[Federal Register Volume 82, Number 183 (Friday, September 22, 2017)]
[Rules and Regulations]
[Pages 44322-44346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19386]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 17-134; FCC 17-111]


Assessment and Collection of Regulatory Fees for Fiscal Year 2017

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 $356,710,992 that Congress has 
required the Commission to collect for fiscal year 2017. Section 9 of 
the Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees under sections 9(b)(2) and 
9(b)(3), respectively, for annual ``Mandatory Adjustments'' and 
``Permitted Amendments'' to the Schedule of Regulatory Fees.

DATES: Effective September 22, 2017. To avoid penalties and interest, 
regulatory fees should be paid by the due date of September 26, 2017.

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, FCC 17-111, MD Docket No. 17-134, adopted on September 1, 
2017 and released on September 5, 2017. The full text of this document 
is available for public inspection and copying during normal business 
hours in the FCC Reference Center (Room CY-A257), 445 12th Street SW., 
Washington, DC 20554, or by downloading the text from the Commission's 
Web site at http://transition.fcc.gov/Daily_Releases/Daily_Business/2017/db0906/FCC-17-111A1.pdf.

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 the 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. The Report and Order adopts a schedule of regulatory fees to 
assess and collect $356,710,992 in regulatory fees for fiscal year (FY) 
2017, pursuant to section 9 of the Communications Act of 1934, as 
amended (Communications Act or Act) and the Commission's FY 2017 
Appropriation.\2\ The schedule of regulatory fees for FY 2017 adopted 
here is listed in Table 4. These regulatory fees are due in September 
2017. The FY 2017 regulatory fees are based on the proposals in the FY 
2017 NPRM,\3\ considered in light of the comments received and 
Commission analysis.
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    \2\ 47 U.S.C. 159. Consolidated Appropriations Act, 2017, 
Division E--Financial Services and General Government Appropriations 
Act, 2017, Title V--Independent Agencies, Public Law 115-31 (May 5, 
2017), available at https://www.congress.gov/bill/115th-congress/house-bill/244/text.
    \3\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2017, Notice of Proposed Rulemaking, 32 FCC Rcd 4526 (FY 2017 NPRM); 
82 FR 26019, June 6, 2017.
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III. Background

    5. Congress adopted a regulatory fee schedule in 1993 \4\ and 
authorized the

[[Page 44323]]

Commission to assess and collect annual regulatory fees pursuant to the 
schedule, as amended by the Commission.\5\ 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.\6\ The 
Commission makes changes to the regulatory fee schedule ``if the 
Commission determines that the schedule requires amendment to comply 
with the requirements'' \7\ of section 9(b)(1)(A) of the Act.\8\ 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.'' Regulatory fees must also cover the costs the 
Commission incurs in regulating entities that are statutorily exempt 
from paying regulatory fees,\9\ entities whose regulatory fees are 
waived,\10\ and entities that provide nonregulated services. Thus, 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 \11\ levels, and any other issues of relevance 
to the proposed fee schedule.\12\ 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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    \4\ 47 U.S.C. 159(g) (showing original fee schedule prior to 
Commission amendment).
    \5\ 47 U.S.C. 159.
    \6\ 47 U.S.C. 159(b)(1)(B).
    \7\ 47 U.S.C. 159(b)(2).
    \8\ 47 U.S.C. 159(b)(1)(A).
    \9\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2004, Report and Order, 19 FCC Rcd 11662, 11666, para 11 (FY 2004 
Report and Order); 69 FR 41028, July 7, 2004. For example, 
governmental and nonprofit entities are exempt from regulatory fees 
under section 9(h) of the Act. 47 U.S.C. 159(h); 47 CFR 1.1162.
    \10\ 47 CFR 1.1166.
    \11\ 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.
    \12\ 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 . . . .'' \13\ 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.'' \14\ 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.\15\
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    \13\ 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.
    \14\ As of September 2016, for regulatory fee purposes, 
excluding auctions-funded FTEs, the direct FTEs are Wireline Bureau 
(167); Media Bureau (141); Wireless Bureau (92); and International 
Bureau (24), for a total of 424 direct FTEs. The indirect FTEs, for 
regulatory fee purposes, non-auctions-funded, are from the 
International Bureau (81), Enforcement Bureau (237), Consumer & 
Governmental Affairs Bureau (148), Public Safety & Homeland Security 
Bureau (101), Chairman and Commissioners' offices (21), Office of 
the Managing Director (159), Office of General Counsel (77), Office 
of the Inspector General (43), Office of Communications Business 
Opportunities (9), Office of Engineering and Technology (78), Office 
of Legislative Affairs (11), Office of Strategic Planning and Policy 
Analysis (19), Office of Workplace Diversity (3), Office of Media 
Relations (16), and Office of Administrative Law Judges (4), 
totaling 1,007 indirect FTEs. The total direct and indirect FTEs 
number 1,431.
    \15\ See Procedures for Assessment and Collection of Regulatory 
Fees, Notice of Proposed Rulemaking, 27 FCC Rcd 8458, 8461-62, 
paras. 8-11 (2012) (FY 2012 NPRM); 77 FR 49749, 49752-54, August 17, 
2012.
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    7. As part of its annual review, the Commission seeks to improve 
its regulatory fee analysis.\16\ For example, in the FY 2013 Report and 
Order, 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; \17\ reallocated some FTEs 
from the International Bureau as indirect; \18\ combined the UHF and 
VHF television stations into one regulatory fee category; \19\ and 
added Internet Protocol Television (IPTV) to the cable television fee 
category.\20\ In the FY 2014 Report and Order, the Commission adopted a 
new fee subcategory for toll free numbers in the Interstate 
Telecommunications Service Provider (ITSP) \21\ fee category; \22\ 
increased the de minimis threshold to $500 for annual regulatory fee 
payors; \23\ and eliminated several categories from the regulatory fee 
schedule.\24\ In the FY 2015 Report and Order, the Commission reduced 
the regulatory fee for submarine cable, terrestrial, and satellite 
international bearer circuits.\25\ The Commission also adopted a 
regulatory fee for DBS, as a subcategory of the cable television and 
IPTV fee category,\26\ and for toll-free numbers \27\ and reallocated 
four International Bureau FTEs from direct to indirect.\28\ In the FY 
2016 Report and Order, the Commission adjusted regulatory fees for 
radio and television

[[Page 44324]]

broadcasters, based on the type and class of service and on the 
population served; \29\ adopted an increase in the regulatory fee for 
DBS providers within the cable television and IPTV regulatory fee 
category; \30\ and adopted an across the board fee increase for the 
Commission's moving expenses.\31\ In this proceeding, the Commission 
continues to improve and reform the regulatory fee process.
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    \16\ 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); 73 FR 50285, August 26, 2008.
    \17\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2013, Report and Order, 28 FCC Rcd 12351, 12354-58, paras. 10-
20 (2013) (FY 2013 Report and Order); 78 FR 52433, August 23, 2013. 
The Commission now updates the FTE allocations annually. This was 
recommended in a report issued by the Government Accountability 
Office (GAO) in 2012. See GAO ``Federal Communications Commission 
Regulatory Fee Process Needs to be Updated,'' GAO-12-686 (Aug. 2012) 
(GAO Report) at 36 (available at http://www.gao.gov/products/GAO-12-686).
    \18\ FY 2013 Report and Order, 28 FCC Rcd at 12355-58, paras. 
13-20; 78 FR 52433.
    \19\ Id., 28 FCC Rcd at 12361-62, paras. 29-31; 78 FR 52433.
    \20\ Id., 28 FCC Rcd at 12362-63, paras. 32-33; 78 FR 52433.
    \21\ The ITSP category includes interexchange carriers (IXCs), 
incumbent local exchange carriers, toll resellers, and other IXC 
service providers.
    \22\ 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); 79 FR 54190, September 11, 2014.
    \23\ FY 2014 Report and Order, 29 FCC Rcd at 10774-76, paras. 
18-21; 79 FR 54190.
    \24\ Id., 29 FCC Rcd at 10776-77, paras. 22-24; 79 FR 54190.
    \25\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2015, Report and Order and Further Notice of Proposed 
Rulemaking, 30 FCC Rcd 10268, 10273, para. 12 (2015) (FY 2015 Report 
and Order); 80 FR 55775, September 17, 2015.
    \26\ FY 2015 Report and Order, 30 FCC Rcd at 10276-77, paras. 
19-20; 80 FR 55775.
    \27\ Id., 30 FCC Rcd at 10271-72, para. 9; 80 FR 55775.
    \28\ Id., 30 FCC Rcd at 10278, para. 24; 80 FR 55775. The 
Commission also, in the FY 2015 NPRM and Report and Order, 
eliminated two fee categories. See Assessment and Collection of 
Regulatory Fees for Fiscal Year 2015, Notice of Proposed Rulemaking, 
Report and Order, and Order, 30 FCC Rcd 5354, 5361-62, paras. 19-22 
(2015) (FY 2015 NPRM and Report and Order); 80 FR 43019, July 21, 
2015.
    \29\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2016, Report and Order, 31 FCC Rcd 10339, 10350-51, paras. 31-
33 (2016) (FY 2016 Report and Order); 81 FR 65926, September 26, 
2016.
    \30\ FY 2016 Report and Order, 31 FCC Rcd at 10347-350, paras. 
25-30; 81 FR 65926.
    \31\ Id., 31 FCC Rcd at 10341, para. 7; 81 FR 65926.
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    8. In our FY 2017 NPRM, we proposed to collect $356,710,992 in 
regulatory fees and included a detailed, proposed fee schedule. We 
received 17 comments and six reply comments.\32\
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    \32\ Commenters to the FY 2017 NPRM are listed in Table 2.
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IV. Report and Order

    9. In this FY 2017 Report and Order, we adopt a regulatory fee 
schedule for FY 2017, pursuant to section 9 of the Communications Act 
and the 2017 Consolidated Appropriations Act \33\ in order to collect 
$356,710,992 in regulatory fees.\34\ Of this amount, we project 
approximately $22.17 million (6.22 percent of the total FTE allocation) 
in fees from the International Bureau regulatees; \35\ $88.69 million 
(24.86 percent of the total FTE allocation) in fees from the Wireless 
Telecommunications Bureau regulatees; \36\ $115.58 million (32.40 
percent of the total FTE allocation) from Wireline Competition Bureau 
regulatees; \37\ and $130.27 million (36.52 percent of the total FTE 
allocation) from the Media Bureau regulatees.\38\ These regulatory fees 
are due in September 2017. The schedule of regulatory fees for FY 2017 
adopted here is listed in Table 4.
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    \33\ 47 U.S.C. 159. Consolidated Appropriations Act, 2017, 
Division E--Financial Services and General Government Appropriations 
Act, 2017, Title V--Independent Agencies, Public Law 115-31 (May 5, 
2017), available at https://www.congress.gov/bill/115th-congress/house-bill/244/text.
    \34\ 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).
    \35\ Includes satellites, earth stations, and international 
bearer circuits (submarine cable systems and satellite and 
terrestrial bearer circuits).
    \36\ Includes Commercial Mobile Radio Service (CMRS), CMRS 
messaging, Broadband Radio Service/Local Multipoint Distribution 
Service (BRS/LMDS), and multi-year wireless licensees.
    \37\ Includes ITSP and toll free numbers.
    \38\ Includes AM radio, FM radio, television (including low 
power and Class A), TV/FM translators and boosters, cable television 
and IPTV, DBS, and Cable Television Relaty Service (CARS) licenses.
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A. Allocating FTEs for Regulatory Fee Purposes

    10. Under section 9 of the Act, regulatory fees are to ``be derived 
by determining the full-time equivalent number of employees 
performing'' these activities, ``adjusted to take into account factors 
that are reasonably related to the benefits provided to the payor of 
the fee by the Commission's activities . . . '' \39\ As a general 
matter, we reasonably expect that the work of the FTEs in the core 
bureaus should remain focused on the industry segment regulated by each 
of those bureaus. The work of the FTEs in the indirect bureaus and 
offices benefits the Commission and the telecommunications industry and 
is not specifically focused on the regulatees and licensees of a core 
bureau. Given 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.\40\
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    \39\ 47 U.S.C. 159(b)(1)(A).
    \40\ FY 2013 Report and Order, 28 FCC Rcd at 12357, para. 19; 78 
FR 52433. The Commission observed that the International Bureau was 
a ``singular case'' because the work of those FTEs ``primarily 
benefits licensees regulated by other bureaus.'' Id., 28 FCC Rcd at 
12355, para. 14; 78 FR 52433.
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    11. In the FY 2017 NPRM, we proposed to reallocate 38 FTEs in the 
Wireline Competition Bureau associated with Universal Service Fund work 
as indirect and to reallocate four FTEs from the Wireline Competition 
Bureau that work on wireless numbering issues to the Wireless 
Telecommunications Bureau due to the changes to the Universal Service 
regulatory landscape that no longer affect only ITSPs and the fact that 
approximately half the benefit of the work done by FTEs on numbering 
issues accrue to the CMRS industry.
1. FTEs Associated With the Universal Service Fund
    12. In the FY 2017 NPRM, the Commission explained that changes to 
the Universal Service Fund regulatory landscape require us to reexamine 
the treatment of Universal Service Fund FTEs as direct FTEs. There are 
currently approximately 51 FTEs in the Wireline Competition Bureau, 
including the bureau front office, working on Universal Service Fund 
issues, with 13 of those FTEs focused on the High-Cost program. 
Currently, there are approximately three FTEs in the Wireless 
Telecommunications Bureau, including the bureau front office, 
implementing the Mobility Fund, a universal service High-Cost support 
mechanism devoted exclusively to mobile services.\41\ These Wireline 
Competition Bureau and Wireless Telecommunications Bureau FTEs are 
considered direct FTEs for regulatory fee purposes. Other FTEs 
throughout the Commission working on universal service issues are 
indirect FTEs, including the FTEs working on universal service issues 
in the Enforcement Bureau, the Office of the Managing Director, the 
Office of the Inspector General, and the Office of the General Counsel.
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    \41\ See Connect America Fund, et al., Report and Order and 
Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663 (2011); 76 
FR 78384, December 16, 2011.
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    13. In the FY 2017 NPRM, we proposed to reallocate the 38 FTEs in 
the Wireline Competition Bureau assigned to work on the non-high-cost 
programs of the Universal Service Fund as indirect for regulatory fee 
purposes, for several reasons.\42\ The 38 FTE count is based on 
coordination between the Office of Managing Director and Wireline 
Competition Bureau staff which analyzed how many FTEs work on each of 
the USF programs.\43\ In doing so, we noted that contributions to the 
Universal Service Fund are required from service providers using any 
technology that has end-user interstate telecommunications.\44\ As we 
discussed in the FY 2017 NPRM, continuing changes in the universal 
service fund regulatory landscape requires us to reexamine the 
appropriateness of treating the FTEs working on universal service 
issues as Wireline Competition Bureau direct FTEs.\45\ Initially, 
universal service programs were focused on wireline services, but now 
wireless carriers, and more recently broadband providers, are involved 
in the E-Rate,\46\

[[Page 44325]]

Lifeline,\47\ and Rural Healthcare \48\ programs.
    In addition, three of the universal service fund programs--E-Rate, 
Lifeline, and Rural Healthcare--tie funding eligibility to the 
beneficiary, i.e., a school, a library, a low-income individual or 
family, or a rural healthcare provider, and not to Commission 
regulatees.\49\ Wireless carriers now serve a substantial, if not 
majority, of Lifeline subscribers.\50\ Also, satellite operators, Wi-Fi 
network installers, and fiber builders may all receive funding through 
the E-Rate and Rural Healthcare universal service programs.\51\ 
Similarly, multichannel video programming distributors (MVPDs), who 
also provide supported services, receive universal service funding 
through participation in both the E-rate and Rural Healthcare programs 
because they provide telecommunications and Internet access services 
that are eligible for support in those programs.\52\ And given that the 
applicants in these programs are not even regulatees--instead, they are 
the schools and libraries and healthcare providers--the bulk of the 
Commission's oversight of these programs (i.e., the costs incurred that 
create a need for regulatory fees) are not generated by regulatees. 
Indeed, seven of the ten E-Rate forms that make up the bulk of the 
Commission's oversight of the program are filed by schools and 
libraries, not service providers. Similarly, seven of the nine rural 
healthcare program forms are filed by healthcare providers, not service 
providers. In other words, ITSPs are not the sole or even majority 
contributors or beneficiaries of these three programs. Reallocating 
these Wireline Competition Bureau FTEs as indirect FTEs would be more 
consistent with how FTEs working on universal service issues are 
treated elsewhere in the Commission, e.g., similar to the 10 FTEs 
working on USF matters in the Enforcement Bureau, the 5 FTEs in the 
Office of the Managing Director, the 10 FTEs in the Office of the 
Inspector General, and the 5 FTEs in the Office of the General 
Counsel.\53\
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    \42\ FY 2017 NPRM, 32 FCC Rcd at 4529-4530, para. 10; 82 FR 
26019.
    \43\ The FCC Time and Attendance system does not provide a 
breakdown of USF work by technology or bureau.
    \44\ 47 CFR 54.706(a).
    \45\ FY 2017 NPRM, 32 FCC Rcd at 4529, para. 9; 82 FR 26019.
    \46\ ``The schools and libraries universal service support 
program, commonly known as the E-rate program, helps schools and 
libraries to obtain affordable broadband . . . . Eligible schools, 
school districts and libraries may apply individually or as part of 
a consortium [for] . . . category one services to a school or 
library (telecommunications, telecommunications services and 
Internet access), and category two services that deliver Internet 
access within schools and libraries (internal connections, basic 
maintenance of internal connections, and managed internal broadband 
services).'' See FCC Web site, ``E-Rate--Schools & Libraries USF 
Program,'' available at https://www.fcc.gov/general/e-rate-schools-libraries-usf-program#block-menu-block-4 (last visited July 17, 
2017).
    \47\ ``Since 1985, the Lifeline program has provided a discount 
on phone service for qualifying low-income consumers . . . . The 
Lifeline program is available to eligible low-income consumers in 
every state, territory, commonwealth, and on Tribal lands . . . . In 
. . . 2016 . . . the Commission included broadband as a support 
service in the Lifeline program.'' See FCC Web site, ``Lifeline 
Program for Low-Income Consumers,'' available at https://www.fcc.gov/general/lifeline-program-low-income-consumers#block-menu-block-4 (last visited July 17, 2017).
    \48\ ``The Rural Health Care Program, which includes the new 
Healthcare Connect Fund, provides funding to eligible health care 
providers (HCPs) for telecommunications and broadband services 
necessary for the provision of health care. The goal of the program 
is to improve the quality of health care available to patients in 
rural communities by ensuring that eligible HCPs have access to 
telecommunications and broadband services.'' See FCC Web site, 
``Rural Health Care Program,'' available at https://www.fcc.gov/general/rural-health-care-program#block-menu-block-4 (last visited 
July 17, 2017).
    \49\ FY 2017 NPRM, 32 FCC Rcd at 4530, para. 10; 82 FR 26019.
    \50\ Id.
    \51\ Id.
    \52\ See USAC Web site, 2017 E-Rate Eligible Services List, 
available at http://www.usac.org/sl/applicants/beforeyoubegin/eligible-services-list.aspx (last visited July 28, 2017); USAC Web 
site Rural Healthcare Eligible Services, available at http://www.usac.org/rhc/telecommunications/health-care-providers/step01/eligible-services.aspx (last visited July 28, 2017). See also 
Universal Service Administrative Company Third Quarter 2017 FCC 
Filings (E-rate and Rural Healthcare), available at http://www.usac.org/about/tools/fcc/filings/2017/q3.aspx (last visited July 
28, 2017).
    \53\ Id.
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    14. ITTA and Frontier support the proposal in the FY 2017 NPRM to 
reallocate 38 Wireline Competition Bureau FTEs as indirect, and CTIA 
argues that if the Commission reclassifies any of these FTEs, they 
should be reallocated as indirect.\54\ CenturyLink also agrees with 
this proposal and observes that the concern that the reallocation would 
impose a burden on broadcasters which do not participate in the 
universal service program is misplaced ``as there is no completely pure 
way to precisely allocate every Commission FTE.'' \55\ After 
consideration of the record on this issue and for the reasons discussed 
in the FY 2017 NPRM, i.e., that ITSPs are no longer the sole 
contributors or beneficiaries of the E-Rate, Lifeline, and Rural 
Healthcare programs and allocating these Wireline Competition Bureau 
FTEs as indirect FTEs would be more consistent with how FTEs working on 
universal service issues are treated elsewhere in the Commission, we 
adopt the proposal to reallocate 38 FTEs in the Wireline Competition 
Bureau assigned to work on the non-high-cost programs of the Universal 
Service Fund as indirect. The regulatory fee rates set forth in 
Appendix C reflect this reallocation of FTEs for regulatory fee 
purposes.
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    \54\ ITTA Comments at 5; Frontier Comments at 3; CTIA Reply 
Comments at 4-5.
    \55\ CenturyLink Comments at 4.
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    15. We disagree with SIA's argument that such a reallocation of 
FTEs from direct to indirect is ``premature'' because satellite 
operators do not yet benefit from the contributions of the FTEs working 
on universal service fund issues.\56\ The FTEs working on these 
universal service issues have already devoted substantial time to 
making sure that satellite operators are eligible to participate in 
these programs, such as by becoming ETCs or being eligible for funding 
under the Rural Healthcare program or E-Rate. Permitting satellite 
operators into the USF programs uses FTE resources at the beginning of 
a satellite operators' participation. And some satellite providers have 
begun to take advantage of that eligibility in, for example, the Rural 
Healthcare program. Thus, these FTEs are both overseeing satellite 
operators and benefiting satellite operators, making reallocation 
appropriate.
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    \56\ SIA Comments at 2-3; SIA Comments at 2 (observing that no 
satellite operator has yet been designated an eligible 
telecommunications carrier, or ETC, which is required for Lifeline 
funding).
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    16. ITTA and Frontier suggest that we also reallocate to the 
Wireless Telecommunications Bureau and/or Media Bureau direct FTEs 
working on universal service high cost issues.\57\ Frontier argues that 
we should reallocate FTEs working on High-Cost Fund issues as indirect 
FTEs because all universal service programs, including the High-Cost 
Fund, ``benefit the public and all members of the Internet ecosystem, 
not specifically or uniquely wireline companies.'' \58\ CTIA opposes 
the proposal to reallocate FTEs working on High-Cost issues, and 
observes that ITTA and Frontier have failed to show a clear case for 
reclassification of the Wireline Competition Bureau FTEs.\59\ We agree 
with CTIA that the case for reallocation has not been made at this 
time.
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    \57\ ITTA Comments at 6. CenturyLink also supports allocating 
four Wireline Competition Bureau FTEs as Wireless Telecommunications 
Bureau FTEs for regulatory fee purposes because ``wireless carriers 
now serve over 90% of Lifeline subscribers.'' CenturyLink Reply 
Comments at 4.
    \58\ Frontier Comments at 3-4. CenturyLink agrees with this 
proposal. See CenturyLink Reply Comments at 3-4.
    \59\ CTIA Reply Comments at 6.
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    17. Several parties also ask that we go farther. For example, ITTA 
argues that the Wireline Competition Bureau FTEs are ``no longer 
focused exclusively on ITSPs'' \60\ and the Commission ``must make 
adjustments to ensure that its regulatory fees reflect its actual costs 
by industry sector.'' \61\ Similarly, ITTA, Frontier, and CenturyLink 
also argue that we should combine CMRS into the ITSP category.\62\ We 
do not believe the case has been made for such large changes at this 
time, because (among

[[Page 44326]]

other things) advocates of such changes have not fully accounted for 
the substantial differences in regulatory oversight between different 
groups of regulatees nor the fact that allocating regulatory fees is 
not and cannot be an exact science. On the last point, it would be nigh 
impossible to determine the precise costs attributable to FTEs and the 
precise benefits flowing from Commission regulation to any one 
regulatee, let alone a particular cross-section of regulatees or even 
an entire industry--not to mention the complications associated with 
regulatees statutorily exempt from paying regulatory fees (such as 
governmental licensees) and with beneficiaries (such as schools and 
libraries) that are not regulatees, all of whom nonetheless create 
costs that must be recovered. As such the Commission has long taken an 
incrementalist approach, requiring substantial and specific evidence 
about regulatory burdens and benefits before making changes to the 
allocation of fees. And those seeking to change our allocations even 
further have not yet made the case for doing so.
---------------------------------------------------------------------------

    \60\ ITTA Comments at 2.
    \61\ ITTA Comments at 3 (emphasis added).
    \62\ See ITTA Comments at 10-11; Frontier Comments at 6-7; 
CenturyLink Reply Comments at 4-5.
---------------------------------------------------------------------------

    18. After reviewing the record, we conclude that our proposal in 
the FY 2017 NPRM to reallocate 38 FTEs in the Wireline Competition 
Bureau assigned to work on the non-high cost programs of the Universal 
Service Fund as indirect for regulatory fee purposes is warranted and 
consistent with section 9 of the Act. We therefore adopt the proposal 
in the FY 2017 NPRM. The regulatory fee rates set forth in Table 4 
reflect this reallocation of FTEs.
2. FTEs Associated With Numbering Issues
    19. In the FY 2017 NPRM, we estimated that seven to eight FTEs in 
the Wireline Competition Bureau work on numbering issues.\63\ We 
proposed to reallocate for regulatory fee purposes four of these direct 
FTEs from the Wireline Competition Bureau to the Wireless 
Telecommunications Bureau ``to take into account factors that are 
reasonably related to the benefits provided to the payor of the fee by 
the Commission's activities . . . .'' \64\ Specifically, we estimated 
approximately half of the benefit of the work of these FTEs accrue to 
Wireless Telecommunications Bureau regulatees.\65\ Commenters agree 
with our proposal to reallocate four of the Wireline Competition Bureau 
FTEs that work on numbering issues to the Wireless Telecommunications 
Bureau as direct FTEs for regulatory fee purposes.\66\
---------------------------------------------------------------------------

    \63\ FY 2017 NPRM, 32 FCC Rcd at 4530, para. 13; 82 FR 26019.
    \64\ 47 U.S.C. 159(b)(1)(A).
    \65\ See Industry Analysis and Technology Division, Wireline 
Competition Bureau, FCC, Voice Telephone Services: Status as of 
December 31, 2015, at 2 Figure 1 (2016).
    \66\ ITTA Comments at 9-10; CenturyLink Comments at 5 & Reply 
Comments at 5; Frontier Comments at 5-6.
---------------------------------------------------------------------------

    20. After reviewing the record, we conclude that reallocating four 
FTEs in the Wireline Competition Bureau assigned to work on numbering 
issues to the Wireless Telecommunications Bureau for regulatory fee 
purposes is warranted and consistent with section 9 of the Act. 
Reallocating four direct FTEs from the Wireline Competition Bureau to 
the Wireless Telecommunications Bureau will ``take into account factors 
that are reasonably related to the benefits provided to the payor of 
the fee by the Commission's activities'' \67\ because approximately 
half of the benefit of the work of these FTEs accrue to Wireless 
Telecommunications Bureau regulatees.\68\ We therefore adopt our 
proposal to reallocate for regulatory fee purposes four direct FTEs 
from the Wireline Competition Bureau to the Wireless Telecommunications 
Bureau. The regulatory fee rates set forth in Appendix C reflect this 
reallocation of FTEs.
---------------------------------------------------------------------------

    \67\ 47 U.S.C. 159(b)(1)(A).
    \68\ See Industry Analysis and Technology Division, Wireline 
Competition Bureau, FCC, Voice Telephone Services: Status as of 
December 31, 2015, at 2 Figure 1 (2016).
---------------------------------------------------------------------------

B. Direct Broadcast Satellite (DBS) Regulatory Fees

    21. 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. The two DBS 
providers, AT&T \69\ and DISH Network, are MVPDs.\70\ Following the 
2012 GAO Report, in which the GAO observed that an evaluation of Media 
Bureau FTEs was long overdue,\71\ the Commission concluded that the 
Media Bureau FTEs regulate the DBS industry together with the other 
MVPDs.\72\ Subsequently, the Commission adopted a regulatory fee for 
DBS as a subcategory in the cable television and IPTV category, of 12 
cents per year per subscriber.\73\ This regulatory fee subcategory was 
based on Media Bureau FTE activity involving regulation and oversight 
of all MVPDs, which included DBS providers.\74\
---------------------------------------------------------------------------

    \69\ AT&T and DIRECTV merged in 2015. See Applications of AT&T 
and DIRECTV for Consent to Assign or Transfer Control of Licenses 
and Authorizations, Memorandum Opinion and Order, 30 FCC Rcd 9131 
(2015).
    \70\ MVPD is defined in section 602(13) of the Act, 47 U.S.C. 
522(13). DBS subscribers were 33.2 percent of all MVPD subscribers 
at the end of 2015. See Annual Assessment of the Status of 
Competition in the Market for the Delivery of Video Programming, 
Eighteenth Report, 32 FCC Rcd 568, 575, para. 19 (2017) (Eighteenth 
Competition Report) (citing SNL Kagan, U.S. Multichannel Industry 
Benchmarks).
    \71\ GAO Report at 17-20.
    \72\ FY 2015 NPRM, 30 FCC Rcd at 5368, para. 32; 80 FR 37206.
    \73\ FY 2015 Report and Order, 30 FCC Rcd at 10276-77, paras. 
19-20; 80 FR 55775.
    \74\ FY 2015 NPRM, 30 FCC Rcd at 5367-68, para. 31; 80 FR 37206.
---------------------------------------------------------------------------

    22. As the Commission discussed in the FY 2015 NPRM, the DBS 
providers were established as large MVPDs by 2015 and significant Media 
Bureau FTE resources were used in regulation and oversight of all 
MVPDs, including DBS.\75\ The Commission concluded there was no 
reasonable basis to continue to exclude DBS providers from sharing in 
the cost of MVPD oversight and regulation with cable television and 
IPTV. In lieu of directly including DBS providers in the cable 
television/IPTV category at the same regulatory fee rate, the 
Commission elected to phase in the new Media Bureau-based regulatory 
fee for DBS, starting at 12 cents per subscriber, per year. Since then, 
the Commission has increased the DBS regulatory fee each year, to bring 
it closer to the per-subscriber rate paid by cable television and IPTV. 
In the FY 2016 regulatory fee proceeding, the Commission increased the 
regulatory fee for DBS providers to 24 cents, plus an across-the-board 
increase of three cents for the Commission's moving expenses, for a 
total of 27 cents per subscriber, per year.\76\ In the FY 2017 NPRM, 
the Commission noted that the Media Bureau resources focused on MVPD 
proceedings (including DBS) supported continuing to bring the DBS rate 
closer to the cable television/IPTV per subscriber rate.\77\ At that 
time, we proposed a regulatory fee rate of 36 cents per subscriber per 
year, plus two cents due to the increase in the Commission's budget for 
moving expenses, for a total of 38 cents per subscriber per year for FY 
2017.\78\ As we discuss below, we are adopting the proposed rate of 38 
cents per subscriber, per year in this Report and Order, in our effort 
to bring the DBS rate closer to the cable television/IPTV per 
subscriber rate.
---------------------------------------------------------------------------

    \75\ Id., 30 FCC Rcd at 5368, para. 32; 80 FR 37206.
    \76\ FY 2016 Report and Order, 31 FCC Rcd at 10348-49, para. 26; 
81 FR 65926.
    \77\ FY 2017 NPRM, 32 FCC Rcd at 4531-32, paras. 15-17; 82 FR 
26019.
    \78\ FY 2017 NPRM, 32 FCC Rcd at 4532, para. 17; 82 FR 26019.
---------------------------------------------------------------------------

    23. We agree with the commenters representing the cable television

[[Page 44327]]

industry that the Media Bureau resources utilized by the DBS providers 
are similar to those used by the cable television and IPTV 
industry,\79\ and for this reason we have been phasing in the 
regulatory fee for DBS providers each year. Commenters representing the 
cable television industry observe that despite the Commission's prior 
commitment to ensuring ``an appropriate level of regulatory parity with 
cable television and IPTV'' the proposed rate is far below the 96 cents 
proposed rate for cable television and IPTV.\80\ These commenters argue 
that there is no justification for this disparity, due to the fact that 
DBS operators impose regulatory costs and receive benefits from the 
Media Bureau that affect all MVPDs; \81\ that the proposed fees impose 
competitive and technological disparities, favoring DBS over cable 
television and IPTV; \82\ and that there is no evidence in the record 
to support the disparity in fees.\83\ The Media Bureau FTEs regulate 
the DBS industry together with the other MVPDs and the burden that DBS 
imposes on Media Bureau FTEs is roughly the same. For example, since 
October 1, 2016, the Media Bureau has opened 17 proceedings that affect 
MVPDs; seven of those proceedings are focused on cable operators, six 
are focused on DBS, and four cover all MVPDs (with three of those also 
covering other media services like broadcasters). Thus, these 
regulatees--MVPDs--are a group that includes DBS. In order to continue 
to bring the DBS fee closer to the cable television/IPTV fee, we are 
adopting the proposed rate of 38 cents per subscriber, which still 
remains substantially below the cable television/IPTV fee we adopt 
today.
---------------------------------------------------------------------------

    \79\ For example, as ACA observes, DBS providers have been 
actively involved in the Media Bureau's proceeding implementing the 
Satellite Television Extension and Localism Act Reauthorization Act 
of 2014 (STELAR) and in the market modification proceedings that 
STELAR directed the Commission to expand to satellite DBS carriage. 
The STELA Reauthorization Act of 2014 (STELAR), Pub. L. 113-200, 128 
Stat. 2059 (2014); 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 (80 
FR 59635, October 2, 2015) (adopting satellite television market 
modification rules). See, e.g., Gray Television Licensee, LLC, 
Petition for Modification of the Satellite Televisions Market for 
WSAW-TV, Wausau, Wisconsin, MB Docket No. 16-293, DirecTV, LLC 
Response to Petition for Special Relief (filed Oct. 6, 2016); 
Amendment to the Commission's Rules Concerning Market Modification, 
Implementation of Section 102 of the STELA Reauthorization Act of 
2014, MB Docket No. 15-71, DISH Network LLC Market Modification Pre-
Filing Coordination Letter for Monongalia County, West Virginia 
(filed May 23, 2017).
    AT&T and DISH have also been involved in the Commission's ATSC 
3.0 rulemaking. See, e.g., Authorizing Permissive Use of the ``Next 
Generation'' Broadcast Television Standard, GN Docket No. 16-142, 
Comments of DISH Network LLC (filed May 9, 2017); Reply Comments of 
AT&T (filed June 8, 2017). AT&T and DISH Network were also active 
participants in the Media Bureau's 2016 public notice proceeding. 
See, e.g., Media Bureau Seeks Comment on Joint Petition for 
Rulemaking of America's Public Television Stations, the AWARN 
Alliance, the Consumer Technology Association, and the National 
Association of Broadcasters Seeking to Authorize Permissive Use of 
the ``Next Generation TV'' Broadcast Television Standard, GN Docket 
No. 16-142, Comments of DISH Network, LLC (filed May 26, 2016); 
Comments of AT&T (filed May 26, 2016).
    \80\ ACA Comments at 2 (quoting FY 2017 NPRM, 32 FCC Rcd at 
4531, para. 15; 82 FR 26019); NCTA Comments at 3.
    \81\ ACA Comments at 3-6; NCTA Comments at 3-5.
    \82\ NCTA Comments at 5-7.
    \83\ NCTA Comments at 7-8.
---------------------------------------------------------------------------

    24. We reject the argument raised by DISH and AT&T, the two DBS 
providers, who contend that a fee increase would ``harm DBS 
customers.'' \84\ We do not accept the DISH and AT&T unsupported 
contention that a regulatory fee increase of several cents per 
subscriber, per month would ``harm'' their customers, as such an 
increase is a negligible fraction of a monthly bill.\85\
---------------------------------------------------------------------------

    \84\ DISH and AT&T Comments at 3.
    \85\ The current least expensive promotional rate for new DBS 
subscribers is approximately $50 per month for 12 months (not 
including taxes or leasing charges). Even if the regulatory fee were 
72 cents per subscriber per year, approximately what it would be at 
parity with cable television/IPTV, it would equal 0.12% of the 
lowest introductory monthly fee for DBS ($600 x .0012 = $0.72). See 
https://www.directv.com/DTVAPP/pepod/configure.jsp#package-section 
(last visited June 29, 2017); https://www.dish.com/programming/packages/ (last visited June 29, 2017). ACA observes that DISH's 
reported average revenue per unit was $86.79 per month and AT&T's 
was $118.00 per month. ACA Reply Comments at 2-3.
---------------------------------------------------------------------------

    25. AT&T and DISH also argue that several recent proceedings 
involving MVPDs do not justify an increase in regulatory fees.\86\ We 
disagree. The examples of recent proceedings involving MVPDs illustrate 
that Media Bureau FTEs work on significant MVPD issues that include 
DBS. DBS, cable television, and IPTV all receive oversight and 
regulation as a result of the work of Media Bureau FTEs on MVPD issues. 
This regulatory fee is not based on specific recent proceedings, but 
that a significant number of Media Bureau FTEs work on MVPD issues that 
include DBS.\87\ We listed examples of several recent proceedings to 
illustrate that the Media Bureau is involved in numerous MVPD 
issues.\88\ The fee increase we adopt today is not based on particular 
Media Bureau proceedings, but is an effort to bring the regulatory fee 
closer to the cable television/IPTV per subscriber fee.
---------------------------------------------------------------------------

    \86\ DISH and AT&T Comments at 4-5; AT&T Reply Comments at 6-7.
    \87\ FY 2015 Report and Order, 30 FCC Rcd at 5369, para. 33; 80 
FR 43019.
    \88\ See, e.g., Video Description: Implementation of the Twenty-
First Century Communications and Video Accessibility Act of 2010, 
Notice of Proposed Rulemaking, 31 FCC Rcd 2463 (81 FR 33642, May 27, 
2016); Expanding Consumers' Video Navigation Choices, Commercial 
Availability of Navigation Devices, Notice of Proposed Rulemaking 
and Memorandum Opinion and Order, 31 FCC Rcd 1544 (81 FR 14033, 
March 16, 2016); Promoting the Availability of Diverse and 
Independent Sources of Video Programming, Notice of Inquiry, 31 FCC 
Rcd 1610 (2016); 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); 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).
---------------------------------------------------------------------------

    26. AT&T and DISH contend that there is no evidence that DBS 
providers ``usurped the work of such a significant amount of Media 
Bureau FTEs sufficient to justify this increase.'' \89\ The DBS 
commenters are misunderstanding the basis for including DBS in the 
cable television/IPTV regulatory fee.\90\ The Commission has never said 
that the DBS industry ``usurped the work'' of the Media Bureau staff. 
The regulatory fee is based on the fact that Media Bureau staff work on 
significant issues involving MVPDs, including DBS. The DBS regulatory 
fee is based on the Media Bureau's regulation and oversight of the MVPD 
industry (including DBS), not on a particular number of FTEs focused 
solely on DBS. The Commission has specifically rejected the argument 
that section 9 of the Act requires us to ``show that DBS and cable 
occupy a comparable number of FTEs.'' \91\
---------------------------------------------------------------------------

    \89\ DISH and AT&T Comments at 5-6. We also do not agree with 
AT&T's argument that we have ignored the other regulatory fees paid 
by the DBS providers. AT&T Reply Comments at 7. The regulatory fee 
based on the Media Bureau FTEs is not related to the regulatory fee 
based on International Bureau FTEs. While there is no other industry 
in the same situation as DBS, we note that the cable television 
industry pays regulatory fees for CARs licenses.
    \90\ ACA observes, ``the DBS providers misconceive the nature of 
the Commission's fee setting exercise, as it is not required to 
calculate fee levels with scientific precision.'' See ACA Reply 
Comments at 6.
    \91\ FY 2015 Report and Order, 30 FCC Rcd at 5369, para. 33; 80 
FR 43019.
---------------------------------------------------------------------------

    27. Finally, AT&T and DISH contend that there is no legal basis to 
charge DBS providers the same regulatory fees as cable television and 
IPTV operators.\92\ We disagree. We recognize that DBS is not identical 
to cable television and IPTV. Services that are not technologically 
identical nevertheless warrant placement in the same regulatory fee 
category, e.g., ITSP includes a range of carriers that may not be 
regulated identically but must pay

[[Page 44328]]

fees on the same basis.\93\ When interconnected Voice over Internet 
Protocol (VoIP) providers were added to the ITSP category in a 
permitted amendment the Commission observed that ``the costs and 
benefits associated with our regulation of interconnected VoIP 
providers are not identical as those associated with regulating 
interstate telecommunications service and CMRS.'' \94\ Indeed, IPTV is 
not regulated in all the same ways as cable television, and yet the 
Commission requires them to pay fees on the same basis.\95\ We 
recognize that DBS is not identical to cable, but the Media Bureau FTEs 
work on MVPD issues that include DBS. Although DBS is not identical to 
cable television and IPTV, the services all receive oversight and 
regulation as a result of the work of Media Bureau FTEs on MVPD issues, 
and the burden imposed on the Commission is similar.
---------------------------------------------------------------------------

    \92\ DISH and AT&T Comments at 7-8.
    \93\ ITSP, regulated by the Wireline Competition Bureau, 
includes interexchange carriers (IXCs), incumbent local exchange 
carriers (LECs), toll resellers, Voice over Internet Providers 
(VoIP), and other service providers, all of which involve different 
degrees of regulatory oversight.
    \94\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2007, Report and Order and Further Notice of Proposed 
Rulemaking, 22 FCC Rcd 15712, 15719, para. 19 (2007) (FY 2007 Report 
and Order); 72 FR 45908, August 16, 2007.
    \95\ FY 2013 Report and Order, 28 FCC Rcd at 12362, para. 32 
(``IPTV providers should be subject to the same regulatory fee as 
cable providers.''); 78 FR 52433.
---------------------------------------------------------------------------

    28. After considering the comments filed in this proceeding, we 
conclude that moving the DBS rate is supported by the data and 
analysis, and therefore adopt a regulatory fee rate of 38 cents, per 
subscriber, per year for FY 2017.

C. Radio Broadcaster Regulatory Fees

    29. In the FY 2017 NPRM, the Commission proposed to revise the 
table for AM and FM broadcasters.\96\ The proposed table had revised 
ratios so that the difference between each tier would be proportional. 
We also sought comment on whether the regulatory fees should be reduced 
further for the AM and FM broadcasters in the two lowest tiers.
---------------------------------------------------------------------------

    \96\ FY 2017 NPRM, 32 FCC Rcd at 4533, para. 19; 82 FR 26019.
---------------------------------------------------------------------------

    30. We received two comments on this issue. CRC, an AM station 
licensee, contends that the proposed fees for AM stations are too 
high.\97\ CRC observes that small AM stations must compete against FM 
stations and other media and they generate significantly less revenue 
than FM stations.\98\ CRC argues that the economic disparities between 
AM and FM facilities should be reflected in the regulatory fee 
schedules, particularly in the top tiers where the disparity in 
revenues is much greater than in the smaller markets.\99\ Arso contends 
that the FY 2017 NPRM does not go far enough in alleviating the 
hardship imposed on small broadcasters and urges the Commission to 
adopt a fast track waiver process for stations in economically 
depressed areas, such as Puerto Rico.\100\
---------------------------------------------------------------------------

    \97\ CRC Comments at 1.
    \98\ CRC Comments at 1.
    \99\ CRC Comments at 2.
    \100\ Arso Comments at 1-2.
---------------------------------------------------------------------------

    31. We agree with the commenters that small independent 
broadcasters face hardship today. As the Commission explained in the FY 
2016 Report and Order, ``[e]xtending some relief to these small radio 
broadcasters may facilitate their continued ability to stay in business 
and serve their small and rural communities.'' \101\ After reviewing 
the record, and due to the economic hardship faced by many small rural 
independent radio stations, we are adopting a revised version of the 
proposed table in the FY 2017 NPRM and reducing the regulatory fees in 
the two lowest population tiers for AM and FM broadcasters from the 
amounts proposed. In FY 2018, we will again review the status of these 
small radio broadcast stations to see if further relief is warranted. 
Below is the table we adopt today:
---------------------------------------------------------------------------

    \101\ FY 2016 Report and Order, 31 FCC Rcd at 10351, para. 33; 
81 FR 65926.

                                                     Table 1--FY 2017 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          FY 2017 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................................................            $895            $640            $555            $610            $980          $1,100
25,001-75,000...........................................           1,350             955             830             915           1,475           1,650
75,001-150,000..........................................           2,375           1,700           1,475           1,600           2,600           2,925
150,001-500,000.........................................           3,550           2,525           2,200           2,425           3,875           4,400
500,001-1,200,000.......................................           5,325           3,800           3,300           3,625           5,825           6,575
1,200,001-3,000,00......................................           7,975           5,700           4,950           5,425           8,750           9,875
3,000,001-6,000,00......................................          11,950           8,550           7,400           8,150          13,100          14,800
>6,000,000..............................................          17,950          12,825          11,100          12,225          19,650          22,225
--------------------------------------------------------------------------------------------------------------------------------------------------------

D. Broadcast Television Satellite

    32. Broadcast television satellite stations pay a lower regulatory 
fee than standalone full service broadcast television stations, and 
some of these stations are designated as such pursuant to note 5 to 
Sec.  73.3555 of the Commission's rules.\102\ For purposes of 
regulatory fees, we historically have identified as satellite stations 
those so listed in the Media Bureau's Consolidated Data Base System 
(CDBS), the Television and Cable Factbook, or BIA/Kelsey MEDIA Access 
Pro.\103\ In the FY 2017 NPRM, the Commission sought comment on basing 
the categorization of television satellite stations for regulatory fee 
payments on authorization under note 5 of Sec.  73.3555 of the 
Commission's rules, and noted that the Television and Cable Factbook 
may identify some stations as satellite stations that are not listed in 
the Media Bureau's records.\104\ We received limited comments on the 
issue and do not have adequate support to change the methodology for 
determining which stations are satellites at this time. We recognize 
that regulatees rely on consistency of treatment. Therefore, for FY 
2017 regulatory fees we treat broadcast television satellite stations 
as satellite stations that are listed as such in CDBS, the 2017 
Television and Cable Factbook, or BIA/Kelsey MEDIA Access Pro, or paid 
regulatory fees as a satellite

[[Page 44329]]

station in FY 2016.\105\ In the future, we intend to continue examining 
the appropriate methodology for categorizing when a station should only 
be assessed regulatory fees at the satellite station level. In doing 
so, as with other fee reforms, the Commission will work to ensure that 
any proposed changes to our fee structure are equitable, administrable, 
and sustainable.\106\
---------------------------------------------------------------------------

    \102\ FY 2017 NPRM, 31 FCC Rcd at 4534, para. 20; 82 FR 26019.
    \103\ Id., FY 2017 NPRM, 31 FCC Rcd at 4535, para. 21; 82 FR 
26019.
    \104\ Id., FY 2017 NPRM, 31 FCC Rcd at 4535, para. 20; 82 FR 
26019.
    \105\ For purposes of determining whether a licensee qualifies 
as a satellite station for regulatory fee purposes, it must be so 
characterized in one of these sources as of the date of the Report 
and Order.
    \106\ See FY 2013 NPRM, 28 FCC Rcd at 7798-7807, paras. 17-40; 
78 FR 34612.
---------------------------------------------------------------------------

E. Submarine Cable Regulatory Fees

    33. The Coalition, a group of submarine cable operators, objects to 
the proposed FY 2017 regulatory fees for the submarine cable industry, 
observing that the total amount the Commission is collecting for FY 
2017 ($356,710,992) is less than the amount collected for FY 2016 
($384,012,497, of which $44,168,497 was to offset facilities reduction 
costs), yet the regulatory fee for the highest tier submarine cable 
system was $133,200 for FY 2016 and the rate proposed for FY 2017, for 
the highest tier, is $135,700.\107\ The Coalition states that the FY 
2017 NPRM does not adequately justify the proposed increase in fees for 
submarine cable systems.\108\ The Coalition argues that the FY 2016 
rate included a one-time facilities reduction charge and the FY 2017 
rate should be less than the FY 2016 rate because the number of payment 
units are the same.\109\ The Coalition contends that the Commission is 
subsidizing unrelated activities to the detriment of the submarine 
cable operators.\110\
---------------------------------------------------------------------------

    \107\ Coalition Comments at 3.
    \108\ Coalition Comments at 3.
    \109\ Coalition Comments at 5-6.
    \110\ Coalition Comments at 8.
---------------------------------------------------------------------------

    34. We disagree with the Coalition's argument. The increase in 
regulatory fee rates for the International Bureau regulatees is due to 
the reallocation of 38 Wireline Competition Bureau direct FTEs as 
indirect in FY 2017, as discussed above. Although the amount collected 
overall is less in FY 2017 than in FY 2016, the allocation percentage 
of regulatory fees for the International Bureau increased from 5.6 
percent in FY 2016 \111\ to 6.22 percent for FY 2017,\112\ due to the 
increase in indirect FTEs. We also note that the regulatory fees paid 
by the submarine cable operators cover, in addition to the services 
that the International Bureau provides to submarine cable operators, 
the services provided to common carriers using submarine cable 
circuits.\113\ The International Bureau provides many services on 
behalf of common carriers using submarine cable circuits, such as 
benchmarks enforcement,\114\ protection from anticompetitive actions by 
foreign carriers, section 310(b) foreign ownership rulings, 
international section 214 authorizations, and representation of U.S. 
interests at bilateral and multilateral negotiations and international 
organizations.\115\ After reviewing the record, including the comments 
from the submarine cable industry, we are adopting the fee proposed in 
the FY 2017 NPRM for submarine cable systems.
---------------------------------------------------------------------------

    \111\ FY 2016 Report and Order, 31 FCC Rcd at 10347-350, para. 
6; 81 FR 65926.
    \112\ FY 2017 NPRM, 32 FCC Rcd at 4529, para. 8; 82 FR 26019.
    \113\ See FY 2015 Report and Order, 30 FCC Rcd 10273, para. 12; 
80 FR 55775.
    \114\ See, e.g., International Settlement Rates, IB Docket No. 
96-261, Report and Order, 12 FCC Rcd 19806 (62 FR 45758, August 29, 
1997), Report and Order on Reconsideration and Order Lifting Stay, 
14 FCC Rcd 9256 (64 FR 47699, September 1, 1999), aff'd sub nom. 
Cable & Wireless, 166 F.3d 1224.
    \115\ See FY 2015 Report and Order, 30 FCC Rcd 10273, para. 12; 
80 FR 55775.
---------------------------------------------------------------------------

F. International Bearer Circuits

    35. In 2009,\116\ the Commission adopted a new methodology for 
calculating submarine cable international bearer circuits regulatory 
fees by: (i) Eliminating the distinction between common carriers and 
non-common carriers \117\ and (ii) assessing a flat per cable landing 
license fee \118\ for all submarine cable systems with higher fees for 
larger submarine cable systems and lower fees for smaller systems.\119\ 
The Commission concluded that the new methodology would be more 
equitable and would encourage better compliance with the regulatory fee 
requirements.\120\ The Commission did not revise the terrestrial and 
satellite IBC regulatory fee methodology at that time because of the 
``complexity of the legal, policy and equity issues involved.'' \121\
---------------------------------------------------------------------------

    \116\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2008, Second Report and Order, 24 FCC Rcd 4208, 4214-16, paras. 
13-17 (2009) (Submarine Cable Order); 74 FR 22104, (May 12, 2009).
    \117\ Submarine Cable Order, 24 FCC Rcd at 4213, para. 9; 74 FR 
22104, 22106.
    \118\ The prior rule assessed regulatory fees based on the 
number of active circuits on the previous December 31.
    \119\ Submarine Cable Order, 24 FCC Rcd at 4214-16, paras. 13-
17; 74 FR 22104, 22107-8.
    \120\ Id., Submarine Cable Order, 24 FCC Rcd at 4208-4209, para. 
1; 74 FR 22104.
    \121\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2009, Report and Order, 24 FCC Rcd 10301, 10306-07, paras. 16-
17 (2009); 74 FR 40089.
---------------------------------------------------------------------------

    36. In the FY 2016 NPRM, the Commission revisited the disparate 
treatment of terrestrial and satellite IBCs vis-[agrave]-vis submarine 
IBCs,\122\ but subsequently decided that the record was insufficient to 
change the fee methodology.\123\ In the FY 2017 NPRM, the Commission 
again sought comment on how to update and improve the regulatory fee 
assessment for terrestrial and satellite IBCs. Specifically, the 
Commission sought comment on several issues raised by Level 3:\124\ 
Adopting a flat, per-provider fee, similar to the submarine cable 
regulatory fee methodology, based on capacity \125\ and including all 
terrestrial IBCs, i.e., both common carrier and non-common carrier, for 
regulatory fee purposes.\126\ We also sought comment on eliminating the 
IBC regulatory fee for satellite IBCs and whether we should continue to 
assess regulatory fees based on IBCs that were active as of December 31 
of the prior year.\127\
---------------------------------------------------------------------------

    \122\ FY 2016 NPRM, 31 FCC Rcd at 5764-65, paras. 15-16; 81 FR 
35680.
    \123\ FY 2016 Report and Order, 31 FCC Rcd at 10343, para. 11; 
81 FR 65926. Level 3 had initially proposed the flat fee 
methodology, for common carrier and non-common carrier providers, 
assessed based on the total capacity in Gbps. See Level 3 Comments, 
filed in MD Docket No. 16-166 (filed June 23, 2016), at 3-5.
    \124\ Level 3 Comments, filed in MD Docket No. 16-166 (filed 
June 23, 2016).
    \125\ The submarine cable fee is based on capacity per system; 
the proposed terrestrial and satellite fee would be based on overall 
capacity, but not on a per system basis.
    \126\ FY 2017 NPRM, 32 FCC Rcd at 4536-38, paras. 23-27; 82 FR 
26019.
    \127\ 47 CFR 43.62(a)(1). Commenters support continuing to 
assess regulatory fees based on IBCs that were active as of December 
31 of the prior year and we see no reason to change this methodology 
at this time.
---------------------------------------------------------------------------

1. Including Non-Common Carrier IBCs
    37. We agree with the commenters, Level 3 and AT&T, that a 
methodology for terrestrial and satellite IBC regulatory fees based on 
circuits should be consistent with the submarine cable methodology and 
include common carrier and non-common carrier terrestrial IBCs. Level 3 
explains that including non-common carrier IBCs will ``eliminate a 
major incentive and opportunity providers currently have to underreport 
the number of IBCs they have in service.'' \128\ As AT&T observes, such 
an approach treats all terrestrial IBC providers equitably and reduces 
fees by increasing the payment units.\129\ For these reasons, we find 
no reason to continue excluding non-common carrier terrestrial IBCs 
from regulatory fees and adopt our proposal to include both common 
carrier and non-common carrier terrestrial IBCs, consistent with

[[Page 44330]]

the submarine cable regulatory fee methodology.
---------------------------------------------------------------------------

    \128\ Level 3 June 29, 2017 ex parte at 1.
    \129\ AT&T Comments at 2 & Reply Comments at 1.
---------------------------------------------------------------------------

    38. Adding non-common carrier terrestrial IBCs to the regulatory 
fee schedule is a permitted amendment, as defined in section 9(b)(3) of 
the Act,\130\ and pursuant to section 9(b)(4)(B),\131\ must be 
submitted to Congress at least 90 days before it will be effective. For 
that reason, this new fee will be included in the regulatory fee 
proceeding for FY 2018.
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    \130\ 47 U.S.C. 159(b)(3).
    \131\ 47 U.S.C. 159(b)(4)(B).
---------------------------------------------------------------------------

2. Satellite IBCs
    39. In the FY 2017 NPRM, we sought comment on whether to eliminate 
the IBC regulatory fee for satellite providers of IBCs.\132\ SIA 
contends that the fee should be eliminated because it does not 
correspond with substantive work by the Commission and is overly 
burdensome for satellite operators to calculate.\133\ According to SIA, 
calculating the number of circuits takes at least ten hours for in-
house counsel and additional personnel in other departments are 
responsible for collecting data for this calculation.\134\ The flat fee 
methodology for terrestrial and satellite IBCs should significantly 
reduce any burden of collecting data described by SIA. After reviewing 
the record, we do not see any reason to eliminate this fee category. 
Instead, we are moving toward a more consistent regulatory fee 
methodology for all IBCs and a less burdensome process for all 
regulatees.
---------------------------------------------------------------------------

    \132\ FY 2017 NPRM, 32 FCC Rcd at 4537-38, para. 26; 82 FR 
26019.
    \133\ SIA Comments at 4-5.
    \134\ SIA Comments at 5, note 18.
---------------------------------------------------------------------------

3. Fee Based on Circuits as of December 31
    40. In the FY 2017 NPRM, we sought comment on whether to assess the 
number of active circuits on systems active as of December 31 of the 
prior year or assess fees on IBCs that were active at any point during 
the preceding calendar year.\135\ Level 3 and AT&T argue that the 
Commission should continue to assess regulatory fees based on IBCs that 
were active as of December 31 of the prior year because it is 
significantly less burdensome for carriers to identify circuits that 
are active at a fixed point in time as opposed to at any point during 
the preceding year.\136\ We agree that the burdens associated with 
requiring providers to count the number of active circuits at any point 
during the preceding year does not outweigh the benefits. Therefore, we 
will retain the current requirement of assessing fees on systems active 
as of December 31 of the prior year.
---------------------------------------------------------------------------

    \135\ FY 2017 NPRM, 32 FCC Rcd at 4538, para. 26; 82 FR 26019.
    \136\ Level 3 Comments at 2; AT&T Reply Comments at 5-6.
---------------------------------------------------------------------------

G. Increasing the De Minimis Threshold

    41. Under the Commission's current de minimis rule for regulatory 
fee payments, a regulatee is exempt from paying regulatory fees if the 
sum total of all of its regulatory fee liabilities for annual 
regulatory fees is $500 or less for the fiscal year.\137\ The 
Commission increased the de minimis threshold from $10 to $500 in the 
FY 2014 Report and Order.\138\ The higher threshold reflected the 
estimated costs of collecting an unpaid regulatory fee, i.e., at least 
$350 in direct costs. The Commission's estimate of approximately $350 
per unpaid fee excluded overhead or other costs involved in regulatory 
fee collection.\139\ In addition, the Commission observed that setting 
the de minimis threshold at $500 was unlikely to reduce fee collections 
to an amount below the full amount of the Commission's annual 
appropriation.\140\
---------------------------------------------------------------------------

    \137\ FY 2014 Report and Order, 29 FCC Rcd at 10774-76, para. 
18-21; 79 FR 54190.
    \138\ Id.
    \139\ Id., FY 2014 Report and Order, 29 FCC Rcd at 10775, para. 
20 & n. 62; 79 FR 54190.
    \140\ Id.
---------------------------------------------------------------------------

    42. In the FY 2014 regulatory fee proceeding, commenters had argued 
the threshold should be increased to $750 or $1,000.\141\ In response, 
the Commission adopted a new threshold of $500 for annual regulatory 
fee and committed to further monitor the de minimis threshold and 
consider whether to increase the threshold or revise on some other 
basis.\142\ In the FY 2017 NPRM, we sought comment on increasing the de 
minimis threshold to $1,000 to improve the cost effectiveness of the 
Commission's collection of regulatory fees.\143\ Commenters support an 
increase in the de minimis threshold.\144\
---------------------------------------------------------------------------

    \141\ Id.
    \142\ Id., FY 2014 Report and Order, 29 FCC Rcd at 10775, para. 
20; 79 FR 54190.
    \143\ Id. (observing that many small entities ``are subject to 
little Commission oversight and regulation which serves to further 
exacerbate this inequity [of the administrative burden].'').
    \144\ ACA Comments at 7-10; CMA Comments at 4; EWA Comments at 
2; NAB Comments at 1-2; Romar Reply Comments at 2-3.
---------------------------------------------------------------------------

    43. In general, we believe the Commission's operational costs 
associated with processing and collecting these smaller fees, outweigh 
the benefits of such payments. For example, payors between $500 and 
$1,000 account for less than one percent of all regulatory fee 
payments. And yet processing and collecting these fees generates a 
disproportionate amount of work for Commission staff. Specifically, the 
cost of researching, creating a bill to send to a non-payor, and 
completing all follow-up discussion and correspondence has increased 
since 2014's $350 estimate, and that does not even include the cost of 
overhead and administering the regulatory fee program.\145\ The 
Commission has found that smaller entities with regulatory fees that 
fall within this range are less likely to pay on a timely basis and 
consequently use more Commission resources for fee collection.\146\ 
Nonpayment by these small entities then often results in the escalation 
of the Commission's administrative costs and a disproportionate use of 
FTE resources. As such, the marginal benefit to Commission operations 
of assessing, billing, and collecting regulatory fees on regulatees 
that would owe less than $1,000 is minute. In addition, setting the 
threshold at $1,000 is unlikely to reduce fee collections to an amount 
below the full amount of the Commission's annual appropriation because 
the additional amount that would no longer be collected is relatively 
small. We conclude that raising the de minimis threshold to $1,000 is 
justified by reducing the Commission's cost in collection of regulatory 
fees, thus allowing a more efficient allocation of Commission 
resources.
---------------------------------------------------------------------------

    \145\ Id.
    \146\ Id.
---------------------------------------------------------------------------

    44. We also sought comment on whether we should include multi-year 
wireless licenses in the de minimis threshold. EWA explains, and we 
agree, that it would be difficult to administer a de minimis threshold 
for multi-year licenses.\147\ ACA proposes that we adopt a de minimis 
threshold for small cable and IPTV operators of 1000 or fewer 
subscribers.\148\ After analyzing this issue we conclude that it would 
be administratively difficult to have both a per subscriber de minimis 
threshold and a $1000 de minimis threshold at the same time. Many cable 
operators also have CARS licenses and offer other services, such as 
VoIP, and it would be difficult to calculate if they exceed the de 
minimis threshold with two different thresholds.
---------------------------------------------------------------------------

    \147\ EWA Comments at 2-4.
    \148\ ACA Comments at 9 (explaining that the small operators may 
also provide VoIP services and may not be de minimis under the $1000 
threshold proposed).
---------------------------------------------------------------------------

    45. Accordingly, the de minimis threshold we adopt today applies 
only to filers of annual regulatory fees for FY

[[Page 44331]]

2017 and not multi-year filings.\149\ This de minimis exemption from 
the payment of regulatory fees applies to the sum of all annual 
regulatory fee obligations that a regulatee has for all applicable fee 
categories; not to individual payments for each category separately. 
The Commission will implement the de minimis threshold of $1,000 
beginning immediately. The de minimis status is not a permanent 
exemption from regulatory fees. Rather, each regulatee will need to 
reevaluate annually to determine whether its total liability for annual 
regulatory fees falls at or below the threshold given any changes that 
the Commission may make in its regulatory fees from year to year.
---------------------------------------------------------------------------

    \149\ See FY 2014 Report and Order, 29 FCC Rcd at 10775, para. 
21 (explaining how to calculate the regulatory fee total to 
determine if it is below the de minimis threshold); 79 FR 54190.
---------------------------------------------------------------------------

V. Procedural Matters

A. Payment of Regulatory Fees

1. Checks Will Not Be Accepted for Payment of Annual Regulatory Fees
    46. Pursuant to an Office of Management and Budget (OMB) 
directive,\150\ the Commission is moving towards a paperless 
environment, extending to disbursement and collection of select federal 
government payments and receipts.\151\ In 2015, the Commission stopped 
accepting checks (including cashier's checks and money orders) and the 
accompanying hardcopy forms (e.g., Forms 159, 159-B, 159-E, 159-W) for 
the payment of regulatory fees.\152\ All regulatory fee payments must 
be made by online Automated Clearing House (ACH) payment, online credit 
card, or wire transfer. Any other form of payment (e.g., checks, 
cashier's checks, or money orders) will be rejected. For payments by 
wire, a Form 159-E should still be transmitted via fax so that the 
Commission can associate the wire payment with the correct regulatory 
fee information.
---------------------------------------------------------------------------

    \150\ 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.
    \151\ See U.S. Department of the Treasury, Open Government Plan 
2.1, Sept. 2012.
    \152\ FY 2015 Report and Order, 30 FCC Rcd at 10282-83, para. 
35; 80 FR 55775.
---------------------------------------------------------------------------

2. Credit Card Transaction Levels
    47. 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.\153\ 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.
---------------------------------------------------------------------------

    \153\ 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
    48. During the fee season for collecting FY 2017 regulatory fees, 
regulatees can pay their fees by credit card through Pay.gov,\154\ ACH, 
debit card,\155\ 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://transition.fcc.gov/fees/wiretran.html.
---------------------------------------------------------------------------

    \154\ 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.
    \155\ 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
    49. Regulatees whose total FY 2017 annual regulatory fee liability, 
including all categories of fees for which payment is due, is $1,000 or 
less are exempt from payment of FY 2017 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
    50. 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, 2016 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, 2016.
     Wireline (Common Carrier) Services: Regulatory fees must 
be paid for authorizations that were granted on or before October 1, 
2016. In instances where a permit or license is transferred or assigned 
after October 1, 2016, 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.\156\ For Responsible 
Organizations (RespOrgs) that manage Toll Free Numbers (TFN), 
regulatory fees should be paid on all working, assigned, and reserved 
toll free numbers, as well as toll free numbers that are in any other 
status as defined in Sec.  52.103 of the Commission's rules.\157\ The 
unit count should be based on toll free numbers managed by RespOrgs on 
or about December 31, 2016.
---------------------------------------------------------------------------

    \156\ Audio bridging services are toll teleconferencing 
services.
    \157\ 47 CFR 52.103.
---------------------------------------------------------------------------

     Wireless Services: CMRS cellular, mobile, and messaging 
services (fees based on number of subscribers or telephone number 
count): Regulatory fees must be paid for authorizations that were 
granted on or before October 1, 2016. The number of subscribers, units, 
or telephone numbers on December 31, 2016 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, 2016, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.

[[Page 44332]]

     Wireless Services, Multi-year fees: The first eight 
regulatory fee categories in our Schedule of Regulatory Fees in Table 4 
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 to 
publicize our estimates of the number of ``small multi-year wireless'' 
licenses that will be renewed or newly obtained in FY 2017.
     Multichannel Video Programming Distributor Services (cable 
television operators, CARS licensees, DBS, and IPTV): Regulatory fees 
must be paid for the number of basic cable television subscribers as of 
December 31, 2016.\158\ Regulatory fees also must be paid for CARS 
licenses that were granted on or before October 1, 2016. In instances 
where a permit or license is transferred or assigned after October 1, 
2016, responsibility for payment rests with the holder of the permit or 
license as of the fee due date. For providers of DBS service and IPTV-
based MVPDs, regulatory fees should be paid based on a subscriber count 
on or about December 31, 2016. In instances where a permit or license 
is transferred or assigned after October 31, 2016, responsibility for 
payment rests with the holder of the permit or license as of the due 
date.
---------------------------------------------------------------------------

    \158\ 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 2016, rather than on a count as of December 31, 
2016.
---------------------------------------------------------------------------

     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, 2016. In instances where a permit 
or license is transferred or assigned after October 1, 2016, 
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, 2016. In instances where a license is transferred or assigned after 
October 1, 2016, responsibility for payment rests with the holder of 
the license as of the fee due date. For regulatory fee purposes, the 
allocation in FY 2017 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, 2016 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, 
2016. Whether circuits are used specifically for voice or data is not 
relevant for purposes of determining that they are active 
circuits.\159\ In instances where a permit or license is transferred or 
assigned after October 1, 2016, 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 2017 will remain at 87.6 
percent for submarine cable and 12.4 percent for satellite/terrestrial 
facilities.\160\
---------------------------------------------------------------------------

    \159\ We encourage terrestrial and satellite service providers 
to seek guidance from the International Bureau's Telecommunications 
and Analysis Division to verify their IBC reporting processes to 
ensure that their calculation methods comply with our rules.
    \160\ 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

    51. 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'').\161\ 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).
---------------------------------------------------------------------------

    \161\ See FY 2005 Report and Order, 20 FCC Rcd at 12264, paras. 
38-44; 70 FR 41967.
---------------------------------------------------------------------------

    52. 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.\162\ 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.
---------------------------------------------------------------------------

    \162\ 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.
---------------------------------------------------------------------------

    53. 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, 2016), 
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

    54. 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

[[Page 44333]]

first day following the deadline for filing these fees.\163\ Failure to 
pay regulatory fees and/or any late penalty will subject regulatees to 
sanctions, including those set forth in Sec.  1.1910 of the 
Commission's rules,\164\ 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.\165\ We also assess 
administrative processing charges on delinquent debts to recover 
additional costs incurred in processing and handling the debt pursuant 
to the DCIA and Sec.  1.1940(d) of the Commission's rules.\166\ 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.
---------------------------------------------------------------------------

    \163\ 47 U.S.C. 159(c).
    \164\ See 47 CFR 1.1910.
    \165\ 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 (69 FR 27843, May 17, 2004); 47 CFR part 1, 
subpart O, Collection of Claims Owed the United States.
    \166\ 47 CFR 1.1940(d).
---------------------------------------------------------------------------

    55. 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.\167\ 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).\168\ 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.
---------------------------------------------------------------------------

    \167\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
    \168\ 47 U.S.C. 159.
---------------------------------------------------------------------------

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

    56. 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.\169\ 
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.
---------------------------------------------------------------------------

    \169\ See 31 U.S.C. 3711(g); 31 CFR 285.12; 47 CFR 1.1917.
---------------------------------------------------------------------------

E. Effective Date

    57. 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 2017 fees 
before FY 2017 ends on September 30, 2017. 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--Commenters--Initial Comments

------------------------------------------------------------------------
             Commenter                          Abbreviation
------------------------------------------------------------------------
American Cable Association........  ACA.
Arso Radio Corporation............  Arso.
AT&T Services, Inc................  AT&T.
CenturyLink, Inc..................  CenturyLink.
CRC Broadcasting Company, Inc.....  CRC.
Critical Messaging Association....  CMA.
DISH Network, L.L.C. and AT&T       DISH and AT&T.
 Services, Inc.
Enterprise Wireless Alliance......  EWA.
Frontier Communications             Frontier.
 Corporation.
ITTA--The Voice of America's        ITTA.
 Broadband Providers.
Level 3 Communications, LLC.......  Level 3.
National Association of             NAB.
 Broadcasters.
NCTA--The Internet and Television   NCTA.
 Association.
Quincy Media, Inc.................  QMI.
Ramar Communications, Inc.........  Ramar.
Satellite Industry Association....  SIA.
Submarine Cable Coalition.........  Coalition.
------------------------------------------------------------------------
                       Commenters--Reply Comments
------------------------------------------------------------------------
American Cable Association........  ACA.
AT&T Services, Inc................  AT&T.
CenturyLink, Inc..................  CenturyLink.
CTIA[supreg]......................  CTIA.
Level 3 Communications, LLC.......  Level 3.

[[Page 44334]]

 
Romar Communications, Inc.........  Romar.
------------------------------------------------------------------------
     Commenter and date filed                   Abbreviation
------------------------------------------------------------------------
                            Ex Parte Filings
------------------------------------------------------------------------
American Cable Association (Aug.    ACA.
 30, 2017).
AT&T Services, Inc. (July 27,       AT&T.
 2017).
DISH Network, L.L.C. (Aug. 22,      DISH.
 2017).
Level 3 Communications, LLC (June   Level 3.
 29, July 24, 2017).
Ramar Communications, Inc. (July    Ramar.
 21, Aug. 15, 21, 22, 2017).
------------------------------------------------------------------------

    Regulatory fees in the top seven fee categories are collected by 
the Commission in advance to cover the term of the license and are 
submitted at the time the application is filed.

Table 3--Calculation of FY 2017 Revenue Requirements and Pro-Rata Fees

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Pro-rated   Computed FY
                                                           FY 2017 payment                 FY 2016      FY 2017        2017     Rounded  FY    Expected
                      Fee category                              units           Yrs        revenue      revenue     regulatory   2017  Reg.    FY 2017
                                                                                           estimate   requirement      fee          fee        revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)...................................             1,300           10      625,000      325,000           25           25      325,000
PLMRS (Shared use)......................................            16,000           10    3,110,000    1,600,000           10           10    1,600,000
Microwave...............................................            11,800           10    3,125,000    2,950,000           25           25    2,950,000
Marine (Ship)...........................................             8,100           10    1,035,000    1,215,000           15           15    1,215,000
Aviation (Aircraft).....................................             4,200           10      470,000      420,000           10           10      420,000
Marine (Coast)..........................................               150           10      192,500       60,000           40           40       60,000
Aviation (Ground).......................................             1,100           10      220,000      220,000           20           20      220,000
AM Class A \4\..........................................                65            1      313,500      305,500        4,699        4,700      305,500
AM Class B \4\..........................................             1,523            1    3,875,875    3,807,500        2,488        2,500    3,807,500
AM Class C \4\..........................................               870            1    1,400,175    1,348,500        1,559        1,550    1,348,500
AM Class D \4\..........................................             1,492            1    4,587,900    4,476,000        3,004        3,000    4,476,000
FM Classes A, B1 & C3 \4\...............................             3,150            1    9,678,200    9,371,250        2,987        2,975    9,371,250
FM Classes B, C, C0, C1 & C2 \4\........................             3,114            1   11,849,725   11,521,800        3,703        3,700   11,521,800
AM Construction Permits \1\.............................                10            1        9,300        5,550          555          555        5,550
FM Construction Permits \1\.............................               113            1      192,425      110,740          980          980      110,740
Satellite TV............................................               126            1      224,000      217,350        1,722        1,725      217,350
Digital TV Markets 1-10.................................               139            1    8,433,825    8,305,250       59,748       59,750    8,305,250
Digital TV Markets 11-25................................               131            1    6,348,825    5,898,275       45,013       45,025    5,898,275
Digital TV Markets 26-50................................               181            1    5,525,025    5,439,050       30,049       30,050    5,439,050
Digital TV Markets 51-100...............................               285            1    4,301,600    4,289,250       14,976       14,975    4,267,875
Digital TV Remaining Markets............................               367            1    1,825,000    1,807,475        4,924        4,925    1,807,475
Digital TV Construction Permits\1\......................                 3            1       15,000       14,775        4,925        4,925       14,775
LPTV/Translators/Boosters/Class A TV....................             4,051            1    1,785,420    1,741,930          428          430    1,741,930
CARS Stations...........................................               230            1      220,875      215,050          935          935      215,050
Cable TV Systems, including IPTV........................        62,000,000            1   64,200,000   58,900,000        .9529          .95   58,900,000
Direct Broadcast Satellite (DBS)........................        32,500,000            1    9,180,000   12,350,000        .3800          .38   12,350,000
Interstate Telecommunication Service Providers..........   $37,000,000,000            1  142,722,000  111,740,000      0.00302      0.00302  111,740,000
Toll Free Numbers.......................................        32,700,000            1    4,745,000    3,924,000       0.1174         0.12    3,924,000
CMRS Mobile Services (Cellular/Public Mobile)...........       393,000,000            1   73,200,000   82,530,000        0.210         0.21   82,530,000
CMRS Messag. Services...................................         2,100,000            1      184,000      168,000       0.0800        0.080      168,000
BRS \2\.................................................               870            1      645,250      558,050          800          800      696,000
LMDS....................................................               395            1      286,375      454,250          800          800      316,000
Per 64 kbps Int'l Bearer Circuits Terrestrial (Common) &        30,056,000            1      638,000      801,295        .0267          .03      901,680
 Satellite (Common & Non-Common)........................
Submarine Cable Providers (see chart in Appendix C) \3\.             41.19            1    5,486,242    5,660,765      137,437      137,425    5,660,261
Earth Stations..........................................             3,400            1    1,173,000    1,224,000          360          360    1,224,000
Space Stations (Geostationary)..........................                97            1   13,155,125   13,669,725      140,924      140,925   13,669,725
Space Stations (Non-Geostationary)......................                 7            1      911,700      947,450      135,343      135,350      947,450
****** Total Estimated Revenue to be Collected..........  ................  ...........  384,890,362  358,571,405  ...........  ...........  358,670,986
****** Total Revenue Requirement........................  ................  ...........  384,012,497  356,710,992  ...........  ...........  356,710,992
Difference..............................................  ................  ...........      877,865    1,860,413  ...........  ...........    1,959,994
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table 3
\1\ The AM and FM Construction Permit revenues and the Digital (VHF/UHF) Construction Permit revenues were adjusted, respectively, to set the regulatory
  fee to an amount no higher than the lowest licensed fee for that class of service. Reductions in the Digital (VHF/UHF) Construction Permit revenues,
  and in the AM and FM Construction Permit revenues, were offset by increases in the revenue totals for Digital television stations by market size, and
  in the AM and FM radio stations by class size and population served, respectively.
\2\ MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate
  the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands, Report & Order
  and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, para. 6 (69 FR 72048, December 10, 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 the Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Report and Order and Further Notice of Proposed Rulemaking, 24
  FCC Rcd 6388 (73 FR 50285, August 26, 2008) and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd
  4208 (74 FR 22104, May 12, 2009).
\4\ The fee amounts listed in the column entitled ``Rounded New FY 2017 Regulatory Fee'' constitute a weighted average broadcast regulatory fee by class
  of service. The actual FY 2017 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4.


[[Page 44335]]

Table 4--FY 2017 Schedule of Regulatory Fees

    Regulatory fees in the top eight fee categories are collected by 
the Commission in advance to cover the term of the license and are 
submitted at the time the application is filed.

------------------------------------------------------------------------
                                                              Annual
                      Fee category                        regulatory fee
                                                             (U.S. $s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)....              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 parts               .21
 20, 22, 24, 27, 80 and 90).............................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22,             .08
 24 and 90).............................................
Broadband Radio Service (formerly MMDS/MDS) (per                     800
 license) (47 CFR part 27)..............................
Local Multipoint Distribution Service (per call sign)                800
 (47 CFR part 101)......................................
AM Radio Construction Permits...........................             555
FM Radio Construction Permits...........................             980
Digital TV (47 CFR part 73) VHF and UHF Commercial:
    Markets 1-10........................................          59,750
    Markets 11-25.......................................          45,025
    Markets 26-50.......................................          30,050
    Markets 51-100......................................          14,975
    Remaining Markets...................................           4,925
    Construction Permits................................           4,925
Satellite Television Stations (All Markets).............           1,725
Low Power TV, Class A TV, TV/FM Translators & Boosters               430
 (47 CFR part 74).......................................
CARS (47 CFR part 78)...................................             935
Cable Television Systems (per subscriber) (47 CFR part               .95
 76), Including IPTV....................................
Direct Broadcast Service (DBS) (per subscriber) (as                  .38
 defined by section 602(13) of the Act).................
Interstate Telecommunication Service Providers (per               .00302
 revenue dollar)........................................
Toll Free (per toll free subscriber) (47 CFR 52.101(f)).             .12
Earth Stations (47 CFR part 25).........................             360
Space Stations (per operational station in geostationary         140,925
 orbit) (47 CFR part 25) also includes DBS Service (per
 operational station) (47 CFR part 100).................
Space Stations (per operational system in non-                   135,350
 geostationary orbit) (47 CFR part 25)..................
International Bearer Circuits--Terrestrial/Satellites                .03
 (per 64KB circuit).....................................
Submarine Cable Landing Licenses Fee (per cable system).       See Table
                                                                   Below
------------------------------------------------------------------------


                                                          FY 2017 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................................................            $895            $640            $555            $610            $980          $1,100
25,001-75,000...........................................           1,350             955             830             915           1,475           1,650
75,001-150,000..........................................           2,375           1,700           1,475           1,600           2,600           2,925
150,001-500,000.........................................           3,550           2,525           2,200           2,425           3,875           4,400
500,001-1,200,000.......................................           5,325           3,800           3,300           3,625           5,825           6,575
1,200,001-3,000,00......................................           7,975           5,700           4,950           5,425           8,750           9,875
3,000,001-6,000,00......................................          11,950           8,550           7,400           8,150          13,100          14,800
>6,000,000..............................................          17,950          12,825          11,100          12,225          19,650          22,225
--------------------------------------------------------------------------------------------------------------------------------------------------------


             International Bearer Circuits--Submarine Cable
------------------------------------------------------------------------
  Submarine cable systems (capacity as of December 31,
                          2016)                             Fee amount
------------------------------------------------------------------------
< 2.5 Gbps..............................................          $8,600
2.5 Gbps or greater, but less than 5 Gbps...............          17,175
5 Gbps or greater, but less than 10 Gbps................          34,350
10 Gbps or greater, but less than 20 Gbps...............          68,725
20 Gbps or greater......................................         137,425
------------------------------------------------------------------------


[[Page 44336]]

Table 5--Sources of Payment Unit Estimates for FY 2017

    In order to calculate individual service fees for FY 2017, we 
adjusted FY 2016 payment units for each service to more accurately 
reflect expected FY 2017 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 2017 estimates with actual FY 2016 
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 2017 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 2017 payment units are based on FY 2016 
actual payment units, it does not necessarily mean that our FY 2017 
projection is the same number as in FY 2016. We have either rounded the 
FY 2017 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
                                16 payment data.
CMRS Messaging Services......  Based on WTB reports, and FY 16 payment
                                data.
AM/FM Radio Stations.........  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2016 payment
                                units.
Digital TV Stations..........  Based on CDBS data, adjusted for
(Combined VHF/UHF units).....   exemptions, and actual FY 2016 payment
                                units.
AM/FM/TV Construction Permits  Based on CDBS data, adjusted for
                                exemptions, and actual FY 2016 payment
                                units.
LPTV, Translators and          Based on CDBS data, adjusted for
 Boosters, Class A Television.  exemptions, and actual FY 2016 payment
                                units.
BRS (formerly MDS/MMDS)......  Based on WTB reports and actual FY 2016
LMDS.........................   payment units.
                               Based on WTB reports and actual FY 2016
                                payment units.
Cable Television Relay         Based on data from Media Bureau's COALS
 Service (CARS) Stations.       database and actual FY 2016 payment
                                units.
Cable Television System        Based on publicly available data sources
 Subscribers, Including IPTV    for estimated subscriber counts and
 Subscribers.                   actual FY 2016 payment units.
Interstate Telecommunication   Based on FCC Form 499-Q data for the four
 Service Providers.             quarters of calendar year 2016, the
                                Wireline Competition Bureau projected
                                the amount of calendar year 2016 revenue
                                that will be reported on 2017 FCC Form
                                499-A worksheets due in April, 2017.
Earth Stations...............  Based on International Bureau (``IB'')
                                licensing data and actual FY 2016
                                payment units.
Space Stations (GSOs & NGSOs)  Based on IB data reports and actual FY
                                2016 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 Determine 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 Sec. Sec.  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 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

[[Page 44337]]

resulting distance to principal community contours were used to form a 
geographical polygon. Population counting was accomplished by 
determining which 2010 block centroids were contained in the polygon. 
The sum of the population figures for all enclosed blocks represents 
the total population for the predicted principal community coverage 
area.

Table 7--FY 2016 Schedule of Regulatory Fees

    Regulatory fees in the top eight fee categories are collected by 
the Commission in advance to cover the term of the license and are 
submitted at the time the application is filed.

------------------------------------------------------------------------
                                                              Annual
                      Fee Category                        regulatory fee
                                                             (U.S. $s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)....              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 parts               .20
 20, 22, 24, 27, 80 and 90).............................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22,             .08
 24 and 90).............................................
Broadband Radio Service (formerly MMDS/MDS) (per                     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 & Boosters               455
 (47 CFR part 74).......................................
CARS (47 CFR part 78)...................................             775
Cable Television Systems (per subscriber) (47 CFR part              1.00
 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 52.101(f)).             .13
Earth Stations (47 CFR part 25).........................             345
Space Stations (per operational station in geostationary         138,475
 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 system).       See Table
                                                                   Below
------------------------------------------------------------------------

FY 2016 Schedule of Regulatory Fees: (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
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 44338]]


                   FY 2016 Schedule of Regulatory Fees
             International Bearer Circuits--Submarine Cable
------------------------------------------------------------------------
  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
------------------------------------------------------------------------

VII. Final Regulatory Flexibility Analysis

    58. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\170\ an Initial Regulatory Flexibility Analysis (IRFA) 
was included in the Notice of Proposed Rulemaking.\171\ The Commission 
sought written public comment on these proposals including comment on 
the IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms to 
the IRFA.\172\
---------------------------------------------------------------------------

    \170\ 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 Number 104-121, Title II, 110 Stat. 847 (1996).
    \171\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2017, Notice of Proposed Rulemaking, MD Docket No. 17-134, 32 
FCC Rcd 4526 (2017) (FY 2017 NPRM); 80 FR 26019, June 6, 2017.
    \172\ 5 U.S.C. 604.
---------------------------------------------------------------------------

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

    59. In this Report and Order, we conclude the Assessment and 
Collection of Regulatory Fees for Fiscal Year (FY) 2017 proceeding to 
collect $356,710,992 in regulatory fees for FY 2017, pursuant to 
section 9 of the Communications Act of 1934, as amended (Communications 
Act or Act).\173\ These regulatory fees will be due in September 2017. 
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.\174\
---------------------------------------------------------------------------

    \173\ 47 U.S.C. 159.
    \174\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    60. This FY 2017 Report and Order adopts a regulatory fee schedule 
that includes the following noteworthy changes from prior years: (1) A 
reallocation of 38 FTEs in the Wireline Competition Bureau from direct 
to indirect; (2) a reallocation of four FTEs from the Wireline 
Competition Bureau to the Wireless Telecommunications Bureau; (3) an 
updated regulatory fee for Direct Broadcast Satellite (DBS) providers, 
a subcategory in the cable television and Internet Protocol Television 
(IPTV) category; (4) adjustments to the regulatory fees on radio and 
television broadcasters; (5) an increase in the de minimis threshold 
for annual regulatory fee payments from $500 to $1,000; and (6) the 
elimination of the distinction between non-common carrier and common 
carrier terrestrial International Bearer Circuits (IBCs).

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

    61. None.

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

    62. 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.\175\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \176\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\177\ 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.\178\ Nationwide, there are a total of 
approximately 27.9 million small businesses, according to the SBA.\179\
---------------------------------------------------------------------------

    \175\ 5 U.S.C. 603(b)(3).
    \176\ 5 U.S.C. 601(6).
    \177\ 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.''
    \178\ 15 U.S.C. 632.
    \179\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
---------------------------------------------------------------------------

    63. 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.'' \180\ 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.\181\ 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.\182\ Thus, under 
this size standard, most firms in this industry can be considered 
small.
---------------------------------------------------------------------------

    \180\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \181\ See 13 CFR 120.201, NAICS code 517110.
    \182\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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    64. 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

[[Page 44339]]

or fewer employees.\183\ 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.\184\ The 
Commission therefore estimates that most providers of local exchange 
carrier service are small entities that may be affected by the rules 
adopted.
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    \183\ 13 CFR 121.201, NAICS code 517110.
    \184\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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    65. Incumbent LECs. Neither the Commission nor the SBA has 
developed a small business size standard specifically for incumbent 
local exchange services. The closest applicable NAICS code category is 
Wired Telecommunications Carriers as defined in paragraph 6 of this 
FRFA. Under that size standard, such a business is small if it has 
1,500 or fewer employees.\185\ According to Commission data, 3,117 
firms operated in that year. Of this total, 3,083 operated with fewer 
than 1,000 employees.\186\ 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.\187\ Of this total, an 
estimated 1,006 have 1,500 or fewer employees.\188\
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    \185\ 13 CFR 121.201, NAICS code 517110.
    \186\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \187\ 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).
    \188\ Id.
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    66. 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.\189\ 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.\190\ Based on this data, the Commission 
concludes that most 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.\191\ Of these 1,442 carriers, 
an estimated 1,256 have 1,500 or fewer employees.\192\ 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.\193\ Also, 
72 carriers have reported that they are Other Local Service 
Providers.\194\ Of this total, 70 have 1,500 or fewer employees.\195\ 
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.
---------------------------------------------------------------------------

    \189\ 13 CFR 121.201, NAICS code 517110.
    \190\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \191\ See Trends in Telephone Service, at Table 5.3.
    \192\ Id.
    \193\ Id.
    \194\ Id.
    \195\ Id.
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    67. 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.\196\ 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.\197\ According to internally developed Commission 
data, 359 companies reported that their primary telecommunications 
service activity was the provision of interexchange services.\198\ Of 
this total, an estimated 317 have 1,500 or fewer employees.\199\ 
Consequently, the Commission estimates that most interexchange service 
providers are small entities that may be affected by the rules adopted.
---------------------------------------------------------------------------

    \196\ 13 CFR 121.201, NAICS code 517110.
    \197\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \198\ See Trends in Telephone Service, at Table 5.3.
    \199\ Id.
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    68. 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.\200\ 
Under the applicable SBA size standard, such a business is small if it 
has 1,500 or fewer employees.\201\ 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.\202\ 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.\203\ All 
193 carriers have 1,500 or fewer employees.\204\ Consequently, the 
Commission estimates that the majority of prepaid calling card 
providers are small entities that may be affected by the rules adopted.
---------------------------------------------------------------------------

    \200\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch.
    \201\ 13 CFR 121.201, NAICS code 517911.
    \202\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \203\ See Trends in Telephone Service, at Table 5.3.
    \204\ Id.
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    69. 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.\205\ 
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.\206\ 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

[[Page 44340]]

services.\207\ Of this total, an estimated 211 have 1,500 or fewer 
employees.\208\ Consequently, the Commission estimates that the 
majority of local resellers are small entities that may be affected by 
the rules adopted.
---------------------------------------------------------------------------

    \205\ 13 CFR 121.201, NAICS code 517911.
    \206\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \207\ See Trends in Telephone Service, at Table 5.3.
    \208\ Id.
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    70. 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.\209\ Under that size standard, such a business is small if 
it has 1,500 or fewer employees.\210\ 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.\211\ 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.\212\ Of this total, an estimated 
857 have 1,500 or fewer employees.\213\ Consequently, the Commission 
estimates that the majority of toll resellers are small entities.
---------------------------------------------------------------------------

    \209\ 13 CFR 121.201, NAICS code 517911.
    \210\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \211\ Id.
    \212\ Trends in Telephone Service, at Table 5.3.
    \213\ Id.
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    71. 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.\214\ 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.\215\ Thus, under this 
category and the associated small business size standard, most 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.\216\ Of these, an estimated 279 have 1,500 or fewer 
employees.\217\ Consequently, the Commission estimates that most Other 
Toll Carriers are small entities.
---------------------------------------------------------------------------

    \214\ 13 CFR 121.201, NAICS code 517110.
    \215\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \216\ Trends in Telephone Service, at Table 5.3.
    \217\ Id.
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    72. 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.\218\ 
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.\219\ Of this total, an estimated 261 have 1,500 
or fewer employees.\220\ Thus, using available data, we estimate that 
the majority of wireless firms can be considered small.
---------------------------------------------------------------------------

    \218\ NAICS code 517210. See http://www.census.gov/cgi-bin/ssd/naics/naiscsrch.
    \219\ Trends in Telephone Service, at Table 5.3.
    \220\ Id.
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    73. 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.'' \221\ 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.\222\ 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 most firms that operate television stations are 
small. The Commission has estimated the number of licensed commercial 
television stations to be 1,383.\223\ 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.\224\ We therefore 
estimate that the majority of commercial television broadcasters are 
small entities.
---------------------------------------------------------------------------

    \221\ U.S. Census Bureau, 2012 NAICS code Economic Census 
Definitions, http://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \222\ 13 CFR 121.201, NAICS code 515120.
    \223\ See FCC News Release, ``Broadcast Station Totals as of 
March 31, 2017,'' April 11, 2017; https://apps.fcc.gov/edocs_public/attachmatch/DOC-344256A1.pdf.
    \224\ We recognize that BIA's estimate differs slightly from the 
FCC total.
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    74. In assessing whether a business concern qualifies as small 
under the above definition, business (control) affiliations \225\ 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.
---------------------------------------------------------------------------

    \225\ ``[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).
---------------------------------------------------------------------------

    75. In addition, the Commission has estimated the number of 
licensed noncommercial educational television stations to be 394.\226\ 
These stations are non-profit, and therefore considered to be small 
entities.\227\ There are also 2,382 low power television stations, 
including

[[Page 44341]]

Class A stations.\228\ 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.
---------------------------------------------------------------------------

    \226\ See FCC News Release, ``Broadcast Station Totals as of 
March 31, 2017,'' April 11, 2017; https://apps.fcc.gov/edocs_public/attachmatch/DOC-344256A1.pdf.
    \227\ See generally 5 U.S.C. 601(4), (6).
    \228\ See FCC News Release, ``Broadcast Station Totals as of 
March 31, 2017,'' April 11, 2017; https://apps.fcc.gov/edocs_public/attachmatch/DOC-344256A1.pdf.
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    76. 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 network, or from external sources.'' \229\ 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.\230\ 
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. \231\ 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, most such 
entities are small entities.
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    \229\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \230\ 13 CFR 121.201, NAICS code 515112.
    \231\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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    77. In assessing whether a business concern qualifies as small 
under the above size standard, business affiliations must be 
included.\232\ In addition, to be determined to be a ``small 
business,'' the entity may not be dominant in its field of 
operation.\233\ 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.
---------------------------------------------------------------------------

    \232\ ``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).
    \233\ 13 CFR 121.102(b) (an SBA regulation).
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    78. 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.\234\ 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.\235\ Thus under this size 
standard, most firms offering cable and other program distribution 
services can be considered small and may be affected by rules adopted.
---------------------------------------------------------------------------

    \234\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \235\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US-51SSSZ5&prodType=Table.
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    79. 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.\236\ Industry data 
indicate that there are currently 4,413 active cable systems in the 
United States.\237\ Of this total, all but ten cable operators 
nationwide are small under the 400,000-subscriber size standard.\238\ 
In addition, under the Commission's rate regulation rules, a ``small 
system'' is a cable system serving 15,000 or fewer subscribers.\239\ 
Current Commission records show 4,413 cable systems nationwide.\240\ 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.\241\ Thus, under this standard as well, we estimate that most 
cable systems are small entities.
---------------------------------------------------------------------------

    \236\ 47 CFR 76.901(e).
    \237\ See Eighteenth Competition Report, 32 FCC Rcd at 584, 
para. 39 (citing the Commission's Cable Operations and Licensing 
Systems (COALS) database).
    \238\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2017).
    \239\ 47 CFR 76.901(c)
    \240\ See footnote 2, supra.
    \241\ August 5, 2015 report from the Media Bureau based on its 
research in COALS. See www.fcc.gov/coals.
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    80. 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.'' \242\ There are approximately 53 million cable video 
subscribers in the United States today.\243\ 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.\244\ 
Based on available data, we find that all but nine incumbent cable 
operators are small entities under this size standard.\245\ 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.\246\ 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.
---------------------------------------------------------------------------

    \242\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \243\ See NCTA Industry Data, Cable's Customer Base, available 
at https://www.ncta.com/industry-data (last visited July 6, 2017).
    \244\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \245\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2018).
    \246\ 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 Sec.  76.901(f) of the Commission's rules. See 47 CFR 
76.901(f).
---------------------------------------------------------------------------

    81. 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

[[Page 44342]]

operate are included in this industry.\247\ The SBA determines that a 
wireline business is small if it has fewer than 1500 employees.\248\ 
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.\249\ Based on that data, we conclude that most 
wireline firms are small under the applicable standard. However, 
currently only two entities provide DBS service, AT&T and DISH Network. 
AT&T and DISH Network each report annual revenues that are in excess of 
the threshold for a small business. Accordingly, we conclude that DBS 
service is provided only by large firms.
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    \247\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \248\ NAICS code 517110; 13 CFR 121.201.
    \249\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
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    82. 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.\250\ 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.\251\ 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.\252\ Thus, most ``All Other 
Telecommunications'' firms potentially affected by the rules adopted 
can be considered small.
---------------------------------------------------------------------------

    \250\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
    \251\ 13 CFR 121.201; NAICS code 517919.
    \252\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    83. 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.\253\ 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.
---------------------------------------------------------------------------

    \253\ See 47 CFR 52.101(b)
---------------------------------------------------------------------------

    84. 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 
\254\ and Wireless Telecommunications Carriers (except satellite).\255\
---------------------------------------------------------------------------

    \254\ 13 CFR 121.201, NAICS code 517110
    \255\ 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

    85. 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.\256\ 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.\257\ 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.\258\ Based 
on that data, we conclude that most Carrier RespOrgs that operated with 
wireline-based technology are small.
---------------------------------------------------------------------------

    \256\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \257\ 13 CFR 120.201, NAICS code 517110.
    \258\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    86. 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.\259\ 
The appropriate size standard under SBA rules is that such a business 
is small if it has 1,500 or fewer employees.\260\ 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.\261\ 
Based on that data, we conclude that most Carrier RespOrgs that 
operated with wireless-based technology are small.
---------------------------------------------------------------------------

    \259\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \260\ 13 CFR 120.201, NAICS code 517120.
    \261\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    87. 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'' \262\ and ``Other Management Consulting 
Services.'' \263\
---------------------------------------------------------------------------

    \262\ 13 CFR 120.201, NAICS code 541890.
    \263\ 13 CFR 120.201, NAICS code 541618.
---------------------------------------------------------------------------

    88. 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.\264\ The SBA has established a size standard for this 
industry as annual receipts of $15 million dollars or less.\265\ 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.\266\ Based on that data we conclude that most 
Non-Carrier RespOrgs who provide TFN-related advertising services are 
small.
---------------------------------------------------------------------------

    \264\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \265\ 13 CFR 120.201, NAICS code 541890.
    \266\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    89. 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).

[[Page 44343]]

Establishments providing telecommunications or utilities management 
consulting services are included in this industry.\267\ The SBA has 
established a size standard for this industry of $15 million dollars or 
less.\268\ 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. \269\ Based on this data, we 
conclude that most non-carrier RespOrgs who provide TFN-related 
management consulting services are small.\270\
---------------------------------------------------------------------------

    \267\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \268\ 13 CFR 120.201, NAICS code 514618.
    \269\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
    \270\ 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.
---------------------------------------------------------------------------

    90. 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.\271\
---------------------------------------------------------------------------

    \271\ Email from Jennifer Blanchard of SOMOS dated July 1, 2016.
---------------------------------------------------------------------------

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

    91. 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

    92. 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.\272\
---------------------------------------------------------------------------

    \272\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

    93. 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.
    94. 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, 
the Commission increased the de minimis threshold from $500 to $1,000, 
which will impact many small entities that pay regulatory fees. 
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 $1,000 will relieve regulatees both 
financially and administratively. This Report and Order also adopts 
regulatory fees for the smaller market AM and FM broadcast radio 
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

    95. None.

VIII. Ordering Clauses

    96. 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.
    97. It is further ordered that this Report and Order shall be 
effective upon publication in the Federal Register.
    98. 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, Civil rights, Claims, 
Communications common carriers, Cuba, Drug abuse, Environmental impact 
statements, Equal access to justice, Equal employment opportunity, 
Federal buildings and facilities, Government employees, Income taxes, 
Indemnity payments, Individuals with disabilities, Investigations, 
Lawyers, Metric system, Penalties, Radio, Reporting and recordkeeping 
requirements, Telecommunications, Television, Wages.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

    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), 154(j), 155, 157, 160, 201, 
225, 227, 303, 309, 332, 1403, 1404, 1451, 1452, and 1455.

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 &              25.00
     159)...............................................
    (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 &              25.00
     159)...............................................
    (c) Renewal Only (FCC 601 & 159)....................           25.00
    (d) Renewal Only (Electronic Filing) (FCC 601 & 159)           25.00

[[Page 44344]]

 
2. Microwave (47 CFR Pt. 101) (Private).................
    (a) New, Renew/Mod (FCC 601 & 159)..................           25.00
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 &              25.00
     159)...............................................
    (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)...............................
    (a) New, Renew/Mod (FCC 601 & 159)..................           10.00
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 &              10.00
     159)...............................................
    (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)               10.00
     (FCC 601 & 159) Marine Coast.......................
Marine Coast (per license) (47 CFR part 80):
    (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 &              10.00
     159)...............................................
    (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\ .21
5. CMRS Messaging Services (per unit) (FCC 159).........         \3\ .08
6. Broadband Radio Service (formerly MMDS and MDS)......             800
7. Local Multipoint Distribution Service................             800
------------------------------------------------------------------------
\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 Sec.   1.1102.
\2\ These are standard fees that are to be paid in accordance with Sec.
   1.1157(b).
\3\ These are standard fees that are to be paid in accordance with Sec.
   1.1157(b).


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.................................            $895
    25,001-75,000 population............................           1,350
    75,001-150,000 population...........................           2,375
    150,001-500,000 population..........................           3,550
    500,001-1,200,000 population........................           5,325
    1,200,001-3,000,000 population......................           7,975
    3,000,001-6,000,000 population......................          11,950
    >6,000,000 population...............................          17,950
2. AM Class B:
    <=25,000 population.................................             640
    25,001-75,000 population............................             955
    75,001-150,000 population...........................           1,700
    150,001-500,000 population..........................           2,525
    500,001-1,200,000 population........................           3,800
    1,200,001-3,000,000 population......................           5,700
    3,000,001-6,000,000 population......................           8,550
    >6,000,000 population...............................          12,825
3. AM Class C:
    <=25,000 population.................................             555
    25,001-75,000 population............................             830
    75,001-150,000 population...........................           1,475

[[Page 44345]]

 
    150,001-500,000 population..........................           2,200
    500,001-1,200,000 population........................           3,300
    1,200,001-3,000,000 population......................           4,950
    3,000,001-6,000,000 population......................           7,400
    >6,000,000 population...............................          11,100
4. AM Class D:
    <=25,000 population.................................             610
    25,001-75,000 population............................             915
    75,001-150,000 population...........................           1,600
    150,001-500,000 population..........................           2,425
    500,001-1,200,000 population........................           3,625
    1,200,001-3,000,000 population......................           5,425
    3,000,001-6,000,000 population......................           8,150
    >6,000,000 population...............................          12,225
5. AM Construction Permit                                            555
6. FM Classes A, B1 and C3:
    <=25,000 population.................................             980
    25,001-75,000 population............................           1,475
    75,001-150,000 population...........................           2,600
    150,001-500,000 population..........................           3,875
    500,001-1,200,000 population........................           5,825
    1,200,001-3,000,000 population......................           8,750
    3,000,001-6,000,000 population......................          13,100
    >6,000,000 population...............................          19,650
7. FM Classes B, C, C0, C1 and C2:
    <=25,000 population.................................           1,100
    25,001-75,000 population............................           1,650
    75,001-150,000 population...........................           2,925
    150,001-500,000 population..........................           4,400
    500,001-1,200,000 population........................           6,575
    1,200,001-3,000,000 population......................           9,875
    3,000,001-6,000,000 population......................          14,800
    >6,000,000 population...............................          22,225
8. FM Construction Permits..............................             980
------------------------------------------------------------------------
                           TV (47 CFR part 73)
------------------------------------------------------------------------
Digital TV (UHF and VHF Commercial Stations):
    1. Markets 1 thru 10................................         $59,750
    2. Markets 11 thru 25...............................          45,025
    3. Markets 26 thru 50...............................          30,050
    4. Markets 51 thru 100..............................          14,975
    5. Remaining Markets................................           4,925
    6. Construction Permits.............................           4,925
Satellite UHF/VHF Commercial:
1. All Markets..........................................           1,725
Low Power TV, Class A TV, TV/FM Translator, & TV/FM                  430
 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 Providers      .00302.
 (per interstate and international end-user
 revenues (see FCC Form 499-A).
2. Toll Free Number Fee......................  .12 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............  $935.
2. Cable TV System, Including IPTV (per        .95.
 subscriber).

[[Page 44346]]

 
3. Direct Broadcast Satellite (DBS)..........  .38 per subscriber.
------------------------------------------------------------------------


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


Sec.  1.1156  Schedule of regulatory fees for international services.

    (a) Geostationary Orbit (GSO) and Non-Geostationary Orbit (NGSO) 
Space Stations. Regulatory fees are to be paid for GSO and NGSO Space 
Stations that are licensed and operational as of October 1, 2016. The 
following schedule applies for the listed services:

------------------------------------------------------------------------
                 Fee category                          Fee amount
------------------------------------------------------------------------
Space Stations (Geostationary Orbit).........  $140,925
Space Stations (Non-Geostationary Orbit).....  135,350
Earth Stations: Transmit/Receive & Transmit    360
 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, 2016)               Fee amount
------------------------------------------------------------------------
Terrestrial Common Carrier...................  $0.03 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, 2016)                            Fee amount
------------------------------------------------------------------------
<2.5 Gbps....................................  $8,600
2.5 Gbps or greater, but less than 5 Gbps....  17,175
5 Gbps or greater, but less than 10 Gbps.....  34,350
10 Gbps or greater, but less than 20 Gbps....  68,725
20 Gbps or greater...........................  137,425
------------------------------------------------------------------------

[FR Doc. 2017-19386 Filed 9-21-17; 8:45 am]
 BILLING CODE 6712-01-P