[Federal Register Volume 83, Number 146 (Monday, July 30, 2018)]
[Rules and Regulations]
[Pages 36460-36467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15651]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket Nos. 18-175; FCC 18-65]


Assessment and Collection of Regulatory Fees for Fiscal Year 2018

AGENCY: Federal Communications Commission.

ACTION: Final action.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) makes decisions involving submarine cables, international 
bearer circuits, and the calculation of cable television subscribers.

DATES: This final action is effective August 29, 2018.

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

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's FY 
2018 Report and Order (FY 2018 Report and Order), FCC 18-65, MD Docket 
No. 18-175 adopted on May 21, 2018 and released on May 22, 2018. The 
full text of this document is available for inspection and copying 
during normal business hours in the FCC Reference Center, 445 12th 
Street SW, Room CY-A257, Portals II, Washington, DC 20554, and may also 
be purchased from the Commission's copy contractor, BCPI, Inc., Portals 
II, 445 12th Street SW, Room CY-B402, Washington, DC 20554. Customers 
may contact BCPI, Inc. via their website, http://www.bcpi.com, or call 
1-800-378-3160. This document is available in alternative formats 
(computer diskette, large print, audio record, and braille). Persons 
with disabilities who need documents in these formats may contact the 
FCC by email: [email protected] or phone: 202-418-0530 or TTY: 202-418-
0432.

[[Page 36461]]

I. Procedural Matters

A. Final Regulatory Flexibility Analysis

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

    2. This document does not contain new or modified information 
collection requirements subject to the Paperwork Reduction Act of 1995 
(PRA), Public Law 104-13. In addition, therefore, it does not contain 
any new or modified information collection burden for small business 
concerns with fewer than 25 employees, pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4).

C. Congressional Review Act

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

II. Introduction

    In this Report and Order, we address several regulatory fee issues 
raised in the Further Notice of Proposed Rulemaking that published 
after the Commission's FY 2017 Report and Order.\2\ More specifically, 
in this Report and Order, we (1) adopt new tiers for calculating 
regulatory fees for submarine cable systems; (2) decline to adopt a new 
regulatory fee for international section 214 authorizations; and (3) 
retain the optional bulk rate calculation for determining the number of 
subscribers in multiple dwelling units used in the calculation of cable 
television regulatory fees.
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    \2\ See generally Assessment and Collection of Regulatory Fees 
for Fiscal Year 2017 (Final Rule), 82 FR 44322 (Sept. 22, 2017), 32 
FCC Rcd 7057 (2017) (FY 2017 Report and Order) and Assessment and 
Collection of Regulatory Fees for Fiscal Year 2017 (Further Notice 
of Proposed Rulemaking), 82 FR 50598 (Nov. 1, 2017), 32 FCC Rcd 7057 
(2017) (2017 FNPRM).
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III. Report and Order

A. Submarine Cable Regulatory Fees

    1. In 2009, the Commission adopted a new methodology for 
calculating submarine cable regulatory fees, based on a proposal from 
the submarine cable industry.\3\ The methodology adopted was a tiered 
per-cable system, with higher fees for larger systems and lower fees 
for smaller systems. The Commission concluded that the methodology was 
in the public interest and competitively neutral because it included 
both common carriers and non-common carriers; all entities with cable 
landing licensees would be required to pay this regulatory fee.\4\ At 
that time, the Commission adopted a five-tier system for the submarine 
cable industry, but since that date the subsequent growth in the 
industry has moved all but two systems into the highest tier.\5\ In the 
2017 FNPRM, we sought comment on revising the regulatory fee tiers for 
submarine cable systems.\6\ One commenter, the Submarine Cable 
Coalition, generally agrees with our proposal to revise the existing 
tiers.\7\
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    \3\ Submarine Cable Order, 74 FR 22104 (May 12, 2009), 24 FCC 
Rcd at 4212-4216, paras. 7-18.
    \4\ Id., 24 FCC Rcd at 4212-13, paras. 8-9.
    \5\ FY 2017 Report and Order, 32 FCC Rcd at 7074, para. 46.
    \6\ 2017 FNPRM, 32 FCC Rcd at 7074-75, para. 46.
    \7\ Coalition Reply Comments at 3-4, 7-8.
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    2. We adjust the tiers proposed in the 2017 FNPRM to reflect 
capacity growth since 2009 when the submarine cable tiers were first 
established. Specifically, the regulatory fee tiers for submarine cable 
systems we adopt below add higher thresholds to reflect capacity growth 
in the industry. Based on this increase in capacity, we believe the 
tiers better capture varying types of submarine cable operators.
     Systems with capacity equal to or greater than 4,000 Gbps 
will now pay 16 payment units.
     Systems with capacity equal to or greater than 1,000 Gbps 
but less than 4,000 Gbps will now pay 8 payment units.
     Systems with capacity equal to or greater than 250 Gbps 
but less than 1,000 Gbps will now pay 4 payment units.
     Systems with capacity equal to or greater than 50 Gbps but 
less than 250 Gbps, will pay 2 payment units.
     Systems with capacity less than 50 Gbps will pay 1 payment 
unit.
    3. Under the revised regulatory fee tiers we adopt today, we 
estimate that approximately half of the submarine cable systems will be 
in the bottom or middle tiers, while the remaining systems will be in 
the new highest tier. The FCC will provide proposed rates for submarine 
cable systems for FY 2018 in future rulemaking.
    4. Finally, while the Submarine Cable Coalition contends that non-
common carrier submarine cable systems should pay lower fees than 
common carriers, we note that the Commission adopted a competitively 
neutral methodology that included both common carriers and non-common 
carriers in the Submarine Cable Order, based on a consensus proposal 
from a group of operators, including at least one member of the 
Coalition, GU Holdings, Inc., an indirect, wholly-owned subsidiary of 
Google, Inc.\8\ The Coalition has not provided any evidence to support 
its claim that we should depart from this competitively neutral 
methodology and treat non-common carrier submarine cable systems 
differently from common carrier systems at this time.
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    \8\ Submarine Cable Order, 24 FCC Rcd at 4208, para. 1 & note 3.
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B. International Bearer Circuits and Section 214 Authorizations

    5. In the 2017 FNPRM, the Commission sought comment on a proposal 
raised by the Submarine Cable Coalition, that in lieu of regulatory 
fees for international bearer circuits (IBCs), we should assess a 
regulatory fee, based on International Bureau FTEs, on every holder of 
an international section 214 authorization.\9\ SIA supports replacing 
the satellite IBC fee with a fee on each international section 214 
authorization and contends that such a fee for all entities with 
international section 214 authorizations would be appropriate because 
the holders of international section 214 authority are ``directly 
involved in international common carrier services and benefit from 
associated Commission regulation. . . .'' \10\ The Submarine Cable 
Coalition contends that adopting a flat fee for all holders of 
international section 214 authorizations would be an efficient and 
equitable methodology for assessing regulatory fees.\11\
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    \9\ 2017 FNPRM, 32 FCC Rcd at 7075, para. 48. This proposal was 
from the Submarine Cable Coalition.
    \10\ SIA Comments at 6.
    \11\ Coalition Reply Comments at 3.
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    6. Other commenters oppose this approach. CTIA argues that 
assessing a fee based on international section 214 authorizations would 
change the basis for the IBC fees, which is ownership and use of 
international circuits, because many international 214 authorization 
holders only provide resold service and do not have international 
facilities.\12\ AT&T agrees with CTIA and notes that this approach 
would impose a new IBC regulatory fee on hundreds of entities

[[Page 36462]]

that do not currently pay IBC fees.\13\ These commenters also explain 
that because only common carriers hold international section 214 
authorizations, this approach would essentially reverse our decision in 
the FY 2017 Report and Order to include non-common carrier terrestrial 
IBCs in the IBC regulatory fee methodology.\14\ For example, AT&T 
states that replacing all or part of the IBC fee with a flat fee on 
international section 214 authorizations would ``effectively reverse 
the Commission's decisions to provide a competitively neutral IBC fee 
structure.'' \15\ CenturyLink argues that entities holding an 
international 214 authorization but that do not have active 
international circuits do not receive the benefits of Commission 
international activities, and therefore should not be subject to 
regulatory fees.\16\ CTIA also states that international section 214 
applicants already pay a $1,155 filing fee with each application and 
there is no evidence of other International Bureau costs associated 
with international section 214 authorizations.\17\ Commenters also note 
that such an approach would present administrative difficulties since 
many carriers have multiple international 214 authorizations and can 
surrender them if the Commission adopted a per-international section 
214 authorization regulatory fee.\18\
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    \12\ CTIA Comments at 2-3.
    \13\ AT&T Reply Comments at 6; CTIA Comments at 2-3.
    \14\ CTIA Comments at 4-5; CenturyLink Comments at 5; AT&T Reply 
Comments at 5-6.
    \15\ AT&T Jan. 17, 2018 ex parte at 1.
    \16\ CenturyLink Comments at 5. See also AT&T Reply Comments at 
6.
    \17\ CTIA Comments at 3-4.
    \18\ CTIA Comments at 5; CenturyLink Comments at 5; AT&T Reply 
Comments at 6. The Submarine Cable Coalition contends that their 
proposal would reduce the burden on the International Bureau because 
of the costs associated with ``overseeing redundant international 
Section 214 licensees.'' Submarine Cable Coalition Reply Comments at 
9. However, there is no evidence in the record that there are such 
costs to the International Bureau.
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    7. We decline to impose regulatory fees on international section 
214 authorizations in lieu of our existing IBC regulatory fees for 
terrestrial and satellite IBCs and submarine cable systems. The record 
does not demonstrate that this approach is advantageous over the 
existing scheme established in section 9(g) of the Act to charge the 
IBC regulatory fee based on active international bearer circuits.\19\ 
The Submarine Cable Coalition's proposal is also problematic because it 
would exclude non-common carriers from paying the fee. However, the 
Commission concluded in the FY 2017 Report and Order that regulatory 
fees should be paid for non-common carrier satellite and terrestrial 
circuits, as well as submarine cable systems.\20\ Further, the 
Submarine Cable Coalition has not shown how a CMRS provider or an ITSP 
with an international section 214 authorization is subject to 
regulation or oversight by the International Bureau that would justify 
an additional annual regulatory fee based on International Bureau FTEs. 
We recognize that oversight or regulation by the International Bureau 
is not limited to the processing of international section 214 
authorizations.\21\ We are, however, unconvinced at this time that such 
costs justify requiring hundreds of carriers regulated by other bureaus 
to pay additional regulatory fees \22\ based on International Bureau 
FTEs. For these reasons, we decline to adopt a new regulatory fee 
category for international section 214 authorizations to replace IBC 
regulatory fees at this time.
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    \19\ 47 U.S.C. 159(g).
    \20\ FY 2017 Report and Order, 32 FCC Rcd at 7071-2, paras. 34-
35.
    \21\ For example, International Bureau FTEs could be involved in 
an international section 214 rulemaking proceeding, a proceeding 
related to revocation of a carrier's international section 214 
authorization, or other matters related to section 214 of the Act.
    \22\ The holders of such authorization pay regulatory fees based 
on the service provided (e.g., CMRS or ITSP).
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C. Cable Television Services--Calculation of Number of Subscribers

    8. In the FY 2008 FNPRM, the Commission sought comment on the 
optional bulk rate calculation for determining the number of 
subscribers in a multiple dwelling unit or MDU.\23\ The methodology for 
calculating the number of cable subscribers has been the following:
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    \23\ FY 2008 FNPRM, 73 FR 30563 (May 28, 2018), 24 FCC Rcd at 
6407-6408, paras. 51-52.

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 [year], rather than on a count as of December 31, 
[year].\24\
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    \24\ This is essentially the same methodology we sought comment 
on in the FY 2008 FNPRM.

    9. In the 2017 FNPRM, we sought comment on whether we should keep 
the bulk rate calculation or if, due to the passage of time, we should 
modify the methodology to more accurately calculate the number of 
subscribers in a MDU.\25\ Commenters addressing this issue unanimously 
support retaining the current optional bulk rate calculation.\26\ In 
particular, commenters state that our methodology continues to be ``a 
reasonable and feasible approach to determining the number of MDU 
subscribers for regulatory fee purposes, and should be retained.'' \27\ 
And, there is no evidence in the record to support revising or 
eliminating this optional bulk rate calculation. For these reasons, we 
retain the bulk rate calculation.
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    \25\ 2017 FNPRM, 32 FCC Rcd at 7076, paras. 50-51.
    \26\ ITTA Comments at 1-2; NCTA and ACA Comments at 1-3.
    \27\ NCTA and ACA Comments at 2.
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IV. Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\28\ an Initial Regulatory Flexibility Analysis (IRFA) 
was included in the 2017 FNPRM.\29\ The Commission sought written 
public comment on these proposals including comment on the IRFA. This 
Final Regulatory Flexibility Analysis (FRFA) conforms to the IRFA.\30\
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    \28\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
    \29\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2017, 32 FCC Rcd 7057 (2017).
    \30\ 5 U.S.C. 604.
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A. Need for, and Objectives of, the Report and Order

    2. This Report and Order adopts a revision to the existing tiers 
for submarine cable regulatory fees.

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

    3. None.

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

    4. The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules and policies, if adopted.\31\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \32\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\33\ A ``small business

[[Page 36463]]

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.\34\ Nationwide, there are a 
total of approximately 27.9 million small businesses, according to the 
SBA.\35\
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    \31\ 5 U.S.C. 603(b)(3).
    \32\ 5 U.S.C. 601(6).
    \33\ 5 U.S.C. 601(3) (incorporating the definition of ``small-
business concern'' from 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.''
    \34\ 15 U.S.C. 632.
    \35\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
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    5. 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.'' \36\ 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.\37\ 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.\38\ Thus, under 
this size standard, most firms in this industry can be considered 
small.
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    \36\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \37\ See 13 CFR 120.201, NAICS code 517110.
    \38\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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    6. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to local exchange services. The closest applicable NAICS 
code category is Wired Telecommunications Carriers as defined in 
paragraph 6 of this FRFA. Under the applicable SBA size standard, such 
a business is small if it has 1,500 or fewer employees.\39\ 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.\40\ 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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    \39\ 13 CFR 121.201, NAICS code 517110.
    \40\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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    7. 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.\41\ According to Commission data, 3,117 firms operated 
in that year. Of this total, 3,083 operated with fewer than 1,000 
employees.\42\ 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.\43\ Of this total, an 
estimated 1,006 have 1,500 or fewer employees.\44\
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    \41\ 13 CFR 121.201, NAICS code 517110.
    \42\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \43\ See Trends in Telephone Service, Federal Communications 
Commission, Wireline Competition Bureau, Industry Analysis and 
Technology Division at Table 5.3 (Sept. 2010) (Trends in Telephone 
Service).
    \44\ Id.
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    8. 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.\45\ 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.\46\ 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.\47\ Of these 1,442 carriers, 
an estimated 1,256 have 1,500 or fewer employees.\48\ 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.\49\ Also, 72 
carriers have reported that they are Other Local Service Providers.\50\ 
Of this total, 70 have 1,500 or fewer employees.\51\ 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.
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    \45\ 13 CFR 121.201, NAICS code 517110.
    \46\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \47\ See Trends in Telephone Service, at Table 5.3.
    \48\ Id.
    \49\ Id.
    \50\ Id.
    \51\ Id.
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    9. 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.\52\ 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.\53\ According to internally developed Commission 
data, 359 companies reported that their primary telecommunications 
service activity was the provision of interexchange services.\54\ Of 
this total, an estimated 317 have 1,500 or fewer employees.\55\ 
Consequently, the Commission estimates that most interexchange service 
providers are small entities that may be affected by the rules adopted.
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    \52\ 13 CFR 121.201, NAICS code 517110.
    \53\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \54\ See Trends in Telephone Service, at Table 5.3.
    \55\ Id.
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    10. 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

[[Page 36464]]

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.\56\ Under the applicable SBA size standard, such a 
business is small if it has 1,500 or fewer employees.\57\ 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.\58\ 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.\59\ All 193 carriers have 1,500 or fewer 
employees.\60\ Consequently, the Commission estimates that the majority 
of prepaid calling card providers are small entities that may be 
affected by the rules adopted.
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    \56\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch.
    \57\ 13 CFR 121.201, NAICS code 517911.
    \58\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \59\ See Trends in Telephone Service, at Table 5.3.
    \60\ Id.
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    11. 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.\61\ 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.\62\ Under this category and the associated small business 
size standard, the majority of these local resellers can be considered 
small entities. According to Commission data, 213 carriers have 
reported that they are engaged in the provision of local resale 
services.\63\ Of this total, an estimated 211 have 1,500 or fewer 
employees.\64\ Consequently, the Commission estimates that the majority 
of local resellers are small entities that may be affected by the rules 
adopted.
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    \61\ 13 CFR 121.201, NAICS code 517911.
    \62\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \63\ See Trends in Telephone Service, at Table 5.3.
    \64\ Id.
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    12. 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.\65\ Under that size standard, such a business is small if it 
has 1,500 or fewer employees.\66\ 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.\67\ 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.\68\ Of this total, an estimated 857 have 1,500 
or fewer employees.\69\ Consequently, the Commission estimates that the 
majority of toll resellers are small entities.
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    \65\ 13 CFR 121.201, NAICS code 517911.
    \66\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \67\ Id.
    \68\ Trends in Telephone Service at Table 5.3.
    \69\ Id.
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    13.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.\70\ 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.\71\ 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.\72\ Of these, an estimated 279 have 1,500 or fewer 
employees.\73\ Consequently, the Commission estimates that most Other 
Toll Carriers are small entities.
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    \70\ 13 CFR 121.201, NAICS code 517110.
    \71\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \72\ Trends in Telephone Service at Table 5.3.
    \73\ Id.
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    14. 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.\74\ 
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.\75\ Of this total, an estimated 261 have 1,500 or 
fewer employees.\76\ Thus, using available data, we estimate that the 
majority of wireless firms can be considered small.
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    \74\ NAICS code 517210. See http://www.census.gov/cgi-bin/ssd/naics/naiscsrch.
    \75\ Trends in Telephone Service at Table 5.3.
    \76\ Id.
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    15. 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.'' \77\ 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

[[Page 36465]]

having $38.5 million or less in annual receipts.\78\ 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.\79\ 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.\80\ We therefore estimate that the majority of commercial 
television broadcasters are small entities.
---------------------------------------------------------------------------

    \77\ U.S. Census Bureau, 2012 NAICS code Economic Census 
Definitions, http://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \78\ 13 CFR 121.201, NAICS code 515120.
    \79\ 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.
    \80\ We recognize that BIA's estimate differs slightly from the 
FCC total.
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    16. In assessing whether a business concern qualifies as small 
under the above definition, business (control) affiliations \81\ 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.
---------------------------------------------------------------------------

    \81\ ``[Business concerns] are affiliates of each other when one 
concern controls or has the power to control the other or a third 
party or parties controls or has to power to control both.'' 13 CFR 
21.103(a)(1).
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    17. In addition, the Commission has estimated the number of 
licensed noncommercial educational television stations to be 394.\82\ 
These stations are non-profit, and therefore considered to be small 
entities.\83\ There are also 2,382 low power television stations, 
including Class A stations.\84\ 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.
---------------------------------------------------------------------------

    \82\ 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.
    \83\ See generally 5 U.S.C. 601(4), (6).
    \84\ 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.
---------------------------------------------------------------------------

    18. Radio Broadcasting.
    This Economic Census category ``comprises establishments primarily 
engaged in broadcasting aural programs by radio to the public. 
Programming may originate in their own studio, from an affiliated 
network, or from external sources.'' \85\ 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.\86\ 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.\87\ 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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    \85\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \86\ 13 CFR 121.201, NAICS code 515112.
    \87\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
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    19. In assessing whether a business concern qualifies as small 
under the above size standard, business affiliations must be 
included.\88\ In addition, to be determined to be a ``small business,'' 
the entity may not be dominant in its field of operation.\89\ 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.
---------------------------------------------------------------------------

    \88\ ``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).
    \89\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------

    20. 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.\90\ 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.\91\ 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.
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    \90\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \91\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US-51SSSZ5&prodType=Table.
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    21. 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.\92\ Industry data 
indicate that there are currently 4,413 active cable systems in the 
United States.\93\ Of this total, all but ten cable operators 
nationwide are small under the 400,000-subscriber size standard.\94\ In 
addition, under the Commission's rate regulation rules, a ``small 
system'' is a cable system serving 15,000 or fewer subscribers.\95\ 
Current Commission records show 4,413 cable systems nationwide.\96\ 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.\97\ Thus, under this standard as well, we estimate that most 
cable systems are small entities.
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    \92\ 47 CFR 76.901(e).
    \93\ See Eighteenth Competition Report, 32 FCC Rcd at 584, para. 
39 (citing the Commission's Cable Operations and Licensing Systems 
(COALS) database).
    \94\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2017).
    \95\ 47 CFR 76.901(c).
    \96\ See footnote 2, supra.
    \97\ August 5, 2015 report from the Media Bureau based on its 
research in COALS. See www.fcc.gov/coals.
---------------------------------------------------------------------------

    22. 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.'' \98\ There are approximately 53 million cable video 
subscribers in the United

[[Page 36466]]

States today.\99\ 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.\100\ Based on available data, 
we find that all but nine incumbent cable operators are small entities 
under this size standard.\101\ 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.\102\ 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.
---------------------------------------------------------------------------

    \98\ 47 CFR 76.901 (f) and notes ff. 1, 2, and 3.
    \99\ See NCTA Industry Data, Cable's Customer Base, available at 
https://www.ncta.com/industry-data (last visited July 6, 2017).
    \100\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \101\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2018).
    \102\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's 
finding that the operator does not qualify as a small cable operator 
pursuant to section 76.901(f) of the Commission's rules. See 47 CFR 
76.901(f).
---------------------------------------------------------------------------

    23. Direct Broadcast Satellite (DBS) Service. DBS Service is a 
nationally distributed subscription service that delivers video and 
audio programming via satellite to a small parabolic dish antenna at 
the subscriber's location. DBS is now included in SBA's economic census 
category ``Wired Telecommunications Carriers.'' The Wired 
Telecommunications Carriers industry comprises establishments primarily 
engaged in operating and/or providing access to transmission facilities 
and infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single technology 
or combination of technologies. Establishments in this industry use the 
wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services, wired (cable) audio and video programming 
distribution; and wired broadband internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry.\103\ The SBA determines that a wireline business is 
small if it has fewer than 1500 employees.\104\ 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.\105\ 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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    \103\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \104\ NAICS code 517110; 13 CFR 121.201.
    \105\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
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    24. 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.\106\ 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.\107\ 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.\108\ Thus, most ``All Other 
Telecommunications'' firms potentially affected by the rules adopted 
can be considered small.
---------------------------------------------------------------------------

    \106\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
    \107\ 13 CFR 121.201; NAICS code 517919.
    \108\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    25. 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.\109\ 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.
---------------------------------------------------------------------------

    \109\ See 47 CFR 52.101(b).
---------------------------------------------------------------------------

    26. 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\110\ and Wireless Telecommunications Carriers (except 
satellite).\111\
---------------------------------------------------------------------------

    \110\ 13 CFR 121.201, NAICS code 517110.
    \111\ 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

    27. 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.\112\ 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.\113\ 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.\114\ Based 
on that data, we conclude that most Carrier RespOrgs that operated with 
wireline-based technology are small.
---------------------------------------------------------------------------

    \112\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \113\ 13 CFR 120,201, NAICS code 517110.
    \114\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    28. 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

[[Page 36467]]

airwaves, such as cellular services, paging services, wireless internet 
access, and wireless video services.\115\ The appropriate size standard 
under SBA rules is that such a business is small if it has 1,500 or 
fewer employees.\116\ 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.\117\ Based on that data, we 
conclude that most Carrier RespOrgs that operated with wireless-based 
technology are small.
---------------------------------------------------------------------------

    \115\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \116\ 13 CFR 120.201, NAICS code 517120.
    \117\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    29. 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'' \118\ and ``Other Management Consulting 
Services.'' \119\
---------------------------------------------------------------------------

    \118\ 13 CFR 120.201, NAICS code 541890.
    \119\ 13 CFR 120.201, NAICS code 541618.
---------------------------------------------------------------------------

    30. 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.\120\ The SBA has established a size standard for this 
industry as annual receipts of $15 million dollars or less.\121\ 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.\122\ Based on that data we conclude that most 
Non-Carrier RespOrgs who provide TFN-related advertising services are 
small.
---------------------------------------------------------------------------

    \120\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \121\ 13 CFR 120.201, NAICS code 541890.
    \122\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    31. The U.S. Census defines Other Management Consulting Services as 
establishments primarily engaged in providing management consulting 
services (except administrative and general management consulting; 
human resources consulting; marketing consulting; or process, physical 
distribution, and logistics consulting). Establishments providing 
telecommunications or utilities management consulting services are 
included in this industry.\123\ The SBA has established a size standard 
for this industry of $15 million dollars or less.\124\ 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.\125\ Based on this data, we conclude that most non-
carrier RespOrgs who provide TFN-related management consulting services 
are small.\126\
---------------------------------------------------------------------------

    \123\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \124\ 13 CFR 120.201, NAICS code 514618.
    \125\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
    \126\ 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.
---------------------------------------------------------------------------

    32. 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.\127\
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    \127\ Email from Jennifer Blanchard, Somos, July 1, 2016.
---------------------------------------------------------------------------

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

    33. 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

    34. 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.\128\
---------------------------------------------------------------------------

    \128\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

    35. This Report and Order adopts new tiers in assessing regulatory 
fees for submarine cable systems. There should not be a significant 
impact on small entities because the fee is based on the number of 
systems and would therefore reflect the size of the entity. 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 
has increased the de minimis threshold to $1,000, which will impact 
many small entities that pay regulatory fees. This increase in the de 
minimis threshold to $1,000 will relieve regulatees both financially 
and administratively. 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

    None.

V. Ordering Clause

    36. Accordingly, it is ordered that, pursuant to Section 9(a), (b), 
(e), (f), and (g) of the Communications Act of 1934, as amended, 47 
U.S.C. 159(a), (b), (e), (f), and (g), this Report and Order is hereby 
adopted.

Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2018-15651 Filed 7-27-18; 8:45 am]
 BILLING CODE 6712-01-P