[Federal Register Volume 84, Number 205 (Wednesday, October 23, 2019)]
[Proposed Rules]
[Pages 56734-56743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22914]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 19-105; FCC 19-83]


Assessment and Collection of Regulatory Fees for Fiscal Year 2019

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) adopted a notice of proposed rulemaking that seeks comment 
on several proposals that will impact FY 2020 regulatory fees.

DATES: Submit comments on or before November 22, 2019; and reply 
comments on or before December 23, 2019.

ADDRESSES: You may submit comments, identified by MD Docket No. 19-105, 
by any of the following methods:
     Federal Communications Commission's Website: http://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

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

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SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Further Notice of Proposed Rulemaking (FNPRM), FCC 19-83; MD Docket No. 
19-105, adopted on August 15, 2019 and released on August 27, 2019. The 
full text of this document is available for inspection and copying 
during normal business hours in the FCC Reference Center, 445 12th 
Street SW, Room CY-A257, Portals II, Washington, DC 20554. This 
document is available in alternative formats (computer diskette, large 
print, audio record, and braille). Persons with disabilities who need 
documents in these formats may contact the FCC by email: [email protected] 
or phone: 202-418-0530 or TTY: 202-418-0432.

I. Introduction

    1. In this FNPRM, we seek additional comment on several issues to 
continue reforming our assessment of regulatory fees.

II. Further Notice of Proposed Rulemaking

A. Assessing International Bureau Regulatees

    2. The Commission's goal in assessing International Bureau 
regulatory fees is to recover all of the costs associated with 
International Bureau regulatory activities and to distribute these 
costs fairly among fee payers. But not all beneficiaries of the 
International Bureau's regulatory activities currently pay regulatory 
fees, and some commenters argue that we should reexamine the 
allocations of FTEs within the bureau. We take this opportunity to seek 
comment on reforming our assessment of regulatory fees for 
International Bureau regulatees.
    3. First, we seek comment on whether we should assess regulatory 
fees on all space stations granted approval by the Commission to 
communicate with earth stations in the United States. In the past, the 
Commission has assessed regulatory fees on space stations (both 
geostationary and non-geostationary orbit) licensed by the Commission, 
but not on foreign-licensed space stations that have been granted 
market access by the Commission.\1\ The Commission's policy, 
regulatory, international, user information, and enforcement activities 
all benefit non-U.S. licensed space stations that access the U.S. 
market. Rulemaking proceedings establishing processing procedures or 
service rules for satellite services apply both to U.S. licensed space 
stations and non-U.S. licensed space stations providing service in the 
United States,\2\ and operators of non-U.S. licensed space stations 
actively participate in FCC regulatory proceedings.\3\ Non-U.S. 
licensed space stations are also monitored to ensure that their 
operators satisfy all conditions placed on their grant of U.S. market 
access, including space station implementation milestones and 
operational requirements, and are subject to enforcement action if the 
conditions are not met. Despite the regulatory benefits provided by the 
Commission to non-U.S. licensed space stations serving the United 
States they do not incur the regulatory fees paid by operators of U.S.-
licensed space stations.
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    \1\ 47 CFR 1.1156.
    \2\ See, e.g., Mitigation of Orbital Debris in the New Space 
Age, IB Docket No. 18-313, Notice of Proposed Rulemaking and Order 
on Reconsideration, 84 FR 4742 (Feb. 19, 2019), 33 FCC Rcd 11352 
(2018); Amendment of Parts 2 and 25 of the Commission's Rules to 
Facilitate the Use of Earth Stations in Motion Communicating with 
Non-Geostationary Orbit Space Stations in Frequency Bands Allocated 
to the Fixed-Satellite Service, IB Docket No. 18-315, Notice of 
Proposed Rulemaking, 83 FR 67180 (Dec. 28, 2018), 33 FCC Rcd 11416 
(2018); Amendment of the Commission's Policies and Rules for 
Processing Applications in the Direct Broadcast Satellite Service, 
IB Docket No. 06-160, Second Notice of Proposed Rulemaking, 84 FR 
2126 (Feb. 6, 2019), 33 FCC Rcd 11303 (2018); Amendment of Parts 2 
and 25 of the Commission's Rules to Facilitate the Use of Earth 
Stations in Motion Communicating with Geostationary Orbit Space 
Stations in Frequency Bands Allocated to the Fixed Satellite 
Service, IB Docket No 17-95, Report and Order and Further Notice of 
Proposed Rulemaking, 84 FR 53630 (Oct. 8, 2019) and 84 FR 5654 (Feb. 
22, 2019), 32 FCC Rcd 9327 (2018); Further Streamlining Part 25 
Rules Governing Satellite Services, IB Docket No. 18-314, Notice of 
Proposed Rulemaking, 84 FR 638 (Jan. 31, 2019), 33 FCC Rcd 11502 
(2018); Streamlining Licensing Procedures for Small Satellites, IB 
Docket No. 18-86, Notice of Proposed Rulemaking, 83 FR 24064 (May 
24, 2018), 33 FCC Rcd 4152 (2018); Update to Parts 2 and 25 
Concerning Non-Geostationary, Fixed-Satellite Service Systems and 
Related Matters, IB Docket No. 16-408, Report and Order and Further 
Notice of Proposed Rulemaking, 82 FR 59972 (Dec. 18, 2017) and 82 FR 
52869 (Nov. 15, 2017), 32 FCC Rcd 7809 (2017); Amendment of Parts 2 
and 25 of the Commission's Rules to Facilitate the Use of Earth 
Stations in Motion Communicating with Geostationary Orbit Space 
Stations in Frequency Bands Allocated to the Fixed-Satellite 
Service, IB Docket No. 17-95, Notice of Proposed Rulemaking, 82 FR 
27652 (June 16, 2017), 32 FCC Rcd 4239 (2017).
    \3\ Operators of non-U.S. licensed space stations have actively 
participated in nearly all of the satellite rulemaking proceedings 
over the course of the last several years. In addition, operators of 
non-U.S. space stations participate in FCC proceedings through their 
membership in the Satellite Industry Association, including roles as 
executive members. See https://www.sia.org/join-sia/.
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    4. We seek comment on whether we should or must assess regulatory 
fees on non-U.S. licensed space stations serving the United States 
under section 9, given that non-U.S. licensed space stations appear to 
benefit from the Commission's regulatory activities in much the same 
manner as U.S. licensed space stations.\4\ The Commission has 
previously declined to assess regulatory fees on non-U.S. licensed 
space stations. In 1999, the Commission observed that the Act at the 
time only authorized the Commission to assess space stations 
``licensees,'' i.e., those licensed under Title III--which does not 
include non-U.S.-licensed space stations.\5\ And the Commission sought 
comment on assessing such fees in 2013 and 2014 but ultimately, did not 
do so.\6\ We observe that the change made to section 9 by the RAY 
BAUM'S Act requires the Commission to consider increases and decreases 
in the ``number of units'' subject to payment of regulatory fees, but 
does not state ``licensees.'' \7\ In this respect, the ``unit'' used 
for assessing satellite space station regulatory fees is ``per 
operational station in geostationary orbit'' or ``per operational 
system in non-geostationary orbit.'' \8\ This broader language appears 
equally applicable to U.S. licensed and non-U.S. licensed space 
stations. We seek comment on whether we may or must assess such fees.
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    \4\ See EchoStar August 8 Ex Parte Letter, Attachment, at 1.
    \5\ Assessment and Collection of Regulatory Fees for Fiscal Year 
1999, Report and Order, 74 FR 400089 (Aug. 11, 2009), 14 FCC Rcd 
9896, 9882, para. 39 (1999) (FY 1999 Report and Order).
    \6\ Assessment and Collection of Regulatory Fees for Fiscal Year 
2014, Notice of Proposed Rulemaking, Second Further Notice of 
Proposed Rulemaking, and Order, 79 FR 37982 (July 3, 2014), 29 FCC 
Rcd 6417, 6433-34, paras. 47-50 (2014) (FY 2014 NPRM); Assessment 
and Collection of Regulatory Fees for Fiscal Year 2013, Notice of 
Proposed Rulemaking and Further Notice of Proposed Rulemaking, 78 FR 
34612 (June 10, 2013) and 79 FR 63883 (Oct. 27, 2014), 28 FCC Rcd 
7790, 7809-810, paras. 47-49 (2013) (FY 2013 NPRM).
    \7\ 47 U.S.C. 159(c)(1)(A).
    \8\ See Appendix D: Assessment and Collection of Regulatory Fees 
for Fiscal Year 2019, Notice of Proposed Rulemaking, 84 FR 26234 
(June 5, 2019).
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    5. We seek comment on whether assessing non-U.S. licensed space 
stations would promote regulatory parity among space station operators. 
Do any space station operators choose to seek licensing elsewhere as a 
means of arbitraging our current regulatory fee assessments? Is it fair 
or equitable to grant one class of space station operators a non-
statutory exemption from fees that another class of similarly situated 
operators must pay? Commenters that advocate assessing regulatory fees 
on non-U.S. licensed space stations providing service in the United 
States should propose how the fees should be calculated and applied. 
Are there any corner cases, such as where the non-U.S. licensed space 
station operator accesses the U.S. market solely through one or more 
U.S.-

[[Page 56736]]

licensed earth stations that identify a non-U.S. licensed space station 
as a point of communication? If the regulatory fee per earth station 
license is significantly less than the regulatory fee assessed per 
space station, would such a discrepancy provide an incentive for space 
station operators to see U.S. market access solely through earth 
station licenses as a method of regulatory fee arbitrage? How should we 
assess regulatory fees to avoid such arbitrage? Commenters should also 
discuss any other policy implications that may arise from taking such 
action, such as the likelihood that other countries will choose to 
assess fees on U.S.-licensed space stations, and whether this policy 
implication is still relevant in light of the number of U.S.-licensed 
versus non-U.S. licensed space stations.\9\
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    \9\ In 2014, the Commission observed that the majority of the 
space station applications and notifications during the preceding 
three-year period pertained to non-U.S.-licensed space stations. FY 
2014 NPRM, 29 FCC Rcd at 6434, para. 50. In the period of 2014 
through 2018, 48 approvals were given for geostationary space 
stations and 14 were given for non-geostationary systems, according 
to the International Bureau's electronic filing system, IBFS. Of 
these, 23 of the 48 approvals were for non-U.S. licensed 
geostationary space stations, and 7 of the 14 were for non-U.S. 
licensed non-geostationary space station systems.
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    6. We note that the Commission previously reallocated four 
International Bureau FTEs as indirect for regulatory fee purposes to 
address the work that International Bureau FTEs conduct on market 
access requests by non-U.S. licensed space stations.\10\ The effect of 
that decision was to require domestic broadcasters, wireless providers, 
ITSPs, and others to pay for the regulatory work done on behalf of 
foreign-licensed satellite operators. We seek comment on whether any 
changes to our direct International Bureau FTE allocations would be 
necessary if regulatory fees are adopted for non-U.S. licensed space 
stations.
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    \10\ FY 2015 Report and Order, 80 FR 55775 (Sept. 17, 2015), 30 
FCC Rcd at 10278, para. 24.
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    7. Second, several commenters have argued that we should adjust the 
apportionment among fee categories within the International Bureau. For 
example, NASCA claims that the Commission has continued to over-recover 
regulatory fees from submarine cable operators because the combined 
submarine cable and IBC revenue requirement is relatively high compared 
to the satellite and earth station categories.\11\ NASCA argues that 
the other fee categories account for a much higher proportion of the 
FTEs' activities in the International Bureau.\12\ And EchoStar asserts 
that the Commission should examine the allocation of FTEs among 
geostationary orbit (GSO) and non-geostationary orbit (NGSO) space and 
earth station operators.\13\ We seek comment on whether the Commission 
should reallocate FTEs within the International Bureau. If so, should 
the Commission reassess the number of FTEs working on the issues of 
various regulatees or reallocate fees based on relative capacity of 
various services? Or should the Commission use some other metric to 
engage in the reallocation? We also seek comment on whether the 
Commission should change its current allocation of regulatory fees 
between submarine cable and satellite and terrestrial IBCs based on a 
plan developed by the IBC industry, with 87.6% of IBC fees paid by 
submarine cable and 12.4% by satellite/terrestrial facilities. 
Commenters should discuss whether certain apportionments within the 
International Bureau could be more appropriately adjusted to better 
reflect the amount of oversight and regulation for these industries.
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    \11\ NASCA Comments at 12; see also SEA-US May 1 Ex Parte Letter 
at 2 (contending that the submarine cable operators pay a 
disproportionate share of the regulatory fees allocated to 
International Bureau regulatees compared to terrestrial and 
satellite IBCs).
    \12\ NASCA Reply Comments at 4.
    \13\ EchoStar August 8 Ex Parte Letter, Attachment, at 1.
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B. Adjusting TV and Radio Broadcaster Regulatory Fees

    8. We seek comment on two suggestions by commenters to further 
adjust our assessment of broadcaster regulatory fees. First, we seek 
comment on adjusting the regulatory fees paid by VHF broadcasters. The 
VHF television band occupies frequencies between 54 and 216 MHz and in 
general, VHF channels are numbered 2 to 13. Commenters on the FY 2019 
NPRM argue that the predicted contour distance does not adequately 
account for all of the possible effects on the VHF station signal, such 
as terrain blockage, which may limit the signal, thereby reducing the 
population number that is actually reached.\14\ Commenters contend that 
the population count is therefore overstated for VHF stations and 
should be adjusted downward accordingly.\15\ Should we adjust 
population counts in our contour modeling to address such concerns, and 
if so, how?
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    \14\ TZS Comments at 2; NAB Reply Comments at 8-9.
    \15\ TZS Comments at 2; PMCM Comments at 2-3.
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    9. Second, we seek comment on whether we should adopt a lower 
regulatory fee for full-service AM and FM broadcast radio station 
incubator licensees. The Commission's broadcast incubator program is 
intended to create ownership opportunities for new entrants that are 
small businesses and promote competition and diversity in the radio 
broadcast industry.\16\ MMTC asserts that regulatory fees may make it 
more difficult for the incubator stations to thrive, and the Commission 
should exempt them from regulatory fees for the term of the 
license.\17\ Commenters should discuss an appropriate reduction from 
the regulatory fee for broadcasters, such as 50%.
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    \16\ MMTC Comments at 1.
    \17\ MMTC Comments at 2.
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III. Procedural Matters

A. Ex Parte Information

    10. This proceeding shall be treated as a ``permit-but-disclose'' 
proceeding in accordance with the Commission's ex parte rules.\18\ 
Persons making ex parte presentations must file a copy of any written 
presentation or a memorandum summarizing any oral presentation within 
two business days after the presentation (unless a different deadline 
applicable to the Sunshine period applies). Persons making oral ex 
parte presentations are reminded that memoranda summarizing the 
presentation must (1) list all persons attending or otherwise 
participating in the meeting at which the ex parte presentation was 
made, and (2) summarize all data presented and arguments made during 
the presentation. If the presentation consisted in whole or in part of 
the presentation of data or arguments already reflected in the 
presenter's written comments, memoranda, or other filings in the 
proceeding, the presenter may provide citations to such data or 
arguments in his or her prior comments, memoranda, or other filings 
(specifying the relevant page and/or paragraph numbers where such data 
or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with Sec.  1.1206(b) of the Commission's rules. In 
proceedings governed by Sec.  1.49(f) of the Commission's rules or for 
which the Commission has made available a method of electronic filing, 
written ex parte presentations and memoranda summarizing oral ex parte 
presentations, and all attachments thereto, must be filed through the 
electronic comment filing system available for that proceeding, and 
must be filed in their native format (e.g., .doc,

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.xml, .ppt, searchable .pdf). Participants in this proceeding should 
familiarize themselves with the Commission's ex parte rules.
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    \18\ 47 CFR 1.1200 through 1.1216.
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B. Filing Instructions

    11. Pursuant to Sec. Sec.  1.415 and 1.419 of the Commission's 
rules, 47 CFR 1.415, 1.419, interested parties may file comments and 
reply comments on or before the dates indicated on the first page of 
this document. Comments may be filed using the Commission's Electronic 
Comment Filing System (ECFS). See Electronic Filing of Documents in 
Rulemaking Proceedings, 63 FR 24121 (1998).
     Electronic Filers: Comments may be filed electronically 
using the internet by accessing the ECFS: http://apps.fcc.gov/ecfs/.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing. If more than one docket 
or rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number.
    Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail. All filings must be addressed to the Commission's Secretary, 
Office of the Secretary, Federal Communications Commission.
     All hand-delivered or messenger-delivered paper filings 
for the Commission's Secretary must be delivered to FCC Headquarters at 
445 12th St. SW, Room TW-A325, Washington, DC 20554. The filing hours 
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together 
with rubber bands or fasteners. Any envelopes and boxes must be 
disposed of before entering the building.
     Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to FCC, 9050 Junction 
Drive, Annapolis Junction, MD 20701.
     U.S. Postal Service first-class, Express, and Priority 
mail must be addressed to 445 12th Street SW, Washington, DC 20554.
    12. People with Disabilities: To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).

C. Initial Regulatory Flexibility Analysis

    13. An initial regulatory flexibility analysis (IRFA) is contained 
in this summary. Comments to the IRFA must be identified as responses 
to the IRFA and filed by the deadlines for comments on the Notice of 
Proposed Rulemaking (84 FR 26234 (June 5, 2019)). The Commission will 
send a copy of the Notice of Proposed Rulemaking, including the IRFA, 
to the Chief Counsel for Advocacy of the Small Business Administration.

D. Initial Paperwork Reduction Act of 1995 Analysis

    14. 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).

IV. Initial Regulatory Flexibility Analysis

    15. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\19\ the Commission prepared this Initial Regulatory 
Flexibility Analysis (IRFA) of the possible significant economic impact 
on small entities by the policies and rules proposed in the FNPRM. 
Written comments are requested on this IRFA. Comments must be 
identified as responses to the IRFA and must be filed by the deadline 
for comments on this Further Notice. The Commission will send a copy of 
the FNPRM, including the IRFA, to the Chief Counsel for Advocacy of the 
Small Business Administration (SBA).\20\ In addition, the FNPRM and 
IRFA (or summaries thereof) will be published in the Federal 
Register.\21\
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    \19\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
    \20\ 5 U.S.C. 603(a).
    \21\ Id.
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A. Need for, and Objectives of, the Further Notice

    16. The FNPRM seeks comment on (i) adding a new fee category for 
non-U.S. licensed satellite operators who have been granted access to 
the U.S. market; (ii) adjusting the apportionment among fee categories 
within the International Bureau; (iii) adjusting TV broadcaster 
regulatory fees for VHF licenses; and (iv) adopting a lower regulatory 
fee for broadcast incubator licensees. These issues may be further 
addressed in the annual regulatory fee Notice of Proposed Rulemaking 
for next year. The Commission is required by Congress to adopt 
regulatory fees each year ``to recover the costs of carrying out the 
activities described in section 6(a) only to the extent, and in the 
total amounts, provided for in Appropriation Acts.'' \22\
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    \22\ 47 U.S.C. 159(a).
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B. Legal Basis

    17. This action, including publication of proposed rules, is 
authorized under sections (4)(i) and (j), 9, 9A, and 303(r) of the 
Communications Act of 1934, as amended.\23\
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    \23\ 47 U.S.C. 154(i) and (j), 159, 159A, and 303(r).
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C. Description and Estimate of the Number of Small Entities to Which 
the Rules Will Apply

    18. 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.\24\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \25\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\26\ 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.\27\
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    \24\ 5 U.S.C. 603(b)(3).
    \25\ 5 U.S.C. 601(6).
    \26\ 5 U.S.C. 601(3) (adopting 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.''
    \27\ 15 U.S.C. 632.
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    19. Small Entities. Our actions, over time, may affect small 
entities that are not easily categorized at present. We therefore 
describe here, at the outset, three comprehensive small entity size 
standards that could be directly affected by the proposals under 
consideration.\28\ As of 2009, small businesses represented 99.9 
percent of the 27.5 million businesses in the United States, according 
to the SBA.\29\ In addition, a ``small organization is generally any 
not-for-profit enterprise which is independently owned and operated and

[[Page 56738]]

not dominant in its field.\30\ In addition, the term ``small 
governmental jurisdiction'' is defined generally as ``governments of 
cities, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' \31\ U.S. 
Census Bureau data for 2011 indicate that there were 90,056 local 
governmental jurisdictions in the United States.\32\ We estimate that, 
of this total, as many as 89,327 entities may qualify as ``small 
governmental jurisdictions.'' \33\ Thus, we estimate that most local 
government jurisdictions are small.
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    \28\ See 5 U.S.C. 601(3)-(6).
    \29\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
    \30\ 5 U.S.C. 601(4).
    \31\ 5 U.S.C. 601(5).
    \32\ See SBA, Office of Advocacy, ``Frequently Asked 
Questions,'' available at https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf.
    \33\ The 2011 U.S. Census Data for small governmental 
organizations are not presented based on the size of the population 
in each organization. As stated above, there were 90,056 local 
governmental organizations in 2011. As a basis for estimating how 
many of these 90,056 local governmental organizations were small, we 
note that there were a total of 729 cities and towns (incorporated 
places and civil divisions) with populations over 50,000. See http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table. If we 
subtract the 729 cities and towns that exceed the 50,000 population 
threshold, we conclude that approximately 789,237 are small.
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    20. Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as ``establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired communications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services, wired (cable and IPTV) 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.'' \34\ 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.\35\ 
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.\36\ Thus, under this size standard, the majority of firms in 
this industry can be considered small.
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    \34\ See http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \35\ See 13 CFR 120.201, NAICS code 517110.
    \36\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5 &prodType= table .
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    21. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to local exchange services. The closest applicable NAICS 
code category is for Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer 
employees.\37\ According to census data from 2012, there were 3,117 
establishments that operated that year. Of this total, 3,083 operated 
with fewer than 1,000 employees.\38\ The Commission estimates that most 
providers of local exchange service are small entities that may be 
affected by the rules proposed in the Further Notice.
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    \37\ 13 CFR 121.201, NAICS code 517110.
    \38\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5 &prodType= table.
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    22. 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. Under that size standard, such a 
business is small if it has 1,500 or fewer employees.\39\ According to 
census data from 2012, 3,117 firms operated in that year. Of this 
total, 3,083 operated with fewer than 1,000 employees.\40\ According to 
Commission data, 1,307 carriers reported that they were incumbent local 
exchange service providers.\41\ Of this total of 1,307 incumbent local 
exchange service providers, an estimated 1,006 operated with 1,500 or 
fewer employees.\42\ Consequently, the Commission estimates that most 
providers of incumbent local exchange service are small businesses that 
may be affected by the rules proposed in this Further Notice.
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    \39\ 13 CFR 121.201, NAICS code 517110.
    \40\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5 &prodType= table.
    \41\ See Trends in Telephone Service, Federal Communications 
Commission, Wireline Competition Bureau, Industry Analysis and 
Technology Division at Table 5.3 (Sept. 2010) (Trends in Telephone 
Service).
    \42\ See id.
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    23. 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. Under that size standard, such a business 
is small if it has 1,500 or fewer employees.\43\ 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.\44\ Based on 
this data, the Commission concludes that the majority of Competitive 
LECs, CAPs, Shared-Tenant Service Providers, and Other Local Service 
Providers are small entities. According to the Commission data, 1,442 
carriers reported that they were engaged in the provision of either 
competitive local exchange services or competitive access provider 
services.\45\ Of these 1,442 carriers, an estimated 1,256 have 1,500 or 
fewer employees. 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.\46\ Also, 72 carriers have reported that they are 
Other Local Service Providers.\47\ Of this total, 70 have 1,500 or 
fewer employees.\48\ Consequently, the Commission estimates that most 
providers of competitive local exchange service, competitive access 
providers, Shared-Tenant Service Providers, and Other Local Service 
Providers are small entities that may be affected by rules proposed in 
this Further Notice.
---------------------------------------------------------------------------

    \43\ 13 CFR 121.201, NAICS code 517110.
    \44\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \45\ See Trends in Telephone Service, at Table 5.3.
    \46\ Id.
    \47\ Id.
    \48\ Id.
---------------------------------------------------------------------------

    24. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a definition for Interexchange Carriers. The closest 
NAICS code category is Wired Telecommunications Carriers as defined in 
paragraph 6 of this IRFA. The applicable size standard under SBA rules 
is that such a business is small if it has 1,500 or fewer 
employees.\49\ 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.\50\ According to Commission data, 359 companies 
reported that their primary

[[Page 56739]]

telecommunications service activity was the provision of interexchange 
services.\51\ Of this total, an estimated 317 have 1,500 or fewer 
employees. Consequently, the Commission estimates that the majority of 
interexchange service providers are small entities that may be affected 
by rules proposed in this Further Notice.
---------------------------------------------------------------------------

    \49\ 13 CFR 121.201, NAICS code 517110.
    \50\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \51\ See Trends in Telephone Service, at Table 5.3.
---------------------------------------------------------------------------

    25. Prepaid Calling Card Providers. Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
prepaid calling card providers. The appropriate NAICS code category for 
prepaid calling card providers is Telecommunications Resellers. This 
industry comprises establishments engaged in purchasing access and 
network capacity from owners and operators of telecommunications 
networks and reselling wired and wireless telecommunications services 
(except satellite) to businesses and households. Establishments in this 
industry resell telecommunications; they do not operate transmission 
facilities and infrastructure. Mobile virtual networks operators 
(MVNOs) are included in this industry.\52\ Under the applicable SBA 
size standard, such a business is small if it has 1,500 or fewer 
employees.\53\ U.S. Census data for 2012 show that 1,341 firms provided 
resale services during that year. Of that number, 1,341 operated with 
fewer than 1,000 employees.\54\ 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.\55\ All 193 carriers have 1,500 
or fewer employees.\56\ Consequently, the Commission estimates that the 
majority of prepaid calling card providers are small entities that may 
be affected by rules proposed in this Further Notice.
---------------------------------------------------------------------------

    \52\ http://www.census.gov/cgi-bin/ssd/naics/naicsrch.
    \53\ 13 CFR 121.201, NAICS code 517911.
    \54\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \55\ See Trends in Telephone Service, at Table 5.3.
    \56\ Id.
---------------------------------------------------------------------------

    26. 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.\57\ Census 
data for 2012 show that 1,341 firms provided resale services during 
that year.\58\ Of that number, 1,341 operated with fewer than 1,000 
employees.\59\ 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.\60\ Of this total, an estimated 211 have 1,500 or fewer 
employees.\61\ Consequently, the Commission estimates that the majority 
of local resellers are small entities that may be affected by rules 
proposed in this Further Notice.
---------------------------------------------------------------------------

    \57\ 13 CFR 121.201, NAICS code 517911.
    \58\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \59\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \60\ See Trends in Telephone Service, at Table 5.3.
    \61\ Id.
---------------------------------------------------------------------------

    27. 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.\62\ Under that size standard, such a business is small if it 
has 1,500 or fewer employees.\63\ Census data for 2012 show that 1,341 
firms provided resale services during that year.\64\ Of that number, 
1,341 operated with fewer than 1,000 employees.\65\ 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.\66\ Of this total, an estimated 
857 have 1,500 or fewer employees.\67\ Consequently, the Commission 
estimates that the majority of toll resellers are small entities that 
may be affected by the rules proposed in the Further Notice.
---------------------------------------------------------------------------

    \62\ 13 CFR 121.201, NAICS code 517911.
    \63\ Id.
    \64\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \65\ Id.
    \66\ Trends in Telephone Service, at Table. 5.3.
    \67\ Id.
---------------------------------------------------------------------------

    28. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a size standard for small businesses specifically applicable 
to Other Toll Carriers. This category includes toll carriers that do 
not fall within the categories of interexchange carriers, operator 
service providers, prepaid calling card providers, satellite service 
carriers, or toll resellers. The closest applicable NAICS code category 
is for Wired Telecommunications Carriers, as defined in paragraph 6 of 
this IRFA. Under that size standard, such a business is small if it has 
1,500 or fewer employees.\68\ Census data for 2012 shows that there 
were 3,117 firms that operated that year.\69\ Of this total, 3,083 
operated with fewer than 1,000 employees.\70\ Thus, under this category 
and the associated small business size standard, the majority of Other 
Toll Carriers can be considered small. According to Commission data, 
284 companies reported that their primary telecommunications service 
activity was the provision of other toll carriage.\71\ Of these, an 
estimated 279 have 1,500 or fewer employees.\72\ Consequently, the 
Commission estimates that most Other Toll Carriers are small entities 
that may be affected by the rules proposed in the Further Notice.
---------------------------------------------------------------------------

    \68\ 13 CFR 121.201, NAICS code 517110.
    \69\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \70\ Id.
    \71\ Trends in Telephone Service, at Table 5.3.
    \72\ Id.
---------------------------------------------------------------------------

    29. 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.\73\ 
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.\74\ Of this total, 955 firms had fewer than 1,000 
employees.\75\ 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 Commission data, 413

[[Page 56740]]

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.\76\ Of this total, 
an estimated 261 have 1,500 or fewer employees.\77\ Thus, using 
available data, we estimate that the majority of wireless firms can be 
considered small and may be affected by rules proposed in this Further 
Notice.
---------------------------------------------------------------------------

    \73\ NAICS code 517210. See http://www.census.gov/cgi-bin/ssd/
naics/naiscsrch.
    \74\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \75\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \76\ Trends in Telephone Service, at Table 5.3.
    \77\ Id.
---------------------------------------------------------------------------

    30. 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.'' \78\ 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.\79\ The 2012 Economic 
Census reports that 751 television broadcasting firms operated during 
that year. Of that number, 656 had annual receipts of less than $25 
million per year. Based on that Census data we conclude that a majority 
of firms that operate television stations are small. The Commission has 
estimated the number of licensed commercial television stations to be 
1,387.\80\ 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.\81\ We therefore estimate that the majority of commercial 
television broadcasters are small entities.
---------------------------------------------------------------------------

    \78\ U.S. Census Bureau, 2012 NAICS code Economic Definitions, 
http://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \79\ 13 CFR 121.201, NAICS code 515120.
    \80\ See FCC News Release, ``Broadcast Station Totals as of 
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
    \81\ We recognize that BIA's estimate differs slightly from the 
FCC total given supra.
---------------------------------------------------------------------------

    31. In assessing whether a business concern qualifies as small 
under the above definition, business (control) affiliations \82\ 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.
---------------------------------------------------------------------------

    \82\ ``[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).
---------------------------------------------------------------------------

    32. In addition, the Commission has estimated the number of 
licensed noncommercial educational (NCE) television stations to be 
396.\83\ These stations are non-profit, and therefore considered to be 
small entities.\84\ There are also 2,528 low power television stations, 
including Class A stations (LPTV).\85\ 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.
---------------------------------------------------------------------------

    \83\ See FCC News Release, ``Broadcast Station Totals as of 
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
    \84\ See generally 5 U.S.C. 601(4), (6). Noncommercial 
television stations are not required to pay regulatory fees. 47 
U.S.C. 159(e)(1)(C).
    \85\ See FCC News Release, ``Broadcast Station Totals as of 
December 31, 2011,'' dated January 6, 2012; http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf.
---------------------------------------------------------------------------

    33. Radio Broadcasting. This Economic Census category ``comprises 
establishments primarily engaged in broadcasting programs by radio to 
the public. Programming may originate in their own studio, from an 
affiliated network, or from external sources.'' \86\ 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.\87\ U.S. 
Census data for 2012 show that 2,849 radio station firms operated 
during that year.\88\ Of that number, 2,806 operated with annual 
receipts of less than $25 million per year.\89\ According to Commission 
staff review of BIA Advisory Services, LLC's Media Access Pro Radio 
Database on March 28, 2012, about 10,759 (97 percent) of 11,102 
commercial radio stations had revenues of $38.5 million or less. 
Therefore, the majority of such entities are small entities.
---------------------------------------------------------------------------

    \86\ http://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \87\ 13 CFR 121.201, NAICS code 515112.
    \88\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \89\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
---------------------------------------------------------------------------

    34. In assessing whether a business concern qualifies as small 
under the above size standard, business affiliations must be 
included.\90\ In addition, to be determined to be a ``small business,'' 
the entity may not be dominant in its field of operation.\91\ 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.
---------------------------------------------------------------------------

    \90\ ``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).
    \91\ 13 CFR 121.102(b) (an SBA regulation).
---------------------------------------------------------------------------

    35. 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.\92\ 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.\93\ Of this total, 319 operated with 
annual receipts of less than $25 million.\94\ Thus under this size 
standard, the majority of firms offering cable and other program 
distribution services can be considered small and may be affected by 
rules proposed in this Further Notice.
---------------------------------------------------------------------------

    \92\ https://www.census.gov.cgi-bin/sssd/naics/naicsrch.
    \93\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
    \94\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=Table">http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=Table.
---------------------------------------------------------------------------

    36. 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.\95\

[[Page 56741]]

Industry data indicate that there are currently 4,600 active cable 
systems in the United States.\96\ Of this total, all but ten cable 
operators nationwide are small under the 400,000-subscriber size 
standard.\97\ In addition, under the Commission's rate regulation 
rules, a ``small system'' is a cable system serving 15,000 or fewer 
subscribers.\98\ Current Commission records show 4,600 cable systems 
nationwide.\99\ Of this total, 3,900 cable systems have less than 
15,000 subscribers, and 700 systems have 15,000 or more subscribers, 
based on the same records.\100\ Thus, under this standard as well, the 
Commission estimates that most cable systems are small entities.
---------------------------------------------------------------------------

    \95\ 47 CFR 76.901(e).
    \96\ August 15, 2015 Report from the Media Bureau based on data 
contained in the Commission's Cable Operations and Licensing System 
(COALS). See www/fcc.gov/coals.
    \97\ See SNL KAGAN at www.snl.com/interactiveX/topcableMSOs 
aspx?period2015Q1&sortcol=subscribersbasic&sortorder=desc.
    \98\ 47 CFR 76.901(c).
    \99\ See footnote 2, supra.
    \100\ August 5, 2015 report from the Media Bureau based on its 
research in COALS. See www.fcc.gov/coals.
---------------------------------------------------------------------------

    37. 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.'' \101\ There are approximately 52,403,705 cable video 
subscribers in the United States today.\102\ 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.\103\ 
Based on available data, we find that all but nine incumbent cable 
operators are small entities under this size standard.\104\ The 
Commission neither requests nor collects information on whether cable 
system operators are affiliated with entities whose gross annual 
revenues exceed $250 million.\105\ Although it seems certain that some 
of these cable system operators are affiliated with entities whose 
gross annual revenues exceed $250,000,000, we are unable at this time 
to estimate with greater precision the number of cable system operators 
that would qualify as small cable operators under the definition in the 
Communications Act.
---------------------------------------------------------------------------

    \101\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \102\ See SNL KAGAN at www.snl.com/interactivex/MultichannelIndustryBenchmarks.aspx.
    \103\ 47 CFR 76.901(f) and notes ff. 1, 2, and 3.
    \104\ See SNL KAGAN at www.snl.com/Interactivex/TopCable 
MSOs.aspx.
    \105\ 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 47 CFR 76.901(f) of the Commission's rules. See 47 CFR 
76.901(f).
---------------------------------------------------------------------------

    38. 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.\106\ The SBA determines that a wireline business is 
small if it has fewer than 1500 employees.\107\ 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.\108\ Based on that data, we conclude that the majority of 
wireline firms are small under the applicable standard. However, 
currently only two entities provide DBS service, which requires a great 
deal of capital for operation: AT&T and DISH Network.\109\ AT&T and 
DISH Network each report annual revenues that are in excess of the 
threshold for a small business. Accordingly, we must conclude that DBS 
service is provided only by large firms.
---------------------------------------------------------------------------

    \106\ http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \107\ NAICs code 517110; 13 CFR 121.201.
    \108\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
    \109\ See 15th Annual Video Competition Report, 28 FCC Rcd at 
1057, Section 27.
---------------------------------------------------------------------------

    39. 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.\110\ 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.\111\ 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.\112\ Thus, a majority of ``All Other 
Telecommunications'' firms potentially affected by the proposals in the 
Further Notice can be considered small.
---------------------------------------------------------------------------

    \110\ http://www.census.gov/cgi-bin/ssssd/naics/naicsrch.
    \111\ 13 CFR 121.201; NAICs code 517919.
    \112\ http://factfinder.census.gov/faces/tableservices.jasf/pages/productview.xhtml?pid+ECN_2012_US.51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    40. RespOrgs. Responsible Organizations, or RespOrgs, 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.\113\ 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.
---------------------------------------------------------------------------

    \113\ See 47 CFR 52.101(b).
---------------------------------------------------------------------------

    41. 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,\114\ and Wireless Telecommunications Carriers (except 
satellite).\115\
---------------------------------------------------------------------------

    \114\ 13 CFR 121.201, NAICS code 517110.
    \115\ Id.

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

[[Page 56742]]

    42. 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.\116\ 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.\117\ 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.\118\ Based 
on that data, we conclude that the majority of Carrier RespOrgs that 
operated with wireline-based technology are small.
---------------------------------------------------------------------------

    \116\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \117\ 13 CFR 120,201, NAICS code 517110.
    \118\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    43. 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.\119\ 
The appropriate size standard under SBA rules is that such a business 
is small if it has 1,500 or fewer employees.\120\ 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.\121\ 
Based on that data, we conclude that the majority of Carrier RespOrgs 
that operated with wireless-based technology are small.
---------------------------------------------------------------------------

    \119\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \120\ 13 CFR 120.201, NAICS code 517120.
    \121\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
---------------------------------------------------------------------------

    44. Non-Carrier RespOrgs. Neither the Commission, the U.S. 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'' \122\ and ``Other Management Consulting 
Services.'' \123\
---------------------------------------------------------------------------

    \122\ 13 CFR 120.201, NAICS code 541890.
    \123\ 13 CFR 120.201, NAICS code 541618.
---------------------------------------------------------------------------

    45. 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).\124\ The SBA has established a size standard for this 
industry as annual receipts of $15 million dollars or less.\125\ Census 
data for 2012 show that 5,804 firms operated in this industry for the 
entire year. Of that number, 5,612 operated with annual receipts of 
less than $10 million.\126\ Based on that data we conclude that the 
majority of Non-Carrier RespOrgs who provide toll-free number (TFN)-
related advertising services are small.
---------------------------------------------------------------------------

    \124\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \125\ 13 CFR 120.201, NAICS code 541890.
    \126\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
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    46. 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.\127\ The SBA has established a size standard 
for this industry of $15 million dollars or less.\128\ 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.\129\ Based on this data, we conclude that a majority 
of non-carrier RespOrgs who provide TFN-related management consulting 
services are small.\130\
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    \127\ http://www.census,gov/cgi-bin/sssd/naics.naicsrch.
    \128\ 13 CFR 120.201, NAICS code 514618.
    \129\ http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ4&prodType=table.
    \130\ 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.
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    47. 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.

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

    48. This Further Notice does not propose any changes to the 
Commission's current information collection, reporting, recordkeeping, 
or compliance requirements.

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

    49. 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.\131\
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    \131\ 5 U.S.C. 603(c)(1)-(c)(4).
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    50. This FNPRM seeks comment on issues that the Commission may 
address in the regulatory fee collection for Fiscal Year 2020. 
Specifically, the FNPRM seeks comment on (i) adding a new fee category 
for non-U.S. licensed satellite operators who have been granted access 
to the U.S. market; (ii) adjusting the apportionment among fee 
categories within the International Bureau; (iii) adjusting TV 
broadcaster regulatory fees for VHF licenses; and (iv) adopting a lower 
regulatory fee for broadcast incubator licensees. Some of these

[[Page 56743]]

issues may affect small entities. For example, revising intra-bureau 
allocations in the International Bureau could result in changes of 
regulatory fees for small entities, if this is adopted. Adjusting 
regulatory fees for TV broadcasters that hold VHF broadcast licenses 
could affect small entities, and ultimately provide them a benefit in 
the form of lower regulatory fees, if the Commission adjusts VHF fees 
in the future. Incubator licensees will likely be small entities and 
adopting a lower regulatory fee for them would benefit small entities. 
These issues in the FNPRM may be addressed in the FY 2020 annual 
regulatory fee notice of proposed rulemaking.

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    51. None.

V. Ordering Clauses

    52. 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 Further Notice of Proposed 
Rulemaking is hereby adopted.

Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2019-22914 Filed 10-22-19; 8:45 am]
 BILLING CODE 6712-01-P