[Federal Register Volume 85, Number 150 (Tuesday, August 4, 2020)]
[Notices]
[Pages 47209-47211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17058]


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FEDERAL COMMUNICATIONS COMMISSION

[GN Docket No. 18-122, IB Docket No. 20-205; DA 20-802; FRS 16974]


Wireless Telecommunications Bureau Releases Final Cost Category 
Schedule for 3.7-4.2 GHz Band Relocation Expenses and Announces Process 
and Deadline for Lump Sum Elections

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: In this document, the Wireless Telecommunications Bureau 
(Bureau) releases the 3.7 GHz Transition Final Cost Category Schedule 
of Potential Expenses and Estimated Costs, announces the optional lump 
sum payment amounts for which incumbent Fixed Satellite Service earth 
station operators are eligible, and details the process and deadline 
for electing to receive lump sum payments.

DATES: Optional Lump Sum Elections are due August 31, 2020.

ADDRESSES: You may submit elections, identified by IB Docket No. 20-
205, by any of the following methods:
     Electronic Filers: Elections may be filed electronically 
using the internet by accessing the ECFS: http://apps.fcc.gov/ecfs/ in 
docket number IB 20-205.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing.
    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.
     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.
     Postal Service first-class, Express, and Priority mail 
must be addressed to 445 12th Street SW, Washington, DC 20554.
     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.
     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 Commission's 
document (Public Notice), GN Docket No. 18-122, IB Docket No. 20-205; 
DA 20-802, released on July 30, 2020. The complete text of this 
document and the attached Cost Catalog is available on the Commission's 
website at https://www.fcc.gov/document/wtb-releases-final-c-band-cost-category-and-lump-sum-public-notice or by using the search function for 
GN Docket No. 18-122 or IB Docket No. 20-205 on the Commission's ECFS 
web page at www.fcc.gov/ecfs.
    Pursuant to Sec. Sec.  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).

Synopsis

    With the Public Notice, the Wireless Telecommunications Bureau (the 
Bureau) releases the 3.7 GHz Transition Final Cost Category Schedule of 
Potential Expenses and Estimated Costs (Cost Catalog), announces the 
optional lump sum payment amounts for which incumbent Fixed Satellite 
Service (FSS) earth station operators are eligible, and provides the 
process and deadline for electing to receive lump sum payments.
    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 the Cost Catalog Public Notice. 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. After review of the record, 
the Bureau issued the Lump Sum Comment Public Notice seeking further 
comment on a revised list of earth station classes, preliminary lump 
sum payment amounts, and the

[[Page 47210]]

methodology for calculating those amounts. After considering the 
comments in response to the Cost Catalog Comment Public Notice and the 
Lump Sum Comment Public Notice, the Bureau now releases the final Cost 
Catalog and lump sum payment amounts.
    Final Cost Catalog. The Public Notice provides clarification and 
additional information on how reimbursement payments and lump sum 
amounts should be counted and on how to use the Cost Catalog. The 
Public Notice also describes several updates to the cost items and 
tables contained in the Cost Catalog that the Bureau, with assistance 
from RKF, determines to be expenses that incumbents are likely to incur 
in a typical transition. For example, in response to information from 
commenters, the Bureau clarifies or adds daily or monthly rental 
expenses for various items that we expect would be incurred in a 
typical transition. The final Cost Catalog also includes additional 
technical equipment components that were not originally included in the 
tables, but that parties persuasively argue are likely to be necessary 
to complete the transition. The final Cost Catalog also updates the 
cost estimates previously included in the preliminary cost catalog to 
account for reasonable changes proposed by commenters.
    Lump Sum Payments. The Cost Catalog sets forth the amounts that 
will be available to incumbent earth station operators electing to 
receive a lump sum payment in place of their actual reasonable 
relocation costs. Consistent with the 3.7 GHz Report and Order, the 
lump sum payment amounts are based on the average, estimated costs of 
transitioning incumbent earth stations to the upper 200 megahertz of 
the C-band. Consistent with the Bureau's proposed approach in the Lump 
Sum Comment Public Notice, the Public Notice and final Cost Catalog 
continue to use a variation of an expected value approach to calculate 
both the base lump sum payments as well as the technology upgrade 
installation costs for MVPD incumbent earth stations. Specifically, for 
both the base lump sum payments (for all antenna types) and for the 
per-site MVPD technology upgrade installation payment, where we 
determine that a cost would be part of a typical transition for a 
particular antenna type or class of earth station and not an outlier 
(in other words, where it meets a minimum threshold of likelihood that 
it would be incurred in a typical transition), we multiply the average 
estimated cost (calculated as the average of the range of costs 
included in the Cost Catalog) for that particular cost item by the 
probability that the particular antenna type or class of earth station 
is likely to incur it. While the methodology for calculating lump sums 
generally remains the same as described in the Lump Sum Comment Public 
Notice, such methodology accounts for the updates to the lump sum 
categories and amounts made in response to comments on the Lump Sum 
Comment Public Notice.
    The lump sum amounts for all MVPD incumbent earth stations include 
the average, estimated costs associated with installing any necessary 
compression-related technology upgrades at an MVPD earth station site, 
but they do not include the cost to purchase the integrated receivers/
decoders or transcoders for those technology upgrades. After review of 
the record, the Bureau finds that the selection and purchase of 
compression equipment for these technology upgrades--such as integrated 
receivers/decoders and transcoders--are an integral part of the 
satellite operators' nationwide transition process and, as such, they 
should be considered as part of the cost associated with the transition 
of satellite transponders. Thus, satellite operators, in cooperation 
with programmers, will be responsible for selecting, purchasing, and 
delivering the necessary compression equipment to respective earth 
stations. In contrast, the costs associated with physically installing 
the compression equipment at the earth station site are more 
appropriately assigned to the earth station operator (and are thus 
included in the MVPD lump sum amount), given that a satellite operator 
will not usually have direct access to an earth station site, and the 
earth station owner will be the one exercising direct control over that 
process. Accordingly, all MVPD earth station operators that elect the 
lump sum will receive the relevant lump sum base amounts, including the 
estimated costs to install integrated receivers/decoders and 
transcoders (including labor, cabling, and any necessary equipment for 
such installation, as described in more detail below). The installation 
costs for technology upgrades will be available to all MVPD earth 
station operators that elect the lump sum.
    The Public Notice makes further updates to the lump sum categories, 
which are included in the Lump Sum Table of the Cost Catalog, to 
address additional information and arguments that commenters raise 
regarding the expected transition process. The Bureau clarifies that 
the lump sum base payments in the Lump Sum Table refer to each 
operational and registered antenna or dish at an incumbent earth 
station site (i.e., each operational and registered antenna or dish 
included in an earth station IBFS registration, consistent with the 
requirements in the 3.7 GHz Report and Order), with the above-described 
exception for MVPD technology upgrade installation lump sum claims 
(which are available on a per-site basis). Accordingly, an incumbent 
earth station operator's lump sum payments for each incumbent earth 
station site will be calculated by the amount listed in the Lump Sum 
Table for the relevant antenna multiplied by the number and type of 
antennas or dishes properly included in that incumbent earth station 
site's registration (and for MVPDs, will include the per-site 
technology upgrade installation amount). For example, if an incumbent 
earth station registration has two registered antennas that are 
``receive only ES single-feed,'' an incumbent earth station operator 
would be eligible to receive the lump sum listed in the Lump Sum Table 
for both registered antennas associated with that particular earth 
station site (or registration), although only one technology upgrade 
installation payment (if the earth station operator is an MVPD).
    The final Cost Catalog includes additional cost items in the lump 
sum amounts where the Bureau determined that those cost items are part 
of a typical transition for the relevant earth station class. For 
example, in response to information from commenters, the Bureau updates 
the lump sum base amounts to include application modification fees, the 
cost to purchase and install new feed horns on some dishes, as well as 
costs associated with system integration of modified earth stations. 
The Bureau also updates the base lump sum amounts for single-feed, 
multi-feed, and multi-beam antennas based on additional information in 
the record that demonstrates the likelihood that those antennas may 
require repointing to a different satellite and dual illumination 
during the transition. First, the Bureau increases the base lump amount 
for single-feed antennas to account for the costs of repointing to a 
different satellite (including dual illumination costs), which were not 
previously included in the proposed lump sum amount for that class of 
antennas. Second, based on information in the record, he Bureau adjusts 
the lump sum amounts for multi-feed and multi-beam antennas to account 
for a lower percentage of those antennas

[[Page 47211]]

needing dual illumination than previously estimated.
    Finally, the Public Notice establishes the process for electing 
lump sum payments. Consistent with the 3.7 GHz Report and Order, 
incumbent earth station owners must make their lump sum payment 
election no later than August 31, 2020. Because IBFS registrations do 
not contain sufficient information to determine the classes of earth 
stations/antennas that are registered at each earth station site or to 
determine whether an earth station site is an MVPD earth station, the 
Bureau requires earth station owners to certify that the information 
they provide in their lump sum election--including the antenna type and 
class of earth station--is accurate to the best of their knowledge.
    Incumbent earth station owners choosing the lump sum election must 
file in IB Docket No. 20-205, with the following information for each 
of that operator's incumbent earth station sites:
    1. Licensee/Registrant/Applicant Name,
    2. Earth Station Callsign,
    3. Site ID,
    4. Antenna ID,
    5. Number of antennas associated with that Antenna ID,
    6. Site address,
    7. GPS coordinates of the earth station,
    8. File Number(s) of current authorization and/or pending 
application,
    9. Confirmation that the earth station meets the definition of 
incumbent earth station under 47 CFR 27.1411(b)(3) and 25.138(c), 
including indication of whether earth station appears on the 
International Bureau's final list of eligible earth stations,\1\
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    \1\ See International Bureau Releases Preliminary List of 
Incumbent Earth Stations in the 3.7-4.2 GHz Band in the Contiguous 
United States, Public Notice, DA 20-703, at 1-2 (IB July 6, 2020). 
We note that the International Bureau will have released the final 
list of incumbent earth stations prior to the election deadline.
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    10. Category of lump sum election for each registered antenna at 
that registered earth station site (e.g. Receive Only ES Single-feed; 
Receive Only ES Multi-feed; Small Multi-beam (2-4 beams) ES, etc.),
    11. Whether earth station site is an MVPD earth station site (to 
claim the per-site technology upgrade installation amount),
    12. Total lump sum amount claimed for that earth station 
(calculated by the number of registered antennas at that incumbent 
earth station multiplied by the relevant lump sum base amount, plus 
technology upgrade installation amount if MVPD), and
    13. Whether the incumbent earth station will be transitioned to the 
upper 200 megahertz in order to maintain C-band services or will 
discontinue C-band services.
    The lump sum election must include a certification from the 
incumbent earth station owner (if an individual) or a duly authorized 
representative with authority to bind the station, which certifies to 
the following:
    1. That the information contained in the lump sum election is true 
and accurate to the best of the incumbent earth station owner (if an 
individual) or duly authorized representative knowledge;
    2. That all earth stations for which the lump sum is being elected 
will not have ceased operation more than 90 days before the deadline 
for the lump sum election;
    3. That, if the incumbent earth station owner intends to continue 
to receive content from a satellite operator after the transition at 
any of its earth station antennas, it accepts responsibility for 
undertaking the necessary transition actions in accordance with the 
timelines set forth in the satellite operators' Transition Plans;
    4. That the incumbent earth station owner agrees to coordinate with 
the relevant space station operator as necessary to complete the 
transition;
    5. An irrevocable release of claims for reimbursement for actual 
reasonable relocation costs from the Relocation Payment Clearinghouse, 
eligible satellite operators, or video programmers; and
    6. An irrevocable release of claims against the payor and/or 
Commission with respect to any dispute about the amount received.

Federal Communications Commission.
Amy Brett,
Chief of Staff, Competition and Infrastructure Policy Division, 
Wireless Telecommunications Bureau.
[FR Doc. 2020-17058 Filed 8-3-20; 8:45 am]
BILLING CODE 6712-01-P