[Federal Register Volume 77, Number 150 (Friday, August 3, 2012)]
[Rules and Regulations]
[Pages 46307-46338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-18661]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 12-116; FCC 12-76]


Assessment and Collection of Regulatory Fees for Fiscal Year 2012

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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

SUMMARY: The Commission revises its Schedule of Regulatory Fees to 
recover an amount of $339,844,000 that Congress has required the 
Commission to collect for fiscal year 2012. Section 9 of the 
Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees under sections 9(b)(2) and 
9(b)(3), respectively, for annual ``Mandatory Adjustments'' and 
``Permitted Amendments'' to the Schedule of Regulatory Fees.

DATES: Effective September 4, 2012.

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

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order (R&O), FCC 12-76, MD Docket No. 12-116, adopted on July 13, 
2012 and released on July 19, 2012.

I. Procedural Matters

A. Final Paperwork Reduction Act

    1. This Report and Order does not contain any new or modified 
information collection burden for small business concerns with fewer 
than 25 employees, pursuant to the Small Business Paperwork Relief Act 
of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).

B. Congressional Review Act Analysis

    2. The Commission will send a copy of this Report and Order to 
Congress and the Government Accountability Office pursuant to the 
Congressional Review Act.\1\
---------------------------------------------------------------------------

    \1\ 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.
---------------------------------------------------------------------------

C. Final Regulatory Flexibility Analysis

    3. As required by the Regulatory Flexibility Act of 1980 
(``RFA''),\2\ the Commission has prepared a Final Regulatory 
Flexibility Analysis (``FRFA'') relating to this Report and Order. The 
FRFA is set forth in the section entitled Final Regulatory Flexibility 
Analysis.
---------------------------------------------------------------------------

    \2\ 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'').
---------------------------------------------------------------------------

II. Introduction and Summary

    4. In this Report and Order, we conclude the process of assessing 
and collecting regulatory fees for Fiscal Year (``FY'') 2012 to collect 
$339,844,000 in regulatory fees for FY 2012. Section 9(a)(1) of the 
Communications Act of 1934, as amended (the ``Act'') directs the 
Commission to collect regulatory fees ``to recover the costs of * * * 
enforcement activities, policy and rulemaking activities, user 
information services, and international activities.'' \3\ Section 
9(a)(2) stipulates that regulatory fees for the enumerated activities 
``shall be collected only if, and only in the total amounts, required 
in Appropriation Acts,'' and must ``be established in amounts that will 
result in collection, during each fiscal year, of any amount that can 
reasonably be expected to equal the amount appropriated'' for the 
performance of the activities enumerated in section 9(a)(1) during that 
fiscal year. Since FY 2009, Congress has directed the Commission to 
assess and collect regulatory fees in an amount equal to the entire 
amount appropriated.\4\ Congress appropriated $339,844,000 for the 
Commission in FY 2012,\5\ and the regulatory fees established in this 
FY 2012 Report and Order are calculated so as to collect this entire 
amount.\6\ In this annual regulatory fee proceeding, we retain many of 
the current 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 September 2012 filing window in order to collect the 
required amount by the end of our fiscal year.\7\
---------------------------------------------------------------------------

    \3\ 47 U.S.C. 159(a).
    \4\ Omnibus Appropriations Act of 2009, Public Law 111-8, 123 
Stat. 524, 657 (2009).
    \5\ Consolidated Appropriations Act of 2012, Public Law 112-74, 
Div. C, Title V (December 23, 2011).
    \6\ In FY 2011, the Commission's collection target goal was 
$335,794,000, and it collected $342.04 million through September 30, 
2011. Any over collection amount is unavailable for obligation 
pursuant to Public Law 112-74 (HR 2055), Consolidated Appropriations 
Act of 2012, page 124.
    \7\ The Commission also expects to release in the near future a 
Notice of Proposed Rulemaking that will propose to update our 
current cost allocation percentages and revise our cost allocation 
methodology. We expect to implement any changes that result from 
this rulemaking in FY 2013; they do not affect the fees set in this 
FY 2012 Report and Order.
---------------------------------------------------------------------------

    5. In this FY 2012 Report and Order, we address the following 
issues: (1) Incorporating 2010 Census data into our broadcast 
population data, (2) assessing a regulatory fee for each broadcasting 
facility operating either in an analog or digital mode (but not both) 
for Low Power, Class A, and TV Translators/Boosters, (3) maintaining 
the FY 2012 Interstate Telecommunications Service Provider (ITSP) fee 
rate at the same level as in FY 2011, (4) using an online filing system 
for the filing of requests for a refund, waiver, fee reduction, or 
deferment of payment of an application or regulatory fee, (5) 
maintaining the Commercial Mobile Radio Service (``CMRS'') Messaging 
Service at the rate of $.08 per subscriber, and (6) the

[[Page 46308]]

Commission will continue to promote greater use of technology (and less 
use of paper) in improving its regulatory fee notification and 
collection processes. The resulting FY 2012 Schedule of Regulatory Fees 
appears in Table B.

III. Report and Order

    6. In this FY 2012 Report and Order, we retain the same regulatory 
fee methodology used in FY 2011 and in prior fiscal years, with some 
adjustments to maintain the FY 2012 ITSP fee rate at the same level as 
in FY 2011. These adjustments are reflected in the ITSP fee rate, as 
well as in the fee rates of all remaining fee categories listed in 
Table B.
    7. Since FY 1999, the Commission has allocated the amount 
appropriated by Congress across the various fee categories, and then 
divided these allocated amounts by the number of estimated payment 
units in each fee category to determine the unit fee.\8\ As in prior 
years, for cases involving small multiyear fees (e.g., licenses that 
are renewed over a multiyear term), we divided the allocated amounts by 
their respective estimated payment units, as well as by the term of the 
license (5-year or 10-year) to determine the unit fee, which was then 
rounded to be consistent with the requirements of section 9(b)(2)(B) of 
the Act. This process is illustrated in Table A and yields the FY 2012 
regulatory fees shown in Table B.
---------------------------------------------------------------------------

    \8\ 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.

                                         TABLE A--Calculation of FY 2012 Revenue Requirements and Pro-Rata Fees
[Regulatory fees for the first ten categories below are collected by the Commission in advance to cover the term of the license and are submitted at the
                                                             time the application is filed.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              FY 2011      Pro-rated FY    Computed new   Rounded new FY
               Fee category                  FY 2012 Payment     Years        Revenue      2012 revenue       FY 2012          2012         Expected FY
                                                  units                      estimate       requirement   regulatory fee  regulatory fee   2012 revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use).....................              1,400         10         480,000         501,024              36              35         490,000
PLMRS (Shared use)........................             15,000         10       2,120,000       2,397,759              16              15       2,250,000
Microwave.................................             13,200         10       2,550,000       2,361,972              18              20       2,640,000
218-219 MHz (Formerly IVDS)...............                  5         10           1,950           3,579              72              70           3,500
Marine (Ship).............................              6,550         10         670,000         787,324              12              10         655,000
GMRS......................................              7,700          5         232,500         286,300               7               5         192,500
Aviation (Aircraft).......................              2,900         10         460,000         357,874              12              10         290,000
Marine (Coast)............................                285         10         132,500         143,150              50              50         142,500
Aviation (Ground).........................                900         10         165,000         143,150              16              15         135,000
Amateur Vanity Call Signs.................             14,300         10         207,320         214,725            1.50            1.50         214,500
AM Class A4a..............................                 61          1         257,400         250,512           4,107           4,100         250,100
AM Class B4b..............................              1,471          1       3,057,875       3,113,508           2,117           2,125       3,125,875
AM Class C4c..............................                869          1       1,078,650       1,109,411           1,277           1,275       1,107,975
AM Class D4d..............................              1,541          1       3,642,325       3,686,107           2,392           2,400       3,698,400
FM Classes A, B1 & C34e...................              3,055          1       7,629,300       7,759,664           2,548           2,550       7,764,750
FM Classes B, C, C0, C1 & C24f............              3,020          1       9,410,775       9,513,249           3,150           3,150       9,513,000
AM Construction Permits...................                 65          1          44,100           35787             551             550          35,750
FM Construction Permits \1\...............                120          1         101,925          84,000             700             700          84,000
Satellite TV..............................                125          1         166,250         178,937           1,431           1,425         178,125
Satellite TV Construction Permit..........                  4          1           2,010           3,579             895             895           3,580
VHF Markets 1-10..........................                 22          1       1,692,500       1,761,769          80,080          80,075       1,761,650
VHF Markets 11-25.........................                 25          1       1,772,550       1,836,977          73,479          73,475       1,836,875
VHF Markets 26-50.........................                 38          1       1,457,100       1,512,153          39,793          39,800       1,512,400
VHF Markets 51-100........................                 60          1       1,183,000       1,255,187          20,920          20,925       1,255,500
VHF Remaining Markets.....................                137          1         774,700         798,915           5,831           5,825         798,025
VHF Construction Permits \1\..............                  2          1          12,200          11,650           5,825           5,825          11,650
UHF Markets 1-10..........................                109          1       3,915,450       3,854,222          35,360          35,350       3,853,150
UHF Markets 11-25.........................                106          1       3,525,650       3,456,927          32,613          32,625       3,458,250
UHF Markets 26-50.........................                135          1       3,016,800       2,958,639          21,916          21,925       2,959,875
UHF Markets 51-100........................                225          1       2,933,350       2,868,448          12,749          12,750       2,868,750
UHF Remaining Markets.....................                247          1         864,600         847,308           3,430           3,425         845,975
UHF Construction Permits\1\...............                  7          1          32,750          23,975           3,425           3,425          23,975
Broadcast Auxiliaries.....................             24,800          1         268,500         286,300              12              10         248,000
LPTV/Translators/Boosters/Class A TV......              3,732          1       1,424,765       1,431,498             384             385       1,436,820
CARS Stations.............................                375          1         173,900         178,937             477             475         178,125
Cable TV Systems..........................         62,200,000          1      58,962,000      59,228,227          0.9522            0.95      59,090,000
Interstate Telecommunication Service          $39,700,000,000          1     148,125,000     148,875,000        0.003750         0.00375     148,875,000
 Providers................................

[[Page 46309]]

 
CMRS Mobile Services (Cellular/Public             313,000,000          1      50,660,000      52,156,612          0.1666            0.17      53,210,000
 Mobile)..................................
CMRS Messaging Services...................          3,400,000          1         336,000         272,000          0.0800           0.080         272,000
BRS\2\....................................                950          1         523,900         451,250             475             475         451,250
LMDS......................................                475          1         161,200         225,625             475             475         225,625
Per 64 kbps Int'l Bearer Circuits                   4,452,315          1       1,136,518       1,153,787            .259             .26       1,157,602
 Terrestrial (Common) & Satellite (Common
 & Non-Common)
Submarine Cable Providers (see chart in                38.313          1       8,080,734       8,150,949         212,749         212,750       8,150,984
 Appendix C)\3\...........................
Earth Stations............................              3,250          1         875,875         894,686             275             275         893,750
Space Stations (Geostationary)............                 87          1      11,429,625      11,559,346         132,866         132,875      11,560,125
Space Stations (Non-Geostationary.........                  6          1         850,500         858,899         143,150         143,150         858,900
                                           -------------------------------------------------------------------------------------------------------------
     ****** Total Estimated Revenue to be   .................  .........     336,599,047     339,840,896  ..............  ..............     340,568,811
     Collected............................
                                           -------------------------------------------------------------------------------------------------------------
    ****** Total Revenue Requirement......  .................  .........     335,794,000     339,844,000  ..............  ..............     339,844,000
                                           -------------------------------------------------------------------------------------------------------------
            Difference....................  .................  .........         805,048         (3,104)  ..............  ..............        724,811
--------------------------------------------------------------------------------------------------------------------------------------------------------
\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, para. 6 (2004).
\3\ The chart at the end of Attachment 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.
\4\ The fee amounts listed in the column entitled ``Rounded New FY 2012 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
  service. The actual FY 2012 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table B.


              Table B--FY 2012 Schedule of Regulatory Fees
 [Regulatory fees for the first eleven categories below are collected by
   the Commission in advance to cover the term of the license and are
            submitted at the time the application is filed.]
------------------------------------------------------------------------
                                                             Annual
                     Fee category                        regulatory fee
                                                           (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).                 35
Microwave (per license) (47 CFR part 101)............                 20
218-219 MHz (Formerly Interactive Video Data Service)                 70
 (per license) (47 CFR part 95)......................
Marine (Ship) (per station) (47 CFR part 80).........                 10
Marine (Coast) (per license) (47 CFR part 80)........                 50
General Mobile Radio Service (per license) (47 CFR                     5
 part 95)............................................
Rural Radio (47 CFR part 22) (previously listed under                 15
 the Land Mobile category)...........................
PLMRS (Shared Use) (per license) (47 CFR part 90)....                 15
Aviation (Aircraft) (per station) (47 CFR part 87)...                 10
Aviation (Ground) (per license) (47 CFR part 87).....                 15
Amateur Vanity Call Signs (per call sign) (47 CFR                   1.50
 part 97)............................................
CMRS Mobile/Cellular Services (per unit) (47 CFR                     .17
 parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20,                 .08
 22, 24 and 90)......................................
Broadband Radio Service (formerly MMDS/MDS) (per                     475
 license) (47 CFR part 27)...........................
Local Multipoint Distribution Service (per call sign)                475
 (47 CFR, part 101)..................................
AM Radio Construction Permits........................                550
FM Radio Construction Permits........................                700
TV (47 CFR part 73) VHF Commercial:

[[Page 46310]]

 
    Markets 1-10.....................................             80,075
    Markets 11-25....................................             73,475
    Markets 26-50....................................             39,800
    Markets 51-100...................................             20,925
    Remaining Markets................................              5,825
    Construction Permits.............................              5,825
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10.....................................             35,350
    Markets 11-25....................................             32,625
    Markets 26-50....................................             21,925
    Markets 51-100...................................             12,750
    Remaining Markets................................              3,425
    Construction Permits.............................              3,425
Satellite Television Stations (All Markets)..........              1,425
Construction Permits--Satellite Television Stations..                895
Low Power TV, Class A TV, TV/FM Translators &                        385
 Boosters (47 CFR part 74)...........................
Broadcast Auxiliaries (47 CFR part 74)...............                 10
CARS (47 CFR part 78)................................                475
Cable Television Systems (per subscriber) (47 CFR                    .95
 part 76)............................................
Interstate Telecommunication Service Providers (per               .00375
 revenue dollar).....................................
Earth Stations (47 CFR part 25)......................                275
Space Stations (per operational station in                       132,875
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100)................................................
Space Stations (per operational system in non-                   143,150
 geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits--Terrestrial/Satellites                .26
 (per 64KB circuit)..................................
International Bearer Circuits--Submarine Cable.......    See Table Below
------------------------------------------------------------------------


                                                     FY 2012 Schedule of Regulatory Fees (Continued)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          FY 2012 Radio station regulatory fees
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM Classes A,   FM Classes B,
                    Population served                       AM Class A      AM Class B      AM Class C      AM Class D        B1 & C3     C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
< = 25,000..............................................            $725            $600            $550            $625            $700            $875
25,001-75,000...........................................           1,475           1,225             850             950           1,425           1,550
75,001-150,000..........................................           2,200           1,525           1,125           1,600           1,950           2,875
150,001-500,000.........................................           3,300           2,600           1,675           1,900           3,025           3,750
500,001-1,200,000.......................................           4,775           3,975           2,800           3,175           4,800           5,525
1,200,001-3,000,00......................................           7,350           6,100           4,200           5,075           7,800           8,850
>3,000,000..............................................           8,825           7,325           5,325           6,350           9,950          11,500
--------------------------------------------------------------------------------------------------------------------------------------------------------


                   FY 2012 Schedule of Regulatory Fees
            [International bearer circuits--submarine cable]
------------------------------------------------------------------------
   Submarine cable systems
 (capacity as of December 31,    Fee amount             Address
            2011)
------------------------------------------------------------------------
<2.5 Gbps....................         $13,300  FCC, International, P.O.
                                                Box 979084, St. Louis,
                                                MO 63197-9000.
2.5 Gbps or greater, but less          26,600  FCC, International, P.O.
 than 5 Gbps.                                   Box 979084, St. Louis,
                                                MO 63197-9000.
5 Gbps or greater, but less            53,200  FCC, International, P.O.
 than 10 Gbps.                                  Box 979084, St. Louis,
                                                MO 63197-9000.
10 Gbps or greater, but less          106,375  FCC, International, P.O.
 than 20 Gbps.                                  Box 979084, St. Louis,
                                                MO 63197-9000.
20 Gbps or greater...........         212,750  FCC, International, P.O.
                                                Box 979084, St. Louis,
                                                MO 63197-9000.
------------------------------------------------------------------------

    8. We then calculated the number of payment units subject to the 
fee. In some instances, Commission licensee databases were used in 
calculating payment units; in other instances, actual prior year 
payment records and/or industry and trade association projections were 
used (see Table C).\9\ Where appropriate, we adjusted and rounded our 
final estimates to take into account factors that could affect the 
number of units for which a fee is paid.\10\ Such factors include 
waivers and exemptions filed in FYs 2011 and 2012, as well as 
fluctuations in the number of licenses or station operators due to 
economic, technical, or other

[[Page 46311]]

reasons. Our estimated FY 2012 payment units, therefore, were adjusted 
to account for the variable factors relevant to each fee category. The 
fee rate may also have been rounded or adjusted slightly to reflect 
these variables.
---------------------------------------------------------------------------

    \9\ See Table C for a list of databases we consulted.
    \10\ The use of ``regulatee'' in this Order refers to any payor 
of regulatory fees.
---------------------------------------------------------------------------

TABLE C--Source of Payment Unit Estimates for FY 2012

    In order to calculate individual service fees for FY 2012, we 
adjusted FY 2011 payment units for each service to more accurately 
reflect expected FY 2012 payment liabilities. We obtained our updated 
estimates through a variety of means. For example, we used Commission 
licensee databases, actual prior year payment records and industry and 
trade association projections when available. The databases we 
consulted include our Universal Licensing System (``ULS''), 
International Bureau Filing System (``IBFS''), Consolidated Database 
System (``CDBS'') and Cable Operations and Licensing System 
(``COALS''), as well as reports generated within the Commission such as 
the Wireline Competition Bureau's Trends in Telephone Service and the 
Wireless Telecommunications Bureau's Numbering Resource Utilization 
Forecast.
    We sought verification for these estimates from multiple sources 
and, in all cases, we compared FY 2012 estimates with actual FY 2011 
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 with sufficient 
accuracy. These include an unknown number of waivers and/or exemptions 
that may occur in FY 2012 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 2012 payment units are based on FY 2011 
actual payment units, it does not necessarily mean that our FY 2012 
projection is exactly the same number as in FY 2011. We have either 
rounded the FY 2012 number or adjusted it slightly to account for these 
variables.

         Table C--Sources of Payment Unit Estimates for FY 2012
------------------------------------------------------------------------
                                             Sources of payment unit
              Fee category                          estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, 218-219    Based on Wireless
 MHz, Marine (Ship & Coast), Aviation     Telecommunications Bureau
 (Aircraft & Ground), GMRS, Amateur       (``WTB'') projections of new
 Vanity Call Signs, Domestic Public       applications and renewals
 Fixed.                                   taking into consideration
                                          existing Commission licensee
                                          databases. 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 11 payment
                                          data.
CMRS Messaging Services................  Based on WTB reports, and FY 11
                                          payment data.
AM/FM Radio Stations...................  Based on CDBS data, adjusted
                                          for exemptions, and actual FY
                                          2011 payment units.
UHF/VHF Television Stations............  Based on CDBS data, adjusted
                                          for exemptions, and actual FY
                                          2011 payment units.
AM/FM/TV Construction Permits..........  Based on CDBS data, adjusted
                                          for exemptions, and actual FY
                                          2011 payment units.
LPTV, Translators and Boosters, Class A  Based on CDBS data, adjusted
 Television.                              for exemptions, and actual FY
                                          2011 payment units.
Broadcast Auxiliaries..................  Based on actual FY 2011 payment
                                          units.
BRS (formerly MDS/MMDS)................  Based on WTB reports and actual
                                          FY 2011 payment units.
LMDS...................................  Based on WTB reports and actual
                                          FY 2011 payment units.
Cable Television Relay Service           Based on data from Media
 (``CARS'') Stations.                     Bureau's COALS database and
                                          actual FY 2011 payment units.
Cable Television System Subscribers....  Based on publicly available
                                          data sources for estimated
                                          subscriber counts and actual
                                          FY 2011 payment units.
Interstate Telecommunication Service     The Wireline Competition Bureau
 Providers.                               projected amount of calendar
                                          year 2011 revenues that will
                                          be reported on 2012 FCC Form
                                          499-A worksheets due in April,
                                          2012. Some of the projections
                                          are based on FCC Form 499-Q
                                          data for the four quarters of
                                          calendar year 2011.
Earth Stations.........................  Based on International Bureau
                                          (``IB'') licensing data and
                                          actual FY 2011 payment units.
Space Stations (GSOs & NGSOs)..........  Based on IB data reports and
                                          actual FY 2011 payment units.
International Bearer Circuits..........  Based on IB reports and
                                          submissions by licensees.
Submarine Cable Licenses...............  Based on IB license
                                          information.
------------------------------------------------------------------------

    9. On May 4, 2012, we released the FY 2012 Notice of Proposed 
Rulemaking \11\ to seek comment on the proposed FY 2012 regulatory 
fees. We received two comments and no reply comments (see Table D). We 
address the issues raised in our FY 2012 Notice of Proposed Rulemaking 
and the comments received below.
---------------------------------------------------------------------------

    \11\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2012, Notice of Proposed Rulemaking, 77 FR 29275 (May 17, 2012) 
(``FY 2012 Regulatory Fees NPRM'').

                       Table D--List of Commenters
------------------------------------------------------------------------
                Commenter                         Abbreviated name
------------------------------------------------------------------------
Critical Messaging Association...........  ``CMA''.
The United States Telecom Association....  ``USTA''.
------------------------------------------------------------------------

A. Regulatory Fee Obligations for AM and FM Radio Stations

    10. The fee methodology for AM and FM radio stations is based on a 
number of factors, including facility attributes (e.g. power, channel/
frequency) and the population served by each station. The calculation 
of the population served is determined by applying current United 
States Census Bureau data to the station's technical and engineering 
data, as detailed in Table E. In FY 2012, the Commission will 
incorporate the results of the 2010 Census data into our broadcast 
population data, which could precipitate a change in population count 
for some radio stations. These

[[Page 46312]]

population counts, along with the station's class and type of service, 
are the basis for determining regulatory fees. We sought comment, but 
did not receive any on this issue. We conclude that the 2010 census 
data should be incorporated into our broadcast population data when 
determining regulatory fees.

 TABLE E--Factors, Measurements, and Calculations That Determine Station
           Signal Contours and Associated Population Coverages
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
                               AM Stations
 
For stations with nondirectional daytime antennas, the theoretical
 radiation was used at all azimuths. For stations with directional
 daytime antennas, specific information on each day tower, including
 field ratio, phasing, spacing and orientation was retrieved, as well as
 the theoretical pattern root-mean-square of the radiation in all
 directions in the horizontal plane (``RMS'') figure milliVolt per meter
 (mV/m) @ 1 km for the antenna system. The standard, or modified
 standard if pertinent, horizontal plane radiation pattern was
 calculated using techniques and methods specified in Sec.  Sec.
 73.150 and 73.152 of the Commission's rules.\12\Radiation values were
 calculated for each of 360 radials around the transmitter site. Next,
 estimated soil conductivity data was retrieved from a database
 representing the information in FCC Figure R3.\13\ 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 was used to form a geographical polygon. Population
 counting was accomplished by determining which 2010 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.
 
                               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.\14\ The resulting distance to principal community contours
 were used to form a geographical polygon. Population counting was
 accomplished by determining which 2010 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.
------------------------------------------------------------------------

B. Regulatory Fee Obligations for Digital Low Power, Class A, and TV 
Translators/Boosters

    11. The digital transition to full-service television stations was 
completed on June 12, 2009, but Low Power, Class A, and TV Translators/
Boosters are not required to make the digital transition until 
September 1, 2015. Historically, we have only considered the digital 
transition in the context of regulatory fees applicable to full-service 
television stations. Consequently, the ``digital only'' exemption does 
not apply to Low Power, Class A, and TV Translator/Booster facilities. 
Because the digital transition in the Low Power, Class A, and TV 
Translator/Booster facilities is still voluntary, these facilities may 
transition from analog to digital service at varying times prior to 
September 1, 2015. During this period of transition, licensees of Low 
Power, Class A, and TV Translator/Booster facilities may be operating 
in analog mode, in digital mode, or in an analog and digital simulcast 
mode. We sought comment on how this should be reflected in the 
regulatory fees paid by licensees of these facilities, but we did not 
receive any comments in response. In the absence of comment, we 
conclude that a single fee will be assessed for each facility 
regardless of whether it transmits in analog or digital mode, digital 
mode, or simulcasting in both analog and digital modes. As more of 
these facilities convert to digital mode, the Commission will revisit 
how regulatory fees will be assessed.
---------------------------------------------------------------------------

    \12\ 47 CFR 73.150 and 73.152.
    \13\ See Map of Estimated Effective Ground Conductivity in the 
United States, 47 CFR 73.190 Figure R3.
    \14\ 47 CFR 73.313.
---------------------------------------------------------------------------

C. Regulatory Fee Obligations of Interstate Telecommunications Service 
Providers

    12. In our FY 2011 Report and Order, we assessed the Interstate 
Telecommunications Service Provider (``ITSP'') industry a regulatory 
fee of $.00375 per revenue dollar. This fee reflected the Commission's 
decision to limit the increase in ITSP regulatory fees in light of the 
continuing decrease in the revenue base upon which ITSP regulatory fees 
are calculated, and pending a more comprehensive rebalancing of ITSP 
fees as part of our reexamination of the factual and methodological 
predicates of our regulatory fee program. This reexamination will 
commence shortly. For that reason we proposed in our FY 2012 Notice of 
Proposed Rulemaking to assess FY 2012 ITSP regulatory fees at the same 
fee rate as in FY 2011, and to allocate the remaining revenue 
requirement across all other fee categories.\15\
---------------------------------------------------------------------------

    \15\ See FY 2012 Regulatory Fees NPRM, at para. 17.
---------------------------------------------------------------------------

    13. We received one comment from the United States Telecom 
Association (``USTA''). USTA supports the Commission's effort to 
rebalance its regulatory fee structure, including updating the 
calculation of full-time equivalents (``FTEs'') and adjusting the way 
costs are currently allocated.\16\ USTA also contends that today's 
separate communication platforms, e.g. wireless, cable, and wireline, 
are capable of providing similar communication services, and it is 
therefore critical for the Commission to establish fee parity among the 
providers utilizing these platforms.\17\
---------------------------------------------------------------------------

    \16\ United States Telecom Association, at page 1.
    \17\ USTA at page 1-2.
---------------------------------------------------------------------------

    14. We have initiated a separate proceeding in which we are 
requesting comment on these and other issues.\18\ Because we expect to 
use the comments that are received and other data in setting next 
year's regulatory fees, we will adopt our proposal to maintain the FY 
2012 ITSP fee rate in the interim at the FY 2011 rate of .00375.
---------------------------------------------------------------------------

    \18\ In the Matter of Procedures for Assessment and Collection 
of Regulatory Fees; Assessment and Collection of Regulatory Fees for 
Fiscal Year 2008, Notice of Proposed Rulemaking, FCC 12-77, MD 
Docket No. 12-201 (released on July 17, 2012).
---------------------------------------------------------------------------

D. Improving Public Information on Waiver Requests and Decisions

    15. In our FY 2012 Notice of Proposed Rulemaking, we sought comment 
on requiring regulatees filing a request for a refund, waiver, fee 
reduction, or

[[Page 46313]]

deferment of payment of an application or regulatory fee to use an 
online filing system rather than submitting their requests in hardcopy 
format.\19\ We believe that an online filing system will complement 
other existing online Commission systems already in place, such as the 
Broadcast Radio and Television Electronic Filing System (more commonly 
referred to as CDBS), the Cable Operations and Licensing System 
(COALS), and Consumer Complaint Forms. The resulting fee waiver filing 
system will include such documents as the filed request, any relevant 
supporting documentation, and the resulting decision. We also proposed 
to apply the provisions of section 0.459 to requests that 
electronically-filed material be withheld from public inspection.\20\
---------------------------------------------------------------------------

    \19\ See FY 2012 Regulatory Fees NPRM at para. 18.
    \20\ Specifically, section 0.457(a)(2) through (g) describe, 
inter alia, how confidential material should be submitted 
electronically, what showings must be made to justify withholding 
electronically-submitted information from public inspection, and how 
the Commission will resolve confidentiality requests.
---------------------------------------------------------------------------

    16. We received no comments on this issue. We will therefore adopt 
our proposal and require that all requests for refunds, waivers, fee 
reductions, or deferments of payment be filed using an online system. 
We direct the Office of Managing Director to take the necessary steps 
to assist regulatees in transitioning to electronic filing.

E. Commercial Mobile Radio Services (``CMRS'') Messaging Service

    17. In response to our FY 2012 Notice of Proposed Rulemaking, the 
Commission received a comment from the Critical Messaging Association 
(``CMA'') regarding the CMRS messaging service regulatory fee category. 
CMA contends that even though the Commission has not acted on its FY 
2008 Further Notice of Proposed Rulemaking to review, among other 
things, the CMRS messaging service fee category, the Commission should 
maintain the CMRS messaging fee at $.08 per subscriber as a minimum 
appropriate action to take in FY 2012.\21\ As stated in paragraph 11, 
we anticipate revising our regulatory fee program in time to calculate 
FY 2013 fees. For that reason, and because we agree with CMA that the 
prevailing circumstances in FY 2003 still exist today,\22\ we find it 
appropriate that the FY 2012 CMRS Messaging regulatory fee remain at a 
rate of $0.08 per subscriber.
---------------------------------------------------------------------------

    \21\ The Critical Messaging Association at page 1.
    \22\ Beginning in FY 2003, the Commission maintained the paging 
regulatory fee rate at $.08 per subscriber, the same level as in FY 
2002, and it has maintained this level of $.08 per subscriber for 
all subsequent years. See Assessment and Collection of Regulatory 
Fees for Fiscal Year 2003, Report and Order, 18 FCC Rcd 15988 paras. 
21-22 (2003) (FY 2003 Report and Order).
---------------------------------------------------------------------------

F. Administrative and Operational Issues

    18. In FY 2009, the Commission implemented several procedural 
changes that simplified the payment and reconciliation processes of 
regulatory fees. In FY 2012, the Commission will continue to promote 
greater use of technology (and less use of paper) in improving our 
regulatory fee notification and collection processes. We sought comment 
on how we might do this, but we received no specific comment in 
response. Accordingly, the Commission will continue its own efforts to 
promote greater efficiency in its regulatory fee notification and 
collection processes, subject to appropriate notice and comment.
    19. In FY 2009, we instituted a mandatory filing requirement using 
the Commission's electronic filing and payment system (also known as 
``Fee Filer'').\23\ Regulatees filing their annual regulatory fee 
payments were required to begin the process by entering the 
Commission's Fee Filer system with a valid FCC Registration Number 
(``FRN'') and password.\24\ This change, which required regulatees to 
use Fee Filer for the filing of annual regulatory fees, not the payment 
of such regulatory fees \25\ was beneficial to both licensees and to 
the Commission. For licensees, the mandatory use of Fee Filer 
eliminates the need to manually complete and submit a hardcopy Form 
159, and for the Commission, the data in electronic format makes it 
much easier to process payments efficiently and effectively. We sought 
comment on how to improve the mandatory use of Fee Filer for filing 
annual regulatory fees. We received no specific comments or reply 
comments on this issue. Accordingly, we will continue our own efforts 
to refine our fee filing and payment procedures, subject to appropriate 
notice and comment.
---------------------------------------------------------------------------

    \23\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year FY 2009, Report and Order 24 FCC Rcd 10301 at paras. 20 and 21 
(``FY 2009 Report and Order'').
    \24\ In order to do this, licensees must have a current and 
valid FRN address on file in the Commission's Registration System 
(CORES).
    \25\ Regulatees have different options when making a payment, 
including credit card, check, and wire transfer.
---------------------------------------------------------------------------

IV. Fee Collection Procedures

    20. Included below are procedural items as well as our current 
payment and collection methods which we have revised over the past 
several years to expedite the processing of regulatory fee payments. We 
do not propose changes to these procedures. Rather, we include them 
here as a useful way of reminding regulatory fee payers and the public 
about these aspects of the annual regulatory fee collection process.

A. Public Notices and Fact Sheets

    21. 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 relevant regulatory fee payment 
procedures. We will continue to post this information on http://transition.fcc.gov/fees/regfees.html, rather than mailing it to 
regulatees.

B. Pre-Bill Notification and Collection of Regulatory Fees

    22. In prior years, the Commission mailed pre-bills via surface 
mail to regulatees in select regulatory fee categories: ITSPs, 
Geostationary (``GSO'') and Non-Geostationary (``NGSO'') satellite 
space station licensees,\26\ holders of Cable Television Relay Service 
(``CARS'') licenses, and Earth Station licensees.\27\ The remaining 
regulatees did not receive pre-bills. In our FY 2009 Report and Order, 
the Commission decided to make the information contained in these pre-
bills viewable in Fee Filer, rather than mailing pre-bills to licensees 
via surface mail.\28\ We continued this practice in FY 2010 and FY 2011 
by placing the pre-bill information on Fee Filer, where it could be 
accessed by regulatees through the Commission's Web site. Regulatees 
can also look to the Commission's Web site for information on upcoming 
events and deadlines relating to regulatory fees.
---------------------------------------------------------------------------

    \26\ 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.
    \27\ 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.
    \28\ See FY 2009 Report and Order at para. 24, 26.
---------------------------------------------------------------------------

C. Assessment Notifications

1. Media Services Licensees
    23. Beginning in FY 2003, we sent fee assessment notifications via 
surface mail to media services entities on a per-

[[Page 46314]]

facility basis.\29\ These 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 
to be more electronic and paperless.\30\ In our FY 2010 Notice of 
Proposed Rulemaking, we sought comment to discontinue mailing the media 
notifications beginning in FY 2011, relying instead on information on 
the Commission's Web site and the use of the Commission-authorized Web 
site at www.fccfees.com.\31\ We received no comments or reply comments 
in FY 2010, and beginning in FY 2011, we discontinued the mailing of 
fee assessment notifications via surface mail to media service 
entities. In FY 2012, we will continue the practice of not mailing 
hardcopy notification assessment letters to media licensees.
---------------------------------------------------------------------------

    \29\ 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.
    \30\ Those refinements include providing licensees with a 
Commission-authorized Web site where they can update or correct any 
information concerning their facilities, and amend their fee-exempt 
status, if need be. The notifications also provide licensees with a 
telephone number to call in the event that they need customer 
assistance.
    \31\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2010, Report and Order, 25 FCC Rcd 9278 at para. 42 (2010) 
(``FY 2010 Report and Order'').
---------------------------------------------------------------------------

2. CMRS Cellular and Mobile Services Assessments
    24. We will continue to follow our current procedures for conveying 
CMRS subscriber counts to providers. We will mail an initial assessment 
letter to Commercial Mobile Radio Service (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'').\32\ The letter will 
include a listing of the carrier's Operating Company Numbers (``OCNs'') 
upon which the assessment is based.\33\ The letters will not include 
OCNs with their respective assigned number counts, but rather, an 
aggregate total of assigned numbers for each carrier.
---------------------------------------------------------------------------

    \32\ 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 
on Reconsideration, 20 FCC Rcd 12259, 12264, paras. 38-44 (2005).
    \33\ Id.
---------------------------------------------------------------------------

    25. A carrier wishing to revise its subscriber count can do so by 
accessing Fee Filer after receiving its initial CMRS assessment letter. 
Providers should follow the prompts in Fee Filer to record their 
subscriber revisions, along with any supporting documentation.\34\ The 
Commission will then review the revised count and supporting 
documentation and either approve or disapprove the submission in Fee 
Filer. If the submission is disapproved, the Commission will contact 
the provider to afford the provider an opportunity to discuss its 
revised subscriber count and/or provide additional supporting 
documentation. If we receive no response or correction to the initial 
assessment letter, or we do not reverse our initial disapproval of the 
provider's revised count submission, we expect the fee payment to be 
based on the number of subscribers listed on the initial assessment 
letter. Once the timeframe for revision has passed, the subscriber 
counts are final and are the basis upon which CMRS regulatory fees are 
expected to be paid. Providers can also view their final subscriber 
counts online in Fee Filer. A final CMRS assessment letter will not be 
mailed out.
---------------------------------------------------------------------------

    \34\ In the supporting documentation, the provider will need to 
state a reason for the change, such as 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.
---------------------------------------------------------------------------

    26. Because some carriers do not file the NRUF report, they may not 
receive an initial assessment letter. In these instances, the carriers 
should compute their fee payment using the standard methodology \35\ 
that is currently in place for CMRS Wireless services (e.g., compute 
their subscriber counts as of December 31, 2011), 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 paid is 
inaccurate, the Commission will bill the carrier for the difference 
between what was paid and what should have been paid.
---------------------------------------------------------------------------

    \35\ See, e.g., Federal Communications Commission, Regulatory 
Fees Fact Sheet: What You Owe--Commercial Wireless Services for FY 
2011 at 1 (rel. September 2011).
---------------------------------------------------------------------------

D. Streamlined Regulatory Fee Payment Process

1. Cable Television
    27. The Commission 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 
report cable subscriber counts on a per community unit identifier 
(``CUID'') basis. This significantly lessens the cable operators' 
burden in calculating and paying their regulatory fees.
2. CMRS Cellular and Mobile Providers
    28. In FY 2006, we streamlined the CMRS payment process by 
eliminating the requirement for CMRS providers to identify their 
individual call signs when making their regulatory fee payment, instead 
allowing CMRS providers to pay their regulatory fees only at the 
aggregate subscriber level without having to identify their various 
call signs.\36\ We will continue this practice in FY 2012. In FY 2007, 
we consolidated the CMRS cellular and CMRS mobile fee categories into 
one fee category with a single fee code, thereby eliminating the 
requirement for CMRS 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 
2012, we will continue this practice of combining the CMRS cellular and 
CMRS mobile fee categories into one regulatory fee category.
---------------------------------------------------------------------------

    \36\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2006, MD Docket No. 06-68, Report and Order, 21 FCC Rcd 8092, 
8105, para. 48 (2006).
---------------------------------------------------------------------------

3. Interstate Telecommunications Service Providers
    29. 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 
worksheet 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, thereby eliminating 
processing issues. For FY 2012, we will continue to round lines 14 and 
16 when calculating the FY 2012 ITSP fee obligation. In addition, we 
will continue the practice of not mailing out Form 159-W via surface 
mail.

E. Payment of Regulatory Fees

1. Lock Box Bank
    30. All lock box payments to the Commission for FY 2012 will be 
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC. 
During the fee season for collecting FY 2012 regulatory fees, 
regulatees can pay their fees by credit card through Pay.gov,\37\ by 
check, money order, or

[[Page 46315]]

debit card,\38\ or by placing their credit card number on Form 159-E 
(Remittance Advice form) and mailing their fee and accompanying Form 
159-E to the following address: Federal Communications Commission, 
Regulatory Fees, P.O. Box 979084, St. Louis, MO 63197-9000. Additional 
payment options and instructions are posted at http://transition.fcc.gov/fees/regfees.html.
---------------------------------------------------------------------------

    \37\ In accordance with U.S. Treasury Financial Manual 
Announcement No. A-2012-02, the U.S. Treasury will reject credit 
card transactions greater than $49,999.99 from a single credit card 
in a single day. This includes online transactions conducted via 
Pay.gov, transactions conducted via other channels, and direct-over-
the counter transactions made at a U.S. Government facility. 
Individual credit card transactions larger than the $49,999.99 limit 
may not be split into multiple transactions using the same credit 
card, whether or not the split transactions are assigned to multiple 
days. Splitting a transaction violates card network and Financial 
Management Service (FMS) rules. However, credit card transactions 
exceeding the daily limit may be split between two or more different 
credit cards. Other alternatives for transactions exceeding the 
$49,999.99 credit card limit include payment by check, electronic 
debit from your bank account, and wire transfer.
    \38\ In accordance with U.S. Treasury Financial Manual 
Announcement No. A-2012-02, the maximum dollar-value limit for debit 
card transactions will be eliminated. It should also be noted that 
only Visa and MasterCard branded debit cards are accepted by 
Pay.gov.
---------------------------------------------------------------------------

2. Receiving Bank for Wire Payments
    31. 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 not to delay crediting their account. Regulatees should discuss 
arrangements (including bank closing schedules) with their bankers 
several days before they plan to make the wire transfer to allow 
sufficient time for the transfer to be initiated and completed before 
the deadline. Complete instructions for making wire payments are posted 
at http://transition.fcc.gov/fees/wiretran.html.
3. De Minimis Regulatory Fees
    32. Regulatees whose total FY 2012 regulatory fee liability, 
including all categories of fees for which payment is due, is less than 
$10 are exempted from payment of FY 2012 regulatory fees.
4. Standard Fee Calculations and Payment Dates
    33. 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 that were granted on or before October 1, 2011 for 
AM/FM radio stations, 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, 2011. In 
instances where a permit or license is transferred or assigned after 
October 1, 2011, 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, 
2011. In instances where a permit or license is transferred or assigned 
after October 1, 2011, 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.\39\
---------------------------------------------------------------------------

    \39\ 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, 2011. The number of subscribers, units, 
or telephone numbers on December 31, 2011 will be used as the basis 
from which to calculate the fee payment. In instances where a permit or 
license is transferred or assigned after October 1, 2011, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
     The first eleven regulatory fee categories in our Schedule 
of Regulatory Fees (see Table B) 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 2012.
     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, 
2011.\40\ Regulatory fees also must be paid for CARS licenses that were 
granted on or before October 1, 2011. In instances where a permit or 
license is transferred or assigned after October 1, 2011, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
---------------------------------------------------------------------------

    \40\ Cable television system operators should compute their 
number of 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 2011, rather than on a count as of December 31, 
2011.
---------------------------------------------------------------------------

     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, 2011. In instances where a permit 
or license is transferred or assigned after October 1, 2011, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
     International Services: Submarine Cable Systems: 
Regulatory fees for submarine cable systems are to be paid on a per 
cable landing license basis based on circuit capacity as of December 
31, 2011. In instances where a license is transferred or assigned after 
October 1, 2011, responsibility for payment rests with the holder of 
the license as of the fee due date. For regulatory fee purposes, the 
allocation in FY 2012 will remain at 87.6 percent for submarine cable 
and 12.4 percent for satellite/terrestrial facilities.
     International Services: Terrestrial and Satellite 
Services: Finally, 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, 2011 
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 as of December 
31, 2011. Whether circuits are used

[[Page 46316]]

specifically for voice or data is not relevant for purposes of 
determining that they are active circuits. In instances where a permit 
or license is transferred or assigned after October 1, 2011, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date. For regulatory fee purposes, the 
allocation in FY 2012 will remain at 87.6 percent for submarine cable 
and 12.4 percent for satellite/terrestrial facilities.

F. Enforcement

    34. To be considered timely, regulatory fee payments must be 
received and stamped at the lockbox bank by the due date of regulatory 
fees. Section 9(c) of the Act requires us to impose a late payment 
penalty of 25 percent of the unpaid amount to be assessed on the first 
day following the deadline date for filing of these fees.\41\ 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 \42\ and in the Debt Collection Improvement Act of 
1996 (``DCIA'').\43\ 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.\44\ 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 payor 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.
---------------------------------------------------------------------------

    \41\ 47 U.S.C. 159(c).
    \42\ See 47 CFR 1.1910.
    \43\ 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.
    \44\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------

    35. 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.\45\ 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).
---------------------------------------------------------------------------

    \45\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.

              TABLE F--FY 2011 Schedule of Regulatory Fees
[Regulatory fees for the first eleven fee categories below 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)............                 25
218-219 MHz (Formerly Interactive Video Data Service)                 65
 (per license) (47 CFR part 95)......................
Marine (Ship) (per station) (47 CFR part 80).........                 10
Marine (Coast) (per license) (47 CFR part 80)........                 50
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)...                 10
Aviation (Ground) (per license) (47 CFR part 87).....                 15
Amateur Vanity Call Signs (per call sign) (47 CFR                   1.42
 part 97)............................................
CMRS Mobile/Cellular Services (per unit) (47 CFR                     .17
 parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20,                 .08
 22, 24 and 90)......................................
Broadband Radio Service (formerly MMDS/MDS) (per                     310
 license) (47 CFR part 21)...........................
Local Multipoint Distribution Service (per call sign)                310
 (47 CFR part 101)...................................
AM Radio Construction Permits........................                490
FM Radio Construction Permits........................                675
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10.....................................             84,625
    Markets 11-25....................................             68,175
    Markets 26-50....................................             40,475
    Markets 51-100...................................             22,750
    Remaining Markets................................              6,100
    Construction Permits.............................              6,100
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10.....................................             34,650
    Markets 11-25....................................             32,950
    Markets 26-50....................................             20,950
    Markets 51-100...................................             12,325
    Remaining Markets................................              3,275
    Construction Permits.............................              3,275
Satellite Television Stations (All Markets)..........              1,250
Construction Permits--Satellite Television Stations..                670
Low Power TV, Class A TV, TV/FM Translators &                        395
 Boosters (47 CFR part 74)...........................
Broadcast Auxiliaries (47 CFR part 74)...............                 10
CARS (47 CFR part 78)................................                370
Cable Television Systems (per subscriber) (47 CFR                    .93
 part 76)............................................
Interstate Telecommunication Service Providers (per               .00375
 revenue dollar).....................................

[[Page 46317]]

 
Earth Stations (47 CFR part 25)......................                245
Space Stations (per operational station in                       131,375
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100)................................................
Space Stations (per operational system in non-                   141,750
 geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits--Terrestrial/Satellites                .35
 (per 64KB circuit)..................................
International Bearer Circuits--Submarine Cable.......    See Table Below
------------------------------------------------------------------------


                                                     FY 2011 Schedule of Regulatory Fees (Continued)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          FY 2011 Radio Station Regulatory Fees
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                          FM Classes  A,  FM Classes  B,
                    Population served                       AM Class A      AM Class B      AM Class C      AM Class D        B1 & C3     C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................            $700            $575            $525            $600            $675            $850
25,001-75,000...........................................           1,400           1,150             800             900           1,350           1,500
75,001-150,000..........................................           2,100           1,450           1,050           1,500           1,850           2,750
150,001-500,000.........................................           3,150           2,450           1,575           1,800           2,875           3,600
500,001-1,200,000.......................................           4,550           3,750           2,625           3,000           4,550           5,300
1,200,001-3,000,00......................................           7,000           5,750           3,950           4,800           7,425           8,500
>3,000,000..............................................           8,400           6,900           5,000           6,000           9,450          11,050
--------------------------------------------------------------------------------------------------------------------------------------------------------


                   FY 2011 Schedule of Regulatory Fees
            [International bearer circuits--submarine cable]
------------------------------------------------------------------------
   Submarine cable systems
(capacity as of  December 31,    Fee amount             Address
            2010)
------------------------------------------------------------------------
< 2.5 Gbps...................         $12,825  FCC, International, P.O.
                                                Box 979084, St. Louis,
                                                MO 63197-9000.
2.5 Gbps or greater, but less          25,650  FCC, International, P.O.
 than 5 Gbps.                                   Box 979084, St. Louis,
                                                MO 63197-9000.
5 Gbps or greater, but less            51,300  FCC, International, P.O.
 than 10 Gbps.                                  Box 979084, St. Louis,
                                                MO 63197-9000.
10 Gbps or greater, but less          102,625  FCC, International, P.O.
 than 20 Gbps.                                  Box 979084, St. Louis,
                                                MO 63197-9000.
20 Gbps or greater...........         205,225  FCC, International, P.O.
                                                Box 979084, St. Louis,
                                                MO 63197-9000.
------------------------------------------------------------------------

Final Regulatory Flexibility Analysis

    36. As required by the Regulatory Flexibility Act (``RFA''),\46\ 
the Commission prepared an Initial Regulatory Flexibility Analysis 
(``IRFA'') in its Notice of Proposed Rulemaking (NPRM) to determine the 
possible economic impact on small entities by the policies and rules 
proposed in its NPRM. Written public comments were sought on the FY 
2012 fee proposal, including on the IRFA. This Final Regulatory 
Flexibility Analysis (``FRFA'') conforms to the RFA.\47\
---------------------------------------------------------------------------

    \46\ 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'').
    \47\ 5 U.S.C. 604.
---------------------------------------------------------------------------

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

    37. This rulemaking proceeding was initiated by the Commission to 
revise its Schedule of Regulatory Fees to collect $339,844,000, the 
amount that Congress has required the Commission to recover in 
regulatory fees. This Report and Order revises the fee rates in its 
Schedule of Regulatory Fees to reflect changes in estimated unit 
counts, if any, and the amount required by the Commission to collect in 
regulatory fees. Pursuant to rules adopted in this Order, the FCC will 
collect these fees in September 2012 in a manner that is efficient 
(e.g. using the Commission's various electronic filing and payment 
systems) and without undue public burden (less reliability on paper 
transactions and more reliability on pre-loaded payment data).
    38. Section 9(a)(1) of the Communications Act of 1934, as amended 
(the ``Act'') directs the Commission to collect regulatory fees ``to 
recover the costs of * * * enforcement activities, policy and 
rulemaking activities, user information services, and international 
activities.'' \48\ Section 9(a)(2) stipulates that regulatory fees for 
the enumerated activities ``shall be collected only if, and only in the 
total amounts, required in Appropriation Acts,'' and must ``be 
established in amounts that will result in collection, during each 
fiscal year, of any amount that can be reasonably be expected to equal 
the amount appropriated'' for the performance of the activities 
enumerated in section 9(a)(1) during that fiscal year. In this annual 
regulatory fee proceeding, we retain many of the current 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 September 2012 filing window in order to collect the required amount 
by the end of our fiscal year.\49\
---------------------------------------------------------------------------

    \48\ 47 U.S.C. 159(a).
    \49\ The Commission also expects to release in the near future a 
Notice of Proposed Rulemaking that will propose to update our 
current cost allocation percentages and revise our cost allocation 
methodology. We expect to implement any changes that result from 
this rulemaking in FY 2013; they do not affect the fees set in this 
FY 2012 Report and Order.

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

[[Page 46318]]

    39. In this FY 2012 Report and Order, we address the following 
issues: (1) Incorporating 2010 Census data into our broadcast 
population data, (2) assessing a regulatory fee for each broadcasting 
facility operating either in an analog or digital mode (but not both) 
for Low Power, Class A, and TV Translators/Boosters, (3) maintaining 
the FY 2012 Interstate Telecommunications Service Provider (ITSP) fee 
rate at the same level as in FY 2011, (4) using an online filing system 
for the filing of requests for a refund, waiver, fee reduction, or 
deferment of payment of an application or regulatory fee, and (5) 
maintaining the Commercial Mobile Radio Service (``CMRS'') Messaging 
Service at the rate of $.08 per subscriber.
     Regulatory Fee Obligations for AM and FM Radio Stations: 
The fee methodology for AM and FM radio stations is based on a number 
of factors, including facility attributes (e.g. power, channel/
frequency) and the population served by each station. The calculation 
of the population served is determined by applying current United 
States Census Bureau data to the station's technical and engineering 
data, as detailed in Table E of this Report and Order. In FY 2012, the 
Commission will incorporate the results of the 2010 Census data into 
our broadcast population data, which could precipitate a change in 
population count for some radio stations. These population counts, 
along with the station's class and type of service, are the basis for 
determining regulatory fees.
     Regulatory Fee Obligations for Digital Low Power, Class A, 
and TV Translators/Boosters: The digital transition to full-service 
television stations was completed on June 12, 2009, but Low Power, 
Class A, and TV Translators/Boosters are not required to make the 
digital transition until September 1, 2015. Historically, we have only 
considered the digital transition in the context of regulatory fees 
applicable to full-service television stations. Consequently, the 
``digital only'' exemption does not apply to Low Power, Class A, and TV 
Translator/Booster facilities. Because the digital transition in the 
Low Power, Class A, and TV Translator/Booster facilities is still 
voluntary, these facilities may transition from analog to digital 
service at varying times prior to September 1, 2015. During this period 
of transition, licensees of Low Power, Class A, and TV Translator/
Booster facilities may be operating in analog mode, in digital mode, or 
in an analog and digital simulcast mode. In the absence of receiving 
any comments, we conclude that a single fee will be assessed for each 
facility regardless of whether it transmits in analog or digital mode, 
digital mode, or simulcasting in both analog and digital modes. As more 
of these facilities convert to digital mode, the Commission will 
revisit how regulatory fees will be assessed.
     Regulatory Fee Obligations of Interstate 
Telecommunications Service Providers (ITSP): In our FY 2011 Report and 
Order, we assessed the Interstate Telecommunications Service Provider 
(``ITSP'') industry a regulatory fee of $.00375 per revenue dollar. 
This fee reflected the Commission's decision to limit the increase in 
ITSP regulatory fees in light of the continuing decrease in the revenue 
base upon which ITSP regulatory fees are calculated, and pending a more 
comprehensive rebalancing of ITSP fees as part of our reexamination of 
the factual and methodological predicates of our regulatory fee 
program. This reexamination will commence shortly. In our FY 2012 
Notice of Proposed Rulemaking, we proposed to assess FY 2012 ITSP 
regulatory fees at the same fee rate as in FY 2011, and to allocate the 
remaining revenue requirement across all other fee categories.\50\ We 
received one comment in support of our proposal. Because we will 
initiate a separate proceeding in the near future to examine these and 
other issues and expect to utilize any new data or methodologies 
adopted in setting next year's regulatory fees, we conclude that in the 
interim the FY 2012 ITSP fee rate should be maintained at the FY 2011 
rate of .00375.
---------------------------------------------------------------------------

    \50\ See FY 2012 Regulatory Fees NPRM, at para. 17.
---------------------------------------------------------------------------

     Improving Public Information on Waiver Requests and 
Decisions: In our FY 2012 Notice of Proposed Rulemaking, we sought 
comment on requiring regulatees filing a request for a refund, waiver, 
fee reduction, or deferment of payment of an application or regulatory 
fee to use an online filing system rather than submitting their 
requests in hardcopy format.\51\ We believe that an online filing 
system will complement other existing online Commission systems already 
in place, such as the Broadcast Radio and Television Electronic Filing 
System (more commonly referred to as CDBS), the Cable Operations and 
Licensing System (COALS), and Consumer Complaint Forms. The resulting 
fee waiver filing system will include such documents as the filed 
request, any relevant supporting documentation, and the resulting 
decision. We also proposed to apply the provisions of section 0.459 to 
requests that electronically-filed material be withheld from public 
inspection.\52\ We received no comments on this issue. We therefore 
adopt our proposal and require that all requests for refunds, waivers, 
fee reductions, or deferments of payment be filed using an online 
system. We direct the Office of Managing Director to take the necessary 
steps to assist regulatees in transitioning to electronic filing.
---------------------------------------------------------------------------

    \51\ See FY 2012 Regulatory Fees NPRM at para. 18.
    \52\ Specifically, section 0.457(a) (2) through (g) describe, 
inter alia, how confidential material should be submitted 
electronically, what showings must be made to justify withholding 
electronically-submitted information from public inspection, and how 
the Commission will resolve confidentiality requests.
---------------------------------------------------------------------------

     Commercial Mobile Radio Services (``CMRS'') Messaging 
Services: In our FY 2012 Notice of Proposed Rulemaking, the Commission 
proposed to maintain the CMRS Messaging fee rate at $.08 per 
subscriber. We received one comment in support of our action. Because 
the prevailing circumstances that first initiated our action in FY 2003 
\53\ still exists today, we find it appropriate that the FY 2012 CMRS 
Messaging regulatory fee remain at a rate of $0.08 per subscriber.
---------------------------------------------------------------------------

    \53\ Beginning in FY 2003, the Commission maintained the paging 
regulatory fee rate at $.08 per subscriber, the same level as in FY 
2002, and it has maintained this level of $.08 per subscriber for 
all subsequent years. See Assessment and Collection of Regulatory 
Fees for Fiscal Year 2003, Report and Order, 18 FCC Rcd 15988 paras. 
21-22 (2003) (FY 2003 Report and Order).
---------------------------------------------------------------------------

    Administrative and Operational Issues: In FY 2009, we instituted a 
mandatory filing requirement using the Commission's electronic filing 
and payment system (also known as ``Fee Filer'').\54\ Regulatees filing 
their annual regulatory fee payments were required to begin the process 
by entering the Commission's Fee Filer system with a valid FCC 
Registration Number (``FRN'') and password.\55\ This change, which 
required regulatees to use Fee Filer for the filing of annual 
regulatory fees, not the payment of such regulatory fees \56\ was 
beneficial to both licensees and to the Commission. For licensees, the

[[Page 46319]]

mandatory use of Fee Filer eliminates the need to manually complete and 
submit a hardcopy Form 159, and for the Commission, the data in 
electronic format makes it much easier to process payments efficiently 
and effectively. We received no specific comment to our general 
inquiry. Accordingly, the Commission will continue its efforts to 
promote greater efficiency in its regulatory fee notification and 
collection processes, subject to appropriate notice and comment.
---------------------------------------------------------------------------

    \54\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year FY 2009, Report and Order 24, FCC Rcd 10301 at paras. 20 and 21 
(``FY 2009 Report and Order'').
    \55\ In order to do this, licensees must have a current and 
valid FRN address on file in the Commission's Registration System 
(CORES).
    \56\ Regulatees have different options when making a payment, 
including credit card, check, and wire transfer.
---------------------------------------------------------------------------

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

    40. 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

    41. 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.\57\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \58\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\59\ 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.\60\
---------------------------------------------------------------------------

    \57\ 5 U.S.C. 603(b)(3).
    \58\ 5 U.S.C. 601(6).
    \59\ 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.''
    \60\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    42. Small Businesses. Nationwide, there are a total of 
approximately 29.6 million small businesses, according to the SBA.\61\
---------------------------------------------------------------------------

    \61\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' http://web.sba.gov/faqs (accessed Jan. 2009).
---------------------------------------------------------------------------

    43. Small Businesses, Small Organizations, and Small Governmental 
Jurisdictions.
    Our action may, over time, affect small entities that are not 
easily categorized at present. We therefore describe here, at the 
outset, three comprehensive, statutory small entity size standards.\62\ 
First, nationwide, there are a total of approximately 27.5 million 
small businesses, according to the SBA.\63\ In addition, a ``small 
organization'' is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
\64\ Nationwide, as of 2007, there were approximately 1,621,315 small 
organizations.\65\ Finally, 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.'' \66\ Census Bureau data for 
2011 indicate that there were 89,476 local governmental jurisdictions 
in the United States.\67\ We estimate that, of this total, as many as 
88, 506 entities may qualify as ``small governmental jurisdictions.'' 
\68\ Thus, we estimate that most governmental jurisdictions are small.
---------------------------------------------------------------------------

    \62\ See 5 U.S.C. 601(3)-(6).
    \63\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' web.sba.gov/faqs (last visited May 6,2011; figures are 
from 2009).
    \64\ 5 U.S.C. 601(4).
    \65\ Independent Sector, The New Nonprofit Almanac & Desk 
Reference (2010).
    \66\ 5 U.S.C. 601(5).
    \67\ U.S. Census Bureau, Statistical Abstract of the United 
States: 2011, Table 427 (2007)
    \68\ The 2007 U.S Census data for small governmental 
organizations indicate that there were 89, 476 ``Local Governments'' 
in 2007. (U.S. Census Bureau, Statistical Abstract of the United 
States 2011, Table 428.) The criterion by which the size of such 
local governments is determined to be small is a population of 
50,000. However, since the Census Bureau does not specifically apply 
that criterion, it cannot be determined with precision how many of 
such local governmental organizations is small. Nonetheless, the 
inference seems reasonable that substantial number of these 
governmental organizations has a population of less than 50, 000. To 
look at Table 428 in conjunction with a related set of data in Table 
429 in the Census's Statistical Abstract of the U.S., that inference 
is further supported by the fact that in both Tables, many entities 
that may well be small are included in the 89,476 local governmental 
organizations, e.g. county, municipal, township and town, school 
district and special district entities. Measured by a criterion of a 
population of 50,000 many specific sub-entities in this category 
seem more likely than larger county-level governmental organizations 
to have small populations. Accordingly, of the 89,746 small 
governmental organizations identified in the 2007 Census, the 
Commission estimates that a substantial majority is small. 68 13 CFR 
121.201, NAICS code 517110.
---------------------------------------------------------------------------

    44. Incumbent Local Exchange Carriers (Incumbent LECs). 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.\69\ Census Bureau data for 
2007, which now supersede data from the 2002 Census, show that there 
were 3,188 firms in this category that operated for the entire year. Of 
this total, 3,144 had employment of 999 or fewer, and 44 firms had had 
employment of 1,000 or more. According to Commission data, 1,307 
carriers reported that they were incumbent local exchange service 
providers.\70\ Of these 1,307 carriers, an estimated 1,006 have 1,500 
or fewer employees and 301 have more than 1,500 employees.\71\ 
Consequently, the Commission estimates that most providers of local 
exchange service are small entities that may be affected by the rules 
and policies proposed in the NPRM. Thus under this category and the 
associated small business size standard, the majority of these 
incumbent local exchange service providers can be considered small 
providers.\72\
---------------------------------------------------------------------------

    \70\ See Trends in Telephone Service, Federal Communications 
Commission, Wireline Competition Bureau, Industry Analysis and 
Technology Division at Table 5.3 (Sept. 2010) (``Trends in Telephone 
Service'').
    \71\ See id.
    \72\ See http://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

    45. Competitive Local Exchange Carriers (Competitive LECs), 
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.\73\ Census Bureau data for 2007 show that there were 3,188 
firms in this category that operated for the entire year. Of this 
total, 3,144 had employment of 999 or fewer, and 44 firms had had 
employment of 1,000 employees or more. Thus under this category and the 
associated small business size standard, the majority of these 
Competitive LECs, CAPs, Shared-Tenant Service Providers, and Other 
Local Service Providers can be considered small entities.\74\ According 
to Commission data, 1,442 carriers reported that they were engaged in 
the provision of either competitive local exchange services or 
competitive access provider services.\75\ Of these 1,442 carriers, an 
estimated 1,256 have 1,500

[[Page 46320]]

or fewer employees and 186 have more than 1,500 employees.\76\ In 
addition, 17 carriers have reported that they are Shared-Tenant Service 
Providers, and all 17 are estimated to have 1,500 or fewer 
employees.\77\ In addition, 72 carriers have reported that they are 
Other Local Service Providers.\78\ Of the 72, seventy have 1,500 or 
fewer employees and two have more than 1,500 employees.\79\ 
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 rules adopted pursuant to the 
NPRM.
---------------------------------------------------------------------------

    \73\ 13 CFR 121.201, NAICS code 517110.
    \74\ See http://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
    \75\ See Trends in Telephone Service, at tbl. 5.3.
    \76\ Id.
    \77\ Id.
    \78\ Id.
    \79\ Id.
---------------------------------------------------------------------------

    46. 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.\80\ Census data for 2007 show that 1,523 firms provided 
resale services during that year. Of that number, 1,522 operated with 
fewer than 1000 employees and one operated with more than 1,000.\81\ 
Thus under this category and the associated small business size 
standard, the majority of these local resellers can be considered small 
entities. According to Commission data, 213 carriers have reported that 
they are engaged in the provision of local resale services.\82\ Of 
these, an estimated 211 have 1,500 or fewer employees and two have more 
than 1,500 employees.\83\ Consequently, the Commission estimates that 
the majority of local resellers are small entities that may be affected 
by rules adopted pursuant to the Notice.
---------------------------------------------------------------------------

    \80\ 13 CFR 121.201, NAICS code 517911.
    \81\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=800&-ds_name=EC0751SSSZ5&-_lang=en.
    \82\ See Trends in Telephone Service, at tbl. 5.3.
    \83\ Id.
---------------------------------------------------------------------------

    47. 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.\84\ Census data for 2007 show that 1,523 firms provided 
resale services during that year. Of that number, 1,522 operated with 
fewer than 1,000 employees and one operated with more than 1,000.\85\ 
Thus under this category and the associated small business size 
standard, the majority of these resellers can be considered small 
entities. According to Commission data,\86\ 881 carriers have reported 
that they are engaged in the provision of toll resale services. Of 
these, an estimated 857 have 1,500 or fewer employees and 24 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 rules.
---------------------------------------------------------------------------

    \84\ 13 CFR 121.201, NAICS code 517911.
    \85\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=800&-ds_name=EC0751SSSZ5&-_lang=en.
    \86\ Trends in Telephone Service, at tbl. 5.3.
---------------------------------------------------------------------------

    48. Payphone Service Providers (PSPs). Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
payphone services providers. The appropriate size standard under SBA 
rules is for the category Wired Telecommunications Carriers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees.\87\ Census Bureau data for 2007 shows that there were 3,188 
firms in this category that operated for the entire year. Of this 
total, 3,144 had employment of 999 or fewer, and 44 firms had had 
employment of 1,000 employees or more. Thus under this category and the 
associated small business size standard, the majority of these PSPs can 
be considered small entities.\88\ According to Commission data,\89\ 657 
carriers have reported that they are engaged in the provision of 
payphone services. Of these, an estimated 653 have 1,500 or fewer 
employees and four 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 action.
---------------------------------------------------------------------------

    \87\ 13 CFR 121.201, NAICS code 517110.
    \88\ See http://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
    \89\ Trends in Telephone Service, at tbl. 5.3.
---------------------------------------------------------------------------

    49. Interexchange Carriers. 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.\90\ Census Bureau data for 2007 shows that there were 3,188 
firms in this category that operated for the entire year. Of this 
total, 3,144 had employment of 999 or fewer, and 44 firms had had 
employment of 1,000 employees or more. Thus under this category and the 
associated small business size standard, the majority of these 
Interexchange carriers can be considered small entities.\91\ According 
to Commission data, 359 companies reported that their primary 
telecommunications service activity was the provision of interexchange 
services.\92\ Of these 359 companies, an estimated 317 have 1,500 or 
fewer employees and 42 have more than 1,500 employees.\93\ 
Consequently, the Commission estimates that the majority of 
interexchange service providers are small entities that may be affected 
by rules adopted pursuant to the NPRM.
---------------------------------------------------------------------------

    \90\ 13 CFR 121.201, NAICS code 517110.
    \91\ See http://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
    \92\ See Trends in Telephone Service, at tbl. 5.3.
    \93\ Id.
---------------------------------------------------------------------------

    50. 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.\94\ Census Bureau data for 2007 show that there were 3,188 
firms in this category that operated for the entire year. Of this 
total, 3,144 had employment of 999 or fewer, and 44 firms had had 
employment of 1,000 employees or more. Thus under this category and the 
associated small business size standard, the majority of these 
Interexchange carriers can be considered small entities.\95\ According 
to Commission data, 33 carriers have reported that they are engaged in 
the provision of operator services. Of these, an estimated 31 have 
1,500 or fewer employees and 2 have more than 1,500 employees.\96\ 
Consequently, the Commission estimates that the majority of OSPs are 
small entities that may be affected by our proposed rules.
---------------------------------------------------------------------------

    \94\ 13 CFR 121.201, NAICS code 517110.
    \95\ See http://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
    \96\ Trends in Telephone Service, at tbl. 5.3.
---------------------------------------------------------------------------

    51. 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.\97\ Census data for 2007 show that 1,523 firms provided 
resale services during that year. Of that number, 1,522 operated with 
fewer than 1000 employees and one operated with more

[[Page 46321]]

than 1,000.\98\ Thus under this category and the associated small 
business size standard, the majority of these prepaid calling card 
providers can be considered small entities. According to Commission 
data, 193 carriers have reported that they are engaged in the provision 
of prepaid calling cards.\99\ Of these, all 193 have 1,500 or fewer 
employees and none have more than 1,500 employees.\100\ Consequently, 
the Commission estimates that the majority of prepaid calling card 
providers are small entities that may be affected by rules adopted 
pursuant to the Notice.
---------------------------------------------------------------------------

    \97\ 13 CFR 121.201, NAICS code 517911.
    \98\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=800&-ds_name=EC0751SSSZ5&-_lang=en.
    \99\ See Trends in Telephone Service, at tbl. 5.3.
    \100\ Id.
---------------------------------------------------------------------------

    52. 800 and 800-Like Service Subscribers.\101\ 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.\102\ Census data for 2007 
show that 1,523 firms provided resale services during that year. Of 
that number, 1,522 operated with fewer than 1000 employees and one 
operated with more than 1,000.\103\ Thus under this category and the 
associated small business size standard, the majority of resellers in 
this classification can be considered small entities. To focus 
specifically on the number of subscribers than on those firms which 
make subscription service available, the most reliable source of 
information regarding the number of these service subscribers appears 
to be data the Commission collects on the 800, 888, 877, and 866 
numbers in use.\104\ According to our data for September 2009, the 
number of 800 numbers assigned was 7,860,000; the number of 888 numbers 
assigned was 5,888,687; the number of 877 numbers assigned was 
4,721,866; and the number of 866 numbers assigned was 7,867,736. The 
Commission does not have data specifying the number of these 
subscribers that are not independently owned and operated or have more 
than 1,500 employees, and thus are unable at this time to estimate with 
greater precision the number of toll free subscribers that would 
qualify as small businesses under the SBA size standard. Consequently, 
the Commission estimates that there are 7,860,000 or fewer small entity 
800 subscribers; 5,888,687 or fewer small entity 888 subscribers; 
4,721,866 or fewer small entity 877 subscribers; and 7,867,736 or fewer 
small entity 866 subscribers.
---------------------------------------------------------------------------

    \101\ We include all toll-free number subscribers in this 
category, including those for 888 numbers.
    \102\ 13 CFR 121.201, NAICS code 517911.
    \103\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=800&-ds_name=EC0751SSSZ5&-_lang=en.
    \104\ Trends in Telephone Service, at tbls. 18.4, 18.5, 18.6, 
18.7.
---------------------------------------------------------------------------

    53. Satellite Telecommunications Providers. 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.\105\ The second has a size standard of $25 
million or less in annual receipts.\106\
---------------------------------------------------------------------------

    \105\ 13 CFR 121.201, NAICS code 517410.
    \106\ 13 CFR 121.201, NAICS code 517919.
---------------------------------------------------------------------------

    54. 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.'' \107\ Census Bureau data for 2007 show that 512 
Satellite Telecommunications firms that operated for that entire 
year.\108\ Of this total, 464 firms had annual receipts of under $10 
million, and 18 firms had receipts of $10 million to $24,999,999.\109\ 
Consequently, the Commission estimates that the majority of Satellite 
Telecommunications firms are small entities that might be affected by 
our action.
---------------------------------------------------------------------------

    \107\ U.S. Census Bureau, 2007 NAICS Definitions, 517410 
Satellite Telecommunications.
    \108\ See http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=900&-ds_name=EC0751SSSZ4&-_lang=en.
    \109\ See http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=900&-ds_name=EC0751SSSZ4&-_lang=en.
---------------------------------------------------------------------------

    55. The second category, i.e. ``All Other Telecommunications'' 
comprises ``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. 
Establishments providing Internet services or voice over Internet 
protocol (VoIP) services via client-supplied telecommunications 
connections are also included in this industry.'' \110\ For this 
category, Census Bureau data for 2007 shows that there were a total of 
2,383 firms that operated for the entire year.\111\ Of this total, 
2,347 firms had annual receipts of under $25 million and 12 firms had 
annual receipts of $25 million to $49, 999,999.\112\ Consequently, the 
Commission estimates that the majority of All Other Telecommunications 
firms are small entities that might be affected by our action.
---------------------------------------------------------------------------

    \110\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517919&search=2007%20NAICS%20Search.
    \111\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=900&-ds_name=EC0751SSSZ4&-_lang=en.
    \112\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=900&-ds_name=EC0751SSSZ4&-_lang=en.
---------------------------------------------------------------------------

    56. Wireless Telecommunications Carriers (except satellite). This 
industry comprises establishments engaged in operating and maintaining 
switching and transmission facilities to provide communications via the 
airwaves. Establishments in this industry have spectrum licenses and 
provide services using that spectrum, such as cellular phone services, 
paging services, wireless Internet access, and wireless video 
services.\113\ The appropriate size standard under SBA rules is for the 
category Wireless Telecommunications Carriers. The size standard for 
that category is that a business is small if it has 1,500 or fewer 
employees.\114\ Under the present and prior categories, the SBA has 
deemed a wireless business to be small if it has 1,500 or fewer 
employees.\115\ For this category, census data for 2007 show that there 
were 1,383 firms that operated for the entire year.\116\ Of this total, 
1,368 firms had employment of 999 or fewer employees and 15 had 
employment of 1000 employees or more.\117\ Thus under this category and 
the associated small business size standard,, the Commission estimates 
that the majority of wireless telecommunications carriers (except

[[Page 46322]]

satellite) are small entities that may be affected by our proposed 
action.\118\
---------------------------------------------------------------------------

    \113\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517210&search=2007%20NAICS%20Search
    \114\ 13 CFR 121.201, NAICS code 517210.
    \115\ 13 CFR 121.201, NAICS code 517210. The now-superseded, 
pre-2007 CFR citations were 13 CFR 121.201, NAICS codes 517211 and 
517212 (referring to the 2002 NAICS).
    \116\ U.S. Census Bureau, Subject Series: Information, Table 5, 
``Establishment and Firm Size: Employment Size of Firms for the 
United States: 2007 NAICS Code 517210'' (issued Nov. 2010).
    \117\ Id. Available 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 
``100 employees or more.''
    \118\ See http://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en
---------------------------------------------------------------------------

    57. Licenses Assigned by Auctions. Initially, we note that, as a 
general matter, the number of winning bidders that qualify as small 
businesses at the close of an auction does not necessarily represent 
the number of small businesses currently in service. Also, the 
Commission does not generally track subsequent business size unless, in 
the context of assignments or transfers, unjust enrichment issues are 
implicated.
    58. Paging Services. Neither the SBA nor the FCC has developed a 
definition applicable exclusively to paging services. However, a 
variety of paging services is now categorized under Wireless 
Telecommunications Carriers (except satellite).\119\ This industry 
comprises establishments engaged in operating and maintaining switching 
and transmission facilities to provide communications via the airwaves. 
Establishments in this industry have spectrum licenses and provide 
services using that spectrum, such as cellular phone services, paging 
services, wireless Internet access, and wireless video services. 
Illustrative examples in the paging context include paging services, 
except satellite; two-way paging communications carriers, except 
satellite; and radio paging services communications carriers. The SBA 
has deemed a paging service in this category to be small if it has 
1,500 or fewer employees.\120\ For this category, census data for 2007 
show that there were 1,383 firms that operated for the entire 
year.\121\ Of this total, 1,368 firms had employment of 999 or fewer 
employees and 15 had employment of 1000 employees or more.\122\ Thus 
under this category and the associated small business size standard, 
the Commission estimates that the majority of paging services in the 
category of wireless telecommunications carriers (except satellite) are 
small entities that may be affected by our proposed action.\123\
---------------------------------------------------------------------------

    \119\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210 
Wireless Telecommunications Categories (Except Satellite)''; http://www.census.gov/naics/2007/def/ND517210.HTM#N517210.
    \120\ U.S. Census Bureau, 2007 NAICS Definitions, ``517210 
Wireless Telecommunications Categories (Except Satellite).''
    \121\ U.S. Census Bureau, Subject Series: Information, Table 5, 
``Establishment and Firm Size: Employment Size of Firms for the 
United States: 2007 NAICS Code 517210'' (issued Nov. 2010).
    \122\ Id. Available 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 
``100 employees or more.''
    \123\ See http://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

    59. 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.\124\ 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.\125\ 
The SBA has approved this definition.\126\ An initial auction of 
Metropolitan Economic Area (``MEA'') licenses was conducted in the year 
2000. Of the 2,499 licenses auctioned, 985 were sold.\127\ Fifty-seven 
companies claiming small business status won 440 licenses.\128\ A 
subsequent auction of MEA and Economic Area (``EA'') licenses was held 
in the year 2001. Of the 15,514 licenses auctioned, 5,323 were 
sold.\129\ 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, was held in 2003. Seventy-seven bidders claiming small or very 
small business status won 2,093 licenses.\130\ A fourth auction of 
9,603 lower and upper band paging licenses was held in the year 2010. 
29 bidders claiming small or very small business status won 3,016 
licenses.
---------------------------------------------------------------------------

    \124\ Revision of Part 22 and Part 90 of the Commission's Rules 
to Facilitate Future Development of Paging Systems, Second Report 
and Order, 12 FCC Rcd 2732, 2811-2812, paras. 178-181 (``Paging 
Second Report and Order''); see also Revision of Part 22 and Part 90 
of the Commission's Rules to Facilitate Future Development of Paging 
Systems, Memorandum Opinion and Order on Reconsideration, 14 FCC Rcd 
10030, 10085-10088, paras. 98-107 (1999).
    \125\ Paging Second Report and Order, 12 FCC Rcd at 2811, para. 
179.
    \126\ 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'').
    \127\ See ``929 and 931 MHz Paging Auction Closes,'' Public 
Notice, 15 FCC Rcd 4858 (WTB 2000).
    \128\ See id.
    \129\ See ``Lower and Upper Paging Band Auction Closes,'' Public 
Notice, 16 FCC Rcd 21821 (WTB 2002).
    \130\ See ``Lower and Upper Paging Bands Auction Closes,'' 
Public Notice, 18 FCC Rcd 11154 (WTB 2003). The current number of 
small or very small business entities that hold wireless licenses 
may differ significantly from the number of such entities that won 
in spectrum auctions due to assignments and transfers of licenses in 
the secondary market over time. In addition, some of the same small 
business entities may have won licenses in more than one auction.
---------------------------------------------------------------------------

    60. 2.3 GHz 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.\131\ The 
SBA approved these definitions.\132\ The Commission conducted an 
auction of geographic area licenses in the WCS service in 1997. In the 
auction, seven bidders that qualified as very small business entities 
won 31 licenses, and one bidder that qualified as a small business 
entity won a license.
---------------------------------------------------------------------------

    \131\ 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).
    \132\ See Alvarez Letter 1998.
---------------------------------------------------------------------------

    61. 1670-1675 MHz Services. This service can be used for fixed and 
mobile uses, except aeronautical mobile.\133\ An auction for one 
license in the 1670-1675 MHz band was conducted in 2003. The Commission 
defined a ``small business'' as an entity with attributable average 
annual gross revenues of not more than $40 million for the preceding 
three years, which would thus be eligible for a 15 percent discount on 
its winning bid for the 1670-1675 MHz band license. Further, the 
Commission defined a ``very small business'' as an entity with 
attributable average annual gross revenues of not more than $15 million 
for the preceding three years, which would thus be eligible to receive 
a 25 percent discount on its winning bid for the 1670-1675 MHz band 
license. The winning bidder was not a small entity.
---------------------------------------------------------------------------

    \133\ 47 CFR 2.106; see generally 47 CFR 27.1-.70.
---------------------------------------------------------------------------

    62. 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 standard for Wireless Telecommunications Carriers (except 
Satellite).\134\ Under the SBA small business size standard, a business 
is small if it has 1,500 or fewer employees.\135\ Census data for 2007 
shows that there were 1,383 firms that operated that year.\136\ Of 
those 1,383, 1,368 had fewer than 100 employees, and 15 firms had more 
than 100

[[Page 46323]]

employees. Thus under this category and the associated small business 
size standard, the majority of firms can be considered small. According 
to Trends in Telephone Service data, 434 carriers reported that they 
were engaged in wireless telephony.\137\ Of these, an estimated 222 
have 1,500 or fewer employees and 212 have more than 1,500 
employees.\138\ Therefore, approximately half of these entities can be 
considered small. Similarly, according to Commission data, 413 carriers 
reported that they were engaged in the provision of wireless telephony, 
including cellular service, Personal Communications Service (PCS), and 
Specialized Mobile Radio (SMR) Telephony services.\139\ Of these, an 
estimated 261 have 1,500 or fewer employees and 152 have more than 
1,500 employees.\140\ Consequently, the Commission estimates that 
approximately half or more of these firms can be considered small. 
Thus, using available data, we estimate that the majority of wireless 
firms can be considered small.
---------------------------------------------------------------------------

    \134\ 13 CFR 121.201, NAICS code 517210.
    \135\ Id.
    \136\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 
NAICS code 517210 (rel. Oct. 20, 2009), http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
    \137\ Trends in Telephone Service, at Table 5.3.
    \138\ Id.
    \139\ See Trends in Telephone Service, at tbl. 5.3.
    \140\ See id.
---------------------------------------------------------------------------

    63. Broadband Personal Communications Service. 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 initially defined a ``small business'' for C- and F-Block 
licenses as an entity that has average gross revenues of $40 million or 
less in the three previous years.\141\ For F-Block licenses, 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 years.\142\ These small business size standards, in the 
context of broadband PCS auctions, have been approved by the SBA.\143\ 
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 claimed small business status in the first two 
C-Block auctions. A total of 93 bidders that claimed small and very 
small business status won approximately 40 percent of the 1,479 
licenses in the first auction for the D, E, and F Blocks.\144\ On April 
15, 1999, the Commission completed the re-auction of 347 C-, D-, E-, 
and F-Block licenses in Auction No. 22.\145\ Of the 57 winning bidders 
in that auction, 48 claimed small business status and won 277 licenses.
---------------------------------------------------------------------------

    \141\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap; Amendment of the Commission's Cellular/
PCS Cross-Ownership Rule, WT Docket No. 96-59, GN Docket No. 90-314, 
Report and Order, 11 FCC Rcd 7824, 7850-52 paras. 57-60 (1996) 
(``PCS Report and Order''); see also 47 CFR 24.720(b).
    \142\ See PCS Report and Order, 11 FCC Rcd at 7852 para. 60.
    \143\ See Alvarez Letter 1998.
    \144\ See Broadband PCS, D, E and F Block Auction Closes, Public 
Notice, Doc. No. 89838 (rel. Jan. 14, 1997).
    \145\ See C, D, E, and F Block Broadband PCS Auction Closes, 
Public Notice, 14 FCC Rcd 6688 (WTB 1999). Before Auction No. 22, 
the Commission established a very small standard for the C Block to 
match the standard used for F Block. Amendment of the Commission's 
Rules Regarding Installment Payment Financing for Personal 
Communications Services (PCS) Licensees, WT Docket No. 97-82, Fourth 
Report and Order, 13 FCC Rcd 15743, 15768 para. 46 (1998).
---------------------------------------------------------------------------

    64. On January 26, 2001, the Commission completed the auction of 
422 C and F Block Broadband PCS licenses in Auction No. 35. Of the 35 
winning bidders in that auction, 29 claimed small business status.\146\ 
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 242 C-, D-, E-, and F-Block licenses in Auction No. 58. Of 
the 24 winning bidders in that auction, 16 claimed small business 
status and won 156 licenses.\147\ On May 21, 2007, the Commission 
completed an auction of 33 licenses in the A, C, and F Blocks in 
Auction No. 71.\148\ Of the 14 winning bidders in that auction, six 
claimed small business status and won 18 licenses.\149\ On August 20, 
2008, the Commission completed the auction of 20 C-, D-, E-, and F-
Block Broadband PCS licenses in Auction No. 78.\150\ Of the eight 
winning bidders for Broadband PCS licenses in that auction, six claimed 
small business status and won 14 licenses.\151\
---------------------------------------------------------------------------

    \146\ See C and F Block Broadband PCS Auction Closes; Winning 
Bidders Announced, Public Notice, 16 FCC Rcd 2339 (2001).
    \147\ See Broadband PCS Spectrum Auction Closes; Winning Bidders 
Announced for Auction No. 58, Public Notice, 20 FCC Rcd 3703 (2005).
    \148\ See Auction of Broadband PCS Spectrum Licenses Closes; 
Winning Bidders Announced for Auction No. 71, Public Notice, 22 FCC 
Rcd 9247 (2007).
    \149\ Id.
    \150\ See Auction of AWS-1 and Broadband PCS Licenses Closes; 
Winning Bidders Announced for Auction 78, Public Notice, 23 FCC Rcd 
12749 (WTB 2008).
    \151\ Id.
---------------------------------------------------------------------------

    65. Advanced Wireless Services. In 2006, the Commission conducted 
its first auction of Advanced Wireless Services licenses in the 1710-
1755 MHz and 2110-2155 MHz bands (``AWS-1''), designated as Auction 
66.\152\ For the AWS-1 bands, the Commission has defined a ``small 
business'' as an entity with average annual gross revenues for the 
preceding three years not exceeding $40 million, and a ``very small 
business'' as an entity with average annual gross revenues for the 
preceding three years not exceeding $15 million.\153\ In 2006, the 
Commission conducted its first auction of AWS-1 licenses.\154\ In that 
initial AWS-1 auction, 31 winning bidders identified themselves as very 
small businesses won 142 licenses.\155\ Twenty-six of the winning 
bidders identified themselves as small businesses and won 73 
licenses.\156\ In a subsequent 2008 auction, the Commission offered 35 
AWS-1 licenses.\157\ Four winning bidders identified themselves as very 
small businesses, and three of the winning bidders identifying 
themselves as a small businesses, won five AWS-1 licenses.\158\
---------------------------------------------------------------------------

    \152\ See Auction of Advanced Wireless Services Licenses 
Scheduled for June 29, 2006; Notice and Filing Requirements, Minimum 
Opening Bids, Upfront Payments and Other Procedures for Auction No. 
66, AU Docket No. 06-30, Public Notice, 21 FCC Rcd 4562 (2006) 
(``Auction 66 Procedures Public Notice'').
    \153\ See Service Rules for Advanced Wireless services in the 
1.7 GHz and 2.1 GHz Bands, Report and Order, 18 FCC Rcd 25,162, App. 
B (2003), modified by Service Rules for Advanced Wireless Services 
In the 1.7 GHz and 2.1 GHz Bands, Order on Reconsideration, 20 FCC 
Rcd 14,058, App. C (2005).
    \154\ See Auction of Advanced Wireless Services Licenses 
Scheduled for June 29, 2006; Notice and Filing Requirements, Minimum 
Opening Bids, Upfront Payments and Other Procedures for Auction No. 
66, AU Docket No. 06-30, Public Notice, 21 FCC Rcd 4562 (2006) 
(``Auction 66 Procedures Public Notice'').
    \155\ See Auction of Advanced Wireless Services Licenses Closes; 
Winning Bidders Announced for Auction No. 66, Public Notice, 21 FCC 
Rcd 10,521 (2006) (``Auction 66 Closing Public Notice'').
    \156\ See id.
    \157\ See AWS-1 and Broadband PCS Procedures Public Notice, 23 
FCC Rcd at 7499. Auction 78 also included an auction of broadband 
PCS licenses.
    \158\ See Auction of AWS-1 and Broadband PCS Licenses Closes, 
Winning Bidders Announced for Auction 78, Down Payments Due 
September 9, 2008, FCC Forms 601 and 602 Due September 9, 2008, 
Final Payments Due September 23, 2008, Ten-Day Petition to Deny 
Period, Public Notice, 23 FCC Rcd 12,749 (2008).
---------------------------------------------------------------------------

    66. Narrowband Personal Communications Services. In 1994, the 
Commission conducted two auctions of Narrowband PCS licenses. For these 
auctions, the Commission defined a ``small business'' as an entity with 
average annual gross revenues for the preceding three years not 
exceeding $40

[[Page 46324]]

million.\159\ Through these auctions, the Commission awarded a total of 
41 licenses, 11 of which were obtained by four small businesses.\160\ 
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.\161\ 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.\162\ 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.\163\ The SBA has approved these small business size 
standards.\164\ A third auction of Narrowband PCS licenses was 
conducted in 2001. In that auction, five bidders won 317 (Metropolitan 
Trading Areas and nationwide) licenses.\165\ Three of the winning 
bidders claimed status as a small or very small entity and won 311 
licenses.
---------------------------------------------------------------------------

    \159\ 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).
    \160\ 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).
    \161\ 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'').
    \162\ Narrowband PCS Second Report and Order, 15 FCC Rcd at 
10476, para. 40.
    \163\ Id.
    \164\ See Alvarez Letter 1998.
    \165\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16 
FCC Rcd 18663 (WTB 2001).
---------------------------------------------------------------------------

    67. 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.\166\ 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.\167\ 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.\168\ Additionally, the Lower 700 MHz Service had 
a third category of small business status for Metropolitan/Rural 
Service Area (``MSA/RSA'') licenses--``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.\169\ The SBA approved these 
small size standards.\170\ An auction of 740 licenses was conducted in 
2002 (one license in each of the 734 MSAs/RSAs and one license in each 
of the six Economic Area Groupings (EAGs)). Of the 740 licenses 
available for auction, 484 licenses were won by 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.\171\ 
A second auction commenced on May 28, 2003, closed on June 13, 2003, 
and included 256 licenses.\172\ 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.\173\ In 2005, 
the Commission completed an auction of 5 licenses in the lower 700 MHz 
band (Auction 60). All three winning bidders claimed small business 
status.
---------------------------------------------------------------------------

    \166\ 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'').
    \167\ See Channels 52-59 Report and Order, 17 FCC Rcd at 1087-
88, para. 172.
    \168\ See id.
    \169\ See id, 17 FCC Rcd at 1088, para. 173.
    \170\ See Letter from Aida Alvarez, Administrator, SBA, to 
Thomas Sugrue, Chief, WTB, FCC (Aug. 10, 1999) (``Alvarez Letter 
1999'').
    \171\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice, 
17 FCC Rcd 17272 (WTB 2002).
    \172\ See Lower 700 MHz Band Auction Closes, Public Notice, 18 
FCC Rcd 11873 (WTB 2003).
    \173\ See id.
---------------------------------------------------------------------------

    68. In 2007, the Commission reexamined its rules governing the 700 
MHz band in the 700 MHz Second Report and Order.\174\ An auction of A, 
B and E block licenses in the Lower 700 MHz band was held in 2008.\175\ 
Twenty winning bidders claimed 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). Thirty-three 
winning bidders claimed very small business status (those with 
attributable average annual gross revenues that do not exceed $15 
million for the preceding three years). In 2011, the Commission 
conducted Auction 92, which offered 16 lower 700 MHz band licenses that 
had been made available in Auction 73 but either remained unsold or 
were licenses on which a winning bidder defaulted. Two of the seven 
winning bidders in Auction 92 claimed very small business status, 
winning a total of four licenses.
---------------------------------------------------------------------------

    \174\ Service Rules for the 698-746, 747-762 and 777-792 MHz 
Band, 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 Telephone, 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 No. 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, 22 FCC Rcd 15289 (2007) (``700 
MHz Second Report and Order'').
    \175\ See Auction of 700 MHz Band Licenses Closes, Public 
Notice, 23 FCC Rcd 4572 (WTB 2008).
---------------------------------------------------------------------------

    69. Upper 700 MHz Band Licenses. In the 700 MHz Second Report and 
Order, the Commission revised its rules regarding Upper 700 MHz 
licenses.\176\ On January 24, 2008, the Commission commenced Auction 73 
in which several licenses in the Upper 700 MHz band were available for 
licensing: 12 Regional Economic Area Grouping licenses in the C Block, 
and one nationwide license in the D Block.\177\ The auction concluded 
on March 18, 2008, with 3 winning bidders claiming very small business 
status (those with attributable average annual gross revenues that do 
not exceed $15 million for the preceding three years) and winning five 
licenses.
---------------------------------------------------------------------------

    \176\ 700 MHz Second Report and Order, 22 FCC Rcd 15289.
    \177\ See Auction of 700 MHz Band Licenses Closes, Public 
Notice, 23 FCC Rcd 4572 (WTB 2008).
---------------------------------------------------------------------------

    70. 700 MHz Guard Band Licenses. In 2000, the Commission adopted 
the 700 MHz Guard Band Report and Order, in which it established rules 
for the A and B block licenses in the Upper 700 MHz band, including 
size standards for ``small businesses'' and ``very small businesses'' 
for purposes of determining their eligibility for special provisions 
such as bidding credits.\178\ 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.\179\ 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

[[Page 46325]]

$15 million for the preceding three years.\180\ SBA approval of these 
definitions is not required.\181\ An auction of these licenses was 
conducted in 2000.\182\ Of the 104 licenses auctioned, 96 licenses were 
won by 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 was held in 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.\183\
---------------------------------------------------------------------------

    \178\ 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) (``700 MHz Guard Band Report and Order'').
    \179\  See 700 MHz Guard Band Report and Order, 15 FCC Rcd at 
5343, para. 108.
    \180\  See id.
    \181\ 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).
    \182\  See ``700 MHz Guard Bands Auction Closes: Winning Bidders 
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
    \183\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders 
Announced,'' Public Notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------

    71. Specialized Mobile Radio. The Commission adopted small business 
size standards for the purpose of determining eligibility for bidding 
credits in auctions of Specialized Mobile Radio (SMR) geographic area 
licenses in the 800 MHz and 900 MHz bands. The Commission defined a 
``small business'' as an entity that, together with its affiliates and 
controlling principals, has average gross revenues not exceeding $15 
million for the preceding three years.\184\ The Commission defined a 
``very small business'' as an entity that, together with its affiliates 
and controlling principals, has average gross revenues not exceeding $3 
million for the preceding three years.\185\ The SBA has approved these 
small business size standards for both the 800 MHz and 900 MHz SMR 
Service.\186\ The first 900 MHz SMR auction was completed in 1996. 
Sixty bidders claiming that they qualified as small businesses under 
the $15 million size standard won 263 licenses in the 900 MHz SMR band. 
In 2004, the Commission held a second auction of 900 MHz SMR licenses 
and three winning bidders identifying themselves as very small 
businesses won 7 licenses.\187\ The auction of 800 MHz SMR licenses for 
the upper 200 channels was conducted in 1997. Ten bidders claiming that 
they qualified as small or very small businesses under the $15 million 
size standard won 38 licenses for the upper 200 channels.\188\ A second 
auction of 800 MHz SMR licenses was conducted in 2002 and included 23 
BEA licenses. One bidder claiming small business status won five 
licenses.\189\
---------------------------------------------------------------------------

    \184\ 47 CFR 90.810, 90.814(b), 90.912.
    \185\ 47 CFR 90.810, 90.814(b), 90.912.
    \186\  See Alvarez Letter 1999.
    \187\ See 900 MHz Specialized Mobile Radio Service Spectrum 
Auction Closes: Winning Bidders Announced,'' Public Notice, 19 FCC 
Rcd. 3921 (WTB 2004).
    \188\ 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).
    \189\ See ``Multi-Radio Service Auction Closes,'' Public Notice, 
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------

    72. The auction of the 1,053 800 MHz SMR licenses for the General 
Category channels was conducted in 2000. Eleven bidders who won 108 
licenses for the General Category channels in the 800 MHz SMR band 
qualified as small or very small businesses.\190\ In an auction 
completed in 2000, a total of 2,800 Economic Area licenses in the lower 
80 channels of the 800 MHz SMR service were awarded.\191\ Of the 22 
winning bidders, 19 claimed small or very small business status and won 
129 licenses. Thus, combining all four auctions, 41 winning bidders for 
geographic licenses in the 800 MHz SMR band claimed to be small 
businesses.
---------------------------------------------------------------------------

    \190\ 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).
    \191\ See ``800 MHz SMR Service Lower 80 Channels Auction 
Closes; Winning Bidders Announced,'' Public Notice, 16 FCC Rcd 1736 
(2000).
---------------------------------------------------------------------------

    73. 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 
not exceeding $15 million. One firm has over $15 million in revenues. 
In addition, we do not know how many of these firms have 1,500 or fewer 
employees.\192\ 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.
---------------------------------------------------------------------------

    \192\ See generally 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

    74. 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 
small business size standard for small entities specifically applicable 
to such incumbent 220 MHz Phase I licensees. To estimate the number of 
such licensees that are small businesses, the Commission applies the 
small business size standard under the SBA rules applicable. The SBA 
has deemed a wireless business to be small if it has 1,500 or fewer 
employees.\193\ For this service, the SBA uses the category of Wireless 
Telecommunications Carriers (except Satellite). Census data for 2007, 
which supersede data contained in the 2002 Census, show that there were 
1,383 firms that operated that year.\194\ Of those 1,383, 1,368 had 
fewer than 100 employees, and 15 firms had more than 100 employees. 
Thus under this category and the associated small business size 
standard, the majority of firms can be considered small.
---------------------------------------------------------------------------

    \193\ 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).
    \194\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 
NAICS code 517210 (rel. Oct. 20, 2009), http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

    75. 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 
licenses are assigned by auction, where mutually exclusive applications 
are accepted. 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.\195\ This small 
business standard indicates that a ``small business'' is an entity 
that, together with its affiliates and controlling principals, has 
average gross revenues not exceeding $15 million for the preceding 
three years.\196\ 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.\197\ The SBA has approved these small size standards.\198\ 
Auctions of Phase II licenses commenced on and closed in

[[Page 46326]]

1998.\199\ 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.\200\ 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.\201\ 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.\202\ In 2007, the Commission 
conducted a fourth auction of the 220 MHz licenses, designated as 
Auction 72.\203\ Auction 72, which offered 94 Phase II 220 MHz Service 
licenses, concluded in 2007.\204\ In this auction, five winning bidders 
won a total of 76 licenses. Two winning bidders identified themselves 
as very small businesses won 56 of the 76 licenses. One of the winning 
bidders that identified themselves as a small business won 5 of the 76 
licenses won.
---------------------------------------------------------------------------

    \195\ 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).
    \196\ Id. at 11068 para. 291.
    \197\ Id.
    \198\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
January 6, 1998 (Alvarez to Phythyon Letter 1998).
    \199\ See generally 220 MHz Service Auction Closes, Public 
Notice, 14 FCC Rcd 605 (WTB 1998).
    \200\ See FCC Announces It Is Prepared To Grant 654 Phase II 220 
MHz Licenses After Final Payment Is Made, Public Notice, 14 FCC Rcd 
1085 (WTB 1999).
    \201\ See Phase II 220 MHz Service Spectrum Auction Closes, 
Public Notice, 14 FCC Rcd 11218 (WTB 1999).
    \202\ See Multi-Radio Service Auction Closes, Public Notice, 17 
FCC Rcd 1446 (WTB 2002).
    \203\ See ``Auction of Phase II 220 MHz Service Spectrum 
Scheduled for June 20, 2007, Notice and Filing Requirements, Minimum 
Opening Bids, Upfront Payments and Other Procedures for Auction 72, 
Public Notice, 22 FCC Rcd 3404 (2007).
    \204\ See Auction of Phase II 220 MHz Service Spectrum Licenses 
Closes, Winning Bidders Announced for Auction 72, Down Payments due 
July 18, 2007, FCC Forms 601 and 602 due July 18, 2007, Final 
Payments due August 1, 2007, Ten-Day Petition to Deny Period, Public 
Notice, 22 FCC Rcd 11573 (2007).
---------------------------------------------------------------------------

    76. 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.\205\ 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.\206\
---------------------------------------------------------------------------

    \205\ See 13 CFR 121.201, NAICS code 517210.
    \206\ See generally 13 CFR 121.201.
---------------------------------------------------------------------------

    77. As of March 2010, there were 424,162 PLMR licensees operating 
921,909 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 any revised rules in this context could therefore 
potentially impact small entities covering a great variety of 
industries.
    78. Fixed Microwave Services. Microwave services include common 
carrier,\207\ private-operational fixed,\208\ and broadcast auxiliary 
radio services.\209\ They also include the Local Multipoint 
Distribution Service (``LMDS''),\210\ the Digital Electronic Message 
Service (``DEMS''),\211\ and the 24 GHz Service,\212\ where licensees 
can choose between common carrier and non-common carrier status.\213\ 
The Commission has not yet defined a small business with respect to 
microwave services. For purposes of this IRFA, the Commission will use 
the SBA's definition applicable to Wireless Telecommunications Carriers 
(except satellite)--i.e., an entity with no more than 1,500 persons is 
considered small.\214\ For the category of Wireless Telecommunications 
Carriers (except Satellite), Census data for 2007 shows that there were 
1,383 firms that operated that year.\215\ Of those 1,383, 1,368 had 
fewer than 100 employees, and 15 firms had more than 100 employees. 
Thus under this category and the associated small business size 
standard, the majority of firms can be considered small. The Commission 
notes that the number of firms does not necessarily track the number of 
licensees. The Commission estimates that virtually all of the Fixed 
Microwave licensees (excluding broadcast auxiliary licensees) would 
qualify as small entities under the SBA definition.
---------------------------------------------------------------------------

    \207\ See 47 CFR part 101, subparts C and I.
    \208\ See id. subparts C and H.
    \209\ Auxiliary Microwave Service is governed by part 74 of 
Title 47 of the Commission's rules. See 47 CFR part 74. 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 TV pickups, which 
relay signals from a remote location back to the studio.
    \210\ See 47 CFR part 101, subpart L.
    \211\ See id. subpart G.
    \212\ See id.
    \213\ See 47 CFR 101.533, 101.1017.
    \214\ 13 CFR 121.201, NAICS code 517210.
    \215\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 
NAICS code 517210 (rel. Oct. 20, 2009), http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

    79. 39 GHz Service. The Commission adopted small business size 
standards for 39 GHz licenses. A ``small business'' is defined as an 
entity that, together with its affiliates and controlling principals, 
has average gross revenues not exceeding $40 million in the preceding 
three years.\216\ A ``very small business'' is defined as an entity 
that, together with its affiliates and controlling principals, has 
average gross revenues of not more than $15 million for the preceding 
three years.\217\ The SBA has approved these small business size 
standards.\218\ In 2000, the Commission conducted an auction of 2,173 
39 GHz licenses. A total of 18 bidders who claimed small or very small 
business status won 849 licenses.
---------------------------------------------------------------------------

    \216\ 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).
    \217\ Id.
    \218\  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).
---------------------------------------------------------------------------

    80. 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.\219\ 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 years.\220\ An 
additional small business size standard for ``very small business'' was 
added as

[[Page 46327]]

an entity that, together with its affiliates, has average gross 
revenues of not more than $15 million for the preceding three 
years.\221\ The SBA has approved these small business size standards in 
the context of LMDS auctions.\222\ 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. In 1999, the Commission re-auctioned 161 
licenses; there were 32 small and very small businesses winning that 
won 119 licenses.
---------------------------------------------------------------------------

    \219\ 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, CC Docket No. 92-297, Second Report and Order, 
Order on Reconsideration, and Fifth Notice of Proposed Rule Making, 
12 FCC Rcd 12545, 12689-90, para. 348 (1997) (``LMDS Second Report 
and Order'').
    \220\ See LMDS Second Report and Order, 12 FCC Rcd at 12689-90, 
para. 348.
    \221\ See id.
    \222\ See Alvarez to Phythyon Letter 1998.
---------------------------------------------------------------------------

    81. 218-219 MHz Service. The first auction of 218-219 MHz Service 
(previously referred to as the Interactive and Video Data Service or 
IVDS) licenses resulted in 170 entities winning licenses for 594 
Metropolitan Statistical Areas (``MSAs'').\223\ Of the 594 licenses, 
557 were won by 167 entities qualifying as a small business. For that 
auction, the Commission defined a small business as an entity that, 
together with its affiliates, has no more than a $6 million net worth 
and, after federal income taxes (excluding any carry over losses), has 
no more than $2 million in annual profits each year for the previous 
two years.\224\ In the 218-219 MHz Report and Order and Memorandum 
Opinion and Order, the Commission revised its small business size 
standards for the 218-219 MHz Service and 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.\225\ The Commission defined a ``very small business'' 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.\226\ The SBA has approved these definitions.\227\
---------------------------------------------------------------------------

    \223\ See ``Interactive Video and Data Service (IVDS) 
Applications Accepted for Filing,'' Public Notice, 9 FCC Rcd 6227 
(1994).
    \224\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330 
(1994).
    \225\ 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).
    \226\ Id.
    \227\  See Alvarez to Phythyon Letter 1998.
---------------------------------------------------------------------------

    82. Location and Monitoring Service (``LMS''). Multilateration LMS 
systems use non-voice radio techniques to determine the location and 
status of mobile radio units. For auctions of LMS licenses, the 
Commission has defined a ``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.\228\ 
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.\229\ These 
definitions have been approved by the SBA.\230\ An auction of LMS 
licenses was conducted in 1999. Of the 528 licenses auctioned, 289 
licenses were sold to four small businesses.
---------------------------------------------------------------------------

    \228\ Amendment of Part 90 of the Commission's Rules to Adopt 
Regulations for Automatic Vehicle Monitoring Systems, Second Report 
and Order, 13 FCC Rcd 15182, 15192, para. 20 (1998) (``Automatic 
Vehicle Monitoring Systems Second Report and Order''); see also 47 
CFR 90.1103.
    \229\ Automatic Vehicle Monitoring Systems Second Report and 
Order, 13 FCC Rcd at 15192, para. 20; see also 47 CFR 90.1103.
    \230\ See Alvarez Letter 1998.
---------------------------------------------------------------------------

    83. Rural Radiotelephone Service. The Commission has not adopted a 
size standard for small businesses specific to the Rural Radiotelephone 
Service.\231\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio System (``BETRS'').\232\ For 
purposes of its analysis of the Rural Radiotelephone Service, the 
Commission uses the SBA small business size standard for the category 
Wireless Telecommunications Carriers (except satellite),'' which is 
1,500 or fewer employees.\233\ Census data for 2007 shows that there 
were 1,383 firms that operated that year.\234\ Of those 1,383, 1,368 
had fewer than 100 employees, and 15 firms had more than 100 employees. 
Thus under this category and the associated small business size 
standard, the majority of firms in the Rural Radiotelephone Service can 
be considered small.
---------------------------------------------------------------------------

    \231\ The service is defined in section 22.99 of the 
Commission's rules, 47 CFR 22.99.
    \232\ BETRS is defined in sections 22.757 and 22.759 of the 
Commission's rules, 47 CFR 22.757 and 22.759.
    \233\ 13 CFR 121.201, NAICS code 517210.
    \234\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 
NAICS code 517210 (rel. Oct. 20, 2009), http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

    84. Air-Ground Radiotelephone Service.\235\ 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.\236\ 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.\237\ 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.\238\ These definitions were approved by the SBA.\239\ In 2006, 
the Commission completed an auction of nationwide commercial Air-Ground 
Radiotelephone Service licenses in the 800 MHz band (Auction 65). The 
auction closed with two winning bidders winning two Air-Ground 
Radiotelephone Services licenses. Neither of the winning bidders 
claimed small business status.
---------------------------------------------------------------------------

    \235\ The service is defined in section 22.99 of the 
Commission's rules, 47 CFR 22.99.
    \236\ 13 CFR 121.201, NAICS codes 517210.
    \237\ Amendment of Part 22 of the Commission's Rules to Benefit 
the Consumers of Air-Ground Telecommunications Services, Biennial 
Regulatory Review--Amendment of Parts 1, 22, and 90 of the 
Commission's Rules, Amendment of Parts 1 and 22 of the Commission's 
Rules to Adopt Competitive Bidding Rules for Commercial and General 
Aviation Air-Ground Radiotelephone Service, WT Docket Nos. 03-103 
and 05-42, Order on Reconsideration and Report and Order, 20 FCC Rcd 
19663, paras. 28-42 (2005).
    \238\ Id.
    \239\ See Letter from Hector V. Barreto, Administrator, SBA, to 
Gary D. Michaels, Deputy Chief, Auctions and Spectrum Access 
Division, WTB, FCC (Sept. 19, 2005).
---------------------------------------------------------------------------

    85. Aviation and Marine Radio Services. Small businesses in the 
aviation and marine radio services use a very high frequency (``VHF'') 
marine or aircraft radio and, as appropriate, an emergency position-
indicating radio beacon (and/or radar) or an emergency locator 
transmitter. The Commission has not developed a small business size 
standard specifically applicable to these small businesses. For 
purposes of this analysis, the Commission uses the SBA small business 
size standard for the category Wireless Telecommunications Carriers 
(except satellite),'' which is 1,500 or fewer employees.\240\ Census 
data for 2007 shows that there were 1,383 firms that operated that 
year.\241\ Of those 1,383, 1,368 had fewer than 100 employees, and 15 
firms had more than 100 employees. Thus under this category and the 
associated small

[[Page 46328]]

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

    \240\ 13 CFR 121.201, NAICS code 517210.
    \241\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 
NAICS code 517210 (rel. Oct. 20, 2009), http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

    86. Offshore Radiotelephone Service. This service operates on 
several UHF television broadcast channels that are not used for 
television broadcasting in the coastal areas of states bordering the 
Gulf of Mexico.\242\ There are presently approximately 55 licensees in 
this service. The Commission is unable to estimate at this time the 
number of licensees that would qualify as small under the SBA's small 
business size standard for the category of Wireless Telecommunications 
Carriers (except Satellite). Under that standard.\243\ Under that SBA 
small business size standard, a business is small if it has 1,500 or 
fewer employees.\244\ Census data for 2007 shows that there were 1,383 
firms that operated that year.\245\ Of those 1,383, 1,368 had fewer 
than 100 employees, and 15 firms had more than 100 employees. Thus 
under this category and the associated small business size standard, 
the majority of firms can be considered small.
---------------------------------------------------------------------------

    \242\ This service is governed by subpart I of part 22 of the 
Commission's rules. See 47 CFR 22.1001-22.1037.
    \243\ 13 CFR 121.201, NAICS code 517210.
    \244\ Id.
    \245\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 
NAICS code 517210 (rel. Oct. 20, 2009), http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

    87. 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. The Commission defines a small business for MAS 
licenses as an entity that has average gross revenues of less than $15 
million in the preceding three years.\246\ A 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 
years.\247\ The SBA has approved these definitions.\248\ 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 March 5, 2010, there were over 11,500 MAS station 
authorizations. In 2001, an auction of 5,104 MAS licenses in 176 EAs 
was conducted.\249\ Seven winning bidders claimed status as small or 
very small businesses and won 611 licenses. In 2005, the Commission 
completed an auction (Auction 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.
---------------------------------------------------------------------------

    \246\ See Amendment of the Commission's Rules Regarding Multiple 
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008, para. 
123 (2000).
    \247\ Id.
    \248\ See Alvarez Letter 1999.
    \249\ See ``Multiple Address Systems Spectrum Auction Closes,'' 
Public Notice, 16 FCC Rcd 21011 (2001).
---------------------------------------------------------------------------

    88. With respect to 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.\250\ 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.
---------------------------------------------------------------------------

    \250\ See 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

    89. 1.4 GHz Band Licensees. The Commission conducted an auction of 
64 1.4 GHz band licenses in the paired 1392-1395 MHz and 1432-1435 MHz 
bands, and in the unpaired 1390-1392 MHz band in 2007.\251\ For these 
licenses, the Commission defined ``small business'' as an entity that, 
together with its affiliates and controlling interests, had average 
gross revenues not exceeding $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.\252\ 
Neither of the two winning bidders claimed small business status.\253\
---------------------------------------------------------------------------

    \251\ See ``Auction of 1.4 GHz Band Licenses Scheduled for 
February 7, 2007,'' Public Notice, 21 FCC Rcd 12393 (WTB 2006); 
``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'').
    \252\ Auction No. 69 Closing PN, Attachment C.
    \253\ See Auction No. 69 Closing PN.
---------------------------------------------------------------------------

    90. 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. For 
this service, the Commission uses the SBA small business size standard 
for the category ``Wireless Telecommunications Carriers (except 
satellite),'' which is 1,500 or fewer employees.\254\ To gauge small 
business prevalence for these cable services we must, however, use the 
most current census data. Census data for 2007 shows that there were 
1,383 firms that operated that year.\255\ Of those 1,383, 1,368 had 
fewer than 100 employees, and 15 firms had more than 100 employees. 
Thus under this category and the associated small business size 
standard, the majority of firms can be considered small. The Commission 
notes that the Census' use of the classifications ``firms'' does not 
track the number of ``licenses''. The Commission believes that there 
are only two licensees in the 24 GHz band that were relocated from the 
18 GHz band, Teligent \256\ and TRW, Inc. It is our understanding that 
Teligent and its related companies have less than 1,500 employees, 
though this may change in the future. TRW is not a small entity. Thus, 
only one incumbent licensee in the 24 GHz band is a small business 
entity.
---------------------------------------------------------------------------

    \254\ 13 CFR 121.201, NAICS code 517210.
    \255\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 
NAICS code 517210 (rel. Oct. 20, 2009), http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.>
    \256\ 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.
---------------------------------------------------------------------------

    91. Future 24 GHz Licensees. With respect to new applicants for 
licenses in the 24 GHz band, for the purpose of determining eligibility 
for bidding credits, the Commission established three small business 
definitions. An ``entrepreneur'' is defined as an entity that, together 
with controlling interests and affiliates, has average annual gross 
revenues for the three preceding years not exceeding $40 million.\257\ 
A ``small business'' is defined as an entity that, together with 
controlling interests and affiliates, has average annual gross revenues 
for the three preceding years not exceeding $15 million.\258\ A ``very 
small business'' in the 24 GHz band is defined as an entity that, 
together with

[[Page 46329]]

controlling interests and affiliates, has average gross revenues not 
exceeding $3 million for the preceding three years.\259\ The SBA has 
approved these small business size standards.\260\ In a 2004 auction of 
24 GHz licenses, three winning bidders won seven licenses.\261\ Two of 
the winning bidders were very small businesses that won five licenses.
---------------------------------------------------------------------------

    \257\ Amendments to Parts 1, 2, 87 and 101 of the Commission's 
Rules To License Fixed Services at 24 GHz, Report and Order, 15 FCC 
Rcd 16934, 16967 para. 77 (2000) (``24 GHz Report and Order''); see 
also 47 CFR 101.538(a)(3).
    \258\ 24 GHz Report and Order, 15 FCC Rcd at 16967 para. 77; see 
also 47 CFR 101.538(a)(2).
    \259\ 24 GHz Report and Order, 15 FCC Rcd at 16967 para. 77; see 
also 47 CFR 101.538(a)(1).
    \260\ See Letter to Margaret W. Wiener, Deputy Chief, Auctions 
and Industry Analysis Division, Wireless Telecommunications Bureau, 
FCC, from Gary M. Jackson, Assistant Administrator, SBA (July 28, 
2000).
    \261\ Auction of 24 GHz Service Spectrum Auction Closes, Winning 
Bidders Announced for Auction 56, Down Payments Due August 16, 2004, 
Final Payments Due August 30, 2004, Ten-Day Petition to Deny Period, 
Public Notice, 19 FCC Rcd 14738 (2004).
---------------------------------------------------------------------------

    92. Broadband Radio Service and Educational Broadband 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'').\262\ 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 years.\263\ 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.\264\ 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. In 2009, the Commission conducted Auction 86, the sale of 78 
licenses in the BRS areas.\265\ The Commission offered three levels of 
bidding credits: (i) A bidder with attributed average annual gross 
revenues that exceed $15 million and do not exceed $40 million for the 
preceding three years (small business) will receive a 15 percent 
discount on its winning bid; (ii) a bidder with attributed average 
annual gross revenues that exceed $3 million and do not exceed $15 
million for the preceding three years (very small business) will 
receive a 25 percent discount on its winning bid; and (iii) a bidder 
with attributed average annual gross revenues that do not exceed $3 
million for the preceding three years (entrepreneur) will receive a 35 
percent discount on its winning bid.\266\ Auction 86 concluded in 2009 
with the sale of 61 licenses.\267\ Of the ten winning bidders, two 
bidders that claimed small business status won 4 licenses; one bidder 
that claimed very small business status won three licenses; and two 
bidders that claimed entrepreneur status won six licenses.
---------------------------------------------------------------------------

    \262\ 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, PP Docket No. 93-253, 
Report and Order, 10 FCC Rcd 9589, 9593 para. 7 (1995).
    \263\ 47 CFR 21.961(b)(1).
    \264\ 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 of 1,500 or fewer employees.
    \265\ Auction of Broadband Radio Service (BRS) Licenses, 
Scheduled for October 27, 2009, Notice and Filing Requirements, 
Minimum Opening Bids, Upfront Payments, and Other Procedures for 
Auction 86, Public Notice, 24 FCC Rcd 8277 (2009).
    \266\ Id. at 8296.
    \267\ Auction of Broadband Radio Service Licenses Closes, 
Winning Bidders Announced for Auction 86, Down Payments Due November 
23, 2009, Final Payments Due December 8, 2009, Ten-Day Petition to 
Deny Period, Public Notice, 24 FCC Rcd 13572 (2009).
---------------------------------------------------------------------------

    93. 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.\268\ 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 
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.'' \269\ For these services, the 
Commission uses the SBA small business size standard for the category 
``Wireless Telecommunications Carriers (except satellite),'' which is 
1,500 or fewer employees.\270\ To gauge small business prevalence for 
these cable services we must, however, use the most current Census 
data. According to Census Bureau data for 2007, there were a total of 
955 firms in this previous category that operated for the entire 
year.\271\ Of this total, 939 firms employed 999 or fewer employees, 
and 16 firms employed 1,000 employees or more.\272\ Thus, the majority 
of these firms can be considered small.
---------------------------------------------------------------------------

    \268\ 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.
    \269\ U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired 
Telecommunications Carriers, (partial definition), www.census.gov/naics/2007/def/ND517110.HTM#N517110.
    \270\ 13 CFR 121.201, NAICS code 517210.
    \271\ U.S. Census Bureau, 2007 Economic Census, Subject Series: 
Information, Table 5, Employment Size of Firms for the United 
States: 2007, NAICS code 5171102 (issued November 2010).
    \272\ Id.
---------------------------------------------------------------------------

    94. 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.'' \273\ The SBA has created the 
following small business size standard for Television Broadcasting 
firms: Those having $14 million or less in annual receipts.\274\ The 
Commission has estimated the number of licensed commercial television 
stations to be 1,387.\275\ In addition, according to Commission staff 
review of the BIA Advisory Services, LLC's Media Access Pro Television 
Database on March 28, 2012, about 950 of an estimated 1,300 commercial 
television stations (or approximately 73 percent) had revenues

[[Page 46330]]

of $14 million or less.\276\ We therefore estimate that the majority of 
commercial television broadcasters are small entities.
---------------------------------------------------------------------------

    \273\ U.S. Census Bureau, 2007 NAICS Definitions, ``515120 
Television Broadcasting'' (partial definition); http://www.census.gov/naics/2007/def/ND515120.HTM#N515120.
    \274\ 13 CFR 121.201, NAICS code 515120 (updated for inflation 
in 2010).
    \275\ See FCC News Release, ``Broadcast Station Totals as of 
December 31, 2011,'' dated January 6, 2012; http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-311837A1.pdf.
    \276\ We recognize that BIA's estimate differs slightly from the 
FCC total given supra.
---------------------------------------------------------------------------

    95. We note, however, that in assessing whether a business concern 
qualifies as small under the above definition, business (control) 
affiliations \277\ 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.
---------------------------------------------------------------------------

    \277\ ``[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).
---------------------------------------------------------------------------

    96. In addition, the Commission has estimated the number of 
licensed noncommercial educational (NCE) television stations to be 
396.\278\ These stations are non-profit, and therefore considered to be 
small entities.\279\
---------------------------------------------------------------------------

    \278\ See FCC News Release, ``Broadcast Station Totals as of 
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
    \279\ See generally 5 U.S.C. 601(4), (6).
---------------------------------------------------------------------------

    97. In addition, there are also 2,528 low power television 
stations, including Class A stations (LPTV).\280\ Given the nature of 
these services, we will presume that all LPTV licensees qualify as 
small entities under the above SBA small business size standard.
---------------------------------------------------------------------------

    \280\ See FCC News Release, ``Broadcast Station Totals as of 
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
---------------------------------------------------------------------------

    98. 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.'' \281\ The SBA 
has established a small business size standard for this category, which 
is: Such firms having $7 million or less in annual receipts.\282\ 
According to Commission staff review of BIA Advisory Services, LLC's 
Media Access Pro Radio Database on March 28, 2012, about 10,759 (97%) 
of 11,102 commercial radio stations had revenues of $7 million or less. 
Therefore, the majority of such entities are small entities.
---------------------------------------------------------------------------

    \281\ U.S. Census Bureau, 2007 NAICS Definitions, ``515112 Radio 
Stations''; http://www.census.gov/naics/2007/def/ND515112.HTM#N515112.
    \282\ 13 CFR 121.201, NAICS code 515112 (updated for inflation 
in 2010).
---------------------------------------------------------------------------

    99. We note, however, that in assessing whether a business concern 
qualifies as small under the above size standard, business affiliations 
must be included.\283\ In addition, to be determined to be a ``small 
business,'' the entity may not be dominant in its field of 
operation.\284\ 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.
---------------------------------------------------------------------------

    \283\ ``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).
    \284\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------

    100. 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.\285\
---------------------------------------------------------------------------

    \285\ 13 CFR 121.201, NAICS codes 515112 and 515120.
---------------------------------------------------------------------------

    101. The Commission estimates that there are approximately 6,099 FM 
translators and boosters.\286\ 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.\287\
---------------------------------------------------------------------------

    \286\ See FCC News Release, ``Broadcast Station Totals as of 
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
    \287\ See 15 U.S.C. 632.
---------------------------------------------------------------------------

    102. 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.'' \288\ The SBA has developed a small business size 
standard for this category, which is: All such firms having 1,500 or 
fewer employees. Census data for 2007 shows that there were 1,383 firms 
that operated that year.\289\ Of those 1,383, 1,368 had fewer than 100 
employees, and 15 firms had more than 100 employees. Thus under this 
category and the associated small business size standard, the majority 
of such firms can be considered small.
---------------------------------------------------------------------------

    \288\ U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired 
Telecommunications Carriers, (partial definition), http://www.census.gov/naics/2007/def/ND517110.HTM#N517110 (last visited 
Oct. 21, 2009).
    \289\ U.S. Census Bureau, 2007 Economic Census, Sector 51, 2007 
NAICS code 517210 (rel. Oct. 20, 2009), http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=700&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

    103. 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.\290\ Industry 
data indicate that, of 1,076 cable operators nationwide, all but eleven 
are small under this size standard.\291\ In addition, under the

[[Page 46331]]

Commission's rules, a ``small system'' is a cable system serving 15,000 
or fewer subscribers.\292\ Industry data indicate that, of 6,635 
systems nationwide, 5,802 systems have under 10,000 subscribers, and an 
additional 302 systems have 10,000-19,999 subscribers.\293\ Thus, under 
this second size standard, most cable systems are small.
---------------------------------------------------------------------------

    \290\ 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).
    \291\ 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.
    \292\ 47 CFR 76.901(c).
    \293\ Warren Communications News, Television & Cable Factbook 
2008, ``U.S. Cable Systems by Subscriber Size,'' page F-2 (data 
current as of Oct. 2007). The data do not include 851 systems for 
which classifying data were not available.
---------------------------------------------------------------------------

    104. 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.'' \294\ 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.\295\ Industry data indicate that, of 1,076 cable operators 
nationwide, all but ten are small under this size standard.\296\ 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,\297\ and therefore we are unable 
to estimate more accurately the number of cable system operators that 
would qualify as small under this size standard.
---------------------------------------------------------------------------

    \294\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
    \295\ 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).
    \296\ 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.
    \297\ 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).
---------------------------------------------------------------------------

    105. Open Video Systems. Open Video Service (OVS) systems provide 
subscription services.\298\ 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.\299\ The OVS framework provides opportunities for 
the distribution of video programming other than through cable systems. 
Because OVS operators provide subscription services,\300\ OVS falls 
within the SBA small business size standard covering cable services, 
which is ``Wired Telecommunications Carriers.'' \301\ 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 the OVS service, the Commission relies on data currently 
available from the U.S. Census for the year 2007. According to that 
source, there were 3,188 firms that in 2007 were Wired 
Telecommunications Carriers. Of these, 3,144 operated with less than 
1,000 employees, and 44 operated with more than 1,000 employees. 
However, as to the latter 44 there is no data available that shows how 
many operated with more than 1,500 employees. Based on this data, the 
majority of these firms can be considered small.\302\ In addition, we 
note that the Commission has certified some OVS operators, with some 
now providing service.\303\ Broadband service providers (``BSPs'') are 
currently the only significant holders of OVS certifications or local 
OVS franchises.\304\ 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, at least some of 
the OVS operators may qualify as small entities. The Commission further 
notes that it has certified approximately 45 OVS operators to serve 75 
areas, and some of these are currently providing service.\305\ 
Affiliates of Residential Communications Network, Inc. (RCN) received 
approval to operate OVS systems in New York City, Boston, Washington, 
DC, and other areas. RCN has sufficient revenues to assure that they do 
not qualify as a small business entity. Little financial information is 
available for the other entities that are authorized to provide OVS and 
are not yet operational. Given that some entities authorized to provide 
OVS service have not yet begun to generate revenues, the Commission 
concludes that up to 44 OVS operators (those remaining) might qualify 
as small businesses that may be affected by the rules and policies 
adopted herein.
---------------------------------------------------------------------------

    \298\ See 47 U.S.C. 573.
    \299\ 47 U.S.C. 571(a)(3)-(4). See 13th Annual Report, 24 FCC 
Rcd at 606, para. 135.
    \300\ See 47 U.S.C. 573.
    \301\ U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired 
Telecommunications Carriers, http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
    \302\ See http://factfinder.census.gov/servlet/IBQTable?_bm=y&-fds_name=EC0700A1&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
    \303\ A list of OVS certifications may be found at http://www.fcc.gov/mb/ovs/csovscer.html.
    \304\ See 13th Annual Report, 24 FCC Rcd at 606-07 para. 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.
    \305\ See http://www.fcc.gov/mb/ovs/csovscer.html (current as of 
February 2007).
---------------------------------------------------------------------------

    106. Cable Television Relay Service. The industry in which Cable 
Television Relay Services operate 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. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services; wired (cable) audio and video programming 
distribution; and wired broadband Internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry.\306\ The category designated by the SBA for this 
industry is ``Wired Telecommunications Carriers.'' \307\ The SBA has 
developed a small business size standard for this category, which is: 
All such firms having 1,500 or fewer employees. According to Census 
Bureau data for 2007, Census data for 2007 shows 3,188 firms in this 
category.\308\ Of these 3,188 firms, only 44 had 1,000 or more 
employees. While we could not find precise Census data on the number of 
firms with in the group with 1,500 or fewer employees, it is clear that 
at least 3,144 firms with fewer than 1,000 employees would be in that 
group. On this basis, the Commission estimates that a substantial 
majority of the providers of interconnected VoIP, non-

[[Page 46332]]

interconnected VoIP, or both in this category, are small.\309\
---------------------------------------------------------------------------

    \306\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' (partial definition); http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
    \307\ 13 CFR 121.201, NAICS code 517110.
    \308\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
    \309\ Id. As noted in para. 18 above with regard to the 
distinction between manufacturers of equipment used to provide 
interconnected VoIP and manufactures of equipment to provide non-
interconnected VoIP, our estimates of the number of the number of 
providers of non-interconnected VoIP (and the number of small 
entities within that group) are likely overstated because we could 
not draw in the data a distinction between such providers and those 
that provide interconnected VoIP. However, in the absence of more 
accurate data, we present these figures to provide as thorough an 
analysis of the impact on small entities as we can at this time.
---------------------------------------------------------------------------

    107. 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 defines 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.\310\ These definitions were approved by the SBA.\311\ 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.\312\ 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.\313\
---------------------------------------------------------------------------

    \310\ Amendment of Parts 2 and 25 of the Commission's Rules to 
Permit Operation of NGSO FSS Systems Co-Frequency with GSO and 
Terrestrial Systems in the Ku-Band Frequency Range; Amendment of the 
Commission's Rules to Authorize Subsidiary Terrestrial Use of the 
12.2-12.7 GHz Band by Direct Broadcast Satellite Licenses and their 
Affiliates; and Applications of Broadwave USA, PDC Broadband 
Corporation, and Satellite Receivers, Ltd. to provide A Fixed 
Service in the 12.2-12.7 GHz Band, ET Docket No. 98-206, Memorandum 
Opinion and Order and Second Report and Order, 17 FCC Rcd 9614, 
9711, para. 252 (2002).
    \311\ 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).
    \312\ See ``Multichannel Video Distribution and Data Service 
Auction Closes,'' Public Notice, 19 FCC Rcd 1834 (2004).
    \313\ 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).
---------------------------------------------------------------------------

    108. Amateur Radio Service. These licensees are held by individuals 
in a noncommercial capacity; these licensees are not small entities.
    109. 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.\314\ 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'').\315\ 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.\316\ 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 our action.
---------------------------------------------------------------------------

    \314\ 47 CFR part 90.
    \315\ 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.
    \316\ 13 CFR 121.201, NAICS Code 517210.
---------------------------------------------------------------------------

    110. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, highway 
maintenance, and emergency medical services.\317\ There are a total of 
approximately 127,540 licensees in these services. Governmental 
entities \318\ 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.\319\
---------------------------------------------------------------------------

    \317\ 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 for highway maintenance service to provide 
emergency and routine communications to aid other public safety 
services to keep main roads safe for vehicular traffic. The 
approximately 1,000 licensees in the Emergency Medical Radio Service 
(``EMRS'') use the 39 channels allocated to this service for 
emergency medical service communications related to the delivery of 
emergency medical treatment. 47 CFR 90.15-90.27. The approximately 
20,000 licensees in the special emergency service include medical 
services, rescue organizations, veterinarians, handicapped persons, 
disaster relief organizations, school buses, beach patrols, 
establishments in isolated areas, communications standby facilities, 
and emergency repair of public communications facilities. 47 CFR 
90.33-90.55.
    \318\ 47 CFR 1.1162.
    \319\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

    111. Internet Service Providers. Internet Service Providers, Web 
Portals and Other Information Services. In 2007, the SBA recognized two 
new small business economic census categories. They are (1) Internet 
Publishing and Broadcasting and Web Search Portals,\320\ and (2) All 
Other Information Services.\321\
---------------------------------------------------------------------------

    \320\ 13 CFR 121.201, NAICS code 519130 (establishing a $500,000 
revenue ceiling).
    \321\ 13 CFR 121.201, NAICS code 519190 (establishing a $6.5 
million revenue ceiling).
---------------------------------------------------------------------------

    112. Internet Service Providers. The 2007 Economic Census places 
these firms, whose services might include voice over Internet protocol 
(VoIP), in either of two categories, depending on whether the service 
is provided over the provider's own telecommunications facilities 
(e.g., cable and DSL ISPs), or over client-supplied telecommunications 
connections (e.g., dial-up ISPs). The former are within the category of 
Wired Telecommunications Carriers,\322\ which has an SBA small business 
size standard of 1,500 or fewer employees.\323\ These are also labeled 
``broadband.'' The latter are within the

[[Page 46333]]

category of All Other Telecommunications,\324\ which has a size 
standard of annual receipts of $25 million or less.\325\ These are 
labeled non-broadband.
---------------------------------------------------------------------------

    \322\ U.S. Census Bureau, 2007 NAICS Definitions, 517110 Wired 
Telecommunications Carriers, http://www.census.gov/naics/2007/def/ND517110.HTM#N517110.
    \323\ 13 CFR 121.201, NAICS code 517110.
    \324\ U.S. Census Bureau, 2007 NAICS Definitions, ``517919 All 
Other Telecommunications,'' http://www.census.gov/naics/2007/def/ND517919.HTM#N517919.
    \325\ 13 CFR 121.201, NAICS code 517919 (updated for inflation 
in 2008).
---------------------------------------------------------------------------

    113. The most current Economic Census data for all such firms are 
2007 data, which are detailed specifically for ISPs within the 
categories above. For the first category, the data show that 396 firms 
operated for the entire year, of which 159 had nine or fewer 
employees.\326\ For the second category, the data show that 1,682 firms 
operated for the entire year.\327\ Of those, 1,675 had annual receipts 
below $25 million per year, and an additional two had receipts of 
between $25 million and $49,999,999. Consequently, we estimate that the 
majority of ISP firms are small entities.
---------------------------------------------------------------------------

    \326\ U.S. Census Bureau, 2007 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size,'' NAICS code 5171103 
(rel. Nov. 19, 2010) (employment size). The data show only two 
categories within the whole: The categories for 1-4 employees and 
for 5-9 employees.
    \327\ U.S. Census Bureau, 2007 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size,'' NAICS code 5179191 
(rel. Nov. 19, 2010) (receipts size).
---------------------------------------------------------------------------

    114. Internet Publishing and Broadcasting and Web Search Portals. 
This industry comprises establishments primarily engaged in (1) 
publishing and/or broadcasting content on the Internet exclusively or 
(2) operating Web sites that use a search engine to generate and 
maintain extensive databases of Internet addresses and content in an 
easily searchable format (and known as Web search portals). The 
publishing and broadcasting establishments in this industry do not 
provide traditional (non-Internet) versions of the content that they 
publish or broadcast. They provide textual, audio, and/or video content 
of general or specific interest on the Internet exclusively. 
Establishments known as Web search portals often provide additional 
Internet services, such as email, connections to other Web sites, 
auctions, news, and other limited content, and serve as a home base for 
Internet users.\328\ The SBA deems businesses in this industry with 500 
or fewer employees small.\329\ According to Census Bureau data for 
2007, there were 2,705 firms that provided one or more of these 
services for that entire year. Of these, 2,682 operated with less than 
500 employees and 13 operated with to 999 employees.\330\ Consequently, 
we estimate the majority of these firms are small entities that may be 
affected by our proposed actions.
---------------------------------------------------------------------------

    \328\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=519130&search=2007%20NAICS%20Search
    \329\ http://www.sba.gov/sites/default/files/Size_Standards_Table.pdf.
    \330\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=1000&-ds_name=EC0751SSSZ5&-_lang=en.
---------------------------------------------------------------------------

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

    115. 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, and pay a regulatory fee based on the number of 
licenses or call signs.\331\ In some instances, licensees or regulatees 
may decide to submit an FCC Form 159 Remittance Advice. Interstate 
telephone service providers must compute their annual regulatory fee 
based on their interstate and international end-user revenue using 
information they already supply to the Commission in compliance with 
the Form 499-A, Telecommunications Reporting Worksheet. Compliance with 
the fee schedule will require some regulatees to tabulate the number of 
units (e.g., cellular telephones, pagers, cable TV subscribers) they 
have in service. Regulatees 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 
submit a regulatory fee payment, and it can be completed by the 
employees responsible for an entity's business records.
---------------------------------------------------------------------------

    \331\ 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.
---------------------------------------------------------------------------

    116. As discussed previously in this Report and Order, the 
Commission concluded in its FY 2009 regulatory fee cycle that 
regulatees 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 during the regulatory 
fee cycle. By requiring regulatees 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 the Commission 
will be able to create an electronic record of regulatee payment 
attributes that are more easily traceable than payments that were 
previously mailed in with a hardcopy Form 159.
    117. 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.\332\ If payment is not received, new or 
pending applications may be dismissed, and existing authorizations may 
be subject to rescission.\333\ 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.\334\ Nonpayment of 
regulatory fees is a debt owed to 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.\335\
---------------------------------------------------------------------------

    \332\ 47 CFR 1.1164.
    \333\ 47 CFR 1.1164(c).
    \334\ Public Law 104-134, 110 Stat. 1321 (1996).
    \335\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

    118. 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.\336\ However, 
timely submission of the required regulatory fee must accompany 
requests for

[[Page 46334]]

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 (e.g. 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 regulatee), the Commission will defer payment in response to a 
request filed with the appropriate supporting documentation.
---------------------------------------------------------------------------

    \336\ 47 CFR 1.1166.
---------------------------------------------------------------------------

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

    119. 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, among others: (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.\337\
---------------------------------------------------------------------------

    \337\ 5 U.S.C. 603.
---------------------------------------------------------------------------

    120. In the FY 2012 Regulatory Fee Notice of Proposed Rulemaking, 
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. For example, the Commission has considered creating bills 
for all fee categories so that payments that are received will 
liquidate more quickly, thereby reducing errors in processing and 
improving efficiency. The Commission has also considered ways to notify 
small entities electronically regarding regulatory fee updates. We 
received no comments specifically in response to the IRFA.
    121. Several categories of licensees and regulatees are exempt from 
payment of regulatory fees, such as government entities, tribal 
nations, tax exempt (non-profit) entities, amateur radio operator 
licensees, and entities whose total sum owed in regulatory fees is less 
than $10. In addition, the Commission's waiver procedures also provide 
regulatees, including small entity regulatees, relief in exceptional 
circumstances such as financial hardship. We note that small entities 
in particular should be assisted by the Commission's electronic filing 
and payment system (``Fee Filer''), which pre-loads payment data to 
minimize the time spent by entities searching for payment information. 
The Commission's Fee Filer system also permits entities to make fee 
payment in a variety of ways, even on the due date of regulatory fees.

VI. Report to Congress

    122. 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.\338\ 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.\339\
---------------------------------------------------------------------------

    \338\ 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.
    \339\  See 5 U.S.C. 604(b).
---------------------------------------------------------------------------

VII. Ordering Clauses

    123. 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.
    124. 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 Table F, to the Chief Counsel for Advocacy of 
the U.S. Small Business Administration.

List of Subjects in 47 CFR Part 1

    Practice and procedures.

Federal Communications Commission.
Sheryl D. Todd,
Deputy Secretary.

Rule Changes

    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), 309.


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


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

------------------------------------------------------------------------
  Exclusive use services (per
            license)             Fee amount \1\          Address
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz
 and 220 MHz Local, Base
 Station & SMRS) (47 CFR part
 90):
    (a) New, Renew/Mod (FCC 601          $35.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                    35.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
    (c) Renewal Only (FCC 601 &           35.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                      35.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
220 MHz Nationwide:
    (a) New, Renew/Mod (FCC 601           35.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                    35.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
    (c) Renewal Only (FCC 601 &           35.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                      35.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
2. Microwave (47 CFR Pt. 101)
 (Private):
    (a) New, Renew/Mod (FCC 601           20.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                    20.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
    (c) Renewal Only (FCC 601 &           20.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                      20.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
3. 218-219 MHz Service:
    (a) New, Renew/Mod (FCC 601           70.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                    70.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.

[[Page 46335]]

 
    (c) Renewal Only (FCC 601 &           70.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                      70.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
4. Shared Use Services:
 Land Mobile (Frequencies Below
 470 MHz--except 220 MHz):
    (a) New, Renew/Mod (FCC 601           15.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                    15.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
    (c) Renewal Only (FCC 601 &           15.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
     (d) Renewal Only                     15.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
 General Mobile Radio Service:
    (a) New, Renew/Mod (FCC 605            5.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                     5.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
    (c) Renewal Only (FCC 605 &            5.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                       5.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
 Rural Radio (Part 22):
    (a) New, Additional                   15.00  FCC, P.O. Box 979097,
     Facility, Major Renew/Mod                    St. Louis, MO 63197-
     (Electronic Filing) (FCC                     9000.
     601 & 159).
    (b) Renewal, Minor Renew/             15.00  FCC, P.O. Box 979097,
     Mod (Electronic Filing)                      St. Louis, MO 63197-
     (FCC 601 & 159).                             9000.
 Marine Coast:
    (a) New Renewal/Mod (FCC              50.00  FCC, P.O. Box 979097,
     601 & 159).                                  St. Louis, MO 63197-
                                                  9000.
    (b) New, Renewal/Mod                  50.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
    (c) Renewal Only (FCC 601 &           50.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                      50.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
 Aviation Ground:
    (a) New, Renewal/Mod (FCC             15.00  FCC, P.O. Box 979097,
     601 & 159).                                  St. Louis, MO 63197-
                                                  9000.
    (b) New, Renewal/Mod                  15.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
    (c) Renewal Only (FCC 601 &           15.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (9) Renewal Only                      15.00  FCC, P.O. Box 979097,
     (Electronic Only) (FCC 601                   St. Louis, MO 63197-
     & 159).                                      9000.
 Marine Ship:
    (a) New, Renewal/Mod (FCC             10.00  FCC, P.O. Box 979097,
     605 & 159).                                  St. Louis, MO 63197-
                                                  9000.
    (b) New, Renewal/Mod                  10.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
    (c) Renewal Only (FCC 605 &           10.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                      10.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
 Aviation Aircraft:
    (a) New, Renew/Mod (FCC 605           10.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                    10.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
    (c) Renewal Only (FCC 605 &           10.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                      10.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
5. Amateur Vanity Call Signs:
    (a) Initial or Renew (FCC              1.50  FCC, P.O. Box 979097,
     605 & 159).                                  St. Louis, MO 63197-
                                                  9000.
    (b) Initial or Renew                   1.50  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
6. CMRS Cellular/Mobile                 \2\ .17  FCC, P.O. Box 979097,
 Services (per unit) (FCC 159).                   St. Louis, MO 63197-
                                                  9000.
7. CMRS Messaging Services (per         \3\ .08  FCC, P.O. Box 979097,
 unit) (FCC 159).                                 St. Louis, MO 63197-
                                                  9000.
8. Broadband Radio Service               475.00  FCC, P.O. Box 979097,
 (formerly MMDS and MDS).                         St. Louis, MO 63197-
                                                  9000.
9. Local Multipoint                      475.00  FCC, P.O. Box 979097,
 Distribution Service.                            St. 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 section 1.1102 of this
  chapter.
\2\ These are standard fees that are to be paid in accordance with
  section 1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with
  section 1.1157(b) of this chapter.



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


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

------------------------------------------------------------------------
                                   Fee amount            Address
------------------------------------------------------------------------
Radio [AM and FM] (47 CFR part
 73):
1. AM Class A:
    < = 25,000 population......            $725  FCC, Radio, P.O. Box
    25,001-75,000 population...           1,475   979084, St. Louis, MO
    75,001-150,000 population..           2,200   63197-9000.
    150,001-500,000 population.           3,300
    500,001-1,200,000                     4,775
     population.                          7,350
    1,200,001-3,000,000                   8,825
     population.
    >3,000,000 population......
2. AM Class B:

[[Page 46336]]

 
    < = 25,000 population......             600  FCC, Radio, P.O. Box
    25,001-75,000 population...           1,225   979084, St. Louis, MO
    75,001-150,000 population..           1,525   63197-9000.
    150,001-500,000 population.           2,600
    500,001-1,200,000                     3,975
     population.                          6,100
    1,200,001-3,000,000                   7,325
     population.
    >3,000,000 population......
3. AM Class C:
    < = 25,000 population......             550  FCC, Radio, P.O. Box
    25,001-75,000 population...             850   979084, St. Louis, MO
    75,001-150,000 population..           1,125   63197-9000.
    150,001-500,000 population.           1,675
    500,001-1,200,000                     2,800
     population.                          4,200
    1,200,001-3,000,000                   5,325
     population.
    >3,000,000 population......
4. AM Class D:
    < = 25,000 population......             625  FCC, Radio, P.O. Box
    25,001-75,000 population...             950   979084, St. Louis, MO
    75,001-150,000 population..           1,600   63197-9000.
    150,001-500,000 population.           1,900
    500,001-1,200,000                     3,175
     population.                          5,075
    1,200,001-3,000,000                   6,350
     population.
    >3,000,000 population......
5. AM Construction Permit......             550   FCC, Radio, P.O. Box
                                                  979084, St. Louis, MO
                                                  63197-9000.
6. FM Classes A, B1 and C3:
    < = 25,000 population......             700  FCC, Radio, P.O. Box
    25,001-75,000 population...           1,425   979084, St. Louis, MO
    75,001-150,000 population..           1,950   63197-9000.
    150,001-500,000 population.           3,025
    500,001-1,200,000                     4,800
     population.                          7,800
    1,200,001-3,000,000                   9,950
     population.
    >3,000,000 population......
7. FM Classes B, C, C0, C1 and
 C2:
    < = 25,000 population......             875  FCC, Radio, P.O. Box
    25,001-75,000 population...           1,550   979084, St. Louis, MO
    75,001-150,000 population..           2,875   63197-9000.
    150,001-500,000 population.           3,750
    500,001-1,200,000                     5,525
     population.                          8,850
    1,200,001-3,000,000                  11,500
     population.
    >3,000,000 population......
8. FM Construction Permits.....             700  FCC, Radio, P.O. Box
                                                  979084, St. Louis, MO
                                                  63197-9000.
TV (47 CFR, part 73) VHF
 Commercial:
    1. Markets 1 thru 10.......          80,075  FCC, Radio, P.O. Box
                                                  979084, St. Louis, MO
                                                  63197-9000.
    2. Markets 11 thru 25......          73,475
    3. Markets 26 thru 50......          39,800
    4. Markets 51 thru 100.....          20,925
    5. Remaining Markets.......           5,825
    6. Construction Permits....           5,825
UHF Commercial:
    1. Markets 1 thru 10.......          35,350  FCC, UHF Commercial,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
    2. Markets 11 thru 25......          32,625
    3. Markets 26 thru 50......          21,925
    4. Markets 51 thru 100.....          12,750
    5. Remaining Markets.......           3,425
    6. Construction Permits....           3,425
Satellite UHF/VHF Commercial:
    1. All Markets.............           1,425  FCC Satellite TV, P.O.
                                                  Box 979084, St. Louis,
                                                  MO 63197-9000.
    2. Construction Permits....             895
Low Power TV, Class A TV, TV/FM             385  FCC, Low Power, P.O.
 Translator, & TV/FM Booster                      Box 979084, St. Louis,
 (47 CFR part 74).                                MO 63197-9000.
Broadcast Auxiliary............              10  FCC, Auxiliary, P.O.
                                                  Box 979084, St. Louis,
                                                  MO 63197-9000.
------------------------------------------------------------------------



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


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

------------------------------------------------------------------------
                                   Fee amount            Address
------------------------------------------------------------------------
Radio Facilities:

[[Page 46337]]

 
    1. Microwave (Domestic            $20.00     FCC, P.O. Box 97097,
     Public Fixed) (Electronic                    St. Louis, MO 63197-
     Filing) (FCC Form 601 &                      9000.
     159).
Carriers:
    1. Interstate Telephone              .00375  FCC, Carriers, P.O. Box
     Service Providers (per                       979084, St. Louis, MO
     interstate and                               63197-9000.
     international 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               $475     FCC, Cable, P.O. Box
 Service.                                         979084, St. Louis, MO
                                                  63197-9000.
2. Cable TV System (per                     .95
 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 category             Fee amount            Address
------------------------------------------------------------------------
Space Stations (Geostationary          $132,875  FCC, International,
 Orbit).                                          P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
Space Stations (Non-                    143,150  FCC, International,
 Geostationary Orbit).                            P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
Earth Stations: Transmit/                   275  FCC, International,
 Receive & Transmit only (per                     P.O. Box 979084, St.
 authorization or registration).                  Louis, 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, 2011)
------------------------------------------------------------------------
Terrestrial Common Carrier      $0.26 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 as of Dec. 31,      Fee amount             Address
            2011)
------------------------------------------------------------------------
<2.5 Gbps....................         $13,300  FCC, International, P.O.
                                                Box 979084, St. Louis,
                                                MO 63197-9000,
2.5 Gbps or greater, but less          26,600  FCC, International, P.O.
 than 5 Gbps.                                   Box 979084, St. Louis,
                                                MO 63197-9000.
5 Gbps or greater, but less            53,200  FCC, International, P.O.
 than 10 Gbps.                                  Box 979084, St. Louis,
                                                MO 63197-9000.
10 Gbps or greater, but less          106,375  FCC, International, P.O.
 than 20 Gbps.                                  Box 979084, St. Louis,
                                                MO 63197-9000.
20 Gbps or greater...........         212,750  FCC, International, P.O.
                                                Box 979084, St. Louis,
                                                MO 63197-9000.
------------------------------------------------------------------------


[[Page 46338]]

[FR Doc. 2012-18661 Filed 8-2-12; 8:45 am]
BILLING CODE 6712-01-P