June 20, 1994 Common Carrier Regulatory Fees The Federal Communications Commission issues this Public Notice in order to provide information concerning the payment of regulatory fees in 1994. If you hold authorizations in any of the common carrier services, excluding space stations and earth stations, you should carefully review this Public Notice. A separate Public Notice for space station and earth station licensees is available. WHO MUST PAY REGULATORY FEES IN 1994 Most licensees and other entities regulated by the Commission must pay regulatory fees in 1994. This Public Notice concerns only the following Common Carrier regulatees: interexchange carriers, local exchange carriers, competitive access providers, cellular and public mobile (Part 22) licensees, domestic public fixed radio (Part 21) licensees, international public fixed radio (Part 23) licensees and providers of international bearer circuits. WHY THE COMMISSION MUST COLLECT NEW FEES The new requirement to collect annual regulatory fees was contained in Public Law 103-66, "The Omnibus Budget Reconciliation Act of 1993." These new regulatory fees, which are likely to change each fiscal year, will be used to offset costs associated with the Commission's enforcement, public service, international and policy and rulemaking activities. The new fees are in addition to any application processing fees associated with obtaining a license or other authorization from the Commission. WHEN FEES WILL BE DUE Fee payment due dates vary by category within the common carrier services. Payments must be received by the Commission by the dates shown below in order to avoid a 25% late penalty. When paying for fees in more than one category below, the consolidated fee payment is due on the latest date the individual fee payment would be due. REGULATORY FEE DUE DATES & PAYMENT AMOUNTS BY CATEGORY COMMON CARRIER CATEGORY DUE DATE REGULATORY FEE PAYMENT Domestic public fixed radio licensees (Part 21) August 5, 1994 $55 per call sign International public fixed radio licensees (Part 23) August 5, 1994 $110 per call sign Interexchange carriers August 17, 1994 $0.06 per presubscribed access line Local exchange carriers August 17, 1994 $0.06 per access line Competitive access providers August 17, 1994 $0.06 per subscriber International bearer circuit providers August 17, 1994 $2.20 per active 64 KB circuit or equivalent Cellular radio licensees (Part 22) August 26, 1994 $0.06 per subscriber Public mobile radio licensees (Part 22) August 26, 1994 $0.06 per subscriber FCC Form 159 Regulatory fee payments must be accompanied by FCC Form 159 ("FCC Remittance Advice"). A copy of this form, with specific instructions, is attached to this Public Notice. Please see, "Special Instructions for Completing FCC Forms 159 & 159-C" for detailed information on how to correctly complete these Forms. WHERE TO SEND REGULATORY FEE PAYMENTS All regulatory fee payments must be sent to the following address: Federal Communications Commission Regulatory Fees P.O. Box 358835 Pittsburgh, PA 15251-5835 METHOD OF PAYMENT Regulatory fee payments may be made by check or money order. Payments may also be made by credit card (Visa or Mastercard only). When paying by credit card, please make sure you sign the appropriate block of Form 159. Payments may also be made electronically provided prior approval has been obtained from the Commission. Contact Thomas M. Holleran at (202) 418-1925 for prior approval. In its Report and Order the Commission noted that "NECA has proposed to process regulatory fees on behalf of its pooling exchange carriers and to submit their consolidated fees to our lockbox bank in a single instrument of payment." The Commission has no objection to NECA's submission of the fee on behalf of its pooling exchange carriers or others. However, we remind entities subject to the payment of a regulatory fee that the regulatee, not an agent, such as NECA, is responsible for ensuring that the payment is made and that it is subject to penalty for failure to submit the entire fee due in a timely manner. LEC's will be expected to pay their fees based on the number of access lines as determined by NECA. In case of a dispute between a carrier and NECA concerning the carrier's line count as of December 31, 1993, NECA will certify its calculation of the carrier's line count and the basis for its calculation. We encourage arrangements to consolidate a number of regulatory fee payments for different entities into a single payment instrument made by a single payee. We recognize the benefits to be gained by all the parties involved. Notwithstanding the published schedule of payment due dates, consolidation of 100 or more regulatory fees due from different entities by a single payee will be due on September 2, 1994. Entities participating in such consolidated payment arrangements that are eligible, and choose, to pay by installment, should pay one-half of the regulatory fee eligible for installment payment by September 2, 1994. The second installment payment will then be due September 30, 1994. NOTE: Multiple fee payments may be made with one payment instrument. Payors who will be making a single payment for a significant number of entities and wish to submit automated data submissions in lieu of a large number of FCC Forms 159-C ("Advice Continuation Sheets") should contact Thomas M. Holleran at (202) 418-1925 at least four weeks prior to the payment due date. INSTALLMENT PAYMENTS Interexchange carriers are permitted to make installment payments if their total regulatory fee exceeds $500,000. Local exchange carriers are permitted to make installment payments if their total regulatory fee exceeds $700,000. Fee payments for other than interexchange or local exchange carriers access lines cannot be counted toward the respective installment threshold. Nor can competitive access providers, providers of international bearer circuits and licensees of any public fixed or mobile service pay their fees by installment. Eligible carriers choosing to make installment payments must pay one- half of their total fee by August 17, 1994. The second installment payment is due no later than September 14, 1994. Entities participating in consolidated payment arrangements that are eligible, and elect, to pay by installment should note the different due dates for their installment payments (see "Method of Payment" above). COMPLIANCE Licensees are solely responsible for accurately accounting for all licenses and for paying proper regulatory fees. Any omission or payment deficiency can result in a 25% monetary penalty, dismissal of pending actions, and/or revocation of any authorization. Additionally, the Commission intends to invoke its authority under the Debt Collection Act against any licensee failing to meet its regulatory fee payment obligations. WAIVERS, REDUCTIONS AND DEFERMENTS OF REGULATORY FEES The Commission will consider requests for waivers, reductions or deferments of regulatory fees, in extraordinary and compelling circumstances only, upon a showing that such action overrides the public interest in reimbursing the Commission for its regulatory costs. Timely submission of the appropriate regulatory fee must accompany requests for waivers or reductions. This will ensure efficient collection in situations where a waiver or reduction is not warranted and will allow the requestor to avoid a 25% late-payment penalty if its request is denied. The regulatory fee would be refunded later if the request is granted. Only in exceptional or compelling instances (where payment of the regulatory fee along with the waiver or reduction request could result in the reduction of service to a community or other financial hardship to the licensee), will the Commission accept a petition to defer payment along with a waiver or reduction request. ADDITIONAL INFORMATION For information on application fees for common carrier services, or for information on application and regulatory fees for mass media, cable television, engineering and technology, field operations or private radio services, the Commission has prepared a number of informative Fee Filing Guides. These Guides are available from the Commission's Public Service Division, from its various field office locations and can be downloaded from the Internet (ftp@fcc.gov). For additional information, please contact the Public Service Division's Fees Hotline at (202) 632-FEES (3337), or write to: Federal Communications Commission, ATTN: Public Service Division, 1919 M Street, N.W., Washington, D.C., 20554. FILING PROCEDURES FOR CARRIERS & MOBILE SERVICE PROVIDERS Who Must Pay: Interexchange carriers (long distance telephone companies), local exchange carriers (local telephone operating companies), competitive access providers (companies other than the traditional local telephone companies that provide interstate access services to long distance carriers and other companies), cellular providers (common carriers providing cellular radio service to the public) and mobile service licensees (common carriers authorized, under Part 22 of our Rules, to offer land-based or air-to-ground mobile telephone or paging services to the public). Governments and nonprofit (exempt under section 501 of the Internal Revenue Code) carriers and licensees are exempt from paying regulatory fees and should not submit payment, but may be asked to submit a current IRS Determination Letter documenting its nonprofit status, or a certification of governmental authority. Fee Requirement: COMMON CARRIER CATEGORY REGULATORY FEE PAYMENT TYPE CODE Interexchange Carriers $0.06 per presubscribed access line CDIN Local Exchange Carriers $0.06 per access line CDXN Competitive Access Providers $0.06 per subscriber CDPN Cellular Radio Licensees $0.06 per subscriber CDCN Public Mobile Service Licensees (Part 22) $0.06 per subscriber, CDMN Access lines for Local Exchange carriers should be based upon the number of working loops as described in section 36.611 of our Rules, governing the submission of Information to the National Exchange Carrier Association (NECA). Presubscribed lines for Interexchange carriers should be based upon the number of presubscribed lines as described in section 69.116 of our Rules. Carriers and licensees whose fee payments are based upon a subscriber, line or circuit count should use the number of subscribers, lines or circuits as of December 31, 1993. Public mobile radio licensees with more than 99 locations that have been given multiple call signs for the same license should list only one call sign on Form 159 and provide a separate listing of all other related call signs. See "Special Instructions for Completing FCC Form 159 and 159-C" for correct Payment Type Codes to use when making installment payments. FILING PROCEDURES FOR LICENSEES OF INTERNATIONAL BEARER CIRCUITS Who Must Pay: Facilities-based common carriers as of December 31, 1993, activating international bearer circuits in any transmission facility for the provision of service to an end user or resale carrier. Private submarine cable operators also are to pay fees for international bearer circuits sold on an indefeasible right of use (IRU) basis or leased in their private submarine cables to any customer of the private cable operator. Governments and nonprofit (exempt under section 501 of the Internal Revenue Code) carriers and licensees are exempt from paying regulatory fees and should not submit payment, but may be asked to submit a current IRS Determination Letter documenting its nonprofit status, or a certification of governmental authority. Fee Calculation: $2.20 per active 64 KB circuit or equivalent. Equivalent circuits include the 64 KB circuit equivalent of larger bit stream circuits (e.g., the 64 KB equivalent of a 2.048 MB circuit is 30) and analog circuits such as 3 and 4 KHz circuits used for international services. The number of equivalent 64 KB circuits for analog television channels is shown in the following table: ANALOG TELEVISION CHANNEL SIZE NO. OF EQUIVALENT 64 KB CIRCUITS 36 MHz 630 24 MHz 288 18 MHz 240 Use fee code "CICN" on FCC Form 159 when making payment for international bearer circuits. FILING PROCEDURES FOR PUBLIC FIXED RADIO LICENSEES Who Must Pay: Domestic Public Fixed Radio Licensees: Licensees authorized as of October 1, 1993, to use microwave frequencies for video and data distribution communications within the United States. These services, authorized under Part 21 of our Rules, include the Point-to-Point Microwave Radio Service, Local Television Transmission Radio Service, Multipoint Distribution Service (single-channel and multichannel) and Digital Electronic Message Service. International Public Fixed Radio Licensees: Licensees authorized as common carriers as of October 1, 1993, to provide radio communications between the United States and a foreign point via microwave, HF or troposcatter systems (other than satellite earth stations). This does not include service between the U.S. and Mexico and the U.S. and Canada using frequencies above 72 MHz. Governments and nonprofit (exempt under section 501 of the Internal Revenue Code) carriers and licensees are exempt from paying regulatory fees and should not submit payment, but may be asked to submit a current IRS Determination Letter documenting its nonprofit status, or a certification of governmental authority. Fee Requirement: PUBLIC FIXED RADIO CATEGORY REGULATORY FEE FEE CODE Domestic $55 per call sign CCDN International $110 per call sign CFRN SPECIAL INSTRUCTIONS FOR COMPLETING FCC FORMS 159 & 159-C FCC Form 159 ("FCC Remittance Advice") and, as necessary, FCC Form 159-C ("Advice Continuation Sheet") must accompany all regulatory fee payments. Form 159 allows payors to report information on one or two payment items (e.g., subscribers, lines, circuits, call signs, or a combination of any two). Use Form 159-C to report additional payments. An FCC Form 159 and a 159-C have been attached to this Public Notice for you to complete and remit with your payment. You may make additional copies of the forms as required. In addition to the instructions for Form 159 (which are on the reverse side of the Form), the following information applies specifically to common carrier regulatees: Block (12) - "FCC CALL SIGN/OTHER ID": o Interexchange, local exchange and competitive access providers should enter their NECA company identification number. o Cellular, public mobile and public fixed radio licensees should enter their call sign. o Providers of international bearer circuits should leave this block blank. Block (14) - "PAYMENT TYPE CODES": CARRIERS CDIN: Use this code when making full payment for an interexchange carrier regulatory fee ($0.06 per pre-subscribed access line). CDI1: Use this code when making your first installment payment for an interexchange carrier regulatory fee. CDI2: To be used ONLY for the second installment payment for an interexchange carrier regulatory fee. CDXN: Use this code when making full payment for a local exchange carrier regulatory fee ($0.06 per access line). CDX1: Use this code when making your first installment payment for a local exchange carrier regulatory fee. CDX2: To be used ONLY for the second installment payment for a local exchange carrier regulatory fee. CDPN: Use this code when making payment for a competitive access provider regulatory fee ($0.06 per subscriber). INTERNATIONAL BEARER CIRCUITS CICN: Use this code when making a regulatory fee payment for a 64 KB or equivalent international bearer circuit ($2.20 per active 64 KB circuit or equivalent). PUBLIC MOBILE LICENSEES CDCN:Use this code when making a regulatory fee payment for a cellular radio license ($0.06 per subscriber). CDMN: Use this code when making a regulatory fee payment for a public mobile radio license ($0.06 per subscriber). PUBLIC FIXED RADIO LICENSEES CCDN: Use this code when making a regulatory fee payment for a domestic public fixed radio license ($55 per call sign). CFRN: Use this code when making a regulatory fee payment for an international public fixed radio license ($110 Per call sign). Block (15) - "QUANTITY": CARRIERS o Interexchange carriers should enter the number of presubscribed access lines. o Local exchange carriers should enter the number of access lines. o Competitive access providers should enter the number of subscribers. INTERNATIONAL BEARER CIRCUITS o Entities paying for international bearer circuits should enter the number of 64 KB or equivalent circuits. PUBLIC MOBILE LICENSEES o Cellular radio licensees should enter the number of subscribers for a particular call sign. o Public mobile radio licensees should enter the total number of subscribers. PUBLIC FIXED RADIO LICENSEES o All public fixed radio licensees should enter "1". Block (16) - "AMOUNT DUE": o For interexchange carrier regulatory fees . . . . . . which are not being paid by installment (payment type code CDIN), multiply the amount in Block 15 ("Quantity") by $0.06. . . . which are being paid by installment (payment type codes CDI1 or CDI2), multiply the amount in Block 15 ("Quantity") by $0.06 and then divide that result by 2. o For local exchange carrier regulatory fees . . . . . . which are not being paid by installment (payment type code CDXN), multiply the amount in Block 15 ("Quantity") by $0.06. . . . which are being paid be installment (payment type codes CDX1 or CDX2), multiply the amount in Block 15 ("Quantity") by $0.06 and then divide that result by 2. o For cellular radio licensees and competitive access providers (payment type codes CDCN and CDPN respectively), multiply the amount from Block 15 ("Quantity") by $0.06. If the amount from Block 15 ("Quantity) is less than 100, enter $6.00 - - this is the minimum regulatory fee. o For international bearer circuit payors (payment type code CICN), multiply the amount from Block 15 ("Quantity") by $2.20. o For public mobile radio licensees (payment type code CDMN), multiply the amount from Block 15 ("Quantity") by $0.06. o For domestic public fixed radio licensees (payment type code CCDN), enter $55.00. o For international public fixed radio licensees (payment type code CFRN), enter $110.00. Block (17) - "FCC CODE 1": o Leave this block blank. Block (18) - "FCC CODE 2": o For international bearer circuit payors, enter the company name. - FCC -