[Federal Register Volume 78, Number 164 (Friday, August 23, 2013)]
[Rules and Regulations]
[Pages 52433-52457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20516]


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

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 13-140; MD Docket No. 12-201; MD Docket No. 08-65; FCC 
13-110]


Assessment and Collection of Regulatory Fees for Fiscal Year 2013

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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

SUMMARY: In this document 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 2013. 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 August 23, 2013. Payment of regulatory fees is due 
September 20, 2013.

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 13-140, MD Docket No. 12-201; MD Docket No. 08-65; 
FCC 13-110, adopted on August 8, 2013 and released on August 12, 2013.

I. Procedural Matters

A. Final Paperwork Reduction Act of 1995 Analysis

    1. This Report and Order does not contain any new or modified 
information collection requirements subject to the Paperwork Reduction 
Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does 
not contain

[[Page 52434]]

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, see 5 U.S.C 801(a)(1)(A).\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

    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

    3. This Report and Order concludes the rulemaking proceeding 
initiated to collect $339,844,000 in regulatory fees for Fiscal Year 
(FY) 2013, pursuant to section 9 of the Communications Act of 1934, as 
amended (the Act or Communications Act) \3\ and the FY 2013 Further 
Continuing Appropriations Act.\4\ These regulatory fees are due in 
September 2013.
---------------------------------------------------------------------------

    \3\ Procedures for Assessment and Collection of Regulatory Fees; 
Assessment and Collection of Regulatory Fees for Fiscal Year 2013, 
Notice of Proposed Rulemaking and Further Notice of Proposed 
Rulemaking in MD Docket Nos. 12-201, 13-140, and 08-05, 28 FCC Rcd 
7790 (2013) (FY 2013 NPRM). Section 9 regulatory fees are mandated 
by Congress and collected to recover the regulatory costs associated 
with the Commission's enforcement, policy and rulemaking, user 
information, and international activities. 47 U.S.C. 159(a).
    \4\ In FY 2013, the Consolidated and Further Continuing 
Appropriations Act, Public Law 113-6 (2013) at Division F authorizes 
the Commission to collect offsetting regulatory fees at the level 
provided to the Commission's FY 2012 appropriation of $339,844,000. 
See Financial Services and General Government Appropriations Act, 
2012, Division C of Public Law 112-74, 125 Stat. 108-9 (2011). The 
sequester effectuated by the Budget Control Act of 2011, Public Law 
112-15, 101, 125 Stat. 241 (2011) reduced the Commission's budget 
for salary and expenses to $322,747,807. See Budget Control Act of 
2011, Public Law 112-15, 101, 125 Stat. 241 (2011) (amending 251 of 
the Balanced Budget and Emergency Deficit Control Act of 1985, 
Public Law 99-177, 99 Stat. 1037 (2005). However, the Budget Control 
Act does not alter the congressional directive set out in the 
Further Continuing Appropriations Act to collect $339,844,000 in 
regulatory fees for FY 2013.
---------------------------------------------------------------------------

    4. In addition to proposing the FY 2013 regulatory fees, the FY 
2013 NPRM \5\ (78 FR 34612, June 10, 2013) requested comment (see Table 
1 below) on a number of proposals to revise the regulatory fee program 
to more accurately reflect the regulatory activities of current 
Commission full time employees (FTEs).\6\
---------------------------------------------------------------------------

    \5\ Table 1 contains a list of commenters and their abbreviated 
names. We have used the same abbreviations in referring to those 
commenters where we discuss previous comments filed by the same 
parties. Where previous comments are cited we have added the date of 
the filing to clarify that the comment was filed to an earlier 
notice of proposed rulemaking.
    \6\ One FTE, a ``Full Time Equivalent'' or ``Full Time 
Employee,'' is a unit of measure equal to the work performed 
annually by a full time person (working a 40 hour workweek for a 
full year) assigned to the particular job, and subject to agency 
personnel staffing limitations established by the U.S. Office of 
Management and Budget.

                       Table 1--List of Commenters
------------------------------------------------------------------------
            Commenter                           Abbreviation
------------------------------------------------------------------------
                            Initial Comments
------------------------------------------------------------------------
American Cable Association.......  ACA.
AT&T Services, Inc...............  AT&T.
Competitive Carriers Association.  CCA.
Critical Messaging Association...  CMA.
DIRECTV, LLC.....................  DIRECTV.
CTIA--The Wireless                 CTIA.
 Association[supreg].
EchoStar Satellite Operating       EchoStar and DISH.
 Company and Hughes Network
 Systems, LLC and DISH Network
 LLC.
Fireweed Communications LLC and    Fireweed.
 Jeremy Lansman.
International Carrier Coalition..  ICC.
Intelsat License LLC.............  Intelsat.
Independent Telephone &            ITTA.
 Telecommunications Alliance.
Minority Media and                 MMTC.
 Telecommunications Council.
National Association of            NAB.
 Broadcasters.
North American Submarine Cable     NASCA.
 Association.
SES Americom, Inc., Inmarsat,      SES.
 Inc., and Telesat Canada.
Satellite Industry Association...  SIA.
Sarkes Tarzian, Inc. and Sky       Sarkes Tarzian and Sky Television.
 Television, LLC.
Telesat Canada...................  Telesat.
Telstra Incorporated and           Telstra.
 Australia-Japan Cable (Guam)
 Limited.
United States Telecom Association  USTA.
Martin D. Wade...................  Martin D. Wade.
------------------------------------------------------------------------
                             Reply Comments
------------------------------------------------------------------------
American Cable Association.......  ACA.
Arkansas Broadcasters Association  ABA.
 and Christian Broadcasting
 System, LTD.
Clearwire Corporation............  Clearwire.
CTIA--The Wireless                 CTIA.
 Association[supreg].
DIRECTV, LLC.....................  DIRECTV.
EchoStar Satellite Operating       EchoStar and DISH.
 Company and Hughes Network
 Systems, LLC and DISH Network
 LLC.
Google Fiber Inc.................  Google.
International Carrier Coalition..  ICC.
P. Randall Knowles...............  Knowles.

[[Page 52435]]

 
Bennett Z. Kobb..................  Kobb.
National Cable &                   NCTA.
 Telecommunications Association.
Satellite Industry Association...  SIA.
SES Americom, Inc., Inmarsat,      SES.
 Inc., and Telesat Canada.
Verizon and Verizon Wireless.....  Verizon.
------------------------------------------------------------------------

    5. In this Report and Order we look to current data to determine 
the number of FTEs working on regulation and oversight of Interstate 
Telecommunications Service Providers (ITSPs) \7\ and other fee 
categories and revise the calculation of direct FTEs in the 
International Bureau. We also adopt a 7.5 percent limit to any increase 
in regulatory fee assessments to industry segments resulting from such 
reallocation of FTEs based on current data.\8\ We will require Digital 
Low Power, Class A, and TV Translators/Boosters licensees simulcasting 
in both an analog or digital mode to pay only a single regulatory fee 
for the analog facility and its corresponding digital component. We 
conclude that these measures, which will take effect in FY 2013, will 
better align regulatory fees with regulatory work performed without 
imposing undue economic hardship on certain regulatees.
---------------------------------------------------------------------------

    \7\ ITSPs are interexchange carriers (IXCs), incumbent local 
exchange carriers (LECs), toll resellers, and other IXC service 
providers regulated by the Wireline Competition Bureau.
    \8\ The updated FTE data are current as of Sept. 30, 2012.
---------------------------------------------------------------------------

    6. This Report and Order also adopts several changes that will take 
effect in FY 2014. Among these, UHF and VHF television stations will be 
consolidated into one regulatory fee category. We will assess 
regulatory fees on Internet Protocol TV (IPTV) licensees and we will 
create a new fee category that will include both cable television and 
IPTV. Beginning in FY 2014, we will also require that all regulatory 
fee payments be made electronically and we will no longer mail out 
initial regulatory fee assessments to CMRS licensees. Finally, 
beginning in FY 2014, unpaid regulatory fees will be transferred for 
collection to the U.S. Department of the Treasury at the end of the 
payment period rather than 180 days thereafter.
    7. The FTE reallocations and the cap on fee increases we adopt 
today are interim measures that constitute the first step in 
comprehensively examining and reforming our regulatory fee program so 
that the fees paid by all licensees will more accurately reflect the 
current cost of regulating them. Various other issues relevant to 
revising our regulatory fee program were also raised in either the FY 
2013 NPRM or in comments submitted in response to it. Because we 
require further information to best determine what action to take on 
these complex issues, we will consolidate them for consideration in a 
Second Further Notice of Proposed Rulemaking that we will issue 
shortly. We recognize that these are complex issues and that resolving 
them will be difficult. Nevertheless, we intend to conclusively 
readjust regulatory fees within three years.

III. Background

    8. Each year the Commission derives the fees that Congress requires 
it to collect by determining the full-time equivalent number of 
employees performing the regulatory activities specified in section 
9(a), ``adjusted to take into account factors that are reasonably 
related to the benefits provided to the payer of the fee by the 
Commission's activities. . . .'' \9\ Regulatory fees must also cover 
the costs the Commission incurs in regulating entities that are 
statutorily exempt from paying regulatory fees,\10\ entities whose 
regulatory fees are waived,\11\ and entities that provide nonregulated 
services.\12\ To calculate regulatory fees, the Commission allocates 
the total amount to be collected among the various regulatory fee 
categories. This allocation is based on the number of FTEs assigned to 
work in each regulatory fee category. FTEs are categorized as 
``direct'' if they are performing regulatory activities in one of the 
``core'' bureaus, i.e., the Wireless Telecommunications, Media, 
Wireline Competition, and International Bureaus. All other FTEs are 
considered ``indirect.'' \13\ The total FTEs for each fee category is 
determined by counting the number of direct FTEs regulating licensees 
in that fee category, plus a proportional allocation of indirect FTEs. 
Finally, each regulatee within a fee category pays its proportionate 
share based on an objective measure, e.g., revenues, subscribers, or 
licenses.\14\
---------------------------------------------------------------------------

    \9\ 47 U.S.C. 159(b)(1)(A). When section 9 was adopted, the 
total FTEs were to be calculated based on the number of FTEs in the 
Private Radio Bureau, Mass Media Bureau, and Common Carrier Bureau. 
(The names of these bureaus were subsequently changed.) Satellites 
and submarine cable were regulated through the Common Carrier Bureau 
before the International Bureau was created.
    \10\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2004, Report and Order, 19 FCC Rcd 11662, 11666, para. 11 
(2004) (FY 2004 Report and Order). For example, governmental and 
nonprofit entities are exempt from regulatory fees under section 
9(h) of the Act. 47 U.S.C. 159(h); 47 CFR 1.1162.
    \11\ 47 CFR 1.1166.
    \12\ E.g., broadband services, non-U.S.-licensed space stations.
    \13\ The indirect FTEs are the employees from the following 
bureaus and offices: Enforcement Bureau, Consumer and Governmental 
Affairs Bureau, Public Safety and Homeland Security Bureau, Chairman 
and Commissioners' offices, Office of Managing Director, Office of 
General Counsel, Office of the Inspector General, Office of 
Communications Business Opportunities, Office of Engineering and 
Technology, Office of Legislative Affairs, Office of Strategic 
Planning and Policy Analysis, Office of Workplace Diversity, Office 
of Media Relations, and Office of Administrative Law Judges, 
totaling 967 FTEs.
    \14\ For a fuller description of this process, see Assessment 
and Collection of Regulatory Fees, Notice of Proposed Rulemaking, 27 
FCC Rcd 8458, 8461-62, paras. 8-11 (2012) (FY 2012 NPRM). The 
current numbers of direct FTEs are as follows: International Bureau, 
119; Media Bureau, 171; Wireline Competition Bureau, 160; and 
Wireless Telecommunications Bureau, 98. FTEs involved in section 309 
auctions, 194 FTEs, are not included in this analysis because 
auctions activities are funded separately.
---------------------------------------------------------------------------

    9. We began our regulatory fee reform analysis in the FY 2008 
Further Notice of Proposed Rulemaking.\15\ In that proceeding, we 
discussed the need to revise and improve our regulatory fee process to 
better reflect industry, regulatory, and Commission organizational 
changes.\16\ We sought comment on several issues, e.g., reviewing FTE 
allocations,\17\ adding wireless providers to the ITSP category,\18\ 
adding a category for IPTV,\19\

[[Page 52436]]

and adopting a per-subscriber fee for direct broadcast satellite 
(DBS).\20\ Lacking a sufficient record, we did not take any further 
action on general industry-wide regulatory fee reform at that time; 
although we took a significant step in regulatory fee reform in the 
subsequent Submarine Cable Order wherein we adopted a new submarine 
cable bearer circuit methodology for assessing regulatory fees on a 
cable landing license basis.\21\
---------------------------------------------------------------------------

    \15\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, Report and Order and Further Notice of Proposed 
Rulemaking, 24 FCC Rcd 6388 (2008) (FY 2008 FNPRM).
    \16\ FY 2008 FNPRM, 24 FCC Rcd at 6402, para. 30.
    \17\ FY 2008 FNPRM, 24 FCC Rcd at 6405, para. 41. USTA proposed 
updating the FTE calculations. USTA Comments (9/25/08) at 2-4. ITTA 
advocated an annual update of FTE data. ITTA Comments (9/25/08) at 
7-9.
    \18\ FY 2008 FNPRM, 24 FCC Rcd at 6404, para. 40. ITTA advocated 
combining the wireless and ITSP categories. ITTA Comments (9/25/08) 
at 7-9.
    \19\ FY 2008 FNPRM, 24 FCC Rcd at 6406-07, paras. 48-49.
    \20\ FY 2008 FNPRM, 24 FCC Rcd at 6407, para. 50. NCTA 
recommended adopting a per-subscriber based regulatory fee for all 
multichannel video programming distributors (MVPDs). NCTA Comments 
(9/25/08) at 2-4.
    \21\ This methodology allocates international bearer circuit 
costs among service providers without distinguishing between common 
carriers and non-common carriers, by assessing a flat per cable 
landing license fee for all submarine cable systems, with higher 
fees for larger submarine cable systems and lower fees for smaller 
systems. Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, Second Report and Order, 24 FCC Rcd 4208, 4213, para. 11 
(2009) (Submarine Cable Order).
---------------------------------------------------------------------------

    10. In 2012, a report on the Commission's regulatory fee program 
issued by the Government Accountability Office provided support for a 
fundamental reevaluation of how to align regulatory fees more closely 
with regulatory costs.\22\ In the FY 2012 NPRM,\23\ we acknowledged 
that the FTE allocations were outdated; that revising the allocations 
based on FTEs, without other adjustments, would drastically increase 
the regulatory fees for International Bureau regulatees; and we 
suggested that not all International Bureau FTEs should be considered 
direct FTEs. Comments filed to the FY 2012 NPRM were similar to those 
filed by those commenters in this proceeding.\24\
---------------------------------------------------------------------------

    \22\ See GAO, Federal Communications Commission, ``Regulatory 
Fee Process Needs to be Updated,'' Aug. 2012, GAO-12-686 (GAO 
Report).
    \23\ FY 2012 NPRM, 27 FCC Rcd 8458.
    \24\ For example, some commenters argued, in both proceedings, 
that the Commission should update its FTEs in each core bureau (AT&T 
Comments (9/17/12) at 3-4, CTIA Reply Comments (10/23/12) at 2-4, 
Frontier Communications Reply Comments (10/23/12) at 2-6, NCTA Reply 
Comments (10/23/12) at 3-6, USTA Comments (9/17/12) at 2-7, Verizon 
Comments (9/17/12) at 2-4, ITTA Ex Parte (2/11/13) at 1-2); that DBS 
providers should pay regulatory fees to cover Media Bureau 
activities (ACA Reply Comments (10/23/12) at 4-12); that DBS 
providers should not pay regulatory fees to cover Media Bureau 
activities (DIRECTV Ex Parte (11/9/12) at 1-18); and that satellite 
and submarine cable operators should not be required to pay 
regulatory fees based on the total number of FTEs in the 
International Bureau but that the fees should instead be lower 
(America Movil Comments (9/17/12) at 2-6, Globalstar Reply Comments 
(10/17/12) at 1-2, Global VSAT Forum Reply Comments (10/23/12) at 4-
7, Hughes Network Systems Ex Parte (8/1/12) at 1, Intelsat Reply 
Comments (10/23/12) at 2-10, (ICC Comments (9/17/12) at 5-17, NASCA 
Comments (9/17/12) at 4-30, SES Ex Parte (3/8/13) at 1-2, SIA 
Comments (9/17/12) at 12-15, Sirius XM Radio Inc. Reply Comments 
(10/23/12) at 2-5, Telstra Comments (9/17/12) at 3). To the extent 
that the FY 2012 and FY 2013 NPRMs raised the same issues for 
comment, we have considered herein the comments filed in response to 
both NPRMs.
---------------------------------------------------------------------------

    11. In the FY 2013 NPRM, we tentatively concluded that our 
methodology of assigning direct and indirect FTEs should be revised to 
use current FTE data and that we should reexamine how the direct and 
indirect costs of our current regulatory activities are allocated among 
various categories of Commission licensees.\25\ Because any change in 
the allocation of the regulatory fee amount for one category of fee 
payors necessarily affects the fees paid by payors in all other fee 
categories, we also proposed that such revisions should take into 
account the impact on all regulatees. We proposed that the 
International Bureau should no longer be entirely classified as a 
``core bureau.'' \26\ We sought comment on specific proposals to revise 
the allocation of direct and indirect FTEs as well as on more general 
policy and procedural proposals to assure that regulatory fees are 
equitable, administrable, and sustainable.\27\
---------------------------------------------------------------------------

    \25\ FY 2013 NPRM, 28 FCC Rcd at 7797, para. 16.
    \26\ FY 2013 NPRM, 28 FCC Rcd at 7799, para. 19.
    \27\ FY 2013 NPRM, 28 FCC Rcd at 7798-7807, paras. 17-40.
---------------------------------------------------------------------------

IV. Discussion

A. Using Current FTE Data

    12. As discussed in the FY 2013 NPRM, the current allocations of 
direct and indirect FTEs are taken from FTE data compiled in FY 1998 
and may no longer accurately reflect the time that Commission employees 
devote to these activities.\28\ For example, using 1998 FTE data 
results in ITSPs paying 47 percent of the total annual regulatory fee 
collection, while the Wireline Competition Bureau employs 29.2 percent 
of the Commission's direct FTEs. To address this anomaly, in the FY 
2013 NPRM we proposed to use current FY 2012 FTE data.\29\ Several 
commenters, e.g., ITTA, AT&T, CTIA, and USTA, generally supported this 
proposal.\30\ NAB and other commenters suggest that we defer using this 
data until we complete an examination of the effects of implementing 
it.\31\ We find that it is consistent with section 9 of the Act to 
better align, to the extent feasible, regulatory fees with the current 
costs of Commission oversight and regulation and that the critical 
issue, noted by NAB and other commenters, is how to equitably resolve 
the issues of fairness and administrability the use of the new data 
will bring about.
---------------------------------------------------------------------------

    \28\ FY 2013 NPRM, 28 FCC Rcd at 7794-95, para. 9.
    \29\ FY 2013 NPRM, 28 FCC Rcd at 7798, para. 17.
    \30\ See, e.g., ITTA Comments at 3-7; CTIA Comments at 10; USTA 
Comments at 2-4; AT&T Comments at 1-2.
    \31\ NAB Comments at 6 (requesting that ``the Commission 
temporarily defer the implementation of the proposals set forth in 
the Notice to allow time for additional analysis.''). See also ACA 
Comments at 12 (``it would be prudent and fair for the Commission to 
do what it can to maintain the regulatory fee status quo until 
decisions are made on implementing the pending reforms affecting the 
fees paid by cable operators.''); ABA Reply Comments at 3 (urging 
the Commission to maintain the current allocations for FY 2013).
---------------------------------------------------------------------------

    13. We next consider an allocation methodology for direct and 
indirect FTEs to better align regulatory fees with the level of current 
regulation and we make the allocation more transparent.\32\ Using FY 
2012 FTE data,\33\ without other significant changes in our 
methodology, would reduce the percentage of regulatory fees allocated 
to Wireline Competition Bureau regulatees from 47 percent to 29.2 
percent and increase the percentage of fees allocated to International 
Bureau regulatees from 6.3 percent to 22 percent.\34\ Therefore, 
substituting current FTE data for FY 1998 FTE data, without other 
adjustments, would subject international service providers to 
significant fee increases.\35\
---------------------------------------------------------------------------

    \32\ The GAO noted the lack of transparency of the regulatory 
fee process and was particularly concerned with the regulatory fee 
allocations for the International Bureau and the Wireline 
Competition Bureau. See GAO Report at p. 23.
    \33\ The FTEs used herein are determined as of Sept. 30, 2012.
    \34\ FY 2012 NPRM, 27 FCC Rcd at 8467, para. 25.
    \35\ Id.
---------------------------------------------------------------------------

    14. We find no persuasive argument for perpetuating the use of 14 
year-old FTE data as the basis for regulatory fees in FY 2013, and we 
therefore adopt our proposal to use current FY 2012 FTE data to 
calculate FY 2013 regulatory fees. Instead, the critical issue, noted 
by NAB and other commenters, is whether and to what extent we should 
adjust the new fees that result from using the current FTE data to 
assure that our goals of fairness, sustainability, and administrability 
are met.

B. Adjustments to Revised Fees

    15. Reallocation of International Bureau FTEs. It is not surprising 
that changes in the scope and focus of Commission regulation since FY 
1998 produce substantial shifts in the allocation of regulatory fees 
when current FTE data is used. In the FY 2013 NPRM we analyzed these in 
detail.\36\ The largest shifts would occur in the fees paid by 
International Bureau and Wireline Competition Bureau licensees: Fees 
paid by the former would triple, and fees paid by the latter would

[[Page 52437]]

decrease by about 40 percent. The fees paid by wireless and media 
service licensees would also change, but to a lesser extent.\37\
---------------------------------------------------------------------------

    \36\ FY 2013 NPRM, 28 FCC Rcd at 7795-98, paras. 11-17.
    \37\ FY 2012 NPRM, 27 FCC Rcd 8458, 8467, para. 25.
---------------------------------------------------------------------------

    16. The first issue we face is how the Commission should address 
these fluctuations in setting regulatory fees for FY 2013. One way 
would be to take a fresh look at how direct and indirect FTEs are 
allocated to determine whether these allocations accurately reflect the 
regulatory activities performed by FTEs in the core bureaus. As we have 
previously noted, this analysis is complicated by the convergence of 
digitally-based services, which can have the practical effect of 
causing the work of FTEs in one bureau to tangentially benefit 
licensees in another bureau. In one singular case, however, the work of 
a bureau's FTEs primarily benefits licensees regulated by other 
bureaus. As we discussed at length in the FY 2012 and FY 2013 NPRMs, 
the International Bureau is exceptional compared to the other licensing 
bureaus in that the work of many of its FTEs predominantly benefits 
other bureaus' licensees rather than its own.\38\ We incorporate that 
analysis by reference herein. Based on the facts and analysis we 
presented, we adopt our proposal, with one slight modification. 
Specifically, as proposed in the FY 2013 NPRM, we reallocate the FTEs 
in the International Bureau's Strategic Analysis and Negotiation 
Division (SAND), as well as all but 27 direct FTEs in the Policy and 
Satellite Divisions as indirect FTEs. In addition, we allocate one FTE 
from the Office of the Bureau Chief as direct.\39\ As commenters 
suggest, we find that, based on further examination of the work done in 
the Office of the Bureau Chief, it is not appropriate to treat the 
entire office as indirect.\40\ We therefore now find a more appropriate 
number representing the direct FTEs actually engaged in the regulation 
and oversight of International Bureau licensees is 28.\41\
---------------------------------------------------------------------------

    \38\ FY 2012 NPRM, supra at paras. 26--27; FY 2013 NPRM, 28 FCC 
Rcd at 7799-7803, paras. 19-28.
    \39\ Most commenters agree with our proposal. See, e.g., ICC 
Comments at 2-3 & Reply Comments at 3-4 (supports FY 2013 NPRM 
proposal for International Bureau); Intelsat Comments at 2-3 (same); 
AT&T Comments at 2 (same); Telstra Comments at 2 (same); SES 
Comments at 2 (same); SIA Comments at 4-9 & Reply Comments at 2-5 
(same); EchoStar and DISH Comments at 6 & Reply Comments at 2-4 
(same); NASCA Comments at 3-8 (same).
    \40\ See CTIA Comments at 10-11.
    \41\ For this reason, the International Bureau would remain a 
core bureau, in part.
---------------------------------------------------------------------------

    17. Not all commenters agreed with these proposals, although 
commenters did agree that we should not assign all of the International 
Bureau FTEs as direct FTEs. USTA suggests that we follow the proposal 
in the FY 2012 NPRM and remove only one division, SAND, from the 
``core'' International Bureau.\42\ Several commenters agree that many 
of the FTEs in the International Bureau should not be considered 
direct, but observe that similar situations occur in other bureaus and 
urge us to take a closer look at all bureaus.\43\
---------------------------------------------------------------------------

    \42\ USTA Comments at 6-7.
    \43\ See, e.g., ITTA Comments at 5-6 (Wireline Competition 
Bureau's work on Universal Service Fund issues benefits regulatees 
in the wireless, cable, and satellite industries); CCA Comments at 6 
(the Commission ``should review the functions and activities of all 
Bureaus rather than just the International Bureau.''); Comments of 
EchoStar and DISH at 7 & Reply Comments at 4 (Commission should 
``apply the same type of enhanced scrutiny . . . to bureaus and 
offices currently categorized as consisting of `indirect' FTEs' '').
---------------------------------------------------------------------------

    18. NAB and ABA recommend that we should not limit our analysis to 
the International Bureau, but should consider all such cross-cutting 
work throughout the Commission before revising our FTE 
reallocations.\44\ Commenters have provided specific suggestions for 
other reallocations, e.g., assigning Enforcement Bureau and Consumer & 
Governmental Affairs FTEs as direct costs to the Wireline Competition 
Bureau, Wireless Telecommunications Bureau, and Media Bureau \45\; 
assigning some Media Bureau FTEs to the Wireless Telecommunications 
Bureau \46\; reallocating regulatory fees among International Bureau 
regulatees in order to lower the submarine cable system fee \47\; as 
well as assessing Media Bureau costs to DBS providers.\48\
---------------------------------------------------------------------------

    \44\ NAB Comments at 4-5 (``The Commission should either 
undertake a complete accounting or the actual functions of FTEs in 
the core bureaus, and allocate regulatory fees accordingly, or 
consider retaining the existing process of allocating fees based on 
the percentages of FTEs in the core bureaus.''); ABA Reply Comments 
at 2-3.
    \45\ SIA Comments at 10-11 & Reply Comments at 5-6.
    \46\ NAB Comments at 4 (some Media Bureau FTEs work on spectrum 
and wireless-related issues).
    \47\ NASCA Comments at 8-9; Telstra Comments at 2-3; ICC Reply 
Comments at 2.
    \48\ We sought comment on this issue and intend to address it in 
a subsequent proceeding. See FY 2013 NPRM, 28 FCC Rcd at 6407, para. 
50. See, e.g., AT&T Comments at 4-5 (recommending a single MVPD fee 
category that would include all MVPDs); ACA Comments at 13-18 (same) 
& Reply Comments at 1-6 (``this much-needed regulatory reform will 
ensure regulatory parity between cable operators and DBS 
providers''); NCTA Reply Comments at 2-5 (``All MVPDs are subject to 
some level of regulation administered by the Media Bureau and they 
all benefit from the Bureau's regulation of other entities.''); 
DIRECTV Comments at 1-20 (opposing including DBS in such a 
category); EchoStar and DISH Comments at 18-20 & Reply Comments at 
4-6 (same).
---------------------------------------------------------------------------

    19. We recognize that there is substantial convergence in the 
industry and organizational change in the Commission that may support 
additional FTE reallocations after further analysis. The high 
percentage of indirect FTEs is indicative of the fact that many 
Commission activities and costs are not limited to a particular fee 
category and instead benefit the Commission as a whole. Even without 
the changes we adopt today, the number of non-core bureau FTEs are 
almost double the number of core bureau (non-auction) FTEs, 
demonstrating that our common costs far outweigh costs assigned to a 
particular core bureau.
    20. CTIA contends that ``selective reallocation'' would be 
``arbitrary and capricious'' \49\ upending the regulatory fee structure 
in contravention of section 9 of the Act.\50\ CTIA further maintains 
that the Commission's proposal reflects a system of cost allocation 
that does not depend on the cost of Commission regulation but rather on 
a ``fair share'' rationale that is incompatible with the Act.\51\ This 
would cause ``a tremendous amount of complexity and uncertainty'' and, 
if applied broadly, would ``threaten[ ] the administrability of the 
regulatory fee program.'' \52\ We disagree with these arguments. 
Section 9(a) and (b)(1)(A) in relevant part directs the Commission to 
establish regulatory fees based on the number of FTEs engaged in 
regulatory activities within the named bureaus ``and other offices of 
the Commission.'' Thus, the plain wording of the statute requires the 
Commission to calculate fees based on what FTEs are doing, not on where 
they are located. Nowhere does the statute explicitly or implicitly 
limit the Commission's ability to reassign FTEs, and the costs they 
represent, among the various bureaus. Furthermore, because the 
``benefits provided'' to fee payors by International Bureau FTEs inure 
mainly to licensees in other bureaus, the

[[Page 52438]]

reallocation of these FTEs to the other bureaus is consistent with 
section 9(b)(1)(A) and is not arbitrary and capricious. Limiting 
reassignments to the FTEs in SAND as USTA proposes would also not be 
appropriate because further analysis has shown that the work of some 
FTEs in the International Bureau's Policy and Satellite Divisions also 
predominantly benefits the licensees of other bureaus.
---------------------------------------------------------------------------

    \49\ CTIA Comments at 12 (``It would be arbitrary and capricious 
for the Commission to implement any reallocation of FTEs in the WCB 
without providing parties sufficient time and information to 
adequately consider the proposal.'')
    \50\ CTIA Comments at 7. CTIA states that ``the Commission's 
proposal to subject wireless regulatees to the ITSP regulatory fee 
category does not satisfy the necessary conditions set forth in 
Section 9.'' Id.
    \51\ CTIA Comments at 3. CTIA contends that the wireless 
industry's overall contribution to the Commission's budget includes 
spectrum auction proceeds. Id.
    \52\ CTIA's concern is that the FY 2013 NPRM does not ``provide 
a governing standard and, if applied broadly, would upend the 
regulatory fee structure.'' CTIA Comments at 11. The only specific 
example given by CTIA to support this argument is that the FY 2013 
NPRM ``fails to explain why all FTEs in the IB front office would be 
treated to a different standard than front office personnel in other 
core bureaus, none of whom are considered indirect FTEs.'' Id.
---------------------------------------------------------------------------

    21. Nor can we agree with NAB that we must toll all FTE 
reassignments until we have reexamined the allocation of FTEs 
throughout the Commission. As EchoStar and DISH observe, the fact that 
we have not yet examined all bureaus on a division or branch level 
should not prevent us from adopting our proposal.\53\ As we have noted, 
the extent to which the International Bureau's FTEs are engaged in 
activities that primarily benefit licensees regulated by other bureaus 
is sui generis, and no commenter in this proceeding has submitted any 
facts that contradict this finding. Moreover, our analysis shows that 
the digitally-driven convergence of formerly separate services will 
make a similar examination of possible FTE reallocations among the 
other licensing bureaus a much more difficult and lengthy task. It 
would be inconsistent with section 9 to delay reallocating the 
International Bureau FTEs, where the reallocation is clearly warranted, 
while we engage in painstaking examinations of less clear and more 
factually complex situations in the other bureaus. Finally, because the 
International Bureau's situation is exceptional, we do not perceive 
how, as CTIA would argue, that the proposed reallocation can constitute 
a ``slippery slope.'' \54\ For these reasons we conclude it is 
reasonable and consistent with section 9 of the Act to readjust the 
assignment of FTEs in the bureau where the record demonstrates the 
clearest case for reassignment.
---------------------------------------------------------------------------

    \53\ EchoStar and DISH Reply Comments at 4.
    \54\ CTIA Reply Comments at 5, quoting USTA Comments at 7.
---------------------------------------------------------------------------

    22. At the same time, however, we recognize that a reexamination of 
how FTEs are allocated throughout the Commission is an indispensable 
part of comprehensively revising the Commission's regulatory fee 
program. For this reason as stated in paragraph 5 above, we will issue 
a Second Further Notice of Proposed Rulemaking in the near future to 
examine these, and other related issues.
    23. Limiting Fee Increases. As noted in para. 13 above, using 
current FTE figures causes shifts in the allocation of regulatory fee 
collection among the Bureaus and, consequently, the fees their 
licensees will pay. Because we are required by statute to set 
regulatory fees that will recover the entire amount of our 
appropriation, any reduction in the proportion of all regulatory fees 
paid by licensees in one fee category will necessarily result in an 
increase in regulatory fees paid by licensees in others. For the same 
reason, limiting fee increases for licensees in some fee categories 
will necessarily limit fee decreases that licensees in other fee 
categories would otherwise receive. With these considerations in mind, 
and to avoid sudden and large changes in the amount of fees paid by 
various classes of regulatees, we proposed in the FY 2013 NPRM to cap 
increases in FY 2013 fees to no more than 7.5 percent.\55\
---------------------------------------------------------------------------

    \55\ FY 2013 NPRM, 28 FCC Rcd at 7803-04, paras. 30-31.
---------------------------------------------------------------------------

    24. USTA strongly opposes this limitation on fee rate increases or 
any other transition to fully normalized fees, contending that such 
proposals try to insure fairness to other fee payors while ignoring the 
fact that ITSPs have been paying a disproportionate share of regulatory 
fees for a decade.\56\ ITTA argues that any cap should only be applied 
in FY 2013.\57\ AT&T contends that a cap on increases would be 
unnecessary if the Commission fairly accounted for FTE distribution 
among all the core bureaus.\58\ The International Carrier Coalition 
agreed with our finding that limiting fee increases would have the 
unavoidable effect of also limiting fee decreases, and stated that for 
that reason ``the proposed 7.5% cap on increases/decreases of 
regulatory fees should be an interim measure only.'' \59\
---------------------------------------------------------------------------

    \56\ USTA Comments at 4-5. Several commenters agree that a 
limitation on fee increases is needed to prevent economic hardship. 
See, e.g., CCA Comments at 6 (``any fee increases resulting from the 
use of updated data should be capped to limit the severity of the 
impact on payors''); Echostar and DISH Comments at 13-14 (``a 
reasonable approach would be for the Commission to establish a 
guideline providing for a multi-year phase in of any fee increase 
where the change would exceed the rate of inflation''); NASCA 
Comments at 10 (a 7.5% ``cap on fee increases is consistent with the 
requirements of Section 9''); ACA Comments at 11 (supporting the 
proposed 7.5% cap); SIA Reply Comments at 9-10 (a cap on fee 
increases is needed); ICC Reply Comments at 4 (the proposed cap 
should be an interim measure only); ABA Reply Comments at 2 (even 
with the 7.5% cap, the fee increase will cause ``irreparable 
injury'' to small broadcasters). See also NAB Comments at 6 (``We 
also urge the Commission to be cognizant of the burden that 
regulatory fees impose on some Commission licensees, particularly 
the smallest broadcast stations, which may have a few as two or 
three permanent staff.'').
    \57\ ITTA Comments at 2.
    \58\ AT&T Comments at 2.
    \59\ ICC Comments at 7. Also see note 69 below.
---------------------------------------------------------------------------

    25. We disagree with the commenters objecting to the imposition of 
the 7.5% cap on fee increases. As an initial matter we note that the 
imposition of a cap on fee increases is not unprecedented. In 1997 we 
imposed a 25 percent cap to avoid the prospect of ``fee shock'' 
resulting from large and unpredictable fluctuations in fees.\60\ Today, 
a different set of circumstances supports the imposition of a more 
modest, interim cap. The regulatory fees we adopt today reflect only 
the first of a series of changes that we will consider in the 
comprehensive revision of our regulatory fee program. As we noted in 
the FY 2013 NPRM, and in para. 5 above, there are unresolved regulatory 
fee reform initiatives on which we will seek comment and which could be 
adopted and implemented in setting regulatory fees in FY 2014.\61\ 
Capping fee increases at 7.5% is a conservative interim approach to 
assure that any fee increases resulting from use of the new FTE data 
will be reasonable as we transition to a revised regulatory fee program 
in which regulatory fees will more closely reflect the current costs 
and benefits of Commission regulation.
---------------------------------------------------------------------------

    \60\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 1997, Report and Order, 12 FCC Rcd 17161, 17176, para. 37 
(1997). The fee shock the Commission sought to avoid was caused by 
the use of employee time sheet entries to calculate direct and 
indirect FTEs, a methodology that was ultimately abandoned as 
unworkable.
    \61\ FY 2013 NPRM, 28 FCC Rcd at 7803, para. 30.
---------------------------------------------------------------------------

    26. USTA and other commenters have pointed out that ITSPs will be 
most affected by any limitation on fee increases. USTA opposes the 7.5% 
cap on fee increases, contending that ITSPs have been paying ``an 
inordinate share of regulatory fees, paying 47 percent of the total 
fees while only 29.2 percent of the direct FTEs are assigned to the 
Wireline Competition Bureau.'' \62\
---------------------------------------------------------------------------

    \62\ USTA Comments at 4-5. AT&T contends that a cap on increases 
should be unnecessary if the Commission would fairly account for FTE 
distribution among the core bureaus. AT&T Comments at 2.
---------------------------------------------------------------------------

    27. We agree with USTA's contention that ITSP fees should be 
reduced to more accurately reflect the regulatory costs that the 
industry currently generates, and thus the interim fees we adopt today 
give ITSPs a significant reduction in their FY 2013 fees. However, we 
cannot ``flash cut'' to immediate, unadjusted use of the FY 2012 FTE 
data without engendering significant and unexpected fee increases for 
other categories of fee payors. As noted above, the cap we impose on 
fee increases for some licensees will unavoidably limit the fee 
reductions other licensees, like ITSPs, would otherwise enjoy; simply 
put, capping fee increases reduces the amount of money available to 
effectuate all of the

[[Page 52439]]

reductions in this fiscal year. We are satisfied, however, that as an 
interim measure the limitations on fee increases are reasonable, and 
the resulting fee changes are likewise reasonable. Moreover, as this is 
an interim measure, we commit to revisit these issues and make whatever 
further fee reductions are warranted in the course of adopting further 
revisions to our regulatory fee program.\63\
---------------------------------------------------------------------------

    \63\ ITTA proposes a 14% limitation, for one year. ITTA Ex Parte 
Communication (July 11, 2013) at 2. For the reasons discussed above, 
we disagree with ITTA's proposal.
---------------------------------------------------------------------------

    28. Limiting Fee Decreases. We are confronted with somewhat 
different issues in evaluating whether to cap the amount of the fee 
decrease that any class of fee payors might otherwise receive as a 
result of our use of current FTE data. The revised FY 2013 fee 
calculations appearing at Attachment B of the FY 2013 NPRM reflect both 
a 10% cap on decreases, as well as a 7.5% cap on increases.\64\ 
Although the caption to Attachment B clearly stated that the fees 
resulted from the imposition of a 7.5% cap, it did not state that the 
fees also reflected a 10% cap on decreases. The text of the FY 2013 
NPRM did not reference this fact, however, nor did it request comment 
on the issue of capping fee decreases. Although we requested comment on 
the general issues of limiting fee increases and adopting possible 
measures to address the impacts of such limits, no party specifically 
addressed the issue of an offsetting limit to decreases in 
comments.\65\ Under these circumstances, we cannot find that interested 
parties were afforded an adequate opportunity to comment on the issue 
of capping fee decreases. Although this situation would normally be 
addressed by requesting comments on this issue, here we would not be 
able to receive and analyze further comments in time to publish and 
collect fees by the end of FY 2013. Further, as stated above, we find 
the FY 2013 fee changes resulting from imposition of a 7.5% cap on fee 
increases to be reasonable. For these reasons we find it necessary to 
adopt revised FY 2013 fee calculations that reflect only the 
application of a 7.5% cap on fee increases and no cap on fee decreases. 
The revised fees are set forth in Table 2 and Table 3 below. The 
sources of the units for the fees appear in Table 4.
---------------------------------------------------------------------------

    \64\ 28 FCC Rcd 7790, 7823, Attachment B, ``Revised FTE (as of 
9/30/12) Allocations, Fee Rate Increases Capped at 7.5%, Prior to 
Rounding.''
    \65\ As noted at para. 22 supra, ICC in its comments referred to 
``the proposed 7.5% cap on fee increases/decreases,'' but in context 
ICC was simply addressing the fact, discussed above, that limiting 
fee increases will necessarily limit fee decreases as well. ICC did 
not discuss the specific issue of whether fee decreases should be 
capped and, if so, at what level.

  Table 2--Revised FTE (as of 9/30/12) Allocations,\5\ Fee Rate Increases Capped at 7.5%; Calculation of FY 2013 Revenue Requirements and Pro-Rata Fees
     [The first ten regulatory fee categories in the table 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.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Rounded &
                                                                                    FY 2012      Pro-Rated  FY  Uncapped FY   capped  FY
                    Fee category                      FY 2013  payment   Years      revenue      2013  revenue      2013         2013      Expected  FY
                                                            units                  estimate       requirement    regulatory   regulatory   2013  revenue
                                                                                                                    fee          fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)...............................             1,400      10         490,000         605,350           43           40         560,000
PLMRS (Shared use)..................................            15,000      10       2,250,000       2,897,033           19           15       2,250,000
Microwave...........................................            13,200      10       2,640,000       2,853,794           22           20       2,640,000
218-219 MHz (Formerly IVDS).........................                 5      10           3,500           4,324           86           75           3,750
Marine (Ship).......................................             6,550      10         655,000         951,265           15           10         655,000
GMRS................................................             7,900       5         192,500         345,914            9            5         197,500
Aviation (Aircraft).................................             2,900      10         290,000         432,393           15           10         290,000
Marine (Coast)......................................               285      10         142,500         172,957           61           55         156,750
Aviation (Ground)...................................               900      10         135,000         172,957           19           15         135,000
Amateur Vanity Call Signs...........................            14,300      10         214,500         259,436         1.81         1.61         230,230
AM Class A \4\......................................                65       1         250,100         294,808        4,536        4,400         286,000
AM Class B \4\......................................             1,510       1       3,125,875       3,664,040        2,427        2,275       3,435,250
AM Class C \4\......................................               890       1       1,107,975       1,305,578        1,467        1,350       1,201,500
AM Class D \4\......................................             1,500       1       3,698,400       4,337,887        2,892        2,575       3,862,500
FM Classes A, B1 & C3 \4\...........................             3,075       1       7,764,750       8,970,581        2,917        2,725       8,379,375
FM Classes B, C, C0, C1 & C2 \4\....................             3,140       1       9,513,000      11,034,236        3,514        3,375      10,597,500
AM Construction Permits.............................                51       1          35,750          42,115          826          590          30,090
FM Construction Permits \1\.........................               190       1          84,000         421,154        2,217          750         142,500
Satellite TV........................................               125       1         178,125         210,577        1,685        1,525         190,625
Satellite TV Construction Permit....................                 3       1           3,580           4,212        1,404          960           2,880
VHF Markets 1-10....................................                23       1       1,761,650       2,366,150      102,876       86,075       1,979,725
VHF Markets 11-25...................................                23       1       1,836,875       2,454,013      106,696       78,975       1,816,425
VHF Markets 26-50...................................                39       1       1,512,400       2,034,276       52,161       42,775       1,668,225
VHF Markets 51-100..................................                61       1       1,255,500       1,757,149       28,806       22,475       1,370,975
VHF Remaining Markets...............................               137       1         798,025       1,020,393        7,448        6,250         856,250
VHF Construction Permits \1\........................                 1       1          11,650           6,250        6,250        6,250           6,250
UHF Markets 1-10....................................               112       1       3,853,150       4,248,631       37,934       38,000       4,256,000
UHF Markets 11-25...................................               109       1       3,458,250       3,781,729       34,695       35,050       3,820,450
UHF Markets 26-50...................................               140       1       2,959,875       3,232,818       23,092       23,550       3,297,000
UHF Markets 51-100..................................               239       1       2,868,750       3,099,301       12,968       13,700       3,274,300
UHF Remaining Markets...............................               247       1         845,975         916,915        3,712        3,675         907,725
UHF Construction Permits \1\........................                 4       1          23,975          14,700        3,675        3,675          14,700
Broadcast Auxiliaries...............................            25,400       1         248,000         336,923           13           10         254,000
LPTV/Translators/Boosters/Class A TV................             3,725       1       1,436,820       1,684,616          452          410       1,527,250
CARS Stations.......................................               325       1         178,125         210,634          648          510         165,750
Cable TV Systems....................................        60,000,000       1      59,090,000      69,719,942        1.162         1.02      61,200,000
Interstate Telecommunication Service Providers......   $39,000,000,000       1     148,875,000     118,979,384      0.00305      0.00347     135,330,000
CMRS Mobile Services (Cellular/Public Mobile).......       326,000,000       1      53,210,000      63,105,583        0.194         0.18      58,680,000
CMRS Messag. Services...............................         3,000,000       1         272,000         240,000       0.0800        0.080         240,000

[[Page 52440]]

 
BRS \2\.............................................               920       1         451,250         693,680          754          510         469,200
LMDS................................................               170       1         225,625         128,180          754          510          86,700
Per 64 kbps Int'l Bearer Circuits Terrestrial                3,823,249       1       1,157,602       1,066,139         .279          .27       1,032,277
 (Common) & Satellite (Common & Non-Common).........
Submarine Cable Providers (see chart in Appendix C)              39.19       1       8,150,984       7,504,167      191,494      217,675       8,530,139
 \3\................................................
Earth Stations......................................             3,400       1         893,750         824,068          242          275         935,000
Space Stations (Geostationary)......................                87       1      11,560,125      10,646,958      122,379      139,100      12,101,700
Space Stations (Non-Geostationary)..................                 6       1         858,900         791,105      131,851      149,875         899,250
Total Estimated Revenue to be Collected.............  ................  ......     340,568,811     339,844,006  ...........  ...........     339,965,741
Total Revenue Requirement...........................  ................  ......     339,844,000     339,844,000  ...........  ...........     339,844,000
Difference..........................................  ................  ......         724,811               6  ...........  ...........         121,741
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ 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. 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 Table 3 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 2013 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
  service. The actual FY 2013 regulatory fees for AM/FM radio stations are listed on a grid located at the end of Table 3.
\5\ The allocation percentages represent FTE data as of September 30, 2012, and include the proposal to use 28 Direct FTEs (rather than 119 FTEs) for
  the International Bureau.


 Table 3--Revised FTE (as of 9/30/12) Allocations,\1\ Fee Rate Increases
           Capped at 7.5%; FY 2013 Schedule of Regulatory Fees
   [The first eleven regulatory fee categories in the table 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 regulatory fee  (U.S.
              Fee category                             $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47  40
 CFR part 90).
Microwave (per license) (47 CFR part     20
 101).
218-219 MHz (Formerly Interactive Video  75
 Data Service) (per license) (47 CFR
 part 95).
Marine (Ship) (per station) (47 CFR      10
 part 80).
Marine (Coast) (per license) (47 CFR     55
 part 80).
General Mobile Radio Service (per        5
 license) (47 CFR part 95).
Rural Radio (47 CFR part 22)             15
 (previously listed under the Land
 Mobile category).
PLMRS (Shared Use) (per license) (47     15
 CFR part 90).
Aviation (Aircraft) (per station) (47    10
 CFR part 87).
Aviation (Ground) (per license) (47 CFR  15
 part 87).
Amateur Vanity Call Signs (per call      1.61
 sign) (47 CFR part 97).
CMRS Mobile/Cellular Services (per       .18
 unit) (47 CFR parts 20, 22, 24, 27, 80
 and 90).
CMRS Messaging Services (per unit) (47   .08
 CFR parts 20, 22, 24 and 90).
Broadband Radio Service (formerly MMDS/  510
 MDS) (per license) (47 CFR part 27).    510
Local Multipoint Distribution Service
 (per call sign) (47 CFR, part 101).
AM Radio Construction Permits..........  590
FM Radio Construction Permits..........  750
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10.......................  86,075
    Markets 11-25......................  78,975
    Markets 26-50......................  42,775
    Markets 51-100.....................  22,475
    Remaining Markets..................  6,250
    Construction Permits...............  6,250
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10.......................  38,000
    Markets 11-25......................  35,050
    Markets 26-50......................  23,550
    Markets 51-100.....................  13,700
    Remaining Markets..................  3,675
    Construction Permits...............  3,675
Satellite Television Stations (All       1,525
 Markets):.
Construction Permits--Satellite          960
 Television Stations.

[[Page 52441]]

 
Low Power TV, Class A TV, TV/FM          410
 Translators & Boosters (47 CFR part
 74).
Broadcast Auxiliaries (47 CFR part 74).  10
CARS (47 CFR part 78)..................  510
Cable Television Systems (per            1.02
 subscriber) (47 CFR part 76).
Interstate Telecommunication Service     .00347
 Providers (per revenue dollar).
Earth Stations (47 CFR part 25)........  275
Space Stations (per operational station  139,100
 in geostationary orbit) (47 CFR part
 25) also includes DBS Service (per
 operational station) (47 CFR part 100).
Space Stations (per operational system   149,875
 in non-geostationary orbit) (47 CFR
 part 25).
International Bearer Circuits--          .27
 Terrestrial/Satellites (per 64KB
 circuit).
International Bearer Circuits--          See Table Below
 Submarine Cable.
------------------------------------------------------------------------
\1\ The allocation percentages represent FTE data as of September 30,
  2012, and include the proposal to use 28 Direct FTEs (rather than 119
  FTEs) for the International Bureau.


                                      FY 2013 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                FM         FM
                                                 AM Class   AM Class   AM Class   AM Class   Classes    Classes
               Population served                    A          B          C          D       A, B1 &   B, C, C0,
                                                                                                C3      C1 & C2
----------------------------------------------------------------------------------------------------------------
<=25,000......................................       $775       $645       $590       $670       $750       $925
25,001-75,000.................................      1,550      1,300        900      1,000      1,500      1,625
75,001-150,000................................      2,325      1,625      1,200      1,675      2,050      3,000
150,001-500,000...............................      3,475      2,750      1,800      2,025      3,175      3,925
500,001-1,200,000.............................      5,025      4,225      3,000      3,375      5,050      5,775
1,200,001-3,000,00............................      7,750      6,500      4,500      5,400      8,250      9,250
>3,000,000....................................      9,300      7,800      5,700      6,750     10,500     12,025
----------------------------------------------------------------------------------------------------------------


 FY 2013 Schedule of Regulatory Fees: Fee Rate Increases Capped at 7.5%
            [International Bearer Circuits--Submarine Cable]
------------------------------------------------------------------------
    Submarine cable systems
  (capacity as of December 31,     Fee amount            Address
             2012)
------------------------------------------------------------------------
< 2.5 Gbps.....................         $13,600  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
2.5 Gbps or greater, but less            27,200  FCC, International,
 than 5 Gbps.                                     P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
5 Gbps or greater, but less              54,425  FCC, International,
 than 10 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
10 Gbps or greater, but less            108,850  FCC, International,
 than 20 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
20 Gbps or greater.............         217,675  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
------------------------------------------------------------------------

Table 4--Sources of Payment Unit Estimates for FY 2013
    In order to calculate individual service fees for FY 2013, we 
adjusted FY 2012 payment units for each service to more accurately 
reflect expected FY 2013 payment liabilities. We obtained our updated 
estimates through a variety of means. For example, we used Commission 
licensee data bases, actual prior year payment records and industry and 
trade association projections when available. The databases we 
consulted include our Universal Licensing System (``ULS''), 
International Bureau Filing System (``IBFS''), Consolidated Database 
System (``CDBS'') and Cable Operations and Licensing System 
(``COALS''), as well as reports generated within the Commission such as 
the Wireline Competition Bureau's Trends in Telephone Service and the 
Wireless Telecommunications Bureau's Numbering Resource Utilization 
Forecast.
    We sought verification for these estimates from multiple sources 
and, in all cases; we compared FY 2013 estimates with actual FY 2012 
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 2013 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 2013 payment units are based on FY 2012 
actual payment units, it does not necessarily mean that our FY 2013 
projection is exactly the same number as in FY 2012. We have either 
rounded the FY 2013 number or adjusted it slightly to account for these 
variables.

[[Page 52442]]



------------------------------------------------------------------------
         Fee category              Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave,  Based on Wireless Telecommunications
 218-219 MHz, Marine (Ship &    Bureau (``WTB'') projections of new
 Coast), Aviation (Aircraft &   applications and renewals taking into
 Ground), GMRS, Amateur         consideration existing Commission
 Vanity Call Signs, Domestic    licensee data bases. Aviation (Aircraft)
 Public Fixed.                  and Marine (Ship) estimates have been
                                adjusted to take into consideration the
                                licensing of portions of these services
                                on a voluntary basis.
CMRS Cellular/Mobile Services  Based on WTB projection reports, and FY
                                12 payment data.
CMRS Messaging Services......  Based on WTB reports, and FY 12 payment
                                data.
AM/FM Radio Stations.........  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2012 payment
                                units.
UHF/VHF Television Stations..  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2012 payment
                                units.
AM/FM/TV Construction Permits  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2012 payment
                                units.
LPTV, Translators and          Based on CDBS data, adjusted for
 Boosters, Class A Television.  exemptions, and actual FY 2012 payment
                                units.
Broadcast Auxiliaries........  Based on actual FY 2012 payment units.
BRS (formerly MDS/MMDS)......  Based on WTB reports and actual FY 2012
LMDS.........................   payment units.
                               Based on WTB reports and actual FY 2012
                                payment units.
Cable Television Relay         Based on data from Media Bureau's COALS
 Service (``CARS'') Stations.   database and actual FY 2012 payment
                                units.
Cable Television System        Based on publicly available data sources
 Subscribers.                   for estimated subscriber counts and
                                actual FY 2011 payment units.
Interstate Telecommunication   Based on FCC Form 499-Q data for the four
 Service Providers.             quarters of calendar year 2012, the
                                Wireline Competition Bureau projected
                                the amount of calendar year 2012 revenue
                                that will be reported on 2013 FCC Form
                                499-A worksheets in April, 2013.
Earth Stations...............  Based on International Bureau (``IB'')
                                licensing data and actual FY 2012
                                payment units.
Space Stations (GSOs & NGSOs)  Based on IB data reports and actual FY
                                2012 payment units.
International Bearer Circuits  Based on IB reports and submissions by
                                licensees.
Submarine Cable Licenses.....  Based on IB license information.
------------------------------------------------------------------------

    29. The most significant shifts between the recalculated fees we 
adopt today and the fees that appear in Attachment B of the FY 2013 
Notice affect International Bureau licensees. The reallocation of FTEs 
from the International Bureau, combined with a 10% cap on decreases, 
would have provided licensees of Earth Stations, Geostationary Orbit 
Space Stations, Non-Geostationary Orbit Satellite Systems, and 
Submarine Cable Systems with reductions of 3.85% to 10.01% from the 
fees they paid in FY 2012.\66\ Removing the 10% cap on decreases causes 
the fees these licensees will pay in FY 2013 to increase between 2.31% 
and 4.70% over the fees they paid in FY 2012.\67\ Although at variance 
from the results we had projected, we find that these modest increases 
in the fees international service licensees will pay this year are 
unlikely to affect their ability to continue offering the services for 
which the Commission has licensed them.\68\ Moreover, we emphasize 
again that the adjustments reflected in all the fees we adopt today are 
but an initial step in the process of comprehensively reforming the way 
we assess regulatory fees, a process that we anticipate will lead to 
further significant changes in the regulatory fees Commission licensees 
will pay in FY 2014 and beyond.
---------------------------------------------------------------------------

    \66\ The specific reductions would have been 10.91% for Earth 
Stations, 10.01% for Geostationary Orbit Space Stations, Non-
Geostationary Orbit Satellite Systems, and Submarine Cable Systems, 
and 3.85% for International Bearer Circuits.
    \67\ The specific increases will be Geostationary Orbit Space 
Stations, 4.68%, Non-Geostationary Orbit Satellite Systems, 4.70%, 
International Bearer Circuits, 3.85%, and Submarine Cable Systems, 
2.31%. Fees for Earth Stations will not increase. Applying the other 
adjustments we adopt today while removing the 10% cap on decreases 
means that ITSPs' FY 2013 fees will be reduced by 7.47% instead of 
4.27%.
    \68\ The Commission's rules allow any individual licensee unable 
to pay its regulatory fees to request and obtain a waiver, 
reduction, or deferral of payment for good cause shown. See 47 CFR 
1.1166.
---------------------------------------------------------------------------

    30. The new allocations that result from the International Bureau 
FTE reassignments and the imposition of the 7.5 percent cap are as 
follows:\69\
---------------------------------------------------------------------------

    \69\ The allocations before imposition of a 7.5% cap on 
increases are 6.13%, 37.42%, 35.01%, and 21.44% respectively.

[[Page 52443]]



----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
International Bureau.....................  Formerly 6.3%...............  FY 2013 6.91%.
Media Bureau.............................  Formerly 30.2%..............  FY 2013 33.69%.
Wireline Competition Bureau..............  Formerly 46.7%..............  FY 2013 39.81%.
Wireless Telecommunications Bureau.......  Formerly 16.8%..............  FY 2013 19.59%.
----------------------------------------------------------------------------------------------------------------

C. Changes to the Fee Categories, Using Revised FTE Data

    31. As we discussed above in paragraph 18, we intend to further 
examine other possible FTE reallocations. We have concluded that the 
International Bureau is exceptional in that most of its activities 
benefit the regulatees of other bureaus and offices instead of its own 
regulatees, and none of the commenters have shown that this is the case 
to the same extent with regard to any other core bureau. If parties can 
show that other bureaus' activities directly benefit licensees of 
different bureaus as disproportionately as the International Bureau's 
activities do, or that a non-core bureau's activities benefit only 
certain bureaus or regulatees, we will consider those showings in 
setting regulatory fees in FY 2014. We will continue to examine these 
suggestions as we continue our regulatory fee reform, as well as our 
proposals that we do not reach in this Report and Order: to combine the 
ITSP and wireless categories,\70\ to use revenues in calculating all 
regulatory fees,\71\ and to include DBS providers in a new MVPD 
category.\72\ We find additional time is necessary and appropriate to 
examine these proposals under Section 9 of the Communications Act and 
analyze how these proposals account for changes in the communications 
industry and the Commission's regulatory processes and staffing.\73\
---------------------------------------------------------------------------

    \70\ ITTA supports this proposal. ITTA Comments at 3-7. Other 
commenters, however, do not. See, e.g., CTIA Comments at 6-8 & Reply 
Comments at 3; AT&T Comments at 3; CCA Comments at 3-6; Verizon 
Reply Comments at 1-2.
    \71\ ITTA supports a revenue-based assessment for wireline and 
wireless voice services. See ITTA Comments at 7-9. Fireweed supports 
a revenue-based assessment, with a discount for broadcasters. See 
Fireweed Comments at 3-6. Several commenters oppose this proposal. 
See, e.g., ACA Comments at 8-9; CTIA Comments at 8 & ex parte (7/15/
13) at 1-2; DIRECTV Comments at 18-19; EchoStar and DISH Comments at 
10-12; NASCA Comments at 13-14; NCTA Reply Comments at 5-6; SES 
Comments at 2; SIA Reply Comments at 8.
    \72\ See, e.g., AT&T Comments at 4-5; ACA Comments at 13-18 & 
Reply Comments at 1-6; NCTA Reply Comments at 2-5. DIRECTV and 
EchoStar and DISH oppose this proposal. See DIRECTV Comments at 1-
20; EchoStar and DISH Comments at 18-20 & Reply Comments at 4-6.
    \73\ See, e.g., NAB Comments at 6 (requesting that ``the 
Commission temporarily defer the implementation of the proposals set 
forth in the Notice to allow time for additional analysis.''); ACA 
Comments at 12 (``it would be prudent and fair for the Commission to 
do what it can to maintain the regulatory fee status quo until 
decisions are made on implementing the pending reforms affecting the 
fees paid by cable operators.''); ABA Reply Comments at 3 (urging 
the Commission to maintain the current allocations for FY 2013).
---------------------------------------------------------------------------

D. Other Telecommunications Regulatory Fee Issues

1. Combining UHF/VHF Television Regulatory Fees Into One Fee Category 
Effective FY 2014
    32. Regulatory fees for full-service television stations are 
calculated based on two, five-tiered market segments for Ultra High 
Frequency (UHF) and Very High Frequency (VHF) television stations. 
After the transition to digital television on June 12, 2009, we 
proposed that the Commission combine the VHF and UHF regulatory fee 
categories.\74\ In response, Fireweed argued that we should base the 
regulatory fee structure on three tiers and Sky Television, LLC, 
Spanish Broadcasting System, Inc., and Sarkes Tarzian argued that 
instead of six separate categories for both VHF and UHF we should 
combine all television stations into a single six-tiered category based 
on market size, thus eliminating any distinction between VHF and 
UHF.\75\ In its most recent comments, Sarkes Tarzian and Sky Television 
support our proposal to combine the VHF and UHF fee categories within 
the same market area into one fee category but suggests that the 
Commission implement this proposal in FY 2013 rather than FY 2014.\76\ 
In a recent Notice of Ex Parte Presentation, filed by Sarkes Tarzian 
and Sky Television on February 15, 2013, these parties argued that 
because VHF stations are less desirable than UHF stations it is unfair 
to levy higher fees on them.
---------------------------------------------------------------------------

    \74\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2010, Report and Order, 25 FCC Rcd 9278, 9285-86, at paras. 18-
20 (2010) (FY 2010 Report and Order).
    \75\ See also Notice of Ex Parte Presentation, filed by Sarkes 
Tarzian and Sky Television (Feb. 15, 2013) (arguing that VHF 
stations are less desirable than UHF stations and it was unfair to 
have higher fees for such stations; instead the fee categories 
should be combined).
    \76\ See Sarkes Tarzian and Sky Television Comments at 2-5.
---------------------------------------------------------------------------

    33. Historically, analog VHF channels (channels 1-13) were coveted 
for their greater prestige and larger audience, and thus the regulatory 
fees assessed on VHF stations were higher than regulatory fees assessed 
for UHF (channels 14 and above) stations in the same market area. After 
the digital conversion, it became evident that VHF channels were less 
desirable than digital UHF channels, and thus there may no longer be a 
basis in which to assess a higher regulatory fee on VHF channels. 
Therefore, in the FY 2013 NPRM we proposed to combine the VHF and UHF 
stations in the same market area into one fee category beginning in FY 
2014 and eliminate the fee disparity between VHF and UHF stations. For 
the reasons given in the FY 2013 NPRM, we adopt our proposal to combine 
UHF and VHF full service television station categories into one fee 
category.
    34. Sarkes Tarzian and Sky Television also request that the 
Commission implement this proposal in FY 2013.\77\ With respect to this 
request, we note that section 9(b)(3) directs the Commission to add, 
delete, or reclassify services in the fee schedule to reflect 
additions, deletions, or changes in the nature of its services ``as a 
consequence of Commission rulemaking proceedings or changes in law.'' 
\78\ Combining UHF and VHF full-service television stations into one 
fee category constitutes a reclassification of services in the 
regulatory fee schedule as defined in section 9(b)(3) of the Act,\79\ 
and pursuant to section 9(b)(4)(B) must be submitted to Congress at 
least 90 days before it becomes effective.\80\ The Commission will not 
have sufficient time to implement this change before September 30, 2013 
and therefore we will implement this change in FY 2014.
---------------------------------------------------------------------------

    \77\ See Sarkes Tarzian and Sky Television Comments at 2-5.
    \78\ 47 U.S.C. 159(b)(3).
    \79\ 47 U.S.C. 159(b)(3).
    \80\ 47 U.S.C. 159(b)(4)(B).
---------------------------------------------------------------------------

2. Including Internet Protocol TV in Cable Television Systems Category, 
for FY 2014
    35. IPTV is digital television delivered through a high speed 
Internet connection, instead of by the traditional cable method. IPTV 
service generally is offered bundled with the customer's Internet and 
telephone or VoIP services. In the FY 2008 Report and Order we first 
sought comment on whether this service should be subject to regulatory 
fees.\81\ In the FY 2013 NPRM, we

[[Page 52444]]

observed that by assessing regulatory fees on cable television systems, 
but not on IPTV, we may place cable providers at a competitive 
disadvantage.\82\ Commenters addressing this issue agree that we should 
assess regulatory fees on that service.\83\ IPTV and cable service 
providers benefit from Media Bureau regulation as MVPDs.\84\ We agree 
that IPTV providers should be subject to the same regulatory fees as 
cable providers.
---------------------------------------------------------------------------

    \81\ FY 2008 FNPRM, 24 FCC Rcd at 6406-07, paras. 48-49. We 
observed that ``[f]rom a customer's perspective, there is likely not 
much difference between IPTV and other video services, such as cable 
service.'' Id.
    \82\ FY 2013 NPRM, 28 FCC Rcd at 7806, para. 37.
    \83\ See, e.g., ACA Comments at 2-9 (``The Commission is correct 
to assume that IPTV service providers should pay regulatory fees to 
support video-related activities of the Commission''); see also ACA 
Reply Comments at 1-6. But see Google Reply Comments at 2-3 (IPTV 
regulatory fees should be less than what cable operators pay because 
the Media Bureau has fewer responsibilities with regard to IPTV 
providers than with cable operators). While we agree that the 
services are not identical, and we are not categorizing IPTV as a 
cable television service, we are not persuaded that the relatively 
small difference from a regulatory perspective described by Google 
would justify a different regulatory fee methodology and rate.
    \84\ Some IPTV providers consider the service a ``cable 
service'' and currently pay the same regulatory fees as cable 
providers; others do not. ACA Comments at 7-8. MVPD, defined in 
section 76.1000(e) of our rules, is ``an entity engaged in the 
business of making available for purchase, by subscribers or 
customers, multiple channels of video programming.'' 47 CFR 
76.1000(e).
---------------------------------------------------------------------------

    36. We intend to revisit the issue of whether DBS providers should 
be included in this category; we are not including such additional 
services at this time.\85\ Therefore, we adopt the proposal in the FY 
2013 NPRM and broaden the cable television systems category to include 
IPTV in the new category: ``cable television systems and Internet 
Protocol TV service providers.'' This will continue to be calculated on 
a per subscriber basis. In this new category we assess regulatory fees 
on IPTV providers in the same manner as we assess fees on cable 
television providers; we are not stating that IPTV providers are cable 
television providers. As this is a ``permitted amendment,'' it will go 
into effect for FY 2014.\86\
---------------------------------------------------------------------------

    \85\ AT&T Comments at 4-5 (recommending a single MVPD fee 
category that would include all MVPDs); NCTA Reply Comments at 2-5 
(proposes including all MVPDs); ACA Comments at 13-18 (same); 
DIRECTV Comments at 1-20 & Reply Comments at 2-10 (opposing 
including DBS in a MVPD category); EchoStar and DISH Comments at 18-
20 & Reply Comments at 4-6 (same). This Report and Order does not 
adopt a MVPD fee category.
    \86\ 47 U.S.C. 159(b)(3).
---------------------------------------------------------------------------

3. Regulatory Fee Obligations for Digital Low Power, Class A, and TV 
Translators/Booster
    37. The digital transition to full-service television stations was 
completed on June 12, 2009, but the digital transition for Low Power, 
Class A, and TV Translators/Boosters still remains voluntary with a 
transition date of September 1, 2015. In the context of regulatory 
fees, we have historically considered the digital transition only with 
respect to regulatory fees applicable to full-service television 
stations, and not to Low Power, Class A, and TV Translators/Boosters. 
Because the digital transition for these services is still voluntary, 
some of these facilities may transition from analog to digital service 
more rapidly than others. 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. Therefore, for regulatory fee purposes, we will assess 
a fee for each facility operating either in an analog or digital mode. 
In instances in which a licensee is simulcasting in both analog and 
digital modes, a single regulatory fee will be assessed for the analog 
facility and its corresponding digital component, but not for both 
facilities. As greater numbers of facilities convert to digital mode, 
the Commission will provide revised instructions on how regulatory fees 
will be assessed.
4. Commercial Mobile Radio Service (CMRS) Messaging
    38. CMRS Messaging Service, which replaced the CMRS One-Way Paging 
fee category in 1997, includes all narrowband services.\87\ Initially, 
the Commission froze the regulatory fee for this fee category at the FY 
2002 level to provide relief to the paging industry by setting an 
applicable rate of $0.08 per subscriber beginning in FY 2003.\88\ At 
that time we noted that CMRS Messaging units had significantly declined 
from 40.8 million in FY 1997 to 19.7 million in FY 2003--a decline of 
51.7 percent.\89\ Commenters argued that this decline in subscribership 
was not just a temporary phenomenon, but a lasting one. Commenters 
further argued that, because the messaging industry is spectrum-
limited, geographically localized, and very cost sensitive, it is 
difficult for this industry to pass on increases in costs to its 
subscribers.\90\ In response to our FY 2013 NPRM, one commenter 
supported maintaining the CMRS Messaging fee rate at $.08 per 
subscriber, but urged the Commission to adopt an even lower fee rate in 
the future, suggesting a ratio of 1 to 7 (messaging/paging monthly ARPU 
to wireless telephony ARPU) to calculate the messaging regulatory fee 
rate.\91\
---------------------------------------------------------------------------

    \87\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 1997, Report and Order, 12 FCC Rcd 17161, 17184-85, para. 60 
(1997) (FY 1997 Report and Order).
    \88\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2003, Report and Order, 18 FCC Rcd 15985, 15992, para. 22 
(2003) (FY 2003 Report and Order).
    \89\ FY 2003 Report and Order, 18 FCC Rcd at 15992, para. 21. 
The subscriber base in the paging industry declined 92 percent from 
40.8 million to 3.2 million between FY 1997 and FY 2012, according 
to FY 2012 collection data as of Sept. 30, 2012.
    \90\ FY 2003 Report and Order, 18 FCC Rcd at 15992, para. 22.
    \91\ See CMA Comments at 1, 3, and 5.
---------------------------------------------------------------------------

    39. The Commission has frozen the CMRS Messaging fee rate since FY 
2003. By doing so, the Commission has provided the CMRS Messaging 
industry some level of regulatory fee stability. As our earlier 
discussion on FTE allocation has indicated, the fee burden of 
regulatory fee categories is determined by FTEs, and not by comparative 
ARPUs or other forms of measurement. By maintaining the CMRS Messaging 
rate at $.08 per subscriber for a decade, the CMRS Messaging industry 
has in effect been paying a fee rate of .07 percent (.0007) of all 
fees, compared to its allocated share of .32 percent (.0032).\92\ As in 
previous years, the Commission in FY 2013 will maintain the CMRS 
Messaging fee rate at $.08 per subscriber. The Commission, however, 
will continue to examine the impact of regulatory fees on CMRS 
Messaging and similar declining industries.
---------------------------------------------------------------------------

    \92\ If the fee rate were not frozen at $.08 per subscriber, the 
actual fee rate for the CMRS Messaging fee category would have been 
$.39 per subscriber, thereby raising $1,170,000 in projected 
revenues (.34% of all fees) compared with $240,000 in projected 
revenues (.07%).
---------------------------------------------------------------------------

E. Excess Fees

    40. Commenters recommend that the Commission obtain Congressional 
approval to refund excess regulatory fees or alternatively apply the 
excess fees to FY 2014 collections.\93\ The Commission's annual 
appropriations, since 2008, have prohibited the use of any excess fees 
from current or previous fees without an appropriation from Congress. 
Should Congress decide to examine this issue or any other issues 
regarding regulatory fees, the Commission is committed to providing 
whatever information they request.\94\
---------------------------------------------------------------------------

    \93\ See, e.g., USTA Comments at 8-9; Verizon Reply Comments at 
1-2; SIA Reply Comments at 10.
    \94\ See GAO Report at pp. 44-45.
---------------------------------------------------------------------------

F. Fee Decisions and Waiver Policies

    41. The Commission received two unsolicited comments regarding its 
fee decisions and waiver policies. MMTC urges the Commission ``to waive 
application fees for small businesses and nonprofits and to provide

[[Page 52445]]

regulatory fee relief for certain broadcast entities.'' \95\ In 
addition, MMTC explains that the Commission has the authority to 
``waive, reduce, or defer payment of a fee in any specific instance of 
good cause shown, where such action would promote the public 
interest.'' \96\ MMTC contends that the Commission should adopt a 
rebuttable presumption that a certain class of entities need, and are 
eligible, for regulatory fee relief.\97\ MMTC also urges the Commission 
to exercise its statutory authority and grant a one-year waiver of 
certain application fees.\98\
---------------------------------------------------------------------------

    \95\ MMTC Comments at 1.
    \96\ MMTC Comments at 4.
    \97\ MMTC Comments at 4-5.
    \98\ MMTC Comments at 5.
---------------------------------------------------------------------------

    42. The issues raised by MMTC relating to application fees are 
beyond the scope of this proceeding. We emphasize that all waivers, 
including a reduction and deferral of fees, are considered on a case-
by-case basis under the statute. These include instances in which 
financial hardship is presented, as well as instances in which the 
public interest will be promoted. The Commission can exercise some 
discretion in providing relief on waivers, but this relief can only be 
provided within the confines of the statutory law that governs that 
particular waiver.
    43. The Commission also received a comment requesting the 
Commission publish redacted financial data from fee decisions.\99\ 
Fireweed also contends that the Commission has hidden decisions from 
public view.\100\ The Commission intends to consider this issue as it 
reviews its current policy of publishing fee decisions. However, the 
publishing of fee decisions, including redacted financial data, must 
adhere to the Commission's privacy rules and guidelines.
---------------------------------------------------------------------------

    \99\ Fireweed Comments at 6.
    \100\ Fireweed Comments at 7.
---------------------------------------------------------------------------

    44. Fireweed also contends that we should not require parties to 
support a waiver request with tax returns.\101\ Fireweed has not, 
however, suggested an alternative method to substantiate financial 
hardship. Tax returns or audited financial statements are generally 
used by parties before the Commission to demonstrate financial 
hardship.
---------------------------------------------------------------------------

    \101\ Fireweed Comments at 8.
---------------------------------------------------------------------------

G. Administrative Issues

    45. In FY 2009, the Commission implemented several procedural 
changes that simplified the payment and reconciliation processes for FY 
2009 regulatory fees. The Commission's current regulatory fee 
collection procedures can be found in the Report and Order on 
Assessment and Collection of Regulatory Fees for FY 2012.\102\ In FY 
2013, the Commission will continue to promote greater use of technology 
(and less use of paper) in improving our regulatory fee notification 
and collection process. These changes and their effective dates are 
discussed in more detail below. Specifically, beginning on October 1, 
2013, in FY 2014, we will no longer accept checks and hardcopy Form 159 
remittance advice forms to pay regulatory fee obligations. In FY 2014, 
we will also transfer electronic invoicing and receivables collection 
to the Treasury. Finally, in FY 2014, we will no longer mail out 
initial CMRS assessments, and will instead require licensees to log 
into the Commission's Web site to view and revise their subscriber 
counts.
---------------------------------------------------------------------------

    \102\ See Assessment and Collection of Regulatory Fees for 
Fiscal Year 2012, Report and Order, 27 FCC Rcd 8390, 8395-97, paras. 
17-20, 24-26 (2012) (FY 2012 Report and Order).
---------------------------------------------------------------------------

1. Discontinuation of Mail Outs of Initial CMRS Assessments, FY 2014
    46. In FY 2014, as part of the Commission's effort to become more 
``paperless,'' the Commission will no longer mail out its initial CMRS 
assessments but will require licensees to log into the Commission's Web 
site to view and revise their subscriber counts. A system currently 
exists for providers to revise their CMRS subscriber counts 
electronically after the CMRS assessments are mailed, and it is 
possible that this system can be expanded to include letters that can 
be downloaded to serve as the initial CMRS assessment letter. The 
Commission will provide more details in future announcements as this 
system is modified to accommodate this task.
2. Discontinuation of Paper and Check Transactions Beginning October 1, 
2013 (FY 2014)
    47. Together with the U.S. Department of Treasury, the Commission 
is taking further steps to meet the OMB Open Government Directive.\103\ 
A component part of the Treasury's current flagship initiative pursuant 
to this Directive is moving to a paperless Treasury, which includes 
related activities in both disbursing and collecting select federal 
government payments and receipts.\104\ Going paperless is expected to 
produce cost savings, reduce errors, and improve efficiencies across 
government. Accordingly, beginning on October 1, 2013, the Commission 
will no longer accept checks (including cashier's checks) and the 
accompanying hardcopy forms (e.g., Form 159's, Form 159-B's, Form 159-
E's, Form 159-W's) for the payment of regulatory fees. This new 
paperless procedure will require that all payments be made by online 
ACH payment, online credit card, or wire transfer. Any other form of 
payment (e.g., checks) will be rejected and sent back to the payor. So 
that the Commission can associate the wire payment with the correct 
regulatory fee information, an accompanying Form 159-E should still be 
transmitted via fax for wire transfers. This change will affect all 
payments of regulatory fees made on or after October 1, 2013.\105\
---------------------------------------------------------------------------

    \103\ Office of Management and Budget (OMB) Memorandum M-10-06, 
Open Government Directive, Dec. 8, 2009; see also http://www.whitehouse.gov/the-press-office/2011/06/13/executive-order-13576-delivering-efficient-effective-and-accountable-gov.
    \104\ See U.S. Department of the Treasury, Open Government Plan 
2.1, Sept. 2012.
    \105\ Payors should note that this change will mean that to the 
extent certain entities have to date paid both regulatory fees and 
application fees at the same time via paper check, they will no 
longer be able to do so as the regulatory fees payment via paper 
check will no longer be accepted.
---------------------------------------------------------------------------

3. Transfers to Treasury, FY 2014
    48. Under section 9 of the Act, Commission rules, and the debt 
collection laws, a licensee's regulatory fee is due on the first day of 
the fiscal year and payable at a date established by our annual 
regulatory fee Report and Order. The Commission will work with Treasury 
to facilitate end-to-end billing and collections capabilities for our 
receivables in the pre-delinquency stage. Under these revised 
procedures, the Commission will begin transferring appropriate 
receivables (unpaid regulatory fees) to Treasury at the end of the 
payment period instead of waiting for a period of 180 days from the 
date of delinquency to transfer a delinquent debt to Treasury for 
further collection action.\106\ Accordingly, we anticipate that the 
transfer of FY 2013 debts to Treasury will occur much sooner than our 
current process. Regulatees, however, will not likely see any 
substantial change in the current procedures of how past due debts are 
to be paid. The Commission expects to modify its guidance and amend its 
rules accordingly.
---------------------------------------------------------------------------

    \106\ See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR 1.1917.

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

[[Page 52446]]

V. Procedural Matters

A. Assessment Notifications

1. CMRS Cellular and Mobile Services Assessments
    49. For regulatory fee collection in FY 2013, 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'').\107\ The letter will include a 
listing of the carrier's Operating Company Numbers (OCNs) upon which 
the assessment is based.\108\ The letters will not include OCNs with 
their respective assigned number counts, but rather, an aggregate total 
of assigned numbers for each carrier.
---------------------------------------------------------------------------

    \107\ See Assessment and Collection of Regulatory Fees for 
Fiscal Year 2005 and Assessment and Collection of Regulatory Fees 
for Fiscal Year 2004, MD Docket Nos. 05-59 and 04-73, Report and 
Order and Order on Reconsideration, 20 FCC Rcd 12259, 12264, paras. 
38-44 (2005).
    \108\ Id.
---------------------------------------------------------------------------

    50. 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.\109\ 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.
---------------------------------------------------------------------------

    \109\ 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.
---------------------------------------------------------------------------

    51. 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 that is 
currently in place for CMRS Wireless services (i.e., compute their 
subscriber counts as of December 31, 2012), 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.

B. Payment of Regulatory Fees

1. Lock Box Bank
    52. All lock box payments to the Commission for FY 2013 will be 
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC. 
During the fee season for collecting FY 2013 regulatory fees, 
regulatees can pay their fees by credit card through Pay.gov,\110\ by 
check, money order, or debit card,\111\ 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.
---------------------------------------------------------------------------

    \110\ 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.
    \111\ 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
    53. 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
    54. Regulatees whose total FY 2013 regulatory fee liability, 
including all categories of fees for which payment is due, is less than 
$10 are exempted from payment of FY 2013 regulatory fees.
4. Two Additional Fee Categories Will Be Established as Bills in FY 
2013
    55. Presently, the Commission establishes bills for a select group 
of regulatory fee categories: ITSPs, Geostationary (GSO) and Non-
Geostationary (NGSO) satellite space station licensees,\112\ holders of 
Cable Television Relay Service (CARS) licenses, and Earth Station 
licensees.\113\ In FY 2009, the Commission stopped sending hardcopy 
bills to licensees, and made them electronically available in Fee 
Filer, the Commission's electronic filing and payment system. During 
the FY 2013 regulatory fee collection period, the Commission will 
expand its number of billing categories to include BRS/LMDS and 
Television Stations. There will be no change in the procedures of how 
BRS/LMDS and television station licensees view and pay their regulatory 
fees. The only noticeable difference will be that a bill number will be 
associated with each record for the BRS/LMDS and television station fee 
categories. This bill number will enable the Commission to

[[Page 52447]]

determine more quickly those entities that have not paid their FY 2013 
regulatory fees. This initiative is part of the Commission's effort to 
streamline and expedite the process of regulatory fee collection and 
accounting.
---------------------------------------------------------------------------

    \112\ 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.
    \113\ A bill is considered an account receivable in the 
Commission's accounting system. Bills reflect the amount owed and 
have a payment due date of the last day of the regulatory fee 
payment window. Consequently, if a 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.
---------------------------------------------------------------------------

5. Standard Fee Calculations and Payment Dates
    56. 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, 2012 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, 2012. In 
instances where a permit or license is transferred or assigned after 
October 1, 2012, 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, 
2012. In instances where a permit or license is transferred or assigned 
after October 1, 2012, responsibility for payment rests with the holder 
of the permit or license as of the fee due date. Audio bridging service 
providers are included in this category.\114\
---------------------------------------------------------------------------

    \114\ Audio bridging services are toll teleconferencing 
services.
---------------------------------------------------------------------------

     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, 2012. The number of subscribers, units, 
or telephone numbers on December 31, 2012 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, 2012, 
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 3 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 2013.
     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, 
2012.\115\ Regulatory fees also must be paid for CARS licenses that 
were granted on or before October 1, 2012. In instances where a permit 
or license is transferred or assigned after October 1, 2012, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
---------------------------------------------------------------------------

    \115\ 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 2012, rather than on a count as of December 31, 
2012.
---------------------------------------------------------------------------

     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, 2012. In instances where a permit 
or license is transferred or assigned after October 1, 2012, 
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, 2012. In instances where a license is transferred or assigned after 
October 1, 2012, responsibility for payment rests with the holder of 
the license as of the fee due date. For regulatory fee purposes, the 
allocation in FY 2013 will remain at 87.6 percent for submarine cable 
and 12.4 percent for satellite/terrestrial facilities.
     International Services: Terrestrial and Satellite 
Services: 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, 2012 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, 2012. Whether circuits are used 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, 2012, 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 2013 will remain at 87.6 percent for 
submarine cable and 12.4 percent for satellite/terrestrial facilities.

C. Enforcement

    57. 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.\116\ Failure 
to pay regulatory fees and/or any late penalty will subject regulatees 
to sanctions, including those set forth in section 1.1910 of the 
Commission's rules \117\ and in the Debt Collection Improvement Act of 
1996 (DCIA).\118\ 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 section 1.1940(d) of 
the Commission's rules.\119\ 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.
---------------------------------------------------------------------------

    \116\ 47 U.S.C. 159(c).
    \117\ See 47 CFR 1.1910.
    \118\ 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.
    \119\ 47 CFR 1.1940(d).

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

[[Page 52448]]

    58. 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.\120\ 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).
---------------------------------------------------------------------------

    \120\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
---------------------------------------------------------------------------

    59. As a final matter, we note that providing a 30 day period after 
Federal Register publication before this Report and Order becomes 
effective as required by 5 U.S.C. 553(d) will not allow sufficient time 
for the Commission to collect the FY 2013 fees before the end of FY 
2013 on September 30, 2013. For this reason, pursuant to 5 U.S.C. 
553(d)(3) the Commission finds there is good cause to waive the 
requirements of Section 553(d), and this Report and Order will become 
effective upon publication in the Federal Register. Because payments of 
the regulatory fees will not actually be due until the middle of 
September persons affected by this Order will still have a reasonable 
period in which to prepare to make their payments and thereby comply 
with the rules established herein.

VI. Conclusion

    60. In this Report and Order we reallocate regulatory fees to more 
accurately reflect the subject areas worked on by current Commission 
FTEs for FY 2013. We consider this our first step toward reforming the 
regulatory fee process and will continue to refine our regulatory fee 
methodology to achieve equitable results that are consistent with 
section 9 of the Act.

Table 5--Factors, Measurements, and Calculations That Determines 
Station Signal Contours and Associated Population Coverages

AM Stations

    61. 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, phase, 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 augmented 
standard if pertinent, horizontal plane radiation pattern was 
calculated using techniques and methods specified in sections 73.150 
and 73.152 of the Commission's rules.\121\ 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.\122\ Using the 
calculated horizontal radiation values, and the retrieved soil 
conductivity data, the distance to the principal community (5 mV/m) 
contour was predicted for each of the 360 radials. The resulting 
distance to principal community contours were used to form a 
geographical polygon. Population counting was accomplished by 
determining which 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.
---------------------------------------------------------------------------

    \121\ 47 CFR 73.150 and 73.152.
    \122\ See Map of Estimated Effective Ground Conductivity in the 
United States, 47 CFR 73.190 Figure R3.
---------------------------------------------------------------------------

FM Stations

    62. 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.\123\ 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.
---------------------------------------------------------------------------

    \123\ 47 CFR 73.313
---------------------------------------------------------------------------

Table 6--FY 2012 Schedule of Regulatory Fees

    The first eleven regulatory fee categories in the table 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 regulatory fee (U.S.
              Fee category                             $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47  35
 CFR part 90).
Microwave (per license) (47 CFR part     20
 101).
218-219 MHz (Formerly Interactive Video  70
 Data Service) (per license) (47 CFR
 part 95).
Marine (Ship) (per station) (47 CFR      10
 part 80).
Marine (Coast) (per license) (47 CFR     50
 part 80).
General Mobile Radio Service (per        5
 license) (47 CFR part 95).
Rural Radio (47 CFR part 22)             15
 (previously listed under the Land
 Mobile category).
PLMRS (Shared Use) (per license) (47     15
 CFR part 90).
Aviation (Aircraft) (per station) (47    10
 CFR part 87).
Aviation (Ground) (per license) (47 CFR  15
 part 87).
Amateur Vanity Call Signs (per call      1.50
 sign) (47 CFR part 97).
CMRS Mobile/Cellular Services (per       .17
 unit) (47 CFR parts 20, 22, 24, 27, 80
 and 90).
CMRS Messaging Services (per unit) (47   .08
 CFR parts 20, 22, 24 and 90).
Broadband Radio Service (formerly MMDS/  475
 MDS) (per license) (47 CFR part 27).
Local Multipoint Distribution Service    475
 (per call sign) (47 CFR, part 101).
AM Radio Construction Permits..........  550

[[Page 52449]]

 
FM Radio Construction Permits..........  700
TV (47 CFR part 73) VHF Commercial:
    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       1,425
 Markets).
Construction Permits--Satellite          895
 Television Stations.
Low Power TV, Class A TV, TV/FM          385
 Translators & Boosters (47 CFR part
 74).
Broadcast Auxiliaries (47 CFR part 74).  10
CARS (47 CFR part 78)..................  475
Cable Television Systems (per            .95
 subscriber) (47 CFR part 76).
Interstate Telecommunication Service     .00375
 Providers (per revenue dollar).
Earth Stations (47 CFR part 25)........  275
Space Stations (per operational station  132,875
 in geostationary orbit) (47 CFR part
 25) also includes DBS Service (per
 operational station) (47 CFR part 100).
Space Stations (per operational system   143,150
 in non-geostationary orbit) (47 CFR
 part 25).
International Bearer Circuits--          .26
 Terrestrial/Satellites (per 64KB
 circuit).
International Bearer Circuits--          See Table Below
 Submarine Cable.
------------------------------------------------------------------------


                                      FY 2012 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                FM         FM
                                                 AM Class   AM Class   AM Class   AM Class   Classes    Classes
               Population served                    A          B          C          D       A, B1 &   B, C, C0,
                                                                                                C3      C1 & C2
----------------------------------------------------------------------------------------------------------------
< = 25,000....................................       $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,
 than 5 Gbps.                                     P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
5 Gbps or greater, but less              53,200  FCC, International,
 than 10 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
10 Gbps or greater, but less            106,375  FCC, International,
 than 20 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
20 Gbps or greater.............         212,750  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
------------------------------------------------------------------------

Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\124\ an Initial Regulatory Flexibility Analysis (IRFA) 
was included in the FY 2013 NPRM. The Commission sought written public 
comment on the proposals in the FY 2013 NPRM, including comment on the 
IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms to the 
IRFA.\125\
---------------------------------------------------------------------------

    \124\ 5 U.S.C. 603. The RFA, 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).
    \125\ 5 U.S.C. 604.
---------------------------------------------------------------------------

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

    2. In this Report and Order, we conclude the Assessment and 
Collection of Regulatory Fees for Fiscal Year (FY) 2013 proceeding to 
collect $339,844,000 in regulatory fees for FY 2013, pursuant to 
Section 9 of the Communications

[[Page 52450]]

Act \126\ and the FY 2013 Continuing Appropriations Resolution.\127\ 
These regulatory fees will be due in September 2013. Under section 9 of 
the Communications Act, regulatory fees are mandated by Congress and 
collected to recover the regulatory costs associated with the 
Commission's enforcement, policy and rulemaking, user information, and 
international activities.\128\ In the FY 2013 NPRM we sought comment on 
our annual process of assessing regulatory fees to cover the 
Commission's costs to offset the Commission's FY 2013 appropriation, as 
directed by Congress. We also sought comment in the FY 2013 NPRM on 
reforming and revising our regulatory fee schedule for FY 2013 and 
beyond to take into account changes in the communications industry and 
changes in the Commission's regulatory processes and staffing in recent 
years.
---------------------------------------------------------------------------

    \126\ 47 U.S.C. 159(a).
    \127\ In FY 2013, the Consolidated and Further Continuing 
Appropriations Act, Public Law 113-6 (2013) at Division F authorizes 
the Commission to collect offsetting regulatory fees at the level 
provided to the Commission's FY 2012 appropriation of $339,844.00. 
See Financial Services and General Government Appropriations Act, 
2012, Division C of Public Law 112-74, 125 Stat. 108-9 (2011).
    \128\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    3. The FY 2013 NPRM sought comment on, among other things, 
reallocating: (1) Direct FTEs \129\ currently allocated to the 
Interstate Telecommunications Service Providers (ITSPs) fee category 
and other fee categories to reflect current workloads devoted to these 
subject areas; and (2) FTEs in the International Bureau to more 
accurately reflect the Commission's regulation and oversight of the 
International Bureau regulatees, because many of the International 
Bureau FTEs devote their time on issues international in nature, but 
not necessarily pertaining to the International Bureau regulatees. The 
Report and Order adopts these proposals, together with a limit on any 
increase in assessments to 7.5 percent to avoid fee shock to industry 
segments paying higher regulatory fees as a result of reallocation. In 
addition, for FY 2014, the Report and Order adds Internet Protocol TV 
(IPTV) to the cable television category because by assessing regulatory 
fees on cable television systems but not on IPTV, we may place cable 
providers at a competitive disadvantage. The Report and Order also 
combines UHF and VHF fee categories, also for FY 2014, because after 
the digital conversion there was no longer a basis in which to assess a 
higher regulatory fee on VHF channels.
---------------------------------------------------------------------------

    \129\ One FTE, typically called a ``Full Time Equivalent,'' is a 
unit of measure equal to the work performed annually by a full time 
person (working a 40 hour workweek for a full year) assigned to the 
particular job, and subject to agency personnel staffing limitations 
established by the U.S. Office of Management and Budget. Any 
reference to FTE or ``Full Time Employee'' used herein refers to 
such Full Time Equivalent.
---------------------------------------------------------------------------

    4. The Report and Order also clarifies that licensees of Digital 
Low Power, Class A, and TV Translators/Boosters should pay only one 
regulatory fee on their analog or digital station, but not both. During 
the transition from analog to digital, 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. Therefore, 
for regulatory fee purposes, the Commission will assess a fee for each 
facility operating either in an analog or digital mode. In instances in 
which a licensee is simulcasting in both analog and digital modes, a 
single regulatory fee will be assessed for the analog facility and its 
corresponding digital component, but not for both facilities. In 
addition, the Report and Order announces that effective in FY 2014 all 
regulatory fee payments must be made electronically. The Report and 
Order also states that beginning in FY 2014 the Commission will no 
longer mail out initial regulatory fee assessments to CMRS licensees. 
Finally, the Commission will refer to the Department of the Treasury 
end-to-end billing and collection beginning in FY 2014.

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

    5. Fireweed Communications and Jeremy Lansman filed joint comments 
to the IRFA. They contend that the proposals in the FY 2013 NPRM 
greatly increase the reporting burden on small broadcasting entities 
requesting a fee waiver.\130\ They also contend that the IRFA does not 
describe significant alternatives to the proposed rules or exemptions 
for small entities.\131\ The Schedule of Regulatory Fees to be paid by 
radio and television broadcasters, which appears at 47 CFR 1153, takes 
into account the size of the market and/or size of the population 
served by the various classes of television and radio stations. Thus, 
consideration for smaller stations is already built in to the 
Commission's regulatory fee structure. Any station experiencing 
financial hardship from the fee increase adopted today can file for a 
waiver pursuant to 47 CFR 1.116. This Report and Order makes no change 
in the fee waiver procedure for any entities seeking a waiver. We have 
not proposed any changes in our regulatory fee process for small 
entities. We have not increased the reporting burden on small entities 
in this proceeding. These commenters appear to be seeking a change in 
the waiver process, which is outside the scope of this proceeding.
---------------------------------------------------------------------------

    \130\ Comments of Fireweed Communications and Jeremy Landsman at 
2.
    \131\ Id.
---------------------------------------------------------------------------

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

    6. 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.\132\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \133\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\134\ 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.\135\ Nationwide, there are a total of 
approximately 27.9 million small businesses, according to the SBA.\136\
---------------------------------------------------------------------------

    \132\ 5 U.S.C. 603(b)(3).
    \133\ 5 U.S.C. 601(6).
    \134\ 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.''
    \135\ 15 U.S.C. 632.
    \136\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' http://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf.
---------------------------------------------------------------------------

    8. Wired Telecommunications Carriers. The SBA has developed a small 
business size standard for Wired Telecommunications Carriers, which 
consists of all such companies having 1,500 or fewer employees. Census 
data for 2007 shows that there were 31,996 establishments that operated 
that year. Of those 31,996, 1,818 operated with more than 100 
employees, and 30,178 operated with fewer than 100 employees.\137\ 
Thus, under this size standard, the majority of firms can be considered 
small.
---------------------------------------------------------------------------

    \137\ See id.
---------------------------------------------------------------------------

    9. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA

[[Page 52451]]

has developed a size standard for small businesses specifically 
applicable to local exchange services. The closest applicable size 
standard under SBA rules is for Wired Telecommunications Carriers. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees.\138\ According to Commission data, census data for 
2007 shows that there were 31,996 establishments that operated that 
year. Of those 31,996, 1,818 operated with more than 100 employees, and 
30,178 operated with fewer than 100 employees.\139\ 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 
FY 2013 NPRM.
---------------------------------------------------------------------------

    \138\ 13 CFR 121.201, NAICS code 517110.
    \139\ See id.
---------------------------------------------------------------------------

    10. Incumbent LECs. Neither the Commission nor the SBA has 
developed a small business size standard specifically for incumbent 
local exchange services. The closest applicable 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.\140\ According to Commission data, 1,307 carriers reported 
that they were incumbent local exchange service providers.\141\ Of 
these 1,307 carriers, an estimated 1,006 have 1,500 or fewer employees 
and 301 have more than 1,500 employees.\142\ Consequently, the 
Commission estimates that most providers of incumbent local exchange 
service are small businesses that may be affected by the rules and 
policies proposed in the FY 2013 NPRM.
---------------------------------------------------------------------------

    \140\ 13 CFR 121.201, NAICS code 517110.
    \141\ 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).
    \142\ Id.
---------------------------------------------------------------------------

    11. 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.\143\ 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.\144\ Of 
these 1,442 carriers, an estimated 1,256 have 1,500 or fewer employees 
and 186 have more than 1,500 employees.\145\ 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.\146\ In addition, 72 
carriers have reported that they are Other Local Service 
Providers.\147\ Of the 72, seventy have 1,500 or fewer employees and 
two have more than 1,500 employees.\148\ 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 proposals in this FY 2013 NPRM.
---------------------------------------------------------------------------

    \143\ 13 CFR 121.201, NAICS code 517110.
    \144\ See Trends in Telephone Service, at tbl. 5.3.
    \145\ Id.
    \146\ Id.
    \147\ Id.
    \148\ Id.
---------------------------------------------------------------------------

    12. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a small business size standard specifically 
applicable to interexchange services. The applicable size standard 
under SBA rules is for the Wired Telecommunications Carriers. Under 
that size standard, such a business is small if it has 1,500 or fewer 
employees.\149\ According to Commission data, 359 companies reported 
that their primary telecommunications service activity was the 
provision of interexchange services.\150\ Of these 359 companies, an 
estimated 317 have 1,500 or fewer employees and 42 have more than 1,500 
employees.\151\ Consequently, the Commission estimates that the 
majority of interexchange service providers are small entities that may 
be affected by rules adopted pursuant to the FY 2013 NPRM.
---------------------------------------------------------------------------

    \149\ 13 CFR 121.201, NAICS code 517110.
    \150\ See Trends in Telephone Service, at tbl. 5.3.
    \151\ Id.
---------------------------------------------------------------------------

    13. 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.\152\ Census data for 2007 show that 1,716 establishments 
provided resale services during that year. Of that number, 1,674 
operated with fewer than 99 employees and 42 operated with more than 
100 employees.\153\ 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.\154\ Of these, all 193 have 1,500 or fewer 
employees and none have more than 1,500 employees.\155\ 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 FY 2013 NPRM.
---------------------------------------------------------------------------

    \152\ 13 CFR 121.201, NAICS code 517911.
    \153\ http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ2&prodType=table.
    \154\ See Trends in Telephone Service, at tbl. 5.3.
    \155\ Id.
---------------------------------------------------------------------------

    14. 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.\156\ Census data for 2007 show that 1,716 establishments 
provided resale services during that year. Of that number, 1,674 
operated with fewer than 99 employees and 42 operated with more than 
100 employees.\157\ 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.\158\ Of these, an estimated 211 have 1,500 or fewer employees 
and two have more than 1,500 employees.\159\ Consequently, the 
Commission estimates that the majority of local resellers are small 
entities that may be affected by rules adopted pursuant to the 
proposals in this FY 2013 NPRM.
---------------------------------------------------------------------------

    \156\ 13 CFR 121.201, NAICS code 517911.
    \157\ http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ2&prodType=table.
    \158\ See Trends in Telephone Service, at tbl. 5.3.
    \159\ Id.
---------------------------------------------------------------------------

    15. 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.\160\ Census data for 2007 show that 1,716 establishments 
provided resale services during that year. Of that number, 1,674 
operated with fewer than 99 employees and 42 operated with more than 
100

[[Page 52452]]

employees.\161\ 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, 881 carriers 
have reported that they are engaged in the provision of toll resale 
services.\162\ Of these, an estimated 857 have 1,500 or fewer employees 
and 24 have more than 1,500 employees.\163\ Consequently, the 
Commission estimates that the majority of toll resellers are small 
entities that may be affected by our proposals in the FY 2013 NPRM.
---------------------------------------------------------------------------

    \160\ 13 CFR 121.201, NAICS code 517911.
    \161\ http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ2&prodType=table.
    \162\ Trends in Telephone Service, at tbl. 5.3.
    \163\ Id.
---------------------------------------------------------------------------

    16. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a size standard for small businesses specifically applicable 
to Other Toll Carriers. This category includes toll carriers that do 
not fall within the categories of interexchange carriers, operator 
service providers, prepaid calling card providers, satellite service 
carriers, or toll resellers. The closest applicable size standard under 
SBA rules is for Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer 
employees.\164\ Census data for 2007 shows that there were 31,996 
establishments that operated that year. Of those 31,996, 1,818 operated 
with more than 100 employees, and 30,178 operated with fewer than 100 
employees.\165\ Thus, under this category and the associated small 
business size standard, the majority of Other Toll Carriers can be 
considered small. According to Commission data, 284 companies reported 
that their primary telecommunications service activity was the 
provision of other toll carriage.\166\ Of these, an estimated 279 have 
1,500 or fewer employees and five have more than 1,500 employees.\167\ 
Consequently, the Commission estimates that most Other Toll Carriers 
are small entities that may be affected by the rules and policies 
adopted pursuant to the FY 2013 NPRM.
---------------------------------------------------------------------------

    \164\ 13 CFR 121.201, NAICS code 517110.
    \165\ Id.
    \166\ Trends in Telephone Service, at tbl. 5.3.
    \167\ Id.
---------------------------------------------------------------------------

    17. Wireless Telecommunications Carriers (except Satellite). Since 
2007, the SBA has recognized wireless firms within this new, broad, 
economic census category.\168\ Prior to that time, such firms were 
within the now-superseded categories of Paging and Cellular and Other 
Wireless Telecommunications.\169\ Under the present and prior 
categories, the SBA has deemed a wireless business to be small if it 
has 1,500 or fewer employees.\170\ For this category, census data for 
2007 show that there were 11,163 establishments that operated for the 
entire year.\171\ Of this total, 10,791 establishments had employment 
of 999 or fewer employees and 372 had employment of 1000 employees or 
more.\172\ Thus, under this category and the associated small business 
size standard, the Commission estimates that the majority of wireless 
telecommunications carriers (except satellite) are small entities that 
may be affected by our proposed action.
---------------------------------------------------------------------------

    \168\ 13 CFR 121.201, NAICS code 517210.
    \169\ U.S. Census Bureau, 2002 NAICS Definitions, ``517211 
Paging,'' available at http://www.census.gov/cgibin/sssd/naics/naicsrch?code=517211&search=2002%20NAICS%20Search; U.S. Census 
Bureau, 2002 NAICS Definitions, ``517212 Cellular and Other Wireless 
Telecommunications,'' available at http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517212&search=2002%20NAICS%20Search.
    \170\ 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).
    \171\ 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).
    \172\ 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.''
---------------------------------------------------------------------------

    18. 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.\173\ Of these, an 
estimated 261 have 1,500 or fewer employees and 152 have more than 
1,500 employees.\174\ 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.
---------------------------------------------------------------------------

    \173\ Trends in Telephone Service, at tbl. 5.3.
    \174\ Id.
---------------------------------------------------------------------------

    19. Cable Television and other Program Distribution. 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.'' \175\ The SBA has developed a small 
business size standard for this category, which is: all such firms 
having 1,500 or fewer employees.\176\ Census data for 2007 shows that 
there were 31,996 establishments that operated that year. Of those 
31,996, 1,818 had more than 100 employees, and 30,178 operated with 
fewer than 100 employees. Thus under this size standard, the majority 
of firms offering cable and other program distribution services can be 
considered small and may be affected by rules adopted pursuant to the 
FY 2013 NPRM.
---------------------------------------------------------------------------

    \175\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' (partial definition), available at 
http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517110&search=2007%20NAICS%20Search.
    \176\ 13 CFR 121.201, NAICS code 517110.
---------------------------------------------------------------------------

    20. Cable Companies and Systems. The Commission has 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.\177\ Industry 
data indicate that, of 1,076 cable operators nationwide, all but eleven 
are small under this size standard.\178\ In addition, under the 
Commission's rules, a ``small system'' is a cable system serving 15,000 
or fewer subscribers.\179\ 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.\180\ Thus, under 
this second size standard, most cable systems are small and may be 
affected by rules adopted pursuant to the FY 2013 NPRM.
---------------------------------------------------------------------------

    \177\ See 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. See Implementation of Sections 
of the 1992 Cable Television Consumer Protection and Competition 
Act: Rate Regulation, MM Docket Nos. 92-266, 93-215, Sixth Report 
and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393, 
7408, para. 28 (1995).
    \178\ 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.
    \179\ See 47 CFR 76.901(c).
    \180\ WARREN COMMUNICATIONS NEWS, TELEVISION & CABLE FACTBOOK 
2006, ``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.
---------------------------------------------------------------------------

    21. All Other Telecommunications. The Census Bureau defines this 
industry as including ``establishments primarily engaged in providing 
specialized

[[Page 52453]]

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.'' \181\ The SBA has 
developed a small business size standard for this category; that size 
standard is $30.0 million or less in average annual receipts.\182\ 
According to Census Bureau data for 2007, there were 2,623 firms in 
this category that operated for the entire year.\183\ Of these, 2478 
establishments had annual receipts of under $10 million and 145 
establishments had annual receipts of $10 million or more.\184\ 
Consequently, we estimate that the majority of these firms are small 
entities that may be affected by our action. In addition, some small 
businesses whose primary line of business does not involve provision of 
communications services hold FCC licenses or other authorizations for 
purposes incidental to their primary business. We do not have a 
reliable estimate of how many of these entities are small businesses.
---------------------------------------------------------------------------

    \181\ U.S. Census Bureau, ``2007 NAICS Definitions: 517919 All 
Other Telecommunications,'' available at http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=517919&search=2007%20NAICS%20Search.
    \182\ 13 CFR 121.201, NAICS code 517919.
    \183\ U.S. Census Bureau, 2007 Economic Census, Subject Series: 
Information, Table 4, ``Establishment and Firm Size: Receipts Size 
of Firms for the United States: 2007 NAICS Code 517919'' (issued 
Nov. 2010).
    \184\ Id.
---------------------------------------------------------------------------

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

    22. This Report and Order does not adopt any new reporting, 
recordkeeping, or other compliance requirements.

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

    23. 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.\185\
---------------------------------------------------------------------------

    \185\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

    24. This Report and Order does not adopt any new reporting 
requirements. Therefore no adverse economic impact on small entities 
will be sustained based on reporting requirements. There may be a 
regulatory fee increase on small entities, in some cases and in some 
industries, but if so it would be specifically in furtherance of the 
reform measures proposed in the Notice to better align regulatory fees 
with Commission FTEs in core bureaus, as required under section 9 of 
the Act. We are mitigating fee increases to small entities, and other 
entities, by, for example, limiting or capping the annual increase in 
regulatory fees to 7.5 percent. Absent a cap, the cable fee would 
increase approximately an additional 15 percent. In keeping with the 
requirements of the Regulatory Flexibility Act, in paragraphs 10 to 28 
of this Report and Order, we have considered certain alternative means 
of mitigating the effects of fee increases to a particular industry 
segment. In addition, the Commission's rules provide a process by which 
regulatory fee payors may seek waivers or other relief on the basis of 
financial hardship. 47 CFR 1.1166

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    26. None.

VII. Ordering Clauses

    63. 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.
    64. It is further ordered that, as provided in paragraph 59, this 
Report and Order shall be effective upon publication in the Federal 
Register.
    65. 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, to the Chief Counsel for Advocacy of the U.S. 
Small Business Administration.

List of Subjects in 47 CFR Part 1

    Practice and procedure.

Federal Communications Commission.
Gloria J. Miles,
Federal Register Liaison.

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, and 310. Cable Landing License Act of 
1921, 47 U.S.C. 35-39, and the Middle Class Tax Relief and Job 
Creation Act of 2012, Public Law 112-96.


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


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

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

[[Page 52454]]

 
    (c) Renewal Only (FCC 601               40.00  FCC, P.O. Box 979097,
     & 159).                                        St. Louis, MO 63197-
                                                    9000.
    (d) Renewal Only                        40.00  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                 20.00  FCC, P.O. Box 979097,
     601 & 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                 75.00  FCC, P.O. Box 979097,
     601 & 159).                                    St. Louis, MO 63197-
                                                    9000.
    (b) New, Renew/Mod                      75.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                       St. Louis, MO 63197-
     601 & 159).                                    9000.
    (c) Renewal Only (FCC 601               75.00  FCC, P.O. Box 979097,
     & 159).                                        St. Louis, MO 63197-
                                                    9000.
    (d) Renewal Only                        75.00  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                 15.00  FCC, P.O. Box 979097,
     601 & 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                  5.00  FCC, P.O. Box 979097,
     605 & 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/                         St. Louis, MO, 63197-
     Mod (Electronic Filing)                        9000
     (FCC 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                55.00  FCC, P.O. Box 979097,
     601 & 159).                                    St. Louis, MO 63197-
                                                    9000.
    (b) New, Renewal/Mod                    55.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                       St. Louis, MO 63197-
     601 & 159).                                    9000.
    (c) Renewal Only (FCC 601               55.00  FCC, P.O. Box 979097,
     & 159).                                        St. Louis, MO 63197-
                                                    9000.
    (d) Renewal Only                        55.00  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.
    (d) Renewal Only                        15.00  FCC, P.O. Box 979097,
     (Electronic Only) (FCC                         St. Louis, MO 63197-
     601 & 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                 10.00  FCC, P.O. Box 979097,
     605 & 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                1.61  FCC, P.O. Box 979097,
     605 & 159).                                    St. Louis, MO 63197-
                                                    9000.
    (b) Initial or Renew                     1.61  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                       St. Louis, MO 63197-
     605 & 159).                                    9000.
6. CMRS Cellular/Mobile                   .18 \2\  FCC, P.O. Box 979084,
 Services (per unit)                                St. Louis, MO 63197-
                                                    9000.
    (FCC 159)................
7. CMRS Messaging Services
 (per unit)
    (FCC 159)................             .08 \3\  FCC, P.O. Box 979084,
                                                    St. Louis, MO 63197-
                                                    9000.
8. Broadband Radio Service
    (formerly MMDS and MDS)..                 510  FCC, P.O. Box 979084,
                                                    St. Louis, MO 63197-
                                                    9000.
9. Local Multipoint                           510  FCC, P.O. Box 979084,
 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 Sec.   1.1102 of this
  chapter.
\2\ These are standard fees that are to be paid in accordance with Sec.
   1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with Sec.
   1.1157(b) of this chapter.


[[Page 52455]]

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.

------------------------------------------------------------------------
  Radio [AM and FM] (47 CFR
           part 73)                Fee amount             Address
------------------------------------------------------------------------
1. AM Class A
    <=25,000 population......                $775  FCC, Radio, P.O. Box
                                                    979084, St. Louis,
                                                    MO 63197-9000.
    25,001-75,000 population.               1,550
    75,001-150,000 population               2,325
    150,001-500,000                         3,475
     population.
    500,001-1,200,000                       5,025
     population.
    1,200,001-3,000,000                     7,750
     population.
    >3,000,000 population....               9,300
2. AM Class B
    <=25,000 population......                 645  FCC, Radio, P.O. Box
                                                    979084, St. Louis,
                                                    MO 63197-9000.
    25,001-75,000 population.               1,300
    75,001-150,000 population               1,625
    150,001-500,000                         2,750
     population.
    500,001-1,200,000                       4,225
     population.
    1,200,001-3,000,000                     6,500
     population.
    >3,000,000 population....               7,800
3. AM Class C
    <=25,000 population......                 590  FCC, Radio, P.O. Box
                                                    979084, St. Louis,
                                                    MO 63197-9000.
    25,001-75,000 population.                 900
    75,001-150,000 population               1,200
    150,001-500,000                         1,800
     population.
    500,001-1,200,000                       3,000
     population.
    1,200,001-3,000,000                     4,500
     population.
    >3,000,000 population....               5,700
4. AM Class D
    <=25,000 population......                 670  FCC, Radio, P.O. Box
                                                    979084, St. Louis,
                                                    MO 63197-9000.
    25,001-75,000 population.               1,000
    75,001-150,000 population               1,675
    150,001-500,000                         2,025
     population.
    500,001-1,200,000                       3,375
     population.
    1,200,001-3,000,000                     5,400
     population.
    >3,000,000 population....               6,750
5. AM Construction Permit....                 590  FCC, Radio, P.O. Box
                                                    979084, St. Louis,
                                                    MO 63197-9000.
6. FM Classes A, B1 and C3
    <=25,000 population......                 750  FCC, Radio, P.O. Box
                                                    979084, St. Louis,
                                                    MO 63197-9000.
    25,001-75,000 population.               1,500
    75,001-150,000 population               2,050
    150,001-500,000                         3,175
     population.
    500,001-1,200,000                       5,050
     population.
    1,200,001-3,000,000                     8,250
     population.
    >3,000,000 population....              10,500
7. FM Classes B, C, C0, C1
 and C2
    <=25,000 population......                 925  FCC, Radio, P.O. Box
                                                    979084, St. Louis,
                                                    MO 63197-9000.
    25,001-75,000 population.               1,625
    75,001-150,000 population               3,000
    150,001-500,000                         3,925
     population.
    500,001-1,200,000                       5,775
     population.
    1,200,001-3,000,000                     9,250
     population.
    >3,000,000 population....              12,025
8. FM Construction Permits...                 750  FCC, Radio, P.O. Box
                                                    979084, St. Louis,
                                                    MO, 3197-9000.
TV (47 CFR, part 73) VHF
 Commercial
    1. Markets 1 thru 10.....              86,075  FCC, TV Branch, P.O.
                                                    Box 979084, St.
                                                    Louis, MO 63197-
                                                    9000.
    2. Markets 11 thru 25....              78,975
    3. Markets 26 thru 50....              42,775
    4. Markets 51 thru 100...              22,475
    5. Remaining Markets.....               6,250
    6. Construction Permits..               6,250
UHF Commercial
    1. Markets 1 thru 10.....              38,000  FCC,UHF Commercial,
                                                    P.O. Box 979084, St.
                                                    Louis, MO 63197-
                                                    9000.
    2. Markets 11 thru 25....              35,050
    3. Markets 26 thru 50....              23,550
    4. Markets 51 thru 100...              13,700
    5. Remaining Markets.....               3,675
    6. Construction Permits..               3,675
Satellite UHF/VHF Commercial
    1. All Markets...........               1,525  FCC Satellite TV,
                                                    P.O. Box 979084, St.
                                                    Louis, MO 63197-
                                                    9000.
    2. Construction Permits..                 960

[[Page 52456]]

 
Low Power TV, Class A TV, TV/                 410  FCC, Low Power, P.O.
 FM Translator, & TV/FM                             Box 979084, St.
 Booster (47 CFR part 74).                          Louis, MO 63197-
                                                    9000.
Broadcast Auxiliary..........                  10  FCC, Auxiliary, P.O.
                                                    Box 979084, St.
                                                    Louis, MO 63197-
                                                    9000.
------------------------------------------------------------------------


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


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

------------------------------------------------------------------------
       Radio facilities            Fee amount             Address
------------------------------------------------------------------------
    1. Microwave (Domestic                 $20.00  FCC, P.O. Box 979097,
     Public Fixed)                                  St. Louis, MO 63197-
     (Electronic Filing) (FCC                       9000.
     Form 601 & 159).
Carriers
    1. Interstate Telephone                .00347  FCC, Carriers P.O.
     Service Providers (per                         Box 979084, St.
     interstate and                                 Louis, MO 63197-
     international end-user                         9000.
     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                    $510  FCC, Cable, P.O. Box
 Service.                                           979084, St. Louis,
                                                    MO 63197-9000.
2. Cable TV System (per                      1.02
 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            $139,100  FCC, International,
 Orbit).                                            P.O. Box 979084, St.
                                                    Louis, MO 63197-
                                                    9000.
Space Stations (Non-                      149,875  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                                   Louis, MO 63197-
 registration).                                     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, 2012)
------------------------------------------------------------------------
Terrestrial Common Carrier....  $0.27 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.

[[Page 52457]]



------------------------------------------------------------------------
   Submarine cable systems
   (capacity as of Dec. 31,        Fee amount             Address
            2012)
------------------------------------------------------------------------
< 2.5 Gbps...................             $13,600  FCC, International,
                                                    P.O. Box 979084, St.
                                                    Louis, MO 63197-
                                                    9000.
2.5 Gbps or greater, but less              27,200  FCC, International,
 than 5 Gbps.                                       P.O. Box 979084, St.
                                                    Louis, MO 63197-
                                                    9000.
5 Gbps or greater, but less                54,425  FCC, International,
 than 10 Gbps.                                      P.O. Box 979084, St.
                                                    Louis, MO 63197-
                                                    9000.
10 Gbps or greater, but less              108,850  FCC, International,
 than 20 Gbps.                                      P.O. Box 979084, St.
                                                    Louis, MO 63197-
                                                    9000.
20 Gbps or greater...........             217,675  FCC, International,
                                                    P.O. Box 979084, St.
                                                    Louis, MO 63197-
                                                    9000.
------------------------------------------------------------------------

[FR Doc. 2013-20516 Filed 8-22-13; 8:45 am]
BILLING CODE 6712-01-P