[Federal Register Volume 79, Number 176 (Thursday, September 11, 2014)]
[Rules and Regulations]
[Pages 54190-54212]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-21561]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 14-92; MD Docket No. 13-140; MD Docket No. 12-201; FCC 
14-129]


Assessment and Collection of Regulatory Fees for Fiscal Year 2014

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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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 2014. Section 9 of 
the Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees for annual ``Mandatory 
Adjustments'' and ``Permitted Amendments'' to the Schedule of 
Regulatory Fees.

DATES: Effective September 11, 2014. To avoid penalties and interest, 
regulatory fees should be paid by the due date of September 23, 2014.

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 14-129, MD Docket No. 14-92; MD Docket No. 13-140; 
MD Docket No. 12-201, adopted on August 29, 2014 and released on August 
29, 2014.

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 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\
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    \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.
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C. Final Regulatory Flexibility Analysis

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

    4. This Report and Order concludes the rulemaking proceeding 
initiated to collect $339,844,000 in regulatory fees for Fiscal Year 
(FY) 2014, pursuant to Section 9 of the Communications Act of 1934, as 
amended (the Act or Communications Act).\3\ These regulatory fees are 
due in September 2014. This Report and Order also adopts several 
proposals from our June 13, 2014 Notice of Proposed Rulemaking and 
Second Further Notice of Proposed Rulemaking (FY 2014 NPRM).\4\ 
Specifically the proposals adopted are: (1) Ending the exemption of AM 
expanded band licenses from regulatory fees; (2) revising the 
apportionment between International Bureau licensees to reduce the 
proportion paid by the submarine cable/terrestrial and satellite bearer 
circuits by approximately five percent; (3) increasing the regulatory 
fees paid by earth station licensees by approximately 7.5 percent to 
more accurately reflect the regulation and oversight of this industry; 
(4) increasing our annual de minimis threshold from under $10 to $500; 
(5) eliminating several regulatory fee categories (218-219 MHz, 
broadcast auxiliaries, and satellite television construction permits) 
from regulatory fee requirements; and adopting a regulatory fee for 
each toll free number managed by a Responsible Organization. The 
increase in the annual de minimis threshold, the elimination of three 
regulatory fee categories, and the new toll free category will be 
effective in FY 2015, following the required notification of Congress. 
The other provisions adopted in this Report and Order will be in effect 
for FY 2014 upon publication of a summary of this Report and Order in 
the Federal Register and are reflected in the fee schedule attached as 
Appendix C.
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    \3\ 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). In FY 2013, the 
Commission was also required to collect $339,844,000 in regulatory 
fees. The final collection amount was $10.9 million over this total, 
which the Commission deposited in the U.S. Treasury. The year-to-
date accumulated total is $81.9 million.
    \4\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2014, Notice of Proposed Rulemaking, Second Further Notice of 
Proposed Rulemaking, and Order, MD Docket Nos. 14-92, 13-140, and 
12-201, 79 FR 37982 (July 3, 2014) (2014) (FY 2014 NPRM).
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III. Background

    5. The Commission is required by Congress to assess regulatory fees 
each year in an amount that can reasonably be expected to equal the 
amount of its appropriation.\5\ The Commission calculates the fees by 
first determining the full-time equivalent (FTE) \6\ number of 
employees performing the regulatory activities specified in section 
9(a), ``adjusted to take into account factors

[[Page 54191]]

that are reasonably related to the benefits provided to the payer of 
the fee by the Commission's activities. . . .'' \7\ Regulatory fees 
must also cover the costs the Commission incurs in regulating entities 
that are statutorily exempt from paying regulatory fees,\8\ entities 
whose regulatory fees are waived,\9\ and entities that provide 
nonregulated services.\10\ 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 Bureau, Media 
Bureau, Wireline Competition Bureau, and part of the International 
Bureau. All other FTEs are considered ``indirect.'' \11\ The total FTEs 
for each fee category is calculated by counting the number of direct 
FTEs in the core bureau that regulates that category, plus a 
proportional allocation of indirect FTEs. Each regulatee within a fee 
category pays its proportionate share based on an objective measure, 
e.g., revenues, or number of subscribers or licenses.\12\
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    \5\ 47 U.S.C. 159(b)(1)(B).
    \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.
    \7\ 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.
    \8\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2004, Report and Order, 69 FR 41030, para 11 (July 7, 2004) (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.
    \9\ 47 CFR 1.1166.
    \10\ E.g., broadband services, non-U.S.-licensed space stations.
    \11\ The indirect FTEs are the employees from the International 
Bureau (in part), Enforcement Bureau, Consumer & Governmental 
Affairs Bureau, Public Safety & Homeland Security Bureau, Chairman 
and Commissioners' offices, Office of the 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 1,044 FTEs.
    \12\ For a fuller description of this process, see Assessment 
and Collection of Regulatory Fees for Fiscal Year 2012, Notice of 
Proposed Rulemaking, 77 FR 29275 (May 7, 2012) (2012) (FY 2012 
NPRM).
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    6. Section 9 of the Act requires the Commission to make certain 
changes to the regulatory fee schedule ``if the Commission determines 
that the schedule requires amendment to comply with the requirements'' 
of section 9(b)(1)(A).\13\ The Commission is required, by rule, to 
revise regulatory fees by proportionate increases or decreases to 
reflect changes in the amount appropriated for the performance of its 
regulatory activities.\14\ The Commission must add, delete, or 
reclassify services in the fee schedule to reflect additions, 
deletions, or changes in the nature of its services ``as a consequence 
of Commission rulemaking proceedings or changes in law.'' These 
``permitted amendments'' require Congressional notification\15\ before 
they may take effect and any resulting changes in fees are not subject 
to judicial review.\16\
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    \13\ 47 U.S.C. 159(b)(1)(A).
    \14\ 47 U.S.C. 159(b)(2) (Mandatory Amendments).
    \15\ 47 U.S.C. 159(b)(4)(B).
    \16\ 47 U.S.C. 159(b)(3).
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    7. The Commission will continue our efforts to examine areas where 
it can improve the regulatory fee process to better reflect changes in 
the industry and at the Commission, and this Report and Order is 
another step in this process. The Commission began this regulatory fee 
reform analysis in the FY 2008 Further Notice.\17\ Regulatory fees 
cannot be precisely calibrated to the actual costs of the regulatory 
activities; however, there may be areas in which the regulatory fee 
process can be improved and revised.\18\ In that proceeding, the 
Commission sought comment on several issues, e.g., updating FTE 
allocations; \19\ ITTA's proposal to add wireless providers to the 
Interstate Telecommunications Service Providers (ITSP) category, which 
includes interexchange carriers (IXCs), incumbent local exchange 
carriers (LECs), toll resellers, and other IXC service providers 
regulated by the Wireline Competition Bureau; \20\ adding a category 
for Internet Protocol TV (IPTV); \21\ and adopting a per-subscriber fee 
for direct broadcast satellite (DBS).\22\ In its 2012 report on the 
Commission's regulatory fee program the Government Accountability 
Office (GAO) encouraged the Commission to update the FTE allocations to 
better align regulatory fees with regulatory costs.\23\ In the FY 2012 
NPRM \24\ and the FY 2013 NPRM \25\ the Commission also sought comment 
on revising the FTE allocations; and in the FY 2013 Report and Order 
the Commission adopted an updated FTE allocations that more accurately 
reflects the number of FTEs working on regulation and oversight of the 
regulatees in the various fee categories; \26\ the Commission also 
combined the UHF and VHF television stations into one regulatory fee 
category,\27\ and created a fee category to include IPTV.\28\
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    \17\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, MD Docket No. 08-65, Report and Order and Further Notice 
of Proposed Rulemaking, 73 FR 50285 (August 26, 2008) (2008) (FY 
2008 Further Notice).
    \18\ FY 2008 Further Notice, 73 FR 50285 at 50287, para. 5-6.
    \19\ Id., 73 FR 50285 at 50288-50289, para. 10, 18, 19.
    \20\ Id., 73 FR 50285 at 50289, para. 19
    \21\ Id., 73 FR 50285 at 50288-50289, para. 24.
    \22\ Id., 73 FR 50285 at 50290, para. 26. Although these 
proposals were not adopted at that time; we later adopted a new 
methodology for assessing regulatory fees for the submarine cable 
industry. See Assessment and Collection of Regulatory Fees for 
Fiscal Year 2008, Second Report and Order, 74 FR 22104 (May 12, 
2009) (2009) (Submarine Cable Order).
    \23\ See GAO, Federal Communications Commission, ``Regulatory 
Fee Process Needs to be Updated,'' Aug. 2012, GAO-12-686 (GAO 
Report).
    \24\ FY 2012 NPRM, 77 FR 29275.
    \25\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2013, Notice of Proposed Rulemaking and Further Notice of 
Proposed Rulemaking, MD Docket Nos. 13-140, 12-201, and 08-65, 78 FR 
34612 (June 10, 2013) (2013) (FY 2013 NPRM).
    \26\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2013, MD Docket No. 08-65, Report and Order, 78 FR 52433 
(August 23, 2013) (2013) (FY 2013 Report and Order).
    \27\ FY 2013 Report and Order, 78 FR 52433 at 52443 paras. 32-
34.
    \28\ Id., 78 FR 52433 at 52443-52444 paras. 35-36.
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    8. In our FY 2014 NPRM, the Commission sought comment on proposed 
regulatory fees and on whether AM expanded band radio stations should 
remain exempt from regulatory fees. In addition, the Commission also 
sought comment on additional reform measures including: (1) 
Reallocating some of the FTEs from the Enforcement Bureau, the Consumer 
& Governmental Affairs Bureau, and the Office of Engineering and 
Technology, as direct FTEs for regulatory fee purposes; (2) 
reapportioning the fee allocations between groups of International 
Bureau regulatees; (3) periodically updating FTE allocations; (4) 
applying a cap on any regulatory fee increases for FY 2014; (5) 
improving access to information through our Web site; (6) establishing 
a higher de minimis threshold; (7) eliminating certain regulatory fee 
categories; (8) combining ITSP and wireless voice services into one fee 
category; (9) adding DBS operators to the cable television and IPTV 
category; (10) creating a new regulatory fee category for non-U.S. 
licensed space stations, or, alternatively, reallocating some FTEs 
assigned to work on non-U.S. licensed space station issues as indirect 
for regulatory fee purposes; and (11) adding a new regulatory fee 
category for toll free numbers. Some of these issues had been raised in 
earlier regulatory fee

[[Page 54192]]

proceedings and other issues were discussed for the first time as part 
of our reform process. The Commission received 19 comments (some of 
which are joint comments) and six reply comments. Appendix A is a list 
of the commenters in this proceeding.

IV. Discussion

A. AM Expanded Band Radio Stations

    9. Licensees operating a standard band AM station (540-1600 kHz) 
linked to an AM expanded band station (1605-1705 kHz) are subject to 
regulatory fees for the standard band station only.\29\ The Commission 
decided not to require section 9 regulatory fee payments for AM 
expanded band stations to encourage the movement to the expanded band 
and reduce interference in the standard band.\30\ In doing so, the 
Commission determined that at some future point it might impose section 
9 regulatory fee requirements for AM expanded band stations.\31\ In the 
FY 2008 FNPRM, the Commission stated that ``[t]here is no compelling 
reason to permanently exempt AM expanded band licensees from paying 
regulatory fees. As a general matter, it would be appropriate to treat 
the AM expanded band and the AM standard band similarly for regulatory 
fee purposes.'' \32\ In the FY 2014 NPRM, the Commission proposed 
adopting a section 9 regulatory fee obligation for all AM expanded band 
radio stations.\33\
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    \29\ 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, 70 FR 41967 at 41971, para. 24 (2005) 
(FY 2005 Report and Order).
    \30\ FY 2005 Report and Order, 70 FR 41967 at 41971, para. 25.
    \31\ Id.
    \32\ See FY 2008 FNPRM, 73 FR 50201 at 50203, paras. 11-13.
    \33\ FY 2014 NPRM, 79 FR 37982 at 37986 at para. 25.
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    10. A number of AM expanded band broadcasters have chosen to 
operate exclusively in the expanded band; at least two opted to retain 
their standard band licenses. As a result, the Commission finds that 
there is no longer a reason to provide this regulatory fee exemption to 
AM broadcasters.\34\ Broadcasters who have retained both their standard 
and expanded band licenses should not continue to be exempt from paying 
regulatory fees because the exemption's original purpose of encouraging 
AM broadcasters to move to the expanded band and reduce interference in 
the standard band has been achieved. Therefore, the Commission adopts 
the proposal in the FY 2014 NPRM by discontinuing the exemption. 
Broadcasters who are operating in the AM expanded band will pay 
regulatory fees on the same basis as AM standard band licensees 
beginning in FY 2014.
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    \34\ Commenters addressing this issue support assessing 
regulatory fees on the AM expanded band licensees. See T. Cowan 
Comments at 1. We did not receive any comments objecting to 
discontinuation of the exemption.
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B. Reallocations Within Fee Categories

1. Submarine Cable
    11. Submarine cable systems \35\ transport data, as well as voice 
services, for international carriers, Internet providers, wholesale 
operators, corporate customers, and governments. The submarine cable 
industry is subject to minimal regulation and oversight from the 
Commission after the initial licensing process.\36\ After a submarine 
cable system is licensed, the regulatory activity is primarily limited 
to preparing Circuit Status Reports \37\ and filing of quarterly 
reports by licensees affiliated with a carrier with market power in 
destination market of the submarine cable.\38\
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    \35\ Submarine cable systems are undersea cables between land-
based stations carrying data and voice services.
    \36\ FY 2014 NPRM, 79 FR 37982 at 37988 at para. 34.
    \37\ See Reporting Requirements for U.S. Providers of 
International Telecommunications Services; Amendment of Part 43 of 
the Commission's Rules, IB Docket No. 04-112, Second Report and 
Order, 28 FCC Rcd 575, 601-08, paras. 89-108 (2013), recon. pending.
    \38\ See 47 CFR 1.767(l).
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    12. Previously, commenters proposed that the regulatory fees among 
International Bureau licensees should be adjusted to reflect this 
minimal oversight \39\ and the Commission sought comment on this issue 
in the FY 2014 NPRM.\40\ The Commission tentatively concluded in the FY 
2014 NPRM that it should revise the apportionment between satellite 
services (space station and earth station regulatory fee categories) 
and the submarine cable operators/terrestrial and satellite circuits 
(submarine cable/bearer circuits) to more accurately reflect the amount 
of oversight and regulation for these industries.\41\ The satellite 
services pay 59 percent of the total regulatory fees allocated to 
International Bureau licensees and submarine cable pays 41 percent of 
this total. Submarine cable is subject to minimal regulation and 
oversight after being licensed, and therefore, the current allocation 
of 41 percent of regulatory fees is excessive for this industry.
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    \39\ See, e.g., NASCA Comments at 8-9 (filed June 19, 2013); 
Telstra Comments at 2 (filed June 19, 2013); ICC Reply Comments at 2 
(filed June 19, 2013).
    \40\ FY 2014 NPRM, 79 FR 37982 at 37988 at para. 34.
    \41\ The revenue allocation between submarine cable operators 
and common carrier terrestrial and satellite circuits is 87.6 
percent/12.4 percent and was adopted in the Submarine Cable Order. 
See Assessment and Collection of Regulatory Fees for Fiscal Year 
2008, Second Report and Order, 74 FR 22104 (2009) (Submarine Cable 
Order). The Commission did not propose any change to this allocation 
in the FY 2014 NPRM.
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    13. For instance, in response to the FY 2014 NPRM, NASCA, 
representing several submarine cable operators (with 29 of the 41 
active systems landing in the United States) emphasized that the 
Commission engages in limited enforcement activity, policy and 
rulemaking actions, user information services, and international 
activities regarding submarine cable operators.\42\ NASCA also observes 
that most of the Commission's work related to submarine cable is 
limited to licensing, processing applications, and reviewing proposed 
transactions.\43\
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    \42\ NASCA Comments at 5-7.
    \43\ NASCA Comments at 7.
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    14. We agree that the combined revenue requirement for submarine 
cable is currently too high compared to the revenue requirement for the 
satellite and earth station operators.\44\ Specifically, the current 
regulatory fee assessment for the submarine cable category does not 
fairly take into account the Commission's minimal oversight and 
regulation of the industry, as demonstrated by NASCA. We therefore 
reduce the regulatory fee apportionment for submarine cable to more 
accurately reflect the amount of regulation and oversight for this 
industry. In doing so, we find a five percent decrease in regulatory 
fee obligations is appropriate at this time. This decrease reflects 
that although only two FTEs in the International Bureau work on 
submarine cable issues, a total of 47.5 indirect FTEs devote time to 
both submarine cable and other regulatees of the International 
Bureau.\45\ A five percent decrease, is therefore appropriate because 
it reflects both the direct work on submarine cable issues and the 
indirect FTEs that devote their time to International Bureau regulatees 
as a whole. As discussed below, this approximately five percent 
decrease in regulatory fees for submarine cable results in a change in 
the allocation percentage between Submarine Cable and Bearer Circuit 
issues (41 percent of International regulatory fees), and Satellite and 
Earth Station issues (59 percent of International regulatory fees)

[[Page 54193]]

to 35.72 percent and 64.28 percent, respectively. We will revisit the 
issue of submarine cable systems in future regulatory fee proceedings 
to determine if additional adjustment is warranted.
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    \44\ NASCA Comments at 10-12.
    \45\ FY 2013 Report and Order, 78 FR 52433.
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2. Earth Stations
    15. An earth station transmits or receives messages from a 
satellite. In the FY 2014 NPRM, the Commission recognized that 
oversight and regulation of the satellite industry by International 
Bureau FTEs involves legal, technical, and policy issues pertaining to 
both space station and earth station operations and is therefore 
interdependent to some degree.\46\ We also recognized in the FY 2014 
NPRM, that our activities concerning the satellite industry also 
involve issues related to non-U.S. licensed space stations that access 
the U.S. market but do not pay regulatory fees.\47\ In light of this, 
we sought comment on whether we should increase the earth station 
regulatory fee allocation in order to reflect more appropriately the 
number of FTEs devoted to the regulation and oversight of the earth 
station portion of the satellite industry.\48\ Commenters suggest that 
if the Commission needs a specific mechanism to account for 
International Bureau FTEs working on market access requests from non-
U.S.-licensed satellites, the Commission should do so by increasing the 
earth station regulatory fee.\49\ EchoStar and DISH observe that earth 
station licensees' regulatory fees may not reflect the regulatory cost 
associated with these systems for regulatory fee purposes. These 
commenters also note that space stations pay an unreasonably high 
portion of the regulatory fees for this allocation.\50\ Commenters also 
suggest the current allocation between space and earth station 
operators does not reflect the significant streamlining of space 
station regulation that has occurred.\51\ We agree with commenters and 
adjust the regulatory fees for earth stations to reflect the relative 
oversight and regulation of space stations and earth stations. 
Accordingly, as discussed above, we revise the allocation of the 
submarine cable/bearer circuit fee categories from 41 percent of all 
international regulatory fees to approximately 36 percent of all 
international regulatory fees. This reduction in the allocation of 
submarine cable/bearer circuit fee categories results in an increase in 
the satellite/earth station allocation percentage from 59 percent to 
approximately 64 percent. This five percent change in allocation 
results in a larger projected revenue collection for satellite and 
earth stations. To collect this additional revenue for FY 2014 we will 
increase earth stations regulatory fees by 7.5 percent from their FY 
2013 rates and we will collect the remaining revenue from the satellite 
fee categories.
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    \46\ FY 2014 NPRM, 79 FR 37982 at 37988 at para. 35. Some of 
these FTEs work on earth station issues that pertain to non-U.S.-
licensed space stations.
    \47\ Id., 79 FR 37982 at 37988 at para. 35.
    \48\ Id., 79 FR 37982 at 37988 at para. 35.
    \49\ Satellite Parties Comments at 8-10 (``assessing these costs 
as part of earth station regulatory fees may be a better (albeit 
imperfect) method of capturing these costs'').
    \50\ See, e.g., Echostar and DISH Comments at 5.
    \51\ See, e.g., SIA Comments at 5. See also Comprehensive Review 
of Licensing and Operating Rules for Satellite Services, Report and 
Order, 28 FCC Rcd 12403 at 1205, n.2 (2013) (providing an exhaustive 
list of streamlined actions with respect to satellite services).
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C. Improving the Regulatory Fee Process

    16. As noted earlier, this Report and Order is our latest step in 
reforming our regulatory fee process. In the FY 2013 Report and Order, 
the Commission committed to additional regulatory fee reform, stating:

    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.\52\

    \52\ FY 2013 Report and Order, 78 FR 52433.
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    17. We adopted significant reforms in the FY 2013 Report and Order 
and we continued to seek comment on additional reforms in the FY 2014 
NPRM and in the Further Notice included in this order. In the FY 2014 
NPRM we sought comment on how often we should engage in an in-depth 
review of our regulatory fee methodology in a way that balances the 
need for stability to enable regulatees in various industry sectors to 
budget for regulatory fees against the need to reflect the changing 
work of the Commission FTEs.\53\ Commenters agree that we should update 
our FTE allocations at regular intervals, such as annually, to avoid 
assessing regulatory fees based on outdated information.\54\
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    \53\ FY 2014 NPRM, 79 FR 37982.
    \54\ CTIA Comments at 2; ITTA Comments at 12-13; USTelecom Reply 
Comments at 2-4 (arguing that we should update the FTE count 
annually).
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    18. We conclude that it is appropriate to update the FTE count 
annually. We agree with commenters and the GAO that regular updates are 
appropriate in order to calculate regulatory fees more accurately. We 
also find it appropriate to perform these updates annually because 
doing so will ensure use of the most current FTE counts in regulatory 
fee calculations, while imposing little administrative burden on the 
Commission. We will begin this process beginning in FY 2015.
    19. Commenters also suggest that we conclude our regulatory fee 
proceedings earlier in the year; \55\ however, it is not feasible to do 
so because our fee calculations (unit estimates) are generally updated 
based on industry submissions with filing deadlines between April and 
June, and this data is crucial in determining an accurate fee rate 
prior to release of the regulatory fee notice of proposed 
rulemaking.\56\ Given these deadlines, which are set for additional 
purposes beyond regulatory fees and the time needed to comply with 
rulemaking requirements, it is not currently feasible to conduct and 
conclude the regulatory fee process earlier in the year.
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    \55\ ITTA Comments at 14; USTelecom Reply Comments at 2-3.
    \56\ E.g., revenue information is provided in the FCC Form 499-
A, due April 1 each year, and Media Bureau licensees file data in 
June and July. In addition, the Circuit Status Report, which 
contains bearer circuit and submarine cable information, is filed 
with the International Bureau by March 31 each year. After the 
International Bureau staff analyzes this information and requests 
supporting data, the final data is usually provided to the Managing 
Director in June.
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    20. Concerning revising allocations, the Commission believes it 
would be appropriate to seek comment on any such revisions every two 
years, or as needed. Whereas updating the FTEs can be accomplished at 
minimal cost to the Commission, revising the allocations is a more 
complex process requiring in-depth analysis and public comment. 
Moreover, revising the allocations annually could create regulatory 
uncertainty based on changes stemming from small variations in annual 
workload rather than a longer lasting change. Therefore, given the need 
for regulatory certainty and the time needed for the Commission to 
conduct the appropriate rulemaking proceedings, the Commission 
concludes that a biennial process for revising allocations is 
preferable to an annual one.

D. Revising the De Minimis Threshold

    21. Currently, a regulatee is exempt from paying regulatory fees if 
the sum total of all of its liabilities for all categories of 
regulatory fees for the fiscal year is less than $10.\57\ Because

[[Page 54194]]

this $10 annual threshold is too low to benefit most small entities, in 
the FY 2014 NPRM the Commission proposed to increase the de minimis 
threshold to $100, $500, or $1,000 to provide more relief to smaller 
entities and improve the cost effectiveness of the Commission's 
collection of regulatory fees.\58\
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    \57\ The Commission's Process Reform Report, 29 FCC Rcd 1338 
(2014), also seeks comment on this issue.
    \58\ FY 2014 NPRM, 79 FR 37982.
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    22. ACA contends, and the Commission agrees, that our previous de 
minimis threshold of $10 was too low to benefit the smaller licensees 
and provide cost effectiveness to our fee collection process.\59\ ACA 
asserts that extending relief from regulatory fees to very small 
operators would have a de minimis impact on our regulatory fee 
collections \60\ but may contribute to the difference between staying 
in business or shuttering the system for the operators and small and 
rural communities they serve.\61\ NAB also asserts that a higher de 
minimis threshold would permit stations in small markets to devote more 
resources towards improved programming and signal quality.\62\
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    \59\ ACA Comments at 9-13.
    \60\ For example, figures from our FY 2013 regulatory fee 
collections show that increasing the de minimis threshold to $500 
would have decreased the amount collected from cable licensees by 
only .125% and making the same change for ITSPs would have decreased 
collections for that fee category by only .04%.
    \61\ ACA Comments at 12.
    \62\ NAB Comments at 2.
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    23. AT&T suggests that in setting the de minimis threshold the 
Commission select a ``fee amount just north of the point at which it 
costs the Commission more to assess and recover the fee than the fee 
actually brings in.'' \63\ This suggestion is reasonable and, as 
discussed below, the Commission adopts this suggestion today. In 
addition, the Commission also takes into account the significant non-
financial benefits that justify an increased threshold. Smaller 
entities are at greater risk of missing regulatory fee deadlines 
because of their limited budgets and resources. Nonpayment for these 
small entities then often results in the escalation of administrative 
and financial burdens, as these small entities must devote more 
resources to navigate through the late payment recovery process. In 
addition, many of these entities are subject to little Commission 
oversight and regulation which serves to further exacerbate this 
inequity. Therefore, the Commission finds the current $10 threshold 
unnecessarily burdens small entities, and raising it to $500 will 
provide financial relief to these entities, in addition to reducing the 
administrative burden on the Commission. This higher threshold reflects 
the estimated costs of collecting an unpaid, minimal regulatory fee, at 
least $350 in direct costs,\64\ and the benefits to these entities of a 
higher de minimis threshold. In addition, setting the threshold at $500 
is unlikely to reduce fee collections to an amount below the full 
amount of the Commission's annual appropriation. Contrary to the 
assertion of ACA, which argues the de minimis threshold should be cable 
operators serving 1000 or fewer subscribers, or NAB, which argues for a 
$750 or $1,000 de minimis threshold, the Commission believes setting 
the de minimis threshold at $500 is the proper balance to ensure relief 
for smaller entities against the need for sufficient collection of 
regulatory fees consistent with the Commission's responsibilities. In 
particular, the Commission finds a de minimis threshold higher than 
$500 may result in insufficient fees collected for the fiscal year. The 
Commission will continue to monitor the de minimis issue and, in the 
future, will consider whether to further increase the threshold, adopt 
a threshold based on the number of cable and IPTV subscribers as 
suggested by ACA, or revise the threshold on some other basis.
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    \63\ AT&T Comments at 3. See also CTIA Comments at 12.
    \64\ The Commission estimates that the cost of researching, 
creating, and sending a bill to a non-payer bill, and completing all 
follow-up discussion and correspondence, totals more than $350. This 
sum does not include overhead or the more difficult to quantify 
administrative costs of administering the regulatory fee program 
generally.
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    24. The de minimis threshold the Commission adopts today applies 
only to filers of annual regulatory fees (not multi-year filings). This 
de minimis exemption from the payment of regulatory fees applies to the 
sum of all annual regulatory fee obligations that a regulatee has for 
all applicable fee categories; not to individual payments for each 
category separately. So that all licensees have the same opportunity to 
include all of their licenses towards the $500 de minimis exemption, 
the Commission will raise the de minimis threshold to $500 beginning 
October 1, 2014, the first day of fiscal year 2015. For example, in FY 
2015, a regulatee will be exempt from paying regulatory fees if the sum 
total of all annual regulatory fee obligations between October 1, 2014 
and September 30, 2015 is $500 or less. This includes the sum total of 
all annual regulatory fees (but not multi-year wireless fees). The de 
minimis status is not a permanent exemption from regulatory fees. 
Rather, each regulatee will need to reevaluate annually to determine 
whether its total liability for annual regulatory fees falls at or 
below the threshold given any changes that the Commission may make in 
its regulatory fees from year to year.

E. Eliminating Certain Regulatory Fee Categories

    25. In the FY 2014 NPRM, the Commission sought comment on whether 
to exclude certain categories, such as amateur radio vanity call signs 
\65\ ($21.60 for a 10-year license) and general mobile radio service 
(GMRS) \66\ ($25 for a five-year license), from regulatory fees.\67\ 
The Commission also sought comment on eliminating other regulatory fee 
categories, such as Satellite TV, Satellite TV Construction Permits, 
Broadcast Auxiliaries,\68\ LPTV/Class A Television and FM Translators/
Boosters, and CMRS Messaging (Paging) from regulatory fees. The 
Commission sought comment on the benefits of discontinuing such 
collections because these fee categories account for a relatively small 
portion of annual regulatory fees. The fees for single licenses in many 
of these regulatory fee categories are below the de minimis threshold 
adopted above. However, the de minimis threshold is an annual threshold 
and licensees that pay regulatory fees on multiple licenses during the 
fiscal year may exceed this de minimis threshold by the end of the 
fiscal year.
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    \65\ Amateur stations are normally assigned the next available 
call sign, based on the licensee's geographic region and license 
status, i.e., a sequential call sign. 47 CFR 97.17(d). The licensee 
can request a specific unassigned but assignable call sign, known as 
a vanity call sign. 47 CFR 97.19.
    \66\ GMRS is a land-mobile radio service available for short-
distance two-way communications to facilitate the activities of a 
licensee and his or her immediate family members. See 47 CFR 95.1. 
The Commission initially proposed eliminating regulatory fees for 
GMRS in the FY 2008 Further Notice. See FY 2008 Further Notice, 73 
FR 50285 at 50290-50291 at para. 337.
    \67\ CTIA opposes this proposal because the exclusion of some 
categories would shift the burden to other categories. See CTIA 
Comments at 12-13. These fee categories, however, account for a very 
small portion of annual regulatory fees. R. Knowles suggests that we 
eliminate the application fee instead of the regulatory fee. R. 
Knowles Comments at 4-7. In Reply Comments, however, Mr. Knowles 
recommends that the Commission eliminate the GMRS regulatory fee. 
See R. Knowles Reply Comments at 1-5. As noted below, the Commission 
will not eliminate the GMRS regulatory fee because the Commission 
does not yet have an adequate record to support it.
    \68\ Broadcast Auxiliary stations are used for relaying 
broadcast aural and television signals. They can be used to relay 
signals from the studio to the transmitter, or between two points, 
such as a main studio and an auxiliary studio. The Broadcast 
Auxiliary services also include mobile TV pickups and remote pickup 
stations which relay signals from a remote location, back to the 
studio.

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[[Page 54195]]

    26. Most commenters addressing this issue agree with our 
proposal.\69\ Commenters contend that the Commission should eliminate 
CMRS Messaging,\70\ aviation ground licensees,\71\ and certain 
broadcast categories,\72\ because there is not intensive Commission 
oversight or regulation of these industry sectors. At this time, the 
Commission is not eliminating these categories or GMRS, Satellite TV, 
LPTV/Class A Television and FM Translators/Boosters, and amateur radio 
Vanity Call Signs because, based on examination, there is not enough 
support to determine whether the cost of recovery and burden on small 
entities outweighs the collected revenue; or whether eliminating the 
fee would adversely affect the licensing process. The Commission will 
reevaluate this issue in the future to determine if other fee 
categories should be eliminated.
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    \69\ See, e.g., K. Harrison Comments at 2; NAB Comments at 2; R. 
Knowles Reply Comments at 1-5.
    \70\ CMA Comments at 3-5.
    \71\ ASRI Comments at 6.
    \72\ T. Cowan Comments at 1 (suggesting that the Commission also 
eliminate regulatory fees for Broadcast Auxiliaries and 
Translators); NAB Comments at 2 (suggesting the Commission eliminate 
regulatory fees for Broadcast Auxiliaries, Low Power TV/Class A 
Television, and TV/FM Translators and Boosters. The Commission is 
eliminating the broadcast auxiliaries fee category, but not 
translators and boosters or low power TV/Class A television, at this 
time because translators and boosters are still an integral part of 
radio and television operations, whereas broadcast auxiliaries only 
carry the signal forward. As a result, compared to broadcast 
auxiliaries, the fee revenue derived from translators and boosters 
is approximately six times greater ($1.57 million versus .26 
million), which the Commission would still need to recoup. However, 
in instances in which a regulatee has one translator/booster 
license, it would be exempt from regulatory fees because it would 
meet the de minimis threshold.
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    27. The Commission therefore concludes that 218-219 MHz 
licenses,\73\ broadcast auxiliaries, and satellite television 
construction permits be eliminated from the regulatory fee schedule, 
beginning in FY 2015. Entities holding 218-219 MHz licenses pay an 
annual fee consisting of a regulatory fee and an annual license renewal 
fee. The Commission will eliminate the regulatory fee component of this 
three multi-year wireless fee category beginning in FY 2015. Parties 
that already have such licenses, however, must continue to pay the 
annual renewal fee and will not be eligible for a refund of any 
previously paid licensing fees. In the past several years, the 
Commission has received very few applications, if any, for 218-219 MHz 
licenses, which has prompted us to eliminate this fee category. The 
Commission will eliminate annual regulatory fees for satellite 
television construction permits, beginning in FY 2015 because the 
Commission has not received any new applications or payments of 
regulatory fees for this fee category in many years. The Commission has 
also decided to eliminate the broadcast auxiliary fee category 
beginning in FY 2015 because the Commission spends more resources in 
monitoring and collecting these very small fees ($10 in FY 2013) than 
it collects. After these fees are eliminated, licensees will no longer 
be burdened administratively and financially to identify each of their 
call signs and to submit payment. Finally, eliminating this fee 
category benefits the Commission because it will no longer have to 
devote resources to associate each of the 27,000 call signs with the 
primary station of ownership.
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    \73\ The 218-219 MHz Service (formerly known as the Interactive 
Video and Data Service (or IVDS)) is in the 218-219 MHz spectrum 
range. The 218-219 MHz Service spectrum is suitable for providing 
fixed or mobile services.
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F. New Regulatory Fee Categories--Toll Free Numbers

    28. Toll free numbers allow callers to reach the called party 
without being charged for the call; instead the charge for the call is 
paid by the called party (the toll free subscriber).\74\ Toll free 
numbers, as defined in section 52.101(f) of our rules,\75\ are not 
currently subject to regulatory fees. Historically, the Commission has 
not assessed regulatory fees on toll free numbers under the rationale 
that the entities controlling the numbers, wireline and wireless 
carriers, were paying regulatory fees based on either revenues or 
subscribers.\76\ In the FY 2014 NPRM,\77\ the Commission recognized 
this may no longer be a realistic assumption as there appear to be many 
toll free numbers controlled or managed by entities, Responsible 
Organizations or RespOrgs,\78\ that in some cases are not carriers. In 
the FY 2014 NPRM the Commission sought comment on whether it should 
assess regulatory fees on RespOrgs, for each toll free number managed 
by a RespOrg.\79\
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    \74\ 47 U.S.C. 52.101(e), (f).
    \75\ Toll free numbers are telephone numbers for which the toll 
charges for completed calls are paid by the toll free subscriber. 
See 47 CFR 52.101(f). These are 800, 888, 877, 866, 855, or 844 
numbers. SMS/800 (or the 800 Service Management System) is a 
centralized system that performs toll free number management. For a 
list of RespOrgs on the SMS/800 Web site, see http://www.sms800.com/Controls/NAC/Serviceprovider.aspx.
    \76\ See generally, Universal Service Contribution Methodology, 
Further Notice of Proposed Rulemaking, 27 FCC Rcd 5357, 5463-64, 
para. 306 (2012).
    \77\ FY 2014 NPRM, 79 FR 37982 at 37992, para. 57.
    \78\ A RespOrg is a company that manages toll free telephone 
numbers for subscribers. They use the SMS/800 data base to verify 
the availability of specific numbers and to reserve the numbers for 
subscribers. See 47 CFR 52.101(b).
    \79\ In the FY 2014 Further Notice we asked commenters whether 
we should assess regulatory fees on working, assigned, and reserved 
toll free numbers if we should assess regulatory fees for toll free 
numbers that are in the ``transit'' status, or any other status as 
defined in section 52.103 of the Commission's rules. FY 2014 NPRM, 
79 FR 37982 at 37992, para. 57.
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    29. The Commission finds that it has the legal authority and 
responsibility to assess regulatory fees on toll free numbers \80\ and 
therefore adopt a new fee category for toll free numbers in this 
proceeding.\81\ The Commission has exclusive jurisdiction over ``those 
portions of the North American Numbering Plan that pertain to the 
United States.'' \82\ Commission FTEs, primarily in the Wireline 
Competition Bureau and the Enforcement Bureau, devote work to toll free 
numbering issues and activities including enforcement activities,\83\ 
rulemakings, and other policy making proceedings.\84\ Because the 
Commission is required to devote its FTEs to toll number regulation, it 
is appropriate under section 9 of the Act to recover the associated 
costs.\85\ Exercising our authority under section 9 to assess 
regulatory fees on toll free numbers also advances a fundamental 
purpose of section 251(e)(1) of the Act, to ensure the efficient, fair, 
and orderly allocation of toll free numbers.\86\ The Commission is 
empowered to ensure that toll free numbers, a valuable national public 
resource, are allocated in an equitable and orderly manner that serves 
the public interest.\87\
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    \80\ Toll Free Access Codes, Second Report and Order and Further 
Notice of Proposed Rulemaking, 12 FCC Rcd 11162, 11178-79, para. 22 
(1997) (Toll Free Second Report and Order) (Sections 201(b) and 
251(e) of the Act ``empower the Commission to ensure that toll free 
numbers * * * are allocated in an equitable and orderly manner that 
serves the public interest.'')
    \81\ We will seek comment on the fee rate in our annual 
regulatory fee notice of proposed rulemaking next year.
    \82\ 47 U.S.C. 251(e)(1).
    \83\ See, e.g., Richard Jackowitz, IT Connect, Inc., Notice of 
Apparent Liability for Forfeiture, 29 FCC Rcd 3318 (2014); Richard 
Jackowitz, IT Connect, Inc., Notice of Apparent Liability for 
Forfeiture, 28 FCC Rcd 6692 (2013); Telseven, LLC, et al., Notice of 
Apparent Liability for Forfeiture, 27 FCC Rcd 15558 (2013).
    \84\ See, e.g., Toll Free Second Report and Order, 12 FCC Rcd 
11162 (1997).
    \85\ 47 U.S.C. 159(a)(1).
    \86\ See Toll Free Second Report and Order, 12 FCC Rcd at 11176, 
para. 18.
    \87\ Id., 12 FCC Rcd at 11178-79, para. 22.
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    30. Based on our evaluation, the FTEs involved in toll free issues 
are primarily from the Wireline Competition

[[Page 54196]]

Bureau.\88\ Accordingly, a regulatory fee assessed on toll free numbers 
reduces the ITSP regulatory fee total; for example, if the total 
revenue requirement for toll free numbers had been four million dollars 
this year,\89\ expected ITSP revenues would need only be $127,369,000 
instead of $131,369,000 and the ITSP rate would need only be 0.00333 
instead of 0.00343. The Commission, therefore, will assess regulatory 
fees on RespOrgs, for each toll free number managed by a RespOrg.\90\ 
However, the Commission wishes to clarify that the regulatory fee, 
assessed on RespOrgs, for toll free numbers is limited to toll free 
numbers that are accessible within the United States.\91\
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    \88\ See, e.g., Toll Free Service Access Codes, Petition to 
Change the Composition of SMS/800, Inc., CC Docket No. 95-155, WC 
Docket No. 12-260, Order, 28 FCC Rcd 15328 (2013); Enforcement 
Bureau staff also work on toll free issues.
    \89\ See FY 2014 NPRM, 79 FR 37982 at 37992 at para. 57 
(estimating based on assessment of one cent per month per managed 
toll free number by a RespOrg).
    \90\ In the FY 2014 NPRM the Commission asked commenters whether 
it should assess regulatory fees on working, assigned, and reserved 
toll free numbers and whether it should assess regulatory fees for 
toll free numbers that are in the ``transit'' status, or any other 
status as defined in section 52.103 of the Commission's rules. FY 
2014 NPRM, 79 FR 37982 at 37992 at para. 57. Toll free numbers in 
any such status are included in this category.
    \91\ See, e.g., Bell Canada Comments at 2. Other commenters 
support this new category. See, e.g., ITTA Comments at 13. One 
commenter, however, contends that it would be confusing to impose 
regulatory fees on a RespOrg that is not a carrier. See 
Bandwidth.com Reply Comments at 2. USTelecom argues that the 
Commission needs to clarify our proposal to impose regulatory fees 
on toll free numbers. USTelecom Reply Comments at 5.
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    31. Parties requested greater clarity and outreach to promote 
awareness of why this new fee category may be needed, especially for 
RespOrgs that the commenters allege are not generally accustomed to 
being regulated or paying regulatory fees.\92\ Consistent with past 
efforts by Commission staff to seek and obtain greater input concerning 
regulatory fee reform, the Commission will engage and conduct outreach 
to promote awareness of this new category and to promote discussion 
with interested parties.\93\ There will be sufficient time for such 
activities because this change will not take effect until FY 2015. It 
is a ``permitted amendment'' as defined in section 9(b)(3) of the Act, 
which, pursuant to section 9(b)(4)(B), must be submitted to Congress at 
least 90 days before it becomes effective.\94\ Therefore, because the 
Commission will not have sufficient time to provide 90 days' notice 
before September 30, 2014, this change will not be implemented until FY 
2015.
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    \92\ See Bandwidth Reply Comments at 2.
    \93\ See FY 2014 NPRM, 79 FR 37982 at 37992 at para. 57.
    \94\ 47 U.S.C. 159(b)(3).
---------------------------------------------------------------------------

G. Additional Regulatory Fee Reform

    32. In the FY 2014 NPRM the Commission sought comment on ways to 
further improve our regulatory fee process to make it less burdensome 
for all entities, specifically smaller entities.\95\ The Commission 
notes that it is currently seeking comment on Commission-wide ``Process 
Reform,'' \96\ and it plans to adopt reforms to the regulatory fee 
process in conjunction with the Process Reform initiative. In 
particular, the Managing Director has placed regulatory fee waiver 
decisions on the Commission's Web site so that they are accessible to 
the public.\97\ Although the decisions are specifically applicable only 
to the parties involved, these letters can be helpful in providing 
guidance to all waiver applicants regarding the requirements of our 
rules. The Managing Director has also initiated a complete review of 
the Commission's regulatory fee Web page with the objective of 
improving access to other regulatory fee payment information. The 
Managing Director is directed to provide details on other improvements 
in a subsequent public notice.
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    \95\ FY 2014 NPRM, 79 FR 37982 at 37989 at para. 41.
    \96\ Process Reform Report, 29 FCC Rcd 1338 (2014).
    \97\ These are in our electronic comment filing system (ECFS), 
under proceeding ``86-285.''
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H. Other Issues

    33. One of the significant measures adopted in the FY 2013 
regulatory fee reform process was updating the FTE allocations and 
allocating a portion of the International Bureau FTEs as indirect 
FTEs.\98\ The Commission reallocated some FTEs from the International 
Bureau as indirect FTEs because the work those FTEs perform is for the 
Commission as a whole, rather than for a particular group of 
regulatees.\99\ In the FY 2014 NPRM, the Commission sought comment on 
additional FTE reallocations. The Commission recognizes that 
reallocating FTEs from a core bureau as indirect, or from a non-core 
bureau as direct, could better align regulatory fees with the costs of 
regulation. In this Report and Order the Commission does not adopt 
further FTE reallocations. Rather, as discussed below, additional 
information and examination is needed to better understand, at a more 
granular level, the number of FTEs performing work related to the 
various types of regulatees throughout the communications industry. In 
particular, the work of the Wireline Competition Bureau, Wireless 
Telecommunications Bureau, and Media Bureau has, in many cases, 
converged over time and their regulation of various types of regulatees 
involves similar issues and generates common Commission costs.\100\ In 
addition, the Commission has seen an increase in the number of wireless 
subscribers and a decrease in wireline (switched access lines and 
interconnected Voice over Internet Protocol (VoIP), together) 
subscribers.\101\ From June 2011 to June 2014 wireless subscribers have 
increased from 298 million to 335 million, while the total wireline 
access lines (switched access lines and VoIP subscriptions, together) 
have decreased from 146 million to 135 million.\102\ Fewer wireline 
customers over time may result in disproportionately higher regulatory 
fees for the ITSP industry. Also, a growth in segments of the industry 
that do not pay regulatory fees can also increase the regulatory fee 
burden on the remaining industries. For these reasons, Commission staff 
will continue their analysis of these issues and will seek further 
comment on reallocation proposals in future regulatory proceedings.
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    \98\ FY 2013 Report and Order, 78 FR 52433 at 52437 at para. 15-
17.
    \99\ The Commission notes that even with that FTE reallocation, 
a significant number of International Bureau FTEs work on matters 
involving non-U.S.-licensed space stations serving the United 
States. The Commission is also considering reallocating those FTEs 
as indirect but does not adopt such a rule here because it needs to 
develop the record further before making a decision.
    \100\ FY 2013 NPRM, 78 FR 34612 at 34616-34617 at para. 24.
    \101\ See ``Local Telephone Competition: Status as of June 30, 
2013,'' Industry Analysis and Technology Division, Wireline 
Competition Bureau, June 2014 (Local Telephone Competition Report) 
at 2, Figure 1.
    \102\ Local Telephone Competition Report at 2, Figure 1. A 
decrease in total wireline access lines could eventually result in a 
higher rate for the ITSP category if the same number of FTEs are 
assigned to this category.
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    34. In the FY 2014 NPRM, the Commission specifically sought comment 
on a proposal from SIA to reallocate FTEs from the Enforcement Bureau 
and the Consumer & Governmental Affairs Bureau to other bureaus.\103\ 
SIA contends that the FTEs in these two non-core bureaus are focused on 
certain regulatees or licensees and therefore should not be allocated 
proportionally to all the core bureaus as indirect FTEs but should be 
allocated directly to the Wireline, Media, and Wireless bureaus.\104\ 
For

[[Page 54197]]

example, the FTEs in the regional and field offices of the Enforcement 
Bureau primarily investigate issues involving wireless and broadcast 
licensees; however, this division has one FTE responsible for satellite 
interference issues, and may also be involved in wireline issues in the 
course of disaster relief efforts. As a whole, the Enforcement Bureau 
\105\ and the Consumer & Governmental Affairs Bureau FTEs devote a 
small portion of their time to international bureau licensee issues. 
For that reason, the Commission finds that the record does not support 
reallocating these indirect Enforcement Bureau and Consumer & 
Governmental Affairs Bureau FTEs to the Wireline, Enforcement, and 
Wireless Bureaus at this time.\106\
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    \103\ FY 2014 NPRM, 79 FR 37982 at 37987 at para. 28-30.
    \104\ This proposal is supported by several commenters. See, 
e.g., Echostar and DISH Comments at 3-4; NASCA Comments at 12-13; 
SIA Comments at 2-4.
    \105\ See, e.g., Intelsat License, LLC, Notice of Apparent 
Liability for Forfeiture, 28 FCC Rcd 17183 (2013).
    \106\ Several commenters argue that the Commission should not 
take this action at this time. See, e.g., AT&T Comments at 1-2; CTIA 
Comments at 10-12; NAB Comments at 3; USTelecom Reply Comments at 5.
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    35. The Commission also sought comment on reallocating the FTEs 
from the Commission's Office of Engineering and Technology.\107\ This 
office is primarily involved in work related to spectrum issues. For 
example, the office advises the Commission on technical and engineering 
matters, develops and administers Commission decisions regarding 
spectrum allocations, develops technical rules for the operation of 
unlicensed radio devices, authorizes the marketing of radio frequency 
devices as compliant with Commission technical rules, grants 
experimental radio licenses, and is the agency's liaison to the 
National Telecommunications and Information Administration. After 
reviewing the record, the Commission is not persuaded that reallocation 
of these indirect FTEs as direct FTEs to certain bureaus is appropriate 
at this time; however, the Commission will continue to develop the 
record for possible implementation in the future.\108\
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    \107\ FY 2014 NPRM, 79 FR 37982 at 37987-37988 at para. 32. This 
proposal is supported by several commenters. See, e.g. Echostar and 
DISH Comments at 4.
    \108\ NAB agrees that the Commission should adopt a 
comprehensive holistic method for reallocation. NAB Comments at 3-5.
---------------------------------------------------------------------------

    36. As a result, the various reallocation proposals discussed in 
the FY 2014 NPRM regarding the Enforcement Bureau, the Consumer & 
Governmental Affairs Bureau, and the Office of Engineering and 
Technology require further review. The Commission intends to conduct a 
more in-depth, fact-based examination of the work of the FTEs in these 
bureaus and offices and the regulatees benefited by their work. Such 
analysis will be incorporated into any future notice of proposed 
rulemaking concerning regulatory fee allocations in order to determine 
whether reallocation is appropriate.
    37. The Commission also notes that other proposals discussed in the 
FY 2014 NPRM, e.g., a per subscriber charge for DBS,\109\ adding a fee 
category for non-U.S.-licensed space stations,\110\ and combining the 
ITSP category with wireless,\111\ are not adopted in this report and 
order. The Commission declines to adopt these proposals at this time 
due to the complexities of these proposals raised by commenters in the 
record. For example, ITTA's proposal to combine wireless and wireline 
voice services would require a methodology to synthesize two different 
regulatory fee structures for two different industries. Adopting a fee 
category for non-U.S.-licensed space stations raises significant issues 
regarding our authority to assess such a fee as well as the policy 
implications if other countries decided to follow our example.\112\ The 
Commission recognizes that there may be merit to more fundamental 
reform in the regulatory fee process as outlined in these proposals. 
Additional time, however, is needed to provide an opportunity to more 
closely examine and consider these proposals and the record in future 
fiscal year regulatory fee proceedings.\113\
---------------------------------------------------------------------------

    \109\ This issue is supported by some commenters, (see, e.g., 
ACA Comments at 3-9; ITTA Comments at 11-12; NCTA Comments at 3-6; 
NCTA & ACA Reply Comments at 3-11), and is opposed by the DBS and 
satellite industry, (see, e.g., DIRECTV and DISH Comments at 1-18; 
SIA Comments at 6-8).
    \110\ This issue, proposed by Intelsat, (see Intelsat Comments 
at 3-8 and Intelsat Reply Comments at 1-8) is opposed by the rest of 
the satellite industry. See, e.g., EchoStar and DISH Comments at 6-
9; Satellite Parties Comments at 3-8; Satellite Parties Reply 
Comments at 1-7.
    \111\ The ITTA proposal, discussed in ITTA Comments at 5-11, is 
generally opposed by commenters, see, e.g., AT&T Comments at 4-5 
(observing that ``although both wireline and wireless services 
involve voice telecommunications services, they remain strikingly 
different services.''); CTIA Comments at 3-9.
    \112\ These issues are discussed in greater detail in the FY 
2013 NPRM, 78 FR 34612.
    \113\ In the attached Further Notice of Proposed Rulemaking the 
Commission seeks comment on the issue of a per subscriber regulatory 
fee for DBS.
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    38. As a final matter, in the FY 2014 NPRM, the Commission sought 
comment on capping increases at 7.5 percent, or a higher cap, ``for any 
category resulting solely from the reallocations of FTEs or our reform 
measures;'' however, the Commission did not adopted any such measures 
that would result in an increase of over 7.5 percent. The Commission 
recognizes that the fees in some categories may increase for FY 2014 
due to a decrease in the number of units in that particular category. 
These changes in the number of units in each category can occur each 
year without any Commission action. As compared with FY 2013, very few 
fee categories will experience large fee rate increases in FY 2014, and 
these increases do not result from the reform measures that the 
Commission has adopted here. Therefore, a formal cap is not adopted in 
this proceeding. The Commission notes that commenters did not support 
this proposal, as set forth in the FY 2014 NPRM. For example, AT&T 
opposes adopting a cap for FY 2014 unless the Commission can show that 
an uncapped increase in regulatory fees would have a severe impact on 
the economic wellbeing of licensees and that the increase was not due 
to the Commission's efforts to address a long-standing imbalance.\114\
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    \114\ AT&T Comments at 3-4. EchoStar and DISH suggested using 
the rate of inflation instead of 7.5 percent. EchoStar and DISH 
Comments at 6.
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V. Procedural Matters

A. New for Fiscal Year 2014

1. Payments by Check Will No Longer Be Accepted for Payment of Annual 
Regulatory Fees
    39. Pursuant to an Office of Management and Budget (OMB) 
directive,\115\ the Commission is moving towards a paperless 
environment, extending to disbursement and collection of select federal 
government payments and receipts.\116\ The initiative to reduce paper 
and curtail check payments for regulatory fees is expected to produce 
cost savings, reduce errors, and improve efficiencies across 
government. Accordingly, the Commission will no longer accept checks 
(including cashier's checks and money orders) and the accompanying 
hardcopy forms (e.g., Forms 159, 159-B, 159-E, 159-W) 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, cashier's checks, or 
money orders) will be rejected. For payments by wire, a Form 159-E 
should still be transmitted via fax so that the Commission can

[[Page 54198]]

associate the wire payment with the correct regulatory fee information. 
This change will affect all payments of regulatory fees.\117\
---------------------------------------------------------------------------

    \115\ 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.
    \116\ See U.S. Department of the Treasury, Open Government Plan 
2.1, Sept. 2012.
    \117\ 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.
---------------------------------------------------------------------------

B. Assessment Notifications

1. Commercial Mobile Radio Service (CMRS) Cellular and Mobile Services 
Assessments
    40. For regulatory fee collection in FY 2014, the Commission will 
continue to follow our current procedures for conveying CMRS subscriber 
counts to providers, except that in FY 2014 and thereafter, the 
Commission will no longer mail out the initial CMRS assessment letters 
to providers. The Commission will compile data from the Numbering 
Resource Utilization Forecast (NRUF) report that is based on 
``assigned'' telephone number (subscriber) counts that have been 
adjusted for porting to net Type 0 ports (``in'' and ``out'').\118\ 
This information of telephone numbers (subscriber count) will be posted 
on the Commission's electronic filing and payment system (Fee Filer) 
along with the carrier's Operating Company Numbers (OCNs).
---------------------------------------------------------------------------

    \118\ See FY 2005 Report and Order, 70 FR 41967.
---------------------------------------------------------------------------

    41. A carrier wishing to revise its telephone number (subscriber) 
count can do so by accessing Fee Filer and follow the prompts to revise 
their telephone number counts. Any revisions to the telephone number 
counts should be accompanied by an explanation or supporting 
documentation.\119\ 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 a response is not received from 
the provider, or the Commission does not reverse its initial 
disapproval of the provider's revised count submission, the fee payment 
must be based on the number of subscribers listed initially in Fee 
Filer. Once the timeframe for revision has passed, the telephone number 
counts are final and are the basis upon which CMRS regulatory fees are 
to be paid. Providers can view their final telephone counts online in 
Fee Filer. A final CMRS assessment letter will not be mailed out.
---------------------------------------------------------------------------

    \119\ 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.
---------------------------------------------------------------------------

    42. Because some carriers do not file the NRUF report, they may not 
see their telephone number counts in Fee Filer. 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 telephone number counts as of December 31, 2013), 
and submit their fee payment accordingly. Whether a carrier reviews 
their telephone number counts in Fee Filer or not, the Commission 
reserves the right to audit the number of telephone numbers for which 
regulatory fees are paid. In the event that the Commission determines 
that the number of telephone numbers that are paid is inaccurate, the 
Commission will bill the carrier for the difference between what was 
paid and what should have been paid.

C. Payment of Regulatory Fees

1. Lock Box Bank
    43. All lock box payments to the Commission for FY 2014 will be 
processed by U.S. Bank, St. Louis, Missouri, and payable to the FCC. 
During the fee season for collecting FY 2014 regulatory fees, 
regulatees can pay their fees by credit card through Pay.gov,\120\ ACH, 
debit card,\121\ or by wire transfer. Additional payment instructions 
are posted at http://transition.fcc.gov/fees/regfees.html.
---------------------------------------------------------------------------

    \120\ 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 electronic debit 
from your bank account, and wire transfer.
    \121\ 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
    44. 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
    45. Regulatees whose total FY 2014 regulatory fee liability, 
including all categories of fees for which payment is due, is less than 
$10 are exempted from payment of FY 2014 regulatory fees. The new $500 
de minimis threshold that is adopted here will be effective for payment 
of FY 2015 regulatory fees.
4. Standard Fee Calculations and Payment Dates
    46. 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, 2013 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, 2013. In 
instances where a permit or license is transferred or assigned after 
October 1, 2013, 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, 
2013. In instances where a permit or license is transferred or assigned 
after October 1, 2013, 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.\122\
---------------------------------------------------------------------------

    \122\ 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, 2013. The number of subscribers, units, 
or telephone numbers on December 31,

[[Page 54199]]

2013 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, 2013, 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 Appendix C) pay ``small multi-year wireless 
regulatory fees.'' Entities pay these regulatory fees in advance for 
the entire amount period covered by the five-year or ten-year terms of 
their initial licenses, and pay regulatory fees again only when the 
license is renewed or a new license is obtained. These fee categories 
are included in our rulemaking (see Appendix B) to publicize our 
estimates of the number of ``small multi-year wireless'' licenses that 
will be renewed or newly obtained in FY 2014.
     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, 
2013.\123\ Regulatory fees also must be paid for CARS licenses that 
were granted on or before October 1, 2013. In instances where a permit 
or license is transferred or assigned after October 1, 2013, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
---------------------------------------------------------------------------

    \123\ 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 2013, rather than on a count as of December 31, 
2013.
---------------------------------------------------------------------------

     International Services: Regulatory fees must be paid for 
(1) earth stations and (2) geostationary orbit space stations and non-
geostationary orbit satellite systems that were licensed and 
operational on or before October 1, 2013. In instances where a permit 
or license is transferred or assigned after October 1, 2013, 
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, 2013. In instances where a license is transferred or assigned after 
October 1, 2013, responsibility for payment rests with the holder of 
the license as of the fee due date. For regulatory fee purposes, the 
allocation in FY 2014 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, 2013 in any 
terrestrial or satellite transmission facility for the provision of 
service to an end user or resale carrier. When calculating the number 
of such active circuits, the facilities-based common carriers must 
include circuits held by themselves or their affiliates. In addition, 
non-common carrier satellite operators must pay a fee for each circuit 
they and their affiliates hold and each circuit sold or leased to any 
customer, 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, 2013. 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, 2013, 
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 2014 will remain at 87.6 percent for submarine cable 
and 12.4 percent for satellite/terrestrial facilities.

D. Enforcement

    47. To be considered timely, regulatory fee payments must be 
received and stamped at the lockbox bank by the payment due date for 
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 for filing these fees.\124\ 
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,\125\ which generally requires the Commission to 
withhold action on ``applications, including on a petition for 
reconsideration or any application for review of a fee determination, 
or requests for authorization by any entity found to be delinquent in 
its debt to the Commission'' and in the Debt Collection Improvement Act 
of 1996 (DCIA).\126\ The Commission also assesses administrative 
processing charges on delinquent debts to recover additional costs 
incurred in processing and handling the debt pursuant to the DCIA and 
section 1.1940(d) of the Commission's rules.\127\ These administrative 
processing charges will be assessed on any delinquent regulatory fee, 
in addition to the 25 percent late charge penalty. In the 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.
---------------------------------------------------------------------------

    \124\ 47 U.S.C. 159(c).
    \125\ See 47 CFR 1.1910.
    \126\ Delinquent debt owed to the Commission triggers the ``red 
light rule,'' which places a hold on the processing of pending 
applications, fee offsets, and pending disbursement payments. 47 CFR 
1.1910, 1.1911, 1.1912. 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.
    \127\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------

    48. Pursuant to the ``red light rule,'' 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.\128\ 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).\129\
---------------------------------------------------------------------------

    \128\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
    \129\ 47 U.S.C. 159.
---------------------------------------------------------------------------

E. Effective Date

    49. 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 2014 fees before FY 2014 ends on September 30, 2014. 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

[[Page 54200]]

affected by this Report and Order will still have a reasonable period 
in which to make their payments and thereby comply with the rules 
established herein.

VI. Additional Tables



                                 Table A
------------------------------------------------------------------------
                 Commenter                           Abbreviation
------------------------------------------------------------------------
                  List of Commenters--Initial Comments
------------------------------------------------------------------------
American Cable Association.................  ACA.
AT&T Services, Inc.........................  AT&T.
Aviation Spectrum Resources, Inc...........  ASRI.
Bell Canada................................  Bell Canada.
Terry Cowan................................  T. Cowan.
Critical Messaging Association.............  CMA.
DirecTV, LLC...............................  DirecTV.
CTIA--The Wireless Association[supreg].....  CTIA.
DirecTV, LLC and DISH Network L.L.C........  DirecTV and DISH.
EchoStar Satellite Operating Company and     EchoStar and DISH.
 Hughes Network Systems, LLC and DISH
 Network L.L.C.
G. Kris Harrison...........................  K. Harrison.
Intelsat License LLC.......................  Intelsat.
ITTA--the Voice of Midsize Communications    ITTA.
 Companies, the Eastern Rural Telecom
 Association, and Windstream Corporation.
P. Randall Knowles.........................  R. Knowles.
National Association of Broadcasters.......  NAB.
National Cable & Telecommunications          NCTA.
 Association.
North American Submarine Cable Association.  NASCA.
Satellite Industry Association.............  SIA.
SES Americom, Inc., Inmarsat, Inc., and      Satellite Parties.
 Telesat Canada.
------------------------------------------------------------------------
                   List of Commenters--Reply Comments
------------------------------------------------------------------------
Bandwidth.com, Inc.........................  Bandwidth.com.
Intelsat License LLC.......................  Intelsat.
P. Randall Knowles.........................  R. Knowles.
National Cable & Telecommunications          NCTA and ACA.
 Association and American Cable Association.
SES Americom, Inc., Inmarsat, Inc., and      Satellite Parties.
 Telesat Canada.
United States Telecom Association..........  USTelecom.
------------------------------------------------------------------------


                                         Table B--Calculation of FY 2014 Revenue Requirements and Pro-Rata Fees
 [The first ten regulatory fee categories listed 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.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  Computed
                                                                                    FY 2013      Pro-rated FY   uncapped FY   Rounded FY
                   Fee category                      FY 2014 payment    Years       revenue      2014 revenue       2014         2014       Expected FY
                                                          units                    estimate       requirement    regulatory   regulatory   2014 revenue
                                                                                                                    fee          fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)............................               1,700       10         560,000         595,000           35           35         595,000
PLMRS (Shared use)...............................              30,000       10       2,250,000       3,000,000           10           10       3,000,000
Microwave........................................              17,000       10       2,640,000       2,550,000           15           15       2,550,000
218-219 MHz (Formerly IVDS)......................                   5       10           3,750           4,000           82           80           4,000
Marine (Ship)....................................               5,200       10         655,000         780,000           17           15         780,000
GMRS.............................................               8,900        5         197,500         222,500            7            5         222,500
Aviation (Aircraft)..............................               4,200       10         290,000         420,000           10           10         420,000
Marine (Coast)...................................                 300       10         156,750         165,000           55           55         165,000
Aviation (Ground)................................                 510       10         135,000         153,000           30           30         153,000
Amateur Vanity Call Signs........................              11,500       10         230,230         246,100         2.14         2.14         246,100
AM Class A \4a\..................................                  67        1         286,000         274,700        4,105        4,100         274,700
AM Class B \4b\..................................               1,481        1       3,435,250       3,410,900        2,308        2,300       3,410,900
AM Class C \4c\..................................                 832        1       1,201,500       1,212,750        1,385        1,375       1,212,750
AM Class D \4d\..................................               1,522        1       3,862,500       4,033,300        2,661        2,650       4,033,300
FM Classes A, B1 & C3 \4e\.......................               3,107        1       8,379,375       8,466,575        2,731        2,725       8,466,575
FM Classes B, C, C0, C1 & C2 \4f\................               3,139        1      10,597,500      10,437,175        3,316        3,325      10,437,175
AM Construction Permits..........................                  30        1          30,090          17,700          590          590          17,700
FM Construction Permits \1\......................                 185        1         142,500         138,750          750          750         138,750
Satellite TV.....................................                 127        1         190,625         196,850        1,545        1,550         196,850
Satellite TV Construction Permit.................                   3        1           2,880           3,900        1,308        1,025           3,900
Digital TV Markets 1-10..........................                 138        1       6,235,725       6,161,700       44,661       44,650       6,161,700
Digital TV Markets 11-25.........................                 138        1       5,636,875       5,809,800       42,102       42,100       5,809,800
Digital TV Markets 26-50.........................                 182        1       4,965,225       4,909,450       26,964       26,975       4,909,450

[[Page 54201]]

 
Digital TV Markets 51-100........................                 290        1       4,645,275       4,524,000       15,604       15,600       4,524,000
Digital TV Remaining Markets.....................                 380        1       1,769,975       1,805,000        4,751        4,750       1,805,000
Digital TV Construction Permits \1\..............                   5        1          20,950          23,750        4,750        4,750          23,750
Broadcast Auxiliaries............................              25,800        1         254,000         258,000           12           10         258,000
LPTV/Translators/Boosters/Class A TV.............               3,830        1       1,527,250       1,570,300          410          410       1,570,300
CARS Stations....................................                 325        1         165,750         196,625          604          605         196,625
Cable TV Systems, including IPTV.................          65,400,000        1      61,200,000      64,746,000         .993          .99      64,746,000
Interstate Telecommunication Service Providers...     $38,300,000,000        1     135,330,000     131,369,000     0.003425      0.00343     131,369,000
CMRS Mobile Services (Cellular/Public Mobile)....         335,000,000        1      58,680,000      60,300,000        0.179         0.18      60,300,000
CMRS Messag. Services............................           2,900,000        1         240,000         232,000       0.0800        0.080         232,000
BRS \2\..........................................                 900        1         469,200         643,500          715          715         643,500
LMDS.............................................                 190        1          86,700         135,850          715          715         135,850
Per 64 kbps Int'l Bearer Circuits \6a\                      4,484,000        1       1,032,277         932,351        .2079          .21         941,640
 Terrestrial (Common) & Satellite (Common & Non-
 Common).........................................
Submarine Cable Providers (see chart in Appendix                40.19        1       8,530,139       6,586,607      163,897      163,900       6,586,731
 C) \3,6b\.......................................
Earth Stations \6c\..............................               3,400        1         935,000       1,003,000          303          295       1,003,000
Space Stations (Geostationary)...................                  94        1      12,101,700      11,505,600      122,402      122,400      11,505,600
Space Stations (Non-Geostationary)...............                   6        1         899,250         797,100      132,850      132,850         797,100
****** Total Estimated Revenue to be Collected...  ..................  .......     339,965,741     339,837,833  ...........  ...........     339,847,246
****** Total Revenue Requirement.................  ..................  .......     339,844,000     339,844,000  ...........  ...........     339,844,000
Difference.......................................  ..................  .......         121,741         (6,167)  ...........  ...........           3,246
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Appendix B
\1\ The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted to set the regulatory fee to an
  amount no higher than the lowest licensed fee for that class of service. The reductions in the AM and FM Construction Permit revenues are offset by
  increases in the revenue totals for AM and FM radio stations, respectively. Similarly, reductions in the Digital (VHF/UHF) Construction Permit
  revenues are offset by increases in the revenue totals for various Digital television stations by market size, 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 Appendix C lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from
  the adoption of the FY 2008 Further Notice, 24 FCC Rcd 6388 and the Submarine Cable Order, 24 FCC Rcd 4208.
\4\ The fee amounts listed in the column entitled ``Rounded New FY 2014 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
  service. The actual FY 2014 regulatory fees for AM/FM radio station are listed on a grid located at the end of Appendix C.
\5\ As a continuation of our regulatory fee reform for the submarine cable and bearer circuit fee categories, the allocation percentage for these two
  categories, in relation to the satellite (GSO and NGSO) and earth station fee categories, was reduced by approximately 5 per cent. This allocation
  reduction of 5 per cent resulted in an increase in the allocation for the satellite and earth station fee categories. However, only the earth station
  fee rate increased from its FY 2013 fee amount.


              Table C--FY 2014 Schedule of Regulatory Fees
 [The first eleven regulatory fee categories listed 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 category                        fee (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part                35
 90)...............................................
Microwave (per license) (47 CFR part 101)..........             15
218-219 MHz (Formerly Interactive Video Data                    80
 Service) (per license) (47 CFR part 95)...........
Marine (Ship) (per station) (47 CFR part 80).......             15
Marine (Coast) (per license) (47 CFR part 80)......             55
General Mobile Radio Service (per license) (47 CFR               5
 part 95)..........................................
Rural Radio (47 CFR part 22) (previously listed                 10
 under the Land Mobile category)...................
PLMRS (Shared Use) (per license) (47 CFR part 90)..             10

[[Page 54202]]

 
Aviation (Aircraft) (per station) (47 CFR part 87).             10
Aviation (Ground) (per license) (47 CFR part 87)...             30
Amateur Vanity Call Signs (per call sign) (47 CFR                2.14
 part 97)..........................................
CMRS Mobile/Cellular Services (per unit) (47 CFR                  .18
 parts 20, 22, 24, 27, 80 and 90)..................
CMRS Messaging Services (per unit) (47 CFR parts                  .08
 20, 22, 24 and 90)................................
Broadband Radio Service (formerly MMDS/MDS) (per               715
 license) (47 CFR part 27).........................
Local Multipoint Distribution Service (per call                715
 sign) (47 CFR, part 101)..........................
AM Radio Construction Permits......................            590
FM Radio Construction Permits......................            750
Digital TV (47 CFR part 73) VHF and UHF Commercial:
    Markets 1-10...................................         44,650
    Markets 11-25..................................         42,100
    Markets 26-50..................................         26,975
    Markets 51-100.................................         15,600
    Remaining Markets..............................          4,750
    Construction Permits...........................          4,750
Satellite Television Stations (All Markets)........          1,550
Construction Permits--Satellite Television Stations          1,300
Low Power TV, Class A TV, TV/FM Translators &                  410
 Boosters (47 CFR part 74).........................
Broadcast Auxiliaries (47 CFR part 74).............             10
CARS (47 CFR part 78)..............................            605
Cable Television Systems (per subscriber) (47 CFR                 .99
 part 76), Including IPTV..........................
Interstate Telecommunication Service Providers (per               .00343
 revenue dollar)...................................
Earth Stations (47 CFR part 25)....................            295
Space Stations (per operational station in                 122,400
 geostationary orbit) (47 CFR part 25) also
 includes DBS Service (per operational station) (47
 CFR part 100).....................................
Space Stations (per operational system in non-             132,850
 geostationary orbit) (47 CFR part 25).............
International Bearer Circuits--Terrestrial/                       .21
 Satellites (per 64KB circuit).....................
International Bearer Circuits--Submarine Cable.....  See Table Below.
------------------------------------------------------------------------


                                      Table C (Continued)--FY 2014 Schedule of Regulatory Fees: Maintain Allocation
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          FY 2014 Radio station regulatory fees
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM Classes A,   FM Classes B,
                    Population served                       AM Class A      AM Class B      AM Class C      AM Class D        B1 & C3     C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................            $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 2014 Schedule of Regulatory Fees--International Bearer Circuits--
                             Submarine Cable
------------------------------------------------------------------------
    Submarine cable systems
  (capacity as of December 31,     Fee amount            Address
             2013)
------------------------------------------------------------------------
<2.5 Gbps......................         $10,250  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
2.5 Gbps or greater, but less            20,500  FCC, International,
 than 5 Gbps.                                     P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
5 Gbps or greater, but less              40,975  FCC, International,
 than 10 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
10 Gbps or greater, but less             81,950  FCC, International,
 than 20 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
20 Gbps or greater.............         163,900  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
------------------------------------------------------------------------

Table D

Sources of Payment Unit Estimates for FY 2014

    In order to calculate individual service fees for FY 2014, we 
adjusted FY 2013 payment units for each service to more accurately 
reflect expected FY 2014 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

[[Page 54203]]

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 2014 estimates with actual FY 2013 
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 2014 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 2014 payment units are based on FY 2013 
actual payment units, it does not necessarily mean that our FY 2014 
projection is exactly the same number as in FY 2013. We have either 
rounded the FY 2014 number or adjusted it slightly to account for these 
variables.

------------------------------------------------------------------------
             Fee category              Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, 218-219  Based on Wireless
 MHz, Marine (Ship & Coast), Aviation   Telecommunications Bureau
 (Aircraft & Ground), GMRS, Amateur     (``WTB'') projections of new
 Vanity Call Signs, Domestic Public     applications and renewals taking
 Fixed.                                 into consideration existing
                                        Commission licensee data bases.
                                        Aviation (Aircraft) and Marine
                                        (Ship) estimates have been
                                        adjusted to take into
                                        consideration the licensing of
                                        portions of these services on a
                                        voluntary basis.
CMRS Cellular/Mobile Services........  Based on WTB projection reports,
                                        and FY 13 payment data.
CMRS Messaging Services..............  Based on WTB reports, and FY 13
                                        payment data.
AM/FM Radio Stations.................  Based on CDBS data, adjusted for
                                        exemptions, and actual FY 2013
                                        payment units.
Digital TV Stations (Combined VHF/UHF  Based on CDBS data, adjusted for
 units).                                exemptions, and actual FY 2013
                                        payment units.
AM/FM/TV Construction Permits........  Based on CDBS data, adjusted for
                                        exemptions, and actual FY 2013
                                        payment units.
LPTV, Translators and Boosters, Class  Based on CDBS data, adjusted for
 A Television.                          exemptions, and actual FY 2013
                                        payment units.
Broadcast Auxiliaries................  Based on actual FY 2013 payment
                                        units.
BRS (formerly MDS/MMDS)..............  Based on WTB reports and actual
                                        FY 2013 payment units.
LMDS.................................  Based on WTB reports and actual
                                        FY 2013 payment units.
Cable Television Relay Service         Based on data from Media Bureau's
 (``CARS'') Stations.                   COALS database and actual FY
                                        2013 payment units.
Cable Television System Subscribers,   Based on publicly available data
 Including IPTV Subscribers.            sources for estimated subscriber
                                        counts and actual FY 2013
                                        payment units.
Interstate Telecommunication Service   Based on FCC Form 499-Q data for
 Providers.                             the four quarters of calendar
                                        year 2013, the Wireline
                                        Competition Bureau projected the
                                        amount of calendar year 2013
                                        revenue that will be reported on
                                        2014 FCC Form 499-A worksheets
                                        in April, 2014.
Earth Stations.......................  Based on International Bureau
                                        (``IB'') licensing data and
                                        actual FY 2013 payment units.
Space Stations (GSOs & NGSOs)........  Based on IB data reports and
                                        actual FY 2013 payment units.
International Bearer Circuits........  Based on IB reports and
                                        submissions by licensees,
                                        adjusted as necessary.
Submarine Cable Licenses.............  Based on IB license information.
------------------------------------------------------------------------

Table E

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

AM Stations

    For stations with nondirectional daytime antennas, the theoretical 
radiation was used at all azimuths. For stations with directional 
daytime antennas, specific information on each day tower, including 
field ratio, 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. 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. 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.

FM Stations

    The greater of the horizontal or vertical effective radiated power 
(ERP) (kW) and respective height above average terrain (HAAT) (m) 
combination was used. Where the antenna height above mean sea level 
(HAMSL) was available, it was used in lieu of the average HAAT figure 
to calculate specific HAAT figures for each of 360 radials under study. 
Any available directional pattern information was applied as well, to 
produce a radial-specific ERP figure. The HAAT and ERP figures were 
used in conjunction with the Field Strength (50-50) propagation curves 
specified in 47 CFR 73.313 of the Commission's rules to predict the 
distance to the principal community (70 dBu (decibel above 1 microVolt 
per meter) or 3.17 mV/m) contour for each of the 360 radials. 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

[[Page 54204]]

for the predicted principal community coverage area.

  Table F--Revised FTE (as of 9/30/12) Allocations FY 2013 Schedule of
               Regulatory Fees (Fee Rates Capped at 7.5%)
 [The first eleven regulatory fee categories listed 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 category                       fee  (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part                40
 90)...............................................
Microwave (per license) (47 CFR part 101)..........             20
218-219 MHz (Formerly Interactive Video Data                    75
 Service) (per license) (47 CFR part 95)...........
Marine (Ship) (per station) (47 CFR part 80).......             10
Marine (Coast) (per license) (47 CFR part 80)......             55
General Mobile Radio Service (per license) (47 CFR               5
 part 95)..........................................
Rural Radio (47 CFR part 22) (previously listed                 15
 under the Land Mobile category)...................
PLMRS (Shared Use) (per license) (47 CFR part 90)..             15
Aviation (Aircraft) (per station) (47 CFR part 87).             10
Aviation (Ground) (per license) (47 CFR part 87)...             15
Amateur Vanity Call Signs (per call sign) (47 CFR                1.61
 part 97)..........................................
CMRS Mobile/Cellular Services (per unit) (47 CFR                  .18
 parts 20, 22, 24, 27, 80 and 90)..................
CMRS Messaging Services (per unit) (47 CFR parts                  .08
 20, 22, 24 and 90)................................
Broadband Radio Service (formerly MMDS/MDS) (per               510
 license) (47 CFR part 27).........................
Local Multipoint Distribution Service (per call                510
 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 Markets)........          1,525
Construction Permits--Satellite Television Stations            960
Low Power TV, Class A TV, TV/FM Translators &                  410
 Boosters (47 CFR part 74).........................
Broadcast Auxiliaries (47 CFR part 74).............             10
CARS (47 CFR part 78)..............................            510
Cable Television Systems (per subscriber) (47 CFR                1.02
 part 76)..........................................
Interstate Telecommunication Service Providers (per               .00347
 revenue dollar)...................................
Earth Stations (47 CFR part 25)....................            275
Space Stations (per operational station in                 139,100
 geostationary orbit) (47 CFR part 25) also
 includes DBS Service (per operational station)....
Space Stations (per operational system in non-             149,875
 geostationary orbit) (47 CFR part 25).............
International Bearer Circuits--Terrestrial/                       .27
 Satellites (per 64KB circuit).....................
International Bearer Circuits--Submarine Cable.....  See Table Below.
------------------------------------------------------------------------


                                                Table F (Continued)--FY 2013 Schedule of Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          FY 2013 radio station regulatory fees
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM Classes A,   FM Classes B,
                    Population served                       AM Class A      AM Class B      AM Class C      AM Class D        B1 & C3     C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................            $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
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 54205]]


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.
------------------------------------------------------------------------

VII. Regulatory Flexibility Analysis

Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\130\ an Initial Regulatory Flexibility Analysis (IRFA) 
was included in the FY 2014 NPRM. The Commission sought written public 
comment on the proposals in the FY 2014 NPRM, including comment on the 
IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms to the 
IRFA.\131\
---------------------------------------------------------------------------

    \130\ 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).
    \131\ 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) 2014 proceeding to 
collect $339,844,000 in regulatory fees for FY 2014, pursuant to 
Section 9 of the Communications Act.\132\ These regulatory fees will be 
due in September 2014. 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 in an 
amount that can reasonably be expected to equal the amount of the 
Commission's annual appropriation.\133\
---------------------------------------------------------------------------

    \132\ 47 U.S.C. 159(a).
    \133\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    3. In our FY 2014 NPRM, we sought comment on proposed regulatory 
fees and on whether AM expanded band radio stations should remain 
exempt from regulatory fees. In addition, we sought comment on 
additional reform measures including: (1) Reallocating some of the FTEs 
from the Enforcement Bureau, the Consumer & Governmental Affairs 
Bureau, and the Office of Engineering and Technology, as direct FTEs 
for regulatory fee purposes; (2) reapportioning the fee allocations 
between groups of International Bureau regulatees; (3) periodically 
updating FTE allocations; (4) applying a cap on any regulatory fee 
increases for FY 2014; (5) improving access to information through our 
Web site; (6) establishing a higher de minimis amount; (7) eliminating 
certain regulatory fee categories; (8) combining ITSP and wireless 
voice services into one fee category; (9) adding DBS operators to the 
cable television and IPTV category; (10) creating a new regulatory fee 
category for non-U.S. licensed space stations, or, alternatively, 
reallocating some FTEs assigned to work on non-U.S. licensed space 
station issues as indirect for regulatory fee purposes; and (11) adding 
a new regulatory fee category for toll free numbers. Some of these 
issues had been raised in earlier regulatory fee proceedings and other 
issues were discussed for the first time as part of our reform process.
    4. The Report and Order adopts some of the proposals from the FY 
2014 NPRM. Specifically, in addition to adopting the proposed new 
regulatory fee rates, the Commission (1) removes the exemption on 
regulatory fees from AM expanded band licenses; (2) revises the 
apportionment between the submarine cable/terrestrial and satellite 
bearer circuits and the satellite/earth stations by approximately five 
percent to reduce the proportion paid by the submarine cable/
terrestrial and satellite bearer circuits; (3) increases the allocation 
paid by earth stations and satellites by approximately 7.5 percent to 
more accurately reflect the regulation and oversight of this industry; 
(4) increases the de minimis threshold from $10 to $500 (to go into 
effect for FY 2015); (5) eliminates several regulatory fee categories 
(218-219 MHz, broadcast auxiliaries, and satellite television 
construction permits) from regulatory fee requirements (to go into 
effect for FY 2015); and (6) adopts a new toll free number regulatory 
fee category (to go into effect for FY 2015).

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

    5. None.

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.\134\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \135\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\136\ 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.\137\ Nationwide, there are a total of 
approximately 27.9 million small businesses, according to the SBA.\138\
---------------------------------------------------------------------------

    \134\ 5 U.S.C. 603(b)(3).
    \135\ 5 U.S.C. 601(6).
    \136\ 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.''
    \137\ 15 U.S.C. 632.
    \138\ 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

[[Page 54206]]

operated with fewer than 100 employees.\139\ Thus, under this size 
standard, the majority of firms can be considered small.
---------------------------------------------------------------------------

    \139\ See id.
---------------------------------------------------------------------------

    9. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA 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.\140\ 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.\141\ The Commission 
estimates that most providers of local exchange service are small 
entities that may be affected by the rules and policies adopted.
---------------------------------------------------------------------------

    \140\ 13 CFR 121.201, NAICS code 517110.
    \141\ 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.\142\ According to Commission data, 1,307 carriers reported 
that they were incumbent local exchange service providers.\143\ Of 
these 1,307 carriers, an estimated 1,006 have 1,500 or fewer employees 
and 301 have more than 1,500 employees.\144\ Consequently, the 
Commission estimates that most providers of incumbent local exchange 
service are small businesses that may be affected by the rules and 
policies adopted.
---------------------------------------------------------------------------

    \142\ 13 CFR 121.201, NAICS code 517110.
    \143\ 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).
    \144\ 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.\145\ 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.\146\ Of 
these 1,442 carriers, an estimated 1,256 have 1,500 or fewer employees 
and 186 have more than 1,500 employees.\147\ 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.\148\ In addition, 72 
carriers have reported that they are Other Local Service 
Providers.\149\ Of the 72, seventy have 1,500 or fewer employees and 
two have more than 1,500 employees.\150\ 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.
---------------------------------------------------------------------------

    \145\ 13 CFR 121.201, NAICS code 517110.
    \146\ See Trends in Telephone Service, at Table 5.3.
    \147\ Id.
    \148\ Id.
    \149\ Id.
    \150\ 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.\151\ According to Commission data, 359 companies reported 
that their primary telecommunications service activity was the 
provision of interexchange services.\152\ Of these 359 companies, an 
estimated 317 have 1,500 or fewer employees and 42 have more than 1,500 
employees.\153\ Consequently, the Commission estimates that the 
majority of interexchange service providers are small entities that may 
be affected by rules adopted.
---------------------------------------------------------------------------

    \151\ 13 CFR 121.201, NAICS code 517110.
    \152\ See Trends in Telephone Service, at Table 5.3.
    \153\ 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.\154\ 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.\155\ 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.\156\ Of these, all 193 have 1,500 or fewer 
employees and none have more than 1,500 employees.\157\ Consequently, 
the Commission estimates that the majority of prepaid calling card 
providers are small entities that may be affected by rules adopted.
---------------------------------------------------------------------------

    \154\ 13 CFR 121.201, NAICS code 517911.
    \155\ http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ2&prodType=table.
    \156\ See Trends in Telephone Service, at Table 5.3.
    \157\ 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.\158\ 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.\159\ 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.\160\ Of these, an estimated 211 have 1,500 or fewer employees 
and two have more than 1,500 employees.\161\ Consequently, the 
Commission estimates that the majority of local resellers are small 
entities that may be affected by rules adopted.
---------------------------------------------------------------------------

    \158\ 13 CFR 121.201, NAICS code 517911.
    \159\ http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ2&prodType=table.
    \160\ See Trends in Telephone Service, at tbl. 5.3.
    \161\ 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.\162\ 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

[[Page 54207]]

operated with more than 100 employees.\163\ 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.\164\ Of these, an estimated 857 have 1,500 or 
fewer employees and 24 have more than 1,500 employees.\165\ 
Consequently, the Commission estimates that the majority of toll 
resellers are small entities that may be affected by the rules adopted 
herein.
---------------------------------------------------------------------------

    \162\ 13 CFR 121.201, NAICS code 517911.
    \163\ http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ2&prodType=table.
    \164\ Trends in Telephone Service, at Table 5.3.
    \165\ 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.\166\ 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.\167\ 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.\168\ Of these, an estimated 279 have 
1,500 or fewer employees and five have more than 1,500 employees.\169\ 
Consequently, the Commission estimates that most Other Toll Carriers 
are small entities that may be affected by the rules and policies 
adopted.
---------------------------------------------------------------------------

    \166\ 13 CFR 121.201, NAICS code 517110.
    \167\ Id.
    \168\ Trends in Telephone Service, at Table 5.3.
    \169\ Id.
---------------------------------------------------------------------------

    17. Wireless Telecommunications Carriers (except Satellite). Since 
2007, the SBA has recognized wireless firms within this new, broad, 
economic census category.\170\ Prior to that time, such firms were 
within the now-superseded categories of Paging and Cellular and Other 
Wireless Telecommunications.\171\ Under the present and prior 
categories, the SBA has deemed a wireless business to be small if it 
has 1,500 or fewer employees.\172\ For this category, census data for 
2007 show that there were 11,163 establishments that operated for the 
entire year.\173\ Of this total, 10,791 establishments had employment 
of 999 or fewer employees and 372 had employment of 1000 employees or 
more.\174\ 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 action.
---------------------------------------------------------------------------

    \170\ 13 CFR 121.201, NAICS code 517210.
    \171\ 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.
    \172\ 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).
    \173\ 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).
    \174\ 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.\175\ Of these, an 
estimated 261 have 1,500 or fewer employees and 152 have more than 
1,500 employees.\176\ 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.
---------------------------------------------------------------------------

    \175\ Trends in Telephone Service, at Table 5.3.
    \176\ 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.'' \177\ The SBA has developed a small 
business size standard for this category, which is: All such firms 
having 1,500 or fewer employees.\178\ 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.
---------------------------------------------------------------------------

    \177\ 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.
    \178\ 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.\179\ Industry 
data indicate that, of 1,076 cable operators nationwide, all but eleven 
are small under this size standard.\180\ In addition, under the 
Commission's rules, a ``small system'' is a cable system serving 15,000 
or fewer subscribers.\181\ 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.\182\ Thus, under 
this second size standard, most cable systems are small and may be 
affected by rules adopted.
---------------------------------------------------------------------------

    \179\ 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).
    \180\ 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.
    \181\ See 47 CFR 76.901(c).
    \182\ 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 telecommunications services, such as satellite tracking, 
communications telemetry, and radar station operation.

[[Page 54208]]

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.'' 
\183\ 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.\184\ According to Census Bureau data for 2007, there were 
2,623 firms in this category that operated for the entire year.\185\ Of 
these, 2478 establishments had annual receipts of under $10 million and 
145 establishments had annual receipts of $10 million or more.\186\ 
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.
---------------------------------------------------------------------------

    \183\ 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.
    \184\ 13 CFR 121.201, NAICS code 517919.
    \185\ 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).
    \186\ 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.\187\
---------------------------------------------------------------------------

    \187\ 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. We are mitigating fee increases to small entities, and 
other entities, by, for example, raising the de minimis threshold from 
$10 to $500 and eliminating several regulatory fee categories (218-219 
MHz, broadcast auxiliaries, and satellite television construction 
permits) from regulatory fee requirements. In keeping with the 
requirements of the Regulatory Flexibility Act, 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

    26. None.

VIII. Ordering Clauses

    50. 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 and 
Further Notice of Proposed Rulemaking is hereby adopted.
    51. It is further ordered that, as provided in paragraph 54, this 
Report and Order shall be effective September 11, 2014.
    52. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Report and Order, including the Final Regulatory 
Flexibility Analysis in Appendix F, to the Chief Counsel for Advocacy 
of the U.S. Small Business Administration.

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure.

Federal Communications Commission.

Marlene H. Dortch,
Secretary.

Rule Changes

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

PART 1--PRACTICE AND PROCEDURE

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

    Authority:  15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 
155, 157, 225, 303(r), 309, 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, Pub. L. 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 601          $35.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                    35.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
    (c) Renewal Only (FCC 601 &           35.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                      35.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
------------------------------------------------------------------------

[[Page 54209]]

 
                           220 MHz Nationwide
------------------------------------------------------------------------
a) New, Renew/Mod (FCC 601 &              35.00  FCC, P.O. Box 979097,
 159).                                            St. Louis, MO 63197-
                                                  9000.
(b) New, Renew/Mod (Electronic            35.00  FCC, P.O. Box 979097,
 Filing) (FCC 601 & 159).                         St. Louis, MO 63197-
                                                  9000.
(c) Renewal Only (FCC 601 &               35.00  FCC, P.O. Box 979097,
 159).                                            St. Louis, MO 63197-
                                                  9000.
(d) Renewal Only (Electronic              35.00  FCC, P.O. Box 979097,
 Filing) (FCC 601 & 159).                         St. Louis, MO 63197-
                                                  9000.
------------------------------------------------------------------------
                 2. Microwave (47 CFR Pt. 101) (Private)
------------------------------------------------------------------------
(a) New, Renew/Mod (FCC 601 &             15.00  FCC, P.O. Box 979097,
 159).                                            St. Louis, MO 63197-
                                                  9000.
(b) New, Renew/Mod (Electronic            15.00  FCC, P.O. Box 979097,
 Filing) (FCC 601 & 159).                         St. Louis, MO 63197-
                                                  9000.
(c) Renewal Only (FCC 601 &               15.00  FCC, P.O. Box 979097,
 159).                                            St. Louis, MO 63197-
                                                  9000.
(d) Renewal Only (Electronic              15.00  FCC, P.O. Box 979097,
 Filing) (FCC 601 & 159).                         St. Louis, MO 63197-
                                                  9000.
------------------------------------------------------------------------
                         3. 218-219 MHz Service
------------------------------------------------------------------------
(a) New, Renew/Mod (FCC 601 &             80.00  FCC, P.O. Box 979097,
 159).                                            St. Louis, MO 63197-
                                                  9000.
(b) New, Renew/Mod (Electronic            80.00  FCC, P.O. Box 979097,
 Filing) (FCC 601 & 159).                         St. Louis, MO 63197-
                                                  9000.
(c) Renewal Only (FCC 601 &               80.00  FCC, P.O. Box 979097,
 159).                                            St. Louis, MO 63197-
                                                  9000.
(d) Renewal Only (Electronic              80.00  FCC, P.O. Box 979097,
 Filing) (FCC 601 & 159).                         St. Louis, MO 63197-
                                                  9000.
------------------------------------------------------------------------
                         4. Shared Use Services
------------------------------------------------------------------------
Land Mobile (Frequencies Below
 470 MHz--except 220 MHz):
    (a) New, Renew/Mod (FCC 601           10.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                    10.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
    (c) Renewal Only (FCC 601 &           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-
     601 & 159).                                  9000.
General Mobile Radio Service
    (a) New, Renew/Mod (FCC 605            5.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                     5.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
    (c) Renewal Only (FCC 605 &            5.00  FCC, P.O. Box 979097.
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                       5.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
Rural Radio (Part 22)
    (a) New, Additional                   10.00  FCC, P.O. Box 979097,
     Facility, Major Renew/Mod                    St. Louis, MO 63197-
     (Electronic Filing) (FCC                     9000.
     601 & 159).
    (b) Renewal, Minor Renew/             10.00  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             30.00  FCC, P.O. Box 979097,
     601 & 159).                                  St. Louis, MO 63197-
                                                  9000.
    (b) New, Renewal/Mod                  30.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     601 & 159).                                  9000.
    (c) Renewal Only (FCC 601 &           30.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                      30.00  FCC, P.O. Box 979097,
     (Electronic Only) (FCC 601                   St. Louis, MO 63197-
     & 159).                                      9000.
Marine Ship:
    (a) New, Renewal/Mod (FCC             15.00  FCC, P.O. Box 979097,
     605 & 159).                                  St. Louis, MO 63197-
                                                  9000.
    (b) New, Renewal/Mod                  15.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.

[[Page 54210]]

 
    (c) Renewal Only (FCC 605 &           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-
     605 & 159).                                  9000.
Aviation Aircraft:
    (a) New, Renew/Mod (FCC 605           10.00  FCC, P.O. Box 979097,
     & 159).                                      St. Louis, MO 63197-
                                                  9000.
    (b) New, Renew/Mod                    10.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
    (c) Renewal Only (FCC 605 &           10.00  FCC, P.O. Box 979097,
     159).                                        St. Louis, MO 63197-
                                                  9000.
    (d) Renewal Only                      10.00  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
5. Amateur Vanity Call Signs:
    (a) Initial or Renew (FCC              2.14  FCC, P.O. Box 979097,
     605 & 159).                                  St. Louis, MO 63197-
                                                  9000.
    (b) Initial or Renew                   2.14  FCC, P.O. Box 979097,
     (Electronic Filing) (FCC                     St. Louis, MO 63197-
     605 & 159).                                  9000.
6. CMRS Cellular/Mobile                 \2\ .18  FCC, P.O. Box 979084,
 Services (per unit) (FCC 159)                    St. Louis, MO 63197-
                                                  9000.
7. CMRS Messaging Services (per         \3\ .08  FCC, P.O. Box 979084,
 unit) (FCC 159).                                 St. Louis, MO 63197-
                                                  9000.
8. Broadband Radio Service               715     FCC, P.O. Box 979084,
 (formerly MMDS and MDS).                         St. Louis, MO 63197-
                                                  9000.
9. Local Multipoint                      715     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. Also, application fees may apply as
  detailed in Sec.   1.1102 of this chapter.
\2\ These are standard fees that are to be paid in accordance with Sec.
   1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with Sec.
   1.1157(b) of this chapter.


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


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

------------------------------------------------------------------------
 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 population.           3,475
    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 population.           2,750
    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 population.           1,800
    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 population.           2,025
    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 population.           3,175
    500,001-1,200,000                     5,050
     population.

[[Page 54211]]

 
    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 population.           3,925
    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,
                                                  63197-9000.
TV (47 CFR, part 73)
Digital TV (UHF and VHF
 Commercial Stations):
    1. Markets 1 thru 10.......          44,650  FCC, TV Branch, P.O.
                                                  Box 979084, St. Louis,
                                                  MO, 63197-9000.
    2. Markets 11 thru 25......          42,100
    3. Markets 26 thru 50......          26,975
    4. Markets 51 thru 100.....          15,600
    5. Remaining Markets.......           4,750
    6. Construction Permits....           4,750
Satellite UHF/VHF Commercial:
    1. All Markets.............           1,550  FCC Satellite TV, P.O.
                                                  Box 979084, St. Louis,
                                                  MO 63197-9000.
    2. Construction Permits....           1,300
Low Power TV, Class A TV, TV/               410  FCC, Low Power, P.O.
 FM Translator, & TV/FM Booster                   Box 979084, St. Louis,
 (47 CFR part 74).                                MO 63197-9000.
Broadcast Auxiliary............              10  FCC, Auxiliary, P.O.
                                                  Box 979084, St. Louis,
                                                  MO 63197-9000.
------------------------------------------------------------------------


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


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

------------------------------------------------------------------------
        Radio facilities           Fee amount            Address
------------------------------------------------------------------------
1. Microwave (Domestic Public         $15.00     FCC, P.O. Box 979097,
 Fixed) (Electronic Filing)                       St. Louis, MO 63197-
 (FCC Form 601 & 159).                            9000.
Carriers:
    1. Interstate Telephone              .00343  FCC, Carriers, P.O. Box
     Service Providers (per                       979084, St. Louis, MO
     interstate and                               63197-9000.
     international end-user
     revenues (see FCC Form 499-
     A).
------------------------------------------------------------------------


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


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

------------------------------------------------------------------------
                                   Fee amount            Address
------------------------------------------------------------------------
1. Cable Television Relay               $605     FCC, Cable, P.O. Box
 Service.                                         979084, St. Louis, MO
                                                  63197-9000.
2. Cable TV System, Including              0.99  .......................
 IPTV (per 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          $122,400  FCC, International,
 Orbit).                                          P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
Space Stations (Non-                    132,850  FCC, International,
 Geostationary Orbit).                            P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
Earth Stations: Transmit/                   295  FCC, International,
 Receive & Transmit only (per                     P.O. Box 979084, St.
 authorization or registration).                  Louis, MO 63197-9000.
------------------------------------------------------------------------


[[Page 54212]]

    (b) 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.
    The fee amount, per active 64 KB circuit or equivalent will be 
determined for each fiscal year.

------------------------------------------------------------------------
 International terrestrial and
   satellite (capacity as of       Fee amount            Address
       December 31, 2013)
------------------------------------------------------------------------
Terrestrial Common Carrier,        $0.21 per 64  FCC, International,
 Satellite Common Carrier,           KB 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.

------------------------------------------------------------------------
    Submarine cable systems
 (capacity as of Dec. 31, 2013)    Fee amount            Address
------------------------------------------------------------------------
< 2.5 Gbps.....................         $10,250  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
2.5 Gbps or greater, but less            20,500  FCC, International,
 than 5 Gbps.                                     P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
5 Gbps or greater, but less              40,975  FCC, International,
 than 10 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
10 Gbps or greater, but less             81,950  FCC, International,
 than 20 Gbps.                                    P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
20 Gbps or greater.............         163,900  FCC, International,
                                                  P.O. Box 979084, St.
                                                  Louis, MO 63197-9000.
------------------------------------------------------------------------


[FR Doc. 2014-21561 Filed 9-10-14; 8:45 am]
BILLING CODE 6712-01-P