[Federal Register Volume 80, Number 125 (Tuesday, June 30, 2015)]
[Proposed Rules]
[Pages 37206-37218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15971]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket Nos. 14-92; 15-121; 15-121; FCC 15-59]


Assessment and Collection of Regulatory Fees for Fiscal Year 2015

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) will revise its Schedule of Regulatory Fees in order to 
recover an amount of $339,844,000 that Congress has required the 
Commission to collect for fiscal year 2015.

DATES: Submit comments on or before June 22, 2015, and reply comments 
on or before July 6, 2015.

ADDRESSES: You may submit comments, identified by MD Docket No. 15-121, 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web site: http://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
     E-mail: [email protected]. Include MD Docket No. 15-121 in the 
subject line of the message.
     Mail: Commercial overnight mail (other than U.S. Postal 
Service Express Mail, and Priority Mail, must be sent to 9300 East 
Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th 
Street SW., Washington DC 20554.

For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

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

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking (NPRM), Report and Order, and Order, FCC 15-59, 
MD Docket No. 15-121, adopted on May 20, 2015 and released May 21, 
2015. The full text of this document is available for inspection and 
copying during normal business hours in the FCC Reference Center, 445 
12th Street SW., Room CY-A257, Portals II, Washington, DC 20554, and 
may also be purchased from the Commission's copy contractor, BCPI, 
Inc., Portals II, 445 12th Street SW., Room CY-B402, Washington, DC 
20554. Customers may contact BCPI, Inc. via their Web site, http://www.bcpi.com, or call 1-800-378-3160. This document is available in 
alternative formats (computer diskette, large print, audio record, and 
braille). Persons with disabilities who need documents in these formats 
may contact the FCC by email: [email protected] or phone: 202-418-0530 or 
TTY: 202-418-0432.

I. Procedural Matters

A. Ex Parte Rules Permit-But-Disclose Proceeding

    1. The Notice of Proposed Rulemaking (FY 2015 NPRM), Report and 
Order, and Order shall be treated as a ``permit-but-disclose'' 
proceeding in accordance with the Commission's ex parte rules. Persons 
making ex parte presentations must file a copy of any written 
presentation or a memorandum summarizing any oral presentation within 
two business days after the presentation (unless a different deadline 
applicable to the Sunshine period applies). Persons making oral ex 
parte presentations are reminded that memoranda summarizing the 
presentation must list all persons attending or otherwise participating 
in the meeting at which the ex parte presentation was made, and 
summarize all data presented and arguments made during the 
presentation. If the presentation consisted in whole or in part of the 
presentation of data or arguments already reflected in the presenter's 
written comments, memoranda, or other filings in the proceeding, the 
presenter may provide citations to such data or arguments in his or her 
prior comments, memoranda, or other filings (specifying the relevant 
page and/or paragraph numbers where such data or arguments can be 
found) in lieu of summarizing them in the memorandum. Documents shown 
or given to Commission staff during ex parte meetings are deemed to be 
written ex parte presentations and must be filed consistent with 
section 1.1206(b). In proceedings governed by section 1.49(f) or for 
which the Commission has made available a method of electronic filing, 
written ex parte presentations and memoranda summarizing oral ex parte 
presentations, and all attachments thereto, must be filed through the 
electronic comment filing system available for that proceeding, and 
must

[[Page 37207]]

be filed in their native format (e.g., .doc, .xml, .ppt, searchable 
.pdf). Participants in this proceeding should familiarize themselves 
with the Commission's ex parte rules.

B. Comment Filing Procedures

    2. Comments and Replies. Pursuant to sections 1.415 and 1.419 of 
the Commission's rules, 47 CFR 1.415, 1.419, interested parties may 
file comments and reply comments on or before the dates indicated on 
the first page of this document. Comments may be filed using: (1) the 
Commission's Electronic Comment Filing System (ECFS), (2) the Federal 
Government's eRulemaking Portal, or (3) by filing paper copies. See 
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 
(1998).
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/ or the Federal eRulemaking Portal: http://www.regulations.gov.
     Paper Filers: Parties who choose to file by paper must 
file an original and four copies of each filing. If more than one 
docket or rulemaking number appears in the caption of this proceeding, 
filers must submit two additional copies for each additional docket or 
rulemaking number.
    Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail. All filings must be addressed to the Commission's Secretary, 
Office of the Secretary, Federal Communications Commission.
    [ssquf] All hand-delivered or messenger-delivered paper filings for 
the Commission's Secretary must be delivered to FCC Headquarters at 445 
12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours are 
8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with 
rubber bands or fasteners. Any envelopes must be disposed of before 
entering the building.
    [ssquf] Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.
    [ssquf] U.S. Postal Service first-class, Express, and Priority mail 
must be addressed to 445 12th Street SW., Washington, DC 20554.
    People with Disabilities: To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
    3. Availability of Documents. Comments, reply comments, and ex 
parte submissions will be available for public inspection during 
regular business hours in the FCC Reference Center, Federal 
Communications Commission, 445 12th Street SW., CY-A257, Washington, DC 
20554. These documents will also be available free online, via ECFS. 
Documents will be available electronically in ASCII, Word, and/or Adobe 
Acrobat.
    4. Accessibility Information. To request information in accessible 
formats (computer diskettes, large print, audio recording, and 
Braille), send an email to [email protected] or call the Commission's 
Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice), 
(202) 418-0432 (TTY). This document can also be downloaded in Word and 
Portable Document Format (``PDF'') at: http://www.fcc.gov.

C. Initial Paperwork Reduction Act

    5. This NPRM, Report and Order, and Order document solicits 
possible proposed information collection requirements. The Commission, 
as part of its continuing effort to reduce paperwork burdens, invites 
the general public and the Office of Management and Budget (OMB) to 
comment on the possible proposed information collection requirements 
contained in this document, as required by the Paperwork Reduction Act 
of 1995, Public Law 104-13. In addition, pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4), the Commission seeks specific comment on how it can further 
reduce the information collection burden for small business concerns 
with fewer than 25 employees.

D. Initial Regulatory Flexibility Analysis

    6. An initial regulatory flexibility analysis (``IRFA'') is 
contained in Attachment E. Comments to the IRFA must be identified as 
responses to the IRFA and filed by the deadlines for comments on the 
Notice of Proposed Rulemaking (NPRM). The Commission will send a copy 
of this NPRM, including the IRFA, to the Chief Counsel for Advocacy of 
the Small Business Administration.

II. Introduction and Executive Summary

    7. In this Notice of Proposed Rulemaking, we seek comment on the 
Federal Communications Commission's (FCC's or Commission's) proposed 
regulatory fees for fiscal year (FY) 2015 to collect $339,844,000.\1\ 
In addition, we seek comment on the Puerto Rico Broadcasters 
Association's (PRBA's) request for relief from regulatory fee 
assessments on radio and television stations in Puerto Rico due to 
substantial financial hardships.\2\
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    \1\ The proposed regulatory fees include a proposed five percent 
reduction in regulatory fees for submarine cable systems and bearer 
circuits, reflected in Table C.
    \2\ See Letter from Messrs. Francisco Montero, Esq. and Jonathan 
R. Markman, Esq., Counsel for the Puerto Rico Broadcasters 
Association, filed in Docket No. 14-92, to Marlene Dortch, 
Secretary, Federal Communications Commission (Dec. 10, 2014) (PRBA 
Letter).
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III. Background

    8. 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.\3\ Regulatory fees, assessed each fiscal 
year, are to ``be derived by determining the full-time equivalent 
number of employees performing'' these activities, ``adjusted to take 
into account factors that are reasonably related to the benefits 
provided to the payer of the fee by the Commission's activities . . . 
.'' \4\ Regulatory fees recover direct costs, such as salary and 
expenses; indirect costs, such as overhead functions; and support 
costs, such as rent, utilities, or equipment.\5\ Regulatory fees also 
cover the costs incurred in regulating entities that are statutorily 
exempt from paying regulatory fees,\6\ entities whose regulatory fees 
are waived,\7\ and entities that provide nonregulated services. 
Congress sets the amount the Commission must collect each year in the 
Commission's fiscal year appropriations, and section 9(a)(2) of the 
Communications Act of 1934, as amended (Communications Act or Act) 
requires the Commission to collect fees sufficient to offset the amount 
appropriated.\8\ To calculate regulatory fees, the Commission allocates 
the total collection target, as mandated by Congress each year, across 
all regulatory fee categories. The allocation of fees to fee categories 
is based on the Commission's calculation of full time

[[Page 37208]]

employees (FTEs) \9\ in each regulatory fee category. Historically, the 
Commission has classified FTEs as ``direct'' if the employee is in one 
of the four ``core'' bureaus; otherwise, that employee was considered 
an ``indirect'' FTE.\10\ The total FTEs for each fee category includes 
the direct FTEs associated with that category, plus a proportional 
allocation of the indirect FTEs.
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    \3\ 47 U.S.C. 159(b)(1)(B).
    \4\ 47 U.S.C. 159(b)(1)(A).
    \5\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2004, Report and Order, 69 FR 41028 at 41030, para. 11 (July 7, 
2004) (FY 2004 Report and Order).
    \6\ 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.
    \7\ 47 CFR 1.1166.
    \8\ 47 U.S.C. 159(a)(2).
    \9\ 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.
    \10\ The core bureaus are the Wireline Competition Bureau (172 
FTEs), Wireless Telecommunications Bureau (91 FTEs), Media Bureau 
(155 FTEs), and part of the International Bureau (28 FTEs), totaling 
446 ``direct'' FTEs. The ``indirect'' FTEs are the employees from 
the following bureaus and offices: Enforcement Bureau, Consumer & 
Governmental Affairs Bureau, Public Safety and 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 1,037 ``indirect'' FTEs. These totals are as of 
Oct. 1, 2014 and exclude auctions FTEs.
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    9. Section 9 of the Communications Act requires the Commission to 
make certain changes (i.e., mandatory amendments) to the regulatory fee 
schedule if it ``determines that the Schedule requires amendment to 
comply with the requirements'' of section 9(b)(1)(A).\11\ In addition, 
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.'' \12\ These ``permitted amendments'' require 
Congressional notification.\13\ The changes in fees resulting from both 
mandatory and permitted amendments are not subject to judicial 
review.\14\
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    \11\ 47 U.S.C. 159(b)(3).
    \12\ 47 U.S.C. 159(b)(3).
    \13\ 47 U.S.C. 159(b)(4)(B).
    \14\ 47 U.S.C. 159(b)(3). But see Comsat Corp. v. FCC, 114 F.3d 
223, 227 (D.C. Cir. 1997) (``Where, as here, we find that the 
Commission has acted outside the scope of its statutory mandate, we 
also find that we have jurisdiction to review the Commission's 
action.'')
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    10. The Commission continues to improve the regulatory fee process 
by ensuring a more equitable distribution of the regulatory fee burden 
among categories of Commission licensees under the statutory framework 
in section 9 of the Communications Act. For example, in 2013, the 
Commission updated the FTE allocations to more accurately align 
regulatory fees with the costs of Commission oversight and 
regulation,\15\ as recommended in the GAO Report, a report issued by 
the Government Accountability Office (GAO) in 2012.\16\ The Commission 
also reallocated some FTEs from the International Bureau as 
``indirect.'' \17\ Subsequently, in the FY 2014 Report and Order, the 
Commission adopted the new toll free number regulatory fee category 
\18\ and, in the accompanying FY 2014 Further Notice of Proposed 
Rulemaking, the Commission sought additional comment on a new 
regulatory fee category for DBS.\19\ In our Report and Order, we now 
add a subcategory for DBS providers in the cable television and IPTV 
regulatory fee category based on our finding that Media Bureau FTEs 
work on issues and proceedings that include DBS as well as other 
multichannel video programming distributors (MVPDs).
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    \15\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2013, Report and Order, MD Docket No. 13-140, 78 FR 52433, at 
52436-52437 at paras. 10-15 (August 23, 2013) (FY 2013 Report and 
Order).
    \16\ In 2012, the GAO concluded that the Commission should 
conduct an overall analysis of the regulatory fee categories and 
perform an updated FTE analysis by fee category. GAO ``Federal 
Communications Commission Regulatory Fee Process Needs to be 
Updated,'' GAO-12-686 (Aug. 2012) (GAO Report) at 36, (available at 
http://www.gao.gov/products/GAO-12-686).
    \17\ FY 2013 Report and Order, 78 FR 52433, 52436-52438 at 
paras. 12-21, (August 23, 2013) (FY 2013 Report and Order).
    \18\ FY 2014 Report and Order, 79 FR 54190 at 54195-54196 at 
paras. 28-31, (September 11, 2014) (FY 2014 Report and Order).
    \19\ FY 2014 Further Notice of Proposed Rulemaking, 79 FR 63883 
at 63885-63886 at paras. 10-15, (October 27, 2014) (FY 2014 Further 
Notice of Proposed Rulemaking).
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IV. Discussion

A. Notice of Proposed Rulemaking

1. Proposed Regulatory Fees
    11. We propose to collect $339,844,000 in regulatory fees for FY 
2015, pursuant to section 9 of the Communications Act.\20\ Of this 
amount, we project approximately $21.3 million (6.28 percent of the 
total FTE allocation) in fees from the International Bureau regulatees; 
\21\ $69.3 million (20.40 percent of the total FTE allocation) in fees 
from the Wireless Telecommunications Bureau regulatees; \22\ $131.1 
million (38.57 percent of the total FTE allocation) from Wireline 
Competition Bureau regulatees; \23\ and $118.1 million (34.75 percent 
of the total FTE allocation) from the Media Bureau regulatees.\24\
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    \20\ 47 U.S.C. 159.
    \21\ Includes satellites, earth stations, submarine cable, and 
bearer circuits.
    \22\ Includes Commercial Mobile Radio Service (CMRS), CMRS 
messaging, Broadband Radio Service/Local Multipoint Distribution 
Service (BRS/LMDS), and multi-year wireless licensees.
    \23\ Includes Interstate Telecommunications Service Providers 
(ITSP) and toll free numbers.
    \24\ Includes AM radio, FM radio, television, low power/FM, 
cable and IPTV, DBS, and Cable Television Relay Service (CARS) 
licenses.
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    12. These regulatory fees are mandated by Congress and are 
collected ``to recover the costs of . . . enforcement activities, 
policy and rulemaking activities, user information services, and 
international activities.'' \25\ We seek comment on the proposed 
regulatory fee schedule in Table C.
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    \25\ 47 U.S.C. 159(a).
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    13. This proposed fee schedule in Table C includes a new regulatory 
fee for DBS (a subcategory in the cable television and IPTV category) 
adopted in the Report and Order portion of this document.\26\ We 
estimate the number of payment units to be 34,000,000 and propose 
setting the initial rate at 12 cents per year, or one cent per 
month.\27\ Because DBS regulatory fees offset cable television and IPTV 
fees, the cable television and IPTV rate would be reduced from $1.01 to 
$0.95 per subscriber at this rate for DBS. We seek comment on this 
rate. We also seek comment on whether setting the initial rate for DBS 
at one cent per customer per month would address DIRECTV and DISH's 
contention that a ``fee increase will cause rate shock.'' \28\
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    \26\ See section III.B.3.
    \27\ When the Commission added IPTV to the cable television 
category, it set the initial rate for IPTV equal to the cable 
television rate. See FY 2013 Report and Order, 78 FR 52433 at 52443-
52444 at paras. 35-36, (August 23, 2013) (FY 2013 Report and Order). 
Last year, we invited ``further comment on whether regulatory fees 
paid by DBS providers should be included in the cable television and 
IPTV category and assessed in the same manner.'' FY 2014 NPRM, 79 FR 
37982 at 37991 at para. 49 (July 3, 2014) (FY 2014 Notice of 
Proposed Rulemaking). In the FY 2014 Further Notice of Proposed 
Rulemaking, we sought comment on ``whether DBS providers should pay 
a regulatory fee . . . at a much lower rate than that for other 
MVPDs, such as one-tenth of the anticipate revenue if DBS were 
combined with MVPD.'' FY 2014 Further Notice of Proposed Rulemaking, 
79 FR 63883 at 63886 at para. 13 (October 27, 2014) (FY 2014 Further 
Notice of Proposed Rulemaking).
    \28\ DIRECTV and DISH Comments at 11.
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    14. The proposed fee schedule also includes fees for toll free 
numbers (a subcategory in the ITSP category) adopted in our FY 2014 
Report and Order.\29\ We estimate the number of assessable toll-free 
numbers to be 36.5 million and propose setting the rate at 12 cents per 
year, or one cent per month.\30\ Because toll-free number

[[Page 37209]]

regulatory fees offset ITSP fees, the ITSP rate would be reduced from 
0.00340 to 0.00329. We seek comment on this estimate and this rate.
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    \29\ See FY 2014 Report and Order, 79 FR 54190 at 54195 at 
paras. 28-31 (September 11, 2014) (FY 2014 Report and Order).
    \30\ When the Commission first sought comment on assessing 
Responsible Organizations (or RespOrgs), it discussed a rate of one 
penny per month per number and estimated that regulatory fees for 
toll-free numbers would approximate $4 million at that rate. See FY 
2014 NPRM, 79 FR 37982 at 37993 at para 57 (July 3, 2014) (FY 2014 
Notice of Proposed Rulemaking).
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    15. In addition, the annual regulatory fees eliminated in the FY 
2014 Report and Order will no longer be included in the regulatory fee 
schedule, i.e., the annual regulatory fee for Broadcast Auxiliaries and 
Satellite TV Construction Permit, and one multi-year regulatory fee 
category (218-219 MHz). The projected revenues that would otherwise 
have been collected from the three regulatory fee categories that were 
eliminated last year are allocated proportionally to their respective 
service categories in the proposed regulatory fees in Table C. 
Specifically, the projected revenues from the 218-219 MHz fee category 
are proportionally allocated to the wireless service categories and the 
Satellite Television Construction Permit and Broadcast Auxiliary fee 
categories are proportionally allocated to the media service 
categories.
    16. We also seek comment on revising the apportionment between 
International Bureau licensees to reduce the proportion paid by the 
submarine cable/terrestrial and satellite bearer circuits fee 
categories by approximately five percent. In the FY 2014 Report and 
Order, we concluded that the regulatory fee assessment for the 
submarine cable/terrestrial and satellite bearer circuits fee 
categories did not fairly take into account the Commission's minimal 
oversight and regulation of the industry and we reduced the regulatory 
fee apportionment by five percent and stated that we would revisit the 
issue to determine if additional adjustment is warranted.\31\ 
Currently, the submarine cable and bearer circuit category is allocated 
31.36 percent of the International Bureau regulatory fees. We propose a 
five percent decrease based on our tentative conclusion that the fee 
remains excessive relative to the minimal Commission oversight and 
regulation of this industry.
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    \31\ We adopted a reallocation for submarine cable systems and 
bearer circuits in the FY 2014 Report and Order and indicated that 
we would revisit this issue in future proceedings to determine if 
additional adjustment would be warranted. See FY 2014 Report and 
Order, 79 FR 54190 at 54192-54193 at para. 14 (September 11, 2014) 
(FY 2014 Report and Order).
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    17. We also seek comment on whether the Commission should review 
the apportionment of regulatory fees among broadcasters. First, we 
expect to collect $28,356,435 from radio broadcasters and $23,650,250 
from television broadcasters in fiscal year 2015. We estimate that 
10,226 radio broadcasters and 4,754 television broadcasters will pay 
these regulatory fees \32\ and note that among the broadcasters that 
are statutorily exempt from paying fees, noncommercial education (NCE) 
radio stations significantly outnumber NCE television stations.\33\ 
Nonetheless, should the Commission reexamine the number of FTEs devoted 
to the regulation of radio versus television broadcasters and adjust 
the fee paid by radio and television broadcasters to more accurately 
take into account factors related to ``the benefits provided to the 
payor of the fee by the Commission's activities''? \34\ Second, we 
currently assess regulatory fees on television broadcasters based on 
the ranking of the market they serve (market nos. 1-10; 11-25; 26-50; 
51-100; >100) but assess regulatory fees on radio broadcasters based on 
the population they serve (<25,000; 25,001-75,000; 75,001-150,000; 
150,001-500,000; 500,001-1,200,000; 1,200,001-3,000,000; >3,000,000). 
Do the dividing points for higher fee levels for both television and 
radio broadcasters remain appropriate? Should we adjust the dividing 
points for radio broadcasters to account for demographic change? Should 
we assess radio broadcasters based on market served rather than 
population served, which may provide more stability and predictability 
for radio broadcasters? Third, we currently divide radio broadcasters 
into six categories by type and class of service (AM class A; AM class 
B; AM class C; AM class D; FM classes A, B1, & C3; FM classes B, C, C0, 
C1, & C2). We note that FM class B stations pay more than FM class A 
stations at every population level because FM class A stations serve 
the smallest areas of all FM station classes, whereas this relationship 
is inverted among the AM stations since AM class A stations serve the 
largest areas among AM stations. But no single ratio apportions 
regulatory fees among AM and FM radio categories; for example, AM class 
A stations sometimes pay more than FM class A stations (when they serve 
fewer than 500,000 people) but other times pay more (when they serve 
more than 500,000 people).\35\ Should we consolidate these categories 
and reapportion the regulatory fees paid by each category such that 
regulatory fees collected are based either on population served or rank 
of market served? We seek comment on these and related questions 
concerning the apportionment of regulatory fees among broadcasters. We 
tentatively conclude that changes made to the assessment of regulatory 
fees on broadcasters would constitute a permitted amendment \36\ and 
therefore would not likely apply to FY 2015 regulatory fees.
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    \32\ See Table B, AM Class, A, B, C, D, and FM categories, total 
10,226; TV digital markets 1-100 + remaining markets + the LPTV 
category, total 4,754.
    \33\ As of March 31, 2015, there were 5110 licensed NCE 
(including low power FM) radio stations and 395 licensed NCE 
television stations. See Broadcast Station Totals as of March 31, 
2015, News Release (rel. Apr. 9, 2015).
    \34\ 47 U.S.C. 159(b)(1)(A) (providing for adjustment of the FTE 
allocation to ``take into account factors that are reasonably 
related to the benefits provided to the payor of the fee by the 
Commission's activities, including such factors as service area 
coverage, shared use versus exclusive use, and other factors that 
the Commission determines are necessary in the public interest.'')
    \35\ Or compare AM class B and class D stations. In areas with 
fewer than 25,000 people, class B stations pay $25 less than class D 
stations. In areas with 25,001-75,000, they pay $300 more. Less 
again at 75,001-150,000 people; more again above that. See Table C.
    \36\ 47 U.S.C. 159(b)(3).
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    18. In addition, we seek comment generally on other regulatory fee 
reform measures we can adopt.\37\ For example, should we raise the 
earth station regulatory fees and thereby reduce satellite fees? \38\ 
Are there specific divisions within bureaus or offices that should be 
allocated as direct instead of indirect? \39\ We welcome comment on 
these issues and other proposals for regulatory fee reform.
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    \37\ These issues here were raised in an ex parte filed by SIA. 
See Letter from Tom Stroup, President, Satellite Industry 
Association, to Marlene H. Dortch, Secretary, FCC (Apr. 30, 2015). 
We welcome any suggestions from commenters on regulatory fee reform.
    \38\ Earth station fees were increased by 7.5 percent last year. 
See FY 2014 Report and Order, 79 FR 54190 at 54193 at para. 15 
(September 11, 2014) (FY 2014 Report and Order).
    \39\ This issue was raised previously; see FY 2014 NPRM, 79 FR 
37982 at 37987-37988 at paras. 28-33 (July 3, 2014) (FY 2014 Notice 
of Proposed Rulemaking).
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2. Puerto Rico Broadcasters Association's Request for Regulatory Fee 
Relief
    19. On December 10, 2014, PRBA filed a letter seeking regulatory 
fee relief for the radio broadcasters in the Commonwealth of Puerto 
Rico. PRBA requests that the Commission take into consideration 
significant population declines and economic factors when determining 
the regulatory fees owed by radio station operators in Puerto Rico. In 
particular, PRBA requests that the Commission use more recent figures 
to determine the radio station population

[[Page 37210]]

count for radio stations in Puerto Rico.\40\ PRBA argues that economic 
challenges \41\ and population decline \42\ in Puerto Rico warrant 
regulatory relief. Specifically, PRBA contends that Puerto Rico has an 
unprecedented unemployment rate of almost 14 percent, well above the 
overall United States unemployment rate and much higher than the two 
states with the next highest unemployment rates.\43\ In addition, PRBA 
asserts that the per capita income in Puerto Rico \44\ is half of the 
per capita income of the state with the lowest per capita income \45\ 
and over one-third of the households in Puerto Rico receive food 
stamps.\46\ PRBA argues that due to the economic hardship in the 
territory, the population has decreased in the past nine years by 
almost six percent because of migration to the mainland United States 
and a declining birthrate.\47\ Finally, PRBA contends that the radio 
listening market is limited because it is restricted to listeners 
within the boundaries of the island.\48\
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    \40\ PRBA Letter at 2-4.
    \41\ PRBA Letter at 2-3.
    \42\ PRBA Letter at 3-4.
    \43\ PRBA Letter at 2; http://www.ncsl.org/research/labor-and-employment/state-unemployment-update.aspx for the December 2014 
unemployment rates for each state. The unemployment rate for Puerto 
Rico is 13.7 percent; the next highest unemployment rates are those 
of the District of Columbia (7.3 percent), Mississippi (7.2 
percent), and California, (7 percent).
    \44\ See http://www.census.gov/newsroom/press-releases/2014/cb14-17.html (Puerto Rico median household income 2010-2012 was 
$19,518.)
    \45\ See https://www.census.gov/hhes/www/income/data/statemedian/ (Mississippi median income 2010-2013 was $41,664).
    \46\ PRBA Letter at 2-3. Instead of the Supplemental Nutrition 
Assistance Program (SNAP), qualifying Puerto Rican residents receive 
Nutrition Assistance for Puerto Rico (NAP).
    \47\ PRBA Letter at 3.
    \48\ PRBA Letter at 5.
---------------------------------------------------------------------------

    20. Every ten years the Commission updates its radio station 
population counts to reflect nationwide changes in the population using 
the ``block level census data'' from the U.S. Census. PRBA asks the 
Commission to examine population data every five years instead of every 
10 years to increase the accuracy of the population counts in Puerto 
Rico. We are unable to adopt PRBA's suggestion because the ``block 
level census data'' is only available from the U.S. Census Bureau every 
10 years. Further, even if such figures were available every five 
years, they would be unlikely to provide a basis for fee relief for 
radio stations in Puerto Rico because fees on AM and FM radio stations 
are not assessed at granular levels but instead over a wide strata of 
the population.\49\
---------------------------------------------------------------------------

    \49\ The regulatory fee rate starts at population counts of 
25,000 and below, and then increases to population counts of 25,001-
75,000; 75,001-150,000; 150,001-500,000; 500,001-1,200,000; 
1,200,001-3,000,000; and above 3,000,000.
---------------------------------------------------------------------------

    21. PRBA requests that the Commission provide relief through the 
reduction of regulatory fees for Puerto Rico radio broadcasters due to 
economic hardship, unique geography, and declining population. We seek 
comment on this proposal and on whether the unique circumstances 
described by PRBA should result in one of the following actions: (i) 
Moving the Puerto Rico market stations to a different rate (e.g., 
reducing them down to a lower population strata) because of the 
downward trend in the population and other factors; (ii) creating a 
separate fee category for the Puerto Rico market at a lower rate; or 
(iii) adopting a special provision in our rules for economically 
depressed geographic areas to seek a ``fast track'' waiver of 
regulatory fees. For any of these actions, commenters should also 
discuss how such a process could satisfy the requirement to demonstrate 
that compelling and extraordinary circumstances outweigh the public 
interest in recouping the Commission's regulatory costs.
    22. We recognize that fee relief is ordinarily processed through a 
waiver request.\50\ PRBA has not identified whether every station in 
Puerto Rico is financially unable to pay the regulatory fee, and 
although we recognize that preparing and filing waiver requests, 
including supporting financial information for each radio station in 
Puerto Rico, may be administratively and financially burdensome, 
granting across-the-board relief for Puerto Rican stations may shift 
the burden of regulatory fees from stations better able to afford them 
to those less able. Therefore, we also seek comment on whether the 
ordinary waiver process is sufficient here, making clear that a 
regulatee may raise the same issues that PRBA has raised whenever it 
files a waiver request.
---------------------------------------------------------------------------

    \50\ Fees may be waived, reduced or deferred in specific 
instances, on a case-by-case basis, where good cause is shown and 
where waiver, reduction or deferral of the fee would promote the 
public interest. 47 U.S.C. 159(d); 47 CFR 1.1166. Fee relief may be 
granted based on a ``sufficient showing of financial hardship.'' See 
Implementation of Section 9 of the Communications Act, Assessment 
and Collection of Regulatory Fees for the 1994 Fiscal Year, 
Memorandum Opinion and Order, 60 FR 34902 at 34903 at para. 12 (July 
5, 1995) (FY 1994 Regulatory Fees Memorandum of Opinion and Order). 
In such matters, however, ``[m]ere allegations or documentation of 
financial loss, standing alone,'' do not suffice and ``it [is] 
incumbent upon each regulatee to fully document its financial 
position and show that it lacks sufficient funds to pay the 
regulatory fee and to maintain its service to the public.'' Id.
---------------------------------------------------------------------------

V. Procedural Matters

A. Payment of Regulatory Fees

1. Revised Credit Card Transaction Levels
    23. In accordance with U.S. Treasury Announcement No. A-2014-04 
(July 2014), the amount that can be charged on a credit card for 
transactions with federal agencies has been reduced to $24,999.99.\51\ 
Previously, the credit card limit was $49,999.99. This lower 
transaction amount is effective June 1, 2015. Transactions greater than 
$24,999.99 will be rejected. This limit applies to single payments or 
bundled payments of more than one bill. Multiple transactions to a 
single agency in one day may be aggregated and treated as a single 
transaction subject to the $24,999.99 limit. Customers who wish to pay 
an amount greater than $24,999.99 should consider available electronic 
alternatives such as Visa or MasterCard debit cards, Automated Clearing 
House (ACH) debits from a bank account, and wire transfers. Each of 
these payment options is available after filing regulatory fee 
information in Fee Filer. Further details will be provided regarding 
payment methods and procedures at the time of FY 2015 regulatory fee 
collection.
---------------------------------------------------------------------------

    \51\ Treasury Financial Manual, Announcement No. A-2014-04 (July 
2014).
---------------------------------------------------------------------------

    24. Customers who owe an amount on a bill, debt, or other 
obligation due to the federal government are prohibited from splitting 
the total amount due into multiple payments. Splitting an amount owed 
into several payment transactions violates the credit card network and 
Fiscal Service rules. An amount owed that exceeds the Fiscal Service 
maximum dollar amount, $24,999.99, may not be split into two or more 
payment transactions in the same day by using one or multiple cards. 
Also, an amount owed that exceeds the Fiscal Service maximum dollar 
amount may not be split into two or more transactions over multiple 
days by using one or more cards.
2. De Minimis Regulatory Fees
    25. Regulatees whose total FY 2015 regulatory fee liability, 
including all categories of fees for which payment is due, is $500 or 
less, are exempted from payment of FY 2015 regulatory fees. The de 
minimis threshold of $500 or less applies only to filers of annual 
regulatory fees (not regulatory fees paid through multi-year filings) 
between October 1 and September 30. If the sum

[[Page 37211]]

total of all annual regulatory fee obligations is $500 or less, the 
regulatee is exempt from paying regulatory fees for that fiscal year. 
This de minimis status is not a permanent exemption from regulatory 
fees. Rather, each regulatee will need to reevaluate their total fee 
liability each fiscal year to determine whether they meet the de 
minimis exemption.
3. Standard Fee Calculations and Payment Dates
    26. 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, 2014 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, 2014. In 
instances where a permit or license is transferred or assigned after 
October 1, 2014, 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, 
2014. In instances where a permit or license is transferred or assigned 
after October 1, 2014, 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.\52\
---------------------------------------------------------------------------

    \52\ 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, 2014. The number of subscribers, units, 
or telephone numbers on December 31, 2014 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, 2014, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
     The first eight regulatory fee categories in our Schedule 
of Regulatory Fees (see Table 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. We include these fee 
categories in our rulemaking (see Table C) to publicize our estimates 
of the number of ``small multi-year wireless'' licenses that will be 
renewed or newly obtained in FY 2015.
     Multichannel Video Programming Distributor Services (cable 
television operators, IPTV providers, DBS providers, and CARS 
licensees): Regulatory fees must be paid for the number of basic cable 
tier subscribers, IPTV subscribers, and DBS subscribers as of December 
31, 2014.\53\ Regulatory fees also must be paid for CARS licenses that 
were granted on or before October 1, 2014. In instances where a permit 
or license is transferred or assigned after October 1, 2014, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
---------------------------------------------------------------------------

    \53\ Cable television system operators, DBS providers, and IPTV 
providers 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/providers may 
base their count on ``a typical day in the last full week'' of 
December 2014, rather than on a count as of December 31, 2014.
---------------------------------------------------------------------------

     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, 2014. In instances where a permit 
or license is transferred or assigned after October 1, 2014, 
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, 2014. In instances where a license is transferred or assigned after 
October 1, 2014, responsibility for payment rests with the holder of 
the license as of the fee due date. For regulatory fee purposes, the 
allocation in FY 2015 will be 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, 2014 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, 2014. 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, 2014, 
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 2015 will remain at 87.6 percent for submarine cable 
and 12.4 percent for satellite/terrestrial facilities.

VI. Additional Tables

                       Table A--List of Commenters
------------------------------------------------------------------------
             Commenter                          Abbreviation
------------------------------------------------------------------------
                            Initial Comments
------------------------------------------------------------------------
DIRECTV, LLC and DISH Network,      DIRECTV and DISH.
 L.L.C..
ITTA--The Voice of Mid-Size         ITTA.
 Communications Companies.
National Cable and                  NCTA and ACA.
 Telecommunications Association
 and the American Cable
 Association.
Satellite Industry Association....  SIA.
SMS/800, Inc......................  SMS/800.
------------------------------------------------------------------------

[[Page 37212]]

 
                             Reply Comments
------------------------------------------------------------------------
CenturyLink.......................  CenturyLink.
DIRECTV, LLC and DISH Network,      DIRECTV and DISH.
 L.L.C..
Hypercube Telecom, LLC............  Hypercube.
National Cable and                  NCTA and ACA.
 Telecommunications Association
 and the American Cable
 Association.
------------------------------------------------------------------------


                                         Table B--Calculation of FY 2015 Revenue Requirements and Pro-Rata Fees
 [Regulatory fees for the first seven categories below are collected by the Commission in advance to cover the term of the license and are submitted at
                                                           the time the application is filed.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Computed   Rounded FY
                                                        FY 2015 Payment               FY 2014      Pro-rated  FY    FY 2015      2015       Expected FY
                     Fee category                            units         Years      Revenue      2015  revenue  regulatory  regulatory   2015 revenue
                                                                                     estimate       requirement       fee         fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)................................              1,800      10         595,000         543,780          30          30         540,000
PLMRS (Shared use)...................................             31,000      10       3,000,000       3,121,700          10          10       3,100,000
Microwave............................................             12,000      10       2,550,000       2,537,640          20          20       2,520,000
Marine (Ship)........................................              6,300      10         780,000         951,615          15          15         945,000
Aviation (Aircraft)..................................              4,200      10         420,000         422,940          10          10         420,000
Marine (Coast).......................................                490      10         165,000         172,701          35          35         171,500
Aviation (Ground)....................................                460      10         153,000         162,127          35          35         161,000
AM Class A \4\.......................................                 65       1         274,700         278,184       4,280       4,275         277,875
AM Class B \4\.......................................              1,505       1       3,410,900       3,447,842       2,291       2,300       3,461,500
AM Class C \4\.......................................                889       1       1,212,750       1,230,932       1,385       1,375       1,222,375
AM Class D \4\.......................................              1,492       1       4,033,300       4,169,282       2,794       2,800       4,177,600
FM Classes A, B1 & C3 \4\............................              3,132       1       8,466,575       8,594,443       2,744       2,750       8,613,000
FM Classes B, C, C0, C1 & C2 \4\.....................              3,143       1      10,437,175      10,444,503       3,323       3,325      10,450,475
AM Construction Permits \1\..........................                 29       1          17,700          17,110         590         590          17,110
FM Construction Permits \1\..........................                182       1         138,750         136,500         750         750         136,500
Satellite TV.........................................                127       1         196,850         198,228       1,561       1,550         196,850
Digital TV Markets 1-10..............................                134       1       6,161,700       6,223,883      46,447      46,450       6,224,300
Digital TV Markets 11-25.............................                137       1       5,809,800       5,871,584      42,858      42,850       5,870,450
Digital TV Markets 26-50.............................                181       1       4,909,450       4,959,846      27,402      27,400       4,959,400
Digital TV Markets 51-100............................                283       1       4,524,000       4,570,532      16,150      16,150       4,570,450
Digital TV Remaining Markets.........................                379       1       1,805,000       1,822,393       4,808       4,800       1,819,200
Digital TV Construction Permits \1\..................                  2       1          23,750           9,600       4,800       4,800           9,600
LPTV/Translators/Boosters/Class A TV.................              3,640       1       1,570,300       1,576,156         433         435       1,583,400
CARS Stations........................................                300       1         196,625         196,365         655         655         196,500
Cable TV Systems, including IPTV.....................         64,500,000       1      64,746,000      61,054,410      .94658         .95      61,275,000
Direct Broadcast Satellite (DBS).....................         34,000,000       1  ..............       4,108,560         .12         .12       4,080,000
Interstate Telecommunication Service Providers.......     38,800,000,000       1     131,369,000     127,764,132   0.0032929     0.00329     127,652,000
Toll Free Numbers....................................         36,500,000       1  ..............       4,410,660      0.1208        0.12       4,380,000
CMRS Mobile Services (Cellular/Public Mobile)........        347,000,000       1      60,300,000      59,404,386      0.1712        0.17      58,990,000
CMRS Messag. Services................................          2,600,000       1         232,000         208,000      0.0800       0.080         208,000
BRS \2\..............................................                890       1         643,500         560,144         629         630         560,700
LMDS.................................................                375       1         135,850         236,016         629         630         236,250
Per 64 kbps Int'l Bearer Circuits....................          3,800,000       1         941,640         840,033       .2211         .22         836,000
Terrestrial (Common) & Satellite (Common & Non-
 Common) \5\.........................................
Submarine Cable Providers (see chart in Table C) \3\               39.19       1       6,586,731       5,934,424     151,437     151,425       5,933,967
 \5\.................................................
Earth Stations \5\...................................              3,300       1       1,003,000       1,129,854         342         340       1,122,000
Space Stations (Geostationary) \5\...................                 95       1      11,505,600      12,713,879     133,830     133,825      12,713,375
Space Stations (Non-Geostationary) \5\...............                  5       1         797,100         881,125     176,225     176,225         881,125
                                                      --------------------------------------------------------------------------------------------------
    ****** Total Estimated Revenue to be Collected...  .................  ......     339,847,246     340,905,507  ..........  ..........     340,512,502
                                                      --------------------------------------------------------------------------------------------------
    ****** Total Revenue Requirement.................  .................  ......     339,844,000     339,844,000  ..........  ..........     339,844,000
    Difference.......................................  .................  ......           3,246       1,061,507  ..........  ..........         668,502
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table B.

[[Page 37213]]

 
\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 were so small
  that there was no need to offset them with increases in the revenue totals for AM and FM radio stations, respectively. Reductions in the Digital (VHF/
  UHF) Construction Permit revenues, however, were 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 Table C lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from
  the adoption of the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd 4208 (2009).
\4\ The fee amounts listed in the column entitled ``Rounded New FY 2015 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
  service. The actual FY 2015 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 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 percent. This allocation
  reduction of 5 percent resulted in an increase in the allocation for the satellite and earth station fee categories, and a fee rate increase from FY
  2014.


 Table C--Proposed Regulatory Fees; FY 2015 Schedule of Regulatory Fees
 [Regulatory fees for the first eight categories below are collected by
   the Commission in advance to cover the term of the license and are
            submitted at the time the application is filed.]
------------------------------------------------------------------------
                                                 Annual regulatory fee
                Fee category                           (U.S. $)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR   30.
 part 90).
Microwave (per license) (47 CFR part 101)...  20.
Marine (Ship) (per station) (47 CFR part 80)  15.
Marine (Coast) (per license) (47 CFR part     35.
 80).
Rural Radio (47 CFR part 22) (previously      10.
 listed under the Land Mobile category).
PLMRS (Shared Use) (per license) (47 CFR      10.
 part 90).
Aviation (Aircraft) (per station) (47 CFR     10.
 part 87).
Aviation (Ground) (per license) (47 CFR part  35.
 87).
CMRS Mobile/Cellular Services (per unit) (47  .17.
 CFR parts 20, 22, 24, 27, 80 and 90).
CMRS Messaging Services (per unit) (47 CFR    .08.
 parts 20, 22, 24 and 90).
Broadband Radio Service (formerly MMDS/MDS)   630.
 (per license) (47 CFR part 27).
Local Multipoint Distribution Service (per    630.
 call 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............................  46,450.
    Markets 11-25...........................  42,850.
    Markets 26-50...........................  27,400.
    Markets 51-100..........................  16,150.
    Remaining Markets.......................  4,800.
    Construction Permits....................  4,800.
Satellite Television Stations (All Markets).  1,550.
Low Power TV, Class A TV, TV/FM Translators   435.
 & Boosters (47 CFR part 74).
CARS (47 CFR part 78).......................  655.
Cable Television Systems (per subscriber)     .95.
 (47 CFR part 76), Including IPTV.
Direct Broadcast Service (DBS) (per           .12.
 subscriber) (as defined by section 602(13)
 of the Act).
Interstate Telecommunication Service          .00329.
 Providers (per revenue dollar).
Toll Free (per toll free subscriber) (47 CFR  .12.
 section 52.101 (f) of the rules).
Earth Stations (47 CFR part 25).............  340.
Space Stations (per operational station in    133,825.
 geostationary orbit) (47 CFR part 25) also
 includes DBS Service (per operational
 station) (47 CFR part 100).
Space Stations (per operational system in     176,225.
 non-geostationary orbit) (47 CFR part 25).
International Bearer Circuits--Terrestrial/   .22.
 Satellites (per 64KB circuit).
International Bearer Circuits--Submarine      See Table Below.
 Cable.
------------------------------------------------------------------------


                                                          FY 2015 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           FM Classes B,
                    Population served                       AM Class  A     AM Class  B     AM Class  C     AM Class  D    FM Classes A,   C, C0,  C1 &
                                                                                                                             B1  & C3           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 37214]]


                   FY 2015 Schedule of Regulatory Fees
            [International Bearer Circuits--Submarine Cable]
------------------------------------------------------------------------
 Submarine cable systems (capacity as of December 31,
                        2014)                              Fee amount
------------------------------------------------------------------------
<2.5 Gbps............................................             $9,475
2.5 Gbps or greater, but less than 5 Gbps............             18,925
5 Gbps or greater, but less than 10 Gbps.............             37,850
10 Gbps or greater, but less than 20 Gbps............             75,725
20 Gbps or greater...................................            151,425
------------------------------------------------------------------------

    In order to calculate individual service fees for FY 2015, we 
adjusted FY 2014 payment units for each service to more accurately 
reflect expected FY 2015 payment liabilities. We obtained our updated 
estimates through a variety of means. For example, we used Commission 
licensee data bases, actual prior year payment records and industry and 
trade association projections when available. The databases we 
consulted include our Universal Licensing System (ULS), International 
Bureau Filing System (IBFS), Consolidated Database System (CDBS) and 
Cable Operations and Licensing System (COALS), as well as reports 
generated within the Commission such as the Wireless Telecommunications 
Bureau's Numbering Resource Utilization Forecast.
    We sought verification for these estimates from multiple sources 
and, in all cases, we compared FY 2015 estimates with actual FY 2014 
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 2015 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 2015 payment units are based on FY 2014 
actual payment units, it does not necessarily mean that our FY 2015 
projection is exactly the same number as in FY 2014. We have either 
rounded the FY 2015 number or adjusted it slightly to account for these 
variables.

         Table D--Sources of Payment Unit Estimates for FY 2015
------------------------------------------------------------------------
           Fee category               Sources of payment unit estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave,       Based on Wireless Telecommunications
 Marine (Ship & Coast), Aviation     Bureau (WTB) projections of new
 (Aircraft & Ground), Domestic       applications and renewals taking
 Public 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 14 payment data.
CMRS Messaging Services...........  Based on WTB reports, and FY 14
                                     payment data.
AM/FM Radio Stations..............  Based on CDBS data, adjusted for
                                     exemptions, and actual FY 2014
                                     payment units.
Digital TV Stations (Combined VHF/  Based on CDBS data, adjusted for
 UHF units).                         exemptions, and actual FY 2014
                                     payment units.
AM/FM/TV Construction Permits.....  Based on CDBS data, adjusted for
                                     exemptions, and actual FY 2014
                                     payment units.
LPTV, Translators and Boosters,     Based on CDBS data, adjusted for
 Class A Television.                 exemptions, and actual FY 2014
                                     payment units.
BRS (formerly MDS/MMDS)...........  Based on WTB reports and actual FY
LMDS..............................   2014 payment units.
                                    Based on WTB reports and actual FY
                                     2014 payment units.
------------------------------------------------------------------------

Initial Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\54\ the 
Commission prepared this Initial Regulatory Flexibility Analysis (IRFA) 
of the possible significant economic impact on small entities by the 
policies and rules proposed in the Notice of Proposed Rulemaking 
(NPRM). Written comments are requested on this IRFA. Comments must be 
identified as responses to the IRFA and must be filed by the deadline 
for comments on this NPRM. The Commission will send a copy of the NPRM, 
including the IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration (SBA).\55\ In addition, the NPRM and IRFA (or 
summaries thereof) will be published in the Federal Register.\56\
---------------------------------------------------------------------------

    \54\ 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), Pub. L. 104-121, Title II, 110 Stat. 847 (1996).
    \55\ 5 U.S.C. 603(a).
    \56\ Id.
---------------------------------------------------------------------------

A. Need for, and Objectives of, the NPRM

    2. The NPRM seeks comment regarding the Commission's proposed 
amendment of its schedule of regulatory fees in the amount of 
$339,844,000, the amount that Congress has required the Commission to 
recover. The Commission seeks to collect the necessary amount through 
its proposed schedule of regulatory fees in a manner that will not 
administratively burden the public. The Commission also seeks comment 
on a request by the Puerto Rico Broadcasters Association to provide 
regulatory fee relief to radio stations in Puerto Rico; revising the 
apportionment between International Bureau licensees to reduce the 
regulatory fees for the submarine cable/bearer circuit category; 
revising the apportionment of regulatory fees among radio and 
television broadcasters; raising the earth station regulatory fees and 
lowering the regulatory fees for space stations; and other proposals 
for regulatory fee reform.

B. Legal Basis

    3. This action, including publication of proposed rules, is 
authorized under Sections (4)(i) and (j), 9, and 303(r) of

[[Page 37215]]

the Communications Act of 1934, as amended.\57\
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    \57\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
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C. Description and Estimate of the Number of Small Entities to Which 
the Rules Will Apply

    4. The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules and policies, if adopted.\58\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \59\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\60\ 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.\61\
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    \58\ 5 U.S.C. 603(b)(3).
    \59\ 5 U.S.C. 601(6).
    \60\ 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.''
    \61\ 15 U.S.C. 632.
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    5. Small Entities. Our actions, over time, may affect small 
entities that are not easily categorized at present. We therefore 
describe here, at the outset, three comprehensive small entity size 
standards that could be directly affected by the proposals under 
consideration.\62\ As of 2009, small businesses represented 99.9 
percent of the 27.5 million businesses in the United States, according 
to the SBA.\63\ In addition, a ``small organization is generally any 
not-for-profit enterprise which is independently owned and operated and 
not dominant in its field.\64\ Nationwide, as of 2007, there were 
approximately 1,621,215 small organizations.\65\ Finally the term 
``small governmental jurisdiction'' is defined generally as 
``governments of cities, towns, townships, villages, school districts, 
or special districts, with a population of less than fifty 
thousand.\66\ Census Bureau data for 2011 indicate that there were 
90,056 local governmental jurisdictions in the United States.\67\ We 
estimate that, of this total, as many as 89,327 entities may qualify as 
``small governmental jurisdictions.'' \68\ Thus, we estimate that most 
local government jurisdictions are small.
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    \62\ See 5 U.S.C. 601(3)-(6).
    \63\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions'', available at http://www.sba.gov/faqs/faqindex.cfm?arealD=24.
    \64\ 5 U.S.C. 601(4).
    \65\ See Independent Sector, The New Nonprofit Almanac and Desk 
Reference (2010).
    \66\ 5 U.S.C. 601(5).
    \67\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' available at http.www.sba.gov/sites/default/files.FAQ 
March 201_Opdf.
    \68\ The 2011 Census Data for small governmental organizations 
are not presented based on the size of the population in each 
organization. As stated above, there were 90,056 local governmental 
organizations in 2011. As a basis for estimating how many of these 
90,056 local organizations were small, we note that there were a 
total of 729 cities and towns (incorporated places and civil 
divisions) with populations over 50,000. See http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk. If we subtract the 729 cities and towns 
that exceed the 50,000 population threshold, we conclude that 
approximately 789, 237 are small.
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    6. Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as ``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 communications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services, wired (cable) audio and video programming 
distribution, and wired broadband internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry.'' \69\ 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.\70\ Census data for 
2007 shows that there were 3,188 firms that operated that year. Of this 
total, 3,144 operated with fewer than 1,000 employees.\71\ Thus, under 
this size standard, the majority of firms in this industry can be 
considered small.
---------------------------------------------------------------------------

    \69\ See http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \70\ See 13 CFR 120.201, NAICS Code 517110.
    \71\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
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    7. 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 NAICS 
Code category is for Wired Telecommunications Carriers as defined in 
paragraph 6 of this IRFA. Under that size standard, such a business is 
small if it has 1,500 or fewer employees.\72\ According to Commission 
data, census data for 2007 shows that there were 3,188 establishments 
that operated that year. Of this total, 3,144 operated with fewer than 
1,000 employees.\73\ The Commission estimates that most providers of 
local exchange service are small entities that may be affected by the 
rules and policies proposed in the Notice of Proposed Rulemaking.
---------------------------------------------------------------------------

    \72\ 13 CFR 121.201, NAICS code 517110.
    \73\ See id.
---------------------------------------------------------------------------

    8. Incumbent LECs. Neither the Commission nor the SBA has developed 
a small business size standard specifically for incumbent local 
exchange services. The closest applicable NAICS Code category is Wired 
Telecommunications Carriers, as defined in paragraph 6 of this IRFA. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees.\74\ According to Commission data, 3,188 firms operated 
in that year. 1,307 carriers reported that they were incumbent local 
exchange service providers.\75\ Of this total, 3,144 operated with 
fewer than 1,000 employees.\76\ Consequently, the Commission estimates 
that most providers of incumbent local exchange service are small 
businesses that may be affected by the rules and policies proposed in 
the NPRM. Three hundred and seven (307) Incumbent Local Exchange 
Carriers reported that they were incumbent local exchange service 
providers.\77\ Of this total, an estimated 1,006 have 1,500 or fewer 
employees.\78\
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    \74\ 13 CFR 121.201, NAICS code 517110.
    \75\ 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).
    \76\ See id.
    \77\ See id.
    \78\ Id.
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    9. 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 NAICS Code category is Wired 
Telecommunications Carriers, as defined in paragraph 6 of this IRFA. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees.\79\ U.S. Census data for 2007 indicate that 3,188 
firms

[[Page 37216]]

operated during that year. Of that number, 3,144 operated with fewer 
than 1,000 employees.\80\ Based on this data, the Commission concludes 
that the majority of Competitive LECs, CAPs, Shared-Tenant Service 
Providers, and Other Local Service Providers are small entities. 
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.\81\ Of these 1,442 carriers, 
an estimated 1,256 have 1,500 or fewer employees. 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.\82\ In 
addition, 72 carriers have reported that they are Other Local Service 
Providers.\83\ Of this total, 70 have 1,500 or fewer employees.\84\ 
Consequently, the Commission estimates that most providers of 
competitive local exchange service, competitive access providers, 
Shared-Tenant Service Providers, and Other Local Service Providers are 
small entities that may be affected by rules adopted pursuant to the 
proposals in this NPRM.
---------------------------------------------------------------------------

    \79\ 13 CFR 121.201, NAICS code 517110.
    \80\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=%20table.
    \81\ See Trends in Telephone Service, at tbl. 5.3.
    \82\ Id.
    \83\ Id.
    \84\ Id.
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    10. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a definition for Interexchange Carriers. The closest 
NAICS Code category is Wired Telecommunications Carriers as defined in 
paragraph 6 of this IRFA. The applicable size standard under SBA rules 
is that such a business is small if it has 1,500 or fewer 
employees.\85\ According to Commission data, 359 companies reported 
that their primary telecommunications service activity was the 
provision of interexchange services.\86\ Of this total, an estimated 
317 have 1,500 or fewer employees and 42 have more than 1,500 
employees.\87\ Consequently, the Commission estimates that the majority 
of interexchange service providers are small entities that may be 
affected by rules adopted pursuant to the Notice of Proposed 
Rulemaking.
---------------------------------------------------------------------------

    \85\ 13 CFR 121.201, NAICS code 517110.
    \86\ See Trends in Telephone Service, at tbl. 5.3.
    \87\ Id.
---------------------------------------------------------------------------

    11. 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 NAICS Code category for 
prepaid calling card providers is Telecommunications Resellers. This 
industry comprises establishments engaged in purchasing access and 
network capacity from owners and operators of telecommunications 
networks and reselling wired and wireless telecommunications services 
(except satellite) to businesses and households. Mobile virtual 
networks operators (MVNOs) are included in this industry.\88\ Under the 
applicable SBA size standard, such a business is small if it has 1,500 
or fewer employees.\89\ U.S. Census data for 2007 show that 1,523 firms 
provided resale services during that year. Of that number, 1,522 
operated with fewer than 1,000 employees.\90\ 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.\91\ All 193 carriers 
have 1,500 or fewer employees.\92\ Consequently, the Commission 
estimates that the majority of prepaid calling card providers are small 
entities that may be affected by rules adopted pursuant to the NPRM.
---------------------------------------------------------------------------

    \88\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch.
    \89\ 13 CFR 121.201, NAICS code 517911.
    \90\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
    \91\ See Trends in Telephone Service, at tbl. 5.3.
    \92\ Id.
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    12. 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.\93\ Census data for 2007 show that 1,523 firms provided 
resale services during that year. Of that number, 1,522 operated with 
fewer than 1,000 employees.\94\ 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.\95\ Of this total, an estimated 211 have 1,500 or 
fewer employees.\96\ Consequently, the Commission estimates that the 
majority of local resellers are small entities that may be affected by 
rules adopted pursuant to the proposals in this NPRM.
---------------------------------------------------------------------------

    \93\ 13 CFR 121.201, NAICS code 517911.
    \94\ Id.
    \95\ See Trends in Telephone Service, at tbl. 5.3.
    \96\ Id.
---------------------------------------------------------------------------

    13. Toll Resellers. The Commission has not developed a definition 
for Toll Resellers. The closest NAICS Code Category is 
Telecommunications Resellers, and 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.\97\ Census data for 2007 show that 1,523 
firms provided resale services during that year. Of that number, 1,522 
operated with fewer than 1,000 employees.\98\ 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.\99\ Of this total, an estimated 857 have 1,500 
or fewer employees.\100\ Consequently, the Commission estimates that 
the majority of toll resellers are small entities that may be affected 
by our proposals in the NPRM.
---------------------------------------------------------------------------

    \97\ 13 CFR 121.201, NAICS code 517911.
    \98\ Id.
    \99\ Trends in Telephone Service, at tbl. 5.3.
    \100\ Id.
---------------------------------------------------------------------------

    14. 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 NAICS Code category 
is for Wired Telecommunications Carriers, as defined in paragraph 6 of 
this IRFA. Under that size standard, such a business is small if it has 
1,500 or fewer employees.\101\ Census data for 2007 shows that there 
were 3,188 firms that operated that year. Of this total, 3,144 operated 
with fewer than 1,000 employees.\102\ 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.\103\ Of these, an 
estimated 279 have 1,500 or fewer employees.\104\ Consequently, the 
Commission estimates that most Other Toll Carriers are small entities 
that may be affected by the rules and policies adopted pursuant to the 
NPRM.
---------------------------------------------------------------------------

    \101\ 13 CFR 121.201, NAICS code 517110.
    \102\ Id.
    \103\ Trends in Telephone Service, at tbl. 5.3.
    \104\ Id.

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[[Page 37217]]

    15. Wireless Telecommunications Carriers (except Satellite). This 
industry comprises establishments engaged in operating and maintaining 
switching and transmission facilities to provide communications via the 
airwaves, such as cellular services, paging services, wireless internet 
access, and wireless video services.\105\ The appropriate size standard 
under SBA rules is that such a business is small if it has 1,500 or 
fewer employees. For this industry, Census Data for 2007 show that 
there were 1,383 firms that operated for the entire year. Of this 
total, 1,368 firms had fewer than 1,000 employees. Thus under this 
category and the associated size standard, the Commission estimates 
that the majority of wireless telecommunications carriers (except 
satellite) are small entities. Similarly, according to internally 
developed 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) services.\106\ Of this total, an estimated 261 have 1,500 or 
fewer employees.\107\ Consequently, the Commission estimates that 
approximately half of these firms can be considered small. Thus, using 
available data, we estimate that the majority of wireless firms can be 
considered small.
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    \105\ NAICS Code 517210. See http://www.census.gov/cgi-bin/ssd/naics/naiscsrch.
    \106\ Trends in Telephone Service, at tbl. 5.3.
    \107\ Id.
---------------------------------------------------------------------------

    16. Cable Television and other Subscription Programming.\108\ 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.'' \109\ The SBA has developed a small 
business size standard for this category, which is: All such firms 
having 1,500 or fewer employees.\110\ Census data for 2007 shows that 
there were 3,188 firms that operated that year. Of this total, 3,144 
had fewer than 1,000 employees.\111\ Thus under this size standard, the 
majority of firms offering cable and other program distribution 
services can be considered small and may be affected by rules adopted 
pursuant to the NPRM.
---------------------------------------------------------------------------

    \108\ In 2014, ``Cable and Other Subscription Programming,'' 
NAICS Code 515210, replaced a prior category, now obsolete, which 
was called ``Cable and Other Program Distribution.'' Cable and Other 
Program Distribution, prior to 2014, were placed under NAICS Code 
517110, Wired Telecommunications Carriers. Wired Telecommunications 
Carriers is still a current and valid NAICS Code Category. Because 
of the similarity between ``Cable and Other Subscription 
Programming'' and ``Cable and other Program Distribution,'' we will, 
in this proceeding, continue to use Wired Telecommunications Carrier 
data based on the U.S. Census. The alternative of using data 
gathered under Cable and Other Subscription Programming (NAICS Code 
515210) is unavailable to us for two reasons. First, the size 
standard established by the SBA for Cable and Other Subscription 
Programming is annual receipts of $38.5 million or less. Thus to use 
the annual receipts size standard would require the Commission 
either to switch from existing employee based size standard of 1,500 
employees or less for Wired Telecommunications Carriers, or else 
would require the use of two size standards. No official approval of 
either option has been granted by the Commission as of the time of 
the release of this Regulatory Fees NPRM and its associated Report 
and Order and Order. Second, the data available under the size 
standard of $38.5 million dollars or less is not applicable at this 
time, because the only currently available U.S. Census data for 
annual receipts of all businesses operating in the NAICS Code 
category of 515210 (Cable and other Subscription Programming) 
consists only of total receipts for all businesses operating in this 
category in 2007 and of total annual receipts for all businesses 
operating in this category in 2012. Hence the data do not provide 
any basis for determining, for either year, how many businesses were 
small because they had annual receipts of $38.5 million or less. See 
http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51I2&prodType=table.
    \109\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' (partial definition), (Full definition 
stated in paragraph 6 of this IRFA) available at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \110\ 13 CFR 121.201, NAICS code 517110.
    \111\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US-51SSSZ5&prodType=Table.
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    17. 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.\112\ Industry 
data indicate that at the end of June 2012, of 1,141 cable companies 
were in operation; of this total, all but ten cable operators are small 
under this size standard.\113\ In addition, under the Commission's 
rules, a ``small system'' is a cable system serving 15,000 or fewer 
subscribers.\114\ Industry data indicate that of 4,945 systems 
nationwide, 4,380 systems have fewer than 20,000 subscribers.\115\ 
Thus, under this second size standard, most cable systems are small and 
may be affected by rules adopted pursuant to the NPRM.
---------------------------------------------------------------------------

    \112\ 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).
    \113\ 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.
    \114\ See 47 CFR 76.901(c).
    \115\ 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.
---------------------------------------------------------------------------

    18. All Other Telecommunications. ``All Other Telecommunications'' 
is defined as follows: This U.S. industry is comprised of 
establishments that are primarily engaged in providing specialized 
telecommunications services, such as satellite tracking, communications 
telemetry, and radar station operation. This industry also includes 
establishments primarily engaged in providing satellite terminal 
stations and associated facilities connected with one or more 
terrestrial systems and capable of transmitting telecommunications to, 
and receiving telecommunications from, satellite systems. 
Establishments providing Internet services or voice over Internet 
protocol (VoIP) services via client-supplied telecommunications 
connections are also included in this industry.\116\ The SBA has 
developed a small business size standard for ``All Other 
Telecommunications,'' which consists of all such firms with gross 
annual receipts of $32.5 million or less.\117\ For this category, 
census data for 2007 show that there were 2,383 firms that operated for 
the entire year. Of these firms, a total of 2,346 had gross annual 
receipts of less than $25 million.\118\ Thus, a majority of ``All Other 
Telecommunications'' firms potentially affected by the proposals in the 
NPRM can be considered small.
---------------------------------------------------------------------------

    \116\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
    \117\ 13 CFR 121.201; NAICs Code 517919.
    \118\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2007_US.51SSSZ4&prodType=table.
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D. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

    19. This NPRM does not propose any changes to the Commission's 
current information collection, reporting, recordkeeping, or compliance 
requirements.

[[Page 37218]]

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

    20. 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.\119\
---------------------------------------------------------------------------

    \119\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

    21. This NPRM seeks comment on the Commission's regulatory fee 
collection for Fiscal Year 2015. Our regulatory fee rules now have a 
significantly higher de minimis threshold ($500) than in previous years 
($10), which takes into account the differing needs of smaller 
entities. With the increase in the de minimis threshold, entities that 
have total annual fees below the threshold will not have to submit 
payment, which reduces the administrative burden on small entities, as 
well as on the Commission. The threshold was raised to $500 to reduce 
the financial and administrative burden on small entities, as well as 
the burden that the previous $10 threshold placed on the Commission to 
process payments, and when applicable, to pursue non-payers whose total 
regulatory fee obligation exceeded $10. In the future, the Commission 
may increase the de minimis threshold to a higher level. In addition, 
the Commission is also seeking comment on additional regulatory fee 
relief for the radio stations in Puerto Rico.

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

    22. None.

VII. Ordering Clauses

    23. 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, Notice 
of Proposed Rulemaking, and Order IS HEREBY ADOPTED.
    24. IT IS FURTHER ORDERED that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, SHALL SEND a 
copy of this Notice of Proposed Rulemaking, including the Initial 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the U.S. Small Business Administration.

Federal Communications Commission.
Gloria J. Miles,
Federal Register Liaison Officer.
[FR Doc. 2015-15971 Filed 6-29-15; 8:45 am]
 BILLING CODE 6712-01-P