[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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    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
--------------------------------------------------------------------------------------------------------------------------------------------------------

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

    \51\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10280-81, 
para. 29.

                                 Table 2
------------------------------------------------------------------------
         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
------------------------------------------------------------------------

    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?
---------------------------------------------------------------------------

    \54\ See para. 22 infra.
    \55\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd 10268, 
10283-85, para. 40 and n.128.
---------------------------------------------------------------------------

    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?
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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

    \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.
---------------------------------------------------------------------------

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

    \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).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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

    \81\ Audio bridging services are toll teleconferencing services.
    \82\ 47 CFR 52.103.
---------------------------------------------------------------------------

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

    \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.
---------------------------------------------------------------------------

     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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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).
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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

    \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.
---------------------------------------------------------------------------

    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\
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    \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.
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    5. Small Entities. Our actions, over time, may affect small 
entities that are not easily categorized at present. We therefore 
describe here, at the outset, three comprehensive small entity size 
standards that could be directly affected by the proposals under 
consideration.\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\
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    \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.
---------------------------------------------------------------------------

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

    \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.
---------------------------------------------------------------------------

    \124\ 13 CFR 121.201, NAICS code 517110.
    \125\ See Trends in Telephone Service, at Table 5.3.
    \126\ Id.
---------------------------------------------------------------------------

    11. Prepaid Calling Card Providers. Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
prepaid calling card providers. The appropriate NAICS Code category for 
prepaid calling card providers is Telecommunications Resellers. This 
industry comprises establishments engaged in purchasing access and 
network capacity from owners and operators of telecommunications 
networks and reselling wired and wireless telecommunications services 
(except satellite) to businesses and households. Mobile virtual 
networks operators (MVNOs) are included in this industry.\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.
---------------------------------------------------------------------------

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

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

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

    \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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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

    \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).
---------------------------------------------------------------------------

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

    \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.
---------------------------------------------------------------------------

    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).
---------------------------------------------------------------------------

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

    \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).
---------------------------------------------------------------------------

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

    \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.
---------------------------------------------------------------------------

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

    \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).
---------------------------------------------------------------------------

    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.
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    \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