[Federal Register Volume 85, Number 110 (Monday, June 8, 2020)]
[Notices]
[Pages 35086-35088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12493]


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FEDERAL COMMUNICATIONS COMMISSION

[GN Docket No. 18-122, DA 20-586; FRS 16829]


Wireless Telecommunications Bureau Seeks Comment on Optional Lump 
Sum Payments for 3.7-4.2 GHz Band Incumbent Earth Station Relocation 
Expenses

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: In this document, the Wireless Telecommunications Bureau 
(Bureau) seeks comment on the preliminary lump sum categories and 
payment amounts available to Fixed Satellite Service incumbent earth 
station operators as part of the 3.7-4.2 GHz band transition.

DATES: Comments are due June 16, 2020.

ADDRESSES: You may submit comments and reply comments, identified by GN 
Docket No. 18-122, by any of the following methods:
    [ssquf] Electronic Filers: Elections may be filed electronically 
using the internet by accessing the ECFS: http://apps.fcc.gov/ecfs/ in 
docket number GN 18-122.
    [ssquf] Paper Filers: Parties who choose to file by paper must file 
an original and one copy of each filing.
    [ssquf] Filings can be sent 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.
    [ssquf] Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9050 Junction Drive, 
Annapolis Junction, MD 20701.U.S.
    [ssquf] Postal Service first-class, Express, and Priority mail must 
be addressed to 445 12th Street SW, Washington DC 20554.
    [ssquf] Effective March 19, 2020, and until further notice, the 
Commission no longer accepts any hand or messenger delivered filings. 
This is a temporary measure taken to help protect the health and safety 
of individuals, and to mitigate the transmission of COVID-19. See FCC 
Announces Closure of FCC Headquarters Open Window and Change in Hand-
Delivery Policy, Public Notice, DA 20-304 (March 19, 2020). https://www.fcc.gov/document/fcc-closes-headquarters-open-window-and-changes-hand-delivery-policy.
    [ssquf] During the time the Commission's building is closed to the 
general public and until further notice, if more than one docket or 
rulemaking number appears in the caption of a proceeding, paper filers 
need not submit two additional copies for each additional docket or 
rulemaking number; an original and one copy are sufficient.

FOR FURTHER INFORMATION CONTACT: Susan Mort, Wireless 
Telecommunications Bureau, at [email protected] or 202-418-2429.

SUPPLEMENTARY INFORMATION: This is a summary of the Public Notice, 
Wireless Telecommunications Bureau Seeks Comment on Optional Lump Sum 
Payments for 3.7-4.2 GHz Band Incumbent Earth Station Relocation 
Expenses, GN Docket No. 18-122, DA 20-586 (Public Notice), released on 
June 4, 2020. The complete text of the Public Notice is available on 
the Commission's website at https://docs.fcc.gov/public/attachments/DA-20-586A1.pdf or by using the search function for GN Docket No. 18-122 
on the Commission's ECFS web page at www.fcc.gov/ecfs.
    Pursuant to sections 1.415 and 1.419 of the Commission's rules, 47 
CFR 1.415, 1.419, interested parties may file elections on or before 
the date indicated on the first page of this document.
    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).
    Ex Parte Rules: This proceeding shall be treated as a ``permit-but-
disclose'' proceeding in accordance with the Commission's ex parte 
rules. 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 
presenters 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

[[Page 35087]]

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 
section 1.1206(b) of the Commission's rules. In proceedings governed by 
section 1.49(f) of the 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, .xml., .ppt, searchable .pdf). Participants 
in this proceeding should familiarize themselves with the Commission's 
ex parte rules.
    Synopsis: With this Public Notice, the Wireless Telecommunications 
Bureau (the Bureau) invites interested parties to provide additional 
comment on the preliminary lump sum categories and payment amounts 
available to Fixed Satellite Service (FSS) incumbent earth station 
operators as part of the 3.7-4.2 GHz band (C-band) transition.
    In the 3.7 GHz Band Report and Order, the Commission adopted rules 
to make 280 megahertz of mid-band spectrum available for flexible use, 
plus a 20 megahertz guard band, throughout the contiguous United States 
by transitioning existing services out of the lower portion and into 
the upper 200 megahertz of the C-band. The 3.7 GHz Report and Order 
established that new 3.7 GHz Service licensees will reimburse the 
reasonable relocation costs of eligible incumbents, including incumbent 
FSS earth station operators, to transition to the upper 200 megahertz 
of the band. The 3.7 GHz Report and Order established that incumbent 
FSS earth station operators may either accept: (1) Reimbursement for 
their actual reasonable relocation costs by maintaining satellite 
reception; or (2) a lump sum reimbursement ``based on the average, 
estimated costs of relocating all of their incumbent earth stations'' 
to the upper 200 megahertz of the C-band. The 3.7 GHz Report and Order 
directed the Bureau to establish a cost category schedule of the types 
of expenses that incumbents may incur.
    The Commission engaged a third-party contractor, RKF Engineering 
Solutions, LLC (RKF), to assist in identifying costs that incumbents 
might incur and to assist with the development of a cost category 
schedule. With assistance from RKF, the Bureau developed the 3.7 GHz 
Transition Preliminary Cost Category Schedule of Potential Expenses and 
Estimated Costs (Preliminary Cost Catalog), which proposed classes of 
earth stations eligible for lump sum payments but did not specify the 
amounts. The Bureau sought comment on the earth station classes and 
specific costs and prices that should ultimately be included in the 
lump sums. In response, commenters proposed additional classes of earth 
stations, including a separate category for multichannel video 
programming distributor (MVPD) earth stations. Some commenters offered 
methodologies for calculating the lump sum amounts and proposed lump 
sum amounts. Commenters also identified additional transition costs to 
be included in the calculation, such as modulation and encoding 
technology.
    After considering the comments received in response to the Cost 
Catalog Public Notice, the Bureau, with assistance from RKF, has 
updated the classes of earth stations and developed proposed lump sum 
amounts for each class of earth station. The Bureau seeks additional 
comment on the proposed earth station classes and proposed lump sum 
amounts. The Bureau also seeks comment on the methodology for 
determining average estimated costs. Do the modified categories 
accurately reflect the relevant classes of earth stations? Do the lump 
sum amounts reflect the average estimated costs of relocation for each 
class of earth station, as required by the 3.7 GHz Report and Order?
    Updated Classes of Earth Stations. The Bureau proposes a modified 
list of earth station classes to more accurately reflect the types of 
earth stations currently operating in the contiguous United States and 
to account for the additional costs that MVPD earth station operators 
may incur during the transition. To determine the relevant lump sum 
amount, the threshold question is whether an earth station is used for 
MVPD or non-MVPD operations. Non-MVPD earth station operators would be 
eligible to receive the base amounts for the relevant class of earth 
station(s) they operate (e.g., receive only single-feed; receive only 
multi-feed, small multi-beam, etc.). MVPD earth station operators would 
be eligible to receive the relevant base amount, as well as the amount 
associated with any relevant technology upgrades (e.g., Integrated 
Receiver/Decoder (IRD) replacements) that would be required to 
transition each eligible MVPD earth station.
    Methodology To Calculate Lump Sum Amounts. The Bureau calculated 
the base lump sum amounts using the relevant earth station cost 
components from the Preliminary Cost Catalog, with adjustments based on 
feedback from commenters. For each cost item from the Preliminary Cost 
Catalog, the Bureau determined the likely number of instances various 
cost items would be used in an average transition for that earth 
station class, i.e., how many modifications or component replacements 
were needed for a given type of earth station in a typical transition. 
The cost of the modification or replacement used for the lump sum 
calculation was the average cost of the range from the Preliminary Cost 
Catalog. Depending on the type of earth station, the Bureau input 
different modifications or component changes based on the typical range 
of changes that would be necessary for this type of earth station 
transition. Some cost elements like soft costs, travel, and filtering 
apply to all types of earth stations, whereas monthly rental earth 
stations, fiber transmitters, and other cost elements only apply to 
more complex earth station transitions.
    The Bureau seeks comment on the methodology for calculating the 
lump sum base amounts. Do the assumptions we make accurately represent 
the average transition for each class of earth station? For costs that 
will not be necessary in all transitions, in what percentage of typical 
transitions for each earth station class would those cost items be 
necessary? For example, if it is estimated that a rental antenna is 
needed for 33% of the transitions, the lump sum calculation includes 
33% of the cost of such an item. We seek comment on this approach and 
invite commenters to provide specific data or information on the 
percentages of typical transitions that would require various expenses.
    The Bureau lists two types of technology upgrades for MVPDs (MVPD 
downlink receiver replacement and program source uplink transmitter 
replacement and associated changes to shift to higher order modulation 
techniques) as separate line items and do not include them in the earth 
station base lump sum amounts. As indicated, these specific technology 
upgrade lump sum payments can be claimed by MVPD operators only for 
those MVPD earth stations where upgrades are necessary for the 
continued provision of existing services after the transition. Similar 
to the calculation method for earth station lump sum base amounts, the 
Bureau calculates the technology upgrade lump sum amounts from the 
average cost of relevant cost elements using a typical number of 
channels that will need to be upgraded, the amount of equipment to be 
replaced, and other expenses

[[Page 35088]]

necessary to achieve the technology upgrade. The Bureau seeks comment 
on whether the method of calculating the lump sum payment for 
technology upgrades adequately addresses the needs of the stakeholders 
that may need to replace equipment to operate higher order modulation 
technologies to meet service demands in the remaining 200 megahertz of 
the C-band. Should there be additional technology upgrade lump sum 
options based on a more specific demonstration of the level of 
equipment replacement that is needed? What type of demonstration should 
we require from MVPD earth station operators to receive technology 
upgrade lump sum payments? Are there other methods to address the 
technology upgrade needs for those interested in lump sum payments? How 
many received channels will need technology upgrades in a typical 
transition? What percentage of MVPD earth station sites will need 
technology upgrades? What percentage of various cost factors need to be 
deployed in the typical transition?
    Lump Sum Amounts. The Bureau seeks comment on the base lump sum 
amounts for each class of earth station as well as the technology 
upgrade lump sum amounts.

------------------------------------------------------------------------
                                                             Average
     Estimated lump sum payments per earth station       estimated cost
                                                               ($)
------------------------------------------------------------------------
                         Base Lump Sum Payments
------------------------------------------------------------------------
Receive-Only Earth Station (ES) Single-feed...........             5,217
Receive-Only ES Multi-feed............................            22,233
Receive-Only Small Multi-beam (2-4 beams) ES..........            43,159
Receive-Only Large Multi-beam (5+ beams) ES...........            53,381
Gateway ES (bi-directional)...........................            20,726
Temporary Fixed ES (mobile Electronic News Gathering               3,060
 trucks)..............................................
------------------------------------------------------------------------
 Technology Upgrade Lump Sum Payments for Qualifying MVPD Earth Stations
------------------------------------------------------------------------
MVPD Downlink Technology Upgrades (per earth station).            70,782
Program Source Uplink Technology Upgrades.............           156,932
------------------------------------------------------------------------

    After this additional comment period, and consistent with the 3.7 
GHz Report and Order, the Bureau will consider the record compiled on 
these issues and publish the final lump sum amounts and provide 
instructions for making such an election.

Amy Brett,
Chief of Staff, Competition and Infrastructure Policy Division, 
Wireless Telecommunications Bureau.
[FR Doc. 2020-12493 Filed 6-5-20; 8:45 am]
BILLING CODE 6712-01-P