[Federal Register Volume 81, Number 186 (Monday, September 26, 2016)]
[Rules and Regulations]
[Pages 65926-65948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22216]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 16-166; FCC 16-121]


Assessment and Collection of Regulatory Fees for Fiscal Year 2016

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document the Commission revises its Schedule of 
Regulatory Fees to recover an amount of $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 for annual ``Mandatory 
Adjustments'' and ``Permitted Amendments'' to the Schedule of 
Regulatory Fees.

DATES: Effective September 26, 2016. To avoid penalties and interest, 
regulatory fees should be paid by the due date of September 27, 2016.

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

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order (R&O), FCC 16-121, MD Docket No. 16-166, adopted on September 
1, 2016 and released on September 2, 2016.

I. Administrative Matters

A. Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980 (RFA),\1\ 
the Commission has prepared a Final Regulatory Flexibility Analysis 
(FRFA) relating to this Report and Order. The FRFA is located towards 
the end of this document.
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    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996). 
The SBREFA was enacted as Title II of the Contract with America 
Advancement Act of 1996 (CWAAA).
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B. Final Paperwork Reduction Act of 1995 Analysis

    2. 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).

C. Congressional Review Act

    3. The Commission will send a copy of this Report and Order to 
Congress and the Government Accountability Office pursuant to the 
Congressional Review Act, 5 U.S.C. 801(a)(1)(A).

II. Introduction

    4. This Report and Order adopts a schedule of regulatory fees to 
assess and collect $384,012,497.00 in regulatory fees for Fiscal Year 
(FY) 2016, pursuant to Section 9 of the Communications Act of 1934, as 
amended (Communications Act or Act) and the Commission's FY 2016 
Appropriation.\2\ The schedule of regulatory fees for FY 2016 adopted 
here is attached in Table 4. These regulatory fees are due on September 
27, 2016. The FY 2016 regulatory fees are based on the proposals in the 
FY 2016 NPRM,\3\ considered in light of the comments received and 
Commission analysis. The FY 2016 regulatory fee schedule includes the 
following changes from last year: (1) An increase in regulatory fees 
across all fee categories to offset the Commission's facilities 
reduction costs; \4\ (2) an updated regulatory fee for Direct Broadcast 
Satellite (DBS) providers, a subcategory in the cable television and 
Internet Protocol Television (IPTV) category; and (3) adjustments to 
the regulatory fees on radio and television broadcasters, based on type 
and class of service and on the population served.
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    \2\ 47 U.S.C. 159. Consolidated Appropriations Act, 2016, Public 
Law 114-113, Dec. 18, 2015.
    \3\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2016, Notice of Proposed Rulemaking, 81 FR 35680 (June 3, 2016) 
(2016) (FY 2016 NPRM).
    \4\ The proposed regulatory fee rates for FY 2016 includes a 
one-time amount of $44,168,497 to offset facilities reduction costs, 
i.e., to reduce the office space footprint and/or move the FCC 
office location if necessary. Consolidated Appropriations Act, 2016, 
Public Law 114-113, Dec. 18, 2015. See FCC's Lease Prospectus, 
available at http://www.gsa.gov/portal/category/100435.
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III. Background

    5. Congress adopted a regulatory fee schedule in 1993 \5\ and 
authorized the Commission to assess and collect annual regulatory fees 
pursuant to the schedule, as amended by the Commission.\6\ As a result, 
the Commission annually reviews the regulatory fee schedule, proposes 
changes to the schedule to reflect changes in the amount of its 
appropriation, and proposes increases or decreases to the schedule of 
regulatory fees.\7\ The Commission makes changes to the regulatory fee 
schedule ``if the Commission determines that the schedule requires 
amendment to comply with the requirements'' \8\ of section 9(b)(1)(A) 
of the Act.\9\ The Commission may also add, delete, or reclassify 
services in the fee schedule to reflect additions, deletions, or 
changes in the nature of its services ``as a consequence of Commission 
rulemaking proceedings or changes in law.'' Thus,

[[Page 65927]]

for each fiscal year, the Commission proposes a fee schedule in the 
annual Notice of Proposed Rulemaking that reflects changes in the 
amount appropriated for the performance of the Commission's regulatory 
activities, changes in the industries represented by the regulatory fee 
payors, changes in FTE \10\ levels, and any other issues of relevance 
to the proposed fee schedule.\11\ After reviewing the comments, the 
Commission issues a Report and Order adopting the fee schedule for the 
fiscal year and sets out the procedures for payment of fees.
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    \5\ 47 U.S.C. 159(g) (showing original fee schedule prior to 
Commission amendment).
    \6\ 47 U.S.C. 159.
    \7\ 47 U.S.C. 159(b)(1)(B).
    \8\ 47 U.S.C. 159(b)(2).
    \9\ 47 U.S.C. 159(b)(1)(A).
    \10\ 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.
    \11\ Section 9(b)(2) discusses mandatory amendments to the fee 
schedule and Section 9(b)(3) discusses permissive amendments to the 
fee schedule. Both mandatory and permissive amendments are not 
subject to judicial review. 47 U.S.C. 159(b)(2) and (3).
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    6. The Commission calculates the fees by first determining the 
number of FTEs performing the regulatory activities specified in 
section 9(a), ``adjusted to take into account factors that are 
reasonably related to the benefits provided to the payor of the fee by 
the Commission's activities. . . .'' \12\ FTEs are categorized as 
``direct'' if they are performing regulatory activities in one of the 
``core'' bureaus, i.e., the Wireless Telecommunications Bureau, Media 
Bureau, Wireline Competition Bureau, and part of the International 
Bureau. All other FTEs are considered ``indirect.'' \13\ The total FTEs 
for each fee category is calculated by counting the number of direct 
FTEs in the core bureau that regulates that category, plus a 
proportional allocation of indirect FTEs. Next, the Commission 
allocates the total amount to be collected among the various regulatory 
fee categories. This allocation is based on the number of FTEs assigned 
to work in each regulatory fee category. Each regulatee within a fee 
category pays its proportionate share based on an objective measure, 
e.g., revenues, number of subscribers, or licenses.\14\
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    \12\ 47 U.S.C. 159(b)(1)(A). When section 9 was adopted, the 
total FTEs were to be calculated based on the number of FTEs in the 
Private Radio Bureau, Mass Media Bureau, and Common Carrier Bureau. 
(The names of these bureaus were subsequently changed.) Satellites, 
earth stations, and international bearer circuits were regulated 
through the Common Carrier Bureau before the International Bureau 
was created.
    \13\ The indirect FTEs are the employees from the International 
Bureau (in part), Enforcement Bureau, Consumer & Governmental 
Affairs Bureau, Public Safety & Homeland Security Bureau, Chairman 
and Commissioners' offices, Office of the Managing Director, Office 
of General Counsel, Office of the Inspector General, Office of 
Communications Business Opportunities, Office of Engineering and 
Technology, Office of Legislative Affairs, Office of Strategic 
Planning and Policy Analysis, Office of Workplace Diversity, Office 
of Media Relations, and Office of Administrative Law Judges, 
totaling 1,046 indirect FTEs.
    \14\ See Assessment and Collection of Regulatory Fees, Notice of 
Proposed Rulemaking, 27 FCC Rcd 8458, 8461-62, paragraphs 8-11 
(2012) (FY 2012 NPRM).
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    7. As part of its annual review, the Commission regularly seeks to 
improve its regulatory fee analysis.\15\ For example, in FY 2013, the 
Commission updated FTE allocations to more accurately reflect the 
number of FTEs working on regulation and oversight of the regulatees in 
the various fee categories, and now updates the FTE allocations 
annually; \16\ combined the UHF and VHF television stations into one 
regulatory fee category; \17\ and included IPTV in the cable television 
fee category.\18\ In FY 2014, we adopted a new fee category for toll 
free numbers, in the ITSP fee category; \19\ increased the de minimis 
threshold; \20\ and eliminated several categories from the regulatory 
fee schedule.\21\ In FY 2015, we added a subcategory for DBS providers 
in the cable television and IPTV regulatory fee category.\22\
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    \15\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, MD Docket No. 08-65, Report and Order and Further Notice 
of Proposed Rulemaking, 24 FCC Rcd 6388 (2008) (FY 2008 Further 
Notice).
    \16\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2013, MD Docket No. 08-65, Report and Order, 28 FCC Rcd 12351, 
12354-58, paragraphs 10-20 (2013) (FY 2013 Report and Order).
    \17\ FY 2013 Report and Order, 28 FCC Rcd at 12361-62, 
paragraphs 29-31.
    \18\ Id., 28 FCC Rcd at 12362-63, paragraphs 32-33.
    \19\ 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).
    \20\ FY 2014 Report and Order, 29 FCC Rcd at 10774-76, 
paragraphs 18-21.
    \21\ Id., 29 FCC Rcd at 10776-77, paragraphs 22-24.
    \22\ 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, paragraphs 28-41 (2015) (FY 2015 
NPRM). We also eliminated two additional fee categories. See FY 2015 
NPRM, 30 FCC Rcd at 5361-62, paragraphs 19-22.
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    8. In our FY 2016 NPRM, we proposed to collect $384,012,497.00 in 
regulatory fees and included a detailed, proposed fee schedule. We 
received 17 comments and 10 reply comments.\23\
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    \23\ Commenters to the FY 2016 NPRM are listed in Table 2.
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IV. Discussion

    9. In this FY 2016 Report and Order, we adopt a regulatory fee 
schedule for FY 2016, pursuant to section 9 of the Communications Act 
and our FY 2016 appropriation statute in order to collect 
$384,012,497.00 in regulatory fees.\24\ Of this amount, we project 
approximately $21.3 million (5.6 percent of the total FTE allocation) 
in fees from the International Bureau regulatees; \25\ $83.1 million 
(21.6 percent of the total FTE allocation) in fees from the Wireless 
Telecommunications Bureau regulatees; \26\ $146.5 million (38.0 percent 
of the total FTE allocation) from Wireline Competition Bureau 
regulatees; \27\ and $134.0 million (34.8 percent of the total FTE 
allocation) from the Media Bureau regulatees.\28\ These regulatory fees 
are due on September 27, 2016. The schedule of regulatory fees for FY 
2016 adopted here is attached as Table 4.
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    \24\ Section 9 regulatory fees are mandated by Congress and 
collected to recover the regulatory costs associated with the 
Commission's enforcement, policy and rulemaking, user information, 
and international activities. 47 U.S.C. 159(a). See Consolidated 
Appropriations Act, 2016, Public Law 114-113, Dec. 18, 2015, 
requiring the Commission to collect, for FY 2016, $339,844,000 for 
operational expenses and an additional one time amount of 
$44,168,497 to offset facilities reduction costs.
    \25\ Includes satellites, earth stations, and international 
bearer circuits (submarine cable systems and satellite and 
terrestrial bearer circuits).
    \26\ Includes Commercial Mobile Radio Service (CMRS), CMRS 
messaging, Broadband Radio Service/Local Multipoint Distribution 
Service (BRS/LMDS), and multi-year wireless licensees.
    \27\ Includes Interstate Telecommunications Service Providers 
(ITSP) and toll free numbers.
    \28\ Includes AM radio, FM radio, television (including low 
power and Class A, TV/FM translators and boosters, cable and IPTV, 
DBS, and Cable Television Relay Service (CARS) licenses.
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1. Facilities Reduction
    10. The 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 costs, i.e., to reduce the FCC's office 
space footprint and/or move the FCC office location.\29\ Due to the 
facilities reduction costs, regulatees' aggregate fees by category 
increased on average by approximately 11-13 percent for 2016. Some 
commenters disagree with this approach.\30\ We are, however, required 
by Congress to collect this amount for FY 2016.\31\
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    \29\ Consolidated Appropriations Act, 2016, Public Law 114-113, 
Dec. 18, 2015. See FCC's Lease Prospectus, available at http://www.gsa.gov/portal/category/100435.
    \30\ See, e.g., PMCM TV Comments at 2 (``Congress has never 
given the Commission a carte blanche to recover all of its costs 
through the regulatory fee mechanism.''); AT&T Comments at 3 (``This 
sum is especially unsuitable for inclusion in the regulatory fee 
request.'').
    \31\ Consolidated Appropriations Act, 2016, Public Law 114-113, 
Dec. 18, 2015.

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[[Page 65928]]

2. Toll Free Numbers
    11. In the FY 2014 Report and Order,\32\ we adopted a regulatory 
fee category for each toll free number managed by a RespOrg.\33\ In the 
FY 2015 Report and Order, we adopted a regulatory fee of 12 cents per 
toll free number.\34\ We proposed a regulatory fee of 13 cents per toll 
free number in the FY 2016 NPRM.\35\ AT&T objects to the increase from 
12 cents to 13 cents per year, and contends that we have not 
demonstrated increased regulatory oversight of RespOrgs to justify this 
increase.\36\ We identified in the FY 2016 NPRM that regulatory fees 
increased for all regulatee categories due to the one time increase for 
facilities reduction costs,\37\ which includes a one cent fee increase 
for toll free numbers. Pursuant to our obligations under section 9 of 
the Act and related Commission orders, we therefore adopt the fee 
proposed in the FY 2016 NPRM.\38\
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    \32\ FY 2014 Report and Order, 29 FCC Rcd at 10777-79, 
paragraphs 25-28. We adopted this category for working, assigned, 
and reserved toll free numbers and for toll free numbers that are in 
the ``transit'' status, or any other status as defined in section 
52.103 of the Commission's rules. The regulatory fee is limited to 
toll free numbers that are accessible within the United States.
    \33\ A Responsible Organization or RespOrg is a company that 
manages toll free telephone numbers for subscribers. RespOrgs use 
the SMS/800 database to verify the availability of specific numbers 
and to reserve the numbers for subscribers. See 47 CFR 52.101(b). 
Commission FTEs in the Wireline Competition Bureau and the 
Enforcement Bureau work on toll free numbering issues and other 
related activities. As a result, the Commission adopted a regulatory 
fee for each toll free number controlled or managed by a RespOrg 
because many toll free numbers are controlled or managed by RespOrgs 
that are not carriers, and therefore, had not been paying regulatory 
fees. In the FY 2014 Report and Order, we stated that: ``Based on 
evaluation, the FTEs involved in toll free issues are primarily from 
the Wireline Competition Bureau. . . . Accordingly, a regulatory fee 
assessed on toll free numbers reduces the ITSP regulatory fee 
total.'' FY 2014 Report and Order, 29 FCC Rcd at 10778, paragraph 27 
(footnote omitted).
    \34\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2015, Report and Order and Further Notice of Proposed 
Rulemaking, 30 FCC Rcd 10268, 10271-72, para. 9 (2015) (FY 2015 
Report and Order).
    \35\ FY 2016 NPRM, 81 FR 35680 at 35689, Table 3.
    \36\ AT&T Comments at 4. Somos questions the increase and 
observes that the Commission's lease after the move (or facilities 
reduction) should decrease which should result in lower regulatory 
fees in the future. Somos Comments at 2-3.
    \37\ FY 2016 NPRM, 81 FR 35680, at 35683, note 20.
    \38\ See supra note 23.
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3. International Bureau Issues
a. International Bearer Circuits
    12. 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.\39\ 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.\40\ In the FY 2016 
NPRM, and previously in FY 2015 Report and Order, we sought comment on 
how to ensure that all providers calculate and report IBCs in the same 
manner and how we could improve our requirements and regulatory 
treatment of terrestrial and satellite IBC.\41\
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    \39\ See infra paragraph 42.
    \40\ Id.
    \41\ FY 2016 NPRM, 81 FR 35680 at 35684, paragraphs 20-21.
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    13. We also sought comment on whether to eliminate the distinction 
between common carrier terrestrial circuits and non-common carrier 
terrestrial circuits for regulatory fee purposes.\42\ In doing so, we 
observed the telecommunications industry and Commission's rules have 
evolved. We also sought comment on the least burdensome methodology for 
calculating fees, whether international revenue rather than the number 
of circuits would be a useful data source, and asked how to ensure 
accurate reporting of both common carrier and non-common carrier 
terrestrial circuits.\43\
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    \42\ The Commission previously 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.'' 
Assessment and Collection of Regulatory Fees for Fiscal Year 2009, 
Report and Order, 24 FCC Rcd 10301, 10306-307, paragraphs 16-17 
(2009) (FY 2009 Report and Order). 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, 
paragraphs 13-17 (2009) (Submarine Cable Order).
    \43\ FY 2016 NPRM, 81 FR at 35680, at 35685, paragraph 21.
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    14. Only Level 3 commented, proposing that we revise our regulatory 
fee methodology for terrestrial international bearer circuits and adopt 
a flat-fee methodology similar to the method we use to assess fees for 
submarine cable systems.\44\ This proposal would include common carrier 
and non-common carrier circuits.\45\ Level 3 contends that this would 
be simpler to administer and would reduce underreporting.\46\ We agree 
with Level 3 that there is need to evaluate the changes in the 
international services marketplace and update our fee methodology to 
reflect the changes and make it simpler and more efficient to 
administer. We find, however, that the record in this proceeding is 
insufficient to make any comprehensive changes to the fee methodology 
at this time.\47\ To adequately evaluate the changes to the 
marketplace, a separate rulemaking proceeding to comprehensively review 
the methodology used for assessing fees for terrestrial and satellite 
international bearer circuits is needed, including the allocation of 
the international bearer circuit fee category between terrestrial and 
satellite circuits and submarine cable systems. Accordingly, we make no 
changes to fee rules governing the IBCs based on the record in this 
proceeding.
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    \44\ Level 3 Comments at 3 (citing Submarine Cable Order).
    \45\ Id. at 3, 5.
    \46\ Id. at 3-5. Level 3 explains that this proposal would 
reduce the burden on payors. Id. at 5.
    \47\ We received no comments in response to Level 3's proposed 
methodology.
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b. Earth Stations
    15. In the FY 2014 NPRM, we recognized that the International 
Bureau's oversight and regulation of the satellite industry involves 
FTEs working on legal, technical, and policy issues pertaining to both 
space station and earth station operations and is therefore 
interdependent to some degree.\48\ For that reason, in the FY 2014 
regulatory fee proceeding, we increased the regulatory fees paid by 
earth station licensees by approximately 7.5 percent based on analysis 
and review of the record.\49\ In the FY 2015 NPRM, we sought comment on 
whether to raise the earth station regulatory fees again.\50\ However, 
we declined to adopt an increase in fees in FY 2015 due to an ongoing 
proceeding concerning part 25 (Satellite Communications) of the 
Commission's rules which could affect the distribution of FTE work. In 
the FY 2016 NPRM, we sought comment on this issue--specifically on 
EchoStar's proposal to assess different levels of regulatory fees on 
different types of earth station licenses.\51\
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    \48\ FY 2014 NPRM, 29 FCC Rcd at 6428, paragraph 29.
    \49\ See FY 2014 Report and Order, 29 FCC Rcd at 10772-73, 
paragraph 12.
    \50\ FY 2015 NPRM, 30 FCC Rcd at 5360, paragraph 14.
    \51\ See EchoStar July 20, 2015 Ex Parte.
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    16. EchoStar now observes that since it submitted its proposal, we 
have adopted reforms that streamlined the

[[Page 65929]]

reporting process for satellite earth stations, which has addressed an 
unequal reporting burden and reduced administrative burdens.\52\ For 
this reason, EchoStar contends that all satellite earth stations should 
have the same regulatory fee, and no longer supports its earlier 
proposal.\53\
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    \52\ EchoStar Comments at 3 (discussing elimination of the 
annual reporting requirement for blanket FSS earth station licenses 
in the 20/30 GHz bands). See also Comprehensive Review of Licensing 
and Operation Rules for Satellite Services, Second Report and Order, 
30 FCC Rcd 14713 (2015).
    \53\ EchoStar Comments at 2-3.
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    17. No parties commented in favor of the proposal. At this time, we 
see no basis to assess different levels of regulatory fees on different 
types of earth station licensees. Accordingly, we adopt the earth 
station fee proposed in the FY 2016 NPRM.
c. Submarine Cable
    18. We did not specifically seek comment on issues pertaining to 
the submarine cable industry. The proposed rates in the FY 2016 NPRM 
contained a fee increase due to the one-time increase for facilities 
reduction expenses \54\ and a change in submarine cable units. A group 
of submarine cable operators contends that the proposed rate is too 
high and not justified.\55\ Specifically, the Submarine Cable Coalition 
questions the methodology for the proposed fees and argues that the 
proposed fees are disproportionate to the benefits received by 
submarine cable operators and the minimal regulatory oversight by the 
Commission, after the licensing process.\56\ Further the Submarine 
Cable Coalition states that the Commission should not overcharge low-
cost regulatees to subsidize for high-cost regulatees and recommends 
that the Commission reduce the regulatory fees commensurate with the 
amount of regulatory activity undertaken.\57\ As we have previously 
stated, the regulatory fees paid by the submarine cable operators cover 
not just the services provided those entities, but also the services 
provided to the common carriers that use the submarine cables to 
provide service.\58\ The regulatory fees are also not intended to 
recover only the costs of Title II regulation, but also the costs of 
our enforcement, policy and rulemaking, user information and 
international activities that benefit all entities involved in 
international telecommunications.\59\ We also note that since release 
of the FY 2016 NPRM, the units used to calculate fees has been updated 
with more recent data. Accordingly, the fees listed in Table 3 are less 
than the amount proposed in the FY 2016 NPRM. Nevertheless, we remind 
all regulatees, including submarine cable operators, the FY 2016 
regulatory fees include the facilities reduction costs.
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    \54\ FY 2016 NPRM, 81 FR 35680, at 35683, note 20.
    \55\ Submarine Cable Coalition Comments at 3-7.
    \56\ Id. at 2-4, 6-7.
    \57\ Id.
    \58\ See FY 2015 Report and Order, 30 FCC Rcd at 10273-74, 
paragraph 12.
    \59\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 1997, MD Docket No. 96-186, Report and Order, 12 FCC Rcd at 
17188, paragraphs 68-69 (1997) (FY 1997 Report and Order).
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4. FTE Reallocations
    19. ITTA has proposed in past regulatory fee proceedings that 
wireless providers should be combined into the ITSP fee category so 
that all voice providers pay regulatory fees on the same basis.\60\ 
ITTA continues to endorse this approach and contends that the wireline 
and wireless voice services are subject to many of the same regulatory 
policies, programs, and obligations and therefore combining these voice 
services into the ITSP category is an appropriate measure to comply 
with section 9 of the Act.\61\ ITTA explains that due to changes in the 
communications industry and the convergence of technologies, the 
Wireline Competition Bureau FTEs' work is no longer focused on 
ITSPs.\62\ According to ITTA, the work performed by Wireline 
Competition Bureau FTEs on universal service issues impacts various 
types of communications providers, not just ITSPs.\63\
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    \60\ See FY 2015 Report and Order, 30 FCC Rcd at 10281-82, 
paragraphs 31-34; FY 2014 NPRM, 29 FCC Rcd at 6430-31, paragraphs 
36-39; FY 2013 NPRM, 28 FCC Rcd at 7796, paragraph 12; FY 2008 
FNPRM, 24 FCC Rcd at 6404-05, paragraphs 40-41.
    \61\ ITTA Comments at 6.
    \62\ Id.
    \63\ Id. at 7. ITTA also lists other issues that it contends are 
within the Wireline Competition Bureau but affect entities that are 
not ITSPs, such as number portability, 911 emergency access, special 
access, rate integration, customer proprietary network information, 
pole attachments, and CALEA. ITTA Comments at 7.
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    20. Certain commenters agree with ITTA's proposals.\64\ For 
example, NTCA contends that updating the ITSP category to include 
wireless revenues would be a ``rational step.'' \65\ CenturyLink 
explains that this would be analogous to including VoIP providers in 
the ITSP category and DBS in the cable television/IPTV category.\66\ 
Frontier states that the work of various Wireline Competition Bureau 
divisions is ``inseparable from wireless carriers'' and the divisions 
work ``for the benefit of . . . all telecommunications service 
providers.'' \67\ These commenters also support allocating Wireless 
Telecommunications Bureau FTEs to the Wireline Competition Bureau for 
regulatory fee purposes.\68\ In addition, Frontier supports requiring 
broadband Internet service providers to pay ITSP regulatory fees.\69\
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    \64\ See, e.g. , NTCA Comments at 2-4; CenturyLink Comments at 
1-6; Frontier Comments at 1-9; ACA Comments at 11-14.
    \65\ NTCA Comments at 3.
    \66\ CenturyLink Comments at 4-5.
    \67\ Frontier Comments at 6.
    \68\ Frontier Comments at 7-8; NTCA Comments at 3; CenturyLink 
Comments at 6-8.
    \69\ Frontier Comments at 9.
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    21. ITTA and CenturyLink argue that if wireless and wireline voice 
services are not combined in the ITSP category or Wireline Competition 
Bureau FTEs are not allocated to the Wireless Telecommunications Bureau 
for regulatory fee purposes, we should reassign some Wireline 
Competition Bureau FTEs as indirect FTEs.\70\ ITTA contends that the 
high-cost and Lifeline universal service programs benefit regulatees in 
addition to ITSPs and that we should therefore ``adjust its fee 
structure to account for this industry crossover.'' \71\ Commenters 
contend that all Wireline Competition Bureau FTEs that work on ``cross-
jurisdictional issues'' such as numbering and universal service should 
be reassigned as indirect.\72\
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    \70\ ITTA Comments at 8-9; CenturyLink Comments at 7-8.
    \71\ ITTA Comments at 7-8.
    \72\ Frontier Comments at 8 & 10; ITTA Comments at 10; 
CenturyLink Comments at 7. CenturyLink also contends that FTEs 
working on 911 issues should be indirect. CenturyLink Comments at 7. 
As CTIA observes, these FTEs are primarily in the Public Safety and 
Homeland Security Bureau and are indirect. CTIA Reply Comments at 5.
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    22. CTIA disagrees with the ITTA proposal and contends that there 
is no basis to reassign Wireline Competition Bureau FTEs to the 
Wireless Telecommunications Bureau because Wireless Telecommunications 
Bureau FTEs already participate in wireline proceedings to the extent 
they raise wireless issues.\73\ Also, substantial differences exist 
between wireless and wireline services concerning regulatory oversight 
which militate against combining, based on revenues, the CMRS and ITSP 
fee categories.\74\ Wireless providers are not subject to the 
regulations and requirements imposed on ITSPs, and logically combining 
CMRS into the ITSP category (based on

[[Page 65930]]

revenues) merely because both offer voice services ignores the 
fundamental differences in the work done by FTEs in these two 
bureaus.\75\ CTIA further contends that there is insufficient 
information to support a clear case for the reclassification of FTEs 
that work on universal service or numbering issues from direct to 
indirect.\76\
---------------------------------------------------------------------------

    \73\ CTIA Comments at 2 & Reply Comments at 2. CTIA also 
observes that the ITTA proposal would result in CMRS providers 
paying regulatory fees based on Wireless Telecommunications Bureau 
FTEs and Wireline Competition Bureau FTEs. CTIA Reply Comments at 3.
    \74\ CTIA Comments at 2 & Reply Comments at 2-3.
    \75\ CTIA Comments at 2-3 (citing FY 2016 NPRM, 31 FCC Rcd at 
5765-66, paragraph 18.).
    \76\ Id. at 3-5.
---------------------------------------------------------------------------

    23. CTIA stresses that the number of FTEs working on any given 
issue could change significantly year-to-year depending on the 
individual proceedings the Commission undertakes in any given year, 
e.g., there has been significant work within the past year on adopting 
and implementing various components of the Connect America Fund (CAF), 
reforming the Lifeline Program, and implementing procedures to allow 
VoIP providers to obtain numbers directly from the numbering 
administrator.\77\ CTIA therefore recommends additional detailed 
analysis to demonstrate whether and how the number of FTEs working on 
particular issues may fluctuate and thus the impact of the potential 
reclassification of those FTEs as indirect.\78\
---------------------------------------------------------------------------

    \77\ CTIA Comments at 5 & Reply Comments at 3.
    \78\ CTIA Comments at 5 & Reply Comments at 3-5.
---------------------------------------------------------------------------

    24. The Commission has emphasized that reallocation of some of the 
International Bureau's FTEs as indirect was a ``singular case'' because 
the work of those International Bureau FTEs ``primarily benefits 
licensees regulated by other bureaus.'' \79\ We have further stated, 
``apart from the unique nature of the International Bureau FTEs, the 
work of all the FTEs in a core bureau contributes to the cost of 
regulating and overseeing the licensees of that bureau.'' \80\ We 
concluded that ``[g]iven the significant implications of reassignment 
of FTEs in our fee calculation, we make changes to FTE classifications 
only after performing considerable analysis and finding the clearest 
case for reassignment.'' \81\
---------------------------------------------------------------------------

    \79\ FY 2013 Report and Order, 28 FCC Rcd at 12355, paragraph 
14.
    \80\ FY 2015 Report and Order, 30 FCC Rcd at 10274, paragraph 
15.
    \81\ Id. 30 FCC Rcd at 10274-75, paragraph 15.
---------------------------------------------------------------------------

    25. After reviewing the record, we decline to adopt the ITTA 
proposal. In particular, we conclude that ITTA's proposal does not 
address this issue in a manner that is reasonable and in compliance 
with section 9 of the Act. ITTA does not contend that industries other 
than those in the ITSP regulatory fee category, i.e., CMRS, are subject 
to the oversight and regulation of the Wireline Competition Bureau or 
that CMRS creates significant costs for the Wireline Competition Bureau 
due to such oversight and regulation. We recognize that the CMRS 
industry participates in the universal service Lifeline program, and 
that the Wireline Competition Bureau FTEs are responsible for the 
oversight and regulation of the universal service mechanisms. We are 
not convinced at this time that this relationship is sufficient to 
support a reassignment of the FTEs from the Wireline Competition Bureau 
to the Wireless Telecommunications Bureau, particularly when the FTEs 
closely involved in wireless Lifeline issues are indirect FTEs, in the 
Enforcement Bureau and elsewhere, addressing compliance with the 
Commission's rules.
    26. Further, the number of FTEs working on any given issue changes 
significantly depending on the individual proceedings the Commission 
undertakes in any given year. We now update FTE allocations on an 
annual basis to more accurately reflect the number of FTEs working on 
regulation and oversight of the regulatees in the various fee 
categories.\82\ To attempt to reallocate Wireline Competition Bureau 
FTEs each year based on particular work assignments is a subjective 
process that would likely result in unpredictable fluctuations in 
regulatory fees from year to year. In addition, to the extent wireline 
proceedings raise wireless issues, Wireless Telecommunications Bureau 
FTEs already are involved in work related to the wireless issues in 
such proceedings.\83\
---------------------------------------------------------------------------

    \82\ See FY 2015 Report and Order, 30 FCC Rcd at 10274, 
paragraph 15.
    \83\ CTIA Comments at 2.
---------------------------------------------------------------------------

    27. ITTA's proposals also do not take into account that many 
indirect FTEs throughout the Commission outside of the Wireline 
Competition Bureau work on universal service and other wireline issues. 
For example, indirect FTEs in the Enforcement Bureau, Office of 
Managing Director, as well as other bureaus and offices work on various 
universal service issues. Therefore, it is incorrect to contend that 
primarily FTEs in the Wireline Competition Bureau are devoted to all of 
the universal service issues. Further, ITTA's proposal to reassign some 
or all of the Wireline Competition Bureau FTEs working on universal 
service as indirect FTEs ignores licensees not involved in high-cost 
and Lifeline universal service issues, such as radio and television 
broadcasters, that would be responsible for contributing to the cost of 
those Wireline Competition Bureau FTEs. Although we recognize Wireline 
Competition Bureau proceedings can affect other industries, such as 
CMRS, we are not convinced that this demonstrates the ``clearest case'' 
for reassignment of FTEs. For these reasons, we decline to adopt the 
ITTA proposal at this time.
5. DBS Rate Issues
    28. In 2015, we 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.\84\ At that time, we stated 
that we would update the rate as necessary to ensure an appropriate 
level of regulatory parity and considering the resources dedicated to 
this subcategory.\85\ Such examination is 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.'' 
\86\ When we adopted this regulatory fee subcategory for DBS, we 
observed that numerous regulatory developments had increased the Media 
Bureau FTE activity involving regulation and oversight of multichannel 
video programming distributors (MVPDs), including DBS providers.\87\ 
For example, DBS providers (and cable television operators) are 
permitted to file program access complaints \88\ and retransmission 
consent complaints.\89\ In addition, DBS providers are subject to MVPD 
requirements such as those pertaining to program carriage \90\ and the 
requirement to negotiate retransmission consent in good faith.\91\ We 
also observed that the Commission had recently adopted requirements 
that apply to all MVPDs and thus equally apply to DBS providers as part 
of its implementation of the Commercial Advertisement Loudness 
Mitigation Act (CALM Act),\92\ the Twenty-First Century Communications

[[Page 65931]]

and Video Accessibility Act of 2010 (CVAA),\93\ as well as the 
Satellite Television Extension and Localism Act (STELA) Reauthorization 
Act of 2014 (STELAR).\94\
---------------------------------------------------------------------------

    \84\ FY 2015 Report and Order and FNPRM, 30 FCC Rcd at 10276-77, 
paragraphs 19-20.
    \85\ Id., 30 FCC Rcd at 10277, paragraph 20.
    \86\ GAO ``Federal Communications Commission Regulatory Fee 
Process Needs to be Updated,'' GAO-12-686 (August 2012) at 12, 
available at http://www.gao.gov/products/GAO-12-686.
    \87\ See FY 2015 Report and Order, 30 FCC Rcd at 5367-68, 
paragraph 31.
    \88\ 47 U.S.C. 548; 47 CFR 76.1000-1004.
    \89\ 47 U.S.C. 325(b)(1), (3)(C)(ii); 47 CFR 76.65(b).
    \90\ 47 U.S.C. 536; 47 CFR 76.1300-1302.
    \91\ 47 U.S.C. 325(b)(3)(C)(iii); 47 CFR 76.65(a)-(b).
    \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 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; Video Description: 
Implementation of the Twenty-First Century Communications and Video 
Accessibility Act of 2010, Notice of Proposed Rulemaking, 31 FCC Rcd 
2463 (2016).
    \94\ The STELA Reauthorization Act of 2014 (STELAR), Public Law 
113-200, 128 Stat. 2059 (2014). STELAR was enacted on Dec. 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, 30 FCC Rcd 15293 (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).
---------------------------------------------------------------------------

    29. In the FY 2016 NPRM, we observed that DBS, along with other 
MVPDs, continues to receive increased oversight and regulation as a 
result of the work of Media Bureau FTEs. For example, we recently 
adopted a Report and Order requiring cable television operators, DBS 
providers, and certain other licensees to post their public file 
documents to the FCC-hosted online database.\95\ In addition, we 
recently released a Notice of Proposed Rulemaking pertaining to set-top 
boxes of cable television and DBS operators.\96\ These recent 
proceedings involving DBS further demonstrate that DBS providers impose 
regulatory costs and receive benefit from the activities of the Media 
Bureau FTEs that affect all MVPDs. In the FY 2016 NPRM, we sought 
comment on a higher regulatory fee rate of 27 cents per subscriber per 
year for FY 2016--a 24 cent per subscriber baseline with a proportional 
adjustment of three cents per subscriber associated with facilities 
reduction costs.\97\ This fee would be slightly higher than two cents 
per month per subscriber and would remain significantly below the cable 
television/IPTV rate of $1.00 per year.\98\
---------------------------------------------------------------------------

    \95\ Expansion of Online Public File Obligations to Cable and 
Satellite TV Operators and Broadcast and Satellite Radio Licensees, 
Report and Order, 31 FCC Rcd 526 (2016).
    \96\ Expanding Consumers' Video Navigation Choices, Commercial 
Availability of Navigation Devices, Notice of Proposed Rulemaking 
and Memorandum Opinion and Order, 31 FCC Rcd 1544 (2016). See also 
Promoting the Availability of Diverse and Independent Sources of 
Video Programming, Notice of Inquiry, 31 FCC Rcd 1610 (2016).
    \97\ For FY 2015, we adopted a rate for DBS of 12 cents per 
subscriber per year, or one cent per month per subscriber. By way of 
comparison, the cable television and IPTV rate adopted for FY 2015 
was 96 cents per subscriber per year.
    \98\ 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 at 232; National Cable Television Ass'n v. FCC, 554 
F.2d 1094, 1105 (D.C. Cir. 1976); 36 Comp. Gen. 75 (1956).
---------------------------------------------------------------------------

    30. Commenters representing the cable television industry agree 
that the Media Bureau FTEs increasingly devote time to issues involving 
the entire MVPD industry, and that DBS, cable television, and IPTV all 
receive oversight and regulation as a result of the work of the Media 
Bureau FTEs on MVPD issues.\99\ These commenters argue that regulatory 
fee parity for all MVPDs paying into the cable television/IPTV fee 
category is therefore justified because there is a ``relatively small 
difference from a regulatory perspective'' between DBS and cable 
television/IPTV.\100\ ACA observes \101\ that AT&T, the nation's 
largest MVPD,\102\ operates its U-verse IPTV service and its DirecTV 
DBS service,\103\ yet will be assessed lower regulatory fees for its 
approximately 20 million DirecTV subscribers than it will pay for its 
approximately six million IPTV subscribers, although these services use 
comparable Media Bureau FTE resources.\104\
---------------------------------------------------------------------------

    \99\ ACA Comments at 3-11; NCTA Reply Comments at 3-7.
    \100\ ACA Comments at 3-7; NCTA Reply Comments at 7.
    \101\ ACA Comments at 9.
    \102\ When the Commission sought comment on including IPTV into 
the cable television fee category, AT&T, an IPTV service provider, 
advocated a ``broader MVPD category . . . because it could encompass 
both cable service and non-cable service video offerings, like IPTV, 
and allow for evolution in the MVPD market.'' AT&T Comments (MD 
Docket No. 13-140) at 5.
    \103\ Applications of AT&T Inc. and DirecTV; For Consent to 
Assign or Transfer Control of Licenses and Authorizations, 
Memorandum Opinion and Order, 30 FCC Rcd 9131 (2016).
    \104\ See, e.g., Implementation of Section 103 of the STELA 
Reauthorization Act of 2014, MB Docket Nos. 15-216 and 10-71, Ex 
Parte Letter to Marlene Dortch, Secretary, FCC, from Sean A. Lev, 
Counsel to AT&T Services, Inc. (filed March 16, 2016). Moreover, 
recent press reports indicate that AT&T's U-verse subscribers are 
declining, while their DirecTV subscribers are increasing, which 
will lower its Media Bureau regulatory fee burden. See http://variety.com/2016/biz/news/directv-att-tv-shrinks-q2-2016-1201819654/
; http://www.hollywoodreporter.com/news/at-t-loses-pay-tv-913277.
---------------------------------------------------------------------------

    31. ACA agrees that the previously adopted phase-in period was the 
correct approach; however, DBS providers have already had the benefit 
of an adequate phase-in and should now be brought quickly up to parity 
with cable television and IPTV.\105\ Thus, ACA and NCTA argue, the 
Commission should either assess all payors in the cable television/IPTV 
fee category the same level of fees, or, at a minimum, assess DBS fee 
payors a higher fee and commit to raising that by 2017 to the fees 
assessed on cable television operators and IPTV providers.\106\
---------------------------------------------------------------------------

    \105\ ACA Comments at 9-11 & Reply Comments at 15.
    \106\ ACA Comments at 9-11; NCTA Reply Comments at 9.
---------------------------------------------------------------------------

    32. The two DBS providers, AT&T and DISH, however, disagree with 
our proposal and argue that there is no justification for increasing 
the fee to 27 cents per subscriber per year for FY 2016.\107\ AT&T 
contends that we have failed to demonstrate any specific reason for 
this fee increase for DBS providers.\108\ DISH argues that the increase 
of an additional 15 cents per subscriber per year will subject DBS 
providers to ``rate shock'' and that we have abandoned our ``phased 
approach.'' \109\ We disagree that this rate increase, still 
substantially below the cable television/IPTV rate, will cause ``rate 
shock.'' As NTCA observes, it is unpersuasive that rate shock will 
occur under ``a 27 cents annual fee for services that cost on average 
about $100 per month.'' \110\
---------------------------------------------------------------------------

    \107\ AT&T Comments at 1-3; DISH Comments at 4-6 & Reply 
Comments at 2-3.
    \108\ AT&T Comments at 1-3.
    \109\ DISH Comments at 7-8.
    \110\ NTCA Reply Comments at 2-3 (footnote omitted); ACA Reply 
Comments at 2 (``claims . . . that the Commission's proposed 
increase will cause `rate shock' . . . should not be given any 
credence.''). The two DBS providers, AT&T and DISH, are the largest 
and fourth largest MVPDs in the nation, and multi-billion dollar 
corporations. Id. at 14.
---------------------------------------------------------------------------

    33. The proposed fee of 27 cents per subscriber per year continues 
to follow our decision to assess fees for DBS in the cable television/
IPTV category. In particular, the increase we adopt today is not based 
on an incremental increase in Media Bureau FTEs working on MVPD 
issues,\111\ but is supported by data and analysis and wholly 
consistent

[[Page 65932]]

with the approach used in FY 2015.\112\ We reiterate that the DBS and 
cable television/IPTV oversight and regulatory work of Media Bureau 
FTEs is similar.\113\ As such, we remain committed as a goal to 
regulatory fee parity for all MVPDs paying into the cable television/
IPTV fee category.\114\ We find it appropriate to adopt the rate 
proposed in the FY 2016 NPRM.\115\ For reasons similar to those 
discussed in the FY 2015 NPRM,\116\ and based on our analysis of the 
resources dedicated to this subcategory, including the resources 
dedicated to the pending portfolio of MVPD proceedings, we revise the 
DBS fee rate. Specifically, in this FY 2016 regulatory fee proceeding, 
we adopt a DBS fee rate of 27 cents per subscriber per year for FY 
2016, as set forth in the fee schedule. This fee includes a 24 cent per 
subscriber baseline with a proportional adjustment of three cents per 
subscriber associated with facilities reduction costs.
---------------------------------------------------------------------------

    \111\ This appears to be the DBS position. See AT&T Comments at 
2; DISH Comments at 6 & Reply Comments at 3.
    \112\ See FY 2015 Report and Order, 30 FCC Rcd at 10277, 
paragraph 20 (finding that the initial rate of 12 cents per 
subscriber per year is a ``sensible fee supported by data and 
analysis.'')
    \113\ FY 2016 NPRM, 81 FRt 35680, at 35683, paragraphs 13-14.; 
FY 2015 NPRM, 30 FCC Rcd at 5369, paragraph 33.
    \114\ See FY 2015 Report and Order, 30 FCC Rcd at 10277, 
paragraph 20 (``In the FY 2016 regulatory fee proceeding, we will 
update this rate for future years, based on relevant information, as 
necessary for ensuring an appropriate level of regulatory parity and 
considering the resources dedicated to this new regulatory fee 
subcategory.'').
    \115\ FY 2016 NPRM, 81 FR 35680, at 35683 at paragraph 14.
    \116\ FY 2015 NPRM, 30 FCC Rcd at 5367-5373, paragraphs 31-41.
---------------------------------------------------------------------------

6. Broadcasters' Fees
a. AM and FM Broadcasters Serving the Smallest Two Market Levels 
(<=25,000 and 25,001-75,000)
    34. In the FY 2016 NPRM, we 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.\117\ Similarly, we proposed to standardize 
the incremental increase in fees as the population served 
increases,\118\ and to more consistently assess fees based on the type 
and class of service.\119\ We also proposed to adjust the television 
broadcasters table so that Top 10 market stations should pay about 
twice what stations in markets 26-50 pay.\120\
---------------------------------------------------------------------------

    \117\ FY 2016 NPRM, 81 FR 35680, at 35684, paragraph 17. We also 
sought comment on this issue in the Further Notice of Proposed 
Rulemaking attached to the FY 2015 Report and Order. See FY 2015 
Report and Order, 30 FCC Rcd at 10280, paragraph 28.
    \118\ 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.
    \119\ 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.
    \120\ FY 2016 NPRM, 81 FR 35680, at 35685, paragraph 19. We also 
sought comment on this issue in the Further Notice of Proposed 
Rulemaking attached to the FY 2015 Report and Order. See FY 2015 
Report and Order, 30 FCC Rcd at 10280-81, paragraph 29.
---------------------------------------------------------------------------

    35. Several commenters contend that our proposal is too burdensome 
for small independent radio and television stations.\121\ One commenter 
contends that the addition of ``greater than 6 million'' is a welcome 
step for radio broadcasters, but that it does not go far enough because 
AM stations bill far less advertising revenue than FM stations.\122\ 
Another commenter, representing a group of recording artists, observes 
that ``the [radio] stations that support us the most are the smaller 
independents not affiliated with the major networks. These smaller 
stations struggle on a day-to-day basis.'' \123\ Several commenters 
suggest that we use a combination of revenue and a set fee instead of a 
market-based fee, to assess regulatory fees for radio and television 
broadcasters.\124\
---------------------------------------------------------------------------

    \121\ Marquee Broadcasting Comments at 1 (``[The proposal] 
places a disproportional burden on small, independent broadcast 
[television] stations, the very group the FCC should hope to 
encourage in an industry of giants.''); Koor Communications Reply 
Comments at 1 (``The present system of calculating regulatory fees 
is very lopsided and unfair especially to small market AM 
Broadcasters.''); P & M Radio Reply Comments at 1 (``I, along with 
many owner-operators of independent AM stations, have been 
struggling in the past decade just to stay on the air.''); Blackbelt 
Broadcasting Comments at 1 (``the proposed fee increase (and 
structure) [should be] revaluated [to] consider the burden this will 
put on many small rural [FM] broadcasters.''); Fitzgerald Comments 
at 2 (``Stations with populations under 25,000 served are for the 
most part, very small `Mom and Pop' style stations. These [proposed] 
massive increases will greatly harm these . . . [radio] stations 
which generate very small amounts of revenue.''); Faxon Reply 
Comments at 1 (``The proposed regulatory fees for 2016 do not make 
sense and place an extreme burden on small market radio 
stations.'').
    \122\ Bittner Comments at 1.
    \123\ Brigham Reply Comments at 1.
    \124\ Bittner Broadcasting Comments at 1-3; Marquee Broadcasting 
Comments at 1; Brigham Reply Comments at 1; Koor Communications 
Reply Comments at 1; P & M Radio Reply Comments at 1; Faxon Reply 
Comments at 1.
---------------------------------------------------------------------------

    36. We do not require broadcasters to report their revenues. Thus, 
the revenue-based proposal is not practicable at this time. We agree, 
however, that the proposed rates should be revised downward for the 
smaller AM and FM radio broadcast stations. Extending some relief to 
these small radio broadcasters may facilitate their continued ability 
to stay in business and serve their small and rural communities. 
Therefore, after reviewing the record, including the comments filed by 
the industry describing the economic hardship faced by many small rural 
independent radio stations, we are adopting a revised version of the 
proposed table in the FY 2016 NPRM and reducing the regulatory fees in 
the two lowest population tiers for AM and FM broadcasters from the 
amounts proposed.\125\
---------------------------------------------------------------------------

    \125\ PMCM TV suggests that we assess a lower fee for VHF TV 
stations than UHF stations. PMCM TV Comments at 3-4. We decline to 
adopt this proposal here, but intend to seek comment on it in the FY 
2017 Notice of Proposed Rulemaking.

                                                Table 1--FY 2016 AM and FM 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................................................            $990            $715            $620            $685          $1,075          $1,250
25,001-75,000...........................................           1,475           1,075             925           1,025           1,625           1,850
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

[[Page 65933]]

 
>6,000,000..............................................          13,750           9,950           8,625           9,500          15,000          17,175
--------------------------------------------------------------------------------------------------------------------------------------------------------

b. Puerto Rico Broadcasters Association Proposal
    37. The PRBA and Arso comment on the issues set forth in the PRBA 
December 10, 2014 letter (PRBA Letter),\126\ seeking regulatory fee 
relief for the radio broadcasters in the Commonwealth of Puerto Rico 
due to economic hardship, unique geography, and declining 
population.\127\ In the PRBA Letter, PRBA requested that the Commission 
use more recent figures to determine the radio station population count 
for radio stations in Puerto Rico.\128\ PRBA stated that due to the 
economic hardship in the territory, the population has decreased in the 
past nine years by almost six percent because of migration to the 
mainland United States and a declining birthrate.\129\ Finally, PRBA 
contended that the radio listening market is limited because it is 
restricted to listeners within the boundaries of the island.\130\
---------------------------------------------------------------------------

    \126\ PRBA Comments at 1-5; Arso Comments at 1-7.
    \127\ We previously sought comment on: (i) Moving the Puerto 
Rico market stations to a different rate (or a lower population 
stratum) because of the downward trend in the population and other 
factors; (ii) creating a separate fee category for the Puerto Rico 
market at a lower rate; or (iii) adopting a special provision in our 
rules for economically depressed geographic areas to seek a ``fast 
track'' waiver of regulatory fees. See FY 2015 NPRM, 30 FCC Rcd at 
5360-61, paragraphs 15-18. Arso observes that the ``fast track'' 
proposal would require a rulemaking procedure, which would be time-
consuming, and the Puerto Rican stations need immediate relief. Arso 
Comments at 4.
    \128\ PRBA Letter at 2-4. PRBA asked the Commission to examine 
population data every five years instead of every 10 years to 
increase the accuracy of the population counts in Puerto Rico. The 
Commission explained that radio station population counts are 
updated every ten years to reflect nationwide changes in the 
population using the ``block level census data'' from the U.S. 
Census, therefore we could not adopt PRBA's suggestion because the 
``block level census data'' is only available from the U.S. Census 
Bureau every 10 years. Further, even if such figures were available 
every five years, they would be unlikely to provide a basis for fee 
relief for radio stations in Puerto Rico because fees on AM and FM 
radio stations are not assessed at granular levels. See FY 2015 
NPRM, 30 FCC Rcd at 5360-61, paragraphs 15-18.
    \129\ PRBA Letter at 3.
    \130\ Id. at 5.
---------------------------------------------------------------------------

    38. PRBA and Arso contend that the economic situation has worsened 
since the PRBA Letter was filed, and that it is crucial that the 
Commission provide relief from regulatory fee obligations for Puerto 
Rican broadcasters.\131\ PRBA contends that requiring each radio and 
television station to submit a waiver request would negate any benefit 
of the Commission's efforts.\132\ Arso observes that it would be 
burdensome for companies to pay the regulatory fee when requesting a 
fee reduction.\133\ Instead, PRBA contends, the Commission should 
either move the Puerto Rican stations to a lower population stratum 
\134\ or create a separate fee category for the Puerto Rican 
market.\135\ PRBA urges the Commission to adopt the second proposal--a 
separate fee category for the entire Puerto Rican market--at a rate 30 
percent lower than the normal rate for each station.\136\
---------------------------------------------------------------------------

    \131\ PRBA Comments at 2; Arso Comments at 3.
    \132\ PRBA Comments at 3. Arso Comments at
    \133\ Arso Comments at 3-4.
    \134\ PRBA suggests moving two levels down to account for 
population loss and economic difficulties. PRBA Comments at 4.
    \135\ PRBA Comments at 3-4. Arso Comments at
    \136\ PRBA Comments at 4. Arso Comments at
---------------------------------------------------------------------------

    39. We decline to adopt the PRBA proposal at this time. Fee relief 
is ordinarily processed through a waiver request or payment 
deferral.\137\ While we recognize that the economic situation in Puerto 
Rico is difficult in general, without the specific information needed 
to justify a waiver request or payment deferral we would not know the 
particular circumstances of the regulatee or licensee to support a 
request for relief. Information concerning how to request fee relief 
can be found on our Web site, e.g., https://www.fcc.gov/document/fy-2015-waiver-regulatory-fees-fact-sheet. As discussed above, we are 
adopting a revised version of the proposed table and thus reducing the 
regulatory fees in the two lowest population tiers from the amount 
proposed for radio broadcasters, which should provide some amount of 
fee relief to eleven of the PRBA stations.\138\
---------------------------------------------------------------------------

    \137\ Fees may be waived, reduced or deferred in specific 
instances, on a case-by-case basis, where good cause is shown and 
where waiver, reduction, or deferral of the fee would promote the 
public interest. 47 U.S.C. 159(d); 47 CFR 1.1166. Fee relief may be 
granted based on a ``sufficient showing of financial hardship.'' See 
Implementation of Section 9 of the Communications Act, Assessment 
and Collection of Regulatory Fees for the 1994 Fiscal Year, 
Memorandum Opinion and Order, 10 FCC Rcd 12759, 12761-62, paragraph 
13 (1995). In such matters, however, ``[m]ere allegations or 
documentation of financial loss, standing alone,'' do not suffice 
and ``it [is] incumbent upon each regulatee to fully document its 
financial position and show that it lacks sufficient funds to pay 
the regulatory fee and to maintain its service to the public.'' Id.
    \138\ The remaining radio stations in Puerto Rico are situated 
in the top three fee category tiers. In addition to providing relief 
to eleven Puerto Rican radio stations, a reduction in the fees of 
the two lowest fee categories also provides relief to many small 
non-Puerto Rican stations, including several dozen radio stations in 
the U.S. territories in the Pacific and in the Caribbean (e.g., 
Guam, American Samoa, Saipan, and U.S. Virgin Islands).
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c. Broadcast Television Incentive Auction--Reminder To Pay FY 2016 and 
FY 2017 Regulatory Fees
    40. The Commission's Broadcast Television Incentive Auction 
(Incentive Auction) is underway, and all broadcast television licensees 
are reminded that they continue to be responsible for payment of FY 
2016 regulatory fees if they held a license or construction permit as 
of October 1, 2015, as well as for payment of FY 2017 regulatory fees 
if they continue to hold their license or construction permit as of 
October 1, 2016. Licensees must pay the required regulatory fees to 
avoid any delay of payments resulting from the Incentive Auction.\139\ 
Finally, regulatees are reminded that non-payment of regulatory fees, 
if required, will place them in red light status and prevent them from 
conducting business with the Commission.
---------------------------------------------------------------------------

    \139\ Application Procedures for Broadcast Incentive Auction 
Scheduled to Begin on March 29, 2016; Technical Formulas for 
Competitive Bidding, Public Notice, 30 FCC Rcd 11034, 11041-42, 
paragraphs 12-14 (WTB 2015); see also Expanding the Economic and 
Innovation Opportunities of Spectrum Though Incentive Auctions, 
Report and Order, 29 FCC Rcd at 6567, 6785, n.1512 (2014).
---------------------------------------------------------------------------

V. Procedural Matters

A. Payment of Regulatory Fees

1. Payments by Check Will Not Be Accepted for Payment of Annual 
Regulatory Fees
    41. Pursuant to an Office of Management and Budget (OMB) 
directive,\140\ the Commission is moving towards a paperless 
environment, extending to disbursement and collection of select federal 
government

[[Page 65934]]

payments and receipts.\141\ The initiative to reduce paper and curtail 
check payments for regulatory fees is expected to produce cost savings, 
reduce errors, and improve efficiencies across government. In FY 2015, 
we 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.\142\ The 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 in order to associate the wire payment with the 
correct regulatory fee information.\143\
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    \140\ Office of Management and Budget (OMB) Memorandum M-10-06, 
Open Government Directive, Dec. 8, 2009; see also http://www.whitehouse.gov/the-press-office/2011/06/13/executive-order-13576-delivering-efficient-effective-and-accountable-gov.
    \141\ See U.S. Department of the Treasury, Open Government Plan 
2.1, Sept. 2012.
    \142\ FY 2015 Report and Order, 30 FCC Rcd at 10282-83, 
paragraph 35.
    \143\ As we explained in 2015, payors should note 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
    42. 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 
limited to $24,999.99.\144\ 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.
---------------------------------------------------------------------------

    \144\ 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. Payment Methods
    43. During the fee season for collecting FY 2016 regulatory fees, 
regulatees can pay their fees by credit card through Pay.gov,\145\ ACH, 
debit card,\146\ or by wire transfer. Additional payment instructions 
are posted at http://transition.fcc.gov/fees/regfees.html. The 
receiving bank for all wire payments is the U.S. Treasury, New York, 
New York. When making a wire transfer, regulatees must fax a copy of 
their Fee Filer generated Form 159-E to the Federal Communications 
Commission at (202) 418-2843 at least one hour before initiating the 
wire transfer (but on the same business day) so as not to delay 
crediting their account. Regulatees should discuss arrangements 
(including bank closing schedules) with their bankers several days 
before they plan to make the wire transfer to allow sufficient time for 
the transfer to be initiated and completed before the deadline. 
Complete instructions for making wire payments are posted at http://ransition.fcc.gov/fees/wiretran.html.
---------------------------------------------------------------------------

    \145\ In accordance with U.S. Treasury Financial Manual 
Announcement No. A-2014-04 (July 2014), the amount that may be 
charged on a credit card for transactions with federal agencies has 
been reduced to $24,999.99.
    \146\ In accordance with U.S. Treasury Financial Manual 
Announcement No. A-2012-02, the maximum dollar-value limit for debit 
card transactions is eliminated. Only Visa and MasterCard branded 
debit cards are accepted by Pay.gov.
---------------------------------------------------------------------------

4. De Minimis Regulatory Fees
    44. 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 2015 regulatory fees. The de minimis 
threshold applies only to filers of annual regulatory fees (not 
regulatory fees paid through multi-year filings), and is not a 
permanent exemption. Regulatees will need to reevaluate their total fee 
liability each fiscal year to determine whether they meet the de 
minimis exemption.
5. Standard Fee Calculations and Payment Dates
    45. 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 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.\147\ For RespOrgs that manage 
Toll Free Numbers (TFN), regulatory fees should be paid on all working, 
assigned, and reserved toll free numbers, including those toll free 
numbers that are in transit status, or any other status as defined in 
section 52.103 of the Commission's rules. The unit count should be 
based on toll free numbers managed by RespOrgs on or about December 31, 
2015.
---------------------------------------------------------------------------

    \147\ Audio bridging services are toll teleconferencing 
services.
---------------------------------------------------------------------------

     Wireless Services: CMRS cellular, mobile, and messaging 
services (fees based on number of subscribers or telephone number 
count): Regulatory fees must be paid for authorizations that were 
granted on or before October 1, 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.

[[Page 65935]]

     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.\148\ 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.
---------------------------------------------------------------------------

    \148\ 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 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.\149\ 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.\150\
---------------------------------------------------------------------------

    \149\ We encourage terrestrial and satellite service providers 
to seek guidance from the International Bureau's Policy Division to 
verify their IBC reporting processes to ensure that their 
calculation methods comply with our rules.
    \150\ 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

    46. 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'').\151\ 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).
---------------------------------------------------------------------------

    \151\ See FY 2005 Report and Order, 20 FCC Rcd at 12264, 
paragraphs 38-44.
---------------------------------------------------------------------------

    47. 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.\152\ 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.
---------------------------------------------------------------------------

    \152\ 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.
---------------------------------------------------------------------------

    48. 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.

C. Enforcement

    49. To be considered timely, regulatory fee payments must be made 
electronically by the payment due date for regulatory fees. Section 
9(c) of the Act requires us to impose a late payment penalty of 25 
percent of the unpaid amount to be assessed on the first day following 
the deadline for filing these fees.\153\ Failure to pay regulatory fees 
and/or any late penalty will subject regulatees to sanctions, including 
those set forth in section 1.1910 of the Commission's rules,\154\ which 
generally requires the Commission to withhold action on ``applications, 
including on a petition for reconsideration or any application for 
review of a fee determination, or requests for authorization by any 
entity found to be delinquent in its debt to the Commission'' and in 
the DCIA.\155\ We

[[Page 65936]]

also assess administrative processing charges on delinquent debts to 
recover additional costs incurred in processing and handling the debt 
pursuant to the DCIA and section 1.1940(d) of the Commission's 
rules.\156\ These administrative processing charges will be assessed on 
any delinquent regulatory fee, in addition to the 25 percent late 
charge penalty. In the case of partial payments (underpayments) of 
regulatory fees, the payor will be given credit for the amount paid, 
but if it is later determined that the fee paid is incorrect or not 
timely paid, then the 25 percent late charge penalty (and other charges 
and/or sanctions, as appropriate) will be assessed on the portion that 
is not paid in a timely manner.
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    \153\ 47 U.S.C. 159(c).
    \154\ See 47 CFR 1.1910.
    \155\ Delinquent debt owed to the Commission triggers the ``red 
light rule,'' which places a hold on the processing of pending 
applications, fee offsets, and pending disbursement payments. 47 CFR 
1.1910, 1.1911, 1.1912. In 2004, the Commission adopted rules 
implementing the requirements of the DCIA. See Amendment of Parts 0 
and 1 of the Commission's Rules, MD Docket No. 02-339, Report and 
Order, 19 FCC Rcd 6540 (2004); 47 CFR part 1, subpart O, Collection 
of Claims Owed the United States.
    \156\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------

    50. Pursuant to the ``red light rule,'' we will withhold action on 
any applications or other requests for benefits filed by anyone who is 
delinquent in any non-tax debts owed to the Commission (including 
regulatory fees) and will ultimately dismiss those applications or 
other requests if payment of the delinquent debt or other satisfactory 
arrangement for payment is not made.\157\ Failure to pay regulatory 
fees can also result in the initiation of a proceeding to revoke any 
and all authorizations held by the entity responsible for paying the 
delinquent fee(s).\158\ Pursuant to a pilot program, we have initiated 
procedures to transfer debt to the Centralized Receivables Service at 
the U.S. Treasury, as described below.
---------------------------------------------------------------------------

    \157\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
    \158\ 47 U.S.C. 159.
---------------------------------------------------------------------------

D. Transfers of Unpaid Debt to Centralized Receivables Service (CRS), 
U.S. Treasury

    51. Under section 9 of the Act, Commission rules, and federal debt 
collection laws, a licensee's regulatory fee is due on the first day of 
the fiscal year and payable at a date established in the Commission's 
annual regulatory fee Report and Order. In October 2015, the 
Commission, under revised procedures, began transferring unpaid 
regulatory fee receivables directly to the CRS at the U.S. Treasury 
rather than trying to collect the debt itself and then transferring the 
remaining unpaid debts to Treasury. Under revised procedures, the 
Commission can transfer delinquent debt to Treasury for further 
collection action within 120 days after the date of delinquency.\159\ 
However, regulatees will not likely see any substantial change in the 
current procedures of how past due debts are to be paid, except that 
the debts will be handled by CRS (U.S. Treasury) rather than by the 
Commission.
---------------------------------------------------------------------------

    \159\ See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR 1.1917.
---------------------------------------------------------------------------

E. Effective Date

    52. Providing a 30 day period after Federal Register publication 
before this Report and Order becomes effective as required by 5 U.S.C. 
553(d) will not allow sufficient time to collect the FY 2016 fees 
before FY 2016 ends on September 30, 2016. For this reason, pursuant to 
5 U.S.C. 553(d)(3), we find there is good cause to waive the 
requirements of section 553(d), and this Report and Order will become 
effective upon publication in the Federal Register. Because payments of 
the regulatory fees will not actually be due until late September, 
persons affected by this Report and Order will still have a reasonable 
period in which to make their payments and thereby comply with the 
rules established herein.

VI. Additional Tables

              Table 2--List of Commenters--Initial Comments
------------------------------------------------------------------------
            Commenter                           Abbreviation
------------------------------------------------------------------------
American Cable Association.......  ACA.
Arso Radio Corporation...........  Arso.
AT&T Services, Inc...............  AT&T.
Robert Bittner, Bob Bittner        Bittner Broadcasting.
 Broadcasting Co..
CTIA.............................  CTIA.
CenturyLink, Inc.................  CenturyLink.
Damon Collins, Blackbelt           Blackbelt Broadcasting.
 Broadcasting, Inc..
DISH Network, L.L.C..............  DISH.
EchoStar Satellite Operating       EchoStar.
 Corporation and Hughes Network
 Systems, LLC.
Kevin M. Fitzgerald..............  Fitzgerald.
Frontier Communications            Frontier.
 Corporation.
Patricia Lane, Marquee             Marquee Broadcasting.
 Broadcasting.
Level 3 Communications, LLC......  Level 3.
NTCA--The Rural Broadband          NTCA.
 Association.
Puerto Rico Broadcasters           PRBA.
 Association.
Somos, Inc.......................  Somos.
Submarine Cable Coalition........  Submarine Cable Coalition.
------------------------------------------------------------------------
                   List of Commenters--Reply Comments
------------------------------------------------------------------------
American Cable Association.......  ACA.
Adrian Brigham...................  Brigham.
CTIA.............................  CTIA.
DISH Network, L.L.C..............  DISH.
Shawn Faxon......................  Faxon.
Robert L. Vinikoor, Koor           Koor Communications.
 Communications, Inc..
National Cable &                   NCTA.
 Telecommunications Association.
NTCA--The Rural Broadband          NTCA.
 Association.
Phillip G. Drumheller, President,  P & M Radio.
 P & M Radio, LLC..
PMCM TV, LLC.....................  PMCM TV.
------------------------------------------------------------------------


[[Page 65937]]


                                         Table 3--Calculation of FY 2016 Revenue Requirements and Pro-Rata Fees
 [Regulatory fees for the first seven fee 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     Pro-rated FY                    Rounded FY  Expected FY
                     Fee Category                           FY 2016        Years     revenue     2016 revenue     Computed FY    2016 reg.       2016
                                                         payment units               estimate     requirement    2016 reg. fee      fee        revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use).................................            2,500        10      546,000         625,000              25           25      625,000
PLMRS (Shared use) (includes Rural Radio Service (47             31,100        10    3,100,000       3,110,000              10           10    3,110,000
 CFR part 22).........................................
Microwave.............................................           12,500        10    2,520,000       3,125,000              25           25    3,125,000
Marine (Ship).........................................            6,900        10      945,000       1,035,000              15           15    1,035,000
Aviation (Aircraft)...................................            4,700        10      420,000         470,000              10           10      470,000
Marine (Coast)........................................              480        10      171,500         192,000              40           40      192,000
Aviation (Ground).....................................            1,100        10      180,000         220,000              20           20      220,000
AM Class A \4\........................................               66         1      281,125         313,996           4,758        4,750      313,500
AM Class B \4\........................................            1,535         1    3,499,125       3,888,014           2,533        2,525    3,875,875
AM Class C \4\........................................              889         1    1,244,600       1,407,418           1,583        1,575    1,400,175
AM Class D \4\........................................            1,492         1    4,103,000       4,601,097           3,084        3,075    4,587,900
FM Classes A, B1 & C3 \4\.............................            3,122         1    8,613,000       9,649,637           3,091        3,100    9,678,200
FM Classes B, C, C0, C1 & C2 \4\......................            3,139         1   10,607,625      11,820,313           3,766        3,775   11,849,725
AM Construction Permits \1\...........................               15         1       17,110           9,300             620          620        9,300
FM Construction Permits \1\...........................              179         1      136,500         192,425           1,075        1,075      192,425
Satellite TV..........................................              128         1      200,025         224,000           1,750        1,750      224,000
Digital TV Markets 1-10...............................              139         1    6,274,550       8,433,889          60,675       60,675    8,433,825
Digital TV Markets 11-25..............................              139         1    5,918,400       6,348,889          45,675       45,675    6,348,825
Digital TV Markets 26-50..............................              181         1    5,000,125       5,523,889          30,519       30,525    5,525,025
Digital TV Markets 51-100.............................              283         1    4,605,825       4,304,746          15,211       15,200    4,301,600
Digital TV Remaining Markets..........................              365         1    1,838,150       1,825,000           5,000        5,000    1,825,000
Digital TV Construction Permits \1\...................                3         1        9,700          15,000           5,000        5,000       15,000
LPTV/Translators/Boosters/Class A TV..................            3,924         1    1,601,600       1,785,420             455          455    1,785,420
CARS Stations.........................................              285         1      198,000         220,875             775          775      220,875
Cable TV Systems, including IPTV......................       64,200,000         1   61,920,000      64,200,000           1.000         1.00   64,200,000
Direct Broadcast Satellite (DBS)......................       34,000,000         1    4,080,000       9,180,000           .2700          .27    9,180,000
Interstate Telecommunication Service Providers........   38,200,000,000         1  128,428,000     141,722,000        0.003710      0.00371  142,722,000
Toll Free Numbers.....................................       36,500,000         1    4,380,000       4,745,000          0.1300         0.13    4,745,000
CMRS Mobile Services (Cellular/Public Mobile).........      366,000,000         1   60,180,000      73,200,000          0.1954         0.20   73,200,000
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 Terrestrial (Common)       31,900,000         1      657,000         776,617           .0243          .02      638,000
 & Satellite (Common & Non-Common)....................
Submarine Cable Providers (see chart in Appendix B)               41.19         1    4,652,576       5,486,427         133,205      133,200    5,486,242
 \3\..................................................
Earth Stations........................................            3,400         1    1,023,000       1,173,000             345          345    1,173,000
Space Stations (Geostationary)........................               95         1   11,438,400      13,155,125         138,475      138,475   13,155,125
Space Stations (Non-Geostationary)....................                6         1      792,750         911,700         151,950      151,950      911,700
    ****** Total Estimated Revenue to be Collected....  ...............  ........  340,593,961     385,006,402  ..............  ...........  384,890,362
    ****** Total Revenue Requirement..................  ...............  ........  339,844,000     384,012,497  ..............  ...........  384,012,497
        Difference....................................  ...............  ........      749,961         993,905  ..............  ...........      877,865
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table 3
\1\ The AM and FM 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.
\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, paragraph 6 (2004).
\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 stations are listed on a grid located at the end of Table 4.


[[Page 65938]]


              Table 4--FY 2016 Schedule of Regulatory Fees
 [Regulatory fees for the first eight fee 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 Distribution Service (per call sign)                725
 (47 CFR, part 101)..................................
AM Radio Construction Permits........................                620
FM Radio Construction Permits........................              1,075
Digital TV (47 CFR part 73) VHF and UHF Commercial...  .................
    Markets 1-10.....................................             60,675
    Markets 11-25....................................             45,675
    Markets 26-50....................................             30,525
    Markets 51-100...................................             15,200
    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               .00371
 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                       138,475
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100)................................................
Space Stations (per operational system in non-                   151,950
 geostationary orbit) (47 CFR part 25)...............
International Bearer Circuits-Terrestrial/Satellites                 .02
 (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................................................            $990            $715            $620            $685          $1,075          $1,250
25,001-75,000...........................................           1,475           1,075             925           1,025           1,625           1,850
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
--------------------------------------------------------------------------------------------------------------------------------------------------------


                   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..............................................          $8,325
2.5 Gbps or greater, but less than 5 Gbps...............          16,650
5 Gbps or greater, but less than 10 Gbps................          33,300
10 Gbps or greater, but less than 20 Gbps...............          66,600
20 Gbps or greater......................................         133,200
------------------------------------------------------------------------


[[Page 65939]]

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),         Bureau (WTB) projections of new
 Aviation (Aircraft &           applications and renewals taking into
 Ground), Domestic Public       consideration existing Commission
 Fixed.                         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  Based on CDBS data, adjusted for
 VHF/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          Based on CDBS data, adjusted for
 Boosters, Class A Television.  exemptions, and actual FY 2015 payment
                                units.
BRS (formerly MDS/MMDS)......  Based on WTB reports and actual FY 2015
LMDS.........................   payment units.
                               Based on WTB reports and actual FY 2015
                                payment units.
Cable Television Relay         Based on data from Media Bureau's COALS
 Service (CARS) Stations.       database and actual FY 2015 payment
                                units.
Cable Television System        Based on publicly available data sources
 Subscribers, Including IPTV    for estimated subscriber counts and
 Subscribers.                   actual FY 2015 payment units.
Interstate Telecommunication   Based on FCC Form 499-Q data for the four
 Service Providers.             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 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

[[Page 65940]]

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 fee 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).                 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                     .17
 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                     635
 license) (47 CFR part 27)...........................
Local Multipoint Distribution Service (per call sign)                635
 (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 &                        440
 Boosters (47 CFR part 74)...........................
CARS (47 CFR part 78)................................                660
Cable Television Systems (per subscriber) (47 CFR                    .96
 part 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                       119,150
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100)................................................
Space Stations (per operational system in non-                   132,125
 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 2015 Schedule of Regulatory Fees
                                                                   [Table 7 continued]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          FY 2015 Radio Station Regulatory Fees
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                          FM Classes  B,
                    Population served                       AM Class A      AM Class B      AM Class C      AM Class D    FM Classes  A,   C, C0, C1  &
                                                                                                                              B1 & C3           C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
<=25,000................................................            $775            $645            $590            $670            $750            $925
25,001-75,000...........................................           1,550           1,300             900           1,000           1,500           1,625
75,001-150,000..........................................           2,325           1,625           1,200           1,675           2,050           3,000
150,001-500,000.........................................           3,475           2,750           1,800           2,025           3,175           3,925
500,001-1,200,000.......................................           5,025           4,225           3,000           3,375           5,050           5,775
1,200,001-3,000,00......................................           7,750           6,500           4,500           5,400           8,250           9,250
>3,000,000..............................................           9,300           7,800           5,700           6,750          10,500          12,025
--------------------------------------------------------------------------------------------------------------------------------------------------------


                   FY 2015 Schedule of Regulatory Fees
  [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

[[Page 65941]]

 
20 Gbps or greater......................................         114,700
------------------------------------------------------------------------

VII. Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\1\ an Initial Regulatory Flexibility Analysis (IRFA) was 
included in the Notice of Proposed Rulemaking.\2\ The Commission sought 
written public comment on these proposals including comment on the 
IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms to the 
IRFA.\3\
---------------------------------------------------------------------------

    \1\ 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).
    \2\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2016, Notice of Proposed Rulemaking, MD Docket No. 16-166, 81 FR 
35680 (2016) (FY 2016 NPRM).
    \3\ 5 U.S.C. 604.
---------------------------------------------------------------------------

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

    2. In this Report and Order, we conclude the Assessment and 
Collection of Regulatory Fees for Fiscal Year (FY) 2016 proceeding to 
collect $384,012,497.00 in regulatory fees for FY 2016, pursuant to 
section 9 of the Communications Act of 1934, as amended (Communications 
Act or Act).\4\ These regulatory fees will be due on September 27, 
2016. Under section 9 of the Communications Act, regulatory fees are 
mandated by Congress and collected to recover the regulatory costs 
associated with the Commission's enforcement, policy and rulemaking, 
user information, and international activities in an amount that can be 
reasonably expected to equal the amount of the Commission's annual 
appropriation.\5\
---------------------------------------------------------------------------

    \4\ 47 U.S.C. 159.
    \5\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    3. This FY 2016 Report and Order adopts a regulatory fee schedule 
that includes the following noteworthy changes from prior years: (1) An 
increase in regulatory fees across all fee categories to offset the 
Commission's facilities reduction costs; (2) an updated regulatory fee 
for Direct Broadcast Satellite (DBS) providers, a subcategory in the 
cable television and Internet Protocol Television (IPTV) category; and 
(3) adjustments to the regulatory fees on radio and television 
broadcasters, based on type and class of service and on the population 
served.

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

    4. None.

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

    5. 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.\6\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \7\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\8\ 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.\9\ Nationwide, there are a total of 
approximately 27.9 million small businesses, according to the SBA.\10\
---------------------------------------------------------------------------

    \6\ 5 U.S.C. 603(b)(3).
    \7\ 5 U.S.C. 601(6).
    \8\ 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.''
    \9\ 15 U.S.C. 632.
    \10\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' http://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf.
---------------------------------------------------------------------------

    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.'' \11\ 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.\12\ Census data for 
2012 shows that there were 3,117 firms that operated that year. Of this 
total, 3,083 operated with fewer than 1,000 employees.\13\ Thus, under 
this size standard, the majority of firms in this industry can be 
considered small.
---------------------------------------------------------------------------

    \11\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \12\ See 13 CFR 120.201, NAICS Code 517110.
    \13\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    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 Wired Telecommunications Carriers as defined in 
paragraph 6 of this FRFA. Under the applicable SBA size standard, such 
a business is small if it has 1,500 or fewer employees.\14\ According 
to Commission data, census data for 2012 shows that there were 3,117 
firms that operated that year. Of this total, 3,083 operated with fewer 
than 1,000 employees.\15\ The Commission therefore estimates that most 
providers of local exchange carrier service are small entities that may 
be affected by the rules adopted.
---------------------------------------------------------------------------

    \14\ 13 CFR 121.201, NAICS code 517110.
    \15\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    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

[[Page 65942]]

defined in paragraph 6 of this FRFA. Under that size standard, such a 
business is small if it has 1,500 or fewer employees.\16\ According to 
Commission data, 3,117 firms operated in that year. Of this total, 
3,083 operated with fewer than 1,000 employees.\17\ Consequently, the 
Commission estimates that most providers of incumbent local exchange 
service are small businesses that may be affected by the rules and 
policies adopted. Three hundred and seven (307) Incumbent Local 
Exchange Carriers reported that they were incumbent local exchange 
service providers.\18\ Of this total, an estimated 1,006 have 1,500 or 
fewer employees.\19\
---------------------------------------------------------------------------

    \16\ 13 CFR 121.201, NAICS code 517110.
    \17\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \18\ See Trends in Telephone Service, Federal Communications 
Commission, Wireline Competition Bureau, Industry Analysis and 
Technology Division at Table 5.3 (September 2010) (Trends in 
Telephone Service).
    \19\ Id.
---------------------------------------------------------------------------

    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 FRFA. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees.\20\ U.S. Census data for 2012 indicate that 3,117 
firms operated during that year. Of that number, 3,083 operated with 
fewer than 1,000 employees.\21\ Based on this data, the Commission 
concludes that the majority of Competitive LECS, CAPs, Shared-Tenant 
Service Providers, and Other Local Service Providers, are small 
entities. According to Commission data, 1,442 carriers reported that 
they were engaged in the provision of either competitive local exchange 
services or competitive access provider services.\22\ Of these 1,442 
carriers, an estimated 1,256 have 1,500 or fewer employees.\23\ In 
addition, 17 carriers have reported that they are Shared-Tenant Service 
Providers, and all 17 are estimated to have 1,500 or fewer 
employees.\24\ Also, 72 carriers have reported that they are Other 
Local Service Providers.\25\ Of this total, 70 have 1,500 or fewer 
employees.\26\ Consequently, based on internally researched FCC data, 
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.
---------------------------------------------------------------------------

    \20\ 13 CFR 121.201, NAICS code 517110.
    \21\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \22\ See Trends in Telephone Service, at Table 5.3.
    \23\ Id.
    \24\ Id.
    \25\ Id.
    \26\ Id.
---------------------------------------------------------------------------

    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 FRFA. The applicable size standard under SBA rules 
is that such a business is small if it has 1,500 or fewer 
employees.\27\ U.S. Census data for 2012 indicates that 3,117 firms 
operated during that year. Of that number, 3,083 operated with fewer 
than 1,000 employees.\28\ According to internally developed Commission 
data, 359 companies reported that their primary telecommunications 
service activity was the provision of interexchange services.\29\ Of 
this total, an estimated 317 have 1,500 or fewer employees.\30\ 
Consequently, the Commission estimates that the majority of 
interexchange service providers are small entities that may be affected 
by the rules adopted.
---------------------------------------------------------------------------

    \27\ 13 CFR 121.201, NAICS code 517110.
    \28\ Includes AM radio, FM radio, television (including low 
power and Class A), TV/FM translators and boosters, cable and IPTV, 
DBS, and Cable Television Relay Service (CARS) licenses.
    \29\ See Trends in Telephone Service, at Table 5.3.
    \30\ Id.
---------------------------------------------------------------------------

    11. Prepaid Calling Card Providers. Neither the Commission nor the 
SBA has developed a small business definition specifically for prepaid 
calling card providers. The most appropriate NAICS code-based category 
for defining 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. Establishments in this industry resell telecommunications; 
they do not operate transmission facilities and infrastructure. Mobile 
virtual networks operators (MVNOs) are included in this industry.\31\ 
Under the applicable SBA size standard, such a business is small if it 
has 1,500 or fewer employees.\32\ U.S. Census data for 2012 show that 
1,341 firms provided resale services during that year. Of that number, 
1,341 operated with fewer than 1,000 employees.\33\ Thus, under this 
category and the associated small business size standard, the majority 
of these prepaid calling card providers can be considered small 
entities. According to Commission data, 193 carriers have reported that 
they are engaged in the provision of prepaid calling cards.\34\ All 193 
carriers have 1,500 or fewer employees.\35\ Consequently, the 
Commission estimates that the majority of prepaid calling card 
providers are small entities that may be affected by the rules adopted.
---------------------------------------------------------------------------

    \31\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch.
    \32\ 13 CFR 121.201, NAICS code 517911.
    \33\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \34\ See Trends in Telephone Service, at Table 5.3.
    \35\ Id.
---------------------------------------------------------------------------

    12. Local Resellers. Neither the Commission nor the SBA has 
developed a small business size standard specifically for 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.\36\ Census 
data for 2012 show that 1,341 firms provided resale services during 
that year. Of that number, 1,341 operated with fewer than 1,000 
employees.\37\ Under this category and the associated small business 
size standard, the majority of these local resellers can be considered 
small entities. According to Commission data, 213 carriers have 
reported that they are engaged in the provision of local resale 
services.\38\ Of this total, an estimated 211 have 1,500 or fewer 
employees.\39\ Consequently, the Commission estimates that the majority 
of local resellers are small entities that may be affected by the rules 
adopted.
---------------------------------------------------------------------------

    \36\ 13 CFR 121.201, NAICS code 517911.
    \37\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \38\ See Trends in Telephone Service, at Table 5.3.
    \39\ 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.\40\ Under that size standard, such a business is small if it 
has 1,500

[[Page 65943]]

or fewer employees.\41\ Census data for 2012 show that 1,341 firms 
provided resale services during that year. Of that number, 1,341 
operated with fewer than 1,000 employees.\42\ Thus, under this category 
and the associated small business size standard, the majority of these 
resellers can be considered small entities. According to Commission 
data, 881 carriers have reported that they are engaged in the provision 
of toll resale services.\43\ Of this total, an estimated 857 have 1,500 
or fewer employees.\44\ Consequently, the Commission estimates that the 
majority of toll resellers are small entities.
---------------------------------------------------------------------------

    \40\ 13 CFR 121.201, NAICS code 517911.
    \41\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \42\ Id.
    \43\ Trends in Telephone Service, at Table 5.3.
    \44\ Id.
---------------------------------------------------------------------------

    14. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a definition 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 
FRFA. Under the applicable SBA size standard, such a business is small 
if it has 1,500 or fewer employees.\45\ Census data for 2012 shows that 
there were 3,117 firms that operated that year. Of this total, 3,083 
operated with fewer than 1,000 employees.\46\ Thus, under this category 
and the associated small business size standard, the majority of Other 
Toll Carriers can be considered small. According to internally 
developed Commission data, 284 companies reported that their primary 
telecommunications service activity was the provision of other toll 
carriage.\47\ Of these, an estimated 279 have 1,500 or fewer 
employees.\48\ Consequently, the Commission estimates that most Other 
Toll Carriers are small entities.
---------------------------------------------------------------------------

    \45\ 13 CFR 121.201, NAICS code 517110.
    \46\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \47\ Trends in Telephone Service, at Table 5.3.
    \48\ 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. Establishments in this industry have spectrum licenses and 
provide services using that spectrum, such as cellular services, paging 
services, wireless Internet access, and wireless video services.\49\ 
The appropriate size standard under SBA rules is that such a business 
is small if it has 1,500 or fewer employees. For this industry, Census 
data for 2012 show that there were 967 firms that operated for the 
entire year. Of this total, 955 firms had fewer than 1,000 employees. 
Thus under this category and the associated size standard, the 
Commission estimates that the majority of wireless telecommunications 
carriers (except satellite) are small entities. Similarly, according to 
internally developed Commission data, 413 carriers reported that they 
were engaged in the provision of wireless telephony, including cellular 
service, Personal Communications Service (PCS), and Specialized Mobile 
Radio (SMR) services.\50\ Of this total, an estimated 261 have 1,500 or 
fewer employees.\51\ Thus, using available data, we estimate that the 
majority of wireless firms can be considered small.
---------------------------------------------------------------------------

    \49\ NAICS Code 517210. See http://www.census.gov/cgi-bin/ssd/
naics/naiscsrch.
    \50\ Trends in Telephone Service, at Table 5.3.
    \51\ Id.
---------------------------------------------------------------------------

    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.'' \52\ These establishments 
also produce or transmit visual programming to affiliated broadcast 
television stations, which in turn broadcast the programs to the public 
on a predetermined schedule. Programming may originate in their own 
studio, from an affiliated network, or from external sources. The SBA 
has created the following small business size standard for Television 
Broadcasting firms: Those having $38.5 million or less in annual 
receipts.\53\ The 2012 Economic Census reports that 751 television 
broadcasting firms operated during that year. Of that number, 656 had 
annual receipts of less than $25 million per year. Based on that Census 
data we conclude that a majority of firms that operate television 
stations are small. The Commission has estimated the number of licensed 
commercial television stations to be 1,387.\54\ 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.\55\ We therefore estimate 
that the majority of commercial television broadcasters are small 
entities.
---------------------------------------------------------------------------

    \52\ U.S. Census Bureau, 2012 NAICS Code Economic Census 
Definitions, http://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \53\ 13 CFR 121.201, NAICS code 515120.
    \54\ 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.
    \55\ We recognize that BIA's estimate differs slightly from the 
FCC total given supra.
---------------------------------------------------------------------------

    17. In assessing whether a business concern qualifies as small 
under the above definition, business (control) affiliations \56\ 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.
---------------------------------------------------------------------------

    \56\ ``[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.\57\ These stations are non-profit, and therefore considered to be 
small entities.\58\ There are also 2,528 low power television stations, 
including Class A stations (LPTV).\59\ 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.
---------------------------------------------------------------------------

    \57\ 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.
    \58\ See generally 5 U.S.C. 601(4), (6).
    \59\ 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 Stations. 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

[[Page 65944]]

network, or from external sources.'' \60\ The SBA has established a 
small business size standard for this category, which is: Such firms 
having $38.5 million or less in annual receipts.\61\ Census data for 
2012 show that 2,849 radio station firms operated during that year. Of 
that number, 2,806 operated with annual receipts of less than $25 
million per year.\62\ According to Commission staff review of BIA 
Advisory Services, LLC's Media Access Pro Radio Database, on March 28, 
2012, about 10,759 (97 percent) of 11,102 commercial radio stations had 
revenues of $38.5 million or less. Therefore, the majority of such 
entities are small entities.
---------------------------------------------------------------------------

    \60\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \61\ 13 CFR 121.201, NAICS code 515112.
    \62\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    20. In assessing whether a business concern qualifies as small 
under the above size standard, business affiliations must be 
included.\63\ In addition, to be determined to be a ``small business,'' 
the entity may not be dominant in its field of operation.\64\ 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.
---------------------------------------------------------------------------

    \63\ ``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).
    \64\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------

    21.Cable Television and Other Subscription Programming. This 
industry comprises establishments primarily engaged in operating 
studios and facilities for the broadcasting of programs on a 
subscription or fee basis. The broadcast programming is typically 
narrowcast in nature (e.g., limited format, such as news, sports, 
education, or youth-oriented). These establishments produce programming 
in their own facilities or acquire programming from external sources. 
The programming material is usually delivered to a third party, such as 
cable systems or direct-to-home satellite systems, for transmission to 
viewers.\65\ The SBA has established a size standard for this industry 
of $38.5 million or less. Census data for 2012 shows that there were 
367 firms that operated that year. Of this total, 319 operated with 
annual receipts of less than $25 million.\66\ 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.
---------------------------------------------------------------------------

    \65\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \66\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US-51SSSZ5&prodType=Table.
---------------------------------------------------------------------------

    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.\67\ Industry data 
indicate that there are currently 4,600 active cable systems in the 
United States.\68\ Of this total, all but ten cable operators 
nationwide are small under the 400,000-subscriber size standard.\69\ In 
addition, under the Commission's rate regulation rules, a ``small 
system'' is a cable system serving 15,000 or fewer subscribers.\70\ 
Current Commission records show 4,600 cable systems nationwide.\71\ Of 
this total, 3,900 cable systems have fewer than 15,000 subscribers, and 
700 systems have 15,000 or more subscribers, based on the same 
records.\72\ Thus, under this standard as well, we estimate that most 
cable systems are small entities.
---------------------------------------------------------------------------

    \67\ 47 CFR 76.901(e).
    \68\ 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.
    \69\ See SNL KAGAN at www.snl.com/interactiveX/top cableMSOs 
aspx?period2015Q1&sortcol=subscribersbasic&sortorder=desc.
    \70\ 47 CFR 76.901(c).
    \71\ See footnote 2, supra.
    \72\ 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 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.'' \73\ There are approximately 52,403,705 cable video 
subscribers in the United States today.\74\ 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.\75\ 
Based on available data, we find that all but nine incumbent cable 
operators are small entities under this size standard.\76\ 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.\77\ Although it seems certain that some 
of these cable system operators are affiliated with entities whose 
gross annual revenues exceed $250 million, 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.
---------------------------------------------------------------------------

    \73\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \74\ See SNL KAGAN at www.snl.com/interactivex/MultichannelIndustryBenchmarks.aspx.
    \75\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \76\ See SNL KAGAN at www.snl.com/interactivex/TopCable 
MSOs.aspx.
    \77\ 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.\78\ The SBA determines that a wireline business is small 
if it has fewer than 1,500 employees.\79\ Census data for 2012 indicate 
that 3,117 wireline companies were operational during that year. Of 
that number, 3,083 operated with fewer than 1,000 employees.\80\ Based 
on that data, we conclude that the majority of

[[Page 65945]]

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: AT&T and DISH Network.\81\ AT&T 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.
---------------------------------------------------------------------------

    \78\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \79\ NAICs CODE 517110; 13 CFR 121.201.
    \80\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
    \81\ See 15th Annual Video Competition Report, 28 FCC Rcd at 
1057, Section 27.
---------------------------------------------------------------------------

    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.\82\ The SBA has 
developed a small business size standard for ``All Other 
Telecommunications,'' which consists of all such firms with gross 
annual receipts of $32.5 million or less.\83\ For this category, census 
data for 2012 show that there were 1,442 firms that operated for the 
entire year. Of these firms, a total of 1,400 had gross annual receipts 
of less than $25 million.\84\ Thus, a majority of ``All Other 
Telecommunications'' firms potentially affected by the rules adopted 
can be considered small.
---------------------------------------------------------------------------

    \82\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
    \83\ 13 CFR 121.201; NAICS Code 517919.
    \84\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    26. RespOrgs. RespOrgs, i.e., Responsible Organizations, 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.\85\ Although RespOrgs are often wireline 
carriers, they can also include non-carrier entities. Therefore, in the 
definition herein of RespOrgs, two categories are presented, i.e., 
Carrier RespOrgs and Non-Carrier RespOrgs.
---------------------------------------------------------------------------

    \85\ See 47 CFR 52.101(b).
---------------------------------------------------------------------------

    27. Carrier RespOrgs. Neither the Commission, the U.S. Census, nor 
the SBA have developed a definition for Carrier RespOrgs. Accordingly, 
the Commission believes that the closest NAICS Code-based definitional 
categories for Carrier RespOrgs are Wired Telecommunications 
Carriers,\86\ and Wireless Telecommunications Carriers (except 
satellite).\87\
---------------------------------------------------------------------------

    \86\ 13 CFR 121.201, NAICS Code 517110.
    \87\ 13 CFR 121.201, NAICS Code 517210.
---------------------------------------------------------------------------

    28. The U.S. Census Bureau defines Wired Telecommunications 
Carriers 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.\88\ 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.\89\ Census data for 2012 show that there were 3,117 Wired 
Telecommunications Carrier firms that operated for that entire year. Of 
that number, 3,083 operated with less than 1,000 employees.\90\ Based 
on that data, we conclude that the majority of Carrier RespOrgs that 
operated with wireline-based technology are small.
---------------------------------------------------------------------------

    \88\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \89\ 13 CFR 120,201, NAICS Code 517110.
    \90\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    29. The U.S. Census Bureau defines Wireless Telecommunications 
Carriers (except satellite) as 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.\91\ 
The appropriate size standard under SBA rules is that such a business 
is small if it has 1,500 or fewer employees.\92\ Census data for 2012 
show that 967 Wireless Telecommunications Carriers operated in that 
year. Of that number, 955 operated with less than 1,000 employees.\93\ 
Based on that data, we conclude that the majority of Carrier RespOrgs 
that operated with wireless-based technology are small.
---------------------------------------------------------------------------

    \91\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \92\ 13 CFR 120.201, NAICS Code 517120.
    \93\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    30. Non-Carrier RespOrgs. Neither the Commission, the Census, nor 
the SBA have developed a definition of Non-Carrier RespOrgs. 
Accordingly, the Commission believes that the closest NAICS Code-based 
definitional categories for Non-Carrier RespOrgs are ``Other Services 
Related To Advertising'' \94\ and ``Other Management Consulting 
Services.'' \95\
---------------------------------------------------------------------------

    \94\ 13 CFR 120.201, NAICS Code 541890.
    \95\ 13 CFR 120.201, NAICS Code 541618.
---------------------------------------------------------------------------

    31. The U.S. Census defines Other Services Related to Advertising 
as comprising establishments primarily engaged in providing advertising 
services (except advertising agency services, public relations agency 
services, media buying agency services, media representative services, 
display advertising services, direct mail advertising services, 
advertising material distribution services, and marketing consulting 
services? \96\ The SBA has established a size standard for this 
industry as annual receipts of $15 million dollars or less.\97\ Census 
data for 2012 show that 5,804 firms operated in this industry for the 
entire year. Of that number, 5,249 operated with annual receipts of 
less than $10 million.\98\ Based on that data we conclude that the 
majority of Non-Carrier RespOrgs who provide TFN-related advertising 
services are small.
---------------------------------------------------------------------------

    \96\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \97\ 13 CFR 120.201, NAICS Code 541890.
    \98\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    32. The U.S. Census defines Other Management Consulting Services as 
establishments primarily engaged in providing management consulting 
services (except administrative and general management consulting; 
human resources consulting; marketing consulting; or process, physical 
distribution, and logistics consulting). Establishments providing 
telecommunications or utilities management consulting services are 
included in this industry.\99\ The SBA has established a size standard 
for this industry of $15 million dollars or

[[Page 65946]]

less.\100\ Census data for 2012 show that 3,683 firms operated in this 
industry for that entire year. Of that number, 3,632 operated with less 
than $10 million in annual receipts.\101\ Based on this data, we 
conclude that a majority of non-carrier RespOrgs who provide TFN-
related management consulting services are small.\102\
---------------------------------------------------------------------------

    \99\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \100\ 13 CFR 120.201, NAICS CODE 514618.
    \101\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
    \102\ The four NAICS Code-based categories selected above to 
provide definitions for Carrier and Non-Carrier RespOrgs were 
selected because as a group they refer generically and 
comprehensively to all RespOrgs. Therefore, all RespOrgs, including 
those not identified specifically or individually, must comply with 
the rules adopted in the Regulatory Fees Report and Order associated 
with this Final Regulatory Flexibility Analysis.
---------------------------------------------------------------------------

    33. In addition to the data contained in the four (see above) U.S. 
Census NAICS Code categories that provide definitions of what services 
and functions the Carrier and Non-Carrier RespOrgs provide, Somos, the 
trade association that monitors RespOrg activities, compiled data 
showing that as of July 1, 2016 there were 23 RespOrgs operational in 
Canada and 436 RespOrgs operational in the United States, for a total 
of 459 RespOrgs currently registered with Somos.\103\
---------------------------------------------------------------------------

    \103\ Email from Jennifer Blanchard of Somos dated July 1, 2016.
---------------------------------------------------------------------------

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

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

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

    35. 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.\104\
---------------------------------------------------------------------------

    \104\ 5 U.S.C. 603(c)(1) through (c)(4).
---------------------------------------------------------------------------

    36. This Report and Order does not adopt any new reporting 
requirements. Therefore no adverse economic impact on small entities 
will be sustained based on reporting requirements.
    37. In keeping with the requirements of the Regulatory Flexibility 
Act, we have considered certain alternative means of mitigating the 
effects of fee increases to a particular industry segment. For example, 
beginning last year, in FY 2015, the Commission increased the de 
minimis threshold from under $10 to $500 (the total of all annual 
regulatory fees), which will impact many small entities that pay 
regulatory fees for ITSP, paging, cellular, cable, and Low Power 
Television/FM Translators. Historically, many of these small entities 
have been late in making their fee payments to the Commission by the 
due date. This increase in the de minimis threshold to $500 will 
relieve regulatees both financially and administratively. This Report 
and Order also adopts regulatory fees for the smaller market AM and FM 
stations at a lower amount than had been proposed. Finally, regulatees 
may also seek waivers or other relief on the basis of financial 
hardship. See 47 CFR 1.1166.

F. Federal Rules That May Duplicate, Overlap, or Conflict

    38. None.

VIII. Ordering Clauses

    39. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and 
(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47 
U.S.C. 154(i), 154(j), 159, and 303(r), this Report and Order IS HEREBY 
ADOPTED.
    40. IT IS FURTHER ORDERED that this Report and Order SHALL BE 
EFFECTIVE September 26, 2016.
    41. IT IS FURTHER ORDERED that the Commission's Consumer & 
Governmental Affairs Bureau, Reference Information Center, SHALL SEND a 
copy of this Report and Order, including the Final Regulatory 
Flexibility Analysis, to the Chief Counsel for Advocacy of the U.S. 
Small Business Administration.

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure, Radio, Reporting and 
recordkeeping requirements.

    Federal Communications Commission.
Marlene H. Dortch.
Secretary.

Rule Changes

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

PART 1--PRACTICE AND PROCEDURE

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

    Authority: 47 U.S.C. 151, 154(i), 155, 157, 225, 303(r), 309, 
1403, 1404, 1451, and 1452.

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


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

------------------------------------------------------------------------
          Exclusive use services  (per license)           Fee amount \1\
------------------------------------------------------------------------
1. Land Mobile (Above 470 MHz and 220 MHz Local, Base
 Station & SMRS) (47 CFR part 90)
  (a) New, Renew/Mod (FCC 601 & 159)....................          $25.00
  (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159)           25.00
  (c) Renewal Only (FCC 601 & 159)......................           25.00
  (d) Renewal Only (Electronic Filing) (FCC 601 & 159)..           25.00
220 MHz Nationwide:
  (a) New, Renew/Mod (FCC 601 & 159)....................           25.00
  (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159)           25.00
  (c) Renewal Only (FCC 601 & 159)......................           25.00
  (d) Renewal Only (Electronic Filing) (FCC 601 & 159)..           25.00
2. Microwave (47 CFR Pt. 101) (Private)
  (a) New, Renew/Mod (FCC 601 & 159)....................           25.00
  (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159)           25.00
  (c) Renewal Only (FCC 601 & 159)......................           25.00
  (d) Renewal Only (Electronic Filing) (FCC 601 & 159)..           25.00
3. Shared Use Services Land Mobile (Frequencies Below
 470 MHz--except 220 MHz)

[[Page 65947]]

 
  (a) New, Renew/Mod (FCC 601 & 159)....................           10.00
  (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159)           10.00
  (c) Renewal Only (FCC 601 & 159)......................           10.00
  (d) Renewal Only (Electronic Filing) (FCC 601 & 159)..           10.00
Rural Radio (Part 22):
  (a) New, Additional Facility, Major Renew/Mod                    10.00
   (Electronic Filing) (FCC 601 & 159)..................
  (b) Renewal, Minor Renew/Mod (Electronic Filing) (FCC            10.00
   601 & 159) Marine Coast..............................
  (a) New Renewal/Mod (FCC 601 & 159)...................           40.00
  (b) New, Renewal/Mod (Electronic Filing) (FCC 601 &              40.00
   159).................................................
  (c) Renewal Only (FCC 601 & 159)......................           40.00
  (d) Renewal Only (Electronic Filing) (FCC 601 & 159)..           40.00
Aviation Ground:
  (a) New, Renewal/Mod (FCC 601 & 159)..................           20.00
  (b) New, Renewal/Mod (Electronic Filing) (FCC 601 &              20.00
   159).................................................
  (c) Renewal Only (FCC 601 & 159)......................           20.00
  (d) Renewal Only (Electronic Only) (FCC 601 & 159)....           20.00
Marine Ship
  (a) New, Renewal/Mod (FCC 605 & 159)..................           15.00
  (b) New, Renewal/Mod (Electronic Filing) (FCC 605 &              15.00
   159).................................................
  (c) Renewal Only (FCC 605 & 159)......................           15.00
  (d) Renewal Only (Electronic Filing) (FCC 605 & 159)..           15.00
Aviation Aircraft:
  (a) New, Renew/Mod (FCC 605 & 159)....................           10.00
  (b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159)           10.00
  (c) Renewal Only (FCC 605 & 159)......................           10.00
  (d) Renewal Only (Electronic Filing) (FCC 605 & 159)..           10.00
4. CMRS Cellular/Mobile Services (per unit) (FCC 159)            \2\ .20
5. CMRS Messaging Services (per unit) (FCC 159)                   \3\.08
6. Broadband Radio Service (formerly MMDS and MDS)                   725
7. Local Multipoint Distribution Service                             725
------------------------------------------------------------------------
\1\ Note that ``small fees'' are collected in advance for the entire
  license term. Therefore, the annual fee amount shown in this table
  that is a small fee (categories 1 through 5) must be multiplied by the
  10-year license term to arrive at the total amount of regulatory fees
  owed. Also, application fees may apply as detailed in section 1.1102
  of this chapter.
\2\ These are standard fees that are to be paid in accordance with
  section 1.1157(b) of this chapter.
\3\ These are standard fees that are to be paid in accordance with
  section 1.1157(b) of this chapter.


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


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

------------------------------------------------------------------------
           Radio [AM and FM]  (47 CFR part 73)              Fee amount
------------------------------------------------------------------------
1. AM Class A:
  <=25,000 population...................................            $990
  25,001-75,000 population..............................           1,475
  75,001-150,000 population.............................           2,200
  150,001-500,000 population............................           3,300
  500,001-1,200,000 population..........................           5,500
  1,200,001-3,000,000 population........................           8,250
  3,000,001-6,000,000 population........................          11,000
  >6,000,000 population.................................          13,750
2. AM Class B:
  <=25,000 population...................................             715
  25,001-75,000 population..............................           1,075
  75,001-150,000 population.............................           1,600
  150,001-500,000 population............................           2,375
  500,001-1,200,000 population..........................           3,975
  1,200,001-3,000,000 population........................           5,950
  3,000,001-6,000,000 population........................           7,950
  >6,000,000 population.................................           9,950
3. AM Class C:
  <=25,000 population...................................             620
  25,001-75,000 population..............................             925
  75,001-150,000 population.............................           1,375
  150,001-500,000 population............................           2,075
  500,001-1,200,000 population..........................           3,450
  1,200,001-3,000,000 population........................           5,175
  3,000,001-6,000,000 population........................           6,900
  >6,000,000 population.................................           8,625
4. AM Class D:
  <=25,000 population...................................             685
  25,001-75,000 population..............................           1,025
  75,001-150,000 population.............................           1,525
  150,001-500,000 population............................           2,275
  500,001-1,200,000 population..........................           3,800
  1,200,001-3,000,000 population........................           5,700
  3,000,001-6,000,000 population........................           7,600
  >6,000,000 population.................................           9,500
5. AM Construction Permit...............................             620
6. FM Classes A, B1 and C3:
  <=25,000 population...................................           1,075
  25,001-75,000 population..............................           1,625
  75,001-150,000 population.............................           2,400
  150,001-500,000 population............................           3,600
  500,001-1,200,000 population..........................           6,000
  1,200,001-3,000,000 population........................           9,000
  3,000,001-6,000,000 population........................          12,000
  >6,000,000 population.................................          15,000
7. FM Classes B, C, C0, C1 and C2:
  <=25,000 population...................................           1,250
  25,001-75,000 population..............................           1,850
  75,001-150,000 population.............................           2,750
  150,001-500,000 population............................           4,125
  500,001-1,200,000 population..........................           6,875
  1,200,001-3,000,000 population........................          10,300
  3,000,001-6,000,000 population........................          13,750
  >6,000,000 population.................................          17,175
8. FM Construction Permits                                         1,075
------------------------------------------------------------------------
                  TV (47 CFR, part 73)                    ..............
------------------------------------------------------------------------
Digital TV (UHF and VHF Commercial Stations):
  1. Markets 1 thru 10..................................         $60,675
  2. Markets 11 thru 25.................................          45,675
  3. Markets 26 thru 50.................................          30,525

[[Page 65948]]

 
  4. Markets 51 thru 100................................          15,200
  5. Remaining Markets..................................           5,000
  6. Construction Permits...............................           5,000
Satellite UHF/VHF Commercial:
  1. All Markets........................................           1,750
  Low Power TV, Class A TV, TV/FM Translator, & TV/FM                455
   Booster (47 CFR part 74).............................
------------------------------------------------------------------------


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


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

------------------------------------------------------------------------
            Radio facilities                        Fee amount
------------------------------------------------------------------------
1. Microwave (Domestic Public Fixed)      $25.00.
 (Electronic Filing) (FCC Form 601 &
 159).
Carriers
  1. Interstate Telephone Service         $.00371.
   Providers (per interstate and
   international end-user revenues (see
   FCC Form 499-A).
  2. Toll Free Number Fee...............  $.13 per Toll Free Number.
------------------------------------------------------------------------


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


Sec.  1.1155  Schedule of regulatory fees for cable television 
services.

------------------------------------------------------------------------
                                                    Fee amount
------------------------------------------------------------------------
1. Cable Television Relay Service.......  $775.
2. Cable TV System, Including IPTV (per   $1.00.
 subscriber).
3. Direct Broadcast Satellite (DBS).....  $.27 per subscriber.
------------------------------------------------------------------------

0
6. Section 1.1156 is revised to read as follows:


Sec.  1.1156  Schedule of regulatory fees for international services.

    (a) The following schedule applies for the listed services:

------------------------------------------------------------------------
              Fee category                          Fee amount
------------------------------------------------------------------------
Space Stations (Geostationary Orbit)....  $138,475.
Space Stations (Non-Geostationary Orbit)  $151,950.
Earth Stations: Transmit/Receive &        $345.
 Transmit only (per authorization or
 registration).
------------------------------------------------------------------------

    (b) International Terrestrial and Satellite. (1) Regulatory fees 
for International Bearer Circuits are to be paid by facilities-based 
common carriers that have active (used or leased) international bearer 
circuits as of December 31 of the prior year in any terrestrial or 
satellite transmission facility for the provision of service to an end 
user or resale carrier, which includes active circuits to themselves or 
to their affiliates. In addition, non-common carrier satellite 
operators must pay a fee for each circuit sold or leased to any 
customer, including themselves or their affiliates, other than an 
international common carrier authorized by the Commission to provide 
U.S. international common carrier services. ``Active circuits'' for 
these purposes include backup and redundant circuits. In addition, 
whether circuits are used specifically for voice or data is not 
relevant in determining that they are active circuits.
    (2) The fee amount, per active 64 KB circuit or equivalent will be 
determined for each fiscal year.

------------------------------------------------------------------------
 International terrestrial and satellite
   (capacity as of  December 31, 2015)              Fee amount
------------------------------------------------------------------------
Terrestrial Common Carrier..............  $0.02 per 64 KB Circuit.
Satellite Common Carrier................
Satellite Non-Common Carrier............
------------------------------------------------------------------------

    (c) Submarine cable: Regulatory fees for submarine cable systems 
will be paid annually, per cable landing license, for all submarine 
cable systems operating as of December 31 of the prior year. The fee 
amount will be determined by the Commission for each fiscal year.

------------------------------------------------------------------------
Submarine cable systems  (capacity as of
              Dec. 31, 2015)                        Fee amount
------------------------------------------------------------------------
<2.5 Gbps...............................  $8,325.
2.5 Gbps or greater, but less than 5      $16,650.
 Gbps.
5 Gbps or greater, but less than 10 Gbps  $33,300.
10 Gbps or greater, but less than 20      $66,600.
 Gbps.
20 Gbps or greater......................  $133,200.
------------------------------------------------------------------------

[FR Doc. 2016-22216 Filed 9-23-16; 8:45 am]
 BILLING CODE 6712-01-P