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Home » 2002 Issues » 67 FR (07/12/2002) » 02-17308. Assessment and Collection of Regulatory Fees For Fiscal Year 2002

  02-17308. Assessment and Collection of Regulatory Fees For Fiscal Year 2002  

  • Start Preamble Start Printed Page 46298

    AGENCY:

    Federal Communications Commission.

    ACTION:

    Final rule.

    SUMMARY:

    The Commission will revise its Schedule of Regulatory Fees in order to recover the amount of regulatory fees that Congress has required it to collect for fiscal year 2002. Section 9 of the Communications Act of 1934, as amended, provides for the annual assessment and collection of regulatory fees for annual “Mandatory Adjustments” and “Permitted Amendments” to the Schedule of Regulatory Fees.

    DATES:

    September 9, 2002.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    Roland Helvajian, Office of Managing Director at (202) 418-0444.

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    Adopted: July 3, 2002.

    Released: July 5, 2002.

    By the Commission: Commissioner Copps concurring and issuing a statement.

    Table of Contents

    TopicParagraph Nos.
    I. Introduction1
    II. Background4
    III. Discussion:
    A. Development of FY 2002 Fees
    i. Adjustment of Payment Units9
    ii. Calculation of Revenue Requirements10
    iii. Recalculation of Fees and Procedural Changes11
    B. NPRM Issues and Comments Received14
    i. Amateur Vanity Call Signs16
    ii. Commercial Mobile Radio Service Messaging17
    iii. Interstate Telecommunications Service Providers19
    C. Procedures for Payment of Regulatory Fees21
    i. Annual Payments of Standard Fees22
    ii. Installment Payments for Large Fees23
    iii. Advance Payments of Small Fees24
    iv. De Minimis Fee Payment Liability25
    v. Standard Fee Calculations and Payments26
    vi. Mandatory Use of FCC Registration Number (FRN)29
    vii. Population Count of AM and FM Radio Stations30
    viii. Technical Changes32
    D. Schedule of Regulatory Fees35
    E. Enforcement36
    IV. Procedural Matters:
    A. Ordering Clause37
    B. Authority and Further Information38
    Attachment A—Final Regulatory Flexibility Analysis
    Attachment B—Sources of Payment Unit Estimates for FY 2002
    Attachment C—Calculation of Revenue Requirements and Pro-Rata Fees
    Attachment D—FY 2002 Schedule of Regulatory Fees
    Attachment E—Comparison Between FY 2001, FY 2002 Proposed and FY 2002 Final Regulatory Fees
    Attachment F—Detailed Guidance on Who Must Pay Regulatory Fees
    Attachment G—Description of FCC Activities
    Attachment H—Factors, Measurements, and Calculations that Determine Station Signal Contours and Population Coverages
    Attachment I—Parties Filing Comments and Reply Comments
    Attachment J—AM and FM Radio Regulatory Fees

    I. Introduction

    1. By this Report and Order, the Commission concludes a proceeding to revise its Schedule of Regulatory Fees to collect the amount of regulatory fees that Congress, pursuant to section 9(a) of the Communications Act, as amended, has required us to collect for Fiscal Year (FY) 2002.[1]

    2. We must collect $218,757,000 through regulatory fees to recover the costs of our competition, enforcement, spectrum management, and consumer information activities for FY 2002.[2] See Attachment G for a description of these activities. This amount is $18,611,000 or approximately 9.3% more than the amount designated for recovery through regulatory fees for FY 2001.[3] We are revising our fees in order to collect this amount as illustrated in a new fee schedule in Attachment D.

    3. In revising our fees, we adjusted the payment units and revenue requirement for each service subject to a fee, consistent with section 159(b)(2). The Schedule of Regulatory Fees is set forth in §§ 1.1152 through 1.1156 of the Commission's rules.[4]

    II. Background

    4. Section 9(a) of the Communications Act of 1934, as amended, authorizes the Commission to assess and collect annual regulatory fees to recover its regulatory costs.[5] In our FY 1994 Fee Order,[6] we adopted the Schedule of Regulatory Fees that Congress initially Start Printed Page 46299established, and prescribed rules to govern payment of the fees.[7]

    5. For fiscal years after FY 1994, we modified the fee schedule to increase the fees in accordance with the amounts Congress required us to collect in each succeeding fiscal year. Section 9(b)(2), entitled “Mandatory Adjustments,” requires that we revise the Schedule of Regulatory Fees to reflect the amount that Congress annually requires us to recover through regulatory fees.[8] Section 9(b)(3), entitled “Permitted Amendments,” requires that we determine annually whether additional adjustments to the fees are warranted, taking into account factors that are in the public interest, as well as issues that are reasonably related to the payer of the fee. These amendments permit us to “add, delete, or reclassify services in the Schedule to reflect additions, deletions or changes in the nature of its services * * *” [9]

    6. Section 9(i) requires that we develop accounting systems necessary to adjust our fees pursuant to changes in the cost of regulating various services that are subject to a fee, and for other purposes.[10] The Commission is planning a new improved cost accounting system, which we anticipate to be operational after sufficient testing. For FY 1997, we relied for the first time on cost accounting data to identify our regulatory costs and to develop our FY 1997 fees based upon these costs. Also, in FY 1997, we found that some fee categories received disproportionately high cost allocations. We adjusted for these high cost allocations by redistributing the costs, and maintained a 25% limit on the extent in which service fee categories could be increased. We believed that this 25% limit would enable cost-based service fees to be implemented more gradually over time. We thought that this methodology, which we continued to use for FY 1998, would enable us to develop a regulatory fee schedule that more closely reflected our cost of regulation. Over time, as the cost of regulation increased or decreased, this methodology would enable us to revise the fee schedule to reflect those services whose regulatory costs had changed.

    7. However, we found that developing a regulatory fee structure based on available but insufficiently detailed cost information sometimes did not permit us to recover the amount that Congress required us to collect. In some instances, the large increases in the cost of regulation could not be adjusted to an acceptable and balanced level. We concluded that it would be best to discontinue attempts to base the schedule on our available cost data. Instead, we chose to adjust the FY 1999 through FY 2001 fees through “Mandatory Adjustments” only. We have found no reason to deviate from this policy for FY 2002. However, we are applying the “Mandatory Adjustments” as we did in FY 2001 to better incorporate changes in payment units. Finally, section 9(b)(4)(B) requires us to notify Congress, if there are any “Permitted Amendments,” 90 days before those amendments go into effect.[11] However, since we are making no “Permitted Amendments,” this section does not apply for FY 2002.

    8. We also amended the rules governing our regulatory fee program based upon our prior experience in administering the program.[12] These changes are discussed in more detail in paragraphs 29-34.

    III. Discussion

    A. Development of FY 2002 Fees

    i. Adjustment of Payment Units

    9. In calculating FY 2002 regulatory fees for each service, we adjusted the estimated payment units for each service to reflect substantial changes in payment units for many services since adopting our FY 2001 fees. We obtained our estimated payment units through a variety of means, including our licensee data bases, actual prior year payment records, and industry and trade group projections. Whenever possible, we verified these estimates from multiple sources to ensure accuracy of these estimates. Attachment B summarizes how revised payment units were determined for each fee category.[13]

    ii. Calculation of Revenue Requirements

    10. We compared the sum of all estimated revenue requirements for FY 2001 to the amount that we must collect for FY 2002, which is approximately 9.3% more total revenue than in FY 2001. We increased each FY 2001 fee revenue category estimate by 9.3% to provide a total FY 2002 revenue estimate of $218,757,000. Attachment C provides detailed calculations showing how we determined the revised revenue amounts to be raised for each service.

    iii. Recalculation of Fees and Procedural Changes

    11. Once we determined the revenue requirement for each service and class of licensee, we divided the revenue requirement by the number of estimated payment units (and by the license term for “small” fees) to obtain actual fee amounts for each fee category. These calculated fee amounts were then rounded in accordance with section 9(b)(2) of the Act. See Attachment C.

    12. Once we established our tentative FY 2002 fees, we evaluated proposals made by Commission staff concerning “Permitted Amendments” to the Fee Schedule and to our collection procedures. We examined the results of our calculations to determine if further adjustments of the fees and/or changes to payment procedures were warranted based upon the public interest and other criteria established in 47 U.S.C. 159(b)(3). Unless otherwise noted herein, nothing else in this proceeding is intended to change any policies or procedures established or reaffirmed in the FY 2001 Order (66 FR 36177).

    13. Finally, we have incorporated, as Attachment F, Guidance containing detailed descriptions of each fee category, information on the individual or entity responsible for paying a particular fee and other important information designed to assist potential fee payers in determining the extent of their fee liability, if any, for FY 2002.

    B. NPRM Issues and Comments Received

    14. The Commission issued a Notice of Proposed Rulemaking (NPRM), adopted on March 22, 2002, setting forth a proposed fee schedule for FY 2002 based on the methodology used in FY 2001. The NPRM also requested comment on certain administrative issues, including proposals related to AM and FM population calculation errors, payment of fees using credit cards, the imposition of a processing fee for delinquent fee payments, and refunds involving less than $10.

    15. In response to the NPRM, we received comments from AT&T; Verizon; the American Association of Paging Carriers; the Allied Personal Communications Industries Association of California; Blooston, Mordkofsky, Dickens, Duffy & Prendergast; and from two amateur radio licensees. Replies were filed by Verizon and American Mobile Telecommunications Association. Arch Wireless, along with the American Association of Paging Start Printed Page 46300Carriers and the Law Firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast, also filed a Notice of Ex Parte Presentation. None of the parties commented on the NPRM's administrative proposals. The comments of AT&T and Verizon relate to whether the Commission should use more current data or a different methodology in setting the Interstate Telecommunications Service Providers (ITSP) regulatory fee. The comments of the CMRS messaging industry object to the increase proposed to the per unit fee for CMRS messaging providers. Amateur radio commenters object to paying regulatory fees when renewing their authorizations. This Report and Order discusses each of these issues and finds no basis for changing the approach proposed in the NPRM.

    i. Amateur Vanity Call Signs

    16. Amateur licensees Steven Karty and William J. Hanrahan support the payment of a regulatory fee for the initial administrative cost actually incurred by the Commission, but question why the amateur vanity call sign fee must be paid upon renewal. William J. Hanrahan also suggests that there be no cost distinction between vanity call signs and systematically assigned call signs. Section 9 of the Communications Act, as amended, provides for the recovery of the Commission's costs associated with its enforcement, policy and rulemaking, user information, and international activities.[14] Every day, Commission staff are engaged in activities involving amateur vanity call signs, such as protecting the assignment of vanity call signs, investigating complaints on the improper or illegal usage of call signs, requests for call signs that are already assigned to someone else, and all related research that is necessary to insure the proper assignment of call signs. Therefore, because the Commission continues to incur costs on vanity call signs even after the issuance or renewal of amateur vanity call signs, we believe that it is appropriate to assess such a regulatory fee upon the renewal of amateur vanity call sign licenses.

    ii. Commercial Mobile Radio Service (CMRS) Messaging

    17. Allied Personal Communications Industries Association of California (“Allied”) argues that the CMRS Messaging fee of $0.08 per unit represents a 60% increase from last year's per unit fee of $0.05, rather than an increase of 9.3% that Congress requires us to collect.[15] Allied further contends that the methodology for calculating the current fee schedule for CMRS messaging be changed from a per unit basis to an interstate revenue basis.[16] The American Association of Paging Carriers (“AAPC”) and the law firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast (“BMDDP”) also raise the same issue stating that the per unit fee for CMRS Messaging has increased 60%, far beyond the 9.3% increase intended by Congress.[17] Furthermore, AAPC also discusses the impact of using an estimate of 23.6 million units as the basis for calculating CMRS Messaging fees, and whether a higher estimate (e.g. 38.9 million or even 45.3 million units) should not be used.[18] The law firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast also argues that an $0.08 per unit regulatory fee would be disastrous to an already fragile paging industry whose businesses are generally defined as “small” or “very small” businesses.[19] BMDDP also argues that because these businesses are small and community oriented, there is a great deal of customer loyalty to these local businesses, which is likely to change with declining revenues and higher regulatory fees.[20] And finally, BMDDP argues that historically speaking, the Commission has followed a policy of gradualism in protecting fledging telecommunications industries and small businesses, particularly if this policy will further the public interest.[21] In an oral Ex Parte presentation, Arch Wireless, Inc. (“Arch”), along with the American Association of Paging Carriers and the law firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast, suggested that the Commission revise its methodology and use revenues, rather than estimated CMRS messaging units, as the basis for configuring regulatory fees in the future.[22]

    18. The 9.3% increase has been applied to the total revenue required to be collected from the CMRS Messaging industry, not to the per unit fee assessed in FY 2001. The FY 2002 unit fee results from dividing this new revenue requirement by the estimated number of units which we believe will be reported and a fee paid for FY 2002. While using a higher unit estimate of “38.9 or even 45.3 million units” would significantly lower the per unit fee, the commenters have not demonstrated that those estimates accurately represent the number of paying units currently in use by the messaging industry. Furthermore, the commenters have provided no basis to substantiate the claim that a $0.03 annual increase per unit will be damaging to the industry. With respect to the suggestion that revenues be used as the basis for determining regulatory fees for CMRS messaging, this suggestion will require further consideration, particularly in determining whether a comprehensive source of revenue information is available for all entities engaged in providing CMRS messaging services.

    iii. Interstate Telecommunications Service Providers (ITSP)

    19. AT&T Corporation (“AT&T”) asserts that the current regulatory fees mechanism does not conform to the methodology used for assessment and collection of universal service support and requests the Commission, to be consistent, reduce the time lag between the accrual of revenues and the payment of regulatory fees.[23] AT&T argues that this time lag between assessment and collection unfairly disadvantages certain carriers and reduces competition.[24] In revising its schedule of fees, the Commission follows a rigid time schedule that incorporates such steps as collecting data, reviewing the information, seeking public comments and reply comments, submitting a 60-day or 90-day notice to OMB and Congress, respectively, as well as to allow sufficient time for review and adoption of the Report and Order. Hence, AT&T's suggestion to use more current data from FCC Form 499-Q (submitted by carriers on August 1, 2002) is simply impractical given our rigid time schedule.[25] In addition, AT&T also notes that our fee calculations are based on 2001 revenue data, and since FY 2002 regulatory fees are not paid until September 2002, a time lag exists that could alter the regulatory rate for ITSP fees, which can be rectified by the use of FCC Form 499-Q (data from second quarter 2002). Carriers have not yet filed second Start Printed Page 46301quarter 2002 revenues in Form 499-Q filings, and in any case, Form 499-Q lacks sufficient detail to permit calculation of the regulatory fee base. However, for purposes of calculating ITSP regulatory fees, what is most important is the submission of a comprehensive data form that meets our rigid time schedule, and FCC Form 499-A serves this purpose well. Although FCC Form 499-Q may reflect more current revenues data, we believe that it is not submitted with sufficient detail to permit carriers to complete Form 159-W, which is used as the basis for calculating and paying the Interstate Telecommunications Service Providers (ITSP) fee obligation.

    20. AT&T also suggests that the Commission simultaneously modify its regulatory fee collections methodology from a historical revenue-based assessment to a connection and capacity-based mechanism if and when the Commission modifies its universal service contribution methodology.[26] In the Universal Service Contribution Methodology Further Notice, we specifically sought comment on the appropriate basis for calculating regulatory fees if the Commission were to adopt a connection and capacity-based universal service contribution methodology.[27] Until we resolve the issue of how contributions to universal service should be calculated, contemplating any revision to our regulatory fee methodology would be premature.

    C. Procedures for Payment of Regulatory Fees

    21. We are retaining the procedures that we have established for the payment of regulatory fees. See paragraphs 22-24. Section 9(f) requires that we permit “payment by installments in the case of fees in large amounts, and in the case of small amounts, shall require the payment of the fee in advance for a number of years not to exceed the term of the license held by the payer.” See 47 U.S.C. 159(f)(1). Consistent with section 9(f), we are again establishing three categories of fee payments, based upon the category of service for which the fee payment is due and the amount of the fee to be paid. The fee categories are: (1) “Standard” fees, (2) “large” fees, and (3) “small” fees.

    i. Annual Payments of Standard Fees

    22. As we have in the past, we are treating regulatory fee payments by certain licensees as “standard fees” which are those regulatory fees that are payable in full on an annual basis. Payers of standard fees are not required to make advance payments for their full license term and are not eligible for installment payments. All standard fees are payable in full on the date we establish for payment of fees in their regulatory fee category. The payment dates for each regulatory fee category will begin September 10, 2002 and end at close of business September 25, 2002.

    ii. Installment Payments for Large Fees

    23. While time constraints will again preclude an opportunity for installment payments, regulatees in any category of service with a liability of $12,000 or more may choose to pay these fees on the last date that fee payments may be submitted. The date for installment payments will end at close of business on September 25, 2002.

    iii. Advance Payments of Small Fees

    24. As we have in the past, we are treating regulatory fee payments by certain licensees as “small” fees subject to advance payment consistent with the requirements of section 9(f)(2). Advance payments will be required from licensees of those services that we decided would be subject to advance payments in our FY 1994 Report and Order, and to those additional payers noted.[28] Payers of advance fees will submit the entire fee due for the full term of their licenses when filing their initial, renewal, or reinstatement application. Regulatees subject to a payment of small fees shall pay the amount due for the current fiscal year multiplied by the number of years in the term of their requested license. In the event that the required fee is adjusted following their payment of the fee, the payer would not be subject to the payment of a new fee until filing an application for renewal or reinstatement of the license. Thus, payment for the full license term would be made based upon the regulatory fee applicable at the time the application is filed. The starting date for payment of small fees established in this proceeding is September 10, 2002.

    iv. De Minimis Fee Payment Liability

    25. As we have in the past, regulatees whose total regulatory fee liability, including all categories of fees for which payment is due by an entity, amounts to less than $10 will be exempted from fee payment in FY 2002.

    v. Standard Fee Calculations and Payment Dates

    26. For licensees and permittees of Media (formerly Mass Media) services, we propose that the responsibility for payment of regulatory fees rests with the holder of the permit or license on October 1, 2001. However, in instances where a Media service license or authorization is transferred or assigned after October 1, 2001, and arrangements to pay have not been made between the two parties, the fee is still due and must be paid by the licensee or holder of the authorization on the date that the fee payment is due. For licensees, permittees and holders of other authorizations in the Wireline Competition Bureau (formerly Common Carrier) and Cable Services (presently within the Media Bureau) whose fees are not based on a subscriber, unit, or circuit count, we are proposing that fees be paid for any authorization issued on or before October 1, 2001. A pending change in the status of a license or permit that is not granted as of that date is not taken into account, and the fee is based on the authorization that existed on October 1, 2001.

    27. For regulatees whose fees are based upon a subscriber, unit or circuit count, such as cable subscriber services and Commercial Mobile Radio Service (CMRS) cellular, mobile, and messaging services, the number of a regulatees' subscribers, units or circuits on December 31, 2001, will be used to calculate the fee payment.[29] A pending Start Printed Page 46302change in the status of a license or permit that is not granted as of that date is not effective, and the fee is based on the classification that existed on that date. Where a license or authorization is transferred or assigned after December 31, 2001, the fee shall be paid by the licensee or holder of the authorization on the date that the payment is due. For facilities-based common carriers with active international bearer circuits, the fee is based on the circuit count as of December 31, 2001.

    28. Because of the time constraint in paying regulatory fees, the Commission highly recommends that entities submitting more than twenty-five (25) Form 159-C's use the electronic fee filer program when sending in their regulatory fee payment. This will not only reduce errors that can result, but also reduce the amount of paperwork that is received by the Commission. Furthermore, as was the practice last year, the Commission will, for the convenience of payers, accept fee payments made in advance of the normal formal window for the payment of regulatory fees.

    vi. Mandatory Use of FCC Registration Number (FRN)

    29. Pursuant to MD Docket No. 00-205 adopted on August 24, 2001 effective December 3, 2001 regulatory fee filers are required to provide FRN's with regulatory fee payments.[30] This matter was first noted in the FY 2001 Regulatory Fee NPRM, to which the Commission received no comments. Regulatory fee payments received without an FRN will be retained by the Agency. The FCC will send the filer a letter notifying them that the payment was received without an FRN and that proper credit for the payment will not occur until the FRN is provided. The filer may receive dunning notices from the FCC until the appropriate FRN is provided for the payment.

    vii. Population Count of AM and FM Radio Stations

    30. The population count for radio stations is not derived merely by a census count of the surrounding community, but from a formula that incorporates various indices such as power, tower size, class size, and other technical attributes. The methodology for calculating the population count is listed in Attachment H of this Report and Order. Because a number of components are used to calculate the population city grade of each station, it is possible that in some instances the calculation of the population count and related fee may inadvertently be incorrectly stated in the Media Regulatory Fees Public Notice that identifies the radio station call signs and their respective fees. Therefore, if a licensee has paid the fee listed in the Media Regulatory Fees Public Notice and it is later determined that the population calculation for the station is incorrect, and a letter verifying the correct population count is provided from the supplier of the population calculation, the Commission will refund the fee amount overpaid. Similarly, if it is determined that the population calculation and related fee for the station has been understated, and the Commission obtains verification of the correct population calculation from the supplier of the population calculation, the Commission will bill the licensee for the difference in fees that should have been paid.

    31. In addition, we will make corrections for such population calculation errors, whether by refunding or billing for corrected fee amounts, only for three (3) fiscal years after the error appears in the Media Regulatory Fees Public Notice. For example, in the case of a population calculation error resulting in an overstated fee amount, if the Media Regulatory Fees Public Notice for FY 2002 contains a population calculation and related fee error and the licensee provides the appropriate verification of the error before September 30, 2005, the Commission will refund the amount overpaid. Similarly, in a case where a population calculation error results in an understated fee amount, if the Fiscal Year 2002 population calculation error is discovered and verified before September 30, 2005, the Commission will bill the licensee for the difference between the correct fee and the fee listed in the Fiscal Year 2002 Media Regulatory Fees Public Notice. We believe that three years provides a reasonable time for a licensee or the Commission to discover and seek to rectify population calculation errors, and that limiting the time for correction of fees will protect both licensees and the Government from being subject to indefinite potential obligations to make corrective payments. We proposed this issue of addressing incorrect population counts for AM and FM radio stations in the Notice of Proposed Rulemaking, but we did not receive any comments or reply comments relating to this particular issue.

    viii. Technical Changes

    32. Regulatory fee payments may be made by Visa, MasterCard, American Express, and Discover credit cards. When paying by credit card, regulatees have two options: (1) Regulatees may submit their payment by using the Commission's FeeFiler (an electronic payment system), or (2) Regulatees may provide the requested credit card information on the FCC Form 159, (Remittance Advice), and mail it to the address described in the Public Notice. Refunds of regulatory fees paid by credit cards are made by check payable to the regulatory fee payor. No refunds are issued to the card processor.

    33. It has come to our attention that we did not make corresponding revisions to certain descriptive portions of sections 1.1152 and 1.1157 of our rules when the regulatory fees for wireless radio services were amended to include standard annual regulatory fees based on payment units for Commercial Mobile Radio Service (CMRS) Mobile and CMRS Messaging. The descriptive portions of sections 1.1152 and 1.1157 of our rules are changed to reflect that it is no longer the case that all regulatory fee payments for wireless radio services are paid in advance when applications are filed.

    34. The Commission incurs transaction costs when processing refunds. The Commission has determined that, in some instances, the transaction costs outweigh the dollar amount of the refund. Therefore, for purposes of more efficient money management, payments in excess of an application or regulatory fee will be refunded only if the overpayment is $10 or more.

    D. Schedule of Regulatory Fees

    35. The Commission's Schedule of Regulatory Fees for FY 2002 is contained in Attachment D of this Report and Order.

    E. Enforcement

    36. As required in 47 U.S.C. 159(c), an additional charge shall be assessed as a penalty for late payment of any regulatory fee. A late payment penalty of 25 percent of the amount of the required regulatory fee will be assessed on the first day following the deadline date for filing of these fees. Failure to pay regulatory fees and/or any late penalty will subject regulatees to sanctions, including the provisions set forth in the Debt Collection Improvement Act of 1996 (“DCIA”). The Commission assesses administrative processing charges on delinquent debts to recover additional costs incurred in Start Printed Page 46303processing and handling the related debt pursuant to the DCIA and section 1.1940(d) of the Commission's Rules. These administrative processing charges will be assessed on any delinquent regulatory fee, in addition to the 25 percent late charge penalty. Partial or underpayment of regulatory fees are treated in the following manner. The licensee will be given credit for the amount paid, but if it is later determined that the fee paid is incorrect or was submitted after the deadline date, the 25 percent late charge penalty will be assessed on the portion that is submitted after the filing window. See 47 CFR 1.1164. Failure to pay regulatory fees can result in the initiation of a proceeding to revoke any and all authorizations held by the delinquent payor. See 47 CFR 1.1164.

    IV. Procedural Matters

    A. Ordering Clause

    37. Accordingly, it is ordered that the rule changes specified herein be adopted. It is further ordered that the rule changes made herein will become effective September 9, 2002, which is no less that 30 days from the date of publication in the Federal Register. A Final Regulatory Flexibility Analysis (FRFA) has been performed and is found in Attachment A, and it is ordered that the Federal Communications Commission's Consumer and Governmental Affairs Bureau, Reference Information Center, send this to Small Business Administration (SBA). Finally, it is ordered that this proceeding is terminated.

    B. Authority and Further Information

    38. Authority for this proceeding is contained in sections 4(i) and (j), 8, 9, and 303(r) of the Communications Act of 1934, as amended.[31] It is ordered that this Report and Order is adopted. It is further ordered that the Commission's Consumer and Governmental Affairs Bureau, Reference Information Center, shall send a copy of this Report and Order, including the Final Regulatory Flexibility Analysis (FRFA), to the Chief Counsel for Advocacy of the Small Business Administration.

    39. Further information about this proceeding may be obtained by contacting the Fees Hotline at (888) 225-5322.

    Start List of Subjects

    List of Subjects in 47 CFR Part 1

    • Administrative practice and procedures
    • Communications common carriers
    • Radio
    • Telecommunications
    • Television
    End List of Subjects Start Signature

    Federal Communications Commission.

    Marlene H. Dortch,

    Secretary.

    End Signature

    Rule Changes

    Start Amendment Part

    Accordingly, part 1 of Title 47 of the Code of Federal Regulations is amended to read as follows:

    End Amendment Part Start Part

    PART 1—PRACTICE AND PROCEDURE

    End Part Start Amendment Part

    1. The authority citation for part 1 continues to read as follows:

    End Amendment Part Start Authority

    Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303(r), 309 and 325(e).

    End Authority Start Amendment Part

    2. Section 1.1110 is amended by revising paragraph (a) introductory text to read as follows:

    End Amendment Part
    Form of payment.

    (a) Fee payments should be in the form of a check, bank draft, on money order denominated in U.S. dollars and drawn on a United States financial institution and made payable to the Federal Communications Commission or by a Visa, MasterCard, American Express, or Discover credit card. No other credit card is acceptable. Fees for applications and other filings paid by credit card will not be accepted unless the credit card section of FCC Form 159 is completed in full. The Commission discourages applicants from submitting cash and will not be responsible for cash sent through the mail. Personal or corporate checks dated more than six months prior to their submission to the Commission's lockbox bank and postdated checks will not be accepted and will be returned as deficient. Third party checks (i.e., checks with a third party as maker or endorser) will not be accepted.

    * * * * *
    Start Amendment Part

    3. Section 1.1113 is amended by revising paragraph (a)(5) Note to read as follows:

    End Amendment Part
    Return or refund of charges.

    (a) * * *

    (5) * * *

    Note—

    Payments in excess of an application fee will be refunded only if the overpayment is $10 or more.

    * * * * *
    Start Amendment Part

    4. Section 1.1152 is revised to read as follows:

    End Amendment Part
    Schedule of annual regulatory fees and filing locations for wireless radio services.
    Exclusive use services (per license)Fee amount 1Address
    1. Land Mobile (Above 470 MHz and 220 MHz Local, Base Station & SMRS) (47 CFR, Part 90):
    (a) New, Renew/Mod (FCC 601 & 159)$5.00FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    (c) Renewal Only (FCC 601 & 159)5.00FCC, P.O. Box 358245, Pittsburgh, PA 15251-5245.
    (d) Renewal Only (Electronic Filing) (FCC 601 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    220 MHz Nationwide
    (a) New, Renew/Mod (FCC 601 & 159)5.00FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    (c) Renewal Only (FCC 601 & 159)5.00FCC, P.O. Box 358245, Pittsburgh, PA 15251-5245.
    (d) Renewal Only (Electronic Filing) (FCC 601 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    2. Microwave (47 CFR Pt. 101) (Private):
    (a) New, Renew/Mod (FCC 601 & 159)10.00FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159)10.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    (c) Renewal Only (FCC 601 & 159)10.00FCC, P.O. Box 358245, Pittsburgh, PA 15251-5245.
    (d) Renewal Only (Electronic Filing) (FCC 601 & 159)10.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    3. 218-219 MHz Service:
    (a) New, Renew/Mod (FCC 601 & 159)25.00FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159)25.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    (c) Renewal Only (FCC 601 & 159)25.00FCC, P.O. Box 358245, Pittsburgh, PA 15251-5245.
    Start Printed Page 46304
    (d) Renewal Only (Electronic Filing) (FCC 601 & 159)25.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    4. Shared Use Services:
    Land Mobile (Frequencies Below 470 MHz—except 220 MHz)
    (a) New, Renew/Mod (FCC 601 & 159)5.00FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) New, Renew/Mod (Electronic Filing) (FCC 601 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    (c) Renewal Only (FCC 601 & 159)5.00FCC, P.O. Box 358245, Pittsburgh, PA 15251-5245.
    (d) Renewal Only (Electronic Filing) (FCC 601 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    General Mobile Radio Service
    (a) New, Renew/Mod (FCC 605 & 159)5.00FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    (c) Renewal Only (FCC 605 & 159)5.00FCC, P.O. Box 358245, Pittsburgh, PA 15251-5245.
    (d) Renewal Only (Electronic Filing) (FCC 605 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    Rural Radio (Part 22)
    (a) New, Additional Facility, Major Renew/Mod (Electronic Filing) (FCC 601 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    (b) Renewal, Minor Renew/Mod (Electronic Filing) (FCC 601 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    Marine Coast
    (a) New Renewal/Mod (FCC 601 & 159)5.00FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) Renewal Only (FCC 601 & 159)5.00FCC, P.O. Box 358245, Pittsburgh, PA 15251-5245.
    (c) Renewal Only (Electronic Filing) (FCC 601 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    Aviation Ground
    (a) New, Renewal/Mod (FCC 601 & 159)10.00FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) Renewal Only (FCC 601 & 159)10.00FCC, P.O. Box 358245, Pittsburgh, PA 15251-5245.
    (c) Renewal Only (Electronic Filing) (FCC 601 & 159)10.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    Marine Ship
    (a) New, Renewal/Mod (FCC 605 & 159)10.00FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) New, Renewal/Mod (Electronic Filing) (FCC 605 & 159)10.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    (c) Renewal Only (FCC 605 & 159)10.00FCC, P.O. Box 358245, Pittsburgh, PA 15251-5245.
    (d) Renewal Only (Electronic Filing) (FCC 605 & 159)10.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    Aviation Aircraft
    (a) New, Renew/Mod (FCC 605 & 159)5.00FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) New, Renew/Mod (Electronic Filing) (FCC 605 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    (c) Renewal Only (FCC 605 & 159)5.00FCC, P.O. Box 358245, Pittsburgh, PA 15251-5245.
    (d) Renewal Only (Electronic Filing) (FCC 605 & 159)5.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    5. Amateur Vanity Call Signs:
    (a) Initial or Renew (FCC 605 & 159)1.45FCC, P.O. Box 358130, Pittsburgh, PA 15251-5130.
    (b) Initial or Renew (Electronic Filing) (FCC 605 & 159)1.45FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
    6. CMRS Mobile Services (per unit) (FCC 159)2 .24FCC, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    7. CMRS Messaging Services (per unit) (FCC 159)3 .08FCC, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    1 Note that “small fees” are collected in advance for the entire license term. Therefore, the annual fee amount shown in this table that is a small fee (categories 1 through 5) must be multiplied by the 5- or 10-year license term, as appropriate, to arrive at the total amount of regulatory fees owed. It should be further noted that application fees may also apply as detailed in § 1.1102 of this chapter.
    2 These are standard fees that are to be paid in accordance with § 1.1157(b) of this chapter.
    3 These are standard fees that are to be paid in accordance with § 1.1157(b) of this chapter.
    Start Amendment Part

    5. Section 1.1153 is revised to read as follows:

    End Amendment Part
    Schedule of annual regulatory fees and filing locations for mass media services.
     Fee amountAddress
    Radio [AM and FM] (47 CFR, Part 73)
    1. AM Class A:
    <=20,000 population 20,001-50,000 population$500 925FCC, Radio, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    50,001-125,000 population1,500
    Start Printed Page 46305
    125,001-400,000 population2,250
    400,001-1,000,000 population3,125
    1,000,000 population4,975
    2. AM Class B:
    <=20,000 population375
    20,001-50,000 population725
    50,001-125,000 population975
    125,001-400,000 population1,575
    400,001-1,000,000 population2,525
    1,000,000 population4,100
    3. AM Class C:
    <=20,000 population275
    20,001-50,000 population375
    50,001-125,000 population525
    125,001-400,000 population800
    400,001-1,000,000 population1,425
    1,000,000 population2,075
    4. AM Class D:
    <=20,000 population325
    20,001-50,000 population525
    50,001-125,000 population775
    125,001-400,000 population950
    400,001-1,000,000 population1,700
    1,000,000 population2,625
    5. AM Construction Permit370
    6. FM Classes A, B1 and C3:
    <=20,000 population375
    20,001-50,000 population725
    50,001-125,000 population975
    125,001-400,000 population1,575
    400,001-1,000,000 population2,525
    ?1,000,000 population4,100
    7. FM Classes B, C, C1 and C2:
    <=20,000 population500
    20,001-50,000 population925
    50,001-125,000 population1,500
    125,001-400,000 population2,250
    400,001-1,000,000 population3,125
    ?1,000,000 population4,975
    8. FM Construction Permits1,500
    TV (47 CFR, Part 73) VHF Commercial
    1. Markets 1 thru 10 2. Markets 11 thru 2547,050 34,700FCC, TV Branch, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    3. Markets 26 thru 5023,625
    4. Markets 51 thru 10015,150
    5. Remaining Markets3,525
    6. Construction Permits2,750
    UHF Commercial
    1. Markets 1 thru 10 2. Markets 11 thru 2512,800 10,300FCC, UHF Commercial, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    3. Markets 26 thru 506,600
    4. Markets 51 thru 1003,875
    5. Remaining Markets1,075
    6. Construction Permits5,175
    Satellite UHF/VHF Commercial
    1. All Markets 2. Construction Permits805 420FCC Satellite TV, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    Low Power TV, TV/FM Translator, & TV/FM Booster (47 CFR Part 74)320FCC, Low Power, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    Broadcast Auxiliary10FCC, Auxiliary, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    Multipoint Distribution (Includes MMDS, MDS, & LMDS)430FCC, Multipoint, P.O. Box 358835, Pittsburgh, PA 15251-5835
    Start Amendment Part

    6. Section 1.1154 is revised to read as follows:

    End Amendment Part
    Schedule of annual regulatory charges and filing locations for common carrier services.Start Printed Page 46306
     Fee amountAddress
    Radio Facilities
    1. Microwave (Domestic Public Fixed) (Electronic Filing) (FCC Form 601 & 159)$10.00FCC, P.O. Box 358994, Pittsburgh, PA 15251-5994.
     Fee amountAddress
    Carriers
    1. Interstate Telephone Service Providers (per interstate and international end-user revenues (see FCC Form 499-A).00153FCC, Carriers, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    Start Amendment Part

    7. Section 1.1155 is revised to read as follows:

    End Amendment Part
    Schedule of regulatory fees and filing locations for cable television services.
     Fee amountAddress
    1. Cable Television Relay Service 2. Cable TV System$65 .53FCC, Cable, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    Start Amendment Part

    8. Section 1.1156 is revised to read as follows:

    End Amendment Part
    Schedule of regulatory fees and filing locations for international services.
     Fee amountAddress
    Radio Facilities
    1. International (HF) Broadcast$495FCC, International, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    2. International Public Fixed1,400FCC, International, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    Space Stations (Geostationary Orbit)99,700FCC, Space Stations, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    Space Stations (Non-Geostationary Orbit)103,200FCC, Space Stations, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    Earth Stations
    Transmit/Receive & Transmit Only (per authorization or registration)$140FCC, Earth Station, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    Carriers
    1. International Bearer Circuits (per active 64KB circuit or equivalent)$2.00FCC, International, P.O. Box 358835, Pittsburgh, PA 15251-5835.
    * * * * *
    Start Amendment Part

    9. Section 1.1157 is amended by revising paragraphs (a) and (b) to read as follows:

    End Amendment Part
    Payment of charges for regulatory fees.
    * * * * *

    (a) (1) The amount of the regulatory fee payment that is due with any application for authorization shall be the multiple of the number of years in the entire term of the requested license or other authorization multiplied by the annual fee payment required in the Schedule of Regulatory Fees, effective at the time the application is filed. Except as set forth in § 1.1160, advance payments shall be final and shall not be readjusted during the term of the license or authorization, notwithstanding any subsequent increase or decrease in the annual amount of a fee required under the Schedule of Regulatory Fees.

    (2) Failure to file the appropriate regulatory fee due with an application for authorization will result in the return of the accompanying application, including an application for which the Commission has assigned a specific filing deadline.

    (b)(1) Payments of standard regulatory fees applicable to certain wireless radio, mass media, common carrier, cable and international services shall be filed in full on an annual basis at a time announced by the Commission or the Managing Director, pursuant to delegated authority, and published in the Federal Register.

    (2) Large regulatory fees, as annually defined by the Commission, may be submitted in installment payments or in a single payment on a date certain as announced by the Commission or the Managing Director, pursuant to delegated authority, and published in the Federal Register.

    * * * * *
    Start Amendment Part

    10. Section 1.1158 is amended by revising the section heading and introductory paragraph to read as follows:

    End Amendment Part
    Start Printed Page 46307
    Form of payment for regulatory fees.

    Any regulatory fee payment must be submitted in the form of a check, bank draft or money order denominated in U.S. dollars and drawn on a United States financial institution and made payable to the Federal Communications Commission or by Visa, Mastercard, American Express or Discover credit cards only. The Commission discourages applicants from submitting cash payments and will not be responsible for cash sent through the mail. Personal or corporate checks dated more than six months prior to their submission to the Commission's lockbox bank and postdated checks will not be accepted and will be returned as deficient.

    Start Amendment Part

    11. Section 1.1160 is amended by revising paragraph (a)(1) to read as follows:

    End Amendment Part
    Refunds of regulatory fees.

    (a) * * *

    (1) When no regulatory fee is required or an excessive fee has been paid. In the case of an overpayment, the refund amount will be based on the applicants', permittees', or licensees' entire submission. All refunds will be issued to the payor named in the appropriate block of the FCC Form 159. Payments in excess of a regulatory fee will be refunded only if the overpayment is $10.00 or more.

    * * * * *

    Note:

    The following attachments will not appear in the Code of Federal Regulations.

    Attachment A—Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),[32] -[35] an Initial Regulatory Flexibility Analysis (IRFA) of the possible significant economic impact on small entities was incorporated in the Notice of Proposed Rulemaking, In the Matter of Assessment and Collection of Regulatory Fees for Fiscal Year 2002.[36] The Commission sought written public comments on the proposals in its FY 2002 regulatory fees NPRM, including comments on the IRFA. This present Final Regulatory Flexibility Analysis (FRFA) conforms to the RFA.[37]

    I. Need for, and Objectives of, the Proposed Rules

    2. This rulemaking proceeding is initiated to amend the Schedule of Regulatory Fees in the amount of $218,757,000, the amount that Congress has required the Commission to recover. The Commission seeks to collect the necessary amount through its revised fees, as contained in the attached Schedule of Regulatory Fees, in the most efficient manner possible and without undue burden on the public.

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

    3. None.

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

    4. The RFA directs agencies to provide a description of and, where feasible, an estimate of the number of small entities that may be affected by the proposed rules, if adopted.[38] The RFA defines the term “small entity” as having the same meaning as the terms “small business,” “small organization,” and “small governmental jurisdiction.” [39] In addition, the term “small business” has the same meaning as the term “small business concern” under the Small Business Act.[40] 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 Small Business Administration (SBA).[41] A small organization is generally “any not-for-profit enterprise which is independently owned and operated and is not dominant in its field.” [42] Nationwide, as of 1992, there were approximately 275,801 small organizations.[43] “Small governmental jurisdiction”[44] generally means “governments of cities, counties, towns, townships, villages, school districts, or special districts, with a population of less than 50,000.” [45] As of 1992, there were approximately 85,006 governmental entities in the United States.[46] This number includes 38,978 counties, cities, and towns; of these, 37,566, or 96%, have populations of fewer than 50,000.[47] The Census Bureau estimates that this ratio is approximately accurate for all governmental entities. Thus, of the 85,006 governmental entities, we estimate that 81,600 (96%) are small entities. Below, we further describe and estimate the number of small entity licensees and regulatees that may be affected by these rules.

    Cable Services or Systems

    5. The SBA has developed a definition of small entities for cable and other pay television services, which includes all such companies generating $11 million or less in revenue annually.[48] This definition includes cable systems operators, closed circuit television services, direct broadcast satellite services, multipoint distribution systems, satellite master antenna systems and subscription television services. According to the Census Bureau data from 1992, there were 1,788 total cable and other pay television services and 1,423 had less than $11 million in revenue.[49]

    6. The Commission has developed its own definition of a small cable system operator for purposes of rate regulation. Under the Commission's rules, a “small cable company” is one serving fewer than 400,000 subscribers nationwide.[50] Based on our most recent information, we estimate that there were 1,439 cable operators that qualified as small cable system operators at the end of 1995.[51] Since then, some of those companies may have grown to serve over 400,000 subscribers, and others may have been involved in transactions that caused them to be combined with other cable operators. Consequently, we estimate that there are fewer than 1,439 small entity cable system operators.

    7. The Communications Act of 1934, as amended, also contains a definition of a small cable system operator, 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.” [52] The Commission has determined that there are 68,980,000 subscribers in the United States.[53] Therefore, we estimate that an operator serving fewer than 689,800 subscribers shall be deemed a small operator, if its annual revenues, when combined with the total annual revenues of all of its affiliates, do not exceed $250 million in the aggregate.[54] Based Start Printed Page 46308on available data, we estimate that the number of cable operators serving 689,800 subscribers or less totals 1,450.[55] We do not request nor collect information on whether cable system operators are affiliated with entities whose gross annual revenues exceed $250,000,000,[56] and therefore are unable at this time to estimate more accurately the number of cable system operators that would qualify as small cable operators under the definition in the Communications Act.

    8. Other Pay Services. Other pay television services are also classified under the North American Industry Classification System (NAICS) codes 51321 and 51322, which includes cable systems operators, closed circuit television services, direct broadcast satellite services (DBS),[57] multipoint distribution systems (MDS),[58] satellite master antenna systems (SMATV), and subscription television services.

    Wireline Competition Services and Related Entities

    9. The most reliable source of information regarding the total numbers of certain common carrier and related providers nationwide appears to be data the Commission publishes annually in its Telecommunications Provider Locator report, which encompasses data compiled from FCC Form 499-A Telecommunications Reporting Worksheets.[59] According to data in the most recent report, there are 5,679 interstate service providers.[60] These providers include, inter alia, incumbent local exchange carriers, competitive access providers (CAPS)/competitive local exchange carriers (CLECs), local resellers and other local exchange carriers, interexchange carriers, operator service providers, prepaid calling card providers, toll resellers, and other toll carriers.

    10. We have included small incumbent local exchange carriers (LECs) [61] in this present RFA analysis. As noted above, a “small business” under the RFA is one that, inter alia, meets the pertinent small business size standard (e.g., a telephone communications business having 1,500 or fewer employees), and “is not dominant in its field of operation.” [62] The SBA's Office of Advocacy contends that, for RFA purposes, small incumbent LECs are not dominant in their field of operation because any such dominance is not “national” in scope.[63] We have therefore included small incumbent LECs in this FRFA analysis, although we emphasize that this FRFA action has no effect on Commission analyses and determinations in other, non-RFA contexts.

    11. Total Number of Telephone Companies Affected. The Census Bureau reports that, at the end of 1992, there were 3,497 firms engaged in providing telephone services, as defined therein, for at least one year.[64] This number contains a variety of different categories of carriers, including local exchange carriers, interexchange carriers, competitive access providers, operator service providers, pay telephone operators, and resellers. It seems certain that some of these 3,497 telephone service firms may not qualify as small entities or small incumbent LECs because they are not “independently owned and operated.”[65] It seems reasonable to conclude that fewer than 3,497 telephone service firms are small entity telephone service firms or small incumbent LECs that may be affected by these revised rules.

    12. Wireline Carriers and Service Providers. The SBA has developed a definition of small entities for telephone communications companies other than radiotelephone (wireless) companies. The Census Bureau reports that there were 2,321 such telephone companies in operation for at least one year at the end of 1992.[66] According to the SBA's definition, a small business telephone company other than a radiotelephone (wireless) company is one employing no more than 1,500 persons.[67] All but 26 of the 2,321 non-radiotelephone (wireless) companies listed by the Census Bureau were reported to have fewer than 1,000 employees. Even if all 26 of the remaining companies had more than 1,500 employees, there would still be 2,295 non-radiotelephone (wireless) companies that might qualify as small entities or small incumbent LECs. Although it seems certain that some of these carriers are not independently owned and operated, we are unable at this time to estimate with greater precision the number of wireline carriers and service providers that would qualify as small business concerns under SBA's definition. Therefore, we estimate that fewer than 2,295 small telephone communications companies other than radiotelephone (wireless) companies are small entities or small incumbent LECs that may be affected by these revised rules.

    13. Local Exchange Carriers (LECS), Competitive Access Providers (CAPs), Interexchange Carriers (IXCs), Operator Service Providers (OSPs), Payphone Providers, and Resellers. Neither the Commission nor the SBA has developed a definition for small LECs, competitive access providers (CAPs), interexchange carriers (IXCs), operator service providers (OSPs), payphone providers, or resellers. The closest applicable definition for these carrier-types under SBA rules is for telephone communications companies other than radiotelephone (wireless) companies.[68] The most reliable source of information that we know regarding the number of these carriers nationwide appears to be the data that we collect annually in connection with the FCC 499-A Telecommunications Reporting Worksheets.[69] According to our most recent data, there are 1,329 incumbent and other LECs, 532 CAPs and competitive local exchange carriers (CLECs), 229 IXCs, 22 OSPs, 936 payphone providers, 32 prepaid calling card providers, 38 other toll carriers, and 710 local and toll resellers.[70] Although it seems certain that some of these carriers are not independently owned and operated, or have more than 1,500 employees, we are unable at this time to estimate with greater precision the number of these carriers that would qualify as small business concerns under the SBA's definition. Therefore, we estimate that there are fewer than 1,329 small entity incumbent and other LECs, 532 CAPs/CLECs, 229 IXCs, 22 OSPs, 936 payphone providers, and 710 local and toll resellers, 32 prepaid calling card providers, and 38 other toll carriers that may be affected by the revised rules.

    International Services

    14. The Commission has not developed a definition of small entities applicable to licensees in the international services. Therefore, the applicable definition of small entity is generally the definition under the SBA rules applicable to Communications Services, Not Elsewhere Classified (NEC).[71] This definition provides that a small entity is expressed as one with $11.0 million or less in annual receipts.[72] According to the Census Bureau, there were a total of 848 communications services providers, NEC, in operation in 1992, and a total of 775 had annual receipts of less than $10.0 million.[73] Start Printed Page 46309The Census report does not provide more precise data.

    15. International Broadcast Stations. Commission records show that there are approximately 19 international high frequency broadcast station authorizations. We do not request nor collect annual revenue information, and are unable to estimate the number of international high frequency broadcast stations that would constitute a small business under the SBA definition. However, the Commission estimates that only six international high frequency broadcast stations are subject to regulatory fee payments.

    16. International Public Fixed Radio (Public and Control Stations). There is one licensee in this service subject to payment of regulatory fees, and the licensee does not constitute a small business under the SBA definition.

    17. Fixed Satellite Transmit/Receive Earth Stations. There are approximately 4,303 earth station authorizations, a portion of which are Fixed Satellite Transmit/Receive Earth Stations. We do not request nor collect annual revenue information, and are unable to estimate the number of the earth stations that would constitute a small business under the SBA definition.

    18. Fixed Satellite Small Transmit/Receive Earth Stations. There are approximately 4,303 earth station authorizations, a portion of which are Fixed Satellite Small Transmit/Receive Earth Stations. We do not request nor collect annual revenue information, and are unable to estimate the number of fixed small satellite transmit/receive earth stations that would constitute a small business under the SBA definition.

    19. Fixed Satellite Very Small Aperture Terminal (VSAT) Systems. These stations operate on a primary basis, and frequency coordination with terrestrial microwave systems is not required. Thus, a single “blanket” application may be filed for a specified number of small antennas and one or more hub stations. There are 485 current VSAT System authorizations. We do not request nor collect annual revenue information, and are unable to estimate the number of VSAT systems that would constitute a small business under the SBA definition.

    20. Mobile Satellite Earth Stations. There are 21 licensees. We do not request nor collect annual revenue information, and are unable to estimate the number of mobile satellite earth stations that would constitute a small business under the SBA definition.

    21. Radio Determination Satellite Earth Stations. There are four licensees. We do not request nor collect annual revenue information, and are unable to estimate the number of radio determination satellite earth stations that would constitute a small business under the SBA definition.

    22. Space Stations (Geostationary). There are presently an estimated 71 Geostationary Space Station authorizations. We do not request nor collect annual revenue information, and are unable to estimate the number of geostationary space stations that would constitute a small business under the SBA definition.

    23. Space Stations (Non-Geostationary). There are presently six Non-Geostationary Space Station authorizations. We do not request nor collect annual revenue information, and are unable to estimate the number of non-geostationary space stations that would constitute a small business under the SBA definition.

    24. Direct Broadcast Satellites. Because DBS provides subscription services, DBS falls within the SBA-recognized definition of “Cable and Other Pay Television Services.” [74] This definition provides that a small entity is one with $11.0 million or less in annual receipts.[75] Currently, there are nine DBS authorizations, though there are only two DBS companies in operation at this time. We do not request nor collect annual revenue information for DBS services, and are unable to determine the number of DBS operators that would constitute a small business under the SBA definition.

    Media Services

    25. Commercial Radio and Television Services. The proposed rules and policies will apply to television broadcasting licensees and radio broadcasting licensees.[76] The SBA defines a television broadcasting station that has $10.5 million or less in annual receipts as a small business.[77] Television broadcasting stations consist of establishments primarily engaged in broadcasting visual programs by television to the public, except cable and other pay television services.[78] Included in this industry are commercial, religious, educational, and other television stations.[79] Also included are establishments primarily engaged in television broadcasting and which produce taped television program materials.[80] Separate establishments primarily engaged in producing taped television program materials are classified under another NAICS number.[81] There were 1,509 television stations operating in the nation in 1992.[82] That number has remained fairly constant as indicated by the approximately 1,686 operating television broadcasting stations in the nation as of September 30, 2001.[83] For 1992,[84] the number of television stations that produced less than $10.0 million in revenue was 1,155 establishments.[85] Only commercial stations are subject to regulatory fees.

    26. Additionally, the SBA defines a radio broadcasting station that has $5 million or less in annual receipts as a small business.[86] A radio broadcasting station is an establishment primarily engaged in broadcasting aural programs by radio to the public.[87] Included in this industry are commercial, religious, educational, and other radio stations.[88] Radio broadcasting stations, which primarily are engaged in radio broadcasting and which produce radio program materials, are similarly included.[89] However, radio stations which are separate establishments and are primarily engaged in producing radio program material are classified under another NAICS number.[90] The 1992 Census indicates that 96 percent (5,861 of 6,127) of radio station establishments produced less than $5 million in revenue in 1992.[91] Official Commission records indicate that at total of 11,334 individual radio stations were operating in Start Printed Page 463101992.[92] As of September 30, 2001, Commission records indicate that a total of 13,012 radio stations were operating, of which 8,285 were FM stations.[93] Only commercial stations are subject to regulatory fees.

    27. The rules may affect an estimated total of 1,230 television stations, approximately 1,281 of which are considered small businesses.[94] The revised rules will also affect an estimated total of 10,819 radio stations, approximately 12,209 of which are small businesses.[95] These estimates may overstate the number of small entities because the revenue figures on which they are based do not include or aggregate revenues from non-television or non-radio affiliated companies. There are also 2,256 low power television stations (LPTV).[96] Given the nature of this service, we will presume that all LPTV licensees qualify as small entities under the SBA definition.

    28. Auxiliary, Special Broadcast and Other Program Distribution Services. This service involves a variety of transmitters, generally used to relay broadcast programming to the public (through translator and booster stations) or within the program distribution chain (from a remote news gathering unit back to the station). The Commission has not developed a definition of small entities applicable to broadcast auxiliary licensees. The applicable definitions of small entities are those, noted previously, under the SBA rules applicable to radio broadcasting stations and television broadcasting stations.[97]

    29. The Commission estimates that there are approximately 3,600 translators and boosters. The Commission does not collect financial information on any broadcast facility, and the Department of Commerce does not collect financial information on these auxiliary broadcast facilities. We believe that most, if not all, of these auxiliary facilities could be classified as small businesses by themselves. We also recognize that most commercial translators and boosters are owned by a parent station which, in some cases, would be covered by the revenue definition of small business entity discussed above. These stations would likely have annual revenues that exceed the SBA maximum to be designated as a small business (either $5 million for a radio station or $10.5 million for a TV station). Furthermore, they do not meet the Small Business Act's definition of a “small business concern” because they are not independently owned and operated.[98]

    30. Multipoint Distribution Service (MDS). This service has historically provided primarily point-to-multipoint and one-way video services to subscribers.[99] The Commission recently amended its rules to allow MDS licensees to provide a wide range of high-speed, two-way services to a variety of users.[100] In connection with the 1996 MDS auction, the Commission defined small businesses as entities that had annual average gross revenues for the three preceding years not in excess of $40 million.[101] The Commission established this small business definition in the context of this particular service and with the approval of the SBA.[102] The MDS auction resulted in 67 successful bidders obtaining licensing opportunities for 493 Basic Trading Areas (BTAs).[103] Of the 67 auction winners, 61 met the definition of a small business. At this time, we estimate that of the 61 small business MDS auction winners, 48 remain small business licensees. In addition to the 48 small businesses that hold BTA authorizations, there are approximately 392 incumbent MDS licensees that are considered small entities.[104] After adding the number of small business auction licensees to the number of incumbent licensees not already counted, we find that there are currently approximately 440 MDS licensees that are defined as small businesses under either the SBA or the Commission's rules. Some of those 440 small business licensees may be affected by these revised rules.

    Wireless and Commercial Mobile Services

    31. Cellular Licensees. Neither the Commission nor the SBA has developed a definition of small entities specific to cellular licensees. Therefore, the applicable definition of small entity is the definition under the SBA rules applicable to radiotelephone (wireless) companies. This provides that a small entity is a radiotelephone (wireless) company employing no more than 1,500 persons.[105] According to the Census Bureau, only twelve radiotelephone (wireless) firms from a total of 1,178 such firms which operated during 1992 had 1,000 or more employees.[106] Even if all twelve of these firms were cellular telephone companies, nearly all cellular carriers were small businesses under the SBA's definition. In addition, we note that there are 1,758 cellular licenses; however, a cellular licensee may own several licenses. According to the November 2001 Telecommunications Provider Locater, 858 wireless telephony providers reported that they were engaged in the provision of either cellular service, Personal Communications Service (PCS) services, and SMR telephony carriers, which are placed together in the data.[107] We do not have data specifying the number of these carriers that are not independently owned and operated or have more than 1,500 employees, and are unable at this time to estimate with greater precision the number of cellular service carriers that would qualify as small business concerns under the SBA's definition. We estimate that there are fewer than 858 small wireless service providers that may be affected by these revised rules.

    32. 220 MHz Radio Service—Phase I Licensees. The 220 MHz service has both Phase I and Phase II licenses. Phase I licensing was conducted by lotteries in 1992 and 1993. There are approximately 1,515 such non-nationwide licensees and four nationwide licensees currently authorized to operate in the 220 MHz band. The Commission has not developed a definition of small entities specifically applicable to such incumbent 220 MHz Phase I licensees. To estimate the number of such licensees that are small businesses, we apply the definition under the SBA rules applicable to Radiotelephone (wireless) Communications companies. This definition provides that a small entity is a radiotelephone (wireless) company employing no more than 1,500 persons.[108] According to the Census Bureau, only 12 radiotelephone (wireless) firms out of a total of 1,178 such firms which operated during 1992 had 1,000 or more employees.[109] If this general ratio continues in 2001 in the context of Phase I 220 MHz licensees, we estimate that nearly all such licensees are small businesses under the SBA's definition.

    33. 220 MHz Radio Service—Phase II Licensees. The Phase II 220 MHz service is a new service, and is subject to spectrum auctions. In the 220 MHz Third Report and Order, 62 FR 16004, April 3, 1997, we adopted criteria for defining small and very Start Printed Page 46311small businesses for purposes of determining their eligibility for special provisions such as bidding credits and installment payments.[110] We have defined a small business as an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $15 million for the preceding three years. A very small business is defined as an entity that, together with its affiliates and controlling principals, has average gross revenues that do not exceed $3 million for the preceding three years.[111] The SBA has approved these definitions.[112] Auctions of Phase II licenses commenced on September 15, 1998, and closed on October 22, 1998.[113] In the first auction, 908 licenses were auctioned in three different-sized geographic areas: three nationwide licenses, 30 Regional Economic Area Group (EAG) Licenses, and 875 Economic Area (EA) Licenses. Of the 908 licenses auctioned, 693 were sold.[114] Thirty-nine small businesses won licenses in the first 220 MHz auction. The second auction included 225 licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies claiming small business status won 158 licenses.[115]

    34. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order, we adopted criteria for defining small businesses and very small businesses for purposes of determining their eligibility for special provisions such as bidding credits and installment payments.[116] We have defined a small business as an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $15 million for the preceding three years. Additionally, a very small business is defined as an entity that, together with its affiliates and controlling principals, has average gross revenues that are not more than $3 million for the preceding three years. An auction of 52 Major Economic Area (MEA) licenses commenced on September 6, 2000, and closed on September 21, 2000.[117] Of the 104 licenses auctioned, 96 licenses were sold to 9 bidders. Five of these bidders were small businesses that won a total of 26 licenses. A second auction of 700 MHz Guard Band licenses commenced on February 13, 2001 and closed on February 21, 2001. All eight of the licenses auctioned were sold to three bidders. One of these bidders was a small business that won a total of two licenses.[118]

    35. Private and Common Carrier Paging. In the Paging Third Report and Order, we adopted criteria for defining small businesses and very small businesses for purposes of determining their eligibility for special provisions such as bidding credits and installment payments.[119] We have defined a small business as an entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding $15 million for the preceding three years. Additionally, a very small business is defined as an entity that, together with its affiliates and controlling principals, has average gross revenues that are not more than $3 million for the preceding three years.[120] The SBA has approved these definitions.[121] An auction of Metropolitan Economic Area licenses commenced on February 24, 2000, and closed on March 2, 2000.[122] Of the 985 licenses auctioned, 440 were sold. Fifty-seven companies claiming small business status won. At present, there are approximately 24,000 Private-Paging site-specific licenses and 74,000 Common Carrier Paging licenses. According to the most recent data in the Telecommunications Provider Locator, 608 carriers reported that they were engaged in the provision of either paging or “other mobile” services, which are placed together in the data.[123] We do not have data specifying the number of these carriers that are not independently owned and operated or have more than 1,500 employees, and therefore are unable at this time to estimate with greater precision the number of paging carriers that would qualify as small business concerns under the SBA's definition. Consequently, we estimate that there are fewer than 608 small paging carriers that may be affected by these revised rules. We estimate that the majority of private and common carrier paging providers would qualify as small entities under the SBA definition.

    36. Broadband Personal Communications Service (PCS). The broadband PCS spectrum is divided into six frequencies designated A through F, and the Commission has held auctions for each block. The Commission defined “small entity” for Blocks C and F as an entity that has average gross revenues of less than $40 million in the three previous calendar years.[124] For Block F, an additional classification for “very small business” was added and is defined as an entity that, together with its affiliates, has average gross revenues of not more than $15 million for the preceding three calendar years.[125] These regulations defining “small entity” in the context of broadband PCS auctions have been approved by the SBA.[126] No small businesses within the SBA-approved definition bid successfully for licenses in Blocks A and B. There were 90 winning bidders that qualified as small entities in the Block C auctions. A total of 93 small and very small business bidders won approximately 40% of the 1,479 licenses for Blocks D, E, and F.[127] On March 23, 1999, the Commission re-auctioned 347 C, D, E, and F Block licenses; there were 48 small business winning bidders. An additional classification for “very small business” was added for C Block and is defined as “an entity that together with its affiliates and persons or entities that hold interest in such entity and their affiliates, has average annual gross revenues that are not more than forty million dollars for the proceding three years.[128] The SBA approved this definition.” [129] Based on this information, we conclude that the number of small broadband PCS licensees will include the 90 winning C Block bidders and the 93 qualifying bidders in the D, E, and F blocks, plus the 48 winning bidders in the re-auction, for a total of 231 small entity PCS providers as defined by the SBA and the Commission's auction rules. On January 26, 2001, the Commission completed the auction of 422 C and F Broadband PCS licenses in Auction No. 35. Of the 35 winning bidders in this auction, 29 qualified as small or very small businesses.

    37. Narrowband PCS. To date, two auctions of narrowband PCs licenses have been conducted. Through these auctions, the Commission has awarded a total of 41 licenses, out of which 11 were obtained by small businesses. For purposes of the two auctions that have already been held, small businesses were defined as entities with average gross revenues for the prior three calendar years of $40 million or less. To ensure meaningful participation of small business entities in the auctions, the Start Printed Page 46312Commission adopted a two-tiered definition of small businesses in the Narrowband PCS Second Report and Order. [130] A small business is an entity that, together with affiliates and controlling interests, has average gross revenues for the three preceding years of not more than $40 million. A very small business is an entity that, together with affiliates and controlling interests, has average gross revenues for the three preceding years of not more than $15 million. These definitions have been approved by the SBA. [131] In the future, the Commission will auction 459 licenses to serve Metropolitan Trading Areas (MTAs) and 408 response channel licenses. There is also one megahertz of narrowband PCS spectrum that has been held in reserve and that the Commission has not yet decided to release for licensing. The Commission cannot predict accurately the number of licenses that will be awarded to small entities in future auctions.

    However, four of the 16 winning bidders in the two previous narrowband PCS auctions were small businesses, as that term was defined under the Commission's Rules. The Commission assumes, for purposes of this IRFA, that a large portion of the remaining narrowband PCS licenses will be awarded to small entities. The Commission also assumes that at least some small businesses will acquire narrowband PCS licenses by means of the Commission's partitioning and disaggregation rules.

    38. Rural Radiotelephone Service. The Commission has not adopted a definition of small entity specific to the Rural Radiotelephone Service. [132] A significant subset of the Rural Radiotelephone Service is the Basic Exchange Telephone Radio Systems (BETRS). [133] We will use the SBA's definition applicable to radiotelephone (wireless) companies, i.e., an entity employing no more than 1,500 persons. [134] There are approximately 1,000 licensees in the Rural Radiotelephone Service, and we estimate that almost all of them qualify as small entities under the SBA's definition.

    39. Air-Ground Radiotelephone Service. The Commission has not adopted a definition of small entity specific to the Air-Ground Radiotelephone Service. [135] We will use the SBA's definition applicable to radiotelephone (wireless) companies, i.e., an entity employing no more than 1,500 persons. [136] There are approximately 100 licensees in the Air-Ground Radiotelephone Service, and we estimate that almost all of them qualify as small under the SBA definition.

    40. Specialized Mobile Radio (SMR). Pursuant to 47 CFR 90.814(b)(1), the Commission has defined “small business” for purposes of auctioning 900 MHz SMR licenses, 800 MHz SMR licenses for the upper 200 channels, and 800 MHz SMR licenses for the lower 230 channels on the 800 MHz band, as a firm that has had average annual gross revenues of $15 million or less in the three preceding calendar years. [137] The SBA has approved this small business size standard for the 800 MHz and 900 MHz auctions. [138] Sixty winning bidders for geographic area licenses in the 900 MHz SMR band qualified as small business under the $15 million size standard. The auction of the 525 800 MHz SMR geographic area licenses for the upper 200 channels began on October 28, 1997, and was completed on December 8, 1997. [139] Ten winning bidders for geographic area licenses for the upper 200 channels in the 800 MHz SMR band qualified as small businesses under the $15 million size standard. [140] An auction of 800 MHz SMR geographic area licenses for the General Category channels began on August 16, 2000 and was completed on September 1, 2000. Of the 1,050 licenses offered in that auction, 1,030 licenses were sold. Eleven winning bidders for licenses for the General Category channels in the 800 MHz SMR band qualified as small business under the $15 million size standard. In an auction completed on December 5, 2000, a total of 2,800 Economic Area licenses in the lower 80 channels of the 800 MHz SMR service were sold. Of the 22 winning bidders, 19 claimed small business status. Thus, 40 winning bidders for geographic licenses in the 800 MHz SMR band qualified as small businesses. In addition, there are numerous incumbent site-by-site SMR licenses on the 800 and 900 MHz band.

    41. These revised fees in the Report and Order apply to SMR providers in the 800 MHz and 900 MHz bands that either hold geographic area licenses or have obtained extended implementation authorizations. We do not know how many firms provide 800 MHz or 900 MHz geographic area SMR service pursuant to extended implementation authorizations, nor how many of these providers have annual revenues of no more than $15 million. One firm has over $15 million in revenues. We assume, for purposes of this FRFA, that all of the remaining existing extended implementation authorizations are held by small entities, as that term is defined by the SBA.

    42. Private Land Mobile Radio (PLMR). PLMR systems serve an essential role in a range of industrial, business, land transportation, and public safety activities. These radios are used by companies of all sizes operating in all U.S. business categories. The Commission has not developed a definition of small entity specifically applicable to PLMR licensees due to the vast array of PLMR users. For the purpose of determining whether a licensee is a small business as defined by the SBA, each licensee would need to be evaluated within its own business area.

    43. The Commission is unable at this time to estimate the number of small businesses which could be impacted by the rules. The Commission's 1994 Annual Report on PLMRs [141] indicates that at the end of fiscal year 1994 there were 1,087,267 licensees operating 12,481,989 transmitters in the PLMR bands below 512 MHz. Because any entity engaged in a commercial activity is eligible to hold a PLMR license, the revised rules in this context could potentially impact every small business in the United States.

    44. Amateur Radio Service. We estimate that 8,000 applicants will apply for vanity call signs in FY 2001. These licensees are presumed to be individuals, and therefore not small entities. All other amateur licensees are exempt from payment of regulatory fees.

    45. Aviation and Marine Radio Service. Small businesses in the aviation and marine radio services use a marine very high frequency (VHF) radio, any type of emergency position indicating radio beacon (EPIRB) and/or radar, a VHF aircraft radio, and/or any type of emergency locator transmitter (ELT). The Commission has not developed a definition of small entities specifically applicable to these small businesses. The applicable definition of small entity is the definition under the SBA rules for radiotelephone (wireless) communications. [142]

    46. Most applicants for recreational licenses are individuals. Approximately 581,000 ship station licensees and 131,000 aircraft station licensees operate domestically and are not subject to the radio carriage requirements of any statute or treaty. For purposes of our evaluations and conclusions in this FRFA, we estimate that there may be at least 712,000 potential licensees which are individuals or are small entities, as that term is defined by the SBA. We estimate that only 16,800 will be subject to FY 2001 regulatory fees.

    47. Fixed Microwave Services. Microwave services include common carrier, [143] private-operational fixed, [144] and broadcast auxiliary radio services. [145] At present, there are Start Printed Page 46313approximately 22,015 common carrier fixed licensees and 61,670 private operational-fixed licensees and broadcast auxiliary radio licensees in the microwave services. The Commission has not yet defined a small business with respect to microwave services. For purposes of this FRFA, we will use the SBA's definition applicable to radiotelephone (wireless) companies—i.e., an entity with no more than 1,500 persons. [146] We estimate that all of the Fixed Microwave licensees (excluding broadcast auxiliary licensees) would qualify as small entities under the SBA definition for radiotelephone (wireless) companies.

    48. Public Safety Radio Services. Public Safety radio services include police, fire, local government, forestry conservation, highway maintenance, and emergency medical services. [147] There are a total of approximately 127,540 licensees within these services. Governmental entities [148] as well as private businesses comprise the licensees for these services. As indicated supra in paragraph four of this FRFA, all governmental entities with populations of less than 50,000 fall within the definition of a small entity. [149] All licensees in this category are exempt from the payment of regulatory fees.

    49. Personal Radio Services. Personal radio services provide short-range, low power radio for personal communications, radio signaling, and business communications not provided for in other services. The services include the citizen's band (CB) radio service, general mobile radio service (GMRS), radio control radio service, and family radio service (FRS). [150] Since the CB, GMRS, and FRS licensees are individuals, no small business definition applies for these services. We are unable at this time to estimate the number of other licensees that would qualify as small under the SBA's definition; however, only GMRS licensees are subject to regulatory fees.

    50. Offshore Radiotelephone Service. This service operates on several UHF TV broadcast channels that are not used for TV broadcasting in the coastal areas of states bordering the Gulf of Mexico. [151] There are presently approximately 55 licensees in this service. We are unable to estimate at this time the number of licensees that would qualify as small under the SBA's definition for radiotelephone (wireless) communications.

    51. Wireless Communications Services. This service can be used for fixed, mobile, radiolocation and digital audio broadcasting satellite uses. The Commission defined “small business” for the wireless communications services (WCS) auction as an entity with average gross revenues of $40 million for each of the three preceding years, and a “very small business” as an entity with average gross revenues of $15 million for each of the three preceding years. The SBA has approved these definitions. [152] The FCC auctioned geographic area licenses in the WCS service. In the auction, there were seven winning bidders that qualified as very small business entities, and one that qualified as a small business entity. We conclude that the number of geographic area WCS licensees affected includes these eight entities.

    52. 39 GHz Service. The Commission defined “small entity” for 39 GHz licenses as an entity that has average gross revenues of less than $40 million in the three previous calendar years. [153] An additional classification for “very small business” was added and is defined as an entity that, together with their affiliates, has average gross revenues of not more than $15 million for the preceding three calendar years. [154] These regulations defining “small entity” in the context of 39 GHz auctions have been approved by the SBA. The auction of the 2,173 39 GHz licenses began on April 12, 2000 and closed on May 8, 2000. The 18 bidders who claimed small business status won 849 licenses.

    53. Local Multipoint Distribution Service. The auction of the 1,030 Local Multipoint Distribution Service (LMDS) licenses began on February 18, 1998 and closed on March 25, 1998. The Commission defined “small entity” for LMDS licenses as an entity that has average gross revenues of less than $40 million in the three previous calendar years. [155] An additional classification for “very small business” was added and is defined as an entity that, together with its affiliates, has average gross revenues of not more than $15 million for the preceding three calendar years. [156] These regulations defining “small entity” in the context of LMDS auctions have been approved by the SBA. [157] There were 93 winning bidders that qualified as small entities in the LMDS auctions. A total of 93 small and very small business bidders won approximately 277 A Block licenses and 387 B Block licenses. On March 27, 1999, the Commission re-auctioned 161 licenses; there were 40 small business winning bidders. Based on this information, we conclude that the number of small LMDS licenses will include the 93 winning bidders in the first auction and the 40 winning bidders in the re-auction, for a total of 133 small entity LMDS providers as defined by the SBA and the Commission's auction rules.

    54. 218-219 MHz Service. The first auction of 218-219 MHz spectrum resulted in 170 entities winning licenses for 595 Metropolitan Statistical Area (MSA) licenses. Of the 594 licenses, 557 were won by entities qualifying as a small business. For that auction, we defined a small business as an entity that, together with its affiliates, has no more than a $6 million net worth and, after federal income taxes (excluding any carry over losses), has no more than $2 million in annual profits each year for the previous two years. [158] In the 218-219 MHz Report and Order and Memorandum Opinion and Order, we defined a small business as an entity that, together with its affiliates and persons or entities that hold interests in such an entity and their affiliates, has average annual gross revenues not to exceed $15 million for the preceding three years. [159] A very small business is defined as an entity that, together with its affiliates and persons or entities that hold interests in such an entity and its affiliates, has average annual gross revenues Start Printed Page 46314not to exceed $3 million for the preceding three years. [160] We cannot estimate, however, the number of licenses that will be won by entities qualifying as small or very small businesses under our rules in future auctions of 218-219 MHz spectrum. Given the success of small businesses in the previous auction, and the above discussion regarding the prevalence of small businesses in the subscription television services and message communications industries, we assume for purposes of this IRFA that in future auctions, all of the licenses may be awarded to small businesses by these revised rules.

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

    55. With certain exceptions, the Commission's Schedule of Regulatory Fees applies to all Commission licensees and regulatees. Most licensees will be required to count the number of licenses or call signs authorized, complete and submit an FCC Form 159 (“FCC Remittance Advice”), and pay a regulatory fee based on the number of licenses or call signs. [161] Interstate telephone service providers must compute their annual regulatory fee based on their interstate and international end-user revenue using information they already supply to the Commission in compliance with the Form 499-A, Telecommunications Reporting Worksheet, and they must complete and submit the FCC Form 159. Compliance with the fee schedule will require some licensees to tabulate the number of units (e.g., cellular telephones, pagers, cable TV subscribers) they have in service, and complete and submit an FCC Form 159. Licensees ordinarily will keep a list of the number of units they have in service as part of their normal business practices. No additional outside professional skills are required to complete the FCC Form 159, and it can be completed by the employees responsible for an entity's business records.

    56. Each licensee must submit the FCC Form 159 to the Commission's lockbox bank after computing the number of units subject to the fee. Licensees may also file electronically to minimize the burden of submitting multiple copies of the FCC Form 159. Applicants who pay small fees in advance and provide fee information as part of their application must use FCC Form 159.

    57. Licensees and regulatees are advised that failure to submit the required regulatory fee in a timely manner will subject the licensee or regulatee to a late payment penalty of 25 percent in addition to the required fee. [162] If payment is not received, new or pending applications may be dismissed, and existing authorizations may be subject to rescission. [163] Further, in accordance with the Debt Collection Improvement Act of 1996, federal agencies may bar a person or entity from obtaining a federal loan or loan insurance guarantee if that person or entity fails to pay a delinquent debt owed to any federal agency. [164] Nonpayment of regulatory fees is a debt owed the United States pursuant to 31 U.S.C. 3711 et seq., and the Debt Collection Improvement Act of 1996, Public Law 194-134. Appropriate enforcement measures as well as administrative and judicial remedies, may be exercised by the Commission. Debts owed to the Commission may result in a person or entity being denied a federal loan or loan guarantee pending before another federal agency until such obligations are paid. [165]

    58. The Commission's rules currently provide for relief in exceptional circumstances. Persons or entities may request a waiver, reduction or deferment of payment of the regulatory fee. [166] However, timely submission of the required regulatory fee must accompany requests for waivers or reductions. This will avoid any late payment penalty if the request is denied. The fee will be refunded if the request is granted. In exceptional and compelling instances (where payment of the regulatory fee along with the waiver or reduction request could result in reduction of service to a community or other financial hardship to the licensee), the Commission will defer payment in response to a request filed with the appropriate supporting documentation.

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

    59. The RFA requires an agency to describe any significant alternatives that it has considered in reaching its proposed approach, which may include the following four alternatives: (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. As described in Section IV of this IRFA, supra, we have created procedures in which all fee-filing licensees and regulatees use a single form, FCC Form 159, and have described in plain language the general filing requirements. We have also created Attachment F, infra, which gives “Detailed Guidance on Who Must Pay Regulatory Fees.” Because the collection of fees is statutory, our efforts at proposing alternatives are constrained and, throughout these annual fee proceedings, have been largely directed toward simplifying the instructions and necessary procedures for all filers. We have sought comment on other alternatives that might simplify our fee procedures or otherwise benefit small entities, while remaining consistent with our statutory responsibilities in this proceeding.

    60. The Omnibus Consolidated and Emergency Supplemental Appropriations Act for FY 2000, Public Law 106-553, requires the Commission to revise its Schedule of Regulatory Fees in order to recover the amount of regulatory fees that Congress, pursuant to Section 9(a) of the Communications Act, as amended, has required the Commission to collect for Fiscal Year (FY) 2002.[167] As noted, we have previously sought comment on the proposed methodology for implementing these statutory requirements and any other potential impact of these proposals on small entities.

    61. With the use of actual cost accounting data for computation of regulatory fees, we found that some fees which were very small in previous years would have increased dramatically and would have a disproportionate impact on smaller entities. The methodology we are adopting in this Report and Order minimizes this impact by limiting the amount of increase and shifting costs to other services which, for the most part, are larger entities.

    62. Several categories of licensees and regulatees are exempt from payment of regulatory fees. See, e.g., footnote 161, supra, and Attachment F of the Report and Order, infra.

    Report to Small Business Administration: The Commission will send a copy of this Report and Order, including a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration. The Report and Order and FRFA (or summaries thereof) will also be published in the Federal Register.

    Report to Congress: The Commission will send a copy of this Final Regulatory Flexibility Analysis, along with this Report and Order, in a report to Congress pursuant to the Congressional Review Act, 5 U.S.C. 801(a)(1)(A).Start Printed Page 46315

    Attachment B—Sources of Payment Unit Estimates for FY 2002

    In order to calculate individual service fees for FY 2002, we adjusted FY 2001 payment units for each service to more accurately reflect expected FY 2002 payment liabilities. We obtained our updated estimates through a variety of means. For example, we used Commission licensee data bases, actual prior year payment records and industry and trade association projections when available. We tried to obtain verification for these estimates from multiple sources and, in all cases, we compared FY 2002 estimates with actual FY 2001 payment units to ensure that our revised estimates were reasonable. Where appropriate, we adjusted and/or rounded our final estimates to take into consideration the fact that certain variables that impact on the number of payment units cannot yet be estimated exactly. These include an unknown number of waivers and/or exemptions that may occur in FY 2002 and the fact that, in many services, the number of actual licensees or station operators fluctuates from time to time due to economic, technical or other reasons. Therefore, when we note, for example, that our estimated FY 2002 payment units are based on FY 2001 actual payment units, it does not necessarily mean that our FY 2002 projection is exactly the same number as FY 2001. It means that we have either rounded the FY 2002 number or adjusted it slightly to account for these variables.

    Fee categorySources of payment unit estimates
    Land Mobile (All), Microwave, 218-219 MHz ,168 Marine (Ship & Coast), Aviation (Aircraft & Ground), GMRS, Amateur Vanity Call Signs, Domestic Public FixedBased on Wireless Telecommunications Bureau (WTB) projections of new applications and renewals taking into consideration existing Commission licensee data bases. Aviation (Aircraft) and Marine (Ship) estimates have been adjusted to take into consideration the licensing of portions of these services on a voluntary basis.
    CMRS Mobile ServicesBased on Wireless Telecommunications Bureau estimates.
    CMRS Messaging ServicesBased on Wireless Telecommunications Bureau estimates.
    AM/FM Radio StationsBased on estimates from Mass Media Bureau estimates.
    UHF/VHF Television StationsBased on Mass Media Bureau estimates and actual FY 2001 payment units.
    AM/FM/TV Construction PermitsBased on Mass Media Bureau estimates and actual FY 2001 payment units.
    LPTV, Translators BoostersBased on actual FY 2001 payment units.
    AuxiliariesBased on Wireless Telecommunications Bureau estimates.
    MDS/LMDS/MMDSBased on Mass Media Bureau estimates.
    Cable Antenna Relay Device (CARS)Based on Wireline Competition Bureau (previously Cable Services Bureau) estimates.
    Cable Television System SubscribersBased on Wireline Competition Bureau (previously Cable Services Bureau) and industry estimates of subscribership.
    Interstate Telecommunication Service ProvidersBased on actual FY 2001 interstate revenues reported on Telecommunications Reporting Worksheet, adjusted for FY 2002 revenue growth for industry as estimated by Wireline Competition Bureau.
    Earth StationsBased on International Bureau estimates.
    Space Stations (GSOs & NGSOs)Based on International Bureau licensee data bases.
    International Bearer CircuitsBased on International Bureau estimates.
    International HF Broadcast Stations, International Public Fixed Radio ServiceBased on International Bureau estimates.
    168 The Wireless Telecommunications Bureau's staff advises that they anticipate receiving only 25 applications for 218-219 MHz (formerly IVDS) in FY 2001.

    Attachment C—Calculation of FY 2002 Revenue Requirements and Pro-Rata Fees

    Fee categoryFY 2002 payment unitsPayment yearsFY 2001 revenue estimatePro-rated FY 2002 revenue requirementComputed new FY 2002 regulatory feeRounded new FY 2002 regulatory feeExpected Fy 2002 revenue
    PLMRS (Exclusive Use)4,10010275,000300,57575205,000
    PLMRS (Shared use)43,500102,900,0003,169,700752,175,000
    Microwave11,500101,195,0001,306,13511101,150,000
    218-219 MHz (Formerly IVDS)5101,2501,36627251,250
    Marine (Ship)5,20010550,000601,1501210520,000
    GMRS3,180550,00054,6503579,500
    Aviation (Aircraft)2,70010175,000191,27575135,000
    Marine (Coast)9001065,00071,04581090,000
    Aviation (Ground)2,000585,00092,905910100,000
    Amateur Vanity Call Signs9,00010120,000131,1601.461.45130,500
    AM Class A761146,300159,9062,1042,100159,600
    AM Class B1,67211,806,3001,974,2861,1811,1751,964,600
    AM Class C9901618,760676,305683685678,150
    AM Class D1,93312,033,8502,222,9981,1501,1502,222,950
    FM Classes A, B1 & C33,19214,160,0004,546,8801,4241,4254,548,600
    FM Classes B, C, C1 & C22,95615,166,3005,646,7661,9101,9005,616,400
    AM Construction Permits48116,24017,75037037017,760
    FM Construction Permits2021277,500303,3081,5021,500303,000
    Satellite TV128193,980102,720803805103,040
    Satellite TV Construction Permit511,9202,0994204202,100
    VHF Markets 1-104411,894,2002,070,36147,05447,0502,070,200
    Start Printed Page 46316
    VHF Markets 11-256111,936,6752,116,78634,70134,7002,116,700
    VHF Markets 26-507611,642,0251,794,73323,61523,6251,795,500
    VHF Markets 51-10011411,581,2501,728,30615,16115,1501,727,100
    VHF Remaining Markets2151691,025755,2903,5133,525757,875
    VHF Construction Permits22155,35060,4982,7502,75060,500
    UHF Markets 1-109711,136,2501,241,92112,80312,8001,241,600
    UHF Markets 11-25981922,5001,008,29310,28910,3001,009,400
    UHF Markets 26-501291778,250850,6276,5946,600851,400
    UHF Markets 51-1001901672,375734,9063,8683,875736,250
    UHF Remaining Markets2061201,250219,9661,0681,075221,450
    UHF Construction Permits591280,000306,0405,1875,175305,325
    Auxiliaries24,0001270,000295,1101210240,000
    International HF Broadcast612,7202,9734954952,970
    LPTV/Translators/Boosters2,8001823,500900,086321320896,000
    CARS1,600193,500102,1966465104,000
    Cable Systems68,980,000133,431,84436,541,0050.530.5336,541,005
    Interstate Telecommunication Service Providers66,544,000,000193,387,376102,072,4020.001530.00153102,072,402
    CMRS Mobile Services (Cellular/Public Mobile)125,000,000127,404,52029,953,1400.240.2429,953,140
    CMRS Messaging Services23,600,00011,625,0541,776,1840.080.081,776,184
    MDS/MMDS/LMDS2,3001900,000983,700428430989,000
    International Bearer Circuits2,830,00014,202,2554,593,0651.6225,660,000
    International Public Fixed111,2751,3941,3941,4001,400
    Earth Stations3,8731501,120547,724141140542,220
    Space Stations (Geostationary)7116,476,2507,078,54199,69899,7007,078,700
    Space Stations (Non-geostationary)61566,550619,239103,207103,200619,200
    Total Estimated Revenue to be Collected201,214,514219,927,464219,571,972
    Total Revenue Requirement218,757,000218,757,000
    Difference1,170,464814,972
    Note.—1.093 factor applied based on the amount Congress designated for recovery through regulatory fees (Public Law 107-77 and 47 U.S.C. 159(a)(2)).

    Attachment D—FY 2002 Schedule of Regulatory Fees

    Fee categoryAnnual regulatory fee
    PLMRS (per license) (Exclusive Use) (47 CFR part 90)$5
    Microwave (per license) (47 CFR part 101)10
    218-219 MHz (Formerly Interactive Video Data Service) (per license) (47 CFR part 95)25
    Marine (Ship) (per station) (47 CFR part 80)10
    Marine (Coast) (per license) (47 CFR part 80)10
    General Mobile Radio Service (per license) (47 CFR part 95)5
    Rural Radio (47 CFR part 22) (previously listed under the Land Mobile category)5
    PLMRS (Shared Use) (per license) (47 CFR part 90)5
    Aviation (Aircraft) (per station) (47 CFR part 87)5
    Aviation (Ground) (per license) (47 CFR part 87)10
    Amateur Vanity Call Signs (per call sign) (47 CFR part 97)1.45
    CMRS Mobile Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90).24
    CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90).08
    Multipoint Distribution Services (MMDS, LMDS & MDS) (per call sign) (47 CFR part 21)430
    AM Radio Construction Permits370
    Start Printed Page 46317
    FM Radio Construction Permits1,500
    TV (47 CFR part 73) VHF Commercial:
    Markets 1-1047,050
    Markets 11-2534,700
    Markets 26-5023,625
    Markets 51-10015,150
    Remaining Markets3,525
    Construction Permits2,750
    TV (47 CFR part 73) UHF Commercial:
    Markets 1-1012,800
    Markets 11-2510,300
    Markets 26-506,600
    Markets 51-1003,875
    Remaining Markets1,075
    Construction Permits5,175
    Satellite Television Stations (All Markets)805
    Construction Permits—Satellite Television Stations420
    Low Power TV, TV/FM Translators & Boosters (47 CFR part 74)320
    Broadcast Auxiliary (47 CFR part 74)10
    CARS (47 CFR part 78)65
    Cable Television Systems (per subscriber) (47 CFR part 76).53
    Interstate Telecommunication Service Providers (per revenue dollar).00153
    Earth Stations (47 CFR part 25)140
    Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes Direct Broadcast Satellite Service (per operational station) (47 CFR part 100)99,700
    Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25)103,200
    International Bearer Circuits (per active 64KB circuit)2
    International Public Fixed (per call sign) (47 CFR part 23)1,400
    International (HF) Broadcast (47 CFR part 73)495

    FY 2002 Radio Station Regulatory Fees

    Population ServedAM Class AAM Class BAM Class CAM Class DFM Classes A, B1 & C3FM Classes B, C, C1 & C2
    <=20,000500375275325375500
    20,001-50,000925725375525725925
    50.001-125,0001,5009755257759751,500
    125,001-400,0002,2501,5758009501,5752,250
    400,001-1,000,0003,1252,5251,4251,7002,5253,125
    >1,000,0004,9754,1002,0752,6254,1004,975

    Attachment E—Comparison Between FY 2001, FY 2002 Proposed and Final Regulatory Fees

    Fee categoryAnnual regulatory fee FY 2001NPRM proposed fee FY 2002Annual regulatory fee FY 2002
    PLMRS (per license) (Exclusive Use) (47 CFR part 90)555
    Microwave (per license) (47 CFR part 101)51010
    218-219 MHz (Formerly Interactive Video Data Service) (per license) (47 CFR part 95)102525
    Marine (Ship) (per station) (47 CFR part 80)101010
    Marine (Coast) (per license) (47 CFR part 80)51010
    General Mobile Radio Service (per license) (47 CFR part 95)555
    Rural Radio (47 CFR part 22) (previously listed under Land Mobile)555
    PLMRS (Shared Use) (47 CFR part 90)555
    Aviation (Aircraft) (per station) (47 CFR part 87)555
    Aviation (Ground) (per license) (47 CFR part 87)101010
    Amateur Vanity Call Signs (per call sign) (47 CFR part 97)1.201.451.45
    CMRS Mobile Services (per unit) (47 CFR parts 20, 22, 24, 27, 80 and 90).27.24.24
    CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and 90).05.08.08
    Multipoint Distribution Services (Includes MMDS, LMDS & MDS) (per call sign) (47 CFR part 21)450430430
    AM Construction Permits280370370
    FM Construction Permits9251,5001,500
    TV (47 CFR part 73) VHF Commercial:
    Markets 1-1045,10047,05047,050
    Markets 11-2532,82534,70034,700
    Markets 26-5021,32523,62523,625
    Markets 51-10013,75015,15015,150
    Remaining Markets3,2753,5253,525
    Construction Permits3,0752,7502,750
    Start Printed Page 46318
    TV (47 CFR part 73) UHF Commercial:
    Markets 1-1015,15012,80012,800
    Markets 11-2512,30010,30010,300
    Markets 26-507,0756,6006,600
    Markets 51-1004,0753,8753,875
    Remaining Markets1,1501,0751,075
    Construction Permits4,0005,1755,175
    Satellite Television Stations (All Markets)740805805
    Construction Permits—Satellite Television Stations480420420
    Low Power TV, TV/FM Translators & Boosters (47 CFR part 74)305320320
    Broadcast Auxiliary (47 CFR part 74)101010
    CARS (47 CFR part 78)556565
    Earth Stations (47 CFR part 25)180140140
    Cable Television Systems (per subscriber) (47 CFR part 76).49.53.53
    Interstate Telecommunication Service Providers (per revenue dollar).00132.00153.00153
    Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes Direct Broadcast Satellite Service (per operational station) (47 CFR part 100)98,12599,70099,700
    Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25)94,425123,850103,200
    International Bearer Circuits (per active 64KB circuit)522
    International Public Fixed (per call sign) (47 CFR part 23)1,2751,4001,400
    International (HF) Broadcast (47 CFR part 73)680495495

    FY 2001 Radio Station Regulatory Fees

    Population servedAM Class AAM Class BAM Class CAM Class DFM Classes A, B1 & C3FM Classes B, C, C1 & C2
    <=20,000450350250300350450
    20,001-50,000850675350475675850
    50.001-125,0001,3759004757009001,375
    125,001-400,0002,0501,4507258751,4502,050
    400,001-1,000,0002,8502,3001,3001,5502,3002,850
    >1,000,0004,5503,7501,9002,4003,7504,550

    FY 2001 Radio Station Regulatory Fees

    Population servedAM Class AAM Class BAM Class CAM Class DFM Classes A, B1 & C3FM Classes B, C, C1 & C2
    <=20,000500375275325375500
    20,001-50,000925725375525725925
    50.001-125,0001,5009755257759751,500
    125,001-400,0002,2501,5758009501,5752,250
    400,001-1,000,0003,1252,5251,4251,7002,5253,125
    >1,000,0004,9754,1002,0752,6254,1004,975

    Attachment F—Detailed Guidance on Who Must Pay Regulatory Fees

    1. The guidelines below provide an explanation of regulatory fee categories established by the Schedule of Regulatory Fees in section 9(g) of the Communications Act,[169] as modified in the instant Report and Order. Where regulatory fee categories need interpretation or clarification, we have relied on the legislative history of section 9, our own experience in establishing and regulating the Schedule of Regulatory Fees for Fiscal Years (FY) 1994 through 2001, and the services subject to the fee schedule. The categories and amounts set out in the schedule have been modified to reflect changes in the number of payment units, additions and changes in the services subject to the fee requirement and the benefits derived from the Commission's regulatory activities, and to simplify the structure of the schedule. The schedule may be similarly modified or adjusted in future years to reflect changes in the Commission's budget and in the services regulated by the Commission.[170]

    2. Exemptions. Governments and nonprofit entities are exempt from paying regulatory fees and should not submit payment. A nonprofit entity is required to have on file with the Commission an IRS Determination Letter documenting that it is exempt from taxes under section 501 of the Internal Revenue Code or the certification of a governmental authority attesting to its nonprofit status. In instances where the IRS Determination Letter or the letter of certification from a governmental authority attesting to its nonprofit status is not sufficiently current, the nonprofit entity may be asked to submit more current documentation. The governmental exemption applies even where the government-owned or community-owned facility is in competition with a commercial operation. Other specific exemptions are discussed below in the descriptions of other particular service categories.Start Printed Page 46319

    1. Private Wireless Radio Services

    3. Two levels of statutory fees were established for the Private Wireless Radio Services—exclusive use services and shared use services. Thus, licensees who generally receive a higher quality communication channel due to exclusive or lightly shared frequency assignments will pay a higher fee than those who share marginal quality assignments. This dichotomy is consistent with the directive of section 9, that the regulatory fees reflect the benefits provided to the licensees.[171] In addition, because of the generally small amount of the fees assessed against Private Wireless Radio Service licensees, applicants for new licenses and reinstatements and for renewal of existing licenses are required to pay a regulatory fee covering the entire license term, with only a percentage of all licensees paying a regulatory fee in any one year. Applications for modification or assignment of existing authorizations do not require the payment of regulatory fees. The expiration date of those authorizations will reflect only the unexpired term of the underlying license rather than a new license term.

    a. Exclusive Use Services

    4. Private Land Mobile Radio Services (PLMRS) (Exclusive Use): Regulatees in this category include those authorized under part 90 of the Commission's Rules to provide limited access Wireless Radio service that allows high quality voice or digital communications between vehicles or to fixed stations to further the business activities of the licensee. These services, using the 220-222 MHz band and frequencies at 470 MHz and above, may be offered on a private carrier basis in the Specialized Mobile Radio Services (SMRS).[172] For FY 2002, PLMRS licensees will pay a $5 annual regulatory fee per license, payable for an entire ten-year license term at the time of application for a new, renewal, or reinstatement license.[173] The total regulatory fee due is $50 for the ten-year term.

    5. Microwave Services: These services include private and commercial microwave systems and private and commercial carrier systems authorized under part 101 of the Commission's Rules to provide telecommunications services between fixed points on a high quality channel of communications. Microwave systems are often used to relay data and to control railroad, pipeline, and utility equipment. Commercial systems typically are used for video or data transmission or distribution. For FY 2002, Microwave licensees will pay a $10 annual regulatory fee per license, payable for an entire ten-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $100 for the ten-year license term.

    6. 218-219 MHz (Formerly Interactive Video Data Service (IVDS)): The 218-219 MHz service is a two-way, point-to-multi-point radio service allocated high quality channels of communications and authorized under part 95 of the Commission's Rules. The 218-219 MHz service provides information, products, and services, and also the capability to obtain responses from subscribers in a specific service area. The 218-219 MHz service is offered on a private carrier basis. The Commission anticipated receiving 25 applications in the 218-219 MHz service during FY 2001. For FY 2002, we anticipate receiving five applications and propose that the annual regulatory fee for 218-219 MHz licensees be set at $25 per application. The total regulatory fee due would be $250 for the ten-year license term.

    b. Shared Use Services

    7. Marine (Ship) Service: This service is a shipboard radio service authorized under part 80 of the Commission's Rules to provide telecommunications between watercraft or between watercraft and shore-based stations. Radio installations are required by domestic and international law for large passenger or cargo vessels. Radio equipment may be voluntarily installed on smaller vessels, such as recreational boats. The Telecommunications Act of 1996 gave the Commission the authority to license certain ship stations by rule rather than by individual license. The Commission exercises that authority. Private boat operators sailing entirely within domestic U.S. waters and who are not otherwise required by treaty or agreement to carry a radio, are no longer required to hold a marine license, and they will not be required to pay a regulatory fee. For FY 2002, parties required to be licensed and those choosing to be licensed for Marine (Ship) Stations will pay a $10 annual regulatory fee per station, payable for an entire ten-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $100 for the ten-year license term.

    8. Marine (Coast) Service: This service includes land-based stations in the maritime services, authorized under part 80 of the Commission's Rules, to provide communications services to ships and other watercraft in coastal and inland waterways. For FY 2002, licensees of Marine (Coast) Stations will pay a $10 annual regulatory fee per call sign, payable for the entire ten-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $100 per call sign for the ten-year license term.

    9. Private Land Mobile Radio Services (PLMRS)(Shared Use): These services include Land Mobile Radio Services operating under parts 90 and 95 of the Commission's Rules. Services in this category provide one-or two-way communications between vehicles, persons or fixed stations on a shared basis and include radiolocation services, industrial radio services, and land transportation radio services. For FY 2002, licensees of services in this category will pay a $5 annual regulatory fee per call sign, payable for an entire ten-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $50 for the ten-year license term.

    10. Aviation (Aircraft) Service: These services include stations authorized to provide communications between aircraft and between aircraft and ground stations and include frequencies used to communicate with air traffic control facilities pursuant to part 87 of the Commission's Rules. The Telecommunications Act of 1996 gave the Commission the authority to license certain aircraft radio stations by rule rather than by individual license. The Commission exercises that authority. Private aircraft operators flying entirely within domestic U.S. airspace and who are not otherwise required by treaty or agreement to carry a radio are no longer required to hold an aircraft license, and they will not be required to pay a regulatory fee. For FY 2002, parties required to be licensed and those choosing to be licensed for Aviation (Aircraft) Stations will pay a $5 annual regulatory fee per station, payable for the entire ten-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee due is $50 per station for the ten-year license term.

    11. Aviation (Ground) Service: This service includes stations authorized to provide ground-based communications Start Printed Page 46320to aircraft for weather or landing information, or for logistical support pursuant to part 87 of the Commission's Rules. Certain ground-based stations which only serve itinerant traffic, i.e., possess no actual units on which to assess a fee, are exempt from payment of regulatory fees. For FY 2002, licensees of Aviation (Ground) Stations will pay a $10 annual regulatory fee per license, payable for the entire five-year license term at the time of application for a new, renewal, or reinstatement license. The total regulatory fee is $50 per call sign for the five-year license term.

    12. General Mobile Radio Service (GMRS): These services include Land Mobile Radio licensees providing personal and limited business communications between vehicles or to fixed stations for short-range, two-way communications pursuant to part 95 of the Commission's Rules. For FY 2002, GMRS licensees will pay a $5 annual regulatory fee per license, payable for an entire five-year license term at the time of application for a new, renewal or reinstatement license. The total regulatory fee due is $25 per license for the five-year license term.

    c. Amateur Radio Vanity Call Signs

    13. Amateur Vanity Call Signs: This category covers voluntary requests for specific call signs in the Amateur Radio Service authorized under part 97 of the Commission's Rules. Applicants for Amateur Vanity Call-Signs will continue to pay a $1.20 annual regulatory fee per call sign, as prescribed in the FY 2001 fee schedule, payable for an entire ten-year license term at the time of application for a vanity call sign until the FY 2002 fee schedule becomes effective. The total regulatory fee due would be $12 per license for the ten-year license term.[174] For FY 2002, Amateur Vanity Call Sign applicants will pay a $1.45 annual regulatory fee per call sign, payable for an entire ten-year term at the time of application for a new, renewal or reinstatement license. The total regulatory fee due is $14.50 per call sign for the ten-year license term.

    d. Commercial Wireless Radio Services

    14. Commercial Mobile Radio Services (CMRS) Mobile Services: The Commercial Mobile Radio Service (CMRS) is an “umbrella” descriptive term attributed to various existing broadband services authorized to provide interconnected mobile radio services for profit to the public, or to such classes of eligible users as to be effectively available to a substantial portion of the public. CMRS Mobile Services include certain licensees which formerly were licensed as part of the Private Radio Services (e.g., Specialized Mobile Radio Services) and others formerly licensed as part of the Common Carrier Radio Services (e.g., Public Mobile Services and Cellular Radio Service). While specific rules pertaining to each covered service remain in separate parts 22, 24, 27, 80 and 90, general rules for CMRS are contained in part 20. CMRS Mobile Services will include: Specialized Mobile Radio Services (part 90);[175] Broadband Personal Communications Services (part 24), Public Coast Stations (part 80); Public Mobile Radio (Cellular, 800 MHz Air-Ground Radiotelephone, and Offshore Radio Services) (part 22); and Wireless Communications Service (part 27). Each licensee in this group will pay an annual regulatory fee for each mobile or cellular unit (mobile or telephone number), assigned to its customers, including resellers of its services. For FY 2002, the regulatory fee is $.24 per unit.

    15. Commercial Mobile Radio Services (CMRS) Messaging Services: The Commercial Mobile Radio Service (CMRS) is an “umbrella” descriptive term attributed to various existing narrowband services authorized to provide interconnected mobile radio services for profit to the public, or to such classes of eligible users as to be effectively available to a substantial portion of the public. CMRS Messaging Services include certain licensees which formerly were licensed as part of the Private Radio Services (e.g., Private Paging and Radiotelephone Service), licensees formerly licensed as part of the Common Carrier Radio Services (e.g., Public Mobile One-Way Paging), licensees of Narrowband Personal Communications Service (PCS) (e.g., one-way and two-way paging), and 220-222 MHz Band and Interconnected Business Radio Service. In addition, this category includes small SMR systems authorized for use of less than 10 MHz of bandwidth. While specific rules pertaining to each covered service remain in separate parts 22, 24 and 90, general rules for CMRS are contained in part 20. Each licensee in the CMRS Messaging Services will pay an annual regulatory fee for each unit (pager, telephone number, or mobile) assigned to its customers, including resellers of its services. For FY 2002, the regulatory fee is $.08 per unit.

    16. Finally, with regard to our definition of a CMRS payment units, we clarify that fees are assessable on each CMRS subscriber considered “active” as of December 31, 2001. Examples of CMRS subscribers include: subscribers of terrestrial mobile telephone services, subscribers of one-way or two-way paging services, and subscribers of other wireless messaging services that are capable of transmitting and/or receiving data communications. A “feeable” CMRS payment unit is a CMRS subscriber that has possession of a mobile device that can transmit or receive voice or non-voice communications, or a CMRS subscriber has a contractual agreement for the provision of a CMRS service. The responsible payer of the regulatory fee is the CMRS licensee. For example, John Doe purchases a pager and obtains a paging services contract from Paging Licensee X. Paging Licensee X is responsible for paying the applicable regulatory fee for this unit. Further, if John Doe purchases a pager and obtains paging services from a paging reseller which resells services from Paging Licensee X, Paging Licensee X is still responsible for paying the applicable regulatory fee for this CMRS payment unit.

    2. Media Services

    17. The regulatory fees for the Media fee category apply to broadcast licensees and permittees. Noncommercial Educational Broadcasters are exempt from regulatory fees.

    a. Commercial Radio

    18. These categories include licensed Commercial AM (Classes A, B, C, and D) and FM (Classes A, B, B1, C, C1, C2, and C3) Radio Stations operating under part 73 of the Commission's Rules.[176] We have combined class of station and city grade contour population data to formulate a schedule of radio fees which differentiate between stations based on class of station and population served. In general, higher class stations and stations in metropolitan areas will pay Start Printed Page 46321higher fees than lower class stations and stations located in rural areas. The specific fee that a station must pay is determined by where it ranks after weighting its fee requirement (determined by class of station) with its population. The regulatory fee classifications for Radio Stations for FY 2002 are as follows:

    FY 2002 Radio Station Regulatory Fees

    Population servedAM class AAM class BAM class CAM class DFM classes A, B1 & C3FM classes B, C, C1 & C2
    <=20,000500375275325375500
    20,001-50,000925725375525725925
    50.001-125,0001,5009755257759751,500
    125,001-400,0002,2501,5758009501,5752,250
    400,001-1,000,0003,1252,5251,4251,7002,5253,125
    >1,000,0004,9754,1002,0752,6254,1004,975

    19. Licensees may determine the appropriate fee payment by referring to the FCC's internet world wide web site (http://www.fcc.gov) or by calling the FCC's National Call Center (1-888-225-5322). The same information may be included in the Public Notices mailed to each licensee for which we have a current address on file.

    (Note:

    Non-receipt of a Public Notice does not relieve a licensee of its obligation to submit its regulatory fee payment).

    b. Construction Permits—Commercial AM Radio

    20. This category includes holders of permits to construct new Commercial AM Stations. For FY 2002, a regulatee who held a construction permit on October 1, 2001 will pay a fee of $370 for each permit. A regulatee pays a construction permit fee only if the permit is for a new facility. If the regulatee held a license on October 1, 2001 or prior, but also has a construction permit to make modifications to the licensed facility, it is required to pay the applicable license fee for the designated group in the above table.

    c. Construction Permits—Commercial FM Radio

    21. This category includes holders of permits to construct new Commercial FM Stations. For FY 2002, a regulatee who held a construction permit on October 1, 2001 will pay a fee of $1,500 for each permit. A regulatee pays a construction permit fee only if the permit is for a new facility. If the regulatee held a license on October 1, 2001 or prior, but also has a construction permit to make modifications to the licensed facility, it is required to pay the applicable license fee for the designated group in the above table.

    d. Commercial Television Stations

    22. This category includes licensed Commercial VHF and UHF Television Stations covered under part 73 of the Commission's Rules, except commonly owned Television Satellite Stations, addressed separately below. Markets are Nielsen Designated Market Areas (DMA) as listed in the Television & Cable Factbook, Stations Volume No. 70, 2002 Edition, Warren Publishing, Inc., or similar source. The fees for each station categories are as follows:

     
    VHF Markets 1-10$47,050
    VHF Markets 11-2534,700
    VHF Markets 26-5023,625
    VHF Markets 51-10015,150
    VHF Remaining Markets3,525
    UHF Markets 1-1012,800
    UHF Markets 11-2510,300
    UHF Markets 26-506,600
    UHF Markets 51-1003,875
    UHF Remaining Markets1,075

    e. Commercial Television Satellite Stations

    23. Commonly owned Television Satellite Stations in any market (authorized pursuant to Note 5 of § 73.3555 of the Commission's Rules) that retransmit programming of the primary station are assessed a fee of $805 annually. Those stations designated as Television Satellite Stations in the 2002 Edition of the Television and Cable Factbook (or similar source) are subject to the fee applicable to Television Satellite Stations. All other television licensees are subject to the regulatory fee payment required for their class of station and market.

    f. Construction Permits—Commercial VHF Television Stations

    24. This category includes holders of permits to construct new Commercial VHF Television Stations authorized as of October 1, 2001. For FY 2002, a regulatee who held a construction permit on October 1, 2001 will pay a fee of $2,750 for each permit. A regulatee pays a construction permit fee only if the permit is for a new facility. If the regulatee held a license on October 1, 2001 or prior, but also has a construction permit to make modifications to the licensed facility, it is required to pay the applicable license fee for the designated group within which the television station appears.

    g. Construction Permits—Commercial UHF Television Stations

    25. This category includes holders of permits to construct new UHF Television Stations authorized as of October 1, 2001. For FY 2002, a regulatee who held a construction permit on October 1, 2001 will pay a fee of $5,175 for each permit. A regulatee pays a construction permit fee only if the permit is for a new facility. If the regulatee held a license on October 1, 2001 or prior, but also has a construction permit to make modifications to the licensed facility, it is required to pay the applicable license fee for the designated group within which the television station appears.

    h. Construction Permits—Satellite Television Stations

    26. The fee for UHF and VHF Television Satellite Station construction permits for FY 2002 is $420. A regulatee who held a construction permit on October 1, 2001 will pay a fee of $420 for each permit. A regulatee pays a construction permit fee only if the permit is for a new facility. If the regulatee held a license on October 1, 2001 or prior, but also has a construction permit to make modifications to the licensed facility, it is required to pay the applicable license fee for the designated group within which the station appears.

    Start Printed Page 46322

    i. Low Power Television, FM Translator and Booster Stations, TV Translator and Booster Stations

    27. This category includes Low Power UHF/VHF Television stations operating under part 74 of the Commission's Rules with a transmitter power output limited to 1 kW for a UHF facility and, generally, 0.01 kW for a VHF facility. Low Power Television (LPTV) stations may retransmit the programs and signals of a TV Broadcast Station, originate programming, and/or operate as a subscription service. This category also includes translators and boosters operating under part 74 which rebroadcast the signals of full service stations on a frequency different from the parent station (translators) or on the same frequency (boosters). The stations in this category are secondary to full service stations in terms of frequency priority. We have also received requests for waivers of the regulatory fees from operators of community based Translators. These Translators are generally not affiliated with commercial broadcasters, are nonprofit, nonprofitable, or only marginally profitable, serve small rural communities, and are supported financially by the residents of the communities served. We are aware of the difficulties these Translators have in paying even minimal regulatory fees, and we have addressed those concerns in the ruling on reconsideration of the FY 1994 Report and Order. Community based Translators that meet certain requirements will have their fees waived.[177] For FY 2002, licensees in low power television, FM translator and booster, and TV translator and booster category will pay a regulatory fee of $320 for each license held.

    j. Broadcast Auxiliary Stations

    28. This category includes licensees of remote pickup stations (either base or mobile) and associated accessory equipment authorized pursuant to a single license, Aural Broadcast Auxiliary Stations (Studio Transmitter Link and Inter-City Relay) and Television Broadcast Auxiliary Stations (TV Pickup, TV Studio Transmitter Link, TV Relay) authorized under part 74 of the Commission's Rules. Auxiliary Stations are generally associated with a particular television or radio broadcast station or cable television system. This category does not include translators and boosters (see paragraph 26 infra). For FY 2002, licensees of Commercial Auxiliary Stations will pay a $10 annual regulatory fee on a per call sign basis.

    k. Multipoint Distribution Service

    29. This category includes Multipoint Distribution Service (MDS), Local Multipoint Distribution Service (LMDS), and Multichannel Multipoint Distribution Service (MMDS), authorized under parts 21 and 101 of the Commission's Rules to use microwave frequencies for video and data distribution within the United States. For FY 2002, MDS and MMDS stations will pay an annual regulatory fee of $430 per call sign.

    3. Cable Services

    a. Cable Television Systems

    30. This category includes operators of Cable Television Systems, providing or distributing programming or other services to subscribers under part 76 of the Commission's Rules. For FY 2002, Cable Systems will pay a regulatory fee of $.53 per subscriber.[178] Payments for Cable Systems are to be made on a per subscriber basis as of December 31, 2001. Cable Systems should determine their subscriber numbers by calculating the number of single family dwellings, the number of individual households in multiple dwelling units, e.g., apartments, condominiums, mobile home parks, etc., paying at the basic subscriber rate, the number of bulk rate customers and the number of courtesy or fee customers. In order to determine the number of bulk rate subscribers, a system should divide its bulk rate charge by the annual subscription rate for individual households. See FY 1994 Report and Order, Appendix B at paragraph 31.179

    b. Cable Antenna Relay Service

    31. This category includes Cable Antenna Relay Service (CARS) stations used to transmit television and related audio signals, signals of AM and FM Broadcast Stations, and cablecasting from the point of reception to a terminal point from where the signals are distributed to the public by a Cable Television System. For FY 2002, licensees will pay an annual regulatory fee of $65 per CARS license.

    4. Wireline Competition Services

    a. Commercial Microwave (Domestic Public Fixed Radio Service)

    32. This category includes licensees in the Point-to-Point Microwave Radio Service, Local Television Transmission Radio Service, and Digital Electronic Message Service, authorized under part 101 of the Commission's Rules to use microwave frequencies for video and data distribution within the United States. These services are now included in the Microwave category (see paragraph 5 supra).

    b. Interstate Telecommunication Service Providers

    33. This category includes all providers of local and telephone services to end users. Covered services include the interstate and international portion of wireline local exchange service, local and long distance private line services for both voice and data, dedicated and network packet and packet-like services, long distance message telephone services, and other local and toll services. Providers of such services are referred to herein as “interstate telecommunication service providers''.

    34. Interstate service providers include CAP/CLECs, incumbent local exchange carriers (local telephone operating companies), interexchange carriers (long distance telephone companies), local resellers, OSPs (operator service providers that enable customers to make away from home calls and to place calls with alternative billing arrangements), payphone service providers, prepaid card, private service providers, satellite carriers that provide fixed local or message toll services, shared tenant service providers, toll resellers, and other local and other service providers.

    35. To avoid imposing a double payment burden on resellers, we base the regulatory fee on end-user revenues. Interstate telecommunication service providers, including resellers, must submit fee payments based upon their proportionate share of interstate and international end-user revenues for local and toll services. We use the terms end-user revenues, local service and toll service, based on the methodology used for calculating contributions to the Universal Service support mechanisms.[180] Interstate telecommunication service providers do not pay the Common Carrier regulatory fee on revenue from the provision of intrastate local and toll services, wireless monthly and local message services, satellite toll services, carrier's Start Printed Page 46323carrier telecommunications services, customer premises equipment, Internet service and non-telecommunications services. For FY 2002, carriers must multiply their interstate and international revenue from subject local and toll services by the factor 0.00153 to determine the appropriate fee for this category of service. Regulatees may want to use the following worksheet to determine their fee payment:

    Calendar 2001 Revenue Information

    [show amounts in whole dollars]

    NameAmount
    1. Service provided by U.S. carriers that both originates and terminates in foreign points. FCC Form 499-A Line 412 (e)
    2. Interstate end-user revenues from all telecommunications services. FCC Form 499-A Line 420(d)
    3. International end-user revenues from all telecommunications services except international-to-international. FCC Form 499-A Line 420(e)
    4. Total end-user revenues (Sum of Lines 1, 2 and 3) Note: Also enter this number on Block (28A)—“FCC Code 1”.
    5. End-user interstate mobile service monthly and activation charges. FCC Form 499-A Line 409(d)
    6. End-user international mobile service monthly and activation charges. FCC Form 499-A Line 409(e)
    7. End-user interstate mobile service message charges including roaming charges but excluding toll charges.FCC Form 499-A Line 410(d)
    8. End-user international mobile service message charges including roaming charges but excluding toll charges.FCC Form 499-A Line 410(e)
    9. End-user interstate satellite services. FCC Form 499-A Line 416(d)
    10. End-user international satellite services. FCC Form 499-A Line 416(e)
    11. Surcharges on mobile and satellite services identified as recovering universal service contributions and included in Line 403(d) or 403(e) on your FCC Form 499. [Note: You may not include in Block 11 universal service pass-through surcharges applied to local or toll services, nor any surcharges identified as intrastate surcharges.]
    12. Interstate and international revenues from resellers that do not contribute to USF. FCC Form 499-A Line 511(b)
    13. Total excluded end-user revenues. (Sum Lines 5 through 12.) Note: Also enter this number on Block (29A)—“FCC Code 2”.
    14. Total subject revenues. (Line 4 minus Line 13) Note: Also enter this number in Block (25A)—“Quantity”.
    15. Interstate telecommunications service provider fee factor.00153
    16. 2002 Regulatory Fee (Line 14 times Line 15)* Note: Also enter this number in Block (27A)—“Total Fee”
    *You are exempt from filing if the amount on line 16 is less than $10.

    5. International Services

    a. Earth Stations

    36. Very Small Aperture Terminal (VSAT) Earth Stations, equivalent C-Band Earth Stations and antennas, and earth station systems comprised of very small aperture terminals operate in the 12 and 14 GHz bands and provide a variety of communications services to other stations in the network. VSAT systems consist of a network of technically-identical small Fixed-Satellite Earth Stations which often include a larger hub station. VSAT Earth Stations and C-Band Equivalent Earth Stations are authorized pursuant to part 25 of the Commission's Rules. Mobile Satellite Earth Stations, operating pursuant to part 25 of the Commission's Rules under blanket licenses for mobile antennas (transceivers), are smaller than one meter and provide voice or data communications, including position location information for mobile platforms such as cars, buses, or trucks.[181] Fixed-Satellite Transmit/Receive and Transmit-Only Earth Station antennas, authorized or registered under part 25 of the Commission's Rules, are operated by private and public carriers to provide telephone, television, data, and other forms of communications. Included in this category are telemetry, tracking and control (TT&C) earth stations, and earth station uplinks. For FY 2002, licensees of VSATs, Mobile Satellite Earth Stations, and Fixed-Satellite, Transmit/Receive and Transmit-Only Earth Stations will pay a fee of $140 per authorization or registration as well as a separate fee of $140 for each associated Hub Station.

    37. Receive-only earth stations. For FY 2002, there is no regulatory fee for receive-only earth stations.

    b. Space Stations (Geostationary Orbit)

    38. Geostationary Orbit (also referred to as Geosynchronous) Space Stations are domestic and international satellites positioned in orbit to remain approximately fixed relative to the earth. Most are authorized under part 25 of the Commission's Rules to provide communications between satellites and earth stations on a common carrier and/or private carrier basis. In addition, this category includes Direct Broadcast Satellite (DBS) Service which includes space stations authorized under part 100 of the Commission's rules to transmit or re-transmit signals for direct reception by the general public encompassing both individual and community reception. For FY 2002, entities authorized to operate geostationary space stations (including DBS satellites) will be assessed an annual regulatory fee of $99,700 per operational station in orbit. Payment is required for any geostationary satellite that has been launched and tested and is authorized to provide service.

    c. Space Stations (Non-Geostationary Orbit)

    39. Non-Geostationary Orbit Systems (such as Low Earth Orbit (LEO) Systems) are space stations that orbit the earth in non-geosynchronous orbit. They are authorized under part 25 of the Commission's rules to provide communications between satellites and earth stations on a common carrier and/or private carrier basis. For FY 2002, entities authorized to operate Non-Geostationary Orbit Systems (NGSOs) will be assessed an annual regulatory fee of $103,200 per operational system in orbit. Payment is required for any NGSO System that has one or more operational satellites operational. In our FY 1997 Report and Order [182] at paragraph 75 we retained our requirement that licensees of LEOs pay the LEO regulatory fee upon their certification of operation of a single satellite pursuant to section 25.120(d). We require payment of this fee following commencement of operations Start Printed Page 46324of a system's first satellite to insure that we recover our regulatory costs related to LEO systems from licensees of these systems as early as possible so that other regulatees are not burdened with these costs any longer than necessary. Because section 25.120(d) has significant implications beyond regulatory fees (such as whether the entire planned cluster is operational in accordance with the terms and conditions of the license) we previously clarified our definition of an operational LEO satellite to prevent misinterpretation of our intent as follows:

    Licensees of Non-Geostationary Satellite Systems (such as LEOs) are assessed a regulatory fee upon the commencement of operation of a system's first satellite as reported annually pursuant to §§ 25.142(c), 25.143(e), 25.145(g), or upon certification of operation of a single satellite pursuant to § 25.120(d).

    d. International Bearer Circuits

    40. Regulatory fees for International Bearer Circuits are to be paid by facilities-based common carriers (either domestic or international) activating the circuit in any transmission facility for the provision of service to an end user or resale carrier. Payment of the fee for bearer circuits by non-common carrier submarine cable operators is required for circuits sold on an indefeasible right of use (IRU) basis or leased to any customer, including themselves or their affiliates, other than an international common carrier authorized by the Commission to provide U.S. international common carrier services. See FY 1994 Report and Order at 5367 [183] . Payment of the international bearer circuit fee is also required by non-common carrier satellite operators for circuits sold or leased to any customer, including themselves or their affiliates, other than an international common carrier authorized by the Commission to provide U.S. international common carrier services. The fee is based upon active 64 Kbps circuits, or equivalent circuits. Under this formulation, 64 Kbps circuits or their equivalent will be assessed a fee. Equivalent circuits include the 64 Kbps circuit equivalent of larger bit stream circuits. For example, the 64 Kbps circuit equivalent of a 2.048 Mbps (or E-1) circuit is 30 64 Kbps circuits; a 155 Mbps (or STM-1) circuit is 1,890 64 Kbps circuits. Analog circuits such as 3 and 4 kHz circuits used for international service are also included as 64 kbps circuits. However, any derived circuits (circuits derived from 64 Kbps bearer circuits by the use of digital circuit multiplication systems) are not equivalent 64 kbps bearer circuits. Such derived circuits are not subject to payment of a fee. Only the 64 Kbps bearer circuit from which they have been derived will be subject to payment of a fee. Resold circuits are not subject to payment of a fee. For FY 2002, the regulatory fee is $2 for each active 64 Kbps bearer circuit or equivalent. For television channels, we assess fees as follows:

    Analog television channel size in MHz—Number of equivalent 64 Kbps circuits
    36630
    24288
    18240

    e. International Public Fixed

    41. This fee category includes common carriers authorized under part 23 of the Commission's Rules to provide radio communications between the United States and a foreign point via microwave or HF troposcatter systems, other than satellites and satellite earth stations, but not including service between the United States and Mexico and the United States and Canada using frequencies above 72 MHz. For FY 2002, International Public Fixed Radio Service licensees will pay a $1,400 annual regulatory fee per call sign.

    f. International (HF) Broadcast

    42. This category covers International Broadcast Stations licensed under part 73 of the Commission's Rules to operate on frequencies in the 5,950 kHz to 26,100 kHz range to provide service to the general public in foreign countries. For FY 2002, International HF Broadcast Stations will pay an annual regulatory fee of $495 per station license.

    Attachment G—Description of FCC Activities

    Licensing: This activity includes the authorization or licensing of radio stations, telecommunications equipment and radio operators, as well as the authorization of common carrier and other services and facilities. Includes direct organizational FTE and FTE workyear effort provided by staff offices to support policy direction, program development, legal services, and executive direction, as well as support services associated with licensing activities.

    Competition: This activity includes formal inquiries, rulemaking proceedings to establish or amend the Commission's rules and regulations, action on petitions for rulemaking, and requests for rule interpretations or waivers; economic studies and analyses; spectrum planning, modeling, propagation-interference analyses and allocation; and development of equipment standards. Includes direct organizational FTE and FTE workyear effort provided by staff offices to support policy direction, program development, legal services, and executive direction, as well as support services associated with activities to promote competition.

    Enforcement: This activity includes enforcement of the Commission's rules, regulations and authorizations, including investigations, inspections, compliance monitoring, and sanctions of all types. Also includes the receipt and disposition of formal and informal complaints regarding common carrier rates and services, the review and acceptance/rejection of carrier tariffs, and the review, prescription and audit of carrier accounting practices. Includes direct organizational FTE and FTE workyear effort provided by staff offices to support policy direction, program development, legal services, and executive direction, as well as support services associated with enforcement activities.

    Consumer Information Services: This activity includes the publication and dissemination of Commission decisions and actions, and related activities; public reference and library services; the duplication and dissemination of Commission records and databases; the receipt and disposition of public inquiries; consumer, small business, and public assistance; and public affairs and media relations. Includes direct organizational FTE and FTE workyear effort provided by staff offices to support policy direction, program development, legal services, and executive direction, as well as support services associated with consumer information activities.

    Spectrum Management: This activity includes management of the electromagnetic spectrum as mandated by the Communications Act of 1934, as amended. Spectrum management includes the structure and processes for allocating, allotting, assigning, and licensing this scarce resource to the private sector and state and local governments in a way that promotes competition while ensuring that the public interest is best served. In order to manage spectrum in both an efficient and equitable manner, the Commission prepares economic, technical and engineering studies, coordinates with federal agencies, and represents U.S. industry in international forums. This Start Printed Page 46325activity includes direct organizational FTEs and FTE workyear efforts provided by staff offices that support policy direction, program development, legal services, and executive direction, as well as support services associated with spectrum management activities.

    Attachment H—Factors, Measurements and Calculations That Go Into Determining Station Signal Contours and Associated Population Coverages

    AM Stations

    Specific information on each day tower, including field ratio, phasing, spacing and orientation was retrieved, as well as the theoretical pattern RMS figure (mV/m @ 1 km) for the antenna system. The standard, or modified standard if pertinent, horizontal plane radiation pattern was calculated using techniques and methods specified in §§ 73.150 and 73.152 of the Commission's rules.[184] Radiation values were calculated for each of 72 radials around the transmitter site (every 5 degrees of azimuth). Next, estimated soil conductivity data was retrieved from a database representing the information in FCC Figure M3. Using the calculated horizontal radiation values, and the retrieved soil conductivity data, the distance to the city grade (5 mV/m) contour was predicted for each of the 72 radials. The resulting distance to city grade contours were used to form a geographical polygon. Population counting was accomplished by determining which 1990 block centroids were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted city grade coverage area.

    FM Stations

    The maximum of the horizontal and vertical HAAT (m) and ERP (kW) was used. Where the antenna HAMSL was available, it was used in lieu of the overall HAAT figure to calculate specific HAAT figures for each of 72 radials under study. Any available directional pattern information was applied as well, to produce a radial-specific ERP figure. The HAAT and ERP figures were used in conjunction with the propagation curves specified in § 73.313 of the Commission's rules to predict the distance to the city grade (70 dBuV/m or 3.17 mV/m) contour for each of the 72 radials.[185] The resulting distance to city grade contours were used to form a geographical polygon. Population counting was accomplished by determining which 1990 block centroids were contained in the polygon. The sum of the population figures for all enclosed blocks represents the total population for the predicted city grade coverage area.

    Attachment I

    Parties Filing Comments on the Notice of Proposed Rulemaking

    Steven Karty

    William J. Hanrahan

    AT&T Corporation (“AT&T”)

    American Association of Paging Carriers (“AAPC”)

    Blooston, Mordkofsky, Dickens, Duffy & Prendergast (“BMDDP”)

    Allied Personal Communications Industries Association of California (“Allied”)

    Parties Filing Reply Comments

    Verizon, Inc. (“Verizon”)

    American Mobile Telecommunications Association, Inc. (“AMTA”)

    Parties Filing a Notice of Oral Ex Parte Presentation

    Arch Wireless, Inc. (“Arch”)

    Filed by Wilkinson, Barker, Knauer, LLP

    Other Entities Present at the Meeting:

    American Association of Paging Carriers (“AAPC”)

    Law Firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast (“BMDDP”)

    Arch Wireless, Inc. (“Arch”)

    Attachment J—AM and FM Radio Regulatory Fees

    The List of regulatory fees is available from the FCC Public Reference Room, CY-A257, 445 12th St. SW, Washington, DC 20554.

    Statement of Commissioner Michael Copps, Concurring

    Re: Assessment and Collection of Regulatory Fees for Fiscal Year 2002

    I am concerned that the Commission does not address when or how it would adjust the regulatory fees to take into account changes to the cost of regulating various services. The paging industry argues that it faces a 60 percent per unit increase in regulatory fees this year due to a declining subscriber base, notwithstanding reduced regulatory resources devoted to paging. Today's order concludes that the paging industry has not demonstrated that an increase from $.05 to $.08 per unit per year would harm the industry as a whole, but fails to address the underlying concern about revisions to the Commission's methodology. I take some comfort, however, that the Commission plans to have in place a new accounting system in the near future, and that, in the meantime, our rules expressly provide that individual providers may seek reduction or deferral of regulatory fees due to financial hardship.

    End Supplemental Information

    Footnotes

    3.  Assessment and Collection of Regulatory Fees for Fiscal Year 2001, 66 FR 36177 (2001).

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    13.  It is important to note also that the required increase in regulatory fee payments of approximately 9.3 percent in FY 2002 will not fall equally on all payers because payment units have changed in several services. When the number of payment units in a service increases from one year to another, fees do not have to rise as much as they would if payment units had decreased or remained stable. Declining payment units have the opposite effect on fees.

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    15.  Comments submitted by Allied Personal Communications Industries Association of California on April 23, 2002, page 4.

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    16.  Ibid.

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    17.  Comments submitted on April 23, 2002 by the American Association of Paging Carriers (page 2), and the law firm of Blooston, Mordkofsky, Dickens, Duffy & Prendergast (page 3).

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    18.  American Association of Paging Carriers (pages 2, 4-6).

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    19.  Blooston, Mordkofsky, Dickens, Duffy & Prendergast, pages 1-2.

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    20.  Ibid., pages 2-4.

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    21.  Ibid., pages 5-6, 8-9.

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    22.  Notice of Oral Ex Parte Presentation, submitted on May 17, 2002.

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    23.  Comments submitted by AT&T on April 23, 2002, page 4.

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    24.  Ibid, page 5.

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    25.  Ibid, page 7.

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    26.  But see Verizon Reply Comments submitted on May 3, 2002.

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    27.  See Federal-State Joint Board on Universal Service, 1998 Biennial Regulatory Review—Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service, North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms, Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990, Administration of the North American Plan and North American Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization, Telephone Number Portability, Trust-in-Billing and Billing Format, CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-116, 98-170, Further Notice of Proposed Rulemaking and Order, paragraph 82 (released February 26, 2002) (Universal Service Contribution Methodology Further Notice).

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    28.  Applicants for new, renewal and reinstatement licenses in the following services will be required to pay their regulatory fees in advance: Land Mobile Services, Microwave Services, Marine (Ship) Service, Marine (Coast) Service, Private Land Mobile (Other) Services, Aviation (Aircraft) Service, Aviation (Ground) Service, General Mobile Radio Service (GMRS), 218-219 MHz Service (if any applications should be filed), Rural Radio Service, and Amateur Vanity Call Signs.

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    29.  Cable system operators are to compute their subscribers as follows: Number of single family dwellings + number of individual households in multiple dwelling unit (apartments, condominiums, mobile home parks, etc.) paying at the basic subscriber rate + bulk rate customers + courtesy and free service. Note: Bulk-Rate Customers = Total annual bulk-rate charge divided by basic annual subscription rate for individual households. Cable system operators may base their count on “a typical day in the last full week” of December 2001, rather than on a count as of December 31, 2001.

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    30.  66 FR 47890 (September 14, 2001).

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    32. -35.  5 U.S.C. 603. The RFA, 5 U.S.C. 601 et seq., has been amended by the Contract With America Advancement Act of 1996, Public Law No. 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).

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    36.  67 FR 17325 (April 10, 2002).

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    40.  5 U.S.C. 601(3) (incorporating by reference the definition of “small business concern” in 15 U.S.C. 632). Pursuant to the RFA, 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.” 5 U.S.C. 601(3).

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    41.  Small Business Act, 15 U.S.C. 632 (1996).

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    43.  1992 Economic Census, U.S. Bureau of the Census, Table 6 (special tabulation of data under contract to Office of Advocacy of the U.S. Small Business Administration).

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    46.  U.S. Dept. of Commerce, Bureau of the Census, “1992 Census of Governments.”

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    48.  13 CFR 121.201, North American Industry Classification System (NAICS) codes 51321 and 51322.

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    49.  1992 Economic Census Industry and Enterprise Receipts Size Report, Table 2D, NAICS codes 51321 and 51322 (U.S. Bureau of the Census data under contract to the Office of Advocacy of the U.S. Small Business Administration).

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    50.  47 CFR 76.901(e). The Commission developed this definition based on its determination that a small cable system operator is one with annual revenues of $100 million or less. Implementation of Sections of the 1992 Cable Act: Rate Regulation, Sixth Report and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393 (1995), 60 FR 10534 (Feb. 27, 1995).

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    51.  Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 1996 (based on figures for Dec. 30, 1995).

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    53.  Annual Assessment of the Status on Competition in the Market for the Delivery of Video Programming, CS Docket No. 00-132, Seventh Annual Report, FCC 01-1 (released January 8, 2001), Table C-1.

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    55.  FCC Announces New Subscriber Count for the Definition of Small Cable Operator, Public Notice, DA-01-0158 (released January 24, 2001).

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    56.  We do receive such information on a case-by-case basis only if a cable operator appeals a local franchise authority's finding that the operator does not qualify as a small cable operator pursuant to § 76.1403(b) of the Commission's rules. See 47 CFR 76.1403(d).

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    57.  Direct Broadcast Services (DBS) are discussed with the international services, infra.

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    58.  Multipoint Distribution Services (MDS) are discussed with the mass media services, infra.

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    59.  FCC, Common Carrier Bureau, Industry Analysis Division, Telecommunications Provider Locator, Table 1 (November 2001).

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    60.  FCC, Telecommunications Provider Locator at Table 1.

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    61.  See 47 U.S.C. 251(h) (defining “incumbent local exchange carrier”).

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    63.  Letter from Jere W. Glover, Chief Counsel for Advocacy, SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small Business Act contains a definition of “small business concern,” which the RFA incorporates into its own definition of “small business.” See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 601(3) (RFA). SBA regulations interpret “small business concern” to include the concept of dominance on a national basis. 13 CFR 121.102(b). Since 1996, out of an abundance of caution, the Commission has included small incumbent LECs in its regulatory flexibility analyses. See, e.g., Implementation of the Local Competition Provisions of the Telecommunications Act of 1996, CC Docket, 96-98, First Report and Order, 11 FCC Rcd 15499, 16144-45 (1996), 61 FR 45476 (Aug. 29, 1996).

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    64.  U.S. Department of Commerce, Bureau of the Census, 1992 Census of Transportation, Communications, and Utilities: Establishment and Firm Size, at Firm Size 1-123 (1995) (1992 Census).

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    66.  1992 Census, supra, at Firm Size 1-123.

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    67.  13 CFR 121.201, NAICS codes 51331, 51333, and 51334.

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    68.  13 CFR 121.201, NAICS codes 51331, 51333, and 51334.

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    69.  See Telecommunications Provider Locator at Table 1.

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    70.  Telecommunications Provider Locator at Table 1. The total for resellers includes both toll resellers and local resellers.

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    71.  An exception is the Direct Broadcast Satellite (DBS) Service, infra.

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    72.  13 CFR 121.201, NAICS codes 48531, 513322, 51334, and 51339.

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    73.  1992 Economic Census Industry and Enterprise Receipts Size Report, Table 2D, NAICS codes 48531, 513322, 51334, and 513391 (U.S. Bureau of the Census data under contract to the Office of Advocacy of the U.S. Small Business Administration).

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    74.  13 CFR 121.201, NAICS codes 51321 and 51322.

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    75.  13 CFR 121.201, NAICS codes 51321 and 51322.

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    76.  While we tentatively believe that the SBA's definition of “small business” greatly overstates the number of radio and television broadcast stations that are small businesses and is not suitable for purposes of determining the impact of the proposals on small television and radio stations, for purposes of this Report and Order we utilize the SBA's definition in determining the number of small businesses to which the proposed rules would apply. We reserve the right to adopt, in the future, a more suitable definition of “small business” as applied to radio and television broadcast stations or other entities subject to the proposed rules in this Report and Order, and to consider further the issue of the number of small entities that are radio and television broadcasters or other small media entities. See Report and Order in MM Docket No. 93-48 (Children's Television Programming), 11 FCC Rcd 10660, 10737-38 (1996), 61 FR 43981 (Aug. 27, 1996), citing 5 U.S.C. 601(3).

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    77.  13 CFR 121.201, NAICS code 51312.

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    78.  Economics and Statistics Administration, Bureau of Census, U.S. Department of Commerce, 1992 Census of Transportation, Communications and Utilities, Establishment and Firm Size, Series UC92-S-1, Appendix A-9 (1995) (1992 Census, Series UC92-S-1).

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    79.  Id.; see Executive Office of the President, Office of Management and Budget, Standard Industrial Classification Manual (1987), at 283, which describes “Television Broadcasting Stations” (SIC code 4833, now NAICS code 51312) as: Establishments primarily engaged in broadcasting visual programs by television to the public, except cable and other pay television services. Included in this industry are commercial, religious, educational and other television stations. Also included here are establishments primarily engaged in television broadcasting and which produce taped television program materials.

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    80.  1992 Census, Series UC92-S-1, at Appendix A-9.

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    81.  Id., NAICS code 51211 (Motion Picture and Video Tape Production); NAICS 51229 (Theatrical Producers and Miscellaneous Theatrical Services) (producers of live radio and television programs).

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    82.  FCC News Release No. 31327 (January 13, 1993); 1992 Census, Series UC92-S-1, at Appendix A-9.

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    83.  FCC News Release, “Broadcast Station Totals as of September 30, 2001.”

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    84.  A census to determine the estimated number of Communications establishments is performed every five years, in years ending with a “2” or “7.” See 1992 Census, Series UC92-S-1, at III.

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    85.  The amount of $10 million was used to estimate the number of small business establishments because the relevant Census categories stopped at $9,999,999 and began at $10,000,000. No category for $10.5 million existed. Thus, the number is as accurate as it is possible to calculate with the available information.

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    86.  13 CFR 121.201, NAICS codes 513111 and 513112.

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    87.  1992 Census, Series UC92-S-1, at Appendix A-9.

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    91.  The Census Bureau counts radio stations located at the same facility as one establishment. Therefore, each co-located AM/FM combination counts as one establishment.

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    92.  FCC News Release, No. 31327 (Jan. 13, 1993).

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    93.  FCC News Release, “Broadcast Station Totals as of September 30, 2001.”

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    94.  We use an estimated figure of 77 percent (from 1992) of TV stations operating at less than $10 million and apply it to the 2000 total of 1,663 TV stations to arrive at 1,281 stations categorized as small businesses.

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    95.  We use the 96% figure of radio station establishments with less than $5 million revenue from data presented in the year 2000 estimate (FCC News Release, September 30, 2000) and apply it to the 12,717 individual station count to arrive at 12,209 individual stations as small businesses.

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    96.  FCC News Release, “Broadcast Station Totals as of September 30, 2001.”

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    97.  13 CFR 121.201, NAICS codes 513111 and 513112.

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    99.  For purposes of this item, MDS includes single channel Multipoint Distribution Service (MDS), Local Multipoint Distribution Service (LMDS), and the Multichannel Multipoint Distribution Service (MMDS). See 66 FR 36177.

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    100.  Amendment of Parts 21 and 74 to Enable Multipoint Distribution Service and Instructional Television Fixed Service Licensees to Engage in Fixed Two-Way Transmissions, 13 FCC Rcd 19112 (1998), recon., 14 FCC Rcd 12764 (1999), further recon., 15 FCC Rcd 14566 (2000).

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    102.  Amendment of Parts 21 and 74 of the Commission's Rules with Regard to Filing Procedures in the Multipoint Distribution Service and in the Instructional Television Fixed Service and Implementation of Section 309(j) of the Communications Act—Competitive Bidding, 10 FCC Rcd 9589, 9670 (1995), 60 FR 36524 (July 17, 1995).

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    103.  Basic Trading Areas (BTAs) were designed by Rand McNally and are the geographic areas by which MDS was auctioned and authorized. See id. At 9608.

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    104.  47 U.S.C. 309(j). (Hundreds of stations were licensed to incumbent MDS licensees prior to implementation of Section 309(j) of the Communications Act of 1934, 47 U.S.C. Section 309(j). For these pre-auction licenses, the applicable standard is SBA's small business size standard for “other telecommunications” (annual receipts of $11 million or less). See 13 CFR 121.201.

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    105.  13 CFR 121.201, NAICS code 513322.

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    106.  1992 Census, Series UC92-S-1, at Table 5, NAICS code 513322.

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    107.  Telecommunications Provider Locater, Table 1 (November 2001).

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    108.  13 CFR 121.201, NAICS code 513322.

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    109.  U.S. Bureau of the Census, U.S. Department of Commerce, 1992 Census of Transportation, Communications, and Utilities, UC92-S-1, Subject Series, Establishment and Firm Size, Table 5, Employment Size of Firms; 1992, NAICS codes 513321, 513322, and 51333.

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    110.  220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-70, at paragraphs 291-295 (1997).

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    111.  220 MHz Third Report and Order, 12 FCC Rcd at 11068-69, paragraph 291.

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    112.  See Letter to D. Phython, Chief, Wireless Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA (January 6, 1998).

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    113.  See generally Public Notice, “220 MHz Service Auction Closes,” Public Notice, 14 FCC Rcd 605 (1998).

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    114.  Public Notice, “FCC Announces It is Prepared to Grant 654 Phase II 220 MHz Licenses After Final Payment is Made,” Public Notice, 14 FCC Rcd 1085 (1999).

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    115.  “Phase II 220 MHz Service Spectrum Auction Closes”, Public Notice, 14 FCC Rcd 11218 (1999).

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    116.  See Service Rules for the 746-764 MHz Bands, and Revisions to Part 27 of the Commission's Rules, WT Docket No. 99-168, Second Report and Order, 65 FR 17599 (April 4, 2000).

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    117.  See generally Public Notice, “220 MHz Service Auction Closes,” Report No. WT 98-36 (Wireless Telecommunications Bureau, October 23, 1998).

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    118.  “700 MHz Guard Bands Auction Closes,” Public Notice, DA 01-478 (rel. February 22, 2001).

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    119.  220 MHz Third Report and Order, 62 FR 16004 (April 3, 1997), at paragraphs 291-295.

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    120.  700 MHz Guard Band Auction Closes,” Public Notice, 15 FCC Rcd 18026 (2000).

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    121.  “Revision of Part 22 and Part 90 of the Commission's Rules to Facilitate Future Development of Paging Systems,” Memorandum Opinion and Order on Reconsideration and Third Report and Order, 14 FCC Rcd 10030, at paragraph 98-107 (1999).

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    122.  “Revision of Part 22 and Part 90 of the Commission's Rules to Facilitate Future Development of Paging Systems,” Memorandum Opinion and Order on Reconsideration and Third Report and Order, 14 FCC Rcd 10030, at paragraph 98 (1999).

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    123.  See Telecommunications Provider Locater at Table 1 (November 2001).

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    124.  See generally “929 and 931 MHz Paging Auction Closes,” Public Notice, 15 FCC Rcd 4858 (2000).

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    125.  See Amendment of Parts 20 and 24 of the Commission's Rules—Broadband PCS Competitive Bidding and the Commercial Mobile Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket No. 96-59 Sections 60 (released June 24, 1996), 61 FR 33859 (July 1, 1996).

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    126.  See, e.g., Implementation of Section 309(j) of the Communications Act—Competitive Bidding, PP Docket No. 93-253, Fifth Report and Order, 9 FCC Rcd 5532, 5581-84 (1994).

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    127.  FCC News, Broadband PCS, D, E and F Block Auction Closes, No. 71744 (released January 14, 1997).

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    128.  See Amendment of the Commission's Rules Regarding Installment Payment Financing for Personal Communications Services (PCS) Licenses, Fourth Report and Order, 13 FCC Rcd 15743 at 15767-68, paragraphs 45-46 (1998).

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    129.  See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division from A. Alvarez, Administrator, SBA (December 2, 1998).

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    130.  In the Matter of Amendment of the Commission's Rules to Establish New Personal Communications Services, Narrowband PCS, Docket No. ET 92-100, Docket No. PP93-253, Second Report and Order and Second Further Notice of Proposed Rulemaking, 65 FR 35875 (June 6, 2000).

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    131.  See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division from A. Alvarez, Administrator, SBA (December 2, 1998).

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    132.  The service is defined in § 22.99 of the Commission's Rules, 47 CFR 22.99.

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    133.  BETRS is defined in §§ 22.757 and 22.759 of the Commission's Rules, 47 CFR 22.757 and 22.759.

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    134.  13 CFR 121.201, NAICS codes 513321, 513322, and 51333.

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    135.  The service is defined in § 22.99 of the Commission's Rules, 47 CFR 22.99.

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    136.  13 CFR 121.201, NAICS codes 513321, 513322, and 51333.

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    138.  See Letter to Thomas J. Sugrue, Chief, Wireless Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA (August 10, 1999).

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    139.  See Letter to Daniel B. Phython, Chief, Wireless Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA (October 27, 1997).

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    140.  Id.

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    141.  Federal Communications Commission, 60th Annual Report, Fiscal Year 1994, at paragraph 116.

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    142.  13 CFR 121.201, NAICS codes 513321, 513322, and 51333.

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    143.  47 CFR 101 et seq. (formerly, part 21 of the Commission's Rules).

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    144.  Persons eligible under parts 80 and 90 of the Commission's rules can use Private Operational-Fixed Microwave services. See 47 CFR parts 80 and 90. Stations in this service are called operational-fixed to distinguish them from common carrier and public fixed stations. Only the licensee may use the operational-fixed station, and only for communications related to the licensee's commercial, industrial, or safety operations.

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    145.  Auxiliary Microwave Service is governed by part 74 of Title 47 of the Commission's Rules. See 47 CFR 74 et seq. Available to licensees of broadcast stations and to broadcast and cable network entities, broadcast auxiliary microwave stations are used for relaying broadcast television signals from the studio to the transmitter, or between two points such as a main studio and an auxiliary studio. The service also includes mobile TV pickups, which relay signals from a remote location back to the studio.

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    146.  13 CFR 121.201, NAICS codes 513321, 513322, 51333.

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    147.  With the exception of the special emergency service, these services are governed by Subpart B of part 90 of the Commission's Rules, 47 CFR 90.15 through 90.27. The police service includes 26,608 licensees that serve state, county, and municipal enforcement through telephony (voice), telegraphy (code) and teletype and facsimile (printed material). The fire radio service includes 22,677 licensees comprised of private volunteer or professional fire companies as well as units under governmental control. The local government service that is presently comprised of 40,512 licensees that are state, county, or municipal entities that use the radio for official purposes not covered by other public safety services. There are 7,325 licensees within the forestry service which is comprised of licensees from state departments of conservation and private forest organizations who set up communications networks among fire lookout towers and ground crews. The 9,480 state and local governments are licensed to highway maintenance service provide emergency and routine communications to aid other public safety services to keep main roads safe for vehicular traffic. The 1,460 licensees in the Emergency Medical Radio Service (EMRS) use the 39 channels allocated to this service for emergency medical service communications related to the delivery of emergency medical treatment. 47 CFR 90.15 through 90.27. The 19,478 licensees in the special emergency service include medical services, rescue organizations, veterinarians, handicapped persons, disaster relief organizations, school buses, beach patrols, establishments in isolated areas, communications standby facilities, and emergency repair of public communications facilities. 47 CFR 90.33 through 90.55.

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    150.  Licensees in the Citizens Band (CB) Radio Service, General Mobile Radio Service (GMRS), Radio Control (R/C) Radio Service and Family Radio Service (FRS) are governed by Subpart D, Subpart A, Subpart C, and Subpart B, respectively, of part 95 of the Commission's Rules. 47 CFR 95.401 through 95.428; 95.1 through 95.181; 95.201 through 95.225; 47 CFR 95.191 through 95.194.

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    151.  This service is governed by subpart I of part 22 of the Commission's Rules. See 47 CFR 22.1001 through 22.1037.

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    152.  See Letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division from A. Alvarez, Administrator, SBA (December 2, 1998).

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    153.  See In the Matter of Amendment of the Commission's Rules Regarding the 37.0-38.6 GHz and 38.6-40.0 GHz Band, Report and Order, 12 FCC Rcd 18600 (1997).

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    154.  Id.

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    155.  See Local Multipoint Distribution Service, Second Report and Order, 62 FR 23148, April 29, 1997.

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    156.  Id.

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    157.  See Letter to Daniel Phythyon, Chief, Wireless Telecommunications Bureau (FCC) from A. Alvarez, Administrator, SBA (January 6, 1998).

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    158.  Implementation of Section 309(j) of the Communications Act—Competitive Bidding, PP WT Docket No. 93-253, Fourth Report and Order, 59 FR 24947 (May 13, 1994).

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    159.  In the Matter of Amendment of Part 95 of the Commission's Rules to Provide Regulatory Flexibility in the 218-219 MHz Service, WT Docket No. 98-169, Report and Order and Memorandum Opinion and Order, 64 FR 59656 (November 3, 1999).

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    160.  Amendment of Part 95 of the Commission's Rules to Provide Regulatory Flexibility in the 218-219 MHz Service, Report and Order and Memorandum Opinion and Order, 64 FR 59656 (1999).

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    161.  The following categories are exempt from the Commission's Schedule of Regulatory Fees: Amateur radio licensees (except applicants for vanity call signs) and operators in other non-licensed services (e.g., Personal Radio, part 15, ship and aircraft). Governments and non-profit (exempt under section 501(c) of the Internal Revenue Code) entities are exempt from payment of regulatory fees and need not submit payment. Non-commercial educational broadcast licensees are exempt from regulatory fees as are licensees of auxiliary broadcast services such as low power auxiliary stations, television auxiliary service stations, remote pickup stations and aural broadcast auxiliary stations where such licenses are used in conjunction with commonly owned non-commercial educational stations. Emergency Alert System licenses for auxiliary service facilities are also exempt as are instructional television fixed service licensees. Regulatory fees are automatically waived for the licensee of any translator station that: (1) is not licensed to, in whole or in part, and does not have common ownership with, the licensee of a commercial broadcast station; (2) does not derive income from advertising; and (3) is dependent on subscriptions or contributions from members of the community served for support. Receive only earth station permittees are exempt from payment of regulatory fees. A regulatee will be relieved of its fee payment requirement if its total fee due, including all categories of fees for which payment is due by the entity, amounts to less than $10.

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    164.  Public Law 104-134, 110 Stat. 1321 (1996).

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    172.  This category only applies to licensees of shared-use private 220-222 MHz and 470 MHz and above in the Specialized Mobile Radio (SMR) service who have elected not to change to the Commercial Mobile Radio Service (CMRS). Those who have elected to change to the CMRS are referred to paragraph 14 of this Attachment.

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    173.  Although this fee category includes licenses with ten-year terms, the estimated volume of ten-year license applications in FY 2000 is less than one-tenth of one percent and, therefore, is statistically insignificant.

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    174.  Section 9(h) exempts “amateur radio operator licenses under part 97 of the Commission's rules (47 CFR part 97)” from the requirement. However, section 9(g)'s fee schedule explicitly includes “Amateur vanity call signs” as a category subject to the payment of a regulatory fee.

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    175.  This category does not include licensees of private shared-use 220 MHz and 470 MHz and above in the Specialized Mobile Radio (SMR) service who have elected to remain non-commercial. Those who have elected not to change to the Commercial Mobile Radio Service (CMRS) are referred to paragraph 4 of this Attachment.

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    176.  The Commission acknowledges that certain stations operating in Puerto Rico and Guam have been assigned a higher level station class than would be expected if the station were located on the mainland. Although this results in a higher regulatory fee, we believe that the increased interference protection associated with the higher station class is necessary and justifies the fee.

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    177.  See 10 FCC Rcd 12759, 12762 (1995).

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    178.  Cable systems are to pay their regulatory fees on a per subscriber basis rather than per 1,000 subscribers as set forth in the statutory fee schedule. See FY 1994 Report and Order at paragraph 100.

    179.  59 FR 30984 (June 16, 1994).

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    180.  See 1998 Biennial Regulatory Review—Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Services, North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms, Report and Order, FCC 99-175, CC Docket No. 98-171 (rel. July 14, 1999), 64 FR 41320 (Jul. 30, 1999) (Contributor Reporting Requirements Order).

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    181.  Mobile earth stations are hand-held or vehicle-based units capable of operation while the operator or vehicle is in motion. In contrast, transportable units are moved to a fixed location and ooperate in a stationary (fixed) mode. Both are assessed the same regulatory fee for FY 2001.

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    182.  65 FR 37408 (July 11, 1997).

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    183.  59 FR 30984 (june 16, 1994).

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    [FR Doc. 02-17308 Filed 7-11-02; 8:45 am]

    BILLING CODE 6712-02-P

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Document Information

Effective Date:
9/9/2002
Published:
07/12/2002
Department:
Federal Communications Commission
Entry Type:
Rule
Action:
Final rule.
Document Number:
02-17308
Dates:
September 9, 2002.
Pages:
46297-46325 (29 pages)
Docket Numbers:
MD Docket No. 02-64, FCC 02-205
Topics:
Administrative practice and procedure, Communications common carriers, Radio, Telecommunications, Television
PDF File:
02-17308.pdf
CFR: (10)
47 CFR 1.1110
47 CFR 1.1113
47 CFR 1.1152
47 CFR 1.1153
47 CFR 1.1154
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