[Federal Register Volume 83, Number 181 (Tuesday, September 18, 2018)]
[Rules and Regulations]
[Pages 47079-47097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19548]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 18-175; FCC 18-126]


Assessment and Collection of Regulatory Fees for Fiscal Year 2018

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 $322,035,000 that Congress has 
required the Commission to collect for fiscal year 2018. 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 18, 2018, except for the amendment to Sec.  
1.1940, which is effective October 1, 2018. To avoid penalties and 
interest, regulatory fees should be paid by the due date of September 
25, 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 Report 
and Order, FCC 18-126, MD Docket No. 18-175, adopted on August 28, 2018 
and released on August 29, 2018. 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 
website 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

    1. This Report and Order adopts a schedule of regulatory fees to 
assess and collect $322,035,000 in regulatory fees for fiscal year (FY) 
2018, pursuant to section 9 \2\ of the Communications Act of 1934, as 
amended, and the Commission's FY 2018 Appropriation.\3\ The schedule of 
regulatory fees for FY 2018 adopted herein is attached in Table 4. The 
regulatory fees for all payors are due in September 2018.
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    \2\ 47 U.S.C. 159. Although the Repack Airwaves Yielding Better 
Access for Users of Modern Services Act of 2018, or the RAY BAUM'S 
Act of 2018, amended sections 8 and 9 and added section 9A to the 
Communications Act, those provisions do not become effective until 
October 1, 2018. Consolidated Appropriations Act, 2018, Public Law 
Number 115-141, 132 Stat. 1084, Division P--RAY BAUM's Act of 2018, 
Title I, 103 (2018).
    \3\ Consolidated Appropriations Act, 2018, Division E--Financial 
Services and General Government Appropriations Act, 2018, Title V--
Independent Agencies, Public Law 115-141 (March 23, 2018) (FCC FY 
2018 Appropriation).
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    2. Additionally, we amend our rules in accordance with the 
directives of the RAY BAUM'S Act regarding the collection of delinquent 
debts.\4\ This rule change will become effective on October 1, 2018.
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    \4\ See supra note 1.
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III. Background

    3. The Commission is required by Congress to assess regulatory fees 
each year in an amount that can reasonably be expected to equal the 
amount of its appropriation.\5\ Regulatory fees, mandated by Congress, 
are collected ``to recover the costs of . . . enforcement activities, 
policy and rulemaking activities, user information services, and 
international activities.'' \6\ Regulatory fees are to ``be derived by 
determining the full-time equivalent number of employees performing'' 
these activities, ``adjusted to take into account factors that are 
reasonably related to the benefits provided to the payer of the fee by 
the Commission's activities. . . . .'' \7\ Regulatory fees recover 
direct costs, such as salary and expenses; indirect costs, such as 
overhead functions; and support costs, such as rent, utilities, and 
equipment.\8\ Regulatory fees also cover the costs incurred in 
regulating entities that are statutorily exempt from paying regulatory 
fees,\9\ entities whose regulatory fees are waived,\10\ and entities 
providing services for which we do not assess regulatory fees.
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    \5\ 47 U.S.C. 159(b)(1)(B).
    \6\ 47 U.S.C. 159(a).
    \7\ 47 U.S.C. 159(b)(1)(A).
    \8\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2004, Report and Order, 19 FCC Rcd 11662, 11666, paragraph 11 (2004) 
(FY 2004 Report and Order), 69 FR 41028 (July 7, 2004).
    \9\ For example, governmental and nonprofit entities are exempt 
from regulatory fees under section 9(h). 47 U.S.C. 159(h); 47 CFR 
1.1162.
    \10\ 47 CFR 1.1166.
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    4. Congress sets the amount of regulatory fees the Commission must 
collect each year in the Commission's fiscal year appropriations. 
Section 9(a)(2) of the Communications Act requires the Commission to 
collect fees sufficient to offset the amount appropriated.\11\ To 
calculate regulatory fees, the Commission allocates the total 
collection target across all regulatory fee categories. The allocation 
of fees to fee categories is based on the Commission's calculation of 
Full Time Employees (FTEs) in each regulatory fee category.\12\ FTEs 
are classified as ``direct'' if the employee is in one of the four 
``core'' bureaus; otherwise, that employee is considered an 
``indirect'' FTE.\13\ The

[[Page 47080]]

total FTEs for each fee category includes the direct FTEs associated 
with that category, plus a proportional allocation of indirect 
FTEs.\14\ The Commission then allocates the total amount to be 
collected among the various regulatory fee categories within each of 
the core bureaus. Each regulatee within a fee category pays its 
proportionate share based on an objective measure (e.g., revenues or 
number of subscribers).\15\ These calculations are illustrated in Table 
3. The sources for the unit estimates that are used in these 
calculations are listed in Table 5.
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    \11\ 47 U.S.C. 159(a)(2).
    \12\ One FTE 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.
    \13\ The core bureaus, which have the direct FTEs, are the 
Wireline Competition Bureau (124), Wireless Telecommunications 
Bureau (101), Media Bureau (135), and part of the International 
Bureau (24). The indirect FTEs are the employees from the following 
bureaus and offices: Enforcement Bureau (203), Consumer & 
Governmental Affairs Bureau (136), Public Safety and Homeland 
Security Bureau (104), part of the International Bureau (72), part 
of the Wireline Competition Bureau (38), Chairman and Commissioners' 
offices (15), Office of the Managing Director (149), Office of 
General Counsel (74), Office of the Inspector General (46), Office 
of Communications Business Opportunities (8), Office of Engineering 
and Technology (73), Office of Legislative Affairs (9), Office of 
Strategic Planning and Policy Analysis (15), Office of Workplace 
Diversity (5), Office of Media Relations (14), and Office of 
Administrative Law Judges (4).
    \14\ The Commission observed in the FY 2013 Report and Order 
that ``the high percentage of the indirect FTEs is indicative of the 
fact that many Commission activities and costs are not limited to a 
particular fee category and instead benefit the Commission as a 
whole.'' See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2013, Report and Order, 28 FCC Rcd 12351, 12357, paragraph 17 
(2013) (FY 2013 Report and Order), 78 FR 52433 (Aug. 23, 2013).
    \15\ See Procedures for Assessment and Collection of Regulatory 
Fees, Notice of Proposed Rulemaking, 27 FCC Rcd 8458, 8461-62, 
paragraphs 8-11 (2012) (FY 2012 NPRM), 77 FR 29275 (May 17, 2012).
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    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.\16\ As part of its annual review, the Commission 
also regularly seeks to improve the regulatory fee process.\17\
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    \16\ 47 U.S.C. 159(b)(1)(B).
    \17\ In the FY 2013 Report and Order, the Commission adopted 
updated FTE allocations to more accurately reflect the number of 
FTEs working on regulation and oversight of regulatees in the fee 
categories. FY 2013 Report and Order, 28 FCC Rcd at 12354-58, 
paragraphs 10-20. This was recommended in a report issued by the 
Government Accountability Office (GAO) in 2012. See GAO ``Federal 
Communications Commission Regulatory Fee Process Needs to be 
Updated,'' GAO-12-686 (August 2012) (GAO Report) at 36, http://www.gao.gov/products/GAO-12-686. The Commission has since updated 
the FTE allocations annually. In addition, the Commission 
reallocated some FTEs from the International Bureau as indirect; 
combined the UHF and VHF television stations into one regulatory fee 
category; and added internet Protocol Television (IPTV) to the cable 
television regulatory fee category. FY 2013 Report and Order, 28 FCC 
Rcd at 12355-63, paragraphs 13-33.
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    6. In the FY 2018 Notice of Proposed Rulemaking, the Commission 
proposed to collect $322,035,000 in regulatory fees for FY 2018 and 
sought comment on a detailed proposed fee schedule.\18\ The Commission 
sought comment specifically on an incremental increase in the DBS 
regulatory fee \19\ and on proposed regulatory fees for terrestrial and 
satellite international bearer circuits for FY 2018.\20\ Additionally, 
the Commission sought comment on the methodology for calculating 
broadcast television station regulatory fees for FY 2019 \21\ and 
whether to adopt a new regulatory fee category for small satellites for 
FY 2019, and if so, what the appropriate regulatory fee for small 
satellites should be.\22\ We received 9 comments and four reply 
comments on the FY 2018 NPRM.\23\
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    \18\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2018, Report and Order and Notice of Proposed Rulemaking, FCC 
18-65 (2018) (FY 2018 NPRM), 83 FR 27846 (June 14, 2018).
    \19\ Id. paragraphs 17-20.
    \20\ Id. paragraphs 22-26.
    \21\ Id. paragraphs 27-31.
    \22\ Id. paragraphs 32-33. We defer consideration of a new 
regulatory fee category, and the appropriate regulatory fee, for 
small satellites until we adopt a definition of ``small satellites'' 
in the pending Small Satellite NPRM proceeding. See Streamlining 
Licensing Procedures for Small Satellites, IB Docket No. 18-86, 
Notice of Proposed Rulemaking, FCC 18-44 (2018) (Small Satellite 
NPRM), 83 FR 24064 (May 24, 2018).
    \23\ Commenters to the FY 2018 NPRM are listed in Appendix A.
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IV. Report and Order

    7. In this FY 2018 Report and Order, we adopt the regulatory fee 
schedule proposed in the FY 2018 NPRM for FY 2018, pursuant to section 
9 of the Communications Act, to collect $322,035,000 in regulatory 
fees. Of this amount, we project approximately $20.3 million (6.25 
percent of the total FTE allocation) in fees from the International 
Bureau regulatees; $84.7 million (26.3 percent of the total FTE 
allocation) in fees from the Wireless Telecommunications Bureau 
regulatees; $103.99 million (32.29 percent of the total FTE allocation) 
in fees from the Wireline Competition Bureau regulatees; and $113.22 
million (35.16 percent of the total FTE allocation) in fees from the 
Media Bureau regulatees. These regulatory fees are due in September 
2018. The schedule of regulatory fees for FY 2018 adopted herein is 
attached as Table 4.

FY 2018 Adjustment: Video Distribution Provider Regulatory Fees

    8. Among other activities, the Media Bureau oversees the regulation 
of video distribution providers like multichannel video programming 
distributors (MVPDs), i.e., regulated companies that make available for 
purchase, by subscribers or customers, multiple channels of video 
programming. The Media Bureau relies on a common pool of FTEs to carry 
out its oversight of MVPDs and other video distribution providers. 
These responsibilities include market modifications, local-into-local, 
must-carry and retransmission consent disputes, program carriage and 
program access complaints, over-the-air reception device declaratory 
rulings and waivers, media rule modernization, media ownership, and 
proposed transactions.\24\
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    \24\ See NCTA Comments at 6-7; ACA Comments at 4 & n.13.
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    9. For these activities in FY 2018, the Commission must collect 
$62,330,000 in regulatory fees from three categories of providers: 
Cable TV systems, IPTV providers, and direct broadcast satellite (DBS) 
operators. Although the Commission decided to assess cable TV systems 
and IPTV providers the same for regulatory fee purposes--assessing each 
provider based on its subscribership--the Commission took a different 
approach when it began to assess Media Bureau-based regulatory fees on 
DBS operators. Specifically, the Commission decided to phase in the new 
Media Bureau-based regulatory fee for DBS, starting at 12 cents per 
subscriber per year.\25\ At the same time, the Commission committed to 
updating the regulatory fee rate in future years ``as necessary for 
ensuring an appropriate level of regulatory parity and considering the 
resources dedicated to this new regulatory fee subcategory.'' \26\ 
Accordingly, the Commission increased the regulatory fee for DBS 
operators to 27 cents (including a three cent moving fee) and then 38 
cents (including a two cent moving fee) per subscriber per year, with 
the regulatory fees paid by DBS operators reducing those paid by other 
MVPDs.\27\
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    \25\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2015, Report and Order, 30 FCC Rcd 10268, 10277, paragraph 20 
(2015) (FY 2015 Report and Order), 80 FR 55775 (Sept. 17, 2015).
    \26\ FY 2015 Report and Order, 30 FCC Rcd at 10277, paragraph 
20.
    \27\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2017, Report and Order, 32 FCC Rcd 7057, 7067, paragraph 20 
(2017) (FY 2017 Report and Order), 82 FR 44322 (Sept. 22, 2017); 
Assessment and Collection of Regulatory Fees for Fiscal Year 2016, 
Report and Order, 31 FCC Rcd 10339, 10350, paragraph 30 (2016) (FY 
2016 Report and Order), 81 FR 65926 (Sept. 26, 2016).
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    10. For FY 2018, the Commission proposed to continue the transition 
by increasing the DBS regulatory fee rate to 48 cents per subscriber 
per year, thereby leaving other MVPDs with a regulatory fee of 77 cents 
per subscriber per year.\28\ Although a common pool of FTEs work on 
MVPD and related issues for DBS operators, IPTV providers, and cable TV 
systems, which some commenters argue justifies immediate parity in 
regulatory

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fees across these providers,\29\ we believe it prudent to adopt our 
proposal to increase such rates by less than one cent per subscriber 
per month, or 10 cents per subscriber per year. Doing so reflects the 
statutory imperative to take into account the FTEs devoted to oversight 
of this common category of regulatees, ``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, including . . . 
factors that the Commission determines are necessary in the public 
interest,'' \30\ such as our concern to mitigate the impact of 
increases on MVPDs should we move to immediate parity (which a 
regulatory fee of 67 cents per subscriber per year would achieve).\31\
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    \28\ FY 2018 NPRM at paragraph 19.
    \29\ ACA Comments at 1-3; NCTA Comments at 4.
    \30\ 47 U.S.C. 159(b)(1)(A).
    \31\ For similar reasons, we reject NCTA's request to increase 
the DBS regulatory fee to at least 60 cents per subscriber per year 
(and reduce the proposed cable television/IPTV regulatory fee to 72 
cents per subscriber per year) in order to accommodate cable 
television providers' chosen billing systems. See NCTA Comments at 8 
& n.23.
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    11. AT&T and DISH--the two DBS operators--reiterate several 
arguments against any increase in DBS regulatory fees that they have 
raised, and the Commission has rejected, in previous years. For 
example, AT&T and DISH claim that the proposed fee increase will result 
in ``rate shock,'' \32\ even though last year the Commission held an 
increase of about one penny per subscriber per month would not cause 
such shock.\33\ AT&T and DISH also claim the Commission cannot increase 
DBS regulatory fees without an allocation of ``additional FTEs to 
handle DBS matters,'' \34\ even though last year the Commission held 
that the DBS regulatory fee is based on the significant number of Media 
Bureau FTEs that work on MVPD issues that include DBS, ``not a 
particular number of FTEs focused solely on DBS'' or ``specific recent 
proceedings.'' \35\ For these reasons, we reject these arguments and 
agree with commenters that the continued participation of DBS operators 
in Commission proceedings, along with the use of a common pool of FTEs 
to oversee MVPD matters (including matters related to DBS operators in 
particular), justifies an increase in the DBS regulatory fee rate.
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    \32\ DISH and AT&T Comments at 9.
    \33\ See also FY 2017 Report and Order, 32 FCC Rcd at 7067, 
paragraph 21 (rejecting the claim that a regulatory fee increase of 
several cents per subscriber, per month would harm customers given 
that ``such an increase is a negligible faction of a monthly 
bill'').
    \34\ AT&T and DISH Comments at 3.
    \35\ FY 2017 Report and Order, 32 FCC Rcd at 7067-68, paragraphs 
22-23; see also FY 2015 NPRM and Report and Order, 30 FCC Rcd 5354, 
5369, paragraph 33 (2015) (FY 2015 NPRM and Report and Order), 80 FR 
37206 (June 30, 2015) (``We also reject the argument raised by 
DIRECTV and DISH that section 9 of the Act requires us to `show that 
DBS and cable occupy a comparable number of FTEs.' '').
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FY 2018 Adjustment: Terrestrial and Satellite International Bearer 
Circuits

    12. As discussed in the FY 2018 NPRM, the Commission has previously 
sought comment on adopting a tiered methodology for assessing 
terrestrial and satellite international bearer circuit regulatory fees, 
and we should have sufficient information from payors in September 2018 
to be able to consider a tiered rate structure for FY 2019.\36\ In the 
meantime, the Commission proposed to continue assessing terrestrial and 
satellite IBC regulatory fees on a per-circuit basis for FY 2018, using 
Gbps as the measurement rather than 64 kbps.\37\ CenturyLink observes 
that the proposed rate of $0.02 per circuit in Appendix B to the FY 
2018 NPRM used 64 kbps instead of Gbps.\38\ We agree with CenturyLink 
that the measurement listed in the FY 2018 NPRM should have been Gbps 
instead of 64 kbps, and we are therefore adopting the proposed per-
circuit fee of $176, using Gbps, in lieu of 64 kbps. No commenter 
opposed this proposal.
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    \36\ See FY 2018 NPRM, paragraphs 22-26. SIA raises a number of 
arguments in opposition to a tiered methodology for assessing 
terrestrial and satellite IBC regulatory fees. See SIA Comments at 
1-2 (``SIA continues to oppose use of a tier-based system to 
calculate fees . . . . Instead, the Commission should reconsider 
exempting satellite IBCs from IBC [regulatory] fees or retain the 
current assessment method.); id. at 2-5. Because we do not adopt a 
tiered methodology at this time, we do not address SIA's arguments 
here.
    \37\ FY 2018 NPRM. paragraph 26.
    \38\ CenturyLink Comments at 1-2.
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FY 2019 Amendment: Broadcast Television Stations

    13. Full service television station licensees are subject to 
regulatory fee payments based on the market served. Historically, 
broadcast full service television stations pay regulatory fees based on 
the schedule of regulatory fees established in section 9(g) of the 
Communications Act, which consolidated stations into market groupings 
1-10, 11-25, 26-50, 51-100, and remaining markets.\39\ The Commission 
subsequently established a separate fee category for broadcast 
television satellite stations.\40\ The Commission uses Nielsen 
Designated Market Areas (DMAs) to define the market a station serves. 
For FY 2017, the regulatory fees for full service stations ranged from 
$1,725 for satellite stations to $59,750 for stations in markets 1-10.
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    \39\ 47 U.S.C. 159(g).
    \40\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 1995, Report and Order, 10 FCC Rcd 13512, 13534, paragraph 60 
(1995), 60 FR 34004 (June 29, 1995).
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    14. In the FY 2018 NPRM, we sought comment on whether we could more 
accurately ascertain the actual market served by a station for purposes 
of assessing regulatory fees by examining the actual population covered 
by the station's contours rather than using DMAs.\41\ Specifically we 
sought comment on whether, for FY 2019 and going forward, regulatory 
fees should be assessed for full-power broadcast television stations 
based on the population covered by the station's contour, instead of 
DMAs.\42\ No commenter opposed this proposal. In the FY 2018 NPRM, we 
also sought comment on whether to phase in the implementation of this 
methodology over a two-year, or longer, period of time.\43\ In order to 
facilitate the transition to this new fee structure, for FY 2019, we 
plan to adopt a fee based on an average of the current DMA methodology 
and the population covered by a full-power broadcast station's contour. 
Thereafter, in 2020, we plan to assess regulatory fees for full-power 
broadcast stations based on the population covered by the station's 
contour. Such an approach is consistent with the methodology used for 
AM and FM broadcasters, in which fees are based on population served 
and the class of service based on the signal contours. In addition, 
this approach addresses concerns about the assessment of regulatory 
fees on broadcast television satellite stations serving small markets 
at the fringe of larger DMAs.\44\ The population data for broadcasters' 
service areas will be extracted annually from the TVStudy database, 
based on a station's projected noise-limited service contour, 
consistent with our rules,\45\ and we will enable broadcasters to 
review population data for their service area in our annual regulatory 
fee NPRM. We will multiply the population by a factor for which we will 
seek comment in the annual regulatory fee NPRM, e.g., 0.63 cents 
($.0063).
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    \41\ FY 2018 NPRM at paragraph 28.
    \42\ FY 2018 NPRM at paragraph 28.
    \43\ FY 2018 NPRM at paragraph 28.
    \44\ See, e.g., FY 2017 NPRM, 32 FCC Rcd at 4534-36, paragraphs 
20-22, 82 FR 26019 (June 6, 2017) (discussing concerns about the 
regulatory fees assessed on broadcast satellite television stations 
serving small markets at the fringe of larger DMAs).
    \45\ 47 CFR 73.622(e).
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    15. The adoption of these methodologies for assessing regulatory 
fees for broadcast television stations is a permitted amendment as 
defined in

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section 9(b)(3) of the Act,\46\ and pursuant to section 9(b)(4)(B), it 
must be submitted to Congress at least 90 days before it would become 
effective.\47\ Therefore, for FY 2018, we will assess regulatory fees 
for all broadcast television stations using the same methodology as we 
did for FY 2017.\48\ The regulatory fees for broadcast television 
stations for FY 2018 are in Table 4.
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    \46\ 47 U.S.C. 159(b)(3).
    \47\ 47 U.S.C. 159(b)(4)(B).
    \48\ See e.g., FY 2018 NPRM at Appendix H.
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V. Order--Collection Costs for Regulatory and Application Fees

    16. The Commission's rules requires the assessment of 
administrative costs incurred for processing and handling delinquent 
debts.\49\ However, the RAY BAUM'S Act amended the Communications Act, 
in relevant part, prohibiting the Commission from assessing its 
administrative costs of collecting delinquent regulatory and 
application fee debt (or related penalties), effective October 1, 
2018.\50\ Therefore, we amend our rules to reflect these statutory 
changes.\51\ This rule change will become effective on October 1, 2018.
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    \49\ 47 CFR 1.1940(c). This provision implements 31 U.S.C. 
3717(e), part of the Debt Collection Improvement Act.
    \50\ New section 9A(c)(2) requires the Commission to charge 
interest at the rate set forth in 31 U.S.C. 3717 on delinquent 
regulatory and application fee debt as well as the 25 percent 
penalty prescribed in new section 9A(c)(1). However, new section 
9A(c)(2) provides that section 3717 shall not otherwise apply to 
such a fee or penalty. Thus, while new section 9A(c)(2) of the 
Communications Act leaves intact those parts of Sec.  1.1940 of the 
Commission's rules pertaining to interest charges, the Commission is 
no longer authorized to assess its administrative costs on these 
delinquent debts.
    \51\ See ``Final Rules'' section at the end of this document 
(amending Sec.  1.1940(c) of the Commission's rules).
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    17. We find good cause under section 553(b)(B) of the 
Administrative Procedure Act \52\ to adopt this change without prior 
notice and comment. Section 553(b)(B) provides that notice and public 
comment procedures do not apply when ``impracticable, unnecessary, or 
contrary to the public interest.'' New section 9A of the Communications 
Act is clear in its directive that the Commission must cease applying 
to regulatory and application fees or penalties the provisions of 
section 3717 of Title 31, United States Code, that do not involve 
interest rates. The Commission is thus afforded no discretion to apply 
such provisions of section 3717 to such fees or penalties because its 
prior authority has been eliminated by statute. As a result, prior 
notice or comment is unnecessary.\53\
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    \52\ 5 U.S.C. 553(b)(B).
    \53\ The Commission previously has applied the unnecessary prong 
to encompass rule amendments that involve little or no exercise of 
agency discretion. See, e.g., Amendment of Parts 0, 1, 73, and 74 of 
the Commission's Rules, Order, 26 FCC Rcd 13538, 13544, 13539-41, 
13543, 13545, paragraphs 4-5, 10, 15 (OMD 2011), 76 FR 70904 (Nov. 
16, 2011) (deleting or amending obsolete rule provisions, including 
those superseded by an Act of Congress).
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VI. Procedural Matters

Broadcast Television Licenses, Post-Incentive Auction

    18. On March 29, 2016, the Commission commenced the incentive 
auction to allow broadcast television stations to make their spectrum 
available for wireless broadband licensees. On April 13, 2017, the 
Commission released a Public Notice formally closing the auction \54\ 
and beginning the 39-month post-auction transition period during which 
some broadcast television stations will transition to new channel 
assignments and other stations will go off the air. We remind licensees 
that those who held a broadcast television station license on October 
1, 2017 are responsible for FY 2018 regulatory fees for that 
license.\55\ Licensees who have relinquished their licenses by 
September 30, 2017 are not responsible for FY 2018 regulatory fees for 
the cancelled license.\56\
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    \54\ Incentive Auction Closing and Channel Reassignment Public 
Notice, Public Notice, 32 FCC Rcd 2786 (MB, WTB 2017).
    \55\ See ``Standard Fee Calculation and Payment Dates,'' 
paragraph 20, infra.
    \56\ Cancelled licenses from May 31, 2017 through September 30, 
2017 are, according to the Commission's records, the following call 
signs: KSPR, WIFR, WAGT, WDLP-CD, WEMM-CD, KMMA-CD, WAZF-CD, WLPH-
CD, WQVC-CD, WQCH-CD, WBOA-CD, WMUN-CD, WTSD-CD, WATA-CD, WHTV, 
WMEI, WWIS-CD.
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Payment of Regulatory Fees

1. Checks Are Not Accepted for Payment of Annual Regulatory Fees
    19. 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.
2. Credit Card Transaction Levels
    20. 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 is 
$24,999.99.\57\ Transactions greater than $24,999.99 will be rejected. 
This limit applies to single payments or bundled payments of more than 
one bill. Multiple transactions to a single agency in one day may be 
aggregated and treated as a single transaction subject to the 
$24,999.99 limit. Customers who wish to pay an amount greater than 
$24,999.99 should consider available electronic alternatives such as 
Visa or MasterCard debit cards, ACH debits from a bank account, and 
wire transfers. Each of these payment options is available after filing 
regulatory fee information in Fee Filer. Further details will be 
provided regarding payment methods and procedures at the time of FY 
2018 regulatory fee collection in Fact Sheets, available at https://www.fcc.gov/regfees.
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    \57\ 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
    21. During the fee season for collecting FY 2018 regulatory fees, 
regulatees can pay their fees by credit card through Pay.gov,\58\ ACH, 
debit card,\59\ or by wire transfer. Additional filing and payment 
instructions are posted on the Commission's website at https://www.fcc.gov/licensing-databases/fees/regulatory-fees. 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

[[Page 47083]]

initiated and completed before the deadline. Complete instructions for 
making wire payments are posted at https://www.fcc.gov/licensing-databases/fees/wire-transfer.
---------------------------------------------------------------------------

    \58\ 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.
    \59\ 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
    22. Under the Commission's de minimis rule for regulatory fee 
payments, a regulatee is exempt from paying regulatory fees if the sum 
total of all of its annual regulatory fee liabilities is $1,000 or less 
for the fiscal year. The de minimis threshold applies only to filers of 
annual regulatory fees, not regulatory fees paid through multi-year 
filings, and it is not a permanent exemption. Each regulatee will need 
to reevaluate the total annual fee liability each fiscal year to 
determine whether they meet the de minimis exemption.
5. Standard Fee Calculations and Payment Dates
    23. 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, 2017 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, 2017. In 
instances where a permit or license is transferred or assigned after 
October 1, 2017, responsibility for payment rests with the holder of 
the permit or license as of the fee due date.
     Wireline (Common Carrier) Services: Regulatory fees must 
be paid for authorizations that were granted on or before October 1, 
2017. In instances where a permit or license is transferred or assigned 
after October 1, 2017, 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.\60\ For Responsible 
Organizations (RespOrgs) that manage Toll Free Numbers (TFN), 
regulatory fees should be paid on all working, assigned, and reserved 
toll free numbers as well as toll free numbers in any other status as 
defined in Sec.  52.103 of the Commission's rules.\61\ The unit count 
should be based on toll free numbers managed by RespOrgs on or about 
December 31, 2017.
---------------------------------------------------------------------------

    \60\ Audio bridging services are toll teleconferencing services.
    \61\ 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, 2017. The number of subscribers, units, 
or telephone numbers on December 31, 2017 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, 2017, 
responsibility for payment rests with the holder of the permit or 
license as of the fee due date.
     Wireless Services, Multi-year fees: The first eight 
regulatory fee categories in our Schedule of Regulatory Fees pay 
``small multi-year wireless regulatory fees.'' Entities pay these 
regulatory fees in advance for the entire amount period covered by the 
five-year or ten-year terms of their initial licenses, and pay 
regulatory fees again only when the license is renewed or a new license 
is obtained. We include these fee categories in our rulemaking to 
publicize our estimates of the number of ``small multi-year wireless'' 
licenses that will be renewed or newly obtained in FY 2018.
     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, 2017.\62\ Regulatory fees also must be paid for CARS 
licenses that were granted on or before October 1, 2017. In instances 
where a permit or license is transferred or assigned after October 1, 
2017, responsibility for payment rests with the holder of the permit or 
license as of the fee due date. For providers of Direct Broadcast 
Satellite (DBS) service and IPTV-based MVPDs, regulatory fees should be 
paid based on a subscriber count on or about December 31, 2017. In 
instances where a permit or license is transferred or assigned after 
October 1, 2017, responsibility for payment rests with the holder of 
the permit or license as of the fee due date.
---------------------------------------------------------------------------

    \62\ 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 2017, rather than on a count as of December 31, 
2017.
---------------------------------------------------------------------------

     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, 2017. In instances where a permit 
or license is transferred or assigned after October 1, 2017, 
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 for all systems that are licensed and 
operational as of October 1, 2017. The fee is based on circuit capacity 
as of December 31, 2017. In instances where a license is transferred or 
assigned after October 1, 2017, responsibility for payment rests with 
the holder of the license as of the fee due date. For regulatory fee 
purposes, the allocation in FY 2018 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 IBCs are to be 
paid based on active (used or leased) international bearer circuits as 
of December 31, 2017 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, entities must 
include circuits used by themselves or their affiliates. For these 
purposes, ``active circuits'' include backup and redundant circuits as 
of December 31, 2017 and include both common carrier and non-common 
carrier circuits for both terrestrial and satellite services. Whether 
circuits are used specifically for voice or data is not relevant for 
purposes of determining that they are active circuits.\63\ In instances 
where a permit or license is transferred or assigned after October 1, 
2017, responsibility for payment rests with the holder of the permit or 
license as of the fee due date based on circuit counts as of December 
31, 2017. For regulatory fee purposes, the allocation in FY 2018 will 
remain at 87.6 percent for submarine cable and 12.4 percent for 
satellite/terrestrial facilities.
---------------------------------------------------------------------------

    \63\ We encourage terrestrial and satellite service providers to 
seek guidance from the International Bureau's Telecommunications and 
Analysis Division to verify their particular IBC reporting processes 
to ensure that their calculation methods comply with our rules.
---------------------------------------------------------------------------

Commercial Mobile Radio Service (CMRS) and Mobile Services Assessments

    24. The Commission will compile data from the Numbering Resource 
Utilization Forecast (NRUF) report that is based on ``assigned'' 
telephone

[[Page 47084]]

number (subscriber) counts that have been adjusted for porting to net 
Type 0 ports (``in'' and ``out'').\64\ 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).
---------------------------------------------------------------------------

    \64\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 2005, Report and Order and Order on Reconsideration, 20 FCC Rcd 
12259, 12264, paragraphs 38-44 (2005).
---------------------------------------------------------------------------

    25. 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.\65\ 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.
---------------------------------------------------------------------------

    \65\ 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.
---------------------------------------------------------------------------

    26. 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, 2017), 
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.

Enforcement

    27. To be considered timely, regulatory fee payments must be made 
electronically by the payment due date for regulatory fees. Section 
9(c) of the Act requires us to impose a late payment penalty of 25 
percent of the unpaid amount to be assessed on the first day following 
the deadline for filing these fees.\66\ 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,\67\ 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.\68\ 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(c) of the 
Commission's rules.\69\ These administrative processing charges will be 
assessed on any delinquent FY 2018 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.
---------------------------------------------------------------------------

    \66\ 47 U.S.C. 159(c).
    \67\ See 47 CFR 1.1910.
    \68\ Delinquent debt owed to the Commission triggers the ``red 
light rule,'' which places a hold on the processing of pending 
applications, fee offsets, and pending disbursement payments. 47 CFR 
1.1910, 1.1911, 1.1912. In 2004, the Commission adopted rules 
implementing the requirements of the DCIA. See Amendment of Parts 0 
and 1 of the Commission's Rules, MD Docket No. 02-339, Report and 
Order, 19 FCC Rcd 6540 (2004), 69 FR 27843 (May 17, 2004); 47 CFR 
part 1, subpart O, Collection of Claims Owed the United States.
    \69\ 47 CFR 1.1940(c). As discussed in Part IV above, the 
amendment to Sec.  1.1940(c) of the Commission's rules that we adopt 
to reflect amendments to the Communications Act by the RAY BAUM'S 
Act does not take effect until October 1, 2018. Therefore, the 
Commission will assess administrative processing charges for failure 
to timely pay FY 2019 regulatory fees, which are due in September 
2018.
---------------------------------------------------------------------------

    28. In addition to financial penalties, section 9(c)(3) of the 
Act,\70\ and Sec.  1.1164(f) of the Commission's rules \71\ grant the 
FCC the authority to revoke authorizations for failure to pay 
regulatory fees in a timely fashion. Should a fee delinquency not be 
rectified in a timely manner the Commission may require the licensee to 
file with documented evidence within sixty (60) calendar days that full 
payment of all outstanding regulatory fees has been made, plus any 
associated penalties as calculated by the Secretary of Treasury in 
accordance with Sec.  1.1164(a) of the Commission's rules,\72\ or show 
cause why the payment is inapplicable or should be waived or deferred. 
Failure to provide such evidence of payment or to show cause within the 
time specified may result in revocation of the station license.\73\
---------------------------------------------------------------------------

    \70\ 47 U.S.C. 159(c)(3).
    \71\ 47 CFR 1.1164(f).
    \72\ 47 CFR 1.1164(a).
    \73\ See, e.g., Cortaro Broadcasting Corp., Order to Pay or Show 
Cause, 32 FCC Rcd 9336 (MB 2017).
---------------------------------------------------------------------------

    29. 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.\74\ 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).\75\
---------------------------------------------------------------------------

    \74\ See 47 CFR 1.1161(c), 1.1164(f)(5), and 1.1910.
    \75\ 47 U.S.C. 159.
---------------------------------------------------------------------------

Effective Date

6. Report and Order--FY 2018 Regulatory Fees
    30. 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 2018 fees 
before FY 2018 ends on September 30, 2018. 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.
7. Order--Collection Costs for Regulatory and Application Fees
    31. In our Order above, we amend Sec.  1.1940 of our rules and find 
that there

[[Page 47085]]

is good cause under 5 U.S.C. 553(b)(B) to adopt the clarification 
without following the notice and comment procedures of the 
Administrative Procedure Act.\76\ Similarly, under these circumstances, 
we find that these actions fall under the good cause exemption to the 5 
U.S.C. 553(d) effective date requirements and the clarification of 
Sec.  1.1940 of our rules will become effective on October 1, 2018.
---------------------------------------------------------------------------

    \76\ See supra Section V.
---------------------------------------------------------------------------

VII. Additional Tables

                                           Table 1--List of Commenters
----------------------------------------------------------------------------------------------------------------
                  Commenter                                            Abbreviated name
----------------------------------------------------------------------------------------------------------------
American Cable Assocation...................  ACA.
Astro Digital, US, Inc., Planet, Inc., and    Astro Digital, Planet, and Spire.
 Spire Global, Inc.
CenturyLink, Inc............................  CenturyLink.
DISH Network L.L.C. and AT&T Services, Inc..  DISH and AT&T.
Richard A. Golden...........................  Golden.
NCTA--The Internet and Television             NCTA.
 Association.
Satellite Industry Association..............  SIA.
Somos, Inc..................................  Somos.
University Small-Satellite Researchers......  Small-Satellite Researchers.
----------------------------------------------------------------------------------------------------------------


                    Table 2--List of Reply Commenters
------------------------------------------------------------------------
 
------------------------------------------------------------------------
AT&T Services, Inc....................  AT&T.
CenturyLink, Inc......................  CenturyLink.
EchoStar Satellite Operating            EchoStar.
 Corporation and Hughes Network
 Systems, LLC.
NCTA--The Internet & Television         NCTA and ACA.
 Assocation and the American Cable
 Association.
------------------------------------------------------------------------

    Regulatory fees for the categories shaded in gray 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 2018 Revenue Requirements and Pro-Rata Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              FY 2017      Pro-rated FY     Computed FY     Rounded FY
                 Fee category                   FY 2018 payment   Years       revenue      2018 revenue        2018            2018         Expected FY
                                                     units                   estimate       requirement   regulatory fee  regulatory fee   2018 revenue
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)........................               340       10         325,000          85,000              25              25          85,000
PLMRS (Shared use)...........................            12,500       10       1,600,000       1,250,000              10              10       1,250,000
Microwave....................................             7,750       10       2,950,000       1,937,500              25              25       1,937,500
Marine (Ship)................................             7,150       10       1,215,000       1,072,500              15              15       1,072,500
Aviation (Aircraft)..........................             4,000       10         420,000         400,000              10              10         400,000
Marine (Coast)...............................                75       10          60,000          30,000              40              40          30,000
Aviation (Ground)............................             1,000       10         220,000         200,000              20              20         200,000
AM Class A \1\...............................                63        1         305,500         266,175           4,214           4,225         266,175
AM Class B \1\...............................             1,523        1       3,807,500       3,274,450           2,162           2,150       3,274,450
AM Class C \1\...............................               872        1       1,348,500       1,177,200           1,352           1,350       1,177,200
AM Class D \1\...............................             1,503        1       4,476,000       3,907,800           2,592           2,600       3,907,800
FM Classes A, B1 & C3 \1\....................             3,166        1       9,371,250       8,152,450           2,582           2,575       8,152,450
FM Classes B, C, C0, C1 & C2 \1\.............             3,128        1      11,521,800      10,009,600           3,203           3,200      10,009,600
AM Construction Permits \2\..................                 9        1           5,550           4,950             550             550           4,950
FM Construction Permits \2\..................               109        1         110,740         105,185             965             965         105,185
Satellite TV.................................               126        1         217,350         189,000           1,497           1,500         189,000
Digital TV Mkt 1-10..........................               144        1       8,305,250       7,164,000          49,739          49,750       7,164,000
Digital TV Mkt 11-25.........................               140        1       5,898,275       5,243,000          37,455          37,450       5,243,000
Digital TV Mkt 26-50.........................               189        1       5,439,050       4,729,725          25,013          25,025       4,729,725
Digital TV Mkt 51-100........................               290        1       4,267,875       3,617,750          12,470          12,475       3,617,750
Digital TV Remaining Markets.................               389        1       1,807,475       1,594,900           4,099           4,100       1,594,900
Digital TV Construction Permits \2\..........                 3        1          14,775          12,300           4,100           4,100          12,300
LPTV/Translators/Boosters/Class A TV.........             3,989        1       1,741,930       1,515,820             378             380       1,515,820
CARS Stations................................               175        1         215,050         188,125           1,068           1,075         188,125
Cable TV Systems, including IPTV.............        61,000,000        1      58,900,000      46,970,000           .7658             .77      46,970,000
Direct Broadcast Satellite (DBS).............        32,000,000        1      12,350,000      15,360,000            .480             .48      15,360,000
Interstate Telecommunication Service            $34,600,000,000        1     111,740,000     100,686,000        0.002906         0.00291     100,686,000
 Providers...................................
Toll Free Numbers............................        33,200,000        1       3,924,000       3,320,000         0.10405            0.10       3,320,000
CMRS Mobile Services (Cellular/Public Mobile)       404,000,000        1      82,530,000      80,800,000           0.195            0.20      80,800,000
CMRS Messag. Services........................         1,000,000        1         168,000          80,000          0.0800           0.080          80,000
BRS/ \3\.....................................             1,175        1         696,000         567,050             600             600         705,000
LMDS.........................................               400        1         316,000         378,250             600             600         240,000
Per Gbps circuit Int'l Bearer Circuits                    2,831        1         901,680         685,102             176             176         685,102
 Terrestrial (Common and Non-Common) &
 Satellite (Common & Non-Common).............
Submarine Cable Providers (see chart in Table             41.19        1       5,660,261       4,959,228         120,405         120,400       4,959,035
 4) \4\......................................
Earth Stations...............................             3,400        1       1,224,000       1,105,000             326             325       1,105,000

[[Page 47086]]

 
Space Stations (Geostationary)...............                97        1      13,669,725      12,401,450         127,839         127,850      12,401,450
Space Stations (Non-Geostationary)...........                 7        1         947,450         859,425         122,776         122,775         859,425
    ****** Total Estimated Revenue to be       ................  .......     358,670,986     324,323,753  ..............  ..............     324,365,671
     Collected...............................
        ****** Total Revenue Requirement.....  ................  .......     356,710,992     322,035,000  ..............  ..............     322,035,000
            Difference.......................  ................  .......       1,959,994       2,288,753  ..............  ..............       2,330,671
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes on Table 3:
\1\ The fee amounts listed in the column entitled ``Rounded New FY 2018 Regulatory Fee'' constitute a weighted average broadcast regulatory fee by class
  of service. The actual FY 2018 regulatory fees for AM/FM radio station are listed on a grid located at the end of Table 4.
\2\ 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.
\3\ MDS/MMDS category was renamed Broadband Radio Service (BRS). See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate
  the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands, Report & Order
  and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165, 14169, paragraph 6 (2004), 69 FR 72048 (Dec. 10, 2004).
\4\ 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 (2008), 73 FR 5028 (Aug. 26, 2008) and Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC
  Rcd 4208 (2009), 74 FR 22104 (May 12, 2009).

    Regulatory fees for the categories shaded in gray 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 4--FY 2018 Regulatory Fees
------------------------------------------------------------------------
                                                             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,                 .08
 22, 24 and 90).......................................
Broadband Radio Service (formerly MMDS/MDS) (per                     600
 license) (47 CFR part 27)............................
Local Multipoint Distribution Service (per call sign)                600
 (47 CFR part 101)....................................
AM Radio Construction Permits.........................               550
FM Radio Construction Permits.........................               965
Digital TV (47 CFR part 73) VHF and UHF Commercial:
    Markets 1-10......................................            49,750
    Markets 11-25.....................................            37,450
    Markets 26-50.....................................            25,025
    Markets 51-100....................................            12,475
    Remaining Markets.................................             4,100
    Construction Permits..............................             4,100
Satellite Television Stations (All Markets)...........             1,500
Low Power TV, Class A TV, TV/FM Translators & Boosters               380
 (47 CFR part 74).....................................
CARS (47 CFR part 78).................................             1,075
Cable Television Systems (per subscriber) (47 CFR part               .77
 76), Including IPTV..................................
Direct Broadcast Service (DBS) (per subscriber) (as                  .48
 defined by section 602(13) of the Act)...............
Interstate Telecommunication Service Providers (per               .00291
 revenue dollar)......................................
Toll Free (per toll free subscriber) (47 CFR 52.101(f)               .10
 of the rules)........................................
Earth Stations (47 CFR part 25).......................               325
Space Stations (per operational station in                       127,850
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100).................................................
Space Stations (per operational system in non-                   122,775
 geostationary orbit) (47 CFR part 25)................
International Bearer Circuits--Terrestrial/Satellites                176
 (per Gbps circuit)...................................
Submarine Cable Landing Licenses Fee (per cable          See Table Below
 system)..............................................
------------------------------------------------------------------------


[[Page 47087]]


                                                          FY 2018 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................................................            $880            $635            $550            $605            $965          $1,100
25,001-75,000...........................................          $1,325            $950            $825            $910          $1,450          $1,650
75,001-150,000..........................................          $1,975          $1,425          $1,250          $1,350          $2,175          $2,475
150,001-500,000.........................................          $2,975          $2,150          $1,850          $2,050          $3,250          $3,725
500,001-1,200,000.......................................          $4,450          $3,225          $2,775          $3,050          $4,875          $5,575
1,200,001-3,000,00......................................          $6,700          $4,825          $4,175          $4,600          $7,325          $8,350
3,000,001-6,000,00......................................         $10,025          $7,225          $6,275          $6,900         $11,000         $12,525
>6,000,000..............................................         $15,050         $10,850          $9,400         $10,325         $16,500         $18,800
--------------------------------------------------------------------------------------------------------------------------------------------------------


     FY 2018 International Bearer Circuits--Submarine Cable Systems
------------------------------------------------------------------------
  Submarine cable systems (capacity as of December 31,    Fee amount for
                          2017)                               FY 2018
------------------------------------------------------------------------
Less than 50 Gbps.......................................          $9,850
50 Gbps or greater, but less than 250 Gbps..............          19,725
250 Gbps or greater, but less than 1,000 Gbps...........          39,425
1,000 Gbps or greater, but less than 4,000 Gbps.........          78,875
4,000 Gbps or greater...................................         157,750
------------------------------------------------------------------------

Table 5--Sources of Payment Unit Estimates for FY 2018

    In order to calculate individual service fees for FY 2018, we 
adjusted FY 2017 payment units for each service to more accurately 
reflect expected FY 2018 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 2018 estimates with actual FY 2017 
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 2018 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 2018 payment units are based on FY 2017 
actual payment units, it does not necessarily mean that our FY 2018 
projection is exactly the same number as in FY 2017. We have either 
rounded the FY 2018 number or adjusted it slightly to account for these 
variables.

----------------------------------------------------------------------------------------------------------------
              Fee category                                  Sources of payment unit estimates
----------------------------------------------------------------------------------------------------------------
Land Mobile (All), Microwave, Marine     Based on Wireless Telecommunications Bureau (WTB) projections of new
 (Ship & Coast), Aviation (Aircraft &     applications and renewals taking into consideration existing
 Ground), Domestic Public Fixed.          Commission licensee data bases. Aviation (Aircraft) and Marine (Ship)
                                          estimates have been adjusted to take into consideration the licensing
                                          of portions of these services on a voluntary basis.
CMRS Cellular/Mobile Services..........  Based on WTB projection reports, and FY 17 payment data.
CMRS Messaging Services................  Based on WTB reports, and FY 17 payment data.
AM/FM Radio Stations...................  Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment
                                          units.
Digital TV Stations....................  Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment
(Combined VHF/UHF units)...............   units.
AM/FM/TV Construction Permits..........  Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment
                                          units.
LPTV, Translators and Boosters, Class A  Based on CDBS data, adjusted for exemptions, and actual FY 2017 payment
 Television.                              units.
BRS (formerly MDS/MMDS)................  Based on WTB reports and actual FY 2017 payment units.
LMDS...................................  Based on WTB reports and actual FY 2017 payment units.
Cable Television Relay Service (CARS)    Based on data from Media Bureau's COALS database and actual FY 2017
 Stations.                                payment units.
Cable Television System Subscribers,     Based on publicly available data sources for estimated subscriber
 Including IPTV Subscribers.              counts and actual FY 2017 payment units.
Interstate Telecommunication Service     Based on FCC Form 499-Q data for the four quarters of calendar year
 Providers.                               2017, the Wireline Competition Bureau projected the amount of calendar
                                          year 2017 revenue that will be reported on 2018 FCC Form 499-A
                                          worksheets due in April, 2018.
Earth Stations.........................  Based on International Bureau (``IB'') licensing data and actual FY
                                          2017 payment units.
Space Stations (GSOs & NGSOs)..........  Based on IB data reports and actual FY 2017 payment units.
International Bearer Circuits..........  Based on IB reports and submissions by licensees, adjusted as
                                          necessary.

[[Page 47088]]

 
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 of the
     Commission's rules to predict the distance to the principal
     community (70 dBu (decibel above 1 microVolt per meter) or 3.17 mV/
     m) contour for each of the 360 radials. The resulting distance to
     principal community contours were used to form a geographical
     polygon. Population counting was accomplished by determining which
     2010 block centroids were contained in the polygon. The sum of the
     population figures for all enclosed blocks represents the total
     population for the predicted principal community coverage area.
------------------------------------------------------------------------

Table 7--FY 2017 Schedule of Regulatory Fees

    Regulatory fees for the categories shaded in gray 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,                 .08
 22, 24 and 90).......................................
Broadband Radio Service (formerly MMDS/MDS) (per                     800
 license) (47 CFR part 27)............................
Local Multipoint Distribution Service (per call sign)
 (47 CFR part 101)....................................
800...................................................
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 Trans. & Boosters (47                430
 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
 of the rules)........................................
Earth Stations (47 CFR part 25).......................               360
Space Stations (per operational station in                       140,925
 geostationary orbit) (47 CFR part 25) also includes
 DBS Service (per operational station) (47 CFR part
 100).................................................

[[Page 47089]]

 
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          See Table Below
 system)..............................................
------------------------------------------------------------------------


                                      FY 2017 Radio Station Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                                                      FM Classes
            Population served             AM Class A  AM Class B  AM Class C  AM Class D  FM Classes   B, C, C0,
                                                                                          A, B1 & C3    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
----------------------------------------------------------------------------------------------------------------


 FY 2017 Regulatory Fees 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               17,175
                         Gbps
5 Gbps or greater, but less than 10 Gbps           34,350
10 Gbps or greater, but less than 20               68,725
                         Gbps
          20 Gbps or greater                      137,425
------------------------------------------------------------------------

VIII. Final Regulatory Flexibility Analysis

    32. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\77\ an Initial Regulatory Flexibility Analysis (IRFA) 
was included in the Notice of Proposed Rulemaking (NPRM).\78\ The 
Commission sought written public comment on these proposals including 
comment on the IRFA. This Final Regulatory Flexibility Analysis (FRFA) 
conforms to the IRFA.\79\
---------------------------------------------------------------------------

    \77\ 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).
    \78\ Assessment and Collection of Regulatory Fees for Fiscal 
Year 2017, Report and Order and Further Notice of Proposed 
Rulemaking, 32 FCC Rcd 7057 (2017), 82 FR 50598 (Nov. 1, 2017).
    \79\ 5 U.S.C. 604.
---------------------------------------------------------------------------

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

    33. In this Report and Order we adopt our proposal in the Notice of 
Proposed Rulemaking on collecting $322,035,000 in regulatory fees for 
FY 2018, pursuant to section 9 of the Communications Act of 1934, as 
amended (Communications Act or Act).\80\ These regulatory fees will be 
due in September 2018. 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.\81\ This Report and Order adopts the 
regulatory fees proposed in the Notice of Proposed Rulemaking.
---------------------------------------------------------------------------

    \80\ 47 U.S.C. 159.
    \81\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

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

    34. None.

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

    35. 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.\82\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \83\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\84\ 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.\85\ Nationwide, there are a total of 
approximately 27.9 million small businesses, according to the SBA.\86\
---------------------------------------------------------------------------

    \82\ 5 U.S.C. 603(b)(3).
    \83\ 5 U.S.C. 601(6).
    \84\ 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.''
    \85\ 15 U.S.C. 632.
    \86\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
---------------------------------------------------------------------------

    36. 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.

[[Page 47090]]

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.'' \87\ 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.\88\ 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.\89\ Thus, under 
this size standard, most firms in this industry can be considered 
small.
---------------------------------------------------------------------------

    \87\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \88\ See 13 CFR 120.201, NAICS code 517110.
    \89\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    37. 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.\90\ 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.\91\ The Commission therefore estimates that most 
providers of local exchange carrier service are small entities that may 
be affected by the rules adopted.
---------------------------------------------------------------------------

    \90\ 13 CFR 121.201, NAICS code 517110.
    \91\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    38. 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.\92\ According to Commission data, 3,117 firms 
operated in that year. Of this total, 3,083 operated with fewer than 
1,000 employees.\93\ 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.\94\ Of this total, an 
estimated 1,006 have 1,500 or fewer employees.\95\
---------------------------------------------------------------------------

    \92\ 13 CFR 121.201, NAICS code 517110.
    \93\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \94\ 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).
    \95\ Id.
---------------------------------------------------------------------------

    39. 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.\96\ 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.\97\ 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.\98\ Of these 1,442 carriers, 
an estimated 1,256 have 1,500 or fewer employees.\99\ 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.\100\ Also, 
72 carriers have reported that they are Other Local Service 
Providers.\101\ Of this total, 70 have 1,500 or fewer employees.\102\ 
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.
---------------------------------------------------------------------------

    \96\ 13 CFR 121.201, NAICS code 517110.
    \97\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \98\ See Trends in Telephone Service, at Table 5.3.
    \99\ Id.
    \100\ Id.
    \101\ Id.
    \102\ Id.
---------------------------------------------------------------------------

    40. 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.\103\ 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.\104\ According to internally developed Commission 
data, 359 companies reported that their primary telecommunications 
service activity was the provision of interexchange services.\105\ Of 
this total, an estimated 317 have 1,500 or fewer employees.\106\ 
Consequently, the Commission estimates that most interexchange service 
providers are small entities that may be affected by the rules adopted.
---------------------------------------------------------------------------

    \103\ 13 CFR 121.201, NAICS code 517110.
    \104\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \105\ See Trends in Telephone Service, at Table 5.3.
    \106\ Id.
---------------------------------------------------------------------------

    41. 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.\107\ 
Under the applicable SBA size standard, such a business is small if it 
has 1,500 or fewer employees.\108\ 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

[[Page 47091]]

employees.\109\ 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.\110\ All 193 carriers have 1,500 or fewer 
employees.\111\ Consequently, the Commission estimates that the 
majority of prepaid calling card providers are small entities that may 
be affected by the rules adopted.
---------------------------------------------------------------------------

    \107\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch.
    \108\ 13 CFR 121.201, NAICS code 517911.
    \109\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \110\ See Trends in Telephone Service, at Table 5.3.
    \111\ Id.
---------------------------------------------------------------------------

    42. 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.\112\ 
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.\113\ 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.\114\ Of this total, an estimated 211 have 1,500 or fewer 
employees.\115\ Consequently, the Commission estimates that the 
majority of local resellers are small entities that may be affected by 
the rules adopted.
---------------------------------------------------------------------------

    \112\ 13 CFR 121.201, NAICS code 517911.
    \113\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \114\ See Trends in Telephone Service, at Table 5.3.
    \115\ Id.
---------------------------------------------------------------------------

    43. 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.\116\ Under that size standard, such a business is small if 
it has 1,500 or fewer employees.\117\ 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.\118\ 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.\119\ Of this total, an estimated 
857 have 1,500 or fewer employees.\120\ Consequently, the Commission 
estimates that the majority of toll resellers are small entities.
---------------------------------------------------------------------------

    \116\ 13 CFR 121.201, NAICS code 517911.
    \117\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \118\ Id.
    \119\ Trends in Telephone Service at Table 5.3.
    \120\ Id.
---------------------------------------------------------------------------

    44. 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.\121\ 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.\122\ 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.\123\ Of these, an estimated 279 have 1,500 or fewer 
employees.\124\ Consequently, the Commission estimates that most Other 
Toll Carriers are small entities.
---------------------------------------------------------------------------

    \121\ 13 CFR 121.201, NAICS code 517110.
    \122\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \123\ Trends in Telephone Service at Table 5.3.
    \124\ Id.
---------------------------------------------------------------------------

    45. 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.\125\ 
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.\126\ Of this total, an estimated 261 have 1,500 
or fewer employees.\127\ Thus, using available data, we estimate that 
the majority of wireless firms can be considered small.
---------------------------------------------------------------------------

    \125\ NAICS code 517210. See http://www.census.gov/cgi-bin/ssd/
naics/naiscsrch.
    \126\ Trends in Telephone Service at Table 5.3.
    \127\ Id.
---------------------------------------------------------------------------

    46. 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.'' \128\ 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.\129\ 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.\130\ 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.\131\ We therefore 
estimate that the

[[Page 47092]]

majority of commercial television broadcasters are small entities.
---------------------------------------------------------------------------

    \128\ U.S. Census Bureau, 2012 NAICS code Economic Census 
Definitions, http://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \129\ 13 CFR 121.201, NAICS code 515120.
    \130\ 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.
    \131\ We recognize that BIA's estimate differs slightly from the 
FCC total.
---------------------------------------------------------------------------

    47. In assessing whether a business concern qualifies as small 
under the above definition, business (control) affiliations \132\ 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.
---------------------------------------------------------------------------

    \132\ ``[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).
---------------------------------------------------------------------------

    48. In addition, the Commission has estimated the number of 
licensed noncommercial educational television stations to be 394.\133\ 
These stations are non-profit, and therefore considered to be small 
entities.\134\ There are also 2,382 low power television stations, 
including Class A stations.\135\ 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.
---------------------------------------------------------------------------

    \133\ 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.
    \134\ See generally 5 U.S.C. 601(4), (6).
    \135\ 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.
---------------------------------------------------------------------------

    49. 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.'' \136\ 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.\137\ 
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.\138\ 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.
---------------------------------------------------------------------------

    \136\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \137\ 13 CFR 121.201, NAICS code 515112.
    \138\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    50. In assessing whether a business concern qualifies as small 
under the above size standard, business affiliations must be 
included.\139\ In addition, to be determined to be a ``small 
business,'' the entity may not be dominant in its field of 
operation.\140\ 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.
---------------------------------------------------------------------------

    \139\ ``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).
    \140\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------

    51. 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.\141\ 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.\142\ 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.
---------------------------------------------------------------------------

    \141\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \142\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US-51SSSZ5&prodType=Table.
---------------------------------------------------------------------------

    52. 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.\143\ The 
Commission's industry data indicate that there are currently 4,160 
active cable systems in the United States.\144\ Of this total, all but 
ten cable operators nationwide are small under the 400,000-subscriber 
size standard.\145\ In addition, under the Commission's rate regulation 
rules, a ``small system'' is a cable system serving 15,000 or fewer 
subscribers.\146\ Current Commission records show 4,160 cable systems 
nationwide.\147\ Thus, under this standard as well, we estimate that 
most cable systems are small entities.
---------------------------------------------------------------------------

    \143\ 47 CFR 76.901(e).
    \144\ As of July 5, 2018, there were 4,160 active cable systems 
in the Commission's Cable Operations and Licensing Systems (COALS) 
database.
    \145\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2017).
    \146\ 47 CFR 76.901(c)
    \147\ See footnote 2, supra.
---------------------------------------------------------------------------

    53. 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.'' \148\ There are approximately 53 million cable video 
subscribers in the United States today.\149\ 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.\150\ 
Based on available data, we find that all but nine incumbent cable 
operators are small entities under this size standard.\151\ 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.\152\ Although it seems certain 
that some of these cable system operators are affiliated with entities 
whose gross annual revenues

[[Page 47093]]

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

    \148\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \149\ See NCTA Industry Data, Cable's Customer Base, available 
at https://www.ncta.com/industry-data (last visited July 6, 2017).
    \150\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \151\ See https://www.snl.com/web/client?auth=inherit#industry/topCableMSOs (last visited July 18, 2018).
    \152\ 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).
---------------------------------------------------------------------------

    54. 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.\153\ The SBA determines that a wireline business is 
small if it has fewer than 1500 employees.\154\ 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.\155\ 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.
---------------------------------------------------------------------------

    \153\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \154\ NAICS code 517110; 13 CFR 121.201.
    \155\ https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=PEP_2017_PEPANNRES&src=pt.
---------------------------------------------------------------------------

    55. 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.\156\ 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.\157\ 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.\158\ Thus, most ``All Other 
Telecommunications'' firms potentially affected by the rules adopted 
can be considered small.
---------------------------------------------------------------------------

    \156\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
    \157\ 13 CFR 121.201; NAICS code 517919.
    \158\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    56. 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.\159\ 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.
---------------------------------------------------------------------------

    \159\ See 47 CFR 52.101(b)
---------------------------------------------------------------------------

    57. 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 
\160\ and Wireless Telecommunications Carriers (except satellite).\161\
---------------------------------------------------------------------------

    \160\ 13 CFR 121.201, NAICS code 517110
    \161\ 13 CFR 121.201, NAICS code 517210.
---------------------------------------------------------------------------

    58. 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.\162\ 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.\163\ 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.\164\ Based 
on that data, we conclude that most Carrier RespOrgs that operated with 
wireline-based technology are small.
---------------------------------------------------------------------------

    \162\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \163\ 13 CFR 120,201, NAICS code 517110.
    \164\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    59. 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.\165\ 
The appropriate size standard under SBA rules is that such a business 
is small if it has 1,500 or fewer employees.\166\ 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.\167\ 
Based on that data, we conclude that most Carrier RespOrgs that 
operated with wireless-based technology are small.
---------------------------------------------------------------------------

    \165\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \166\ 13 CFR 120.201, NAICS code 517120.
    \167\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    60. 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'' \168\ and ``Other Management Consulting 
Services.'' \169\
---------------------------------------------------------------------------

    \168\ 13 CFR 120.201, NAICS code 541890.
    \169\ 13 CFR 120.201, NAICS code 541618.

---------------------------------------------------------------------------

[[Page 47094]]

    61. 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.\170\ The SBA has established a size standard for this 
industry as annual receipts of $15 million dollars or less.\171\ 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.\172\ Based on that data we conclude that most 
Non-Carrier RespOrgs who provide TFN-related advertising services are 
small.
---------------------------------------------------------------------------

    \170\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \171\ 13 CFR 120.201, NAICS code 541890.
    \172\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    62. 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.\173\ The SBA has established a size standard 
for this industry of $15 million dollars or less.\174\ 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.\175\ Based on this data, we conclude that most non-
carrier RespOrgs who provide TFN-related management consulting services 
are small.\176\
---------------------------------------------------------------------------

    \173\ http://www.census.gov/cgi-bin/sssd/naics.naicsrch.
    \174\ 13 CFR 120.201, NAICS code 514618.
    \175\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
    \176\ 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.
---------------------------------------------------------------------------

    63. 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.\177\
---------------------------------------------------------------------------

    \177\ Email from Jennifer Blanchard, Somos, July 1, 2016.
---------------------------------------------------------------------------

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

    64. 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

    65. 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.\178\
---------------------------------------------------------------------------

    \178\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

    66. This Report and Order adopts the proposals in the Notice of 
Proposed Rulemaking to collect $322,035,000 in regulatory fees for FY 
2018, as detailed in the fee schedules in Table 4, including an 
increase in the DBS fee rate to 48 cents per subscriber so that the DBS 
fee would approach the cable television/IPTV fee, based on the Media 
Bureau FTEs devoted to issues that include DBS. The two DBS providers 
are not small entities. The regulatory fees adopted do not include any 
new fee categories, except for the addition of non-common carrier 
terrestrial international bearer circuits to the regulatory fee 
category of international bearer circuits, that previously did not pay 
regulatory fees. To the extent such providers are small entities, the 
rates for smaller numbers of circuits would be lower than the rates for 
larger quantity of circuits and, in addition, the de minimis of $1,000 
would likely exempt the smaller entities from paying annual regulatory 
fees.
    67. 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

    68. None.

IX. Ordering Clauses

    69. 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.
    70. It is further ordered that, pursuant to Division P--RAY BAUM's 
Act of 2018, Title I, 101-103, Consolidated Appropriations Act, 2018, 
Public Law Number 115-141, 132 Stat. 1084, (2018), the Order in Section 
V is hereby adopted.
    71. It is further ordered that the Report and Order in Section IV 
shall be effective upon publication in the Federal Register.
    72. It is further ordered that the Order in Section V shall be 
effective on October 1, 2018.
    73. 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 in this Report and Order, 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.

Federal Communications Commission.
Marlene Dortch,
Secretary.

Final Rules

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

[[Page 47095]]

PART 1--PRACTICE AND PROCEDURE

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


    Authority:  47 U.S.C. 151, 154(i), 155, 157, 160, 201, 225, 227, 
303, 309, 332, 1403, 1404, 1451, 1452, and 1455; Sec. 102(c), Div. 
P, Public Law 115-141, 132 Stat. 1084, unless otherwise noted.


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 &                25.00
     159).............................................
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 &                25.00
     159).............................................
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 &                25.00
     159).............................................
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 &                10.00
     159).............................................
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 &                40.00
     159).............................................
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 &                15.00
     159).............................................
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 &                10.00
     159).............................................
4. CMRS Cellular/Mobile Services (per unit) (FCC 159).           \2\ .20
5. CMRS Messaging Services (per unit) (FCC 159).......            \3\.08
6. Broadband Radio Service (formerly MMDS and MDS)....               600
7. Local Multipoint Distribution Service..............               600
------------------------------------------------------------------------
\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.

------------------------------------------------------------------------
                                                           Fee amount
------------------------------------------------------------------------
                   Radio [AM and FM] (47 CFR part 73)
------------------------------------------------------------------------
1. AM Class A:
    <=25,000 population...............................              $880
    25,001-75,000 population..........................             1,325
    75,001-150,000 population.........................             1,975
    150,001-500,000 population........................             2,975

[[Page 47096]]

 
    500,001-1,200,000 population......................             4,450
    1,200,001-3,000,000 population....................             6,700
    3,000,001-6,000,000 population....................            10,025
    >6,000,000 population.............................            15,050
2. AM Class B:
    <=25,000 population...............................               635
    25,001-75,000 population..........................               950
    75,001-150,000 population.........................             1,425
    150,001-500,000 population........................             2,150
    500,001-1,200,000 population......................             3,225
    1,200,001-3,000,000 population....................             4,825
    3,000,001-6,000,000 population....................             7,225
    >6,000,000 population.............................            10,850
3. AM Class C:
    <=25,000 population...............................               550
    25,001-75,000 population..........................               825
    75,001-150,000 population.........................             1,250
    150,001-500,000 population........................             1,850
    500,001-1,200,000 population......................             2,775
    1,200,001-3,000,000 population....................             4,175
    3,000,001-6,000,000 population....................             6,275
    >6,000,000 population.............................             9,400
4. AM Class D:
    <=25,000 population...............................               605
    25,001-75,000 population..........................               910
    75,001-150,000 population.........................             1,350
    150,001-500,000 population........................             2,050
    500,001-1,200,000 population......................             3,050
    1,200,001-3,000,000 population....................             4,600
    3,000,001-6,000,000 population....................             6,900
    >6,000,000 population.............................            10,325
5. AM Construction Permit.............................               550
6. FM Classes A, B1 and C3:
    <=25,000 population...............................               965
    25,001-75,000 population..........................             1,450
    75,001-150,000 population.........................             2,175
    150,001-500,000 population........................             3,250
    500,001-1,200,000 population......................             4,875
    1,200,001-3,000,000 population....................             7,325
    3,000,001-6,000,000 population....................            11,000
    >6,000,000 population.............................            16,500
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.........................             2,475
    150,001-500,000 population........................             3,725
    500,001-1,200,000 population......................             5,575
    1,200,001-3,000,000 population....................             8,350
    3,000,001-6,000,000 population....................            12,525
    >6,000,000 population.............................            18,800
8. FM Construction Permits............................               965
------------------------------------------------------------------------
                           TV (47 CFR part 73)
------------------------------------------------------------------------
Digital TV (UHF and VHF Commercial Stations):
    1. Markets 1 thru 10..............................            49,750
    2. Markets 11 thru 25.............................            37,450
    3. Markets 26 thru 50.............................            25,025
    4. Markets 51 thru 100............................            12,475
    5. Remaining Markets..............................             4,100
    6. Construction Permits...........................             4,100
Satellite UHF/VHF Commercial:
    1. All Markets....................................             1,500
    Low Power TV, Class A TV, TV/FMTranslator, & TV/FM               380
     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) (Electronic Filing)     $25.00.
 (FCC Form 601 & 159).

[[Page 47097]]

 
Carriers:                                                    ...................................................
    1. Interstate Telephone Service Providers (per           $.00291.
     interstate and international end-user revenues (see
     FCC Form 499-A).
    2. Toll Free Number Fee................................  $.10 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.

----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
1. Cable Television Relay Service..........................  $1,075.
2. Cable TV System, Including IPTV (per subscriber)........  $.77.
3. Direct Broadcast Satellite (DBS)........................  $.48 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. The following schedule applies for the listed services:

------------------------------------------------------------------------
                     Fee category                          Fee amount
------------------------------------------------------------------------
Space Stations (Geostationary Orbit)..................          $127,850
Space Stations (Non-Geostationary Orbit)..............           122,775
Earth Stations: Transmit/Receive & Transmit only (per                325
 authorization or registration).......................
------------------------------------------------------------------------

    (b) International Terrestrial and Satellite. (1) Regulatory fees 
for International Bearer Circuits are to be paid by facilities-based 
common carriers and non-common carrier basis 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. ``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 on a per active Gbps basis will be determined 
for each fiscal year.

----------------------------------------------------------------------------------------------------------------
  International terrestrial and satellite (capacity as of
                     December 31, 2017)                                           Fee amount
----------------------------------------------------------------------------------------------------------------
Terrestrial Common Carrier.................................  $176 per Gbps Circuit.
Terrestrial Non-Common Carrier.                              ...................................................
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, 2017)     Fee amount
------------------------------------------------------------------------
<50 Gbps..............................................            $9,850
50 Gbps or greater, but less than 250 Gbps............            19,725
250 Gbps or greater, but less than 1,000 Gbps.........            39,425
1,0000 Gbps or greater, but less than 4,000 Gbps......            78,875
4,000 Gbps or greater.................................           157,750
------------------------------------------------------------------------



0
7. Section 1.1940(c) is revised to read as follows:

Sec.  1.1940   Assessment.

* * * * *
    (c) The Commission shall assess administrative costs incurred for 
processing and handling delinquent debts, unless otherwise prohibited 
by statute. The calculation of administrative costs may be based on 
actual costs incurred or upon estimated costs as determined by the 
Commission. Commission administrative costs include the personnel and 
service costs (e.g., telephone, copier, and overhead) to notify and 
collect the debt, without regard to the success of such efforts by the 
Commission.
* * * * *

[FR Doc. 2018-19548 Filed 9-17-18; 8:45 am]
 BILLING CODE 6712-01-P