[Federal Register Volume 81, Number 107 (Friday, June 3, 2016)]
[Proposed Rules]
[Pages 35680-35698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13087]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[MD Docket Nos. 16-166; FCC 16-61]
Assessment and Collection of Regulatory Fees for Fiscal Year 2016
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
[[Page 35681]]
amount of $384,012,497 that Congress has required the Commission to
collect for fiscal year 2016. Section 9 of the Communications Act of
1934, as amended, provides for the annual assessment and collection of
regulatory fees under sections 9(b)(2) and 9(b)(3), respectively, for
annual ``Mandatory Adjustments'' and ``Permitted Amendments'' to the
Schedule of Regulatory Fees.
DATES: Submit comments on or before June 20, 2016, and reply comments
on or before July 5, 2016.
ADDRESSES: You may submit comments, identified by MD Docket No. 16-166,
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.
Email: [email protected]. Include MD Docket No. 16-166 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), FCC 16-61, MD Docket No. 16-166, adopted
on May 18, 2016, and released on May 19, 2016. 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. This Notice of Proposed Rulemaking (FY 2016 NPRM) 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 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
[[Page 35682]]
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 Regulatory Flexibility Analysis
5. An initial regulatory flexibility analysis (IRFA) is contained
in this document. Comments to the IRFA must be identified as responses
to the IRFA and filed by the deadlines for comments on this NPRM. The
Commission will send a copy of this NPRM, including the IRFA, to the
Chief Counsel for Advocacy of the Small Business Administration.
D. Initial Paperwork Reduction Act
6. This document does not contain new or modified information
collection requirements subject to the Paperwork Reduction Act of 1995
(PRA), Public Law 104-13. In addition, therefore, it does not contain
any new or modified information collection burden for small business
concerns with fewer than 25 employees, pursuant to the Small Business
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C.
3506(c)(4).
II. Introduction
7. In this Notice of Proposed Rulemaking (NPRM), we seek comment on
the Federal Communications Commission's (FCC's or Commission's)
proposed regulatory fees for fiscal year (FY) 2016. Specifically, the
Commission proposes to collect $384,012,497.00 in regulatory fees as
detailed in the proposed fee schedule attached to this NPRM in Table 4.
As explained in this NPRM, the proposed fee schedule includes
adjustments to the table used to assess regulatory fees on
broadcasters.
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.\1\ 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.'' \2\ Regulatory fees 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 . . . .'' \3\
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.\4\ Regulatory fees also cover the costs
incurred in regulating entities that are statutorily exempt from paying
regulatory fees,\5\ entities whose regulatory fees are waived,\6\ and
entities that provide services for which we do not assess regulatory
fees.
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\1\ 47 U.S.C. 159(b)(1)(B). The Commission collected $7.67
million above the required regulatory fee target goal in FY 2015,
which the Commission deposited into the U.S. Treasury. The
cumulative over collection is $98.367 million as of September 30,
2015.
\2\ 47 U.S.C. 159(a).
\3\ 47 U.S.C. 159(b)(1)(A).
\4\ Assessment and Collection of Regulatory Fees for Fiscal Year
2004, Report and Order, 19 FCC Rcd 11662, 11666, para. 11 (2004) (FY
2004 Report and Order).
\5\ For example, governmental and nonprofit entities are exempt
from regulatory fees under section 9(h) of the Communications Act of
1934, as amended (Communications Act or Act). 47 U.S.C. 159(h); 47
CFR 1.1162.
\6\ 47 CFR 1.1166.
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9. Congress sets the amount the Commission must collect each year
in the Commission's fiscal year appropriations. Section 9(a)(2) of the
Communications Act, as amended (Communications Act or Act) requires the
Commission to collect fees sufficient to offset the amount
appropriated.\7\ To calculate regulatory fees, the Commission allocates
the total collection target across all regulatory fee categories. The
allocation of fees to fee categories is based on the Commission's
calculation of FTEs \8\ in each regulatory fee category. FTEs are
classified as ``direct'' if the employee is in one of the four ``core''
bureaus; otherwise, that employee is considered an ``indirect'' FTE.\9\
The total FTEs for each fee category includes the direct FTEs
associated with that category, plus a proportional allocation of
indirect FTEs. The Commission then allocates the total amount to be
collected among the various regulatory fee categories. Each regulatee
within a fee category pays its proportionate share based on an
objective measure, e.g., revenues, number of subscribers, or
licenses.\10\
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\7\ 47 U.S.C. 159(a)(2).
\8\ 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.
\9\ The core bureaus are the Wireline Competition Bureau (165
FTEs), Wireless Telecommunications Bureau (92 FTEs), Media Bureau
(151 FTEs), and part of the International Bureau (24 FTEs), totaling
432 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, part of the International 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 1,046 indirect FTEs. These totals are as of Oct. 1, 2015
and exclude auctions funded FTEs.
\10\ See Procedures for Assessment and Collection of Regulatory
Fees, Notice of Proposed Rulemaking, 27 FCC Rcd 8458, 8461-62,
paras. 8-11 (2012) (FY 2012 NPRM).
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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. Specifically, in the FY 2013
Report and Order, the Commission adopted updated FTE allocations to
more accurately reflect the number of FTEs working on regulation and
oversight of the regulatees in the various fee categories; \11\
reallocated some FTEs from the International Bureau as ``indirect;''
\12\ combined the UHF and VHF television stations into one regulatory
fee category; \13\ and created a regulatory fee category that included
Internet Protocol Television (IPTV).\14\ Subsequently, in the FY 2014
Report and Order and FNPRM, the Commission adopted a new fee
subcategory (within the Interstate Telecommunications Service Provider
(ITSP) category) for toll free numbers; \15\ increased the de minimis
threshold for annual regulatory fee payors; \16\ and eliminated several
categories from the regulatory fee schedule.\17\ In the FY 2015 NPRM
and
[[Page 35683]]
Report and Order, the Commission added a subcategory for Direct
Broadcast Satellite (DBS) providers (in the cable television and IPTV
regulatory fee category) based on the finding that Media Bureau FTEs
work on issues and proceedings that include DBS as well as other
multichannel video programming distributors (MVPDs).\18\ In addition,
in the FY 2015 NPRM and Report and Order, we sought comment on revising
the regulatory fee schedule for broadcasters.\19\
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\11\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2013, Report and Order, 28 FCC Rcd 12351, 12354-58, paras 10-20
(2013) (FY 2013 Report and Order). This was recommended in a report
issued by the Government Accountability Office (GAO) in 2012. See
GAO ``Federal Communications Commission Regulatory Fee Process Needs
to be Updated,'' GAO-12-686 (August 2012) (GAO Report) at 36,
(available at http://www.gao.gov/products/GAO-12-686).
\12\ FY 2013 Report and Order, 28 FCC Rcd at 12355-58, paras.
13-20.
\13\ Id., 28 FCC Rcd at 12361-62, paras. 29-31.
\14\ Id., 28 FCC Rcd at 12362-63, paras. 32-33.
\15\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2014, Report and Order and Further Notice of Proposed
Rulemaking, 29 FCC Rcd 10767, 10777-79, paras. 25-28 (2014) (FY 2014
Report and Order and FNPRM).
\16\ FY 2014 Report and Order and FNPRM, 29 FCC Rcd at 10774-76,
paras. 18-21.
\17\ Id., 29 FCC Rcd at 10776-77, paras. 22-24.
\18\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2015, Notice of Proposed Rulemaking, Report and Order, and
Order, 30 FCC Rcd 5354, 5364-5373, paras. 28-41 (2015) (FY 2015 NPRM
and Report and Order). We also eliminated two additional fee
categories. See id., 30 FCC Rcd at 5361-62, paras. 19-22.
\19\ Id., 30 FCC Rcd at 5359, para. 13. In the FY 2015 Report
and Order and FNPRM, we sought further comment on the broadcast
regulatory fees issue and also sought comment on ITTA's proposal to
reallocate FTEs in the Wireline Competition Bureau. Assessment and
Collection of Regulatory Fees for Fiscal Year 2015, Report and Order
and Further Notice of Proposed Rulemaking, 30 FCC Rcd 10268, 10279-
282, paras. 27-34 (2015) (FY 2015 Report and Order and FNPRM).
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IV. Discussion
A. Notice of Proposed Rulemaking
11. We propose to collect $384,012,497 in regulatory fees for FY
2016, pursuant to section 9 of the Communications Act.\20\ Of this
amount, we project approximately $21.4 million (5.56 percent of the
total FTE allocation) in fees from the International Bureau regulatees;
\21\ $81.9 million (21.3 percent of the total FTE allocation) in fees
from the Wireless Telecommunications Bureau regulatees; \22\ $133.97
million (34.95 percent of the total FTE allocation) from the Media
Bureau regulatees; \23\ and $146.8 million (38.19 percent of the total
FTE allocation) from Wireline Competition Bureau regulatees.\24\
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\20\ 47 U.S.C. 159. The proposed regulatory fee rates for FY
2016 include $339,844,000 for operational expenses and an additional
one time amount of $44,168,497 to offset facilities reduction, i.e.,
reduce our office space footprint and move the FCC office location
if necessary. Consolidated Appropriations Act, 2016, Public Law 114-
113, Dec. 18, 2015. Due to the facilities reduction, regulatees'
aggregate fees by category increased on average by approximately 11-
13 percent for 2016.
\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 AM radio, FM radio, television, low power/FM,
cable television and IPTV, DBS, and Cable Television Relay Service
(CARS) licenses.
\24\ Includes Interstate Telecommunications Service Providers
(ITSP) and toll free numbers.
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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 4.
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\25\ 47 U.S.C. 159(a).
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1. DBS Regulatory Fees as a Subcategory in the Cable Television and
IPTV Category
13. This proposed fee schedule includes an updated regulatory fee
for DBS, a subcategory in the cable television and IPTV category.\26\
In 2015, the Commission adopted the initial regulatory fee for DBS, as
a subcategory in the cable television and IPTV category, of 12 cents
per year per subscriber, or one cent per month.\27\ At that time, the
Commission stated that it would update the rate for FY 2016, as
necessary for ensuring an appropriate level of regulatory parity and
considering the resources dedicated to this subcategory.\28\ When the
Commission adopted this regulatory fee subcategory for DBS, the
Commission observed that numerous regulatory developments had increased
the Media Bureau FTE activity involving regulation and oversight of
MVPDs, including DBS providers.\29\ For example, DBS providers (and
cable television operators) are permitted to file program access
complaints \30\ and complaints seeking relief under the retransmission
consent good faith rules; \31\ DBS providers are subject to MVPD
requirements such as those pertaining to program carriage; \32\ and
they are subject to the requirement to negotiate retransmission consent
in good faith.\33\ In addition, the Commission, in recent years,
adopted numerous requirements that apply to all MVPDs, and thus DBS
providers, as part of its implementation of the Commercial
Advertisement Loudness Mitigation Act (CALM Act),\34\ the Twenty-First
Century Communications and Video Accessibility Act of 2010 (CVAA),\35\
as well as the Satellite Television Extension and Localism Act (STELA)
Reauthorization Act of 2014 (STELAR).\36\
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\26\ DBS also pays a regulatory per operational station in
geostationary orbit.
\27\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10276-77,
paras. 19-20.
\28\ Id., 30 FCC Rcd at 10277, para. 20.
\29\ See FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5367-
68, para. 31.
\30\ 47 U.S.C. 548; 47 CFR 76.1000-1004.
\31\ 47 U.S.C. 325(b)(1), (3)(C)(ii); 47 CFR 76.65(b).
\32\ 47 U.S.C. 536; 47 CFR 76.1300-1302.
\33\ 47 U.S.C. 325(b)(3)(C)(iii); 47 CFR 76.65(a)-(b).
\34\ See Implementation of the Commercial Advertisement,
Loudness Mitigation (CALM) Act, Report and Order, 26 FCC Rcd 17222
(2011) (CALM Act Report and Order).
\35\ Public Law 111-260, 124 Stat. 2751 (2010). See also
Amendment of Twenty-First Century Communications and Video
Accessibility Act of 2010, Public Law 111-265, 124 Stat. 2795 (2010)
(making corrections to the CVAA); 47 CFR part 79.
\36\ The STELA Reauthorization Act of 2014 (STELAR), Public Law
113-200, 128 Stat. 2059 (2014). STELAR was enacted on December 4,
2014 (H.R. 5728, 113th Cong.). Commission work on implementation of
the Act was immediate. See, e.g., Implementation of Sections 101,
103 and 105 of the STELA Reauthorization Act of 2014, Order, 30 FCC
Rcd 2380 (2015) (implementing certain STELAR provisions under the
``good cause'' exception to the Administrative Procedure Act);
Amendment to the Commission's Rules Concerning Market Modification,
Implementation of Section 102 of the STELA Reauthorization Act of
2014, Report and Order, 30 FCC Rcd 10406 (2015) (adopting satellite
television market modification rules to enable satellite carriers,
cable operators, and commercial television stations to better serve
the interests of their local communities); Implementation of Section
103 of the STELA Reauthorization Act of 2014, Notice of Proposed
Rulemaking, 30 FCC Rcd 10327 (2015) (seeking comment on potential
updates to the ``totality of the circumstances'' test for good faith
negotiation of retransmission consent); Final Report of the DSTAC,
available at https://transition.fcc.gov/dstac/dstac-report-final-08282015.pdf; ``Media Bureau Seeks Comment on DSTAC Report,'' Public
Notice, DA 15-982, 2015 WL 5164960 (MB 2015); ``Media Bureau Seeks
Comment for Report Required by the STELA Reauthorization Act of
2014,'' Public Notice, 30 FCC Rcd 1904 (2015) (seeking information
for a report to Congress on designated market areas and
considerations for fostering increased localism).
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14. FY 2015 was the first time the Commission assessed a regulatory
fee for DBS based on Media Bureau FTEs. At that time, the Commission
concluded an initial rate of 12 cents per subscriber per year was a
sensible fee supported by data and analysis for FY 2015.\37\ In
adopting the regulatory fee for DBS as a subcategory of cable
television and IPTV category, the Commission explained that ``although
DBS is not identical to cable television and IPTV, the services all
receive oversight and regulation as a result of the work of Media
Bureau FTEs on MVPD issues. The burden imposed on the Commission is
therefore similar.'' \38\ At the same time, the Commission also
explained that it would examine the appropriate allocation between and
among MVPD regulatees in the coming years as the Commission implemented
the new DBS fee.\39\ Such examination is
[[Page 35684]]
consistent with a report issued by the Government Accountability Office
(GAO) in 2012, which observed it is important for the Commission to
``regularly update analyses to ensure that fees are set based on
relevant information.'' \40\
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\37\ See FY 2015 Report and Order and FNPRM, 30 FCC Rcd at
10276-77, para. 20. The agency is not required to calculate its
costs with ``scientific precision.'' Central & Southern Motor
Freight Tariff Ass'n v. United States, 777 F.2d 722, 736 (D.C. Cir.
1985). Reasonable approximations will suffice. Id.; Mississippi
Power & Light, 601 F.2d 223, 232 (5th Cir. 1979); National Cable
Television Ass'n v. FCC, 554 F.2d 1094, 1105 (D.C. Cir. 1976).
\38\ FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5369,
para. 33.
\39\ FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5367-68,
para. 34, n.129 (The Commission explained that ``[e]ven when an
industry has oversight generally by one organizational unit within
the Commission, we are sensitive to the fact that balance between
members of the same industry may require adjustments to FTE
allocations.'').
\40\ GAO Report at 12.
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15. In addition to the activities described in our FY 2015
regulatory fee proceeding, DBS, along with other MVPDs, continues to
receive oversight and regulation as a result of the work of Media
Bureau FTEs. For example, the Commission recently adopted a Report and
Order requiring cable operators, DBS providers, and certain other
licensees to post their public file documents to the FCC-hosted online
database.\41\ In addition, the Commission is currently reviewing a
proposal by Chairman Wheeler to unlock the set-top box of cable and DBS
operators.\42\ Thus, for reasons similar to those discussed in the FY
2015 NPRM and Report and Order,\43\ and based on the Commission's
analysis of the resources dedicated to this subcategory, including the
resources dedicated to the pending portfolio of MVPD proceedings, the
Commission proposes to revise the DBS fee rate. Specifically, in this
FY 2016 regulatory fee proceeding, the Commission seeks comment on a
higher regulatory fee rate of 27 cents per subscriber per year for FY
2016, as set forth in the proposed fee schedule. This fee includes a 24
cent per subscriber baseline with a proportional adjustment of three
cents per subscriber associated with the Commission's facilities
reduction costs.
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\41\ Expansion of Online Public File Obligations to Cable and
Satellite TV Operators and Broadcast and Satellite Radio Licensees,
Memorandum, Opinion and Order, FCC 16-4, 2016 WL 380814 (released
January 29, 2016).
\42\ ``Expanding Consumer Choice in the Video Marketplace''
(January 28, 2016), available at https://www.fcc.gov/news-events/blog/2016/01/28/expanding-consumer-choice-video-marketplace.
\43\ FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5367-5373,
paras. 31-41.
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2. Broadcaster Regulatory Fees
16. The Commission assesses regulatory fees on radio broadcasters
based on type and class of service and on the population served. Upon
occasion, the Commission makes adjustments to the methodology for
assessing regulatory fees on radio broadcasters. For example,
concerning population served, the Commission adopted a methodology that
relied on the radio station's calculated field strength signal contour
overlaid upon U.S. Census data to obtain an estimate of the population
coverage for each station.\44\ Subsequently, licensees complained to
the Commission that the contours exaggerated actual market areas and
populations served. The Commission addressed these concerns through
revising the methodology for calculating the fees.\45\ Similarly, in
2003, due to a trend toward more powerful stations and general
increases in the overall population, an increasing number of stations
were grouped in the one million-plus population category of the grid
and the Commission expanded the AM and FM radio station grid to include
wider population thresholds and extended the population category to an
amount ``greater than three million.'' \46\
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\44\ Assessment and Collection of Regulatory Fees for Fiscal
Year 1997, Report and Order, 12 FCC Rcd 17161, 17179-17184, paras.
47-56 (1997).
\45\ Assessment and Collection of Regulatory Fees for Fiscal
Year 1998, Report and Order, 13 FCC Rcd 19820, 19830-33, paras. 31-
41 (1998).
\46\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2003, Report and Order, 18 FCC Rcd 15985, 15986-87, paras. 4-5
(2003).
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17. In the FY 2015 Report and Order and FNPRM, the Commission
proposed to include a higher population row in the table for AM and FM
broadcasters, i.e., to divide broadcasters that serve 3,000,001-
6,000,000 from those that have a higher population coverage.\47\
Similarly in the FY 2015 Report and Order and FNPRM, the Commission
also proposed to standardize the incremental increase in fees as the
population served increases \48\ and to more consistently assess fees
based on the type and class of service.\49\ No comments were received
by the Commission concerning this proposal. The Commission now
tentatively concludes adopting these proposals will make the regulatory
fees for AM and FM radio more rational and address, in part, the
problem of a large number of stations in the highest grid.\50\ The
Commission seeks comment on the following proposed table of regulatory
fees for AM and FM radio broadcasters, which includes fees based on the
adoption of both options.
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\47\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10280,
para. 28.
\48\ Id. Specifically, we sought comment on standardizing the
incremental increase in fees as radio broadcasters increase the
population they serve, such as by requiring that fee adjustments
between tiers monotonically increase as the population served
increases. Id.
\49\ Id. We sought comment on assessing fees based on the
relative type and class of service, such as by assessing FM class B,
C, C0, C1, & C2 stations at twice the rate of AM class C stations,
and FM class A, B1, & C3 stations assessed at 75 percent more than
AM class C stations. For AM stations, we sought comment on assessing
AM class A stations at 60 percent more, AM class B stations at 15
percent more, and AM class D stations at 10 percent more than AM
class C stations. Id.
\50\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10279-
280, paras. 27-28.
Table 1
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FY 2016 Radio station regulatory fees (proposed)
---------------------------------------------------------------------------------------------------------------------------------------------------------
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................................................ $1,100 $795 $690 $760 $1,200 $1,375
25,001-75,000........................................... 1,650 1,200 1,025 1,150 1,800 2,050
75,001-150,000.......................................... 2,200 1,600 1,375 1,525 2,400 2,750
150,001-500,000......................................... 3,300 2,375 2,075 2,275 3,600 4,125
500,001-1,200,000....................................... 5,500 3,975 3,450 3,800 6,000 6,875
1,200,001-3,000,00...................................... 8,250 5,950 5,175 5,700 9,000 10,300
3,000,001-6,000,00...................................... 11,000 7,950 6,900 7,600 12,000 13,750
>6,000,000.............................................. 13,750 9,950 8,625 9,500 15,000 17,175
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18. Concerning television broadcasters, in the FY 2015 Report and
Order and FNPRM, the Commission proposed to readjust the table to
restore the traditional determination that Top 10 stations should pay
about twice what
[[Page 35685]]
stations in markets 26-50 pay.\51\ The Commission did not receive
comments on this proposal. At this time, the Commission tentatively
concludes that this proposal will make the regulatory fees for
television broadcasters more rational. Accordingly, the Commission
seeks comment on the regulatory fees for television broadcasters as set
forth in Table 4.
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\51\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10280-81,
para. 29.
Table 2
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FY 2016 Television station regulatory fees (proposed)
-------------------------------------------------------------------------
FY 2016
Digital TV (47 CFR part 73) VHF and UHF FY 2015 Proposed
commercial Fee rates fee rates
------------------------------------------------------------------------
Markets 1-10.................................... $46,825 $60,775
Markets 11-25................................... 43,200 45,750
Markets 26-50................................... 27,625 30,575
Markets 51-100.................................. 16,275 15,225
Remaining Markets............................... 4,850 5,000
Construction Permits............................ 4,850 5,000
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19. The Commission also recognizes that the incentive auction
scheduled for 2016 is a substantial event for the television broadcast
industry. As a result, in the FY 2015 Report and Order and FNPRM, the
Commission sought comment on whether, when, and how the Commission
should adjust its methodology for assessing regulatory fees on
television stations to respond to such potential changed circumstances
consistent with the provisions of section 9 of the Communications
Act.\52\ While the Commission received comments on the issue,\53\ it is
too early to revise our regulatory fee apportionment because of the
uncertainty in events that have yet to happen. The Commission intends
to consider any changed circumstances due to the incentive auction as
part of the FY 2017 regulatory fee proceeding.
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\52\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10281,
para. 30.
\53\ NAB Comments at 2-7.
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3. International Services: Terrestrial and Satellite Services
20. Facilities-based common carriers must pay regulatory fees for
terrestrial and satellite International Bearer Circuits (IBCs) active
(used or leased) as of December 31 of the prior year in any terrestrial
or satellite transmission facility for the provision of service to an
end user or resale carrier.\54\ In the FY 2015 Report and Order and
FNPRM, the Commission asked facilities-based common carriers to review
their reporting processes to ensure that they accurately calculate and
report IBCs.\55\ The Commission reminded facilities-based common
carriers that they must include all common carrier circuits used by
themselves or their affiliates when calculating the number of active
circuits. The Commission also indicated that we will review the
processes for reporting IBCs in the near future to ensure that all
carriers are reporting IBCs in the same manner, consistent with our
rules. In this regard, the Commission seeks comment on how we can
ensure that all providers are calculating and reporting IBCs in the
same manner. What criteria do providers use to distinguish common
carrier terrestrial circuits from non-common carrier terrestrial
circuits for regulatory fee purposes?
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\54\ See para. 22 infra.
\55\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd 10268,
10283-85, para. 40 and n.128.
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21. As the Commission has stated in the past, non-common carrier
terrestrial circuits play an important role in the provision of
international services through microwave and fiber links across the
U.S.-Canada and U.S.-Mexico borders, and the Commission regularly
engages with counterparts in Canada and Mexico on a wide range of
issues related to cross-border communications.\56\ In 2009, the
Commission explored whether carriers should be assessed regulatory fees
for their terrestrial non-common carrier circuits, but declined to do
so at that time because of the ``complexity of the legal, policy and
equity issues involved.'' \57\ Since that time, the telecommunications
industry and Commission's rules have evolved, and the Commission now
seeks comment on whether it would be more equitable to no longer
distinguish common carrier terrestrial circuits from non-common carrier
terrestrial circuits for regulatory fee purposes. If the Commission
requires carriers providing international service over terrestrial
circuits to pay IBC regulatory fees for their non-common carrier
circuits, what is the least burdensome methodology for calculating
fees? For example, should the Commission require carriers to report the
total amount of international revenue rather than the number of
circuits? How do carriers identify their international revenues? How
can the Commission ensure carriers are accurately reporting both common
carrier and non-common carrier terrestrial circuits? Finally, how can
the Commission improve the requirements and regulatory treatment of
terrestrial and satellite services for purposes of regulatory fees?
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\56\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2009, Notice of Proposed Rulemaking and Order, 24 FCC Rcd 5966,
5971, para. 14 (2009).
\57\ Assessment and Collection of Regulatory Fees for Fiscal
Year 2009, Report and Order, 24 FCC Rcd 10301, 10306-307, paras. 16-
17 (2009). On March 17, 2009, the Commission adopted in the
Submarine Cable Order a new submarine cable bearer circuit
methodology that allocates IBC costs among service providers in an
equitable and competitively neutral manner, without distinguishing
between common carriers and non-common carriers, by assessing a flat
per cable landing license fee for all submarine cable systems.
Assessment and Collection of Regulatory Fees for Fiscal Year 2008,
Second Report and Order, 24 FCC Rcd 4208, 4214-16, paras. 13-17
(2009) (Submarine Cable Order).
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4. Other Regulatory Fee Reform
a. ITTA Proposal
22. In the FY 2015 Report and Order and FNPRM, the Commission
sought comment on ITTA's proposals to combine wireless voice and
wireline services into the ITSP category \58\ or, alternatively, to re-
assign certain Wireline Competition Bureau FTEs to other fee
categories, for regulatory fee purposes. The Commission also sought
comment on adopting a new regulatory fee category for CMRS, as a
subcategory of the ITSP regulatory fee category.\59\ The Commission has
had an opportunity to further review ITTA's proposals and, as we
explain below, we tentatively conclude that combining the wireline and
wireless categories, reassigning Wireline Competition Bureau FTEs to
the Wireless Telecommunications Bureau, and/or adopting a new
subcategory for CMRS in the ITSP regulatory fee category are not
consistent with Commission orders implementing section 9 of the
Communications Act.
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\58\ ITTA Comments at 4-9. See FY 2015 Report and Order and
FNPRM, 30 FCC Rcd at 10281-82, paras. 31-34. ITTA had proposed this
previously. See, e.g., Assessment and Collection of Regulatory Fees
for Fiscal Year 2014, Notice of Proposed Rulemaking, 29 FCC Rcd
6417, 6430-31, paras. 36-39 (2014) (FY 2014 NPRM); Assessment and
Collection of Regulatory Fees for Fiscal Year 2013, Notice of
Proposed Rulemaking and Further Notice of Proposed Rulemaking, 28
FCC Rcd 7790, 7796, para. 12 (2013) (FY 2013 NPRM); Assessment and
Collection of Regulatory Fees for Fiscal Year 2008, Report and Order
and Further Notice of Proposed Rulemaking, 24 FCC Rcd 6388, 6404-05,
paras. 40-41 (2008) (FY 2008 FNPRM).
\59\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10282,
para. 34. ITTA and ACA argue that such change is supported by the
fact that many proceedings in the Wireline Competition Bureau
proceedings, and elsewhere, such as those involving universal
service, intercarrier compensation, pole attachments, rural call
completion, number portability, 911 access, and special access,
affect wireless service providers. ITTA Comments at 9-10; ACA
Comments at 4-7. CTIA opposes this proposal as arbitrary and
capricious as well as in violation of section 9 of the Act. CTIA
Comments at 2.
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23. The Commission has stated that ``[g]iven the significant
implications of reassignment of FTEs in our fee
[[Page 35686]]
calculation, we make changes to FTE classifications only after
performing considerable analysis and finding the clearest case for
reassignment.'' \60\ In this instance, ITTA contends that the Wireline
Competition Bureau FTEs working on universal service issues and other
proceedings benefit categories of service providers other than ITSPs,
particularly CMRS providers, and therefore should be considered in
calculating the CMRS regulatory fee.\61\ Based on our own detailed
analysis, as well as the fact that the Wireless Telecommunications
Bureau assigns its own FTEs to coordinate with the Wireline Competition
Bureau on relevant wireless issues, we tentatively conclude that a
clear case for reassignment of Wireline Competition Bureau FTEs to the
Wireless Telecommunications Bureau is not demonstrated in this
instance. Our analysis of the Wireline Competition Bureau FTE work on
wireline issues that also affect the CMRS industry does not support
adopting a new subcategory for CMRS in the ITSP regulatory fee
category--and thus assessing regulatory fees on CMRS based on both
Wireless Telecommunications Bureau FTEs and Wireline Competition Bureau
FTEs, as ITTA proposes.\62\ Further, ITTA's proposal to combine these
regulatory fee categories does not appear to address the substantial
differences between the services in terms of regulatory oversight by
the two bureaus. Thus, at this juncture, the Commission does not find
that the ``clearest case of reassignment'' exists based on the
considerable analysis we have conducted.
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\60\ FY 2013 Report and Order, 28 FCC Rcd at 12357, para. 19.
The Commission observed that the International Bureau was a
``singular case'' because the work of those FTEs ``primarily
benefits licensees regulated by other bureaus.'' Id., 28 FCC Rcd at
12355, para. 14.
\61\ ITTA Comments at 10.
\62\ See Letter from Micah M. Caldwell, ITTA, to Marlene H.
Dortch, Secretary, FCC (January 22, 2016).
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24. The Commission nevertheless seeks comment on whether it would
be appropriate to allocate some proportion of the direct FTEs that
devote time to universal service and/or numbering issues as additional
indirect FTEs.\63\ Based on staff estimates looking back over a 6 to 12
month period, of the 165 FTEs in the Wireline Competition Bureau,
approximately seven FTEs work on numbering issues and 52 FTEs work on
universal service issues (approximately 16 on the high-cost program, 13
on the schools and libraries program, nine on the Lifeline program for
low income consumers (lifeline), seven on the rural healthcare program,
and seven on universal service contributions).\64\ Of the 92 FTEs in
the Wireless Telecommunications Bureau, staff estimate that the
equivalent of approximately five FTEs work roughly full time on
universal service issues (primarily the high-cost program). If we were
to reallocate, for regulatory fee purposes, some proportion of the
direct FTEs, what should that proportion be? Any proposals should
demonstrate policy or legal arguments supporting reallocating some
proportion of numbering and/or USF FTEs as indirect. In doing so, the
Commission would invite comment on whether some or all of the FTEs that
work on universal service contributions, the schools and libraries
program, or the rural healthcare program, should be reallocated as
indirect FTEs. Should the Commission reallocate some proportion of the
FTEs from each bureau that work on the high-cost program, given the
participation of non-wireline and wireless regulatees in the Connect
America Fund proceedings? What proportion, if any, of the FTEs that
work on numbering issues and the lifeline program should the Commission
reallocate given that a significant number of regulatees benefiting
from those programs are not wireline regulatees? Is there some
proportion of these FTEs whose ``activities benefit the Commission as a
whole and are not specifically focused on [core bureau] regulatees''?
\65\ Commenters' proposals for FTE reallocation should be consistent
with the section 9 requirement that regulatory fees are to ``be derived
by determining the full-time equivalent number of employees
performing'' Commission 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 . . . .'' \66\
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\63\ Currently, indirect FTEs in various bureaus and offices
work on universal service issues.
\64\ These estimates can vary as discussed above and do not
represent an entire fiscal year.
\65\ FY 2013 NPRM, 28 FCC Rcd at 7803, para. 28.
\66\ 47 U.S.C. 159(b)(1)(A). (Emphasis added).
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25. The Commission notes that incorrect allocation of FTEs to a
particular core bureau may disproportionately impact regulatees given
that indirect FTEs are allocated proportionally based on the direct FTE
percentage attributable to a particular core bureau. The Commission
also notes that any change in the allocation of FTEs necessarily
affects the fees paid by payors in all other fee categories. We seek
comment on whether this proposal is consistent with section 9 of the
Act \67\ and with the Commission's allocation policies with respect to
direct and indirect FTEs.\68\ Commenters should also address the
Commission's goal of ensuring that regulatory fees are administrable
and sustainable.\69\
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\67\ Section 9 of the Communications Act requires regulatory
fees collected ``to recover the costs of . . . enforcement
activities, policy and rulemaking activities, user information
services, and international activities.'' 47 U.S.C. 159(a). The
regulatory fees 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 . . . .'' 47 U.S.C. 159(b)(1)(A).
\68\ FY 2013 Report and Order, 28 FCC Rcd at 12354-55, paras.
10-12 (adopting use of current FTE data for purposes of regulatory
fee calculations as opposed to 1998 FTE data previously used); id.
at 12357-58, paras. 19-20 (``It would be inconsistent with section 9
to delay reallocating the International Bureau FTEs, where the
reallocation is clearly warranted, while we engage in painstaking
examinations of less clear and more factually complex situations in
other bureaus. . . . At the same time, however, we recognize that a
reexamination of how FTEs are allocated throughout the Commission is
an indispensable part of comprehensively revising the Commission's
regulatory fee program.''); FY 2013 NPRM, 28 FCC Rcd at 7793-95,
7796-99, 7803, paras. 7-10, 15-19, 29 (generally explaining prior
FTE allocation methodology and proposing methodology changes).
\69\ FY 2013 Report and Order, 28 FCC Rcd at 12354, para 9.
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b. Earth Stations
26. In the FY 2014 NPRM, the Commission sought comment on
increasing the earth station regulatory fee allocation in order to
reflect more appropriately the number of FTEs devoted to the regulation
and oversight of the earth station portion of the satellite
industry.\70\ In the FY 2014 regulatory fee proceeding, the Commission
increased the regulatory fees paid by earth station licensees by
approximately 7.5 percent based on our analysis and review of the
record.\71\ In the FY 2015 NPRM and Report and Order, the Commission
sought comment on whether to raise the earth station regulatory fees
again.\72\ We concluded, however, that the issue required further
analysis, in part because the then-pending part 25 proceeding
streamlining the satellite licensing rules might affect the
distribution of FTE work.\73\ An Order was adopted in that proceeding
in December 2015, and accordingly it is timely to again seek comment on
whether to increase the regulatory fees paid by earth station
licensees.\74\ In this context, we seek comment on EchoStar's proposal
to
[[Page 35687]]
adopt different regulatory fees for different types of earth station
licenses.\75\
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\70\ FY 2014 NPRM, 29 FCC Rcd at 6428, para. 29.
\71\ See FY 2014 Report and Order, 29 FCC Rcd at 10772-73, para.
12.
\72\ FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5360,
para. 14.
\73\ FY 2015 NPRM and Report and Order, 30 FCC Rcd at 5360,
para. 14.
\74\ See Comprehensive Review of Licensing and Operating Rules
for Satellite Services, Second Report and Order, 30 FCC Rcd 14713
(2015).
\75\ See EchoStar July 20, 2015 ex parte, filed in MD Docket No.
15-121.
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V. Procedural Matters
A. Payment of Regulatory Fees
1. Payments by Check Will Not Be Accepted for Payment of Annual
Regulatory Fees
27. Pursuant to an Office of Management and Budget (OMB)
directive,\76\ the Commission is moving towards a paperless
environment, extending to disbursement and collection of select federal
government payments and receipts.\77\ Last year the Commission stopped
accepting checks (including cashier's checks and money orders) and the
accompanying hardcopy forms (e.g., Forms 159, 159-B, 159-E, 159-W) for
the payment of regulatory fees.\78\ This new paperless procedure
requires that all payments be made by online Automated Clearing House
(ACH) payment, online credit card, or wire transfer. Any other form of
payment (e.g., checks, cashier's checks, or money orders) will be
rejected. For payments by wire, a Form 159-E should still be
transmitted via fax so that the Commission can associate the wire
payment with the correct regulatory fee information. This change
affects all payments of regulatory fees.\79\
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\76\ Office of Management and Budget (OMB) Memorandum M-10-06,
Open Government Directive, December 8, 2009; see also http://www.whitehouse.gov/the-press-office/2011/06/13/executive-order-13576-delivering-efficient-effective-and-accountable-gov.
\77\ See U.S. Department of the Treasury, Open Government Plan
2.1, September 2012.
\78\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10282-83,
para. 35. See 47 CFR 1.1158.
\79\ Payors should note that this change will mean that to the
extent certain entities have to date paid both regulatory fees and
application fees at the same time via paper check, they will no
longer be able to do so as the regulatory fees payment via paper
check will no longer be accepted.
---------------------------------------------------------------------------
2. Revised Credit Card Transaction Levels
28. Since June 1, 2015, 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.\80\ 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, 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
2016 regulatory fee collection in Fact Sheets, available at https://www.fcc.gov/regfees.
---------------------------------------------------------------------------
\80\ 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.
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3. De Minimis Regulatory Fees
29. Regulatees whose total FY 2016 annual regulatory fee liability,
including all categories of fees for which payment is due, is $500 or
less are exempt from payment of FY 2016 regulatory fees. The de minimis
threshold applies only to filers of annual regulatory fees (not
regulatory fees paid through multi-year filings), and it is not a
permanent exemption. Each regulatee will need to reevaluate their total
fee liability each fiscal year to determine whether they meet the de
minimis exemption.
4. Standard Fee Calculations and Payment Dates
30. 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, 2015 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, 2015. For
providers of Direct Broadcast Satellite (DBS) service, regulatory fees
should be paid based on a subscriber count on or about December 31,
2015. In instances where a permit or license is transferred or assigned
after October 1, 2015, 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,
2015. In instances where a permit or license is transferred or assigned
after October 1, 2015, 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.\81\ For Responsible
Organizations (RespOrgs) that manage Toll Free Numbers (TFN),
regulatory fees should be paid on all working, assigned, and reserved
toll free numbers as well as toll free numbers in any other status as
defined in section 52.103 of the Commission's rules.\82\ The unit count
should be based on toll free numbers managed by RespOrgs on or about
December 31, 2015.
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\81\ Audio bridging services are toll teleconferencing services.
\82\ 47 CFR 52.103.
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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, 2015. The number of subscribers, units,
or telephone numbers on December 31, 2015 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, 2015,
responsibility for payment rests with the holder of the permit or
license as of the fee due date.
Wireless Services, Multi-year fees: The first eight
regulatory fee categories in our Schedule of Regulatory Fees 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 3) to publicize our estimates of the number of ``small multi-year
wireless'' licenses that will be renewed or newly obtained in FY 2016.
Multichannel Video Programming Distributor Services (cable
television operators and CARS licensees): Regulatory fees must be paid
for the number of basic cable television subscribers as of December 31,
2015.\83\
[[Page 35688]]
Regulatory fees also must be paid for CARS licenses that were granted
on or before October 1, 2015. In instances where a permit or license is
transferred or assigned after October 1, 2015, responsibility for
payment rests with the holder of the permit or license as of the fee
due date.
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\83\ Cable television system operators should compute their
number of basic subscribers as follows: Number of single family
dwellings + number of individual households in multiple dwelling
unit (apartments, condominiums, mobile home parks, etc.) paying at
the basic subscriber rate + bulk rate customers + courtesy and free
service. Note: Bulk-Rate Customers = Total annual bulk-rate charge
divided by basic annual subscription rate for individual households.
Operators may base their count on ``a typical day in the last full
week'' of December 2015, rather than on a count as of December 31,
2015.
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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, 2015. In instances where a permit
or license is transferred or assigned after October 1, 2015,
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, 2015. In instances where a license is transferred or assigned after
October 1, 2015, responsibility for payment rests with the holder of
the license as of the fee due date. For regulatory fee purposes, the
allocation in FY 2016 will remain at 87.6 percent for submarine cable
and 12.4 percent for satellite/terrestrial facilities.
International Services: (Terrestrial and Satellite
Services): Regulatory fees for Terrestrial and Satellite International
Bearer Circuits (IBCs) are to be paid by facilities-based common
carriers that have active (used or leased) international bearer
circuits as of December 31, 2015 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 used 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. For these purposes,
``active circuits'' include backup and redundant circuits as of
December 31, 2015. Whether circuits are used specifically for voice or
data is not relevant for purposes of determining that they are active
circuits.\84\ In instances where a permit or license is transferred or
assigned after October 1, 2015, 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 2016 will remain at 87.6
percent for submarine cable and 12.4 percent for satellite/terrestrial
facilities.\85\
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\84\ We encourage terrestrial and satellite service providers to
seek guidance from the International Bureau's Telecommunications and
Analysis Division to verify their particular IBC reporting processes
to ensure that their calculation methods comply with our rules.
\85\ We remind facilities-based common carriers to review their
reporting processes to ensure that they accurately calculate and
report IBCs.
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B. Commercial Mobile Radio Service (CMRS) Cellular and Mobile Services
Assessments
31. The Commission will compile data from the Numbering Resource
Utilization Forecast (NRUF) report that is based on ``assigned''
telephone number (subscriber) counts that have been adjusted for
porting to net Type 0 ports (``in'' and ``out'').\86\ This information
of telephone numbers (subscriber count) will be posted on the
Commission's electronic filing and payment system (Fee Filer) along
with the carrier's Operating Company Numbers (OCNs).
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\86\ See Assessment and Collection of Regulatory Fees for Fiscal
Year 2005, Report and Order and Order on Reconsideration, 20 FCC Rcd
12259, 12264, paras. 38-44 (2005).
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32. A carrier wishing to revise its telephone number (subscriber)
count can do so by accessing Fee Filer and follow the prompts to revise
their telephone number counts. Any revisions to the telephone number
counts should be accompanied by an explanation or supporting
documentation.\87\ The Commission will then review the revised count
and supporting documentation and either approve or disapprove the
submission in Fee Filer. If the submission is disapproved, the
Commission will contact the provider to afford the provider an
opportunity to discuss its revised subscriber count and/or provide
additional supporting documentation. If we receive no response from the
provider, or we do not reverse our initial disapproval of the
provider's revised count submission, the fee payment must be based on
the number of subscribers listed initially in Fee Filer. Once the
timeframe for revision has passed, the telephone number counts are
final and are the basis upon which CMRS regulatory fees are to be paid.
Providers can view their final telephone counts online in Fee Filer. A
final CMRS assessment letter will not be mailed out.
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\87\ In the supporting documentation, the provider will need to
state a reason for the change, such as a purchase or sale of a
subsidiary, the date of the transaction, and any other pertinent
information that will help to justify a reason for the change.
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33. Because some carriers do not file the NRUF report, they may not
see their telephone number counts in Fee Filer. In these instances, the
carriers should compute their fee payment using the standard
methodology that is currently in place for CMRS Wireless services
(i.e., compute their telephone number counts as of December 31, 2015),
and submit their fee payment accordingly. Whether a carrier reviews its
telephone number counts in Fee Filer or not, the Commission reserves
the right to audit the number of telephone numbers for which regulatory
fees are paid. In the event that the Commission determines that the
number of telephone numbers that are paid is inaccurate, the Commission
will bill the carrier for the difference between what was paid and what
should have been paid.
VI. Additional Tables
Table 3--Calculation of FY 2016 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]
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2015 Prorated FY
Fee category FY 2016 payment Years revenue 2016 revenue Computed FY Rounded FY Expected FY
units estimate requirement 2016 reg. fee 2016 reg. fee 2016 revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)...................... 2,500 10 546,000 625,938 25 25 625,000
PLMRS (Shared use) Includes Rural Radio 31,100 10 3,100,000 3,114,665 10 10 3,110,000
Service (47 CFR part 22)..................
Microwave.................................. 12,500 10 2,520,000 3,129,688 25 25 3,125,000
[[Page 35689]]
Marine (Ship).............................. 6,900 10 945,000 1,036,553 15 15 1,035,000
Aviation (Aircraft)........................ 4,700 10 420,000 470,705 10 10 470,000
Marine (Coast)............................. 480 10 171,500 192,288 40 40 192,000
Aviation (Ground).......................... 1,100 10 180,000 220,330 20 20 220,000
AM Class A\4\.............................. 66 1 281,125 314,451 4,764 4,775 315,150
AM Class B\4\.............................. 1,535 1 3,499,125 3,893,459 2,536 2,525 3,875,875
AM Class C\4\.............................. 889 1 1,244,600 1,409,299 1,585 1,575 1,400,175
AM Class D\4\.............................. 1,492 1 4,103,000 4,607,579 3,088 3,100 4,625,200
FM Classes A, B1 & C3 \4\.................. 3,122 1 8,613,000 9,652,908 3,092 3,100 9,678,200
FM Classes B, C, C0, C1 & C2 \4\........... 3,139 1 10,607,625 11,826,839 3,768 3,775 11,849,725
AM Construction Permits \1\................ 15 1 17,110 10,366 691 690 10,350
FM Construction Permits\1\................. 179 1 136,500 215,122 1,202 1,200 214,800
Satellite TV............................... 128 1 200,025 224,336 1,753 1,750 224,000
Digital TV Markets 1-10.................... 139 1 6,274,550 8,446,540 60,766 60,775 8,447,725
Digital TV Markets 11-25................... 139 1 5,918,400 6,358,412 45,744 45,750 6,359,250
Digital TV Markets 26-50................... 181 1 5,000,125 5,532,175 30,565 30,575 5534,075
Digital TV Markets 51-100.................. 283 1 4,605,825 4,311,203 15,234 15,225 4,308,675
Digital TV Remaining Markets............... 365 1 1,838,150 1,827,738 5,008 5,000 1,825,000
Digital TV Construction Permits\1\......... 3 1 9,700 15,023 5,000 5,000 15,000
LPTV/Translators/Boosters/Class A TV....... 3,924 1 1,601,600 1,788,098 456 455 1,785,420
CARS Stations.............................. 285 1 198,000 221,206 776 775 220,875
Cable TV Systems, including IPTV........... 64,100,000 1 61,920,000 64,196,150 1.0015 1.00 64,100,000
Direct Broadcast Satellite (DBS)........... 34,000,000 1 4,080,000 9,193,770 .2704 .27 9,180,000
Interstate Telecommunication Service $38,400,000,000 1 128,428,000 141,908,544 0.0036955 0.00370 142,080,000
Providers.................................
Toll Free Numbers.......................... 36,500,000 1 4,380,000 4,752,018 0.1302 0.13 4,745,000
CMRS Mobile Services (Cellular/Public 360,000,000 1 60,180,000 72,108,276 0.2003 0.20 72,000,000
Mobile)...................................
CMRS Messag. Services...................... 2,300,000 1 208,000 184,000 0.0800 0.080 184,000
BRS \2\.................................... 890 1 565,150 645,250 725 725 645,250
LMDS....................................... 395 1 238,125 286,375 725 725 286,375
Per 64 kbps Int'l Bearer Circuits 22,500,000 1 657,000 770,617 .0342 .03 675,000
Terrestrial (Common) & Satellite (Common &
Non-Common)...............................
Submarine Cable Providers (see chart in 39.19 1 4,652,576 5,444,038 138,914 138,925 5,444,471
Appendix B) \3\...........................
Earth Stations............................. 3,400 1 1,023,000 1,174,760 346 345 1,173,000
Space Stations (Geostationary)............. 95 1 11,438,400 13,174,858 138,683 138,675 13,174,125
Space Stations (Non-Geostationary)......... 6 1 792,750 913,068 152,178 152,175 913,050
****** Total Estimated Revenue to be .................. ....... 340,593,961 384,196,740 .............. .............. 384,066,766
Collected.............................
------------------------------------------------------------------------------------------------------------
****** Total Revenue Requirement....... .................. ....... 339,844,000 384,012,497 .............. .............. 384,012,497
------------------------------------------------------------------------------------------------------------
Difference......................... .................. ....... 749,961 184,243 .............. .............. 54,269
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table 3.
\1\ The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set the regulatory
fee to an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction Permit revenues
were also 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).
[[Page 35690]]
\3\ The chart at the end of Table 4 lists the submarine cable bearer circuit regulatory fees (common and non-common carrier basis) that resulted from
the adoption of Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Report and Order and Further Notice of Proposed Rulemaking, 24 FCC
Rcd 6388 (2008) and 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 2016 Regulatory Fee'' constitute a weighted average media regulatory fee by class of
service. The actual FY 2016 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4.
Table 4--Proposed Regulatory Fees FY 2016 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 category fee (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90). 25
Microwave (per license) (47 CFR part 101)............ 25
Marine (Ship) (per station) (47 CFR part 80)......... 15
Marine (Coast) (per license) (47 CFR part 80)........ 40
Rural Radio (47 CFR part 22) (previously listed under 10
the Land Mobile category)...........................
PLMRS (Shared Use) (per license) (47 CFR part 90).... 10
Aviation (Aircraft) (per station) (47 CFR part 87)... 10
Aviation (Ground) (per license) (47 CFR part 87)..... 20
CMRS Mobile/Cellular Services (per unit) (47 CFR .20
parts 20, 22, 24, 27, 80 and 90)....................
CMRS Messaging Services (per unit) (47 CFR parts 20, .08
22, 24 and 90)......................................
Broadband Radio Service (formerly MMDS/MDS) (per 725
license) (47 CFR part 27) Local Multipoint 725
Distribution Service (per call sign) (47 CFR, part
101)................................................
AM Radio Construction Permits........................ 690
FM Radio Construction Permits........................ 1,200
Digital TV (47 CFR part 73) VHF and UHF Commercial
Markets 1-10..................................... 60,775
Markets 11-25.................................... 45,750
Markets 26-50.................................... 30,575
Markets 51-100................................... 15,225
Remaining Markets................................ 5,000
Construction Permits............................. 5,000
Satellite Television Stations (All Markets).......... 1,750
Low Power TV, Class A TV, TV/FM Translators & 455
Boosters (47 CFR part 74)...........................
CARS (47 CFR part 78)................................ 775
Cable Television Systems (per subscriber) (47 CFR 1.00
part 76), Including IPTV............................
Direct Broadcast Service (DBS) (per subscriber) (as .27
defined by section 602(13) of the Act)..............
Interstate Telecommunication Service Providers (per .00370
revenue dollar).....................................
Toll Free (per toll free subscriber) (47 CFR section .13
52.101 (f) of the rules)............................
Earth Stations (47 CFR part 25)...................... 345
Space Stations (per operational station in 138,675
geostationary orbit) (47 CFR part 25) also includes
DBS Service (per operational station) (47 CFR part
100)................................................
Space Stations (per operational system in non- 152,175
geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits--Terrestrial/Satellites .03
(per 64KB circuit)..................................
Submarine Cable Landing Licenses Fee (per cable See Table Below
system).............................................
------------------------------------------------------------------------
FY 2016 Schedule of Regulatory Fees
[Table 4 continued]
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2016 RADIO STATION REGULATORY FEES
---------------------------------------------------------------------------------------------------------------------------------------------------------
FM Classes A, FM Classes B,
Population Served AM Class A AM Class B AM Class C AM Class D B1 & C3 C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................ $1,100 $795 $690 $760 $1,200 $1,375
25,001-75,000........................................... 1,650 1,200 1,025 1,150 1,800 2,050
75,001-150,000.......................................... 2,200 1,600 1,375 1,525 2,400 2,750
150,001-500,000......................................... 3,300 2,375 2,075 2,275 3,600 4,125
500,001-1,200,000....................................... 5,500 3,975 3,450 3,800 6,000 6,875
1,200,001-3,000,00...................................... 8,250 5,950 5,175 5,700 9,000 10,300
3,000,001-6,000,00...................................... 11,000 7,950 6,900 7,600 12,000 13,750
>6,000,000.............................................. 13,750 9,950 8,625 9,500 15,000 17,175
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 35691]]
FY 2016 SCHEDULE OF REGULATORY FEES
[International Bearer Circuits--Submarine Cable (Table 4 continued)]
------------------------------------------------------------------------
Submarine Cable Systems (capacity as of December 31,
2015) Fee amount
------------------------------------------------------------------------
< 2.5 Gbps.............................................. $8,675
2.5 Gbps or greater, but less than 5 Gbps............... 17,375
5 Gbps or greater, but less than 10 Gbps................ 34,725
10 Gbps or greater, but less than 20 Gbps............... 69,475
20 Gbps or greater...................................... 138,925
------------------------------------------------------------------------
Table 5--Sources of Payment Unit Estimates for FY 2016
In order to calculate individual service fees for FY 2016, we
adjusted FY 2015 payment units for each service to more accurately
reflect expected FY 2016 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 2016 estimates with actual FY 2015
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 2016 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 2016 payment units are based on FY 2015
actual payment units, it does not necessarily mean that our FY 2016
projection is exactly the same number as in FY 2015. We have either
rounded the FY 2016 number or adjusted it slightly to account for these
variables.
------------------------------------------------------------------------
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 2015 payment data.
CMRS Messaging Services........... Based on WTB reports, and FY 2015
payment data.
AM/FM Radio Stations.............. Based on CDBS data, adjusted for
exemptions, and actual FY 2015
payment units.
Digital TV Stations (Combined VHF/ Based on CDBS data, adjusted for
UHF units). exemptions, and actual FY 2015
payment units.
AM/FM/TV Construction Permits..... Based on CDBS data, adjusted for
exemptions, and actual FY 2015
payment units.
LPTV, Translators and Boosters, Based on CDBS data, adjusted for
Class A Television. exemptions, and actual FY 2015
payment units.
BRS (formerly MDS/MMDS)........... Based on WTB reports and actual FY
2015 payment units.
LMDS.............................. Based on WTB reports and actual FY
2015 payment units.
Cable Television Relay Service Based on data from Media Bureau's
(CARS) Stations. COALS database and actual FY 2015
payment units.
Cable Television System Based on publicly available data
Subscribers, Including IPTV sources for estimated subscriber
Subscribers. counts and actual FY 2015 payment
units.
Interstate Telecommunication Based on FCC Form 499-Q data for the
Service Providers. four quarters of calendar year
2015, the Wireline Competition
Bureau projected the amount of
calendar year 2015 revenue that
will be reported on 2016 FCC Form
499-A worksheets in April 2016.
Earth Stations.................... Based on International Bureau (IB)
licensing data and actual FY 2015
payment units.
Space Stations (GSOs & NGSOs)..... Based on IB data reports and actual
FY 2015 payment units.
International Bearer Circuits..... Based on IB reports and submissions
by licensees, adjusted as
necessary.
Submarine Cable Licenses.......... Based on IB license information.
------------------------------------------------------------------------
Table 6--Factors, Measurements, and Calculations That Determines
Station Signal Contours and Associated Population Coverages
AM Stations
For stations with nondirectional daytime antennas, the theoretical
radiation was used at all azimuths. For stations with directional
daytime antennas, specific information on each day tower, including
field ratio, phase, spacing, and orientation was retrieved, as well as
the theoretical pattern root-mean-square of the radiation in all
directions in the horizontal plane (RMS) figure (milliVolt per meter
(mV/m) @1 km) for the antenna system. The standard, or augmented
standard if pertinent, horizontal plane radiation pattern was
calculated using techniques and methods specified in sections 73.150
and 73.152 of the Commission's rules. Radiation values were calculated
for each of 360 radials around the transmitter site. Next, estimated
soil conductivity data was retrieved from a database representing the
information in FCC Figure R3. Using the calculated horizontal radiation
values, and the
[[Page 35692]]
retrieved soil conductivity data, the distance to the principal
community (5 mV/m) contour was predicted for each of the 360 radials.
The resulting distance to principal community contours were used to
form a geographical polygon. Population counting was accomplished by
determining which 2010 block centroids were contained in the polygon.
(A block centroid is the center point of a small area containing
population as computed by the U.S. Census Bureau.) The sum of the
population figures for all enclosed blocks represents the total
population for the predicted principal community coverage area.
FM Stations
The greater of the horizontal or vertical effective radiated power
(ERP) (kW) and respective height above average terrain (HAAT) (m)
combination was used. Where the antenna height above mean sea level
(HAMSL) was available, it was used in lieu of the average HAAT figure
to calculate specific HAAT figures for each of 360 radials under study.
Any available directional pattern information was applied as well, to
produce a radial-specific ERP figure. The HAAT and ERP figures were
used in conjunction with the Field Strength (50-50) propagation curves
specified in 47 CFR 73.313 of the Commission's rules to predict the
distance to the principal community (70 dBu (decibel above 1 microVolt
per meter) or 3.17 mV/m) contour for each of the 360 radials. The
resulting distance to principal community contours were used to form a
geographical polygon. Population counting was accomplished by
determining which 2010 block centroids were contained in the polygon.
The sum of the population figures for all enclosed blocks represents
the total population for the predicted principal community coverage
area.
Table 7--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
Fee category regulatory fee
(U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90).... 30
Microwave (per license) (47 CFR part 101)............... 20
Marine (Ship) (per station) (47 CFR part 80)............ 15
Marine (Coast) (per license) (47 CFR part 80)........... 35
Rural Radio (47 CFR part 22) (previously listed under 10
the Land Mobile category)..............................
PLMRS (Shared Use) (per license) (47 CFR part 90)....... 10
Aviation (Aircraft) (per station) (47 CFR part 87)...... 10
Aviation (Ground) (per license) (47 CFR part 87)........ 20
CMRS Mobile/Cellular Services (per unit) (47 CFR parts .17
20, 22, 24, 27, 80 and 90).............................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, .08
24 and 90).............................................
Broadband Radio Service (formerly MMDS/MDS) (per 635, 635
license) (47 CFR part 27), Local Multipoint
Distribution Service (per 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........................................ 46,825
Markets 11-25....................................... 43,200
Markets 26-50....................................... 27,625
Markets 51-100...................................... 16,275
Remaining Markets................................... 4,850
Construction Permits................................ 4,850
Satellite Television Stations (All Markets)............. 1,575
Low Power TV, Class A TV, TV/FM Translators & Boosters 440
(47 CFR part 74).......................................
CARS (47 CFR part 78)................................... 660
Cable Television Systems (per subscriber) (47 CFR part .96
76), Including IPTV....................................
Direct Broadcast Service (DBS) (per subscriber) (as .12
defined by section 602(13) of the Act).................
Interstate Telecommunication Service Providers (per .00331
revenue dollar)........................................
Toll Free (per toll free subscriber) (47 CFR section .12
52.101 (f) of the rules)...............................
Earth Stations (47 CFR part 25)......................... 310
Space Stations (per operational station in geostationary 119,150
orbit) (47 CFR part 25) also includes DBS Service (per
operational station) (47 CFR part 100).................
Space Stations (per operational system in non- 132,125
geostationary orbit) (47 CFR part 25)..................
International Bearer Circuits--Terrestrial/Satellites .03
(per 64KB circuit).....................................
Submarine Cable Landing Licenses Fee (per cable system). See Table
Below.
------------------------------------------------------------------------
FY 2015 Radio Station Regulatory Fees (Table 7 continued)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FM Classes A, FM Classes B,
Population served AM Class A AM Class B AM Class C AM Class D B1 & C3 C, C0, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................ $775 $645 $590 $670 $750 $925
25,001-75,000........................................... 1,550 1,300 900 1,000 1,500 1,625
75,001-150,000.......................................... 2,325 1,625 1,200 1,675 2,050 3,000
150,001-500,000......................................... 3,475 2,750 1,800 2,025 3,175 3,925
500,001-1,200,000....................................... 5,025 4,225 3,000 3,375 5,050 5,775
1,200,001-3,000,00...................................... 7,750 6,500 4,500 5,400 8,250 9,250
[[Page 35693]]
>3,000,000.............................................. 9,300 7,800 5,700 6,750 10,500 12,025
--------------------------------------------------------------------------------------------------------------------------------------------------------
International Bearer Circuits--Submarine Cable (Table 7 Continued)
------------------------------------------------------------------------
Submarine cable systems (capacity as of December 31,
2014) Fee amount
------------------------------------------------------------------------
<2.5 Gbps............................................... $7,175
2.5 Gbps or greater, but less than 5 Gbps............... 14,350
5 Gbps or greater, but less than 10 Gbps................ 28,675
10 Gbps or greater, but less than 20 Gbps............... 57,350
20 Gbps or greater...................................... 114,700
------------------------------------------------------------------------
Initial Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\88\ 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).\89\ In addition,
the NPRM and IRFA (or summaries thereof) will be published in the
Federal Register.\90\
---------------------------------------------------------------------------
\88\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by
the Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
\89\ 5 U.S.C. 603(a).
\90\ Id.
---------------------------------------------------------------------------
A. Need for, and Objectives of, the Notice
2. The NPRM seeks comment regarding adopting proposed regulatory
fees for Fiscal Year 2016. The proposed regulatory fees are attached to
the NPRM in Table 4. The Commission is required by Congress to adopt
regulatory fees each year ``to recover the costs of . . . enforcement
activities, policy and rulemaking activities, user information
services, and international activities.'' \91\ The NPRM proposes no new
changes in the Commission's methodology, but does seek comment on the
following. (i) As Direct Broadcast Satellites (DBS), along with other
Multichannel Video Programming Distributors (MVPDs), receive oversight
and regulation by Media Bureau FTEs in, e.g., the implementation of the
Commercial Advertisement Loudness Mitigation Act (CALM Act),\92\ the
Twenty-First Century Communications and Video Accessibility Act of 2010
(CVAA),\93\ and the Satellite Television Extension and Localism Act
(STELA) Reauthorization Act of 2014 (STELAR), the NPRM proposes an
increase in the DBS fee rate to 27 cents per DBS subscriber. (ii) As
radio stations expand in ever increasing large markets, the population
threshold of ``greater than 3,000,000'' is no longer an adequate
threshold. As a result, the NPRM proposes to raise the population
threshold of broadcasters to ``greater than 6,000,000'' to reflect
increases in the population in major broadcast markets. In addition,
the Commission also proposes to adjust the fee rates of television
stations to reflect a higher proportional fee for large markets
compared to medium and smaller markets. (iii) The Commission seeks
comment on how providers of international bearer circuits should count
their circuits to maintain consistency across all carriers to ensure
that all providers are calculating and reporting IBCs in the same
manner. (iv) The Commission received a proposal from ITTA to combine
CMRS and ITSP revenues together for the purpose of determining a single
regulatory fee rate for the CMRS and ITSP regulatory fee categories.
After reviewing ITTA's proposal, the Commission tentatively concludes
not to combine wireless and interstate revenues, add a subcategory for
CMRS in the ITSP fee category, or reallocate Wireline Competition
Bureau FTEs to the Wireless Telecommunications Bureau for the purpose
of calculating regulatory fees. The Commission does, however, seek
comment on regulatory fee reform, including the reallocation of direct
FTEs, including those FTEs working on universal service and numbering
issues. (v) Finally, the Commission seeks comment on increasing earth
station fees relative to space station fees.
---------------------------------------------------------------------------
\91\ 47 U.S.C. 159(a).
\92\ See Implementation of the Commercial Advertisement,
Loudness Mitigation (CALM) Act, Report and Order, 26 FCC Rcd 17222
(2011) (CALM Act Report and Order).
\93\ Public Law Number 111-260, 124 Stat. 2751 (2010). See also
Amendment of Twenty-First Century Communications and Video
Accessibility Act of 2010, Public Law Number 111-265, 124 Stat. 2795
(2010) (making corrections to the CVAA); 47 CFR part 79.
---------------------------------------------------------------------------
B. Legal Basis
3. This action, including publication of proposed rules, is
authorized under sections (4)(i) and (j), 9, and 303(r) of the
Communications Act of 1934, as amended.\94\
---------------------------------------------------------------------------
\94\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
---------------------------------------------------------------------------
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.\95\ The RFA
generally defines the term ``small entity'' as having the same meaning
as the terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' \96\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\97\ 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.\98\
---------------------------------------------------------------------------
\95\ 5 U.S.C. 603(b)(3).
\96\ 5 U.S.C. 601(6).
\97\ 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.''
\98\ 15 U.S.C. 632.
---------------------------------------------------------------------------
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.\99\ As of 2009, small businesses represented 99.9
percent of the 27.5 million businesses in the United States, according
to the SBA.\100\ In addition, a
[[Page 35694]]
``small organization is generally any not-for-profit enterprise which
is independently owned and operated and not dominant in its field.\101\
Nationwide, as of 2007, there were approximately 1,621,215 small
organizations.\102\ In addition, 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.'' \103\ Census Bureau data for
2011 indicate that there were 90,056 local governmental jurisdictions
in the United States.\104\ We estimate that, of this total, as many as
89,327 entities may qualify as ``small governmental jurisdictions.''
\105\ Thus, we estimate that most local government jurisdictions are
small. Finally, small entities may include Responsible Organizations
(RespOrgs), which are entities chosen by toll free subscribers to
manage and administer the appropriate records in the toll free Service
Management System for the toll free subscriber.\106\ Although RespOrgs
are often wireline carriers, they can also include other non-carrier
entities. Please refer to each group that is acting as a RespOrg
identified in this section of the IRFA. From the data on the SMS/800
Web site,\107\ we estimate that there are approximately 459 RespOrgs,
and applying the size standard of 1500 employees is appropriate because
most RespOrgs at this time, are wireline-based or wireless-based. We
believe that the majority of RespOrgs are small entities under that
size standard.\108\
---------------------------------------------------------------------------
\99\ See 5 U.S.C. 601(3)-(6).
\100\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at http://www.sba.gov/faqs/faqindex.cfm?arealD=24.
\101\ 5 U.S.C. 601(4).
\102\ See Independent Sector, The New Nonprofit Almanac and Desk
Reference (2010).
\103\ 5 U.S.C. 601(5).
\104\ See SBA, Office of Advocacy, ``Frequently Asked
Questions,'' available at http.www.sba.gov/sites/default/files.FAQMarch201_O.pdf.
\105\ 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.
\106\ 47 CFR 52.101(b).
\107\ https://www.somos.com/. SMS/800, Inc. is now Somos, Inc.
\108\ See, e.g., 13 CFR 121.101; NAICS Code 517110; NAICS Code
517210. For purposes of this IRFA, because a substantial percentage
of RespOrgs are wireless-based or wireline-based, the standard size
applicable to these carriers is referenced.
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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.'' \109\ 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.\110\ 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.\111\ Thus, under
this size standard, the majority of firms in this industry can be
considered small.
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\109\ See http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\110\ See 13 CFR 120.201, 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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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.\112\ According to census data
from 2007, there were 3,188 establishments that operated that year. Of
this total, 3,144 operated with fewer than 1,000 employees.\113\ The
Commission estimates that most providers of local exchange service are
small entities that may be affected by the rules and policies proposed
in the NPRM.
---------------------------------------------------------------------------
\112\ 13 CFR 121.201, NAICS code 517110.
\113\ See id.
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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.\114\ According to census data from 2007, 3,188 firms
operated in that year. Of this total, 3,144 operated with fewer than
1,000 employees.\115\ According to the Industry Analysis Branch of the
Wireline Competition Bureau, 1,307 carriers reported that they were
incumbent local exchange service providers.\116\ Of this total of 1,307
incumbent local exchange service providers, an estimated 1,006 operated
with 1,500 or fewer employees \117\ 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.
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\114\ 13 CFR 121.201, NAICS code 517110.
\115\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5 &prodType= table.
\116\ 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).
\117\ See 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.\118\ U.S. Census data for 2007 indicate that 3,188
firms operated during that year. Of that number, 3,144 operated with
fewer than 1,000 employees.\119\ 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 the Commission's Industry Analysis Division of
the Wireline Competition Bureau data, 1,442 carriers reported that they
were engaged in the provision of either competitive local exchange
services or competitive access provider services.\120\ Of these 1,442
carriers, an estimated 1,256 have 1,500 or fewer employees. In
addition, 17 carriers have reported that
[[Page 35695]]
they are Shared-Tenant Service Providers, and all 17 are estimated to
have 1,500 or fewer employees.\121\ In addition, 72 carriers have
reported that they are Other Local Service Providers.\122\ Of this
total, 70 have 1,500 or fewer employees.\123\ 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.
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\118\ 13 CFR 121.201, NAICS code 517110.
\119\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=%20table.
\120\ See Trends in Telephone Service, at Table 5.3.
\121\ Id.
\122\ Id.
\123\ 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.\124\ According to Commission's Industry Analysis Division of
the Wireline Competition Bureau data, 359 companies reported that their
primary telecommunications service activity was the provision of
interexchange services.\125\ Of this total, an estimated 317 have 1,500
or fewer employees and 42 have more than 1,500 employees.\126\
Consequently, the Commission estimates that the majority of
interexchange service providers are small entities that may be affected
by rules adopted pursuant to the NPRM.
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\124\ 13 CFR 121.201, NAICS code 517110.
\125\ See Trends in Telephone Service, at Table 5.3.
\126\ Id.
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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.\127\ Under
the applicable SBA size standard, such a business is small if it has
1,500 or fewer employees.\128\ 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.\129\ 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's Industry Analysis Division of the
Wireline Competition Bureau data, 193 carriers have reported that they
are engaged in the provision of prepaid calling cards.\130\ All 193
carriers have 1,500 or fewer employees.\131\ 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.
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\127\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch.
\128\ 13 CFR 121.201, NAICS code 517911.
\129\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\130\ See Trends in Telephone Service, at Table 5.3.
\131\ 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.\132\ 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.\133\ Under this category and the associated
small business size standard, the majority of these local resellers can
be considered small entities. According to Commission's Industry
Analysis Division of the Wireline Competition Bureau data, 213 carriers
have reported that they are engaged in the provision of local resale
services.\134\ Of this total, an estimated 211 have 1,500 or fewer
employees.\135\ 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.
---------------------------------------------------------------------------
\132\ 13 CFR 121.201, NAICS code 517911.
\133\ Id.
\134\ See Trends in Telephone Service, at Table 5.3.
\135\ Id.
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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.\136\ 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.\137\ Thus, under this
category and the associated small business size standard, the majority
of these resellers can be considered small entities. According to
Commission's Industry Analysis Division of the Wireline Competition
Bureau data, 881 carriers have reported that they are engaged in the
provision of toll resale services.\138\ Of this total, an estimated 857
have 1,500 or fewer employees.\139\ Consequently, the Commission
estimates that the majority of toll resellers are small entities that
may be affected by our proposals in the NPRM.
---------------------------------------------------------------------------
\136\ 13 CFR 121.201, NAICS code 517911.
\137\ Id.
\138\ Trends in Telephone Service, at Table 5.3.
\139\ Id.
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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.\140\ 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.\141\ Thus, under this category and the
associated small business size standard, the majority of Other Toll
Carriers can be considered small. According to Commission's Industry
Analysis Division of the Wireline Competition Bureau data, 284
companies reported that their primary telecommunications service
activity was the provision of other toll carriage.\142\ Of these, an
estimated 279 have 1,500 or fewer employees.\143\ Consequently, the
Commission estimates that most Other Toll Carriers are small entities
that may be affected by the rules adopted pursuant to the NPRM.
---------------------------------------------------------------------------
\140\ 13 CFR 121.201, NAICS code 517110.
\141\ Id.
\142\ Trends in Telephone Service, at Table 5.3.
\143\ Id.
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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.\144\ The appropriate size
[[Page 35696]]
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's Industry Analysis Division of the Wireline
Competition Bureau 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.\145\ Of this total, an estimated 261 have 1,500 or
fewer employees.\146\ 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 and may be affected by rules adopted pursuant to this
NPRM.
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\144\ NAICS Code 517210. See http://www.census.gov/cgi-bin/ssd/naics/naiscsrch.
\145\ Trends in Telephone Service, at Table 5.3.
\146\ Id.
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16. Television Broadcasting. This Economic Census category
``comprises establishments primarily engaged in broadcasting images
together with sound. These establishments operate television
broadcasting studios and facilities for the programming and
transmission of programs to the public.'' \147\ The SBA has created the
following small business size standard for Television Broadcasting
firms: those having $14 million or less in annual receipts.\148\ The
Commission has estimated the number of licensed commercial television
stations to be 1,387.\149\ In addition, according to Commission staff
review of the BIA Advisory Services, LLC's Media Access Pro Television
Database on March 28, 2012, about 950 of an estimated 1,300 commercial
television stations (or approximately 73 percent) had revenues of $14
million or less.\150\ We therefore estimate that the majority of
commercial television broadcasters are small entities.
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\147\ U.S. Census Bureau, 2007 NAICS Definitions, ``515120
Television Broadcasting'' (partial definition); http://www.census.gov/naics/2007/def/ND515120.HTM#N515120.
\148\ 13 CFR 121.201, NAICS code 515120 (updated for inflation
in 2010).
\149\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
\150\ We recognize that BIA's estimate differs slightly from the
FCC total given supra.
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17. We note, however, that in assessing whether a business concern
qualifies as small under the above definition, business (control)
affiliations \151\ must be included. Our estimate, therefore, likely
overstates the number of small entities that might be affected by our
action, because the revenue figure on which it is based does not
include or aggregate revenues from affiliated companies. In addition,
an element of the definition of ``small business'' is that the entity
not be dominant in its field of operation. We are unable at this time
to define or quantify the criteria that would establish whether a
specific television station is dominant in its field of operation.
Accordingly, the estimate of small businesses to which rules may apply
does not exclude any television station from the definition of a small
business on this basis and is therefore possibly over-inclusive to that
extent.
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\151\ ``[Business concerns] are affiliates of each other when
one concern controls or has the power to control the other or a
third party or parties controls or has to power to control both.''
13 CFR 21.103(a)(1).
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18. In addition, the Commission has estimated the number of
licensed noncommercial educational (NCE) television stations to be
396.\152\ These stations are non-profit, and therefore considered to be
small entities.\153\ There are also 2,528 low power television
stations, including Class A stations (LPTV).\154\ Given the nature of
these services, we will presume that all LPTV licensees qualify as
small entities under the above SBA small business size standard.
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\152\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
\153\ See generally 5 U.S.C. 601(4), (6).
\154\ See FCC News Release, ``Broadcast Station Totals as of
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
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19. Radio Broadcasting. This Economic Census category ``comprises
establishments primarily engaged in broadcasting aural programs by
radio to the public. Programming may originate in their own studio,
from an affiliated network, or from external sources. \155\ The SBA has
established a small business size standard for this category, which is:
Such firms having $7 million or less in annual receipts.\156\ According
to Commission staff review of BIA Advisory Services, LLC's Media Access
Pro Radio Database on March 28, 2012, about 10,759 (97%) of 11,102
commercial radio stations had revenues of $7 million or less.
Therefore, the majority of such entities are small entities.
---------------------------------------------------------------------------
\155\ U.S. Census Bureau, 2007 NAICS Definitions, ``515112 Radio
Stations''; http://www.census.gov/naics/2007/def/ND515112.HTM#N515112.
\156\ 13 CFR 121.201, NAICS code 515112 (updated for inflation
in 2010).
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20. We note, however, that in assessing whether a business concern
qualifies as small under the above size standard, business affiliations
must be included.\157\ In addition, to be determined to be a ``small
business,'' the entity may not be dominant in its field of
operation.\158\ We note that it is difficult at times to assess these
criteria in the context of media entities, and our estimate of small
businesses may therefore be over-inclusive.
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\157\ ``Concerns and entities are affiliates of each other when
one controls or has the power to control the other, or a third party
or parties controls or has the power to control both. It does not
matter whether control is exercised, so long as the power to control
exists.'' 13 CFR 121.103(a)(1) (an SBA regulation).
\158\ 13 CFR 121.102(b) (an SBA regulation).
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21. Cable Television and other Subscription Programming.\159\ 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
[[Page 35697]]
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.'' \160\ The SBA has
developed a small business size standard for this category, which is:
all such firms having 1,500 or fewer employees.\161\ 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.\162\ 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.
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\159\ 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 the Notice. 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
operatin6 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.
http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51I2&prodType=table.
\160\ U.S. Census Bureau, 2007 NAICS Definitions, ``517110 Wired
Telecommunications Carriers'' (partial definition), (full definition
stated in para. 6 of this IRFA) available at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\161\ 13 CFR 121.201, NAICS code 517110.
\162\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=Table">http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=Table.
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22. 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.\163\ Industry data
indicate that there are currently 4,600 active cable systems in the
United States.\164\ Of this total, all but ten cable operators
nationwide are small under the 400,000-subscriber size standard.\165\
In addition, under the Commission's rate regulation rules, a ``small
system'' is a cable system serving 15,000 or fewer subscribers.\166\
Current Commission records show 4,600 cable systems nationwide.\167\ Of
this total, 3,900 cable systems have less than 15,000 subscribers, and
700 systems have 15,000 or more subscribers, based on the same
records.\168\ Thus, under this standard as well, the Commission
estimates that most cable systems are small entities.
---------------------------------------------------------------------------
\163\ 47 CFR 76.901(e).
\164\ August 15, 2015 Report from the Media Bureau based on data
contained in the Commission's Cable Operations And Licensing System
(COALS). See www/fcc.gov/coals.
\165\ See SNL KAGAN at www.snl.com/interactiveX/top cableMSOs
aspx?period2015Q1&sortcol=subscribersbasic&sortorder=desc.
\166\ 47 CFR 76.901(c).
\167\ See footnote 2, supra.
\168\ August 5, 2015 report from the Media Bureau based on its
research in COALS. See www.fcc.gov/coals.
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23. Cable System Operators (Telecom Act Standard). The
Communications Act of 1934, as amended, also contains a size standard
for small cable system operators, which is ``a cable operator that,
directly or through an affiliate, serves in the aggregate fewer than 1
percent of all subscribers in the United States and is not affiliated
with any entity or entities whose gross annual revenues in the
aggregate exceed $250,000,000 are approximately 52,403,705 cable video
subscribers in the United States today.\169\ Accordingly, an operator
serving fewer than 524,037 subscribers shall be deemed a small operator
if its annual revenues, when combined with the total annual revenues of
all its affiliates, do not exceed $250 million in the aggregate.\170\
Based on available data, we find that all but nine incumbent cable
operators are small entities under this size standard.\171\ We note
that the Commission neither requests nor collects information on
whether cable system operators are affiliated with entities whose gross
annual revenues exceed $250 million.\172\ Although it seems certain
that some of these cable system operators are affiliated with entities
whose gross annual revenues exceed $250,000,000, we are unable at this
time to estimate with greater precision the number of cable system
operators that would qualify as small cable operators under the
definition in the Communications Act.
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\169\ See SNL KAGAN at www.snl.com/interactivex/MultichannelIndustryBenchmarks.aspx.
\170\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
\171\ See SNL KAGAN at www.snl.com/Interactivex/TopCableMSOs.aspx.
\172\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's
finding that the operator does not qualify as a small cable operator
pursuant to section 76.901(f) of the Commission's rules. See 47 CFR
76.901(f).
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24. Direct Broadcast Satellite (DBS) Service. DBS Service is a
nationally distributed subscription service that delivers video and
audio programming via satellite to a small parabolic dish antenna at
the subscriber's location. DBS is now included in SBA's economic census
category ``Wired Telecommunications Carriers.'' The Wired
Telecommunications Carriers 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 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.\173\ The SBA determines that a wireline business is
small if it has fewer than 1500 employees.\174\ Census data for 2007
indicate that 3,188 wireline companies were operational during that
year. Of that number, 3,144 operated with fewer than 1,000
employees.\175\ Based on that data, we conclude that the majority of
wireline firms are small under the applicable standard. However,
currently only two entities provide DBS service, which requires a great
deal of capital for operation: DIRECTV (now owned by AT&T) and DISH
Network.\176\ DIRECTV and DISH Network each report annual revenues that
are in excess of the threshold for a small business. Accordingly, we
must conclude that internally developed FCC data are persuasive that in
general DBS service is provided only by large firms.
---------------------------------------------------------------------------
\173\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
\174\ NAICs CODE 517110; 13.CFR 121.201.
\175\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_51SSSZ5&prodType=table.
\176\ See 15th Annual Video Competition Report, 28 FCC Rcd at
1057, Section 27. As of June 2012, DIRECTV is the largest DBS
operator and the second largest MVPD in the United States, serving
19.9 million subscribers. DISH Network is the second largest DBS
operator and the third largest MVPD operator, serving 14 million
subscribers. Id. at 10507, 10546, section 27, 110-11.
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25. 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.\177\ The SBA has
developed a small business size standard for ``All Other
Telecommunications,'' which consists of all such firms with gross
[[Page 35698]]
annual receipts of $32.5 million or less.\178\ 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.\179\ Thus, a majority of ``All Other
Telecommunications'' firms potentially affected by the proposals in the
NPRM can be considered small.
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\177\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
\178\ 13 CFR 121.201; NAICs Code 517919.
\179\ 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
26. This NPRM does not propose any changes to the Commission's
current information collection, reporting, recordkeeping, or compliance
requirements.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
27. 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.\180\
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\180\ 5 U.S.C. 603(c)(1)-(c)(4).
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28. This NPRM seeks comment on the Commission's regulatory fee
collection for Fiscal Year 2016, as required by Congress each year.
Specifically, we ask for comments each year in the Regulatory
Flexibility Analysis on how to minimize adverse economic impact,
imposed by our proposed rules, on small entities. The regulatory fees
proposed in this NPRM do not include any new fee categories. However,
the proposal in FY 2016 to revise the broadcasters' fee grid to include
a threshold ``greater than 6,000,000'', and a change in the television
fee amounts so that large markets pay a higher proportional fee than
small and medium-sized markets, will provide some relief to small
broadcast and television entities. The increase in the de minimis
amount to $500 implemented in FY 2015 has already provided financial
relief to smaller entities.
F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
29. None.
VII. Ordering Clauses
30. 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 Notice of Proposed
Rulemaking is hereby adopted.
31. 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.
Marlene H. Dortch,
Secretary.
[FR Doc. 2016-13087 Filed 6-2-16; 8:45 am]
BILLING CODE 6712-01-P