107 (1999).
    \64\ Paging Second Report and Order, 12 FCC Rcd at 2811, 
paragraph 179.
    \65\ See Letter from Aida Alvarez, Administrator, SBA, to Amy 
Zoslov, Chief, Auctions and Industry Analysis Division, Wireless 
Telecommunications Bureau (``WTB''), FCC (Dec. 2, 1998) (Alvarez 
Letter 1998).
    \66\ See ``929 and 931 MHz Paging Auction Closes,'' Public 
Notice, 15 FCC Rcd 4858 (WTB 2000).
    \67\ See id.
    \68\ See ``Lower and Upper Paging Band Auction Closes,'' Public 
Notice, 16 FCC Rcd 21821 (WTB 2002).
    \69\ See ``Lower and Upper Paging Bands Auction Closes,'' Public 
Notice, 18 FCC Rcd 11154 (WTB 2003).
---------------------------------------------------------------------------

    25. Currently, there are approximately 74,000 Common Carrier 
Paging licenses. According to the most recent Trends in Telephone 
Service, 281 carriers reported that they were engaged in the 
provision of ``paging and messaging'' services.\70\ Of these, an 
estimated 279 have 1,500 or fewer employees and two have more than 
1,500 employees.\71\ We estimate that the majority of common carrier 
paging providers would qualify as small entities under the SBA 
definition.
---------------------------------------------------------------------------

    \70\ ``Trends in Telephone Service'' at Table 5.3.
    \71\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    26. Wireless Communications Services. This service can be used 
for fixed, mobile, radiolocation, and digital audio broadcasting 
satellite uses. The Commission defined ``small business'' for the 
wireless communications services (WCS) auction as an entity with 
average gross revenues of $40 million for each of the three 
preceding years, and a ``very small business'' as an entity with 
average gross revenues of $15 million for each of the three 
preceding years.\72\ The SBA has approved these definitions.\73\ The 
Commission auctioned geographic area licenses in the WCS service. In 
the auction, which commenced on April 15, 1997 and closed on April 
25, 1997, there were seven bidders that won 31 licenses that 
qualified as very small business entities, and one bidder that won 
one license that qualified as a small business entity.
---------------------------------------------------------------------------

    \72\ Amendment of the Commission's Rules to Establish Part 27, 
the Wireless Communications Service (WCS), Report and Order, 12 FCC 
Rcd 10785, 10879, para. 194 (1997).
    \73\ See Alvarez Letter 1998.
---------------------------------------------------------------------------

    27. 1670-1675 MHz Services. An auction for one license in the 
1670-1675 MHz band commenced on April 30, 2003 and closed the same 
day. One license was awarded. The winning bidder was not a small 
entity.
    28. Wireless Telephony. Wireless telephony includes cellular, 
personal communications services, and specialized mobile radio 
telephony carriers. As noted, the SBA has developed a small business 
size

[[Page 40107]]

standard for Wireless Telecommunications Carriers (except 
Satellite).\74\ Under the SBA small business size standard, a 
business is small if it has 1,500 or fewer employees.\75\ According 
to Trends in Telephone Service data, 434 carriers reported that they 
were engaged in wireless telephony.\76\ Of these, an estimated 222 
have 1,500 or fewer employees and 212 have more than 1,500 
employees.\77\ We have estimated that 222 of these are small under 
the SBA small business size standard.
---------------------------------------------------------------------------

    \74\ 13 CFR 121.201, NAICS code 517210.
    \75\ Id.
    \76\ ``Trends in Telephone Service'' at Table 5.3.
    \77\ ``Trends in Telephone Service'' at Table 5.3.
---------------------------------------------------------------------------

    29. Broadband Personal Communications Service. The broadband 
personal communications services (PCS) spectrum is divided into six 
frequency blocks designated A through F, and the Commission has held 
auctions for each block. The Commission has created a small business 
size standard for Blocks C and F as an entity that has average gross 
revenues of less than $40 million in the three previous calendar 
years.\78\ For Block F, an additional small business size standard 
for ``very small business'' was added and is defined as an entity 
that, together with its affiliates, has average gross revenues of 
not more than $15 million for the preceding three calendar 
years.\79\ These small business size standards, in the context of 
broadband PCS auctions, have been approved by the SBA.\80\ No small 
businesses within the SBA-approved small business size standards bid 
successfully for licenses in Blocks A and B. There were 90 winning 
bidders that qualified as small entities in the Block C auctions. A 
total of 93 ``small'' and ``very small'' business bidders won 
approximately 40 percent of the 1,479 licenses for Blocks D, E, and 
F.\81\ On March 23, 1999, the Commission reauctioned 155 C, D, E, 
and F Block licenses; there were 113 small business winning 
bidders.\82\
---------------------------------------------------------------------------

    \78\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7850-
7852, paras. 57-60 (1996) (PCS Report and Order); see also 47 CFR 
24.720(b).
    \79\ See PCS Report and Order, 11 FCC Rcd at 7852, para. 60.
    \80\ See Alvarez Letter 1998.
    \81\ FCC News, ``Broadband PCS, D, E and F Block Auction 
Closes,'' No. 71744 (rel. Jan. 14, 1997).
    \82\ See ``C, D, E, and F Block Broadband PCS Auction Closes,'' 
Public Notice, 14 FCC Rcd 6688 (WTB 1999).
---------------------------------------------------------------------------

    30. On January 26, 2001, the Commission completed the auction of 
422 C and F Broadband PCS licenses in Auction No. 35. Of the 35 
winning bidders in this auction, 29 qualified as ``small'' or ``very 
small'' businesses.\83\ Subsequent events, concerning Auction 35, 
including judicial and agency determinations, resulted in a total of 
163 C and F Block licenses being available for grant. On February 
15, 2005, the Commission completed an auction of 188 C block 
licenses and 21 F block licenses in Auction No. 58. There were 24 
winning bidders for 217 licenses.\84\ Of the 24 winning bidders, 16 
claimed small business status and won 156 licenses. On May 21, 2007, 
the Commission completed an auction of 33 licenses in the A, C, and 
F Blocks in Auction No. 71.\85\ Of the 14 winning bidders, six were 
designated entities.\86\
---------------------------------------------------------------------------

    \83\ See ``C and F Block Broadband PCS Auction Closes; Winning 
Bidders Announced,'' Public Notice, 16 FCC Rcd 2339 (2001).
    \84\ See ``Broadband PCS Spectrum Auction Closes; Winning 
Bidders Announced for Auction No. 58,'' Public Notice, 20 FCC Rcd 
3703 (2005).
    \85\ See ``Auction of Broadband PCS Spectrum Licenses Closes; 
Winning Bidders Announced for Auction No. 71,'' Public Notice, 22 
FCC Rcd 9247 (2007).
    \86\ Id.
---------------------------------------------------------------------------

    31. Narrowband Personal Communications Services. The Commission 
held an auction for Narrowband PCS licenses that commenced on July 
25, 1994, and closed on July 29, 1994. A second auction commenced on 
October 26, 1994 and closed on November 8, 1994. For purposes of the 
first two Narrowband PCS auctions, ``small businesses'' were 
entities with average gross revenues for the prior three calendar 
years of $40 million or less.\87\ Through these auctions, the 
Commission awarded a total of 41 licenses, 11 of which were obtained 
by four small businesses.\88\ To ensure meaningful participation by 
small business entities in future auctions, the Commission adopted a 
two-tiered small business size standard in the Narrowband PCS Second 
Report and Order.\89\ A ``small business'' is an entity that, 
together with affiliates and controlling interests, has average 
gross revenues for the three preceding years of not more than $40 
million.\90\ A ``very small business'' is an entity that, together 
with affiliates and controlling interests, has average gross 
revenues for the three preceding years of not more than $15 
million.\91\ The SBA has approved these small business size 
standards.\92\ A third auction commenced on October 3, 2001 and 
closed on October 16, 2001. Here, five bidders won 317 (Metropolitan 
Trading Areas and nationwide) licenses.\93\ Three of these claimed 
status as a small or very small entity and won 311 licenses.
---------------------------------------------------------------------------

    \87\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding Narrowband PCS, Third Memorandum Opinion 
and Order and Further Notice of Proposed Rulemaking, 10 FCC Rcd 175, 
196, para. 46 (1994).
    \88\ See ``Announcing the High Bidders in the Auction of ten 
Nationwide Narrowband PCS Licenses, Winning Bids Total 
$617,006,674,'' Public Notice, PNWL 94-004 (rel. Aug. 2, 1994); 
``Announcing the High Bidders in the Auction of 30 Regional 
Narrowband PCS Licenses; Winning Bids Total $490,901,787,'' Public 
Notice, PNWL 94-27 (rel. Nov. 9, 1994).
    \89\ Amendment of the Commission's Rules to Establish New 
Personal Communications Services, Narrowband PCS, Second Report and 
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd 
10456, 10476, para. 40 (2000) (Narrowband PCS Second Report and 
Order).
    \90\ Narrowband PCS Second Report and Order, 15 FCC Rcd at 
10476, para. 40.
    \91\ Id.
    \92\ See Alvarez Letter 1998.
    \93\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16 
FCC Rcd 18663 (WTB 2001).
---------------------------------------------------------------------------

    32. Lower 700 MHz Band Licenses. The Commission previously 
adopted criteria for defining three groups of small businesses for 
purposes of determining their eligibility for special provisions 
such as bidding credits.\94\ The Commission defined a ``small 
business'' as an entity that, together with its affiliates and 
controlling principals, has average gross revenues not exceeding $40 
million for the preceding three years.\95\ A ``very small business'' 
is defined as an entity that, together with its affiliates and 
controlling principals, has average gross revenues that are not more 
than $15 million for the preceding three years.\96\ Additionally, 
the lower 700 MHz Service had a third category of small business 
status for Metropolitan/Rural Service Area (``MSA/RSA'') licenses. 
The third category is ``entrepreneur,'' which is defined as an 
entity that, together with its affiliates and controlling 
principals, has average gross revenues that are not more than $3 
million for the preceding three years.\97\ The SBA approved these 
small size standards.\98\ An auction of 740 licenses (one license in 
each of the 734 MSAs/RSAs and one license in each of the six 
Economic Area Groupings (EAGs)) commenced on August 27, 2002, and 
closed on September 18, 2002. Of the 740 licenses available for 
auction, 484 licenses were sold to 102 winning bidders. Seventy-two 
of the winning bidders claimed small business, very small business 
or entrepreneur status and won a total of 329 licenses.\99\ A second 
auction commenced on May 28, 2003, and closed on June 13, 2003, and 
included 256 licenses: 5 EAG licenses and 476 Cellular Market Area 
licenses.\100\ Seventeen winning bidders claimed small or very small 
business status and won 60 licenses, and nine winning bidders 
claimed entrepreneur status and won 154 licenses.\101\ On July 26, 
2005, the Commission completed an auction of 5 licenses in the Lower 
700 MHz band (Auction No. 60). There were three winning bidders for 
five licenses. All three winning bidders claimed small business 
status.
---------------------------------------------------------------------------

    \94\ See Reallocation and Service Rules for the 698-746 MHz 
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC 
Rcd 1022 (2002) (Channels 52-59 Report and Order).
    \95\ See Channels 52-59 Report and Order, 17 FCC Rcd at 1087-88, 
paragraph 172.
    \96\ See id.
    \97\ See id., 17 FCC Rcd at 1088, paragraph 173.
    \98\  See Letter from Aida Alvarez, Administrator, SBA, to 
Thomas Sugrue, Chief, WTB, FCC (Aug. 10, 1999) (Alvarez Letter 
1999).
    \99\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice, 
17 FCC Rcd 17272 (WTB 2002).
    \100\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice, 
18 FCC Rcd 11873 (WTB 2003).
    \101\ See id.
---------------------------------------------------------------------------

    33. The Commission recently reexamined its rules governing the 
700 MHz band in the 700 MHz Second Report and Order.\102\ An

[[Page 40108]]

auction of 700 MHz licenses commenced January 24, 2008. For the 
Lower 700 MHz band, 176 licenses over Economic Areas in the A Block, 
734 licenses over Cellular Market Areas in the B Block, and 176 
licenses over EAs in the E Block are available for licensing.\103\ 
Winning bidders may be eligible for small business status (those 
with attributable average annual gross revenues that exceed $15 
million and do not exceed $40 million for the preceding three 
years), or very small business status (those with attributable 
average annual gross revenues that do not exceed $15 million for the 
preceding three years).
---------------------------------------------------------------------------

    \102\ Service Rules for the 698-746, 747-762 and 777-792 MHz 
Bands, WT Docket No. 06-150, Revision of the Commission's Rules to 
Ensure Compatibility with Enhanced 911 Emergency Calling Systems, CC 
Docket No. 94-102, Section 68.4(a) of the Commission's Rules 
Governing Hearing Aid-Compatible Telephones, WT Docket No. 01-309, 
Biennial Regulatory Review--Amendment of Parts 1, 22, 24, 27, and 90 
to Streamline and Harmonize Various Rules Affecting Wireless Radio 
Services, WT Docket 03-264, Former Nextel Communications, Inc. Upper 
700 MHz Guard Band Licenses and Revisions to Part 27 of the 
Commission's Rules, WT Docket No. 06-169, Implementing a Nationwide, 
Broadband, Interoperable Public Safety Network in the 700 MHz Band, 
PS Docket No. 06-229, Development of Operational, Technical and 
Spectrum Requirements for Meeting Federal, State and Local Public 
Safety Communications Requirements Through the Year 2010, WT Docket 
No. 96-86, Second Report and Order, FCC 07-132 (2007) (700 MHz 
Second Report and Order).
    \103\ See ``Auction of 700 MHz Band Licenses Scheduled for 
January 16, 2008; Comment Sought on Competitive Bidding Procedures 
For Auction 73,'' Public Notice, FCC Rcd 15004 (WTB 2007).
---------------------------------------------------------------------------

    34. Upper 700 MHz Band Licenses. In the 700 MHz Second Report 
and Order, the Commission revised its rules regarding Upper 700 MHz 
licenses. On January 24, 2008, the Commission commenced Auction 73 
in which several licenses in the Upper 700 MHz band are available 
for licensing: 12 licenses over Regional Economic Area Groupings 
(REAGs) in the C Block, and one nationwide license in the D 
Block.\104\ Winning bidders may be eligible for small business 
status (those with attributable average annual gross revenues that 
exceed $15 million and do not exceed $40 million for the preceding 
three years), or very small business status (those with attributable 
average annual gross revenues that do not exceed $15 million for the 
preceding three years.
---------------------------------------------------------------------------

    \104\ See id.
---------------------------------------------------------------------------

    35. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band 
Order, the Commission adopted size standards for ``small 
businesses'' and ``very small businesses'' for purposes of 
determining their eligibility for special provisions such as bidding 
credits and installment payments.\105\ A small business in this 
service is an entity that, together with its affiliates and 
controlling principals, has average gross revenues not exceeding $40 
million for the preceding three years.\106\ Additionally, a very 
small business is an entity that, together with its affiliates and 
controlling principals, has average gross revenues that are not more 
than $15 million for the preceding three years.\107\ SBA approval of 
these definitions is not required.\108\ An auction of 52 Major 
Economic Area (MEA) licenses commenced on September 6, 2000, and 
closed on September 21, 2000.\109\ Of the 104 licenses auctioned, 96 
licenses were sold to nine bidders. Five of these bidders were small 
businesses that won a total of 26 licenses. A second auction of 700 
MHz Guard Band licenses commenced on February 13, 2001, and closed 
on February 21, 2001. All eight of the licenses auctioned were sold 
to three bidders. One of these bidders was a small business that won 
a total of two licenses.\110\
---------------------------------------------------------------------------

    \105\ See Service Rules for the 746-764 MHz Bands, and Revisions 
to Part 27 of the Commission's Rules, Second Report and Order, 15 
FCC Rcd 5299 (2000) (746-764 MHz Band Second Report and Order).
    \106\ See 746-764 MHz Band Second Report and Order, 15 FCC Rcd 
at 5343, para. 108.
    \107\ See id.
    \108\ See id., 15 FCC Rcd 5299, 5343, para. 108 n.246 (for the 
746-764 MHz and 776-794 MHz bands, the Commission is exempt from 15 
U.S.C. 632, which requires Federal agencies to obtain SBA approval 
before adopting small business size standards).
    \109\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders 
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
    \110\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders 
Announced,'' Public Notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------

    36. Specialized Mobile Radio. The Commission awards ``small 
entity'' bidding credits in auctions for Specialized Mobile Radio 
(SMR) geographic area licenses in the 800 MHz and 900 MHz bands to 
firms that had revenues of no more than $15 million in each of the 
three previous calendar years.\111\ The Commission awards ``very 
small entity'' bidding credits to firms that had revenues of no more 
than $3 million in each of the three previous calendar years.\112\ 
The SBA has approved these small business size standards for the 900 
MHz Service.\113\ The Commission has held auctions for geographic 
area licenses in the 800 MHz and 900 MHz bands. The 900 MHz SMR 
auction began on December 5, 1995, and closed on April 15, 1996. 
Sixty bidders claiming that they qualified as small businesses under 
the $15 million size standard won 263 geographic area licenses in 
the 900 MHz SMR band. The 800 MHz SMR auction for the upper 200 
channels began on October 28, 1997, and was completed on December 8, 
1997. Ten bidders claiming that they qualified as small businesses 
under the $15 million size standard won 38 geographic area licenses 
for the upper 200 channels in the 800 MHz SMR band.\114\ A second 
auction for the 800 MHz band was held on January 10, 2002 and closed 
on January 17, 2002 and included 23 BEA licenses. One bidder 
claiming small business status won five licenses.\115\
---------------------------------------------------------------------------

    \111\ 47 CFR 90.814(b)(1).
    \112\ 47 CFR 90.814(b)(1).
    \113\ See Alvarez Letter 1999.
    \114\ See ``Correction to Public Notice DA 96-586 `FCC Announces 
Winning Bidders in the Auction of 1020 Licenses to Provide 900 MHz 
SMR in Major Trading Areas,' '' Public Notice, 18 FCC Rcd 18367 (WTB 
1996).
    \115\ See ``Multi-Radio Service Auction Closes,'' Public Notice, 
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------

    37. The auction of the 1,053 800 MHz SMR geographic area 
licenses for the General Category channels began on August 16, 2000, 
and was completed on September 1, 2000. Eleven bidders won 108 
geographic area licenses for the General Category channels in the 
800 MHz SMR band qualified as small businesses under the $15 million 
size standard.\116\ In an auction completed on December 5, 2000, a 
total of 2,800 Economic Area licenses in the lower 80 channels of 
the 800 MHz SMR service were awarded.\117\ Of the 22 winning 
bidders, 19 claimed small business status and won 129 licenses. 
Thus, combining all three auctions, 40 winning bidders for 
geographic licenses in the 800 MHz SMR band claimed status as small 
business.
---------------------------------------------------------------------------

    \116\ See ``800 MHz Specialized Mobile Radio (SMR) Service 
General Category (851-854 MHz) and Upper Band (861-865 MHz) Auction 
Closes; Winning Bidders Announced,'' Public Notice, 15 FCC Rcd 17162 
(2000).
    \117\ See, ``800 MHz SMR Service Lower 80 Channels Auction 
Closes; Winning Bidders Announced,'' Public Notice, 16 FCC Rcd 1736 
(2000).
---------------------------------------------------------------------------

    38. In addition, there are numerous incumbent site-by-site SMR 
licensees and licensees with extended implementation authorizations 
in the 800 and 900 MHz bands. We do not know how many firms provide 
800 MHz or 900 MHz geographic area SMR pursuant to extended 
implementation authorizations, nor how many of these providers have 
annual revenues of no more than $15 million. One firm has over $15 
million in revenues. In addition, we do not know how many of these 
firms have 1500 or fewer employees.\118\ We assume, for purposes of 
this analysis, that all of the remaining existing extended 
implementation authorizations are held by small entities, as that 
small business size standard is approved by the SBA.
---------------------------------------------------------------------------

    \118\ See generally 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

    39. 220 MHz Radio Service--Phase I Licensees. The 220 MHz 
service has both Phase I and Phase II licenses. Phase I licensing 
was conducted by lotteries in 1992 and 1993. There are approximately 
1,515 such non-nationwide licensees and four nationwide licensees 
currently authorized to operate in the 220 MHz band. The Commission 
has not developed a definition of small entities specifically 
applicable to such incumbent 220 MHz Phase I licensees. To estimate 
the number of such licensees that are small businesses, we apply the 
small business size standard under the SBA rules applicable to 
Wireless Telecommunications Carriers (except Satellite).\119\ This 
category provides that a small business is a wireless company 
employing no more than 1,500 persons.\120\ The Commission estimates 
that most such licensees are small businesses under the SBA's small 
business standard.
---------------------------------------------------------------------------

    \119\ Id.
    \120\ Id.
---------------------------------------------------------------------------

    40. 220 MHz Radio Service--Phase II Licensees. The 220 MHz 
service has both Phase I and Phase II licenses. The Phase II 220 MHz 
service is a new service, and is subject to spectrum auctions. In 
the 220 MHz Third Report and Order, the Commission adopted a small 
business size standard for defining ``small'' and ``very small'' 
businesses for purposes of determining their eligibility for special 
provisions such as bidding credits and installment payments.\121\ 
This small business standard indicates that a ``small business'' is 
an entity that, together

[[Page 40109]]

with its affiliates and controlling principals, has average gross 
revenues not exceeding $15 million for the preceding three 
years.\122\ A ``very small business'' is defined as an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues that do not exceed $3 million for the preceding three 
years.\123\ The SBA has approved these small size standards.\124\ 
Auctions of Phase II licenses commenced on September 15, 1998, and 
closed on October 22, 1998.\125\ In the first auction, 908 licenses 
were auctioned in three different-sized geographic areas: three 
nationwide licenses, 30 Regional Economic Area Group (EAG) Licenses, 
and 875 Economic Area (EA) Licenses. Of the 908 licenses auctioned, 
693 were sold.\126\ Thirty-nine small businesses won 373 licenses in 
the first 220 MHz auction. A second auction included 225 licenses: 
216 EA licenses and 9 EAG licenses. Fourteen companies claiming 
small business status won 158 licenses.\127\ A third auction 
included four licenses: 2 BEA licenses and 2 EAG licenses in the 220 
MHz Service. No small or very small business won any of these 
licenses.\128\ The Commission conducted a fourth auction in 2007 
with three of the five winning bidders claiming small or very small 
business status.\129\
---------------------------------------------------------------------------

    \121\ Amendment of Part 90 of the Commission's Rules to Provide 
For the Use of the 220-222 MHz Band by the Private Land Mobile Radio 
Service, Third Report and Order, 12 FCC Rcd 10943, 11068-70, paras. 
291-295 (1997).
    \122\ Id. at 11068, para. 291.
    \123\ Id.
    \124\ See Letter from Aida Alvarez, Administrator, SBA, to 
Daniel Phythyon, Chief, WTB, FCC (Jan. 6, 1998) (Alvarez to Phythyon 
Letter 1998).
    \125\ See generally ``220 MHz Service Auction Closes,'' Public 
Notice, 14 FCC Rcd 605 (1998).
    \126\ See ``FCC Announces It is Prepared to Grant 654 Phase II 
220 MHz Licenses After Final Payment is Made,'' Public Notice, 14 
FCC Rcd 1085 (1999).
    \127\ See ``Phase II 220 MHz Service Spectrum Auction Closes,'' 
Public Notice, 14 FCC Rcd 11218 (1999).
    \128\ See ``Multi-Radio Service Auction Closes,'' Public Notice, 
17 FCC Rcd 1446 (2002).
    \129\ See ``Auction of Phase II 220 MHz Service Spectrum 
Licenses Closes,'' Public Notice, 22 FCC Rcd 11573 (WTB 2007).
---------------------------------------------------------------------------

    41. Private Land Mobile Radio (PLMR). PLMR systems serve an 
essential role in a range of industrial, business, land 
transportation, and public safety activities. These radios are used 
by companies of all sizes operating in all U.S. business categories, 
and are often used in support of the licensee's primary (non-
telecommunications) business operations. For the purpose of 
determining whether a licensee of a PLMR system is a small business 
as defined by the SBA, we use the broad census category, Wireless 
Telecommunications Carriers (except Satellite). This definition 
provides that a small entity is any such entity employing no more 
than 1,500 persons.\130\ The Commission does not require PLMR 
licensees to disclose information about number of employees, so the 
Commission does not have information that could be used to determine 
how many PLMR licensees constitute small entities under this 
definition. We note that PLMR licensees generally use the licensed 
facilities in support of other business activities, and therefore, 
it would also be helpful to assess PLMR licensees under the 
standards applied to the particular industry subsector to which the 
licensee belongs.\131\
---------------------------------------------------------------------------

    \130\ See 13 CFR 121.201, NAICS code 517210.
    \131\ See generally 13 CFR 121.201.
---------------------------------------------------------------------------

    42. The Commission's 1994 Annual Report on PLMRs \132\ indicates 
that at the end of fiscal year 1994, there were 1,087,267 licensees 
operating 12,481,989 transmitters in the PLMR bands below 512 MHz. 
We note that any entity engaged in a commercial activity is eligible 
to hold a PLMR license, and that the revised rules in this context 
could therefore potentially impact small entities covering a great 
variety of industries.
---------------------------------------------------------------------------

    \132\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at paragraph 116.
---------------------------------------------------------------------------

    43. Fixed Microwave Services. Fixed microwave services include 
common carrier,\133\ private operational-fixed,\134\ and broadcast 
auxiliary radio services.\135\ At present, there are approximately 
22,015 common carrier fixed licensees and 61,670 private 
operational-fixed licensees and broadcast auxiliary radio licensees 
in the microwave services. The Commission has not created a size 
standard for a small business specifically with respect to fixed 
microwave services. For purposes of this analysis, the Commission 
uses the SBA small business size standard for the category Wireless 
Telecommunications Carriers (except Satellite), which is 1,500 or 
fewer employees.\136\ The Commission does not have data specifying 
the number of these licensees that have no more than 1,500 
employees, and thus are unable at this time to estimate with greater 
precision the number of fixed microwave service licensees that would 
qualify as small business concerns under the SBA's small business 
size standard. Consequently, the Commission estimates that there are 
22,015 or fewer common carrier fixed licensees and 61,670 or fewer 
private operational-fixed licensees and broadcast auxiliary radio 
licensees in the microwave services that may be small and may be 
affected by the rules and policies proposed herein. We note, 
however, that the common carrier microwave fixed licensee category 
includes some large entities.
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    \133\ See 47 CFR 101 et seq. for common carrier fixed microwave 
services (except Multipoint Distribution Service).
    \134\ Persons eligible under parts 80 and 90 of the Commission's 
Rules can use Private Operational-Fixed Microwave services. See 47 
CFR Parts 80 and 90. Stations in this service are called 
operational-fixed to distinguish them from common carrier and public 
fixed stations. Only the licensee may use the operational-fixed 
station, and only for communications related to the licensee's 
commercial, industrial, or safety operations.
    \135\ Auxiliary Microwave Service is governed by Part 74 of 
Title 47 of the Commission's rules. See 47 CFR Part 74. This service 
is available to licensees of broadcast stations and to broadcast and 
cable network entities. Broadcast auxiliary microwave stations are 
used for relaying broadcast television signals from the studio to 
the transmitter, or between two points such as a main studio and an 
auxiliary studio. The service also includes mobile television 
pickups, which relay signals from a remote location back to the 
studio.
    \136\ 13 CFR 121.201, NAICS code 517210.
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    44. 39 GHz Service. The Commission created a special small 
business size standard for 39 GHz licenses--an entity that has 
average gross revenues of $40 million or less in the three previous 
calendar years.\137\ An additional size standard for ``very small 
business'' is: An entity that, together with affiliates, has average 
gross revenues of not more than $15 million for the preceding three 
calendar years.\138\ The SBA has approved these small business size 
standards.\139\ The auction of the 2,173 39 GHz licenses began on 
April 12, 2000 and closed on May 8, 2000. The 18 bidders who claimed 
small business status won 849 licenses.
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    \137\ See Amendment of the Commission's Rules Regarding the 
37.0-38.6 GHz and 38.6-40.0 GHz Bands, ET Docket No. 95-183, Report 
and Order, 12 FCC Rcd 18600 (1997).
    \138\ Id.
    \139\ See Letter from Aida Alvarez, Administrator, SBA, to 
Kathleen O'Brien Ham, Chief, Auctions and Industry Analysis 
Division, WTB, FCC (Feb. 4, 1998); See Letter from Hector Barreto, 
Administrator, SBA, to Margaret Wiener, Chief, Auctions and Industry 
Analysis Division, WTB, FCC (Jan. 18, 2002).
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    45. Local Multipoint Distribution Service. Local Multipoint 
Distribution Service (LMDS) is a fixed broadband point-to-multipoint 
microwave service that provides for two-way video 
telecommunications.\140\ The auction of the 986 LMDS licenses began 
on February 18, 1998 and closed on March 25, 1998. The Commission 
established a small business size standard for LMDS licenses as an 
entity that has average gross revenues of less than $40 million in 
the three previous calendar years.\141\ An additional small business 
size standard for ``very small business'' was added as an entity 
that, together with its affiliates, has average gross revenues of 
not more than $15 million for the preceding three calendar 
years.\142\ The SBA has approved these small business size standards 
in the context of LMDS auctions.\143\ There were 93 winning bidders 
that qualified as small entities in the LMDS auctions. A total of 93 
small and very small business bidders won approximately 277 A Block 
licenses and 387 B Block licenses. On March 27, 1999, the Commission 
re-auctioned 161 licenses; there were 32 small and very small 
businesses winning that won 119 licenses.
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    \140\ See Rulemaking to Amend Parts 1, 2, 21, 25, of the 
Commission's Rules to Redesignate the 27.5-29.5 GHz Frequency Band, 
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and 
Policies for Local Multipoint Distribution Service and for Fixed 
Satellite Services, Second Report and Order, Order on 
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC 
Rcd 12545, 12689-90, paragraph 348 (1997) (LMDS Second Report and 
Order).
    \141\ See LMDS Second Report and Order, 12 FCC Rcd at 12689-90, 
paragraph 348.
    \142\ See id.
    \143\  See Alvarez to Phythyon Letter 1998.
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    46. 218-219 MHz Service. The first auction of 218-219 MHz 
(previously referred to as the Interactive and Video Data Service or 
IVDS) spectrum resulted in 178 entities winning licenses for 594 
Metropolitan Statistical Areas (MSAs).\144\ Of the 594 licenses, 567 
were won by 167 entities qualifying as a small business. For that 
auction, the Commission defined a small

[[Page 40110]]

business as an entity that, together with its affiliates, has no 
more than a $6 million net worth and, after federal income taxes 
(excluding any carry over losses), has no more than $2 million in 
annual profits each year for the previous two years.\145\ In the 
218-219 MHz Report and Order and Memorandum Opinion and Order, we 
defined a small business as an entity that, together with its 
affiliates and persons or entities that hold interests in such an 
entity and their affiliates, has average annual gross revenues not 
exceeding $15 million for the preceding three years.\146\ A very 
small business is defined as an entity that, together with its 
affiliates and persons or entities that hold interests in such an 
entity and its affiliates, has average annual gross revenues not 
exceeding $3 million for the preceding three years.\147\ The SBA has 
approved of these definitions.\148\ A subsequent auction is not yet 
scheduled. Given the success of small businesses in the previous 
auction, and the prevalence of small businesses in the subscription 
television services and message communications industries, we assume 
for purposes of this analysis that in future auctions, many, and 
perhaps most, of the licenses may be awarded to small businesses.
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    \144\ See ``Interactive Video and Data Service (IVDS) 
Applications Accepted for Filing,'' Public Notice, 9 FCC Rcd 6227 
(1994).
    \145\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330 
(1994).
    \146\ Amendment of Part 95 of the Commission's Rules to Provide 
Regulatory Flexibility in the 218-219 MHz Service, Report and Order 
and Memorandum Opinion and Order, 15 FCC Rcd 1497 (1999).
    \147\ Id.
    \148\  See Alvarez to Phythyon Letter 1998.
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    47. Location and Monitoring Service (LMS). Multilateration LMS 
systems use non-voice radio techniques to determine the location and 
status of mobile radio units. For purposes of auctioning LMS 
licenses, the Commission has defined ``small business'' as an entity 
that, together with controlling interests and affiliates, has 
average annual gross revenues for the preceding three years not 
exceeding $15 million.\149\ A ``very small business'' is defined as 
an entity that, together with controlling interests and affiliates, 
has average annual gross revenues for the preceding three years not 
exceeding $3 million.\150\ These definitions have been approved by 
the SBA.\151\ An auction for LMS licenses commenced on February 23, 
1999, and closed on March 5, 1999. Of the 528 licenses auctioned, 
289 licenses were sold to four small businesses.
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    \149\ Amendment of Part 90 of the Commission's Rules to Adopt 
Regulations for Automatic Vehicle Monitoring Systems, Second Report 
and Order, 13 FCC Rcd 15182, 15192, paragraph 20 (1998) (Automatic 
Vehicle Monitoring Systems Second Report and Order); see also 47 CFR 
90.1103.
    \150\ Automatic Vehicle Monitoring Systems Second Report and 
Order, 13 FCC Rcd at 15192, para. 20; see also 47 CFR 90.1103.
    \151\ See Alvarez Letter 1998.
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    48. Rural Radiotelephone Service. The Commission has not adopted 
a size standard for small businesses specific to the Rural 
Radiotelephone Service.\152\ A significant subset of the Rural 
Radiotelephone Service is the Basic Exchange Telephone Radio System 
(BETRS).\153\ In the present context, we will use the SBA's small 
business size standard applicable to Wireless Telecommunications 
Carriers (except Satellite), i.e., an entity employing no more than 
1,500 persons.\154\ There are approximately 1,000 licensees in the 
Rural Radiotelephone Service, and the Commission estimates that 
there are 1,000 or fewer small entity licensees in the Rural 
Radiotelephone Service that may be affected by the rules and 
policies proposed herein.
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    \152\ The service is defined in section 22.99 of the 
Commission's rules, 47 CFR 22.99.
    \153\ BETRS is defined in 22.757 and 22.759 of the Commission's 
rules, 47 CFR 22.757 and 22.759.
    \154\ 13 CFR 121.201, NAICS code 517210.
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    49. Air-Ground Radiotelephone Service.\155\ The Commission has 
previously used the SBA's small business definition applicable to 
Wireless Telecommunications Carriers (except Satellite), i.e., an 
entity employing no more than 1,500 persons.\156\ There are 
approximately 100 licensees in the Air-Ground Radiotelephone 
Service, and under that definition, we estimate that almost all of 
them qualify as small entities under the SBA definition. For 
purposes of assigning Air-Ground Radiotelephone Service licenses 
through competitive bidding, the Commission has defined ``small 
business'' as an entity that, together with controlling interests 
and affiliates, has average annual gross revenues for the preceding 
three years not exceeding $40 million.\157\ A ``very small 
business'' is defined as an entity that, together with controlling 
interests and affiliates, has average annual gross revenues for the 
preceding three years not exceeding $15 million.\158\ These 
definitions were approved by the SBA.\159\ In May 2006, the 
Commission completed an auction of nationwide commercial Air-Ground 
Radiotelephone Service licenses in the 800 MHz band (Auction No. 
65). On June 2, 2006, the auction closed with two winning bidders 
winning two Air-Ground Radiotelephone Services licenses. Neither of 
the winning bidders claimed small business status.
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    \155\ The service is defined in section 22.99 of the 
Commission's rules, 47 CFR 22.99.
    \156\ 13 CFR 121.201, NAICS codes 517210.
    \157\ Amendment of Part 22 of the Commission's Rules to Benefit 
the Consumers of Air-Ground Telecommunications Services, Biennial 
Regulatory Review--Amendment of Parts 1, 22, and 90 of the 
Commission's Rules, Amendment of Parts 1 and 22 of the Commission's 
Rules to Adopt Competitive Bidding Rules for Commercial and General 
Aviation Air-Ground Radiotelephone Service, WT Docket Nos. 03-103 
and 05-42, Order on Reconsideration and Report and Order, 20 FCC Rcd 
19663, paragraphs 28-42 (2005).
    \158\ Id.
    \159\ See Letter from Hector V. Barreto, Administrator, SBA, to 
Gary D. Michaels, Deputy Chief, Auctions and Spectrum Access 
Division, WTB, FCC (Sept. 19, 2005).
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    50. Aviation and Marine Radio Services. There are approximately 
26,162 aviation, 34,555 marine (ship), and 3,296 marine (coast) 
licensees.\160\ The Commission has not developed a small business 
size standard specifically applicable to all licensees. For purposes 
of this analysis, we will use the SBA small business size standard 
for the category Wireless Telecommunications Carriers (except 
Satellite), which is 1,500 or fewer employees.\161\ We are unable to 
determine how many of those licensed fall under this standard. For 
purposes of our evaluations in this analysis, we estimate that there 
are up to approximately 62,969 licensees that are small businesses 
under the SBA standard.\162\ In December 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 this 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.\163\ Further, the Commission made available 
Automated Maritime Telecommunications System (AMTS) licenses in 
Auctions 57 and 61.\164\ Winning bidders could claim status as a 
very small business or a very small business. A very small business 
for this service is defined as an entity with attributed average 
annual gross revenues that do not exceed $3 million for the 
preceding three years, and a small business is defined as an entity 
with attributed average annual gross revenues of more than $3 
million but less than $15 million for the preceding three 
years.\165\ Three of the winning bidders in Auction 57 qualified as 
small or very small businesses, while three winning entities in 
Auction 61 qualified as very small businesses.
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    \160\ Vessels that are not required by law to carry a radio and 
do not make international voyages or communications are not required 
to obtain an individual license. See Amendment of Parts 80 and 87 of 
the Commission's rules to Permit Operation of Certain Domestic Ship 
and Aircraft Radio Stations Without Individual Licenses, Report and 
Order, WT Docket No. 96-82, 11 FCC Rcd 14849 (1996).
    \161\ 13 CFR 121.201, NAICS code 517210.
    \162\ A licensee may have a license in more than one category.
    \163\ Amendment of the Commission's Rules Concerning Maritime 
Communications, PR Docket No. 92-257, Third Report and Order and 
Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998).
    \164\ See ``Automated Maritime Telecommunications System 
Spectrum Auction Scheduled for September 15, 2004, Notice and Filing 
Requirements, Minimum Opening Bids, Upfront Payments and Other 
Auction Procedures,'' Public Notice, 19 FCC Rcd 9518 (WTB 2004); 
``Auction of Automated Maritime Telecommunications System Licenses 
Scheduled for August 3, 2005, Notice and Filing Requirements, 
Minimum Opening Bids, Upfront Payments and Other Auction Procedures 
for Auction No. 61,'' Public Notice, 20 FCC Rcd 7811 (WTB 2005).
    \165\ 47 CFR 80.1252.
---------------------------------------------------------------------------

    51. Offshore Radiotelephone Service. This service operates on 
several ultra high frequencies (UHF) television broadcast channels 
that are not used for television broadcasting in the coastal areas 
of states bordering the Gulf of Mexico.\166\ There is presently 1 
licensee in this service. We do not have information whether that 
licensee would qualify as small under the SBA's small

[[Page 40111]]

business size standard for Wireless Telecommunications Carriers 
(except Satellite) services.\167\ Under that SBA small business size 
standard, a business is small if it has 1,500 or fewer 
employees.\168\
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    \166\ This service is governed by Subpart I of Part 22 of the 
Commission's rules. See 47 CFR 22.1001-22.1037.
    \167\ 13 CFR 121.201, NAICS code 517210.
    \168\ Id.
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    52. Multiple Address Systems (MAS). Entities using MAS spectrum, 
in general, fall into two categories: (1) Those using the spectrum 
for profit-based uses, and (2) those using the spectrum for private 
internal uses. With respect to the first category, the Commission 
defines ``small entity'' for MAS licenses as an entity that has 
average gross revenues of less than $15 million in the three 
previous calendar years.\169\ ``Very small business'' is defined as 
an entity that, together with its affiliates, has average gross 
revenues of not more than $3 million for the preceding three 
calendar years.\170\ The SBA has approved of these definitions.\171\ 
The majority of these entities will most likely be licensed in bands 
where the Commission has implemented a geographic area licensing 
approach that would require the use of competitive bidding 
procedures to resolve mutually exclusive applications. The 
Commission's licensing database indicates that, as of January 20, 
1999, there were a total of 8,670 MAS station authorizations. Of 
these, 260 authorizations were associated with common carrier 
service. In addition, an auction for 5,104 MAS licenses in 176 EAs 
began November 14, 2001, and closed on November 27, 2001.\172\ Seven 
winning bidders claimed status as small or very small businesses and 
won 611 licenses. On May 18, 2005, the Commission completed an 
auction (Auction No. 59) of 4,226 MAS licenses in the Fixed 
Microwave Services from the 928/959 and 932/941 MHz bands. Twenty-
six winning bidders won a total of 2,323 licenses. Of the 26 winning 
bidders in this auction, five claimed small business status and won 
1,891 licenses.
---------------------------------------------------------------------------

    \169\ See Amendment of the Commission's Rules Regarding Multiple 
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, 
paragraph 123 (2000).
    \170\ Id.
    \171\ See Alvarez Letter 1999.
    \172\ See ``Multiple Address Systems Spectrum Auction Closes,'' 
Public Notice, 16 FCC Rcd 21011 (2001).
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    53. With respect to the second category, which consists of 
entities that use, or seek to use, MAS spectrum to accommodate 
internal communications needs, we note that MAS serves an essential 
role in a range of industrial, safety, business, and land 
transportation activities. MAS radios are used by companies of all 
sizes, operating in virtually all U.S. business categories, and by 
all types of public safety entities. For the majority of private 
internal users, the small business size standard developed by the 
SBA would be more appropriate. The applicable size standard in this 
instance appears to be that of Wireless Telecommunications Carriers 
(except Satellite). This definition provides that a small entity is 
any such entity employing no more than 1,500 persons.\173\ The 
Commission's licensing database indicates that, as of January 20, 
1999, of the 8,670 total MAS station authorizations, 8,410 
authorizations were for private radio service, and of these, 1,433 
were for private land mobile radio service.
---------------------------------------------------------------------------

    \173\ See 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

    54. 1.4 GHz Band Licensees. The Commission conducted an auction 
of 64 1.4 GHz band licenses, beginning on February 7, 2007,\174\ and 
closing on March 8, 2007.\175\ In that auction, the Commission 
defined ``small business'' as an entity that, together with its 
affiliates and controlling interests, had average gross revenues 
that exceed $15 million but do not exceed $40 million for the 
preceding three years, and a ``very small business'' as an entity 
that, together with its affiliates and controlling interests, has 
had average annual gross revenues not exceeding $15 million for the 
preceding three years.\176\ Neither of the two winning bidders 
sought designated entity status.\177\
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    \174\ See ``Auction of 1.4 GHz Bands Licenses Scheduled for 
February 7, 2007,'' Public Notice, 21 FCC Rcd 12393 (WTB 2006).
    \175\ See ``Auction of 1.4 GHz Band Licenses Closes; Winning 
Bidders Announced for Auction No. 69,'' Public Notice, 22 FCC Rcd 
4714 (2007) (Auction No. 69 Closing PN).
    \176\ Auction No. 69 Closing PN, Attachment C.
    \177\ See Auction No. 69 Closing PN.
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    55. Incumbent 24 GHz Licensees. This analysis may affect 
incumbent licensees who were relocated to the 24 GHz band from the 
18 GHz band, and applicants who wish to provide services in the 24 
GHz band. The applicable SBA small business size standard is that of 
Wireless Telecommunications Carriers (except Satellite). This 
category provides that such a company is small if it employs no more 
than 1,500 persons.\178\ The broader census data notwithstanding, we 
believe that there are only two licensees in the 24 GHz band that 
were relocated from the 18 GHz band, Teligent \179\ and TRW, Inc. It 
is our understanding that Teligent and its related companies have 
fewer than 1,500 employees, though this may change in the future. 
TRW is not a small entity. There are approximately 122 licensees in 
the Rural Radiotelephone Service, and the Commission estimates that 
there are 122 or fewer small entity licensees in the Rural 
Radiotelephone Service that may be affected by the rules and 
policies proposed herein.
---------------------------------------------------------------------------

    \178\ 13 CFR 121.201, NAICS code 517210.
    \179\ Teligent acquired the DEMS licenses of FirstMark, the only 
licensee other than TRW in the 24 GHz band whose license has been 
modified to require relocation to the 24 GHz band.
---------------------------------------------------------------------------

    56. Future 24 GHz Licensees. With respect to new applicants in 
the 24 GHz band, we have defined ``small business'' as an entity 
that, together with controlling interests and affiliates, has 
average annual gross revenues for the three preceding years not 
exceeding $15 million.\180\ ``Very small business'' in the 24 GHz 
band is defined as an entity that, together with controlling 
interests and affiliates, has average gross revenues not exceeding 
$3 million for the preceding three years.\181\ The SBA has approved 
these definitions.\182\ The Commission will not know how many 
licensees will be small or very small businesses until the auction, 
if required, is held.
---------------------------------------------------------------------------

    \180\ Amendments to Parts 1, 2, 87 and 101 of the Commission's 
Rules To License Fixed Services at 24 GHz, Report and Order, 15 FCC 
Rcd 16934, 16967, paragraph 77 (2000) (24 GHz Report and Order); see 
also 47 CFR 101.538(a)(2).
    \181\ 24 GHz Report and Order, 15 FCC Rcd at 16967, para. 77; 
see also 47 CFR 101.538(a)(1).
    \182\ See Letter from Gary M. Jackson, Assistant Administrator, 
SBA, to Margaret W. Wiener, Deputy Chief, Auctions and Industry 
Analysis Division, WTB, FCC (July 28, 2000).
---------------------------------------------------------------------------

    57. Broadband Radio Service. Broadband Radio Service systems, 
previously referred to as Multipoint Distribution Service (MDS) and 
Multichannel Multipoint Distribution Service (MMDS) systems, and 
``wireless cable,'' transmit video programming to subscribers and 
provide two-way high speed data operations using the microwave 
frequencies of the Broadband Radio Service (BRS) and Educational 
Broadband Service (EBS) (previously referred to as the Instructional 
Television Fixed Service (ITFS)).\183\ In connection with the 1996 
BRS auction, the Commission established a small business size 
standard as an entity that had annual average gross revenues of no 
more than $40 million in the previous three calendar years.\184\ The 
BRS auctions resulted in 67 successful bidders obtaining licensing 
opportunities for 493 Basic Trading Areas (BTAs). Of the 67 auction 
winners, 61 met the definition of a small business. BRS also 
includes licensees of stations authorized prior to the auction. At 
this time, we estimate that of the 61 small business BRS auction 
winners, 48 remain small business licensees. In addition to the 48 
small businesses that hold BTA authorizations, there are 
approximately 392 incumbent BRS licensees that are considered small 
entities.\185\ After adding the number of small business auction 
licensees to the number of incumbent licensees not already counted, 
we find that there are currently approximately 440 BRS licensees 
that are defined as small businesses under either the SBA or the 
Commission's rules.
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    \183\ Amendment of Parts 21 and 74 of the Commission's Rules 
with Regard to Filing Procedures in the Multipoint Distribution 
Service and in the Instructional Television Fixed Service and 
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, MM Docket No. 94-131 and PP Docket No. 93-253, 
Report and Order, 10 FCC Rcd 9589, 9593, paragraph 7 (1995) (MDS 
Auction R&O).
    \184\ 47 CFR 21.961(b)(1).
    \185\ 47 U.S.C. 309(j). Hundreds of stations were licensed to 
incumbent MDS licensees prior to implementation of Section 309(j) of 
the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business 
size standard.
---------------------------------------------------------------------------

    58. In addition, the SBA's Cable Television Distribution 
Services small business size standard is applicable to EBS. There 
are presently 2,032 EBS licensees. All but 100 of these licenses are 
held by educational institutions. Educational institutions are 
included in this analysis as small entities.\186\ Thus, we estimate 
that at least 1,932 licensees are small businesses. Since 2007, 
Cable Television Distribution Services have been defined within the 
broad economic

[[Page 40112]]

census category of Wired Telecommunications Carriers; that category 
is defined as follows: ``This industry comprises establishments 
primarily engaged in operating and/or providing access to 
transmission facilities and infrastructure that they own and/or 
lease for the transmission of voice, data, text, sound, and video 
using wired telecommunications networks. Transmission facilities may 
be based on a single technology or a combination of technologies.'' 
\187\ The SBA has developed a small business size standard for this 
category, which is: all such firms having 1,500 or fewer employees. 
To gauge small business prevalence for these cable services we must, 
however, use current census data that are based on the previous 
category of Cable and Other Program Distribution and its associated 
size standard; that size standard was: All such firms having $13.5 
million or less in annual receipts.\188\ According to Census Bureau 
data for 2002, there were a total of 1,191 firms in this previous 
category that operated for the entire year.\189\ 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.\190\ 
Thus, the majority of these firms can be considered small.
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    \186\ The term ``small entity'' within SBREFA applies to small 
organizations (nonprofits) and to small governmental jurisdictions 
(cities, counties, towns, townships, villages, school districts, and 
special districts with populations of less than 50,000). 5 U.S.C. 
601(4)-(6). We do not collect annual revenue data on EBS licensees.
    \187\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' (partial definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
    \188\ 13 CFR 121.201, NAICS code 517110.
    \189\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the United States: 
2002, NAICS code 517510 (issued November 2005).
    \190\ Id. An additional 61 firms had annual receipts of $25 
million or more.
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    59. Television Broadcasting. This Economic Census category 
``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.'' \191\ The SBA has created 
the following small business size standard for Television 
Broadcasting firms: those having $14 million or less in annual 
receipts.\192\ The Commission has estimated the number of licensed 
commercial television stations to be 1,379.\193\ In addition, 
according to Commission staff review of the BIA Publications, Inc., 
Master Access Television Analyzer Database (BIA) on March 30, 2007, 
about 986 of an estimated 1,374 commercial television stations (or 
approximately 72 percent) had revenues of $13 million or less.\194\ 
We therefore estimate that the majority of commercial television 
broadcasters are small entities.
---------------------------------------------------------------------------

    \191\ U.S. Census Bureau, 2007 NAICS Definitions, ``515120 
Television Broadcasting'' (partial definition); http://www.census.gov/naics/2007/def/ND515120.HTM#N515120.
    \192\ 13 CFR 121.201, NAICS code 515120 (updated for inflation 
in 2008).
    \193\ See FCC News Release, ``Broadcast Station Totals as of 
December 31, 2007,'' dated March 18, 2008; http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
    \194\ We recognize that BIA's estimate differs slightly from the 
FCC total given supra.
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    60. We note, however, that in assessing whether a business 
concern qualifies as small under the above definition, business 
(control) affiliations \195\ 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. 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 does not exclude any 
television station from the definition of a small business on this 
basis and is therefore possibly over-inclusive to that extent.
---------------------------------------------------------------------------

    \195\ ``[Business 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).
---------------------------------------------------------------------------

    61. In addition, the Commission has estimated the number of 
licensed noncommercial educational (NCE) television stations to be 
380.\196\ These stations are nonprofit, and therefore considered to 
be small entities.\197\
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    \196\ See FCC News Release, ``Broadcast Station Totals as of 
December 31, 2007,'' dated March 18, 2008; http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
    \197\ See generally 5 U.S.C. 601(4), (6).
---------------------------------------------------------------------------

    62. In addition, there are also 2,295 low power television 
stations (LPTV).\198\ 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.
---------------------------------------------------------------------------

    \198\ See FCC News Release, ``Broadcast Station Totals as of 
December 31, 2007,'' dated March 18, 2008; http://www.fcc.gov/Daily_Releases/Daily_Business/2008/db0318/DOC-280836A1.pdf.
---------------------------------------------------------------------------

    63. Radio Broadcasting. This Economic Census category 
``comprises establishments primarily engaged in broadcasting aural 
programs by radio to the public. Programming may originate in their 
own studio, from an affiliated network, or from external sources.'' 
\199\ The SBA has established a small business size standard for 
this category, which is: Such firms having $7 million or less in 
annual receipts.\200\ According to Commission staff review of BIA 
Publications, Inc.'s Master Access Radio Analyzer Database on March 
31, 2005, about 10,840 (95%) of 11,410 commercial radio stations had 
revenues of $6 million or less. Therefore, the majority of such 
entities are small entities.
---------------------------------------------------------------------------

    \199\ U.S. Census Bureau, 2007 NAICS Definitions, ``515112 Radio 
Stations''; http://www.census.gov/naics/2007/def/ND515112.HTM#N515112.
    \200\ 13 CFR 121.201, NAICS code 515112 (updated for inflation 
in 2008).
---------------------------------------------------------------------------

    64. We note, however, that in assessing whether a business 
concern qualifies as small under the above size standard, business 
affiliations must be included.\201\ In addition, to be determined to 
be a ``small business,'' the entity may not be dominant in its field 
of operation.\202\ We note that it is difficult at times to assess 
these criteria in the context of media entities, and our estimate of 
small businesses may therefore be over-inclusive.
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    \201\ ``Concerns and entities are affiliates of each other when 
one controls or has the power to control the other, or a third party 
or parties controls or has the power to control both. It does not 
matter whether control is exercised, so long as the power to control 
exists.'' 13 CFR 121.103(a)(1) (an SBA regulation).
    \202\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------

    65. 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.\203\
---------------------------------------------------------------------------

    \203\ 13 CFR 121.201, NAICS codes 515112 and 515120.
---------------------------------------------------------------------------

    66. The Commission estimates that there are approximately 5,618 
FM translators and boosters.\204\ 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 
($7.0 million for a radio station or $14.0 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.\205\
---------------------------------------------------------------------------

    \204\ See supra note 242.
    \205\ See 15 U.S.C. 632.
---------------------------------------------------------------------------

    67. Cable Television Distribution Services. Since 2007, these 
services have been defined within the broad economic census category 
of Wired Telecommunications Carriers; that category is defined as 
follows: ``This industry comprises establishments primarily engaged 
in operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies.'' \206\ The SBA has 
developed a small business size standard for this category, which 
is: All such firms having 1,500 or fewer employees. To gauge small 
business prevalence for these cable services we must, however, use 
current census data that are based on the previous category of Cable 
and Other Program Distribution and its associated size standard; 
that size standard was: All such firms having $13.5 million or less 
in

[[Page 40113]]

annual receipts.\207\ According to Census Bureau data for 2002, 
there were a total of 1,191 firms in this previous category that 
operated for the entire year.\208\ 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.\209\ Thus, the 
majority of these firms can be considered small.
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    \206\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' (partial definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
    \207\ 13 CFR 121.201, NAICS code 517110.
    \208\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the United States: 
2002, NAICS code 517510 (issued November 2005).
    \209\ Id. An additional 61 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    68. 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.\210\ Industry data indicate that, of 1,076 cable 
operators nationwide, all but eleven are small under this size 
standard.\211\ In addition, under the Commission's rules, a ``small 
system'' is a cable system serving 15,000 or fewer subscribers.\212\ 
Industry data indicate that, of 7,208 systems nationwide, 6,139 
systems have under 10,000 subscribers, and an additional 379 systems 
have 10,000-19,999 subscribers.\213\ Thus, under this second size 
standard, most cable systems are small.
---------------------------------------------------------------------------

    \210\ 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).
    \211\ These data are derived from: R.R. Bowker, Broadcasting & 
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8 
& C-2 (data current as of June 30, 2005); Warren Communications 
News, Television & Cable Factbook 2006, ``Ownership of Cable Systems 
in the United States,'' pages D-1805 to D-1857.
    \212\ 47 CFR 76.901(c).
    \213\ 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.
---------------------------------------------------------------------------

    69. 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.'' \214\ 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.\215\ Industry data indicate that, of 1,076 cable 
operators nationwide, all but ten are small under this size 
standard.\216\ 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,\217\ and therefore we are unable to estimate more 
accurately the number of cable system operators that would qualify 
as small under this size standard.
---------------------------------------------------------------------------

    \214\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
    \215\ 47 CFR 76.901(f); see Public Notice, FCC Announces New 
Subscriber Count for the Definition of Small Cable Operator, DA 01-
158 (Cable Services Bureau, Jan. 24, 2001).
    \216\ These data are derived from: R.R. Bowker, Broadcasting & 
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8 
& C-2 (data current as of June 30, 2005); Warren Communications 
News, Television & Cable Factbook 2006, ``Ownership of Cable Systems 
in the United States,'' pages D-1805 to D-1857.
    \217\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's 
finding that the operator does not qualify as a small cable operator 
pursuant to section 76.901(f) of the Commission's rules. See 47 CFR 
76.909(b).
---------------------------------------------------------------------------

    70. Open Video Systems. The open video system (OVS) framework 
was established in 1996, and is one of four statutorily recognized 
options for the provision of video programming services by local 
exchange carriers.\218\ The OVS framework provides opportunities for 
the distribution of video programming other than through cable 
systems. Because OVS operators provide subscription services,\219\ 
OVS falls within the SBA small business size standard covering cable 
services, which is ``Wired Telecommunications Carriers.'' \220\ The 
SBA has developed a small business size standard for this category, 
which is: All such firms having 1,500 or fewer employees. To gauge 
small business prevalence for such services we must, however, use 
current census data that are based on the previous category of Cable 
and Other Program Distribution and its associated size standard; 
that size standard was: All such firms having $13.5 million or less 
in annual receipts.\221\ According to Census Bureau data for 2002, 
there were a total of 1,191 firms in this previous category that 
operated for the entire year.\222\ 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.\223\ Thus, the 
majority of cable firms can be considered small. In addition, we 
note that the Commission has certified some OVS operators, with some 
now providing service.\224\ Broadband service providers (BSPs) are 
currently the only significant holders of OVS certifications or 
local OVS franchises.\225\ The Commission does not have financial or 
employment information regarding the entities authorized to provide 
OVS, some of which may not yet be operational. Thus, again, at least 
some of the OVS operators may qualify as small entities.
---------------------------------------------------------------------------

    \218\ 47 U.S.C. 571(a)(3)-(4). See Annual Assessment of the 
Status of Competition in the Market for the Delivery of Video 
Programming, Thirteenth Annual Report, 24 FCC Rcd 542, 606 paragraph 
135 (2009) (``Thirteenth Annual Cable Competition Report'').
    \219\ See 47 U.S.C. 573.
    \220\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers''; http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
    \221\ 13 CFR 121.201, NAICS code 517110.
    \222\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the United States: 
2002, NAICS code 517510 (issued November 2005).
    \223\ Id. An additional 61 firms had annual receipts of $25 
million or more.
    \224\ A list of OVS certifications may be found at http://www.fcc.gov/mb/ovs/csovscer.html.
    \225\ See Thirteenth Annual Cable Competition Report, 24 FCC Rcd 
at 606-07 paragraph 135. BSPs are newer firms that are building 
state-of-the-art, facilities-based networks to provide video, voice, 
and data services over a single network.
---------------------------------------------------------------------------

    71. Cable Television Relay Service. This service includes 
transmitters generally used to relay cable programming within cable 
television system distribution systems. This cable service is 
defined within the broad economic census category of Wired 
Telecommunications Carriers; that category is defined as follows: 
``This industry comprises establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies.'' \226\ The SBA has 
developed a small business size standard for this category, which 
is: All such firms having 1,500 or fewer employees. To gauge small 
business prevalence for cable services we must, however, use current 
census data that are based on the previous category of Cable and 
Other Program Distribution and its associated size standard; that 
size standard was: All such firms having $13.5 million or less in 
annual receipts.\227\ According to Census Bureau data for 2002, 
there were a total of 1,191 firms in this previous category that 
operated for the entire year.\228\ 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.\229\ Thus, the 
majority of these firms can be considered small.
---------------------------------------------------------------------------

    \226\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' (partial definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
    \227\ 13 CFR 121.201, NAICS code 517110.
    \228\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the United States: 
2002, NAICS code 517510 (issued November 2005).
    \229\ Id. An additional 61 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    72. Multichannel Video Distribution and Data Service. MVDDS is a 
terrestrial fixed microwave service operating in the 12.2-12.7 GHz 
band. The Commission adopted criteria for defining three groups of 
small businesses for purposes of determining their eligibility for 
special provisions such as bidding credits. It defined a very small 
business as an entity with average annual gross revenues not 
exceeding $3 million for the preceding three years; a small business 
as an entity with average annual gross revenues not exceeding $15 
million for the preceding three years; and an entrepreneur as an 
entity with average annual gross revenues not exceeding $40 million 
for the preceding three years.\230\

[[Page 40114]]

These definitions were approved by the SBA.\231\ 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.\232\ 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.\233\
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    \230\ 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 Licensees 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, paragraph 252 (2002).
    \231\ See Letter from Hector V. Barreto, Administrator, U.S. 
Small Business Administration, to Margaret W. Wiener, Chief, 
Auctions and Industry Analysis Division, WTB, FCC (Feb.13, 2002).
    \232\ See ``Multichannel Video Distribution and Data Service 
Auction Closes,'' Public Notice, 19 FCC Rcd 1834 (2004).
    \233\ 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).
---------------------------------------------------------------------------

    73. Amateur Radio Service. These licensees are held by 
individuals in a noncommercial capacity; these licensees are not 
small entities.
    74. 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 Wireless Telecommunications 
Carriers (except Satellite), which is 1,500 or fewer employees.\234\ 
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.\235\ 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.
---------------------------------------------------------------------------

    \234\ 13 CFR 121.201, NAICS code 517210.
    \235\ Amendment of the Commission's Rules Concerning Maritime 
Communications, Third Report and Order and Memorandum Opinion and 
Order, 13 FCC Rcd 19853 (1998).
---------------------------------------------------------------------------

    75. 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.\236\ These services include Citizen Band 
Radio Service (CB), General Mobile Radio Service (GMRS), Radio 
Control Radio Service (R/C), Family Radio Service (FRS), Wireless 
Medical Telemetry Service (WMTS), Medical Implant Communications 
Service (MICS), Low Power Radio Service (LPRS), and Multi-Use Radio 
Service (MURS).\237\ There are a variety of methods used to license 
the spectrum in these rule parts, from licensing by rule, to 
conditioning operation on successful completion of a required test, 
to site-based licensing, to geographic area licensing. Under the 
RFA, the Commission is required to make a determination of which 
small entities are directly affected by the rules being proposed. 
Since all such entities are wireless, we apply the definition of 
Wireless Telecommunications Carriers (except Satellite), pursuant to 
which a small entity is defined as employing 1,500 or fewer 
persons.\238\ 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 proposed 
rules.
---------------------------------------------------------------------------

    \236\ 47 CFR Part 90.
    \237\ 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.
    \238\ 13 CFR 121.201, NAICS Code 517210.
---------------------------------------------------------------------------

    76. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, 
highway maintenance, and emergency medical services.\239\ There are 
a total of approximately 127,540 licensees in these services. 
Governmental entities \240\ 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.\241\
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    \239\ 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 is presently comprised of 
approximately 41,000 licensees that are state, county, or municipal 
entities that use the radio for official purposes not covered by 
other public safety services. There are approximately 7,000 
licensees within the forestry service which is comprised of 
licensees from state departments of conservation and private forest 
organizations who set up communications networks among fire lookout 
towers and ground crews. The approximately 9,000 state and local 
governments are licensed to provide highway maintenance service and 
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.
    \240\ 47 CFR 1.1162.
    \241\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

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

    77. 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.\242\ Interstate telephone

[[Page 40115]]

service providers must compute their annual regulatory fee based on 
their interstate and international end-user revenue using 
information they already supply to the Commission in compliance with 
the Form 499-A, Telecommunications Reporting Worksheet, and they 
must complete and submit the FCC Form 159. Compliance with the fee 
schedule will require some licensees to tabulate the number of units 
(e.g., cellular telephones, pagers, cable TV subscribers) they have 
in service, and complete and submit an FCC Form 159. Licensees 
ordinarily will keep a list of the number of units they have in 
service as part of their normal business practices. No additional 
outside professional skills are required to complete the FCC Form 
159, and it can be completed by the employees responsible for an 
entity's business records.
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    \242\ See 47 CFR 1.1162 for the general exemptions from 
regulatory fees. E.g., Amateur radio licensees (except applicants 
for vanity call signs) and operators in other non-licensed services 
(e.g., Personal Radio, part 15, ship and aircraft). Governments and 
non-profit (exempt under section 501(c) of the Internal Revenue 
Code) entities are exempt from payment of regulatory fees and need 
not submit payment. Non-commercial educational broadcast licensees 
are exempt from regulatory fees as are licensees of auxiliary 
broadcast services such as low power auxiliary stations, television 
auxiliary service stations, remote pickup stations and aural 
broadcast auxiliary stations where such licenses are used in 
conjunction with commonly owned non-commercial educational stations. 
Emergency Alert System licenses for auxiliary service facilities are 
also exempt as are instructional television fixed service licensees. 
Regulatory fees are automatically waived for the licensee of any 
translator station that: (1) Is not licensed to, in whole or in 
part, and does not have common ownership with, the licensee of a 
commercial broadcast station; (2) does not derive income from 
advertising; and (3) is dependent on subscriptions or contributions 
from members of the community served for support. Receive only earth 
station permittees are exempt from payment of regulatory fees. A 
regulatee will be relieved of its fee payment requirement if its 
total fee due, including all categories of fees for which payment is 
due by the entity, amounts to less than $10.
---------------------------------------------------------------------------

    78. As discussed previously in the accompanying Order at 
paragraphs 19 through 23, the Commission has concluded that 
beginning in the FY 2009 regulatory fee cycle, licensees filing 
their annual regulatory fee payments must begin the process by 
entering the Commission's Fee Filer system with a valid FRN and 
password. In some instances, it will be necessary to use a specific 
FRN and password that is linked to a particular regulatory fee bill. 
Going forward, the submission of hardcopy Form 159 documents will 
not be permitted for making a regulatory fee payment. By requiring 
licensees to use Fee Filer to begin the regulatory fee payment 
process, errors resulting from illegible handwriting on hardcopy 
Form 159's will be reduced, and we will create an electronic record 
of licensee payment attributes that are more easily traced than 
those payments that are simply mailed in with a hardcopy Form 159.
    79. 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.\243\ If payment is not received, new 
or pending applications may be dismissed, and existing 
authorizations may be subject to rescission.\244\ Further, in 
accordance with the DCIA, 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.\245\ 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.\246\
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    \243\ 47 CFR 1.1164.
    \244\ 47 CFR 1.1164(c).
    \245\ Public Law 104-134, 110 Stat. 1321 (1996).
    \246\ 31 U.S.C. 7701(c)(2)(B).
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    80. 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.\247\ 
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.
---------------------------------------------------------------------------

    \247\ 47 CFR 1.1166.
---------------------------------------------------------------------------

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

    81. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its 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.\248\ In the NPRM, we sought comment on alternatives that 
might simplify our fee procedures or otherwise benefit filers, 
including small entities, while remaining consistent with our 
statutory responsibilities in this proceeding. We received no 
comments specifically in response to the IRFA.
---------------------------------------------------------------------------

    \248\ 5 U.S.C. 603.
---------------------------------------------------------------------------

    82. 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. We note that small entities should be assisted by our 
implementation of the Fee Filer program, and that we have continued 
our practice of exempting fees whose total sum owed is less than 
$10.00.

VI. Report to Congress

    83. The Commission will send a copy of this Report and Order, 
including this FRFA, in a report to be sent to Congress and the 
Government Accountability Office pursuant to the Congressional 
Review Act.\249\. In addition, the Commission will send a copy of 
this Report and Order, including the FRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration. A copy of this Report 
and Order and FRFA (or summaries thereof) will also be published in 
the Federal Register.\250\
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    \249\ See 5 U.S.C. 801(a)(1)(A). The Congressional Review Act is 
contained in Title II, section 251, of the CWAAA; see Public Law 
104-121, Title II, section 251, 110 Stat. 868.
    \250\ See 5 U.S.C. 604(b).
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Appendix G

Proposed Letter to Submarine Cable Operators

[insert address of submarine cable operator]

Re:/Regulatory Fees for Fiscal Year [insert year]

    Our annual regulatory fee assessment for submarine cable 
operators is based on the total capacity for the submarine cable 
system. For this reason, we require submarine cable operators to 
advise us of the appropriate category for determining regulatory 
fees. Please indicate below the correct category and return this 
letter to us by February 15, 20------.


 
------------------------------------------------------------------------
 Submarine cable systems (capacity as of    Please check the appropriate
               December 31)                           category
------------------------------------------------------------------------
<2.5 Gbps.                                 .............................
2.5 Gbps or greater, but less than 5       .............................
 Gbps.
5 Gbps or greater, but less than 10 Gbps.  .............................
10 Gbps or greater, but less than 20       .............................
 Gbps.
20 Gbps or greater.                        .............................
------------------------------------------------------------------------


    Thank you for your assistance in this matter.

Certification Statement

    I ---------- certify under penalty of perjury that the foregoing 
and supporting information is true and correct to the best of my 
knowledge, information and belief.

Signature ---------- Date ----------

Appendix H


                   FY 2008 Schedule of Regulatory Fees
------------------------------------------------------------------------
                                                             Annual
                     Fee category                        regulatory fee
                                                           (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)..                40
Microwave (per license) (47 CFR part 101).............                40
218-219 MHz (Formerly Interactive Video Data Service)                 60
 (per license) (47 CFR part 95).......................
Marine (Ship) (per station) (47 CFR part 80)..........                10

[[Page 40116]]

 
Marine (Coast) (per license) (47 CFR part 80).........                35
General Mobile Radio Service (per license) (47 CFR                     5
 part 95).............................................
Rural Radio (47 CFR part 22) (previously listed under                 20
 the Land Mobile category)............................
PLMRS (Shared Use) (per license) (47 CFR part 90).....                20
Aviation (Aircraft) (per station) (47 CFR part 87)....                 5
Aviation (Ground) (per license) (47 CFR part 87)......                10
Amateur Vanity Call Signs (per call sign) (47 CFR part              1.23
 97)..................................................
CMRS Mobile/Cellular Services (per unit) (47 CFR parts               .17
 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                     295
 license sign) (47 CFR part 21).......................
Local Multipoint Distribution Service (per call sign)                295
 (47 CFR, part 101)...................................
AM Radio Construction Permits.........................               415
FM Radio Construction Permits.........................               600
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10......................................            71,050
    Markets 11-25.....................................            53,525
    Markets 26-50.....................................            33,525
    Markets 51-100....................................            21,025
    Remaining Markets.................................             5,600
    Construction Permits..............................             5,600
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10......................................            21,225
    Markets 11-25.....................................            19,475
    Markets 26-50.....................................            11,900
    Markets 51-100....................................             6,800
    Remaining Markets.................................             1,800
    Construction Permits..............................             1,800
Satellite Television Stations (All Markets)...........             1,175
Construction Permits--Satellite Television Stations...               595
Low Power TV, TV/FM Translators & Boosters (47 CFR                   365
 part 74).............................................
Broadcast Auxiliary (47 CFR part 74)..................                10
CARS (47 CFR part 78).................................               205
Cable Television Systems (per subscriber) (47 CFR part               .80
 76)..................................................
Interstate Telecommunication Service Providers (per               .00314
 revenue dollar)......................................
Earth Stations (47 CFR part 25).......................               195
Space Stations (per operational station in                       119,300
 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-                   125,750
 geostationary orbit) (47 CFR part 25)................
International Bearer Circuits (per active 64KB                       .93
 circuit).............................................
International Public Fixed (per call sign) (47 CFR                 2,025
 part 23).............................................
International (HF) Broadcast (47 CFR part 73).........               860
------------------------------------------------------------------------


                                 FY 2008 Schedule of Regulatory Fees (Continued)
----------------------------------------------------------------------------------------------------------------
                                      FY 2008 Radio Station Regulatory Fees
-----------------------------------------------------------------------------------------------------------------
                                                                                                FM         FM
                                                 AM Class   AM Class   AM Class   AM Class   Classes    Classes
               Population served                    A          B          C          D       A, B1 &   B, C, C0,
                                                                                                C3      C1 & C2
----------------------------------------------------------------------------------------------------------------
< =25,000.....................................       $650       $500       $450       $525       $600       $775
25,001-75,000.................................      1,325      1,025        650        775      1,225      1,375
75,001-150,000................................      1,975      1,275        875      1,300      1,675      2,550
150,001-500,000...............................      2,975      2,175      1,325      1,550      2,600      3,325
500,001-1,200,000.............................      4,300      3,325      2,200      2,575      4,125      4,900
1,200,001-3,000,000...........................      6,600      5,100      3,300      4,125      6,700      7,850
> 3,000,000...................................      7,925      6,125      4,175      5,150      8,550     10,200
----------------------------------------------------------------------------------------------------------------

[FR Doc. E9-19104 Filed 8-10-09; 8:45 am]
BILLING CODE 6712-01-P